Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2019 | Oct. 31, 2019 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2019 | |
Document Transition Report | false | |
Entity File Number | 001-36299 | |
Entity Registrant Name | Ladder Capital Corp | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 80-0925494 | |
Entity Address, Address Line One | 345 Park Avenue, | |
Entity Address, City or Town | New York, | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10154 | |
City Area Code | 212 | |
Local Phone Number | 715-3170 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Smaller Reporting Company | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Title of 12(b) Security | Class A common stock, $0.001 par value | |
Trading Symbol | LADR | |
Security Exchange Name | NYSE | |
Entity Central Index Key | 0001577670 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Class A Common Stock | ||
Entity Common Stock, Shares Outstanding | 107,573,820 | |
Class B Common Stock | ||
Entity Common Stock, Shares Outstanding | 12,158,933 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | |
Assets | |||
Cash and cash equivalents | [1] | $ 83,097 | $ 67,878 |
Restricted cash | [1] | 38,656 | 30,572 |
Mortgage loan receivables held for investment, net, at amortized cost: | |||
Mortgage loans held by consolidated subsidiaries | [1] | 3,231,443 | 3,318,390 |
Provision for loan losses | [1] | (18,500) | (17,900) |
Mortgage loan receivables held for sale | [1] | 174,214 | 182,439 |
Real estate securities | [1] | 1,911,456 | 1,410,126 |
Real estate and related lease intangibles, net | [1] | 981,333 | 998,022 |
Investments in and advances to unconsolidated joint ventures | [1] | 51,419 | 40,354 |
FHLB stock | [1] | 61,619 | 57,915 |
Derivative instruments | [1] | 22 | 0 |
Due from brokers | [1] | 3,962 | 0 |
Accrued interest receivable | [1] | 22,699 | 27,214 |
Other assets | [1] | 78,454 | 157,862 |
Total assets | [1] | 6,619,874 | 6,272,872 |
Liabilities | |||
Debt obligations, net | [1] | 4,860,687 | 4,452,574 |
Due to brokers | [1] | 7,000 | 1,301 |
Derivative instruments | [1] | 82 | 975 |
Amount payable pursuant to tax receivable agreement | [1] | 1,559 | 1,570 |
Dividends payable | [1] | 2,384 | 37,316 |
Accrued expenses | [1] | 45,761 | 82,425 |
Other liabilities | [1] | 63,151 | 53,076 |
Total liabilities | [1] | 4,980,624 | 4,629,237 |
Commitments and contingencies (Note 18) | [1] | 0 | 0 |
Equity | |||
Additional paid-in capital | [1] | 1,529,599 | 1,471,157 |
Treasury stock, 3,120,012 and 2,701,162 shares, at cost | [1] | (41,556) | (32,815) |
Retained earnings (dividends in excess of earnings) | [1] | (39,860) | 11,342 |
Accumulated other comprehensive income (loss) | [1] | 10,367 | (4,649) |
Total shareholders’ equity | [1] | 1,458,670 | 1,445,153 |
Noncontrolling interest in operating partnership | [1] | 171,731 | 188,427 |
Noncontrolling interest in consolidated joint ventures | [1] | 8,849 | 10,055 |
Total equity | [1] | 1,639,250 | 1,643,635 |
Total liabilities and equity | [1] | 6,619,874 | 6,272,872 |
Class A Common Stock | |||
Equity | |||
Common stock | [1] | 108 | 105 |
Class B Common Stock | |||
Equity | |||
Common stock | [1] | $ 12 | $ 13 |
[1] | Includes amounts relating to consolidated variable interest entities. See Note 10 . |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2019 | Dec. 31, 2018 |
Treasury stock (in shares) | 3,120,012 | 2,701,162 |
Class A Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, authorized (in shares) | 600,000,000 | 600,000,000 |
Common stock, issued (in shares) | 110,693,832 | 106,642,335 |
Common stock, outstanding (in shares) | 107,573,820 | 103,941,173 |
Class B Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, issued (in shares) | 12,158,933 | 13,117,419 |
Common stock, outstanding (in shares) | 12,158,933 | 13,117,419 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Net interest income | ||||
Interest income | $ 82,251 | $ 90,386 | $ 254,040 | $ 253,822 |
Interest expense | 51,397 | 51,476 | 155,015 | 144,606 |
Net interest income | 30,854 | 38,910 | 99,025 | 109,216 |
Provision for loan losses | 0 | 10,300 | 600 | 13,600 |
Net interest income after provision for loan losses | 30,854 | 28,610 | 98,425 | 95,616 |
Other income (loss) | ||||
Operating lease income | 24,405 | 81,106 | ||
Operating lease income | 24,997 | 79,306 | ||
Sale of loans, net | 11,247 | 1,861 | 38,589 | 12,893 |
Realized gain (loss) on securities | 3,396 | (2,554) | 10,726 | (4,896) |
Unrealized gain (loss) on equity securities | 254 | 0 | 1,341 | 0 |
Unrealized gain (loss) on Agency interest-only securities | 16 | 142 | 38 | 456 |
Realized gain (loss) on sale of real estate, net | 2,082 | 63,704 | 963 | 96,341 |
Impairment of real estate | 0 | 0 | (1,350) | 0 |
Fee and other income | 5,166 | 4,851 | 17,047 | 17,579 |
Net result from derivative transactions | (9,465) | 7,115 | (35,956) | 29,156 |
Earnings (loss) from investment in unconsolidated joint ventures | 1,094 | 401 | 3,617 | 466 |
Gain (loss) on extinguishment/defeasance of debt | 0 | (4,323) | (1,070) | (4,392) |
Total other income (loss) | 38,195 | 96,194 | 115,051 | 226,909 |
Costs and expenses | ||||
Salaries and employee benefits | 14,319 | 15,792 | 52,800 | 46,754 |
Operating expenses | 5,314 | 5,464 | 16,727 | 16,608 |
Real estate operating expenses | 6,270 | 7,152 | 17,776 | 23,806 |
Fee expense | 2,056 | 1,311 | 4,951 | 2,953 |
Depreciation and amortization | 9,030 | 10,417 | 29,192 | 31,896 |
Total costs and expenses | 36,989 | 40,136 | 121,446 | 122,017 |
Income (loss) before taxes | 32,060 | 84,668 | 92,030 | 200,508 |
Income tax expense (benefit) | 1,112 | 1,204 | 478 | 5,679 |
Net income (loss) | 30,948 | 83,464 | 91,552 | 194,829 |
Net (income) loss attributable to noncontrolling interest in consolidated joint ventures | (64) | (7,843) | 691 | (16,132) |
Net (income) loss attributable to noncontrolling interest in operating partnership | $ (3,308) | $ (8,991) | $ (10,247) | $ (22,786) |
Earnings per share: | ||||
Basic (in dollars per share) | $ 0.26 | $ 0.69 | $ 0.78 | $ 1.62 |
Diluted (in dollars per share) | $ 0.26 | $ 0.67 | $ 0.77 | $ 1.61 |
Weighted average shares outstanding: | ||||
Basic (in shares) | 106,004,152 | 96,935,986 | 105,264,752 | 96,317,513 |
Diluted (in shares) | 106,603,713 | 110,650,253 | 106,232,581 | 110,482,991 |
Class A Common Stock | ||||
Costs and expenses | ||||
Net income (loss) attributable to Class A common shareholders | $ 27,576 | $ 66,630 | $ 81,996 | $ 155,911 |
Earnings per share: | ||||
Basic (in dollars per share) | $ 0.26 | $ 0.69 | $ 0.78 | $ 1.62 |
Diluted (in dollars per share) | $ 0.26 | $ 0.67 | $ 0.77 | $ 1.61 |
Weighted average shares outstanding: | ||||
Basic (in shares) | 106,004,152 | 96,935,986 | 105,264,752 | 96,317,513 |
Diluted (in shares) | 106,603,713 | 110,650,253 | 106,232,581 | 110,482,991 |
Dividends per share of Class A common stock (in dollars per share) | $ 0.340 | $ 0.325 | $ 1.020 | $ 0.965 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Net income (loss) | $ 30,948 | $ 83,464 | $ 91,552 | $ 194,829 |
Unrealized gain (loss) on securities, net of tax: | ||||
Unrealized gain (loss) on real estate securities, available for sale | 1,389 | (1,109) | 27,414 | (14,554) |
Reclassification adjustment for (gain) loss included in net income (loss) | (3,398) | 2,554 | (10,639) | 4,896 |
Total other comprehensive income (loss) | (2,009) | 1,445 | 16,775 | (9,658) |
Comprehensive income (loss) | 28,939 | 84,909 | 108,327 | 185,171 |
Comprehensive (income) loss attributable to noncontrolling interest in consolidated joint ventures | (64) | (7,843) | 691 | (16,132) |
Comprehensive income (loss) of combined Class A common shareholders and Operating Partnership unitholders | 28,875 | 77,066 | 109,018 | 169,039 |
Comprehensive (income) loss attributable to noncontrolling interest in operating partnership | (3,104) | (9,160) | (12,087) | (21,358) |
Class A Common Stock | ||||
Unrealized gain (loss) on securities, net of tax: | ||||
Comprehensive income (loss) attributable to Class A common shareholders | $ 25,771 | $ 67,906 | $ 96,931 | $ 147,681 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) $ in Thousands | Total | Class A Common Stock | Class B Common Stock | Common StockClass A Common Stock | Common StockClass B Common Stock | Additional Paid- in-Capital | Treasury Stock | Retained Earnings (Dividends in Excess of Earnings) | Accumulated Other Comprehensive Income (Loss) | Operating Partnership | Consolidated Joint Ventures | |
Beginning Balance (in shares) at Dec. 31, 2017 | 93,641,000 | 17,668,000 | ||||||||||
Beginning Balance at Dec. 31, 2017 | $ 1,488,146 | $ 94 | $ 18 | $ 1,306,136 | $ (31,956) | $ (39,112) | $ (212) | $ 240,861 | $ 12,317 | |||
Increase Decrease in Stockholders' Equity | ||||||||||||
Contributions | 5,779 | 5,779 | ||||||||||
Distributions | (37,591) | (13,191) | (24,400) | |||||||||
Amortization of equity based compensation | 6,667 | 6,667 | ||||||||||
Grants of restricted stock (in shares) | 34,000 | |||||||||||
Shares acquired to satisfy minimum required federal and state tax withholding on vesting restricted stock and units (in shares) | (56,000) | |||||||||||
Shares acquired to satisfy minimum required federal and state tax withholding on vesting restricted stock and units | (837) | (837) | ||||||||||
Forfeitures (in shares) | (26,000) | |||||||||||
Dividends declared | (94,206) | (94,206) | ||||||||||
Exchange of noncontrolling interest for common stock (in shares) | 4,549,832 | (4,549,832) | 4,550,000 | (4,550,000) | ||||||||
Exchange of noncontrolling interest for common stock | 514 | $ 5 | $ (5) | 63,109 | (167) | (62,428) | ||||||
Net income (loss) | 194,829 | 155,911 | 22,786 | 16,132 | ||||||||
Other comprehensive income (loss) | (9,658) | (8,230) | (1,428) | |||||||||
Rebalancing of ownership percentage between Company and Operating Partnership | (896) | 27 | 869 | |||||||||
Ending Balance (in shares) at Sep. 30, 2018 | 98,143,000 | 13,118,000 | ||||||||||
Ending Balance at Sep. 30, 2018 | 1,553,643 | $ 99 | $ 13 | 1,375,016 | (32,793) | 22,593 | (8,582) | 187,469 | 9,828 | |||
Beginning Balance (in shares) at Jun. 30, 2018 | 97,938,000 | 13,318,000 | ||||||||||
Beginning Balance at Jun. 30, 2018 | 1,512,462 | $ 99 | $ 13 | 1,370,092 | (32,793) | (12,106) | (9,855) | 185,158 | 11,854 | |||
Increase Decrease in Stockholders' Equity | ||||||||||||
Contributions | 739 | 739 | ||||||||||
Distributions | (14,900) | (4,292) | (10,608) | |||||||||
Amortization of equity based compensation | 2,162 | 2,162 | ||||||||||
Grants of restricted stock (in shares) | 5,000 | |||||||||||
Dividends declared | (31,931) | (31,931) | ||||||||||
Exchange of noncontrolling interest for common stock (in shares) | 200,000 | (200,000) | ||||||||||
Exchange of noncontrolling interest for common stock | 202 | $ 0 | 3,000 | (24) | (2,774) | |||||||
Net income (loss) | 83,464 | 66,630 | 8,991 | 7,843 | ||||||||
Other comprehensive income (loss) | 1,445 | 1,276 | 169 | |||||||||
Rebalancing of ownership percentage between Company and Operating Partnership | (238) | 21 | 217 | |||||||||
Ending Balance (in shares) at Sep. 30, 2018 | 98,143,000 | 13,118,000 | ||||||||||
Ending Balance at Sep. 30, 2018 | 1,553,643 | $ 99 | $ 13 | 1,375,016 | (32,793) | 22,593 | (8,582) | 187,469 | 9,828 | |||
Beginning Balance (in shares) at Dec. 31, 2018 | 103,941,000 | 13,118,000 | ||||||||||
Beginning Balance at Dec. 31, 2018 | 1,643,635 | [1] | $ 105 | $ 13 | 1,471,157 | (32,815) | 11,342 | (4,649) | 188,427 | 10,055 | ||
Increase Decrease in Stockholders' Equity | ||||||||||||
Contributions | 498 | 498 | ||||||||||
Distributions | (13,834) | (12,821) | (1,013) | |||||||||
Amortization of equity based compensation | 18,336 | 18,336 | ||||||||||
Grants of restricted stock (in shares) | 1,478,000 | |||||||||||
Grants of restricted stock | $ 1 | (1) | ||||||||||
Purchase of treasury stock (in shares) | (40,000) | |||||||||||
Purchase of treasury stock | (637) | (637) | ||||||||||
Re-issuance of treasury stock (in shares) | 92,000 | |||||||||||
Shares acquired to satisfy minimum required federal and state tax withholding on vesting restricted stock and units (in shares) | (462,000) | |||||||||||
Shares acquired to satisfy minimum required federal and state tax withholding on vesting restricted stock and units | (8,104) | (8,104) | ||||||||||
Forfeitures (in shares) | (9,000) | |||||||||||
Dividends declared | (109,375) | (109,375) | ||||||||||
Stock dividends (in shares) | 1,434,000 | 181,000 | ||||||||||
Stock dividends | 0 | $ 1 | 23,822 | (23,823) | ||||||||
Exchange of noncontrolling interest for common stock (in shares) | 1,140,000 | (1,140,000) | ||||||||||
Exchange of noncontrolling interest for common stock | 404 | $ 1 | $ (1) | 16,449 | 64 | (16,109) | ||||||
Net income (loss) | 91,552 | 81,996 | 10,247 | (691) | ||||||||
Other comprehensive income (loss) | 16,775 | 14,935 | 1,840 | |||||||||
Rebalancing of ownership percentage between Company and Operating Partnership | (164) | 17 | 147 | |||||||||
Ending Balance (in shares) at Sep. 30, 2019 | 107,574,000 | 12,159,000 | ||||||||||
Ending Balance at Sep. 30, 2019 | 1,639,250 | [1] | $ 108 | $ 12 | 1,529,599 | (41,556) | (39,860) | 10,367 | 171,731 | 8,849 | ||
Beginning Balance (in shares) at Jun. 30, 2019 | 107,551,000 | 12,159,000 | ||||||||||
Beginning Balance at Jun. 30, 2019 | 1,648,074 | $ 108 | $ 12 | 1,526,469 | (41,535) | (30,847) | 12,171 | 172,466 | 9,230 | |||
Increase Decrease in Stockholders' Equity | ||||||||||||
Contributions | 306 | 306 | ||||||||||
Distributions | (5,034) | (4,283) | (751) | |||||||||
Amortization of equity based compensation | 3,575 | 3,575 | ||||||||||
Re-issuance of treasury stock (in shares) | 24,000 | |||||||||||
Shares acquired to satisfy minimum required federal and state tax withholding on vesting restricted stock and units (in shares) | (1,000) | |||||||||||
Shares acquired to satisfy minimum required federal and state tax withholding on vesting restricted stock and units | (21) | (21) | ||||||||||
Dividends declared | (36,589) | (36,589) | ||||||||||
Net income (loss) | 30,948 | 27,576 | 3,308 | 64 | ||||||||
Other comprehensive income (loss) | (2,009) | (1,804) | (205) | |||||||||
Rebalancing of ownership percentage between Company and Operating Partnership | (445) | 445 | ||||||||||
Ending Balance (in shares) at Sep. 30, 2019 | 107,574,000 | 12,159,000 | ||||||||||
Ending Balance at Sep. 30, 2019 | $ 1,639,250 | [1] | $ 108 | $ 12 | $ 1,529,599 | $ (41,556) | $ (39,860) | $ 10,367 | $ 171,731 | $ 8,849 | ||
[1] | Includes amounts relating to consolidated variable interest entities. See Note 10 . |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 91,552 | $ 194,829 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
(Gain) loss on extinguishment/defeasance of debt | 1,070 | 4,392 |
Depreciation and amortization | 29,192 | 31,896 |
Unrealized (gain) loss on derivative instruments | (889) | (1,356) |
Unrealized (gain) loss on equity securities | (1,341) | 0 |
Unrealized (gain) loss on Agency interest-only securities | (38) | (456) |
Unrealized (gain) loss on investment in mutual fund | (308) | (204) |
Provision for loan losses | 600 | 13,600 |
Impairment of real estate | 1,350 | 0 |
Amortization of equity based compensation | 18,336 | 6,667 |
Amortization of deferred financing costs included in interest expense | 8,460 | 8,020 |
Amortization of premium on mortgage loan financing | (1,300) | (762) |
Amortization of above- and below-market lease intangibles | (867) | (1,286) |
Amortization of premium/(accretion) of discount and other fees on loans | (14,405) | (13,795) |
Amortization of premium/(accretion) of discount and other fees on securities | 82 | 2,944 |
Realized (gain) loss on sale of mortgage loan receivables held for sale | (38,589) | (12,893) |
Realized (gain) loss on securities | (10,726) | 4,896 |
Realized (gain) loss on sale of real estate, net | (963) | (96,341) |
Realized gain on sale of derivative instruments | 84 | 192 |
Origination of mortgage loan receivables held for sale | (554,115) | (1,115,218) |
Purchases of mortgage loan receivables held for sale | (9,934) | 0 |
Repayment of mortgage loan receivables held for sale | 492 | 1,324 |
Proceeds from sales of mortgage loan receivables held for sale | 574,303 | 926,889 |
(Income) loss from investments in unconsolidated joint ventures in excess of distributions received | (3,617) | (466) |
Distributions from operations of investment in unconsolidated joint ventures | 3,067 | 0 |
Deferred tax asset (liability) | 7,405 | (4,484) |
Changes in operating assets and liabilities: | ||
Accrued interest receivable | 4,275 | (1,968) |
Other assets | (5,921) | 7,503 |
Accrued expenses and other liabilities | (33,010) | (5,262) |
Net cash provided by (used in) operating activities | 64,245 | (51,339) |
Cash flows from investing activities: | ||
Origination of mortgage loan receivables held for investment | (985,825) | (1,240,894) |
Repayment of mortgage loan receivables held for investment | 1,191,908 | 755,404 |
Purchases of real estate securities | (1,192,852) | (303,021) |
Repayment of real estate securities | 178,468 | 93,185 |
Basis recovery of Agency interest-only securities | 9,339 | 14,898 |
Proceeds from sales of real estate securities | 534,249 | 306,109 |
Purchases of real estate | (13,905) | (113,903) |
Capital improvements of real estate | (3,606) | (4,822) |
Proceeds from sale of real estate | 10,794 | 153,398 |
Capital contributions and advances to investment in unconsolidated joint ventures | (56,393) | (370) |
Capital distribution from investment in unconsolidated joint ventures | 46,019 | 1,250 |
Capitalization of interest on investment in unconsolidated joint ventures | (142) | (1,074) |
Purchase of FHLB stock | (3,704) | 0 |
Proceeds from sale of FHLB stock | 0 | 20,000 |
Purchase of derivative instruments | (210) | (305) |
Sale of derivative instruments | 101 | 114 |
Net cash provided by (used in) investing activities | (285,759) | (320,031) |
Cash flows from financing activities: | ||
Deferred financing costs paid | (4,453) | (2,975) |
Proceeds from borrowings under debt obligations | 10,186,669 | 4,401,648 |
Repayment of borrowings under debt obligations | (9,771,014) | (3,969,654) |
Cash dividends paid to Class A common shareholders | (144,306) | (122,770) |
Payment of liability assumed in exchange for shares for the minimum withholding taxes on vesting restricted stock | (8,106) | (837) |
Purchase of treasury stock | (637) | 0 |
Net cash provided by (used in) financing activities | 244,817 | 273,600 |
Net increase (decrease) in cash, cash equivalents and restricted cash | 23,303 | (97,770) |
Cash, cash equivalents and restricted cash at beginning of period | 98,450 | 182,683 |
Cash, cash equivalents and restricted cash at end of period | 121,753 | 84,913 |
Supplemental information: | ||
Cash paid for interest, net of amounts capitalized | 164,429 | 151,868 |
Cash paid (received) for income taxes | 4,817 | 5,718 |
Non-cash investing and financing activities: | ||
Securities and derivatives purchased, not settled | 7,000 | 14 |
Securities and derivatives sold, not settled | 3,962 | 0 |
Repayment in transit of mortgage loans receivable held for investment (other assets) | 6,120 | 31,764 |
Repayment of mortgage loans receivable held for sale | 128 | 0 |
Settlement of mortgage loan receivable held for investment by real estate, net | (17,851) | 0 |
Transfer from mortgage loans receivable held for sale to mortgage loans receivable held for investment, net, at amortized cost | 35,940 | 55,403 |
Proceeds from sale of real estate | 0 | 1,421 |
Real estate acquired in settlement of mortgage loan receivable held for investment, net | 17,851 | 0 |
Net settlement of sale of real estate, subject to debt - real estate | (11,943) | 0 |
Net settlement of sale of real estate, subject to debt - debt obligations | 11,943 | 0 |
Reduction in proceeds from sales of real estate | 0 | 62,417 |
Assumption of debt obligations by real estate buyer/defeasance of debt and related costs | 0 | (62,417) |
Exchange of noncontrolling interest for common stock | 16,110 | 62,433 |
Change in deferred tax asset related to exchanges of noncontrolling interest for common stock | 0 | 428 |
Increase in amount payable pursuant to tax receivable agreement | (11) | (86) |
Rebalancing of ownership percentage between Company and Operating Partnership | 147 | 869 |
Dividends declared, not paid | 2,384 | 1,964 |
Stock dividends | 23,824 | 0 |
Total cash, cash equivalents and restricted cash shown in the consolidated statement of cash flows | 98,450 | 182,683 |
Consolidated Joint Venture | ||
Cash flows from financing activities: | ||
Capital distributed to noncontrolling interests | (1,013) | (24,400) |
Capital contributed by noncontrolling interests in consolidated joint ventures | 498 | 5,779 |
Operating Partnership | ||
Cash flows from financing activities: | ||
Capital distributed to noncontrolling interests | $ (12,821) | $ (13,191) |
ORGANIZATION AND OPERATIONS
ORGANIZATION AND OPERATIONS | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND OPERATIONS | 1. ORGANIZATION AND OPERATIONS Ladder Capital Corp is an internally-managed real estate investment trust (“REIT”) that is a leader in commercial real estate finance. Ladder originates and invests in a diverse portfolio of commercial real estate and real estate-related assets, focusing on senior secured assets. Ladder’s investment activities include: (i) direct origination of commercial real estate first mortgage loans; (ii) investments in investment grade securities secured by first mortgage loans on commercial real estate; and (iii) investments in net leased and other commercial real estate equity. Ladder Capital Corp, as the general partner of Ladder Capital Finance Holdings LLLP (“LCFH,” “Predecessor” or the “Operating Partnership”), operates the Ladder Capital business through LCFH and its subsidiaries. As of September 30, 2019 , Ladder Capital Corp has a 89.8% economic interest in LCFH and controls the management of LCFH as a result of its ability to appoint its board members. Accordingly, Ladder Capital Corp consolidates the financial results of LCFH and its subsidiaries and records a noncontrolling interest for the economic interest in LCFH held by certain existing owners of LCFH, who were limited partners of LCFH prior Ladder Capital Corp’s initial public offering (“IPO”) and continue to hold an economic interest in LCFH and voting shares of Ladder Capital Corp Class B common stock (the “Continuing LCFH Limited Partners”). In addition, Ladder Capital Corp, through certain subsidiaries which are treated as taxable REIT subsidiaries (each a “TRS”), is indirectly subject to U.S. federal, state and local income taxes. Other than the noncontrolling interest in the Operating Partnership and such indirect U.S. federal, state and local income taxes, there are no material differences between Ladder Capital Corp’s consolidated financial statements and LCFH’s consolidated financial statements. Ladder Capital Corp was formed as a Delaware corporation on May 21, 2013. The Company conducted its 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 LCFH. 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. The IPO transactions described herein are referred to as the “IPO Transactions.” Pursuant to LCFH’s Third Amended and Restated LLLP Agreement, dated as of December 31, 2014 and as amended from time to time, 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) may from time to time, subject to certain conditions, receive one share of the Company’s Class A common stock in exchange for (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, subject to equitable adjustments for stock splits, stock dividends and reclassifications. However, such exchange for shares of Ladder Capital Corp Class A common stock will not affect the exchanging owners’ voting power since the votes represented by the canceled shares of Ladder Capital Corp Class B common stock will be replaced with the votes represented by the shares of Class A common stock for which such Series Units, including TRS Shares as applicable, will be exchanged. As a result of the Company’s ownership interest in LCFH 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. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | 2. SIGNIFICANT ACCOUNTING POLICIES Basis of Accounting and Principles of Consolidation The accompanying consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). In the opinion of management, the unaudited financial information for the interim periods presented in this report reflects all normal and recurring adjustments necessary for a fair statement of results of operations, financial position and cash flows. The interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2018 , which are included in the Company’s Annual Report, as certain disclosures that would substantially duplicate those contained in the audited consolidated financial statements have not been included in this interim report. Operating results for interim periods are not necessarily indicative of operating results for an entire fiscal year. The interim consolidated financial statements have been prepared, without audit, and do not necessarily include all information and footnotes necessary for a fair statement of our consolidated financial position, results of operations and cash flows in accordance with GAAP. The 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. Financial Accounting Standards Board (“FASB”) 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 the entity that has both of the following characteristics: (1) the power to direct the activities that, when taken together, most significantly impact the VIE’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. See Note 10 for further information on the Company’s consolidated variable interest entities. 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 equity in the 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 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 consolidated financial statements in the period the changes are deemed to be necessary. Significant estimates made in the accompanying consolidated financial statements include, but are not limited to the following: • valuation of real estate securities; • valuation of mortgage loan receivables held for sale; • 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 (liability); • amounts payable pursuant to the Tax Receivable Agreement; • determination of effective yield for recognition of interest income; • adequacy of provision for loan losses including the valuation of underlying collateral for collateral dependent loans; • determination of other than temporary impairment of real estate securities and investments in and advances to 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. 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 September 30, 2019 and December 31, 2018 . At September 30, 2019 and December 31, 2018 , and at various times during the years, the balances exceeded the insured limits. Restricted Cash Restricted cash is comprised of accounts the Company maintains 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 also includes tenant security deposits, deposits related to real estate sales and acquisitions and required escrow balances on credit facilities. Prior to January 1, 2017, these amounts were previously recorded in other assets on the Company’s consolidated balance sheets. Recognition of Operating Lease Income and Tenant Recoveries The Company adopted ASC Topic 842 on January 1, 2019. The primary impact of applying ASC Topic 842 was the initial recognition of a $3.5 million lease liability and a $3.3 million right-of-use asset (including previously accrued straight line rent) on the Company’s consolidated financial statements, for leases classified as operating leases under ASC Topic 840, primarily for the Company’s corporate headquarters and other identified leases. There is no cumulative effect on retained earnings or other components of equity recognized as of January 1, 2019. Certain arrangements may contain both lease and non-lease components. The Company determines if an arrangement is, or contains, a lease at contract inception. Only the lease components of these contractual arrangements are subject to the provisions of ASC Topic 842. Any non-lease components are subject to other applicable accounting guidance. We have elected, however, to adopt the optional practical expedient not to separate lease components from non-lease components for accounting purposes. This policy election has been adopted for each of the Company’s leased asset classes existing as of the effective date and subject to the transition provisions of ASC Topic 842, will be applied to all new or modified leases executed on or after January 1, 2019. For contractual arrangements executed in subsequent periods involving a new leased asset class, the Company will determine at contract inception whether it will apply the optional practical expedient to the new leased asset class. Leases are evaluated for classification as operating or finance leases at the commencement date of the lease. Right-of-use assets and corresponding liabilities are recognized on the Company’s consolidated balance sheet based on the present value of future lease payments relating to the use of the underlying asset during the lease term. Future lease payments include fixed lease payments as well as variable lease payments that depend upon an index or rate using the index or rate at the commencement date and probable amounts owed under residual value guarantees. The amount of future lease payments may be increased to include additional payments related to lease extension, termination, and/or purchase options when the Company has determined, at or subsequent to lease commencement, generally due to limited asset availability or operating commitments, it is reasonably certain of exercising such options. The Company uses its incremental borrowing rate as the discount rate in determining the present value of future lease payments, unless the interest rate implicit in the lease arrangement is readily determinable. Lease payments that vary based on future usage levels, the nature of leased asset activities, or certain other contingencies, are not included in the measurement of lease right-of-use assets and corresponding liabilities. The Company has elected not to record assets and liabilities on its consolidated balance sheet for lease arrangements with terms of 12 months or less. 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. Out-of-Period Adjustments During the first quarter of 2018, the Company recorded an out-of-period adjustment to increase tenant real estate tax recoveries on a net lease property by $1.1 million , which was not billed until the three month period ended March 31, 2018, but related to prior periods. The Company has concluded that this adjustment was not material to the financial position or results of operations for the three months ended March 31, 2018 or any prior periods; accordingly, the Company recorded the related adjustment in the three month period ended March 31, 2018. Recently Adopted Accounting Pronouncements In February 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842) (“ASU 2016-02”), which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e. lessees and lessors). The new standard requires lessees to apply a dual approach, classifying leases as either operating leases or financing leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification will determine whether lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term greater than 12 months regardless of their classification. Leases with a term of 12 months or less will be accounted for similar to existing guidance for operating leases today. The new standard requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sale-type leases, direct financing leases and operating leases. ASU 2016-02 supersedes the previous lease standard, Leases (Topic 840) . In July 2018, the FASB issued ASU 2018-10, Codification Improvements to Topic 842 (Leases) (“ASU 2018-10”), which provides narrow amendments to clarify how to apply certain aspects of the new leasing standard. In July 2018, the FASB also issued ASU 2018-11, Leases (Topic 842): Targeted Improvements (“ASU 2018-11”), which provides a new transition method at the adoption date through a cumulative-effect adjustment to the opening balance of retained earnings, prior periods will not require restatement. ASU 2018-11 also provides a new practical expedient for lessors adopting the new lease standard. Lessors have the option to aggregate nonlease components with the related lease component upon adoption of the new standard if the following conditions are met: (1) the timing and pattern of transfer for the nonlease component and the related lease component are the same and (2) the stand-alone lease component would be classified as an operating lease if accounted for separately. In December 2018, the FASB issued ASU 2018-20, Leases (Topic 842) (“ASU 2018-20”), which provides narrow amendments to clarify how to apply certain aspects of the new leasing standard. Each of the standards are effective for the Company on January 1, 2019, with early adoption permitted. In March 2019, the FASB issued ASU 2019-01, Leases (Topic 842): Codification Improvements (“ASU 2019-01”), which aligns the guidance for fair value of the underlying asset by lessors that are not manufacturers or dealers in Topic 842 with that of existing guidance. As a result, the fair value of the underlying asset at lease commencement is its cost, reflecting any volume or trade discounts that may apply. However, if there has been a significant lapse of time between when the underlying asset is acquired and when the lease commences, the definition of fair value in Topic 820, Fair Value Measurement should be applied. ASU 2019-01 also requires lessors within the scope of Topic 942, Financial Services—Depository and Lending , to present all “principal payments received under leases” within investing activities. The Company adopted ASU 2016-02, ASU 2018-10, ASU 2018-11, ASU 2018-20 and ASU 2019-01, collectively FASB ASC Topic 842, Leases (“ASC Topic 842”), beginning January 1, 2019. The Company adopted ASU Topic 842 using the modified retrospective approach and elected to utilize the Optional Transition Method, which permits the Company to apply the provisions of ASC Topic 842 to leasing arrangements existing at or entered into after January 1, 2019, and present in its financial statements comparative periods prior to January 1, 2019 under the historical requirements of ASC Topic 840. In addition, the Company elected to adopt the package of optional transition-related practical expedients, which among other things, allows the Company to carry forward certain historical conclusions reached under ASC Topic 840 regarding lease identification, classification, and the accounting treatment of initial direct costs. Furthermore, the Company elected not to record assets and liabilities on its consolidated balance sheets for new or existing lease arrangements with terms of 12 months or less. In March 2017, the FASB issued ASU 2017-08, Receivables-Nonrefundable Fees and Other Costs (Subtopic 310-20), (“ASU 2017-08”). The ASU shortens the amortization period for the premium on certain purchased callable debt securities to the earliest call date. Historically, entities generally amortized the premium over the contractual life of the security. The new guidance does not change the accounting for purchased callable debt securities held at a discount; the discount continues to be amortized to maturity. ASU No. 2017-08 is effective for interim and annual reporting periods beginning after December 15, 2018; early adoption is permitted. The guidance calls for a modified retrospective transition approach under which a cumulative-effect adjustment will be made to retained earnings as of the beginning of the first reporting period in which the guidance is adopted. The adoption of ASU 2017-08 on January 1, 2019 had no material impact on the Company’s consolidated financial statements. In July 2017, the FASB issued ASU 2017-11, Earnings Per Share (Topic 260), Distinguishing Liabilities from Equity (Topic 480) and Derivatives and Hedging (Topic 815): I. Accounting for Certain Financial Instruments with Down Round Features; II. Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Noncontrolling Interests with a Scope Exception , (“ASU 2017-11”). Part I of this update addresses the complexity of accounting for certain financial instruments with down round features. Down round features are features of certain equity-linked instruments (or embedded features) that result in the strike price being reduced on the basis of the pricing of future equity offerings. Current accounting guidance creates cost and complexity for entities that issue financial instruments (such as warrants and convertible instruments) with down round features that require fair value measurement of the entire instrument or conversion option. Part II of this update addresses the difficulty of navigating Topic 480, Distinguishing Liabilities from Equity , because of the existence of extensive pending content in the FASB Accounting Standards Codification. This pending content is the result of the indefinite deferral of accounting requirements about mandatorily redeemable financial instruments of certain nonpublic entities and certain mandatorily redeemable noncontrolling interests. The amendments in Part II of this update do not have an accounting effect. This ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018. The adoption of ASU 2017-11 on January 1, 2019 had no material impact on the Company’s consolidated financial statements. In January 2018, the FASB issued ASU 2018-01, Land Easement Practical Expedient for Transition to Topic 842, (“ASU 2018-01”). This ASU provides an optional transition practical expedient that, if elected, would not require companies to reconsider their accounting for existing or expired land easements before adoption of Topic 842 and that were not previously accounted for as leases under Topic 840. This ASU will be effective January 1, 2019 and early adoption is permitted. The adoption of ASU 2018-01 on January 1, 2019, had no material impact on the Company’s consolidated financial statements. In February 2018, the FASB issued ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220), (“ASU 2018-02”). This ASU allows an entity to elect to reclassify the stranded tax effects related to the Tax Cuts and Jobs Act of 2017 from accumulated other comprehensive income into retained earnings. This ASU will be effective January 1, 2019, and early adoption is permitted. The adoption of ASU 2018-02 on January 1, 2019 had no material impact on the Company’s consolidated financial statements. In July 2018, the FASB issued ASU 2018-09, Codification Improvements , (“ASU 2018-09”). This standard does not prescribe any new accounting guidance, but instead makes minor improvements and clarifications of several different FASB Accounting Standards Codification areas based on comments and suggestions made by various stakeholders. Certain updates are applicable immediately while others provide for a transition period to adopt as part of the next fiscal year beginning after December 15, 2018. The adoption of ASU 2018-09 had no material impact on the Company’s consolidated financial statements. Recent Accounting Pronouncements Pending Adoption In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, (“ASU 2016-13”). The guidance changes the impairment model for most financial assets. The new model uses a forward-looking expected loss method, which will generally result in earlier recognition of allowances for losses. ASU 2016-13 is effective for annual and interim periods beginning after December 15, 2019, and early adoption is permitted for annual and interim periods beginning after December 15, 2018. In November 2018, the FASB issued ASU 2018-19 to clarify that operating lease receivables recorded by lessors are explicitly excluded from the scope of ASU 2016-13. In May 2019, the FASB issued ASU 2019-05 to provide an option to irrevocably elect to measure certain individual financial assets at fair value instead of amortized cost. The Company must apply the amendments in these updates through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. The Company is currently assessing the impact of this standard on the consolidated financial statements. In general, the allowance for credit losses is expected to increase when changing from an incurred loss to expected loss methodology. The models and methodologies that are currently used in estimating the allowance for credit losses are being evaluated to identify the changes necessary to meet the requirements of the new standard. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement, (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement, (“ASU 2018-13”). ASU 2018-13 eliminates, adds and modifies certain disclosure requirements for fair value measurements as part of its disclosure framework project. The standard is effective for all entities for financial statements issued for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted. The Company does not expect the adoption of ASU 2018-02 to have a material impact on its financial statements and related disclosures. In October 2018, the FASB issued ASU 2018-17, Consolidation (Topic 810): Targeted Improvements to Related Party Guidance for Variable Interest Entities, (“ASU 2018-17”). ASU 2018-17 requires reporting entities to consider indirect interests held through related parties under common control on a proportional basis rather than as the equivalent of a direct interest in its entirety for determining whether a decision-making fee is a variable interest. The standard is effective for all entities for financial statements issued for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted. Entities are required to apply the amendments in ASU 2018-17 retrospectively with a cumulative-effect adjustment to retained earnings at the beginning of the earliest period presented. The Company is currently evaluating this guidance to determine the impact it may have on its consolidated financial statements. In April 2019, the FASB issued ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments, (“ASU 2019-04”). ASU 2019-04 clarifies and improves areas of guidance related to the recently issued standards on credit losses (ASU 2016-13), hedging (ASU 2017-12), and recognition and measurement of financial instruments (ASU 2016-01). The amendments generally have the same effective dates as their related standards. If already adopted, the amendments of ASU 2016-01 and ASU 2016-13 are effective for fiscal years beginning after December 15, 2019 and the amendments of ASU 2017-12 are effective as of the beginning of the Company’s next annual reporting period; early adoption is permitted. The Company previously adopted ASU 2016-01 and does not expect the amendments of ASU 2019-04 to have a material impact on its consolidated financial statements. Any new accounting standards not disclosed above that have been issued or proposed by FASB and that do not require adoption until a future date are not expected to have a material impact on the consolidated financial statements upon adoption. |
MORTGAGE LOAN RECEIVABLES
MORTGAGE LOAN RECEIVABLES | 9 Months Ended |
Sep. 30, 2019 | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Abstract] | |
MORTGAGE LOAN RECEIVABLES | 3. MORTGAGE LOAN RECEIVABLES September 30, 2019 ($ in thousands) Outstanding Face Amount Carrying Value Weighted Average Yield (1) Remaining Maturity (years) Mortgage loan receivables held for investment, net, at amortized cost: Mortgage loans held by consolidated subsidiaries: First mortgage loans(2) $ 3,116,050 $ 3,098,241 7.14 % 1.27 Mezzanine loans 133,661 133,202 10.87 % 3.76 Total mortgage loans held by consolidated subsidiaries 3,249,711 3,231,443 7.29 % 1.37 Provision for loan losses N/A (18,500 ) Total mortgage loan receivables held for investment, net, at amortized cost 3,249,711 3,212,943 Mortgage loan receivables held for sale: First mortgage loans 173,957 174,214 4.59 % 9.68 Total $ 3,423,668 $ 3,387,157 7.19 % 1.81 (1) September 30, 2019 London Interbank Offered Rate (“LIBOR”) rates are used to calculate weighted average yield for floating rate loans. (2) Includes amounts relating to consolidated variable interest entities. See Note 10 . As of September 30, 2019 , $2.5 billion , or 78.4% of the outstanding face amount of our mortgage loan receivables held for investment, net, at amortized cost, were at variable interest rates, linked to LIBOR. Of this $2.5 billion , 100% of these variable interest rate mortgage loan receivables were subject to interest rate floors. As of September 30, 2019 , $174.0 million , or 100% , of the outstanding face amount of our mortgage loan receivables held for sale were at fixed interest rates. December 31, 2018 ($ in thousands) Outstanding Face Amount Carrying Value Weighted Average Yield (1) Remaining Maturity (years) Mortgage loan receivables held for investment, net, at amortized cost: Mortgage loans held by consolidated subsidiaries: First mortgage loans(2) $ 3,192,160 $ 3,170,788 7.70 % 1.18 Mezzanine loans 148,221 147,602 10.89 % 4.35 Total mortgage loans held by consolidated subsidiaries 3,340,381 3,318,390 7.84 % 1.32 Provision for loan losses N/A (17,900 ) Total mortgage loan receivables held for investment, net, at amortized cost 3,340,381 3,300,490 Mortgage loan receivables held for sale: First mortgage loans 181,905 182,439 5.46 % 9.75 Total $ 3,522,286 $ 3,482,929 7.76 % 1.77 (1) December 31, 2018 LIBOR rates are used to calculate weighted average yield for floating rate loans. (2) Includes amounts relating to consolidated variable interest entities. See Note 10 . As of December 31, 2018 , $2.5 billion , or 75.4% , of the outstanding principal of our mortgage loan receivables held for investment, net, at amortized cost, were at variable interest rates, linked to LIBOR. Of this $2.5 billion , 100% of these variable rate mortgage loan receivables were subject to interest rate floors. As of December 31, 2018 , $182.4 million , or 100% , of the carrying value of our mortgage loan receivables held for sale were at fixed interest rates. For the nine months ended September 30, 2019 and 2018 , the activity in our loan portfolio was as follows ($ in thousands): Mortgage loan receivables held for investment, net, at amortized cost: Mortgage loans held by consolidated subsidiaries Mortgage loans transferred but not considered sold Provision for loan losses Mortgage loan receivables held for sale Balance, December 31, 2018 $ 3,318,390 $ — $ (17,900 ) $ 182,439 Origination of mortgage loan receivables 985,825 — — 554,115 Purchases of mortgage loan receivables — — — 9,934 Repayment of mortgage loan receivables (1,105,506 ) — — (620 ) Proceeds from sales of mortgage loan receivables(1) — (15,504 ) — (558,799 ) Non-cash disposition of loans via foreclosure(2) (17,611 ) — — — Sale of loans, net — — — 38,589 Transfer between held for investment and held for sale(1) 35,940 15,504 — (51,444 ) Accretion/amortization of discount, premium and other fees 14,405 — — — Provision for loan losses — — (600 ) — Balance, September 30, 2019 $ 3,231,443 $ — $ (18,500 ) $ 174,214 (1) During the three months ended March 31, 2019, the Company reclassified from mortgage loan receivables held for sale to mortgage loan receivables held for investment, net, at amortized cost, one loan with an outstanding face amount of $15.4 million , a book value of $15.5 million (fair value at the date of reclassification) and a remaining maturity of 9.8 years, which was sold to the WFCM 2019-C49 securitization trust. Subsequently, the controlling loan interest was sold to the UBS 2019-C16 securitization trust, and as a result, the loan previously sold during the three months ended March 31, 2019 was accounted for as a sale during the six months ended June 30, 2019. (2) Refer to Note 5 Real Estate and Related Lease Intangibles, Net for further detail on foreclosure of real estate. Mortgage loan receivables held for investment, net, at amortized cost: Mortgage loans held by consolidated subsidiaries Provision for loan losses Mortgage loan receivables held for sale Balance, December 31, 2017 $ 3,282,462 $ (4,000 ) $ 230,180 Origination of mortgage loan receivables 1,240,894 — 1,115,218 Repayment of mortgage loan receivables (787,167 ) — (1,324 ) Proceeds from sales of mortgage loan receivables — — (926,402 ) Sale of loans, net(1) — — 12,893 Transfer between held for investment and held for sale(2) 55,403 — (55,403 ) Accretion/amortization of discount, premium and other fees 13,795 — — Provision for loan losses(3) — (13,600 ) — Balance, September 30, 2018 $ 3,805,387 $ (17,600 ) $ 375,162 (1) Includes $0.5 million of realized losses on loans related to lower of cost or market adjustments for the nine months ended September 30, 2018 . (2) During the nine months ended September 30, 2018 , the Company reclassified from mortgage loan receivables held for sale to mortgage loan receivables held for investment, net, at amortized cost, three loans with a combined outstanding face amount of $57.6 million , a combined book value of $55.4 million (fair value at date of reclassification) and a remaining maturity of 2.5 years . The loans had been recorded at lower of cost or market prior to their reclassification. The discount to fair value is the result of an increase in market interest rates since the loans’ origination and not a deterioration in credit of the borrowers or collateral coverage and the Company expects to collect all amounts due under the loans. (3) As further discussed below, during the three and nine months ended September 30, 2018 , the Company recorded asset-specific provisions on collateral dependent loans of $10.0 million and $12.7 million , respectively. In addition. the Company records a portfolio-based, general loan loss provision to provide reserves for expected losses over the remaining portfolio of mortgage loan receivables held for investment. During the three and nine months ended September 30, 2018 , the Company recorded an additional general reserve of $0.3 million and $0.9 million , respectively. During the nine months ended September 30, 2019 and September 30, 2018 , the transfers of financial assets via sales of loans were treated as sales under ASC Topic 860 — Transfers and Servicing . As of September 30, 2019 and December 31, 2018 , there was $0.1 million and $0.5 million , respectively, of unamortized discounts included in our mortgage loan receivables held for investment, net, at amortized cost, on our consolidated balance sheets. Provision for Loan Losses and Non-Accrual Status ($ in thousands) Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Allowance for loan losses at beginning of period $ 18,500 $ 7,300 $ 17,900 $ 4,000 Provision for loan losses — 10,300 600 13,600 Allowance for loan losses at end of period $ 18,500 $ 17,600 $ 18,500 $ 17,600 September 30, 2019 December 31, 2018 Principal balance of loans on non-accrual status(1) $ 37,161 $ 36,850 (1) Represents two of the Company’s loans, which were originated simultaneously as part of a single transaction and had a carrying value of $26.9 million and one loan with a carrying value of $45.0 million , as further discussed below. 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, other than the three loans discussed below, are individually impaired as of September 30, 2019 and December 31, 2018 . It is probable, however, that Ladder’s loan portfolio as a whole incurred an impairment due to common characteristics and shared inherent risks in the portfolio. The Company determined that a provision expense for loan losses of $0.6 million was required for the nine months ended September 30, 2019 . This provision consisted of a portfolio-based, general loan loss provision of $0.6 million to provide reserves for expected losses over the remaining portfolio of mortgage loan receivables held for investment, and no additional asset-specific reserves. As of September 30, 2019 , two of the Company’s loans, which were originated simultaneously as part of a single transaction and had a carrying value of $26.9 million , were in default. These loans are directly and indirectly secured by the same property and are considered collateral dependent because repayment is expected to be provided solely by the underlying collateral. The Company placed these loans on non-accrual status in July 2017. In assessing these collateral dependent loans for impairment, the most significant consideration is the fair value of the underlying real estate collateral, which includes an in-place long-dated retail lease. The value of such property is most significantly affected by the contractual lease terms and the appropriate market capitalization rates, which are driven by the property’s market strength, the general interest rate environment and the retail tenant’s creditworthiness. In view of these considerations, the Company uses a direct capitalization rate valuation methodology to calculate the fair value of the underlying real estate collateral. These non-recurring fair values are considered Level 3 measurements in the fair value hierarchy. During the three months ended March 31, 2018, management believed these loans to be potentially impaired, reflecting a decline in collateral value attributable to: (i) on-going bankruptcy proceedings; (ii) rising interest rates; and (iii) the retail tenant’s creditworthiness. As a result, on March 31, 2018, the Company recorded a provision for loss on these loans of $2.7 million to reduce the carrying value of these loans to the fair value of the property less the cost to foreclose and sell the property utilizing direct capitalization rates of 4.70% to 5.00% . As of September 30, 2019 , the Company believed no additional loss provision was necessary based on the application of direct capitalization rates of 4.60% to 4.90% . During the year ended December 31, 2018, management identified a loan with a carrying value of $45.0 million as potentially impaired, reflecting a decline in collateral value attributable to: (i) recent and near term tenant vacancies at the property; (ii) new information available during the three months ended September 30, 2018 regarding the addition of supply that will increase the local submarket vacancy rate; and (iii) declining market conditions. As part of the Company’s evaluation, it obtained an external appraisal of the loan collateral. Based on this review, a reserve of $10.0 million was recorded for this potentially impaired loan in the three months ended September 30, 2018 to reduce the carrying value of the loan to the estimated fair value of the collateral, less the estimated costs to sell. The Company has placed this loan on non-accrual status as of September 30, 2018. During the quarter ended December 31, 2018, this loan experienced a maturity default and its terms were modified in a Troubled Debt Restructuring (“TDR”) on October 17, 2018 . The terms of the TDR provided for, among other things, the restructuring of the Company’s existing $45.0 million first mortgage loan into a $35.0 million A-Note and a $10.0 million B-Note and a 19.0% equity interest which is not subject to dilution and that can be increased to 25% under certain conditions. Under certain conditions, the B-Note may be forgiven or reduced. The restructured loan was extended for up to 12 months, including extensions. There have been no additional changes during the nine months ended September 30, 2019 . On October 4, 2019, the loan was extended for an additional one month period with a November 6, 2019 maturity. On November 6, 2019 the loan was extended for an additional three month period with a February 6, 2020 maturity. Generally when granting concessions, the Company will seek to protect its position by requiring incremental pay downs, additional collateral or guarantees and in some cases lookback features or equity kickers to offset concessions granted should conditions impacting the loan improve. The Company's determination of credit losses is impacted by TDRs whereby loans that have gone through TDRs are considered impaired, assessed for specific reserves, and are not included in the Company's assessment of general loan loss reserves. Loans previously restructured under TDRs that subsequently default are reassessed to incorporate the Company's current assumptions on expected cash flows and additional provision expense is recorded to the extent necessary. As of September 30, 2019 , there were no unfunded commitments associated with modified loans considered TDRs. As of September 30, 2019 and December 31, 2018 there were no |
