Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Feb. 28, 2017 | Jun. 30, 2016 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | Benefit Street Partners Realty Trust, Inc. | ||
Entity Central Index Key | 1,562,528 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Smaller Reporting Company | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 31,609,738 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 0 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | |
ASSETS | |||
Cash and cash equivalents | $ 118,048 | $ 14,807 | |
Restricted cash | 5,021 | 5,366 | |
Commercial mortgage loans, held for investment, net of allowance of $2,181 and $888 | [1] | 1,046,556 | 1,124,201 |
Commercial mortgage loans, held-for-sale, measured at fair value | 21,179 | 0 | |
Real estate securities, available for sale, at fair value | 49,049 | 130,754 | |
Receivable for loan repayment | 401 | 1,307 | |
Accrued interest receivable | [2] | 5,955 | 5,360 |
Prepaid expenses and other assets | 1,916 | 689 | |
Total assets | 1,248,125 | 1,282,484 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Collateralized loan obligations | 278,450 | 287,229 | |
Interest payable | [3] | 897 | 792 |
Distributions payable | 5,591 | 5,552 | |
Accounts payable and accrued expenses | 1,170 | 6,805 | |
Due to affiliates | 4,064 | 4,327 | |
Total liabilities | 614,475 | 628,155 | |
Commitment and Contingencies (See Note 8) | |||
Preferred stock, $0.01 par value, 50,000,000 authorized, none issued and outstanding as of December 31, 2016 and 2015 | 0 | 0 | |
Convertible stock (promote shares); $0.01 par value, 1,000 shares authorized, issued and outstanding as of December 31, 2015 and 0 shares issued and outstanding as of December 31, 2016 | 0 | 1 | |
Common stock, $0.01 par value, 949,999,000 shares authorized, 31,884,631 and 31,385,280 shares issued and outstanding as of December 31, 2016 and 2015, respectively | 319 | 314 | |
Additional paid-in capital | 704,500 | 691,590 | |
Accumulated other comprehensive loss | (500) | (2,254) | |
Accumulated deficit | (70,669) | (35,322) | |
Total stockholders' equity | 633,650 | 654,329 | |
Total liabilities and stockholders' equity | 1,248,125 | 1,282,484 | |
Allowance for commercial mortgage loans | 2,181 | 888 | |
Collaterized loan obligation | |||
ASSETS | |||
Cash and cash equivalents | 5 | 5 | |
Commercial mortgage loans, held for investment, net of allowance of $2,181 and $888 | 417,057 | 425,733 | |
Accrued interest receivable | 1,101 | 1,048 | |
Total assets | 418,163 | 426,786 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Interest payable | 564 | 513 | |
Total liabilities | 334,810 | 343,511 | |
Loans pledged as collateral | 417,100 | 425,700 | |
Allowance for commercial mortgage loans | 1,017 | 422 | |
CMBS | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Repurchase agreements | 257,664 | 206,239 | |
Real Estate Securities | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Repurchase agreements | 66,639 | $ 117,211 | |
Level II | |||
ASSETS | |||
Commercial mortgage loans, held-for-sale, measured at fair value | $ 0 | ||
[1] | Includes $417.1 million and $425.7 million of loans net of allowance of $1.0 million and $0.4 million pledged as collateral on collateralized loan obligations ("CLO"), a variable interest entity ("VIE") as of December 31, 2016 and 2015, respectively. | ||
[2] | Includes $1.1 million and $1.0 million of interest receivable for loans pledged as collateral on CLO, a VIE as of December 31, 2016 and 2015, respectively. | ||
[3] | Includes $0.6 million and $0.5 million of interest payable for loans pledged as collateral on CLO, a VIE as of December 31, 2016 and 2015, respectively. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Allowance for commercial mortgage loans | $ 2,181 | $ 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) | 0 | 1,000 |
Convertible stock, shares outstanding (in shares) | 0 | 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) | 31,884,631 | 31,385,280 |
Common stock, shares outstanding (in shares) | 31,884,631 | 31,385,280 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Interest Income: | ||||
Interest income | $ 79,404,000 | $ 59,393,000 | $ 15,466,000 | |
Interest expense | 23,169,000 | 12,268,000 | 2,196,000 | |
Net interest income | 56,235,000 | 47,125,000 | 13,270,000 | |
Operating Expenses: | ||||
Asset management and subordinated performance fee | 9,504,000 | 7,615,000 | 604,000 | |
Acquisition fees and acquisition expenses | 806,000 | 7,916,000 | 4,386,000 | |
Administrative services expenses | [1] | 4,376,000 | 644,000 | 0 |
Professional fees | 5,467,000 | 4,353,000 | 1,050,000 | |
Other expenses | 2,336,000 | 1,346,000 | 1,148,000 | |
Total Operating Expenses | 22,489,000 | 21,874,000 | 7,188,000 | |
Loan loss provision | 1,293,000 | 318,000 | 570,000 | |
Realized loss on sale of real estate securities | 1,906,000 | 0 | 0 | |
Impairment losses on real estate securities | 310,000 | 0 | 0 | |
Unrealized losses on loans held-for-sale | 247,000 | 0 | 0 | |
Realized gain on sale of commercial mortgage loan | 0 | 0 | 112,000 | |
Income before income taxes | 29,990,000 | 24,933,000 | 5,624,000 | |
Income tax provision | 0 | 0 | 209,000 | |
Net income | $ 29,990,000 | $ 24,933,000 | $ 5,415,000 | |
Basic net income per share (in dollars per share) | $ 0.95 | $ 1.03 | $ 0.75 | |
Diluted net income per share (in dollars per share) | $ 0.95 | $ 1.03 | $ 0.75 | |
Basic weighted average shares outstanding (in shares) | 31,659,274 | 24,253,905 | 7,227,169 | |
Diluted weighted average shares outstanding (in shares) | 31,666,504 | 24,259,169 | 7,232,559 | |
[1] | During the year ended December 31, 2015, the Company reported Administrative services expenses within the Professional fees line. For the year ended December 31, 2016 the amounts are presented separately and the change was applied retrospectively. We did not incur any administrative services expenses in 2014. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 29,990 | $ 24,933 | $ 5,415 |
Unrealized gain/(loss) on available-for-sale securities | 1,754 | (1,947) | (297) |
Comprehensive income attributable to Benefit Street Partners Realty Trust, Inc. | $ 31,744 | $ 22,986 | $ 5,118 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Loss | Accumulated Deficit | Convertible Stock | |
Balance, shares at Dec. 31, 2013 | 1,330,669 | 0 | |||||
Balance at Dec. 31, 2013 | $ 26,018 | $ 13 | $ 26,620 | $ (10) | $ (605) | $ 0 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuance of common stock (in shares) | 13,947,701 | ||||||
Issuance of common stock | 347,012 | $ 140 | 346,872 | ||||
Issuance of convertible stock (in shares) | 1,000 | ||||||
Issuance of convertible stock | 1 | $ 1 | |||||
Common stock repurchases (in shares) | (19,355) | ||||||
Common stock repurchases | (464) | (464) | |||||
Common stock offering costs, commissions and dealer manager fees | (37,206) | (37,206) | |||||
Common stock issued through distribution reinvestment plan (in shares) | 211,577 | ||||||
Common stock issued through distribution reinvestment plan | 5,027 | $ 2 | 5,025 | ||||
Share-based compensation (in shares) | 1,600 | ||||||
Share-based compensation | 27 | 27 | |||||
Net income | 5,415 | 5,415 | |||||
Distributions declared | (15,026) | (15,026) | |||||
Other comprehensive income (loss) | (297) | (297) | |||||
Balance, shares at Dec. 31, 2014 | 15,472,192 | 1,000 | |||||
Balance at Dec. 31, 2014 | 330,507 | $ 155 | 340,874 | (307) | (10,216) | $ 1 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuance of common stock (in shares) | 15,428,195 | ||||||
Issuance of common stock | 385,155 | $ 155 | 385,000 | ||||
Common stock repurchases (in shares) | (360,719) | ||||||
Common stock repurchases | (8,554) | $ (4) | (8,550) | ||||
Common stock offering costs, commissions and dealer manager fees | (45,917) | (45,917) | |||||
Common stock issued through distribution reinvestment plan (in shares) | 842,946 | ||||||
Common stock issued through distribution reinvestment plan | 20,161 | $ 8 | 20,153 | ||||
Share-based compensation (in shares) | 2,666 | ||||||
Share-based compensation | 30 | 30 | |||||
Net income | 24,933 | 24,933 | |||||
Distributions declared | (50,039) | (50,039) | |||||
Other comprehensive income (loss) | (1,947) | (1,947) | |||||
Balance, shares at Dec. 31, 2015 | 31,385,280 | 1,000 | |||||
Balance at Dec. 31, 2015 | 654,329 | $ 314 | 691,590 | (2,254) | (35,322) | $ 1 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Common stock repurchases (in shares) | (537,209) | ||||||
Common stock repurchases | (12,970) | $ (5) | (12,965) | ||||
Common stock offering costs, commissions and dealer manager fees | [1] | $ 793 | 793 | ||||
Common stock issued through distribution reinvestment plan (in shares) | 2,094,291 | 1,031,812 | |||||
Common stock issued through distribution reinvestment plan | $ 25,047 | $ 10 | 25,037 | ||||
Share-based compensation (in shares) | 4,748 | ||||||
Share-based compensation | 44 | 44 | |||||
Net income | 29,990 | 29,990 | |||||
Distributions declared | (65,337) | (65,337) | |||||
Conversion of convertible stocks (in shares) | (1,000) | ||||||
Conversion of convertible stocks | 0 | 1 | $ (1) | ||||
Other comprehensive income (loss) | 1,754 | 1,754 | |||||
Balance, shares at Dec. 31, 2016 | 31,884,631 | 0 | |||||
Balance at Dec. 31, 2016 | 633,650 | $ 319 | $ 704,500 | $ (500) | $ (70,669) | $ 0 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Reimbursement of excess payment of offering costs | $ 800 | ||||||
[1] | During 2016, the Company received reimbursement of excess payment of $0.8 million from the Former Advisor for previously paid Offering cost. Please refer to Note 9 to the consolidated financial statements for additional details of this reimbursement. |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Cash flows from operating activities: | ||||
Net income | $ 29,990 | $ 24,933 | $ 5,415 | |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Premium amortization and (discount accretion), net | (2,336) | (1,561) | (399) | |
Accretion of deferred commitment fees | (1,535) | (1,068) | (166) | |
Amortization of deferred financing costs | 4,048 | 2,819 | 479 | |
Realized gain on sale of commercial mortgage loan | 0 | 0 | (112) | |
Share-based compensation | 44 | 30 | 27 | |
Realized loss on sale of real estate securities | 1,906 | 0 | 0 | |
Impairment losses on real estate securities | 310 | 0 | 0 | |
Unrealized losses on loans held-for-sale | 247 | 0 | 0 | |
Loan loss provision | 1,293 | 318 | 570 | |
Changes in assets and liabilities: | ||||
Accrued interest receivable | 940 | (1,426) | (2,574) | |
Prepaid expenses and other assets | (85) | 723 | (18) | |
Accounts payable and accrued expenses | 360 | (1,707) | (276) | |
Due to affiliates | (263) | 1,812 | (478) | |
Interest payable | 105 | 560 | 217 | |
Net cash provided by operating activities: | 35,024 | 25,433 | 2,685 | |
Cash flows from investing activities: | ||||
Origination and purchase of commercial mortgage loans | (53,640) | (793,731) | (429,941) | |
Purchase of real estate securities | 0 | (85,463) | (45,597) | |
Proceeds from sale of real estate securities | 79,082 | 0 | 0 | |
Proceeds from sale of commercial mortgage loan | 44,355 | 0 | 3,692 | |
Principal repayments received on commercial mortgage loans | 67,396 | 126,336 | 136 | |
Principal repayments received on real estate securities | 2,218 | 3,010 | 73 | |
Net cash provided by (used in) investing activities | 139,411 | (749,848) | (471,637) | |
Cash flows from financing activities: | ||||
Proceeds from issuances of common stock | 0 | 385,203 | 345,944 | |
Common stock repurchases | (18,965) | (2,555) | (464) | |
Proceeds from issuances of convertible stock | 0 | 0 | 1 | |
Reimbursements/(payments) of offering costs and fees related to common stock issuances | [1] | 793 | (45,357) | (35,598) |
Proceeds from issuance of collateralized loan obligations | 0 | 292,484 | 0 | |
Repayments of collateralized loan obligation | (9,150) | 0 | 0 | |
Borrowings on repurchase agreements - commercial mortgage loans | 233,855 | 423,538 | 150,169 | |
Repayments of repurchase agreements - commercial mortgage loans | (182,430) | (367,468) | 0 | |
Borrowings on repurchase agreements - real estate securities | 1,208,244 | 690,406 | 31,598 | |
Repayments of repurchase agreements - real estate securities | (1,258,816) | (599,464) | (5,329) | |
Borrowings on revolving line of credit with affiliate | 0 | 0 | 5,550 | |
Repayments of revolving line of credit with affiliate | 0 | 0 | (12,855) | |
Decrease/(Increase) in restricted cash related to financing activities | 345 | (5,298) | (68) | |
Payments of deferred financing costs | (4,819) | (5,704) | (2,196) | |
Distributions paid | (40,251) | (26,949) | (7,592) | |
Net cash (used in) provided by financing activities: | (71,194) | 738,836 | 469,160 | |
Net change in cash and cash equivalents | 103,241 | 14,421 | 208 | |
Cash and cash equivalents, beginning of period | 14,807 | 386 | 178 | |
Cash and cash equivalents, end of period | 118,048 | 14,807 | 386 | |
Supplemental disclosures of cash flow information: | ||||
Income taxes paid | 0 | 159 | 50 | |
Interest paid | 19,016 | 8,889 | 1,500 | |
Supplemental disclosures of non-cash flow information: | ||||
Common stock issued through distribution reinvestment plan | 25,047 | 20,161 | 5,027 | |
Distribution Payable | 5,591 | 5,552 | 2,623 | |
Receivable for common stock issued | 0 | 0 | 1,068 | |
Loans transferred to commercial real estate loans, held-for-sale, transferred at fair value | 21,179 | $ 0 | $ 0 | |
Reimbursement of excess payment of offering costs | $ 800 | |||
[1] | During 2016, the Company received reimbursement of excess payment of $0.8 million from the Former Advisor for Offering costs. Please refer to Note 9 to the consolidated financial statements for additional details of this reimbursement. |
Organization and Business Opera
Organization and Business Operations | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Business Operations | Organization and Business Operations Benefit Street Partners Realty Trust, Inc. (the "Company"), formerly known as Realty Finance Trust, Inc., is a real estate finance company that primarily originates, acquires and manages a diversified portfolio of commercial real estate debt secured by properties located both within and outside of the United States. The Company was incorporated in Maryland on November 15, 2012 . The Company made a tax election to be treated as a REIT for U.S. federal income tax purposes commencing with its taxable year ended December 31, 2013 and expects to continue to operate so as to qualify as a REIT and conducts its operations to qualify as a real estate investment trust ("REIT") for U.S. federal income tax purposes. On May 14, 2013 , the Company commenced business operations after raising in excess of $2.0 million of equity, the amount required for the Company to release equity proceeds from escrow. Substantially all of the Company's business is conducted through Benefit Street Partners Realty Operating Partnership, L.P. (the “OP”), a Delaware limited partnership. The Company is the sole general partner and directly or indirectly holds all of the units of limited partner interests in the OP. Benefit Street Partners L.L.C. serves as the Company's advisor (the "Advisor") pursuant to an advisory agreement executed on September 29, 2016 (the “Advisory Agreement”). The Advisor, an investment adviser registered with the U.S. Securities and Exchange Commission (“SEC”), is a credit-focused alternative asset management firm. Established in 2008, the Advisor's credit platform manages funds for institutions and high-net-worth investors across various credit funds and complementary strategies including high yield, levered loans, private / opportunistic debt, liquid credit, structured credit and commercial real estate debt. These strategies complement each other as they all leverage the sourcing, analytical, compliance, and operational capabilities that encompass the platform. The Advisor is in partnership with Providence Equity Partners L.L.C., a global private equity firm. Prior to September 29, 2016, Realty Finance Advisor, LLC ("Former Advisor") was the Company's advisor. The Former Advisor is controlled by AR Global Investments, LLC ("AR Global"). Commercial real estate debt investments may include first mortgage loans, subordinated mortgage loans, mezzanine loans and participations in such loans. The Company also invests in commercial real estate securities. Real estate securities may include commercial mortgage-backed securities ("CMBS"), senior unsecured debt of publicly traded REITs, debt or equity securities of other publicly traded real estate companies and collateralized debt obligations ("CDOs"). The Company has no direct employees. The Company has retained the Advisor to manage the Company's affairs on a day-to-day basis. The Advisor receives compensation and fees for services related to the investment and management of the Company's assets and the operations of the Company. Realty Capital Securities, LLC, (the “Former Dealer Manager”) served as the dealer manager of the Offering. The Former Advisor and Former Dealer Manager are under common control with AR Global, the parent of American Realty Capital VIII, LLC (the "Former Sponsor"). As a result they are related parties and each of them received compensation and fees for services related to the Offering (as described below), the investment and management of the Company's assets and the operations of the Company. The Former Dealer Manager served as the dealer manager of the Company's primary offering and, together with certain of its affiliates, continued to provide us with various services through December 31, 2015. RCS Capital Corporation, the parent company of the 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 Former Sponsor. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 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 have been prepared on the accrual basis of accounting in conformity with accounting principles generally accepted in the United States of America ("GAAP") and pursuant to the requirements for reporting on Form 10-K and Regulation S-X, as appropriate. 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 annual 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 reporting period. The consolidated financial statements of the Company are prepared on an accrual basis of accounting. Principles of Consolidation and Basis of Presentation The accompanying consolidated financial statements include the accounts of the Company, the OP and its subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. In determining whether the Company has a controlling financial interest in a joint venture and the requirement to consolidate the accounts of that entity, management considers factors such as ownership interest, authority to make decisions and contractual and substantive participating rights of the other partners or members as well as whether the entity is a variable interest entity for which the Company is the primary beneficiary. The Company consolidates all entities that the Company controls through either majority ownership or voting rights. In addition, the Company consolidates all variable interest entities ("VIE") of which the Company is considered 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 consolidated balance sheet in accordance with ASC 810 - Consolidation. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Management makes significant estimates regarding classification of investments, fair value measurements, credit losses and impairments of investments and derivative financial instruments and hedging activities, as applicable. Acquisition Fees and Acquisition Expenses The Company incurs acquisition fees and acquisition expenses payable to the Advisor. The Company pays the Advisor an acquisition fee based on the principal amount funded by the Company to originate or acquire commercial mortgage loan investments or on the anticipated net equity funded by the Company to acquire real estate securities. Acquisition fees and acquisition expenses paid to the Company's Advisor in connection with the origination and acquisition of commercial mortgage loan investments and acquisition of real estate securities are evaluated based on the nature of the expense to determine if they should be expensed in the period incurred or capitalized and amortized over the life of the investment. The Company capitalizes certain direct costs relating to the loan origination activities and the cost is amortized over the life of the loan. Commercial Mortgage Loans Commercial mortgage loans that are held for investment purposes and are anticipated to be held until maturity, are carried at cost, net of unamortized acquisition expenses, discounts or premiums and unfunded commitments. Commercial mortgage loans, held for investment purposes, that are deemed to be impaired will be carried at amortized cost less a specific allowance for loan losses. Interest income is recorded on the accrual basis and related discounts, premiums and acquisition expenses on investments are amortized over the life of the investment using the effective interest method. Amortization is reflected as an adjustment to interest income in the Company’s consolidated statements of operations. Guaranteed loan exit fees payable by the borrower upon maturity are accreted over the life of the investment using the effective interest method. The accretion of guaranteed loan exit fees is recognized in interest income in the Company's consolidated statements of operation. Commercial loans that are intended to be sold in the foreseeable future are reported as held-for-sale and are transferred at fair value then recorded at the lower of cost or fair value with changes recorded through the statement of operations. Unamortized loan origination costs for commercial loans held-for-sale are capitalized as part of the carrying value of the loans and recognized upon the sale of such loans. Amortization of origination costs ceases upon transfer of commercial loans to held-for-sale. 