Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2020 | Oct. 15, 2020 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2020 | |
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 | |
Title of 12(b) Security | Class A common stock, $0.001 par value | |
Trading Symbol | LADR | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Smaller Reporting Company | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0001577670 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Common Class A | ||
Entity Common Stock, Shares Outstanding | 120,267,457 | |
Common Class B | ||
Entity Common Stock, Shares Outstanding | 0 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 | |
Assets | |||
Cash and cash equivalents | [1] | $ 875,839 | $ 58,171 |
Restricted cash | [1] | 41,897 | 297,575 |
Mortgage loan receivables held for investment, net, at amortized cost: | |||
Mortgage loans held by consolidated subsidiaries | [1] | 2,731,254 | 3,257,036 |
Allowance for credit losses | (47,084) | (20,500) | |
Mortgage loan receivables held for sale | [1] | 30,553 | 122,325 |
Real estate securities | [1] | 1,447,625 | 1,721,305 |
Real estate and related lease intangibles, net | [1] | 990,583 | 1,048,081 |
Investments in and advances to unconsolidated joint ventures | [1] | 49,155 | 48,433 |
FHLB stock | [1] | 61,619 | 61,619 |
Derivative instruments | [1] | 449 | 693 |
Accrued interest receivable | [1] | 18,259 | 21,066 |
Other assets | [1] | 159,314 | 53,348 |
Total assets | [1] | 6,359,463 | 6,669,152 |
Liabilities | |||
Debt obligations, net | [1] | 4,714,510 | 4,859,873 |
Dividends payable | [1] | 26,236 | 38,696 |
Accrued expenses | [1] | 36,179 | 72,397 |
Other liabilities | [1] | 60,744 | 59,209 |
Total liabilities | [1] | 4,837,669 | 5,030,175 |
Commitments and contingencies (Note 18) | [1] | 0 | 0 |
Equity | |||
Additional paid-in capital | [1] | 1,726,339 | 1,532,384 |
Treasury stock, 2,585,308 and 3,184,269 shares, at cost | [1] | (54,543) | (42,699) |
Retained earnings (dividends in excess of earnings) | [1] | (126,965) | (35,746) |
Accumulated other comprehensive income (loss) | [1] | (28,448) | 4,218 |
Total shareholders’ equity | [1] | 1,516,503 | 1,458,277 |
Noncontrolling interest in operating partnership | [1] | 0 | 172,054 |
Noncontrolling interest in consolidated joint ventures | [1] | 5,291 | 8,646 |
Total equity | [1] | 1,521,794 | 1,638,977 |
Total liabilities and equity | [1] | 6,359,463 | 6,669,152 |
Common Class A | |||
Equity | |||
Common stock | [1] | 120 | 108 |
Common Class B | |||
Equity | |||
Common stock | [1] | $ 0 | $ 12 |
[1] | Includes amounts relating to consolidated variable interest entities. See Note 1 and Note 10. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2020 | Dec. 31, 2019 |
Treasury stock (in shares) | 2,585,308 | 3,184,269 |
Common Class A | ||
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) | 122,852,765 | 120,267,457 |
Common stock, outstanding (in shares) | 110,693,832 | 107,509,563 |
Common Class B | ||
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) | 0 | 12,158,933 |
Common stock, outstanding (in shares) | 0 | 12,158,933 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Net interest income | ||||
Interest income | $ 54,621,000 | $ 82,251,000 | $ 189,306,000 | $ 254,040,000 |
Interest expense | 56,398,000 | 51,397,000 | 176,225,000 | 155,015,000 |
Net interest income (expense) | (1,777,000) | 30,854,000 | 13,081,000 | 99,025,000 |
Provision for/(release of) loan loss reserves | (2,512,000) | 0 | 23,340,000 | 600,000 |
Net interest income (expense) after provision for/(release of) loan losses | 735,000 | 30,854,000 | (10,259,000) | 98,425,000 |
Other income (loss) | ||||
Operating lease income | 25,464,000 | 24,405,000 | 75,565,000 | 81,106,000 |
Sale of loans, net | 1,127,000 | 11,247,000 | 1,387,000 | 38,589,000 |
Realized gain (loss) on securities | (303,000) | 3,396,000 | (12,089,000) | 10,726,000 |
Unrealized gain (loss) on equity securities | 0 | 254,000 | (132,000) | 1,341,000 |
Unrealized gain (loss) on Agency interest-only securities | 9,000 | 16,000 | 183,000 | 38,000 |
Realized gain (loss) on sale of real estate, net | 21,588,000 | 2,082,000 | 32,116,000 | 963,000 |
Impairment of real estate | 0 | 0 | 0 | (1,350,000) |
Fee and other income | 3,051,000 | 5,166,000 | 8,075,000 | 17,047,000 |
Net result from derivative transactions | 260,000 | (9,465,000) | (15,988,000) | (35,956,000) |
Earnings (loss) from investment in unconsolidated joint ventures | 447,000 | 1,094,000 | 1,359,000 | 3,617,000 |
Gain (loss) on extinguishment/defeasance of debt | 1,167,000 | 0 | 22,244,000 | (1,070,000) |
Total other income (loss) | 52,810,000 | 38,195,000 | 112,720,000 | 115,051,000 |
Costs and expenses | ||||
Salaries and employee benefits | 7,858,000 | 14,319,000 | 31,880,000 | 52,800,000 |
Operating expenses | 3,938,000 | 5,314,000 | 15,957,000 | 16,727,000 |
Real estate operating expenses | 8,060,000 | 6,270,000 | 22,041,000 | 17,776,000 |
Fee expense | 2,476,000 | 2,056,000 | 5,892,000 | 4,951,000 |
Depreciation and amortization | 9,817,000 | 9,030,000 | 29,642,000 | 29,192,000 |
Total costs and expenses | 32,149,000 | 36,989,000 | 105,412,000 | 121,446,000 |
Income (loss) before taxes | 21,396,000 | 32,060,000 | (2,951,000) | 92,030,000 |
Income tax expense (benefit) | 14,000 | 1,112,000 | (5,078,000) | 478,000 |
Net income (loss) | 21,382,000 | 30,948,000 | 2,127,000 | 91,552,000 |
Net (income) loss attributable to noncontrolling interest in consolidated joint ventures | (4,149,000) | (64,000) | (5,417,000) | 691,000 |
Net (income) loss attributable to noncontrolling interest in operating partnership | $ (45,000) | $ (3,308,000) | $ 561,000 | $ (10,247,000) |
Earnings per share: | ||||
Basic (in dollars per share) | $ 0.15 | $ 0.26 | $ (0.02) | $ 0.78 |
Diluted (in dollars per share) | $ 0.14 | $ 0.26 | $ (0.02) | $ 0.77 |
Weighted average shares outstanding: | ||||
Basic (in shares) | 117,481,812 | 106,004,152 | 110,233,748 | 105,264,752 |
Diluted (in shares) | 118,791,927 | 106,603,713 | 110,233,748 | 106,232,581 |
Common Class A | ||||
Costs and expenses | ||||
Net income (loss) attributable to Class A common shareholders | $ 17,188,000 | $ 27,576,000 | $ (2,729,000) | $ 81,996,000 |
Earnings per share: | ||||
Basic (in dollars per share) | $ 0.15 | $ 0.26 | $ (0.02) | $ 0.78 |
Diluted (in dollars per share) | $ 0.14 | $ 0.26 | $ (0.02) | $ 0.77 |
Weighted average shares outstanding: | ||||
Basic (in shares) | 117,481,812 | 106,004,152 | 110,233,748 | 105,264,752 |
Diluted (in shares) | 118,791,927 | 106,603,713 | 110,233,748 | 106,232,581 |
Dividends per share of Class A common stock (in dollars per share) | $ 0.200 | $ 0.340 | $ 0.740 | $ 1.020 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Net income (loss) | $ 21,382 | $ 30,948 | $ 2,127 | $ 91,552 |
Unrealized gain (loss) on securities, net of tax: | ||||
Unrealized gain (loss) on real estate securities, available for sale | 18,439 | 1,389 | (46,282) | 27,414 |
Reclassification adjustment for (gain) loss included in net income (loss) | 302 | (3,398) | 13,139 | (10,639) |
Total other comprehensive income (loss) | 18,741 | (2,009) | (33,143) | 16,775 |
Comprehensive income (loss) | 40,123 | 28,939 | (31,016) | 108,327 |
Comprehensive (income) loss attributable to noncontrolling interest in consolidated joint ventures | (4,149) | (64) | (5,417) | 691 |
Comprehensive income (loss) of combined Class A common shareholders and Operating Partnership unitholders | 35,974 | 28,875 | (36,433) | 109,018 |
Comprehensive (income) loss attributable to noncontrolling interest in operating partnership | (190) | (3,104) | 5,769 | (12,087) |
Common Class A | ||||
Unrealized gain (loss) on securities, net of tax: | ||||
Comprehensive income (loss) attributable to Class A common shareholders | $ 35,784 | $ 25,771 | $ (30,664) | $ 96,931 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Common Class A | Common Class B | Common StockCommon Class A | Common StockCommon Class B | Additional Paid-in Capital | Treasury Stock | Retained Earnings | Retained EarningsCumulative Effect, Period of Adoption, Adjustment | AOCI Attributable to Parent | Noncontrolling Interest in Operating Partnership | Noncontrolling Interest in Consolidated Joint Ventures | |
Beginning Balance (in shares) at Dec. 31, 2018 | 103,941,000 | 13,118,000 | ||||||||||||
Beginning Balance at Dec. 31, 2018 | $ 1,643,635 | $ 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 | ||||||||||||
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) | ||||||||||||
Grants of restricted stock (in shares) | 1,478,000 | |||||||||||||
Grants of restricted stock | $ 1 | (1) | ||||||||||||
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 | |||||||||||
Exchange of noncontrolling interest for common stock (in shares) | 1,140,000 | (1,140,000) | 1,140,000 | (1,140,000) | ||||||||||
Exchange of noncontrolling interest for common stock | 404 | $ 1 | $ (1) | 16,449 | 64 | (16,109) | ||||||||
Stock dividends (in shares) | 1,434,000 | 181,000 | ||||||||||||
Stock dividends | $ 1 | 23,822 | (23,823) | |||||||||||
Ending Balance (in shares) at Sep. 30, 2019 | 107,574,000 | 12,159,000 | ||||||||||||
Ending Balance at Sep. 30, 2019 | 1,639,250 | $ 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) | 0 | 445 | |||||||||||
Ending Balance (in shares) at Sep. 30, 2019 | 107,574,000 | 12,159,000 | ||||||||||||
Ending Balance at Sep. 30, 2019 | 1,639,250 | $ 108 | $ 12 | 1,529,599 | (41,556) | (39,860) | 10,367 | 171,731 | 8,849 | |||||
Beginning Balance (in shares) at Dec. 31, 2019 | 107,509,000 | 12,160,000 | ||||||||||||
Beginning Balance at Dec. 31, 2019 | 1,638,977 | [1] | $ (5,797) | $ 108 | $ 12 | 1,532,384 | (42,699) | (35,746) | $ (5,797) | 4,218 | 172,054 | 8,646 | ||
Increase Decrease in Stockholders' Equity | ||||||||||||||
Contributions | 860 | 860 | ||||||||||||
Distributions | (16,296) | (6,664) | (9,632) | |||||||||||
Amortization of equity based compensation | 20,957 | 20,957 | ||||||||||||
Issuance of Purchase Right | 8,425 | 8,425 | ||||||||||||
Purchase of treasury stock (in shares) | (334,000) | |||||||||||||
Purchase of treasury stock | (2,583) | (2,583) | ||||||||||||
Re-issuance of treasury stock (in shares) | 1,466,000 | |||||||||||||
Re-issuance of treasury stock | $ 1 | (1) | ||||||||||||
Shares acquired to satisfy minimum required federal and state tax withholding on vesting restricted stock and units (in shares) | (509,000) | |||||||||||||
Shares acquired to satisfy minimum required federal and state tax withholding on vesting restricted stock and units | (9,262) | $ (1) | (9,261) | |||||||||||
Forfeitures (in shares) | (24,000) | |||||||||||||
Dividends declared | (82,693) | (82,693) | ||||||||||||
Net income (loss) | 2,127 | (2,729) | (561) | 5,417 | ||||||||||
Other comprehensive income (loss) | (33,143) | (27,935) | (5,208) | |||||||||||
Rebalancing of ownership percentage between Company and Operating Partnership | (1,214) | 2,222 | (1,008) | |||||||||||
Exchange of noncontrolling interest for common stock (in shares) | 12,160,000 | (12,160,000) | ||||||||||||
Exchange of noncontrolling interest for common stock | 222 | $ 12 | $ (12) | 165,788 | (6,953) | (158,613) | ||||||||
Ending Balance (in shares) at Sep. 30, 2020 | 120,268,000 | 0 | ||||||||||||
Ending Balance at Sep. 30, 2020 | $ 1,521,794 | [1] | $ 120 | $ 0 | 1,726,339 | (54,543) | (126,965) | (28,448) | 0 | 5,291 | ||||
Increase Decrease in Stockholders' Equity | ||||||||||||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201613Member | |||||||||||||
Beginning Balance (in shares) at Jun. 30, 2020 | 115,015,000 | 5,381,000 | ||||||||||||
Beginning Balance at Jun. 30, 2020 | $ 1,508,380 | $ 116 | $ 5 | 1,649,170 | (53,619) | (120,082) | (45,080) | 70,968 | 6,902 | |||||
Increase Decrease in Stockholders' Equity | ||||||||||||||
Contributions | 208 | 208 | ||||||||||||
Distributions | (6,300) | (332) | (5,968) | |||||||||||
Amortization of equity based compensation | 4,219 | 4,219 | ||||||||||||
Purchase of treasury stock (in shares) | (124,000) | |||||||||||||
Purchase of treasury stock | (895) | (895) | ||||||||||||
Shares acquired to satisfy minimum required federal and state tax withholding on vesting restricted stock and units (in shares) | (4,000) | |||||||||||||
Shares acquired to satisfy minimum required federal and state tax withholding on vesting restricted stock and units | (29) | (29) | ||||||||||||
Dividends declared | (24,071) | (24,071) | ||||||||||||
Net income (loss) | 21,382 | 17,188 | 45 | 4,149 | ||||||||||
Other comprehensive income (loss) | 18,741 | 18,595 | 146 | |||||||||||
Rebalancing of ownership percentage between Company and Operating Partnership | 0 | (297) | 74 | 223 | ||||||||||
Exchange of noncontrolling interest for common stock (in shares) | 5,381,000 | (5,381,000) | ||||||||||||
Exchange of noncontrolling interest for common stock | $ 4 | $ (5) | 73,247 | (2,037) | (71,050) | |||||||||
Ending Balance (in shares) at Sep. 30, 2020 | 120,268,000 | 0 | ||||||||||||
Ending Balance at Sep. 30, 2020 | $ 1,521,794 | [1] | $ 120 | $ 0 | $ 1,726,339 | $ (54,543) | $ (126,965) | $ (28,448) | $ 0 | $ 5,291 | ||||
[1] | Includes amounts relating to consolidated variable interest entities. See Note 1 and Note 10. |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 2,127,000 | $ 91,552,000 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
(Gain) loss on extinguishment/defeasance of debt | (22,244,000) | 1,070,000 |
Depreciation and amortization | 29,642,000 | 29,192,000 |
Unrealized (gain) loss on derivative instruments | 119,000 | (889,000) |
Unrealized (gain) loss on equity securities | 132,000 | (1,341,000) |
Unrealized (gain) loss on Agency interest-only securities | (183,000) | (38,000) |
Provision for (release of) loan loss reserves | 23,340,000 | 600,000 |
Impairment of real estate | 0 | 1,350,000 |
Amortization of equity based compensation | 20,957,000 | 18,336,000 |
Amortization of deferred financing costs included in interest expense | 13,451,000 | 8,460,000 |
Amortization of premium on mortgage loan financing | (866,000) | (1,300,000) |
Amortization of above- and below-market lease intangibles | (1,720,000) | (867,000) |
Amortization of premium/(accretion) of discount and other fees on loans | (12,467,000) | (14,405,000) |
Amortization of premium/(accretion) of discount and other fees on securities | 472,000 | 82,000 |
Realized (gain) loss on sale of mortgage loan receivables held for sale | (8,052,000) | (38,589,000) |
Realized (gain) loss on sale of mortgage loan receivables held for investment | 6,665,000 | 0 |
Realized (gain) loss on disposition of loan | 51,000 | 0 |
Realized (gain) loss on securities | 12,815,000 | (10,726,000) |
Realized (gain) loss on sale of real estate, net | (32,116,000) | (963,000) |
Realized gain on sale of derivative instruments | (211,000) | 84,000 |
Origination of mortgage loan receivables held for sale | (212,845,000) | (554,115,000) |
Repayment of mortgage loan receivables held for sale | 369,000 | 492,000 |
Proceeds from sales of mortgage loan receivables held for sale | 312,300,000 | 574,303,000 |
(Income) loss from investments in unconsolidated joint ventures in excess of distributions received | (1,359,000) | (3,617,000) |
Distributions from operations of investment in unconsolidated joint ventures | 0 | 3,067,000 |
Deferred tax asset (liability) | 6,822,000 | 7,405,000 |
Changes in operating assets and liabilities: | ||
Accrued interest receivable | 2,807,000 | 4,275,000 |
Other assets | (12,503,000) | (5,921,000) |
Accrued expenses and other liabilities | (39,399,000) | (33,010,000) |
Net cash provided by (used in) operating activities | 88,009,000 | 64,245,000 |
Cash flows from investing activities: | ||
Origination of mortgage loan receivables held for investment | (343,216,000) | (985,825,000) |
Repayment of mortgage loan receivables held for investment | 568,151,000 | 1,191,908,000 |
Proceeds from sale of mortgage loan receivables held for investment, at amortized cost | 172,412,000 | 0 |
Purchases of real estate securities | (439,584,000) | (1,192,852,000) |
Repayment of real estate securities | 105,446,000 | 178,468,000 |
Basis recovery of Agency interest-only securities | 5,976,000 | 9,339,000 |
Proceeds from sales of real estate securities | 566,452,000 | 534,249,000 |
Purchases of real estate | (6,239,000) | (13,905,000) |
Capital improvements of real estate | (2,489,000) | (3,606,000) |
Proceeds from sale of real estate | 62,596,000 | 10,794,000 |
Capital contributions and advances to investment in unconsolidated joint ventures | 0 | (56,393,000) |
Capital distribution from investment in unconsolidated joint ventures | 636,000 | 46,019,000 |
Capitalization of interest on investment in unconsolidated joint ventures | 0 | (142,000) |
Purchase of FHLB stock | 0 | (3,704,000) |
Purchase of derivative instruments | (110,000) | (210,000) |
Sale of derivative instruments | 447,000 | 101,000 |
Net cash provided by (used in) investing activities | 690,478,000 | (285,759,000) |
Cash flows from financing activities: | ||
Securities and derivatives purchased, not settled | 0 | 7,000,000 |
Securities and derivatives sold, not settled | 21,000 | 3,962,000 |
Deferred financing costs paid | (17,515,000) | (4,453,000) |
Proceeds from borrowings under debt obligations | 9,132,914,000 | 10,186,669,000 |
Repayment of borrowings under debt obligations | (9,217,889,000) | (9,771,014,000) |
Cash dividends paid to Class A common shareholders | (95,152,000) | (144,306,000) |
Payment of liability assumed in exchange for shares for the minimum withholding taxes on vesting restricted stock | (9,261,000) | (8,106,000) |
Purchase of treasury stock | (2,583,000) | (637,000) |
Issuance of purchase right | 8,425,000 | 0 |
Net cash provided by (used in) financing activities | (216,497,000) | 244,817,000 |
Net increase (decrease) in cash, cash equivalents and restricted cash | 561,990,000 | 23,303,000 |
Cash, cash equivalents and restricted cash at beginning of period | 355,746,000 | 98,450,000 |
Cash, cash equivalents and restricted cash at end of period | 917,736,000 | 121,753,000 |
Supplemental information: | ||
Cash paid for interest, net of amounts capitalized | 164,722,000 | 164,429,000 |
Cash paid (received) for income taxes | 3,044,000 | 4,817,000 |
Non-cash investing and financing activities: | ||
Repayment in transit of mortgage loans receivable held for investment (other assets) | 107,652,000 | 6,120,000 |
Repayment of mortgage loans receivable held for sale | 0 | 128,000 |
Settlement of mortgage loan receivable held for investment by real estate, net | (25,177,000) | (17,851,000) |
Transfer from mortgage loans receivable held for sale to mortgage loans receivable held for investment, net, at amortized cost | 0 | 35,940,000 |
Real estate acquired in settlement of mortgage loan receivable held for investment, net | 25,435,000 | 17,851,000 |
Net settlement of sale of real estate, subject to debt - real estate | (31,768,000) | (11,943,000) |
Net settlement of sale of real estate, subject to debt - debt obligations | 31,768,000 | 11,943,000 |
Exchange of noncontrolling interest for common stock | 158,625,000 | 16,110,000 |
Change in deferred tax asset related to exchanges of noncontrolling interest for common stock | 223,000 | 0 |
Increase in amount payable pursuant to tax receivable agreement | 0 | (11,000) |
Rebalancing of ownership percentage between Company and Operating Partnership | (1,008,000) | 147,000 |
Dividends declared, not paid | 26,236,000 | 2,384,000 |
Stock dividends | 0 | 23,824,000 |
Total cash, cash equivalents and restricted cash shown in the consolidated statement of cash flows | 355,746,000 | 121,753,000 |
Consolidated Joint Venture | ||
Cash flows from financing activities: | ||
Capital contributed by noncontrolling interests in consolidated joint ventures | 860,000 | 498,000 |
Capital distributed to noncontrolling interests | (9,632,000) | (1,013,000) |
Operating Partnership | ||
Cash flows from financing activities: | ||
Capital distributed to noncontrolling interests | (6,664,000) | (12,821,000) |
Equity Securities | ||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Unrealized (gain) loss on equity securities | 132,000 | (1,341,000) |
Mutual Fund | ||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Unrealized (gain) loss on equity securities | $ (95,000) | $ (308,000) |
ORGANIZATION AND OPERATIONS
ORGANIZATION AND OPERATIONS | 9 Months Ended |
Sep. 30, 2020 | |
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, 2020, Ladder Capital Corp has a 100.0% 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. 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 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, and subject to the applicable minimum retained ownership requirements and certain other restrictions, including notice requirements, limited partners of LCFH prior to Ladder Capital Corp’s initial public offering (“IPO”) who hold an economic interest in LCFH and voting shares of Ladder Capital Corp Class B common stock (the “Continuing LCFH Limited Partners”) (or certain transferees thereof) may, 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 of September 30, 2020, all shares of Class B common stock had been exchanged for shares of Class A common stock and the Company held a 100.0% interest in LCFH. As a result of the Company’s ownership interest in LCFH and LCFH’s election under Section 754 of the Code, the Company historically benefited 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. COVID-19 Impact on the Organization On March 11, 2020, the World Health Organization declared the novel strain of coronavirus (“COVID-19”) a global pandemic and recommended containment and mitigation measures worldwide. As of the date of this filing, the majority of our employees continue to work remotely. We continue to actively manage the liquidity and operations of the Company in light of the market disruption caused by, and the overall financial impact of, the COVID-19 pandemic across most industries in the United States. Due to the uncertainty related to the severity and duration of the pandemic, its ultimate impact on our revenues, profitability and financial position is difficult to assess at this time. Refer to the Notes to the Consolidated Financial Statements for further disclosure on the current and potential impact of the COVID-19 global pandemic on our business. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | 2. SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The Company conducted a more extensive going concern analysis as a result of market conditions at September 30, 2020. As the COVID-19 crisis evolved, management implemented a plan to increase liquidity resources and pay down debt. The Company maintained an unrestricted cash position of $875.8 million as of September 30, 2020 to mitigate uncertainty in liquidity needs in light of market conditions. The Company was in compliance with all financial covenants as of September 30, 2020 (refer to Note 7, Debt Obligations, Net). As of March 31, 2020, partly as a result of maintaining higher levels of cash, the Company was not in compliance with its 3.5x covenant ratio with certain of its lenders; however, the Company cured such non-compliance through pay downs of debt with various counterparties during the cure period. Management has evaluated current market conditions and expects that the Company’s current cash resources, operating cash flows and ability to obtain financing will be sufficient to sustain operations for a period greater than one year from the issuance date of this Quarterly Report. During the three months ended June 30, 2020, the Company incurred $2.1 million of professional fees, included in operating expenses, and $0.2 million of severance costs, included in salaries and employee benefits, due to measures implemented in direct response to the COVID-19 pandemic. 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, 2019, which are included in the 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 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. Provision for Loan Losses The provision for loan losses reflects the Company’s estimate of loan losses inherent in the loan portfolio as of the balance sheet date. The provision for loan losses includes a portfolio-based, current expected credit loss (“CECL”) component and an asset-specific component. In compliance with the new CECL reporting requirements, the Company has supplemented the existing credit monitoring and management processes with additional processes to support the calculation of the CECL reserves. As part of that effort, the Company has engaged a third-party service provider to provide market data and a credit loss model. The credit loss model is a forward-looking, econometric, commercial real estate (“CRE”) loss forecasting tool. It is comprised of a probability of default (“PD”) model and a loss given default (“LGD”) model that, layered together with user’s loan-level data, selected forward-looking macroeconomic variables, and pool-level mean loss rates, produces life of loan expected losses (“EL”) at the loan and portfolio level. The asset-specific reserve component relates to reserves for losses on individually impaired loans. The Company evaluates each loan for impairment at least quarterly. Impairment occurs when it is deemed probable that the Company will not be able to collect all amounts due according to the contractual terms of the loan. If the loan is considered to be impaired, an allowance is recorded to reduce the carrying value of the loan to the present value of the expected future cash flows discounted at the loan’s effective rate or the fair value of the collateral, less the estimated costs to sell, if recovery of the Company’s investment is expected solely from the collateral. The Company generally will use the direct capitalization rate valuation methodology or the sales comparison approach to estimate the fair value of the collateral for such loans and in certain cases will obtain external appraisals. Determining fair value of the collateral may take into account a number of assumptions including, but not limited to, cash flow projections, market capitalization rates, discount rates and data regarding recent comparable sales of similar properties. Such assumptions are generally based on current market conditions and are subject to economic and market uncertainties. The Company’s 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/sponsor on a loan-by-loan basis. 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 submarket in which the collateral property is located. Such impairment analyses are completed and reviewed by asset management and underwriting 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 and ultimately presented to management for approval. A loan is also considered impaired if its terms are modified in a troubled debt restructuring (“TDR”). A TDR occurs when a concession is granted and the debtor is experiencing financial difficulties. Impairments on TDR loans are generally measured based on the present value of expected future cash flows discounted at the effective interest rate of the original loans. 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 interests 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 the CECL reserve. 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. The Company designates non-accrual loans at such time as (i) loan payments become 90-days past due or (ii) in the opinion of the Company, it is probable the Company will be unable to collect all amounts due according to the contractual terms of the loan. Income recognition will be suspended when a loan is designated non-accrual and resumed only when the suspended loan becomes contractually current and performance is demonstrated to have resumed. Any interest received for loans on non-accrual status will be applied as a reduction to the unpaid principal balance. A loan will be written off when it is no longer realizable and legally discharged. Recently Adopted Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-13 Financial Instruments - Credit Losses - Measurement of Credit Losses on Financial Instruments (Topic 326) (“ASU 2016-13”) and 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”), collectively, the “CECL Standard.” These updates change how entities measure potential credit losses for most financial assets and certain other instruments that are not measured at fair value. The CECL Standard replaced the “incurred loss” approach under previous guidance with an “expected loss” model for instruments measured at amortized cost. The net carrying value of an asset under the CECL Standard is intended to represent the amount expected to be collected on such asset and requires entities to deduct allowances for potential losses on mortgage loan receivables held for investment, net and held-to-maturity debt securities. The Company will continue to record asset-specific reserves consistent with our existing accounting policy. In addition, the Company will now record a general reserve in accordance with the CECL Standard on the remainder of the loan portfolio (“CECL Reserve”). At adoption, on January 1, 2020, the Company recorded a CECL Reserve of $11.6 million, which equated to 0.36% of $3.2 billion carrying value of its held for investment loan portfolio. This reserve excluded three loans that previously had an aggregate of $14.7 million of asset-specific reserves and a carrying value of $39.8 million as of January 1, 2020. Upon adoption, the aggregated CECL Reserve reduced total shareholder’s equity by $5.8 million (or approximately $0.05 of book value per share of common stock). 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. The adoption of ASU 2018-13 had no material impact on the Company’s consolidated financial statements. 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 adoption of ASU 2018-17 had no material impact on the Company’s 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. The adoption of ASU 2019-04 had no material impact on the Company’s consolidated financial statements. In March 2020, the FASB issued ASU 2020-03, Codification Improvements to Financial Instruments, (“ASU 2020-03”). ASU 2020-03 improves various financial instruments topics, including the CECL Standard. ASU 2020-03 includes seven different issues that describe the areas of improvement and the related amendments to GAAP, intended to make the standards easier to understand and apply by eliminating inconsistencies and providing clarifications. The amendments related to Issue 1, Issue 2, Issue 4 and Issue 5 were effective upon issuance of ASU 2020-03. The amendments related to Issue 3, Issue 6 and Issue 7 were effective for the Company beginning on January 1, 2020. The adoption of ASU 2020-03 had no material impact on the Company’s consolidated financial statements. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, (“ASU 2020-04”). ASU 2020-04 provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions that reference the London Interbank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued because of reference rate reform. ASU 2020-04 is effective upon issuance of ASU 2020-04 for contract modifications and hedging relationships on a prospective basis. While the Company is currently assessing the impact of ASU 2020-04, the Company does not expect the adoption to have a material impact on its consolidated financial statements. Recent Accounting Pronouncements Pending Adoption In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 815), (“ASU 2019-12”). ASU 2019-12 simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. ASU 2019-12 also improves the consistent application of, and simplifies, GAAP for other areas of Topic 740 by clarifying and amending existing guidance. The standard is effective for all entities for financial statements issued for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. Early adoption is permitted. The Company does not expect the adoption of ASU 2019-12 to have a material impact on its consolidated financial statements. In October 2020, the FASB issued ASU 2020-08, Codification Improvements to Subtopic 310-20, Receivables–Nonrefundable Fees and Other Costs, (“ASU 2020-08”) . This ASU clarifies that an entity should reevaluate whether a callable debt security is within the scope of ASC paragraph 310-20-35-33 for each reporting period. The guidance is effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. Early application is not permitted. All entities should apply ASU 2020-08 on a prospective basis as of the beginning of the period of adoption for existing or newly purchased callable debt securities. The Company is assessing ASU 2020-08 and its impact its accounting and disclosures. 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, 2020 | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Abstract] | |
MORTGAGE LOAN RECEIVABLES | 3. MORTGAGE LOAN RECEIVABLES September 30, 2020 ($ in thousands) Outstanding Carrying Weighted Remaining Mortgage loan receivables held for investment, net, at amortized cost: Mortgage loans held by consolidated subsidiaries: First mortgage loans $ 2,622,120 $ 2,608,933 6.59 % 1.03 Mezzanine loans 122,604 122,321 10.90 % 2.65 Total mortgage loans held by consolidated subsidiaries 2,744,724 2,731,254 6.81 % 1.10 Allowance for credit losses N/A (47,084) Total mortgage loan receivables held for investment, net, at amortized cost 2,744,724 2,684,170 Mortgage loan receivables held for sale: First mortgage loans 30,513 30,553 4.05 % 9.43 Total $ 2,775,237 $ 2,714,723 6.99 % 1.22 (1) September 30, 2020 LIBOR rates are used to calculate weighted average yield for floating rate loans. As of September 30, 2020, $2.2 billion, or 81.1%, 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 $2.2 billion, 100% of these variable interest rate mortgage loan receivables were subject to interest rate floors. As of September 30, 2020, $30.5 million, or 100%, of the outstanding face amount of our mortgage loan receivables held for sale were at fixed interest rates. December 31, 2019 ($ in thousands) Outstanding Carrying Weighted Remaining Mortgage loan receivables held for investment, net, at amortized cost: Mortgage loans held by consolidated subsidiaries: First mortgage loans $ 3,147,275 $ 3,127,173 6.77 % 1.35 Mezzanine loans 130,322 129,863 10.97 % 3.26 Total mortgage loans held by consolidated subsidiaries 3,277,597 3,257,036 6.94 % 1.43 Allowance for credit losses N/A (20,500) Total mortgage loan receivables held for investment, net, at amortized cost 3,277,597 3,236,536 Mortgage loan receivables held for sale: First mortgage loans 122,748 122,325 4.20 % 9.99 Total $ 3,400,345 $ 3,358,861 6.88 % 1.75 (1) December 31, 2019 LIBOR rates are used to calculate weighted average yield for floating rate loans. As of December 31, 2019, $2.5 billion, or 77.2%, of the outstanding principal of our mortgage loan receivables held for investment, net, at amortized cost, were at variable interest rates, linked to LIBOR or a replacement index generally determined in our discretion. Of this $2.5 billion, 100% of these variable rate mortgage loan receivables were subject to interest rate floors. As of December 31, 2019, $122.7 million, or 100%, of the carrying value of our mortgage loan receivables held for sale were at fixed interest rates. For the nine months ended September 30, 2020 and 2019, the activity in our loan portfolio was as follows ($ in thousands): Mortgage loan receivables held for investment, net, at amortized cost: Mortgage loans held by consolidated subsidiaries Provision for current expected credit loss Mortgage loan Balance, December 31, 2019 $ 3,257,036 $ (20,500) $ 122,325 Origination of mortgage loan receivables 343,216 — 212,845 Repayment of mortgage loan receivables (675,281) — (369) Proceeds from sales of mortgage loan receivables (172,412) — (312,300) Non-cash disposition of loans via foreclosure(1) (27,107) — — Sale of loans, net (6,665) — 8,052 Accretion/amortization of discount, premium and other fees 12,467 — — Release of asset-specific loan loss provision via foreclosure(1) — 2,000 — Provision for current expected credit loss (implementation impact)(2) — (4,964) — Provision for current expected credit loss, net (impact to earnings)(2) — (15,620) — Asset-specific provision for loan loss reserve — (8,000) — Balance, September 30, 2020 $ 2,731,254 $ (47,084) $ 30,553 (1) Refer to Note 5 Real Estate and Related Lease Intangibles, Net for further detail on foreclosure of real estate. (2) During the nine months ended September 30, 2020, the initial impact of the implementation of the CECL accounting standard as of January 1, 2020 is recorded against retained earnings. Subsequent remeasurement thereafter, including the period to date change for the nine months ended September 30, 2020, is accounted for as provision for current expected credit loss in the consolidated statements of income. 