Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2023 | Apr. 21, 2023 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2023 | |
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 | 320 Park Avenue, | |
Entity Address, City or Town | New York, | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10022 | |
City Area Code | 212 | |
Local Phone Number | 715-3170 | |
Title of 12(b) Security | Class A common stock, $0.001 par value | |
Trading Symbol | LADR | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Smaller Reporting Company | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0001577670 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Class A Common Stock | ||
Entity Common Stock, Shares Outstanding | 126,948,532 | |
Class B Common Stock | ||
Entity Common Stock, Shares Outstanding | 0 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | |
Assets | |||
Cash and cash equivalents | [1] | $ 626,139 | $ 609,078 |
Restricted cash | [1] | 25,158 | 50,524 |
Mortgage loan receivables held for investment, net, at amortized cost: | |||
Mortgage loans receivable | [1] | 3,794,075 | 3,885,746 |
Allowance for credit losses | [1] | (25,499) | (20,755) |
Mortgage loan receivables held for sale | [1] | 27,197 | 27,391 |
Securities | [1] | 520,008 | 587,519 |
Real estate and related lease intangibles, net | [1] | 693,266 | 700,136 |
Investments in and advances to unconsolidated ventures | [1] | 6,336 | 6,219 |
Derivative instruments | [1] | 1,421 | 2,038 |
Accrued interest receivable | [1] | 25,794 | 24,938 |
Other assets | [1] | 166,631 | 78,339 |
Total assets | [1] | 5,860,526 | 5,951,173 |
Liabilities | |||
Debt obligations, net | [1] | 4,082,428 | 4,245,697 |
Dividends payable | [1] | 30,802 | 32,000 |
Accrued expenses | [1] | 50,937 | 68,227 |
Other liabilities | [1] | 167,805 | 71,688 |
Total liabilities | [1] | 4,331,972 | 4,417,612 |
Commitments and contingencies | [1] | 0 | 0 |
Equity | |||
Additional paid-in capital | [1] | 1,835,957 | 1,826,833 |
Treasury stock, 1,078,946 and 1,525,429 shares, at cost | [1] | (105,738) | (95,600) |
Retained earnings (dividends in excess of earnings) | [1] | (183,755) | (177,005) |
Accumulated other comprehensive income (loss) | [1] | (17,524) | (21,009) |
Total shareholders’ equity | [1] | 1,529,067 | 1,533,346 |
Noncontrolling interests in consolidated ventures | [1] | (513) | 215 |
Total equity | [1] | 1,528,554 | 1,533,561 |
Total liabilities and equity | [1] | 5,860,526 | 5,951,173 |
Class A Common Stock | |||
Equity | |||
Common stock | [1] | $ 127 | $ 127 |
[1]Includes amounts relating to consolidated variable interest entities. Refer to Note 2 and Note 9. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2023 | Dec. 31, 2022 |
Treasury stock (in shares) | 1,078,946 | 1,525,429 |
Class A Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, authorized (in shares) | 600,000,000 | 600,000,000 |
Common stock, issued (in shares) | 128,027,478 | 128,027,478 |
Common stock, outstanding (in shares) | 126,948,532 | 126,502,049 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Net interest income | ||
Interest income | $ 103,796 | $ 56,205 |
Interest expense | 60,749 | 47,035 |
Net interest income (expense) | 43,047 | 9,170 |
Provision for (release of) loan loss reserves, net | 4,736 | 874 |
Net interest income (expense) after provision for (release of) loan losses | 38,311 | 8,296 |
Other income (loss) | ||
Real estate operating income | 23,199 | 26,354 |
Net result from mortgage loan receivables held for sale | (194) | (949) |
Realized gain (loss) on securities | (307) | (96) |
Unrealized gain (loss) on securities | 117 | 17 |
Realized gain (loss) on sale of real estate, net | 0 | 29,154 |
Fee and other income | 1,831 | 7,194 |
Net result from derivative transactions | (2,242) | 3,135 |
Earnings from investment in unconsolidated ventures | 217 | 434 |
Gain on extinguishment of debt | 9,217 | 0 |
Total other income (loss) | 31,838 | 65,243 |
Costs and expenses | ||
Compensation and employee benefits | 22,084 | 29,864 |
Operating expenses | 5,256 | 5,508 |
Real estate operating expenses | 9,849 | 8,992 |
Fee expense | 1,520 | 1,988 |
Depreciation and amortization | 7,529 | 9,342 |
Total costs and expenses | 46,238 | 55,694 |
Income (loss) before taxes | 23,911 | 17,845 |
Income tax expense (benefit) | 1,720 | (1,309) |
Net income (loss) | 22,191 | 19,154 |
Net (income) loss attributable to noncontrolling interests in consolidated ventures | $ 217 | $ (122) |
Earnings per share: | ||
Basic (in dollars per share) | $ 0.18 | $ 0.15 |
Diluted (in dollars per share) | $ 0.18 | $ 0.15 |
Weighted average shares outstanding: | ||
Basic (in shares) | 124,493,132 | 124,305,943 |
Diluted (in shares) | 124,656,102 | 125,478,001 |
Class A Common Stock | ||
Costs and expenses | ||
Net income (loss) attributable to Class A common shareholders | $ 22,408 | $ 19,032 |
Earnings per share: | ||
Basic (in dollars per share) | $ 0.18 | $ 0.15 |
Diluted (in dollars per share) | $ 0.18 | $ 0.15 |
Weighted average shares outstanding: | ||
Basic (in shares) | 124,493,132 | 124,305,943 |
Diluted (in shares) | 124,656,102 | 125,478,001 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Net income (loss) | $ 22,191 | $ 19,154 |
Unrealized gain (loss) on securities, net of tax: | ||
Unrealized gain (loss) on real estate securities, available for sale | 3,173 | (6,737) |
Reclassification adjustment for (gain) loss included in net income (loss) | 312 | 96 |
Total other comprehensive income (loss) | 3,485 | (6,641) |
Comprehensive income (loss) | 25,676 | 12,513 |
Comprehensive (income) loss attributable to noncontrolling interest in consolidated ventures | 217 | (122) |
Class A Common Stock | ||
Unrealized gain (loss) on securities, net of tax: | ||
Comprehensive income (loss) attributable to Class A common shareholders | $ 25,893 | $ 12,391 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) $ in Thousands | Total | Class A Common Stock | Common Stock Class A Common Stock | Additional Paid- in-Capital | Treasury Stock | Retained Earnings (Dividends in Excess of Earnings) | Accumulated Other Comprehensive Income (Loss) | Consolidated Ventures | |
Beginning Balance (in shares) at Dec. 31, 2021 | 125,453,000 | ||||||||
Beginning Balance at Dec. 31, 2021 | $ 1,513,619 | $ 126 | $ 1,795,249 | $ (76,324) | $ (207,802) | $ (4,112) | $ 6,482 | ||
Increase Decrease in Stockholders' Equity | |||||||||
Distributions | (140) | (140) | |||||||
Amortization of equity based compensation | 20,412 | 20,412 | |||||||
Grants of restricted stock (in shares) | 2,248,000 | ||||||||
Grants of restricted stock | (1) | $ 2 | (3) | ||||||
Purchase of treasury stock (in shares) | (55,000) | ||||||||
Purchase of treasury stock | (611) | (611) | |||||||
Re-issuance of treasury stock (in shares) | 596,000 | ||||||||
Shares acquired to satisfy minimum required federal and state tax withholding on vesting restricted stock and units (in shares) | (952,000) | ||||||||
Shares acquired to satisfy minimum required federal and state tax withholding on vesting restricted stock and units | (11,321) | $ (1) | (11,320) | ||||||
Forfeitures (in shares) | (66,000) | ||||||||
Dividends declared | (25,314) | (25,314) | |||||||
Net income (loss) | 19,154 | 19,032 | 122 | ||||||
Other comprehensive income (loss) | (6,641) | (6,641) | |||||||
Ending Balance (in shares) at Mar. 31, 2022 | 127,224,000 | ||||||||
Ending Balance at Mar. 31, 2022 | 1,509,157 | $ 127 | 1,815,661 | (88,258) | (214,084) | (10,753) | 6,464 | ||
Beginning Balance (in shares) at Dec. 31, 2022 | 126,502,049 | 126,502,000 | |||||||
Beginning Balance at Dec. 31, 2022 | 1,533,561 | [1] | $ 127 | 1,826,833 | (95,600) | (177,005) | (21,009) | 215 | |
Increase Decrease in Stockholders' Equity | |||||||||
Distributions | (511) | (511) | |||||||
Amortization of equity based compensation | 9,124 | 9,124 | |||||||
Grants of restricted stock (in shares) | 971,000 | ||||||||
Grants of restricted stock | 0 | $ 1 | (1) | ||||||
Purchase of treasury stock (in shares) | (250,000) | ||||||||
Purchase of treasury stock | (2,285) | (2,285) | |||||||
Re-issuance of treasury stock (in shares) | 446,000 | ||||||||
Re-issuance of treasury stock | 0 | 0 | |||||||
Shares acquired to satisfy minimum required federal and state tax withholding on vesting restricted stock and units (in shares) | (689,000) | ||||||||
Shares acquired to satisfy minimum required federal and state tax withholding on vesting restricted stock and units | (7,853) | $ (1) | (7,852) | ||||||
Forfeitures (in shares) | (32,000) | ||||||||
Dividends declared | (29,158) | (29,158) | |||||||
Net income (loss) | 22,191 | 22,408 | (217) | ||||||
Other comprehensive income (loss) | 3,485 | 3,485 | |||||||
Ending Balance (in shares) at Mar. 31, 2023 | 126,948,532 | 126,948,000 | |||||||
Ending Balance at Mar. 31, 2023 | $ 1,528,554 | [1] | $ 127 | $ 1,835,957 | $ (105,738) | $ (183,755) | $ (17,524) | $ (513) | |
[1]Includes amounts relating to consolidated variable interest entities. Refer to Note 2 and Note 9. |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 USD ($) | Mar. 31, 2022 USD ($) | ||
Cash flows from operating activities: | |||
Net income (loss) | $ 22,191 | $ 19,154 | |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||
(Gain) loss on extinguishment of debt | (9,217) | 0 | |
Depreciation and amortization | 7,529 | 9,342 | |
Non-cash operating lease expense | 538 | 0 | |
Unrealized (gain) loss on derivative instruments | 373 | 162 | |
Unrealized (gain) loss on equity securities | 6 | (14) | |
Unrealized (gain) loss on Agency interest-only securities | (123) | (3) | |
Provision for (release of) loan loss reserves | 4,736 | 874 | |
Amortization of equity based compensation | 9,124 | 20,412 | |
Amortization of deferred financing costs included in interest expense | 3,580 | 5,857 | |
Amortization of premium/discount on mortgage loan financing included in interest expense | (150) | (330) | |
Amortization of above- and below-market lease intangibles | (454) | (444) | |
(Accretion)/amortization of discount, premium and other fees on loans | (6,985) | (5,162) | |
(Accretion)/amortization of discount, premium and other fees on securities | (501) | (37) | |
Net result from mortgage loan receivables held for sale | 194 | 949 | |
Realized (gain) loss on securities | 307 | 96 | |
Realized (gain) loss on sale of real estate, net | 0 | (29,154) | |
Realized gain on sale of derivative instruments | 244 | 0 | |
(Earnings) loss from investments in unconsolidated ventures in excess of distributions received | (117) | 191 | |
Insurance proceeds for remediation work due to property damage | 473 | 0 | |
Insurance proceeds used for remediation work due to property damage | 0 | (36) | |
Origination of mortgage loan receivables held for sale | 0 | (54,850) | |
Change in deferred tax asset (liability) | 827 | (402) | |
Changes in operating assets and liabilities: | |||
Accrued interest receivable | (856) | (805) | |
Other assets | 1,902 | 2,332 | |
Accrued expenses and other liabilities | 77,789 | 1,833 | |
Net cash provided by (used in) operating activities | 111,410 | (30,035) | |
Cash flows from investing activities: | |||
Origination of mortgage loan receivables held for investment | (32,616) | (648,507) | |
Repayment of mortgage loan receivables held for investment | 150,186 | 358,198 | |
Purchases of securities | (3,513) | (26,033) | |
Repayment of securities | 60,214 | 57,756 | |
Basis recovery of interest-only securities | 1,024 | 1,383 | |
Proceeds from sales of securities | 13,595 | 4,261 | |
Capital improvements of real estate | (626) | (751) | |
Proceeds from sale of real estate | 0 | 79,473 | |
Capital distribution from investment in unconsolidated ventures | 0 | 2,284 | |
Net cash provided by (used in) investing activities | 188,264 | (171,936) | |
Cash flows from financing activities: | |||
Deferred financing costs paid | (817) | (1,510) | |
Proceeds from borrowings under debt obligations | 601,338 | 443,866 | |
Repayment and repurchase of borrowings under debt obligations | (757,779) | (328,495) | |
Cash dividends paid to Class A common shareholders | (30,356) | (26,142) | |
Reissuance of treasury stock | 0 | (1) | |
Payment of liability assumed in exchange for shares for the minimum withholding taxes on vesting restricted stock | (7,852) | (11,321) | |
Purchase of treasury stock | (2,285) | (611) | |
Issuance of common stock | 0 | 3 | |
Net cash provided by (used in) financing activities | (198,262) | 75,649 | |
Net increase (decrease) in cash, cash equivalents and restricted cash | 101,412 | (126,322) | |
Cash, cash equivalents and restricted cash at beginning of period | 659,602 | 621,546 | |
Cash, cash equivalents and restricted cash at end of period | 761,014 | 495,224 | |
Non-cash investing and financing activities: | |||
Securities and derivatives purchased, not settled | 0 | 3,776 | |
Securities and derivatives sold, not settled | 12 | 54 | |
Repayment in transit of mortgage loans receivable held for investment (other assets) | 0 | 18,373 | |
Real estate acquired in former unconsolidated venture agreement | 0 | 15,436 | |
Transfer of real estate, net into real estate held for sale | 0 | (55,412) | |
Dividends declared, not paid | 30,802 | 26,763 | |
Cash and cash equivalents | 626,139 | [1] | 431,762 |
Restricted cash | 25,158 | 63,462 | |
Short-term unsettled U.S. treasury securities classified in other assets on the consolidated balance sheet | 109,717 | 0 | |
Total cash, cash equivalents and restricted cash shown in the consolidated statement of cash flows | 761,014 | 495,224 | |
Consolidated Joint Venture | |||
Cash flows from financing activities: | |||
Capital distributed to noncontrolling interests in consolidated ventures | $ (511) | $ (140) | |
[1]Includes amounts relating to consolidated variable interest entities. Refer to Note 2 and Note 9. |
ORGANIZATION AND OPERATIONS
ORGANIZATION AND OPERATIONS | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND OPERATIONS | 1. ORGANIZATION AND OPERATIONS Ladder Capital Corp (“Ladder,” “Ladder Capital,” and the “Company”) is an internally-managed real estate investment trust (“REIT”) that is a leader in commercial real estate finance. The Company originates and invests in a diverse portfolio of commercial real estate and real estate-related assets, focusing on senior secured assets. The Company’s investment activities include: (i) the Company’s primary business of originating senior first mortgage fixed and floating rate loans collateralized by commercial real estate with flexible loan structures; (ii) owning and operating commercial real estate, including net leased commercial properties; and (iii) investing in investment grade securities secured by first mortgage loans on commercial real estate. Ladder Capital Corp, as the general partner of Ladder Capital Finance Holdings LLLP (“LCFH” or the “Operating Partnership”), operates the Ladder Capital business through LCFH and its subsidiaries. As of March 31, 2023, Ladder Capital Corp has a 100% 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 initial public offering (“IPO”) which closed on February 11, 2014. The Company used the net proceeds from the IPO to purchase newly-issued limited partnership units (“LP Units”) from 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.” |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | 2. SIGNIFICANT ACCOUNTING POLICIES Basis of Accounting and Principles of Consolidation The accompanying consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). In the opinion of management, the unaudited financial information for the interim periods presented in this report reflects all normal and recurring adjustments necessary for a fair statement of results of operations, financial position and cash flows. The interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2022, 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 that 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. Refer to Note 9, Consolidated Variable Interest Entities, for further information on the Company’s consolidated variable interest entities. Investments in advances to unconsolidated ventures represents the Company’s investment in Grace Lake LLC, a VIE. The Company determined that it was not the primary beneficiary of this VIE because 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 unconsolidated VIE that it was not previously contractually required to provide. Provision for Loan Losses The Company uses a current expected credit loss model (“CECL”) for estimating the provision for loan losses on its loan portfolio. The CECL model requires the consideration of possible credit losses over the life of an instrument and includes a portfolio-based component and an asset-specific component. In compliance with the CECL reporting requirements, the Company supplemented its existing credit monitoring and management processes with additional processes to support the calculation of the CECL reserves. As part of that effort, the Company engages 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 the Company’s loan-level data, fair value of collateral, net operating income of collateral, selected forward-looking macroeconomic variables, and pool-level mean loss rates, produces life of loan expected losses (“EL”) at the loan and portfolio level. Where management has determined that the credit loss model does not fully capture certain external factors, including portfolio trends or loan-specific factors, a qualitative adjustment to the reserve, is recorded. In addition, interest receivable on loans is not included in the Company’s CECL calculations as the Company performs timely write off of aged accounts receivable. The Company has made a policy election to write off aged receivables through interest income as opposed to through the CECL provision on its statements of income. 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 may use the direct capitalization rate valuation methodology, the discounted cash flow 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 and take into account potential sale bids. 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. When a debtor is experiencing financial difficulties and a loan is modified, the effect of the modification will be included in the Company’s assessment of the CECL allowance for loan losses. If the Company provides principal forgiveness, the amortized cost basis of the loan is written off against the allowance for loan losses. Generally, when modifying loans, 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 the effects of modifications granted should conditions impacting the loan improve. The Company designates a loan as a non-accrual loan generally when: (i) the principal or coupon interest components of loan payments become 90-days past due; or (ii) in the opinion of the Company, it is doubtful the Company will be able to collect all principal and coupon interest due according to the contractual terms of the loan. Interest income on non-accrual loans in which the Company reasonably expects a full recovery of the loan’s outstanding principal balance is recognized when received in cash. Otherwise, income recognition will be suspended and any cash received will be applied as a reduction to the amortized cost basis. A non-accrual loan is returned to accrual status at such time as the loan becomes contractually current and future principal and coupon interest are reasonably assured to be received in accordance with the contractual loan terms. A loan will be written off when management has determined principal and coupon interest is no longer realizable and deemed non-recoverable. Recently Adopted Accounting Pronouncements In March 2022, the FASB issued ASU 2022-02 Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures, (“ASU 2022-02”). ASU 2022-02 eliminated the recognition and measurement guidance for troubled debt restructuring for creditors that have adopted ASC 326 and requires them to make enhanced disclosures about loan modifications for borrowers experiencing financial difficulty. The standard is effective for fiscal years beginning after December 15, 2022. The adoption of ASU 2022-02 did not have a material impact on the Company’s consolidated financial statements. Recent Accounting Pronouncements Pending Adoption Any new accounting standards 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 | 3 Months Ended |
Mar. 31, 2023 | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Abstract] | |
MORTGAGE LOAN RECEIVABLES | 3. MORTGAGE LOAN RECEIVABLES March 31, 2023 ($ in thousands) Outstanding Carrying Weighted Remaining Mortgage loan receivables held for investment, net, at amortized cost: First mortgage loans $ 3,766,258 $ 3,750,799 9.16 % 1.1 Mezzanine loans 43,334 43,276 11.11 % 1.5 Total mortgage loans receivable 3,809,592 3,794,075 9.18 % 1.1 Allowance for credit losses N/A (25,499) Total mortgage loan receivables held for investment, net, at amortized cost 3,809,592 3,768,576 Mortgage loan receivables held for sale: First mortgage loans 31,350 27,197 4.57 % 8.9 Total $ 3,840,942 $ 3,795,773 (4) 9.14 % 1.1 (1) Includes the impact from interest rate floors. March 31, 2023 LIBOR and SOFR rates are used to calculate weighted average yield for floating rate loans. (2) Excludes non-accrual loans of $53.6 million. Refer to “Non-Accrual Status” below for further details. (3) The remaining maturity is calculated based on the initial maturity. The weighted average extended maturity for all loans is 2.4 years. (4) Net of $15.5 million of deferred origination fees and other items as of March 31, 2023. As of March 31, 2023, $3.3 billion, or 87.2%, of the outstanding face amount of our mortgage loan receivables held for investment, net, at amortized cost, were at variable interest rates with $2.3 billion linked to LIBOR and $1.0 billion linked to SOFR. Of this $3.3 billion, 100% of these variable interest rate mortgage loan receivables were subject to interest rate floors. As of March 31, 2023, $31.4 million, or 100%, of the outstanding face amount of our mortgage loan receivables held for sale were at fixed interest rates. In February 2023, the Company modified a first mortgage loan with an amortized cost basis of $51.5 million. The modification included an extension of the contractual maturity to October 2026, a modification of the interest rate from LIBOR + 2.8% to a fixed rate of 7% (5% current pay, 2% deferred rate) as well as a principal paydown of $3.5 million and the funding of $6.5 million of reserves. As of March 31, 2023 the Company is not accruing the 2% deferred interest component. As of March 31, 2023 the loan is current and has an amortized cost basis of $48.0 million. December 31, 2022 ($ in thousands) Outstanding Carrying Weighted Remaining Mortgage loan receivables held for investment, net, at amortized cost: First mortgage loans $ 3,841,315 $ 3,819,860 8.83 % 1.3 Mezzanine loans 65,950 65,886 10.62 % 1.6 Total mortgage loans receivable 3,907,265 3,885,746 8.85 % 1.3 Allowance for credit losses N/A (20,755) Total mortgage loan receivables held for investment, net, at amortized cost 3,907,265 3,864,991 Mortgage loan receivables held for sale: First mortgage loans 31,350 27,391 4.57 % 9.2 Total $ 3,938,615 $ 3,892,382 (4) 8.82 % 1.3 (1) Includes the impact from interest rate floors. December 31, 2022 LIBOR rates are used to calculate weighted average yield for floating rate loans. (2) Excludes non-accrual loans of $53.8 million. (3) Includes the impact of one loan with a principal balance of $51.5 million, which was extended through 2026 in January 2023. (4) Net of $21.5 million of deferred origination fees and other items as of December 31, 2022. As of December 31, 2022, $3.4 billion, or 87.2%, of the outstanding face amount of our mortgage loan receivables held for investment, net, at amortized cost, were at variable interest rates with $2.3 billion linked to LIBOR and $1.1 billion linked to SOFR. Of this $3.4 billion, 99% of these variable rate mortgage loan receivables were subject to interest rate floors. As of December 31, 2022, $31.4 million, or 100%, of the outstanding face amount of our mortgage loan receivables held for sale were at fixed interest rates. For the three months ended March 31, 2023 and 2022, the activity in our loan portfolio was as follows ($ in thousands): Mortgage loan receivables held for investment, net, at amortized cost: Mortgage loans receivable Allowance for credit losses Mortgage loan Balance, December 31, 2022 $ 3,885,746 $ (20,755) $ 27,391 Origination of mortgage loan receivables 32,616 — — Repayment of mortgage loan receivables (131,272) — — Net result from mortgage loan receivables held for sale (1) — — (194) Accretion/amortization of discount, premium and other fees 6,985 — — Release (addition) of provision for current expected credit loss, net (2) — (4,744) — Balance, March 31, 2023 $ 3,794,075 $ (25,499) $ 27,197 (1) Includes unrealized lower of cost or market adjustment and realized gain/loss on loans held for sale. (2) Refer to “Allowance for Credit Losses” table below for further detail. Mortgage loan receivables held for investment, net, at amortized cost: Mortgage loans receivable Allowance for credit losses Mortgage loan Balance, December 31, 2021 $ 3,553,737 $ (31,752) $ — Origination of mortgage loan receivables 648,507 — 54,850 Repayment of mortgage loan receivables (349,935) — — Net result from mortgage loan receivables held for sale (2) — — (949) Accretion/amortization of discount, premium and other fees 5,162 — — Release (addition) of provision for current expected credit loss, net (3) — (580) — Balance, March 31, 2022 $ 3,857,471 $ (32,332) $ 53,901 (1) Refer to Note 5 Real Estate and Related Lease Intangibles, Net for further detail on additions to real estate. (2) Represents unrealized lower of cost or market adjustment on loans held for sale. (3) Refer to “Allowance for Credit Losses” table below for further detail. Allowance for Credit Losses and Non-Accrual Status ($ in thousands) Three Months Ended March 31, Allowance for Credit Losses 2023 2022 Allowance for credit losses at beginning of period $ 20,755 $ 31,752 Provision for (release of) current expected credit loss, net (1) 4,744 580 Allowance for credit losses at end of period $ 25,499 $ 32,332 (1) There were no asset specific reserves recorded for the three months ended March 31, 2023 or 2022. Non-Accrual Status March 31, 2023 December 31, 2022 Carrying value of loans on non-accrual status, net of asset-specific reserve (1)(2) $ 53,624 $ 53,809 (1) Includes one loan with an amortized cost basis of $30.5 million, for which the Company determined no asset specific reserve was necessary. (2) As of March 31, 2023 and December 31, 2022 the loans on non-accrual status were greater than 90 days past due. Current Expected Credit Loss (“CECL”) As of March 31, 2023, the Company has a $26.2 million allowance for current expected credit losses, of which $25.5 million pertains to mortgage loan receivables and $0.7 million relates to unfunded commitments. This allowance includes $2.7 million of asset-specific reserves relating to two loans with an amortized cost basis of $25.8 million as of March 31, 2023. The Company concluded that none of its other loans are individually impaired as of March 31, 2023. As of December 31, 2022, the Company had a $21.5 million allowance for current expected credit losses, of which $20.8 million pertained to mortgage loan receivables and $0.7 million related to unfunded commitments. This allowance included $2.7 million of asset-specific reserves relating to two loans with an amortized cost basis of $26.0 million as of December 31, 2022. The Company concluded that none of its other loans are individually impaired as of December 31, 2022. The total change in provision for loan loss reserves for the three months ended March 31, 2023 was an increase of the provision of $4.7 million. The net increase represents an increase in the general reserve of loans held for investment of $4.7 million and a decrease related to unfunded loan commitments of $8.0 thousand. The increase in provision associated with the general reserve during the three months ended March 31, 2023 is primarily due to adverse changes in macroeconomic scenarios. The total change in provision for loan loss reserves for the three months ended March 31, 2022 was an increase of $0.9 million. The addition represented an increase in the general reserve of loans held for investment of $0.6 million and an increase on unfunded loan commitments of $0.3 million. The increase during the three months ended March 31, 2022 was primarily due to a net increase in originations quarter over quarter. Loan Portfolio by Geographic Region, Collateral Type and Vintage (amortized cost $ in thousands) March 31, December 31, Geographic Region 2023 2022 Northeast $ 1,163,181 $ 1,191,337 South 1,101,731 1,080,132 Southwest 650,167 675,069 Midwest 488,728 496,640 West 364,441 416,556 Subtotal mortgage loans receivable 3,768,248 3,859,734 Individually impaired loans 25,827 26,012 Total mortgage loans receivable $ 3,794,075 $ 3,885,746 Management’s method for monitoring credit is the performance of a loan. The primary credit quality indicator management utilizes to assess its current expected credit loss reserve is by viewing the Company’s mortgage loan portfolio by collateral type. The following tables summarize the amortized cost of the mortgage loan portfolio by collateral type as of March 31, 2023 and December 31, 2022, respectively ($ in thousands): Amortized Cost Basis by Origination Year as of March 31, 2023 Collateral Type 2023 2022 2021 2020 2019 and Earlier Total Multifamily $ 14,339 $ 677,833 $ 730,370 $ — $ — $ 1,422,542 Office — 78,871 672,894 — 168,387 920,152 Mixed Use — 202,526 356,226 26,500 92,005 677,257 Industrial — 37,690 96,952 — 115,275 249,917 Retail — 60,250 107,783 — 22,098 190,131 Hospitality — — 45,485 — 92,221 137,706 Manufactured Housing — 32,559 82,724 — 2,924 118,207 Other — 32,457 19,879 — — 52,336 Self-Storage — — — — — — Subtotal mortgage loans receivable 14,339 1,122,186 2,112,313 26,500 492,910 3,768,248 Individually Impaired loans — — — — 25,827 25,827 Total mortgage loans receivable (1) $ 14,339 $ 1,122,186 $ 2,112,313 $ 26,500 $ 518,737 $ 3,794,075 Amortized Cost Basis by Origination Year as of December 31, 2022 Collateral Type 2022 2021 2020 2019 2018 and Earlier Total Multifamily $ 702,125 $ 722,862 $ — $ — $ — $ 1,424,987 Office 78,754 676,431 29,650 58,684 136,512 980,031 Mixed Use 201,777 351,291 26,500 120,300 — 699,868 Industrial 37,616 96,486 — 115,545 — 249,647 Retail 60,089 107,305 — 12,953 9,126 189,473 Hospitality — 45,416 — 13,843 78,364 137,623 Manufactured Housing 32,515 82,618 — 2,921 — 118,054 Other 32,353 19,898 — 7,800 — 60,051 Self-Storage — — — — — — Subtotal mortgage loans receivable 1,145,229 2,102,307 56,150 332,046 224,002 3,859,734 Individually Impaired loans — — — — 26,012 26,012 Total mortgage loans receivable (2) $ 1,145,229 $ 2,102,307 $ 56,150 $ 332,046 $ 250,014 $ 3,885,746 (1) Not included above is $23.9 million of accrued interest receivable (2) Not included above is $23.2 million of accrued interest receivable on all loans at December 31, 2022. |
SECURITIES
SECURITIES | 3 Months Ended |
Mar. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
