Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2022 | Nov. 08, 2022 | |
Cover [Abstract] | ||
Entity Registrant Name | Claros Mortgage Trust, Inc. | |
Entity Central Index Key | 0001666291 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Sep. 30, 2022 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Trading Symbol | CMTG | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 138,376,144 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Entity File Number | 001-40993 | |
Entity Tax Identification Number | 47-4074900 | |
Entity Address, Address Line One | c/o Mack Real Estate Credit Strategies, L.P. | |
Entity Address, Address Line Two | 60 Columbus Circle | |
Entity Address, Address Line Three | 20th Floor | |
Entity Address, City or Town | New York | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10023 | |
City Area Code | 212 | |
Local Phone Number | 484-0050 | |
Title of 12(b) Security | Common Stock, $0.01 par value per share | |
Security Exchange Name | NYSE | |
Entity Incorporation, State or Country Code | MD |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Assets | ||
Cash and cash equivalents | $ 225,556 | $ 310,194 |
Restricted cash | 37,110 | 23,942 |
Loan principal payments held by servicer | 7,651 | 154,600 |
Loans receivable held-for-investment | 7,329,411 | 6,407,305 |
Less: current expected credit loss reserve | (59,188) | (67,010) |
Loans receivable held-for-investment, net | 7,270,223 | 6,340,295 |
Equity method investment | 40,731 | |
Interests in loans receivable held-for-investment, net | 161,850 | |
Real estate owned, net | 402,830 | 406,887 |
Other assets | 73,803 | 57,503 |
Total assets | 8,057,904 | 7,455,271 |
Liabilities and Stockholders' Equity | ||
Repurchase agreements | 3,993,720 | 3,489,511 |
Loan participations sold, net | 263,656 | 167,744 |
Notes payable, net | 123,841 | 48,000 |
Secured term loan, net | 737,516 | 739,762 |
Debt related to real estate owned, net | 289,258 | 289,806 |
Other liabilities | 52,581 | 54,457 |
Dividends payable | 52,219 | 51,741 |
Management fee payable - affiliate | 9,928 | 9,983 |
Total liabilities | 5,522,719 | 4,851,004 |
Commitments and contingencies - Note 14 | ||
Stockholders' Equity | ||
Common stock, $0.01 par value, 500,000,000 shares authorized, 140,055,714 and 140,055,714 shares issued and 138,970,498 and 139,840,088 shares outstanding at September 30, 2022 and December 31, 2021, respectively | 1,400 | 1,400 |
Additional paid-in capital | 2,716,376 | 2,726,190 |
Dividends declared | (982,008) | (825,659) |
Retained earnings | 799,417 | 664,700 |
Total Claros Mortgage Trust, Inc. equity | 2,535,185 | 2,566,631 |
Non-controlling interests | 37,636 | |
Total stockholders' equity | 2,535,185 | 2,604,267 |
Total liabilities and stockholders' equity | $ 8,057,904 | $ 7,455,271 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Sep. 30, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Common stock par value | $ 0.01 | $ 0.01 |
Common stock authorized | 500,000,000 | 500,000,000 |
Common stock, shares issued | 140,055,714 | 140,055,714 |
Common stock outstanding | 138,970,498 | 139,840,088 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Revenue | ||||
Interest and related income | $ 126,520 | $ 103,876 | $ 316,207 | $ 314,326 |
Less: interest and related expense | 67,985 | 45,430 | 154,436 | 138,187 |
Net interest income | 58,535 | 58,446 | 161,771 | 176,139 |
Revenue from real estate owned | 17,882 | 8,550 | 41,813 | 15,620 |
Total revenue | 76,417 | 66,996 | 203,584 | 191,759 |
Expenses | ||||
Management fees - affiliate | 9,944 | 9,789 | 29,594 | 29,152 |
General and administrative expenses | 4,819 | 1,330 | 13,910 | 5,393 |
Stock-based compensation expense | 3,426 | (186) | 4,030 | (376) |
Operating expenses from real estate owned | 11,366 | 7,948 | 29,682 | 16,739 |
Interest expense on debt related to real estate owned | 3,903 | 2,640 | 9,206 | 13,001 |
Depreciation on real estate owned | 2,064 | 1,940 | 6,002 | 5,173 |
Total expenses | 35,522 | 23,461 | 92,424 | 69,082 |
Realized gain on sale of loan | 30,090 | |||
Unrealized gain on interest rate cap | 2,776 | 5,613 | ||
Gain on foreclosure of real estate owned | 1,430 | |||
Income from equity method investment | 929 | 929 | ||
Other income | 5,855 | |||
(Provision) reversal of current expected credit loss reserve | (2,352) | 9,306 | (12,984) | 17,413 |
Income before income taxes | 42,248 | 52,841 | 134,808 | 147,375 |
Income tax benefit | 6,025 | |||
Net income | 42,248 | 52,841 | 134,808 | 153,400 |
Net income (loss) attributable to non-controlling interests | 177 | (40) | 91 | (118) |
Net income attributable to preferred stock | 4 | 12 | ||
Net income attributable to common stock | $ 42,071 | $ 52,877 | $ 134,717 | $ 153,506 |
Net income per share of common stock | ||||
Net income per share of common stock - basic | $ 0.30 | $ 0.40 | $ 0.95 | $ 1.15 |
Net income per share of common stock - diluted | $ 0.30 | $ 0.40 | $ 0.95 | $ 1.15 |
Weighted-average shares of common stock outstanding | ||||
Weighted-average shares of common stock outstanding - basic | 139,430,153 | 133,433,487 | 139,592,500 | 133,491,390 |
Weighted-average shares of common stock outstanding - diluted | 139,430,153 | 133,433,487 | 139,592,500 | 133,491,390 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity (unaudited) - USD ($) $ in Thousands | Total | Cumulative Effect Period of Adoption Adjustment [Member] | Dividend Declared [Member] | Preferred Stock [Member] | Common Stock [Member] | Repurchased Shares [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Retained Earnings [Member] Cumulative Effect Period of Adoption Adjustment [Member] | Noncontrolling Interests [Member] | Redeemable Common Stock [Member] | Redeemable Common Stock [Member] Cumulative Effect Period of Adoption Adjustment [Member] | |
Balance at Dec. 31, 2020 | $ 2,481,030 | $ (573,677) | $ 125 | $ 1,255 | $ 2,491,836 | $ 526,205 | $ 35,286 | ||||||
Balance (Accounting Standards Update 2016-13 [Member]) at Dec. 31, 2020 | $ (73,975) | $ (73,975) | $ (4,276) | ||||||||||
