Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Jun. 30, 2014 | Feb. 27, 2015 | |
Entity Registrant Name | Ladder Capital Corp | ||
Entity Central Index Key | 1577670 | ||
Current Fiscal Year End Date | -19 | ||
Entity Filer Category | Non-accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | FALSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $527,913,713 | ||
Class A common stock | |||
Entity Common Stock, Shares Outstanding | 51,958,908 | ||
Class B common stock | |||
Entity Common Stock, Shares Outstanding | 47,645,132 |
Combined_Consolidated_Balance_
Combined Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Assets | ||
Cash and cash equivalents | $76,217,974 | $78,742,257 |
Cash collateral held by broker | 42,437,628 | 28,520,788 |
Mortgage loan receivables held for investment, net, at amortized cost | 1,521,053,375 | 539,078,182 |
Mortgage loan receivables held for sale | 417,954,757 | 440,489,789 |
Real estate securities, available for sale | 2,815,565,541 | 1,657,246,194 |
Real estate and related lease intangibles, net | 768,986,193 | 624,219,015 |
Investments in unconsolidated joint ventures | 6,041,333 | 9,262,762 |
FHLB stock | 72,340,000 | 49,450,000 |
Derivative instruments | 423,501 | 8,244,355 |
Due from brokers | 4,276 | 1,503 |
Accrued interest receivable | 24,657,842 | 14,971,167 |
Other assets | 77,978,540 | 38,837,255 |
Total assets | 5,823,660,960 | 3,489,063,267 |
Liabilities | ||
Repurchase agreements | 1,431,665,681 | 609,834,793 |
Borrowings under credit agreement | 11,000,000 | 0 |
Borrowings under credit and security agreement | 46,750,000 | 0 |
Revolving credit facility | 25,000,000 | 0 |
Mortgage loan financing | 447,409,690 | 291,053,406 |
Borrowings from the FHLB | 1,611,000,000 | 989,000,000 |
Senior unsecured notes | 619,555,000 | 325,000,000 |
Derivative instruments | 13,445,518 | 7,031,033 |
Amount payable pursuant to tax receivable agreement | 861,929 | 0 |
Accrued expenses | 91,992,748 | 64,400,382 |
Other liabilities | 19,773,894 | 17,509,888 |
Total liabilities | 4,318,454,460 | 2,303,829,502 |
Commitments and contingencies | 0 | 0 |
Equity (Capital) | ||
Common units | 0 | 59,565,278 |
Additional paid-in capital | 725,538,375 | 0 |
Retained earnings | 44,186,678 | 0 |
Accumulated other comprehensive income | 15,655,778 | 0 |
Total shareholders' equity (partners' capital) | 785,432,262 | 1,176,397,231 |
Noncontrolling interest in operating partnership | 711,673,727 | 0 |
Noncontrolling interest in consolidated joint ventures | 8,100,511 | 8,836,534 |
Total equity (capital) | 1,505,206,500 | 1,185,233,765 |
Total liabilities and equity (capital) | 5,823,660,960 | 3,489,063,267 |
Class A common stock | ||
Equity (Capital) | ||
Common stock value | 51,431 | 0 |
Total equity (capital) | 51,431 | |
Class B common stock | ||
Equity (Capital) | ||
Common stock value | 0 | 0 |
Series A preferred units | ||
Equity (Capital) | ||
Preferred units | 0 | 825,985,422 |
Series B preferred units | ||
Equity (Capital) | ||
Preferred units | $0 | $290,846,531 |
Combined_Consolidated_Balance_1
Combined Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 |
Class A common stock | |
Common stock, par value per share (in dollars per share) | $0.00 |
Common stock, authorized shares | 600,000,000 |
Common stock, issued shares | 51,431,872 |
Common stock, outstanding shares | 51,431,872 |
Class B common stock | |
Common stock, no par value (in dollars per share) | |
Common stock, authorized shares | 100,000,000 |
Common stock, issued shares | 47,647,023 |
Common stock, outstanding shares | 47,647,023 |
Combined_Consolidated_Statemen
Combined Consolidated Statements of Income (USD $) | 3 Months Ended | 12 Months Ended | 11 Months Ended | |||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | |
Net interest income | ||||||||||||
Interest income | $56,931,000 | $48,459,000 | $45,112,000 | $36,822,000 | $30,516,000 | $29,633,000 | $30,168,000 | $31,261,000 | $187,325,020 | $121,577,676 | $136,198,204 | |
Interest expense | 77,574,167 | 48,744,659 | 36,440,373 | |||||||||
Net interest income | 109,750,853 | 72,833,017 | 99,757,831 | |||||||||
Provision for loan losses | 600,000 | 600,000 | 448,833 | |||||||||
Net interest income after provision for loan losses | 30,728,000 | 28,381,000 | 28,211,000 | 21,831,000 | 17,324,000 | 16,929,000 | 18,076,000 | 19,904,000 | 109,150,853 | 72,233,017 | 99,308,998 | |
Other income | ||||||||||||
Operating lease income | 56,649,278 | 37,394,416 | 8,331,338 | |||||||||
Tenant recoveries | 9,182,952 | 3,271,095 | 0 | |||||||||
Sale of loans, net | 145,274,603 | 146,708,264 | 151,661,150 | |||||||||
Gain (loss) on securities | 26,977,268 | 4,230,953 | 19,013,960 | |||||||||
Unrealized gain (loss) on Agency interest-only securities | 2,143,765 | -2,665,188 | -5,680,893 | |||||||||
Sale of real estate, net | 29,760,115 | 13,565,164 | 1,275,235 | |||||||||
Fee income | 11,703,791 | 7,921,430 | 8,787,695 | |||||||||
Net result from derivative transactions | -94,797,755 | 28,075,232 | -35,650,989 | |||||||||
Earnings from investment in unconsolidated joint ventures | 1,990,117 | 3,203,358 | 1,256,109 | |||||||||
Gain on assignment of mortgage loan financing | 431,465 | 0 | 0 | |||||||||
Loss on extinguishment of debt | -149,738 | 0 | 0 | |||||||||
Total other income | 31,906,000 | 61,337,000 | 55,489,000 | 40,434,000 | 36,227,000 | 35,525,000 | 70,346,000 | 99,606,000 | 189,165,861 | 241,704,724 | 148,993,605 | |
Costs and expenses | ||||||||||||
Salaries and employee benefits | 82,143,674 | 61,038,260 | 51,090,424 | |||||||||
Operating expenses | 25,397,672 | 14,937,488 | 9,571,881 | |||||||||
Real estate operating expenses | 32,670,045 | 17,403,945 | 0 | |||||||||
Real estate acquisition costs | 2,403,450 | 3,625,773 | 5,797,213 | |||||||||
Fee expense | 3,023,409 | 2,954,839 | 6,164,187 | |||||||||
Depreciation and amortization | 28,447,437 | 21,514,572 | 3,640,619 | |||||||||
Total costs and expenses | 48,045,000 | 42,207,000 | 45,258,000 | 38,575,000 | 33,528,000 | 30,603,000 | 27,951,000 | 29,393,000 | 174,085,687 | 121,474,877 | 76,264,324 | |
Income before taxes | 14,589,000 | 47,511,000 | 38,442,000 | 23,690,000 | 20,023,000 | 21,851,000 | 60,471,000 | 90,117,000 | 124,231,027 | 192,462,864 | 172,038,279 | |
Income tax expense | 26,604,776 | 3,729,778 | 2,583,999 | |||||||||
Net income | 11,806,000 | 37,176,000 | 30,243,000 | 18,401,000 | 19,744,000 | 21,187,000 | 59,752,000 | 88,050,000 | 97,626,251 | 188,733,086 | 169,454,280 | |
Net loss attributable to noncontrolling interest in consolidated joint ventures | -83,000 | 306,000 | -46,000 | 192,000 | 1,796,000 | -1,025,000 | 354,000 | -27,000 | 368,670 | 1,098,150 | 49,084 | |
Net loss attributable to predecessor unitholders | 0 | 0 | 0 | 12,628,000 | 21,540,000 | 20,162,000 | 60,107,000 | 88,023,000 | 12,628,031 | 189,831,236 | 169,503,364 | |
Net (income) attributable to noncontrolling interest in operating partnership | -7,350,000 | -22,827,000 | -17,691,000 | -18,568,000 | -66,436,274 | |||||||
Net income attributable to Class A common shareholders | 4,374,000 | 14,656,000 | 12,505,000 | 12,652,000 | 44,186,678 | |||||||
Earnings per share/common unit: | ||||||||||||
Basic (in dollars per share) | $0.09 | $0.30 | $0.26 | $0.26 | ||||||||
Diluted (in dollars per share) | $0.09 | $0.28 | $0.22 | $0.24 | ||||||||
Weighted average shares outstanding: | ||||||||||||
Basic (in shares) | 49,296,417 | |||||||||||
Diluted (in shares) | 97,583,310 | |||||||||||
Class A Common Stock | ||||||||||||
Costs and expenses | ||||||||||||
Net income attributable to Class A common shareholders | $44,186,678 | $44,187,000 | ||||||||||
Earnings per share/common unit: | ||||||||||||
Basic (in dollars per share) | $0.90 | $0.90 | ||||||||||
Diluted (in dollars per share) | $0.86 | $0.86 | ||||||||||
Weighted average shares outstanding: | ||||||||||||
Basic (in shares) | 49,296,417 | |||||||||||
Diluted (in shares) | 97,583,310 |
Combined_Consolidated_Statemen1
Combined Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | |||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||||
Net income | $97,626,251 | $188,733,086 | $169,454,280 | |||
Unrealized gains on securities, net of tax: | ||||||
Unrealized gain (loss) on real estate securities, available for sale | 43,178,789 | [1] | -16,130,332 | [1] | 29,014,769 | [1] |
Reclassification adjustment for (gains) losses included in net income | -25,162,383 | [2] | -4,230,953 | [2] | -19,013,960 | [2] |
Total other comprehensive income (loss) | 18,016,406 | -20,361,285 | 10,000,809 | |||
Comprehensive income | 115,642,657 | 168,371,801 | 179,455,089 | |||
Comprehensive loss attributable to noncontrolling interest in consolidated joint ventures | 368,670 | 1,098,150 | 49,084 | |||
Comprehensive income of combined Class A common shareholders and Predecessor unit holders | 116,011,327 | 169,469,951 | 179,504,173 | |||
Comprehensive (income) attributable to predecessor unitholders | -4,379,909 | |||||
Comprehensive (income) attributable to noncontrolling interest in operating partnership | -66,956,592 | |||||
Class A Common Stock | ||||||
Unrealized gains on securities, net of tax: | ||||||
Comprehensive income attributable to Class A common shareholders | $44,674,826 | |||||
[1] | Amounts are net of provision for income taxes of $5,754,159 for the year ended December 31, 2014 and none for the years ended 2013 and 2012. | |||||
[2] | Amounts are net of (provision for) income taxes of $(5,754,159) for the year ended December 31, 2014 and none for the years ended 2013 and 2012. |
Combined_Consolidated_Statemen2
Combined Consolidated Statements of Comprehensive Income (Parenthetical) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Statement of Comprehensive Income [Abstract] | |||
Unrealized gain (loss) on securities, tax | $5,754,159 | $0 | $0 |
Reclassification adjustment for unrealized gains on securities, tax | ($5,754,159) | $0 | $0 |
Combined_Consolidated_Statemen3
Combined Consolidated Statements of Changes in Equity/Capital (USD $) | Total | Additional Paid-in-Capital | Retained Earnings | Accumulated Other Comprehensive Income | Noncontrolling Interests Operating Partnership | Noncontrolling Interests Consolidated Joint Ventures | Class A Common Stock | Class B Common Stock | Preferred Units | Preferred Units | Common Units | LP Units | Noncontrolling Interests Consolidated Joint Ventures |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Series A preferred units | Series B Preferred Units | USD ($) | USD ($) | USD ($) | ||
USD ($) | USD ($) | ||||||||||||
Beginning Balance at Dec. 31, 2012 | $1,098,270,215 | $781,100,600 | $272,215,202 | $44,372,247 | $582,166 | ||||||||
Increase (Decrease) in Partners' Capital | |||||||||||||
Contributions | 11,645,654 | 1,800,000 | 9,845,654 | ||||||||||
Distributions | -95,935,352 | -58,092,429 | -18,333,605 | -19,016,182 | -493,136 | ||||||||
Equity based compensation | 2,881,447 | 2,428,078 | 453,369 | ||||||||||
Net income (loss) | 188,733,086 | 115,349,646 | 36,670,087 | 37,811,503 | -1,098,150 | ||||||||
Other comprehensive income | -20,361,285 | -12,372,395 | -3,933,231 | -4,055,659 | |||||||||
Ending Balance at Dec. 31, 2013 | 1,185,233,765 | ||||||||||||
Ending Balance at Dec. 31, 2013 | 1,185,233,765 | 825,985,422 | 290,846,531 | 59,565,278 | 8,836,534 | ||||||||
Beginning Balance at Dec. 31, 2011 | 989,062,403 | 707,847,217 | 257,376,700 | 23,713,486 | 125,000 | ||||||||
Increase (Decrease) in Partners' Capital | |||||||||||||
Contributions | 3,521,875 | 3,000,000 | 521,875 | ||||||||||
Distributions | -76,176,925 | -58,396,459 | -2,529,456 | -15,235,385 | -15,625 | ||||||||
Equity based compensation | 2,407,773 | 1,892,473 | 515,300 | ||||||||||
Net income (loss) | 169,454,280 | 124,315,166 | 11,780,432 | 33,407,766 | -49,084 | ||||||||
Other comprehensive income | 10,000,809 | 7,334,676 | 695,053 | 1,971,080 | |||||||||
Ending Balance at Dec. 31, 2012 | 1,098,270,215 | 781,100,600 | 272,215,202 | 44,372,247 | 582,166 | ||||||||
Beginning Balance at Dec. 31, 2013 | 1,185,233,765 | 825,985,422 | 290,846,531 | 59,565,278 | |||||||||
Increase (Decrease) in Partners' Capital | |||||||||||||
Contributions | 1,840,772 | 1,840,772 | |||||||||||
Distributions | -50,502,882 | -47,925,774 | -2,208,125 | -368,983 | |||||||||
Equity based compensation | 14,450,764 | 332,036 | 13,828,557 | 290,171 | |||||||||
Net income (loss) | 97,626,251 | 44,186,678 | 66,436,274 | -368,670 | -7,471,541 | -2,630,884 | -2,525,606 | ||||||
Other comprehensive income | 18,016,406 | 488,148 | 520,318 | 10,062,972 | 3,543,380 | 3,401,588 | |||||||
Increase Decrease in Stockholders' Equity | |||||||||||||
Issuance of common stock (IPO) | 259,037,500 | 259,020,575 | 16,925 | ||||||||||
Issuance of common stock (IPO) (in shares) | 16,925,013 | ||||||||||||
Shares acquired to satisfy minimum required federal and state tax withholding on vesting restricted stock | -124,723 | -124,723 | |||||||||||
Shares acquired to satisfy minimum required federal and state tax withholding on vesting restricted stock | -9,612 | ||||||||||||
Forfeitures (in shares) | -39,707 | -6,405 | |||||||||||
Forfeitures | 40 | -40 | |||||||||||
Offering costs | -20,523,458 | -20,523,458 | |||||||||||
Reorganization transactions (in shares) | -828,576,853 | -291,680,215 | -60,441,260 | 1,180,698,328 | |||||||||
Exchange of capital for common stock | 468,694,353 | 14,873,621 | 33,672 | -483,601,646 | |||||||||
Exchange of capital for common stock (in shares) | 33,672,192 | ||||||||||||
Exchange of predecessor LP Units for common stock | 697,096,682 | -697,096,682 | |||||||||||
Exchange of predecessor LP Units for common stock (in shares) | 48,537,414 | ||||||||||||
Exchange of noncontrolling interest for common stock | 0 | 12,502,429 | 324,562 | -12,827,865 | 874 | ||||||||
Exchange of noncontrolling interest for common stock (in shares) | 874,374 | -874,374 | |||||||||||
Adjustment to tax receivable agreement as a result of the exchange of Class B shares | 152,105 | 152,105 | |||||||||||
Rebalancing of ownership percentage between Company and Operating Partnership | -5,329,742 | 5,360,295 | -30,553 | -5,329,742 | |||||||||
Ending Balance at Dec. 31, 2014 | 1,505,206,500 | 725,538,375 | 44,186,678 | 15,655,778 | 711,673,727 | 8,100,511 | 51,431 | ||||||
Ending Balance at Dec. 31, 2014 | $0 | $0 | $0 | ||||||||||
Ending Balance (in shares) at Dec. 31, 2014 | 51,431,872 | 47,647,023 |
Combined_Consolidated_Statemen4
Combined Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Cash flows from operating activities: | |||
Net income | $97,626,251 | $188,733,086 | $169,454,280 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Loss on extinguishment of debt | 149,738 | 0 | 0 |
Depreciation and amortization | 28,447,437 | 21,514,572 | 3,640,619 |
Unrealized (gain) loss on derivative instruments | 14,378,350 | -14,013,966 | -12,694,838 |
Unrealized (gain) loss on Agency interest-only securities | -2,143,765 | 2,665,188 | 5,680,893 |
Provision for loan losses | 600,000 | 600,000 | 448,833 |
Amortization of equity based compensation | 14,450,764 | 2,881,447 | 2,407,773 |
Amortization of deferred financing costs included in interest expense | 5,802,023 | 4,599,566 | 3,133,910 |
Amortization of premium on mortgage loan financing | -629,022 | -533,818 | 0 |
Amortization of above- and below-market lease intangibles | 652,068 | 853,917 | 0 |
Accretion/amortization of discount, premium and other fees on loans | -6,917,666 | -3,700,972 | -2,878,027 |
Accretion/amortization of discount, premium and other fees on loans | 91,306,499 | 60,320,720 | 38,212,269 |
Realized gain on sale of mortgage loan receivables held for sale | -145,274,603 | -146,708,264 | -151,661,150 |
Realized gain on real estate securities | -26,977,268 | -4,230,953 | -19,013,960 |
Realized gain on sale of real estate, net | -29,760,115 | -13,565,164 | -1,275,235 |
Realized gain on assignment of mortgage loan financing | -431,465 | 0 | 0 |
Origination of mortgage loan receivables held for sale | -3,345,371,937 | -2,013,674,038 | -2,036,138,933 |
Repayment of mortgage loan receivables held for sale | 1,293,262 | 5,840,419 | 75,654,634 |
Proceeds from sales of mortgage loan receivables held for sale | 3,523,688,310 | 2,345,704,987 | 1,815,995,772 |
Accrued interest receivable | -9,686,675 | -2,888,563 | -318,080 |
Earnings on investment in unconsolidated joint ventures | -1,990,117 | -3,203,358 | -1,256,109 |
Distributions from operations of investment in unconsolidated joint ventures | 1,956,695 | 3,894,303 | 1,403,687 |
Deferred tax asset | -7,174,519 | 0 | 0 |
Changes in operating assets and liabilities: | |||
Due to brokers | 0 | 0 | -871,802 |
Due from brokers | -2,773 | 1,900,210 | -1,683,023 |
Other assets | -17,446,270 | -17,324,779 | -5,890,951 |
Accrued expenses and other liabilities | 22,126,726 | 57,317,794 | 1,642,506 |
Net cash provided by (used in) operating activities | 208,671,928 | 476,982,334 | -116,006,932 |
Cash flows used in investing activities: | |||
Reduction (addition) of cash collateral held by broker for derivatives | -13,864,015 | -10,248,883 | 4,640,186 |
Acquisition of fixed assets | 0 | 0 | -351,041 |
Purchase of derivative instruments | -7,125 | -20,000 | -226,225 |
Purchases of real estate securities | -2,157,391,381 | -1,193,816,283 | -425,796,393 |
Repayment of real estate securities | 186,310,306 | 390,628,250 | 951,150,951 |
Proceeds from sales of real estate securities | 768,592,668 | 192,387,118 | 279,275,981 |
Purchase of FHLB stock | -22,890,000 | -36,350,000 | -13,100,000 |
Origination and purchases of mortgage loan receivables held for investment | -1,201,968,254 | -486,072,238 | -341,947,392 |
Repayment of mortgage loan receivables held for investment | 214,510,727 | 268,093,305 | 204,913,202 |
Reduction (addition) of cash collateral held by broker | -52,825 | 45,718,663 | -14,351,720 |
Addition of deposits received for loan originations | -91,277 | 0 | 0 |
Security deposits included in other assets | -9,620,677 | -4,356,098 | 0 |
Capital contributions to investment in unconsolidated joint ventures | 0 | -4,696,405 | -9,265,125 |
Distributions of return of capital from investment in unconsolidated joint ventures | 3,254,851 | 7,417,350 | 6,169,025 |
Purchases of real estate | -254,497,447 | -289,268,442 | -428,651,275 |
Capital improvements of real estate | -5,192,043 | -114,670 | 0 |
Proceeds from sale of real estate | 123,443,538 | 36,929,752 | 75,646,240 |
Net cash provided by (used in) investing activities | -2,369,462,954 | -1,083,768,581 | 288,106,414 |
Cash flows from financing activities: | |||
Deferred financing costs | -9,863,387 | -3,190,379 | -10,599,987 |
Proceeds from repurchase agreements | 10,583,728,059 | 4,382,307,842 | 11,348,169,066 |
Repayment of repurchase agreements | -9,761,897,171 | -4,566,389,752 | -12,151,329,521 |
Proceeds from borrowings under credit agreements | 69,125,000 | 30,000,000 | 0 |
Repayment of borrowings under credit agreements | -58,125,000 | -30,000,000 | 0 |
Proceeds from borrowings under credit and security agreement | 46,750,000 | 0 | 0 |
Proceeds from revolving credit facility | 250,000,000 | 0 | 0 |
Repayment of revolving credit facility | -225,000,000 | 0 | 0 |
Proceeds from mortgage loan financing | 188,032,984 | 185,037,648 | 88,180,203 |
Repayment of mortgage loan financing | -30,616,213 | -125,722 | -36,740 |
Proceeds from FHLB borrowings | 5,448,000,000 | 4,498,500,000 | 362,000,000 |
Repayments of FHLB borrowings | -4,826,000,000 | -3,771,500,000 | -100,000,000 |
Proceeds from Notes issued | 300,000,000 | 0 | 325,000,000 |
Retirement of Notes issued | -5,594,738 | 0 | 0 |
Partnersb capital contributions | 0 | 1,800,000 | 3,000,000 |
Partnersb capital distributions | -368,983 | -95,442,216 | -76,161,300 |
Capital distributed to noncontrolling interests in operating partnership | -47,925,774 | 0 | 0 |
Capital contributed by noncontrolling interests in consolidated joint ventures | 1,840,772 | 9,845,654 | 521,875 |
Capital distributed to noncontrolling interests in consolidated joint ventures | -2,208,125 | -493,136 | -15,625 |
Shares acquired to satisfy minimum required federal and state tax withholding on vesting restricted stock | -124,723 | 0 | 0 |
Issuance of common stock | 259,037,500 | 0 | 0 |
Common stock offering costs | -20,523,458 | 0 | 0 |
Net cash provided by (used in) financing activities | 2,158,266,743 | 640,349,939 | -211,272,029 |
Net increase (decrease) in cash | -2,524,283 | 33,563,692 | -39,172,547 |
Cash and cash equivalents at beginning of period | 78,742,257 | 45,178,565 | 84,351,112 |
Cash and cash equivalents at end of period | 76,217,974 | 78,742,257 | 45,178,565 |
Supplemental information: | |||
Cash paid for interest | 63,170,972 | 45,317,028 | 27,179,564 |
Cash paid for income taxes | 45,980,543 | 5,392,411 | 589,042 |
Supplemental disclosure of non-cash investing activities: | |||
Transfer from mortgage loan receivables held for investment, at amortized cost to mortgage loan receivable held for sale | 11,800,000 | 8,320,273 | 0 |
Transfer from real estate and related lease intangibles, net to real estate held for sale | 19,321,610 | 0 | 0 |
Supplemental disclosure of non-cash financing activities: | |||
Exchange of capital for common stock | 468,694,353 | 0 | 0 |
Exchange of predecessor LP Units for common stock | 697,096,682 | 0 | 0 |
Change in deferred tax asset related to change in tax receivable agreement | 1,014,034 | 0 | 0 |
Increase in amount payable pursuant to tax receivable agreement | 861,929 | 0 | 0 |
Rebalancing of ownership percentage between Company and Operating Partnership | $5,329,742 | $0 | $0 |
ORGANIZATION_AND_OPERATIONS
ORGANIZATION AND OPERATIONS | 12 Months Ended | |
Dec. 31, 2014 | ||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
ORGANIZATION AND OPERATIONS | 1. ORGANIZATION AND OPERATIONS | |
The IPO Transactions | ||
Ladder Capital Corp was formed as a Delaware corporation on May 21, 2013. The Company conducted an initial public offering (“IPO”) which closed on February 11, 2014. The Company used the net proceeds from the IPO to purchase newly issued limited partnership units (“LP Units”) from Ladder Capital Finance Holdings LLLP (“LCFH”, “Predecessor” or the “Operating Partnership”). In connection with the IPO, Ladder Capital Corp also became a holding corporation and the general partner of, and obtained a controlling interest in, LCFH. Ladder Capital Corp’s only business is to act as the general partner of LCFH, and, as such, Ladder Capital Corp indirectly operates and controls all of the business and affairs of LCFH and its subsidiaries through its ability to appoint the LCFH board. The proceeds received by LCFH in connection with the sale of newly issued LP Units have been and will be used for loan origination, real estate businesses and for general corporate purposes. | ||
Ladder Capital Corp consolidates the financial results of LCFH and its subsidiaries. The ownership interest of certain existing owners of LCFH, who owned LP Units and an equivalent number of shares of Ladder Capital Corp Class B common stock as of the completion of the IPO (the “Continuing LCFH Limited Partners”) are reflected as a noncontrolling interest in Ladder Capital Corp’s combined consolidated financial statements. | ||
Immediately prior to the closing of the IPO on February 11, 2014, LCFH effectuated certain transactions intended to simplify the capital structure of LCFH (the “Reorganization Transactions”). Prior to the Reorganization Transactions, LCFH’s capital structure consisted of three different classes of membership interests (Series A and Series B Participating Preferred Units and Class A Common Units), each of which had different capital accounts. The net effect of the Reorganization Transactions was to convert the multiple-class structure into LP Units, a single new class of units in LCFH, and an equal number of shares of Class B common stock of Ladder Capital Corp. The conversion of all of the different classes of LCFH occurred in accordance with conversion ratios for each class of outstanding units based upon the liquidation value of LCFH, as if it had been liquidated upon the IPO, with such value determined by the $17.00 price per share of Class A common stock sold in the IPO. The distribution of LP Units per class of outstanding units was determined pursuant to the distribution provisions set forth in LCFH’s amended and restated Limited Liability Limited Partnership Agreement (the “Amended and Restated LLLP Agreement”). In addition, in connection with the IPO, certain of LCFH’s existing investors (the “Exchanging Existing Owners”) received 33,672,192 shares of Ladder Capital Corp Class A common stock in lieu of any or all LP Units and shares of Ladder Capital Corp Class B common stock that would otherwise have been issued to such existing investors in the Reorganization Transactions, which resulted in Ladder Capital Corp, or a wholly-owned subsidiary of Ladder Capital Corp, owning one LP Unit for each share of Class A Common Stock so issued to the Exchanging Existing Owners. | ||
The IPO resulted in the issuance by Ladder Capital Corp of 15,237,500 shares of Class A common stock to the public, including 1,987,500 shares of Class A common stock offered as a result of the exercise of the underwriters’ over-allotment option, and net proceeds to Ladder Capital Corp of approximately $238.5 million (after deducting fees and expenses associated with the IPO). In addition, in connection with the IPO, the Company granted 1,687,513 shares of restricted Class A common stock to members of management, certain directors and certain employees. | ||
Pursuant to the Amended and Restated LLLP Agreement, and subject to the applicable minimum retained ownership requirements and certain other restrictions, including notice requirements, from time to time, Continuing LCFH Limited Partners (or certain transferees thereof) had the right to exchange their LP Units for shares of Ladder Capital Corp’s Class A common stock on a one-for-one basis. | ||
As a result of the Company’s acquisition of LP Units of LCFH and LCFH’s election under Section 754 of Internal Revenue Code of 1986, as amended (the “Code”), the Company expects to benefit from depreciation and other tax deductions reflecting LCFH’s tax basis for its assets. Those deductions will be allocated to the Company and will be taken into account in reporting the Company’s taxable income. | ||
As a result of the transactions described above, at the time of the IPO: | ||
• | Ladder Capital Corp became the general partner of LCFH and, through LCFH and its subsidiaries, operates the Ladder Capital business. Accordingly, Ladder Capital Corp had a 51.0% economic interest in LCFH, and Ladder Capital Corp has a majority voting interest and controls the management of LCFH. As a result, Ladder Capital Corp consolidates the financial results of LCFH and records noncontrolling interest for the economic interest in LCFH held by the Continuing L CFH Limited Partners; | |
• | 50,597,205 shares of Ladder Capital Corp’s Class A common stock were outstanding (comprised of 15,237,500 shares issued to the investors in the IPO, 33,672,192 shares issued to the Exchanging Existing Owners and 1,687,513 shares issued to certain directors, officers, and employees in connection with the IPO), and 48,537,414 shares of Ladder Capital Corp’s Class B common stock were outstanding. Class B common stock has no economic interest but rather voting interest in the Company. At the time of the IPO, 99,134,619 LP Units of LCFH were outstanding, of which 50,597,205 LP Units were held by Ladder Capital Corp and its subsidiaries and 48,537,414 units were held by the Continuing LCFH Limited Partners; and | |
• | LP Units became exchangeable on a one-for-one basis for shares of Ladder Capital Corp Class A common stock. In connection with an exchange, a corresponding number of shares of Ladder Capital Corp Class B common stock were required to be provided and canceled. LP units and Ladder Capital Corp Class B common stock could not be legally separated. However, the exchange of LP Units for shares of Ladder Capital Corp Class A common stock would not affect the exchanging owners’ voting power since the votes represented by the canceled shares of Ladder Capital Corp Class B common stock would be replaced with the votes represented by the shares of Class A common stock for which such LP Units were exchanged. As a result of the Company’s acquisition of LP Units and LCFH’s election under Section 754 of the Code, the Company expects to benefit from depreciation and other tax deductions reflecting LCFH’s tax basis for its assets. Those deductions will be allocated to the Company and will be taken into account in reporting the Company’s taxable income. | |
The Company accounted for the IPO Transactions as an exchange between entities under common control and recorded the net assets and shareholders’ equity of the contributed entities at historical cost. | ||
The Reorganization Transactions and the IPO are collectively referred to as the “IPO Transactions.” | ||
The REIT Structuring Transactions | ||
In anticipation of the Company’s election to be subject to tax as a real estate investment trust (“REIT”) beginning with its 2015 taxable year (the “REIT Election”), we effected an internal realignment as of December 31, 2014 that we believe permits us to operate as a REIT, subject to the risk factors described herein. As part of this realignment, LCFH and certain of its wholly-owned subsidiaries were serialized in order to segregate our REIT-qualified assets and income from our non-REIT-qualified assets and income. Pursuant to such serialization, all assets and liabilities of LCFH and each such subsidiary were identified as taxable REIT subsidiary (“TRS”) assets and liabilities (e.g., our conduit securitization and condominium sales businesses) and REIT assets and liabilities (e.g., balance sheet loans, real estate and most securities), and were allocated on our internal books and records into two pools within LCFH or such subsidiary, Series TRS and Series REIT (collectively, the “Series”), respectively. | ||
In connection with this serialization, the Amended and Restated LLLP Agreement was amended and restated, effective as of December 31, 2014 (the “Third Amended and Restated LLLP Agreement”). Pursuant to the Third Amended and Restated LLLP Agreement: | ||
• | all assets and liabilities of LCFH were allocated on LCFH’s internal books and records to either Series REIT or Series TRS of LCFH; | |
• | the Company serves as general partner of LCFH and of Series REIT of LCFH; | |
• | LC TRS I LLC (“LC TRS I”), a Delaware limited liability company wholly-owned by Series REIT of LCFH, serves as the general partner of Series TRS of LCFH; | |
• | each outstanding LP Unit was exchanged for one Series REIT LP Unit (which is entitled to receive profits and losses derived from REIT assets and liabilities) and one Series TRS LP Unit (which is entitled to receive profits and losses derived from TRS assets and liabilities) (Series REIT limited partnership units (“Series REIT LP Units”) and Series TRS limited partnership units (“Series TRS LP Units” and collectively with SERIES REIT LP Units, “Series Units”); | |
• | as a result, we own, directly and indirectly, an aggregate of 51.9% of Series REIT of LCFH and, through such ownership, have the right to receive 51.9% of the profits and distributions of Series TRS; | |
• | the limited partners of LCFH own the remaining 48.1% of each of Series REIT and Series TRS of LCFH; | |
• | Series REIT of LCFH, in turn, owns, directly or indirectly, 100% of the REIT series of each of its serialized subsidiaries as well as certain wholly-owned REIT subsidiaries; | |
• | Series TRS of LCFH owns, directly or indirectly, 100% of the TRS series of each of its serialized subsidiaries as well as certain wholly-owned TRSs; | |
• | Series TRS LP Units are exchangeable for an equal number of shares (“TRS Shares”) of LC TRS I (a “TRS Exchange”); | |
• | in order to effect the exchange of Series Units for shares of Class A common stock of the Company on a one-for-one basis (the “Class A Exchange”), holders are required to surrender (i) one share of the Company’s Class B common stock, (ii) one Series REIT LP Unit, and (iii) either one Series TRS LP Unit or one TRS Share; and | |
• | each of Series REIT and Series TRS has separate boards, officers, books and records, bank accounts, and tax identification numbers. | |
Each Series of LCFH also signed a separate joinder agreement, agreeing effective as of 11:59:59 pm on December 31, 2014 (the “Effective Time”), to assume and pay when due (i) any and all liabilities of LCFH incurred or accrued by LCFH as of the Effective Time and (ii) any and all obligations of LCFH arising under contracts, bonds, notes, guarantees, leases or other agreements to which LCFH was a party as of the Effective Time (collectively, the “Agreements”), regardless of whether such obligations arise under the applicable Agreement at, prior to, or after the Effective Time, in each case, with the same force and effect as if each Series had been a signatory to such Agreements on the date thereof. | ||
Also in connection with the planned REIT Election, the Company’s certificate of incorporation was amended and restated, effective as of February 27, 2015, following approval by our stockholders (the “Charter Amendment”), to, among other things, impose ownership limitations and transfer restrictions to facilitate our compliance with the REIT requirements. To qualify as a REIT under the Code, our stock must be beneficially owned by 100 or more persons during at least 335 days of a taxable year of 12 months or during a proportionate part of a shorter taxable year (other than the first year for which an election to be a REIT has been made). Also, not more than 50% of the value of the outstanding shares of our capital stock may be owned, directly or indirectly, by five or fewer “individuals” (as defined to include certain entities such as private foundations) during the last half of a taxable year (other than the first taxable year for which an election to be a REIT has been made). Finally, a person actually or constructively owning 10% or more of the vote or value of the outstanding shares of our capital stock could lead to a level of affiliation between the Company and one or more of its tenants that could disqualify our revenues from the affiliated tenants and possibly jeopardize or otherwise adversely impact our qualification as a REIT. | ||
To facilitate satisfaction of these requirements for qualification as a REIT, the Charter Amendment contains provisions restricting the ownership and transfer of shares of all classes or series of our capital stock. Including ownership limitations in a REIT’s charter is the most effective mechanism to monitor compliance with the above-described provisions of the Code. The Charter Amendment provides that, subject to certain exceptions and the constructive ownership rules, no person may own, or be deemed to own by virtue of the attribution provisions of the Code, in excess of (i) 9.8% in value of the outstanding shares of all classes or series of our capital stock or (ii) 9.8% in value or number (whichever is more restrictive) of the outstanding shares of any class of our common stock. | ||
In addition, our Tax Receivable Agreement with the Continuing LCFH Limited Partners (the “TRA Members”) was amended and restated in connection with our REIT Election, effective as of December 31, 2014 (the “TRA Amendment”), in order to preserve a portion of the potential tax benefits currently existing under the Tax Receivable Agreement that would otherwise be reduced in connection with our REIT Election. The TRA Amendment provides that, in lieu of the existing tax benefit payments under the Tax Receivable Agreement for the 2015 taxable year and beyond, LC TRS I will pay to the TRA Members 85% of the amount of the benefits, if any, that LC TRS I realizes or under certain circumstances (such as a change of control) is deemed to realize as a result of (i) the increases in tax basis resulting from the TRS Exchanges by the TRA Members, (ii) any incremental tax basis adjustments attributable to payments made pursuant to the TRA Amendment, and (iii) any deemed interest deductions arising from payments made by LC TRS I under the TRA Amendment. Under the TRA Amendment, LC TRS I expects to benefit from the remaining 15% of cash savings in income tax that it realizes, which is in the same proportion realized by the Company under the existing Tax Receivable Agreement. The purpose of the TRA Amendment was to preserve the benefits of the Tax Receivable Agreement to the extent possible in a REIT, although, as a result, the amount of payments made to the TRA Members under the TRA Amendment is expected to be less than would be made under the prior Tax Receivable Agreement. The TRA Amendment continues to share such benefits in the same proportions and otherwise has substantially the same terms and provisions as the prior Tax Receivable Agreement. See Note 2 and Note 15 for further discussion of the Tax Receivable Agreement. See Note 20, Subsequent Events, for further discussion on REIT Election. |
SIGNIFICANT_ACCOUNTING_POLICIE
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Accounting Policies [Abstract] | |||||||||||||
SIGNIFICANT ACCOUNTING POLICIES | 2. SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||
Basis of Accounting and Principles of Combination and Consolidation | |||||||||||||
The accompanying combined consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). | |||||||||||||
The combined consolidated financial statements include the Company’s accounts and those of its subsidiaries which are majority-owned and/or controlled by the Company and variable interest entities for which the Company has determined itself to be the primary beneficiary, if any. All significant intercompany transactions and balances have been eliminated. The combined consolidated financial statements of the Company are comprised of the consolidation of LCFH and its wholly-owned and majority owned subsidiaries, prior to the IPO Transactions, and the consolidated financial statements of Ladder Capital Corp, subsequent to the IPO Transactions. | |||||||||||||
Accounting Standards Codification (“ASC”) Topic 810 — Consolidation (“ASC 810”), provides guidance on the identification of entities for which control is achieved through means other than voting rights (“variable interest entities” or “VIEs”) and the determination of which business enterprise, if any, should consolidate the VIEs. Generally, the consideration of whether an entity is a VIE applies when either: (1) the equity investors (if any) lack one or more of the essential characteristics of a controlling financial interest; (2) the equity investment at risk is insufficient to finance that entity’s activities without additional subordinated financial support; or (3) the equity investors have voting rights that are not proportionate to their economic interests and the activities of the entity involve or are conducted on behalf of an investor with a disproportionately small voting interest. The Company consolidates VIEs in which it is considered to be the primary beneficiary. The primary beneficiary is defined by the entity having both of the following characteristics: (1) the power to direct the activities that, when taken together, most significantly impact the variable interest entity’s performance; and (2) the obligation to absorb losses and right to receive the returns from the VIE that would be significant to the VIE. As of December 31, 2014, the Company does not have investments in VIEs. | |||||||||||||
Noncontrolling interests in consolidated subsidiaries are defined as “the portion of the equity (net assets) in the subsidiaries not attributable, directly or indirectly, to a parent.” Noncontrolling interests are presented as a separate component of capital in the combined consolidated balance sheets. In addition, the presentation of net income attributes earnings to shareholders/unitholders (controlling interest) and noncontrolling interests. | |||||||||||||
Use of Estimates | |||||||||||||
The preparation of the combined consolidated financial statements in conformity with accounting principles generally accepted in the United States 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 dates of the balance sheets and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Estimates and assumptions are reviewed periodically and the effects of resulting changes are reflected in the combined consolidated financial statements in the period the changes are deemed to be necessary. Significant estimates made in the accompanying combined consolidated financial statements include, but are not limited to the following: | |||||||||||||
• | valuation of real estate securities; | ||||||||||||
• | allocation of purchase price for acquired real estate; | ||||||||||||
• | impairment, and useful lives, of real estate; | ||||||||||||
• | useful lives of intangible assets; | ||||||||||||
• | valuation of derivative instruments; | ||||||||||||
• | valuation of deferred tax asset; | ||||||||||||
• | amounts payable pursuant to the Tax Receivable Agreement; | ||||||||||||
• | determination of effective yield for recognition of interest income; | ||||||||||||
• | adequacy of provision for loan losses; | ||||||||||||
• | determination of other than temporary impairment of real estate securities and investments in unconsolidated joint ventures; | ||||||||||||
• | certain estimates and assumptions used in the accrual of incentive compensation and calculation of the fair value of equity compensation issued to employees; | ||||||||||||
• | determination of the effective tax rate for income tax provision; and | ||||||||||||
• | certain estimates and assumptions used in the allocation of revenue and expenses for our segment reporting. | ||||||||||||
Comprehensive Income | |||||||||||||
Comprehensive income is defined as the change in equity of a business enterprise during a period from transactions and other events and circumstances, excluding those resulting from investments by and distributions to owners. For the Company’s purposes, comprehensive income represents net income, as presented in the combined consolidated statements of income, adjusted for unrealized gains or losses on securities available for sale and as further adjusted for realized gains or losses on securities sold. | |||||||||||||
Cash and Cash Equivalents | |||||||||||||
The Company considers all investments with original maturities of three months or less, at the time of acquisition, to be cash equivalents. The Company maintains cash accounts at several financial institutions, which are insured up to a maximum of $250,000 per account as of December 31, 2014 and 2013. At December 31, 2014 and 2013 and at various times during the years, balances exceeded the insured limits. | |||||||||||||
Cash Collateral Held by Broker | |||||||||||||
The Company maintains accounts with brokers to facilitate financial derivative and repurchase agreement transactions in support of its loan and securities investments and risk management activities. Based on the value of the positions in these accounts and the associated margin requirements, the Company may be required to deposit additional cash into these broker accounts. The cash collateral held by broker is considered restricted cash. | |||||||||||||
Restricted Cash | |||||||||||||
As of December 31, 2014 and 2013, included in other assets on the Company’s combined consolidated balance sheets are $24,406,731 and $14,786,027, respectively, of tenant security deposits, deposits related to real estate sales and acquisitions and required escrow balances on credit facilities, which are considered restricted cash. | |||||||||||||
Mortgage Loans Receivable Held for Investment | |||||||||||||
Loans that the Company has the intent and ability to hold for the foreseeable future, or until maturity or payoff, are reported at their outstanding principal balances net of any unearned income, unamortized deferred fees or costs, premiums or discounts and an allowance for loan losses. Loan origination fees and direct loan origination costs are deferred and recognized in interest income over the estimated life of the loans using the interest method, adjusted for actual prepayments. Upon the decision to sell such loans, the Company will transfer the loan from mortgage loan receivables held for investment to mortgage loan receivables held for sale at the lower of carrying value or fair value less cost to sell on the combined consolidated balance sheets. | |||||||||||||
The Company evaluates each loan classified as a mortgage loan receivable held for investment for impairment at least quarterly. Impairment occurs when it is deemed probable that the Company will not be able to collect all amounts due according to the contractual terms of the loan. If the loan is considered to be impaired, an allowance is recorded to reduce the carrying value of the loan to the present value of the expected future cash flows discounted at the loan’s contractual effective rate or the fair value of the collateral, if recovery of the Company’s investment is expected solely from the collateral. | |||||||||||||
The Company’s loans are typically collateralized by real estate. As a result, the Company regularly evaluates the extent and impact of any credit deterioration associated with the performance and/or value of the underlying collateral property as well as the financial and operating capability of the borrower/sponsor on a loan by loan basis. The Company also evaluates the financial wherewithal of any loan guarantors as well as the borrower’s competency in managing and operating the properties. In addition, the Company considers the overall economic environment, real estate sector, and geographic sub-market in which the borrower operates. Such impairment analyses are completed and reviewed by asset management personnel, who utilize various data sources, including (i) periodic financial data such as property occupancy, tenant profile, rental rates, operating expenses, the borrowers exit plan, and capitalization and discount rates, (ii) site inspections, and (iii) current credit spreads and other market data. | |||||||||||||
Upon the completion of the process above, the Company concluded that no loans originated by the Company were impaired as of December 31, 2014 and December 31, 2013. Significant judgment is required when evaluating loans for impairment, therefore actual results over time could be materially different. | |||||||||||||
In addition, the Company assesses a portfolio-based loan loss provision. The Company estimates its loan loss provision based on its historical loss experience and expectation of losses inherent in the investment portfolio but not yet realized. Since inception, the Company has had no events of impairment on any of the loans it has originated, however, to ensure that the risk exposures are properly measured and the appropriate reserves are taken, the Company assesses a loan loss provision balance that will grow over time with its portfolio and the related risk as the assets are aged and approach maturity and ultimate refinancing where applicable. | |||||||||||||
Real Estate Securities | |||||||||||||
The Company designates its real estate securities investments on the date of acquisition of the investment. Real estate securities that the Company does not hold for the purpose of selling in the near-term, but may dispose of prior to maturity, are designated as available-for-sale and are carried at estimated fair value with the net unrealized gains or losses on all securities, except for Government National Mortgage Association (“GNMA”) interest-only and Federal Home Loan Mortgage Corp (“FHLMC”) interest-only securities (collectively, “Agency interest-only securities”), recorded as a component of other comprehensive income (loss) in partners’ capital. | |||||||||||||
The Company’s Agency interest-only securities are considered to be hybrid financial instruments that contain embedded derivatives. As a result, the Company accounts for them as hybrid instruments in their entirety at fair value with changes in fair value recognized in earnings in the combined consolidated statements of income in accordance with ASC 815. The Company’s recognition of interest income from its Agency interest-only and all other securities, including effective interest from amortization of premiums, follows the Company’s Revenue Recognition policy as disclosed within this footnote for recognizing interest income on its securities. The interest income recognized from the Company’s Agency interest-only securities is recorded in interest income on the combined consolidated statements of income. The Company uses the specific identification method when determining the cost of securities sold and the amount reclassified out of accumulated other comprehensive income into earnings. The Company accounts for the changes in the fair value of the unfunded portion of its GNMA Construction securities, which are included in real estate securities, available-for-sale, on the combined consolidated balance sheet, as available for sale securities. Unrealized losses on securities that, in the judgment of management, are other than temporary are charged against earnings as a loss in the combined consolidated statements of income. The Company estimates the fair value of its commercial mortgage-backed securities (“CMBS”) primarily based on pricing services and broker quotes for the same or similar securities in which it has invested. Different judgments and assumptions could result in materially different estimates of fair value. | |||||||||||||
When the estimated fair value of an available-for-sale security is less than amortized cost, the Company will consider whether there is an other-than-temporary impairment in the value of the security. An impairment will be considered other-than-temporary based on consideration of several factors, including (i) if the Company intends to sell the security, (ii) if it is more likely than not that the Company will be required to sell the security before recovering its cost, or (iii) the Company does not expect to recover the security’s cost basis (i.e., a credit loss). A credit loss will have occurred if the present value of cash flows expected to be collected from the debt security is less than the amortized cost basis. If the Company intends to sell an impaired debt security or it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis less any current period credit loss, the impairment is other-than-temporary and will be recognized currently in earnings equal to the entire difference between fair value and amortized cost. If a credit loss exists, but the Company does not intend to, nor is it more likely than not that it will be required to sell before recovery, the impairment is other-than-temporary and will be separated into (i) the estimated amount relating to the credit loss, and (ii) the amount relating to all other factors. Only the estimated credit loss amount is recognized currently in earnings, with the remainder of the loss recognized in other comprehensive income. Estimating cash flows and determining whether there is other-than-temporary impairment require management to exercise judgment and make significant assumptions, including, but not limited to, assumptions regarding estimated prepayments, loss assumptions, and assumptions regarding changes in interest rates. As a result, actual impairment losses, and the timing of income recognized on these securities, could differ from reported amounts. | |||||||||||||
The Company considers information from selected third party pricing services in determining the fair value of its securities. The Company develops an understanding of the valuation methodologies used by such pricing services through discussions with their representatives and review of their valuation methodologies used for different types of securities. | |||||||||||||
The Company understands that the pricing services develop estimates of fair value for CMBS and other commercial real estate securities guaranteed by a U.S. governmental agency or by a government sponsored entity (together, “U.S. Agency Securities”) using various techniques, including discussion with their internal trading desks, proprietary models and matrix pricing approaches. The Company does not have access to, and is therefore not able to review in detail, the inputs used by the pricing services in developing their estimates of fair value. However, on at least a monthly basis as part of our closing process, the Company evaluates the fair value information provided by the pricing services by comparing this information for reasonableness against its direct observations of market activity for similar securities and anecdotal information obtained from market participants that, in its assessment, is relevant to the determination of fair value. This process may result in the Company “challenging” the estimate of fair value for a security if it is unable to reconcile the estimate provided by the pricing service with its assessment of fair value for the security. Accordingly, in following this approach, the Company’s objective is to ensure that the information used by pricing services in their determination of fair value of securities is reasonable and appropriate. | |||||||||||||
The Company requests prices for each of its CMBS and U.S. Agency Securities investments from three different sources. Typically, two prices per security are obtained. The Company may also develop a price for a security based on its direct observations of market activity and other observations if there is either significant variation in the values obtained from the pricing services or if the Company challenges the prices provided. The Company then utilizes the simple average of the available prices to determine the value used for financial reporting. The Company may occasionally utilize broker quotes as a price validation; however, since broker quotes are non-binding, the Company does not consider them to be a primary source for valuation. | |||||||||||||
Since inception, the Company has not encountered significant variation in the values obtained from the various pricing sources. In the extremely limited occasions where the prices received were challenged, the challenge resulted in the prices provided by the pricing services being updated to reflect current market updates or cash flow assumptions. The lack of significant variation and challenges are directly related to the high liquidity and transparency of the securities that constitute the portfolio. | |||||||||||||
Real Estate | |||||||||||||
The Company records acquired real estate at cost and makes assessments as to the useful lives of depreciable assets. The Company considers the period of future benefit of the asset to determine its appropriate useful lives. Depreciation is computed using a straight-line method over the estimated useful life of 20 to 47 years for buildings, four to 15 years for building fixtures and improvements and the remaining lease term for acquired intangible lease assets. | |||||||||||||
The Company classifies most of its investments in real estate as held and used. The Company measures and records a property that is classified as held and used at its carrying amount, adjusted for any depreciation expense and impairments, as applicable. | |||||||||||||
Certain of the Company’s real estate investments are condominium units that the Company intends to sell over time. As of January 1, 2014, the date the Company adopted the accounting guidance in ASU 2014-8, Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity (“ASU 2014-8”), the results of operations and the related gain or loss on sale of properties that have been sold are reflected in other income or presented in discontinued operations in the combined consolidated statements of income due to fact that the disposal does not represent a strategic shift that has (or will have) a major effect on the Company’s operations and financial results and full disposal is not expected to be completed within one year. Prior to January 1, 2014, the results of operations and the related gain or loss on sale of condominium units that have been sold are not reflected as held for sale or presented in discontinued operations in the combined consolidated statements of income due to the significant continuing involvement in the real estate held through the consolidated homeowner’s association. | |||||||||||||
Certain of the Company’s real estate is leased to others on a net lease basis where the tenant is generally responsible for payment of real estate taxes, property, building and general liability insurance and property and building maintenance. These leases are for fixed terms of varying length and provide for annual rentals. Rental income from leases is recognized on a straight-line basis over the term of the respective leases. The cumulative excess of rents recognized over amounts contractually due pursuant to the underlying leases are included in unbilled rent receivable within other assets in the combined consolidated balance sheets. | |||||||||||||
Allocation of Purchase Price for Acquired Real Estate | |||||||||||||
In accordance with the guidance for business combinations, the Company determines whether a transaction or other event is a business combination. If the transaction is determined to be a business combination, the Company determines if the transaction should be considered to be a between entities under common control. The acquisition of an entity under common control is accounted for on the carryover basis of accounting whereby the assets and liabilities of the companies are recorded on the same basis as they were carried by the company under common control. All other business combinations, including rental property, are accounted for by applying the acquisition method of accounting. The Company will immediately expense acquisition related costs and fees associated with such acquisitions. | |||||||||||||
Upon acquisition of rental property, the Company estimates the fair value of acquired tangible assets, consisting of land, building and improvements, and identified intangible assets and liabilities assumed, generally consisting of the fair value of (i) above and below market leases, (ii) in-place leases and (iii) tenant relationships. The Company allocates the purchase price to the assets acquired and liabilities assumed based on their fair values. The Company records goodwill or a gain on bargain purchase (if any) if the net assets acquired/liabilities assumed exceed the purchase consideration of a transaction. In estimating the fair value of the tangible and intangible assets acquired, the Company considers information obtained about each property as a result of its due diligence and marketing and leasing activities, and utilizes various valuation methods, such as estimated cash flow projections utilizing appropriate discount and capitalization rates, estimates of replacement costs net of depreciation, and available market information. The fair value of the tangible assets of an acquired property considers the value of the property as if it were vacant. | |||||||||||||
Above-market and below-market lease values for acquired properties are initially recorded based on the present value (using a discount rate which reflects the risks associated with the leases acquired) of the difference between (i) the contractual amounts to be paid pursuant to each in-place lease and (ii) management’s estimate of fair market lease rates for each corresponding in-place lease, measured over a period equal to the remaining term of the lease for above-market leases and the remaining initial term plus the term of any below-market fixed rate renewal options for below-market leases. The capitalized above-market lease values are amortized as a reduction of base rental revenue over the remaining terms of the respective leases, and the capitalized below-market lease values are amortized as an increase to base rental revenue over the remaining initial terms plus the terms of any below-market fixed rate renewal options of the respective leases. If a tenant with a below market rent renewal does not renew, any remaining unamortized amount will be taken into income at that time. | |||||||||||||
Other intangible assets acquired include amounts for in-place lease values and tenant relationship values, which are based on management’s evaluation of the specific characteristics of each tenant’s lease and the Company’s overall relationship with the respective tenant. Factors to be considered by management in its analysis of in-place lease values include an estimate of carrying costs during hypothetical expected lease-up periods considering current market conditions, and costs to execute similar leases. In estimating carrying costs, management includes real estate taxes, insurance and other operating expenses and estimates of lost rentals at market rates during the expected lease-up periods, depending on local market conditions. In estimating costs to execute similar leases, management considers leasing commissions, legal and other related expenses. Characteristics considered by management in valuing tenant relationships include the nature and extent of the Company’s existing business relationships with the tenant, growth prospects for developing new business with the tenant, the tenant’s credit quality and expectations of lease renewals. The value of in-place leases are amortized to expense over the remaining initial terms of the respective leases. The value of tenant relationship intangibles are amortized to expense over the anticipated life of the relationships but in no event do the amortization periods for intangible assets exceed the depreciable lives of the buildings. If a tenant terminates its lease, the unamortized portion of the in-place lease value and tenant relationship intangibles are charged to expense. | |||||||||||||
The fair value of other investments and debt assumed are valued using techniques consistent with those disclosed in Note 8, depending on the nature of the investments or debt. The fair value of other assumed assets and liabilities are based on best information available at the time of the acquisition. | |||||||||||||
Impairment of Property Held for Use | |||||||||||||
On a periodic basis, management assesses whether there are any indicators that the value of the Company’s properties classified as held for use may be impaired. In addition to identifying any specific circumstances which may affect a property or properties, management considers other criteria for determining which properties may require assessment for potential impairment. The criteria considered by management include reviewing low leased percentages, significant near-term lease expirations, recently acquired properties, current and historical operating and/or cash flow losses, near-term mortgage debt maturities or other factors that might impact the Company’s intent and ability to hold the property. A property’s value is impaired only if management’s estimate of the aggregate future cash flows (undiscounted and without debt service charges) to be generated by the property is less than the carrying value of the property. To the extent impairment has occurred, the loss shall be measured as the excess of the carrying amount of the property over the fair value of the property. The Company’s estimates of aggregate future cash flows expected to be generated by each property are based on a number of assumptions. These assumptions are generally based on management’s experience in its local real estate markets and the effects of current market conditions. The assumptions are subject to economic and market uncertainties including, among others, demand for space, competition for tenants, changes in market rental rates, and costs to operate each property. As these factors are difficult to predict and are subject to future events that may alter management’s assumptions, the future cash flows estimated by management in its impairment analyses may not be achieved, and actual losses or impairments may be realized in the future. | |||||||||||||
Real Estate Held for Sale | |||||||||||||
In accordance with accounting guidance found in ASC Topic 360 - Property, Plant, and Equipment (“ASC 360”), when assets are identified by management as held for sale, the Company discontinues depreciating the assets and estimates the sales price, net of selling costs, of such assets. If, in management’s opinion, the estimated net sales price of the assets which have been identified as held for sale is less than the net book value of the assets, an impairment charge will be recorded in the combined consolidated statements of income. | |||||||||||||
If circumstances arise that previously were considered unlikely and, as a result, the Company decides not to sell a property previously classified as held for sale, the property is reclassified as held and used. A property that is reclassified is measured and recorded individually at the lower of (a) its carrying amount before the property was classified as held for sale, adjusted for any depreciation (amortization) expense that would have been recognized had the property been continuously classified as held and used, or (b) the fair value at the date of the subsequent decision not to sell. | |||||||||||||
Sales of Real Estate | |||||||||||||
Gains on sales of real estate are recognized pursuant to the provisions included in ASC 360-20, Real Estate Sales (“ASC 360-20”). The specific timing of a sale is measured against various criteria in ASC 360-20 related to the terms of the transaction and any continuing involvement in the form of management or financial assistance associated with the properties. If the sales criteria for the full accrual method are not met, depending on the circumstances, the Company may not record a sale or it may record a sale but may defer some or all of the gain recognition. If the criteria for full accrual are not met, the Company may account for the transaction by applying the finance, leasing, profit sharing, deposit, installment or cost recovery methods, as appropriate, until the sales criteria for the full accrual method are met. | |||||||||||||
Investments in Unconsolidated Joint Ventures | |||||||||||||
The Company accounts for its investments in unconsolidated joint ventures under the equity method of accounting. The Company applies the equity method by initially recording these investments at cost, as investments in unconsolidated joint ventures, subsequently adjusted for equity in earnings and cash contributions and distributions. The outside basis portion of the Company’s joint ventures is amortized over the anticipated useful lives of the underlying ventures’ tangible and intangible assets acquired and liabilities assumed. Generally, the Company would discontinue applying the equity method when the investment (and any advances) is reduced to zero and would not provide for additional losses unless the Company has guaranteed obligations of the venture or is otherwise committed to providing further financial support for the investee. If the venture subsequently generates income, the Company only recognizes its share of such income to the extent it exceeds its share of previously unrecognized losses. | |||||||||||||
On a periodic basis, management assesses whether there are any indicators that the value of the Company’s investments in unconsolidated joint ventures may be impaired. An investment is impaired only if management’s estimate of the value of the investment is less than the carrying value of the investment, and such decline in value is deemed to be other than temporary. To the extent impairment has occurred, the loss shall be measured as the excess of the carrying amount of the investment over the value of the investment. The Company’s estimates of value for each investment (particularly in commercial real estate joint ventures) are based on a number of assumptions that are subject to economic and market uncertainties including, among others, demand for space, competition for tenants, changes in market rental rates, and operating costs. As these factors are difficult to predict and are subject to future events that may alter management’s assumptions, the values estimated by management in its impairment analyses may not be realized, and actual losses or impairment may be realized in the future. See Note 6, Investment in Unconsolidated Joint Ventures. | |||||||||||||
Valuation of Financial Instruments | |||||||||||||
Considerable judgment is necessary to interpret market data and develop estimated fair values. Accordingly, fair values are not necessarily indicative of the amounts the Company could realize upon disposition of the financial instruments. Financial instruments with readily available active quoted prices, or for which fair value can be measured from actively quoted prices, generally will have a higher degree of pricing observability and will therefore require a lesser degree of judgment to be utilized in measuring fair value. Conversely, financial instruments rarely traded or not quoted will generally have less, or no, pricing observability and will require a higher degree of judgment in measuring fair value. Pricing observability is generally affected by such items as the type of financial instrument, whether the financial instrument is new to the market and not yet established, the characteristics specific to the transaction and overall market conditions. The use of different market assumptions and/or estimation methodologies may have a material effect on estimated fair value amounts. | |||||||||||||
For a further discussion regarding the measurement of financial instruments see Note 8, Fair Value of Financial Instruments. | |||||||||||||
Valuation Hierarchy | |||||||||||||
In accordance with the authoritative guidance on fair value measurements and disclosures under ASC 820, Fair Value Measurement, the methodologies used for valuing such instruments have been categorized into three broad levels as follows: | |||||||||||||
Level 1 - Quoted prices in active markets for identical instruments. | |||||||||||||
Level 2 - Valuations based principally on other observable market parameters, including: | |||||||||||||
• | Quoted prices in active markets for similar instruments, | ||||||||||||
• | Quoted prices in less active or inactive markets for identical or similar instruments, | ||||||||||||
• | Other observable inputs (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates), and | ||||||||||||
• | Market corroborated inputs (derived principally from or corroborated by observable market data). | ||||||||||||
Level 3 - Valuations based significantly on unobservable inputs. | |||||||||||||
• | Valuations based on third party indications (broker quotes, counterparty quotes or pricing services) which were, in turn, based significantly on unobservable inputs or were otherwise not supportable as Level 2 valuations, and | ||||||||||||
• | Valuations based on internal models with significant unobservable inputs. | ||||||||||||
Pursuant to the authoritative guidance, these levels form a hierarchy. The Company follows this hierarchy for its financial instruments measured at fair value on a recurring basis. The classifications are based on the lowest level of input that is significant to the fair value measurement. | |||||||||||||
It is the Company’s policy to determine when transfers between levels of the fair value hierarchy are deemed to have occurred at the end of the reporting period. | |||||||||||||
Tuebor/Federal Home Loan Bank Membership | |||||||||||||
Tuebor Captive Insurance Company LLC (“Tuebor”), a wholly-owned subsidiary of the Company, was licensed in Michigan and approved to operate as a captive insurance company as well as being approved to become a member of the Federal Home Loan Bank (“FHLB”), with membership finalized with the purchase of stock, in the FHLB on July 11, 2012. That approval allowed Tuebor to purchase capital stock in the FHLB, the prerequisite to obtaining financing on eligible collateral. | |||||||||||||
Deferred Financing Costs | |||||||||||||
Fees and expenses incurred in connection with financing transactions are capitalized within other assets in the combined consolidated balance sheets and amortized over the term of the financing by applying the effective interest rate method. The amortization is reflected in interest expense. | |||||||||||||
Derivative Instruments | |||||||||||||
In the normal course of business, the Company is exposed to the effect of interest rate changes and may undertake a strategy to limit these risks through the use of derivatives. To address exposure to interest rates, the Company uses derivatives primarily to economically hedge the fair value variability of fixed rate assets caused by interest rate fluctuations and overall portfolio market risk. The Company may use a variety of derivative instruments that are considered conventional, or “plain vanilla” derivatives, including interest rate swaps, futures, caps, collars and floors, to manage interest rate risk. | |||||||||||||
To determine the fair value of derivative instruments, the Company uses a variety of methods and assumptions that are based on market conditions and risks existing at each balance sheet date. Standard market conventions and techniques such as discounted cash flow analysis, option-pricing models, and termination cost may be used to determine fair value. All such methods of measuring fair value for derivative instruments result in an estimate of fair value, and such value may never actually be realized. | |||||||||||||
The Company recognizes all derivatives on the combined consolidated balance sheets at fair value. The Company does not generally designate derivatives as hedges to qualify for hedge accounting for financial reporting purposes and therefore any net payments under, or fluctuations in the fair value of, these derivatives have been recognized currently in net result from derivative transactions in the accompanying combined consolidated statements of income. The Company records derivative asset and liability positions on a gross basis with any collateral posted with or received from counterparties recorded separately on the Company’s combined consolidated balance sheets. | |||||||||||||
Repurchase Agreements | |||||||||||||
The Company finances certain of its mortgage loan receivables held for sale, a portion of its mortgage loan receivables held for investment and the majority of its real estate securities using repurchase agreements. Under a repurchase agreement, an asset is sold to a counterparty to be repurchased at a future date at a predetermined price, which represents the original sales price plus interest. The Company accounts for these repurchase agreements as financings under ASC 860-10-40. Under this standard, for these transactions to be treated as financings, they must be separate transactions and not linked. If the Company finances the purchase of its mortgage loan receivables held for sale, mortgage loan receivables held for investment and real estate securities with repurchase agreements with the same counterparty from which the securities are purchased and both transactions are entered into contemporaneously or in contemplation of each other, the transactions are presumed under GAAP to be part of the same arrangement, or a “Linked Transaction,” unless certain criteria are met. As of December 31, 2014 and 2013, none of the Company’s repurchase agreements are accounted for as linked transactions. | |||||||||||||
Deferred Tax Asset and Amount Due Pursuant to Tax Receivable Agreement | |||||||||||||