SECURITIES | 4. SECURITIES The Company invests in primarily AAA-rated real estate securities, typically front pay securities, with relatively short duration and significant credit subordination. We continue to actively monitor the impacts of current market conditions on our securities portfolio. Commercial mortgage-backed securities (“CMBS”), CMBS interest-only securities, U.S. Agency securities, corporate bonds and U.S. Treasury securities are classified as available-for-sale and reported at fair value with changes in fair value recorded in the current period in other comprehensive income. As of March 31, 2023, the Company does not intend to sell these investments and it is not more likely than not that the Company will be required to sell the investments before recovery of their amortized cost bases. Government National Mortgage Association (“GNMA”), Federal Home Loan Mortgage Corp (“FHLMC”) and equity securities are recorded at fair value with changes in fair value recorded in current period earnings. The following is a summary of the Company’s securities at March 31, 2023 and December 31, 2022 ($ in thousands): March 31, 2023 Gross Unrealized Weighted Average Asset Type Outstanding Amortized Cost Basis Gains Losses (7) Carrying # of Rating (1) Coupon % Yield % Remaining CMBS $ 503,183 $ 502,710 $ 43 $ (17,563) $ 485,190 (2) 70 AAA 5.72 % 5.76 % 1.01 CMBS interest-only(3) 898,620 (3) 9,493 177 (134) 9,536 (4) 9 AAA 0.59 % 3.82 % 1.37 GNMA interest-only(5) 44,966 (3) 265 139 (19) 385 14 AAA 0.31 % 5.95 % 3.09 Agency securities 32 33 — (1) 32 1 AAA 4.00 % 2.70 % 1.42 U.S. Treasury securities 25,000 24,811 2 (41) 24,772 6 AAA N/A 4.10 % 0.29 Total debt securities 1,471,801 537,312 361 (17,758) 519,915 (6) 100 2.37 % 5.72 % 1.02 Equity securities N/A 160 — (47) 113 1 N/A N/A N/A N/A Allowance for current expected credit losses N/A — — (20) (20) Total securities $ 1,471,801 $ 537,472 $ 361 $ (17,825) $ 520,008 101 December 31, 2022 Gross Unrealized Weighted Average Asset Type Outstanding Amortized Gains Losses (7) Carrying # of Rating (1) Coupon % Yield % Remaining CMBS $ 562,839 $ 562,246 $ — $ (20,913) $ 541,333 (2) 71 AAA 5.22 % 5.32 % 1.06 CMBS interest-only(3) 1,026,195 (3) 10,498 121 (176) 10,443 (4) 10 AAA 0.41 % 3.65 % 1.45 GNMA interest-only(5) 45,369 (3) 285 17 (21) 281 14 AAA 0.31 % 4.23 % 3.30 Agency securities 36 36 — (1) 35 1 AAA 4.00 % 2.70 % 1.54 U.S. Treasury securities 36,000 35,374 6 (52) 35,328 10 AAA N/A 4.17 % 0.60 Total debt securities $ 1,670,439 $ 608,439 $ 144 $ (21,163) $ 587,420 (6) 106 2.06 % 5.29 % 1.07 Equity securities N/A 160 — (41) 119 1 N/A N/A N/A N/A Allowance for current expected credit losses N/A — — (20) (20) Total real estate securities $ 1,670,439 $ 608,599 $ 144 $ (21,224) $ 587,519 107 (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. The ratings provided were determined by third-party rating agencies. The rates may not be current and are subject to change (including the assignment of a “negative outlook” or “credit watch”) at any time. (2) As of March 31, 2023 and December 31, 2022, includes $9.0 million of restricted securities which are designated as risk retention securities under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, as amended (“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. (3) The amounts presented represent the principal amount of the mortgage loans outstanding in the pool in which the interest-only securities participate. (4) As of March 31, 2023 and December 31, 2022, includes $0.4 million of restricted securities which are designated as risk retention securities under the Dodd-Frank Act and are therefore subject to transfer restrictions over the term of the securitization trust and are classified as held-to-maturity and reported at amortized cost. (5) GNMA interest-only securities are recorded at fair value with changes in fair value recorded in current period earnings. The Company’s GNMA interest-only securities are considered to be hybrid financial instruments that contain embedded derivatives. As a result, the Company has elected to account for them as hybrid instruments in their entirety at fair value with changes in fair value recognized in unrealized gain (loss) on securities in the consolidated statements of income. (6) The Company’s investments in debt securities represents an ownership interest in unconsolidated VIEs. The Company’s maximum exposure to loss from these unconsolidated VIEs is the amortized cost basis of the securities which represents the purchase price of the investment adjusted by any unamortized premiums or discounts as of the reporting date. (7) Based on the Company’s analysis, including review of interest rate changes and current levels of subordination, among other factors, the unrealized loss positions are determined to be due to market factors other than credit. The following summarizes the carrying value of the Company’s debt securities by remaining maturity based upon expected cash flows at March 31, 2023 and December 31, 2022 ($ in thousands): March 31, 2023 Asset Type Within 1 year 1-5 years 5-10 years After 10 years Total CMBS $ 304,060 $ 181,131 $ — $ — $ 485,191 CMBS interest-only 2,365 7,172 — — 9,537 GNMA interest-only 36 210 138 — 384 Agency securities — 31 — — 31 U.S. Treasury securities 24,772 — — — 24,772 Allowance for current expected credit losses — — — — (20) Total securities (1) $ 331,233 $ 188,544 $ 138 $ — $ 519,895 (1) Excluded from the table above are $0.1 million of equity securities. December 31, 2022 Asset Type Within 1 year 1-5 years 5-10 years After 10 years Total CMBS $ 346,272 $ 195,061 $ — $ — $ 541,333 CMBS interest-only 937 9,506 — — 10,443 GNMA interest-only 40 111 130 — 281 Agency securities — 35 — — 35 U.S. Treasury securities 32,451 2,877 — — 35,328 Allowance for current expected credit losses — — — — (20) Total securities (1) $ 379,700 $ 207,590 $ 130 $ — $ 587,400 (1) Excluded from the table above are $0.1 million of equity securities. |
REAL ESTATE AND RELATED LEASE I
REAL ESTATE AND RELATED LEASE INTANGIBLES, NET | 3 Months Ended |
Mar. 31, 2023 | |
Real Estate [Abstract] | |
REAL ESTATE AND RELATED LEASE INTANGIBLES, NET | 5. REAL ESTATE AND RELATED LEASE INTANGIBLES, NET The Company’s real estate assets were comprised of the following ($ in thousands): March 31, 2023 December 31, 2022 Land $ 158,802 $ 158,802 Building 626,280 625,655 In-place leases and other intangibles 114,689 114,687 Undepreciated real estate and related lease intangibles 899,771 899,144 Less: Accumulated depreciation and amortization (206,505) (199,008) Real estate and related lease intangibles, net(2) $ 693,266 $ 700,136 Below market lease intangibles, net (other liabilities)(1) $ (30,369) $ (30,892) (1) Below market lease intangibles is net of $14.2 million and $13.6 million of accumulated amortization as of March 31, 2023 and December 31, 2022, respectively. (2) There was unencumbered real estate of $170.2 million and $140.3 million as of March 31, 2023 and December 31, 2022, respectively. At March 31, 2023 and December 31, 2022, the Company held foreclosed properties included in real estate and related lease intangibles, net with carrying values of $101.6 million and $103.1 million, respectively. The following table presents depreciation and amortization expense on real estate recorded by the Company ($ in thousands): Three Months Ended March 31, 2023 2022 Depreciation expense(1) $ 6,200 $ 7,088 Amortization expense 1,329 2,254 Total real estate depreciation and amortization expense $ 7,529 $ 9,342 (1) Depreciation expense on the consolidated statements of income also includes $0.1 million and $8 thousand of depreciation on corporate fixed assets for the three months ended March 31, 2023 and March 31, 2022, respectively. The Company’s intangible assets are comprised of in-place leases, above market leases and other intangibles. The following tables present additional detail related to our intangible assets ($ in thousands): March 31, 2023 December 31, 2022 Gross intangible assets(1) $ 114,689 $ 114,687 Accumulated amortization 51,125 49,725 Net intangible assets $ 63,564 $ 64,962 (1) Includes $2.8 million of unamortized above market lease intangibles, which are included in real estate and related lease intangibles, net on the consolidated balance sheets as of March 31, 2023 and December 31, 2022. The following table presents increases/reductions in operating lease income related to the amortization of above or below market leases recorded by the Company ($ in thousands): Three Months Ended March 31, 2023 2022 Reduction in operating lease income for amortization of above market lease intangibles acquired $ (72) $ (76) Increase in operating lease income for amortization of below market lease intangibles acquired 526 520 Total $ 454 $ 444 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 March 31, 2023 ($ in thousands): Period Ending December 31, Increase/(Decrease) to Operating Lease Income Amortization Expense 2023 $ 730 $ 3,398 2024 973 4,531 2025 973 4,391 2026 976 3,740 2027 976 3,554 Thereafter 22,968 41,179 Total $ 27,596 $ 60,793 Rent Receivables There were $0.8 million and $1.3 million of rent receivables included in other assets on the consolidated balance sheets as of March 31, 2023 and December 31, 2022, respectively. Operating Lease Income & Tenant Reimbursements The following is a schedule of non-cancellable, contractual, future minimum rent under leases (excluding property operating expenses paid directly by tenant under net leases) at March 31, 2023 ($ in thousands): Period Ending December 31, Amount 2023 $ 40,682 2024 49,994 2025 49,801 2026 48,424 2027 46,267 Thereafter 196,855 Total $ 432,023 Tenant reimbursements, which consist of real estate taxes and other municipal charges paid by the Company, which were reimbursable by our tenants pursuant to the terms of the lease agreements, were $1.1 million and $1.6 million for the three months ended March 31, 2023 and 2022, respectively. Tenant reimbursements are included in operating lease income on the Company’s consolidated statements of income. Acquisitions The Company did not have any acquisitions during the three months ended March 31, 2023 and acquired the following properties during the three months ended March 31, 2022 ($ in thousands): Acquisition Date Type Primary Location(s) Purchase Price/Fair Value on the Date of Foreclosure Ownership Interest (1) February 2022 (2) Apartments New York, NY $ 15,436 100.0% Total real estate acquisitions $ 15,436 (1) Properties were consolidated as of acquisition date. (2) In February 2022, the Company acquired, via change in control, a previously held interest in a non-controlling equity investment in a mixed use property with one remaining residential condo unit and one remaining retail condo unit in New York, New York. The carrying value of the property at the time of change in control was $15.4 million, which was determined to be fair value. The fair value of the remaining condo unit was determined based on comparable sales in the building and the value of the remaining retail unit was valued utilizing a direct capitalization rate of 5.5%. The key inputs used to determine fair value were determined to be Level 3 inputs. The Company allocates purchase consideration based on relative fair values, and real estate acquisition costs are capitalized as a component of the cost of the assets acquired for asset acquisitions. During the three months ended March 31, 2022, all acquisitions were determined to be asset acquisitions. Sales The Company did not have any sales during the three months ended March 31, 2023 and sold the following properties during the three months ended March 31, 2022 ($ in thousands): Sales Date Type Primary Location(s) Net Sales Proceeds Net Book Value Realized Gain/(Loss) Properties March 2022 Office Ewing, NJ $ 38,652 $ 24,134 $ 14,518 1 March 2022 Warehouse Conyers, GA 40,752 26,116 14,636 1 Totals (1) $ 79,404 $ 50,250 $ 29,154 (1) Includes $3.7 million of defeasance costs upon repayment of the mortgage financing in connection with the sales that is recorded within interest expense on the consolidated statement of income, such amount was correspondingly paid by the buyer and received by the Company as part of the sale and recorded in fee and other income on the consolidated statement of income. |
DEBT OBLIGATIONS, NET
DEBT OBLIGATIONS, NET | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
DEBT OBLIGATIONS, NET | 6. DEBT OBLIGATIONS, NET The details of the Company’s debt obligations at March 31, 2023 and December 31, 2022 are as follows ($ in thousands): March 31, 2023 Debt Obligations Committed / Carrying Value of Debt Obligations Committed but Unfunded Interest Rate at March 31, 2023(1) Current Term Maturity Remaining Extension Options Eligible Collateral Carrying Amount of Collateral Fair Value of Collateral Committed Loan Repurchase Facility $ 500,000 $ 318,983 $ 181,017 6.54% — 7.04% 9/27/2025 (2) (3) $ 431,809 $ 431,395 Committed Loan Repurchase Facility 300,000 206,867 93,133 6.54% — 7.85% 12/19/2023 (4) (5) 306,449 303,632 Committed Loan Repurchase Facility 100,000 47,415 52,585 6.55% — 6.55% 4/30/2024 (6) (3) 64,263 64,263 Committed Loan Repurchase Facility 100,000 77,959 22,041 6.06% — 6.56% 1/2/2024 (7) (3) 103,560 103,560 Committed Loan Repurchase Facility 100,000 — 100,000 —% —% 1/22/2024 (8) (5) — — Committed Loan Repurchase Facility 100,000 — 100,000 —% — —% 7/14/2023 (9) (10) — — Total Committed Loan Repurchase Facilities 1,200,000 651,224 548,776 906,081 902,850 Committed Securities Repurchase Facility 100,000 8,032 91,968 5.46% — 5.71% 5/27/2024 N/A (11) 9,150 9,150 Uncommitted Securities Repurchase Facility N/A (12) 110,011 N/A (12) 5.32% — 6.68% 4/27/2023 N/A (11) 121,387 121,387 (13) Total Repurchase Facilities 1,300,000 769,267 640,744 1,036,618 1,033,387 Revolving Credit Facility 323,850 — 323,850 —% — —% 7/27/2023 (14) N/A (15) N/A (15) N/A (15) Mortgage Loan Financing 469,385 469,690 — 4.25% — 8.53% 2024-2031 N/A (17) 523,041 667,818 (18) CLO Debt 1,064,365 1,059,593 (19) — 5.88% — 8.33% 2024-2026 N/A (3) 1,331,079 1,331,079 Borrowings from the FHLB 213,000 213,000 — 2.74% — 5.18% 2023-2024 N/A (21) 250,747 250,747 (22) Senior Unsecured Notes 1,585,063 1,570,878 (23) — 4.25% — 5.25% 2025-2029 N/A N/A (24) N/A (24) N/A (24) Total Debt Obligations, Net $ 4,955,663 $ 4,082,428 $ 964,594 $ 3,141,485 $ 3,283,031 (1) LIBOR and Term SOFR rates in effect as of March 31, 2023 are used to calculate interest rates for floating rate debt, as applicable. (2) Two 12-month extension periods at Company’s option. No new advances are permitted after the initial maturity date. (3) First mortgage commercial real estate loans and senior and pari passu interests therein. It does not include the real estate collateralizing such loans. (4) Two additional 364-day periods at Company’s option. (5) 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. (6) Three additional 12-month extension periods at Company’s option. (7) One additional 12-month extension periods at Company’s option. No new advances are permitted. (8) Two additional 12-month extension periods at Company's option. No new advances permitted during the final 12-month period. (9) 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. (10) First mortgage, junior and mezzanine commercial real estate loans, and certain senior and/or pari passu interests therein. (11) Commercial real estate securities. It does not include the first mortgage commercial real estate loans collateralizing such securities. (12) Represents uncommitted securities repurchase facilities for which there is no committed amount subject to future advances. (13) Includes $1.9 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. (14) Four additional 12-month periods at Company’s option. (15) 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. (16) Anticipated repayment dates. (17) Certain of our real estate investments serve as collateral for our mortgage loan financing. (18) Using undepreciated carrying value of commercial real estate to approximate fair value. (19) Presented net of unamortized debt issuance costs of $4.8 million at March 31, 2023. (20) Represents the estimated maturity date based on the remaining reinvestment period and underlying loan maturities. (21) Investment grade commercial real estate securities and U.S. Treasury securities. It does not include the first mortgage commercial real estate loans collateralizing such securities. (22) Includes $6.6 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 $14.2 million at March 31, 2023. (24) The obligations under the senior unsecured notes are guaranteed by the Company and certain of its subsidiaries. December 31, 2022 Debt Obligations Committed / Carrying Value of Debt Obligations Committed but Unfunded Interest Rate at December 31, 2021(1) Current Term Maturity Remaining Extension Options Eligible Collateral Carrying Amount of Collateral Fair Value of Collateral Committed Loan Repurchase Facility(2) $ 500,000 $ 318,983 $ 181,017 6.07% — 6.57% 9/27/2025 (2) (3) $ 428,477 $ 429,276 Committed Loan Repurchase Facility 100,000 — 100,000 —% — —% 2/26/2023 (4) (5) — — Committed Loan Repurchase Facility 300,000 157,558 142,442 6.19% — 7.07% 12/19/2023 (6) (7) 244,102 244,102 Committed Loan Repurchase Facility 100,000 47,415 52,585 6% — 6% 4/30/2024 (8) (3) 63,307 63,307 Committed Loan Repurchase Facility 100,000 77,959 22,041 5.74% — 6.24% 1/3/2023 (2) (3) 103,393 103,393 Committed Loan Repurchase Facility 100,000 — 100,000 —% —% 1/22/2024 (9) (7) — — Committed Loan Repurchase Facility 100,000 14,979 85,021 7.07% — 7.07% 7/14/2023 (10) (11) 21,206 21,206 Total Committed Loan Repurchase Facilities 1,300,000 616,894 683,106 860,485 861,284 Committed Securities Repurchase Facility(2) 100,000 8,640 91,360 5.04% — 5.29% 5/27/2023 N/A (12) 10,023 10,023 Uncommitted Securities Repurchase Facility N/A (13) 222,328 N/A (13) 4.73% — 6% 3/2/2023 N/A (12) 247,351 247,351 (14) Total Repurchase Facilities 1,400,000 847,862 774,466 1,117,859 1,118,658 Revolving Credit Facility 323,850 — 323,850 —% — —% 7/27/2023 (15) N/A (16) N/A (16) N/A (16) Mortgage Loan Financing 497,454 497,991 — 4.25% — 8.03% 2023 - 2031(17) N/A (18) 559,885 710,977 (19) CLO Debt 1,064,365 1,058,462 (20) — 5.52% — 7.97% 2024 - 2026(21) N/A (3) 1,308,654 1,308,654 Borrowings from the FHLB 213,000 213,000 — 2.74% — 4.70% 2023 - 2024 N/A (22) 248,806 248,806 (23) Senior Unsecured Notes 1,643,794 1,628,382 (24) — 4.25% — 5.25% 2025 - 2029 N/A N/A (25) N/A (25) N/A (25) Total Debt Obligations, Net $ 5,142,463 $ 4,245,697 $ 1,098,316 $ 3,235,204 $ 3,387,095 (1) LIBOR and Term SOFR rates in effect as of December 31, 2022 are used to calculate interest rates for floating rate debt, as applicable. (2) Two 12-month extension 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) Two additional 364-day periods at Company’s option. (7) First mortgage and mezzanine commercial real estate loans and senior and pari passu interests therein. It does not include the real estate collateralizing such loans. (8) Three additional 12-month extension periods at Company’s option. (9) Two additional 12-month extension periods at Company's option. No new advances are permitted during the final 12-month period. (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 first mortgage commercial real estate loans collateralizing such securities. (13) Represents uncommitted securities repurchase facilities for which there is no committed amount subject to future advances. (14) Includes $2.0 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) Presented net of unamortized debt issuance costs of $5.9 million at December 31, 2022. (21) Represents the estimated maturity date based on the remaining reinvestment period and underlying loan maturities. (22) Investment grade commercial real estate securities. It does not include the first mortgage commercial real estate loans collateralizing such securities. (23) Includes $6.6 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. (24) Presented net of unamortized debt issuance costs of $15.4 million at December 31, 2022. (25) The obligations under the senior unsecured notes are guaranteed by the Company and certain of its subsidiaries. Committed Loan and Securities Repurchase Facilities The Company has entered into six committed master repurchase agreements, as outlined in the March 31, 2023 table above, totaling $1.2 billion of credit capacity in order to finance its lending activities. Assets pledged as collateral under these facilities are limited to whole mortgage loans or participation interests in mortgage loans collateralized by first liens on commercial properties and mezzanine debt. The Company also has a term master repurchase agreement with a major U.S. bank to finance CMBS totaling $100 million. The Company’s repurchase facilities include covenants covering net worth requirements, minimum liquidity levels, maximum leverage ratios, and minimum fixed charge coverage ratios. The Company was in compliance with all covenants as of March 31, 2023 and December 31, 2022. The Company has the option to extend some of the current facilities subject to a number of conditions, including satisfaction of certain notice requirements, the absence of an event of default, and the absence of a margin deficit, all as defined in the repurchase facility agreements. The lenders have sole discretion with respect to the inclusion of collateral in these facilities and the determination of the market value of the collateral on a daily basis, to be exercised on a good faith basis, and have the right in certain cases to require additional collateral, a full and/or partial repayment of the facilities (margin call), or a reduction in unused availability under the facilities, sufficient to rebalance the facilities if the estimated market value of the included collateral declines. As of March 31, 2023, the Company had total debt obligations of $769.3 million outstanding pursuant to repurchase agreements with six counterparties. As of March 31, 2023 no counterparties held collateral that exceeded the amounts borrowed under the related repurchase agreements by more than $152.9 million, or 10% of our total equity. As of March 31, 2023, the weighted average haircut, or the percent of collateral value in excess of the loan amount, under our repurchase agreements was 26%. There have been no significant fluctuations in haircuts across asset classes on our repurchase facilities. Revolving Credit Facility The Company’s Revolving Credit Facility provides for an aggregate maximum borrowing amount of $323.9 million, including a $25.0 million sublimit for the issuance of letters of credit. The Revolving Credit Facility is available on a revolving basis to finance the Company’s working capital needs and for general corporate purposes. On July 27, 2022, the Company amended its Revolving Credit Facility to increase the maximum borrowing amount to $323.9 million, extend the maturity date to July 27, 2023 with four additional one-year extension options, and reduce the interest rate to the sum of one-month Term SOFR plus a fixed margin of 2.50%. The amendment also provides for reductions in the fixed margin upon the achievement of investment grade credit ratings. As of March 31, 2023, the Company had no outstanding borrowings on the Revolving Credit Facility, but still maintains the ability to draw $323.9 million. The obligations under the Revolving Credit Facility are guaranteed by the Company and certain of its subsidiaries. The Revolving Credit Facility is secured by a pledge of the shares of (or other ownership or equity interests in) certain subsidiaries to the extent the pledge is not restricted under existing regulations, law or contractual obligations. The Company is subject to customary affirmative covenants and negative covenants, including limitations on the incurrence of additional debt, liens, restricted payments, sales of assets and affiliate transactions. In addition, the Company is required to comply with financial covenants relating to minimum net worth, maximum leverage, minimum liquidity, and minimum fixed charge coverage, consistent with our other credit facilities. The Company’s ability to borrow is dependent on, among other things, compliance with the financial covenants. The Revolving Credit Facility contains customary events of default, including non-payment of principal or interest, fees or other amounts, failure to perform or observe covenants, cross-default to other indebtedness, the rendering of judgments against the Company or certain of our subsidiaries to pay certain amounts of money and certain events of bankruptcy or insolvency. Debt Issuance Costs As of March 31, 2023 and December 31, 2022, the amounts of unamortized costs relating to our master repurchase facilities and Revolving Credit Facility were $4.9 million and $5.0 million, respectively, and are included in other assets in the consolidated balance sheets. Uncommitted Securities Repurchase Facilities The Company has also entered into multiple uncommitted master repurchase agreements collateralized by real estate securities with several counterparties. The borrowings under these agreements have typical advance rates between 75% and 95% of the fair value of collateral, which is primarily AAA-rated securities. Mortgage Loan Financing These non-recourse debt agreements provide for secured financing at rates ranging from 4.25% to 8.53%, and, as of March 31, 2023, have anticipated maturity dates between 2024-2031, with an average term of 3.9 years. These mortgage loans have carrying amounts of $469.7 million and $498.0 million, net of unamortized premiums of $2.3 million and $2.4 million as of March 31, 2023 and December 31, 2022, respectively, representing proceeds received upon financing greater than the contractual amounts due under these agreements. The premiums are being amortized over the remaining life of the respective debt instruments using the effective interest method. The Company recorded $0.2 million and $0.3 million of premium amortization, which decreased interest expense for the three months ended March 31, 2023 and 2022, respectively. The mortgage loans are collateralized by real estate and related lease intangibles, net, of $523.0 million and $559.9 million as of March 31, 2023 and December 31, 2022, respectively. During each of the three months ended March 31, 2023 and March 31, 2022, the Company did not execute any new term debt agreements to finance properties in its real estate portfolio. Collateralized Loan Obligations (“CLO”) Debt On July 13, 2021, a consolidated subsidiary of the Company completed a privately-marketed CLO transaction, which generated $498.2 million of gross proceeds to Ladder, financing $607.5 million of loans (“Contributed July 2021 CLO Loans”) at an 82% advance rate on a matched term, non-mark-to-market and non-recourse basis. A consolidated subsidiary of the Company retained an 18% subordinate and controlling interest in the CLO. The Company retained consent rights over major decisions with respect to the servicing of the Contributed July 2021 CLO Loans, including the right to appoint and replace the special servicer under the CLO. The CLO is a VIE and the Company is the primary beneficiary and, therefore, consolidated the VIE - Refer to Note 9, Consolidated Variable Interest Entities. On December 2, 2021, a consolidated subsidiary of the Company completed a privately marketed CLO transaction, which generated $566.2 million of gross proceeds to Ladder, financing $729.4 million of loans (“Contributed December 2021 CLO Loans”) at a maximum 77.6% advance rate on a matched term, non-mark-to-market and non-recourse basis. A consolidated subsidiary of the Company retained an 15.6% subordinate and controlling interest in the CLO. The Company also held two additional tranches as investments totaling 6.8% interest in the CLO. The Company retained consent rights over major decisions with respect to the servicing of the Contributed December 2021 CLO Loans, including the right to appoint and replace the special servicer under the CLO. The CLO is a VIE and the Company is the primary beneficiary and, therefore, consolidated the VIE - Refer to Note 9, Consolidated Variable Interest Entities. As of March 31, 2023, the Company had $1.1 billion of matched term, non-mark-to-market and non-recourse CLO debt included in debt obligations on its consolidated balance sheets, which includes unamortized debt issuance costs of $4.8 million. Borrowings from the Federal Home Loan Bank (“FHLB”) On July 11, 2012, Tuebor, a consolidated subsidiary of the Company, became a member of the FHLB and subsequently drew its first secured funding advances from the FHLB. As of February 19, 2021, pursuant to a final rule adopted by the Federal Housing Finance Agency (the “FHFA”) regarding the eligibility of captive insurance companies, Tuebor’s membership in the FHLB has been terminated, although outstanding advances may remain outstanding until their scheduled maturity dates. Funding for future advance paydowns is expected to be obtained from the natural amortization and/or sales of securities collateral, or from other financing sources. There is no assurance that the FHFA or the FHLB will not take actions that could adversely impact Tuebor’s existing advances. As of March 31, 2023, Tuebor had $213.0 million of borrowings outstanding, with terms of 0.4 years to 1.5 years (with a weighted average of 1.0 year), and interest rates of 2.74% to 5.18% (with a weighted average of 4.98%). As of March 31, 2023, collateral for the borrowings was comprised of $250.7 million of CMBS, U.S. Agency and U.S. Treasury securities (with advance rates of 71.7% to 97.1%). Tuebor is subject to state regulations which require that dividends (including dividends to the Company as its parent) may only be made with regulatory approval. However, there can be no assurance that we would obtain such approval if sought. Largely as a result of this restriction, approximately $836.8 million of Tuebor’s member’s capital was restricted from transfer via dividend to Tuebor’s parent without prior approval of state insurance regulators at March 31, 2023. To facilitate intercompany cash funding of operations and investments, Tuebor and its parent maintain regulator-approved intercompany borrowing/lending agreements. Senior Unsecured Notes As of March 31, 2023, the Company had $1.6 billion of unsecured corporate bonds outstanding. These unsecured financings were comprised of $327.8 million in aggregate principal amount of 5.25% senior notes due 2025 (the “2025 Notes”), $614.4 million in aggregate principal amount of 4.25% senior notes due 2027 (the “2027 Notes”) and $642.9 million in aggregate principal of 4.75% senior notes due 2029 (the “2029 Notes,” collectively with the 2025 Notes and the 2027 Notes, the “Notes”). During the three months ended March 31, 2023, the Company repurchased $16.2 million of the 2025 Notes and recognized a net gain of $1.3 million on extinguishment of debt, $36.4 million of the 2027 Notes and recognized a net gain of $6.4 million on extinguishment of debt, and $6.1 million of the 2029 Notes and recognized a net gain of $1.4 million on extinguishment of debt. LCFH issued the Notes with Ladder Capital Finance Corporation (“LCFC”), as co-issuers on a joint and several basis. LCFC is a 100% owned finance subsidiary of LCFH with no assets, operations, revenues or cash flows other than those related to the issuance, administration and repayment of the Notes. The Company and certain subsidiaries of LCFH currently guarantee the obligations under the Notes and the indenture. The Company was in compliance with all covenants of the Notes as of March 31, 2023 and 2022. The Notes require interest payments semi-annually in cash in arrears, are unsecured, and are subject to an unencumbered assets to unsecured debt covenant. The Company may redeem the Notes prior to their stated maturity, in whole or in part, at any time or from time to time, with required notice and at a redemption price as specified in each respective indenture governing the Notes, plus accrued and unpaid interest, if any, to the redemption date. The board of the directors has authorized the Company to repurchase any or all of the Notes from time to time without further approval. Secured Financing Facility On April 30, 2020, the Company entered into a strategic financing arrangement with a U.S. multinational corporation (the “Lender”), under which the Lender provided the Company with $206.4 million in senior secured financing (the “Secured Financing Facility”) to fund transitional and land loans. The Secured Financing Facility was secured on a first lien basis on a portfolio of certain of the Company’s loans and scheduled to mature on May 6, 2023, and borrowings thereunder bore interest at LIBOR (or a minimum of 0.75% if greater) plus 10.0%, with a minimum interest premium clause. The Senior Financing Facility, which was fully paid as of June 30, 2022, was non-recourse, subject to limited exceptions, and did not contain mark-to-market provisions. Additionally, the Senior Financing Facility provided the Company optionality to modify or restructure loans or forbear in exercising remedies, which maximized the Company’s financial flexibility. Combined Maturity of Debt Obligations The following schedule reflects the Company’s contractual payments under all borrowings by maturity ($ in thousands): Period ending December 31, Borrowings by 2023 $ 170,361 2024 603,270 2025 651,924 2026 89,161 2027 808,995 Thereafter 712,740 Subtotal 3,036,451 Debt issuance costs included in senior unsecured notes (14,185) Debt issuance costs included in mortgage loan financings (1,701) Premiums included in mortgage loan financings(2) 2,270 Total (3) $ 3,022,835 (1) The allocation of repayments under our committed loan repurchase facilities is based on the earlier of: (i) the maturity date of each agreement; or (ii) the maximum maturity date of the collateral loans, assuming all extension options are exercised by the borrower. (2) Represents deferred gains on intercompany mortgage loans, secured by our own real estate, sold into securitizations. These premiums are amortized as a reduction to interest expense. (3) Total does not include $1.1 billion of consolidated CLO debt obligations and the related debt issuance costs of $4.8 million, as the satisfaction of these liabilities will be paid through cash flow from loan collateral including amortization and will not require cash outlays from us. Financial Covenants The Company’s debt facilities are subject to covenants that require the Company to maintain a minimum level of total equity. Largely as a result of this restriction, approximately $871.4 million of the total equity is restricted from payment as a dividend by the Company at March 31, 2023. The Company was in compliance with all covenants as of March 31, 2023. LIBOR Transition The Company has implemented fallback language for our LIBOR-based bi-lateral committed repurchase facilities and Revolving Credit Facility, including adjustments as applicable to maintain the anticipated economic terms of the existing contracts. As of March 31, 2023, 59.8% and 40.2% of our floating rate debt obligations bear interest indexed to LIBOR and Term SOFR, respectively. The Company continues to monitor the transition guidance provided by the Alternative Reference Rates Committee, the International Swaps and Derivatives Association, Inc., the Financial Accounting Standards Board and other relevant regulators, agencies and industry working groups, and we continue to engage with clients, lenders, market participants and other industry leaders as the transition from LIBOR progresses. |