Balance (in shares) at Dec. 31, 2020 | 125 | 125,541,736 | |||||||||||
Balance at Dec. 31, 2020 | $ 141,356 | ||||||||||||
Contributions from non-controlling interests | 897 | 897 | |||||||||||
Offering costs | (28) | (28) | (2) | ||||||||||
Dividends declared on common stock | $ (50,000) | ||||||||||||
Stock-based compensation expense | (7,394) | (7,394) | |||||||||||
Dividends paid/accrued on preferred stock | (4) | $ (4) | [1] | ||||||||||
Dividends declared on common stock, redeemable common stock and vested restricted stock units | (47,262) | (47,262) | (2,738) | ||||||||||
Accrued dividends on unvested restricted stock units | 389 | 389 | |||||||||||
Accretion of redeemable common stock | 81 | 81 | |||||||||||
Temporary Equity, Accretion of redeemable common stock | (81) | ||||||||||||
Net income (loss) | 55,367 | 4 | 55,400 | (37) | 3,208 | ||||||||
Balance at Mar. 31, 2021 | 2,409,101 | (620,550) | $ 125 | $ 1,255 | 2,484,495 | 507,630 | 36,146 | ||||||
Balance (in shares) at Mar. 31, 2021 | 125 | 125,541,736 | |||||||||||
Balance at Mar. 31, 2021 | 137,467 | ||||||||||||
Issuance of common stock, Shares | 584,767 | ||||||||||||
Issuance of common stock | $ 6 | (6) | |||||||||||
Contributions from non-controlling interests | 539 | 539 | |||||||||||
Dividends declared on common stock | (50,000) | ||||||||||||
Stock-based compensation expense | 1,452 | 1,452 | |||||||||||
Dividends paid/accrued on preferred stock | (4) | $ (4) | [1] | ||||||||||
Dividends declared on common stock, redeemable common stock and vested restricted stock units | (47,262) | (47,262) | (2,738) | ||||||||||
Accrued dividends on unvested restricted stock units | (300) | (300) | |||||||||||
Accretion of redeemable common stock | (63) | (63) | |||||||||||
Temporary Equity, Accretion of redeemable common stock | 63 | ||||||||||||
Net income (loss) | 39,683 | 4 | 39,720 | (41) | 2,301 | ||||||||
Balance at Jun. 30, 2021 | 2,403,146 | (668,112) | $ 125 | $ 1,261 | 2,485,878 | 547,350 | 36,644 | ||||||
Balance (in shares) at Jun. 30, 2021 | 125 | 126,126,503 | |||||||||||
Balance at Jun. 30, 2021 | 137,093 | ||||||||||||
Restricted stock units earned | (147) | (147) | |||||||||||
Contributions from non-controlling interests | 539 | 539 | |||||||||||
Offering costs | (202) | (202) | (12) | ||||||||||
Dividends declared on common stock | $ (50,000) | ||||||||||||
Dividends paid/accrued on preferred stock | (4) | $ (4) | [1] | ||||||||||
Dividends declared on common stock, redeemable common stock and vested restricted stock units | (47,262) | (47,262) | (2,738) | ||||||||||
Dividends on unvested restricted stock units | 57 | 57 | |||||||||||
Accretion of redeemable common stock | 5 | 5 | |||||||||||
Temporary Equity, Accretion of redeemable common stock | (5) | ||||||||||||
Net income (loss) | 49,945 | 4 | 49,981 | (40) | 2,896 | ||||||||
Balance at Sep. 30, 2021 | 2,406,077 | (715,317) | $ 125 | $ 1,261 | 2,485,534 | 597,331 | 37,143 | ||||||
Balance (in shares) at Sep. 30, 2021 | 125 | 126,126,503 | |||||||||||
Balance at Sep. 30, 2021 | $ 137,234 | ||||||||||||
Balance at Dec. 31, 2021 | 2,604,267 | (825,659) | $ 1,400 | 2,726,190 | 664,700 | 37,636 | |||||||
Balance (in shares) at Dec. 31, 2021 | 140,055,714 | (215,626) | |||||||||||
Repurchased shares | (3,179) | (3,179) | |||||||||||
Repurchase of common shares | (186,289) | ||||||||||||
Contributions from non-controlling interests | 539 | 539 | |||||||||||
Offering costs | (30) | (30) | |||||||||||
Dividends declared on common stock | (51,672) | (51,672) | $ (51,672) | ||||||||||
Net income (loss) | 29,371 | 29,412 | (41) | ||||||||||
Balance at Mar. 31, 2022 | 2,579,296 | (877,331) | $ 1,400 | 2,722,981 | 694,112 | 38,134 | |||||||
Balance (in shares) at Mar. 31, 2022 | 140,055,714 | (401,915) | |||||||||||
Balance at Dec. 31, 2021 | 2,604,267 | (825,659) | $ 1,400 | 2,726,190 | 664,700 | 37,636 | |||||||
Balance (in shares) at Dec. 31, 2021 | 140,055,714 | (215,626) | |||||||||||
Repurchase of common shares | (869,590) | ||||||||||||
Balance at Sep. 30, 2022 | 2,535,185 | (982,008) | $ 1,400 | 2,716,376 | 799,417 | ||||||||
Balance (in shares) at Sep. 30, 2022 | 140,055,714 | (1,085,216) | |||||||||||
Balance at Mar. 31, 2022 | 2,579,296 | (877,331) | $ 1,400 | 2,722,981 | 694,112 | 38,134 | |||||||
Balance (in shares) at Mar. 31, 2022 | 140,055,714 | (401,915) | |||||||||||
Repurchased shares | (592) | (592) | |||||||||||
Repurchase of common shares | (33,721) | ||||||||||||
Contributions from non-controlling interests | 367 | 367 | |||||||||||
Dividends declared on common stock | $ (51,659) | ||||||||||||
Stock-based compensation expense | 604 | 604 | |||||||||||
Dividends declared on common stock and participated securities | (52,458) | (52,458) | |||||||||||
Net income (loss) | 63,189 | 63,234 | (45) | ||||||||||
Balance at Jun. 30, 2022 | 2,590,406 | (929,789) | $ 1,400 | 2,722,993 | 757,346 | 38,456 | |||||||
Balance (in shares) at Jun. 30, 2022 | 140,055,714 | (435,636) | |||||||||||
Repurchased shares | (10,092) | $ 649,580 | (10,092) | ||||||||||
Dividends declared on common stock | $ (51,419) | ||||||||||||
Stock-based compensation expense | 3,475 | 3,475 | |||||||||||
Deconsolidation of subsidiary | (38,633) | (38,633) | |||||||||||
Dividends declared on common stock and participated securities | (52,219) | (52,219) | |||||||||||
Net income (loss) | 42,248 | 42,071 | $ 177 | ||||||||||
Balance at Sep. 30, 2022 | $ 2,535,185 | $ (982,008) | $ 1,400 | $ 2,716,376 | $ 799,417 | ||||||||
Balance (in shares) at Sep. 30, 2022 | 140,055,714 | (1,085,216) | |||||||||||
[1] Includes 125 preferred units issued at a price of $ 1,000 per unit and entitled to a 12.50 % dividend paid semi-annually that were redeemed on December 15, 2021 at a price of $ 1,000 per unit. |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Cash flows from operating activities | ||
Net income | $ 134,808 | $ 153,400 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Accretion of origination fees on loans receivable | (19,351) | (18,677) |