In conjunction with the IPO, the Company is treated for U.S. federal income tax purposes as having directly purchased LP Units in LCFH from the existing unitholders. In the future, additional Series REIT LP Units, LC TRS I Shares (or Series TRS LP Units in lieu of such LC TRS I Shares) and shares of our Class B common stock may be exchanged for shares of Class A common stock in the Company. The initial purchase and these future exchanges are expected to result in an increase in the tax basis of LCFH’s assets attributable to the Company’s interest in LCFH. These increases in the tax basis of LCFH’s assets attributable to the Company’s interest in LCFH would not have been available but for this initial purchase and future exchanges. Such increases in tax basis are likely to increase (for tax purposes) depreciation and amortization deductions and therefore reduce the amount of income tax the Company would otherwise be required to pay in the future. The Tax Receivable Agreement provides for the payment by the Company to its Continuing LCFH Limited Partners (the “TRA Members”) of 85% of the amount of cash savings in U.S. federal, state and local income tax or franchise tax that the Company actually realizes as a result of (a) the increase in tax basis attributable to exchanges by the TRA Members and (b) tax benefits related to imputed interest deemed to be paid by the Company as a result of this Tax Receivable Agreement. The Company expects to benefit from the remaining 15% of cash savings, if any, in income tax that it realizes and record any such estimated tax benefits as an increase to additional paid-in-capital. For purposes of the Tax Receivable Agreement, cash savings in income tax will be computed by comparing the Company’s actual income tax liability to the amount of such taxes that it would have been required to pay had there been no increase to the tax basis of the assets of LCFH as a result of the exchanges and had it not entered into the Tax Receivable Agreement. The term of the Tax Receivable Agreement commenced upon consummation of the IPO and will continue until all such tax benefits have been utilized or expired, unless the Company exercises its right to terminate the Tax Receivable Agreement for an amount based on an agreed value of payments remaining to be made under the agreement. The Company has recorded the estimated tax benefits related to the increase in tax basis and imputed interest as a result of the future exchanges described above as a deferred tax asset in the combined consolidated statements of financial condition. The amount due to the TRA Members related to the Tax Receivable Agreement as a result of the future exchanges described above is recorded as amount due pursuant to Tax Receivable Agreement in the combined consolidated statements of financial condition. | |||||||||||||
The Tax Receivable Agreement was amended and restated in connection with our REIT Election, effective as of December 31, 2014 (the “TRA Amendment”), in order to preserve a portion of the potential tax benefits currently existing under the Tax Receivable Agreement that would otherwise be reduced in connection with our REIT Election. The TRA Amendment provides that, in lieu of the existing tax benefit payments under the Tax Receivable Agreement for the 2015 taxable year and beyond, LC TRS I LLC (“LC TRS I”) will pay to the TRA Members 85% of the amount of the benefits, if any, that LC TRS I realizes or under certain circumstances (such as a change of control) is deemed to realize as a result of (i) the increases in tax basis resulting from the TRS Exchanges by the TRA Members, (ii) any incremental tax basis adjustments attributable to payments made pursuant to the TRA Amendment, and (iii) any deemed interest deductions arising from payments made by LC TRS I under the TRA Amendment. Under the TRA Amendment, LC TRS I expects to benefit from the remaining 15% of cash savings in income tax that it realizes, which is in the same proportion realized by the Company under the existing Tax Receivable Agreement. The purpose of the TRA Amendment was to preserve the benefits of the Tax Receivable Agreement to the extent possible in a REIT, although, as a result, the amount of payments made to the TRA Members under the TRA Amendment is expected to be less than would be made under the prior Tax Receivable Agreement. The TRA Amendment continues to share such benefits in the same proportions and otherwise has substantially the same terms and provisions as the prior Tax Receivable Agreement. See Note 1 and Note 15 for further discussion of the Tax Receivable Agreement. | |||||||||||||
Income Taxes | |||||||||||||
The Company accounts for income taxes in accordance with ASC Topic 740 - Income Taxes (“ASC 740”), which requires the recognition of tax benefits or expenses on the temporary differences between financial reporting and tax bases of assets and liabilities. The Company’s operations were historically organized as a limited liability limited partnership which elected to be treated as a partnership for income tax purposes. Accordingly, the Company’s income was not subject to U.S. federal income taxes. Taxes related to income earned by this entity represented obligations of the individual partners and were not reflected in the combined consolidated financial statements. Instead, income taxes shown on the Company’s historical consolidated financial statements were attributable to the New York City Unincorporated Business Tax. After the Company’s IPO, the income from operations attributable to the Company is taxed at the prevailing federal, state and local and foreign income tax rates. Income from operations of LCFH remains taxable to its limited partners. | |||||||||||||
The Company determines whether a tax position of the Company is more likely than not to be sustained upon examination by the applicable taxing authority, including resolution of any related appeals or litigation processes, based on the technical merits of the position. The tax benefit to be recognized is measured as the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement which could result in the Company recording a tax liability that would reduce shareholders’ equity. | |||||||||||||
The Company’s policy is to classify interest and penalties associated with underpayment of federal and state income taxes, if any, as a component of general and administrative expense on its combined consolidated statements of income. For the year ended December 31, 2014 and 2013, the Company did not have any interest or penalties associated with the underpayment of any income taxes. The last three tax years remain open and subject to examination by tax jurisdictions. | |||||||||||||
As more fully discussed in Note 1, Organization and Operations and Note 20, Subsequent Events, the Company completed transactions and committed to a plan to elect to be taxed as a REIT effective with its tax year beginning January 1, 2015. A portion of the Company’s operations will operate in TRSs. | |||||||||||||
Interest Income | |||||||||||||
Interest income is accrued based on the outstanding principal amount and contractual terms of the Company’s loans and securities. Discounts or premiums associated with the purchase of loans and investment securities are amortized or accreted into interest income as a yield adjustment on the effective interest method, based on expected cash flows through the expected recovery period of the investment. On at least a quarterly basis, the Company reviews and, if appropriate, makes adjustments to its cash flow projections. The Company has historically collected, and expects to continue to collect, all contractual amounts due on its originated loans. As a result, the Company does not adjust the projected cash flows to reflect anticipated credit losses for these loans. If the performance of a credit deteriorated security is more favorable than forecasted, the Company will generally accrete more credit discount into interest income than initially or previously expected. These adjustments are made prospectively beginning in the period subsequent to the determination that a favorable change in performance is projected. Conversely, if the performance of a credit deteriorated security is less favorable than forecasted, an other-than-temporary impairment may be taken, and the amount of discount accreted into income will generally be less than previously expected. | |||||||||||||
The effective yield on securities is based on the projected cash flows from each security, which is estimated based on the Company’s observation of the then current information and events and will include assumptions related to interest rates, prepayment rates and the timing and amount of credit losses. On at least a quarterly basis, the Company reviews and, if appropriate, makes adjustments to its cash flow projections based on input and analysis received from external sources, internal models, and its judgment about interest rates, prepayment rates, the timing and amount of credit losses (if applicable), and other factors. Changes in cash flows from those originally projected, or from those estimated at the last evaluation, may result in a prospective change in the yield/interest income recognized on such securities. Actual maturities of the securities are affected by the contractual lives of the associated mortgage collateral, periodic payments of scheduled principal, and repayments of principal. Therefore, actual maturities of the securities will generally be shorter than stated contractual maturities. | |||||||||||||
For loans classified as held for investment and that the Company has not elected to record at fair value under Financial Accounting Standards Board (“FASB”) ASC 825, origination fees and direct loan origination costs are recognized in interest income over the loan term as a yield adjustment using the effective interest method. For loans classified as held for sale and that the Company has not elected to record at fair value under FASB ASC 825, origination fees and direct loan origination costs are deferred adjusting the basis of the loan and are realized as a portion of the gain/(loss) on sale of loans when sold. As of December 31, 2014, the Company did not hold any loans for which the fair value option was elected. | |||||||||||||
For our CMBS rated below AA, which represents approximately 6.1% of the Company’s CMBS portfolio as of December 31, 2014, cash flows from a security are estimated by applying assumptions used to determine the fair value of such security and the excess of the future cash flows over the investment are recognized as interest income under the effective yield method. The Company will review and, if appropriate, make adjustments to, its cash flow projections at least quarterly and monitor these projections based on input and analysis received from external sources and its judgment about interest rates, prepayment rates, the timing and amount of credit losses and other factors. Changes in cash flows from those originally projected, or from those estimated at the last evaluation, may result in a prospective change in interest income recognized and amortization of any premium or discount on, or the carrying value of, such securities. | |||||||||||||
For investments purchased with evidence of deterioration of credit quality for which it is probable, at acquisition, that the Company will be unable to collect all contractually required payments receivable, the Company will apply the provisions of ASC 310-30, “Loans and Debt Securities Acquired with Deteriorated Credit Quality.” ASC 310-30 addresses accounting for differences between contractual cash flows and cash flows expected to be collected from an investor’s initial investment in loans or debt securities (loans) acquired in a transfer if those differences are attributable, at least in part, to credit quality. ASC 310-30 limits the yield that may be accreted (accretable yield) to the excess of the investor’s estimate of undiscounted expected principal, interest and other cash flows (cash flows expected at acquisition to be collected) over the investor’s initial investment in the loan. ASC 310-30 requires that the excess of contractual cash flows over cash flows expected to be collected (nonaccretable difference) not be recognized as an adjustment of yield, loss accrual or valuation allowance. Subsequent increases in cash flows expected to be collected generally should be recognized prospectively through adjustment of the loan’s yield over its remaining life. Decreases in cash flows expected to be collected should be recognized as impairment. | |||||||||||||
Recognition of Operating Lease Income and Tenant Recoveries | |||||||||||||
Operating lease income is recognized on a straight-line basis over the respective lease terms. We classify amounts currently recognized as income, and expected to be received in later years, as assets in other assets in the accompanying combined consolidated balance sheets. Amounts received currently, but recognized as income in future years, are classified in other liabilities in the accompanying combined consolidated balance sheets. We commence recognition of operating lease income at the date the property is ready for its intended use and the tenant takes possession of or controls the physical use of the property. | |||||||||||||
Tenant recoveries related to reimbursement of real estate taxes, insurance, utilities, repairs and maintenance, and other operating expenses are recognized as revenue in the period during which the applicable expenses are incurred. | |||||||||||||
Sales of Loans | |||||||||||||
We recognize gains on sale of loans net of any costs related to that sale. | |||||||||||||
Transfer of Financial Assets | |||||||||||||
For a transfer of financial assets to be considered a sale, the transfer must meet the sale criteria of ASC 860 under which the Company must surrender control over the transferred assets which must qualify as recognized financial assets at the time of transfer. The assets must be isolated from the Company, even in bankruptcy or other receivership; the purchaser must have the right to pledge or sell the assets transferred and the Company may not have an option or obligation to reacquire the assets. If the sale criteria are not met, the transfer is considered to be a secured borrowing, the assets remain on the Company’s combined consolidated balance sheets and the sale proceeds are recognized as a liability. | |||||||||||||
Debt Issued | |||||||||||||
From time to time, a wholly-owned subsidiary of the Company will originate a loan (each, an “Intercompany Loan,” and collectively, “Intercompany Loans”) to another wholly-owned subsidiary of the Company to finance the purchase of real estate. The mortgage loan receivable and the related obligation do not appear in the Company’s combined consolidated balance sheets as they are eliminated upon consolidation. Once the Company issues (sells) an Intercompany Loan to a third party securitization trust (for cash), the related mortgage note is held for the first time by a creditor external to the Company. The accounting for the securitization of an Intercompany Loan—a financial instrument that has never been recognized in our combined consolidated financial statements as an asset—is considered a financing transaction under ASC 470, Debt, and ASC 835, Interest. | |||||||||||||
The periodic securitization of the Company’s mortgage loans involves both Intercompany Loans and mortgage loans made to third parties with the latter recognized as financial assets in the Company’s combined consolidated financial statements as part of an integrated transaction. The Company receives aggregate proceeds equal to the transaction’s all-in securitization value and sales price. In accordance with the guidance under ASC 835, when initially measuring the obligation arising from an Intercompany Loan’s securitization, the Company allocates the proceeds from each securitization transaction between the third-party loans and each Intercompany Loan so securitized on a relative fair value basis determined in accordance with the guidance in ASC 820, Fair Value Measurement. The difference between the amount allocated to each Intercompany Loan and the loan’s face amount is recorded as a premium or discount, and is amortized, using the effective interest method, as a reduction or increase in reported interest expense, respectively. | |||||||||||||
Fee Income | |||||||||||||
Fee income is comprised primarily of income from the management of our institutional partnership and managed accounts as well as from origination fees, exit fees and other fees on the loans we originate and in which we invest. | |||||||||||||
Fee Expense | |||||||||||||
Fee expense is comprised primarily of fees related to financing arrangements, transaction related costs and management fees incurred. In addition, fees paid under a loan referral agreement with Meridian Capital Group LLC (“Meridian”), as disclosed in Note 16, are reflected as fee expense. The agreement provides for the payment of referral fees for loans originated pursuant to a formula based on the Company’s net profit on such referred loan, as defined in the agreement, payable annually in arrears. While the arrangement gives rise to a potential conflict of interest, full disclosure is given and the borrower waives the conflict in writing. | |||||||||||||
Stock Based Compensation Plan | |||||||||||||
The Company accounts for its equity-based compensation awards using the fair value method, which requires an estimate of fair value of the award at the time of grant, and generally are time-based awards. For time-based awards the Company recognizes compensation expense over the substantive vesting period, on a straight-line basis. | |||||||||||||
Out-of-Period Adjustment | |||||||||||||
The Company identified certain computational errors in its calculation of depreciation and amortization relating to real estate and the related lease intangibles. These errors include using average lives for groups of properties (rather than the property-specific lives) and beginning depreciation/amortization upon the following full month rather than at the date of the acquisition. We concluded that the cumulative difference was not material, individually or in the aggregate to the Company’s operations in either the current period or any historical periods. Accordingly, in fiscal 2014, we recorded an out-of-period adjustment of approximately $1.2 million. | |||||||||||||
Reclassifications | |||||||||||||
During the year ended December 31, 2014, the Company made certain classification changes in its combined consolidated statements of cash flows to more appropriately reflect their nature. Specifically, the Company (i) reclassified the reduction (addition) of cash collateral held by broker for derivatives from net cash provided by (used in) operating activities to net cash provided by (used in) investing activities and (ii) reclassified purchase of derivative instruments from net cash provided by (used in) financing activities to net cash provided by (used in) investing activities. The Company has reclassified previously reported cash flow information to conform to the current classification as follows ($ in thousands): | |||||||||||||
As Originally Reported | Reclassification | As Reclassified | |||||||||||
Year Ended December 31, 2013 | |||||||||||||
Net cash provided by (used in) operating activities | $ | 466,733 | $ | 10,249 | $ | 476,982 | |||||||
Net cash provided by (used in) investing activities | (1,073,500 | ) | (10,269 | ) | (1,083,769 | ) | |||||||
Net cash provided by (used in) financing activities | 640,330 | 20 | 640,350 | ||||||||||
Year Ended December 31, 2012 | |||||||||||||
Net cash provided by (used in) operating activities | $ | (111,367 | ) | $ | (4,640 | ) | $ | (116,007 | ) | ||||
Net cash provided by (used in) investing activities | 283,692 | 4,414 | 288,106 | ||||||||||
Net cash provided by (used in) financing activities | (211,498 | ) | 226 | (211,272 | ) | ||||||||
Prior quarterly information has already been reclassified by the Company in its 2014 quarterly filings. | |||||||||||||
Recently Issued and Adopted Accounting Pronouncements | |||||||||||||
In February 2015, the Federal Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis (“ASU 2015-02”). This ASU makes changes to the VIE model and voting interest ("VOE") model consolidation guidance. The main provisions of the ASU include the following: i) adding a requirement that limited partnerships and similar legal entities must provide partners with either substantive kick-out rights or substantive participating rights over the general partner to qualify as a VOE rather than a VIE; ii) eliminating the presumption that the general partner should consolidate a limited partnership; iii) eliminating certain conditions that need to be met when evaluating whether fees paid to a decision maker or service provider are considered a variable interest; iv) excluding certain fees paid to decision makers or service providers when evaluating which party is the primary beneficiary of a VIE; and v) revising how related parties are evaluated under the VIE guidance. Lastly, the ASU eliminates the indefinite deferral of FAS 167, which allowed reporting entities with interests in certain investment funds to follow previous guidance in FIN 46 (R). However, the ASU permanently exempts reporting entities from consolidating registered money market funds that operate in accordance with Rule 2a-7 of the Investment Company Act of 1940. The ASU is effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. Entities may apply this ASU either using a modified retrospective approach by recording a cumulative-effect adjustment to equity as of the beginning period of adoption or retrospectively to all prior periods presented in the financial statements. Early adoption is also permitted provided that the ASU is applied from the beginning of the fiscal year of adoption. The Company anticipates adopting this update in the quarter ended March 31, 2016 and is currently evaluating the impact of the adoption on its financial statements. | |||||||||||||
In August 2014, FASB issued ASU 2014-15, Presentation of Financial Statements — Going Concern (Subtopic 205-40): Disclosure of Uncertainties About an Entity’s Ability to Continue as a Going Concern (“ASU 2014-15”). The guidance in ASU 2014-15 sets forth management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern as well as required disclosures. ASU 2014-15 indicates that, when preparing interim and annual financial statements, management should evaluate whether conditions or events, in the aggregate, raise substantial doubt about the entity’s ability to continue as a going concern for one year from the date the financial statements are issued or are available to be issued. This evaluation should include consideration of conditions and events that are either known or are reasonably knowable at the date the financial statements are issued or are available to be issued, and, if applicable, whether it is probable that management’s plans to address the substantial doubt will be implemented and, if so, whether it is probable that the plans will alleviate the substantial doubt. ASU 2014-15 is effective for annual periods ending after December 15, 2016, and interim periods and annual periods thereafter. Early application is permitted. The Company anticipates adopting this update in the quarter ended March 31, 2017 and does not expect the adoption to have a material impact on the Company’s combined consolidated financial statements. | |||||||||||||
In August 2014, FASB issued ASU 2014-14, Receivables-Trouble Debt Restructurings by Creditor (ASC Subtopic 310-40): Classification of Certain Government-Guaranteed Mortgage Loans Upon Foreclosure (“ASU 2014-14”). The guidance in ASU 2014-14 requires that a mortgage loan be derecognized and that a separate other receivable be recognized upon foreclosure if the following conditions are met: (1) the loan has a government guarantee that is not separable from the loan before foreclosure; (2) at the time of foreclosure, the creditor has the intent to convey the real estate property to the guarantor and make a claim on the guarantee, and the creditor has the ability to recover under that claim; and (3) at the time of foreclosure, any amount of the claim that is determined on the basis of the fair value of the real estate is fixed. Upon foreclosure, the separate other receivable should be measured based on the amount of the loan balance (principal and interest) expected to be recovered from the guarantor. The guidance is effective for fiscal years beginning after December 15, 2014, and the interim periods within those fiscal years. An entity should adopt the amendments in ASU 2014-14 using either a prospective transition method or a modified retrospective transition method. Early adoption, including adoption in an interim period, is permitted if the entity already has adopted ASU 2014-4. The Company anticipates adopting this update in the quarter ended March 31, 2015 and does not expect the adoption to have a material effect on the Company’s combined consolidated financial condition, results of operations or cash flows. | |||||||||||||
In August 2014, FASB issued ASU 2014-13, Consolidation (Topic 810): Measuring the Financial Assets and the Financial Liabilities of a Consolidated Collateralized Financing Entity (“ASU 2014-13”). For entities that consolidate a collateralized financing entity within the scope of this update, an option to elect to measure the financial assets and the financial liabilities of that collateralized financing entity using either the measurement alternative included in ASU 2014-13 or Topic 820 on fair value measurement is provided. The guidance is effective for fiscal years beginning after December 15, 2015, and the interim periods within those fiscal years. Early adoption is permitted as of the beginning of an annual period. The Company anticipates adopting this update in the quarter ended March 31, 2016 and does not expect the adoption to have a material effect on the Company’s combined consolidated financial condition, results of operations or cash flows. | |||||||||||||
In June 2014, FASB issued ASU 2014-12, Compensation-Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period, a consensus of the FASB Emerging Issues Task Force (“ASU 2014-12”). ASU 2014-12 requires that a performance target that affects vesting of share-based payment awards and that could be achieved after the requisite service period be treated as a performance condition. Compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the periods for which the requisite service has already been rendered. If the performance target becomes likely to be achieved before the end of the requisite service period, the remaining unrecognized compensation cost should be recognized prospectively over the remaining requisite service period. The total amount of compensation cost recognized during and after the requisite service period should reflect the number of awards that are expected to vest and should be adjusted to reflect those awards that ultimately vest. The requisite service period ends when the employee can cease rendering service and still be eligible to vest in the award if the performance target is achieved. ASU 2014-12 is effective for all entities for interim and annual periods beginning after December 15, 2015, with early adoption permitted. An entity may apply the amendments in ASU 2014-12 either (i) prospectively to all awards granted or modified after the effective date or (ii) retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements and to all new or modified awards thereafter. The Company anticipates adopting this update in the quarter ended March 31, 2016 and does not expect the adoption to have a material impact on the Company’s combined consolidated financial condition or results of operations. | |||||||||||||
In June 2014, FASB issued ASU 2014-11, Repurchase-to-Maturity Transactions, Repurchase Financings and Disclosures (“ASU 2014-11”). The pronouncement changes the accounting for repurchase-to-maturity transactions and linked repurchase financings to secured borrowing accounting, which is consistent with the accounting for other repurchase agreements. The pronouncement also requires two new disclosures. The first disclosure requires an entity to disclose information on transfers accounted for as sales in transactions that are economically similar to repurchase agreements. The second disclosure provides increased transparency about the types of collateral pledged in repurchase agreements and similar transactions accounted for as secured borrowings. The pronouncement is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. Early adoption is not permitted. The adoption of this pronouncement is not expected to have a material impact on the Company’s combined consolidated financial condition or results of operations. | |||||||||||||
In May 2014, FASB issued ASU 2014-9, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-9”). ASU 2014-9 is a comprehensive new revenue recognition model requiring a company to recognize revenue to depict the transfer of goods or services to a customer at an amount reflecting the consideration it expects to receive in exchange for those goods or services. In adopting ASU 2014-9, companies may use either a full retrospective or a modified retrospective approach. Additionally, this guidance requires improved disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. ASU 2014-9 is effective for the first interim period within annual reporting periods beginning after December 15, 2016, and early adoption is not permitted. The Company anticipates adopting this update in the quarter ended March 31, 2017 and is currently in the process of evaluating the impact the adoption of ASU 2014-9 will have on the Company’s combined consolidated financial condition or results of operations. | |||||||||||||
In April 2014, FASB issued ASU 2014-8, Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity (“ASU 2014-8”). The objective of this update is to change the criteria for determining which disposals can be presented as discontinued operations and to modify related disclosure requirements. Under this guidance, a disposal of a component of an entity or a group of components of an entity is required to be reported in discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results. This update requires expanded disclosures for discontinued operations reporting and is effective for annual and interim periods beginning after December 15, 2014 with early adoption permitted for disposals that have not been reported in financial statements previously issued or available for issuance. The Company adopted this guidance during the quarter ended March 31, 2014. | |||||||||||||
In July 2013, FASB issued ASU 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (“ASU 2013-11”). The objective of this update is to eliminate the diversity in practice in the presentation of unrecognized tax benefits when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. Under this guidance, an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except in certain circumstances. This update does not require any new recurring disclosures and is effective for annual and interim periods beginning after December 15, 2013. This guidance became effective for the Company beginning January 1, 2014. The adoption of this standard did not have a material impact on its combined consolidated financial statements or footnote disclosures. | |||||||||||||
In February 2013, FASB issued Accounting Standards Update (“ASU”) 2013-4, Liabilities (Topic 405): Obligations Resulting from Joint and Several Liability Arrangements for which the Total Amount of the Obligation Is Fixed at the Reporting Date (ASU 2013-4”). ASU 2013-4 addresses the recognition, measurement, and disclosure of certain obligations resulting from joint and several liability arrangements for which the total amount of the obligation is fixed at the reporting date, including debt arrangements, other contractual obligations, and settled litigation and judicial rulings. U.S. GAAP does not currently include specific guidance on accounting for such obligations with joint and several liability which has resulted in diversity in practice. The ASU requires an entity to measure these obligations as the sum of the amount the reporting entity agreed to pay on the basis of its arrangement among its co-obligors and any additional amount the reporting entity expects to pay on behalf of its co-obligors. The ASU also requires an entity to disclose the nature and amount of the obligation as well as other information about those obligations. The ASU is to be applied retrospectively to all prior periods presented for those obligations resulting from joint and several liability arrangements within the updates scope that exist within the Company’s statement of financial position at the beginning of the year of adoption. This guidance became effective for the Company beginning January 1, 2014. The adoption of this standard did not have a material impact on its combined consolidated financial statements or footnote disclosures. |
MORTGAGE_LOAN_RECEIVABLES
MORTGAGE LOAN RECEIVABLES | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Mortgage Loans on Real Estate [Abstract] | ||||||||||||||||
MORTGAGE LOAN RECEIVABLES | 3. MORTGAGE LOAN RECEIVABLES | |||||||||||||||
December 31, 2014 | ||||||||||||||||
Outstanding | Carrying | Weighted | Remaining | |||||||||||||
Face Amount | Value | Average | Maturity | |||||||||||||
Yield (1) | (years) | |||||||||||||||
Mortgage loan receivables held for investment, at amortized cost | $ | 1,536,922,814 | $ | 1,524,153,375 | 7.33 | % | 1.96 | |||||||||
Provision for loan losses | N/A | (3,100,000 | ) | |||||||||||||
Total mortgage loan receivables held for investment, at amortized cost | 1,536,922,814 | 1,521,053,375 | ||||||||||||||
Mortgage loan receivables held for sale | 417,954,757 | 417,954,757 | 4.31 | % | 9.72 | |||||||||||
Total | $ | 1,954,877,571 | $ | 1,939,008,132 | ||||||||||||
(1) December 31, 2014 yields are used to calculate weighted average yield for floating rate loans. | ||||||||||||||||
As of December 31, 2014, $231,938,111, or 15.2%, of the carrying value of our mortgage loan receivables held for investment, at amortized cost, were at fixed interest rates and $1,292,215,264, or 84.8%, of the carrying value of our mortgage loan receivables held for investment, at amortized cost, were at variable interest rates, linked to LIBOR, some of which include interest rate floors. As of December 31, 2014, $417,954,757, or 100.0%, of the carrying value of our mortgage loan receivables held for sale, were at fixed interest rates. | ||||||||||||||||
December 31, 2013 | ||||||||||||||||
Outstanding | Carrying | Weighted | Remaining | |||||||||||||
Face Amount | Value | Average | Maturity | |||||||||||||
Yield (1) | (years) | |||||||||||||||
Mortgage loan receivables held for investment, at amortized cost | $ | 549,573,788 | $ | 541,578,182 | 9.76 | % | 2.14 | |||||||||
Provision for loan losses | N/A | (2,500,000 | ) | |||||||||||||
Total mortgage loan receivables held for investment, at amortized cost | 549,573,788 | 539,078,182 | ||||||||||||||
Mortgage loan receivables held for sale | 440,774,789 | 440,489,789 | 5.47 | % | 9.62 | |||||||||||
Total | $ | 990,348,577 | $ | 979,567,971 | ||||||||||||
(1) December 31, 2013 yields are used to calculate weighted average yield for floating rate loans. | ||||||||||||||||
As of December 31, 2013, $421,824,981, or 77.9%, of the carrying value of our mortgage loan receivables held for investment, at amortized cost, were at fixed interest rates and $119,753,201, or 22.1%, of the carrying value of our mortgage loan receivables held for investment, at amortized cost, were at variable interest rates, linked to LIBOR, some of which include interest rate floors. As of December 31, 2013, 440,489,789, or 100%, of the carrying value of our mortgage loan receivables held for sale, were at fixed interest rates. | ||||||||||||||||
The following table summarizes mortgage loan receivables by loan type: | ||||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||
Outstanding | Carrying | Outstanding | Carrying | |||||||||||||
Face Amount | Value | Face Amount | Value | |||||||||||||
Mortgage loan receivables held for sale | ||||||||||||||||
First mortgage loan | $ | 417,954,757 | $ | 417,954,757 | $ | 440,774,789 | $ | 440,489,789 | ||||||||
Total mortgage loan receivables held for sale | 417,954,757 | 417,954,757 | 440,774,789 | 440,489,789 | ||||||||||||
Mortgage loan receivables held for investment, at amortized cost | ||||||||||||||||
First mortgage loan | 1,373,476,221 | 1,361,754,632 | 420,672,555 | 413,564,066 | ||||||||||||
Mezzanine loan | 163,446,593 | 162,398,743 | 128,901,233 | 128,014,116 | ||||||||||||
Total mortgage loan receivables held for investment, at amortized cost | 1,536,922,814 | 1,524,153,375 | 549,573,788 | 541,578,182 | ||||||||||||
Provision for loan losses | N/A | (3,100,000 | ) | N/A | (2,500,000 | ) | ||||||||||
Total | $ | 1,954,877,571 | $ | 1,939,008,132 | $ | 990,348,577 | $ | 979,567,971 | ||||||||
For the years ended December 31, 2014, 2013, and 2012 the activity in our loan portfolio was as follows: | ||||||||||||||||
Mortgage loan | Mortgage loan | |||||||||||||||
receivables held | receivables held | |||||||||||||||
for investment, at | for sale | |||||||||||||||
amortized cost | ||||||||||||||||
Balance December 31, 2013 | $ | 539,078,182 | $ | 440,489,789 | ||||||||||||
Origination of mortgage loan receivables | 1,201,968,254 | 3,345,371,937 | ||||||||||||||
Repayment of mortgage loan receivables | (214,510,727 | ) | (1,293,262 | ) | ||||||||||||
Proceeds from sales of mortgage loan receivables | — | (3,523,688,310 | ) | |||||||||||||
Realized gain on sale of mortgage loan receivables | — | 145,274,603 | ||||||||||||||
Transfer between held for investment and held for sale | (11,800,000 | ) | 11,800,000 | |||||||||||||
Accretion/amortization of discount, premium and other fees | 6,917,666 | — | ||||||||||||||
Loan loss provision | (600,000 | ) | — | |||||||||||||
Balance December 31, 2014 | $ | 1,521,053,375 | $ | 417,954,757 | ||||||||||||
Mortgage loan | Mortgage loan | |||||||||||||||
receivables held | receivables held | |||||||||||||||
for investment, at | for sale | |||||||||||||||
amortized cost | ||||||||||||||||
Balance December 31, 2012 | $ | 326,318,550 | $ | 623,332,620 | ||||||||||||
Origination of mortgage loan receivables | 486,072,238 | 2,013,674,038 | ||||||||||||||
Repayment of mortgage loan receivables | (268,093,305 | ) | (5,840,419 | ) | ||||||||||||
Proceeds from sales of mortgage loan receivables | — | (2,345,704,987 | ) | |||||||||||||
Realized gain on sale of mortgage loan receivables | — | 146,708,264 | ||||||||||||||
Transfer between held for investment and held for sale | (8,320,273 | ) | 8,320,273 | |||||||||||||
Accretion/amortization of discount, premium and other fees | 3,700,972 | — | ||||||||||||||
Loan loss provision | (600,000 | ) | — | |||||||||||||
Balance December 31, 2013 | $ | 539,078,182 | $ | 440,489,789 | ||||||||||||
Mortgage loan | Mortgage loan | |||||||||||||||
receivables held | receivables held | |||||||||||||||
for investment, at | for sale | |||||||||||||||
amortized cost | ||||||||||||||||
Balance December 31, 2011 | $ | 255,196,384 | $ | 258,841,725 | ||||||||||||
Origination of mortgage loan receivables | 341,947,392 | 2,036,138,933 | ||||||||||||||
Repayment of mortgage loan receivables | (204,913,202 | ) | (75,654,634 | ) | ||||||||||||
Proceeds from sales of mortgage loan receivables | — | (1,815,995,772 | ) | |||||||||||||
Realized gain on sale of mortgage loan receivables | — | 151,661,150 | ||||||||||||||
Transfer between held for investment and held for sale | (68,080,932 | ) | 68,080,932 | |||||||||||||
Accretion/amortization of discount, premium and other fees | 2,617,741 | 260,286 | ||||||||||||||
Loan loss provision | (448,833 | ) | — | |||||||||||||
Balance December 31, 2012 | $ | 326,318,550 | $ | 623,332,620 | ||||||||||||
During the years ended December 31, 2014 and 2012, the transfers of financial assets via sales of loans have been treated as sales by us under ASC 860. During the year ended December 31, 2013, transfers of financial assets via sales of loans have been treated as sales by us under ASC 860 with the exception of one asset with a book value of $996,650 in which the Company retains effective control that would preclude sales accounting. The transfer is considered to be a secured borrowing in which the asset remains on the Company’s combined consolidated balance sheets in mortgage loan receivables held for investment at amortized cost and the sale proceeds are recognized in other liabilities and held as secured borrowings. | ||||||||||||||||
The Company evaluates each of its loans for potential losses at least quarterly. Its loans are typically collateralized by real estate directly or indirectly. As a result, the Company regularly evaluates the extent and impact of any credit deterioration associated with the performance and/or value of the underlying collateral property, as well as the financial and operating capability of the borrower. Specifically, a property’s operating results and any cash reserves are analyzed and used to assess (i) whether cash flow from operations is sufficient to cover the debt service requirements currently and into the future, (ii) the ability of the borrower to refinance the loan at maturity, and/or (iii) the property’s liquidation value. The Company also evaluates the financial wherewithal of any loan guarantors as well as the borrower’s competency in managing and operating the properties. In addition, the Company considers the overall economic environment, real estate sector, and geographic sub-market in which the collateral property is located. Such impairment analyses are completed and reviewed by asset management personnel, who utilize various data sources, including (i) periodic financial data such as property occupancy, tenant profile, rental rates, operating expenses, the borrowers’ business plan, and capitalization and discount rates, (ii) site inspections, and (iii) current credit spreads and other market data. As a result of this analysis, the Company has concluded that none of its loans are individually impaired as of December 31, 2014 and December 31, 2013. | ||||||||||||||||
However, based on the inherent risks shared among the loans as a group, it is probable that the loans had incurred an impairment due to common characteristics and inherent risks in the portfolio. Therefore, the Company has recorded a reserve, based on a targeted percentage level which it seeks to maintain over the life of the portfolio, as disclosed in the tables below. Historically, the Company has not incurred losses on any originated loans. At December 31, 2014 and December 31, 2013, there was $4,195,927 and $4,273,890, respectively, of unamortized discounts included in our mortgage loan receivables held for investment, at amortized cost on our combined consolidated balance sheets. | ||||||||||||||||
At December 31, 2014 and December 31, 2013, there was one loan on non-accrual status with an amortized cost of $4,620,000 and an unamortized discount of $3,452,500 included in our mortgage loan receivables held for investment, at amortized cost on our combined consolidated balance sheets. This loan was not originated by the Company. Instead it was credit impaired at the time of acquisition, which was reflected in Ladder’s purchase price. | ||||||||||||||||
Provision for Loan Losses | ||||||||||||||||
Year Ended December 31, | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
Provision for loan losses at beginning of period | $ | 2,500,000 | $ | 1,900,000 | $ | 1,451,167 | ||||||||||
Provision for loan losses | 600,000 | 600,000 | 448,833 | |||||||||||||
Charge-offs | — | — | — | |||||||||||||
Provision for loan losses at end of period | $ | 3,100,000 | $ | 2,500,000 | $ | 1,900,000 | ||||||||||
REAL_ESTATE_SECURITIES
REAL ESTATE SECURITIES | 12 Months Ended | |||||||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ||||||||||||||||||||||||||||||||||
REAL ESTATE SECURITIES | 4. REAL ESTATE SECURITIES | |||||||||||||||||||||||||||||||||
CMBS, CMBS interest-only, GN construction securities, and GN permanent securities are classified as available-for-sale and reported at fair value with changes in fair value recorded in the current period in other comprehensive income. Government National Mortgage Association (“GNMA”) and Federal Home Loan Mortgage Corp (“FHLMC”) securities (collectively, “Agency interest-only securities”), are recorded at fair value with changes in fair value recorded in current period earnings. The following is a summary of the Company’s securities at December 31, 2014 and 2013 ($ in thousands): | ||||||||||||||||||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||||||||||||||||
Gross Unrealized | Weighted Average | |||||||||||||||||||||||||||||||||
Asset Type | Outstanding | Amortized | Gains | Losses | Carrying | # of | Rating (2) | Coupon % | Yield % | Remaining | ||||||||||||||||||||||||
Face Amount | Cost Basis | Value | Securities | Duration | ||||||||||||||||||||||||||||||
(years) | ||||||||||||||||||||||||||||||||||
CMBS | $ | 2,247,565 | $ | 2,277,995 | $ | 28,453 | $ | (1,038 | ) | $ | 2,305,410 | 145 | AAA | 3.31 | % | 2.6 | % | 4.23 | ||||||||||||||||
CMBS interest-only | 7,239,503 | -1 | 376,085 | 2,973 | (723 | ) | 378,335 | 41 | AAA | 1.04 | % | 4.88 | % | 3.45 | ||||||||||||||||||||
GNMA interest-only | 1,400,141 | -1 | 67,544 | 1,035 | (1,937 | ) | 66,642 | 34 | AA+ | 0.85 | % | 5.9 | % | 4.5 | ||||||||||||||||||||
GN construction securities | 27,538 | 28,178 | 503 | (275 | ) | 28,406 | 4 | AA+ | 3.89 | % | 3.56 | % | 9.42 | |||||||||||||||||||||
GN permanent securities | 36,232 | 36,515 | 258 | — | 36,773 | 11 | AA+ | 5.49 | % | 4.94 | % | 1.32 | ||||||||||||||||||||||
Total | $ | 10,950,979 | $ | 2,786,317 | $ | 33,222 | $ | (3,973 | ) | $ | 2,815,566 | |||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||||||||
Gross Unrealized | Weighted Average | |||||||||||||||||||||||||||||||||
Asset Type | Outstanding | Amortized | Gains | Losses | Carrying | # of | Rating (2) | Coupon % | Yield % | Remaining | ||||||||||||||||||||||||
Face Amount | Cost Basis | Value | Securities | Duration | ||||||||||||||||||||||||||||||
(years) | ||||||||||||||||||||||||||||||||||
CMBS | $ | 1,160,741 | $ | 1,156,230 | $ | 13,853 | $ | (5,147 | ) | $ | 1,164,936 | 101 | AAA | 4.24 | % | 4.08 | % | 4.88 | ||||||||||||||||
CMBS interest-only | 5,702,862 | -1 | 256,869 | 2,204 | (1,015 | ) | 258,058 | 21 | AAA | 1 | % | 4.19 | % | 3.38 | ||||||||||||||||||||
GNMA interest-only | 1,848,270 | -1 | 103,136 | 1,630 | (4,889 | ) | 99,877 | 36 | AA+ | 1.12 | % | 5.32 | % | 2.12 | ||||||||||||||||||||
FHLMC interest-only | 219,677 | -1 | 7,904 | 248 | — | 8,152 | 2 | AA+ | 0.95 | % | 5.21 | % | 3.04 | |||||||||||||||||||||
GN construction securities | 12,858 | 13,261 | 36 | (290 | ) | 13,007 | 8 | AA+ | 4.11 | % | 3.49 | % | 6.57 | |||||||||||||||||||||
GN permanent securities | 108,310 | 110,724 | 2,492 | — | 113,216 | 14 | AAA | 5.53 | % | 4.64 | % | 3.27 | ||||||||||||||||||||||
Total | $ | 9,052,718 | $ | 1,648,124 | $ | 20,463 | $ | (11,341 | ) | $ | 1,657,246 | |||||||||||||||||||||||
-1 | The amounts presented represent the principal amount of the mortgage loans outstanding in the pool in which the interest-only securities participate. | |||||||||||||||||||||||||||||||||
-2 | Represents the weighted average of the ratings of all securities in each asset type, expressed as an S&P equivalent rating. For each security rated by multiple rating agencies, the highest rating is used. Ratings provided were determined by third party rating agencies as of a particular date, may not be current and are subject to change (including the assignment of a “negative outlook” or “credit watch”) at any time. | |||||||||||||||||||||||||||||||||
The following is a breakdown of the carrying value of the Company’s securities by remaining maturity based upon expected cash flows at December 31, 2014 and 2013 ($ in thousands): | ||||||||||||||||||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||||||||||||||||
Asset Type | Within 1 year | 1-5 years | 5-10 years | After 10 years | Total | |||||||||||||||||||||||||||||
CMBS | $ | 474,357 | $ | 814,702 | $ | 1,016,351 | $ | — | $ | 2,305,410 | ||||||||||||||||||||||||
CMBS interest-only | 391 | 370,993 | 6,951 | — | 378,335 | |||||||||||||||||||||||||||||
GNMA interest-only | 1,356 | 42,105 | 23,181 | — | 66,642 | |||||||||||||||||||||||||||||
GN construction securities | — | 507 | 5,183 | 22,716 | 28,406 | |||||||||||||||||||||||||||||
GN permanent securities | 25,915 | 9,334 | 1,524 | — | 36,773 | |||||||||||||||||||||||||||||
Total | $ | 502,019 | $ | 1,237,641 | $ | 1,053,190 | $ | 22,716 | $ | 2,815,566 | ||||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||||||||
Asset Type | Within 1 year | 1-5 years | 5-10 years | After 10 years | Total | |||||||||||||||||||||||||||||
CMBS | $ | 175,042 | $ | 390,116 | $ | 599,778 | $ | — | $ | 1,164,936 | ||||||||||||||||||||||||
CMBS interest-only | 7,482 | 250,576 | — | — | 258,058 | |||||||||||||||||||||||||||||
GNMA interest-only | 371 | 94,001 | 5,505 | — | 99,877 | |||||||||||||||||||||||||||||
FHLMC interest-only | — | 8,152 | — | — | 8,152 | |||||||||||||||||||||||||||||
GN construction securities | — | 3,280 | 9,727 | — | 13,007 | |||||||||||||||||||||||||||||
GN permanent securities | 62,605 | 15,080 | 28,841 | 6,690 | 113,216 | |||||||||||||||||||||||||||||
Total | $ | 245,500 | $ | 761,205 | $ | 643,851 | $ | 6,690 | $ | 1,657,246 | ||||||||||||||||||||||||
There were $3,939,273 and $2,469,845 in unrealized losses on securities recorded as other than temporary impairments for the year ended December 31, 2014 and 2013 respectively, included in gain on securities in the combined consolidated statements of income. There were no unrealized losses on securities recorded as other than temporary impairments for the year ended December 31, 2012. For cash flow statement purposes, all receipts of interest from interest-only real estate securities are treated as part of cash flows from operations. |
REAL_ESTATE_AND_RELATED_LEASE_
REAL ESTATE AND RELATED LEASE INTANGIBLES, NET | 12 Months Ended | ||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||
Real Estate [Abstract] | |||||||||||||||||||||||||||
REAL ESTATE AND RELATED LEASE INTANGIBLES, NET | 5. REAL ESTATE AND RELATED LEASE INTANGIBLES, NET | ||||||||||||||||||||||||||
Acquisitions | |||||||||||||||||||||||||||
The purchase price for certain of the Company’s 2014 acquisitions was allocated to the assets acquired and liabilities assumed based upon their preliminary estimated fair values, which are based on the best estimates of management to date. The Company is in the process of finalizing its assessment of the fair value of the assets acquired and liabilities assumed. | |||||||||||||||||||||||||||
During the year ended December 31, 2014, the Company acquired the following properties ($ in thousands): | |||||||||||||||||||||||||||
Purchase Price Allocation | |||||||||||||||||||||||||||
Acquisition Date | Type | Primary Location(s) | Purchase Price | Land | Building | Intangibles | Properties | Ownership Interest (1) | |||||||||||||||||||
Aug-14 | Retail | O'Fallon, IL | $ | 8,001 | $ | 2,488 | $ | 5,388 | $ | 125 | 1 | 100.00% | |||||||||||||||
Aug-14 | Retail | El Centro, CA | 4,277 | 569 | 3,133 | 575 | 1 | 100.00% | |||||||||||||||||||
Aug-14 | Office | Richmond, VA | 19,850 | 4,539 | 12,633 | 2,678 | 7 | 77.50% | -2 | ||||||||||||||||||
Aug-14 | Industrial | Conyers, GA | 32,530 | 876 | 27,396 | 4,258 | 1 | 100.00% | |||||||||||||||||||
Sep-14 | Office | St. Paul, MN | 62,340 | 9,415 | 33,682 | 19,243 | 4 | 97.00% | -2 | ||||||||||||||||||
Oct-14 | Retail | Bennett, CO | 3,522 | 470 | 2,503 | 549 | 1 | 100.00% | |||||||||||||||||||
Oct-14 | Retail | Memphis, TN | 5,310 | 1,986 | 2,800 | 524 | 1 | 100.00% | |||||||||||||||||||
Nov-14 | Retail | Ankemy, IA | 16,510 | 3,180 | 10,513 | 2,817 | 1 | 100.00% | |||||||||||||||||||
Nov-14 | Retail | Springfield, MO | 11,675 | 3,658 | 6,296 | 1,721 | 1 | 100.00% | |||||||||||||||||||
Nov-14 | Retail | Sheldon, IA | 4,300 | 633 | 3,053 | 614 | 1 | 100.00% | |||||||||||||||||||
Nov-14 | Retail | Cedar Rapid, IA | 11,000 | 1,569 | 7,553 | 1,878 | 1 | 100.00% | |||||||||||||||||||
Nov-14 | Retail | Fairfield, IA | 10,695 | 1,132 | 7,779 | 1,784 | 1 | 100.00% | |||||||||||||||||||
Nov-14 | Retail | Muscatine, IA | 7,150 | 1,060 | 6,636 | (546 | ) | 1 | 100.00% | ||||||||||||||||||
Nov-14 | Retail | Owatonna, MN | 9,969 | 1,398 | 7,125 | 1,446 | 1 | 100.00% | |||||||||||||||||||
Nov-14 | Retail | Bellport, NY | 18,100 | 3,601 | 12,465 | 2,034 | 1 | 100.00% | |||||||||||||||||||
Nov-14 | Retail | Woodland Park, CO | 3,969 | 668 | 2,681 | 620 | 1 | 100.00% | |||||||||||||||||||
Nov-14 | Retail | Evansville, IN | 9,000 | 1,788 | 6,348 | 864 | 1 | 100.00% | |||||||||||||||||||
Dec-14 | Retail | Plattsmouth, NE | 7,979 | 1,446 | 5,220 | 1,313 | 1 | 100.00% | |||||||||||||||||||
Dec-14 | Retail | Worthington, MN | 8,320 | 1,432 | 5,510 | 1,378 | 1 | 100.00% | |||||||||||||||||||
Totals | $ | 254,497 | $ | 41,908 | $ | 168,714 | $ | 43,875 | |||||||||||||||||||
(1) Properties were consolidated as of acquisition date. | |||||||||||||||||||||||||||
(2) See Note 12 for further information regarding noncontrolling interests. | |||||||||||||||||||||||||||
During the year ended December 31, 2013, the Company acquired the following properties ($ in thousands): | |||||||||||||||||||||||||||
Purchase Price Allocation | |||||||||||||||||||||||||||
Acquisition Date | Type | Primary Location(s) | Purchase Price | Land | Building | Intangibles | Properties | Ownership Interest (1) | |||||||||||||||||||
Jan-13 | Retail | Durant, OK | $ | 4,991 | $ | 594 | $ | 3,900 | $ | 497 | 1 | 100.00% | |||||||||||||||
Feb-13 | Office | Southfield, MI | 18,000 | 1,147 | 7,707 | 9,146 | 1 | 90.00% | -2 | ||||||||||||||||||
Jun-13 | Office | Richmond, VA | 134,999 | 15,904 | 99,375 | 19,720 | 14 | 77.50% | -2 | ||||||||||||||||||
Oct-13 | Office | Minneapolis, MN | 51,278 | 9,447 | 27,811 | 14,020 | 1 | 90.00% | -2 | ||||||||||||||||||
Nov-13 | Condominium | Miami, FL | 80,000 | 10,487 | 67,895 | 1,618 | 1 | -3 | 100.00% | ||||||||||||||||||
Totals | $ | 289,268 | $ | 37,579 | $ | 206,688 | $ | 45,001 | |||||||||||||||||||
(1) Properties were consolidated as of acquisition date. | |||||||||||||||||||||||||||
(2) See Note 12 for further information regarding noncontrolling interests. | |||||||||||||||||||||||||||
(3) The Company acquired the property as a multi-family building and subsequently converted the apartments into 324 condominium units. | |||||||||||||||||||||||||||
During the year ended December 31, 2012, the Company acquired the following properties ($ in thousands): | |||||||||||||||||||||||||||
Purchase Price Allocation | |||||||||||||||||||||||||||
Acquisition Date | Type | Primary Location(s) | Purchase Price | Land | Building | Intangibles | Properties | Ownership Interest (1) | |||||||||||||||||||
Feb-12 | Retail | Pittsfield, MA | 14,701 | 1,801 | 11,556 | 1,344 | 1 | 100.00% | |||||||||||||||||||
Mar-12 | Retail | Various | 29,674 | 6,465 | 23,209 | — | 5 | 100.00% | |||||||||||||||||||
Mar-12 | Retail | Various | 16,626 | 3,910 | 12,716 | — | 3 | 100.00% | |||||||||||||||||||
Mar-12 | Retail | Various | 23,109 | 2,875 | 20,234 | — | 4 | 100.00% | |||||||||||||||||||
Mar-12 | Retail | Millbrook, AL | 6,942 | 970 | 5,972 | — | 1 | 100.00% | |||||||||||||||||||
Apr-12 | Retail | Columbia, SC | 7,800 | 2,148 | 4,629 | 1,023 | 1 | 100.00% | |||||||||||||||||||
Apr-12 | Retail | Snellville, GA | 8,000 | 1,293 | 5,724 | 983 | 1 | 100.00% | |||||||||||||||||||
Apr-12 | Retail | Greenwood, AR | 5,147 | 1,038 | 3,415 | 694 | 1 | 100.00% | |||||||||||||||||||
Apr-12 | Retail | Middleburg, FL | 1,177 | 184 | 789 | 204 | 1 | 100.00% | |||||||||||||||||||
Apr-12 | Retail | Satsuma, FL | 1,092 | 79 | 821 | 192 | 1 | 100.00% | |||||||||||||||||||
May-12 | Retail | Greenwood, SC | 4,962 | 1,350 | 3,612 | — | 1 | 100.00% | |||||||||||||||||||
May-12 | Retail | Orange City, FL | 1,317 | 229 | 853 | 235 | 1 | 100.00% | |||||||||||||||||||
Jul-12 | Retail | Yulee, FL | 1,339 | 329 | 781 | 229 | 1 | 100.00% | |||||||||||||||||||
Aug-12 | Retail | DeLeon Springs, FL | 1,242 | 239 | 782 | 221 | 1 | 100.00% | |||||||||||||||||||
Sep-12 | Retail | North Dartsmouth, MA | 29,965 | 7,033 | 19,745 | 3,187 | 1 | 100.00% | |||||||||||||||||||
Sep-12 | Retail | Mooresville, NC | 17,643 | 2,615 | 12,462 | 2,566 | 1 | 100.00% | |||||||||||||||||||
Sep-12 | Retail | Saratoga Springs, NY | 20,223 | 748 | 13,937 | 5,538 | 1 | 100.00% | |||||||||||||||||||
Sep-12 | Retail | Sennett, NY | 7,475 | 1,147 | 4,480 | 1,848 | 1 | 100.00% | |||||||||||||||||||
Sep-12 | Retail | Tilton, NH | 7,256 | 1,476 | 4,888 | 892 | 1 | 100.00% | |||||||||||||||||||
Sep-12 | Retail | Vineland, NJ | 22,506 | 1,482 | 17,742 | 3,282 | 1 | 100.00% | |||||||||||||||||||
Sep-12 | Retail | Waldorf, MD | 18,803 | 4,933 | 11,684 | 2,186 | 1 | 100.00% | |||||||||||||||||||
Oct-12 | Retail | Jonesboro, AR | 8,400 | 2,615 | 4,460 | 1,325 | 1 | 100.00% | |||||||||||||||||||
Nov-12 | Retail | Mt. Juliet, TN | 9,100 | 2,739 | 4,854 | 1,507 | 1 | 100.00% | |||||||||||||||||||
Dec-12 | Retail | Wichita, KS | 7,200 | 1,187 | 4,850 | 1,163 | 1 | 100.00% | |||||||||||||||||||
Dec-12 | Retail | Abingdon, VA | 4,688 | 682 | 3,733 | 273 | 1 | 100.00% | |||||||||||||||||||
Dec-12 | Retail | Ooltewah, TN | 5,703 | 903 | 3,957 | 843 | 1 | 100.00% | |||||||||||||||||||
Dec-12 | Retail | Palmview, TX | 6,819 | 938 | 4,837 | 1,044 | 1 | 100.00% | |||||||||||||||||||
Dec-12 | Condominium | Las Vegas, NV | 119,000 | 4,900 | 114,100 | — | — | -3 | 98.80% | -2 | |||||||||||||||||
Dec-12 | Retail | Aiken, SC | 5,926 | 1,588 | 3,480 | 858 | 1 | 100.00% | |||||||||||||||||||
Dec-12 | Retail | Johnson City, TN | 5,262 | 916 | 3,607 | 739 | 1 | 100.00% | |||||||||||||||||||
Dec-12 | Retail | Mt. Airy, NC | 4,493 | 729 | 3,353 | 411 | 1 | 100.00% | |||||||||||||||||||
Dec-12 | Retail | Gallatin, TN | 5,061 | 1,724 | 2,616 | 721 | 1 | 100.00% | |||||||||||||||||||
Totals | $ | 428,651 | $ | 61,265 | $ | 333,878 | $ | 33,508 | |||||||||||||||||||
(1) Properties were consolidated as of acquisition date. | |||||||||||||||||||||||||||
(2) See Note 12 for further information regarding noncontrolling interests. | |||||||||||||||||||||||||||
(3) The Company acquired an inventory of 427 condominium units. | |||||||||||||||||||||||||||
Sales | |||||||||||||||||||||||||||
The Company sold the following properties during the year ended December 31, 2014 ($ in thousands): | |||||||||||||||||||||||||||
Sales Date | Type | Primary Location(s) | Net Sales Proceeds | Net Book Value | Realized Gain/(Loss) | Properties | Units | ||||||||||||||||||||
May-14 | Retail | Tilton, NH | $ | 8,432 | $ | 6,743 | $ | 1,689 | 1 | 1 | |||||||||||||||||
Jun-14 | Office | Richmond, VA | 16,754 | 15,643 | 1,111 | 1 | 1 | ||||||||||||||||||||
Sep-14 | Retail | Yulee, FL | 1,436 | 1,246 | 190 | 1 | 1 | ||||||||||||||||||||
Sep-14 | Retail | Middleburg, FL | 1,262 | 1,077 | 185 | 1 | 1 | ||||||||||||||||||||
Sep-14 | Retail | Jonesboro, AR | 9,413 | 8,016 | 1,397 | 1 | 1 | ||||||||||||||||||||
Sep-14 | Retail | Mt. Juliet, TN | 10,168 | 8,724 | 1,444 | 1 | 1 | ||||||||||||||||||||
Various | Condominium | Las Vegas, NV | 52,976 | 33,925 | 19,051 | — | 113 | ||||||||||||||||||||
Various | Condominium | Miami, FL | 23,003 | 18,310 | 4,693 | — | 72 | ||||||||||||||||||||
Totals | $ | 123,444 | $ | 93,684 | $ | 29,760 | |||||||||||||||||||||
The Company sold the following properties during the year ended December 31, 2013 ($ in thousands): | |||||||||||||||||||||||||||
Sales Date | Type | Primary Location(s) | Net Sales Proceeds | Net Book Value | Realized Gain/(Loss) | Properties | Units | ||||||||||||||||||||
Various | Condominium | Las Vegas, NV | $ | 36,930 | $ | 23,365 | $ | 13,565 | — | 94 | |||||||||||||||||
The Company sold the following properties during the year ended December 31, 2012 ($ in thousands): | |||||||||||||||||||||||||||
Sales Date | Type | Primary Location(s) | Net Sales Proceeds | Net Book Value | Realized Gain/(Loss) | Properties | Units | ||||||||||||||||||||
Mar-12 | Retail | Various | $ | 30,304 | $ | 29,674 | $ | 630 | 5 | 5 | |||||||||||||||||
Mar-12 | Retail | Various | 16,944 | 16,626 | 318 | 3 | 3 | ||||||||||||||||||||
Mar-12 | Retail | Various | 23,635 | 23,109 | 526 | 4 | 4 | ||||||||||||||||||||
Nov-12 | Retail | Greenwood, SC | 4,763 | 4,962 | (199 | ) | 1 | 1 | |||||||||||||||||||
Totals | $ | 75,646 | $ | 74,371 | $ | 1,275 | |||||||||||||||||||||
On January 1, 2014, the Company early adopted the new discontinued operations standard and as the properties sold in the year ended December 31, 2014 will not represent a strategic shift (as the Company is not entirely exiting markets or property types), they have not been reflected as part of discontinued operations. | |||||||||||||||||||||||||||
The following table summarizes income from the properties sold during the years ended December 31, 2014, 2013 and 2012: | |||||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||
Operating lease income | $ | 3,377,079 | $ | 4,781,046 | $ | 787,211 | |||||||||||||||||||||
Tenant recoveries | 277,792 | 295,385 | — | ||||||||||||||||||||||||
Depreciation and amortization | (2,211,792 | ) | (1,803,878 | ) | (272,202 | ) | |||||||||||||||||||||
Income from properties sold | $ | 1,443,079 | $ | 3,272,553 | $ | 515,009 | |||||||||||||||||||||
The following unaudited pro forma information has been prepared based upon our historical combined consolidated financial statements and certain historical financial information of the acquired properties, which are accounted for as business combinations, and should be read in conjunction with the combined consolidated financial statements and notes thereto. The unaudited pro forma combined consolidated financial information reflects the 2013 acquisition adjustments made to present financial results as though the acquisition of the properties occurred on January 1, 2012 and 2014 acquisition adjustments made to present financial results as though the acquisition of the properties occurred on January 1, 2013. This unaudited pro forma information may not be indicative of the results that actually would have occurred if these transactions had been in effect on the dates indicated, nor do they purport to represent our future results of operations. | |||||||||||||||||||||||||||
Year Ended December 31, 2014 | |||||||||||||||||||||||||||
Company | Acquisitions | Consolidated | |||||||||||||||||||||||||
Historical | Pro Forma | ||||||||||||||||||||||||||
Operating lease income | $ | 56,649,278 | $ | 20,079,460 | $ | 76,728,738 | |||||||||||||||||||||
Net income | 97,626,251 | 5,222,032 | 102,848,283 | ||||||||||||||||||||||||
Net (income) loss attributable to noncontrolling interest in consolidated joint ventures | 368,670 | 256,930 | 625,600 | ||||||||||||||||||||||||
Net (income) loss attributable to predecessor unitholders | 12,628,031 | — | 12,628,031 | ||||||||||||||||||||||||
Net (income) loss attributable to noncontrolling interest in operating partnership | (66,436,274 | ) | (2,684,691 | ) | (69,120,965 | ) | |||||||||||||||||||||
Net income attributable to Class A common shareholders | 44,186,678 | 2,794,271 | 46,980,949 | ||||||||||||||||||||||||
Year Ended December 31, 2013 | |||||||||||||||||||||||||||
Company | Acquisitions | Consolidated | |||||||||||||||||||||||||
Historical | Pro Forma | ||||||||||||||||||||||||||
Operating lease income | $ | 37,394,416 | $ | 34,184,780 | $ | 71,579,196 | |||||||||||||||||||||
Net income | 188,733,086 | 4,880,518 | 193,613,604 | ||||||||||||||||||||||||
Net (income) loss attributable to noncontrolling interest in consolidated joint ventures | 1,098,150 | (107,046 | ) | 991,104 | |||||||||||||||||||||||
Net income attributable to preferred and common unit holders | 189,831,236 | 95,469 | 189,926,705 | ||||||||||||||||||||||||
Year Ended December 31, 2012 | |||||||||||||||||||||||||||
Company | Acquisitions | Consolidated | |||||||||||||||||||||||||
Historical | Pro Forma | ||||||||||||||||||||||||||
Operating lease income | $ | 8,331,338 | $ | 34,387,525 | $ | 42,718,863 | |||||||||||||||||||||
Net income | 169,454,280 | 5,030,503 | 174,484,783 | ||||||||||||||||||||||||
Net (income) loss attributable to noncontrolling interest in consolidated joint ventures | 49,084 | (1,160,377 | ) | (1,111,293 | ) | ||||||||||||||||||||||
Net income attributable to preferred and common unit holders | 169,503,364 | 3,870,126 | 173,373,490 | ||||||||||||||||||||||||
The most significant adjustments made in preparing the unaudited pro forma information were to: (i) include the incremental operating lease income, (ii) include the incremental depreciation, and (iii) adjusted for transaction costs associated with the properties acquired. | |||||||||||||||||||||||||||
The following table presents additional detail related to our real estate portfolio: | |||||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||||||||||||||||
Land | $ | 122,458,226 | $ | 91,609,368 | |||||||||||||||||||||||
Building | 569,773,422 | 474,301,322 | |||||||||||||||||||||||||
In-place leases and other intangibles | 127,359,203 | 83,909,105 | |||||||||||||||||||||||||
Real estate | 819,590,851 | 649,819,795 | |||||||||||||||||||||||||
Less: Accumulated depreciation and amortization | (50,604,658 | ) | (25,600,780 | ) | |||||||||||||||||||||||
Real estate and related lease intangibles, net | $ | 768,986,193 | $ | 624,219,015 | |||||||||||||||||||||||
The following table presents depreciation and amortization expense on real estate recorded by the Company: | |||||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||
Depreciation expense (1) | $ | 18,034,142 | $ | 13,150,757 | $ | 1,148,419 | |||||||||||||||||||||
Amortization expense | 10,237,716 | 7,816,507 | 1,944,892 | ||||||||||||||||||||||||
Total real estate depreciation and amortization expense | $ | 28,271,858 | $ | 20,967,264 | $ | 3,093,311 | |||||||||||||||||||||
-1 | Depreciation expense on the combined consolidated statements of income also includes $175,579, $547,308 and $547,308 of depreciation on corporate fixed assets for the years ended 2014, 2013 and 2012, respectively. | ||||||||||||||||||||||||||
The Company’s intangible assets are comprised of in-place leases, favorable/unfavorable leases compared to market leases and other intangibles. At December 31, 2014, gross intangible assets totaled $127,359,203 with total accumulated amortization of $19,892,779, resulting in net intangible assets of $107,466,424, including $(269,850) of unamortized favorable/unfavorable lease intangibles which are included in real estate and related lease intangibles, net on the combined consolidated balance sheets. At December 31, 2013, gross intangible assets totaled $83,909,105 with total accumulated amortization of $9,675,249, resulting in net intangible assets of $74,233,856 which are included in real estate and related lease intangibles, net on the combined consolidated balance sheets. For the year ended December 31, 2014, the Company recorded an offset against operating lease income of $652,065 for favorable/unfavorable leases, compared to $853,917 for the year ended December 31, 2013. | |||||||||||||||||||||||||||
The following table presents expected amortization expense during the next five years and thereafter related to the acquired in-place lease intangibles for property owned as of December 31, 2014: | |||||||||||||||||||||||||||
Year Ended December 31, | Amount | ||||||||||||||||||||||||||
2015 | $ | 14,821,524 | |||||||||||||||||||||||||
2016 | 12,924,316 | ||||||||||||||||||||||||||
2017 | 9,876,406 | ||||||||||||||||||||||||||
2018 | 7,807,079 | ||||||||||||||||||||||||||
2019 | 7,509,205 | ||||||||||||||||||||||||||
Thereafter | 47,112,706 | ||||||||||||||||||||||||||
Total | $ | 100,051,236 | |||||||||||||||||||||||||
There were $3,012,668 and $1,844,916 of unbilled rent receivables included in other assets on the combined consolidated balance sheets as of December 31, 2014 and December 31, 2013, respectively. | |||||||||||||||||||||||||||
There were unencumbered real estate of $85.7 million and $143.1 million of unencumbered real estate as of December 31, 2014 and December 31, 2013, respectively. | |||||||||||||||||||||||||||
The following is a schedule of contractual future minimum rent under leases (excluding property operating expenses paid directly by tenant under net leases or rent escalations under other leases from tenants) at December 31, 2014: | |||||||||||||||||||||||||||
Year Ended December 31, | Amount | ||||||||||||||||||||||||||
2015 | $ | 65,109,827 | |||||||||||||||||||||||||
2016 | 57,963,866 | ||||||||||||||||||||||||||
2017 | 54,677,652 | ||||||||||||||||||||||||||
2018 | 51,925,456 | ||||||||||||||||||||||||||
2019 | 47,282,871 | ||||||||||||||||||||||||||
Thereafter | 405,026,328 | ||||||||||||||||||||||||||
Total | $ | 681,986,000 | |||||||||||||||||||||||||
INVESTMENT_IN_UNCONSOLIDATED_J
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | |||||||||||||
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | 6. INVESTMENT IN UNCONSOLIDATED JOINT VENTURES | ||||||||||||
As of December 31, 2014, the Company had an aggregate investment of $6,041,333 in its equity method joint ventures with unaffiliated third parties. | |||||||||||||
As of December 31, 2014, the Company owned a 10% limited partnership interest in Ladder Capital Realty Income Partnership I LP (“LCRIP I”) to invest in first mortgage loans held for investment and acted as general partner and Manager to LCRIP I. The Company accounts for its interest in LCRIP I using the equity method of accounting as it exerts significant influence but the unrelated limited partners have substantive participating rights as well as kick-out rights. | |||||||||||||
As of December 31, 2014, the Company owned a 25% membership interest in Grace Lake JV, LLC (“Grace Lake JV”) which it received in connection with the refinancing of a first mortgage loan on an office building campus in Van Buren Township, MI. The Company accounts for its interest in Grace Lake JV using the equity method of accounting as it has a 25% investment, compared to the 75% investment of its operating partner. | |||||||||||||
The following is a summary of the Company’s investments in unconsolidated joint ventures, which we account for using the equity method, as of December 31, 2014 and 2013: | |||||||||||||
Entity | December 31, 2014 | December 31, 2013 | |||||||||||
Ladder Capital Realty Income Partnership I LP | $ | 3,898,435 | $ | 7,119,864 | |||||||||
Grace Lake JV, LLC | 2,142,898 | 2,142,898 | |||||||||||
Company’s investment in unconsolidated joint ventures | $ | 6,041,333 | $ | 9,262,762 | |||||||||
The following is a summary of the Company’s allocated earnings based on its ownership interests from investment in unconsolidated joint ventures for the years ended December 31, 2014, 2013 and 2012: | |||||||||||||
Year Ended December 31, | |||||||||||||
Entity | 2014 | 2013 | 2012 | ||||||||||
Ladder Capital Realty Income Partnership I LP | $ | 1,090,117 | $ | 2,568,358 | $ | 1,256,109 | |||||||
Grace Lake JV, LLC | 900,000 | 635,000 | — | ||||||||||
Earnings from investment in unconsolidated joint ventures | $ | 1,990,117 | $ | 3,203,358 | $ | 1,256,109 | |||||||
Ladder Capital Realty Income Partnership I LP | |||||||||||||
On April 15, 2011, the Company entered into a limited partnership agreement becoming the general partner and acquiring a 10% limited partnership interest in LCRIP I. Simultaneously with the execution of the LCRIP I Partnership agreement, the Company was engaged as the Manager of LCRIP I and is entitled to a fee based upon the average net equity invested in LCRIP I, which is subject to a fee reduction in the event average net equity invested in LCRIP I exceeds $100,000,000. During the year ended December 31, 2014, 2013 and 2012 the Company recorded $391,955, $785,925 and $744,182, respectively, in management fees, which is reflected in fee income in the combined consolidated statements of income. | |||||||||||||
During the year ended December 31, 2014, there were no sales of loans to LCRIP I. During the year ended December 31, 2013, the Company sold one loan to LCRIP I for aggregate proceeds of $17,200,000, which exceeded its carrying value by $139,901, and is included in sale of loans, net on the combined consolidated statements of operations. During the year ended December 31, 2012, the Company sold five loans to LCRIP I for aggregate proceeds of $140,900,000, which exceeded its carrying value by $1,000,000, and is included in sale of loans, net on the combined consolidated statements of operations. The Company has deferred 10% of the gain on sale of loans to LCRIP I, representing its 10% limited partnership interest, until such loans are subsequently sold by LCRIP I. | |||||||||||||
The Company is entitled to income allocations and distributions based upon its limited partnership interest of 10% and is eligible for additional distributions of up to 25% if certain return thresholds are met upon asset sale, full prepayment or other disposition. During the year ended December 31, 2014, 2013 and 2012, the return thresholds were met on certain assets that have been fully realized. The Company is obligated to provided LCRIP I 10% of any costs related to the assets held in its portfolio as of December 31, 2014. | |||||||||||||
Grace Lake JV, LLC | |||||||||||||
In connection with the origination of a loan in April 2012, the Company received a 25% equity kicker with the right to convert upon a capital event. On March 22, 2013, the loan was refinanced and the Company converted its interest into a 25% limited liability company membership interest in Grace Lake JV, which holds an investment in an office building complex. After taking into account the preferred return of 8.25% and the return of all equity remaining in the property to the Company’s operating partner, the Company is entitled to 25% of the distribution of all excess cash flows and all disposition proceeds upon any sale. The Company does not participate in losses from its investment. The Company is not legally required to provide any future funding to Grace Lake JV. | |||||||||||||
Combined Summary Financial Information for Unconsolidated Joint Ventures | |||||||||||||
The following is a summary of the combined results from operations of the unconsolidated joint ventures for the period in which the Company had investment interests during the year ended December 31, 2014, 2013 and 2012: | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Total revenues | $ | 26,058,808 | $ | 36,135,088 | $ | 17,373,332 | |||||||
Total expenses | $ | 16,863,743 | 10,553,956 | 5,800,282 | |||||||||
Net income | $ | 9,195,065 | $ | 25,581,132 | $ | 11,573,050 | |||||||
The following is a summary of the combined financial position of the unconsolidated joint ventures in which the Company had investment interests as of December 31, 2014 and 2013: | |||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||
Total assets | $ | 118,761,580 | $ | 190,415,719 | |||||||||
Total liabilities | 81,072,965 | 112,808,701 | |||||||||||
Partners’/members’ capital | $ | 37,688,615 | $ | 77,607,018 | |||||||||
DEBT_OBLIGATIONS
DEBT OBLIGATIONS | 12 Months Ended | ||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||
DEBT OBLIGATIONS | 7. DEBT OBLIGATIONS | ||||||||||||||||||||||||||
Committed Loan and Securities Repurchase Facilities | |||||||||||||||||||||||||||
The Company has entered into multiple committed master repurchase agreements in order to finance its lending activities. The Company has entered into three committed master repurchase agreements, as outlined in the table below, with multiple counterparties totaling $1,150,000,000 of credit capacity. Assets pledged as collateral under these facilities are limited to whole mortgage loans or participation interests in mortgage loans collateralized by first liens on commercial properties. The Company also has a term master repurchase agreement with a major U.S. bank to finance CMBS totaling $300,000,000. The Company’s repurchase facilities include covenants covering net worth requirements, minimum liquidity levels, and maximum leverage ratios. The Company believes it is in compliance with all covenants as of December 31, 2014 and 2013. | |||||||||||||||||||||||||||
The Company has the option to extend some of the current facilities subject to a number of conditions, including satisfaction of certain notice requirements, no event of default exists, and no margin deficit exists, all as defined in the repurchase facility agreements. The lenders have sole discretion with respect to the inclusion of collateral in these facilities, to determine the market value of the collateral on a daily basis, to be exercised on a good faith basis, and have the right to require additional collateral, a full and/or partial repayment of the facilities (margin call), or a reduction in unused availability under the facilities, sufficient to rebalance the facilities if the estimated market value of the included collateral declines. | |||||||||||||||||||||||||||
On April 29, 2014, the Company amended the terms of its master repurchase agreement with a major U.S. bank to finance loans the Company originates to temporarily increase financing capacity on its facility from $300,000,000 to $450,000,000 to enable the financing of one of its assets. The increase in capacity terminated in accordance with its terms. On October 30, 2014, the Company amended the terms of this master repurchase agreement to increase the financing capacity from $300,000,000 to $450,000,000, to temporarily increase financing capacity on its facility from $450,000,000 to $650,000,000 to enable the financing of one of its assets and to remove the concentration limit on balance sheet financing. The increase in capacity has since terminated in accordance with its terms. On December 31, 2014, the Series of LCFH were also added as additional guarantors. | |||||||||||||||||||||||||||