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, given the fact the Company has not experienced any losses, and takes into account current collateral and economic conditions affecting the probability and severity of losses when establishing the allowance for loan losses. The Company performs a comprehensive analysis of its loan portfolio and assigns risk ratings to loans that incorporate management's current judgments about their credit quality based on all known and relevant internal and external factors that may affect collectability. The Company considers, among other things, payment status, lien position, borrower financial resources and investment in collateral, collateral type, project economics and geographic location as well as national and regional economic factors. This methodology results in loans being segmented by risk classification into risk rating categories that are associated with estimated probabilities of default and principal loss. Ratings range from "1" to "5" with "1" representing the lowest risk of loss and "5" representing the highest risk of loss. The asset-specific reserve component relates to reserves for losses on individual impaired loans. The Company considers a loan to be impaired when, based upon current information and events, it believes that it is probable that the Company will be unable to collect all amounts due under the contractual terms of the loan agreement. This assessment is made on an individual loan basis each quarter based on such factors as payment status, lien position, borrower financial resources and investment in collateral, collateral type, project economics and geographical location as well as national and regional economic factors. A reserve is established for an impaired loan when the present value of payments expected to be received, observable market prices or the estimated fair value of the collateral (for loans that are dependent on the collateral for repayment) is lower than the carrying value of that loan. For collateral dependent impaired loans, impairment is measured using the estimated fair value of collateral less the estimated cost to sell. Valuations are performed or obtained at the time a loan is determined to be impaired and designated non-performing, and they are updated if circumstances indicate that a significant change in value has occurred. The Advisor generally will use the income approach through internally developed valuation models to estimate the fair value of the collateral for such loans. In more limited cases, the Advisor will obtain external "as is" appraisals for loan collateral, generally when third party participations exist. A loan is also considered impaired if its terms are modified in a troubled debt restructuring ("TDR"). A TDR occurs when a concession is granted and the debtor is experiencing financial difficulties. Impairments on TDR loans are generally measured based on the present value of expected future cash flows discounted at the effective interest rate of the original loans. The Company designates non-performing loans at such time as (i) loan payments become 90-days past due; (ii) the loan has a maturity default; or (iii) in the opinion of the Company, it is probable the Company will be unable to collect all amounts due according to the contractual terms of the loan. Income recognition will be suspended when a loan is designated non-performing and resumed only when the suspended loan becomes contractually current and performance is demonstrated to have resumed. A loan will be written off when it is no longer realizable and legally discharged. Real Estate Securities On the acquisition date, all of the Company’s commercial real estate securities were classified as available for sale and carried at fair value, and subsequently any unrealized gains or losses are recognized as a component of accumulated other comprehensive income or loss. The Company may elect the fair value option for its real estate securities, and as a result, any unrealized gains or losses on such real estate securities will be recorded in the Company’s consolidated statement of operations. No such election has been made to date. Related discounts, premiums and acquisition expenses on investments are amortized over the life of the investment using the effective interest method. Amortization is reflected as an adjustment to interest income in the Company’s consolidated statements of operations. Impairment Analysis of Real Estate Securities Commercial real estate securities for which the fair value option has not been elected are periodically evaluated for other-than-temporary impairment. If the fair value of a security is less than its amortized cost, the security is considered impaired. Impairment of a security is considered other-than-temporary when (i) the Company has the intent to sell the impaired security; (ii) it is more likely than not the Company will be required to sell the security; or (iii) the Company does not expect to recover the entire amortized cost of the security. If the Company determines that an other-than-temporary impairment exists and a sale is likely, the impairment charge is recognized as an impairment of assets on the Company's consolidated statement of operations. If a sale is not expected, the portion of the impairment charge related to credit factors is recorded as an impairment of assets on the Company's consolidated statement of operations with the remainder recorded as an unrealized gain or loss on investments reported as a component of accumulated other comprehensive income or loss. The Company did not have any other-than-temporary impairment for the years ended December 31, 2016 and 2015 . Commercial real estate securities for which the fair value option has been elected are not evaluated for other-than-temporary impairment as changes in fair value are recorded in the Company’s consolidated statement of operations. No such election has been made to date. Repurchase Agreements Commercial mortgage loans and real estate securities sold under repurchase agreements have been treated as collateralized financing transactions because the Company maintains effective control over the transferred securities. Commercial mortgage loans and real estate securities financed through a repurchase agreement remain on the Company’s consolidated balance sheet as an asset and cash received from the purchaser is recorded as a liability. Interest paid in accordance with repurchase agreements is recorded in interest expense on the Company's consolidated statements of operations. Cash and Cash Equivalents Cash represents deposits with high quality financial institutions. These deposits are guaranteed by the Federal Deposit Insurance Company up to an insurance limit. Cash equivalents include short-term, liquid investments in money market funds. Restricted Cash Restricted cash primarily consists of cash pledged as margin on repurchase agreements. Prepaid Expenses Prepaid expenses consists of deferred financing cost related to our various Master Repurchase Agreements as well as certain subscription cost. Deferred financing costs are amortized over the terms of the respective financing agreement using the effective interest method and included in the interest expense on the accompanying consolidated statements of operations. Unamortized deferred financing costs are generally expensed when the associated debt is refinanced or repaid before maturity. Share Repurchase Program The Company has a Share Repurchase Program (the "SRP"), which was amended as of February 28, 2016, that enables stockholders to sell their shares to the Company. Subject to certain conditions, stockholders that purchased shares of our common stock or received their shares from us (directly or indirectly) through one or more non-cash transactions and have held their shares for a period of at least one year may request that we repurchase their shares of common stock so long as the repurchase otherwise complies with the provisions of Maryland law. Repurchase requests made following the death or qualifying disability of a stockholder will not be subject to any minimum holding period. The repurchase price per share for requests other than for death or disability will be equal to the most-recent estimated net asset value per share of our common stock calculated by our Advisor in accordance with our valuation guidelines, or estimated per-share NAV, multiplied by a percentage equal to (i) 92.5% , if the person seeking repurchase has held his or her shares for a period greater than one year and less than two years; (ii) 95% , if the person seeking repurchase has held his or her shares for a period greater than two years and less than three years; (iii) 97.5% , if the person seeking repurchase has held his or her shares for a period greater than three years and less than four years; or (iv) 100% , if the person seeking repurchase has held his or her shares for a period greater than four years. In the case of requests for death or disability, the repurchase price per share will be equal to the estimated per-share NAV at the time of repurchase. Repurchases pursuant to the SRP, when requested, generally will be made semiannually (each six-month period ending June 30 or December 31, a “fiscal semester”). Repurchases for any fiscal semester will be limited to a maximum of 2.5% of the weighted average number of shares of common stock outstanding during the previous fiscal year, with a maximum for any fiscal year of 5.0% of the weighted average number of shares of common stock outstanding during the previous fiscal year. Funding for repurchases pursuant to the SRP for any given fiscal semester will be limited to proceeds received during that same fiscal semester through the issuance of common stock pursuant to any DRIP in effect from time to time, provided that the Board has the power, in its sole discretion, to determine the amount of shares repurchased during any fiscal semester as well as the amount of funds to be used for that purpose. Due to these limitations, we cannot guarantee that we will be able to accommodate all repurchase requests made during any fiscal semester or fiscal year. However, a stockholder may withdraw its request at any time or ask that we honor the request when funds are available. Pending repurchase requests will be honored on a pro rata basis. We will generally pay repurchase proceeds, less any applicable tax or other withholding required by law, by the 31st day following the end of the fiscal semester during which the repurchase request was made. Calculations of our estimated per-share NAV will occur periodically, at the discretion of the Board, provided that such calculations will be made at least annually. Following its calculation, our estimated per-share NAV will be disclosed in a periodic report. The most recent calculation of our estimated per-share NAV approved by the Board occurred on November 10, 2016 based on our net asset value as of September 30, 2016 and was equal to $20.05 . When a stockholder requests a redemption and the redemption is approved by the board of directors, we will reclassify such obligation from equity to a liability based on the settlement value of the obligation. Shares repurchased under the SRP will have the status of authorized but unissued shares. Distribution Reinvestment Plan Pursuant to the DRIP, stockholders may elect to reinvest distributions by purchasing shares of common stock in lieu of receiving cash. No dealer manager fees or selling commissions are paid with respect to shares purchased pursuant to the DRIP. Participants purchasing shares pursuant to the DRIP have the same rights and are treated in the same manner as if such shares were issued pursuant to the Offering. The board of directors may designate that certain cash or other distributions be excluded from the DRIP. The Company has the right to amend any aspect of the DRIP or terminate the DRIP with ten days ’ notice to participants. Shares issued under the DRIP are recorded to equity in the consolidated balance sheet in the period distributions are declared. There have been 2,094,291 shares issued under the DRIP as of December 31, 2016 . Offering and Related Costs Prior to the termination of the Offering, offering and related costs included all expenses incurred in connection with the Offering. Offering costs (other than selling commissions and the dealer manager fee) of the Company were paid by the Former Advisor, the Former Dealer Manager or their affiliates on behalf of the Company. Offering costs were reclassified from deferred costs to stockholders' equity on the day the Company commenced its operations. Offering costs included all expenses incurred by the Company in connection with its Offering as of the balance sheet date presented. These costs includes but were not limited to (i) legal, accounting, printing, mailing and filing fees; (ii) escrow service related fees; (iii) reimbursement of the Former Dealer Manager for amounts it paid to reimburse the bona fide diligence expenses of broker-dealers; and (iv) reimbursement to the Former Advisor for a portion of the costs of its employees and other costs in connection with preparing supplemental sales materials and related offering activities. The Company was obligated to reimburse the Former Advisor or its affiliates, as applicable, for organizational and offering costs paid by them on behalf of the Company to the extent organizational and offering costs (excluding selling commissions and the dealer manager fee) incurred by the Company in the Offering did not exceed 2% of gross offering proceeds. The Former Advisor was required to reimburse the Company to the extent that organization and offering and related costs paid by the Company exceeded 2% of gross offering proceeds. As a result, these costs were only a liability of the Company to the extent aggregate selling commissions, the dealer manager fees and other organization and offering costs did not exceed 12% of the gross Offering proceeds determined at the end of the Offering. See Note 9 - Related Party Transactions and Arrangements . Share-Based Compensation The Company has a share-based incentive plan for certain of the Company's directors, officers and employees of the Advisor and its affiliates. Share-based awards are measured at the grant date fair value and is recognized as compensation expense on a on a straight line basis over the related vesting period of the award. See Note 10 - Share-Based Compensation . Income Taxes The Company conducts its operations to qualify as a REIT for U.S. federal income tax purposes beginning with its tax return for the taxable year ended December 31, 2013 . As a REIT, the Company generally will not be subject to federal corporate income tax as long as it distributes at least 90% of its REIT taxable income to its stockholders and a number of other organizational and operational requirements. However, even if we qualify for taxation as a REIT, we may be subject to certain state and local taxes on our income in addition to U.S. federal income and excise taxes on our undistributed income. Income tax of $0.2 million for the year ended December 31, 2014 represents the New York City Unincorporated Business Tax. There was no income tax provision for the years ended December 31, 2016 and 2015 . The Company uses a more-likely-than-not threshold for recognition and derecognition of tax positions taken or to be taken in a tax return. The Company has assessed its tax positions for all open tax years beginning with December 31, 2013 and concluded that there were no uncertainties to be recognized. The Company’s accounting policy with respect to interest and penalties related to tax uncertainties is to classify these amounts as provision for income taxes. The estimated tax character of the $2.06 distributions per common share declared during 2016 was $0.98 ordinary income and $1.08 return of capital. The estimated tax characteristic of $2.06 distributions per common share declared during 2015 was $1.31 ordinary income and $0.75 return of capital. Per Share Data The Company calculates basic earnings per share by dividing net income attributable to the Company for the period by the weighted-average number of shares of common stock outstanding for that period. Diluted earnings per share reflects the potential dilution that could occur from shares issuable in connection with the restricted stock plan and if convertible shares were exercised, except when doing so would be anti-dilutive. Reportable Segments The Company conducts its business through the following segments: • The real estate debt business which is focused on originating, acquiring and asset managing commercial real estate debt investments, including first mortgage loans, subordinate mortgages, mezzanine loans and participations in such loans. • The real estate securities business which is focused on investing in and asset managing commercial real estate securities primarily consisting of CMBS and may include unsecured REIT debt, CDO notes and other securities. See Note 13 - Segment Reporting for further information regarding the Company's segments. Reclassification and Presentation During the year ended December 31, 2014, the Company previously disclosed common stock repurchase of $0.5 million on the consolidated statement of cash flows within Proceeds from issuances of common stock. For the period ended December 31, 2016 and December 31, 2015, the amount is presented separately within Common stock repurchases line within the statement of cash flows. The Company previously disclosed board and insurance expenses of $0.3 million and $0.2 million respectively for year ended December 31, 2014 within the consolidated statements of operations. The Company combined the board and insurance expenses of $0.2 million and $0.2 million , respectively for the year ending December 31, 2015 within Other Expenses in the consolidated statement of operations. The change is applied retrospectively for all periods presented within the consolidated financial statements. During the years ended December 31, 2015 and 2014, the Company previously disclosed Administrative services expenses of $0.6 million and $0 million , respectively, on the consolidated statement of operations within the Professional Fees line. For the year ended December 31, 2016 the amounts are presented separately. The change is applied retrospectively for all periods presented within the consolidated financial statements. Principles of Consolidation We consolidate all entities that we control through either majority ownership or voting rights. In addition, we consolidate all variable interest entities ("VIE") of which we are considered the primarily beneficiary. VIEs are defined as entities in which equity investors (i) do not have the characteristics of a controlling financial interest and/or (ii) do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties. The entity that consolidates a VIE is known as its primary beneficiary and is generally the entity with (i) the power to direct the activities that most significantly affect the VIE’s economic performance and (ii) the right to receive benefits from the VIE or the obligation to absorb losses of the VIE that could be significant to the VIE. Recently Issued Accounting Pronouncements In August 2014, the FASB issued an update that requires management to assess and entity’s ability to continue as a going concern by incorporating and expanding upon certain principles that are currently in U.S. auditing standards. The amendments provide a definition of the term ‘substantial doubt’ and include principles for considering the mitigating effect of management’s plans. The amendments also require an evaluation every reporting period, including interim periods for a period of one year after the date that the financial statements are issued (or available to be issued), and certain disclosures when substantial doubt is alleviated or not alleviated. The revised guidance is effective for reporting periods ending after December 15, 2016. In 2016, the Company adopted this revised guidance which did not have any effect on the Company’s consolidated financial statements. In February 2015, the FASB amended the accounting for consolidation of certain legal entities. The amendments modify the evaluation of whether certain legal entities are variable interest entities ("VIEs") or voting interest entities, eliminate the presumption that a general partner should consolidate a limited partnership and affect the consolidation analysis of reporting entities that are involved with VIEs (particularly those that have fee arrangements and related party relationships). The revised guidance is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. Early adoption 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 has adopted the provisions of this guidance beginning January 1, 2016, electing to account for forfeitures when they occur, and determined that there is no impact to the Company’s consolidated financial position, results of operations and cash flows. In March 2016, the FASB issued guidance which requires an entity to determine whether the nature of its promise to provide goods or services to a customer is performed in a principal or agent capacity and to recognize revenue in a gross or net manner based on its principal/agent designation. This guidance is effective for public business entities for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2017. Early adoption is permitted. The Company is currently evaluating the impact of this new guidance. In June 2016, the FASB issued guidance that changes how entities measure credit losses for financial assets carried at amortized cost. The update eliminates the requirement that a credit loss must be probable before it can be recognized and instead requires an entity to recognize the current estimate of all expected credit losses. Additionally, the update requires credit losses on available-for-sale debt securities to be carried as an allowance rather than as a direct write-down of the asset. The amendments become effective for reporting periods beginning after December 15, 2019. The amendments may be adopted early for reporting periods beginning after December 15, 2018. The Company is currently evaluating the impact of this new guidance. In August 2016, the FASB issued guidance on how certain transactions should be classified and presented in the statement of cash flows as either operating, investing or financing activities. Among other things, the update provides specific guidance on where to classify debt prepayment and extinguishment costs, payments for contingent consideration made after a business combination and distributions received from equity method investments. The revised guidance is effective for reporting periods beginning after December 15, 2017. Early adoption is permitted. The Company is currently evaluating the impact of this new guidance. In October 2016, the FASB issued guidance where a reporting entity will need to evaluate if it should consolidate a VIE. The amendments change the evaluation of whether a reporting entity is the primary beneficiary of a VIE by changing how a single decision maker of a VIE treats indirect interests in the entity held through related parties that are under common control with the reporting entity. The revised guidance is effective for reporting periods beginning after December 15, 2016. Early adoption is permitted. We do not expect this guidance to have a material impact on the Company’s consolidated financial statements. In November 2016, the FASB issued guidance on the classification of restricted cash in the statement of cash flows. The amendment requires restricted cash to be included in the beginning-of-period and end-of-period total cash amounts. Therefore, transfers between cash and restricted cash will no longer be shown on the statement of cash flows. The guidance is effective for reporting periods beginning after December 15, 2017. Early adoption is permitted. We do not expect this guidance to have a material impact on the Company’s consolidated financial statements. |
Commercial Mortgage Loans
Commercial Mortgage Loans | 12 Months Ended |
Dec. 31, 2016 | |
Receivables [Abstract] | |
Commercial Mortgage Loans | Commercial Mortgage Loans The following table is a summary of the Company's commercial mortgage loans, held-for-investment, carrying values by class (in thousands): December 31, 2016 December 31, 2015 Senior loans $ 901,907 $ 894,075 Mezzanine loans 136,830 221,014 Subordinated loans 10,000 10,000 Total gross carrying value of loans 1,048,737 1,125,089 Less: Allowance for loan losses 2,181 888 Total commercial mortgage loans, held-for-investment, net $ 1,046,556 $ 1,124,201 The following table presents the activity in the Company's allowance for loan losses (in thousands): Year Ended December 31, 2016 2015 Beginning of period $ 888 $ 570 Provision for loan losses 1,293 318 Charge-offs — — Recoveries — — Ending allowance for loan losses $ 2,181 $ 888 As of December 31, 2016 and 2015 , the Company's total commercial mortgage loan portfolio, including loans held-for-sale, comprised of 71 and 77 loans, respectively. December 31, 2016 December 31, 2015 Loan Type Par Value Percentage Par Value Percentage Office $ 340,944 31.6 % $ 307,876 27.2 % Multifamily 329,203 30.6 % 305,129 26.9 % Hospitality 143,582 13.3 % 171,752 15.1 % Retail 154,684 14.4 % 158,784 14.0 % Mixed Use 56,136 5.2 % 138,798 12.2 % Industrial 52,688 4.9 % 52,107 4.6 % $ 1,077,237 100.0 % $ 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: InvestmentRating 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 the potential of some interest loss but still expecting a positive return on investment. Trends and risk factors are negative. 5 Underperforming investment with expected loss of interest and some principal. All commercial mortgage loans are assigned an initial risk rating of 2.0 . As of December 31, 2016 and 2015 , the weighted average risk rating of loans was 2.1 and 2.0 , respectively. As of December 31, 2016 and 2015 , the Company did not have any loans that were past due on their payments, in non-accrual status or impaired. For the year ended December 31, 2016 and 2015 , the activity in the Company's loan portfolio was as follows (in thousands): Year Ended December 31, 2016 2015 Balance at Beginning of Year $ 1,124,201 $ 456,884 Acquisitions and originations 53,640 793,731 Dispositions (44,355 ) — Principal repayments (66,490 ) (127,643 ) Discount accretion and premium amortization* 2,279 1,547 Loans transferred to commercial real estate loans, held-for-sale, at fair value (21,179 ) — Unrealized losses on loans held-for-sale (247 ) — Provision for loan losses (1,293 ) (318 ) Balance at End of Year $ 1,046,556 $ 1,124,201 ________________________ * Includes amortization of capitalized acquisition fees and expenses. |
Real Estate Securities
Real Estate Securities | 12 Months Ended |
Dec. 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 December 31, 2016 6 5.75 % February 2020 $ 50,000 $ 49,049 December 31, 2015 16 4.71 % February 2019 133,183 130,754 The Company classified its CMBS investments as available-for-sale as of December 31, 2016 and 2015 . These investments are reported at fair value in the consolidated balance sheet with changes in fair value recorded in accumulated other comprehensive income or loss. The following table shows the changes in fair value of the Company's CMBS investments (in thousands): Amortized Cost Unrealized Gains Unrealized Losses Fair Value December 31, 2016 $ 49,548 $ — $ (499 ) $ 49,049 December 31, 2015 133,008 — (2,254 ) 130,754 As of December 31, 2016 , the Company held 6 CMBS positions with an amortized cost of $49.5 million , with an unrealized loss of $0.5 million , of which 2 positions had a total unrealized loss of $0.2 million for a period greater than 12 months. For the year ended December 31, 2016 , the Company recognized losses of approximately $1.9 million on the sale of ten securities, recorded within the realized loss on sale of real estate securities in the consolidated statement of operations. The Company did not have any realized losses during the years ended December 31, 2015 and December 31, 2014 . Subsequent to December 31, 2016, the Company sold four securities. One CMBS security was other than temporarily impaired at December 31, 2016 and losses of $0.3 million were recognized, within the impairment losses on real estate securities in the consolidated statement of operations for the year ended December 31, 2016 . The other 3 CMBS securities were sold at or close to par. The Company did not have any impairment losses during the years ended December 31, 2015 and December 31, 2014 . For the remaining two securities not sold subsequent to December 31, 2016 , the Company does not believe any of the positions are other than temporarily impaired based on current market spreads. The Company does not intend to dispose of these CMBS positions, nor does the Company believe it is more likely than not that the Company will be required to dispose of these positions before recovery of their amortized cost basis which may be at their maturity. |
Debt
Debt | 12 Months Ended |