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 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 loan 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/(release of) loan loss reserves — — (600) — Balance, September 30, 2019 $ 3,231,443 $ — $ (18,500) $ 174,214 (1) We sell certain loans into securitizations; however, for a transfer of financial assets to be considered a sale, the transfer must meet the sale criteria of ASC 860 under which the Company must surrender control over the transferred assets which must qualify as recognized financial assets at the time of transfer. The assets must be isolated from the Company, even in bankruptcy or other receivership, the purchaser must have the right to pledge or sell the assets transferred and the Company may not have an option or obligation to reacquire the assets. If the sale criteria are not met, the transfer is considered to be a secured borrowing, the assets remain on the Company’s consolidated balance sheets and the sale proceeds are recognized as a liability. During the three months ended March 31, 2019, the Company reclassified from mortgage loan receivables held for sale to mortgage loans transferred but not considered sold, 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. Subsequent to March 31, 2019, 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 nine months ended September 30, 2019. (2) Refer to Note 5, Real Estate and Related Lease Intangibles, Net for further detail on real estate acquired via foreclosure. During the three and nine months ended September 30, 2020, the transfers of financial assets via sales of loans were treated as sales under ASC Topic 860 — Transfers and Servicing . During the three and nine months ended September 30, 2019, the transfers of financial assets via sales of loans were treated as sales under ASC Topic 860 — Transfers and Servicing , except for the one loan discussed above. As of September 30, 2020 and December 31, 2019, there was $0.4 million of unamortized discounts included in our mortgage loan receivables held for investment, net, at amortized cost, on our consolidated balance sheets. Allowance for Credit Losses and Non-Accrual Status ($ in thousands) Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Allowance for credit losses at beginning of period $ 49,102 $ 18,500 $ 20,500 $ 17,900 Provision for current expected credit loss (implementation impact) — — 4,964 — Provision for current expected credit loss, net (impact to earnings) (2,018) — 15,620 600 Additional asset-specific reserve — — 8,000 — Foreclosure of loans subject to asset-specific reserve — — (2,000) — Allowance for credit losses at end of period $ 47,084 $ 18,500 $ 47,084 $ 18,500 September 30, 2020 December 31, 2019 Carrying value of loans on non-accrual status, net of asset-specific reserve $ 201,517 (1) $ 86,025 (2) (1) Represents two of the Company’s loans, which were originated simultaneously as part of a single transaction and had a combined carrying value of $24.2 million, two loans with a combined carrying value of $27.8 million, one loan with a carrying value of $61.5 million, one loan with a carrying value of $3.6 million, one loan with a carrying value of $44.9 million and one loan with a carrying value of $39.5 million as further discussed below. (2) Represents two of the Company’s loans, which were originated simultaneously as part of a single transaction and had a combined carrying value of $24.2 million, one loan with a carrying value of $0.4 million and one loan with a carrying value of $61.5 million, as further discussed below. Current Expected Credit Loss (“CECL”) In compliance with the new CECL reporting requirements, the Company has supplemented the existing credit monitoring and management processes with additional processes to support the calculation of the CECL reserves. Based on the Company’s process, at adoption, on January 1, 2020, the Company recorded a CECL Reserve of $11.6 million, which equated to 0.36% of $3.2 billion carrying value of its held for investment loan portfolio. This reserve excluded three loans that previously had an aggregate of $14.7 million of asset-specific reserves and a carrying value of $39.8 million as of January 1, 2020. Upon adoption, the aggregated CECL Reserve reduced total shareholder’s equity by $5.8 million (or approximately $0.05 of book value per share of common stock). As of September 30, 2020, the Company has a $47.6 million allowance for credit losses. This includes five loans that previously had an aggregate of $20.7 million of asset-specific reserves and a carrying value of $76.3 million as of September 30, 2020. The change of $(2.5) million in the three months ended September 30, 2020 is reflected as a decrease to provision for/(release of) loan loss reserves of $(2.0) million, and a decrease in reserve on unfunded commitments of $(0.5) million. These decreases are primarily due to the decrease in the size of our loan portfolio, partially offset by an update of the macro economic assumptions used in the Company’s CECL evaluation in the current quarter. The change of $15.3 million in the nine months ended September 30, 2020 is reflected as an increase of reserve to provision of $15.6 million, and a decrease in reserve on unfunded commitments of $(0.3) million. These increases/decreases are primarily due to the update of the macro economic assumptions used in the Company’s CECL evaluation to reflect a recessionary macro economic scenario due to current market conditions instead of the more stable “Baseline” scenario from the Federal Reserve that was utilized in the January 1, 2020 CECL reserve analysis, partially offset by a decrease in unfunded commitments. In addition to the CECL reserve, the Company determined that an asset-specific reserve of $8.0 million was required relating to two of the Company’s loans for the nine months ended September 30, 2020. The Company has concluded that none of its loans, other than the four loans discussed below, are individually impaired as of September 30, 2020. Loan Portfolio by Geographic Region, Property Type and Vintage ($ in thousands) Amortized Cost Geographic Region Northeast $ 779,956 Southwest 575,969 South 485,643 Midwest 469,497 West 343,909 Subtotal loans 2,654,974 Individually impaired loans(1) 76,280 Total loans $ 2,731,254 Management’s method for monitoring credit is the performance of a loan. A loan is impaired or not impaired based on the expectation that all amounts contractually due under a loan will be collected when due. The primary credit quality indicator management utilizes to assess its current expected credit loss reserve is by viewing Ladder’s loan portfolio by collateral type. The following table summarizes the assessed amortized cost of the loan portfolio by property type ($ in thousands). Vintage Property Type 2020 2019 2018 2017 2016 and Earlier Total Multifamily $ 65,380 $ 299,648 $ 66,006 $ 24,562 $ — $ 455,596 Office — 67,317 137,530 67,378 123,639 395,864 Hospitality 52,971 203,285 389,172 150,585 51,935 847,948 Mixed Use 52,572 101,571 — 14,367 — 168,510 Retail — 134,826 19,786 — 65,784 220,396 Other 52,030 131,087 79,813 — — 262,930 Industrial 52,046 116,579 — — 6,470 175,095 Manufactured Housing 4,549 57,261 11,710 — 3,966 77,486 Self-Storage — 35,960 15,189 — — 51,149 Subtotal loans 279,548 1,147,534 719,206 256,892 251,794 2,654,974 Individually Impaired loans (1) — — 4,143 — 72,137 76,280 Total loans $ 279,548 $ 1,147,534 $ 723,349 $ 256,892 $ 323,931 $ 2,731,254 (1) Included in individually impaired loans are two loans, which were originated in 2016 simultaneously as part of a single transaction with a combined amortized cost of $26.9 million, collateralized by a mixed use property located in the Northeast region, one loan, which was originated in 2016 and subsequently restructured into two loans in 2018, with a combined amortized cost of $45.3 million, collateralized by a mixed use property located in the Northeast region, and one loan, originated in 2018, with a amortized cost of $4.1 million, collateralized by a hotel located in the Midwest region. The above individually impaired loans’ amortized cost basis excludes asset-specific provisions totaling $20.7 million. Individually Impaired Loans As of September 30, 2020, two of the Company’s loans, collateralized by a mixed use property, 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. 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. During the three months ended March 31, 2018, management believed these loans to be 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 an asset-specific provision for loss on one of these loans, with a carrying value of $5.9 million, 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, 2020, 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, secured by a mixed-use office and hospitality property, with a carrying value of $45.0 million as 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. A reserve of $10.0 million was recorded for this 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 reserve of $10.0 million was applied to the B-Note and the B-Note was placed on non-accrual status on October 17, 2018. During the quarter ended March 31, 2020, management identified that the A-Note was impaired, reflecting a decline in collateral value due to: (i) new information available during the three months ended March 31, 2020 regarding two recent non-distressed sales of office buildings in the Wilmington, DE central business district; (ii) a change in market conditions driven by COVID-19 as capital flow to the tertiary markets shifted given increased opportunities in primary markets; and (iii) the closure of the corporate housing component of the property. As a result, on March 31, 2020, the Company recorded an asset-specific provision for loss on the A-Note of $7.5 million to reduce the carrying value of this loan to the fair value of the property less the cost to foreclose and sell the property utilizing direct capitalization rates of 7.50% to 8.60%. The Company placed the A-Note on non-accrual status as of March 31, 2020. As of September 30, 2020, the combined carrying value of the A-Note and the B-Note was $45.3 million. As of September 30, 2020, one of the Company’s loans, collateralized by a hotel property, with a carrying value of $4.1 million, was in default. The Company placed this loan on non-accrual status in March 2020. The Company filed for foreclosure in December 2019 and did not believe there was an impairment at that time. In assessing this collateral-dependent loan for impairment, the most significant consideration is the fair value of the underlying real estate collateral. During the quarter ended March 31, 2020, management identified that the loan was impaired, reflecting a decline in collateral value due to indications of value from market participants with knowledge of the asset and the temporary closure of the nearby university and local businesses due to COVID-19. As a result, on March 31, 2020, the Company recorded an asset-specific provision for loss of $0.5 million to reduce the carrying value of this loan to the fair value of the property less the cost to foreclose and sell the property. As of September 30, 2020, the Company believed no additional loss provision was necessary based on the current value of the underlying collateral. As of September 30, 2020, there were no unfunded commitments associated with modified loans considered TDRs. These non-recurring fair values are considered Level 3 measurements in the fair value hierarchy. Loans on Non-Accrual Status During the three months ended December 31, 2019, one of the Company’s loans, which had a carrying value of $61.5 million, was placed on non-accrual status. The Company performed a review of the loan collateral. The review consisted of conversations with market participants familiar with the property location as well as reviewing market data and comparables. Based on this review, the Company determined that no asset-specific impairment was required for this loan. The Company will continue to monitor for impairment. During the three months ended June 30, 2020, one of the Company’s loans, which had a carrying value of $39.5 million, was placed on non-accrual status. The Company performed a review of the loan collateral. The review consisted of conversations with market participants familiar with the property location as well as reviewing market data and comparables. Based on this review, the Company determined that no asset-specific impairment was required for this loan. The Company will continue to monitor for impairment. During the three months ended September 30, 2020, one of the Company’s loans, which had a carrying value of $44.9 million, was placed on non-accrual status. The Company performed a review of the loan collateral. The review consisted of conversations with market participants familiar with the property location as well as reviewing market data and comparables. Based on this review, the Company determined that no asset-specific impairment was required for this loan. The Company will continue to monitor for impairment. There are no other loans on non-accrual status other than those discussed in Individually Impaired Loans and Loans on Non-Accrual Status above as of September 30, 2020. |
REAL ESTATE SECURITIES
REAL ESTATE SECURITIES | 9 Months Ended |
Sep. 30, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
REAL ESTATE SECURITIES | 4. REAL ESTATE SECURITIES The Company invests in primarily AAA-rated real estate securities, typically front pay securities, with relatively short duration and significant subordination. The hyperamortization features included in many of the securities positions we own help mitigate potential credit losses even in the current market conditions. At the onset of the COVID-19 pandemic in March 2020, there was a significant decrease in liquidity and trading activity for the real estate securities we own. During the three months ended September 30, 2020, liquidity and trading activity continued to return to the market and the value of our securities portfolio as of September 30, 2020 had an unrealized mark-to-market gain of $18.4 million. As of September 30, 2020 there was an unrealized mark-to-market loss of $45.2 million related to the nine months ended September 30, 2020. CMBS, CMBS interest-only securities, Agency securities, Government National Mortgage Association (“GNMA”) construction securities, GNMA permanent securities and corporate bonds are classified as available-for-sale and reported at fair value with changes in fair value recorded in the current period in other comprehensive income. GNMA and Federal Home Loan Mortgage Corp (“FHLMC”) securities (collectively, “Agency interest-only securities”) are recorded at fair value with changes in fair value recorded in current period earnings. Equity securities are reported at fair value with changes in fair value recorded in current period earnings. The following is a summary of the Company’s securities at September 30, 2020 and December 31, 2019 ($ in thousands): September 30, 2020 Gross Unrealized Weighted Average Asset Type Outstanding Amortized Cost Basis/Purchase Price Gains Losses Carrying # of Rating (1) Coupon % Yield % Remaining CMBS(2) $ 1,420,752 $ 1,420,537 $ 1,018 $ (30,993) $ 1,390,562 (3) 102 AAA 1.49 % 1.54 % 2.10 CMBS interest-only(2)(4) 1,506,152 23,063 723 (45) 23,741 (5) 13 AAA 0.44 % 3.32 % 2.28 GNMA interest-only(4)(6) 87,917 1,175 216 (163) 1,228 11 AA+ 0.44 % 3.90 % 3.27 Agency securities(2) 595 603 16 — 619 2 AA+ 2.57 % 1.66 % 1.40 GNMA permanent securities(2) 30,542 30,662 832 — 31,494 6 AA+ 3.88 % 3.49 % 2.20 Total debt securities $ 3,045,958 $ 1,476,040 $ 2,805 $ (31,201) $ 1,447,644 134 0.96 % 1.62 % 2.11 Provision for current expected credit losses N/A — — (19) (19) Total real estate securities $ 3,045,958 $ 1,476,040 $ 2,805 $ (31,220) $ 1,447,625 134 (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 $11.1 million of restricted securities which are designated as risk retention securities under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, (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 $0.7 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, 2019 Gross Unrealized Weighted Average Asset Type Outstanding Amortized Gains Losses Carrying # of Rating (1) Coupon % Yield % Remaining CMBS(2) $ 1,640,597 $ 1,640,905 $ 4,337 $ (920) $ 1,644,322 (3) 125 AAA 3.06 % 3.08 % 2.41 CMBS interest-only(2)(4) 1,559,160 28,553 630 (37) 29,146 (5) 15 AAA 0.60 % 3.04 % 2.53 GNMA interest-only(4)(6) 109,783 1,982 123 (254) 1,851 11 AA+ 0.49 % 4.59 % 2.77 Agency securities(2) 629 640 1 (4) 637 2 AA+ 2.65 % 1.73 % 1.83 GNMA permanent securities(2) 31,461 31,681 688 — 32,369 6 AA+ 3.91 % 3.17 % 1.93 Total debt securities $ 3,341,630 $ 1,703,761 $ 5,779 $ (1,215) $ 1,708,325 159 1.84 % 3.06 % 2.39 Equity securities(7) N/A 12,848 292 (160) 12,980 2 N/A N/A N/A N/A Total real estate securities $ 3,341,630 $ 1,716,609 $ 6,071 $ (1,375) $ 1,721,305 161 (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 $0.8 million of restricted securities which are designated as risk retention securities under the Dodd-Frank Act and are therefore subject to transfer restrictions over the term of the securitization trust and are classified as held-to-maturity and reported at amortized cost. (6) Agency interest-only securities are recorded at fair value with changes in fair value recorded in current period earnings. The Company’s Agency interest-only securities are considered to be hybrid financial instruments that contain embedded derivatives. As a result, the Company accounts for them as hybrid instruments in their entirety at fair value with changes in fair value recognized in unrealized gain (loss) on Agency interest-only securities in the consolidated statements of income in accordance with ASC 815. (7) The Company has elected to account for equity securities at fair value with changes in fair value recorded in current period earnings. The following is a breakdown of the carrying value of the Company’s debt securities by remaining maturity based upon expected cash flows at September 30, 2020 and December 31, 2019 ($ in thousands): September 30, 2020 Asset Type Within 1 year 1-5 years 5-10 years After 10 years Total CMBS $ 289,889 $ 1,052,832 $ 47,841 $ — $ 1,390,562 CMBS interest-only 1,889 21,852 — — 23,741 GNMA interest-only 64 886 278 — 1,228 Agency securities — 619 — — 619 GNMA permanent securities 137 31,357 — — 31,494 Total debt securities $ 291,979 $ 1,107,546 $ 48,119 $ — $ 1,447,644 December 31, 2019 Asset Type Within 1 year 1-5 years 5-10 years After 10 years Total CMBS $ 177,193 $ 1,389,392 $ 77,737 $ — $ 1,644,322 CMBS interest-only 1,439 27,707 — — 29,146 GNMA interest-only 91 1,504 256 — 1,851 Agency securities — 637 — — 637 GNMA permanent securities 416 31,953 — — 32,369 Total debt securities $ 179,139 $ 1,451,193 $ 77,993 $ — $ 1,708,325 During the three and nine months ended September 30, 2020, the Company realized a gain (loss) on the sale of equity securities of zero and $1.1 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, 2019, the Company realized a gain (loss) on the sale of equity securities of zero and $0.1 million, respectively, which is included in realized gain (loss) on securities on the Company’s consolidated statements of income. |
REAL ESTATE AND RELATED LEASE I
REAL ESTATE AND RELATED LEASE INTANGIBLES, NET | 9 Months Ended |
Sep. 30, 2020 | |
Real Estate [Abstract] | |
REAL ESTATE AND RELATED LEASE INTANGIBLES, NET | 5. REAL ESTATE AND RELATED LEASE INTANGIBLES, NET The market conditions due to the COVID-19 pandemic and the resulting economic disruption have broadly impacted the commercial real estate sector. As expected, the net leased commercial real estate properties, which comprise the majority of our portfolio, have remained minimally impacted as the majority of the net leased properties in our real estate portfolio are necessity-based businesses and have remained open and stable during the COVID-19 pandemic. We continue to actively monitor the diversified commercial real estate properties for both the immediate and long term impact of the pandemic on the buildings, the tenants, the business plans and the ability to execute those business plans. The following tables present additional detail related to our real estate portfolio, net, including foreclosed properties ($ in thousands): September 30, 2020 December 31, 2019 Land $ 220,465 $ 209,955 Building 834,630 883,005 In-place leases and other intangibles 157,011 161,203 Less: Accumulated depreciation and amortization (221,523) (206,082) Real estate and related lease intangibles, net $ 990,583 $ 1,048,081 Below market lease intangibles, net (other liabilities) $ (37,500) $ (39,067) At September 30, 2020 and December 31, 2019, the Company held foreclosed properties included in real estate and related lease intangibles, net with a carrying value of $107.7 million and $89.5 million, respectively. The following table presents depreciation and amortization expense on real estate recorded by the Company ($ in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Depreciation expense(1) $ 8,138 $ 7,394 $ 24,571 $ 22,776 Amortization expense 1,679 1,612 5,071 6,342 Total real estate depreciation and amortization expense $ 9,817 $ 9,006 $ 29,642 $ 29,118 (1) Depreciation expense on the consolidated statements of income also includes $25 thousand and $74 thousand of depreciation on corporate fixed assets for the three and nine months ended September 30, 2020, respectively. Depreciation expense on the consolidated statements of income also includes $24 thousand and $74 thousand for the three and nine months ended September 30, 2019, respectively. The Company’s intangible assets are comprised of in-place leases, above market leases and other intangibles. The following tables present additional detail related to our intangible assets ($ in thousands): September 30, 2020 December 31, 2019 Gross intangible assets(1) $ 157,010 $ 161,203 Accumulated amortization 64,260 62,773 Net intangible assets $ 92,750 $ 98,430 (1) Includes $4.3 million and $4.5 million of unamortized above market lease intangibles which are included in real estate and related lease intangibles, net on the consolidated balance sheets as of September 30, 2020 and December 31, 2019, respectively. The following table presents increases/reductions in operating lease income recorded by the Company ($ in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Reduction in operating lease income for amortization of above market lease intangibles acquired $ (92) $ (94) $ (275) $ (727) Increase in operating lease income for amortization of below market lease intangibles acquired 624 564 1,995 1,594 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, 2020 ($ in thousands): Period Ending December 31, Adjustment to Operating Lease Income Amortization Expense 2020 (last 3 months) $ 268 $ 1,491 2021 1,070 5,504 2022 1,070 5,504 2023 1,070 5,504 2024 1,070 5,504 Thereafter 28,692 64,932 Total $ 33,240 $ 88,439 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 $0.4 million and $0.9 million of rent receivables included in other assets on the consolidated balance sheets as of September 30, 2020 and December 31, 2019, respectively. There was unencumbered real estate of $71.3 million and $59.2 million as of September 30, 2020 and December 31, 2019, respectively. During the three and nine months ended September 30, 2020, the Company recorded $2.0 million and $4.5 million, respectively, of real estate operating income, which is included in operating lease income in the consolidated statements of income. During the three and nine months ended 2019, the Company recorded $1.1 million and $2.1 million, respectively, of real estate operating income, which is included in operating lease income in the consolidated statements of income. The following is a schedule of non-cancellable, contractual, future minimum rent under leases (excluding property operating expenses paid directly by tenant under net leases) at September 30, 2020 ($ in thousands): Period Ending December 31, Amount 2020 (last 3 months) $ 31,209 2021 72,872 2022 64,975 2023 64,206 2024 63,220 Thereafter 495,607 Total $ 792,089 Acquisitions During the nine months ended September 30, 2020, 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 Aggregate purchases of net leased real estate $ 6,239 100.0% Real estate acquired via foreclosure March 2020 Diversified Los Angeles, CA 21,535 100.0% June 2020 Diversified Winston Salem, NC 3,900 100.0% Total real estate acquired via foreclosure 25,435 Total real estate acquisitions $ 31,674 (1) Properties were consolidated as of acquisition date. The Company allocates purchase consideration based on relative fair values, and real estate acquisition costs are capitalized as a component of the cost of the assets acquired for asset acquisitions. During the nine months ended September 30, 2020, all acquisitions were determined to be asset acquisitions. The purchase prices were allocated to the asset acquisitions during the nine months ended September 30, 2020, as follows ($ in thousands): Purchase Price Allocation Land $ 23,524 Building 7,244 Intangibles 1,201 Below Market Lease Intangibles (295) Total purchase price $ 31,674 The weighted average amortization period for intangible assets acquired during the nine months ended September 30, 2020 was 39.8 years. The Company recorded $0.1 million and $0.3 million in revenues from its 2020 acquisitions for the three and nine months ended September 30, 2020, respectively, which is included in its consolidated statements of income. The Company recorded $0.5 million and $(0.4) million in earnings (losses) from its 2020 acquisitions for the three and nine months ended September 30, 2020, respectively, which is included in its consolidated statements of income. During the nine months ended September 30, 2019, the Company acquired the following properties ($ in thousands): Acquisition Date Type Primary Location(s) Purchase Price/Fair Value on the Date of Foreclosure Ownership Interest (1) Purchases of real estate Aggregate purchases of net leased real estate $ 13,904 100.0% 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 Company allocates purchase consideration based on relative fair values, and real estate acquisition costs are capitalized as a component of the cost of the assets acquired for asset acquisitions. 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 $167.4 thousand and $246.3 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. Acquisitions via Foreclosure In June 2020, the Company acquired a hotel in Winston Salem, NC via foreclosure. This property previously served as collateral for a mortgage loan receivable held for investment with a net basis of $3.8 million. The Company obtained a third-party appraisal of the property. The $3.9 million fair value was determined using the ground lease approach and the income approach to value. The appraiser utilized a terminal capitalization rate of 9.50% and a discount rate of 13.50%. There was no gain or loss resulting from the foreclosure of the loan. In March 2020, the Company acquired a development property in Los Angeles, CA, via foreclosure. This property previously served as collateral for a mortgage loan receivable held for investment with a basis of $21.6 million, net of an asset-specific loan loss provision of $2.0 million. The Company obtained a third-party appraisal of the property. Substantially all of the fair value was attributed to land. The $21.5 million fair value was determined using the sales comparison approach to value. Using this approach, the appraiser developed an opinion of the fee simple value of the underlying land by comparing the property to similar, recently sold properties in the surrounding or competing area. The Company recorded a $0.1 million loss resulting from the foreclosure of the loan. In February 2019, the Company acquired a hotel in Omaha, NE, via foreclosure. This property previously served as collateral for a mortgage loan receivable held for investment with a net basis of $17.9 million. The Company obtained a third-party appraisal of the property. The $18.2 million fair value was determined using the income approach to value. The appraiser utilized a terminal capitalization rate of 8.75% and a discount rate of 10.25%. There was no gain or loss resulting from the foreclosure of the loan. These non-recurring fair values are considered Level 3 measurements in the fair value hierarchy. Sales The Company sold the following properties during the nine months ended September 30, 2020 ($ in thousands): Sales Date Type Primary Location(s) Net Sales Proceeds Net Book Value Realized Gain/(Loss)(1) Properties Units Sold Units Remaining Various Condominium Miami, FL $ 1,199 $ 1,174 $ 25 — 4 2 March 2020 Diversified Richmond, VA 22,527 14,829 7,698 7 — — March 2020 Diversified Richmond, VA 6,932 4,109 2,823 1 — — August 2020 Net Lease Bellport, NY 19,434 15,012 4,422 1 — — September 2020 Diversified Lithia Springs, GA 39,491 23,187 16,304 1 — — September 2020 Diversified Winston Salem, NC 4,647 3,803 844 1 — — Totals $ 94,230 $ 62,114 $ 32,116 (1) Realized gain (loss) on the sale of real estate, net on the consolidated statements of income also includes $0.1 million of realized gain (loss) on the disposal of fixed assets for the nine months ended September 30, 2020. The Company sold the following properties during the nine months ended September 30, 2019 ($ 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 |
INVESTMENT IN AND ADVANCES TO U
INVESTMENT IN AND ADVANCES TO UNCONSOLIDATED JOINT VENTURES | 9 Months Ended |
Sep. 30, 2020 | |
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, 2020 and December 31, 2019 ($ in thousands): Entity September 30, 2020 December 31, 2019 Grace Lake JV, LLC $ 3,732 $ 3,047 24 Second Avenue Holdings LLC 45,423 45,386 Investment in unconsolidated joint ventures $ 49,155 $ 48,433 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, 2020 and 2019 ($ in thousands): Three Months Ended September 30, Nine Months Ended September 30, Entity 2020 2019 2020 2019 Grace Lake JV, LLC $ 236 $ 517 $ 685 $ 1,549 24 Second Avenue Holdings LLC 211 577 674 2,068 Earnings (loss) from investment in unconsolidated joint ventures $ 447 $ 1,094 $ 1,359 $ 3,617 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 LLC. The Company accounts for its interest in Grace Lake LLC 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, 2020, the Company received no distributions from its investment in Grace Lake LLC. During the nine months ended September 30, 2019, the Company had received $3.1 million of distributions from its investment in Grace Lake LLC. The Company holds its investment in Grace Lake LLC in a TRS. 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, 2020, 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 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 2019, 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. 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, subsequent to 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 September 30, 2020, 24 Second Avenue had $11.3 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, 2020, 24 Second Avenue sold 19 residential condominium units for $49.6 million in total gross sale proceeds, and one residential condominium unit was under contract for sale for $3.8 million in gross sales proceeds. As of September 30, 2020, 24 Second Avenue is holding a 15% deposit on the sales contract. As of September 30, 2020, the Company had no additional remaining capital commitment to 24 Second Avenue. The Company’s investment in 24 Second Avenue is an unconsolidated joint venture, which is a VIE for which the Company is not the primary beneficiary. This joint venture was deemed to be a VIE primarily based on (i) the fact that the total equity investment at risk (inclusive of the additional financing the Company provided through the first mortgage and mezzanine loans) is sufficient to permit the entities to finance activities without additional subordinated financial support provided by any parties, including equity holders; and (ii) the voting and economic rights are not disproportionate within the joint venture. The Company determined that it was not the primary beneficiary of this VIE because it does not have a controlling financial interest. The Company holds its investment in 24 Second Avenue in a TRS. Combined Summary Financial Information for Unconsolidated Joint Ventures The following is a summary of the combined financial position of the unconsolidated joint ventures in which the Company had investment interests as of September 30, 2020 and December 31, 2019 ($ in thousands): September 30, 2020 December 31, 2019 Total assets $ 114,110 $ 118,727 Total liabilities 76,477 78,762 Partners’/members’ capital $ 37,633 $ 39,965 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 three and nine months ended September 30, 2020 and 2019 ($ in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Total revenues $ 4,339 $ 3,915 $ 13,109 $ 14,945 Total expenses 3,458 4,595 10,882 12,029 Net income (loss) $ 881 $ (680) $ 2,227 $ 2,916 |
DEBT OBLIGATIONS, NET
DEBT OBLIGATIONS, NET | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
DEBT OBLIGATIONS, NET | 7. DEBT OBLIGATIONS, NET The details of the Company’s debt obligations at September 30, 2020 and December 31, 2019 are as follows ($ in thousands): September 30, 2020 Debt Obligations Committed Financing Debt Obligations Outstanding Committed but Unfunded Interest Rate at September 30, 2020(1) Current Term Maturity Remaining Extension Options Eligible Collateral Carrying Amount of Collateral Fair Value of Collateral Committed Loan Repurchase Facility(2) $ 500,000 $ 114,679 $ 385,321 1.9% — 2.15% 12/19/2022 (3) (4) $ 179,523 $ 179,523 Committed Loan Repurchase Facility 250,000 — 250,000 —% — —% 2/26/2021 (5) (6) — — Committed Loan Repurchase Facility 300,000 141,750 158,250 1.9% — 2.9% 12/19/2020 (7) (8) 183,851 183,851 Committed Loan Repurchase Facility 300,000 41,292 258,708 1.94% — 2.19% 11/6/2022 (9) (4) 76,193 76,193 Committed Loan Repurchase Facility 100,000 38,158 61,842 2.28% — 2.4% 12/31/2022 (10) (4) 64,711 64,752 Committed Loan Repurchase Facility 100,000 17,901 82,099 3.5% — 3.5% 3/24/2021 (11) (12) 30,600 30,600 Total Committed Loan Repurchase Facilities 1,550,000 353,780 1,196,220 534,878 534,919 Committed Securities Repurchase Facility(2) 785,321 352,197 433,124 0.86% — 2.41% 12/23/2021 N/A (13) 418,604 418,604 Uncommitted Securities Repurchase Facility N/A (13) 470,989 N/A (14) 0.91% — 3.5% 10/2020 - 12/2020 N/A (13) 583,353 583,353 (15) Total Repurchase Facilities 1,950,000 1,176,966 1,244,023 1,536,835 1,536,876 Revolving Credit Facility 266,430 266,430 — 3.15% — 3.16% 2/11/2021 (16) N/A (17) N/A (17) N/A (17) Mortgage Loan Financing 769,968 769,968 — 3.75% — 6.75% 2020 - 2030(17) N/A (19) 919,286 1,136,208 (20) Secured Financing Facility 206,350 190,582 (21) — 10.75% — 10.75% 5/6/2023 N/A (22) 335,674 336,055 CLO Debt 285,040 281,625 (23) — 5.5% — 5.5% 5/16/2024 N/A (24) 434,519 434,519 Borrowings from the FHLB 1,500,000 326,000 1,174,000 0.41% — 3% 2020 - 2024 N/A (24) 473,556 477,407 (25) Senior Unsecured Notes 1,716,994 1,702,939 (26) — 4.25% — 5.88% 2021 - 2027 N/A N/A (27) N/A (27) N/A (27) Total Debt Obligations, Net $ 6,694,782 $ 4,714,510 $ 2,418,023 $ 3,699,870 $ 3,921,065 (1) September 2020 LIBOR rates are used to calculate interest rates for floating rate debt. (2) The combined committed amounts for the loan repurchase facility and the securities repurchase facility total $900.0 million, with maximum capacity on the loan repurchase facility of $500.0 million, and maximum capacity on the securities repurchase facility of $900.0 million less outstanding commitments on the loan repurchase facility. (3) Two additional 12-month periods at Company’s option. No new advances are permitted after the initial maturity date. (4) First mortgage commercial real estate loans and senior and pari passu interests therein. It does not include the real estate collateralizing such loans. (5) Three additional 12-month periods at Company’s option. (6) First mortgage commercial real estate loans. It does not include the real estate collateralizing such loans. (7) Three additional 364-day periods. (8) 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. (9) One additional 12-month extension period and two additional 6-month extension periods at Company’s option. (10) Two additional 12-month extension periods at Company’s option. No new advances are permitted after the initial maturity date. (11) 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. (12) First mortgage, junior and mezzanine commercial real estate loans, and certain senior and/or pari passu interests therein. (13) Commercial real estate securities. It does not include the real estate collateralizing such securities. (14) Represents uncommitted securities repurchase facilities for which there is no committed amount subject to future advances. (15) Includes $2.2 million of restricted securities under the risk retention rules of the Dodd-Frank Act. These securities are accounted for as held-to-maturity and recorded at amortized cost basis. (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 $8.5 million and an unamortized discount of $7.3 million related to the Purchase Right (described in detail under Secured Financing Facility below) at September 30, 2020. (22) First mortgage commercial real estate loans. Substitution of collateral and conversion of loan collateral to mortgage collateral are permitted with Lender’s approval. (23) Presented net of unamortized debt issuance costs of $3.4 million at September 30, 2020. (24) 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. (25) Includes $9.4 million of restricted securities under the risk retention rules of the Dodd-Frank Act. These securities are accounted for as held-to-maturity and recorded at amortized cost basis. (26) Presented net of unamortized debt issuance costs of $14.1 million at September 30, 2020. (27) The obligations under the senior unsecured notes are guaranteed by the Company and certain of its subsidiaries. December 31, 2019 Debt Obligations Committed Financing Debt Obligations Outstanding Committed but Unfunded Interest Rate at December 31, 2019(1) Current Term Maturity Remaining Extension Options Eligible Collateral Carrying Amount of Collateral Fair Value of Collateral Committed Loan Repurchase Facility $ 600,000 $ 183,828 $ 416,172 3.24% — 3.74% 12/19/2022 (2) (3) $ 287,974 $ 288,210 Committed Loan Repurchase Facility 350,000 70,697 279,303 3.71% — 3.81% 5/24/2020 (4) (5) 101,590 103,868 Committed Loan Repurchase Facility 300,000 248,182 51,818 3.49% — 3.74% 12/19/2020 (6) (7) 382,778 382,778 Committed Loan Repurchase Facility 300,000 98,678 201,322 3.50% — 3.75% 11/6/2022 (8) (3) 175,000 175,270 Committed Loan Repurchase Facility 100,000 9,952 90,048 3.96% — 3.99% 1/3/2023 (9) (3) 75,628 75,813 Committed Loan Repurchase Facility 100,000 90,927 9,073 3.74% — 3.80% 12/24/2020 (10) (11) 126,311 126,311 Total Committed Loan Repurchase Facilities 1,750,000 702,264 1,047,736 1,149,281 1,152,250 Committed Securities Repurchase Facility 400,000 42,751 357,249 2.50% — 2.56% 12/23/2021 N/A (12) 52,691 52,691 Uncommitted Securities Repurchase Facility N/A (12) 1,070,919 N/A (13) 2.17% — 3.54% 1/2020 - 3/2020 N/A (12) 1,188,440 1,188,440 (14) Total Repurchase Facilities 2,150,000 1,815,934 1,404,985 2,390,412 2,393,381 Revolving Credit Facility 266,430 — 266,430 NA 2/11/2020 (15) N/A (16) N/A (16) N/A (16) Mortgage Loan Financing 812,606 812,606 — 3.75% — 6.75% 2020 - 2029(17) N/A (18) 988,857 1,192,106 (19) Borrowings from the FHLB 1,945,795 1,073,500 872,295 1.47% — 2.95% 2020 - 2024 N/A (20) 1,107,188 1,113,811 (21) Senior Unsecured Notes 1,166,201 1,157,833 (22) — 5.25% — 5.88% 2021 - 2025 N/A N/A (23) N/A (23) N/A (23) Total Debt Obligations $ 6,341,032 $ 4,859,873 $ 2,543,710 $ 4,486,457 $ 4,699,298 (1) December 31, 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) Three additional 364-day periods. (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) Two additional 12-month extension periods 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 $2.2 million of restricted securities under the risk retention rules of the Dodd-Frank Act. These securities are accounted for as held-to-maturity and recorded at amortized cost basis. (15) Four 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) First mortgage commercial real estate loans and pari passu interests therein. It does not include the real estate collateralizing such loans. (21) 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. (22) Includes $9.9 million of restricted securities under the risk retention rules of the Dodd-Frank Act. These securities are accounted for as held-to-maturity and recorded at amortized cost basis. (23) Presented net of unamortized debt issuance costs of $8.4 million at December 31, 2019. (24) The obligations under the senior unsecured notes are guaranteed by the Company and certain of its subsidiaries. Combined Maturity of Debt Obligations The following schedule reflects the Company’s contractual payments under all borrowings by maturity ($ in thousands): Period ending December 31, Borrowings by 2020 (last 3 months) $ 919,876 2021 914,964 2022 622,297 2023 351,620 2024 580,986 Thereafter 1,353,554 Subtotal 4,743,297 Debt issuance costs included in senior unsecured notes (14,055) Debt issuance costs included in secured financing facility (8,514) Discount on secured financing facility related to Purchase Right (7,254) Debt issuance costs included in CLO debt (3,416) Debt issuance costs included in mortgage loan financing (393) Premiums included in mortgage loan financing(2) 4,845 Total $ 4,714,510 (1) Contractual payments under current maturities, some of which are subject to extensions. The maturities listed above for 2020 (last 3 months) 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, 2020. (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. The Company’s debt facilities are subject to covenants which require the Company to maintain a minimum level of total equity. Largely as a result of this restriction, approximately $849.0 million of the total equity is restricted from payment as a dividend by the Company at September 30, 2020. Committed Loan and Securities Repurchase Facilities On February 14, 2020, the Company amended one of its committed loan repurchase facilities with a major U.S. bank to reduce the maximum capacity of the facility from $600.0 million to $500.0 million. On February 26, 2020, the Company amended one of its committed loan repurchase facilities with a major U.S. bank, extending the term of the facility. The current maturity date is now February 26, 2021, and the Company has three one-year extension options for a final maturity date of February 26, 2024. The Company also reduced the maximum size of the facility from $350.0 million to $250.0 million. On March 23, 2020, the Company amended one of its committed loan and securities repurchase facilities with a major U.S. bank to allow for an increase in the capacity on the securities repurchase facility, to the extent the Company has excess capacity on the loan repurchase facility. Prior to the amendment, the committed amounts on the facility were $500.0 million and $400.0 million on the loan and securities repurchase facilities, respectively. After the amendment, the committed amounts continue to total $900.0 million, with maximum capacity on the loan repurchase facility of $500.0 million, and maximum capacity on the securities repurchase facility of $900.0 million less outstanding commitments on the loan repurchase facility. Effective June 16, 2020, the Company amended the pricing side letter related to one of its committed loan repurchase facility with a major U.S. bank to extend the current maturity date to March 24, 2021. The Company also temporarily increased the leverage covenant to 4.0x through and including December 31, 2020. Secured Financing Facility On April 30, 2020, the Company entered into a strategic financing arrangement (the “Agreement”) with an American multinational corporation (the “Lender”), under which the Lender will provide the Company with approximately $206.4 million in senior secured financing (the “Secured Financing Facility”) to fund transitional and land loans. The Secured Financing Facility will be secured on a first lien basis on a portfolio of certain of the Company’s loans and will mature on May 6, 2023, and borrowings thereunder will bear interest at LIBOR (or a minimum of 0.75% if greater) plus 10.0%, with a minimum interest premium of approximately $39.2 million minus the aggregate sum of all interest payments made under the Secured Financing Facility prior to the date of payment of the minimum interest premium, which is payable upon the earlier of maturity or repayment in full of the loan. The Senior Financing Facility is non-recourse, subject to limited exceptions, and does not contain mark-to-market provisions. Additionally, the Senior Financing Facility provides the Company optionality to modify or restructure loans or forbear in exercising remedies, which maximizes the Company’s financial flexibility. As part of the strategic financing, the Lender also has the ability to make an equity investment in the Company of up to 4.0 million Class A common shares at $8.00, which amount and price may be proportionally adjusted in the event of equity distributions, stock splits, reclassifications and other similar events (the “Purchase Right”). The Purchase Right will expire on December 31, 2020. The Company expects that any such investment would additionally benefit its liquidity position. The Purchase Right was classified as equity. The $200.9 million of net proceeds from the original issuance were allocated $192.5 million to the originally issued debt obligation and $8.4 million to the Purchase Right using the relative fair value method. The commitment to issue shares will not be subsequently remeasured. The $8.4 million allocated to the Purchase Right is being treated as a discount to the debt and amortized over the life of the Purchase Right to interest expense. Pursuant to the Purchase Right, the Lender has agreed to a customary standstill until December 31, 2020 or the date on which the Lender has exercised the Purchase Right in full, if earlier. In addition, the Lender has agreed not to sell, transfer, assign, pledge, hypothecate, mortgage, dispose of or in any way encumber the shares acquired as a result of exercising the Purchase Right for a period of time following the exercise date. In connection with the issuance of the Purchase Right, the Company and the Lender entered into a registration rights agreement, pursuant to which the Company has agreed to provide customary demand and piggyback registration rights to the Lender. As of September 30, 2020, the Company had $190.6 million of borrowings outstanding under the secured financing facility included in debt obligations on its consolidated balance sheets, net of unamortized debt issuance costs of $8.5 million and an $7.3 million unamortized discount related to the Purchase Right. Collateralized Loan Obligation (“CLO”) Debt On April 27, 2020, a consolidated subsidiary of the Company completed a private CLO transaction with a major U.S. bank which generated $310.2 million of gross proceeds to Ladder, financing $481.3 million of loans (“Contributed Loans”) at a 64.5% advance rate on a matched term, non-mark-to-market and non-recourse basis. A consolidated subsidiary of the Company retained a 35.5% subordinate and controlling interest in the CLO. The Company retained control over major decisions made with respect to the administration of the Contributed Loans, including broad discretion in managing these loans in light of the COVID-19 pandemic, and has the ability to appoint the special servicer under the CLO. The CLO is a VIE and the Company was the primary beneficiary and, therefore, consolidated the VIE - See Note 10, Consolidated Variable Interest Entities. Proceeds from the transaction were used to pay off other secured debt including bank and FHLB financing that was subject to mark-to-market provisions. As of September 30, 2020, the Company had $281.6 million of matched term, non-mark-to-market and non-recourse basis CLO debt included in debt obligations on its consolidated balance sheets. Unamortized debt issuance costs of $3.4 million were included in CLO debt as of September 30, 2020. Senior Unsecured Notes As of September 30, 2020, the Company had $1.7 billion of unsecured corporate bonds outstanding. These unsecured financings were comprised of $251.4 million in aggregate principal amount of 5.875% senior notes due 2021 (the “2021 Notes”), $465.9 million in aggregate principal amount of 5.25% senior notes due 2022 (the “2022 Notes”), $348.0 million in aggregate principal amount of 5.25% senior notes due 2025 (the “2025 Notes”) and $651.8 million in aggregate principal amount of 4.25% senior notes due 2027 (the “2027 Notes,” collectively with the 2021 Notes, the 2022 Notes and the 2025 Notes, the “Notes”). As a result of the Company’s financing and liquidity measures implemented to date as a direct response to the COVID-19 pandemic, Ladder repurchased an aggregate principal of the Notes of $139.1 million, recognizing a gain on extinguishment of debt of $19.0 million, offset by accelerated deferred financing cost amortization of $1.5 million during the three months ended June 30, 2020. 