REAL ESTATE SECURITIES
REAL ESTATE SECURITIES | 9 Months Ended |
Sep. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
REAL ESTATE SECURITIES | 4. REAL ESTATE SECURITIES Commercial mortgage backed securities (“CMBS”), CMBS interest-only securities, Agency securities, Government National Mortgage Association (“GNMA”) construction securities, GNMA permanent securities and corporate bonds 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. 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. Equity securities are classified as available-for-sale and reported at fair value with changes in fair value recorded in current period earnings. The following is a summary of the Company’s securities at September 30, 2019 and December 31, 2018 ($ in thousands): September 30, 2019 Gross Unrealized Weighted Average Asset Type Outstanding Face Amount Amortized Cost Basis/Purchase Price Gains Losses Carrying Value # of Securities Rating (1) Coupon % Yield % Remaining Duration (years) CMBS(2) $ 1,779,458 $ 1,780,233 $ 9,012 $ (533 ) $ 1,788,712 (3) 139 AAA 3.27 % 3.14 % 2.38 CMBS interest-only(2)(4) 2,139,357 39,961 1,491 (12 ) 41,440 (5) 18 AAA 0.49 % 3.65 % 2.61 GNMA interest-only(4)(6) 113,096 2,202 119 (295 ) 2,026 12 AA+ 0.51 % 9.65 % 2.73 Agency securities(2) 641 652 2 — 654 2 AA+ 2.67 % 1.74 % 1.97 GNMA permanent securities(2) 31,760 31,984 811 — 32,795 6 AA+ 3.92 % 3.27 % 4.55 Corporate bonds(2) 32,088 31,604 768 — 32,372 1 BB- 3.63 % 4.81 % 1.31 Total debt securities $ 4,096,400 $ 1,886,636 $ 12,203 $ (840 ) $ 1,897,999 178 1.75 % 3.17 % 2.39 Equity securities(7) N/A 13,720 125 (388 ) 13,457 3 N/A N/A N/A N/A Total real estate securities $ 4,096,400 $ 1,900,356 $ 12,328 $ (1,228 ) $ 1,911,456 181 (1) 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. (2) CMBS, CMBS interest-only securities, Agency securities, GNMA permanent securities and corporate bonds 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. (3) Includes $11.6 million of restricted securities which are designated as risk retention securities under the Dodd-Frank Act and are therefore subject to transfer restrictions over the term of the securitization trust and are classified as held-to-maturity and reported at amortized cost. (4) The amounts presented represent the principal amount of the mortgage loans outstanding in the pool in which the interest-only securities participate. (5) Includes $0.8 million of restricted securities which are designated as risk retention securities under the Dodd-Frank Act and are therefore subject to transfer restrictions over the term of the securitization trust and are classified as held-to-maturity and reported at amortized cost. (6) Agency interest-only securities are recorded at fair value with changes in fair value recorded in current period earnings. The Company’s Agency interest-only securities are considered to be hybrid financial instruments that contain embedded derivatives. As a result, the Company has elected to account for them as hybrid instruments in their entirety at fair value with changes in fair value recognized in unrealized gain (loss) on Agency interest-only securities in the consolidated statements of income in accordance with ASC 815. (7) The Company has elected to account for equity securities at fair value with changes in fair value recorded in current period earnings. December 31, 2018 Gross Unrealized Weighted Average Asset Type Outstanding Face Amount Amortized Cost Basis Gains Losses Carrying Value # of Securities Rating (1) Coupon % Yield % Remaining Duration (years) CMBS(2) $ 1,258,819 $ 1,257,801 $ 2,477 $ (7,638 ) $ 1,252,640 (3) 138 AAA 3.32 % 3.14 % 2.33 CMBS interest-only(2)(4) 2,373,936 55,534 428 (271 ) 55,691 (5) 19 AAA 0.57 % 2.80 % 2.69 GNMA interest-only(4)(6) 135,932 2,862 93 (307 ) 2,648 12 AA+ 0.51 % 6.30 % 4.11 Agency securities(2) 668 682 — (20 ) 662 2 AA+ 2.73 % 1.83 % 2.36 GNMA permanent securities(2) 32,633 32,889 420 (245 ) 33,064 6 AA+ 3.94 % 3.76 % 5.03 Corporate bonds(2) 55,305 54,257 — (386 ) 53,871 2 BB 4.08 % 5.04 % 2.51 Total debt securities $ 3,857,293 $ 1,404,025 $ 3,418 $ (8,867 ) $ 1,398,576 179 1.54 % 3.19 % 2.40 Equity securities(7) N/A 13,154 — (1,604 ) 11,550 3 N/A N/A N/A N/A Total real estate securities $ 3,857,293 $ 1,417,179 $ 3,418 $ (10,471 ) $ 1,410,126 182 (1) 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. (2) CMBS, CMBS interest-only securities, Agency securities, GNMA permanent securities and corporate bonds 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. (3) Includes $11.3 million of restricted securities which are designated as risk retention securities under the Dodd-Frank Act and are therefore subject to transfer restrictions over the term of the securitization trust and are classified as held-to-maturity and reported at amortized cost. (4) The amounts presented represent the principal amount of the mortgage loans outstanding in the pool in which the interest-only securities participate. (5) Includes $0.9 million of restricted securities which are designated as risk retention securities under the Dodd-Frank Act and are therefore subject to transfer restrictions over the term of the securitization trust and are classified as held-to-maturity and reported at amortized cost. (6) Agency interest-only securities are recorded at fair value with changes in fair value recorded in current period earnings. The Company’s Agency interest-only securities are considered to be hybrid financial instruments that contain embedded derivatives. As a result, the Company accounts for them as hybrid instruments in their entirety at fair value with changes in fair value recognized in unrealized gain (loss) on Agency interest-only securities in the consolidated statements of income in accordance with ASC 815. (7) The Company has elected to account for equity securities at fair value with changes in fair value recorded in current period earnings. The following is a breakdown of the carrying value of the Company’s debt securities by remaining maturity based upon expected cash flows at September 30, 2019 and December 31, 2018 ($ in thousands): September 30, 2019 Asset Type Within 1 year 1-5 years 5-10 years After 10 years Total CMBS(1) $ 395,377 $ 1,212,074 $ 181,261 $ — $ 1,788,712 CMBS interest-only(1) 645 40,795 — — 41,440 GNMA interest-only(2) 250 1,515 261 — 2,026 Agency securities(1) — 654 — — 654 GNMA permanent securities(1) 344 32,451 — — 32,795 Corporate bonds(1) — 32,372 — — 32,372 Total debt securities $ 396,616 $ 1,319,861 $ 181,522 $ — $ 1,897,999 (1) CMBS, CMBS interest-only securities, Agency securities, GNMA permanent securities and corporate bonds 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. (2) Agency interest-only securities are recorded at fair value with changes in fair value recorded in current period earnings. December 31, 2018 Asset Type Within 1 year 1-5 years 5-10 years After 10 years Total CMBS(1) $ 342,121 $ 772,594 $ 137,925 $ — $ 1,252,640 CMBS interest-only(1) 1,145 54,546 — — 55,691 GNMA interest-only(2) 17 2,276 353 2 2,648 Agency securities(1) — 662 — — 662 GNMA permanent securities(1) 551 1,048 31,465 — 33,064 Corporate bonds(1) — 53,871 — — 53,871 Total debt securities $ 343,834 $ 884,997 $ 169,743 $ 2 $ 1,398,576 (1) CMBS, CMBS interest-only securities, Agency securities, GNMA permanent securities and corporate bonds 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. (2) Agency interest-only securities are recorded at fair value with changes in fair value recorded in current period earnings. During the three and nine months ended September 30, 2019 , the Company realized a gain (loss) on sale of equity securities of none and $0.1 million , respectively, which is included in realized gain (loss) on securities on the Company’s consolidated statements of income. During the three and nine months ended September 30, 2018 , the Company realized a gain (loss) on sale of equity securities of none and $0.1 million , which is included in realized gain (loss) on securities on the Company’s consolidated statements of income. There were $0.1 million realized losses on securities recorded as other than temporary impairments for the three and nine months ended September 30, 2019 . During the three and nine months ended September 30, 2018 there were $0.6 million and $2.2 million |
REAL ESTATE AND RELATED LEASE I
REAL ESTATE AND RELATED LEASE INTANGIBLES, NET | 9 Months Ended |
Sep. 30, 2019 | |
Real Estate [Abstract] | |
REAL ESTATE AND RELATED LEASE INTANGIBLES, NET | 5. REAL ESTATE AND RELATED LEASE INTANGIBLES, NET The following tables present additional detail related to our real estate portfolio, net, including foreclosed properties ($ in thousands): September 30, 2019 December 31, 2018 Land $ 197,682 $ 195,644 Building 820,783 814,314 In-place leases and other intangibles 159,721 162,002 Less: Accumulated depreciation and amortization (196,853 ) (173,938 ) Real estate and related lease intangibles, net $ 981,333 $ 998,022 Below market lease intangibles, net (other liabilities) $ (39,087 ) $ (40,367 ) At September 30, 2019 and December 31, 2018 , the Company held foreclosed properties included in real estate, net with a carrying value of $23.9 million and $6.3 million , respectively. The following table presents depreciation and amortization expense on real estate recorded by the Company ($ in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Depreciation expense(1) $ 7,394 $ 8,063 $ 22,776 $ 24,058 Amortization expense 1,612 2,336 6,342 7,782 Total real estate depreciation and amortization expense $ 9,006 $ 10,399 $ 29,118 $ 31,840 (1) Depreciation expense on the consolidated statements of income also includes $24 thousand and $18 thousand of depreciation on corporate fixed assets for the three months ended September 30, 2019 and 2018 , respectively, and $74 thousand and $56 thousand of depreciation on corporate fixed assets for the nine months ended September 30, 2019 and 2018 , respectively. The Company’s intangible assets are comprised of in-place leases, favorable leases compared to market leases and other intangibles. The following tables present additional detail related to our intangible assets ($ in thousands): September 30, 2019 December 31, 2018 Gross intangible assets(1) $ 159,721 $ 162,002 Accumulated amortization 61,056 57,712 Net intangible assets $ 98,665 $ 104,290 (1) Includes $4.6 million and $5.5 million of unamortized favorable lease intangibles which are included in real estate and related lease intangibles, net on the consolidated balance sheets as of September 30, 2019 and December 31, 2018 , respectively. Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Reduction in operating lease income for amortization of above market lease intangibles acquired $ (94 ) $ (155 ) $ (727 ) $ (535 ) Increase in operating lease income for amortization of below market lease intangibles acquired 564 500 1,594 1,821 The following table presents expected adjustment to operating lease income and expected amortization expense during the next five years and thereafter related to the above and below market leases and acquired in-place lease and other intangibles for property owned as of September 30, 2019 ($ in thousands): Period Ending December 31, Adjustment to Operating Lease Income Amortization Expense 2019 (last 3 months) $ 263 $ 1,601 2020 1,054 6,403 2021 1,054 6,232 2022 1,054 6,232 2023 1,054 6,232 Thereafter 29,981 67,233 Total $ 34,460 $ 93,933 Lease Prepayment by Lessor, Retirement of Related Mortgage Loan Financing and Impairment of Real Estate On January 10, 2019 , the Company received $10.0 million prepayment of a lease on a single-tenant two-story office building in Wayne, NJ. As of March 31, 2019, this property had a book value of $5.6 million , which is net of accumulated depreciation and amortization of $2.7 million . The Company recognized the $10.0 million of operating lease income on a straight-line basis over the revised lease term. On February 6, 2019 , the Company paid off $6.6 million of mortgage loan financing related to the property, recognizing a loss on extinguishment of debt of $1.1 million . During the three months ended March 31, 2019, the Company recorded a $1.4 million impairment of real estate to reduce the carrying value of the real estate to the estimated fair value of the real estate. On May 1, 2019 , the Company completed the sale of the property recognizing $3.9 million of operating lease income, $3.5 million realized loss on sale of real estate, net and $0.4 million of depreciation and amortization expense, resulting in a net loss of $20 thousand . See Note 15, Fair Value of Financial Instruments for further detail. There were $1.0 million and $0.8 million of rent receivables included in other assets on the consolidated balance sheets as of September 30, 2019 and December 31, 2018 , respectively. There was unencumbered real estate of $90.8 million and $58.6 million as of September 30, 2019 and December 31, 2018 , respectively. During the three and nine months ended September 30, 2019 , the Company recorded $1.1 million and $2.1 million of real estate operating income, respectively, which is included in operating lease income in the consolidated statements of income. The following is a schedule of non-cancellable, contractual, future minimum rent under leases (excluding property operating expenses paid directly by tenant under net leases) at September 30, 2019 ($ in thousands): Period Ending December 31, Amount 2019 (last 3 months) $ 21,347 2020 80,401 2021 69,055 2022 65,936 2023 64,106 Thereafter 520,897 Total $ 821,742 Acquisitions During the nine months ended September 30, 2019 , the Company acquired the following properties ($ in thousands): Acquisition Date Type Primary Location(s) Purchase Price/Fair Value on the Date of Foreclosure Ownership Interest (1) Purchases of real estate February 2019 Net Lease Houghton Lake, MI $ 1,242 100.0% February 2019 Net Lease Trenton, MO 1,164 100.0% April 2019 Net Lease Centralia, IL 1,242 100.0% June 2019 Net Lease Fayette, MO 1,423 100.0% July 2019 Net Lease Dexter, MO 1,150 100.0% July 2019 Net Lease Caledonia, MI 1,199 100.0% August 2019 Net Lease Poseyville, IN 1,220 100.0% September 2019 Net Lease Chillicothe, IL 1,445 100.0% September 2019 Net Lease Sullivan, IL 1,496 100.0% September 2019 Net Lease Becker, MN 1,185 100.0% September 2019 Net Lease Adrian, MO 1,138 100.0% Total purchases of real estate 13,904 Real estate acquired via foreclosure February 2019 Diversified Omaha, NE 18,200 100.0% Total real estate acquired via foreclosure 18,200 Total real estate acquisitions $ 32,104 (1) Properties were consolidated as of acquisition date. During the nine months ended September 30, 2019 , the Company acquired title to real estate in a foreclosure. The real estate had a fair value of $18.2 million and previously served as collateral for a mortgage loan receivable held for investment, which was previously on non-accrual status. This loan had an amortized cost of $17.8 million , accrued interest of $0.2 million and an unamortized discount of $0.1 million . The acquisition was accounted for in real estate, net, at fair value on the date of foreclosure. There was no gain or loss resulting from the foreclosure of the loan. On October 1, 2016, the Company early adopted ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business (“ASU 2017-01”). As a result of this adoption, acquisitions of real estate may not meet the revised definition of a business and may be treated as asset acquisitions rather than business combinations. The measurement of assets and liabilities acquired will no longer be recorded at fair value and the Company will now allocate purchase consideration based on relative fair values. Real estate acquisition costs, which are no longer expensed as incurred, will be capitalized as a component of the cost of the assets acquired. During the nine months ended September 30, 2019 , all acquisitions were determined to be asset acquisitions. The purchase prices were allocated to the asset acquisitions during the nine months ended September 30, 2019 , as follows ($ in thousands): Purchase Price Allocation Land $ 4,969 Building 25,571 Intangibles 2,309 Below Market Lease Intangibles (745 ) Total purchase price $ 32,104 The weighted average amortization period for intangible assets acquired during the nine months ended September 30, 2019 was 38.3 years . The Company recorded $167 thousand and $246 thousand in revenues from its 2019 acquisitions for the three and nine months ended September 30, 2019 , respectively, which is included in its consolidated statements of income. The Company recorded $(1.0) million and $(2.5) million in earnings (losses) from its 2019 acquisitions for the three and nine months ended September 30, 2019 , respectively, which is included in its consolidated statements of income. During the nine months ended September 30, 2018 , the Company acquired the following properties ($ in thousands): Acquisition Date Type Primary Location(s) Purchase Price Ownership Interest (1) March 2018 Diversified(2) Lithia Springs, GA $ 24,466 70.6% April 2018 Net Lease Kirbyville, MO 1,156 100.0% April 2018 Net Lease Gladwin, MI 1,171 100.0% April 2018 Net Lease Foley, MN 1,176 100.0% April 2018 Net Lease Moscow Mills, MO 1,237 100.0% April 2018 Net Lease Wonder Lake, IL 1,255 100.0% May 2018 Diversified(3) Isla Vista, CA 85,087 75.0% Total real estate acquisitions $ 115,548 (1) Properties were consolidated as of acquisition date. (2) Joint venture partner contributed $2.9 million to the partnership. (3) Joint venture partner contributed $4.6 million to the partnership. The purchase prices were allocated to the asset acquisitions during the nine months ended September 30, 2018 , as follows ($ in thousands): Purchase Price Allocation Land $ 40,019 Building 73,794 Intangibles 2,065 Below Market Lease Intangibles (330 ) Total purchase price $ 115,548 The weighted average amortization period for intangible assets acquired during the nine months ended September 30, 2018 was 18.5 years. The Company recorded $2.0 million and $3.4 million revenues from its 2018 acquisitions for the three and nine months ended September 30, 2018 , respectively. The Company recorded $0.7 million and $1.5 million in earnings (losses) from its 2018 acquisitions for the three and nine months ended September 30, 2018 , respectively, which is included in its consolidated statements of income. Sales The Company sold the following properties during the nine months ended September 30, 2019 ($ in thousands): Sales Date Type Primary Location(s) Net Sales Proceeds Net Book Value Realized Gain/(Loss) Properties Units Sold Units Remaining N/A Condominium Las Vegas, NV $ — $ — $ — — — 1 Various Condominium Miami, FL 4,195 3,796 399 — 14 8 April 2019 Diversified Wayne, NJ 1,729 4,799 (3,070 ) 1 — — May 2019 Diversified Grand Rapids, MI 10,019 8,254 1,765 1 — — August 2019 Diversified Grand Rapids, MI 6,970 4,920 2,050 1 — — Totals $ 22,913 $ 21,769 $ 1,144 The Company sold the following properties during the nine months ended September 30, 2018 ($ in thousands): Sales Date Type Primary Location(s) Net Sales Proceeds Net Book Value Realized Gain/(Loss) Properties Units Sold Units Remaining Various Condominium Las Vegas, NV $ 6,228 $ 3,116 $ 3,112 — 8 5 Various Condominium Miami, FL 4,844 3,987 857 — 18 30 March 2018 Diversified El Monte, CA 71,807 52,610 19,197 (1) 1 — — March 2018 Diversified Richmond, VA 20,966 11,370 9,596 (2) 1 — — September 2018 Diversified St. Paul, MN 109,275 47,627 61,648 (3) 4 — — Totals $ 213,120 $ 118,710 $ 94,410 (1) This property had a third party investor. The third party investor has been allocated $7.0 million of the realized gain, which is included in net (income) loss attributable to noncontrolling interest in consolidated joint ventures, for the nine months ended September 30, 2018 , on the consolidated statements of income. (2) This property had a third party investor. The third party investor has been allocated $0.4 million of the realized gain, which is included in net (income) loss attributable to noncontrolling interest in consolidated joint ventures, for the nine months ended September 30, 2018 , on the consolidated statements of income. (3) This property had a third party investor. The third party investor has been allocated $7.9 million of the realized gain, which is included in net (income) loss attributable to noncontrolling interest in consolidated joint ventures, for the nine months ended September 30, 2018 , on the consolidated statements of income. |
INVESTMENT IN AND ADVANCES TO U
INVESTMENT IN AND ADVANCES TO UNCONSOLIDATED JOINT VENTURES | 9 Months Ended |
Sep. 30, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
INVESTMENT IN AND ADVANCES TO UNCONSOLIDATED JOINT VENTURES | 6. INVESTMENT IN AND ADVANCES TO UNCONSOLIDATED JOINT VENTURES The following is a summary of the Company’s investments in and advances to unconsolidated joint ventures, which we account for using the equity method, as of September 30, 2019 and December 31, 2018 ($ in thousands): Entity September 30, 2019 December 31, 2018 Grace Lake JV, LLC $ 3,799 $ 5,316 24 Second Avenue Holdings LLC 47,620 35,038 Investment in unconsolidated joint ventures $ 51,419 $ 40,354 The following is a summary of the Company’s allocated earnings (losses) based on its ownership interests from investment in unconsolidated joint ventures for the three and nine months ended September 30, 2019 and 2018 ($ in thousands): Three Months Ended September 30, Nine Months Ended September 30, Entity 2019 2018 2019 2018 Grace Lake JV, LLC $ 517 $ 605 $ 1,549 $ 1,138 24 Second Avenue Holdings LLC 577 (204 ) 2,068 (672 ) Earnings (loss) from investment in unconsolidated joint ventures $ 1,094 $ 401 $ 3,617 $ 466 Grace Lake JV, LLC In connection with the origination of a loan in April 2012, the Company received a 25% equity interest 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 19% limited liability company membership interest in Grace Lake JV, LLC (“Grace Lake LLC”), 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 is not legally required to provide any future funding to Grace Lake JV. The Company accounts for its interest in Grace Lake JV using the equity method of accounting, as it has a 19% investment, compared to the 81% investment of its operating partner and does not control the entity. The Company’s investment in Grace Lake LLC is an unconsolidated joint venture, which is a VIE for which the Company is not the primary beneficiary. This joint venture was deemed to be a VIE primarily based on the fact there are disproportionate voting and economic rights within the joint venture. The Company determined that it was not the primary beneficiary of this VIE based on the fact that the Company has a passive investment and no control of this entity and therefore does not have controlling financial interests in this VIE. The Company’s maximum exposure to loss is limited to its investment in the VIE. The Company has not provided financial support to this VIE that it was not previously contractually required to provide. During the nine months ended September 30, 2019 , the Company received $3.1 million of distributions from its investment in Grace Lake JV, LLC. During the nine months ended September 30, 2018 , the Company received $1.3 million of distributions from its investment in Grace Lake JV, LLC. 24 Second Avenue Holdings LLC On August 7, 2015 , the Company entered into a joint venture, 24 Second Avenue Holdings LLC (“24 Second Avenue”), with an operating partner (the “Operating Partner”) to invest in a ground-up residential/retail condominium development and construction project located at 24 Second Avenue, New York, NY. The Company accounted for its interest in 24 Second Avenue using the equity method of accounting as its joint venture partner was the managing member of 24 Second Avenue and had substantive management rights. During the three months ended March 31, 2019, the Company converted its existing $35.0 million common equity interest into a $35.0 million priority preferred equity position. The Company also provided $50.4 million in first mortgage financing in order to refinance the existing $48.1 million first mortgage construction loan which was made by another lending institution. In addition to the new $50.4 million first mortgage loan, the Company also funded a $6.5 million mezzanine loan for use in completing the project. The Operating Partner must fully fund any and all additional capital for necessary expenses. Due to the Company’s non-controlling equity interest in 24 Second Avenue, the Company accounts for the new loans as additional investments in the joint venture. During the three and nine months ended September 30, 2019 , the Company recorded $0.6 million and $2.1 million , respectively, in income (expenses), each of which is recorded in earnings (loss) from investment in unconsolidated joint ventures in the consolidated statements of income. During the three and nine months ended September 30, 2018 , the Company recorded $(0.2) million and $(0.7) million , respectively, in income (expenses), each of which is recorded in earnings (loss) from investment in unconsolidated joint ventures in the consolidated statements of income. During 2018, the Company capitalized interest related to the cost of its investment in 24 Second Avenue, as 24 Second Avenue had activities in progress necessary to construct and ultimately sell condominium units. During the nine months ended September 30, 2019 , the Company capitalized $0.1 million of interest expense, using a weighted average interest rate. During the three and nine months ended September 30, 2018 , the Company recorded $0.4 million and $1.1 million , respectively, of interest expense, using a weighted average interest rate. The capitalized interest expense was recorded in investment in unconsolidated joint ventures in the consolidated balance sheets. As a result of the transactions described above, during the three months ended March 31, 2019, the Company no longer capitalizes interest related to this investment, and income generated from the new loans is accounted for as earnings from investment in unconsolidated joint ventures. As of December 31, 2018, 24 Second Avenue had $46.7 million of loans payable to a third party lender. 24 Second Avenue consists of 30 residential condominium units and one commercial condominium unit. 24 Second Avenue started closing on the existing sales contracts during the quarter ended March 31, 2019, upon receipt of New York City Building Department approvals and a temporary certificate of occupancy for a portion of the project. As of September 30, 2019 , 24 Second Avenue sold 17 residential condominium units for $47.3 million in total gross sale proceeds and one residential condominium unit was under contract for sale for $1.2 million in gross sales proceeds. As of September 30, 2019 , 24 Second Avenue is holding a 15% deposit on the sales contract. As of September 30, 2019 , the Company had no additional remaining capital commitment to 24 Second Avenue. The Company’s investment in 24 Second Avenue is an unconsolidated joint venture, which is a VIE for which the Company is not the primary beneficiary. This joint venture was deemed to be a VIE primarily based on (i) the fact that the total equity investment at risk (inclusive of the additional financing the Company provided through the first mortgage and mezzanine loans) is sufficient to permit the entities to finance activities without additional subordinated financial support provided by any parties, including equity holders; and (ii) the voting and economic rights are not disproportionate within the joint venture. The Company determined that it was not the primary beneficiary of this VIE because it does not have a controlling financial interest. The Company holds its investment in 24 Second Avenue in a TRS. Combined Summary Financial Information for Unconsolidated Joint Ventures The following is a summary of the combined financial position of the unconsolidated joint ventures in which the Company had investment interests as of September 30, 2019 and December 31, 2018 ($ in thousands): September 30, 2019 December 31, 2018 Total assets $ 123,871 $ 167,837 Total liabilities 80,333 116,667 Partners’/members’ capital $ 43,538 $ 51,170 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 nine months ended September 30, 2019 and 2018 ($ in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Total revenues $ 3,915 $ 4,351 $ 14,945 $ 13,671 Total expenses 4,595 3,415 12,029 9,788 Net income (loss) $ (680 ) $ 936 $ 2,916 $ 3,883 |
DEBT OBLIGATIONS, NET
DEBT OBLIGATIONS, NET | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
DEBT OBLIGATIONS, NET | 7. DEBT OBLIGATIONS, NET The details of the Company’s debt obligations at September 30, 2019 and December 31, 2018 are as follows ($ in thousands): September 30, 2019 Debt Obligations Committed Financing Debt Obligations Outstanding Committed but Unfunded Interest Rate at September 30, 2019(1) Current Term Maturity Remaining Extension Options Eligible Collateral Carrying Amount of Collateral Fair Value of Collateral Committed Loan Repurchase Facility $ 600,000 $ 191,031 $ 408,969 3.78% - 4.28% 2/24/2022 (2) (3) $ 283,517 $ 283,746 Committed Loan Repurchase Facility 350,000 63,996 286,004 4.25% - 4.60% 5/24/2020 (4) (5) 100,354 102,616 Committed Loan Repurchase Facility 300,000 211,350 88,650 4.00% - 4.53% 4/10/2020 (6) (7) 343,448 343,448 Committed Loan Repurchase Facility 300,000 116,043 183,957 3.81% - 4.06% 5/6/2021 (8) (3) 174,001 174,353 Committed Loan Repurchase Facility 100,000 87,174 12,826 4.02% - 4.28% 7/20/2021 (9) (3) 135,373 135,606 Committed Loan Repurchase Facility 100,000 90,927 9,073 4.03% 3/26/2020 (10) (11) 121,899 121,899 Total Committed Loan Repurchase Facilities 1,750,000 760,521 989,479 1,158,592 1,161,668 Committed Securities Repurchase Facility 400,000 85,457 314,543 2.38% - 2.87% 3/4/2021 N/A (12) 103,547 103,547 Uncommitted Securities Repurchase Facility N/A (12) 940,070 N/A (13) 2.45% - 3.78% 10/2019 - 12/2019 N/A (12) 1,047,663 1,047,663 (14) Total Repurchase Facilities 2,150,000 1,786,048 1,304,022 2,309,802 2,312,878 Revolving Credit Facility 266,430 — 266,430 NA 2/11/2020 (15) N/A (16) N/A (16) N/A (16) Mortgage Loan Financing 723,313 723,313 — 4.25% - 6.75% 2020 - 2029(17) N/A (18) 902,656 1,093,952 (19) CLO Debt 117,760 117,760 (20) — 3.40% - 5.62% 2021-2034 N/A (21) 274,149 274,523 Borrowings from the FHLB 1,945,795 1,076,449 869,346 1.47% - 2.95% 2019 - 2024 N/A (22) 1,411,022 1,422,246 (23) Senior Unsecured Notes 1,166,201 1,157,117 (24) — 5.250% - 5.875% 2021 - 2025 N/A N/A (25) N/A (25) N/A (25) Total Debt Obligations, Net $ 6,369,499 $ 4,860,687 $ 2,439,798 $ 4,897,629 $ 5,103,599 (1) September 2019 LIBOR rates are used to calculate interest rates for floating rate debt. (2) Two additional 12 -month periods at Company’s option. No new advances are permitted after the initial maturity date. (3) First mortgage commercial real estate loans and senior and pari passu interests therein. It does not include the real estate collateralizing such loans. (4) One additional 12 -month period at Company’s option. (5) First mortgage commercial real estate loans. It does not include the real estate collateralizing such loans. (6) One additional 364 -day period with Bank’s consent. (7) First mortgage and mezzanine commercial real estate loans and senior and pari passu interests therein. It does not include the real estate collateralizing such loans. (8) One additional 12 -month extension period and two additional 6 -month extension periods at Company’s option. (9) One additional 12 -month extension period at Company’s option. No new advances are permitted after the initial maturity date. (10) The Company may extend periodically with lender’s consent. At no time can the maturity of the facility exceed 364 days from the date of determination. (11) First mortgage, junior and mezzanine commercial real estate loans, and certain senior and/or pari passu interests therein. (12) Commercial real estate securities. It does not include the real estate collateralizing such securities. (13) Represents uncommitted securities repurchase facilities for which there is no committed amount subject to future advances. (14) Includes $2.3 million of restricted securities under the risk retention rules of Dodd-Frank Act. These securities are accounted for as held-to-maturity and recorded at amortized cost basis. (15) Three additional 12 -month periods at Company’s option. (16) The obligations under the Revolving Credit Facility are guaranteed by the Company and certain of its subsidiaries and secured by equity pledges in certain Company subsidiaries. (17) Anticipated repayment dates. (18) Certain of our real estate investments serve as collateral for our mortgage loan financing. (19) Using undepreciated carrying value of commercial real estate to approximate fair value. (20) Presented net of unamortized debt issuance costs of $0.4 million at September 30, 2019 . (21) First mortgage commercial real estate loans and pari passu interests therein. It does not include the real estate collateralizing such loans. (22) First mortgage commercial real estate loans and investment grade commercial real estate securities. It does not include the real estate collateralizing such loans and securities. (23) Includes $9.9 million of restricted securities under the risk retention rules of Dodd-Frank Act. These securities are accounted for as held-to-maturity and recorded at amortized cost basis. (24) Presented net of unamortized debt issuance costs of $9.1 million at September 30, 2019 . (25) The obligations under the senior unsecured notes are guaranteed by the Company and certain of its subsidiaries. December 31, 2018 Debt Obligations Committed Financing Debt Obligations Outstanding Committed but Unfunded Interest Rate at December 31, 2018(1) Current Term Maturity Remaining Extension Options Eligible Collateral Carrying Amount of Collateral Fair Value of Collateral Committed Loan Repurchase Facility $ 600,000 $ 180,597 $ 419,403 4.21% - 4.96% 10/1/2020 (2) (3) $ 262,642 $ 261,602 Committed Loan Repurchase Facility 350,000 63,679 286,321 4.68% - 4.98% 5/24/2019 (4) (5) 87,385 88,762 Committed Loan Repurchase Facility 300,000 120,631 179,369 4.46% - 4.96% 4/7/2019 (6) (7) 204,747 205,219 Committed Loan Repurchase Facility 300,000 79,886 220,114 4.44% - 4.94% 5/6/2021 (8) (3) 117,382 117,366 Committed Loan Repurchase Facility 100,000 52,738 47,262 4.58% - 4.96% 7/20/2021 (9) (3) 72,154 72,154 Committed Loan Repurchase Facility 100,000 — 100,000 NA 12/26/2019 (10) (11) — — Total Committed Loan Repurchase Facilities 1,750,000 497,531 1,252,469 744,310 745,103 Committed Securities Repurchase Facility 400,000 — 400,000 NA 9/30/2019 N/A (12) — — Uncommitted Securities Repurchase Facility N/A (12) 166,154 N/A (13) 2.99% - 4.55% 1/2019 - 3/2019 N/A (12) 187,803 187,803 (14)(15) Total Repurchase Facilities 2,150,000 663,685 1,652,469 932,113 932,906 Revolving Credit Facility 266,430 — 266,430 NA 2/11/2019 (16) N/A (17) N/A (17) N/A (17) Mortgage Loan Financing 743,902 743,902 — 4.25% - 7.00% 2020 - 2028(18) N/A (19) 939,362 1,108,968 (20) CLO Debt 601,543 601,543 (21 ) — 3.34% - 6.06% 2021-2034 N/A (22) 710,502 710,737 Participation Financing - Mortgage Loan Receivable 2,453 2,453 — 17.00% 6/6/2019 N/A (3) 2,453 2,453 Borrowings from the FHLB 1,933,522 1,286,000 647,522 1.18% - 3.01% 2019 - 2024 N/A (23) 1,652,952 1,655,150 (24) Senior Unsecured Notes 1,166,201 1,154,991 (25) — 5.250% - 5.875% 2021 - 2025 N/A N/A (26) N/A (26) N/A (26) Total Debt Obligations $ 6,864,051 $ 4,452,574 $ 2,566,421 $ 4,237,382 $ 4,410,214 (1) December 31, 2018 LIBOR rates are used to calculate interest rates for floating rate debt. (2) Two additional 12 -month periods at Company’s option. No new advances are permitted after the initial maturity date. (3) First mortgage commercial real estate loans and senior and pari passu interests therein. It does not include the real estate collateralizing such loans. (4) Two additional 12 -month periods at Company’s option. (5) First mortgage commercial real estate loans. It does not include the real estate collateralizing such loans. (6) One additional 364 -day periods at Company’s option and one additional 364 -day period with Bank’s consent. (7) First mortgage and mezzanine commercial real estate loans and senior pari passu interests therein. It does not include the real estate collateralizing such loans. (8) One additional 12 -month extension period and two additional 6 -month extension periods at Company’s option. (9) One additional 12 -month extension period at Company’s option. No new advances are permitted after the initial maturity date. (10) The Company may extend periodically with lender’s consent. At no time can the maturity of the facility exceed 364 days from the date of determination. (11) First mortgage, junior and mezzanine commercial real estate loans, and certain senior and/or pari passu interests therein. (12) Commercial real estate securities. It does not include the real estate collateralizing such securities. (13) Represents uncommitted securities repurchase facilities for which there is no committed amount subject to future advances. (14) Includes $3.0 million of restricted securities under the risk retention rules of Dodd-Frank Act. These securities are accounted for as held-to-maturity and recorded at amortized cost basis. (15) Includes $6.0 million of securities purchased in the secondary market of the Company’s October 2017 CLO issuance. These securities are not included in real estate securities but were rather considered a partial retirement of CLO debt. (16) Four additional 12 -month periods at Company’s option. (17) The obligations under the Revolving Credit Facility are guaranteed by the Company and certain of its subsidiaries and secured by equity pledges in certain Company subsidiaries. (18) Anticipated repayment dates. (19) Certain of our real estate investments serve as collateral for our mortgage loan financing. (20) Using undepreciated carrying value of commercial real estate to approximate fair value. (21) Presented net of unamortized debt issuance costs of $2.6 million at December 31, 2018 . (22) First mortgage commercial real estate loans and pari passu interests therein. It does not include the real estate collateralizing such loans. (23) First mortgage commercial real estate loans and investment grade commercial real estate securities. It does not include the real estate collateralizing such loans and securities. (24) Includes $9.7 million of restricted securities under the risk retention rules of Dodd-Frank Act. These securities are accounted for as held-to-maturity and recorded at amortized cost basis. (25) Presented net of unamortized debt issuance costs of $11.2 million at December 31, 2018 . (26) The obligations under the senior unsecured notes are guaranteed by the Company and certain of its subsidiaries. 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 six committed master repurchase agreements, as outlined in the September 30, 2019 table above, totaling $1.8 billion 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 and mezzanine debt. The Company also has a term master repurchase agreement with a major U.S. bank to finance CMBS totaling $400.0 million . The Company’s repurchase facilities include covenants covering net worth requirements, minimum liquidity levels, maximum leverage ratios, and minimum fixed charge coverage ratios. The Company believes it was in compliance with all covenants as of September 30, 2019 and December 31, 2018 . 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 in certain cases 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 January 4, 2018, the Company exercised its option to extend one of its committed loan repurchase facilities with a major banking institution for a term of one year . On April 3, 2018, the Company exercised its option to extend one of its credit facilities with a major banking institution for a term of one year and agreed with such banking institution to decrease the maximum funding capacity under such facility from $450 million to $350 million together with other related modifications, all of which will be memorialized in definitive documentation. On May 7, 2018, the Company executed an amendment of one of its committed loan repurchase facilities with a major banking institution, providing for, among other things, the extension of the maximum term of the facility to May 6, 2023 and increasing the maximum funding capacity to $300.0 million . On July 20, 2018, the Company executed an amendment of one of its committed loan repurchase facilities with a major banking institution, providing for, among other things, the extension of the maximum term of the facility to July 20, 2021 and decreasing the interest rate spreads thereunder by 25 basis points. On December 27, 2018, the Company executed a new $100.0 million committed loan repurchase facility with a major banking institution to finance first mortgage, junior and mezzanine commercial real estate loans, and certain senior and/or pari passu interests therein. The facility has a one-year initial term and the Company may extend periodically with lender’s consent, but at no time can the maturity of the facility exceed 364 days from the date of determination. On February 26, 2019, the Company executed an amendment of one of its committed loan repurchase facilities with a major banking institution, providing for, among other things, the extension of the initial term of the facility to February 24, 2022. The facility has two additional 12 -month extension periods at the Company’s option. No new advances are permitted after the initial maturity date. On March 4, 2019, the Company executed an amendment of its committed securities repurchase facility with a major banking institution, providing for, among other things, the extension of the initial term of the facility to March 4, 2021. On May 1, 2019, the Company amended the pricing side letter related to one of its committed loan repurchase facilities with a major banking institution, providing for, among other things, the extension of the initial term of the facility to March 26, 2020. On May 24, 2019, the Company exercised its option to extend one of its committed loan repurchase facilities with a major banking institution for a term of one year . As of September 30, 2019 , the Company had repurchase agreements with 10 counterparties, with total debt obligations outstanding of $1.8 billion . As of September 30, 2019 , two counterparties, JP Morgan and Wells Fargo , held collateral that exceeded the amounts borrowed under the related repurchase agreements by more than $82.0 million , or 5% of our total equity. As of September 30, 2019 , the weighted average haircut, or the percent of collateral value in excess of the loan amount, under our repurchase agreements was 22.8% . There have been no significant fluctuations in haircuts across asset classes on our repurchase facilities. Revolving Credit Facility The Company’s revolving credit facility (the “Revolving Credit Facility”) provides for an aggregate maximum borrowing amount of $266.4 million , including a $25.0 million 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. On January 15, 2019, the Company extended the maturity date of the Revolving Credit Facility to February 11, 2020 . The Company has additional one -year extension options to extend the final maturity date to February 2023. Interest on the Revolving Credit Facility is one-month LIBOR plus 3.25% 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. Debt Issuance Costs As discussed in Note 2, Significant Accounting Policies in the Annual Report, the Company considers its committed loan master repurchase facilities and Revolving Credit Facility to be revolving debt arrangements. As such, the Company continues to defer and present costs associated with these facilities as an asset, subsequently amortizing those costs ratably over the term of each revolving debt arrangement. As of September 30, 2019 and December 31, 2018 , the amount of unamortized costs relating to such facilities are $6.8 million and $6.3 million , respectively, and are included in other assets in the consolidated balance sheets. 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 75% and 95% of the fair value of collateral. Mortgage Loan Financing These non-recourse debt agreements provide for fixed rate financing at rates, ranging from 4.25% to 6.75% , with anticipated maturity dates between 2020 - 2029 as of September 30, 2019 . These loans have carrying amounts of $723.3 million and $743.9 million , net of unamortized premiums of $5.3 million and $5.8 million as of September 30, 2019 and December 31, 2018 , respectively, representing proceeds received upon financing greater than the contractual amounts due under these agreements. The premiums are being amortized over the remaining life of the respective debt instruments using the effective interest method. The Company recorded $0.5 million and $1.3 million of premium amortization, which decreased interest expense, for the three and nine months ended September 30, 2019 , respectively. The Company recorded $0.3 million and $0.8 million of premium amortization, which decreased interest expense, for the three and nine months ended September 30, 2018 , respectively. The loans are collateralized by real estate and related lease intangibles, net, of $902.7 million and $939.4 million as of September 30, 2019 and December 31, 2018 , respectively. During the nine months ended September 30, 2019 and 2018 , the Company executed nine and eleven term debt agreements, respectively, to finance properties in its real estate portfolio. On February 6, 2019 , the Company paid off $6.6 million of mortgage loan financing, recognizing a loss on extinguishment of debt of $1.1 million . CLO Debt The Company completed CLO issuances in the two transactions described below. As of September 30, 2019 and December 31, 2018 , the Company had a total of $117.8 million and $601.5 million , respectively, of floating rate, non-recourse CLO debt included in debt obligations on its consolidated balance sheets. Unamortized debt issuance costs of $0.4 million and $2.6 million are included in CLO debt as of September 30, 2019 and December 31, 2018 , respectively. As of September 30, 2019 , the CLO debt has interest rates of 3.4% to 5.62% (with a weighted average of 4.97% ). As of September 30, 2019 , collateral for the CLO debt comprised $274.1 million of first mortgage commercial mortgage real estate loans. In October 2019, the Company redeemed all outstanding debt obligations related to the two CLO transactions. On October 17, 2017, a consolidated subsidiary of the Company consummated a securitization of floating-rate commercial mortgage loans through a static CLO structure. Over $456.9 million of balance sheet loans (“Contributed Loans”) were contributed into the CLO. Certain of the Contributed Loans have future funding components that were not contributed to the CLO and that are retained by a consolidated subsidiary of the Company in the form of a participation interest or separate note. However, for a limited period of time, to the extent loans in the CLO are repaid, the CLO may acquire portions of the future fundings from the Company’s consolidated subsidiary. A consolidated subsidiary of the Company retained an approximately 18.5% interest in the CLO by retaining the most subordinate classes of notes issued by the CLO. The Company retains control over major decisions made with respect to the administration of the Contributed Loans and appoints the special servicer under the CLO. The CLO is a VIE and the Company is the primary beneficiary and, therefore, consolidates the VIE - See Note 10 . On December 21, 2017, a subsidiary of the Company consummated a securitization of fixed and floating-rate commercial mortgage loans through a static CLO structure. Over $431.5 million of Contributed Loans were contributed into the CLO. Certain of the Contributed Loans have future funding components that were not contributed to the CLO and that are retained by a consolidated subsidiary of the Company in the form of a participation interest or separate note. However, the CLO may acquire portions of the future fundings from the Company’s consolidated subsidiary, as long as certain requirements are met. A consolidated subsidiary of the Company retained an approximately 25% interest in the CLO by retaining the most subordinate classes of notes issued by the CLO. The Company retains control over major decisions made with respect to the administration of the Contributed Loans and appoints the special servicer under the CLO. The CLO is a VIE and the Company is the primary beneficiary and, therefore, consolidates the VIE - See Note 10 . Participation Financing - Mortgage Loan Receivable During the three months ended March 31, 2017, the Company sold a participating interest in a first mortgage loan receivable to a third party. The sales proceeds of $4.0 million were considered non-recourse secured borrowings and were recognized in debt obligations on the Company’s consolidated balance sheets with $2.5 million outstanding as of December 31, 2018 . There were no non-recourse secured borrowings recognized in debt obligations on the Company’s consolidated balance sheets as of September 30, 2019 , as the loan matured and was repaid during the three months ended June 30, 2019. The Company recorded $0.2 million of interest expense for the nine months ended September 30, 2019 . The Company recorded $0.1 million and $0.4 million of interest expense for the three and nine months ended September 30, 2018 , respectively. Borrowings from the Federal Home Loan Bank (“FHLB”) On July 11, 2012, Tuebor Captive Insurance Company LLC (“Tuebor”), a consolidated subsidiary of the Company, became a member of the FHLB and subsequently drew its first secured funding advances from the FHLB. On December 6, 2017, Tuebor’s advance limit was updated by the FHLB to the lowest of a Set Dollar Limit ( $2.0 billion ), 40% of Tuebor’s total assets or 150% of the Company’s total equity. Beginning April 1, 2020 through December 31, 2020, the Set Dollar Limit will be $1.5 billion . Beginning January 1, 2021 through February 19, 2021, the Set Dollar Limit will be $750.0 million . Tuebor is well-positioned to meet its obligations and pay down its advances in accordance with the scheduled reduction in the Set Dollar Limit, which remains subject to revision by the FHLB or as a result of any future changes in applicable regulations. As of September 30, 2019 , Tuebor had $1.1 billion of borrowings outstanding (with an additional $869.3 million of committed term financing available from the FHLB), with terms of overnight to 5.0 years (with a weighted average of 2.3 years ), interest rates of 1.47% to 2.95% (with a weighted average of 2.50% ), and advance rates of 61.0% to 95.7% of the collateral. As of September 30, 2019 , collateral for the borrowings was comprised of $721.5 million of CMBS and U.S. Agency Securities and $689.5 million of first mortgage commercial real estate loans. As of December 31, 2018 , Tuebor had $1.3 billion of borrowings outstanding (with an additional $647.5 million of committed term financing available from the FHLB), with terms of overnight to 5.75 years (with a weighted average of 2.5 years ), interest rates of 1.18% to 3.01% (with a weighted average of 2.55% ), and advance rates of 56.4% to 95.2% of the collateral. As of December 31, 2018 , collateral for the borrowings was comprised of $1.0 billion of CMBS and U.S. Agency Securities and $637.2 million 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 $1.9 billion of the member’s capital was restricted from transfer via dividend to Tuebor’s parent without prior approval of state insurance regulators at September 30, 2019 . To facilitate intercompany cash funding of operations and investments, Tuebor and its parent maintain regulator-approved intercompany borrowing/lending agreements. Effective February 19, 2016, the Federal Housing Finance Agency (the “FHFA’’), regulator of the FHLB, adopted a final rule amending its regulation regarding the eligibility of captive insurance companies for FHLB membership. According to the final rule, Ladder’s captive insurance company subsidiary, Tuebor may remain as a member of the FHLB through February 19, 2021 (the “Transition Period”). During the Transition Period, Tuebor is eligible to continue to draw new additional advances, extend the maturities of existing advances, and pay off outstanding advances on the same terms as non-captive insurance company FHLB members with the following two exceptions: 1. New advances (including any existing advances that are extended during the Transition Period) will have maturity dates on or before February 19, 2021; and 2. The FHLB will make new advances to Tuebor subject to a requirement that Tuebor’s total outstanding advances do not exceed 40% of Tuebor’s total assets. Tuebor has executed new advances since the effective date of the new rule in the ordinary course of business. FHLB advances amounted to 22.1% of the Company’s outstanding debt obligations as of September 30, 2019 . The Company does not anticipate that the FHFA’s final regulation will materially impact its operations as it will continue to access FHLB advances during the five-year Transition Period. There is no assurance that the FHFA or the FHLB will not take actions that could adversely impact Tuebor’s membership in the FHLB and continuing access to new or existing advances prior to February 19, 2021. Senior Unsecured Notes LCFH issued the 2025 Notes, the 2022 Notes, the 2021 Notes and the 2017 Notes (each as defined below, and 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 Series TRS of LCFH with no assets, operations, revenues or cash flows other than those related to the issuance, administration and repayment of the Notes. The Company and certain subsidiaries of LCFH currently guarantee the obligations under the Notes and the indenture. The Company is the general partner of LCFH and, through LCFH and its subsidiaries, operates the Ladder Capital business. As of September 30, 2019 , the Company has a 89.8% economic and voting interest in LCFH and controls the management of LCFH as a result of its ability to appoint board members. Accordingly, the Company 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, the Company, through certain subsidiaries which are treated as TRSs, is indirectly subject to U.S. federal, state and local income taxes. Other than the noncontrolling interest in the Operating Partnership and federal, state and local income taxes, there are no material differences between the Company’s consolidated financial statements and LCFH’s consolidated financial statements. The Company believes it was in compliance with all covenants of the Notes as of September 30, 2019 and December 31, 2018 . Unamortized debt issuance costs of $9.1 million and $11.2 million are included in senior unsecured notes as of September 30, 2019 and December 31, 2018 , respectively, in accordance with GAAP. 2021 Notes On August 1, 2014, LCFH issued $300.0 million in aggregate principal amount of 5.875% senior notes due August 1, 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. At any time after August 1, 2017, the Company may redeem the 2021 Notes in whole or in part, upon not less than 30 nor more than 60 days’ notice, at redemption prices defined in the indenture governing the 2021 Notes, plus accrued and unpaid interest, if any, to the redemption date. On February 24, 2016, the board of directors authorized the Company to make up to $100.0 million in repurchases of the 2021 Notes from time to time without further approval. On May 2, 2018, the board of the directors authorized the Company to repurchase any or all of the 2021 Notes from time to time without further approval. During the year ended December 31, 2016, the Company retired $33.8 million of principal of the 2021 Notes for a repurchase price of $28.2 million , recognizing a $5.1 million net gain on extinguishment of debt after recognizing $(0.4) million of unamortized debt issuance costs associated with the retired debt. As of September 30, 2019 , the remaining $266.2 million in aggregate principal amount of the 2021 Notes is due August 1, 2021. 2022 Notes On March 16, 2017, LCFH issued $500.0 million in aggregate principal amount of 5.250% senior notes due March 15, 2022 (the “2022 Notes”). The 2022 Notes require interest payments semi-annually in cash in arrears on March 15 and September 15 of each year, beginning on September 15, 2017. The 2022 Notes will mature on March 15, 2022. The 2022 Notes are unsecured and are subject to an unencumbered assets to unsecured debt covenant. At any time on or after September 15, 2021, the 2022 Notes are redeemable at the option of the Company, in whole or in part, upon not less than 15 nor more than 60 days’ notice, without penalty. On May 2, 2018, the board of the directors authorized the Company to repurchase any or all of the 2022 Notes from time to time without further approval. 2025 Notes On September 25, 2017, LCFH issued $400.0 million in aggregate principal amount of 5.250% senior notes due October 1, 2025 (the “2025 Notes”). The 2025 Notes require interest payments semi-annually in cash in arrears on April 1 and October 1 of each year, beginning on April 1, 2018. The 2025 Notes will mature on October 1, 2025. The 2025 Notes are unsecured and are subject to an unencumbered assets to unsecured debt covenant. The Company may redeem the 2025 Notes, in whole, at any time, |
