Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2024 | Apr. 19, 2024 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
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, $0.001 par value | |
Trading Symbol | LADR | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Smaller Reporting Company | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0001577670 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Class A Common Stock | ||
Entity Common Stock, Shares Outstanding | 127,888,375 | |
Class B Common Stock | ||
Entity Common Stock, Shares Outstanding | 0 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 | |
Assets | |||
Cash and cash equivalents | [1] | $ 1,220,217 | $ 1,015,678 |
Restricted cash | [1] | 12,274 | 15,450 |
Mortgage loan receivables held for investment, net, at amortized cost: | |||
Mortgage loans receivable | [1] | 2,797,945 | 3,155,089 |
Allowance for credit losses | [1] | (49,060) | (43,165) |
Mortgage loan receivables held for sale | [1] | 26,955 | 26,868 |
Securities | [1] | 466,763 | 485,533 |
Real estate and related lease intangibles, net | [1] | 733,635 | 726,442 |
Investments in and advances to unconsolidated ventures | [1] | 6,862 | 6,877 |
Derivative instruments | [1] | 674 | 1,454 |
Accrued interest receivable | [1] | 23,207 | 24,233 |
Other assets | [1] | 83,326 | 98,218 |
Total assets | [1] | 5,322,798 | 5,512,677 |
Liabilities | |||
Debt obligations, net | [1] | 3,667,029 | 3,783,946 |
Dividends payable | [1] | 30,721 | 32,294 |
Accrued expenses | [1] | 45,603 | 65,144 |
Other liabilities | [1] | 55,560 | 99,095 |
Total liabilities | [1] | 3,798,913 | 3,980,479 |
Commitments and contingencies | [1] | 0 | 0 |
Equity | |||
Additional paid-in capital | [1] | 1,767,128 | 1,756,750 |
Treasury stock, 1,994,644 and 1,115,789 shares, at cost | [1] | (21,611) | (12,001) |
Retained earnings (dividends in excess of earnings) | [1] | (210,611) | (197,875) |
Accumulated other comprehensive income (loss) | [1] | (9,820) | (13,853) |
Total shareholders’ equity | [1] | 1,525,214 | 1,533,148 |
Noncontrolling interests in consolidated ventures | [1] | (1,329) | (950) |
Total equity | [1] | 1,523,885 | 1,532,198 |
Total liabilities and equity | [1] | 5,322,798 | 5,512,677 |
Class A Common Stock | |||
Equity | |||
Class A common stock, par value $0.001 per share, 600,000,000 shares authorized; 129,883,019 and 128,027,478 shares issued and 127,888,375 and 126,911,689 shares outstanding as of March 31, 2024 and December 31, 2023, respectively. | [1] | $ 128 | $ 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, 2024 | Dec. 31, 2023 |
Treasury stock (in shares) | 1,994,644 | 1,115,789 |
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) | 129,883,019 | 128,027,478 |
Common stock, outstanding (in shares) | 127,888,375 | 126,911,689 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Net interest income | ||
Interest income | $ 95,912 | $ 103,796 |
Interest expense | 58,771 | 60,749 |
Net interest income (expense) | 37,141 | 43,047 |
Provision for (release of) loan loss reserves, net | 5,768 | 4,736 |
Net interest income (expense) after provision for (release of) loan loss reserves | 31,373 | 38,311 |
Other income (loss) | ||
Real estate operating income | 23,887 | 23,199 |
Net result from mortgage loan receivables held for sale | 87 | (194) |
Fee and other income | 3,700 | 1,641 |
Net result from derivative transactions | 4,019 | (2,242) |
Earnings (loss) from investment in unconsolidated ventures | (15) | 217 |
Gain on extinguishment of debt | 177 | 9,217 |
Total other income (loss) | 31,855 | 31,838 |
Costs and expenses | ||
Compensation and employee benefits | 20,789 | 22,084 |
Operating expenses | 4,643 | 5,256 |
Real estate operating expenses | 9,146 | 9,849 |
Investment related expenses | 1,993 | 1,520 |
Depreciation and amortization | 8,302 | 7,529 |
Total costs and expenses | 44,873 | 46,238 |
Income (loss) before taxes | 18,355 | 23,911 |
Income tax expense (benefit) | 1,925 | 1,720 |
Net income (loss) | 16,430 | 22,191 |
Net (income) loss attributable to noncontrolling interests in consolidated ventures | $ 179 | $ 217 |
Earnings per share: | ||
Basic (in dollars per share) | $ 0.13 | $ 0.18 |
Diluted (in dollars per share) | $ 0.13 | $ 0.18 |
Weighted average shares outstanding: | ||
Basic (in shares) | 125,315,765 | 124,493,132 |
Diluted (in shares) | 125,520,373 | 124,656,102 |
Class A Common Stock | ||
Costs and expenses | ||
Net income (loss) attributable to Class A common shareholders | $ 16,609 | $ 22,408 |
Earnings per share: | ||
Basic (in dollars per share) | $ 0.13 | $ 0.18 |
Diluted (in dollars per share) | $ 0.13 | $ 0.18 |
Weighted average shares outstanding: | ||
Basic (in shares) | 125,315,765 | 124,493,132 |
Diluted (in shares) | 125,520,373 | 124,656,102 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Net income (loss) | $ 16,430 | $ 22,191 |
Gain (loss) on available for sale securities, net of tax: | ||
Unrealized gain (loss) on securities, available for sale | 4,054 | 3,173 |
Reclassification adjustment for (gain) loss included in net income (loss) | (21) | 312 |
Total other comprehensive income (loss) | 4,033 | 3,485 |
Comprehensive income (loss) | 20,463 | 25,676 |
Comprehensive (income) loss attributable to noncontrolling interest in consolidated ventures | 179 | 217 |
Class A Common Stock | ||
Gain (loss) on available for sale securities, net of tax: | ||
Comprehensive income (loss) attributable to Class A common shareholders | $ 20,642 | $ 25,893 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) $ in Thousands | Total | Class A Common Stock | Treasury Stock | Class A 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, 2022 | 126,502,000 | |||||||||
Beginning Balance at Dec. 31, 2022 | $ 1,533,561 | $ 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 | |||||||||
Shares acquired to satisfy minimum required federal and state tax withholding on vesting restricted stock (in shares) | (689,000) | |||||||||
Shares acquired to satisfy minimum required federal and state tax withholding on vesting restricted stock | $ (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 | 126,948,000 | |||||||||
Ending Balance at Mar. 31, 2023 | 1,528,554 | $ 127 | 1,835,957 | (105,738) | (183,755) | (17,524) | (513) | |||
Beginning Balance (in shares) at Dec. 31, 2023 | 126,911,689 | 126,912,000 | ||||||||
Beginning Balance at Dec. 31, 2023 | 1,532,198 | [1] | $ 127 | 1,756,750 | (12,001) | (197,875) | (13,853) | (950) | ||
Increase Decrease in Stockholders' Equity | ||||||||||
Distributions | (200) | (200) | ||||||||
Amortization of equity based compensation | 10,298 | 10,298 | ||||||||
Grants of restricted stock (in shares) | 1,856,000 | |||||||||
Grants of restricted stock | 2 | $ 2 | ||||||||
Purchase of treasury stock (in shares) | (60,000) | |||||||||
Purchase of treasury stock | (647) | (647) | ||||||||
Shares acquired to satisfy minimum required federal and state tax withholding on vesting restricted stock (in shares) | (813,000) | |||||||||
Shares acquired to satisfy minimum required federal and state tax withholding on vesting restricted stock | (8,884) | $ (1) | (8,883) | |||||||
Forfeitures (in shares) | (7,000) | |||||||||
Forfeitures | 0 | 80 | (80) | |||||||
Dividends declared | (29,345) | (29,345) | ||||||||
Net income (loss) | 16,430 | 16,609 | (179) | |||||||
Other comprehensive income (loss) | 4,033 | 4,033 | ||||||||
Ending Balance (in shares) at Mar. 31, 2024 | 127,888,375 | 127,888,000 | ||||||||
Ending Balance at Mar. 31, 2024 | $ 1,523,885 | [1] | $ 128 | $ 1,767,128 | $ (21,611) | $ (210,611) | $ (9,820) | $ (1,329) | ||
[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 - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | ||
Cash flows from operating activities: | |||
Net income (loss) | $ 16,430 | $ 22,191 | |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||
(Gain) loss on extinguishment of debt | (177) | (9,217) | |
Depreciation and amortization | 8,302 | 7,529 | |
Non-cash operating lease expense | 17 | 538 | |
Unrealized (gain) loss on derivative instruments | 780 | 373 | |
Provision for (release of) loan loss reserves | 5,768 | 4,736 | |
Amortization of equity based compensation | 10,298 | 9,124 | |
Amortization of deferred financing costs included in interest expense | 2,999 | 3,580 | |
Amortization of premium/discount on mortgage loan financing included in interest expense | (151) | (150) | |
Amortization of above- and below-market lease intangibles | (432) | (454) | |
(Accretion)/amortization of discount, premium and other fees on loans | (4,040) | (6,985) | |
(Accretion)/amortization of discount and premium on securities | (306) | (501) | |
Net result from mortgage loan receivables held for sale | (87) | 194 | |
Realized (gain) loss on securities | (53) | 307 | |
Realized (gain) loss on sale of derivative instruments | 0 | 244 | |
(Earnings) loss from investments in unconsolidated ventures in excess of distributions received | 15 | (117) | |
Change in deferred tax asset (liability) | 1,344 | 827 | |
Changes in operating assets and liabilities: | |||
Accrued interest receivable | 1,026 | (856) | |
Other assets | 1,213 | 1,902 | |
Accrued expenses and other liabilities | (63,321) | 78,145 | |
Net cash provided by (used in) operating activities | (20,375) | 111,410 | |
Cash flows from investing activities: | |||
Origination and funding of mortgage loan receivables held for investment | (48,702) | (32,616) | |
Repayment of mortgage loan receivables held for investment | 362,854 | 150,186 | |
Purchases of securities | (70,603) | (3,513) | |
Repayment of securities | 88,147 | 60,214 | |
Basis recovery of interest-only securities | 888 | 1,024 | |
Proceeds from sales of securities | 4,799 | 13,595 | |
Capital improvements of real estate | (1,373) | (626) | |
Proceeds from FHLB stock | 1,125 | 0 | |
Net cash provided by (used in) investing activities | 337,135 | 188,264 | |
Cash flows from financing activities: | |||
Deferred financing costs paid | (1,321) | (817) | |
Proceeds from borrowings under debt obligations | 80,942 | 601,338 | |
Repayment and repurchase of borrowings under debt obligations | (199,184) | (757,779) | |
Cash dividends paid to Class A common shareholders | (30,918) | (30,356) | |
Capital distributed to noncontrolling interests in consolidated ventures | (200) | (511) | |
Payment of liability assumed in exchange for shares for the minimum withholding taxes on vesting restricted stock | (8,883) | (7,852) | |
Purchase of treasury stock | (647) | (2,285) | |
Net cash provided by (used in) financing activities | (160,211) | (198,262) | |
Net increase (decrease) in cash, cash equivalents and restricted cash | 156,549 | 101,412 | |
Cash, cash equivalents and restricted cash at beginning of period | 1,075,942 | 659,602 | |
Cash, cash equivalents and restricted cash at end of period | 1,232,491 | 761,014 | |
Non-cash investing and financing activities: | |||
Securities and derivatives purchased, not settled | 15 | 0 | |
Repurchase of treasury shares, not settled | 0 | 12 | |
Repayment in transit of mortgage loans receivable held for investment (other assets) | 40,357 | 0 | |
Settlement of mortgage loan receivable held for investment by real estate, net | (14,541) | 0 | |
Real estate acquired in settlement of mortgage loan receivable held for investment, net | 14,110 | 0 | |
Dividends declared, not paid | 30,721 | 30,802 | |
Cash and cash equivalents | 1,220,217 | [1] | 626,139 |
Restricted cash | 12,274 | 25,158 | |
Short-term unsettled U.S. Treasury securities classified in other assets on the consolidated balance sheet | 0 | 109,717 | |
Total cash, cash equivalents and restricted cash shown in the consolidated statement of cash flows | $ 1,232,491 | $ 761,014 | |
[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, 2024 | |
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, 2024, 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, 2024 | |
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, 2023, 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 and 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. Allowance 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 supplements its existing credit monitoring and management processes with additional processes to support the calculation of the CECL reserves. 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 offs of aged interest 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. Loans for which the borrower or sponsor is experiencing financial difficulty, and where repayment of the loan is expected substantially through the operation or sale of the underlying collateral, are considered collateral dependent loans. For collateral dependent loans, the Company may elect a practical expedient that allows the Company to measure expected losses based on the difference between the collateral’s fair value and the amortized cost basis of the loan. When the repayment or satisfaction of the loan is dependent on a sale, rather than operations of the collateral, the fair value is adjusted for the estimated costs to sell the collateral. If foreclosure is probable, the Company is required to measure for expected losses using this methodology. The Company generally will use the direct capitalization rate valuation methodology or the sales comparison approach to estimate the fair value of the collateral for loans and in certain cases will obtain external appraisals. Determining fair value of the collateral may take into account a number of assumptions including, but not limited to, cash flow projections, market capitalization rates, discount rates and data regarding recent comparable sales of similar properties. Such assumptions are generally based on current market conditions and are subject to economic and market uncertainties. The Company’s loans are typically collateralized by real estate directly or indirectly. As a result, the Company regularly evaluates the extent and impact of any credit deterioration associated with the performance and/or value of the underlying collateral property as well as the financial and operating capability of the borrower/sponsor on a loan-by-loan basis. Specifically, a property’s operating results and any cash reserves are analyzed and used to assess: (i) whether cash flow from operations is sufficient to cover the debt service requirements currently and into the future; (ii) the ability of the borrower to refinance the loan at maturity; and/or (iii) the property’s liquidation value. The Company also evaluates the financial wherewithal of any loan guarantors as well as the borrower’s competency in managing and operating the properties. In addition, the Company considers the overall economic environment, real estate sector, and geographic submarket in which the collateral property is located. Such impairment analyses are completed and reviewed by asset management and underwriting personnel, who utilize various data sources, including: (i) periodic financial data such as property occupancy, tenant profile, rental rates, operating expenses, the borrowers’ business plan, and capitalization and discount rates; (ii) site inspections; and (iii) current credit spreads and other market data and ultimately presented to management for approval. 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 concessions 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, recovery of principal and coupon interest is doubtful. Interest income on non-accrual loans in which the Company reasonably expects a 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. A loan will be written off when management has determined principal and coupon interest is no longer realizable and deemed non-recoverable. Transfers of Financial Assets For a transfer of financial assets to be considered a sale, the transfer must meet the sale criteria of ASC 860, which, at the time of the transfer, require that the transferred assets qualify as recognized financial assets and the Company surrender control over the assets. Such surrender requires that the assets be isolated from the Company, even in bankruptcy or other receivership, the purchaser have the right to pledge or sell the assets transferred and the Company not have an option or obligation to reacquire the assets. If the sale criteria are not met, the transfer is considered to be a secured borrowing, the assets remain on the Company’s consolidated balance sheets and the sale proceeds are recognized as a liability. In November 2017, the SEC staff indicated that, despite transfer restrictions placed on qualified Third Party Purchasers by the risk retention rules of the Dodd-Frank Act, they would not take exception to a registrant treating transfers of financial instruments in a securitization as sales if the transfers otherwise met all the criteria for sale accounting. The Company believes treatment of such transfers as sales is consistent with the substance of such transactions and, accordingly, reflects such transfers as sales. The Company recognizes gains on sale of loans net of any costs related to that sale. Debt Issued From time to time, a subsidiary of the Company will originate a loan (each, an “inter-segment loan,” and collectively, “inter-segment loans”) to another subsidiary of the Company to finance the purchase of real estate. The mortgage loan receivable and the related obligation do not appear in the Company’s consolidated balance sheets as they are eliminated upon consolidation. Once the Company issues (sells) an inter-segment loan to a third-party securitization trust (for cash), the related mortgage note is recognized as a financing transaction and accounted for under ASC 470. The accounting for the securitization of an inter-segment loan—a financial instrument that has never been recognized in the consolidated financial statements as an asset—is considered a financing transaction under ASC 470, and ASC 835 The periodic securitization of the Company’s mortgage loans involves both inter-segment loans and mortgage loans made to third parties with the latter recognized as financial assets in the Company’s consolidated financial statements as part of an integrated transaction. The Company receives aggregate proceeds equal to the transaction’s all-in securitization value and sales price. In accordance with the guidance under ASC 835, when initially measuring the obligation arising from an inter-segment loan’s securitization, the Company allocates the proceeds from each securitization transaction between the third-party loans and each inter-segment loan so securitized on a relative fair value basis determined in accordance with the guidance in ASC 820. The difference between the amount allocated to each inter-segment loan and the loan’s face amount is recorded as a premium or discount, and is amortized, using the effective interest method, as a reduction or increase in reported interest expense, respectively. Reclassification The Company reclassified realized and unrealized gain (loss) on securities into fee and other income for the three months ended March 31, 2024. As such, the realized loss of $0.3 million and unrealized gain of $0.1 million for the three months ended March 31, 2023 were reclassified into fee and other income on the Consolidated Statement of Income. Refer to Note 4, Securities for realized and unrealized gain/loss details. Certain other prior period amounts have been reclassified to conform to the current period's presentation. Recently Adopted Accounting Pronouncements None. Recent Accounting Pronouncements Pending Adoption In November 2023, the FASB issued ASU 2023-07—Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU 2023-07”). ASU 2023-07 improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024, early adoption is permitted. The amendments should be applied retrospectively to all prior periods presented in the financial statements. Upon transition, the segment expense categories and amounts disclosed in the prior periods should be based on the significant segment expense categories identified and disclosed in the period of adoption. The Company is currently evaluating the impact of the update on the Company’s consolidated financial statements. In December 2023, the FASB issued ASU 2023-09—Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”). ASU 2023-09 improves the transparency of income tax disclosures related to rate reconciliation and income taxes. ASU 2023-07 is effective for annual periods beginning after December 15, 2024. For entities other than public business entities, the amendments are effective for annual periods beginning after December 15, 2025. Early adoption is permitted for annual financial statements that have not yet been issued or made available for issuance. The amendments should be applied prospectively, however retrospective application is permitted. The Company is currently evaluating the impact of the update on the Company’s consolidated financial statements. Any new accounting standards not disclosed above that have been issued or proposed by FASB and that do not require adoption until a future date are being evaluated or 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, 2024 | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Abstract] | |
MORTGAGE LOAN RECEIVABLES | 3. MORTGAGE LOAN RECEIVABLES March 31, 2024 ($ in thousands) Outstanding Carrying Weighted Remaining Mortgage loan receivables held for investment, net, at amortized cost: First mortgage loans $ 2,787,559 $ 2,781,618 9.41 % 0.7 Mezzanine loans 16,360 16,327 11.21 % 1.4 Total mortgage loans receivable 2,803,919 2,797,945 9.42 % 0.7 Allowance for credit losses N/A (49,060) Total mortgage loan receivables held for investment, net, at amortized cost 2,803,919 2,748,885 Mortgage loan receivables held for sale: First mortgage loans 31,350 26,955 (4) 4.57 % 7.9 Total $ 2,835,269 $ 2,775,840 (5) 9.38 % 0.8 (1) Includes the impact of interest rate floors. Term SOFR rates in effect as of March 31, 2024 are used to calculate weighted average yield for floating rate loans. (2) Excludes two non-accrual loans with an amortized cost basis of $72.8 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 1.7 years. (4) As a result of changes in prevailing rates, the Company recorded a reversal of lower of cost or market adjustment as of March 31, 2024. The adjustment was calculated using a 5.28% discount rate. (5) Net of $6.0 million of deferred origination fees and other items as of March 31, 2024. As of March 31, 2024, $2.5 billion, or 87.6%, of the outstanding face amount of the mortgage loan receivables held for investment, net, at amortized cost, were at variable interest rates linked to Term SOFR. Of this $2.5 billion, 100% of these variable interest rate mortgage loan receivables were subject to interest rate floors. As of March 31, 2024, $31.4 million, or 100%, of the outstanding face amount of the mortgage loan receivables held for sale were at fixed interest rates. December 31, 2023 ($ in thousands) Outstanding Carrying Weighted Remaining Mortgage loan receivables held for investment, net, at amortized cost: First mortgage loans $ 3,131,803 $ 3,122,707 9.63 % 0.7 Mezzanine loans 32,423 32,382 11.46 % 0.9 Total mortgage loans receivable 3,164,226 3,155,089 9.65 % 0.7 Allowance for credit losses — (43,165) Total mortgage loan receivables held for investment, net, at amortized cost 3,164,226 3,111,924 Mortgage loan receivables held for sale: First mortgage loans 31,350 26,868 (4) 4.57 % 8.2 Total $ 3,195,576 $ 3,138,792 (5) 9.61 % 0.7 (1) Includes the impact from interest rate floors. Term SOFR rates in effect as of December 31, 2023 are used to calculate weighted average yield for floating rate loans. (2) Excludes one non-accrual loan with an amortized cost basis of $14.5 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 1.8 years. (4) As a result of rising prevailing rates, the Company recorded a lower of cost or market adjustment as of December 31, 2023. The adjustment was calculated using a 5.18% discount rate. (5) Net of $9.1 million of deferred origination fees and other items as of December 31, 2023. As of December 31, 2023, $2.8 billion, or 87.8%, of the outstanding face amount of the mortgage loan receivables held for investment, net, at amortized cost, were at variable interest rates linked to Term SOFR. Of this $2.8 billion, 100.0% of these variable interest rate mortgage loan receivables were subject to interest rate floors. As of December 31, 2023, $31.4 million, or 100%, of the outstanding face amount of the mortgage loan receivables held for sale were at fixed interest rates. For the three months ended March 31, 2024 and 2023, loan portfolio activity was as follows ($ in thousands): Mortgage loan receivables held for investment, net, at amortized cost: Mortgage loans receivable Allowance for credit losses Mortgage loan Balance, December 31, 2023 $ 3,155,089 $ (43,165) $ 26,868 Origination of mortgage loan receivables (1) 48,702 — — Repayment of mortgage loan receivables (2) (395,345) — — Proceeds from sales of mortgage loan receivables (3) — — — Non-cash disposition of loans via foreclosure (4) (14,541) — — Net result from mortgage loan receivables held for sale (5) — — 87 Accretion/amortization of discount, premium and other fees 4,040 — — Release (addition) of provision for current expected credit loss, net (6) — (5,895) — Balance, March 31, 2024 $ 2,797,945 $ (49,060) $ 26,955 (1) Includes funding of commitments on existing mortgage loans. (2) Includes $32.5 million of proceeds received from repayments in transit. (3) Excludes $40.4 million of proceeds received from the sale of conduit mortgage loans collateralized by net leased properties in the Company’s real estate segment to a third-party securitization trust. The mortgage loan receivable and the related obligation do not appear in the Company’s consolidated balance sheets as they are eliminated upon consolidation. Upon the sale of the mortgage loan receivable to a third-party securitization trust (for cash), the related mortgage note is recognized as a financing transaction. (4) Refer to Note 5, Real Estate and Related Lease Intangibles, Net, for further detail on foreclosure of real estate. (5) Includes unrealized lower of cost or market adjustment and realized gain/loss on loans held for sale. (6) 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, 2022 $ 3,885,746 $ (20,755) $ 27,391 Origination of mortgage loan receivables (1) 32,616 — — Repayment of mortgage loan receivables (131,272) — — Net result from mortgage loan receivables held for sale (2) — — (194) Accretion/amortization of discount, premium and other fees 6,985 — — Release (addition) of provision for current expected credit loss, net (3) — (4,744) — Balance, March 31, 2023 $ 3,794,075 $ (25,499) $ 27,197 (1) Includes funding of commitments on existing mortgage loans. (2) Includes unrealized lower of cost or market adjustment and realized gain/loss 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 2024 2023 Allowance for credit losses at beginning of period $ 43,165 $ 20,755 Provision for (release of) current expected credit loss, net (1) 5,895 4,744 Allowance for credit losses at end of period $ 49,060 $ 25,499 (1) There were no asset-specific reserves recorded for the three months ended March 31, 2024 and 2023. Non-Accrual Status (1) March 31, 2024(2) December 31, 2023(3) Amortized cost basis of loans on non-accrual status $ 72,766 $ 14,541 (1) As of March 31, 2024 and December 31, 2023, the loans on non-accrual status were greater than 90 days past due and are considered collateral dependent. (2) Comprised of two multi-family loans with an amortized cost basis of $72.8 million, for which the Company determined no asset-specific reserve was necessary. (3) Comprised of one multi-family loan with an amortized cost basis of $14.5 million, for which the Company determined no asset-specific reserve was necessary. During the year ended December 31, 2023, the Company modified two first mortgage loans with a combined amortized cost basis of $106.5 million as of March 31, 2024, or 3.8% of the Company’s mortgage loan receivable portfolio. Together, these modifications resulted in a weighted average extension of 2.3 years, in exchange for terms that included $6.0 million of payments that reduced the amortized cost basis and $6.5 million of reserve replenishments. No principal or interest was forgiven, and Ladder also received a 15% non-controlling common equity interest in one of the properties. The payment structure of both loans was modified to defer a portion of the contractual interest until maturity and the Company is accruing only the current pay component. As of March 31, 2024, both loans are current. For the three months ended March 31, 2024, the Company accrued $0.8 million of interest income related to these two loans. Current Expected Credit Loss (“CECL”) As of March 31, 2024, the Company has a $49.7 million allowance for current expected credit losses, of which $49.1 million pertains to mortgage loan receivables and $0.6 million relates to unfunded commitments included in other liabilities in the consolidated balance sheets. As of March 31, 2024, the Company concluded that none of its loans required an asset-specific reserve. As of December 31, 2023, the Company had a $43.9 million allowance for current expected credit losses, of which $43.2 million pertained to mortgage loan receivables and $0.7 million related to unfunded commitments included in other liabilities in the consolidated balance sheets. As of December 31, 2023, the Company concluded that none of its loans required an asset specific reserve. The total change in provision for loan loss reserves for the three months ended March 31, 2024 was an increase of the provision of $5.8 million. The net increase represents an increase in the general reserve of loans held for investment of $5.9 million and a decrease related to unfunded loan commitments of $0.1 million. The increase in provision associated with the general reserve during the three months ended March 31, 2024 is primarily due to adverse changes in macroeconomic market conditions affecting commercial real estate partially offset by a decrease in the size of the balance sheet first mortgage loan portfolio as a result of repayments. 