On June 17, 2014, the Company amended the terms of its master repurchase agreement with a major U.S. bank to finance loans the Company originates to modify the maximum advance rate available on all classes of assets. | |||||||||||||||||||||||||||
On June 30, 2014, the Company amended its master repurchase agreement with a major U.S. insurance company to finance loans the Company originates to extend the maturity date of the facility to December 31, 2014. The Company terminated this master repurchase agreement effective November 30, 2014. | |||||||||||||||||||||||||||
On December 31, 2014, the Company amended the terms of its master repurchase agreement with a major U.S. bank to finance loans the Company originates to, among other items, permit the financing of mezzanine debt and amend the leverage covenant to be consistent with those in most of our other credit facilities. The Series of LCFH were also added as additional guarantors. | |||||||||||||||||||||||||||
Uncommitted Securities Repurchase Facilities | |||||||||||||||||||||||||||
The Company has also entered into multiple master repurchase agreements with several counterparties collateralized by real estate securities. The borrowings under these agreements have typical advance rates between 65% and 95% of the collateral. | |||||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||||
Committed | Outstanding | Committed but | Interest Rate(s) | Current Term Maturity | Remaining | Eligible | Carrying | Fair | |||||||||||||||||||
Amount | Amount | Unfunded | at December 31, 2014 | Extension | Collateral (1) | Amount of | Value of | ||||||||||||||||||||
Options | Collateral | Collateral | |||||||||||||||||||||||||
$ | 450,000,000 | $ | 147,796,694 | $ | 302,203,306 | Between 2.42% and 2.66% | 10/30/16 | Two additional twelve month periods at Company’s option | First mortgage commercial real estate loans | $ | 278,530,141 | $ | 279,921,708 | ||||||||||||||
$ | 250,000,000 | $ | 138,711,146 | $ | 111,288,854 | Between 2.41% and 3.04% | 4/10/16 | One additional 364 day period at Company’s option | First mortgage and mezzanine commercial real estate loans | $ | 144,857,341 | $ | 145,748,847 | ||||||||||||||
$ | 450,000,000 | $ | 222,515,907 | $ | 227,484,093 | Between 2.42% and 3.16% | 5/26/15 | Two additional twelve month periods at Company’s option | First mortgage commercial real estate loans | $ | 378,573,214 | $ | 380,343,917 | ||||||||||||||
$ | 1,150,000,000 | $ | 509,023,747 | $ | 640,976,253 | $ | 801,960,696 | $ | 806,014,472 | ||||||||||||||||||
$ | 300,000,000 | $ | 174,852,934 | $ | 125,147,066 | 4/30/15 | N/A | Investment grade commercial real estate securities | $ | 214,616,911 | $ | 214,616,911 | |||||||||||||||
N/A (2) | $ | 747,789,000 | N/A (2) | Between 0.50% and 1.66% | Various | N/A | Investment grade commercial real estate securities | $ | 861,456,415 | $ | 861,456,415 | ||||||||||||||||
$ | 1,450,000,000 | $ | 1,431,665,681 | $ | 766,123,319 | $ | 1,878,034,022 | $ | 1,882,087,798 | ||||||||||||||||||
-1 | Collateral includes first mortgage and mezzanine real estate loans and investment grade commercial real estate securities. It does not include the real estate collateralizing such loans and securities. | ||||||||||||||||||||||||||
-2 | Represents uncommitted securities repurchase facilities for which there is no committed amount subject to future advances. | ||||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||
Committed | Outstanding | Committed but | Interest Rate(s) | Current Term Maturity | Remaining | Eligible | Carrying | Fair | |||||||||||||||||||
Amount | Amount | Unfunded | at December 31, 2013 | Extension | Collateral (1) | Amount of | Value of | ||||||||||||||||||||
Options | Collateral | Collateral | |||||||||||||||||||||||||
$ | 300,000,000 | $ | 22,749,015 | $ | 277,250,985 | Between 2.42% and 2.67% | 5/18/15 | Two additional twelve month periods at Company’s option | First mortgage commercial real estate loans | $ | 46,084,620 | $ | 46,483,618 | ||||||||||||||
$ | 250,000,000 | $ | 28,407,500 | $ | 221,592,500 | Between 2.42% and 3.04% | 4/10/14 | Two additional 364 day periods at Company’s option | First mortgage commercial real estate loans | $ | 41,428,429 | $ | 41,518,063 | ||||||||||||||
$ | 450,000,000 | $ | 60,423,328 | $ | 389,576,672 | Between 2.41% and 3.18% | 5/26/15 | Two additional twelve month periods at Company’s option | First mortgage commercial real estate loans | $ | 132,160,677 | $ | 132,673,364 | ||||||||||||||
$ | 300,000,000 | $ | 47,732,500 | $ | 252,267,500 | Between 2.66% and 2.67% | 1/24/14 | N/A | First mortgage commercial real estate loans | $ | 65,350,000 | $ | 65,813,055 | ||||||||||||||
$ | 1,300,000,000 | $ | 159,312,343 | $ | 1,140,687,657 | $ | 285,023,726 | $ | 286,488,100 | ||||||||||||||||||
$ | 600,000,000 | $ | 88,921,450 | $ | 511,078,550 | Between 1.26% and 1.27% | 4/30/15 | N/A | Investment grade commercial real estate securities | $ | 110,400,378 | $ | 110,400,378 | ||||||||||||||
N/A (2) | $ | 361,601,000 | N/A (2) | Between 0.42% and 1.67% | 1/17/14 | N/A | Investment grade commercial real estate securities | $ | 440,721,692 | $ | 440,721,692 | ||||||||||||||||
$ | 1,900,000,000 | $ | 609,834,793 | $ | 1,651,766,207 | $ | 836,145,796 | $ | 837,610,170 | ||||||||||||||||||
-1 | Collateral includes first mortgage real estate loans and investment grade commercial real estate securities. It does not include the real estate collateralizing such loans and securities. | ||||||||||||||||||||||||||
-2 | Represents uncommitted securities repurchase facilities for which there is no committed amount subject to future advances. | ||||||||||||||||||||||||||
Borrowings under Credit Agreement | |||||||||||||||||||||||||||
On January 24, 2013, the Company entered into a $50,000,000 credit agreement with one of its multiple committed financing counterparties in order to finance its securities and lending activities (the “Credit Agreement”). The Credit Agreement terminates on January 24, 2016 with no further extension options. As of December 31, 2014, there were $11,000,000 borrowings outstanding under the Company’s Credit Agreement. There were no borrowings outstanding as of December 31, 2013. Interest on the Credit Agreement is London Interbank Offered Rate (“LIBOR”) plus 275 basis points per annum payable monthly in arrears. LCFH is subject to customary affirmative covenants and negative covenants, including limitations on the assumption or incurrence of additional liens or debt, restrictions on certain payments or transfers of assets, and restrictions on the amendment of contracts or documents related to the assets under pledge. Under the credit agreement, LCFH is subject to customary financial covenants relating to maximum leverage, minimum tangible net worth, and minimum liquidity consistent with our other credit facilities. The Company’s ability to borrow under this credit agreement is dependent on, among other things, LCFH’s compliance with the financial covenants. The Company believes it is in compliance with all covenants as of December 31, 2014 and 2013. | |||||||||||||||||||||||||||
Borrowings under Credit and Security Agreement | |||||||||||||||||||||||||||
On October 31, 2014, the Company entered into a credit and security agreement (the “Credit and Security Agreement”) with a major banking institution to finance one of its assets in the amount of $46,750,000 and an interest rate of LIBOR plus 185 basis points. As of December 31, 2014, there were $46,750,000 borrowings outstanding under the Company’s Credit and Security Agreement. The Company is subject to customary affirmative and negative covenants under this agreement, including prohibitions on additional indebtedness or liens, restrictions on fundamental changes, and limitations to underlying loan actions or modifications. There are no financial covenants applicable to this agreement. | |||||||||||||||||||||||||||
Revolving Credit Facility | |||||||||||||||||||||||||||
On February 11, 2014, the Company entered into a revolving credit facility (the “Revolving Credit Facility”). The Revolving Credit Facility provides for an aggregate maximum borrowing amount of $75,000,000, including a $25,000,000 sublimit for the issuance of letters of credit. The Revolving Credit Facility is available on a revolving basis to finance the Company’s working capital needs and for general corporate purposes. The Revolving Credit Facility has a three-year maturity, which maturity may be extended by two twelve-month periods subject to the satisfaction of customary conditions, including the absence of default. Interest on the Revolving Credit Facility is one-month LIBOR plus 3.50% per annum payable monthly in arrears. | |||||||||||||||||||||||||||
The obligations under the Revolving Credit Facility are guaranteed by the Company and certain of its subsidiaries. The Revolving Credit Facility is secured by a pledge of the shares of (or other ownership or equity interests in) certain subsidiaries to the extent the pledge is not restricted under existing regulations, law or contractual obligations. | |||||||||||||||||||||||||||
LCFH is subject to customary affirmative covenants and negative covenants, including limitations on the incurrence of additional debt, liens, restricted payments, sales of assets and affiliate transactions. In addition, under the Revolving Credit Facility, LCFH is required to comply with financial covenants relating to minimum net worth, maximum leverage, minimum liquidity, and minimum fixed charge coverage, consistent with our other credit facilities. The Company’s ability to borrow under the Revolving Credit Facility is dependent on, among other things, LCFH’s compliance with the financial covenants. The Revolving Credit Facility contains customary events of default, including non-payment of principal or interest, fees or other amounts, failure to perform or observe covenants, cross-default to other indebtedness, the rendering of judgments against the Company or certain of our subsidiaries to pay certain amounts of money and certain events of bankruptcy or insolvency. | |||||||||||||||||||||||||||
As of December 31, 2014, there were $25,000,000 borrowings outstanding under the Revolving Credit Facility. | |||||||||||||||||||||||||||
Mortgage Loan Financing | |||||||||||||||||||||||||||
During the year ended December 31, 2014, the Company executed 13 term debt agreements to finance properties in its real estate portfolio. During the year ended December 31, 2013, the Company executed 16 term debt agreements to finance such real estate. These nonrecourse debt agreements are fixed rate financing at rates ranging from 4.25% to 6.75%, maturing in 2018, 2020, 2021, 2022, 2023 and 2024. These loans have carrying amounts of $447,409,690 and $291,053,406, net of unamortized premiums of $5,250,471 and $3,807,479 at December 31, 2014 and 2013, respectively, representing proceeds received upon financing greater than the contractual amounts due under the agreements. The premiums are being amortized over the remaining life of the respective debt instruments using the effective interest method. The Company recorded $629,022, $533,818 and $32,205 of premium amortization, which decreased interest expense, for the year ended December 31, 2014, 2013 and 2012 respectively. The loans are collateralized by real estate and related lease intangibles, net of $591,612,770 and $401,262,302 as of December 31, 2014 and 2013, respectively. | |||||||||||||||||||||||||||
Borrowings from the Federal Home Loan Bank (“FHLB”) | |||||||||||||||||||||||||||
On July 11, 2012, Tuebor, a wholly-owned consolidated subsidiary, became a member of the FHLB and subsequently drew its first secured funding advances from the FHLB. On May 29, 2014, Tuebor’s advance limit was increased to the lesser of $1.9 billion or 33% of Ladder Capital Corp’s total assets. | |||||||||||||||||||||||||||
As of December 31, 2014, Tuebor had $1,611,000,000 of borrowings outstanding (with an additional $289,000,000 of committed term financing available from the FHLB), with terms of overnight to 10 years, interest rates of 0.30% to 2.74%, and advance rates of 50.0% to 95.2% of the collateral. As of December 31, 2014, collateral for the borrowings was comprised of $1,617,225,211 of CMBS and U.S. Agency Securities and $451,762,840 of first mortgage commercial real estate loans. | |||||||||||||||||||||||||||
As of December 31, 2013, Tuebor had $989,000,000 of borrowings outstanding (with an additional $416,000,000 of committed term financing available from the FHLB), with terms of overnight to 7 years, interest rates of 0.20% to 2.40%, and advance rates of 57% to 95% of the collateral. As of December 31, 2013, collateral for the borrowings was comprised of $1,013,640,649 of CMBS and U.S. Agency Securities and $276,722,665 of first mortgage commercial real estate loans. | |||||||||||||||||||||||||||
Tuebor is subject to state regulations which require that dividends (including dividends to the Company as its parent) may only be made with regulatory approval. However, there can be no assurance that we would obtain such approval if sought. Largely as a result of this restriction, approximately $210.4 million of the member’s capital were restricted from transfer to Tuebor’s parent without prior approval of state insurance regulators at December 31, 2014. | |||||||||||||||||||||||||||
Senior Unsecured Notes | |||||||||||||||||||||||||||
On August 1, 2014, LCFH issued $300,000,000 in aggregate principal amount of 5.875% senior notes due 2021 (the “2021 Notes”). The 2021 Notes require interest payments semi-annually in cash in arrears on February 1 and August 1 of each year, beginning on February 1, 2015. The 2021 Notes will mature on August 1, 2021. The 2021 Notes are unsecured and are subject to incurrence-based covenants, including limitations on the incurrence of additional debt, restricted payments, liens, sales of assets, affiliate transactions and other covenants typical for financings of this type. | |||||||||||||||||||||||||||
On September 19, 2012, LCFH issued $325,000,000 in aggregate principal amount of 7.375% Senior Notes due October 1, 2017 (the “2017 Notes”). The 2017 Notes require interest payments semi-annually in cash in arrears on April 1 and October 1 of each year, beginning on September 19, 2012. The 2017 Notes are unsecured and are subject to incurrence-based covenants, including limitations on the incurrence of additional debt, restricted payments, liens, sales of assets, affiliate transactions and other covenants typical for financings of this type. | |||||||||||||||||||||||||||
During the year ended December 31, 2014 the Company retired $5,445,000 of principal of the 2017 Notes for a repurchase price of $5,594,738 recognizing a $149,738 loss on extinguishment of debt. The remaining $319,555,000 in aggregate principal amount of the 2017 Senior Notes is due October 2, 2017. | |||||||||||||||||||||||||||
LCFH issued the 2021 Notes and the 2017 Notes (collectively, the “Notes”) with Ladder Capital Finance Corporation (“LCFC”), as co-issuers on a joint and several basis. LCFC is a 100% owned finance subsidiary of LCFH with no assets, operations, revenues or cash flows other than those related to the issuance, administration and repayment of the Notes. Ladder Capital Corp and certain subsidiaries of LCFH currently guarantee the obligations under the Notes and the indenture. Ladder Capital Corp is the general partner of LCFH and, through LCFH and its subsidiaries, operates the Ladder Capital business. As of December 31, 2014, Ladder Capital Corp has a 51.9% economic interest in LCFH, and has a majority voting interest and controls the management of LCFH as a result of its ability to appoint board members. As a result, Ladder Capital Corp consolidates the financial results of LCFH and records noncontrolling interest for the economic interest in LCFH held by the Continuing LCFH Limited Partners. In addition, Ladder Capital Corp is subject to federal, state and local income taxes due to its corporate structure. Other than the noncontrolling interest in the Operating Partnership and federal, state and local income taxes, there are no material differences between Ladder Capital Corp’s combined consolidated financial statements and LCFH’s consolidated financial statements. | |||||||||||||||||||||||||||
Combined Maturity of Debt Obligations | |||||||||||||||||||||||||||
The following schedule reflects the Company’s contractual payments under all borrowings by maturity: | |||||||||||||||||||||||||||
Period ending December 31, | Borrowings by | ||||||||||||||||||||||||||
Maturity (1) | |||||||||||||||||||||||||||
2015 | $ | 2,155,163,140 | |||||||||||||||||||||||||
2016 | 484,321,730 | ||||||||||||||||||||||||||
2017 | 502,696,941 | ||||||||||||||||||||||||||
2018 | 54,558,934 | ||||||||||||||||||||||||||
2019 | 28,458,573 | ||||||||||||||||||||||||||
Thereafter | 961,930,576 | ||||||||||||||||||||||||||
Total | $ | 4,187,129,894 | |||||||||||||||||||||||||
(1) Contractual payments under current maturities, some of which are subject to extensions. | |||||||||||||||||||||||||||
The Company’s debt facilities are subject to covenants which require the Company to maintain a minimum level of total equity. Largely as a result of this restriction, approximately $900.3 million of the total equity is restricted from payment as a dividend by the Company at December 31, 2014. |
FAIR_VALUE_OF_FINANCIAL_INSTRU
FAIR VALUE OF FINANCIAL INSTRUMENTS | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||
FAIR VALUE OF FINANCIAL INSTRUMENTS | 8. FAIR VALUE OF FINANCIAL INSTRUMENTS | ||||||||||||||||||||
Fair value is based upon market quotations, broker quotations, counterparty quotations or pricing services quotations, which provide valuation estimates based upon reasonable market order indications and are subject to significant variability based on market conditions, such as interest rates, credit spreads and market liquidity. The fair value of the mortgage loan receivables held for sale is based upon a securitization model utilizing market data from recent securitization spreads and pricing. | |||||||||||||||||||||
Fair Value Summary Table | |||||||||||||||||||||
The carrying values and estimated fair values of the Company’s financial instruments, which are both reported at fair value on a recurring basis (as indicated) or amortized cost/par, at December 31, 2014 and 2013 are as follows ($ in thousands): | |||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||
Weighted Average | |||||||||||||||||||||
Outstanding | Amortized | Fair Value | Fair Value | Yield | Remaining | ||||||||||||||||
Face Amount | Cost Basis | Method | % | Maturity/Duration (years) | |||||||||||||||||
Assets: | |||||||||||||||||||||
CMBS(1) | $ | 2,247,565 | $ | 2,277,995 | $ | 2,305,409 | Internal model, third-party inputs | 2.6 | % | 4.23 | |||||||||||
CMBS interest-only(1) | 7,239,503 | -8 | 376,085 | 378,335 | Internal model, third-party inputs | 4.88 | % | 3.45 | |||||||||||||
GNMA interest-only(1) | 1,400,141 | -8 | 67,543 | 66,642 | Internal model, third-party inputs | 5.9 | % | 4.5 | |||||||||||||
GN construction securities(1) | 27,538 | 28,178 | 28,406 | Internal model, third-party inputs | 3.56 | % | 9.42 | ||||||||||||||
GN permanent securities(1) | 36,232 | 36,515 | 36,773 | Internal model, third-party inputs | 4.94 | % | 1.32 | ||||||||||||||
Mortgage loan receivable held for investment, at amortized cost | 1,536,923 | 1,521,053 | 1,540,388 | Discounted Cash Flow(4) | 7.33 | % | 1.96 | ||||||||||||||
Mortgage loan receivable held for sale | 417,955 | 417,955 | 421,991 | Discounted Cash Flow(5) | 4.31 | % | 9.72 | ||||||||||||||
FHLB stock(6) | 72,340 | 72,340 | 72,340 | -6 | 3.5 | % | N/A | ||||||||||||||
Nonhedge derivatives(1)(7) | 125,050 | N/A | 424 | Counterparty quotations | N/A | 3.45 | |||||||||||||||
Liabilities: | |||||||||||||||||||||
Repurchase agreements - short-term | 1,331,603 | 1,331,603 | 1,331,603 | Discounted Cash Flow(2) | 1.32 | % | 0.23 | ||||||||||||||
Repurchase agreements - long-term | 100,062 | 100,062 | 100,062 | Discounted Cash Flow(2) | 1.89 | % | 1.59 | ||||||||||||||
Borrowings under credit agreement | 11,000 | 11,000 | 11,000 | Discounted Cash Flow(9) | 2.91 | % | 1.07 | ||||||||||||||
Borrowings under credit and security agreement | 46,750 | 46,750 | 46,750 | Discounted Cash Flow(9) | 2.01 | % | 1.77 | ||||||||||||||
Revolving credit facility | 25,000 | 25,000 | 25,000 | Discounted Cash Flow(9) | 3.66 | % | 2.12 | ||||||||||||||
Mortgage loan financing | 442,753 | 447,410 | 455,846 | Discounted Cash Flow(3) | 4.85 | % | 8.47 | ||||||||||||||
Borrowings from the FHLB | 1,611,000 | 1,611,000 | 1,616,373 | Discounted Cash Flow(2) | 0.79 | % | 2.05 | ||||||||||||||
Senior unsecured notes | 619,555 | 619,555 | 611,745 | Broker quotations, pricing services | 6.65 | % | 4.61 | ||||||||||||||
Nonhedge derivatives(1)(7) | 1,428,700 | N/A | 13,446 | Counterparty quotations | N/A | 1.41 | |||||||||||||||
-1 | Measured at fair value on a recurring basis with the net unrealized gains or losses on all securities, except for Agency interest-only securities, recorded as a component of other comprehensive income (loss) in equity. | ||||||||||||||||||||
-2 | Fair value for repurchase agreement liabilities is estimated to approximate carrying amount primarily due to the short interest rate reset risk (30 days) of the financings and the high credit quality of the assets collateralizing these positions. For the borrowings from the FHLB, the carrying value approximates the fair value discounting the expected cash flows. If the collateral is determined to be impaired, the related financing would be revalued accordingly. There are no impairments on any positions. | ||||||||||||||||||||
-3 | For the mortgage loan financing, the carrying value approximates the fair value discounting the expected cash flows at current market rates. If the collateral is determined to be impaired, the related financing would be revalued accordingly. There are no impairments on any positions. | ||||||||||||||||||||
-4 | Fair value for floating rate mortgage loan receivables, held for investment is estimated to approximate the outstanding face amount given the short interest rate reset risk (30 days) and no significant change in credit risk. Fair value for fixed rate mortgage loan receivables, held for investment is measured using a hypothetical securitization model utilizing market data from recent securitization spreads and pricing. | ||||||||||||||||||||
-5 | Fair value for mortgage loan receivables, held for sale is measured using a hypothetical securitization model utilizing market data from recent securitization spreads and pricing. | ||||||||||||||||||||
-6 | The fair value of the FHLB stock approximates outstanding face amount as the Company’s wholly-owned subsidiary is restricted from trading the stock and can only put the stock back to the FHLB, at the FHLB’s discretion, at par. | ||||||||||||||||||||
-7 | The outstanding face amount of the nonhedge derivatives represents the notional amount of the underlying contracts. | ||||||||||||||||||||
-8 | Represents notional outstanding balance of underlying collateral. | ||||||||||||||||||||
-9 | Fair value for borrowings under credit agreement, credit and security agreement and revolving credit facility is estimated to approximate carrying amount primarily due to the short interest rate reset risk (30 days) of the financings and the high credit quality of the assets collateralizing these positions. | ||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||
Weighted Average | |||||||||||||||||||||
Outstanding | Amortized | Fair Value | Fair Value | Yield | Remaining | ||||||||||||||||
Face Amount | Cost Basis | Method | % | Maturity/Duration (years) | |||||||||||||||||
Assets: | |||||||||||||||||||||
CMBS(1) | $ | 1,160,741 | $ | 1,156,230 | $ | 1,164,936 | Broker quotations, pricing services | 4.08 | % | 4.88 | |||||||||||
CMBS interest-only(1) | 5,702,862 | -8 | 256,869 | 258,058 | Broker quotations, pricing services | 4.19 | % | 3.38 | |||||||||||||
GNMA interest-only(1) | 1,848,270 | -8 | 103,136 | 99,877 | Broker quotations, pricing services | 5.32 | % | 2.12 | |||||||||||||
FHLMC interest-only(1) | 219,677 | -8 | 7,904 | 8,152 | Broker quotations, pricing services | 5.21 | % | 3.04 | |||||||||||||
GN construction securities(1) | 12,858 | 13,261 | 13,007 | Broker quotations, pricing services | 3.49 | % | 6.57 | ||||||||||||||
GN permanent securities(1) | 108,310 | 110,724 | 113,216 | Broker quotations, pricing services | 4.64 | % | 3.27 | ||||||||||||||
Mortgage loan receivable held for investment, at amortized cost | 549,574 | 539,078 | 541,578 | Discounted Cash Flow(4) | 9.76 | % | 2.14 | ||||||||||||||
Mortgage loan receivable held for sale | 440,775 | 440,490 | 455,804 | Discounted Cash Flow(5) | 5.47 | % | 9.62 | ||||||||||||||
FHLB stock(6) | 49,450 | 49,450 | 49,450 | -6 | 3.5 | % | N/A | ||||||||||||||
Nonhedge derivatives(1)(7) | 808,700 | N/A | 8,244 | Counterparty quotations | N/A | 0.5 | |||||||||||||||
Liabilities: | |||||||||||||||||||||
Repurchase agreements - short-term | 409,334 | 409,334 | 409,334 | Discounted Cash Flow(2) | 1.46 | % | 0.04 | ||||||||||||||
Repurchase agreements - long-term | 200,501 | 200,501 | 200,501 | Discounted Cash Flow(2) | 2.13 | % | 1.49 | ||||||||||||||
Mortgage loan financing | 287,246 | 291,053 | 278,129 | Discounted Cash Flow(3) | 4.84 | % | 8.7 | ||||||||||||||
Borrowings from the FHLB | 989,000 | 989,000 | 987,896 | Discounted Cash Flow(2) | 0.57 | % | 1.6 | ||||||||||||||
Senior unsecured notes | 325,000 | 325,000 | 341,250 | Broker quotations, pricing services | 7.38 | % | 3.75 | ||||||||||||||
Nonhedge derivatives(1)(7) | 154,500 | N/A | 7,031 | Counterparty quotations | N/A | 4.55 | |||||||||||||||
-1 | Measured at fair value on a recurring basis with the net unrealized gains or losses on all securities, except for Agency interest-only securities, recorded as a component of other comprehensive income (loss) in equity. | ||||||||||||||||||||
-2 | Fair value for repurchase agreement liabilities is estimated to approximate carrying amount primarily due to the short interest rate reset risk (30 days) of the financings and the high credit quality of the assets collateralizing these positions. For the borrowings from the FHLB, the carrying value approximates the fair value discounting the expected cash flows. If the collateral is determined to be impaired, the related financing would be revalued accordingly. There are no impairments on any positions. | ||||||||||||||||||||
-3 | For the mortgage loan financing, the carrying value approximates the fair value discounting the expected cash flows at current market rates. If the collateral is determined to be impaired, the related financing would be revalued accordingly. There are no impairments on any positions. | ||||||||||||||||||||
-4 | Fair value for floating rate mortgage loan receivables, held for investment is estimated to approximate the outstanding face amount given the short interest rate reset risk (30 days) and no significant change in credit risk. Fair value for fixed rate mortgage loan receivables, held for investment is measured using a hypothetical securitization model utilizing market data from recent securitization spreads and pricing. | ||||||||||||||||||||
-5 | Fair value for mortgage loan receivables, held for sale is measured using a hypothetical securitization model utilizing market data from recent securitization spreads and pricing. | ||||||||||||||||||||
-6 | The fair value of the FHLB stock approximates outstanding face amount as the Company’s wholly-owned subsidiary is restricted from trading the stock and can only put the stock back to the FHLB, at the FHLB’s discretion, at par. | ||||||||||||||||||||
-7 | The outstanding face amount of the nonhedge derivatives represents the notional amount of the underlying contracts. | ||||||||||||||||||||
-8 | Represents notional outstanding balance of underlying collateral. | ||||||||||||||||||||
The following table summarizes the Company’s financial assets and liabilities, which are both reported at fair value on a recurring basis (as indicated) or amortized cost/par, at December 31, 2014 and 2013 ($ in thousands): | |||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||
Financial Instruments Reported at Fair Value on Combined Consolidated Statements of Financial Condition | Outstanding Face | Fair Value | |||||||||||||||||||
Amount | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||
Assets: | |||||||||||||||||||||
CMBS(1) | $ | 2,247,565 | $ | — | $ | — | $ | 2,305,409 | $ | 2,305,409 | |||||||||||
CMBS interest-only(1) | 7,239,503 | -2 | — | — | 378,335 | 378,335 | |||||||||||||||
GNMA interest-only(1) | 1,400,141 | -2 | — | 66,642 | — | 66,642 | |||||||||||||||
GN construction securities(1) | 27,538 | — | 28,406 | — | 28,406 | ||||||||||||||||
GN permanent securities(1) | 36,232 | — | 36,773 | — | 36,773 | ||||||||||||||||
Financial Instruments Not Reported at Fair Value on Combined Consolidated Statements of Financial Condition | Outstanding Face | Fair Value | |||||||||||||||||||
Amount | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||
Assets: | |||||||||||||||||||||
Mortgage loan receivable held for investment | $ | 1,536,923 | $ | — | $ | — | $ | 1,540,388 | $ | 1,540,388 | |||||||||||
Mortgage loan receivable held for sale | 417,955 | — | — | 421,991 | 421,991 | ||||||||||||||||
FHLB stock | 72,340 | — | — | 72,340 | 72,340 | ||||||||||||||||
Nonhedge derivatives(1) | 125,050 | — | 424 | — | 424 | ||||||||||||||||
Liabilities: | 0 | ||||||||||||||||||||
Repurchase agreements - short-term | 1,331,603 | — | 68,357 | 1,263,246 | 1,331,603 | ||||||||||||||||
Repurchase agreements - long-term | 100,062 | — | — | 100,062 | 100,062 | ||||||||||||||||
Borrowings under credit agreement | 11,000 | — | — | 11,000 | 11,000 | ||||||||||||||||
Borrowings under credit and security agreement | 46,750 | — | — | 46,750 | 46,750 | ||||||||||||||||
Revolving credit facility | 25,000 | — | — | 25,000 | 25,000 | ||||||||||||||||
Mortgage loan financing | 442,753 | — | — | 455,846 | 455,846 | ||||||||||||||||
Borrowings from the FHLB | 1,611,000 | — | — | 1,616,373 | 1,616,373 | ||||||||||||||||
Senior unsecured notes | 619,555 | — | — | 611,745 | 611,745 | ||||||||||||||||
Nonhedge derivatives(1) | 1,428,700 | — | 13,446 | — | 13,446 | ||||||||||||||||
-1 | Measured at fair value on a recurring basis. The outstanding face amount of the nonhedge derivatives represents the notional amount of the underlying contracts. | ||||||||||||||||||||
(2) | Represents notional outstanding balance of underlying collateral. | ||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||
Financial Instruments Reported at Fair Value on Combined Consolidated Statements of Financial Condition | Outstanding Face | Fair Value | |||||||||||||||||||
Amount | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||
Assets: | |||||||||||||||||||||
CMBS(1) | $ | 1,160,741 | $ | — | $ | 1,164,936 | $ | — | $ | 1,164,936 | |||||||||||
CMBS interest-only(1) | 5,702,862 | -2 | — | 258,058 | — | 258,058 | |||||||||||||||
GNMA interest-only(1) | 1,848,270 | -2 | — | 99,877 | — | 99,877 | |||||||||||||||
FHLMC interest-only(1) | 219,677 | -2 | — | 8,152 | — | 8,152 | |||||||||||||||
GN construction securities(1) | 12,858 | — | 13,007 | — | 13,007 | ||||||||||||||||
GN permanent securities(1) | 108,310 | — | 113,216 | — | 113,216 | ||||||||||||||||
Financial Instruments Not Reported at Fair Value on Combined Consolidated Statements of Financial Condition | Outstanding Face | Fair Value | |||||||||||||||||||
Amount | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||
Assets: | |||||||||||||||||||||
Mortgage loan receivable held for investment | 549,574 | — | — | 541,578 | 541,578 | ||||||||||||||||
Mortgage loan receivable held for sale | 440,775 | — | — | 455,804 | 455,804 | ||||||||||||||||
FHLB stock | 49,450 | — | — | 49,450 | 49,450 | ||||||||||||||||
Nonhedge derivatives(1) | 808,700 | — | 8,244 | — | 8,244 | ||||||||||||||||
Liabilities: | 0 | ||||||||||||||||||||
Repurchase agreements - short-term | 409,334 | — | 409,334 | — | 409,334 | ||||||||||||||||
Repurchase agreements - long-term | 200,501 | — | 200,501 | — | 200,501 | ||||||||||||||||
Mortgage loan financing | 287,246 | — | — | 278,129 | 278,129 | ||||||||||||||||
Borrowings from the FHLB | 989,000 | — | — | 987,896 | 987,896 | ||||||||||||||||
Senior unsecured notes | 325,000 | — | 341,250 | — | 341,250 | ||||||||||||||||
Nonhedge derivatives(1) | 154,500 | — | 7,031 | — | 7,031 | ||||||||||||||||
-1 | Measured at fair value on a recurring basis. The outstanding face amount of the nonhedge derivatives represents the notional amount of the underlying contracts. | ||||||||||||||||||||
(2) | Represents notional outstanding balance of underlying collateral. | ||||||||||||||||||||
The following table summarizes changes in level 3 of financial instruments reported at fair value on the combined consolidated statements of financial condition for the year ended December 31, 2014. There were no changes for the the year ended December 31, 2013. ($ in thousands): | |||||||||||||||||||||
Level 3 | |||||||||||||||||||||
Balance at December 31, 2013 | $ | — | |||||||||||||||||||
Transfer from level 2 | 1,422,995 | ||||||||||||||||||||
Purchases | 2,121,503 | ||||||||||||||||||||
Sales | (692,306 | ) | |||||||||||||||||||
Paydowns/maturities | (155,525 | ) | |||||||||||||||||||
Amortization of premium/discount | (60,993 | ) | |||||||||||||||||||
Unrealized gain/(loss) | 19,769 | ||||||||||||||||||||
Realized gain/(loss) on sale | 28,301 | ||||||||||||||||||||
Balance at December 31, 2014 | $ | 2,683,744 | |||||||||||||||||||
DERIVATIVE_INSTRUMENTS
DERIVATIVE INSTRUMENTS | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||
DERIVATIVE INSTRUMENTS | 9. DERIVATIVE INSTRUMENTS | ||||||||||||||
The Company uses derivative instruments primarily to economically manage the fair value variability of fixed rate assets caused by interest rate fluctuations and overall portfolio market risk. The following is a breakdown of the derivatives outstanding as of December 31, 2014 and 2013: | |||||||||||||||
December 31, 2014 | |||||||||||||||
Fair Value | Remaining | ||||||||||||||
Maturity | |||||||||||||||
Contract Type | Notional | Asset(1) | Liability(1) | (years) | |||||||||||
Caps | |||||||||||||||
1MO LIBOR | $ | 71,250,000 | $ | 4 | $ | — | 0.66 | ||||||||
Futures | |||||||||||||||
5-year Swap | $ | 496,200,000 | $ | 108,562 | $ | 27,732 | 0.25 | ||||||||
10-year Swap | 842,800,000 | 103,765 | 8,258,356 | 0.25 | |||||||||||
Total futures | 1,339,000,000 | 212,327 | 8,286,088 | ||||||||||||
Swaps | |||||||||||||||
3MO LIBOR | 100,000,000 | — | 4,505,444 | 3.18 | |||||||||||
Credit Derivatives | |||||||||||||||
CMBX | 10,000,000 | 211,170 | — | 6.8 | |||||||||||
CDX | 33,500,000 | — | 653,986 | 3.97 | |||||||||||
Total credit derivatives | 43,500,000 | 211,170 | 653,986 | ||||||||||||
Total derivatives | $ | 1,553,750,000 | $ | 423,501 | $ | 13,445,518 | |||||||||
December 31, 2013 | |||||||||||||||
Fair Value | Remaining | ||||||||||||||
Maturity | |||||||||||||||
Contract Type | Notional | Asset(1) | Liability(1) | (years) | |||||||||||
Caps | |||||||||||||||
1MO LIBOR | $ | 71,250,000 | $ | — | $ | — | 0.14 | ||||||||
Futures | |||||||||||||||
5-year Swap | $ | 45,000,000 | $ | 402,719 | $ | — | 0.25 | ||||||||
10-year Swap | 753,700,000 | 7,589,466 | — | 0.25 | |||||||||||
Total futures | 798,700,000 | 7,992,185 | — | ||||||||||||
Swaps | |||||||||||||||
3MO LIBOR | 121,000,000 | — | 6,420,495 | 4.51 | |||||||||||
Credit Derivatives | |||||||||||||||
CMBX | 10,000,000 | 252,170 | — | 8.38 | |||||||||||
CDX | 33,500,000 | — | 610,538 | 4.97 | |||||||||||
Total credit derivatives | 43,500,000 | 252,170 | 610,538 | ||||||||||||
Total derivatives | $ | 1,034,450,000 | $ | 8,244,355 | $ | 7,031,033 | |||||||||
(1) Shown as derivative instruments, at fair value, in the accompanying combined consolidated balance sheets. | |||||||||||||||
The following table indicates the net realized gains/(losses) and unrealized appreciation/(depreciation) on derivatives, by primary underlying risk exposure, as included in net result from derivatives transactions in the combined consolidated statements of operations for the year ended December 31, 2014, 2013 and 2012: | |||||||||||||||
Year Ended December 31, 2014 | |||||||||||||||
Unrealized | Realized | Net Result | |||||||||||||
Gain/(Loss) | Gain/(Loss) | from | |||||||||||||
Derivative | |||||||||||||||
Transactions | |||||||||||||||
Contract Type | |||||||||||||||
Caps | $ | 4 | $ | (7,125 | ) | $ | (7,121 | ) | |||||||
Futures | (16,064,974 | ) | (74,945,667 | ) | (91,010,641 | ) | |||||||||
Swaps | 1,780,054 | (5,160,585 | ) | (3,380,531 | ) | ||||||||||
Credit Derivatives | (86,309 | ) | (313,153 | ) | (399,462 | ) | |||||||||
Total | $ | (14,371,225 | ) | $ | (80,426,530 | ) | $ | (94,797,755 | ) | ||||||
Year Ended December 31, 2013 | |||||||||||||||
Unrealized | Realized | Net Result | |||||||||||||
Gain/(Loss) | Gain/(Loss) | from | |||||||||||||
Derivative | |||||||||||||||
Transactions | |||||||||||||||
Contract Type | |||||||||||||||
Caps | $ | (21 | ) | $ | — | $ | (21 | ) | |||||||
Futures | 4,419,955 | 19,998,551 | 24,418,506 | ||||||||||||
Swaps | 11,288,233 | (4,834,218 | ) | 6,454,015 | |||||||||||
Credit Derivatives | (1,679,906 | ) | (1,117,362 | ) | (2,797,268 | ) | |||||||||
Total | $ | 14,028,261 | $ | 14,046,971 | $ | 28,075,232 | |||||||||
Year Ended December 31, 2012 | |||||||||||||||
Unrealized | Realized | Net Result | |||||||||||||
Gain/(Loss) | Gain/(Loss) | from | |||||||||||||
Derivative | |||||||||||||||
Transactions | |||||||||||||||
Contract Type | |||||||||||||||
Caps | $ | (1,798 | ) | $ | — | $ | (1,798 | ) | |||||||
Futures | 5,980,796 | (22,967,881 | ) | (16,987,085 | ) | ||||||||||
Swaps | 5,000,099 | (18,616,592 | ) | (13,616,493 | ) | ||||||||||
Credit Derivatives | 1,347,963 | (6,393,576 | ) | (5,045,613 | ) | ||||||||||
Total | $ | 12,327,060 | $ | (47,978,049 | ) | $ | (35,650,989 | ) | |||||||
The Company’s counterparties held $35,823,128 and $21,959,113 of cash margin as collateral for derivatives as of December 31, 2014 and 2013, respectively, which is included in cash collateral held by brokers in the combined consolidated balance sheets. | |||||||||||||||
Credit Risk-Related Contingent Features | |||||||||||||||
The Company has agreements with certain of its derivative counterparties that contain a provision whereby if the Company defaults on certain of its indebtedness, the Company could also be declared in default on its derivatives, resulting in an acceleration of payment under the derivatives. As of December 31, 2014 and 2013, the Company was in compliance with these requirements and not in default on its indebtedness. As of December 31, 2014 and 2013, there was $11,690,412 and $12,656,815 of cash collateral held by the derivative counterparties for these derivatives, respectively, included in cash collateral held by broker in the combined consolidated statements of financial condition. No additional cash would be required to be posted if the acceleration of payment under the derivatives was triggered. |
OFFSETTING_ASSETS_AND_LIABILIT
OFFSETTING ASSETS AND LIABILITIES | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Offsetting [Abstract] | |||||||||||||||||||||||||
OFFSETTING ASSETS AND LIABILITIES | 10. OFFSETTING ASSETS AND LIABILITIES | ||||||||||||||||||||||||
The following tables presents both gross information and net information about derivatives and other instruments eligible for offset in the statement of financial position as of December 31, 2014 and December 31, 2013. The Company’s accounting policy is to record derivative asset and liability positions on a gross basis, therefore, the following table presents the gross derivative asset and liability positions recorded on the balance sheets while also disclosing the eligible amounts of financial instruments and cash collateral to the extent those amounts could offset the gross amount of derivative asset and liability positions. The actual amounts of collateral posted by or received from counterparties may be in excess than the amounts disclosed in the following table as the following only discloses amounts eligible to be offset to the extent of the recorded gross derivative positions. | |||||||||||||||||||||||||
As of December 31, 2014 | |||||||||||||||||||||||||
Offsetting of Financial Assets and Derivative Assets | |||||||||||||||||||||||||
($ in thousands) | |||||||||||||||||||||||||
Description | Gross amounts of | Gross amounts | Net amounts of | Gross amounts not offset in the | Net amount | ||||||||||||||||||||
recognized assets | offset in the | assets presented | balance sheet | ||||||||||||||||||||||
balance sheet | in the balance | ||||||||||||||||||||||||
sheet | Financial | Cash collateral | |||||||||||||||||||||||
instruments | received/(posted)(1) | ||||||||||||||||||||||||
Derivatives | $ | 424 | $ | — | $ | 424 | $ | — | $ | — | $ | 424 | |||||||||||||
Total | $ | 424 | $ | — | $ | 424 | $ | — | $ | — | $ | 424 | |||||||||||||
As of December 31, 2014 | |||||||||||||||||||||||||
Offsetting of Financial Liabilities and Derivative Liabilities | |||||||||||||||||||||||||
($ in thousands) | |||||||||||||||||||||||||
Description | Gross amounts of | Gross amounts | Net amounts of | Gross amounts not offset in the | Net amount | ||||||||||||||||||||
recognized | offset in the | liabilities | balance sheet | ||||||||||||||||||||||
liabilities | balance sheet | presented in the | |||||||||||||||||||||||
balance sheet | Financial | Cash collateral | |||||||||||||||||||||||
instruments | posted/(received)(1) | ||||||||||||||||||||||||
collateral | |||||||||||||||||||||||||
Derivatives | $ | 13,446 | $ | — | $ | 13,446 | $ | — | $ | 13,446 | — | ||||||||||||||
Repurchase agreements | 1,431,666 | — | 1,431,666 | 1,431,666 | — | — | |||||||||||||||||||
Total | $ | 1,445,112 | $ | — | $ | 1,445,112 | $ | 1,431,666 | $ | 13,446 | $ | — | |||||||||||||
(1) Included in cash collateral held by broker on combined consolidated balance sheets. | |||||||||||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||
Offsetting of Financial Assets and Derivative Assets | |||||||||||||||||||||||||
($ in thousands) | |||||||||||||||||||||||||
Description | Gross amounts of | Gross amounts | Net amounts of | Gross amounts not offset in the | Net amount | ||||||||||||||||||||
recognized assets | offset in the | assets presented | balance sheet | ||||||||||||||||||||||
balance sheet | in the balance | ||||||||||||||||||||||||
sheet | Financial | Cash collateral | |||||||||||||||||||||||
instruments | received/(posted)(1) | ||||||||||||||||||||||||
Derivatives | $ | 8,244 | $ | — | $ | 8,244 | $ | — | $ | — | $ | 8,244 | |||||||||||||
Total | $ | 8,244 | $ | — | $ | 8,244 | $ | — | $ | — | $ | 8,244 | |||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||
Offsetting of Financial Liabilities and Derivative Liabilities | |||||||||||||||||||||||||
($ in thousands) | |||||||||||||||||||||||||
Description | Gross amounts of | Gross amounts | Net amounts of | Gross amounts not offset in the | Net amount | ||||||||||||||||||||
recognized | offset in the | liabilities | balance sheet | ||||||||||||||||||||||
liabilities | balance sheet | presented in the | |||||||||||||||||||||||
balance sheet | Financial | Cash collateral | |||||||||||||||||||||||
instruments | posted/(received)(1) | ||||||||||||||||||||||||
collateral | |||||||||||||||||||||||||
Derivatives | $ | 7,031 | $ | — | $ | 7,031 | $ | — | $ | 7,031 | $ | — | |||||||||||||
Repurchase agreements | 609,835 | — | 609,835 | 609,835 | — | — | |||||||||||||||||||
Total | $ | 616,866 | $ | — | $ | 616,866 | $ | 609,835 | $ | 7,031 | $ | — | |||||||||||||
(1) Included in cash collateral held by broker on combined consolidated balance sheets. | |||||||||||||||||||||||||
Master netting agreements that the Company has entered into with its derivative and repurchase agreement counterparties allow for netting of the same transaction, in the same currency, on the same date. Assets, liabilities, and collateral subject to master netting agreements as of December 31, 2014 and 2013 are disclosed in the tables above. The Company does not present its derivative and repurchase agreements net on the combined consolidated financial statements as it has elected gross presentation. |
EQUITY_STRUCTURE_AND_ACCOUNTS
EQUITY STRUCTURE AND ACCOUNTS | 12 Months Ended |
Dec. 31, 2014 | |
Equity [Abstract] | |
EQUITY STRUCTURE AND ACCOUNTS | 11. EQUITY STRUCTURE AND ACCOUNTS |
A description of the IPO and the Reorganization Transactions is included in Note 1. In addition, a description of the distribution policies of and accounting for the predecessor capital structure is also included later in this Note. | |
Subsequent to the IPO Transactions, the Company has two classes of common stock, Class A and Class B, which are described as follows: | |
Class A Common Stock | |
Voting Rights | |
Holders of shares of Class A common stock are entitled to one vote per share on all matters to be voted upon by the shareholders. The holders of Class A common stock do not have cumulative voting rights in the election of directors. | |
Dividend Rights | |
Subject to the rights of the holders of any preferred stock that may be outstanding and any contractual or statutory restrictions, holders of Class A common stock are entitled to receive equally and ratably, share for share, dividends as may be declared by the board of directors out of funds legally available to pay dividends. Dividends upon Class A common stock may be declared by the board of directors at any regular or special meeting and may be paid in cash, in property, or in shares of capital stock. Before payment of any dividend, there may be set aside out of any funds available for dividends, such sums as the board of directors deems proper as reserves to meet contingencies, or for equalizing dividends, or for repairing or maintaining any of the Company’s property, or for any proper purpose, and the board of directors may modify or abolish any such reserve. | |
Liquidation Rights | |
Upon liquidation, dissolution, distribution of assets or other winding up, the holders of Class A common stock are entitled to receive ratably the assets available for distribution to the shareholders after payment of liabilities and the liquidation preference of any outstanding shares of preferred stock. | |
Other Matters | |
The shares of Class A common stock have no preemptive or conversion rights and are not subject to further calls or assessment by the Company. There are no redemption or sinking fund provisions applicable to the Class A common stock. All outstanding shares of Class A common stock are fully paid and non-assessable. | |
Allocation of Income and Loss | |
Income and losses are allocated among the shareholders based upon the number of shares outstanding. | |
Class B Common Stock | |
Voting Rights | |
Holders of shares of Class B common stock are entitled to one vote for each share held of record by such holder and all matters submitted to a vote of shareholders. Holders of shares of our Class A common stock and Class B common stock vote together as a single class on all matters presented to our shareholders for their vote or approval, except as otherwise required by applicable law. | |
No Dividend or Liquidation Rights | |
Holders of Class B common stock do not have any right to receive dividends or to receive a distribution upon a liquidation or winding up of Ladder Capital Corp. | |
Exchange for Class A Common Stock | |
Pursuant to the Third Amended and Restated LLLP Agreement of LCFH, the Continuing LCFH Limited Partners may from time to time, subject to certain conditions, exchange one Series REIT LP Unit, one of either a Series TRS LP Unit or a TRS Share, and one share of the Company’s Class B common stock for one share of the Company’s Class A common stock, subject to equitable adjustments for stock splits, stock dividends and reclassifications. | |
In 2014, 874,374 LP Units were exchanged for 874,374 shares of Class A common stock and 874,374 shares of Class B common stock were canceled. We received no other consideration in connection with these exchanges. | |
As part of the REIT Structuring Transactions described in Note 1, the provisions for exchange for Class A Common Stock were amended to require (for each share of the Class A Common to be received) the exchanging party to surrender (i) one share of the Company’s Class B common stock, (ii) one Series REIT LP Unit and (iii) either one Series TRS LP Unit or one TRS Share. | |
Predecessor Capital Structure | |
The capital structure discussed below is reflective of LCFH’s structure as it existed at February 11, 2014, immediately prior to the Reorganization Transactions described in Note 1. Immediately following the Reorganization Transactions, with the exception of the discussions regarding quarterly tax distributions, the provisions set forth below no longer apply. | |
Cash Distributions to Predecessor Partners | |
Distributions (other than tax distributions which are described below) will be made in the priorities described below at such times and in such amounts as determined by the Company’s board of directors. All capitalized items used in this section but not defined shall have the respective meanings given to such capitalized terms in the Amended and Restated LLLP Agreement. | |
First, to the holders of Series A and Series B participating preferred units pro rata based on the capital account of each such holder’s interests, until the Series A and Series B participating preferred unit holders have each received an amount equivalent to their respective capital accounts; then | |
Second, 20% to the common unit holders, and 80% to the holders of Series A participating preferred units, until the Series A participating preferred unit holders have each received an amount equivalent to $124 per unit; and | |
Thereafter, 20% to common unit holders, and 80% to the holders of Series A and Series B participating preferred units, pro rata based on the units held by each holder. | |
Notwithstanding the foregoing, subject to available liquidity as determined by Company’s board of directors, the Company intends to make quarterly tax distributions equal to a partner’s “Quarterly Estimated Tax Amount,” which shall be computed (as more fully described in the Company’s LLLP Agreement) for each partner as the product of (x) the federal taxable income (or alternative minimum taxable income, as the case may be,) allocated by the Company to such partner in respect of the partnership interests of the Company held by such partner and (y) the highest marginal blended federal, state and local income tax rate applicable to an individual residing in New York, NY, taking into account for federal income tax purposes, the deductibility of state and local taxes. | |
Allocation of Income and Loss | |
Income and losses and comprehensive income are allocated among the partners in a manner to reflect as closely as possible the amount each partner would be distributed under the LLLP Agreement upon liquidation of the Operating Partnership’s assets. | |
Capitalized Offering Costs | |
As described in Note 1, the Company completed an IPO of its Class A Common Stock on February 11, 2014. Costs directly attributable to the Company’s IPO of $20,523,458 were capitalized and charged against the proceeds of the IPO once completed. |
NONCONTROLLING_INTERESTS
NONCONTROLLING INTERESTS | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Noncontrolling Interest [Abstract] | ||||||||||||
NONCONTROLLING INTERESTS | 12. NONCONTROLLING INTERESTS | |||||||||||
Pursuant to ASC 810, Consolidation, on the accounting and reporting for noncontrolling interests and changes in ownership interests of a subsidiary, changes in a parent’s ownership interest (and transactions with noncontrolling interest unitholders in the subsidiary) while the parent retains its controlling interest in its subsidiary should be accounted for as equity transactions. The carrying amount of the noncontrolling interest shall be adjusted to reflect the change in its ownership interest in the subsidiary, with the offset to equity attributable to the parent. Accordingly, as a result of reorganization transactions which caused changes in ownership percentages between the Company’s Class A shareholders and the noncontrolling interests in the Operating Partnership that occurred during the year ended December 31, 2014, the Company has decreased noncontrolling interests in the Operating Partnership and increased additional paid-in capital and accumulated other comprehensive income in the Company’s shareholders’ equity by $5,329,742 as of December 31, 2014. | ||||||||||||
There are two main types of noncontrolling interest reflected in the Company’s combined consolidated financial statements (i) noncontrolling interest in the operating partnership and (ii) noncontrolling interest in consolidated joint ventures. | ||||||||||||
Noncontrolling Interest in the Operating Partnership | ||||||||||||
As more fully described in Note 1, certain of the predecessor equity owners continue to own interests in the operating partnership as modified by the IPO Transactions. These interests were subsequently further modified by the REIT Structuring Transactions (also described in Note 1). These interests along with the Class B shares held by these investors are exchangeable for Class A shares of the Company. The roll-forward of the Operating Partnership’s LP Units follow the Class B common stock of the Company as disclosed in the combined consolidated statements of changes in equity/capital. | ||||||||||||
Distributions to Noncontrolling Interest in the Operating Partnership | ||||||||||||
Notwithstanding the foregoing, subject to available liquidity as determined by Company’s board of directors, LCFH intends to make quarterly distributions to all of its unitholders (including the Company) at least equal to a partner’s “Quarterly Estimated Tax Amount,” which shall be computed (as more fully described in LCFH’s Third Amended and Restated LLLP Agreement) for each partner as the product of (x) the federal taxable income (or alternative minimum taxable income, as the case may be,) allocated by LCFH to such partner in respect of the partnership interests of LCFH held by such partner and (y) the highest marginal blended federal, state and local income tax rate applicable to an individual residing in New York, NY, taking into account for federal income tax purposes, the deductibility of state and local taxes. | ||||||||||||
Allocation of Income and Loss | ||||||||||||
Income and losses and comprehensive income are allocated among the partners in a manner to reflect as closely as possible the amount each partner would be distributed under the Third Amended and Restated LLLP Agreement upon liquidation of the Operating Partnership’s assets. | ||||||||||||
Noncontrolling Interest in Unconsolidated Joint Ventures | ||||||||||||
The Company consolidates six ventures in which there are other noncontrolling investors which own 1.2% - 22.5% of such ventures. These ventures hold investments in five office buildings and a condominium project. The Company makes distributions and allocates income from these ventures to the noncontrolling interests in accordance with the terms of the respective governing agreements. | ||||||||||||
The following table presents net income attributable to the Company’s Class A common stockholders for the year ended December 31, 2014 and net income attributable to predecessor unit holders for the years ended December 31, 2013 and 2012: | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Net income | 97,626,251 | 188,733,086 | 169,454,280 | |||||||||
Net loss attributable to noncontrolling interest in consolidated joint ventures | 368,670 | 1,098,150 | 49,084 | |||||||||
Net loss attributable to predecessor unitholders | 12,628,031 | $ | 189,831,236 | $ | 169,503,364 | |||||||
Net (income) attributable to noncontrolling interest in operating partnership | (66,436,274 | ) | ||||||||||
Net income attributable to Class A common shareholders | $ | 44,186,678 | ||||||||||
EARNINGS_PER_SHARE
EARNINGS PER SHARE | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Earnings Per Share [Abstract] | |||||
EARNINGS PER SHARE | 13. EARNINGS PER SHARE | ||||
The Company’s net income and weighted average shares outstanding for the period February 11, 2014 through December 31, 2014 consists of the following: | |||||
($ in thousands except share amounts) | For the Period | ||||
February 11, 2014 | |||||
through | |||||
December 31, | |||||
2014 | |||||
Basic Net income available for Class A common stockholders | $ | 44,187 | |||
Diluted Net income available for Class A common stockholders | $ | 84,228 | |||
Weighted average shares outstanding | |||||
Basic | 49,296,417 | ||||
Diluted | 97,583,310 | ||||
Net income per share information is not applicable for reporting periods prior to February 11, 2014. The calculation of basic and diluted net income per share amounts for the period February 11, 2014 through December 31, 2014 are described and presented below. | |||||
Basic Net Income per Share | |||||
Numerator-utilizes net income available for Class A common shareholders for the year ended December 31, 2014 and the period February 11, 2014 through December 31, 2014, respectively. | |||||
Denominator-utilizes the weighted average shares of Class A common stock for the year ended December 31, 2014 and the period February 11, 2014 through December 31, 2014, respectively. | |||||
Diluted Net Income per Share | |||||
Numerator-utilizes net income available for Class A common shareholders for the year ended December 31, 2014 and the period February 11, 2014 through December 31, 2014, respectively, for the basic net income per share calculation described above, adding net income amounts attributable to the noncontrolling interest in the Operating Partnership using the as-if converted method for the Class B common shareholders while adjusting for additional corporate income tax expense for the described net income add back. | |||||
Denominator-utilizes the weighted average number of shares of Class A common stock for the period February 11, 2014 through December 31, 2014, respectively, for the basic net income per share calculation described above adding the dilutive effect of shares issuable relating to Operating Partnership exchangeable interests and the incremental shares of unvested Class A restricted stock using the treasury method. | |||||
(In thousands except share amounts) | For the Period | ||||
February 11, 2014 | |||||
through | |||||
December 31, | |||||
2014 | |||||
Basic Net Income Per Share of Class A Common Stock | |||||
Numerator: | |||||
Net income attributable to Class A common shareholders | $ | 44,187 | |||
Denominator: | |||||
Weighted average number of shares of Class A common stock outstanding | 49,296,417 | ||||
Basic net income per share of Class A common stock | $ | 0.9 | |||
Diluted Net Income Per Share of Class A Common Stock | |||||
Numerator: | |||||
Net income attributable to Class A common shareholders | $ | 44,187 | |||
Add (deduct) - dilutive effect of: | |||||
Amounts attributable to operating partnership’s share of Ladder Capital Corp net income | 66,436 | ||||
Additional corporate tax | (26,395 | ) | |||
Diluted net income attributable to Class A common shareholders | $ | 84,228 | |||
Denominator: | |||||
Basic weighted average number of shares of Class A common stock outstanding | 49,296,417 | ||||
Add - dilutive effect of: | |||||
Shares issuable relating to converted Class B common shareholders | 48,145,875 | ||||
Incremental shares of unvested Class A restricted stock | 141,018 | ||||
Diluted weighted average number of shares of Class A common stock outstanding | 97,583,310 | ||||
Diluted net income per share of Class A common stock | $ | 0.86 | |||
The shares of Class B common stock do not share in the earnings of Ladder Capital Corp and are, therefore, not participating securities. Accordingly, basic and diluted net income per share of Class B common stock has not been presented, although the assumed conversion of Class B common stock has been included in the presented diluted net income per share. |
STOCK_BASED_COMPENSATION_PLANS
STOCK BASED COMPENSATION PLANS | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||
STOCK BASED COMPENSATION PLANS | 14. STOCK BASED COMPENSATION PLANS | ||||||||||||||||||||
2008 Incentive Equity Plan | |||||||||||||||||||||
The 2008 Incentive Equity Plan of the Company, as amended in 2012, was adopted by the board of directors on September 22, 2008 (the “2008 Plan”) and provides certain members of management, employees and directors of the Company or any other Ladder Company (as defined in the 2008 Plan) with additional incentives. | |||||||||||||||||||||
On April 20, 2010, 910,491 Class A-2 Common Units were granted to a member of management. The grants issued are subject to a forty-two (42) month vesting period, commencing on April 20, 2010. On June 4, 2012, 1,127,543 Class A-2 Common Units and 31,451.61 Series B Participating Preferred Units were granted to a new member of the management team. The grants issued are subject to a thirty-six (36) month vesting period, commencing on January 1, 2012 and vest monthly. In addition, the new member purchased 24,193.55 Series B Participating Preferred Units as well as received an option to purchase an additional 24,193.55 Series B Participating Preferred Units within one year of grant date at a price of $124 per unit. The fair value of the units at grant date was $130.0 per unit, and the difference is recognized as deferred compensation expense over the vesting period. The option in respect of 14,516.13 Series B Participating Preferred Units was exercised on May 29, 2013 at an exercise price of $124.0 per unit. The remaining options held were terminated on May 29, 2013. On May 20, 2013, 6,570 Series B Participating Preferred Units were granted to a new employee. The grant issued is subject to a thirty-six (36) month vesting period, commencing on February 1, 2013 and vests monthly. On June 3, 2013, 2,531 Series B Participating Preferred Units were granted to a new employee. The grant issued is subject to a thirty-six (36) month vesting period, commencing on February 1, 2013 and vests monthly. The unvested units were subsequently forfeited during the year ended December 31, 2014. In accordance with a provision under the grant agreements, certain Series B Participating Preferred unitholders have elected to return a portion of their Series B Participating Preferred Units at each vesting, to reimburse the Company for payroll taxes paid on behalf of the unitholders. | |||||||||||||||||||||
The Company has estimated the fair value of such units granted based, in part, on the price to book value ratios of comparable companies, which is approved by the board of directors. Other key inputs are based on management’s prior experience, current market conditions and projected conditions of the commercial real estate industry. All units issued under the 2008 Plan are amortized over the units’ vesting periods and charged against income and were converted to LP Units of LCFH in connection with the IPO. Post-IPO incentive-based compensation is governed by the 2014 Omnibus Incentive Plan discussed below. | |||||||||||||||||||||
2014 Omnibus Incentive Plan | |||||||||||||||||||||
In connection with the IPO Transactions, the 2014 Ladder Capital Corp Incentive Equity Plan, (the “2014 Omnibus Incentive Plan”), was adopted by the board of directors on February 11, 2014, and provides certain members of management, employees and directors of the Company or any other Ladder Company (as defined in the 2008 Plan) with additional incentives including grants of stock options, stock appreciation rights, restricted stock, other stock-based awards and other cash-based awards. | |||||||||||||||||||||
2014 Restricted Stock Awards in Connection with the IPO Transactions | |||||||||||||||||||||
In connection with the IPO Transactions, restricted stock awards were granted to members of management and certain employees (the “Grantees”) with an aggregate value of $27,489,109 which represents 1,619,865 shares of restricted Class A common stock. Fifty percent of each restricted stock award granted in connection with the offering is subject to time-based vesting criteria, and the remaining 50% of each restricted stock award is subject to specified performance-based vesting criteria. The time-vesting restricted stock granted to Brian Harris will vest in three equal installments on each of the first three anniversaries of the date of grant, subject to his continued employment on the applicable vesting dates. Twenty-five percent of the time-vesting restricted stock granted to the other Grantees will vest in full on the 18-month anniversary of the date of grant and the remaining 75% will vest in full on the three-year anniversary of the date of grant, subject to continued employment on the applicable vesting date. The performance-vesting restricted stock will vest in three equal installments on December 31 of each of 2014, 2015 and 2016 if the Company achieves a return on equity, based on core earnings divided by the Company’s average book value of equity, equal to or greater than 8% for such year (the “Performance Target”). If the Company misses the Performance Target during either the first or second calendar year but meets the Performance Target for a subsequent year during the three-year performance period and the Company’s return on equity for such subsequent year and any years for which it missed its Performance Target equals or exceeds the compounded return on equity of 8%, based on core earnings divided by the Company’s average book value of equity, the performance-vesting restricted stock which failed to vest because the Company previously missed its Performance Target will vest on the last day of such subsequent year. If the term “core earnings” is no longer used in the Company’s SEC filings and approved by the compensation committee, then the Performance Target will be calculated using such other pre-tax performance measurement defined in the Company’s SEC filings, as determined by the compensation committee. | |||||||||||||||||||||
The Company has elected to recognize the compensation expense related to the time-based vesting criteria for the entire award on a straight-line basis over the requisite service period. We feel that this aligns the compensation expense with the obligation of the Company. As such, the compensation expense related to the upfront grants to directors, officers and certain employees in connection with the IPO shall be recognized as follows: | |||||||||||||||||||||
1 | Compensation expense for restricted stock subject to time-based vesting criteria granted to Brian Harris will be expensed 1/3 each year, for three years, on an annual basis following such grant | ||||||||||||||||||||
2 | Compensation expense for restricted stock subject to time-based vesting criteria granted to directors will be expensed 1/3 each year, for three years on an annual basis following such grant | ||||||||||||||||||||
3 | Compensation expense for restricted stock subject to time-based vesting criteria granted to officers other than Mr. Harris, and to certain employees will be expensed 1/3 each year, for three years on an annual basis following such grant. | ||||||||||||||||||||
Accruals of compensation cost for an award with a performance condition shall be based on the probable outcome of that performance condition. Therefore, compensation cost shall be accrued if it is probable that the performance condition will be achieved and shall not be accrued if it is not probable that the performance condition will be achieved. | |||||||||||||||||||||
Upon termination of a Grantee’s employment of service due to death or disability, and, in the case of Mr. Harris, by the Company without cause or by Mr. Harris for good reason (each, as defined in the 2014 Omnibus Incentive Plan), the Grantee’s time-vesting restricted stock will accelerate and vest in full, and the Grantee’s unvested performance-vesting restricted stock will remain outstanding for the performance period and will vest to the extent the Company meets the Performance Target, including via the catch up provision described above. Upon a change in control (as defined in the 2014 Omnibus Incentive Plan) all restricted stock will become fully vested, if (1) the Grantee continues to be employed through the closing of the change in control or (2) after the signing of definitive documentation related to the change in control but prior to its closing, Grantee’s employment is terminated without cause or due to death or disability or Grantee resigns for good reason. The compensation committee retains the right, in its sole discretion, to provide for the accelerated vesting (in whole or in part) of the restricted stock awards granted in connection with the IPO Transactions. | |||||||||||||||||||||
In connection with the IPO Transactions, Alan Fishman and each of Joel C. Peterson and Douglas Durst, who were appointed to the board of directors in connection with such transactions, received an initial restricted stock award with a grant date fair value of approximately $1 million, $75,000 and $75,000, respectively, which represents 67,648 shares of restricted Class A common stock. The grants will vest in three equal installments on each of the first three anniversaries of the date of such grants, and each will receive an annual restricted stock award with a grant date fair value of $50,000, which will vest in full on the one-year anniversary of the date of grant, with both such awards subject to continued service on the board of directors. Messrs. Peterson and Durst will also receive a $75,000 annual cash payment for their service on the board of directors. Additionally, certain directors may receive $15,000 annually for service as a chairperson of the audit committee or compensation committee and $10,000 for service as a chairperson of the nominating and corporate governance committee, with all or a portion of such fee payable to an applicable director in cash or restricted stock (with a grant date fair value equal to such amount payable) at the election of such director. | |||||||||||||||||||||
The Company recognized equity-based compensation expense of $14,450,764, $2,881,447 and $2,407,773 for the year ended December 31, 2014, 2013 and 2012, respectively. | |||||||||||||||||||||
A summary of the grants is presented below: | |||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Number of | Weighted | Number of | Weighted | Number of | Weighted | ||||||||||||||||
Units | Average | Units | Average | Units | Average | ||||||||||||||||
Fair Value | Fair Value | Fair Value | |||||||||||||||||||
Grants - Class A Common Units | — | — | — | $ | — | 1,127,543 | $ | 1,360,106 | |||||||||||||
Grants - Series B Participating Preferred Units | — | — | 7,613 | $ | 1,157,176 | 31,452 | $ | 4,088,710 | |||||||||||||
Grants - Class A Common Stock (restricted) | 1,687,513 | 28,637,096 | — | — | — | — | |||||||||||||||
Amortization to compensation expense | |||||||||||||||||||||
Predecessor compensation expense | (290,171 | ) | (2,881,447 | ) | (2,407,773 | ) | |||||||||||||||
LP Units | (2,052,222 | ) | — | — | |||||||||||||||||
Class A Common Stock (restricted) | (12,108,371 | ) | — | — | |||||||||||||||||
Total amortization to compensation expense | $ | (14,450,764 | ) | $ | (2,881,447 | ) | $ | (2,407,773 | ) | ||||||||||||
The table below presents the number of unvested shares at December 31, 2014 and changes during 2014 of the (i) Class A Common stock of Ladder Capital Corp granted under the 2014 Omnibus Incentive Plan (ii) Class A-2 Common Units and (iii) Series B Participating Preferred Units of LCFH granted under the 2008 Plan, which were subsequently converted to LP Units of LCFH in connection with the IPO. | |||||||||||||||||||||
Class A Common | Class A Common | Series B | LP Units | ||||||||||||||||||
Shares | Units | Participating | |||||||||||||||||||
Preferred Units | |||||||||||||||||||||
Outstanding at January 1, 2014 | — | 365,407 | 14,276 | — | |||||||||||||||||
Granted | 1,687,513 | — | — | — | |||||||||||||||||
Vested | — | (32,365 | ) | (1,158 | ) | (3,116,574 | ) | ||||||||||||||
Converted (1) | — | (333,042 | ) | (13,118 | ) | 3,186,066 | |||||||||||||||
Outstanding at December 31, 2014 | 1,687,513 | — | — | 69,492 | |||||||||||||||||
-1 | Converted to LP Units of LCFH on February 11, 2014 in connection with IPO and converted to an equal number of Series REIT LP Units and Series TRS LP Units on December 31, 2014. LCFH LP Unitholders also received an equal number of Class B Common shares of the Company in connection with the conversion. Refer to Note 1, Organization and Operations for further discussion of IPO and the Reorganization Transactions. | ||||||||||||||||||||
At December 31, 2014, there was $15,585,296 of total unrecognized compensation cost related to certain share-based compensation awards that is expected to be recognized over a period of up to 26.0 months, with a weighted-average remaining vesting period of 25.3 months. | |||||||||||||||||||||
Phantom Equity Investment Plan | |||||||||||||||||||||
LCFH entered into a Phantom Equity Investment Plan effective as of June 30, 2011 (the “Plan”). The Plan is an annual deferred compensation plan pursuant to which certain mandatory contributions are made to the Plan depending upon the participant’s specific level of compensation and to which participants may also make elective contributions. Generally, if a participant’s total compensation is in excess of a certain threshold, a portion of a participant’s performance-based annual bonus is required to be deferred into the Plan. Otherwise, amounts may be deferred into the Plan at the election of the participant, so long as such elections are timely made in accordance with the terms and procedures of the Plan. | |||||||||||||||||||||
In the event that a participant elects to (or is required to) defer a portion of their compensation pursuant to the Plan, such amount is not paid to the participant and is instead credited to such participant’s notional account. Prior to the IPO, such amounts would have been invested, on a phantom basis, in the Series B Participating Preferred Units of LCFH until such amounts would have eventually been paid to the participant pursuant to the Plan. Following the IPO, as described below, such amounts are invested on a phantom basis in Class A common stock of Ladder Capital Corp. Mandatory contributions are subject to one-third vesting over a three year period on a straight-line basis following the applicable Plan Year in which the related compensation was earned. Elective contributions are immediately vested upon contribution. Unvested amounts are generally forfeited upon the participant’s resignation or termination for cause. The phantom units are liability-based awards and are, therefore, not participating securities. | |||||||||||||||||||||
The date that the amounts deferred into the Plan are paid to a participant depends upon whether such deferral was a mandatory deferral or an elective deferral. Elective deferrals are paid upon the earlier of (1) a change in control (as defined in the Plan), (2) the end of the participant’s employment, or (3) December 31, 2017. The vested amounts of the mandatory contributions are paid upon the earlier of (1) a change in control and (2) the earlier of (x) December 31, 2017 or (y) the date of payment of the annual bonus payments following December 31 of the third calendar year following the applicable plan year to which the underlying deferred annual bonus relates. Payment will be in cash in an amount equal to the then fair market value of such units. The phantom units do not share in the earnings of the Company and are therefore not participating securities. | |||||||||||||||||||||
In February 2014, Company employees contributed $6,427,127 to the Plan. Compensation expense is liability-based and 100% expensed upon contribution. The employees received phantom units of Series B Participating Preferred Units of LCFH at the fair market value of the units. In connection with the IPO Transactions, the notional interest in LCFH’s Series B Participating Preferred Units converted into a notional interest in Class A common stock of Ladder Capital Corp, based on the $17.00 issuance price of its Class A common stock. As of December 31, 2014, there have been $12,805,535 total contributions (net of forfeitures and payouts related to employee terminations) made to the Plan resulting in 653,010 phantom units outstanding, of which 197,583 are unvested. | |||||||||||||||||||||