DERIVATIVE INSTRUMENTS
DERIVATIVE INSTRUMENTS | 9 Months Ended |
Sep. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE INSTRUMENTS | 8. DERIVATIVE INSTRUMENTS The Company uses derivative instruments primarily to economically manage the fair value variability of fixed rate assets caused by interest rate fluctuations and overall portfolio market risk. The following is a breakdown of the derivatives outstanding as of September 30, 2019 and December 31, 2018 ($ in thousands): September 30, 2019 Fair Value Remaining Maturity (years) Contract Type Notional Asset(1) Liability(1) Caps 1 Month LIBOR $ 69,571 $ — $ — 0.61 Futures 5-year Swap 49,200 — 20 0.25 10-year Swap 149,500 — 61 0.25 5-year U.S. Treasury Note 2,200 — 1 0.25 Total futures 200,900 — 82 Credit derivatives S&P 500 Put Options 6,000 22 — 0.30 Total credit derivatives 6,000 22 — Total derivatives $ 276,471 $ 22 $ 82 (1) Shown as derivative instruments, at fair value, in the accompanying consolidated balance sheets. December 31, 2018 Fair Value Remaining Maturity (years) Contract Type Notional Asset(1) Liability(1) Caps 1MO LIBOR $ 69,571 $ — $ — 1.35 Futures 5-year Swap $ 274,900 $ — $ 526 0.25 10-year Swap 227,700 — 436 0.25 5-year U.S. Treasury Note 6,800 — 13 0.25 Total futures 509,400 — 975 Total derivatives $ 578,971 $ — $ 975 (1) Shown as derivative instruments, at fair value, in the accompanying 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 consolidated statements of operations for the three and nine months ended September 30, 2019 and 2018 ($ in thousands): Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 Unrealized Gain/(Loss) Realized Gain/(Loss) Net Result from Derivative Transactions Unrealized Gain/(Loss) Realized Gain/(Loss) Net Result from Derivative Transactions Contract Type Futures $ (618 ) $ (8,868 ) $ (9,486 ) $ 892 $ (36,761 ) $ (35,869 ) Credit Derivatives (3 ) 24 21 (3 ) (84 ) (87 ) Total $ (621 ) $ (8,844 ) $ (9,465 ) $ 889 $ (36,845 ) $ (35,956 ) Three Months Ended September 30, 2018 Nine Months Ended September 30, 2018 Unrealized Gain/(Loss) Realized Gain/(Loss) Net Result from Derivative Transactions Unrealized Gain/(Loss) Realized Gain/(Loss) Net Result from Derivative Transactions Contract Type Futures $ (940 ) $ 8,099 $ 7,159 $ (52 ) $ 28,985 $ 28,933 Swaps — — — 1,403 (848 ) 555 Credit Derivatives (44 ) — (44 ) 5 (337 ) (332 ) Total $ (984 ) $ 8,099 $ 7,115 $ 1,356 $ 27,800 $ 29,156 The Company’s counterparties held $4.2 million and $5.0 million of cash margin as collateral for derivatives as of September 30, 2019 and December 31, 2018 , respectively, which is included in restricted cash in the consolidated balance sheets. Futures Collateral posted with our futures counterparties is segregated in the Company’s books and records. Interest rate futures are centrally cleared by the Chicago Mercantile Exchange (“CME”) through a Futures Commission Merchant. Interest rate futures that are governed by an ISDA agreement provide for bilateral collateral pledging based on the counterparties’ market value. The counterparties have the right to re-pledge the collateral posted but have the obligation to return the pledged collateral, or substantially the same collateral, if agreed to by us, as the market value of the interest rate futures change. The Company is required to post initial margin and daily variation margin for our interest rate futures that are centrally cleared by CME. CME determines the fair value of our centrally cleared futures, including daily variation margin. Effective January 3, 2017, CME amended their rulebooks to legally characterize daily variation margin payments for centrally cleared interest rate futures as settlement rather than collateral. As a result of this rule change, variation margin pledged on the Company’s centrally cleared interest rate futures is settled against the realized results of these futures. 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 September 30, 2019 and December 31, 2018 , the Company was in compliance with these requirements and not in default on its indebtedness. As of September 30, 2019 and December 31, 2018 , there was no |
OFFSETTING ASSETS AND LIABILITI
OFFSETTING ASSETS AND LIABILITIES | 9 Months Ended |
Sep. 30, 2019 | |
Offsetting [Abstract] | |
OFFSETTING ASSETS AND LIABILITIES | 9. OFFSETTING ASSETS AND LIABILITIES The following tables present both gross information and net information about derivatives and other instruments eligible for offset in the statement of financial position as of September 30, 2019 and December 31, 2018 . The Company’s accounting policy is to record derivative asset and liability positions on a gross basis, therefore, the following tables present 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 of the amounts disclosed in the following tables as the following only disclose amounts eligible to be offset to the extent of the recorded gross derivative positions. As of September 30, 2019 Offsetting of Financial Assets and Derivative Assets ($ in thousands) Description Gross amounts of recognized assets Gross amounts offset in the balance sheet Net amounts of assets presented in the balance sheet Gross amounts not offset in the balance sheet Net amount Financial instruments Cash collateral received/(posted)(1) Derivatives $ 22 $ — $ 22 $ — $ — $ 22 Total $ 22 $ — $ 22 $ — $ — $ 22 (1) Included in restricted cash on consolidated balance sheets. As of September 30, 2019 Offsetting of Financial Liabilities and Derivative Liabilities ($ in thousands) Description Gross amounts of recognized liabilities Gross amounts offset in the balance sheet Net amounts of liabilities presented in the balance sheet Gross amounts not offset in the balance sheet Net amount Financial instruments collateral Cash collateral posted/(received)(1) Derivatives $ 82 $ — $ 82 $ — $ 82 $ — Repurchase agreements $ 1,786,048 $ — $ 1,786,048 $ 1,786,048 $ — $ — Total $ 1,786,130 $ — $ 1,786,130 $ 1,786,048 $ 82 $ — (1) Included in restricted cash on consolidated balance sheets. As of December 31, 2018 Offsetting of Financial Liabilities and Derivative Liabilities ($ in thousands) Description Gross amounts of recognized liabilities Gross amounts offset in the balance sheet Net amounts of liabilities presented in the balance sheet Gross amounts not offset in the balance sheet Net amount Financial instruments collateral Cash collateral posted/(received) Derivatives $ 975 $ — $ 975 $ — $ 975 $ — Repurchase agreements 663,685 — 663,685 663,685 — — Total $ 664,660 $ — $ 664,660 $ 663,685 $ 975 $ — (1) Included in restricted cash on 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 September 30, 2019 and December 31, 2018 are disclosed in the tables above. The Company does not present its derivative and repurchase agreements net on the consolidated financial statements as it has elected gross presentation. |
CONSOLIDATED VARIABLE INTEREST
CONSOLIDATED VARIABLE INTEREST ENTITIES | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
CONSOLIDATED VARIABLE INTEREST ENTITIES | 10. CONSOLIDATED VARIABLE INTEREST ENTITIES FASB 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 the entity that has both of the following characteristics: (1) the power to direct the activities that, when taken together, most significantly impact the VIE’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. The Operating Partnership is a VIE and as such, substantially all of the consolidated balance sheet is a consolidated VIE. In addition, the Operating Partnership consolidates two collateralized loan obligation (“CLO”) VIEs with the following aggregate balance sheets ($ in thousands): September 30, 2019 December 31, 2018 Notes 3 & 7 Notes 3 & 7 Mortgage loan receivables held for investment, net, at amortized cost $ 274,149 $ 710,502 Accrued interest receivable 1,363 3,921 Other assets(1) — 81,390 Total assets $ 275,512 $ 795,813 Senior and unsecured debt obligations $ 117,760 $ 607,440 Accrued expenses 306 1,471 Other liabilities 2 2 Total liabilities 118,068 608,913 Net equity in VIEs (eliminated in consolidation) 157,444 186,900 Total equity 157,444 186,900 Total liabilities and equity $ 275,512 $ 795,813 (1) |
EQUITY STRUCTURE AND ACCOUNTS
EQUITY STRUCTURE AND ACCOUNTS | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
EQUITY STRUCTURE AND ACCOUNTS | 11. EQUITY STRUCTURE AND ACCOUNTS 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, receive one share of the Company’s Class A common stock in exchange for (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, subject to equitable adjustments for stock splits, stock dividends and reclassifications. During the nine months ended September 30, 2019 , 1,140,000 Series REIT LP Units and 1,140,000 Series TRS LP Units were collectively exchanged for 1,140,000 shares of Class A common stock and 1,140,000 shares of Class B common stock were canceled. We received no other consideration in connection with these exchanges. During the nine months ended September 30, 2018 , 4,549,832 Series REIT LP Units and 4,549,832 Series TRS LP Units were collectively exchanged for 4,549,832 shares of Class A common stock; and 4,549,832 shares of Class B common stock were canceled. We received no other consideration in connection with these exchanges. Stock Repurchases On October 30, 2014, the board of directors authorized the Company to repurchase up to $50.0 million of the Company’s Class A common stock from time to time without further approval. Stock repurchases by the Company are generally made for cash in open market transactions at prevailing market prices but may also be made in privately negotiated transactions or otherwise. The timing and amount of purchases are determined based upon prevailing market conditions, our liquidity requirements, contractual restrictions and other factors. During the nine months ended September 30, 2019 , the Company repurchased 40,065 shares of Class A common stock. As of September 30, 2019 , the Company has a remaining amount available for repurchase of $41.1 million , which represents 2.2% in the aggregate of its outstanding Class A common stock, based on the closing price of $17.27 per share on such date. The following table is a summary of the Company’s repurchase activity of its Class A common stock during the nine months ended September 30, 2019 and 2018 ($ in thousands): Shares Amount(1) Authorizations remaining as of December 31, 2018 $ 41,769 Additional authorizations — Repurchases paid 40,065 (637 ) Repurchases unsettled — Authorizations remaining as of September 30, 2019 $ 41,132 (1) Amount excludes commissions paid associated with share repurchases. Shares Amount(1) Authorizations remaining as of December 31, 2017 $ 41,769 Additional authorizations — Repurchases paid — — Repurchases unsettled — Authorizations remaining as of September 30, 2018 $ 41,769 (1) Amount excludes commissions paid associated with share repurchases. Dividends In order for the Company to maintain its qualification as a REIT under the Code, it must annually distribute at least 90% of its taxable income. The Company has paid and in the future intends to declare regular quarterly distributions to its shareholders in an amount approximating the REIT’s net taxable income. Consistent with IRS guidance, the Company may, subject to a cash/stock election by its shareholders, pay a portion of its dividends in stock, to provide for meaningful capital retention; however, the REIT distribution requirements limit its ability to retain earnings and thereby replenish or increase capital for operations. The timing and amount of future distributions is based on a number of factors, including, among other things, the Company’s future operations and earnings, capital requirements and surplus, general financial condition and contractual restrictions. All dividend declarations are subject to the approval of the Company’s board of directors. Generally, the Company expects its distributions to be taxable as ordinary dividends to its shareholders, whether paid in cash or a combination of cash and common stock, and not as a tax-free return of capital or a capital gain (although for taxable years beginning after December 31, 2017 and before January 1, 2026, generally stockholders that are individuals, trusts or estates may deduct 20% of the aggregate amount of ordinary dividends distributed by us, subject to certain limitations). The Company believes that its significant capital resources and access to financing will provide the financial flexibility at levels sufficient to meet current and anticipated capital requirements, including funding new investment opportunities, paying distributions to its shareholders and servicing our debt obligations. The following table presents dividends declared (on a per share basis) of Class A common stock for the nine months ended September 30, 2019 and 2018 : Declaration Date Dividend per Share February 27, 2019 $ 0.340 May 30, 2019 0.340 August 22, 2019 0.340 Total $ 1.020 February 27, 2018 $ 0.315 May 30, 2018 0.325 September 5, 2018 0.325 Total $ 0.965 Changes in Accumulated Other Comprehensive Income The following table presents changes in accumulated other comprehensive income related to the cumulative difference between the fair market value and the amortized cost basis of securities classified as available for sale for the nine months ended September 30, 2019 and 2018 ($ in thousands): Accumulated Other Comprehensive Income (Loss) Accumulated Other Comprehensive Income (Loss) of Noncontrolling Interests Total Accumulated Other Comprehensive Income (Loss) December 31, 2018 $ (4,649 ) $ (588 ) $ (5,237 ) Other comprehensive income (loss) 14,935 1,840 16,775 Exchange of noncontrolling interest for common stock 64 (64 ) — Rebalancing of ownership percentage between Company and Operating Partnership 17 (17 ) — September 30, 2019 $ 10,367 $ 1,171 $ 11,538 Accumulated Other Comprehensive Income (Loss) Accumulated Other Comprehensive Income (Loss) of Noncontrolling Interests Total Accumulated Other Comprehensive Income (Loss) December 31, 2017 $ (212 ) $ 116 $ (96 ) Other comprehensive income (loss) (8,230 ) (1,428 ) (9,658 ) Exchange of noncontrolling interest for common stock (167 ) 167 — Rebalancing of ownership percentage between Company and Operating Partnership 27 (27 ) — September 30, 2018 $ (8,582 ) $ (1,172 ) $ (9,754 ) |
NONCONTROLLING INTERESTS
NONCONTROLLING INTERESTS | 9 Months Ended |
Sep. 30, 2019 | |
Noncontrolling Interest [Abstract] | |
NONCONTROLLING INTERESTS | 12. NONCONTROLLING INTERESTS There are two main types of noncontrolling interest reflected in the Company’s 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 consolidated statements of changes in equity. 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 Continuing LCFH Limited Partners exchanges 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 nine months ended September 30, 2019 , the Company has increased noncontrolling interests in the Operating Partnership and decreased additional paid-in capital and accumulated other comprehensive income in the Company’s shareholders’ equity by $0.1 million as of September 30, 2019 . Distributions to Noncontrolling Interest in the Operating Partnership Notwithstanding the foregoing, subject to any restrictions in applicable debt financing agreements and available liquidity as determined by the board of directors of each of Series REIT of LCFH and Series TRS of LCFH, each Series must use commercially reasonable efforts to make quarterly distributions to each of its partners (including the Company) at least equal to such 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 U.S. federal taxable income (or alternative minimum taxable income, if higher) allocated by such Series to such partner in respect of the Series REIT LP Units and Series TRS LP Units held by such partner and (y) the highest marginal blended U.S. federal, state and local income tax rate (or alternative minimum taxable rate, as applicable) applicable to an individual residing in New York, NY, taking into account, for U.S. federal income tax purposes, the deductibility of state and local taxes; provided that Series TRS of LCFH may take into account, in determining the amount of tax distributions to holders of Series TRS LP Units, the amount of any distributions each such holder received from Series REIT of LCFH in excess of tax distributions. In addition, to the extent the Company requires an additional distribution from the Series of LCFH in excess of its quarterly tax distribution in order to pay its quarterly cash dividend, the Series of LCFH will be required to make a corresponding distribution of cash to each of their partners (other than the Company) on a pro-rata basis. 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 of LCFH upon liquidation of the Operating Partnership’s assets. Noncontrolling Interest in Consolidated Joint Ventures As of September 30, 2019 , the Company consolidates seven ventures in which there are other noncontrolling investors, which own between 1.2% - 29.4% of such ventures. These ventures hold investments in a 40 property student housing portfolio, 20 office buildings, one industrial property, one condominium complex and one apartment complex. The Company makes distributions and allocates income from these ventures to the noncontrolling interests in accordance with the terms of the respective governing agreements. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | 13. EARNINGS PER SHARE The Company’s net income (loss) and weighted average shares outstanding for the three and nine months ended September 30, 2019 and 2018 consist of the following: Three Months Ended September 30, Nine Months Ended September 30, ($ in thousands except share amounts) 2019 2018 2019 2018 Basic Net income (loss) available for Class A common shareholders $ 27,576 $ 66,630 $ 81,996 $ 155,911 Diluted Net income (loss) available for Class A common shareholders $ 27,576 $ 74,038 $ 81,996 $ 177,875 Weighted average shares outstanding Basic 106,004,152 96,935,986 105,264,752 96,317,513 Diluted 106,603,713 110,650,253 106,232,581 110,482,991 The calculation of basic and diluted net income (loss) per share amounts for the three and nine months ended September 30, 2019 and 2018 are described and presented below. Basic Net Income (Loss) per Share Numerator: utilizes net income (loss) available for Class A common shareholders for the three and nine months ended September 30, 2019 and 2018 , respectively. Denominator: utilizes the weighted average shares of Class A common stock for the three and nine months ended September 30, 2019 and 2018 , respectively. Diluted Net Income (Loss) per Share Numerator: utilizes net income (loss) available for Class A common shareholders for the three and nine months ended September 30, 2019 and 2018 , respectively, for the basic net income (loss) per share calculation described above, adding net income (loss) 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 (benefit) for the described net income (loss) add-back. Denominator: utilizes the weighted average number of shares of Class A common stock for the three and nine months ended September 30, 2019 and 2018 , respectively, for the basic net income (loss) 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. Three Months Ended September 30, Nine Months Ended September 30, (In thousands except share amounts) 2019 2018 2019 2018 Basic Net Income (Loss) Per Share of Class A Common Stock Numerator: Net income (loss) attributable to Class A common shareholders $ 27,576 $ 66,630 $ 81,996 $ 155,911 Denominator: Weighted average number of shares of Class A common stock outstanding 106,004,152 96,935,986 105,264,752 96,317,513 Basic net income (loss) per share of Class A common stock $ 0.26 $ 0.69 $ 0.78 $ 1.62 Diluted Net Income (Loss) Per Share of Class A Common Stock Numerator: Net income (loss) attributable to Class A common shareholders $ 27,576 $ 66,630 $ 81,996 $ 155,911 Add (deduct) - dilutive effect of: Amounts attributable to operating partnership’s share of Ladder Capital Corp net income (loss) — 8,991 — 22,786 Additional corporate tax (expense) benefit — (1,583 ) — (822 ) Diluted net income (loss) attributable to Class A common shareholders 27,576 74,038 81,996 177,875 Denominator: Basic weighted average number of shares of Class A common stock outstanding 106,004,152 96,935,986 105,264,752 96,317,513 Add - dilutive effect of: Shares issuable relating to converted Class B common shareholders — 13,202,202 — 13,800,597 Incremental shares of unvested Class A restricted stock 599,561 512,065 967,829 364,881 Diluted weighted average number of shares of Class A common stock outstanding 106,603,713 110,650,253 106,232,581 110,482,991 Diluted net income (loss) per share of Class A common stock $ 0.26 $ 0.67 $ 0.77 $ 1.61 (1) For three and nine months ended September 30, 2019 , shares issuable relating to converted Class B common shareholders are excluded from the calculation of diluted EPS as the inclusion of such potential common shares in the calculation would be anti-dilutive. 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 (loss) 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 (loss) per share of Class A common stock. |
STOCK BASED AND OTHER COMPENSAT
STOCK BASED AND OTHER COMPENSATION PLANS | 9 Months Ended |
Sep. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
STOCK BASED AND OTHER COMPENSATION PLANS | 14. STOCK BASED AND OTHER COMPENSATION PLANS The following table summarizes the impact on the consolidated statement of operations of the various stock based compensation plans described in this note ($ in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Stock Based Compensation Expense: Annual Incentive Awards Granted in 2015 with Respect to 2014 Performance $ — $ — $ — $ 172 Annual Incentive Awards Granted in 2016 with Respect to 2015 Performance — 323 131 971 Annual Incentive Awards Granted in 2017 with Respect to 2016 Performance(1) 280 524 955 1,655 Other 2017 Restricted Stock Awards(1) 25 76 102 257 Annual Incentive Awards Granted in 2017 with Respect to 2017 Performance(1) 596 1,122 1,961 3,325 2018 Restricted Stock Awards — 95 32 230 Other 2018 Restricted Stock Awards(1) 11 9 31 12 Annual Incentive Awards Granted in 2019 with Respect to 2018 Performance(1) 2,509 — 14,804 — 2019 Restricted Stock Awards 148 — 297 — Other Employee/Director Awards 6 13 23 45 Total Stock Based Compensation Expense $ 3,575 $ 2,162 $ 18,336 $ 6,667 Phantom Equity Investment Plan $ 343 $ — $ 1,047 $ — Ladder Capital Corp Deferred Compensation Plan $ — $ 601 $ — $ 1,519 Bonus Expense $ 6,533 $ 9,210 $ 21,035 $ 26,772 (1) Includes immediate vesting of retirement eligible employees, including Brian Harris, our Chief Executive Officer. Summary of Restricted Stock and Stock and Shares/Options Nonvested/Outstanding A summary of the grants is presented below: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Number Weighted Per Share Number Weighted Number Weighted Number Weighted Grants - Class A Common Stock (restricted) 23,443 $ 16.58 4,720 $ 15.89 1,569,694 $ 17.54 33,656 $ 14.86 Grants - Class A Common Stock (restricted) dividends — — — — 11,113 16.61 — — Stock Options — — — — 12,073 — — — The table below presents the number of unvested shares and outstanding stock options at September 30, 2019 and changes during 2019 of the Class A Common stock and Stock Options of Ladder Capital Corp granted under the 2014 Omnibus Incentive Plan: Restricted Stock Stock Options Nonvested/Outstanding at December 31, 2018 1,118,194 982,135 Granted 1,580,807 12,073 Exercised — Vested (1,122,107 ) Forfeited (8,702 ) — Expired — Nonvested/Outstanding at September 30, 2019 1,568,192 994,208 Exercisable at September 30, 2019 994,208 At September 30, 2019 there was $14.8 million of total unrecognized compensation cost related to certain share-based compensation awards that is expected to be recognized over a period of up to 34 months , with a weighted-average remaining vesting period of 25.8 months . The table below presents the number of unvested shares and outstanding stock options at September 30, 2018 and changes during 2018 of the Class A Common stock and Stock Options of Ladder Capital Corp granted under the 2014 Omnibus Incentive Plan: Restricted Stock Stock Options Nonvested/Outstanding at December 31, 2017 1,252,365 982,135 Granted 33,656 — Exercised — Vested (138,216 ) Forfeited (26,061 ) — Expired — Nonvested/Outstanding at September 30, 2018 1,121,744 982,135 Exercisable at September 30, 2018 929,701 As of September 30, 2018 there was $8.0 million of total unrecognized compensation cost related to certain share-based compensation awards that is expected to be recognized over a period of up to 34 months , with a weighted-average remaining vesting period of 21.2 months . 2014 Omnibus Incentive Plan In connection with the IPO Transactions, the 2014 Ladder Capital Corp Omnibus 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 its affiliates with additional incentives including grants of stock options, stock appreciation rights, restricted stock, other stock-based awards and other cash-based awards. Annual Incentive Awards Granted in 2017 with Respect to 2016 Performance For 2016 performance, management received stock-based incentive equity (the “Annual Restricted Stock Awards”). On February 18, 2017 , Annual Restricted Stock Awards were granted to Management Grantees with an aggregate value of $10.2 million which represents 736,461 shares of restricted Class A common stock in connection with 2016 compensation. In accordance with the Harris Employment Agreement, Mr. Harris’ annual awards were fully vested at grant. For other Management Grantees, 50% of each restricted stock award granted is subject to time-based vesting criteria, and the remaining 50% of each restricted stock award is subject to attainment of the Performance Target for the applicable years. The time-vesting restricted stock will vest in three installments on each of the first three anniversaries of the date of grant, subject to continued employment on the applicable vesting dates and subject to the applicable Retirement Eligibility Date. The performance-vesting restricted stock will vest in three equal installments upon the compensation committee’s confirmation that 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”) for those years. 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 3 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 (the “Catch-Up Provision”). 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 met the Performance Target for the years ended December 31, 2018 and 2017. The Company has elected to recognize the compensation expense related to the time-based vesting of the Annual Restricted Stock Awards for the entire award on a straight-line basis over the requisite service period for the entire award. As such, the compensation expense related to the February 18, 2017 Annual Restricted Stock Awards to Management Grantees shall be recognized as follows: 1. Compensation expense for stock granted to Brian Harris will be expensed immediately in accordance with the Harris Retirement Eligibility Date. 2. Compensation expense for restricted stock subject to time-based vesting criteria granted to Pamela McCormack will be expensed 1/3 each year, for three years , on an annual basis in advance of the McCormack Retirement Eligibility Date. 3. Compensation expense for restricted stock subject to time-based vesting criteria granted to Michael Mazzei will be expensed 1/3 each year, for three years , on an annual basis. 4. Compensation expense for restricted stock subject to time-based vesting criteria granted to the Management Grantees other than Mr. Harris, Ms. McCormack and Mr. Mazzei will be expensed 1/3 each year, for three years , on an annual basis in advance of the Executive Retirement Eligibility Date. Accruals of compensation cost for an award with a performance condition is 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 a change in control (as defined in the respective award agreements), all restricted stock and option awards will become fully vested, if (1) the Management 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, the Management Grantee’s employment is terminated without cause or due to death or disability or the Management 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 and option awards granted. On February 11, 2017 (the “Harris Retirement Eligibility Date”), all outstanding Annual Restricted Stock Awards, including the time-vesting portion and the performance-vesting portion, and all outstanding Annual Option Awards granted to Mr. Harris became fully vested, and any Annual Restricted Stock Awards and Annual Option Awards granted after the Harris Retirement Eligibility Date will be fully vested at grant. The Executive Retirement Eligibility Date for Pamela McCormack is December 8, 2019 (the “McCormack Retirement Eligibility Date”). For Management Grantees other than Harris and McCormack, the Executive Retirement Eligibility Date is February 11, 2019, when the time-vesting portion of the Annual Restricted Stock Awards and the Annual Option Awards will become fully vested, and the time-vesting portion of any Annual Restricted Stock Awards and Annual Option Awards granted after the Executive Retirement Eligibility Date will be fully vested at grant. Upon the occurrence of the respective Executive Retirement Eligibility Dates for each of the Management Grantees except Mr. Harris, the performance-vesting portion of such Management Grantee’s Annual Restricted Stock Awards will remain outstanding for the performance period and will vest to the extent we meet the Performance Target, including via the Catch-Up Provision described above, regardless of continued employment with our subsidiaries following the Executive Retirement Eligibility Date. Other 2017 Restricted Stock Awards On January 24, 2017 , Management Grantees received a Restricted Stock Award with a grant date fair value of $30,455 , representing 2,191 shares of restricted Class A common stock. These shares represent stock dividends paid on the number of shares subject to the 2016 options (had such shares been outstanding) and vest with the time-vesting 2016 options they are associated with, subject to the Retirement Eligibility Date of the respective member of management. Compensation expense shall be recognized on a straight-line basis over the requisite service period. On February 18, 2017, a new employee of the Company received a Restricted Stock Award with a grant date fair value of $0.4 million , representing 28,881 shares of restricted Class A common stock, which vested in two equal installments on each of the first two anniversaries of the date of grant, subject to continued employment on the applicable vesting dates. Compensation expense was recognized on a straight-line basis over the requisite service period. On February 18, 2017, Management Grantees received cash of $1.0 million and a Stock Award with a grant date fair value of $48,475 , representing 3,500 shares of Class A common stock, intended to represent dividends in type and amount that the 2015 stock option grant to management would have received had such options had dividend equivalent rights since grant. This grant also provides for future dividend equivalents that vest according to the vesting schedule of the 2015 stock option grant. Compensation expense shall be recognized on a straight-line basis over the requisite service period. On February 18, 2017 , certain members of the board of directors each received Annual Restricted Stock Awards with a grant date fair value of $0.2 million , representing 16,245 shares of restricted Class A common stock, which vested in full on the first anniversary of the date of grant, subject to continued service on the board of directors. Compensation expense related to the time-based vesting criteria of the award was recognized on a straight-line basis over the one year vesting period. On February 18, 2017 , Restricted Stock Awards were granted to certain non-management employees (each, a “Non-Management Grantee”) with an aggregate value of $0.6 million which represents 40,000 shares of restricted Class A common stock in connection with 2016 compensation. Fifty percent of each Restricted Stock Award granted is subject to time-based vesting criteria, and the remaining 50% of each Restricted Stock Award is subject to attainment of the Performance Target for the applicable years. The time-vesting restricted stock granted to Non-Management Grantees will vest in three installments on each of the first three anniversaries of June 1, 2017, subject to continued employment on the applicable vesting dates. The performance-vesting restricted stock will vest in three equal installments on June 1 of each of 2018, 2019 and 2020 (subject to the performance target being achieved). The Catch-Up Provision applies to the performance vesting portion of this award. The Company has elected to recognize the compensation expense related to the time-based vesting criteria of these Restricted Stock Awards for the entire award on a straight-line basis over the requisite service period. As such, the compensation expense related to the February 18, 2017 Restricted Stock Awards to Non-Management Grantees for time-based vesting shall be recognized 1/3 for the period February 18, 2017 through June 1, 2018, 1/3 for the period June 2, 2018 through June 1, 2019 and 1/3 for the period June 2, 2019 through June 1, 2020. 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. On March 3, 2017 , a new member of the board of directors received a Restricted Stock Award with a grant date fair value of $0.1 million , representing 5,130 shares of restricted Class A common stock, which was scheduled to vest in three equal installments on each of the first three anniversaries of the date of grant, subject to continued service on the board of directors. Compensation expense for restricted stock subject to time-based vesting criteria granted to the director will be expensed 1/3 each year, for three years on an annual basis following such grant. On June 19, 2017 , Restricted Stock Awards were granted to a Non-Management Grantee with an aggregate value of $0.3 million , which represents 21,307 shares of time-based restricted Class A common stock. One-third of this amount will vest on the first anniversary date of the grant date and 1,775 shares will vest on each of October 1, 2018 , December 31, 2018 , April 1, 2019 , July 1, 2019 , September 30, 2019 , December 31, 2019 and March 31, 2020 . The remaining 1,780 shares of the grant will vest on July 1, 2020 , subject to the Non-Management Grantee’s continued employment with the Company. The Company has elected to recognize the compensation expense related to the time-based vesting criteria of this Restricted Stock Award for the entire award on a straight-line basis over the requisite service period. In connection with Mr. Mazzei’s retirement as President, Ladder Capital Finance LLC, a subsidiary of Ladder, and Mr. Mazzei entered into a separation agreement, dated June 22, 2017 (the “Separation Agreement”). Pursuant to the Separation Agreement, Mr. Mazzei was appointed as a Class III director of Ladder and, subject to certain exceptions, Mr. Mazzei’s unvested stock and stock options will continue to vest as they would have had he continued to be employed with Ladder as long as he continues to serve on the Board of Directors. Such unvested stock and stock options will not be subject to the original retirement eligibility date provided for in his employment agreement. On June 22, 2017 , in connection with his appointment to the board of directors, Mr. Mazzei received a Restricted Stock Award with a grant date fair value of $0.1 million , representing 5,346 shares of restricted Class A common stock, which will vest in three equal installments on each of the first three anniversaries of the date of grant, subject to continued service on the board of directors. Compensation expense for restricted stock subject to time-based vesting criteria granted to the director will be expensed 1/3 each year, for three years on an annual basis following such grant. Annual Incentive Awards Granted in 2017 with Respect to 2017 Performance For 2017 performance, management received stock-based incentive equity. On December 21, 2017 , Annual Restricted Stock Awards were granted to Management Grantees with an aggregate value of $10.5 million which represents 768,205 shares of restricted Class A common stock in connection with 2017 compensation. In accordance with the Harris Employment Agreement, Mr. Harris’ annual awards were fully vested at grant. For other Management Grantees, 50% of each restricted stock award granted is subject to time-based vesting criteria, and the remaining 50% of each restricted stock award is subject to attainment of the Performance Target for the applicable years. The time-vesting restricted stock will vest in three installments on each of February 18, 2019, February 18, 2020 and February 18, 2021, subject to continued employment on the applicable vesting dates and subject to the applicable Retirement Eligibility Date. The performance-vesting restricted stock will vest in three equal installments upon the compensation committee’s confirmation that the Company achieves the Performance Target for the years ended December 31, 2018, 2019 and 2020, respectively. The Catch-Up Provision applies to the performance vesting portion of this award. The Company has elected to recognize the compensation expense related to the time-based vesting of the Annual Restricted Stock Awards for the entire award on a straight-line basis over the requisite service period for the entire award. As such, the compensation expense related to the December 21, 2017 Annual Restricted Stock Awards to Management Grantees shall be recognized as follows: 1. Compensation expense for stock granted to Brian Harris will be expensed immediately in accordance with the Harris Retirement Eligibility Date. 2. Compensation expense for restricted stock subject to time-based vesting criteria granted to Pamela McCormack will be expensed 1/3 each year, for three years , on an annual basis in advance of the McCormack Retirement Eligibility Date. 3. Compensation expense for restricted stock subject to time-based vesting criteria granted to the Management Grantees other than Mr. Harris and Ms. McCormack will be expensed 1/3 each year, for three years , on an annual basis in advance of the Executive Retirement Eligibility Date. Compensation cost for an award with a performance condition is 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 a change in control (as defined in the respective award agreements), all restricted stock awards will become fully vested, if (1) the Management 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, the Management Grantee’s employment is terminated without cause or due to death or disability or the Management 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 and option awards granted. On December 21, 2017 , Restricted Stock Awards were granted to certain non-management employees (each, a “Non-Management Grantee”) with an aggregate value of $5.0 million which represents 369,328 shares of restricted Class A common stock in connection with 2017 compensation. Fifty percent of each Restricted Stock Award granted is subject to time-based vesting criteria, and the remaining 50% of each Restricted Stock Award is subject to attainment of the Performance Target for the applicable years. The time-vesting restricted stock granted to Non-Management Grantees will vest in three installments on February 18 of each of 2019, 2020 and 2021 subject to continued employment on the applicable vesting dates. The performance-vesting restricted stock will vest in three equal installments upon the compensation committee’s confirmation that the Company achieves the Performance Target for the years ended December 31, 2018, 2019 and 2020, respectively. The Catch-Up Provision applies to the performance vesting portion of this award. The Company has elected to recognize the compensation expense related to the time-based vesting criteria of these Restricted Stock Awards for the entire award on a straight-line basis over the requisite service period. As such, the compensation expense related to the December 21, 2017 Restricted Stock Awards to Non-Management Grantees shall be recognized 1/3 for the period December 21, 2017 through February 18, 2019, 1/3 for the period February 19, 2019 through February 18, 2020 and 1/3 for the period February 19, 2020 through February 18, 2021. In the event a Non-Management Grantee is terminated by the Company without cause within six months of certain changes in control, all unvested time shares shall vest on the termination date and all unvested performance shares shall remain outstanding and be eligible to vest (and be forfeited) in accordance with the performance conditions; provided that if such change in control is for more than 50% of the shares of the Company, then all restricted stock awards will become fully vested if the Non-Management Grantee continues to be employed through the closing of the change in control. 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. 2018 Restricted Stock Awards On February 18, 2018 , certain members of the board of directors each received Annual Restricted Stock Awards with a grant date fair value of $0.4 million , representing 25,370 shares of restricted Class A common stock, which vested in full on the first anniversary of the date of grant, subject to continued service on the board of directors. Compensation expense related to the time-based vesting criteria of the award was recognized on a straight-line basis over the one year vesting period. Other 2018 Restricted Stock Awards On April 23, 2018 , a new employee of the Company received a Restricted Stock Award with a grant date fair value of $0.1 million , representing 3,566 shares of restricted Class A common stock, which will vest in three equal installments on each of the first three anniversaries of the date of grant, subject to continued employment on the applicable vesting dates. Compensation expense shall be recognized on a straight-line basis over the requisite service period. On July 19, 2018 , a new member of the board of directors received a Restricted Stock Award with a grant date fair value of $0.1 million , representing 4,720 shares of restricted Class A common stock, which will vest in three equal installments on each of the first three anniversaries of the date of grant, subject to continued service on the board of directors. Compensation expense for restricted stock subject to time-based vesting criteria granted to the director will be expensed 1/3 each year, for three years on an annual basis following such grant. Annual Incentive Awards Granted in 2019 with Respect to 2018 Performance For 2018 performance, management received stock-based incentive equity. On February 18, 2019 , Annual Restricted Stock Awards were granted to Management Grantees with an aggregate value of $11.7 million which represents 666,288 shares of restricted Class A common stock in connection with 2018 compensation. In accordance with the Harris Employment Agreement, Mr. Harris’ annual awards were fully vested at grant. Having attained their Executive Retirement Eligibility Date, fifty percent of the annual awards (representing the portion of the Annual Restricted Stock Awards historically subject to time-based vesting) to Messrs. Fox, Harney, and Perelman was fully vested at grant and the remaining fifty percent of each of their Annual Restricted Stock Awards is subject to performance-based criteria. For Ms. McCormack, the vesting of her annual awards is the same as described for the Annual Restricted Stock Awards with respect to 2017 performance. Subject to the McCormack Retirement Eligibility Date, her time-vesting restricted stock will vest in three installments on each of February 18, 2020, February 18, 2021 and February 18, 2022, subject to continued employment on the applicable vesting dates and subject to the applicable Retirement Eligibility Date. The performance-vesting restricted stock for the Management Grantees other than Mr. Harris will vest in three equal installments upon the compensation committee’s confirmation that the Company achieves the Performance Target for the years ended December 31, 2019, 2020 and 2021, respectively. The Catch-Up Provision applies to the performance vesting portion of this award. The Company has elected to recognize the compensation expense related to the time-based vesting of the Annual Restricted Stock Awards for the entire award on a straight-line basis over the requisite service period for the entire award. As such, the compensation expense related to the February 18, 2019 Annual Restricted Stock Awards to Management Grantees shall be recognized as follows: 1. Compensation expense for stock granted to Brian Harris will be expensed immediately in accordance with the Harris Retirement Eligibility Date. 2. Compensation expense for restricted stock subject to time-based vesting criteria granted to Pamela McCormack will be expensed 1/3 each year, for three years , on an annual basis in advance of the McCormack Retirement Eligibility Date. 3. Having attained their Executive Retirement Eligibility Date, compensation expense for restricted stock subject to time-based vesting criteria granted to Messrs. Fox, Harney, and Perelman was fully vested at grant date. Compensation cost for an award with a performance condition is 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 a change in control (as defined in the respective award agreements), all restricted stock awards will become fully vested, if (1) the Management 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, the Management Grantee’s employment is terminated without cause or due to death or disability or the Management 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 and option awards granted. On February 18, 2019 , Restricted Stock Awards were granted to certain non-management employees (each, a “Non-Management Grantee”) with an aggregate value of $14.9 million which represents 849,087 shares of restricted Class A common stock in connection with 2018 compensation. Fifty percent of each Restricted Stock Award granted is subject to time-based vesting criteria, and the remaining 50% of each Restricted Stock Award is subject to attainment of the Performance Target for the applicable years. The time-vesting restricted stock granted to Non-Management Grantees will vest in three installments on February 18 of each of 2020, 2021 and 2022 subject to continued employment on the applicable vesting dates. The performance-vesting restricted stock will vest in three equal installments upon the compensation committee’s confirmation that the Company achieves the Performance Target for the years ended December 31, 2019, 2020 and 2021, respectively. The Catch-Up Provision applies to the performance vesting portion of this award. The Company has elected to recognize the compensation expense related to the time-based vesting criteria of these Restricted Stock Awards for the entire award on a straight-line basis over the requisite service period. As such, the compensation expense related to the February 18, 2019 Restricted Stock Awards to Non-Management Grantees shall be recognized 1/3 for the period February 18, 2019 through February 18, 2020, 1/3 for the period February 19, 2020 through February 18, 2021 and 1/3 for the period February 19, 2021 through February 18, 2022. In the event a Non-Management Grantee is terminated by the Company without cause within six months of certain changes in control, all unvested time shares shall vest on the termination date and all unvested performance shares shall remain outstanding and be eligible to vest (and be forfeited) in accordance with the performance conditions; provided that if such change in control is for more than 50% of the shares of the Company, then all restricted stock awards will become fully vested if the Non-Management Grantee continues to be employed through the closing of the change in control. 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. 