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 $0.3 million. The increase in provision associated with the general reserve during the three months ended March 31, 2023 was primarily due to adverse changes in macroeconomic market conditions affecting commercial real estate. Management’s method for monitoring credit is the performance of a loan. The primary credit quality indicator management utilizes to assess its current expected credit loss reserve is by viewing the Company’s mortgage loan portfolio by collateral type. The primary credit quality indicator is reviewed by management on a quarterly basis. The following tables summarize the amortized cost of the mortgage loan portfolio by collateral type as of March 31, 2024 and December 31, 2023, respectively ($ in thousands): Amortized Cost Basis by Origination Year as of March 31, 2024 Collateral Type 2024 2023 2022 2021 2020 and Earlier Total Multifamily $ 37,620 $ 14,505 $ 389,862 $ 525,115 $ — $ 967,102 Office — — 79,254 604,862 198,355 882,471 Mixed Use — — 176,976 287,198 — 464,174 Industrial — — 250 34,796 119,341 154,387 Manufactured Housing — — 12,948 79,085 4,712 96,745 Retail — — — 18,609 55,384 73,993 Hospitality — — 32,695 82,955 — 115,650 Other — — 31,430 11,993 — 43,423 Subtotal mortgage loans receivable 37,620 14,505 723,415 1,644,613 377,792 2,797,945 Individually Impaired loans — — — — — — Total mortgage loans receivable (1) $ 37,620 $ 14,505 $ 723,415 $ 1,644,613 $ 377,792 $ 2,797,945 Amortized Cost Basis by Origination Year as of December 31, 2023 Collateral Type 2023 2022 2021 2020 2019 and Earlier Total (2) Multifamily $ 14,461 $ 547,532 $ 612,489 $ — $ — $ 1,174,482 Office — 79,148 614,743 — 211,674 905,565 Mixed Use — 193,470 321,514 — 41,403 556,387 Industrial — 22,636 34,746 — 119,344 176,726 Manufactured Housing — 32,655 82,895 — — 115,550 Retail — 12,934 87,052 — 9,083 109,069 Hospitality — — 18,589 — 55,380 73,969 Other — 31,363 11,978 — — 43,341 Subtotal mortgage loans receivable 14,461 919,738 1,784,006 — 436,884 3,155,089 Individually Impaired loans — — — — — — Total mortgage loans receivable (3) $ 14,461 $ 919,738 $ 1,784,006 $ — $ 436,884 $ 3,155,089 (1) Not included above is $21.3 million of accrued interest receivable on all loans at March 31, 2024. (2) For the year ended December 31, 2023, there was a $2.7 million of write-off of an asset-specific allowance in connection with a foreclosure of one retail property in New York, NY. (3) Not included above is $22.4 million of accrued interest receivable |
SECURITIES
SECURITIES | 3 Months Ended |
Mar. 31, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
SECURITIES | 4. SECURITIES The Company invests in primarily AAA-rated real estate securities, typically front pay securities, with relatively short duration and significant credit subordination. Commercial mortgage-backed securities (“CMBS”), CMBS interest-only securities, U.S. Agency securities, corporate bonds and U.S. Treasury securities are classified as available-for-sale and reported at fair value with changes in fair value recorded in the current period in other comprehensive income. As of March 31, 2024, the Company does not intend to sell these investments and it is not more likely than not that the Company will be required to sell the investments before recovery of their amortized cost bases. Government National Mortgage Association (“GNMA”) interest-only, Federal Home Loan Mortgage Corp (“FHLMC”) and equity securities are recorded at fair value with changes in fair value recognized in earnings in the consolidated statements of income. The following is a summary of the Company’s securities at March 31, 2024 and December 31, 2023 ($ in thousands): March 31, 2024 Gross Unrealized Weighted Average Asset Type Outstanding Amortized Cost Basis Gains Losses (1) Carrying # of Rating (2) Coupon % Yield % Remaining CMBS $ 470,399 $ 469,640 $ 503 $ (10,534) $ 459,609 (3) 65 AAA 6.68 % 6.85 % 1.92 CMBS interest-only(4) 866,295 (4) 5,583 199 (29) 5,753 (5) 9 AAA 0.56 % 6.94 % 1.01 GNMA interest-only(6) 36,699 (4) 196 58 (52) 202 13 AAA 0.36 % 6.08 % 3.39 Agency securities 19 20 — (1) 19 1 AAA 4.00 % 2.69 % 0.93 U.S. Treasury securities 1,058 1,051 18 — 1,069 3 AAA N/A 5.25 % 0.22 Total debt securities $ 1,374,470 $ 476,490 $ 778 $ (10,616) $ 466,652 (7) 91 2.65 % 6.84 % 1.91 Equity securities N/A 160 — (29) 131 1 N/A N/A N/A N/A Allowance for current expected credit losses N/A — — (20) (20) Total securities $ 1,374,470 $ 476,650 $ 778 $ (10,665) $ 466,763 92 December 31, 2023 Gross Unrealized Weighted Average Asset Type Outstanding Amortized Gains Losses (1) Carrying # of Rating (2) Coupon % Yield % Remaining CMBS $ 439,679 $ 439,052 $ 277 $ (14,439) $ 424,890 (3) 64 AAA 6.67 % 6.83 % 2.00 CMBS interest-only(4) 876,555 (4) 6,453 169 (53) 6,569 (5) 9 AAA 0.57 % 6.61 % 1.07 GNMA interest-only(6) 37,053 (4) 214 51 (52) 213 14 AAA 0.36 % 6.12 % 3.60 Agency securities 22 22 — (1) 21 1 AAA 4.00 % 2.70 % 1.05 U.S. Treasury securities 54,031 53,648 68 — 53,716 7 AAA N/A 5.41 % 0.07 Total debt securities $ 1,407,340 $ 499,389 $ 565 $ (14,545) $ 485,409 (7) 95 2.55 % 6.82 % 1.98 Equity securities N/A 160 — (16) 144 1 N/A N/A N/A N/A Allowance for current expected credit losses N/A — — (20) (20) Total securities $ 1,407,340 $ 499,549 $ 565 $ (14,581) $ 485,533 96 (1) 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. (2) Represents the weighted average of the ratings of all securities in each asset type, expressed as an S&P equivalent rating. For each security rated by multiple rating agencies, the highest rating is used. 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. (3) As of March 31, 2024 and December 31, 2023, includes $8.9 million and $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. (4) The amounts presented represent the principal amount of the mortgage loans outstanding in the pool in which the interest-only securities participate. (5) As of March 31, 2024 and December 31, 2023, includes $0.3 million of restricted securities which are designated as risk retention securities under the Dodd-Frank Act and are therefore subject to transfer restrictions over the term of the securitization trust and are classified as held-to-maturity and reported at amortized cost. (6) GNMA interest-only securities are recorded at fair value with changes in fair value recorded in current period earnings. The Company’s GNMA interest-only securities are considered to be hybrid financial instruments that contain embedded derivatives. As a result, the Company has elected to account for them as hybrid instruments in their entirety at fair value with changes in fair value recognized in unrealized gain (loss) on securities in the consolidated statements of income. (7) The Company’s investments in debt securities represent an ownership interest in unconsolidated VIEs. The Company’s maximum exposure to loss from these unconsolidated VIEs is the amortized cost basis of the securities which represents the purchase price of the investment adjusted by any unamortized premiums or discounts as of the reporting date. The following summarizes the carrying value of the Company’s debt securities by remaining maturity based upon expected cash flows at March 31, 2024 and December 31, 2023 ($ in thousands): March 31, 2024 Asset Type Within 1 year 1-5 years 5-10 years Total CMBS $ 73,296 $ 371,882 $ 14,431 $ 459,609 CMBS interest-only 2,218 3,535 — 5,753 GNMA interest-only 82 21 99 202 Agency securities 19 — — 19 U.S. Treasury securities 1,069 — — 1,069 Total securities (1) $ 76,684 $ 375,438 $ 14,530 $ 466,652 (1) Excluded from the table above are $0.1 million of equity securities and $(20.0) thousand of allowance for current expected credit losses. December 31, 2023 Asset Type Within 1 year 1-5 years 5-10 years Total CMBS $ 81,343 $ 343,547 $ — $ 424,890 CMBS interest-only 2,121 4,448 — 6,569 GNMA interest-only 86 22 105 213 Agency securities — 21 — 21 U.S. Treasury securities 53,716 — 53,716 Total securities (1) $ 137,266 $ 348,038 $ 105 $ 485,409 (1) Excluded from the table above are $0.1 million of equity securities and $(20.0) thousand of allowance for current expected credit losses. During the three months ended March 31, 2024 and March 31, 2023, the Company sold $1.0 million and $0.5 million of equity securities, respectively. The following summarizes the Company’s realized and unrealized gain (loss) on securities, included within “Fee and Other Income” on the Company’s consolidated statements of income for the three months ended March 31, 2024 and March 31, 2023 ($ in thousands): Three Months Ended March 31, 2024 2023 Realized gain/(loss) 53 (307) Unrealized gain/(loss) $ (7) $ 117 Total realized and unrealized gain/(loss) on securities $ 46 $ (190) |
REAL ESTATE AND RELATED LEASE I
REAL ESTATE AND RELATED LEASE INTANGIBLES, NET | 3 Months Ended |
Mar. 31, 2024 | |
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, 2024 December 31, 2023 Land $ 189,242 $ 183,194 Building 656,460 647,201 In-place leases and other intangibles 117,006 116,831 Undepreciated real estate and related lease intangibles 962,708 947,226 Less: Accumulated depreciation and amortization (229,073) (220,784) Real estate and related lease intangibles, net(1) $ 733,635 $ 726,442 Below market lease intangibles, net (other liabilities)(2) $ (28,330) $ (28,860) (1) There was unencumbered real estate of $172.4 million and $160.8 million as of March 31, 2024 and December 31, 2023, respectively. (2) Below market lease intangibles is net of $16.3 million and $15.8 million of accumulated amortization as of March 31, 2024 and December 31, 2023, respectively. The following table presents depreciation and amortization expense on real estate recorded by the Company ($ in thousands): Three Months Ended March 31, 2024 2023 Depreciation expense(1) $ 6,389 $ 6,200 Amortization expense 1,913 1,329 Total real estate depreciation and amortization expense $ 8,302 $ 7,529 (1) Depreciation expense on the consolidated statements of income also includes $0.1 million of depreciation on corporate fixed assets for the three months ended March 31, 2024 and March 31, 2023. The Company’s intangible assets are comprised of in-place leases, above market leases and other intangibles. The following tables present additional detail related to the intangible assets ($ in thousands): March 31, 2024 December 31, 2023 Gross intangible assets(1) $ 117,006 $ 116,831 Accumulated amortization 57,792 55,782 Net intangible assets $ 59,214 $ 61,049 (1) Includes $2.7 million and $2.8 million of unamortized above market lease intangibles, which are included in real estate and related lease intangibles, net on the consolidated balance sheets as of March 31, 2024 and December 31, 2023. The following table presents increases/reductions in operating lease income related to the amortization of above or below market leases recorded by the Company ($ in thousands): Three Months Ended March 31, 2024 2023 Reduction in operating lease income for amortization of above market lease intangibles acquired $ (97) $ (72) Increase in operating lease income for amortization of below market lease intangibles acquired 529 526 Total $ 432 $ 454 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, 2024 ($ in thousands): Period Ending December 31, Increase/(Decrease) to Operating Lease Income Amortization Expense 2024 (last nine months) $ 1,289 $ 4,987 2025 1,721 5,178 2026 1,735 4,519 2027 1,699 4,332 2028 1,625 4,167 Thereafter 17,532 33,304 Total $ 25,601 $ 56,487 Rent Receivables There were $2.0 million and $1.1 million of rent receivables included in other assets on the consolidated balance sheets as of March 31, 2024 and December 31, 2023, respectively. Operating Lease Income & Tenant Reimbursements The following is a schedule of non-cancellable, contractual, future minimum rent under leases (excluding property operating expenses paid directly by tenant under net leases) at March 31, 2024 ($ in thousands): Period Ending December 31, Amount 2024 (last nine months) $ 49,731 2025 60,708 2026 53,016 2027 47,820 2028 45,271 Thereafter 160,837 Total $ 417,383 Tenant reimbursements, which consist of real estate taxes and other municipal charges paid by the Company, which were reimbursable by the Company’s tenants pursuant to the terms of the lease agreements, were $2.0 million and $1.1 million for the three months ended March 31, 2024 and 2023, respectively. Tenant reimbursements are included in operating lease income on the Company’s consolidated statements of income. Acquisitions The Company acquired the following properties during the three months ended March 31, 2024 ($ in thousands): Acquisition Date Type Primary Location(s) Purchase Price/Fair Value on the Date of Foreclosure Ownership Interest (1) February 2024 (2) Multifamily Los Angeles, CA $ 14,110 100% Total real estate acquisitions $ 14,110 (1) Properties were consolidated as of acquisition date. (2) In February 2024, the Company acquired a multifamily portfolio consisting of three properties in Los Angeles, CA via foreclosure. The portfolio served as collateral for a mortgage loan receivable held for investment. The Company obtained a third-party appraisal of the property. The $14.1 million fair value was determined by using the sales comparison and income approaches. The appraiser utilized a terminal capitalization rate of 5.5%. There was no gain or loss resulting from the foreclosure of the loan. The key inputs used to determine fair value were determined to be Level 3 inputs. The Company allocates purchase consideration based on relative fair values, and real estate acquisition costs are capitalized as a component of the cost of the assets acquired for asset acquisitions. During the three months ended March 31, 2024, all acquisitions were determined to be asset acquisitions. Sales |
DEBT OBLIGATIONS, NET
DEBT OBLIGATIONS, NET | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
DEBT OBLIGATIONS, NET | 6. DEBT OBLIGATIONS, NET The details of the Company’s debt obligations at March 31, 2024 and December 31, 2023 are as follows ($ in thousands): March 31, 2024 Debt Obligations Committed / Carrying Value of Debt Obligations Committed but Unfunded Interest Rate at March 31, 2024(1) Current Term Maturity Remaining Extension Options Eligible Collateral Carrying Amount of Collateral Fair Value of Collateral Committed Loan Repurchase Facility $ 500,000 $ 232,114 $ 267,886 7.07% — 7.47% 9/27/2025 (2) (3) $ 339,160 $ 339,160 Committed Loan Repurchase Facility 300,000 80,743 219,257 7.42% — 8.32% 12/19/2024 (4) (5) 111,560 111,560 Committed Loan Repurchase Facility 141,997 102,956 39,041 7.02% — 7.57% 4/30/2024 (6) (3) 65,210 65,210 (7) Committed Loan Repurchase Facility 200,000 71,403 128,597 7.72% — 8.27% 10/3/2025 (8) (3) 97,193 97,374 Committed Loan Repurchase Facility 100,000 — 100,000 —% —% 1/22/2025 (9) (5) — — Total Committed Loan Repurchase Facilities 1,241,997 487,216 754,781 613,123 613,304 Committed Securities Repurchase Facility 100,000 — 100,000 —% — —% 5/27/2024 N/A (10) — — Uncommitted Securities Repurchase Facility N/A (11) 1,665 N/A (11) 6.52% — 7.47% 4/16/2024 N/A (10) 2,509 2,509 (12) Total Repurchase Facilities 1,341,997 488,881 854,781 615,632 615,813 Revolving Credit Facility 323,850 — 323,850 —% — —% 1/25/2025 (13) N/A (14) N/A (14) N/A (14) Mortgage Loan Financing 477,719 478,797 — 4.39% — 9.03% 2024-2034 (15) N/A (16) 505,023 683,438 (17) CLO Debt 1,047,893 1,046,700 (18) — 6.64% — 9.09% 2024-2026 (19) N/A (3) 1,294,873 1,294,873 Borrowings from the FHLB 90,000 90,000 — 5.70% — 5.82% 2024 N/A (20) 109,870 109,870 Senior Unsecured Notes 1,573,614 1,562,651 (21) — 4.25% — 5.25% 2025-2029 N/A N/A (22) N/A (22) N/A (22) Total Debt Obligations, Net $ 4,855,073 $ 3,667,029 $ 1,178,631 $ 2,525,398 $ 2,703,994 (1) Interest rates on floating rate debt reflect the applicable index in effect as of March 31, 2024. (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 364-day period 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) The Company has pledged mortgage loans receivable with a value of $69.4 million that eliminates in consolidation and is thus not included in the carrying amount of collateral or fair value of collateral. (8) Two additional 12-month extension periods at Company’s option. No new advances permitted past 30 days prior to initial maturity. (9) One additional 12-month extension period at Company's option. No new advances permitted during the final 12-month period. (10) Commercial real estate securities. It does not include the first mortgage commercial real estate loans collateralizing such securities. (11) Represents uncommitted securities repurchase facilities for which there is no committed amount subject to future advances. (12) 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. (13) Four additional 12-month periods at Company’s option. (14) 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. (15) Anticipated repayment dates. (16) Certain of the Company’s real estate investments serve as collateral for the Company’s mortgage loan financing. (17) Represents undepreciated carrying value of commercial real estate collateral. (18) Presented net of unamortized debt issuance costs of $1.2 million at March 31, 2024. (19) Represents the estimated maturity date based on the underlying loan maturities. (20) Investment grade commercial real estate securities. It does not include the first mortgage commercial real estate loans collateralizing such securities. (21) Presented net of unamortized debt issuance costs of $11.0 million at March 31, 2024. (22) The obligations under the senior unsecured notes are guaranteed by the Company and certain of its subsidiaries. December 31, 2023 Debt Obligations Committed / Carrying Value of Debt Obligations Committed but Unfunded Interest Rate at December 31, 2022(1) Current Term Maturity Remaining Extension Options Eligible Collateral Carrying Amount of Collateral Fair Value of Collateral Committed Loan Repurchase Facility $ 500,000 $ 235,594 $ 264,406 7.08% — 7.48% 9/27/2025 (2) (3) $ 342,467 $ 342,467 Committed Loan Repurchase Facility 300,000 118,903 181,097 7.46% — 8.36% 12/19/2024 (4) (5) 174,938 174,938 Committed Loan Repurchase Facility 141,997 139,162 2,835 7.06% — 7.60% 4/30/2024 (6) (3) 65,110 65,110 (7) Committed Loan Repurchase Facility 200,000 111,340 88,660 7.22% — 8.29% 10/3/2025 (8) (3) 150,280 150,559 Committed Loan Repurchase Facility 100,000 — 100,000 —% — —% 1/22/2024 (9) (5) — — Total Committed Loan Repurchase Facilities 1,241,997 604,999 636,998 732,795 733,074 Committed Securities Repurchase Facility 100,000 — 100,000 —% — —% 5/27/2024 N/A (10) — — Uncommitted Securities Repurchase Facility N/A (11) 1,608 N/A (11) 6.61% — 7.56% 1/17/2024 N/A (10) 2,511 2,511 (12) Total Repurchase Facilities 1,341,997 606,607 736,998 735,306 735,585 Revolving Credit Facility 323,850 — 323,850 —% — —% 7/27/2024 (13) N/A (14) N/A (14) N/A (14) Mortgage Loan Financing 437,384 437,759 — 4.39% — 9.03% 2024-2031 (15) N/A (16) 474,740 625,454 (17) CLO Debt 1,062,777 1,060,719 (18) — 6.68% — 9.13% 2024-2026 (19) N/A (3) 1,327,722 1,327,722 Borrowings from the FHLB 115,000 115,000 — 5.76% — 5.88% 2024 N/A (20) 140,276 140,276 Senior Unsecured Notes 1,575,614 1,563,861 (21) — 4.25% — 5.25% 2025-2029 N/A N/A (22) N/A (22) N/A (22) Total Debt Obligations, Net $ 4,856,622 $ 3,783,946 $ 1,060,848 $ 2,678,044 $ 2,829,037 (1) Interest rates on floating rate debt reflect the applicable index in effect as of December 31, 2023. (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 364-day period 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) The Company has pledged mortgage loans receivable with a value of $114.7 million that eliminates in consolidation and is thus not included in the carrying amount of collateral or fair value of collateral. (8) Two additional 12-month extension periods at Company’s option. No new advances permitted past 30 days prior to initial maturity. (9) Two additional 12-month extension periods at Company's option. No new advances permitted during the final 12-month period. (10) Commercial real estate securities. It does not include the first mortgage commercial real estate loans collateralizing such securities. (11) Represents uncommitted securities repurchase facilities for which there is no committed amount subject to future advances. (12) 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. (13) Three additional 12-month periods at Company’s option. (14) 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. (15) Anticipated repayment dates. (16) Certain of the Company’s real estate investments serve as collateral for the Company’s mortgage loan financing. (17) Represents undepreciated carrying value of commercial real estate collateral. (18) Presented net of unamortized debt issuance costs of $2.1 million at December 31, 2023. (19) Represents the estimated maturity date based on the remaining reinvestment period and underlying loan maturities. (20) Investment grade commercial real estate securities. It does not include the first mortgage commercial real estate loans collateralizing such securities. (21) Presented net of unamortized debt issuance costs of $11.8 million at December 31, 2023. (22) 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 five committed master repurchase agreements, as outlined in the March 31, 2024 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, 2024 and December 31, 2023. 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, 2024, the Company had total debt obligations of $488.9 million outstanding pursuant to repurchase agreements with four counterparties. Four of the loan repurchase facilities are due more than 90 days after March 31, 2024. One loan purchase facility was due within 30 days of March 31, 2024 and was amended subsequent to quarter end to extend the maturity date by two years. The securities repurchase facility is due between 30 days and 90 days after March 31, 2024 and had no outstanding balance. As of March 31, 2024, no counterparties held collateral that exceeded the amounts borrowed under the related repurchase agreements by more than $152.4 million, or 10% of the Company’s total equity. As of March 31, 2024, the weighted average haircut, or the percent of collateral value in excess of the loan amount, under the Company’s repurchase agreements was 21%. There have been no significant fluctuations in haircuts across asset classes on the 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. Borrowings under the Revolving Credit Facility incur interest at a fixed margin of 2.50% over the index rate, with reductions in the fixed margin upon the achievement of investment grade credit ratings. As of March 31, 2024, 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 the Company’s 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 its subsidiaries to pay certain amounts of money and certain events of bankruptcy or insolvency. Debt Issuance Costs As of March 31, 2024 and December 31, 2023, the amounts of unamortized costs relating to the Company’s master repurchase facilities and Revolving Credit Facility were $4.0 million 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. The uncommitted securities repurchase facility is due within 30 days of March 31, 2024. Mortgage Loan Financing The Company typically finances its real estate investments with long-term, non-recourse mortgage financing. These mortgage loans have carrying amounts of $478.8 million and $437.8 million, net of unamortized premiums of $2.5 million and $1.8 million as of March 31, 2024 and December 31, 2023, 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 $0.2 million of premium amortization, which decreased interest expense for the three months ended March 31, 2024 and 2023, respectively. These non-recourse debt agreements provide for secured financing at rates ranging from 4.39% to 9.03%, and, as of March 31, 2024, have anticipated maturity dates between 2024 and 2034, with an average term of 3.6 years. The mortgage loans are collateralized by real estate and related lease intangibles, net, of $505.0 million and $474.7 million as of March 31, 2024 and December 31, 2023, respectively. During the three months ended March 31, 2024, the Company executed five new term debt agreements to finance properties in its real estate portfolio with an aggregate outstanding debt balance of $40.1 million. During the three months ended March 31, 2023 the Company did not execute any new term debt agreements. Collateralized Loan Obligations (“CLO”) Debt As of March 31, 2024, the Company had $1.0 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 $1.2 million. 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 for further detail. 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 for further detail. 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, 2024, Tuebor had $90.0 million of borrowings outstanding, with terms of 0.09 years to 0.50 years (with a weighted average of 0.39 years), and interest rates of 5.70% to 5.82% (with a weighted average of 5.74%). As of March 31, 2024, collateral for the borrowings was comprised of $109.9 million of CMBS and U.S. Agency securities (with advance rates of 71.7% to 95.7%). 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 the Company would obtain such approval if sought. Largely as a result of this restriction, approximately $843.9 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, 2024. 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, 2024, 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”), $611.9 million in aggregate principal amount of 4.25% senior notes due 2027 (the “2027 Notes”) and $633.9 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, 2024, the Company repurchased $2.0 million of the 2029 Notes and recognized a net gain of $0.2 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, 2024 and 2023. 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 directors has authorized the Company to repurchase any or all of the Notes from time to time without further approval. 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 $871.4 million of the total equity is restricted from payment as a dividend by the Company at March 31, 2024. The Company was in compliance with all covenants as of March 31, 2024. Combined Maturity of Debt Obligations The following schedule reflects the Company’s contractual payments under borrowings by maturity ($ in thousands): Period ending December 31, Borrowings by 2024 (last nine months) $ 292,412 2025 581,685 2026 138,170 2027 873,755 2028 24,317 Thereafter 719,874 Subtotal 2,630,213 Debt issuance costs included in senior unsecured notes (10,963) Debt issuance costs included in mortgage loan financings (1,444) Premiums included in mortgage loan financings (2) 2,522 Total (3) $ 2,620,328 (1) The allocation of repayments under the Company’s 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 conduit mortgage mortgage loans sold into securitizations, collateralized by net leased properties in the Company’s real estate segment. These premiums are amortized as a reduction to interest expense. (3) |