Dec. 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, subject to various adjustments. The Barclays Repo Facility provided up to $150.0 million in advances. The initial maturity date of the JPM Repo Facility was June 18, 2016, with a one year extension at the Company’s option. The Company exercised the extension option with the JPM Repo Facility lender, extending the maturity date to June 17, 2017. The Company entered into an amendment of the Barclays Repo Facility, dated as of September 2, 2016, upon the payment of an amendment fee, pursuant to which the maturity date of the Barclays Repo Facility was extended to October 6, 2016. On October 5, 2016, the JPM Repo Facility was amended to, among other things, increase the maximum advance capacity to $300 million . The proceeds from the increase in the size of the JPM Repo Facility were used to pay off the outstanding balance on the Barclays Repo Facility and the Barclays Repo Facility was terminated. On December 27, 2016 the Company entered into a repurchase facility with Goldman Sachs Bank USA (the "GS Repo Facility"). The GS Repo Facility provides up to $250.0 million in advances, subject to adjustment, which the Company expects to use to finance the acquisition or origination of eligible loans, including first mortgage loans, subordinated mortgage loans and participation interests therein. The initial maturity date of the GS Repo Facility is December 27, 2018, with a one -year extension at the Company’s option, which may be exercised upon the satisfaction of certain conditions. The Company expects to use advances from the JPM Repo Facility and the GS Repo Facility to finance the acquisition or origination of eligible loans, including first mortgage loans, subordinated mortgage loans, mezzanine loans and participation interests therein. As of December 31, 2016 and 2015 , the Company had $257.7 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 4.50% , depending on the attributes of the purchased assets. As of December 31, 2016 and 2015 , the weighted average interest rate on advances was 3.08% and 3.11% respectively. The Company incurred $6.0 million and $5.5 million in interest expense on the JPM Repo Facility for the year ended December 31, 2016 and 2015 , respectively, including amortization of deferred financing costs. As of December 31, 2016, the Company had no advances under the GS Repo Facility. Advances under the GS Repo Facility accrue interest at per annum rates equal to the sum of (i) the applicable LIBOR index rate plus (ii) a margin between 2.35% to 2.85% , depending on the attributes of the purchased assets. As of December 31, 2015 , the Company had $121.9 million outstanding under the Barclays Repo Facility, and as noted above, was terminated on October 5, 2016. As of December 31, 2016 and December 31, 2015 , the weighted average interest rate on advances was 2.87% and 2.16% respectively. The Company incurred $6.1 million and $4.0 million of interest expense on the Barclays Repo Facility for the year ended December 31, 2016 and 2015 , respectively, including amortization of deferred financing costs. The JPM Repo Facility and the GS Repo Facility generally provide that in the event of a decrease in the value of our collateral, the lenders can demand additional collateral. Should the value of the Company’s collateral decrease, whether as a result of deteriorating credit quality, an increase in credit market spreads or otherwise, resulting margin calls may cause an adverse change in the Company’s liquidity position. As of December 31, 2016, the Company is in compliance with all debt covenants. Repurchase Agreements - Real Estate Securities The Company has entered into various Master Repurchase Agreements (the "MRAs") that allow the Company to sell real estate securities while providing a fixed repurchase price for the same real estate securities in the future. The repurchase contracts on each security under an MRA generally mature in 30 - 90 days and terms are adjusted for current market rates as necessary. Below is a summary of the Company's MRAs as of December 31, 2016 and 2015 (in thousands). As of December 31, 2016 Weighted Average Counterparty Amount Outstanding Accrued Interest Collateral Pledged (*) Interest Rate Days to Maturity JP Morgan Securities LLC $ 59,122 $ 96 $ 92,658 2.55 % 6 Citigroup Global Markets, Inc. 3,879 1 4,850 2.11 % 26 Wells Fargo Securities, LLC 3,638 4 4,850 2.05 % 13 Total/Weighted Average $ 66,639 $ 101 $ 102,358 2.50 % 8 As of December 31, 2015 Weighted Average Counterparty Amount Outstanding Accrued Interest Collateral Pledged (*) Interest Rate Days to Maturity JP Morgan Securities LLC $ 86,898 $ 108 $ 130,618 2.03 % 8 Citigroup Global Markets, Inc. 26,619 71 35,528 2.00 % 45 Wells Fargo Securities, LLC 3,694 3 4,925 1.67 % 13 Total/Weighted Average $ 117,211 $ 182 $ 171,071 2.01 % 17 ________________________ * Includes $53.3 million and $56.0 million Tranche C of Company issued CLO held by the Company, which eliminates within the Real estate securities, at fair value line of the consolidated balance sheets as of December 31, 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 Benefit Street Partners Realty Operating Partnership, L.P. (“RFT OP”), as advancing agent, U.S. Bank National Association as note administrator and U.S. Bank National Association as trustee, which governs the issuance of approximately $ 350.2 million principal balance secured floating rate notes (the “Notes”). In addition, concurrently with the issuance of the Notes, the Issuer also issued 78,188,494 Preferred Shares, par value of $0.001 per share and with an aggregate liquidation preference and notional amount equal to $1,000 per share (the “Preferred Shares”), which were not offered as part of closing the indenture. For U.S. federal income tax purposes, the Issuer and Co-Issuer are disregarded entities. As of December 31, 2016 and 2015, the Notes are collateralized by interests in a pool of 27 and 28 mortgage assets having a total principal balance of $419.3 million and $428.4 million , respectively, (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 Notes. 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 as well as the related interest are eliminated in the Company's consolidated financial statements. The Company, as the holder of preferred equity in the Issuer, will absorb the first losses of the collateralized loan obligation, as such may have negative impact to our result of operations. The issuance of the CLO also results in 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) As of December 31, 2016 Par Value Issued Par Value Outstanding (*) Interest Rate Maturity Date Tranche A $ 231,345 $ 222,195 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 $ 285,036 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 $56.0 million and $56.0 million of Tranche C of Company issued CLO held by the Company, which eliminates within the collateralized loan obligation line of the consolidated balance sheets as of December 31, 2016 and December 31, 2015 , respectively. The below table reflects the total assets and liabilities of the Company's only CLO. The CLO is considered a VIE and is consolidated into our consolidated financial statements as of December 31, 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) December 31, 2016 December 31, 2015 Cash $ 5 $ 5 Commercial mortgage loans, held for investment, net of allowance of $1,017 and $422 (1) 417,057 425,733 Accrued interest receivable 1,101 1,048 Total Assets $ 418,163 $ 426,786 Liabilities Notes payable (2)(3) $ 334,246 $ 342,998 Interest payable 564 513 Total Liabilities $ 334,810 $ 343,511 ________________________ (1) The balance is presented net of allowance for loan loss of $1.0 million and $0.4 million as of December 31, 2016 and December 31, 2015, respectively. The commercial mortgage loans balance as of December 31, 2015 of $426.2 million as disclosed in Note 5 to the consolidated financial statements included in the 2015 Form 10-K was not net of allowance for loan loss of $0.4 million . (2) Includes $55.8 million and $55.8 million of Tranche C of Company issued CLO held by the Company, which eliminates within the Collateral loan obligations line of the consolidated balance sheets as of December 31, 2016 and December 31, 2015 , respectively. (3) The balance is presented net of deferred financing cost and discount of $6.8 million and $7.2 million as of December 31, 2016 and December 31, 2015 , respectively. The notes payable balance as of December 31, 2015 of $348.3 million 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 $5.3 million . |
Net Income Per Share
Net Income Per Share | 12 Months Ended |
Dec. 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 years ended December 31, 2016 , 2015 and 2014 , respectively: Years Ended December 31, 2016 2015 2014 Net income (in thousands) $ 29,990 $ 24,933 $ 5,415 Basic weighted average shares outstanding 31,659,274 24,253,905 7,227,169 Unvested restricted shares 7,230 5,264 5,390 Diluted weighted average shares outstanding 31,666,504 24,259,169 7,232,559 Basic net income per share $ 0.95 $ 1.03 $ 0.75 Diluted net income per share $ 0.95 $ 1.03 $ 0.75 |
Common Stock
Common Stock | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Common Stock | Common Stock As of December 31, 2016 and 2015 , the Company had 31,884,631 and 31,385,280 shares of common stock outstanding, respectively, including shares issued pursuant to the DRIP, share repurchases and unvested restricted shares. 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 automatically converted to shares of common stock upon the first occurrence of series of triggering events with payouts dependent on the achievement of certain stockholder total return thresholds. Subsequent to September 30, 2016, the Company determined that as a result of the termination of the advisory agreement between the Former Advisor and the Company a triggering event had occurred. Based on the Company’s determination of the enterprise value of the Company on the date of the triggering event, the total distributions paid to the Company’s stockholders through the date of the triggering event, and the sum of the Company's stockholders’ invested capital as of the date of the triggering event, that the convertible shares converted into a number of common shares equal to zero . As a result, the convertible shares that were issued to the Former Advisor have been extinguished and no common shares were issued in connection with the conversion and the par value of the shares was transferred to Additional Paid-In Capital upon extinguishment. 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 U.S. federal income taxes. On May 13, 2013, the Company's board of directors authorized, and the Company declared a distribution, which is calculated based on stockholders of record each day during the applicable period at a rate of $ 0.00565068493 per day, 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. On November 10, 2016 the Company’s board of directors changed the DRIP offer price to $20.05 , which is equal to the estimated per-share NAV as of September 30, 2016 approved by the board of directors. The price change will apply to the reinvestment of distributions commencing with October 2016 distributions. 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 $65.3 million during the year ended December 31, 2016, comprised of $40.3 million in cash and $25.0 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'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 10, 2016 based on the Company's net asset value as of September 30, 2016 and was equal to $ 20.05 . 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 December 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 - March 31, 2016 — — — April 1 - June 30, 2016 668 536,240 24.08 July 1 - September 30, 2016 4 3,542 25.27 September 30 - December 31, 2016 (1)(2) 12 (2,573) 23.57 Cumulative as of December 31, 2016 985 918,683 $ 23.94 _______________________ (1) Number of shares reported for the time period from September 30 to December 31, 2016 represents cancellation of redemptions that were previously requested in prior periods. (2) Amounts exclude 483 redemption requests, representing 473,807 shares, received during the semi-annual period from July 1, 2016 to December 31, 2016, which were approved by the Board and repurchased in January 2017. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Unfunded Commitments Under Commercial Mortgage Loans As of December 31, 2016 and 2015 , the Company had the below unfunded commitments to the Company's borrowers. Funding Expiration December 31, 2016 December 31, 2015 2016 $ — $ 890 2017 7,794 16,072 2018 62,368 104,428 2019 9,072 16,939 $ 79,234 $ 138,329 Litigation and Regulatory Matters In the ordinary course of business, the Company may become subject to litigation, claims and regulatory matters. Except as noted below, the Company has no knowledge of material legal or regulatory proceedings pending or known to be contemplated against the Company at this time. On June 6, 2016, an action was filed against the Company and two of its directors in the United States District Court for the Southern District of New York and styled Rurode v. Realty Finance Trust, Inc., et. al., No. 1:16-cv-04553. The plaintiff’s individual and derivative complaint alleged that the Company made material misstatements in the proxy statement for its 2016 annual stockholder’s meeting related to an alleged planned merger transaction between the Company and an affiliate of its Former Advisor. The plaintiff alleged violations of Section 14(a) of the Securities Exchange Act of 1934 and sought to enjoin the Company’s 2016 annual meeting of stockholders. On June 28, 2016, the parties filed, and the court subsequently entered, a stipulation and order of dismissal of the action, but provided that the court would retain jurisdiction to consider any application by plaintiff for an award of attorneys’ fees. On October 20, 2016, the plaintiff submitted a request for $0.75 million in fees and expenses. On November 14, 2016, the Defendants filed a memorandum of law in opposition to that fee request. No hearing date has been set on plaintiff’s request for fees. The Company did not record any accrual in the year ended December 31, 2016 consolidated financial statements related to the plaintiff's fee and expense request as the Company does not believe it is probable there will be a judgment against the Company that will have a material effect on the Company's consolidated financial statements. The Company estimates the range of possible loss to be between $0 and $750,000 . |
Related Party Transactions and
Related Party Transactions and Arrangements | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions and Arrangements | Related Party Transactions and Arrangements The Company entered into the Advisory Agreement with the Advisor on September 29, 2016. 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; provided, however, that if and when the aggregate purchase price for all investments acquired after the date of the Advisory Agreement reaches $600,000,000 , the Company’s obligation to pay acquisition fees to the Advisor shall terminate. The Company reimburses the Advisor for insourced 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. The Company pays the Advisor, or its affiliates, a monthly asset management fee equal to one-twelfth of 1.5% of stockholder’s equity as calculated pursuant to the Advisory Agreement. 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. The Company will reimburse the Advisor for expenses incurred related to administrative services such as accounting, legal and other services in accordance with the advisory agreement. Except as noted below, the Company did not make any payments to the Advisor prior to entering the Advisory Agreement. Until September 29, 2016, the Former Advisor served as the Company’s advisor and the Company paid the Former Advisor certain fees and expense reimbursements pursuant to its advisory agreement with the Former Advisor. The Company also engaged in transactions with affiliates of the Former Advisor and AR Global. Until January 2016, the Company had been engaged in a public offering of its common shares, which was registered with the SEC (the “Offering”). The Former Dealer Manager served as the dealer manager of the 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. Fees Paid to Affiliates of AR Global in Connection with the Offering Prior to the termination of the Offering, the Former Dealer Manager received fees and compensation in connection with the sale of the Company’s common stock in the Offering. The Former Dealer Manager received a selling commission of up to 7.0% of the per share purchase price of the Company's offering proceeds before reallowance of commissions earned by soliciting dealers. In addition, the Former Dealer Manager received up to 3.0% of the gross proceeds from the sale of shares, before reallowance to soliciting dealers, as a dealer manager fee. The Former Dealer Manager was permitted to reallow its dealer manager fee to such soliciting dealers. A soliciting dealer was permitted to elect to receive a fee equal to 7.5% of the gross proceeds from the sale of shares (not including selling commissions and dealer manager fees) by such soliciting dealer, with 2.5% thereof paid at the time of such sale and 1.0% thereof paid on each anniversary of the closing of such sale up to and including the fifth anniversary of the closing of such sale. If this option was elected, the dealer manager fee was reduced to 2.5% of gross proceeds (not including selling commissions and Former Dealer Manager fees). The predecessor to AR Global was a party to a services agreement with RCS Advisory Services, LLC, (“RCS Advisory”) a subsidiary of the parent company of the Former Dealer Manager, 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, (“ANST”) a subsidiary of the parent company of the Former Dealer Manager, 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 Former Advisor, its affiliates, entities under common control with the Former Advisor and the Former Dealer Manager incurred for services relating to the Offering during the years ended December 31, 2016 , 2015 and 2014 , respectively, and the associated payable as of December 31, 2016 and 2015 , respectively (in thousands): Years Ended December 31, Payable as of December 31, 2016 2015 2014 2016 2015 Total commissions and fees incurred from the Former Dealer Manager $ — $ 37,092 $ 33,190 $ — $ — Total compensation and reimbursement for services provided by the Former Advisor, its affiliates, entities under common control with the Former Advisor and the Former Dealer Manager (1) $ — $ 7,442 $ 2,627 $ 480 $ 480 ________________________ (1) During 2016, the Company received reimbursement of excess payment of $0.8 million of offering costs from the Former Advisor. The reimbursement resulted in an increase to our Additional Paid-In Capital in the consolidated balance sheets. The payables as of December 31, 2016 and 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 was responsible for organizational and offering costs from the Offering, excluding commissions and Former Dealer Manager fees, up to a maximum of 2.0% of gross proceeds from its 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 were the Former Advisor's responsibility. As of December 31, 2015 , organizational and offering costs exceeded 2.0% of cap of gross proceeds received from the Offering by $0.8 million , which has been recorded as reduction to Additional Paid-In Capital of the Company. Subsequent to December 31, 2015, these amounts were reimbursed to the Company by the Former Advisor, increasing our Additional Paid-In Capital. Fees Paid to Former Advisor, its affiliates, and the Advisor in connection with the Operations of the Company The Former Advisor received 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 reimbursed the Former Advisor for expenses incurred by the Former 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 could the total of all acquisition fees and acquisition expenses exceed 4.5% of the principal amount funded with respect to the Company's total portfolio including subsequent fundings to investments in the Company's portfolio. During the years ended December 31, 2016 , 2015 and 2014 , acquisition fees of $0.8 million , $7.9 million and $4.4 million, respectively, have been recognized in Acquisition fees line within the consolidated statement of operations. In addition, over the same periods, the Company capitalized $0.0 million , $4.4 million and $2.2 million , respectively, of acquisition expenses in Commercial mortgage loans line within the Company's consolidated balance sheets, which will be amortized over the life of each investment using the effective interest method. The Company did not capitalize any acquisitions expenses for the year ended December 31, 2016. The Company paid the Former Advisor, or its affiliates, a monthly asset management fee equal to one-twelfth of 0.75% of the cost of the Company's assets. The asset management fee was based on the lower of the cost of the Company's assets and the fair value of the Company's assets (fair value consist of the market value of each portfolio investment as determined by the Former Advisor in accordance with the Company's valuation guidelines). The Company pays the Advisor, or its affiliates, a monthly asset management fee equal to one-twelfth of 1.5% of stockholder's equity as calculated pursuant to the Advisory Agreement. During the year ended December 31, 2016 and 2015 , the Company incurred $9.5 million and $4.6 million in asset management fees, respectively. Of the total asset management fees, $7.1 million is attributable to the Former Advisor and $2.4 million is attributable to the Advisor, while the amount payable to the Advisor as of December 31, 2016 is $2.4 million and the amount payable to the Former Advisor as of December 31, 2015 was $3.8 million . These asset management fees are recorded in Asset management and subordinated performance fee within the consolidated statements of operations. No management fees were incurred during the year ended December 31, 2014 . Prior to June 17, 2015, the amount of the asset management fee was reduced to the extent that funds from operations ("FFO") as defined by the National Association of Real Estate Investment Trusts, 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 paid the Former 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 Former 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 Former Advisor exceed 10.0% of the aggregate total return for such year. This fee will be payable only upon the sale of assets, distributions or other event which results in the Company's return on stockholders’ capital exceeding 6.0% per annum. The Company did not incur an annual subordinated performance fee during the year ended December 31, 2016 . In the June 30, 2016 Form 10-Q filed with the SEC on August 11, 2016 the Company recorded an annual subordinated performance fee of $1.3 million for the six months ended June 30, 2016. This amount has been reversed as the Company determined that as of the date when the advisory agreement with the Former Advisor was terminated, the conditions necessary for payment of the annual subordinated performance fee for 2016 had not been satisfied. During the years ended December 31, 2015 and December 31, 2014 , the Company incurred an annual subordinated performance fee of $3.0 million and $0.6 million, respectively, which is recorded within Asset management and subordinated performance fee within the consolidated statements of operations. Effective June 1, 2013, the Company entered into an agreement with the Former Dealer Manager to provide strategic advisory services and investment banking services required in the ordinary course of the Company's business, such as performing financial analysis, evaluating publicly traded comparable companies and assisting in developing a portfolio composition strategy, a capitalization structure to optimize future liquidity options and structuring operations. The Company prepaid the cost of $0.9 million associated with this agreement and amortized the cost over the estimated life of the Offering into "Other expense" on the Company's consolidated statements of operations. The unamortized cost of less than $0.1 million associated with this agreement is included in "Prepaid expenses and other assets" on the Company's consolidated balance sheets as of December 31, 2015 and 2014. There was no remaining unamortized cost as of December 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 years ended December 31, 2016 , 2015 and 2014 and the associated payable as of December 31, 2016 and 2015 (in thousands): Years Ended December 31, Payable as of December 31, 2016 2015 2014 2016 2015 Acquisition fees and acquisition expenses (1) $ 806 $ 12,286 $ 6,578 $ — $ 20 Administrative services expenses (2) 4,376 644 — 1,000 — Advisory and investment banking fee 6 56 542 — — Asset management and subordinated performance fee 9,504 7,615 604 2,439 3,792 Other related party expenses 84 364 — 145 35 Total related party fees and reimbursements $ 14,776 $ 20,965 $ 7,724 $ 3,584 $ 3,847 ________________________ (1) Includes capitalized acquisition fees and expenses. (2) During the years ended December 31, 2015 and December 31, 2014, the Company previously disclosed Administrative services expenses within the Acquisition fees and acquisition expenses line of this table. For the period ended December 31, 2016 the amounts are presented separately and the change was applied retrospectively. The payables as of December 31, 2016 and 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 Former Advisor was able to elect to waive certain fees. Because the Advisor and Former Advisor could 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 Former Advisor. The Former Advisor permanently waived a portion of the acquisition fees and expenses earned on the acquisition of the Company's CMBS in the amount of $0.8 million and $0.6 million for the years ended December 31, 2015 and December 31, 2014 , respectively. The Company did not purchase any CMBS positions during the year ended December 31, 2016 , as such, it did not incur any acquisition fees and expenses for CMBS purchases. Subject to the limitations outlined below, the Company reimbursed the Former 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 did not reimburse the Former Advisor for personnel costs in connection with services for which the Former Advisor received acquisition fees or disposition fees. For the year ended December 31, 2016 , the Company incurred administrative costs in connection with the operations of the Company, which is included in "Administrative services expenses" in the consolidated statements of operations. For the year ended December 31, 2016 , and 2015, $4.4 million and $0.6 million was incurred in connection with the operations of the Company, respectively. The Company did no t have any reimbursements for year ended December 31, 2014 . The Former Advisor was required to 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. For the years ended December 31, 2016 , 2015 and 2014, the Company did not exceed the greater of the two aforementioned criteria. Fees Paid to the Former Advisor in Connection with the Listing of the Company's Common Stock or Termination of the Advisory Agreement During the years ended December 31, 2016, 2015, and 2014, no fees were paid in connection with the liquidation of assets, listing of the Company's common stock or termination of the advisory agreement. Share Ownership As of December 31, 2016 and December 31, 2015, entities wholly-owned by AR Global owned 52,771 and 8,888 shares of the Company’s outstanding common stock, respectively. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | Share-Based Compensation Restricted Share Plan The Company has an employee and director incentive restricted share plan (the "RSP"), which provides the Company with the ability to grant awards of restricted shares to the Company’s directors, officers and employees (if the Company ever has employees), employees of the Advisor and its affiliates, employees of entities that provide services to the Company, directors of the Advisor or of entities that provide services to the Company or certain consultants to the Company, the Advisor and its affiliates. The total number of common shares granted under the RSP shall not exceed 5.0% of the Company’s authorized common shares pursuant to the Offering, and in any event, will not exceed 4.0 million shares (as such number may be adjusted for stock splits, stock distributions, combinations and similar events). Restricted share awards entitle the recipient to receive common shares from the Company under terms that provide for vesting over a specified period of time or upon attainment of pre-established performance objectives. Such awards would typically be forfeited with respect to the unvested shares upon the termination of the recipient’s employment or other relationship with the Company. Restricted shares may not, in general, be sold or otherwise transferred until restrictions are removed and the shares have vested. Holders of restricted shares may receive cash distributions prior to the time that the restrictions on the restricted shares have lapsed. Any distributions payable in common shares shall be subject to the same restrictions as the underlying restricted shares. The fair value of the restricted share awards are expensed over the vesting period. As of December 31, 2016 , the Company had granted 15,414 restricted shares to its independent directors, of which 2,399 were forfeited and 2,933 have vested, leaving a balance of 10,082 unvested restricted shares. As of December 31, 2015 , the Company had granted 10,666 restricted shares to its independent directors, of which 2,399 were forfeited and 1,867 have vested, leaving a balance of 6,400 unvested restricted shares. Based on a share price of $20.05 , the compensation expense associated with the restricted share grants was $ 44,324 , $29,588 and $27,281 , for the years ended December 31, 2016 , 2015 and 2014 , respectively and are included within Other expenses line on the consolidated statements of operations. Other Share-Based Compensation The Company may issue common stock in lieu of cash to pay fees earned by the Company's directors at each director's election. There are no restrictions on the shares issued since these payments in lieu of cash relate to fees earned for services performed. During the year ended December 31, 2014 , 39 shares were issued to one of the Company's independent directors for services performed and compensation expense of $876 was incurred. The Company did not issue any common stock in lieu of cash to pay fees earned by the Company's directors for the years ended December 31, 2016 and 2015 . |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 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 - Unobservable inputs that reflect the entity's own assumptions about the assumptions that market participants would use in the pricing of the asset or liability and are consequently not based on market activity, but rather through particular valuation techniques. 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. Financial Instruments Measured at Fair Value on a Recurring Basis 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. 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. During the quarter ended December 31, 2016 the Company's CMBS investments were transferred from Level II to Level III due to a decrease in the observable relevant market data because of the limited availability of the broker quotes and because the Company uses non-binding broker quotes without adjustment and therefore the fair value of the CMBS investments were classified as Level III. Valuation for this asset class was based on information from brokers. As of 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 instruments carried at fair value on a recurring basis in the consolidated balance sheets by its level in the fair value hierarchy as of December 31, 2016 and 2015 (in thousands): Total Level I Level II Level III December 31, 2016 Real estate securities $ 49,049 $ — $ — $ 49,049 December 31, 2015 Real estate securities 130,754 — 130,754 — During the quarter ended December 31, 2016 the Company transferred certain financial instruments classified from Level II to Level III. The changes in the Company's financial instruments classified as Level III are as follows (in thousands) (there were no transfers in December 31, 2015 ): Real Estate Securities December 31, 2015 balance $ — Transfers into Level III 57,639 Total realized and unrealized gains (losses) included in earnings: Realized loss on sale of real estate securities (874 ) Impairment losses on real estate securities (310 ) Net accretion — Unrealized gains (losses) included in OCI (1) 1,719 Purchases — Sales (9,125 ) Cash repayments/receipts — Transfers out of Level III — December 31, 2016 balance (2) $ 49,049 ________________________ (1) - Unrealized gains included in Other comprehensive income ("OCI") are attributable to assets still held at December 31, 2016. (2) - Subsequent to December 31, 2016, the Company sold 4 CMBS securities at a price at or close to par. Financial Instruments Measured at Fair Value on a Non-Recurring Basis The following table presents the Company's financial instruments carried at fair value on a non-recurring basis in the consolidated balance sheets by its level in the fair value hierarchy as of December 31, 2016 (in thousands): Total Level I Level II Level III December 31, 2016 (*) Commercial mortgage loans, held-for-sale, measured at fair value $ 21,179 $ — $ — $ 21,179 ________________________ * As of December 31, 2016, the Company's portfolio of commercial real estate loans held-for-sale were carried at the lower of cost or market value. The fair value of certain held-for-sale loans were adjusted to reflect fair value of the assets based on the sales price received from a potential buyer. 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 are no financial instruments carried at fair value on a non-recurring basis as of 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 and their carrying value approximates their fair value. The fair value of borrowings under repurchase agreements approximate their carrying value on the consolidated balance sheets due to their short-term nature, and are measured using Level II inputs. Financial Instruments Not Measured at Fair Value The fair values of the Company's commercial mortgage loans and collateralized loan obligations, which are not reported at fair value on the consolidated balance sheets are reported below as of December 31, 2016 and 2015 (in thousands): Level Carrying Amount Fair Value December 31, 2016 Commercial mortgage loans (1) Asset III $ 1,048,737 $ 1,029,756 Collateralized loan obligation Liability II 278,450 282,001 December 31, 2015 Commercial mortgage loans (1) Asset III $ 1,125,089 $ 1,138,841 Collateralized loan obligation Liability II 287,229 289,733 (1) The carrying value is gross of $2.2 million and $0.9 million of allowance for loan losses as of December 31, 2016 and December 31, 2015 , respectively. 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 | 12 Months Ended |
Dec. 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 December 31, 2016 and 2015 (in thousands): Gross Amounts Not Offset on the Balance Sheet Repurchase Agreements Gross Amounts of Recognized Liabilities Gross Amounts Offset on the Balance Sheet Net Amount of Liabilities Presented on the Balance Sheet Financial Instruments Cash Collateral Pledged Net Amount December 31, 2016 Commercial mortgage loans $ 257,664 $ — $ 257,664 $ 399,914 $ 5,000 $ — Real estate securities (*) 66,639 — 66,639 102,358 21 — 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 $53.3 million and $56.0 million of Tranche C of Company issued CLO held by the Company, which eliminates within the real estate securities, at fair value line of the consolidated balance sheets as of December 31, 2016 and December 31, 2015 , respectively . |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 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 years ended December 31, 2016 , 2015 and 2014 (in thousands): December 31, 2016 Total Real Estate Debt Real Estate Securities Interest income $ 79,404 $ 73,884 $ 5,520 Interest expense 23,169 20,719 2,450 Realized loss on sale of real estate securities 1,906 — 1,906 Net income 29,990 29,797 193 Total assets 1,248,125 1,198,806 49,319 December 31, 2015 Interest income 59,393 56,040 3,353 Interest expense 12,268 11,149 1,119 Net income 24,933 24,401 532 Total assets $ 1,282,484 $ 1,150,858 $ 131,626 December 31, 2014 Interest income 15,466 14,733 733 Interest expense 2,196 1,985 211 Realized gain on sale of commercial mortgage loan 112 112 — Net income 5,415 5,209 206 Total assets $ 514,220 $ 463,526 $ 50,694 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. |
Economic Dependency
Economic Dependency | 12 Months Ended |
Dec. 31, 2016 | |
Economic Dependency [Abstract] | |
Economic Dependency | Economic Dependency Under various agreements, the Company has engaged or will engage the Advisor, its affiliates and entities under common control with the Advisor to provide certain services that are essential to the Company, including asset management services, supervision of the management and leasing of properties owned by the Company, asset acquisition and disposition decisions, the sale of shares of the Company's common stock available for issue, transfer agency services, as well as other administrative responsibilities for the Company including accounting services, transaction management services and investor relations. As a result of these relationships, the Company is dependent upon the Advisor and its affiliates. In the event that these companies are unable to provide the Company with the respective services, the Company will be required to find alternative providers of these services. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events The Company has evaluated subsequent events through the filing of this Annual Report on Form 10-K and determined that there have not been any events that have occurred that would require adjustments to disclosures in the consolidated financial statements except for the following transactions: Distributions Paid On January 3, 2017 , the Company paid a distribution of $5.6 million to stockholders of record during the month of December 2016 . Approximately $3.6 million of the distribution was paid in cash, while $2.0 million was used to purchase 100,118 shares for those stockholders that chose to reinvest distributions through the DRIP. Charter Amendment Effective on January 30, 2017, the Company amended its charter to change its name to Benefit Street Partners Realty Trust, Inc. The name change was effected pursuant to an amendment to the charter of the Company (the “Charter Amendment”). The Charter Amendment was unanimously approved by the Board of Directors of the Company and was made without action by the stockholders of the Company pursuant to Section 2-605(a)(1) of the Maryland General Corporation Law. Share Repurchase Program As permitted under the SRP, in January 2017, our board of directors approved, with respect to redemption requests received during the semi-annual period from July 1, 2016 to December 31, 2016, the repurchase of shares validly submitted for repurchase in an amount such that the aggregate amount of shares repurchased pursuant to redemption requests received for the semi-annual period ended December 31, 2016 did not exceed 2.5% of the weighted average number of shares of common stock outstanding during the previous fiscal year. Accordingly, 473,807 shares at an average per share of $19.03 (including all shares submitted for death and disability) were approved for repurchase and completed in January 2017. |
Schedule IV - Mortgage Loans o
Schedule IV - Mortgage Loans on Real Estate | 12 Months Ended |
Dec. 31, 2016 | |
Mortgage Loans on Real Estate [Abstract] | |
Schedule IV - Mortgage Loans on Real Estate | SCHEDULE IV - MORTGAGE LOANS ON REAL ESTATE December 31, 2016 (In thousands) Face Carrying Interest Payment Maturity Description Property Type Amount Amount Rate Terms Date Senior 1 Retail $ 7,460 $ 7,448 1M LIBOR + 4.75% Interest Only 10/9/2017 Senior 2 Office 8,676 8,637 1M LIBOR + 4.65% Interest Only 6/9/2018 Senior 3 Office 38,750 38,560 1M LIBOR + 5.25% Interest Only 12/9/2018 Senior 4 Office 13,442 13,404 1M LIBOR + 4.75% Interest Only 3/9/2019 Senior 5 Retail 14,600 14,563 1M LIBOR + 4.25% Interest Only 5/9/2018 Senior 6 Office 19,979 19,952 1M LIBOR + 4.55% Interest Only 12/9/2018 Senior 7 Multifamily 17,959 17,892 1M LIBOR + 4.75% Interest Only 6/9/2018 Senior 8 Multifamily 14,730 14,680 1M LIBOR + 4.50% Interest Only 5/9/2018 Senior 9 Office 12,000 11,975 1M LIBOR + 4.75% Interest Only 11/9/2019 Senior 10 Multifamily 23,784 23,732 1M LIBOR + 4.25% Interest Only 11/9/2018 Senior 11 Multifamily 9,130 9,097 1M LIBOR + 4.75% Interest Only 5/9/2018 Senior 12 Retail 9,850 9,822 1M LIBOR + 5.25% Interest Only 3/9/2018 Senior 13 Industrial 19,033 18,973 1M LIBOR + 4.25% Interest Only 7/9/2018 Senior 14 Hospitality 10,350 10,307 1M LIBOR + 5.50% Interest Only 7/9/2018 Senior 15 Office 33,734 33,645 1M LIBOR + 4.65% Interest Only 11/9/2017 Senior 16 Retail 4,725 4,698 1M LIBOR + 5.50% Interest Only 8/9/2018 Senior 17 Retail 25,247 25,144 1M LIBOR + 4.75% Interest Only 6/9/2018 Senior 18 Multifamily 43,083 42,985 1M LIBOR + 4.00% Interest Only 11/9/2018 Senior 19 Retail 7,500 7,459 1M LIBOR + 5.00% Interest Only 7/9/2018 Senior 20 Office 13,389 13,350 1M LIBOR + 5.00% Interest Only 1/9/2018 Senior 21 Hospitality 11,482 11,468 1M LIBOR + 5.75% Interest Only 10/9/2017 Senior 22 Hospitality 14,625 14,584 1M LIBOR + 5.30% Interest Only 7/9/2018 Senior 23 Hospitality 14,193 14,092 1M LIBOR + 5.50% Interest Only 9/9/2019 Senior 24 Multifamily 18,941 18,897 1M LIBOR + 4.20% Interest Only 7/9/2018 Senior 25 Mixed Use 10,901 10,874 1M LIBOR + 5.10% Interest Only 1/9/2018 Senior 26 Multifamily 42,943 42,768 1M LIBOR + 4.25% Interest Only 8/9/2018 Senior 27 Retail 9,450 9,438 1M LIBOR + 4.90% Interest Only 9/9/2017 Senior 28 Industrial 33,655 33,635 1M LIBOR + 4.00% Interest Only 11/9/2018 Senior 29 Mixed Use 45,235 45,071 1M LIBOR + 5.50% Interest Only 7/9/2018 Senior 30 Multifamily 8,850 8,828 1M LIBOR + 4.70% Interest Only 2/9/2018 Senior 31 Office 27,413 27,305 1M LIBOR + 4.60% Interest Only 2/9/2019 Senior 32 Multifamily 8,016 7,996 1M LIBOR + 4.75% Interest Only 2/9/2018 Senior 33 Hospitality 16,800 16,773 1M LIBOR + 4.90% Interest Only 4/9/2018 Senior 34 Office 35,000 34,951 1M LIBOR + 5.00% Interest Only 11/9/2018 Senior 35 Office 6,290 6,287 1M LIBOR + 4.90% Interest Only 8/9/2017 Senior 36 Retail 11,800 11,780 1M LIBOR + 4.75% Interest Only 11/9/2017 Senior 37 Retail 13,500 13,491 1M LIBOR + 5.00% Interest Only 4/9/2017 Senior 38 Retail 11,684 11,646 1M LIBOR + 4.50% Interest Only 2/9/2019 Senior 39 Multifamily 18,075 18,033 1M LIBOR + 4.50% Interest Only 12/9/2018 Senior 40 Office 31,250 31,206 1M LIBOR + 4.50% Interest Only 9/9/2017 Senior 41 Multifamily 26,195 26,109 1M LIBOR + 4.25% Interest Only 5/9/2018 Senior 42 Multifamily 29,940 29,970 1M LIBOR + 3.85% Interest Only 11/9/2018 Senior 43 Multifamily 10,920 10,930 1M LIBOR + 3.95% Interest Only 11/9/2018 Senior 44 Multifamily 13,120 13,133 1M LIBOR + 3.95% Interest Only 11/9/2018 Senior 45 Multifamily 5,894 5,899 1M LIBOR + 4.05% Interest Only 11/9/2018 Senior 46 Office 28,489 28,435 1M LIBOR + 4.25% Interest Only 1/9/2019 Senior 47 Multifamily 14,336 14,303 1M LIBOR + 5.00% Interest Only 2/9/2018 Senior 48 Retail 26,905 26,889 1M LIBOR + 4.75% Interest Only 6/9/2018 Senior 49 Multifamily 10,807 10,793 1M LIBOR + 4.75% Interest Only 4/9/2018 Mezzanine 1 Office 5,000 5,060 11.0% Interest Only 1/6/2024 Mezzanine 2 (2) Hospitality 3,000 2,970 11.0% Interest Only 8/1/2018 Mezzanine 3 Hospitality 11,000 11,000 1M LIBOR + 7.05% Interest Only 3/9/2017 Mezzanine 4 (1) Office 16,447 16,447 1M LIBOR + 7.25% Interest Only 8/9/2017 Mezzanine 5 (1) Office 7,000 7,019 12.0% Interest Only 5/1/2019 Mezzanine 6 (1) Hospitality 12,000 12,000 1M LIBOR + 9.00% Interest Only 9/9/2017 Mezzanine 7 (1) Retail 1,963 1,971 13.0% Interest Only 6/1/2024 Mezzanine 8 (1) Office 5,085 5,085 3M LIBOR + 10.00% Interest Only 10/31/2017 Mezzanine 9 (1) Multifamily 5,000 5,021 9.0% Interest Only 9/1/2018 Mezzanine 10 (1) Multifamily 3,480 3,494 9.5% Interest Only 7/1/2024 Mezzanine 11 (1) Office 10,000 10,000 1M LIBOR + 8.00% Interest Only 5/9/2017 Mezzanine 12 (1) Multifamily 4,000 4,049 12.0% Interest Only 1/6/2024 Mezzanine 13 (1) Office 10,000 9,528 10.0% Interest Only 9/6/2024 Mezzanine 14 (1)(2) Office 10,000 9,388 1M LIBOR + 10.75% Interest Only 7/10/2018 Mezzanine 15 (1) Hospitality 7,140 6,584 10.0% Interest Only 11/1/2024 Mezzanine 16 (1) Hospitality 3,900 3,596 10.0% Interest Only 11/1/2024 Mezzanine 17 (1) Hospitality 12,510 11,536 10.0% Interest Only 11/1/2024 Mezzanine 18 (1) Hospitality 8,050 7,423 10.0% Interest Only 11/1/2024 Mezzanine 19 (1)(2) Office 9,000 8,821 10.5% Interest Only 10/6/2019 Mezzanine 20 (1) Hospitality 6,182 4,667 5.5% Interest Only 5/6/2023 Mezzanine 21 (1) Hospitality 12,350 12,350 1M LIBOR + 10.00% Interest Only 7/9/2017 Subordinate 1 (1) Retail 10,000 10,000 11.0% Interest Only 4/1/2024 $ 1,077,237 $ 1,069,916 ________________ (1) Subject to prior liens. (2) Reported as loan held-for-sale in the Company's consolidated balance sheet. |
Summary of Significant Accoun24
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Basis of Accounting | Basis of Accounting The accompanying consolidated financial statements and related footnotes have been prepared on the accrual basis of accounting in conformity with accounting principles generally accepted in the United States of America ("GAAP") and pursuant to the requirements for reporting on Form 10-K and Regulation S-X, as appropriate. 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 annual 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 reporting period. The consolidated financial statements of the Company are prepared on an accrual basis of accounting. |
Principles of Consolidation and Basis of Presentation | Principles of Consolidation and Basis of Presentation The accompanying consolidated financial statements include the accounts of the Company, the OP and its subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. In determining whether the Company has a controlling financial interest in a joint venture and the requirement to consolidate the accounts of that entity, management considers factors such as ownership interest, authority to make decisions and contractual and substantive participating rights of the other partners or members as well as whether the entity is a variable interest entity for which the Company is the primary beneficiary. The Company consolidates all entities that the Company controls through either majority ownership or voting rights. In addition, the Company consolidates all variable interest entities ("VIE") of which the Company is considered 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 consolidated balance sheet in accordance with ASC 810 - Consolidation. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Management makes significant estimates regarding classification of investments, fair value measurements, credit losses and impairments of investments and derivative financial instruments and hedging activities, as applicable. |
Acquisition Fees and Acquisition Expenses | Acquisition Fees and Acquisition Expenses The Company incurs acquisition fees and acquisition expenses payable to the Advisor. The Company pays the Advisor an acquisition fee based on the principal amount funded by the Company to originate or acquire commercial mortgage loan investments or on the anticipated net equity funded by the Company to acquire real estate securities. Acquisition fees and acquisition expenses paid to the Company's Advisor in connection with the origination and acquisition of commercial mortgage loan investments and acquisition of real estate securities are evaluated based on the nature of the expense to determine if they should be expensed in the period incurred or capitalized and amortized over the life of the investment. The Company capitalizes certain direct costs relating to the loan origination activities and the cost is amortized over the life of the loan. |
Commercial Mortgage Loans | Commercial Mortgage Loans Commercial mortgage loans that are held for investment purposes and are anticipated to be held until maturity, are carried at cost, net of unamortized acquisition expenses, discounts or premiums and unfunded commitments. Commercial mortgage loans, held for investment purposes, that are deemed to be impaired will be carried at amortized cost less a specific allowance for loan losses. Interest income is recorded on the accrual basis and related discounts, premiums and acquisition expenses on investments are amortized over the life of the investment using the effective interest method. Amortization is reflected as an adjustment to interest income in the Company’s consolidated statements of operations. Guaranteed loan exit fees payable by the borrower upon maturity are accreted over the life of the investment using the effective interest method. The accretion of guaranteed loan exit fees is recognized in interest income in the Company's consolidated statements of operation. Commercial loans that are intended to be sold in the foreseeable future are reported as held-for-sale and are transferred at fair value then recorded at the lower of cost or fair value with changes recorded through the statement of operations. Unamortized loan origination costs for commercial loans held-for-sale are capitalized as part of the carrying value of the loans and recognized upon the sale of such loans. Amortization of origination costs ceases upon transfer of commercial loans to held-for-sale. 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, given the fact the Company has not experienced any losses, and takes into account current collateral and economic conditions affecting the probability and severity of losses when establishing the allowance for loan losses. The Company performs a comprehensive analysis of its loan portfolio and assigns risk ratings to loans that incorporate management's current judgments about their credit quality based on all known and relevant internal and external factors that may affect collectability. The Company considers, among other things, payment status, lien position, borrower financial resources and investment in collateral, collateral type, project economics and geographic location as well as national and regional economic factors. This methodology results in loans being segmented by risk classification into risk rating categories that are associated with estimated probabilities of default and principal loss. Ratings range from "1" to "5" with "1" representing the lowest risk of loss and "5" representing the highest risk of loss. The asset-specific reserve component relates to reserves for losses on individual impaired loans. The Company considers a loan to be impaired when, based upon current information and events, it believes that it is probable that the Company will be unable to collect all amounts due under the contractual terms of the loan agreement. This assessment is made on an individual loan basis each quarter based on such factors as payment status, lien position, borrower financial resources and investment in collateral, collateral type, project economics and geographical location as well as national and regional economic factors. A reserve is established for an impaired loan when the present value of payments expected to be received, observable market prices or the estimated fair value of the collateral (for loans that are dependent on the collateral for repayment) is lower than the carrying value of that loan. For collateral dependent impaired loans, impairment is measured using the estimated fair value of collateral less the estimated cost to sell. Valuations are performed or obtained at the time a loan is determined to be impaired and designated non-performing, and they are updated if circumstances indicate that a significant change in value has occurred. The Advisor generally will use the income approach through internally developed valuation models to estimate the fair value of the collateral for such loans. In more limited cases, the Advisor will obtain external "as is" appraisals for loan collateral, generally when third party participations exist. A loan is also considered impaired if its terms are modified in a troubled debt restructuring ("TDR"). A TDR occurs when a concession is granted and the debtor is experiencing financial difficulties. Impairments on TDR loans are generally measured based on the present value of expected future cash flows discounted at the effective interest rate of the original loans. The Company designates non-performing loans at such time as (i) loan payments become 90-days past due; (ii) the loan has a maturity default; or (iii) in the opinion of the Company, it is probable the Company will be unable to collect all amounts due according to the contractual terms of the loan. Income recognition will be suspended when a loan is designated non-performing and resumed only when the suspended loan becomes contractually current and performance is demonstrated to have resumed. A loan will be written off when it is no longer realizable and legally discharged. |