On July 3, 2014 the board of directors froze the Plan, effective as of such date, so that there will be no future participants in the Plan, nor additional amounts contributed to any accounts outstanding under the Plan. Amounts previously outstanding under the Plan will be paid in accordance with their original payment terms, including limiting payment to the dates and events specified above. In connection with freezing the Plan, the board of directors also updated the definition of fair market value for purposes of measuring the value of its Class A Common Stock, to provide that, generally, such value would be the closing price of such stock on the principal national securities exchange on which it is then traded. | |||||||||||||||||||||
Ladder Capital Corp Deferred Compensation Plan | |||||||||||||||||||||
On July 3, 2014, the Company adopted a new, nonqualified deferred compensation plan (the “2014 Deferred Compensation Plan”). Pursuant to the 2014 Deferred Compensation Plan, participants may elect, or in some cases may be required, to defer all or a portion of their annual cash performance-based bonuses into the 2014 Deferred Compensation Plan. Generally, if a participant’s total compensation is in excess of a certain threshold, a portion of a participant’s performance-based annual bonus is required to be deferred into the 2014 Deferred Compensation Plan. Otherwise, a portion of the participant’s annual bonus may be deferred into the 2014 Deferred Compensation Plan at the election of the participant, so long as such elections are timely made in accordance with the terms and procedures of the 2014 Deferred Compensation Plan. | |||||||||||||||||||||
In the event that a participant elects to (or is required to) defer a portion of their compensation pursuant to the 2014 Deferred Compensation Plan, such amount is not paid to the participant and is instead credited to such participant’s notional account under the 2014 Deferred Compensation Plan. Such amounts are then invested on a phantom basis in Class A common stock of the Company. Elective contributions are immediately vested upon contribution. Mandatory contributions are subject to one-third vesting over a three-year period on a straight-line basis following the applicable year in which the related compensation was earned. Unvested amounts are generally forfeited upon the participant’s resignation or termination, however, if a participant’s employment with the Company is terminated by the Company other than for Cause and such termination is within six (6) months following a Change in Control (as each such term is defined in the 2014 Deferred Compensation Plan), then the participant will fully vest in their unvested account balances. The phantom units are liability-based awards and are, therefore, not participating securities. | |||||||||||||||||||||
Furthermore, the unvested account balances will fully vest in the event of the participant’s death, disability, or in the event of certain hostile takeovers of the board of directors of the Company. In the event that a participant’s employment is terminated by the Company other than for Cause, the participant will vest in the portion of the participant’s account that would have vested had the participant remained employed through the end of the year in which such termination occurs, subject to the participant timely executing a general release of claims in favor of the Company, and all other account balances will be forfeited. Vested shares are forfeited only in the event of a participant’s termination for cause. | |||||||||||||||||||||
Amounts deferred into the 2014 Deferred Compensation Plan are paid upon the earlier to occur of (1) a change in control (as defined in the Plan), (2) within sixty (60) days following the the end of the participant’s employment with the Company, or (3) the date of payment of the annual bonus payments following December 31 of the third calendar year following the applicable year to which the underlying deferred annual compensation relates. Payment is made in cash. The amount of the final cash payment may be more or less than the amount initially deferred into the 2014 Deferred Compensation Plan, depending upon the change in the value of the Class A common stock of the Company during such period. | |||||||||||||||||||||
Bonus Payments | |||||||||||||||||||||
On February 3, 2015, the compensation committee of the board of directors of Ladder Capital Corp approved 2014 bonus payments to employees, including officers, totaling $62,311,750, which included $14,410,500 of equity based compensation. The bonuses were paid to employees in full on February 13, 2015. During the year ended December 31, 2014, 2013 and 2012 the Company accrued and recorded compensation expense of $47,807,991, $44,125,314 and $35,627,157, respectively, related to bonuses. |
INCOME_TAXES
INCOME TAXES | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Income Tax Disclosure [Abstract] | |||||
INCOME TAXES | 15. INCOME TAXES | ||||
Prior to February 11, 2014, the Company had not been subject to U.S. federal income taxes as the predecessor entity is a Limited Liability Limited Partnership (“LLLP”), but had been subject to the New York City Unincorporated Business Tax(“NYC UBT”). As a result of the IPO, a portion of the Company’s income is subject to U.S. federal, state and local corporate income taxes and taxed at the prevailing corporate tax rates in addition to being subject to NYC UBT. | |||||
Components of the provision for income taxes consist of the following: | |||||
Year Ended December 31, 2014 | |||||
Current expense | |||||
Federal | $ | 23,608,814 | |||
State and local | 10,170,483 | ||||
Total current expense | 33,779,297 | ||||
Deferred expense/(benefit) | |||||
Federal | (4,356,908 | ) | |||
State and local | (2,817,613 | ) | |||
Total deferred expense/(benefit) | (7,174,521 | ) | |||
Provision for income tax expense | $ | 26,604,776 | |||
Corporate taxes payable as of December 31, 2014 were $778,146. There were no corporate taxes payable as of December 31, 2013. NYC UBT taxes payable at December 31, 2014 and 2013 were $145,548 and $482,324, respectively. Prepaid corporate taxes as of December 31, 2014 were $12,497,070. There were no prepaid corporate taxes as of December 31, 2013. | |||||
A reconciliation between the U.S. federal statutory income tax rate and the effective tax rate for the year ended December 31, 2014 is as follows: | |||||
Year Ended December 31, 2014 | |||||
US statutory tax rate | 35 | % | |||
Benefit of partnership income not subject to taxation | (15.45 | )% | |||
Increase due to state and local taxes | 3.78 | % | |||
Other | (1.92 | )% | |||
Effective income tax rate | 21.41 | % | |||
As of December 31, 2014, the Company’s net deferred tax assets were $8,188,553 and included in other assets in the Company’s combined consolidated balance sheets. The Company believes it is more likely than not that the net deferred tax assets will be realized in the future. Realization of the net deferred tax assets is dependent upon our generation of sufficient taxable income in future years in appropriate tax jurisdictions to obtain benefit from the reversal of temporary differences. The amount of net deferred tax assets considered realizable is subject to adjustment in future periods if estimates of future taxable income change. The components of the Company’s deferred tax assets and liabilities are as follows: | |||||
December 31, 2014 | |||||
Deferred Tax Assets | |||||
Fixed assets | $ | 232,318 | |||
Equity based compensation | 694,356 | ||||
Unrealized gains and losses | 616,220 | ||||
Basis difference in Operating Partnership investment | 5,979,516 | ||||
Section 197 intangibles | 778,149 | ||||
Total Deferred Tax Assets | $ | 8,300,559 | |||
Deferred Tax Liabilities | |||||
Other | $ | 112,006 | |||
Total Deferred Tax Liabilities | $ | 112,006 | |||
Net Deferred Tax Assets/(Liabilities) | $ | 8,188,553 | |||
Our tax returns are subject to audit by taxing authorities. Generally, as of December 31, 2014 the tax years 2010, 2011, 2012 and 2013 remain open to examination by the major taxing jurisdictions in which the Company is subject to taxes. U.S. federal and state taxing authorities are currently examining income tax returns of various subsidiaries of the Company for tax years 2010 through 2012. These tax examinations often take a long time to complete and/or settle and there can be no assurances as to the possible outcomes. However, the Company believes that the examinations will result in no material changes to the filed income tax returns. | |||||
Under U.S. GAAP, a tax benefit related to an income tax position may be recognized when it is more likely than not that the position will be sustained upon examination by the tax authorities based on the technical merits of the position. The Company determined that no liability for unrecognized tax benefits for uncertain income tax positions was required to be recorded as of December 31, 2014. In addition, the Company does not believe that it has any tax positions for which it is reasonably possible that it will be required to record a significant liability for unrecognized tax benefits within the next twelve months. | |||||
Tax Receivable Agreement | |||||
Upon consummation of the IPO, the Company entered into a Tax Receivable Agreement with the Continuing LCFH Limited Partners. Under the Tax Receivable Agreement the Company generally is required to pay to those Continuing LCFH Limited Partners that exchange their interests in LCFH and Class B shares of the Company for Class A shares of the Company, 85% of the applicable cash savings, if any, in U.S. federal, state and local income tax that the Company realizes (or is deemed to realize in certain circumstances) as a result of (i) the increase in tax basis in its proportionate share of LCFH’s assets that is attributable to the Company as a result of the exchanges and (ii) payments under the Tax Receivable Agreement, including any tax benefits related to imputed interest deemed to be paid by the Company as a result of such agreement. The Company expects to make future payments under the Tax Receivable Agreement when the tax benefits are realized. We expect to benefit from the remaining 15% of cash savings in income tax that we realize. For purposes of the Tax Receivable Agreement, cash savings in income tax will be computed by comparing our actual income tax liability to the amount of such taxes that we would have been required to pay had there been no increase to the tax basis of the assets of LCFH as a result of the exchanges and had we not entered into the Tax Receivable Agreement. | |||||
Payments to a Continuing LCFH Limited Partner under the Tax Receivable Agreement are triggered by each exchange and are payable annually commencing following the Company’s filing of its income tax return for the year of such exchange. The timing of the payments may be subject to certain contingencies, including the Company having sufficient taxable income to utilize all of the tax benefits defined in the Tax Receivable Agreement. | |||||
As of December 31, 2014, pursuant to Tax Receivable Agreement, the Company recorded a liability of $861,929, included in amount payable pursuant to tax receivable agreement in the combined consolidated balance sheets for Continuing LCFH Limited Partners. The amount and timing of any payments may vary based on a number of factors, including the absence of any material change in the relevant tax law, the Company continuing to earn sufficient taxable income to realize all tax benefits, and assuming no additional exchanges that are subject to the Tax Receivable Agreement. Depending upon the outcome of these factors, the Company may be obligated to make substantial payments pursuant to the Tax Receivable Agreement. The actual payment amounts may differ from these estimated amounts, as the liability will reflect changes in prevailing tax rates, the actual benefit the Company realizes on its annual income tax returns, and any additional exchanges. | |||||
The first payment projected to be made under the Tax Receivable Agreement is in December 2015. To determine the current amount of the payments due, the Company estimates the amount of the Tax Receivable Agreement payments that will be made within twelve months of the balance sheet date. | |||||
As described in Note 1 above, the Tax Receivable Agreement was amended and restated in connection with our REIT Election, effective as of December 31, 2014 in order to preserve a portion of the potential tax benefits currently existing under the Tax Receivable Agreement that would otherwise be reduced in connection with our REIT Election. The purpose of the TRA Amendment was to preserve the benefits of the Tax Receivable Agreement to the extent possible in a REIT, although, as a result, the amount of payments made to the TRA Members under the TRA Amendment is expected to be less than would be made under the prior TRA. The TRA Amendment continues to share such benefits in the same proportions and otherwise has substantially the same terms and provisions as the prior Tax Receivable Agreement. |
RELATED_PARTY_TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2014 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | 16. RELATED PARTY TRANSACTIONS |
The Company entered into a loan referral agreement with Meridian, which is an affiliate of a member of the Company’s board of directors and an investor in the Company. The agreement provided for the payment of referral fees for loans originated pursuant to a formula based on the Company’s net profit on a referred loan, as defined in the agreement, payable annually in arrears. While the arrangement gave rise to a potential conflict of interest, full disclosure was given to the borrower who, in each case, waived the conflict in writing. This agreement was cancellable by the Company based on the occurrence of certain events, or by Meridian for nonpayment of amounts due under the agreement. The Company terminated the loan referral agreement on April 2, 2014, as a result of the IPO on February 11, 2014. | |
The Company incurred $360,332, $425,000 and $1,683,594 in fees for the years ended December 31, 2014, 2013 and 2012, respectively, for loans originated in accordance with this agreement. These fees are reflected in fee expense in the accompanying combined consolidated statements of income. As of December 31, 2014 and 2013, $631,603, $425,000, respectively, was payable to Meridian pursuant to this agreement and included in accrued expenses in the combined consolidated statements of financial condition. |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Commitments and Contingencies Disclosure [Abstract] | |||||
COMMITMENTS AND CONTINGENCIES | 17. COMMITMENTS AND CONTINGENCIES | ||||
Leases | |||||
The Company entered into an operating lease for its previous primary office space, which commenced on January 5, 2009 and expires on May 30, 2015. There is an option to renew the lease for an additional five years at an increased monthly rental. Subsequent to entering into this leasing arrangement, the office space has been subleased to a third party. Income received on the subleased office space is recorded in other income on the combined consolidated statements of income. In 2011, the Company entered into a new lease for its primary office space which commenced on October 1, 2011 and expires on January 31, 2022 with no extension option. In 2012, the Company entered into one new lease for secondary office space. The lease commenced on May 15, 2012 and expires on May 14, 2015 with no extension option. This lease was amended on October 2, 2014, extending the expiration date from May 14, 2015 to May 14, 2018. The Company recorded $1,837,908, $1,738,083 and $1,738,083 of rental expense for the years ended December 31, 2014, 2013 and 2012, respectively, which is included in operating expenses in the combined consolidated statements of income. | |||||
The following is a schedule of future minimum rental payments required under the above operating leases: | |||||
Year ended December 31, | Amount | ||||
2015 | $ | 1,381,992 | |||
2016 | 1,125,069 | ||||
2017 | 1,180,400 | ||||
2018 | 1,180,400 | ||||
2019 | 1,180,400 | ||||
Thereafter | 2,459,167 | ||||
Total | $ | 8,507,428 | |||
GN Construction Loan Securities | |||||
The Company committed to purchase GN construction loan securities over a period of nine to fifteen months. As of December 31, 2014, the Company’s commitment to purchase these securities at fixed prices ranging from $102.0 to $104.4 was $60,048,030, of which $49,438,444 was funded, with $10,609,587 remaining to be funded. As of December 31, 2013, the Company’s commitment to purchase these securities at fixed prices ranging from 102.0 to 107.3 was $150,271,380, of which $112,780,499 was funded, with $37,490,881 remaining to be funded. The fair value of those commitments at December 31, 2014 and 2013 was $63,614 and ($176,736), respectively, as determined by market activity and third-party market quotes and as adjusted for estimated liquidity discounts. The fair value of these commitments is included in GN construction securities on the combined consolidated balance sheets. | |||||
Unfunded Loan Commitments | |||||
As of December 31, 2014, the Company’s off-balance sheet arrangements consisted of $158,135,204 of unfunded commitments on mortgage loan receivables held for investment to provide additional first mortgage loan financing, at rates to be determined at the time of funding. As of December 31, 2013, the Company’s off-balance sheet arrangements consisted of $71,514,519 of unfunded commitments of mortgage loan receivables held for investment, at rates to be determined at the time of funding, which was comprised of $65,314,519 to provide additional first mortgage loan financing and $6,200,000 to provide additional mezzanine loan financing. Such commitments are subject to our borrowers’ satisfaction of certain financial and nonfinancial covenants and involve, to varying degrees, elements of credit risk in excess of the amount recognized in. These commitments are not reflected on the combined consolidated balance sheets. |
SEGMENT_REPORTING
SEGMENT REPORTING | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||
SEGMENT REPORTING | 18. SEGMENT REPORTING | |||||||||||||||||||
The Company has determined that it has three reportable segments based on how management reviews and manages its business. These reportable segments include loans, securities, and real estate. The loans segment includes mortgage loan receivables held for investment (balance sheet loans) and mortgage loan receivables held for sale (conduit loans). The securities segment is composed of all of the Company’s activities related to commercial real estate securities, which include investments in CMBS and U.S. Agency Securities. The real estate segment includes selected net leased retail properties, office buildings and condominiums. Corporate/other includes the Company’s investments in joint ventures, other asset management activities and operating expenses. | ||||||||||||||||||||
The Company evaluates performance based on the following financial measures for each segment ($ in thousands): | ||||||||||||||||||||
Loans | Securities | Real Estate(1) | Corporate/Other(2) | Company Total | ||||||||||||||||
Year Ended December 31, 2014 | ||||||||||||||||||||
Interest income | $ | 113,943 | $ | 73,331 | $ | — | $ | 51 | $ | 187,325 | ||||||||||
Interest expense | (13,205 | ) | (6,588 | ) | (15,984 | ) | (41,797 | ) | (77,574 | ) | ||||||||||
Net interest income (expense) | 100,738 | 66,743 | (15,984 | ) | (41,746 | ) | 109,751 | |||||||||||||
Provision for loan losses | (600 | ) | — | — | — | (600 | ) | |||||||||||||
Net interest income (expense) after provision for loan losses | 100,138 | 66,743 | (15,984 | ) | (41,746 | ) | 109,151 | |||||||||||||
Operating lease income | — | — | 56,649 | — | 56,649 | |||||||||||||||
Tenant recoveries | — | — | 9,183 | — | 9,183 | |||||||||||||||
Sale of loans, net | 145,275 | — | — | — | 145,275 | |||||||||||||||
Gain on securities | — | 26,977 | — | — | 26,977 | |||||||||||||||
Unrealized gain (loss) on Agency interest-only securities | — | 2,144 | — | — | 2,144 | |||||||||||||||
Sale of real estate, net | 1,525 | — | 28,235 | — | 29,760 | |||||||||||||||
Fee income | 3,854 | — | 5,374 | 2,476 | 11,704 | |||||||||||||||
Net result from derivative transactions | (34,599 | ) | (60,199 | ) | — | — | (94,798 | ) | ||||||||||||
Earnings from investment in unconsolidated joint ventures | — | — | 900 | 1,090 | 1,990 | |||||||||||||||
Gain on assignment of mortgage loan financing | — | — | 431 | — | 431 | |||||||||||||||
Loss on extinguishment of debt | — | — | — | (150 | ) | (150 | ) | |||||||||||||
Total other income | 116,055 | (31,078 | ) | 100,772 | 3,416 | 189,165 | ||||||||||||||
Salaries and employee benefits | (22,400 | ) | — | — | (59,744 | ) | (82,144 | ) | ||||||||||||
Operating expenses | 235 | — | — | (25,633 | ) | (25,398 | ) | |||||||||||||
Real estate operating expenses | — | — | (32,670 | ) | — | (32,670 | ) | |||||||||||||
Real estate acquisition costs | — | — | (2,399 | ) | (4 | ) | (2,403 | ) | ||||||||||||
Fee expense | (2,172 | ) | (65 | ) | (83 | ) | (703 | ) | (3,023 | ) | ||||||||||
Depreciation and amortization | — | — | (28,271 | ) | (176 | ) | (28,447 | ) | ||||||||||||
Total costs and expenses | (24,337 | ) | (65 | ) | (63,423 | ) | (86,260 | ) | (174,085 | ) | ||||||||||
Tax expense | — | — | — | (26,605 | ) | (26,605 | ) | |||||||||||||
Segment profit (loss) | $ | 191,856 | $ | 35,600 | $ | 21,365 | $ | (151,195 | ) | $ | 97,626 | |||||||||
Total assets as of December 31, 2014 | $ | 1,939,008 | $ | 2,815,566 | $ | 771,129 | $ | 297,958 | $ | 5,823,661 | ||||||||||
Loans | Securities | Real Estate(1) | Corporate/Other(2) | Company Total | ||||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||
Interest income | $ | 63,894 | $ | 57,636 | $ | — | $ | 48 | $ | 121,578 | ||||||||||
Interest expense | (4,592 | ) | (3,289 | ) | (7,673 | ) | (33,191 | ) | (48,745 | ) | ||||||||||
Net interest income (expense) | 59,302 | 54,347 | (7,673 | ) | (33,143 | ) | 72,833 | |||||||||||||
Provision for loan losses | (600 | ) | — | — | — | (600 | ) | |||||||||||||
Net interest income (expense) after provision for loan losses | 58,702 | 54,347 | (7,673 | ) | (33,143 | ) | 72,233 | |||||||||||||
Operating lease income | — | — | 37,394 | — | 37,394 | |||||||||||||||
Tenant recoveries | — | — | 3,271 | — | 3,271 | |||||||||||||||
Sale of loans, net | 146,708 | — | — | — | 146,708 | |||||||||||||||
Gain on securities | — | 4,231 | — | — | 4,231 | |||||||||||||||
Unrealized gain (loss) on Agency interest-only securities | — | (2,665 | ) | — | — | (2,665 | ) | |||||||||||||
Sale of real estate, net | — | — | 13,565 | — | 13,565 | |||||||||||||||
Fee income | 2,963 | 195 | 312 | 4,452 | 7,922 | |||||||||||||||
Net result from derivative transactions | 15,836 | 12,239 | — | — | 28,075 | |||||||||||||||
Earnings from investment in unconsolidated joint ventures | — | — | — | 3,203 | 3,203 | |||||||||||||||
Total other income | 165,507 | 14,000 | 54,542 | 7,655 | 241,704 | |||||||||||||||
Salaries and employee benefits | (26,250 | ) | — | — | (34,788 | ) | (61,038 | ) | ||||||||||||
Operating expenses | 201 | — | (7 | ) | (15,131 | ) | (14,937 | ) | ||||||||||||
Real estate operating expenses | — | — | (17,404 | ) | — | (17,404 | ) | |||||||||||||
Real estate acquisition costs | — | — | (3,626 | ) | — | (3,626 | ) | |||||||||||||
Fee expense | (1,981 | ) | (375 | ) | (33 | ) | (566 | ) | (2,955 | ) | ||||||||||
Depreciation and amortization | — | — | (20,967 | ) | (547 | ) | (21,514 | ) | ||||||||||||
Total costs and expenses | (28,030 | ) | (375 | ) | (42,037 | ) | (51,032 | ) | (121,474 | ) | ||||||||||
Tax expense | — | — | — | (3,730 | ) | (3,730 | ) | |||||||||||||
Segment profit (loss) | $ | 196,179 | $ | 67,972 | $ | 4,832 | $ | (80,250 | ) | $ | 188,733 | |||||||||
Total assets as of December 31, 2013 | $ | 979,568 | $ | 1,657,246 | $ | 626,362 | $ | 225,887 | $ | 3,489,063 | ||||||||||
Year Ended December 31, 2012 | ||||||||||||||||||||
Interest income | $ | 56,835 | $ | 80,613 | $ | — | $ | (1,250 | ) | $ | 136,198 | |||||||||
Interest expense | (9,212 | ) | (15,807 | ) | (3,595 | ) | (7,826 | ) | (36,440 | ) | ||||||||||
Net interest income (expense) | 47,623 | 64,806 | (3,595 | ) | (9,076 | ) | 99,758 | |||||||||||||
Provision for loan losses | (449 | ) | — | — | — | (449 | ) | |||||||||||||
Net interest income (expense) after provision for loan losses | 47,174 | 64,806 | (3,595 | ) | (9,076 | ) | 99,309 | |||||||||||||
Operating lease income | — | — | 8,331 | — | 8,331 | |||||||||||||||
Sale of loans, net | 151,661 | — | — | — | 151,661 | |||||||||||||||
Gain on securities | — | 19,014 | — | — | 19,014 | |||||||||||||||
Unrealized gain (loss) on Agency interest-only securities | — | (5,681 | ) | — | — | (5,681 | ) | |||||||||||||
Sale of real estate, net | — | — | 1,275 | — | 1,275 | |||||||||||||||
Loans | Securities | Real Estate(1) | Corporate/Other(2) | Company Total | ||||||||||||||||
Fee income | 6,886 | 251 | 823 | 828 | 8,788 | |||||||||||||||
Net result from derivative transactions | (25,236 | ) | (10,415 | ) | — | — | (35,651 | ) | ||||||||||||
Earnings from investment in unconsolidated joint ventures | — | — | — | 1,256 | 1,256 | |||||||||||||||
Total other income | 133,311 | 3,169 | 10,429 | 2,084 | 148,993 | |||||||||||||||
Salaries and employee benefits | (21,500 | ) | — | — | (29,590 | ) | (51,090 | ) | ||||||||||||
Operating expenses | — | — | (672 | ) | (8,900 | ) | (9,572 | ) | ||||||||||||
Real estate acquisition costs | — | — | (5,797 | ) | — | (5,797 | ) | |||||||||||||
Fee expense | (5,635 | ) | (107 | ) | (128 | ) | (294 | ) | (6,164 | ) | ||||||||||
Depreciation and amortization | — | — | (3,093 | ) | (548 | ) | (3,641 | ) | ||||||||||||
Total costs and expenses | (27,135 | ) | (107 | ) | (9,690 | ) | (39,332 | ) | (76,264 | ) | ||||||||||
Tax expense | — | — | — | (2,584 | ) | (2,584 | ) | |||||||||||||
Segment profit (loss) | $ | 153,350 | $ | 67,868 | $ | (2,856 | ) | $ | (48,908 | ) | $ | 169,454 | ||||||||
-1 | Includes the Company’s investment in unconsolidated joint ventures that hold real estate of $2.1 million and $2.1 million as of December 31, 2014 and 2013, respectively. | |||||||||||||||||||
-2 | Corporate/Other represents all corporate level and unallocated items including any intercompany eliminations necessary to reconcile to combined consolidated Company totals. This caption also includes the Company’s investment in unconsolidated joint ventures and strategic investments that are not related to the other reportable segments above, including the Company’s investment in unconsolidated joint ventures of $3.9 million and $7.1 million as of December 31, 2014 and 2013, respectively, the Company’s investment in FHLB stock of $72.3 million and $49.5 million as of December 31, 2014 and 2013, respectively and the Company’s DTA of $8.3 million as of December 31, 2014 and none as of December 31, 2013. |
SELECTED_QUARTERLY_DATA_UNAUDI
SELECTED QUARTERLY DATA (UNAUDITED) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||
SELECTED QUARTERLY DATA (UNAUDITED) | 19. QUARTERLY FINANCIAL DATA (UNAUDITED) | ||||||||||||||||
The following summarizes the combined consolidated quarterly financial information for the Company ($ in thousands except per share amounts): | |||||||||||||||||
Q4 2014 | Q3 2014 | Q2 2014 | Q1 2014 | ||||||||||||||
Net Interest income | $ | 56,931 | $ | 48,459 | $ | 45,112 | $ | 36,822 | |||||||||
Net interest income after provision for loan losses | 30,728 | 28,381 | 28,211 | 21,831 | |||||||||||||
Other income | 31,906 | 61,337 | 55,489 | 40,434 | |||||||||||||
Costs and expenses | 48,045 | 42,207 | 45,258 | 38,575 | |||||||||||||
Income before taxes | 14,589 | 47,511 | 38,442 | 23,690 | |||||||||||||
Net income | 11,806 | 37,176 | 30,243 | 18,401 | |||||||||||||
Net (income) loss attributable to noncontrolling interest in consolidated joint ventures | (83 | ) | 306 | (46 | ) | 192 | |||||||||||
Net (income) loss attributable to predecessor unitholders | — | — | — | 12,628 | |||||||||||||
Net (income) loss attributable to noncontrolling interest in operating partnership | (7,350 | ) | (22,827 | ) | (17,691 | ) | (18,568 | ) | |||||||||
Net income attributable to Class A common shareholders | 4,374 | 14,656 | 12,505 | 12,652 | |||||||||||||
Earnings per share: | |||||||||||||||||
Basic | $ | 0.09 | $ | 0.3 | $ | 0.26 | $ | 0.26 | |||||||||
Diluted | $ | 0.09 | $ | 0.28 | $ | 0.22 | $ | 0.24 | |||||||||
Q4 2013 | Q3 2013 | Q2 2013 | Q1 2013 | ||||||||||||||
Interest income | $ | 30,516 | $ | 29,633 | $ | 30,168 | $ | 31,261 | |||||||||
Net interest income after provision for loan losses | 17,324 | 16,929 | 18,076 | 19,904 | |||||||||||||
Other income | 36,227 | 35,525 | 70,346 | 99,606 | |||||||||||||
Costs and expenses | 33,528 | 30,603 | 27,951 | 29,393 | |||||||||||||
Income before taxes | 20,023 | 21,851 | 60,471 | 90,117 | |||||||||||||
Net income | 19,744 | 21,187 | 59,752 | 88,050 | |||||||||||||
Net (income) loss attributable to noncontrolling interest in consolidated joint ventures | 1,796 | (1,025 | ) | 354 | (27 | ) | |||||||||||
Net income attributable to predecessor unitholders | 21,540 | 20,162 | 60,107 | 88,023 | |||||||||||||
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2014 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | 20. SUBSEQUENT EVENTS |
The Company has evaluated subsequent events through the issuance date of the financial statements and determined that the following disclosure is necessary: | |
Committed Loan Repurchase Facility | |
On February 19, 2015, the Company executed an amendment and extension of one of its credit facilities with a major banking institution, providing for, among other things, extending the maximum term of the facility to May 24, 2018, limiting the recourse exposure to the Company and modifying the pricing terms of the facility. | |
Special Stockholder Meeting and REIT Election | |
On February 26, 2015, the Company held a special meeting of its stockholders where holders of the Company’s Class A common stock and Class B common stock approved amendments to the Company’s charter that help ensure that the Company satisfies the ownership and other requirements for qualification as a REIT, and protect the Company from adverse consequences for REITs related to concentration of ownership, and also approved amendments to the Company’s Tax Receivable Agreement. The Company’s amended and restated certificate of incorporation was then amended and restated, effective as of February 27, 2015. Following the approval of the amendments to the Tax Receivable Agreement by stockholders holding a majority of Class A Common Stock and Class B Common Stock outstanding and entitled to vote, other than shares beneficially owned by a person who is a party to, or is an affiliate of a party to, the Tax Receivable Agreement, the Company has decided to proceed with the plans to elect to be a REIT for its tax year beginning January 1, 2015. As of March 4, 2015, the Company has made the necessary TRS and check-the-box elections and intends to elect to be taxed as a REIT on its September 2016 tax return. Refer to Note 1, Organization and Operations for additional discussion of the REIT Structuring Transactions. |
Schedule_III_Real_Estate_and_A
Schedule III - Real Estate and Accumulated Depreciation | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||||||||||||||||
SEC Schedule III, Real Estate and Accumulated Depreciation Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||
Schedule III - Real Estate and Accumulated Depreciation | Schedule III-Real Estate and Accumulated Depreciation | ||||||||||||||||||||||||||||||||||||||||||||||
Ladder Capital Corp | |||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||||||||||||||||||||||||
($ in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
Initial Cost to Company | Costs Capitalized Subsequent to Acquisition | Gross Amount at which Carried at Close of Period | Accumulated Depreciation and Amortization | Date Acquired | Year Built | Life on which Depreciation in Latest Statement of Income is Computed | |||||||||||||||||||||||||||||||||||||||||
Description | Encumbrances | Land | Building | Intangibles | Land | Building | Intangibles | Total | |||||||||||||||||||||||||||||||||||||||
Real Estate Under Operating Leases: | |||||||||||||||||||||||||||||||||||||||||||||||
Retail Property in Millbrook, AL | $ | 4,656 | $ | 970 | $ | 5,972 | $ | — | $ | — | $ | 970 | $ | 5,972 | $ | — | $ | 6,942 | $ | 519 | 3/28/12 | 2008 | 32yrs | ||||||||||||||||||||||||
Retail Property in Greenwood, AR | 3,453 | 1,038 | 3,415 | 694 | — | 1,038 | 3,415 | 694 | 5,147 | 352 | 4/12/12 | 2009 | 13-43yrs | ||||||||||||||||||||||||||||||||||
Retail Property in El Centro, CA | 2,988 | 569 | 3,133 | 575 | — | 569 | 3,133 | 575 | 4,277 | 49 | 8/8/14 | 2014 | 15-50yrs | ||||||||||||||||||||||||||||||||||
Retail Property in Bennett, CO | 2,501 | 470 | 2,503 | 549 | — | 470 | 2,503 | 563 | 3,536 | 32 | 10/2/14 | 2014 | 14-34yrs | ||||||||||||||||||||||||||||||||||
Retail Property in Woodland Park, CO | 2,821 | 668 | 2,681 | 620 | — | 668 | 2,681 | 620 | 3,969 | 18 | 11/14/14 | 2014 | 15-35yrs | ||||||||||||||||||||||||||||||||||
Retail Property in DeLeon Springs, FL | 828 | 239 | 782 | 221 | — | 239 | 782 | 221 | 1,242 | 118 | 8/13/12 | 2011 | 15-35yrs | ||||||||||||||||||||||||||||||||||
Retail Property in Orange City, FL | 797 | 229 | 853 | 235 | — | 229 | 853 | 235 | 1,317 | 130 | 5/23/12 | 2011 | 15-35yrs | ||||||||||||||||||||||||||||||||||
Retail Property in Satsuma, FL | 716 | 79 | 821 | 192 | — | 79 | 821 | 192 | 1,092 | 129 | 4/19/12 | 2011 | 15-35yrs | ||||||||||||||||||||||||||||||||||
Retail Property in Conyers, GA | 22,867 | 876 | 27,396 | 4,258 | — | 876 | 27,396 | 4,258 | 32,530 | 342 | 8/28/14 | 2014 | 15-45yrs | ||||||||||||||||||||||||||||||||||
Retail Property in Douglasville, GA | 3,264 | 1,717 | 2,705 | 987 | — | 1,717 | 2,705 | 987 | 5,409 | 505 | 8/12/10 | 2008 | 13-48yrs | ||||||||||||||||||||||||||||||||||
Retail Property in Lilburn, GA | 3,474 | 1,090 | 3,673 | 1,028 | — | 1,090 | 3,673 | 1,028 | 5,791 | 640 | 8/12/10 | 2007 | 12-47yrs | ||||||||||||||||||||||||||||||||||
Retail Property in Snellville, GA | 5,337 | 1,293 | 5,724 | 983 | — | 1,293 | 5,724 | 983 | 8,000 | 715 | 4/4/12 | 2011 | 14-34yrs | ||||||||||||||||||||||||||||||||||
Retail Property in Ankeny, IA | 11,790 | 3,180 | 10,513 | 2,817 | — | 3,180 | 10,513 | 2,843 | 16,536 | 75 | 11/4/14 | 2013 | 14-39yrs | ||||||||||||||||||||||||||||||||||
Retail Property in Cedar Rapids, IA | 7,855 | 1,569 | 7,553 | 1,878 | — | 1,569 | 7,553 | 1,878 | 11,000 | 63 | 11/4/14 | 2012 | 10-30yrs | ||||||||||||||||||||||||||||||||||
Retail Property in Fairfield, IA | 7,641 | 1,132 | 7,779 | 1,784 | — | 1,132 | 7,779 | 1,800 | 10,711 | 55 | 11/4/14 | 2011 | 12-37yrs | ||||||||||||||||||||||||||||||||||
Retail Property in Muscatine, IA | 3,754 | 1,060 | 6,636 | (546 | ) | — | 1,060 | 6,636 | 1,293 | 8,989 | 37 | 11/4/14 | 2013 | 10-29yrs | |||||||||||||||||||||||||||||||||
Retail Property in Sheldon, IA | 1,720 | 633 | 3,053 | 614 | — | 633 | 3,053 | 707 | 4,393 | 22 | 11/4/14 | 2011 | 12-37yrs | ||||||||||||||||||||||||||||||||||
Retail Property in O'Fallon, IL | 5,694 | 2,488 | 5,388 | 125 | — | 2,488 | 5,388 | 1,036 | 8,912 | 174 | 8/8/14 | 1984 | 7-15yrs | ||||||||||||||||||||||||||||||||||
Initial Cost to Company | Costs Capitalized Subsequent to Acquisition | Gross Amount at which Carried at Close of Period | Accumulated Depreciation and Amortization | Date Acquired | Year Built | Life on which Depreciation in Latest Statement of Income is Computed | |||||||||||||||||||||||||||||||||||||||||
Description | Encumbrances | Land | Building | Intangibles | Land | Building | Intangibles | Total | |||||||||||||||||||||||||||||||||||||||
Retail Property in Evansville, IN | — | 1,788 | 6,348 | 864 | — | 1,788 | 6,348 | 864 | 9,000 | 25 | 11/26/14 | 2014 | 15-35yrs | ||||||||||||||||||||||||||||||||||
Retail Property in Wichita, KS | 4,842 | 1,187 | 4,850 | 1,163 | — | 1,187 | 4,850 | 1,163 | 7,200 | 499 | 12/14/12 | 2012 | 14-34yrs | ||||||||||||||||||||||||||||||||||
Retail Property in North Dartsmouth, MA | 19,260 | 7,033 | 19,745 | 3,187 | — | 7,033 | 19,745 | 3,187 | 29,965 | 2,783 | 9/21/12 | 1989 | 10-20yrs | ||||||||||||||||||||||||||||||||||
Retail Property in Pittsfield, MA | 11,187 | 1,801 | 11,556 | 1,344 | — | 1,801 | 11,556 | 1,344 | 14,701 | 1,256 | 2/17/12 | 2011 | 14-34yrs | ||||||||||||||||||||||||||||||||||
Retail Property in Elkton, MD | 2,928 | 963 | 3,049 | 860 | — | 963 | 3,049 | 860 | 4,872 | 537 | 7/27/10 | 2008 | 14-49yrs | ||||||||||||||||||||||||||||||||||
Retail Property in Waldorf, MD | 12,209 | 4,933 | 11,684 | 2,186 | — | 4,933 | 11,684 | 2,803 | 19,420 | 1,469 | 9/21/12 | 1999 | 10-25yrs | ||||||||||||||||||||||||||||||||||
Retail Property in Owatonna, MN | 4,133 | 1,398 | 7,125 | 1,446 | — | 1,398 | 7,125 | 1,563 | 10,086 | 51 | 11/4/14 | 2010 | 11-36yrs | ||||||||||||||||||||||||||||||||||
Retail Property in Worthington, MN | — | 1,432 | 5,510 | 1,378 | — | 1,432 | 5,510 | 1,431 | 8,373 | 7 | 12/22/14 | 2010 | 10-35yrs | ||||||||||||||||||||||||||||||||||
Retail Property in Springfield, MO | 6,080 | 3,658 | 6,296 | 1,721 | — | 3,658 | 6,296 | 1,868 | 11,822 | 48 | 11/4/14 | 2011 | 12-37yrs | ||||||||||||||||||||||||||||||||||
Retail Property in Tupelo, MS | 3,090 | 1,120 | 3,070 | 939 | — | 1,120 | 3,070 | 939 | 5,129 | 554 | 8/13/10 | 2007 | 12-47yrs | ||||||||||||||||||||||||||||||||||
Retail Property in Mooresville, NC | 10,887 | 2,615 | 12,462 | 2,566 | — | 2,615 | 12,462 | 2,566 | 17,643 | 1,637 | 9/21/12 | 2000 | 12-24yrs | ||||||||||||||||||||||||||||||||||
Retail Property in Mt. Airy, NC | 2,925 | 729 | 3,353 | 411 | — | 729 | 3,353 | 599 | 4,681 | 244 | 12/27/12 | 2007 | 9-39yrs | ||||||||||||||||||||||||||||||||||
Retail Property in Plattsmouth, NE | — | 1,446 | 5,220 | 1,313 | — | 1,446 | 5,220 | 1,363 | 8,029 | 6 | 12/22/14 | 1999 | 12-37yrs | ||||||||||||||||||||||||||||||||||
Retail Property in Vineland, NJ | 13,984 | 1,482 | 17,742 | 3,282 | — | 1,482 | 17,742 | 3,282 | 22,506 | 1,946 | 9/21/12 | 2003 | 12-30yrs | ||||||||||||||||||||||||||||||||||
Retail Property in Bellport, NY | 12,925 | 3,601 | 12,465 | 2,034 | — | 3,601 | 12,465 | 2,034 | 18,100 | 72 | 11/13/14 | 2014 | 15-35yrs | ||||||||||||||||||||||||||||||||||
Retail Property in Saratoga Springs, NY | 12,502 | 748 | 13,936 | 5,538 | — | 748 | 13,936 | 5,538 | 20,222 | 1,841 | 9/21/12 | 1994 | 15-27yrs | ||||||||||||||||||||||||||||||||||
Retail Property in Sennett, NY | 4,784 | 1,147 | 4,480 | 1,848 | — | 1,147 | 4,480 | 1,848 | 7,475 | 724 | 9/21/12 | 1996 | 10-23yrs | ||||||||||||||||||||||||||||||||||
Retail Property in Durant, OK | 3,223 | 594 | 3,900 | 498 | — | 594 | 3,900 | 498 | 4,992 | 252 | 1/28/13 | 2007 | 10-40yrs | ||||||||||||||||||||||||||||||||||
Retail Property in Aiken, SC | 3,852 | 1,588 | 3,480 | 858 | — | 1,588 | 3,480 | 858 | 5,926 | 285 | 12/21/12 | 2008 | 11-41yrs | ||||||||||||||||||||||||||||||||||
Retail Property in Columbia, SC | 5,192 | 2,148 | 4,629 | 1,023 | — | 2,148 | 4,629 | 1,023 | 7,800 | 603 | 4/4/12 | 2001 | 14-34yrs | ||||||||||||||||||||||||||||||||||
Initial Cost to Company | Costs Capitalized Subsequent to Acquisition | Gross Amount at which Carried at Close of Period | Accumulated Depreciation and Amortization | Date Acquired | Year Built | Life on which Depreciation in Latest Statement of Income is Computed | |||||||||||||||||||||||||||||||||||||||||
Description | Encumbrances | Land | Building | Intangibles | Land | Building | Intangibles | Total | |||||||||||||||||||||||||||||||||||||||
Retail Property in Lexington, SC | 2,898 | 1,644 | 2,219 | 869 | — | 1,644 | 2,219 | 869 | 4,732 | 462 | 6/28/10 | 2009 | 13-48yrs | ||||||||||||||||||||||||||||||||||
Retail Property in Spartanburg, SC | 2,792 | 828 | 2,567 | 476 | — | 828 | 2,567 | 718 | 4,113 | 400 | 1/14/11 | 2007 | 12-42yrs | ||||||||||||||||||||||||||||||||||
Retail Property in Gallatin, TN | 3,294 | 1,725 | 2,616 | 721 | — | 1,725 | 2,616 | 721 | 5,062 | 233 | 12/28/12 | 2007 | 11-40yrs | ||||||||||||||||||||||||||||||||||
Retail Property in Johnson City, TN | 3,424 | 917 | 3,607 | 739 | — | 917 | 3,607 | 739 | 5,263 | 287 | 12/21/12 | 2007 | 11-40yrs | ||||||||||||||||||||||||||||||||||
Retail Property in Memphis, TN | 3,945 | 1,986 | 2,800 | 524 | — | 1,986 | 2,800 | 799 | 5,585 | 49 | 10/24/14 | 1962 | 5-15yrs | ||||||||||||||||||||||||||||||||||
Retail Property in Ooltewah, TN | 3,869 | 903 | 3,957 | 843 | — | 903 | 3,957 | 843 | 5,703 | 309 | 12/18/12 | 2008 | 11-41yrs | ||||||||||||||||||||||||||||||||||
Retail Property in Palmview, TX | 4,620 | 938 | 4,837 | 1,044 | — | 938 | 4,837 | 1,044 | 6,819 | 330 | 12/19/12 | 2012 | 11-44yrs | ||||||||||||||||||||||||||||||||||
Retail Property in Abingdon, VA | 3,107 | 682 | 3,733 | 273 | — | 682 | 3,733 | 623 | 5,038 | 251 | 12/18/12 | 2006 | 11-41yrs | ||||||||||||||||||||||||||||||||||
Total Retail | 254,108 | 70,334 | 287,816 | 56,962 | — | 70,334 | 287,816 | 61,900 | 420,050 | 21,135 | |||||||||||||||||||||||||||||||||||||
Office in Oakland County, MI | 12,334 | 1,147 | 7,707 | 9,146 | 1,218 | 1,147 | 9,010 | 9,556 | 19,713 | 5,348 | 2/1/13 | 1989 | 4-35yrs | ||||||||||||||||||||||||||||||||||
Office in Minneapolis, MN | 40,965 | 9,447 | 27,569 | 14,262 | 2,446 | 9,447 | 30,014 | 14,516 | 53,977 | 3,876 | 10/9/13 | 1960 | 7-30yrs | ||||||||||||||||||||||||||||||||||
Office in St. Paul, MN | 49,979 | 9,415 | 33,682 | 19,243 | 375 | 9,415 | 34,057 | 20,519 | 63,991 | 1,578 | 9/22/14 | 1900 | 7-19yrs | ||||||||||||||||||||||||||||||||||
Office in Henrico, VA | 89,895 | 14,632 | 87,629 | 16,145 | 1,086 | 14,632 | 88,745 | 16,923 | 120,300 | 13,354 | 6/7/13 | 1984 | 4-41yrs | ||||||||||||||||||||||||||||||||||
Office in Henrico, VA | 15,816 | 4,539 | 12,633 | 2,678 | 59 | 4,539 | 12,692 | 2,704 | 19,935 | 564 | 8/14/14 | 1986 | 4-33yrs | ||||||||||||||||||||||||||||||||||
Total Office | 208,989 | 39,180 | 169,220 | 61,474 | 5,184 | 39,180 | 174,518 | 64,218 | 277,916 | 24,720 | |||||||||||||||||||||||||||||||||||||
Condominium in Miami, FL(1) | 5,821 | 10,487 | 67,895 | 1,618 | — | 8,044 | 52,081 | 1,241 | 61,366 | 1,714 | 11/21/13 | 2010 | 7-47yrs | ||||||||||||||||||||||||||||||||||
Condominium in Las Vegas, NV(1) | — | 4,900 | 114,100 | — | — | 4,900 | 55,359 | — | 60,259 | 3,036 | 12/20/12 | 2006 | 40yrs | ||||||||||||||||||||||||||||||||||
Total Condominium | 5,821 | 15,387 | 181,995 | 1,618 | — | 12,944 | 107,440 | 1,241 | 121,625 | 4,750 | |||||||||||||||||||||||||||||||||||||
Total Real Estate Under Operating Leases | $ | 468,918 | -2 | $ | 124,901 | $ | 639,031 | $ | 120,054 | $ | 5,184 | $ | 122,458 | $ | 569,774 | $ | 127,359 | $ | 819,591 | -3 | $ | 50,605 | |||||||||||||||||||||||||
(1) Gross carrying value amounts are charged off as cost of sales upon delivery of condo units. | |||||||||||||||||||||||||||||||||||||||||||||||
(2) Includes $21,506,698 of encumbrances from repurchase agreements. | |||||||||||||||||||||||||||||||||||||||||||||||
(3) The aggregate cost for Federal income tax purposes is $819,590,851. | |||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of Real Estate: | |||||||||||||||||||||||||||||||||||||||||||||||
The following table reconciles real estate from December 31, 2013 to December 31, 2014 ($ in thousands): | |||||||||||||||||||||||||||||||||||||||||||||||
Total Real Estate | Commercial Real Estate | Residential Real Estate | |||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2013 | $ | 649,820 | $ | 474,465 | $ | 175,355 | |||||||||||||||||||||||||||||||||||||||||
Improvements and additions | 267,367 | 267,367 | — | ||||||||||||||||||||||||||||||||||||||||||||
Acquisitions through foreclosures | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Dispositions | (97,596 | ) | (43,867 | ) | (53,729 | ) | |||||||||||||||||||||||||||||||||||||||||
Impairments | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2014 | $ | 819,591 | $ | 697,965 | $ | 121,626 | |||||||||||||||||||||||||||||||||||||||||
The following table reconciles real estate from December 31, 2012 to December 31, 2013 ($ in thousands): | |||||||||||||||||||||||||||||||||||||||||||||||
Total Real Estate | Commercial Real Estate | Residential Real Estate | |||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2012 | $ | 384,082 | $ | 265,082 | $ | 119,000 | |||||||||||||||||||||||||||||||||||||||||
Improvements and additions | 289,383 | 209,383 | 80,000 | ||||||||||||||||||||||||||||||||||||||||||||
Acquisitions through foreclosures | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Dispositions | (23,645 | ) | — | (23,645 | ) | ||||||||||||||||||||||||||||||||||||||||||
Impairments | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2013 | $ | 649,820 | $ | 474,465 | $ | 175,355 | |||||||||||||||||||||||||||||||||||||||||
Reconciliation of Accumulated Depreciation and Amortization: | |||||||||||||||||||||||||||||||||||||||||||||||
The following table reconciles accumulated depreciation and amortization from December 31, 2013 to December 31, 2014 ($ in thousands): | |||||||||||||||||||||||||||||||||||||||||||||||
Total Real Estate | Commercial Real Estate | Residential Real Estate | |||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2013 | $ | 25,601 | $ | 23,061 | $ | 2,540 | |||||||||||||||||||||||||||||||||||||||||
Additions | 28,916 | 25,212 | 3,704 | ||||||||||||||||||||||||||||||||||||||||||||
Dispositions | (3,912 | ) | (2,417 | ) | (1,495 | ) | |||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2014 | $ | 50,605 | $ | 45,856 | $ | 4,749 | |||||||||||||||||||||||||||||||||||||||||
The following table reconciles accumulated depreciation and amortization from December 31, 2012 to December 31, 2013 ($ in thousands): | |||||||||||||||||||||||||||||||||||||||||||||||
Total Real Estate | Commercial Real Estate | Residential Real Estate | |||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2012 | $ | 4,061 | $ | 4,061 | $ | — | |||||||||||||||||||||||||||||||||||||||||
Additions | 21,821 | 19,000 | 2,821 | ||||||||||||||||||||||||||||||||||||||||||||
Dispositions | (281 | ) | — | (281 | ) | ||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2013 | $ | 25,601 | $ | 23,061 | $ | 2,540 | |||||||||||||||||||||||||||||||||||||||||
Schedule_IV_Mortgage_Loans_on_
Schedule IV - Mortgage Loans on Real Estate | 12 Months Ended | |||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||
Mortgage Loans on Real Estate [Abstract] | ||||||||||||||||||||||||||
Schedule IV - Mortgage Loans on Real Estate | Schedule IV-Mortgage Loans on Real Estate | |||||||||||||||||||||||||
Ladder Capital Corp | ||||||||||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||||||||
($ in thousands) | ||||||||||||||||||||||||||
Type of Loan | Underlying Property Type | Interest Rates (1) | Effective Maturity Dates | Periodic Payment Terms (2) | Prior Liens | Face amount of Mortgages | Carrying Amount of Mortgages | Principal Amount of Mortgages Subject to Delinquent Principal or Interest | ||||||||||||||||||
First Mortgages individually >3% | ||||||||||||||||||||||||||
First Mortgage | Hotel | 9.38% | 4/6/15 | P&I | — | $ | 96,722 | $ | 96,524 | $ | — | |||||||||||||||
First Mortgage | Hotel | 5.25% | 3/6/16 | P&I | — | 71,265 | 70,735 | — | ||||||||||||||||||
First Mortgage | Office | 5.16% | 5/6/16 | P&I | — | 135,991 | 135,260 | — | ||||||||||||||||||
First Mortgage | Multi-family | 5.75% | 5/6/16 | P&I | — | 122,732 | 121,761 | — | ||||||||||||||||||
First Mortgage | Office | 4.35% | 8/6/16 | IO | — | 64,000 | 63,730 | — | ||||||||||||||||||
First Mortgage | Hotel | 5.50% | 6/6/17 | P&I | — | 73,341 | 72,847 | — | ||||||||||||||||||
First Mortgage | Mobile Home Park | 5.00% | 9/6/17 | P&I | — | 97,500 | 96,504 | — | ||||||||||||||||||
First Mortgage | Retail | 4.45% | 12/6/24 | IO | — | 80,000 | 80,000 | — | ||||||||||||||||||
First Mortgage | Healthcare | 3.37% | 1/6/26 | IO | — | 98,290 | 98,290 | — | ||||||||||||||||||
First Mortgages individually <3% | ||||||||||||||||||||||||||
First Mortgage | Apartment, Condo, Hotel, Industrial, Multi-family, Office, Other Commercial, Retail, Self Storage | 3.91% - 12.00% | 2015 - 2033 | — | 951,590 | 944,058 | 8,073 | -4 | ||||||||||||||||||
Total First Mortgages | $ | — | $ | 1,791,431 | $ | 1,779,709 | $ | 8,073 | ||||||||||||||||||
Subordinate Mortgages individually <3% | Hotel, Multi-family, Office, Retail | 6.04% - 19.00% | 2015 - 2025 | 1,193,237 | 163,447 | 162,399 | — | |||||||||||||||||||
Subordinated Mortgages | $ | 1,193,237 | $ | 163,447 | $ | 162,399 | $ | — | ||||||||||||||||||
Total Mortgages | $ | 1,193,237 | $ | 1,954,878 | $ | 1,942,108 | $ | 8,073 | ||||||||||||||||||
Provision for Loan Losses | N/A | N/A | $ | (3,100 | ) | N/A | ||||||||||||||||||||
Total Mortgages after Provision for Loan Losses | $ | 1,193,237 | $ | 1,954,878 | $ | 1,939,008 | -1 | $ | 8,073 | |||||||||||||||||
(1) Interest rates as of December 31, 2014 | ||||||||||||||||||||||||||
(2) IO =nterest only | ||||||||||||||||||||||||||
P&I =rincipal and interest | ||||||||||||||||||||||||||
(3) The aggregate cost for Federal income tax purposes is $1,962,379,356 | ||||||||||||||||||||||||||
(4) Loan was no originated by the Company but rather purchased at a discount | ||||||||||||||||||||||||||
Reconciliation of mortgage loans on real estate: | ||||||||||||||||||||||||||
The following tables reconcile mortgage loans on real estate from December 31, 2011 to December 31, 2014 ($ in thousands): | ||||||||||||||||||||||||||
Mortgage loan | Mortgage loan | Total Mortgage loan | ||||||||||||||||||||||||
receivables held | receivables held | receivables | ||||||||||||||||||||||||
for investment, at | for sale | |||||||||||||||||||||||||
amortized cost | ||||||||||||||||||||||||||
Balance December 31, 2013 | $ | 539,078 | $ | 440,490 | $ | 979,568 | ||||||||||||||||||||
Origination of mortgage loan receivables | 1,201,968 | 3,345,372 | 4,547,340 | |||||||||||||||||||||||
Repayment of mortgage loan receivables | (214,511 | ) | (1,293 | ) | (215,804 | ) | ||||||||||||||||||||
Proceeds from sales of mortgage loan receivables | — | (3,523,688 | ) | (3,523,688 | ) | |||||||||||||||||||||
Realized gain on sale of mortgage loan receivables | — | 145,274 | 145,274 | |||||||||||||||||||||||
Transfer between held for investment and held for sale | (11,800 | ) | 11,800 | — | ||||||||||||||||||||||
Accretion/amortization of discount, premium and other fees | 6,918 | — | 6,918 | |||||||||||||||||||||||
Loan loss provision | (600 | ) | — | (600 | ) | |||||||||||||||||||||
Balance December 31, 2014 | $ | 1,521,053 | $ | 417,955 | $ | 1,939,008 | ||||||||||||||||||||
Mortgage loan | Mortgage loan | Total Mortgage loan | ||||||||||||||||||||||||
receivables held | receivables held | receivables | ||||||||||||||||||||||||
for investment, at | for sale | |||||||||||||||||||||||||
amortized cost | ||||||||||||||||||||||||||
Balance December 31, 2012 | $ | 326,319 | $ | 623,333 | $ | 949,652 | ||||||||||||||||||||
Origination of mortgage loan receivables | 486,072 | 2,013,674 | 2,499,746 | |||||||||||||||||||||||
Repayment of mortgage loan receivables | (268,093 | ) | (5,840 | ) | (273,933 | ) | ||||||||||||||||||||
Proceeds from sales of mortgage loan receivables | — | (2,345,705 | ) | (2,345,705 | ) | |||||||||||||||||||||
Realized gain on sale of mortgage loan receivables | — | 146,708 | 146,708 | |||||||||||||||||||||||
Transfer between held for investment and held for sale | (8,320 | ) | 8,320 | — | ||||||||||||||||||||||
Accretion/amortization of discount, premium and other fees | 3,700 | — | 3,700 | |||||||||||||||||||||||
Loan loss provision | (600 | ) | — | (600 | ) | |||||||||||||||||||||
Balance December 31, 2013 | $ | 539,078 | $ | 440,490 | $ | 979,568 | ||||||||||||||||||||
Mortgage loan | Mortgage loan | Total Mortgage loan | ||||||||||||||||||||||||
receivables held | receivables held | receivables | ||||||||||||||||||||||||
for investment, at | for sale | |||||||||||||||||||||||||
amortized cost | ||||||||||||||||||||||||||
Balance December 31, 2011 | $ | 255,196 | $ | 258,842 | $ | 514,038 | ||||||||||||||||||||
Origination of mortgage loan receivables | 341,947 | 2,036,139 | 2,378,086 | |||||||||||||||||||||||
Repayment of mortgage loan receivables | (204,913 | ) | (75,655 | ) | (280,568 | ) | ||||||||||||||||||||
Proceeds from sales of mortgage loan receivables | — | (1,815,996 | ) | (1,815,996 | ) | |||||||||||||||||||||
Realized gain on sale of mortgage loan receivables | — | 151,662 | 151,662 | |||||||||||||||||||||||
Transfer between held for investment and held for sale | (68,081 | ) | 68,081 | — | ||||||||||||||||||||||
Accretion/amortization of discount, premium and other fees | 2,619 | 260 | 2,879 | |||||||||||||||||||||||
Loan loss provision | (449 | ) | — | (449 | ) | |||||||||||||||||||||
Balance December 31, 2012 | $ | 326,319 | $ | 623,333 | $ | 949,652 | ||||||||||||||||||||
SIGNIFICANT_ACCOUNTING_POLICIE1
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended | |
Dec. 31, 2014 | ||
Accounting Policies [Abstract] | ||
Basis of Accounting and Principles of Combination and Consolidation | Basis of Accounting and Principles of Combination and Consolidation | |
The accompanying combined consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). | ||
The combined consolidated financial statements include the Company’s accounts and those of its subsidiaries which are majority-owned and/or controlled by the Company and variable interest entities for which the Company has determined itself to be the primary beneficiary, if any. All significant intercompany transactions and balances have been eliminated. The combined consolidated financial statements of the Company are comprised of the consolidation of LCFH and its wholly-owned and majority owned subsidiaries, prior to the IPO Transactions, and the consolidated financial statements of Ladder Capital Corp, subsequent to the IPO Transactions. | ||
Accounting Standards Codification (“ASC”) Topic 810 — Consolidation (“ASC 810”), provides guidance on the identification of entities for which control is achieved through means other than voting rights (“variable interest entities” or “VIEs”) and the determination of which business enterprise, if any, should consolidate the VIEs. Generally, the consideration of whether an entity is a VIE applies when either: (1) the equity investors (if any) lack one or more of the essential characteristics of a controlling financial interest; (2) the equity investment at risk is insufficient to finance that entity’s activities without additional subordinated financial support; or (3) the equity investors have voting rights that are not proportionate to their economic interests and the activities of the entity involve or are conducted on behalf of an investor with a disproportionately small voting interest. The Company consolidates VIEs in which it is considered to be the primary beneficiary. The primary beneficiary is defined by the entity having both of the following characteristics: (1) the power to direct the activities that, when taken together, most significantly impact the variable interest entity’s performance; and (2) the obligation to absorb losses and right to receive the returns from the VIE that would be significant to the VIE. As of December 31, 2014, the Company does not have investments in VIEs. | ||
Noncontrolling interests in consolidated subsidiaries are defined as “the portion of the equity (net assets) in the subsidiaries not attributable, directly or indirectly, to a parent.” Noncontrolling interests are presented as a separate component of capital in the combined consolidated balance sheets. In addition, the presentation of net income attributes earnings to shareholders/unitholders (controlling interest) and noncontrolling interests. | ||
Use of Estimates | Use of Estimates | |
The preparation of the combined consolidated financial statements in conformity with accounting principles generally accepted in the United States 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 dates of the balance sheets and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Estimates and assumptions are reviewed periodically and the effects of resulting changes are reflected in the combined consolidated financial statements in the period the changes are deemed to be necessary. Significant estimates made in the accompanying combined consolidated financial statements include, but are not limited to the following: | ||
• | valuation of real estate securities; | |
• | allocation of purchase price for acquired real estate; | |
• | impairment, and useful lives, of real estate; | |
• | useful lives of intangible assets; | |
• | valuation of derivative instruments; | |
• | valuation of deferred tax asset; | |
• | amounts payable pursuant to the Tax Receivable Agreement; | |
• | determination of effective yield for recognition of interest income; | |
• | adequacy of provision for loan losses; | |
• | determination of other than temporary impairment of real estate securities and investments in unconsolidated joint ventures; | |
• | certain estimates and assumptions used in the accrual of incentive compensation and calculation of the fair value of equity compensation issued to employees; | |
• | determination of the effective tax rate for income tax provision; and | |
• | certain estimates and assumptions used in the allocation of revenue and expenses for our segment reporting. | |
Comprehensive Income | Comprehensive Income | |
Comprehensive income is defined as the change in equity of a business enterprise during a period from transactions and other events and circumstances, excluding those resulting from investments by and distributions to owners. For the Company’s purposes, comprehensive income represents net income, as presented in the combined consolidated statements of income, adjusted for unrealized gains or losses on securities available for sale and as further adjusted for realized gains or losses on securities sold. | ||
Cash and Cash Equivalents | Cash and Cash Equivalents | |
The Company considers all investments with original maturities of three months or less, at the time of acquisition, to be cash equivalents. The Company maintains cash accounts at several financial institutions, which are insured up to a maximum of $250,000 per account as of December 31, 2014 and 2013. At December 31, 2014 and 2013 and at various times during the years, balances exceeded the insured limits. | ||
Cash Collateral Held by Broker | Cash Collateral Held by Broker | |
The Company maintains accounts with brokers to facilitate financial derivative and repurchase agreement transactions in support of its loan and securities investments and risk management activities. Based on the value of the positions in these accounts and the associated margin requirements, the Company may be required to deposit additional cash into these broker accounts. The cash collateral held by broker is considered restricted cash. | ||
Mortgage Loans Receivable Held for Investment | Mortgage Loans Receivable Held for Investment | |
Loans that the Company has the intent and ability to hold for the foreseeable future, or until maturity or payoff, are reported at their outstanding principal balances net of any unearned income, unamortized deferred fees or costs, premiums or discounts and an allowance for loan losses. Loan origination fees and direct loan origination costs are deferred and recognized in interest income over the estimated life of the loans using the interest method, adjusted for actual prepayments. Upon the decision to sell such loans, the Company will transfer the loan from mortgage loan receivables held for investment to mortgage loan receivables held for sale at the lower of carrying value or fair value less cost to sell on the combined consolidated balance sheets. | ||
The Company evaluates each loan classified as a mortgage loan receivable held for investment for impairment at least quarterly. Impairment occurs when it is deemed probable that the Company will not be able to collect all amounts due according to the contractual terms of the loan. If the loan is considered to be impaired, an allowance is recorded to reduce the carrying value of the loan to the present value of the expected future cash flows discounted at the loan’s contractual effective rate or the fair value of the collateral, if recovery of the Company’s investment is expected solely from the collateral. | ||
The Company’s loans are typically collateralized by real estate. As a result, the Company regularly evaluates the extent and impact of any credit deterioration associated with the performance and/or value of the underlying collateral property as well as the financial and operating capability of the borrower/sponsor on a loan by loan basis. The Company also evaluates the financial wherewithal of any loan guarantors as well as the borrower’s competency in managing and operating the properties. In addition, the Company considers the overall economic environment, real estate sector, and geographic sub-market in which the borrower operates. Such impairment analyses are completed and reviewed by asset management personnel, who utilize various data sources, including (i) periodic financial data such as property occupancy, tenant profile, rental rates, operating expenses, the borrowers exit plan, and capitalization and discount rates, (ii) site inspections, and (iii) current credit spreads and other market data. | ||
Upon the completion of the process above, the Company concluded that no loans originated by the Company were impaired as of December 31, 2014 and December 31, 2013. Significant judgment is required when evaluating loans for impairment, therefore actual results over time could be materially different. | ||
In addition, the Company assesses a portfolio-based loan loss provision. The Company estimates its loan loss provision based on its historical loss experience and expectation of losses inherent in the investment portfolio but not yet realized. Since inception, the Company has had no events of impairment on any of the loans it has originated, however, to ensure that the risk exposures are properly measured and the appropriate reserves are taken, the Company assesses a loan loss provision balance that will grow over time with its portfolio and the related risk as the assets are aged and approach maturity and ultimate refinancing where applicable. | ||
Real Estate Securities | Real Estate Securities | |
The Company designates its real estate securities investments on the date of acquisition of the investment. Real estate securities that the Company does not hold for the purpose of selling in the near-term, but may dispose of prior to maturity, are designated as available-for-sale and are carried at estimated fair value with the net unrealized gains or losses on all securities, except for Government National Mortgage Association (“GNMA”) interest-only and Federal Home Loan Mortgage Corp (“FHLMC”) interest-only securities (collectively, “Agency interest-only securities”), recorded as a component of other comprehensive income (loss) in partners’ capital. | ||
The Company’s Agency interest-only securities are considered to be hybrid financial instruments that contain embedded derivatives. As a result, the Company accounts for them as hybrid instruments in their entirety at fair value with changes in fair value recognized in earnings in the combined consolidated statements of income in accordance with ASC 815. The Company’s recognition of interest income from its Agency interest-only and all other securities, including effective interest from amortization of premiums, follows the Company’s Revenue Recognition policy as disclosed within this footnote for recognizing interest income on its securities. The interest income recognized from the Company’s Agency interest-only securities is recorded in interest income on the combined consolidated statements of income. The Company uses the specific identification method when determining the cost of securities sold and the amount reclassified out of accumulated other comprehensive income into earnings. The Company accounts for the changes in the fair value of the unfunded portion of its GNMA Construction securities, which are included in real estate securities, available-for-sale, on the combined consolidated balance sheet, as available for sale securities. Unrealized losses on securities that, in the judgment of management, are other than temporary are charged against earnings as a loss in the combined consolidated statements of income. The Company estimates the fair value of its commercial mortgage-backed securities (“CMBS”) primarily based on pricing services and broker quotes for the same or similar securities in which it has invested. Different judgments and assumptions could result in materially different estimates of fair value. | ||
When the estimated fair value of an available-for-sale security is less than amortized cost, the Company will consider whether there is an other-than-temporary impairment in the value of the security. An impairment will be considered other-than-temporary based on consideration of several factors, including (i) if the Company intends to sell the security, (ii) if it is more likely than not that the Company will be required to sell the security before recovering its cost, or (iii) the Company does not expect to recover the security’s cost basis (i.e., a credit loss). A credit loss will have occurred if the present value of cash flows expected to be collected from the debt security is less than the amortized cost basis. If the Company intends to sell an impaired debt security or it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis less any current period credit loss, the impairment is other-than-temporary and will be recognized currently in earnings equal to the entire difference between fair value and amortized cost. If a credit loss exists, but the Company does not intend to, nor is it more likely than not that it will be required to sell before recovery, the impairment is other-than-temporary and will be separated into (i) the estimated amount relating to the credit loss, and (ii) the amount relating to all other factors. Only the estimated credit loss amount is recognized currently in earnings, with the remainder of the loss recognized in other comprehensive income. Estimating cash flows and determining whether there is other-than-temporary impairment require management to exercise judgment and make significant assumptions, including, but not limited to, assumptions regarding estimated prepayments, loss assumptions, and assumptions regarding changes in interest rates. As a result, actual impairment losses, and the timing of income recognized on these securities, could differ from reported amounts. | ||
The Company considers information from selected third party pricing services in determining the fair value of its securities. The Company develops an understanding of the valuation methodologies used by such pricing services through discussions with their representatives and review of their valuation methodologies used for different types of securities. | ||
The Company understands that the pricing services develop estimates of fair value for CMBS and other commercial real estate securities guaranteed by a U.S. governmental agency or by a government sponsored entity (together, “U.S. Agency Securities”) using various techniques, including discussion with their internal trading desks, proprietary models and matrix pricing approaches. The Company does not have access to, and is therefore not able to review in detail, the inputs used by the pricing services in developing their estimates of fair value. However, on at least a monthly basis as part of our closing process, the Company evaluates the fair value information provided by the pricing services by comparing this information for reasonableness against its direct observations of market activity for similar securities and anecdotal information obtained from market participants that, in its assessment, is relevant to the determination of fair value. This process may result in the Company “challenging” the estimate of fair value for a security if it is unable to reconcile the estimate provided by the pricing service with its assessment of fair value for the security. Accordingly, in following this approach, the Company’s objective is to ensure that the information used by pricing services in their determination of fair value of securities is reasonable and appropriate. | ||
The Company requests prices for each of its CMBS and U.S. Agency Securities investments from three different sources. Typically, two prices per security are obtained. The Company may also develop a price for a security based on its direct observations of market activity and other observations if there is either significant variation in the values obtained from the pricing services or if the Company challenges the prices provided. The Company then utilizes the simple average of the available prices to determine the value used for financial reporting. The Company may occasionally utilize broker quotes as a price validation; however, since broker quotes are non-binding, the Company does not consider them to be a primary source for valuation. | ||
Since inception, the Company has not encountered significant variation in the values obtained from the various pricing sources. In the extremely limited occasions where the prices received were challenged, the challenge resulted in the prices provided by the pricing services being updated to reflect current market updates or cash flow assumptions. The lack of significant variation and challenges are directly related to the high liquidity and transparency of the securities that constitute the portfolio. | ||
Real Estate | Real Estate | |
The Company records acquired real estate at cost and makes assessments as to the useful lives of depreciable assets. The Company considers the period of future benefit of the asset to determine its appropriate useful lives. Depreciation is computed using a straight-line method over the estimated useful life of 20 to 47 years for buildings, four to 15 years for building fixtures and improvements and the remaining lease term for acquired intangible lease assets. | ||
The Company classifies most of its investments in real estate as held and used. The Company measures and records a property that is classified as held and used at its carrying amount, adjusted for any depreciation expense and impairments, as applicable. | ||
Certain of the Company’s real estate investments are condominium units that the Company intends to sell over time. As of January 1, 2014, the date the Company adopted the accounting guidance in ASU 2014-8, Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity (“ASU 2014-8”), the results of operations and the related gain or loss on sale of properties that have been sold are reflected in other income or presented in discontinued operations in the combined consolidated statements of income due to fact that the disposal does not represent a strategic shift that has (or will have) a major effect on the Company’s operations and financial results and full disposal is not expected to be completed within one year. Prior to January 1, 2014, the results of operations and the related gain or loss on sale of condominium units that have been sold are not reflected as held for sale or presented in discontinued operations in the combined consolidated statements of income due to the significant continuing involvement in the real estate held through the consolidated homeowner’s association. | ||
Certain of the Company’s real estate is leased to others on a net lease basis where the tenant is generally responsible for payment of real estate taxes, property, building and general liability insurance and property and building maintenance. These leases are for fixed terms of varying length and provide for annual rentals. Rental income from leases is recognized on a straight-line basis over the term of the respective leases. The cumulative excess of rents recognized over amounts contractually due pursuant to the underlying leases are included in unbilled rent receivable within other assets in the combined consolidated balance sheets. | ||
Allocation of Purchase Price for Acquired Real Estate | Allocation of Purchase Price for Acquired Real Estate | |
In accordance with the guidance for business combinations, the Company determines whether a transaction or other event is a business combination. If the transaction is determined to be a business combination, the Company determines if the transaction should be considered to be a between entities under common control. The acquisition of an entity under common control is accounted for on the carryover basis of accounting whereby the assets and liabilities of the companies are recorded on the same basis as they were carried by the company under common control. All other business combinations, including rental property, are accounted for by applying the acquisition method of accounting. The Company will immediately expense acquisition related costs and fees associated with such acquisitions. | ||
Upon acquisition of rental property, the Company estimates the fair value of acquired tangible assets, consisting of land, building and improvements, and identified intangible assets and liabilities assumed, generally consisting of the fair value of (i) above and below market leases, (ii) in-place leases and (iii) tenant relationships. The Company allocates the purchase price to the assets acquired and liabilities assumed based on their fair values. The Company records goodwill or a gain on bargain purchase (if any) if the net assets acquired/liabilities assumed exceed the purchase consideration of a transaction. In estimating the fair value of the tangible and intangible assets acquired, the Company considers information obtained about each property as a result of its due diligence and marketing and leasing activities, and utilizes various valuation methods, such as estimated cash flow projections utilizing appropriate discount and capitalization rates, estimates of replacement costs net of depreciation, and available market information. The fair value of the tangible assets of an acquired property considers the value of the property as if it were vacant. | ||
Above-market and below-market lease values for acquired properties are initially recorded based on the present value (using a discount rate which reflects the risks associated with the leases acquired) of the difference between (i) the contractual amounts to be paid pursuant to each in-place lease and (ii) management’s estimate of fair market lease rates for each corresponding in-place lease, measured over a period equal to the remaining term of the lease for above-market leases and the remaining initial term plus the term of any below-market fixed rate renewal options for below-market leases. The capitalized above-market lease values are amortized as a reduction of base rental revenue over the remaining terms of the respective leases, and the capitalized below-market lease values are amortized as an increase to base rental revenue over the remaining initial terms plus the terms of any below-market fixed rate renewal options of the respective leases. If a tenant with a below market rent renewal does not renew, any remaining unamortized amount will be taken into income at that time. | ||
Other intangible assets acquired include amounts for in-place lease values and tenant relationship values, which are based on management’s evaluation of the specific characteristics of each tenant’s lease and the Company’s overall relationship with the respective tenant. Factors to be considered by management in its analysis of in-place lease values include an estimate of carrying costs during hypothetical expected lease-up periods considering current market conditions, and costs to execute similar leases. In estimating carrying costs, management includes real estate taxes, insurance and other operating expenses and estimates of lost rentals at market rates during the expected lease-up periods, depending on local market conditions. In estimating costs to execute similar leases, management considers leasing commissions, legal and other related expenses. Characteristics considered by management in valuing tenant relationships include the nature and extent of the Company’s existing business relationships with the tenant, growth prospects for developing new business with the tenant, the tenant’s credit quality and expectations of lease renewals. The value of in-place leases are amortized to expense over the remaining initial terms of the respective leases. The value of tenant relationship intangibles are amortized to expense over the anticipated life of the relationships but in no event do the amortization periods for intangible assets exceed the depreciable lives of the buildings. If a tenant terminates its lease, the unamortized portion of the in-place lease value and tenant relationship intangibles are charged to expense. | ||