DERIVATIVE INSTRUMENTS
DERIVATIVE INSTRUMENTS | 3 Months Ended |
Mar. 31, 2024 | |
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, 2024 and December 31, 2023 ($ in thousands): March 31, 2024 Fair Value Remaining Contract Type Notional Asset(1) Liability(1) Caps 1 Month Term SOFR $ 90,000 $ 660 $ — 0.38 Futures 5-year Treasury-Note Futures 500 — — 0.25 10-year Treasury-Note Futures 26,200 14 — 0.25 Total futures 26,700 14 — Total derivatives $ 116,700 $ 674 $ — (1) Shown as derivative instruments in the accompanying consolidated balance sheets. December 31, 2023 Fair Value Remaining Contract Type Notional Asset(1) Liability(1) Caps 1 Month Term SOFR $ 90,000 $ 908 $ — 0.62 Futures 5-year Treasury-Note Futures 18,800 98 — 0.25 10-year Treasury-Note Futures 86,100 447 — 0.25 Total futures 104,900 545 — Options Options N/A (2) 1 — 0.05 Total derivatives $ 194,900 $ 1,454 $ — (1) Shown as derivative instruments in the accompanying consolidated balance sheets. (2) The Company held 104 options contracts as of December 31, 2023. The following table summarizes the net realized gains (losses) and unrealized gains (losses) 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, 2024 and 2023 ($ in thousands): Three Months Ended March 31, 2024 Contract Type Unrealized Realized Net Result Caps $ (248) $ 418 $ 170 Futures (532) 4,382 3,850 Options — (1) (1) Total $ (780) $ 4,799 $ 4,019 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) Futures Collateral posted with the Company’s 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 its interest rate futures that are centrally cleared by CME. CME determines the fair value of the Company’s 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 $0.7 million and $2.8 million of cash margin as collateral for derivatives as of March 31, 2024 and December 31, 2023, respectively, which is included in restricted cash in the consolidated balance sheets. |
OFFSETTING ASSETS AND LIABILITI
OFFSETTING ASSETS AND LIABILITIES | 3 Months Ended |
Mar. 31, 2024 | |
Offsetting [Abstract] | |
OFFSETTING ASSETS AND LIABILITIES | 8. OFFSETTING ASSETS AND LIABILITIES The following tables present both gross information and net information about derivatives and other instruments eligible for offset in the statement of financial position as of March 31, 2024 and December 31, 2023. The Company’s accounting policy is to record derivative asset and liability positions on a gross basis; therefore, the following tables present the gross derivative asset and liability positions recorded on the balance sheets, while also disclosing the eligible amounts of financial instruments and cash collateral to the extent those amounts could offset the gross amount of derivative asset and liability positions. The actual amounts of collateral posted by or received from counterparties may be in excess of the amounts disclosed in the following tables as the following only disclose amounts eligible to be offset to the extent of the recorded gross derivative positions. The following table represents offsetting of financial assets and derivative assets as of March 31, 2024 ($ in thousands): Description Gross amounts of Gross amounts Net amounts of Gross amounts not offset in the Net amount Financial Cash collateral Derivatives $ 674 $ — $ 674 $ — $ (741) $ (67) Total $ 674 $ — $ 674 $ — $ (741) $ (67) (1) Included in restricted cash on consolidated balance sheets. The following table represents offsetting of financial liabilities and derivative liabilities as of March 31, 2024 ($ in thousands): Description Gross amounts of Gross amounts Net amounts of Gross amounts not offset in the Net amount Financial Cash collateral Repurchase agreements $ 488,880 $ — $ 488,880 $ 488,880 $ — $ 488,880 Total $ 488,880 $ — $ 488,880 $ 488,880 $ — $ 488,880 (1) Included in restricted cash on consolidated balance sheets. The following table represents offsetting of financial assets and derivative assets as of December 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 $ 1,454 $ — $ 1,454 $ — $ (2,846) $ (1,392) Total $ 1,454 $ — $ 1,454 $ — $ (2,846) $ (1,392) (1) Included in restricted cash on consolidated balance sheets. The following table represents offsetting of financial liabilities and derivative liabilities as of December 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 $ 606,607 $ — $ 606,607 $ 606,607 $ — $ 606,607 Total $ 606,607 $ — $ 606,607 $ 606,607 $ — $ 606,607 (1) Included in restricted cash on consolidated balance sheets. |
CONSOLIDATED VARIABLE INTEREST
CONSOLIDATED VARIABLE INTEREST ENTITIES | 3 Months Ended |
Mar. 31, 2024 | |
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, 2024 and December 31, 2023 ($ in thousands): March 31, 2024 December 31, 2023 Mortgage loan receivables held for investment, net, at amortized cost 1,294,873 1,327,722 Accrued interest receivable 9,980 9,394 Other assets 23,864 4,469 Total assets $ 1,328,717 $ 1,341,585 Debt obligations, net $ 1,046,700 $ 1,060,719 Accrued expenses 3,489 3,555 Total liabilities 1,050,189 1,064,274 Net equity in VIEs (eliminated in consolidation) 278,528 277,311 Total equity 278,528 277,311 Total liabilities and equity $ 1,328,717 $ 1,341,585 Refer to Note 6, Debt Obligations, Net - Collateralized Loan Obligations (“CLO”) Debt for further details. |
EQUITY STRUCTURE AND ACCOUNTS
EQUITY STRUCTURE AND ACCOUNTS | 3 Months Ended |
Mar. 31, 2024 | |
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. 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, the Company’s liquidity requirements, contractual restrictions and other factors. As of March 31, 2024, the Company has a remaining amount available for repurchase of $43.6 million, which represents 3.1% in the aggregate of its outstanding Class A common stock, based on the closing price of $11.13 per share on such date. Subsequent to quarter end, on April 24, 2024, the board of directors authorized the repurchase of $75.0 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 July 27, 2022 authorization from $43.6 million to $75.0 million. The following tables summarize the Company’s repurchase activity of its Class A common stock during the three months ended March 31, 2024 and 2023 ($ in thousands): Shares Amount(1) Authorizations remaining as of December 31, 2023 $ 44,256 Repurchases paid: March 1, 2024 - March 31, 2024 60,000 (647) Authorizations remaining as of March 31, 2024 $ 43,609 (1) Amount excludes commissions paid associated with share repurchases. Shares Amount(1) Authorizations remaining as of December 31, 2022 $ 46,737 Repurchases paid: March 1, 2023 - March 31, 2023 250,000 (2,285) Authorizations remaining as of March 31, 2023 $ 44,452 (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, 2024 and 2023: Declaration Date Dividend per Share March 15, 2024 $ 0.23 Total $ 0.23 March 15, 2023 $ 0.23 Total $ 0.23 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, 2024 and 2023 ($ in thousands): Three Months Ended March 31, 2024 2023 Accumulated Other Comprehensive Income (Loss) beginning of period $ (13,853) $ (21,009) Gain (loss) on available for sale securities, net of tax 4,033 3,485 Accumulated Other Comprehensive Income (Loss) end of period $ (9,820) $ (17,524) |
NONCONTROLLING INTERESTS
NONCONTROLLING INTERESTS | 3 Months Ended |
Mar. 31, 2024 | |
Noncontrolling Interest [Abstract] | |
NONCONTROLLING INTERESTS | 11. NONCONTROLLING INTERESTS Noncontrolling Interests in Consolidated Ventures As of March 31, 2024, 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 $78.4 million, and a single-tenant office building in Oakland County, MI with a book value of $8.8 million. The Company makes distributions and allocates income from these ventures to the noncontrolling interests in accordance with the terms of the respective governing agreements. Sales |
EARNINGS PER SHARE
EARNINGS PER SHARE | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | 12. EARNINGS PER SHARE The Company’s net income (loss) and weighted average shares outstanding for the three months ended March 31, 2024 and 2023 consist of the following: Three Months Ended March 31, ($ in thousands except share amounts) 2024 2023 Basic and Diluted Net income (loss) available for Class A common shareholders $ 16,609 $ 22,408 Weighted average shares outstanding: Basic 125,315,765 124,493,132 Diluted 125,520,373 124,656,102 The calculation of basic and diluted net income (loss) per share amounts for the three months ended March 31, 2024 and 2023 consist of the following: Three Months Ended March 31, (In thousands except share and per share amounts) (1) 2024 2023 Basic Net Income (Loss) Per Share of Class A Common Stock Numerator : Net income (loss) attributable to Class A common shareholders $ 16,609 $ 22,408 Denominator : Weighted average number of shares of Class A common stock outstanding 125,315,765 124,493,132 Basic net income (loss) per share of Class A common stock $ 0.13 $ 0.18 Diluted Net Income (Loss) Per Share of Class A Common Stock Numerator: Net income (loss) attributable to Class A common shareholders $ 16,609 $ 22,408 Diluted net income (loss) attributable to Class A common shareholders 16,609 22,408 Denominator: Basic weighted average number of shares of Class A common stock outstanding 125,315,765 124,493,132 Add - dilutive effect of: Incremental shares of unvested Class A restricted stock(1) 204,608 162,970 Diluted weighted average number of shares of Class A common stock outstanding (2) 125,520,373 124,656,102 Diluted net income (loss) per share of Class A common stock $ 0.13 $ 0.18 (1) The Company applies the treasury stock method. (2) There were 378,668 and 390,313 anti-dilutive shares for the three months ended March 31, 2024 and 2023, respectively. |
STOCK-BASED AND OTHER COMPENSAT
STOCK-BASED AND OTHER COMPENSATION PLANS | 3 Months Ended |
Mar. 31, 2024 | |
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, 2024 2023 Stock-based compensation expense $ 10,298 $ 9,124 Total Stock-Based Compensation Expense $ 10,298 $ 9,124 A summary of the grants is presented below: Three Months Ended March 31, 2024 2023 Number Weighted Number Weighted Grants - Class A Common Stock 1,855,541 $ 10.70 1,417,561 $ 11.58 The table below presents the number of unvested shares of Class A common stock and outstanding stock options at March 31, 2024 and changes during 2024 of the Class A common stock and stock options of Ladder Capital Corp: Restricted Stock Weighted Average Grant Date Fair Value Stock Options Nonvested/Outstanding at December 31, 2023 2,197,963 $ 12.37 623,788 Granted 1,855,541 10.70 — Vested (1,893,138) 10.91 — Forfeited (7,382) 10.87 — Nonvested/Outstanding at March 31, 2024 2,152,984 $ 12.22 623,788 Exercisable at March 31, 2024 (1) 623,788 (1) The weighted average exercise price of outstanding options is $14.84 at March 31, 2024. At March 31, 2024, there was $19.0 million of total unrecognized compensation cost related to certain share-based compensation awards that is expected to be recognized over a period of up to 35.1 months, with a weighted average remaining vesting period of 27.5 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 provided 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. 2023 Omnibus Incentive Plan At the Company’s Annual Meeting held on June 6, 2023, the stockholders of the Company approved the Ladder Capital Corp 2023 Omnibus Incentive Plan (the “2023 Omnibus Incentive Plan”), effective as of the date of the Annual Meeting (the “Effective Date”). The 2023 Omnibus Incentive Plan superseded and replaced the 2014 Omnibus Incentive Plan in its entirety as of the Effective Date. The aggregate number of shares of the Company’s Class A common stock that will be available for issuance to employees, non-employee directors and consultants of the Company and its affiliates under the 2023 Omnibus Incentive Plan will not exceed 3,000,000 shares of Class A common stock, plus an additional amount, not to exceed 10,253,867 shares of Class A common stock, remaining available for new awards under the 2014 Omnibus Incentive Plan as of the Effective Date, subject to the terms and conditions set forth in the 2023 Omnibus Incentive Plan. Annual Incentive Awards Granted in 2024 with respect to 2023 Performance For 2023 performance, certain employees received stock-based incentive equity in February 2024. Restricted stock subject to time-based vesting criteria will vest in three installments on February 18 of each of 2025, 2026 and 2027, 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, 2024, 2025 and 2026, 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, 2024, in connection with 2023 performance, annual stock awards were granted to management employees (each, a “Management Grantee”), with an aggregate grant date fair value of $10 million, which represents 937,560 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 127,275 shares with an aggregate fair value of $1.4 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, 2024, in connection with 2023 performance, annual stock awards were granted to certain non-management employees (“Non-Management Grantees”) with an aggregate grant date fair value of $9.4 million, which represents 882,436 shares of Class A common stock. Of these awards, 22,939 shares were unrestricted, 418,285 shares are subject to time-based vesting criteria and the remaining 441,212 shares are subject to the attainment of the Performance Target, including the Catch-Up Provision, for the applicable years. Other 2024 Restricted Stock Awards On February 18, 2024, certain members of the board of directors received annual restricted stock awards with a grant date fair value of $0.4 million, representing 35,545 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 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. 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, Ms. Porcella (for her February 18, 2024 award), 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 a Non-Management Grantee (except for the one grantee mentioned above and including Ms. Porcella, in regards to her awards granted prior to February 18, 2024), 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, 2024 | |
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, 2024 and December 31, 2023 are as follows ($ in thousands): March 31, 2024 Weighted Average Principal Amount Amortized Cost Basis/Purchase Price Fair Value Fair Value Method Yield Remaining Assets: CMBS(1) $ 470,399 $ 469,640 $ 459,609 Internal model 6.85 % 1.92 CMBS interest-only(1) 866,295 (2) 5,583 5,753 Internal model 6.94 % 1.01 GNMA interest-only(3) 36,699 (2) 196 202 Internal model 6.08 % 3.39 Agency securities(1) 19 20 19 Internal model 2.69 % 0.93 U.S. Treasury securities(1) 1,058 1,051 1,069 Internal model 5.25 % 0.22 Equity securities(3) N/A 160 131 Observable market prices N/A N/A Mortgage loan receivables held for investment, net, at amortized cost(4) 2,803,919 2,797,945 2,792,767 Discounted Cash Flow(5) 9.42 % 0.71 Mortgage loan receivables held for sale 31,350 26,955 26,955 Internal model, third-party inputs(6) 4.57 % 7.94 FHLB stock(7) 4,050 4,050 4,050 (7) 9.00 % N/A Nonhedge derivatives(1)(10) 116,700 674 674 Counterparty quotations N/A 0.48 Liabilities: Repurchase agreements - short-term 185,364 185,364 185,364 Cost plus Accrued Interest (8) 7.59 % 0.36 Repurchase agreements - long-term 303,517 303,517 303,517 Discounted Cash Flow(9) 7.38 % 1.50 Mortgage loan financing 477,719 478,797 464,499 Discounted Cash Flow 5.96 % 3.03 CLO debt 1,047,893 1,046,700 1,046,700 Discounted Cash Flow(9) 7.05 % 1.64 Borrowings from the FHLB 90,000 90,000 90,000 Discounted Cash Flow 5.74 % 0.39 Senior unsecured notes 1,573,614 1,562,651 1,472,537 Internal model, third-party inputs 4.66 % 3.52 (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 $49.1 million at March 31, 2024. (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 spreads. 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, 2023 Weighted Average Principal Amount Amortized Cost Basis/Purchase Price Fair Value Fair Value Method Yield Remaining Assets: CMBS(1) $ 439,679 $ 439,052 $ 424,890 Internal model 6.83 % 2.00 CMBS interest-only(1) 876,555 (2) 6,453 6,569 Internal model 6.61 % 1.07 GNMA interest-only(3) 37,053 (2) 214 213 Internal model 6.12 % 3.60 Agency securities(1) 22 22 21 Internal model 2.70 % 1.05 U.S. Treasury securities(1) 54,031 53,648 53,716 Internal model 5.41 % 0.07 Equity securities(3) N/A 160 144 Observable market prices N/A N/A Mortgage loan receivables held for investment, net, at amortized cost(4) 3,164,226 3,155,089 3,150,843 Discounted Cash Flow(5) 9.65 % 0.68 Mortgage loan receivables held for sale 31,350 26,868 26,868 Internal model, third-party inputs(6) 4.57 % 8.19 FHLB stock(7) 5,175 5,175 5,175 (7) 8.25 % N/A Nonhedge derivatives(1)(10) 194,900 1,454 1,454 Counterparty quotations N/A 0.48 Liabilities: Repurchase agreements - short-term 337,631 337,631 337,631 Cost plus Accrued Interest (8) 7.57 % 0.48 Repurchase agreements - long-term 268,976 268,976 268,976 Discounted Cash Flow(9) 7.35 % 1.74 Mortgage loan financing 437,384 437,759 425,992 Discounted Cash Flow 5.87 % 2.64 CLO debt 1,062,777 1,060,719 1,060,719 Discounted Cash Flow(9) 7.08 % 1.89 Borrowings from the FHLB 115,000 115,000 115,000 Discounted Cash Flow 5.82 % 0.57 Senior unsecured notes 1,575,614 1,563,861 1,475,303 Internal model, third-party inputs 4.66 % 3.77 (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 $43.2 million at December 31, 2023. (5) Fair value for floating rate mortgage loan receivables, held for investment is estimated to approximate the outstanding face amount given the short interest rate reset risk (30 days) and no significant change in credit spreads. Fair value for fixed rate mortgage loan receivables, held for investment is measured using a discounted cash flow model. (6) Fair value for mortgage loan receivables, held for sale is measured using a hypothetical securitization model utilizing market data from recent securitization spreads and pricing. (7) Fair value of the FHLB stock approximates outstanding face amount as the Company’s captive insurance subsidiary is restricted from trading the stock and can only put the stock back to the FHLB, at the FHLB’s discretion, at par. (8) For repurchase agreements - short term, the value approximates the cost plus accrued interest. (9) For repurchase agreements - long term and CLO debt, the carrying value approximates the fair value discounting the expected cash flows at current market rates. If the collateral is determined to be impaired, the related financing would be revalued accordingly. There are no impairments on any positions. (10) The outstanding face amount of the nonhedge derivatives represents the notional amount of the underlying contracts. The following table summarizes the Company’s financial assets and liabilities, which are both reported at fair value on a recurring basis (as indicated) or amortized cost/par, at March 31, 2024 and December 31, 2023 ($ in thousands): March 31, 2024 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) $ 461,152 $ — $ 450,672 $ — $ 450,672 CMBS interest-only(1) 858,003 (2) — 5,469 — 5,469 GNMA interest-only(3) 36,699 (2) — 202 — 202 Agency securities(1) 19 — 19 — 19 U.S. Treasury securities 1,058 1,069 — — 1,069 Equity securities N/A 131 — — 131 Nonhedge derivatives(4) 116,700 — 674 — 674 $ 1,200 $ 457,036 $ — $ 458,236 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) $ 2,803,919 $ — $ — $ 2,792,767 $ 2,792,767 Mortgage loan receivable held for sale(6) 31,350 — — 26,955 26,955 CMBS(7) 9,247 — 8,937 — 8,937 CMBS interest-only(7) 8,292 — 284 — 284 FHLB stock 4,050 — — 4,050 4,050 $ — $ 9,221 $ 2,823,772 $ 2,832,993 Liabilities: Repurchase agreements - short-term $ 185,364 $ — $ 185,364 $ — $ 185,364 Repurchase agreements - long-term 303,517 — 303,517 — 303,517 Mortgage loan financing 477,719 — — 464,499 464,499 CLO debt 1,047,893 — 1,046,700 — 1,046,700 Borrowings from the FHLB 90,000 — — 90,000 90,000 Senior unsecured notes 1,573,614 — — 1,472,537 1,472,537 $ — $ 1,535,581 $ 2,027,036 $ 3,562,617 (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 $49.1 million at March 31, 2024. (6) A lower of cost or market adjustment was recorded as of March 31, 2024. (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, 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) $ 430,398 $ — $ 415,935 $ — $ 415,935 CMBS interest-only(1) 868,228 (2) — 6,260 — 6,260 GNMA interest-only(3) 37,053 (2) — 213 — 213 Agency securities(1) 22 — 21 — 21 U.S. Treasury securities 54,031 53,716 — — 53,716 Equity securities N/A 144 — — 144 Nonhedge derivatives(4) 194,900 — 1,454 — 1,454 $ 53,860 $ 423,883 $ — $ 477,743 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) $ 3,164,226 $ — $ — $ 3,150,843 $ 3,150,843 Mortgage loan receivable held for sale(6) 31,350 — — 26,868 26,868 CMBS(7) 9,281 — 8,955 — 8,955 CMBS interest-only(7) 8,327 — 309 — 309 FHLB stock 5,175 — — 5,175 5,175 $ — $ 9,264 $ 3,182,886 $ 3,192,150 Liabilities: Repurchase agreements - short-term $ 337,631 $ — $ 337,631 $ — $ 337,631 Repurchase agreements - long-term 268,976 — 268,976 — 268,976 Mortgage loan financing 437,384 — — 425,992 425,992 CLO debt 1,062,777 — 1,060,719 — 1,060,719 Borrowings from the FHLB 115,000 — — 115,000 115,000 Senior unsecured notes 1,575,614 — — 1,475,303 1,475,303 $ — $ 1,667,326 $ 2,016,295 $ 3,683,621 (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 $43.2 million at December 31, 2023. (6) A lower of cost or market adjustment was recorded as of December 31, 2023. (7) Restricted securities which are designated as risk retention securities under the Dodd-Frank Act and are therefore subject to transfer restrictions over the term of the securitization trust, are classified as held-to-maturity and reported at amortized cost. The Company did not have any Level 3 financial instruments as of March 31, 2024. The following table summarizes changes in Level 3 financial instruments reported at fair value on the consolidated statements of financial condition for the three months ended March 31, 2023 ($ in thousands): Three Months Ended March 31, Level 3 2023 Balance at January 1, $ 542,646 Transfer into level 3 — Purchases 546 Sales (10,689) Paydowns/maturities (49,180) Amortization of premium/discount (880) Unrealized gain/(loss) 3,616 Realized gain/(loss) on sale (312) Balance at March 31, $ 485,747 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 for certain assets measured on a nonrecurring basis. |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2024 | |
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 $0.6 million and $0.9 million for the three months ended March 31, 2024 and March 31, 2023, respectively. As of March 31, 2024 and December 31, 2023, the Company’s net deferred tax assets (liabilities) were $(4.3) million and $(3.0) 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 $1.3 million and $0.8 million for the three months ended March 31, 2024 and March 31, 2023, 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 the Company’s 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, 2024, the Company had $2.9 million of deferred tax assets relating to capital losses which it may only use to offset capital gains. These tax attributes will begin to expire if unused by December 31, 2024. As the realization of these assets are not more likely than not to be realized before their expiration, 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, 2024, the tax years 2020-2023 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 and also under audit in New York City for tax years 2014-2020. The Company does not expect these audits to result in any material changes to the Company’s financial position or performance. 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, 2024 and December 31, 2023, the Company did not have any unrecognized tax benefit. As of March 31, 2024, 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, 2024 | |