2027 Notes On January 30, 2020, LCFH and Ladder Capital Finance Corporation (“LCFC”), a wholly-owned subsidiary of LCFH, issued $750.0 million in aggregate principal amount of 4.25% senior notes due February 1, 2027. The 2027 Notes require interest payments semi-annually in cash in arrears on August 1 and February 1 of each year, beginning on August 1, 2020. The 2027 Notes will mature on February 1, 2027. The 2027 Notes are unsecured and are subject to an unencumbered assets to unsecured debt covenant. The Company may redeem the 2027 Notes, in whole, at any time, or from time to time, prior to their stated maturity. At any time on or after February 1, 2023, the Company may redeem the 2027 Notes in whole or in part, upon not less than 15 nor more than 60 days’ notice, at a redemption price defined in the indenture governing the 2027 Notes, plus accrued and unpaid interest, if any, to the redemption date. Net proceeds of the offering were used to repay secured indebtedness. During the nine months ended September 30, 2020, the Company retired $98.2 million of principal of the 2027 Notes for a repurchase price of $83.9 million, recognizing a $12.9 million net gain on extinguishment of debt after recognizing $(1.3) million of unamortized debt issuance costs associated with the retired debt. As of September 30, 2020, the remaining $651.8 million in aggregate principal amount of the 2027 Notes is due February 1, 2027. 2025 Notes On September 25, 2017, LCFH and LCFC issued $400.0 million in aggregate principal amount of 5.25% senior notes due October 1, 2025. During the nine months ended September 30, 2020, the Company retired $52.0 million of principal of the 2025 Notes for a repurchase price of $45.1 million, recognizing a $6.4 million net gain on extinguishment of debt after recognizing $(0.5) million of unamortized debt issuance costs associated with the retired debt. As of September 30, 2020, the remaining $348.0 million in aggregate principal amount of the 2025 Notes is due October 1, 2025. 2022 Notes On March 16, 2017, LCFH issued $500.0 million in aggregate principal amount of 5.250% senior notes due March 15, 2022. During the nine months ended September 30, 2020, the Company retired $34.2 million of principal of the 2022 Notes for a repurchase price of $33.2 million, recognizing a $0.7 million net gain on extinguishment of debt after recognizing $(0.2) million of unamortized debt issuance costs associated with the retired debt. As of September 30, 2020, the remaining $465.9 million in aggregate principal amount of the 2022 Notes is due March 15, 2022. 2021 Notes On August 1, 2014, LCFH and LCFC issued $300.0 million in aggregate principal amount of 5.875% senior notes due August 1, 2021. During the nine months ended September 30, 2020, the Company retired $14.9 million of principal of the 2021 Notes for a repurchase price of $14.6 million, recognizing a $0.2 million net gain on extinguishment of debt after recognizing $(34.0) thousand of unamortized debt issuance costs associated with the retired debt. As of September 30, 2020, the remaining $251.4 million in aggregate principal amount of the 2021 Notes is due August 1, 2021. Financing Strategy in Current Market Conditions In March 2020, as the COVID-19 health crisis rapidly transformed into a financial crisis, management took swift action to increase liquidity resources and actively manage its financing arrangements with its bank partners. In an abundance of caution, the Company first drew down on its $266.4 million unsecured revolving credit facility, which continues to be fully-drawn, and the proceeds continue to be held as unrestricted cash on the Company’s balance sheet as of October 29, 2020. Securities Repurchase Facilities: The Company invests in AAA-rated CRE CLO securities, typically front pay securities, with relatively short duration and significant subordination. These securities have historically been financed with short-term maturity repurchase agreements with various bank counterparties. The Company has been able to continue to access securities repurchase funding and the pricing of such borrowings has improved during the three months ended September 30, 2020 as liquidity continued to return to the market and pricing for the securities that serve as collateral improved. Furthermore, during the three months ended September 30, 2020, the Company paid down $90.8 million of securities repurchase financing, primarily through sales of securities. Federal Home Loan Bank (“FHLB”) Financing: As discussed in the Company’s Annual Report, in 2016, the FHFA adopted a final rule that limited our captive insurance subsidiary’s membership in the FHLB, requiring us to significantly reduce the amounts of FHLB borrowings outstanding by February of 2021. During the three months ended September 30, 2020, the Company paid down FHLB borrowings of $34.8 million. The remaining maturities are staggered out through 2024. Funding for future advance paydowns would be obtained from the natural amortization of securities over time, loan pay offs and/or sales of loan and securities collateral. During the three months ended June 30, 2020, the Company paid down FHLB borrowings of $646.8 million and incurred $6.5 million in prepayment penalties related to this paydown. Loan Repurchase Financing: The Company has maintained a consistent dialogue with its loan financing counterparties since the COVID-19 crisis unfolded in late March 2020. In addition to using proceeds from the Company’s 2027 Notes offering in January to reduce secured debt, during the three months ended September 30, 2020, the Company paid down over $27.3 million on such loan repurchase financing through loan collateral pay offs and loans securitized through a CLO financing transaction (see above). The Company continues to maintain an active dialogue with its bank counterparties as it expects loan collateral on each of their lines to experience some measure of forbearance. Secured Financing Facility: On April 30, 2020, the Company entered into a strategic financing arrangement (the “Agreement”) with an American multinational corporation (the “Lender”), under which the Lender will provide the Company with approximately $206.4 million in senior secured financing (the “Secured Financing Facility”) to fund transitional and land loans (see above). Completion of Private CLO: On April 27, 2020, the Company completed a private CLO financing transaction with a major U.S. bank which generated $310.2 million of gross proceeds, financing $481.3 million of loans at a 64.5% advance rate on a matched term, non-mark-to-market and non-recourse basis (see above). Based on the financing actions described above, the Company has significantly decreased its exposure to mark-to-market financing. Financial Covenants |
DERIVATIVE INSTRUMENTS
DERIVATIVE INSTRUMENTS | 9 Months Ended |
Sep. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE INSTRUMENTS | 8. DERIVATIVE INSTRUMENTS The Company uses derivative instruments primarily to economically manage the fair value variability of fixed rate assets caused by interest rate fluctuations and overall portfolio market risk. The following is a breakdown of the derivatives outstanding as of September 30, 2020 and December 31, 2019 ($ in thousands): September 30, 2020 Fair Value Remaining Contract Type Notional Asset(1) Liability(1) Caps 1 Month LIBOR $ 69,571 $ — $ — 0.61 Futures 5-year Swap 24,400 164 — 0.25 10-year Swap 42,400 285 — 0.25 Total futures 66,800 449 — Total derivatives $ 136,371 $ 449 $ — (1) Shown as derivative instruments, at fair value, in the accompanying consolidated balance sheets. December 31, 2019 Fair Value Remaining Contract Type Notional Asset(1) Liability(1) Caps 1Month LIBOR $ 69,571 $ — $ — 0.36 Futures 5-year Swap 46,000 158 — 0.25 10-year Swap 149,800 516 — 0.25 5-year U.S. Treasury Note 1,100 4 — 0.25 Total futures 196,900 678 — Credit Derivatives S&P 500 Put Options 143,300 15 — 0.05 Total credit derivatives 143,300 15 — Total derivatives $ 409,771 $ 693 $ — (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, 2020 and 2019 ($ in thousands): Three Months Ended September 30, 2020 Nine Months Ended September 30, 2020 Unrealized Realized Net Result Unrealized Realized Net Result Contract Type Futures $ 69 $ 191 $ 260 $ (229) $ (16,081) $ (16,310) Credit Derivatives — — — 111 211 322 Total $ 69 $ 191 $ 260 $ (118) $ (15,870) $ (15,988) Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 Unrealized Realized Net Result Unrealized Realized Net Result 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) The Company’s counterparties held $0.9 million and $3.5 million of cash margin as collateral for derivatives as of September 30, 2020 and December 31, 2019, 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. |
OFFSETTING ASSETS AND LIABILITI
OFFSETTING ASSETS AND LIABILITIES | 9 Months Ended |
Sep. 30, 2020 | |
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, 2020 and December 31, 2019. 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, 2020 Offsetting of Financial Assets and Derivative Assets ($ in thousands) Description Gross amounts of Gross amounts Net amounts of Gross amounts not offset in the Net amount Financial Cash collateral Derivatives $ 449 $ — $ 449 $ — $ — $ 449 Total $ 449 $ — $ 449 $ — $ — $ 449 (1) Included in restricted cash on consolidated balance sheets. As of September 30, 2020 Offsetting of Financial Liabilities and Derivative Liabilities ($ in thousands) Description Gross amounts of Gross amounts Net amounts of Gross amounts not offset in the Net amount Financial Cash collateral Repurchase agreements $ 1,176,966 $ — $ 1,176,966 $ 1,176,966 $ — $ — Total $ 1,176,966 $ — $ 1,176,966 $ 1,176,966 $ — $ — (1) Included in restricted cash on consolidated balance sheets. As of December 31, 2019 Offsetting of Financial Assets and Derivative Assets ($ in thousands) Description Gross amounts of Gross amounts Net amounts of Gross amounts not offset in the Net amount Financial Cash collateral Derivatives $ 693 $ — $ 693 $ — $ — $ 693 Total $ 693 $ — $ 693 $ — $ — $ 693 (1) Included in restricted cash on consolidated balance sheets. As of December 31, 2019 Offsetting of Financial Liabilities and Derivative Liabilities ($ in thousands) Description Gross amounts of Gross amounts Net amounts of Gross amounts not offset in the Net amount Financial Cash collateral Repurchase agreements $ 1,815,934 $ — $ 1,815,934 $ 1,815,934 $ — $ — Total $ 1,815,934 $ — $ 1,815,934 $ 1,815,934 $ — $ — (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, 2020 and December 31, 2019 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, 2020 | |
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 Company consolidates one collateralized loan obligation (“CLO”) VIE with the following balance sheet ($ in thousands): September 30, 2020 Notes 3 & 7 Restricted cash $ 8,649 Mortgage loan receivables held for investment, net, at amortized cost 434,519 Accrued interest receivable 1,620 Other assets 5,451 Total assets $ 450,239 Debt obligations, net $ 281,625 Accrued expenses 653 Total liabilities 282,278 Net equity in VIEs (eliminated in consolidation) 167,961 Total equity 167,961 Total liabilities and equity $ 450,239 |
EQUITY STRUCTURE AND ACCOUNTS
EQUITY STRUCTURE AND ACCOUNTS | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
EQUITY STRUCTURE AND ACCOUNTS | 11. EQUITY STRUCTURE AND ACCOUNTS 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 I LLC Share, subject to equitable adjustments for stock splits, stock dividends and reclassifications. As of September 30, 2020, all shares of Class B common stock, Series REIT LP Units and Series TRS LP Units have been exchanged for shares of Class A common stock. During the nine months ended September 30, 2020, 12,160,000 Series REIT LP Units and 12,160,000 Series TRS LP Units were collectively exchanged for 12,160,000 shares of Class A common stock and 12,160,000 shares of Class B common stock were canceled. We received no other consideration in connection with these exchanges. As of September 30, 2020, the Company held a 100.0% interest in LCFH. 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. As of September 30, 2019, the Company held a 89.8% interest in LCFH. 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. As of September 30, 2020, the Company has a remaining amount available for repurchase of $38.6 million, which represents 4.5% in the aggregate of its outstanding Class A common stock, based on the closing price of $7.12 per share on such date. The following table is a summary of the Company’s repurchase activity of its Class A common stock during the nine months ended September 30, 2020 and 2019 ($ in thousands): Shares Amount(1) Authorizations remaining as of December 31, 2019 $ 41,132 Additional authorizations — Repurchases paid 334,251 (2,578) Repurchases unsettled — Authorizations remaining as of September 30, 2020 $ 38,554 (1) Amount excludes commissions paid associated with share repurchases. 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. Dividends The following table presents dividends declared (on a per share basis) of Class A common stock for the nine months ended September 30, 2020 and 2019: Declaration Date Dividend per Share February 27, 2020 $ 0.340 May 28, 2020 0.200 August 31, 2020 0.200 Total $ 0.740 February 27, 2019 $ 0.340 May 30, 2019 0.340 August 22, 2019 0.340 Total $ 1.020 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, 2020 and 2019 ($ in thousands): Accumulated Other Comprehensive Income (Loss) Accumulated Other Comprehensive Income (Loss) of Noncontrolling Interests Total Accumulated Other Comprehensive Income (Loss) December 31, 2019 $ 4,218 $ 477 $ 4,695 Other comprehensive income (loss) (27,935) (5,208) (33,143) Exchange of noncontrolling interest for common stock (6,953) 6,953 — Rebalancing of ownership percentage between Company and Operating Partnership 2,222 (2,222) — September 30, 2020 $ (28,448) $ — $ (28,448) 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 |
NONCONTROLLING INTERESTS
NONCONTROLLING INTERESTS | 9 Months Ended |
Sep. 30, 2020 | |
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 held 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, were exchangeable for Class A shares of the Company. The roll-forward of the Operating Partnership’s LP Units followed the Class B common stock of the Company as disclosed in the consolidated statements of changes in equity. As of September 30, 2020, all shares of Class B common stock have been exchanged for shares of Class A common stock, and the Company held a 100% interest in LCFH. 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, 2020, the Company has increased noncontrolling interests in the Operating Partnership and accumulated other comprehensive income and increased additional paid-in capital in the Company’s shareholders’ equity by $1.0 million as of September 30, 2020. 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 were 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, 2020, the Company consolidates four ventures in which there are other noncontrolling investors, which own between 10.0% - 25.0% of such ventures. These ventures hold investments in a 40-building student housing portfolio in Isla Vista, CA with a book value of $82.0 million, 11 office buildings in Richmond, VA with a book value of $71.7 million, a single-tenant office building in Oakland County, MI with a book value of $9.2 million and an apartment complex in Miami, FL with a book value of $37.1 million. The Company makes distributions and allocates income from these ventures to the noncontrolling interests in accordance with the terms of the respective governing agreements. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | 13. EARNINGS PER SHARE The Company’s net income (loss) and weighted average shares outstanding for the three and nine months ended September 30, 2020 and 2019 consist of the following: Three Months Ended September 30, Nine Months Ended September 30, ($ in thousands except share amounts) 2020 2019 2020 2019 Basic Net income (loss) available for Class A common shareholders $ 17,188 $ 27,576 $ (2,729) $ 81,996 Diluted Net income (loss) available for Class A common shareholders $ 17,188 $ 27,576 $ (2,729) $ 81,996 Weighted average shares outstanding Basic 117,481,812 106,004,152 110,233,748 105,264,752 Diluted 118,791,927 106,603,713 110,233,748 106,232,581 The calculation of basic and diluted net income (loss) per share amounts for the three and nine months ended September 30, 2020 and 2019 consist of the following: Three Months Ended September 30, Nine Months Ended September 30, (In thousands except share amounts) 2020 2019(1) 2020(1) 2019(1) Basic Net Income (Loss) Per Share of Class A Common Stock Numerator: Net income (loss) attributable to Class A common shareholders $ 17,188 $ 27,576 $ (2,729) $ 81,996 Denominator: Weighted average number of shares of Class A common stock outstanding 117,481,812 106,004,152 110,233,748 105,264,752 Basic net income (loss) per share of Class A common stock $ 0.15 $ 0.26 $ (0.02) $ 0.78 Diluted Net Income (Loss) Per Share of Class A Common Stock Numerator: Net income (loss) attributable to Class A common shareholders $ 17,188 $ 27,576 $ (2,729) $ 81,996 Add (deduct) - dilutive effect of: Amounts attributable to operating partnership’s share of Ladder Capital Corp net income (loss)(2) — — — — Additional corporate tax (expense) benefit(2) — — — — Diluted net income (loss) attributable to Class A common shareholders 17,188 27,576 (2,729) 81,996 Denominator: Basic weighted average number of shares of Class A common stock outstanding 117,481,812 106,004,152 110,233,748 105,264,752 Add - dilutive effect of: Shares issuable relating to converted Class B common shareholders(3) 1,217,761 — — — Incremental shares of unvested Class A restricted stock(3) 92,354 599,561 — 967,829 Incremental shares of unvested stock options — — — — Diluted weighted average number of shares of Class A common stock outstanding 118,791,927 106,603,713 110,233,748 106,232,581 Diluted net income (loss) per share of Class A common stock $ 0.14 $ 0.26 $ (0.02) $ 0.77 (1) For the nine months ended September 30, 2020 and the three and nine months ended and 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. (2) The Company is 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 for periods prior to September 30, 2020. There are no Class B common stock outstanding as of September 30, 2020. (3) The Company is using the treasury stock method. |
STOCK BASED AND OTHER COMPENSAT
STOCK BASED AND OTHER COMPENSATION PLANS | 9 Months Ended |
Sep. 30, 2020 | |
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 and in Note 14, Stock Based and Other Compensation Plans included within the Company’s Annual Report ($ in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Stock Based Compensation Expense $ 4,219 $ 3,575 $ 20,957 $ 18,336 Phantom Equity Investment Plan (94) 343 (1,671) 1,047 Stock Options Exercised — — 270 — Bonus Expense 517 6,533 487 21,035 Total $ 4,642 $ 10,451 $ 20,043 $ 40,418 Summary of Stock and Shares/Options Nonvested/Outstanding A summary of the grants is presented below: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Number Weighted Number Weighted Number Weighted Number Weighted Grants - Class A Common Stock — $ — 24,125 $ 16.58 1,466,337 $ 18.72 1,569,694 $ 17.54 Grants - Class A Common Stock 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, 2020 and changes during 2020 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, 2019 1,436,683 994,208 Granted 1,466,337 — Exercised (83,845) Vested (1,221,279) Forfeited (24,266) — Expired — Nonvested/Outstanding at September 30, 2020 1,657,475 910,363 Exercisable at September 30, 2020 910,363 At September 30, 2020 there was $18.0 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 22.8 months, with a weighted-average remaining vesting period of 29 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 2020 with Respect to 2019 Performance For 2019 performance, certain employees received stock-based incentive equity. Fair value for all restricted and unrestricted stock grants was calculated using the closing stock price on the grant date. Compensation expense for unrestricted stock grants will be expensed immediately. 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. Restricted stock subject to performance criteria is eligible to 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 the years ended December 31, 2020, 2021 and 2022, respectively. If the Company misses the Performance Target during either the first or second calendar year but meets the Performance Target for a subsequent year during the three year performance period and the Company’s return on equity for such subsequent year and any years for which it missed its Performance Target equals or exceeds the compounded return on equity of 8%, based on core earnings divided by the Company’s average book value of equity, the performance-vesting restricted stock which failed to vest because the Company previously missed its Performance Target will vest subject to continued employment on the applicable vesting date (the “Catch-Up Provision”). 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. In view of the adverse impacts of COVID-19 on the Company’s operations and investments and the resulting intensified corporate focus on defensive actions, including maintaining high levels of unrestricted cash liquidity and refinancing debt with more expensive non-mark-to-market funding sources, the Company is no longer classifying the 2020 Performance Target as probable as of September 30, 2020 and has reversed $1.0 million of previous compensation expense relating to grants of restricted stock with a December 2020 performance hurdle as their last vesting date (not available to take advantage of the Catch-Up Provision). However, recognizing that Ladder’s employees took these actions that, while in the best interests of the Company and its shareholders, would not produce earnings consistent with the Performance Target in their deferred compensation arrangements, on May 27, 2020, the compensation committee of the board of directors used its discretion to waive the Performance Target for shares eligible to vest based on the Company’s performance in 2020 and 2021, subject to continued employment on the applicable vesting dates. The Company recorded $0.1 million of incremental compensation cost during the three and nine months ended September 30, 2020 as a result of this modification. There are currently 47 Ladder employees and one consultant eligible for such waiver. On February 18, 2020, in connection with 2019 compensation, annual stock and restricted stock awards were granted to management grantees, other than Ms. Porcella, with an aggregate fair value of $12.0 million which represents 639,690 shares of Class A common stock. The grant to Ms. Porcella is subject to the same time-based and performance-based vesting described below for non-management grantees and her shares are included in that total. The grant to Mr. Harris, and 50% of the grants to Mr. Fox, Ms. McCormack and Mr. Perelman, were unrestricted. The other 50% of incentive equity granted to Mr. Fox, Ms. McCormack and Mr. Perelman is restricted stock subject to performance criteria as described above. On February 18, 2020, in connection with 2019 compensation, stock awards were granted to Ms. Porcella and non-management employees (“Non-Management Grantees”) with an aggregate value of $15.0 million which represents 802,611 shares of mostly restricted Class A common stock. Fifty percent of most stock awards is subject to time-based vesting criteria, and the remaining 50% of these stock awards is subject to attainment of the Performance Target for the applicable years. The time-vesting restricted stock will vest in three installments on February 18 of each of 2021, 2022 and 2023 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, 2020, 2021 and 2022, respectively. The Catch-Up Provision applies to the performance vesting portion of this award. The compensation expense related to the performance-based restricted stock granted on February 18, 2020 shall be recognized 1/3 for the period February 18, 2020 through February 18, 2021, 1/3 for the period February 19, 2021 through February 18, 2022 and 1/3 for the period February 19, 2022 through February 18, 2023. In the event Ms. Porcella or 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. Upon a change in control (as defined in the respective award agreements), restricted stock awards to Mr. Fox, Ms. McCormack and Mr. Perelman will become fully vested if (1) such 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, such management grantee’s employment is terminated without cause or due to death or disability or the management grantee resigns for Good Reason, as described in the Company’s definitive proxy statement filed with the SEC on April 28, 2020. 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. 2020 Restricted Stock Awards On February 18, 2020, certain members of the board of directors each received Annual Restricted Stock Awards with a grant date fair value of $0.4 million, representing 24,036 shares of restricted Class A common stock, which will vest in full on the first anniversary of the date of grant, subject to continued service on the board of directors. Compensation expense related to the time-based vesting criteria of the award shall be recognized on a straight-line basis over the one year vesting period. On March 26, 2020, 5,803 shares of restricted Class A common stock were forfeited when a member resigned from the board of directors. Bonus Payments |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | 15. FAIR VALUE OF FINANCIAL INSTRUMENTS Fair value is based upon internal models, using market quotations, broker quotations, counterparty quotations or pricing services quotations, which provide valuation estimates based upon reasonable market order indications and are subject to significant variability based on market conditions, such as interest rates, credit spreads and market liquidity. The fair value of the mortgage loan receivables held for sale is based upon a securitization model utilizing market data from recent securitization spreads and pricing. Fair Value Summary Table The carrying values and estimated fair values of the Company’s financial instruments, which are both reported at fair value on a recurring basis (as indicated) or amortized cost/par, at September 30, 2020 and December 31, 2019 are as follows ($ in thousands): September 30, 2020 Weighted Average Outstanding Amortized Cost Basis/Purchase Price Fair Value Fair Value Method Yield Remaining Assets: CMBS(1) $ 1,420,752 $ 1,420,537 $ 1,390,562 Internal model, third-party inputs 1.54 % 2.10 CMBS interest-only(1) 1,506,152 (2) 23,063 23,741 Internal model, third-party inputs 3.32 % 2.28 GNMA interest-only(3) 87,917 (2) 1,175 1,228 Internal model, third-party inputs 3.90 % 3.27 Agency securities(1) 595 603 619 Internal model, third-party inputs 1.66 % 1.40 GNMA permanent securities(1) 30,542 30,662 31,494 Internal model, third-party inputs 3.49 % 2.20 Provision for current expected credit reserves N/A (19) (19) (5) N/A N/A Mortgage loan receivables held for investment, net, at amortized cost: Mortgage loan receivables held for investment, net, at amortized cost 2,744,724 2,731,254 2,743,359 Discounted Cash Flow(4) 6.81 % 1.10 Provision for current expected credit reserves N/A (47,084) (47,084) (5) N/A N/A Mortgage loan receivables held for sale 30,513 30,553 32,016 Internal model, third-party inputs(6) 4.05 % 9.43 FHLB stock(7) 61,619 61,619 61,619 (7) 3.50 % N/A Nonhedge derivatives(1)(8) 66,800 N/A 449 Counterparty quotations N/A 0.25 Liabilities: Repurchase agreements - short-term 1,140,350 1,140,350 1,140,350 Discounted Cash Flow(9) 1.55 % 0.24 Repurchase agreements - long-term 36,616 36,616 36,616 Discounted Cash Flow(10) 0.64 % 1.23 Revolving credit facility 266,430 266,430 266,430 Discounted Cash Flow(9) 3.16 % 0.06 Mortgage loan financing 765,516 769,968 791,391 Discounted Cash Flow(10) 4.98 % 4.75 Secured financing facility 190,582 190,582 190,582 Discounted Cash Flow(9) 10.75 % 2.60 CLO debt 281,625 281,625 281,625 Discounted Cash Flow(9) 5.50 % 3.63 Borrowings from the FHLB 326,000 326,000 327,418 Discounted Cash Flow 1.33 % 2.68 Senior unsecured notes 1,716,994 1,702,939 1,031,999 Internal model, third-party inputs 4.96 % 3.94 (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 - short term borrowings under the secured financing facility and borrowings under the revolving credit facility is estimated to approximate carrying amount primarily due to the short interest rate reset risk (30 days) of the financings and the high credit quality of the assets collateralizing these positions. 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, mortgage loan financing, and CLO debt 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, 2019 Weighted Average Outstanding Amortized Fair Value Fair Value Method Yield Remaining Assets: CMBS(1) $ 1,640,597 $ 1,640,905 $ 1,644,322 Internal model, third-party inputs 3.08 % 2.41 CMBS interest-only(1) 1,559,160 (2) 28,553 29,146 Internal model, third-party inputs 3.04 % 2.53 GNMA interest-only(3) 109,783 (2) 1,982 1,851 Internal model, third-party inputs 4.59 % 2.77 Agency securities(1) 629 640 637 Internal model, third-party inputs 1.73 % 1.83 GNMA permanent securities(1) 31,461 31,681 32,369 Internal model, third-party inputs 3.17 % 1.93 Equity securities(3) N/A 12,848 12,980 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 3,277,596 3,257,036 3,273,219 Discounted Cash Flow(4) 6.94 % 1.43 Provision for loan losses N/A (20,500) (20,500) (5) N/A N/A Mortgage loan receivables held for sale 122,748 122,325 124,989 Internal model, third-party inputs(6) 4.20 % 9.99 FHLB stock(7) 61,619 61,619 61,619 (7) 4.75 % N/A Nonhedge derivatives(1)(8) 340,200 N/A 693 Counterparty quotations N/A 0.25 Liabilities: Repurchase agreements - short-term 1,781,253 1,781,253 1,781,253 Discounted Cash Flow(9) 2.50 % 0.19 Repurchase agreements - long-term 34,681 34,681 34,681 Discounted Cash Flow(10) 2.81 % 1.41 Mortgage loan financing 807,854 812,606 838,766 Discounted Cash Flow(10) 4.91 % 5.65 Borrowings from the FHLB 1,073,500 1,073,500 1,080,354 Discounted Cash Flow 2.33 % 2.08 Senior unsecured notes 1,166,201 1,157,833 1,208,860 Internal model, third-party inputs 5.39 % 3.28 Nonhedge derivatives(1)(8) 69,571 N/A — Counterparty quotations N/A 0.36 (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 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. 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, 2020 and December 31, 2019 ($ in thousands): September 30, 2020 Financial Instruments Reported at Fair Value on Consolidated Statements of Financial Condition Outstanding Face Fair Value Level 1 Level 2 Level 3 Total Assets: CMBS(1) $ 1,409,202 $ — $ — $ 1,379,469 $ 1,379,469 CMBS interest-only(1) 1,495,559 (2) — — 23,035 23,035 GNMA interest-only(3) 87,917 (2) — — 1,228 1,228 Agency securities(1) 595 — — 619 619 GNMA permanent securities(1) 30,542 — — 31,494 31,494 Nonhedge derivatives(4) 66,800 — 449 — 449 $ — $ 449 $ 1,435,845 $ 1,436,294 Financial Instruments Not Reported at Fair Value on Consolidated Statements of Financial Condition Outstanding Face 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 $ 2,744,724 $ — $ — $ 2,743,359 $ 2,743,359 Provision for current expected credit losses N/A — — (47,084) (47,084) Mortgage loan receivable held for sale 30,513 — — 32,016 32,016 CMBS(5) 11,550 — — 11,093 11,093 CMBS interest-only(5) 10,593 (2) — — 706 706 Provision for current expected credit losses N/A (19) (19) FHLB stock 61,619 — — 61,619 61,619 $ — $ — $ 2,801,690 $ 2,801,690 Liabilities: Repurchase agreements - short-term 1,140,350 $ — $ — $ 1,140,350 $ 1,140,350 Repurchase agreements - long-term 36,616 — — 36,616 36,616 Revolving credit facility 266,430 — — 266,430 266,430 Mortgage loan financing 765,516 — — 791,391 791,391 Secured financing facility 190,582 — — 190,582 190,582 CLO debt 281,625 — — 281,625 281,625 Borrowings from the FHLB 326,000 — — 327,418 327,418 Senior unsecured notes 1,716,994 — — 1,031,999 1,031,999 $ — $ — $ 4,066,411 $ 4,066,411 (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, 2019 Financial Instruments Reported at Fair Value on Consolidated Statements of Financial Condition Outstanding Face Fair Value Level 1 Level 2 Level 3 Total Assets: CMBS(1) $ 1,628,476 $ — $ — $ 1,632,714 $ 1,632,714 CMBS interest-only(1) 1,548,061 (2) — — 28,342 28,342 GNMA interest-only(3) 109,783 (2) — — 1,851 1,851 Agency securities(1) 629 — — 637 637 GNMA permanent securities(1) 31,461 — — 32,369 32,369 Equity securities N/A 12,980 — — 12,980 Nonhedge derivatives(4) 340,200 — 693 — 693 $ 12,980 $ 693 $ 1,695,913 $ 1,709,586 Liabilities: Nonhedge derivatives(4) $ 69,571 $ — $ — $ — $ — Financial Instruments Not Reported at Fair Value on Consolidated Statements of Financial Condition Outstanding Face 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 $ 3,277,597 $ — $ — $ 3,273,219 $ 3,273,219 Provision for loan losses N/A — — (20,500) (20,500) Mortgage loan receivables held for sale 122,748 — — 124,989 124,989 CMBS(5) 12,121 — — 11,608 11,608 CMBS interest-only(5) 11,099 (2) — — 804 804 FHLB stock 61,619 — — 61,619 61,619 $ — $ — $ 3,451,739 $ 3,451,739 Liabilities: Repurchase agreements - short-term 1,781,253 $ — $ — $ 1,781,253 $ 1,781,253 Repurchase agreements - long-term 34,681 — — 34,681 34,681 Mortgage loan financing 807,854 — — 838,766 838,766 Borrowings from the FHLB 1,073,500 — — 1,080,354 1,080,354 Senior unsecured notes 1,166,201 — — 1,208,860 1,208,860 $ — $ — $ 4,943,914 $ 4,943,914 (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, 2020 and December 31, 2019 ($ in thousands): Nine Months Ended September 30, Level 3 2020 2019 Balance at January 1, $ 1,695,913 $ 1,385,957 Transfer from level 2 — — Purchases 438,707 1,193,671 Sales (551,676) (533,811) Paydowns/maturities (94,659) (178,402) Amortization of premium/discount (6,406) (9,333) Unrealized gain/(loss) (32,959) 16,813 Realized gain/(loss) on sale(1) (13,075) 10,639 Balance at September 30, $ 1,435,845 $ 1,885,534 (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, 2020 Financial Instrument Carrying Value Valuation Technique Unobservable Input Minimum Weighted Average Maximum CMBS(1) $ 1,379,469 Discounted cash flow Yield (4) 0.59 % 2.46 % 31.64 % Duration (years)(5) 0.00 2.56 6.05 CMBS interest-only(1) 23,035 (2) Discounted cash flow Yield (4) 0.87 % 2.57 % 9.94 % Duration (years)(5) 0.33 2.29 3.21 Prepayment speed (CPY)(5) 100.00 99.60 100.00 GNMA interest-only(3) 1,228 (2) Discounted cash flow Yield (4) — % 3.61 % 9.05 % Duration (years)(5) 0.45 2.51 6.37 Prepayment speed (CPJ)(5) 5.00 14.41 35.00 Agency securities(1) 619 Discounted cash flow Yield (4) 0.78 % 0.89 % 1.48 % Duration (years)(5) 0.00 1.87 2.24 GNMA permanent securities(1) 31,494 Discounted cash flow Yield (4) 2.47 % 3.56 % 6.39 % Duration (years)(5) 1.15 9.81 14.66 Total $ 1,435,845 (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, 2019 Financial Instrument Carrying Value Valuation Technique Unobservable Input Minimum Weighted Average Maximum CMBS(1) $ 1,632,714 Discounted cash flow Yield (3) — % 3.11 % 19.92 % Duration (years)(4) 0.00 1.63 6.87 CMBS interest-only(1) 28,342 (2) Discounted cash flow Yield (3) 1.57 % 3.93 % 7.62 % Duration (years)(4) 0.26 2.47 3.51 Prepayment speed (CPY)(4) 100.00 97.24 100.00 GNMA interest-only(3) 1,851 (2) Discounted cash flow Yield (4) (4.82) % 15.13 % 44.5 % Duration (years)(5) 0.85 2.90 13.69 Prepayment speed (CPJ)(5) 5.00 12.36 35.00 Agency securities(1) 637 Discounted cash flow Yield (4) — % 1.7 % 2.16 % Duration (years)(5) 0.00 2.30 2.92 GNMA permanent securities(1) 32,369 Discounted cash flow Yield (4) 56.56 % 166.79 % 410 % Duration (years)(5) 2.60 3.61 6.49 Total $ 1,695,913 (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. Refer to Note 3, Mortgage Loan Receivables and Note 5, Real Estate and Related Lease Intangibles, Net for disclosure of level 3 inputs. |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2020 | |