2019 Restricted Stock Awards On February 18, 2019 , certain members of the board of directors each received Annual Restricted Stock Awards with a grant date fair value of $0.4 million , representing 25,626 shares of restricted Class A common stock, which will vest in full on the first anniversary of the date of grant, subject to continued service on the board of directors. Compensation expense related to the time-based vesting criteria of the award shall be recognized on a straight-line basis over the one year vesting period. Other 2019 Restricted Stock Awards On January 24, 2019 , Management Grantees received a Restricted Stock Award with a grant date fair value of $11,328 , representing 682 shares of restricted Class A common stock. These shares represent stock dividends paid on the number of shares subject to the 2016 options (had such shares been outstanding) and vest with the time-vesting 2016 options they are associated with, subject to the Retirement Eligibility Date of the respective member of management. Compensation expense shall be recognized on a straight-line basis over the requisite service period. An equitable adjustment was also made to outstanding options in the first quarter of 2019 for the Company’s stock dividend paid on January 24, 2019 . Those additional options are reflected in the summary of grants table above. On June 4, 2019 , a new member of the board of directors received a Restricted Stock Award with a grant date fair value of $0.1 million , representing 4,568 shares of restricted Class A common stock, which will vest in three equal installments on each of the first three anniversaries of the date of grant, subject to continued service on the board of directors. These shares of restricted Class A common stock were a re-issuance of treasury stock. Compensation expense for restricted stock subject to time-based vesting criteria granted to the director will be expensed 1/3 each year, for three years on an annual basis following such grant. On July 1, 2019 , a new employee of the Company received a Restricted Stock Award with a grant date fair value of $0.4 million , representing 24,125 shares of restricted Class A common stock. Fifty percent of this Restricted Stock Award granted is subject to time-based vesting criteria, and the remaining 50% of this Restricted Stock Award is subject to attainment of the Performance Target for the applicable years. The time-vesting restricted stock granted will vest in three installments on July 1 of each of 2020, 2021 and 2022 subject to continu |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | 15. FAIR VALUE OF FINANCIAL INSTRUMENTS Fair value is based upon internal models, using market quotations, broker quotations, counterparty quotations or pricing services quotations, which provide valuation estimates based upon reasonable market order indications and are subject to significant variability based on market conditions, such as interest rates, credit spreads and market liquidity. The fair value of the mortgage loan receivables held for sale is based upon a securitization model utilizing market data from recent securitization spreads and pricing. Fair Value Summary Table The carrying values and estimated fair values of the Company’s financial instruments, which are both reported at fair value on a recurring basis (as indicated) or amortized cost/par, at September 30, 2019 and December 31, 2018 are as follows ($ in thousands): September 30, 2019 Weighted Average Outstanding Face Amount Amortized Cost Basis/Purchase Price Fair Value Fair Value Method Yield % Remaining Maturity/Duration (years) Assets: CMBS(1) $ 1,779,458 $ 1,780,233 $ 1,788,712 Internal model, third-party inputs 3.14 % 2.38 CMBS interest-only(1) 2,139,357 (2) 39,961 41,440 Internal model, third-party inputs 3.65 % 2.61 GNMA interest-only(3) 113,096 (2) 2,202 2,026 Internal model, third-party inputs 9.65 % 2.73 Agency securities(1) 641 652 654 Internal model, third-party inputs 1.74 % 1.97 GNMA permanent securities(1) 31,760 31,984 32,795 Internal model, third-party inputs 3.27 % 4.55 Corporate bonds(1) 32,088 31,604 32,372 Internal model, third-party inputs 4.81 % 1.31 Equity securities(3) N/A 13,720 13,457 Observable market prices N/A N/A Mortgage loan receivables held for investment, net, at amortized cost: Mortgage loan receivables held for investment, net, at amortized cost 3,249,711 3,231,443 3,249,383 Discounted Cash Flow(4) 7.29 % 1.37 Provision for loan losses N/A (18,500 ) (18,500 ) (5) N/A N/A Mortgage loan receivables held for sale 173,957 174,214 182,716 Internal model, third-party inputs(6) 4.59 % 9.68 FHLB stock(7) 61,619 61,619 61,619 (7) 5.50 % N/A Nonhedge derivatives(1)(8) 6,000 N/A 22 Counterparty quotations N/A 0.30 Liabilities: Repurchase agreements - short-term 1,486,049 1,486,049 1,486,049 Discounted Cash Flow(9) 2.65 % 0.18 Repurchase agreements - long-term 299,999 299,999 299,999 Discounted Cash Flow(10) 3.20 % 1.28 Mortgage loan financing 718,351 723,313 748,489 Discounted Cash Flow(10) 4.96 % 1.51 CLO debt 117,760 117,760 117,760 Discounted Cash Flow(9) 4.97 % 5.91 Borrowings from the FHLB 1,076,449 1,076,449 1,084,876 Discounted Cash Flow 2.50 % 2.32 Senior unsecured notes 1,166,201 1,157,117 1,201,973 Broker quotations, pricing services 5.39 % 3.53 Nonhedge derivatives(1)(8) 270,471 N/A 82 Counterparty quotations N/A 0.25 (1) Measured at fair value on a recurring basis with the net unrealized gains or losses recorded as a component of other comprehensive income (loss) in equity. (2) Represents notional outstanding balance of underlying collateral. (3) Measured at fair value on a recurring basis with the net unrealized gains or losses recorded in current period earnings. (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 discounted cash flow model. (5) Fair value is estimated to equal par value. (6) 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. (7) Fair value of the FHLB stock approximates outstanding face amount as the Company’s captive insurance subsidiary is restricted from trading the stock and can only put the stock back to the FHLB, at the FHLB’s discretion, at par. (8) The outstanding face amount of the nonhedge derivatives represents the notional amount of the underlying contracts. (9) Fair value for repurchase agreement liabilities and CLO debt 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. If the collateral is determined to be impaired, the related financing would be revalued accordingly. There are no impairments on any positions. (10) For repurchase agreements - long term and 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. December 31, 2018 Weighted Average Outstanding Face Amount Amortized Cost Basis Fair Value Fair Value Method Yield % Remaining Maturity/Duration (years) Assets: CMBS(1) $ 1,258,819 $ 1,257,801 $ 1,252,640 Internal model, third-party inputs 3.14 % 2.33 CMBS interest-only(1) 2,373,936 (2) 55,534 55,691 Internal model, third-party inputs 2.80 % 2.69 GNMA interest-only(3) 135,932 (2) 2,862 2,648 Internal model, third-party inputs 6.30 % 4.11 Agency securities(1) 668 682 662 Internal model, third-party inputs 1.83 % 2.36 GNMA permanent securities(1) 32,633 32,889 33,064 Internal model, third-party inputs 3.76 % 5.03 Corporate bonds(1) 55,305 54,257 53,871 Internal model, third-party inputs 5.04 % 2.51 Equity securities(3) N/A 13,154 11,550 Observable market prices N/A N/A Mortgage loan receivables held for investment, net, at amortized cost: Mortgage loan receivables held for investment, net, at amortized cost 3,340,381 3,318,390 3,324,588 Discounted Cash Flow(4) 7.84 % 1.32 Provision for loan losses N/A (17,900 ) (17,900 ) (5) N/A N/A Mortgage loan receivables held for sale 181,905 182,439 187,870 Internal model, third-party inputs(6) 5.46 % 9.75 FHLB stock(7) 57,915 57,915 57,915 (7) 4.50 % N/A Nonhedge derivatives(1)(8) — N/A — Counterparty quotations N/A 0.00 Liabilities: Repurchase agreements - short-term 436,957 436,957 436,957 Discounted Cash Flow(9) 3.42 % 0.23 Repurchase agreements - long-term 226,728 226,728 226,728 Discounted Cash Flow(10) 3.47 % 1.73 Mortgage loan financing 738,825 743,902 735,662 Discounted Cash Flow(10) 5.09 % 2.61 CLO debt 601,543 601,543 601,543 Discounted Cash Flow(9) 4.41 % 9.40 Participation Financing - Mortgage Loan Receivable 2,453 2,453 2,453 Discounted Cash Flow(11) 17.00 % 0.43 Borrowings from the FHLB 1,286,000 1,286,000 1,286,664 Discounted Cash Flow 2.55 % 2.46 Senior unsecured notes 1,166,201 1,154,991 1,111,288 Broker quotations, pricing services 5.39 % 4.28 Nonhedge derivatives(1)(8) 578,971 N/A 975 Counterparty quotations N/A 0.25 (1) Measured at fair value on a recurring basis with the net unrealized gains or losses recorded as a component of other comprehensive income (loss) in equity. (2) Represents notional outstanding balance of underlying collateral. (3) Measured at fair value on a recurring basis with the net unrealized gains or losses recorded in current period earnings. (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 discounted cash flow. (5) Fair value is estimated to equal par value. (6) 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. (7) Fair value of the FHLB stock approximates outstanding face amount as the Company’s captive insurance subsidiary is restricted from trading the stock and can only put the stock back to the FHLB, at the FHLB’s discretion, at par. (8) The outstanding face amount of the nonhedge derivatives represents the notional amount of the underlying contracts. (9) Fair value for repurchase agreement liabilities and CLO debt 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. If the collateral is determined to be impaired, the related financing would be revalued accordingly. There are no impairments on any positions. (10) For repurchase agreements - long term and 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. (11) Fair value for Participation Financing - Mortgage Loan Receivable approximates amortized cost as this is a loan participation to a third party. 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 September 30, 2019 and December 31, 2018 ($ in thousands): September 30, 2019 Financial Instruments Reported at Fair Value on Consolidated Statements of Financial Condition Outstanding Face Amount Fair Value Level 1 Level 2 Level 3 Total Assets: CMBS(1) $ 1,767,314 $ — $ — $ 1,777,085 $ 1,777,085 CMBS interest-only(1) 2,128,234 (2) — — 40,601 40,601 GNMA interest-only(3) 113,096 (2) — — 2,026 2,026 Agency securities(1) 641 — — 654 654 GNMA permanent securities(1) 31,760 — — 32,795 32,795 Corporate bonds(1) 32,088 — — 32,372 32,372 Equity securities N/A 13,457 — — 13,457 Nonhedge derivatives(4) 6,000 — 22 — 22 $ 13,457 $ 22 $ 1,885,533 $ 1,899,012 Liabilities: Nonhedge derivatives(4) 270,471 $ — $ 82 $ — $ 82 Financial Instruments Not Reported at Fair Value on Consolidated Statements of Financial Condition Outstanding Face Amount Fair Value Level 1 Level 2 Level 3 Total Assets: Mortgage loan receivable held for investment, net, at amortized cost: Mortgage loans held by consolidated subsidiaries $ 3,249,711 $ — $ — $ 3,249,383 $ 3,249,383 Provision for loan losses N/A — — (18,500 ) (18,500 ) Mortgage loan receivable held for sale 173,957 — — 182,716 182,716 CMBS(5) 12,144 — — 11,627 11,627 CMBS interest-only(5) 11,123 (2) — — 839 839 FHLB stock 61,619 — — 61,619 61,619 $ — $ — $ 3,487,684 $ 3,487,684 Liabilities: Repurchase agreements - short-term 1,486,049 $ — $ — $ 1,486,049 $ 1,486,049 Repurchase agreements - long-term 299,999 — — 299,999 299,999 Mortgage loan financing 718,351 — — 748,489 748,489 CLO debt 117,760 — — 117,760 117,760 Borrowings from the FHLB 1,076,449 — — 1,084,876 1,084,876 Senior unsecured notes 1,166,201 — — 1,201,973 1,201,973 $ — $ — $ 4,939,146 $ 4,939,146 (1) Measured at fair value on a recurring basis with the net unrealized gains or losses recorded as a component of other comprehensive income (loss) in equity. (2) Represents notional outstanding balance of underlying collateral. (3) Measured at fair value on a recurring basis with the net unrealized gains or losses recorded in current period earnings. (4) Measured at fair value on a recurring basis with the net unrealized gains or losses recorded in current period earnings. The outstanding face amount of the nonhedge derivatives represents the notional amount of the underlying contracts. (5) Restricted securities which are designated as risk retention securities under the Dodd-Frank Act and are therefore subject to transfer restrictions over the term of the securitization trust, which are classified as held-to-maturity and reported at amortized cost. December 31, 2018 Financial Instruments Reported at Fair Value on Consolidated Statements of Financial Condition Outstanding Face Amount Fair Value Level 1 Level 2 Level 3 Total Assets: CMBS(1) $ 1,246,609 $ — $ — $ 1,241,334 $ 1,241,334 CMBS interest-only(1) 2,362,747 (2) — — 54,789 54,789 GNMA interest-only(3) 135,932 (2) — — 2,648 2,648 Agency securities(1) 668 — — 662 662 GNMA permanent securities(1) 32,633 — — 33,064 33,064 Corporate bonds(1) 55,305 — — 53,871 53,871 Equity securities N/A 11,550 — — 11,550 $ 11,550 $ — $ 1,386,368 $ 1,397,918 Liabilities: Nonhedge derivatives(4) $ 605,871 $ — $ 975 $ — $ 975 Financial Instruments Not Reported at Fair Value on Consolidated Statements of Financial Condition Outstanding Face Amount Fair Value Level 1 Level 2 Level 3 Total Assets: Mortgage loan receivable held for investment, net, at amortized cost: Mortgage loans held by consolidated subsidiaries $ 3,340,381 $ — $ — $ 3,324,588 $ 3,324,588 Provision for loan losses N/A — — (17,900 ) (17,900 ) Mortgage loan receivables held for sale 181,905 — — 187,870 187,870 CMBS(5) 12,210 — — 11,306 11,306 CMBS interest-only(5) 11,189 (2) — — 902 902 FHLB stock 57,915 — — 57,915 57,915 $ — $ — $ 3,564,681 $ 3,564,681 Liabilities: Repurchase agreements - short-term 436,957 $ — $ — $ 436,957 $ 436,957 Repurchase agreements - long-term 226,728 — — 226,728 226,728 Mortgage loan financing 738,825 — — 735,662 735,662 CLO debt 601,543 — — 601,543 601,543 Participation Financing - Mortgage Loan Receivable 2,453 — — 2,453 2,453 Borrowings from the FHLB 1,286,000 — — 1,286,664 1,286,664 Senior unsecured notes 1,166,201 — — 1,111,288 1,111,288 $ — $ — $ 4,401,295 $ 4,401,295 (1) Measured at fair value on a recurring basis with the net unrealized gains or losses recorded as a component of other comprehensive income (loss) in equity. (2) Represents notional outstanding balance of underlying collateral. (3) Measured at fair value on a recurring basis with the net unrealized gains or losses recorded in current period earnings. (4) Measured at fair value on a recurring basis with the net unrealized gains or losses recorded in current period earnings. The outstanding face amount of the nonhedge derivatives represents the notional amount of the underlying contracts. (5) Restricted securities which are designated as risk retention securities under the Dodd-Frank Act and are therefore subject to transfer restrictions over the term of the securitization trust, which are classified as held-to-maturity and reported at amortized cost. The following table summarizes changes in Level 3 financial instruments reported at fair value on the consolidated statements of financial condition for the nine months ended September 30, 2019 and 2018 ($ in thousands): Nine Months Ended September 30, Level 3 2019 2018 Balance at January 1, $ 1,385,957 $ 1,106,517 Transfer from level 2 — — Purchases 1,193,671 303,007 Sales (533,811 ) (306,109 ) Paydowns/maturities (178,402 ) (93,185 ) Amortization of premium/discount (9,333 ) (17,842 ) Unrealized gain/(loss) 16,813 (9,203 ) Realized gain/(loss) on sale(1) 10,639 (4,896 ) Balance at September 30, $ 1,885,534 $ 978,289 (1) Includes realized losses on securities recorded as other than temporary impairments. The following is quantitative information about significant unobservable inputs in our Level 3 measurements for those assets and liabilities measured at fair value on a recurring basis ($ in thousands): September 30, 2019 Financial Instrument Carrying Value Valuation Technique Unobservable Input Minimum Weighted Average Maximum CMBS(1) $ 1,788,712 Discounted cash flow Yield (4) 1.68 % 3.1 % 20.55 % Duration (years)(5) 0.00 1.54 7.10 CMBS interest-only(1) 41,440 (2) Discounted cash flow Yield (4) 1.79 % 3.73 % 6.35 % Duration (years)(5) 0.08 2.61 3.85 Prepayment speed (CPY)(5) 100.00 100.00 100.00 GNMA interest-only(3) 2,026 (2) Discounted cash flow Yield (4) (7.19 )% 14.44 % 44.47 % Duration (years)(5) 0.00 2.78 8.61 Prepayment speed (CPJ)(5) 5.00 11.57 15.00 Agency securities(1) 654 Discounted cash flow Yield (4) — % 1.43 % 1.85 % Duration (years)(5) 0.00 2.46 3.17 GNMA permanent securities(1) 32,795 Discounted cash flow Yield (4) 3.43 % 18.72 % 84.30 % Duration (years)(5) 1.15 7.76 13.99 Corporate bonds(1) 32,372 Discounted cash flow Yield (4) 2.79 % 2.79 % 2.79 % Duration (years)(5) 1.05 1.05 1.05 Total $ 1,897,999 (1) CMBS, CMBS interest-only securities, Agency securities, GNMA construction securities, GNMA permanent securities and corporate bonds 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. (2) The amounts presented represent the principal amount of the mortgage loans outstanding in the pool in which the interest-only securities participate. (3) Agency interest-only securities are recorded at fair value with changes in fair value recorded in current period earnings. Sensitivity of the Fair Value to Changes in the Unobservable Inputs (4) Significant increase (decrease) in the unobservable input in isolation would result in significantly lower (higher) fair value measurement. (5) Significant increase (decrease) in the unobservable input in isolation would result in either a significantly lower or higher (lower or higher) fair value measurement depending on the structural features of the security in question. December 31, 2018 Financial Instrument Carrying Value Valuation Technique Unobservable Input Minimum Weighted Average Maximum CMBS(1) $ 1,252,640 Discounted cash flow Yield (3) — % 3.54 % 21.67 % Duration (years)(4) 0.00 2.50 7.78 CMBS interest-only(1) 55,691 (2) Discounted cash flow Yield (3) 0.87 % 4.71 % 8.11 % Duration (years)(4) 0.14 2.96 6.86 Prepayment speed (CPY)(4) 100.00 100.00 100.00 GNMA interest-only(3) 2,648 (2) Discounted cash flow Yield (4) 1.21 % 5.54 % 10.21 % Duration (years)(5) 0.04 3.13 4.77 Prepayment speed (CPJ)(5) 5.00 6.58 15.00 Agency securities(1) 662 Discounted cash flow Yield (4) — % 2.1 % 2.84 % Duration (years)(5) 0.00 2.83 3.82 GNMA permanent securities(1) 33,064 Discounted cash flow Yield (4) — % 3.51 % 4 % Duration (years)(5) 0.00 5.62 5.88 Corporate bonds(1) 53,871 Discounted cash flow Yield (4) 5.3 % 5.35 % 5.46 % Duration (years)(5) 1.94 2.19 2.70 Total $ 1,398,576 (1) CMBS, CMBS interest-only securities, Agency securities, GNMA construction securities, GNMA permanent securities and corporate bonds 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. (2) The amounts presented represent the principal amount of the mortgage loans outstanding in the pool in which the interest-only securities participate. (3) Agency interest-only securities are recorded at fair value with changes in fair value recorded in current period earnings. Sensitivity of the Fair Value to Changes in the Unobservable Inputs (4) Significant increase (decrease) in the unobservable input in isolation would result in significantly lower (higher) fair value measurement. (5) Significant increase (decrease) in the unobservable input in isolation would result in either a significantly lower or higher (lower or higher) fair value measurement depending on the structural features of the security in question. Nonrecurring Fair Values The Company measures fair value of certain assets on a nonrecurring basis when events or changes in circumstances indicate that the carrying value of the assets may not be recoverable. Adjustments to fair value generally result from the application of lower of amortized cost or fair value accounting for assets held for sale or write-down of assets value due to impairment. There were no assets carried at fair value on a nonrecurring basis at September 30, 2019 and December 31, 2018 . The following table summarizes the fair value write-downs to assets carried at fair value on a nonrecurring basis ($ in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Impairment of real estate Real estate, net(1)(2) $ — $ — $ 1,350 $ — (1) The write down to fair value was recorded based on contracted sales price and classified as Level 2 of the fair valuation hierarchy. On May 1, 2019 , the Company completed the sale of the property recognizing $3.9 million of operating lease income, $3.5 million realized loss on sale of real estate, net and $0.4 million of depreciation and amortization expense, resulting in a $20 thousand loss on sale of real estate, net. (2) Impairment is discussed in further detail in Note 5, Real Estate and Related Lease Intangibles, Net . |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 16. INCOME TAXES The Company elected to be taxed as a REIT under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended (the “Code”), commencing with the taxable year ended December 31, 2015 (the REIT Election”). As such, the Company’s income is generally not subject to U.S. Federal, state and local corporate income taxes other than as described below. Certain of the Company’s subsidiaries have elected to be treated as TRSs. TRSs permit the Company to participate in certain activities from which REITs are generally precluded, as long as these activities meet specific criteria, are conducted within the parameters of certain limitations established by the Code, and are conducted in entities which elect to be treated as taxable subsidiaries under the Code. To the extent these criteria are met, the Company will continue to maintain its qualification as a REIT. The Company’s TRSs are not consolidated for U.S. federal income tax purposes, but are instead taxed as corporations. For financial reporting purposes, a provision for current and deferred taxes is established for the portion of earnings recognized by the Company with respect to its interest in TRSs. Current income tax expense (benefit) was $0.4 million and $(6.9) million for the three and nine months ended September 30, 2019 , respectively. Current income tax expense (benefit) was $7.2 million and $10.2 million for the three and nine months ended September 30, 2018 , respectively. As of September 30, 2019 and December 31, 2018 , the Company’s net deferred tax assets (liabilities) were $(4.7) million and $2.3 million , respectively, and are included in other assets (other liabilities) in the Company’s consolidated balance sheets. Deferred income tax expense (benefit) included within the provision for income taxes was $0.7 million and $7.4 million for the three and nine months ended September 30, 2019 , respectively. Deferred income tax expense (benefit) included within the provision for income taxes was $(6.0) million and $(4.5) million for the three and nine months ended September 30, 2018 , respectively. The Company’s net deferred tax liability is comprised of deferred tax assets and deferred tax liabilities. The Company believes it is more likely than not that the deferred tax assets (aside from the exception noted below) will be realized in the future. Realization of the 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 deferred tax assets considered realizable is subject to adjustment in future periods if estimates of future taxable income change. As of September 30, 2019 , the Company has a deferred tax asset of $10.0 million relating to capital losses which it may only use to offset capital gains. These tax attributes will begin to expire if unused in 2020. As the realization of these assets are not more likely than not before their expiration, the Company has provided a full valuation allowance against this deferred tax asset. The Company’s tax returns are subject to audit by taxing authorities. Generally, as of September 30, 2019 , the tax years 2015-2018 remain open to examination by the major taxing jurisdictions in which the Company is subject to taxes. The Company acquired certain corporate entities at the time of its IPO. The related acquisition agreements provided an indemnification to the Company by each transferor of any amounts due for any potential tax liabilities owed by these entities for tax years prior to their acquisition. In January 2019, a settlement was reached with New York State pertaining to an audit of these corporate entities for the years 2013-2015. As a result of the settlement, during the year ended December 31, 2018, management recorded income tax expense in the amount of $3.3 million and a corresponding payable to the State of New York. Pursuant to the indemnification, management expects to recover $2.5 million of such amounts and, accordingly, recorded fee and other income in the amount of $2.5 million as well as a corresponding receivable from the indemnity counterparties. As of July 31, 2019, the Company collected all amounts owed by the indemnity counterparties related to the 2013-2015 audit. The IRS recently completed its audit of the 2014 tax year and did not recommend any changes to the Company’s tax return. The Company is currently under New York City audit for tax years 2012-2014. The Company does not expect the audit to result in any material changes to the Company’s financial position. The Company does not expect tax expense to have an impact on either short or long-term liquidity or capital needs. 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. A position that meets this standard is measured at the largest amount of benefit that will more likely than not be realized upon settlement. As of September 30, 2019 and December 31, 2018 , the Company’s unrecognized tax benefit is a liability for $0.2 million and $0.8 million , respectively, and is included in the accrued expenses in the Company’s consolidated balance sheets. This unrecognized tax benefit, if recognized, would have a favorable impact on our effective income tax rate in future periods. As of September 30, 2019 , the Company has not recognized a significant amount of any interest or penalties related to uncertain tax positions. 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. The statute of limitations for the federal portion of the $0.8 million unrecognized tax benefit as of December 31, 2018 had expired as of September 30, 2019. This expiration allowed us to release $0.6 million of the unrecognized tax benefit liability. 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 may make future payments under the Tax Receivable Agreement if the tax benefits are realized. We would then 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 September 30, 2019 and December 31, 2018 , pursuant to the Tax Receivable Agreement, the Company recorded a liability of $1.6 million , included in amount payable pursuant to tax receivable agreement in the 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. 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 (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 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 the amount that would have been paid under the original 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. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 9 Months Ended |
Sep. 30, 2019 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | 17. RELATED PARTY TRANSACTIONS Ladder Select Bond Fund On October 18, 2016, Ladder Capital Asset Management LLC (“LCAM”), a subsidiary of the Company and a registered investment adviser, launched the Ladder Select Bond Fund (the “Fund”), a mutual fund. In addition, on October 18, 2016, the Company made a $10.0 million investment in the Fund, which is included in other assets in the consolidated balance sheets. As of September 30, 2019 , members of senior management have $0.8 million invested in the Fund. LCAM earns a 0.75% fee on assets under management, which may be reduced for expenses incurred in excess of the Fund’s expense cap of 0.95% . Stockholders Agreement On March 3, 2017, Ladder, RREF II Ladder LLC, an entity affiliated with The Related Companies (“Related”), and certain pre-IPO stockholders of Ladder, including affiliates of TowerBrook Capital Partners, L.P. and GI Partners L.P., closed a purchase by Related of $80.0 million of Ladder’s Class A common stock from the pre-IPO stockholders. As part of the closing of the transaction, Ladder and Related entered into a Stockholders Agreement, dated as of March 3, 2017, pursuant to which Jonathan Bilzin resigned from the Board, and all committees thereof, and Ladder appointed Richard O’Toole to replace Mr. Bilzin as a Class II Director on Ladder’s Board, each effective as of March 3, 2017. Pursuant to the Stockholders Agreement, Ladder granted to Related a right of first offer with respect to certain horizontal risk retention investments in which Ladder intends to retain an interest and Related agreed to certain standstill provisions. Commercial Real Estate Loans From time to time, the Company may provide commercial real estate loans to entities affiliated with certain of our directors, officers or large shareholders who are, as part of their ordinary course of business, commercial real estate investors. These loans are made in the ordinary course of the Company’s business on the same terms and conditions as would be offered to any other borrower of similar type and standing on a similar property. On March 13, 2017, Related Reserve IV LLC, an affiliate of Related Fund Management LLC (the “B Participation Holder”), purchased a $4.0 million subordinate participation interest (the “B Participation Interest”) in the up to $136.5 million mortgage loan (the “Loan”) secured by the Conrad hotels and condominiums in Fort Lauderdale, Florida from a subsidiary of the Company. The B Participation Interest earns interest at an annual rate of 17% , with the Company’s participation interest (the “A Participation Interest”) receiving the balance of all interest paid under the Loan. Upon an event of default under the Loan, all receipts will be applied to the payment of interest and principal on the Company’s share of the principal balance before the B Participation Holder receives any sums. The Company retains all control over the administration and servicing of the whole loan, except that upon the occurrence of certain Loan defaults and other events, the B Participation Holder will have the option to trigger a buy-sell option, whereupon the Company shall have the right to either repurchase the B Participation Interest at par or sell the A Participation Interest to the B Participation Holder at par plus exit fees that would have been payable upon a borrower repayment. Because the participation interest was not pari passu and effective control continued to reside with the retained portions of the loans the transfers of any portion of this loan asset is considered a non-recourse secured borrowing in which the full loan asset remains on the Company’s consolidated balance sheets in mortgage loan receivables held for investment, net, at amortized cost and the sale proceeds are reported as debt obligations. The loan was repaid during the three months ended June 30, 2019. See Note 7, Debt Obligations, Net for further detail. The Company recorded $0.2 million of interest expense for the nine months ended September 30, 2019 , which is included in accrued expenses on the consolidated balance sheets. The Company recorded $0.1 million and $0.4 million of interest expense for the three and nine months ended September 30, 2018 , respectively, which is included in accrued expenses on the consolidated balance sheets. On December 12, 2018 , Ladder provided a $6.4 million first mortgage interest-only loan to a borrower affiliated with principals of Related to facilitate the acquisition of a gym facility and associated parking located in Woodbury, New York. The borrowing entity is owned directly or indirectly by certain investors, including, among other principals of Related, Richard O’Toole, who owns an approximate 12% interest in the borrowing entity and is a member of Ladder’s board of directors. For the nine months ended September 30, 2019 , the Company earned $0.1 million in interest income related to this loan. The loan was sold into a securitization trust during the three months ended June 30, 2019. On March 5, 2019 , Ladder provided a $14.3 million first mortgage interest-only loan to a borrower affiliated with principals of Related to refinance a gym facility and associated parking located in Bloomfield Heights, Michigan. The borrowing entity is owned directly or indirectly by certain investors, including, among other principals of Related, Richard O’Toole, who owns an approximate 0.7% interest in the borrowing entity and is a member of Ladder’s board of directors. For the nine months ended September 30, 2019 , the Company earned $0.3 million in interest income related to this loan. The loan was sold into a securitization trust during the three months ended June 30, 2019. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 18. COMMITMENTS AND CONTINGENCIES Leases The Company adopted ASC Topic 842 on January 1, 2019. The primary impact of applying ASC Topic 842 was the initial recognition of a $3.5 million lease liability and a $3.3 million right of use asset (including previously accrued straight line rent) on the Company’s consolidated financial statements, for leases classified as operating leases under ASC Topic 840, primarily for the Company’s corporate headquarters and other identified leases. There is no cumulative effect on retained earnings or other components of equity recognized as of January 1, 2019. As of September 30, 2019 , the Company had a $2.7 million lease liability and a $2.7 million right-of-use asset on its consolidated balance sheets. Tenant reimbursements, which consist of real estate taxes and other municipal charges paid by us which were reimbursable by our tenants pursuant to the terms of triple-net lease agreements, were $1.3 million and $4.6 million for the three and nine months ended September 30, 2019 , respectively, and are included in operating lease income on the Company’s consolidated statements of income, compared to $2.3 million and $7.8 million of tenant reimbursements for the three and nine months ended September 30, 2018 , respectively. Investments in Unconsolidated Joint Ventures We have made investments in various unconsolidated joint ventures. See Note 6, Investment in and Advances to Unconsolidated Joint Ventures for further details of our unconsolidated investments. Our maximum exposure to loss from these investments is limited to the carrying value of our investments. Unfunded Loan Commitments As of September 30, 2019 , the Company’s off-balance sheet arrangements consisted of $257.7 million 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, 2018 , the Company’s off-balance sheet arrangements consisted of $379.8 million |
SEGMENT REPORTING
SEGMENT REPORTING | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | 19. SEGMENT REPORTING The Company has determined that it has three reportable segments based on how the chief operating decision maker reviews and manages the business. These reportable segments include loans, securities, and real estate. The loans segment includes mortgage loan receivables held for investment (balance sheet loans) and mortgage loan receivables held for sale (conduit loans). The securities segment is composed of all of the Company’s activities related to commercial real estate securities, which include investments in CMBS, U.S. Agency Securities, corporate bonds and equity securities. The real estate segment includes net leased properties, office buildings, a student housing portfolio, industrial buildings, a shopping center and condominium units. Corporate/other includes the Company’s investments in joint ventures, other asset management activities and operating expenses. The Company evaluates performance based on the following financial measures for each segment ($ in thousands): Loans Securities Real Estate(1) Corporate/Other(2) Company Total Three months ended September 30, 2019 Interest income $ 66,422 $ 15,515 $ 7 $ 307 $ 82,251 Interest expense (12,063 ) (5,632 ) (9,646 ) (24,056 ) (51,397 ) Net interest income (expense) 54,359 9,883 (9,639 ) (23,749 ) 30,854 Provision for loan losses — — — — — Net interest income (expense) after provision for loan losses 54,359 9,883 (9,639 ) (23,749 ) 30,854 Operating lease income — — 24,405 — 24,405 Sale of loans, net 11,247 — — — 11,247 Realized gain (loss) on securities — 3,396 — — 3,396 Unrealized gain (loss) on equity securities — 254 — — 254 Unrealized gain (loss) on Agency interest-only securities — 16 — — 16 Realized gain on sale of real estate, net — — 2,082 — 2,082 Fee and other income 3,839 428 — 899 5,166 Net result from derivative transactions (6,557 ) (2,908 ) — — (9,465 ) Earnings (loss) from investment in unconsolidated joint ventures — — 1,094 — 1,094 Total other income (loss) 8,529 1,186 27,581 899 38,195 Salaries and employee benefits — — — (14,319 ) (14,319 ) Operating expenses — — — (5,314 ) (3) (5,314 ) Real estate operating expenses — — (6,270 ) — (6,270 ) Fee expense (1,264 ) (92 ) (700 ) — (2,056 ) Depreciation and amortization — — (9,005 ) (25 ) (9,030 ) Total costs and expenses (1,264 ) (92 ) (15,975 ) (19,658 ) (36,989 ) Income tax (expense) benefit — — — (1,112 ) (1,112 ) Segment profit (loss) $ 61,624 $ 10,977 $ 1,967 $ (43,620 ) $ 30,948 Total assets as of September 30, 2019 $ 3,387,157 $ 1,911,456 $ 1,032,752 $ 288,509 $ 6,619,874 Loans Securities Real Estate(1) Corporate/Other(2) Company Total Three months ended September 30, 2018 Interest income $ 81,779 $ 8,541 $ 6 $ 60 $ 90,386 Interest expense (17,232 ) (1,482 ) (9,213 ) (23,549 ) (51,476 ) Net interest income (expense) 64,547 7,059 (9,207 ) (23,489 ) 38,910 Provision for loan losses (10,300 ) — — — (10,300 ) Net interest income (expense) after provision for loan losses 54,247 7,059 (9,207 ) (23,489 ) 28,610 Operating lease income — — 24,997 — 24,997 Sale of loans, net 1,861 — — — 1,861 Realized gain (loss) on securities — (2,554 ) — — (2,554 ) Unrealized gain (loss) on Agency interest-only securities — 142 — — 142 Realized gain on sale of real estate, net — — 63,704 — 63,704 Fee and other income 3,895 — — 956 4,851 Net result from derivative transactions 3,741 3,374 — — 7,115 Earnings (loss) from investment in unconsolidated joint ventures — — 401 — 401 Gain (loss) on extinguishment/defeasance of debt — — (4,323 ) — (4,323 ) Total other income (loss) 9,497 962 84,779 956 96,194 Salaries and employee benefits — — — (15,792 ) (15,792 ) Operating expenses 61 — — (5,525 ) (3) (5,464 ) Real estate operating expenses — — (7,152 ) — (7,152 ) Fee expense (928 ) (91 ) (292 ) — (1,311 ) Depreciation and amortization — — (10,398 ) (19 ) (10,417 ) Total costs and expenses (867 ) (91 ) (17,842 ) (21,336 ) (40,136 ) Income tax (expense) benefit — — — (1,204 ) (1,204 ) Segment profit (loss) $ 62,877 $ 7,930 $ 57,730 $ (45,073 ) $ 83,464 Total assets as of December 31, 2018 $ 3,482,929 $ 1,410,126 $ 1,038,376 $ 341,441 $ 6,272,872 Loans Securities Real Estate(1) Corporate/Other(2) Company Total Nine months ended September 30, 2019 Interest income $ 209,369 $ 43,844 $ 21 $ 806 $ 254,040 Interest expense (41,043 ) (12,250 ) (27,620 ) (74,102 ) (155,015 ) Net interest income (expense) 168,326 31,594 (27,599 ) (73,296 ) 99,025 Provision for loan losses (600 ) — — — (600 ) Net interest income (expense) after provision for loan losses 167,726 31,594 (27,599 ) (73,296 ) 98,425 Operating lease income — — 81,106 — 81,106 Sale of loans, net 38,589 — — — 38,589 Realized gain (loss) on securities — 10,726 — — 10,726 Unrealized gain (loss) on equity securities — 1,341 — — 1,341 Unrealized gain (loss) on Agency interest-only securities — 38 — — 38 Realized gain on sale of real estate, net — — 963 — 963 Impairment of real estate — — (1,350 ) — (1,350 ) Fee and other income 13,095 1,165 7 2,780 17,047 Net result from derivative transactions (20,273 ) (15,683 ) — — (35,956 ) Earnings (loss) from investment in unconsolidated joint ventures — — 3,617 — 3,617 Gain (loss) on extinguishment of debt — — (1,070 ) — (1,070 ) Total other income (loss) 31,411 (2,413 ) 83,273 2,780 115,051 Salaries and employee benefits — — — (52,800 ) (52,800 ) Operating expenses — — — (16,727 ) (3) (16,727 ) Real estate operating expenses — — (17,776 ) (17,776 ) Fee expense (3,516 ) (280 ) (1,155 ) — (4,951 ) Depreciation and amortization — — (29,118 ) (74 ) (29,192 ) Total costs and expenses (3,516 ) (280 ) (48,049 ) (69,601 ) (121,446 ) Income tax (expense) benefit — — — (478 ) (478 ) Segment profit (loss) $ 195,621 $ 28,901 $ 7,625 $ (140,595 ) $ 91,552 Total assets as of September 30, 2019 $ 3,387,157 $ 1,911,456 $ 1,032,752 $ 288,509 $ 6,619,874 Loans Securities Real Estate(1) Corporate/Other(2) Company Total Nine months ended September 30, 2018 Interest income $ 228,273 $ 25,217 $ 16 $ 316 $ 253,822 Interest expense (46,286 ) (3,423 ) (25,799 ) (69,098 ) (144,606 ) Net interest income (expense) 181,987 21,794 (25,783 ) (68,782 ) 109,216 Provision for loan losses (13,600 ) — — — (13,600 ) Net interest income (expense) after provision for loan losses 168,387 21,794 (25,783 ) (68,782 ) 95,616 Operating lease income — — 79,306 — 79,306 Sale of loans, net 12,893 — — — 12,893 Realized gain (loss) on securities — (4,896 ) — — (4,896 ) Unrealized gain (loss) on Agency interest-only securities — 456 — — 456 Realized gain on sale of real estate, net — — 96,341 — 96,341 Fee and other income 10,823 72 3,416 3,268 17,579 Net result from derivative transactions 14,516 14,640 — — 29,156 Earnings (loss) from investment in unconsolidated joint ventures — — 466 — 466 Gain (loss) on extinguishment of debt (69 ) — (4,323 ) — (4,392 ) Total other income (loss) 38,163 10,272 175,206 3,268 226,909 Salaries and employee benefits — — — (46,754 ) (46,754 ) Operating expenses 61 — — (16,669 ) (3) (16,608 ) Real estate operating expenses — — (23,806 ) (23,806 ) Fee expense (2,160 ) (297 ) (496 ) — (2,953 ) Depreciation and amortization — — (31,840 ) (56 ) (31,896 ) Total costs and expenses (2,099 ) (297 ) (56,142 ) (63,479 ) (122,017 ) Income tax (expense) benefit — — — (5,679 ) (5,679 ) Segment profit (loss) $ 204,451 $ 31,769 $ 93,281 $ (134,672 ) $ 194,829 Total assets as of December 31, 2018 $ 3,482,929 $ 1,410,126 $ 1,038,376 $ 341,441 $ 6,272,872 (1) Includes the Company’s investment in unconsolidated joint ventures that held real estate of $51.4 million and $40.4 million as of September 30, 2019 and December 31, 2018 , respectively. (2) Corporate/Other represents all corporate level and unallocated items including any intercompany eliminations necessary to reconcile to consolidated Company totals. This segment 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 FHLB stock of $61.6 million and $57.9 million as of September 30, 2019 and December 31, 2018 , respectively, the Company’s deferred tax asset (liability) of $(4.7) million and $2.3 million as of September 30, 2019 and December 31, 2018 , respectively and the Company’s senior unsecured notes of $1.2 billion as of September 30, 2019 and December 31, 2018 . (3) Includes $3.0 million and $9.1 million of professional fees for the three and nine months ended September 30, 2019 , respectively. Includes $2.9 million and $8.7 million of professional fees for the three and nine months ended September 30, 2018 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Sep. 30, 2019 | |
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 no disclosure is necessary. |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Accounting and Principles of Consolidation | Basis of Accounting and Principles of Consolidation The accompanying consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). In the opinion of management, the unaudited financial information for the interim periods presented in this report reflects all normal and recurring adjustments necessary for a fair statement of results of operations, financial position and cash flows. The interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2018 , which are included in the Company’s Annual Report, as certain disclosures that would substantially duplicate those contained in the audited consolidated financial statements have not been included in this interim report. Operating results for interim periods are not necessarily indicative of operating results for an entire fiscal year. The interim consolidated financial statements have been prepared, without audit, and do not necessarily include all information and footnotes necessary for a fair statement of our consolidated financial position, results of operations and cash flows in accordance with GAAP. The 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. Financial Accounting Standards Board (“FASB”) 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 the entity that has both of the following characteristics: (1) the power to direct the activities that, when taken together, most significantly impact the VIE’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. See Note 10 for further information on the Company’s consolidated variable interest entities. 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 equity in the 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 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 consolidated financial statements in the period the changes are deemed to be necessary. Significant estimates made in the accompanying consolidated financial statements include, but are not limited to the following: • valuation of real estate securities; • valuation of mortgage loan receivables held for sale; • 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 (liability); • amounts payable pursuant to the Tax Receivable Agreement; • determination of effective yield for recognition of interest income; • adequacy of provision for loan losses including the valuation of underlying collateral for collateral dependent loans; • determination of other than temporary impairment of real estate securities and investments in and advances to 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. |
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 September 30, 2019 and December 31, 2018 . At September 30, 2019 and December 31, 2018 , and at various times during the years, the balances exceeded the insured limits. |
Restricted Cash | Restricted Cash Restricted cash is comprised of accounts the Company maintains 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 also includes tenant security deposits, deposits related to real estate sales and acquisitions and required escrow balances on credit facilities. Prior to January 1, 2017, these amounts were previously recorded in other assets on the Company’s consolidated balance sheets. |
Recognition of Operating Lease Income and Tenant Recoveries | The Company adopted ASC Topic 842 on January 1, 2019. The primary impact of applying ASC Topic 842 was the initial recognition of a $3.5 million lease liability and a $3.3 million right-of-use asset (including previously accrued straight line rent) on the Company’s consolidated financial statements, for leases classified as operating leases under ASC Topic 840, primarily for the Company’s corporate headquarters and other identified leases. There is no cumulative effect on retained earnings or other components of equity recognized as of January 1, 2019. Certain arrangements may contain both lease and non-lease components. The Company determines if an arrangement is, or contains, a lease at contract inception. Only the lease components of these contractual arrangements are subject to the provisions of ASC Topic 842. Any non-lease components are subject to other applicable accounting guidance. We have elected, however, to adopt the optional practical expedient not to separate lease components from non-lease components for accounting purposes. This policy election has been adopted for each of the Company’s leased asset classes existing as of the effective date and subject to the transition provisions of ASC Topic 842, will be applied to all new or modified leases executed on or after January 1, 2019. For contractual arrangements executed in subsequent periods involving a new leased asset class, the Company will determine at contract inception whether it will apply the optional practical expedient to the new leased asset class. Leases are evaluated for classification as operating or finance leases at the commencement date of the lease. Right-of-use assets and corresponding liabilities are recognized on the Company’s consolidated balance sheet based on the present value of future lease payments relating to the use of the underlying asset during the lease term. Future lease payments include fixed lease payments as well as variable lease payments that depend upon an index or rate using the index or rate at the commencement date and probable amounts owed under residual value guarantees. The amount of future lease payments may be increased to include additional payments related to lease extension, termination, and/or purchase options when the Company has determined, at or subsequent to lease commencement, generally due to limited asset availability or operating commitments, it is reasonably certain of exercising such options. The Company uses its incremental borrowing rate as the discount rate in determining the present value of future lease payments, unless the interest rate implicit in the lease arrangement is readily determinable. Lease payments that vary based on future usage levels, the nature of leased asset activities, or certain other contingencies, are not included in the measurement of lease right-of-use assets and corresponding liabilities. The Company has elected not to record assets and liabilities on its consolidated balance sheet for lease arrangements with terms of 12 months or less. 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. |
Recent Accounting Pronouncements | Recently Adopted Accounting Pronouncements In February 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842) (“ASU 2016-02”), which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e. lessees and lessors). The new standard requires lessees to apply a dual approach, classifying leases as either operating leases or financing leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification will determine whether lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term greater than 12 months regardless of their classification. Leases with a term of 12 months or less will be accounted for similar to existing guidance for operating leases today. The new standard requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sale-type leases, direct financing leases and operating leases. ASU 2016-02 supersedes the previous lease standard, Leases (Topic 840) . In July 2018, the FASB issued ASU 2018-10, Codification Improvements to Topic 842 (Leases) (“ASU 2018-10”), which provides narrow amendments to clarify how to apply certain aspects of the new leasing standard. In July 2018, the FASB also issued ASU 2018-11, Leases (Topic 842): Targeted Improvements (“ASU 2018-11”), which provides a new transition method at the adoption date through a cumulative-effect adjustment to the opening balance of retained earnings, prior periods will not require restatement. ASU 2018-11 also provides a new practical expedient for lessors adopting the new lease standard. Lessors have the option to aggregate nonlease components with the related lease component upon adoption of the new standard if the following conditions are met: (1) the timing and pattern of transfer for the nonlease component and the related lease component are the same and (2) the stand-alone lease component would be classified as an operating lease if accounted for separately. In December 2018, the FASB issued ASU 2018-20, Leases (Topic 842) (“ASU 2018-20”), which provides narrow amendments to clarify how to apply certain aspects of the new leasing standard. Each of the standards are effective for the Company on January 1, 2019, with early adoption permitted. In March 2019, the FASB issued ASU 2019-01, Leases (Topic 842): Codification Improvements (“ASU 2019-01”), which aligns the guidance for fair value of the underlying asset by lessors that are not manufacturers or dealers in Topic 842 with that of existing guidance. As a result, the fair value of the underlying asset at lease commencement is its cost, reflecting any volume or trade discounts that may apply. However, if there has been a significant lapse of time between when the underlying asset is acquired and when the lease commences, the definition of fair value in Topic 820, Fair Value Measurement should be applied. ASU 2019-01 also requires lessors within the scope of Topic 942, Financial Services—Depository and Lending , to present all “principal payments received under leases” within investing activities. The Company adopted ASU 2016-02, ASU 2018-10, ASU 2018-11, ASU 2018-20 and ASU 2019-01, collectively FASB ASC Topic 842, Leases (“ASC Topic 842”), beginning January 1, 2019. The Company adopted ASU Topic 842 using the modified retrospective approach and elected to utilize the Optional Transition Method, which permits the Company to apply the provisions of ASC Topic 842 to leasing arrangements existing at or entered into after January 1, 2019, and present in its financial statements comparative periods prior to January 1, 2019 under the historical requirements of ASC Topic 840. In addition, the Company elected to adopt the package of optional transition-related practical expedients, which among other things, allows the Company to carry forward certain historical conclusions reached under ASC Topic 840 regarding lease identification, classification, and the accounting treatment of initial direct costs. Furthermore, the Company elected not to record assets and liabilities on its consolidated balance sheets for new or existing lease arrangements with terms of 12 months or less. In March 2017, the FASB issued ASU 2017-08, Receivables-Nonrefundable Fees and Other Costs (Subtopic 310-20), (“ASU 2017-08”). The ASU shortens the amortization period for the premium on certain purchased callable debt securities to the earliest call date. Historically, entities generally amortized the premium over the contractual life of the security. The new guidance does not change the accounting for purchased callable debt securities held at a discount; the discount continues to be amortized to maturity. ASU No. 2017-08 is effective for interim and annual reporting periods beginning after December 15, 2018; early adoption is permitted. The guidance calls for a modified retrospective transition approach under which a cumulative-effect adjustment will be made to retained earnings as of the beginning of the first reporting period in which the guidance is adopted. The adoption of ASU 2017-08 on January 1, 2019 had no material impact on the Company’s consolidated financial statements. In July 2017, the FASB issued ASU 2017-11, Earnings Per Share (Topic 260), Distinguishing Liabilities from Equity (Topic 480) and Derivatives and Hedging (Topic 815): I. Accounting for Certain Financial Instruments with Down Round Features; II. Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Noncontrolling Interests with a Scope Exception , (“ASU 2017-11”). Part I of this update addresses the complexity of accounting for certain financial instruments with down round features. Down round features are features of certain equity-linked instruments (or embedded features) that result in the strike price being reduced on the basis of the pricing of future equity offerings. Current accounting guidance creates cost and complexity for entities that issue financial instruments (such as warrants and convertible instruments) with down round features that require fair value measurement of the entire instrument or conversion option. Part II of this update addresses the difficulty of navigating Topic 480, Distinguishing Liabilities from Equity , because of the existence of extensive pending content in the FASB Accounting Standards Codification. This pending content is the result of the indefinite deferral of accounting requirements about mandatorily redeemable financial instruments of certain nonpublic entities and certain mandatorily redeemable noncontrolling interests. The amendments in Part II of this update do not have an accounting effect. This ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018. The adoption of ASU 2017-11 on January 1, 2019 had no material impact on the Company’s consolidated financial statements. In January 2018, the FASB issued ASU 2018-01, Land Easement Practical Expedient for Transition to Topic 842, (“ASU 2018-01”). This ASU provides an optional transition practical expedient that, if elected, would not require companies to reconsider their accounting for existing or expired land easements before adoption of Topic 842 and that were not previously accounted for as leases under Topic 840. This ASU will be effective January 1, 2019 and early adoption is permitted. The adoption of ASU 2018-01 on January 1, 2019, had no material impact on the Company’s consolidated financial statements. In February 2018, the FASB issued ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220), (“ASU 2018-02”). This ASU allows an entity to elect to reclassify the stranded tax effects related to the Tax Cuts and Jobs Act of 2017 from accumulated other comprehensive income into retained earnings. This ASU will be effective January 1, 2019, and early adoption is permitted. The adoption of ASU 2018-02 on January 1, 2019 had no material impact on the Company’s consolidated financial statements. In July 2018, the FASB issued ASU 2018-09, Codification Improvements , (“ASU 2018-09”). This standard does not prescribe any new accounting guidance, but instead makes minor improvements and clarifications of several different FASB Accounting Standards Codification areas based on comments and suggestions made by various stakeholders. Certain updates are applicable immediately while others provide for a transition period to adopt as part of the next fiscal year beginning after December 15, 2018. The adoption of ASU 2018-09 had no material impact on the Company’s consolidated financial statements. Recent Accounting Pronouncements Pending Adoption In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, (“ASU 2016-13”). The guidance changes the impairment model for most financial assets. The new model uses a forward-looking expected loss method, which will generally result in earlier recognition of allowances for losses. ASU 2016-13 is effective for annual and interim periods beginning after December 15, 2019, and early adoption is permitted for annual and interim periods beginning after December 15, 2018. In November 2018, the FASB issued ASU 2018-19 to clarify that operating lease receivables recorded by lessors are explicitly excluded from the scope of ASU 2016-13. In May 2019, the FASB issued ASU 2019-05 to provide an option to irrevocably elect to measure certain individual financial assets at fair value instead of amortized cost. The Company must apply the amendments in these updates through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. The Company is currently assessing the impact of this standard on the consolidated financial statements. In general, the allowance for credit losses is expected to increase when changing from an incurred loss to expected loss methodology. The models and methodologies that are currently used in estimating the allowance for credit losses are being evaluated to identify the changes necessary to meet the requirements of the new standard. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement, (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement, (“ASU 2018-13”). ASU 2018-13 eliminates, adds and modifies certain disclosure requirements for fair value measurements as part of its disclosure framework project. The standard is effective for all entities for financial statements issued for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted. The Company does not expect the adoption of ASU 2018-02 to have a material impact on its financial statements and related disclosures. In October 2018, the FASB issued ASU 2018-17, Consolidation (Topic 810): Targeted Improvements to Related Party Guidance for Variable Interest Entities, (“ASU 2018-17”). ASU 2018-17 requires reporting entities to consider indirect interests held through related parties under common control on a proportional basis rather than as the equivalent of a direct interest in its entirety for determining whether a decision-making fee is a variable interest. The standard is effective for all entities for financial statements issued for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted. Entities are required to apply the amendments in ASU 2018-17 retrospectively with a cumulative-effect adjustment to retained earnings at the beginning of the earliest period presented. The Company is currently evaluating this guidance to determine the impact it may have on its consolidated financial statements. In April 2019, the FASB issued ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments, (“ASU 2019-04”). ASU 2019-04 clarifies and improves areas of guidance related to the recently issued standards on credit losses (ASU 2016-13), hedging (ASU 2017-12), and recognition and measurement of financial instruments (ASU 2016-01). The amendments generally have the same effective dates as their related standards. If already adopted, the amendments of ASU 2016-01 and ASU 2016-13 are effective for fiscal years beginning after December 15, 2019 and the amendments of ASU 2017-12 are effective as of the beginning of the Company’s next annual reporting period; early adoption is permitted. The Company previously adopted ASU 2016-01 and does not expect the amendments of ASU 2019-04 to have a material impact on its consolidated financial statements. Any new accounting standards not disclosed above that have been issued or proposed by FASB and that do not require adoption until a future date are not expected to have a material impact on the consolidated financial statements upon adoption. |