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, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 17. COMMITMENTS AND CONTINGENCIES Leases As of March 31, 2024, the Company had a $(16.2) million lease liability and a $14.4 million right-of-use asset on its consolidated balance sheets recorded within other liabilities other assets Future minimum lease payments under non-cancelable operating leases as of March 31, 2024 are as follows ($ in thousands): 2024 (last nine months) $ 1,650 2025 2,207 2026 2,219 2027 2,232 2028 2,306 Thereafter 11,038 Total undiscounted cash flows 21,652 Present value discount (1) (5,487) Lease liabilities (2) $ 16,165 (1) Lease liabilities were discounted at the Company's weighted average incremental borrowing rate for similar collateral, which was estimated to be 6.62%. The remaining lease term is 9.3 years. (2) The Company has a five-year extension option, which is not reflected in the total lease liability. Unfunded Loan Commitments As of March 31, 2024, the Company’s off-balance sheet arrangements consisted of $128.1 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. 61% of these 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, 2023, the Company’s off-balance sheet arrangements consisted of $204.0 million of unfunded commitments on mortgage loan receivables held for investment to provide additional first mortgage loan financing. Commitments are subject to the Company’s 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 As of December 31, 2023, the Company had $44.8 million of U.S. Treasury securities traded and not yet settled on its consolidated balance sheets. The U.S. Treasury securities are recorded within other assets, and the related payable is recorded within other liabilities. These balances relate to the Company’s purchase of U.S. Treasury securities with maturities of less than three months, which will be recorded within cash and cash equivalents upon settlement. The payable within other liabilities was paid during the three months ended March 31, 2024. |
SEGMENT REPORTING
SEGMENT REPORTING | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | 18. SEGMENT REPORTING The Company has determined that it has three reportable segments based on how the chief operating decision makers review and manage the business. These reportable segments include loans, securities, and real estate. The loans segment includes mortgage loan receivables held for investment (balance sheet loans) and mortgage loan receivables held for sale (conduit loans). The securities segment is composed of all of the Company’s activities related to securities, which include investments in CMBS, U.S. Agency securities, corporate bonds, equity securities and U.S. Treasury securities. The real estate segment includes net leased properties, other diversified real estate and investments in unconsolidated ventures. Corporate/other includes cash and cash equivalents, senior unsecured notes, operating expenses, and unallocated items including any inter-segment eliminations necessary to reconcile to consolidated Company totals. The Company evaluates performance based on the following financial measures for each segment ($ in thousands): Three months ended March 31, 2024 Loans Securities Real Estate (1) Corporate/Other(2) Company Interest income $ 73,624 $ 7,892 $ 109 $ 14,287 $ 95,912 Interest expense (29,450) (28) (8,350) (20,943) (58,771) Net interest income (expense) 44,174 7,864 (8,241) (6,656) 37,141 (Provision for) release of loan loss reserves (5,768) — — — (5,768) Net interest income (expense) after provision for (release of) loan reserves 38,406 7,864 (8,241) (6,656) 31,373 Other income (loss) Real estate operating income — — 23,887 — 23,887 Net result from mortgage loan receivables held for sale (3) 943 — — (856) 87 Fee and other income 3,505 76 2 117 3,700 Net result from derivative transactions 640 71 170 3,138 4,019 Earnings (loss) from investment in unconsolidated ventures — — (15) — (15) Gain (loss) on extinguishment of debt — — — 177 177 Total other income (loss) 5,088 147 24,044 2,576 31,855 Costs and expenses Compensation and employee benefits — — — (20,789) (20,789) Operating expenses — — — (4,643) (4,643) Real estate operating expenses — — (9,146) — (9,146) Investment related expenses (1,589) (47) (93) (264) (1,993) Depreciation and amortization — — (8,192) (110) (8,302) Total costs and expenses (1,589) (47) (17,431) (25,806) (44,873) Income tax (expense) benefit — — — (1,925) (1,925) Segment profit (loss) $ 41,905 $ 7,964 $ (1,628) $ (31,811) $ 16,430 Total assets as of March 31, 2024 $ 2,775,840 $ 466,763 $ 740,497 $ 1,339,698 $ 5,322,798 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 Other income (loss) Real estate operating income — — 23,199 — 23,199 Net result from mortgage loan receivables held for sale (194) — — — (194) Fee and other income 1,681 (186) 2 144 1,641 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 Costs and expenses 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 December 31, 2023 $ 3,138,794 $ 485,533 $ 733,319 $ 1,155,031 $ 5,512,677 (1) Includes the Company’s investment in unconsolidated ventures that held real estate of $6.9 million as of March 31, 2024 and December 31, 2023. (2) Corporate/Other represents all corporate level and unallocated items including any inter-segment eliminations necessary to reconcile to consolidated Company totals. This segment also includes the Company’s investment in FHLB stock of $4.1 million as of March 31, 2024 and $5.2 million as of December 31, 2023, and the Company’s senior unsecured notes of $1.6 billion at March 31, 2024 and December 31, 2023. (3) Includes $0.9 million of realized gains from sales of conduit mortgage loans collateralized by net leased properties in the Company’s real estate segment that eliminate in consolidation for the three months ended March 31, 2024. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Mar. 31, 2024 | |
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. |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
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, 2023, 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. |
Transfers of Financial Assets | Transfers of Financial Assets For a transfer of financial assets to be considered a sale, the transfer must meet the sale criteria of ASC 860, which, at the time of the transfer, require that the transferred assets qualify as recognized financial assets and the Company surrender control over the assets. Such surrender requires that the assets be isolated from the Company, even in bankruptcy or other receivership, the purchaser have the right to pledge or sell the assets transferred and the Company not have an option or obligation to reacquire the assets. If the sale criteria are not met, the transfer is considered to be a secured borrowing, the assets remain on the Company’s consolidated balance sheets and the sale proceeds are recognized as a liability. In November 2017, the SEC staff indicated that, despite transfer restrictions placed on qualified Third Party Purchasers by the risk retention rules of the Dodd-Frank Act, they would not take exception to a registrant treating transfers of financial instruments in a securitization as sales if the transfers otherwise met all the criteria for sale accounting. The Company believes treatment of such transfers as sales is consistent with the substance of such transactions and, accordingly, reflects such transfers as sales. The Company recognizes gains on sale of loans net of any costs related to that sale. |
Debt Issued | Debt Issued From time to time, a subsidiary of the Company will originate a loan (each, an “inter-segment loan,” and collectively, “inter-segment loans”) to another subsidiary of the Company to finance the purchase of real estate. The mortgage loan receivable and the related obligation do not appear in the Company’s consolidated balance sheets as they are eliminated upon consolidation. Once the Company issues (sells) an inter-segment loan to a third-party securitization trust (for cash), the related mortgage note is recognized as a financing transaction and accounted for under ASC 470. The accounting for the securitization of an inter-segment loan—a financial instrument that has never been recognized in the consolidated financial statements as an asset—is considered a financing transaction under ASC 470, and ASC 835 |
Reclassification | Reclassification |
Recently Adopted Accounting Pronouncements and Recent Accounting Pronouncements Pending Adoption | Recently Adopted Accounting Pronouncements None. Recent Accounting Pronouncements Pending Adoption In November 2023, the FASB issued ASU 2023-07—Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU 2023-07”). ASU 2023-07 improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024, early adoption is permitted. The amendments should be applied retrospectively to all prior periods presented in the financial statements. Upon transition, the segment expense categories and amounts disclosed in the prior periods should be based on the significant segment expense categories identified and disclosed in the period of adoption. The Company is currently evaluating the impact of the update on the Company’s consolidated financial statements. In December 2023, the FASB issued ASU 2023-09—Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”). ASU 2023-09 improves the transparency of income tax disclosures related to rate reconciliation and income taxes. ASU 2023-07 is effective for annual periods beginning after December 15, 2024. For entities other than public business entities, the amendments are effective for annual periods beginning after December 15, 2025. Early adoption is permitted for annual financial statements that have not yet been issued or made available for issuance. The amendments should be applied prospectively, however retrospective application is permitted. The Company is currently evaluating the impact of the update on the Company’s consolidated financial statements. Any new accounting standards not disclosed above that have been issued or proposed by FASB and that do not require adoption until a future date are being evaluated or 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, 2024 | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Abstract] | |
Schedule of Mortgage Loan Receivables | March 31, 2024 ($ in thousands) Outstanding Carrying Weighted Remaining Mortgage loan receivables held for investment, net, at amortized cost: First mortgage loans $ 2,787,559 $ 2,781,618 9.41 % 0.7 Mezzanine loans 16,360 16,327 11.21 % 1.4 Total mortgage loans receivable 2,803,919 2,797,945 9.42 % 0.7 Allowance for credit losses N/A (49,060) Total mortgage loan receivables held for investment, net, at amortized cost 2,803,919 2,748,885 Mortgage loan receivables held for sale: First mortgage loans 31,350 26,955 (4) 4.57 % 7.9 Total $ 2,835,269 $ 2,775,840 (5) 9.38 % 0.8 (1) Includes the impact of interest rate floors. Term SOFR rates in effect as of March 31, 2024 are used to calculate weighted average yield for floating rate loans. (2) Excludes two non-accrual loans with an amortized cost basis of $72.8 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 1.7 years. (4) As a result of changes in prevailing rates, the Company recorded a reversal of lower of cost or market adjustment as of March 31, 2024. The adjustment was calculated using a 5.28% discount rate. (5) Net of $6.0 million of deferred origination fees and other items as of March 31, 2024. December 31, 2023 ($ in thousands) Outstanding Carrying Weighted Remaining Mortgage loan receivables held for investment, net, at amortized cost: First mortgage loans $ 3,131,803 $ 3,122,707 9.63 % 0.7 Mezzanine loans 32,423 32,382 11.46 % 0.9 Total mortgage loans receivable 3,164,226 3,155,089 9.65 % 0.7 Allowance for credit losses — (43,165) Total mortgage loan receivables held for investment, net, at amortized cost 3,164,226 3,111,924 Mortgage loan receivables held for sale: First mortgage loans 31,350 26,868 (4) 4.57 % 8.2 Total $ 3,195,576 $ 3,138,792 (5) 9.61 % 0.7 (1) Includes the impact from interest rate floors. Term SOFR rates in effect as of December 31, 2023 are used to calculate weighted average yield for floating rate loans. (2) Excludes one non-accrual loan with an amortized cost basis of $14.5 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 1.8 years. (4) As a result of rising prevailing rates, the Company recorded a lower of cost or market adjustment as of December 31, 2023. The adjustment was calculated using a 5.18% discount rate. (5) Net of $9.1 million of deferred origination fees and other items as of December 31, 2023. |
Schedule of Mortgage Loan Receivables by Loan Type | For the three months ended March 31, 2024 and 2023, loan portfolio activity was as follows ($ in thousands): Mortgage loan receivables held for investment, net, at amortized cost: Mortgage loans receivable Allowance for credit losses Mortgage loan Balance, December 31, 2023 $ 3,155,089 $ (43,165) $ 26,868 Origination of mortgage loan receivables (1) 48,702 — — Repayment of mortgage loan receivables (2) (395,345) — — Proceeds from sales of mortgage loan receivables (3) — — — Non-cash disposition of loans via foreclosure (4) (14,541) — — Net result from mortgage loan receivables held for sale (5) — — 87 Accretion/amortization of discount, premium and other fees 4,040 — — Release (addition) of provision for current expected credit loss, net (6) — (5,895) — Balance, March 31, 2024 $ 2,797,945 $ (49,060) $ 26,955 (1) Includes funding of commitments on existing mortgage loans. (2) Includes $32.5 million of proceeds received from repayments in transit. (3) Excludes $40.4 million of proceeds received from the sale of conduit mortgage loans collateralized by net leased properties in the Company’s real estate segment to a third-party securitization trust. The mortgage loan receivable and the related obligation do not appear in the Company’s consolidated balance sheets as they are eliminated upon consolidation. Upon the sale of the mortgage loan receivable to a third-party securitization trust (for cash), the related mortgage note is recognized as a financing transaction. (4) Refer to Note 5, Real Estate and Related Lease Intangibles, Net, for further detail on foreclosure of real estate. (5) Includes unrealized lower of cost or market adjustment and realized gain/loss on loans held for sale. (6) 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, 2022 $ 3,885,746 $ (20,755) $ 27,391 Origination of mortgage loan receivables (1) 32,616 — — Repayment of mortgage loan receivables (131,272) — — Net result from mortgage loan receivables held for sale (2) — — (194) Accretion/amortization of discount, premium and other fees 6,985 — — Release (addition) of provision for current expected credit loss, net (3) — (4,744) — Balance, March 31, 2023 $ 3,794,075 $ (25,499) $ 27,197 (1) Includes funding of commitments on existing mortgage loans. (2) Includes unrealized lower of cost or market adjustment and realized gain/loss 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 2024 2023 Allowance for credit losses at beginning of period $ 43,165 $ 20,755 Provision for (release of) current expected credit loss, net (1) 5,895 4,744 Allowance for credit losses at end of period $ 49,060 $ 25,499 (1) There were no asset-specific reserves recorded for the three months ended March 31, 2024 and 2023. Non-Accrual Status (1) March 31, 2024(2) December 31, 2023(3) Amortized cost basis of loans on non-accrual status $ 72,766 $ 14,541 (1) As of March 31, 2024 and December 31, 2023, the loans on non-accrual status were greater than 90 days past due and are considered collateral dependent. (2) Comprised of two multi-family loans with an amortized cost basis of $72.8 million, for which the Company determined no asset-specific reserve was necessary. (3) Comprised of one multi-family loan with an amortized cost basis of $14.5 million, for which the Company determined no asset-specific reserve was necessary. |
Schedule of Individually Impaired Loans | Management’s method for monitoring credit is the performance of a loan. The primary credit quality indicator management utilizes to assess its current expected credit loss reserve is by viewing the Company’s mortgage loan portfolio by collateral type. The primary credit quality indicator is reviewed by management on a quarterly basis. The following tables summarize the amortized cost of the mortgage loan portfolio by collateral type as of March 31, 2024 and December 31, 2023, respectively ($ in thousands): Amortized Cost Basis by Origination Year as of March 31, 2024 Collateral Type 2024 2023 2022 2021 2020 and Earlier Total Multifamily $ 37,620 $ 14,505 $ 389,862 $ 525,115 $ — $ 967,102 Office — — 79,254 604,862 198,355 882,471 Mixed Use — — 176,976 287,198 — 464,174 Industrial — — 250 34,796 119,341 154,387 Manufactured Housing — — 12,948 79,085 4,712 96,745 Retail — — — 18,609 55,384 73,993 Hospitality — — 32,695 82,955 — 115,650 Other — — 31,430 11,993 — 43,423 Subtotal mortgage loans receivable 37,620 14,505 723,415 1,644,613 377,792 2,797,945 Individually Impaired loans — — — — — — Total mortgage loans receivable (1) $ 37,620 $ 14,505 $ 723,415 $ 1,644,613 $ 377,792 $ 2,797,945 Amortized Cost Basis by Origination Year as of December 31, 2023 Collateral Type 2023 2022 2021 2020 2019 and Earlier Total (2) Multifamily $ 14,461 $ 547,532 $ 612,489 $ — $ — $ 1,174,482 Office — 79,148 614,743 — 211,674 905,565 Mixed Use — 193,470 321,514 — 41,403 556,387 Industrial — 22,636 34,746 — 119,344 176,726 Manufactured Housing — 32,655 82,895 — — 115,550 Retail — 12,934 87,052 — 9,083 109,069 Hospitality — — 18,589 — 55,380 73,969 Other — 31,363 11,978 — — 43,341 Subtotal mortgage loans receivable 14,461 919,738 1,784,006 — 436,884 3,155,089 Individually Impaired loans — — — — — — Total mortgage loans receivable (3) $ 14,461 $ 919,738 $ 1,784,006 $ — $ 436,884 $ 3,155,089 (1) Not included above is $21.3 million of accrued interest receivable on all loans at March 31, 2024. (2) For the year ended December 31, 2023, there was a $2.7 million of write-off of an asset-specific allowance in connection with a foreclosure of one retail property in New York, NY. (3) Not included above is $22.4 million of accrued interest receivable |
SECURITIES (Tables)
SECURITIES (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Securities Which are Classified as Available-for-sale | The following is a summary of the Company’s securities at March 31, 2024 and December 31, 2023 ($ in thousands): March 31, 2024 Gross Unrealized Weighted Average Asset Type Outstanding Amortized Cost Basis Gains Losses (1) Carrying # of Rating (2) Coupon % Yield % Remaining CMBS $ 470,399 $ 469,640 $ 503 $ (10,534) $ 459,609 (3) 65 AAA 6.68 % 6.85 % 1.92 CMBS interest-only(4) 866,295 (4) 5,583 199 (29) 5,753 (5) 9 AAA 0.56 % 6.94 % 1.01 GNMA interest-only(6) 36,699 (4) 196 58 (52) 202 13 AAA 0.36 % 6.08 % 3.39 Agency securities 19 20 — (1) 19 1 AAA 4.00 % 2.69 % 0.93 U.S. Treasury securities 1,058 1,051 18 — 1,069 3 AAA N/A 5.25 % 0.22 Total debt securities $ 1,374,470 $ 476,490 $ 778 $ (10,616) $ 466,652 (7) 91 2.65 % 6.84 % 1.91 Equity securities N/A 160 — (29) 131 1 N/A N/A N/A N/A Allowance for current expected credit losses N/A — — (20) (20) Total securities $ 1,374,470 $ 476,650 $ 778 $ (10,665) $ 466,763 92 December 31, 2023 Gross Unrealized Weighted Average Asset Type Outstanding Amortized Gains Losses (1) Carrying # of Rating (2) Coupon % Yield % Remaining CMBS $ 439,679 $ 439,052 $ 277 $ (14,439) $ 424,890 (3) 64 AAA 6.67 % 6.83 % 2.00 CMBS interest-only(4) 876,555 (4) 6,453 169 (53) 6,569 (5) 9 AAA 0.57 % 6.61 % 1.07 GNMA interest-only(6) 37,053 (4) 214 51 (52) 213 14 AAA 0.36 % 6.12 % 3.60 Agency securities 22 22 — (1) 21 1 AAA 4.00 % 2.70 % 1.05 U.S. Treasury securities 54,031 53,648 68 — 53,716 7 AAA N/A 5.41 % 0.07 Total debt securities $ 1,407,340 $ 499,389 $ 565 $ (14,545) $ 485,409 (7) 95 2.55 % 6.82 % 1.98 Equity securities N/A 160 — (16) 144 1 N/A N/A N/A N/A Allowance for current expected credit losses N/A — — (20) (20) Total securities $ 1,407,340 $ 499,549 $ 565 $ (14,581) $ 485,533 96 (1) 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. (2) Represents the weighted average of the ratings of all securities in each asset type, expressed as an S&P equivalent rating. For each security rated by multiple rating agencies, the highest rating is used. 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. (3) As of March 31, 2024 and December 31, 2023, includes $8.9 million and $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. (4) The amounts presented represent the principal amount of the mortgage loans outstanding in the pool in which the interest-only securities participate. (5) As of March 31, 2024 and December 31, 2023, includes $0.3 million of restricted securities which are designated as risk retention securities under the Dodd-Frank Act and are therefore subject to transfer restrictions over the term of the securitization trust and are classified as held-to-maturity and reported at amortized cost. (6) GNMA interest-only securities are recorded at fair value with changes in fair value recorded in current period earnings. The Company’s GNMA interest-only securities are considered to be hybrid financial instruments that contain embedded derivatives. As a result, the Company has elected to account for them as hybrid instruments in their entirety at fair value with changes in fair value recognized in unrealized gain (loss) on securities in the consolidated statements of income. (7) The Company’s investments in debt securities represent an ownership interest in unconsolidated VIEs. The Company’s maximum exposure to loss from these unconsolidated VIEs is the amortized cost basis of the securities which represents the purchase price of the investment adjusted by any unamortized premiums or discounts as of the reporting date. The following summarizes the Company’s realized and unrealized gain (loss) on securities, included within “Fee and Other Income” on the Company’s consolidated statements of income for the three months ended March 31, 2024 and March 31, 2023 ($ in thousands): Three Months Ended March 31, 2024 2023 Realized gain/(loss) 53 (307) Unrealized gain/(loss) $ (7) $ 117 Total realized and unrealized gain/(loss) on securities $ 46 $ (190) |
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, 2024 and December 31, 2023 ($ in thousands): March 31, 2024 Asset Type Within 1 year 1-5 years 5-10 years Total CMBS $ 73,296 $ 371,882 $ 14,431 $ 459,609 CMBS interest-only 2,218 3,535 — 5,753 GNMA interest-only 82 21 99 202 Agency securities 19 — — 19 U.S. Treasury securities 1,069 — — 1,069 Total securities (1) $ 76,684 $ 375,438 $ 14,530 $ 466,652 (1) Excluded from the table above are $0.1 million of equity securities and $(20.0) thousand of allowance for current expected credit losses. December 31, 2023 Asset Type Within 1 year 1-5 years 5-10 years Total CMBS $ 81,343 $ 343,547 $ — $ 424,890 CMBS interest-only 2,121 4,448 — 6,569 GNMA interest-only 86 22 105 213 Agency securities — 21 — 21 U.S. Treasury securities 53,716 — 53,716 Total securities (1) $ 137,266 $ 348,038 $ 105 $ 485,409 (1) Excluded from the table above are $0.1 million of equity securities and $(20.0) thousand of allowance for current expected credit losses. |
REAL ESTATE AND RELATED LEASE_2
REAL ESTATE AND RELATED LEASE INTANGIBLES, NET (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Real Estate [Abstract] | |
Schedule of Real Estate Properties by Category | The Company’s real estate assets were comprised of the following ($ in thousands): March 31, 2024 December 31, 2023 Land $ 189,242 $ 183,194 Building 656,460 647,201 In-place leases and other intangibles 117,006 116,831 Undepreciated real estate and related lease intangibles 962,708 947,226 Less: Accumulated depreciation and amortization (229,073) (220,784) Real estate and related lease intangibles, net(1) $ 733,635 $ 726,442 Below market lease intangibles, net (other liabilities)(2) $ (28,330) $ (28,860) (1) There was unencumbered real estate of $172.4 million and $160.8 million as of March 31, 2024 and December 31, 2023, respectively. (2) Below market lease intangibles is net of $16.3 million and $15.8 million of accumulated amortization as of March 31, 2024 and December 31, 2023, respectively. |
Schedule of Depreciation and Amortization Expense Recorded | The following table presents depreciation and amortization expense on real estate recorded by the Company ($ in thousands): Three Months Ended March 31, 2024 2023 Depreciation expense(1) $ 6,389 $ 6,200 Amortization expense 1,913 1,329 Total real estate depreciation and amortization expense $ 8,302 $ 7,529 (1) Depreciation expense on the consolidated statements of income also includes $0.1 million of depreciation on corporate fixed assets for the three months ended March 31, 2024 and March 31, 2023. |
Schedule of Lease Intangible Assets | The Company’s intangible assets are comprised of in-place leases, above market leases and other intangibles. The following tables present additional detail related to the intangible assets ($ in thousands): March 31, 2024 December 31, 2023 Gross intangible assets(1) $ 117,006 $ 116,831 Accumulated amortization 57,792 55,782 Net intangible assets $ 59,214 $ 61,049 (1) Includes $2.7 million and $2.8 million of unamortized above market lease intangibles, which are included in real estate and related lease intangibles, net on the consolidated balance sheets as of March 31, 2024 and December 31, 2023. The following table presents increases/reductions in operating lease income related to the amortization of above or below market leases recorded by the Company ($ in thousands): Three Months Ended March 31, 2024 2023 Reduction in operating lease income for amortization of above market lease intangibles acquired $ (97) $ (72) Increase in operating lease income for amortization of below market lease intangibles acquired 529 526 Total $ 432 $ 454 |
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, 2024 ($ in thousands): Period Ending December 31, Increase/(Decrease) to Operating Lease Income Amortization Expense 2024 (last nine months) $ 1,289 $ 4,987 2025 1,721 5,178 2026 1,735 4,519 2027 1,699 4,332 2028 1,625 4,167 Thereafter 17,532 33,304 Total $ 25,601 $ 56,487 |
Schedule of Contractual Future Minimum Rent Under Leases | 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, 2024 ($ in thousands): Period Ending December 31, Amount 2024 (last nine months) $ 49,731 2025 60,708 2026 53,016 2027 47,820 2028 45,271 Thereafter 160,837 Total $ 417,383 |
Schedule of Real Estate Properties Acquired | The Company acquired the following properties during the three months ended March 31, 2024 ($ in thousands): Acquisition Date Type Primary Location(s) Purchase Price/Fair Value on the Date of Foreclosure Ownership Interest (1) February 2024 (2) Multifamily Los Angeles, CA $ 14,110 100% Total real estate acquisitions $ 14,110 (1) Properties were consolidated as of acquisition date. (2) In February 2024, the Company acquired a multifamily portfolio consisting of three properties in Los Angeles, CA via foreclosure. The portfolio served as collateral for a mortgage loan receivable held for investment. The Company obtained a third-party appraisal of the property. The $14.1 million fair value was determined by using the sales comparison and income approaches. The appraiser utilized a terminal capitalization rate of 5.5%. There was no gain or loss resulting from the foreclosure of the loan. The key inputs used to determine fair value were determined to be Level 3 inputs. |
DEBT OBLIGATIONS, NET (Tables)