Real Estate Securities | Real Estate Securities On the acquisition date, all of the Company’s commercial real estate securities were classified as available for sale and carried at fair value, and subsequently any unrealized gains or losses are recognized as a component of accumulated other comprehensive income or loss. The Company may elect the fair value option for its real estate securities, and as a result, any unrealized gains or losses on such real estate securities will be recorded in the Company’s consolidated statement of operations. No such election has been made to date. Related discounts, premiums and acquisition expenses on investments are amortized over the life of the investment using the effective interest method. Amortization is reflected as an adjustment to interest income in the Company’s consolidated statements of operations. Impairment Analysis of Real Estate Securities Commercial real estate securities for which the fair value option has not been elected are periodically evaluated for other-than-temporary impairment. If the fair value of a security is less than its amortized cost, the security is considered impaired. Impairment of a security is considered other-than-temporary when (i) the Company has the intent to sell the impaired security; (ii) it is more likely than not the Company will be required to sell the security; or (iii) the Company does not expect to recover the entire amortized cost of the security. If the Company determines that an other-than-temporary impairment exists and a sale is likely, the impairment charge is recognized as an impairment of assets on the Company's consolidated statement of operations. If a sale is not expected, the portion of the impairment charge related to credit factors is recorded as an impairment of assets on the Company's consolidated statement of operations with the remainder recorded as an unrealized gain or loss on investments reported as a component of accumulated other comprehensive income or loss. The Company did not have any other-than-temporary impairment for the years ended December 31, 2016 and 2015 . Commercial real estate securities for which the fair value option has been elected are not evaluated for other-than-temporary impairment as changes in fair value are recorded in the Company’s consolidated statement of operations. No such election has been made to date. |
Repurchase Agreements | Share Repurchase Program The Company has a Share Repurchase Program (the "SRP"), which was amended as of February 28, 2016, that enables stockholders to sell their shares to the Company. Subject to certain conditions, stockholders that purchased shares of our common stock or received their shares from us (directly or indirectly) through one or more non-cash transactions and have held their shares for a period of at least one year may request that we repurchase their shares of common stock so long as the repurchase otherwise complies with the provisions of Maryland law. Repurchase requests made following the death or qualifying disability of a stockholder will not be subject to any minimum holding period. The repurchase price per share for requests other than for death or disability will be equal to the most-recent estimated net asset value per share of our common stock calculated by our Advisor in accordance with our valuation guidelines, or estimated per-share NAV, multiplied by a percentage equal to (i) 92.5% , if the person seeking repurchase has held his or her shares for a period greater than one year and less than two years; (ii) 95% , if the person seeking repurchase has held his or her shares for a period greater than two years and less than three years; (iii) 97.5% , if the person seeking repurchase has held his or her shares for a period greater than three years and less than four years; or (iv) 100% , if the person seeking repurchase has held his or her shares for a period greater than four years. In the case of requests for death or disability, the repurchase price per share will be equal to the estimated per-share NAV at the time of repurchase. Repurchases pursuant to the SRP, when requested, generally will be made semiannually (each six-month period ending June 30 or December 31, a “fiscal semester”). Repurchases for any fiscal semester will be limited to a maximum of 2.5% of the weighted average number of shares of common stock outstanding during the previous fiscal year, with a maximum for any fiscal year of 5.0% of the weighted average number of shares of common stock outstanding during the previous fiscal year. Funding for repurchases pursuant to the SRP for any given fiscal semester will be limited to proceeds received during that same fiscal semester through the issuance of common stock pursuant to any DRIP in effect from time to time, provided that the Board has the power, in its sole discretion, to determine the amount of shares repurchased during any fiscal semester as well as the amount of funds to be used for that purpose. Due to these limitations, we cannot guarantee that we will be able to accommodate all repurchase requests made during any fiscal semester or fiscal year. However, a stockholder may withdraw its request at any time or ask that we honor the request when funds are available. Pending repurchase requests will be honored on a pro rata basis. We will generally pay repurchase proceeds, less any applicable tax or other withholding required by law, by the 31st day following the end of the fiscal semester during which the repurchase request was made. Calculations of our estimated per-share NAV will occur periodically, at the discretion of the Board, provided that such calculations will be made at least annually. Following its calculation, our estimated per-share NAV will be disclosed in a periodic report. The most recent calculation of our estimated per-share NAV approved by the Board occurred on November 10, 2016 based on our net asset value as of September 30, 2016 and was equal to $20.05 . When a stockholder requests a redemption and the redemption is approved by the board of directors, we will reclassify such obligation from equity to a liability based on the settlement value of the obligation. Shares repurchased under the SRP will have the status of authorized but unissued shares. Repurchase Agreements Commercial mortgage loans and real estate securities sold under repurchase agreements have been treated as collateralized financing transactions because the Company maintains effective control over the transferred securities. Commercial mortgage loans and real estate securities financed through a repurchase agreement remain on the Company’s consolidated balance sheet as an asset and cash received from the purchaser is recorded as a liability. Interest paid in accordance with repurchase agreements is recorded in interest expense on the Company's consolidated statements of operations. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash represents deposits with high quality financial institutions. These deposits are guaranteed by the Federal Deposit Insurance Company up to an insurance limit. Cash equivalents include short-term, liquid investments in money market funds. |
Restricted Cash | Restricted Cash Restricted cash primarily consists of cash pledged as margin on repurchase agreements. |
Prepaid Expenses | Prepaid Expenses Prepaid expenses consists of deferred financing cost related to our various Master Repurchase Agreements as well as certain subscription cost. Deferred financing costs are amortized over the terms of the respective financing agreement using the effective interest method and included in the interest expense on the accompanying consolidated statements of operations. Unamortized deferred financing costs are generally expensed when the associated debt is refinanced or repaid before maturity. |
Share Repurchase Program | Share Repurchase Program The Company has a Share Repurchase Program (the "SRP"), which was amended as of February 28, 2016, that enables stockholders to sell their shares to the Company. Subject to certain conditions, stockholders that purchased shares of our common stock or received their shares from us (directly or indirectly) through one or more non-cash transactions and have held their shares for a period of at least one year may request that we repurchase their shares of common stock so long as the repurchase otherwise complies with the provisions of Maryland law. Repurchase requests made following the death or qualifying disability of a stockholder will not be subject to any minimum holding period. The repurchase price per share for requests other than for death or disability will be equal to the most-recent estimated net asset value per share of our common stock calculated by our Advisor in accordance with our valuation guidelines, or estimated per-share NAV, multiplied by a percentage equal to (i) 92.5% , if the person seeking repurchase has held his or her shares for a period greater than one year and less than two years; (ii) 95% , if the person seeking repurchase has held his or her shares for a period greater than two years and less than three years; (iii) 97.5% , if the person seeking repurchase has held his or her shares for a period greater than three years and less than four years; or (iv) 100% , if the person seeking repurchase has held his or her shares for a period greater than four years. In the case of requests for death or disability, the repurchase price per share will be equal to the estimated per-share NAV at the time of repurchase. Repurchases pursuant to the SRP, when requested, generally will be made semiannually (each six-month period ending June 30 or December 31, a “fiscal semester”). Repurchases for any fiscal semester will be limited to a maximum of 2.5% of the weighted average number of shares of common stock outstanding during the previous fiscal year, with a maximum for any fiscal year of 5.0% of the weighted average number of shares of common stock outstanding during the previous fiscal year. Funding for repurchases pursuant to the SRP for any given fiscal semester will be limited to proceeds received during that same fiscal semester through the issuance of common stock pursuant to any DRIP in effect from time to time, provided that the Board has the power, in its sole discretion, to determine the amount of shares repurchased during any fiscal semester as well as the amount of funds to be used for that purpose. Due to these limitations, we cannot guarantee that we will be able to accommodate all repurchase requests made during any fiscal semester or fiscal year. However, a stockholder may withdraw its request at any time or ask that we honor the request when funds are available. Pending repurchase requests will be honored on a pro rata basis. We will generally pay repurchase proceeds, less any applicable tax or other withholding required by law, by the 31st day following the end of the fiscal semester during which the repurchase request was made. Calculations of our estimated per-share NAV will occur periodically, at the discretion of the Board, provided that such calculations will be made at least annually. Following its calculation, our estimated per-share NAV will be disclosed in a periodic report. The most recent calculation of our estimated per-share NAV approved by the Board occurred on November 10, 2016 based on our net asset value as of September 30, 2016 and was equal to $20.05 . When a stockholder requests a redemption and the redemption is approved by the board of directors, we will reclassify such obligation from equity to a liability based on the settlement value of the obligation. Shares repurchased under the SRP will have the status of authorized but unissued shares. Repurchase Agreements Commercial mortgage loans and real estate securities sold under repurchase agreements have been treated as collateralized financing transactions because the Company maintains effective control over the transferred securities. Commercial mortgage loans and real estate securities financed through a repurchase agreement remain on the Company’s consolidated balance sheet as an asset and cash received from the purchaser is recorded as a liability. Interest paid in accordance with repurchase agreements is recorded in interest expense on the Company's consolidated statements of operations. |
Distribution Reinvestment Plan | Distribution Reinvestment Plan Pursuant to the DRIP, stockholders may elect to reinvest distributions by purchasing shares of common stock in lieu of receiving cash. No dealer manager fees or selling commissions are paid with respect to shares purchased pursuant to the DRIP. Participants purchasing shares pursuant to the DRIP have the same rights and are treated in the same manner as if such shares were issued pursuant to the Offering. The board of directors may designate that certain cash or other distributions be excluded from the DRIP. The Company has the right to amend any aspect of the DRIP or terminate the DRIP with ten days ’ notice to participants. Shares issued under the DRIP are recorded to equity in the consolidated balance sheet in the period distributions are declared. |
Offering and Related Costs | Offering and Related Costs Prior to the termination of the Offering, offering and related costs included all expenses incurred in connection with the Offering. Offering costs (other than selling commissions and the dealer manager fee) of the Company were paid by the Former Advisor, the Former Dealer Manager or their affiliates on behalf of the Company. Offering costs were reclassified from deferred costs to stockholders' equity on the day the Company commenced its operations. Offering costs included all expenses incurred by the Company in connection with its Offering as of the balance sheet date presented. These costs includes but were not limited to (i) legal, accounting, printing, mailing and filing fees; (ii) escrow service related fees; (iii) reimbursement of the Former Dealer Manager for amounts it paid to reimburse the bona fide diligence expenses of broker-dealers; and (iv) reimbursement to the Former Advisor for a portion of the costs of its employees and other costs in connection with preparing supplemental sales materials and related offering activities. The Company was obligated to reimburse the Former Advisor or its affiliates, as applicable, for organizational and offering costs paid by them on behalf of the Company to the extent organizational and offering costs (excluding selling commissions and the dealer manager fee) incurred by the Company in the Offering did not exceed 2% of gross offering proceeds. The Former Advisor was required to reimburse the Company to the extent that organization and offering and related costs paid by the Company exceeded 2% of gross offering proceeds. As a result, these costs were only a liability of the Company to the extent aggregate selling commissions, the dealer manager fees and other organization and offering costs did not exceed 12% of the gross Offering proceeds determined at the end of the Offering. |
Share-Based Compensation | Share-Based Compensation The Company has a share-based incentive plan for certain of the Company's directors, officers and employees of the Advisor and its affiliates. Share-based awards are measured at the grant date fair value and is recognized as compensation expense on a on a straight line basis over the related vesting period of the award. |
Income Taxes | Income Taxes The Company conducts its operations to qualify as a REIT for U.S. federal income tax purposes beginning with its tax return for the taxable year ended December 31, 2013 . As a REIT, the Company generally will not be subject to federal corporate income tax as long as it distributes at least 90% of its REIT taxable income to its stockholders and a number of other organizational and operational requirements. However, even if we qualify for taxation as a REIT, we may be subject to certain state and local taxes on our income in addition to U.S. federal income and excise taxes on our undistributed income. Income tax of $0.2 million for the year ended December 31, 2014 represents the New York City Unincorporated Business Tax. There was no income tax provision for the years ended December 31, 2016 and 2015 . The Company uses a more-likely-than-not threshold for recognition and derecognition of tax positions taken or to be taken in a tax return. The Company has assessed its tax positions for all open tax years beginning with December 31, 2013 and concluded that there were no uncertainties to be recognized. The Company’s accounting policy with respect to interest and penalties related to tax uncertainties is to classify these amounts as provision for income taxes. |
Per Share Data | Per Share Data The Company calculates basic earnings per share by dividing net income attributable to the Company for the period by the weighted-average number of shares of common stock outstanding for that period. Diluted earnings per share reflects the potential dilution that could occur from shares issuable in connection with the restricted stock plan and if convertible shares were exercised, except when doing so would be anti-dilutive. |
Reportable Segments | Reportable Segments The Company conducts its business through the following segments: • The real estate debt business which is focused on originating, acquiring and asset managing commercial real estate debt investments, including first mortgage loans, subordinate mortgages, mezzanine loans and participations in such loans. • The real estate securities business which is focused on investing in and asset managing commercial real estate securities primarily consisting of CMBS and may include unsecured REIT debt, CDO notes and other securities. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In August 2014, the FASB issued an update that requires management to assess and entity’s ability to continue as a going concern by incorporating and expanding upon certain principles that are currently in U.S. auditing standards. The amendments provide a definition of the term ‘substantial doubt’ and include principles for considering the mitigating effect of management’s plans. The amendments also require an evaluation every reporting period, including interim periods for a period of one year after the date that the financial statements are issued (or available to be issued), and certain disclosures when substantial doubt is alleviated or not alleviated. The revised guidance is effective for reporting periods ending after December 15, 2016. In 2016, the Company adopted this revised guidance which did not have any effect on the Company’s consolidated financial statements. In February 2015, the FASB amended the accounting for consolidation of certain legal entities. The amendments modify the evaluation of whether certain legal entities are variable interest entities ("VIEs") or voting interest entities, eliminate the presumption that a general partner should consolidate a limited partnership and affect the consolidation analysis of reporting entities that are involved with VIEs (particularly those that have fee arrangements and related party relationships). The revised guidance is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. Early adoption 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 has adopted the provisions of this guidance beginning January 1, 2016, electing to account for forfeitures when they occur, and determined that there is no impact to the Company’s consolidated financial position, results of operations and cash flows. In March 2016, the FASB issued guidance which requires an entity to determine whether the nature of its promise to provide goods or services to a customer is performed in a principal or agent capacity and to recognize revenue in a gross or net manner based on its principal/agent designation. This guidance is effective for public business entities for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2017. Early adoption is permitted. The Company is currently evaluating the impact of this new guidance. In June 2016, the FASB issued guidance that changes how entities measure credit losses for financial assets carried at amortized cost. The update eliminates the requirement that a credit loss must be probable before it can be recognized and instead requires an entity to recognize the current estimate of all expected credit losses. Additionally, the update requires credit losses on available-for-sale debt securities to be carried as an allowance rather than as a direct write-down of the asset. The amendments become effective for reporting periods beginning after December 15, 2019. The amendments may be adopted early for reporting periods beginning after December 15, 2018. The Company is currently evaluating the impact of this new guidance. In August 2016, the FASB issued guidance on how certain transactions should be classified and presented in the statement of cash flows as either operating, investing or financing activities. Among other things, the update provides specific guidance on where to classify debt prepayment and extinguishment costs, payments for contingent consideration made after a business combination and distributions received from equity method investments. The revised guidance is effective for reporting periods beginning after December 15, 2017. Early adoption is permitted. The Company is currently evaluating the impact of this new guidance. In October 2016, the FASB issued guidance where a reporting entity will need to evaluate if it should consolidate a VIE. The amendments change the evaluation of whether a reporting entity is the primary beneficiary of a VIE by changing how a single decision maker of a VIE treats indirect interests in the entity held through related parties that are under common control with the reporting entity. The revised guidance is effective for reporting periods beginning after December 15, 2016. Early adoption is permitted. We do not expect this guidance to have a material impact on the Company’s consolidated financial statements. In November 2016, the FASB issued guidance on the classification of restricted cash in the statement of cash flows. The amendment requires restricted cash to be included in the beginning-of-period and end-of-period total cash amounts. Therefore, transfers between cash and restricted cash will no longer be shown on the statement of cash flows. The guidance is effective for reporting periods beginning after December 15, 2017. Early adoption is permitted. We do not expect this guidance to have a material impact on the Company’s consolidated financial statements. |
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 - Unobservable inputs that reflect the entity's own assumptions about the assumptions that market participants would use in the pricing of the asset or liability and are consequently not based on market activity, but rather through particular valuation techniques. 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. Financial Instruments Measured at Fair Value on a Recurring Basis 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. 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. During the quarter ended December 31, 2016 the Company's CMBS investments were transferred from Level II to Level III due to a decrease in the observable relevant market data because of the limited availability of the broker quotes and because the Company uses non-binding broker quotes without adjustment and therefore the fair value of the CMBS investments were classified as Level III. Valuation for this asset class was based on information from brokers. As of 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. |