DERIVATIVE INSTRUMENTS
DERIVATIVE INSTRUMENTS | 3 Months Ended |
Mar. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE INSTRUMENTS | 7. DERIVATIVE INSTRUMENTS The Company primarily uses derivative instruments to economically manage the fair value variability of fixed rate assets caused by interest rate fluctuations and overall portfolio market risk. The following is a breakdown of the derivatives outstanding as of March 31, 2023 and December 31, 2022 ($ in thousands): March 31, 2023 Fair Value Remaining Contract Type Notional Asset(1) Liability(1) Caps 1 Month Term SOFR $ 808 $ 1,470 $ — 1.38 Futures 5-year Treasury-Note Futures 44,200 $ — $ 20 0.25 10-year Treasury-Note Futures 61,400 — 29 0.25 Total futures 105,600 — 49 Total derivatives $ 106,408 $ 1,470 $ 49 (1) Shown as derivative instruments in the accompanying consolidated balance sheets. December 31, 2022 Fair Value Remaining Contract Type Notional Asset(1) Liability(1) Caps 1 Month Term SOFR $ 90,000 $ 1,804 $ — 1.68 Futures 5-year Treasury-Note Futures 44,200 51 — 0.25 10-year Treasury-Note Futures 61,400 71 — 0.25 Total futures 105,600 122 — Options Options 9,100 112 — 0.20 Total derivatives $ 204,700 $ 2,038 $ — (1) Shown as derivative instruments 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 income for the three months ended March 31, 2023 and 2022 ($ in thousands): Three Months Ended March 31, 2023 Contract Type Unrealized Realized Net Result Caps $ (334) $ 237 $ (97) Futures (171) (1,861) (2,032) Options 131 (244) (113) Total $ (374) $ (1,868) $ (2,242) Three Months Ended March 31, 2022 Contract Type Unrealized Realized Net Result Caps $ (6) $ — $ (6) Futures (162) 3,303 3,141 Total $ (168) $ 3,303 $ 3,135 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 International Swaps and Derivatives Association (“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. Variation margin pledged on the Company’s centrally cleared interest rate futures is settled against the realized results of these futures. The Company’s counterparties held $2.7 million and $2.5 million of cash margin as collateral for derivatives as of March 31, 2023 and December 31, 2022, respectively, which is included in restricted cash in the consolidated balance sheets. |
OFFSETTING ASSETS AND LIABILITI
OFFSETTING ASSETS AND LIABILITIES | 3 Months Ended |
Mar. 31, 2023 | |
Offsetting [Abstract] | |
OFFSETTING ASSETS AND LIABILITIES | 8. OFFSETTING ASSETS AND LIABILITIES The following tables present both gross information and net information about derivatives and other instruments eligible for offset in the statement of financial position as of March 31, 2023 and December 31, 2022. The Company’s accounting policy is to record derivative asset and liability positions on a gross basis; therefore, the following tables present the gross derivative asset and liability positions recorded on the balance sheets, while also disclosing the eligible amounts of financial instruments and cash collateral to the extent those amounts could offset the gross amount of derivative asset and liability positions. The actual amounts of collateral posted by or received from counterparties may be in excess of the amounts disclosed in the following tables as the following only disclose amounts eligible to be offset to the extent of the recorded gross derivative positions. The following table represents offsetting of financial assets and derivative assets as of March 31, 2023 ($ in thousands): Description Gross amounts of Gross amounts Net amounts of Gross amounts not offset in the Net amount Financial Cash collateral Derivatives $ 1,421 $ — $ 1,421 $ — $ (2,655) $ (1,234) Total $ 1,421 $ — $ 1,421 $ — $ (2,655) $ (1,234) (1) Included in restricted cash on consolidated balance sheets. The following table represents offsetting of financial liabilities and derivative liabilities as of March 31, 2023 ($ in thousands): Description Gross amounts of Gross amounts Net amounts of Gross amounts not offset in the Net amount Financial Cash collateral Repurchase agreements $ 769,266 $ — $ 769,266 $ 769,266 $ 3,333 $ 765,933 Total $ 769,266 $ — $ 769,266 $ 769,266 $ 3,333 $ 765,933 (1) Included in restricted cash on consolidated balance sheets. The following table represents offsetting of financial assets and derivative assets as of December 31, 2022 ($ in thousands): Description Gross amounts of Gross amounts Net amounts of Gross amounts not offset in the Net amount Financial Cash collateral Derivatives $ 2,038 $ — $ 2,038 $ — $ (2,505) $ (467) Total $ 2,038 $ — $ 2,038 $ — $ (2,505) $ (467) (1) Included in restricted cash on consolidated balance sheets. The following table represents offsetting of financial liabilities and derivative liabilities as of December 31, 2022 ($ in thousands): Description Gross amounts of Gross amounts Net amounts of Gross amounts not offset in the Net amount Financial Cash collateral Repurchase agreements $ 847,863 $ — $ 847,863 $ 847,863 $ 19,128 $ 828,735 Total $ 847,863 $ — $ 847,863 $ 847,863 $ 19,128 $ 828,735 (1) Included in restricted cash on consolidated balance sheets. |
CONSOLIDATED VARIABLE INTEREST
CONSOLIDATED VARIABLE INTEREST ENTITIES | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
CONSOLIDATED VARIABLE INTEREST ENTITIES | 9. CONSOLIDATED VARIABLE INTEREST ENTITIES The Company consolidates on its balance sheet two CLOs that are considered VIEs as of March 31, 2023 and December 31, 2022 ($ in thousands): March 31, 2023 December 31, 2022 Restricted cash $ 1,170 $ 4,902 Mortgage loan receivables held for investment, net, at amortized cost 1,331,079 1,308,654 Accrued interest receivable 8,817 8,313 Other assets 4 17,505 Total assets $ 1,341,070 $ 1,339,374 Debt obligations, net $ 1,059,593 $ 1,058,462 Accrued expenses 3,213 3,029 Other liabilities 65 65 Total liabilities 1,062,871 1,061,556 Net equity in VIEs (eliminated in consolidation) 278,199 277,818 Total equity 278,199 277,818 Total liabilities and equity $ 1,341,070 $ 1,339,374 Refer to Note 7. Debt Obligations, Net - Collateralized Loan Obligations (“CLO”) Debt for further details. |
EQUITY STRUCTURE AND ACCOUNTS
EQUITY STRUCTURE AND ACCOUNTS | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
EQUITY STRUCTURE AND ACCOUNTS | 10. EQUITY STRUCTURE AND ACCOUNTS Stock Repurchases On July 27, 2022, the board of directors authorized the repurchase of $50.0 million of the Company’s Class A common stock from time to time without further approval. This authorization increased the remaining outstanding authorization per the August 4, 2021 authorization from $39.5 million to $50.0 million. 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 March 31, 2023, the Company has a remaining amount available for repurchase of $44.5 million, which represents 3.7% in the aggregate of its outstanding Class A common stock, based on the closing price of $9.45 per share on such date. The following tables summarize the Company’s repurchase activity of its Class A common stock during the three months ended March 31, 2023 and 2022 ($ in thousands): Shares Amount(1) Authorizations remaining as of December 31, 2022 $ 46,737 Repurchases paid 250,000 (2,285) Authorizations remaining as of March 31, 2023 $ 44,452 (1) Amount excludes commissions paid associated with share repurchases. Shares Amount(1) Authorizations remaining as of December 31, 2021 $ 38,102 Repurchases paid 20,000 (214) Authorizations remaining as of March 31, 2022 $ 37,888 (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 three months ended March 31, 2023 and 2022: Declaration Date Dividend per Share March 15, 2023 $ 0.23 Total $ 0.23 March 15, 2022 $ 0.20 Total $ 0.20 Changes in Accumulated Other Comprehensive Income (Loss) 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 three months ended March 31, 2023 and 2022 ($ in thousands): Accumulated Other Comprehensive Income (Loss) December 31, 2022 $ (21,009) Other comprehensive income (loss) 3,485 March 31, 2023 $ (17,524) Accumulated Other Comprehensive Income (Loss) December 31, 2021 $ (4,112) Other comprehensive income (loss) (6,641) March 31, 2022 $ (10,753) |
NONCONTROLLING INTERESTS
NONCONTROLLING INTERESTS | 3 Months Ended |
Mar. 31, 2023 | |
Noncontrolling Interest [Abstract] | |
NONCONTROLLING INTERESTS | 11. NONCONTROLLING INTERESTS Noncontrolling Interests in Consolidated Ventures As of March 31, 2023, the Company consolidates two ventures and in each, there are different 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 $79.5 million, and a single-tenant office building in Oakland County, MI with a book value of $8.7 million. The Company makes distributions and allocates income from these ventures to the noncontrolling interests in accordance with the terms of the respective governing agreements. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | 12. EARNINGS PER SHARE The Company’s net income (loss) and weighted average shares outstanding for the three months ended March 31, 2023 and 2022 consist of the following: Three Months Ended March 31, ($ in thousands except share amounts) 2023 2022 Basic and Diluted Net income (loss) available for Class A common shareholders $ 22,408 $ 19,032 Weighted average shares outstanding: Basic 124,493,132 124,305,943 Diluted 124,656,102 125,478,001 The calculation of basic and diluted net income (loss) per share amounts for the three months ended March 31, 2023 and 2022 consist of the following: Three Months Ended March 31, (In thousands except share and per share amounts) (1) 2023 2022 Basic Net Income (Loss) Per Share of Class A Common Stock Numerator : Net income (loss) attributable to Class A common shareholders $ 22,408 $ 19,032 Denominator : Weighted average number of shares of Class A common stock outstanding 124,493,132 124,305,943 Basic net income (loss) per share of Class A common stock $ 0.18 $ 0.15 Diluted Net Income (Loss) Per Share of Class A Common Stock Numerator: Net income (loss) attributable to Class A common shareholders $ 22,408 $ 19,032 Diluted net income (loss) attributable to Class A common shareholders 22,408 19,032 Denominator: Basic weighted average number of shares of Class A common stock outstanding 124,493,132 124,305,943 Add - dilutive effect of: Incremental shares of unvested Class A restricted stock(1) 162,970 1,172,058 Diluted weighted average number of shares of Class A common stock outstanding (2) 124,656,102 125,478,001 Diluted net income (loss) per share of Class A common stock $ 0.18 $ 0.15 (1) The Company is using the treasury stock method. (2) There were 390,313 anti-dilutive shares as of March 31, 2023. |
STOCK BASED AND OTHER COMPENSAT
STOCK BASED AND OTHER COMPENSATION PLANS | 3 Months Ended |
Mar. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
STOCK BASED AND OTHER COMPENSATION PLANS | 13. STOCK BASED AND OTHER COMPENSATION PLANS Summary of Stock and Shares Unvested/Outstanding The following table summarizes the impact on the consolidated statements of income of the various stock-based compensation plans and other compensation plans ($ in thousands): Three Months Ended March 31, 2023 2022 Stock-based compensation expense $ 9,124 $ 20,412 Total Stock Based Compensation Expense(1) $ 9,124 $ 20,412 (1) Variance between the three months ended March 31, 2023 and March 31, 2022 is primarily due to timing of the 2022 and 2021 grants of employee stock-based compensation. A summary of the grants is presented below: Three Months Ended March 31, 2023 2022 Number Weighted Number Weighted Grants - Class A Common Stock 1,417,561 $ 11.58 2,843,340 $ 11.89 The table below presents the number of unvested shares of Class A common stock and outstanding stock options at March 31, 2023 and changes during 2023 of the Class A common stock and stock options of Ladder Capital Corp granted under the 2014 Omnibus Incentive Plan: Restricted Stock Weighted Average Grant Date Fair Value Stock Options Nonvested/Outstanding at December 31, 2022 2,529,571 $ 12.62 623,788 Granted 1,417,561 11.58 — Vested (1,697,350) 12.14 — Forfeited (32,446) 10.32 — Nonvested/Outstanding at March 31, 2023 2,217,336 $ 12.36 623,788 Exercisable at March 31, 2023 (1) 623,788 (1) The weighted average exercise price of outstanding options is $14.84 at March 31, 2023. At March 31, 2023, there was $19.2 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 35.0 months, with a weighted average remaining vesting period of 26.6 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 2023 with respect to 2022 Performance For 2022 performance, certain employees received stock-based incentive equity in February 2023. Restricted stock subject to time-based vesting criteria will vest in three installments on February 18 of each of 2024, 2025 and 2026, subject to continued employment on the applicable vesting dates. 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 pre-tax return on average equity, based on distributable earnings divided by the Company’s average shareholders’ equity, equal to or greater than 8% for such year (the “Performance Target”) for the years ended December 31, 2023, 2024 and 2025, 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 pre-tax return on average equity of 8% based on distributable earnings divided by the Company’s average shareholders’ 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”). Approximately 2/3 of all the shares subject to attainment of the Performance Target are also subject to the Catch-Up Provision, as the Catch-Up Provision is not available for the missed performance during the third performance year and has the effect of requiring the Company to achieve an average 8% return over the full three-year performance plan in order to be effective. 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. The probability of meeting the performance outcome is assessed quarterly. On February 18, 2023, in connection with 2022 performance, annual stock awards were granted to management employees (each, a “Management Grantee”), with an aggregate grant date fair value of $8.5 million, which represents 733,607 shares of Class A common stock. The grant to Mr. Harris and approximately half of the grants to each of Ms. McCormack and Mr. Perelman were unrestricted. The other half of incentive equity granted to each of Ms. McCormack and Mr. Perelman is restricted stock subject to attainment of the Performance Target for the applicable years and is also subject to the Catch-Up Provision described above. For the grants to Mr. Miceli and Ms. Porcella (a total of 101,344 shares with an aggregate fair value of $1.2 million), approximately half of the awards are subject to time-based vesting criteria and the remaining half are subject to attainment of the Performance Target for the applicable years. On February 18, 2023, in connection with 2022 performance, annual stock awards were granted to certain non-management employees (“Non-Management Grantees”) with an aggregate grant date fair value of $7.5 million, which represents 651,429 shares of Class A common stock. Of these awards, 19,558 shares were unrestricted, 306,162 shares are subject to time-based vesting criteria and the remaining 325,709 shares are subject to the attainment of the Performance Target, including the Catch-Up Provision, for the applicable years. Other 2023 Restricted Stock Awards On February 18, 2023, certain members of the board of directors received annual restricted stock awards with a grant date fair value of $0.4 million, representing 32,525 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. Annual Incentive Awards Granted in 2022 with respect to 2021 Performance For 2021 performance, certain employees received stock-based incentive equity in January 2022. Restricted stock subject to time-based vesting criteria will vest in three installments on February 18 of each of 2023, 2024 and 2025, subject to continued employment on the applicable vesting dates. 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 the Performance Target for the years ended December 31, 2022, 2023 and 2024, respectively. Approximately 2/3 of all the shares subject to attainment of the Performance Target are also subject to 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. The probability of meeting the performance outcome is assessed quarterly. On January 31, 2022, in connection with 2021 performance, annual stock awards were granted to management employees (each, a “Management Grantee”), with an aggregate grant date fair value of $18 million, which represents 1,517,627 shares of Class A common stock. The grant to Mr. Harris and approximately 2/3 of the grants to each of Ms. McCormack and Mr. Perelman were unrestricted. The other 1/3 of incentive equity granted to each of Ms. McCormack and Mr. Perelman is restricted stock subject to attainment of the Performance Target for the applicable years and is also subject to the Catch-Up Provision described above. For the grants to Mr. Miceli and Ms. Porcella (a total of 210,662 shares with an aggregate fair value of $2.5 million), approximately 1/3 of the awards were unrestricted, with another 1/3 of the awards subject to time-based vesting criteria, and the remaining 1/3 subject to attainment of the Performance Target for the applicable years. On January 31, 2022, in connection with 2021 performance, annual stock awards were granted to certain non-management employees (“Non-Management Grantees”) with an aggregate grant date fair value of $15.4 million, which represents 1,293,853 shares of Class A common stock. Of these awards, 264,704 shares were unrestricted, 497,169 shares are subject to time-based vesting criteria, and the remaining 531,980 shares are subject to attainment of the Performance Target, including the Catch-Up Provision, for the applicable years. Other Incentive Awards Granted in 2022 On May 10, 2022, a new employee of the Company received a restricted stock award with a grant date fair value of $0.4 million, representing 33,784 shares of restricted Class A common stock. Fifty percent of the restricted stock award is subject to time-based vesting criteria, and the remaining 50% of the restricted stock award is subject to attainment of the Performance Target for the applicable years. The time-vesting restricted stock will vest in three installments on February 18 of each of 2023, 2024 and 2025, 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, 2022, 2023 and 2024, respectively. The Catch-Up Provision applies to the performance vesting portion of this award, provided that a termination has not occurred. The Company has elected to recognize the compensation expense related to the time-based vesting criteria of these Restricted Stock Awards on a straight-line basis over the requisite service period. Other 2022 Restricted Stock Awards On February 18, 2022, certain members of the board of directors received annual restricted stock awards with a grant date fair value of $0.4 million, representing 31,860 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. Change in Control Upon a change in control (as defined in the respective award agreements), restricted stock awards to Mr. Miceli, Ms. McCormack, Mr. Perelman, and one Non-Management Grantee will become fully vested if: (1) such 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 Grantee’s employment is terminated without cause or due to death or disability or the Grantee resigns for Good Reason, as defined in each Grantee’s employment agreement. The compensation committee retains the right, in its sole discretion, to provide for the accelerated vesting (in whole or in part) of the restricted stock awards granted. In the event Ms. Porcella or a Non-Management Grantee, except for the one mentioned above, 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 (or be forfeited) in accordance with the performance conditions. |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | 14. 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 March 31, 2023 and December 31, 2022 are as follows ($ in thousands): March 31, 2023 Weighted Average Principal Amount Amortized Cost Basis/Purchase Price Fair Value Fair Value Method Yield Remaining Assets: CMBS(1) $ 503,183 $ 502,710 $ 485,191 Internal model, third-party inputs 5.76 % 1.01 CMBS interest-only(1) 898,620 (2) 9,493 9,537 Internal model, third-party inputs 3.82 % 1.37 GNMA interest-only(3) 44,966 (2) 265 385 Internal model, third-party inputs 5.95 % 3.09 Agency securities(1) 32 33 31 Internal model, third-party inputs 2.70 % 1.42 U.S. Treasury securities(1) 25,000 24,772 24,772 Internal model, third-party inputs 4.10 % 0.29 Equity securities(3) N/A 160 113 Observable market prices N/A N/A Mortgage loan receivables held for investment, net, at amortized cost(4) 3,809,591 3,794,075 3,306,791 Discounted Cash Flow(5) 9.18 % 1.07 Mortgage loan receivables held for sale 31,350 27,197 27,197 Internal model, third-party inputs(6) 4.57 % 8.94 FHLB stock(7) 9,585 9,585 9,585 (7) 4.75 % N/A Nonhedge derivatives(1)(10) 106,408 1,421 1,421 Counterparty quotations N/A 1.42 Liabilities: Repurchase agreements - short-term 402,869 402,869 402,869 Cost plus Accrued Interest (8) 5.76 % 0.53 Repurchase agreements - long-term 366,398 366,398 366,398 Discounted Cash Flow(9) 5.77 % 2.31 Mortgage loan financing 469,121 469,690 453,300 Discounted Cash Flow 5.68 % 3.31 CLO debt 1,064,365 1,059,593 1,059,593 Discounted Cash Flow(9) 7.00 % 15.68 Borrowings from the FHLB 213,000 213,000 212,911 Discounted Cash Flow 1.21 % 1.00 Senior unsecured notes 1,585,063 1,570,878 1,244,020 Internal model, third-party inputs 4.66 % 4.53 (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) Balance does not include impact of allowance for current expected credit losses of $25.5 million at March 31, 2023. (5) 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. (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) For repurchase agreements - short term, the value approximates the cost plus accrued interest. (9) For repurchase agreements - long term 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. (10) The outstanding face amount of the nonhedge derivatives represents the notional amount of the underlying contracts. December 31, 2022 Weighted Average Principal Amount Amortized Cost Basis/Purchase Price Fair Value Fair Value Method Yield Remaining Assets: CMBS(1) $ 562,839 $ 562,246 $ 541,333 Internal model, third-party inputs 5.32 % 1.06 CMBS interest-only(1) 1,026,195 (2) 10,498 10,443 Internal model, third-party inputs 3.65 % 1.45 GNMA interest-only(3) 45,369 (2) 285 281 Internal model, third-party inputs 4.23 % 3.30 Agency securities(1) 36 36 35 Internal model, third-party inputs 2.70 % 1.54 U.S. Treasury securities(1) 36,000 35,328 35,328 Internal model, third-party inputs 4.17 % 0.60 Equity securities(3) N/A 160 118 Observable market prices N/A N/A Mortgage loan receivables held for investment, net, at amortized cost(4) 3,907,295 3,885,746 3,875,708 Discounted Cash Flow(5) 8.85 % 1.26 Mortgage loan receivables held for sale 31,350 27,391 27,391 Internal model, third-party inputs(6) 4.57 % 9.19 FHLB stock(7) 9,585 9,585 9,585 (7) 4.75 % N/A Nonhedge derivatives(1)(10) 204,700 2,038 2,038 Counterparty quotations N/A 1.52 Liabilities: Repurchase agreements - short-term 481,465 481,465 481,465 Cost plus Accrued Interest (8) 4.04 % 0.37 Repurchase agreements - long-term 366,398 366,398 366,398 Discounted Cash Flow(9) 4.06 % 2.56 Mortgage loan financing 497,454 497,991 477,101 Discounted Cash Flow 5.51 % 3.36 CLO debt 1,064,365 1,058,462 1,058,462 Discounted Cash Flow(9) 6.35 % 15.92 Borrowings from the FHLB 213,000 213,000 213,055 Discounted Cash Flow 1.61 % 1.25 Senior unsecured notes 1,643,794 1,628,382 1,397,977 Internal model, third-party inputs 4.66 % 4.75 (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) Balance does not include impact of allowance for current expected credit losses of $20.8 million at December 31, 2022. (5) Fair value for floating rate mortgage loan receivables, held for investment is estimated to approximate the outstanding face amount given the short interest rate reset risk (30 days) and no significant change in credit risk. Fair value for fixed rate mortgage loan receivables, held for investment is measured using a discounted cash flow model. (6) Fair value of the FHLB stock approximates outstanding face amount as the Company’s captive insurance subsidiary is restricted from trading the stock and can only put the stock back to the FHLB, at the FHLB’s discretion, at par. (7) The outstanding face amount of the nonhedge derivatives represents the notional amount of the underlying contracts. (8) Fair value for repurchase agreement liabilities - short term borrowings under the Secured Financing Facility and borrowings under the Revolving Credit Facility is estimated to approximate carrying amount primarily due to the short interest rate reset risk (30 days) of the financings and the high credit quality of the assets collateralizing these positions. If the collateral is determined to be impaired, the related financing would be revalued accordingly. There are no impairments on any positions. (9) For repurchase agreements - long term and CLO debt, the carrying value approximates the fair value discounting the expected cash flows at current market rates. If the collateral is determined to be impaired, the related financing would be revalued accordingly. There are no impairments on any positions. (10) The outstanding face amount of the nonhedge derivatives represents the notional amount of the underlying contracts. The following table summarizes the Company’s financial assets and liabilities, which are both reported at fair value on a recurring basis (as indicated) or amortized cost/par, at March 31, 2023 and December 31, 2022 ($ in thousands): March 31, 2023 Financial Instruments Reported at Fair Value on Consolidated Statements of Financial Condition Principal Fair Value Level 1 Level 2 Level 3 Total Assets: CMBS(1) $ 493,802 $ — $ — $ 476,181 $ 476,181 CMBS interest-only(1) 890,193 (2) — — 9,150 9,150 GNMA interest-only(3) 44,966 (2) — — 385 385 Agency securities(1) 32 — — 31 31 U.S. Treasury securities 25,000 24,772 — — 24,772 Equity securities N/A 113 — — 113 Nonhedge derivatives(4) 106,408 — 1,421 — 1,421 $ 24,885 $ 1,421 $ 485,747 $ 512,053 Financial Instruments Not Reported at Fair Value on Consolidated Statements of Financial Condition Principal Fair Value Level 1 Level 2 Level 3 Total Assets: Mortgage loan receivable held for investment, net, at amortized cost: Mortgage loan receivables held for investment, net, at amortized cost(5) $ 3,809,591 $ — $ — $ 3,306,791 $ 3,306,791 Mortgage loan receivable held for sale(6) 31,350 — — 27,197 27,197 CMBS(7) 9,381 — — 9,009 9,009 CMBS interest-only(7) 8,426 — — 387 387 FHLB stock 9,585 — — 9,585 9,585 $ — $ — $ 3,352,969 $ 3,352,969 Liabilities: Repurchase agreements - short-term $ 402,869 $ — $ — $ 402,869 $ 402,869 Repurchase agreements - long-term 366,398 — — 366,398 366,398 Mortgage loan financing 469,121 — — 453,300 453,300 CLO debt 1,064,365 — — 1,059,593 1,059,593 Borrowings from the FHLB 213,000 — — 212,911 212,911 Senior unsecured notes 1,585,063 — — 1,244,020 1,244,020 $ — $ — $ 3,739,091 $ 3,739,091 (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) Balance does not include impact of allowance for current expected credit losses of $25.5 million at March 31, 2023. (6) A lower of cost or market adjustment was recorded as of March 31, 2023. (7) 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, are classified as held-to-maturity and reported at amortized cost. December 31, 2022 Financial Instruments Reported at Fair Value on Consolidated Statements of Financial Condition Principal Fair Value Level 1 Level 2 Level 3 Total Assets: CMBS(1) $ 553,424 $ — $ — $ 532,304 $ 532,304 CMBS interest-only(1) 1,017,735 (2) — — 10,026 10,026 GNMA interest-only(3) 45,369 (2) — — 281 281 Agency securities(1) 36 — — 35 35 Equity securities N/A 118 — — 118 U.S. Treasury securities 36,000 35,328 — — 35,328 Nonhedge derivatives(4) 204,700 — 2,038 — 2,038 $ 35,446 $ 2,038 $ 542,646 $ 580,130 Financial Instruments Not Reported at Fair Value on Consolidated Statements of Financial Condition Principal Fair Value Level 1 Level 2 Level 3 Total Assets: Mortgage loan receivable held for investment, net, at amortized cost: Mortgage loan receivables held for investment, net, at amortized cost(5) $ 3,907,295 $ — $ — $ 3,875,708 $ 3,875,708 Mortgage loan receivable held for sale(6) 31,350 — — 27,391 27,391 CMBS(7) 9,415 — — 9,030 9,030 CMBS interest-only(7) 8,460 — — 417 417 FHLB stock 9,585 — — 9,585 9,585 $ — $ — $ 3,922,131 $ 3,922,131 Liabilities: Repurchase agreements - short-term $ 481,465 $ — $ — $ 481,465 $ 481,465 Repurchase agreements - long-term 366,398 — — 366,398 366,398 Mortgage loan financing 497,454 — — 477,101 477,101 CLO debt 1,064,365 — — 1,058,462 1,058,462 Borrowings from the FHLB 213,000 — — 213,055 213,055 Senior unsecured notes 1,643,794 — — 1,397,977 1,397,977 $ — $ — $ 3,994,458 $ 3,994,458 (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) Balance does not include impact of allowance for current expected credit losses of $20.8 million at December 31, 2021. (6) A lower of cost or market adjustment was recorded as of December 31, 2022. (7) Restricted securities which are designated as risk retention securities under the Dodd-Frank Act and are therefore subject to transfer restrictions over the term of the securitization trust, are classified as held-to-maturity and reported at amortized cost. The following table summarizes changes in Level 3 financial instruments reported at fair value on the consolidated statements of financial condition for the three months ended March 31, 2023 and 2022 ($ in thousands): Three Months Ended March 31, Level 3 2023 2022 Balance at January 1, $ 542,646 $ 692,864 Transfer from level 2 — — Purchases 546 29,603 Sales (10,689) (4,261) Paydowns/maturities (49,180) (57,489) Amortization of premium/discount (880) (1,326) Unrealized gain/(loss) 3,616 (6,638) Realized gain/(loss) on sale (312) (103) Balance at March 31, $ 485,747 $ 652,650 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): March 31, 2023 Financial Instrument Carrying Value Valuation Technique Unobservable Input Minimum Weighted Average Maximum CMBS(1) $ 476,181 Discounted cash flow Yield (4) 2.88 % 5.67 % 17.69 % CMBS interest-only(1) 9,150 (2) Discounted cash flow Yield (4) 2.56 % 2.85 % 22.62 % GNMA interest-only(3) 385 (2) Discounted cash flow Yield (4) 1.28 % 5.95 % 10.00 % Agency securities(1) 31 Discounted cash flow Yield (4) 2.70 % 2.70 % 2.70 % Total $ 485,747 December 31, 2022 Financial Instrument Carrying Value Valuation Technique Unobservable Input Minimum Weighted Average Maximum CMBS(1) $ 532,304 Discounted cash flow Yield (4) 2.89 % 5.29 % 17.47 % CMBS interest-only(1) 10,026 (2) Discounted cash flow Yield (4) 1.39 % 3.72 % 19.66 % GNMA interest-only(3) 281 (2) Discounted cash flow Yield (4) 1.28 % 5.50 % 10.00 % Agency securities(1) 35 Discounted cash flow Yield (4) 2.70 % 2.70 % 2.70 % Total $ 542,646 (1) CMBS, CMBS interest-only securities, Agency securities, GNMA permanent securities, U.S. Treasury 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) GNMA 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. 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 be impaired. 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 | 3 Months Ended |
Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 15. INCOME TAXES The Company elected to be taxed as a REIT under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended (the “Code”), commencing with the taxable year ended December 31, 2015 (the REIT Election”). As such, the Company’s income is generally not subject to U.S. federal, state and local corporate income taxes other than as described below. Certain of the Company’s subsidiaries have elected to be treated as TRSs. TRSs permit the Company to participate in certain activities from which REITs are generally precluded, as long as these activities meet specific criteria, are conducted within the parameters of certain limitations established by the Code, and are conducted in entities which elect to be treated as taxable subsidiaries under the Code. To the extent these criteria are met, the Company will continue to maintain its qualification as a REIT. The Company’s TRSs are not consolidated for U.S. federal income tax purposes, but are instead taxed as corporations. For financial reporting purposes, a provision for current and deferred taxes is established for the portion of earnings recognized by the Company with respect to its interest in TRSs. Current income tax expense (benefit) was $0.9 million for the three months ended March 31, 2023 and $(0.9) million for the three months ended March 31, 2022. As of March 31, 2023 and December 31, 2022, the Company’s net deferred tax assets (liabilities) were $(2.6) million and $(1.8) million, respectively, and are included in other assets (other liabilities) in the Company’s consolidated balance sheets. Deferred income tax expense (benefit) included within the provision for income taxes was $0.8 million and $(0.4) million for the three months ended March 31, 2023 and March 31, 2022, 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 March 31, 2023, the Company had a deferred tax asset of $4.5 million relating to capital losses which it may only use to offset capital gains. These tax attributes will begin to expire if unused in 2024. 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 March 31, 2023, the Company had $1.4 million of deferred tax asset 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’s tax returns are subject to audit by taxing authorities. Generally, as of March 31, 2023, the tax years 2019-2022 remain open to examination by the major taxing jurisdictions in which the Company is subject to taxes. One of the Company’s subsidiary entities is currently under an IRS audit for tax year 2020. The Company does not expect these audits to result in any material changes to the Company’s financial position. In April 2023, a settlement was reached for $2.6 million with New York City pertaining to an audit of the Company for the years 2012-2013 resulting in an incremental income tax expense of $0.2 million for the three months ended March 31, 2023. The Company does not expect tax expense to have an impact on either short, or long-term liquidity or capital needs. As of March 31, 2023 and December 31, 2022, the Company’s unrecognized tax benefit is a liability for $2.6 million and $2.4 million, respectively, and is included in the accrued expenses in the Company’s consolidated balance sheets. This unrecognized tax benefit, if recognized, would have a favorable impact on the Company’s effective income tax rate in future periods. As of March 31, 2023, the Company has not recognized a significant amount of any interest or penalties related to uncertain tax positions. In addition, the Company does not believe that it has any tax positions for which it is reasonably possible that it will be required to record a significant liability for unrecognized tax benefits within the next twelve months. 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. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 3 Months Ended |
Mar. 31, 2023 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | 16. RELATED PARTY TRANSACTIONS The Company has no material related party relationships to disclose. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 17. COMMITMENTS AND CONTINGENCIES Leases As of March 31, 2023, the Company had a $16.2 million lease liability and a $15.5 million right-of-use asset on its consolidated balance sheets recorded within other liabilities other assets Future minimum lease payments under non-cancelable operating leases as of March 31, 2023 are as follows ($ in thousands): 2023 (last 9 months) $ 788 2024 2,171 2025 2,207 2026 2,219 2027 2,232 Thereafter 13,344 Total undiscounted cash flows 22,961 Present value discount (1) (6,728) Lease liabilities $ 16,233 (1) Lease liabilities were discounted at the Company's weighted average incremental borrowing rate for similar collateral, which is estimated to be 6.62%, and the remaining lease term is 10.3 years. Unfunded Loan Commitments As of March 31, 2023, the Company’s off-balance sheet arrangements consisted of $289.8 million of unfunded commitments on mortgage loan receivables held for investment to provide additional first mortgage loan financing over the next three years at rates to be determined at the time of funding, 54% of which additional funds relate to the occurrence of certain “good news” events, such as the owner concluding a lease agreement with a major tenant in the building or reaching some pre-determined net operating income. As of December 31, 2022, the Company’s off-balance sheet arrangements consisted of $321.8 million of unfunded commitments on mortgage loan receivables held for investment to provide additional first mortgage loan financing. Commitments are subject to our loan borrowers’ satisfaction of certain financial and nonfinancial covenants and may or may not be funded depending on a variety of circumstances including timing, credit metric hurdles, and other nonfinancial events occurring. The Company carefully monitors the progress of work at properties that serve as collateral underlying its commercial mortgage loans, including the progress of capital expenditures, construction, leasing and business plans in light of current market conditions. These commitments are not reflected on the consolidated balance sheets. Unsettled Trades |
SEGMENT REPORTING
SEGMENT REPORTING | 3 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | 18. SEGMENT REPORTING The Company has determined that it has three reportable segments based on how the chief operating decision makers review and manage the business. These reportable segments include loans, securities, and real estate. The loans segment includes mortgage loan receivables held for investment (balance sheet loans) and mortgage loan receivables held for sale (conduit loans). The securities segment is composed of all of the Company’s activities related to securities, which include investments in CMBS, U.S. Agency securities, corporate bonds, equity securities and U.S. Treasury securities. The real estate segment includes net leased properties, office buildings, student housing portfolios, hotels, industrial buildings, a shopping center and condominium units. Corporate/other includes certain of the Company’s investments in ventures, other asset management activities and operating expenses. The Company evaluates performance based on the following financial measures for each segment ($ in thousands): Three months ended March 31, 2023 Loans Securities Real Estate (1) Corporate/Other(2) Company Interest income $ 90,874 $ 10,129 $ 2 $ 2,791 $ 103,796 Interest expense (28,728) (2,633) (6,653) (22,735) (60,749) Net interest income (expense) 62,146 7,496 (6,651) (19,944) 43,047 (Provision for) release of loan loss reserves (4,736) — — — (4,736) Net interest income (expense) after provision for (release of) loan reserves 57,410 7,496 (6,651) (19,944) 38,311 Real estate operating income — — 23,199 — 23,199 Net result from mortgage loan receivables held for sale (194) — — — (194) Realized gain (loss) on securities — (307) — — (307) Unrealized gain (loss) on securities — 117 — — 117 Fee and other income 1,681 4 2 144 1,831 Net result from derivative transactions (1,843) (302) (97) — (2,242) Earnings (loss) from investment in unconsolidated ventures — — 217 — 217 Gain (loss) on extinguishment of debt — — — 9,217 9,217 Total other income (loss) (356) (488) 23,321 9,361 31,838 Compensation and employee benefits — — — (22,084) (22,084) Operating expenses — — — (5,256) (5,256) Real estate operating expenses — — (9,849) — (9,849) Fee expense (967) (48) (93) (412) (1,520) Depreciation and amortization — — (7,425) (104) (7,529) Total costs and expenses (967) (48) (17,367) (27,856) (46,238) Income tax (expense) benefit — — — (1,720) (1,720) Segment profit (loss) $ 56,087 $ 6,960 $ (697) $ (40,159) $ 22,191 Total assets as of March 31, 2023 $ 3,795,773 $ 520,008 $ 699,601 $ 845,144 $ 5,860,526 Three months ended March 31, 2022 Loans Securities Real Estate (1) Corporate/Other(2) Company Interest income $ 53,120 $ 3,065 $ — $ 20 $ 56,205 Interest expense (14,283) (452) (11,479) (20,821) (47,035) Net interest income (expense) 38,837 2,613 (11,479) (20,801) 9,170 (Provision for) release of loan loss reserves (874) — — (874) Net interest income (expense) after provision for (release of) loan reserves 37,963 2,613 (11,479) (20,801) 8,296 Real estate operating income — — 26,354 — 26,354 Net result from mortgage loan receivables held for sale (949) — — — (949) Realized gain (loss) on securities — (96) — — (96) Unrealized gain (loss) on securities — 17 — — 17 Realized gain on sale of real estate, net — — 29,154 — 29,154 Fee and other income 3,377 15 3,707 95 7,194 Net result from derivative transactions 2,337 804 (6) — 3,135 Earnings (loss) from investment in unconsolidated joint ventures — — 434 — 434 Total other income (loss) 4,765 740 59,643 95 65,243 Compensation and employee benefits — — — (29,864) (29,864) Operating expenses(3) 17 — — (5,525) (5,508) Real estate operating expenses — — (8,992) — (8,992) Fee expense (799) (48) (166) (975) (1,988) Depreciation and amortization — — (9,334) (8) (9,342) Total costs and expenses (782) (48) (18,492) (36,372) (55,694) Income tax (expense) benefit — — — 1,309 1,309 Segment profit (loss) $ 41,946 $ 3,305 $ 29,672 $ (55,769) $ 19,154 Total assets as of December 31, 2022 $ 3,892,382 $ 587,519 $ 706,355 $ 764,917 $ 5,951,173 (1) Includes the Company’s investment in unconsolidated ventures that held real estate of $6.3 million and $6.2 million as of March 31, 2023 and December 31, 2022, 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 FHLB stock of $9.6 million as of March 31, 2023 and December 31, 2022, and the Company’s senior unsecured notes of $1.6 billion at March 31, 2023 and December 31, 2022. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Mar. 31, 2023 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | 19. 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) | 3 Months Ended |
Mar. 31, 2023 | |
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, 2022, 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 that 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. |
Provision for Loan Losses | Provision for Loan Losses The Company uses a current expected credit loss model (“CECL”) for estimating the provision for loan losses on its loan portfolio. The CECL model requires the consideration of possible credit losses over the life of an instrument and includes a portfolio-based component and an asset-specific component. In compliance with the CECL reporting requirements, the Company supplemented its existing credit monitoring and management processes with additional processes to support the calculation of the CECL reserves. As part of that effort, the Company engages 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 the Company’s loan-level data, fair value of collateral, net operating income of collateral, selected forward-looking macroeconomic variables, and pool-level mean loss rates, produces life of loan expected losses (“EL”) at the loan and portfolio level. Where management has determined that the credit loss model does not fully capture certain external factors, including portfolio trends or loan-specific factors, a qualitative adjustment to the reserve, is recorded. In addition, interest receivable on loans is not included in the Company’s CECL calculations as the Company performs timely write off of aged accounts receivable. The Company has made a policy election to write off aged receivables through interest income as opposed to through the CECL provision on its statements of income. 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 may use the direct capitalization rate valuation methodology, the discounted cash flow 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 and take into account potential sale bids. 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. When a debtor is experiencing financial difficulties and a loan is modified, the effect of the modification will be included in the Company’s assessment of the CECL allowance for loan losses. If the Company provides principal forgiveness, the amortized cost basis of the loan is written off against the allowance for loan losses. Generally, when modifying loans, 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 the effects of modifications granted should conditions impacting the loan improve. The Company designates a loan as a non-accrual loan generally when: (i) the principal or coupon interest components of loan payments become 90-days past due; or (ii) in the opinion of the Company, it is doubtful the Company will be able to collect all principal and coupon interest due according to the contractual terms of the loan. Interest income on non-accrual loans in which the Company reasonably expects a full recovery of the loan’s outstanding principal balance is recognized when received in cash. Otherwise, income recognition will be suspended and any cash received will be applied as a reduction to the amortized cost basis. A non-accrual loan is returned to accrual status at such time as the loan becomes contractually current and future principal and coupon interest are reasonably assured to be received in accordance with the contractual loan terms. A loan will be written off when management has determined principal and coupon interest is no longer realizable and deemed non-recoverable. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In March 2022, the FASB issued ASU 2022-02 Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures, (“ASU 2022-02”). ASU 2022-02 eliminated the recognition and measurement guidance for troubled debt restructuring for creditors that have adopted ASC 326 and requires them to make enhanced disclosures about loan modifications for borrowers experiencing financial difficulty. The standard is effective for fiscal years beginning after December 15, 2022. The adoption of ASU 2022-02 did not have a material impact on the Company’s consolidated financial statements. Recent Accounting Pronouncements Pending Adoption Any new accounting standards 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) | 3 Months Ended |
Mar. 31, 2023 | |
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: First mortgage loans $ 3,766,258 $ 3,750,799 9.16 % 1.1 Mezzanine loans 43,334 43,276 11.11 % 1.5 Total mortgage loans receivable 3,809,592 3,794,075 9.18 % 1.1 Allowance for credit losses N/A (25,499) Total mortgage loan receivables held for investment, net, at amortized cost 3,809,592 3,768,576 Mortgage loan receivables held for sale: First mortgage loans 31,350 27,197 4.57 % 8.9 Total $ 3,840,942 $ 3,795,773 (4) 9.14 % 1.1 (1) Includes the impact from interest rate floors. March 31, 2023 LIBOR and SOFR rates are used to calculate weighted average yield for floating rate loans. (2) Excludes non-accrual loans of $53.6 million. Refer to “Non-Accrual Status” below for further details. (3) The remaining maturity is calculated based on the initial maturity. The weighted average extended maturity for all loans is 2.4 years. (4) Net of $15.5 million of deferred origination fees and other items as of March 31, 2023. Outstanding Carrying Weighted Remaining Mortgage loan receivables held for investment, net, at amortized cost: First mortgage loans $ 3,841,315 $ 3,819,860 8.83 % 1.3 Mezzanine loans 65,950 65,886 10.62 % 1.6 Total mortgage loans receivable 3,907,265 3,885,746 8.85 % 1.3 Allowance for credit losses N/A (20,755) Total mortgage loan receivables held for investment, net, at amortized cost 3,907,265 3,864,991 Mortgage loan receivables held for sale: First mortgage loans 31,350 27,391 4.57 % 9.2 Total $ 3,938,615 $ 3,892,382 (4) 8.82 % 1.3 (1) Includes the impact from interest rate floors. December 31, 2022 LIBOR rates are used to calculate weighted average yield for floating rate loans. (2) Excludes non-accrual loans of $53.8 million. (3) Includes the impact of one loan with a principal balance of $51.5 million, which was extended through 2026 in January 2023. (4) Net of $21.5 million of deferred origination fees and other items as of December 31, 2022. |
Summary of mortgage loan receivables by loan type | For the three months ended March 31, 2023 and 2022, the activity in our loan portfolio was as follows ($ in thousands): Mortgage loan receivables held for investment, net, at amortized cost: Mortgage loans receivable Allowance for credit losses Mortgage loan Balance, December 31, 2022 $ 3,885,746 $ (20,755) $ 27,391 Origination of mortgage loan receivables 32,616 — — Repayment of mortgage loan receivables (131,272) — — Net result from mortgage loan receivables held for sale (1) — — (194) Accretion/amortization of discount, premium and other fees 6,985 — — Release (addition) of provision for current expected credit loss, net (2) — (4,744) — Balance, March 31, 2023 $ 3,794,075 $ (25,499) $ 27,197 (1) Includes unrealized lower of cost or market adjustment and realized gain/loss on loans held for sale. (2) Refer to “Allowance for Credit Losses” table below for further detail. Mortgage loan receivables held for investment, net, at amortized cost: Mortgage loans receivable Allowance for credit losses Mortgage loan Balance, December 31, 2021 $ 3,553,737 $ (31,752) $ — Origination of mortgage loan receivables 648,507 — 54,850 Repayment of mortgage loan receivables (349,935) — — Net result from mortgage loan receivables held for sale (2) — — (949) Accretion/amortization of discount, premium and other fees 5,162 — — Release (addition) of provision for current expected credit loss, net (3) — (580) — Balance, March 31, 2022 $ 3,857,471 $ (32,332) $ 53,901 (1) Refer to Note 5 Real Estate and Related Lease Intangibles, Net for further detail on additions to real estate. (2) Represents unrealized lower of cost or market adjustment on loans held for sale. (3) Refer to “Allowance for Credit Losses” table below for further detail. |
Schedule of provision for loan losses | Allowance for Credit Losses and Non-Accrual Status ($ in thousands) Three Months Ended March 31, Allowance for Credit Losses 2023 2022 Allowance for credit losses at beginning of period $ 20,755 $ 31,752 Provision for (release of) current expected credit loss, net (1) 4,744 580 Allowance for credit losses at end of period $ 25,499 $ 32,332 (1) There were no asset specific reserves recorded for the three months ended March 31, 2023 or 2022. Non-Accrual Status March 31, 2023 December 31, 2022 Carrying value of loans on non-accrual status, net of asset-specific reserve (1)(2) $ 53,624 $ 53,809 (1) Includes one loan with an amortized cost basis of $30.5 million, for which the Company determined no asset specific reserve was necessary. (2) As of March 31, 2023 and December 31, 2022 the loans on non-accrual status were greater than 90 days past due. |
Schedule of individually impaired loans | Loan Portfolio by Geographic Region, Collateral Type and Vintage (amortized cost $ in thousands) March 31, December 31, Geographic Region 2023 2022 Northeast $ 1,163,181 $ 1,191,337 South 1,101,731 1,080,132 Southwest 650,167 675,069 Midwest 488,728 496,640 West 364,441 416,556 Subtotal mortgage loans receivable 3,768,248 3,859,734 Individually impaired loans 25,827 26,012 Total mortgage loans receivable $ 3,794,075 $ 3,885,746 Management’s method for monitoring credit is the performance of a loan. The primary credit quality indicator management utilizes to assess its current expected credit loss reserve is by viewing the Company’s mortgage loan portfolio by collateral type. The following tables summarize the amortized cost of the mortgage loan portfolio by collateral type as of March 31, 2023 and December 31, 2022, respectively ($ in thousands): Amortized Cost Basis by Origination Year as of March 31, 2023 Collateral Type 2023 2022 2021 2020 2019 and Earlier Total Multifamily $ 14,339 $ 677,833 $ 730,370 $ — $ — $ 1,422,542 Office — 78,871 672,894 — 168,387 920,152 Mixed Use — 202,526 356,226 26,500 92,005 677,257 Industrial — 37,690 96,952 — 115,275 249,917 Retail — 60,250 107,783 — 22,098 190,131 Hospitality — — 45,485 — 92,221 137,706 Manufactured Housing — 32,559 82,724 — 2,924 118,207 Other — 32,457 19,879 — — 52,336 Self-Storage — — — — — — Subtotal mortgage loans receivable 14,339 1,122,186 2,112,313 26,500 492,910 3,768,248 Individually Impaired loans — — — — 25,827 25,827 Total mortgage loans receivable (1) $ 14,339 $ 1,122,186 $ 2,112,313 $ 26,500 $ 518,737 $ 3,794,075 Amortized Cost Basis by Origination Year as of December 31, 2022 Collateral Type 2022 2021 2020 2019 2018 and Earlier Total Multifamily $ 702,125 $ 722,862 $ — $ — $ — $ 1,424,987 Office 78,754 676,431 29,650 58,684 136,512 980,031 Mixed Use 201,777 351,291 26,500 120,300 — 699,868 Industrial 37,616 96,486 — 115,545 — 249,647 Retail 60,089 107,305 — 12,953 9,126 189,473 Hospitality — 45,416 — 13,843 78,364 137,623 Manufactured Housing 32,515 82,618 — 2,921 — 118,054 Other 32,353 19,898 — 7,800 — 60,051 Self-Storage — — — — — — Subtotal mortgage loans receivable 1,145,229 2,102,307 56,150 332,046 224,002 3,859,734 Individually Impaired loans — — — — 26,012 26,012 Total mortgage loans receivable (2) $ 1,145,229 $ 2,102,307 $ 56,150 $ 332,046 $ 250,014 $ 3,885,746 (1) Not included above is $23.9 million of accrued interest receivable (2) Not included above is $23.2 million of accrued interest receivable on all loans at December 31, 2022. |
SECURITIES (Tables)
SECURITIES (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of securities which are classified as available-for-sale | The following is a summary of the Company’s securities at March 31, 2023 and December 31, 2022 ($ in thousands): March 31, 2023 Gross Unrealized Weighted Average Asset Type Outstanding Amortized Cost Basis Gains Losses (7) Carrying # of Rating (1) Coupon % Yield % Remaining CMBS $ 503,183 $ 502,710 $ 43 $ (17,563) $ 485,190 (2) 70 AAA 5.72 % 5.76 % 1.01 CMBS interest-only(3) 898,620 (3) 9,493 177 (134) 9,536 (4) 9 AAA 0.59 % 3.82 % 1.37 GNMA interest-only(5) 44,966 (3) 265 139 (19) 385 14 AAA 0.31 % 5.95 % 3.09 Agency securities 32 33 — (1) 32 1 AAA 4.00 % 2.70 % 1.42 U.S. Treasury securities 25,000 24,811 2 (41) 24,772 6 AAA N/A 4.10 % 0.29 Total debt securities 1,471,801 537,312 361 (17,758) 519,915 (6) 100 2.37 % 5.72 % 1.02 Equity securities N/A 160 — (47) 113 1 N/A N/A N/A N/A Allowance for current expected credit losses N/A — — (20) (20) Total securities $ 1,471,801 $ 537,472 $ 361 $ (17,825) $ 520,008 101 December 31, 2022 Gross Unrealized Weighted Average Asset Type Outstanding Amortized Gains Losses (7) Carrying # of Rating (1) Coupon % Yield % Remaining CMBS $ 562,839 $ 562,246 $ — $ (20,913) $ 541,333 (2) 71 AAA 5.22 % 5.32 % 1.06 CMBS interest-only(3) 1,026,195 (3) 10,498 121 (176) 10,443 (4) 10 AAA 0.41 % 3.65 % 1.45 GNMA interest-only(5) 45,369 (3) 285 17 (21) 281 14 AAA 0.31 % 4.23 % 3.30 Agency securities 36 36 — (1) 35 1 AAA 4.00 % 2.70 % 1.54 U.S. Treasury securities 36,000 35,374 6 (52) 35,328 10 AAA N/A 4.17 % 0.60 Total debt securities $ 1,670,439 $ 608,439 $ 144 $ (21,163) $ 587,420 (6) 106 2.06 % 5.29 % 1.07 Equity securities N/A 160 — (41) 119 1 N/A N/A N/A N/A Allowance for current expected credit losses N/A — — (20) (20) Total real estate securities $ 1,670,439 $ 608,599 $ 144 $ (21,224) $ 587,519 107 (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. The ratings provided were determined by third-party rating agencies. The rates may not be current and are subject to change (including the assignment of a “negative outlook” or “credit watch”) at any time. (2) As of March 31, 2023 and December 31, 2022, includes $9.0 million of restricted securities which are designated as risk retention securities under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, as amended (“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. (3) The amounts presented represent the principal amount of the mortgage loans outstanding in the pool in which the interest-only securities participate. (4) As of March 31, 2023 and December 31, 2022, includes $0.4 million of restricted securities which are designated as risk retention securities under the Dodd-Frank Act and are therefore subject to transfer restrictions over the term of the securitization trust and are classified as held-to-maturity and reported at amortized cost. (5) GNMA interest-only securities are recorded at fair value with changes in fair value recorded in current period earnings. The Company’s GNMA interest-only securities are considered to be hybrid financial instruments that contain embedded derivatives. As a result, the Company has elected to account for them as hybrid instruments in their entirety at fair value with changes in fair value recognized in unrealized gain (loss) on securities in the consolidated statements of income. (6) The Company’s investments in debt securities represents an ownership interest in unconsolidated VIEs. The Company’s maximum exposure to loss from these unconsolidated VIEs is the amortized cost basis of the securities which represents the purchase price of the investment adjusted by any unamortized premiums or discounts as of the reporting date. |
Schedule of fair value of the Company's securities by remaining maturity based upon expected cash flows | The following summarizes the carrying value of the Company’s debt securities by remaining maturity based upon expected cash flows at March 31, 2023 and December 31, 2022 ($ in thousands): March 31, 2023 Asset Type Within 1 year 1-5 years 5-10 years After 10 years Total CMBS $ 304,060 $ 181,131 $ — $ — $ 485,191 CMBS interest-only 2,365 7,172 — — 9,537 GNMA interest-only 36 210 138 — 384 Agency securities — 31 — — 31 U.S. Treasury securities 24,772 — — — 24,772 Allowance for current expected credit losses — — — — (20) Total securities (1) $ 331,233 $ 188,544 $ 138 $ — $ 519,895 (1) Excluded from the table above are $0.1 million of equity securities. December 31, 2022 Asset Type Within 1 year 1-5 years 5-10 years After 10 years Total CMBS $ 346,272 $ 195,061 $ — $ — $ 541,333 CMBS interest-only 937 9,506 — — 10,443 GNMA interest-only 40 111 130 — 281 Agency securities — 35 — — 35 U.S. Treasury securities 32,451 2,877 — — 35,328 Allowance for current expected credit losses — — — — (20) Total securities (1) $ 379,700 $ 207,590 $ 130 $ — $ 587,400 (1) Excluded from the table above are $0.1 million of equity securities. |
REAL ESTATE AND RELATED LEASE_2
REAL ESTATE AND RELATED LEASE INTANGIBLES, NET (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Real Estate [Abstract] | |
Schedule of real estate properties by category | The Company’s real estate assets were comprised of the following ($ in thousands): March 31, 2023 December 31, 2022 Land $ 158,802 $ 158,802 Building 626,280 625,655 In-place leases and other intangibles 114,689 114,687 Undepreciated real estate and related lease intangibles 899,771 899,144 Less: Accumulated depreciation and amortization (206,505) (199,008) Real estate and related lease intangibles, net(2) $ 693,266 $ 700,136 Below market lease intangibles, net (other liabilities)(1) $ (30,369) $ (30,892) (1) Below market lease intangibles is net of $14.2 million and $13.6 million of accumulated amortization as of March 31, 2023 and December 31, 2022, respectively. |
Schedule of depreciation and amortization expense recorded | The following table presents depreciation and amortization expense on real estate recorded by the Company ($ in thousands): Three Months Ended March 31, 2023 2022 Depreciation expense(1) $ 6,200 $ 7,088 Amortization expense 1,329 2,254 Total real estate depreciation and amortization expense $ 7,529 $ 9,342 (1) Depreciation expense on the consolidated statements of income also includes $0.1 million and $8 thousand of depreciation on corporate fixed assets for the three months ended March 31, 2023 and March 31, 2022, respectively. |
Schedule of lease intangible assets | The Company’s intangible assets are comprised of in-place leases, above market leases and other intangibles. The following tables present additional detail related to our intangible assets ($ in thousands): March 31, 2023 December 31, 2022 Gross intangible assets(1) $ 114,689 $ 114,687 Accumulated amortization 51,125 49,725 Net intangible assets $ 63,564 $ 64,962 (1) Includes $2.8 million of unamortized above market lease intangibles, which are included in real estate and related lease intangibles, net on the consolidated balance sheets as of March 31, 2023 and December 31, 2022. The following table presents increases/reductions in operating lease income related to the amortization of above or below market leases recorded by the Company ($ in thousands): Three Months Ended March 31, 2023 2022 Reduction in operating lease income for amortization of above market lease intangibles acquired $ (72) $ (76) Increase in operating lease income for amortization of below market lease intangibles acquired 526 520 Total $ 454 $ 444 |
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 March 31, 2023 ($ in thousands): Period Ending December 31, Increase/(Decrease) to Operating Lease Income Amortization Expense 2023 $ 730 $ 3,398 2024 973 4,531 2025 973 4,391 2026 976 3,740 2027 976 3,554 Thereafter 22,968 41,179 Total $ 27,596 $ 60,793 |
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 March 31, 2023 ($ in thousands): Period Ending December 31, Amount 2023 $ 40,682 2024 49,994 2025 49,801 2026 48,424 2027 46,267 Thereafter 196,855 Total $ 432,023 |
Schedule of real estate properties acquired | uring the three months ended March 31, 2022 ($ in thousands): Acquisition Date Type Primary Location(s) Purchase Price/Fair Value on the Date of Foreclosure Ownership Interest (1) February 2022 (2) Apartments New York, NY $ 15,436 100.0% Total real estate acquisitions $ 15,436 (1) Properties were consolidated as of acquisition date. (2) In February 2022, the Company acquired, via change in control, a previously held interest in a non-controlling equity investment in a mixed use property with one remaining residential condo unit and one remaining retail condo unit in New York, New York. The carrying value of the property at the time of change in control was $15.4 million, which was determined to be fair value. The fair value of the remaining condo unit was determined based on comparable sales in the building and the value of the remaining retail unit was valued utilizing a direct capitalization rate of 5.5%. The key inputs used to determine fair value were determined to be Level 3 inputs. |