DEBT OBLIGATIONS, NET (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of Debt Obligations | The details of the Company’s debt obligations at March 31, 2024 and December 31, 2023 are as follows ($ in thousands): March 31, 2024 Debt Obligations Committed / Carrying Value of Debt Obligations Committed but Unfunded Interest Rate at March 31, 2024(1) Current Term Maturity Remaining Extension Options Eligible Collateral Carrying Amount of Collateral Fair Value of Collateral Committed Loan Repurchase Facility $ 500,000 $ 232,114 $ 267,886 7.07% — 7.47% 9/27/2025 (2) (3) $ 339,160 $ 339,160 Committed Loan Repurchase Facility 300,000 80,743 219,257 7.42% — 8.32% 12/19/2024 (4) (5) 111,560 111,560 Committed Loan Repurchase Facility 141,997 102,956 39,041 7.02% — 7.57% 4/30/2024 (6) (3) 65,210 65,210 (7) Committed Loan Repurchase Facility 200,000 71,403 128,597 7.72% — 8.27% 10/3/2025 (8) (3) 97,193 97,374 Committed Loan Repurchase Facility 100,000 — 100,000 —% —% 1/22/2025 (9) (5) — — Total Committed Loan Repurchase Facilities 1,241,997 487,216 754,781 613,123 613,304 Committed Securities Repurchase Facility 100,000 — 100,000 —% — —% 5/27/2024 N/A (10) — — Uncommitted Securities Repurchase Facility N/A (11) 1,665 N/A (11) 6.52% — 7.47% 4/16/2024 N/A (10) 2,509 2,509 (12) Total Repurchase Facilities 1,341,997 488,881 854,781 615,632 615,813 Revolving Credit Facility 323,850 — 323,850 —% — —% 1/25/2025 (13) N/A (14) N/A (14) N/A (14) Mortgage Loan Financing 477,719 478,797 — 4.39% — 9.03% 2024-2034 (15) N/A (16) 505,023 683,438 (17) CLO Debt 1,047,893 1,046,700 (18) — 6.64% — 9.09% 2024-2026 (19) N/A (3) 1,294,873 1,294,873 Borrowings from the FHLB 90,000 90,000 — 5.70% — 5.82% 2024 N/A (20) 109,870 109,870 Senior Unsecured Notes 1,573,614 1,562,651 (21) — 4.25% — 5.25% 2025-2029 N/A N/A (22) N/A (22) N/A (22) Total Debt Obligations, Net $ 4,855,073 $ 3,667,029 $ 1,178,631 $ 2,525,398 $ 2,703,994 (1) Interest rates on floating rate debt reflect the applicable index in effect as of March 31, 2024. (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 364-day period 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) The Company has pledged mortgage loans receivable with a value of $69.4 million that eliminates in consolidation and is thus not included in the carrying amount of collateral or fair value of collateral. (8) Two additional 12-month extension periods at Company’s option. No new advances permitted past 30 days prior to initial maturity. (9) One additional 12-month extension period at Company's option. No new advances permitted during the final 12-month period. (10) Commercial real estate securities. It does not include the first mortgage commercial real estate loans collateralizing such securities. (11) Represents uncommitted securities repurchase facilities for which there is no committed amount subject to future advances. (12) 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. (13) Four additional 12-month periods at Company’s option. (14) 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. (15) Anticipated repayment dates. (16) Certain of the Company’s real estate investments serve as collateral for the Company’s mortgage loan financing. (17) Represents undepreciated carrying value of commercial real estate collateral. (18) Presented net of unamortized debt issuance costs of $1.2 million at March 31, 2024. (19) Represents the estimated maturity date based on the underlying loan maturities. (20) Investment grade commercial real estate securities. It does not include the first mortgage commercial real estate loans collateralizing such securities. (21) Presented net of unamortized debt issuance costs of $11.0 million at March 31, 2024. (22) The obligations under the senior unsecured notes are guaranteed by the Company and certain of its subsidiaries. December 31, 2023 Debt Obligations Committed / Carrying Value of Debt Obligations Committed but Unfunded Interest Rate at December 31, 2022(1) Current Term Maturity Remaining Extension Options Eligible Collateral Carrying Amount of Collateral Fair Value of Collateral Committed Loan Repurchase Facility $ 500,000 $ 235,594 $ 264,406 7.08% — 7.48% 9/27/2025 (2) (3) $ 342,467 $ 342,467 Committed Loan Repurchase Facility 300,000 118,903 181,097 7.46% — 8.36% 12/19/2024 (4) (5) 174,938 174,938 Committed Loan Repurchase Facility 141,997 139,162 2,835 7.06% — 7.60% 4/30/2024 (6) (3) 65,110 65,110 (7) Committed Loan Repurchase Facility 200,000 111,340 88,660 7.22% — 8.29% 10/3/2025 (8) (3) 150,280 150,559 Committed Loan Repurchase Facility 100,000 — 100,000 —% — —% 1/22/2024 (9) (5) — — Total Committed Loan Repurchase Facilities 1,241,997 604,999 636,998 732,795 733,074 Committed Securities Repurchase Facility 100,000 — 100,000 —% — —% 5/27/2024 N/A (10) — — Uncommitted Securities Repurchase Facility N/A (11) 1,608 N/A (11) 6.61% — 7.56% 1/17/2024 N/A (10) 2,511 2,511 (12) Total Repurchase Facilities 1,341,997 606,607 736,998 735,306 735,585 Revolving Credit Facility 323,850 — 323,850 —% — —% 7/27/2024 (13) N/A (14) N/A (14) N/A (14) Mortgage Loan Financing 437,384 437,759 — 4.39% — 9.03% 2024-2031 (15) N/A (16) 474,740 625,454 (17) CLO Debt 1,062,777 1,060,719 (18) — 6.68% — 9.13% 2024-2026 (19) N/A (3) 1,327,722 1,327,722 Borrowings from the FHLB 115,000 115,000 — 5.76% — 5.88% 2024 N/A (20) 140,276 140,276 Senior Unsecured Notes 1,575,614 1,563,861 (21) — 4.25% — 5.25% 2025-2029 N/A N/A (22) N/A (22) N/A (22) Total Debt Obligations, Net $ 4,856,622 $ 3,783,946 $ 1,060,848 $ 2,678,044 $ 2,829,037 (1) Interest rates on floating rate debt reflect the applicable index in effect as of December 31, 2023. (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 364-day period 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) The Company has pledged mortgage loans receivable with a value of $114.7 million that eliminates in consolidation and is thus not included in the carrying amount of collateral or fair value of collateral. (8) Two additional 12-month extension periods at Company’s option. No new advances permitted past 30 days prior to initial maturity. (9) Two additional 12-month extension periods at Company's option. No new advances permitted during the final 12-month period. (10) Commercial real estate securities. It does not include the first mortgage commercial real estate loans collateralizing such securities. (11) Represents uncommitted securities repurchase facilities for which there is no committed amount subject to future advances. (12) 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. (13) Three additional 12-month periods at Company’s option. (14) 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. (15) Anticipated repayment dates. (16) Certain of the Company’s real estate investments serve as collateral for the Company’s mortgage loan financing. (17) Represents undepreciated carrying value of commercial real estate collateral. (18) Presented net of unamortized debt issuance costs of $2.1 million at December 31, 2023. (19) Represents the estimated maturity date based on the remaining reinvestment period and underlying loan maturities. (20) Investment grade commercial real estate securities. It does not include the first mortgage commercial real estate loans collateralizing such securities. (21) Presented net of unamortized debt issuance costs of $11.8 million at December 31, 2023. (22) The obligations under the senior unsecured notes are guaranteed by the Company and certain of its subsidiaries. |
Schedule of Contractual Payments Under All Borrowings by Maturity | The following schedule reflects the Company’s contractual payments under borrowings by maturity ($ in thousands): Period ending December 31, Borrowings by 2024 (last nine months) $ 292,412 2025 581,685 2026 138,170 2027 873,755 2028 24,317 Thereafter 719,874 Subtotal 2,630,213 Debt issuance costs included in senior unsecured notes (10,963) Debt issuance costs included in mortgage loan financings (1,444) Premiums included in mortgage loan financings (2) 2,522 Total (3) $ 2,620,328 (1) The allocation of repayments under the Company’s 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 conduit mortgage mortgage loans sold into securitizations, collateralized by net leased properties in the Company’s real estate segment. These premiums are amortized as a reduction to interest expense. (3) |
DERIVATIVE INSTRUMENTS (Tables)
DERIVATIVE INSTRUMENTS (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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, 2024 and December 31, 2023 ($ in thousands): March 31, 2024 Fair Value Remaining Contract Type Notional Asset(1) Liability(1) Caps 1 Month Term SOFR $ 90,000 $ 660 $ — 0.38 Futures 5-year Treasury-Note Futures 500 — — 0.25 10-year Treasury-Note Futures 26,200 14 — 0.25 Total futures 26,700 14 — Total derivatives $ 116,700 $ 674 $ — (1) Shown as derivative instruments in the accompanying consolidated balance sheets. December 31, 2023 Fair Value Remaining Contract Type Notional Asset(1) Liability(1) Caps 1 Month Term SOFR $ 90,000 $ 908 $ — 0.62 Futures 5-year Treasury-Note Futures 18,800 98 — 0.25 10-year Treasury-Note Futures 86,100 447 — 0.25 Total futures 104,900 545 — Options Options N/A (2) 1 — 0.05 Total derivatives $ 194,900 $ 1,454 $ — (1) Shown as derivative instruments in the accompanying consolidated balance sheets. (2) The Company held 104 options contracts as of December 31, 2023. |
Schedule of Net Realized Gains/(Losses) and Unrealized Appreciation/(Depreciation) on Derivatives | The following table summarizes the net realized gains (losses) and unrealized gains (losses) 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, 2024 and 2023 ($ in thousands): Three Months Ended March 31, 2024 Contract Type Unrealized Realized Net Result Caps $ (248) $ 418 $ 170 Futures (532) 4,382 3,850 Options — (1) (1) Total $ (780) $ 4,799 $ 4,019 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) |
OFFSETTING ASSETS AND LIABILI_2
OFFSETTING ASSETS AND LIABILITIES (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Offsetting [Abstract] | |
Schedule of Offsetting of Financial Assets | The following table represents offsetting of financial assets and derivative assets as of March 31, 2024 ($ in thousands): Description Gross amounts of Gross amounts Net amounts of Gross amounts not offset in the Net amount Financial Cash collateral Derivatives $ 674 $ — $ 674 $ — $ (741) $ (67) Total $ 674 $ — $ 674 $ — $ (741) $ (67) (1) Included in restricted cash on consolidated balance sheets. The following table represents offsetting of financial assets and derivative assets as of December 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 $ 1,454 $ — $ 1,454 $ — $ (2,846) $ (1,392) Total $ 1,454 $ — $ 1,454 $ — $ (2,846) $ (1,392) (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, 2024 ($ in thousands): Description Gross amounts of Gross amounts Net amounts of Gross amounts not offset in the Net amount Financial Cash collateral Repurchase agreements $ 488,880 $ — $ 488,880 $ 488,880 $ — $ 488,880 Total $ 488,880 $ — $ 488,880 $ 488,880 $ — $ 488,880 (1) Included in restricted cash on consolidated balance sheets. The following table represents offsetting of financial liabilities and derivative liabilities as of December 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 $ 606,607 $ — $ 606,607 $ 606,607 $ — $ 606,607 Total $ 606,607 $ — $ 606,607 $ 606,607 $ — $ 606,607 (1) Included in restricted cash on consolidated balance sheets. |
CONSOLIDATED VARIABLE INTERES_2
CONSOLIDATED VARIABLE INTEREST ENTITIES (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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, 2024 and December 31, 2023 ($ in thousands): March 31, 2024 December 31, 2023 Mortgage loan receivables held for investment, net, at amortized cost 1,294,873 1,327,722 Accrued interest receivable 9,980 9,394 Other assets 23,864 4,469 Total assets $ 1,328,717 $ 1,341,585 Debt obligations, net $ 1,046,700 $ 1,060,719 Accrued expenses 3,489 3,555 Total liabilities 1,050,189 1,064,274 Net equity in VIEs (eliminated in consolidation) 278,528 277,311 Total equity 278,528 277,311 Total liabilities and equity $ 1,328,717 $ 1,341,585 |
EQUITY STRUCTURE AND ACCOUNTS (
EQUITY STRUCTURE AND ACCOUNTS (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
Schedule of 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, 2024 and 2023 ($ in thousands): Shares Amount(1) Authorizations remaining as of December 31, 2023 $ 44,256 Repurchases paid: March 1, 2024 - March 31, 2024 60,000 (647) Authorizations remaining as of March 31, 2024 $ 43,609 (1) Amount excludes commissions paid associated with share repurchases. Shares Amount(1) Authorizations remaining as of December 31, 2022 $ 46,737 Repurchases paid: March 1, 2023 - March 31, 2023 250,000 (2,285) Authorizations remaining as of March 31, 2023 $ 44,452 (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, 2024 and 2023: Declaration Date Dividend per Share March 15, 2024 $ 0.23 Total $ 0.23 March 15, 2023 $ 0.23 Total $ 0.23 |
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, 2024 and 2023 ($ in thousands): Three Months Ended March 31, 2024 2023 Accumulated Other Comprehensive Income (Loss) beginning of period $ (13,853) $ (21,009) Gain (loss) on available for sale securities, net of tax 4,033 3,485 Accumulated Other Comprehensive Income (Loss) end of period $ (9,820) $ (17,524) |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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, 2024 and 2023 consist of the following: Three Months Ended March 31, ($ in thousands except share amounts) 2024 2023 Basic and Diluted Net income (loss) available for Class A common shareholders $ 16,609 $ 22,408 Weighted average shares outstanding: Basic 125,315,765 124,493,132 Diluted 125,520,373 124,656,102 |
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, 2024 and 2023 consist of the following: Three Months Ended March 31, (In thousands except share and per share amounts) (1) 2024 2023 Basic Net Income (Loss) Per Share of Class A Common Stock Numerator : Net income (loss) attributable to Class A common shareholders $ 16,609 $ 22,408 Denominator : Weighted average number of shares of Class A common stock outstanding 125,315,765 124,493,132 Basic net income (loss) per share of Class A common stock $ 0.13 $ 0.18 Diluted Net Income (Loss) Per Share of Class A Common Stock Numerator: Net income (loss) attributable to Class A common shareholders $ 16,609 $ 22,408 Diluted net income (loss) attributable to Class A common shareholders 16,609 22,408 Denominator: Basic weighted average number of shares of Class A common stock outstanding 125,315,765 124,493,132 Add - dilutive effect of: Incremental shares of unvested Class A restricted stock(1) 204,608 162,970 Diluted weighted average number of shares of Class A common stock outstanding (2) 125,520,373 124,656,102 Diluted net income (loss) per share of Class A common stock $ 0.13 $ 0.18 (1) The Company applies the treasury stock method. (2) There were 378,668 and 390,313 anti-dilutive shares for the three months ended March 31, 2024 and 2023, respectively. |
STOCK-BASED AND OTHER COMPENS_2
STOCK-BASED AND OTHER COMPENSATION PLANS (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Stock Based Compensation Plans | 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, 2024 2023 Stock-based compensation expense $ 10,298 $ 9,124 Total Stock-Based Compensation Expense $ 10,298 $ 9,124 |
Schedule of the Grants | A summary of the grants is presented below: Three Months Ended March 31, 2024 2023 Number Weighted Number Weighted Grants - Class A Common Stock 1,855,541 $ 10.70 1,417,561 $ 11.58 |
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, 2024 and changes during 2024 of the Class A common stock and stock options of Ladder Capital Corp: Restricted Stock Weighted Average Grant Date Fair Value Stock Options Nonvested/Outstanding at December 31, 2023 2,197,963 $ 12.37 623,788 Granted 1,855,541 10.70 — Vested (1,893,138) 10.91 — Forfeited (7,382) 10.87 — Nonvested/Outstanding at March 31, 2024 2,152,984 $ 12.22 623,788 Exercisable at March 31, 2024 (1) 623,788 (1) The weighted average exercise price of outstanding options is $14.84 at March 31, 2024. |
FAIR VALUE OF FINANCIAL INSTR_2
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Summary of Fair Value | The carrying values and estimated fair values of the Company’s financial instruments, which are both reported at fair value on a recurring basis (as indicated) or amortized cost/par, at March 31, 2024 and December 31, 2023 are as follows ($ in thousands): March 31, 2024 Weighted Average Principal Amount Amortized Cost Basis/Purchase Price Fair Value Fair Value Method Yield Remaining Assets: CMBS(1) $ 470,399 $ 469,640 $ 459,609 Internal model 6.85 % 1.92 CMBS interest-only(1) 866,295 (2) 5,583 5,753 Internal model 6.94 % 1.01 GNMA interest-only(3) 36,699 (2) 196 202 Internal model 6.08 % 3.39 Agency securities(1) 19 20 19 Internal model 2.69 % 0.93 U.S. Treasury securities(1) 1,058 1,051 1,069 Internal model 5.25 % 0.22 Equity securities(3) N/A 160 131 Observable market prices N/A N/A Mortgage loan receivables held for investment, net, at amortized cost(4) 2,803,919 2,797,945 2,792,767 Discounted Cash Flow(5) 9.42 % 0.71 Mortgage loan receivables held for sale 31,350 26,955 26,955 Internal model, third-party inputs(6) 4.57 % 7.94 FHLB stock(7) 4,050 4,050 4,050 (7) 9.00 % N/A Nonhedge derivatives(1)(10) 116,700 674 674 Counterparty quotations N/A 0.48 Liabilities: Repurchase agreements - short-term 185,364 185,364 185,364 Cost plus Accrued Interest (8) 7.59 % 0.36 Repurchase agreements - long-term 303,517 303,517 303,517 Discounted Cash Flow(9) 7.38 % 1.50 Mortgage loan financing 477,719 478,797 464,499 Discounted Cash Flow 5.96 % 3.03 CLO debt 1,047,893 1,046,700 1,046,700 Discounted Cash Flow(9) 7.05 % 1.64 Borrowings from the FHLB 90,000 90,000 90,000 Discounted Cash Flow 5.74 % 0.39 Senior unsecured notes 1,573,614 1,562,651 1,472,537 Internal model, third-party inputs 4.66 % 3.52 (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 $49.1 million at March 31, 2024. (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 spreads. 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, 2023 Weighted Average Principal Amount Amortized Cost Basis/Purchase Price Fair Value Fair Value Method Yield Remaining Assets: CMBS(1) $ 439,679 $ 439,052 $ 424,890 Internal model 6.83 % 2.00 CMBS interest-only(1) 876,555 (2) 6,453 6,569 Internal model 6.61 % 1.07 GNMA interest-only(3) 37,053 (2) 214 213 Internal model 6.12 % 3.60 Agency securities(1) 22 22 21 Internal model 2.70 % 1.05 U.S. Treasury securities(1) 54,031 53,648 53,716 Internal model 5.41 % 0.07 Equity securities(3) N/A 160 144 Observable market prices N/A N/A Mortgage loan receivables held for investment, net, at amortized cost(4) 3,164,226 3,155,089 3,150,843 Discounted Cash Flow(5) 9.65 % 0.68 Mortgage loan receivables held for sale 31,350 26,868 26,868 Internal model, third-party inputs(6) 4.57 % 8.19 FHLB stock(7) 5,175 5,175 5,175 (7) 8.25 % N/A Nonhedge derivatives(1)(10) 194,900 1,454 1,454 Counterparty quotations N/A 0.48 Liabilities: Repurchase agreements - short-term 337,631 337,631 337,631 Cost plus Accrued Interest (8) 7.57 % 0.48 Repurchase agreements - long-term 268,976 268,976 268,976 Discounted Cash Flow(9) 7.35 % 1.74 Mortgage loan financing 437,384 437,759 425,992 Discounted Cash Flow 5.87 % 2.64 CLO debt 1,062,777 1,060,719 1,060,719 Discounted Cash Flow(9) 7.08 % 1.89 Borrowings from the FHLB 115,000 115,000 115,000 Discounted Cash Flow 5.82 % 0.57 Senior unsecured notes 1,575,614 1,563,861 1,475,303 Internal model, third-party inputs 4.66 % 3.77 (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 $43.2 million at December 31, 2023. (5) Fair value for floating rate mortgage loan receivables, held for investment is estimated to approximate the outstanding face amount given the short interest rate reset risk (30 days) and no significant change in credit spreads. Fair value for fixed rate mortgage loan receivables, held for investment is measured using a discounted cash flow model. (6) Fair value for mortgage loan receivables, held for sale is measured using a hypothetical securitization model utilizing market data from recent securitization spreads and pricing. (7) Fair value of the FHLB stock approximates outstanding face amount as the Company’s captive insurance subsidiary is restricted from trading the stock and can only put the stock back to the FHLB, at the FHLB’s discretion, at par. (8) For repurchase agreements - short term, the value approximates the cost plus accrued interest. (9) For repurchase agreements - long term and CLO debt, the carrying value approximates the fair value discounting the expected cash flows at current market rates. If the collateral is determined to be impaired, the related financing would be revalued accordingly. There are no impairments on any positions. (10) The outstanding face amount of the nonhedge derivatives represents the notional amount of the underlying contracts. |
Summary of Financial Assets and Liabilities, both reported at Fair Value on a Recurring Basis or Amortized Cost/Par | The following table summarizes the Company’s financial assets and liabilities, which are both reported at fair value on a recurring basis (as indicated) or amortized cost/par, at March 31, 2024 and December 31, 2023 ($ in thousands): March 31, 2024 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) $ 461,152 $ — $ 450,672 $ — $ 450,672 CMBS interest-only(1) 858,003 (2) — 5,469 — 5,469 GNMA interest-only(3) 36,699 (2) — 202 — 202 Agency securities(1) 19 — 19 — 19 U.S. Treasury securities 1,058 1,069 — — 1,069 Equity securities N/A 131 — — 131 Nonhedge derivatives(4) 116,700 — 674 — 674 $ 1,200 $ 457,036 $ — $ 458,236 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) $ 2,803,919 $ — $ — $ 2,792,767 $ 2,792,767 Mortgage loan receivable held for sale(6) 31,350 — — 26,955 26,955 CMBS(7) 9,247 — 8,937 — 8,937 CMBS interest-only(7) 8,292 — 284 — 284 FHLB stock 4,050 — — 4,050 4,050 $ — $ 9,221 $ 2,823,772 $ 2,832,993 Liabilities: Repurchase agreements - short-term $ 185,364 $ — $ 185,364 $ — $ 185,364 Repurchase agreements - long-term 303,517 — 303,517 — 303,517 Mortgage loan financing 477,719 — — 464,499 464,499 CLO debt 1,047,893 — 1,046,700 — 1,046,700 Borrowings from the FHLB 90,000 — — 90,000 90,000 Senior unsecured notes 1,573,614 — — 1,472,537 1,472,537 $ — $ 1,535,581 $ 2,027,036 $ 3,562,617 (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 $49.1 million at March 31, 2024. (6) A lower of cost or market adjustment was recorded as of March 31, 2024. (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, 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) $ 430,398 $ — $ 415,935 $ — $ 415,935 CMBS interest-only(1) 868,228 (2) — 6,260 — 6,260 GNMA interest-only(3) 37,053 (2) — 213 — 213 Agency securities(1) 22 — 21 — 21 U.S. Treasury securities 54,031 53,716 — — 53,716 Equity securities N/A 144 — — 144 Nonhedge derivatives(4) 194,900 — 1,454 — 1,454 $ 53,860 $ 423,883 $ — $ 477,743 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) $ 3,164,226 $ — $ — $ 3,150,843 $ 3,150,843 Mortgage loan receivable held for sale(6) 31,350 — — 26,868 26,868 CMBS(7) 9,281 — 8,955 — 8,955 CMBS interest-only(7) 8,327 — 309 — 309 FHLB stock 5,175 — — 5,175 5,175 $ — $ 9,264 $ 3,182,886 $ 3,192,150 Liabilities: Repurchase agreements - short-term $ 337,631 $ — $ 337,631 $ — $ 337,631 Repurchase agreements - long-term 268,976 — 268,976 — 268,976 Mortgage loan financing 437,384 — — 425,992 425,992 CLO debt 1,062,777 — 1,060,719 — 1,060,719 Borrowings from the FHLB 115,000 — — 115,000 115,000 Senior unsecured notes 1,575,614 — — 1,475,303 1,475,303 $ — $ 1,667,326 $ 2,016,295 $ 3,683,621 (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 $43.2 million at December 31, 2023. (6) A lower of cost or market adjustment was recorded as of December 31, 2023. (7) Restricted securities which are designated as risk retention securities under the Dodd-Frank Act and are therefore subject to transfer restrictions over the term of the securitization trust, are classified as held-to-maturity and reported at amortized cost. |
Schedule of Changes in Level 3 of Financial Instruments | The following table summarizes changes in Level 3 financial instruments reported at fair value on the consolidated statements of financial condition for the three months ended March 31, 2023 ($ in thousands): Three Months Ended March 31, Level 3 2023 Balance at January 1, $ 542,646 Transfer into level 3 — Purchases 546 Sales (10,689) Paydowns/maturities (49,180) Amortization of premium/discount (880) Unrealized gain/(loss) 3,616 Realized gain/(loss) on sale (312) Balance at March 31, $ 485,747 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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, 2024 are as follows ($ in thousands): 2024 (last nine months) $ 1,650 2025 2,207 2026 2,219 2027 2,232 2028 2,306 Thereafter 11,038 Total undiscounted cash flows 21,652 Present value discount (1) (5,487) Lease liabilities (2) $ 16,165 (1) Lease liabilities were discounted at the Company's weighted average incremental borrowing rate for similar collateral, which was estimated to be 6.62%. The remaining lease term is 9.3 years. (2) |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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, 2024 Loans Securities Real Estate (1) Corporate/Other(2) Company Interest income $ 73,624 $ 7,892 $ 109 $ 14,287 $ 95,912 Interest expense (29,450) (28) (8,350) (20,943) (58,771) Net interest income (expense) 44,174 7,864 (8,241) (6,656) 37,141 (Provision for) release of loan loss reserves (5,768) — — — (5,768) Net interest income (expense) after provision for (release of) loan reserves 38,406 7,864 (8,241) (6,656) 31,373 Other income (loss) Real estate operating income — — 23,887 — 23,887 Net result from mortgage loan receivables held for sale (3) 943 — — (856) 87 Fee and other income 3,505 76 2 117 3,700 Net result from derivative transactions 640 71 170 3,138 4,019 Earnings (loss) from investment in unconsolidated ventures — — (15) — (15) Gain (loss) on extinguishment of debt — — — 177 177 Total other income (loss) 5,088 147 24,044 2,576 31,855 Costs and expenses Compensation and employee benefits — — — (20,789) (20,789) Operating expenses — — — (4,643) (4,643) Real estate operating expenses — — (9,146) — (9,146) Investment related expenses (1,589) (47) (93) (264) (1,993) Depreciation and amortization — — (8,192) (110) (8,302) Total costs and expenses (1,589) (47) (17,431) (25,806) (44,873) Income tax (expense) benefit — — — (1,925) (1,925) Segment profit (loss) $ 41,905 $ 7,964 $ (1,628) $ (31,811) $ 16,430 Total assets as of March 31, 2024 $ 2,775,840 $ 466,763 $ 740,497 $ 1,339,698 $ 5,322,798 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 Other income (loss) Real estate operating income — — 23,199 — 23,199 Net result from mortgage loan receivables held for sale (194) — — — (194) Fee and other income 1,681 (186) 2 144 1,641 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 Costs and expenses 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 December 31, 2023 $ 3,138,794 $ 485,533 $ 733,319 $ 1,155,031 $ 5,512,677 (1) Includes the Company’s investment in unconsolidated ventures that held real estate of $6.9 million as of March 31, 2024 and December 31, 2023. (2) Corporate/Other represents all corporate level and unallocated items including any inter-segment eliminations necessary to reconcile to consolidated Company totals. This segment also includes the Company’s investment in FHLB stock of $4.1 million as of March 31, 2024 and $5.2 million as of December 31, 2023, and the Company’s senior unsecured notes of $1.6 billion at March 31, 2024 and December 31, 2023. (3) Includes $0.9 million of realized gains from sales of conduit mortgage loans collateralized by net leased properties in the Company’s real estate segment that eliminate in consolidation for the three months ended March 31, 2024. |