Accretion of origination fees on interests in loans receivable | (204) | (849) |
Amortization of financing costs | 14,651 | 16,277 |
Non-cash stock-based compensation | 4,079 | (376) |
Other income | (5,855) | |
Depreciation on real estate owned | 6,002 | 5,173 |
Unrealized gain on interest rate cap | (5,613) | |
Income from equity method investment | (929) | |
Distribution from equity method investment | 408 | |
Realized gain on sale of loan | (30,090) | |
Gain on foreclosure of real estate owned | (1,430) | |
Non-cash advances on loans receivable in lieu of interest | (51,842) | (55,792) |
Non-cash advances on interests in loans receivable in lieu of interest | (2,427) | (15,149) |
Non-cash advances on secured financings in lieu of interest | 155 | 15,161 |
Repayment of non-cash advances on loans receivable in lieu of interest | 20,128 | 97,087 |
Repayment of non-cash advances on interests in loans receivable in lieu of interest | 13,178 | 363 |
Repayment of non-cash advances on secured financings in lieu of interest | (22,285) | |
Provision (reversal) of current expected credit loss reserve | 12,984 | (17,413) |
Changes in operating assets and liabilities: | ||
Other assets | (12,981) | (13,356) |
Other liabilities | 8,038 | 8,506 |
Management fee payable - affiliate | 10 | (60) |
Incentive fee payable - affiliate | (187) | |
Net cash provided by operating activities | 91,004 | 144,538 |
Cash flows from investing activities | ||
Deconsolidation of subsidiary | (515) | |
Loan originations, acquisitions and advances, net of fees | (2,394,662) | (1,272,396) |
Advances of interests in loans receivable | (14,653) | (86,022) |
Repayments of loans receivable | 1,458,389 | 1,046,111 |
Repayments of interests in loans receivable | 165,468 | 2,977 |
Proceeds from sale of mortgage loan receivable | 132,151 | |
Extension and exit fees received from loans receivable | 5,963 | 8,066 |
Extension and exit fees received from interests in loans receivable | 502 | |
Cash, cash equivalents and restricted cash from foreclosure of properties | 9,580 | |
Foreclosure of real estate owned | (11,463) | |
Reserves and deposits held for loans receivable | (1,575) | 659 |
Capital expenditures on real estate owned | (1,945) | |
Net cash used in investing activities | (650,877) | (302,488) |
Cash flows from financing activities | ||
Repurchase of common stock | (13,863) | |
Contributions from non-controlling interests | 906 | 1,975 |
Offering costs | (300) | (30) |
Dividends paid on common stock and restricted stock units | (155,871) | (141,792) |
Dividends paid on redeemable common stock | (8,208) | |
Dividends paid on preferred stock | (8) | |
Proceeds from secured financings | 1,927,139 | 1,014,627 |
Payment of financing costs | (16,498) | (14,335) |
Payment of exit fees on secured financings | (443) | |
Repayments of secured financings | (1,247,390) | (849,141) |
Repayments of secured term loan | (5,720) | (5,837) |
Repayments of debt related to real estate owned | (10,000) | |
Net cash provided by (used in) financing activities | 488,403 | (13,192) |
Net increase (decrease) in cash, cash equivalents and restricted cash | (71,470) | (171,142) |
Cash, cash equivalents and restricted cash, beginning of period | 334,136 | 430,974 |
Cash, cash equivalents and restricted cash, end of period | 262,666 | 259,832 |
Cash and cash equivalents, beginning of period | 310,194 | 427,512 |
Restricted cash, beginning of period | 23,942 | 3,462 |
Cash and cash equivalents, end of period | 225,556 | 235,596 |
Restricted cash, end of period | 37,110 | 24,236 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | 141,497 | 121,257 |
Supplemental disclosure of non-cash investing and financing activities: | ||
Dividends accrued | 52,219 | 53,196 |
Loan principal payments held by servicer | 7,651 | 252,946 |
Accrued financing costs | 3,750 | 6,251 |
Accrued offering costs | 2,231 | |
Deposits applied against sale proceeds | 14,761 | |
Deconsolidation of subsidiary: | ||
Loan receivable | 78,507 | |
Other assets | 17 | |
Other liabilities | (130) | |
Management fee payable - affiliate | (65) | |
Net carrying value of deconsolidated subsidiary's net assets | $ 78,329 | |
Working capital consolidated | (18,546) | |
Settlement of loan receivable | 103,901 | |
Real estate acquired in settlement of loan receivable | 414,000 | |
Assumption of debt related to real estate owned | (300,000) | |
Conversion of restricted stock units to common shares - common stock | 6 | |
Conversion of restricted stock units to common shares; additional paid in capital | $ (6) |
Organization
Organization | 9 Months Ended |
Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | Note 1. Organization Claros Mortgage Trust, Inc. (referred to throughout this report as the “Company,” “we”, “us” and “our”) is a Maryland Corporation formed on April 29, 2015 for the purpose of creating a diversified portfolio of income-producing loans collateralized by institutional quality commercial real estate. We commenced operations on August 25, 2015 (“Commencement of Operations”) and generally conduct our business through wholly-owned subsidiaries. Unless the context requires otherwise, any references to the Company refer to the Company and its consolidated subsidiaries. The Company is traded on the New York Stock Exchange, or NYSE, under the symbol “CMTG”. We elected and intend to maintain our qualification to be taxed as a real estate investment trust (“REIT”) under the requirements of the Internal Revenue Code of 1986, as amended (the "Internal Revenue Code"), for U.S. federal income tax purposes. As such, we generally are not subject to U.S. federal income tax on that portion of our income that we distribute to stockholders. See Note 13 – Income Taxes regarding taxes applicable to the Company. We are externally managed by Claros REIT Management LP (the “Manager”), our affiliate, through a management agreement (the "Management Agreement") pursuant to which the Manager provides a management team and other professionals who are responsible for implementing our business strategy, subject to the supervision of our board of directors (the "Board"). In exchange for its services, the Manager is entitled to management fees and incentive fees. See Note 11 – Related Party Transactions regarding the Management Agreement. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2. Summary of Significant Accounting Policies Basis of Presentation and Principles of Consolidation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). References to common stock in 2021 include redeemable common stock. These unaudited consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2021, as filed with the Securities and Exchange Commission. In the opinion of management, all adjustments (consisting only of normal recurring adjustments) necessary for a fair statement of our financial position, results of operations and cash flows have been included. Our results of operations for the three and nine months ended September 30, 2022 are not necessarily indicative of the results to be expected for the full year or any other future period. The consolidated balance sheet at December 31, 2021 was derived from the audited annual financial statements but does not contain all of the footnote disclosures from the annual financial statements. Use of Estimates The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Estimates that are particularly susceptible to our judgment include, but are not limited to, the adequacy of allowance for loan losses, the determination of effective yield for recognition of interest income and interest expense, and impairment of certain assets. The novel coronavirus (“COVID-19”) pandemic has evolved since its onset during the first quarter of 2020, and while the global economy has begun to recover, uncertainty around future developments remain. The ongoing pandemic state has also affected global supply chains, the labor market, and inflation, which continue to impact many industries, including the collateral underlying certain of our loans. In response, the Federal Reserve has begun raising interest rates in 2022 and has indicated that it foresees further interest rate increases through the end of the year. The overall impact to the global economy will depend largely on the recovery of disrupted supply chains and industries, the extent of the labor market interruptions, the result of the Federal Reserves’ policies, and other government interventions. The current and future financial, economic and capital markets environment could remain uneven, and presents uncertainty and risk with respect to the performance of our loans receivable and real estate owned, our financial condition, results of operations, liquidity, and ability to pay dividends. Current Expected Credit Losses The current expected credit loss (“CECL”) reserve required under ASU 2016-13 “Financial Instruments – Credit Losses – Measurement of Credit Losses on Financial Instruments (Topic 326)” (“ASU 2016-13”), reflects our current estimate of potential credit losses related to our loan portfolio. The initial CECL allowance recorded on January 1, 2021 was reflected as a direct charge to retained earnings on our consolidated statements of changes in stockholders’ equity. Subsequent changes to the CECL allowance are recognized through net income on our consolidated statements of operations. ASU 2016-13 specifies the reserve should be based on relevant information about past events, including historical loss experience, current portfolio, market conditions and reasonable and supportable forecasts for the duration of each respective loan. General CECL Allowance Our loans are typically collateralized by real estate, or in the case of mezzanine loans, by an equity interest in an entity that owns real estate. We consider key credit quality indicators in underwriting loans and estimating credit losses, including, but not limited to: the capitalization of borrowers and sponsors; the expertise of the borrowers and sponsors in a particular real estate sector and geographic market; collateral type; geographic region; use and occupancy of the property; property market value; loan-to-value (“LTV”) ratio; loan amount and lien position; our risk rating for the same and similar loans; and prior experience with the borrower and sponsor. This information is used to assess the financial and operating capability, experience and profitability of the borrower/sponsor. Ultimate repayment of our loans is sensitive to interest rate changes, general economic conditions, liquidity, LTV ratio, existence of a liquid investment sales market for commercial properties, and availability of replacement short-term or long-term financing. We regularly evaluate on a loan-by-loan basis, the extent and impact of any credit deterioration associated with the performance and/or value of the underlying collateral property, the financial and operating capability of the borrower/sponsor, the financial strength of loan guarantors, if any, and the overall economic environment, real estate sector, and geographic sub-market in which the borrower operates, at least quarterly. Such analyses are completed and reviewed by asset management personnel and evaluated by senior management, who utilize various data sources, including, to the extent available (i) periodic financial data such as property occupancy, tenant profile, rental rates, operating expenses, the borrower’s exit plan, and capitalization and discount rates, (ii) site inspections, (iii) sales and financing comparables, (iv) current credit spreads for refinancing and (v) other market data. Commencing the third quarter of 2022, we arrived at our general CECL reserve using the Weighted Average Remaining Maturity, or WARM method, which has been identified as an acceptable loss-rate method for estimating CECL reserves by the Financial Accounting Standards Board ("FASB"). The application of the WARM method to estimate a general CECL reserve requires judgment, including the appropriate historical loan loss reference data, the