The fair value of other investments and debt assumed are valued using techniques consistent with those disclosed in Note 8, depending on the nature of the investments or debt. The fair value of other assumed assets and liabilities are based on best information available at the time of the acquisition. | ||
Impairment of Property Held for Use | Impairment of Property Held for Use | |
On a periodic basis, management assesses whether there are any indicators that the value of the Company’s properties classified as held for use may be impaired. In addition to identifying any specific circumstances which may affect a property or properties, management considers other criteria for determining which properties may require assessment for potential impairment. The criteria considered by management include reviewing low leased percentages, significant near-term lease expirations, recently acquired properties, current and historical operating and/or cash flow losses, near-term mortgage debt maturities or other factors that might impact the Company’s intent and ability to hold the property. A property’s value is impaired only if management’s estimate of the aggregate future cash flows (undiscounted and without debt service charges) to be generated by the property is less than the carrying value of the property. To the extent impairment has occurred, the loss shall be measured as the excess of the carrying amount of the property over the fair value of the property. The Company’s estimates of aggregate future cash flows expected to be generated by each property are based on a number of assumptions. These assumptions are generally based on management’s experience in its local real estate markets and the effects of current market conditions. The assumptions are subject to economic and market uncertainties including, among others, demand for space, competition for tenants, changes in market rental rates, and costs to operate each property. As these factors are difficult to predict and are subject to future events that may alter management’s assumptions, the future cash flows estimated by management in its impairment analyses may not be achieved, and actual losses or impairments may be realized in the future. | ||
Real Estate Held for Sale | Real Estate Held for Sale | |
In accordance with accounting guidance found in ASC Topic 360 - Property, Plant, and Equipment (“ASC 360”), when assets are identified by management as held for sale, the Company discontinues depreciating the assets and estimates the sales price, net of selling costs, of such assets. If, in management’s opinion, the estimated net sales price of the assets which have been identified as held for sale is less than the net book value of the assets, an impairment charge will be recorded in the combined consolidated statements of income. | ||
If circumstances arise that previously were considered unlikely and, as a result, the Company decides not to sell a property previously classified as held for sale, the property is reclassified as held and used. A property that is reclassified is measured and recorded individually at the lower of (a) its carrying amount before the property was classified as held for sale, adjusted for any depreciation (amortization) expense that would have been recognized had the property been continuously classified as held and used, or (b) the fair value at the date of the subsequent decision not to sell. | ||
Sales of Real Estate | Sales of Real Estate | |
Gains on sales of real estate are recognized pursuant to the provisions included in ASC 360-20, Real Estate Sales (“ASC 360-20”). The specific timing of a sale is measured against various criteria in ASC 360-20 related to the terms of the transaction and any continuing involvement in the form of management or financial assistance associated with the properties. If the sales criteria for the full accrual method are not met, depending on the circumstances, the Company may not record a sale or it may record a sale but may defer some or all of the gain recognition. If the criteria for full accrual are not met, the Company may account for the transaction by applying the finance, leasing, profit sharing, deposit, installment or cost recovery methods, as appropriate, until the sales criteria for the full accrual method are met. | ||
Investments in Unconsolidated Joint Ventures | Investments in Unconsolidated Joint Ventures | |
The Company accounts for its investments in unconsolidated joint ventures under the equity method of accounting. The Company applies the equity method by initially recording these investments at cost, as investments in unconsolidated joint ventures, subsequently adjusted for equity in earnings and cash contributions and distributions. The outside basis portion of the Company’s joint ventures is amortized over the anticipated useful lives of the underlying ventures’ tangible and intangible assets acquired and liabilities assumed. Generally, the Company would discontinue applying the equity method when the investment (and any advances) is reduced to zero and would not provide for additional losses unless the Company has guaranteed obligations of the venture or is otherwise committed to providing further financial support for the investee. If the venture subsequently generates income, the Company only recognizes its share of such income to the extent it exceeds its share of previously unrecognized losses. | ||
On a periodic basis, management assesses whether there are any indicators that the value of the Company’s investments in unconsolidated joint ventures may be impaired. An investment is impaired only if management’s estimate of the value of the investment is less than the carrying value of the investment, and such decline in value is deemed to be other than temporary. To the extent impairment has occurred, the loss shall be measured as the excess of the carrying amount of the investment over the value of the investment. The Company’s estimates of value for each investment (particularly in commercial real estate joint ventures) are based on a number of assumptions that are subject to economic and market uncertainties including, among others, demand for space, competition for tenants, changes in market rental rates, and operating costs. As these factors are difficult to predict and are subject to future events that may alter management’s assumptions, the values estimated by management in its impairment analyses may not be realized, and actual losses or impairment may be realized in the future. | ||
Valuation Hierarchy | Valuation Hierarchy | |
In accordance with the authoritative guidance on fair value measurements and disclosures under ASC 820, Fair Value Measurement, the methodologies used for valuing such instruments have been categorized into three broad levels as follows: | ||
Level 1 - Quoted prices in active markets for identical instruments. | ||
Level 2 - Valuations based principally on other observable market parameters, including: | ||
• | Quoted prices in active markets for similar instruments, | |
• | Quoted prices in less active or inactive markets for identical or similar instruments, | |
• | Other observable inputs (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates), and | |
• | Market corroborated inputs (derived principally from or corroborated by observable market data). | |
Level 3 - Valuations based significantly on unobservable inputs. | ||
• | Valuations based on third party indications (broker quotes, counterparty quotes or pricing services) which were, in turn, based significantly on unobservable inputs or were otherwise not supportable as Level 2 valuations, and | |
• | Valuations based on internal models with significant unobservable inputs. | |
Pursuant to the authoritative guidance, these levels form a hierarchy. The Company follows this hierarchy for its financial instruments measured at fair value on a recurring basis. The classifications are based on the lowest level of input that is significant to the fair value measurement. | ||
It is the Company’s policy to determine when transfers between levels of the fair value hierarchy are deemed to have occurred at the end of the reporting period. | ||
Valuation of Financial Instruments | ||
Considerable judgment is necessary to interpret market data and develop estimated fair values. Accordingly, fair values are not necessarily indicative of the amounts the Company could realize upon disposition of the financial instruments. Financial instruments with readily available active quoted prices, or for which fair value can be measured from actively quoted prices, generally will have a higher degree of pricing observability and will therefore require a lesser degree of judgment to be utilized in measuring fair value. Conversely, financial instruments rarely traded or not quoted will generally have less, or no, pricing observability and will require a higher degree of judgment in measuring fair value. Pricing observability is generally affected by such items as the type of financial instrument, whether the financial instrument is new to the market and not yet established, the characteristics specific to the transaction and overall market conditions. The use of different market assumptions and/or estimation methodologies may have a material effect on estimated fair value amounts | ||
Tuebor/Federal Home Loan Bank Membership | Tuebor/Federal Home Loan Bank Membership | |
Tuebor Captive Insurance Company LLC (“Tuebor”), a wholly-owned subsidiary of the Company, was licensed in Michigan and approved to operate as a captive insurance company as well as being approved to become a member of the Federal Home Loan Bank (“FHLB”), with membership finalized with the purchase of stock, in the FHLB on July 11, 2012. That approval allowed Tuebor to purchase capital stock in the FHLB, the prerequisite to obtaining financing on eligible collateral. | ||
Deferred Financing Costs | Deferred Financing Costs | |
Fees and expenses incurred in connection with financing transactions are capitalized within other assets in the combined consolidated balance sheets and amortized over the term of the financing by applying the effective interest rate method. The amortization is reflected in interest expense. | ||
Derivative Instruments | Derivative Instruments | |
In the normal course of business, the Company is exposed to the effect of interest rate changes and may undertake a strategy to limit these risks through the use of derivatives. To address exposure to interest rates, the Company uses derivatives primarily to economically hedge the fair value variability of fixed rate assets caused by interest rate fluctuations and overall portfolio market risk. The Company may use a variety of derivative instruments that are considered conventional, or “plain vanilla” derivatives, including interest rate swaps, futures, caps, collars and floors, to manage interest rate risk. | ||
To determine the fair value of derivative instruments, the Company uses a variety of methods and assumptions that are based on market conditions and risks existing at each balance sheet date. Standard market conventions and techniques such as discounted cash flow analysis, option-pricing models, and termination cost may be used to determine fair value. All such methods of measuring fair value for derivative instruments result in an estimate of fair value, and such value may never actually be realized. | ||
The Company recognizes all derivatives on the combined consolidated balance sheets at fair value. The Company does not generally designate derivatives as hedges to qualify for hedge accounting for financial reporting purposes and therefore any net payments under, or fluctuations in the fair value of, these derivatives have been recognized currently in net result from derivative transactions in the accompanying combined consolidated statements of income. The Company records derivative asset and liability positions on a gross basis with any collateral posted with or received from counterparties recorded separately on the Company’s combined consolidated balance sheets. | ||
Repurchase Agreements | Repurchase Agreements | |
The Company finances certain of its mortgage loan receivables held for sale, a portion of its mortgage loan receivables held for investment and the majority of its real estate securities using repurchase agreements. Under a repurchase agreement, an asset is sold to a counterparty to be repurchased at a future date at a predetermined price, which represents the original sales price plus interest. The Company accounts for these repurchase agreements as financings under ASC 860-10-40. Under this standard, for these transactions to be treated as financings, they must be separate transactions and not linked. If the Company finances the purchase of its mortgage loan receivables held for sale, mortgage loan receivables held for investment and real estate securities with repurchase agreements with the same counterparty from which the securities are purchased and both transactions are entered into contemporaneously or in contemplation of each other, the transactions are presumed under GAAP to be part of the same arrangement, or a “Linked Transaction,” unless certain criteria are met. | ||
Deferred Tax Asset and Amount Due Pursuant to Tax Receivable Agreement | Deferred Tax Asset and Amount Due Pursuant to Tax Receivable Agreement | |
In conjunction with the IPO, the Company is treated for U.S. federal income tax purposes as having directly purchased LP Units in LCFH from the existing unitholders. In the future, additional Series REIT LP Units, LC TRS I Shares (or Series TRS LP Units in lieu of such LC TRS I Shares) and shares of our Class B common stock may be exchanged for shares of Class A common stock in the Company. The initial purchase and these future exchanges are expected to result in an increase in the tax basis of LCFH’s assets attributable to the Company’s interest in LCFH. These increases in the tax basis of LCFH’s assets attributable to the Company’s interest in LCFH would not have been available but for this initial purchase and future exchanges. Such increases in tax basis are likely to increase (for tax purposes) depreciation and amortization deductions and therefore reduce the amount of income tax the Company would otherwise be required to pay in the future. The Tax Receivable Agreement provides for the payment by the Company to its Continuing LCFH Limited Partners (the “TRA Members”) of 85% of the amount of cash savings in U.S. federal, state and local income tax or franchise tax that the Company actually realizes as a result of (a) the increase in tax basis attributable to exchanges by the TRA Members and (b) tax benefits related to imputed interest deemed to be paid by the Company as a result of this Tax Receivable Agreement. The Company expects to benefit from the remaining 15% of cash savings, if any, in income tax that it realizes and record any such estimated tax benefits as an increase to additional paid-in-capital. For purposes of the Tax Receivable Agreement, cash savings in income tax will be computed by comparing the Company’s actual income tax liability to the amount of such taxes that it would have been required to pay had there been no increase to the tax basis of the assets of LCFH as a result of the exchanges and had it not entered into the Tax Receivable Agreement. The term of the Tax Receivable Agreement commenced upon consummation of the IPO and will continue until all such tax benefits have been utilized or expired, unless the Company exercises its right to terminate the Tax Receivable Agreement for an amount based on an agreed value of payments remaining to be made under the agreement. The Company has recorded the estimated tax benefits related to the increase in tax basis and imputed interest as a result of the future exchanges described above as a deferred tax asset in the combined consolidated statements of financial condition. The amount due to the TRA Members related to the Tax Receivable Agreement as a result of the future exchanges described above is recorded as amount due pursuant to Tax Receivable Agreement in the combined consolidated statements of financial condition. | ||
The Tax Receivable Agreement was amended and restated in connection with our REIT Election, effective as of December 31, 2014 (the “TRA Amendment”), in order to preserve a portion of the potential tax benefits currently existing under the Tax Receivable Agreement that would otherwise be reduced in connection with our REIT Election. The TRA Amendment provides that, in lieu of the existing tax benefit payments under the Tax Receivable Agreement for the 2015 taxable year and beyond, LC TRS I LLC (“LC TRS I”) will pay to the TRA Members 85% of the amount of the benefits, if any, that LC TRS I realizes or under certain circumstances (such as a change of control) is deemed to realize as a result of (i) the increases in tax basis resulting from the TRS Exchanges by the TRA Members, (ii) any incremental tax basis adjustments attributable to payments made pursuant to the TRA Amendment, and (iii) any deemed interest deductions arising from payments made by LC TRS I under the TRA Amendment. Under the TRA Amendment, LC TRS I expects to benefit from the remaining 15% of cash savings in income tax that it realizes, which is in the same proportion realized by the Company under the existing Tax Receivable Agreement. The purpose of the TRA Amendment was to preserve the benefits of the Tax Receivable Agreement to the extent possible in a REIT, although, as a result, the amount of payments made to the TRA Members under the TRA Amendment is expected to be less than would be made under the prior Tax Receivable Agreement. The TRA Amendment continues to share such benefits in the same proportions and otherwise has substantially the same terms and provisions as the prior Tax Receivable Agreement. | ||
Income Taxes | Income Taxes | |
The Company accounts for income taxes in accordance with ASC Topic 740 - Income Taxes (“ASC 740”), which requires the recognition of tax benefits or expenses on the temporary differences between financial reporting and tax bases of assets and liabilities. The Company’s operations were historically organized as a limited liability limited partnership which elected to be treated as a partnership for income tax purposes. Accordingly, the Company’s income was not subject to U.S. federal income taxes. Taxes related to income earned by this entity represented obligations of the individual partners and were not reflected in the combined consolidated financial statements. Instead, income taxes shown on the Company’s historical consolidated financial statements were attributable to the New York City Unincorporated Business Tax. After the Company’s IPO, the income from operations attributable to the Company is taxed at the prevailing federal, state and local and foreign income tax rates. Income from operations of LCFH remains taxable to its limited partners. | ||
The Company determines whether a tax position of the Company is more likely than not to be sustained upon examination by the applicable taxing authority, including resolution of any related appeals or litigation processes, based on the technical merits of the position. The tax benefit to be recognized is measured as the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement which could result in the Company recording a tax liability that would reduce shareholders’ equity. | ||
The Company’s policy is to classify interest and penalties associated with underpayment of federal and state income taxes, if any, as a component of general and administrative expense on its combined consolidated statements of income. For the year ended December 31, 2014 and 2013, the Company did not have any interest or penalties associated with the underpayment of any income taxes. The last three tax years remain open and subject to examination by tax jurisdictions. | ||
Interest Income | Interest Income | |
Interest income is accrued based on the outstanding principal amount and contractual terms of the Company’s loans and securities. Discounts or premiums associated with the purchase of loans and investment securities are amortized or accreted into interest income as a yield adjustment on the effective interest method, based on expected cash flows through the expected recovery period of the investment. On at least a quarterly basis, the Company reviews and, if appropriate, makes adjustments to its cash flow projections. The Company has historically collected, and expects to continue to collect, all contractual amounts due on its originated loans. As a result, the Company does not adjust the projected cash flows to reflect anticipated credit losses for these loans. If the performance of a credit deteriorated security is more favorable than forecasted, the Company will generally accrete more credit discount into interest income than initially or previously expected. These adjustments are made prospectively beginning in the period subsequent to the determination that a favorable change in performance is projected. Conversely, if the performance of a credit deteriorated security is less favorable than forecasted, an other-than-temporary impairment may be taken, and the amount of discount accreted into income will generally be less than previously expected. | ||
The effective yield on securities is based on the projected cash flows from each security, which is estimated based on the Company’s observation of the then current information and events and will include assumptions related to interest rates, prepayment rates and the timing and amount of credit losses. On at least a quarterly basis, the Company reviews and, if appropriate, makes adjustments to its cash flow projections based on input and analysis received from external sources, internal models, and its judgment about interest rates, prepayment rates, the timing and amount of credit losses (if applicable), and other factors. Changes in cash flows from those originally projected, or from those estimated at the last evaluation, may result in a prospective change in the yield/interest income recognized on such securities. Actual maturities of the securities are affected by the contractual lives of the associated mortgage collateral, periodic payments of scheduled principal, and repayments of principal. Therefore, actual maturities of the securities will generally be shorter than stated contractual maturities. | ||
For loans classified as held for investment and that the Company has not elected to record at fair value under Financial Accounting Standards Board (“FASB”) ASC 825, origination fees and direct loan origination costs are recognized in interest income over the loan term as a yield adjustment using the effective interest method. For loans classified as held for sale and that the Company has not elected to record at fair value under FASB ASC 825, origination fees and direct loan origination costs are deferred adjusting the basis of the loan and are realized as a portion of the gain/(loss) on sale of loans when sold. As of December 31, 2014, the Company did not hold any loans for which the fair value option was elected. | ||
For our CMBS rated below AA, which represents approximately 6.1% of the Company’s CMBS portfolio as of December 31, 2014, cash flows from a security are estimated by applying assumptions used to determine the fair value of such security and the excess of the future cash flows over the investment are recognized as interest income under the effective yield method. The Company will review and, if appropriate, make adjustments to, its cash flow projections at least quarterly and monitor these projections based on input and analysis received from external sources and its judgment about interest rates, prepayment rates, the timing and amount of credit losses and other factors. Changes in cash flows from those originally projected, or from those estimated at the last evaluation, may result in a prospective change in interest income recognized and amortization of any premium or discount on, or the carrying value of, such securities. | ||
For investments purchased with evidence of deterioration of credit quality for which it is probable, at acquisition, that the Company will be unable to collect all contractually required payments receivable, the Company will apply the provisions of ASC 310-30, “Loans and Debt Securities Acquired with Deteriorated Credit Quality.” ASC 310-30 addresses accounting for differences between contractual cash flows and cash flows expected to be collected from an investor’s initial investment in loans or debt securities (loans) acquired in a transfer if those differences are attributable, at least in part, to credit quality. ASC 310-30 limits the yield that may be accreted (accretable yield) to the excess of the investor’s estimate of undiscounted expected principal, interest and other cash flows (cash flows expected at acquisition to be collected) over the investor’s initial investment in the loan. ASC 310-30 requires that the excess of contractual cash flows over cash flows expected to be collected (nonaccretable difference) not be recognized as an adjustment of yield, loss accrual or valuation allowance. Subsequent increases in cash flows expected to be collected generally should be recognized prospectively through adjustment of the loan’s yield over its remaining life. Decreases in cash flows expected to be collected should be recognized as impairment. | ||
Recognition of Operating Lease Income and Tenant Recoveries | Recognition of Operating Lease Income and Tenant Recoveries | |
Operating lease income is recognized on a straight-line basis over the respective lease terms. We classify amounts currently recognized as income, and expected to be received in later years, as assets in other assets in the accompanying combined consolidated balance sheets. Amounts received currently, but recognized as income in future years, are classified in other liabilities in the accompanying combined consolidated balance sheets. We commence recognition of operating lease income at the date the property is ready for its intended use and the tenant takes possession of or controls the physical use of the property. | ||
Tenant recoveries related to reimbursement of real estate taxes, insurance, utilities, repairs and maintenance, and other operating expenses are recognized as revenue in the period during which the applicable expenses are incurred. | ||
Sales of Loans | Sales of Loans | |
We recognize gains on sale of loans net of any costs related to that sale. | ||
Transfer of Financial Assets | Transfer of Financial Assets | |
For a transfer of financial assets to be considered a sale, the transfer must meet the sale criteria of ASC 860 under which the Company must surrender control over the transferred assets which must qualify as recognized financial assets at the time of transfer. The assets must be isolated from the Company, even in bankruptcy or other receivership; the purchaser must have the right to pledge or sell the assets transferred and the Company may not have an option or obligation to reacquire the assets. If the sale criteria are not met, the transfer is considered to be a secured borrowing, the assets remain on the Company’s combined consolidated balance sheets and the sale proceeds are recognized as a liability. | ||
Debt Issued | Debt Issued | |
From time to time, a wholly-owned subsidiary of the Company will originate a loan (each, an “Intercompany Loan,” and collectively, “Intercompany Loans”) to another wholly-owned subsidiary of the Company to finance the purchase of real estate. The mortgage loan receivable and the related obligation do not appear in the Company’s combined consolidated balance sheets as they are eliminated upon consolidation. Once the Company issues (sells) an Intercompany Loan to a third party securitization trust (for cash), the related mortgage note is held for the first time by a creditor external to the Company. The accounting for the securitization of an Intercompany Loan—a financial instrument that has never been recognized in our combined consolidated financial statements as an asset—is considered a financing transaction under ASC 470, Debt, and ASC 835, Interest. | ||
The periodic securitization of the Company’s mortgage loans involves both Intercompany Loans and mortgage loans made to third parties with the latter recognized as financial assets in the Company’s combined consolidated financial statements as part of an integrated transaction. The Company receives aggregate proceeds equal to the transaction’s all-in securitization value and sales price. In accordance with the guidance under ASC 835, when initially measuring the obligation arising from an Intercompany Loan’s securitization, the Company allocates the proceeds from each securitization transaction between the third-party loans and each Intercompany Loan so securitized on a relative fair value basis determined in accordance with the guidance in ASC 820, Fair Value Measurement. The difference between the amount allocated to each Intercompany Loan and the loan’s face amount is recorded as a premium or discount, and is amortized, using the effective interest method, as a reduction or increase in reported interest expense, respectively. | ||
Fee Income | Fee Income | |
Fee income is comprised primarily of income from the management of our institutional partnership and managed accounts as well as from origination fees, exit fees and other fees on the loans we originate and in which we invest. | ||
Fee Expense | Fee Expense | |
Fee expense is comprised primarily of fees related to financing arrangements, transaction related costs and management fees incurred. In addition, fees paid under a loan referral agreement with Meridian Capital Group LLC (“Meridian”), as disclosed in Note 16, are reflected as fee expense. The agreement provides for the payment of referral fees for loans originated pursuant to a formula based on the Company’s net profit on such referred loan, as defined in the agreement, payable annually in arrears. While the arrangement gives rise to a potential conflict of interest, full disclosure is given and the borrower waives the conflict in writing. | ||
Stock Based Compensation Plan | Stock Based Compensation Plan | |
The Company accounts for its equity-based compensation awards using the fair value method, which requires an estimate of fair value of the award at the time of grant, and generally are time-based awards. For time-based awards the Company recognizes compensation expense over the substantive vesting period, on a straight-line basis. | ||
Out-of-Period Adjustment and Reclassifications | Out-of-Period Adjustment | |
The Company identified certain computational errors in its calculation of depreciation and amortization relating to real estate and the related lease intangibles. These errors include using average lives for groups of properties (rather than the property-specific lives) and beginning depreciation/amortization upon the following full month rather than at the date of the acquisition. We concluded that the cumulative difference was not material, individually or in the aggregate to the Company’s operations in either the current period or any historical periods. Accordingly, in fiscal 2014, we recorded an out-of-period adjustment of approximately $1.2 million. | ||
Reclassifications | ||
During the year ended December 31, 2014, the Company made certain classification changes in its combined consolidated statements of cash flows to more appropriately reflect their nature. Specifically, the Company (i) reclassified the reduction (addition) of cash collateral held by broker for derivatives from net cash provided by (used in) operating activities to net cash provided by (used in) investing activities and (ii) reclassified purchase of derivative instruments from net cash provided by (used in) financing activities to net cash provided by (used in) investing activities. | ||
Recently Issued and Adopted Accounting Pronouncements | Recently Issued and Adopted Accounting Pronouncements | |
In February 2015, the Federal Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis (“ASU 2015-02”). This ASU makes changes to the VIE model and voting interest ("VOE") model consolidation guidance. The main provisions of the ASU include the following: i) adding a requirement that limited partnerships and similar legal entities must provide partners with either substantive kick-out rights or substantive participating rights over the general partner to qualify as a VOE rather than a VIE; ii) eliminating the presumption that the general partner should consolidate a limited partnership; iii) eliminating certain conditions that need to be met when evaluating whether fees paid to a decision maker or service provider are considered a variable interest; iv) excluding certain fees paid to decision makers or service providers when evaluating which party is the primary beneficiary of a VIE; and v) revising how related parties are evaluated under the VIE guidance. Lastly, the ASU eliminates the indefinite deferral of FAS 167, which allowed reporting entities with interests in certain investment funds to follow previous guidance in FIN 46 (R). However, the ASU permanently exempts reporting entities from consolidating registered money market funds that operate in accordance with Rule 2a-7 of the Investment Company Act of 1940. The ASU is effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. Entities may apply this ASU either using a modified retrospective approach by recording a cumulative-effect adjustment to equity as of the beginning period of adoption or retrospectively to all prior periods presented in the financial statements. Early adoption is also permitted provided that the ASU is applied from the beginning of the fiscal year of adoption. The Company anticipates adopting this update in the quarter ended March 31, 2016 and is currently evaluating the impact of the adoption on its financial statements. | ||
In August 2014, FASB issued ASU 2014-15, Presentation of Financial Statements — Going Concern (Subtopic 205-40): Disclosure of Uncertainties About an Entity’s Ability to Continue as a Going Concern (“ASU 2014-15”). The guidance in ASU 2014-15 sets forth management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern as well as required disclosures. ASU 2014-15 indicates that, when preparing interim and annual financial statements, management should evaluate whether conditions or events, in the aggregate, raise substantial doubt about the entity’s ability to continue as a going concern for one year from the date the financial statements are issued or are available to be issued. This evaluation should include consideration of conditions and events that are either known or are reasonably knowable at the date the financial statements are issued or are available to be issued, and, if applicable, whether it is probable that management’s plans to address the substantial doubt will be implemented and, if so, whether it is probable that the plans will alleviate the substantial doubt. ASU 2014-15 is effective for annual periods ending after December 15, 2016, and interim periods and annual periods thereafter. Early application is permitted. The Company anticipates adopting this update in the quarter ended March 31, 2017 and does not expect the adoption to have a material impact on the Company’s combined consolidated financial statements. | ||
In August 2014, FASB issued ASU 2014-14, Receivables-Trouble Debt Restructurings by Creditor (ASC Subtopic 310-40): Classification of Certain Government-Guaranteed Mortgage Loans Upon Foreclosure (“ASU 2014-14”). The guidance in ASU 2014-14 requires that a mortgage loan be derecognized and that a separate other receivable be recognized upon foreclosure if the following conditions are met: (1) the loan has a government guarantee that is not separable from the loan before foreclosure; (2) at the time of foreclosure, the creditor has the intent to convey the real estate property to the guarantor and make a claim on the guarantee, and the creditor has the ability to recover under that claim; and (3) at the time of foreclosure, any amount of the claim that is determined on the basis of the fair value of the real estate is fixed. Upon foreclosure, the separate other receivable should be measured based on the amount of the loan balance (principal and interest) expected to be recovered from the guarantor. The guidance is effective for fiscal years beginning after December 15, 2014, and the interim periods within those fiscal years. An entity should adopt the amendments in ASU 2014-14 using either a prospective transition method or a modified retrospective transition method. Early adoption, including adoption in an interim period, is permitted if the entity already has adopted ASU 2014-4. The Company anticipates adopting this update in the quarter ended March 31, 2015 and does not expect the adoption to have a material effect on the Company’s combined consolidated financial condition, results of operations or cash flows. | ||
In August 2014, FASB issued ASU 2014-13, Consolidation (Topic 810): Measuring the Financial Assets and the Financial Liabilities of a Consolidated Collateralized Financing Entity (“ASU 2014-13”). For entities that consolidate a collateralized financing entity within the scope of this update, an option to elect to measure the financial assets and the financial liabilities of that collateralized financing entity using either the measurement alternative included in ASU 2014-13 or Topic 820 on fair value measurement is provided. The guidance is effective for fiscal years beginning after December 15, 2015, and the interim periods within those fiscal years. Early adoption is permitted as of the beginning of an annual period. The Company anticipates adopting this update in the quarter ended March 31, 2016 and does not expect the adoption to have a material effect on the Company’s combined consolidated financial condition, results of operations or cash flows. | ||
In June 2014, FASB issued ASU 2014-12, Compensation-Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period, a consensus of the FASB Emerging Issues Task Force (“ASU 2014-12”). ASU 2014-12 requires that a performance target that affects vesting of share-based payment awards and that could be achieved after the requisite service period be treated as a performance condition. Compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the periods for which the requisite service has already been rendered. If the performance target becomes likely to be achieved before the end of the requisite service period, the remaining unrecognized compensation cost should be recognized prospectively over the remaining requisite service period. The total amount of compensation cost recognized during and after the requisite service period should reflect the number of awards that are expected to vest and should be adjusted to reflect those awards that ultimately vest. The requisite service period ends when the employee can cease rendering service and still be eligible to vest in the award if the performance target is achieved. ASU 2014-12 is effective for all entities for interim and annual periods beginning after December 15, 2015, with early adoption permitted. An entity may apply the amendments in ASU 2014-12 either (i) prospectively to all awards granted or modified after the effective date or (ii) retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements and to all new or modified awards thereafter. The Company anticipates adopting this update in the quarter ended March 31, 2016 and does not expect the adoption to have a material impact on the Company’s combined consolidated financial condition or results of operations. | ||
In June 2014, FASB issued ASU 2014-11, Repurchase-to-Maturity Transactions, Repurchase Financings and Disclosures (“ASU 2014-11”). The pronouncement changes the accounting for repurchase-to-maturity transactions and linked repurchase financings to secured borrowing accounting, which is consistent with the accounting for other repurchase agreements. The pronouncement also requires two new disclosures. The first disclosure requires an entity to disclose information on transfers accounted for as sales in transactions that are economically similar to repurchase agreements. The second disclosure provides increased transparency about the types of collateral pledged in repurchase agreements and similar transactions accounted for as secured borrowings. The pronouncement is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. Early adoption is not permitted. The adoption of this pronouncement is not expected to have a material impact on the Company’s combined consolidated financial condition or results of operations. | ||
In May 2014, FASB issued ASU 2014-9, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-9”). ASU 2014-9 is a comprehensive new revenue recognition model requiring a company to recognize revenue to depict the transfer of goods or services to a customer at an amount reflecting the consideration it expects to receive in exchange for those goods or services. In adopting ASU 2014-9, companies may use either a full retrospective or a modified retrospective approach. Additionally, this guidance requires improved disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. ASU 2014-9 is effective for the first interim period within annual reporting periods beginning after December 15, 2016, and early adoption is not permitted. The Company anticipates adopting this update in the quarter ended March 31, 2017 and is currently in the process of evaluating the impact the adoption of ASU 2014-9 will have on the Company’s combined consolidated financial condition or results of operations. | ||
In April 2014, FASB issued ASU 2014-8, Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity (“ASU 2014-8”). The objective of this update is to change the criteria for determining which disposals can be presented as discontinued operations and to modify related disclosure requirements. Under this guidance, a disposal of a component of an entity or a group of components of an entity is required to be reported in discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results. This update requires expanded disclosures for discontinued operations reporting and is effective for annual and interim periods beginning after December 15, 2014 with early adoption permitted for disposals that have not been reported in financial statements previously issued or available for issuance. The Company adopted this guidance during the quarter ended March 31, 2014. | ||
In July 2013, FASB issued ASU 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (“ASU 2013-11”). The objective of this update is to eliminate the diversity in practice in the presentation of unrecognized tax benefits when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. Under this guidance, an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except in certain circumstances. This update does not require any new recurring disclosures and is effective for annual and interim periods beginning after December 15, 2013. This guidance became effective for the Company beginning January 1, 2014. The adoption of this standard did not have a material impact on its combined consolidated financial statements or footnote disclosures. | ||
In February 2013, FASB issued Accounting Standards Update (“ASU”) 2013-4, Liabilities (Topic 405): Obligations Resulting from Joint and Several Liability Arrangements for which the Total Amount of the Obligation Is Fixed at the Reporting Date (ASU 2013-4”). ASU 2013-4 addresses the recognition, measurement, and disclosure of certain obligations resulting from joint and several liability arrangements for which the total amount of the obligation is fixed at the reporting date, including debt arrangements, other contractual obligations, and settled litigation and judicial rulings. U.S. GAAP does not currently include specific guidance on accounting for such obligations with joint and several liability which has resulted in diversity in practice. The ASU requires an entity to measure these obligations as the sum of the amount the reporting entity agreed to pay on the basis of its arrangement among its co-obligors and any additional amount the reporting entity expects to pay on behalf of its co-obligors. The ASU also requires an entity to disclose the nature and amount of the obligation as well as other information about those obligations. The ASU is to be applied retrospectively to all prior periods presented for those obligations resulting from joint and several liability arrangements within the updates scope that exist within the Company’s statement of financial position at the beginning of the year of adoption. This guidance became effective for the Company beginning January 1, 2014. The adoption of this standard did not have a material impact on its combined consolidated financial statements or footnote disclosures. |
SIGNIFICANT_ACCOUNTING_POLICIE2
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Accounting Policies [Abstract] | |||||||||||||
Reclassified Previously Reported Cash Flow Information | The Company has reclassified previously reported cash flow information to conform to the current classification as follows ($ in thousands): | ||||||||||||
As Originally Reported | Reclassification | As Reclassified | |||||||||||
Year Ended December 31, 2013 | |||||||||||||
Net cash provided by (used in) operating activities | $ | 466,733 | $ | 10,249 | $ | 476,982 | |||||||
Net cash provided by (used in) investing activities | (1,073,500 | ) | (10,269 | ) | (1,083,769 | ) | |||||||
Net cash provided by (used in) financing activities | 640,330 | 20 | 640,350 | ||||||||||
Year Ended December 31, 2012 | |||||||||||||
Net cash provided by (used in) operating activities | $ | (111,367 | ) | $ | (4,640 | ) | $ | (116,007 | ) | ||||
Net cash provided by (used in) investing activities | 283,692 | 4,414 | 288,106 | ||||||||||
Net cash provided by (used in) financing activities | (211,498 | ) | 226 | (211,272 | ) | ||||||||
MORTGAGE_LOAN_RECEIVABLES_Tabl
MORTGAGE LOAN RECEIVABLES (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Mortgage Loans on Real Estate [Abstract] | ||||||||||||||||
Schedule of mortgage loan receivables | December 31, 2014 | |||||||||||||||
Outstanding | Carrying | Weighted | Remaining | |||||||||||||
Face Amount | Value | Average | Maturity | |||||||||||||
Yield (1) | (years) | |||||||||||||||
Mortgage loan receivables held for investment, at amortized cost | $ | 1,536,922,814 | $ | 1,524,153,375 | 7.33 | % | 1.96 | |||||||||
Provision for loan losses | N/A | (3,100,000 | ) | |||||||||||||
Total mortgage loan receivables held for investment, at amortized cost | 1,536,922,814 | 1,521,053,375 | ||||||||||||||
Mortgage loan receivables held for sale | 417,954,757 | 417,954,757 | 4.31 | % | 9.72 | |||||||||||
Total | $ | 1,954,877,571 | $ | 1,939,008,132 | ||||||||||||
(1) December 31, 2014 yields are used to calculate weighted average yield for floating rate loans. | ||||||||||||||||
As of December 31, 2014, $231,938,111, or 15.2%, of the carrying value of our mortgage loan receivables held for investment, at amortized cost, were at fixed interest rates and $1,292,215,264, or 84.8%, of the carrying value of our mortgage loan receivables held for investment, at amortized cost, were at variable interest rates, linked to LIBOR, some of which include interest rate floors. As of December 31, 2014, $417,954,757, or 100.0%, of the carrying value of our mortgage loan receivables held for sale, were at fixed interest rates. | ||||||||||||||||
December 31, 2013 | ||||||||||||||||
Outstanding | Carrying | Weighted | Remaining | |||||||||||||
Face Amount | Value | Average | Maturity | |||||||||||||
Yield (1) | (years) | |||||||||||||||
Mortgage loan receivables held for investment, at amortized cost | $ | 549,573,788 | $ | 541,578,182 | 9.76 | % | 2.14 | |||||||||
Provision for loan losses | N/A | (2,500,000 | ) | |||||||||||||
Total mortgage loan receivables held for investment, at amortized cost | 549,573,788 | 539,078,182 | ||||||||||||||
Mortgage loan receivables held for sale | 440,774,789 | 440,489,789 | 5.47 | % | 9.62 | |||||||||||
Total | $ | 990,348,577 | $ | 979,567,971 | ||||||||||||
(1) December 31, 2013 yields are used to calculate weighted average yield for floating rate loans. | ||||||||||||||||
Summary of mortgage loan receivables by loan type | The following table summarizes mortgage loan receivables by loan type: | |||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||
Outstanding | Carrying | Outstanding | Carrying | |||||||||||||
Face Amount | Value | Face Amount | Value | |||||||||||||
Mortgage loan receivables held for sale | ||||||||||||||||
First mortgage loan | $ | 417,954,757 | $ | 417,954,757 | $ | 440,774,789 | $ | 440,489,789 | ||||||||
Total mortgage loan receivables held for sale | 417,954,757 | 417,954,757 | 440,774,789 | 440,489,789 | ||||||||||||
Mortgage loan receivables held for investment, at amortized cost | ||||||||||||||||
First mortgage loan | 1,373,476,221 | 1,361,754,632 | 420,672,555 | 413,564,066 | ||||||||||||
Mezzanine loan | 163,446,593 | 162,398,743 | 128,901,233 | 128,014,116 | ||||||||||||
Total mortgage loan receivables held for investment, at amortized cost | 1,536,922,814 | 1,524,153,375 | 549,573,788 | 541,578,182 | ||||||||||||
Provision for loan losses | N/A | (3,100,000 | ) | N/A | (2,500,000 | ) | ||||||||||
Total | $ | 1,954,877,571 | $ | 1,939,008,132 | $ | 990,348,577 | $ | 979,567,971 | ||||||||
Schedule of activity in loan portfolio | For the years ended December 31, 2014, 2013, and 2012 the activity in our loan portfolio was as follows: | |||||||||||||||
Mortgage loan | Mortgage loan | |||||||||||||||
receivables held | receivables held | |||||||||||||||
for investment, at | for sale | |||||||||||||||
amortized cost | ||||||||||||||||
Balance December 31, 2013 | $ | 539,078,182 | $ | 440,489,789 | ||||||||||||
Origination of mortgage loan receivables | 1,201,968,254 | 3,345,371,937 | ||||||||||||||
Repayment of mortgage loan receivables | (214,510,727 | ) | (1,293,262 | ) | ||||||||||||
Proceeds from sales of mortgage loan receivables | — | (3,523,688,310 | ) | |||||||||||||
Realized gain on sale of mortgage loan receivables | — | 145,274,603 | ||||||||||||||
Transfer between held for investment and held for sale | (11,800,000 | ) | 11,800,000 | |||||||||||||
Accretion/amortization of discount, premium and other fees | 6,917,666 | — | ||||||||||||||
Loan loss provision | (600,000 | ) | — | |||||||||||||
Balance December 31, 2014 | $ | 1,521,053,375 | $ | 417,954,757 | ||||||||||||
Mortgage loan | Mortgage loan | |||||||||||||||
receivables held | receivables held | |||||||||||||||
for investment, at | for sale | |||||||||||||||
amortized cost | ||||||||||||||||
Balance December 31, 2012 | $ | 326,318,550 | $ | 623,332,620 | ||||||||||||
Origination of mortgage loan receivables | 486,072,238 | 2,013,674,038 | ||||||||||||||
Repayment of mortgage loan receivables | (268,093,305 | ) | (5,840,419 | ) | ||||||||||||
Proceeds from sales of mortgage loan receivables | — | (2,345,704,987 | ) | |||||||||||||
Realized gain on sale of mortgage loan receivables | — | 146,708,264 | ||||||||||||||
Transfer between held for investment and held for sale | (8,320,273 | ) | 8,320,273 | |||||||||||||
Accretion/amortization of discount, premium and other fees | 3,700,972 | — | ||||||||||||||
Loan loss provision | (600,000 | ) | — | |||||||||||||
Balance December 31, 2013 | $ | 539,078,182 | $ | 440,489,789 | ||||||||||||
Mortgage loan | Mortgage loan | |||||||||||||||
receivables held | receivables held | |||||||||||||||
for investment, at | for sale | |||||||||||||||
amortized cost | ||||||||||||||||
Balance December 31, 2011 | $ | 255,196,384 | $ | 258,841,725 | ||||||||||||
Origination of mortgage loan receivables | 341,947,392 | 2,036,138,933 | ||||||||||||||
Repayment of mortgage loan receivables | (204,913,202 | ) | (75,654,634 | ) | ||||||||||||
Proceeds from sales of mortgage loan receivables | — | (1,815,995,772 | ) | |||||||||||||
Realized gain on sale of mortgage loan receivables | — | 151,661,150 | ||||||||||||||
Transfer between held for investment and held for sale | (68,080,932 | ) | 68,080,932 | |||||||||||||
Accretion/amortization of discount, premium and other fees | 2,617,741 | 260,286 | ||||||||||||||
Loan loss provision | (448,833 | ) | — | |||||||||||||
Balance December 31, 2012 | $ | 326,318,550 | $ | 623,332,620 | ||||||||||||
Schedule of provision for loan losses | Provision for Loan Losses | |||||||||||||||
Year Ended December 31, | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
Provision for loan losses at beginning of period | $ | 2,500,000 | $ | 1,900,000 | $ | 1,451,167 | ||||||||||
Provision for loan losses | 600,000 | 600,000 | 448,833 | |||||||||||||
Charge-offs | — | — | — | |||||||||||||
Provision for loan losses at end of period | $ | 3,100,000 | $ | 2,500,000 | $ | 1,900,000 | ||||||||||
REAL_ESTATE_SECURITIES_Tables
REAL ESTATE SECURITIES (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ||||||||||||||||||||||||||||||||||
Summary of securities which are classified as available-for-sale | The following is a summary of the Company’s securities at December 31, 2014 and 2013 ($ in thousands): | |||||||||||||||||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||||||||||||||||
Gross Unrealized | Weighted Average | |||||||||||||||||||||||||||||||||
Asset Type | Outstanding | Amortized | Gains | Losses | Carrying | # of | Rating (2) | Coupon % | Yield % | Remaining | ||||||||||||||||||||||||
Face Amount | Cost Basis | Value | Securities | Duration | ||||||||||||||||||||||||||||||
(years) | ||||||||||||||||||||||||||||||||||
CMBS | $ | 2,247,565 | $ | 2,277,995 | $ | 28,453 | $ | (1,038 | ) | $ | 2,305,410 | 145 | AAA | 3.31 | % | 2.6 | % | 4.23 | ||||||||||||||||
CMBS interest-only | 7,239,503 | -1 | 376,085 | 2,973 | (723 | ) | 378,335 | 41 | AAA | 1.04 | % | 4.88 | % | 3.45 | ||||||||||||||||||||
GNMA interest-only | 1,400,141 | -1 | 67,544 | 1,035 | (1,937 | ) | 66,642 | 34 | AA+ | 0.85 | % | 5.9 | % | 4.5 | ||||||||||||||||||||
GN construction securities | 27,538 | 28,178 | 503 | (275 | ) | 28,406 | 4 | AA+ | 3.89 | % | 3.56 | % | 9.42 | |||||||||||||||||||||
GN permanent securities | 36,232 | 36,515 | 258 | — | 36,773 | 11 | AA+ | 5.49 | % | 4.94 | % | 1.32 | ||||||||||||||||||||||
Total | $ | 10,950,979 | $ | 2,786,317 | $ | 33,222 | $ | (3,973 | ) | $ | 2,815,566 | |||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||||||||
Gross Unrealized | Weighted Average | |||||||||||||||||||||||||||||||||
Asset Type | Outstanding | Amortized | Gains | Losses | Carrying | # of | Rating (2) | Coupon % | Yield % | Remaining | ||||||||||||||||||||||||
Face Amount | Cost Basis | Value | Securities | Duration | ||||||||||||||||||||||||||||||
(years) | ||||||||||||||||||||||||||||||||||
CMBS | $ | 1,160,741 | $ | 1,156,230 | $ | 13,853 | $ | (5,147 | ) | $ | 1,164,936 | 101 | AAA | 4.24 | % | 4.08 | % | 4.88 | ||||||||||||||||
CMBS interest-only | 5,702,862 | -1 | 256,869 | 2,204 | (1,015 | ) | 258,058 | 21 | AAA | 1 | % | 4.19 | % | 3.38 | ||||||||||||||||||||
GNMA interest-only | 1,848,270 | -1 | 103,136 | 1,630 | (4,889 | ) | 99,877 | 36 | AA+ | 1.12 | % | 5.32 | % | 2.12 | ||||||||||||||||||||
FHLMC interest-only | 219,677 | -1 | 7,904 | 248 | — | 8,152 | 2 | AA+ | 0.95 | % | 5.21 | % | 3.04 | |||||||||||||||||||||
GN construction securities | 12,858 | 13,261 | 36 | (290 | ) | 13,007 | 8 | AA+ | 4.11 | % | 3.49 | % | 6.57 | |||||||||||||||||||||
GN permanent securities | 108,310 | 110,724 | 2,492 | — | 113,216 | 14 | AAA | 5.53 | % | 4.64 | % | 3.27 | ||||||||||||||||||||||
Total | $ | 9,052,718 | $ | 1,648,124 | $ | 20,463 | $ | (11,341 | ) | $ | 1,657,246 | |||||||||||||||||||||||
-1 | The amounts presented represent the principal amount of the mortgage loans outstanding in the pool in which the interest-only securities participate. | |||||||||||||||||||||||||||||||||
-2 | Represents the weighted average of the ratings of all securities in each asset type, expressed as an S&P equivalent rating. For each security rated by multiple rating agencies, the highest rating is used. Ratings provided were determined by third party rating agencies as of a particular date, may not be current and are subject to change (including the assignment of a “negative outlook” or “credit watch”) at any time. | |||||||||||||||||||||||||||||||||
Schedule of fair value of the Company's securities by remaining maturity based upon expected cash flows | The following is a breakdown of the carrying value of the Company’s securities by remaining maturity based upon expected cash flows at December 31, 2014 and 2013 ($ in thousands): | |||||||||||||||||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||||||||||||||||
Asset Type | Within 1 year | 1-5 years | 5-10 years | After 10 years | Total | |||||||||||||||||||||||||||||
CMBS | $ | 474,357 | $ | 814,702 | $ | 1,016,351 | $ | — | $ | 2,305,410 | ||||||||||||||||||||||||
CMBS interest-only | 391 | 370,993 | 6,951 | — | 378,335 | |||||||||||||||||||||||||||||
GNMA interest-only | 1,356 | 42,105 | 23,181 | — | 66,642 | |||||||||||||||||||||||||||||
GN construction securities | — | 507 | 5,183 | 22,716 | 28,406 | |||||||||||||||||||||||||||||
GN permanent securities | 25,915 | 9,334 | 1,524 | — | 36,773 | |||||||||||||||||||||||||||||
Total | $ | 502,019 | $ | 1,237,641 | $ | 1,053,190 | $ | 22,716 | $ | 2,815,566 | ||||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||||||||
Asset Type | Within 1 year | 1-5 years | 5-10 years | After 10 years | Total | |||||||||||||||||||||||||||||
CMBS | $ | 175,042 | $ | 390,116 | $ | 599,778 | $ | — | $ | 1,164,936 | ||||||||||||||||||||||||
CMBS interest-only | 7,482 | 250,576 | — | — | 258,058 | |||||||||||||||||||||||||||||
GNMA interest-only | 371 | 94,001 | 5,505 | — | 99,877 | |||||||||||||||||||||||||||||
FHLMC interest-only | — | 8,152 | — | — | 8,152 | |||||||||||||||||||||||||||||
GN construction securities | — | 3,280 | 9,727 | — | 13,007 | |||||||||||||||||||||||||||||
GN permanent securities | 62,605 | 15,080 | 28,841 | 6,690 | 113,216 | |||||||||||||||||||||||||||||
Total | $ | 245,500 | $ | 761,205 | $ | 643,851 | $ | 6,690 | $ | 1,657,246 | ||||||||||||||||||||||||
REAL_ESTATE_AND_RELATED_LEASE_1
REAL ESTATE AND RELATED LEASE INTANGIBLES, NET (Tables) | 12 Months Ended | ||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||
Real Estate [Abstract] | |||||||||||||||||||||||||||
Schedule of real estate properties acquired | During the year ended December 31, 2014, the Company acquired the following properties ($ in thousands): | ||||||||||||||||||||||||||
Purchase Price Allocation | |||||||||||||||||||||||||||
Acquisition Date | Type | Primary Location(s) | Purchase Price | Land | Building | Intangibles | Properties | Ownership Interest (1) | |||||||||||||||||||
Aug-14 | Retail | O'Fallon, IL | $ | 8,001 | $ | 2,488 | $ | 5,388 | $ | 125 | 1 | 100.00% | |||||||||||||||
Aug-14 | Retail | El Centro, CA | 4,277 | 569 | 3,133 | 575 | 1 | 100.00% | |||||||||||||||||||
Aug-14 | Office | Richmond, VA | 19,850 | 4,539 | 12,633 | 2,678 | 7 | 77.50% | -2 | ||||||||||||||||||
Aug-14 | Industrial | Conyers, GA | 32,530 | 876 | 27,396 | 4,258 | 1 | 100.00% | |||||||||||||||||||
Sep-14 | Office | St. Paul, MN | 62,340 | 9,415 | 33,682 | 19,243 | 4 | 97.00% | -2 | ||||||||||||||||||
Oct-14 | Retail | Bennett, CO | 3,522 | 470 | 2,503 | 549 | 1 | 100.00% | |||||||||||||||||||
Oct-14 | Retail | Memphis, TN | 5,310 | 1,986 | 2,800 | 524 | 1 | 100.00% | |||||||||||||||||||
Nov-14 | Retail | Ankemy, IA | 16,510 | 3,180 | 10,513 | 2,817 | 1 | 100.00% | |||||||||||||||||||
Nov-14 | Retail | Springfield, MO | 11,675 | 3,658 | 6,296 | 1,721 | 1 | 100.00% | |||||||||||||||||||
Nov-14 | Retail | Sheldon, IA | 4,300 | 633 | 3,053 | 614 | 1 | 100.00% | |||||||||||||||||||
Nov-14 | Retail | Cedar Rapid, IA | 11,000 | 1,569 | 7,553 | 1,878 | 1 | 100.00% | |||||||||||||||||||
Nov-14 | Retail | Fairfield, IA | 10,695 | 1,132 | 7,779 | 1,784 | 1 | 100.00% | |||||||||||||||||||
Nov-14 | Retail | Muscatine, IA | 7,150 | 1,060 | 6,636 | (546 | ) | 1 | 100.00% | ||||||||||||||||||
Nov-14 | Retail | Owatonna, MN | 9,969 | 1,398 | 7,125 | 1,446 | 1 | 100.00% | |||||||||||||||||||
Nov-14 | Retail | Bellport, NY | 18,100 | 3,601 | 12,465 | 2,034 | 1 | 100.00% | |||||||||||||||||||
Nov-14 | Retail | Woodland Park, CO | 3,969 | 668 | 2,681 | 620 | 1 | 100.00% | |||||||||||||||||||
Nov-14 | Retail | Evansville, IN | 9,000 | 1,788 | 6,348 | 864 | 1 | 100.00% | |||||||||||||||||||
Dec-14 | Retail | Plattsmouth, NE | 7,979 | 1,446 | 5,220 | 1,313 | 1 | 100.00% | |||||||||||||||||||
Dec-14 | Retail | Worthington, MN | 8,320 | 1,432 | 5,510 | 1,378 | 1 | 100.00% | |||||||||||||||||||
Totals | $ | 254,497 | $ | 41,908 | $ | 168,714 | $ | 43,875 | |||||||||||||||||||
(1) Properties were consolidated as of acquisition date. | |||||||||||||||||||||||||||
(2) See Note 12 for further information regarding noncontrolling interests. | |||||||||||||||||||||||||||
During the year ended December 31, 2013, the Company acquired the following properties ($ in thousands): | |||||||||||||||||||||||||||
Purchase Price Allocation | |||||||||||||||||||||||||||
Acquisition Date | Type | Primary Location(s) | Purchase Price | Land | Building | Intangibles | Properties | Ownership Interest (1) | |||||||||||||||||||
Jan-13 | Retail | Durant, OK | $ | 4,991 | $ | 594 | $ | 3,900 | $ | 497 | 1 | 100.00% | |||||||||||||||
Feb-13 | Office | Southfield, MI | 18,000 | 1,147 | 7,707 | 9,146 | 1 | 90.00% | -2 | ||||||||||||||||||
Jun-13 | Office | Richmond, VA | 134,999 | 15,904 | 99,375 | 19,720 | 14 | 77.50% | -2 | ||||||||||||||||||
Oct-13 | Office | Minneapolis, MN | 51,278 | 9,447 | 27,811 | 14,020 | 1 | 90.00% | -2 | ||||||||||||||||||
Nov-13 | Condominium | Miami, FL | 80,000 | 10,487 | 67,895 | 1,618 | 1 | -3 | 100.00% | ||||||||||||||||||
Totals | $ | 289,268 | $ | 37,579 | $ | 206,688 | $ | 45,001 | |||||||||||||||||||
(1) Properties were consolidated as of acquisition date. | |||||||||||||||||||||||||||
(2) See Note 12 for further information regarding noncontrolling interests. | |||||||||||||||||||||||||||
(3) The Company acquired the property as a multi-family building and subsequently converted the apartments into 324 condominium units. | |||||||||||||||||||||||||||
During the year ended December 31, 2012, the Company acquired the following properties ($ in thousands): | |||||||||||||||||||||||||||
Purchase Price Allocation | |||||||||||||||||||||||||||
Acquisition Date | Type | Primary Location(s) | Purchase Price | Land | Building | Intangibles | Properties | Ownership Interest (1) | |||||||||||||||||||
Feb-12 | Retail | Pittsfield, MA | 14,701 | 1,801 | 11,556 | 1,344 | 1 | 100.00% | |||||||||||||||||||
Mar-12 | Retail | Various | 29,674 | 6,465 | 23,209 | — | 5 | 100.00% | |||||||||||||||||||
Mar-12 | Retail | Various | 16,626 | 3,910 | 12,716 | — | 3 | 100.00% | |||||||||||||||||||
Mar-12 | Retail | Various | 23,109 | 2,875 | 20,234 | — | 4 | 100.00% | |||||||||||||||||||
Mar-12 | Retail | Millbrook, AL | 6,942 | 970 | 5,972 | — | 1 | 100.00% | |||||||||||||||||||
Apr-12 | Retail | Columbia, SC | 7,800 | 2,148 | 4,629 | 1,023 | 1 | 100.00% | |||||||||||||||||||
Apr-12 | Retail | Snellville, GA | 8,000 | 1,293 | 5,724 | 983 | 1 | 100.00% | |||||||||||||||||||
Apr-12 | Retail | Greenwood, AR | 5,147 | 1,038 | 3,415 | 694 | 1 | 100.00% | |||||||||||||||||||
Apr-12 | Retail | Middleburg, FL | 1,177 | 184 | 789 | 204 | 1 | 100.00% | |||||||||||||||||||
Apr-12 | Retail | Satsuma, FL | 1,092 | 79 | 821 | 192 | 1 | 100.00% | |||||||||||||||||||
May-12 | Retail | Greenwood, SC | 4,962 | 1,350 | 3,612 | — | 1 | 100.00% | |||||||||||||||||||
May-12 | Retail | Orange City, FL | 1,317 | 229 | 853 | 235 | 1 | 100.00% | |||||||||||||||||||
Jul-12 | Retail | Yulee, FL | 1,339 | 329 | 781 | 229 | 1 | 100.00% | |||||||||||||||||||
Aug-12 | Retail | DeLeon Springs, FL | 1,242 | 239 | 782 | 221 | 1 | 100.00% | |||||||||||||||||||
Sep-12 | Retail | North Dartsmouth, MA | 29,965 | 7,033 | 19,745 | 3,187 | 1 | 100.00% | |||||||||||||||||||
Sep-12 | Retail | Mooresville, NC | 17,643 | 2,615 | 12,462 | 2,566 | 1 | 100.00% | |||||||||||||||||||
Sep-12 | Retail | Saratoga Springs, NY | 20,223 | 748 | 13,937 | 5,538 | 1 | 100.00% | |||||||||||||||||||
Sep-12 | Retail | Sennett, NY | 7,475 | 1,147 | 4,480 | 1,848 | 1 | 100.00% | |||||||||||||||||||
Sep-12 | Retail | Tilton, NH | 7,256 | 1,476 | 4,888 | 892 | 1 | 100.00% | |||||||||||||||||||
Sep-12 | Retail | Vineland, NJ | 22,506 | 1,482 | 17,742 | 3,282 | 1 | 100.00% | |||||||||||||||||||
Sep-12 | Retail | Waldorf, MD | 18,803 | 4,933 | 11,684 | 2,186 | 1 | 100.00% | |||||||||||||||||||
Oct-12 | Retail | Jonesboro, AR | 8,400 | 2,615 | 4,460 | 1,325 | 1 | 100.00% | |||||||||||||||||||
Nov-12 | Retail | Mt. Juliet, TN | 9,100 | 2,739 | 4,854 | 1,507 | 1 | 100.00% | |||||||||||||||||||
Dec-12 | Retail | Wichita, KS | 7,200 | 1,187 | 4,850 | 1,163 | 1 | 100.00% | |||||||||||||||||||
Dec-12 | Retail | Abingdon, VA | 4,688 | 682 | 3,733 | 273 | 1 | 100.00% | |||||||||||||||||||
Dec-12 | Retail | Ooltewah, TN | 5,703 | 903 | 3,957 | 843 | 1 | 100.00% | |||||||||||||||||||
Dec-12 | Retail | Palmview, TX | 6,819 | 938 | 4,837 | 1,044 | 1 | 100.00% | |||||||||||||||||||
Dec-12 | Condominium | Las Vegas, NV | 119,000 | 4,900 | 114,100 | — | — | -3 | 98.80% | -2 | |||||||||||||||||
Dec-12 | Retail | Aiken, SC | 5,926 | 1,588 | 3,480 | 858 | 1 | 100.00% | |||||||||||||||||||
Dec-12 | Retail | Johnson City, TN | 5,262 | 916 | 3,607 | 739 | 1 | 100.00% | |||||||||||||||||||
Dec-12 | Retail | Mt. Airy, NC | 4,493 | 729 | 3,353 | 411 | 1 | 100.00% | |||||||||||||||||||
Dec-12 | Retail | Gallatin, TN | 5,061 | 1,724 | 2,616 | 721 | 1 | 100.00% | |||||||||||||||||||
Totals | $ | 428,651 | $ | 61,265 | $ | 333,878 | $ | 33,508 | |||||||||||||||||||
(1) Properties were consolidated as of acquisition date. | |||||||||||||||||||||||||||
(2) See Note 12 for further information regarding noncontrolling interests. | |||||||||||||||||||||||||||
(3) The Company acquired an inventory of 427 condominium units. | |||||||||||||||||||||||||||
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | The Company sold the following properties during the year ended December 31, 2014 ($ in thousands): | ||||||||||||||||||||||||||
Sales Date | Type | Primary Location(s) | Net Sales Proceeds | Net Book Value | Realized Gain/(Loss) | Properties | Units | ||||||||||||||||||||
May-14 | Retail | Tilton, NH | $ | 8,432 | $ | 6,743 | $ | 1,689 | 1 | 1 | |||||||||||||||||
Jun-14 | Office | Richmond, VA | 16,754 | 15,643 | 1,111 | 1 | 1 | ||||||||||||||||||||
Sep-14 | Retail | Yulee, FL | 1,436 | 1,246 | 190 | 1 | 1 | ||||||||||||||||||||
Sep-14 | Retail | Middleburg, FL | 1,262 | 1,077 | 185 | 1 | 1 | ||||||||||||||||||||
Sep-14 | Retail | Jonesboro, AR | 9,413 | 8,016 | 1,397 | 1 | 1 | ||||||||||||||||||||
Sep-14 | Retail | Mt. Juliet, TN | 10,168 | 8,724 | 1,444 | 1 | 1 | ||||||||||||||||||||
Various | Condominium | Las Vegas, NV | 52,976 | 33,925 | 19,051 | — | 113 | ||||||||||||||||||||
Various | Condominium | Miami, FL | 23,003 | 18,310 | 4,693 | — | 72 | ||||||||||||||||||||
Totals | $ | 123,444 | $ | 93,684 | $ | 29,760 | |||||||||||||||||||||
The Company sold the following properties during the year ended December 31, 2013 ($ in thousands): | |||||||||||||||||||||||||||
Sales Date | Type | Primary Location(s) | Net Sales Proceeds | Net Book Value | Realized Gain/(Loss) | Properties | Units | ||||||||||||||||||||
Various | Condominium | Las Vegas, NV | $ | 36,930 | $ | 23,365 | $ | 13,565 | — | 94 | |||||||||||||||||
The Company sold the following properties during the year ended December 31, 2012 ($ in thousands): | |||||||||||||||||||||||||||
Sales Date | Type | Primary Location(s) | Net Sales Proceeds | Net Book Value | Realized Gain/(Loss) | Properties | Units | ||||||||||||||||||||
Mar-12 | Retail | Various | $ | 30,304 | $ | 29,674 | $ | 630 | 5 | 5 | |||||||||||||||||
Mar-12 | Retail | Various | 16,944 | 16,626 | 318 | 3 | 3 | ||||||||||||||||||||
Mar-12 | Retail | Various | 23,635 | 23,109 | 526 | 4 | 4 | ||||||||||||||||||||
Nov-12 | Retail | Greenwood, SC | 4,763 | 4,962 | (199 | ) | 1 | 1 | |||||||||||||||||||
Totals | $ | 75,646 | $ | 74,371 | $ | 1,275 | |||||||||||||||||||||
Summary of income from the properties sold | The following table summarizes income from the properties sold during the years ended December 31, 2014, 2013 and 2012: | ||||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||
Operating lease income | $ | 3,377,079 | $ | 4,781,046 | $ | 787,211 | |||||||||||||||||||||
Tenant recoveries | 277,792 | 295,385 | — | ||||||||||||||||||||||||
Depreciation and amortization | (2,211,792 | ) | (1,803,878 | ) | (272,202 | ) | |||||||||||||||||||||
Income from properties sold | $ | 1,443,079 | $ | 3,272,553 | $ | 515,009 | |||||||||||||||||||||
Schedule of unaudited pro forma information | The unaudited pro forma combined consolidated financial information reflects the 2013 acquisition adjustments made to present financial results as though the acquisition of the properties occurred on January 1, 2012 and 2014 acquisition adjustments made to present financial results as though the acquisition of the properties occurred on January 1, 2013. This unaudited pro forma information may not be indicative of the results that actually would have occurred if these transactions had been in effect on the dates indicated, nor do they purport to represent our future results of operations. | ||||||||||||||||||||||||||
Year Ended December 31, 2014 | |||||||||||||||||||||||||||
Company | Acquisitions | Consolidated | |||||||||||||||||||||||||
Historical | Pro Forma | ||||||||||||||||||||||||||
Operating lease income | $ | 56,649,278 | $ | 20,079,460 | $ | 76,728,738 | |||||||||||||||||||||
Net income | 97,626,251 | 5,222,032 | 102,848,283 | ||||||||||||||||||||||||
Net (income) loss attributable to noncontrolling interest in consolidated joint ventures | 368,670 | 256,930 | 625,600 | ||||||||||||||||||||||||
Net (income) loss attributable to predecessor unitholders | 12,628,031 | — | 12,628,031 | ||||||||||||||||||||||||
Net (income) loss attributable to noncontrolling interest in operating partnership | (66,436,274 | ) | (2,684,691 | ) | (69,120,965 | ) | |||||||||||||||||||||
Net income attributable to Class A common shareholders | 44,186,678 | 2,794,271 | 46,980,949 | ||||||||||||||||||||||||
Year Ended December 31, 2013 | |||||||||||||||||||||||||||
Company | Acquisitions | Consolidated | |||||||||||||||||||||||||
Historical | Pro Forma | ||||||||||||||||||||||||||
Operating lease income | $ | 37,394,416 | $ | 34,184,780 | $ | 71,579,196 | |||||||||||||||||||||
Net income | 188,733,086 | 4,880,518 | 193,613,604 | ||||||||||||||||||||||||
Net (income) loss attributable to noncontrolling interest in consolidated joint ventures | 1,098,150 | (107,046 | ) | 991,104 | |||||||||||||||||||||||
Net income attributable to preferred and common unit holders | 189,831,236 | 95,469 | 189,926,705 | ||||||||||||||||||||||||
Year Ended December 31, 2012 | |||||||||||||||||||||||||||
Company | Acquisitions | Consolidated | |||||||||||||||||||||||||
Historical | Pro Forma | ||||||||||||||||||||||||||
Operating lease income | $ | 8,331,338 | $ | 34,387,525 | $ | 42,718,863 | |||||||||||||||||||||
Net income | 169,454,280 | 5,030,503 | 174,484,783 | ||||||||||||||||||||||||
Net (income) loss attributable to noncontrolling interest in consolidated joint ventures | 49,084 | (1,160,377 | ) | (1,111,293 | ) | ||||||||||||||||||||||
Net income attributable to preferred and common unit holders | 169,503,364 | 3,870,126 | 173,373,490 | ||||||||||||||||||||||||
Schedule of additional detail related to the entity's real estate portfolio | The following table presents additional detail related to our real estate portfolio: | ||||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||||||||||||||||
Land | $ | 122,458,226 | $ | 91,609,368 | |||||||||||||||||||||||
Building | 569,773,422 | 474,301,322 | |||||||||||||||||||||||||
In-place leases and other intangibles | 127,359,203 | 83,909,105 | |||||||||||||||||||||||||
Real estate | 819,590,851 | 649,819,795 | |||||||||||||||||||||||||
Less: Accumulated depreciation and amortization | (50,604,658 | ) | (25,600,780 | ) | |||||||||||||||||||||||
Real estate and related lease intangibles, net | $ | 768,986,193 | $ | 624,219,015 | |||||||||||||||||||||||
Schedule of depreciation and amortization expense recorded | The following table presents depreciation and amortization expense on real estate recorded by the Company: | ||||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||
Depreciation expense (1) | $ | 18,034,142 | $ | 13,150,757 | $ | 1,148,419 | |||||||||||||||||||||
Amortization expense | 10,237,716 | 7,816,507 | 1,944,892 | ||||||||||||||||||||||||
Total real estate depreciation and amortization expense | $ | 28,271,858 | $ | 20,967,264 | $ | 3,093,311 | |||||||||||||||||||||
-1 | Depreciation expense on the combined consolidated statements of income also includes $175,579, $547,308 and $547,308 of depreciation on corporate fixed assets for the years ended 2014, 2013 and 2012, respectively. | ||||||||||||||||||||||||||
Schedule of expected amortization expense related to the acquired in-place lease intangibles, for property owned | The following table presents expected amortization expense during the next five years and thereafter related to the acquired in-place lease intangibles for property owned as of December 31, 2014: | ||||||||||||||||||||||||||
Year Ended December 31, | Amount | ||||||||||||||||||||||||||
2015 | $ | 14,821,524 | |||||||||||||||||||||||||
2016 | 12,924,316 | ||||||||||||||||||||||||||
2017 | 9,876,406 | ||||||||||||||||||||||||||
2018 | 7,807,079 | ||||||||||||||||||||||||||
2019 | 7,509,205 | ||||||||||||||||||||||||||
Thereafter | 47,112,706 | ||||||||||||||||||||||||||
Total | $ | 100,051,236 | |||||||||||||||||||||||||
Schedule of contractual future minimum rent under leases | The following is a schedule of contractual future minimum rent under leases (excluding property operating expenses paid directly by tenant under net leases or rent escalations under other leases from tenants) at December 31, 2014: | ||||||||||||||||||||||||||
Year Ended December 31, | Amount | ||||||||||||||||||||||||||
2015 | $ | 65,109,827 | |||||||||||||||||||||||||
2016 | 57,963,866 | ||||||||||||||||||||||||||
2017 | 54,677,652 | ||||||||||||||||||||||||||
2018 | 51,925,456 | ||||||||||||||||||||||||||
2019 | 47,282,871 | ||||||||||||||||||||||||||
Thereafter | 405,026,328 | ||||||||||||||||||||||||||
Total | $ | 681,986,000 | |||||||||||||||||||||||||
INVESTMENT_IN_UNCONSOLIDATED_J1
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | |||||||||||||
Summary of the Company's investments in unconsolidated joint ventures, which the entity accounts for using the equity method | The following is a summary of the Company’s investments in unconsolidated joint ventures, which we account for using the equity method, as of December 31, 2014 and 2013: | ||||||||||||
Entity | December 31, 2014 | December 31, 2013 | |||||||||||
Ladder Capital Realty Income Partnership I LP | $ | 3,898,435 | $ | 7,119,864 | |||||||||
Grace Lake JV, LLC | 2,142,898 | 2,142,898 | |||||||||||
Company’s investment in unconsolidated joint ventures | $ | 6,041,333 | $ | 9,262,762 | |||||||||
Summary of the Company's allocated earnings based on its ownership interests from investment in unconsolidated joint ventures | The following is a summary of the Company’s allocated earnings based on its ownership interests from investment in unconsolidated joint ventures for the years ended December 31, 2014, 2013 and 2012: | ||||||||||||
Year Ended December 31, | |||||||||||||
Entity | 2014 | 2013 | 2012 | ||||||||||
Ladder Capital Realty Income Partnership I LP | $ | 1,090,117 | $ | 2,568,358 | $ | 1,256,109 | |||||||
Grace Lake JV, LLC | 900,000 | 635,000 | — | ||||||||||
Earnings from investment in unconsolidated joint ventures | $ | 1,990,117 | $ | 3,203,358 | $ | 1,256,109 | |||||||