MORTGAGE LOAN RECEIVABLES (Tabl
MORTGAGE LOAN RECEIVABLES (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Abstract] | |
Schedule of mortgage loan receivables | Outstanding Face Amount Carrying Value Weighted Average Yield (1) Remaining Maturity (years) Mortgage loan receivables held for investment, net, at amortized cost: Mortgage loans held by consolidated subsidiaries: First mortgage loans(2) $ 3,192,160 $ 3,170,788 7.70 % 1.18 Mezzanine loans 148,221 147,602 10.89 % 4.35 Total mortgage loans held by consolidated subsidiaries 3,340,381 3,318,390 7.84 % 1.32 Provision for loan losses N/A (17,900 ) Total mortgage loan receivables held for investment, net, at amortized cost 3,340,381 3,300,490 Mortgage loan receivables held for sale: First mortgage loans 181,905 182,439 5.46 % 9.75 Total $ 3,522,286 $ 3,482,929 7.76 % 1.77 (1) December 31, 2018 LIBOR rates are used to calculate weighted average yield for floating rate loans. (2) Includes amounts relating to consolidated variable interest entities. See Note 10 . Outstanding Face Amount Carrying Value Weighted Average Yield (1) Remaining Maturity (years) Mortgage loan receivables held for investment, net, at amortized cost: Mortgage loans held by consolidated subsidiaries: First mortgage loans(2) $ 3,116,050 $ 3,098,241 7.14 % 1.27 Mezzanine loans 133,661 133,202 10.87 % 3.76 Total mortgage loans held by consolidated subsidiaries 3,249,711 3,231,443 7.29 % 1.37 Provision for loan losses N/A (18,500 ) Total mortgage loan receivables held for investment, net, at amortized cost 3,249,711 3,212,943 Mortgage loan receivables held for sale: First mortgage loans 173,957 174,214 4.59 % 9.68 Total $ 3,423,668 $ 3,387,157 7.19 % 1.81 (1) September 30, 2019 London Interbank Offered Rate (“LIBOR”) rates are used to calculate weighted average yield for floating rate loans. (2) Includes amounts relating to consolidated variable interest entities. See Note 10 . |
Summary of mortgage loan receivables by loan type | For the nine months ended September 30, 2019 and 2018 , the activity in our loan portfolio was as follows ($ in thousands): Mortgage loan receivables held for investment, net, at amortized cost: Mortgage loans held by consolidated subsidiaries Mortgage loans transferred but not considered sold Provision for loan losses Mortgage loan receivables held for sale Balance, December 31, 2018 $ 3,318,390 $ — $ (17,900 ) $ 182,439 Origination of mortgage loan receivables 985,825 — — 554,115 Purchases of mortgage loan receivables — — — 9,934 Repayment of mortgage loan receivables (1,105,506 ) — — (620 ) Proceeds from sales of mortgage loan receivables(1) — (15,504 ) — (558,799 ) Non-cash disposition of loans via foreclosure(2) (17,611 ) — — — Sale of loans, net — — — 38,589 Transfer between held for investment and held for sale(1) 35,940 15,504 — (51,444 ) Accretion/amortization of discount, premium and other fees 14,405 — — — Provision for loan losses — — (600 ) — Balance, September 30, 2019 $ 3,231,443 $ — $ (18,500 ) $ 174,214 (1) During the three months ended March 31, 2019, the Company reclassified from mortgage loan receivables held for sale to mortgage loan receivables held for investment, net, at amortized cost, one loan with an outstanding face amount of $15.4 million , a book value of $15.5 million (fair value at the date of reclassification) and a remaining maturity of 9.8 years, which was sold to the WFCM 2019-C49 securitization trust. Subsequently, the controlling loan interest was sold to the UBS 2019-C16 securitization trust, and as a result, the loan previously sold during the three months ended March 31, 2019 was accounted for as a sale during the six months ended June 30, 2019. (2) Refer to Note 5 Real Estate and Related Lease Intangibles, Net for further detail on foreclosure of real estate. Mortgage loan receivables held for investment, net, at amortized cost: Mortgage loans held by consolidated subsidiaries Provision for loan losses Mortgage loan receivables held for sale Balance, December 31, 2017 $ 3,282,462 $ (4,000 ) $ 230,180 Origination of mortgage loan receivables 1,240,894 — 1,115,218 Repayment of mortgage loan receivables (787,167 ) — (1,324 ) Proceeds from sales of mortgage loan receivables — — (926,402 ) Sale of loans, net(1) — — 12,893 Transfer between held for investment and held for sale(2) 55,403 — (55,403 ) Accretion/amortization of discount, premium and other fees 13,795 — — Provision for loan losses(3) — (13,600 ) — Balance, September 30, 2018 $ 3,805,387 $ (17,600 ) $ 375,162 (1) Includes $0.5 million of realized losses on loans related to lower of cost or market adjustments for the nine months ended September 30, 2018 . (2) During the nine months ended September 30, 2018 , the Company reclassified from mortgage loan receivables held for sale to mortgage loan receivables held for investment, net, at amortized cost, three loans with a combined outstanding face amount of $57.6 million , a combined book value of $55.4 million (fair value at date of reclassification) and a remaining maturity of 2.5 years . The loans had been recorded at lower of cost or market prior to their reclassification. The discount to fair value is the result of an increase in market interest rates since the loans’ origination and not a deterioration in credit of the borrowers or collateral coverage and the Company expects to collect all amounts due under the loans. (3) As further discussed below, during the three and nine months ended September 30, 2018 , the Company recorded asset-specific provisions on collateral dependent loans of $10.0 million and $12.7 million , respectively. In addition. the Company records a portfolio-based, general loan loss provision to provide reserves for expected losses over the remaining portfolio of mortgage loan receivables held for investment. During the three and nine months ended September 30, 2018 , the Company recorded an additional general reserve of $0.3 million and $0.9 million , respectively. |
Schedule of provision for loan losses | Provision for Loan Losses and Non-Accrual Status ($ in thousands) Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Allowance for loan losses at beginning of period $ 18,500 $ 7,300 $ 17,900 $ 4,000 Provision for loan losses — 10,300 600 13,600 Allowance for loan losses at end of period $ 18,500 $ 17,600 $ 18,500 $ 17,600 September 30, 2019 December 31, 2018 Principal balance of loans on non-accrual status(1) $ 37,161 $ 36,850 (1) Represents two of the Company’s loans, which were originated simultaneously as part of a single transaction and had a carrying value of $26.9 million and one loan with a carrying value of $45.0 million , as further discussed below. |
REAL ESTATE SECURITIES (Tables)
REAL ESTATE SECURITIES (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of securities which are classified as available-for-sale | The following is a summary of the Company’s securities at September 30, 2019 and December 31, 2018 ($ in thousands): September 30, 2019 Gross Unrealized Weighted Average Asset Type Outstanding Face Amount Amortized Cost Basis/Purchase Price Gains Losses Carrying Value # of Securities Rating (1) Coupon % Yield % Remaining Duration (years) CMBS(2) $ 1,779,458 $ 1,780,233 $ 9,012 $ (533 ) $ 1,788,712 (3) 139 AAA 3.27 % 3.14 % 2.38 CMBS interest-only(2)(4) 2,139,357 39,961 1,491 (12 ) 41,440 (5) 18 AAA 0.49 % 3.65 % 2.61 GNMA interest-only(4)(6) 113,096 2,202 119 (295 ) 2,026 12 AA+ 0.51 % 9.65 % 2.73 Agency securities(2) 641 652 2 — 654 2 AA+ 2.67 % 1.74 % 1.97 GNMA permanent securities(2) 31,760 31,984 811 — 32,795 6 AA+ 3.92 % 3.27 % 4.55 Corporate bonds(2) 32,088 31,604 768 — 32,372 1 BB- 3.63 % 4.81 % 1.31 Total debt securities $ 4,096,400 $ 1,886,636 $ 12,203 $ (840 ) $ 1,897,999 178 1.75 % 3.17 % 2.39 Equity securities(7) N/A 13,720 125 (388 ) 13,457 3 N/A N/A N/A N/A Total real estate securities $ 4,096,400 $ 1,900,356 $ 12,328 $ (1,228 ) $ 1,911,456 181 (1) 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. (2) CMBS, CMBS interest-only securities, Agency securities, GNMA permanent securities and corporate bonds 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. (3) Includes $11.6 million of restricted securities which are designated as risk retention securities under the Dodd-Frank Act and are therefore subject to transfer restrictions over the term of the securitization trust and are classified as held-to-maturity and reported at amortized cost. (4) The amounts presented represent the principal amount of the mortgage loans outstanding in the pool in which the interest-only securities participate. (5) Includes $0.8 million of restricted securities which are designated as risk retention securities under the Dodd-Frank Act and are therefore subject to transfer restrictions over the term of the securitization trust and are classified as held-to-maturity and reported at amortized cost. (6) Agency interest-only securities are recorded at fair value with changes in fair value recorded in current period earnings. The Company’s Agency interest-only securities are considered to be hybrid financial instruments that contain embedded derivatives. As a result, the Company has elected to account for them as hybrid instruments in their entirety at fair value with changes in fair value recognized in unrealized gain (loss) on Agency interest-only securities in the consolidated statements of income in accordance with ASC 815. (7) The Company has elected to account for equity securities at fair value with changes in fair value recorded in current period earnings. December 31, 2018 Gross Unrealized Weighted Average Asset Type Outstanding Face Amount Amortized Cost Basis Gains Losses Carrying Value # of Securities Rating (1) Coupon % Yield % Remaining Duration (years) CMBS(2) $ 1,258,819 $ 1,257,801 $ 2,477 $ (7,638 ) $ 1,252,640 (3) 138 AAA 3.32 % 3.14 % 2.33 CMBS interest-only(2)(4) 2,373,936 55,534 428 (271 ) 55,691 (5) 19 AAA 0.57 % 2.80 % 2.69 GNMA interest-only(4)(6) 135,932 2,862 93 (307 ) 2,648 12 AA+ 0.51 % 6.30 % 4.11 Agency securities(2) 668 682 — (20 ) 662 2 AA+ 2.73 % 1.83 % 2.36 GNMA permanent securities(2) 32,633 32,889 420 (245 ) 33,064 6 AA+ 3.94 % 3.76 % 5.03 Corporate bonds(2) 55,305 54,257 — (386 ) 53,871 2 BB 4.08 % 5.04 % 2.51 Total debt securities $ 3,857,293 $ 1,404,025 $ 3,418 $ (8,867 ) $ 1,398,576 179 1.54 % 3.19 % 2.40 Equity securities(7) N/A 13,154 — (1,604 ) 11,550 3 N/A N/A N/A N/A Total real estate securities $ 3,857,293 $ 1,417,179 $ 3,418 $ (10,471 ) $ 1,410,126 182 (1) 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. (2) CMBS, CMBS interest-only securities, Agency securities, GNMA permanent securities and corporate bonds 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. (3) Includes $11.3 million of restricted securities which are designated as risk retention securities under the Dodd-Frank Act and are therefore subject to transfer restrictions over the term of the securitization trust and are classified as held-to-maturity and reported at amortized cost. (4) The amounts presented represent the principal amount of the mortgage loans outstanding in the pool in which the interest-only securities participate. (5) Includes $0.9 million of restricted securities which are designated as risk retention securities under the Dodd-Frank Act and are therefore subject to transfer restrictions over the term of the securitization trust and are classified as held-to-maturity and reported at amortized cost. (6) Agency interest-only securities are recorded at fair value with changes in fair value recorded in current period earnings. The Company’s Agency interest-only securities are considered to be hybrid financial instruments that contain embedded derivatives. As a result, the Company accounts for them as hybrid instruments in their entirety at fair value with changes in fair value recognized in unrealized gain (loss) on Agency interest-only securities in the consolidated statements of income in accordance with ASC 815. (7) The Company has elected to account for equity securities at fair value with changes in fair value recorded in current period earnings. |
Schedule of fair value of the Company's securities by remaining maturity based upon expected cash flows | The following is a breakdown of the carrying value of the Company’s debt securities by remaining maturity based upon expected cash flows at September 30, 2019 and December 31, 2018 ($ in thousands): September 30, 2019 Asset Type Within 1 year 1-5 years 5-10 years After 10 years Total CMBS(1) $ 395,377 $ 1,212,074 $ 181,261 $ — $ 1,788,712 CMBS interest-only(1) 645 40,795 — — 41,440 GNMA interest-only(2) 250 1,515 261 — 2,026 Agency securities(1) — 654 — — 654 GNMA permanent securities(1) 344 32,451 — — 32,795 Corporate bonds(1) — 32,372 — — 32,372 Total debt securities $ 396,616 $ 1,319,861 $ 181,522 $ — $ 1,897,999 (1) CMBS, CMBS interest-only securities, Agency securities, GNMA permanent securities and corporate bonds 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. (2) Agency interest-only securities are recorded at fair value with changes in fair value recorded in current period earnings. December 31, 2018 Asset Type Within 1 year 1-5 years 5-10 years After 10 years Total CMBS(1) $ 342,121 $ 772,594 $ 137,925 $ — $ 1,252,640 CMBS interest-only(1) 1,145 54,546 — — 55,691 GNMA interest-only(2) 17 2,276 353 2 2,648 Agency securities(1) — 662 — — 662 GNMA permanent securities(1) 551 1,048 31,465 — 33,064 Corporate bonds(1) — 53,871 — — 53,871 Total debt securities $ 343,834 $ 884,997 $ 169,743 $ 2 $ 1,398,576 (1) CMBS, CMBS interest-only securities, Agency securities, GNMA permanent securities and corporate bonds 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. (2) Agency interest-only securities are recorded at fair value with changes in fair value recorded in current period earnings. |
REAL ESTATE AND RELATED LEASE_2
REAL ESTATE AND RELATED LEASE INTANGIBLES, NET (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Real Estate [Abstract] | |
Schedule of real estate properties by category | The following tables present additional detail related to our real estate portfolio, net, including foreclosed properties ($ in thousands): September 30, 2019 December 31, 2018 Land $ 197,682 $ 195,644 Building 820,783 814,314 In-place leases and other intangibles 159,721 162,002 Less: Accumulated depreciation and amortization (196,853 ) (173,938 ) Real estate and related lease intangibles, net $ 981,333 $ 998,022 Below market lease intangibles, net (other liabilities) $ (39,087 ) $ (40,367 ) |
Schedule of depreciation and amortization expense recorded | The following table presents depreciation and amortization expense on real estate recorded by the Company ($ in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Depreciation expense(1) $ 7,394 $ 8,063 $ 22,776 $ 24,058 Amortization expense 1,612 2,336 6,342 7,782 Total real estate depreciation and amortization expense $ 9,006 $ 10,399 $ 29,118 $ 31,840 (1) Depreciation expense on the consolidated statements of income also includes $24 thousand and $18 thousand of depreciation on corporate fixed assets for the three months ended September 30, 2019 and 2018 , respectively, and $74 thousand and $56 thousand of depreciation on corporate fixed assets for the nine months ended September 30, 2019 and 2018 , respectively. |
Schedule of lease intangible assets | The Company’s intangible assets are comprised of in-place leases, favorable leases compared to market leases and other intangibles. The following tables present additional detail related to our intangible assets ($ in thousands): September 30, 2019 December 31, 2018 Gross intangible assets(1) $ 159,721 $ 162,002 Accumulated amortization 61,056 57,712 Net intangible assets $ 98,665 $ 104,290 (1) Includes $4.6 million and $5.5 million of unamortized favorable lease intangibles which are included in real estate and related lease intangibles, net on the consolidated balance sheets as of September 30, 2019 and December 31, 2018 , respectively. Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Reduction in operating lease income for amortization of above market lease intangibles acquired $ (94 ) $ (155 ) $ (727 ) $ (535 ) Increase in operating lease income for amortization of below market lease intangibles acquired 564 500 1,594 1,821 |
Schedule of expected amortization expense related to the acquired in-place lease intangibles, for property owned | The following table presents expected adjustment to operating lease income and expected amortization expense during the next five years and thereafter related to the above and below market leases and acquired in-place lease and other intangibles for property owned as of September 30, 2019 ($ in thousands): Period Ending December 31, Adjustment to Operating Lease Income Amortization Expense 2019 (last 3 months) $ 263 $ 1,601 2020 1,054 6,403 2021 1,054 6,232 2022 1,054 6,232 2023 1,054 6,232 Thereafter 29,981 67,233 Total $ 34,460 $ 93,933 |
Schedule of contractual future minimum rent under leases | The following is a schedule of non-cancellable, contractual, future minimum rent under leases (excluding property operating expenses paid directly by tenant under net leases) at September 30, 2019 ($ in thousands): Period Ending December 31, Amount 2019 (last 3 months) $ 21,347 2020 80,401 2021 69,055 2022 65,936 2023 64,106 Thereafter 520,897 Total $ 821,742 |
Schedule of real estate properties acquired | During the nine months ended September 30, 2018 , the Company acquired the following properties ($ in thousands): Acquisition Date Type Primary Location(s) Purchase Price Ownership Interest (1) March 2018 Diversified(2) Lithia Springs, GA $ 24,466 70.6% April 2018 Net Lease Kirbyville, MO 1,156 100.0% April 2018 Net Lease Gladwin, MI 1,171 100.0% April 2018 Net Lease Foley, MN 1,176 100.0% April 2018 Net Lease Moscow Mills, MO 1,237 100.0% April 2018 Net Lease Wonder Lake, IL 1,255 100.0% May 2018 Diversified(3) Isla Vista, CA 85,087 75.0% Total real estate acquisitions $ 115,548 (1) Properties were consolidated as of acquisition date. (2) Joint venture partner contributed $2.9 million to the partnership. (3) Joint venture partner contributed $4.6 million to the partnership. During the nine months ended September 30, 2019 , the Company acquired the following properties ($ in thousands): Acquisition Date Type Primary Location(s) Purchase Price/Fair Value on the Date of Foreclosure Ownership Interest (1) Purchases of real estate February 2019 Net Lease Houghton Lake, MI $ 1,242 100.0% February 2019 Net Lease Trenton, MO 1,164 100.0% April 2019 Net Lease Centralia, IL 1,242 100.0% June 2019 Net Lease Fayette, MO 1,423 100.0% July 2019 Net Lease Dexter, MO 1,150 100.0% July 2019 Net Lease Caledonia, MI 1,199 100.0% August 2019 Net Lease Poseyville, IN 1,220 100.0% September 2019 Net Lease Chillicothe, IL 1,445 100.0% September 2019 Net Lease Sullivan, IL 1,496 100.0% September 2019 Net Lease Becker, MN 1,185 100.0% September 2019 Net Lease Adrian, MO 1,138 100.0% Total purchases of real estate 13,904 Real estate acquired via foreclosure February 2019 Diversified Omaha, NE 18,200 100.0% Total real estate acquired via foreclosure 18,200 Total real estate acquisitions $ 32,104 (1) Properties were consolidated as of acquisition date. The purchase prices were allocated to the asset acquisitions during the nine months ended September 30, 2019 , as follows ($ in thousands): Purchase Price Allocation Land $ 4,969 Building 25,571 Intangibles 2,309 Below Market Lease Intangibles (745 ) Total purchase price $ 32,104 The purchase prices were allocated to the asset acquisitions during the nine months ended September 30, 2018 , as follows ($ in thousands): Purchase Price Allocation Land $ 40,019 Building 73,794 Intangibles 2,065 Below Market Lease Intangibles (330 ) Total purchase price $ 115,548 |
Schedule of properties sold | The Company sold the following properties during the nine months ended September 30, 2019 ($ in thousands): Sales Date Type Primary Location(s) Net Sales Proceeds Net Book Value Realized Gain/(Loss) Properties Units Sold Units Remaining N/A Condominium Las Vegas, NV $ — $ — $ — — — 1 Various Condominium Miami, FL 4,195 3,796 399 — 14 8 April 2019 Diversified Wayne, NJ 1,729 4,799 (3,070 ) 1 — — May 2019 Diversified Grand Rapids, MI 10,019 8,254 1,765 1 — — August 2019 Diversified Grand Rapids, MI 6,970 4,920 2,050 1 — — Totals $ 22,913 $ 21,769 $ 1,144 The Company sold the following properties during the nine months ended September 30, 2018 ($ in thousands): Sales Date Type Primary Location(s) Net Sales Proceeds Net Book Value Realized Gain/(Loss) Properties Units Sold Units Remaining Various Condominium Las Vegas, NV $ 6,228 $ 3,116 $ 3,112 — 8 5 Various Condominium Miami, FL 4,844 3,987 857 — 18 30 March 2018 Diversified El Monte, CA 71,807 52,610 19,197 (1) 1 — — March 2018 Diversified Richmond, VA 20,966 11,370 9,596 (2) 1 — — September 2018 Diversified St. Paul, MN 109,275 47,627 61,648 (3) 4 — — Totals $ 213,120 $ 118,710 $ 94,410 (1) This property had a third party investor. The third party investor has been allocated $7.0 million of the realized gain, which is included in net (income) loss attributable to noncontrolling interest in consolidated joint ventures, for the nine months ended September 30, 2018 , on the consolidated statements of income. (2) This property had a third party investor. The third party investor has been allocated $0.4 million of the realized gain, which is included in net (income) loss attributable to noncontrolling interest in consolidated joint ventures, for the nine months ended September 30, 2018 , on the consolidated statements of income. (3) This property had a third party investor. The third party investor has been allocated $7.9 million of the realized gain, which is included in net (income) loss attributable to noncontrolling interest in consolidated joint ventures, for the nine months ended September 30, 2018 , on the consolidated statements of income. |
INVESTMENT IN AND ADVANCES TO_2
INVESTMENT IN AND ADVANCES TO UNCONSOLIDATED JOINT VENTURES (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Summary of the Company's investments in unconsolidated joint ventures, which the entity accounts for using the equity method | The following is a summary of the Company’s investments in and advances to unconsolidated joint ventures, which we account for using the equity method, as of September 30, 2019 and December 31, 2018 ($ in thousands): Entity September 30, 2019 December 31, 2018 Grace Lake JV, LLC $ 3,799 $ 5,316 24 Second Avenue Holdings LLC 47,620 35,038 Investment in unconsolidated joint ventures $ 51,419 $ 40,354 |
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 (losses) based on its ownership interests from investment in unconsolidated joint ventures for the three and nine months ended September 30, 2019 and 2018 ($ in thousands): Three Months Ended September 30, Nine Months Ended September 30, Entity 2019 2018 2019 2018 Grace Lake JV, LLC $ 517 $ 605 $ 1,549 $ 1,138 24 Second Avenue Holdings LLC 577 (204 ) 2,068 (672 ) Earnings (loss) from investment in unconsolidated joint ventures $ 1,094 $ 401 $ 3,617 $ 466 |
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 financial position of the unconsolidated joint ventures in which the Company had investment interests as of September 30, 2019 and December 31, 2018 ($ in thousands): September 30, 2019 December 31, 2018 Total assets $ 123,871 $ 167,837 Total liabilities 80,333 116,667 Partners’/members’ capital $ 43,538 $ 51,170 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 nine months ended September 30, 2019 and 2018 ($ in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Total revenues $ 3,915 $ 4,351 $ 14,945 $ 13,671 Total expenses 4,595 3,415 12,029 9,788 Net income (loss) $ (680 ) $ 936 $ 2,916 $ 3,883 |
DEBT OBLIGATIONS, NET (Tables)
DEBT OBLIGATIONS, NET (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of debt obligations | The details of the Company’s debt obligations at September 30, 2019 and December 31, 2018 are as follows ($ in thousands): September 30, 2019 Debt Obligations Committed Financing Debt Obligations Outstanding Committed but Unfunded Interest Rate at September 30, 2019(1) Current Term Maturity Remaining Extension Options Eligible Collateral Carrying Amount of Collateral Fair Value of Collateral Committed Loan Repurchase Facility $ 600,000 $ 191,031 $ 408,969 3.78% - 4.28% 2/24/2022 (2) (3) $ 283,517 $ 283,746 Committed Loan Repurchase Facility 350,000 63,996 286,004 4.25% - 4.60% 5/24/2020 (4) (5) 100,354 102,616 Committed Loan Repurchase Facility 300,000 211,350 88,650 4.00% - 4.53% 4/10/2020 (6) (7) 343,448 343,448 Committed Loan Repurchase Facility 300,000 116,043 183,957 3.81% - 4.06% 5/6/2021 (8) (3) 174,001 174,353 Committed Loan Repurchase Facility 100,000 87,174 12,826 4.02% - 4.28% 7/20/2021 (9) (3) 135,373 135,606 Committed Loan Repurchase Facility 100,000 90,927 9,073 4.03% 3/26/2020 (10) (11) 121,899 121,899 Total Committed Loan Repurchase Facilities 1,750,000 760,521 989,479 1,158,592 1,161,668 Committed Securities Repurchase Facility 400,000 85,457 314,543 2.38% - 2.87% 3/4/2021 N/A (12) 103,547 103,547 Uncommitted Securities Repurchase Facility N/A (12) 940,070 N/A (13) 2.45% - 3.78% 10/2019 - 12/2019 N/A (12) 1,047,663 1,047,663 (14) Total Repurchase Facilities 2,150,000 1,786,048 1,304,022 2,309,802 2,312,878 Revolving Credit Facility 266,430 — 266,430 NA 2/11/2020 (15) N/A (16) N/A (16) N/A (16) Mortgage Loan Financing 723,313 723,313 — 4.25% - 6.75% 2020 - 2029(17) N/A (18) 902,656 1,093,952 (19) CLO Debt 117,760 117,760 (20) — 3.40% - 5.62% 2021-2034 N/A (21) 274,149 274,523 Borrowings from the FHLB 1,945,795 1,076,449 869,346 1.47% - 2.95% 2019 - 2024 N/A (22) 1,411,022 1,422,246 (23) Senior Unsecured Notes 1,166,201 1,157,117 (24) — 5.250% - 5.875% 2021 - 2025 N/A N/A (25) N/A (25) N/A (25) Total Debt Obligations, Net $ 6,369,499 $ 4,860,687 $ 2,439,798 $ 4,897,629 $ 5,103,599 (1) September 2019 LIBOR rates are used to calculate interest rates for floating rate debt. (2) Two additional 12 -month periods at Company’s option. No new advances are permitted after the initial maturity date. (3) First mortgage commercial real estate loans and senior and pari passu interests therein. It does not include the real estate collateralizing such loans. (4) One additional 12 -month period at Company’s option. (5) First mortgage commercial real estate loans. It does not include the real estate collateralizing such loans. (6) One additional 364 -day period with Bank’s consent. (7) First mortgage and mezzanine commercial real estate loans and senior and pari passu interests therein. It does not include the real estate collateralizing such loans. (8) One additional 12 -month extension period and two additional 6 -month extension periods at Company’s option. (9) One additional 12 -month extension period at Company’s option. No new advances are permitted after the initial maturity date. (10) The Company may extend periodically with lender’s consent. At no time can the maturity of the facility exceed 364 days from the date of determination. (11) First mortgage, junior and mezzanine commercial real estate loans, and certain senior and/or pari passu interests therein. (12) Commercial real estate securities. It does not include the real estate collateralizing such securities. (13) Represents uncommitted securities repurchase facilities for which there is no committed amount subject to future advances. (14) Includes $2.3 million of restricted securities under the risk retention rules of Dodd-Frank Act. These securities are accounted for as held-to-maturity and recorded at amortized cost basis. (15) Three additional 12 -month periods at Company’s option. (16) The obligations under the Revolving Credit Facility are guaranteed by the Company and certain of its subsidiaries and secured by equity pledges in certain Company subsidiaries. (17) Anticipated repayment dates. (18) Certain of our real estate investments serve as collateral for our mortgage loan financing. (19) Using undepreciated carrying value of commercial real estate to approximate fair value. (20) Presented net of unamortized debt issuance costs of $0.4 million at September 30, 2019 . (21) First mortgage commercial real estate loans and pari passu interests therein. It does not include the real estate collateralizing such loans. (22) First mortgage commercial real estate loans and investment grade commercial real estate securities. It does not include the real estate collateralizing such loans and securities. (23) Includes $9.9 million of restricted securities under the risk retention rules of Dodd-Frank Act. These securities are accounted for as held-to-maturity and recorded at amortized cost basis. (24) Presented net of unamortized debt issuance costs of $9.1 million at September 30, 2019 . (25) The obligations under the senior unsecured notes are guaranteed by the Company and certain of its subsidiaries. December 31, 2018 Debt Obligations Committed Financing Debt Obligations Outstanding Committed but Unfunded Interest Rate at December 31, 2018(1) Current Term Maturity Remaining Extension Options Eligible Collateral Carrying Amount of Collateral Fair Value of Collateral Committed Loan Repurchase Facility $ 600,000 $ 180,597 $ 419,403 4.21% - 4.96% 10/1/2020 (2) (3) $ 262,642 $ 261,602 Committed Loan Repurchase Facility 350,000 63,679 286,321 4.68% - 4.98% 5/24/2019 (4) (5) 87,385 88,762 Committed Loan Repurchase Facility 300,000 120,631 179,369 4.46% - 4.96% 4/7/2019 (6) (7) 204,747 205,219 Committed Loan Repurchase Facility 300,000 79,886 220,114 4.44% - 4.94% 5/6/2021 (8) (3) 117,382 117,366 Committed Loan Repurchase Facility 100,000 52,738 47,262 4.58% - 4.96% 7/20/2021 (9) (3) 72,154 72,154 Committed Loan Repurchase Facility 100,000 — 100,000 NA 12/26/2019 (10) (11) — — Total Committed Loan Repurchase Facilities 1,750,000 497,531 1,252,469 744,310 745,103 Committed Securities Repurchase Facility 400,000 — 400,000 NA 9/30/2019 N/A (12) — — Uncommitted Securities Repurchase Facility N/A (12) 166,154 N/A (13) 2.99% - 4.55% 1/2019 - 3/2019 N/A (12) 187,803 187,803 (14)(15) Total Repurchase Facilities 2,150,000 663,685 1,652,469 932,113 932,906 Revolving Credit Facility 266,430 — 266,430 NA 2/11/2019 (16) N/A (17) N/A (17) N/A (17) Mortgage Loan Financing 743,902 743,902 — 4.25% - 7.00% 2020 - 2028(18) N/A (19) 939,362 1,108,968 (20) CLO Debt 601,543 601,543 (21 ) — 3.34% - 6.06% 2021-2034 N/A (22) 710,502 710,737 Participation Financing - Mortgage Loan Receivable 2,453 2,453 — 17.00% 6/6/2019 N/A (3) 2,453 2,453 Borrowings from the FHLB 1,933,522 1,286,000 647,522 1.18% - 3.01% 2019 - 2024 N/A (23) 1,652,952 1,655,150 (24) Senior Unsecured Notes 1,166,201 1,154,991 (25) — 5.250% - 5.875% 2021 - 2025 N/A N/A (26) N/A (26) N/A (26) Total Debt Obligations $ 6,864,051 $ 4,452,574 $ 2,566,421 $ 4,237,382 $ 4,410,214 (1) December 31, 2018 LIBOR rates are used to calculate interest rates for floating rate debt. (2) Two additional 12 -month periods at Company’s option. No new advances are permitted after the initial maturity date. (3) First mortgage commercial real estate loans and senior and pari passu interests therein. It does not include the real estate collateralizing such loans. (4) Two additional 12 -month periods at Company’s option. (5) First mortgage commercial real estate loans. It does not include the real estate collateralizing such loans. (6) One additional 364 -day periods at Company’s option and one additional 364 -day period with Bank’s consent. (7) First mortgage and mezzanine commercial real estate loans and senior pari passu interests therein. It does not include the real estate collateralizing such loans. (8) One additional 12 -month extension period and two additional 6 -month extension periods at Company’s option. (9) One additional 12 -month extension period at Company’s option. No new advances are permitted after the initial maturity date. (10) The Company may extend periodically with lender’s consent. At no time can the maturity of the facility exceed 364 days from the date of determination. (11) First mortgage, junior and mezzanine commercial real estate loans, and certain senior and/or pari passu interests therein. (12) Commercial real estate securities. It does not include the real estate collateralizing such securities. (13) Represents uncommitted securities repurchase facilities for which there is no committed amount subject to future advances. (14) Includes $3.0 million of restricted securities under the risk retention rules of Dodd-Frank Act. These securities are accounted for as held-to-maturity and recorded at amortized cost basis. (15) Includes $6.0 million of securities purchased in the secondary market of the Company’s October 2017 CLO issuance. These securities are not included in real estate securities but were rather considered a partial retirement of CLO debt. (16) Four additional 12 -month periods at Company’s option. (17) The obligations under the Revolving Credit Facility are guaranteed by the Company and certain of its subsidiaries and secured by equity pledges in certain Company subsidiaries. (18) Anticipated repayment dates. (19) Certain of our real estate investments serve as collateral for our mortgage loan financing. (20) Using undepreciated carrying value of commercial real estate to approximate fair value. (21) Presented net of unamortized debt issuance costs of $2.6 million at December 31, 2018 . (22) First mortgage commercial real estate loans and pari passu interests therein. It does not include the real estate collateralizing such loans. (23) First mortgage commercial real estate loans and investment grade commercial real estate securities. It does not include the real estate collateralizing such loans and securities. (24) Includes $9.7 million of restricted securities under the risk retention rules of Dodd-Frank Act. These securities are accounted for as held-to-maturity and recorded at amortized cost basis. (25) Presented net of unamortized debt issuance costs of $11.2 million at December 31, 2018 . (26) The obligations under the senior unsecured notes are guaranteed by the Company and certain of its subsidiaries. |
Schedule of contractual payments under all borrowings by maturity | The following schedule reflects the Company’s contractual payments under all borrowings by maturity ($ in thousands): Period ending December 31, Borrowings by Maturity(1) 2019 (last 3 months) $ 1,039,597 2020 1,052,894 2021 876,649 2022 655,706 2023 559,422 Thereafter 680,935 Subtotal 4,865,203 Debt issuance costs included in senior unsecured notes (9,084 ) Debt issuance costs included in CLO debt (394 ) Debt issuance costs included in mortgage loan financing (380 ) Premiums included in mortgage loan financing(2) 5,342 Total $ 4,860,687 (1) Contractual payments under current maturities, some of which are subject to extensions. The maturities listed above for 2019 relate to debt obligations that are subject to existing Company controlled extension options for one or more additional one year periods or could be refinanced by other existing facilities as of September 30, 2019 . (2) Deferred gains on intercompany loans, secured by our own real estate, sold into securitizations. These premiums are amortized as a reduction to interest expense. |
DERIVATIVE INSTRUMENTS (Tables)
DERIVATIVE INSTRUMENTS (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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 September 30, 2019 and December 31, 2018 ($ in thousands): September 30, 2019 Fair Value Remaining Maturity (years) Contract Type Notional Asset(1) Liability(1) Caps 1 Month LIBOR $ 69,571 $ — $ — 0.61 Futures 5-year Swap 49,200 — 20 0.25 10-year Swap 149,500 — 61 0.25 5-year U.S. Treasury Note 2,200 — 1 0.25 Total futures 200,900 — 82 Credit derivatives S&P 500 Put Options 6,000 22 — 0.30 Total credit derivatives 6,000 22 — Total derivatives $ 276,471 $ 22 $ 82 (1) Shown as derivative instruments, at fair value, in the accompanying consolidated balance sheets. December 31, 2018 Fair Value Remaining Maturity (years) Contract Type Notional Asset(1) Liability(1) Caps 1MO LIBOR $ 69,571 $ — $ — 1.35 Futures 5-year Swap $ 274,900 $ — $ 526 0.25 10-year Swap 227,700 — 436 0.25 5-year U.S. Treasury Note 6,800 — 13 0.25 Total futures 509,400 — 975 Total derivatives $ 578,971 $ — $ 975 (1) Shown as derivative instruments, at fair value, in the accompanying 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 consolidated statements of operations for the three and nine months ended September 30, 2019 and 2018 ($ in thousands): Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 Unrealized Gain/(Loss) Realized Gain/(Loss) Net Result from Derivative Transactions Unrealized Gain/(Loss) Realized Gain/(Loss) Net Result from Derivative Transactions Contract Type Futures $ (618 ) $ (8,868 ) $ (9,486 ) $ 892 $ (36,761 ) $ (35,869 ) Credit Derivatives (3 ) 24 21 (3 ) (84 ) (87 ) Total $ (621 ) $ (8,844 ) $ (9,465 ) $ 889 $ (36,845 ) $ (35,956 ) Three Months Ended September 30, 2018 Nine Months Ended September 30, 2018 Unrealized Gain/(Loss) Realized Gain/(Loss) Net Result from Derivative Transactions Unrealized Gain/(Loss) Realized Gain/(Loss) Net Result from Derivative Transactions Contract Type Futures $ (940 ) $ 8,099 $ 7,159 $ (52 ) $ 28,985 $ 28,933 Swaps — — — 1,403 (848 ) 555 Credit Derivatives (44 ) — (44 ) 5 (337 ) (332 ) Total $ (984 ) $ 8,099 $ 7,115 $ 1,356 $ 27,800 $ 29,156 |
OFFSETTING ASSETS AND LIABILI_2
OFFSETTING ASSETS AND LIABILITIES (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Offsetting [Abstract] | |
Schedule of offsetting of financial assets | As of September 30, 2019 Offsetting of Financial Assets and Derivative Assets ($ in thousands) Description Gross amounts of recognized assets Gross amounts offset in the balance sheet Net amounts of assets presented in the balance sheet Gross amounts not offset in the balance sheet Net amount Financial instruments Cash collateral received/(posted)(1) Derivatives $ 22 $ — $ 22 $ — $ — $ 22 Total $ 22 $ — $ 22 $ — $ — $ 22 (1) Included in restricted cash on consolidated balance sheets. |
Schedule of offsetting of financial liabilities | As of December 31, 2018 Offsetting of Financial Liabilities and Derivative Liabilities ($ in thousands) Description Gross amounts of recognized liabilities Gross amounts offset in the balance sheet Net amounts of liabilities presented in the balance sheet Gross amounts not offset in the balance sheet Net amount Financial instruments collateral Cash collateral posted/(received) Derivatives $ 975 $ — $ 975 $ — $ 975 $ — Repurchase agreements 663,685 — 663,685 663,685 — — Total $ 664,660 $ — $ 664,660 $ 663,685 $ 975 $ — (1) Included in restricted cash on consolidated balance sheets. As of September 30, 2019 Offsetting of Financial Liabilities and Derivative Liabilities ($ in thousands) Description Gross amounts of recognized liabilities Gross amounts offset in the balance sheet Net amounts of liabilities presented in the balance sheet Gross amounts not offset in the balance sheet Net amount Financial instruments collateral Cash collateral posted/(received)(1) Derivatives $ 82 $ — $ 82 $ — $ 82 $ — Repurchase agreements $ 1,786,048 $ — $ 1,786,048 $ 1,786,048 $ — $ — Total $ 1,786,130 $ — $ 1,786,130 $ 1,786,048 $ 82 $ — (1) Included in restricted cash on consolidated balance sheets. |
CONSOLIDATED VARIABLE INTERES_2
CONSOLIDATED VARIABLE INTEREST ENTITIES (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Variable Interest Entities | In addition, the Operating Partnership consolidates two collateralized loan obligation (“CLO”) VIEs with the following aggregate balance sheets ($ in thousands): September 30, 2019 December 31, 2018 Notes 3 & 7 Notes 3 & 7 Mortgage loan receivables held for investment, net, at amortized cost $ 274,149 $ 710,502 Accrued interest receivable 1,363 3,921 Other assets(1) — 81,390 Total assets $ 275,512 $ 795,813 Senior and unsecured debt obligations $ 117,760 $ 607,440 Accrued expenses 306 1,471 Other liabilities 2 2 Total liabilities 118,068 608,913 Net equity in VIEs (eliminated in consolidation) 157,444 186,900 Total equity 157,444 186,900 Total liabilities and equity $ 275,512 $ 795,813 (1) |
EQUITY STRUCTURE AND ACCOUNTS (
EQUITY STRUCTURE AND ACCOUNTS (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
Common stock repurchase activity | The following table is a summary of the Company’s repurchase activity of its Class A common stock during the nine months ended September 30, 2019 and 2018 ($ in thousands): Shares Amount(1) Authorizations remaining as of December 31, 2018 $ 41,769 Additional authorizations — Repurchases paid 40,065 (637 ) Repurchases unsettled — Authorizations remaining as of September 30, 2019 $ 41,132 (1) Amount excludes commissions paid associated with share repurchases. Shares Amount(1) Authorizations remaining as of December 31, 2017 $ 41,769 Additional authorizations — Repurchases paid — — Repurchases unsettled — Authorizations remaining as of September 30, 2018 $ 41,769 (1) Amount excludes commissions paid associated with share repurchases. |
Schedule of dividends declared and paid | The following table presents dividends declared (on a per share basis) of Class A common stock for the nine months ended September 30, 2019 and 2018 : Declaration Date Dividend per Share February 27, 2019 $ 0.340 May 30, 2019 0.340 August 22, 2019 0.340 Total $ 1.020 February 27, 2018 $ 0.315 May 30, 2018 0.325 September 5, 2018 0.325 Total $ 0.965 |
Schedule of accumulated other comprehensive Income | The following table presents changes in accumulated other comprehensive income related to the cumulative difference between the fair market value and the amortized cost basis of securities classified as available for sale for the nine months ended September 30, 2019 and 2018 ($ in thousands): Accumulated Other Comprehensive Income (Loss) Accumulated Other Comprehensive Income (Loss) of Noncontrolling Interests Total Accumulated Other Comprehensive Income (Loss) December 31, 2018 $ (4,649 ) $ (588 ) $ (5,237 ) Other comprehensive income (loss) 14,935 1,840 16,775 Exchange of noncontrolling interest for common stock 64 (64 ) — Rebalancing of ownership percentage between Company and Operating Partnership 17 (17 ) — September 30, 2019 $ 10,367 $ 1,171 $ 11,538 Accumulated Other Comprehensive Income (Loss) Accumulated Other Comprehensive Income (Loss) of Noncontrolling Interests Total Accumulated Other Comprehensive Income (Loss) December 31, 2017 $ (212 ) $ 116 $ (96 ) Other comprehensive income (loss) (8,230 ) (1,428 ) (9,658 ) Exchange of noncontrolling interest for common stock (167 ) 167 — Rebalancing of ownership percentage between Company and Operating Partnership 27 (27 ) — September 30, 2018 $ (8,582 ) $ (1,172 ) $ (9,754 ) |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of the Company's net income and weighted average shares outstanding | The Company’s net income (loss) and weighted average shares outstanding for the three and nine months ended September 30, 2019 and 2018 consist of the following: Three Months Ended September 30, Nine Months Ended September 30, ($ in thousands except share amounts) 2019 2018 2019 2018 Basic Net income (loss) available for Class A common shareholders $ 27,576 $ 66,630 $ 81,996 $ 155,911 Diluted Net income (loss) available for Class A common shareholders $ 27,576 $ 74,038 $ 81,996 $ 177,875 Weighted average shares outstanding Basic 106,004,152 96,935,986 105,264,752 96,317,513 Diluted 106,603,713 110,650,253 106,232,581 110,482,991 |
Schedule of calculation of basic and diluted net income per share amounts | Three Months Ended September 30, Nine Months Ended September 30, (In thousands except share amounts) 2019 2018 2019 2018 Basic Net Income (Loss) Per Share of Class A Common Stock Numerator: Net income (loss) attributable to Class A common shareholders $ 27,576 $ 66,630 $ 81,996 $ 155,911 Denominator: Weighted average number of shares of Class A common stock outstanding 106,004,152 96,935,986 105,264,752 96,317,513 Basic net income (loss) per share of Class A common stock $ 0.26 $ 0.69 $ 0.78 $ 1.62 Diluted Net Income (Loss) Per Share of Class A Common Stock Numerator: Net income (loss) attributable to Class A common shareholders $ 27,576 $ 66,630 $ 81,996 $ 155,911 Add (deduct) - dilutive effect of: Amounts attributable to operating partnership’s share of Ladder Capital Corp net income (loss) — 8,991 — 22,786 Additional corporate tax (expense) benefit — (1,583 ) — (822 ) Diluted net income (loss) attributable to Class A common shareholders 27,576 74,038 81,996 177,875 Denominator: Basic weighted average number of shares of Class A common stock outstanding 106,004,152 96,935,986 105,264,752 96,317,513 Add - dilutive effect of: Shares issuable relating to converted Class B common shareholders — 13,202,202 — 13,800,597 Incremental shares of unvested Class A restricted stock 599,561 512,065 967,829 364,881 Diluted weighted average number of shares of Class A common stock outstanding 106,603,713 110,650,253 106,232,581 110,482,991 Diluted net income (loss) per share of Class A common stock $ 0.26 $ 0.67 $ 0.77 $ 1.61 (1) For three and nine months ended September 30, 2019 , shares issuable relating to converted Class B common shareholders are excluded from the calculation of diluted EPS as the inclusion of such potential common shares in the calculation would be anti-dilutive. |
STOCK BASED AND OTHER COMPENS_2
STOCK BASED AND OTHER COMPENSATION PLANS (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Stock based compensation plans summary | The following table summarizes the impact on the consolidated statement of operations of the various stock based compensation plans described in this note ($ in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Stock Based Compensation Expense: Annual Incentive Awards Granted in 2015 with Respect to 2014 Performance $ — $ — $ — $ 172 Annual Incentive Awards Granted in 2016 with Respect to 2015 Performance — 323 131 971 Annual Incentive Awards Granted in 2017 with Respect to 2016 Performance(1) 280 524 955 1,655 Other 2017 Restricted Stock Awards(1) 25 76 102 257 Annual Incentive Awards Granted in 2017 with Respect to 2017 Performance(1) 596 1,122 1,961 3,325 2018 Restricted Stock Awards — 95 32 230 Other 2018 Restricted Stock Awards(1) 11 9 31 12 Annual Incentive Awards Granted in 2019 with Respect to 2018 Performance(1) 2,509 — 14,804 — 2019 Restricted Stock Awards 148 — 297 — Other Employee/Director Awards 6 13 23 45 Total Stock Based Compensation Expense $ 3,575 $ 2,162 $ 18,336 $ 6,667 Phantom Equity Investment Plan $ 343 $ — $ 1,047 $ — Ladder Capital Corp Deferred Compensation Plan $ — $ 601 $ — $ 1,519 Bonus Expense $ 6,533 $ 9,210 $ 21,035 $ 26,772 (1) Includes immediate vesting of retirement eligible employees, including Brian Harris, our Chief Executive Officer. |
Summary of the grants | A summary of the grants is presented below: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Number Weighted Per Share Number Weighted Number Weighted Number Weighted Grants - Class A Common Stock (restricted) 23,443 $ 16.58 4,720 $ 15.89 1,569,694 $ 17.54 33,656 $ 14.86 Grants - Class A Common Stock (restricted) dividends — — — — 11,113 16.61 — — Stock Options — — — — 12,073 — — — |
Schedule of nonvested shares activity | The table below presents the number of unvested shares and outstanding stock options at September 30, 2018 and changes during 2018 of the Class A Common stock and Stock Options of Ladder Capital Corp granted under the 2014 Omnibus Incentive Plan: Restricted Stock Stock Options Nonvested/Outstanding at December 31, 2017 1,252,365 982,135 Granted 33,656 — Exercised — Vested (138,216 ) Forfeited (26,061 ) — Expired — Nonvested/Outstanding at September 30, 2018 1,121,744 982,135 Exercisable at September 30, 2018 929,701 The table below presents the number of unvested shares and outstanding stock options at September 30, 2019 and changes during 2019 of the Class A Common stock and Stock Options of Ladder Capital Corp granted under the 2014 Omnibus Incentive Plan: Restricted Stock Stock Options Nonvested/Outstanding at December 31, 2018 1,118,194 982,135 Granted 1,580,807 12,073 Exercised — Vested (1,122,107 ) Forfeited (8,702 ) — Expired — Nonvested/Outstanding at September 30, 2019 1,568,192 994,208 Exercisable at September 30, 2019 994,208 |
FAIR VALUE OF FINANCIAL INSTR_2
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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 September 30, 2019 and December 31, 2018 are as follows ($ in thousands): September 30, 2019 Weighted Average Outstanding Face Amount Amortized Cost Basis/Purchase Price Fair Value Fair Value Method Yield % Remaining Maturity/Duration (years) Assets: CMBS(1) $ 1,779,458 $ 1,780,233 $ 1,788,712 Internal model, third-party inputs 3.14 % 2.38 CMBS interest-only(1) 2,139,357 (2) 39,961 41,440 Internal model, third-party inputs 3.65 % 2.61 GNMA interest-only(3) 113,096 (2) 2,202 2,026 Internal model, third-party inputs 9.65 % 2.73 Agency securities(1) 641 652 654 Internal model, third-party inputs 1.74 % 1.97 GNMA permanent securities(1) 31,760 31,984 32,795 Internal model, third-party inputs 3.27 % 4.55 Corporate bonds(1) 32,088 31,604 32,372 Internal model, third-party inputs 4.81 % 1.31 Equity securities(3) N/A 13,720 13,457 Observable market prices N/A N/A Mortgage loan receivables held for investment, net, at amortized cost: Mortgage loan receivables held for investment, net, at amortized cost 3,249,711 3,231,443 3,249,383 Discounted Cash Flow(4) 7.29 % 1.37 Provision for loan losses N/A (18,500 ) (18,500 ) (5) N/A N/A Mortgage loan receivables held for sale 173,957 174,214 182,716 Internal model, third-party inputs(6) 4.59 % 9.68 FHLB stock(7) 61,619 61,619 61,619 (7) 5.50 % N/A Nonhedge derivatives(1)(8) 6,000 N/A 22 Counterparty quotations N/A 0.30 Liabilities: Repurchase agreements - short-term 1,486,049 1,486,049 1,486,049 Discounted Cash Flow(9) 2.65 % 0.18 Repurchase agreements - long-term 299,999 299,999 299,999 Discounted Cash Flow(10) 3.20 % 1.28 Mortgage loan financing 718,351 723,313 748,489 Discounted Cash Flow(10) 4.96 % 1.51 CLO debt 117,760 117,760 117,760 Discounted Cash Flow(9) 4.97 % 5.91 Borrowings from the FHLB 1,076,449 1,076,449 1,084,876 Discounted Cash Flow 2.50 % 2.32 Senior unsecured notes 1,166,201 1,157,117 1,201,973 Broker quotations, pricing services 5.39 % 3.53 Nonhedge derivatives(1)(8) 270,471 N/A 82 Counterparty quotations N/A 0.25 (1) Measured at fair value on a recurring basis with the net unrealized gains or losses recorded as a component of other comprehensive income (loss) in equity. (2) Represents notional outstanding balance of underlying collateral. (3) Measured at fair value on a recurring basis with the net unrealized gains or losses recorded in current period earnings. (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 discounted cash flow model. (5) Fair value is estimated to equal par value. (6) 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. (7) Fair value of the FHLB stock approximates outstanding face amount as the Company’s captive insurance subsidiary is restricted from trading the stock and can only put the stock back to the FHLB, at the FHLB’s discretion, at par. (8) The outstanding face amount of the nonhedge derivatives represents the notional amount of the underlying contracts. (9) Fair value for repurchase agreement liabilities and CLO debt 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. If the collateral is determined to be impaired, the related financing would be revalued accordingly. There are no impairments on any positions. (10) For repurchase agreements - long term and 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. December 31, 2018 Weighted Average Outstanding Face Amount Amortized Cost Basis Fair Value Fair Value Method Yield % Remaining Maturity/Duration (years) Assets: CMBS(1) $ 1,258,819 $ 1,257,801 $ 1,252,640 Internal model, third-party inputs 3.14 % 2.33 CMBS interest-only(1) 2,373,936 (2) 55,534 55,691 Internal model, third-party inputs 2.80 % 2.69 GNMA interest-only(3) 135,932 (2) 2,862 2,648 Internal model, third-party inputs 6.30 % 4.11 Agency securities(1) 668 682 662 Internal model, third-party inputs 1.83 % 2.36 GNMA permanent securities(1) 32,633 32,889 33,064 Internal model, third-party inputs 3.76 % 5.03 Corporate bonds(1) 55,305 54,257 53,871 Internal model, third-party inputs 5.04 % 2.51 Equity securities(3) N/A 13,154 11,550 Observable market prices N/A N/A Mortgage loan receivables held for investment, net, at amortized cost: Mortgage loan receivables held for investment, net, at amortized cost 3,340,381 3,318,390 3,324,588 Discounted Cash Flow(4) 7.84 % 1.32 Provision for loan losses N/A (17,900 ) (17,900 ) (5) N/A N/A Mortgage loan receivables held for sale 181,905 182,439 187,870 Internal model, third-party inputs(6) 5.46 % 9.75 FHLB stock(7) 57,915 57,915 57,915 (7) 4.50 % N/A Nonhedge derivatives(1)(8) — N/A — Counterparty quotations N/A 0.00 Liabilities: Repurchase agreements - short-term 436,957 436,957 436,957 Discounted Cash Flow(9) 3.42 % 0.23 Repurchase agreements - long-term 226,728 226,728 226,728 Discounted Cash Flow(10) 3.47 % 1.73 Mortgage loan financing 738,825 743,902 735,662 Discounted Cash Flow(10) 5.09 % 2.61 CLO debt 601,543 601,543 601,543 Discounted Cash Flow(9) 4.41 % 9.40 Participation Financing - Mortgage Loan Receivable 2,453 2,453 2,453 Discounted Cash Flow(11) 17.00 % 0.43 Borrowings from the FHLB 1,286,000 1,286,000 1,286,664 Discounted Cash Flow 2.55 % 2.46 Senior unsecured notes 1,166,201 1,154,991 1,111,288 Broker quotations, pricing services 5.39 % 4.28 Nonhedge derivatives(1)(8) 578,971 N/A 975 Counterparty quotations N/A 0.25 (1) Measured at fair value on a recurring basis with the net unrealized gains or losses recorded as a component of other comprehensive income (loss) in equity. (2) Represents notional outstanding balance of underlying collateral. (3) Measured at fair value on a recurring basis with the net unrealized gains or losses recorded in current period earnings. (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 discounted cash flow. (5) Fair value is estimated to equal par value. (6) 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. (7) Fair value of the FHLB stock approximates outstanding face amount as the Company’s captive insurance subsidiary is restricted from trading the stock and can only put the stock back to the FHLB, at the FHLB’s discretion, at par. (8) The outstanding face amount of the nonhedge derivatives represents the notional amount of the underlying contracts. (9) Fair value for repurchase agreement liabilities and CLO debt 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. If the collateral is determined to be impaired, the related financing would be revalued accordingly. There are no impairments on any positions. (10) For repurchase agreements - long term and 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. (11) Fair value for Participation Financing - Mortgage Loan Receivable approximates amortized cost as this is a loan participation to a third party. |