Schedule of properties sold | The Company did not have any sales during the three months ended March 31, 2023 and sold the following properties during the three months ended March 31, 2022 ($ in thousands): Sales Date Type Primary Location(s) Net Sales Proceeds Net Book Value Realized Gain/(Loss) Properties March 2022 Office Ewing, NJ $ 38,652 $ 24,134 $ 14,518 1 March 2022 Warehouse Conyers, GA 40,752 26,116 14,636 1 Totals (1) $ 79,404 $ 50,250 $ 29,154 (1) Includes $3.7 million of defeasance costs upon repayment of the mortgage financing in connection with the sales that is recorded within interest expense on the consolidated statement of income, such amount was correspondingly paid by the buyer and received by the Company as part of the sale and recorded in fee and other income on the consolidated statement of income. |
DEBT OBLIGATIONS, NET (Tables)
DEBT OBLIGATIONS, NET (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of debt obligations | The details of the Company’s debt obligations at March 31, 2023 and December 31, 2022 are as follows ($ in thousands): March 31, 2023 Debt Obligations Committed / Carrying Value of Debt Obligations Committed but Unfunded Interest Rate at March 31, 2023(1) Current Term Maturity Remaining Extension Options Eligible Collateral Carrying Amount of Collateral Fair Value of Collateral Committed Loan Repurchase Facility $ 500,000 $ 318,983 $ 181,017 6.54% — 7.04% 9/27/2025 (2) (3) $ 431,809 $ 431,395 Committed Loan Repurchase Facility 300,000 206,867 93,133 6.54% — 7.85% 12/19/2023 (4) (5) 306,449 303,632 Committed Loan Repurchase Facility 100,000 47,415 52,585 6.55% — 6.55% 4/30/2024 (6) (3) 64,263 64,263 Committed Loan Repurchase Facility 100,000 77,959 22,041 6.06% — 6.56% 1/2/2024 (7) (3) 103,560 103,560 Committed Loan Repurchase Facility 100,000 — 100,000 —% —% 1/22/2024 (8) (5) — — Committed Loan Repurchase Facility 100,000 — 100,000 —% — —% 7/14/2023 (9) (10) — — Total Committed Loan Repurchase Facilities 1,200,000 651,224 548,776 906,081 902,850 Committed Securities Repurchase Facility 100,000 8,032 91,968 5.46% — 5.71% 5/27/2024 N/A (11) 9,150 9,150 Uncommitted Securities Repurchase Facility N/A (12) 110,011 N/A (12) 5.32% — 6.68% 4/27/2023 N/A (11) 121,387 121,387 (13) Total Repurchase Facilities 1,300,000 769,267 640,744 1,036,618 1,033,387 Revolving Credit Facility 323,850 — 323,850 —% — —% 7/27/2023 (14) N/A (15) N/A (15) N/A (15) Mortgage Loan Financing 469,385 469,690 — 4.25% — 8.53% 2024-2031 N/A (17) 523,041 667,818 (18) CLO Debt 1,064,365 1,059,593 (19) — 5.88% — 8.33% 2024-2026 N/A (3) 1,331,079 1,331,079 Borrowings from the FHLB 213,000 213,000 — 2.74% — 5.18% 2023-2024 N/A (21) 250,747 250,747 (22) Senior Unsecured Notes 1,585,063 1,570,878 (23) — 4.25% — 5.25% 2025-2029 N/A N/A (24) N/A (24) N/A (24) Total Debt Obligations, Net $ 4,955,663 $ 4,082,428 $ 964,594 $ 3,141,485 $ 3,283,031 (1) LIBOR and Term SOFR rates in effect as of March 31, 2023 are used to calculate interest rates for floating rate debt, as applicable. (2) Two 12-month extension periods at Company’s option. No new advances are permitted after the initial maturity date. (3) First mortgage commercial real estate loans and senior and pari passu interests therein. It does not include the real estate collateralizing such loans. (4) Two additional 364-day periods at Company’s option. (5) 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. (6) Three additional 12-month extension periods at Company’s option. (7) One additional 12-month extension periods at Company’s option. No new advances are permitted. (8) Two additional 12-month extension periods at Company's option. No new advances permitted during the final 12-month period. (9) 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. (10) First mortgage, junior and mezzanine commercial real estate loans, and certain senior and/or pari passu interests therein. (11) Commercial real estate securities. It does not include the first mortgage commercial real estate loans collateralizing such securities. (12) Represents uncommitted securities repurchase facilities for which there is no committed amount subject to future advances. (13) Includes $1.9 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. (14) Four additional 12-month periods at Company’s option. (15) 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. (16) Anticipated repayment dates. (17) Certain of our real estate investments serve as collateral for our mortgage loan financing. (18) Using undepreciated carrying value of commercial real estate to approximate fair value. (19) Presented net of unamortized debt issuance costs of $4.8 million at March 31, 2023. (20) Represents the estimated maturity date based on the remaining reinvestment period and underlying loan maturities. (21) Investment grade commercial real estate securities and U.S. Treasury securities. It does not include the first mortgage commercial real estate loans collateralizing such securities. (22) Includes $6.6 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 $14.2 million at March 31, 2023. (24) The obligations under the senior unsecured notes are guaranteed by the Company and certain of its subsidiaries. December 31, 2022 Debt Obligations Committed / Carrying Value of Debt Obligations Committed but Unfunded Interest Rate at December 31, 2021(1) Current Term Maturity Remaining Extension Options Eligible Collateral Carrying Amount of Collateral Fair Value of Collateral Committed Loan Repurchase Facility(2) $ 500,000 $ 318,983 $ 181,017 6.07% — 6.57% 9/27/2025 (2) (3) $ 428,477 $ 429,276 Committed Loan Repurchase Facility 100,000 — 100,000 —% — —% 2/26/2023 (4) (5) — — Committed Loan Repurchase Facility 300,000 157,558 142,442 6.19% — 7.07% 12/19/2023 (6) (7) 244,102 244,102 Committed Loan Repurchase Facility 100,000 47,415 52,585 6% — 6% 4/30/2024 (8) (3) 63,307 63,307 Committed Loan Repurchase Facility 100,000 77,959 22,041 5.74% — 6.24% 1/3/2023 (2) (3) 103,393 103,393 Committed Loan Repurchase Facility 100,000 — 100,000 —% —% 1/22/2024 (9) (7) — — Committed Loan Repurchase Facility 100,000 14,979 85,021 7.07% — 7.07% 7/14/2023 (10) (11) 21,206 21,206 Total Committed Loan Repurchase Facilities 1,300,000 616,894 683,106 860,485 861,284 Committed Securities Repurchase Facility(2) 100,000 8,640 91,360 5.04% — 5.29% 5/27/2023 N/A (12) 10,023 10,023 Uncommitted Securities Repurchase Facility N/A (13) 222,328 N/A (13) 4.73% — 6% 3/2/2023 N/A (12) 247,351 247,351 (14) Total Repurchase Facilities 1,400,000 847,862 774,466 1,117,859 1,118,658 Revolving Credit Facility 323,850 — 323,850 —% — —% 7/27/2023 (15) N/A (16) N/A (16) N/A (16) Mortgage Loan Financing 497,454 497,991 — 4.25% — 8.03% 2023 - 2031(17) N/A (18) 559,885 710,977 (19) CLO Debt 1,064,365 1,058,462 (20) — 5.52% — 7.97% 2024 - 2026(21) N/A (3) 1,308,654 1,308,654 Borrowings from the FHLB 213,000 213,000 — 2.74% — 4.70% 2023 - 2024 N/A (22) 248,806 248,806 (23) Senior Unsecured Notes 1,643,794 1,628,382 (24) — 4.25% — 5.25% 2025 - 2029 N/A N/A (25) N/A (25) N/A (25) Total Debt Obligations, Net $ 5,142,463 $ 4,245,697 $ 1,098,316 $ 3,235,204 $ 3,387,095 (1) LIBOR and Term SOFR rates in effect as of December 31, 2022 are used to calculate interest rates for floating rate debt, as applicable. (2) Two 12-month extension 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) Two additional 364-day periods at Company’s option. (7) First mortgage and mezzanine commercial real estate loans and senior and pari passu interests therein. It does not include the real estate collateralizing such loans. (8) Three additional 12-month extension periods at Company’s option. (9) Two additional 12-month extension periods at Company's option. No new advances are permitted during the final 12-month period. (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 first mortgage commercial real estate loans collateralizing such securities. (13) Represents uncommitted securities repurchase facilities for which there is no committed amount subject to future advances. (14) Includes $2.0 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) Presented net of unamortized debt issuance costs of $5.9 million at December 31, 2022. (21) Represents the estimated maturity date based on the remaining reinvestment period and underlying loan maturities. (22) Investment grade commercial real estate securities. It does not include the first mortgage commercial real estate loans collateralizing such securities. (23) Includes $6.6 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. (24) Presented net of unamortized debt issuance costs of $15.4 million at December 31, 2022. (25) The obligations under the senior unsecured notes are guaranteed by the Company and certain of its subsidiaries. |
Schedule of contractual payments under all borrowings by maturity | The following schedule reflects the Company’s contractual payments under all borrowings by maturity ($ in thousands): Period ending December 31, Borrowings by 2023 $ 170,361 2024 603,270 2025 651,924 2026 89,161 2027 808,995 Thereafter 712,740 Subtotal 3,036,451 Debt issuance costs included in senior unsecured notes (14,185) Debt issuance costs included in mortgage loan financings (1,701) Premiums included in mortgage loan financings(2) 2,270 Total (3) $ 3,022,835 (1) The allocation of repayments under our committed loan repurchase facilities is based on the earlier of: (i) the maturity date of each agreement; or (ii) the maximum maturity date of the collateral loans, assuming all extension options are exercised by the borrower. (2) Represents deferred gains on intercompany mortgage loans, secured by our own real estate, sold into securitizations. These premiums are amortized as a reduction to interest expense. |
DERIVATIVE INSTRUMENTS (Tables)
DERIVATIVE INSTRUMENTS (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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 March 31, 2023 and December 31, 2022 ($ in thousands): March 31, 2023 Fair Value Remaining Contract Type Notional Asset(1) Liability(1) Caps 1 Month Term SOFR $ 808 $ 1,470 $ — 1.38 Futures 5-year Treasury-Note Futures 44,200 $ — $ 20 0.25 10-year Treasury-Note Futures 61,400 — 29 0.25 Total futures 105,600 — 49 Total derivatives $ 106,408 $ 1,470 $ 49 (1) Shown as derivative instruments in the accompanying consolidated balance sheets. December 31, 2022 Fair Value Remaining Contract Type Notional Asset(1) Liability(1) Caps 1 Month Term SOFR $ 90,000 $ 1,804 $ — 1.68 Futures 5-year Treasury-Note Futures 44,200 51 — 0.25 10-year Treasury-Note Futures 61,400 71 — 0.25 Total futures 105,600 122 — Options Options 9,100 112 — 0.20 Total derivatives $ 204,700 $ 2,038 $ — (1) Shown as derivative instruments 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 income for the three months ended March 31, 2023 and 2022 ($ in thousands): Three Months Ended March 31, 2023 Contract Type Unrealized Realized Net Result Caps $ (334) $ 237 $ (97) Futures (171) (1,861) (2,032) Options 131 (244) (113) Total $ (374) $ (1,868) $ (2,242) Three Months Ended March 31, 2022 Contract Type Unrealized Realized Net Result Caps $ (6) $ — $ (6) Futures (162) 3,303 3,141 Total $ (168) $ 3,303 $ 3,135 |
OFFSETTING ASSETS AND LIABILI_2
OFFSETTING ASSETS AND LIABILITIES (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Offsetting [Abstract] | |
Schedule of offsetting of financial assets | The following table represents offsetting of financial assets and derivative assets as of March 31, 2023 ($ in thousands): Description Gross amounts of Gross amounts Net amounts of Gross amounts not offset in the Net amount Financial Cash collateral Derivatives $ 1,421 $ — $ 1,421 $ — $ (2,655) $ (1,234) Total $ 1,421 $ — $ 1,421 $ — $ (2,655) $ (1,234) (1) Included in restricted cash on consolidated balance sheets. The following table represents offsetting of financial assets and derivative assets as of December 31, 2022 ($ in thousands): Description Gross amounts of Gross amounts Net amounts of Gross amounts not offset in the Net amount Financial Cash collateral Derivatives $ 2,038 $ — $ 2,038 $ — $ (2,505) $ (467) Total $ 2,038 $ — $ 2,038 $ — $ (2,505) $ (467) (1) Included in restricted cash on consolidated balance sheets. |
Schedule of offsetting of financial liabilities | The following table represents offsetting of financial liabilities and derivative liabilities as of March 31, 2023 ($ in thousands): Description Gross amounts of Gross amounts Net amounts of Gross amounts not offset in the Net amount Financial Cash collateral Repurchase agreements $ 769,266 $ — $ 769,266 $ 769,266 $ 3,333 $ 765,933 Total $ 769,266 $ — $ 769,266 $ 769,266 $ 3,333 $ 765,933 (1) Included in restricted cash on consolidated balance sheets. The following table represents offsetting of financial liabilities and derivative liabilities as of December 31, 2022 ($ in thousands): Description Gross amounts of Gross amounts Net amounts of Gross amounts not offset in the Net amount Financial Cash collateral Repurchase agreements $ 847,863 $ — $ 847,863 $ 847,863 $ 19,128 $ 828,735 Total $ 847,863 $ — $ 847,863 $ 847,863 $ 19,128 $ 828,735 (1) Included in restricted cash on consolidated balance sheets. |
CONSOLIDATED VARIABLE INTERES_2
CONSOLIDATED VARIABLE INTEREST ENTITIES (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Variable Interest Entities | The Company consolidates on its balance sheet two CLOs that are considered VIEs as of March 31, 2023 and December 31, 2022 ($ in thousands): March 31, 2023 December 31, 2022 Restricted cash $ 1,170 $ 4,902 Mortgage loan receivables held for investment, net, at amortized cost 1,331,079 1,308,654 Accrued interest receivable 8,817 8,313 Other assets 4 17,505 Total assets $ 1,341,070 $ 1,339,374 Debt obligations, net $ 1,059,593 $ 1,058,462 Accrued expenses 3,213 3,029 Other liabilities 65 65 Total liabilities 1,062,871 1,061,556 Net equity in VIEs (eliminated in consolidation) 278,199 277,818 Total equity 278,199 277,818 Total liabilities and equity $ 1,341,070 $ 1,339,374 |
EQUITY STRUCTURE AND ACCOUNTS (
EQUITY STRUCTURE AND ACCOUNTS (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Common stock repurchase activity | The following tables summarize the Company’s repurchase activity of its Class A common stock during the three months ended March 31, 2023 and 2022 ($ in thousands): Shares Amount(1) Authorizations remaining as of December 31, 2022 $ 46,737 Repurchases paid 250,000 (2,285) Authorizations remaining as of March 31, 2023 $ 44,452 (1) Amount excludes commissions paid associated with share repurchases. Shares Amount(1) Authorizations remaining as of December 31, 2021 $ 38,102 Repurchases paid 20,000 (214) Authorizations remaining as of March 31, 2022 $ 37,888 (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 three months ended March 31, 2023 and 2022: Declaration Date Dividend per Share March 15, 2023 $ 0.23 Total $ 0.23 March 15, 2022 $ 0.20 Total $ 0.20 |
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 three months ended March 31, 2023 and 2022 ($ in thousands): Accumulated Other Comprehensive Income (Loss) December 31, 2022 $ (21,009) Other comprehensive income (loss) 3,485 March 31, 2023 $ (17,524) Accumulated Other Comprehensive Income (Loss) December 31, 2021 $ (4,112) Other comprehensive income (loss) (6,641) March 31, 2022 $ (10,753) |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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 months ended March 31, 2023 and 2022 consist of the following: Three Months Ended March 31, ($ in thousands except share amounts) 2023 2022 Basic and Diluted Net income (loss) available for Class A common shareholders $ 22,408 $ 19,032 Weighted average shares outstanding: Basic 124,493,132 124,305,943 Diluted 124,656,102 125,478,001 |
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 months ended March 31, 2023 and 2022 consist of the following: Three Months Ended March 31, (In thousands except share and per share amounts) (1) 2023 2022 Basic Net Income (Loss) Per Share of Class A Common Stock Numerator : Net income (loss) attributable to Class A common shareholders $ 22,408 $ 19,032 Denominator : Weighted average number of shares of Class A common stock outstanding 124,493,132 124,305,943 Basic net income (loss) per share of Class A common stock $ 0.18 $ 0.15 Diluted Net Income (Loss) Per Share of Class A Common Stock Numerator: Net income (loss) attributable to Class A common shareholders $ 22,408 $ 19,032 Diluted net income (loss) attributable to Class A common shareholders 22,408 19,032 Denominator: Basic weighted average number of shares of Class A common stock outstanding 124,493,132 124,305,943 Add - dilutive effect of: Incremental shares of unvested Class A restricted stock(1) 162,970 1,172,058 Diluted weighted average number of shares of Class A common stock outstanding (2) 124,656,102 125,478,001 Diluted net income (loss) per share of Class A common stock $ 0.18 $ 0.15 (1) The Company is using the treasury stock method. (2) There were 390,313 anti-dilutive shares as of March 31, 2023. |
STOCK BASED AND OTHER COMPENS_2
STOCK BASED AND OTHER COMPENSATION PLANS (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock based compensation plans summary | The following table summarizes the impact on the consolidated statements of income of the various stock-based compensation plans and other compensation plans ($ in thousands): Three Months Ended March 31, 2023 2022 Stock-based compensation expense $ 9,124 $ 20,412 Total Stock Based Compensation Expense(1) $ 9,124 $ 20,412 (1) Variance between the three months ended March 31, 2023 and March 31, 2022 is primarily due to timing of the 2022 and 2021 grants of employee stock-based compensation. |
Summary of the grants | A summary of the grants is presented below: Three Months Ended March 31, 2023 2022 Number Weighted Number Weighted Grants - Class A Common Stock 1,417,561 $ 11.58 2,843,340 $ 11.89 |
Schedule of nonvested shares activity | The table below presents the number of unvested shares of Class A common stock and outstanding stock options at March 31, 2023 and changes during 2023 of the Class A common stock and stock options of Ladder Capital Corp granted under the 2014 Omnibus Incentive Plan: Restricted Stock Weighted Average Grant Date Fair Value Stock Options Nonvested/Outstanding at December 31, 2022 2,529,571 $ 12.62 623,788 Granted 1,417,561 11.58 — Vested (1,697,350) 12.14 — Forfeited (32,446) 10.32 — Nonvested/Outstanding at March 31, 2023 2,217,336 $ 12.36 623,788 Exercisable at March 31, 2023 (1) 623,788 (1) The weighted average exercise price of outstanding options is $14.84 at March 31, 2023. |
FAIR VALUE OF FINANCIAL INSTR_2
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Summary of fair value | The carrying values and estimated fair values of the Company’s financial instruments, which are both reported at fair value on a recurring basis (as indicated) or amortized cost/par, at March 31, 2023 and December 31, 2022 are as follows ($ in thousands): March 31, 2023 Weighted Average Principal Amount Amortized Cost Basis/Purchase Price Fair Value Fair Value Method Yield Remaining Assets: CMBS(1) $ 503,183 $ 502,710 $ 485,191 Internal model, third-party inputs 5.76 % 1.01 CMBS interest-only(1) 898,620 (2) 9,493 9,537 Internal model, third-party inputs 3.82 % 1.37 GNMA interest-only(3) 44,966 (2) 265 385 Internal model, third-party inputs 5.95 % 3.09 Agency securities(1) 32 33 31 Internal model, third-party inputs 2.70 % 1.42 U.S. Treasury securities(1) 25,000 24,772 24,772 Internal model, third-party inputs 4.10 % 0.29 Equity securities(3) N/A 160 113 Observable market prices N/A N/A Mortgage loan receivables held for investment, net, at amortized cost(4) 3,809,591 3,794,075 3,306,791 Discounted Cash Flow(5) 9.18 % 1.07 Mortgage loan receivables held for sale 31,350 27,197 27,197 Internal model, third-party inputs(6) 4.57 % 8.94 FHLB stock(7) 9,585 9,585 9,585 (7) 4.75 % N/A Nonhedge derivatives(1)(10) 106,408 1,421 1,421 Counterparty quotations N/A 1.42 Liabilities: Repurchase agreements - short-term 402,869 402,869 402,869 Cost plus Accrued Interest (8) 5.76 % 0.53 Repurchase agreements - long-term 366,398 366,398 366,398 Discounted Cash Flow(9) 5.77 % 2.31 Mortgage loan financing 469,121 469,690 453,300 Discounted Cash Flow 5.68 % 3.31 CLO debt 1,064,365 1,059,593 1,059,593 Discounted Cash Flow(9) 7.00 % 15.68 Borrowings from the FHLB 213,000 213,000 212,911 Discounted Cash Flow 1.21 % 1.00 Senior unsecured notes 1,585,063 1,570,878 1,244,020 Internal model, third-party inputs 4.66 % 4.53 (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) Balance does not include impact of allowance for current expected credit losses of $25.5 million at March 31, 2023. (5) 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. (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) For repurchase agreements - short term, the value approximates the cost plus accrued interest. (9) For repurchase agreements - long term 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. (10) The outstanding face amount of the nonhedge derivatives represents the notional amount of the underlying contracts. December 31, 2022 Weighted Average Principal Amount Amortized Cost Basis/Purchase Price Fair Value Fair Value Method Yield Remaining Assets: CMBS(1) $ 562,839 $ 562,246 $ 541,333 Internal model, third-party inputs 5.32 % 1.06 CMBS interest-only(1) 1,026,195 (2) 10,498 10,443 Internal model, third-party inputs 3.65 % 1.45 GNMA interest-only(3) 45,369 (2) 285 281 Internal model, third-party inputs 4.23 % 3.30 Agency securities(1) 36 36 35 Internal model, third-party inputs 2.70 % 1.54 U.S. Treasury securities(1) 36,000 35,328 35,328 Internal model, third-party inputs 4.17 % 0.60 Equity securities(3) N/A 160 118 Observable market prices N/A N/A Mortgage loan receivables held for investment, net, at amortized cost(4) 3,907,295 3,885,746 3,875,708 Discounted Cash Flow(5) 8.85 % 1.26 Mortgage loan receivables held for sale 31,350 27,391 27,391 Internal model, third-party inputs(6) 4.57 % 9.19 FHLB stock(7) 9,585 9,585 9,585 (7) 4.75 % N/A Nonhedge derivatives(1)(10) 204,700 2,038 2,038 Counterparty quotations N/A 1.52 Liabilities: Repurchase agreements - short-term 481,465 481,465 481,465 Cost plus Accrued Interest (8) 4.04 % 0.37 Repurchase agreements - long-term 366,398 366,398 366,398 Discounted Cash Flow(9) 4.06 % 2.56 Mortgage loan financing 497,454 497,991 477,101 Discounted Cash Flow 5.51 % 3.36 CLO debt 1,064,365 1,058,462 1,058,462 Discounted Cash Flow(9) 6.35 % 15.92 Borrowings from the FHLB 213,000 213,000 213,055 Discounted Cash Flow 1.61 % 1.25 Senior unsecured notes 1,643,794 1,628,382 1,397,977 Internal model, third-party inputs 4.66 % 4.75 (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) Balance does not include impact of allowance for current expected credit losses of $20.8 million at December 31, 2022. (5) 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. (6) 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. (7) The outstanding face amount of the nonhedge derivatives represents the notional amount of the underlying contracts. (8) 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. (9) For repurchase agreements - long term 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. (10) The outstanding face amount of the nonhedge derivatives represents the notional amount of the underlying contracts. |
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 March 31, 2023 and December 31, 2022 ($ in thousands): March 31, 2023 Financial Instruments Reported at Fair Value on Consolidated Statements of Financial Condition Principal Fair Value Level 1 Level 2 Level 3 Total Assets: CMBS(1) $ 493,802 $ — $ — $ 476,181 $ 476,181 CMBS interest-only(1) 890,193 (2) — — 9,150 9,150 GNMA interest-only(3) 44,966 (2) — — 385 385 Agency securities(1) 32 — — 31 31 U.S. Treasury securities 25,000 24,772 — — 24,772 Equity securities N/A 113 — — 113 Nonhedge derivatives(4) 106,408 — 1,421 — 1,421 $ 24,885 $ 1,421 $ 485,747 $ 512,053 Financial Instruments Not Reported at Fair Value on Consolidated Statements of Financial Condition Principal Fair Value Level 1 Level 2 Level 3 Total Assets: Mortgage loan receivable held for investment, net, at amortized cost: Mortgage loan receivables held for investment, net, at amortized cost(5) $ 3,809,591 $ — $ — $ 3,306,791 $ 3,306,791 Mortgage loan receivable held for sale(6) 31,350 — — 27,197 27,197 CMBS(7) 9,381 — — 9,009 9,009 CMBS interest-only(7) 8,426 — — 387 387 FHLB stock 9,585 — — 9,585 9,585 $ — $ — $ 3,352,969 $ 3,352,969 Liabilities: Repurchase agreements - short-term $ 402,869 $ — $ — $ 402,869 $ 402,869 Repurchase agreements - long-term 366,398 — — 366,398 366,398 Mortgage loan financing 469,121 — — 453,300 453,300 CLO debt 1,064,365 — — 1,059,593 1,059,593 Borrowings from the FHLB 213,000 — — 212,911 212,911 Senior unsecured notes 1,585,063 — — 1,244,020 1,244,020 $ — $ — $ 3,739,091 $ 3,739,091 (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) Balance does not include impact of allowance for current expected credit losses of $25.5 million at March 31, 2023. (6) A lower of cost or market adjustment was recorded as of March 31, 2023. (7) 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, are classified as held-to-maturity and reported at amortized cost. December 31, 2022 Financial Instruments Reported at Fair Value on Consolidated Statements of Financial Condition Principal Fair Value Level 1 Level 2 Level 3 Total Assets: CMBS(1) $ 553,424 $ — $ — $ 532,304 $ 532,304 CMBS interest-only(1) 1,017,735 (2) — — 10,026 10,026 GNMA interest-only(3) 45,369 (2) — — 281 281 Agency securities(1) 36 — — 35 35 Equity securities N/A 118 — — 118 U.S. Treasury securities 36,000 35,328 — — 35,328 Nonhedge derivatives(4) 204,700 — 2,038 — 2,038 $ 35,446 $ 2,038 $ 542,646 $ 580,130 Financial Instruments Not Reported at Fair Value on Consolidated Statements of Financial Condition Principal Fair Value Level 1 Level 2 Level 3 Total Assets: Mortgage loan receivable held for investment, net, at amortized cost: Mortgage loan receivables held for investment, net, at amortized cost(5) $ 3,907,295 $ — $ — $ 3,875,708 $ 3,875,708 Mortgage loan receivable held for sale(6) 31,350 — — 27,391 27,391 CMBS(7) 9,415 — — 9,030 9,030 CMBS interest-only(7) 8,460 — — 417 417 FHLB stock 9,585 — — 9,585 9,585 $ — $ — $ 3,922,131 $ 3,922,131 Liabilities: Repurchase agreements - short-term $ 481,465 $ — $ — $ 481,465 $ 481,465 Repurchase agreements - long-term 366,398 — — 366,398 366,398 Mortgage loan financing 497,454 — — 477,101 477,101 CLO debt 1,064,365 — — 1,058,462 1,058,462 Borrowings from the FHLB 213,000 — — 213,055 213,055 Senior unsecured notes 1,643,794 — — 1,397,977 1,397,977 $ — $ — $ 3,994,458 $ 3,994,458 (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) Balance does not include impact of allowance for current expected credit losses of $20.8 million at December 31, 2021. (6) A lower of cost or market adjustment was recorded as of December 31, 2022. |
Schedule of changes in Level 3 of financial instruments | The following table summarizes changes in Level 3 financial instruments reported at fair value on the consolidated statements of financial condition for the three months ended March 31, 2023 and 2022 ($ in thousands): Three Months Ended March 31, Level 3 2023 2022 Balance at January 1, $ 542,646 $ 692,864 Transfer from level 2 — — Purchases 546 29,603 Sales (10,689) (4,261) Paydowns/maturities (49,180) (57,489) Amortization of premium/discount (880) (1,326) Unrealized gain/(loss) 3,616 (6,638) Realized gain/(loss) on sale (312) (103) Balance at March 31, $ 485,747 $ 652,650 |
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): March 31, 2023 Financial Instrument Carrying Value Valuation Technique Unobservable Input Minimum Weighted Average Maximum CMBS(1) $ 476,181 Discounted cash flow Yield (4) 2.88 % 5.67 % 17.69 % CMBS interest-only(1) 9,150 (2) Discounted cash flow Yield (4) 2.56 % 2.85 % 22.62 % GNMA interest-only(3) 385 (2) Discounted cash flow Yield (4) 1.28 % 5.95 % 10.00 % Agency securities(1) 31 Discounted cash flow Yield (4) 2.70 % 2.70 % 2.70 % Total $ 485,747 December 31, 2022 Financial Instrument Carrying Value Valuation Technique Unobservable Input Minimum Weighted Average Maximum CMBS(1) $ 532,304 Discounted cash flow Yield (4) 2.89 % 5.29 % 17.47 % CMBS interest-only(1) 10,026 (2) Discounted cash flow Yield (4) 1.39 % 3.72 % 19.66 % GNMA interest-only(3) 281 (2) Discounted cash flow Yield (4) 1.28 % 5.50 % 10.00 % Agency securities(1) 35 Discounted cash flow Yield (4) 2.70 % 2.70 % 2.70 % Total $ 542,646 (1) CMBS, CMBS interest-only securities, Agency securities, GNMA permanent securities, U.S. Treasury 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) GNMA 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. |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of future minimum lease obligations under non-cancelable operating leases | Future minimum lease payments under non-cancelable operating leases as of March 31, 2023 are as follows ($ in thousands): 2023 (last 9 months) $ 788 2024 2,171 2025 2,207 2026 2,219 2027 2,232 Thereafter 13,344 Total undiscounted cash flows 22,961 Present value discount (1) (6,728) Lease liabilities $ 16,233 (1) Lease liabilities were discounted at the Company's weighted average incremental borrowing rate for similar collateral, which is estimated to be 6.62%, and the remaining lease term is 10.3 years. |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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): Three months ended March 31, 2023 Loans Securities Real Estate (1) Corporate/Other(2) Company Interest income $ 90,874 $ 10,129 $ 2 $ 2,791 $ 103,796 Interest expense (28,728) (2,633) (6,653) (22,735) (60,749) Net interest income (expense) 62,146 7,496 (6,651) (19,944) 43,047 (Provision for) release of loan loss reserves (4,736) — — — (4,736) Net interest income (expense) after provision for (release of) loan reserves 57,410 7,496 (6,651) (19,944) 38,311 Real estate operating income — — 23,199 — 23,199 Net result from mortgage loan receivables held for sale (194) — — — (194) Realized gain (loss) on securities — (307) — — (307) Unrealized gain (loss) on securities — 117 — — 117 Fee and other income 1,681 4 2 144 1,831 Net result from derivative transactions (1,843) (302) (97) — (2,242) Earnings (loss) from investment in unconsolidated ventures — — 217 — 217 Gain (loss) on extinguishment of debt — — — 9,217 9,217 Total other income (loss) (356) (488) 23,321 9,361 31,838 Compensation and employee benefits — — — (22,084) (22,084) Operating expenses — — — (5,256) (5,256) Real estate operating expenses — — (9,849) — (9,849) Fee expense (967) (48) (93) (412) (1,520) Depreciation and amortization — — (7,425) (104) (7,529) Total costs and expenses (967) (48) (17,367) (27,856) (46,238) Income tax (expense) benefit — — — (1,720) (1,720) Segment profit (loss) $ 56,087 $ 6,960 $ (697) $ (40,159) $ 22,191 Total assets as of March 31, 2023 $ 3,795,773 $ 520,008 $ 699,601 $ 845,144 $ 5,860,526 Three months ended March 31, 2022 Loans Securities Real Estate (1) Corporate/Other(2) Company Interest income $ 53,120 $ 3,065 $ — $ 20 $ 56,205 Interest expense (14,283) (452) (11,479) (20,821) (47,035) Net interest income (expense) 38,837 2,613 (11,479) (20,801) 9,170 (Provision for) release of loan loss reserves (874) — — (874) Net interest income (expense) after provision for (release of) loan reserves 37,963 2,613 (11,479) (20,801) 8,296 Real estate operating income — — 26,354 — 26,354 Net result from mortgage loan receivables held for sale (949) — — — (949) Realized gain (loss) on securities — (96) — — (96) Unrealized gain (loss) on securities — 17 — — 17 Realized gain on sale of real estate, net — — 29,154 — 29,154 Fee and other income 3,377 15 3,707 95 7,194 Net result from derivative transactions 2,337 804 (6) — 3,135 Earnings (loss) from investment in unconsolidated joint ventures — — 434 — 434 Total other income (loss) 4,765 740 59,643 95 65,243 Compensation and employee benefits — — — (29,864) (29,864) Operating expenses(3) 17 — — (5,525) (5,508) Real estate operating expenses — — (8,992) — (8,992) Fee expense (799) (48) (166) (975) (1,988) Depreciation and amortization — — (9,334) (8) (9,342) Total costs and expenses (782) (48) (18,492) (36,372) (55,694) Income tax (expense) benefit — — — 1,309 1,309 Segment profit (loss) $ 41,946 $ 3,305 $ 29,672 $ (55,769) $ 19,154 Total assets as of December 31, 2022 $ 3,892,382 $ 587,519 $ 706,355 $ 764,917 $ 5,951,173 (1) Includes the Company’s investment in unconsolidated ventures that held real estate of $6.3 million and $6.2 million as of March 31, 2023 and December 31, 2022, 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 FHLB stock of $9.6 million as of March 31, 2023 and December 31, 2022, and the Company’s senior unsecured notes of $1.6 billion at March 31, 2023 and December 31, 2022. |