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 $3.1 million and $(11.9) million for the three and nine months ended September 30, 2020, respectively. Current income tax expense (benefit) was $0.4 million and $(6.9) million for the three and nine months ended September 30, 2019, respectively. As of September 30, 2020 and December 31, 2019, the Company’s net deferred tax assets (liabilities) were $(8.7) million and $(2.1) 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 $(3.1) million and $6.8 million for the three and nine months ended September 30, 2020, respectively. 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. 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, 2020, the Company has a deferred tax asset of $7.0 million relating to capital losses which it may only use to offset capital gains. These tax attributes will begin to expire if unused in 2022. As the realization of these assets are not more likely than not before their expiration, the Company provided a full valuation allowance against this deferred tax asset. Additionally, as of September 30, 2020, the Company had a deferred tax asset of $1.4 million related to Code Section 163(j) interest expense limitation. As the Company is uncertain if this asset will be realized in the future, the Company provided a full valuation allowance against this deferred tax asset. The Company has historically calculated its tax provision during quarterly reporting periods by applying an annual effective tax rate (“AETR”) for the full year to the income for the reporting period; however, for the three months ended March 31, 2020 and the three and six months ended June 30, 2020, the Company used a discrete effective tax rate method to calculate taxes, given that, based on the projections of income at the time, the Company was unable to determine a reliable AETR. The Company has returned to using an AETR for the full year to income for the current reporting period. The Company’s tax returns are subject to audit by taxing authorities. Generally, as of September 30, 2020, the tax years 2016-2019 remain open to examination by the major taxing jurisdictions in which the Company is subject to taxes. 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. Several of the Company’s subsidiary entities are under New York State audit for tax years 2015-2018. The Company does not expect these audits 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. 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 connection with a New York State audit settlement, the Company collected $2.5 million of indemnities under the acquisition agreements during 2019. 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. In addition, the Company does not believe that it has any tax positions for which it is reasonably possible that it will be required to record a significant liability for unrecognized tax benefits within the next twelve months. Tax Receivable Agreement Upon consummation of the IPO, the Company entered into a Tax Receivable Agreement with the Continuing LCFH Limited Partners. Under the Tax Receivable Agreement the Company generally is required to pay to those Continuing LCFH Limited Partners that exchange their interests in LCFH and Class B shares of the Company for Class A shares of the Company, 85% of the applicable cash savings, if any, in U.S. federal, state and local income tax that the Company realizes (or is deemed to realize in certain circumstances) as a result of (i) the increase in tax basis in its proportionate share of LCFH’s assets that is attributable to the Company as a result of the exchanges and (ii) payments under the Tax Receivable Agreement, including any tax benefits related to imputed interest deemed to be paid by the Company as a result of such agreement. The Company may make future payments under the Tax Receivable Agreement if the tax benefits are realized. The Company 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. As of September 30, 2020 and December 31, 2019, pursuant to the Tax Receivable Agreement, the Company recorded a liability of $1.6 million, which is included in other liabilities in the consolidated balance sheets for Continuing LCFH Limited Partners. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 9 Months Ended |
Sep. 30, 2020 | |
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 was included in other assets in the consolidated balance sheets. On June 22, 2020, the Fund was liquidated and LCAM deregistered with the Securities and Exchange Commission (“SEC”). The Company recognized a realized loss of $0.7 million upon liquidation of the Fund which is included in fee and other income on the consolidated statements of income for the nine months ended September 30, 2020. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2020 | |
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. As of September 30, 2020, the Company had a $1.6 million lease liability and a $1.6 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 $1.7 million and $4.0 million for the three and nine months ended September 30, 2020, respectively, and are included in operating lease income on the Company’s consolidated statements of income. Tenant reimbursements were $1.3 million and $4.6 million for the three and nine months ended September 30, 2019, respectively, and are included in operating lease income on the Company’s consolidated statements of income. Investments in Unconsolidated Joint Ventures We have made investments in various unconsolidated joint ventures. See Note 6, Investment in and Advances to Unconsolidated Joint Ventures for further details of our unconsolidated investments. Our maximum exposure to loss from these investments is limited to the carrying value of our investments. Unfunded Loan Commitments |
SEGMENT REPORTING
SEGMENT REPORTING | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | 19. SEGMENT REPORTING The Company has determined that it has three reportable segments based on how the chief operating decision maker reviews and manages the business. These reportable segments include loans, securities, and real estate. The loans segment includes mortgage loan receivables held for investment (balance sheet loans) and mortgage loan receivables held for sale (conduit loans). The securities segment is composed of all of the Company’s activities related to commercial real estate securities, which include investments in CMBS, U.S. Agency Securities, corporate bonds and equity securities. The real estate segment includes net leased properties, office buildings, student housing portfolios, hotels, industrial buildings, a shopping center and condominium units. Corporate/other includes the Company’s investments in joint ventures, other asset management activities and operating expenses. The Company evaluates performance based on the following financial measures for each segment ($ in thousands): Loans Securities Real Corporate/Other(2) Company Three months ended September 30, 2020 Interest income $ 48,349 $ 6,189 $ 1 $ 82 $ 54,621 Interest expense (16,319) (4,535) (10,221) (25,323) (56,398) Net interest income (expense) 32,030 1,654 (10,220) (25,241) (1,777) (Provision) benefit for loan losses 2,512 — — — 2,512 Net interest income (expense) after provision for loan losses 34,542 1,654 (10,220) (25,241) 735 Operating lease income — — 25,464 — 25,464 Sale of loans, net 1,127 — — — 1,127 Realized gain (loss) on securities — (303) — — (303) Unrealized gain (loss) on Agency interest-only securities — 9 — — 9 Realized gain on sale of real estate, net — — 21,588 — 21,588 Fee and other income 2,515 — — 536 3,051 Net result from derivative transactions 165 95 — — 260 Earnings (loss) from investment in unconsolidated joint ventures — — 447 — 447 Gain (loss) on extinguishment of debt — — — 1,167 1,167 Total other income (loss) 3,807 (199) 47,499 1,703 52,810 Salaries and employee benefits — — — (7,858) (7,858) Operating expenses(3) — — — (3,938) (3,938) Real estate operating expenses — — (8,060) — (8,060) Fee expense (2,465) (50) 39 — (2,476) Depreciation and amortization — — (9,792) (25) (9,817) Total costs and expenses (2,465) (50) (17,813) (11,821) (32,149) Income tax (expense) benefit — — — (14) (14) Segment profit (loss) $ 35,884 $ 1,405 $ 19,466 $ (35,373) $ 21,382 Total assets as of September 30, 2020 $ 2,714,723 $ 1,447,625 $ 1,039,738 $ 1,157,377 $ 6,359,463 Loans Securities Real Corporate/Other(2) Company 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) benefit 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(3) — — — (5,314) (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 December 31, 2019 $ 3,358,861 $ 1,721,305 $ 1,096,514 $ 492,472 $ 6,669,152 Loans Securities Real Corporate/Other(2) Company Nine months ended September 30, 2020 Interest income $ 160,896 $ 27,228 $ 11 $ 1,171 $ 189,306 Interest expense (32,921) (19,090) (30,213) (94,001) (176,225) Net interest income (expense) 127,975 8,138 (30,202) (92,830) 13,081 (Provision) benefit for loan losses (23,343) 3 — — (23,340) Net interest income (expense) after provision for loan losses 104,632 8,141 (30,202) (92,830) (10,259) Operating lease income — — 75,565 — 75,565 Sale of loans, net 1,387 — — — 1,387 Realized gain (loss) on securities — (12,089) — — (12,089) Unrealized gain (loss) on equity securities — (132) — — (132) Unrealized gain (loss) on Agency interest-only securities — 183 — — 183 Realized gain on sale of real estate, net — — 32,116 — 32,116 Fee and other income 6,368 403 25 1,279 8,075 Net result from derivative transactions (11,774) (4,214) — — (15,988) Earnings (loss) from investment in unconsolidated joint ventures — — 1,359 — 1,359 Gain (loss) on extinguishment of debt — — — 22,244 22,244 Total other income (loss) (4,019) (15,849) 109,065 23,523 112,720 Salaries and employee benefits — — — (31,880) (31,880) Operating expenses(3) — — — (15,957) (15,957) Real estate operating expenses — — (22,041) (22,041) Fee expense (5,129) (183) (580) — (5,892) Depreciation and amortization — — (29,568) (74) (29,642) Total costs and expenses (5,129) (183) (52,189) (47,911) (105,412) Income tax (expense) benefit — — — 5,078 5,078 Segment profit (loss) $ 95,484 $ (7,891) $ 26,674 $ (112,140) $ 2,127 Total assets as of September 30, 2020 $ 2,714,723 $ 1,447,625 $ 1,039,738 $ 1,157,377 $ 6,359,463 Loans Securities Real Corporate/Other(2) Company 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) benefit 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(3) — — — (16,727) (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 December 31, 2019 $ 3,358,861 $ 1,721,305 $ 1,096,514 $ 492,472 $ 6,669,152 (1) Includes the Company’s investment in unconsolidated joint ventures that held real estate of $49.2 million and $48.4 million as of September 30, 2020 and December 31, 2019, 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 $61.6 million as of September 30, 2020 and December 31, 2019, respectively, the Company’s deferred tax asset (liability) of $(8.7) million and $(2.1) million as of September 30, 2020 and December 31, 2019, respectively, and the Company’s senior unsecured notes of $1.7 billion and $1.2 billion as of September 30, 2020 and December 31, 2019, respectively. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Sep. 30, 2020 | |
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 additional disclosure is necessary. |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
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, 2019, which are included in the 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 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. |
Provision for Loan Losses | Provision for Loan Losses The provision for loan losses reflects the Company’s estimate of loan losses inherent in the loan portfolio as of the balance sheet date. The provision for loan losses includes a portfolio-based, current expected credit loss (“CECL”) component and an asset-specific component. In compliance with the new CECL reporting requirements, the Company has supplemented the existing credit monitoring and management processes with additional processes to support the calculation of the CECL reserves. As part of that effort, the Company has engaged a third-party service provider to provide market data and a credit loss model. The credit loss model is a forward-looking, econometric, commercial real estate (“CRE”) loss forecasting tool. It is comprised of a probability of default (“PD”) model and a loss given default (“LGD”) model that, layered together with user’s loan-level data, selected forward-looking macroeconomic variables, and pool-level mean loss rates, produces life of loan expected losses (“EL”) at the loan and portfolio level. The asset-specific reserve component relates to reserves for losses on individually impaired loans. The Company evaluates each loan for impairment at least quarterly. Impairment occurs when it is deemed probable that the Company will not be able to collect all amounts due according to the contractual terms of the loan. If the loan is considered to be impaired, an allowance is recorded to reduce the carrying value of the loan to the present value of the expected future cash flows discounted at the loan’s effective rate or the fair value of the collateral, less the estimated costs to sell, if recovery of the Company’s investment is expected solely from the collateral. The Company generally will use the direct capitalization rate valuation methodology or the sales comparison approach to estimate the fair value of the collateral for such loans and in certain cases will obtain external appraisals. Determining fair value of the collateral may take into account a number of assumptions including, but not limited to, cash flow projections, market capitalization rates, discount rates and data regarding recent comparable sales of similar properties. Such assumptions are generally based on current market conditions and are subject to economic and market uncertainties. The Company’s 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/sponsor on a loan-by-loan basis. 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 submarket in which the collateral property is located. Such impairment analyses are completed and reviewed by asset management and underwriting 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 and ultimately presented to management for approval. A loan is also considered impaired if its terms are modified in a troubled debt restructuring (“TDR”). A TDR occurs when a concession is granted and the debtor is experiencing financial difficulties. Impairments on TDR loans are generally measured based on the present value of expected future cash flows discounted at the effective interest rate of the original loans. 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 interests 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 the CECL reserve. 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. The Company designates non-accrual loans at such time as (i) loan payments become 90-days past due or (ii) in the opinion of the Company, it is probable the Company will be unable to collect all amounts due according to the contractual terms of the loan. Income recognition will be suspended when a loan is designated non-accrual and resumed only when the suspended loan becomes contractually current and performance is demonstrated to have resumed. Any interest received for loans on non-accrual status will be applied as a reduction to the unpaid principal balance. A loan will be written off when it is no longer realizable and legally discharged. |
Recent Accounting Pronouncements | Recently Adopted Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-13 Financial Instruments - Credit Losses - Measurement of Credit Losses on Financial Instruments (Topic 326) (“ASU 2016-13”) and 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”), collectively, the “CECL Standard.” These updates change how entities measure potential credit losses for most financial assets and certain other instruments that are not measured at fair value. The CECL Standard replaced the “incurred loss” approach under previous guidance with an “expected loss” model for instruments measured at amortized cost. The net carrying value of an asset under the CECL Standard is intended to represent the amount expected to be collected on such asset and requires entities to deduct allowances for potential losses on mortgage loan receivables held for investment, net and held-to-maturity debt securities. The Company will continue to record asset-specific reserves consistent with our existing accounting policy. In addition, the Company will now record a general reserve in accordance with the CECL Standard on the remainder of the loan portfolio (“CECL Reserve”). At adoption, on January 1, 2020, the Company recorded a CECL Reserve of $11.6 million, which equated to 0.36% of $3.2 billion carrying value of its held for investment loan portfolio. This reserve excluded three loans that previously had an aggregate of $14.7 million of asset-specific reserves and a carrying value of $39.8 million as of January 1, 2020. Upon adoption, the aggregated CECL Reserve reduced total shareholder’s equity by $5.8 million (or approximately $0.05 of book value per share of common stock). 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. The adoption of ASU 2018-13 had no material impact on the Company’s consolidated financial statements. 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 adoption of ASU 2018-17 had no material impact on the Company’s 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. The adoption of ASU 2019-04 had no material impact on the Company’s consolidated financial statements. In March 2020, the FASB issued ASU 2020-03, Codification Improvements to Financial Instruments, (“ASU 2020-03”). ASU 2020-03 improves various financial instruments topics, including the CECL Standard. ASU 2020-03 includes seven different issues that describe the areas of improvement and the related amendments to GAAP, intended to make the standards easier to understand and apply by eliminating inconsistencies and providing clarifications. The amendments related to Issue 1, Issue 2, Issue 4 and Issue 5 were effective upon issuance of ASU 2020-03. The amendments related to Issue 3, Issue 6 and Issue 7 were effective for the Company beginning on January 1, 2020. The adoption of ASU 2020-03 had no material impact on the Company’s consolidated financial statements. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, (“ASU 2020-04”). ASU 2020-04 provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions that reference the London Interbank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued because of reference rate reform. ASU 2020-04 is effective upon issuance of ASU 2020-04 for contract modifications and hedging relationships on a prospective basis. While the Company is currently assessing the impact of ASU 2020-04, the Company does not expect the adoption to have a material impact on its consolidated financial statements. Recent Accounting Pronouncements Pending Adoption In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 815), (“ASU 2019-12”). ASU 2019-12 simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. ASU 2019-12 also improves the consistent application of, and simplifies, GAAP for other areas of Topic 740 by clarifying and amending existing guidance. The standard is effective for all entities for financial statements issued for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. Early adoption is permitted. The Company does not expect the adoption of ASU 2019-12 to have a material impact on its consolidated financial statements. In October 2020, the FASB issued ASU 2020-08, Codification Improvements to Subtopic 310-20, Receivables–Nonrefundable Fees and Other Costs, (“ASU 2020-08”) . This ASU clarifies that an entity should reevaluate whether a callable debt security is within the scope of ASC paragraph 310-20-35-33 for each reporting period. The guidance is effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. Early application is not permitted. All entities should apply ASU 2020-08 on a prospective basis as of the beginning of the period of adoption for existing or newly purchased callable debt securities. The Company is assessing ASU 2020-08 and its impact its accounting and disclosures. 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, 2020 | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Abstract] | |
Schedule of mortgage loan receivables | Outstanding Carrying Weighted Remaining Mortgage loan receivables held for investment, net, at amortized cost: Mortgage loans held by consolidated subsidiaries: First mortgage loans $ 2,622,120 $ 2,608,933 6.59 % 1.03 Mezzanine loans 122,604 122,321 10.90 % 2.65 Total mortgage loans held by consolidated subsidiaries 2,744,724 2,731,254 6.81 % 1.10 Allowance for credit losses N/A (47,084) Total mortgage loan receivables held for investment, net, at amortized cost 2,744,724 2,684,170 Mortgage loan receivables held for sale: First mortgage loans 30,513 30,553 4.05 % 9.43 Total $ 2,775,237 $ 2,714,723 6.99 % 1.22 (1) September 30, 2020 LIBOR rates are used to calculate weighted average yield for floating rate loans. Outstanding Carrying Weighted Remaining Mortgage loan receivables held for investment, net, at amortized cost: Mortgage loans held by consolidated subsidiaries: First mortgage loans $ 3,147,275 $ 3,127,173 6.77 % 1.35 Mezzanine loans 130,322 129,863 10.97 % 3.26 Total mortgage loans held by consolidated subsidiaries 3,277,597 3,257,036 6.94 % 1.43 Allowance for credit losses N/A (20,500) Total mortgage loan receivables held for investment, net, at amortized cost 3,277,597 3,236,536 Mortgage loan receivables held for sale: First mortgage loans 122,748 122,325 4.20 % 9.99 Total $ 3,400,345 $ 3,358,861 6.88 % 1.75 (1) December 31, 2019 LIBOR rates are used to calculate weighted average yield for floating rate loans. |
Summary of mortgage loan receivables by loan type | For the nine months ended September 30, 2020 and 2019, 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 Provision for current expected credit loss Mortgage loan Balance, December 31, 2019 $ 3,257,036 $ (20,500) $ 122,325 Origination of mortgage loan receivables 343,216 — 212,845 Repayment of mortgage loan receivables (675,281) — (369) Proceeds from sales of mortgage loan receivables (172,412) — (312,300) Non-cash disposition of loans via foreclosure(1) (27,107) — — Sale of loans, net (6,665) — 8,052 Accretion/amortization of discount, premium and other fees 12,467 — — Release of asset-specific loan loss provision via foreclosure(1) — 2,000 — Provision for current expected credit loss (implementation impact)(2) — (4,964) — Provision for current expected credit loss, net (impact to earnings)(2) — (15,620) — Asset-specific provision for loan loss reserve — (8,000) — Balance, September 30, 2020 $ 2,731,254 $ (47,084) $ 30,553 (1) Refer to Note 5 Real Estate and Related Lease Intangibles, Net for further detail on foreclosure of real estate. (2) During the nine months ended September 30, 2020, the initial impact of the implementation of the CECL accounting standard as of January 1, 2020 is recorded against retained earnings. Subsequent remeasurement thereafter, including the period to date change for the nine months ended September 30, 2020, is accounted for as provision for current expected credit loss in the consolidated statements of income. 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 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 loan 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/(release of) loan loss reserves — — (600) — Balance, September 30, 2019 $ 3,231,443 $ — $ (18,500) $ 174,214 (1) We sell certain loans into securitizations; however, for a transfer of financial assets to be considered a sale, the transfer must meet the sale criteria of ASC 860 under which the Company must surrender control over the transferred assets which must qualify as recognized financial assets at the time of transfer. The assets must be isolated from the Company, even in bankruptcy or other receivership, the purchaser must have the right to pledge or sell the assets transferred and the Company may not have an option or obligation to reacquire the assets. If the sale criteria are not met, the transfer is considered to be a secured borrowing, the assets remain on the Company’s consolidated balance sheets and the sale proceeds are recognized as a liability. During the three months ended March 31, 2019, the Company reclassified from mortgage loan receivables held for sale to mortgage loans transferred but not considered sold, at amortized cost, one loan with an outstanding face amount of $15.4 million, a book value of $15.5 million (fair value at the date of reclassification) and a remaining maturity of 9.8 years, which was sold to the WFCM 2019-C49 securitization trust. Subsequent to March 31, 2019, the controlling loan interest was sold to the UBS 2019-C16 securitization trust, and as a result, the loan previously sold during the three months ended March 31, 2019 was accounted for as a sale during the nine months ended September 30, 2019. (2) Refer to Note 5, Real Estate and Related Lease Intangibles, Net for further detail on real estate acquired via foreclosure. |
Schedule of provision for loan losses | Allowance for Credit Losses and Non-Accrual Status ($ in thousands) Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Allowance for credit losses at beginning of period $ 49,102 $ 18,500 $ 20,500 $ 17,900 Provision for current expected credit loss (implementation impact) — — 4,964 — Provision for current expected credit loss, net (impact to earnings) (2,018) — 15,620 600 Additional asset-specific reserve — — 8,000 — Foreclosure of loans subject to asset-specific reserve — — (2,000) — Allowance for credit losses at end of period $ 47,084 $ 18,500 $ 47,084 $ 18,500 September 30, 2020 December 31, 2019 Carrying value of loans on non-accrual status, net of asset-specific reserve $ 201,517 (1) $ 86,025 (2) (1) Represents two of the Company’s loans, which were originated simultaneously as part of a single transaction and had a combined carrying value of $24.2 million, two loans with a combined carrying value of $27.8 million, one loan with a carrying value of $61.5 million, one loan with a carrying value of $3.6 million, one loan with a carrying value of $44.9 million and one loan with a carrying value of $39.5 million as further discussed below. (2) Represents two of the Company’s loans, which were originated simultaneously as part of a single transaction and had a combined carrying value of $24.2 million, one loan with a carrying value of $0.4 million and one loan with a carrying value of $61.5 million, as further discussed below. |
Schedule of individually impaired loans | The Company has concluded that none of its loans, other than the four loans discussed below, are individually impaired as of September 30, 2020. Loan Portfolio by Geographic Region, Property Type and Vintage ($ in thousands) Amortized Cost Geographic Region Northeast $ 779,956 Southwest 575,969 South 485,643 Midwest 469,497 West 343,909 Subtotal loans 2,654,974 Individually impaired loans(1) 76,280 Total loans $ 2,731,254 Management’s method for monitoring credit is the performance of a loan. A loan is impaired or not impaired based on the expectation that all amounts contractually due under a loan will be collected when due. The primary credit quality indicator management utilizes to assess its current expected credit loss reserve is by viewing Ladder’s loan portfolio by collateral type. The following table summarizes the assessed amortized cost of the loan portfolio by property type ($ in thousands). Vintage Property Type 2020 2019 2018 2017 2016 and Earlier Total Multifamily $ 65,380 $ 299,648 $ 66,006 $ 24,562 $ — $ 455,596 Office — 67,317 137,530 67,378 123,639 395,864 Hospitality 52,971 203,285 389,172 150,585 51,935 847,948 Mixed Use 52,572 101,571 — 14,367 — 168,510 Retail — 134,826 19,786 — 65,784 220,396 Other 52,030 131,087 79,813 — — 262,930 Industrial 52,046 116,579 — — 6,470 175,095 Manufactured Housing 4,549 57,261 11,710 — 3,966 77,486 Self-Storage — 35,960 15,189 — — 51,149 Subtotal loans 279,548 1,147,534 719,206 256,892 251,794 2,654,974 Individually Impaired loans (1) — — 4,143 — 72,137 76,280 Total loans $ 279,548 $ 1,147,534 $ 723,349 $ 256,892 $ 323,931 $ 2,731,254 (1) Included in individually impaired loans are two loans, which were originated in 2016 simultaneously as part of a single transaction with a combined amortized cost of $26.9 million, collateralized by a mixed use property located in the Northeast region, one loan, which was originated in 2016 and subsequently restructured into two loans in 2018, with a combined amortized cost of $45.3 million, collateralized by a mixed use property located in the Northeast region, and one loan, originated in 2018, with a amortized cost of $4.1 million, collateralized by a hotel located in the Midwest region. The above individually impaired loans’ amortized cost basis excludes asset-specific provisions totaling $20.7 million. |
REAL ESTATE SECURITIES (Tables)
REAL ESTATE SECURITIES (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of securities which are classified as available-for-sale | The following is a summary of the Company’s securities at September 30, 2020 and December 31, 2019 ($ in thousands): September 30, 2020 Gross Unrealized Weighted Average Asset Type Outstanding Amortized Cost Basis/Purchase Price Gains Losses Carrying # of Rating (1) Coupon % Yield % Remaining CMBS(2) $ 1,420,752 $ 1,420,537 $ 1,018 $ (30,993) $ 1,390,562 (3) 102 AAA 1.49 % 1.54 % 2.10 CMBS interest-only(2)(4) 1,506,152 23,063 723 (45) 23,741 (5) 13 AAA 0.44 % 3.32 % 2.28 GNMA interest-only(4)(6) 87,917 1,175 216 (163) 1,228 11 AA+ 0.44 % 3.90 % 3.27 Agency securities(2) 595 603 16 — 619 2 AA+ 2.57 % 1.66 % 1.40 GNMA permanent securities(2) 30,542 30,662 832 — 31,494 6 AA+ 3.88 % 3.49 % 2.20 Total debt securities $ 3,045,958 $ 1,476,040 $ 2,805 $ (31,201) $ 1,447,644 134 0.96 % 1.62 % 2.11 Provision for current expected credit losses N/A — — (19) (19) Total real estate securities $ 3,045,958 $ 1,476,040 $ 2,805 $ (31,220) $ 1,447,625 134 (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 $11.1 million of restricted securities which are designated as risk retention securities under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, (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 $0.7 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, 2019 Gross Unrealized Weighted Average Asset Type Outstanding Amortized Gains Losses Carrying # of Rating (1) Coupon % Yield % Remaining CMBS(2) $ 1,640,597 $ 1,640,905 $ 4,337 $ (920) $ 1,644,322 (3) 125 AAA 3.06 % 3.08 % 2.41 CMBS interest-only(2)(4) 1,559,160 28,553 630 (37) 29,146 (5) 15 AAA 0.60 % 3.04 % 2.53 GNMA interest-only(4)(6) 109,783 1,982 123 (254) 1,851 11 AA+ 0.49 % 4.59 % 2.77 Agency securities(2) 629 640 1 (4) 637 2 AA+ 2.65 % 1.73 % 1.83 GNMA permanent securities(2) 31,461 31,681 688 — 32,369 6 AA+ 3.91 % 3.17 % 1.93 Total debt securities $ 3,341,630 $ 1,703,761 $ 5,779 $ (1,215) $ 1,708,325 159 1.84 % 3.06 % 2.39 Equity securities(7) N/A 12,848 292 (160) 12,980 2 N/A N/A N/A N/A Total real estate securities $ 3,341,630 $ 1,716,609 $ 6,071 $ (1,375) $ 1,721,305 161 (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 $0.8 million of restricted securities which are designated as risk retention securities under the Dodd-Frank Act and are therefore subject to transfer restrictions over the term of the securitization trust and are classified as held-to-maturity and reported at amortized cost. (6) Agency interest-only securities are recorded at fair value with changes in fair value recorded in current period earnings. The Company’s Agency interest-only securities are considered to be hybrid financial instruments that contain embedded derivatives. As a result, the Company accounts for them as hybrid instruments in their entirety at fair value with changes in fair value recognized in unrealized gain (loss) on Agency interest-only securities in the consolidated statements of income in accordance with ASC 815. (7) The Company has elected to account for equity securities at fair value with changes in fair value recorded in current period earnings. |
Schedule of fair value of the Company's securities by remaining maturity based upon expected cash flows | The following is a breakdown of the carrying value of the Company’s debt securities by remaining maturity based upon expected cash flows at September 30, 2020 and December 31, 2019 ($ in thousands): September 30, 2020 Asset Type Within 1 year 1-5 years 5-10 years After 10 years Total CMBS $ 289,889 $ 1,052,832 $ 47,841 $ — $ 1,390,562 CMBS interest-only 1,889 21,852 — — 23,741 GNMA interest-only 64 886 278 — 1,228 Agency securities — 619 — — 619 GNMA permanent securities 137 31,357 — — 31,494 Total debt securities $ 291,979 $ 1,107,546 $ 48,119 $ — $ 1,447,644 December 31, 2019 Asset Type Within 1 year 1-5 years 5-10 years After 10 years Total CMBS $ 177,193 $ 1,389,392 $ 77,737 $ — $ 1,644,322 CMBS interest-only 1,439 27,707 — — 29,146 GNMA interest-only 91 1,504 256 — 1,851 Agency securities — 637 — — 637 GNMA permanent securities 416 31,953 — — 32,369 Total debt securities $ 179,139 $ 1,451,193 $ 77,993 $ — $ 1,708,325 |
REAL ESTATE AND RELATED LEASE_2
REAL ESTATE AND RELATED LEASE INTANGIBLES, NET (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
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, 2020 December 31, 2019 Land $ 220,465 $ 209,955 Building 834,630 883,005 In-place leases and other intangibles 157,011 161,203 Less: Accumulated depreciation and amortization (221,523) (206,082) Real estate and related lease intangibles, net $ 990,583 $ 1,048,081 Below market lease intangibles, net (other liabilities) $ (37,500) $ (39,067) |
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, 2020 2019 2020 2019 Depreciation expense(1) $ 8,138 $ 7,394 $ 24,571 $ 22,776 Amortization expense 1,679 1,612 5,071 6,342 Total real estate depreciation and amortization expense $ 9,817 $ 9,006 $ 29,642 $ 29,118 (1) Depreciation expense on the consolidated statements of income also includes $25 thousand and $74 thousand of depreciation on corporate fixed assets for the three and nine months ended September 30, 2020, respectively. Depreciation expense on the consolidated statements of income also includes $24 thousand and $74 thousand for the three and nine months ended September 30, 2019, respectively. |
Schedule of lease intangible assets | The Company’s intangible assets are comprised of in-place leases, above market leases and other intangibles. The following tables present additional detail related to our intangible assets ($ in thousands): September 30, 2020 December 31, 2019 Gross intangible assets(1) $ 157,010 $ 161,203 Accumulated amortization 64,260 62,773 Net intangible assets $ 92,750 $ 98,430 (1) Includes $4.3 million and $4.5 million of unamortized above market lease intangibles which are included in real estate and related lease intangibles, net on the consolidated balance sheets as of September 30, 2020 and December 31, 2019, respectively. The following table presents increases/reductions in operating lease income recorded by the Company ($ in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Reduction in operating lease income for amortization of above market lease intangibles acquired $ (92) $ (94) $ (275) $ (727) Increase in operating lease income for amortization of below market lease intangibles acquired 624 564 1,995 1,594 |
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, 2020 ($ in thousands): Period Ending December 31, Adjustment to Operating Lease Income Amortization Expense 2020 (last 3 months) $ 268 $ 1,491 2021 1,070 5,504 2022 1,070 5,504 2023 1,070 5,504 2024 1,070 5,504 Thereafter 28,692 64,932 Total $ 33,240 $ 88,439 |
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, 2020 ($ in thousands): Period Ending December 31, Amount 2020 (last 3 months) $ 31,209 2021 72,872 2022 64,975 2023 64,206 2024 63,220 Thereafter 495,607 Total $ 792,089 |
Schedule of real estate properties acquired | During the nine months ended September 30, 2020, 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 Aggregate purchases of net leased real estate $ 6,239 100.0% Real estate acquired via foreclosure March 2020 Diversified Los Angeles, CA 21,535 100.0% June 2020 Diversified Winston Salem, NC 3,900 100.0% Total real estate acquired via foreclosure 25,435 Total real estate acquisitions $ 31,674 (1) Properties were consolidated as of acquisition date. The Company allocates purchase consideration based on relative fair values, and real estate acquisition costs are capitalized as a component of the cost of the assets acquired for asset acquisitions. During the nine months ended September 30, 2020, all acquisitions were determined to be asset acquisitions. The purchase prices were allocated to the asset acquisitions during the nine months ended September 30, 2020, as follows ($ in thousands): Purchase Price Allocation Land $ 23,524 Building 7,244 Intangibles 1,201 Below Market Lease Intangibles (295) Total purchase price $ 31,674 The weighted average amortization period for intangible assets acquired during the nine months ended September 30, 2020 was 39.8 years. The Company recorded $0.1 million and $0.3 million in revenues from its 2020 acquisitions for the three and nine months ended September 30, 2020, respectively, which is included in its consolidated statements of income. The Company recorded $0.5 million and $(0.4) million in earnings (losses) from its 2020 acquisitions for the three and nine months ended September 30, 2020, respectively, which is included in its consolidated statements of income. During the nine months ended September 30, 2019, the Company acquired the following properties ($ in thousands): Acquisition Date Type Primary Location(s) Purchase Price/Fair Value on the Date of Foreclosure Ownership Interest (1) Purchases of real estate Aggregate purchases of net leased real estate $ 13,904 100.0% 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 |