Commercial Mortgage Loans (Tabl
Commercial Mortgage Loans (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Receivables [Abstract] | |
Summary of Loans Receivable by Class | The following table is a summary of the Company's commercial mortgage loans, held-for-investment, carrying values by class (in thousands): December 31, 2016 December 31, 2015 Senior loans $ 901,907 $ 894,075 Mezzanine loans 136,830 221,014 Subordinated loans 10,000 10,000 Total gross carrying value of loans 1,048,737 1,125,089 Less: Allowance for loan losses 2,181 888 Total commercial mortgage loans, held-for-investment, net $ 1,046,556 $ 1,124,201 The following table presents the activity in the Company's allowance for loan losses (in thousands): Year Ended December 31, 2016 2015 Beginning of period $ 888 $ 570 Provision for loan losses 1,293 318 Charge-offs — — Recoveries — — Ending allowance for loan losses $ 2,181 $ 888 As of December 31, 2016 and 2015 , the Company's total commercial mortgage loan portfolio, including loans held-for-sale, comprised of 71 and 77 loans, respectively. December 31, 2016 December 31, 2015 Loan Type Par Value Percentage Par Value Percentage Office $ 340,944 31.6 % $ 307,876 27.2 % Multifamily 329,203 30.6 % 305,129 26.9 % Hospitality 143,582 13.3 % 171,752 15.1 % Retail 154,684 14.4 % 158,784 14.0 % Mixed Use 56,136 5.2 % 138,798 12.2 % Industrial 52,688 4.9 % 52,107 4.6 % $ 1,077,237 100.0 % $ 1,134,446 100.0 % |
Loan Portfolio Assessment and Risk Ratings | As part of the Company's process for monitoring the credit quality of its loans, it performs a quarterly loan portfolio assessment and assigns risk ratings to each of its loans. The loans are scored on a scale of 1 to 5 as follows: InvestmentRating 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 the potential of some interest loss but still expecting a positive return on investment. Trends and risk factors are negative. 5 Underperforming investment with expected loss of interest and some principal. |
Real Estate Notes Receivable Rollforward | For the year ended December 31, 2016 and 2015 , the activity in the Company's loan portfolio was as follows (in thousands): Year Ended December 31, 2016 2015 Balance at Beginning of Year $ 1,124,201 $ 456,884 Acquisitions and originations 53,640 793,731 Dispositions (44,355 ) — Principal repayments (66,490 ) (127,643 ) Discount accretion and premium amortization* 2,279 1,547 Loans transferred to commercial real estate loans, held-for-sale, at fair value (21,179 ) — Unrealized losses on loans held-for-sale (247 ) — Provision for loan losses (1,293 ) (318 ) Balance at End of Year $ 1,046,556 $ 1,124,201 ________________________ * Includes amortization of capitalized acquisition fees and expenses. |
Real Estate Securities (Tables)
Real Estate Securities (Tables) | 12 Months Ended |
Dec. 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 December 31, 2016 6 5.75 % February 2020 $ 50,000 $ 49,049 December 31, 2015 16 4.71 % February 2019 133,183 130,754 |
Available-for-Sale Securities | The following table shows the changes in fair value of the Company's CMBS investments (in thousands): Amortized Cost Unrealized Gains Unrealized Losses Fair Value December 31, 2016 $ 49,548 $ — $ (499 ) $ 49,049 December 31, 2015 133,008 — (2,254 ) 130,754 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Master Repurchase Agreements | Below is a summary of the Company's MRAs as of December 31, 2016 and 2015 (in thousands). As of December 31, 2016 Weighted Average Counterparty Amount Outstanding Accrued Interest Collateral Pledged (*) Interest Rate Days to Maturity JP Morgan Securities LLC $ 59,122 $ 96 $ 92,658 2.55 % 6 Citigroup Global Markets, Inc. 3,879 1 4,850 2.11 % 26 Wells Fargo Securities, LLC 3,638 4 4,850 2.05 % 13 Total/Weighted Average $ 66,639 $ 101 $ 102,358 2.50 % 8 As of December 31, 2015 Weighted Average Counterparty Amount Outstanding Accrued Interest Collateral Pledged (*) Interest Rate Days to Maturity JP Morgan Securities LLC $ 86,898 $ 108 $ 130,618 2.03 % 8 Citigroup Global Markets, Inc. 26,619 71 35,528 2.00 % 45 Wells Fargo Securities, LLC 3,694 3 4,925 1.67 % 13 Total/Weighted Average $ 117,211 $ 182 $ 171,071 2.01 % 17 ________________________ * Includes $53.3 million and $56.0 million Tranche C of Company issued CLO held by the Company, which eliminates within the Real estate securities, at fair value line of the consolidated balance sheets as of December 31, 2016 and December 31, 2015 , respectively. |
Schedule of Collateralized Loan Obligation Tranches | The following table represents the terms of the CLO issued. Facility ($000s) As of December 31, 2016 Par Value Issued Par Value Outstanding (*) Interest Rate Maturity Date Tranche A $ 231,345 $ 222,195 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 $ 285,036 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 $56.0 million and $56.0 million of Tranche C of Company issued CLO held by the Company, which eliminates within the collateralized loan obligation line of the consolidated balance sheets as of December 31, 2016 and December 31, 2015 , respectively. |
Schedule of Variable Interest Entities | The below table reflects the total assets and liabilities of the Company's only CLO. The CLO is considered a VIE and is consolidated into our consolidated financial statements as of December 31, 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) December 31, 2016 December 31, 2015 Cash $ 5 $ 5 Commercial mortgage loans, held for investment, net of allowance of $1,017 and $422 (1) 417,057 425,733 Accrued interest receivable 1,101 1,048 Total Assets $ 418,163 $ 426,786 Liabilities Notes payable (2)(3) $ 334,246 $ 342,998 Interest payable 564 513 Total Liabilities $ 334,810 $ 343,511 ________________________ (1) The balance is presented net of allowance for loan loss of $1.0 million and $0.4 million as of December 31, 2016 and December 31, 2015, respectively. The commercial mortgage loans balance as of December 31, 2015 of $426.2 million as disclosed in Note 5 to the consolidated financial statements included in the 2015 Form 10-K was not net of allowance for loan loss of $0.4 million . (2) Includes $55.8 million and $55.8 million of Tranche C of Company issued CLO held by the Company, which eliminates within the Collateral loan obligations line of the consolidated balance sheets as of December 31, 2016 and December 31, 2015 , respectively. (3) The balance is presented net of deferred financing cost and discount of $6.8 million and $7.2 million as of December 31, 2016 and December 31, 2015 , respectively. The notes payable balance as of December 31, 2015 of $348.3 million 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 $5.3 million . |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 12 Months Ended |
Dec. 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 years ended December 31, 2016 , 2015 and 2014 , respectively: Years Ended December 31, 2016 2015 2014 Net income (in thousands) $ 29,990 $ 24,933 $ 5,415 Basic weighted average shares outstanding 31,659,274 24,253,905 7,227,169 Unvested restricted shares 7,230 5,264 5,390 Diluted weighted average shares outstanding 31,666,504 24,259,169 7,232,559 Basic net income per share $ 0.95 $ 1.03 $ 0.75 Diluted net income per share $ 0.95 $ 1.03 $ 0.75 |
Common Stock Common Stock (Tabl
Common Stock Common Stock (Tables) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Schedule of Shares Repurchased | The following table reflects the number of shares repurchased under the SRP cumulatively through December 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 - March 31, 2016 — — — April 1 - June 30, 2016 668 536,240 24.08 July 1 - September 30, 2016 4 3,542 25.27 September 30 - December 31, 2016 (1)(2) 12 (2,573) 23.57 Cumulative as of December 31, 2016 985 918,683 $ 23.94 _______________________ (1) Number of shares reported for the time period from September 30 to December 31, 2016 represents cancellation of redemptions that were previously requested in prior periods. (2) Amounts exclude 483 redemption requests, representing 473,807 shares, received during the semi-annual period from July 1, 2016 to December 31, 2016, which were approved by the Board and repurchased in January 2017. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Unfunded Commitments Under Commercial Mortgage Loans | As of December 31, 2016 and 2015 , the Company had the below unfunded commitments to the Company's borrowers. Funding Expiration December 31, 2016 December 31, 2015 2016 $ — $ 890 2017 7,794 16,072 2018 62,368 104,428 2019 9,072 16,939 $ 79,234 $ 138,329 |
Related Party Transactions an31
Related Party Transactions and Arrangements (Tables) | 12 Months Ended |
Dec. 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 Former Advisor, its affiliates, entities under common control with the Former Advisor and the Former Dealer Manager incurred for services relating to the Offering during the years ended December 31, 2016 , 2015 and 2014 , respectively, and the associated payable as of December 31, 2016 and 2015 , respectively (in thousands): Years Ended December 31, Payable as of December 31, 2016 2015 2014 2016 2015 Total commissions and fees incurred from the Former Dealer Manager $ — $ 37,092 $ 33,190 $ — $ — |
Schedule of Offering Cost Reimbursements to Related Party | Total compensation and reimbursement for services provided by the Former Advisor, its affiliates, entities under common control with the Former Advisor and the Former Dealer Manager (1) $ — $ 7,442 $ 2,627 $ 480 $ 480 ________________________ (1) During 2016, the Company received reimbursement of excess payment of $0.8 million of offering costs from the Former Advisor. The reimbursement resulted in an increase to our Additional Paid-In Capital in the consolidated balance sheets. |
Schedule of Amount Contractually Due and Forgiven in Connection With Operation Related Services | The table below depicts related party fees and reimbursements in connection with the operations of the Company for the years ended December 31, 2016 , 2015 and 2014 and the associated payable as of December 31, 2016 and 2015 (in thousands): Years Ended December 31, Payable as of December 31, 2016 2015 2014 2016 2015 Acquisition fees and acquisition expenses (1) $ 806 $ 12,286 $ 6,578 $ — $ 20 Administrative services expenses (2) 4,376 644 — 1,000 — Advisory and investment banking fee 6 56 542 — — Asset management and subordinated performance fee 9,504 7,615 604 2,439 3,792 Other related party expenses 84 364 — 145 35 Total related party fees and reimbursements $ 14,776 $ 20,965 $ 7,724 $ 3,584 $ 3,847 ________________________ (1) Includes capitalized acquisition fees and expenses. (2) During the years ended December 31, 2015 and December 31, 2014, the Company previously disclosed Administrative services expenses within the Acquisition fees and acquisition expenses line of this table. For the period ended December 31, 2016 the amounts are presented separately and the change was applied retrospectively. |
Fair Value of Financial Instr32
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Financial instruments carried at fair value on a recurring basis | December 31, 2016 the Company transferred certain financial instruments classified from Level II to Level III. The changes in the Company's financial instruments classified as Level III are as follows (in thousands) (there were no transfers in December 31, 2015 ): Real Estate Securities December 31, 2015 balance $ — Transfers into Level III 57,639 Total realized and unrealized gains (losses) included in earnings: Realized loss on sale of real estate securities (874 ) Impairment losses on real estate securities (310 ) Net accretion — Unrealized gains (losses) included in OCI (1) 1,719 Purchases — Sales (9,125 ) Cash repayments/receipts — Transfers out of Level III — December 31, 2016 balance (2) $ 49,049 ________________________ (1) - Unrealized gains included in Other comprehensive income ("OCI") are attributable to assets still held at December 31, 2016. (2) - Subsequent to December 31, 2016, the Company sold 4 CMBS securities at a price at or close to par. The following table presents the Company's financial instruments carried at fair value on a recurring basis in the consolidated balance sheets by its level in the fair value hierarchy as of December 31, 2016 and 2015 (in thousands): Total Level I Level II Level III December 31, 2016 Real estate securities $ 49,049 $ — $ — $ 49,049 December 31, 2015 Real estate securities 130,754 — 130,754 — |
Financial instruments carried at fair value on a non-recurring basis | The following table presents the Company's financial instruments carried at fair value on a non-recurring basis in the consolidated balance sheets by its level in the fair value hierarchy as of December 31, 2016 (in thousands): Total Level I Level II Level III December 31, 2016 (*) Commercial mortgage loans, held-for-sale, measured at fair value $ 21,179 $ — $ — $ 21,179 ________________________ * As of December 31, 2016, the Company's portfolio of commercial real estate loans held-for-sale were carried at the lower of cost or market value. The fair value of certain held-for-sale loans were adjusted to reflect fair value of the assets based on the sales price received from a potential buyer. |
Financial instruments not carried at fair value | The fair values of the Company's commercial mortgage loans and collateralized loan obligations, which are not reported at fair value on the consolidated balance sheets are reported below as of December 31, 2016 and 2015 (in thousands): Level Carrying Amount Fair Value December 31, 2016 Commercial mortgage loans (1) Asset III $ 1,048,737 $ 1,029,756 Collateralized loan obligation Liability II 278,450 282,001 December 31, 2015 Commercial mortgage loans (1) Asset III $ 1,125,089 $ 1,138,841 Collateralized loan obligation Liability II 287,229 289,733 (1) The carrying value is gross of $2.2 million and $0.9 million of allowance for loan losses as of December 31, 2016 and December 31, 2015 , respectively. |
Offsetting Assets and Liabili33
Offsetting Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 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 December 31, 2016 and 2015 (in thousands): Gross Amounts Not Offset on the Balance Sheet Repurchase Agreements Gross Amounts of Recognized Liabilities Gross Amounts Offset on the Balance Sheet Net Amount of Liabilities Presented on the Balance Sheet Financial Instruments Cash Collateral Pledged Net Amount December 31, 2016 Commercial mortgage loans $ 257,664 $ — $ 257,664 $ 399,914 $ 5,000 $ — Real estate securities (*) 66,639 — 66,639 102,358 21 — 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 $53.3 million and $56.0 million of Tranche C of Company issued CLO held by the Company, which eliminates within the real estate securities, at fair value line of the consolidated balance sheets as of December 31, 2016 and December 31, 2015 , respectively . |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The following table represents the Company's operations by segment for the years ended December 31, 2016 , 2015 and 2014 (in thousands): December 31, 2016 Total Real Estate Debt Real Estate Securities Interest income $ 79,404 $ 73,884 $ 5,520 Interest expense 23,169 20,719 2,450 Realized loss on sale of real estate securities 1,906 — 1,906 Net income 29,990 29,797 193 Total assets 1,248,125 1,198,806 49,319 December 31, 2015 Interest income 59,393 56,040 3,353 Interest expense 12,268 11,149 1,119 Net income 24,933 24,401 532 Total assets $ 1,282,484 $ 1,150,858 $ 131,626 December 31, 2014 Interest income 15,466 14,733 733 Interest expense 2,196 1,985 211 Realized gain on sale of commercial mortgage loan 112 112 — Net income 5,415 5,209 206 Total assets $ 514,220 $ 463,526 $ 50,694 |
Organization and Business Ope35
Organization and Business Operations - Narrative (Details) - USD ($) $ in Thousands | May 14, 2013 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Proceeds from issuances of common stock | $ 2,000 | $ 0 | $ 385,203 | $ 345,944 |
Summary of Significant Accoun36
Summary of Significant Accounting Policies - Narrative (Details) - USD ($) | Feb. 28, 2016 | May 13, 2013 | Mar. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2016 | |
Equity, Class of Treasury Stock [Line Items] | |||||||||
Share repurchase program, period in force | 1 year | ||||||||
Repurchase price percent of NAV per share year one | 92.50% | ||||||||
Repurchase price percent of NAV per share year two | 95.00% | ||||||||
Repurchase price percent of NAV per share year three | 97.50% | ||||||||
Repurchase price percent of NAV per share year four | 100.00% | ||||||||
Repurchase limit percent per fiscal semester | 2.50% | 2.50% | |||||||
Repurchase limit percent per fiscal year | 5.00% | ||||||||
NAV per share | $ 20.05 | ||||||||
Required notice period for termination | 10 days | ||||||||
Shares issued under DRIP (in shares) | 2,094,291 | ||||||||
Minimum distribution percentage to qualify for REIT taxation status | 90.00% | ||||||||
Income tax expense | $ 0 | $ 0 | $ 209,000 | ||||||
Dividends declared per share | $ 2.0625 | $ 2.0625 | $ 2.06 | $ 2.06 | |||||
Ordinary income declared per share | 0.98 | 1.31 | |||||||
Return of capital declared per share | $ 1.08 | $ 0.75 | |||||||
Administrative services expenses | [1] | $ 600,000 | 0 | ||||||
Advisor | |||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||
Offering costs reimbursable percentage | 2.00% | ||||||||
Dealer Manager | Maximum | |||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||
Dealer fees and offering costs, percentage | 12.00% | ||||||||
Board Expense | |||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||
Reclassification and presentation adjustments | 300,000 | ||||||||
Insurance Expense | |||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||
Reclassification and presentation adjustments | $ 200,000 | ||||||||
Other Expenses, Board Expense | |||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||
Reclassification and presentation adjustments | 200,000 | ||||||||
Other Expenses, Insurance Expense | |||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||
Reclassification and presentation adjustments | $ 200,000 | ||||||||
Common Stock | |||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||
Shares issued under DRIP (in shares) | 1,031,812 | 842,946 | 211,577 | ||||||
Reclassification and presentation adjustments | $ 500,000 | ||||||||
[1] | During the year ended December 31, 2015, the Company reported Administrative services expenses within the Professional fees line. For the year ended December 31, 2016 the amounts are presented separately and the change was applied retrospectively. We did not incur any administrative services expenses in 2014. |
Commercial Mortgage Loans - Nar
Commercial Mortgage Loans - Narrative (Details) | 12 Months Ended | |
Dec. 31, 2016ratingloan | Dec. 31, 2015ratingloan | |
Receivables [Abstract] | ||
Number of mezzanine loans funded | loan | 71 | 77 |
Initial risk rating | 2 | |
Weighted average risk rating of loans | 2.1 | 2 |
Commercial Mortgage Loans - Loa
Commercial Mortgage Loans - Loans Receivable by Class (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Receivables [Abstract] | ||||
Senior loans | $ 901,907 | $ 894,075 | ||
Mezzanine loans | 136,830 | 221,014 | ||
Subordinated loans | 10,000 | 10,000 | ||
Total gross carrying value of loans | 1,048,737 | 1,125,089 | ||
Allowance for commercial mortgage loans | 2,181 | 888 | $ 570 | |
Total commercial mortgage loans,held-for-investment, net | [1] | $ 1,046,556 | $ 1,124,201 | |
[1] | Includes $417.1 million and $425.7 million of loans net of allowance of $1.0 million and $0.4 million pledged as collateral on collateralized loan obligations ("CLO"), a variable interest entity ("VIE") as of December 31, 2016 and 2015, respectively. |
Commercial Mortgage Loans - Pro
Commercial Mortgage Loans - Provision for Loan Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning of period | $ 888 | $ 570 | |
Provision for loan losses | 1,293 | 318 | $ 570 |
Charge-offs | 0 | 0 | |
Recoveries | 0 | 0 | |
Ending allowance for loan losses | $ 2,181 | $ 888 | $ 570 |
Commercial Mortgage Loans - L40
Commercial Mortgage Loans - Loans Receivable Portfolio (Details) - First Mortgage - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Par Value | $ 1,077,237 | $ 1,134,446 |
Percentage | 100.00% | 100.00% |
Office | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Par Value | $ 340,944 | $ 307,876 |
Percentage | 31.60% | 27.20% |
Multifamily | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Par Value | $ 329,203 | $ 305,129 |
Percentage | 30.60% | 26.90% |
Hospitality | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Par Value | $ 143,582 | $ 171,752 |
Percentage | 13.30% | 15.10% |
Retail | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Par Value | $ 154,684 | $ 158,784 |
Percentage | 14.40% | 14.00% |
Mixed Use | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Par Value | $ 56,136 | $ 138,798 |
Percentage | 5.20% | 12.20% |
Industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Par Value | $ 52,688 | $ 52,107 |
Percentage | 4.90% | 4.60% |
Commercial Mortgage Loans - Rea
Commercial Mortgage Loans - Real Estate Notes Receivable (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Movement in Mortgage Loans on Real Estate [Roll Forward] | |||
Balance at Beginning of Year | $ 1,124,201 | $ 456,884 | |
Acquisitions and originations | 53,640 | 793,731 | |
Dispositions | (44,355) | 0 | |
Principal repayments | (66,490) | (127,643) | |
Discount accretion and premium amortization | 2,279 | 1,547 | |
Loans transferred to commercial real estate loans, held-for-sale, at fair value | (21,179) | 0 | |
Unrealized losses on loans held-for-sale | (247) | 0 | $ 0 |
Provision for loan losses | (1,293) | (318) | (570) |
Balance at End of Year | $ 1,046,556 | $ 1,124,201 | $ 456,884 |
Real Estate Securities - Fair V
Real Estate Securities - Fair Value Measurements, Recurring and Nonrecurring (Details) - CMBS $ in Thousands | Dec. 31, 2016USD ($)investment | Dec. 31, 2015USD ($)investment |
Schedule of Available-for-sale Securities [Line Items] | ||
Number of Investments | investment | 6 | 16 |
Weighted Average Interest Rate | 5.75% | 4.71% |
Par Value | $ 50,000 | $ 133,183 |
Fair Value | $ 49,049 | $ 130,754 |
Real Estate Securities - Availa
Real Estate Securities - Available-for-sale Securities (Details) - CMBS - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 49,548 | $ 133,008 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (499) | (2,254) |
Fair Value | $ 49,049 | $ 130,754 |
Real Estate Securities - Narrat
Real Estate Securities - Narrative (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 29, 2017security | Dec. 31, 2016USD ($)investmentsecurity | Dec. 31, 2015USD ($)investment | Dec. 31, 2014USD ($) | |
Schedule of Available-for-sale Securities [Line Items] | ||||
Other-than-temporary impairment losses of one CMBS security | $ 310 | $ 0 | $ 0 | |
Realized loss on sale of real estate securities | $ 1,906 | $ 0 | $ 0 | |
CMBS | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Number of investments | investment | 6 | 16 | ||
Aggregate carrying value | $ 49,548 | $ 133,008 | ||
Unrealized Losses | $ (499) | $ (2,254) | ||
Number of investments in an unrealized loss position | investment | 2 | |||
Unrealized loss for 12 months or longer | $ 200 | |||
Number of CMBS securities sold | security | 10 | |||
Impaired CMBS | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Other-than-temporary impairment losses of one CMBS security | $ 300 | |||
Subsequent Event | CMBS | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Number of investments | security | 2 | |||
Number of CMBS securities sold | security | 4 |
Debt - Narrative (Details)
Debt - Narrative (Details) | 12 Months Ended | ||||
Dec. 31, 2016USD ($)mortgage_asset$ / sharesshares | Dec. 31, 2015USD ($)mortgage_asset$ / sharesshares | Dec. 27, 2016USD ($) | Oct. 05, 2016USD ($) | Oct. 19, 2015USD ($)$ / 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 | |||
Minimum | |||||
Line of Credit Facility [Line Items] | |||||
Master repurchase agreements maturity (days) | 30 days | ||||
Maximum | |||||
Line of Credit Facility [Line Items] | |||||
Master repurchase agreements maturity (days) | 90 days | ||||
U.S. Bank National Association | |||||
Line of Credit Facility [Line Items] | |||||
Preferred stock, shares issued (in shares) | shares | 78,188,494 | ||||
Preferred stock, par value per share (in dollars per share) | $ / shares | $ 0.001 | ||||
Preferred stock, liquidation preference (in dollars per share) | $ / shares | $ 1,000 | ||||
Secured Debt | U.S. Bank National Association | |||||
Line of Credit Facility [Line Items] | |||||
Notes payable | $ 350,230,000 | $ 350,230,000 | $ 350,200,000 | ||
Secured Debt | U.S. Bank National Association | Tranche C | |||||
Line of Credit Facility [Line Items] | |||||
Notes payable | $ 76,044,000 | $ 76,044,000 | 76,000,000 | ||
Secured Debt | U.S. Bank National Association | Subsidiaries | Tranche C | |||||
Line of Credit Facility [Line Items] | |||||
Notes payable | $ 56,000,000 | ||||
Secured Debt | Collateralized Loan Obligations | U.S. Bank National Association | |||||
Line of Credit Facility [Line Items] | |||||
Collateral (mortgage asset) | mortgage_asset | 27 | 28 | |||