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 September 30, 2019 and December 31, 2018 ($ in thousands): September 30, 2019 Financial Instruments Reported at Fair Value on Consolidated Statements of Financial Condition Outstanding Face Amount Fair Value Level 1 Level 2 Level 3 Total Assets: CMBS(1) $ 1,767,314 $ — $ — $ 1,777,085 $ 1,777,085 CMBS interest-only(1) 2,128,234 (2) — — 40,601 40,601 GNMA interest-only(3) 113,096 (2) — — 2,026 2,026 Agency securities(1) 641 — — 654 654 GNMA permanent securities(1) 31,760 — — 32,795 32,795 Corporate bonds(1) 32,088 — — 32,372 32,372 Equity securities N/A 13,457 — — 13,457 Nonhedge derivatives(4) 6,000 — 22 — 22 $ 13,457 $ 22 $ 1,885,533 $ 1,899,012 Liabilities: Nonhedge derivatives(4) 270,471 $ — $ 82 $ — $ 82 Financial Instruments Not Reported at Fair Value on Consolidated Statements of Financial Condition Outstanding Face Amount Fair Value Level 1 Level 2 Level 3 Total Assets: Mortgage loan receivable held for investment, net, at amortized cost: Mortgage loans held by consolidated subsidiaries $ 3,249,711 $ — $ — $ 3,249,383 $ 3,249,383 Provision for loan losses N/A — — (18,500 ) (18,500 ) Mortgage loan receivable held for sale 173,957 — — 182,716 182,716 CMBS(5) 12,144 — — 11,627 11,627 CMBS interest-only(5) 11,123 (2) — — 839 839 FHLB stock 61,619 — — 61,619 61,619 $ — $ — $ 3,487,684 $ 3,487,684 Liabilities: Repurchase agreements - short-term 1,486,049 $ — $ — $ 1,486,049 $ 1,486,049 Repurchase agreements - long-term 299,999 — — 299,999 299,999 Mortgage loan financing 718,351 — — 748,489 748,489 CLO debt 117,760 — — 117,760 117,760 Borrowings from the FHLB 1,076,449 — — 1,084,876 1,084,876 Senior unsecured notes 1,166,201 — — 1,201,973 1,201,973 $ — $ — $ 4,939,146 $ 4,939,146 (1) Measured at fair value on a recurring basis with the net unrealized gains or losses recorded as a component of other comprehensive income (loss) in equity. (2) Represents notional outstanding balance of underlying collateral. (3) Measured at fair value on a recurring basis with the net unrealized gains or losses recorded in current period earnings. (4) Measured at fair value on a recurring basis with the net unrealized gains or losses recorded in current period earnings. The outstanding face amount of the nonhedge derivatives represents the notional amount of the underlying contracts. (5) Restricted securities which are designated as risk retention securities under the Dodd-Frank Act and are therefore subject to transfer restrictions over the term of the securitization trust, which are classified as held-to-maturity and reported at amortized cost. December 31, 2018 Financial Instruments Reported at Fair Value on Consolidated Statements of Financial Condition Outstanding Face Amount Fair Value Level 1 Level 2 Level 3 Total Assets: CMBS(1) $ 1,246,609 $ — $ — $ 1,241,334 $ 1,241,334 CMBS interest-only(1) 2,362,747 (2) — — 54,789 54,789 GNMA interest-only(3) 135,932 (2) — — 2,648 2,648 Agency securities(1) 668 — — 662 662 GNMA permanent securities(1) 32,633 — — 33,064 33,064 Corporate bonds(1) 55,305 — — 53,871 53,871 Equity securities N/A 11,550 — — 11,550 $ 11,550 $ — $ 1,386,368 $ 1,397,918 Liabilities: Nonhedge derivatives(4) $ 605,871 $ — $ 975 $ — $ 975 Financial Instruments Not Reported at Fair Value on Consolidated Statements of Financial Condition Outstanding Face Amount Fair Value Level 1 Level 2 Level 3 Total Assets: Mortgage loan receivable held for investment, net, at amortized cost: Mortgage loans held by consolidated subsidiaries $ 3,340,381 $ — $ — $ 3,324,588 $ 3,324,588 Provision for loan losses N/A — — (17,900 ) (17,900 ) Mortgage loan receivables held for sale 181,905 — — 187,870 187,870 CMBS(5) 12,210 — — 11,306 11,306 CMBS interest-only(5) 11,189 (2) — — 902 902 FHLB stock 57,915 — — 57,915 57,915 $ — $ — $ 3,564,681 $ 3,564,681 Liabilities: Repurchase agreements - short-term 436,957 $ — $ — $ 436,957 $ 436,957 Repurchase agreements - long-term 226,728 — — 226,728 226,728 Mortgage loan financing 738,825 — — 735,662 735,662 CLO debt 601,543 — — 601,543 601,543 Participation Financing - Mortgage Loan Receivable 2,453 — — 2,453 2,453 Borrowings from the FHLB 1,286,000 — — 1,286,664 1,286,664 Senior unsecured notes 1,166,201 — — 1,111,288 1,111,288 $ — $ — $ 4,401,295 $ 4,401,295 (1) Measured at fair value on a recurring basis with the net unrealized gains or losses recorded as a component of other comprehensive income (loss) in equity. (2) Represents notional outstanding balance of underlying collateral. (3) Measured at fair value on a recurring basis with the net unrealized gains or losses recorded in current period earnings. (4) Measured at fair value on a recurring basis with the net unrealized gains or losses recorded in current period earnings. The outstanding face amount of the nonhedge derivatives represents the notional amount of the underlying contracts. (5) Restricted securities which are designated as risk retention securities under the Dodd-Frank Act and are therefore subject to transfer restrictions over the term of the securitization trust, which are classified as held-to-maturity and reported at amortized cost. |
Schedule of changes in Level 3 of financial instruments | The following table summarizes changes in Level 3 financial instruments reported at fair value on the consolidated statements of financial condition for the nine months ended September 30, 2019 and 2018 ($ in thousands): Nine Months Ended September 30, Level 3 2019 2018 Balance at January 1, $ 1,385,957 $ 1,106,517 Transfer from level 2 — — Purchases 1,193,671 303,007 Sales (533,811 ) (306,109 ) Paydowns/maturities (178,402 ) (93,185 ) Amortization of premium/discount (9,333 ) (17,842 ) Unrealized gain/(loss) 16,813 (9,203 ) Realized gain/(loss) on sale(1) 10,639 (4,896 ) Balance at September 30, $ 1,885,534 $ 978,289 (1) Includes realized losses on securities recorded as other than temporary impairments. |
Schedule of quantitative information | The following is quantitative information about significant unobservable inputs in our Level 3 measurements for those assets and liabilities measured at fair value on a recurring basis ($ in thousands): September 30, 2019 Financial Instrument Carrying Value Valuation Technique Unobservable Input Minimum Weighted Average Maximum CMBS(1) $ 1,788,712 Discounted cash flow Yield (4) 1.68 % 3.1 % 20.55 % Duration (years)(5) 0.00 1.54 7.10 CMBS interest-only(1) 41,440 (2) Discounted cash flow Yield (4) 1.79 % 3.73 % 6.35 % Duration (years)(5) 0.08 2.61 3.85 Prepayment speed (CPY)(5) 100.00 100.00 100.00 GNMA interest-only(3) 2,026 (2) Discounted cash flow Yield (4) (7.19 )% 14.44 % 44.47 % Duration (years)(5) 0.00 2.78 8.61 Prepayment speed (CPJ)(5) 5.00 11.57 15.00 Agency securities(1) 654 Discounted cash flow Yield (4) — % 1.43 % 1.85 % Duration (years)(5) 0.00 2.46 3.17 GNMA permanent securities(1) 32,795 Discounted cash flow Yield (4) 3.43 % 18.72 % 84.30 % Duration (years)(5) 1.15 7.76 13.99 Corporate bonds(1) 32,372 Discounted cash flow Yield (4) 2.79 % 2.79 % 2.79 % Duration (years)(5) 1.05 1.05 1.05 Total $ 1,897,999 (1) CMBS, CMBS interest-only securities, Agency securities, GNMA construction securities, GNMA permanent securities and corporate bonds 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. (2) The amounts presented represent the principal amount of the mortgage loans outstanding in the pool in which the interest-only securities participate. (3) Agency interest-only securities are recorded at fair value with changes in fair value recorded in current period earnings. Sensitivity of the Fair Value to Changes in the Unobservable Inputs (4) Significant increase (decrease) in the unobservable input in isolation would result in significantly lower (higher) fair value measurement. (5) Significant increase (decrease) in the unobservable input in isolation would result in either a significantly lower or higher (lower or higher) fair value measurement depending on the structural features of the security in question. December 31, 2018 Financial Instrument Carrying Value Valuation Technique Unobservable Input Minimum Weighted Average Maximum CMBS(1) $ 1,252,640 Discounted cash flow Yield (3) — % 3.54 % 21.67 % Duration (years)(4) 0.00 2.50 7.78 CMBS interest-only(1) 55,691 (2) Discounted cash flow Yield (3) 0.87 % 4.71 % 8.11 % Duration (years)(4) 0.14 2.96 6.86 Prepayment speed (CPY)(4) 100.00 100.00 100.00 GNMA interest-only(3) 2,648 (2) Discounted cash flow Yield (4) 1.21 % 5.54 % 10.21 % Duration (years)(5) 0.04 3.13 4.77 Prepayment speed (CPJ)(5) 5.00 6.58 15.00 Agency securities(1) 662 Discounted cash flow Yield (4) — % 2.1 % 2.84 % Duration (years)(5) 0.00 2.83 3.82 GNMA permanent securities(1) 33,064 Discounted cash flow Yield (4) — % 3.51 % 4 % Duration (years)(5) 0.00 5.62 5.88 Corporate bonds(1) 53,871 Discounted cash flow Yield (4) 5.3 % 5.35 % 5.46 % Duration (years)(5) 1.94 2.19 2.70 Total $ 1,398,576 (1) CMBS, CMBS interest-only securities, Agency securities, GNMA construction securities, GNMA permanent securities and corporate bonds 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. (2) The amounts presented represent the principal amount of the mortgage loans outstanding in the pool in which the interest-only securities participate. (3) Agency interest-only securities are recorded at fair value with changes in fair value recorded in current period earnings. Sensitivity of the Fair Value to Changes in the Unobservable Inputs (4) Significant increase (decrease) in the unobservable input in isolation would result in significantly lower (higher) fair value measurement. (5) Significant increase (decrease) in the unobservable input in isolation would result in either a significantly lower or higher (lower or higher) fair value measurement depending on the structural features of the security in question. |
Fair value write-downs to assets carried at fair value on a nonrecurring basis | The following table summarizes the fair value write-downs to assets carried at fair value on a nonrecurring basis ($ in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Impairment of real estate Real estate, net(1)(2) $ — $ — $ 1,350 $ — (1) The write down to fair value was recorded based on contracted sales price and classified as Level 2 of the fair valuation hierarchy. On May 1, 2019 , the Company completed the sale of the property recognizing $3.9 million of operating lease income, $3.5 million realized loss on sale of real estate, net and $0.4 million of depreciation and amortization expense, resulting in a $20 thousand loss on sale of real estate, net. (2) Impairment is discussed in further detail in Note 5, Real Estate and Related Lease Intangibles, Net . |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Company's performance evaluation by segment | The Company evaluates performance based on the following financial measures for each segment ($ in thousands): Loans Securities Real Estate(1) Corporate/Other(2) Company Total Three months ended September 30, 2019 Interest income $ 66,422 $ 15,515 $ 7 $ 307 $ 82,251 Interest expense (12,063 ) (5,632 ) (9,646 ) (24,056 ) (51,397 ) Net interest income (expense) 54,359 9,883 (9,639 ) (23,749 ) 30,854 Provision for loan losses — — — — — Net interest income (expense) after provision for loan losses 54,359 9,883 (9,639 ) (23,749 ) 30,854 Operating lease income — — 24,405 — 24,405 Sale of loans, net 11,247 — — — 11,247 Realized gain (loss) on securities — 3,396 — — 3,396 Unrealized gain (loss) on equity securities — 254 — — 254 Unrealized gain (loss) on Agency interest-only securities — 16 — — 16 Realized gain on sale of real estate, net — — 2,082 — 2,082 Fee and other income 3,839 428 — 899 5,166 Net result from derivative transactions (6,557 ) (2,908 ) — — (9,465 ) Earnings (loss) from investment in unconsolidated joint ventures — — 1,094 — 1,094 Total other income (loss) 8,529 1,186 27,581 899 38,195 Salaries and employee benefits — — — (14,319 ) (14,319 ) Operating expenses — — — (5,314 ) (3) (5,314 ) Real estate operating expenses — — (6,270 ) — (6,270 ) Fee expense (1,264 ) (92 ) (700 ) — (2,056 ) Depreciation and amortization — — (9,005 ) (25 ) (9,030 ) Total costs and expenses (1,264 ) (92 ) (15,975 ) (19,658 ) (36,989 ) Income tax (expense) benefit — — — (1,112 ) (1,112 ) Segment profit (loss) $ 61,624 $ 10,977 $ 1,967 $ (43,620 ) $ 30,948 Total assets as of September 30, 2019 $ 3,387,157 $ 1,911,456 $ 1,032,752 $ 288,509 $ 6,619,874 Loans Securities Real Estate(1) Corporate/Other(2) Company Total Three months ended September 30, 2018 Interest income $ 81,779 $ 8,541 $ 6 $ 60 $ 90,386 Interest expense (17,232 ) (1,482 ) (9,213 ) (23,549 ) (51,476 ) Net interest income (expense) 64,547 7,059 (9,207 ) (23,489 ) 38,910 Provision for loan losses (10,300 ) — — — (10,300 ) Net interest income (expense) after provision for loan losses 54,247 7,059 (9,207 ) (23,489 ) 28,610 Operating lease income — — 24,997 — 24,997 Sale of loans, net 1,861 — — — 1,861 Realized gain (loss) on securities — (2,554 ) — — (2,554 ) Unrealized gain (loss) on Agency interest-only securities — 142 — — 142 Realized gain on sale of real estate, net — — 63,704 — 63,704 Fee and other income 3,895 — — 956 4,851 Net result from derivative transactions 3,741 3,374 — — 7,115 Earnings (loss) from investment in unconsolidated joint ventures — — 401 — 401 Gain (loss) on extinguishment/defeasance of debt — — (4,323 ) — (4,323 ) Total other income (loss) 9,497 962 84,779 956 96,194 Salaries and employee benefits — — — (15,792 ) (15,792 ) Operating expenses 61 — — (5,525 ) (3) (5,464 ) Real estate operating expenses — — (7,152 ) — (7,152 ) Fee expense (928 ) (91 ) (292 ) — (1,311 ) Depreciation and amortization — — (10,398 ) (19 ) (10,417 ) Total costs and expenses (867 ) (91 ) (17,842 ) (21,336 ) (40,136 ) Income tax (expense) benefit — — — (1,204 ) (1,204 ) Segment profit (loss) $ 62,877 $ 7,930 $ 57,730 $ (45,073 ) $ 83,464 Total assets as of December 31, 2018 $ 3,482,929 $ 1,410,126 $ 1,038,376 $ 341,441 $ 6,272,872 Loans Securities Real Estate(1) Corporate/Other(2) Company Total Nine months ended September 30, 2019 Interest income $ 209,369 $ 43,844 $ 21 $ 806 $ 254,040 Interest expense (41,043 ) (12,250 ) (27,620 ) (74,102 ) (155,015 ) Net interest income (expense) 168,326 31,594 (27,599 ) (73,296 ) 99,025 Provision for loan losses (600 ) — — — (600 ) Net interest income (expense) after provision for loan losses 167,726 31,594 (27,599 ) (73,296 ) 98,425 Operating lease income — — 81,106 — 81,106 Sale of loans, net 38,589 — — — 38,589 Realized gain (loss) on securities — 10,726 — — 10,726 Unrealized gain (loss) on equity securities — 1,341 — — 1,341 Unrealized gain (loss) on Agency interest-only securities — 38 — — 38 Realized gain on sale of real estate, net — — 963 — 963 Impairment of real estate — — (1,350 ) — (1,350 ) Fee and other income 13,095 1,165 7 2,780 17,047 Net result from derivative transactions (20,273 ) (15,683 ) — — (35,956 ) Earnings (loss) from investment in unconsolidated joint ventures — — 3,617 — 3,617 Gain (loss) on extinguishment of debt — — (1,070 ) — (1,070 ) Total other income (loss) 31,411 (2,413 ) 83,273 2,780 115,051 Salaries and employee benefits — — — (52,800 ) (52,800 ) Operating expenses — — — (16,727 ) (3) (16,727 ) Real estate operating expenses — — (17,776 ) (17,776 ) Fee expense (3,516 ) (280 ) (1,155 ) — (4,951 ) Depreciation and amortization — — (29,118 ) (74 ) (29,192 ) Total costs and expenses (3,516 ) (280 ) (48,049 ) (69,601 ) (121,446 ) Income tax (expense) benefit — — — (478 ) (478 ) Segment profit (loss) $ 195,621 $ 28,901 $ 7,625 $ (140,595 ) $ 91,552 Total assets as of September 30, 2019 $ 3,387,157 $ 1,911,456 $ 1,032,752 $ 288,509 $ 6,619,874 Loans Securities Real Estate(1) Corporate/Other(2) Company Total Nine months ended September 30, 2018 Interest income $ 228,273 $ 25,217 $ 16 $ 316 $ 253,822 Interest expense (46,286 ) (3,423 ) (25,799 ) (69,098 ) (144,606 ) Net interest income (expense) 181,987 21,794 (25,783 ) (68,782 ) 109,216 Provision for loan losses (13,600 ) — — — (13,600 ) Net interest income (expense) after provision for loan losses 168,387 21,794 (25,783 ) (68,782 ) 95,616 Operating lease income — — 79,306 — 79,306 Sale of loans, net 12,893 — — — 12,893 Realized gain (loss) on securities — (4,896 ) — — (4,896 ) Unrealized gain (loss) on Agency interest-only securities — 456 — — 456 Realized gain on sale of real estate, net — — 96,341 — 96,341 Fee and other income 10,823 72 3,416 3,268 17,579 Net result from derivative transactions 14,516 14,640 — — 29,156 Earnings (loss) from investment in unconsolidated joint ventures — — 466 — 466 Gain (loss) on extinguishment of debt (69 ) — (4,323 ) — (4,392 ) Total other income (loss) 38,163 10,272 175,206 3,268 226,909 Salaries and employee benefits — — — (46,754 ) (46,754 ) Operating expenses 61 — — (16,669 ) (3) (16,608 ) Real estate operating expenses — — (23,806 ) (23,806 ) Fee expense (2,160 ) (297 ) (496 ) — (2,953 ) Depreciation and amortization — — (31,840 ) (56 ) (31,896 ) Total costs and expenses (2,099 ) (297 ) (56,142 ) (63,479 ) (122,017 ) Income tax (expense) benefit — — — (5,679 ) (5,679 ) Segment profit (loss) $ 204,451 $ 31,769 $ 93,281 $ (134,672 ) $ 194,829 Total assets as of December 31, 2018 $ 3,482,929 $ 1,410,126 $ 1,038,376 $ 341,441 $ 6,272,872 (1) Includes the Company’s investment in unconsolidated joint ventures that held real estate of $51.4 million and $40.4 million as of September 30, 2019 and December 31, 2018 , respectively. (2) Corporate/Other represents all corporate level and unallocated items including any intercompany eliminations necessary to reconcile to consolidated Company totals. This segment 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 FHLB stock of $61.6 million and $57.9 million as of September 30, 2019 and December 31, 2018 , respectively, the Company’s deferred tax asset (liability) of $(4.7) million and $2.3 million as of September 30, 2019 and December 31, 2018 , respectively and the Company’s senior unsecured notes of $1.2 billion as of September 30, 2019 and December 31, 2018 . (3) Includes $3.0 million and $9.1 million of professional fees for the three and nine months ended September 30, 2019 , respectively. Includes $2.9 million and $8.7 million of professional fees for the three and nine months ended September 30, 2018 |
ORGANIZATION AND OPERATIONS (De
ORGANIZATION AND OPERATIONS (Details) | Sep. 30, 2019 |
LCFH | |
ORGANIZATION AND OPERATIONS | |
Ownership interest in LCFH | 89.80% |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2018 | Sep. 30, 2019 | Jan. 01, 2019 | |
Out-of-Period Adjustment Related to Prior Years | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Increase in tenant real estate tax recoveries on net lease property | $ 1.1 | ||
Accounting Standards Update 2016-02 | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Operating lease liability | $ 2.7 | $ 3.5 | |
Operating lease, right-of-use asset | $ 2.7 | $ 3.3 |
MORTGAGE LOAN RECEIVABLES - Sch
MORTGAGE LOAN RECEIVABLES - Schedule of Mortgage Loans (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2017 | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||
Outstanding Face Amount | $ 3,423,668 | $ 3,522,286 | |||
Provision for loan losses | [1] | (18,500) | (17,900) | ||
Carrying Value | $ 3,387,157 | $ 3,482,929 | |||
Weighted Average Yield | 7.19% | 7.76% | |||
Remaining Maturity | 1 year 9 months 21 days | 1 year 9 months 7 days | |||
First mortgage loans | |||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||
Outstanding Face Amount | $ 3,116,050 | $ 3,192,160 | |||
Carrying Value gross, consumer and commercial real estate | $ 3,098,241 | $ 3,170,788 | |||
Weighted Average Yield | 7.14% | 7.70% | |||
Remaining Maturity | 1 year 3 months 7 days | 1 year 2 months 4 days | |||
Mezzanine loans | |||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||
Outstanding Face Amount | $ 133,661 | $ 148,221 | |||
Carrying Value gross, consumer and commercial real estate | $ 133,202 | $ 147,602 | |||
Weighted Average Yield | 10.87% | 10.89% | |||
Remaining Maturity | 3 years 9 months 3 days | 4 years 4 months 6 days | |||
Mortgage loans held by consolidated subsidiaries | |||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||
Outstanding Face Amount | $ 3,249,711 | $ 3,340,381 | |||
Carrying Value gross, consumer and commercial real estate | $ 3,231,443 | $ 3,318,390 | |||
Weighted Average Yield | 7.29% | 7.84% | |||
Remaining Maturity | 1 year 4 months 13 days | 1 year 3 months 25 days | |||
Total mortgage loan receivables held for investment, net, at amortized cost | |||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||
Outstanding Face Amount | $ 3,249,711 | $ 3,340,381 | |||
Provision for loan losses | (18,500) | (17,900) | $ (17,600) | $ (4,000) | |
Carrying Value | 3,212,943 | 3,300,490 | |||
First mortgage loans | |||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||
Outstanding Face Amount | 173,957 | 181,905 | |||
Carrying Value | $ 174,214 | $ 182,439 | |||
Weighted Average Yield | 4.59% | 5.46% | |||
Remaining Maturity | 9 years 8 months 4 days | 9 years 9 months | |||
[1] | Includes amounts relating to consolidated variable interest entities. See Note 10 . |
MORTGAGE LOAN RECEIVABLES - Add
MORTGAGE LOAN RECEIVABLES - Additional Information (Details) | Mar. 31, 2018USD ($) | Sep. 30, 2019USD ($)loan | Dec. 31, 2018USD ($)loan | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($)loan | Sep. 30, 2018USD ($) |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||||
Unamortized discounts included in mortgage loan receivables held for investment, at amortized cost | $ 100,000 | $ 500,000 | $ 100,000 | |||
Provision for loan losses | 0 | $ 10,300,000 | 600,000 | $ 13,600,000 | ||
Loans nonaccrual status, amount | $ 37,161,000 | $ 36,850,000 | $ 37,161,000 | |||
Minimum | ||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||||
Direct capitalization rate | 4.70% | 4.60% | ||||
Maximum | ||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||||
Number of mortgage loans impaired | loan | 3 | 3 | 3 | |||
Direct capitalization rate | 5.00% | 4.90% | ||||
Total mortgage loan receivables held for investment, net, at amortized cost | ||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||||
Loans receivable with variable rates of interest | $ 2,500,000,000 | $ 2,500,000,000 | $ 2,500,000,000 | |||
Loans receivable with variable rates of interest | 78.40% | 75.40% | 78.40% | |||
Loans receivable with variable rates of interest, subject to interest rate floors | 100.00% | 100.00% | 100.00% | |||
Total mortgage loan receivables held for investment, net, at amortized cost | Two Of Company Loans | ||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||||
Number or loans in default | loan | 2 | |||||
Loans in default, carrying value | $ 26,900,000 | $ 26,900,000 | ||||
Loan reserve amount | $ 2,700,000 | |||||
Total mortgage loan receivables held for investment, net, at amortized cost | One Of Company Loans | ||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||||
Provision for loan losses | 10,000,000 | $ 12,700,000 | ||||
Loans in default, carrying value | $ 45,000,000 | |||||
Total mortgage loan receivables held for investment, net, at amortized cost | One Of Company Loans | Series A | ||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||||
Loans in default, carrying value | 35,000,000 | |||||
Total mortgage loan receivables held for investment, net, at amortized cost | One Of Company Loans | Series B | ||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||||
Loans in default, carrying value | $ 10,000,000 | |||||
Total mortgage loan receivables held for investment, net, at amortized cost | One Of Company Loans | Minimum | ||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||||
Percentage of equity kicker not subject to investment | 19.00% | |||||
Total mortgage loan receivables held for investment, net, at amortized cost | One Of Company Loans | Maximum | ||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||||
Percentage of equity kicker not subject to investment | 25.00% | |||||
Total mortgage loan receivables held for investment, net, at amortized cost | Asset Specific Reserve, Company Loan | ||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||||
Loan reserve amount | $ 10,000,000 | |||||
First mortgage loans | ||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||||
Loans receivable with fixed rates of interest | $ 174,000,000 | $ 182,400,000 | $ 174,000,000 | |||
Percentage of loans receivable with fixed rates of interest | 100.00% | 100.00% | 100.00% | |||
Loan on non-accrual status | ||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||||
Loans nonaccrual status, amount | $ 0 | $ 0 | $ 0 |
MORTGAGE LOAN RECEIVABLES - Act
MORTGAGE LOAN RECEIVABLES - Activity in Loan Portfolio (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Movement in Mortgage Loans on Real Estate [Roll Forward] | ||||||
Provision for loan losses | [1] | $ (17,900) | $ (17,900) | |||
Sale of loans, net | $ 11,247 | $ 1,861 | 38,589 | $ 12,893 | ||
Provision for loan losses | [1] | (18,500) | (18,500) | |||
Loans held for sale transferred loan held for investment, book value | 15,400 | 57,600 | 57,600 | |||
Combined book value | $ 15,500 | 55,400 | $ 55,400 | |||
Remaining maturity | 9 years 9 months 18 days | 2 years 6 months | ||||
Loan loss provision | 0 | 10,300 | 600 | $ 13,600 | ||
Mortgage loans held by consolidated subsidiaries | ||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Movement in Mortgage Loans on Real Estate [Roll Forward] | ||||||
Mortgage loans receivable, beginning balance | $ 3,318,390 | 3,318,390 | 3,282,462 | |||
Origination of mortgage loan receivables | 985,825 | 1,240,894 | ||||
Purchases of mortgage loan receivables | 0 | |||||
Repayment of mortgage loan receivables | (1,105,506) | (787,167) | ||||
Non-cash disposition of loans via foreclosure | (17,611) | |||||
Transfer between held for investment and held for sale | 35,940 | 55,403 | ||||
Accretion/amortization of discount, premium and other fees | 14,405 | 13,795 | ||||
Mortgage loans receivable, ending balance | 3,231,443 | 3,805,387 | 3,231,443 | 3,805,387 | ||
Mortgage loans transferred but not considered sold | ||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Movement in Mortgage Loans on Real Estate [Roll Forward] | ||||||
Mortgage loans receivable, beginning balance | 0 | 0 | ||||
Purchases of mortgage loan receivables | 0 | |||||
Proceeds from sales of mortgage loan receivables | (15,504) | |||||
Transfer between held for investment and held for sale | 15,504 | |||||
Mortgage loans receivable, ending balance | 0 | 0 | ||||
Total mortgage loan receivables held for investment, net, at amortized cost | ||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Movement in Mortgage Loans on Real Estate [Roll Forward] | ||||||
Provision for loan losses | (17,900) | (17,900) | (4,000) | |||
Provision for loan losses | (600) | (13,600) | ||||
Provision for loan losses | (18,500) | (17,600) | (18,500) | (17,600) | ||
Total mortgage loan receivables held for investment, net, at amortized cost | One Of Company Loans | ||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Movement in Mortgage Loans on Real Estate [Roll Forward] | ||||||
Loan loss provision | 10,000 | 12,700 | ||||
Reserve based on targeted percentage level in portfolio | 300 | |||||
Total mortgage loan receivables held for investment, net, at amortized cost | Two Of Company Loans | ||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Movement in Mortgage Loans on Real Estate [Roll Forward] | ||||||
Reserve based on targeted percentage level in portfolio | 900 | |||||
First mortgage loans | ||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Movement in Mortgage Loans on Real Estate [Roll Forward] | ||||||
Mortgage loans receivable, beginning balance | $ 182,439 | 182,439 | 230,180 | |||
Origination of mortgage loan receivables | 554,115 | 1,115,218 | ||||
Purchases of mortgage loan receivables | 9,934 | |||||
Repayment of mortgage loan receivables | (620) | (1,324) | ||||
Proceeds from sales of mortgage loan receivables | (558,799) | (926,402) | ||||
Non-cash disposition of loans via foreclosure | 0 | |||||
Sale of loans, net | 38,589 | 12,893 | ||||
Transfer between held for investment and held for sale | (51,444) | (55,403) | ||||
Mortgage loans receivable, ending balance | $ 174,214 | 375,162 | $ 174,214 | 375,162 | ||
Realized losses | $ 500 | $ 500 | ||||
[1] | Includes amounts relating to consolidated variable interest entities. See Note 10 . |
MORTGAGE LOAN RECEIVABLES - Pro
MORTGAGE LOAN RECEIVABLES - Provision for Loan Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Provision for loan losses at beginning of period | $ 18,500 | $ 7,300 | $ 17,900 | $ 4,000 | |
Provision for loan losses | 0 | 10,300 | 600 | 13,600 | |
Provision for loan losses at end of period | 18,500 | $ 17,600 | 18,500 | $ 17,600 | |
Principal balance of loans on non-accrual status | $ 37,161 | $ 37,161 | $ 36,850 |
REAL ESTATE SECURITIES - Summar
REAL ESTATE SECURITIES - Summary of Securities (Details) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2019USD ($)security | Dec. 31, 2018USD ($)security | ||
Debt Securities, Available-for-sale [Line Items] | |||
Outstanding Face Amount | $ 4,096,400 | $ 3,857,293 | |
Amortized Cost Basis/Purchase Price | 1,886,636 | 1,404,025 | |
Gross Unrealized Gains | 12,203 | 3,418 | |
Gross Unrealized Losses | (840) | (8,867) | |
Carrying Value | $ 1,897,999 | $ 1,398,576 | |
Number of Securities | security | 178 | 179 | |
Weighted Average Coupon | 1.75% | 1.54% | |
Weighted Average Yield | 3.17% | 3.19% | |
Remaining Duration | 2 years 4 months 20 days | 2 years 4 months 24 days | |
Number of equity securities | security | 3 | 3 | |
Amortized Cost Basis/Purchase Price | $ 1,900,356 | $ 1,417,179 | |
Gross Unrealized Gains | 12,328 | 3,418 | |
Gross Unrealized Losses | (1,228) | (10,471) | |
Carrying Value | [1] | $ 1,911,456 | $ 1,410,126 |
Total number of Securities | security | 181 | 182 | |
CMBS | |||
Debt Securities, Available-for-sale [Line Items] | |||
Outstanding Face Amount | $ 1,779,458 | $ 1,258,819 | |
Amortized Cost Basis/Purchase Price | 1,780,233 | 1,257,801 | |
Gross Unrealized Gains | 9,012 | 2,477 | |
Gross Unrealized Losses | (533) | (7,638) | |
Carrying Value | $ 1,788,712 | $ 1,252,640 | |
Number of Securities | security | 139 | 138 | |
Weighted Average Coupon | 3.27% | 3.32% | |
Weighted Average Yield | 3.14% | 3.14% | |
Remaining Duration | 2 years 4 months 17 days | 2 years 3 months 29 days | |
Risk retention requirement, amount | $ 11,600 | $ 11,300 | |
CMBS interest-only | |||
Debt Securities, Available-for-sale [Line Items] | |||
Outstanding Face Amount | 2,139,357 | 2,373,936 | |
Amortized Cost Basis/Purchase Price | 39,961 | 55,534 | |
Gross Unrealized Gains | 1,491 | 428 | |
Gross Unrealized Losses | (12) | (271) | |
Carrying Value | $ 41,440 | $ 55,691 | |
Number of Securities | security | 18 | 19 | |
Weighted Average Coupon | 0.49% | 0.57% | |
Weighted Average Yield | 3.65% | 2.80% | |
Remaining Duration | 2 years 7 months 9 days | 2 years 8 months 8 days | |
Risk retention requirement, amount | $ 800 | $ 900 | |
GNMA interest-only | |||
Debt Securities, Available-for-sale [Line Items] | |||
Outstanding Face Amount | 113,096 | 135,932 | |
Amortized Cost Basis/Purchase Price | 2,202 | 2,862 | |
Gross Unrealized Gains | 119 | 93 | |
Gross Unrealized Losses | (295) | (307) | |
Carrying Value | $ 2,026 | $ 2,648 | |
Number of Securities | security | 12 | 12 | |
Weighted Average Coupon | 0.51% | 0.51% | |
Weighted Average Yield | 9.65% | 6.30% | |
Remaining Duration | 2 years 8 months 23 days | 4 years 1 month 9 days | |
Agency securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Outstanding Face Amount | $ 641 | $ 668 | |
Amortized Cost Basis/Purchase Price | 652 | 682 | |
Gross Unrealized Gains | 2 | 0 | |
Gross Unrealized Losses | 0 | (20) | |
Carrying Value | $ 654 | $ 662 | |
Number of Securities | security | 2 | 2 | |
Weighted Average Coupon | 2.67% | 2.73% | |
Weighted Average Yield | 1.74% | 1.83% | |
Remaining Duration | 1 year 11 months 19 days | 2 years 4 months 9 days | |
GNMA permanent securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Outstanding Face Amount | $ 31,760 | $ 32,633 | |
Amortized Cost Basis/Purchase Price | 31,984 | 32,889 | |
Gross Unrealized Gains | 811 | 420 | |
Gross Unrealized Losses | 0 | (245) | |
Carrying Value | $ 32,795 | $ 33,064 | |
Number of Securities | security | 6 | 6 | |
Weighted Average Coupon | 3.92% | 3.94% | |
Weighted Average Yield | 3.27% | 3.76% | |
Remaining Duration | 4 years 6 months 18 days | 5 years 10 days | |
Corporate bonds | |||
Debt Securities, Available-for-sale [Line Items] | |||
Outstanding Face Amount | $ 32,088 | $ 55,305 | |
Amortized Cost Basis/Purchase Price | 31,604 | 54,257 | |
Gross Unrealized Gains | 768 | 0 | |
Gross Unrealized Losses | 0 | (386) | |
Carrying Value | $ 32,372 | $ 53,871 | |
Number of Securities | security | 1 | 2 | |
Weighted Average Coupon | 3.63% | 4.08% | |
Weighted Average Yield | 4.81% | 5.04% | |
Remaining Duration | 1 year 3 months 21 days | 2 years 6 months 3 days | |
Equity securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost Basis/Purchase Price | $ 13,720 | $ 13,154 | |
Gross Unrealized Gains | 125 | 0 | |
Gross Unrealized Losses | (388) | (1,604) | |
Carrying Value | $ 13,457 | $ 11,550 | |
[1] | Includes amounts relating to consolidated variable interest entities. See Note 10 . |
REAL ESTATE SECURITIES - Securi
REAL ESTATE SECURITIES - Securities by Remaining Maturity (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Within 1 year | $ 396,616 | $ 343,834 |
1-5 years | 1,319,861 | 884,997 |
5-10 years | 181,522 | 169,743 |
After 10 years | 0 | 2 |
Total | 1,897,999 | 1,398,576 |
CMBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Within 1 year | 395,377 | 342,121 |
1-5 years | 1,212,074 | 772,594 |
5-10 years | 181,261 | 137,925 |
After 10 years | 0 | 0 |
Total | 1,788,712 | 1,252,640 |
CMBS interest-only | ||
Debt Securities, Available-for-sale [Line Items] | ||
Within 1 year | 645 | 1,145 |
1-5 years | 40,795 | 54,546 |
5-10 years | 0 | 0 |
After 10 years | 0 | 0 |
Total | 41,440 | 55,691 |
GNMA interest-only | ||
Debt Securities, Available-for-sale [Line Items] | ||
Within 1 year | 250 | 17 |
1-5 years | 1,515 | 2,276 |
5-10 years | 261 | 353 |
After 10 years | 0 | 2 |
Total | 2,026 | 2,648 |
Agency securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Within 1 year | 0 | 0 |
1-5 years | 654 | 662 |
5-10 years | 0 | 0 |
After 10 years | 0 | 0 |
Total | 654 | 662 |
GNMA permanent securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Within 1 year | 344 | 551 |
1-5 years | 32,451 | 1,048 |
5-10 years | 0 | 31,465 |
After 10 years | 0 | 0 |
Total | 32,795 | 33,064 |
Corporate bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Within 1 year | 0 | 0 |
1-5 years | 32,372 | 53,871 |
5-10 years | 0 | 0 |
After 10 years | 0 | 0 |
Total | $ 32,372 | $ 53,871 |
REAL ESTATE SECURITIES - Addit
REAL ESTATE SECURITIES - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Unrealized gain (loss) on equity securities | $ 0 | $ 0 | $ 100,000 | $ 100,000 |
Other than temporary impairment losses included in consolidated statements of income | $ 100,000 | $ 600,000 | $ 100,000 | $ 2,200,000 |
REAL ESTATE AND RELATED LEASE_3
REAL ESTATE AND RELATED LEASE INTANGIBLES, NET - Schedule of Real Estate Portfolio (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | |
Real estate and related lease intangibles, net | |||
Less: Accumulated depreciation and amortization | $ (196,853) | $ (173,938) | |
Real estate and related lease intangibles, net | [1] | 981,333 | 998,022 |
Below market lease intangibles, net (other liabilities) | (39,087) | (40,367) | |
In-place leases and other intangibles | |||
Real estate and related lease intangibles, net | |||
Real estate | 159,721 | 162,002 | |
Land | |||
Real estate and related lease intangibles, net | |||
Real estate | 197,682 | 195,644 | |
Building | |||
Real estate and related lease intangibles, net | |||
Real estate | $ 820,783 | $ 814,314 | |
[1] | Includes amounts relating to consolidated variable interest entities. See Note 10 . |
REAL ESTATE AND RELATED LEASE_4
REAL ESTATE AND RELATED LEASE INTANGIBLES, NET - Additional Information (Details) - USD ($) $ in Thousands | May 01, 2019 | Feb. 06, 2019 | Jan. 10, 2019 | Sep. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Feb. 28, 2019 | Dec. 31, 2018 |
Business Acquisition [Line Items] | ||||||||||
Foreclosed properties held in real estate | $ 23,900 | $ 23,900 | $ 6,300 | |||||||
Proceeds from lease prepayments | $ 10,000 | |||||||||
Mortgage loan and financing related to property sales | $ 6,600 | |||||||||
Gain (loss) on extinguishment/defeasance of debt | $ (1,100) | 0 | $ (4,323) | (1,070) | $ (4,392) | |||||
Impairment of real estate | 0 | $ 1,400 | 0 | 1,350 | 0 | |||||
Operating lease income | $ 3,900 | 24,405 | 81,106 | |||||||
Loss on sale of real estate | 3,500 | |||||||||
Depreciation and amortization | 400 | 9,030 | 10,417 | 29,192 | $ 31,896 | |||||
Loss on sale of real estate | $ 20 | |||||||||
Unbilled rent receivables | 1,000 | 1,000 | 800 | |||||||
Unencumbered real estates | 90,800 | 90,800 | 58,600 | |||||||
Real estate operating income | 1,100 | 2,100 | ||||||||
Real estate acquired through foreclosure | 18,200 | 18,200 | ||||||||
Unamortized discounts included in mortgage loan receivables held for investment, at amortized cost | (100) | $ (100) | $ (500) | |||||||
Weighted average amortization period for intangible assets acquired | 38 years 3 months 18 days | 18 years 6 months | ||||||||
Revenues from acquisitions | 167 | 2,000 | $ 246 | $ 3,400 | ||||||
Net earnings (loss) | (1,000) | $ 700 | (2,500) | $ 1,500 | ||||||
Omaha, NE | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Real estate acquired through foreclosure | 18,200 | 18,200 | $ 18,200 | |||||||
Real Estate Acquired in Satisfaction of Debt | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Loans in default, no losses expected | 17,800 | 17,800 | ||||||||
Accrued interest | 200 | |||||||||
Unamortized discounts included in mortgage loan receivables held for investment, at amortized cost | $ 100 | $ 100 | ||||||||
Assets Leased to Others | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Property book value | 5,600 | |||||||||
Accumulated depreciation and amortization | $ 2,700 |
REAL ESTATE AND RELATED LEASE_5
REAL ESTATE AND RELATED LEASE INTANGIBLES, NET - Schedule of Depreciation and Amortization Expense on Real Estate (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Real Estate [Abstract] | ||||
Depreciation expense | $ 7,394 | $ 8,063 | $ 22,776 | $ 24,058 |
Amortization expense | 1,612 | 2,336 | 6,342 | 7,782 |
Total real estate depreciation and amortization expense | 9,006 | 10,399 | 29,118 | 31,840 |
Depreciation on corporate fixed assets | $ 24 | $ 18 | $ 74 | $ 56 |
REAL ESTATE AND RELATED LEASE_6
REAL ESTATE AND RELATED LEASE INTANGIBLES, NET - Unamortized Favorable Lease Intangibles (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Business Acquisition [Line Items] | |||||
Gross intangible assets | $ 159,721 | $ 159,721 | $ 162,002 | ||
Accumulated amortization | 61,056 | 61,056 | 57,712 | ||
Net intangible assets | 98,665 | 98,665 | 104,290 | ||
Increase in operating lease income for amortization of below market lease intangibles acquired | 564 | $ 500 | 1,594 | $ 1,821 | |
Unamortized favorable lease intangibles | 4,600 | 4,600 | $ 5,500 | ||
Above Market Leases | |||||
Business Acquisition [Line Items] | |||||
Reduction in operating lease income for amortization of above market lease intangibles acquired | $ (94) | $ (155) | $ (727) | $ (535) |
REAL ESTATE AND RELATED LEASE_7
REAL ESTATE AND RELATED LEASE INTANGIBLES, NET - Expected Future Amortization Expense (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Finite-Lived Intangible Assets [Line Items] | ||
Total | $ 98,665 | $ 104,290 |
Adjustment to Operating Lease Income | ||
Finite-Lived Intangible Assets [Line Items] | ||
2019 (last 3 months) | 263 | |
2020 | 1,054 | |
2021 | 1,054 | |
2022 | 1,054 | |
2023 | 1,054 | |
Thereafter | 29,981 | |
Total | 34,460 | |
Amortization Expense | ||
Finite-Lived Intangible Assets [Line Items] | ||
2019 (last 3 months) | 1,601 | |
2020 | 6,403 | |
2021 | 6,232 | |
2022 | 6,232 | |
2023 | 6,232 | |
Thereafter | 67,233 | |
Total | $ 93,933 |
REAL ESTATE AND RELATED LEASE_8
REAL ESTATE AND RELATED LEASE INTANGIBLES, NET - Future Minimum Rental Payments Receivable (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Real Estate [Abstract] | |
2019 (last 3 months) | $ 21,347 |
2020 | 80,401 |
2021 | 69,055 |
2022 | 65,936 |
2023 | 64,106 |
Thereafter | 520,897 |
Total | $ 821,742 |
REAL ESTATE AND RELATED LEASE_9
REAL ESTATE AND RELATED LEASE INTANGIBLES, NET - Schedule of Real Estate Properties Acquired (Details) - USD ($) $ in Thousands | 1 Months Ended | 8 Months Ended | 9 Months Ended | |||||||||
Sep. 30, 2019 | Aug. 31, 2019 | Jul. 31, 2019 | Jun. 30, 2019 | Apr. 30, 2019 | Feb. 28, 2019 | May 31, 2018 | Apr. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | |
Business Acquisition [Line Items] | ||||||||||||
Purchase Price | $ 13,904 | $ 32,104 | $ 115,548 | |||||||||
Real estate acquired through foreclosure | $ 18,200 | $ 18,200 | $ 18,200 | |||||||||
Lithia Springs, GA | Diversified | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Purchase Price | $ 24,466 | |||||||||||
Ownership Interest | 70.60% | |||||||||||
Lithia Springs, GA | Diversified | Corporate Joint Venture | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Purchase Price | $ 2,900 | |||||||||||
Kirbyville, MO | Net Lease | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Purchase Price | $ 1,156 | |||||||||||
Ownership Interest | 100.00% | |||||||||||
Gladwin, MI | Net Lease | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Purchase Price | 1,171 | |||||||||||
Ownership Interest | 100.00% | |||||||||||
Foley, MN | Net Lease | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Purchase Price | 1,176 | |||||||||||
Ownership Interest | 100.00% | |||||||||||
Moscow Mills, MO | Net Lease | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Purchase Price | 1,237 | |||||||||||
Ownership Interest | 100.00% | |||||||||||
Wonder Lake, IL | Net Lease | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Purchase Price | $ 1,255 | |||||||||||
Ownership Interest | 100.00% | |||||||||||
Isla Vista, CA | Diversified | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Purchase Price | $ 85,087 | |||||||||||
Ownership Interest | 75.00% | |||||||||||
Isla Vista, CA | Diversified | Corporate Joint Venture | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Purchase Price | $ 4,600 | |||||||||||
Houghton Lake, MI | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Purchase Price | $ 1,242 | |||||||||||
Ownership Interest | 100.00% | 100.00% | 100.00% | |||||||||
Trenton, MO | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Purchase Price | 1,164 | |||||||||||
Ownership Interest | 100.00% | 100.00% | 100.00% | |||||||||
Centralia, IL | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Purchase Price | $ 1,242 | |||||||||||
Ownership Interest | 100.00% | 100.00% | 100.00% | |||||||||
Fayette, MO | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Purchase Price | $ 1,423 | |||||||||||
Ownership Interest | 100.00% | 100.00% | 100.00% | |||||||||
Dexter, MO | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Purchase Price | $ 1,150 | |||||||||||
Ownership Interest | 100.00% | 100.00% | 100.00% | |||||||||
Caledonia, MI | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Purchase Price | $ 1,199 | |||||||||||
Ownership Interest | 100.00% | 100.00% | 100.00% | |||||||||
Poseyville, IN | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Purchase Price | $ 1,220 | |||||||||||
Ownership Interest | 100.00% | 100.00% | 100.00% | |||||||||
Chillicothe, IL | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Purchase Price | $ 1,445 | |||||||||||
Ownership Interest | 100.00% | 100.00% | 100.00% | |||||||||
Sullivan, IL | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Purchase Price | $ 1,496 | |||||||||||
Ownership Interest | 100.00% | 100.00% | 100.00% | |||||||||
Becker, MN | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Purchase Price | $ 1,185 | |||||||||||
Ownership Interest | 100.00% | 100.00% | 100.00% | |||||||||
Adrian, MO | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Purchase Price | $ 1,138 | |||||||||||
Ownership Interest | 100.00% | 100.00% | 100.00% | |||||||||
Omaha, NE | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Real estate acquired through foreclosure | $ 18,200 | $ 18,200 | $ 18,200 | $ 18,200 | ||||||||
Ownership Interest | 100.00% | 100.00% | 100.00% |
REAL ESTATE AND RELATED LEAS_10
REAL ESTATE AND RELATED LEASE INTANGIBLES, NET - Schedule of Identifiable Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | 8 Months Ended | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | |
Real Estate [Abstract] | |||
Land | $ 4,969 | $ 4,969 | $ 40,019 |
Building | 25,571 | 25,571 | 73,794 |
Intangibles | 2,309 | 2,309 | 2,065 |
Below Market Lease Intangibles | (745) | (745) | (330) |
Purchase Price | $ 13,904 | $ 32,104 | $ 115,548 |
REAL ESTATE AND RELATED LEAS_11
REAL ESTATE AND RELATED LEASE INTANGIBLES, NET - Real Estate Properties Sold (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2019USD ($)property | Sep. 30, 2018USD ($)property | Sep. 30, 2019USD ($)property | Sep. 30, 2018USD ($)property | Dec. 31, 2018USD ($) | ||
Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Net Sales Proceeds | $ 10,794 | $ 153,398 | ||||
Net Book Value | [1] | $ 981,333 | 981,333 | $ 998,022 | ||
Realized Gain/(Loss) | 2,082 | $ 63,704 | 963 | 96,341 | ||
2019 Disposal Properties | ||||||
Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Net Sales Proceeds | 22,913 | |||||
Net Book Value | 21,769 | 21,769 | ||||
Realized Gain/(Loss) | 1,144 | |||||
2019 Disposal Properties | Condominium | Las Vegas, NV | ||||||
Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Net Sales Proceeds | 0 | |||||
Net Book Value | $ 0 | 0 | ||||
Realized Gain/(Loss) | $ 0 | |||||
Properties | property | 0 | 0 | ||||
Units Sold | property | 0 | |||||
Units Remaining | property | 1 | |||||
2019 Disposal Properties | Condominium | Miami, FL | ||||||
Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Net Sales Proceeds | $ 4,195 | |||||
Net Book Value | $ 3,796 | 3,796 | ||||
Realized Gain/(Loss) | $ 399 | |||||
Properties | property | 0 | 0 | ||||
Units Sold | property | 14 | |||||
Units Remaining | property | 8 | |||||
2019 Disposal Properties | Diversified | Wayne, NJ | ||||||
Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Net Sales Proceeds | $ 1,729 | |||||
Net Book Value | $ 4,799 | 4,799 | ||||
Realized Gain/(Loss) | $ (3,070) | |||||
Properties | property | 1 | 1 | ||||
Units Sold | property | 0 | |||||
Units Remaining | property | 0 | |||||
2019 Disposal Properties | Diversified | Grand Rapids, MI | ||||||
Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Net Sales Proceeds | $ 10,019 | |||||
Net Book Value | $ 8,254 | 8,254 | ||||
Realized Gain/(Loss) | $ 1,765 | |||||
Properties | property | 1 | 1 | ||||
Units Sold | property | 0 | |||||
Units Remaining | property | 0 | |||||
2019 Disposal Properties | Diversified | Grand Rapids, MI | ||||||
Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Net Sales Proceeds | $ 6,970 | |||||
Net Book Value | $ 4,920 | 4,920 | ||||
Realized Gain/(Loss) | $ 2,050 | |||||
Properties | property | 1 | 1 | ||||
Units Sold | property | 0 | |||||
Units Remaining | property | 0 | |||||
2018 Disposal Properties | ||||||
Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Net Sales Proceeds | 213,120 | |||||
Net Book Value | 118,710 | 118,710 | ||||
Realized Gain/(Loss) | 94,410 | |||||
2018 Disposal Properties | Condominium | Las Vegas, NV | ||||||
Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Net Sales Proceeds | 6,228 | |||||
Net Book Value | $ 3,116 | 3,116 | ||||
Realized Gain/(Loss) | $ 3,112 | |||||
Properties | property | 0 | 0 | ||||
Units Sold | property | 8 | |||||
Units Remaining | property | 5 | |||||
2018 Disposal Properties | Condominium | Miami, FL | ||||||
Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Net Sales Proceeds | $ 4,844 | |||||
Net Book Value | $ 3,987 | 3,987 | ||||
Realized Gain/(Loss) | $ 857 | |||||
Properties | property | 0 | 0 | ||||
Units Sold | property | 18 | |||||
Units Remaining | property | 30 | |||||
2018 Disposal Properties | Diversified | El Monte, CA | ||||||
Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Net Sales Proceeds | $ 71,807 | |||||
Net Book Value | $ 52,610 | 52,610 | ||||
Realized Gain/(Loss) | $ 19,197 | |||||
Properties | property | 1 | 1 | ||||
Units Sold | property | 0 | |||||
Units Remaining | property | 0 | |||||
2018 Disposal Properties | Diversified | El Monte, CA | Third Party Investor | ||||||
Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Realized Gain/(Loss) | $ 7,000 | |||||
2018 Disposal Properties | Diversified | Richmond, VA | ||||||
Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Net Sales Proceeds | 20,966 | |||||
Net Book Value | $ 11,370 | 11,370 | ||||
Realized Gain/(Loss) | $ 9,596 | |||||
Properties | property | 1 | 1 | ||||
Units Sold | property | 0 | |||||
Units Remaining | property | 0 | |||||
2018 Disposal Properties | Diversified | Richmond, VA | Third Party Investor | ||||||
Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Realized Gain/(Loss) | $ 400 | |||||
2018 Disposal Properties | Diversified | St. Paul, MN | ||||||
Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Net Sales Proceeds | 109,275 | |||||
Net Book Value | $ 47,627 | 47,627 | ||||
Realized Gain/(Loss) | $ 61,648 | |||||
Properties | property | 4 | 4 | ||||
Units Sold | property | 0 | |||||
Units Remaining | property | 0 | |||||
2018 Disposal Properties | Diversified | St. Paul, MN | Third Party Investor | ||||||
Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Realized Gain/(Loss) | $ 7,900 | |||||
[1] | Includes amounts relating to consolidated variable interest entities. See Note 10 . |
INVESTMENT IN AND ADVANCES TO_3
INVESTMENT IN AND ADVANCES TO UNCONSOLIDATED JOINT VENTURES - Additional Information (Details) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||||
Apr. 30, 2012 | Sep. 30, 2019USD ($)property | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($)property | Sep. 30, 2018USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Mar. 22, 2013 | ||
Schedule of Equity Method Investments [Line Items] | |||||||||
Investments in and advances to unconsolidated joint ventures | [1] | $ 51,419,000 | $ 51,419,000 | $ 40,354,000 | |||||
Distributions from operations of investment in unconsolidated joint ventures | 3,067,000 | $ 0 | |||||||
Income (expenses) from investment | (4,595,000) | $ (3,415,000) | (12,029,000) | (9,788,000) | |||||
Grace Lake JV, LLC | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Investments in and advances to unconsolidated joint ventures | $ 3,799,000 | $ 3,799,000 | 5,316,000 | ||||||
Percentage of equity kicker received with right to convert upon capital event | 25.00% | ||||||||
Preferred return used to determine distribution of excess cash flow | 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% | ||||||||
Percentage of investment of operating partner | 81.00% | ||||||||
Distributions from operations of investment in unconsolidated joint ventures | $ 3,100,000 | 1,300,000 | |||||||
Grace Lake JV, LLC | LP Units | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Ownership interest | 19.00% | ||||||||
Grace Lake JV, LLC | Limited liability company | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Ownership interest | 19.00% | 19.00% | |||||||
24 Second Avenue Holdings LLC | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Investments in and advances to unconsolidated joint ventures | $ 47,620,000 | $ 47,620,000 | 35,038,000 | ||||||
Income (expenses) from investment | $ 600,000 | (200,000) | 2,100,000 | (700,000) | |||||
Interest costs capitalized | $ 400,000 | $ 100,000 | $ 1,100,000 | ||||||
24 Second Avenue Holdings LLC | Apartment Building | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Number of real estate properties | property | 30 | 30 | |||||||
Number of real estate properties, under contract | property | 1 | 1 | |||||||
Real estate properties, under contract | $ 1,200,000 | $ 1,200,000 | |||||||