Schedule of properties sold | The Company sold the following properties during the nine months ended September 30, 2020 ($ in thousands): Sales Date Type Primary Location(s) Net Sales Proceeds Net Book Value Realized Gain/(Loss)(1) Properties Units Sold Units Remaining Various Condominium Miami, FL $ 1,199 $ 1,174 $ 25 — 4 2 March 2020 Diversified Richmond, VA 22,527 14,829 7,698 7 — — March 2020 Diversified Richmond, VA 6,932 4,109 2,823 1 — — August 2020 Net Lease Bellport, NY 19,434 15,012 4,422 1 — — September 2020 Diversified Lithia Springs, GA 39,491 23,187 16,304 1 — — September 2020 Diversified Winston Salem, NC 4,647 3,803 844 1 — — Totals $ 94,230 $ 62,114 $ 32,116 (1) Realized gain (loss) on the sale of real estate, net on the consolidated statements of income also includes $0.1 million of realized gain (loss) on the disposal of fixed assets for the nine months ended September 30, 2020. The Company sold the following properties during the nine months ended September 30, 2019 ($ 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 |
INVESTMENT IN AND ADVANCES TO_2
INVESTMENT IN AND ADVANCES TO UNCONSOLIDATED JOINT VENTURES (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
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, 2020 and December 31, 2019 ($ in thousands): Entity September 30, 2020 December 31, 2019 Grace Lake JV, LLC $ 3,732 $ 3,047 24 Second Avenue Holdings LLC 45,423 45,386 Investment in unconsolidated joint ventures $ 49,155 $ 48,433 |
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, 2020 and 2019 ($ in thousands): Three Months Ended September 30, Nine Months Ended September 30, Entity 2020 2019 2020 2019 Grace Lake JV, LLC $ 236 $ 517 $ 685 $ 1,549 24 Second Avenue Holdings LLC 211 577 674 2,068 Earnings (loss) from investment in unconsolidated joint ventures $ 447 $ 1,094 $ 1,359 $ 3,617 |
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, 2020 and December 31, 2019 ($ in thousands): September 30, 2020 December 31, 2019 Total assets $ 114,110 $ 118,727 Total liabilities 76,477 78,762 Partners’/members’ capital $ 37,633 $ 39,965 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 three and nine months ended September 30, 2020 and 2019 ($ in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Total revenues $ 4,339 $ 3,915 $ 13,109 $ 14,945 Total expenses 3,458 4,595 10,882 12,029 Net income (loss) $ 881 $ (680) $ 2,227 $ 2,916 |
DEBT OBLIGATIONS, NET (Tables)
DEBT OBLIGATIONS, NET (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of debt obligations | The details of the Company’s debt obligations at September 30, 2020 and December 31, 2019 are as follows ($ in thousands): September 30, 2020 Debt Obligations Committed Financing Debt Obligations Outstanding Committed but Unfunded Interest Rate at September 30, 2020(1) Current Term Maturity Remaining Extension Options Eligible Collateral Carrying Amount of Collateral Fair Value of Collateral Committed Loan Repurchase Facility(2) $ 500,000 $ 114,679 $ 385,321 1.9% — 2.15% 12/19/2022 (3) (4) $ 179,523 $ 179,523 Committed Loan Repurchase Facility 250,000 — 250,000 —% — —% 2/26/2021 (5) (6) — — Committed Loan Repurchase Facility 300,000 141,750 158,250 1.9% — 2.9% 12/19/2020 (7) (8) 183,851 183,851 Committed Loan Repurchase Facility 300,000 41,292 258,708 1.94% — 2.19% 11/6/2022 (9) (4) 76,193 76,193 Committed Loan Repurchase Facility 100,000 38,158 61,842 2.28% — 2.4% 12/31/2022 (10) (4) 64,711 64,752 Committed Loan Repurchase Facility 100,000 17,901 82,099 3.5% — 3.5% 3/24/2021 (11) (12) 30,600 30,600 Total Committed Loan Repurchase Facilities 1,550,000 353,780 1,196,220 534,878 534,919 Committed Securities Repurchase Facility(2) 785,321 352,197 433,124 0.86% — 2.41% 12/23/2021 N/A (13) 418,604 418,604 Uncommitted Securities Repurchase Facility N/A (13) 470,989 N/A (14) 0.91% — 3.5% 10/2020 - 12/2020 N/A (13) 583,353 583,353 (15) Total Repurchase Facilities 1,950,000 1,176,966 1,244,023 1,536,835 1,536,876 Revolving Credit Facility 266,430 266,430 — 3.15% — 3.16% 2/11/2021 (16) N/A (17) N/A (17) N/A (17) Mortgage Loan Financing 769,968 769,968 — 3.75% — 6.75% 2020 - 2030(17) N/A (19) 919,286 1,136,208 (20) Secured Financing Facility 206,350 190,582 (21) — 10.75% — 10.75% 5/6/2023 N/A (22) 335,674 336,055 CLO Debt 285,040 281,625 (23) — 5.5% — 5.5% 5/16/2024 N/A (24) 434,519 434,519 Borrowings from the FHLB 1,500,000 326,000 1,174,000 0.41% — 3% 2020 - 2024 N/A (24) 473,556 477,407 (25) Senior Unsecured Notes 1,716,994 1,702,939 (26) — 4.25% — 5.88% 2021 - 2027 N/A N/A (27) N/A (27) N/A (27) Total Debt Obligations, Net $ 6,694,782 $ 4,714,510 $ 2,418,023 $ 3,699,870 $ 3,921,065 (1) September 2020 LIBOR rates are used to calculate interest rates for floating rate debt. (2) The combined committed amounts for the loan repurchase facility and the securities repurchase facility total $900.0 million, with maximum capacity on the loan repurchase facility of $500.0 million, and maximum capacity on the securities repurchase facility of $900.0 million less outstanding commitments on the loan repurchase facility. (3) Two additional 12-month periods at Company’s option. No new advances are permitted after the initial maturity date. (4) First mortgage commercial real estate loans and senior and pari passu interests therein. It does not include the real estate collateralizing such loans. (5) Three additional 12-month periods at Company’s option. (6) First mortgage commercial real estate loans. It does not include the real estate collateralizing such loans. (7) Three additional 364-day periods. (8) 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. (9) One additional 12-month extension period and two additional 6-month extension periods at Company’s option. (10) Two additional 12-month extension periods at Company’s option. No new advances are permitted after the initial maturity date. (11) 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. (12) First mortgage, junior and mezzanine commercial real estate loans, and certain senior and/or pari passu interests therein. (13) Commercial real estate securities. It does not include the real estate collateralizing such securities. (14) Represents uncommitted securities repurchase facilities for which there is no committed amount subject to future advances. (15) Includes $2.2 million of restricted securities under the risk retention rules of the Dodd-Frank Act. These securities are accounted for as held-to-maturity and recorded at amortized cost basis. (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 $8.5 million and an unamortized discount of $7.3 million related to the Purchase Right (described in detail under Secured Financing Facility below) at September 30, 2020. (22) First mortgage commercial real estate loans. Substitution of collateral and conversion of loan collateral to mortgage collateral are permitted with Lender’s approval. (23) Presented net of unamortized debt issuance costs of $3.4 million at September 30, 2020. (24) 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. (25) Includes $9.4 million of restricted securities under the risk retention rules of the Dodd-Frank Act. These securities are accounted for as held-to-maturity and recorded at amortized cost basis. (26) Presented net of unamortized debt issuance costs of $14.1 million at September 30, 2020. (27) The obligations under the senior unsecured notes are guaranteed by the Company and certain of its subsidiaries. December 31, 2019 Debt Obligations Committed Financing Debt Obligations Outstanding Committed but Unfunded Interest Rate at December 31, 2019(1) Current Term Maturity Remaining Extension Options Eligible Collateral Carrying Amount of Collateral Fair Value of Collateral Committed Loan Repurchase Facility $ 600,000 $ 183,828 $ 416,172 3.24% — 3.74% 12/19/2022 (2) (3) $ 287,974 $ 288,210 Committed Loan Repurchase Facility 350,000 70,697 279,303 3.71% — 3.81% 5/24/2020 (4) (5) 101,590 103,868 Committed Loan Repurchase Facility 300,000 248,182 51,818 3.49% — 3.74% 12/19/2020 (6) (7) 382,778 382,778 Committed Loan Repurchase Facility 300,000 98,678 201,322 3.50% — 3.75% 11/6/2022 (8) (3) 175,000 175,270 Committed Loan Repurchase Facility 100,000 9,952 90,048 3.96% — 3.99% 1/3/2023 (9) (3) 75,628 75,813 Committed Loan Repurchase Facility 100,000 90,927 9,073 3.74% — 3.80% 12/24/2020 (10) (11) 126,311 126,311 Total Committed Loan Repurchase Facilities 1,750,000 702,264 1,047,736 1,149,281 1,152,250 Committed Securities Repurchase Facility 400,000 42,751 357,249 2.50% — 2.56% 12/23/2021 N/A (12) 52,691 52,691 Uncommitted Securities Repurchase Facility N/A (12) 1,070,919 N/A (13) 2.17% — 3.54% 1/2020 - 3/2020 N/A (12) 1,188,440 1,188,440 (14) Total Repurchase Facilities 2,150,000 1,815,934 1,404,985 2,390,412 2,393,381 Revolving Credit Facility 266,430 — 266,430 NA 2/11/2020 (15) N/A (16) N/A (16) N/A (16) Mortgage Loan Financing 812,606 812,606 — 3.75% — 6.75% 2020 - 2029(17) N/A (18) 988,857 1,192,106 (19) Borrowings from the FHLB 1,945,795 1,073,500 872,295 1.47% — 2.95% 2020 - 2024 N/A (20) 1,107,188 1,113,811 (21) Senior Unsecured Notes 1,166,201 1,157,833 (22) — 5.25% — 5.88% 2021 - 2025 N/A N/A (23) N/A (23) N/A (23) Total Debt Obligations $ 6,341,032 $ 4,859,873 $ 2,543,710 $ 4,486,457 $ 4,699,298 (1) December 31, 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) Three additional 364-day periods. (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) Two additional 12-month extension periods 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 $2.2 million of restricted securities under the risk retention rules of the Dodd-Frank Act. These securities are accounted for as held-to-maturity and recorded at amortized cost basis. (15) Four 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) First mortgage commercial real estate loans and pari passu interests therein. It does not include the real estate collateralizing such loans. (21) 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. (22) Includes $9.9 million of restricted securities under the risk retention rules of the Dodd-Frank Act. These securities are accounted for as held-to-maturity and recorded at amortized cost basis. (23) Presented net of unamortized debt issuance costs of $8.4 million at December 31, 2019. (24) The obligations under the senior unsecured notes are guaranteed by the Company and certain of its subsidiaries. |
Schedule of contractual payments under all borrowings by maturity | The following schedule reflects the Company’s contractual payments under all borrowings by maturity ($ in thousands): Period ending December 31, Borrowings by 2020 (last 3 months) $ 919,876 2021 914,964 2022 622,297 2023 351,620 2024 580,986 Thereafter 1,353,554 Subtotal 4,743,297 Debt issuance costs included in senior unsecured notes (14,055) Debt issuance costs included in secured financing facility (8,514) Discount on secured financing facility related to Purchase Right (7,254) Debt issuance costs included in CLO debt (3,416) Debt issuance costs included in mortgage loan financing (393) Premiums included in mortgage loan financing(2) 4,845 Total $ 4,714,510 (1) Contractual payments under current maturities, some of which are subject to extensions. The maturities listed above for 2020 (last 3 months) 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, 2020. |
DERIVATIVE INSTRUMENTS (Tables)
DERIVATIVE INSTRUMENTS (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
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, 2020 and December 31, 2019 ($ in thousands): September 30, 2020 Fair Value Remaining Contract Type Notional Asset(1) Liability(1) Caps 1 Month LIBOR $ 69,571 $ — $ — 0.61 Futures 5-year Swap 24,400 164 — 0.25 10-year Swap 42,400 285 — 0.25 Total futures 66,800 449 — Total derivatives $ 136,371 $ 449 $ — (1) Shown as derivative instruments, at fair value, in the accompanying consolidated balance sheets. December 31, 2019 Fair Value Remaining Contract Type Notional Asset(1) Liability(1) Caps 1Month LIBOR $ 69,571 $ — $ — 0.36 Futures 5-year Swap 46,000 158 — 0.25 10-year Swap 149,800 516 — 0.25 5-year U.S. Treasury Note 1,100 4 — 0.25 Total futures 196,900 678 — Credit Derivatives S&P 500 Put Options 143,300 15 — 0.05 Total credit derivatives 143,300 15 — Total derivatives $ 409,771 $ 693 $ — (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, 2020 and 2019 ($ in thousands): Three Months Ended September 30, 2020 Nine Months Ended September 30, 2020 Unrealized Realized Net Result Unrealized Realized Net Result Contract Type Futures $ 69 $ 191 $ 260 $ (229) $ (16,081) $ (16,310) Credit Derivatives — — — 111 211 322 Total $ 69 $ 191 $ 260 $ (118) $ (15,870) $ (15,988) Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 Unrealized Realized Net Result Unrealized Realized Net Result 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) |
OFFSETTING ASSETS AND LIABILI_2
OFFSETTING ASSETS AND LIABILITIES (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Offsetting [Abstract] | |
Schedule of offsetting of financial assets | As of September 30, 2020 Offsetting of Financial Assets and Derivative Assets ($ in thousands) Description Gross amounts of Gross amounts Net amounts of Gross amounts not offset in the Net amount Financial Cash collateral Derivatives $ 449 $ — $ 449 $ — $ — $ 449 Total $ 449 $ — $ 449 $ — $ — $ 449 (1) Included in restricted cash on consolidated balance sheets. As of December 31, 2019 Offsetting of Financial Assets and Derivative Assets ($ in thousands) Description Gross amounts of Gross amounts Net amounts of Gross amounts not offset in the Net amount Financial Cash collateral Derivatives $ 693 $ — $ 693 $ — $ — $ 693 Total $ 693 $ — $ 693 $ — $ — $ 693 (1) Included in restricted cash on consolidated balance sheets. |
Schedule of offsetting of financial liabilities | As of September 30, 2020 Offsetting of Financial Liabilities and Derivative Liabilities ($ in thousands) Description Gross amounts of Gross amounts Net amounts of Gross amounts not offset in the Net amount Financial Cash collateral Repurchase agreements $ 1,176,966 $ — $ 1,176,966 $ 1,176,966 $ — $ — Total $ 1,176,966 $ — $ 1,176,966 $ 1,176,966 $ — $ — (1) Included in restricted cash on consolidated balance sheets. As of December 31, 2019 Offsetting of Financial Liabilities and Derivative Liabilities ($ in thousands) Description Gross amounts of Gross amounts Net amounts of Gross amounts not offset in the Net amount Financial Cash collateral Repurchase agreements $ 1,815,934 $ — $ 1,815,934 $ 1,815,934 $ — $ — Total $ 1,815,934 $ — $ 1,815,934 $ 1,815,934 $ — $ — (1) Included in restricted cash on consolidated balance sheets. |
CONSOLIDATED VARIABLE INTERES_2
CONSOLIDATED VARIABLE INTEREST ENTITIES (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Variable Interest Entities | The Company consolidates one collateralized loan obligation (“CLO”) VIE with the following balance sheet ($ in thousands): September 30, 2020 Notes 3 & 7 Restricted cash $ 8,649 Mortgage loan receivables held for investment, net, at amortized cost 434,519 Accrued interest receivable 1,620 Other assets 5,451 Total assets $ 450,239 Debt obligations, net $ 281,625 Accrued expenses 653 Total liabilities 282,278 Net equity in VIEs (eliminated in consolidation) 167,961 Total equity 167,961 Total liabilities and equity $ 450,239 |
EQUITY STRUCTURE AND ACCOUNTS (
EQUITY STRUCTURE AND ACCOUNTS (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
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, 2020 and 2019 ($ in thousands): Shares Amount(1) Authorizations remaining as of December 31, 2019 $ 41,132 Additional authorizations — Repurchases paid 334,251 (2,578) Repurchases unsettled — Authorizations remaining as of September 30, 2020 $ 38,554 (1) Amount excludes commissions paid associated with share repurchases. 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. |
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, 2020 and 2019: Declaration Date Dividend per Share February 27, 2020 $ 0.340 May 28, 2020 0.200 August 31, 2020 0.200 Total $ 0.740 February 27, 2019 $ 0.340 May 30, 2019 0.340 August 22, 2019 0.340 Total $ 1.020 |
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, 2020 and 2019 ($ in thousands): Accumulated Other Comprehensive Income (Loss) Accumulated Other Comprehensive Income (Loss) of Noncontrolling Interests Total Accumulated Other Comprehensive Income (Loss) December 31, 2019 $ 4,218 $ 477 $ 4,695 Other comprehensive income (loss) (27,935) (5,208) (33,143) Exchange of noncontrolling interest for common stock (6,953) 6,953 — Rebalancing of ownership percentage between Company and Operating Partnership 2,222 (2,222) — September 30, 2020 $ (28,448) $ — $ (28,448) 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 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
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, 2020 and 2019 consist of the following: Three Months Ended September 30, Nine Months Ended September 30, ($ in thousands except share amounts) 2020 2019 2020 2019 Basic Net income (loss) available for Class A common shareholders $ 17,188 $ 27,576 $ (2,729) $ 81,996 Diluted Net income (loss) available for Class A common shareholders $ 17,188 $ 27,576 $ (2,729) $ 81,996 Weighted average shares outstanding Basic 117,481,812 106,004,152 110,233,748 105,264,752 Diluted 118,791,927 106,603,713 110,233,748 106,232,581 |
Schedule of calculation of basic and diluted net income per share amounts | The calculation of basic and diluted net income (loss) per share amounts for the three and nine months ended September 30, 2020 and 2019 consist of the following: Three Months Ended September 30, Nine Months Ended September 30, (In thousands except share amounts) 2020 2019(1) 2020(1) 2019(1) Basic Net Income (Loss) Per Share of Class A Common Stock Numerator: Net income (loss) attributable to Class A common shareholders $ 17,188 $ 27,576 $ (2,729) $ 81,996 Denominator: Weighted average number of shares of Class A common stock outstanding 117,481,812 106,004,152 110,233,748 105,264,752 Basic net income (loss) per share of Class A common stock $ 0.15 $ 0.26 $ (0.02) $ 0.78 Diluted Net Income (Loss) Per Share of Class A Common Stock Numerator: Net income (loss) attributable to Class A common shareholders $ 17,188 $ 27,576 $ (2,729) $ 81,996 Add (deduct) - dilutive effect of: Amounts attributable to operating partnership’s share of Ladder Capital Corp net income (loss)(2) — — — — Additional corporate tax (expense) benefit(2) — — — — Diluted net income (loss) attributable to Class A common shareholders 17,188 27,576 (2,729) 81,996 Denominator: Basic weighted average number of shares of Class A common stock outstanding 117,481,812 106,004,152 110,233,748 105,264,752 Add - dilutive effect of: Shares issuable relating to converted Class B common shareholders(3) 1,217,761 — — — Incremental shares of unvested Class A restricted stock(3) 92,354 599,561 — 967,829 Incremental shares of unvested stock options — — — — Diluted weighted average number of shares of Class A common stock outstanding 118,791,927 106,603,713 110,233,748 106,232,581 Diluted net income (loss) per share of Class A common stock $ 0.14 $ 0.26 $ (0.02) $ 0.77 (1) For the nine months ended September 30, 2020 and the three and nine months ended and 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. (2) The Company is 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 for periods prior to September 30, 2020. There are no Class B common stock outstanding as of September 30, 2020. (3) The Company is using the treasury stock method. |
STOCK BASED AND OTHER COMPENS_2
STOCK BASED AND OTHER COMPENSATION PLANS (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
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 and in Note 14, Stock Based and Other Compensation Plans included within the Company’s Annual Report ($ in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Stock Based Compensation Expense $ 4,219 $ 3,575 $ 20,957 $ 18,336 Phantom Equity Investment Plan (94) 343 (1,671) 1,047 Stock Options Exercised — — 270 — Bonus Expense 517 6,533 487 21,035 Total $ 4,642 $ 10,451 $ 20,043 $ 40,418 |
Summary of the grants | A summary of the grants is presented below: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Number Weighted Number Weighted Number Weighted Number Weighted Grants - Class A Common Stock — $ — 24,125 $ 16.58 1,466,337 $ 18.72 1,569,694 $ 17.54 Grants - Class A Common Stock 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, 2020 and changes during 2020 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, 2019 1,436,683 994,208 Granted 1,466,337 — Exercised (83,845) Vested (1,221,279) Forfeited (24,266) — Expired — Nonvested/Outstanding at September 30, 2020 1,657,475 910,363 Exercisable at September 30, 2020 910,363 |
FAIR VALUE OF FINANCIAL INSTR_2
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
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, 2020 and December 31, 2019 are as follows ($ in thousands): September 30, 2020 Weighted Average Outstanding Amortized Cost Basis/Purchase Price Fair Value Fair Value Method Yield Remaining Assets: CMBS(1) $ 1,420,752 $ 1,420,537 $ 1,390,562 Internal model, third-party inputs 1.54 % 2.10 CMBS interest-only(1) 1,506,152 (2) 23,063 23,741 Internal model, third-party inputs 3.32 % 2.28 GNMA interest-only(3) 87,917 (2) 1,175 1,228 Internal model, third-party inputs 3.90 % 3.27 Agency securities(1) 595 603 619 Internal model, third-party inputs 1.66 % 1.40 GNMA permanent securities(1) 30,542 30,662 31,494 Internal model, third-party inputs 3.49 % 2.20 Provision for current expected credit reserves N/A (19) (19) (5) N/A N/A Mortgage loan receivables held for investment, net, at amortized cost: Mortgage loan receivables held for investment, net, at amortized cost 2,744,724 2,731,254 2,743,359 Discounted Cash Flow(4) 6.81 % 1.10 Provision for current expected credit reserves N/A (47,084) (47,084) (5) N/A N/A Mortgage loan receivables held for sale 30,513 30,553 32,016 Internal model, third-party inputs(6) 4.05 % 9.43 FHLB stock(7) 61,619 61,619 61,619 (7) 3.50 % N/A Nonhedge derivatives(1)(8) 66,800 N/A 449 Counterparty quotations N/A 0.25 Liabilities: Repurchase agreements - short-term 1,140,350 1,140,350 1,140,350 Discounted Cash Flow(9) 1.55 % 0.24 Repurchase agreements - long-term 36,616 36,616 36,616 Discounted Cash Flow(10) 0.64 % 1.23 Revolving credit facility 266,430 266,430 266,430 Discounted Cash Flow(9) 3.16 % 0.06 Mortgage loan financing 765,516 769,968 791,391 Discounted Cash Flow(10) 4.98 % 4.75 Secured financing facility 190,582 190,582 190,582 Discounted Cash Flow(9) 10.75 % 2.60 CLO debt 281,625 281,625 281,625 Discounted Cash Flow(9) 5.50 % 3.63 Borrowings from the FHLB 326,000 326,000 327,418 Discounted Cash Flow 1.33 % 2.68 Senior unsecured notes 1,716,994 1,702,939 1,031,999 Internal model, third-party inputs 4.96 % 3.94 (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 - short term borrowings under the secured financing facility and borrowings under the revolving credit facility is estimated to approximate carrying amount primarily due to the short interest rate reset risk (30 days) of the financings and the high credit quality of the assets collateralizing these positions. 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, mortgage loan financing, and CLO debt 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, 2019 Weighted Average Outstanding Amortized Fair Value Fair Value Method Yield Remaining Assets: CMBS(1) $ 1,640,597 $ 1,640,905 $ 1,644,322 Internal model, third-party inputs 3.08 % 2.41 CMBS interest-only(1) 1,559,160 (2) 28,553 29,146 Internal model, third-party inputs 3.04 % 2.53 GNMA interest-only(3) 109,783 (2) 1,982 1,851 Internal model, third-party inputs 4.59 % 2.77 Agency securities(1) 629 640 637 Internal model, third-party inputs 1.73 % 1.83 GNMA permanent securities(1) 31,461 31,681 32,369 Internal model, third-party inputs 3.17 % 1.93 Equity securities(3) N/A 12,848 12,980 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 3,277,596 3,257,036 3,273,219 Discounted Cash Flow(4) 6.94 % 1.43 Provision for loan losses N/A (20,500) (20,500) (5) N/A N/A Mortgage loan receivables held for sale 122,748 122,325 124,989 Internal model, third-party inputs(6) 4.20 % 9.99 FHLB stock(7) 61,619 61,619 61,619 (7) 4.75 % N/A Nonhedge derivatives(1)(8) 340,200 N/A 693 Counterparty quotations N/A 0.25 Liabilities: Repurchase agreements - short-term 1,781,253 1,781,253 1,781,253 Discounted Cash Flow(9) 2.50 % 0.19 Repurchase agreements - long-term 34,681 34,681 34,681 Discounted Cash Flow(10) 2.81 % 1.41 Mortgage loan financing 807,854 812,606 838,766 Discounted Cash Flow(10) 4.91 % 5.65 Borrowings from the FHLB 1,073,500 1,073,500 1,080,354 Discounted Cash Flow 2.33 % 2.08 Senior unsecured notes 1,166,201 1,157,833 1,208,860 Internal model, third-party inputs 5.39 % 3.28 Nonhedge derivatives(1)(8) 69,571 N/A — Counterparty quotations N/A 0.36 (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 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. |
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, 2020 and December 31, 2019 ($ in thousands): September 30, 2020 Financial Instruments Reported at Fair Value on Consolidated Statements of Financial Condition Outstanding Face Fair Value Level 1 Level 2 Level 3 Total Assets: CMBS(1) $ 1,409,202 $ — $ — $ 1,379,469 $ 1,379,469 CMBS interest-only(1) 1,495,559 (2) — — 23,035 23,035 GNMA interest-only(3) 87,917 (2) — — 1,228 1,228 Agency securities(1) 595 — — 619 619 GNMA permanent securities(1) 30,542 — — 31,494 31,494 Nonhedge derivatives(4) 66,800 — 449 — 449 $ — $ 449 $ 1,435,845 $ 1,436,294 Financial Instruments Not Reported at Fair Value on Consolidated Statements of Financial Condition Outstanding Face 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 $ 2,744,724 $ — $ — $ 2,743,359 $ 2,743,359 Provision for current expected credit losses N/A — — (47,084) (47,084) Mortgage loan receivable held for sale 30,513 — — 32,016 32,016 CMBS(5) 11,550 — — 11,093 11,093 CMBS interest-only(5) 10,593 (2) — — 706 706 Provision for current expected credit losses N/A (19) (19) FHLB stock 61,619 — — 61,619 61,619 $ — $ — $ 2,801,690 $ 2,801,690 Liabilities: Repurchase agreements - short-term 1,140,350 $ — $ — $ 1,140,350 $ 1,140,350 Repurchase agreements - long-term 36,616 — — 36,616 36,616 Revolving credit facility 266,430 — — 266,430 266,430 Mortgage loan financing 765,516 — — 791,391 791,391 Secured financing facility 190,582 — — 190,582 190,582 CLO debt 281,625 — — 281,625 281,625 Borrowings from the FHLB 326,000 — — 327,418 327,418 Senior unsecured notes 1,716,994 — — 1,031,999 1,031,999 $ — $ — $ 4,066,411 $ 4,066,411 (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, 2019 Financial Instruments Reported at Fair Value on Consolidated Statements of Financial Condition Outstanding Face Fair Value Level 1 Level 2 Level 3 Total Assets: CMBS(1) $ 1,628,476 $ — $ — $ 1,632,714 $ 1,632,714 CMBS interest-only(1) 1,548,061 (2) — — 28,342 28,342 GNMA interest-only(3) 109,783 (2) — — 1,851 1,851 Agency securities(1) 629 — — 637 637 GNMA permanent securities(1) 31,461 — — 32,369 32,369 Equity securities N/A 12,980 — — 12,980 Nonhedge derivatives(4) 340,200 — 693 — 693 $ 12,980 $ 693 $ 1,695,913 $ 1,709,586 Liabilities: Nonhedge derivatives(4) $ 69,571 $ — $ — $ — $ — Financial Instruments Not Reported at Fair Value on Consolidated Statements of Financial Condition Outstanding Face 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 $ 3,277,597 $ — $ — $ 3,273,219 $ 3,273,219 Provision for loan losses N/A — — (20,500) (20,500) Mortgage loan receivables held for sale 122,748 — — 124,989 124,989 CMBS(5) 12,121 — — 11,608 11,608 CMBS interest-only(5) 11,099 (2) — — 804 804 FHLB stock 61,619 — — 61,619 61,619 $ — $ — $ 3,451,739 $ 3,451,739 Liabilities: Repurchase agreements - short-term 1,781,253 $ — $ — $ 1,781,253 $ 1,781,253 Repurchase agreements - long-term 34,681 — — 34,681 34,681 Mortgage loan financing 807,854 — — 838,766 838,766 Borrowings from the FHLB 1,073,500 — — 1,080,354 1,080,354 Senior unsecured notes 1,166,201 — — 1,208,860 1,208,860 $ — $ — $ 4,943,914 $ 4,943,914 (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. |
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, 2020 and December 31, 2019 ($ in thousands): Nine Months Ended September 30, Level 3 2020 2019 Balance at January 1, $ 1,695,913 $ 1,385,957 Transfer from level 2 — — Purchases 438,707 1,193,671 Sales (551,676) (533,811) Paydowns/maturities (94,659) (178,402) Amortization of premium/discount (6,406) (9,333) Unrealized gain/(loss) (32,959) 16,813 Realized gain/(loss) on sale(1) (13,075) 10,639 Balance at September 30, $ 1,435,845 $ 1,885,534 (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, 2020 Financial Instrument Carrying Value Valuation Technique Unobservable Input Minimum Weighted Average Maximum CMBS(1) $ 1,379,469 Discounted cash flow Yield (4) 0.59 % 2.46 % 31.64 % Duration (years)(5) 0.00 2.56 6.05 CMBS interest-only(1) 23,035 (2) Discounted cash flow Yield (4) 0.87 % 2.57 % 9.94 % Duration (years)(5) 0.33 2.29 3.21 Prepayment speed (CPY)(5) 100.00 99.60 100.00 GNMA interest-only(3) 1,228 (2) Discounted cash flow Yield (4) — % 3.61 % 9.05 % Duration (years)(5) 0.45 2.51 6.37 Prepayment speed (CPJ)(5) 5.00 14.41 35.00 Agency securities(1) 619 Discounted cash flow Yield (4) 0.78 % 0.89 % 1.48 % Duration (years)(5) 0.00 1.87 2.24 GNMA permanent securities(1) 31,494 Discounted cash flow Yield (4) 2.47 % 3.56 % 6.39 % Duration (years)(5) 1.15 9.81 14.66 Total $ 1,435,845 (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, 2019 Financial Instrument Carrying Value Valuation Technique Unobservable Input Minimum Weighted Average Maximum CMBS(1) $ 1,632,714 Discounted cash flow Yield (3) — % 3.11 % 19.92 % Duration (years)(4) 0.00 1.63 6.87 CMBS interest-only(1) 28,342 (2) Discounted cash flow Yield (3) 1.57 % 3.93 % 7.62 % Duration (years)(4) 0.26 2.47 3.51 Prepayment speed (CPY)(4) 100.00 97.24 100.00 GNMA interest-only(3) 1,851 (2) Discounted cash flow Yield (4) (4.82) % 15.13 % 44.5 % Duration (years)(5) 0.85 2.90 13.69 Prepayment speed (CPJ)(5) 5.00 12.36 35.00 Agency securities(1) 637 Discounted cash flow Yield (4) — % 1.7 % 2.16 % Duration (years)(5) 0.00 2.30 2.92 GNMA permanent securities(1) 32,369 Discounted cash flow Yield (4) 56.56 % 166.79 % 410 % Duration (years)(5) 2.60 3.61 6.49 Total $ 1,695,913 (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. |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
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 Corporate/Other(2) Company Three months ended September 30, 2020 Interest income $ 48,349 $ 6,189 $ 1 $ 82 $ 54,621 Interest expense (16,319) (4,535) (10,221) (25,323) (56,398) Net interest income (expense) 32,030 1,654 (10,220) (25,241) (1,777) (Provision) benefit for loan losses 2,512 — — — 2,512 Net interest income (expense) after provision for loan losses 34,542 1,654 (10,220) (25,241) 735 Operating lease income — — 25,464 — 25,464 Sale of loans, net 1,127 — — — 1,127 Realized gain (loss) on securities — (303) — — (303) Unrealized gain (loss) on Agency interest-only securities — 9 — — 9 Realized gain on sale of real estate, net — — 21,588 — 21,588 Fee and other income 2,515 — — 536 3,051 Net result from derivative transactions 165 95 — — 260 Earnings (loss) from investment in unconsolidated joint ventures — — 447 — 447 Gain (loss) on extinguishment of debt — — — 1,167 1,167 Total other income (loss) 3,807 (199) 47,499 1,703 52,810 Salaries and employee benefits — — — (7,858) (7,858) Operating expenses(3) — — — (3,938) (3,938) Real estate operating expenses — — (8,060) — (8,060) Fee expense (2,465) (50) 39 — (2,476) Depreciation and amortization — — (9,792) (25) (9,817) Total costs and expenses (2,465) (50) (17,813) (11,821) (32,149) Income tax (expense) benefit — — — (14) (14) Segment profit (loss) $ 35,884 $ 1,405 $ 19,466 $ (35,373) $ 21,382 Total assets as of September 30, 2020 $ 2,714,723 $ 1,447,625 $ 1,039,738 $ 1,157,377 $ 6,359,463 Loans Securities Real Corporate/Other(2) Company 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) benefit 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(3) — — — (5,314) (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 December 31, 2019 $ 3,358,861 $ 1,721,305 $ 1,096,514 $ 492,472 $ 6,669,152 Loans Securities Real Corporate/Other(2) Company Nine months ended September 30, 2020 Interest income $ 160,896 $ 27,228 $ 11 $ 1,171 $ 189,306 Interest expense (32,921) (19,090) (30,213) (94,001) (176,225) Net interest income (expense) 127,975 8,138 (30,202) (92,830) 13,081 (Provision) benefit for loan losses (23,343) 3 — — (23,340) Net interest income (expense) after provision for loan losses 104,632 8,141 (30,202) (92,830) (10,259) Operating lease income — — 75,565 — 75,565 Sale of loans, net 1,387 — — — 1,387 Realized gain (loss) on securities — (12,089) — — (12,089) Unrealized gain (loss) on equity securities — (132) — — (132) Unrealized gain (loss) on Agency interest-only securities — 183 — — 183 Realized gain on sale of real estate, net — — 32,116 — 32,116 Fee and other income 6,368 403 25 1,279 8,075 Net result from derivative transactions (11,774) (4,214) — — (15,988) Earnings (loss) from investment in unconsolidated joint ventures — — 1,359 — 1,359 Gain (loss) on extinguishment of debt — — — 22,244 22,244 Total other income (loss) (4,019) (15,849) 109,065 23,523 112,720 Salaries and employee benefits — — — (31,880) (31,880) Operating expenses(3) — — — (15,957) (15,957) Real estate operating expenses — — (22,041) (22,041) Fee expense (5,129) (183) (580) — (5,892) Depreciation and amortization — — (29,568) (74) (29,642) Total costs and expenses (5,129) (183) (52,189) (47,911) (105,412) Income tax (expense) benefit — — — 5,078 5,078 Segment profit (loss) $ 95,484 $ (7,891) $ 26,674 $ (112,140) $ 2,127 Total assets as of September 30, 2020 $ 2,714,723 $ 1,447,625 $ 1,039,738 $ 1,157,377 $ 6,359,463 Loans Securities Real Corporate/Other(2) Company 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) benefit 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(3) — — — (16,727) (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 December 31, 2019 $ 3,358,861 $ 1,721,305 $ 1,096,514 $ 492,472 $ 6,669,152 (1) Includes the Company’s investment in unconsolidated joint ventures that held real estate of $49.2 million and $48.4 million as of September 30, 2020 and December 31, 2019, 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 $61.6 million as of September 30, 2020 and December 31, 2019, respectively, the Company’s deferred tax asset (liability) of $(8.7) million and $(2.1) million as of September 30, 2020 and December 31, 2019, respectively, and the Company’s senior unsecured notes of $1.7 billion and $1.2 billion as of September 30, 2020 and December 31, 2019, respectively. |
ORGANIZATION AND OPERATIONS (De
ORGANIZATION AND OPERATIONS (Details) | Sep. 30, 2020 |
LCFH | |
ORGANIZATION AND OPERATIONS | |
Ownership interest in LCFH | 100.00% |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Details) $ / shares in Units, $ in Thousands | Jan. 01, 2020USD ($)loans$ / shares | Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2020 | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($) | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||
Cash and cash equivalents | $ 875,839 | [1] | $ 83,097 | $ 875,839 | [1] | $ 83,097 | $ 58,171 | [1] | |||
Professional fees | 2,000 | 3,000 | $ 9,200 | 9,100 | |||||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201613Member | us-gaap:AccountingStandardsUpdate201613Member | |||||||||
General CECL Reserve | $ 11,600 | 47,084 | $ 47,084 | $ 20,500 | |||||||
Percentage of total loan portfolio | 0.36% | ||||||||||
Carrying value of held for investment loan portfolio | $ 3,200,000 | ||||||||||
Loans that previously had asset-specific reserves | loans | 3 | ||||||||||
Provision for current expected credit loss (implementation impact) | $ 5,800 | $ (2,018) | $ 0 | $ 15,620 | $ 600 | ||||||
Book value of common stock (in usd per share) | $ / shares | $ 0.05 | ||||||||||
COVID-19 Crisis | |||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||
Professional fees | $ 2,100 | ||||||||||
Severance costs | $ 200 | ||||||||||
Asset Specific Reserve, Company Loan | |||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||
General CECL Reserve | $ 14,700 | ||||||||||
Carrying value of financing receivable | $ 39,800 | ||||||||||
[1] | Includes amounts relating to consolidated variable interest entities. See Note 1 and Note 10. |
MORTGAGE LOAN RECEIVABLES - Sch
MORTGAGE LOAN RECEIVABLES - Schedule of Mortgage Loans (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2020 | Dec. 31, 2019 | Jan. 01, 2020 | Sep. 30, 2019 | Dec. 31, 2018 | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||
Outstanding Face Amount | $ 2,775,237 | $ 3,400,345 | |||
Allowance for credit losses | (47,084) | (20,500) | $ (11,600) | ||
Carrying Value | $ 2,714,723 | $ 3,358,861 | |||
Weighted average yield | 6.99% | 6.88% | |||
Remaining Maturity | 1 year 2 months 19 days | 1 year 9 months | |||
First mortgage loans | |||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||
Outstanding Face Amount | $ 2,622,120 | $ 3,147,275 | |||
Carrying Value gross, consumer and commercial real estate | $ 2,608,933 | $ 3,127,173 | |||
Weighted average yield | 6.59% | 6.77% | |||
Remaining Maturity | 1 year 10 days | 1 year 4 months 6 days | |||
Mezzanine loans | |||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||
Outstanding Face Amount | $ 122,604 | $ 130,322 | |||
Carrying Value gross, consumer and commercial real estate | $ 122,321 | $ 129,863 | |||
Weighted average yield | 10.90% | 10.97% | |||
Remaining Maturity | 2 years 7 months 24 days | 3 years 3 months 3 days | |||
Total 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 | $ 2,744,724 | $ 3,277,597 | |||
Carrying Value gross, consumer and commercial real estate | $ 2,731,254 | $ 3,257,036 | |||
Weighted average yield | 6.81% | 6.94% | |||
Remaining Maturity | 1 year 1 month 6 days | 1 year 5 months 4 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 | $ 2,744,724 | $ 3,277,597 | |||
Allowance for credit losses | (47,084) | (20,500) | $ (18,500) | $ (17,900) | |
Carrying Value | 2,684,170 | 3,236,536 | |||
Mortgage loan receivables held for sale, First Mortgage Loans | |||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||
Outstanding Face Amount | 30,513 | 122,748 | |||
Carrying Value | $ 30,553 | $ 122,325 | |||
Weighted average yield | 4.05% | 4.20% | |||
Remaining Maturity | 9 years 5 months 4 days | 9 years 11 months 26 days |
MORTGAGE LOAN RECEIVABLES - Add
MORTGAGE LOAN RECEIVABLES - Additional Information (Details) | Jan. 01, 2020USD ($)loans$ / shares | Oct. 17, 2018USD ($) | Mar. 31, 2018USD ($)loans | Sep. 30, 2020USD ($)loan | Jun. 30, 2020USD ($)loan | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($)loan | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($)loan | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($)loan | Dec. 31, 2018USD ($)security | Dec. 31, 2016USD ($)security | 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 | $ 400,000 | $ 400,000 | $ 400,000 | $ 400,000 | ||||||||||
General CECL Reserve | $ 11,600,000 | 47,084,000 | 20,500,000 | 47,084,000 | 20,500,000 | |||||||||
Percentage of total loan portfolio | 0.36% | |||||||||||||
Carrying value of held for investment loan portfolio | $ 3,200,000,000 | |||||||||||||
Loans that previously had asset-specific reserves | loans | 3 | |||||||||||||
Provision for current expected credit loss (implementation impact) | $ 5,800,000 | (2,018,000) | $ 0 | 15,620,000 | $ 600,000 | |||||||||
Book value of common stock (in usd per share) | $ / shares | $ 0.05 | |||||||||||||
Individually impaired loans | 76,280,000 | 76,280,000 | ||||||||||||
Loans nonaccrual status, amount | 201,517,000 | 86,025,000 | 201,517,000 | 86,025,000 | ||||||||||
Provision for/(release of) loan loss reserves | (2,512,000) | 0 | $ 23,340,000 | 600,000 | ||||||||||
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] | ||||||||||||||
Direct capitalization rate | 5.00% | 4.90% | ||||||||||||
Asset Specific Reserve, Company Loan | ||||||||||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||||||||||||
General CECL Reserve | $ 14,700,000 | |||||||||||||
Carrying value of financing receivable | 39,800,000 | |||||||||||||