expected timing and amount of future loan fundings and repayments, the current credit quality of our portfolio, and our expectations of performance and market conditions over the relevant time period. The WARM method requires us to reference historical loan loss data from a comparable data set and apply such loss rate to each of our loans over their expected remaining term, taking into consideration expected economic conditions over the forecasted timeframe. Our general CECL reserve reflects our forecast of the current and future macroeconomic conditions that impact the performance of the commercial real estate assets securing our loans and the borrower's ultimate ability to repay. These estimates include unemployment rates, price indices for commercial properties, and market liquidity, all of which may influence the likelihood and magnitude of potential credit losses for our loans during their anticipated term. Additionally, further adjustments may be made based upon loan positions senior to ours, the risk rating of a loan, whether a loan is a construction loan, or the economic conditions specific to the property type of a loan's underlying collateral. To estimate an annual historical loss rate, we obtained historical loss rate data for loans most comparable to our loan portfolio from a commercial mortgage backed securities database licensed by a third party, Trepp LLC, which contains historical loss rates from January 1, 1999 through September 30, 2022. When evaluating the current and future macroeconomic environment, we consider the aforementioned macroeconomic factors. Historical data for each metric is compared to historical commercial real estate loan losses in order to determine the relationship between the two variables. We use projections of each macroeconomic factor, obtained from a third party, to approximate the impact the macroeconomic outlook may have on our loss rate. Selections of these economic forecasts require judgement about future events that, while based on the information available to us as of the balance sheet date, are ultimately unknowable with certainty, and the actual economic conditions could vary significantly from the estimates we made. Following a reasonable and supportable forecast period, we use a straight-line method of reverting to the historical loss rate. Additionally, we assess the obligation to extend credit through our unfunded loan commitments over each loan’s contractual period, which is considered in the estimate of the general CECL reserve. This component of the general CECL reserve will similarly impact our consolidated net income. For both the funded and unfunded portions of our loans, we consider our internal risk rating of each loan as the primary credit quality indicator underlying our assessment. We evaluate the credit quality of each of our loans receivable on an individual basis and assign a risk rating at least quarterly. We have developed a loan grading system for all of our outstanding loans receivable that are collateralized directly or indirectly by real estate. Grading criteria include as-is or as-stabilized debt yield, term of loan, property type, loan type and other more subjective variables that include property or collateral location, as-is or as-stabilized collateral value, market conditions, industry conditions and sponsor’s financial stability. We utilize the grading system to determine each loan’s risk of loss and to provide a determination as to whether an individual loan is impaired and whether a special loan loss allowance is necessary. Based on a 5-point scale, the loans are graded “1” through “5,” from less risk to greater risk, which gradings are defined as follows: 1. Very Low Risk 2. Low Risk 3. Medium Risk 4. High Risk/Potential for Loss: A loan that has a risk of realizing a principal loss 5. Impaired/Loss Likely: A loan that has a very high risk of realizing a principal loss or has otherwise incurred a principal loss Specific CECL Allowance In certain circumstances we may determine that a loan is no longer suited for the WARM method due to its unique risk characteristics, where we have deemed the borrower/sponsor to be experiencing financial difficulty, or because the repayment of the loan’s principal is collateral-dependent. We may instead elect to employ different methods to estimate loan losses that also conform to ASU 2016-13 and related guidance. If the recovery of a loan’s principal balance is entirely collateral-dependent, we may assess such an asset individually and elect to apply a practical expedient in accordance with ASU 2016-13. For such loan we would measure the specific allowance of each loan separately by using the fair value of the collateral or the net present value of its expected future cash flows. If the fair value of the collateral is less than the carrying value of the loan, an asset-specific allowance is created as a component of our overall allowance for loan losses (following the adoption of CECL, or as a loan loss allowance prior to the adoption of CECL). Specific allowances are equal to the excess of a loan’s carrying value to the present value of its expected cash flows discounted at the loan’s effective rate or the fair value of the collateral, less estimated costs to sell, if recovery of our investment is expected solely from the collateral. If we have determined that a loan or a portion of a loan is uncollectible, we will write off the loan through a charge to our current expected credit loss reserve based on the present value of expected future cash flows or the fair value of the collateral less costs to sell, if repayment is expected solely from the collateral. Significant judgment is required in determining impairment and in estimating the resulting credit loss reserve, and actual losses, if any, could materially differ from those estimates. For additional information on our General and Specific CECL Allowance please refer to Note 3—"Loans Portfolio—Current Expected Credit Losses”. Real Estate Owned (and Associated Debt) We may assume