Summary of the combined results from operations of the unconsolidated joint ventures for the period in which the Company had investment interests | The following is a summary of the combined results from operations of the unconsolidated joint ventures for the period in which the Company had investment interests during the year ended December 31, 2014, 2013 and 2012: | ||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Total revenues | $ | 26,058,808 | $ | 36,135,088 | $ | 17,373,332 | |||||||
Total expenses | $ | 16,863,743 | 10,553,956 | 5,800,282 | |||||||||
Net income | $ | 9,195,065 | $ | 25,581,132 | $ | 11,573,050 | |||||||
The following is a summary of the combined financial position of the unconsolidated joint ventures in which the Company had investment interests as of December 31, 2014 and 2013: | |||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||
Total assets | $ | 118,761,580 | $ | 190,415,719 | |||||||||
Total liabilities | 81,072,965 | 112,808,701 | |||||||||||
Partners’/members’ capital | $ | 37,688,615 | $ | 77,607,018 | |||||||||
DEBT_OBLIGATIONS_Tables
DEBT OBLIGATIONS (Tables) | 12 Months Ended | ||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||
Schedule of repurchase agreement | December 31, 2014 | ||||||||||||||||||||||||||
Committed | Outstanding | Committed but | Interest Rate(s) | Current Term Maturity | Remaining | Eligible | Carrying | Fair | |||||||||||||||||||
Amount | Amount | Unfunded | at December 31, 2014 | Extension | Collateral (1) | Amount of | Value of | ||||||||||||||||||||
Options | Collateral | Collateral | |||||||||||||||||||||||||
$ | 450,000,000 | $ | 147,796,694 | $ | 302,203,306 | Between 2.42% and 2.66% | 10/30/16 | Two additional twelve month periods at Company’s option | First mortgage commercial real estate loans | $ | 278,530,141 | $ | 279,921,708 | ||||||||||||||
$ | 250,000,000 | $ | 138,711,146 | $ | 111,288,854 | Between 2.41% and 3.04% | 4/10/16 | One additional 364 day period at Company’s option | First mortgage and mezzanine commercial real estate loans | $ | 144,857,341 | $ | 145,748,847 | ||||||||||||||
$ | 450,000,000 | $ | 222,515,907 | $ | 227,484,093 | Between 2.42% and 3.16% | 5/26/15 | Two additional twelve month periods at Company’s option | First mortgage commercial real estate loans | $ | 378,573,214 | $ | 380,343,917 | ||||||||||||||
$ | 1,150,000,000 | $ | 509,023,747 | $ | 640,976,253 | $ | 801,960,696 | $ | 806,014,472 | ||||||||||||||||||
$ | 300,000,000 | $ | 174,852,934 | $ | 125,147,066 | 4/30/15 | N/A | Investment grade commercial real estate securities | $ | 214,616,911 | $ | 214,616,911 | |||||||||||||||
N/A (2) | $ | 747,789,000 | N/A (2) | Between 0.50% and 1.66% | Various | N/A | Investment grade commercial real estate securities | $ | 861,456,415 | $ | 861,456,415 | ||||||||||||||||
$ | 1,450,000,000 | $ | 1,431,665,681 | $ | 766,123,319 | $ | 1,878,034,022 | $ | 1,882,087,798 | ||||||||||||||||||
-1 | Collateral includes first mortgage and mezzanine real estate loans and investment grade commercial real estate securities. It does not include the real estate collateralizing such loans and securities. | ||||||||||||||||||||||||||
-2 | Represents uncommitted securities repurchase facilities for which there is no committed amount subject to future advances. | ||||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||
Committed | Outstanding | Committed but | Interest Rate(s) | Current Term Maturity | Remaining | Eligible | Carrying | Fair | |||||||||||||||||||
Amount | Amount | Unfunded | at December 31, 2013 | Extension | Collateral (1) | Amount of | Value of | ||||||||||||||||||||
Options | Collateral | Collateral | |||||||||||||||||||||||||
$ | 300,000,000 | $ | 22,749,015 | $ | 277,250,985 | Between 2.42% and 2.67% | 5/18/15 | Two additional twelve month periods at Company’s option | First mortgage commercial real estate loans | $ | 46,084,620 | $ | 46,483,618 | ||||||||||||||
$ | 250,000,000 | $ | 28,407,500 | $ | 221,592,500 | Between 2.42% and 3.04% | 4/10/14 | Two additional 364 day periods at Company’s option | First mortgage commercial real estate loans | $ | 41,428,429 | $ | 41,518,063 | ||||||||||||||
$ | 450,000,000 | $ | 60,423,328 | $ | 389,576,672 | Between 2.41% and 3.18% | 5/26/15 | Two additional twelve month periods at Company’s option | First mortgage commercial real estate loans | $ | 132,160,677 | $ | 132,673,364 | ||||||||||||||
$ | 300,000,000 | $ | 47,732,500 | $ | 252,267,500 | Between 2.66% and 2.67% | 1/24/14 | N/A | First mortgage commercial real estate loans | $ | 65,350,000 | $ | 65,813,055 | ||||||||||||||
$ | 1,300,000,000 | $ | 159,312,343 | $ | 1,140,687,657 | $ | 285,023,726 | $ | 286,488,100 | ||||||||||||||||||
$ | 600,000,000 | $ | 88,921,450 | $ | 511,078,550 | Between 1.26% and 1.27% | 4/30/15 | N/A | Investment grade commercial real estate securities | $ | 110,400,378 | $ | 110,400,378 | ||||||||||||||
N/A (2) | $ | 361,601,000 | N/A (2) | Between 0.42% and 1.67% | 1/17/14 | N/A | Investment grade commercial real estate securities | $ | 440,721,692 | $ | 440,721,692 | ||||||||||||||||
$ | 1,900,000,000 | $ | 609,834,793 | $ | 1,651,766,207 | $ | 836,145,796 | $ | 837,610,170 | ||||||||||||||||||
-1 | Collateral includes first mortgage real estate loans and investment grade commercial real estate securities. It does not include the real estate collateralizing such loans and securities. | ||||||||||||||||||||||||||
-2 | Represents uncommitted securities repurchase facilities for which there is no committed amount subject to future advances. | ||||||||||||||||||||||||||
Schedule of contractual payments under all borrowings by maturity | The following schedule reflects the Company’s contractual payments under all borrowings by maturity: | ||||||||||||||||||||||||||
Period ending December 31, | Borrowings by | ||||||||||||||||||||||||||
Maturity (1) | |||||||||||||||||||||||||||
2015 | $ | 2,155,163,140 | |||||||||||||||||||||||||
2016 | 484,321,730 | ||||||||||||||||||||||||||
2017 | 502,696,941 | ||||||||||||||||||||||||||
2018 | 54,558,934 | ||||||||||||||||||||||||||
2019 | 28,458,573 | ||||||||||||||||||||||||||
Thereafter | 961,930,576 | ||||||||||||||||||||||||||
Total | $ | 4,187,129,894 | |||||||||||||||||||||||||
(1) Contractual payments under current maturities, some of which are subject to extensions. | |||||||||||||||||||||||||||
The Company’s debt facilities are subject to covenants which require the Company to maintain a minimum level of total equity. Largely as a result of this restriction, approximately $900.3 million of the total equity is restricted from payment as a dividend by the Company at December 31, 2014. |
FAIR_VALUE_OF_FINANCIAL_INSTRU1
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||
Summary of fair value | The carrying values and estimated fair values of the Company’s financial instruments, which are both reported at fair value on a recurring basis (as indicated) or amortized cost/par, at December 31, 2014 and 2013 are as follows ($ in thousands): | ||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||
Weighted Average | |||||||||||||||||||||
Outstanding | Amortized | Fair Value | Fair Value | Yield | Remaining | ||||||||||||||||
Face Amount | Cost Basis | Method | % | Maturity/Duration (years) | |||||||||||||||||
Assets: | |||||||||||||||||||||
CMBS(1) | $ | 2,247,565 | $ | 2,277,995 | $ | 2,305,409 | Internal model, third-party inputs | 2.6 | % | 4.23 | |||||||||||
CMBS interest-only(1) | 7,239,503 | -8 | 376,085 | 378,335 | Internal model, third-party inputs | 4.88 | % | 3.45 | |||||||||||||
GNMA interest-only(1) | 1,400,141 | -8 | 67,543 | 66,642 | Internal model, third-party inputs | 5.9 | % | 4.5 | |||||||||||||
GN construction securities(1) | 27,538 | 28,178 | 28,406 | Internal model, third-party inputs | 3.56 | % | 9.42 | ||||||||||||||
GN permanent securities(1) | 36,232 | 36,515 | 36,773 | Internal model, third-party inputs | 4.94 | % | 1.32 | ||||||||||||||
Mortgage loan receivable held for investment, at amortized cost | 1,536,923 | 1,521,053 | 1,540,388 | Discounted Cash Flow(4) | 7.33 | % | 1.96 | ||||||||||||||
Mortgage loan receivable held for sale | 417,955 | 417,955 | 421,991 | Discounted Cash Flow(5) | 4.31 | % | 9.72 | ||||||||||||||
FHLB stock(6) | 72,340 | 72,340 | 72,340 | -6 | 3.5 | % | N/A | ||||||||||||||
Nonhedge derivatives(1)(7) | 125,050 | N/A | 424 | Counterparty quotations | N/A | 3.45 | |||||||||||||||
Liabilities: | |||||||||||||||||||||
Repurchase agreements - short-term | 1,331,603 | 1,331,603 | 1,331,603 | Discounted Cash Flow(2) | 1.32 | % | 0.23 | ||||||||||||||
Repurchase agreements - long-term | 100,062 | 100,062 | 100,062 | Discounted Cash Flow(2) | 1.89 | % | 1.59 | ||||||||||||||
Borrowings under credit agreement | 11,000 | 11,000 | 11,000 | Discounted Cash Flow(9) | 2.91 | % | 1.07 | ||||||||||||||
Borrowings under credit and security agreement | 46,750 | 46,750 | 46,750 | Discounted Cash Flow(9) | 2.01 | % | 1.77 | ||||||||||||||
Revolving credit facility | 25,000 | 25,000 | 25,000 | Discounted Cash Flow(9) | 3.66 | % | 2.12 | ||||||||||||||
Mortgage loan financing | 442,753 | 447,410 | 455,846 | Discounted Cash Flow(3) | 4.85 | % | 8.47 | ||||||||||||||
Borrowings from the FHLB | 1,611,000 | 1,611,000 | 1,616,373 | Discounted Cash Flow(2) | 0.79 | % | 2.05 | ||||||||||||||
Senior unsecured notes | 619,555 | 619,555 | 611,745 | Broker quotations, pricing services | 6.65 | % | 4.61 | ||||||||||||||
Nonhedge derivatives(1)(7) | 1,428,700 | N/A | 13,446 | Counterparty quotations | N/A | 1.41 | |||||||||||||||
-1 | Measured at fair value on a recurring basis with the net unrealized gains or losses on all securities, except for Agency interest-only securities, recorded as a component of other comprehensive income (loss) in equity. | ||||||||||||||||||||
-2 | Fair value for repurchase agreement liabilities is estimated to approximate carrying amount primarily due to the short interest rate reset risk (30 days) of the financings and the high credit quality of the assets collateralizing these positions. For the borrowings from the FHLB, the carrying value approximates the fair value discounting the expected cash flows. If the collateral is determined to be impaired, the related financing would be revalued accordingly. There are no impairments on any positions. | ||||||||||||||||||||
-3 | For the mortgage loan financing, the carrying value approximates the fair value discounting the expected cash flows at current market rates. If the collateral is determined to be impaired, the related financing would be revalued accordingly. There are no impairments on any positions. | ||||||||||||||||||||
-4 | Fair value for floating rate mortgage loan receivables, held for investment is estimated to approximate the outstanding face amount given the short interest rate reset risk (30 days) and no significant change in credit risk. Fair value for fixed rate mortgage loan receivables, held for investment is measured using a hypothetical securitization model utilizing market data from recent securitization spreads and pricing. | ||||||||||||||||||||
-5 | Fair value for mortgage loan receivables, held for sale is measured using a hypothetical securitization model utilizing market data from recent securitization spreads and pricing. | ||||||||||||||||||||
-6 | The fair value of the FHLB stock approximates outstanding face amount as the Company’s wholly-owned subsidiary is restricted from trading the stock and can only put the stock back to the FHLB, at the FHLB’s discretion, at par. | ||||||||||||||||||||
-7 | The outstanding face amount of the nonhedge derivatives represents the notional amount of the underlying contracts. | ||||||||||||||||||||
-8 | Represents notional outstanding balance of underlying collateral. | ||||||||||||||||||||
-9 | Fair value for borrowings under credit agreement, credit and security agreement and revolving credit facility is estimated to approximate carrying amount primarily due to the short interest rate reset risk (30 days) of the financings and the high credit quality of the assets collateralizing these positions. | ||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||
Weighted Average | |||||||||||||||||||||
Outstanding | Amortized | Fair Value | Fair Value | Yield | Remaining | ||||||||||||||||
Face Amount | Cost Basis | Method | % | Maturity/Duration (years) | |||||||||||||||||
Assets: | |||||||||||||||||||||
CMBS(1) | $ | 1,160,741 | $ | 1,156,230 | $ | 1,164,936 | Broker quotations, pricing services | 4.08 | % | 4.88 | |||||||||||
CMBS interest-only(1) | 5,702,862 | -8 | 256,869 | 258,058 | Broker quotations, pricing services | 4.19 | % | 3.38 | |||||||||||||
GNMA interest-only(1) | 1,848,270 | -8 | 103,136 | 99,877 | Broker quotations, pricing services | 5.32 | % | 2.12 | |||||||||||||
FHLMC interest-only(1) | 219,677 | -8 | 7,904 | 8,152 | Broker quotations, pricing services | 5.21 | % | 3.04 | |||||||||||||
GN construction securities(1) | 12,858 | 13,261 | 13,007 | Broker quotations, pricing services | 3.49 | % | 6.57 | ||||||||||||||
GN permanent securities(1) | 108,310 | 110,724 | 113,216 | Broker quotations, pricing services | 4.64 | % | 3.27 | ||||||||||||||
Mortgage loan receivable held for investment, at amortized cost | 549,574 | 539,078 | 541,578 | Discounted Cash Flow(4) | 9.76 | % | 2.14 | ||||||||||||||
Mortgage loan receivable held for sale | 440,775 | 440,490 | 455,804 | Discounted Cash Flow(5) | 5.47 | % | 9.62 | ||||||||||||||
FHLB stock(6) | 49,450 | 49,450 | 49,450 | -6 | 3.5 | % | N/A | ||||||||||||||
Nonhedge derivatives(1)(7) | 808,700 | N/A | 8,244 | Counterparty quotations | N/A | 0.5 | |||||||||||||||
Liabilities: | |||||||||||||||||||||
Repurchase agreements - short-term | 409,334 | 409,334 | 409,334 | Discounted Cash Flow(2) | 1.46 | % | 0.04 | ||||||||||||||
Repurchase agreements - long-term | 200,501 | 200,501 | 200,501 | Discounted Cash Flow(2) | 2.13 | % | 1.49 | ||||||||||||||
Mortgage loan financing | 287,246 | 291,053 | 278,129 | Discounted Cash Flow(3) | 4.84 | % | 8.7 | ||||||||||||||
Borrowings from the FHLB | 989,000 | 989,000 | 987,896 | Discounted Cash Flow(2) | 0.57 | % | 1.6 | ||||||||||||||
Senior unsecured notes | 325,000 | 325,000 | 341,250 | Broker quotations, pricing services | 7.38 | % | 3.75 | ||||||||||||||
Nonhedge derivatives(1)(7) | 154,500 | N/A | 7,031 | Counterparty quotations | N/A | 4.55 | |||||||||||||||
-1 | Measured at fair value on a recurring basis with the net unrealized gains or losses on all securities, except for Agency interest-only securities, recorded as a component of other comprehensive income (loss) in equity. | ||||||||||||||||||||
-2 | Fair value for repurchase agreement liabilities is estimated to approximate carrying amount primarily due to the short interest rate reset risk (30 days) of the financings and the high credit quality of the assets collateralizing these positions. For the borrowings from the FHLB, the carrying value approximates the fair value discounting the expected cash flows. If the collateral is determined to be impaired, the related financing would be revalued accordingly. There are no impairments on any positions. | ||||||||||||||||||||
-3 | For the mortgage loan financing, the carrying value approximates the fair value discounting the expected cash flows at current market rates. If the collateral is determined to be impaired, the related financing would be revalued accordingly. There are no impairments on any positions. | ||||||||||||||||||||
-4 | Fair value for floating rate mortgage loan receivables, held for investment is estimated to approximate the outstanding face amount given the short interest rate reset risk (30 days) and no significant change in credit risk. Fair value for fixed rate mortgage loan receivables, held for investment is measured using a hypothetical securitization model utilizing market data from recent securitization spreads and pricing. | ||||||||||||||||||||
-5 | Fair value for mortgage loan receivables, held for sale is measured using a hypothetical securitization model utilizing market data from recent securitization spreads and pricing. | ||||||||||||||||||||
-6 | The fair value of the FHLB stock approximates outstanding face amount as the Company’s wholly-owned subsidiary is restricted from trading the stock and can only put the stock back to the FHLB, at the FHLB’s discretion, at par. | ||||||||||||||||||||
-7 | The outstanding face amount of the nonhedge derivatives represents the notional amount of the underlying contracts. | ||||||||||||||||||||
-8 | Represents notional outstanding balance of underlying collateral. | ||||||||||||||||||||
Summary of financial assets and liabilities, both reported at fair value on a recurring basis or amortized cost/par | The following table summarizes the Company’s financial assets and liabilities, which are both reported at fair value on a recurring basis (as indicated) or amortized cost/par, at December 31, 2014 and 2013 ($ in thousands): | ||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||
Financial Instruments Reported at Fair Value on Combined Consolidated Statements of Financial Condition | Outstanding Face | Fair Value | |||||||||||||||||||
Amount | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||
Assets: | |||||||||||||||||||||
CMBS(1) | $ | 2,247,565 | $ | — | $ | — | $ | 2,305,409 | $ | 2,305,409 | |||||||||||
CMBS interest-only(1) | 7,239,503 | -2 | — | — | 378,335 | 378,335 | |||||||||||||||
GNMA interest-only(1) | 1,400,141 | -2 | — | 66,642 | — | 66,642 | |||||||||||||||
GN construction securities(1) | 27,538 | — | 28,406 | — | 28,406 | ||||||||||||||||
GN permanent securities(1) | 36,232 | — | 36,773 | — | 36,773 | ||||||||||||||||
Financial Instruments Not Reported at Fair Value on Combined Consolidated Statements of Financial Condition | Outstanding Face | Fair Value | |||||||||||||||||||
Amount | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||
Assets: | |||||||||||||||||||||
Mortgage loan receivable held for investment | $ | 1,536,923 | $ | — | $ | — | $ | 1,540,388 | $ | 1,540,388 | |||||||||||
Mortgage loan receivable held for sale | 417,955 | — | — | 421,991 | 421,991 | ||||||||||||||||
FHLB stock | 72,340 | — | — | 72,340 | 72,340 | ||||||||||||||||
Nonhedge derivatives(1) | 125,050 | — | 424 | — | 424 | ||||||||||||||||
Liabilities: | 0 | ||||||||||||||||||||
Repurchase agreements - short-term | 1,331,603 | — | 68,357 | 1,263,246 | 1,331,603 | ||||||||||||||||
Repurchase agreements - long-term | 100,062 | — | — | 100,062 | 100,062 | ||||||||||||||||
Borrowings under credit agreement | 11,000 | — | — | 11,000 | 11,000 | ||||||||||||||||
Borrowings under credit and security agreement | 46,750 | — | — | 46,750 | 46,750 | ||||||||||||||||
Revolving credit facility | 25,000 | — | — | 25,000 | 25,000 | ||||||||||||||||
Mortgage loan financing | 442,753 | — | — | 455,846 | 455,846 | ||||||||||||||||
Borrowings from the FHLB | 1,611,000 | — | — | 1,616,373 | 1,616,373 | ||||||||||||||||
Senior unsecured notes | 619,555 | — | — | 611,745 | 611,745 | ||||||||||||||||
Nonhedge derivatives(1) | 1,428,700 | — | 13,446 | — | 13,446 | ||||||||||||||||
-1 | Measured at fair value on a recurring basis. The outstanding face amount of the nonhedge derivatives represents the notional amount of the underlying contracts. | ||||||||||||||||||||
(2) | Represents notional outstanding balance of underlying collateral. | ||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||
Financial Instruments Reported at Fair Value on Combined Consolidated Statements of Financial Condition | Outstanding Face | Fair Value | |||||||||||||||||||
Amount | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||
Assets: | |||||||||||||||||||||
CMBS(1) | $ | 1,160,741 | $ | — | $ | 1,164,936 | $ | — | $ | 1,164,936 | |||||||||||
CMBS interest-only(1) | 5,702,862 | -2 | — | 258,058 | — | 258,058 | |||||||||||||||
GNMA interest-only(1) | 1,848,270 | -2 | — | 99,877 | — | 99,877 | |||||||||||||||
FHLMC interest-only(1) | 219,677 | -2 | — | 8,152 | — | 8,152 | |||||||||||||||
GN construction securities(1) | 12,858 | — | 13,007 | — | 13,007 | ||||||||||||||||
GN permanent securities(1) | 108,310 | — | 113,216 | — | 113,216 | ||||||||||||||||
Financial Instruments Not Reported at Fair Value on Combined Consolidated Statements of Financial Condition | Outstanding Face | Fair Value | |||||||||||||||||||
Amount | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||
Assets: | |||||||||||||||||||||
Mortgage loan receivable held for investment | 549,574 | — | — | 541,578 | 541,578 | ||||||||||||||||
Mortgage loan receivable held for sale | 440,775 | — | — | 455,804 | 455,804 | ||||||||||||||||
FHLB stock | 49,450 | — | — | 49,450 | 49,450 | ||||||||||||||||
Nonhedge derivatives(1) | 808,700 | — | 8,244 | — | 8,244 | ||||||||||||||||
Liabilities: | 0 | ||||||||||||||||||||
Repurchase agreements - short-term | 409,334 | — | 409,334 | — | 409,334 | ||||||||||||||||
Repurchase agreements - long-term | 200,501 | — | 200,501 | — | 200,501 | ||||||||||||||||
Mortgage loan financing | 287,246 | — | — | 278,129 | 278,129 | ||||||||||||||||
Borrowings from the FHLB | 989,000 | — | — | 987,896 | 987,896 | ||||||||||||||||
Senior unsecured notes | 325,000 | — | 341,250 | — | 341,250 | ||||||||||||||||
Nonhedge derivatives(1) | 154,500 | — | 7,031 | — | 7,031 | ||||||||||||||||
-1 | Measured at fair value on a recurring basis. The outstanding face amount of the nonhedge derivatives represents the notional amount of the underlying contracts. | ||||||||||||||||||||
(2) | Represents notional outstanding balance of underlying collateral. | ||||||||||||||||||||
Schedule of changes in Level 3 of financial instruments | The following table summarizes changes in level 3 of financial instruments reported at fair value on the combined consolidated statements of financial condition for the year ended December 31, 2014. There were no changes for the the year ended December 31, 2013. ($ in thousands): | ||||||||||||||||||||
Level 3 | |||||||||||||||||||||
Balance at December 31, 2013 | $ | — | |||||||||||||||||||
Transfer from level 2 | 1,422,995 | ||||||||||||||||||||
Purchases | 2,121,503 | ||||||||||||||||||||
Sales | (692,306 | ) | |||||||||||||||||||
Paydowns/maturities | (155,525 | ) | |||||||||||||||||||
Amortization of premium/discount | (60,993 | ) | |||||||||||||||||||
Unrealized gain/(loss) | 19,769 | ||||||||||||||||||||
Realized gain/(loss) on sale | 28,301 | ||||||||||||||||||||
Balance at December 31, 2014 | $ | 2,683,744 | |||||||||||||||||||
DERIVATIVE_INSTRUMENTS_Tables
DERIVATIVE INSTRUMENTS (Tables) | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||
Schedule of breakdown of the derivatives outstanding | The following is a breakdown of the derivatives outstanding as of December 31, 2014 and 2013: | ||||||||||||||
December 31, 2014 | |||||||||||||||
Fair Value | Remaining | ||||||||||||||
Maturity | |||||||||||||||
Contract Type | Notional | Asset(1) | Liability(1) | (years) | |||||||||||
Caps | |||||||||||||||
1MO LIBOR | $ | 71,250,000 | $ | 4 | $ | — | 0.66 | ||||||||
Futures | |||||||||||||||
5-year Swap | $ | 496,200,000 | $ | 108,562 | $ | 27,732 | 0.25 | ||||||||
10-year Swap | 842,800,000 | 103,765 | 8,258,356 | 0.25 | |||||||||||
Total futures | 1,339,000,000 | 212,327 | 8,286,088 | ||||||||||||
Swaps | |||||||||||||||
3MO LIBOR | 100,000,000 | — | 4,505,444 | 3.18 | |||||||||||
Credit Derivatives | |||||||||||||||
CMBX | 10,000,000 | 211,170 | — | 6.8 | |||||||||||
CDX | 33,500,000 | — | 653,986 | 3.97 | |||||||||||
Total credit derivatives | 43,500,000 | 211,170 | 653,986 | ||||||||||||
Total derivatives | $ | 1,553,750,000 | $ | 423,501 | $ | 13,445,518 | |||||||||
December 31, 2013 | |||||||||||||||
Fair Value | Remaining | ||||||||||||||
Maturity | |||||||||||||||
Contract Type | Notional | Asset(1) | Liability(1) | (years) | |||||||||||
Caps | |||||||||||||||
1MO LIBOR | $ | 71,250,000 | $ | — | $ | — | 0.14 | ||||||||
Futures | |||||||||||||||
5-year Swap | $ | 45,000,000 | $ | 402,719 | $ | — | 0.25 | ||||||||
10-year Swap | 753,700,000 | 7,589,466 | — | 0.25 | |||||||||||
Total futures | 798,700,000 | 7,992,185 | — | ||||||||||||
Swaps | |||||||||||||||
3MO LIBOR | 121,000,000 | — | 6,420,495 | 4.51 | |||||||||||
Credit Derivatives | |||||||||||||||
CMBX | 10,000,000 | 252,170 | — | 8.38 | |||||||||||
CDX | 33,500,000 | — | 610,538 | 4.97 | |||||||||||
Total credit derivatives | 43,500,000 | 252,170 | 610,538 | ||||||||||||
Total derivatives | $ | 1,034,450,000 | $ | 8,244,355 | $ | 7,031,033 | |||||||||
(1) Shown as derivative instruments, at fair value, in the accompanying combined consolidated balance sheets. | |||||||||||||||
Schedule of net realized gains/(losses) and unrealized appreciation/(depreciation) on derivatives | The following table indicates the net realized gains/(losses) and unrealized appreciation/(depreciation) on derivatives, by primary underlying risk exposure, as included in net result from derivatives transactions in the combined consolidated statements of operations for the year ended December 31, 2014, 2013 and 2012: | ||||||||||||||
Year Ended December 31, 2014 | |||||||||||||||
Unrealized | Realized | Net Result | |||||||||||||
Gain/(Loss) | Gain/(Loss) | from | |||||||||||||
Derivative | |||||||||||||||
Transactions | |||||||||||||||
Contract Type | |||||||||||||||
Caps | $ | 4 | $ | (7,125 | ) | $ | (7,121 | ) | |||||||
Futures | (16,064,974 | ) | (74,945,667 | ) | (91,010,641 | ) | |||||||||
Swaps | 1,780,054 | (5,160,585 | ) | (3,380,531 | ) | ||||||||||
Credit Derivatives | (86,309 | ) | (313,153 | ) | (399,462 | ) | |||||||||
Total | $ | (14,371,225 | ) | $ | (80,426,530 | ) | $ | (94,797,755 | ) | ||||||
Year Ended December 31, 2013 | |||||||||||||||
Unrealized | Realized | Net Result | |||||||||||||
Gain/(Loss) | Gain/(Loss) | from | |||||||||||||
Derivative | |||||||||||||||
Transactions | |||||||||||||||
Contract Type | |||||||||||||||
Caps | $ | (21 | ) | $ | — | $ | (21 | ) | |||||||
Futures | 4,419,955 | 19,998,551 | 24,418,506 | ||||||||||||
Swaps | 11,288,233 | (4,834,218 | ) | 6,454,015 | |||||||||||
Credit Derivatives | (1,679,906 | ) | (1,117,362 | ) | (2,797,268 | ) | |||||||||
Total | $ | 14,028,261 | $ | 14,046,971 | $ | 28,075,232 | |||||||||
Year Ended December 31, 2012 | |||||||||||||||
Unrealized | Realized | Net Result | |||||||||||||
Gain/(Loss) | Gain/(Loss) | from | |||||||||||||
Derivative | |||||||||||||||
Transactions | |||||||||||||||
Contract Type | |||||||||||||||
Caps | $ | (1,798 | ) | $ | — | $ | (1,798 | ) | |||||||
Futures | 5,980,796 | (22,967,881 | ) | (16,987,085 | ) | ||||||||||
Swaps | 5,000,099 | (18,616,592 | ) | (13,616,493 | ) | ||||||||||
Credit Derivatives | 1,347,963 | (6,393,576 | ) | (5,045,613 | ) | ||||||||||
Total | $ | 12,327,060 | $ | (47,978,049 | ) | $ | (35,650,989 | ) | |||||||
OFFSETTING_ASSETS_AND_LIABILIT1
OFFSETTING ASSETS AND LIABILITIES (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Offsetting [Abstract] | |||||||||||||||||||||||||
Schedule of offsetting of financial assets | As of December 31, 2014 | ||||||||||||||||||||||||
Offsetting of Financial Assets and Derivative Assets | |||||||||||||||||||||||||
($ in thousands) | |||||||||||||||||||||||||
Description | Gross amounts of | Gross amounts | Net amounts of | Gross amounts not offset in the | Net amount | ||||||||||||||||||||
recognized assets | offset in the | assets presented | balance sheet | ||||||||||||||||||||||
balance sheet | in the balance | ||||||||||||||||||||||||
sheet | Financial | Cash collateral | |||||||||||||||||||||||
instruments | received/(posted)(1) | ||||||||||||||||||||||||
Derivatives | $ | 424 | $ | — | $ | 424 | $ | — | $ | — | $ | 424 | |||||||||||||
Total | $ | 424 | $ | — | $ | 424 | $ | — | $ | — | $ | 424 | |||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||
Offsetting of Financial Assets and Derivative Assets | |||||||||||||||||||||||||
($ in thousands) | |||||||||||||||||||||||||
Description | Gross amounts of | Gross amounts | Net amounts of | Gross amounts not offset in the | Net amount | ||||||||||||||||||||
recognized assets | offset in the | assets presented | balance sheet | ||||||||||||||||||||||
balance sheet | in the balance | ||||||||||||||||||||||||
sheet | Financial | Cash collateral | |||||||||||||||||||||||
instruments | received/(posted)(1) | ||||||||||||||||||||||||
Derivatives | $ | 8,244 | $ | — | $ | 8,244 | $ | — | $ | — | $ | 8,244 | |||||||||||||
Total | $ | 8,244 | $ | — | $ | 8,244 | $ | — | $ | — | $ | 8,244 | |||||||||||||
Schedule of offsetting of financial liabilities | As of December 31, 2014 | ||||||||||||||||||||||||
Offsetting of Financial Liabilities and Derivative Liabilities | |||||||||||||||||||||||||
($ in thousands) | |||||||||||||||||||||||||
Description | Gross amounts of | Gross amounts | Net amounts of | Gross amounts not offset in the | Net amount | ||||||||||||||||||||
recognized | offset in the | liabilities | balance sheet | ||||||||||||||||||||||
liabilities | balance sheet | presented in the | |||||||||||||||||||||||
balance sheet | Financial | Cash collateral | |||||||||||||||||||||||
instruments | posted/(received)(1) | ||||||||||||||||||||||||
collateral | |||||||||||||||||||||||||
Derivatives | $ | 13,446 | $ | — | $ | 13,446 | $ | — | $ | 13,446 | — | ||||||||||||||
Repurchase agreements | 1,431,666 | — | 1,431,666 | 1,431,666 | — | — | |||||||||||||||||||
Total | $ | 1,445,112 | $ | — | $ | 1,445,112 | $ | 1,431,666 | $ | 13,446 | $ | — | |||||||||||||
(1) Included in cash collateral held by broker on combined consolidated balance sheets. | |||||||||||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||
Offsetting of Financial Liabilities and Derivative Liabilities | |||||||||||||||||||||||||
($ in thousands) | |||||||||||||||||||||||||
Description | Gross amounts of | Gross amounts | Net amounts of | Gross amounts not offset in the | Net amount | ||||||||||||||||||||
recognized | offset in the | liabilities | balance sheet | ||||||||||||||||||||||
liabilities | balance sheet | presented in the | |||||||||||||||||||||||
balance sheet | Financial | Cash collateral | |||||||||||||||||||||||
instruments | posted/(received)(1) | ||||||||||||||||||||||||
collateral | |||||||||||||||||||||||||
Derivatives | $ | 7,031 | $ | — | $ | 7,031 | $ | — | $ | 7,031 | $ | — | |||||||||||||
Repurchase agreements | 609,835 | — | 609,835 | 609,835 | — | — | |||||||||||||||||||
Total | $ | 616,866 | $ | — | $ | 616,866 | $ | 609,835 | $ | 7,031 | $ | — | |||||||||||||
(1) Included in cash collateral held by broker on combined consolidated balance sheets. |
EQUITY_STRUCTURE_AND_ACCOUNTS_
EQUITY STRUCTURE AND ACCOUNTS (Tables) | 12 Months Ended |
Dec. 31, 2014 | |
Equity [Abstract] | |
Schedule of changes in accumulated other comprehensive income |
NONCONTROLLING_INTERESTS_Table
NONCONTROLLING INTERESTS (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Noncontrolling Interest [Abstract] | ||||||||||||
Net income attributable to stockholders and predecessor unit holders | The following table presents net income attributable to the Company’s Class A common stockholders for the year ended December 31, 2014 and net income attributable to predecessor unit holders for the years ended December 31, 2013 and 2012: | |||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Net income | 97,626,251 | 188,733,086 | 169,454,280 | |||||||||
Net loss attributable to noncontrolling interest in consolidated joint ventures | 368,670 | 1,098,150 | 49,084 | |||||||||
Net loss attributable to predecessor unitholders | 12,628,031 | $ | 189,831,236 | $ | 169,503,364 | |||||||
Net (income) attributable to noncontrolling interest in operating partnership | (66,436,274 | ) | ||||||||||
Net income attributable to Class A common shareholders | $ | 44,186,678 | ||||||||||
EARNINGS_PER_SHARE_Tables
EARNINGS PER SHARE (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Earnings Per Share [Abstract] | |||||
Schedule of the Company's net income and weighted average shares outstanding | The Company’s net income and weighted average shares outstanding for the period February 11, 2014 through December 31, 2014 consists of the following: | ||||
($ in thousands except share amounts) | For the Period | ||||
February 11, 2014 | |||||
through | |||||
December 31, | |||||
2014 | |||||
Basic Net income available for Class A common stockholders | $ | 44,187 | |||
Diluted Net income available for Class A common stockholders | $ | 84,228 | |||
Weighted average shares outstanding | |||||
Basic | 49,296,417 | ||||
Diluted | 97,583,310 | ||||
Schedule of calculation of basic and diluted net income per share amounts | |||||
(In thousands except share amounts) | For the Period | ||||
February 11, 2014 | |||||
through | |||||
December 31, | |||||
2014 | |||||
Basic Net Income Per Share of Class A Common Stock | |||||
Numerator: | |||||
Net income attributable to Class A common shareholders | $ | 44,187 | |||
Denominator: | |||||
Weighted average number of shares of Class A common stock outstanding | 49,296,417 | ||||
Basic net income per share of Class A common stock | $ | 0.9 | |||
Diluted Net Income Per Share of Class A Common Stock | |||||
Numerator: | |||||
Net income attributable to Class A common shareholders | $ | 44,187 | |||
Add (deduct) - dilutive effect of: | |||||
Amounts attributable to operating partnership’s share of Ladder Capital Corp net income | 66,436 | ||||
Additional corporate tax | (26,395 | ) | |||
Diluted net income attributable to Class A common shareholders | $ | 84,228 | |||
Denominator: | |||||
Basic weighted average number of shares of Class A common stock outstanding | 49,296,417 | ||||
Add - dilutive effect of: | |||||
Shares issuable relating to converted Class B common shareholders | 48,145,875 | ||||
Incremental shares of unvested Class A restricted stock | 141,018 | ||||
Diluted weighted average number of shares of Class A common stock outstanding | 97,583,310 | ||||
Diluted net income per share of Class A common stock | $ | 0.86 | |||
STOCK_BASED_COMPENSATION_PLANS1
STOCK BASED COMPENSATION PLANS (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||
Summary of the grants | A summary of the grants is presented below: | ||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Number of | Weighted | Number of | Weighted | Number of | Weighted | ||||||||||||||||
Units | Average | Units | Average | Units | Average | ||||||||||||||||
Fair Value | Fair Value | Fair Value | |||||||||||||||||||
Grants - Class A Common Units | — | — | — | $ | — | 1,127,543 | $ | 1,360,106 | |||||||||||||
Grants - Series B Participating Preferred Units | — | — | 7,613 | $ | 1,157,176 | 31,452 | $ | 4,088,710 | |||||||||||||
Grants - Class A Common Stock (restricted) | 1,687,513 | 28,637,096 | — | — | — | — | |||||||||||||||
Amortization to compensation expense | |||||||||||||||||||||
Predecessor compensation expense | (290,171 | ) | (2,881,447 | ) | (2,407,773 | ) | |||||||||||||||
LP Units | (2,052,222 | ) | — | — | |||||||||||||||||
Class A Common Stock (restricted) | (12,108,371 | ) | — | — | |||||||||||||||||
Total amortization to compensation expense | $ | (14,450,764 | ) | $ | (2,881,447 | ) | $ | (2,407,773 | ) | ||||||||||||
Schedule of Nonvested Shares Activity | The table below presents the number of unvested shares at December 31, 2014 and changes during 2014 of the (i) Class A Common stock of Ladder Capital Corp granted under the 2014 Omnibus Incentive Plan (ii) Class A-2 Common Units and (iii) Series B Participating Preferred Units of LCFH granted under the 2008 Plan, which were subsequently converted to LP Units of LCFH in connection with the IPO. | ||||||||||||||||||||
Class A Common | Class A Common | Series B | LP Units | ||||||||||||||||||
Shares | Units | Participating | |||||||||||||||||||
Preferred Units | |||||||||||||||||||||
Outstanding at January 1, 2014 | — | 365,407 | 14,276 | — | |||||||||||||||||
Granted | 1,687,513 | — | — | — | |||||||||||||||||
Vested | — | (32,365 | ) | (1,158 | ) | (3,116,574 | ) | ||||||||||||||
Converted (1) | — | (333,042 | ) | (13,118 | ) | 3,186,066 | |||||||||||||||
Outstanding at December 31, 2014 | 1,687,513 | — | — | 69,492 | |||||||||||||||||
-1 | Converted to LP Units of LCFH on February 11, 2014 in connection with IPO and converted to an equal number of Series REIT LP Units and Series TRS LP Units on December 31, 2014. LCFH LP Unitholders also received an equal number of Class B Common shares of the Company in connection with the conversion. Refer to Note 1, Organization and Operations for further discussion of IPO and the Reorganization Transactions. |
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Income Tax Disclosure [Abstract] | |||||
Schedule of provision for income taxes | Components of the provision for income taxes consist of the following: | ||||
Year Ended December 31, 2014 | |||||
Current expense | |||||
Federal | $ | 23,608,814 | |||
State and local | 10,170,483 | ||||
Total current expense | 33,779,297 | ||||
Deferred expense/(benefit) | |||||
Federal | (4,356,908 | ) | |||
State and local | (2,817,613 | ) | |||
Total deferred expense/(benefit) | (7,174,521 | ) | |||
Provision for income tax expense | $ | 26,604,776 | |||
Schedule of reconciliation between the U.S. federal statutory income tax rate and the effective tax rate | A reconciliation between the U.S. federal statutory income tax rate and the effective tax rate for the year ended December 31, 2014 is as follows: | ||||
Year Ended December 31, 2014 | |||||
US statutory tax rate | 35 | % | |||
Benefit of partnership income not subject to taxation | (15.45 | )% | |||
Increase due to state and local taxes | 3.78 | % | |||
Other | (1.92 | )% | |||
Effective income tax rate | 21.41 | % | |||
Schedule of components of the Company's deferred tax assets and liabilities | The components of the Company’s deferred tax assets and liabilities are as follows: | ||||
December 31, 2014 | |||||
Deferred Tax Assets | |||||
Fixed assets | $ | 232,318 | |||
Equity based compensation | 694,356 | ||||
Unrealized gains and losses | 616,220 | ||||
Basis difference in Operating Partnership investment | 5,979,516 | ||||
Section 197 intangibles | 778,149 | ||||
Total Deferred Tax Assets | $ | 8,300,559 | |||
Deferred Tax Liabilities | |||||
Other | $ | 112,006 | |||
Total Deferred Tax Liabilities | $ | 112,006 | |||
Net Deferred Tax Assets/(Liabilities) | $ | 8,188,553 | |||
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Commitments and Contingencies Disclosure [Abstract] | |||||
Schedule of future minimum rental payments | The following is a schedule of future minimum rental payments required under the above operating leases: | ||||
Year ended December 31, | Amount | ||||
2015 | $ | 1,381,992 | |||
2016 | 1,125,069 | ||||
2017 | 1,180,400 | ||||
2018 | 1,180,400 | ||||
2019 | 1,180,400 | ||||
Thereafter | 2,459,167 | ||||
Total | $ | 8,507,428 | |||
SEGMENT_REPORTING_Tables
SEGMENT REPORTING (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||
Schedule of segment | The Company evaluates performance based on the following financial measures for each segment ($ in thousands): | |||||||||||||||||||
Loans | Securities | Real Estate(1) | Corporate/Other(2) | Company Total | ||||||||||||||||
Year Ended December 31, 2014 | ||||||||||||||||||||
Interest income | $ | 113,943 | $ | 73,331 | $ | — | $ | 51 | $ | 187,325 | ||||||||||
Interest expense | (13,205 | ) | (6,588 | ) | (15,984 | ) | (41,797 | ) | (77,574 | ) | ||||||||||
Net interest income (expense) | 100,738 | 66,743 | (15,984 | ) | (41,746 | ) | 109,751 | |||||||||||||
Provision for loan losses | (600 | ) | — | — | — | (600 | ) | |||||||||||||
Net interest income (expense) after provision for loan losses | 100,138 | 66,743 | (15,984 | ) | (41,746 | ) | 109,151 | |||||||||||||
Operating lease income | — | — | 56,649 | — | 56,649 | |||||||||||||||
Tenant recoveries | — | — | 9,183 | — | 9,183 | |||||||||||||||
Sale of loans, net | 145,275 | — | — | — | 145,275 | |||||||||||||||
Gain on securities | — | 26,977 | — | — | 26,977 | |||||||||||||||
Unrealized gain (loss) on Agency interest-only securities | — | 2,144 | — | — | 2,144 | |||||||||||||||
Sale of real estate, net | 1,525 | — | 28,235 | — | 29,760 | |||||||||||||||
Fee income | 3,854 | — | 5,374 | 2,476 | 11,704 | |||||||||||||||
Net result from derivative transactions | (34,599 | ) | (60,199 | ) | — | — | (94,798 | ) | ||||||||||||
Earnings from investment in unconsolidated joint ventures | — | — | 900 | 1,090 | 1,990 | |||||||||||||||
Gain on assignment of mortgage loan financing | — | — | 431 | — | 431 | |||||||||||||||
Loss on extinguishment of debt | — | — | — | (150 | ) | (150 | ) | |||||||||||||
Total other income | 116,055 | (31,078 | ) | 100,772 | 3,416 | 189,165 | ||||||||||||||
Salaries and employee benefits | (22,400 | ) | — | — | (59,744 | ) | (82,144 | ) | ||||||||||||
Operating expenses | 235 | — | — | (25,633 | ) | (25,398 | ) | |||||||||||||
Real estate operating expenses | — | — | (32,670 | ) | — | (32,670 | ) | |||||||||||||
Real estate acquisition costs | — | — | (2,399 | ) | (4 | ) | (2,403 | ) | ||||||||||||
Fee expense | (2,172 | ) | (65 | ) | (83 | ) | (703 | ) | (3,023 | ) | ||||||||||
Depreciation and amortization | — | — | (28,271 | ) | (176 | ) | (28,447 | ) | ||||||||||||
Total costs and expenses | (24,337 | ) | (65 | ) | (63,423 | ) | (86,260 | ) | (174,085 | ) | ||||||||||
Tax expense | — | — | — | (26,605 | ) | (26,605 | ) | |||||||||||||
Segment profit (loss) | $ | 191,856 | $ | 35,600 | $ | 21,365 | $ | (151,195 | ) | $ | 97,626 | |||||||||
Total assets as of December 31, 2014 | $ | 1,939,008 | $ | 2,815,566 | $ | 771,129 | $ | 297,958 | $ | 5,823,661 | ||||||||||
Loans | Securities | Real Estate(1) | Corporate/Other(2) | Company Total | ||||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||
Interest income | $ | 63,894 | $ | 57,636 | $ | — | $ | 48 | $ | 121,578 | ||||||||||
Interest expense | (4,592 | ) | (3,289 | ) | (7,673 | ) | (33,191 | ) | (48,745 | ) | ||||||||||
Net interest income (expense) | 59,302 | 54,347 | (7,673 | ) | (33,143 | ) | 72,833 | |||||||||||||
Provision for loan losses | (600 | ) | — | — | — | (600 | ) | |||||||||||||
Net interest income (expense) after provision for loan losses | 58,702 | 54,347 | (7,673 | ) | (33,143 | ) | 72,233 | |||||||||||||
Operating lease income | — | — | 37,394 | — | 37,394 | |||||||||||||||
Tenant recoveries | — | — | 3,271 | — | 3,271 | |||||||||||||||
Sale of loans, net | 146,708 | — | — | — | 146,708 | |||||||||||||||
Gain on securities | — | 4,231 | — | — | 4,231 | |||||||||||||||
Unrealized gain (loss) on Agency interest-only securities | — | (2,665 | ) | — | — | (2,665 | ) | |||||||||||||
Sale of real estate, net | — | — | 13,565 | — | 13,565 | |||||||||||||||
Fee income | 2,963 | 195 | 312 | 4,452 | 7,922 | |||||||||||||||
Net result from derivative transactions | 15,836 | 12,239 | — | — | 28,075 | |||||||||||||||
Earnings from investment in unconsolidated joint ventures | — | — | — | 3,203 | 3,203 | |||||||||||||||
Total other income | 165,507 | 14,000 | 54,542 | 7,655 | 241,704 | |||||||||||||||
Salaries and employee benefits | (26,250 | ) | — | — | (34,788 | ) | (61,038 | ) | ||||||||||||
Operating expenses | 201 | — | (7 | ) | (15,131 | ) | (14,937 | ) | ||||||||||||
Real estate operating expenses | — | — | (17,404 | ) | — | (17,404 | ) | |||||||||||||
Real estate acquisition costs | — | — | (3,626 | ) | — | (3,626 | ) | |||||||||||||
Fee expense | (1,981 | ) | (375 | ) | (33 | ) | (566 | ) | (2,955 | ) | ||||||||||
Depreciation and amortization | — | — | (20,967 | ) | (547 | ) | (21,514 | ) | ||||||||||||
Total costs and expenses | (28,030 | ) | (375 | ) | (42,037 | ) | (51,032 | ) | (121,474 | ) | ||||||||||
Tax expense | — | — | — | (3,730 | ) | (3,730 | ) | |||||||||||||
Segment profit (loss) | $ | 196,179 | $ | 67,972 | $ | 4,832 | $ | (80,250 | ) | $ | 188,733 | |||||||||
Total assets as of December 31, 2013 | $ | 979,568 | $ | 1,657,246 | $ | 626,362 | $ | 225,887 | $ | 3,489,063 | ||||||||||
Year Ended December 31, 2012 | ||||||||||||||||||||
Interest income | $ | 56,835 | $ | 80,613 | $ | — | $ | (1,250 | ) | $ | 136,198 | |||||||||
Interest expense | (9,212 | ) | (15,807 | ) | (3,595 | ) | (7,826 | ) | (36,440 | ) | ||||||||||
Net interest income (expense) | 47,623 | 64,806 | (3,595 | ) | (9,076 | ) | 99,758 | |||||||||||||
Provision for loan losses | (449 | ) | — | — | — | (449 | ) | |||||||||||||
Net interest income (expense) after provision for loan losses | 47,174 | 64,806 | (3,595 | ) | (9,076 | ) | 99,309 | |||||||||||||
Operating lease income | — | — | 8,331 | — | 8,331 | |||||||||||||||
Sale of loans, net | 151,661 | — | — | — | 151,661 | |||||||||||||||
Gain on securities | — | 19,014 | — | — | 19,014 | |||||||||||||||
Unrealized gain (loss) on Agency interest-only securities | — | (5,681 | ) | — | — | (5,681 | ) | |||||||||||||
Sale of real estate, net | — | — | 1,275 | — | 1,275 | |||||||||||||||
Loans | Securities | Real Estate(1) | Corporate/Other(2) | Company Total | ||||||||||||||||
Fee income | 6,886 | 251 | 823 | 828 | 8,788 | |||||||||||||||
Net result from derivative transactions | (25,236 | ) | (10,415 | ) | — | — | (35,651 | ) | ||||||||||||
Earnings from investment in unconsolidated joint ventures | — | — | — | 1,256 | 1,256 | |||||||||||||||
Total other income | 133,311 | 3,169 | 10,429 | 2,084 | 148,993 | |||||||||||||||
Salaries and employee benefits | (21,500 | ) | — | — | (29,590 | ) | (51,090 | ) | ||||||||||||
Operating expenses | — | — | (672 | ) | (8,900 | ) | (9,572 | ) | ||||||||||||
Real estate acquisition costs | — | — | (5,797 | ) | — | (5,797 | ) | |||||||||||||
Fee expense | (5,635 | ) | (107 | ) | (128 | ) | (294 | ) | (6,164 | ) | ||||||||||
Depreciation and amortization | — | — | (3,093 | ) | (548 | ) | (3,641 | ) | ||||||||||||
Total costs and expenses | (27,135 | ) | (107 | ) | (9,690 | ) | (39,332 | ) | (76,264 | ) | ||||||||||
Tax expense | — | — | — | (2,584 | ) | (2,584 | ) | |||||||||||||
Segment profit (loss) | $ | 153,350 | $ | 67,868 | $ | (2,856 | ) | $ | (48,908 | ) | $ | 169,454 | ||||||||
-1 | Includes the Company’s investment in unconsolidated joint ventures that hold real estate of $2.1 million and $2.1 million as of December 31, 2014 and 2013, respectively. | |||||||||||||||||||
-2 | Corporate/Other represents all corporate level and unallocated items including any intercompany eliminations necessary to reconcile to combined consolidated Company totals. This caption also includes the Company’s investment in unconsolidated joint ventures and strategic investments that are not related to the other reportable segments above, including the Company’s investment in unconsolidated joint ventures of $3.9 million and $7.1 million as of December 31, 2014 and 2013, respectively, the Company’s investment in FHLB stock of $72.3 million and $49.5 million as of December 31, 2014 and 2013, respectively and the Company’s DTA of $8.3 million as of December 31, 2014 and none as of December 31, 2013. |
SELECTED_QUARTERLY_DATA_UNAUDI1
SELECTED QUARTERLY DATA (UNAUDITED) (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||
Schedule of quarterly consolidated financial data | The following summarizes the combined consolidated quarterly financial information for the Company ($ in thousands except per share amounts): | ||||||||||||||||
Q4 2014 | Q3 2014 | Q2 2014 | Q1 2014 | ||||||||||||||
Net Interest income | $ | 56,931 | $ | 48,459 | $ | 45,112 | $ | 36,822 | |||||||||
Net interest income after provision for loan losses | 30,728 | 28,381 | 28,211 | 21,831 | |||||||||||||
Other income | 31,906 | 61,337 | 55,489 | 40,434 | |||||||||||||
Costs and expenses | 48,045 | 42,207 | 45,258 | 38,575 | |||||||||||||
Income before taxes | 14,589 | 47,511 | 38,442 | 23,690 | |||||||||||||
Net income | 11,806 | 37,176 | 30,243 | 18,401 | |||||||||||||
Net (income) loss attributable to noncontrolling interest in consolidated joint ventures | (83 | ) | 306 | (46 | ) | 192 | |||||||||||
Net (income) loss attributable to predecessor unitholders | — | — | — | 12,628 | |||||||||||||
Net (income) loss attributable to noncontrolling interest in operating partnership | (7,350 | ) | (22,827 | ) | (17,691 | ) | (18,568 | ) | |||||||||
Net income attributable to Class A common shareholders | 4,374 | 14,656 | 12,505 | 12,652 | |||||||||||||
Earnings per share: | |||||||||||||||||
Basic | $ | 0.09 | $ | 0.3 | $ | 0.26 | $ | 0.26 | |||||||||
Diluted | $ | 0.09 | $ | 0.28 | $ | 0.22 | $ | 0.24 | |||||||||
Q4 2013 | Q3 2013 | Q2 2013 | Q1 2013 | ||||||||||||||
Interest income | $ | 30,516 | $ | 29,633 | $ | 30,168 | $ | 31,261 | |||||||||
Net interest income after provision for loan losses | 17,324 | 16,929 | 18,076 | 19,904 | |||||||||||||
Other income | 36,227 | 35,525 | 70,346 | 99,606 | |||||||||||||
Costs and expenses | 33,528 | 30,603 | 27,951 | 29,393 | |||||||||||||
Income before taxes | 20,023 | 21,851 | 60,471 | 90,117 | |||||||||||||
Net income | 19,744 | 21,187 | 59,752 | 88,050 | |||||||||||||
Net (income) loss attributable to noncontrolling interest in consolidated joint ventures | 1,796 | (1,025 | ) | 354 | (27 | ) | |||||||||||
Net income attributable to predecessor unitholders | 21,540 | 20,162 | 60,107 | 88,023 | |||||||||||||
ORGANIZATION_AND_OPERATIONS_De
ORGANIZATION AND OPERATIONS (Details) (USD $) | 11 Months Ended | 0 Months Ended | 12 Months Ended | |
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Feb. 11, 2014 | Dec. 31, 2014 | Feb. 10, 2014 |
Class_of_Stock | ||||
ORGANIZATION AND OPERATIONS | ||||
Number of classes of membership interests prior to the Reorganization Transactions | 3 | |||
Share price used in the conversion of the three classes of membership (in dollars per share) | $17 | |||
Ownership restriction, maximum percentage of outstanding capital stock | 9.80% | 9.80% | ||
Percentage of applicable cash saving in income tax distributable to specified unitholders | 85.00% | |||
Percentage of applicable cash saving in income tax available for the entity | 15.00% | |||
LCFH | ||||
ORGANIZATION AND OPERATIONS | ||||
Economic interest (as a percent) | 51.00% | |||
Units outstanding | 99,134,619 | |||
Units held by company | 50,597,205 | |||
Units held by the Continuing the Company Limited Partners | 48,537,414 | |||
Series REIT | ||||
ORGANIZATION AND OPERATIONS | ||||
Economic interest (as a percent) | 51.90% | |||
Limited partners ownership interest (in percent) | 48.10% | |||
Class A common stock | ||||
ORGANIZATION AND OPERATIONS | ||||
Shares issued to the investors | 15,237,500 | |||
Shares sold as a result of the exercise of the underwriter's over-allotment option | 1,987,500 | |||
Net proceeds after deducting fees and expenses associated with the IPO | 238.5 | |||
Shares issued to certain directors, officers and employees | 1,687,513 | |||
Shares outstanding | 51,431,872 | 50,597,205 | 51,431,872 | |
Shares issued to the Exchanging Existing Owners | 33,672,192 | |||
Class A common stock | LCFH | ||||
ORGANIZATION AND OPERATIONS | ||||
Shares received by Exchanging Existing Owners in lieu of any or all LP Units and shares of Class B common stock | 33,672,192 | |||
Number of LP unit for each share issued to the Exchanging Existing Owners | 1 | |||
Stock exchange ratio | 1 | 1 | ||
Class B common stock | ||||
ORGANIZATION AND OPERATIONS | ||||
Shares outstanding | 47,647,023 | 48,537,414 | 47,647,023 | |
LCFH | Series REIT | ||||
ORGANIZATION AND OPERATIONS | ||||
Ownership interest in subsidiaries (in percent) | 100.00% | |||
LCFH | Series TRS | ||||
ORGANIZATION AND OPERATIONS | ||||
Ownership interest in subsidiaries (in percent) | 100.00% |
SIGNIFICANT_ACCOUNTING_POLICIE3
SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $) | 11 Months Ended | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |
loan | loan | ||
Basis of accounting and principles of combination and consolidation | |||
Maximum cash amount insured at several financial institutions | $250,000 | 250,000 | $250,000 |
Number of mortgage loans impaired | 0 | 0 | 0 |
Percentage of applicable cash saving in income tax distributable to specified unitholders | 85.00% | ||
Percentage of applicable cash saving in income tax available for the entity | 15.00% | ||
Percentage of CMBS portfolio with below AA rating | 6.10% | 6.10% | |
Other Assets | |||
Basis of accounting and principles of combination and consolidation | |||
Tenant security deposits | 24,406,731 | 24,406,731 | 14,786,027 |
Maximum | |||
Basis of accounting and principles of combination and consolidation | |||
Expected term for completion of disposal | 1 year | ||
Building | Maximum | |||
Basis of accounting and principles of combination and consolidation | |||
Estimated useful lives of real estate | 47 years | ||
Building | Minimum | |||
Basis of accounting and principles of combination and consolidation | |||
Estimated useful lives of real estate | 20 years | ||
Building Fixtures and Building Improvements | Maximum | |||
Basis of accounting and principles of combination and consolidation | |||
Estimated useful lives of real estate | 15 years | ||
Building Fixtures and Building Improvements | Minimum | |||
Basis of accounting and principles of combination and consolidation | |||
Estimated useful lives of real estate | 4 years | ||
Calculating Depreciation and Amortization | |||
Basis of accounting and principles of combination and consolidation | |||
Out-of-period adjustments recorded | 1,200,000 |
SIGNIFICANT_ACCOUNTING_POLICIE4
SIGNIFICANT ACCOUNTING POLICIES - Schedule of Reclassification of Cash Flows (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Net cash provided by (used in) operating activities | $208,671,928 | $476,982,334 | ($116,006,932) |
Net cash provided by (used in) investing activities | -2,369,462,954 | -1,083,768,581 | 288,106,414 |
Net cash provided by (used in) financing activities | 2,158,266,743 | 640,349,939 | -211,272,029 |
As Originally Reported | |||
Net cash provided by (used in) operating activities | 466,733,451 | -111,366,746 | |
Net cash provided by (used in) investing activities | -1,073,499,698 | 283,692,453 | |
Net cash provided by (used in) financing activities | 640,329,939 | -211,498,254 | |
Reclassification | |||
Net cash provided by (used in) operating activities | 10,249,000 | -4,640,000 | |
Net cash provided by (used in) investing activities | -10,269,000 | 4,414,000 | |
Net cash provided by (used in) financing activities | $20,000 | $226,000 |
MORTGAGE_LOAN_RECEIVABLES_Deta
MORTGAGE LOAN RECEIVABLES (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
loan | loan | |
Mortgage Loans on Real Estate [Line Items] | ||
Carrying amount of transfers accounted for as secured borrowings assets | $996,650 | |
Number of mortgage loans impaired | 0 | 0 |
Unamortized discounts included in mortgage loan receivables held for investment, at amortized cost | 4,195,927 | 4,273,890 |
Carrying value, net | 1,939,008,132 | 979,567,971 |
Mortgage loan receivables held for investment, at amortized cost | ||
Mortgage Loans on Real Estate [Line Items] | ||
Carrying value, net | 1,521,053,375 | 539,078,182 |
Loan on non-accrual status | ||
Mortgage Loans on Real Estate [Line Items] | ||
Unamortized discounts included in mortgage loan receivables held for investment, at amortized cost | 3,452,500 | 3,452,500 |
Number of loans on non-accrual status | 1 | 1 |
Carrying value, net | $4,620,000 | $4,620,000 |
MORTGAGE_LOAN_RECEIVABLES_Sche
MORTGAGE LOAN RECEIVABLES - Schedule of Mortgage Loans (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Mortgage Loans on Real Estate [Line Items] | ||||
Outstanding Face Amount | $1,954,877,571 | $990,348,577 | ||
Provision for loan losses | -3,100,000 | -2,500,000 | -1,900,000 | -1,451,167 |
Carrying Value | 1,939,008,132 | 979,567,971 | ||
Loans receivable with fixed rates of interest | 231,938,111 | 421,824,981 | ||
Percentage of loans receivable with fixed rates of interest | 15.20% | 77.90% | ||
Mortgage loan receivables held for investment, at amortized cost | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Outstanding Face Amount | 1,536,922,814 | 549,573,788 | ||
Carrying Value, gross | 1,524,153,375 | 541,578,182 | ||
Provision for loan losses | -3,100,000 | -2,500,000 | ||
Carrying Value | 1,521,053,375 | 539,078,182 | ||
Weighted Average Yield (as a percent) | 7.33% | 9.76% | ||
Remaining Maturity | 1 year 11 months 15 days | 2 years 1 month 20 days | ||
Loans receivable with fixed rates of interest | 1,292,215,264 | 119,753,201 | ||
Percentage of loans receivable with fixed rates of interest | 84.80% | 22.10% | ||
Mortgage loan receivables held for sale | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Outstanding Face Amount | 417,954,757 | 440,774,789 | ||
Carrying Value | 417,954,757 | 440,489,789 | ||
Weighted Average Yield (as a percent) | 4.31% | 5.47% | ||
Remaining Maturity | 9 years 8 months 19 days | 9 years 7 months 13 days | ||
Loans receivable with fixed rates of interest | $417,954,757 | $440,489,789 | ||
Percentage of loans receivable with fixed rates of interest | 100.00% | 100.00% |
MORTGAGE_LOAN_RECEIVABLES_Mort
MORTGAGE LOAN RECEIVABLES - Mortgage Loan Receivables by Loan Type (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Mortgage Loans on Real Estate [Line Items] | ||||
Outstanding Face Amount | $1,954,877,571 | $990,348,577 | ||
Provision for loan losses | -3,100,000 | -2,500,000 | -1,900,000 | -1,451,167 |
Carrying Value | 1,939,008,132 | 979,567,971 | ||
First mortgage loan, held for sale | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Outstanding Face Amount | 417,954,757 | 440,774,789 | ||
Carrying Value | 417,954,757 | 440,489,789 | ||
Mortgage loan receivables held for sale | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Outstanding Face Amount | 417,954,757 | 440,774,789 | ||
Carrying Value | 417,954,757 | 440,489,789 | ||
First mortgage loan, held for investment | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Outstanding Face Amount | 1,373,476,221 | 420,672,555 | ||
Carrying Value, Gross | 1,361,754,632 | 413,564,066 | ||
Mezzanine loan | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Outstanding Face Amount | 163,446,593 | 128,901,233 | ||
Carrying Value, Gross | 162,398,743 | 128,014,116 | ||
Mortgage loan receivables held for investment | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Outstanding Face Amount | 1,536,922,814 | 549,573,788 | ||
Carrying Value, Gross | 1,524,153,375 | 541,578,182 | ||
Provision for loan losses | -3,100,000 | -2,500,000 | ||
Carrying Value | $1,521,053,375 | $539,078,182 |
MORTGAGE_LOAN_RECEIVABLES_Acti
MORTGAGE LOAN RECEIVABLES - Activity in Loan Portfolio (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Activity in loan portfolio | |||
Balance at the beginning of the period | $979,568,000 | $949,652,000 | $514,038,000 |
Origination of mortgage loan receivables | 4,547,340,000 | 2,499,746,000 | 2,378,086,000 |
Repayment of mortgage loan receivables | -215,804,000 | -273,933,000 | -280,568,000 |
Proceeds from sales of mortgage loan receivables | -3,523,688,000 | -2,345,705,000 | -1,815,996,000 |
Realized gain on sale of mortgage loan receivables | 145,274,603 | 146,708,264 | 151,661,150 |
Transfer between held for investment and held for sale | 0 | 0 | 0 |
Accretion/amortization of discount, premium and other fees | 6,918,000 | 3,700,000 | 2,879,000 |
Loan loss provision | -600,000 | -600,000 | -448,833 |
Balance at the end of the period | 1,939,008,000 | 979,568,000 | 949,652,000 |
Mortgage loan receivables held for sale | |||
Activity in loan portfolio | |||
Balance at the beginning of the period | 440,489,789 | 623,332,620 | 258,841,725 |
Origination of mortgage loan receivables | 3,345,371,937 | 2,013,674,038 | 2,036,138,933 |
Repayment of mortgage loan receivables | -1,293,262 | -5,840,419 | -75,654,634 |
Proceeds from sales of mortgage loan receivables | -3,523,688,310 | -2,345,704,987 | -1,815,995,772 |
Realized gain on sale of mortgage loan receivables | 145,274,603 | 146,708,264 | 151,661,150 |
Transfer between held for investment and held for sale | 11,800,000 | 8,320,273 | 68,080,932 |
Accretion/amortization of discount, premium and other fees | 0 | 0 | 260,286 |
Loan loss provision | 0 | 0 | 0 |
Balance at the end of the period | 417,954,757 | 440,489,789 | 623,332,620 |
Mortgage loan receivables held for investment, at amortized cost | |||
Activity in loan portfolio | |||
Balance at the beginning of the period | 539,078,182 | 326,318,550 | 255,196,384 |
Origination of mortgage loan receivables | 1,201,968,254 | 486,072,238 | 341,947,392 |
Repayment of mortgage loan receivables | -214,510,727 | -268,093,305 | -204,913,202 |
Proceeds from sales of mortgage loan receivables | 0 | 0 | 0 |
Realized gain on sale of mortgage loan receivables | 0 | 0 | 0 |
Transfer between held for investment and held for sale | -11,800,000 | -8,320,273 | -68,080,932 |
Accretion/amortization of discount, premium and other fees | 6,917,666 | 3,700,972 | 2,617,741 |
Loan loss provision | -600,000 | -600,000 | -448,833 |
Balance at the end of the period | $1,521,053,375 | $539,078,182 | $326,318,550 |
MORTGAGE_LOAN_RECEIVABLES_Prov
MORTGAGE LOAN RECEIVABLES - Provision for Loan Losses (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Allowance for Loan and Lease Losses [Roll Forward] | |||
Provision for loan losses at beginning of period | $2,500,000 | $1,900,000 | $1,451,167 |
Provision for loan losses | 600,000 | 600,000 | 448,833 |
Charge-offs | 0 | 0 | 0 |
Provision for loan losses at end of period | $3,100,000 | $2,500,000 | $1,900,000 |
REAL_ESTATE_SECURITIES_Summary
REAL ESTATE SECURITIES - Summary of Securities (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
securities | securities | |
Schedule of Available-for-sale Securities [Line Items] | ||
Outstanding Face Amount | $10,950,979,000 | $9,052,718,000 |
Amortized Cost Basis | 2,786,317,000 | 1,648,124,000 |
Gross Unrealized Gains | 33,222,000 | 20,463,000 |
Gross Unrealized Losses | -3,973,000 | -11,341,000 |
Fair value of real estate securities | 2,815,565,541 | 1,657,246,194 |
CMBS | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Outstanding Face Amount | 2,247,565,000 | 1,160,741,000 |
Amortized Cost Basis | 2,277,995,000 | 1,156,230,000 |
Gross Unrealized Gains | 28,453,000 | 13,853,000 |
Gross Unrealized Losses | -1,038,000 | -5,147,000 |
Fair value of real estate securities | 2,305,410,000 | 1,164,936,000 |
# of Securities | 145 | 101 |
Weighted Average Coupon % | 3.31% | 4.24% |
Weighted Average Yield % | 2.60% | 4.08% |
Remaining Duration | 4 years 2 months 23 days | 4 years 10 months 17 days |
CMBS interest-only | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Outstanding Face Amount | 7,239,503,000 | 5,702,862,000 |
Amortized Cost Basis | 376,085,000 | 256,869,000 |
Gross Unrealized Gains | 2,973,000 | 2,204,000 |
Gross Unrealized Losses | -723,000 | -1,015,000 |
Fair value of real estate securities | 378,335,000 | 258,058,000 |
# of Securities | 41 | 21 |
Weighted Average Coupon % | 1.04% | 1.00% |
Weighted Average Yield % | 4.88% | 4.19% |
Remaining Duration | 3 years 5 months 12 days | 3 years 4 months 17 days |
GNMA interest-only | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Outstanding Face Amount | 1,400,141,000 | 1,848,270,000 |
Amortized Cost Basis | 67,544,000 | 103,136,000 |
Gross Unrealized Gains | 1,035,000 | 1,630,000 |
Gross Unrealized Losses | -1,937,000 | -4,889,000 |
Fair value of real estate securities | 66,642,000 | 99,877,000 |
# of Securities | 34 | 36 |
Weighted Average Coupon % | 0.85% | 1.12% |
Weighted Average Yield % | 5.90% | 5.32% |
Remaining Duration | 4 years 6 months | 2 years 1 month 13 days |
FHLMC interest-only | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Outstanding Face Amount | 219,677,000 | |
Amortized Cost Basis | 7,904,000 | |
Gross Unrealized Gains | 248,000 | |
Gross Unrealized Losses | 0 | |
Fair value of real estate securities | 8,152,000 | |
# of Securities | 2 | |
Weighted Average Coupon % | 0.95% | |
Weighted Average Yield % | 5.21% | |
Remaining Duration | 3 years 14 days | |
GN construction securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Outstanding Face Amount | 27,538,000 | 12,858,000 |
Amortized Cost Basis | 28,178,000 | 13,261,000 |
Gross Unrealized Gains | 503,000 | 36,000 |
Gross Unrealized Losses | -275,000 | -290,000 |
Fair value of real estate securities | 28,406,000 | 13,007,000 |
# of Securities | 4 | 8 |
Weighted Average Coupon % | 3.89% | 4.11% |
Weighted Average Yield % | 3.56% | 3.49% |
Remaining Duration | 9 years 5 months 1 day | 6 years 6 months 25 days |
GN permanent securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Outstanding Face Amount | 36,232,000 | 108,310,000 |
Amortized Cost Basis | 36,515,000 | 110,724,000 |
Gross Unrealized Gains | 258,000 | 2,492,000 |
Gross Unrealized Losses | 0 | 0 |
Fair value of real estate securities | $36,773,000 | $113,216,000 |
# of Securities | 11 | 14 |
Weighted Average Coupon % | 5.49% | 5.53% |
Weighted Average Yield % | 4.94% | 4.64% |
Remaining Duration | 1 year 3 months 25 days | 3 years 3 months 7 days |
REAL_ESTATE_SECURITIES_Securit
REAL ESTATE SECURITIES - Securities by Remaining Maturity (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Within 1 year | $502,019,000 | $245,500,000 | |
1-5 years | 1,237,641,000 | 761,205,000 | |
5-10 years | 1,053,190,000 | 643,851,000 | |
After 10 years | 22,716,000 | 6,690,000 | |
Fair value of real estate securities | 2,815,565,541 | 1,657,246,194 | |
Other than temporary impairments included in consolidated statements of income | 3,939,273 | 2,469,845 | 0 |
CMBS | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Within 1 year | 474,357,000 | 175,042,000 | |
1-5 years | 814,702,000 | 390,116,000 | |
5-10 years | 1,016,351,000 | 599,778,000 | |
After 10 years | 0 | 0 | |
Fair value of real estate securities | 2,305,410,000 | 1,164,936,000 | |
CMBS interest-only | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Within 1 year | 391,000 | 7,482,000 | |
1-5 years | 370,993,000 | 250,576,000 | |
5-10 years | 6,951,000 | 0 | |
After 10 years | 0 | 0 | |
Fair value of real estate securities | 378,335,000 | 258,058,000 | |
GNMA interest-only | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Within 1 year | 1,356,000 | 371,000 | |
1-5 years | 42,105,000 | 94,001,000 | |
5-10 years | 23,181,000 | 5,505,000 | |
After 10 years | 0 | 0 | |
Fair value of real estate securities | 66,642,000 | 99,877,000 | |
FHLMC interest-only | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Within 1 year | 0 | ||
1-5 years | 8,152,000 | ||
5-10 years | 0 | ||
After 10 years | 0 | ||
Fair value of real estate securities | 8,152,000 | ||
GN construction securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Within 1 year | 0 | 0 | |
1-5 years | 507,000 | 3,280,000 | |
5-10 years | 5,183,000 | 9,727,000 | |
After 10 years | 22,716,000 | 0 | |
Fair value of real estate securities | 28,406,000 | 13,007,000 | |
GN permanent securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Within 1 year | 25,915,000 | 62,605,000 | |
1-5 years | 9,334,000 | 15,080,000 | |
5-10 years | 1,524,000 | 28,841,000 | |
After 10 years | 0 | 6,690,000 | |
Fair value of real estate securities | $36,773,000 | $113,216,000 |
REAL_ESTATE_AND_RELATED_LEASE_2
REAL ESTATE AND RELATED LEASE INTANGIBLES, NET (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Real Estate [Abstract] | |||||||||||
Noncontrolling Interest in Net Income (Loss) Joint Venture Partners, Nonredeemable | $83,000 | ($306,000) | $46,000 | ($192,000) | ($1,796,000) | $1,025,000 | ($354,000) | $27,000 | ($368,670) | ($1,098,150) | ($49,084) |
Gross intangible assets | 127,359,203 | 83,909,105 | 127,359,203 | 83,909,105 | |||||||
Accumulated amortization | 19,892,779 | 9,675,249 | 19,892,779 | 9,675,249 | |||||||
Net intangible assets | 107,466,424 | 74,233,856 | 107,466,424 | 74,233,856 | |||||||
Unamortized favorable/unfavorable lease intangibles | -269,850 | -269,850 | |||||||||
Adjustment against operating lease income for favorable/unfavorable leases | 652,065 | 853,917 | |||||||||
Unbilled rent receivables | 3,012,668 | 1,844,916 | 3,012,668 | 1,844,916 | |||||||
Unencumbered real estates | $85,700,000 | $143,100,000 | $85,700,000 | $143,100,000 |
REAL_ESTATE_AND_RELATED_LEASE_3
REAL ESTATE AND RELATED LEASE INTANGIBLES, NET - Schedule of Real Estate Properties Acquired (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Business Acquisition [Line Items] | |||
Purchase Price | $254,497,000 | $289,268,000 | $428,651,000 |
Land | 41,908,000 | 37,579,000 | 61,265,000 |
Building | 168,714,000 | 206,688,000 | 333,878,000 |
Intangibles | 43,875,000 | 45,001,000 | 33,508,000 |
O'Fallon, IL | Retail property | |||
Business Acquisition [Line Items] | |||
Purchase Price | 8,001,000 | ||
Land | 2,488,000 | ||
Building | 5,388,000 | ||
Intangibles | 125,000 | ||
Properties | 1 | ||
Ownership interest (percent) | 100.00% | ||
El Centro, CA | Retail property | |||
Business Acquisition [Line Items] | |||
Purchase Price | 4,277,000 | ||
Land | 569,000 | ||
Building | 3,133,000 | ||
Intangibles | 575,000 | ||
Properties | 1 | ||
Ownership interest (percent) | 100.00% | ||
Richmond, VA | Office building | |||
Business Acquisition [Line Items] | |||
Purchase Price | 19,850,000 | 134,999,000 | |
Land | 4,539,000 | 15,904,000 | |
Building | 12,633,000 | 99,375,000 | |
Intangibles | 2,678,000 | 19,720,000 | |
Properties | 7 | 14 | |
Ownership interest (percent) | 77.50% | 77.50% | |
Conyers, GA | Industrial Property | |||
Business Acquisition [Line Items] | |||
Purchase Price | 32,530,000 | ||
Land | 876,000 | ||
Building | 27,396,000 | ||
Intangibles | 4,258,000 | ||
Properties | 1 | ||
Ownership interest (percent) | 100.00% | ||
St. Paul, MN | Office building | |||
Business Acquisition [Line Items] | |||
Purchase Price | 62,340,000 | ||
Land | 9,415,000 | ||
Building | 33,682,000 | ||
Intangibles | 19,243,000 | ||
Properties | 4 | ||
Ownership interest (percent) | 97.00% | ||
Bennett, CO | Retail property | |||
Business Acquisition [Line Items] | |||
Purchase Price | 3,522,000 | ||
Land | 470,000 | ||
Building | 2,503,000 | ||
Intangibles | 549,000 | ||
Properties | 1 | ||
Ownership interest (percent) | 100.00% | ||
Memphis, TN | Retail property | |||
Business Acquisition [Line Items] | |||
Purchase Price | 5,310,000 | ||
Land | 1,986,000 | ||
Building | 2,800,000 | ||
Intangibles | 524,000 | ||
Properties | 1 | ||
Ownership interest (percent) | 100.00% | ||
Ankemy, IA | Retail property | |||
Business Acquisition [Line Items] | |||
Purchase Price | 16,510,000 | ||
Land | 3,180,000 | ||
Building | 10,513,000 | ||
Intangibles | 2,817,000 | ||
Properties | 1 | ||
Ownership interest (percent) | 100.00% | ||
Springfield, MO | Retail property | |||
Business Acquisition [Line Items] | |||
Purchase Price | 11,675,000 | ||
Land | 3,658,000 | ||
Building | 6,296,000 | ||
Intangibles | 1,721,000 | ||
Properties | 1 | ||
Ownership interest (percent) | 100.00% | ||
Sheldon, IA | Retail property | |||
Business Acquisition [Line Items] | |||
Purchase Price | 4,300,000 | ||
Land | 633,000 | ||
Building | 3,053,000 | ||
Intangibles | 614,000 | ||
Properties | 1 | ||
Ownership interest (percent) | 100.00% | ||
Cedar Rapid, IA | Retail property | |||
Business Acquisition [Line Items] | |||
Purchase Price | 11,000,000 | ||
Land | 1,569,000 | ||
Building | 7,553,000 | ||
Intangibles | 1,878,000 | ||
Properties | 1 | ||
Ownership interest (percent) | 100.00% | ||
Fairfield, IA | Retail property | |||
Business Acquisition [Line Items] | |||
Purchase Price | 10,695,000 | ||
Land | 1,132,000 | ||
Building | 7,779,000 | ||
Intangibles | 1,784,000 | ||
Properties | 1 | ||
Ownership interest (percent) | 100.00% | ||
Muscatine, IA | Retail property | |||
Business Acquisition [Line Items] | |||
Purchase Price | 7,150,000 | ||
Land | 1,060,000 | ||
Building | 6,636,000 | ||
Intangibles | -546,000 | ||
Properties | 1 | ||
Ownership interest (percent) | 100.00% | ||
Owatonna, MN | Retail property | |||
Business Acquisition [Line Items] | |||
Purchase Price | 9,969,000 | ||
Land | 1,398,000 | ||
Building | 7,125,000 | ||
Intangibles | 1,446,000 | ||
Properties | 1 | ||
Ownership interest (percent) | 100.00% | ||
Bellport, NY | Retail property | |||
Business Acquisition [Line Items] | |||
Purchase Price | 18,100,000 | ||
Land | 3,601,000 | ||
Building | 12,465,000 | ||
Intangibles | 2,034,000 | ||
Properties | 1 | ||
Ownership interest (percent) | 100.00% | ||
Woodland Park, CO | Retail property | |||
Business Acquisition [Line Items] | |||
Purchase Price | 3,969,000 | ||
Land | 668,000 | ||
Building | 2,681,000 | ||
Intangibles | 620,000 | ||
Properties | 1 | ||
Ownership interest (percent) | 100.00% | ||
Evansville, IN | Retail property | |||
Business Acquisition [Line Items] | |||
Purchase Price | 9,000,000 | ||
Land | 1,788,000 | ||
Building | 6,348,000 | ||
Intangibles | 864,000 | ||
Properties | 1 | ||
Ownership interest (percent) | 100.00% | ||
Plattsmouth, NE | Retail property | |||
Business Acquisition [Line Items] | |||
Purchase Price | 7,979,000 | ||
Land | 1,446,000 | ||
Building | 5,220,000 | ||
Intangibles | 1,313,000 | ||
Properties | 1 | ||
Ownership interest (percent) | 100.00% | ||
Worthington, MN | Retail property | |||
Business Acquisition [Line Items] | |||
Purchase Price | 8,320,000 | ||
Land | 1,432,000 | ||
Building | 5,510,000 | ||
Intangibles | 1,378,000 | ||
Properties | 1 | ||
Ownership interest (percent) | 100.00% | ||
Durant, OK | Retail property | |||
Business Acquisition [Line Items] | |||
Purchase Price | 4,991,000 | ||
Land | 594,000 | ||
Building | 3,900,000 | ||
Intangibles | 497,000 | ||
Properties | 1 | ||
Ownership interest (percent) | 100.00% | ||
Southfield, MI | Office building | |||
Business Acquisition [Line Items] | |||
Purchase Price | 18,000,000 | ||
Land | 1,147,000 | ||
Building | 7,707,000 | ||
Intangibles | 9,146,000 | ||
Properties | 1 | ||
Ownership interest (percent) | 90.00% | ||
Minneapolis, MN | Office building | |||
Business Acquisition [Line Items] | |||
Purchase Price | 51,278,000 | ||
Land | 9,447,000 | ||
Building | 27,811,000 | ||
Intangibles | 14,020,000 | ||
Properties | 1 | ||
Ownership interest (percent) | 90.00% | ||
Miami, FL | Condominium | |||
Business Acquisition [Line Items] | |||
Purchase Price | 80,000,000 | ||
Land | 10,487,000 | ||
Building | 67,895,000 | ||
Intangibles | 1,618,000 | ||
Properties | 1 | ||
Ownership interest (percent) | 100.00% | ||
Number of units | 324 | ||
Pittsfield, MA | Retail property | |||
Business Acquisition [Line Items] | |||
Purchase Price | 14,701,000 | ||
Land | 1,801,000 | ||
Building | 11,556,000 | ||
Intangibles | 1,344,000 | ||
Properties | 1 | ||
Ownership interest (percent) | 100.00% | ||
Various | Retail property | |||
Business Acquisition [Line Items] | |||
Purchase Price | 29,674,000 | ||
Land | 6,465,000 | ||
Building | 23,209,000 | ||
Intangibles | 0 | ||
Properties | 5 | ||
Ownership interest (percent) | 100.00% | ||
Various | Retail property | |||
Business Acquisition [Line Items] | |||
Purchase Price | 16,626,000 | ||
Land | 3,910,000 | ||
Building | 12,716,000 | ||
Intangibles | 0 | ||
Properties | 3 | ||
Ownership interest (percent) | 100.00% | ||
Various | Retail property | |||
Business Acquisition [Line Items] | |||
Purchase Price | 23,109,000 | ||
Land | 2,875,000 | ||
Building | 20,234,000 | ||
Intangibles | 0 | ||
Properties | 4 | ||
Ownership interest (percent) | 100.00% | ||
Millbrook, AL | Retail property | |||
Business Acquisition [Line Items] | |||
Purchase Price | 6,942,000 | ||
Land | 970,000 | ||
Building | 5,972,000 | ||
Intangibles | 0 | ||
Properties | 1 | ||
Ownership interest (percent) | 100.00% | ||
Columbia, SC | Retail property | |||
Business Acquisition [Line Items] | |||
Purchase Price | 7,800,000 | ||
Land | 2,148,000 | ||
Building | 4,629,000 | ||
Intangibles | 1,023,000 | ||
Properties | 1 | ||
Ownership interest (percent) | 100.00% | ||
Snellville, GA | Retail property | |||
Business Acquisition [Line Items] | |||
Purchase Price | 8,000,000 | ||
Land | 1,293,000 | ||
Building | 5,724,000 | ||
Intangibles | 983,000 | ||
Properties | 1 | ||
Ownership interest (percent) | 100.00% | ||
Greenwood, AR | Retail property | |||
Business Acquisition [Line Items] | |||
Purchase Price | 5,147,000 | ||
Land | 1,038,000 | ||
Building | 3,415,000 | ||
Intangibles | 694,000 | ||
Properties | 1 | ||
Ownership interest (percent) | 100.00% | ||
Middleburg, FL | Retail property | |||
Business Acquisition [Line Items] | |||
Purchase Price | 1,177,000 | ||
Land | 184,000 | ||
Building | 789,000 | ||
Intangibles | 204,000 | ||
Properties | 1 | ||
Ownership interest (percent) | 100.00% | ||
Satsuma, FL | Retail property | |||
Business Acquisition [Line Items] | |||
Purchase Price | 1,092,000 | ||
Land | 79,000 | ||
Building | 821,000 | ||
Intangibles | 192,000 | ||
Properties | 1 | ||
Ownership interest (percent) | 100.00% | ||
Greenwood, SC | Retail property | |||
Business Acquisition [Line Items] | |||
Purchase Price | 4,962,000 | ||
Land | 1,350,000 | ||
Building | 3,612,000 | ||
Intangibles | 0 | ||
Properties | 1 | ||
Ownership interest (percent) | 100.00% | ||