Collateral amount | $ 419,300,000 | $ 428,400,000 | |||
GS Repo Facility | |||||
Line of Credit Facility [Line Items] | |||||
Extension on initial maturity date | 1 year | ||||
Revolving Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Amount Outstanding | $ 66,639,000 | $ 117,211,000 | |||
Interest Rate | 2.50% | 2.01% | |||
Revolving Credit Facility | JPM Repo Facility | |||||
Line of Credit Facility [Line Items] | |||||
Unsecured line of credit | $ 150,000,000 | $ 300,000,000 | |||
Amount Outstanding | $ 257,700,000 | $ 84,300,000 | |||
Interest Rate | 3.08% | 3.11% | |||
Interest expense | $ 6,000,000 | $ 5,500,000 | |||
Revolving Credit Facility | GS Repo Facility | |||||
Line of Credit Facility [Line Items] | |||||
Unsecured line of credit | $ 250,000,000 | ||||
Revolving Credit Facility | Barclays Repo Facility | |||||
Line of Credit Facility [Line Items] | |||||
Unsecured line of credit | $ 150,000,000 | ||||
Amount Outstanding | $ 121,900,000 | ||||
Interest Rate | 2.87% | 2.16% | |||
Interest expense | $ 6,100,000 | $ 4,000,000 | |||
LIBOR | Revolving Credit Facility | JPM Repo Facility | Minimum | |||||
Line of Credit Facility [Line Items] | |||||
Interest Rate | 2.25% | ||||
LIBOR | Revolving Credit Facility | JPM Repo Facility | Maximum | |||||
Line of Credit Facility [Line Items] | |||||
Interest Rate | 4.50% | ||||
LIBOR | Revolving Credit Facility | GS Repo Facility | Minimum | |||||
Line of Credit Facility [Line Items] | |||||
Interest Rate | 2.35% | ||||
LIBOR | Revolving Credit Facility | GS Repo Facility | Maximum | |||||
Line of Credit Facility [Line Items] | |||||
Interest Rate | 2.85% |
Debt - Schedule of Master Repur
Debt - Schedule of Master Repurchase Agreements (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | ||
Assets Sold under Agreements to Repurchase [Line Items] | |||
Accrued Interest | [1] | $ 897 | $ 792 |
Real estate securities, available for sale, at fair value | 49,049 | 130,754 | |
Secured Debt | U.S. Bank National Association | Tranche C | |||
Assets Sold under Agreements to Repurchase [Line Items] | |||
Real estate securities, available for sale, at fair value | 53,300 | 56,000 | |
Revolving Credit Facility | |||
Assets Sold under Agreements to Repurchase [Line Items] | |||
Amount Outstanding | 66,639 | 117,211 | |
Accrued Interest | 101 | 182 | |
Collateral Pledged | $ 102,358 | $ 171,071 | |
Interest Rate | 2.50% | 2.01% | |
Days to Maturity | 8 days | 17 days | |
Revolving Credit Facility | JP Morgan Securities LLC | |||
Assets Sold under Agreements to Repurchase [Line Items] | |||
Amount Outstanding | $ 59,122 | $ 86,898 | |
Accrued Interest | 96 | 108 | |
Collateral Pledged | $ 92,658 | $ 130,618 | |
Interest Rate | 2.55% | 2.03% | |
Days to Maturity | 6 days | 8 days | |
Revolving Credit Facility | Citigroup Global Markets, Inc. | |||
Assets Sold under Agreements to Repurchase [Line Items] | |||
Amount Outstanding | $ 3,879 | $ 26,619 | |
Accrued Interest | 1 | 71 | |
Collateral Pledged | $ 4,850 | $ 35,528 | |
Interest Rate | 2.11% | 2.00% | |
Days to Maturity | 26 days | 45 days | |
Revolving Credit Facility | Wells Fargo Securities, LLC | |||
Assets Sold under Agreements to Repurchase [Line Items] | |||
Amount Outstanding | $ 3,638 | $ 3,694 | |
Accrued Interest | 4 | 3 | |
Collateral Pledged | $ 4,850 | $ 4,925 | |
Interest Rate | 2.05% | 1.67% | |
Days to Maturity | 13 days | 13 days | |
[1] | Includes $0.6 million and $0.5 million of interest payable for loans pledged as collateral on CLO, a VIE as of December 31, 2016 and 2015, respectively. |
Debt - Collateralized Loan Obli
Debt - Collateralized Loan Obligation by Tranche (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Oct. 19, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | ||||
Collateralized loan obligations | $ 278,450 | $ 287,229 | ||
Allowance for commercial mortgage loans | $ 2,181 | $ 888 | $ 570 | |
Secured Debt | Tranche A | 1M LIBOR | ||||
Debt Instrument [Line Items] | ||||
Interest Rate | 1.75% | 1.75% | ||
Secured Debt | Tranche B | 1M LIBOR | ||||
Debt Instrument [Line Items] | ||||
Interest Rate | 3.88% | 3.88% | ||
Secured Debt | Tranche C | 1M LIBOR | ||||
Debt Instrument [Line Items] | ||||
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 | 285,036 | 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 | 222,195 | 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 | ||
RFT issued Collaterized Loan Obligation | U.S. Bank National Association | Secured Debt | Tranche C | ||||
Debt Instrument [Line Items] | ||||
Par Value Outstanding | 56,000 | 56,000 | ||
Collaterized loan obligation | ||||
Debt Instrument [Line Items] | ||||
Par Value Issued | 334,246 | 342,998 | ||
Allowance for commercial mortgage loans | 1,017 | 422 | ||
Collaterized loan obligation | U.S. Bank National Association | Secured Debt | Tranche C | ||||
Debt Instrument [Line Items] | ||||
Par Value Issued | $ 55,800 | $ 55,800 |
Debt - Collateralized Loan Ob48
Debt - Collateralized Loan Obligation (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2016 | Dec. 31, 2015 | Oct. 19, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Variable Interest Entity [Line Items] | ||||||
Cash and cash equivalents | $ 118,048 | $ 14,807 | $ 386 | $ 178 | ||
Commercial mortgage loans | [1] | 1,046,556 | 1,124,201 | |||
Accrued interest receivable | [2] | 5,955 | 5,360 | |||
Total assets | 1,248,125 | 1,282,484 | 514,220 | |||
Interest payable | [3] | 897 | 792 | |||
Total liabilities | 614,475 | 628,155 | ||||
Allowance for commercial mortgage loans | 2,181 | 888 | $ 570 | |||
Gross commercial mortgage loans | 1,048,737 | 1,125,089 | ||||
Secured Debt | U.S. Bank National Association | ||||||
Variable Interest Entity [Line Items] | ||||||
Notes payable | 350,230 | 350,230 | $ 350,200 | |||
Secured Debt | Tranche C | U.S. Bank National Association | ||||||
Variable Interest Entity [Line Items] | ||||||
Notes payable | 76,044 | 76,044 | $ 76,000 | |||
Collaterized loan obligation | ||||||
Variable Interest Entity [Line Items] | ||||||
Cash and cash equivalents | 5 | 5 | ||||
Commercial mortgage loans | 417,057 | 425,733 | ||||
Accrued interest receivable | 1,101 | 1,048 | ||||
Total assets | 418,163 | 426,786 | ||||
Notes payable | 334,246 | 342,998 | ||||
Interest payable | 564 | 513 | ||||
Total liabilities | 334,810 | 343,511 | ||||
Allowance for commercial mortgage loans | 1,017 | 422 | ||||
Gross commercial mortgage loans | 426,200 | |||||
Deferred financing costs and discount | 6,800 | 7,200 | ||||
Collaterized loan obligation | Secured Debt | Tranche C | U.S. Bank National Association | ||||||
Variable Interest Entity [Line Items] | ||||||
Notes payable | $ 55,800 | 55,800 | ||||
Collaterized loan obligation | Loans Payable [Member] | ||||||
Variable Interest Entity [Line Items] | ||||||
Notes payable gross | 348,300 | |||||
Deferred financing cost | $ 5,300 | |||||
[1] | Includes $417.1 million and $425.7 million of loans net of allowance of $1.0 million and $0.4 million pledged as collateral on collateralized loan obligations ("CLO"), a variable interest entity ("VIE") as of December 31, 2016 and 2015, respectively. | |||||
[2] | Includes $1.1 million and $1.0 million of interest receivable for loans pledged as collateral on CLO, a VIE as of December 31, 2016 and 2015, respectively. | |||||
[3] | Includes $0.6 million and $0.5 million of interest payable for loans pledged as collateral on CLO, a VIE as of December 31, 2016 and 2015, respectively. |
Net Income Per Share - Summary
Net Income Per Share - Summary of the Basic and Diluted EPS (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Earnings Per Share [Abstract] | |||
Net income | $ 29,990 | $ 24,933 | $ 5,415 |
Basic weighted average shares outstanding (in shares) | 31,659,274 | 24,253,905 | 7,227,169 |
Unvested restricted shares (in shares) | 7,230 | 5,264 | 5,390 |
Diluted weighted average shares outstanding (in shares) | 31,666,504 | 24,259,169 | 7,232,559 |
Basic net income per share (in dollars per share) | $ 0.95 | $ 1.03 | $ 0.75 |
Diluted net income per share (in dollars per share) | $ 0.95 | $ 1.03 | $ 0.75 |
Common Stock - Narrative (Detai
Common Stock - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | Feb. 28, 2016 | Dec. 30, 2014 | May 13, 2013 | Mar. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2016 | Dec. 31, 2013 |
Class of Stock [Line Items] | |||||||||||
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 | $ 0.0056352459 | |||||||||
Common stock, dividends, per share per annum, declared (in dollars per share) | $ 2.0625 | $ 2.0625 | $ 2.06 | $ 2.06 | |||||||
DRIP offer price | $ 20.05 | ||||||||||
Total distributions | $ 65.3 | $ 47.1 | |||||||||
Cash distributions | 40.3 | 26.9 | |||||||||
Common stock issued under DRIP | $ 25 | $ 20.2 | |||||||||
Share repurchase program, period in force | 1 year | ||||||||||
Repurchase price percent of NAV per share year one | 92.50% | ||||||||||
Repurchase price percent of NAV per share year two | 95.00% | ||||||||||
Repurchase price percent of NAV per share year three | 97.50% | ||||||||||
Repurchase price percent of NAV per share year four | 100.00% | ||||||||||
Repurchase limit percent per fiscal semester | 2.50% | 2.50% | |||||||||
Repurchase limit percent per fiscal year | 5.00% | ||||||||||
Common Stock | |||||||||||
Class of Stock [Line Items] | |||||||||||
Common stock, shares issued (in shares) | 0 | ||||||||||
Convertible Stock | |||||||||||
Class of Stock [Line Items] | |||||||||||
Shares outstanding (in shares) | 0 | 0 | 0 | 1,000 | 1,000 | 0 | |||||
Issuance of convertible stock (in shares) | 1,000 | 1,000 | |||||||||
Common stock, shares issued (in shares) | 1,000 | ||||||||||
Advisor | Common Stock | |||||||||||
Class of Stock [Line Items] | |||||||||||
Common stock, shares issued (in shares) | 0 | ||||||||||
Advisor | Convertible Stock | |||||||||||
Class of Stock [Line Items] | |||||||||||
Issuance of convertible stock (in shares) | 1,000 | ||||||||||
Convertible stock, per share value | $ 1 | ||||||||||
Common Stock | |||||||||||
Class of Stock [Line Items] | |||||||||||
Shares outstanding (in shares) | 31,884,631 | 31,884,631 | 31,884,631 | 31,385,280 | 15,472,192 | 1,330,669 |
Common Stock - Schedule of Shar
Common Stock - Schedule of Shares Repurchased (Details) - Share Repurchase Program (SRP) - Common Stock | 1 Months Ended | 3 Months Ended | ||||
Jan. 31, 2017share_repurchase_requestshares | Dec. 31, 2016share_repurchase_request$ / sharesshares | Sep. 30, 2016share_repurchase_request$ / sharesshares | Jun. 30, 2016share_repurchase_request$ / sharesshares | Mar. 31, 2016share_repurchase_request$ / sharesshares | Dec. 31, 2015share_repurchase_request$ / sharesshares | |
Class of Stock [Line Items] | ||||||
Cumulative number of repurchase requests | share_repurchase_request | 985 | 301 | ||||
Cumulative number of shares repurchased (in shares) | shares | 918,683 | 381,474 | ||||
Cumulative treasury stock acquired (usd per share) | $ / shares | $ 23.94 | $ 23.72 | ||||
Repurchase requests during period | share_repurchase_request | 12 | 4 | 668 | 0 | ||
Number of shares repurchased during period (in shares) | shares | (2,573) | 3,542 | 536,240 | 0 | ||
Treasury stock acquired (usd per share) | $ / shares | $ 23.57 | $ 25.27 | $ 24.08 | $ 0 | ||
Subsequent Event | ||||||
Class of Stock [Line Items] | ||||||
Repurchase requests during period | share_repurchase_request | 483 | |||||
Number of shares repurchased during period (in shares) | shares | 473,807 |
Commitments and Contingencies52
Commitments and Contingencies (Details) $ in Thousands | Oct. 20, 2016USD ($) | Jun. 06, 2016director | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) |
Unfunded Commitments Under Commercial Mortgage Loans | ||||
Loss Contingencies [Line Items] | ||||
2,016 | $ 0 | $ 890 | ||
2,017 | 7,794 | 16,072 | ||
2,018 | 62,368 | 104,428 | ||
2,019 | 9,072 | 16,939 | ||
Total | 79,234 | $ 138,329 | ||
US District Court for The Southern District of New York and Styled Rurode vs. Reality Finance Trust, Inc., et. al. | Pending Litigation | ||||
Loss Contingencies [Line Items] | ||||
Number of directors against whom actions were filed | director | 2 | |||
Value of loss contingency damages sought | $ 750 | |||
US District Court for The Southern District of New York and Styled Rurode vs. Reality Finance Trust, Inc., et. al. | Pending Litigation | Minimum | ||||
Loss Contingencies [Line Items] | ||||
Estimate of possible loss | 0 | |||
US District Court for The Southern District of New York and Styled Rurode vs. Reality Finance Trust, Inc., et. al. | Pending Litigation | Maximum | ||||
Loss Contingencies [Line Items] | ||||
Estimate of possible loss | $ 750 |
Related Party Transactions an53
Related Party Transactions and Arrangements - Narrative (Details) - USD ($) | Sep. 29, 2016 | Jun. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Jun. 01, 2013 | |
Related Party Transaction [Line Items] | |||||||
Selling commission, organizational and offering costs, maximum | 2.00% | ||||||
Proceeds received from the offering | $ 800,000 | ||||||
Total commissions and fees incurred from the Dealer Manager | [1] | $ 4,376,000 | 644,000 | $ 0 | |||
Asset management and subordinated performance fee | 9,504,000 | 7,615,000 | 604,000 | ||||
Prepaid expenses and other assets less than ($0.1 million) | $ 1,916,000 | $ 689,000 | $ 900,000 | ||||
Common stock, shares outstanding and owned by related party (in shares) | 31,884,631 | 31,385,280 | |||||
Sponsor | |||||||
Related Party Transaction [Line Items] | |||||||
Common stock, shares outstanding and owned by related party (in shares) | 52,771 | 8,888 | |||||
Participating Broker Dealers | |||||||
Related Party Transaction [Line Items] | |||||||
Selling commission, percentage of offering proceeds | 7.50% | ||||||
Selling commission, percentage of offering proceeds, first payment | 2.50% | ||||||
Selling commission, percentage of offering proceeds, subsequent payments | 1.00% | ||||||
Affiliated Entity | |||||||
Related Party Transaction [Line Items] | |||||||
Total commissions and fees incurred from the Dealer Manager | $ 14,776,000 | $ 20,965,000 | 7,724,000 | ||||
Affiliated Entity | Asset Management Fee | |||||||
Related Party Transaction [Line Items] | |||||||
Total commissions and fees incurred from the Dealer Manager | 9,500,000 | 4,600,000 | 0 | ||||
Affiliated Entity | Benefit Street Partners LLC | |||||||
Related Party Transaction [Line Items] | |||||||
Real estate acquisition fee, percentage | 1.00% | ||||||
Amount of purchase price to terminate Company's obligation to pay acquisition fees to the Advisor | $ 600,000,000 | ||||||
Maximum percent of principal amount funded given as acquisition fees and expenses | 4.50% | ||||||
Annual asset management fee, percent of stockholder's equity | 1.50% | ||||||
Subordinated performance fee, percent that total return exceeds per year | 6.00% | ||||||
Percent of excess total return | 15.00% | ||||||
Maximum annual subordinated performance fee payable percent of total return | 10.00% | ||||||
Monthly asset management fee, percent of equity | 0.125% | ||||||
Affiliated Entity | Benefit Street Partners LLC | Fee to Acquire and Originate Real Estate Debt | |||||||
Related Party Transaction [Line Items] | |||||||
Transaction rate | 0.50% | ||||||
Affiliated Entity | Benefit Street Partners LLC | Asset Management Fee | |||||||
Related Party Transaction [Line Items] | |||||||
Total commissions and fees incurred from the Dealer Manager | 2,400,000 | ||||||
Due to related parties | 2,400,000 | ||||||
Affiliated Entity | Advisor | Asset Management Fee | |||||||
Related Party Transaction [Line Items] | |||||||
Total commissions and fees incurred from the Dealer Manager | $ 7,100,000 | ||||||
Due to related parties | 3,800,000 | ||||||
Dealer Manager | |||||||
Related Party Transaction [Line Items] | |||||||
Selling commission, percentage of offering proceeds | 7.00% | ||||||
Selling commission, percentage of offering proceeds, reallowance fee | 3.00% | ||||||
Selling commission, percentage of offering proceeds, reduction fee | 2.50% | ||||||
Total commissions and fees incurred from the Dealer Manager | $ 0 | 37,092,000 | 33,190,000 | ||||
Prepaid expenses and other assets less than ($0.1 million) | $ 0 | 100,000 | |||||
Advisor | |||||||
Related Party Transaction [Line Items] | |||||||
Real estate acquisition fee, percentage | 1.00% | ||||||
Subordinated performance fee, percent that total return exceeds per year | 6.00% | ||||||
Percent of excess total return | 15.00% | ||||||
Maximum annual subordinated performance fee payable percent of total return | 10.00% | ||||||
Real estate acquisition fee, percentage reimbursement of acquisition costs, maximum exposure | 4.50% | ||||||
Total commissions and fees incurred from the Dealer Manager | $ 0 | 0 | 0 | ||||
Annual asset management fee, percent of cost of company's assets | 0.75% | ||||||
Asset management and subordinated performance fee | $ 1,300,000 | 3,000,000 | 600,000 | ||||
Advisor expenses payable, percent of average invested assets | 2.00% | ||||||
Advisor expenses payable, percent of net income | 25.00% | ||||||
Monthly asset management fee, percentage of cost of company's assets | 0.0625% | ||||||
Advisor | Fee to Acquire and Originate Real Estate Debt | |||||||
Related Party Transaction [Line Items] | |||||||
Transaction rate | 0.50% | ||||||
Advisor | Administrative Service and Personnel Cost Reimbursements | |||||||
Related Party Transaction [Line Items] | |||||||
Total commissions and fees incurred from the Dealer Manager | $ 4,400,000 | 600,000 | |||||
Advisor | Incurred | Acquisition fees and acquisition expenses | |||||||
Related Party Transaction [Line Items] | |||||||
Total commissions and fees incurred from the Dealer Manager | 800,000 | 7,900,000 | 4,400,000 | ||||
Advisor | Payable | Acquisition fees and acquisition expenses | |||||||
Related Party Transaction [Line Items] | |||||||
Total commissions and fees incurred from the Dealer Manager | $ 0 | 4,400,000 | 2,200,000 | ||||
Advisor | Waived | |||||||
Related Party Transaction [Line Items] | |||||||
Acquisition related expenses and fees | $ 800,000 | $ 600,000 | |||||
[1] | During the year ended December 31, 2015, the Company reported Administrative services expenses within the Professional fees line. For the year ended December 31, 2016 the amounts are presented separately and the change was applied retrospectively. We did not incur any administrative services expenses in 2014. |
Related Party Transactions an54
Related Party Transactions and Arrangements - Schedule of Selling Commissions and Dealer Manager Fees Payable to Affiliate (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Related Party Transaction [Line Items] | ||||
Total commissions and fees incurred from the Dealer Manager | [1] | $ 4,376,000 | $ 644,000 | $ 0 |
Payable to related party | 4,064,000 | 4,327,000 | ||
Dealer Manager | ||||
Related Party Transaction [Line Items] | ||||
Total commissions and fees incurred from the Dealer Manager | 0 | 37,092,000 | $ 33,190,000 | |
Payable to related party | $ 0 | $ 0 | ||
[1] | During the year ended December 31, 2015, the Company reported Administrative services expenses within the Professional fees line. For the year ended December 31, 2016 the amounts are presented separately and the change was applied retrospectively. We did not incur any administrative services expenses in 2014. |
Related Party Transactions an55
Related Party Transactions and Arrangements - Schedule of Offering Cost Reimbursements to Related Party (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Related Party Transaction [Line Items] | ||||
Total commissions and fees incurred from the Dealer Manager | [1] | $ 4,376,000 | $ 644,000 | $ 0 |
Payable to related party | 4,064,000 | 4,327,000 | ||
Reimbursement of excess payment of offering costs | 800,000 | |||
Reimbursement of stock offering | Advisor and Dealer Manager | ||||
Related Party Transaction [Line Items] | ||||
Total commissions and fees incurred from the Dealer Manager | 0 | 7,442,000 | $ 2,627,000 | |
Payable to related party | $ 480,000 | $ 480,000 | ||
[1] | During the year ended December 31, 2015, the Company reported Administrative services expenses within the Professional fees line. For the year ended December 31, 2016 the amounts are presented separately and the change was applied retrospectively. We did not incur any administrative services expenses in 2014. |
Related Party Transactions an56
Related Party Transactions and Arrangements - Schedule of Amount Contractually Due and Forgiven in Connection With Operation Related Services (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Related Party Transaction [Line Items] | ||||
Total related party fees and reimbursements | [1] | $ 4,376,000 | $ 644,000 | $ 0 |
Payable to related party | 4,064,000 | 4,327,000 | ||
Affiliated Entity | ||||
Related Party Transaction [Line Items] | ||||
Total related party fees and reimbursements | 14,776,000 | 20,965,000 | 7,724,000 | |
Payable to related party | 3,584,000 | 3,847,000 | ||
Affiliated Entity | Acquisition fees and acquisition expenses | Nonrecurring Fees | ||||
Related Party Transaction [Line Items] | ||||
Total related party fees and reimbursements | 806,000 | 12,286,000 | 6,578,000 | |
Payable to related party | 0 | 20,000 | ||
Affiliated Entity | Administrative services expenses | Nonrecurring Fees | ||||
Related Party Transaction [Line Items] | ||||
Payable to related party | 1,000,000 | 0 | ||
Affiliated Entity | Advisory and investment banking fee | Nonrecurring Fees | ||||
Related Party Transaction [Line Items] | ||||
Total related party fees and reimbursements | 6,000 | 56,000 | 542,000 | |
Payable to related party | 0 | 0 | ||
Affiliated Entity | Asset management and subordinated performance fee | Nonrecurring Fees | ||||
Related Party Transaction [Line Items] | ||||
Total related party fees and reimbursements | 9,504,000 | 7,615,000 | 604,000 | |
Payable to related party | 2,439,000 | 3,792,000 | ||
Affiliated Entity | Other related party expenses | Nonrecurring Fees | ||||
Related Party Transaction [Line Items] | ||||
Total related party fees and reimbursements | 84,000 | 364,000 | $ 0 | |
Payable to related party | $ 145,000 | $ 35,000 | ||
[1] | During the year ended December 31, 2015, the Company reported Administrative services expenses within the Professional fees line. For the year ended December 31, 2016 the amounts are presented separately and the change was applied retrospectively. We did not incur any administrative services expenses in 2014. |
Share-Based Compensation - Narr
Share-Based Compensation - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation expense | $ 876 | ||
Shares issued for services (in shares) | 39 | ||
Board of Directors | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common stock, price per share | $ 20.05 | ||
Restricted Shares and Unvested Restricted Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Antidilutive securities excluded from computation (in shares) | 15,414 | 10,666 | |
Restricted Unvested Common Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Antidilutive securities excluded from computation (in shares) | 10,082 | 6,400 | |
Forfeited Restricted Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Antidilutive securities excluded from computation (in shares) | 2,399 | 2,399 | |
Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Antidilutive securities excluded from computation (in shares) | 2,933 | 1,867 | |
Restricted Share Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares granted under restricted share plan, maximum percentage of total shares allowed | 5.00% | ||
Maximum shares allowed to be granted under restricted share plan (in shares) | 4,000,000 | ||
Restricted Share Plan | Restricted Common Stock | Board of Directors | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation expense | $ 44,324 | $ 29,588 | $ 27,281 |
Fair Value of Financial Instr58
Fair Value of Financial Instruments - Financial Instruments Carried at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Real estate securities, available for sale, at fair value | $ 49,049 | $ 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, available for sale, at fair value | 49,049 | 130,754 |
Level I | Fair Value, Measurements, Recurring | Real Estate Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Real estate securities, available for sale, at fair value | 0 | 0 |
Level II | Fair Value, Measurements, Recurring | Real Estate Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Real estate securities, available for sale, at fair value | 0 | 130,754 |
Level III | Fair Value, Measurements, Recurring | Real Estate Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Real estate securities, available for sale, at fair value | $ 49,049 | $ 0 |
Fair Value of Financial Instr59
Fair Value of Financial Instruments - Changes in the Company's Financial Instruments Classified as Level III (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 29, 2017USD ($)security | Dec. 31, 2016USD ($)security | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Impairment losses on real estate securities | $ (310) | $ 0 | $ 0 | |
Net accretion | 2,336 | 1,561 | 399 | |
Cash repayments/receipts | $ 2,218 | 3,010 | $ 73 | |
CMBS | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Number of CMBS securities sold | security | 10 | |||
Real Estate Securities | Fair Value, Measurements, Recurring | Level III | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | $ 49,049 | $ 0 | ||
Transfers into Level III | 57,639 | |||
Realized and unrealized gains (losses) included in earnings | (874) | |||
Impairment losses on real estate securities | (310) | |||
Net accretion | 0 | |||