ORGANIZATION AND OPERATIONS (De
ORGANIZATION AND OPERATIONS (Details) | Mar. 31, 2024 |
LCFH | |
ORGANIZATION AND OPERATIONS | |
Ownership interest in LCFH | 100% |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Accounting Policies [Abstract] | ||
Realized gain/(loss) | $ 0.3 | |
Unrealized gain/(loss) | $ 0.1 |
MORTGAGE LOAN RECEIVABLES - Sch
MORTGAGE LOAN RECEIVABLES - Schedule of Mortgage Loans (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2024 USD ($) loans | Mar. 31, 2023 USD ($) | Dec. 31, 2023 USD ($) loans | Dec. 31, 2022 USD ($) | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Outstanding Face Amount | $ 2,835,269 | $ 3,195,576 | ||
Allowance for credit losses | (49,060) | $ (25,499) | (43,165) | $ (20,755) |
Carrying Value | $ 2,775,840 | $ 3,138,792 | ||
Weighted average yield | 9.38% | 9.61% | ||
Remaining maturity | 9 months 18 days | 8 months 12 days | ||
Number of non-accrual loans | loans | 2 | 1 | ||
Principal balance of loans on non-accrual status | $ 72,766 | $ 14,541 | ||
Deferred origination fees and other items | 6,000 | 9,100 | ||
First mortgage loans | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Outstanding Face Amount | 2,787,559 | 3,131,803 | ||
Carrying value gross, consumer and commercial real estate | $ 2,781,618 | 3,122,707 | ||
Weighted average yield | 9.41% | 9.63% | ||
Remaining maturity | 8 months 12 days | 8 months 12 days | ||
Mezzanine loans | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Outstanding Face Amount | $ 16,360 | 32,423 | ||
Carrying value gross, consumer and commercial real estate | $ 16,327 | 32,382 | ||
Weighted average yield | 11.21% | 11.46% | ||
Remaining maturity | 1 year 4 months 24 days | 10 months 24 days | ||
Total mortgage loans receivable | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Outstanding Face Amount | $ 2,803,919 | 3,164,226 | ||
Carrying value gross, consumer and commercial real estate | $ 2,797,945 | 3,155,089 | ||
Weighted average yield | 9.42% | 9.65% | ||
Remaining maturity | 8 months 12 days | 8 months 12 days | ||
Total mortgage loan receivables held for investment, net, at amortized cost | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Outstanding Face Amount | $ 2,803,919 | 3,164,226 | ||
Allowance for credit losses | (49,060) | $ (25,499) | (43,165) | $ (20,755) |
Carrying Value | $ 2,748,885 | $ 3,111,924 | ||
Remaining maturity | 1 year 8 months 12 days | 1 year 9 months 18 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 | $ 26,955 | $ 26,868 | ||
Weighted average yield | 4.57% | 4.57% | ||
Remaining maturity | 7 years 10 months 24 days | 8 years 2 months 12 days | ||
Mortgage loan receivables held for sale, First Mortgage Loans | US Treasury (UST) Interest Rate | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Cost or market adjustment of interest, percentage | 5.28% | 5.18% |
MORTGAGE LOAN RECEIVABLES - Add
MORTGAGE LOAN RECEIVABLES - Additional Information (Details) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2024 USD ($) property loans | Mar. 31, 2023 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Outstanding face amount | $ 2,835,269 | $ 3,195,576 | ||
Allowance for current expected credit losses | 49,700 | 43,900 | ||
General CECL Reserve | 49,060 | $ 25,499 | 43,165 | $ 20,755 |
Reserve of unfunded commitments | 600 | 700 | ||
Provision for (release of) loan loss reserves, net | 5,768 | 4,736 | ||
Increase (decrease) of reserve on unfunded commitments | (100) | (300) | ||
Asset Specific Reserve, Company Loan | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Provision for (release of) loan loss reserves, net | 5,900 | 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 | $ 2,500,000 | $ 2,800,000 | ||
Loans receivable with variable rates of interest | 87.60% | 87.80% | ||
Loans receivable with variable rates of interest, subject to interest rate floors | 100% | 100% | ||
Outstanding face amount | $ 2,803,919 | $ 3,164,226 | ||
General CECL Reserve | 49,060 | 25,499 | 43,165 | $ 20,755 |
Provision for (release of) loan loss reserves, net | 5,895 | $ 4,744 | ||
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 | $ 2,787,559 | $ 3,131,803 | ||
Number of loans modified | loans | 2 | |||
Amortized cost basis | $ 106,500 | |||
Loans modified, amount of mortgage loan receivable portfolio | 3.80% | |||
Weighted-average extension length | 2 years 3 months 18 days | |||
Principal paydown | $ 6,000 | |||
Reserve funding | $ 6,500 | |||
Common equity interest received | 15% | |||
Equity interest received, number of companies | property | 1 | |||
Accrued interest income | $ 800 |
MORTGAGE LOAN RECEIVABLES - Act
MORTGAGE LOAN RECEIVABLES - Activity in Loan Portfolio (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Mortgage loan receivables held for investment, net, at amortized cost: | ||
Net result from mortgage loan receivables held for sale | $ 87 | $ (194) |
Allowance for credit losses | ||
Beginning balance, Allowance for credit losses | (43,165) | (20,755) |
Release of provision for current expected credit loss, net | (5,768) | (4,736) |
Ending balance, Allowance for credit losses | (49,060) | (25,499) |
Repayments in transit of securities (other assets) | 27 | 0 |
Total mortgage loans receivable | ||
Mortgage loan receivables held for investment, net, at amortized cost: | ||
Mortgage loans receivable, ending balance | 2,797,945 | |
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 | 3,155,089 | 3,885,746 |
Origination of mortgage loan receivables | 48,702 | 32,616 |
Repayment of mortgage loan receivables | (395,345) | (131,272) |
Proceeds from sales of conduit mortgage loans | 0 | |
Non-cash disposition of loan via foreclosure | (14,541) | |
Net result from mortgage loan receivables held for sale | 0 | 0 |
Accretion/amortization of discount, premium and other fees | 4,040 | 6,985 |
Mortgage loans receivable, ending balance | 3,794,075 | |
Allowance for credit losses | ||
Beginning balance, Allowance for credit losses | (43,165) | (20,755) |
Release of provision for current expected credit loss, net | (5,895) | (4,744) |
Ending balance, Allowance for credit losses | (49,060) | (25,499) |
Repayments in transit of securities (other assets) | 32,500 | |
Proceeds from sales of mortgage loan receivables | 0 | |
Mortgage loan receivables held for sale | ||
Mortgage loan receivables held for investment, net, at amortized cost: | ||
Mortgage loans receivable, beginning balance | 26,868 | 27,391 |
Origination of mortgage loan receivables | 0 | 0 |
Repayment of mortgage loan receivables | 0 | 0 |
Proceeds from sales of conduit mortgage loans | 0 | |
Net result from mortgage loan receivables held for sale | 87 | (194) |
Accretion/amortization of discount, premium and other fees | 0 | 0 |
Mortgage loans receivable, ending balance | 26,955 | $ 27,197 |
Allowance for credit losses | ||
Proceeds from sales of mortgage loan receivables | 0 | |
Conduit Mortgage Loans | ||
Mortgage loan receivables held for investment, net, at amortized cost: | ||
Proceeds from sales of conduit mortgage loans | 40,400 | |
Allowance for credit losses | ||
Proceeds from sales of mortgage loan receivables | $ 40,400 |
MORTGAGE LOAN RECEIVABLES - Pro
MORTGAGE LOAN RECEIVABLES - Provision for Loan Losses (Details) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2024 USD ($) loans | Mar. 31, 2023 USD ($) | Mar. 31, 2022 USD ($) | Dec. 31, 2023 USD ($) | |
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Allowance for credit losses at beginning of period | $ 43,165 | $ 20,755 | ||
Provision for (release of) current expected credit loss, net | 5,895 | 4,744 | ||
Allowance for credit losses at end of period | 49,060 | 25,499 | ||
Amortized cost basis of loans on non-accrual status | 72,766 | $ 14,541 | ||
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 | 43,165 | 20,755 | ||
Allowance for credit losses at end of period | 49,060 | 25,499 | ||
Asset Specific Reserve, Company Loan | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Additional asset-specific reserve | 0 | $ 0 | $ 0 | |
Two loans | Total mortgage loan receivables held for investment, net, at amortized cost | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Amortized cost basis of loans on non-accrual status | $ 72,800 | |||
Number or loans in default | loans | 2 | |||
One loan | Total mortgage loan receivables held for investment, net, at amortized cost | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Amortized cost basis of loans on non-accrual status | $ 14,500 | |||
Number or loans in default | loans | 1 |
MORTGAGE LOAN RECEIVABLES - Ind
MORTGAGE LOAN RECEIVABLES - Individually Impaired Loans (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 USD ($) property | Mar. 31, 2024 USD ($) | Feb. 29, 2024 property | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Total loans | [1] | $ 3,155,089 | $ 2,797,945 | |
Subtotal loans, Year One | 14,461 | 37,620 | ||
Subtotal loans, Year Two | 919,738 | 14,505 | ||
Subtotal loans, Year Three | 1,784,006 | 723,415 | ||
Subtotal loans, Year Four | 0 | 1,644,613 | ||
Subtotal loans, Year 5 and Earlier | 436,884 | 377,792 | ||
Subtotal mortgage loans receivable | 3,155,089 | 2,797,945 | ||
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 | 0 | 0 | ||
Individually impaired loans | 0 | 0 | ||
Total loans, Year One | 14,461 | 37,620 | ||
Total loans, Year Two | 919,738 | 14,505 | ||
Total loans, Year Three | 1,784,006 | 723,415 | ||
Total loans, Year Four | 0 | 1,644,613 | ||
Total loans, Year Five and Earlier | 436,884 | 377,792 | ||
Accrued interest receivable | $ 22,400 | 21,300 | ||
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 | $ 14,461 | 37,620 | ||
Year Two | 547,532 | 14,505 | ||
Year Three | 612,489 | 389,862 | ||
Year Four | 0 | 525,115 | ||
Year Five and Earlier | 0 | 0 | ||
Total loans | 1,174,482 | 967,102 | ||
Office | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Year One | 0 | 0 | ||
Year Two | 79,148 | 0 | ||
Year Three | 614,743 | 79,254 | ||
Year Four | 0 | 604,862 | ||
Year Five and Earlier | 211,674 | 198,355 | ||
Total loans | 905,565 | 882,471 | ||
Mixed Use | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Year One | 0 | 0 | ||
Year Two | 193,470 | 0 | ||
Year Three | 321,514 | 176,976 | ||
Year Four | 0 | 287,198 | ||
Year Five and Earlier | 41,403 | 0 | ||
Total loans | 556,387 | 464,174 | ||
Industrial | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Year One | 0 | 0 | ||
Year Two | 22,636 | 0 | ||
Year Three | 34,746 | 250 | ||
Year Four | 0 | 34,796 | ||
Year Five and Earlier | 119,344 | 119,341 | ||
Total loans | 176,726 | 154,387 | ||
Manufactured Housing | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Year One | 0 | 0 | ||
Year Two | 32,655 | 0 | ||
Year Three | 82,895 | 12,948 | ||
Year Four | 0 | 79,085 | ||
Year Five and Earlier | 0 | 4,712 | ||
Total loans | 115,550 | 96,745 | ||
Retail | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Year One | 0 | 0 | ||
Year Two | 12,934 | 0 | ||
Year Three | 87,052 | 0 | ||
Year Four | 0 | 18,609 | ||
Year Five and Earlier | 9,083 | 55,384 | ||
Total loans | 109,069 | 73,993 | ||
Hospitality | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Year One | 0 | 0 | ||
Year Two | 0 | 0 | ||
Year Three | 18,589 | 32,695 | ||
Year Four | 0 | 82,955 | ||
Year Five and Earlier | 55,380 | 0 | ||
Total loans | 73,969 | 115,650 | ||
Other | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Year One | 0 | 0 | ||
Year Two | 31,363 | 0 | ||
Year Three | 11,978 | 31,430 | ||
Year Four | 0 | 11,993 | ||
Year Five and Earlier | 0 | 0 | ||
Total loans | 43,341 | $ 43,423 | ||
New York, NY | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Write-off | $ 2,700 | |||
Number of real estate properties | property | 1 | |||
New York, NY | Multifamily | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Number of real estate properties | property | 3 | |||
[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 | ||
Mar. 31, 2024 USD ($) security | Mar. 31, 2023 | Dec. 31, 2023 USD ($) security | |
Debt Securities, Available-for-sale [Line Items] | |||
Outstanding Face Amount | $ 1,374,470 | $ 1,407,340 | |
Amortized Cost Basis | 476,490 | 499,389 | |
Gross Unrealized Gains | 778 | 565 | |
Gross Unrealized Losses | (10,616) | (14,545) | |
Carrying value, before allowance for credit loss | $ 466,652 | $ 485,409 | |
# of Securities | security | 91 | 95 | |
Weighted Average Coupon | 2.65% | 2.55% | |
Weighted Average Yield | 6.84% | 6.82% | |
Remaining Duration (years) | 1 year 10 months 28 days | 1 year 11 months 23 days | |
Amortized Cost Basis | $ 160 | ||
Gross Unrealized Gains | 0 | ||
Gross Unrealized Losses | (29) | ||
Carrying Value | $ 131 | $ 144 | |
# of Securities | security | 1 | 1 | |
Allowance for current expected credit losses | $ (20) | $ (20) | |
Total Amortized Cost Basis | 476,650 | 499,549 | |
Total Gross Unrealized Gains | 778 | 565 | |
Total real estate securities, Gross Unrealized Losses | (10,665) | (14,581) | |
Carrying Value | $ 466,763 | $ 485,533 | |
Total number of Securities | security | 92 | 96 | |
CMBS | |||
Debt Securities, Available-for-sale [Line Items] | |||
Outstanding Face Amount | $ 470,399 | $ 439,679 | |
Amortized Cost Basis | 469,640 | 439,052 | |
Gross Unrealized Gains | 503 | 277 | |
Gross Unrealized Losses | (10,534) | (14,439) | |
Carrying value, before allowance for credit loss | $ 459,609 | $ 424,890 | |
# of Securities | security | 65 | 64 | |
Weighted Average Coupon | 6.68% | 6.67% | |
Weighted Average Yield | 6.85% | 6.83% | |
Remaining Duration (years) | 1 year 11 months 1 day | 2 years | |
Risk retention requirement, amount | $ 8,900 | $ 9,000 | |
CMBS interest-only | |||
Debt Securities, Available-for-sale [Line Items] | |||
Outstanding Face Amount | 866,295 | 876,555 | |
Amortized Cost Basis | 5,583 | 6,453 | |
Gross Unrealized Gains | 199 | 169 | |
Gross Unrealized Losses | (29) | (53) | |
Carrying value, before allowance for credit loss | $ 5,753 | $ 6,569 | |
# of Securities | security | 9 | 9 | |
Weighted Average Coupon | 0.56% | 0.57% | |
Weighted Average Yield | 6.94% | 6.61% | |
Remaining Duration (years) | 1 year 3 days | 1 year 25 days | |
Risk retention requirement, amount | $ 300 | $ 300 | |
GNMA interest-only | |||
Debt Securities, Available-for-sale [Line Items] | |||
Outstanding Face Amount | 36,699 | 37,053 | |
Amortized Cost Basis | 196 | 214 | |
Gross Unrealized Gains | 58 | 51 | |
Gross Unrealized Losses | (52) | (52) | |
Carrying value, before allowance for credit loss | $ 202 | $ 213 | |
# of Securities | security | 13 | 14 | |
Weighted Average Coupon | 0.36% | 0.36% | |
Weighted Average Yield | 6.08% | 6.12% | |
Remaining Duration (years) | 3 years 4 months 20 days | 3 years 7 months 6 days | |
Agency securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Outstanding Face Amount | $ 19 | $ 22 | |
Amortized Cost Basis | 20 | 22 | |
Gross Unrealized Gains | 0 | 0 | |
Gross Unrealized Losses | (1) | (1) | |
Carrying value, before allowance for credit loss | $ 19 | $ 21 | |
# of Securities | security | 1 | 1 | |
Weighted Average Coupon | 4% | 4% | |
Weighted Average Yield | 2.69% | 2.70% | |
Remaining Duration (years) | 11 months 4 days | 1 year 18 days | |
U.S. Treasury securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Outstanding Face Amount | $ 1,058 | $ 54,031 | |
Amortized Cost Basis | 1,051 | 53,648 | |
Gross Unrealized Gains | 18 | 68 | |
Gross Unrealized Losses | 0 | 0 | |
Carrying value, before allowance for credit loss | $ 1,069 | $ 53,716 | |
# of Securities | security | 3 | 7 | |
Weighted Average Yield | 5.25% | 5.41% | |
Remaining Duration (years) | 2 months 19 days | 25 days | |
Class A Common Stock | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost Basis | $ 160 | ||
Gross Unrealized Gains | 0 | ||
Gross Unrealized Losses | $ (16) |
SECURITIES - Securities by Rema
SECURITIES - Securities by Remaining Maturity (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Debt Securities, Available-for-sale [Line Items] | ||
Within 1 year | $ 76,684 | $ 137,266 |
1-5 years | 375,438 | 348,038 |
5-10 years | 14,530 | 105 |
Total | 466,652 | 485,409 |
Equity securities | 100 | 100 |
Allowance for current expected credit losses | (20) | (20) |
CMBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Within 1 year | 73,296 | 81,343 |
1-5 years | 371,882 | 343,547 |
5-10 years | 14,431 | 0 |
Total | 459,609 | 424,890 |
CMBS interest-only | ||
Debt Securities, Available-for-sale [Line Items] | ||
Within 1 year | 2,218 | 2,121 |
1-5 years | 3,535 | 4,448 |
5-10 years | 0 | 0 |
Total | 5,753 | 6,569 |
GNMA interest-only | ||
Debt Securities, Available-for-sale [Line Items] | ||
Within 1 year | 82 | 86 |
1-5 years | 21 | 22 |
5-10 years | 99 | 105 |
Total | 202 | 213 |
Agency securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Within 1 year | 19 | 0 |
1-5 years | 0 | 21 |
5-10 years | 0 | 0 |
Total | 19 | 21 |
U.S. Treasury securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Within 1 year | 1,069 | 53,716 |
1-5 years | 0 | 0 |
5-10 years | 0 | |
Total | $ 1,069 | $ 53,716 |
SECURITIES - Additional Informa
SECURITIES - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | ||
Sale of equity securities | $ 1 | $ 0.5 |
SECURITIES - Realized and Unrea
SECURITIES - Realized and Unrealized Gain (Loss) on Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | ||
Realized gain (loss) on securities | $ 53 | $ (307) |
Unrealized gain (loss) on securities | (7) | 117 |
Total realized and unrealized gain/(loss) on securities | $ 46 | $ (190) |
REAL ESTATE AND RELATED LEASE_3
REAL ESTATE AND RELATED LEASE INTANGIBLES, NET - Schedule of Real Estate Portfolio (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 | |
Real estate and related lease intangibles, net | |||
Less: Accumulated depreciation and amortization | $ (229,073) | $ (220,784) | |
Real estate and related lease intangibles, net | [1] | 733,635 | 726,442 |
Below market lease intangibles, net (other liabilities) | (28,330) | (28,860) | |
Unencumbered real estates | 172,400 | 160,800 | |
Accumulated amortization of below market lease | 16,300 | 15,800 | |
In-place leases and other intangibles | |||
Real estate and related lease intangibles, net | |||
Real estate | 117,006 | 116,831 | |
Undepreciated real estate and related lease intangibles | |||
Real estate and related lease intangibles, net | |||
Real estate | 962,708 | 947,226 | |
Land | |||
Real estate and related lease intangibles, net | |||
Real estate | 189,242 | 183,194 | |
Building | |||
Real estate and related lease intangibles, net | |||
Real estate | $ 656,460 | $ 647,201 | |
[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 Millions | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Real Estate [Abstract] | |||
Unbilled rent receivables | $ 2 | $ 1.1 | |
Tenant recoveries | $ (2) | $ (1.1) |
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, 2024 | Mar. 31, 2023 | |
Real Estate [Abstract] | ||
Depreciation expense | $ 6,389 | $ 6,200 |
Amortization expense | 1,913 | 1,329 |
Total real estate depreciation and amortization expense | 8,302 | 7,529 |
Depreciation on corporate fixed assets | $ 100 | $ 100 |
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, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Business Acquisition [Line Items] | |||
Gross intangible assets | $ 117,006 | $ 116,831 | |
Accumulated amortization | 57,792 | 55,782 | |
Net intangible assets | 59,214 | 61,049 | |
Unamortized favorable lease intangibles | 2,700 | $ 2,800 | |
Increase in operating lease income for amortization of below market lease intangibles acquired | 529 | $ 526 | |
Total | 432 | 454 | |
Above Market Leases | |||
Business Acquisition [Line Items] | |||
Reduction in operating lease income for amortization of above market lease intangibles acquired | $ (97) | $ (72) |
REAL ESTATE AND RELATED LEASE_7
REAL ESTATE AND RELATED LEASE INTANGIBLES, NET - Expected Future Amortization Expense (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Finite-Lived Intangible Assets [Line Items] | ||
Net intangible assets | $ 59,214 | $ 61,049 |
Increase/(Decrease) to Operating Lease Income | ||
Finite-Lived Intangible Assets [Line Items] | ||
2024 (last nine months) | 1,289 | |
2025 | 1,721 | |
2026 | 1,735 | |
2027 | 1,699 | |
2028 | 1,625 | |
Thereafter | 17,532 | |
Net intangible assets | 25,601 | |
Amortization Expense | ||
Finite-Lived Intangible Assets [Line Items] | ||
2024 (last nine months) | 4,987 | |
2025 | 5,178 | |
2026 | 4,519 | |
2027 | 4,332 | |
2028 | 4,167 | |
Thereafter | 33,304 | |
Net intangible assets | $ 56,487 |
REAL ESTATE AND RELATED LEASE_8
REAL ESTATE AND RELATED LEASE INTANGIBLES, NET - Future Minimum Rental Payments Receivable (Details) $ in Thousands | Mar. 31, 2024 USD ($) |
Real Estate [Abstract] | |
2024 (last nine months) | $ 49,731 |
2025 | 60,708 |
2026 | 53,016 |
2027 | 47,820 |
2028 | 45,271 |
Thereafter | 160,837 |
Total | $ 417,383 |
REAL ESTATE AND RELATED LEASE_9
REAL ESTATE AND RELATED LEASE INTANGIBLES, NET - Schedule of Real Estate Properties Acquired (Details) | 1 Months Ended | 3 Months Ended | |
Feb. 29, 2024 USD ($) property | Mar. 31, 2024 USD ($) | Dec. 31, 2023 property | |
Business Acquisition [Line Items] | |||
Total real estate acquisitions | $ 14,110,000 | ||
New York, NY | |||
Business Acquisition [Line Items] | |||
Number of properties acquired | property | 1 | ||
New York, NY | Multifamily | |||
Business Acquisition [Line Items] | |||
Purchase Price/Fair Value on the Date of Foreclosure | $ 14,110,000 | ||
Ownership Interest | 100% | ||
Number of properties acquired | property | 3 | ||
Terminal capitalization rate | 5.50% | ||
New York, NY | Multifamily | Real Estate Acquired in Satisfaction of Debt | |||
Business Acquisition [Line Items] | |||
Realized (gain) loss on disposition of loan | $ 0 |
DEBT OBLIGATIONS, NET - Schedul
DEBT OBLIGATIONS, NET - Schedule of Company's Debt Obligations (Details) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 USD ($) extensionOfMaturityPeriod | Dec. 31, 2023 USD ($) extensionOfMaturityPeriod | |
Assets Sold under Agreements to Repurchase [Line Items] | ||
Carrying Value of Debt Obligations | $ 488,880 | $ 606,607 |
Total | 2,620,328 | |
Carrying Amount of Collateral | 0 | 0 |
Committed Loan Repurchase Facility | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Committed / Principal Amount | 1,241,997 | 1,241,997 |
Carrying Value of Debt Obligations | 487,216 | 604,999 |
Committed but Unfunded | 754,781 | 636,998 |
Carrying Amount of Collateral | 613,123 | 732,795 |
Fair Value of Collateral | 613,304 | 733,074 |
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 | 232,114 | 235,594 |
Committed but Unfunded | 267,886 | 264,406 |
Carrying Amount of Collateral | 339,160 | 342,467 |
Fair Value of Collateral | $ 339,160 | $ 342,467 |
Number of extension maturity periods | extensionOfMaturityPeriod | 2 | 2 |
Length of extension options | 12 months | 12 months |
Committed Loan Repurchase Facility | Maturing on 19 December 2024 | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Committed / Principal Amount | $ 300,000 | $ 300,000 |
Carrying Value of Debt Obligations | 80,743 | 118,903 |
Committed but Unfunded | 219,257 | 181,097 |
Carrying Amount of Collateral | 111,560 | 174,938 |
Fair Value of Collateral | $ 111,560 | $ 174,938 |
Number of extension maturity periods | extensionOfMaturityPeriod | 1 | 1 |
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 | $ 141,997 | $ 141,997 |
Carrying Value of Debt Obligations | 102,956 | 139,162 |
Committed but Unfunded | 39,041 | 2,835 |
Carrying Amount of Collateral | 65,210 | 65,110 |
Fair Value of Collateral | $ 65,210 | $ 65,110 |
Number of extension maturity periods | extensionOfMaturityPeriod | 3 | 3 |
Length of extension options | 12 months | 12 months |
Collateral for debt instrument | $ 69,400 | $ 114,700 |
Committed Loan Repurchase Facility | Maturing On 3 October 2025 | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Committed / Principal Amount | 200,000 | 200,000 |
Carrying Value of Debt Obligations | 71,403 | 111,340 |
Committed but Unfunded | 128,597 | 88,660 |
Carrying Amount of Collateral | 97,193 | 150,280 |
Fair Value of Collateral | $ 97,374 | $ 150,559 |
Number of extension maturity periods | extensionOfMaturityPeriod | 2 | 2 |
Length of extension options | 12 months | 12 months |
Period prior to initial maturity when no no new advances are permitted | 30 days | 30 days |
Committed Loan Repurchase Facility | Maturing On 22 January 2025 | ||
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 22 January 2024 | ||
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 | 2 | |
Length of extension options | 12 months | |
Committed Securities Repurchase Facility | Maturing On 27 May 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 |
Uncommitted Securities Repurchase Facility | Maturing On 16 April 2024 | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Carrying Value of Debt Obligations | 1,665 | |
Carrying Amount of Collateral | 2,509 | |
Fair Value of Collateral | 2,509 | |
Restricted securities held-to-maturity | 1,900 | |
Uncommitted Securities Repurchase Facility | Maturing On 17 January 2024 | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Carrying Value of Debt Obligations | 1,608 | |
Carrying Amount of Collateral | 2,511 | |
Fair Value of Collateral | 2,511 | |
Restricted securities held-to-maturity | 1,900 | |
Total Repurchase Facilities | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Committed / Principal Amount | 1,341,997 | 1,341,997 |
Carrying Value of Debt Obligations | 488,881 | 606,607 |
Committed but Unfunded | 854,781 | 736,998 |
Carrying Amount of Collateral | 615,632 | 735,306 |
Fair Value of Collateral | 615,813 | 735,585 |
Revolving Credit Facility | Maturing On 25 January 2025 | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Committed / Principal Amount | 323,850 | |
Carrying Value of Debt Obligations | 0 | |
Committed but Unfunded | $ 323,850 | |
Number of extension maturity periods | extensionOfMaturityPeriod | 4 | |
Length of extension options | 12 months | |
Revolving Credit Facility | Maturing On 27 July 2024 | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Committed / Principal Amount | 323,850 | |
Carrying Value of Debt Obligations | 0 | |
Committed but Unfunded | $ 323,850 | |
Number of extension maturity periods | extensionOfMaturityPeriod | 3 | |
Length of extension options | 12 months | |
Mortgage Loan Financing | Various Date | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Committed / Principal Amount | $ 477,719 | $ 437,384 |
Carrying Value of Debt Obligations | 478,797 | 437,759 |
Committed but Unfunded | 0 | 0 |
Carrying Amount of Collateral | 505,023 | 474,740 |
Fair Value of Collateral | 683,438 | 625,454 |
CLO Debt | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Committed / Principal Amount | 1,000,000 | |
Unamortized debt issuance costs | 1,200 | |