Orange City, FL | Retail property | |||
Business Acquisition [Line Items] | |||
Purchase Price | 1,317,000 | ||
Land | 229,000 | ||
Building | 853,000 | ||
Intangibles | 235,000 | ||
Properties | 1 | ||
Ownership interest (percent) | 100.00% | ||
Yulee, FL | Retail property | |||
Business Acquisition [Line Items] | |||
Purchase Price | 1,339,000 | ||
Land | 329,000 | ||
Building | 781,000 | ||
Intangibles | 229,000 | ||
Properties | 1 | ||
Ownership interest (percent) | 100.00% | ||
DeLeon Springs, FL | Retail property | |||
Business Acquisition [Line Items] | |||
Purchase Price | 1,242,000 | ||
Land | 239,000 | ||
Building | 782,000 | ||
Intangibles | 221,000 | ||
Properties | 1 | ||
Ownership interest (percent) | 100.00% | ||
North Dartsmouth, MA | Retail property | |||
Business Acquisition [Line Items] | |||
Purchase Price | 29,965,000 | ||
Land | 7,033,000 | ||
Building | 19,745,000 | ||
Intangibles | 3,187,000 | ||
Properties | 1 | ||
Ownership interest (percent) | 100.00% | ||
Mooresville, NC | Retail property | |||
Business Acquisition [Line Items] | |||
Purchase Price | 17,643,000 | ||
Land | 2,615,000 | ||
Building | 12,462,000 | ||
Intangibles | 2,566,000 | ||
Properties | 1 | ||
Ownership interest (percent) | 100.00% | ||
Saratoga Springs, NY | Retail property | |||
Business Acquisition [Line Items] | |||
Purchase Price | 20,223,000 | ||
Land | 748,000 | ||
Building | 13,937,000 | ||
Intangibles | 5,538,000 | ||
Properties | 1 | ||
Ownership interest (percent) | 100.00% | ||
Sennett, NY | Retail property | |||
Business Acquisition [Line Items] | |||
Purchase Price | 7,475,000 | ||
Land | 1,147,000 | ||
Building | 4,480,000 | ||
Intangibles | 1,848,000 | ||
Properties | 1 | ||
Ownership interest (percent) | 100.00% | ||
Tilton, NH | Retail property | |||
Business Acquisition [Line Items] | |||
Purchase Price | 7,256,000 | ||
Land | 1,476,000 | ||
Building | 4,888,000 | ||
Intangibles | 892,000 | ||
Properties | 1 | ||
Ownership interest (percent) | 100.00% | ||
Vineland, NJ | Retail property | |||
Business Acquisition [Line Items] | |||
Purchase Price | 22,506,000 | ||
Land | 1,482,000 | ||
Building | 17,742,000 | ||
Intangibles | 3,282,000 | ||
Properties | 1 | ||
Ownership interest (percent) | 100.00% | ||
Waldorf, MD | Retail property | |||
Business Acquisition [Line Items] | |||
Purchase Price | 18,803,000 | ||
Land | 4,933,000 | ||
Building | 11,684,000 | ||
Intangibles | 2,186,000 | ||
Properties | 1 | ||
Ownership interest (percent) | 100.00% | ||
Jonesboro, AR | Retail property | |||
Business Acquisition [Line Items] | |||
Purchase Price | 8,400,000 | ||
Land | 2,615,000 | ||
Building | 4,460,000 | ||
Intangibles | 1,325,000 | ||
Properties | 1 | ||
Ownership interest (percent) | 100.00% | ||
Mt. Juliet, TN | Retail property | |||
Business Acquisition [Line Items] | |||
Purchase Price | 9,100,000 | ||
Land | 2,739,000 | ||
Building | 4,854,000 | ||
Intangibles | 1,507,000 | ||
Properties | 1 | ||
Ownership interest (percent) | 100.00% | ||
Wichita, KS | Retail property | |||
Business Acquisition [Line Items] | |||
Purchase Price | 7,200,000 | ||
Land | 1,187,000 | ||
Building | 4,850,000 | ||
Intangibles | 1,163,000 | ||
Properties | 1 | ||
Ownership interest (percent) | 100.00% | ||
Abingdon, VA | Retail property | |||
Business Acquisition [Line Items] | |||
Purchase Price | 4,688,000 | ||
Land | 682,000 | ||
Building | 3,733,000 | ||
Intangibles | 273,000 | ||
Properties | 1 | ||
Ownership interest (percent) | 100.00% | ||
Ooltewah, TN | Retail property | |||
Business Acquisition [Line Items] | |||
Purchase Price | 5,703,000 | ||
Land | 903,000 | ||
Building | 3,957,000 | ||
Intangibles | 843,000 | ||
Properties | 1 | ||
Ownership interest (percent) | 100.00% | ||
Palmview, TX | Retail property | |||
Business Acquisition [Line Items] | |||
Purchase Price | 6,819,000 | ||
Land | 938,000 | ||
Building | 4,837,000 | ||
Intangibles | 1,044,000 | ||
Properties | 1 | ||
Ownership interest (percent) | 100.00% | ||
Las Vegas, NV | Condominium | |||
Business Acquisition [Line Items] | |||
Purchase Price | 119,000,000 | ||
Land | 4,900,000 | ||
Building | 114,100,000 | ||
Intangibles | 0 | ||
Properties | 0 | ||
Ownership interest (percent) | 98.80% | ||
Number of units | 427 | ||
Aiken, SC | Retail property | |||
Business Acquisition [Line Items] | |||
Purchase Price | 5,926,000 | ||
Land | 1,588,000 | ||
Building | 3,480,000 | ||
Intangibles | 858,000 | ||
Properties | 1 | ||
Ownership interest (percent) | 100.00% | ||
Johnson City, TN | Retail property | |||
Business Acquisition [Line Items] | |||
Purchase Price | 5,262,000 | ||
Land | 916,000 | ||
Building | 3,607,000 | ||
Intangibles | 739,000 | ||
Properties | 1 | ||
Ownership interest (percent) | 100.00% | ||
Mt. Airy, NC | Retail property | |||
Business Acquisition [Line Items] | |||
Purchase Price | 4,493,000 | ||
Land | 729,000 | ||
Building | 3,353,000 | ||
Intangibles | 411,000 | ||
Properties | 1 | ||
Ownership interest (percent) | 100.00% | ||
Gallatin, TN | Retail property | |||
Business Acquisition [Line Items] | |||
Purchase Price | 5,061,000 | ||
Land | 1,724,000 | ||
Building | 2,616,000 | ||
Intangibles | $721,000 | ||
Properties | 1 | ||
Ownership interest (percent) | 100.00% |
REAL_ESTATE_AND_RELATED_LEASE_4
REAL ESTATE AND RELATED LEASE INTANGIBLES, NET - Real Estate Properties Sold (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Disposal Groups, Including Discontinued Operations [Line Items] | |||
Proceeds from sale of real estate | $123,443,538 | $36,929,752 | $75,646,240 |
Real estate and related lease intangibles, net | 768,986,193 | 624,219,015 | |
Gain on sale | 29,760,115 | 13,565,164 | 1,275,235 |
2014 Disposal Properties | |||
Disposal Groups, Including Discontinued Operations [Line Items] | |||
Proceeds from sale of real estate | 123,444,000 | ||
Real estate and related lease intangibles, net | 93,684,000 | ||
Gain on sale | 29,760,000 | ||
2014 Disposal Properties | Office building | Richmond, VA | |||
Disposal Groups, Including Discontinued Operations [Line Items] | |||
Proceeds from sale of real estate | 16,754,000 | ||
Real estate and related lease intangibles, net | 15,643,000 | ||
Gain on sale | 1,111,000 | ||
Number of properties disposed | 1 | ||
Number of units sold | 1 | ||
2014 Disposal Properties | Retail property | Tilton, NH | |||
Disposal Groups, Including Discontinued Operations [Line Items] | |||
Proceeds from sale of real estate | 8,432,000 | ||
Real estate and related lease intangibles, net | 6,743,000 | ||
Gain on sale | 1,689,000 | ||
Number of properties disposed | 1 | ||
Number of units sold | 1 | ||
2014 Disposal Properties | Retail property | Yulee, FL | |||
Disposal Groups, Including Discontinued Operations [Line Items] | |||
Proceeds from sale of real estate | 1,436,000 | ||
Real estate and related lease intangibles, net | 1,246,000 | ||
Gain on sale | 190,000 | ||
Number of properties disposed | 1 | ||
Number of units sold | 1 | ||
2014 Disposal Properties | Retail property | Middleburg, FL | |||
Disposal Groups, Including Discontinued Operations [Line Items] | |||
Proceeds from sale of real estate | 1,262,000 | ||
Real estate and related lease intangibles, net | 1,077,000 | ||
Gain on sale | 185,000 | ||
Number of properties disposed | 1 | ||
Number of units sold | 1 | ||
2014 Disposal Properties | Retail property | Jonesboro, AR | |||
Disposal Groups, Including Discontinued Operations [Line Items] | |||
Proceeds from sale of real estate | 9,413,000 | ||
Real estate and related lease intangibles, net | 8,016,000 | ||
Gain on sale | 1,397,000 | ||
Number of properties disposed | 1 | ||
Number of units sold | 1 | ||
2014 Disposal Properties | Retail property | Mt. Juliet, TN | |||
Disposal Groups, Including Discontinued Operations [Line Items] | |||
Proceeds from sale of real estate | 10,168,000 | ||
Real estate and related lease intangibles, net | 8,724,000 | ||
Gain on sale | 1,444,000 | ||
Number of properties disposed | 1 | ||
Number of units sold | 1 | ||
2014 Disposal Properties | Retail property | Las Vegas, NV | |||
Disposal Groups, Including Discontinued Operations [Line Items] | |||
Proceeds from sale of real estate | 52,976,000 | ||
Real estate and related lease intangibles, net | 33,925,000 | ||
Gain on sale | 19,051,000 | ||
Number of properties disposed | 0 | ||
Number of units sold | 113 | ||
2014 Disposal Properties | Retail property | Miami, FL | |||
Disposal Groups, Including Discontinued Operations [Line Items] | |||
Proceeds from sale of real estate | 23,003,000 | ||
Real estate and related lease intangibles, net | 18,310,000 | ||
Gain on sale | 4,693,000 | ||
Number of properties disposed | 0 | ||
Number of units sold | 72 | ||
2013 Disposal Properties | Condominium | Las Vegas, NV | |||
Disposal Groups, Including Discontinued Operations [Line Items] | |||
Proceeds from sale of real estate | 36,930,000 | ||
Real estate and related lease intangibles, net | 23,365,000 | ||
Gain on sale | 13,565,000 | ||
Number of properties disposed | 0 | ||
Number of units sold | 94 | ||
2012 Disposal Properties | |||
Disposal Groups, Including Discontinued Operations [Line Items] | |||
Proceeds from sale of real estate | 75,646,000 | ||
Real estate and related lease intangibles, net | 74,371,000 | ||
Gain on sale | 1,275,000 | ||
2012 Disposal Properties | Retail property | Various | |||
Disposal Groups, Including Discontinued Operations [Line Items] | |||
Proceeds from sale of real estate | 30,304,000 | ||
Real estate and related lease intangibles, net | 29,674,000 | ||
Gain on sale | 630,000 | ||
Number of properties disposed | 5 | ||
Number of units sold | 5 | ||
2012 Disposal Properties | Retail property | Various | |||
Disposal Groups, Including Discontinued Operations [Line Items] | |||
Proceeds from sale of real estate | 16,944,000 | ||
Real estate and related lease intangibles, net | 16,626,000 | ||
Gain on sale | 318,000 | ||
Number of properties disposed | 3 | ||
Number of units sold | 3 | ||
2012 Disposal Properties | Retail property | Various | |||
Disposal Groups, Including Discontinued Operations [Line Items] | |||
Proceeds from sale of real estate | 23,635,000 | ||
Real estate and related lease intangibles, net | 23,109,000 | ||
Gain on sale | 526,000 | ||
Number of properties disposed | 4 | ||
Number of units sold | 4 | ||
2012 Disposal Properties | Retail property | Greenwood, SC | |||
Disposal Groups, Including Discontinued Operations [Line Items] | |||
Proceeds from sale of real estate | 4,763,000 | ||
Real estate and related lease intangibles, net | 4,962,000 | ||
Gain on sale | ($199,000) | ||
Number of properties disposed | 1 | ||
Number of units sold | 1 |
REAL_ESTATE_AND_RELATED_LEASE_5
REAL ESTATE AND RELATED LEASE INTANGIBLES, NET - Schedule of Income from Disposal Properties (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Real Estate Properties [Line Items] | |||
Operating lease income | $56,649,278 | $37,394,416 | $8,331,338 |
Tenant recoveries | 9,182,952 | 3,271,095 | 0 |
Depreciation and amortization | -28,447,437 | -21,514,572 | -3,640,619 |
Real estate sold | |||
Real Estate Properties [Line Items] | |||
Operating lease income | 3,377,079 | 4,781,046 | 787,211 |
Tenant recoveries | 277,792 | 295,385 | 0 |
Depreciation and amortization | -2,211,792 | -1,803,878 | -272,202 |
Income from properties sold | $1,443,079 | $3,272,553 | $515,009 |
REAL_ESTATE_AND_RELATED_LEASE_6
REAL ESTATE AND RELATED LEASE INTANGIBLES, NET - Unaudited Pro Forma (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |||||||||||
Operating lease income | $56,649,278 | $37,394,416 | $8,331,338 | ||||||||
Net income | 11,806,000 | 37,176,000 | 30,243,000 | 18,401,000 | 19,744,000 | 21,187,000 | 59,752,000 | 88,050,000 | 97,626,251 | 188,733,086 | 169,454,280 |
Net (income) loss attributable to noncontrolling interest in consolidated joint ventures | 368,670 | 1,098,150 | 49,084 | ||||||||
Net income attributable to preferred and common unit holders | 189,831,236 | 169,503,364 | |||||||||
Net loss attributable to predecessor unitholders | 0 | 0 | 0 | 12,628,000 | 21,540,000 | 20,162,000 | 60,107,000 | 88,023,000 | 12,628,031 | 189,831,236 | 169,503,364 |
Net (income) loss attributable to noncontrolling interest in operating partnership | -7,350,000 | -22,827,000 | -17,691,000 | -18,568,000 | -66,436,274 | ||||||
Net income attributable to Class A common shareholders | 4,374,000 | 14,656,000 | 12,505,000 | 12,652,000 | 44,186,678 | ||||||
Acquisitions | |||||||||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |||||||||||
Operating lease income | 20,079,460 | 34,184,780 | 34,387,525 | ||||||||
Net income | 5,222,032 | 4,880,518 | 5,030,503 | ||||||||
Net (income) loss attributable to noncontrolling interest in consolidated joint ventures | 256,930 | -107,046 | -1,160,377 | ||||||||
Net income attributable to preferred and common unit holders | 95,469 | 3,870,126 | |||||||||
Net loss attributable to predecessor unitholders | 0 | ||||||||||
Net (income) loss attributable to noncontrolling interest in operating partnership | -2,684,691 | ||||||||||
Net income attributable to Class A common shareholders | 2,794,271 | ||||||||||
Consolidated Pro Forma | |||||||||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |||||||||||
Operating lease income | 76,728,738 | 71,579,196 | 42,718,863 | ||||||||
Net income | 102,848,283 | 193,613,604 | 174,484,783 | ||||||||
Net (income) loss attributable to noncontrolling interest in consolidated joint ventures | 625,600 | 991,104 | -1,111,293 | ||||||||
Net income attributable to preferred and common unit holders | 189,926,705 | 173,373,490 | |||||||||
Net loss attributable to predecessor unitholders | 12,628,031 | ||||||||||
Net (income) loss attributable to noncontrolling interest in operating partnership | -69,120,965 | ||||||||||
Net income attributable to Class A common shareholders | $46,980,949 |
REAL_ESTATE_AND_RELATED_LEASE_7
REAL ESTATE AND RELATED LEASE INTANGIBLES, NET - Schedule of Real Estate Portfolio (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Real Estate Properties [Line Items] | ||
Real estate | $819,590,851 | $649,819,795 |
Less: Accumulated depreciation and amortization | -50,604,658 | -25,600,780 |
Real estate and related lease intangibles, net | 768,986,193 | 624,219,015 |
Land | ||
Real Estate Properties [Line Items] | ||
Real estate | 122,458,226 | 91,609,368 |
Building | ||
Real Estate Properties [Line Items] | ||
Real estate | 569,773,422 | 474,301,322 |
In-place leases and other intangibles | ||
Real Estate Properties [Line Items] | ||
Real estate | $127,359,203 | $83,909,105 |
REAL_ESTATE_AND_RELATED_LEASE_8
REAL ESTATE AND RELATED LEASE INTANGIBLES, NET - Schedule of Depreciation and Amortization Expense on Real Estate (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Real Estate [Abstract] | |||
Depreciation expense | $18,034,142 | $13,150,757 | $1,148,419 |
Amortization expense | 10,237,716 | 7,816,507 | 1,944,892 |
Total real estate depreciation and amortization expense | 28,271,858 | 20,967,264 | 3,093,311 |
Depreciation on corporate fixed assets | $175,579 | $547,308 | $547,308 |
REAL_ESTATE_AND_RELATED_LEASE_9
REAL ESTATE AND RELATED LEASE INTANGIBLES, NET - Expected Future Amortization Expense (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Finite-Lived Intangible Assets [Line Items] | ||
Net intangible assets | $107,466,424 | $74,233,856 |
In-place leases intangibles | ||
Finite-Lived Intangible Assets [Line Items] | ||
2015 | 14,821,524 | |
2016 | 12,924,316 | |
2017 | 9,876,406 | |
2018 | 7,807,079 | |
2019 | 7,509,205 | |
Thereafter | 47,112,706 | |
Net intangible assets | $100,051,236 |
Recovered_Sheet1
REAL ESTATE AND RELATED LEASE INTANGIBLES, NET - Future Minimum Rental Payments Receivable (Details) (USD $) | Dec. 31, 2014 |
Real Estate [Abstract] | |
2015 | $65,109,827 |
2016 | 57,963,866 |
2017 | 54,677,652 |
2018 | 51,925,456 |
2019 | 47,282,871 |
Thereafter | 405,026,328 |
Total | $681,986,000 |
INVESTMENT_IN_UNCONSOLIDATED_J2
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES (Details) (USD $) | 12 Months Ended | 3 Months Ended | 1 Months Ended | ||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Apr. 30, 2012 | Apr. 15, 2011 | Mar. 22, 2013 | |
loan | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Investments in unconsolidated joint ventures | $6,041,333 | $9,262,762 | $6,041,333 | ||||
Management fee | 11,703,791 | 7,921,430 | 8,787,695 | ||||
Cost of mortgages sold to a related party | 3,523,688,310 | 2,345,704,987 | 1,815,995,772 | ||||
LCRIP I | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Investments in unconsolidated joint ventures | 3,898,435 | 7,119,864 | 3,898,435 | ||||
Minimum average net equity partnership investment as a basis for management fee reduction | 100,000,000 | ||||||
Management fee | 391,955 | 785,925 | 744,182 | ||||
Number of loans sold to a related party | 1 | 5 | 0 | ||||
Cost of mortgages sold to a related party | 17,200,000 | 140,900,000 | |||||
Gain on sale of loan | 139,901 | 1,000,000 | |||||
Gain on sale of loans deferred (as a percent) | 10.00% | ||||||
Maximum additional distribution percentage if return thresholds are met | 25.00% | ||||||
LCRIP I | LP Units | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Ownership interest (as a percent) | 10.00% | 10.00% | 10.00% | ||||
Percentage of costs related to assets the Company is obligated to provide | 10.00% | 10.00% | |||||
Grace Lake JV, LLC | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Investments in unconsolidated joint ventures | $2,142,898 | $2,142,898 | $2,142,898 | ||||
Percentage of investment of operating partner | 75.00% | ||||||
Percentage of equity kicker received with right to convert upon capital event | 25.00% | ||||||
Preferred return used to determine distribution of excess cash flow (as a percent) | 8.25% | ||||||
Percentage of distribution of all excess cash flows and all disposition proceeds upon any sale entitled after consideration of preferred return and return of equity remaining in the property to operating partner | 25.00% | ||||||
Grace Lake JV, LLC | LP Units | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Ownership interest (as a percent) | 25.00% | 25.00% | 25.00% | ||||
Grace Lake JV, LLC | Limited liability company | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Ownership interest (as a percent) | 25.00% | 25.00% |
INVESTMENT_IN_UNCONSOLIDATED_J3
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES - Investments in Unconsolidated Joint Ventures (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Schedule of Equity Method Investments [Line Items] | ||
Companybs investment in unconsolidated joint ventures | $6,041,333 | $9,262,762 |
Ladder Capital Realty Income Partnership I LP | ||
Schedule of Equity Method Investments [Line Items] | ||
Companybs investment in unconsolidated joint ventures | 3,898,435 | 7,119,864 |
Grace Lake JV, LLC | ||
Schedule of Equity Method Investments [Line Items] | ||
Companybs investment in unconsolidated joint ventures | $2,142,898 | $2,142,898 |
INVESTMENT_IN_UNCONSOLIDATED_J4
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES - Summary of Allocated Earning from Investment in Unconsolidated Joint Ventures (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Schedule of Equity Method Investments [Line Items] | |||
Earnings from investment in unconsolidated joint ventures | $1,990,117 | $3,203,358 | $1,256,109 |
Ladder Capital Realty Income Partnership I LP | |||
Schedule of Equity Method Investments [Line Items] | |||
Earnings from investment in unconsolidated joint ventures | 1,090,117 | 2,568,358 | 1,256,109 |
Grace Lake JV, LLC | |||
Schedule of Equity Method Investments [Line Items] | |||
Earnings from investment in unconsolidated joint ventures | $900,000 | $635,000 | $0 |
INVESTMENT_IN_UNCONSOLIDATED_J5
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES - Results from Operations of the Unconsolidated Joint Ventures (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Results from Operations | |||
Total revenues | $26,058,808 | $36,135,088 | $17,373,332 |
Total expenses | 16,863,743 | 10,553,956 | 5,800,282 |
Net income | 9,195,065 | 25,581,132 | 11,573,050 |
Financial Position | |||
Total assets | 118,761,580 | 190,415,719 | |
Total liabilities | 81,072,965 | 112,808,701 | |
Partnersb/membersb capital | $37,688,615 | $77,607,018 |
DEBT_OBLIGATIONS_Details
DEBT OBLIGATIONS (Details) (USD $) | 12 Months Ended | 0 Months Ended | ||||||||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Feb. 11, 2014 | Jan. 24, 2013 | 29-May-14 | Oct. 31, 2014 | Oct. 30, 2014 | Apr. 29, 2014 | Apr. 28, 2014 | Sep. 14, 2012 | Aug. 01, 2014 | |
Financing_Counterparty | ||||||||||||
FINANCING | ||||||||||||
Borrowings under credit agreement | $11,000,000 | $0 | ||||||||||
Outstanding Amount | 1,431,665,681 | 609,834,793 | ||||||||||
Restricted equity from payment as dividend | 900,300,000 | |||||||||||
Mortgage loan financing | 447,409,690 | 291,053,406 | ||||||||||
Amortization of premiums | -629,022 | -533,818 | 0 | |||||||||
FHLB borrowings outstanding | 1,611,000,000 | 989,000,000 | ||||||||||
Loss on extinguishment of debt | -149,738 | 0 | 0 | |||||||||
Ownership interest in subsidiary (as a percent) | 100.00% | |||||||||||
Tuebor | ||||||||||||
FINANCING | ||||||||||||
Amount restricted from transfer | 210,400,000 | |||||||||||
Revolving credit facility | One-Month LIBOR | ||||||||||||
FINANCING | ||||||||||||
Committed amount on credit agreement | 75,000,000 | |||||||||||
Spread on interest (as a percent) | 3.50% | |||||||||||
Debt borrowings term | 3 years | |||||||||||
Number of twelve-month extension maturity periods | 2 | |||||||||||
Length of extension options | 12 months | |||||||||||
Outstanding Amount | 25,000,000 | |||||||||||
Letters of credit | ||||||||||||
FINANCING | ||||||||||||
Committed amount on credit agreement | 25,000,000 | |||||||||||
Term master repurchase agreement | ||||||||||||
FINANCING | ||||||||||||
Committed amount on master repurchase agreement | 300,000,000 | 600,000,000 | ||||||||||
Outstanding Amount | 174,852,934 | 88,921,450 | ||||||||||
Committed master repurchase agreements | ||||||||||||
FINANCING | ||||||||||||
Number of agreements | 3 | |||||||||||
Committed amount on master repurchase agreement | 1,150,000,000 | 1,300,000,000 | 450,000,000 | 450,000,000 | 300,000,000 | |||||||
Outstanding Amount | 509,023,747 | 159,312,343 | ||||||||||
Uncommitted Securities Repurchase Facilities | Minimum | ||||||||||||
FINANCING | ||||||||||||
Advance rates (as a percent) | 65.00% | |||||||||||
Uncommitted Securities Repurchase Facilities | Maximum | ||||||||||||
FINANCING | ||||||||||||
Advance rates (as a percent) | 95.00% | |||||||||||
Maturity 30 to 90 Days | Committed master repurchase agreements | ||||||||||||
FINANCING | ||||||||||||
Committed amount on master repurchase agreement | 650,000,000 | |||||||||||
Credit Agreement | ||||||||||||
FINANCING | ||||||||||||
Committed amount on credit agreement | 50,000,000 | |||||||||||
Number of multiple committed financing counterparties | 1 | |||||||||||
Borrowings under credit agreement | 11,000,000 | 0 | ||||||||||
Credit Agreement | One-Month LIBOR | ||||||||||||
FINANCING | ||||||||||||
Spread on interest (as a percent) | 2.75% | 2.75% | ||||||||||
Mortgage loan financing | ||||||||||||
FINANCING | ||||||||||||
Number of agreements | 13 | 16 | ||||||||||
Borrowing under credit and security agreement | 447,409,690 | |||||||||||
Stated interest rate, minimum (as a percent) | 4.25% | |||||||||||
Stated interest rate, maximum (as a percent) | 6.75% | |||||||||||
Mortgage loan financing | 291,053,406 | |||||||||||
Net unamortized premiums | 5,250,471 | 3,807,479 | ||||||||||
Amortization of premiums | 629,022 | 533,818 | 32,205 | |||||||||
Collateral for debt instrument | 591,612,770 | 401,262,302 | ||||||||||
Borrowings from the Federal Home Loan Bank | Tuebor | ||||||||||||
FINANCING | ||||||||||||
Debt borrowings term | 10 years | 7 years | ||||||||||
Stated interest rate, minimum (as a percent) | 0.30% | 0.20% | ||||||||||
Stated interest rate, maximum (as a percent) | 2.74% | 2.40% | ||||||||||
Maximum advance limit | 1,900,000,000 | |||||||||||
Additional committed term financing available from FHLB | 289,000,000 | 416,000,000 | ||||||||||
Borrowings from the Federal Home Loan Bank | Tuebor | Ladder Capital Corp | ||||||||||||
FINANCING | ||||||||||||
Advance rates of total assets (as a percent) | 33.00% | |||||||||||
Borrowings from the Federal Home Loan Bank | Tuebor | Minimum | ||||||||||||
FINANCING | ||||||||||||
Advance rates (as a percent) | 50.00% | 57.00% | ||||||||||
Borrowings from the Federal Home Loan Bank | Tuebor | Maximum | ||||||||||||
FINANCING | ||||||||||||
Advance rates (as a percent) | 95.20% | 95.00% | ||||||||||
Borrowings from the Federal Home Loan Bank | Tuebor | CMBS and U.S. Agency Securities | ||||||||||||
FINANCING | ||||||||||||
Collateral for debt instrument | 1,617,225,211 | 1,013,640,649 | ||||||||||
Borrowings from the Federal Home Loan Bank | Tuebor | First mortgage commercial real estate loans | ||||||||||||
FINANCING | ||||||||||||
Collateral for debt instrument | 451,762,840 | 276,722,665 | ||||||||||
Credit and Security Agreement | ||||||||||||
FINANCING | ||||||||||||
Debt issued | 46,750,000 | |||||||||||
Borrowing under credit and security agreement | 46,750,000 | |||||||||||
Credit and Security Agreement | One-Month LIBOR | ||||||||||||
FINANCING | ||||||||||||
Spread on interest (as a percent) | 1.85% | |||||||||||
Senior Notes Due, 2017 | ||||||||||||
FINANCING | ||||||||||||
Debt issued | 319,555,000 | 325,000,000 | ||||||||||
Interest rate (as a percent) | 7.38% | |||||||||||
2021 Notes | ||||||||||||
FINANCING | ||||||||||||
Debt issued | 300,000,000 | |||||||||||
Interest rate (as a percent) | 5.88% | |||||||||||
Senior Notes Due, 2017 | ||||||||||||
FINANCING | ||||||||||||
Principle amount of debt repurchased | 5,445,000 | |||||||||||
Repurchase price of notes | 5,594,738 | |||||||||||
Loss on extinguishment of debt | ($149,738) | |||||||||||
LCFH | ||||||||||||
FINANCING | ||||||||||||
Economic interest (as a percent) | 51.90% |
DEBT_OBLIGATIONS_Schedule_of_U
DEBT OBLIGATIONS - Schedule of Uncommitted Securities Repurchase Facilities (Details) (USD $) | 12 Months Ended | ||||
Dec. 31, 2014 | Dec. 31, 2013 | Oct. 30, 2014 | Apr. 29, 2014 | Apr. 28, 2014 | |
period | period | ||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||
Outstanding Amount | $1,431,665,681 | $609,834,793 | |||
Carrying Amount of Collateral | 0 | 0 | |||
Borrowings under credit agreement | 11,000,000 | 0 | |||
Committed master repurchase agreements | |||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||
Committed amount on master repurchase agreement | 1,150,000,000 | 1,300,000,000 | 450,000,000 | 450,000,000 | 300,000,000 |
Outstanding Amount | 509,023,747 | 159,312,343 | |||
Committed but Unfunded | 640,976,253 | 1,140,687,657 | |||
Carrying Amount of Collateral | 801,960,696 | 285,023,726 | |||
Fair Value of collateral | 806,014,472 | 286,488,100 | |||
Term master repurchase agreement | |||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||
Committed amount on master repurchase agreement | 300,000,000 | 600,000,000 | |||
Outstanding Amount | 174,852,934 | 88,921,450 | |||
Committed but Unfunded | 125,147,066 | 511,078,550 | |||
Carrying Amount of Collateral | 214,616,911 | 110,400,378 | |||
Fair Value of collateral | 214,616,911 | 110,400,378 | |||
Master repurchase agreements | |||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||
Committed amount on master repurchase agreement | 1,450,000,000 | 1,900,000,000 | |||
Outstanding Amount | 1,431,665,681 | 609,834,793 | |||
Committed but Unfunded | 766,123,319 | 1,651,766,207 | |||
Carrying Amount of Collateral | 1,878,034,022 | 836,145,796 | |||
Fair Value of collateral | 1,882,087,798 | 837,610,170 | |||
10/30/2016 | Committed master repurchase agreements | |||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||
Committed amount on master repurchase agreement | 450,000,000 | ||||
Outstanding Amount | 147,796,694 | ||||
Committed but Unfunded | 302,203,306 | ||||
Number of remaining periods of extension options | 2 | ||||
Length of extension options | 12 months | ||||
Carrying Amount of Collateral | 278,530,141 | ||||
Fair Value of collateral | 279,921,708 | ||||
4/10/2016 | Committed master repurchase agreements | |||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||
Committed amount on master repurchase agreement | 250,000,000 | ||||
Outstanding Amount | 138,711,146 | ||||
Committed but Unfunded | 111,288,854 | ||||
Number of remaining periods of extension options | 1 | ||||
Length of extension options | 364 days | ||||
Carrying Amount of Collateral | 144,857,341 | ||||
Fair Value of collateral | 145,748,847 | ||||
5/18/2015 | Committed master repurchase agreements | |||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||
Committed amount on master repurchase agreement | 300,000,000 | ||||
Outstanding Amount | 22,749,015 | ||||
Committed but Unfunded | 277,250,985 | ||||
Number of remaining periods of extension options | 2 | ||||
Length of extension options | 12 months | ||||
Carrying Amount of Collateral | 46,084,620 | ||||
Fair Value of collateral | 46,483,618 | ||||
4/10/2014 | Committed master repurchase agreements | |||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||
Committed amount on master repurchase agreement | 250,000,000 | ||||
Outstanding Amount | 28,407,500 | ||||
Committed but Unfunded | 221,592,500 | ||||
Number of remaining periods of extension options | 2 | ||||
Length of extension options | 364 days | ||||
Carrying Amount of Collateral | 41,428,429 | ||||
Fair Value of collateral | 41,518,063 | ||||
5/26/2015 | Committed master repurchase agreements | |||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||
Committed amount on master repurchase agreement | 450,000,000 | 450,000,000 | |||
Outstanding Amount | 222,515,907 | 60,423,328 | |||
Committed but Unfunded | 227,484,093 | 389,576,672 | |||
Number of remaining periods of extension options | 2 | ||||
Length of extension options | 12 months | ||||
Carrying Amount of Collateral | 378,573,214 | 132,160,677 | |||
Fair Value of collateral | 380,343,917 | 132,673,364 | |||
Maturing on Various Date | |||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||
Outstanding Amount | 747,789,000 | ||||
Carrying Amount of Collateral | 861,456,415 | ||||
Fair Value of collateral | 861,456,415 | ||||
1/24/2014 | Committed master repurchase agreements | |||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||
Committed amount on master repurchase agreement | 300,000,000 | ||||
Outstanding Amount | 47,732,500 | ||||
Committed but Unfunded | 252,267,500 | ||||
Carrying Amount of Collateral | 65,350,000 | ||||
Fair Value of collateral | 65,813,055 | ||||
1/17/14 | |||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||
Outstanding Amount | 361,601,000 | ||||
Carrying Amount of Collateral | 440,721,692 | ||||
Fair Value of collateral | $440,721,692 | ||||
Minimum | Term master repurchase agreement | |||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||
Interest Rate(s) (as a percent) | 1.26% | ||||
Minimum | 10/30/2016 | Committed master repurchase agreements | |||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||
Interest Rate(s) (as a percent) | 2.42% | ||||
Minimum | 4/10/2016 | Committed master repurchase agreements | |||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||
Interest Rate(s) (as a percent) | 2.41% | ||||
Minimum | 5/18/2015 | Committed master repurchase agreements | |||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||
Interest Rate(s) (as a percent) | 2.42% | ||||
Minimum | 4/10/2014 | Committed master repurchase agreements | |||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||
Interest Rate(s) (as a percent) | 2.42% | ||||
Minimum | 5/26/2015 | Committed master repurchase agreements | |||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||
Interest Rate(s) (as a percent) | 2.42% | 2.41% | |||
Minimum | Maturing on Various Date | |||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||
Interest Rate(s) (as a percent) | 0.50% | ||||
Minimum | 1/24/2014 | Committed master repurchase agreements | |||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||
Interest Rate(s) (as a percent) | 2.66% | ||||
Minimum | 1/17/2014 | |||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||
Interest Rate(s) (as a percent) | 0.42% | ||||
Maximum | Term master repurchase agreement | |||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||
Interest Rate(s) (as a percent) | 1.27% | ||||
Maximum | 10/30/2016 | Committed master repurchase agreements | |||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||
Interest Rate(s) (as a percent) | 2.66% | ||||
Maximum | 4/10/2016 | Committed master repurchase agreements | |||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||
Interest Rate(s) (as a percent) | 3.04% | ||||
Maximum | 5/18/2015 | Committed master repurchase agreements | |||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||
Interest Rate(s) (as a percent) | 2.67% | ||||
Maximum | 4/10/2014 | Committed master repurchase agreements | |||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||
Interest Rate(s) (as a percent) | 3.04% | ||||
Maximum | 5/26/2015 | Committed master repurchase agreements | |||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||
Interest Rate(s) (as a percent) | 3.16% | 3.18% | |||
Maximum | Maturing on Various Date | |||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||
Interest Rate(s) (as a percent) | 1.66% | ||||
Maximum | 1/24/2014 | Committed master repurchase agreements | |||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||
Interest Rate(s) (as a percent) | 2.67% | ||||
Maximum | 1/17/2014 | |||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||
Interest Rate(s) (as a percent) | 1.67% |
DEBT_OBLIGATIONS_Schedule_of_R
DEBT OBLIGATIONS - Schedule of Repayments Maturities of Long-term Debt (Details) (USD $) | Dec. 31, 2014 |
Debt Disclosure [Abstract] | |
2015 | $2,155,163,140 |
2016 | 484,321,730 |
2017 | 502,696,941 |
2018 | 54,558,934 |
2019 | 28,458,573 |
Thereafter | 961,930,576 |
Total | $4,187,129,894 |
FAIR_VALUE_OF_FINANCIAL_INSTRU2
FAIR VALUE OF FINANCIAL INSTRUMENTS - Estimated Fair Values of Financial Instruments (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Repurchase agreements - short term | ||
Liabilities: | ||
Outstanding Face Amount | $1,331,603,000 | $409,334,000 |
Fair Value | 1,331,603,000 | 409,334,000 |
Repurchase agreements - short term | Discounted Cash Flow | ||
Liabilities: | ||
Outstanding Face Amount | 1,331,603,000 | 409,334,000 |
Amortized Cost Basis | 1,331,603,000 | 409,334,000 |
Fair Value | 1,331,603,000 | 409,334,000 |
Fair Value Assumptions: | ||
Weighted average yield % | 1.32% | 1.46% |
Weighted Average Remaining Maturity/Duration | 2 months 23 days | 14 days |
Repurchase agreements - long term | ||
Liabilities: | ||
Outstanding Face Amount | 100,062,000 | 200,501,000 |
Fair Value | 100,062,000 | 200,501,000 |
Repurchase agreements - long term | Discounted Cash Flow | ||
Liabilities: | ||
Outstanding Face Amount | 100,062,000 | 200,501,000 |
Amortized Cost Basis | 100,062,000 | 200,501,000 |
Fair Value | 100,062,000 | 200,501,000 |
Fair Value Assumptions: | ||
Weighted average yield % | 1.89% | 2.13% |
Weighted Average Remaining Maturity/Duration | 1 year 7 months 2 days | 1 year 5 months 26 days |
Borrowings under credit agreement | ||
Liabilities: | ||
Outstanding Face Amount | 11,000,000 | |
Fair Value | 11,000,000 | |
Borrowings under credit agreement | Discounted Cash Flow | ||
Liabilities: | ||
Outstanding Face Amount | 11,000,000 | |
Amortized Cost Basis | 11,000,000 | |
Fair Value | 11,000,000 | |
Fair Value Assumptions: | ||
Weighted average yield % | 2.91% | |
Weighted Average Remaining Maturity/Duration | 1 year 25 days | |
Borrowings under credit and security agreement | ||
Liabilities: | ||
Outstanding Face Amount | 46,750,000 | |
Fair Value | 46,750,000 | |
Borrowings under credit and security agreement | Discounted Cash Flow | ||
Liabilities: | ||
Outstanding Face Amount | 46,750,000 | |
Amortized Cost Basis | 46,750,000 | |
Fair Value | 46,750,000 | |
Fair Value Assumptions: | ||
Weighted average yield % | 2.01% | |
Weighted Average Remaining Maturity/Duration | 1 year 9 months 7 days | |
Revolving credit facility | ||
Liabilities: | ||
Outstanding Face Amount | 25,000,000 | |
Fair Value | 25,000,000 | |
Revolving credit facility | Discounted Cash Flow | ||
Liabilities: | ||
Outstanding Face Amount | 25,000,000 | |
Amortized Cost Basis | 25,000,000 | |
Fair Value | 25,000,000 | |
Fair Value Assumptions: | ||
Weighted average yield % | 3.66% | |
Weighted Average Remaining Maturity/Duration | 2 years 1 month 13 days | |
Mortgage loan financing | ||
Liabilities: | ||
Outstanding Face Amount | 442,753,000 | 287,246,000 |
Fair Value | 455,846,000 | 278,129,000 |
Mortgage loan financing | Discounted Cash Flow | ||
Liabilities: | ||
Outstanding Face Amount | 442,753,000 | 287,246,000 |
Amortized Cost Basis | 447,410,000 | 291,053,000 |
Fair Value | 455,846,000 | 278,129,000 |
Fair Value Assumptions: | ||
Weighted average yield % | 4.85% | 4.84% |
Weighted Average Remaining Maturity/Duration | 8 years 5 months 19 days | 8 years 8 months 12 days |
Impairment on security positions | 0 | 0 |
Borrowings from the FHLB | ||
Liabilities: | ||
Outstanding Face Amount | 1,611,000,000 | 989,000,000 |
Fair Value | 1,616,373,000 | 987,896,000 |
Borrowings from the FHLB | Discounted Cash Flow | ||
Liabilities: | ||
Outstanding Face Amount | 1,611,000,000 | 989,000,000 |
Amortized Cost Basis | 1,611,000,000 | 989,000,000 |
Fair Value | 1,616,373,000 | 987,896,000 |
Fair Value Assumptions: | ||
Weighted average yield % | 0.79% | 0.57% |
Weighted Average Remaining Maturity/Duration | 2 years 18 days | 1 year 7 months 6 days |
Senior unsecured notes | ||
Liabilities: | ||
Outstanding Face Amount | 619,555,000 | 325,000,000 |
Fair Value | 611,745,000 | 341,250,000 |
Senior unsecured notes | Broker quotations, pricing services | ||
Liabilities: | ||
Outstanding Face Amount | 619,555,000 | 325,000,000 |
Amortized Cost Basis | 619,555,000 | 325,000,000 |
Fair Value | 611,745,000 | 341,250,000 |
Fair Value Assumptions: | ||
Weighted average yield % | 6.65% | 7.38% |
Weighted Average Remaining Maturity/Duration | 4 years 7 months 9 days | 3 years 9 months |
Repurchase agreement liabilities | ||
Fair Value Assumptions: | ||
Period of short interest rate reset risk | 30 days | 30 days |
Impairment on security positions | 0 | 0 |
Mortgage loan receivables held for investment, at amortized cost | ||
Assets: | ||
Outstanding Face Amount | 1,536,923,000 | 549,574,000 |
Fair Value | 1,540,388,000 | 541,578,000 |
Mortgage loan receivables held for investment, at amortized cost | Discounted Cash Flow | ||
Assets: | ||
Outstanding Face Amount | 1,536,923,000 | 549,574,000 |
Amortized Cost Basis | 1,521,053,000 | 539,078,000 |
Fair Value | 1,540,388,000 | 541,578,000 |
Fair Value Assumptions: | ||
Weighted average yield % | 7.33% | 9.76% |
Weighted Average Remaining Maturity/Duration | 1 year 11 months 15 days | 2 years 1 month 20 days |
Mortgage loan receivables held for sale | ||
Assets: | ||
Outstanding Face Amount | 417,955,000 | 440,775,000 |
Fair Value | 421,991,000 | 455,804,000 |
Mortgage loan receivables held for sale | Discounted Cash Flow | ||
Assets: | ||
Outstanding Face Amount | 417,955,000 | 440,775,000 |
Amortized Cost Basis | 417,955,000 | 440,490,000 |
Fair Value | 421,991,000 | 455,804,000 |
Fair Value Assumptions: | ||
Weighted average yield % | 4.31% | 5.47% |
Weighted Average Remaining Maturity/Duration | 9 years 8 months 19 days | 9 years 7 months 13 days |
FHLB stock | ||
Assets: | ||
Outstanding Face Amount | 72,340,000 | 49,450,000 |
Fair Value | 72,340,000 | 49,450,000 |
FHLB stock | Put Value | ||
Assets: | ||
Outstanding Face Amount | 72,340,000 | 49,450,000 |
Amortized Cost Basis | 72,340,000 | 49,450,000 |
Fair Value | 72,340,000 | 49,450,000 |
Fair Value Assumptions: | ||
Weighted average yield % | 3.50% | 3.50% |
Mortgage loan receivables | ||
Fair Value Assumptions: | ||
Period of short interest rate reset risk | 30 days | 30 days |
Recurring | Nonhedge derivatives | ||
Liabilities: | ||
Derivative liability face amount | 1,428,700,000 | 154,500,000 |
Fair Value | 13,446,000 | 7,031,000 |
Recurring | Nonhedge derivatives | Counterparty quotations | ||
Liabilities: | ||
Derivative liability face amount | 1,428,700,000 | 154,500,000 |
Fair Value | 13,446,000 | 7,031,000 |
Fair Value Assumptions: | ||
Weighted Average Remaining Maturity/Duration | 1 year 4 months 27 days | 4 years 6 months 18 days |
Recurring | CMBS | ||
Assets: | ||
Outstanding Face Amount | 2,247,565,000 | 1,160,741,000 |
Fair Value | 2,305,409,000 | 1,164,936,000 |
Recurring | CMBS | Internal model, third-party inputs | ||
Assets: | ||
Outstanding Face Amount | 2,247,565,000 | |
Amortized Cost Basis | 2,277,995,000 | |
Fair Value | 2,305,409,000 | |
Fair Value Assumptions: | ||
Weighted average yield % | 2.60% | |
Weighted Average Remaining Maturity/Duration | 4 years 2 months 23 days | |
Recurring | CMBS | Broker quotations, pricing services | ||
Assets: | ||
Outstanding Face Amount | 1,160,741,000 | |
Amortized Cost Basis | 1,156,230,000 | |
Fair Value | 1,164,936,000 | |
Fair Value Assumptions: | ||
Weighted average yield % | 4.08% | |
Weighted Average Remaining Maturity/Duration | 4 years 10 months 17 days | |
Recurring | CMBS interest-only | ||
Assets: | ||
Outstanding Face Amount | 7,239,503,000 | 5,702,862,000 |
Fair Value | 378,335,000 | 258,058,000 |
Recurring | CMBS interest-only | Internal model, third-party inputs | ||
Assets: | ||
Outstanding Face Amount | 7,239,503,000 | |
Amortized Cost Basis | 376,085,000 | |
Fair Value | 378,335,000 | |
Fair Value Assumptions: | ||
Weighted average yield % | 4.88% | |
Weighted Average Remaining Maturity/Duration | 3 years 5 months 12 days | |
Recurring | CMBS interest-only | Broker quotations, pricing services | ||
Assets: | ||
Outstanding Face Amount | 5,702,862,000 | |
Amortized Cost Basis | 256,869,000 | |
Fair Value | 258,058,000 | |
Fair Value Assumptions: | ||
Weighted average yield % | 4.19% | |
Weighted Average Remaining Maturity/Duration | 3 years 4 months 17 days | |
Recurring | GNMA interest-only | ||
Assets: | ||
Outstanding Face Amount | 1,400,141,000 | 1,848,270,000 |
Fair Value | 66,642,000 | 99,877,000 |
Recurring | GNMA interest-only | Internal model, third-party inputs | ||
Assets: | ||
Outstanding Face Amount | 1,400,141,000 | |
Amortized Cost Basis | 67,543,000 | |
Fair Value | 66,642,000 | |
Fair Value Assumptions: | ||
Weighted average yield % | 5.90% | |
Weighted Average Remaining Maturity/Duration | 4 years 6 months | |
Recurring | GNMA interest-only | Broker quotations, pricing services | ||
Assets: | ||
Outstanding Face Amount | 1,848,270,000 | |
Amortized Cost Basis | 103,136,000 | |
Fair Value | 99,877,000 | |
Fair Value Assumptions: | ||
Weighted average yield % | 5.32% | |
Weighted Average Remaining Maturity/Duration | 2 years 1 month 13 days | |
Recurring | FHLMC interest-only | ||
Assets: | ||
Outstanding Face Amount | 219,677,000 | |
Fair Value | 8,152,000 | |
Recurring | FHLMC interest-only | Broker quotations, pricing services | ||
Assets: | ||
Outstanding Face Amount | 219,677,000 | |
Amortized Cost Basis | 7,904,000 | |
Fair Value | 8,152,000 | |
Fair Value Assumptions: | ||
Weighted average yield % | 5.21% | |
Weighted Average Remaining Maturity/Duration | 3 years 14 days | |
Recurring | GN construction securities | ||
Assets: | ||
Outstanding Face Amount | 27,538,000 | 12,858,000 |
Fair Value | 28,406,000 | 13,007,000 |
Recurring | GN construction securities | Internal model, third-party inputs | ||
Assets: | ||
Outstanding Face Amount | 27,538,000 | |
Amortized Cost Basis | 28,178,000 | |
Fair Value | 28,406,000 | |
Fair Value Assumptions: | ||
Weighted average yield % | 3.56% | |
Weighted Average Remaining Maturity/Duration | 9 years 5 months 1 day | |
Recurring | GN construction securities | Broker quotations, pricing services | ||
Assets: | ||
Outstanding Face Amount | 12,858,000 | |
Amortized Cost Basis | 13,261,000 | |
Fair Value | 13,007,000 | |
Fair Value Assumptions: | ||
Weighted average yield % | 3.49% | |
Weighted Average Remaining Maturity/Duration | 6 years 6 months 25 days | |
Recurring | GN permanent securities | ||
Assets: | ||
Outstanding Face Amount | 36,232,000 | 108,310,000 |
Fair Value | 36,773,000 | 113,216,000 |
Recurring | GN permanent securities | Internal model, third-party inputs | ||
Assets: | ||
Outstanding Face Amount | 36,232,000 | |
Amortized Cost Basis | 36,515,000 | |
Fair Value | 36,773,000 | |
Fair Value Assumptions: | ||
Weighted average yield % | 4.94% | |
Weighted Average Remaining Maturity/Duration | 1 year 3 months 25 days | |
Recurring | GN permanent securities | Broker quotations, pricing services | ||
Assets: | ||
Outstanding Face Amount | 108,310,000 | |
Amortized Cost Basis | 110,724,000 | |
Fair Value | 113,216,000 | |
Fair Value Assumptions: | ||
Weighted average yield % | 4.64% | |
Weighted Average Remaining Maturity/Duration | 3 years 3 months 7 days | |
Recurring | Nonhedge derivatives | ||
Assets: | ||
Derivative asset face amount | 125,050,000 | 808,700,000 |
Fair Value | 424,000 | 8,244,000 |
Recurring | Nonhedge derivatives | Counterparty quotations | ||
Assets: | ||
Derivative asset face amount | 125,050,000 | 808,700,000 |
Fair Value | $424,000 | $8,244,000 |
Fair Value Assumptions: | ||
Weighted Average Remaining Maturity/Duration | 3 years 5 months 12 days | 6 months |
FAIR_VALUE_OF_FINANCIAL_INSTRU3
FAIR VALUE OF FINANCIAL INSTRUMENTS - Summary of Financial Assets and Liabilities (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Repurchase agreements - short-term | ||
Liabilities: | ||
Outstanding Face Amount | $1,331,603 | $409,334 |
Fair Value | 1,331,603 | 409,334 |
Repurchase agreements - long-term | ||
Liabilities: | ||
Outstanding Face Amount | 100,062 | 200,501 |
Fair Value | 100,062 | 200,501 |
Borrowings under credit agreement | ||
Liabilities: | ||
Outstanding Face Amount | 11,000 | |
Fair Value | 11,000 | |
Borrowings under credit and security agreement | ||
Liabilities: | ||
Outstanding Face Amount | 46,750 | |
Fair Value | 46,750 | |
Revolving credit facility | ||
Liabilities: | ||
Outstanding Face Amount | 25,000 | |
Fair Value | 25,000 | |
Mortgage loan financing | ||
Liabilities: | ||
Outstanding Face Amount | 442,753 | 287,246 |
Fair Value | 455,846 | 278,129 |
Borrowings from the FHLB | ||
Liabilities: | ||
Outstanding Face Amount | 1,611,000 | 989,000 |
Fair Value | 1,616,373 | 987,896 |
Senior unsecured notes | ||
Liabilities: | ||
Outstanding Face Amount | 619,555 | 325,000 |
Fair Value | 611,745 | 341,250 |
Mortgage loan receivables held for investment | ||
Assets: | ||
Outstanding Face Amount | 1,536,923 | 549,574 |
Fair Value | 1,540,388 | 541,578 |
Mortgage loan receivables held for sale | ||
Assets: | ||
Outstanding Face Amount | 417,955 | 440,775 |
Fair Value | 421,991 | 455,804 |
FHLB stock | ||
Assets: | ||
Outstanding Face Amount | 72,340 | 49,450 |
Fair Value | 72,340 | 49,450 |
Level 2 | Repurchase agreements - short-term | ||
Liabilities: | ||
Fair Value | 68,357 | 409,334 |
Level 2 | Repurchase agreements - long-term | ||
Liabilities: | ||
Fair Value | 200,501 | |
Level 2 | Senior unsecured notes | ||
Liabilities: | ||
Fair Value | 341,250 | |
Level 3 | Repurchase agreements - short-term | ||
Liabilities: | ||
Fair Value | 1,263,246 | |
Level 3 | Repurchase agreements - long-term | ||
Liabilities: | ||
Fair Value | 100,062 | |
Level 3 | Borrowings under credit agreement | ||
Liabilities: | ||
Fair Value | 11,000 | |
Level 3 | Borrowings under credit and security agreement | ||
Liabilities: | ||
Fair Value | 46,750 | |
Level 3 | Revolving credit facility | ||
Liabilities: | ||
Fair Value | 25,000 | |
Level 3 | Mortgage loan financing | ||
Liabilities: | ||
Fair Value | 455,846 | 278,129 |
Level 3 | Borrowings from the FHLB | ||
Liabilities: | ||
Fair Value | 1,616,373 | 987,896 |
Level 3 | Senior unsecured notes | ||
Liabilities: | ||
Fair Value | 611,745 | |
Level 3 | Mortgage loan receivables held for investment | ||
Assets: | ||
Fair Value | 1,540,388 | 541,578 |
Level 3 | Mortgage loan receivables held for sale | ||
Assets: | ||
Fair Value | 421,991 | 455,804 |
Level 3 | FHLB stock | ||
Assets: | ||
Fair Value | 72,340 | 49,450 |
Recurring | Nonhedge derivatives | ||
Liabilities: | ||
Derivative liability face amount | 1,428,700 | 154,500 |
Fair Value | 13,446 | 7,031 |
Recurring | CMBS | ||
Assets: | ||
Outstanding Face Amount | 2,247,565 | 1,160,741 |
Fair Value | 2,305,409 | 1,164,936 |
Recurring | CMBS interest-only | ||
Assets: | ||
Outstanding Face Amount | 7,239,503 | 5,702,862 |
Fair Value | 378,335 | 258,058 |
Recurring | GNMA interest-only | ||
Assets: | ||
Outstanding Face Amount | 1,400,141 | 1,848,270 |
Fair Value | 66,642 | 99,877 |
Recurring | FHLMC interest-only | ||
Assets: | ||
Outstanding Face Amount | 219,677 | |
Fair Value | 8,152 | |
Recurring | GN construction securities | ||
Assets: | ||
Outstanding Face Amount | 27,538 | 12,858 |
Fair Value | 28,406 | 13,007 |
Recurring | GN permanent securities | ||
Assets: | ||
Outstanding Face Amount | 36,232 | 108,310 |
Fair Value | 36,773 | 113,216 |
Recurring | Nonhedge derivatives | ||
Assets: | ||
Derivative asset face amount | 125,050 | 808,700 |
Fair Value | 424 | 8,244 |
Recurring | Level 2 | Nonhedge derivatives | ||
Liabilities: | ||
Fair Value | 13,446 | 7,031 |
Recurring | Level 2 | CMBS | ||
Assets: | ||
Fair Value | 1,164,936 | |
Recurring | Level 2 | CMBS interest-only | ||
Assets: | ||
Fair Value | 258,058 | |
Recurring | Level 2 | GNMA interest-only | ||
Assets: | ||
Fair Value | 66,642 | 99,877 |
Recurring | Level 2 | FHLMC interest-only | ||
Assets: | ||
Fair Value | 8,152 | |
Recurring | Level 2 | GN construction securities | ||
Assets: | ||
Fair Value | 28,406 | 13,007 |
Recurring | Level 2 | GN permanent securities | ||
Assets: | ||
Fair Value | 36,773 | 113,216 |
Recurring | Level 2 | Nonhedge derivatives | ||
Assets: | ||
Fair Value | 424 | 8,244 |
Recurring | Level 3 | CMBS | ||
Assets: | ||
Fair Value | 2,305,409 | 0 |
Recurring | Level 3 | CMBS interest-only | ||
Assets: | ||
Fair Value | $378,335 | $0 |
FAIR_VALUE_OF_FINANCIAL_INSTRU4
FAIR VALUE OF FINANCIAL INSTRUMENTS - Schedule of Changes in Level 3 (Details) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Balance at December 31, 2013 | $0 |
Transfer from level 2 | 1,422,995 |
Purchases | 2,121,503 |
Sales | -692,306 |
Paydowns/maturities | -155,525 |
Amortization of premium/discount | -60,993 |
Unrealized gain/(loss) | 19,769 |
Realized gain/(loss) on sale | 28,301 |
Balance at December 31, 2014 | $2,683,744 |
DERIVATIVE_INSTRUMENTS_Schedul
DERIVATIVE INSTRUMENTS - Schedule of Derivatives Outstanding (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Derivative [Line Items] | ||
Notional | $1,553,750,000 | $1,034,450,000 |
Fair value, Asset | 423,501 | 8,244,355 |
Fair value, Liability | 13,445,518 | 7,031,033 |
Caps 1MO LIB | ||
Derivative [Line Items] | ||
Notional | 71,250,000 | 71,250,000 |
Fair value, Asset | 4 | |
Remaining Maturity | 7 months 27 days | 1 month 20 days |
5-year Swap | ||
Derivative [Line Items] | ||
Notional | 496,200,000 | 45,000,000 |
Fair value, Asset | 108,562 | 402,719 |
Fair value, Liability | 27,732 | |
Remaining Maturity | 3 months | 3 months |
Term of derivative contract | 5 years | 5 years |
10-year Swap | ||
Derivative [Line Items] | ||
Notional | 842,800,000 | 753,700,000 |
Fair value, Asset | 103,765 | 7,589,466 |
Fair value, Liability | 8,258,356 | |
Remaining Maturity | 3 months | 3 months |
Term of derivative contract | 10 years | 10 years |
Futures | ||
Derivative [Line Items] | ||
Notional | 1,339,000,000 | 798,700,000 |
Fair value, Asset | 212,327 | 7,992,185 |
Fair value, Liability | 8,286,088 | |
Swaps 3MO LIB | ||
Derivative [Line Items] | ||
Notional | 100,000,000 | 121,000,000 |
Fair value, Liability | 4,505,444 | 6,420,495 |
Remaining Maturity | 3 years 2 months 4 days | 4 years 6 months 4 days |
CMBX | ||
Derivative [Line Items] | ||
Notional | 10,000,000 | 10,000,000 |
Fair value, Asset | 211,170 | 252,170 |
Remaining Maturity | 6 years 9 months 18 days | 8 years 4 months 17 days |
CDX | ||
Derivative [Line Items] | ||
Notional | 33,500,000 | 33,500,000 |
Fair value, Liability | 653,986 | 610,538 |
Remaining Maturity | 3 years 11 months 19 days | 4 years 11 months 19 days |
Credit Derivatives | ||
Derivative [Line Items] | ||
Notional | 43,500,000 | 43,500,000 |
Fair value, Asset | 211,170 | 252,170 |
Fair value, Liability | $653,986 | $610,538 |
DERIVATIVE_INSTRUMENTS_Schedul1
DERIVATIVE INSTRUMENTS - Schedule of Realized Gains (Losses) on Derivatives (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Derivative [Line Items] | |||
Unrealized Gain/(Loss) | ($14,371,225) | $14,028,261 | $12,327,060 |
Realized Gain/(Loss) | -80,426,530 | 14,046,971 | -47,978,049 |
Net Result from Derivative Transactions | -94,797,755 | 28,075,232 | -35,650,989 |
Caps 1MO LIB | |||
Derivative [Line Items] | |||
Unrealized Gain/(Loss) | 4 | -21 | -1,798 |
Realized Gain/(Loss) | -7,125 | 0 | |
Net Result from Derivative Transactions | -7,121 | -21 | -1,798 |
Futures | |||
Derivative [Line Items] | |||
Unrealized Gain/(Loss) | -16,064,974 | 4,419,955 | 5,980,796 |
Realized Gain/(Loss) | -74,945,667 | 19,998,551 | -22,967,881 |
Net Result from Derivative Transactions | -91,010,641 | 24,418,506 | -16,987,085 |
Swaps 3MO LIB | |||
Derivative [Line Items] | |||
Unrealized Gain/(Loss) | 1,780,054 | 11,288,233 | 5,000,099 |
Realized Gain/(Loss) | -5,160,585 | -4,834,218 | -18,616,592 |
Net Result from Derivative Transactions | -3,380,531 | 6,454,015 | -13,616,493 |
Credit Derivatives | |||
Derivative [Line Items] | |||
Unrealized Gain/(Loss) | -86,309 | -1,679,906 | 1,347,963 |
Realized Gain/(Loss) | -313,153 | -1,117,362 | -6,393,576 |
Net Result from Derivative Transactions | ($399,462) | ($2,797,268) | ($5,045,613) |
DERIVATIVE_INSTRUMENTS_Details
DERIVATIVE INSTRUMENTS (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Cash margins held as collateral for derivatives by counterparties | $35,823,128 | $21,959,113 |
Cash collateral held by counterparty | $11,690,412 | $12,656,815 |
OFFSETTING_ASSETS_AND_LIABILIT2
OFFSETTING ASSETS AND LIABILITIES - Schedule of Offsetting Financial Assets and Derivative Assets (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Offsetting of derivative assets | ||
Gross amounts of recognized assets | $423,501 | $8,244,355 |
Gross amounts offset in the balance sheet | 0 | 0 |
Net amounts of assets presented in the balance sheet | 423,501 | 8,244,355 |
Gross amounts not offset in the balance sheet | ||
Financial instruments | 0 | 0 |
Cash collateral received/(posted) | 0 | 0 |
Net amount | $423,501 | $8,244,355 |
OFFSETTING_ASSETS_AND_LIABILIT3
OFFSETTING ASSETS AND LIABILITIES - Schedule of Offsetting Financial Liabilities and Derivative Liabilities (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Offsetting of derivative liabilities | ||
Gross amounts of recognized liabilities | $13,445,518 | $7,031,033 |
Gross amounts offset in the balance sheet | 0 | 0 |
Net amount presented in the balance sheet | 13,445,518 | 7,031,033 |
Gross amounts not offset in the balance sheet | ||
Financial instruments | 0 | 0 |
Cash collateral posted/(received) | 13,445,518 | 7,031,033 |
Net amount | 0 | 0 |
Offsetting of repurchase agreements | ||
Outstanding Amount | 1,431,665,681 | 609,834,793 |
Gross amounts offset in the balance sheet | 0 | 0 |
Net amount presented in the balance sheet | 1,431,665,681 | 609,834,793 |
Gross amounts not offset in the balance sheet | ||
Financial instruments | 1,431,665,681 | 609,834,793 |
Cash collateral posted/(received) | 0 | 0 |
Net amount | 0 | 0 |
Offsetting of financial liabilities and derivative liabilities | ||
Gross amounts of recognized liabilities | 1,445,112,000 | 616,866,000 |
Gross amounts offset in the balance sheet | 0 | 0 |
Net amount presented in the balance sheet | 1,445,112,000 | 616,866,000 |
Gross amounts not offset in the balance sheet | ||
Financial instruments collateral | 1,431,666,000 | 609,835,000 |
Cash collateral posted/(received) | 13,446,000 | 7,031,000 |
Net amount | $0 | $0 |
EQUITY_STRUCTURE_AND_ACCOUNTS_1
EQUITY STRUCTURE AND ACCOUNTS (Details) (USD $) | 0 Months Ended | 12 Months Ended | 1 Months Ended | ||
Feb. 11, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Feb. 10, 2014 | |
Class_of_Stock | |||||
CAPITAL STRUCTURE AND ACCOUNTS | |||||
Number of classes of common stock | 2 | ||||
Consideration received | $0 | ||||
Costs directly attributable to the Company's IPO | 20,523,458 | 20,523,458 | 0 | 0 | |
Class A common stock | |||||
CAPITAL STRUCTURE AND ACCOUNTS | |||||
Number of votes per share | 1 | ||||
Exchange of noncontrolling interest for common stock (in shares) | 874,374 | ||||
Consideration received | $874 | ||||
Class B common stock | |||||
CAPITAL STRUCTURE AND ACCOUNTS | |||||
Number of votes per share | 1 | ||||
Exchange of noncontrolling interest for common stock (in shares) | -874,374 | ||||
Common Units | |||||
CAPITAL STRUCTURE AND ACCOUNTS | |||||
Second cash distributions to partners (as a percent) | 20.00% | ||||
Second cash distributions after completion of second distribution (as a percent) | 20.00% | ||||
Series A participating preferred units | |||||
CAPITAL STRUCTURE AND ACCOUNTS | |||||
Second cash distributions to participating preferred units (as a percent) | 80.00% | ||||
Specified amount up to which second distribution to participating preferred units required (in dollars per unit) | 124 | ||||
Series A and Series B participating preferred units | |||||
CAPITAL STRUCTURE AND ACCOUNTS | |||||
Second cash distributions after completion of second distribution (as a percent) | 80.00% | ||||
LP Units | |||||
CAPITAL STRUCTURE AND ACCOUNTS | |||||
Exchange of noncontrolling interest for common stock (in shares) | 874,374 |
NONCONTROLLING_INTERESTS_Detai
NONCONTROLLING INTERESTS (Details) (USD $) | 3 Months Ended | 12 Months Ended | 11 Months Ended | |||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | |
Joint_Venture | Joint_Venture | |||||||||||
Noncontrolling Interest [Line Items] | ||||||||||||
Rebalancing of ownership percentage between Company and Operating Partnership | $5,329,742 | |||||||||||
Number of consolidated joint ventures | 6 | 6 | 6 | |||||||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest [Abstract] | ||||||||||||
Net income | 11,806,000 | 37,176,000 | 30,243,000 | 18,401,000 | 19,744,000 | 21,187,000 | 59,752,000 | 88,050,000 | 97,626,251 | 188,733,086 | 169,454,280 | |
Comprehensive loss attributable to noncontrolling interest in consolidated joint ventures | -83,000 | 306,000 | -46,000 | 192,000 | 1,796,000 | -1,025,000 | 354,000 | -27,000 | 368,670 | 1,098,150 | 49,084 | |
Net loss attributable to predecessor unitholders | 0 | 0 | 0 | 12,628,000 | 21,540,000 | 20,162,000 | 60,107,000 | 88,023,000 | 12,628,031 | 189,831,236 | 169,503,364 | |
Net (income) attributable to noncontrolling interest in operating partnership | -7,350,000 | -22,827,000 | -17,691,000 | -18,568,000 | -66,436,274 | |||||||
Net income attributable to Class A common shareholders | 4,374,000 | 14,656,000 | 12,505,000 | 12,652,000 | 44,186,678 | |||||||
Minimum | ||||||||||||
Noncontrolling Interest [Line Items] | ||||||||||||
Noncontrolling interest ownership (in percent) | 1.20% | 1.20% | 1.20% | |||||||||
Maximum | ||||||||||||
Noncontrolling Interest [Line Items] | ||||||||||||
Noncontrolling interest ownership (in percent) | 22.50% | 22.50% | 22.50% | |||||||||
Corporate Joint Venture | Condominium | ||||||||||||
Noncontrolling Interest [Line Items] | ||||||||||||
Number of real estate properties | 1 | 1 | 1 | |||||||||
Corporate Joint Venture | Office building | ||||||||||||
Noncontrolling Interest [Line Items] | ||||||||||||
Number of real estate properties | 5 | 5 | 5 | |||||||||
Class A Common Stock | ||||||||||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest [Abstract] | ||||||||||||
Net income attributable to Class A common shareholders | $44,186,678 | $44,187,000 |
EARNINGS_PER_SHARE_Net_Income_
EARNINGS PER SHARE - Net Income and Weighted Average Shares Outstanding (Details) (USD $) | 3 Months Ended | 12 Months Ended | 11 Months Ended | |||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | |
Earnings per share | ||||||
Net income attributable to Class A common shareholders | $4,374,000 | $14,656,000 | $12,505,000 | $12,652,000 | $44,186,678 | |
Weighted average shares outstanding: | ||||||
Basic (in shares) | 49,296,417 | |||||
Diluted (in shares) | 97,583,310 | |||||
Class A common stock | ||||||
Earnings per share | ||||||
Net income attributable to Class A common shareholders | 44,186,678 | 44,187,000 | ||||
Diluted Net income available for Class A common stockholders | $84,228,000 | |||||
Weighted average shares outstanding: | ||||||
Basic (in shares) | 49,296,417 | |||||
Diluted (in shares) | 97,583,310 |
EARNINGS_PER_SHARE_Schedule_of
EARNINGS PER SHARE - Schedule of Calculation of Basic and Diluted EPS (Details) (USD $) | 3 Months Ended | 12 Months Ended | 11 Months Ended | |||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | |
Numerator: | ||||||
Net income attributable to Class A common shareholders | $4,374,000 | $14,656,000 | $12,505,000 | $12,652,000 | $44,186,678 | |
Denominator: | ||||||
Weighted average number of shares of Class A common stock outstanding | 49,296,417 | |||||
Basic net income per share of Class A common stock (in dollars per share) | $0.09 | $0.30 | $0.26 | $0.26 | ||
Numerator: | ||||||
Net income attributable to Class A common shareholders | 4,374,000 | 14,656,000 | 12,505,000 | 12,652,000 | 44,186,678 | |
Denominator: | ||||||
Weighted average number of shares of Class A common stock outstanding | 49,296,417 | |||||
Add - dilutive effect of: | ||||||
Diluted weighted average number of shares of Class A common stock outstanding | 97,583,310 | |||||
Diluted net income per share of Class A common stock (in dollars per share) | $0.09 | $0.28 | $0.22 | $0.24 | ||
Class A common stock | ||||||
Numerator: | ||||||
Net income attributable to Class A common shareholders | 44,186,678 | 44,187,000 | ||||
Denominator: | ||||||
Weighted average number of shares of Class A common stock outstanding | 49,296,417 | |||||
Basic net income per share of Class A common stock (in dollars per share) | $0.90 | $0.90 | ||||
Numerator: | ||||||
Net income attributable to Class A common shareholders | 44,186,678 | 44,187,000 | ||||
Add (deduct) - dilutive effect of: | ||||||
Amounts attributable to operating partnershipbs share of Ladder Capital Corp net income | 66,436,000 | |||||
Additional corporate tax | -26,395,000 | |||||
Diluted net income attributable to Class A common shareholders | $84,228,000 | |||||
Denominator: | ||||||
Weighted average number of shares of Class A common stock outstanding | 49,296,417 | |||||
Add - dilutive effect of: | ||||||
Shares issuable relating to converted Class B common shareholders | 48,145,875 | |||||
Incremental shares of unvested Class A restricted stock | 141,018 | |||||
Diluted weighted average number of shares of Class A common stock outstanding | 97,583,310 | |||||
Diluted net income per share of Class A common stock (in dollars per share) | $0.86 | $0.86 |
STOCK_BASED_COMPENSATION_PLANS2
STOCK BASED COMPENSATION PLANS (Details) (USD $) | 12 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | ||||||||||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Apr. 20, 2010 | Jun. 04, 2012 | Jan. 02, 2012 | 29-May-13 | Jun. 03, 2013 | 20-May-13 | Feb. 01, 2013 | Feb. 11, 2014 | Feb. 28, 2014 | Jul. 03, 2014 | Feb. 13, 2015 | Feb. 10, 2014 | Feb. 12, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||
Weighted-average remaining vesting period over which unrecognized compensation cost is expected to be recognized | 26 months | |||||||||||||||
Equity based compensation expense | $14,450,764 | $2,881,447 | $2,407,773 | |||||||||||||
Unrecognized compensation cost | 15,585,296 | |||||||||||||||
Weighted average remaining vesting period | 25 months 9 days | |||||||||||||||
Share price (in dollars per share) | $17 | |||||||||||||||
Deferred Compensation Plan | ||||||||||||||||
Compensation expense | 47,807,991 | 44,125,314 | 35,627,157 | |||||||||||||
2008 Incentive Equity Plan | Class A Common Units | Certain executives | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||
Number of shares granted | 910,491 | |||||||||||||||
Vesting period | 42 months | |||||||||||||||
2008 Incentive Equity Plan | Class A Common Units | New member of the management team | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||
Number of shares granted | 1,127,543 | |||||||||||||||
Vesting period | 36 months | |||||||||||||||
2008 Incentive Equity Plan | Series B Participating Preferred Units | New member of the management team | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||
Number of shares granted | 31,451.61 | |||||||||||||||
Vesting period | 36 months | |||||||||||||||
Exercised (in shares/units) | 24,193.55 | 14,516.13 | ||||||||||||||
Option to purchase additional units | 24,193.55 | |||||||||||||||
Period within which additional units can be purchased | 1 year | |||||||||||||||
Purchase price of additional units (in dollars per unit) | 124 | |||||||||||||||
Grant date fair value (in dollars per unit) | 130 | |||||||||||||||
Exercised price (in dollars per unit) | $124 | |||||||||||||||
2008 Incentive Equity Plan | Series B Participating Preferred Units | New employee | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||
Number of shares granted | 2,531 | 6,570 | ||||||||||||||
Vesting period | 36 months | |||||||||||||||
2014 Omnibus Incentive Plan | Director | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||
Amount may be paid for service as a chairperson of the audit committee or compensation committee | 15,000 | |||||||||||||||
Amount may be paid for service as a chairperson of the nominating and corporate governance committee | 10,000 | |||||||||||||||
2014 Omnibus Incentive Plan | Restricted stock awards | Grantees | Time-based vesting | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||
Vesting percentage | 50.00% | |||||||||||||||
2014 Omnibus Incentive Plan | Restricted stock awards | Grantees | Eighteen month anniversary | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||
Vesting period | 18 months | |||||||||||||||
Percentage of awards vested | 25.00% | |||||||||||||||
2014 Omnibus Incentive Plan | Restricted stock awards | Grantees | Three year anniversary | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||
Vesting period | 3 years | |||||||||||||||
Percentage of awards vested | 75.00% | |||||||||||||||
2014 Omnibus Incentive Plan | Restricted stock awards | Grantees | Performance-based vesting | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||
Vesting percentage | 50.00% | |||||||||||||||
Number of installments in which awards are vested | 3 | |||||||||||||||
Minimum performance target percentage | 8.00% | |||||||||||||||
Performance period | 3 years | |||||||||||||||
2014 Omnibus Incentive Plan | Restricted stock awards | Harris | Time-based vesting | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||
Vesting period | 3 years | |||||||||||||||
Number of installments in which awards are vested | 3 | |||||||||||||||
Portion of compensation expense to be recognized annually (as a percent) | 33.00% | |||||||||||||||
Weighted-average remaining vesting period over which unrecognized compensation cost is expected to be recognized | 3 years | |||||||||||||||
2014 Omnibus Incentive Plan | Restricted stock awards | Mr. Fishman | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||
Vesting period | 3 years | |||||||||||||||
Number of installments in which awards are vested | 3 | |||||||||||||||
Grant date fair value of awards granted | 1,000,000 | |||||||||||||||
Grant date fair value of awards to be granted | 50,000 | |||||||||||||||
2014 Omnibus Incentive Plan | Restricted stock awards | Joel C. Peterson | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||
Vesting period | 3 years | |||||||||||||||
Number of installments in which awards are vested | 3 | |||||||||||||||
Grant date fair value of awards granted | 75,000 | |||||||||||||||
Grant date fair value of awards to be granted | 50,000 | |||||||||||||||
Annual cash payment for service on our board of directors | 75,000 | |||||||||||||||
2014 Omnibus Incentive Plan | Restricted stock awards | Douglas Durst | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||
Vesting period | 3 years | |||||||||||||||
Number of installments in which awards are vested | 3 | |||||||||||||||
Grant date fair value of awards granted | 75,000 | |||||||||||||||
Grant date fair value of awards to be granted | 50,000 | |||||||||||||||
Annual cash payment for service on our board of directors | 75,000 | |||||||||||||||
2014 Omnibus Incentive Plan | Restricted stock awards | Director | Time-based vesting | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||
Portion of compensation expense to be recognized annually (as a percent) | 33.00% | |||||||||||||||
Weighted-average remaining vesting period over which unrecognized compensation cost is expected to be recognized | 3 years | |||||||||||||||
2014 Omnibus Incentive Plan | Restricted stock awards | Officers other than Mr. Harris, and certain employees | Time-based vesting | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||
Portion of compensation expense to be recognized annually (as a percent) | 33.00% | |||||||||||||||
Weighted-average remaining vesting period over which unrecognized compensation cost is expected to be recognized | 3 years | |||||||||||||||
2014 Omnibus Incentive Plan | Class A Common Shares | Grantees | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||
Number of shares granted | 1,619,865 | |||||||||||||||
Aggregate value of awards granted | 27,489,109 | |||||||||||||||
2014 Omnibus Incentive Plan | Class A Common Shares | Mr. Fishman/Mr. Peterson/Mr. Durst | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||
Number of shares granted | 67,648 | |||||||||||||||
The Plan | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||
Employee's contribution | 6,427,127 | |||||||||||||||
Percentage of compensation expensed upon contribution | 100.00% | |||||||||||||||
Total employee's contribution, net of forfeitures and payouts related to terminations | 12,805,535 | |||||||||||||||
Units outstanding | 653,010 | |||||||||||||||
Units unvested | 197,583 | |||||||||||||||
The Plan | Class A Common Stock | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||
Share price (in dollars per share) | $17 | |||||||||||||||
2014 Deferred Compensation Plan | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||
Vesting period | 3 years | |||||||||||||||
Vesting percentage | 33.00% | |||||||||||||||
2014 Deferred Compensation Plan | Maximum | ||||||||||||||||
Deferred Compensation Plan | ||||||||||||||||
Period of termination following a change in control during which participant will fully vest in their unvested account balances | 6 months | |||||||||||||||
Period of payment following the end of the participant's employment | 60 days | |||||||||||||||
Subsequent Event | ||||||||||||||||
Deferred Compensation Plan | ||||||||||||||||
Bonus payment to employees | 62,311,750 | |||||||||||||||
Bonus payment allocated to equity based compensation | $14,410,500 |
STOCK_BASED_COMPENSATION_PLANS3
STOCK BASED COMPENSATION PLANS - Summary of Grants (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Amortization to compensation expense | ($14,450,764) | ($2,881,447) | ($2,407,773) |
2008 Incentive Equity Plan and 2014 Omnibus Incentive Plan | Class A Common Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted | 1,127,543 | ||
Weighted Average Fair Value (in dollars) | 1,360,106 | ||
2008 Incentive Equity Plan and 2014 Omnibus Incentive Plan | Series B Participating Preferred Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted | 7,613 | 31,452 | |
Weighted Average Fair Value (in dollars) | 1,157,176 | 4,088,710 | |
2008 Incentive Equity Plan and 2014 Omnibus Incentive Plan | Class A Common Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted | 1,687,513 | ||
Weighted Average Fair Value (in dollars) | 28,637,096 | ||
Amortization to compensation expense | -12,108,371 | ||
2008 Incentive Equity Plan and 2014 Omnibus Incentive Plan | LP Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Amortization to compensation expense | -2,052,222 | ||
Predecessor | 2008 Incentive Equity Plan and 2014 Omnibus Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Amortization to compensation expense | ($290,171) | ($2,881,447) | ($2,407,773) |
STOCK_BASED_COMPENSATION_PLANS4
STOCK BASED COMPENSATION PLANS - Nonvested Shares Outstanding (Details) (2008 Incentive Equity Plan and 2014 Omnibus Incentive Plan) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Class A Common Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Granted | 1,687,513 | ||
31-Dec-14 | 1,687,513 | ||
Class A Common Units | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Outstanding at January 1, 2014 | 365,407 | ||
Granted | 1,127,543 | ||
Vested | -32,365 | ||
Converted | -333,042 | ||
Series B Participating Preferred Units | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Outstanding at January 1, 2014 | 14,276 | ||
Granted | 7,613 | 31,452 | |
Vested | -1,158 | ||
Converted | -13,118 | ||
31-Dec-14 | 14,276 | ||
LP Units | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Vested | -3,116,574 | ||
Converted | 3,186,066 | ||
31-Dec-14 | 69,492 |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | 11 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | ||
Corporate taxes payable | $778,146 | $0 |
NYC UBT taxes payable | 145,548 | 482,324 |
Net deferred tax assets | 8,188,553 | |
Liability for unrecognized tax benefits for uncertain income tax positions | 0 | |
Percentage of applicable cash saving in income tax distributable to specified unitholders | 85.00% | |
Percentage of applicable cash saving in income tax available for the entity | 15.00% | |
Amount due pursuant to tax receivable agreement | 861,929 | 0 |
Prepaid corporate taxes | $12,497,070 | $0 |
INCOME_TAXES_Schedule_of_Incom
INCOME TAXES - Schedule of Income Taxes Provision (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Current expense | |||
Federal | $23,608,814 | ||
State and local | 10,170,483 | ||
Total current expense | 33,779,297 | ||
Deferred expense/(benefit) | |||
Federal | -4,356,908 | ||
State and local | -2,817,613 | ||
Total deferred expense/(benefit) | -7,174,521 | ||
Provision for income tax expense | $26,604,776 | $3,729,778 | $2,583,999 |
INCOME_TAXES_Reconciliation_Be
INCOME TAXES - Reconciliation Between Statutory and Effective Tax Rate (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Reconciliation between the U.S. federal statutory income tax rate and the effective tax rate | |
US statutory tax rate (as a percent) | 35.00% |
Benefit of partnership income not subject to taxation (as a percent) | -15.45% |
Increase due to state and local taxes (as a percent) | 3.78% |
Other | -1.92% |
Effective income tax rate (as a percent) | 21.41% |
INCOME_TAXES_Deferred_Tax_Asse
INCOME TAXES - Deferred Tax Assets and Liabilities (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Deferred Tax Assets | ||
Fixed assets | $232,318 | |
Equity based compensation | 694,356 | |
Unrealized gains and losses | 616,220 | |
Basis difference in Operating Partnership investment | 5,979,516 | |
Section 197 intangibles | 778,149 | |
Total Deferred Tax Assets | 8,300,559 | 0 |
Deferred Tax Liabilities | ||
Other | 112,006 | |
Total Deferred Tax Liabilities | 112,006 | |
Net Deferred Tax Assets/(Liabilities) | $8,188,553 |
RELATED_PARTY_TRANSACTIONS_Det
RELATED PARTY TRANSACTIONS (Details) (Meridian, USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Meridian | |||
RELATED PARTY TRANSACTIONS | |||
Fees incurred for loans originated | $360,332 | $425,000 | $1,683,594 |
Fees accrued and payable | $631,603 | $425,000 |
COMMITMENTS_AND_CONTINGENCIES_1
COMMITMENTS AND CONTINGENCIES - Future Minimum Rental Payments (Details) (USD $) | Dec. 31, 2014 |
Future minimum rental payments | |
2015 | $1,381,992 |
2016 | 1,125,069 |
2017 | 1,180,400 |
2018 | 1,180,400 |
2019 | 1,180,400 |
Thereafter | 2,459,167 |
Total | $8,507,428 |
COMMITMENTS_AND_CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
lease | Extension_Option | |||
Extension_Option | ||||
Unfunded Loan Commitments | ||||
Additional term of lease | 5 years | |||
Number of extension options | 0 | 0 | ||
Number of leases | 1 | |||
Rent expense | $1,837,908 | $1,738,083 | $1,738,083 | |
Mortgage loan receivables held for investment | ||||