Accounting Standards Update 2016-13 | ||||||||||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||||||||||||
General CECL Reserve | 47,600,000 | $ 47,600,000 | ||||||||||||
Carrying value of held for investment loan portfolio | $ 3,200,000,000 | |||||||||||||
Loans that previously had asset-specific reserves | loan | 4 | |||||||||||||
Additional CECL reserve recorded | (2,500,000) | $ 15,300,000 | ||||||||||||
Increase of reserve to provision expenses | (2,000,000) | 15,600,000 | ||||||||||||
Increase in reserve of unfunded commitments | (500,000) | (500,000) | ||||||||||||
Decrease of reserve on unfunded commitments | (300,000) | |||||||||||||
Accounting Standards Update 2016-13 | Asset Specific Reserve, Company Loan | ||||||||||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||||||||||||
General CECL Reserve | 20,700,000 | 20,700,000 | ||||||||||||
Asset specific provision | $ 7,500,000 | |||||||||||||
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 | $ 2,200,000,000 | $ 2,500,000,000 | $ 2,200,000,000 | $ 2,500,000,000 | ||||||||||
Loans receivable with variable rates of interest | 81.10% | 77.20% | 81.10% | 77.20% | ||||||||||
Loans receivable with variable rates of interest, subject to interest rate floors | 100.00% | 100.00% | 100.00% | 100.00% | ||||||||||
General CECL Reserve | $ 47,084,000 | $ 20,500,000 | $ 18,500,000 | $ 47,084,000 | $ 18,500,000 | $ 20,500,000 | $ 17,900,000 | |||||||
Provision for current expected credit loss (implementation impact) | 4,964,000 | |||||||||||||
Loans in default, carrying value | $ 45,000,000 | 61,500,000 | 61,500,000 | |||||||||||
Provision for/(release of) loan loss reserves | $ (2,000,000) | |||||||||||||
Total mortgage loan receivables held for investment, net, at amortized cost | Two Company Loans | ||||||||||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||||||||||||
Number or loans in default | 2 | 2 | 2 | 2 | ||||||||||
Loans in default, carrying value | $ 24,200,000 | $ 24,200,000 | $ 24,200,000 | $ 24,200,000 | $ 45,300,000 | $ 26,900,000 | ||||||||
Total mortgage loan receivables held for investment, net, at amortized cost | One Company Loan | ||||||||||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||||||||||||
Number or loans in default | 1 | 1 | 1 | 1 | 1 | 1 | 1 | |||||||
Loans in default, carrying value | $ 5,900,000 | $ 4,100,000 | ||||||||||||
Total mortgage loan receivables held for investment, net, at amortized cost | One Company Loan | 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 Company Loan | 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 | One Company Loan | 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 Company Loan | 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 | $ 400,000 | $ 400,000 | |||||||||||
Total mortgage loan receivables held for investment, net, at amortized cost | One Of Company Loan 1 | ||||||||||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||||||||||||
Number or loans in default | loan | 1 | |||||||||||||
Loans in default, carrying value | $ 39,500,000 | $ 39,500,000 | $ 39,500,000 | |||||||||||
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] | ||||||||||||||
Loans in default, carrying value | 45,300,000 | 61,500,000 | 45,300,000 | 61,500,000 | ||||||||||
Loan reserve amount | $ 2,700,000 | |||||||||||||
Asset specific provision | $ 500,000 | $ 10,000,000 | ||||||||||||
Terminal capitalization rate | 7.50% | |||||||||||||
Discount rate | 8.60% | |||||||||||||
Total mortgage loan receivables held for investment, net, at amortized cost | Asset Specific Reserve, Company Loan 1 | ||||||||||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||||||||||||
Loans in default, carrying value | 44,900,000 | $ 44,900,000 | ||||||||||||
Total mortgage loan receivables held for investment, net, at amortized cost | Two Of Company Loans 3 | ||||||||||||||
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 | ||||||||||||
Total mortgage loan receivables held for investment, net, at amortized cost | Two Of Company Loans 2 | ||||||||||||||
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 | 3,600,000 | $ 3,600,000 | ||||||||||||
Loans nonaccrual status, amount | 4,100,000 | 4,100,000 | ||||||||||||
Total mortgage loan receivables held for investment, net, at amortized cost | Asset Specific Reserve, Company Loan 3 | ||||||||||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||||||||||||
Loans in default, carrying value | 8,000,000 | 8,000,000 | ||||||||||||
Mortgage loan receivables held for sale | ||||||||||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||||||||||||
Loans receivable with fixed rates of interest | $ 30,500,000 | $ 122,700,000 | $ 30,500,000 | $ 122,700,000 | ||||||||||
Percentage of loans receivable with fixed rates of interest | 100.00% | 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 |
MORTGAGE LOAN RECEIVABLES - Act
MORTGAGE LOAN RECEIVABLES - Activity in Loan Portfolio (Details) - USD ($) $ in Thousands | Jan. 01, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 |
SEC Schedule, 12-29, Real Estate Companies, Investment in Movement in Mortgage Loans on Real Estate [Roll Forward] | ||||||
Allowance for loan losses, beginning balance | $ (20,500) | $ (20,500) | ||||
Purchases of mortgage loan receivables | $ 9,934 | |||||
Sale of loans, net | $ 1,127 | $ 11,247 | 1,387 | 38,589 | ||
Provision for current expected credit losses | 2,512 | 0 | (23,340) | (600) | ||
Provision expense for current expected credit loss | (5,800) | 2,018 | 0 | (15,620) | (600) | |
Asset-specific provision for loan loss reserve | (8,000) | |||||
Mortgage loans transferred but not considered sold, at amortized cost, outstanding face amount | $ 15,400 | |||||
Mortgage loans transferred but not considered sold, at amortized cost, book value | $ 15,500 | |||||
Mortgage loans transferred but not considered sold, at amortized cost, remaining maturity | 9 years 9 months 18 days | |||||
Total 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 | 3,257,036 | $ 3,318,390 | 3,257,036 | 3,318,390 | ||
Origination of mortgage loan receivables | 343,216 | 985,825 | ||||
Repayment of mortgage loan receivables | (675,281) | (1,105,506) | ||||
Proceeds from sales of mortgage loan receivables | (172,412) | |||||
Non-cash disposition of loans via foreclosure | (27,107) | (17,611) | ||||
Sale of loans, net | (6,665) | |||||
Transfer between held for investment and held for sale | 35,940 | |||||
Accretion/amortization of discount, premium and other fees | 12,467 | 14,405 | ||||
Mortgage loans receivable, ending balance | 2,731,254 | 3,231,443 | 2,731,254 | 3,231,443 | ||
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] | ||||||
Allowance for loan losses, beginning balance | (20,500) | (17,900) | (20,500) | (17,900) | ||
Provision for current expected credit losses | 2,000 | |||||
Provision expense for current expected credit loss | (4,964) | |||||
Provision expense for current expected credit loss, net (impact to earnings) | (15,620) | (600) | ||||
Mortgage loan receivables held for sale | ||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Movement in Mortgage Loans on Real Estate [Roll Forward] | ||||||
Mortgage loans receivable, beginning balance | $ 122,325 | $ 182,439 | 122,325 | 182,439 | ||
Origination of mortgage loan receivables | 212,845 | 554,115 | ||||
Repayment of mortgage loan receivables | (369) | (620) | ||||
Proceeds from sales of mortgage loan receivables | (312,300) | (558,799) | ||||
Sale of loans, net | 8,052 | 38,589 | ||||
Transfer between held for investment and held for sale | (51,444) | |||||
Mortgage loans receivable, ending balance | $ 30,553 | 174,214 | $ 30,553 | 174,214 | ||
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] | ||||||
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 |
MORTGAGE LOAN RECEIVABLES - Pro
MORTGAGE LOAN RECEIVABLES - Provision for Loan Losses (Details) $ in Thousands | Jan. 01, 2020USD ($) | Mar. 31, 2018USD ($)loans | Sep. 30, 2020USD ($)loan | Dec. 31, 2019USD ($)loan | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($)loan | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($)loan | Dec. 31, 2018USD ($)security | Dec. 31, 2016USD ($)security | Oct. 17, 2018USD ($) |
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||
Provision for loan losses at beginning of period | $ 20,500 | $ 49,102 | $ 18,500 | $ 18,500 | $ 20,500 | $ 17,900 | $ 17,900 | ||||
Provision for current expected credit loss (implementation impact) | $ 5,800 | (2,018) | 0 | 15,620 | 600 | ||||||
Provision for/(release of) loan loss reserves | (2,512) | 0 | 23,340 | 600 | |||||||
Additional asset-specific reserve | 0 | 0 | 8,000 | 0 | |||||||
Foreclosure of loans subject to asset-specific reserve | 0 | 0 | (2,000) | 0 | |||||||
Provision for loan losses at end of period | 47,084 | 20,500 | 18,500 | 47,084 | 18,500 | 20,500 | $ 17,900 | ||||
Principal balance of loans on non-accrual status | 201,517 | 86,025 | 201,517 | $ 86,025 | |||||||
Cumulative Effect, Period Of Adoption, Adjusted Balance | |||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||
Provision for current expected credit loss (implementation impact) | 0 | $ 0 | 4,964 | $ 0 | |||||||
Total mortgage loan receivables held for investment, net, at amortized cost | |||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||
Provision for current expected credit loss (implementation impact) | 4,964 | ||||||||||
Provision for/(release of) loan loss reserves | (2,000) | ||||||||||
Loans in default, carrying value | 61,500 | $ 61,500 | $ 45,000 | ||||||||
Total mortgage loan receivables held for investment, net, at amortized cost | Two Company Loans | |||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||
Number or loans in default | 2 | 2 | 2 | 2 | |||||||
Loans in default, carrying value | 24,200 | $ 24,200 | $ 24,200 | $ 24,200 | $ 45,300 | $ 26,900 | |||||
Total mortgage loan receivables held for investment, net, at amortized cost | Two Of Company Loans 1 | |||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||
Number or loans in default | loan | 2 | ||||||||||
Loans in default, carrying value | $ 27,800 | $ 27,800 | |||||||||
Total mortgage loan receivables held for investment, net, at amortized cost | One Company Loan | |||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||
Number or loans in default | 1 | 1 | 1 | 1 | 1 | 1 | 1 | ||||
Loans in default, carrying value | $ 5,900 | $ 4,100 | |||||||||
Total mortgage loan receivables held for investment, net, at amortized cost | One Company Loan | Series B | |||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||
Loans in default, carrying value | $ 400 | $ 400 | $ 10,000 | ||||||||
Total mortgage loan receivables held for investment, net, at amortized cost | Asset Specific Reserve, Company Loan | |||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||
Loans in default, carrying value | $ 45,300 | $ 61,500 | $ 45,300 | $ 61,500 |
MORTGAGE LOAN RECEIVABLES - Ind
MORTGAGE LOAN RECEIVABLES - Individually Impaired Loans (Details) $ in Thousands | Mar. 31, 2018USD ($)loans | Sep. 30, 2020USD ($)loan | Dec. 31, 2019USD ($)loan | Sep. 30, 2020USD ($)loan | Dec. 31, 2019USD ($)loan | Dec. 31, 2018USD ($)security | Dec. 31, 2016USD ($)security | Oct. 17, 2018USD ($) |
Financing Receivable, Credit Quality Indicator [Line Items] | ||||||||
Subtotal loans, 2020 | $ 279,548 | $ 279,548 | ||||||
Subtotal loans, 2019 | 1,147,534 | 1,147,534 | ||||||
Subtotal loans, 2018 | 719,206 | 719,206 | ||||||
Subtotal loans, 2017 | 256,892 | 256,892 | ||||||
Subtotal loans, 2016 and Earlier | 251,794 | 251,794 | ||||||
Subtotal loans | 2,654,974 | 2,654,974 | ||||||
Individually impaired loans, 2020 | 0 | 0 | ||||||
Individually impaired loans, 2019 | 0 | 0 | ||||||
Individually impaired loans, 2018 | 4,143 | 4,143 | ||||||
Individually impaired loans, 2017 | 0 | 0 | ||||||
Individually impaired loans, 2016 and Earlier | 72,137 | 72,137 | ||||||
Individually impaired loans | 76,280 | 76,280 | ||||||
Total loans, 2020 | 279,548 | 279,548 | ||||||
Total loans, 2019 | 1,147,534 | 1,147,534 | ||||||
Total loans, 2018 | 723,349 | 723,349 | ||||||
Total loans, 2017 | 256,892 | 256,892 | ||||||
Total loans, 2016 and Earlier | 323,931 | 323,931 | ||||||
Total loans | 2,731,254 | 2,731,254 | ||||||
Total mortgage loan receivables held for investment, net, at amortized cost | ||||||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||||||
Loans in default, carrying value | $ 61,500 | $ 61,500 | $ 45,000 | |||||
One Company Loan | Total mortgage loan receivables held for investment, net, at amortized cost | ||||||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||||||
Number or loans in default | 1 | 1 | 1 | 1 | 1 | 1 | 1 | |
Loans in default, carrying value | $ 5,900 | $ 4,100 | ||||||
Two Company Loans | Total mortgage loan receivables held for investment, net, at amortized cost | ||||||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||||||
Number or loans in default | 2 | 2 | 2 | 2 | ||||
Loans in default, carrying value | $ 24,200 | $ 24,200 | $ 24,200 | $ 24,200 | $ 45,300 | $ 26,900 | ||
Northeast | ||||||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||||||
Total loans | 779,956 | 779,956 | ||||||
Southwest | ||||||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||||||
Total loans | 575,969 | 575,969 | ||||||
South | ||||||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||||||
Total loans | 485,643 | 485,643 | ||||||
Midwest | ||||||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||||||
Total loans | 469,497 | 469,497 | ||||||
West | ||||||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||||||
Total loans | 343,909 | 343,909 | ||||||
Multifamily | ||||||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||||||
2020 | 65,380 | 65,380 | ||||||
2019 | 299,648 | 299,648 | ||||||
2018 | 66,006 | 66,006 | ||||||
2017 | 24,562 | 24,562 | ||||||
2016 and Earlier | 0 | 0 | ||||||
Total loans | 455,596 | 455,596 | ||||||
Office | ||||||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||||||
2020 | 0 | 0 | ||||||
2019 | 67,317 | 67,317 | ||||||
2018 | 137,530 | 137,530 | ||||||
2017 | 67,378 | 67,378 | ||||||
2016 and Earlier | 123,639 | 123,639 | ||||||
Total loans | 395,864 | 395,864 | ||||||
Hospitality | ||||||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||||||
2020 | 52,971 | 52,971 | ||||||
2019 | 203,285 | 203,285 | ||||||
2018 | 389,172 | 389,172 | ||||||
2017 | 150,585 | 150,585 | ||||||
2016 and Earlier | 51,935 | 51,935 | ||||||
Total loans | 847,948 | 847,948 | ||||||
Mixed Use | ||||||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||||||
2020 | 52,572 | 52,572 | ||||||
2019 | 101,571 | 101,571 | ||||||
2018 | 0 | 0 | ||||||
2017 | 14,367 | 14,367 | ||||||
2016 and Earlier | 0 | 0 | ||||||
Total loans | 168,510 | 168,510 | ||||||
Retail | ||||||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||||||
2020 | 0 | 0 | ||||||
2019 | 134,826 | 134,826 | ||||||
2018 | 19,786 | 19,786 | ||||||
2017 | 0 | 0 | ||||||
2016 and Earlier | 65,784 | 65,784 | ||||||
Total loans | 220,396 | 220,396 | ||||||
Other | ||||||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||||||
2020 | 52,030 | 52,030 | ||||||
2019 | 131,087 | 131,087 | ||||||
2018 | 79,813 | 79,813 | ||||||
2017 | 0 | 0 | ||||||
2016 and Earlier | 0 | 0 | ||||||
Total loans | 262,930 | 262,930 | ||||||
Industrial | ||||||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||||||
2020 | 52,046 | 52,046 | ||||||
2019 | 116,579 | 116,579 | ||||||
2018 | 0 | 0 | ||||||
2017 | 0 | 0 | ||||||
2016 and Earlier | 6,470 | 6,470 | ||||||
Total loans | 175,095 | 175,095 | ||||||
Manufactured Housing | ||||||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||||||
2020 | 4,549 | 4,549 | ||||||
2019 | 57,261 | 57,261 | ||||||
2018 | 11,710 | 11,710 | ||||||
2017 | 0 | 0 | ||||||
2016 and Earlier | 3,966 | 3,966 | ||||||
Total loans | 77,486 | 77,486 | ||||||
Self-Storage | ||||||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||||||
2020 | 0 | 0 | ||||||
2019 | 35,960 | 35,960 | ||||||
2018 | 15,189 | 15,189 | ||||||
2017 | 0 | 0 | ||||||
2016 and Earlier | 0 | 0 | ||||||
Total loans | $ 51,149 | $ 51,149 |
REAL ESTATE SECURITIES - Additi
REAL ESTATE SECURITIES - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Unrealized mark-to-market gain | $ 18,400,000 | |||
Realized gain (loss) on equity securities | $ 0 | (45,200,000) | $ 100,000 | |
Realized gain (loss) on sale of equity securities | $ 0 | 1,100,000 | ||
Other than temporary impairment losses included in consolidated statements of income | $ 0 | $ (100,000) | $ (300,000) | $ (100,000) |
REAL ESTATE SECURITIES - Summar
REAL ESTATE SECURITIES - Summary of Securities (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2020USD ($)security | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($)security | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($)security | ||
Debt Securities, Available-for-sale [Line Items] | ||||||
Outstanding Face Amount | $ 3,045,958 | $ 3,045,958 | $ 3,341,630 | |||
Amortized Cost Basis/Purchase Price | 1,476,040 | 1,476,040 | 1,703,761 | |||
Gross Unrealized Gains | 2,805 | 2,805 | 5,779 | |||
Gross Unrealized Losses | (31,201) | (31,201) | (1,215) | |||
Carrying Value | $ 1,447,644 | $ 1,447,644 | $ 1,708,325 | |||
Number of Securities | security | 134 | 134 | 159 | |||
Weighted Average Coupon | 0.96% | 0.96% | 1.84% | |||
Weighted Average Yield | 1.62% | 1.62% | 3.06% | |||
Remaining Duration | 2 years 1 month 9 days | 2 years 4 months 20 days | ||||
Provision for/(release of) loan loss reserves | $ (2,512) | $ 0 | $ 23,340 | $ 600 | ||
Number of equity securities | security | 2 | |||||
Amortized Cost Basis/Purchase Price | 1,476,040 | 1,476,040 | $ 1,716,609 | |||
Gross Unrealized Gains | 2,805 | 2,805 | 6,071 | |||
Total real estate securities, Gross Unrealized Losses | (31,220) | (31,220) | (1,375) | |||
Carrying Value | [1] | $ 1,447,625 | $ 1,447,625 | $ 1,721,305 | ||
Total number of Securities | security | 134 | 134 | 161 | |||
CMBS | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Outstanding Face Amount | $ 1,420,752 | $ 1,420,752 | $ 1,640,597 | |||
Amortized Cost Basis/Purchase Price | 1,420,537 | 1,420,537 | 1,640,905 | |||
Gross Unrealized Gains | 1,018 | 1,018 | 4,337 | |||
Gross Unrealized Losses | (30,993) | (30,993) | (920) | |||
Carrying Value | $ 1,390,562 | $ 1,390,562 | $ 1,644,322 | |||
Number of Securities | security | 102 | 102 | 125 | |||
Weighted Average Coupon | 1.49% | 1.49% | 3.06% | |||
Weighted Average Yield | 1.54% | 1.54% | 3.08% | |||
Remaining Duration | 2 years 1 month 6 days | 2 years 4 months 28 days | ||||
Risk retention requirement, amount | $ 11,100 | $ 11,100 | $ 11,600 | |||
CMBS interest-only | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Outstanding Face Amount | 1,506,152 | 1,506,152 | 1,559,160 | |||
Amortized Cost Basis/Purchase Price | 23,063 | 23,063 | 28,553 | |||
Gross Unrealized Gains | 723 | 723 | 630 | |||
Gross Unrealized Losses | (45) | (45) | (37) | |||
Carrying Value | $ 23,741 | $ 23,741 | $ 29,146 | |||
Number of Securities | security | 13 | 13 | 15 | |||
Weighted Average Coupon | 0.44% | 0.44% | 0.60% | |||
Weighted Average Yield | 3.32% | 3.32% | 3.04% | |||
Remaining Duration | 2 years 3 months 10 days | 2 years 6 months 10 days | ||||
Risk retention requirement, amount | $ 700 | $ 700 | $ 800 | |||
GNMA interest-only | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Outstanding Face Amount | 87,917 | 87,917 | 109,783 | |||
Amortized Cost Basis/Purchase Price | 1,175 | 1,175 | 1,982 | |||
Gross Unrealized Gains | 216 | 216 | 123 | |||
Gross Unrealized Losses | (163) | (163) | (254) | |||
Carrying Value | $ 1,228 | $ 1,228 | $ 1,851 | |||
Number of Securities | security | 11 | 11 | 11 | |||
Weighted Average Coupon | 0.44% | 0.44% | 0.49% | |||
Weighted Average Yield | 3.90% | 3.90% | 4.59% | |||
Remaining Duration | 3 years 3 months 7 days | 2 years 9 months 7 days | ||||
Agency securities | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Outstanding Face Amount | $ 595 | $ 595 | $ 629 | |||
Amortized Cost Basis/Purchase Price | 603 | 603 | 640 | |||
Gross Unrealized Gains | 16 | 16 | 1 | |||
Gross Unrealized Losses | 0 | 0 | (4) | |||
Carrying Value | $ 619 | $ 619 | $ 637 | |||
Number of Securities | security | 2 | 2 | 2 | |||
Weighted Average Coupon | 2.57% | 2.57% | 2.65% | |||
Weighted Average Yield | 1.66% | 1.66% | 1.73% | |||
Remaining Duration | 1 year 4 months 24 days | 1 year 9 months 29 days | ||||
GNMA permanent securities | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Outstanding Face Amount | $ 30,542 | $ 30,542 | $ 31,461 | |||
Amortized Cost Basis/Purchase Price | 30,662 | 30,662 | 31,681 | |||
Gross Unrealized Gains | 832 | 832 | 688 | |||
Gross Unrealized Losses | 0 | 0 | 0 | |||
Carrying Value | $ 31,494 | $ 31,494 | $ 32,369 | |||
Number of Securities | security | 6 | 6 | 6 | |||
Weighted Average Coupon | 3.88% | 3.88% | 3.91% | |||
Weighted Average Yield | 3.49% | 3.49% | 3.17% | |||
Remaining Duration | 2 years 2 months 12 days | 1 year 11 months 4 days | ||||
Equity securities | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Provision for current expected credit losses | $ (19) | |||||
Provision for/(release of) loan loss reserves | $ (19) | |||||
Amortized Cost Basis/Purchase Price | $ 12,848 | |||||
Gross Unrealized Gains | 292 | |||||
Total debt securities, Gross Unrealized Losses | (160) | |||||
Carrying Value | $ 12,980 | |||||
[1] | Includes amounts relating to consolidated variable interest entities. See Note 1 and Note 10. |
REAL ESTATE SECURITIES - Securi
REAL ESTATE SECURITIES - Securities by Remaining Maturity (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Debt Securities, Available-for-sale [Line Items] | ||
Within 1 year | $ 291,979 | $ 179,139 |
1-5Â years | 1,107,546 | 1,451,193 |
5-10Â years | 48,119 | 77,993 |
After 10 years | 0 | 0 |
Total | 1,447,644 | 1,708,325 |
CMBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Within 1 year | 289,889 | 177,193 |
1-5Â years | 1,052,832 | 1,389,392 |
5-10Â years | 47,841 | 77,737 |
After 10 years | 0 | 0 |
Total | 1,390,562 | 1,644,322 |
CMBS interest-only | ||
Debt Securities, Available-for-sale [Line Items] | ||
Within 1 year | 1,889 | 1,439 |
1-5Â years | 21,852 | 27,707 |
5-10Â years | 0 | 0 |
After 10 years | 0 | 0 |
Total | 23,741 | 29,146 |
GNMA interest-only | ||
Debt Securities, Available-for-sale [Line Items] | ||
Within 1 year | 64 | 91 |
1-5Â years | 886 | 1,504 |
5-10Â years | 278 | 256 |
After 10 years | 0 | 0 |
Total | 1,228 | 1,851 |
Agency securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Within 1 year | 0 | 0 |
1-5Â years | 619 | 637 |
5-10Â years | 0 | 0 |
After 10 years | 0 | 0 |
Total | 619 | 637 |
GNMA permanent securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Within 1 year | 137 | 416 |
1-5Â years | 31,357 | 31,953 |
5-10Â years | 0 | 0 |
After 10 years | 0 | 0 |
Total | $ 31,494 | $ 32,369 |
REAL ESTATE AND RELATED LEASE_3
REAL ESTATE AND RELATED LEASE INTANGIBLES, NET - Schedule of Real Estate Portfolio (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 | |
Real estate and related lease intangibles, net | |||
Less: Accumulated depreciation and amortization | $ (221,523) | $ (206,082) | |
Real estate and related lease intangibles, net | [1] | 990,583 | 1,048,081 |
Below market lease intangibles, net (other liabilities) | (37,500) | (39,067) | |
In-place leases and other intangibles | |||
Real estate and related lease intangibles, net | |||
Real estate | 157,011 | 161,203 | |
Land | |||
Real estate and related lease intangibles, net | |||
Real estate | 220,465 | 209,955 | |
Building | |||
Real estate and related lease intangibles, net | |||
Real estate | $ 834,630 | $ 883,005 | |
[1] | Includes amounts relating to consolidated variable interest entities. See Note 1 and Note 10. |
REAL ESTATE AND RELATED LEASE_4
REAL ESTATE AND RELATED LEASE INTANGIBLES, NET - Additional Information (Details) - USD ($) | May 01, 2019 | Feb. 06, 2019 | Jan. 10, 2019 | Jun. 30, 2020 | Feb. 28, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 |
Business Acquisition [Line Items] | |||||||||||
Foreclosed properties held in real estate | $ 107,700,000 | $ 107,700,000 | $ 89,500,000 | ||||||||
Proceeds from lease prepayments | $ 10,000,000 | ||||||||||
Mortgage loan and financing related to property sales | $ 6,600,000 | ||||||||||
Gain (loss) on extinguishment/defeasance of debt | $ (1,100,000) | 1,167,000 | $ 0 | 22,244,000 | $ (1,070,000) | ||||||
Impairment of real estate | 0 | 0 | $ 1,400,000 | 0 | 1,350,000 | ||||||
Operating lease income | $ 3,900,000 | 25,464,000 | 24,405,000 | 75,565,000 | 81,106,000 | ||||||
Loss on sale of real estate | 3,500,000 | ||||||||||
Depreciation and amortization | 400,000 | 9,817,000 | 9,030,000 | 29,642,000 | 29,192,000 | ||||||
Loss on sale of real estate | $ 20,000 | ||||||||||
Unbilled rent receivables | 400,000 | 400,000 | 900,000 | ||||||||
Unencumbered real estates | 71,300,000 | 71,300,000 | $ 59,200,000 | ||||||||
Real estate operating income | 2,000,000 | 1,100,000 | $ 4,500,000 | $ 2,100,000 | |||||||
Weighted average amortization period for intangible assets acquired | 39 years 9 months 18 days | 38 years 3 months 18 days | |||||||||
Revenues from acquisitions | 100,000 | 167,400 | $ 300,000 | $ 246,300 | |||||||
Net earnings (loss) | (500,000) | (1,000,000) | (400,000) | (2,500,000) | |||||||
Provision for/(release of) loan loss reserves | (2,512,000) | 0 | 23,340,000 | 600,000 | |||||||
Real estate acquired through foreclosure, fair value | 25,435,000 | 18,200,000 | 25,435,000 | 18,200,000 | |||||||
Gain resulting from foreclosure of loan | (51,000) | 0 | |||||||||
Realized loss on sale of real estate, net | $ 0 | 21,588,000 | $ 2,082,000 | 32,116,000 | $ 963,000 | ||||||
2020 Disposal Properties | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Realized loss on sale of real estate, net | 94,230,000 | ||||||||||
Los Angeles, California | Real Estate Acquired in Satisfaction of Debt | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Gain resulting from foreclosure of loan | (100,000) | ||||||||||
Omaha, NE | Real Estate Acquired in Satisfaction of Debt | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Gain resulting from foreclosure of loan | $ 0 | ||||||||||
Diversified | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Real estate acquired through foreclosure, net basis | 3,800,000 | ||||||||||
Diversified | Los Angeles, California | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Real estate acquired through foreclosure, net basis | 21,600,000 | 21,600,000 | |||||||||
Provision for/(release of) loan loss reserves | 2,000,000 | ||||||||||
Real estate acquired through foreclosure, fair value | 21,535,000 | 21,535,000 | |||||||||
Diversified | Omaha, NE | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Real estate acquired through foreclosure, net basis | 17,900,000 | ||||||||||
Real estate acquired through foreclosure, fair value | $ 18,200,000 | ||||||||||
Terminal capitalization rate | 8.75% | ||||||||||
Discount rate | 10.25% | ||||||||||
Diversified | Winston Salem, North Carolina | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Real estate acquired through foreclosure, fair value | $ 3,900,000 | $ 3,900,000 | $ 3,900,000 | ||||||||
Terminal capitalization rate | 9.50% | ||||||||||
Discount rate | 13.50% | ||||||||||
Assets Leased to Others | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Property book value | 5,600,000 | ||||||||||
Accumulated depreciation and amortization | $ 2,700,000 |
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, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Real Estate [Abstract] | ||||
Depreciation expense | $ 8,138 | $ 7,394 | $ 24,571 | $ 22,776 |
Amortization expense | 1,679 | 1,612 | 5,071 | 6,342 |
Total real estate depreciation and amortization expense | 9,817 | 9,006 | 29,642 | 29,118 |
Depreciation on corporate fixed assets | $ 25 | $ 24 | $ 74 | $ 74 |
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, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Business Acquisition [Line Items] | |||||
Gross intangible assets | $ 157,010 | $ 157,010 | $ 161,203 | ||
Accumulated amortization | 64,260 | 64,260 | 62,773 | ||
Net intangible assets | 92,750 | 92,750 | 98,430 | ||
Unamortized favorable lease intangibles | 4,300 | 4,300 | $ 4,500 | ||
Increase in operating lease income for amortization of below market lease intangibles acquired | 624 | $ 564 | 1,995 | $ 1,594 | |
Above Market Leases | |||||
Business Acquisition [Line Items] | |||||
Reduction in operating lease income for amortization of above market lease intangibles acquired | $ (92) | $ (94) | $ (275) | $ (727) |
REAL ESTATE AND RELATED LEASE_7
REAL ESTATE AND RELATED LEASE INTANGIBLES, NET - Expected Future Amortization Expense (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Finite-Lived Intangible Assets [Line Items] | ||
Net intangible assets | $ 92,750 | $ 98,430 |
Adjustment to Operating Lease Income | ||
Finite-Lived Intangible Assets [Line Items] | ||
2020 (last 3 months) | 268 | |
2021 | 1,070 | |
2022 | 1,070 | |
2023 | 1,070 | |
2024 | 1,070 | |
Thereafter | 28,692 | |
Net intangible assets | 33,240 | |
Amortization Expense | ||
Finite-Lived Intangible Assets [Line Items] | ||
2020 (last 3 months) | 1,491 | |
2021 | 5,504 | |
2022 | 5,504 | |
2023 | 5,504 | |
2024 | 5,504 | |
Thereafter | 64,932 | |
Net intangible assets | $ 88,439 |
REAL ESTATE AND RELATED LEASE_8
REAL ESTATE AND RELATED LEASE INTANGIBLES, NET - Future Minimum Rental Payments Receivable (Details) $ in Thousands | Sep. 30, 2020USD ($) |
Real Estate [Abstract] | |
2020 (last 3 months) | $ 31,209 |
2021 | 72,872 |
2022 | 64,975 |
2023 | 64,206 |
2024 | 63,220 |
Thereafter | 495,607 |
Total | $ 792,089 |
REAL ESTATE AND RELATED LEASE_9
REAL ESTATE AND RELATED LEASE INTANGIBLES, NET - Schedule of Real Estate Properties Acquired (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Jun. 30, 2020 | Feb. 28, 2019 | |
Business Acquisition [Line Items] | ||||
Purchase Price | $ 31,674 | $ 32,104 | ||
Real estate acquired through foreclosure | 25,435 | 18,200 | ||
Lease Real Estate | ||||
Business Acquisition [Line Items] | ||||
Purchase Price | $ 6,239 | $ 13,904 | ||
Ownership Interest | 100.00% | 100.00% | ||
Los Angeles, California | Diversified | ||||
Business Acquisition [Line Items] | ||||
Real estate acquired through foreclosure | $ 21,535 | |||
Ownership Interest | 100.00% | |||
Winston Salem, North Carolina | Diversified | ||||
Business Acquisition [Line Items] | ||||
Real estate acquired through foreclosure | $ 3,900 | $ 3,900 | ||
Ownership Interest | 100.00% | |||
Omaha, NE | Diversified | ||||
Business Acquisition [Line Items] | ||||
Real estate acquired through foreclosure | $ 18,200 | |||
Ownership Interest | 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 | 3 Months Ended | 9 Months Ended |
Sep. 30, 2020 | Sep. 30, 2019 | |
Real Estate [Abstract] | ||
Land | $ 23,524 | $ 4,969 |
Building | 7,244 | 25,571 |
Intangibles | 1,201 | 2,309 |
Below Market Lease Intangibles | (295) | (745) |
Purchase Price | $ 31,674 | $ 32,104 |
REAL ESTATE AND RELATED LEAS_11
REAL ESTATE AND RELATED LEASE INTANGIBLES, NET - Real Estate Properties Sold (Details) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||
Jun. 30, 2020USD ($) | Sep. 30, 2020USD ($)property | Sep. 30, 2019USD ($)property | Sep. 30, 2020USD ($)property | Sep. 30, 2019USD ($)property | Dec. 31, 2019USD ($) | ||
Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Net Sales Proceeds | $ 62,596,000 | $ 10,794,000 | |||||
Net Book Value | [1] | $ 990,583,000 | 990,583,000 | $ 1,048,081,000 | |||
Realized gain (loss) on sale of real estate, net | $ 0 | 21,588,000 | $ 2,082,000 | 32,116,000 | 963,000 | ||
2020 Disposal Properties | |||||||
Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Net Sales Proceeds | 94,230,000 | ||||||
Net Book Value | 94,230,000 | 94,230,000 | |||||
Realized gain (loss) on sale of real estate, net | 94,230,000 | ||||||
2020 Disposal Properties | Condominium | Miami, FL | |||||||
Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Net Sales Proceeds | 1,199,000 | ||||||
Net Book Value | $ 1,174,000 | 1,174,000 | |||||
Realized gain (loss) on sale of real estate, net | $ 25,000 | ||||||
Properties | property | 0 | 0 | |||||
Units Sold | property | 4 | ||||||
Units Remaining | property | 2 | ||||||
2020 Disposal Properties | Diversified | Richmond, VA | |||||||
Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Net Sales Proceeds | $ 22,527,000 | ||||||
Net Book Value | $ 14,829,000 | 14,829,000 | |||||
Realized gain (loss) on sale of real estate, net | $ 7,698,000 | ||||||
Properties | property | 7 | 7 | |||||
Units Sold | property | 0 | ||||||
Units Remaining | property | 0 | ||||||
2020 Disposal Properties | Diversified | Richmond, VA | |||||||
Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Net Sales Proceeds | $ 6,932,000 | ||||||
Net Book Value | $ 4,109,000 | 4,109,000 | |||||
Realized gain (loss) on sale of real estate, net | $ 2,823,000 | ||||||
Properties | property | 1 | 1 | |||||
Units Sold | property | 0 | ||||||
Units Remaining | property | 0 | ||||||
2019 Disposal Properties | |||||||
Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Net Sales Proceeds | 22,913,000 | ||||||
Net Book Value | 21,769,000 | 21,769,000 | |||||
Realized gain (loss) on sale of real estate, net | 1,144,000 | ||||||
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) on sale of real estate, net | $ 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 | $ 4,195,000 | ||||||
Net Book Value | $ 3,796,000 | 3,796,000 | |||||
Realized gain (loss) on sale of real estate, net | $ 399,000 | ||||||
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 | $ 1,729,000 | ||||||
Net Book Value | $ 4,799,000 | 4,799,000 | |||||
Realized gain (loss) on sale of real estate, net | $ (3,070,000) | ||||||
Properties | property | 1 | 1 | |||||
Units Sold | property | 0 | ||||||
Units Remaining | property | 0 | ||||||
2019 Disposal Properties | Diversified | Grand Rapids, Michigan | |||||||
Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Net Sales Proceeds | $ 10,019,000 | ||||||
Net Book Value | $ 8,254,000 | 8,254,000 | |||||
Realized gain (loss) on sale of real estate, net | $ 1,765,000 | ||||||
Properties | property | 1 | 1 | |||||
Units Sold | property | 0 | ||||||
Units Remaining | property | 0 | ||||||
[1] | Includes amounts relating to consolidated variable interest entities. See Note 1 and Note 10. |
INVESTMENT IN AND ADVANCES TO_3
INVESTMENT IN AND ADVANCES TO UNCONSOLIDATED JOINT VENTURES - Investments in Unconsolidated Joint Ventures (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 | |
Schedule of Equity Method Investments [Line Items] | |||
Investment in unconsolidated joint ventures | [1] | $ 49,155 | $ 48,433 |
Grace Lake JV, LLC | |||
Schedule of Equity Method Investments [Line Items] | |||
Investment in unconsolidated joint ventures | 3,732 | 3,047 | |
24 Second Avenue Holdings LLC | |||
Schedule of Equity Method Investments [Line Items] | |||
Investment in unconsolidated joint ventures | $ 45,423 | $ 45,386 | |
[1] | Includes amounts relating to consolidated variable interest entities. See Note 1 and Note 10. |
INVESTMENT IN AND ADVANCES TO_4
INVESTMENT IN AND ADVANCES TO UNCONSOLIDATED JOINT VENTURES - Summary of Allocated Earnings (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Schedule of Equity Method Investments [Line Items] | ||||
Earnings (loss) from investment in unconsolidated joint ventures | $ 447 | $ 1,094 | $ 1,359 | $ 3,617 |
Grace Lake JV, LLC | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Earnings (loss) from investment in unconsolidated joint ventures | 236 | 517 | 685 | 1,549 |
24 Second Avenue Holdings LLC | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Earnings (loss) from investment in unconsolidated joint ventures | $ 211 | $ 577 | $ 674 | $ 2,068 |
INVESTMENT IN AND ADVANCES TO_5
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, 2020USD ($)property | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($)property | Sep. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Mar. 22, 2013 | |
Schedule of Equity Method Investments [Line Items] | |||||||
Distributions from operations of investment in unconsolidated joint ventures | $ 0 | $ 3,067,000 | |||||
Grace Lake JV, LLC | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
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% | ||||||
Distributions from operations of investment in unconsolidated joint ventures | $ 0 | 3,100,000 | |||||
Grace Lake JV, LLC | Ladder Capital Financial Corporation | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Percentage of investment of operating partner | 81.00% | ||||||
Grace Lake JV, LLC | LPÂ 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] | |||||||
Income (expenses) from investment | $ 200,000 | $ 600,000 | $ 700,000 | 2,100,000 | |||
Interest costs capitalized | $ 100,000 | ||||||
24 Second Avenue Holdings LLC | Apartment Building | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Number of real estate properties | property | 30 | 30 | |||||
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 | 19 | 19 | |||||
Real estate properties, under contract | $ 49,600,000 | $ 49,600,000 | |||||
Real estate properties, under contract, deposit held | $ 0.15 | $ 0.15 | |||||
24 Second Avenue Holdings LLC | Apartment Building | Real Estate Property Sold 1 | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Number of real estate properties, under contract | property | 1 | 1 | |||||
Real estate properties, under contract | $ 3,800,000 | $ 3,800,000 | |||||
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 | $ 11,300,000 | $ 11,300,000 | |||||
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 |
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, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Jun. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | |||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Total assets | [1] | $ 6,359,463 | $ 6,359,463 | $ 6,669,152 | ||||||||
Total liabilities | [1] | 4,837,669 | 4,837,669 | 5,030,175 | ||||||||
Partners’/members’ capital | 1,521,794 | [1] | $ 1,639,250 | 1,521,794 | [1] | $ 1,639,250 | $ 1,508,380 | 1,638,977 | [1] | $ 1,648,074 | $ 1,643,635 | |
Total expenses | 32,149 | 36,989 | 105,412 | 121,446 | ||||||||
Net income (loss) | 21,382 | 30,948 | 2,127 | 91,552 | ||||||||
Equity Method Investment, Nonconsolidated Investee or Group of Investees | 24 Second Avenue Holdings LLC | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Total assets | 114,110 | 114,110 | 118,727 | |||||||||
Total liabilities | 76,477 | 76,477 | 78,762 | |||||||||
Partners’/members’ capital | 37,633 | 37,633 | $ 39,965 | |||||||||
Total revenues | 4,339 | 3,915 | 13,109 | 14,945 | ||||||||
Total expenses | 3,458 | 4,595 | 10,882 | 12,029 | ||||||||
Net income (loss) | $ 881 | $ (680) | $ 2,227 | $ 2,916 | ||||||||
[1] | Includes amounts relating to consolidated variable interest entities. See Note 1 and Note 10. |
DEBT OBLIGATIONS, NET - Schedul
DEBT OBLIGATIONS, NET - Schedule of Company's Debt Obligations (Details) | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2020USD ($)Extension | Dec. 31, 2019USD ($)Extension | Feb. 26, 2020USD ($)Extension | Feb. 14, 2020USD ($) | |
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Debt Obligations Outstanding | $ 1,176,966,000 | $ 1,815,934,000 | ||
Debt obligations | 4,714,510,000 | |||
Carrying Amount of Collateral | 0 | 0 | ||
Committed Loan Repurchase Facility | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Committed Financing | 1,550,000,000 | 1,750,000,000 | ||
Debt Obligations Outstanding | 353,780,000 | 702,264,000 | ||
Committed but Unfunded | 1,196,220,000 | 1,047,736,000 | ||
Carrying Amount of Collateral | 534,878,000 | 1,149,281,000 | ||
Fair Value of Collateral | 534,919,000 | 1,152,250,000 | ||
Committed Loan Repurchase Facility | Maturing on 19 December 2022 | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Committed Financing | 500,000,000 | 600,000,000 | $ 500,000,000 | |
Debt Obligations Outstanding | 114,679,000 | 183,828,000 | ||
Committed but Unfunded | 385,321,000 | 416,172,000 | ||
Carrying Amount of Collateral | 179,523,000 | 287,974,000 | ||