24 Second Avenue Holdings LLC | Apartment Building | Real Estate Property Sold | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Number of real estate properties, under contract | property | 17 | 17 | |||||||
Real estate properties, under contract | $ 47,300,000 | $ 47,300,000 | |||||||
24 Second Avenue Holdings LLC | Other | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Number of real estate properties | property | 1 | 1 | |||||||
24 Second Avenue Holdings LLC | Mezzanine Loan | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Committed amount on credit agreement | $ 6,500,000 | ||||||||
24 Second Avenue Holdings LLC | Co-venturer | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Loans payable outstanding from unconsolidated joint venture | $ 46,700,000 | ||||||||
24 Second Avenue Holdings LLC | Co-venturer | Construction Loan | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Common equity interest | 35,000,000 | ||||||||
Preferred equity position | 35,000,000 | ||||||||
Loan refinance | 50,400,000 | ||||||||
Committed amount on credit agreement | $ 48,100,000 | ||||||||
Remaining capital commitment to operating partner | $ 0 | $ 0 | |||||||
Maximum | 24 Second Avenue Holdings LLC | Apartment Building | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Real estate properties, under contract, deposit | 15.00% | 15.00% | |||||||
[1] | Includes amounts relating to consolidated variable interest entities. See Note 10 . |
INVESTMENT IN AND ADVANCES TO_4
INVESTMENT IN AND ADVANCES TO UNCONSOLIDATED JOINT VENTURES - Investments in Unconsolidated Joint Ventures (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | |
Schedule of Equity Method Investments [Line Items] | |||
Investment in unconsolidated joint ventures | [1] | $ 51,419 | $ 40,354 |
Grace Lake JV, LLC | |||
Schedule of Equity Method Investments [Line Items] | |||
Investment in unconsolidated joint ventures | 3,799 | 5,316 | |
24 Second Avenue Holdings LLC | |||
Schedule of Equity Method Investments [Line Items] | |||
Investment in unconsolidated joint ventures | $ 47,620 | $ 35,038 | |
[1] | Includes amounts relating to consolidated variable interest entities. See Note 10 . |
INVESTMENT IN AND ADVANCES TO_5
INVESTMENT IN AND ADVANCES TO UNCONSOLIDATED JOINT VENTURES - Summary of Allocated Earnings (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Schedule of Equity Method Investments [Line Items] | ||||
Earnings (loss) from investment in unconsolidated joint ventures | $ 1,094 | $ 401 | $ 3,617 | $ 466 |
Grace Lake JV, LLC | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Earnings (loss) from investment in unconsolidated joint ventures | 517 | 605 | 1,549 | 1,138 |
24 Second Avenue Holdings LLC | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Earnings (loss) from investment in unconsolidated joint ventures | $ 577 | $ (204) | $ 2,068 | $ (672) |
INVESTMENT IN AND ADVANCES TO_6
INVESTMENT IN AND ADVANCES TO UNCONSOLIDATED JOINT VENTURES - Results from Operations of the Unconsolidated Joint Ventures (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Financial Position | |||||
Total assets | $ 123,871 | $ 123,871 | $ 167,837 | ||
Total liabilities | 80,333 | 80,333 | 116,667 | ||
Partners’/members’ capital | 43,538 | 43,538 | $ 51,170 | ||
Results from Operations | |||||
Total revenues | 3,915 | $ 4,351 | 14,945 | $ 13,671 | |
Total expenses | 4,595 | 3,415 | 12,029 | 9,788 | |
Net income (loss) | $ (680) | $ 936 | $ 2,916 | $ 3,883 |
DEBT OBLIGATIONS, NET - Schedul
DEBT OBLIGATIONS, NET - Schedule of Company's Debt Obligations (Details) $ in Thousands | May 24, 2019 | Sep. 30, 2019USD ($)Extension | Dec. 31, 2018USD ($)Extension | Dec. 27, 2018USD ($) | Dec. 21, 2017USD ($) | Oct. 17, 2017USD ($) |
Assets Sold under Agreements to Repurchase [Line Items] | ||||||
Debt Obligations Outstanding | $ 1,786,048 | $ 663,685 | ||||
Debt obligations | 4,860,687 | |||||
Carrying Amount of Collateral | 0 | 0 | ||||
Committed Loan Repurchase Facility | ||||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||||
Committed Financing | 1,750,000 | 1,750,000 | $ 100,000 | |||
Debt Obligations Outstanding | 760,521 | 497,531 | ||||
Committed but Unfunded | 989,479 | 1,252,469 | ||||
Carrying Amount of Collateral | 1,158,592 | 744,310 | ||||
Fair Value of Collateral | 1,161,668 | 745,103 | ||||
Length of additional extension maturity periods | 1 year | |||||
Committed Loan Repurchase Facility | 10/1/2020 | ||||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||||
Committed Financing | 600,000 | |||||
Debt Obligations Outstanding | 180,597 | |||||
Committed but Unfunded | 419,403 | |||||
Carrying Amount of Collateral | 262,642 | |||||
Fair Value of Collateral | $ 261,602 | |||||
Number of extension maturity periods | Extension | 2 | |||||
Length of extension options | 12 months | |||||
Committed Loan Repurchase Facility | 2/24/2022 | ||||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||||
Committed Financing | 600,000 | |||||
Debt Obligations Outstanding | 191,031 | |||||
Committed but Unfunded | 408,969 | |||||
Carrying Amount of Collateral | 283,517 | |||||
Fair Value of Collateral | $ 283,746 | |||||
Number of extension maturity periods | Extension | 2 | |||||
Length of extension options | 12 months | |||||
Committed Loan Repurchase Facility | 5/24/2020 | ||||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||||
Committed Financing | $ 350,000 | |||||
Debt Obligations Outstanding | 63,996 | |||||
Committed but Unfunded | 286,004 | |||||
Carrying Amount of Collateral | 100,354 | |||||
Fair Value of Collateral | $ 102,616 | |||||
Number of extension maturity periods | Extension | 1 | |||||
Length of extension options | 12 months | |||||
Committed Loan Repurchase Facility | 5/24/2019 | ||||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||||
Committed Financing | $ 350,000 | |||||
Debt Obligations Outstanding | 63,679 | |||||
Committed but Unfunded | 286,321 | |||||
Carrying Amount of Collateral | 87,385 | |||||
Fair Value of Collateral | $ 88,762 | |||||
Number of extension maturity periods | Extension | 2 | |||||
Length of extension options | 12 months | |||||
Committed Loan Repurchase Facility | 4/10/2020 | ||||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||||
Committed Financing | $ 300,000 | |||||
Debt Obligations Outstanding | 211,350 | |||||
Committed but Unfunded | 88,650 | |||||
Carrying Amount of Collateral | 343,448 | |||||
Fair Value of Collateral | $ 343,448 | |||||
Number of extension maturity periods | Extension | 1 | |||||
Length of extension options | 364 days | |||||
Committed Loan Repurchase Facility | 4/7/2019 | ||||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||||
Committed Financing | $ 300,000 | |||||
Debt Obligations Outstanding | 120,631 | |||||
Committed but Unfunded | 179,369 | |||||
Carrying Amount of Collateral | 204,747 | |||||
Fair Value of Collateral | $ 205,219 | |||||
Number of extension maturity periods | Extension | 1 | |||||
Length of extension options | 364 days | |||||
Number of additional extension maturity periods | Extension | 1 | |||||
Additional length of period of extension options | 364 days | |||||
Committed Loan Repurchase Facility | 5/6/2021 | ||||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||||
Committed Financing | $ 300,000 | $ 300,000 | ||||
Debt Obligations Outstanding | 116,043 | 79,886 | ||||
Committed but Unfunded | 183,957 | 220,114 | ||||
Carrying Amount of Collateral | 174,001 | 117,382 | ||||
Fair Value of Collateral | $ 174,353 | $ 117,366 | ||||
Number of extension maturity periods | Extension | 1 | 1 | ||||
Length of extension options | 12 months | 12 months | ||||
Number of additional extension maturity periods | Extension | 2 | 2 | ||||
Length of additional extension maturity periods | 6 months | 6 months | ||||
Committed Loan Repurchase Facility | 7/20/2021 | ||||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||||
Committed Financing | $ 100,000 | $ 100,000 | ||||
Debt Obligations Outstanding | 87,174 | 52,738 | ||||
Committed but Unfunded | 12,826 | 47,262 | ||||
Carrying Amount of Collateral | 135,373 | 72,154 | ||||
Fair Value of Collateral | $ 135,606 | $ 72,154 | ||||
Number of extension maturity periods | Extension | 1 | 1 | ||||
Length of extension options | 12 months | 12 months | ||||
Committed Loan Repurchase Facility | 12/26/2019 | ||||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||||
Committed Financing | $ 100,000 | |||||
Debt Obligations Outstanding | 0 | |||||
Committed but Unfunded | 100,000 | |||||
Carrying Amount of Collateral | 0 | |||||
Fair Value of Collateral | 0 | |||||
Committed Loan Repurchase Facility | 3/26/2020 | ||||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||||
Committed Financing | $ 100,000 | |||||
Debt Obligations Outstanding | 90,927 | |||||
Committed but Unfunded | $ 9,073 | |||||
Interest rate | 4.03% | |||||
Carrying Amount of Collateral | $ 121,899 | |||||
Fair Value of Collateral | 121,899 | |||||
Committed Securities Repurchase Facility | ||||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||||
Committed Financing | 400,000 | |||||
Committed Securities Repurchase Facility | 3/4/2021 | ||||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||||
Committed Financing | 400,000 | |||||
Debt Obligations Outstanding | 85,457 | |||||
Committed but Unfunded | 314,543 | |||||
Carrying Amount of Collateral | 103,547 | |||||
Fair Value of Collateral | 103,547 | |||||
Committed Securities Repurchase Facility | 9/30/2019 | ||||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||||
Committed Financing | 400,000 | |||||
Debt Obligations Outstanding | 0 | |||||
Committed but Unfunded | 400,000 | |||||
Carrying Amount of Collateral | 0 | |||||
Fair Value of Collateral | 0 | |||||
Uncommitted Securities Repurchase Facility | Various Date | ||||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||||
Debt Obligations Outstanding | 940,070 | 166,154 | ||||
Carrying Amount of Collateral | 1,047,663 | 187,803 | ||||
Fair Value of Collateral | 1,047,663 | 187,803 | ||||
Restricted securities held-to-maturity | 2,300 | 3,000 | ||||
Securities phased in secondary market | 6,000 | |||||
Total Repurchase Facilities | ||||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||||
Committed Financing | 2,150,000 | 2,150,000 | ||||
Debt Obligations Outstanding | 1,786,048 | 663,685 | ||||
Committed but Unfunded | 1,304,022 | 1,652,469 | ||||
Carrying Amount of Collateral | 2,309,802 | 932,113 | ||||
Fair Value of Collateral | 2,312,878 | 932,906 | ||||
Revolving Credit Facility | 2/11/2020 | ||||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||||
Committed Financing | 266,430 | |||||
Debt Obligations Outstanding | 0 | |||||
Committed but Unfunded | $ 266,430 | |||||
Number of extension maturity periods | Extension | 3 | |||||
Length of extension options | 12 months | |||||
Revolving Credit Facility | 2/11/2019 | ||||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||||
Committed Financing | 266,430 | |||||
Debt Obligations Outstanding | 0 | |||||
Committed but Unfunded | $ 266,430 | |||||
Number of extension maturity periods | Extension | 4 | |||||
Length of extension options | 12 months | |||||
Mortgage Loan Financing | Various Date | ||||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||||
Committed Financing | $ 723,313 | $ 743,902 | ||||
Debt Obligations Outstanding | 723,313 | 743,902 | ||||
Committed but Unfunded | 0 | 0 | ||||
Carrying Amount of Collateral | 902,656 | 939,362 | ||||
Fair Value of Collateral | 1,093,952 | 1,108,968 | ||||
CLO Debt | Various Date | ||||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||||
Committed Financing | 117,760 | 601,543 | ||||
Debt Obligations Outstanding | 117,760 | 601,543 | ||||
Committed but Unfunded | 0 | 0 | ||||
Carrying Amount of Collateral | 274,149 | 710,502 | $ 431,500 | $ 456,900 | ||
Fair Value of Collateral | 274,523 | 710,737 | ||||
Unamortized debt issuance costs | 400 | 2,600 | ||||
Participation Financing - Mortgage Loan Receivable | ||||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||||
Debt Obligations Outstanding | 0 | 2,500 | ||||
Participation Financing - Mortgage Loan Receivable | 6/6/2019 | ||||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||||
Committed Financing | 2,453 | |||||
Debt Obligations Outstanding | 2,453 | |||||
Committed but Unfunded | $ 0 | |||||
Interest rate | 17.00% | |||||
Carrying Amount of Collateral | $ 2,453 | |||||
Fair Value of Collateral | 2,453 | |||||
Borrowings from the FHLB | Various Date | ||||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||||
Committed Financing | 1,945,795 | 1,933,522 | ||||
Debt Obligations Outstanding | 1,076,449 | 1,286,000 | ||||
Committed but Unfunded | 869,346 | 647,522 | ||||
Carrying Amount of Collateral | 1,411,022 | 1,652,952 | ||||
Fair Value of Collateral | 1,422,246 | 1,655,150 | ||||
Restricted securities held-to-maturity | 9,900 | 9,700 | ||||
Senior Unsecured Notes | ||||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||||
Unamortized debt issuance costs | 9,084 | |||||
Senior Unsecured Notes | Various Date | ||||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||||
Debt issued | 1,166,201 | 1,166,201 | ||||
Senior Unsecured Notes | 1,157,117 | 1,154,991 | ||||
Committed but Unfunded | 0 | 0 | ||||
Unamortized debt issuance costs | 9,100 | 11,200 | ||||
Total Debt Obligations | ||||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||||
Debt issued | 6,369,499 | 6,864,051 | ||||
Debt obligations | 4,860,687 | 4,452,574 | ||||
Committed but Unfunded | 2,439,798 | 2,566,421 | ||||
Carrying Amount of Collateral | 4,897,629 | 4,237,382 | ||||
Fair Value of Collateral | $ 5,103,599 | $ 4,410,214 | ||||
Minimum | Committed Loan Repurchase Facility | 10/1/2020 | ||||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||||
Interest rate | 4.21% | |||||
Minimum | Committed Loan Repurchase Facility | 2/24/2022 | ||||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||||
Interest rate | 3.78% | |||||
Minimum | Committed Loan Repurchase Facility | 5/24/2020 | ||||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||||
Interest rate | 4.25% | |||||
Minimum | Committed Loan Repurchase Facility | 5/24/2019 | ||||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||||
Interest rate | 4.68% | |||||
Minimum | Committed Loan Repurchase Facility | 4/10/2020 | ||||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||||
Interest rate | 4.00% | |||||
Minimum | Committed Loan Repurchase Facility | 4/7/2019 | ||||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||||
Interest rate | 4.46% | |||||
Minimum | Committed Loan Repurchase Facility | 5/6/2021 | ||||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||||
Interest rate | 3.81% | 4.40% | ||||
Minimum | Committed Loan Repurchase Facility | 7/20/2021 | ||||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||||
Interest rate | 4.02% | 4.58% | ||||
Minimum | Committed Loan Repurchase Facility | 3/4/2021 | ||||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||||
Interest rate | 2.38% | |||||
Minimum | Uncommitted Securities Repurchase Facility | Various Date | ||||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||||
Interest rate | 2.45% | 2.99% | ||||
Minimum | Mortgage Loan Financing | Various Date | ||||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||||
Interest rate | 4.25% | 4.25% | ||||
Minimum | CLO Debt | Various Date | ||||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||||
Interest rate | 3.40% | 3.34% | ||||
Minimum | Borrowings from the FHLB | Various Date | ||||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||||
Interest rate | 1.47% | 1.18% | ||||
Minimum | Senior Unsecured Notes | Various Date | ||||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||||
Interest rate | 5.25% | 5.25% | ||||
Maximum | Committed Loan Repurchase Facility | 10/1/2020 | ||||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||||
Interest rate | 4.96% | |||||
Maximum | Committed Loan Repurchase Facility | 2/24/2022 | ||||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||||
Interest rate | 4.28% | |||||
Maximum | Committed Loan Repurchase Facility | 5/24/2020 | ||||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||||
Interest rate | 4.60% | |||||
Maximum | Committed Loan Repurchase Facility | 5/24/2019 | ||||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||||
Interest rate | 4.98% | |||||
Maximum | Committed Loan Repurchase Facility | 4/10/2020 | ||||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||||
Interest rate | 4.53% | |||||
Maximum | Committed Loan Repurchase Facility | 4/7/2019 | ||||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||||
Interest rate | 4.96% | |||||
Maximum | Committed Loan Repurchase Facility | 5/6/2021 | ||||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||||
Interest rate | 4.06% | 4.94% | ||||
Maximum | Committed Loan Repurchase Facility | 7/20/2021 | ||||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||||
Interest rate | 4.28% | 4.96% | ||||
Maximum | Committed Loan Repurchase Facility | 3/4/2021 | ||||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||||
Interest rate | 2.87% | |||||
Maximum | Uncommitted Securities Repurchase Facility | Various Date | ||||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||||
Interest rate | 3.78% | 4.55% | ||||
Maximum | Mortgage Loan Financing | Various Date | ||||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||||
Interest rate | 6.75% | 7.00% | ||||
Maximum | CLO Debt | Various Date | ||||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||||
Interest rate | 5.62% | 6.06% | ||||
Maximum | Borrowings from the FHLB | Various Date | ||||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||||
Interest rate | 2.95% | 3.01% | ||||
Maximum | Senior Unsecured Notes | Various Date | ||||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||||
Interest rate | 5.875% | 5.875% |
DEBT OBLIGATIONS, NET - Additio
DEBT OBLIGATIONS, NET - Additional Information (Details) $ in Thousands | May 24, 2019 | Feb. 26, 2019Extension | Feb. 06, 2019USD ($) | Jul. 20, 2018 | Apr. 03, 2018USD ($) | Dec. 06, 2017USD ($) | Sep. 25, 2017USD ($) | Mar. 16, 2017USD ($) | Aug. 01, 2014USD ($) | Sep. 30, 2019USD ($)counterparty | Sep. 30, 2018USD ($) | Mar. 31, 2017USD ($) | Sep. 30, 2019USD ($)counterpartyagreement | Sep. 30, 2018USD ($)agreement | Dec. 31, 2018USD ($) | Dec. 31, 2016USD ($) | Jan. 01, 2021USD ($) | Apr. 01, 2020USD ($) | Dec. 27, 2018USD ($) | May 07, 2018USD ($) | Dec. 21, 2017USD ($) | Oct. 17, 2017USD ($) | Feb. 24, 2016USD ($) | Feb. 19, 2016 |
Committed Loan and Securities Repurchase Facilities | ||||||||||||||||||||||||
Gross amounts of recognized liabilities | $ 1,786,048 | $ 1,786,048 | $ 663,685 | |||||||||||||||||||||
Mortgage loan receivables held for investment, net, at amortized cost: | ||||||||||||||||||||||||
Amortization of premiums | 1,300 | $ 762 | ||||||||||||||||||||||
Mortgage loan and financing related to property sales | $ 6,600 | |||||||||||||||||||||||
Gain (loss) on extinguishment/defeasance of debt | $ (1,100) | 0 | $ (4,323) | (1,070) | (4,392) | |||||||||||||||||||
Collateralized Debt Obligations [Abstract] | ||||||||||||||||||||||||
Gross amounts offset in the balance sheet | $ 0 | 0 | 0 | |||||||||||||||||||||
Proceeds from borrowings under debt obligations | $ 10,186,669 | $ 4,401,648 | ||||||||||||||||||||||
Borrowings from Federal Home Loan Bank (FHLB) [Abstract] | ||||||||||||||||||||||||
Percent of FHLB advances to total debt obligations outstanding | 22.10% | 22.10% | ||||||||||||||||||||||
Retained earnings, appropriated | $ 829,300 | $ 829,300 | ||||||||||||||||||||||
Tuebor | ||||||||||||||||||||||||
Borrowings from Federal Home Loan Bank (FHLB) [Abstract] | ||||||||||||||||||||||||
Amount restricted from transfer | 1,900,000 | 1,900,000 | ||||||||||||||||||||||
Credit Agreement and Revolving Credit Facility | ||||||||||||||||||||||||
Borrowing Under Credit Facilties and Debt Issuance Costs [Abstract] | ||||||||||||||||||||||||
Unamortized debt issuance costs | $ 6,800 | $ 6,800 | 6,300 | |||||||||||||||||||||
LCFH | ||||||||||||||||||||||||
Borrowings from Federal Home Loan Bank (FHLB) [Abstract] | ||||||||||||||||||||||||
Ownership interest in LCFH | 89.80% | 89.80% | ||||||||||||||||||||||
LCFC | LCFH | ||||||||||||||||||||||||
Borrowings from Federal Home Loan Bank (FHLB) [Abstract] | ||||||||||||||||||||||||
Ownership interest in LCFH | 100.00% | 100.00% | ||||||||||||||||||||||
Mortgage loan financing | ||||||||||||||||||||||||
Committed Loan and Securities Repurchase Facilities | ||||||||||||||||||||||||
Number of agreements | agreement | 9 | 11 | ||||||||||||||||||||||
Mortgage loan receivables held for investment, net, at amortized cost: | ||||||||||||||||||||||||
Mortgage loan financing | $ 723,300 | $ 723,300 | 743,900 | |||||||||||||||||||||
Net unamortized premiums | 5,300 | 5,300 | 5,800 | |||||||||||||||||||||
Amortization of premiums | 500 | 300 | 1,300 | $ 800 | ||||||||||||||||||||
Pledged assets, real estate and lease intangibles, net | 902,700 | $ 902,700 | $ 939,400 | |||||||||||||||||||||
Borrowings from the Federal Home Loan Bank | Tuebor | ||||||||||||||||||||||||
Committed Loan and Securities Repurchase Facilities | ||||||||||||||||||||||||
Debt borrowings term | 5 years | 5 years 9 months | ||||||||||||||||||||||
Borrowings from Federal Home Loan Bank (FHLB) [Abstract] | ||||||||||||||||||||||||
Maximum advance limit | $ 2,000,000 | |||||||||||||||||||||||
Advance rates of total assets | 40.00% | |||||||||||||||||||||||
Advance rates of total equity | 150.00% | |||||||||||||||||||||||
FHLB borrowings outstanding | 1,100,000 | $ 1,100,000 | $ 1,300,000 | |||||||||||||||||||||
Additional committed term financing available from FHLB | $ 869,300 | $ 869,300 | $ 647,500 | |||||||||||||||||||||
Weighted average term | 2 years 3 months 18 days | 2 years 6 months | ||||||||||||||||||||||
Weighted average interest rate | 2.50% | 2.50% | 2.55% | |||||||||||||||||||||
Maximum percent of FHLB advances to total assets | 40.00% | |||||||||||||||||||||||
Borrowings from the Federal Home Loan Bank | Tuebor | CMBS and U.S. Agency Securities | ||||||||||||||||||||||||
Borrowings from Federal Home Loan Bank (FHLB) [Abstract] | ||||||||||||||||||||||||
Collateral for debt instrument | $ 721,500 | $ 721,500 | $ 1,000,000 | |||||||||||||||||||||
Borrowings from the Federal Home Loan Bank | Tuebor | First mortgage commercial real estate loans | ||||||||||||||||||||||||
Borrowings from Federal Home Loan Bank (FHLB) [Abstract] | ||||||||||||||||||||||||
Collateral for debt instrument | 689,500 | 689,500 | $ 637,200 | |||||||||||||||||||||
Borrowings from the Federal Home Loan Bank | Scenario, Forecast | Tuebor | ||||||||||||||||||||||||
Borrowings from Federal Home Loan Bank (FHLB) [Abstract] | ||||||||||||||||||||||||
Maximum advance limit | $ 750,000 | $ 1,500,000 | ||||||||||||||||||||||
Senior Unsecured Notes | Senior Notes Due 2021 | ||||||||||||||||||||||||
Borrowing Under Credit Facilties and Debt Issuance Costs [Abstract] | ||||||||||||||||||||||||
Unamortized debt issuance costs | $ 400 | |||||||||||||||||||||||
Mortgage loan receivables held for investment, net, at amortized cost: | ||||||||||||||||||||||||
Stated interest rate on debt instrument | 5.875% | |||||||||||||||||||||||
Gain (loss) on extinguishment/defeasance of debt | 5,100 | |||||||||||||||||||||||
Borrowings from Federal Home Loan Bank (FHLB) [Abstract] | ||||||||||||||||||||||||
Loan refinance | $ 300,000 | $ 266,200 | $ 266,200 | |||||||||||||||||||||
Debt instrument, minimum number of days to give notice for redemption without penalty | 30 days | |||||||||||||||||||||||
Debt instrument, maximum number of days to give notice for redemption without penalty | 60 days | |||||||||||||||||||||||
Debt instrument, authorized repurchase amount | $ 100,000 | |||||||||||||||||||||||
Debt instrument, repurchase price amount | 28,200 | |||||||||||||||||||||||
Debt instrument, repurchased face amount | $ 33,800 | |||||||||||||||||||||||
Senior Unsecured Notes | Senior Notes Due 2022 | ||||||||||||||||||||||||
Mortgage loan receivables held for investment, net, at amortized cost: | ||||||||||||||||||||||||
Stated interest rate on debt instrument | 5.25% | |||||||||||||||||||||||
Borrowings from Federal Home Loan Bank (FHLB) [Abstract] | ||||||||||||||||||||||||
Loan refinance | $ 500,000 | |||||||||||||||||||||||
Debt instrument, minimum number of days to give notice for redemption without penalty | 15 days | |||||||||||||||||||||||
Debt instrument, maximum number of days to give notice for redemption without penalty | 60 days | |||||||||||||||||||||||
Senior Unsecured Notes | Senior Notes Due 2025 | ||||||||||||||||||||||||
Mortgage loan receivables held for investment, net, at amortized cost: | ||||||||||||||||||||||||
Stated interest rate on debt instrument | 5.25% | |||||||||||||||||||||||
Borrowings from Federal Home Loan Bank (FHLB) [Abstract] | ||||||||||||||||||||||||
Loan refinance | $ 400,000 | |||||||||||||||||||||||
Debt instrument, minimum number of days to give notice for redemption without penalty | 15 days | |||||||||||||||||||||||
Debt instrument, maximum number of days to give notice for redemption without penalty | 60 days | |||||||||||||||||||||||
Maximum | Mortgage loan financing | ||||||||||||||||||||||||
Mortgage loan receivables held for investment, net, at amortized cost: | ||||||||||||||||||||||||
Stated interest rate on debt instrument | 6.75% | 6.75% | ||||||||||||||||||||||
Maximum | Borrowings from the Federal Home Loan Bank | Tuebor | ||||||||||||||||||||||||
Borrowing Under Credit Facilties and Debt Issuance Costs [Abstract] | ||||||||||||||||||||||||
Advance rates | 95.70% | 95.20% | ||||||||||||||||||||||
Mortgage loan receivables held for investment, net, at amortized cost: | ||||||||||||||||||||||||
Stated interest rate on debt instrument | 2.95% | 2.95% | 3.01% | |||||||||||||||||||||
Minimum | Mortgage loan financing | ||||||||||||||||||||||||
Mortgage loan receivables held for investment, net, at amortized cost: | ||||||||||||||||||||||||
Stated interest rate on debt instrument | 4.25% | 4.25% | ||||||||||||||||||||||
Minimum | Borrowings from the Federal Home Loan Bank | Tuebor | ||||||||||||||||||||||||
Borrowing Under Credit Facilties and Debt Issuance Costs [Abstract] | ||||||||||||||||||||||||
Advance rates | 61.00% | 56.40% | ||||||||||||||||||||||
Mortgage loan receivables held for investment, net, at amortized cost: | ||||||||||||||||||||||||
Stated interest rate on debt instrument | 1.47% | 1.47% | 1.18% | |||||||||||||||||||||
Revolving credit facility | ||||||||||||||||||||||||
Committed Loan and Securities Repurchase Facilities | ||||||||||||||||||||||||
Committed amount on credit agreement | $ 300,000 | |||||||||||||||||||||||
Debt borrowings term | 1 year | |||||||||||||||||||||||
Revolving credit facility | One-Month LIBOR | ||||||||||||||||||||||||
Committed Loan and Securities Repurchase Facilities | ||||||||||||||||||||||||
Committed amount on credit agreement | $ 266,400 | $ 266,400 | ||||||||||||||||||||||
Basis spread on variable rate | 25.00% | |||||||||||||||||||||||
Number of extension maturity periods | Extension | 2 | |||||||||||||||||||||||
Length of extension options | 12 months | |||||||||||||||||||||||
Mortgage loan receivables held for investment, net, at amortized cost: | ||||||||||||||||||||||||
Stated interest rate on debt instrument | 3.25% | 3.25% | ||||||||||||||||||||||
Revolving credit facility | Maximum | ||||||||||||||||||||||||
Committed Loan and Securities Repurchase Facilities | ||||||||||||||||||||||||
Committed amount on credit agreement | $ 450,000 | |||||||||||||||||||||||
Revolving credit facility | Minimum | ||||||||||||||||||||||||
Committed Loan and Securities Repurchase Facilities | ||||||||||||||||||||||||
Committed amount on credit agreement | $ 350,000 | |||||||||||||||||||||||
Letters of credit | ||||||||||||||||||||||||
Committed Loan and Securities Repurchase Facilities | ||||||||||||||||||||||||
Committed amount on credit agreement | $ 25,000 | $ 25,000 | ||||||||||||||||||||||
Committed Loan Repurchase Facility | ||||||||||||||||||||||||
Committed Loan and Securities Repurchase Facilities | ||||||||||||||||||||||||
Number of agreements | agreement | 6 | |||||||||||||||||||||||
Committed amount on credit agreement | 1,800,000 | $ 1,800,000 | ||||||||||||||||||||||
Committed financing | 1,750,000 | 1,750,000 | $ 1,750,000 | $ 100,000 | ||||||||||||||||||||
Length of additional extension maturity periods | 1 year | |||||||||||||||||||||||
Gross amounts of recognized liabilities | 760,521 | 760,521 | 497,531 | |||||||||||||||||||||
Collateralized Debt Obligations [Abstract] | ||||||||||||||||||||||||
Gross amounts offset in the balance sheet | 1,158,592 | 1,158,592 | 744,310 | |||||||||||||||||||||
Term master repurchase agreement | ||||||||||||||||||||||||
Committed Loan and Securities Repurchase Facilities | ||||||||||||||||||||||||
Committed financing | 400,000 | 400,000 | ||||||||||||||||||||||
Total Repurchase Facilities | ||||||||||||||||||||||||
Committed Loan and Securities Repurchase Facilities | ||||||||||||||||||||||||
Committed financing | $ 2,150,000 | $ 2,150,000 | 2,150,000 | |||||||||||||||||||||
Repurchase agreements, number of counterparties | counterparty | 10 | 10 | ||||||||||||||||||||||
Gross amounts of recognized liabilities | $ 1,786,048 | $ 1,786,048 | 663,685 | |||||||||||||||||||||
Collateralized Debt Obligations [Abstract] | ||||||||||||||||||||||||
Gross amounts offset in the balance sheet | $ 2,309,802 | $ 2,309,802 | 932,113 | |||||||||||||||||||||
Total Repurchase Facilities | Deutshe Bank, J.P. Morgan and Wells Fargo | ||||||||||||||||||||||||
Committed Loan and Securities Repurchase Facilities | ||||||||||||||||||||||||
Repurchase agreements, number of counterparties | counterparty | 2 | 2 | ||||||||||||||||||||||
Excess collateral over amounts borrowed under repurchase agreements | $ 82,000 | $ 82,000 | ||||||||||||||||||||||
Ratio indebtedness over total equity | 5.00% | |||||||||||||||||||||||
Haircut on repurchase agreements | 22.80% | 22.80% | ||||||||||||||||||||||
Uncommitted securities Repurchase Facilities | Various Date | ||||||||||||||||||||||||
Committed Loan and Securities Repurchase Facilities | ||||||||||||||||||||||||
Gross amounts of recognized liabilities | $ 940,070 | $ 940,070 | 166,154 | |||||||||||||||||||||
Collateralized Debt Obligations [Abstract] | ||||||||||||||||||||||||
Gross amounts offset in the balance sheet | $ 1,047,663 | $ 1,047,663 | $ 187,803 | |||||||||||||||||||||
Uncommitted securities Repurchase Facilities | Maximum | ||||||||||||||||||||||||
Borrowing Under Credit Facilties and Debt Issuance Costs [Abstract] | ||||||||||||||||||||||||
Advance rates | 95.00% | |||||||||||||||||||||||
Uncommitted securities Repurchase Facilities | Maximum | Various Date | ||||||||||||||||||||||||
Collateralized Debt Obligations [Abstract] | ||||||||||||||||||||||||
Interest rate | 3.78% | 3.78% | 4.55% | |||||||||||||||||||||
Uncommitted securities Repurchase Facilities | Minimum | ||||||||||||||||||||||||
Borrowing Under Credit Facilties and Debt Issuance Costs [Abstract] | ||||||||||||||||||||||||
Advance rates | 75.00% | |||||||||||||||||||||||
Uncommitted securities Repurchase Facilities | Minimum | Various Date | ||||||||||||||||||||||||
Collateralized Debt Obligations [Abstract] | ||||||||||||||||||||||||
Interest rate | 2.45% | 2.45% | 2.99% | |||||||||||||||||||||
Mortgage loan financing | Various Date | ||||||||||||||||||||||||
Committed Loan and Securities Repurchase Facilities | ||||||||||||||||||||||||
Committed financing | $ 723,313 | $ 723,313 | $ 743,902 | |||||||||||||||||||||
Gross amounts of recognized liabilities | 723,313 | 723,313 | 743,902 | |||||||||||||||||||||
Collateralized Debt Obligations [Abstract] | ||||||||||||||||||||||||
Gross amounts offset in the balance sheet | $ 902,656 | $ 902,656 | $ 939,362 | |||||||||||||||||||||
Mortgage loan financing | Maximum | Various Date | ||||||||||||||||||||||||
Collateralized Debt Obligations [Abstract] | ||||||||||||||||||||||||
Interest rate | 6.75% | 6.75% | 7.00% | |||||||||||||||||||||
Mortgage loan financing | Minimum | Various Date | ||||||||||||||||||||||||
Collateralized Debt Obligations [Abstract] | ||||||||||||||||||||||||
Interest rate | 4.25% | 4.25% | 4.25% | |||||||||||||||||||||
CLO Debt | Various Date | ||||||||||||||||||||||||
Committed Loan and Securities Repurchase Facilities | ||||||||||||||||||||||||
Committed financing | $ 117,760 | $ 117,760 | $ 601,543 | |||||||||||||||||||||
Gross amounts of recognized liabilities | 117,760 | 117,760 | 601,543 | |||||||||||||||||||||
Collateralized Debt Obligations [Abstract] | ||||||||||||||||||||||||
Unamortized debt issuance costs | 400 | 400 | 2,600 | |||||||||||||||||||||
Gross amounts offset in the balance sheet | $ 274,149 | $ 274,149 | $ 710,502 | $ 431,500 | $ 456,900 | |||||||||||||||||||
CLO Debt | Affiliated Entity | Various Date | ||||||||||||||||||||||||
Collateralized Debt Obligations [Abstract] | ||||||||||||||||||||||||
Ownership percentage | 25.00% | 18.50% | ||||||||||||||||||||||
CLO Debt | Maximum | Various Date | ||||||||||||||||||||||||
Collateralized Debt Obligations [Abstract] | ||||||||||||||||||||||||
Interest rate | 5.62% | 5.62% | 6.06% | |||||||||||||||||||||
CLO Debt | Minimum | Various Date | ||||||||||||||||||||||||
Collateralized Debt Obligations [Abstract] | ||||||||||||||||||||||||
Interest rate | 3.40% | 3.40% | 3.34% | |||||||||||||||||||||
CLO Debt | Weighted Average | Various Date | ||||||||||||||||||||||||
Collateralized Debt Obligations [Abstract] | ||||||||||||||||||||||||
Interest rate | 4.97% | 4.97% | ||||||||||||||||||||||
Participation Financing - Mortgage Loan Receivable | ||||||||||||||||||||||||
Committed Loan and Securities Repurchase Facilities | ||||||||||||||||||||||||
Gross amounts of recognized liabilities | $ 0 | $ 0 | $ 2,500 | |||||||||||||||||||||
Collateralized Debt Obligations [Abstract] | ||||||||||||||||||||||||
Proceeds from borrowings under debt obligations | $ 4,000 | |||||||||||||||||||||||
Participation Financing - Mortgage Loan Receivable | Related Reserve IV LLC | Affiliated Entity | B Participation Interest | ||||||||||||||||||||||||
Collateralized Debt Obligations [Abstract] | ||||||||||||||||||||||||
Interest expense, debt | $ 100 | 200 | $ 400 | |||||||||||||||||||||
Senior Unsecured Notes | ||||||||||||||||||||||||
Collateralized Debt Obligations [Abstract] | ||||||||||||||||||||||||
Unamortized debt issuance costs | 9,084 | 9,084 | ||||||||||||||||||||||
Senior Unsecured Notes | Various Date | ||||||||||||||||||||||||
Collateralized Debt Obligations [Abstract] | ||||||||||||||||||||||||
Unamortized debt issuance costs | 9,100 | 9,100 | 11,200 | |||||||||||||||||||||
Borrowings from Federal Home Loan Bank (FHLB) [Abstract] | ||||||||||||||||||||||||
Loan refinance | $ 1,166,201 | $ 1,166,201 | $ 1,166,201 | |||||||||||||||||||||
Senior Unsecured Notes | Maximum | Various Date | ||||||||||||||||||||||||
Collateralized Debt Obligations [Abstract] | ||||||||||||||||||||||||
Interest rate | 5.875% | 5.875% | 5.875% | |||||||||||||||||||||
Senior Unsecured Notes | Minimum | Various Date | ||||||||||||||||||||||||
Collateralized Debt Obligations [Abstract] | ||||||||||||||||||||||||
Interest rate | 5.25% | 5.25% | 5.25% |
DEBT OBLIGATIONS, NET - Sched_2
DEBT OBLIGATIONS, NET - Schedule of Maturities (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Long-term Debt, Fiscal Year Maturity [Abstract] | |
2019 (last 3 months) | $ 1,039,597 |
2020 | 1,052,894 |
2021 | 876,649 |
2022 | 655,706 |
2023 | 559,422 |
Thereafter | 680,935 |
Subtotal | 4,865,203 |
Premiums included in mortgage loan financing | 5,342 |
Debt obligations | 4,860,687 |
Senior Unsecured Notes | |
Long-term Debt, Fiscal Year Maturity [Abstract] | |
Unamortized debt issuance costs | (9,084) |
CLO debt | |
Long-term Debt, Fiscal Year Maturity [Abstract] | |
Unamortized debt issuance costs | (394) |
Mortgage Loan Financing | |
Long-term Debt, Fiscal Year Maturity [Abstract] | |
Unamortized debt issuance costs | $ (380) |
Length of extension options | 1 year |
DERIVATIVE INSTRUMENTS - Schedu
DERIVATIVE INSTRUMENTS - Schedule of Derivatives Outstanding (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | ||
Derivative [Line Items] | |||
Notional | $ 276,471 | $ 578,971 | |
Fair value, asset | [1] | 22 | 0 |
Fair value, liability | [1] | 82 | 975 |
1 Month LIBOR | |||
Derivative [Line Items] | |||
Notional | 69,571 | 69,571 | |
Fair value, asset | 0 | 0 | |
Fair value, liability | $ 0 | $ 0 | |
Remaining maturity | 7 months 9 days | 1 year 4 months 6 days | |
5-year Swap | |||
Derivative [Line Items] | |||
Notional | $ 49,200 | $ 274,900 | |
Fair value, asset | 0 | 0 | |
Fair value, liability | $ 20 | $ 526 | |
Remaining maturity | 3 months | 3 months | |
10-year Swap | |||
Derivative [Line Items] | |||
Notional | $ 149,500 | $ 227,700 | |
Fair value, asset | 0 | 0 | |
Fair value, liability | $ 61 | $ 436 | |
Remaining maturity | 3 months | 3 months | |
5-year U.S. Treasury Note | |||
Derivative [Line Items] | |||
Notional | $ 2,200 | $ 6,800 | |
Fair value, asset | 0 | 0 | |
Fair value, liability | $ 1 | $ 13 | |
Remaining maturity | 3 months | 3 months | |
Futures | |||
Derivative [Line Items] | |||
Notional | $ 200,900 | $ 509,400 | |
Fair value, asset | 0 | 0 | |
Fair value, liability | 82 | $ 975 | |
S&P 500 Put Options | |||
Derivative [Line Items] | |||
Notional | 6,000 | ||
Fair value, asset | 22 | ||
Fair value, liability | $ 0 | ||
Remaining maturity | 3 months 18 days | ||
Credit Derivatives | |||
Derivative [Line Items] | |||
Notional | $ 6,000 | ||
Fair value, asset | 22 | ||
Fair value, liability | $ 0 | ||
[1] | Includes amounts relating to consolidated variable interest entities. See Note 10 . |
DERIVATIVE INSTRUMENTS - Sche_2
DERIVATIVE INSTRUMENTS - Schedule of Realized Gains (Losses) on Derivatives (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Derivative [Line Items] | ||||
Unrealized Gain/(Loss) | $ (621) | $ (984) | $ 889 | $ 1,356 |
Realized Gain/(Loss) | (8,844) | 8,099 | (36,845) | 27,800 |
Net Result from Derivative Transactions | (9,465) | 7,115 | (35,956) | 29,156 |
Futures | ||||
Derivative [Line Items] | ||||
Unrealized Gain/(Loss) | (618) | (940) | 892 | (52) |
Realized Gain/(Loss) | (8,868) | 8,099 | (36,761) | 28,985 |
Net Result from Derivative Transactions | (9,486) | 7,159 | (35,869) | 28,933 |
Swaps | ||||
Derivative [Line Items] | ||||
Unrealized Gain/(Loss) | 0 | 1,403 | ||
Realized Gain/(Loss) | 0 | (848) | ||
Net Result from Derivative Transactions | 0 | 555 | ||
Credit Derivatives | ||||
Derivative [Line Items] | ||||
Unrealized Gain/(Loss) | (3) | (44) | (3) | 5 |
Realized Gain/(Loss) | 24 | 0 | (84) | (337) |
Net Result from Derivative Transactions | $ 21 | $ (44) | $ (87) | $ (332) |
DERIVATIVE INSTRUMENTS - Additi
DERIVATIVE INSTRUMENTS - Additional Information (Details) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Cash margins held as collateral for derivatives by counterparties | $ 4,200,000 | $ 5,000,000 |
Cash collateral held by counterparty | $ 0 | $ 0 |
OFFSETTING ASSETS AND LIABILI_3
OFFSETTING ASSETS AND LIABILITIES - Offsetting Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | |
Offsetting of derivative assets | |||
Gross amounts of recognized assets | $ 22 | ||
Gross amounts offset in the balance sheet | 0 | ||
Net amounts of assets presented in the balance sheet | [1] | 22 | $ 0 |
Gross amounts not offset in the balance sheet | |||
Financial instruments | 0 | ||
Cash collateral received/(posted) | 0 | ||
Net amount | $ 22 | ||
[1] | Includes amounts relating to consolidated variable interest entities. See Note 10 . |
OFFSETTING ASSETS AND LIABILI_4
OFFSETTING ASSETS AND LIABILITIES - Offsetting Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | |
Derivatives | |||
Gross amounts of recognized liabilities | $ 82 | $ 975 | |
Gross amounts offset in the balance sheet | 0 | 0 | |
Net amounts of liabilities presented in the balance sheet | [1] | 82 | 975 |
Gross amounts not offset in the balance sheet | |||
Financial instruments collateral | 0 | 0 | |
Cash collateral posted/(received) | 82 | 975 | |
Net amount | 0 | 0 | |
Repurchase agreements | |||
Gross amounts of recognized liabilities | 1,786,048 | 663,685 | |
Gross amounts offset in the balance sheet | 0 | 0 | |
Net amounts of liabilities presented in the balance sheet | 1,786,048 | 663,685 | |
Gross amounts not offset in the balance sheet | |||
Financial instruments collateral | 1,786,048 | 663,685 | |
Cash collateral posted/(received) | 0 | 0 | |
Net amount | 0 | 0 | |
Total | |||
Gross amounts of recognized liabilities | 1,786,130 | 664,660 | |
Gross amounts offset in the balance sheet | 0 | 0 | |
Net amounts of liabilities presented in the balance sheet | 1,786,130 | 664,660 | |
Gross amounts not offset in the balance sheet | |||
Financial instruments collateral | 1,786,048 | 663,685 | |
Cash collateral posted/(received) | 82 | 975 | |
Net amount | $ 0 | $ 0 | |
[1] | Includes amounts relating to consolidated variable interest entities. See Note 10 . |
CONSOLIDATED VARIABLE INTERES_3
CONSOLIDATED VARIABLE INTEREST ENTITIES (Details) - CLO - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Variable Interest Entity [Line Items] | ||
Total assets | $ 275,512 | $ 795,813 |
Total liabilities | 118,068 | 608,913 |
Net equity in VIEs (eliminated in consolidation) | 157,444 | 186,900 |
Total equity | 157,444 | 186,900 |
Total liabilities and equity | 275,512 | 795,813 |
Total mortgage loan receivables held for investment, net, at amortized cost | ||
Variable Interest Entity [Line Items] | ||
Total assets | 274,149 | 710,502 |
Accrued interest receivable | ||
Variable Interest Entity [Line Items] | ||
Total assets | 1,363 | 3,921 |
Other assets | ||
Variable Interest Entity [Line Items] | ||
Total assets | 0 | 81,390 |
Senior and unsecured debt obligations | ||
Variable Interest Entity [Line Items] | ||
Total liabilities | 117,760 | 607,440 |
Accrued expenses | ||
Variable Interest Entity [Line Items] | ||
Total liabilities | 306 | 1,471 |
Other liabilities | ||
Variable Interest Entity [Line Items] | ||
Total liabilities | $ 2 | $ 2 |
EQUITY STRUCTURE AND ACCOUNTS -
EQUITY STRUCTURE AND ACCOUNTS - Additional Information (Details) $ / shares in Units, $ in Thousands | 9 Months Ended | ||||
Sep. 30, 2019USD ($)VoteClass_of_Stock$ / sharesshares | Sep. 30, 2018USD ($)shares | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Oct. 30, 2014USD ($) | |
Class of Stock [Line Items] | |||||
Number of classes of common stock | Class_of_Stock | 2 | ||||
2014 Share Repurchase Authorization Program | |||||
Class of Stock [Line Items] | |||||
Remaining amount available for repurchase | $ | $ 41,100 | ||||
Percentage of aggregate common stock outstanding under Repurchase Program | 2.20% | ||||
Closing price (in dollars per share) | $ / shares | $ 17.27 | ||||
Series REIT LP Units | |||||
Class of Stock [Line Items] | |||||
Exchange of noncontrolling interest for common stock, units exchanged (in shares) | 1,140,000 | 4,549,832 | |||
Series TRS LP Units | |||||
Class of Stock [Line Items] | |||||
Exchange of noncontrolling interest for common stock, units exchanged (in shares) | 1,140,000 | 4,549,832 | |||
Class A Common Stock | |||||
Class of Stock [Line Items] | |||||
Number of votes per share | Vote | 1 | ||||
Exchange of noncontrolling interest for common stock, units exchanged (in shares) | 1,140,000 | ||||
Exchange of noncontrolling interest for common stock (in shares) | 4,549,832 | ||||
Class A Common Stock | 2014 Share Repurchase Authorization Program | |||||
Class of Stock [Line Items] | |||||
Additional authorizations | $ | $ 0 | $ 50,000 | |||
Purchase of treasury stock (in shares) | 40,065 | 0 | |||
Remaining amount available for repurchase | $ | $ 41,132 | $ 41,769 | $ 41,769 | $ 41,769 | |
Class B Common Stock | |||||
Class of Stock [Line Items] | |||||
Number of votes per share | Vote | 1 | ||||
Exchange of noncontrolling interest for common stock, units exchanged (in shares) | (1,140,000) | ||||
Exchange of noncontrolling interest for common stock (in shares) | (4,549,832) |
EQUITY STRUCTURE AND ACCOUNTS_2
EQUITY STRUCTURE AND ACCOUNTS - Schedule of repurchase of treasury stock activity (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Treasury Stock [Roll Forward] | ||
Repurchases paid | $ (637) | |
2014 Share Repurchase Authorization Program | ||
Treasury Stock [Roll Forward] | ||
Remaining amount available for repurchase | $ 41,100 | |
2014 Share Repurchase Authorization Program | Class A Common Stock | ||
Class of Stock [Line Items] | ||
Purchase of treasury stock (in shares) | 40,065 | 0 |
Treasury Stock [Roll Forward] | ||
Remaining amount available for repurchase | $ 41,769 | $ 41,769 |
Additional authorizations | 0 | |
Repurchases paid | (637) | 0 |
Repurchases unsettled | 0 | 0 |
Remaining amount available for repurchase | $ 41,132 | $ 41,769 |
EQUITY STRUCTURE AND ACCOUNTS_3
EQUITY STRUCTURE AND ACCOUNTS - Dividends Declared (Details) - $ / shares | Aug. 22, 2019 | May 30, 2019 | Feb. 27, 2019 | Sep. 05, 2018 | May 30, 2018 | Feb. 27, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 |
Class A Common Stock | ||||||||||
Class of Stock [Line Items] | ||||||||||
Dividends per share of Class A common stock (in dollars per share) | $ 0.340 | $ 0.340 | $ 0.340 | $ 0.325 | $ 0.325 | $ 0.315 | $ 0.340 | $ 0.325 | $ 1.020 | $ 0.965 |
EQUITY STRUCTURE AND ACCOUNTS_4
EQUITY STRUCTURE AND ACCOUNTS - Changes in Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |||
AOCI Attributable to Parent [Roll Forward] | ||||||
Beginning Balance | $ 1,648,074 | $ 1,512,462 | $ 1,643,635 | [1] | $ 1,488,146 | |
Other comprehensive income (loss) | (2,009) | 1,445 | 16,775 | (9,658) | ||
Exchange of noncontrolling interest for common stock | 0 | 0 | ||||
Rebalancing of ownership percentage between Company and Operating Partnership | 0 | 0 | ||||
Ending Balance | 1,639,250 | [1] | 1,553,643 | 1,639,250 | [1] | 1,553,643 |
Accumulated Other Comprehensive Income (Loss) | ||||||
AOCI Attributable to Parent [Roll Forward] | ||||||
Beginning Balance | 12,171 | (9,855) | (4,649) | (212) | ||
Other comprehensive income (loss) | (1,804) | 1,276 | 14,935 | (8,230) | ||
Exchange of noncontrolling interest for common stock | 64 | (167) | ||||
Rebalancing of ownership percentage between Company and Operating Partnership | 17 | 27 | ||||
Ending Balance | 10,367 | (8,582) | 10,367 | (8,582) | ||
Accumulated Other Comprehensive Income (Loss) of Noncontrolling Interests | ||||||
AOCI Attributable to Parent [Roll Forward] | ||||||
Beginning Balance | (588) | 116 | ||||
Other comprehensive income (loss) | 1,840 | (1,428) | ||||
Exchange of noncontrolling interest for common stock | (64) | 167 | ||||
Rebalancing of ownership percentage between Company and Operating Partnership | (17) | (27) | ||||
Ending Balance | 1,171 | (1,172) | 1,171 | (1,172) | ||
Total Accumulated Other Comprehensive Income (Loss) | ||||||
AOCI Attributable to Parent [Roll Forward] | ||||||
Beginning Balance | (5,237) | (96) | ||||
Ending Balance | $ 11,538 | $ (9,754) | $ 11,538 | $ (9,754) | ||
[1] | Includes amounts relating to consolidated variable interest entities. See Note 10 . |
NONCONTROLLING INTERESTS (Detai
NONCONTROLLING INTERESTS (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2019USD ($)propertyJoint_Venture | |
Consolidated Joint Venture | |
Noncontrolling Interest [Line Items] | |
Number of consolidated joint ventures | Joint_Venture | 7 |
Number of real estate properties | 40 |
Consolidated Joint Venture | Diversified | |
Noncontrolling Interest [Line Items] | |
Number of real estate properties | 20 |
Consolidated Joint Venture | Industrial Properties | |
Noncontrolling Interest [Line Items] | |
Number of real estate properties | 1 |
Consolidated Joint Venture | Condominium | |
Noncontrolling Interest [Line Items] | |
Number of real estate properties | 1 |
Consolidated Joint Venture | Apartment Building | |
Noncontrolling Interest [Line Items] | |
Number of real estate properties | 1 |
Consolidated Joint Venture | Minimum | |
Noncontrolling Interest [Line Items] | |
Noncontrolling interest ownership | 1.20% |
Consolidated Joint Venture | Maximum | |
Noncontrolling Interest [Line Items] | |
Noncontrolling interest ownership | 29.40% |
Operating Partnership | |
Noncontrolling Interest [Line Items] | |
Decrease in noncontrolling interest in Operating Partnership | $ | $ (0.1) |
EARNINGS PER SHARE - Net Income
EARNINGS PER SHARE - Net Income and Weighted Average Shares Outstanding (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Weighted average shares outstanding: | ||||
Basic (in shares) | 106,004,152 | 96,935,986 | 105,264,752 | 96,317,513 |
Diluted (in shares) | 106,603,713 | 110,650,253 | 106,232,581 | 110,482,991 |
Class A Common Stock | ||||
Earnings Per Share | ||||
Basic Net income (loss) available for Class A common shareholders | $ 27,576 | $ 66,630 | $ 81,996 | $ 155,911 |
Diluted Net income (loss) available for Class A common shareholders | $ 27,576 | $ 74,038 | $ 81,996 | $ 177,875 |
Weighted average shares outstanding: | ||||
Basic (in shares) | 106,004,152 | 96,935,986 | 105,264,752 | 96,317,513 |
Diluted (in shares) | 106,603,713 | 110,650,253 | 106,232,581 | 110,482,991 |
EARNINGS PER SHARE - Schedule o
EARNINGS PER SHARE - Schedule of Calculation of Basic and Diluted EPS (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Denominator: | ||||
Weighted average number of shares of Class A common stock outstanding (in shares) | 106,004,152 | 96,935,986 | 105,264,752 | 96,317,513 |
Basic net income (loss) per share of Class A common stock (in dollars per share) | $ 0.26 | $ 0.69 | $ 0.78 | $ 1.62 |
Denominator: | ||||
Weighted average number of shares of Class A common stock outstanding (in shares) | 106,004,152 | 96,935,986 | 105,264,752 | 96,317,513 |
Diluted weighted average number of shares of Class A common stock outstanding (in shares) | 106,603,713 | 110,650,253 | 106,232,581 | 110,482,991 |
Diluted net income (loss) per share of Class A common stock (in dollars per share) | $ 0.26 | $ 0.67 | $ 0.77 | $ 1.61 |
Class A Common Stock | ||||
Numerator: | ||||
Net income (loss) attributable to Class A common shareholders | $ 27,576 | $ 66,630 | $ 81,996 | $ 155,911 |
Denominator: | ||||
Weighted average number of shares of Class A common stock outstanding (in shares) | 106,004,152 | 96,935,986 | 105,264,752 | 96,317,513 |
Basic net income (loss) per share of Class A common stock (in dollars per share) | $ 0.26 | $ 0.69 | $ 0.78 | $ 1.62 |
Numerator: | ||||
Net income (loss) attributable to Class A common shareholders | $ 27,576 | $ 66,630 | $ 81,996 | $ 155,911 |
Amounts attributable to operating partnership’s share of Ladder Capital Corp net income (loss) | 0 | 8,991 | 0 | 22,786 |
Additional corporate tax (expense) benefit | 0 | (1,583) | 0 | (822) |
Diluted net income (loss) attributable to Class A common shareholders | $ 27,576 | $ 74,038 | $ 81,996 | $ 177,875 |
Denominator: | ||||
Weighted average number of shares of Class A common stock outstanding (in shares) | 106,004,152 | 96,935,986 | 105,264,752 | 96,317,513 |
Shares issuable relating to converted Class B common shareholders (in shares) | 0 | 13,202,202 | 0 | 13,800,597 |
Incremental shares of unvested Class A restricted stock (in shares) | 599,561 | 512,065 | 967,829 | 364,881 |
Diluted weighted average number of shares of Class A common stock outstanding (in shares) | 106,603,713 | 110,650,253 | 106,232,581 | 110,482,991 |
Diluted net income (loss) per share of Class A common stock (in dollars per share) | $ 0.26 | $ 0.67 | $ 0.77 | $ 1.61 |
STOCK BASED AND OTHER COMPENS_3
STOCK BASED AND OTHER COMPENSATION PLANS - Stock Based Compensation Plans Summary (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Recognized equity based compensation expense | $ 3,575 | $ 2,162 | $ 18,336 | $ 6,667 |
Ladder Capital Corp Deferred Compensation Plan | 0 | 601 | 0 | 1,519 |
Bonus Expense | 6,533 | 9,210 | 21,035 | 26,772 |
Other Employee/Director Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Recognized equity based compensation expense | 6 | 13 | 23 | 45 |
Phantom Equity Investment Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Recognized equity based compensation expense | 343 | 0 | 1,047 | 0 |
Annual Incentive Awards Granted in 2015 with Respect to 2014 Performance | 2014 Omnibus Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Recognized equity based compensation expense | 0 | 0 | 0 | 172 |
Annual Incentive Awards Granted in 2016 with Respect to 2015 Performance | 2014 Omnibus Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Recognized equity based compensation expense | 0 | 323 | 131 | 971 |
Annual Incentive Awards Granted in 2017 With Respect to 2016 Performance | 2014 Omnibus Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Recognized equity based compensation expense | 280 | 524 | 955 | 1,655 |
Other 2017 Restricted Stock Awards | 2014 Omnibus Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Recognized equity based compensation expense | 25 | 76 | 102 | 257 |
Annual Incentive Awards Granted in 2017 With Respect to 2017 Performance | 2014 Omnibus Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Recognized equity based compensation expense | 596 | 1,122 | 1,961 | 3,325 |
2018 Restricted Stock Awards | 2014 Omnibus Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Recognized equity based compensation expense | 0 | 95 | 32 | 230 |
Other 2018 Restricted Stock Awards | 2014 Omnibus Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Recognized equity based compensation expense | 11 | 9 | 31 | 12 |
Annual Incentive Awards Granted in 2019 with Respect to 2018 Performance | 2014 Omnibus Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Recognized equity based compensation expense | 2,509 | 0 | 14,804 | 0 |
Other 2019 Restricted Stock Awards | 2014 Omnibus Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Recognized equity based compensation expense | $ 148 | $ 0 | $ 297 | $ 0 |
STOCK BASED AND OTHER COMPENS_4
STOCK BASED AND OTHER COMPENSATION PLANS - Summary of Grants (Details) - $ / shares | Jul. 19, 2018 | Apr. 23, 2018 | Feb. 18, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 |
Restricted Stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of Shares/Options (in shares) | 1,580,807 | 33,656 | |||||
Stock Options | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock Options (in shares) | 0 | 0 | 12,073 | 0 | |||
Class A Common Stock | Restricted Stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of Shares/Options (in shares) | 4,720 | 3,566 | 25,370 | 23,443 | 4,720 | 1,569,694 | 33,656 |
Weighted Average Fair Value Per Share (in dollars per share) | $ 16.58 | $ 15.89 | $ 17.54 | $ 14.86 | |||
Class A Common Stock | Dividend Declared | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of Shares/Options (in shares) | 0 | 0 | 11,113 | 0 | |||
Weighted Average Fair Value Per Share (in dollars per share) | $ 0 | $ 0 | $ 16.61 | $ 0 |
STOCK BASED AND OTHER COMPENS_5
STOCK BASED AND OTHER COMPENSATION PLANS - Nonvested Shares Outstanding (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Restricted Stock | ||||
Number of Shares Nonvested Other than Options [Roll Forward] | ||||
Nonvested/Outstanding (in shares) | 1,118,194 | 1,252,365 | ||
Granted (in shares) | 1,580,807 | 33,656 | ||
Vested (in shares) | (1,122,107) | (138,216) | ||
Forfeited (in shares) | (8,702) | (26,061) | ||