CLO Debt | Various Date | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Committed / Principal Amount | 1,047,893 | 1,062,777 |
Carrying Value of Debt Obligations | 1,046,700 | 1,060,719 |
Committed but Unfunded | 0 | 0 |
Carrying Amount of Collateral | 1,294,873 | 1,327,722 |
Fair Value of Collateral | 1,294,873 | 1,327,722 |
Unamortized debt issuance costs | 1,200 | 2,100 |
Borrowings from the FHLB | Various Date | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Committed / Principal Amount | 90,000 | 115,000 |
Carrying Value of Debt Obligations | 90,000 | 115,000 |
Committed but Unfunded | 0 | 0 |
Carrying Amount of Collateral | 109,870 | 140,276 |
Fair Value of Collateral | 109,870 | 140,276 |
Senior Unsecured Notes | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Unamortized debt issuance costs | 10,963 | |
Senior Unsecured Notes | Various Date | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Debt issued | 1,573,614 | 1,575,614 |
Senior Unsecured Notes | 1,562,651 | 1,563,861 |
Committed but Unfunded | 0 | 0 |
Unamortized debt issuance costs | 11,000 | 11,800 |
Total Debt Obligations, Net | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Debt issued | 4,855,073 | 4,856,622 |
Total | 3,667,029 | 3,783,946 |
Committed but Unfunded | 1,178,631 | 1,060,848 |
Carrying Amount of Collateral | 2,525,398 | 2,678,044 |
Fair Value of Collateral | $ 2,703,994 | $ 2,829,037 |
Minimum | Committed Loan Repurchase Facility | Maturing on 27 September 2025 | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Interest rate | 7.07% | 7.08% |
Minimum | Committed Loan Repurchase Facility | Maturing on 19 December 2024 | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Interest rate | 7.42% | 7.46% |
Minimum | Committed Loan Repurchase Facility | Maturing on April 30 2024 | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Interest rate | 7.02% | 7.06% |
Minimum | Committed Loan Repurchase Facility | Maturing On 3 October 2025 | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Interest rate | 7.72% | 7.22% |
Minimum | Committed Loan Repurchase Facility | Maturing On 22 January 2025 | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Interest rate | 0% | |
Minimum | Committed Loan Repurchase Facility | Maturing On 22 January 2024 | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Interest rate | 0% | |
Minimum | Committed Securities Repurchase Facility | Maturing On 27 May 2024 | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Interest rate | 0% | 0% |
Minimum | Uncommitted Securities Repurchase Facility | Maturing On 16 April 2024 | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Interest rate | 6.52% | |
Minimum | Uncommitted Securities Repurchase Facility | Maturing On 17 January 2024 | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Interest rate | 6.61% | |
Minimum | Revolving Credit Facility | Maturing On 25 January 2025 | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Interest rate | 0% | |
Minimum | Revolving Credit Facility | Maturing On 27 July 2024 | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Interest rate | 0% | |
Minimum | Mortgage Loan Financing | Various Date | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Interest rate | 4.39% | 4.39% |
Minimum | CLO Debt | Various Date | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Interest rate | 6.64% | 6.68% |
Minimum | Borrowings from the FHLB | Various Date | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Interest rate | 5.70% | 5.76% |
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 | 7.47% | 7.48% |
Maximum | Committed Loan Repurchase Facility | Maturing on 19 December 2024 | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Interest rate | 8.32% | 8.36% |
Maximum | Committed Loan Repurchase Facility | Maturing on April 30 2024 | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Interest rate | 7.57% | 7.60% |
Maximum | Committed Loan Repurchase Facility | Maturing On 3 October 2025 | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Interest rate | 8.27% | 8.29% |
Maximum | Committed Loan Repurchase Facility | Maturing On 22 January 2025 | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Interest rate | 0% | |
Maximum | Committed Loan Repurchase Facility | Maturing On 22 January 2024 | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Interest rate | 0% | |
Maximum | Committed Securities Repurchase Facility | Maturing On 27 May 2024 | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Interest rate | 0% | 0% |
Maximum | Uncommitted Securities Repurchase Facility | Maturing On 16 April 2024 | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Interest rate | 7.47% | |
Maximum | Uncommitted Securities Repurchase Facility | Maturing On 17 January 2024 | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Interest rate | 7.56% | |
Maximum | Revolving Credit Facility | Maturing On 25 January 2025 | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Interest rate | 0% | |
Maximum | Revolving Credit Facility | Maturing On 27 July 2024 | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Interest rate | 0% | |
Maximum | Mortgage Loan Financing | Various Date | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Interest rate | 9.03% | 9.03% |
Maximum | CLO Debt | Various Date | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Interest rate | 9.09% | 9.13% |
Maximum | Borrowings from the FHLB | Various Date | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Interest rate | 5.82% | 5.88% |
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, 2024 USD ($) security agreement | Dec. 31, 2023 USD ($) | |
Debt Instrument [Line Items] | ||
Obligations outstanding | $ | $ 488,880 | $ 606,607 |
Number of counterparties with repurchase agreements | security | 4 | |
Number of counterparties with collateral exceeding borrowed amounts | security | 0 | |
Amount of collateral exceeding borrowings | $ | $ 152,400 | |
Amount of collateral exceeding borrowings, as a percentage | 10% | |
Weighted average haircut | 21% | |
Committed Loan Repurchase Facility | ||
Debt Instrument [Line Items] | ||
Number of agreements | agreement | 5 | |
Consolidated CLO debt obligations | $ | $ 1,241,997 | $ 1,241,997 |
Committed Securities Repurchase Facility | Maturing on 23 December 2021 | ||
Debt Instrument [Line Items] | ||
Consolidated CLO debt obligations | $ | $ 100,000 | |
Loan Repurchase Facilities | ||
Debt Instrument [Line Items] | ||
Number of facilities due after 90 days | security | 4 | |
Number of facilities due within 30 days | security | 1 | |
Length of extension | 2 years | |
Loan Repurchase Facilities | Minimum | ||
Debt Instrument [Line Items] | ||
Specified period facilities are due, within 30 days | 30 days | |
Loan Repurchase Facilities | Maximum | ||
Debt Instrument [Line Items] | ||
Specified period facilities are due, greater than 90 days | 90 days | |
Uncommitted Securities Repurchase Facilities | Minimum | ||
Debt Instrument [Line Items] | ||
Specified period facilities are due | 30 days | |
Uncommitted Securities Repurchase Facilities | Maximum | ||
Debt Instrument [Line Items] | ||
Specified period facilities are due | 90 days |
DEBT OBLIGATIONS, NET - Revolvi
DEBT OBLIGATIONS, NET - Revolving Credit Facility (Details) - USD ($) | Mar. 31, 2024 | Dec. 31, 2023 |
Debt Instrument [Line Items] | ||
Carrying Value of Debt Obligations | $ 488,880,000 | $ 606,607,000 |
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% | |
Carrying Value of Debt Obligations | $ 0 | |
Letter of Credit | ||
Debt Instrument [Line Items] | ||
Committed amount on credit agreement | $ 25,000,000 |
DEBT OBLIGATIONS, NET - Debt Is
DEBT OBLIGATIONS, NET - Debt Issuance Costs (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Credit Agreement and Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Unamortized debt issuance expense | $ 4 | $ 4 |
DEBT OBLIGATIONS, NET - Uncommi
DEBT OBLIGATIONS, NET - Uncommitted Securities Repurchase Facilities (Details) - Uncommitted Securities Repurchase Facilities | 3 Months Ended |
Mar. 31, 2024 | |
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, 2024 USD ($) security | Mar. 31, 2023 USD ($) security | Dec. 31, 2023 USD ($) | |
Debt Instrument [Line Items] | |||
Amortization of discount (premium) on mortgage loan financing included in interest expense | $ (151) | $ (150) | |
Mortgage loan financing | |||
Debt Instrument [Line Items] | |||
Carrying amount | 478,800 | $ 437,800 | |
Net unamortized premiums | 2,500 | 1,800 | |
Amortization of discount (premium) on mortgage loan financing included in interest expense | $ (200) | $ (200) | |
Weighted average term | 3 years 7 months 6 days | ||
Pledged assets, real estate and lease intangibles, net | $ 505,000 | $ 474,700 | |
Number of agreements | security | 5 | 0 | |
Outstanding debt balance | $ 40,100 | ||
Mortgage loan financing | Minimum | |||
Debt Instrument [Line Items] | |||
Stated interest rate on debt instrument | 4.39% | ||
Mortgage loan financing | Maximum | |||
Debt Instrument [Line Items] | |||
Stated interest rate on debt instrument | 9.03% |
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, 2024 USD ($) | Dec. 31, 2023 USD ($) | |
Debt Instrument [Line Items] | |||||
Debt obligations, net | [1] | $ 3,667,029 | $ 3,783,946 | ||
Variable Interest Entity, Primary Beneficiary | |||||
Debt Instrument [Line Items] | |||||
Debt obligations, net | 1,046,700 | 1,060,719 | |||
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% | ||||
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% | |||
CLO Debt | |||||
Debt Instrument [Line Items] | |||||
Unamortized debt issuance costs | 1,200 | ||||
Various Date | CLO Debt | |||||
Debt Instrument [Line Items] | |||||
Debt obligations, net | 1,000,000 | ||||
Unamortized debt issuance costs | $ 1,200 | $ 2,100 | |||
[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, 2024 USD ($) | |
Debt Instrument [Line Items] | |
Amount restricted from transfer | $ 843.9 |
Borrowings from the FHLB | |
Debt Instrument [Line Items] | |
FHLB borrowings outstanding | $ 90 |
Weighted average term | 4 months 20 days |
Weighted average interest rate | 5.74% |
Borrowings from the FHLB | Commercial Mortgage Backed Securities, US Agency Securities and U.S. Treasury Securities | |
Debt Instrument [Line Items] | |
Collateral for debt instrument | $ 109.9 |
Borrowings from the FHLB | Minimum | |
Debt Instrument [Line Items] | |
Average term | 1 month 2 days |
Stated interest rate on debt instrument | 5.70% |
Advance rates | 71.70% |
Borrowings from the FHLB | Maximum | |
Debt Instrument [Line Items] | |
Average term | 6 months |
Stated interest rate on debt instrument | 5.82% |
Advance rates | 95.70% |
DEBT OBLIGATIONS, NET - Senior
DEBT OBLIGATIONS, NET - Senior Unsecured Notes (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Debt Instrument [Line Items] | ||
Gain on extinguishment of debt | $ 177,000 | $ 9,217,000 |
Ladder Capital Finance Corporation | LCFH | ||
Debt Instrument [Line Items] | ||
Ownership interest in LCFH | 100% | |
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% | |
Senior Notes Due 2027 | Senior Unsecured Notes | ||
Debt Instrument [Line Items] | ||
Loan refinance | $ 611,900,000 | |
Stated interest rate on debt instrument | 4.25% | |
Senior Notes Due 2029 | Senior Unsecured Notes | ||
Debt Instrument [Line Items] | ||
Loan refinance | $ 633,900,000 | |
Stated interest rate on debt instrument | 4.75% | |
Notes repurchased | $ 2,000,000 | |
Gain on extinguishment of debt | $ 200,000 |
DEBT OBLIGATIONS, NET - Financi
DEBT OBLIGATIONS, NET - Financial Covenants (Details) $ in Millions | Mar. 31, 2024 USD ($) |
Debt Disclosure [Abstract] | |
Equity restricted as payment as a dividend | $ 871.4 |
DEBT OBLIGATIONS, NET - Sched_2
DEBT OBLIGATIONS, NET - Schedule of Maturities (Details) $ in Thousands | Mar. 31, 2024 USD ($) |
Long-term Debt, Fiscal Year Maturity [Abstract] | |
2024 (last nine months) | $ 292,412 |
2025 | 581,685 |
2026 | 138,170 |
2027 | 873,755 |
2028 | 24,317 |
Thereafter | 719,874 |
Subtotal | 2,630,213 |
Premiums included in mortgage loan financing | 2,522 |
Total | 2,620,328 |
Senior Unsecured Notes | |
Long-term Debt, Fiscal Year Maturity [Abstract] | |
Unamortized debt issuance costs | (10,963) |
Mortgage loan financings | |
Long-term Debt, Fiscal Year Maturity [Abstract] | |
Unamortized debt issuance costs | (1,444) |
CLO Debt | |
Long-term Debt, Fiscal Year Maturity [Abstract] | |
Unamortized debt issuance costs | (1,200) |
Consolidated CLO debt obligations | $ 1,000,000 |
DERIVATIVE INSTRUMENTS - Schedu
DERIVATIVE INSTRUMENTS - Schedule of Derivatives Outstanding (Details) $ in Thousands | Mar. 31, 2024 USD ($) | Dec. 31, 2023 USD ($) option |
Derivative [Line Items] | ||
Notional | $ 116,700 | $ 194,900 |
Fair value, asset | 674 | 1,454 |
Fair value, liability | 0 | 0 |
1 Month Term SOFR | ||
Derivative [Line Items] | ||
Notional | 90,000 | 90,000 |
Fair value, asset | 660 | 908 |
Fair value, liability | $ 0 | $ 0 |
Remaining Maturity (years) | 4 months 17 days | 7 months 13 days |
5-year Treasury-Note Futures | ||
Derivative [Line Items] | ||
Notional | $ 500 | $ 18,800 |
Fair value, asset | 0 | 98 |
Fair value, liability | $ 0 | $ 0 |
Remaining Maturity (years) | 3 months | 3 months |
10-year Treasury-Note Futures | ||
Derivative [Line Items] | ||
Notional | $ 26,200 | $ 86,100 |
Fair value, asset | 14 | 447 |
Fair value, liability | $ 0 | $ 0 |
Remaining Maturity (years) | 3 months | 3 months |
Futures | ||
Derivative [Line Items] | ||
Notional | $ 26,700 | $ 104,900 |
Fair value, asset | 14 | 545 |
Fair value, liability | $ 0 | 0 |
Options | ||
Derivative [Line Items] | ||
Fair value, asset | 1 | |
Fair value, liability | $ 0 | |
Remaining Maturity (years) | 18 days | |
Option contracts held | option | 104 |
DERIVATIVE INSTRUMENTS - Sche_2
DERIVATIVE INSTRUMENTS - Schedule of Realized Gains (Losses) on Derivatives (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Derivative [Line Items] | ||
Unrealized Gain/(Loss) | $ (780) | $ (374) |
Realized Gain/(Loss) | 4,799 | (1,868) |
Net Result from Derivative Transactions | 4,019 | (2,242) |
Caps | ||
Derivative [Line Items] | ||
Unrealized Gain/(Loss) | (248) | (334) |
Realized Gain/(Loss) | 418 | 237 |
Net Result from Derivative Transactions | 170 | (97) |
Futures | ||
Derivative [Line Items] | ||
Unrealized Gain/(Loss) | (532) | (171) |
Realized Gain/(Loss) | 4,382 | (1,861) |
Net Result from Derivative Transactions | 3,850 | (2,032) |
Options | ||
Derivative [Line Items] | ||
Unrealized Gain/(Loss) | 0 | 131 |
Realized Gain/(Loss) | (1) | (244) |
Net Result from Derivative Transactions | $ (1) | $ (113) |
DERIVATIVE INSTRUMENTS - Additi
DERIVATIVE INSTRUMENTS - Additional Information (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Mar. 31, 2023 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Cash margins held as collateral for derivatives by counterparties | $ 0.7 | $ 2.8 |
OFFSETTING ASSETS AND LIABILI_3
OFFSETTING ASSETS AND LIABILITIES - Offsetting Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 | |
Offsetting of derivative assets | |||
Gross amounts of recognized assets | $ 674 | $ 1,454 | |
Gross amounts offset in the balance sheet | 0 | 0 | |
Derivative instruments | [1] | 674 | 1,454 |
Derivative instruments | 674 | 1,454 | |
Gross amounts not offset in the balance sheet | |||
Financial instruments | 0 | 0 | |
Cash collateral received/(posted) | (741) | (2,846) | |
Net amount | $ (67) | $ (1,392) | |
[1] Includes amounts relating to consolidated variable interest entities. Refer to Note 2 and Note 9. |
OFFSETTING ASSETS AND LIABILI_4
OFFSETTING ASSETS AND LIABILITIES - Offsetting Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Repurchase agreements | ||
Gross amounts of recognized liabilities | $ 488,880 | $ 606,607 |
Gross amounts offset in the balance sheet | 0 | 0 |
Net amounts of liabilities presented in the balance sheet | 488,880 | 606,607 |
Gross amounts not offset in the balance sheet | ||
Financial instruments collateral | 488,880 | 606,607 |
Cash collateral posted/(received) | 0 | 0 |
Net amount | 488,880 | 606,607 |
Total | ||
Gross amounts of recognized liabilities | 488,880 | 606,607 |
Gross amounts offset in the balance sheet | 0 | 0 |
Net amounts of liabilities presented in the balance sheet | 488,880 | 606,607 |
Gross amounts not offset in the balance sheet | ||
Financial instruments collateral | 488,880 | 606,607 |
Cash collateral posted/(received) | 0 | 0 |
Net amount | $ 488,880 | $ 606,607 |
CONSOLIDATED VARIABLE INTERES_3
CONSOLIDATED VARIABLE INTEREST ENTITIES (Details) $ in Thousands | Mar. 31, 2024 USD ($) security | Dec. 31, 2023 USD ($) security | Mar. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | |||
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] | |||||||
Accrued interest receivable | [1] | $ 23,207 | $ 24,233 | ||||
Other assets | [1] | 83,326 | 98,218 | ||||
Total assets | 5,322,798 | [1] | 5,512,677 | [1] | $ 5,512,677 | ||
Debt obligations, net | [1] | 3,667,029 | 3,783,946 | ||||
Accrued expenses | [1] | 45,603 | 65,144 | ||||
Total liabilities | [1] | 3,798,913 | 3,980,479 | ||||
Total equity | 1,523,885 | [1] | 1,532,198 | [1] | $ 1,528,554 | $ 1,533,561 | |
Total liabilities and equity | [1] | 5,322,798 | 5,512,677 | ||||
Variable Interest Entity, Primary Beneficiary | |||||||
Variable Interest Entity [Line Items] | |||||||
Mortgage loan receivables held for investment, net, at amortized cost | 1,294,873 | 1,327,722 | |||||
Accrued interest receivable | 9,980 | 9,394 | |||||
Other assets | 23,864 | 4,469 | |||||
Total assets | 1,328,717 | 1,341,585 | |||||
Debt obligations, net | 1,046,700 | 1,060,719 | |||||
Accrued expenses | 3,489 | 3,555 | |||||
Total liabilities | 1,050,189 | 1,064,274 | |||||
Net equity in VIEs (eliminated in consolidation) | 278,528 | 277,311 | |||||
Total equity | 278,528 | 277,311 | |||||
Total liabilities and equity | $ 1,328,717 | $ 1,341,585 | |||||
[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) - USD ($) $ / shares in Units, $ in Thousands | Apr. 24, 2024 | Apr. 23, 2024 | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Jul. 27, 2022 |
Subsequent Event | |||||||
Class of Stock [Line Items] | |||||||
Additional authorizations | $ 75,000 | ||||||
Remaining amount available for repurchase | $ 75,000 | $ 43,600 | |||||
2014 Share Repurchase Authorization Program | |||||||
Class of Stock [Line Items] | |||||||
Remaining amount available for repurchase | $ 43,600 | ||||||
Percentage of aggregate common stock outstanding under Repurchase Program | 3.10% | ||||||
Closing price (in dollars per share) | $ 11.13 | ||||||
Class A Common Stock | 2014 Share Repurchase Authorization Program | |||||||
Class of Stock [Line Items] | |||||||
Additional authorizations | $ 50,000 | ||||||
Remaining amount available for repurchase | $ 43,609 | $ 44,256 | $ 44,452 | $ 46,737 |
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, 2024 | Mar. 31, 2023 | Jul. 27, 2022 | |
Treasury Stock [Roll Forward] | |||
Repurchases paid: | $ (647) | $ (2,285) | |
2014 Share Repurchase Authorization Program | |||
Treasury Stock [Roll Forward] | |||
Remaining amount available for repurchase, end of period | $ 43,600 | ||
2014 Share Repurchase Authorization Program | Class A Common Stock | |||
Class of Stock [Line Items] | |||
Purchase of treasury stock (in shares) | 60,000 | 250,000 | |
Treasury Stock [Roll Forward] | |||
Remaining amount available for repurchase, beginning of period | $ 44,256 | $ 46,737 | |
Repurchases paid: | (647) | (2,285) | |
Remaining amount available for repurchase, end of period | $ 43,609 | $ 44,452 | |
Additional authorizations | $ 50,000 |
EQUITY STRUCTURE AND ACCOUNTS_3
EQUITY STRUCTURE AND ACCOUNTS - Dividends Declared (Details) - $ / shares | 3 Months Ended | |||
Mar. 15, 2024 | Mar. 15, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Class A Common Stock | ||||
Class of Stock [Line Items] | ||||
Dividends per share of Class A common stock (in dollars per share) | $ 0.23 | $ 0.23 | $ 0.23 | $ 0.23 |
EQUITY STRUCTURE AND ACCOUNTS_4
EQUITY STRUCTURE AND ACCOUNTS - Changes in Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | ||
AOCI Attributable to Parent [Roll Forward] | |||
Beginning Balance | $ 1,532,198 | [1] | $ 1,533,561 |
Gain (loss) on available for sale securities, net of tax | 4,033 | 3,485 | |
Ending Balance | 1,523,885 | [1] | 1,528,554 |
Accumulated Other Comprehensive Income (Loss) | |||
AOCI Attributable to Parent [Roll Forward] | |||
Beginning Balance | (13,853) | (21,009) | |
Gain (loss) on available for sale securities, net of tax | 4,033 | 3,485 | |
Ending Balance | $ (9,820) | $ (17,524) | |
[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, 2024 USD ($) jointVenture property |
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 | $ 78.4 |
Oakland County, MI | Office Building | |
Noncontrolling Interest [Line Items] | |
Property book value | $ 8.8 |
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, 2024 | Mar. 31, 2023 | |
Weighted average shares outstanding: | ||
Basic (in shares) | 125,315,765 | 124,493,132 |
Diluted (in shares) | 125,520,373 | 124,656,102 |
Class A Common Stock | ||
Earnings Per Share | ||
Basic Net income (loss) available for Class A common shareholders | $ 16,609 | $ 22,408 |
Diluted Net income (loss) available for Class A common shareholders | $ 16,609 | $ 22,408 |
Weighted average shares outstanding: | ||
Basic (in shares) | 125,315,765 | 124,493,132 |
Diluted (in shares) | 125,520,373 | 124,656,102 |
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, 2024 | Mar. 31, 2023 | |
Denominator: | ||
Weighted average number of shares of Class A common stock outstanding (in shares) | 125,315,765 | 124,493,132 |
Basic net income (loss) per share of Class A common stock (in dollars per share) | $ 0.13 | $ 0.18 |
Denominator: | ||
Basic, weighted average number of shares of Class A common stock outstanding (in shares) | 125,315,765 | 124,493,132 |
Diluted weighted average number of shares of Class A common stock outstanding (in shares) | 125,520,373 | 124,656,102 |
Diluted net income (loss) per share of Class A common stock (in dollars per share) | $ 0.13 | $ 0.18 |
Anti-dilutive shares (in shares) | 378,668 | 390,313 |
Class A Common Stock | ||
Numerator: | ||
Net income (loss) attributable to Class A common shareholders | $ 16,609 | $ 22,408 |
Denominator: | ||
Weighted average number of shares of Class A common stock outstanding (in shares) | 125,315,765 | 124,493,132 |
Basic net income (loss) per share of Class A common stock (in dollars per share) | $ 0.13 | $ 0.18 |
Numerator: | ||
Net income (loss) attributable to Class A common shareholders | $ 16,609 | $ 22,408 |
Diluted net income (loss) attributable to Class A common shareholders | $ 16,609 | $ 22,408 |
Denominator: | ||
Basic, weighted average number of shares of Class A common stock outstanding (in shares) | 125,315,765 | 124,493,132 |
Diluted weighted average number of shares of Class A common stock outstanding (in shares) | 125,520,373 | 124,656,102 |
Diluted net income (loss) per share of Class A common stock (in dollars per share) | $ 0.13 | $ 0.18 |
Class A Common Stock | Restricted Stock | ||
Denominator: | ||
Incremental shares of unvested Class A restricted stock (in shares) | 204,608 | 162,970 |
STOCK-BASED AND OTHER COMPENS_3
STOCK-BASED AND OTHER COMPENSATION PLANS - Schedule of Stock Based Compensation Plans (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | ||
Stock-based compensation expense | $ 10,298 | $ 9,124 |
Total Stock-Based Compensation Expense | $ 10,298 | $ 9,124 |
STOCK-BASED AND OTHER COMPENS_4
STOCK-BASED AND OTHER COMPENSATION PLANS - Schedule of Grants (Details) - Restricted Stock - $ / shares | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares (in shares) | 1,855,541 | |
Class A Common Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares (in shares) | 1,855,541 | 1,417,561 |
Weighted average fair value per share (in dollars per share) | $ 10.70 | $ 11.58 |
STOCK-BASED AND OTHER COMPENS_5
STOCK-BASED AND OTHER COMPENSATION PLANS - Schedule of Nonvested Shares Outstanding (Details) $ / shares in Units, $ in Millions | 3 Months Ended |
Mar. 31, 2024 USD ($) $ / shares shares | |
Weighted Average Grant Date Fair Value | |
Nonvested/Outstanding weighted average grant date fair value, beginning balance (in dollars pre share) | $ / shares | $ 12.37 |
Granted, weighted average grant date fair value (in dollars per share) | $ / shares | 10.70 |
Vested, weighted average grant date fair value (in dollars per share) | $ / shares | 10.91 |
Forfeited, weighted average grant date fair value (in dollars per share) | $ / shares | 10.87 |
Nonvested/Outstanding weighted average grant date fair value, ending balance (in dollars per share) | $ / shares | 12.22 |
Stock Options | |
Weighted-average exercise price of outstanding options, warrants and rights | $ / shares | $ 12.22 |
Unrecognized compensation cost | $ | $ 19 |
Period of recognition for unrecognized compensation costs | 35 months 3 days |
Remaining vesting period | 27 months 15 days |
Restricted Stock | |
Restricted Stock | |
Nonvested/Outstanding (in shares) | 2,197,963 |
Granted (in shares) | 1,855,541 |
Vested (in shares) | (1,893,138) |
Forfeited (in shares) | (7,382) |
Nonvested/Outstanding (in shares) | 2,152,984 |
Stock Options | |
Stock Options | |
Nonvested/Outstanding (in shares) | 623,788 |
Granted (in shares) | 0 |
Vested (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, 2024 USD ($) shares | Feb. 18, 2023 USD ($) shares | Feb. 29, 2024 installment | Feb. 28, 2023 installment | Mar. 31, 2024 shares | Mar. 31, 2023 shares | Jun. 06, 2023 shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Aggregate value of awards granted | $ | $ 10 | $ 8.5 | |||||
Omnibus Incentive Plan 2023 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares available for issuance (in shares) | 3,000,000 | ||||||
2014 Omnibus Incentive Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares available for issuance (in shares) | 10,253,867 | ||||||
Restricted Stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Granted (in shares) | 1,855,541 | ||||||
Restricted Stock | Class A Common Stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Granted (in shares) | 1,855,541 | 1,417,561 | |||||
Non-Management Grantee | Mr. Miceli and Ms. Porcella | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Unrestricted shares granted (in shares) | 22,939 | 19,558 | |||||
Non-Management Grantee | Performance Based Vesting | Other Non-Management Grantees | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares granted with certain vesting rights (in shares) | 441,212 | 325,709 | |||||
Non-Management Grantee | Time-Based Vesting | Other Non-Management Grantees | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares granted with certain vesting rights (in shares) | 418,285 | 306,162 | |||||
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 | $ | $ 9.4 | $ 7.5 | |||||
Granted (in shares) | 882,436 | 651,429 | |||||
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 | |||||
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% | 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 | Catch-up Provision | Ms. McCormack and Mr. Perelman | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting percentage | 50% | 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% | 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 | $ | $ 1.4 | $ 1.2 | |||||