Fair Value of Collateral | $ 179,523,000 | $ 288,210,000 | ||
Number of extension maturity periods | Extension | 2 | 2 | ||
Length of extension options | 12 months | 12 months | ||
Committed Loan Repurchase Facility | Maturing On February 26 2021 | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Committed Financing | $ 250,000,000 | |||
Debt Obligations Outstanding | 0 | |||
Committed but Unfunded | 250,000,000 | |||
Carrying Amount of Collateral | 0 | |||
Fair Value of Collateral | $ 0 | |||
Number of extension maturity periods | Extension | 3 | |||
Length of extension options | 12 months | |||
Committed Loan Repurchase Facility | Maturing on 19 December 2020 | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Committed Financing | $ 300,000,000 | $ 300,000,000 | ||
Debt Obligations Outstanding | 141,750,000 | 248,182,000 | ||
Committed but Unfunded | 158,250,000 | 51,818,000 | ||
Carrying Amount of Collateral | 183,851,000 | 382,778,000 | ||
Fair Value of Collateral | $ 183,851,000 | $ 382,778,000 | ||
Number of extension maturity periods | Extension | 3 | 3 | ||
Length of extension options | 364 days | 364 days | ||
Committed Loan Repurchase Facility | Maturing on 6 November 2022 | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Committed Financing | $ 300,000,000 | $ 300,000,000 | ||
Debt Obligations Outstanding | 41,292,000 | 98,678,000 | ||
Committed but Unfunded | 258,708,000 | 201,322,000 | ||
Carrying Amount of Collateral | 76,193,000 | 175,000,000 | ||
Fair Value of Collateral | $ 76,193,000 | $ 175,270,000 | ||
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 | Maturing On 31 December 2022 | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Committed Financing | $ 100,000,000 | |||
Debt Obligations Outstanding | 38,158,000 | |||
Committed but Unfunded | 61,842,000 | |||
Carrying Amount of Collateral | 64,711,000 | |||
Fair Value of Collateral | $ 64,752,000 | |||
Number of extension maturity periods | Extension | 2 | |||
Length of extension options | 12 months | |||
Committed Loan Repurchase Facility | Maturing On 24 March 2021 | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Committed Financing | $ 100,000,000 | |||
Debt Obligations Outstanding | 17,901,000 | |||
Committed but Unfunded | 82,099,000 | |||
Carrying Amount of Collateral | 30,600,000 | |||
Fair Value of Collateral | $ 30,600,000 | |||
Length of extension options | 364 days | |||
Committed Loan Repurchase Facility | Maturing on 23 December 2021 | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Committed Financing | $ 500,000,000 | |||
Committed Loan Repurchase Facility | Maturing On 24 May 2020 | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Committed Financing | 350,000,000 | |||
Debt Obligations Outstanding | 70,697,000 | |||
Committed but Unfunded | 279,303,000 | |||
Carrying Amount of Collateral | 101,590,000 | |||
Fair Value of Collateral | $ 103,868,000 | |||
Number of extension maturity periods | Extension | 1 | |||
Length of extension options | 12 months | |||
Committed Loan Repurchase Facility | Maturing on 3 January 2023 | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Committed Financing | $ 100,000,000 | |||
Debt Obligations Outstanding | 9,952,000 | |||
Committed but Unfunded | 90,048,000 | |||
Carrying Amount of Collateral | 75,628,000 | |||
Fair Value of Collateral | $ 75,813,000 | |||
Number of extension maturity periods | Extension | 2 | |||
Length of extension options | 12 months | |||
Committed Loan Repurchase Facility | Maturing on 24 December 2020 | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Committed Financing | $ 100,000,000 | |||
Debt Obligations Outstanding | 90,927,000 | |||
Committed but Unfunded | 9,073,000 | |||
Carrying Amount of Collateral | 126,311,000 | |||
Fair Value of Collateral | $ 126,311,000 | |||
Length of extension options | 364 days | |||
Committed Securities Repurchase Facility | Maturing on 23 December 2021 | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Committed Financing | $ 785,321,000 | $ 400,000,000 | ||
Debt Obligations Outstanding | 352,197,000 | 42,751,000 | ||
Committed but Unfunded | 433,124,000 | 357,249,000 | ||
Carrying Amount of Collateral | 418,604,000 | 52,691,000 | ||
Fair Value of Collateral | 418,604,000 | 52,691,000 | ||
Uncommitted Securities Repurchase Facility | Various Date | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Debt Obligations Outstanding | 470,989,000 | 1,070,919,000 | ||
Carrying Amount of Collateral | 583,353,000 | 1,188,440,000 | ||
Fair Value of Collateral | 583,353,000 | 1,188,440,000 | ||
Restricted securities held-to-maturity | 2,200,000 | 2,200,000 | ||
Total Repurchase Facilities | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Committed Financing | 1,950,000,000 | 2,150,000,000 | ||
Debt Obligations Outstanding | 1,176,966,000 | 1,815,934,000 | ||
Committed but Unfunded | 1,244,023,000 | 1,404,985,000 | ||
Carrying Amount of Collateral | 1,536,835,000 | 2,390,412,000 | ||
Fair Value of Collateral | 1,536,876,000 | 2,393,381,000 | ||
Revolving Credit Facility | Maturing February 11 2021 | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Committed Financing | 266,430,000 | |||
Debt Obligations Outstanding | 266,430,000 | |||
Committed but Unfunded | $ 0 | |||
Number of extension maturity periods | Extension | 4 | |||
Length of extension options | 12 months | |||
Revolving Credit Facility | Maturing 11 February 2020 | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Committed Financing | 266,430,000 | |||
Debt Obligations Outstanding | 0 | |||
Committed but Unfunded | $ 266,430,000 | |||
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 | $ 769,968,000 | $ 812,606,000 | ||
Debt Obligations Outstanding | 769,968,000 | 812,606,000 | ||
Committed but Unfunded | 0 | 0 | ||
Carrying Amount of Collateral | 919,286,000 | 988,857,000 | ||
Fair Value of Collateral | 1,136,208,000 | 1,192,106,000 | ||
Secured Financing Facility | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Unamortized debt issuance costs | (8,514,000) | |||
Secured Financing Facility | Maturing On 6 May 2023 | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Committed Financing | 206,350,000 | |||
Debt Obligations Outstanding | 190,582,000 | |||
Committed but Unfunded | 0 | |||
Carrying Amount of Collateral | 335,674,000 | |||
Fair Value of Collateral | 336,055,000 | |||
Unamortized debt issuance costs | (8,500,000) | |||
Unamortized debt discount | 7,300,000 | |||
CLO Debt | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Unamortized debt issuance costs | (3,416,000) | |||
CLO Debt | Various Date | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Unamortized debt issuance costs | (3,400,000) | |||
CLO Debt | Maturing On 16 May 2024 | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Committed Financing | 285,040,000 | |||
Debt Obligations Outstanding | 281,625,000 | |||
Carrying Amount of Collateral | 434,519,000 | |||
Fair Value of Collateral | 434,519,000 | |||
Unamortized debt issuance costs | (3,400,000) | |||
Borrowings from the FHLB | Various Date | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Committed Financing | 1,500,000,000 | 1,945,795,000 | ||
Debt Obligations Outstanding | 326,000,000 | 1,073,500,000 | ||
Committed but Unfunded | 1,174,000,000 | 872,295,000 | ||
Carrying Amount of Collateral | 473,556,000 | 1,107,188,000 | ||
Fair Value of Collateral | 477,407,000 | 1,113,811,000 | ||
Restricted securities held-to-maturity | 9,400,000 | |||
Senior Unsecured Notes | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Unamortized debt issuance costs | (14,055,000) | |||
Senior Unsecured Notes | Various Date | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Debt issued | 1,716,994,000 | 1,166,201,000 | ||
Senior Unsecured Notes | 1,702,939,000 | 1,157,833,000 | ||
Committed but Unfunded | 0 | 0 | ||
Restricted securities held-to-maturity | 9,900,000 | |||
Unamortized debt issuance costs | (14,100,000) | (8,400,000) | ||
Total Debt Obligations | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Debt issued | 6,694,782,000 | 6,341,032,000 | ||
Debt obligations | 4,714,510,000 | 4,859,873,000 | ||
Committed but Unfunded | 2,418,023,000 | 2,543,710,000 | ||
Carrying Amount of Collateral | 3,699,870,000 | 4,486,457,000 | ||
Fair Value of Collateral | 3,921,065,000 | $ 4,699,298,000 | ||
Purchase Right | Maturing On 6 May 2023 | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Unamortized debt issuance costs | $ (7,254,000) | |||
Minimum | Committed Loan Repurchase Facility | Maturing on 19 December 2022 | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Interest rate | 1.90% | 3.24% | ||
Minimum | Committed Loan Repurchase Facility | Maturing On February 26 2021 | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Committed Financing | $ 250,000,000 | |||
Interest rate | 0.00% | |||
Number of extension maturity periods | Extension | 3 | |||
Minimum | Committed Loan Repurchase Facility | Maturing on 19 December 2020 | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Interest rate | 1.90% | 3.49% | ||
Minimum | Committed Loan Repurchase Facility | Maturing on 6 November 2022 | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Interest rate | 1.94% | 3.50% | ||
Minimum | Committed Loan Repurchase Facility | Maturing On 31 December 2022 | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Interest rate | 2.19% | |||
Minimum | Committed Loan Repurchase Facility | Maturing On 24 March 2021 | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Interest rate | 3.50% | |||
Minimum | Committed Loan Repurchase Facility | Maturing On 24 May 2020 | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Interest rate | 3.71% | |||
Minimum | Committed Loan Repurchase Facility | Maturing on 3 January 2023 | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Interest rate | 3.96% | |||
Minimum | Committed Loan Repurchase Facility | Maturing on 24 December 2020 | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Interest rate | 3.74% | |||
Minimum | Committed Securities Repurchase Facility | Maturing on 23 December 2021 | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Interest rate | 0.86% | 2.50% | ||
Minimum | Uncommitted Securities Repurchase Facility | Various Date | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Interest rate | 0.91% | 2.17% | ||
Minimum | Revolving Credit Facility | Maturing February 11 2021 | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Interest rate | 3.15% | |||
Minimum | Mortgage Loan Financing | Various Date | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Interest rate | 3.75% | 3.75% | ||
Minimum | Secured Financing Facility | Maturing On 6 May 2023 | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Interest rate | 10.75% | |||
Minimum | CLO Debt | Maturing On 16 May 2024 | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Interest rate | 5.50% | |||
Minimum | Borrowings from the FHLB | Various Date | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Interest rate | 41.00% | 1.47% | ||
Minimum | Senior Unsecured Notes | Various Date | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Interest rate | 4.25% | 5.25% | ||
Maximum | Committed Loan Repurchase Facility | Maturing on 19 December 2022 | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Interest rate | 2.15% | 3.74% | ||
Maximum | Committed Loan Repurchase Facility | Maturing On February 26 2021 | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Committed Financing | $ 350,000,000 | |||
Interest rate | 0.00% | |||
Maximum | Committed Loan Repurchase Facility | Maturing on 19 December 2020 | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Interest rate | 2.90% | 3.74% | ||
Maximum | Committed Loan Repurchase Facility | Maturing on 6 November 2022 | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Interest rate | 2.40% | 3.99% | ||
Maximum | Committed Loan Repurchase Facility | Maturing On 31 December 2022 | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Interest rate | 2.28% | |||
Maximum | Committed Loan Repurchase Facility | Maturing On 24 March 2021 | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Interest rate | 3.50% | |||
Maximum | Committed Loan Repurchase Facility | Maturing on 23 December 2021 | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Committed Financing | $ 500,000,000 | |||
Maximum | Committed Loan Repurchase Facility | Maturing On 24 May 2020 | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Interest rate | 3.81% | |||
Maximum | Committed Loan Repurchase Facility | Maturing on 3 January 2023 | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Interest rate | 3.75% | |||
Maximum | Committed Loan Repurchase Facility | Maturing on 24 December 2020 | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Interest rate | 3.80% | |||
Maximum | Committed Securities Repurchase Facility | Maturing on 23 December 2021 | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Interest rate | 2.41% | 2.56% | ||
Maximum | Uncommitted Securities Repurchase Facility | Various Date | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Interest rate | 3.50% | 3.54% | ||
Maximum | Revolving Credit Facility | Maturing February 11 2021 | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Interest rate | 3.16% | |||
Maximum | Mortgage Loan Financing | Various Date | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Interest rate | 6.75% | 6.75% | ||
Maximum | Secured Financing Facility | Maturing On 6 May 2023 | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Interest rate | 10.75% | |||
Maximum | CLO Debt | Maturing On 16 May 2024 | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Interest rate | 5.50% | |||
Maximum | Borrowings from the FHLB | Various Date | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Interest rate | 3.00% | 2.95% | ||
Maximum | Senior Unsecured Notes | Various Date | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Interest rate | 5.88% | 5.88% |
DEBT OBLIGATIONS, NET - Sched_2
DEBT OBLIGATIONS, NET - Schedule of Maturities (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2019 | |
Long-term Debt, Fiscal Year Maturity [Abstract] | ||
2020 (last 3 months) | $ 919,876 | |
2021 | 914,964 | |
2022 | 622,297 | |
2023 | 351,620 | |
2024 | 580,986 | |
Thereafter | 1,353,554 | |
Subtotal | 4,743,297 | |
Premiums included in mortgage loan financing | 4,845 | |
Debt obligations | 4,714,510 | |
Senior Unsecured Notes | ||
Long-term Debt, Fiscal Year Maturity [Abstract] | ||
Unamortized debt issuance costs | (14,055) | |
Secured Financing Facility | ||
Long-term Debt, Fiscal Year Maturity [Abstract] | ||
Unamortized debt issuance costs | (8,514) | |
CLO Debt | ||
Long-term Debt, Fiscal Year Maturity [Abstract] | ||
Unamortized debt issuance costs | (3,416) | |
Mortgage Loan Financing | ||
Long-term Debt, Fiscal Year Maturity [Abstract] | ||
Unamortized debt issuance costs | $ (393) | |
Length of extension options | 1 year |
DEBT OBLIGATIONS, NET - Committ
DEBT OBLIGATIONS, NET - Committed Loan and Securities Repurchase Facilities (Details) | Sep. 30, 2020USD ($)Extension | Mar. 23, 2020USD ($) | Feb. 26, 2020USD ($)Extension | Feb. 14, 2020USD ($) | Dec. 31, 2019USD ($)Extension |
Debt Instrument [Line Items] | |||||
Equity restricted as payment as a dividend | $ 849,000,000 | ||||
Committed Loan Repurchase Facility | |||||
Debt Instrument [Line Items] | |||||
Committed Financing | 1,550,000,000 | $ 1,750,000,000 | |||
Maturing on 19 December 2022 | Committed Loan Repurchase Facility | |||||
Debt Instrument [Line Items] | |||||
Committed Financing | $ 500,000,000 | $ 500,000,000 | $ 600,000,000 | ||
Number of extension maturity periods | Extension | 2 | 2 | |||
Maturing On February 26 2021 | Committed Loan Repurchase Facility | |||||
Debt Instrument [Line Items] | |||||
Committed Financing | $ 250,000,000 | ||||
Number of extension maturity periods | Extension | 3 | ||||
Maturing On February 26 2021 | Committed Loan Repurchase Facility | Minimum | |||||
Debt Instrument [Line Items] | |||||
Committed Financing | $ 250,000,000 | ||||
Number of extension maturity periods | Extension | 3 | ||||
Maturing On February 26 2021 | Committed Loan Repurchase Facility | Maximum | |||||
Debt Instrument [Line Items] | |||||
Committed Financing | $ 350,000,000 | ||||
Maturing on 23 December 2021 | Committed Loan Repurchase Facility | |||||
Debt Instrument [Line Items] | |||||
Committed Financing | $ 500,000,000 | ||||
Committed amount on credit agreement | $ 900,000,000 | ||||
Maturing on 23 December 2021 | Committed Loan Repurchase Facility | Maximum | |||||
Debt Instrument [Line Items] | |||||
Committed Financing | $ 500,000,000 | ||||
Maturing on 23 December 2021 | Committed Securities Repurchase Facility | |||||
Debt Instrument [Line Items] | |||||
Committed Financing | $ 785,321,000 | $ 400,000,000 | |||
Committed amount on credit agreement | $ 900,000,000 |
DEBT OBLIGATIONS, NET - Secured
DEBT OBLIGATIONS, NET - Secured Financing Facility (Details) - USD ($) | Apr. 30, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | |||||
Issuance of purchase right | $ 8,425,000 | $ 0 | |||
Debt obligations, net | [1] | 4,714,510,000 | $ 4,859,873,000 | ||
Purchase Right | Maturing On 6 May 2023 | |||||
Debt Instrument [Line Items] | |||||
Unamortized debt issuance costs | 7,254,000 | ||||
Secured Financing Facility | |||||
Debt Instrument [Line Items] | |||||
Debt obligations, net | 190,600,000 | ||||
Unamortized debt issuance costs | $ 8,514,000 | ||||
Secured Financing Facility | Maturing On 6 May 2023 | |||||
Debt Instrument [Line Items] | |||||
Issuance of purchase rights | (7,300,000) | ||||
Unamortized debt issuance costs | $ 8,500,000 | ||||
Common Class A | |||||
Debt Instrument [Line Items] | |||||
Common stock, authorized (in shares) | 600,000,000 | 600,000,000 | |||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | |||
Non-Recourse Notes | Koch Real Estate Investments, LLC | Minimum | London Interbank Offered Rate (LIBOR) | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate on debt instrument | 0.75% | ||||
Non-Recourse Notes | Koch Real Estate Investments, LLC | Maximum | London Interbank Offered Rate (LIBOR) | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate on debt instrument | 10.00% | ||||
Non-Recourse Notes | Secured Debt | Koch Real Estate Investments, LLC | |||||
Debt Instrument [Line Items] | |||||
Committed amount on credit agreement | $ 206,400,000 | ||||
Minimum interest premium | 39,200,000 | ||||
Non-Recourse Notes | Secured Debt | Koch Real Estate Investments, LLC | Purchase Right | |||||
Debt Instrument [Line Items] | |||||
Issuance of purchase right | 200,900,000 | ||||
Debt proceeds allocated to the originally issued debt obligation | 192,500,000 | ||||
Issuance of purchase rights | $ 8,400,000 | ||||
Non-Recourse Notes | Secured Debt | Koch Real Estate Investments, LLC | Common Class A | |||||
Debt Instrument [Line Items] | |||||
Common stock, authorized (in shares) | 4,000,000 | ||||
Common stock, par value (in dollars per share) | $ 8 | ||||
[1] | Includes amounts relating to consolidated variable interest entities. See Note 1 and Note 10. |
DEBT OBLIGATIONS, NET - Collate
DEBT OBLIGATIONS, NET - Collateralized Loan Obligation Debt (Details) - USD ($) $ in Thousands | Apr. 27, 2020 | Sep. 30, 2020 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | ||||
Debt obligations, net | [1] | $ 4,714,510 | $ 4,859,873 | |
Loans financed | $ 481,300 | |||
Advance rate | 64.50% | |||
Subordinate and controlling interest | 35.50% | |||
CLO Debt | ||||
Debt Instrument [Line Items] | ||||
Unamortized debt issuance costs | $ 3,416 | |||
Various Date | CLO Debt | ||||
Debt Instrument [Line Items] | ||||
Debt obligations, net | 281,600 | |||
Unamortized debt issuance costs | $ 3,400 | |||
Non-Recourse Notes | CLO Debt | ||||
Debt Instrument [Line Items] | ||||
Debt obligations, net | $ 310,200 | |||
[1] | Includes amounts relating to consolidated variable interest entities. See Note 1 and Note 10. |
DEBT OBLIGATIONS, NET - Senior
DEBT OBLIGATIONS, NET - Senior Unsecured Notes (Details) - USD ($) | Jan. 30, 2020 | Feb. 06, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 25, 2017 | Mar. 16, 2017 | Aug. 01, 2014 |
Debt Instrument [Line Items] | |||||||||
Gain (loss) on extinguishment/defeasance of debt | $ (1,100,000) | $ 1,167,000 | $ 0 | $ 22,244,000 | $ (1,070,000) | ||||
Amortization expense | (1,679,000) | $ (1,612,000) | (5,071,000) | $ (6,342,000) | |||||
Senior Unsecured Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt retired | 139,100,000 | 139,100,000 | |||||||
Gain (loss) on extinguishment/defeasance of debt | 19,000,000 | ||||||||
Amortization expense | (1,500,000) | ||||||||
Senior Notes Due 2027 | Senior Unsecured Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Loan refinance | $ 750,000,000 | 651,800,000 | 651,800,000 | ||||||
Stated interest rate on debt instrument | 4.25% | ||||||||
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 | ||||||||
Debt retired | 98,200,000 | 98,200,000 | |||||||
Repurchase price | 83,900,000 | 83,900,000 | |||||||
Gain (loss) on extinguishment/defeasance of debt | 12,900,000 | ||||||||
Unamortized debt issuance costs | (1,300,000) | ||||||||
Senior Notes Due 2025 | Senior Unsecured Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Loan refinance | 348,000,000 | 348,000,000 | $ 400,000,000 | ||||||
Stated interest rate on debt instrument | 5.25% | ||||||||
Debt retired | 52,000,000 | 52,000,000 | |||||||
Repurchase price | 45,100,000 | 45,100,000 | |||||||
Gain (loss) on extinguishment/defeasance of debt | 6,400,000 | ||||||||
Unamortized debt issuance costs | (500,000) | ||||||||
Senior Notes Due 2022 | Senior Unsecured Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Loan refinance | 465,900,000 | 465,900,000 | $ 500,000,000 | ||||||
Stated interest rate on debt instrument | 5.25% | ||||||||
Debt retired | 34,200,000 | 34,200,000 | |||||||
Repurchase price | 33,200,000 | 33,200,000 | |||||||
Gain (loss) on extinguishment/defeasance of debt | 700,000 | ||||||||
Unamortized debt issuance costs | (200,000) | ||||||||
Senior Notes Due 2021 | Senior Unsecured Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Senior Unsecured Notes | 1,700,000,000 | 1,700,000,000 | |||||||
Loan refinance | 251,400,000 | 251,400,000 | $ 300,000,000 | ||||||
Stated interest rate on debt instrument | 5.875% | ||||||||
Debt retired | 14,900,000 | 14,900,000 | |||||||
Repurchase price | $ 14,600,000 | 14,600,000 | |||||||
Gain (loss) on extinguishment/defeasance of debt | 200,000 | ||||||||
Unamortized debt issuance costs | $ (34,000) |
DEBT OBLIGATIONS, NET - Financi
DEBT OBLIGATIONS, NET - Financing Strategy in Current Market Conditions (Details) - USD ($) | Apr. 27, 2020 | Sep. 30, 2020 | Apr. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | |||||||
Amount paid down, FHLB Borrowings | $ 34,800,000 | ||||||
Debt obligations, net | [1] | 4,714,510,000 | $ 4,859,873,000 | ||||
Loans financed | $ 481,300,000 | ||||||
Advance rate | 64.50% | ||||||
Cash, cash equivalents and restricted cash | 917,736,000 | $ 355,746,000 | $ 121,753,000 | $ 98,450,000 | |||
Senior Unsecured Notes | |||||||
Debt Instrument [Line Items] | |||||||
Amount paid down | 27,300,000 | ||||||
Senior Notes Due 2027 | Senior Unsecured Notes | |||||||
Debt Instrument [Line Items] | |||||||
Amount paid down | 90,800,000 | ||||||
Non-Recourse Notes | CLO Debt | |||||||
Debt Instrument [Line Items] | |||||||
Debt obligations, net | $ 310,200,000 | ||||||
Non-Recourse Notes | Secured Debt | Koch Real Estate Investments, LLC | |||||||
Debt Instrument [Line Items] | |||||||
Non-mark to market financing facility | $ 206,400,000 | ||||||
Maturing February 11 2021 | Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Committed financing | $ 266,430,000 | ||||||
[1] | Includes amounts relating to consolidated variable interest entities. See Note 1 and Note 10. |
DERIVATIVE INSTRUMENTS - Schedu
DERIVATIVE INSTRUMENTS - Schedule of Derivatives Outstanding (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2019 | ||
Derivative [Line Items] | |||
Notional | $ 136,371 | $ 409,771 | |
Fair value, asset | [1] | 449 | 693 |
Fair value, liability | 0 | 0 | |
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 | 4 months 9 days | |
5-year Swap | |||
Derivative [Line Items] | |||
Notional | $ 24,400 | $ 46,000 | |
Fair value, asset | 164 | 158 | |
Fair value, liability | $ 0 | $ 0 | |
Remaining maturity | 3 months | 3 months | |
10-year Swap | |||
Derivative [Line Items] | |||
Notional | $ 42,400 | $ 149,800 | |
Fair value, asset | 285 | 516 | |
Fair value, liability | $ 0 | $ 0 | |
Remaining maturity | 3 months | 3 months | |
5-year U.S. Treasury Note | |||
Derivative [Line Items] | |||
Notional | $ 1,100 | ||
Fair value, asset | 4 | ||
Fair value, liability | $ 0 | ||
Remaining maturity | 3 months | ||
Futures | |||
Derivative [Line Items] | |||
Notional | $ 66,800 | $ 196,900 | |
Fair value, asset | 449 | 678 | |
Fair value, liability | $ 0 | 0 | |
S&P 500 Put Options | |||
Derivative [Line Items] | |||
Notional | 143,300 | ||
Fair value, asset | 15 | ||
Fair value, liability | $ 0 | ||
Remaining maturity | 18 days | ||
Credit Derivatives | |||
Derivative [Line Items] | |||
Notional | $ 143,300 | ||
Fair value, asset | 15 | ||
Fair value, liability | $ 0 | ||
[1] | Includes amounts relating to consolidated variable interest entities. See Note 1 and 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, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Derivative [Line Items] | ||||
Unrealized Gain/(Loss) | $ 69 | $ (621) | $ (118) | $ 889 |
Realized Gain/(Loss) | 191 | (8,844) | (15,870) | (36,845) |
Net Result from Derivative Transactions | 260 | (9,465) | (15,988) | (35,956) |
Futures | ||||
Derivative [Line Items] | ||||
Unrealized Gain/(Loss) | 69 | (618) | (229) | 892 |
Realized Gain/(Loss) | 191 | (8,868) | (16,081) | (36,761) |
Net Result from Derivative Transactions | 260 | (9,486) | (16,310) | (35,869) |
Credit Derivatives | ||||
Derivative [Line Items] | ||||
Unrealized Gain/(Loss) | 0 | (3) | 111 | (3) |
Realized Gain/(Loss) | 0 | 24 | 211 | (84) |
Net Result from Derivative Transactions | $ 0 | $ 21 | $ 322 | $ (87) |
DERIVATIVE INSTRUMENTS - Additi
DERIVATIVE INSTRUMENTS - Additional Information (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Cash margins held as collateral for derivatives by counterparties | $ 0.9 | $ 3.5 |
OFFSETTING ASSETS AND LIABILI_3
OFFSETTING ASSETS AND LIABILITIES - Offsetting Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 | |
Offsetting of derivative assets | |||
Gross amounts of recognized assets | $ 449 | $ 693 | |
Gross amounts offset in the balance sheet | 0 | 0 | |
Net amounts of assets presented in the balance sheet | [1] | 449 | 693 |
Gross amounts not offset in the balance sheet | |||
Financial instruments | 0 | 0 | |
Cash collateral received/(posted) | 0 | 0 | |
Net amount | $ 449 | $ 693 | |
[1] | Includes amounts relating to consolidated variable interest entities. See Note 1 and Note 10. |
OFFSETTING ASSETS AND LIABILI_4
OFFSETTING ASSETS AND LIABILITIES - Offsetting Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Repurchase agreements | ||
Gross amounts of recognized liabilities | $ 1,176,966 | $ 1,815,934 |
Gross amounts offset in the balance sheet | 0 | 0 |
Net amounts of liabilities presented in the balance sheet | 1,176,966 | 1,815,934 |
Gross amounts not offset in the balance sheet | ||
Financial instruments collateral | 1,176,966 | 1,815,934 |
Cash collateral posted/(received) | 0 | 0 |
Net amount | 0 | 0 |
Total | ||
Gross amounts of recognized liabilities | 1,176,966 | 1,815,934 |
Gross amounts offset in the balance sheet | 0 | 0 |
Net amounts of liabilities presented in the balance sheet | 1,176,966 | 1,815,934 |
Gross amounts not offset in the balance sheet | ||
Financial instruments collateral | 1,176,966 | 1,815,934 |
Cash collateral posted/(received) | 0 | 0 |
Net amount | $ 0 | $ 0 |
CONSOLIDATED VARIABLE INTERES_3
CONSOLIDATED VARIABLE INTEREST ENTITIES (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | |||
Restricted cash | [1] | $ 41,897 | $ 297,575 | ||||||
Accrued interest receivable | [1] | 18,259 | 21,066 | ||||||
Other assets | [1] | 159,314 | 53,348 | ||||||
Total assets | [1] | 6,359,463 | 6,669,152 | ||||||
Debt obligations, net | [1] | 4,714,510 | 4,859,873 | ||||||
Accrued expenses | [1] | 36,179 | 72,397 | ||||||
Total liabilities | [1] | 4,837,669 | 5,030,175 | ||||||
Total equity | 1,521,794 | [1] | $ 1,508,380 | 1,638,977 | [1] | $ 1,639,250 | $ 1,648,074 | $ 1,643,635 | |
Total liabilities and equity | [1] | 6,359,463 | $ 6,669,152 | ||||||
Variable Interest Entity, Primary Beneficiary | |||||||||
Restricted cash | 8,649 | ||||||||
Mortgage loan receivables held for investment, net, at amortized cost | 434,519 | ||||||||
Accrued interest receivable | 1,620 | ||||||||
Other assets | 5,451 | ||||||||
Total assets | 450,239 | ||||||||
Debt obligations, net | 281,625 | ||||||||
Accrued expenses | 653 | ||||||||
Total liabilities | 282,278 | ||||||||
Net equity in VIEs (eliminated in consolidation) | 167,961 | ||||||||
Total equity | 167,961 | ||||||||
Total liabilities and equity | $ 450,239 | ||||||||
[1] | Includes amounts relating to consolidated variable interest entities. See Note 1 and Note 10. |
EQUITY STRUCTURE AND ACCOUNTS -
EQUITY STRUCTURE AND ACCOUNTS - Additional Information (Details) - USD ($) | 9 Months Ended | ||||
Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Oct. 30, 2014 | |
Class of Stock [Line Items] | |||||
Interest held in third parties | 100.00% | 89.80% | |||
2014 Share Repurchase Authorization Program | |||||
Class of Stock [Line Items] | |||||
Remaining amount available for repurchase | $ 38,600,000 | ||||
Percentage of aggregate common stock outstanding under Repurchase Program | 4.50% | ||||
Closing price (in dollars per share) | $ 7.12 | ||||
Series REIT LP Units | |||||
Class of Stock [Line Items] | |||||
Exchange of noncontrolling interest for common stock, units exchanged (in shares) | 12,160,000 | 1,140,000 | |||
Series TRS LP Units | |||||
Class of Stock [Line Items] | |||||
Exchange of noncontrolling interest for common stock, units exchanged (in shares) | 12,160,000 | 1,140,000 | |||
Common Class A | |||||
Class of Stock [Line Items] | |||||
Exchange of noncontrolling interest for common stock, units exchanged (in shares) | 12,160,000 | ||||
Exchange of noncontrolling interest for common stock (in shares) | 1,140,000 | ||||
Common Class A | 2014 Share Repurchase Authorization Program | |||||
Class of Stock [Line Items] | |||||
Additional authorizations | $ 50,000,000 | ||||
Remaining amount available for repurchase | $ 38,554,000 | $ 41,132,000 | $ 41,132,000 | $ 41,769,000 | |
Common Class B | |||||
Class of Stock [Line Items] | |||||
Exchange of noncontrolling interest for common stock, units exchanged (in shares) | (12,160,000) | ||||
Exchange of noncontrolling interest for common stock (in shares) | (1,140,000) |
EQUITY STRUCTURE AND ACCOUNTS_2
EQUITY STRUCTURE AND ACCOUNTS - Schedule of Repurchase of Treasury Stock Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | |
Treasury Stock [Roll Forward] | |||
Repurchases paid | $ (895) | $ (2,583) | $ (637) |
2014 Share Repurchase Authorization Program | |||
Treasury Stock [Roll Forward] | |||
Remaining amount available for repurchase | 38,600 | $ 38,600 | |
2014 Share Repurchase Authorization Program | Common Class A | |||
Class of Stock [Line Items] | |||
Purchase of treasury stock (in shares) | 334,251 | 40,065 | |
Treasury Stock [Roll Forward] | |||
Remaining amount available for repurchase | $ 41,132 | $ 41,769 | |
Additional authorizations | 0 | 0 | |
Repurchases paid | (2,578) | (637) | |
Repurchases unsettled | 0 | 0 | |
Remaining amount available for repurchase | $ 38,554 | $ 38,554 | $ 41,132 |
EQUITY STRUCTURE AND ACCOUNTS_3
EQUITY STRUCTURE AND ACCOUNTS - Dividends Declared (Details) - $ / shares | Aug. 31, 2020 | May 28, 2020 | Feb. 27, 2020 | Aug. 22, 2019 | May 30, 2019 | Feb. 27, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 |
Common Class A | ||||||||||
Class of Stock [Line Items] | ||||||||||
Dividends per share of Class A common stock (in dollars per share) | $ 0.200 | $ 0.200 | $ 0.340 | $ 0.340 | $ 0.340 | $ 0.340 | $ 0.200 | $ 0.340 | $ 0.740 | $ 1.020 |
EQUITY STRUCTURE AND ACCOUNTS_4
EQUITY STRUCTURE AND ACCOUNTS - Schedule of Dividends Declared and Paid (Details) - $ / shares | Aug. 31, 2020 | May 28, 2020 | Feb. 27, 2020 | Aug. 22, 2019 | May 30, 2019 | Feb. 27, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 |
Common Class A | ||||||||||
Class of Stock [Line Items] | ||||||||||
Dividends per share of Class A common stock (in dollars per share) | $ 0.200 | $ 0.200 | $ 0.340 | $ 0.340 | $ 0.340 | $ 0.340 | $ 0.200 | $ 0.340 | $ 0.740 | $ 1.020 |
EQUITY STRUCTURE AND ACCOUNTS_5
EQUITY STRUCTURE AND ACCOUNTS - Changes in Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |||
AOCI Attributable to Parent [Roll Forward] | ||||||
Beginning Balance | $ 1,508,380 | $ 1,648,074 | $ 1,638,977 | [1] | $ 1,643,635 | |
Other comprehensive income (loss) | 18,741 | (2,009) | (33,143) | 16,775 | ||
Exchange of noncontrolling interest for common stock | 0 | 0 | ||||
Rebalancing of ownership percentage between Company and Operating Partnership | 0 | 0 | ||||
Ending Balance | 1,521,794 | [1] | 1,639,250 | 1,521,794 | [1] | 1,639,250 |
AOCI Attributable to Parent | ||||||
AOCI Attributable to Parent [Roll Forward] | ||||||
Beginning Balance | (45,080) | 12,171 | 4,218 | (4,649) | ||
Other comprehensive income (loss) | 18,595 | (1,804) | (27,935) | 14,935 | ||
Exchange of noncontrolling interest for common stock | (6,953) | 64 | ||||
Rebalancing of ownership percentage between Company and Operating Partnership | 2,222 | 17 | ||||
Ending Balance | (28,448) | 10,367 | (28,448) | 10,367 | ||
Accumulated Other Comprehensive Income (Loss) of Noncontrolling Interests | ||||||
AOCI Attributable to Parent [Roll Forward] | ||||||
Beginning Balance | 477 | (588) | ||||
Other comprehensive income (loss) | (5,208) | 1,840 | ||||
Exchange of noncontrolling interest for common stock | 6,953 | (64) | ||||
Rebalancing of ownership percentage between Company and Operating Partnership | (2,222) | (17) | ||||
Ending Balance | 0 | 1,171 | 0 | 1,171 | ||
Total Accumulated Other Comprehensive Income (Loss) | ||||||
AOCI Attributable to Parent [Roll Forward] | ||||||
Beginning Balance | 4,695 | (5,237) | ||||
Ending Balance | $ (28,448) | $ 11,538 | $ (28,448) | $ 11,538 | ||
[1] | Includes amounts relating to consolidated variable interest entities. See Note 1 and Note 10. |
NONCONTROLLING INTERESTS (Detai
NONCONTROLLING INTERESTS (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2020USD ($)propertyJoint_Venture | |
Consolidated Joint Venture | |
Noncontrolling Interest [Line Items] | |
Number of consolidated joint ventures | Joint_Venture | 4 |
Consolidated Joint Venture | Isla Vista, CA | Student Housing | |
Noncontrolling Interest [Line Items] | |
Number of real estate properties | property | 40 |
Property book value | $ 82 |
Consolidated Joint Venture | Richmond, VA | Office Building | |
Noncontrolling Interest [Line Items] | |
Number of real estate properties | property | 11 |
Property book value | $ 71.7 |
Consolidated Joint Venture | Miami, FL | Apartment Building | |
Noncontrolling Interest [Line Items] | |
Property book value | 37.1 |
Consolidated Joint Venture | Oakland County, MI | Office Building | |
Noncontrolling Interest [Line Items] | |
Property book value | $ 9.2 |
Minimum | Consolidated Joint Venture | Noncontrolling Interest in Consolidated Joint Ventures | |
Noncontrolling Interest [Line Items] | |
Noncontrolling interest ownership | 10.00% |
Maximum | Consolidated Joint Venture | Noncontrolling Interest in Consolidated Joint Ventures | |
Noncontrolling Interest [Line Items] | |
Noncontrolling interest ownership | 25.00% |
Noncontrolling Interest in Operating Partnership | |
Noncontrolling Interest [Line Items] | |
Decrease in noncontrolling interest in Operating Partnership | $ 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, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Weighted average shares outstanding: | ||||
Basic (in shares) | 117,481,812 | 106,004,152 | 110,233,748 | 105,264,752 |
Diluted (in shares) | 118,791,927 | 106,603,713 | 110,233,748 | 106,232,581 |
Common Class A | ||||
Earnings Per Share | ||||
Basic Net income (loss) available for Class A common shareholders | $ 17,188 | $ 27,576 | $ (2,729) | $ 81,996 |
Diluted Net income (loss) available for Class A common shareholders | $ 17,188 | $ 27,576 | $ (2,729) | $ 81,996 |
Weighted average shares outstanding: | ||||
Basic (in shares) | 117,481,812 | 106,004,152 | 110,233,748 | 105,264,752 |
Diluted (in shares) | 118,791,927 | 106,603,713 | 110,233,748 | 106,232,581 |
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, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Denominator: | ||||
Weighted average number of shares of Class A common stock outstanding (in shares) | 117,481,812 | 106,004,152 | 110,233,748 | 105,264,752 |
Basic net income (loss) per share of Class A common stock (in dollars per share) | $ 0.15 | $ 0.26 | $ (0.02) | $ 0.78 |
Denominator: | ||||
Weighted average number of shares of Class A common stock outstanding (in shares) | 117,481,812 | 106,004,152 | 110,233,748 | 105,264,752 |
Diluted weighted average number of shares of Class A common stock outstanding (in shares) | 118,791,927 | 106,603,713 | 110,233,748 | 106,232,581 |
Diluted net income (loss) per share of Class A common stock (in dollars per share) | $ 0.14 | $ 0.26 | $ (0.02) | $ 0.77 |
Common Class A | ||||
Numerator: | ||||
Net income (loss) attributable to Class A common shareholders | $ 17,188 | $ 27,576 | $ (2,729) | $ 81,996 |
Denominator: | ||||
Weighted average number of shares of Class A common stock outstanding (in shares) | 117,481,812 | 106,004,152 | 110,233,748 | 105,264,752 |
Basic net income (loss) per share of Class A common stock (in dollars per share) | $ 0.15 | $ 0.26 | $ (0.02) | $ 0.78 |
Numerator: | ||||
Net income (loss) attributable to Class A common shareholders | $ 17,188 | $ 27,576 | $ (2,729) | $ 81,996 |
Amounts attributable to operating partnership’s share of Ladder Capital Corp net income (loss) | 0 | 0 | 0 | 0 |
Additional corporate tax (expense) benefit | 0 | 0 | 0 | 0 |
Diluted net income (loss) attributable to Class A common shareholders | $ 17,188 | $ 27,576 | $ (2,729) | $ 81,996 |
Denominator: | ||||
Weighted average number of shares of Class A common stock outstanding (in shares) | 117,481,812 | 106,004,152 | 110,233,748 | 105,264,752 |
Shares issuable relating to converted Class B common shareholders (in shares) | 1,217,761 | 0 | 0 | 0 |
Diluted weighted average number of shares of Class A common stock outstanding (in shares) | 118,791,927 | 106,603,713 | 110,233,748 | 106,232,581 |
Diluted net income (loss) per share of Class A common stock (in dollars per share) | $ 0.14 | $ 0.26 | $ (0.02) | $ 0.77 |
Restricted Stock | Common Class A | ||||
Denominator: | ||||
Incremental shares of stock based compensation (in shares) | 92,354 | 599,561 | 0 | 967,829 |
Stock Options | Common Class A | ||||
Denominator: | ||||
Incremental shares of stock based compensation (in shares) | 0 | 0 | 0 | 0 |
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, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Recognized equity based compensation expense | $ 4,219 | $ 3,575 | $ 20,957 | $ 18,336 |
Stock Options Exercised | 270 | 270 | ||
Bonus Expense | 517 | 6,533 | 487 | 21,035 |
Total | 4,642 | 10,451 | 20,043 | 40,418 |
Phantom Equity Investment Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Recognized equity based compensation expense | $ (94) | $ 343 | $ (1,671) | $ 1,047 |
STOCK BASED AND OTHER COMPENS_4
STOCK BASED AND OTHER COMPENSATION PLANS - Summary of Grants (Details) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of Shares/Options (in shares) | 1,466,337 | |||
Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock Options (in shares) | 0 | 0 | 0 | 12,073 |
Common Class A | Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of Shares/Options (in shares) | 0 | 24,125 | 1,466,337 | 1,569,694 |
Weighted Average Fair Value Per Share (in dollars per share) | $ 0 | $ 16.58 | $ 18.72 | $ 17.54 |