legal title or physical possession of the underlying collateral of a defaulted loan through foreclosure. If we intend to hold, operate or develop the property for a period of at least 12 months, the asset is classified as real estate owned, net. If we intend to market a property for sale in the near subsequent term, the asset is classified as real estate held for sale. Real estate owned is initially recorded at estimated fair value and is subsequently presented net of accumulated depreciation. Depreciation is computed using a straight-line method over the estimated useful lives. Real estate assets are evaluated for indicators of impairment on a quarterly basis. Factors that we may consider in our impairment analysis include, among others: (1) significant underperformance relative to historical or anticipated operating results; (2) significant negative industry or economic trends; (3) costs necessary to extend the life or improve the real estate asset; (4) significant increase in competition; and (5) ability to hold and dispose of the real estate asset in the ordinary course of business. A real estate asset is considered impaired when the sum of estimated future undiscounted cash flows expected to be generated by the real estate asset over the estimated remaining holding period is less than the carrying amount of such real estate asset. Cash flows include operating cash flows net of anticipated capital proceeds generated by the real estate asset. If the sum of such estimated cash flows are less than the fair value of the real estate, an impairment charge is recorded equal to the excess of the carrying value of the real estate asset over the fair value. When determining the fair value of a real estate asset, we make certain assumptions including, but not limited to, consideration of projected operating cash flows, comparable selling prices and projected cash flows from the eventual disposition of the real estate asset based upon our estimate of a capitalization rate and discount rate. Debt assumed in an acquisition/foreclosure of real estate is recorded at its estimated fair value at the time of the acquisition. Debt related to real estate owned is non-recourse to us. Equity Method Investment We account for our investments in entities in which we have the ability to influence, but do not have a controlling interest, by using the equity method of accounting. Under the equity method for which we have not elected a fair value option, the investment, originally recorded at cost, is adjusted to recognize our share of earnings or losses as they occur and for additional contributions made or distributions received. We look at the nature of the cash distributions received to determine the proper character of cash flow distributions on the accompanying consolidated statement of cash flows as either returns on investment, which would be included in operating activities, or returns of investment, which would be included in investing activities. At each reporting period we assess whether there are any indicators of impairment of our equity investments. There were no impairments of our equity method investment as of and for the three and nine months ended September 30, 2022 . Derivative Financial Instruments In the normal course of business, we are exposed to the effect of interest rate changes and may undertake a strategy to limit these risks through the use of derivatives. We may use derivatives primarily to reduce the impact that increases in interest rates will have on our floating rate liabilities, which may consist of interest rate swaps, interest rate caps, collars, and floors. We recognize all derivatives on the consolidated balance sheets at fair value within other assets. To determine the fair value of derivative instruments, we use a variety of methods and assumptions that are based on market conditions as of the balance sheet date, such as discounted cash flows and option-pricing models. We have not designated derivatives as hedges to qualify for hedge accounting for financial reporting purposes and fluctuations in the fair value of these derivatives have been recognized currently as unrealized gain on interest rate cap in the accompanying consolidated statements of operations. Other Assets Other assets include interest receivable, miscellaneous receivables, prepaid expenses, deferred tax asset (net of any valuation allowance), deposits funded relating to unclosed transactions, deferred financing costs related to our repurchase agreements and acquisition facility, derivative financial instruments, and repurchased shares not yet settled. Other Liabilities Other liabilities include interest payable, accounts payable and accrued expenses, our general CECL reserve related to our unfunded loan commitments, reserves held for loans receivable, and deposits held. Revenue Recognition Interest income from loans receivable is recorded on the accrual basis based on the outstanding principal amount and the contractual terms of the loans. Recognition of fees, premiums, discounts and direct costs associated with these investments is deferred until the loan is advanced and is then amortized or accreted into interest income over the term of the loan as an adjustment to yield using the effective interest method based on expected cash flows through the expected recovery period. Income accrual may be suspended for loans when we determine that the payment of income and principal is no longer probable. Factors considered when making this determination include our assessment of the underlying collateral value, delinquency in excess of 90 days, and overall market conditions. While on non-accrual status, based on our estimation as to collectability of principal, loans are either accounted for on a cash basis, where interest income is recognized only upon actual receipt of cash, or on a cost-recovery basis, where all cash receipts reduce a loan's carrying value. If and when a loan is brought back into compliance with its contractual terms, and our Manager has determined that the