Unfunded Loan Commitments | ||||
Unfunded commitments of mortgage loan receivables held for investment | 158,135,204 | 71,514,519 | ||
First mortgage loan financing | ||||
Unfunded Loan Commitments | ||||
Unfunded commitments of mortgage loan receivables held for investment | 65,314,519 | |||
Mezzanine loan financing | ||||
Unfunded Loan Commitments | ||||
Unfunded commitments of mortgage loan receivables held for investment | 6,200,000 | |||
Commitment to purchase GN construction loan securities | ||||
Unfunded Loan Commitments | ||||
Commitment to purchase loan securities | 60,048,030 | 150,271,380 | ||
Funded | 49,438,444 | 112,780,499 | ||
Remaining to be funded | 10,609,587 | 37,490,881 | ||
Fair value of commitments | $63,614 | ($176,736) | ||
Commitment to purchase GN construction loan securities | Minimum | ||||
Unfunded Loan Commitments | ||||
Period over which commitment is made to purchase loan securities | 9 months | |||
Fixed prices (in dollars per unit) | $102 | $102 | ||
Commitment to purchase GN construction loan securities | Maximum | ||||
Unfunded Loan Commitments | ||||
Period over which commitment is made to purchase loan securities | 15 months | |||
Fixed prices (in dollars per unit) | $104.40 | $107.30 |
SEGMENT_REPORTING_Details
SEGMENT REPORTING (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
segment | |||||||||||
SEGMENT REPORTING | |||||||||||
Number of reportable segments | 3 | ||||||||||
Interest income | $56,931,000 | $48,459,000 | $45,112,000 | $36,822,000 | $30,516,000 | $29,633,000 | $30,168,000 | $31,261,000 | $187,325,020 | $121,577,676 | $136,198,204 |
Interest expense | -77,574,167 | -48,744,659 | -36,440,373 | ||||||||
Net interest income | 109,750,853 | 72,833,017 | 99,757,831 | ||||||||
Provision for loan losses | -600,000 | -600,000 | -448,833 | ||||||||
Net interest income after provision for loan losses | 30,728,000 | 28,381,000 | 28,211,000 | 21,831,000 | 17,324,000 | 16,929,000 | 18,076,000 | 19,904,000 | 109,150,853 | 72,233,017 | 99,308,998 |
Operating lease income | 56,649,278 | 37,394,416 | 8,331,338 | ||||||||
Tenant recoveries | 9,182,952 | 3,271,095 | 0 | ||||||||
Sale of loans, net | 145,274,603 | 146,708,264 | 151,661,150 | ||||||||
Gain on securities | 26,977,268 | 4,230,953 | 19,013,960 | ||||||||
Unrealized gain (loss) on Agency interest-only securities | 2,143,765 | -2,665,188 | -5,680,893 | ||||||||
Sale of real estate, net | 29,760,115 | 13,565,164 | 1,275,235 | ||||||||
Fee income | 11,703,791 | 7,921,430 | 8,787,695 | ||||||||
Net result from derivative transactions | -94,797,755 | 28,075,232 | -35,650,989 | ||||||||
Earnings from investment in unconsolidated joint ventures | 1,990,117 | 3,203,358 | 1,256,109 | ||||||||
Gain on assignment of mortgage loan financing | 431,465 | 0 | 0 | ||||||||
Loss on extinguishment of debt | -149,738 | 0 | 0 | ||||||||
Total other income | 31,906,000 | 61,337,000 | 55,489,000 | 40,434,000 | 36,227,000 | 35,525,000 | 70,346,000 | 99,606,000 | 189,165,861 | 241,704,724 | 148,993,605 |
Salaries and employee benefits | -82,143,674 | -61,038,260 | -51,090,424 | ||||||||
Operating expenses | -25,397,672 | -14,937,488 | -9,571,881 | ||||||||
Real estate operating expenses | -32,670,045 | -17,403,945 | 0 | ||||||||
Real estate acquisition costs | -2,403,450 | -3,625,773 | -5,797,213 | ||||||||
Fee expense | -3,023,409 | -2,954,839 | -6,164,187 | ||||||||
Depreciation and amortization | -28,447,437 | -21,514,572 | -3,640,619 | ||||||||
Total costs and expenses | -48,045,000 | -42,207,000 | -45,258,000 | -38,575,000 | -33,528,000 | -30,603,000 | -27,951,000 | -29,393,000 | -174,085,687 | -121,474,877 | -76,264,324 |
Tax expense | -26,604,776 | -3,729,778 | -2,583,999 | ||||||||
Net income | 11,806,000 | 37,176,000 | 30,243,000 | 18,401,000 | 19,744,000 | 21,187,000 | 59,752,000 | 88,050,000 | 97,626,251 | 188,733,086 | 169,454,280 |
Total assets | 5,823,660,960 | 3,489,063,267 | 5,823,660,960 | 3,489,063,267 | |||||||
Companybs investment in unconsolidated joint ventures | 6,041,333 | 9,262,762 | 6,041,333 | 9,262,762 | |||||||
Investment in FHLB stock | 72,340,000 | 49,450,000 | 72,340,000 | 49,450,000 | |||||||
Deferred tax assets | 8,300,559 | 0 | 8,300,559 | 0 | |||||||
Operating Segment | Loans | |||||||||||
SEGMENT REPORTING | |||||||||||
Interest income | 113,943,457 | 63,894,000 | 56,835,000 | ||||||||
Interest expense | -13,205,000 | -4,592,000 | -9,212,000 | ||||||||
Net interest income | 100,738,000 | 59,302,000 | 47,623,000 | ||||||||
Provision for loan losses | -600,000 | -600,000 | -449,000 | ||||||||
Net interest income after provision for loan losses | 100,138,000 | 58,702,000 | 47,174,000 | ||||||||
Operating lease income | 0 | 0 | 0 | ||||||||
Tenant recoveries | 0 | 0 | |||||||||
Sale of loans, net | 145,275,000 | 146,708,000 | 151,661,000 | ||||||||
Gain on securities | 0 | 0 | 0 | ||||||||
Unrealized gain (loss) on Agency interest-only securities | 0 | 0 | 0 | ||||||||
Sale of real estate, net | 1,525,000 | 0 | 0 | ||||||||
Fee income | 3,854,000 | 2,963,000 | 6,886,000 | ||||||||
Net result from derivative transactions | -34,599,000 | 15,836,000 | -25,236,000 | ||||||||
Earnings from investment in unconsolidated joint ventures | 0 | 0 | 0 | ||||||||
Gain on assignment of mortgage loan financing | 0 | ||||||||||
Loss on extinguishment of debt | 0 | ||||||||||
Total other income | 116,055,000 | 165,507,000 | 133,311,000 | ||||||||
Salaries and employee benefits | -22,400,000 | -26,250,000 | -21,500,000 | ||||||||
Operating expenses | 235,000 | 201,000 | 0 | ||||||||
Real estate operating expenses | 0 | 0 | 0 | ||||||||
Real estate acquisition costs | 0 | 0 | |||||||||
Fee expense | -2,172,000 | -1,981,000 | -5,635,000 | ||||||||
Depreciation and amortization | 0 | 0 | 0 | ||||||||
Total costs and expenses | -24,337,000 | -28,030,000 | -27,135,000 | ||||||||
Tax expense | 0 | 0 | 0 | ||||||||
Net income | 191,856,000 | 196,179,000 | 153,350,000 | ||||||||
Total assets | 1,939,008,000 | 979,568,000 | 1,939,008,000 | 979,568,000 | |||||||
Operating Segment | Securities | |||||||||||
SEGMENT REPORTING | |||||||||||
Interest income | 73,330,827 | 57,636,000 | 80,613,000 | ||||||||
Interest expense | -6,588,000 | -3,289,000 | -15,807,000 | ||||||||
Net interest income | 66,743,000 | 54,347,000 | 64,806,000 | ||||||||
Provision for loan losses | 0 | 0 | 0 | ||||||||
Net interest income after provision for loan losses | 66,743,000 | 54,347,000 | 64,806,000 | ||||||||
Operating lease income | 0 | 0 | 0 | ||||||||
Tenant recoveries | 0 | 0 | |||||||||
Sale of loans, net | 0 | 0 | 0 | ||||||||
Gain on securities | 26,977,000 | 4,231,000 | 19,014,000 | ||||||||
Unrealized gain (loss) on Agency interest-only securities | 2,144,000 | -2,665,000 | -5,681,000 | ||||||||
Sale of real estate, net | 0 | 0 | 0 | ||||||||
Fee income | 0 | 195,000 | 251,000 | ||||||||
Net result from derivative transactions | -60,199,000 | 12,239,000 | -10,415,000 | ||||||||
Earnings from investment in unconsolidated joint ventures | 0 | 0 | 0 | ||||||||
Gain on assignment of mortgage loan financing | 0 | ||||||||||
Loss on extinguishment of debt | 0 | ||||||||||
Total other income | -31,078,000 | 14,000,000 | 3,169,000 | ||||||||
Salaries and employee benefits | 0 | 0 | 0 | ||||||||
Operating expenses | 0 | 0 | 0 | ||||||||
Real estate operating expenses | 0 | 0 | 0 | ||||||||
Real estate acquisition costs | 0 | 0 | |||||||||
Fee expense | -65,000 | -375,000 | -107,000 | ||||||||
Depreciation and amortization | 0 | 0 | 0 | ||||||||
Total costs and expenses | -65,000 | -375,000 | -107,000 | ||||||||
Tax expense | 0 | 0 | 0 | ||||||||
Net income | 35,600,000 | 67,972,000 | 67,868,000 | ||||||||
Total assets | 2,815,566,000 | 1,657,246,000 | 2,815,566,000 | 1,657,246,000 | |||||||
Operating Segment | Real Estate | |||||||||||
SEGMENT REPORTING | |||||||||||
Interest income | 0 | 0 | 0 | ||||||||
Interest expense | -15,984,000 | -7,673,000 | -3,595,000 | ||||||||
Net interest income | -15,984,000 | -7,673,000 | -3,595,000 | ||||||||
Provision for loan losses | 0 | 0 | 0 | ||||||||
Net interest income after provision for loan losses | -15,984,000 | -7,673,000 | -3,595,000 | ||||||||
Operating lease income | 56,649,000 | 37,394,000 | 8,331,000 | ||||||||
Tenant recoveries | 9,183,000 | 3,271,000 | |||||||||
Sale of loans, net | 0 | 0 | 0 | ||||||||
Gain on securities | 0 | 0 | 0 | ||||||||
Unrealized gain (loss) on Agency interest-only securities | 0 | 0 | 0 | ||||||||
Sale of real estate, net | 28,235,000 | 13,565,000 | 1,275,000 | ||||||||
Fee income | 5,374,000 | 312,000 | 823,000 | ||||||||
Net result from derivative transactions | 0 | 0 | 0 | ||||||||
Earnings from investment in unconsolidated joint ventures | 900,000 | 0 | 0 | ||||||||
Gain on assignment of mortgage loan financing | 431,000 | ||||||||||
Loss on extinguishment of debt | 0 | ||||||||||
Total other income | 100,772,000 | 54,542,000 | 10,429,000 | ||||||||
Salaries and employee benefits | 0 | 0 | 0 | ||||||||
Operating expenses | 0 | -7,000 | -672,000 | ||||||||
Real estate operating expenses | -32,670,000 | -17,404,000 | -5,797,000 | ||||||||
Real estate acquisition costs | -2,399,000 | -3,626,000 | |||||||||
Fee expense | -83,000 | -33,000 | -128,000 | ||||||||
Depreciation and amortization | -28,271,000 | -20,967,000 | -3,093,000 | ||||||||
Total costs and expenses | -63,423,000 | -42,037,000 | -9,690,000 | ||||||||
Tax expense | 0 | 0 | 0 | ||||||||
Net income | 21,365,000 | 4,832,000 | -2,856,000 | ||||||||
Total assets | 771,129,000 | 626,362,000 | 771,129,000 | 626,362,000 | |||||||
Corporate / Other | |||||||||||
SEGMENT REPORTING | |||||||||||
Interest income | 50,736 | 48,000 | -1,250,000 | ||||||||
Interest expense | -41,797,000 | -33,191,000 | -7,826,000 | ||||||||
Net interest income | -41,746,000 | -33,143,000 | -9,076,000 | ||||||||
Provision for loan losses | 0 | 0 | 0 | ||||||||
Net interest income after provision for loan losses | -41,746,000 | -33,143,000 | -9,076,000 | ||||||||
Operating lease income | 0 | 0 | 0 | ||||||||
Tenant recoveries | 0 | 0 | |||||||||
Sale of loans, net | 0 | 0 | 0 | ||||||||
Gain on securities | 0 | 0 | 0 | ||||||||
Unrealized gain (loss) on Agency interest-only securities | 0 | 0 | 0 | ||||||||
Sale of real estate, net | 0 | 0 | 0 | ||||||||
Fee income | 2,476,000 | 4,452,000 | 828,000 | ||||||||
Net result from derivative transactions | 0 | 0 | 0 | ||||||||
Earnings from investment in unconsolidated joint ventures | 1,090,000 | 3,203,000 | 1,256,000 | ||||||||
Gain on assignment of mortgage loan financing | 0 | ||||||||||
Loss on extinguishment of debt | -150,000 | ||||||||||
Total other income | 3,416,000 | 7,655,000 | 2,084,000 | ||||||||
Salaries and employee benefits | -59,744,000 | -34,788,000 | -29,590,000 | ||||||||
Operating expenses | -25,633,000 | -15,131,000 | -8,900,000 | ||||||||
Real estate operating expenses | 0 | 0 | 0 | ||||||||
Real estate acquisition costs | -4,000 | 0 | |||||||||
Fee expense | -703,000 | -566,000 | -294,000 | ||||||||
Depreciation and amortization | -176,000 | -547,000 | -548,000 | ||||||||
Total costs and expenses | -86,260,000 | -51,032,000 | -39,332,000 | ||||||||
Tax expense | -26,605,000 | -3,730,000 | -2,584,000 | ||||||||
Net income | -151,195,000 | -80,250,000 | -48,908,000 | ||||||||
Total assets | 297,958,000 | 225,887,000 | 297,958,000 | 225,887,000 | |||||||
Grace Lake JV, LLC | |||||||||||
SEGMENT REPORTING | |||||||||||
Earnings from investment in unconsolidated joint ventures | 900,000 | 635,000 | 0 | ||||||||
Companybs investment in unconsolidated joint ventures | 2,142,898 | 2,142,898 | 2,142,898 | 2,142,898 | |||||||
LCRIP I | |||||||||||
SEGMENT REPORTING | |||||||||||
Fee income | 391,955 | 785,925 | 744,182 | ||||||||
Earnings from investment in unconsolidated joint ventures | 1,090,117 | 2,568,358 | 1,256,109 | ||||||||
Companybs investment in unconsolidated joint ventures | $3,898,435 | $7,119,864 | $3,898,435 | $7,119,864 |
SELECTED_QUARTERLY_DATA_UNAUDI2
SELECTED QUARTERLY DATA (UNAUDITED) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Quarterly consolidated financial data | |||||||||||
Interest income | $56,931,000 | $48,459,000 | $45,112,000 | $36,822,000 | $30,516,000 | $29,633,000 | $30,168,000 | $31,261,000 | $187,325,020 | $121,577,676 | $136,198,204 |
Net interest income after provision for loan losses | 30,728,000 | 28,381,000 | 28,211,000 | 21,831,000 | 17,324,000 | 16,929,000 | 18,076,000 | 19,904,000 | 109,150,853 | 72,233,017 | 99,308,998 |
Other income | 31,906,000 | 61,337,000 | 55,489,000 | 40,434,000 | 36,227,000 | 35,525,000 | 70,346,000 | 99,606,000 | 189,165,861 | 241,704,724 | 148,993,605 |
Costs and expenses | 48,045,000 | 42,207,000 | 45,258,000 | 38,575,000 | 33,528,000 | 30,603,000 | 27,951,000 | 29,393,000 | 174,085,687 | 121,474,877 | 76,264,324 |
Costs and expenses | 14,589,000 | 47,511,000 | 38,442,000 | 23,690,000 | 20,023,000 | 21,851,000 | 60,471,000 | 90,117,000 | 124,231,027 | 192,462,864 | 172,038,279 |
Net income | 11,806,000 | 37,176,000 | 30,243,000 | 18,401,000 | 19,744,000 | 21,187,000 | 59,752,000 | 88,050,000 | 97,626,251 | 188,733,086 | 169,454,280 |
Comprehensive loss attributable to noncontrolling interest in consolidated joint ventures | -83,000 | 306,000 | -46,000 | 192,000 | 1,796,000 | -1,025,000 | 354,000 | -27,000 | 368,670 | 1,098,150 | 49,084 |
Net loss attributable to predecessor unitholders | 0 | 0 | 0 | 12,628,000 | 21,540,000 | 20,162,000 | 60,107,000 | 88,023,000 | 12,628,031 | 189,831,236 | 169,503,364 |
Net (income) loss attributable to noncontrolling interest in operating partnership | -7,350,000 | -22,827,000 | -17,691,000 | -18,568,000 | -66,436,274 | ||||||
Net income attributable to Class A common shareholders | $4,374,000 | $14,656,000 | $12,505,000 | $12,652,000 | $44,186,678 | ||||||
Basic (in dollars per share) | $0.09 | $0.30 | $0.26 | $0.26 | |||||||
Diluted (in dollars per share) | $0.09 | $0.28 | $0.22 | $0.24 |
Schedule_III_Real_Estate_and_A1
Schedule III - Real Estate and Accumulated Depreciation (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Real Estate And Accumulated Depreciation | ||
Encumbrances | $468,918,000 | |
Initial Cost to Company | ||
Land | 124,901,000 | |
Building | 639,031,000 | |
Intangibles | 120,054,000 | |
Cost Capitalized Subsequent to Acquisition | 5,184,000 | |
Gross Amount at which Carried at Close of Period | ||
Land | 122,458,000 | |
Buildings | 569,774,000 | |
Intangibles | 127,359,000 | |
Total | 819,591,000 | 649,820,000 |
Accumulated Depreciation | 50,605,000 | 25,601,000 |
Aggregate cost for Federal income tax purposes | 819,590,851 | |
Reconciliation of Real Estate | ||
Balance at the beginning of the period | 649,820,000 | 384,082,000 |
Improvements and additions | 267,367,000 | 289,383,000 |
Acquisitions through foreclosure | 0 | 0 |
Dispositions | -97,596,000 | -23,645,000 |
Impairments | 0 | 0 |
Balance at the end of the period | 819,591,000 | 649,820,000 |
Reconciliation of Accumulated Depreciation and Amortization: | ||
Balance at the beginning of the period | 25,601,000 | 4,061,000 |
Additions | 28,916,000 | 21,821,000 |
Dispositions | -3,912,000 | -281,000 |
Balance at the end of the period | 50,605,000 | 25,601,000 |
Retail property | ||
Real Estate And Accumulated Depreciation | ||
Encumbrances | 254,108,000 | |
Initial Cost to Company | ||
Land | 70,334,000 | |
Building | 287,816,000 | |
Intangibles | 56,962,000 | |
Cost Capitalized Subsequent to Acquisition | 0 | |
Gross Amount at which Carried at Close of Period | ||
Land | 70,334,000 | |
Buildings | 287,816,000 | |
Intangibles | 61,900,000 | |
Total | 420,050,000 | |
Accumulated Depreciation | 21,135,000 | |
Reconciliation of Real Estate | ||
Balance at the end of the period | 420,050,000 | |
Reconciliation of Accumulated Depreciation and Amortization: | ||
Balance at the end of the period | 21,135,000 | |
Retail property | Millbrook, AL | ||
Real Estate And Accumulated Depreciation | ||
Encumbrances | 4,656,000 | |
Initial Cost to Company | ||
Land | 970,000 | |
Building | 5,972,000 | |
Intangibles | 0 | |
Cost Capitalized Subsequent to Acquisition | 0 | |
Gross Amount at which Carried at Close of Period | ||
Land | 970,000 | |
Buildings | 5,972,000 | |
Intangibles | 0 | |
Total | 6,942,000 | |
Accumulated Depreciation | 519,000 | |
Reconciliation of Real Estate | ||
Balance at the end of the period | 6,942,000 | |
Reconciliation of Accumulated Depreciation and Amortization: | ||
Balance at the end of the period | 519,000 | |
Retail property | Millbrook, AL | Minimum | ||
Gross Amount at which Carried at Close of Period | ||
Estimated useful lives of real estate | 32 years | |
Retail property | Greenwood, AR | ||
Real Estate And Accumulated Depreciation | ||
Encumbrances | 3,453,000 | |
Initial Cost to Company | ||
Land | 1,038,000 | |
Building | 3,415,000 | |
Intangibles | 694,000 | |
Cost Capitalized Subsequent to Acquisition | 0 | |
Gross Amount at which Carried at Close of Period | ||
Land | 1,038,000 | |
Buildings | 3,415,000 | |
Intangibles | 694,000 | |
Total | 5,147,000 | |
Accumulated Depreciation | 352,000 | |
Reconciliation of Real Estate | ||
Balance at the end of the period | 5,147,000 | |
Reconciliation of Accumulated Depreciation and Amortization: | ||
Balance at the end of the period | 352,000 | |
Retail property | Greenwood, AR | Minimum | ||
Gross Amount at which Carried at Close of Period | ||
Estimated useful lives of real estate | 13 years | |
Retail property | Greenwood, AR | Maximum | ||
Gross Amount at which Carried at Close of Period | ||
Estimated useful lives of real estate | 43 years | |
Retail property | El Centro, CA | ||
Real Estate And Accumulated Depreciation | ||
Encumbrances | 2,988,000 | |
Initial Cost to Company | ||
Land | 569,000 | |
Building | 3,133,000 | |
Intangibles | 575,000 | |
Cost Capitalized Subsequent to Acquisition | 0 | |
Gross Amount at which Carried at Close of Period | ||
Land | 569,000 | |
Buildings | 3,133,000 | |
Intangibles | 575,000 | |
Total | 4,277,000 | |
Accumulated Depreciation | 49,000 | |
Reconciliation of Real Estate | ||
Balance at the end of the period | 4,277,000 | |
Reconciliation of Accumulated Depreciation and Amortization: | ||
Balance at the end of the period | 49,000 | |
Retail property | El Centro, CA | Minimum | ||
Gross Amount at which Carried at Close of Period | ||
Estimated useful lives of real estate | 15 years | |
Retail property | El Centro, CA | Maximum | ||
Gross Amount at which Carried at Close of Period | ||
Estimated useful lives of real estate | 50 years | |
Retail property | Bennett, CO | ||
Real Estate And Accumulated Depreciation | ||
Encumbrances | 2,501,000 | |
Initial Cost to Company | ||
Land | 470,000 | |
Building | 2,503,000 | |
Intangibles | 549,000 | |
Cost Capitalized Subsequent to Acquisition | 0 | |
Gross Amount at which Carried at Close of Period | ||
Land | 470,000 | |
Buildings | 2,503,000 | |
Intangibles | 563,000 | |
Total | 3,536,000 | |
Accumulated Depreciation | 32,000 | |
Reconciliation of Real Estate | ||
Balance at the end of the period | 3,536,000 | |
Reconciliation of Accumulated Depreciation and Amortization: | ||
Balance at the end of the period | 32,000 | |
Retail property | Bennett, CO | Minimum | ||
Gross Amount at which Carried at Close of Period | ||
Estimated useful lives of real estate | 14 years | |
Retail property | Bennett, CO | Maximum | ||
Gross Amount at which Carried at Close of Period | ||
Estimated useful lives of real estate | 34 years | |
Retail property | Woodland Park, CO | ||
Real Estate And Accumulated Depreciation | ||
Encumbrances | 2,821,000 | |
Initial Cost to Company | ||
Land | 668,000 | |
Building | 2,681,000 | |
Intangibles | 620,000 | |
Cost Capitalized Subsequent to Acquisition | 0 | |
Gross Amount at which Carried at Close of Period | ||
Land | 668,000 | |
Buildings | 2,681,000 | |
Intangibles | 620,000 | |
Total | 3,969,000 | |
Accumulated Depreciation | 18,000 | |
Reconciliation of Real Estate | ||
Balance at the end of the period | 3,969,000 | |
Reconciliation of Accumulated Depreciation and Amortization: | ||
Balance at the end of the period | 18,000 | |
Retail property | Woodland Park, CO | Minimum | ||
Gross Amount at which Carried at Close of Period | ||
Estimated useful lives of real estate | 15 years | |
Retail property | Woodland Park, CO | Maximum | ||
Gross Amount at which Carried at Close of Period | ||
Estimated useful lives of real estate | 35 years | |
Retail property | DeLeon Springs, FL | ||
Real Estate And Accumulated Depreciation | ||
Encumbrances | 828,000 | |
Initial Cost to Company | ||
Land | 239,000 | |
Building | 782,000 | |
Intangibles | 221,000 | |
Cost Capitalized Subsequent to Acquisition | 0 | |
Gross Amount at which Carried at Close of Period | ||
Land | 239,000 | |
Buildings | 782,000 | |
Intangibles | 221,000 | |
Total | 1,242,000 | |
Accumulated Depreciation | 118,000 | |
Reconciliation of Real Estate | ||
Balance at the end of the period | 1,242,000 | |
Reconciliation of Accumulated Depreciation and Amortization: | ||
Balance at the end of the period | 118,000 | |
Retail property | DeLeon Springs, FL | Minimum | ||
Gross Amount at which Carried at Close of Period | ||
Estimated useful lives of real estate | 15 years | |
Retail property | DeLeon Springs, FL | Maximum | ||
Gross Amount at which Carried at Close of Period | ||
Estimated useful lives of real estate | 35 years | |
Retail property | Orange City, FL | ||
Real Estate And Accumulated Depreciation | ||
Encumbrances | 797,000 | |
Initial Cost to Company | ||
Land | 229,000 | |
Building | 853,000 | |
Intangibles | 235,000 | |
Cost Capitalized Subsequent to Acquisition | 0 | |
Gross Amount at which Carried at Close of Period | ||
Land | 229,000 | |
Buildings | 853,000 | |
Intangibles | 235,000 | |
Total | 1,317,000 | |
Accumulated Depreciation | 130,000 | |
Reconciliation of Real Estate | ||
Balance at the end of the period | 1,317,000 | |
Reconciliation of Accumulated Depreciation and Amortization: | ||
Balance at the end of the period | 130,000 | |
Retail property | Orange City, FL | Minimum | ||
Gross Amount at which Carried at Close of Period | ||
Estimated useful lives of real estate | 15 years | |
Retail property | Orange City, FL | Maximum | ||
Gross Amount at which Carried at Close of Period | ||
Estimated useful lives of real estate | 35 years | |
Retail property | Satsuma, FL | ||
Real Estate And Accumulated Depreciation | ||
Encumbrances | 716,000 | |
Initial Cost to Company | ||
Land | 79,000 | |
Building | 821,000 | |
Intangibles | 192,000 | |
Cost Capitalized Subsequent to Acquisition | 0 | |
Gross Amount at which Carried at Close of Period | ||
Land | 79,000 | |
Buildings | 821,000 | |
Intangibles | 192,000 | |
Total | 1,092,000 | |
Accumulated Depreciation | 129,000 | |
Reconciliation of Real Estate | ||
Balance at the end of the period | 1,092,000 | |
Reconciliation of Accumulated Depreciation and Amortization: | ||
Balance at the end of the period | 129,000 | |
Retail property | Satsuma, FL | Minimum | ||
Gross Amount at which Carried at Close of Period | ||
Estimated useful lives of real estate | 15 years | |
Retail property | Satsuma, FL | Maximum | ||
Gross Amount at which Carried at Close of Period | ||
Estimated useful lives of real estate | 35 years | |
Retail property | Conyers, GA | ||
Real Estate And Accumulated Depreciation | ||
Encumbrances | 22,867,000 | |
Initial Cost to Company | ||
Land | 876,000 | |
Building | 27,396,000 | |
Intangibles | 4,258,000 | |
Cost Capitalized Subsequent to Acquisition | 0 | |
Gross Amount at which Carried at Close of Period | ||
Land | 876,000 | |
Buildings | 27,396,000 | |
Intangibles | 4,258,000 | |
Total | 32,530,000 | |
Accumulated Depreciation | 342,000 | |
Reconciliation of Real Estate | ||
Balance at the end of the period | 32,530,000 | |
Reconciliation of Accumulated Depreciation and Amortization: | ||
Balance at the end of the period | 342,000 | |
Retail property | Conyers, GA | Minimum | ||
Gross Amount at which Carried at Close of Period | ||
Estimated useful lives of real estate | 15 years | |
Retail property | Conyers, GA | Maximum | ||
Gross Amount at which Carried at Close of Period | ||
Estimated useful lives of real estate | 45 years | |
Retail property | Douglasville, GA | ||
Real Estate And Accumulated Depreciation | ||
Encumbrances | 3,264,000 | |
Initial Cost to Company | ||
Land | 1,717,000 | |
Building | 2,705,000 | |
Intangibles | 987,000 | |
Cost Capitalized Subsequent to Acquisition | 0 | |
Gross Amount at which Carried at Close of Period | ||
Land | 1,717,000 | |
Buildings | 2,705,000 | |
Intangibles | 987,000 | |
Total | 5,409,000 | |
Accumulated Depreciation | 505,000 | |
Reconciliation of Real Estate | ||
Balance at the end of the period | 5,409,000 | |
Reconciliation of Accumulated Depreciation and Amortization: | ||
Balance at the end of the period | 505,000 | |
Retail property | Douglasville, GA | Minimum | ||
Gross Amount at which Carried at Close of Period | ||
Estimated useful lives of real estate | 13 years | |
Retail property | Douglasville, GA | Maximum | ||
Gross Amount at which Carried at Close of Period | ||
Estimated useful lives of real estate | 48 years | |
Retail property | Lilburn, GA | ||
Real Estate And Accumulated Depreciation | ||
Encumbrances | 3,474,000 | |
Initial Cost to Company | ||
Land | 1,090,000 | |
Building | 3,673,000 | |
Intangibles | 1,028,000 | |
Cost Capitalized Subsequent to Acquisition | 0 | |
Gross Amount at which Carried at Close of Period | ||
Land | 1,090,000 | |
Buildings | 3,673,000 | |
Intangibles | 1,028,000 | |
Total | 5,791,000 | |
Accumulated Depreciation | 640,000 | |
Reconciliation of Real Estate | ||
Balance at the end of the period | 5,791,000 | |
Reconciliation of Accumulated Depreciation and Amortization: | ||
Balance at the end of the period | 640,000 | |
Retail property | Lilburn, GA | Minimum | ||
Gross Amount at which Carried at Close of Period | ||
Estimated useful lives of real estate | 12 years | |
Retail property | Lilburn, GA | Maximum | ||
Gross Amount at which Carried at Close of Period | ||
Estimated useful lives of real estate | 47 years | |
Retail property | Snellville, GA | ||
Real Estate And Accumulated Depreciation | ||
Encumbrances | 5,337,000 | |
Initial Cost to Company | ||
Land | 1,293,000 | |
Building | 5,724,000 | |
Intangibles | 983,000 | |
Cost Capitalized Subsequent to Acquisition | 0 | |
Gross Amount at which Carried at Close of Period | ||
Land | 1,293,000 | |
Buildings | 5,724,000 | |
Intangibles | 983,000 | |
Total | 8,000,000 | |
Accumulated Depreciation | 715,000 | |
Reconciliation of Real Estate | ||
Balance at the end of the period | 8,000,000 | |
Reconciliation of Accumulated Depreciation and Amortization: | ||
Balance at the end of the period | 715,000 | |
Retail property | Snellville, GA | Minimum | ||
Gross Amount at which Carried at Close of Period | ||
Estimated useful lives of real estate | 14 years | |
Retail property | Snellville, GA | Maximum | ||
Gross Amount at which Carried at Close of Period | ||
Estimated useful lives of real estate | 34 years | |
Retail property | Ankemy, IA | ||
Real Estate And Accumulated Depreciation | ||
Encumbrances | 11,790,000 | |
Initial Cost to Company | ||
Land | 3,180,000 | |
Building | 10,513,000 | |
Intangibles | 2,817,000 | |
Cost Capitalized Subsequent to Acquisition | 0 | |
Gross Amount at which Carried at Close of Period | ||
Land | 3,180,000 | |
Buildings | 10,513,000 | |
Intangibles | 2,843,000 | |
Total | 16,536,000 | |
Accumulated Depreciation | 75,000 | |
Reconciliation of Real Estate | ||
Balance at the end of the period | 16,536,000 | |
Reconciliation of Accumulated Depreciation and Amortization: | ||
Balance at the end of the period | 75,000 | |
Retail property | Ankemy, IA | Minimum | ||
Gross Amount at which Carried at Close of Period | ||
Estimated useful lives of real estate | 14 years | |
Retail property | Ankemy, IA | Maximum | ||
Gross Amount at which Carried at Close of Period | ||
Estimated useful lives of real estate | 39 years | |
Retail property | Cedar Rapid, IA | ||
Real Estate And Accumulated Depreciation | ||
Encumbrances | 7,855,000 | |
Initial Cost to Company | ||
Land | 1,569,000 | |
Building | 7,553,000 | |
Intangibles | 1,878,000 | |
Cost Capitalized Subsequent to Acquisition | 0 | |
Gross Amount at which Carried at Close of Period | ||
Land | 1,569,000 | |
Buildings | 7,553,000 | |
Intangibles | 1,878,000 | |
Total | 11,000,000 | |
Accumulated Depreciation | 63,000 | |
Reconciliation of Real Estate | ||
Balance at the end of the period | 11,000,000 | |
Reconciliation of Accumulated Depreciation and Amortization: | ||
Balance at the end of the period | 63,000 | |
Retail property | Cedar Rapid, IA | Minimum | ||
Gross Amount at which Carried at Close of Period | ||
Estimated useful lives of real estate | 10 years | |
Retail property | Cedar Rapid, IA | Maximum | ||
Gross Amount at which Carried at Close of Period | ||
Estimated useful lives of real estate | 30 years | |
Retail property | Fairfield, IA | ||
Real Estate And Accumulated Depreciation | ||
Encumbrances | 7,641,000 | |
Initial Cost to Company | ||
Land | 1,132,000 | |
Building | 7,779,000 | |
Intangibles | 1,784,000 | |
Cost Capitalized Subsequent to Acquisition | 0 | |
Gross Amount at which Carried at Close of Period | ||
Land | 1,132,000 | |
Buildings | 7,779,000 | |
Intangibles | 1,800,000 | |
Total | 10,711,000 | |
Accumulated Depreciation | 55,000 | |
Reconciliation of Real Estate | ||
Balance at the end of the period | 10,711,000 | |
Reconciliation of Accumulated Depreciation and Amortization: | ||
Balance at the end of the period | 55,000 | |
Retail property | Fairfield, IA | Minimum | ||
Gross Amount at which Carried at Close of Period | ||
Estimated useful lives of real estate | 12 years | |
Retail property | Fairfield, IA | Maximum | ||
Gross Amount at which Carried at Close of Period | ||
Estimated useful lives of real estate | 37 years | |
Retail property | Muscatine, IA | ||
Real Estate And Accumulated Depreciation | ||
Encumbrances | 3,754,000 | |
Initial Cost to Company | ||
Land | 1,060,000 | |
Building | 6,636,000 | |
Intangibles | -546,000 | |
Cost Capitalized Subsequent to Acquisition | 0 | |
Gross Amount at which Carried at Close of Period | ||
Land | 1,060,000 | |
Buildings | 6,636,000 | |
Intangibles | 1,293,000 | |
Total | 8,989,000 | |
Accumulated Depreciation | 37,000 | |
Reconciliation of Real Estate | ||
Balance at the end of the period | 8,989,000 | |
Reconciliation of Accumulated Depreciation and Amortization: | ||
Balance at the end of the period | 37,000 | |
Retail property | Muscatine, IA | Minimum | ||
Gross Amount at which Carried at Close of Period | ||
Estimated useful lives of real estate | 10 years | |
Retail property | Muscatine, IA | Maximum | ||
Gross Amount at which Carried at Close of Period | ||
Estimated useful lives of real estate | 29 years | |
Retail property | Sheldon, IA | ||
Real Estate And Accumulated Depreciation | ||
Encumbrances | 1,720,000 | |
Initial Cost to Company | ||
Land | 633,000 | |
Building | 3,053,000 | |
Intangibles | 614,000 | |
Cost Capitalized Subsequent to Acquisition | 0 | |
Gross Amount at which Carried at Close of Period | ||
Land | 633,000 | |
Buildings | 3,053,000 | |
Intangibles | 707,000 | |
Total | 4,393,000 | |
Accumulated Depreciation | 22,000 | |
Reconciliation of Real Estate | ||
Balance at the end of the period | 4,393,000 | |
Reconciliation of Accumulated Depreciation and Amortization: | ||
Balance at the end of the period | 22,000 | |
Retail property | Sheldon, IA | Minimum | ||
Gross Amount at which Carried at Close of Period | ||
Estimated useful lives of real estate | 12 years | |
Retail property | Sheldon, IA | Maximum | ||
Gross Amount at which Carried at Close of Period | ||
Estimated useful lives of real estate | 37 years | |
Retail property | O'Fallon, IL | ||
Real Estate And Accumulated Depreciation | ||
Encumbrances | 5,694,000 | |
Initial Cost to Company | ||
Land | 2,488,000 | |
Building | 5,388,000 | |
Intangibles | 125,000 | |
Cost Capitalized Subsequent to Acquisition | 0 | |
Gross Amount at which Carried at Close of Period | ||
Land | 2,488,000 | |
Buildings | 5,388,000 | |
Intangibles | 1,036,000 | |
Total | 8,912,000 | |
Accumulated Depreciation | 174,000 | |
Reconciliation of Real Estate | ||
Balance at the end of the period | 8,912,000 | |
Reconciliation of Accumulated Depreciation and Amortization: | ||
Balance at the end of the period | 174,000 | |
Retail property | O'Fallon, IL | Minimum | ||
Gross Amount at which Carried at Close of Period | ||
Estimated useful lives of real estate | 7 years | |
Retail property | O'Fallon, IL | Maximum | ||
Gross Amount at which Carried at Close of Period | ||
Estimated useful lives of real estate | 15 years | |
Retail property | Evansville, IN | ||
Real Estate And Accumulated Depreciation | ||
Encumbrances | 0 | |
Initial Cost to Company | ||
Land | 1,788,000 | |
Building | 6,348,000 | |
Intangibles | 864,000 | |
Cost Capitalized Subsequent to Acquisition | 0 | |
Gross Amount at which Carried at Close of Period | ||
Land | 1,788,000 | |
Buildings | 6,348,000 | |
Intangibles | 864,000 | |
Total | 9,000,000 | |
Accumulated Depreciation | 25,000 | |
Reconciliation of Real Estate | ||
Balance at the end of the period | 9,000,000 | |
Reconciliation of Accumulated Depreciation and Amortization: | ||
Balance at the end of the period | 25,000 | |
Retail property | Evansville, IN | Minimum | ||
Gross Amount at which Carried at Close of Period | ||
Estimated useful lives of real estate | 15 years | |
Retail property | Evansville, IN | Maximum | ||
Gross Amount at which Carried at Close of Period | ||
Estimated useful lives of real estate | 35 years | |
Retail property | Wichita, KS | ||
Real Estate And Accumulated Depreciation | ||
Encumbrances | 4,842,000 | |
Initial Cost to Company | ||
Land | 1,187,000 | |
Building | 4,850,000 | |
Intangibles | 1,163,000 | |
Cost Capitalized Subsequent to Acquisition | 0 | |
Gross Amount at which Carried at Close of Period | ||
Land | 1,187,000 | |
Buildings | 4,850,000 | |
Intangibles | 1,163,000 | |
Total | 7,200,000 | |
Accumulated Depreciation | 499,000 | |
Reconciliation of Real Estate | ||
Balance at the end of the period | 7,200,000 | |
Reconciliation of Accumulated Depreciation and Amortization: | ||
Balance at the end of the period | 499,000 | |
Retail property | Wichita, KS | Minimum | ||
Gross Amount at which Carried at Close of Period | ||
Estimated useful lives of real estate | 14 years | |
Retail property | Wichita, KS | Maximum | ||
Gross Amount at which Carried at Close of Period | ||
Estimated useful lives of real estate | 34 years | |
Retail property | North Dartsmouth, MA | ||
Real Estate And Accumulated Depreciation | ||
Encumbrances | 19,260,000 | |
Initial Cost to Company | ||
Land | 7,033,000 | |
Building | 19,745,000 | |
Intangibles | 3,187,000 | |
Cost Capitalized Subsequent to Acquisition | 0 | |
Gross Amount at which Carried at Close of Period | ||
Land | 7,033,000 | |
Buildings | 19,745,000 | |
Intangibles | 3,187,000 | |
Total | 29,965,000 | |
Accumulated Depreciation | 2,783,000 | |
Reconciliation of Real Estate | ||
Balance at the end of the period | 29,965,000 | |
Reconciliation of Accumulated Depreciation and Amortization: | ||
Balance at the end of the period | 2,783,000 | |
Retail property | North Dartsmouth, MA | Minimum | ||
Gross Amount at which Carried at Close of Period | ||
Estimated useful lives of real estate | 10 years | |
Retail property | North Dartsmouth, MA | Maximum | ||
Gross Amount at which Carried at Close of Period | ||
Estimated useful lives of real estate | 20 years | |
Retail property | Pittsfield, MA | ||
Real Estate And Accumulated Depreciation | ||
Encumbrances | 11,187,000 | |
Initial Cost to Company | ||
Land | 1,801,000 | |
Building | 11,556,000 | |
Intangibles | 1,344,000 | |
Cost Capitalized Subsequent to Acquisition | 0 | |
Gross Amount at which Carried at Close of Period | ||
Land | 1,801,000 | |
Buildings | 11,556,000 | |
Intangibles | 1,344,000 | |
Total | 14,701,000 | |
Accumulated Depreciation | 1,256,000 | |
Reconciliation of Real Estate | ||
Balance at the end of the period | 14,701,000 | |
Reconciliation of Accumulated Depreciation and Amortization: | ||
Balance at the end of the period | 1,256,000 | |
Retail property | Pittsfield, MA | Minimum | ||
Gross Amount at which Carried at Close of Period | ||
Estimated useful lives of real estate | 14 years | |
Retail property | Pittsfield, MA | Maximum | ||
Gross Amount at which Carried at Close of Period | ||
Estimated useful lives of real estate | 34 years | |
Retail property | Elkton, MD | ||
Real Estate And Accumulated Depreciation | ||
Encumbrances | 2,928,000 | |
Initial Cost to Company | ||
Land | 963,000 | |
Building | 3,049,000 | |
Intangibles | 860,000 | |
Cost Capitalized Subsequent to Acquisition | 0 | |
Gross Amount at which Carried at Close of Period | ||
Land | 963,000 | |
Buildings | 3,049,000 | |
Intangibles | 860,000 | |
Total | 4,872,000 | |
Accumulated Depreciation | 537,000 | |
Reconciliation of Real Estate | ||
Balance at the end of the period | 4,872,000 | |
Reconciliation of Accumulated Depreciation and Amortization: | ||
Balance at the end of the period | 537,000 | |
Retail property | Elkton, MD | Minimum | ||
Gross Amount at which Carried at Close of Period | ||
Estimated useful lives of real estate | 14 years | |
Retail property | Elkton, MD | Maximum | ||
Gross Amount at which Carried at Close of Period | ||
Estimated useful lives of real estate | 49 years | |
Retail property | Waldorf, MD | ||
Real Estate And Accumulated Depreciation | ||
Encumbrances | 12,209,000 | |
Initial Cost to Company | ||
Land | 4,933,000 | |
Building | 11,684,000 | |
Intangibles | 2,186,000 | |
Cost Capitalized Subsequent to Acquisition | 0 | |
Gross Amount at which Carried at Close of Period | ||
Land | 4,933,000 | |
Buildings | 11,684,000 | |
Intangibles | 2,803,000 | |
Total | 19,420,000 | |
Accumulated Depreciation | 1,469,000 | |
Reconciliation of Real Estate | ||
Balance at the end of the period | 19,420,000 | |
Reconciliation of Accumulated Depreciation and Amortization: | ||
Balance at the end of the period | 1,469,000 | |
Retail property | Waldorf, MD | Minimum | ||
Gross Amount at which Carried at Close of Period | ||
Estimated useful lives of real estate | 10 years | |
Retail property | Waldorf, MD | Maximum | ||
Gross Amount at which Carried at Close of Period | ||
Estimated useful lives of real estate | 25 years | |
Retail property | Owatonna, MN | ||
Real Estate And Accumulated Depreciation | ||
Encumbrances | 4,133,000 | |
Initial Cost to Company | ||
Land | 1,398,000 | |
Building | 7,125,000 | |
Intangibles | 1,446,000 | |
Cost Capitalized Subsequent to Acquisition | 0 | |
Gross Amount at which Carried at Close of Period | ||
Land | 1,398,000 | |
Buildings | 7,125,000 | |
Intangibles | 1,563,000 | |
Total | 10,086,000 | |
Accumulated Depreciation | 51,000 | |
Reconciliation of Real Estate | ||
Balance at the end of the period | 10,086,000 | |
Reconciliation of Accumulated Depreciation and Amortization: | ||
Balance at the end of the period | 51,000 | |
Retail property | Owatonna, MN | Minimum | ||
Gross Amount at which Carried at Close of Period | ||
Estimated useful lives of real estate | 11 years | |
Retail property | Owatonna, MN | Maximum | ||
Gross Amount at which Carried at Close of Period | ||
Estimated useful lives of real estate | 36 years | |
Retail property | Worthington, MN | ||
Real Estate And Accumulated Depreciation | ||
Encumbrances | 0 | |
Initial Cost to Company | ||
Land | 1,432,000 | |
Building | 5,510,000 | |
Intangibles | 1,378,000 | |
Cost Capitalized Subsequent to Acquisition | 0 | |
Gross Amount at which Carried at Close of Period | ||
Land | 1,432,000 | |
Buildings | 5,510,000 | |
Intangibles | 1,431,000 | |
Total | 8,373,000 | |
Accumulated Depreciation | 7,000 | |
Reconciliation of Real Estate | ||
Balance at the end of the period | 8,373,000 | |
Reconciliation of Accumulated Depreciation and Amortization: | ||
Balance at the end of the period | 7,000 | |
Retail property | Worthington, MN | Minimum | ||
Gross Amount at which Carried at Close of Period | ||
Estimated useful lives of real estate | 10 years | |
Retail property | Worthington, MN | Maximum | ||
Gross Amount at which Carried at Close of Period | ||
Estimated useful lives of real estate | 35 years | |
Retail property | Springfield, MO | ||
Real Estate And Accumulated Depreciation | ||
Encumbrances | 6,080,000 | |
Initial Cost to Company | ||
Land | 3,658,000 | |
Building | 6,296,000 | |
Intangibles | 1,721,000 | |
Cost Capitalized Subsequent to Acquisition | 0 | |
Gross Amount at which Carried at Close of Period | ||
Land | 3,658,000 | |
Buildings | 6,296,000 | |
Intangibles | 1,868,000 | |
Total | 11,822,000 | |
Accumulated Depreciation | 48,000 | |
Reconciliation of Real Estate | ||
Balance at the end of the period | 11,822,000 | |
Reconciliation of Accumulated Depreciation and Amortization: | ||
Balance at the end of the period | 48,000 | |
Retail property | Springfield, MO | Minimum | ||
Gross Amount at which Carried at Close of Period | ||
Estimated useful lives of real estate | 12 years | |
Retail property | Springfield, MO | Maximum | ||
Gross Amount at which Carried at Close of Period | ||
Estimated useful lives of real estate | 37 years | |
Retail property | Tupelo, MS | ||
Real Estate And Accumulated Depreciation | ||
Encumbrances | 3,090,000 | |
Initial Cost to Company | ||
Land | 1,120,000 | |
Building | 3,070,000 | |
Intangibles | 939,000 | |
Cost Capitalized Subsequent to Acquisition | 0 | |
Gross Amount at which Carried at Close of Period | ||
Land | 1,120,000 | |
Buildings | 3,070,000 | |
Intangibles | 939,000 | |
Total | 5,129,000 | |
Accumulated Depreciation | 554,000 | |
Reconciliation of Real Estate | ||
Balance at the end of the period | 5,129,000 | |
Reconciliation of Accumulated Depreciation and Amortization: | ||
Balance at the end of the period | 554,000 | |
Retail property | Tupelo, MS | Minimum | ||
Gross Amount at which Carried at Close of Period | ||
Estimated useful lives of real estate | 12 years | |
Retail property | Tupelo, MS | Maximum | ||
Gross Amount at which Carried at Close of Period | ||
Estimated useful lives of real estate | 47 years | |
Retail property | Mooresville, NC | ||
Real Estate And Accumulated Depreciation | ||
Encumbrances | 10,887,000 | |
Initial Cost to Company | ||
Land | 2,615,000 | |
Building | 12,462,000 | |
Intangibles | 2,566,000 | |
Cost Capitalized Subsequent to Acquisition | 0 | |
Gross Amount at which Carried at Close of Period | ||
Land | 2,615,000 | |
Buildings | 12,462,000 | |
Intangibles | 2,566,000 | |
Total | 17,643,000 | |
Accumulated Depreciation | 1,637,000 | |
Reconciliation of Real Estate | ||
Balance at the end of the period | 17,643,000 | |
Reconciliation of Accumulated Depreciation and Amortization: | ||
Balance at the end of the period | 1,637,000 | |
Retail property | Mooresville, NC | Minimum | ||
Gross Amount at which Carried at Close of Period | ||
Estimated useful lives of real estate | 12 years | |
Retail property | Mooresville, NC | Maximum | ||
Gross Amount at which Carried at Close of Period | ||
Estimated useful lives of real estate | 24 years | |
Retail property | Mt. Airy, NC | ||
Real Estate And Accumulated Depreciation | ||
Encumbrances | 2,925,000 | |
Initial Cost to Company | ||
Land | 729,000 | |
Building | 3,353,000 | |
Intangibles | 411,000 | |
Cost Capitalized Subsequent to Acquisition | 0 | |
Gross Amount at which Carried at Close of Period | ||
Land | 729,000 | |
Buildings | 3,353,000 | |
Intangibles | 599,000 | |
Total | 4,681,000 | |
Accumulated Depreciation | 244,000 | |
Reconciliation of Real Estate | ||
Balance at the end of the period | 4,681,000 | |
Reconciliation of Accumulated Depreciation and Amortization: | ||
Balance at the end of the period | 244,000 | |
Retail property | Mt. Airy, NC | Minimum | ||
Gross Amount at which Carried at Close of Period | ||
Estimated useful lives of real estate | 9 years | |
Retail property | Mt. Airy, NC | Maximum | ||
Gross Amount at which Carried at Close of Period | ||
Estimated useful lives of real estate | 39 years | |
Retail property | Plattsmouth, NE | ||
Real Estate And Accumulated Depreciation | ||
Encumbrances | 0 | |
Initial Cost to Company | ||
Land | 1,446,000 | |
Building | 5,220,000 | |
Intangibles | 1,313,000 | |
Cost Capitalized Subsequent to Acquisition | 0 | |
Gross Amount at which Carried at Close of Period | ||
Land | 1,446,000 | |
Buildings | 5,220,000 | |
Intangibles | 1,363,000 | |
Total | 8,029,000 | |
Accumulated Depreciation | 6,000 | |
Reconciliation of Real Estate | ||
Balance at the end of the period | 8,029,000 | |
Reconciliation of Accumulated Depreciation and Amortization: | ||
Balance at the end of the period | 6,000 | |
Retail property | Plattsmouth, NE | Minimum | ||
Gross Amount at which Carried at Close of Period | ||
Estimated useful lives of real estate | 12 years | |
Retail property | Plattsmouth, NE | Maximum | ||
Gross Amount at which Carried at Close of Period | ||
Estimated useful lives of real estate | 37 years | |
Retail property | Vineland, NJ | ||
Real Estate And Accumulated Depreciation | ||
Encumbrances | 13,984,000 | |
Initial Cost to Company | ||
Land | 1,482,000 | |
Building | 17,742,000 | |
Intangibles | 3,282,000 | |
Cost Capitalized Subsequent to Acquisition | 0 | |
Gross Amount at which Carried at Close of Period | ||
Land | 1,482,000 | |
Buildings | 17,742,000 | |
Intangibles | 3,282,000 | |
Total | 22,506,000 | |
Accumulated Depreciation | 1,946,000 | |
Reconciliation of Real Estate | ||
Balance at the end of the period | 22,506,000 | |
Reconciliation of Accumulated Depreciation and Amortization: | ||
Balance at the end of the period | 1,946,000 | |
Retail property | Vineland, NJ | Minimum | ||
Gross Amount at which Carried at Close of Period | ||
Estimated useful lives of real estate | 12 years | |
Retail property | Vineland, NJ | Maximum | ||
Gross Amount at which Carried at Close of Period | ||
Estimated useful lives of real estate | 30 years | |
Retail property | Bellport, NY | ||
Real Estate And Accumulated Depreciation | ||
Encumbrances | 12,925,000 | |
Initial Cost to Company | ||
Land | 3,601,000 | |
Building | 12,465,000 | |
Intangibles | 2,034,000 | |
Cost Capitalized Subsequent to Acquisition | 0 | |
Gross Amount at which Carried at Close of Period | ||
Land | 3,601,000 | |
Buildings | 12,465,000 | |
Intangibles | 2,034,000 | |
Total | 18,100,000 | |
Accumulated Depreciation | 72,000 | |
Reconciliation of Real Estate | ||
Balance at the end of the period | 18,100,000 | |
Reconciliation of Accumulated Depreciation and Amortization: | ||
Balance at the end of the period | 72,000 | |
Retail property | Bellport, NY | Minimum | ||
Gross Amount at which Carried at Close of Period | ||
Estimated useful lives of real estate | 15 years | |
Retail property | Bellport, NY | Maximum | ||
Gross Amount at which Carried at Close of Period | ||
Estimated useful lives of real estate | 35 years | |
Retail property | Saratoga Springs, NY | ||
Real Estate And Accumulated Depreciation | ||
Encumbrances | 12,502,000 | |
Initial Cost to Company | ||
Land | 748,000 | |
Building | 13,936,000 | |
Intangibles | 5,538,000 | |
Cost Capitalized Subsequent to Acquisition | 0 | |
Gross Amount at which Carried at Close of Period | ||
Land | 748,000 | |
Buildings | 13,936,000 | |
Intangibles | 5,538,000 | |
Total | 20,222,000 | |
Accumulated Depreciation | 1,841,000 | |
Reconciliation of Real Estate | ||
Balance at the end of the period | 20,222,000 | |
Reconciliation of Accumulated Depreciation and Amortization: | ||
Balance at the end of the period | 1,841,000 | |
Retail property | Saratoga Springs, NY | Minimum | ||
Gross Amount at which Carried at Close of Period | ||
Estimated useful lives of real estate | 15 years | |
Retail property | Saratoga Springs, NY | Maximum | ||
Gross Amount at which Carried at Close of Period | ||
Estimated useful lives of real estate | 27 years | |
Retail property | Sennett, NY | ||
Real Estate And Accumulated Depreciation | ||
Encumbrances | 4,784,000 | |
Initial Cost to Company | ||
Land | 1,147,000 | |
Building | 4,480,000 | |
Intangibles | 1,848,000 | |
Cost Capitalized Subsequent to Acquisition | 0 | |
Gross Amount at which Carried at Close of Period | ||
Land | 1,147,000 | |
Buildings | 4,480,000 | |
Intangibles | 1,848,000 | |
Total | 7,475,000 | |
Accumulated Depreciation | 724,000 | |
Reconciliation of Real Estate | ||
Balance at the end of the period | 7,475,000 | |
Reconciliation of Accumulated Depreciation and Amortization: | ||
Balance at the end of the period | 724,000 | |
Retail property | Sennett, NY | Minimum | ||
Gross Amount at which Carried at Close of Period | ||
Estimated useful lives of real estate | 10 years | |
Retail property | Sennett, NY | Maximum | ||
Gross Amount at which Carried at Close of Period | ||
Estimated useful lives of real estate | 23 years | |
Retail property | Durant, OK | ||
Real Estate And Accumulated Depreciation | ||
Encumbrances | 3,223,000 | |
Initial Cost to Company | ||
Land | 594,000 | |
Building | 3,900,000 | |
Intangibles | 498,000 | |
Cost Capitalized Subsequent to Acquisition | 0 | |
Gross Amount at which Carried at Close of Period | ||
Land | 594,000 | |
Buildings | 3,900,000 | |
Intangibles | 498,000 | |
Total | 4,992,000 | |
Accumulated Depreciation | 252,000 | |
Reconciliation of Real Estate | ||
Balance at the end of the period | 4,992,000 | |
Reconciliation of Accumulated Depreciation and Amortization: | ||
Balance at the end of the period | 252,000 | |
Retail property | Durant, OK | Minimum | ||
Gross Amount at which Carried at Close of Period | ||
Estimated useful lives of real estate | 10 years | |
Retail property | Durant, OK | Maximum | ||
Gross Amount at which Carried at Close of Period | ||
Estimated useful lives of real estate | 40 years | |
Retail property | Aiken, SC | ||
Real Estate And Accumulated Depreciation | ||
Encumbrances | 3,852,000 | |
Initial Cost to Company | ||
Land | 1,588,000 | |
Building | 3,480,000 | |
Intangibles | 858,000 | |
Cost Capitalized Subsequent to Acquisition | 0 | |
Gross Amount at which Carried at Close of Period | ||
Land | 1,588,000 | |
Buildings | 3,480,000 | |
Intangibles | 858,000 | |
Total | 5,926,000 | |
Accumulated Depreciation | 285,000 | |
Reconciliation of Real Estate | ||
Balance at the end of the period | 5,926,000 | |
Reconciliation of Accumulated Depreciation and Amortization: | ||
Balance at the end of the period | 285,000 | |
Retail property | Aiken, SC | Minimum | ||
Gross Amount at which Carried at Close of Period | ||
Estimated useful lives of real estate | 11 years | |
Retail property | Aiken, SC | Maximum | ||
Gross Amount at which Carried at Close of Period | ||
Estimated useful lives of real estate | 41 years | |
Retail property | Columbia, SC | ||
Real Estate And Accumulated Depreciation | ||
Encumbrances | 5,192,000 | |
Initial Cost to Company | ||
Land | 2,148,000 | |
Building | 4,629,000 | |
Intangibles | 1,023,000 | |
Cost Capitalized Subsequent to Acquisition | 0 | |
Gross Amount at which Carried at Close of Period | ||
Land | 2,148,000 | |
Buildings | 4,629,000 | |
Intangibles | 1,023,000 | |
Total | 7,800,000 | |
Accumulated Depreciation | 603,000 | |
Reconciliation of Real Estate | ||
Balance at the end of the period | 7,800,000 | |
Reconciliation of Accumulated Depreciation and Amortization: | ||
Balance at the end of the period | 603,000 | |
Retail property | Columbia, SC | Minimum | ||
Gross Amount at which Carried at Close of Period | ||
Estimated useful lives of real estate | 14 years | |
Retail property | Columbia, SC | Maximum | ||
Gross Amount at which Carried at Close of Period | ||
Estimated useful lives of real estate | 34 years | |
Retail property | Lexington, SC | ||
Real Estate And Accumulated Depreciation | ||
Encumbrances | 2,898,000 | |
Initial Cost to Company | ||
Land | 1,644,000 | |
Building | 2,219,000 | |
Intangibles | 869,000 | |
Cost Capitalized Subsequent to Acquisition | 0 | |
Gross Amount at which Carried at Close of Period | ||
Land | 1,644,000 | |
Buildings | 2,219,000 | |
Intangibles | 869,000 | |
Total | 4,732,000 | |
Accumulated Depreciation | 462,000 | |
Reconciliation of Real Estate | ||
Balance at the end of the period | 4,732,000 | |
Reconciliation of Accumulated Depreciation and Amortization: | ||
Balance at the end of the period | 462,000 | |
Retail property | Lexington, SC | Minimum | ||
Gross Amount at which Carried at Close of Period | ||
Estimated useful lives of real estate | 13 years | |
Retail property | Lexington, SC | Maximum | ||
Gross Amount at which Carried at Close of Period | ||
Estimated useful lives of real estate | 48 years | |
Retail property | Spartanburg, SC | ||
Real Estate And Accumulated Depreciation | ||
Encumbrances | 2,792,000 | |
Initial Cost to Company | ||
Land | 828,000 | |
Building | 2,567,000 | |
Intangibles | 476,000 | |
Cost Capitalized Subsequent to Acquisition | 0 | |
Gross Amount at which Carried at Close of Period | ||
Land | 828,000 | |
Buildings | 2,567,000 | |
Intangibles | 718,000 | |
Total | 4,113,000 | |
Accumulated Depreciation | 400,000 | |
Reconciliation of Real Estate | ||
Balance at the end of the period | 4,113,000 | |
Reconciliation of Accumulated Depreciation and Amortization: | ||
Balance at the end of the period | 400,000 | |
Retail property | Spartanburg, SC | Minimum | ||
Gross Amount at which Carried at Close of Period | ||
Estimated useful lives of real estate | 12 years | |
Retail property | Spartanburg, SC | Maximum | ||
Gross Amount at which Carried at Close of Period | ||
Estimated useful lives of real estate | 42 years | |
Retail property | Gallatin, TN | ||
Real Estate And Accumulated Depreciation | ||
Encumbrances | 3,294,000 | |
Initial Cost to Company | ||
Land | 1,725,000 | |
Building | 2,616,000 | |
Intangibles | 721,000 | |
Cost Capitalized Subsequent to Acquisition | 0 | |
Gross Amount at which Carried at Close of Period | ||
Land | 1,725,000 | |
Buildings | 2,616,000 | |
Intangibles | 721,000 | |
Total | 5,062,000 | |
Accumulated Depreciation | 233,000 | |
Reconciliation of Real Estate | ||
Balance at the end of the period | 5,062,000 | |
Reconciliation of Accumulated Depreciation and Amortization: | ||
Balance at the end of the period | 233,000 | |
Retail property | Gallatin, TN | Minimum | ||
Gross Amount at which Carried at Close of Period | ||
Estimated useful lives of real estate | 11 years | |
Retail property | Gallatin, TN | Maximum | ||
Gross Amount at which Carried at Close of Period | ||
Estimated useful lives of real estate | 40 years | |
Retail property | Johnson City, TN | ||
Real Estate And Accumulated Depreciation | ||
Encumbrances | 3,424,000 | |
Initial Cost to Company | ||
Land | 917,000 | |
Building | 3,607,000 | |
Intangibles | 739,000 | |
Cost Capitalized Subsequent to Acquisition | 0 | |
Gross Amount at which Carried at Close of Period | ||
Land | 917,000 | |
Buildings | 3,607,000 | |
Intangibles | 739,000 | |
Total | 5,263,000 | |
Accumulated Depreciation | 287,000 | |
Reconciliation of Real Estate | ||
Balance at the end of the period | 5,263,000 | |
Reconciliation of Accumulated Depreciation and Amortization: | ||
Balance at the end of the period | 287,000 | |
Retail property | Johnson City, TN | Minimum | ||
Gross Amount at which Carried at Close of Period | ||
Estimated useful lives of real estate | 11 years | |
Retail property | Johnson City, TN | Maximum | ||
Gross Amount at which Carried at Close of Period | ||
Estimated useful lives of real estate | 40 years | |
Retail property | Memphis, TN | ||
Real Estate And Accumulated Depreciation | ||
Encumbrances | 3,945,000 | |
Initial Cost to Company | ||
Land | 1,986,000 | |
Building | 2,800,000 | |
Intangibles | 524,000 | |
Cost Capitalized Subsequent to Acquisition | 0 | |
Gross Amount at which Carried at Close of Period | ||
Land | 1,986,000 | |
Buildings | 2,800,000 | |
Intangibles | 799,000 | |
Total | 5,585,000 | |
Accumulated Depreciation | 49,000 | |
Reconciliation of Real Estate | ||
Balance at the end of the period | 5,585,000 | |
Reconciliation of Accumulated Depreciation and Amortization: | ||
Balance at the end of the period | 49,000 | |
Retail property | Memphis, TN | Minimum | ||
Gross Amount at which Carried at Close of Period | ||
Estimated useful lives of real estate | 5 years | |
Retail property | Memphis, TN | Maximum | ||
Gross Amount at which Carried at Close of Period | ||
Estimated useful lives of real estate | 15 years | |
Retail property | Ooltewah, TN | ||
Real Estate And Accumulated Depreciation | ||
Encumbrances | 3,869,000 | |
Initial Cost to Company | ||
Land | 903,000 | |
Building | 3,957,000 | |
Intangibles | 843,000 | |
Cost Capitalized Subsequent to Acquisition | 0 | |
Gross Amount at which Carried at Close of Period | ||
Land | 903,000 | |
Buildings | 3,957,000 | |
Intangibles | 843,000 | |
Total | 5,703,000 | |
Accumulated Depreciation | 309,000 | |
Reconciliation of Real Estate | ||
Balance at the end of the period | 5,703,000 | |
Reconciliation of Accumulated Depreciation and Amortization: | ||
Balance at the end of the period | 309,000 | |
Retail property | Ooltewah, TN | Minimum | ||
Gross Amount at which Carried at Close of Period | ||
Estimated useful lives of real estate | 11 years | |
Retail property | Ooltewah, TN | Maximum | ||
Gross Amount at which Carried at Close of Period | ||
Estimated useful lives of real estate | 41 years | |
Retail property | Palmview, TX | ||
Real Estate And Accumulated Depreciation | ||
Encumbrances | 4,620,000 | |
Initial Cost to Company | ||
Land | 938,000 | |
Building | 4,837,000 | |
Intangibles | 1,044,000 | |
Cost Capitalized Subsequent to Acquisition | 0 | |
Gross Amount at which Carried at Close of Period | ||
Land | 938,000 | |
Buildings | 4,837,000 | |
Intangibles | 1,044,000 | |
Total | 6,819,000 | |
Accumulated Depreciation | 330,000 | |
Reconciliation of Real Estate | ||
Balance at the end of the period | 6,819,000 | |
Reconciliation of Accumulated Depreciation and Amortization: | ||
Balance at the end of the period | 330,000 | |
Retail property | Palmview, TX | Minimum | ||
Gross Amount at which Carried at Close of Period | ||
Estimated useful lives of real estate | 11 years | |
Retail property | Palmview, TX | Maximum | ||
Gross Amount at which Carried at Close of Period | ||
Estimated useful lives of real estate | 44 years | |
Retail property | Abingdon, VA | ||
Real Estate And Accumulated Depreciation | ||
Encumbrances | 3,107,000 | |
Initial Cost to Company | ||
Land | 682,000 | |
Building | 3,733,000 | |
Intangibles | 273,000 | |
Cost Capitalized Subsequent to Acquisition | 0 | |
Gross Amount at which Carried at Close of Period | ||
Land | 682,000 | |
Buildings | 3,733,000 | |
Intangibles | 623,000 | |
Total | 5,038,000 | |
Accumulated Depreciation | 251,000 | |
Reconciliation of Real Estate | ||
Balance at the end of the period | 5,038,000 | |
Reconciliation of Accumulated Depreciation and Amortization: | ||
Balance at the end of the period | 251,000 | |
Retail property | Abingdon, VA | Minimum | ||
Gross Amount at which Carried at Close of Period | ||
Estimated useful lives of real estate | 11 years | |
Retail property | Abingdon, VA | Maximum | ||
Gross Amount at which Carried at Close of Period | ||
Estimated useful lives of real estate | 41 years | |
Office building | ||
Real Estate And Accumulated Depreciation | ||
Encumbrances | 208,989,000 | |
Initial Cost to Company | ||
Land | 39,180,000 | |
Building | 169,220,000 | |
Intangibles | 61,474,000 | |
Cost Capitalized Subsequent to Acquisition | 5,184,000 | |
Gross Amount at which Carried at Close of Period | ||
Land | 39,180,000 | |
Buildings | 174,518,000 | |
Intangibles | 64,218,000 | |
Total | 277,916,000 | |
Accumulated Depreciation | 24,720,000 | |
Reconciliation of Real Estate | ||
Balance at the end of the period | 277,916,000 | |
Reconciliation of Accumulated Depreciation and Amortization: | ||
Balance at the end of the period | 24,720,000 | |
Office building | Oakland County, MI | ||
Real Estate And Accumulated Depreciation | ||
Encumbrances | 12,334,000 | |
Initial Cost to Company | ||
Land | 1,147,000 | |
Building | 7,707,000 | |
Intangibles | 9,146,000 | |
Cost Capitalized Subsequent to Acquisition | 1,218,000 | |
Gross Amount at which Carried at Close of Period | ||
Land | 1,147,000 | |
Buildings | 9,010,000 | |
Intangibles | 9,556,000 | |
Total | 19,713,000 | |
Accumulated Depreciation | 5,348,000 | |
Reconciliation of Real Estate | ||
Balance at the end of the period | 19,713,000 | |
Reconciliation of Accumulated Depreciation and Amortization: | ||
Balance at the end of the period | 5,348,000 | |
Office building | Oakland County, MI | Minimum | ||
Gross Amount at which Carried at Close of Period | ||
Estimated useful lives of real estate | 4 years | |
Office building | Oakland County, MI | Maximum | ||
Gross Amount at which Carried at Close of Period | ||
Estimated useful lives of real estate | 35 years | |
Office building | Minneapolis, MN | ||
Real Estate And Accumulated Depreciation | ||
Encumbrances | 40,965,000 | |
Initial Cost to Company | ||
Land | 9,447,000 | |
Building | 27,569,000 | |
Intangibles | 14,262,000 | |
Cost Capitalized Subsequent to Acquisition | 2,446,000 | |
Gross Amount at which Carried at Close of Period | ||
Land | 9,447,000 | |
Buildings | 30,014,000 | |
Intangibles | 14,516,000 | |
Total | 53,977,000 | |
Accumulated Depreciation | 3,876,000 | |
Reconciliation of Real Estate | ||
Balance at the end of the period | 53,977,000 | |
Reconciliation of Accumulated Depreciation and Amortization: | ||
Balance at the end of the period | 3,876,000 | |
Office building | Minneapolis, MN | Minimum | ||
Gross Amount at which Carried at Close of Period | ||
Estimated useful lives of real estate | 7 years | |
Office building | Minneapolis, MN | Maximum | ||
Gross Amount at which Carried at Close of Period | ||
Estimated useful lives of real estate | 30 years | |
Office building | St. Paul, MN | ||
Real Estate And Accumulated Depreciation | ||
Encumbrances | 49,979,000 | |
Initial Cost to Company | ||
Land | 9,415,000 | |
Building | 33,682,000 | |
Intangibles | 19,243,000 | |
Cost Capitalized Subsequent to Acquisition | 375,000 | |
Gross Amount at which Carried at Close of Period | ||
Land | 9,415,000 | |
Buildings | 34,057,000 | |
Intangibles | 20,519,000 | |
Total | 63,991,000 | |
Accumulated Depreciation | 1,578,000 | |
Reconciliation of Real Estate | ||
Balance at the end of the period | 63,991,000 | |
Reconciliation of Accumulated Depreciation and Amortization: | ||
Balance at the end of the period | 1,578,000 | |
Office building | St. Paul, MN | Minimum | ||
Gross Amount at which Carried at Close of Period | ||
Estimated useful lives of real estate | 7 years | |
Office building | St. Paul, MN | Maximum | ||
Gross Amount at which Carried at Close of Period | ||
Estimated useful lives of real estate | 19 years | |
Office building | Henrico, VA | ||
Real Estate And Accumulated Depreciation | ||
Encumbrances | 89,895,000 | |
Initial Cost to Company | ||
Land | 14,632,000 | |
Building | 87,629,000 | |
Intangibles | 16,145,000 | |
Cost Capitalized Subsequent to Acquisition | 1,086,000 | |
Gross Amount at which Carried at Close of Period | ||
Land | 14,632,000 | |
Buildings | 88,745,000 | |
Intangibles | 16,923,000 | |
Total | 120,300,000 | |
Accumulated Depreciation | 13,354,000 | |
Reconciliation of Real Estate | ||
Balance at the end of the period | 120,300,000 | |
Reconciliation of Accumulated Depreciation and Amortization: | ||
Balance at the end of the period | 13,354,000 | |
Office building | Henrico, VA | Minimum | ||
Gross Amount at which Carried at Close of Period | ||
Estimated useful lives of real estate | 4 years | |
Office building | Henrico, VA | Maximum | ||
Gross Amount at which Carried at Close of Period | ||
Estimated useful lives of real estate | 41 years | |
Office building | Henrico, VA | ||
Real Estate And Accumulated Depreciation | ||
Encumbrances | 15,816,000 | |
Initial Cost to Company | ||
Land | 4,539,000 | |
Building | 12,633,000 | |
Intangibles | 2,678,000 | |
Cost Capitalized Subsequent to Acquisition | 59,000 | |
Gross Amount at which Carried at Close of Period | ||
Land | 4,539,000 | |
Buildings | 12,692,000 | |
Intangibles | 2,704,000 | |
Total | 19,935,000 | |
Accumulated Depreciation | 564,000 | |
Reconciliation of Real Estate | ||
Balance at the end of the period | 19,935,000 | |
Reconciliation of Accumulated Depreciation and Amortization: | ||
Balance at the end of the period | 564,000 | |
Office building | Henrico, VA | Minimum | ||
Gross Amount at which Carried at Close of Period | ||
Estimated useful lives of real estate | 4 years | |
Office building | Henrico, VA | Maximum | ||
Gross Amount at which Carried at Close of Period | ||
Estimated useful lives of real estate | 33 years | |
Condominium | ||
Real Estate And Accumulated Depreciation | ||
Encumbrances | 5,821,000 | |
Initial Cost to Company | ||
Land | 15,387,000 | |
Building | 181,995,000 | |
Intangibles | 1,618,000 | |
Cost Capitalized Subsequent to Acquisition | 0 | |
Gross Amount at which Carried at Close of Period | ||
Land | 12,944,000 | |
Buildings | 107,440,000 | |
Intangibles | 1,241,000 | |
Total | 121,625,000 | |
Accumulated Depreciation | 4,750,000 | |
Reconciliation of Real Estate | ||
Balance at the end of the period | 121,625,000 | |
Reconciliation of Accumulated Depreciation and Amortization: | ||
Balance at the end of the period | 4,750,000 | |
Condominium | Miami, FL | ||
Real Estate And Accumulated Depreciation | ||
Encumbrances | 5,821,000 | |
Initial Cost to Company | ||
Land | 10,487,000 | |
Building | 67,895,000 | |
Intangibles | 1,618,000 | |
Cost Capitalized Subsequent to Acquisition | 0 | |
Gross Amount at which Carried at Close of Period | ||
Land | 8,044,000 | |
Buildings | 52,081,000 | |
Intangibles | 1,241,000 | |
Total | 61,366,000 | |
Accumulated Depreciation | 1,714,000 | |
Reconciliation of Real Estate | ||
Balance at the end of the period | 61,366,000 | |
Reconciliation of Accumulated Depreciation and Amortization: | ||
Balance at the end of the period | 1,714,000 | |
Condominium | Miami, FL | Minimum | ||
Gross Amount at which Carried at Close of Period | ||
Estimated useful lives of real estate | 7 years | |
Condominium | Miami, FL | Maximum | ||
Gross Amount at which Carried at Close of Period | ||
Estimated useful lives of real estate | 47 years | |
Condominium | Las Vegas, NV | ||
Real Estate And Accumulated Depreciation | ||
Encumbrances | 0 | |
Initial Cost to Company | ||
Land | 4,900,000 | |
Building | 114,100,000 | |
Intangibles | 0 | |
Cost Capitalized Subsequent to Acquisition | 0 | |
Gross Amount at which Carried at Close of Period | ||
Land | 4,900,000 | |
Buildings | 55,359,000 | |
Intangibles | 0 | |
Total | 60,259,000 | |
Accumulated Depreciation | 3,036,000 | |
Reconciliation of Real Estate | ||
Balance at the end of the period | 60,259,000 | |
Reconciliation of Accumulated Depreciation and Amortization: | ||
Balance at the end of the period | 3,036,000 | |
Condominium | Las Vegas, NV | Minimum | ||
Gross Amount at which Carried at Close of Period | ||
Estimated useful lives of real estate | 40 years | |
Commercial Real Estate | ||
Gross Amount at which Carried at Close of Period | ||
Total | 697,965,000 | 474,465,000 |
Accumulated Depreciation | 45,856,000 | 23,061,000 |
Reconciliation of Real Estate | ||
Balance at the beginning of the period | 474,465,000 | 265,082,000 |
Improvements and additions | 267,367,000 | 209,383,000 |
Acquisitions through foreclosure | 0 | 0 |
Dispositions | -43,867,000 | 0 |
Impairments | 0 | 0 |
Balance at the end of the period | 697,965,000 | 474,465,000 |
Reconciliation of Accumulated Depreciation and Amortization: | ||
Balance at the beginning of the period | 23,061,000 | 4,061,000 |
Additions | 25,212,000 | 19,000,000 |
Dispositions | -2,417,000 | 0 |
Balance at the end of the period | 45,856,000 | 23,061,000 |
Residential Real Estate | ||
Gross Amount at which Carried at Close of Period | ||
Total | 121,626,000 | 175,355,000 |
Accumulated Depreciation | 4,749,000 | 2,540,000 |
Reconciliation of Real Estate | ||
Balance at the beginning of the period | 175,355,000 | 119,000,000 |
Improvements and additions | 0 | 80,000,000 |
Acquisitions through foreclosure | 0 | 0 |
Dispositions | -53,729,000 | -23,645,000 |
Impairments | 0 | 0 |
Balance at the end of the period | 121,626,000 | 175,355,000 |
Reconciliation of Accumulated Depreciation and Amortization: | ||
Balance at the beginning of the period | 2,540,000 | 0 |
Additions | 3,704,000 | 2,821,000 |
Dispositions | -1,495,000 | -281,000 |
Balance at the end of the period | 4,749,000 | 2,540,000 |
Master repurchase agreements | ||
Real Estate And Accumulated Depreciation | ||
Encumbrances | $21,506,698 |
Schedule_IV_Mortgage_Loans_on_1
Schedule IV - Mortgage Loans on Real Estate (Details) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Mortgage Loans on Real Estate [Line Items] | |
Prior Liens | $1,193,237,000 |
Face amount of Mortgages | 1,954,878,000 |
Carrying Amount of Mortgages | 1,942,108,000 |
Provision for Loan and Lease Losses | -3,100,000 |
Total Mortgages after Provision for Loan Losses | 1,939,008,000 |
Principal Amount of Mortgages Subject to Delinquent Principal or Interest | 8,073,000 |
Aggregate cost for Federal income tax purposes | 1,962,379,356 |
First mortgage loan | |
Mortgage Loans on Real Estate [Line Items] | |
Prior Liens | 0 |
Face amount of Mortgages | 1,791,431,000 |
Carrying Amount of Mortgages | 1,779,709,000 |
Principal Amount of Mortgages Subject to Delinquent Principal or Interest | 8,073,000 |
Subordinated Mortgages | |
Mortgage Loans on Real Estate [Line Items] | |
Prior Liens | 1,193,237,000 |
Face amount of Mortgages | 163,447,000 |
Carrying Amount of Mortgages | 162,399,000 |
Principal Amount of Mortgages Subject to Delinquent Principal or Interest | 0 |
Hotel | First Mortgage at interest rate of 9.38% | |
Mortgage Loans on Real Estate [Line Items] | |
Mortgage Loans on Real Estate, Interest Rate | 9.38% |
Prior Liens | 0 |
Face amount of Mortgages | 96,722,000 |
Carrying Amount of Mortgages | 96,524,000 |
Principal Amount of Mortgages Subject to Delinquent Principal or Interest | 0 |
Hotel | First Mortgage 5.25 Percent | |
Mortgage Loans on Real Estate [Line Items] | |
Mortgage Loans on Real Estate, Interest Rate | 5.25% |
Prior Liens | 0 |
Face amount of Mortgages | 71,265,000 |
Carrying Amount of Mortgages | 70,735,000 |
Principal Amount of Mortgages Subject to Delinquent Principal or Interest | 0 |
Hotel | First Mortgage 5.50 Percent | |
Mortgage Loans on Real Estate [Line Items] | |
Mortgage Loans on Real Estate, Interest Rate | 5.50% |
Prior Liens | 0 |
Face amount of Mortgages | 73,341,000 |
Carrying Amount of Mortgages | 72,847,000 |
Principal Amount of Mortgages Subject to Delinquent Principal or Interest | 0 |
Office | First Mortgage 5.16 Percent | |
Mortgage Loans on Real Estate [Line Items] | |
Mortgage Loans on Real Estate, Interest Rate | 5.16% |
Prior Liens | 0 |
Face amount of Mortgages | 135,991,000 |
Carrying Amount of Mortgages | 135,260,000 |
Principal Amount of Mortgages Subject to Delinquent Principal or Interest | 0 |
Office | First Mortgage 4.35 Percent | |
Mortgage Loans on Real Estate [Line Items] | |
Mortgage Loans on Real Estate, Interest Rate | 4.35% |
Prior Liens | 0 |
Face amount of Mortgages | 64,000,000 |
Carrying Amount of Mortgages | 63,730,000 |
Principal Amount of Mortgages Subject to Delinquent Principal or Interest | 0 |
Multi-family | First Mortgage 5.75 Percent | |
Mortgage Loans on Real Estate [Line Items] | |
Mortgage Loans on Real Estate, Interest Rate | 5.75% |
Prior Liens | 0 |
Face amount of Mortgages | 122,732,000 |
Carrying Amount of Mortgages | 121,761,000 |
Principal Amount of Mortgages Subject to Delinquent Principal or Interest | 0 |
Mobile Home Park | First Mortgage 5.00 Percent | |
Mortgage Loans on Real Estate [Line Items] | |
Mortgage Loans on Real Estate, Interest Rate | 5.00% |
Prior Liens | 0 |
Face amount of Mortgages | 97,500,000 |
Carrying Amount of Mortgages | 96,504,000 |
Principal Amount of Mortgages Subject to Delinquent Principal or Interest | 0 |
Retail | First Mortgage 4.45 Percent | |
Mortgage Loans on Real Estate [Line Items] | |
Mortgage Loans on Real Estate, Interest Rate | 4.45% |
Prior Liens | 0 |
Face amount of Mortgages | 80,000,000 |
Carrying Amount of Mortgages | 80,000,000 |
Principal Amount of Mortgages Subject to Delinquent Principal or Interest | 0 |
Healthcare | First Mortgage 3.37 Percent | |
Mortgage Loans on Real Estate [Line Items] | |
Mortgage Loans on Real Estate, Interest Rate | 3.37% |
Prior Liens | 0 |
Face amount of Mortgages | 98,290,000 |
Carrying Amount of Mortgages | 98,290,000 |
Principal Amount of Mortgages Subject to Delinquent Principal or Interest | 0 |
Condo, Hotel, Multifamily, Office, Other, Commercial, Retail | First Mortgages individually less than 3% | |
Mortgage Loans on Real Estate [Line Items] | |
Prior Liens | 0 |
Face amount of Mortgages | 951,590,000 |
Carrying Amount of Mortgages | 944,058,000 |
Principal Amount of Mortgages Subject to Delinquent Principal or Interest | 8,073,000 |
Condo, Hotel, Multifamily, Office, Other, Commercial, Retail | First Mortgages individually less than 3% | Minimum | |
Mortgage Loans on Real Estate [Line Items] | |
Mortgage Loans on Real Estate, Interest Rate | 3.91% |
Condo, Hotel, Multifamily, Office, Other, Commercial, Retail | First Mortgages individually less than 3% | Maximum | |
Mortgage Loans on Real Estate [Line Items] | |
Mortgage Loans on Real Estate, Interest Rate | 12.00% |
Hotel, Multi-family, Office, Retail | Subordinate Mortgages individually less than 3% | |
Mortgage Loans on Real Estate [Line Items] | |
Prior Liens | 1,193,237,000 |
Face amount of Mortgages | 163,447,000 |
Carrying Amount of Mortgages | 162,399,000 |
Principal Amount of Mortgages Subject to Delinquent Principal or Interest | $0 |
Hotel, Multi-family, Office, Retail | Subordinate Mortgages individually less than 3% | Minimum | |
Mortgage Loans on Real Estate [Line Items] | |
Mortgage Loans on Real Estate, Interest Rate | 6.04% |
Hotel, Multi-family, Office, Retail | Subordinate Mortgages individually less than 3% | Maximum | |
Mortgage Loans on Real Estate [Line Items] | |
Mortgage Loans on Real Estate, Interest Rate | 19.00% |
Schedule_IV_Mortgage_Loans_on_2
Schedule IV - Mortgage Loans on Real Estate - Reconcile Mortgage Loans on Real Estate (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Reconciliation of Mortgage loans on Real Estate: | |||
Balance at the beginning of the period | $979,568,000 | $949,652,000 | $514,038,000 |
Origination of mortgage loan receivables | 4,547,340,000 | 2,499,746,000 | 2,378,086,000 |
Repayment of mortgage loan receivables | -215,804,000 | -273,933,000 | -280,568,000 |
Proceeds from sales of mortgage loan receivables | -3,523,688,000 | -2,345,705,000 | -1,815,996,000 |
Sale of loans, net | 145,274,603 | 146,708,264 | 151,661,150 |
Transfer between held for investment and held for sale | 0 | 0 | 0 |
Accretion/amortization of discount, premium and other fees | 6,918,000 | 3,700,000 | 2,879,000 |
Provision for loan losses | -600,000 | -600,000 | -448,833 |
Balance at the end of the period | 1,939,008,000 | 979,568,000 | 949,652,000 |
Mortgage loan receivables held for investment, at amortized cost | |||
Reconciliation of Mortgage loans on Real Estate: | |||
Balance at the beginning of the period | 539,078,182 | 326,318,550 | 255,196,384 |
Origination of mortgage loan receivables | 1,201,968,254 | 486,072,238 | 341,947,392 |
Repayment of mortgage loan receivables | -214,510,727 | -268,093,305 | -204,913,202 |
Proceeds from sales of mortgage loan receivables | 0 | 0 | 0 |
Sale of loans, net | 0 | 0 | 0 |
Transfer between held for investment and held for sale | -11,800,000 | -8,320,273 | -68,080,932 |
Accretion/amortization of discount, premium and other fees | 6,917,666 | 3,700,972 | 2,617,741 |
Provision for loan losses | -600,000 | -600,000 | -448,833 |
Balance at the end of the period | 1,521,053,375 | 539,078,182 | 326,318,550 |
Mortgage loan receivables held for sale | |||
Reconciliation of Mortgage loans on Real Estate: | |||
Balance at the beginning of the period | 440,489,789 | 623,332,620 | 258,841,725 |
Origination of mortgage loan receivables | 3,345,371,937 | 2,013,674,038 | 2,036,138,933 |
Repayment of mortgage loan receivables | -1,293,262 | -5,840,419 | -75,654,634 |
Proceeds from sales of mortgage loan receivables | -3,523,688,310 | -2,345,704,987 | -1,815,995,772 |
Sale of loans, net | 145,274,603 | 146,708,264 | 151,661,150 |
Transfer between held for investment and held for sale | 11,800,000 | 8,320,273 | 68,080,932 |
Accretion/amortization of discount, premium and other fees | 0 | 0 | 260,286 |
Provision for loan losses | 0 | 0 | 0 |
Balance at the end of the period | $417,954,757 | $440,489,789 | $623,332,620 |