Unrealized gains (losses) included in OCI | 1,719 | |||
Purchases | 0 | |||
Sales | (9,125) | |||
Cash repayments/receipts | 0 | |||
Transfers out of Level III | 0 | |||
Ending balance | $ 49,049 | $ 0 | ||
Subsequent Event | CMBS | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Number of CMBS securities sold | security | 4 |
Fair Value of Financial Instr60
Fair Value of Financial Instruments - Significant Unobservable Inputs (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Real estate securities, available for sale, at fair value | $ 49,049 | $ 130,754 |
Real Estate Securities | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Real estate securities, available for sale, at fair value | 49,049 | 130,754 |
Real Estate Securities | Fair Value, Measurements, Recurring | Level III | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Real estate securities, available for sale, at fair value | $ 49,049 | $ 0 |
Minimum | Real Estate Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Discount rate | 3.70% | |
Maximum | Real Estate Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Discount rate | 8.25% |
Fair Value of Financial Instr61
Fair Value of Financial Instruments - Financial Instruments Measured at Fair Value on a Non-Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Commercial mortgage loans, held-for-sale, measured at fair value | $ 21,179 | $ 0 | $ 0 |
Level I | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Commercial mortgage loans, held-for-sale, measured at fair value | 0 | ||
Level II | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Commercial mortgage loans, held-for-sale, measured at fair value | 0 | ||
Level III | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Commercial mortgage loans, held-for-sale, measured at fair value | $ 21,179 |
Fair Value of Financial Instr62
Fair Value of Financial Instruments - Financial Instruments Not Measured at Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Commercial mortgage loans (1) | [1] | $ 1,046,556 | $ 1,124,201 | |
Collateralized loan obligations | 278,450 | 287,229 | ||
Allowance for commercial mortgage loans | 2,181 | 888 | $ 570 | |
Carrying Amount | Level III | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Commercial mortgage loans (1) | 1,048,737 | 1,125,089 | ||
Allowance for commercial mortgage loans | 2,200 | 900 | ||
Carrying Amount | Level II | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Collateralized loan obligations | 278,450 | 287,229 | ||
Fair Value | Level III | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Commercial mortgage loans (1) | 1,029,756 | 1,138,841 | ||
Fair Value | Level II | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Collateralized loan obligations | $ 282,001 | $ 289,733 | ||
[1] | Includes $417.1 million and $425.7 million of loans net of allowance of $1.0 million and $0.4 million pledged as collateral on collateralized loan obligations ("CLO"), a variable interest entity ("VIE") as of December 31, 2016 and 2015, respectively. |
Offsetting Assets and Liabili63
Offsetting Assets and Liabilities - Offsetting Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Offsetting Liabilities [Line Items] | ||
Real estate securities, available for sale, at fair value | $ 49,049 | $ 130,754 |
Secured Debt | U.S. Bank National Association | Tranche C | ||
Offsetting Liabilities [Line Items] | ||
Real estate securities, available for sale, at fair value | 53,300 | 56,000 |
Commercial mortgage loans | ||
Offsetting Liabilities [Line Items] | ||
Gross Amounts of Recognized Liabilities | 257,664 | 206,239 |
Gross Amounts Offset on the Balance Sheet | 0 | 0 |
Net Amount of Liabilities Presented on the Balance Sheet | 257,664 | 206,239 |
Financial Instruments | 399,914 | 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 | 66,639 | 117,211 |
Gross Amounts Offset on the Balance Sheet | 0 | 0 |
Net Amount of Liabilities Presented on the Balance Sheet | 66,639 | 117,211 |
Financial Instruments | 102,358 | 171,071 |
Cash Collateral Pledged | 21 | 366 |
Net Amount | $ 0 | $ 0 |
Segment Reporting - Schedule of
Segment Reporting - Schedule of Segment Reporting Information, by Segment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | |||
Interest income | $ 79,404 | $ 59,393 | $ 15,466 |
Interest expense | 23,169 | 12,268 | 2,196 |
Realized loss on sale of real estate securities | 1,906 | 0 | 0 |
Realized gain on sale of commercial mortgage loan | 0 | 0 | 112 |
Net income | 29,990 | 24,933 | 5,415 |
Total assets | 1,248,125 | 1,282,484 | 514,220 |
Operating Segments | Real Estate Debt | |||
Segment Reporting Information [Line Items] | |||
Interest income | 73,884 | 56,040 | 14,733 |
Interest expense | 20,719 | 11,149 | 1,985 |
Realized loss on sale of real estate securities | 0 | ||
Realized gain on sale of commercial mortgage loan | 112 | ||
Net income | 29,797 | 24,401 | 5,209 |
Total assets | 1,198,806 | 1,150,858 | 463,526 |
Operating Segments | Real Estate Securities | |||
Segment Reporting Information [Line Items] | |||
Interest income | 5,520 | 3,353 | 733 |
Interest expense | 2,450 | 1,119 | 211 |
Realized loss on sale of real estate securities | 1,906 | ||
Realized gain on sale of commercial mortgage loan | 0 | ||
Net income | 193 | 532 | 206 |
Total assets | $ 49,319 | $ 131,626 | $ 50,694 |
Subsequent Events - Narrative (
Subsequent Events - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | Jan. 03, 2017 | Feb. 28, 2016 | Dec. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Jan. 31, 2017 |
Subsequent Event [Line Items] | |||||||
Distributions paid | $ 40,251 | $ 26,949 | $ 7,592 | ||||
Cash distributions | 40,300 | 26,900 | |||||
Common stock issued through distribution reinvestment plan | $ 25,047 | $ 20,161 | $ 5,027 | ||||
Shares issued under DRIP (in shares) | 2,094,291 | ||||||
Repurchase limit percent per fiscal semester | 2.50% | 2.50% | |||||
Subsequent Event | |||||||
Subsequent Event [Line Items] | |||||||
Distributions paid | $ 5,600 | ||||||
Cash distributions | 3,600 | ||||||
Common stock issued through distribution reinvestment plan | $ 2,000 | ||||||
Shares issued under DRIP (in shares) | 100,118 | ||||||
Number of shares authorized to be repurchased | 473,807 | ||||||
Average price per share authorized to be repurchased (usd per share) | $ 19.03 |
Schedule IV - Mortgage Loans66
Schedule IV - Mortgage Loans on Real Estate (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Mortgage Loans on Real Estate [Line Items] | ||
Carrying Amount | $ 1,048,737 | $ 1,125,089 |
First Mortgage | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | 1,077,237 | 1,134,446 |
Carrying Amount | 1,069,916 | |
First Mortgage | Retail | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | 154,684 | 158,784 |
First Mortgage | Retail | Senior 1 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | 7,460 | |
Carrying Amount | $ 7,448 | |
Interest Rate | 4.75% | |
First Mortgage | Retail | Senior 5 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | $ 14,600 | |
Carrying Amount | $ 14,563 | |
Interest Rate | 4.25% | |
First Mortgage | Retail | Senior 12 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | $ 9,850 | |
Carrying Amount | $ 9,822 | |
Interest Rate | 5.25% | |
First Mortgage | Retail | Senior 16 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | $ 4,725 | |
Carrying Amount | $ 4,698 | |
Interest Rate | 5.50% | |
First Mortgage | Retail | Senior 17 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | $ 25,247 | |
Carrying Amount | $ 25,144 | |
Interest Rate | 4.75% | |
First Mortgage | Retail | Senior 19 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | $ 7,500 | |
Carrying Amount | $ 7,459 | |
Interest Rate | 5.00% | |
First Mortgage | Retail | Senior 27 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | $ 9,450 | |
Carrying Amount | $ 9,438 | |
Interest Rate | 4.90% | |
First Mortgage | Retail | Senior 36 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | $ 11,800 | |
Carrying Amount | $ 11,780 | |
Interest Rate | 4.75% | |
First Mortgage | Retail | Senior 37 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | $ 13,500 | |
Carrying Amount | $ 13,491 | |
Interest Rate | 5.00% | |
First Mortgage | Retail | Senior 38 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | $ 11,684 | |
Carrying Amount | $ 11,646 | |
Interest Rate | 4.50% | |
First Mortgage | Retail | Senior 48 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | $ 26,905 | |
Carrying Amount | $ 26,889 | |
Interest Rate | 4.75% | |
First Mortgage | Retail | Mezzanine 7 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | $ 1,963 | |
Carrying Amount | $ 1,971 | |
Interest Rate | 13.00% | |
First Mortgage | Retail | Subordinate 1 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | $ 10,000 | |
Carrying Amount | $ 10,000 | |
Interest Rate | 11.00% | |
First Mortgage | Office | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | $ 340,944 | 307,876 |
First Mortgage | Office | Senior 2 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | 8,676 | |
Carrying Amount | $ 8,637 | |
Interest Rate | 4.65% | |
First Mortgage | Office | Senior 3 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | $ 38,750 | |
Carrying Amount | $ 38,560 | |
Interest Rate | 5.25% | |
First Mortgage | Office | Senior 4 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | $ 13,442 | |
Carrying Amount | $ 13,404 | |
Interest Rate | 4.75% | |
First Mortgage | Office | Senior 6 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | $ 19,979 | |
Carrying Amount | $ 19,952 | |
Interest Rate | 4.55% | |
First Mortgage | Office | Senior 9 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | $ 12,000 | |
Carrying Amount | $ 11,975 | |
Interest Rate | 4.75% | |
First Mortgage | Office | Senior 15 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | $ 33,734 | |
Carrying Amount | $ 33,645 | |
Interest Rate | 4.65% | |
First Mortgage | Office | Senior 20 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | $ 13,389 | |
Carrying Amount | $ 13,350 | |
Interest Rate | 5.00% | |
First Mortgage | Office | Senior 31 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | $ 27,413 | |
Carrying Amount | $ 27,305 | |
Interest Rate | 4.60% | |
First Mortgage | Office | Senior 34 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | $ 35,000 | |
Carrying Amount | $ 34,951 | |
Interest Rate | 5.00% | |
First Mortgage | Office | Senior 35 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | $ 6,290 | |
Carrying Amount | $ 6,287 | |
Interest Rate | 4.90% | |
First Mortgage | Office | Senior 40 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | $ 31,250 | |
Carrying Amount | $ 31,206 | |
Interest Rate | 4.50% | |
First Mortgage | Office | Senior 46 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | $ 28,489 | |
Carrying Amount | $ 28,435 | |
Interest Rate | 4.25% | |
First Mortgage | Office | Mezzanine 1 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | $ 5,000 | |
Carrying Amount | $ 5,060 | |
Interest Rate | 11.00% | |
First Mortgage | Office | Mezzanine 4 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | $ 16,447 | |
Carrying Amount | $ 16,447 | |
Interest Rate | 7.25% | |
First Mortgage | Office | Mezzanine 5 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | $ 7,000 | |
Carrying Amount | $ 7,019 | |
Interest Rate | 12.00% | |
First Mortgage | Office | Mezzanine 8 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | $ 5,085 | |
Carrying Amount | $ 5,085 | |
Interest Rate | 10.00% | |
First Mortgage | Office | Mezzanine 11 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | $ 10,000 | |
Carrying Amount | $ 10,000 | |
Interest Rate | 8.00% | |
First Mortgage | Office | Mezzanine 13 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | $ 10,000 | |
Carrying Amount | $ 9,528 | |
Interest Rate | 10.00% | |
First Mortgage | Office | Mezzanine 14 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | $ 10,000 | |
Carrying Amount | $ 9,388 | |
Interest Rate | 10.75% | |
First Mortgage | Office | Mezzanine 19 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | $ 9,000 | |
Carrying Amount | $ 8,821 | |
Interest Rate | 10.50% | |
First Mortgage | Multifamily | Senior 7 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | $ 17,959 | |
Carrying Amount | $ 17,892 | |
Interest Rate | 4.75% | |
First Mortgage | Multifamily | Senior 8 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | $ 14,730 | |
Carrying Amount | $ 14,680 | |
Interest Rate | 4.50% | |
First Mortgage | Multifamily | Senior 10 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | $ 23,784 | |
Carrying Amount | $ 23,732 | |
Interest Rate | 4.25% | |
First Mortgage | Multifamily | Senior 11 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | $ 9,130 | |
Carrying Amount | $ 9,097 | |
Interest Rate | 4.75% | |
First Mortgage | Multifamily | Senior 18 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | $ 43,083 | |
Carrying Amount | $ 42,985 | |
Interest Rate | 4.00% | |
First Mortgage | Multifamily | Senior 24 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | $ 18,941 | |
Carrying Amount | $ 18,897 | |
Interest Rate | 4.20% | |
First Mortgage | Multifamily | Senior 26 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | $ 42,943 | |
Carrying Amount | $ 42,768 | |
Interest Rate | 4.25% | |
First Mortgage | Multifamily | Senior 30 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | $ 8,850 | |
Carrying Amount | $ 8,828 | |
Interest Rate | 4.70% | |
First Mortgage | Multifamily | Senior 32 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | $ 8,016 | |
Carrying Amount | $ 7,996 | |
Interest Rate | 4.75% | |
First Mortgage | Multifamily | Senior 39 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | $ 18,075 | |
Carrying Amount | $ 18,033 | |
Interest Rate | 4.50% | |
First Mortgage | Multifamily | Senior 41 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | $ 26,195 | |
Carrying Amount | $ 26,109 | |
Interest Rate | 4.25% | |
First Mortgage | Multifamily | Senior 42 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | $ 29,940 | |
Carrying Amount | $ 29,970 | |
Interest Rate | 3.85% | |
First Mortgage | Multifamily | Senior 43 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | $ 10,920 | |
Carrying Amount | $ 10,930 | |
Interest Rate | 3.95% | |
First Mortgage | Multifamily | Senior 44 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | $ 13,120 | |
Carrying Amount | $ 13,133 | |
Interest Rate | 3.95% | |
First Mortgage | Multifamily | Senior 45 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | $ 5,894 | |
Carrying Amount | $ 5,899 | |
Interest Rate | 4.05% | |
First Mortgage | Multifamily | Senior 47 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | $ 14,336 | |
Carrying Amount | $ 14,303 | |
Interest Rate | 5.00% | |
First Mortgage | Multifamily | Senior 49 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | $ 10,807 | |
Carrying Amount | $ 10,793 | |
Interest Rate | 4.75% | |
First Mortgage | Multifamily | Mezzanine 9 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | $ 5,000 | |
Carrying Amount | $ 5,021 | |
Interest Rate | 9.00% | |
First Mortgage | Multifamily | Mezzanine 10 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | $ 3,480 | |
Carrying Amount | $ 3,494 | |
Interest Rate | 9.50% | |
First Mortgage | Multifamily | Mezzanine 12 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | $ 4,000 | |
Carrying Amount | $ 4,049 | |
Interest Rate | 12.00% | |
First Mortgage | Industrial | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | $ 52,688 | 52,107 |
First Mortgage | Industrial | Senior 13 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | 19,033 | |
Carrying Amount | $ 18,973 | |
Interest Rate | 4.25% | |
First Mortgage | Industrial | Senior 28 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | $ 33,655 | |
Carrying Amount | $ 33,635 | |
Interest Rate | 4.00% | |
First Mortgage | Hospitality | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | $ 143,582 | 171,752 |
First Mortgage | Hospitality | Senior 14 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | 10,350 | |
Carrying Amount | $ 10,307 | |
Interest Rate | 5.50% | |
First Mortgage | Hospitality | Senior 21 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | $ 11,482 | |
Carrying Amount | $ 11,468 | |
Interest Rate | 5.75% | |
First Mortgage | Hospitality | Senior 22 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | $ 14,625 | |
Carrying Amount | $ 14,584 | |
Interest Rate | 5.30% | |
First Mortgage | Hospitality | Senior 23 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | $ 14,193 | |
Carrying Amount | $ 14,092 | |
Interest Rate | 5.50% | |
First Mortgage | Hospitality | Senior 33 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | $ 16,800 | |
Carrying Amount | $ 16,773 | |
Interest Rate | 4.90% | |
First Mortgage | Hospitality | Mezzanine 2 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | $ 3,000 | |
Carrying Amount | $ 2,970 | |
Interest Rate | 11.00% | |
First Mortgage | Hospitality | Mezzanine 3 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | $ 11,000 | |
Carrying Amount | $ 11,000 | |
Interest Rate | 7.05% | |
First Mortgage | Hospitality | Mezzanine 6 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | $ 12,000 | |
Carrying Amount | $ 12,000 | |
Interest Rate | 9.00% | |
First Mortgage | Hospitality | Mezzanine 15 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | $ 7,140 | |
Carrying Amount | $ 6,584 | |
Interest Rate | 10.00% | |
First Mortgage | Hospitality | Mezzanine 16 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | $ 3,900 | |
Carrying Amount | $ 3,596 | |
Interest Rate | 10.00% | |
First Mortgage | Hospitality | Mezzanine 17 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | $ 12,510 | |
Carrying Amount | $ 11,536 | |
Interest Rate | 10.00% | |
First Mortgage | Hospitality | Mezzanine 18 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | $ 8,050 | |
Carrying Amount | $ 7,423 | |
Interest Rate | 10.00% | |
First Mortgage | Hospitality | Mezzanine 20 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | $ 6,182 | |
Carrying Amount | $ 4,667 | |
Interest Rate | 5.50% | |
First Mortgage | Hospitality | Mezzanine 21 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | $ 12,350 | |
Carrying Amount | $ 12,350 | |
Interest Rate | 10.00% | |
First Mortgage | Mixed Use | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | $ 56,136 | $ 138,798 |
First Mortgage | Mixed Use | Senior 25 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | 10,901 | |
Carrying Amount | $ 10,874 | |
Interest Rate | 5.10% | |
First Mortgage | Mixed Use | Senior 29 | ||
Mortgage Loans on Real Estate [Line Items] | ||
Face Amount | $ 45,235 | |
Carrying Amount | $ 45,071 | |
Interest Rate | 5.50% |
Schedule IV - Mortgage Loans67
Schedule IV - Mortgage Loans on Real Estate Phantom (Details) - First Mortgage | Dec. 31, 2016 |
Office | Senior 2 | |
Mortgage Loans on Real Estate [Line Items] | |
Interest Rate | 4.65% |
Office | Senior 3 | |
Mortgage Loans on Real Estate [Line Items] | |
Interest Rate | 5.25% |
Office | Senior 4 | |
Mortgage Loans on Real Estate [Line Items] | |
Interest Rate | 4.75% |
Office | Senior 6 | |
Mortgage Loans on Real Estate [Line Items] | |
Interest Rate | 4.55% |
Office | Senior 9 | |
Mortgage Loans on Real Estate [Line Items] | |
Interest Rate | 4.75% |
Office | Senior 15 | |
Mortgage Loans on Real Estate [Line Items] | |
Interest Rate | 4.65% |
Office | Senior 20 | |
Mortgage Loans on Real Estate [Line Items] | |
Interest Rate | 5.00% |
Office | Senior 31 | |
Mortgage Loans on Real Estate [Line Items] | |
Interest Rate | 4.60% |
Office | Senior 34 | |
Mortgage Loans on Real Estate [Line Items] | |
Interest Rate | 5.00% |
Office | Senior 35 | |
Mortgage Loans on Real Estate [Line Items] | |
Interest Rate | 4.90% |
Office | Senior 40 | |
Mortgage Loans on Real Estate [Line Items] | |
Interest Rate | 4.50% |
Office | Senior 46 | |
Mortgage Loans on Real Estate [Line Items] | |
Interest Rate | 4.25% |
Office | Mezzanine 1 | |
Mortgage Loans on Real Estate [Line Items] | |
Interest Rate | 11.00% |
Office | Mezzanine 4 | |
Mortgage Loans on Real Estate [Line Items] | |
Interest Rate | 7.25% |
Office | Mezzanine 5 | |
Mortgage Loans on Real Estate [Line Items] | |
Interest Rate | 12.00% |
Office | Mezzanine 8 | |
Mortgage Loans on Real Estate [Line Items] | |
Interest Rate | 10.00% |
Office | Mezzanine 11 | |
Mortgage Loans on Real Estate [Line Items] | |
Interest Rate | 8.00% |
Office | Mezzanine 13 | |
Mortgage Loans on Real Estate [Line Items] | |
Interest Rate | 10.00% |
Office | Mezzanine 14 | |
Mortgage Loans on Real Estate [Line Items] | |
Interest Rate | 10.75% |
Office | Mezzanine 19 | |
Mortgage Loans on Real Estate [Line Items] | |
Interest Rate | 10.50% |
Retail | Senior 1 | |
Mortgage Loans on Real Estate [Line Items] | |
Interest Rate | 4.75% |
Retail | Senior 5 | |
Mortgage Loans on Real Estate [Line Items] | |
Interest Rate | 4.25% |
Retail | Senior 12 | |
Mortgage Loans on Real Estate [Line Items] | |
Interest Rate | 5.25% |
Retail | Senior 16 | |
Mortgage Loans on Real Estate [Line Items] | |
Interest Rate | 5.50% |
Retail | Senior 17 | |
Mortgage Loans on Real Estate [Line Items] | |
Interest Rate | 4.75% |
Retail | Senior 19 | |
Mortgage Loans on Real Estate [Line Items] | |
Interest Rate | 5.00% |
Retail | Senior 27 | |
Mortgage Loans on Real Estate [Line Items] | |
Interest Rate | 4.90% |
Retail | Senior 36 | |
Mortgage Loans on Real Estate [Line Items] | |
Interest Rate | 4.75% |
Retail | Senior 37 | |
Mortgage Loans on Real Estate [Line Items] | |
Interest Rate | 5.00% |
Retail | Senior 38 | |
Mortgage Loans on Real Estate [Line Items] | |
Interest Rate | 4.50% |
Retail | Senior 48 | |
Mortgage Loans on Real Estate [Line Items] | |
Interest Rate | 4.75% |
Retail | Mezzanine 7 | |
Mortgage Loans on Real Estate [Line Items] | |
Interest Rate | 13.00% |
Retail | Subordinate 1 | |
Mortgage Loans on Real Estate [Line Items] | |
Interest Rate | 11.00% |
Mixed Use | Senior 25 | |
Mortgage Loans on Real Estate [Line Items] | |
Interest Rate | 5.10% |
Mixed Use | Senior 29 | |
Mortgage Loans on Real Estate [Line Items] | |
Interest Rate | 5.50% |
Multifamily | Senior 7 | |
Mortgage Loans on Real Estate [Line Items] | |
Interest Rate | 4.75% |
Multifamily | Senior 8 | |
Mortgage Loans on Real Estate [Line Items] | |
Interest Rate | 4.50% |
Multifamily | Senior 10 | |
Mortgage Loans on Real Estate [Line Items] | |
Interest Rate | 4.25% |
Multifamily | Senior 11 | |
Mortgage Loans on Real Estate [Line Items] | |
Interest Rate | 4.75% |
Multifamily | Senior 18 | |
Mortgage Loans on Real Estate [Line Items] | |
Interest Rate | 4.00% |
Multifamily | Senior 24 | |
Mortgage Loans on Real Estate [Line Items] | |
Interest Rate | 4.20% |
Multifamily | Senior 26 | |
Mortgage Loans on Real Estate [Line Items] | |
Interest Rate | 4.25% |
Multifamily | Senior 30 | |
Mortgage Loans on Real Estate [Line Items] | |
Interest Rate | 4.70% |
Multifamily | Senior 32 | |
Mortgage Loans on Real Estate [Line Items] | |
Interest Rate | 4.75% |
Multifamily | Senior 39 | |
Mortgage Loans on Real Estate [Line Items] | |
Interest Rate | 4.50% |
Multifamily | Senior 41 | |
Mortgage Loans on Real Estate [Line Items] | |
Interest Rate | 4.25% |
Multifamily | Senior 42 | |
Mortgage Loans on Real Estate [Line Items] | |
Interest Rate | 3.85% |
Multifamily | Senior 43 | |
Mortgage Loans on Real Estate [Line Items] | |
Interest Rate | 3.95% |
Multifamily | Senior 44 | |
Mortgage Loans on Real Estate [Line Items] | |
Interest Rate | 3.95% |
Multifamily | Senior 45 | |
Mortgage Loans on Real Estate [Line Items] | |
Interest Rate | 4.05% |
Multifamily | Senior 47 | |
Mortgage Loans on Real Estate [Line Items] | |
Interest Rate | 5.00% |
Multifamily | Senior 49 | |
Mortgage Loans on Real Estate [Line Items] | |
Interest Rate | 4.75% |
Multifamily | Mezzanine 9 | |
Mortgage Loans on Real Estate [Line Items] | |
Interest Rate | 9.00% |
Multifamily | Mezzanine 10 | |
Mortgage Loans on Real Estate [Line Items] | |
Interest Rate | 9.50% |
Multifamily | Mezzanine 12 | |
Mortgage Loans on Real Estate [Line Items] | |
Interest Rate | 12.00% |
Industrial | Senior 13 | |
Mortgage Loans on Real Estate [Line Items] | |
Interest Rate | 4.25% |
Industrial | Senior 28 | |
Mortgage Loans on Real Estate [Line Items] | |
Interest Rate | 4.00% |
Hospitality | Senior 14 | |
Mortgage Loans on Real Estate [Line Items] | |
Interest Rate | 5.50% |
Hospitality | Senior 21 | |
Mortgage Loans on Real Estate [Line Items] | |
Interest Rate | 5.75% |
Hospitality | Senior 22 | |
Mortgage Loans on Real Estate [Line Items] | |
Interest Rate | 5.30% |
Hospitality | Senior 23 | |
Mortgage Loans on Real Estate [Line Items] | |
Interest Rate | 5.50% |
Hospitality | Senior 33 | |
Mortgage Loans on Real Estate [Line Items] | |
Interest Rate | 4.90% |
Hospitality | Mezzanine 2 | |
Mortgage Loans on Real Estate [Line Items] | |
Interest Rate | 11.00% |
Hospitality | Mezzanine 3 | |
Mortgage Loans on Real Estate [Line Items] | |
Interest Rate | 7.05% |
Hospitality | Mezzanine 6 | |
Mortgage Loans on Real Estate [Line Items] | |
Interest Rate | 9.00% |
Hospitality | Mezzanine 15 | |
Mortgage Loans on Real Estate [Line Items] | |
Interest Rate | 10.00% |
Hospitality | Mezzanine 16 | |
Mortgage Loans on Real Estate [Line Items] | |
Interest Rate | 10.00% |
Hospitality | Mezzanine 17 | |
Mortgage Loans on Real Estate [Line Items] | |
Interest Rate | 10.00% |
Hospitality | Mezzanine 18 | |
Mortgage Loans on Real Estate [Line Items] | |
Interest Rate | 10.00% |
Hospitality | Mezzanine 20 | |
Mortgage Loans on Real Estate [Line Items] | |
Interest Rate | 5.50% |
Hospitality | Mezzanine 21 | |
Mortgage Loans on Real Estate [Line Items] | |
Interest Rate | 10.00% |