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% | 8% | |||||
Performance period | 3 years | 3 years | |||||
Management Grantees | Restricted Stock | 2014 Omnibus Incentive Plan | Catch-up Provision | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting percentage | 66.67% | 66.67% | |||||
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) | 937,560 | 733,607 | |||||
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) | 127,275 | 101,344 | |||||
Board of Directors | Restricted Stock | Class A Common Stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Granted (in shares) | 35,545 | 32,525 | |||||
Grant date fair value | $ | $ 0.4 | $ 0.4 | |||||
Vesting period | 1 year | 1 year |
FAIR VALUE OF FINANCIAL INSTR_3
FAIR VALUE OF FINANCIAL INSTRUMENTS - Estimated Fair Values of Financial Instruments (Details) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2024 USD ($) | Mar. 31, 2023 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | |
Assets: | ||||
Amortized Cost Basis | $ 476,490 | $ 499,389 | ||
Fair Value | 466,652 | 485,409 | ||
Liabilities: | ||||
Allowance for credit losses | (49,060) | $ (25,499) | (43,165) | $ (20,755) |
CMBS | ||||
Assets: | ||||
Amortized Cost Basis | 469,640 | 439,052 | ||
Fair Value | 459,609 | 424,890 | ||
CMBS interest-only | ||||
Assets: | ||||
Amortized Cost Basis | 5,583 | 6,453 | ||
Fair Value | 5,753 | 6,569 | ||
GNMA interest-only | ||||
Assets: | ||||
Amortized Cost Basis | 196 | 214 | ||
Fair Value | 202 | 213 | ||
Agency securities | ||||
Assets: | ||||
Amortized Cost Basis | 20 | 22 | ||
Fair Value | 19 | 21 | ||
U.S. Treasury securities | ||||
Assets: | ||||
Amortized Cost Basis | 1,051 | 53,648 | ||
Fair Value | $ 1,069 | 53,716 | ||
Total mortgage loan receivables held for investment, net, at amortized cost | ||||
Liabilities: | ||||
Period of short interest rate reset risk | 30 days | 30 days | ||
Recurring | Agency securities | ||||
Assets: | ||||
Principal Amount | $ 19 | $ 22 | ||
Recurring | CMBS | ||||
Assets: | ||||
Principal Amount | 470,399 | 439,679 | ||
Amortized Cost Basis | 469,640 | 439,052 | ||
Fair Value | $ 459,609 | $ 424,890 | ||
Recurring | CMBS | Internal model, third-party inputs | Yield % | ||||
Liabilities: | ||||
Financial instruments, measurement input | 0.0685 | 0.0683 | ||
Recurring | CMBS | Internal model, third-party inputs | Remaining Maturity/Duration (years) | ||||
Liabilities: | ||||
Financial instruments, measurement input | 1.92 | 2 | ||
Recurring | CMBS interest-only | ||||
Assets: | ||||
Principal Amount | $ 866,295 | $ 876,555 | ||
Amortized Cost Basis | 5,583 | 6,453 | ||
Fair Value | $ 5,753 | $ 6,569 | ||
Recurring | CMBS interest-only | Internal model, third-party inputs | Yield % | ||||
Liabilities: | ||||
Financial instruments, measurement input | 0.0694 | 0.0661 | ||
Recurring | CMBS interest-only | Internal model, third-party inputs | Remaining Maturity/Duration (years) | ||||
Liabilities: | ||||
Financial instruments, measurement input | 1.01 | 1.07 | ||
Recurring | GNMA interest-only | ||||
Assets: | ||||
Principal Amount | $ 36,699 | $ 37,053 | ||
Amortized Cost Basis | 196 | 214 | ||
Fair Value | $ 202 | $ 213 | ||
Recurring | GNMA interest-only | Internal model, third-party inputs | Yield % | ||||
Liabilities: | ||||
Financial instruments, measurement input | 0.0608 | 0.0612 | ||
Recurring | GNMA interest-only | Internal model, third-party inputs | Remaining Maturity/Duration (years) | ||||
Liabilities: | ||||
Financial instruments, measurement input | 3.39 | 3.60 | ||
Recurring | Agency securities | ||||
Assets: | ||||
Principal Amount | $ 19 | $ 22 | ||
Amortized Cost Basis | 20 | 22 | ||
Fair Value | $ 19 | $ 21 | ||
Recurring | Agency securities | Internal model, third-party inputs | Yield % | ||||
Liabilities: | ||||
Financial instruments, measurement input | 0.0269 | 0.0270 | ||
Recurring | Agency securities | Internal model, third-party inputs | Remaining Maturity/Duration (years) | ||||
Liabilities: | ||||
Financial instruments, measurement input | 0.93 | 1.05 | ||
Recurring | U.S. Treasury securities | ||||
Assets: | ||||
Principal Amount | $ 1,058 | $ 54,031 | ||
Amortized Cost Basis | 1,051 | 53,648 | ||
Fair Value | $ 1,069 | $ 53,716 | ||
Recurring | U.S. Treasury securities | Internal model, third-party inputs | Yield % | ||||
Liabilities: | ||||
Financial instruments, measurement input | 0.0525 | 0.0541 | ||
Recurring | U.S. Treasury securities | Internal model, third-party inputs | Remaining Maturity/Duration (years) | ||||
Liabilities: | ||||
Financial instruments, measurement input | 0.22 | 0.07 | ||
Recurring | Unrealized gain/(loss) | ||||
Assets: | ||||
Amortized Cost Basis | $ 160 | $ 160 | ||
Fair Value | 131 | 144 | ||
Recurring | Total mortgage loan receivables held for investment, net, at amortized cost | ||||
Assets: | ||||
Principal Amount | 2,803,919 | 3,164,226 | ||
Amortized Cost Basis | 2,797,945 | 3,155,089 | ||
Fair Value | 2,792,767 | $ 3,150,843 | ||
Recurring | Total mortgage loan receivables held for investment, net, at amortized cost | Discounted Cash Flow | ||||
Liabilities: | ||||
Allowance for credit losses | $ (49,100) | $ (43,200) | ||
Recurring | Total mortgage loan receivables held for investment, net, at amortized cost | Discounted Cash Flow | Yield % | ||||
Liabilities: | ||||
Financial instruments, measurement input | 0.0942 | 0.0965 | ||
Recurring | Total mortgage loan receivables held for investment, net, at amortized cost | Discounted Cash Flow | Remaining Maturity/Duration (years) | ||||
Liabilities: | ||||
Financial instruments, measurement input | 0.71 | 0.68 | ||
Recurring | Mortgage loan receivables held for sale | ||||
Assets: | ||||
Principal Amount | $ 31,350 | $ 31,350 | ||
Amortized Cost Basis | 26,955 | 26,868 | ||
Fair Value | $ 26,955 | $ 26,868 | ||
Recurring | Mortgage loan receivables held for sale | Internal model, third-party inputs | Yield % | ||||
Liabilities: | ||||
Financial instruments, measurement input | 0.0457 | 0.0457 | ||
Recurring | Mortgage loan receivables held for sale | Internal model, third-party inputs | Remaining Maturity/Duration (years) | ||||
Liabilities: | ||||
Financial instruments, measurement input | 7.94 | 8.19 | ||
Recurring | FHLB stock | ||||
Assets: | ||||
Principal Amount | $ 4,050 | $ 5,175 | ||
Amortized Cost Basis | 4,050 | 5,175 | ||
Fair Value | $ 4,050 | $ 5,175 | ||
Recurring | FHLB stock | FHLB stock | Yield % | ||||
Liabilities: | ||||
Financial instruments, measurement input | 0.0900 | 0.0825 | ||
Recurring | Nonhedge derivatives | ||||
Assets: | ||||
Nonhedge derivative assets | $ 116,700 | $ 194,900 | ||
Amortized Cost Basis | 674 | 1,454 | ||
Fair Value | $ 674 | $ 1,454 | ||
Recurring | Nonhedge derivatives | Counterparty quotations | Remaining Maturity/Duration (years) | ||||
Liabilities: | ||||
Financial instruments, measurement input | 0.48 | 0.48 | ||
Recurring | Repurchase agreements - short-term | ||||
Liabilities: | ||||
Amortized Cost Basis/Purchase Price | $ 185,364 | $ 337,631 | ||
Fair Value | 185,364 | 337,631 | ||
Principal Amount | $ 185,364 | $ 337,631 | ||
Recurring | Repurchase agreements - short-term | Cost plus Accrued Interest | Yield % | ||||
Liabilities: | ||||
Financial instruments, measurement input | 0.0759 | 0.0757 | ||
Recurring | Repurchase agreements - short-term | Cost plus Accrued Interest | Remaining Maturity/Duration (years) | ||||
Liabilities: | ||||
Financial instruments, measurement input | 0.36 | 0.48 | ||
Recurring | Repurchase agreements - long-term | ||||
Liabilities: | ||||
Amortized Cost Basis/Purchase Price | $ 303,517 | $ 268,976 | ||
Fair Value | 303,517 | 268,976 | ||
Principal Amount | $ 303,517 | $ 268,976 | ||
Recurring | Repurchase agreements - long-term | Discounted Cash Flow | Yield % | ||||
Liabilities: | ||||
Financial instruments, measurement input | 0.0738 | 0.0735 | ||
Recurring | Repurchase agreements - long-term | Discounted Cash Flow | Remaining Maturity/Duration (years) | ||||
Liabilities: | ||||
Financial instruments, measurement input | 1.50 | 1.74 | ||
Recurring | Mortgage loan financing | ||||
Liabilities: | ||||
Amortized Cost Basis/Purchase Price | $ 478,797 | $ 437,759 | ||
Fair Value | 464,499 | 425,992 | ||
Principal Amount | $ 477,719 | $ 437,384 | ||
Recurring | Mortgage loan financing | Discounted Cash Flow | Yield % | ||||
Liabilities: | ||||
Financial instruments, measurement input | 0.0596 | 0.0587 | ||
Recurring | Mortgage loan financing | Discounted Cash Flow | Remaining Maturity/Duration (years) | ||||
Liabilities: | ||||
Financial instruments, measurement input | 3.03 | 2.64 | ||
Recurring | CLO debt | ||||
Liabilities: | ||||
Amortized Cost Basis/Purchase Price | $ 1,046,700 | $ 1,060,719 | ||
Fair Value | 1,046,700 | 1,060,719 | ||
Principal Amount | $ 1,047,893 | $ 1,062,777 | ||
Recurring | CLO debt | Discounted Cash Flow | Yield % | ||||
Liabilities: | ||||
Financial instruments, measurement input | 0.0705 | 0.0708 | ||
Recurring | CLO debt | Discounted Cash Flow | Remaining Maturity/Duration (years) | ||||
Liabilities: | ||||
Financial instruments, measurement input | 1.64 | 1.89 | ||
Recurring | Borrowings from the FHLB | ||||
Liabilities: | ||||
Amortized Cost Basis/Purchase Price | $ 90,000 | $ 115,000 | ||
Fair Value | 90,000 | 115,000 | ||
Principal Amount | $ 90,000 | $ 115,000 | ||
Recurring | Borrowings from the FHLB | Discounted Cash Flow | Yield % | ||||
Liabilities: | ||||
Financial instruments, measurement input | 0.0574 | 0.0582 | ||
Recurring | Borrowings from the FHLB | Discounted Cash Flow | Remaining Maturity/Duration (years) | ||||
Liabilities: | ||||
Financial instruments, measurement input | 0.39 | 0.57 | ||
Recurring | Senior unsecured notes | ||||
Liabilities: | ||||
Amortized Cost Basis/Purchase Price | $ 1,562,651 | $ 1,563,861 | ||
Fair Value | 1,472,537 | 1,475,303 | ||
Principal Amount | $ 1,573,614 | $ 1,575,614 | ||
Recurring | Senior unsecured notes | Internal model, third-party inputs | Yield % | ||||
Liabilities: | ||||
Financial instruments, measurement input | 0.0466 | 0.0466 | ||
Recurring | Senior unsecured notes | Internal model, third-party inputs | Remaining Maturity/Duration (years) | ||||
Liabilities: | ||||
Financial instruments, measurement input | 3.52 | 3.77 |
FAIR VALUE OF FINANCIAL INSTR_4
FAIR VALUE OF FINANCIAL INSTRUMENTS - Summary of Financial Assets and Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
Assets: | ||||
Fair value of assets | $ 2,832,993 | $ 3,192,150 | ||
Liabilities: | ||||
Fair value of liabilities | 3,562,617 | 3,683,621 | ||
Allowance for credit losses | (49,060) | $ (43,165) | (25,499) | $ (20,755) |
Repurchase agreements - short-term | ||||
Liabilities: | ||||
Principal Amount | 185,364 | 337,631 | ||
Fair value of liabilities | 185,364 | 337,631 | ||
Repurchase agreements - long-term | ||||
Liabilities: | ||||
Principal Amount | 303,517 | 268,976 | ||
Fair value of liabilities | 303,517 | 268,976 | ||
Mortgage loan financing | ||||
Liabilities: | ||||
Principal Amount | 477,719 | 437,384 | ||
Fair value of liabilities | 464,499 | 425,992 | ||
CLO debt | ||||
Liabilities: | ||||
Principal Amount | 1,047,893 | 1,062,777 | ||
Fair value of liabilities | 1,046,700 | 1,060,719 | ||
Borrowings from the FHLB | ||||
Liabilities: | ||||
Principal Amount | 90,000 | 115,000 | ||
Fair value of liabilities | 90,000 | 115,000 | ||
Senior unsecured notes | ||||
Liabilities: | ||||
Principal Amount | 1,573,614 | 1,575,614 | ||
Fair value of liabilities | 1,472,537 | 1,475,303 | ||
CMBS | ||||
Assets: | ||||
Principal Amount | 9,247 | 9,281 | ||
Fair value of assets | 8,937 | 8,955 | ||
CMBS interest-only | ||||
Assets: | ||||
Principal Amount | 8,292 | 8,327 | ||
Fair value of assets | 284 | 309 | ||
Total mortgage loan receivables held for investment, net, at amortized cost | ||||
Assets: | ||||
Principal Amount | 2,803,919 | 3,164,226 | ||
Fair value of assets | 2,792,767 | 3,150,843 | ||
Mortgage loan receivables held for sale | ||||
Assets: | ||||
Principal Amount | 31,350 | 31,350 | ||
Fair value of assets | 26,955 | 26,868 | ||
FHLB stock | ||||
Assets: | ||||
Principal Amount | 4,050 | 5,175 | ||
Fair value of assets | 4,050 | 5,175 | ||
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 | Mortgage loan receivables held for sale | ||||
Assets: | ||||
Fair value of assets | 0 | 0 | ||
Level 1 | FHLB stock | ||||
Assets: | ||||
Fair value of assets | 0 | 0 | ||
Level 2 | ||||
Assets: | ||||
Fair value of assets | 9,221 | 9,264 | ||
Liabilities: | ||||
Fair value of liabilities | 1,535,581 | 1,667,326 | ||
Level 2 | Repurchase agreements - short-term | ||||
Liabilities: | ||||
Fair value of liabilities | 185,364 | 337,631 | ||
Level 2 | Repurchase agreements - long-term | ||||
Liabilities: | ||||
Fair value of liabilities | 303,517 | 268,976 | ||
Level 2 | Mortgage loan financing | ||||
Liabilities: | ||||
Fair value of liabilities | 0 | 0 | ||
Level 2 | CLO debt | ||||
Liabilities: | ||||
Fair value of liabilities | 1,046,700 | 1,060,719 | ||
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 | 8,937 | 8,955 | ||
Level 2 | CMBS interest-only | ||||
Assets: | ||||
Fair value of assets | 284 | 309 | ||
Level 2 | Total mortgage loan receivables held for investment, net, at amortized cost | ||||
Assets: | ||||
Fair value of assets | 0 | 0 | ||
Level 2 | Mortgage loan receivables held for sale | ||||
Assets: | ||||
Fair value of assets | 0 | 0 | ||
Level 2 | FHLB stock | ||||
Assets: | ||||
Fair value of assets | 0 | 0 | ||
Level 3 | ||||
Assets: | ||||
Fair value of assets | 2,823,772 | 3,182,886 | ||
Liabilities: | ||||
Fair value of liabilities | 2,027,036 | 2,016,295 | ||
Level 3 | Repurchase agreements - short-term | ||||
Liabilities: | ||||
Fair value of liabilities | 0 | 0 | ||
Level 3 | Repurchase agreements - long-term | ||||
Liabilities: | ||||
Fair value of liabilities | 0 | 0 | ||
Level 3 | Mortgage loan financing | ||||
Liabilities: | ||||
Fair value of liabilities | 464,499 | 425,992 | ||
Level 3 | CLO debt | ||||
Liabilities: | ||||
Fair value of liabilities | 0 | 0 | ||
Level 3 | Borrowings from the FHLB | ||||
Liabilities: | ||||
Fair value of liabilities | 90,000 | 115,000 | ||
Level 3 | Senior unsecured notes | ||||
Liabilities: | ||||
Fair value of liabilities | 1,472,537 | 1,475,303 | ||
Level 3 | CMBS | ||||
Assets: | ||||
Fair value of assets | 0 | 0 | ||
Level 3 | CMBS interest-only | ||||
Assets: | ||||
Fair value of assets | 0 | 0 | ||
Level 3 | Total mortgage loan receivables held for investment, net, at amortized cost | ||||
Assets: | ||||
Fair value of assets | 2,792,767 | 3,150,843 | ||
Level 3 | Mortgage loan receivables held for sale | ||||
Assets: | ||||
Fair value of assets | 26,955 | 26,868 | ||
Level 3 | FHLB stock | ||||
Assets: | ||||
Fair value of assets | 4,050 | 5,175 | ||
Recurring | ||||
Assets: | ||||
Fair value of assets | 458,236 | 477,743 | ||
Recurring | CMBS interest-only | ||||
Assets: | ||||
Principal Amount | 866,295 | 876,555 | ||
Recurring | Total mortgage loan receivables held for investment, net, at amortized cost | ||||
Assets: | ||||
Principal Amount | 2,803,919 | $ 3,164,226 | ||
Recurring | Total mortgage loan receivables held for investment, net, at amortized cost | Discounted Cash Flow | ||||
Liabilities: | ||||
Allowance for credit losses | (49,100) | (43,200) | ||
Recurring | CMBS | ||||
Assets: | ||||
Principal Amount | 461,152 | 430,398 | ||
Fair value of assets | 450,672 | 415,935 | ||
Recurring | CMBS interest-only | ||||
Assets: | ||||
Principal Amount | 858,003 | 868,228 | ||
Fair value of assets | 5,469 | 6,260 | ||
Recurring | GNMA interest-only | ||||
Assets: | ||||
Principal Amount | 36,699 | 37,053 | ||
Fair value of assets | 202 | 213 | ||
Recurring | Agency securities | ||||
Assets: | ||||
Principal Amount | 19 | 22 | ||
Fair value of assets | 19 | 21 | ||
Recurring | U.S. Treasury securities | ||||
Assets: | ||||
Principal Amount | 1,058 | 54,031 | ||
Fair value of assets | 1,069 | 53,716 | ||
Recurring | Unrealized gain/(loss) | ||||
Assets: | ||||
Fair value of assets | 131 | 144 | ||
Recurring | Nonhedge derivatives | ||||
Assets: | ||||
Principal Amount | 116,700 | 194,900 | ||
Fair value of assets | 674 | 1,454 | ||
Recurring | Level 1 | ||||
Assets: | ||||
Fair value of assets | 1,200 | 53,860 | ||
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 | U.S. Treasury securities | ||||
Assets: | ||||
Fair value of assets | 1,069 | 53,716 | ||
Recurring | Level 1 | Unrealized gain/(loss) | ||||
Assets: | ||||
Fair value of assets | 131 | 144 | ||
Recurring | Level 1 | Nonhedge derivatives | ||||
Assets: | ||||
Fair value of assets | 0 | 0 | ||
Recurring | Level 2 | ||||
Assets: | ||||
Fair value of assets | 457,036 | 423,883 | ||
Recurring | Level 2 | CMBS | ||||
Assets: | ||||
Fair value of assets | 450,672 | 415,935 | ||
Recurring | Level 2 | CMBS interest-only | ||||
Assets: | ||||
Fair value of assets | 5,469 | 6,260 | ||
Recurring | Level 2 | GNMA interest-only | ||||
Assets: | ||||
Fair value of assets | 202 | 213 | ||
Recurring | Level 2 | Agency securities | ||||
Assets: | ||||
Fair value of assets | 19 | 21 | ||
Recurring | Level 2 | U.S. Treasury securities | ||||
Assets: | ||||
Fair value of assets | 0 | 0 | ||
Recurring | Level 2 | Unrealized gain/(loss) | ||||
Assets: | ||||
Fair value of assets | 0 | 0 | ||
Recurring | Level 2 | Nonhedge derivatives | ||||
Assets: | ||||
Fair value of assets | 674 | 1,454 | ||
Recurring | Level 3 | ||||
Assets: | ||||
Fair value of assets | 0 | 0 | ||
Recurring | Level 3 | CMBS | ||||
Assets: | ||||
Fair value of assets | 0 | 0 | ||
Recurring | Level 3 | CMBS interest-only | ||||
Assets: | ||||
Fair value of assets | 0 | 0 | ||
Recurring | Level 3 | GNMA interest-only | ||||
Assets: | ||||
Fair value of assets | 0 | 0 | ||
Recurring | Level 3 | Agency 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 | Unrealized gain/(loss) | ||||
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, 2024 | Mar. 31, 2023 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | $ 542,646 | |
Transfer into level 3 | 0 | |
Purchases | 546 | |
Sales | (10,689) | |
Paydowns/maturities | (49,180) | |
Amortization of premium/discount | (880) | |
Unrealized gain/(loss) | 3,616 | |
Realized gain/(loss) on sale | (312) | |
Ending balance | $ 485,747 | |
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 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) | 3 Months Ended | |||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | Apr. 30, 2023 | |
Income Tax Contingency [Line Items] | ||||
Income tax expense (benefit) | $ 600,000 | $ 900,000 | ||
Deferred income tax expense (benefit) | 1,300,000 | 800,000 | ||
Deferred tax asset related to capital losses | 2,900,000 | |||
Settlement pertaining to audit | $ 2,600,000 | |||
Incremental income tax expense due to audit | $ 200,000 | |||
Other assets | ||||
Income Tax Contingency [Line Items] | ||||
Deferred tax liabilities | (4,300,000) | $ (3,000,000) | ||
Accrued Liabilities | ||||
Income Tax Contingency [Line Items] | ||||
Liability for unrecognized tax benefits for uncertain income tax positions | $ 0 | $ 0 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Related Party Transactions [Abstract] | |
Related party relationships | $ 0 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Unfunded Loan Commitments | |||
Lease liabilities | $ 16,165 | ||
Operating lease, right-of-use asset | $ 14,400 | ||
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 | $ 500 | |
Treasury bills traded and not yet settled | 0 | $ 109,717 | |
Provision for loan losses | |||
Unfunded Loan Commitments | |||
Unfunded commitments of mortgage loan receivables held for investment | $ 128,100 | $ 204,000 | |
Length of additional mortgage loan financing | 3 years | ||
Unfunded commitments of mortgage loan receivables held for investment, additional funds | 61% | ||
U.S. Treasury Securities Traded, Not Yet Settled | |||
Unfunded Loan Commitments | |||
Treasury bills traded and not yet settled | $ 44,800 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Future Minimum Operating Lease Obligation (Details) $ in Thousands | Mar. 31, 2024 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2024 (last nine months) | $ 1,650 |
2025 | 2,207 |
2026 | 2,219 |
2027 | 2,232 |
2028 | 2,306 |
Thereafter | 11,038 |
Total undiscounted cash flows | 21,652 |
Present value discount | (5,487) |
Lease liabilities | $ 16,165 |
Weighted average incremental borrowing rate | 6.62% |
Remaining lease term | 9 years 3 months 18 days |
Extended lease term | 5 years |
SEGMENT REPORTING - Additional
SEGMENT REPORTING - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2024 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, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | ||||
Income Statement [Abstract] | ||||||
Interest income | $ 95,912 | $ 103,796 | ||||
Interest expense | (58,771) | (60,749) | ||||
Net interest income (expense) | 37,141 | 43,047 | ||||
(Provision for) release of loan loss reserves | (5,768) | (4,736) | ||||
Net interest income (expense) after provision for (release of) loan loss reserves | 31,373 | 38,311 | ||||
Real estate operating income | 23,887 | 23,199 | ||||
Net result from mortgage loan receivables held for sale | 87 | (194) | ||||
Fee and other income | 3,700 | 1,641 | ||||
Net result from derivative transactions | 4,019 | (2,242) | ||||
Earnings (loss) from investment in unconsolidated ventures | (15) | 217 | ||||
Gain (loss) on extinguishment of debt | 177 | 9,217 | ||||
Total other income (loss) | 31,855 | 31,838 | ||||
Compensation and employee benefits | (20,789) | (22,084) | ||||
Operating expenses | (4,643) | (5,256) | ||||
Real estate operating expenses | (9,146) | (9,849) | ||||
Fee expense | (1,520) | |||||
Investment related expenses | (1,993) | (1,520) | ||||
Depreciation and amortization | (8,302) | (7,529) | ||||
Total costs and expenses | (44,873) | (46,238) | ||||
Income tax (expense) benefit | (1,925) | (1,720) | ||||
Net income (loss) | 16,430 | 22,191 | ||||
Total assets | 5,322,798 | [1] | 5,512,677 | $ 5,512,677 | [1] | |
Investment in unconsolidated ventures | [1] | 6,862 | 6,877 | |||
FHLB stock | 4,100 | 5,200 | ||||
Operating Segment | ||||||
Income Statement [Abstract] | ||||||
Investment in unconsolidated ventures | 6,900 | 6,900 | ||||
Operating Segment | Loans | ||||||
Income Statement [Abstract] | ||||||
Interest income | 73,624 | 90,874 | ||||
Interest expense | (29,450) | (28,728) | ||||
Net interest income (expense) | 44,174 | 62,146 | ||||
(Provision for) release of loan loss reserves | (5,768) | (4,736) | ||||
Net interest income (expense) after provision for (release of) loan loss reserves | 38,406 | 57,410 | ||||
Real estate operating income | 0 | 0 | ||||
Net result from mortgage loan receivables held for sale | 943 | (194) | ||||
Fee and other income | 3,505 | 1,681 | ||||
Net result from derivative transactions | 640 | (1,843) | ||||
Earnings (loss) from investment in unconsolidated ventures | 0 | 0 | ||||
Gain (loss) on extinguishment of debt | 0 | 0 | ||||
Total other income (loss) | 5,088 | (356) | ||||
Compensation and employee benefits | 0 | 0 | ||||
Operating expenses | 0 | 0 | ||||
Real estate operating expenses | 0 | 0 | ||||
Fee expense | (967) | |||||
Investment related expenses | (1,589) | |||||
Depreciation and amortization | 0 | 0 | ||||
Total costs and expenses | (1,589) | (967) | ||||
Income tax (expense) benefit | 0 | 0 | ||||
Net income (loss) | 41,905 | 56,087 | ||||
Total assets | 2,775,840 | 3,138,794 | ||||
Operating Segment | Securities | ||||||
Income Statement [Abstract] | ||||||
Interest income | 7,892 | 10,129 | ||||
Interest expense | (28) | (2,633) | ||||
Net interest income (expense) | 7,864 | 7,496 | ||||
(Provision for) release of loan loss reserves | 0 | 0 | ||||
Net interest income (expense) after provision for (release of) loan loss reserves | 7,864 | 7,496 | ||||
Real estate operating income | 0 | 0 | ||||
Net result from mortgage loan receivables held for sale | 0 | 0 | ||||
Fee and other income | 76 | (186) | ||||
Net result from derivative transactions | 71 | (302) | ||||
Earnings (loss) from investment in unconsolidated ventures | 0 | 0 | ||||
Gain (loss) on extinguishment of debt | 0 | 0 | ||||
Total other income (loss) | 147 | (488) | ||||
Compensation and employee benefits | 0 | 0 | ||||
Operating expenses | 0 | 0 | ||||
Real estate operating expenses | 0 | 0 | ||||
Fee expense | (48) | |||||
Investment related expenses | (47) | |||||
Depreciation and amortization | 0 | 0 | ||||
Total costs and expenses | (47) | (48) | ||||
Income tax (expense) benefit | 0 | 0 | ||||
Net income (loss) | 7,964 | 6,960 | ||||
Total assets | 466,763 | 485,533 | ||||
Operating Segment | Real Estate | ||||||
Income Statement [Abstract] | ||||||
Interest income | 109 | 2 | ||||
Interest expense | (8,350) | (6,653) | ||||
Net interest income (expense) | (8,241) | (6,651) | ||||
(Provision for) release of loan loss reserves | 0 | 0 | ||||
Net interest income (expense) after provision for (release of) loan loss reserves | (8,241) | (6,651) | ||||
Real estate operating income | 23,887 | 23,199 | ||||
Net result from mortgage loan receivables held for sale | 0 | 0 | ||||
Fee and other income | 2 | 2 | ||||
Net result from derivative transactions | 170 | (97) | ||||
Earnings (loss) from investment in unconsolidated ventures | (15) | 217 | ||||
Gain (loss) on extinguishment of debt | 0 | 0 | ||||
Total other income (loss) | 24,044 | 23,321 | ||||
Compensation and employee benefits | 0 | 0 | ||||
Operating expenses | 0 | 0 | ||||
Real estate operating expenses | (9,146) | (9,849) | ||||
Fee expense | (93) | |||||
Investment related expenses | (93) | |||||
Depreciation and amortization | (8,192) | (7,425) | ||||
Total costs and expenses | (17,431) | (17,367) | ||||
Income tax (expense) benefit | 0 | 0 | ||||
Net income (loss) | (1,628) | (697) | ||||
Total assets | 740,497 | 733,319 | ||||
Corporate/Other | ||||||
Income Statement [Abstract] | ||||||
Interest income | 14,287 | 2,791 | ||||
Interest expense | (20,943) | (22,735) | ||||
Net interest income (expense) | (6,656) | (19,944) | ||||
(Provision for) release of loan loss reserves | 0 | 0 | ||||
Net interest income (expense) after provision for (release of) loan loss reserves | (6,656) | (19,944) | ||||
Real estate operating income | 0 | 0 | ||||
Net result from mortgage loan receivables held for sale | (856) | 0 | ||||
Fee and other income | 117 | 144 | ||||
Net result from derivative transactions | 3,138 | 0 | ||||
Earnings (loss) from investment in unconsolidated ventures | 0 | 0 | ||||
Gain (loss) on extinguishment of debt | 177 | 9,217 | ||||
Total other income (loss) | 2,576 | 9,361 | ||||
Compensation and employee benefits | (20,789) | (22,084) | ||||
Operating expenses | (4,643) | (5,256) | ||||
Real estate operating expenses | 0 | 0 | ||||
Fee expense | (412) | |||||
Investment related expenses | (264) | |||||
Depreciation and amortization | (110) | (104) | ||||
Total costs and expenses | (25,806) | (27,856) | ||||
Income tax (expense) benefit | (1,925) | (1,720) | ||||
Net income (loss) | (31,811) | (40,159) | ||||
Total assets | 1,339,698 | $ 1,155,031 | ||||
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. |