Nonvested/Outstanding (in shares) | 1,568,192 | 1,121,744 | 1,568,192 | 1,121,744 |
Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares [Roll Forward] | ||||
Nonvested/Outstanding (in shares) | 982,135 | 982,135 | ||
Granted (in shares) | 0 | 0 | 12,073 | 0 |
Exercised (in shares) | 0 | 0 | ||
Forfeited (in shares) | 0 | 0 | ||
Expired (in shares) | 0 | 0 | ||
Nonvested/Outstanding (in shares) | 994,208 | 982,135 | 994,208 | 982,135 |
Exercisable (in shares) | 994,208 | 929,701 | 994,208 | 929,701 |
STOCK BASED AND OTHER COMPENS_6
STOCK BASED AND OTHER COMPENSATION PLANS - Additional Information (Details) $ / shares in Millions | Jul. 01, 2019USD ($)shares | Jun. 04, 2019USD ($)installmentshares | Feb. 18, 2019 | Feb. 18, 2019 | Feb. 18, 2019$ / shares | Feb. 18, 2019USD ($) | Feb. 18, 2019shares | Feb. 18, 2019installment | Jan. 24, 2019USD ($)shares | Jul. 19, 2018USD ($)installmentshares | Apr. 23, 2018USD ($)installmentanniversaryshares | Feb. 18, 2018USD ($)shares | Dec. 21, 2017USD ($)installmentshares | Jun. 22, 2017USD ($)installmentanniversaryshares | Jun. 19, 2017USD ($)shares | Mar. 03, 2017USD ($)installmentanniversaryshares | Feb. 18, 2017USD ($)installmentanniversaryshares | Jan. 24, 2017USD ($)shares | Mar. 17, 2015 | Sep. 30, 2019USD ($)shares | Sep. 30, 2018USD ($)shares | Sep. 30, 2019USD ($)shares | Sep. 30, 2018USD ($)shares | Dec. 31, 2018USD ($)shares | Jan. 05, 2018USD ($) | Dec. 29, 2017USD ($) | Dec. 19, 2017USD ($) |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||||||||
Unrecognized compensation cost | $ | $ 14,800,000 | $ 8,000,000 | $ 14,800,000 | $ 8,000,000 | |||||||||||||||||||||||
Period of recognition for unrecognized compensation costs | 34 months | 34 months | |||||||||||||||||||||||||
Remaining vesting period | 25 months 24 days | 21 months 6 days | |||||||||||||||||||||||||
Aggregate value of awards granted | $ | $ 11,700,000 | ||||||||||||||||||||||||||
Accrued bonuses | $ | $ 61,400,000 | $ 49,300,000 | |||||||||||||||||||||||||
Equity based compensation | $ | $ 15,500,000 | $ 26,600,000 | |||||||||||||||||||||||||
Bonuses paid | $ | $ 16,800,000 | $ 17,100,000 | |||||||||||||||||||||||||
Bonus expense | $ | $ 3,575,000 | 2,162,000 | $ 18,336,000 | $ 6,667,000 | |||||||||||||||||||||||
Restricted Stock | |||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||||||||
Number of restricted shares granted (in shares) | 1,580,807 | 33,656 | |||||||||||||||||||||||||
2014 Omnibus Incentive Plan | Management Grantees | Restricted Stock | |||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||||||||
Period of recognition for unrecognized compensation costs | 3 years | 3 years | 3 years | ||||||||||||||||||||||||
2014 Omnibus Incentive Plan | Management Grantees | Restricted Stock | Performance-based vesting | |||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||||||||
Minimum performance target percentage | 8.00% | ||||||||||||||||||||||||||
Performance period | 3 years | ||||||||||||||||||||||||||
2014 Omnibus Incentive Plan | Management Grantees | Restricted Stock | Time Based Vesting on Three Year Anniversary | |||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||||||||
Number of installments in which awards are vested | 3 | 3 | 3 | 3 | |||||||||||||||||||||||
Number of anniversaries in which awards are vested | anniversary | 3 | ||||||||||||||||||||||||||
2014 Omnibus Incentive Plan | Non-Management Grantee | Restricted Stock | Time Based Vesting on Three Year Anniversary | |||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||||||||
Number of installments in which awards are vested | installment | 3 | ||||||||||||||||||||||||||
2014 Omnibus Incentive Plan | Michael Mazzei | Restricted Stock | |||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||||||||
Period of recognition for unrecognized compensation costs | 3 years | ||||||||||||||||||||||||||
2014 Omnibus Incentive Plan | Harris | Restricted Stock | Time-based vesting | |||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||||||||
Vesting period | 3 years | ||||||||||||||||||||||||||
2014 Deferred Compensation Plan | |||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||||||||
Days following the end of the participant’s employment | 60 days | ||||||||||||||||||||||||||
Units outstanding (in shares) | 260,200 | 260,200 | 380,662 | ||||||||||||||||||||||||
Units unvested (in shares) | 138,583 | 138,583 | 130,389 | ||||||||||||||||||||||||
Total employee's contribution, net of forfeitures and payouts related to terminations | $ | $ 4,600,000 | $ 4,600,000 | |||||||||||||||||||||||||
Phantom Units 2 | |||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||||||||
Total employee's contribution, net of forfeitures and payouts related to terminations | $ | $ 5,900,000 | ||||||||||||||||||||||||||
Bonus Payments | |||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||||||||
Bonus expense | $ | $ 6,500,000 | $ 9,200,000 | $ 21,000,000 | $ 26,800,000 | |||||||||||||||||||||||
Class A Common Stock | Restricted Stock | |||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||||||||
Period of recognition for unrecognized compensation costs | 3 years | ||||||||||||||||||||||||||
Number of restricted shares granted (in shares) | 4,720 | 3,566 | 25,370 | 23,443 | 4,720 | 1,569,694 | 33,656 | ||||||||||||||||||||
Number of installments in which awards are vested | installment | 3 | 3 | 3 | ||||||||||||||||||||||||
Number of anniversaries in which awards are vested | 3 | 3 | 3 | ||||||||||||||||||||||||
Grant date fair value | $ | $ 100,000 | $ 100,000 | $ 400,000 | ||||||||||||||||||||||||
Class A Common Stock | Management Grantees | Restricted Stock | |||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||||||||
Number of restricted shares granted (in shares) | 4,568 | 682 | |||||||||||||||||||||||||
Grant date fair value | $ | $ 11,328 | ||||||||||||||||||||||||||
Class A Common Stock | Board of Directors | Restricted Stock | |||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||||||||
Number of restricted shares granted (in shares) | 25,626 | ||||||||||||||||||||||||||
Number of anniversaries in which awards are vested | 3 | ||||||||||||||||||||||||||
Vesting period | 1 year | 1 year | |||||||||||||||||||||||||
Grant date fair value | $ | $ 100,000 | $ 400,000 | |||||||||||||||||||||||||
Class A Common Stock | Non-Management Grantee | Restricted Stock | |||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||||||||
Number of restricted shares granted (in shares) | 24,125 | 849,087 | |||||||||||||||||||||||||
Vesting percentage | 50.00% | 50.00% | |||||||||||||||||||||||||
Number of installments in which awards are vested | 3 | 3 | |||||||||||||||||||||||||
Aggregate value of restricted stock awards (in dollars per share) | $ / shares | $ 14.9 | ||||||||||||||||||||||||||
Grant date fair value | $ | $ 400,000 | ||||||||||||||||||||||||||
Class A Common Stock | 2014 Omnibus Incentive Plan | Restricted Stock | |||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||||||||
Aggregate value of awards granted | $ | $ 100,000 | ||||||||||||||||||||||||||
Number of restricted shares granted (in shares) | 5,130 | ||||||||||||||||||||||||||
Number of installments in which awards are vested | installment | 3 | ||||||||||||||||||||||||||
Number of anniversaries in which awards are vested | anniversary | 3 | ||||||||||||||||||||||||||
Vesting period | 3 years | ||||||||||||||||||||||||||
Class A Common Stock | 2014 Omnibus Incentive Plan | Restricted Stock | Period 2 | |||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||||||||
Expected to vest (in shares) | 1,775 | ||||||||||||||||||||||||||
Class A Common Stock | 2014 Omnibus Incentive Plan | Restricted Stock | Period 3 | |||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||||||||
Expected to vest (in shares) | 1,775 | ||||||||||||||||||||||||||
Class A Common Stock | 2014 Omnibus Incentive Plan | Restricted Stock | Period 4 | |||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||||||||
Expected to vest (in shares) | 1,775 | ||||||||||||||||||||||||||
Class A Common Stock | 2014 Omnibus Incentive Plan | Restricted Stock | Period 5 | |||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||||||||
Expected to vest (in shares) | 1,775 | ||||||||||||||||||||||||||
Class A Common Stock | 2014 Omnibus Incentive Plan | Restricted Stock | Period 6 | |||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||||||||
Expected to vest (in shares) | 1,775 | ||||||||||||||||||||||||||
Class A Common Stock | 2014 Omnibus Incentive Plan | Restricted Stock | Period 7 | |||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||||||||
Expected to vest (in shares) | 1,775 | ||||||||||||||||||||||||||
Class A Common Stock | 2014 Omnibus Incentive Plan | Management Grantees | Restricted Stock | |||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||||||||
Aggregate value of awards granted | $ | $ 10,500,000 | $ 10,200,000 | $ 30,455 | ||||||||||||||||||||||||
Number of restricted shares granted (in shares) | 666,288 | 768,205 | 736,461 | 2,191 | |||||||||||||||||||||||
Class A Common Stock | 2014 Omnibus Incentive Plan | Management Grantees | Restricted Stock | Time-based vesting | |||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||||||||
Vesting percentage | 50.00% | 50.00% | |||||||||||||||||||||||||
Class A Common Stock | 2014 Omnibus Incentive Plan | Management Grantees | Restricted Stock | Performance-based vesting | |||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||||||||
Vesting percentage | 50.00% | 50.00% | 50.00% | ||||||||||||||||||||||||
Number of installments in which awards are vested | installment | 3 | 3 | |||||||||||||||||||||||||
Number of anniversaries in which awards are vested | anniversary | 3 | ||||||||||||||||||||||||||
Class A Common Stock | 2014 Omnibus Incentive Plan | Management Grantees | Restricted Stock With Dividend Equivalent Rights | |||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||||||||
Aggregate value of awards granted | $ | $ 48,475 | ||||||||||||||||||||||||||
Number of restricted shares granted (in shares) | 3,500 | ||||||||||||||||||||||||||
Cash dividends received | $ | $ 1,000,000 | ||||||||||||||||||||||||||
Class A Common Stock | 2014 Omnibus Incentive Plan | New Employee | Restricted Stock | |||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||||||||
Aggregate value of awards granted | $ | $ 400,000 | ||||||||||||||||||||||||||
Number of restricted shares granted (in shares) | 28,881 | ||||||||||||||||||||||||||
Number of installments in which awards are vested | installment | 2 | ||||||||||||||||||||||||||
Number of anniversaries in which awards are vested | installment | 2 | ||||||||||||||||||||||||||
Class A Common Stock | 2014 Omnibus Incentive Plan | Board of Directors | Restricted Stock | |||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||||||||
Aggregate value of awards granted | $ | $ 200,000 | ||||||||||||||||||||||||||
Number of restricted shares granted (in shares) | 16,245 | ||||||||||||||||||||||||||
Vesting period | 1 year | ||||||||||||||||||||||||||
Class A Common Stock | 2014 Omnibus Incentive Plan | Non-Management Grantee | Restricted Stock | |||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||||||||
Aggregate value of awards granted | $ | $ 5,000,000 | $ 300,000 | $ 600,000 | ||||||||||||||||||||||||
Number of restricted shares granted (in shares) | 369,328 | 21,307 | 40,000 | ||||||||||||||||||||||||
Class A Common Stock | 2014 Omnibus Incentive Plan | Non-Management Grantee | Restricted Stock | Time-based vesting | |||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||||||||
Vesting percentage | 50.00% | ||||||||||||||||||||||||||
Class A Common Stock | 2014 Omnibus Incentive Plan | Non-Management Grantee | Restricted Stock | 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 | installment | 3 | ||||||||||||||||||||||||||
Class A Common Stock | 2014 Omnibus Incentive Plan | Non-Management Grantee | Restricted Stock | Period 1 | |||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||||||||
Expected to vest (in shares) | 1,775 | ||||||||||||||||||||||||||
Class A Common Stock | 2014 Omnibus Incentive Plan | Non-Management Grantee | Restricted Stock | Period 8 | |||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||||||||
Expected to vest (in shares) | 1,780 | ||||||||||||||||||||||||||
Class A Common Stock | 2014 Omnibus Incentive Plan | Michael Mazzei | Restricted Stock | |||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||||||||
Aggregate value of awards granted | $ | $ 100,000 | ||||||||||||||||||||||||||
Number of restricted shares granted (in shares) | 5,346 | ||||||||||||||||||||||||||
Number of installments in which awards are vested | installment | 3 | ||||||||||||||||||||||||||
Number of anniversaries in which awards are vested | anniversary | 3 | ||||||||||||||||||||||||||
Class A Common Stock | 2014 Deferred Compensation Plan | |||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||||||||
Mandatory contribution period | 3 years |
FAIR VALUE OF FINANCIAL INSTR_3
FAIR VALUE OF FINANCIAL INSTRUMENTS - Estimated Fair Values of Financial Instruments (Details) $ in Thousands | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2019USD ($) | Sep. 30, 2018 | Dec. 31, 2018USD ($) | ||
Assets: | ||||
Fair Value | $ 3,487,684 | $ 3,564,681 | ||
Provision for loan losses | [1] | (18,500) | (17,900) | |
Liabilities: | ||||
Fair Value | $ 4,939,146 | $ 4,401,295 | ||
Total mortgage loan receivables held for investment, net, at amortized cost | ||||
Liabilities: | ||||
Period of short interest rate reset risk | 30 days | 30 days | ||
CLO debt | ||||
Liabilities: | ||||
Period of short interest rate reset risk | 30 days | 30 days | ||
Recurring | ||||
Assets: | ||||
Fair Value | $ 1,899,012 | $ 1,397,918 | ||
Recurring | CMBS | Internal Model Third Party Inputs Valuation Technique | ||||
Assets: | ||||
Outstanding Face Amount | 1,779,458 | 1,258,819 | ||
Amortized Cost Basis/Purchase Price | 1,780,233 | 1,257,801 | ||
Fair Value | $ 1,788,712 | $ 1,252,640 | ||
Liabilities: | ||||
Financial instruments, measurement input | 0.0314 | 0.0314 | ||
Weighted average remaining maturity/duration | 2 years 4 months 17 days | 2 years 3 months 29 days | ||
Recurring | CMBS interest-only | Internal Model Third Party Inputs Valuation Technique | ||||
Assets: | ||||
Outstanding Face Amount | $ 2,139,357 | $ 2,373,936 | ||
Amortized Cost Basis/Purchase Price | 39,961 | 55,534 | ||
Fair Value | $ 41,440 | $ 55,691 | ||
Liabilities: | ||||
Financial instruments, measurement input | 0.0365 | 0.0280 | ||
Weighted average remaining maturity/duration | 2 years 7 months 9 days | 2 years 8 months 8 days | ||
Recurring | GNMA interest-only | Internal Model Third Party Inputs Valuation Technique | ||||
Assets: | ||||
Outstanding Face Amount | $ 113,096 | $ 135,932 | ||
Amortized Cost Basis/Purchase Price | 2,202 | 2,862 | ||
Fair Value | $ 2,026 | $ 2,648 | ||
Liabilities: | ||||
Financial instruments, measurement input | 0.0965 | 0.0630 | ||
Weighted average remaining maturity/duration | 2 years 8 months 23 days | 4 years 1 month 9 days | ||
Recurring | Agency securities | Internal Model Third Party Inputs Valuation Technique | ||||
Assets: | ||||
Outstanding Face Amount | $ 641 | $ 668 | ||
Amortized Cost Basis/Purchase Price | 652 | 682 | ||
Fair Value | $ 654 | $ 662 | ||
Liabilities: | ||||
Financial instruments, measurement input | 0.0174 | 0.0183 | ||
Weighted average remaining maturity/duration | 1 year 11 months 19 days | 2 years 4 months 9 days | ||
Recurring | GNMA permanent securities | Internal Model Third Party Inputs Valuation Technique | ||||
Assets: | ||||
Outstanding Face Amount | $ 31,760 | $ 32,633 | ||
Amortized Cost Basis/Purchase Price | 31,984 | 32,889 | ||
Fair Value | $ 32,795 | $ 33,064 | ||
Liabilities: | ||||
Financial instruments, measurement input | 0.0327 | 0.0376 | ||
Weighted average remaining maturity/duration | 4 years 6 months 18 days | 5 years 10 days | ||
Recurring | Corporate bonds | Internal Model Third Party Inputs Valuation Technique | ||||
Assets: | ||||
Outstanding Face Amount | $ 32,088 | $ 55,305 | ||
Amortized Cost Basis/Purchase Price | 31,604 | 54,257 | ||
Fair Value | $ 32,372 | $ 53,871 | ||
Liabilities: | ||||
Financial instruments, measurement input | 0.0481 | 0.0504 | ||
Weighted average remaining maturity/duration | 1 year 3 months 21 days | 2 years 6 months 3 days | ||
Recurring | Equity securities | Internal Model Third Party Inputs Valuation Technique | ||||
Assets: | ||||
Amortized Cost Basis/Purchase Price | $ 13,720 | $ 13,154 | ||
Fair Value | 13,457 | 11,550 | ||
Recurring | Total mortgage loan receivables held for investment, net, at amortized cost | Discounted Cash Flow | ||||
Assets: | ||||
Outstanding Face Amount | 3,249,711 | 3,340,381 | ||
Amortized Cost Basis/Purchase Price | 3,231,443 | 3,318,390 | ||
Fair Value | $ 3,249,383 | $ 3,324,588 | ||
Liabilities: | ||||
Financial instruments, measurement input | 0.0729 | 0.0784 | ||
Weighted average remaining maturity/duration | 1 year 4 months 13 days | 1 year 3 months 25 days | ||
Recurring | Provisions For Loan Losses | ||||
Assets: | ||||
Provision for loan losses | $ (18,500) | $ (17,900) | ||
Recurring | First mortgage loans | Internal Model Third Party Inputs Valuation Technique | ||||
Assets: | ||||
Outstanding Face Amount | 173,957 | 181,905 | ||
Amortized Cost Basis/Purchase Price | 174,214 | 182,439 | ||
Fair Value | $ 182,716 | $ 187,870 | ||
Liabilities: | ||||
Financial instruments, measurement input | 0.0459 | 0.0546 | ||
Weighted average remaining maturity/duration | 9 years 8 months 4 days | 9 years 9 months | ||
Recurring | FHLB stock | FHLB stock | ||||
Assets: | ||||
Outstanding Face Amount | $ 61,619 | $ 57,915 | ||
Amortized Cost Basis/Purchase Price | 61,619 | 57,915 | ||
Fair Value | $ 61,619 | $ 57,915 | ||
Liabilities: | ||||
Financial instruments, measurement input | 0.0550 | 0.0450 | ||
Recurring | Nonhedge derivatives | Counterparty Quotations Valuation Technique | ||||
Assets: | ||||
Nonhedge derivative assets | $ 6,000 | $ 0 | ||
Fair Value | $ 22 | $ 0 | ||
Liabilities: | ||||
Weighted average remaining maturity/duration | 9 days | 0 years | ||
Recurring | Repurchase agreements - short-term | Discounted Cash Flow | ||||
Liabilities: | ||||
Outstanding Face Amount | $ 1,486,049 | $ 436,957 | ||
Amortized Cost Basis/Purchase Price | 1,486,049 | 436,957 | ||
Fair Value | $ 1,486,049 | $ 436,957 | ||
Financial instruments, measurement input | 0.0265 | 0.0342 | ||
Weighted average remaining maturity/duration | 5 days | 2 months 23 days | ||
Recurring | Repurchase agreements - long-term | Discounted Cash Flow | ||||
Liabilities: | ||||
Outstanding Face Amount | $ 299,999 | $ 226,728 | ||
Amortized Cost Basis/Purchase Price | 299,999 | 226,728 | ||
Fair Value | $ 299,999 | $ 226,728 | ||
Financial instruments, measurement input | 0.0320 | 0.0347 | ||
Weighted average remaining maturity/duration | 1 year 3 months 10 days | 1 year 8 months 23 days | ||
Recurring | Mortgage loan financing | Discounted Cash Flow | ||||
Liabilities: | ||||
Outstanding Face Amount | $ 718,351 | $ 738,825 | ||
Amortized Cost Basis/Purchase Price | 723,313 | 743,902 | ||
Fair Value | $ 748,489 | $ 735,662 | ||
Financial instruments, measurement input | 0.0496 | 0.0509 | ||
Weighted average remaining maturity/duration | 1 year 6 months 3 days | 2 years 7 months 9 days | ||
Recurring | CLO debt | Discounted Cash Flow | ||||
Liabilities: | ||||
Outstanding Face Amount | $ 117,760 | $ 601,543 | ||
Amortized Cost Basis/Purchase Price | 117,760 | 601,543 | ||
Fair Value | $ 117,760 | $ 601,543 | ||
Financial instruments, measurement input | 0.0497 | 0.0441 | ||
Weighted average remaining maturity/duration | 5 years 10 months 28 days | 9 years 4 months 24 days | ||
Recurring | Participation Financing - Mortgage Loan Receivable | Discounted Cash Flow | ||||
Liabilities: | ||||
Outstanding Face Amount | $ 2,453 | |||
Amortized Cost Basis/Purchase Price | 2,453 | |||
Fair Value | $ 2,453 | |||
Financial instruments, measurement input | 0.1700 | |||
Weighted average remaining maturity/duration | 5 months 4 days | |||
Recurring | Borrowings from the FHLB | Discounted Cash Flow | ||||
Liabilities: | ||||
Outstanding Face Amount | $ 1,076,449 | $ 1,286,000 | ||
Amortized Cost Basis/Purchase Price | 1,076,449 | 1,286,000 | ||
Fair Value | $ 1,084,876 | $ 1,286,664 | ||
Financial instruments, measurement input | 0.0250 | 0.0255 | ||
Weighted average remaining maturity/duration | 2 years 3 months 25 days | 2 years 5 months 15 days | ||
Recurring | Senior unsecured notes | Broker Quotations Pricing Services Valuation Technique | ||||
Liabilities: | ||||
Outstanding Face Amount | $ 1,166,201 | $ 1,166,201 | ||
Amortized Cost Basis/Purchase Price | 1,157,117 | 1,154,991 | ||
Fair Value | $ 1,201,973 | $ 1,111,288 | ||
Financial instruments, measurement input | 0.0539 | 0.0539 | ||
Weighted average remaining maturity/duration | 3 years 6 months 10 days | 4 years 3 months 10 days | ||
Recurring | Nonhedge derivatives | Counterparty Quotations Valuation Technique | ||||
Liabilities: | ||||
Nonhedge derivative liabilities | $ 270,471 | $ 578,971 | ||
Fair Value | $ 82 | $ 975 | ||
Weighted average remaining maturity/duration | 3 months | 3 months | ||
[1] | Includes amounts relating to consolidated variable interest entities. See Note 10 . |
FAIR VALUE OF FINANCIAL INSTR_4
FAIR VALUE OF FINANCIAL INSTRUMENTS - Summary of Financial Assets and Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | |
Assets: | |||
Fair value of assets | $ 3,487,684 | $ 3,564,681 | |
Provision for loan losses | [1] | (18,500) | (17,900) |
Liabilities: | |||
Fair value of liabilities | 4,939,146 | 4,401,295 | |
Repurchase agreements - short-term | |||
Liabilities: | |||
Outstanding Face Amount | 1,486,049 | 436,957 | |
Fair value of liabilities | 1,486,049 | 436,957 | |
Repurchase agreements - long-term | |||
Liabilities: | |||
Outstanding Face Amount | 299,999 | 226,728 | |
Fair value of liabilities | 299,999 | 226,728 | |
Mortgage loan financing | |||
Liabilities: | |||
Outstanding Face Amount | 718,351 | 738,825 | |
Fair value of liabilities | 748,489 | 735,662 | |
CLO debt | |||
Liabilities: | |||
Outstanding Face Amount | 117,760 | 601,543 | |
Fair value of liabilities | 117,760 | 601,543 | |
Participation Financing - Mortgage Loan Receivable | |||
Liabilities: | |||
Outstanding Face Amount | 2,453 | ||
Fair value of liabilities | 2,453 | ||
Borrowings from the FHLB | |||
Liabilities: | |||
Outstanding Face Amount | 1,076,449 | 1,286,000 | |
Fair value of liabilities | 1,084,876 | 1,286,664 | |
Senior unsecured notes | |||
Liabilities: | |||
Outstanding Face Amount | 1,166,201 | 1,166,201 | |
Fair value of liabilities | 1,201,973 | 1,111,288 | |
CMBS | |||
Assets: | |||
Outstanding Face Amount | 12,144 | 12,210 | |
Fair value of assets | 11,627 | 11,306 | |
CMBS interest-only | |||
Assets: | |||
Outstanding Face Amount | 11,123 | 11,189 | |
Fair value of assets | 839 | 902 | |
Total mortgage loan receivables held for investment, net, at amortized cost | |||
Assets: | |||
Outstanding Face Amount | 3,249,711 | 3,340,381 | |
Fair value of assets | 3,249,383 | 3,324,588 | |
Mortgage loan receivables held for sale | |||
Assets: | |||
Outstanding Face Amount | 173,957 | 181,905 | |
Fair value of assets | 182,716 | 187,870 | |
FHLB stock | |||
Assets: | |||
Outstanding Face Amount | 61,619 | 57,915 | |
Fair value of assets | 61,619 | 57,915 | |
Level 1 | |||
Assets: | |||
Fair value of assets | 0 | 0 | |
Provision for loan losses | 0 | 0 | |
Liabilities: | |||
Fair value of liabilities | 0 | 0 | |
Level 1 | Repurchase agreements - short-term | |||
Liabilities: | |||
Fair value of liabilities | 0 | 0 | |
Level 1 | Repurchase agreements - long-term | |||
Liabilities: | |||
Fair value of liabilities | 0 | 0 | |
Level 1 | Mortgage loan financing | |||
Liabilities: | |||
Fair value of liabilities | 0 | 0 | |
Level 1 | CLO debt | |||
Liabilities: | |||
Fair value of liabilities | 0 | 0 | |
Level 1 | Participation Financing - Mortgage Loan Receivable | |||
Liabilities: | |||
Fair value of liabilities | 0 | ||
Level 1 | Borrowings from the FHLB | |||
Liabilities: | |||
Fair value of liabilities | 0 | 0 | |
Level 1 | Senior unsecured notes | |||
Liabilities: | |||
Fair value of liabilities | 0 | 0 | |
Level 1 | CMBS | |||
Assets: | |||
Fair value of assets | 0 | 0 | |
Level 1 | CMBS interest-only | |||
Assets: | |||
Fair value of assets | 0 | 0 | |
Level 1 | Total mortgage loan receivables held for investment, net, at amortized cost | |||
Assets: | |||
Fair value of assets | 0 | 0 | |
Level 1 | Mortgage loan receivables held for sale | |||
Assets: | |||
Fair value of assets | 0 | 0 | |
Level 1 | FHLB stock | |||
Assets: | |||
Fair value of assets | 0 | 0 | |
Level 2 | |||
Assets: | |||
Fair value of assets | 0 | 0 | |
Provision for loan losses | 0 | 0 | |
Liabilities: | |||
Fair value of liabilities | 0 | 0 | |
Level 2 | Repurchase agreements - short-term | |||
Liabilities: | |||
Fair value of liabilities | 0 | 0 | |
Level 2 | Repurchase agreements - long-term | |||
Liabilities: | |||
Fair value of liabilities | 0 | 0 | |
Level 2 | Mortgage loan financing | |||
Liabilities: | |||
Fair value of liabilities | 0 | 0 | |
Level 2 | CLO debt | |||
Liabilities: | |||
Fair value of liabilities | 0 | 0 | |
Level 2 | Participation Financing - Mortgage Loan Receivable | |||
Liabilities: | |||
Fair value of liabilities | 0 | ||
Level 2 | Borrowings from the FHLB | |||
Liabilities: | |||
Fair value of liabilities | 0 | 0 | |
Level 2 | Senior unsecured notes | |||
Liabilities: | |||
Fair value of liabilities | 0 | 0 | |
Level 2 | CMBS | |||
Assets: | |||
Fair value of assets | 0 | 0 | |
Level 2 | CMBS interest-only | |||
Assets: | |||
Fair value of assets | 0 | 0 | |
Level 2 | Total mortgage loan receivables held for investment, net, at amortized cost | |||
Assets: | |||
Fair value of assets | 0 | 0 | |
Level 2 | Mortgage loan receivables held for sale | |||
Assets: | |||
Fair value of assets | 0 | 0 | |
Level 2 | FHLB stock | |||
Assets: | |||
Fair value of assets | 0 | 0 | |
Level 3 | |||
Assets: | |||
Fair value of assets | 3,487,684 | 3,564,681 | |
Provision for loan losses | (18,500) | (17,900) | |
Liabilities: | |||
Fair value of liabilities | 4,939,146 | 4,401,295 | |
Level 3 | Repurchase agreements - short-term | |||
Liabilities: | |||
Fair value of liabilities | 1,486,049 | 436,957 | |
Level 3 | Repurchase agreements - long-term | |||
Liabilities: | |||
Fair value of liabilities | 299,999 | 226,728 | |
Level 3 | Mortgage loan financing | |||
Liabilities: | |||
Fair value of liabilities | 748,489 | 735,662 | |
Level 3 | CLO debt | |||
Liabilities: | |||
Fair value of liabilities | 117,760 | 601,543 | |
Level 3 | Participation Financing - Mortgage Loan Receivable | |||
Liabilities: | |||
Fair value of liabilities | 2,453 | ||
Level 3 | Borrowings from the FHLB | |||
Liabilities: | |||
Fair value of liabilities | 1,084,876 | 1,286,664 | |
Level 3 | Senior unsecured notes | |||
Liabilities: | |||
Fair value of liabilities | 1,201,973 | 1,111,288 | |
Level 3 | CMBS | |||
Assets: | |||
Fair value of assets | 11,627 | 11,306 | |
Level 3 | CMBS interest-only | |||
Assets: | |||
Fair value of assets | 839 | 902 | |
Level 3 | Total mortgage loan receivables held for investment, net, at amortized cost | |||
Assets: | |||
Fair value of assets | 3,249,383 | 3,324,588 | |
Level 3 | Mortgage loan receivables held for sale | |||
Assets: | |||
Fair value of assets | 182,716 | 187,870 | |
Level 3 | FHLB stock | |||
Assets: | |||
Fair value of assets | 61,619 | 57,915 | |
Recurring | |||
Assets: | |||
Fair value of assets | 1,899,012 | 1,397,918 | |
Recurring | Nonhedge derivatives | |||
Assets: | |||
Fair value of assets | 82 | ||
Liabilities: | |||
Nonhedge derivative liabilities | 270,471 | 605,871 | |
Fair value of liabilities | 975 | ||
Recurring | CMBS | |||
Assets: | |||
Outstanding Face Amount | 1,767,314 | 1,246,609 | |
Fair value of assets | 1,777,085 | 1,241,334 | |
Recurring | CMBS interest-only | |||
Assets: | |||
Outstanding Face Amount | 2,128,234 | 2,362,747 | |
Fair value of assets | 40,601 | 54,789 | |
Recurring | GNMA interest-only | |||
Assets: | |||
Outstanding Face Amount | 113,096 | 135,932 | |
Fair value of assets | 2,026 | 2,648 | |
Recurring | Agency securities | |||
Assets: | |||
Outstanding Face Amount | 641 | 668 | |
Fair value of assets | 654 | 662 | |
Recurring | GNMA permanent securities | |||
Assets: | |||
Outstanding Face Amount | 31,760 | 32,633 | |
Fair value of assets | 32,795 | 33,064 | |
Recurring | Corporate bonds | |||
Assets: | |||
Outstanding Face Amount | 32,088 | 55,305 | |
Fair value of assets | 32,372 | 53,871 | |
Recurring | Equity securities | |||
Assets: | |||
Fair value of assets | 13,457 | 11,550 | |
Recurring | Nonhedge derivatives | |||
Assets: | |||
Fair value of assets | 22 | ||
Nonhedge derivative assets | 6,000 | ||
Recurring | Level 1 | |||
Assets: | |||
Fair value of assets | 13,457 | 11,550 | |
Recurring | Level 1 | Nonhedge derivatives | |||
Assets: | |||
Fair value of assets | 0 | ||
Liabilities: | |||
Fair value of liabilities | 0 | ||
Recurring | Level 1 | CMBS | |||
Assets: | |||
Fair value of assets | 0 | 0 | |
Recurring | Level 1 | CMBS interest-only | |||
Assets: | |||
Fair value of assets | 0 | 0 | |
Recurring | Level 1 | GNMA interest-only | |||
Assets: | |||
Fair value of assets | 0 | 0 | |
Recurring | Level 1 | Agency securities | |||
Assets: | |||
Fair value of assets | 0 | 0 | |
Recurring | Level 1 | GNMA permanent securities | |||
Assets: | |||
Fair value of assets | 0 | 0 | |
Recurring | Level 1 | Corporate bonds | |||
Assets: | |||
Fair value of assets | 0 | 0 | |
Recurring | Level 1 | Equity securities | |||
Assets: | |||
Fair value of assets | 13,457 | 11,550 | |
Recurring | Level 1 | Nonhedge derivatives | |||
Assets: | |||
Fair value of assets | 0 | ||
Recurring | Level 2 | |||
Assets: | |||
Fair value of assets | 22 | 0 | |
Recurring | Level 2 | Nonhedge derivatives | |||
Liabilities: | |||
Fair value of liabilities | 82 | 975 | |
Recurring | Level 2 | CMBS | |||
Assets: | |||
Fair value of assets | 0 | 0 | |
Recurring | Level 2 | CMBS interest-only | |||
Assets: | |||
Fair value of assets | 0 | 0 | |
Recurring | Level 2 | GNMA interest-only | |||
Assets: | |||
Fair value of assets | 0 | 0 | |
Recurring | Level 2 | Agency securities | |||
Assets: | |||
Fair value of assets | 0 | 0 | |
Recurring | Level 2 | GNMA permanent securities | |||
Assets: | |||
Fair value of assets | 0 | 0 | |
Recurring | Level 2 | Corporate bonds | |||
Assets: | |||
Fair value of assets | 0 | 0 | |
Recurring | Level 2 | Nonhedge derivatives | |||
Assets: | |||
Fair value of assets | 22 | ||
Recurring | Level 3 | |||
Assets: | |||
Fair value of assets | 1,885,533 | 1,386,368 | |
Recurring | Level 3 | Nonhedge derivatives | |||
Liabilities: | |||
Fair value of liabilities | 0 | 0 | |
Recurring | Level 3 | CMBS | |||
Assets: | |||
Fair value of assets | 1,777,085 | 1,241,334 | |
Recurring | Level 3 | CMBS interest-only | |||
Assets: | |||
Fair value of assets | 40,601 | 54,789 | |
Recurring | Level 3 | GNMA interest-only | |||
Assets: | |||
Fair value of assets | 2,026 | 2,648 | |
Recurring | Level 3 | Agency securities | |||
Assets: | |||
Fair value of assets | 654 | 662 | |
Recurring | Level 3 | GNMA permanent securities | |||
Assets: | |||
Fair value of assets | 32,795 | 33,064 | |
Recurring | Level 3 | Corporate bonds | |||
Assets: | |||
Fair value of assets | 32,372 | $ 53,871 | |
Recurring | Level 3 | Nonhedge derivatives | |||
Assets: | |||
Fair value of assets | $ 0 | ||
[1] | Includes amounts relating to consolidated variable interest entities. See Note 10 . |
FAIR VALUE OF FINANCIAL INSTR_5
FAIR VALUE OF FINANCIAL INSTRUMENTS - Schedule of Changes in Level 3 (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | $ 1,385,957 | $ 1,106,517 |
Transfer from level 2 | 0 | 0 |
Purchases | 1,193,671 | 303,007 |
Sales | (533,811) | (306,109) |
Paydowns/maturities | (178,402) | (93,185) |
Amortization of premium/discount | (9,333) | (17,842) |
Unrealized gain/(loss) | 16,813 | (9,203) |
Realized gain/(loss) on sale | 10,639 | (4,896) |
Ending balance | $ 1,885,534 | $ 978,289 |
FAIR VALUE OF FINANCIAL INSTR_6
FAIR VALUE OF FINANCIAL INSTRUMENTS - Schedule of Quantitative Information (Details) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019USD ($) | Dec. 31, 2018USD ($) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Carrying Value | $ 1,897,999 | $ 1,398,576 |
CMBS | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Carrying Value | 1,788,712 | 1,252,640 |
CMBS interest-only | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Carrying Value | 41,440 | 55,691 |
GNMA interest-only | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Carrying Value | 2,026 | 2,648 |
Agency securities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Carrying Value | 654 | 662 |
GNMA permanent securities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Carrying Value | 32,795 | 33,064 |
Corporate bonds | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Carrying Value | $ 32,372 | $ 53,871 |
Level 3 | CMBS | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Duration | 0 months | 0 years |
Level 3 | CMBS | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Duration | 1 year 6 months 14 days | 2 years 6 months |
Level 3 | CMBS | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Duration | 7 years 1 month 6 days | 7 years 9 months 10 days |
Level 3 | CMBS interest-only | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Duration | 29 days | 1 month 20 days |
Level 3 | CMBS interest-only | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Duration | 2 years 7 months 9 days | 2 years 11 months 15 days |
Level 3 | CMBS interest-only | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Duration | 3 years 10 months 6 days | 6 years 10 months 9 days |
Level 3 | GNMA interest-only | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Duration | 0 months | 14 days |
Level 3 | GNMA interest-only | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Duration | 2 years 9 months 10 days | 3 years 1 month 17 days |
Level 3 | GNMA interest-only | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Duration | 8 years 7 months 9 days | 4 years 9 months 7 days |
Level 3 | Agency securities | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Duration | 0 months | 0 years |
Level 3 | Agency securities | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Duration | 2 years 5 months 15 days | 2 years 9 months 29 days |
Level 3 | Agency securities | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Duration | 3 years 2 months 1 day | 3 years 9 months 25 days |
Level 3 | GNMA permanent securities | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Duration | 1 year 1 month 24 days | 0 years |
Level 3 | GNMA permanent securities | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Duration | 7 years 9 months 3 days | 5 years 7 months 13 days |
Level 3 | GNMA permanent securities | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Duration | 13 years 11 months 26 days | 5 years 10 months 17 days |
Level 3 | Corporate bonds | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Duration | 1 year 18 days | 1 year 11 months 8 days |
Level 3 | Corporate bonds | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Duration | 1 year 18 days | 2 years 2 months 8 days |
Level 3 | Corporate bonds | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Duration | 1 year 18 days | 2 years 8 months 12 days |
Level 3 | Yield | CMBS | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 0.0168 | 0 |
Level 3 | Yield | CMBS | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 0.031 | 0.0354 |
Level 3 | Yield | CMBS | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 0.2055 | 0.2167 |
Level 3 | Yield | CMBS interest-only | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 0.0179 | 0.0087 |
Level 3 | Yield | CMBS interest-only | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 0.0373 | 0.0471 |
Level 3 | Yield | CMBS interest-only | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 0.0635 | 0.0811 |
Level 3 | Yield | GNMA interest-only | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | (0.0719) | 0.0121 |
Level 3 | Yield | GNMA interest-only | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 0.1444 | 0.0554 |
Level 3 | Yield | GNMA interest-only | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 0.4447 | 0.1021 |
Level 3 | Yield | Agency securities | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 0 | 0 |
Level 3 | Yield | Agency securities | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 0.0143 | 0.021 |
Level 3 | Yield | Agency securities | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 0.0185 | 0.0284 |
Level 3 | Yield | GNMA permanent securities | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 0.0343 | 0 |
Level 3 | Yield | GNMA permanent securities | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 0.1872 | 0.0351 |
Level 3 | Yield | GNMA permanent securities | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 0.8430 | 0.04 |
Level 3 | Yield | Corporate bonds | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 0.0279 | 0.053 |
Level 3 | Yield | Corporate bonds | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 0.0279 | 0.0535 |
Level 3 | Yield | Corporate bonds | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 0.0279 | 0.0546 |
Level 3 | Prepayment speed | CMBS interest-only | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 100 | 100 |
Level 3 | Prepayment speed | CMBS interest-only | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 100 | 100 |
Level 3 | Prepayment speed | CMBS interest-only | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 100 | 100 |
Level 3 | Prepayment speed | GNMA interest-only | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 5 | 5 |
Level 3 | Prepayment speed | GNMA interest-only | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 11.57 | 6.58 |
Level 3 | Prepayment speed | GNMA interest-only | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 15 | 15 |
Level 3 | Internal Model Third Party Inputs Valuation Technique | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Carrying Value | $ 1,897,999 | $ 1,398,576 |
Recurring | Internal Model Third Party Inputs Valuation Technique | CMBS | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 0.0314 | 0.0314 |
Duration | 2 years 4 months 17 days | 2 years 3 months 29 days |
Recurring | Internal Model Third Party Inputs Valuation Technique | CMBS interest-only | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 0.0365 | 0.0280 |
Duration | 2 years 7 months 9 days | 2 years 8 months 8 days |
Recurring | Internal Model Third Party Inputs Valuation Technique | GNMA interest-only | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 0.0965 | 0.0630 |
Duration | 2 years 8 months 23 days | 4 years 1 month 9 days |
Recurring | Internal Model Third Party Inputs Valuation Technique | Agency securities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 0.0174 | 0.0183 |
Duration | 1 year 11 months 19 days | 2 years 4 months 9 days |
Recurring | Internal Model Third Party Inputs Valuation Technique | GNMA permanent securities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 0.0327 | 0.0376 |
Duration | 4 years 6 months 18 days | 5 years 10 days |
Recurring | Internal Model Third Party Inputs Valuation Technique | Corporate bonds | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 0.0481 | 0.0504 |
Duration | 1 year 3 months 21 days | 2 years 6 months 3 days |
Recurring | Level 3 | Internal Model Third Party Inputs Valuation Technique | CMBS | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Carrying Value | $ 1,788,712 | $ 1,252,640 |
Recurring | Level 3 | Internal Model Third Party Inputs Valuation Technique | CMBS interest-only | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Carrying Value | 41,440 | 55,691 |
Recurring | Level 3 | Internal Model Third Party Inputs Valuation Technique | GNMA interest-only | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Carrying Value | 2,026 | 2,648 |
Recurring | Level 3 | Internal Model Third Party Inputs Valuation Technique | Agency securities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Carrying Value | 654 | 662 |
Recurring | Level 3 | Internal Model Third Party Inputs Valuation Technique | GNMA permanent securities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Carrying Value | 32,795 | 33,064 |
Recurring | Level 3 | Internal Model Third Party Inputs Valuation Technique | Corporate bonds | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Carrying Value | $ 32,372 | $ 53,871 |
FAIR VALUE OF FINANCIAL INSTR_7
FAIR VALUE OF FINANCIAL INSTRUMENTS - Nonrecurring Fair Values (Details) - USD ($) $ in Thousands | May 01, 2019 | Sep. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 |
Fair Value Disclosures [Abstract] | ||||||
Impairment of real estate | $ 0 | $ 1,400 | $ 0 | $ 1,350 | $ 0 | |
Operating lease income | $ 3,900 | 24,405 | 81,106 | |||
Loss on sale of real estate | 3,500 | |||||
Depreciation and amortization | 400 | $ 9,030 | $ 10,417 | $ 29,192 | $ 31,896 | |
Loss on sale of real estate | $ 20 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | ||
Income Tax Contingency [Line Items] | ||||||
Income tax expense (benefit) | $ 400 | $ 7,200 | $ (6,900) | $ 10,200 | $ 3,300 | |
Deferred income tax expense (benefit) | 700 | $ (6,000) | 7,400 | $ (4,500) | ||
Deferred tax asset related to capital losses | 10,000 | $ 10,000 | ||||
Fees and other income | 2,500 | |||||
Applicable cash savings | 85.00% | |||||
Applicable cash savings available to entity | 15.00% | |||||
Amount payable pursuant to tax receivable agreement | [1] | 1,559 | $ 1,559 | 1,570 | ||
Other assets | ||||||
Income Tax Contingency [Line Items] | ||||||
Deferred tax liabilities | 4,700 | 4,700 | ||||
Deferred tax asset | 2,300 | |||||
Accrued Liabilities | ||||||
Income Tax Contingency [Line Items] | ||||||
Unrecognized tax benefits | 200 | 200 | 800 | |||
Amount of unrecognized tax benefit released due to statue of limitations | 600 | |||||
Amount Payable Pursuant to Tax Receivable Agreement | ||||||
Income Tax Contingency [Line Items] | ||||||
Amount payable pursuant to tax receivable agreement | $ 1,600 | $ 1,600 | $ 1,600 | |||
[1] | Includes amounts relating to consolidated variable interest entities. See Note 10 . |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Millions | Mar. 03, 2017 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Mar. 05, 2019 | Dec. 12, 2018 | Mar. 13, 2017 | Oct. 18, 2016 |
Affiliated Entity | ||||||||
RELATED PARTY TRANSACTIONS | ||||||||
Investment in mutual fund | $ 0.8 | $ 10 | ||||||
Fee earned on assets under management | 0.75% | |||||||
Fund's cap expense | 0.95% | |||||||
Affiliated Entity | Related Reserve IV LLC | B Participation Interest | ||||||||
RELATED PARTY TRANSACTIONS | ||||||||
Mortgage loan participation purchased by related party | $ 4 | |||||||
Participating mortgage loan amount (up to) | $ 136.5 | |||||||
Percentage of loans receivable with fixed rates of interest | 17.00% | |||||||
Affiliated Entity | Related Reserve IV LLC | B Participation Interest | Participation Financing - Mortgage Loan Receivable | ||||||||
RELATED PARTY TRANSACTIONS | ||||||||
Interest expense, debt | $ 0.1 | $ 0.2 | $ 0.4 | |||||
Affiliated Entity | Brickell Heights Commercial LLC | First mortgage loan | ||||||||
RELATED PARTY TRANSACTIONS | ||||||||
Loans receivable from related party | $ 14.3 | $ 6.4 | ||||||
Related | Class A Common Stock | ||||||||
RELATED PARTY TRANSACTIONS | ||||||||
Related party purchases of shares from shareholders | $ 80 | |||||||
Consolidated Joint Venture | Brickell Heights Commercial LLC | First mortgage loan | Woodbury, New York | ||||||||
RELATED PARTY TRANSACTIONS | ||||||||
Interest income, related party | 0.1 | |||||||
Consolidated Joint Venture | Brickell Heights Commercial LLC | First mortgage loan | Bloomfield Heights, Michigan | ||||||||
RELATED PARTY TRANSACTIONS | ||||||||
Interest income, related party | $ 0.3 | |||||||
Consolidated Joint Venture | Related Special Assets LLC | Brickell Heights Commercial LLC | ||||||||
RELATED PARTY TRANSACTIONS | ||||||||
Ownership Interest | 0.70% | 12.00% |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Jan. 01, 2019 | Dec. 31, 2018 | |
Unfunded Loan Commitments | ||||||
Tenant reimbursements | $ 1.3 | $ 2.3 | $ 4.6 | $ 7.8 | ||
Provision for loan losses | ||||||
Unfunded Loan Commitments | ||||||
Unfunded commitments of mortgage loan receivables held for investment | 257.7 | 257.7 | $ 379.8 | |||
Accounting Standards Update 2016-02 | ||||||
Unfunded Loan Commitments | ||||||
Operating lease liability | 2.7 | 2.7 | $ 3.5 | |||
Operating lease, right-of-use asset | $ 2.7 | $ 2.7 | $ 3.3 |
SEGMENT REPORTING - Additional
SEGMENT REPORTING - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2019segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
SEGMENT REPORTING - Schedule of
SEGMENT REPORTING - Schedule of Segments (Details) - USD ($) $ in Thousands | May 01, 2019 | Feb. 06, 2019 | Sep. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Income Statement [Abstract] | |||||||||
Interest income | $ 82,251 | $ 90,386 | $ 254,040 | $ 253,822 | |||||
Interest expense | (51,397) | (51,476) | (155,015) | (144,606) | |||||
Net interest income | 30,854 | 38,910 | 99,025 | 109,216 | |||||
Provision for loan losses | 0 | (10,300) | (600) | (13,600) | |||||
Net interest income after provision for loan losses | 30,854 | 28,610 | 98,425 | 95,616 | |||||
Operating lease income | $ 3,900 | 24,405 | 81,106 | ||||||
Operating lease income | 24,997 | 79,306 | |||||||
Sale of loans, net | 11,247 | 1,861 | 38,589 | 12,893 | |||||
Realized gain (loss) on securities | 3,396 | (2,554) | 10,726 | (4,896) | |||||
Unrealized gain (loss) on equity securities | 254 | 0 | 1,341 | 0 | |||||
Unrealized gain (loss) on Agency interest-only securities | 16 | 142 | 38 | 456 | |||||
Realized gain (loss) on sale of real estate, net | 2,082 | 63,704 | 963 | 96,341 | |||||
Impairment of real estate | 0 | $ (1,400) | 0 | (1,350) | 0 | ||||
Fee and other income | 5,166 | 4,851 | 17,047 | 17,579 | |||||
Net result from derivative transactions | (9,465) | 7,115 | (35,956) | 29,156 | |||||
Earnings (loss) from investment in unconsolidated joint ventures | 1,094 | 401 | 3,617 | 466 | |||||
Gain (loss) on extinguishment/defeasance of debt | $ (1,100) | 0 | (4,323) | (1,070) | (4,392) | ||||
Total other income (loss) | 38,195 | 96,194 | 115,051 | 226,909 | |||||
Salaries and employee benefits | (14,319) | (15,792) | (52,800) | (46,754) | |||||
Operating expenses | (5,314) | (5,464) | (16,727) | (16,608) | |||||
Real estate operating expenses | (6,270) | (7,152) | (17,776) | (23,806) | |||||
Fee expense | (2,056) | (1,311) | (4,951) | (2,953) | |||||
Depreciation and amortization | $ (400) | (9,030) | (10,417) | (29,192) | (31,896) | ||||
Total costs and expenses | (36,989) | (40,136) | (121,446) | (122,017) | |||||
Income tax (expense) benefit | (1,112) | (1,204) | (478) | (5,679) | |||||
Net income (loss) | 30,948 | 83,464 | 91,552 | 194,829 | |||||
Total assets | [1] | 6,619,874 | 6,619,874 | $ 6,272,872 | |||||
Investment in unconsolidated joint ventures | [1] | 51,419 | 51,419 | 40,354 | |||||
Investment in FHLB stock | [1] | 61,619 | 61,619 | 57,915 | |||||
Professional fees | 3,000 | 2,900 | 9,100 | 8,700 | |||||
Operating Segment | |||||||||
Income Statement [Abstract] | |||||||||
Investment in unconsolidated joint ventures | 51,400 | 51,400 | 40,400 | ||||||
Operating Segment | Loans | |||||||||
Income Statement [Abstract] | |||||||||
Interest income | 66,422 | 81,779 | 209,369 | 228,273 | |||||
Interest expense | (12,063) | (17,232) | (41,043) | (46,286) | |||||
Net interest income | 54,359 | 64,547 | 168,326 | 181,987 | |||||
Provision for loan losses | 0 | (10,300) | (600) | (13,600) | |||||
Net interest income after provision for loan losses | 54,359 | 54,247 | 167,726 | 168,387 | |||||
Operating lease income | 0 | 0 | |||||||
Operating lease income | 0 | 0 | |||||||
Sale of loans, net | 11,247 | 1,861 | 38,589 | 12,893 | |||||
Realized gain (loss) on securities | 0 | 0 | 0 | 0 | |||||
Unrealized gain (loss) on equity securities | 0 | 0 | |||||||
Unrealized gain (loss) on Agency interest-only securities | 0 | 0 | 0 | 0 | |||||
Realized gain (loss) on sale of real estate, net | 0 | 0 | 0 | 0 | |||||
Impairment of real estate | 0 | ||||||||
Fee and other income | 3,839 | 3,895 | 13,095 | 10,823 | |||||
Net result from derivative transactions | (6,557) | 3,741 | (20,273) | 14,516 | |||||
Earnings (loss) from investment in unconsolidated joint ventures | 0 | 0 | 0 | 0 | |||||
Gain (loss) on extinguishment/defeasance of debt | 0 | 0 | (69) | ||||||
Total other income (loss) | 8,529 | 9,497 | 31,411 | 38,163 | |||||
Salaries and employee benefits | 0 | 0 | 0 | 0 | |||||
Operating expenses | 0 | 61 | 0 | 61 | |||||
Real estate operating expenses | 0 | 0 | 0 | 0 | |||||
Fee expense | (1,264) | (928) | (3,516) | (2,160) | |||||
Depreciation and amortization | 0 | 0 | 0 | 0 | |||||
Total costs and expenses | (1,264) | (867) | (3,516) | (2,099) | |||||
Income tax (expense) benefit | 0 | 0 | 0 | 0 | |||||
Net income (loss) | 61,624 | 62,877 | 195,621 | 204,451 | |||||
Total assets | 3,387,157 | 3,387,157 | 3,482,929 | ||||||
Operating Segment | Securities | |||||||||
Income Statement [Abstract] | |||||||||
Interest income | 15,515 | 8,541 | 43,844 | 25,217 | |||||
Interest expense | (5,632) | (1,482) | (12,250) | (3,423) | |||||
Net interest income | 9,883 | 7,059 | 31,594 | 21,794 | |||||
Provision for loan losses | 0 | 0 | 0 | 0 | |||||
Net interest income after provision for loan losses | 9,883 | 7,059 | 31,594 | 21,794 | |||||
Operating lease income | 0 | 0 | |||||||
Operating lease income | 0 | 0 | |||||||
Sale of loans, net | 0 | 0 | 0 | 0 | |||||
Realized gain (loss) on securities | 3,396 | (2,554) | 10,726 | (4,896) | |||||
Unrealized gain (loss) on equity securities | 254 | 1,341 | |||||||
Unrealized gain (loss) on Agency interest-only securities | 16 | 142 | 38 | 456 | |||||
Realized gain (loss) on sale of real estate, net | 0 | 0 | 0 | 0 | |||||
Impairment of real estate | 0 | ||||||||
Fee and other income | 428 | 0 | 1,165 | 72 | |||||
Net result from derivative transactions | (2,908) | 3,374 | (15,683) | 14,640 | |||||
Earnings (loss) from investment in unconsolidated joint ventures | 0 | 0 | 0 | 0 | |||||
Gain (loss) on extinguishment/defeasance of debt | 0 | 0 | 0 | ||||||
Total other income (loss) | 1,186 | 962 | (2,413) | 10,272 | |||||
Salaries and employee benefits | 0 | 0 | 0 | 0 | |||||
Operating expenses | 0 | 0 | 0 | 0 | |||||
Real estate operating expenses | 0 | 0 | 0 | 0 | |||||
Fee expense | (92) | (91) | (280) | (297) | |||||
Depreciation and amortization | 0 | 0 | 0 | 0 | |||||
Total costs and expenses | (92) | (91) | (280) | (297) | |||||
Income tax (expense) benefit | 0 | 0 | 0 | 0 | |||||
Net income (loss) | 10,977 | 7,930 | 28,901 | 31,769 | |||||
Total assets | 1,911,456 | 1,911,456 | 1,410,126 | ||||||
Operating Segment | Real Estate | |||||||||
Income Statement [Abstract] | |||||||||
Interest income | 7 | 6 | 21 | 16 | |||||
Interest expense | (9,646) | (9,213) | (27,620) | (25,799) | |||||
Net interest income | (9,639) | (9,207) | (27,599) | (25,783) | |||||
Provision for loan losses | 0 | 0 | 0 | 0 | |||||
Net interest income after provision for loan losses | (9,639) | (9,207) | (27,599) | (25,783) | |||||
Operating lease income | 24,405 | 81,106 | |||||||
Operating lease income | 24,997 | 79,306 | |||||||
Sale of loans, net | 0 | 0 | 0 | 0 | |||||
Realized gain (loss) on securities | 0 | 0 | 0 | 0 | |||||
Unrealized gain (loss) on equity securities | 0 | 0 | |||||||
Unrealized gain (loss) on Agency interest-only securities | 0 | 0 | 0 | 0 | |||||
Realized gain (loss) on sale of real estate, net | 2,082 | 63,704 | 963 | 96,341 | |||||
Impairment of real estate | (1,350) | ||||||||
Fee and other income | 0 | 0 | 7 | 3,416 | |||||
Net result from derivative transactions | 0 | 0 | 0 | 0 | |||||
Earnings (loss) from investment in unconsolidated joint ventures | 1,094 | 401 | 3,617 | 466 | |||||
Gain (loss) on extinguishment/defeasance of debt | (4,323) | (1,070) | (4,323) | ||||||
Total other income (loss) | 27,581 | 84,779 | 83,273 | 175,206 | |||||
Salaries and employee benefits | 0 | 0 | 0 | 0 | |||||
Operating expenses | 0 | 0 | 0 | 0 | |||||
Real estate operating expenses | (6,270) | (7,152) | (17,776) | (23,806) | |||||
Fee expense | (700) | (292) | (1,155) | (496) | |||||
Depreciation and amortization | (9,005) | (10,398) | (29,118) | (31,840) | |||||
Total costs and expenses | (15,975) | (17,842) | (48,049) | (56,142) | |||||
Income tax (expense) benefit | 0 | 0 | 0 | 0 | |||||
Net income (loss) | 1,967 | 57,730 | 7,625 | 93,281 | |||||
Total assets | 1,032,752 | 1,032,752 | 1,038,376 | ||||||
Corporate/Other | |||||||||
Income Statement [Abstract] | |||||||||
Interest income | 307 | 60 | 806 | 316 | |||||
Interest expense | (24,056) | (23,549) | (74,102) | (69,098) | |||||
Net interest income | (23,749) | (23,489) | (73,296) | (68,782) | |||||
Provision for loan losses | 0 | 0 | 0 | 0 | |||||
Net interest income after provision for loan losses | (23,749) | (23,489) | (73,296) | (68,782) | |||||
Operating lease income | 0 | 0 | |||||||
Operating lease income | 0 | 0 | |||||||
Sale of loans, net | 0 | 0 | 0 | 0 | |||||
Realized gain (loss) on securities | 0 | 0 | 0 | 0 | |||||
Unrealized gain (loss) on equity securities | 0 | 0 | |||||||
Unrealized gain (loss) on Agency interest-only securities | 0 | 0 | 0 | 0 | |||||
Realized gain (loss) on sale of real estate, net | 0 | 0 | 0 | 0 | |||||
Impairment of real estate | 0 | ||||||||
Fee and other income | 899 | 956 | 2,780 | 3,268 | |||||
Net result from derivative transactions | 0 | 0 | 0 | 0 | |||||
Earnings (loss) from investment in unconsolidated joint ventures | 0 | 0 | 0 | 0 | |||||
Gain (loss) on extinguishment/defeasance of debt | 0 | 0 | 0 | ||||||
Total other income (loss) | 899 | 956 | 2,780 | 3,268 | |||||
Salaries and employee benefits | (14,319) | (15,792) | (52,800) | (46,754) | |||||
Operating expenses | (5,314) | (5,525) | (16,727) | (16,669) | |||||
Real estate operating expenses | 0 | 0 | |||||||
Fee expense | 0 | 0 | 0 | 0 | |||||
Depreciation and amortization | (25) | (19) | (74) | (56) | |||||
Total costs and expenses | (19,658) | (21,336) | (69,601) | (63,479) | |||||
Income tax (expense) benefit | (1,112) | (1,204) | (478) | (5,679) | |||||
Net income (loss) | (43,620) | $ (45,073) | (140,595) | $ (134,672) | |||||
Total assets | 288,509 | 288,509 | 341,441 | ||||||
Investment in FHLB stock | 61,600 | 61,600 | 57,900 | ||||||
Deferred tax (liability) | (4,700) | (4,700) | |||||||
Deferred tax asset | 2,300 | ||||||||
Corporate/Other | Senior Unsecured Notes | |||||||||
Income Statement [Abstract] | |||||||||
Senior notes | $ 1,200,000 | $ 1,200,000 | $ 1,200,000 | ||||||
[1] | Includes amounts relating to consolidated variable interest entities. See Note 10 . |
Uncategorized Items - ladr09302
Label | Element | Value |
Restricted Cash and Investments | us-gaap_RestrictedCashAndInvestments | $ 35,288,000 |
Restricted Cash and Investments | us-gaap_RestrictedCashAndInvestments | 38,656,000 |
Restricted Cash and Investments | us-gaap_RestrictedCashAndInvestments | $ 30,572,000 |