borrower has demonstrated an ability and willingness to continue to make contractually required payments related to the loan, we resume accrual of interest. Revenue from real estate owned represents revenue associated with the operations of hotel properties classified as real estate owned. Revenue from the operations of the hotel properties is recognized when guestrooms are occupied, services have been rendered or fees have been earned. Revenues are recorded net of any discounts and sales and other taxes collected from customers. Revenues consist of room sales, food and beverage sales and other hotel revenues. Reportable Segments We evaluate the operating performance of our investments as a whole. We previously determined that we had two operating segments and one reporting segment as a result of the foreclosure of the hotel portfolio on February 8, 2021. In the first quarter of 2022, we had a change in our Chief Operating Decision Maker (CODM) who determined that we evaluate the operating performance of our investments as a whole and make operating decisions accordingly. Therefore, we have one operating segment and one reporting segment, with activities related to investing in income-producing loans collateralized by institutional quality commercial real estate. This change has been applied retrospectively to all periods presented. Reclassifications Certain prior period amounts in the accompanying consolidated financial statements have been reclassified to conform with the current period presentation. These reclassifications had no effect on the results of operations or financial position for any period presented. Recent Accounting Guidance On March 31, 2022, the FASB issued ASU 2022-02, “Financial Instruments – Credit Losses (Topic 326), Troubled Debt Restructurings and Vintage Disclosures”, (“ASU 2022-02”). The standard eliminates the recognition and measurement guidance for troubled debt restructurings (“TDRs”) for creditors that have adopted ASU 2016-13 Financial Instruments – Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments, ("CECL"). In addition to eliminating the TDR accounting guidance, ASU 2022-02 changes existing disclosure requirements and introduces new disclosures related to certain modifications of instruments with borrowers experiencing financial difficulty. The standard is effective for periods beginning after December 15, 2022, with early adoption permitted. During the second quarter of 2022, we adopted this standard effective January 1, 2022 and the adoption did not have a material impact on our financial statements. The FASB issued ASU 2019-12, Income Taxes (Topic 740), (“ASU 2019-12”). ASU 2019-12 simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. ASU 2019-12 also improves the consistent application of, and simplifies, GAAP for other areas of Topic 740 by clarifying and amending existing guidance. The standard is effective for financial statements issued for fiscal years beginning after December 15, 2021, with early adoption permitted. We adopted ASU 2019-12 on January 1, 2022 and the adoption of ASU 2019-12 did not have a material impact on our consolidated financial statements. The FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, (“ASU 2020-04”). ASU 2020-04 provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions that reference the London Interbank Offering Rate ("LIBOR") or another reference rate expected to be discontinued because of reference rate reform. ASU 2020-04 is effective upon issuance of ASU 2020-04 for contract modifications and hedging relationships on a prospective basis. We have not adopted any of the optional expedients or exceptions through September 30, 2022 , but will continue to evaluate the possible adoption of any such expedients or exceptions during the effective period as circumstances evolve. |
Loans Portfolio
Loans Portfolio | 9 Months Ended |
Sep. 30, 2022 | |
Receivables [Abstract] | |
Loans Portfolio | Note 3. Loans Portfolio Loans Receivable Our loans receivable portfolio as of September 30, 2022 was comprised of the following loans ($ in thousands, except for number of loans): Number of Loan Commitment (4) Unpaid Principal Balance Carrying Weighted Average Spread (2) Weighted Average Interest Rate (3) Loans receivable held-for-investment: Variable: Senior loans (1) 69 $ 8,920,827 $ 7,156,048 $ 7,105,113 + 4.02% 7.10 % Subordinate loans 2 61,500 59,481 59,602 + 11.57% 14.71 % 71 8,982,327 7,215,529 7,164,715 + 4.08% 7.17 % Fixed: Senior loans (1) 4 $ 41,787 $ 39,050 $ 39,049 N/A 7.61 % Subordinate loans 2 125,927 125,927 125,647 N/A 8.49 % 6 167,714 164,977 164,696 8.28 % Total/Weighted Average 77 $ 9,150,041 $ 7,380,506 $ 7,329,411 N/A 7.19 % Current expected credit loss reserve ( 59,188 ) Loans receivable held-for-investment, net $ 7,270,223 (1) Senior loans include senior mortgages and similar loans, including related contiguous subordinate loans (if any), and pari passu participations in senior mortgage loans. (2) The weighted average spread is expressed as a spread over the relevant floating benchmark rates. One-month LIBOR as of September 30, 2022 was 3.14 % . One-month term Secured Overnight Financing Rate ("SOFR") as of September 30, 2022 was 3.04 % . Weighted average is based on outstanding principal as of September 30, 2022 . (3) Reflects the weighted average interest rate based on the applicable floating benchmark rate (if applicable), including LIBOR/SOFR floors (if applicable). Weighted average is based on outstanding principal as of September 30, 2022 and includes loans on non-accrual status. (4) Loan commitment represents principal outstanding plus remaining unfunded loan commitments. Our loans receivable portfolio as of December 31, 2021 was comprised of the following loans ($ in thousands, except for number of loans): Number of Loan Commitment (5) Unpaid Principal Balance Carrying Weighted Average Spread (2) Weighted Average Interest Rate (4) Loans receivable held-for-investment: Variable: Senior loans (1,3) 51 $ 7,163,032 $ 6,119,619 $ 6,085,351 + 4.06% 