ORGANIZATION AND OPERATIONS (De
ORGANIZATION AND OPERATIONS (Details) | Mar. 31, 2023 |
LCFH | |
ORGANIZATION AND OPERATIONS | |
Ownership interest in LCFH | 100% |
MORTGAGE LOAN RECEIVABLES - Sch
MORTGAGE LOAN RECEIVABLES - Schedule of Mortgage Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2023 | Dec. 31, 2022 | Jan. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2021 | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||
Outstanding Face Amount | $ 3,840,942 | $ 3,938,615 | |||
Allowance for credit losses | (25,499) | (20,755) | $ (32,332) | $ (31,752) | |
Carrying Value | $ 3,795,773 | $ 3,892,382 | $ 51,500 | ||
Weighted average yield | 9.14% | 8.82% | |||
Remaining Maturity | 1 year 1 month 6 days | 1 year 3 months 18 days | |||
Principal balance of loans on non-accrual status | $ 53,624 | $ 53,809 | |||
Deferred origination fees and other items | 15,500 | 21,500 | |||
First mortgage loans | |||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||
Outstanding Face Amount | 3,766,258 | 3,841,315 | |||
Carrying Value gross, consumer and commercial real estate | $ 3,750,799 | $ 3,819,860 | |||
Weighted average yield | 9.16% | 8.83% | |||
Remaining Maturity | 1 year 1 month 6 days | 1 year 3 months 18 days | |||
Mezzanine loans | |||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||
Outstanding Face Amount | $ 43,334 | $ 65,950 | |||
Carrying Value gross, consumer and commercial real estate | $ 43,276 | $ 65,886 | |||
Weighted average yield | 11.11% | 10.62% | |||
Remaining Maturity | 1 year 6 months | 1 year 7 months 6 days | |||
Total mortgage loans receivable | |||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||
Outstanding Face Amount | $ 3,809,592 | $ 3,907,265 | |||
Carrying Value gross, consumer and commercial real estate | $ 3,794,075 | $ 3,885,746 | |||
Weighted average yield | 9.18% | 8.85% | |||
Remaining Maturity | 1 year 1 month 6 days | 1 year 3 months 18 days | |||
Total mortgage loan receivables held for investment, net, at amortized cost | |||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||
Outstanding Face Amount | $ 3,809,592 | $ 3,907,265 | |||
Allowance for credit losses | (25,499) | (20,755) | $ (32,332) | $ (31,752) | |
Carrying Value | $ 3,768,576 | 3,864,991 | |||
Remaining Maturity | 2 years 4 months 24 days | ||||
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 | $ 31,350 | 31,350 | |||
Carrying Value | $ 27,197 | $ 27,391 | |||
Weighted average yield | 4.57% | 4.57% | |||
Remaining Maturity | 8 years 10 months 24 days | 9 years 2 months 12 days |
MORTGAGE LOAN RECEIVABLES - Add
MORTGAGE LOAN RECEIVABLES - Additional Information (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||
Feb. 28, 2023 USD ($) | Jan. 31, 2023 security | Mar. 31, 2023 USD ($) loans | Mar. 31, 2022 USD ($) | Dec. 31, 2022 USD ($) loans | Dec. 31, 2021 USD ($) | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||||
Outstanding Face Amount | $ 3,840,942 | $ 3,938,615 | |||||
Allowance for current expected credit losses | 26,200 | 21,500 | |||||
General CECL Reserve | 25,499 | $ 32,332 | 20,755 | $ 31,752 | |||
Increase in reserve of unfunded commitments | 700 | 700 | |||||
Individually impaired loans | 25,827 | 26,012 | |||||
Provision for (release of) loan loss reserves, net | 4,736 | 874 | |||||
Increase (decrease) of reserve on unfunded commitments | (8) | (300) | |||||
Number of loans in default | security | 1 | ||||||
Mortgage loans receivable | [1] | 3,794,075 | 3,885,746 | ||||
Loans nonaccrual status, amount | 53,624 | 53,809 | |||||
Principal balance of loans on non-accrual status | 53,624 | 53,809 | |||||
Office | |||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||||
Mortgage loans receivable | 920,152 | 980,031 | |||||
Asset Specific Reserve, Company Loan | |||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||||
General CECL Reserve | $ 2,700 | $ 2,700 | |||||
Number or loans in default | loans | 2 | 2 | |||||
Provision for (release of) loan loss reserves, net | 600 | ||||||
Provision for (release of) loan loss reserves, net | $ 4,700 | ||||||
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 | $ 3,300,000 | $ 3,400,000 | |||||
Loans receivable with variable rates of interest | 87.20% | 87.20% | |||||
Loans receivable with variable rates of interest, subject to interest rate floors | 100% | 99% | |||||
Outstanding Face Amount | $ 3,809,592 | $ 3,907,265 | |||||
General CECL Reserve | 25,499 | 32,332 | 20,755 | $ 31,752 | |||
Provision for (release of) loan loss reserves, net | 4,744 | $ 580 | |||||
Total mortgage loan receivables held for investment, net, at amortized cost | London Interbank Offered Rate (LIBOR) | |||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||||
Loans receivable with variable rates of interest | 2,300,000 | 2,300,000 | |||||
Total mortgage loan receivables held for investment, net, at amortized cost | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | |||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||||
Loans receivable with variable rates of interest | 1,000,000 | 1,100,000 | |||||
Mortgage loan receivables held for sale | |||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||||
Outstanding Face Amount | $ 31,350 | $ 31,350 | |||||
Percentage of loans receivable with fixed rates of interest | 100% | 100% | |||||
First mortgage loans | |||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||||
Outstanding Face Amount | $ 3,766,258 | $ 3,841,315 | |||||
First mortgage loans | Office | New York, NY | |||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||||
Mortgage loans receivable | $ 51,500 | $ 48,000 | |||||
Fixed rate | 7% | ||||||
Current pay rate | 5% | ||||||
Accrue rate | 2% | ||||||
Principal paydown | $ 3,500 | ||||||
Reserve funding | $ 6,500 | ||||||
Accrue rate, nonaccrual | 2% | ||||||
First mortgage loans | London Interbank Offered Rate (LIBOR) | Office | New York, NY | |||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||||
Loans receivable with variable rates of interest | 2.80% | ||||||
[1]Includes amounts relating to consolidated variable interest entities. Refer to Note 2 and Note 9. |
MORTGAGE LOAN RECEIVABLES - Act
MORTGAGE LOAN RECEIVABLES - Activity in Loan Portfolio (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Mortgage loan receivables held for investment, net, at amortized cost: | ||
Net result from mortgage loan receivables held for sale | $ (194) | $ (949) |
Allowance for credit losses | ||
Beginning balance, Allowance for credit losses | (20,755) | (31,752) |
Release (addition) of provision for current expected credit loss, net (3) | (4,736) | (874) |
Ending balance, Allowance for credit losses | (25,499) | (32,332) |
Total mortgage loans receivable | ||
Mortgage loan receivables held for investment, net, at amortized cost: | ||
Mortgage loans receivable, ending balance | 3,794,075 | |
Total mortgage loan receivables held for investment, net, at amortized cost | ||
Mortgage loan receivables held for investment, net, at amortized cost: | ||
Mortgage loans receivable, beginning balance | 3,885,746 | 3,553,737 |
Origination of mortgage loan receivables | 32,616 | 648,507 |
Repayment of mortgage loan receivables | (131,272) | (349,935) |
Net result from mortgage loan receivables held for sale | 0 | 0 |
Accretion/amortization of discount, premium and other fees | 6,985 | 5,162 |
Mortgage loans receivable, ending balance | 3,857,471 | |
Allowance for credit losses | ||
Beginning balance, Allowance for credit losses | (20,755) | (31,752) |
Release (addition) of provision for current expected credit loss, net (3) | (4,744) | (580) |
Ending balance, Allowance for credit losses | (25,499) | (32,332) |
Mortgage loan receivables held for sale | ||
Mortgage loan receivables held for investment, net, at amortized cost: | ||
Mortgage loans receivable, beginning balance | 27,391 | 0 |
Origination of mortgage loan receivables | 0 | 54,850 |
Repayment of mortgage loan receivables | 0 | 0 |
Net result from mortgage loan receivables held for sale | (194) | (949) |
Mortgage loans receivable, ending balance | $ 27,197 | $ 53,901 |
MORTGAGE LOAN RECEIVABLES - Pro
MORTGAGE LOAN RECEIVABLES - Provision for Loan Losses (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 USD ($) loans | Mar. 31, 2022 USD ($) | Dec. 31, 2022 USD ($) loans | |
Allowance for Loan and Lease Losses [Roll Forward] | |||
Allowance for credit losses at beginning of period | $ 20,755 | $ 31,752 | $ 31,752 |
Provision for (release of) current expected credit loss, net | 4,744 | 580 | |
Allowance for credit losses at end of period | 25,499 | 32,332 | 20,755 |
Principal balance of loans on non-accrual status | 53,624 | 53,809 | |
Total mortgage loan receivables held for investment, net, at amortized cost | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Allowance for credit losses at beginning of period | 20,755 | 31,752 | 31,752 |
Allowance for credit losses at end of period | 25,499 | 32,332 | 20,755 |
Asset Specific Reserve, Company Loan | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Allowance for credit losses at beginning of period | 2,700 | ||
Allowance for credit losses at end of period | 2,700 | $ 2,700 | |
Additional asset-specific reserve | $ 0 | $ 0 | |
Number or loans in default | loans | 2 | 2 | |
One loan | Total mortgage loan receivables held for investment, net, at amortized cost | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Principal balance of loans on non-accrual status | $ 30,500 | ||
Number or loans in default | loans | 1 |
MORTGAGE LOAN RECEIVABLES - Ind
MORTGAGE LOAN RECEIVABLES - Individually Impaired Loans (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | |
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total loans | [1] | $ 3,794,075 | $ 3,885,746 |
Subtotal loans, Year One | 14,339 | 1,145,229 | |
Subtotal loans, Year Two | 1,122,186 | 2,102,307 | |
Subtotal loans, Year Three | 2,112,313 | 56,150 | |
Subtotal loans, Year Four | 26,500 | 332,046 | |
Subtotal loans, Year 5 and Earlier | 492,910 | 224,002 | |
Subtotal mortgage loans receivable | 3,768,248 | 3,859,734 | |
Individually impaired loans, Year One | 0 | 0 | |
Individually impaired loans, Year Two | 0 | 0 | |
Individually impaired loans, Year Three | 0 | 0 | |
Individually impaired loans, Year Four | 0 | 0 | |
Individually impaired loans, Year Five and Earlier | 25,827 | 26,012 | |
Individually impaired loans | 25,827 | 26,012 | |
Total loans, Year One | 14,339 | 1,145,229 | |
Total loans, Year Two | 1,122,186 | 2,102,307 | |
Total loans, Year Three | 2,112,313 | 56,150 | |
Total loans, Year Four | 26,500 | 332,046 | |
Total loans, Year Five and Earlier | 518,737 | 250,014 | |
Accrued interest receivable | $ 23,900 | 23,200 | |
Financing Receivable, Accrued Interest, after Allowance for Credit Loss, Statement of Financial Position [Extensible Enumeration] | Accrued interest receivable | ||
Multifamily | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Year One | $ 14,339 | 702,125 | |
Year Two | 677,833 | 722,862 | |
Year Three | 730,370 | 0 | |
Year Four | 0 | 0 | |
Year Five and Earlier | 0 | 0 | |
Total loans | 1,422,542 | 1,424,987 | |
Office | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Year One | 0 | 78,754 | |
Year Two | 78,871 | 676,431 | |
Year Three | 672,894 | 29,650 | |
Year Four | 0 | 58,684 | |
Year Five and Earlier | 168,387 | 136,512 | |
Total loans | 920,152 | 980,031 | |
Mixed Use | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Year One | 0 | 201,777 | |
Year Two | 202,526 | 351,291 | |
Year Three | 356,226 | 26,500 | |
Year Four | 26,500 | 120,300 | |
Year Five and Earlier | 92,005 | 0 | |
Total loans | 677,257 | 699,868 | |
Industrial | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Year One | 0 | 37,616 | |
Year Two | 37,690 | 96,486 | |
Year Three | 96,952 | 0 | |
Year Four | 0 | 115,545 | |
Year Five and Earlier | 115,275 | 0 | |
Total loans | 249,917 | 249,647 | |
Retail | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Year One | 0 | 60,089 | |
Year Two | 60,250 | 107,305 | |
Year Three | 107,783 | 0 | |
Year Four | 0 | 12,953 | |
Year Five and Earlier | 22,098 | 9,126 | |
Total loans | 190,131 | 189,473 | |
Hospitality | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Year One | 0 | 0 | |
Year Two | 0 | 45,416 | |
Year Three | 45,485 | 0 | |
Year Four | 0 | 13,843 | |
Year Five and Earlier | 92,221 | 78,364 | |
Total loans | 137,706 | 137,623 | |
Manufactured Housing | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Year One | 0 | 32,515 | |
Year Two | 32,559 | 82,618 | |
Year Three | 82,724 | 0 | |
Year Four | 0 | 2,921 | |
Year Five and Earlier | 2,924 | 0 | |
Total loans | 118,207 | 118,054 | |
Other | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Year One | 0 | 32,353 | |
Year Two | 32,457 | 19,898 | |
Year Three | 19,879 | 0 | |
Year Four | 0 | 7,800 | |
Year Five and Earlier | 0 | 0 | |
Total loans | 52,336 | 60,051 | |
Self-Storage | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Year One | 0 | 0 | |
Year Two | 0 | 0 | |
Year Three | 0 | 0 | |
Year Four | 0 | 0 | |
Year Five and Earlier | 0 | 0 | |
Total loans | 0 | 0 | |
Northeast | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total loans | 1,163,181 | 1,191,337 | |
South | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total loans | 1,101,731 | 1,080,132 | |
Southwest | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total loans | 650,167 | 675,069 | |
Midwest | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total loans | 488,728 | 496,640 | |
West | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total loans | $ 364,441 | $ 416,556 | |
[1]Includes amounts relating to consolidated variable interest entities. Refer to Note 2 and Note 9. |
SECURITIES - Summary of Securit
SECURITIES - Summary of Securities (Details) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 USD ($) security | Dec. 31, 2022 USD ($) security | |
Debt Securities, Available-for-sale [Line Items] | ||
Outstanding Face Amount | $ 1,471,801 | $ 1,670,439 |
Amortized Cost Basis | 537,312 | 608,439 |
Gross Unrealized Gains | 361 | 144 |
Gross Unrealized Losses | (17,758) | (21,163) |
Carrying value, before allowance for credit loss | $ 519,915 | $ 587,420 |
Number of Securities | security | 100 | 106 |
Weighted Average Coupon | 2.37% | 2.06% |
Weighted Average Yield | 5.72% | 5.29% |
Remaining Duration | 1 year 7 days | 1 year 25 days |
Amortized Cost Basis | $ 160 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | (47) | |
Carrying Value | $ 113 | $ 119 |
Number of equity securities | security | 1 | 1 |
Allowance for current expected credit losses | $ (20) | $ (20) |
Total Amortized Cost Basis | 537,472 | 608,599 |
Total Gross Unrealized Gains | 361 | 144 |
Total real estate securities, Gross Unrealized Losses | (17,825) | (21,224) |
Carrying Value | $ 520,008 | $ 587,519 |
Total number of Securities | security | 101 | 107 |
CMBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Outstanding Face Amount | $ 503,183 | $ 562,839 |
Amortized Cost Basis | 502,710 | 562,246 |
Gross Unrealized Gains | 43 | 0 |
Gross Unrealized Losses | (17,563) | (20,913) |
Carrying value, before allowance for credit loss | $ 485,190 | $ 541,333 |
Number of Securities | security | 70 | 71 |
Weighted Average Coupon | 5.72% | 5.22% |
Weighted Average Yield | 5.76% | 5.32% |
Remaining Duration | 1 year 3 days | 1 year 21 days |
Risk retention requirement, amount | $ 9,000 | $ 9,000 |
CMBS interest-only | ||
Debt Securities, Available-for-sale [Line Items] | ||
Outstanding Face Amount | 898,620 | 1,026,195 |
Amortized Cost Basis | 9,493 | 10,498 |
Gross Unrealized Gains | 177 | 121 |
Gross Unrealized Losses | (134) | (176) |
Carrying value, before allowance for credit loss | $ 9,536 | $ 10,443 |
Number of Securities | security | 9 | 10 |
Weighted Average Coupon | 0.59% | 0.41% |
Weighted Average Yield | 3.82% | 3.65% |
Remaining Duration | 1 year 4 months 13 days | 1 year 5 months 12 days |
Risk retention requirement, amount | $ 400 | $ 400 |
GNMA interest-only | ||
Debt Securities, Available-for-sale [Line Items] | ||
Outstanding Face Amount | 44,966 | 45,369 |
Amortized Cost Basis | 265 | 285 |
Gross Unrealized Gains | 139 | 17 |
Gross Unrealized Losses | (19) | (21) |
Carrying value, before allowance for credit loss | $ 385 | $ 281 |
Number of Securities | security | 14 | 14 |
Weighted Average Coupon | 0.31% | 0.31% |
Weighted Average Yield | 5.95% | 4.23% |
Remaining Duration | 3 years 1 month 2 days | 3 years 3 months 18 days |
Agency securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Outstanding Face Amount | $ 32 | $ 36 |
Amortized Cost Basis | 33 | 36 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (1) | (1) |
Carrying value, before allowance for credit loss | $ 32 | $ 35 |
Number of Securities | security | 1 | 1 |
Weighted Average Coupon | 4% | 4% |
Weighted Average Yield | 2.70% | 2.70% |
Remaining Duration | 1 year 5 months 1 day | 1 year 6 months 14 days |
U.S. Treasury securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Outstanding Face Amount | $ 25,000 | $ 36,000 |
Amortized Cost Basis | 24,811 | 35,374 |
Gross Unrealized Gains | 2 | 6 |
Gross Unrealized Losses | (41) | (52) |
Carrying value, before allowance for credit loss | $ 24,772 | $ 35,328 |
Number of Securities | security | 6 | 10 |
Weighted Average Yield | 4.10% | 4.17% |
Remaining Duration | 3 months 14 days | 7 months 6 days |
Common Stock | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost Basis | $ 160 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | $ (41) |
SECURITIES - Securities by Rema
SECURITIES - Securities by Remaining Maturity (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-sale [Line Items] | ||
Within 1 year | $ 331,233 | $ 379,700 |
1-5 years | 188,544 | 207,590 |
5-10 years | 138 | 130 |
After 10 years | 0 | 0 |
Total | 519,895 | 587,400 |
Allowance for current expected credit losses | (20) | (20) |
Equity securities | 100 | 100 |
CMBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Within 1 year | 304,060 | 346,272 |
1-5 years | 181,131 | 195,061 |
5-10 years | 0 | 0 |
After 10 years | 0 | 0 |
Total | 485,191 | 541,333 |
CMBS interest-only | ||
Debt Securities, Available-for-sale [Line Items] | ||
Within 1 year | 2,365 | 937 |
1-5 years | 7,172 | 9,506 |
5-10 years | 0 | 0 |
After 10 years | 0 | 0 |
Total | 9,537 | 10,443 |
GNMA interest-only | ||
Debt Securities, Available-for-sale [Line Items] | ||
Within 1 year | 36 | 40 |
1-5 years | 210 | 111 |
5-10 years | 138 | 130 |
After 10 years | 0 | 0 |
Total | 384 | 281 |
Agency securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Within 1 year | 0 | 0 |
1-5 years | 31 | 35 |
5-10 years | 0 | 0 |
After 10 years | 0 | 0 |
Total | 31 | 35 |
U.S. Treasury securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Within 1 year | 24,772 | 32,451 |
1-5 years | 0 | 2,877 |
5-10 years | 0 | 0 |
After 10 years | 0 | 0 |
Total | $ 24,772 | $ 35,328 |
SECURITIES - Additional Informa
SECURITIES - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | ||
Sale of equity securities | $ 500 | $ 43 |
REAL ESTATE AND RELATED LEASE_3
REAL ESTATE AND RELATED LEASE INTANGIBLES, NET - Schedule of Real Estate Portfolio (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | |
Real estate and related lease intangibles, net | |||
Less: Accumulated depreciation and amortization | $ (206,505) | $ (199,008) | |
Real estate and related lease intangibles, net(2) | [1] | 693,266 | 700,136 |
Below market lease intangibles, net (other liabilities) | (30,369) | (30,892) | |
Accumulated amortization of below market lease | 14,200 | 13,600 | |
Unencumbered real estates | 170,200 | 140,300 | |
In-place leases and other intangibles | |||
Real estate and related lease intangibles, net | |||
Real estate | 114,689 | 114,687 | |
Undepreciated real estate and related lease intangibles | |||
Real estate and related lease intangibles, net | |||
Real estate | 899,771 | 899,144 | |
Land | |||
Real estate and related lease intangibles, net | |||
Real estate | 158,802 | 158,802 | |
Building | |||
Real estate and related lease intangibles, net | |||
Real estate | $ 626,280 | $ 625,655 | |
[1]Includes amounts relating to consolidated variable interest entities. Refer to Note 2 and Note 9. |
REAL ESTATE AND RELATED LEASE_4
REAL ESTATE AND RELATED LEASE INTANGIBLES, NET - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Business Acquisition [Line Items] | |||
Foreclosed properties held in real estate | $ 101,600 | $ 103,100 | |
Unbilled rent receivables | 800 | 1,300 | |
Tenant recoveries | 1,100 | $ 1,600 | |
Land | |||
Business Acquisition [Line Items] | |||
Undepreciated real estate and lease intangibles | 158,802 | 158,802 | |
Building | |||
Business Acquisition [Line Items] | |||
Undepreciated real estate and lease intangibles | $ 626,280 | $ 625,655 |
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 | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Real Estate [Abstract] | ||
Depreciation expense | $ 6,200 | $ 7,088 |
Amortization expense | 1,329 | 2,254 |
Total real estate depreciation and amortization expense | 7,529 | 9,342 |
Depreciation on corporate fixed assets | $ 100 | $ 8 |
REAL ESTATE AND RELATED LEASE_6
REAL ESTATE AND RELATED LEASE INTANGIBLES, NET - Unamortized Favorable Lease Intangibles (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Business Acquisition [Line Items] | |||
Gross intangible assets | $ 114,689 | $ 114,687 | |
Accumulated amortization | 51,125 | 49,725 | |
Net intangible assets | 63,564 | 64,962 | |
Unamortized favorable lease intangibles | 2,800 | $ 2,800 | |
Increase in operating lease income for amortization of below market lease intangibles acquired | 526 | $ 520 | |
Total | 454 | 444 | |
Above Market Leases | |||
Business Acquisition [Line Items] | |||
Reduction in operating lease income for amortization of above market lease intangibles acquired | $ (72) | $ (76) |
REAL ESTATE AND RELATED LEASE_7
REAL ESTATE AND RELATED LEASE INTANGIBLES, NET - Expected Future Amortization Expense (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Net intangible assets | $ 63,564 | $ 64,962 |
Increase/(Decrease) to Operating Lease Income | ||
Finite-Lived Intangible Assets [Line Items] | ||
2023 | 730 | |
2024 | 973 | |
2025 | 973 | |
2026 | 976 | |
2027 | 976 | |
Thereafter | 22,968 | |
Net intangible assets | 27,596 | |
Amortization Expense | ||
Finite-Lived Intangible Assets [Line Items] | ||
2023 | 3,398 | |
2024 | 4,531 | |
2025 | 4,391 | |
2026 | 3,740 | |
2027 | 3,554 | |
Thereafter | 41,179 | |
Net intangible assets | $ 60,793 |
REAL ESTATE AND RELATED LEASE_8
REAL ESTATE AND RELATED LEASE INTANGIBLES, NET - Future Minimum Rental Payments Receivable (Details) $ in Thousands | Mar. 31, 2023 USD ($) |
Real Estate [Abstract] | |
2023 | $ 40,682 |
2024 | 49,994 |
2025 | 49,801 |
2026 | 48,424 |
2027 | 46,267 |
Thereafter | 196,855 |
Total | $ 432,023 |
REAL ESTATE AND RELATED LEASE_9
REAL ESTATE AND RELATED LEASE INTANGIBLES, NET - Schedule of Real Estate Properties Acquired (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 USD ($) | Mar. 31, 2022 USD ($) | Feb. 28, 2022 USD ($) security | |
Business Acquisition [Line Items] | |||
Total real estate acquisitions | $ 0 | $ 15,436 | |
New York, NY | Apartments | |||
Business Acquisition [Line Items] | |||
Real estate acquired through foreclosure | $ 15,436 | ||
Ownership Interest | 100% | ||
New York, NY | Condos | |||
Business Acquisition [Line Items] | |||
Real estate acquired through foreclosure | $ 15,400 | ||
New York, NY | Condos | Measurement Input, Cap Rate | |||
Business Acquisition [Line Items] | |||
Measurement input | 0.055 | ||
New York, NY | Condos, Residential | |||
Business Acquisition [Line Items] | |||
Type of real estate unit acquired via foreclosure | security | 1 | ||
New York, NY | Condos, Retail | |||
Business Acquisition [Line Items] | |||
Type of real estate unit acquired via foreclosure | security | 1 |
REAL ESTATE AND RELATED LEAS_10
REAL ESTATE AND RELATED LEASE INTANGIBLES, NET - Real Estate Properties Sold (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | |||
Mar. 31, 2022 USD ($) property | Mar. 31, 2023 USD ($) | Mar. 31, 2022 USD ($) property | Dec. 31, 2022 USD ($) | ||
Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Net Sales Proceeds | $ 0 | $ 79,473 | |||
Net Book Value | [1] | 693,266 | $ 700,136 | ||
Realized gain (loss) on sale of real estate, net | $ 0 | 29,154 | |||
2022 Disposal Properties | |||||
Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Net Sales Proceeds | 79,404 | ||||
Net Book Value | $ 50,250 | 50,250 | |||
Realized gain (loss) on sale of real estate, net | 29,154 | ||||
Defeasance cost | 3,700 | ||||
2022 Disposal Properties | Office | Ewing, NJ | |||||
Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Net Sales Proceeds | 38,652 | ||||
Net Book Value | 24,134 | $ 24,134 | |||
Realized gain (loss) on sale of real estate, net | $ 14,518 | ||||
Properties | property | 1 | 1 | |||
2022 Disposal Properties | Warehouse | Conyers, GA | |||||
Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Net Sales Proceeds | $ 40,752 | ||||
Net Book Value | 26,116 | $ 26,116 | |||
Realized gain (loss) on sale of real estate, net | $ 14,636 | ||||
Properties | property | 1 | 1 | |||
[1]Includes amounts relating to consolidated variable interest entities. Refer to Note 2 and Note 9. |
DEBT OBLIGATIONS, NET - Schedul
DEBT OBLIGATIONS, NET - Schedule of Company's Debt Obligations (Details) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 USD ($) extensionOfMaturityPeriod | Dec. 31, 2022 USD ($) extensionOfMaturityPeriod | |
Assets Sold under Agreements to Repurchase [Line Items] | ||
Carrying Value of Debt Obligations | $ 769,266 | $ 847,863 |
Debt obligations | 3,022,835 | |
Carrying Amount of Collateral | 0 | 0 |
Committed Loan Repurchase Facility | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Committed / Principal Amount | 1,200,000 | 1,300,000 |
Carrying Value of Debt Obligations | 651,224 | 616,894 |
Committed but Unfunded | 548,776 | 683,106 |
Carrying Amount of Collateral | 906,081 | 860,485 |
Fair Value of Collateral | 902,850 | 861,284 |
Committed Loan Repurchase Facility | Maturing on 27 September 2025 | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Committed / Principal Amount | 500,000 | 500,000 |
Carrying Value of Debt Obligations | 318,983 | 318,983 |
Committed but Unfunded | 181,017 | 181,017 |
Carrying Amount of Collateral | 431,809 | 428,477 |
Fair Value of Collateral | $ 431,395 | $ 429,276 |
Number of extension maturity periods | extensionOfMaturityPeriod | 2 | 2 |
Length of extension options | 12 months | 12 months |
Committed Loan Repurchase Facility | Maturing On February 26 2023 | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Committed / Principal Amount | $ 100,000 | |
Carrying Value of Debt Obligations | 0 | |
Committed but Unfunded | 100,000 | |
Carrying Amount of Collateral | 0 | |
Fair Value of Collateral | $ 0 | |
Number of extension maturity periods | extensionOfMaturityPeriod | 1 | |
Length of extension options | 12 months | |
Committed Loan Repurchase Facility | Maturing on 19 December 2023 | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Committed / Principal Amount | $ 300,000 | $ 300,000 |
Carrying Value of Debt Obligations | 206,867 | 157,558 |
Committed but Unfunded | 93,133 | 142,442 |
Carrying Amount of Collateral | 306,449 | 244,102 |
Fair Value of Collateral | $ 303,632 | $ 244,102 |
Number of extension maturity periods | extensionOfMaturityPeriod | 2 | 2 |
Length of extension options | 364 days | 364 days |
Committed Loan Repurchase Facility | Maturing on April 30 2024 | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Committed / Principal Amount | $ 100,000 | $ 100,000 |
Carrying Value of Debt Obligations | 47,415 | 47,415 |
Committed but Unfunded | 52,585 | 52,585 |
Carrying Amount of Collateral | 64,263 | 63,307 |
Fair Value of Collateral | $ 64,263 | $ 63,307 |
Number of extension maturity periods | extensionOfMaturityPeriod | 3 | 3 |
Length of extension options | 12 months | 12 months |
Committed Loan Repurchase Facility | Maturing On 2 January 2024 | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Committed / Principal Amount | $ 100,000 | |
Carrying Value of Debt Obligations | 77,959 | |
Committed but Unfunded | 22,041 | |
Carrying Amount of Collateral | 103,560 | |
Fair Value of Collateral | $ 103,560 | |
Number of extension maturity periods | extensionOfMaturityPeriod | 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 / Principal Amount | $ 100,000 | |
Carrying Value of Debt Obligations | 77,959 | |
Committed but Unfunded | 22,041 | |
Carrying Amount of Collateral | 103,393 | |
Fair Value of Collateral | 103,393 | |
Committed Loan Repurchase Facility | Maturing On 22 January 2024 | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Committed / Principal Amount | $ 100,000 | 100,000 |
Carrying Value of Debt Obligations | 0 | 0 |
Committed but Unfunded | 100,000 | 100,000 |
Carrying Amount of Collateral | 0 | 0 |
Fair Value of Collateral | $ 0 | $ 0 |
Number of extension maturity periods | extensionOfMaturityPeriod | 2 | 2 |
Length of extension options | 12 months | 12 months |
Committed Loan Repurchase Facility | Maturing On 14 July 2023 | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Committed / Principal Amount | $ 100,000 | $ 100,000 |
Carrying Value of Debt Obligations | 0 | 14,979 |
Committed but Unfunded | 100,000 | 85,021 |
Carrying Amount of Collateral | 0 | 21,206 |
Fair Value of Collateral | $ 0 | $ 21,206 |
Length of extension options | 364 days | 364 days |
Committed Securities Repurchase Facility | Maturing On 27 May 2024 | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Committed / Principal Amount | $ 100,000 | |
Carrying Value of Debt Obligations | 8,032 | |
Committed but Unfunded | 91,968 | |
Carrying Amount of Collateral | 9,150 | |
Fair Value of Collateral | 9,150 | |
Committed Securities Repurchase Facility | Maturing On 27 May 2023 | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Committed / Principal Amount | $ 100,000 | |
Carrying Value of Debt Obligations | 8,640 | |
Committed but Unfunded | 91,360 | |
Carrying Amount of Collateral | 10,023 | |
Fair Value of Collateral | 10,023 | |
Uncommitted Securities Repurchase Facility | Maturing On 27 April 2023 | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Carrying Value of Debt Obligations | 110,011 | |
Carrying Amount of Collateral | 121,387 | |
Fair Value of Collateral | 121,387 | |
Restricted securities held-to-maturity | 1,900 | |
Uncommitted Securities Repurchase Facility | Maturing On 2 March 2023 | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Carrying Value of Debt Obligations | 222,328 | |
Carrying Amount of Collateral | 247,351 | |
Fair Value of Collateral | 247,351 | |
Restricted securities held-to-maturity | 2,000 | |
Total Repurchase Facilities | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Committed / Principal Amount | 1,300,000 | 1,400,000 |
Carrying Value of Debt Obligations | 769,267 | 847,862 |
Committed but Unfunded | 640,744 | 774,466 |
Carrying Amount of Collateral | 1,036,618 | 1,117,859 |
Fair Value of Collateral | 1,033,387 | 1,118,658 |
Revolving Credit Facility | Maturing On 27 July 2023 | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Committed / Principal Amount | 323,850 | 323,850 |
Carrying Value of Debt Obligations | 0 | 0 |
Committed but Unfunded | $ 323,850 | $ 323,850 |
Number of extension maturity periods | extensionOfMaturityPeriod | 4 | 4 |
Length of extension options | 12 months | 12 months |
Mortgage Loan Financing | Various Date | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Committed / Principal Amount | $ 469,385 | $ 497,454 |
Carrying Value of Debt Obligations | 469,690 | 497,991 |
Committed but Unfunded | 0 | 0 |