Common Class A | Dividend Declared | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of Shares/Options (in shares) | 0 | 0 | 0 | 11,113 |
Weighted Average Fair Value Per Share (in dollars per share) | $ 0 | $ 0 | $ 0 | $ 16.61 |
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, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Restricted Stock | ||||
Number of Shares Nonvested Other than Options [Roll Forward] | ||||
Nonvested/Outstanding (in shares) | 1,436,683 | |||
Granted (in shares) | 1,466,337 | |||
Vested (in shares) | (1,221,279) | |||
Forfeited (in shares) | (24,266) | |||
Nonvested/Outstanding (in shares) | 1,657,475 | 1,657,475 | ||
Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares [Roll Forward] | ||||
Nonvested/Outstanding (in shares) | 994,208 | |||
Granted (in shares) | 0 | 0 | 0 | 12,073 |
Exercised (in shares) | (83,845) | |||
Forfeited (in shares) | 0 | |||
Expired (in shares) | 0 | |||
Nonvested/Outstanding (in shares) | 910,363 | 910,363 | ||
Exercisable (in shares) | 910,363 | 910,363 |
STOCK BASED AND OTHER COMPENS_6
STOCK BASED AND OTHER COMPENSATION PLANS - Additional Information (Details) | Mar. 26, 2020shares | Feb. 18, 2020USD ($)installmentshares | Feb. 06, 2020USD ($) | Feb. 18, 2019shares | Feb. 07, 2019USD ($) | Sep. 30, 2020USD ($)securityshares | Sep. 30, 2019USD ($)shares | Sep. 30, 2020USD ($)securityshares | Sep. 30, 2019USD ($)shares | Jun. 19, 2017shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Unrecognized compensation cost | $ | $ 18,000,000 | $ 18,000,000 | ||||||||
Period of recognition for unrecognized compensation costs | 22 months 24 days | |||||||||
Remaining vesting period | 29 months | |||||||||
Aggregate value of awards granted | $ | $ 12,000,000 | |||||||||
Accrued bonuses | $ | $ 55,200,000 | $ 61,400,000 | ||||||||
Equity based compensation | $ | $ 27,000,000 | $ 26,600,000 | ||||||||
Bonus expense | $ | 4,219,000 | $ 3,575,000 | $ 20,957,000 | $ 18,336,000 | ||||||
Restricted Stock | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of restricted shares granted (in shares) | 1,466,337 | |||||||||
Forfeited (in shares) | 24,266 | |||||||||
2014 Omnibus Incentive Plan | Management Grantees | Restricted Stock | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Reversal of previous compensation expense | $ | (1,000,000) | $ (1,000,000) | ||||||||
Incremental compensation cost | $ | $ 100,000 | $ 100,000 | ||||||||
Number of employees eligible for performance share waiver | security | 47 | 47 | ||||||||
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 | installment | 3 | |||||||||
Bonus Expense | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Bonus expense | $ | $ 500,000 | $ 6,500,000 | $ 500,000 | $ 21,000,000 | ||||||
Common Class A | Restricted Stock | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of installments in which awards are vested | installment | 3 | |||||||||
Number of restricted shares granted (in shares) | 0 | 24,125 | 1,466,337 | 1,569,694 | ||||||
Common Class A | Board of Directors | Restricted Stock | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of restricted shares granted (in shares) | 24,036 | |||||||||
Vesting period | 1 year | |||||||||
Forfeited (in shares) | 5,803 | |||||||||
Grant date fair value | $ | $ 400,000 | |||||||||
Common Class A | Non-Management Grantee | Restricted Stock | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of installments in which awards are vested | installment | 3 | |||||||||
Aggregate value of awards granted | $ | $ 15,000,000 | |||||||||
Number of restricted shares granted (in shares) | 802,611 | |||||||||
Vesting percentage | 50.00% | |||||||||
Common Class A | 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 | |||||||||
Common Class A | 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 | |||||||||
Common Class A | 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 | |||||||||
Common Class A | 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 | |||||||||
Common Class A | 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 | |||||||||
Common Class A | 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 | |||||||||
Common Class A | 2014 Omnibus Incentive Plan | Management Grantees | Restricted Stock | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of restricted shares granted (in shares) | 639,690 |
FAIR VALUE OF FINANCIAL INSTR_3
FAIR VALUE OF FINANCIAL INSTRUMENTS - Estimated Fair Values of Financial Instruments (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Sep. 30, 2020USD ($) | Dec. 31, 2019USD ($) | Jan. 01, 2020USD ($) | |
Assets: | ||||
Fair Value | $ 2,801,690 | $ 3,451,739 | ||
Allowance for credit losses | (47,084) | (20,500) | $ (11,600) | |
Liabilities: | ||||
Fair Value | $ 4,066,411 | 4,943,914 | ||
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 | $ 1,436,294 | 1,709,586 | ||
Recurring | CMBS | Internal Model Third Party Inputs Valuation Technique | ||||
Assets: | ||||
Outstanding Face Amount | 1,420,752 | 1,640,597 | ||
Amortized Cost Basis/Purchase Price | 1,420,537 | 1,640,905 | ||
Fair Value | $ 1,390,562 | $ 1,644,322 | ||
Liabilities: | ||||
Financial instruments, measurement input | 0.0154 | 0.0308 | ||
Weighted average remaining maturity/duration | 2 years 1 month 6 days | 2 years 4 months 28 days | ||
Recurring | CMBS interest-only | Internal Model Third Party Inputs Valuation Technique | ||||
Assets: | ||||
Outstanding Face Amount | $ 1,506,152 | $ 1,559,160 | ||
Amortized Cost Basis/Purchase Price | 23,063 | 28,553 | ||
Fair Value | $ 23,741 | $ 29,146 | ||
Liabilities: | ||||
Financial instruments, measurement input | 0.0332 | 0.0304 | ||
Weighted average remaining maturity/duration | 2 years 3 months 10 days | 2 years 6 months 10 days | ||
Recurring | GNMA interest-only | Internal Model Third Party Inputs Valuation Technique | ||||
Assets: | ||||
Outstanding Face Amount | $ 87,917 | $ 109,783 | ||
Amortized Cost Basis/Purchase Price | 1,175 | 1,982 | ||
Fair Value | $ 1,228 | $ 1,851 | ||
Liabilities: | ||||
Financial instruments, measurement input | 0.0390 | 0.0459 | ||
Weighted average remaining maturity/duration | 3 years 3 months 7 days | 2 years 9 months 7 days | ||
Recurring | Agency securities | Internal Model Third Party Inputs Valuation Technique | ||||
Assets: | ||||
Outstanding Face Amount | $ 595 | $ 629 | ||
Amortized Cost Basis/Purchase Price | 603 | 640 | ||
Fair Value | $ 619 | $ 637 | ||
Liabilities: | ||||
Financial instruments, measurement input | 0.0166 | 0.0173 | ||
Weighted average remaining maturity/duration | 1 year 4 months 24 days | 1 year 9 months 29 days | ||
Recurring | GNMA permanent securities | Internal Model Third Party Inputs Valuation Technique | ||||
Assets: | ||||
Outstanding Face Amount | $ 30,542 | $ 31,461 | ||
Amortized Cost Basis/Purchase Price | 30,662 | 31,681 | ||
Fair Value | $ 31,494 | $ 32,369 | ||
Liabilities: | ||||
Financial instruments, measurement input | 0.0349 | 0.0317 | ||
Weighted average remaining maturity/duration | 2 years 2 months 12 days | 1 year 11 months 4 days | ||
Recurring | Equity securities | Internal Model Third Party Inputs Valuation Technique | ||||
Assets: | ||||
Amortized Cost Basis/Purchase Price | $ 12,848 | |||
Fair Value | 12,980 | |||
Recurring | Total mortgage loan receivables held for investment, net, at amortized cost | ||||
Assets: | ||||
Allowance for credit losses | $ (47,084) | |||
Recurring | Total mortgage loan receivables held for investment, net, at amortized cost | Discounted Cash Flow | ||||
Assets: | ||||
Outstanding Face Amount | 2,744,724 | 3,277,596 | ||
Amortized Cost Basis/Purchase Price | 2,731,254 | 3,257,036 | ||
Fair Value | 2,743,359 | $ 3,273,219 | ||
Allowance for credit losses | $ (47,084) | |||
Liabilities: | ||||
Financial instruments, measurement input | 0.0681 | 0.0694 | ||
Weighted average remaining maturity/duration | 1 year 1 month 6 days | 1 year 5 months 4 days | ||
Recurring | Provisions For Loan Losses | ||||
Assets: | ||||
Allowance for credit losses | $ (19) | $ (20,500) | ||
Recurring | Provisions For Loan Losses | Internal Model Third Party Inputs Valuation Technique | ||||
Assets: | ||||
Allowance for credit losses | (19) | |||
Recurring | Mortgage loan receivables held for sale | Internal Model Third Party Inputs Valuation Technique | ||||
Assets: | ||||
Outstanding Face Amount | 30,513 | 122,748 | ||
Amortized Cost Basis/Purchase Price | 30,553 | 122,325 | ||
Fair Value | $ 32,016 | $ 124,989 | ||
Liabilities: | ||||
Financial instruments, measurement input | 0.0405 | 0.0420 | ||
Weighted average remaining maturity/duration | 9 years 5 months 4 days | 9 years 11 months 26 days | ||
Recurring | FHLB stock | FHLB stock | ||||
Assets: | ||||
Outstanding Face Amount | $ 61,619 | $ 61,619 | ||
Amortized Cost Basis/Purchase Price | 61,619 | 61,619 | ||
Fair Value | $ 61,619 | $ 61,619 | ||
Liabilities: | ||||
Financial instruments, measurement input | 0.0350 | 0.0475 | ||
Recurring | Nonhedge derivatives | Counterparty Quotations Valuation Technique | ||||
Assets: | ||||
Nonhedge derivative assets | $ 66,800 | $ 340,200 | ||
Fair Value | $ 449 | $ 693 | ||
Liabilities: | ||||
Weighted average remaining maturity/duration | 3 months | 3 months | ||
Recurring | Repurchase agreements - short-term | Discounted Cash Flow | ||||
Liabilities: | ||||
Outstanding Face Amount | $ 1,140,350 | $ 1,781,253 | ||
Amortized Cost Basis/Purchase Price | 1,140,350 | 1,781,253 | ||
Fair Value | $ 1,140,350 | $ 1,781,253 | ||
Financial instruments, measurement input | 0.0155 | 0.0250 | ||
Weighted average remaining maturity/duration | 2 months 26 days | 2 months 8 days | ||
Recurring | Repurchase agreements - long-term | Discounted Cash Flow | ||||
Liabilities: | ||||
Outstanding Face Amount | $ 36,616 | $ 34,681 | ||
Amortized Cost Basis/Purchase Price | 36,616 | 34,681 | ||
Fair Value | $ 36,616 | $ 34,681 | ||
Financial instruments, measurement input | 0.0064 | 0.0281 | ||
Weighted average remaining maturity/duration | 1 year 2 months 23 days | 1 year 4 months 28 days | ||
Recurring | Revolving Credit Facility | Discounted Cash Flow | ||||
Liabilities: | ||||
Outstanding Face Amount | $ 266,430 | |||
Amortized Cost Basis/Purchase Price | 266,430 | |||
Fair Value | $ 266,430 | |||
Financial instruments, measurement input | 0.0316 | |||
Weighted average remaining maturity/duration | 21 days | |||
Recurring | Mortgage loan financing | Discounted Cash Flow | ||||
Liabilities: | ||||
Outstanding Face Amount | $ 765,516 | $ 807,854 | ||
Amortized Cost Basis/Purchase Price | 769,968 | 812,606 | ||
Fair Value | $ 791,391 | $ 838,766 | ||
Financial instruments, measurement input | 0.0498 | 0.0491 | ||
Weighted average remaining maturity/duration | 4 years 9 months | 5 years 7 months 24 days | ||
Recurring | Secured Financing Facility | Discounted Cash Flow | ||||
Liabilities: | ||||
Outstanding Face Amount | $ 190,582 | |||
Amortized Cost Basis/Purchase Price | 190,582 | |||
Fair Value | $ 190,582 | |||
Financial instruments, measurement input | 0.1075 | |||
Weighted average remaining maturity/duration | 2 years 7 months 6 days | |||
Recurring | CLO debt | Discounted Cash Flow | ||||
Liabilities: | ||||
Outstanding Face Amount | $ 281,625 | |||
Amortized Cost Basis/Purchase Price | 281,625 | |||
Fair Value | $ 281,625 | |||
Financial instruments, measurement input | 0.0550 | |||
Weighted average remaining maturity/duration | 3 years 7 months 17 days | |||
Recurring | Borrowings from the FHLB | Discounted Cash Flow | ||||
Liabilities: | ||||
Outstanding Face Amount | $ 326,000 | $ 1,073,500 | ||
Amortized Cost Basis/Purchase Price | 326,000 | 1,073,500 | ||
Fair Value | $ 327,418 | $ 1,080,354 | ||
Financial instruments, measurement input | 0.0133 | 0.0233 | ||
Weighted average remaining maturity/duration | 2 years 8 months 4 days | 2 years 29 days | ||
Recurring | Senior unsecured notes | Broker Quotations Pricing Services Valuation Technique | ||||
Liabilities: | ||||
Outstanding Face Amount | $ 1,716,994 | $ 1,166,201 | ||
Amortized Cost Basis/Purchase Price | 1,702,939 | 1,157,833 | ||
Fair Value | $ 1,031,999 | $ 1,208,860 | ||
Financial instruments, measurement input | 0.0496 | 0.0539 | ||
Weighted average remaining maturity/duration | 3 years 11 months 8 days | 3 years 3 months 10 days | ||
Recurring | Nonhedge derivatives | Counterparty Quotations Valuation Technique | ||||
Liabilities: | ||||
Nonhedge derivative liabilities | $ 69,571 | |||
Fair Value | $ 0 | |||
Weighted average remaining maturity/duration | 4 months 9 days |
FAIR VALUE OF FINANCIAL INSTR_4
FAIR VALUE OF FINANCIAL INSTRUMENTS - Summary of Financial Assets and Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Jan. 01, 2020 | Dec. 31, 2019 |
Assets: | |||
Fair value of assets | $ 2,801,690 | $ 3,451,739 | |
Provision for current expected credit losses | (47,084) | $ (11,600) | (20,500) |
Liabilities: | |||
Fair value of liabilities | 4,066,411 | 4,943,914 | |
Repurchase agreements - short-term | |||
Liabilities: | |||
Outstanding Face Amount | 1,140,350 | 1,781,253 | |
Fair value of liabilities | 1,140,350 | 1,781,253 | |
Repurchase agreements - long-term | |||
Liabilities: | |||
Outstanding Face Amount | 36,616 | 34,681 | |
Fair value of liabilities | 36,616 | 34,681 | |
Revolving Credit Facility | |||
Liabilities: | |||
Outstanding Face Amount | 266,430 | ||
Fair value of liabilities | 266,430 | ||
Mortgage loan financing | |||
Liabilities: | |||
Outstanding Face Amount | 765,516 | 807,854 | |
Fair value of liabilities | 791,391 | 838,766 | |
Secured Financing Facility | |||
Liabilities: | |||
Outstanding Face Amount | 190,582 | ||
Fair value of liabilities | 190,582 | ||
CLO debt | |||
Liabilities: | |||
Outstanding Face Amount | 281,625 | ||
Fair value of liabilities | 281,625 | ||
Borrowings from the FHLB | |||
Liabilities: | |||
Outstanding Face Amount | 326,000 | 1,073,500 | |
Fair value of liabilities | 327,418 | 1,080,354 | |
Senior unsecured notes | |||
Liabilities: | |||
Outstanding Face Amount | 1,716,994 | 1,166,201 | |
Fair value of liabilities | 1,031,999 | 1,208,860 | |
CMBS | |||
Assets: | |||
Outstanding Face Amount | 11,550 | 12,121 | |
Fair value of assets | 11,093 | 11,608 | |
CMBS interest-only | |||
Assets: | |||
Outstanding Face Amount | 10,593 | 11,099 | |
Fair value of assets | 706 | 804 | |
Provision for current expected credit losses | (19) | ||
Total mortgage loan receivables held for investment, net, at amortized cost | |||
Assets: | |||
Outstanding Face Amount | 2,744,724 | 3,277,597 | |
Fair value of assets | 2,743,359 | 3,273,219 | |
Mortgage loan receivables held for sale | |||
Assets: | |||
Outstanding Face Amount | 30,513 | 122,748 | |
Fair value of assets | 32,016 | 124,989 | |
FHLB stock | |||
Assets: | |||
Outstanding Face Amount | 61,619 | 61,619 | |
Fair value of assets | 61,619 | 61,619 | |
Level 1 | |||
Assets: | |||
Fair value of assets | 0 | 0 | |
Provision for current expected credit 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 | Revolving Credit Facility | |||
Liabilities: | |||
Fair value of liabilities | 0 | ||
Level 1 | Mortgage loan financing | |||
Liabilities: | |||
Fair value of liabilities | 0 | 0 | |
Level 1 | Secured Financing Facility | |||
Liabilities: | |||
Fair value of liabilities | 0 | ||
Level 1 | CLO debt | |||
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 current expected credit 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 | Revolving Credit Facility | |||
Liabilities: | |||
Fair value of liabilities | 0 | ||
Level 2 | Mortgage loan financing | |||
Liabilities: | |||
Fair value of liabilities | 0 | 0 | |
Level 2 | Secured Financing Facility | |||
Liabilities: | |||
Fair value of liabilities | 0 | ||
Level 2 | CLO debt | |||
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 | 2,801,690 | 3,451,739 | |
Provision for current expected credit losses | (47,084) | (20,500) | |
Liabilities: | |||
Fair value of liabilities | 4,066,411 | 4,943,914 | |
Level 3 | Repurchase agreements - short-term | |||
Liabilities: | |||
Fair value of liabilities | 1,140,350 | 1,781,253 | |
Level 3 | Repurchase agreements - long-term | |||
Liabilities: | |||
Fair value of liabilities | 36,616 | 34,681 | |
Level 3 | Revolving Credit Facility | |||
Liabilities: | |||
Fair value of liabilities | 266,430 | ||
Level 3 | Mortgage loan financing | |||
Liabilities: | |||
Fair value of liabilities | 791,391 | 838,766 | |
Level 3 | Secured Financing Facility | |||
Liabilities: | |||
Fair value of liabilities | 190,582 | ||
Level 3 | CLO debt | |||
Liabilities: | |||
Fair value of liabilities | 281,625 | ||
Level 3 | Borrowings from the FHLB | |||
Liabilities: | |||
Fair value of liabilities | 327,418 | 1,080,354 | |
Level 3 | Senior unsecured notes | |||
Liabilities: | |||
Fair value of liabilities | 1,031,999 | 1,208,860 | |
Level 3 | CMBS | |||
Assets: | |||
Fair value of assets | 11,093 | 11,608 | |
Level 3 | CMBS interest-only | |||
Assets: | |||
Fair value of assets | 706 | 804 | |
Provision for current expected credit losses | (19) | ||
Level 3 | Total mortgage loan receivables held for investment, net, at amortized cost | |||
Assets: | |||
Fair value of assets | 2,743,359 | 3,273,219 | |
Level 3 | Mortgage loan receivables held for sale | |||
Assets: | |||
Fair value of assets | 32,016 | 124,989 | |
Level 3 | FHLB stock | |||
Assets: | |||
Fair value of assets | 61,619 | 61,619 | |
Recurring | |||
Assets: | |||
Fair value of assets | 1,436,294 | 1,709,586 | |
Recurring | Nonhedge derivatives | |||
Liabilities: | |||
Nonhedge derivative liabilities | 69,571 | ||
Fair value of liabilities | 0 | ||
Recurring | CMBS | |||
Assets: | |||
Outstanding Face Amount | 1,409,202 | 1,628,476 | |
Fair value of assets | 1,379,469 | 1,632,714 | |
Recurring | CMBS interest-only | |||
Assets: | |||
Outstanding Face Amount | 1,495,559 | 1,548,061 | |
Fair value of assets | 23,035 | 28,342 | |
Recurring | GNMA interest-only | |||
Assets: | |||
Outstanding Face Amount | 87,917 | 109,783 | |
Fair value of assets | 1,228 | 1,851 | |
Recurring | Agency securities | |||
Assets: | |||
Outstanding Face Amount | 595 | 629 | |
Fair value of assets | 619 | 637 | |
Recurring | GNMA permanent securities | |||
Assets: | |||
Outstanding Face Amount | 30,542 | 31,461 | |
Fair value of assets | 31,494 | 32,369 | |
Recurring | Equity securities | |||
Assets: | |||
Fair value of assets | 12,980 | ||
Recurring | Nonhedge derivatives | |||
Assets: | |||
Fair value of assets | 449 | 693 | |
Nonhedge derivative assets | 66,800 | 340,200 | |
Recurring | Level 1 | |||
Assets: | |||
Fair value of assets | 0 | 12,980 | |
Recurring | Level 1 | Nonhedge derivatives | |||
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 | Equity securities | |||
Assets: | |||
Fair value of assets | 12,980 | ||
Recurring | Level 1 | Nonhedge derivatives | |||
Assets: | |||
Fair value of assets | 0 | 0 | |
Recurring | Level 2 | |||
Assets: | |||
Fair value of assets | 449 | 693 | |
Recurring | Level 2 | Nonhedge derivatives | |||
Liabilities: | |||
Fair value of liabilities | 0 | ||
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 | Nonhedge derivatives | |||
Assets: | |||
Fair value of assets | 449 | 693 | |
Recurring | Level 3 | |||
Assets: | |||
Fair value of assets | 1,435,845 | 1,695,913 | |
Recurring | Level 3 | Nonhedge derivatives | |||
Liabilities: | |||
Fair value of liabilities | 0 | ||
Recurring | Level 3 | CMBS | |||
Assets: | |||
Fair value of assets | 1,379,469 | 1,632,714 | |
Recurring | Level 3 | CMBS interest-only | |||
Assets: | |||
Fair value of assets | 23,035 | 28,342 | |
Recurring | Level 3 | GNMA interest-only | |||
Assets: | |||
Fair value of assets | 1,228 | 1,851 | |
Recurring | Level 3 | Agency securities | |||
Assets: | |||
Fair value of assets | 619 | 637 | |
Recurring | Level 3 | GNMA permanent securities | |||
Assets: | |||
Fair value of assets | 31,494 | 32,369 | |
Recurring | Level 3 | Nonhedge derivatives | |||
Assets: | |||
Fair value of assets | $ 0 | $ 0 |
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, 2020 | Sep. 30, 2019 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | $ 1,695,913 | $ 1,385,957 |
Transfer from level 2 | 0 | 0 |
Purchases | 438,707 | 1,193,671 |
Sales | (551,676) | (533,811) |
Paydowns/maturities | (94,659) | (178,402) |
Amortization of premium/discount | (6,406) | (9,333) |
Unrealized gain/(loss) | (32,959) | 16,813 |
Realized gain/(loss) on sale | (13,075) | 10,639 |
Ending balance | $ 1,435,845 | $ 1,885,534 |
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, 2020USD ($) | Dec. 31, 2019USD ($) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Carrying Value | $ 1,447,644 | $ 1,708,325 |
CMBS | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Carrying Value | 1,390,562 | 1,644,322 |
CMBS interest-only | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Carrying Value | 23,741 | 29,146 |
GNMA interest-only | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Carrying Value | 1,228 | 1,851 |
Agency securities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Carrying Value | 619 | 637 |
GNMA permanent securities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Carrying Value | $ 31,494 | $ 32,369 |
Level 3 | CMBS | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Duration | 0 years | 0 years |
Level 3 | CMBS | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Duration | 2 years 6 months 21 days | 1 year 7 months 17 days |
Level 3 | CMBS | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Duration | 6 years 18 days | 6 years 10 months 13 days |
Level 3 | CMBS interest-only | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Duration | 3 months 29 days | 3 months 3 days |
Level 3 | CMBS interest-only | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Duration | 2 years 3 months 14 days | 2 years 5 months 19 days |
Level 3 | CMBS interest-only | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Duration | 3 years 2 months 15 days | 3 years 6 months 3 days |
Level 3 | GNMA interest-only | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Duration | 5 months 12 days | 10 months 6 days |
Level 3 | GNMA interest-only | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Duration | 2 years 6 months 3 days | 2 years 10 months 24 days |
Level 3 | GNMA interest-only | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Duration | 6 years 4 months 13 days | 13 years 8 months 8 days |
Level 3 | Agency securities | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Duration | 0 years | 0 years |
Level 3 | Agency securities | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Duration | 1 year 10 months 13 days | 2 years 3 months 18 days |
Level 3 | Agency securities | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Duration | 2 years 2 months 26 days | 2 years 11 months 1 day |
Level 3 | GNMA permanent securities | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Duration | 1 year 1 month 24 days | 2 years 7 months 6 days |
Level 3 | GNMA permanent securities | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Duration | 9 years 9 months 21 days | 3 years 7 months 9 days |
Level 3 | GNMA permanent securities | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Duration | 14 years 7 months 28 days | 6 years 5 months 26 days |
Level 3 | Yield | CMBS | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 0.0059 | 0 |
Level 3 | Yield | CMBS | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 0.0246 | 0.0311 |
Level 3 | Yield | CMBS | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 0.3164 | 0.1992 |
Level 3 | Yield | CMBS interest-only | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 0.0087 | 0.0157 |
Level 3 | Yield | CMBS interest-only | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 0.0257 | 0.0393 |
Level 3 | Yield | CMBS interest-only | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 0.0994 | 0.0762 |
Level 3 | Yield | GNMA interest-only | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 0 | (0.0482) |
Level 3 | Yield | GNMA interest-only | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 0.0361 | 0.1513 |
Level 3 | Yield | GNMA interest-only | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 0.0905 | 0.445 |
Level 3 | Yield | Agency securities | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 0.0078 | 0 |
Level 3 | Yield | Agency securities | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 0.0089 | 0.017 |
Level 3 | Yield | Agency securities | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 0.0148 | 0.0216 |
Level 3 | Yield | GNMA permanent securities | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 0.0247 | 0.5656 |
Level 3 | Yield | GNMA permanent securities | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 0.0356 | 1.6679 |
Level 3 | Yield | GNMA permanent securities | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 0.0639 | 4.10 |
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 | 99.60 | 97.24 |
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 | 14.41 | 12.36 |
Level 3 | Prepayment speed | GNMA interest-only | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 35 | 35 |
Level 3 | Internal Model Third Party Inputs Valuation Technique | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Carrying Value | $ 1,435,845 | $ 1,695,913 |
Recurring | Internal Model Third Party Inputs Valuation Technique | CMBS | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 0.0154 | 0.0308 |
Duration | 2 years 1 month 6 days | 2 years 4 months 28 days |
Recurring | Internal Model Third Party Inputs Valuation Technique | CMBS interest-only | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 0.0332 | 0.0304 |
Duration | 2 years 3 months 10 days | 2 years 6 months 10 days |
Recurring | Internal Model Third Party Inputs Valuation Technique | GNMA interest-only | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 0.0390 | 0.0459 |
Duration | 3 years 3 months 7 days | 2 years 9 months 7 days |
Recurring | Internal Model Third Party Inputs Valuation Technique | Agency securities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 0.0166 | 0.0173 |
Duration | 1 year 4 months 24 days | 1 year 9 months 29 days |
Recurring | Internal Model Third Party Inputs Valuation Technique | GNMA permanent securities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 0.0349 | 0.0317 |
Duration | 2 years 2 months 12 days | 1 year 11 months 4 days |
Recurring | Level 3 | Internal Model Third Party Inputs Valuation Technique | CMBS | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Carrying Value | $ 1,379,469 | $ 1,632,714 |
Recurring | Level 3 | Internal Model Third Party Inputs Valuation Technique | CMBS interest-only | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Carrying Value | 23,035 | 28,342 |
Recurring | Level 3 | Internal Model Third Party Inputs Valuation Technique | GNMA interest-only | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Carrying Value | 1,228 | 1,851 |
Recurring | Level 3 | Internal Model Third Party Inputs Valuation Technique | Agency securities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Carrying Value | 619 | 637 |
Recurring | Level 3 | Internal Model Third Party Inputs Valuation Technique | GNMA permanent securities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Carrying Value | $ 31,494 | $ 32,369 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Income Tax Contingency [Line Items] | |||||
Income tax expense (benefit) | $ 3.1 | $ 0.4 | $ (11.9) | $ (6.9) | |
Deferred income tax expense (benefit) | (3.1) | $ 0.7 | 6.8 | $ 7.4 | |
Deferred tax asset related to capital losses | 7 | 7 | |||
Deferred tax assets related to interest expense limitation | 1.4 | 1.4 | |||
Fees and other income | $ 2.5 | ||||
Other assets | |||||
Income Tax Contingency [Line Items] | |||||
Deferred tax liabilities | (8.7) | (8.7) | (2.1) | ||
Amount Payable Pursuant to Tax Receivable Agreement | |||||
Income Tax Contingency [Line Items] | |||||
Amount payable pursuant to tax receivable agreement | $ 1.6 | $ 1.6 | $ 1.6 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) | Jun. 22, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Oct. 18, 2016 |
Related Party Transaction [Line Items] | |||||
Realized loss on investment | $ 0 | $ (45,200,000) | $ 100,000 | ||
Affiliated Entity | |||||
Related Party Transaction [Line Items] | |||||
Investment in mutual fund | $ 10,000,000 | ||||
Realized loss on investment | $ (700,000) |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | Jan. 01, 2019 | |
Unfunded Loan Commitments | ||||||
Operating lease liability | $ 1.6 | $ 1.6 | ||||
Operating lease, right-of-use asset | 1.6 | 1.6 | ||||
Tenant reimbursements | 1.7 | $ 1.3 | 4 | $ 4.6 | ||
Provision for loan losses | ||||||
Unfunded Loan Commitments | ||||||
Unfunded commitments of mortgage loan receivables held for investment | $ 227 | $ 227 | $ 286.5 | |||
Unfunded commitments of mortgage loan receivables held for investment, additional funds | 59.00% | |||||
Accounting Standards Update 2016-02 | ||||||
Unfunded Loan Commitments | ||||||
Operating lease liability | $ 3.5 | |||||
Operating lease, right-of-use asset | $ 3.3 |
SEGMENT REPORTING - Additional
SEGMENT REPORTING - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2020segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
SEGMENT REPORTING - Schedule of
SEGMENT REPORTING - Schedule of Segments (Details) - USD ($) | May 01, 2019 | Feb. 06, 2019 | Jun. 30, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Income Statement [Abstract] | ||||||||||
Interest income | $ 54,621,000 | $ 82,251,000 | $ 189,306,000 | $ 254,040,000 | ||||||
Interest expense | (56,398,000) | (51,397,000) | (176,225,000) | (155,015,000) | ||||||
Net interest income (expense) | (1,777,000) | 30,854,000 | 13,081,000 | 99,025,000 | ||||||
(Provision) benefit for loan losses | 2,512,000 | 0 | (23,340,000) | (600,000) | ||||||
Net interest income (expense) after provision for/(release of) loan losses | 735,000 | 30,854,000 | (10,259,000) | 98,425,000 | ||||||
Operating lease income | $ 3,900,000 | 25,464,000 | 24,405,000 | 75,565,000 | 81,106,000 | |||||
Sale of loans, net | 1,127,000 | 11,247,000 | 1,387,000 | 38,589,000 | ||||||
Realized gain (loss) on securities | (303,000) | 3,396,000 | (12,089,000) | 10,726,000 | ||||||
Unrealized gain (loss) on equity securities | 0 | 254,000 | (132,000) | 1,341,000 | ||||||
Unrealized gain (loss) on Agency interest-only securities | 9,000 | 16,000 | 183,000 | 38,000 | ||||||
Realized gain (loss) on sale of real estate, net | $ 0 | 21,588,000 | 2,082,000 | 32,116,000 | 963,000 | |||||
Impairment of real estate | 0 | 0 | $ (1,400,000) | 0 | (1,350,000) | |||||
Fee and other income | 3,051,000 | 5,166,000 | 8,075,000 | 17,047,000 | ||||||
Net result from derivative transactions | 260,000 | (9,465,000) | (15,988,000) | (35,956,000) | ||||||
Earnings (loss) from investment in unconsolidated joint ventures | 447,000 | 1,094,000 | 1,359,000 | 3,617,000 | ||||||
Gain (loss) on extinguishment/defeasance of debt | $ (1,100,000) | 1,167,000 | 0 | 22,244,000 | (1,070,000) | |||||
Total other income (loss) | 52,810,000 | 38,195,000 | 112,720,000 | 115,051,000 | ||||||
Salaries and employee benefits | (7,858,000) | (14,319,000) | (31,880,000) | (52,800,000) | ||||||
Operating expenses(3) | (3,938,000) | (5,314,000) | (15,957,000) | (16,727,000) | ||||||
Real estate operating expenses | (8,060,000) | (6,270,000) | (22,041,000) | (17,776,000) | ||||||
Fee expense | (2,476,000) | (2,056,000) | (5,892,000) | (4,951,000) | ||||||
Depreciation and amortization | $ (400,000) | (9,817,000) | (9,030,000) | (29,642,000) | (29,192,000) | |||||
Total costs and expenses | (32,149,000) | (36,989,000) | (105,412,000) | (121,446,000) | ||||||
Income tax (expense) benefit | (14,000) | (1,112,000) | 5,078,000 | (478,000) | ||||||
Net income (loss) | 21,382,000 | 30,948,000 | 2,127,000 | 91,552,000 | ||||||
Total assets | [1] | 6,359,463,000 | 6,359,463,000 | $ 6,669,152,000 | ||||||
Investment in unconsolidated joint ventures | [1] | 49,155,000 | 49,155,000 | 48,433,000 | ||||||
Investment in FHLB stock | [1] | 61,619,000 | 61,619,000 | 61,619,000 | ||||||
Professional fees | 2,000,000 | 3,000,000 | 9,200,000 | 9,100,000 | ||||||
Operating Segment | ||||||||||
Income Statement [Abstract] | ||||||||||
Investment in unconsolidated joint ventures | 49,200,000 | 49,200,000 | 48,400,000 | |||||||
Operating Segment | Loans | ||||||||||
Income Statement [Abstract] | ||||||||||
Interest income | 48,349,000 | 66,422,000 | 160,896,000 | 209,369,000 | ||||||
Interest expense | (16,319,000) | (12,063,000) | (32,921,000) | (41,043,000) | ||||||
Net interest income (expense) | 32,030,000 | 54,359,000 | 127,975,000 | 168,326,000 | ||||||
(Provision) benefit for loan losses | 2,512,000 | 0 | (23,343,000) | (600,000) | ||||||
Net interest income (expense) after provision for/(release of) loan losses | 34,542,000 | 54,359,000 | 104,632,000 | 167,726,000 | ||||||
Operating lease income | 0 | 0 | 0 | 0 | ||||||
Sale of loans, net | 1,127,000 | 11,247,000 | 1,387,000 | 38,589,000 | ||||||
Realized gain (loss) on securities | 0 | 0 | 0 | 0 | ||||||
Unrealized gain (loss) on equity securities | 0 | 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 | 2,515,000 | 3,839,000 | 6,368,000 | 13,095,000 | ||||||
Net result from derivative transactions | 165,000 | (6,557,000) | (11,774,000) | (20,273,000) | ||||||
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) | 3,807,000 | 8,529,000 | (4,019,000) | 31,411,000 | ||||||
Salaries and employee benefits | 0 | 0 | 0 | 0 | ||||||
Operating expenses(3) | 0 | 0 | 0 | 0 | ||||||
Real estate operating expenses | 0 | 0 | 0 | 0 | ||||||
Fee expense | (2,465,000) | (1,264,000) | (5,129,000) | (3,516,000) | ||||||
Depreciation and amortization | 0 | 0 | 0 | 0 | ||||||
Total costs and expenses | (2,465,000) | (1,264,000) | (5,129,000) | (3,516,000) | ||||||
Income tax (expense) benefit | 0 | 0 | 0 | 0 | ||||||
Net income (loss) | 35,884,000 | 61,624,000 | 95,484,000 | 195,621,000 | ||||||
Total assets | 2,714,723,000 | 2,714,723,000 | 3,358,861,000 | |||||||
Operating Segment | Securities | ||||||||||
Income Statement [Abstract] | ||||||||||
Interest income | 6,189,000 | 15,515,000 | 27,228,000 | 43,844,000 | ||||||
Interest expense | (4,535,000) | (5,632,000) | (19,090,000) | (12,250,000) | ||||||
Net interest income (expense) | 1,654,000 | 9,883,000 | 8,138,000 | 31,594,000 | ||||||
(Provision) benefit for loan losses | 0 | 0 | 3,000 | 0 | ||||||
Net interest income (expense) after provision for/(release of) loan losses | 1,654,000 | 9,883,000 | 8,141,000 | 31,594,000 | ||||||
Operating lease income | 0 | 0 | 0 | 0 | ||||||
Sale of loans, net | 0 | 0 | 0 | 0 | ||||||
Realized gain (loss) on securities | (303,000) | 3,396,000 | (12,089,000) | 10,726,000 | ||||||
Unrealized gain (loss) on equity securities | 254,000 | (132,000) | 1,341,000 | |||||||
Unrealized gain (loss) on Agency interest-only securities | 9,000 | 16,000 | 183,000 | 38,000 | ||||||
Realized gain (loss) on sale of real estate, net | 0 | 0 | 0 | 0 | ||||||
Impairment of real estate | 0 | |||||||||
Fee and other income | 0 | 428,000 | 403,000 | 1,165,000 | ||||||
Net result from derivative transactions | 95,000 | (2,908,000) | (4,214,000) | (15,683,000) | ||||||
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) | (199,000) | 1,186,000 | (15,849,000) | (2,413,000) | ||||||
Salaries and employee benefits | 0 | 0 | 0 | 0 | ||||||
Operating expenses(3) | 0 | 0 | 0 | 0 | ||||||
Real estate operating expenses | 0 | 0 | 0 | 0 | ||||||
Fee expense | (50,000) | (92,000) | (183,000) | (280,000) | ||||||
Depreciation and amortization | 0 | 0 | 0 | 0 | ||||||
Total costs and expenses | (50,000) | (92,000) | (183,000) | (280,000) | ||||||
Income tax (expense) benefit | 0 | 0 | 0 | 0 | ||||||
Net income (loss) | 1,405,000 | 10,977,000 | (7,891,000) | 28,901,000 | ||||||
Total assets | 1,447,625,000 | 1,447,625,000 | 1,721,305,000 | |||||||
Operating Segment | Real Estate | ||||||||||
Income Statement [Abstract] | ||||||||||
Interest income | 1,000 | 7,000 | 11,000 | 21,000 | ||||||
Interest expense | (10,221,000) | (9,646,000) | (30,213,000) | (27,620,000) | ||||||
Net interest income (expense) | (10,220,000) | (9,639,000) | (30,202,000) | (27,599,000) | ||||||
(Provision) benefit for loan losses | 0 | 0 | 0 | 0 | ||||||
Net interest income (expense) after provision for/(release of) loan losses | (10,220,000) | (9,639,000) | (30,202,000) | (27,599,000) | ||||||
Operating lease income | 25,464,000 | 24,405,000 | 75,565,000 | 81,106,000 | ||||||
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 | 0 | |||||||
Unrealized gain (loss) on Agency interest-only securities | 0 | 0 | 0 | 0 | ||||||
Realized gain (loss) on sale of real estate, net | 21,588,000 | 2,082,000 | 32,116,000 | 963,000 | ||||||
Impairment of real estate | (1,350,000) | |||||||||
Fee and other income | 0 | 0 | 25,000 | 7,000 | ||||||
Net result from derivative transactions | 0 | 0 | 0 | 0 | ||||||
Earnings (loss) from investment in unconsolidated joint ventures | 447,000 | 1,094,000 | 1,359,000 | 3,617,000 | ||||||
Gain (loss) on extinguishment/defeasance of debt | 0 | 0 | (1,070,000) | |||||||
Total other income (loss) | 47,499,000 | 27,581,000 | 109,065,000 | 83,273,000 | ||||||
Salaries and employee benefits | 0 | 0 | 0 | 0 | ||||||
Operating expenses(3) | 0 | 0 | 0 | 0 | ||||||
Real estate operating expenses | (8,060,000) | (6,270,000) | (22,041,000) | (17,776,000) | ||||||
Fee expense | 39,000 | (700,000) | (580,000) | (1,155,000) | ||||||
Depreciation and amortization | (9,792,000) | (9,005,000) | (29,568,000) | (29,118,000) | ||||||
Total costs and expenses | (17,813,000) | (15,975,000) | (52,189,000) | (48,049,000) | ||||||
Income tax (expense) benefit | 0 | 0 | 0 | 0 | ||||||
Net income (loss) | 19,466,000 | 1,967,000 | 26,674,000 | 7,625,000 | ||||||
Total assets | 1,039,738,000 | 1,039,738,000 | 1,096,514,000 | |||||||
Corporate/Other | ||||||||||
Income Statement [Abstract] | ||||||||||
Interest income | 82,000 | 307,000 | 1,171,000 | 806,000 | ||||||
Interest expense | (25,323,000) | (24,056,000) | (94,001,000) | (74,102,000) | ||||||
Net interest income (expense) | (25,241,000) | (23,749,000) | (92,830,000) | (73,296,000) | ||||||
(Provision) benefit for loan losses | 0 | 0 | 0 | 0 | ||||||
Net interest income (expense) after provision for/(release of) loan losses | (25,241,000) | (23,749,000) | (92,830,000) | (73,296,000) | ||||||
Operating lease income | 0 | 0 | 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 | 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 | 536,000 | 899,000 | 1,279,000 | 2,780,000 | ||||||
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 | 1,167,000 | 22,244,000 | 0 | |||||||
Total other income (loss) | 1,703,000 | 899,000 | 23,523,000 | 2,780,000 | ||||||
Salaries and employee benefits | (7,858,000) | (14,319,000) | (31,880,000) | (52,800,000) | ||||||
Operating expenses(3) | (3,938,000) | (5,314,000) | (15,957,000) | (16,727,000) | ||||||
Real estate operating expenses | 0 | 0 | 0 | |||||||
Fee expense | 0 | 0 | 0 | 0 | ||||||
Depreciation and amortization | (25,000) | (25,000) | (74,000) | (74,000) | ||||||
Total costs and expenses | (11,821,000) | (19,658,000) | (47,911,000) | (69,601,000) | ||||||
Income tax (expense) benefit | (14,000) | (1,112,000) | 5,078,000 | (478,000) | ||||||
Net income (loss) | (35,373,000) | $ (43,620,000) | (112,140,000) | $ (140,595,000) | ||||||
Total assets | 1,157,377,000 | 1,157,377,000 | 492,472,000 | |||||||
Investment in FHLB stock | 61,600,000 | 61,600,000 | 61,600,000 | |||||||
Deferred tax (liability) | (8,700,000) | (8,700,000) | ||||||||
Deferred tax asset | (2,100,000) | |||||||||
Corporate/Other | Senior Unsecured Notes | ||||||||||
Income Statement [Abstract] | ||||||||||
Senior notes | $ 1,700,000,000 | $ 1,700,000,000 | $ 1,200,000,000 | |||||||
[1] | Includes amounts relating to consolidated variable interest entities. See Note 1 and Note 10. |
Uncategorized Items - ladr-2020
Label | Element | Value |
Restricted Cash and Investments | us-gaap_RestrictedCashAndInvestments | $ 41,897,000 |
Restricted Cash and Investments | us-gaap_RestrictedCashAndInvestments | 38,656,000 |
Restricted Cash and Investments | us-gaap_RestrictedCashAndInvestments | $ 297,575,000 |