Carrying Amount of Collateral | 523,041 | 559,885 |
Fair Value of Collateral | 667,818 | 710,977 |
CLO Debt | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Committed / Principal Amount | 1,100,000 | |
Unamortized debt issuance costs | 4,800 | |
CLO Debt | Various Date | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Committed / Principal Amount | 1,064,365 | 1,064,365 |
Carrying Value of Debt Obligations | 1,059,593 | 1,058,462 |
Committed but Unfunded | 0 | 0 |
Carrying Amount of Collateral | 1,331,079 | 1,308,654 |
Fair Value of Collateral | 1,331,079 | 1,308,654 |
Unamortized debt issuance costs | 4,800 | 5,900 |
Borrowings from the FHLB | Various Date | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Committed / Principal Amount | 213,000 | 213,000 |
Carrying Value of Debt Obligations | 213,000 | 213,000 |
Committed but Unfunded | 0 | 0 |
Carrying Amount of Collateral | 250,747 | 248,806 |
Fair Value of Collateral | 250,747 | 248,806 |
Restricted securities held-to-maturity | 6,600 | 6,600 |
Senior Unsecured Notes | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Unamortized debt issuance costs | 14,185 | |
Senior Unsecured Notes | Various Date | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Debt issued | 1,585,063 | 1,643,794 |
Senior Unsecured Notes | 1,570,878 | 1,628,382 |
Committed but Unfunded | 0 | 0 |
Unamortized debt issuance costs | 14,200 | 15,400 |
Total Debt Obligations | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Debt issued | 4,955,663 | 5,142,463 |
Debt obligations | 4,082,428 | 4,245,697 |
Committed but Unfunded | 964,594 | 1,098,316 |
Carrying Amount of Collateral | 3,141,485 | 3,235,204 |
Fair Value of Collateral | $ 3,283,031 | $ 3,387,095 |
Minimum | Committed Loan Repurchase Facility | Maturing on 27 September 2025 | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Interest rate | 6.54% | 6.07% |
Minimum | Committed Loan Repurchase Facility | Maturing On February 26 2023 | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Interest rate | 0% | |
Minimum | Committed Loan Repurchase Facility | Maturing on 19 December 2023 | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Interest rate | 6.54% | 6.19% |
Minimum | Committed Loan Repurchase Facility | Maturing on April 30 2024 | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Interest rate | 6.55% | 6% |
Minimum | Committed Loan Repurchase Facility | Maturing On 2 January 2024 | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Interest rate | 6.06% | |
Minimum | Committed Loan Repurchase Facility | Maturing On 3 January 2023 | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Interest rate | 5.74% | |
Minimum | Committed Loan Repurchase Facility | Maturing On 22 January 2024 | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Interest rate | 0% | 0% |
Minimum | Committed Loan Repurchase Facility | Maturing On 14 July 2023 | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Interest rate | 0% | 7.07% |
Minimum | Committed Securities Repurchase Facility | Maturing On 27 May 2024 | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Interest rate | 5.46% | |
Minimum | Committed Securities Repurchase Facility | Maturing On 27 May 2023 | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Interest rate | 5.04% | |
Minimum | Uncommitted Securities Repurchase Facility | Maturing On 27 April 2023 | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Interest rate | 5.32% | |
Minimum | Uncommitted Securities Repurchase Facility | Maturing On 2 March 2023 | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Interest rate | 4.73% | |
Minimum | Revolving Credit Facility | Maturing On 27 July 2023 | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Interest rate | 0% | 0% |
Minimum | Mortgage Loan Financing | Various Date | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Interest rate | 4.25% | 4.25% |
Minimum | CLO Debt | Various Date | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Interest rate | 5.88% | 5.52% |
Minimum | Borrowings from the FHLB | Various Date | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Interest rate | 274% | 274% |
Minimum | Senior Unsecured Notes | Various Date | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Interest rate | 4.25% | 4.25% |
Maximum | Committed Loan Repurchase Facility | Maturing on 27 September 2025 | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Interest rate | 7.04% | 6.57% |
Maximum | Committed Loan Repurchase Facility | Maturing On February 26 2023 | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Interest rate | 0% | |
Maximum | Committed Loan Repurchase Facility | Maturing on 19 December 2023 | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Interest rate | 7.85% | 7.07% |
Maximum | Committed Loan Repurchase Facility | Maturing on April 30 2024 | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Interest rate | 6.55% | 6% |
Maximum | Committed Loan Repurchase Facility | Maturing On 2 January 2024 | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Interest rate | 6.56% | |
Maximum | Committed Loan Repurchase Facility | Maturing On 3 January 2023 | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Interest rate | 6.24% | |
Maximum | Committed Loan Repurchase Facility | Maturing On 22 January 2024 | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Interest rate | 0% | 0% |
Maximum | Committed Loan Repurchase Facility | Maturing On 14 July 2023 | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Interest rate | 0% | 7.07% |
Maximum | Committed Securities Repurchase Facility | Maturing On 27 May 2024 | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Interest rate | 5.71% | |
Maximum | Committed Securities Repurchase Facility | Maturing On 27 May 2023 | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Interest rate | 5.29% | |
Maximum | Uncommitted Securities Repurchase Facility | Maturing On 27 April 2023 | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Interest rate | 6.68% | |
Maximum | Uncommitted Securities Repurchase Facility | Maturing On 2 March 2023 | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Interest rate | 6% | |
Maximum | Revolving Credit Facility | Maturing On 27 July 2023 | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Interest rate | 0% | 0% |
Maximum | Mortgage Loan Financing | Various Date | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Interest rate | 8.53% | 8.03% |
Maximum | CLO Debt | Various Date | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Interest rate | 8.33% | 7.97% |
Maximum | Borrowings from the FHLB | Various Date | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Interest rate | 5.18% | 4.70% |
Maximum | Senior Unsecured Notes | Various Date | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Interest rate | 5.25% | 5.25% |
DEBT OBLIGATIONS, NET - Committ
DEBT OBLIGATIONS, NET - Committed Loan and Securities Repurchase Facilities (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 USD ($) security agreement | Dec. 31, 2022 USD ($) | |
Debt Instrument [Line Items] | ||
Obligations outstanding | $ 769,266 | $ 847,863 |
Number of counterparties with repurchase agreements | security | 6 | |
Number of counterparties with collateral exceeding borrowed amounts | security | 0 | |
Amount of collateral exceeding borrowings | $ 152,900 | |
Amount of collateral exceeding borrowings, as a percentage | 10% | |
Weighted average haircut | 26% | |
Committed Loan Repurchase Facility | ||
Debt Instrument [Line Items] | ||
Number of agreements | agreement | 6 | |
Consolidated CLO debt obligations | $ 1,200,000 | $ 1,300,000 |
Committed Securities Repurchase Facility | Maturing on 23 December 2021 | ||
Debt Instrument [Line Items] | ||
Consolidated CLO debt obligations | $ 100,000 |
DEBT OBLIGATIONS, NET - Revolvi
DEBT OBLIGATIONS, NET - Revolving Credit Facility (Details) | Mar. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Jul. 27, 2022 USD ($) extensionOfMaturityPeriod |
Debt Instrument [Line Items] | |||
Carrying Value of Debt Obligations | $ 769,266,000 | $ 847,863,000 | |
Revolving credit facility | Line of Credit | |||
Debt Instrument [Line Items] | |||
Committed amount on credit agreement | $ 323,900,000 | ||
Revolving credit facility | London Interbank Offered Rate (LIBOR) | |||
Debt Instrument [Line Items] | |||
Committed amount on credit agreement | 323,900,000 | ||
Revolving credit facility | Secured Overnight Financing Rate (SOFR) | Line of Credit | |||
Debt Instrument [Line Items] | |||
Stated interest rate on debt instrument | 2.50% | ||
Letter of Credit | |||
Debt Instrument [Line Items] | |||
Committed amount on credit agreement | 25,000,000 | ||
Revolving credit facility | Maturing on 11 February 2023 | |||
Debt Instrument [Line Items] | |||
Carrying Value of Debt Obligations | 0 | ||
Committed Loan Repurchase Facility | |||
Debt Instrument [Line Items] | |||
Carrying Value of Debt Obligations | 651,224,000 | 616,894,000 | |
Committed but Unfunded | $ 548,776,000 | $ 683,106,000 | |
Committed Loan Repurchase Facility | Revolving credit facility | Line of Credit | |||
Debt Instrument [Line Items] | |||
Length of extension options | 1 year | ||
Committed Loan Repurchase Facility | Maturing 27 July 2023 | Revolving credit facility | Line of Credit | |||
Debt Instrument [Line Items] | |||
Number of additional extension maturity periods | extensionOfMaturityPeriod | 4 |
DEBT OBLIGATIONS, NET - Debt Is
DEBT OBLIGATIONS, NET - Debt Issuance Costs (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Credit Agreement and Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Unamortized debt issuance expense | $ 4.9 | $ 5 |
DEBT OBLIGATIONS, NET - Uncommi
DEBT OBLIGATIONS, NET - Uncommitted Securities Repurchase Facilities (Details) - Uncommitted Securities Repurchase Facilities | 3 Months Ended |
Mar. 31, 2023 | |
Minimum | |
Debt Instrument [Line Items] | |
Advance rates | 75% |
Maximum | |
Debt Instrument [Line Items] | |
Advance rates | 95% |
DEBT OBLIGATIONS, NET - Mortgag
DEBT OBLIGATIONS, NET - Mortgage Loan Financing (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 USD ($) agreement | Mar. 31, 2022 USD ($) agreement | Dec. 31, 2022 USD ($) | |
Debt Instrument [Line Items] | |||
Amortization of premium/discount on mortgage loan financing included in interest expense | $ (150) | $ (330) | |
Mortgage loan financing | |||
Debt Instrument [Line Items] | |||
Weighted average term | 3 years 10 months 24 days | ||
Carrying amount | $ 469,700 | $ 498,000 | |
Net unamortized premiums | 2,300 | 2,400 | |
Amortization of premium/discount on mortgage loan financing included in interest expense | (200) | $ (300) | |
Pledged assets, real estate and lease intangibles, net | $ 523,000 | $ 559,900 | |
Number of agreements | agreement | 0 | 0 | |
Minimum | Mortgage loan financing | |||
Debt Instrument [Line Items] | |||
Stated interest rate on debt instrument | 4.25% | ||
Maximum | Mortgage loan financing | |||
Debt Instrument [Line Items] | |||
Stated interest rate on debt instrument | 8.53% |
DEBT OBLIGATIONS, NET - Collate
DEBT OBLIGATIONS, NET - Collateralized Loan Obligation Debt (Details) $ in Thousands | Dec. 02, 2021 USD ($) security | Jul. 13, 2021 USD ($) | Mar. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | |
Debt Instrument [Line Items] | |||||
Debt obligations, net | [1] | $ 4,082,428 | $ 4,245,697 | ||
Variable Interest Entity, Primary Beneficiary | |||||
Debt Instrument [Line Items] | |||||
Debt obligations, net | 1,059,593 | 1,058,462 | |||
Variable Interest Entity, Primary Beneficiary | Collateralized Loan Obligation | |||||
Debt Instrument [Line Items] | |||||
Subordinate and controlling interest | 15.60% | 18% | |||
Number of additional tranches | security | 2 | ||||
Subordinate and controlling interest as investment | 6.80% | ||||
CLO Debt | |||||
Debt Instrument [Line Items] | |||||
Unamortized debt issuance costs | 4,800 | ||||
Various Date | CLO Debt | |||||
Debt Instrument [Line Items] | |||||
Debt obligations, net | 1,100,000 | ||||
Unamortized debt issuance costs | $ 4,800 | $ 5,900 | |||
Non-Recourse Notes | CLO Debt | |||||
Debt Instrument [Line Items] | |||||
Debt obligations, net | $ 566,200 | $ 498,200 | |||
Loans financed | $ 729,400 | $ 607,500 | |||
Advance rate | 77.60% | 82% | |||
[1]Includes amounts relating to consolidated variable interest entities. Refer to Note 2 and Note 9. |
DEBT OBLIGATIONS, NET - Borrowi
DEBT OBLIGATIONS, NET - Borrowings from the Federal Home Loan Bank (“FHLB”) (Details) - Tuebor Captive Insurance Company LLC $ in Millions | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Debt Instrument [Line Items] | |
Amount restricted from transfer | $ 836.8 |
Borrowings from the FHLB | |
Debt Instrument [Line Items] | |
FHLB borrowings outstanding | $ 213 |
Weighted average term | 1 year |
Weighted average interest rate | 4.98% |
Borrowings from the FHLB | Commercial Mortgage Backed Securities, US Agency Securities and U.S. Treasury Securities | |
Debt Instrument [Line Items] | |
Collateral for debt instrument | $ 250.7 |
Borrowings from the FHLB | Minimum | |
Debt Instrument [Line Items] | |
Average term | 4 months 24 days |
Stated interest rate on debt instrument | 2.74% |
Advance rates | 71.70% |
Borrowings from the FHLB | Maximum | |
Debt Instrument [Line Items] | |
Average term | 1 year 6 months |
Stated interest rate on debt instrument | 5.18% |
Advance rates | 97.10% |
DEBT OBLIGATIONS, NET - Senior
DEBT OBLIGATIONS, NET - Senior Unsecured Notes (Details) - USD ($) | 3 Months Ended | |||||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | Jun. 23, 2021 | Jan. 30, 2020 | Sep. 25, 2017 | |
Debt Instrument [Line Items] | ||||||
Gain on extinguishment of debt | $ 9,217,000 | $ 0 | ||||
Ladder Capital Finance Corporation | LCFH | ||||||
Debt Instrument [Line Items] | ||||||
Ownership interest in LCFC | 100% | |||||
Senior Unsecured Notes | ||||||
Debt Instrument [Line Items] | ||||||
Unamortized debt issuance costs | $ 14,185,000 | |||||
Various Date | Senior Unsecured Notes | ||||||
Debt Instrument [Line Items] | ||||||
Senior Unsecured Notes | 1,570,878,000 | $ 1,628,382,000 | ||||
Loan refinance | 1,585,063,000 | 1,643,794,000 | ||||
Unamortized debt issuance costs | 14,200,000 | $ 15,400,000 | ||||
Senior Unsecured Notes | ||||||
Debt Instrument [Line Items] | ||||||
Senior Unsecured Notes | 1,600,000,000 | |||||
Senior Notes Due 2025 | Senior Unsecured Notes | ||||||
Debt Instrument [Line Items] | ||||||
Loan refinance | 327,800,000 | |||||
Stated interest rate on debt instrument | 5.25% | |||||
Notes repurchased | 16,200,000 | |||||
Gain on extinguishment of debt | 1,300,000 | |||||
Senior Notes Due 2027 | Senior Unsecured Notes | ||||||
Debt Instrument [Line Items] | ||||||
Loan refinance | 614,400,000 | |||||
Stated interest rate on debt instrument | 4.25% | |||||
Notes repurchased | 36,400,000 | |||||
Gain on extinguishment of debt | 6,400,000 | |||||
Senior Notes Due 2029 | Senior Unsecured Notes | ||||||
Debt Instrument [Line Items] | ||||||
Loan refinance | 642,900,000 | |||||
Stated interest rate on debt instrument | 4.75% | |||||
Notes repurchased | 6,100,000 | |||||
Gain on extinguishment of debt | $ 1,400,000 |
DEBT OBLIGATIONS, NET - Secured
DEBT OBLIGATIONS, NET - Secured Financing Facility (Details) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 | Apr. 30, 2020 | |
Debt Instrument [Line Items] | ||||
Debt obligations, net | [1] | $ 4,082,428,000 | $ 4,245,697,000 | |
Class A Common Stock | ||||
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% | |||
Non-Recourse Notes | Secured Debt | Koch Real Estate Investments, LLC | ||||
Debt Instrument [Line Items] | ||||
Committed amount on credit agreement | $ 206,400,000 | |||
[1]Includes amounts relating to consolidated variable interest entities. Refer to Note 2 and Note 9. |
DEBT OBLIGATIONS, NET - Sched_2
DEBT OBLIGATIONS, NET - Schedule of Maturities (Details) $ in Thousands | Mar. 31, 2023 USD ($) |
Long-term Debt, Fiscal Year Maturity [Abstract] | |
2023 | $ 170,361 |
2024 | 603,270 |
2025 | 651,924 |
2026 | 89,161 |
2027 | 808,995 |
Thereafter | 712,740 |
Subtotal | 3,036,451 |
Premiums included in mortgage loan financing | 2,270 |
Debt obligations | 3,022,835 |
Senior Unsecured Notes | |
Long-term Debt, Fiscal Year Maturity [Abstract] | |
Unamortized debt issuance costs | (14,185) |
Mortgage loan financings | |
Long-term Debt, Fiscal Year Maturity [Abstract] | |
Unamortized debt issuance costs | (1,701) |
CLO Debt | |
Long-term Debt, Fiscal Year Maturity [Abstract] | |
Unamortized debt issuance costs | (4,800) |
Consolidated CLO debt obligations | $ 1,100,000 |
DEBT OBLIGATIONS, NET - Financi
DEBT OBLIGATIONS, NET - Financial Covenants (Details) $ in Millions | Mar. 31, 2023 USD ($) |
Debt Disclosure [Abstract] | |
Equity restricted as payment as a dividend | $ 871.4 |
DEBT OBLIGATIONS, NET - LIBOR T
DEBT OBLIGATIONS, NET - LIBOR Transition (Details) | Mar. 31, 2023 |
London Interbank Offered Rate (LIBOR) | |
Debt Instrument [Line Items] | |
Percentage of debt with variable rate | 59.80% |
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | |
Debt Instrument [Line Items] | |
Percentage of debt with variable rate | 40.20% |
DERIVATIVE INSTRUMENTS - Schedu
DERIVATIVE INSTRUMENTS - Schedule of Derivatives Outstanding (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Derivative [Line Items] | ||
Notional | $ 106,408 | $ 204,700 |
Fair value, asset | 1,470 | 2,038 |
Fair value, liability | 49 | 0 |
1 Month Term SOFR | ||
Derivative [Line Items] | ||
Notional | 808 | 90,000 |
Fair value, asset | 1,470 | 1,804 |
Fair value, liability | $ 0 | $ 0 |
Remaining maturity | 1 year 4 months 17 days | 1 year 8 months 4 days |
5-year Treasury-Note Futures | ||
Derivative [Line Items] | ||
Notional | $ 44,200 | $ 44,200 |
Fair value, asset | 0 | 51 |
Fair value, liability | $ 20 | $ 0 |
Remaining maturity | 3 months | 3 months |
10-year Treasury-Note Futures | ||
Derivative [Line Items] | ||
Notional | $ 61,400 | $ 61,400 |
Fair value, asset | 0 | 71 |
Fair value, liability | $ 29 | $ 0 |
Remaining maturity | 3 months | 3 months |
Futures | ||
Derivative [Line Items] | ||
Notional | $ 105,600 | $ 105,600 |
Fair value, asset | 0 | 122 |
Fair value, liability | $ 49 | 0 |
Options | ||
Derivative [Line Items] | ||
Notional | 9,100 | |
Fair value, asset | 112 | |
Fair value, liability | $ 0 | |
Remaining maturity | 2 months 12 days |
DERIVATIVE INSTRUMENTS - Sche_2
DERIVATIVE INSTRUMENTS - Schedule of Realized Gains (Losses) on Derivatives (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Derivative [Line Items] | ||
Unrealized Gain/(Loss) | $ (374) | $ (168) |
Realized Gain/(Loss) | (1,868) | 3,303 |
Net Result from Derivative Transactions | (2,242) | 3,135 |
Caps | ||
Derivative [Line Items] | ||
Unrealized Gain/(Loss) | (334) | (6) |
Realized Gain/(Loss) | 237 | 0 |
Net Result from Derivative Transactions | (97) | (6) |
Futures | ||
Derivative [Line Items] | ||
Unrealized Gain/(Loss) | (171) | (162) |
Realized Gain/(Loss) | (1,861) | 3,303 |
Net Result from Derivative Transactions | (2,032) | $ 3,141 |
Options | ||
Derivative [Line Items] | ||
Unrealized Gain/(Loss) | 131 | |
Realized Gain/(Loss) | (244) | |
Net Result from Derivative Transactions | $ (113) |
DERIVATIVE INSTRUMENTS - Additi
DERIVATIVE INSTRUMENTS - Additional Information (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Cash margins held as collateral for derivatives by counterparties | $ 2.7 | $ 2.5 |
OFFSETTING ASSETS AND LIABILI_3
OFFSETTING ASSETS AND LIABILITIES - Offsetting Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Repurchase agreements | ||
Gross amounts of recognized liabilities | $ 769,266 | $ 847,863 |
Gross amounts offset in the balance sheet | 0 | 0 |
Net amounts of liabilities presented in the balance sheet | 769,266 | 847,863 |
Gross amounts not offset in the balance sheet | ||
Financial instruments collateral | 769,266 | 847,863 |
Cash collateral posted/(received) | 3,333 | 19,128 |
Net amount | 765,933 | 828,735 |
Total | ||
Gross amounts of recognized liabilities | 769,266 | 847,863 |
Gross amounts offset in the balance sheet | 0 | 0 |
Net amounts of liabilities presented in the balance sheet | 769,266 | 847,863 |
Gross amounts not offset in the balance sheet | ||
Financial instruments collateral | 769,266 | 847,863 |
Cash collateral posted/(received) | 3,333 | 19,128 |
Net amount | $ 765,933 | $ 828,735 |
OFFSETTING ASSETS AND LIABILI_4
OFFSETTING ASSETS AND LIABILITIES - Offsetting Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | |
Offsetting of derivative assets | |||
Gross amounts of recognized assets | $ 1,421 | $ 2,038 | |
Gross amounts offset in the balance sheet | 0 | 0 | |
Derivative instruments | [1] | 1,421 | 2,038 |
Derivative instruments | 1,470 | 2,038 | |
Gross amounts not offset in the balance sheet | |||
Financial instruments | 0 | 0 | |
Cash collateral received/(posted) | (2,655) | (2,505) | |
Net amount | $ (1,234) | $ (467) | |
[1]Includes amounts relating to consolidated variable interest entities. Refer to Note 2 and Note 9. |
CONSOLIDATED VARIABLE INTERES_3
CONSOLIDATED VARIABLE INTEREST ENTITIES (Details) $ in Thousands | Mar. 31, 2023 USD ($) security | Dec. 31, 2022 USD ($) security | Mar. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||
Number of consolidated collateralized loan obligation variable interest entities | security | 2 | 2 | |||||
Variable Interest Entity [Line Items] | |||||||
Restricted cash | [1] | $ 25,158 | $ 50,524 | ||||
Accrued interest receivable | [1] | 25,794 | 24,938 | ||||
Other assets | [1] | 166,631 | 78,339 | ||||
Total assets | [1] | 5,860,526 | 5,951,173 | ||||
Debt obligations, net | [1] | 4,082,428 | 4,245,697 | ||||
Accrued expenses | [1] | 50,937 | 68,227 | ||||
Other liabilities | [1] | 167,805 | 71,688 | ||||
Total liabilities | [1] | 4,331,972 | 4,417,612 | ||||
Total equity | 1,528,554 | [1] | 1,533,561 | [1] | $ 1,509,157 | $ 1,513,619 | |
Total liabilities and equity | [1] | 5,860,526 | 5,951,173 | ||||
Variable Interest Entity, Primary Beneficiary | |||||||
Variable Interest Entity [Line Items] | |||||||
Restricted cash | 1,170 | 4,902 | |||||
Mortgage loan receivables held for investment, net, at amortized cost | 1,331,079 | 1,308,654 | |||||
Accrued interest receivable | 8,817 | 8,313 | |||||
Other assets | 4 | 17,505 | |||||
Total assets | 1,341,070 | 1,339,374 | |||||
Debt obligations, net | 1,059,593 | 1,058,462 | |||||
Accrued expenses | 3,213 | 3,029 | |||||
Other liabilities | 65 | 65 | |||||
Total liabilities | 1,062,871 | 1,061,556 | |||||
Net equity in VIEs (eliminated in consolidation) | 278,199 | 277,818 | |||||
Total equity | 278,199 | 277,818 | |||||
Total liabilities and equity | $ 1,341,070 | $ 1,339,374 | |||||
[1]Includes amounts relating to consolidated variable interest entities. Refer to Note 2 and Note 9. |
EQUITY STRUCTURE AND ACCOUNTS -
EQUITY STRUCTURE AND ACCOUNTS - Additional Information (Details) - 2014 Share Repurchase Authorization Program - USD ($) $ / shares in Units, $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Jul. 27, 2022 | Jul. 26, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
Class of Stock [Line Items] | ||||||
Remaining amount available for repurchase | $ 44,500 | |||||
Percentage of aggregate common stock outstanding under Repurchase Program | 3.70% | |||||
Closing price (in dollars per share) | $ 9.45 | |||||
Class A Common Stock | ||||||
Class of Stock [Line Items] | ||||||
Additional authorizations | $ 50,000 | $ 39,500 | ||||
Remaining amount available for repurchase | $ 44,452 | $ 46,737 | $ 37,888 | $ 38,102 |
EQUITY STRUCTURE AND ACCOUNTS_2
EQUITY STRUCTURE AND ACCOUNTS - Schedule of Repurchase of Treasury Stock Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Treasury Stock [Roll Forward] | ||
Repurchases paid | $ (2,285) | $ (611) |
2014 Share Repurchase Authorization Program | ||
Treasury Stock [Roll Forward] | ||
Remaining amount available for repurchase, end of period | $ 44,500 | |
2014 Share Repurchase Authorization Program | Class A Common Stock | ||
Class of Stock [Line Items] | ||
Purchase of treasury stock (in shares) | 250,000 | 20,000 |
Treasury Stock [Roll Forward] | ||
Remaining amount available for repurchase, beginning of period | $ 46,737 | $ 38,102 |
Repurchases paid | (2,285) | (214) |
Remaining amount available for repurchase, end of period | $ 44,452 | $ 37,888 |
EQUITY STRUCTURE AND ACCOUNTS_3
EQUITY STRUCTURE AND ACCOUNTS - Dividends Declared (Details) - $ / shares | 3 Months Ended | |||
Mar. 15, 2023 | Mar. 15, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Class A Common Stock | ||||
Class of Stock [Line Items] | ||||
Dividends per share of Class A common stock (in dollars per share) | $ 0.23 | $ 0.20 | $ 0.23 | $ 0.20 |
EQUITY STRUCTURE AND ACCOUNTS_4
EQUITY STRUCTURE AND ACCOUNTS - Changes in Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | ||
AOCI Attributable to Parent [Roll Forward] | |||
Beginning Balance | $ 1,533,561 | [1] | $ 1,513,619 |
Other comprehensive income (loss) | 3,485 | (6,641) | |
Ending Balance | 1,528,554 | [1] | 1,509,157 |
Accumulated Other Comprehensive Income (Loss) | |||
AOCI Attributable to Parent [Roll Forward] | |||
Beginning Balance | (21,009) | (4,112) | |
Other comprehensive income (loss) | 3,485 | (6,641) | |
Ending Balance | $ (17,524) | $ (10,753) | |
[1]Includes amounts relating to consolidated variable interest entities. Refer to Note 2 and Note 9. |
NONCONTROLLING INTERESTS (Detai
NONCONTROLLING INTERESTS (Details) - Consolidated Venture $ in Millions | Mar. 31, 2023 USD ($) property jointVenture |
Noncontrolling Interest [Line Items] | |
Number of consolidated ventures | jointVenture | 2 |
Isla Vista, CA | Student Housing | |
Noncontrolling Interest [Line Items] | |
Number of real estate properties | property | 40 |
Property book value | $ 79.5 |
Oakland County, MI | Office Building | |
Noncontrolling Interest [Line Items] | |
Property book value | $ 8.7 |
Consolidated Ventures | Minimum | |
Noncontrolling Interest [Line Items] | |
Noncontrolling interest ownership | 10% |
Consolidated Ventures | Maximum | |
Noncontrolling Interest [Line Items] | |
Noncontrolling interest ownership | 25% |
EARNINGS PER SHARE - Net Income
EARNINGS PER SHARE - Net Income and Weighted Average Shares Outstanding (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Weighted average shares outstanding: | ||
Basic (in shares) | 124,493,132 | 124,305,943 |
Diluted (in shares) | 124,656,102 | 125,478,001 |
Class A Common Stock | ||
Earnings Per Share | ||
Basic Net income (loss) available for Class A common shareholders | $ 22,408 | $ 19,032 |
Diluted Net income (loss) available for Class A common shareholders | $ 22,408 | $ 19,032 |
Weighted average shares outstanding: | ||
Basic (in shares) | 124,493,132 | 124,305,943 |
Diluted (in shares) | 124,656,102 | 125,478,001 |
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 | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Denominator: | ||
Weighted average number of shares of Class A common stock outstanding (in shares) | 124,493,132 | 124,305,943 |
Basic net income (loss) per share of Class A common stock (in dollars per share) | $ 0.18 | $ 0.15 |
Denominator: | ||
Weighted average number of shares of Class A common stock outstanding (in shares) | 124,493,132 | 124,305,943 |
Diluted weighted average number of shares of Class A common stock outstanding (in shares) | 124,656,102 | 125,478,001 |
Diluted net income (loss) per share of Class A common stock (in dollars per share) | $ 0.18 | $ 0.15 |
Anti-dilutive shares (in shares) | 390,313 | |
Class A Common Stock | ||
Numerator: | ||
Net income (loss) attributable to Class A common shareholders | $ 22,408 | $ 19,032 |
Denominator: | ||
Weighted average number of shares of Class A common stock outstanding (in shares) | 124,493,132 | 124,305,943 |
Basic net income (loss) per share of Class A common stock (in dollars per share) | $ 0.18 | $ 0.15 |
Numerator: | ||
Net income (loss) attributable to Class A common shareholders | $ 22,408 | $ 19,032 |
Net income (loss) attributable to Class A common shareholders | $ 22,408 | $ 19,032 |
Denominator: | ||
Weighted average number of shares of Class A common stock outstanding (in shares) | 124,493,132 | 124,305,943 |
Diluted weighted average number of shares of Class A common stock outstanding (in shares) | 124,656,102 | 125,478,001 |
Diluted net income (loss) per share of Class A common stock (in dollars per share) | $ 0.18 | $ 0.15 |
Class A Common Stock | Restricted Stock | ||
Denominator: | ||
Incremental shares of stock based compensation (in shares) | 162,970 | 1,172,058 |
STOCK BASED AND OTHER COMPENS_3
STOCK BASED AND OTHER COMPENSATION PLANS - Stock Based Compensation Plans Summary (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | ||
Stock-based compensation expense | $ 9,124 | $ 20,412 |
Recognized equity based compensation expense | $ 9,124 | $ 20,412 |
STOCK BASED AND OTHER COMPENS_4
STOCK BASED AND OTHER COMPENSATION PLANS - Summary of Grants (Details) - Restricted Stock - $ / shares | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of Shares (in shares) | 1,417,561 | |
Class A Common Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of Shares (in shares) | 1,417,561 | 2,843,340 |
Weighted Average Fair Value Per Share (in dollars per share) | $ 11.58 | $ 11.89 |
STOCK BASED AND OTHER COMPENS_5
STOCK BASED AND OTHER COMPENSATION PLANS - Nonvested Shares Outstanding (Details) $ / shares in Units, $ in Millions | 3 Months Ended |
Mar. 31, 2023 USD ($) $ / shares shares | |
Weighted Average Grant Date Fair Value | |
Nonvested/Outstanding Weighted Average Grant Date Fair Value, beginning balance (in dollars pre share) | $ / shares | $ 12.62 |
Granted, Weighted Average Grant Date Fair Value (in dollars per share) | $ / shares | 11.58 |
Vested, Weighted Average Grant Date Fair Value (in dollars per share) | $ / shares | 12.14 |
Forfeited, Weighted Average Grant Date Fair Value (in dollars per share) | $ / shares | 10.32 |
Nonvested/Outstanding Weighted Average Grant Date Fair Value, ending balance (in dollars per share) | $ / shares | 12.36 |
Stock Options | |
Weighted-average exercise price of outstanding options, warrants and rights | $ / shares | $ 12.36 |
Unrecognized compensation cost | $ | $ 19.2 |
Period of recognition for unrecognized compensation costs | 35 months |
Remaining vesting period | 26 months 18 days |
Restricted Stock | |
Restricted Stock | |
Nonvested/Outstanding (in shares) | 2,529,571 |
Granted (in shares) | 1,417,561 |
Vested (in shares) | (1,697,350) |
Forfeited (in shares) | (32,446) |
Nonvested/Outstanding (in shares) | 2,217,336 |
Stock Options | |
Stock Options | |
Nonvested/Outstanding (in shares) | 623,788 |
Granted (in shares) | 0 |
Forfeited (in shares) | 0 |
Nonvested/Outstanding (in shares) | 623,788 |
Exercisable (in shares) | 623,788 |
Options, warrants and rights | |
Weighted Average Grant Date Fair Value | |
Nonvested/Outstanding Weighted Average Grant Date Fair Value, ending balance (in dollars per share) | $ / shares | $ 14.84 |
Stock Options | |
Weighted-average exercise price of outstanding options, warrants and rights | $ / shares | $ 14.84 |
STOCK BASED AND OTHER COMPENS_6
STOCK BASED AND OTHER COMPENSATION PLANS - Omnibus Incentive Plan (Details) $ in Millions | 1 Months Ended | 3 Months Ended | |||||||
Feb. 18, 2023 USD ($) shares | May 10, 2022 USD ($) installment shares | Feb. 18, 2022 USD ($) shares | Jan. 31, 2022 USD ($) shares | Feb. 28, 2023 installment | Jan. 31, 2022 shares | Mar. 31, 2023 USD ($) shares | Mar. 31, 2022 shares | Jan. 01, 2022 installment | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Aggregate value of awards granted | $ | $ 8.5 | $ 18 | |||||||
Period of recognition for unrecognized compensation costs | 35 months | ||||||||
Unrecognized compensation cost | $ | $ 19.2 | ||||||||
2014 Omnibus Incentive Plan | Performance Based Vesting and Catch-up Provision | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting percentage | 66.67% | ||||||||
Restricted Stock | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Granted (in shares) | 1,417,561 | ||||||||
Forfeited (in shares) | 32,446 | ||||||||
Restricted Stock | Class A Common Stock | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Granted (in shares) | 1,417,561 | 2,843,340 | |||||||
Management Grantees | 2014 Omnibus Incentive Plan | Ms. McCormack and Mr. Perelman | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Number of shares of unrestricted stock | 66.67% | ||||||||
Management Grantees | 2014 Omnibus Incentive Plan | Time-Based Vesting | Mr. Miceli and Ms. Porcella | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting percentage | 33.33% | ||||||||
Management Grantees | 2014 Omnibus Incentive Plan | Performance Based Vesting | Mr. Miceli and Ms. Porcella | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting percentage | 33.33% | ||||||||
Management Grantees | 2014 Omnibus Incentive Plan | Performance Based Vesting and Catch-up Provision | Ms. McCormack and Mr. Perelman | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting percentage | 33.33% | ||||||||
Management Grantees | 2014 Omnibus Incentive Plan | Performance Based Vesting and Catch-up Provision | Mr. Miceli and Ms. Porcella | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting percentage | 33.33% | ||||||||
Management Grantees | 2014 Omnibus Incentive Plan | Class A Common Stock | Ms. McCormack and Mr. Perelman | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Number of shares of unrestricted stock | 50% | ||||||||
Management Grantees | 2014 Omnibus Incentive Plan | Class A Common Stock | Time-Based Vesting | Mr. Miceli and Ms. Porcella | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting percentage | 50% | ||||||||
Management Grantees | 2014 Omnibus Incentive Plan | Class A Common Stock | Performance Based Vesting | Mr. Miceli and Ms. Porcella | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting percentage | 50% | ||||||||
Management Grantees | 2014 Omnibus Incentive Plan | Class A Common Stock | Performance Based Vesting and Catch-up Provision | Ms. McCormack and Mr. Perelman | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting percentage | 50% | ||||||||
Management Grantees | Restricted Stock | Class A Common Stock | Time and Performance Based Vesting | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Aggregate value of awards granted | $ | $ 1.2 | $ 2.5 | |||||||
Management Grantees | Restricted Stock | 2014 Omnibus Incentive Plan | Performance Based Vesting | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Minimum performance target percentage | 8% | ||||||||
Performance period | 3 years | ||||||||
Management Grantees | Restricted Stock | 2014 Omnibus Incentive Plan | Class A Common Stock | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Granted (in shares) | 733,607 | 1,517,627 | |||||||
Management Grantees | Restricted Stock | 2014 Omnibus Incentive Plan | Class A Common Stock | Time and Performance Based Vesting | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Granted (in shares) | 101,344 | 210,662 | |||||||
Non-Management Grantee | Mr. Miceli and Ms. Porcella | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Unrestricted shares granted (in shares) | 19,558 | 264,704 | |||||||
Non-Management Grantee | Time-Based Vesting | Other Non-ManagementGrantees | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Shares granted with certain vesting rights (in shares) | 306,162 | 497,169 | |||||||
Non-Management Grantee | Performance Based Vesting | Other Non-ManagementGrantees | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Shares granted with certain vesting rights (in shares) | 325,709 | 531,980 | |||||||
Non-Management Grantee | Restricted Stock | Class A Common Stock | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Aggregate value of awards granted | $ | $ 7.5 | $ 15.4 | |||||||
Granted (in shares) | 651,429 | 1,293,853 | |||||||
Non-Management Grantee | Restricted Stock | 2014 Omnibus Incentive Plan | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Number of installments | installment | 3 | 3 | |||||||
Board of Directors | Restricted Stock | Class A Common Stock | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting period | 1 year | 1 year | |||||||
Granted (in shares) | 32,525 | 31,860 | |||||||
Grant date fair value | $ | $ 0.4 | $ 0.4 | |||||||
Employee | Restricted Stock | 2014 Omnibus Incentive Plan | Class A Common Stock | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Granted (in shares) | 33,784 | ||||||||
Grant date fair value | $ | $ 0.4 | ||||||||
Employee | Restricted Stock | 2014 Omnibus Incentive Plan | Class A Common Stock | Time-Based Vesting | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Number of installments | installment | 3 | ||||||||
Vesting percentage | 50% | ||||||||
Employee | Restricted Stock | 2014 Omnibus Incentive Plan | Class A Common Stock | Performance Based Vesting | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Number of installments | installment | 3 | ||||||||
Vesting percentage | 50% |
FAIR VALUE OF FINANCIAL INSTR_3
FAIR VALUE OF FINANCIAL INSTRUMENTS - Estimated Fair Values of Financial Instruments (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Mar. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Assets: | ||||
Fair Value | $ 3,352,969 | $ 3,922,131 | ||
Allowance for credit losses | (25,499) | (20,755) | $ (32,332) | $ (31,752) |
Liabilities: | ||||
Fair Value | 3,739,091 | 3,994,458 | ||
Level 1 | ||||
Assets: | ||||
Fair Value | 0 | 0 | ||
Liabilities: | ||||
Fair Value | 0 | 0 | ||
Level 2 | ||||
Assets: | ||||
Fair Value | 0 | 0 | ||
Liabilities: | ||||
Fair Value | 0 | 0 | ||
Level 3 | ||||
Assets: | ||||
Fair Value | 3,352,969 | 3,922,131 | ||
Liabilities: | ||||
Fair Value | $ 3,739,091 | $ 3,994,458 | ||
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 | |||
Recurring | ||||
Assets: | ||||
Fair Value | $ 512,053 | $ 580,130 | ||
Recurring | Level 1 | ||||
Assets: | ||||
Fair Value | 24,885 | 35,446 | ||
Recurring | Level 2 | ||||
Assets: | ||||
Fair Value | 1,421 | 2,038 | ||
Recurring | Level 3 | ||||
Assets: | ||||
Fair Value | 485,747 | 542,646 | ||
Recurring | Agency securities | ||||
Assets: | ||||
Principal Amount | 32 | 36 | ||
Fair Value | 31 | 35 | ||
Recurring | Agency securities | Level 1 | ||||
Assets: | ||||
Fair Value | 0 | 0 | ||
Recurring | Agency securities | Level 2 | ||||
Assets: | ||||
Fair Value | 0 | 0 | ||
Recurring | Agency securities | Level 3 | ||||
Assets: | ||||
Fair Value | 31 | 35 | ||
Recurring | CMBS | Internal Model Third Party Inputs Valuation Technique | ||||
Assets: | ||||
Principal Amount | 503,183 | 562,839 | ||
Amortized Cost Basis/Purchase Price | 502,710 | 562,246 | ||
Fair Value | $ 485,191 | $ 541,333 | ||
Liabilities: | ||||
Financial instruments, measurement input | 0.0576 | 0.0532 | ||
Weighted average remaining maturity/duration | 1 year 3 days | 1 year 21 days | ||
Recurring | CMBS interest-only | Internal Model Third Party Inputs Valuation Technique | ||||
Assets: | ||||
Principal Amount | $ 898,620 | $ 1,026,195 | ||
Amortized Cost Basis/Purchase Price | 9,493 | 10,498 | ||
Fair Value | $ 9,537 | $ 10,443 | ||
Liabilities: | ||||
Financial instruments, measurement input | 0.0382 | 0.0365 | ||
Weighted average remaining maturity/duration | 1 year 4 months 13 days | 1 year 5 months 12 days | ||
Recurring | GNMA interest-only | Internal Model Third Party Inputs Valuation Technique | ||||
Assets: | ||||
Principal Amount | $ 44,966 | $ 45,369 | ||
Amortized Cost Basis/Purchase Price | 265 | 285 | ||
Fair Value | $ 385 | $ 281 | ||
Liabilities: | ||||
Financial instruments, measurement input | 0.0595 | 0.0423 | ||
Weighted average remaining maturity/duration | 3 years 1 month 2 days | 3 years 3 months 18 days | ||
Recurring | Agency securities | Internal Model Third Party Inputs Valuation Technique | ||||
Assets: | ||||
Principal Amount | $ 32 | $ 36 | ||
Amortized Cost Basis/Purchase Price | 33 | 36 | ||
Fair Value | $ 31 | $ 35 | ||
Liabilities: | ||||
Financial instruments, measurement input | 0.0270 | 0.0270 | ||
Weighted average remaining maturity/duration | 1 year 5 months 1 day | 1 year 6 months 14 days | ||
Recurring | U.S. Treasury securities | Internal Model Third Party Inputs Valuation Technique | ||||
Assets: | ||||
Principal Amount | $ 25,000 | $ 36,000 | ||
Amortized Cost Basis/Purchase Price | 24,772 | 35,328 | ||
Fair Value | $ 24,772 | $ 35,328 | ||
Liabilities: | ||||
Financial instruments, measurement input | 0.0410 | 0.0417 | ||
Weighted average remaining maturity/duration | 3 months 14 days | 7 months 6 days | ||
Recurring | Equity Securities | ||||
Assets: | ||||
Amortized Cost Basis/Purchase Price | $ 160 | $ 160 | ||
Fair Value | 113 | 118 | ||
Recurring | Total mortgage loan receivables held for investment, net, at amortized cost | Discounted Cash Flow | ||||
Assets: | ||||
Principal Amount | 3,809,591 | 3,907,295 | ||
Amortized Cost Basis/Purchase Price | 3,794,075 | 3,885,746 | ||
Fair Value | 3,306,791 | 3,875,708 | ||
Allowance for credit losses | $ (25,500) | $ (20,800) | $ (20,800) | |
Liabilities: | ||||
Financial instruments, measurement input | 0.0918 | 0.0885 | ||
Weighted average remaining maturity/duration | 1 year 25 days | 1 year 3 months 3 days | ||
Recurring | Mortgage loan receivables held for sale | Internal Model Third Party Inputs Valuation Technique | ||||
Assets: | ||||
Principal Amount | $ 31,350 | $ 31,350 | ||
Amortized Cost Basis/Purchase Price | 27,197 | 27,391 | ||
Fair Value | $ 27,197 | $ 27,391 | ||
Liabilities: | ||||
Financial instruments, measurement input | 0.0457 | 0.0457 | ||
Weighted average remaining maturity/duration | 8 years 11 months 8 days | 9 years 2 months 8 days | ||
Recurring | FHLB stock | FHLB stock | ||||
Assets: | ||||
Principal Amount | $ 9,585 | $ 9,585 | ||
Amortized Cost Basis/Purchase Price | 9,585 | 9,585 | ||
Fair Value | $ 9,585 | $ 9,585 | ||
Liabilities: | ||||
Financial instruments, measurement input | 0.0475 | 0.0475 | ||
Recurring | Nonhedge derivatives | Counterparty Quotations Valuation Technique | ||||
Assets: | ||||
Nonhedge derivative assets | $ 106,408 | $ 204,700 | ||
Amortized Cost Basis/Purchase Price | 1,421 | 2,038 | ||
Fair Value | $ 1,421 | $ 2,038 | ||
Liabilities: | ||||
Weighted average remaining maturity/duration | 1 year 5 months 1 day | 1 year 6 months 7 days | ||
Recurring | Repurchase agreements - short-term | Cost Plus Accrued Interest Valuation Technique | ||||
Liabilities: | ||||
Principal Amount | $ 402,869 | $ 481,465 | ||
Amortized Cost Basis/Purchase Price | 402,869 | 481,465 | ||
Fair Value | $ 402,869 | $ 481,465 | ||
Financial instruments, measurement input | 0.0576 | 0.0404 | ||
Weighted average remaining maturity/duration | 6 months 10 days | 4 months 13 days | ||
Recurring | Repurchase agreements - long-term | Discounted Cash Flow | ||||
Liabilities: | ||||
Principal Amount | $ 366,398 | $ 366,398 | ||
Amortized Cost Basis/Purchase Price | 366,398 | 366,398 | ||
Fair Value | $ 366,398 | $ 366,398 | ||
Financial instruments, measurement input | 0.0577 | 0.0406 | ||
Weighted average remaining maturity/duration | 2 years 3 months 21 days | 2 years 6 months 21 days | ||
Recurring | Mortgage loan financing | Discounted Cash Flow | ||||
Liabilities: | ||||
Principal Amount | $ 469,121 | $ 497,454 | ||
Amortized Cost Basis/Purchase Price | 469,690 | 497,991 | ||
Fair Value | $ 453,300 | $ 477,101 | ||
Financial instruments, measurement input | 0.0568 | 0.0551 | ||
Weighted average remaining maturity/duration | 3 years 3 months 21 days | 3 years 4 months 9 days | ||
Recurring | CLO debt | Discounted Cash Flow | ||||
Liabilities: | ||||
Principal Amount | $ 1,064,365 | $ 1,064,365 | ||
Amortized Cost Basis/Purchase Price | 1,059,593 | 1,058,462 | ||
Fair Value | $ 1,059,593 | $ 1,058,462 | ||
Financial instruments, measurement input | 0.0700 | 0.0635 | ||
Weighted average remaining maturity/duration | 15 years 8 months 4 days | 15 years 11 months 1 day | ||
Recurring | Borrowings from the FHLB | Discounted Cash Flow | ||||
Liabilities: | ||||
Principal Amount | $ 213,000 | $ 213,000 | ||
Amortized Cost Basis/Purchase Price | 213,000 | 213,000 | ||
Fair Value | $ 212,911 | $ 213,055 | ||
Financial instruments, measurement input | 0.0121 | 0.0161 | ||
Weighted average remaining maturity/duration | 1 year | 1 year 3 months | ||
Recurring | Senior unsecured notes | Internal Model Third Party Inputs Valuation Technique | ||||
Liabilities: | ||||
Principal Amount | $ 1,585,063 | $ 1,643,794 | ||
Amortized Cost Basis/Purchase Price | 1,570,878 | 1,628,382 | ||
Fair Value | $ 1,244,020 | $ 1,397,977 | ||
Financial instruments, measurement input | 0.0466 | 0.0466 | ||
Weighted average remaining maturity/duration | 4 years 6 months 10 days | 4 years 9 months |
FAIR VALUE OF FINANCIAL INSTR_4
FAIR VALUE OF FINANCIAL INSTRUMENTS - Summary of Financial Assets and Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Assets: | ||
Fair value of assets | $ 3,352,969 | $ 3,922,131 |
Liabilities: | ||
Fair value of liabilities | 3,739,091 | 3,994,458 |
Repurchase agreements - short-term | ||
Liabilities: | ||
Principal Amount | 402,869 | 481,465 |
Fair value of liabilities | 402,869 | 481,465 |
Repurchase agreements - long-term | ||
Liabilities: | ||
Principal Amount | 366,398 | 366,398 |
Fair value of liabilities | 366,398 | 366,398 |
Mortgage loan financing | ||
Liabilities: | ||
Principal Amount | 469,121 | 497,454 |
Fair value of liabilities | 453,300 | 477,101 |
CLO debt | ||
Liabilities: | ||
Principal Amount | 1,064,365 | 1,064,365 |
Fair value of liabilities | 1,059,593 | 1,058,462 |
Borrowings from the FHLB | ||
Liabilities: | ||
Principal Amount | 213,000 | 213,000 |
Fair value of liabilities | 212,911 | 213,055 |
Senior unsecured notes | ||
Liabilities: | ||
Principal Amount | 1,585,063 | 1,643,794 |
Fair value of liabilities | 1,244,020 | 1,397,977 |
CMBS | ||
Assets: | ||
Principal Amount | 9,381 | 9,415 |
Fair value of assets | 9,009 | 9,030 |
CMBS interest-only | ||
Assets: | ||
Principal Amount | 8,426 | 8,460 |
Fair value of assets | 387 | 417 |
Total mortgage loan receivables held for investment, net, at amortized cost | ||
Assets: | ||
Principal Amount | 3,809,591 | 3,907,295 |
Fair value of assets | 3,306,791 | 3,875,708 |
FHLB stock | ||
Assets: | ||
Principal Amount | 9,585 | 9,585 |
Fair value of assets | 9,585 | 9,585 |
Mortgage loan receivables held for sale | ||
Assets: | ||
Principal Amount | 31,350 | 31,350 |
Fair value of assets | 27,197 | 27,391 |
Level 1 | ||
Assets: | ||
Fair value of assets | 0 | 0 |
Liabilities: | ||
Fair value of liabilities | 0 | 0 |
Level 1 | Repurchase agreements - short-term | ||
Liabilities: | ||
Fair value of liabilities | 0 | 0 |
Level 1 | Repurchase agreements - long-term | ||
Liabilities: | ||
Fair value of liabilities | 0 | 0 |
Level 1 | Mortgage loan financing | ||
Liabilities: | ||
Fair value of liabilities | 0 | 0 |
Level 1 | CLO debt | ||
Liabilities: | ||
Fair value of liabilities | 0 | 0 |
Level 1 | 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 | FHLB stock | ||
Assets: | ||
Fair value of assets | 0 | 0 |
Level 1 | Mortgage loan receivables held for sale | ||
Assets: | ||
Fair value of assets | 0 | 0 |
Level 2 | ||
Assets: | ||
Fair value of assets | 0 | 0 |
Liabilities: | ||
Fair value of liabilities | 0 | 0 |
Level 2 | Repurchase agreements - short-term | ||
Liabilities: | ||
Fair value of liabilities | 0 | 0 |
Level 2 | Repurchase agreements - long-term | ||
Liabilities: | ||
Fair value of liabilities | 0 | 0 |
Level 2 | Mortgage loan financing | ||
Liabilities: | ||
Fair value of liabilities | 0 | 0 |
Level 2 | CLO debt | ||
Liabilities: | ||
Fair value of liabilities | 0 | 0 |
Level 2 | 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 | FHLB stock | ||
Assets: | ||
Fair value of assets | 0 | 0 |
Level 2 | Mortgage loan receivables held for sale | ||
Assets: | ||
Fair value of assets | 0 | 0 |
Level 3 | ||
Assets: | ||
Fair value of assets | 3,352,969 | 3,922,131 |
Liabilities: | ||
Fair value of liabilities | 3,739,091 | 3,994,458 |
Level 3 | Repurchase agreements - short-term | ||
Liabilities: | ||
Fair value of liabilities | 402,869 | 481,465 |
Level 3 | Repurchase agreements - long-term | ||
Liabilities: | ||
Fair value of liabilities | 366,398 | 366,398 |
Level 3 | Mortgage loan financing | ||
Liabilities: | ||
Fair value of liabilities | 453,300 | 477,101 |
Level 3 | CLO debt | ||
Liabilities: | ||
Fair value of liabilities | 1,059,593 | 1,058,462 |
Level 3 | Borrowings from the FHLB | ||
Liabilities: | ||
Fair value of liabilities | 212,911 | 213,055 |
Level 3 | Senior unsecured notes | ||
Liabilities: | ||
Fair value of liabilities | 1,244,020 | 1,397,977 |
Level 3 | CMBS | ||
Assets: | ||
Fair value of assets | 9,009 | 9,030 |
Level 3 | CMBS interest-only | ||
Assets: | ||
Fair value of assets | 387 | 417 |
Level 3 | Total mortgage loan receivables held for investment, net, at amortized cost | ||
Assets: | ||
Fair value of assets | 3,306,791 | 3,875,708 |
Level 3 | FHLB stock | ||
Assets: | ||
Fair value of assets | 9,585 | 9,585 |
Level 3 | Mortgage loan receivables held for sale | ||
Assets: | ||
Fair value of assets | 27,197 | 27,391 |
Recurring | ||
Assets: | ||
Fair value of assets | 512,053 | 580,130 |
Recurring | CMBS | ||
Assets: | ||
Principal Amount | 493,802 | 553,424 |
Fair value of assets | 476,181 | 532,304 |
Recurring | CMBS interest-only | ||
Assets: | ||
Principal Amount | 890,193 | 1,017,735 |
Fair value of assets | 9,150 | 10,026 |
Recurring | GNMA interest-only | ||
Assets: | ||
Principal Amount | 44,966 | 45,369 |
Fair value of assets | 385 | 281 |
Recurring | Agency securities | ||
Assets: | ||
Principal Amount | 32 | 36 |
Fair value of assets | 31 | 35 |
Recurring | Equity Securities | ||
Assets: | ||
Fair value of assets | 113 | 118 |
Recurring | U.S. Treasury securities | ||
Assets: | ||
Principal Amount | 25,000 | 36,000 |
Fair value of assets | 24,772 | 35,328 |
Recurring | Nonhedge derivatives | ||
Assets: | ||
Principal Amount | 106,408 | 204,700 |
Fair value of assets | 1,421 | 2,038 |
Recurring | Level 1 | ||
Assets: | ||
Fair value of assets | 24,885 | 35,446 |
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 | Equity Securities | ||
Assets: | ||
Fair value of assets | 113 | 118 |
Recurring | Level 1 | U.S. Treasury securities | ||
Assets: | ||
Fair value of assets | 24,772 | 35,328 |
Recurring | Level 1 | Nonhedge derivatives | ||
Assets: | ||
Fair value of assets | 0 | 0 |
Recurring | Level 2 | ||
Assets: | ||
Fair value of assets | 1,421 | 2,038 |
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 | Equity Securities | ||
Assets: | ||
Fair value of assets | 0 | 0 |
Recurring | Level 2 | U.S. Treasury securities | ||
Assets: | ||
Fair value of assets | 0 | 0 |
Recurring | Level 2 | Nonhedge derivatives | ||
Assets: | ||
Fair value of assets | 1,421 | 2,038 |
Recurring | Level 3 | ||
Assets: | ||
Fair value of assets | 485,747 | 542,646 |
Recurring | Level 3 | CMBS | ||
Assets: | ||
Fair value of assets | 476,181 | 532,304 |
Recurring | Level 3 | CMBS interest-only | ||
Assets: | ||
Fair value of assets | 9,150 | 10,026 |
Recurring | Level 3 | GNMA interest-only | ||
Assets: | ||
Fair value of assets | 385 | 281 |
Recurring | Level 3 | Agency securities | ||
Assets: | ||
Fair value of assets | 31 | 35 |
Recurring | Level 3 | Equity Securities | ||
Assets: | ||
Fair value of assets | 0 | 0 |
Recurring | Level 3 | U.S. Treasury securities | ||
Assets: | ||
Fair value of assets | 0 | 0 |
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 | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | $ 542,646 | $ 692,864 |
Transfer from level 2 | 0 | 0 |
Purchases | 546 | 29,603 |
Sales | (10,689) | (4,261) |
Paydowns/maturities | (49,180) | (57,489) |
Amortization of premium/discount | (880) | (1,326) |
Unrealized gain/(loss) | 3,616 | (6,638) |
Realized gain/(loss) on sale | (312) | (103) |
Ending balance | $ 485,747 | $ 652,650 |
Fair value, recurring basis, unobservable input reconciliation, asset, gain (loss) statement of other comprehensive income, extensible list, not disclosed, flag | Unrealized gain/(loss) | |
Fair value, recurring basis, unobservable input reconciliation, asset, gain (loss) statement of income, extensible list, not disclosed, flag | Realized gain/(loss) on sale |
FAIR VALUE OF FINANCIAL INSTR_6
FAIR VALUE OF FINANCIAL INSTRUMENTS - Schedule of Quantitative Information (Details) $ in Thousands | Mar. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Carrying Value | $ 519,895 | $ 587,400 |
CMBS | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Carrying Value | 485,191 | 541,333 |
CMBS interest-only | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Carrying Value | 9,537 | 10,443 |
GNMA interest-only | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Carrying Value | 384 | 281 |
Agency securities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Carrying Value | 31 | 35 |
Level 3 | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Carrying Value | $ 485,747 | $ 542,646 |
Level 3 | Valuation Technique, Discounted Cash Flow | Yield | CMBS | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 0.0288 | 0.0289 |
Level 3 | Valuation Technique, Discounted Cash Flow | Yield | CMBS | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 0.0567 | 0.0529 |
Level 3 | Valuation Technique, Discounted Cash Flow | Yield | CMBS | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 0.1769 | 0.1747 |
Level 3 | Valuation Technique, Discounted Cash Flow | Yield | CMBS interest-only | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 0.0256 | 0.0139 |
Level 3 | Valuation Technique, Discounted Cash Flow | Yield | CMBS interest-only | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 0.0285 | 0.0372 |
Level 3 | Valuation Technique, Discounted Cash Flow | Yield | CMBS interest-only | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 0.2262 | 0.1966 |
Level 3 | Valuation Technique, Discounted Cash Flow | Yield | GNMA interest-only | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 0.0128 | 0.0128 |
Level 3 | Valuation Technique, Discounted Cash Flow | Yield | GNMA interest-only | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 0.0595 | 0.0550 |
Level 3 | Valuation Technique, Discounted Cash Flow | Yield | GNMA interest-only | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 0.1000 | 0.1000 |
Level 3 | Valuation Technique, Discounted Cash Flow | Yield | Agency securities | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 0.0270 | 0.0270 |
Level 3 | Valuation Technique, Discounted Cash Flow | Yield | Agency securities | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 0.0270 | 0.0270 |
Level 3 | Valuation Technique, Discounted Cash Flow | Yield | Agency securities | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 0.0270 | 0.0270 |
Recurring | Level 3 | CMBS | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Carrying Value | $ 476,181 | $ 532,304 |
Recurring | Level 3 | CMBS interest-only | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Carrying Value | 9,150 | 10,026 |
Recurring | Level 3 | GNMA interest-only | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Carrying Value | 385 | 281 |
Recurring | Level 3 | Agency securities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Carrying Value | $ 31 | $ 35 |
INCOME TAXES - Additional Infor
INCOME TAXES - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | Apr. 30, 2023 | Dec. 31, 2022 | |
Income Tax Contingency [Line Items] | ||||
Income tax expense (benefit) | $ 0.9 | $ (0.9) | ||
Deferred income tax expense (benefit) | 0.8 | $ (0.4) | ||
Deferred tax asset related to capital losses | 4.5 | |||
Deferred tax assets related to interest expense limitation | 1.4 | |||
Incremental income tax expense due to audit | 0.2 | |||
Subsequent Event | ||||
Income Tax Contingency [Line Items] | ||||
Settlement pertaining to audit | $ 2.6 | |||
Other assets | ||||
Income Tax Contingency [Line Items] | ||||
Deferred tax liabilities | (2.6) | $ (1.8) | ||
Accrued Liabilities | ||||
Income Tax Contingency [Line Items] | ||||
Liability for unrecognized tax benefits for uncertain income tax positions | $ 2.6 | $ 2.4 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Unfunded Loan Commitments | |||
Lease liabilities | $ 16,233 | ||
Operating lease, right-of-use asset | $ 15,500 | ||
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Other liabilities | ||
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other assets | ||
Operating expenses | $ 500 | $ 300 | |
Treasury bills traded and not yet settled | 109,717 | $ 0 | |
Provision for loan losses | |||
Unfunded Loan Commitments | |||
Unfunded commitments of mortgage loan receivables held for investment | $ 289,800 | $ 321,800 | |
Length of additional mortgage loan financing | 3 years | ||
Unfunded commitments of mortgage loan receivables held for investment, additional funds | 54% | ||
U.S. Treasury Securities Traded, Not Yet Settled | |||
Unfunded Loan Commitments | |||
Treasury bills traded and not yet settled | $ 109,700 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Future Minimum Operating Lease Obligation (Details) $ in Thousands | Mar. 31, 2023 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2023 (last 9 months) | $ 788 |
2024 | 2,171 |
2025 | 2,207 |
2026 | 2,219 |
2027 | 2,232 |
Thereafter | 13,344 |
Total undiscounted cash flows | 22,961 |
Present value discount | (6,728) |
Lease liabilities | $ 16,233 |
Weighted average incremental borrowing rate | 6.62% |
Remaining lease term | 10 years 3 months 18 days |
SEGMENT REPORTING - Additional
SEGMENT REPORTING - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2023 segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
SEGMENT REPORTING - Schedule of
SEGMENT REPORTING - Schedule of Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | ||
Income Statement [Abstract] | ||||
Interest income | $ 103,796 | $ 56,205 | ||
Interest expense | (60,749) | (47,035) | ||
Net interest income (expense) | 43,047 | 9,170 | ||
(Provision for) release of loan loss reserves | (4,736) | (874) | ||
Net interest income (expense) after provision for (release of) loan losses | 38,311 | 8,296 | ||
Real estate operating income | 23,199 | 26,354 | ||
Net result from mortgage loan receivables held for sale | (194) | (949) | ||
Realized gain (loss) on securities | (307) | (96) | ||
Unrealized gain (loss) on securities | 117 | 17 | ||
Realized gain (loss) on sale of real estate, net | 0 | 29,154 | ||
Fee and other income | 1,831 | 7,194 | ||
Net result from derivative transactions | (2,242) | 3,135 | ||
Earnings from investment in unconsolidated ventures | 217 | 434 | ||
Gain on extinguishment of debt | 9,217 | 0 | ||
Total other income (loss) | 31,838 | 65,243 | ||
Compensation and employee benefits | (22,084) | (29,864) | ||
Operating expenses | (5,256) | (5,508) | ||
Real estate operating expenses | (9,849) | (8,992) | ||
Fee expense | (1,520) | (1,988) | ||
Depreciation and amortization | (7,529) | (9,342) | ||
Total costs and expenses | (46,238) | (55,694) | ||
Income tax (expense) benefit | (1,720) | 1,309 | ||
Net income (loss) | 22,191 | 19,154 | ||
Total assets | [1] | 5,860,526 | $ 5,951,173 | |
Investment in unconsolidated ventures | [1] | 6,336 | 6,219 | |
Investment in FHLB stock | 9,600 | 9,600 | ||
Operating Segment | ||||
Income Statement [Abstract] | ||||
Investment in unconsolidated ventures | 6,300 | 6,200 | ||
Operating Segment | Loans | ||||
Income Statement [Abstract] | ||||
Interest income | 90,874 | 53,120 | ||
Interest expense | (28,728) | (14,283) | ||
Net interest income (expense) | 62,146 | 38,837 | ||
(Provision for) release of loan loss reserves | (4,736) | (874) | ||
Net interest income (expense) after provision for (release of) loan losses | 57,410 | 37,963 | ||
Real estate operating income | 0 | 0 | ||
Net result from mortgage loan receivables held for sale | (194) | (949) | ||
Realized gain (loss) on securities | 0 | 0 | ||
Unrealized gain (loss) on securities | 0 | 0 | ||
Realized gain (loss) on sale of real estate, net | 0 | |||
Fee and other income | 1,681 | 3,377 | ||
Net result from derivative transactions | (1,843) | 2,337 | ||
Earnings from investment in unconsolidated ventures | 0 | 0 | ||
Gain on extinguishment of debt | 0 | |||
Total other income (loss) | (356) | 4,765 | ||
Compensation and employee benefits | 0 | 0 | ||
Operating expenses | 0 | 17 | ||
Real estate operating expenses | 0 | 0 | ||
Fee expense | (967) | (799) | ||
Depreciation and amortization | 0 | 0 | ||
Total costs and expenses | (967) | (782) | ||
Income tax (expense) benefit | 0 | 0 | ||
Net income (loss) | 56,087 | 41,946 | ||
Total assets | 3,795,773 | 3,892,382 | ||
Operating Segment | Securities | ||||
Income Statement [Abstract] | ||||
Interest income | 10,129 | 3,065 | ||
Interest expense | (2,633) | (452) | ||
Net interest income (expense) | 7,496 | 2,613 | ||
(Provision for) release of loan loss reserves | 0 | |||
Net interest income (expense) after provision for (release of) loan losses | 7,496 | 2,613 | ||
Real estate operating income | 0 | 0 | ||
Net result from mortgage loan receivables held for sale | 0 | 0 | ||
Realized gain (loss) on securities | (307) | (96) | ||
Unrealized gain (loss) on securities | 117 | 17 | ||
Realized gain (loss) on sale of real estate, net | 0 | |||
Fee and other income | 4 | 15 | ||
Net result from derivative transactions | (302) | 804 | ||
Earnings from investment in unconsolidated ventures | 0 | 0 | ||
Gain on extinguishment of debt | 0 | |||
Total other income (loss) | (488) | 740 | ||
Compensation and employee benefits | 0 | 0 | ||
Operating expenses | 0 | 0 | ||
Real estate operating expenses | 0 | 0 | ||
Fee expense | (48) | (48) | ||
Depreciation and amortization | 0 | 0 | ||
Total costs and expenses | (48) | (48) | ||
Income tax (expense) benefit | 0 | 0 | ||
Net income (loss) | 6,960 | 3,305 | ||
Total assets | 520,008 | 587,519 | ||
Operating Segment | Real Estate | ||||
Income Statement [Abstract] | ||||
Interest income | 2 | 0 | ||
Interest expense | (6,653) | (11,479) | ||
Net interest income (expense) | (6,651) | (11,479) | ||
(Provision for) release of loan loss reserves | 0 | 0 | ||
Net interest income (expense) after provision for (release of) loan losses | (6,651) | (11,479) | ||
Real estate operating income | 23,199 | 26,354 | ||
Net result from mortgage loan receivables held for sale | 0 | 0 | ||
Realized gain (loss) on securities | 0 | 0 | ||
Unrealized gain (loss) on securities | 0 | 0 | ||
Realized gain (loss) on sale of real estate, net | 29,154 | |||
Fee and other income | 2 | 3,707 | ||
Net result from derivative transactions | (97) | (6) | ||
Earnings from investment in unconsolidated ventures | 217 | 434 | ||
Gain on extinguishment of debt | 0 | |||
Total other income (loss) | 23,321 | 59,643 | ||
Compensation and employee benefits | 0 | 0 | ||
Operating expenses | 0 | 0 | ||
Real estate operating expenses | (9,849) | (8,992) | ||
Fee expense | (93) | (166) | ||
Depreciation and amortization | (7,425) | (9,334) | ||
Total costs and expenses | (17,367) | (18,492) | ||
Income tax (expense) benefit | 0 | 0 | ||
Net income (loss) | (697) | 29,672 | ||
Total assets | 699,601 | 706,355 | ||
Corporate/Other | ||||
Income Statement [Abstract] | ||||
Interest income | 2,791 | 20 | ||
Interest expense | (22,735) | (20,821) | ||
Net interest income (expense) | (19,944) | (20,801) | ||
(Provision for) release of loan loss reserves | 0 | 0 | ||
Net interest income (expense) after provision for (release of) loan losses | (19,944) | (20,801) | ||
Real estate operating income | 0 | 0 | ||
Net result from mortgage loan receivables held for sale | 0 | 0 | ||
Realized gain (loss) on securities | 0 | 0 | ||
Unrealized gain (loss) on securities | 0 | 0 | ||
Realized gain (loss) on sale of real estate, net | 0 | |||
Fee and other income | 144 | 95 | ||
Net result from derivative transactions | 0 | 0 | ||
Earnings from investment in unconsolidated ventures | 0 | 0 | ||
Gain on extinguishment of debt | 9,217 | |||
Total other income (loss) | 9,361 | 95 | ||
Compensation and employee benefits | (22,084) | (29,864) | ||
Operating expenses | (5,256) | (5,525) | ||
Real estate operating expenses | 0 | 0 | ||
Fee expense | (412) | (975) | ||
Depreciation and amortization | (104) | (8) | ||
Total costs and expenses | (27,856) | (36,372) | ||
Income tax (expense) benefit | (1,720) | 1,309 | ||
Net income (loss) | (40,159) | $ (55,769) | ||
Total assets | 845,144 | 764,917 | ||
Corporate/Other | Senior Unsecured Notes | ||||
Income Statement [Abstract] | ||||
Senior notes | $ 1,600,000 | $ 1,600,000 | ||
[1]Includes amounts relating to consolidated variable interest entities. Refer to Note 2 and Note 9. |