5.16 % Subordinate loans 3 137,079 133,119 133,552 + 10.38% 11.37 % 54 7,300,111 6,252,738 6,218,903 + 4.19% 5.29 % Fixed: Senior loans (1) 3 $ 62,573 $ 62,573 $ 62,782 N/A 10.09 % Subordinate loans 2 125,927 125,927 125,620 N/A 8.49 % 5 188,500 188,500 188,402 9.02 % Total/Weighted Average 59 $ 7,488,611 $ 6,441,238 $ 6,407,305 N/A 5.40 % Current expected credit loss reserve ( 67,010 ) Loans receivable held-for-investment, net $ 6,340,295 (1) Senior loans include senior mortgages and similar loans, including related contiguous subordinate loans (if any), and pari passu participations in senior mortgage loans. (2) The weighted average spread is expressed as a spread over the relevant floating benchmark rates. One-month LIBOR as of December 31, 2021 was 0.10 %. Weighted average is based on outstanding principal as of December 31, 2021 . (3) Includes a fixed rate loan with an outstanding principal balance of $ 33.5 million and a loan commitment of $ 39.7 million as of December 31, 2021 , which shares the same collateral as floating rate loans with an outstanding principal balance of $ 103.1 million and a loan commitment of $ 104.4 million at December 31, 2021 . (4) Reflects the weighted average interest rate based on the applicable floating benchmark rate (if applicable), including LIBOR floors (if applicable). Weighted average is based on outstanding principal as of December 31, 2021 and includes loans on non-accrual status. (5) Loan commitment represents principal outstanding plus unfunded loan commitments. Certain loans receivable held by us include LIBOR/SOFR floors, which establish the minimum interest rate a borrower may pay on a loan. The weighted average LIBOR/SOFR floor in place based on unpaid principal balance on floating rate loans is 0.85 % as of September 30, 2022. The following table presents the range of LIBOR/SOFR floors held in our loan portfolio as of September 30, 2022 based on outstanding principal ($ in thousands): One-month LIBOR/SOFR Floor Range Unpaid % of Cumulative 2.00 % - 2.50 % $ 782,123 11 % 11 % 1.50 % - 1.99 % 1,569,759 21 % 32 % 1.00 % - 1.49 % 738,591 10 % 42 % 0.50 % - 0.99 % 342,086 5 % 47 % < 0.50 % 3,135,761 42 % 89 % No floor 647,209 9 % 98 % Total Floating Rate Loans 7,215,529 Total Fixed Rate Loans 164,977 2 % 100 % Total Loans $ 7,380,506 The following table presents the carrying value and significant characteristics of our loans receivable on non-accrual status as of September 30, 2022 ($ in thousands): Origination Date Initial Maturity Date Date Through Which Interest Collected Risk Rating Carrying Value Unpaid Principal Balance Specific Net Carrying Value Interest Recognition Method(1) 8/2/2019 10/30/2021 11/1/2021 4 $ 67,000 $ 67,000 $ - $ 67,000 Cash Basis 7/1/2019 12/30/2020 7/1/2020 5 3,500 3,500 - 3,500 Cost Recovery Total non-accrual (2) 70,500 70,500 - 70,500 Carrying value of associated financings $ ( 33,500 ) Net carrying value $ 37,000 (1) No interest income was recognized on these loans for the nine months ended September 30, 2022 . (2) Loans classified as non-accrual represented 1.0 % of the total loan portfolio at September 30, 2022 , based on unpaid principal balance. Excludes two additional loans with an aggregate carrying value of $ 136.8 million that are in maturity default. The following table presents the carrying value and significant characteristics of our loans receivable on non-accrual status as of December 31, 2021 ($ in thousands): Origination Date Initial Maturity Date Date Through Which Interest Collected Risk Rating Carrying Value Unpaid Principal Balance Specific Net Carrying Value Interest Recognition Method 5/5/2017 1/1/2023 12/1/2021 5 $ 11,533 $ 11,533 $ ( 333 ) $ 11,200 Cost Recovery 7/10/2018 12/10/2023 12/1/2021 4 77,530 81,380 - 77,530 Cash Basis Total current 89,063 92,913 ( 333 ) 88,730 8/2/2019 10/30/2021 11/1/2021 4 67,000 67,000 - 67,000 Cash Basis 9/21/2018 10/1/2020 2/1/2020 4 116,211 116,020 - 116,211 Cash Basis 3/29/2018 1/26/2021 7/9/2020 4 76,069 75,579 - 76,069 Cash Basis 7/1/2019 12/30/2020 7/1/2020 5 15,000 15,000 ( 6,000 ) 9,000 Cost Recovery Total delinquent 274,280 273,599 ( 6,000 ) 268,280 Total non-accrual (1) $ 363,343 $ 366,512 $ ( 6,333 ) $ 357,010 Carrying value of associated financings $ ( 122,450 ) Net carrying value $ 234,560 (1) Loans classified as non-accrual and delinquent on debt service represented 4.1 % of the total loan portfolio at December 31, 2021 , based on unpaid principal balance. Activity relating to the loans receivable portfolio for the nine months ended September 30, 2022 ($ in thousands): Unpaid Principal Balance Deferred Fees Specific CECL Allowance Carrying Value (1) Balance at December 31, 2021 $ 6,441,238 $ ( 33,933 ) $ ( 6,333 ) $ 6,400,972 Initial funding of new loan originations and acquisitions 1,996,086 - - 1,996,086 Advances on existing loans 429,901 - - 429,901 Non-cash advances in lieu of interest 50,876 966 - 51,842 Origination fees, extension fees and exit fees - ( 37,288 ) - ( 37,288 ) Repayments of loans receivable ( 1,389,947 ) - - ( 1,389,947 ) Repayments of non-cash advances in lieu of interest ( 20,128 ) - - ( 20,128 ) Accretion of fees - 19,351 - 19,351 Sale proceeds ( 146,912 ) - - ( 146,912 ) Gain (loss) on sale 30,892 ( 191 ) - 30,701 Specific CECL Allowance - - ( 5,205 ) ( 5,205 ) Principal charge-offs ( 11,500 ) - 11,500 - Balance at September 30, 2022 $ 7,380,506 $ ( 51,095 ) $ ( 38 ) $ 7,329,373 General CECL Allowance $ ( 59,150 ) Carrying Value $ 7,270,223 (1) Balance at December 31, 2021 does not include general CECL allowance. In the second quarter of 2022, we sold a senior loan with a carrying value of $ 116.2 million and recognized a realized gain of $ 30.1 million. The financial asset was legally isolated, the transferee has the ability to pledge the assets without constraint and control has been transferred to the transferee. We have determined the transaction constituted a sale. Through CMTG/TT Mortgage REIT LLC ("CMTG/TT"), a previously consolidated joint venture, we held a 51.0 % interest in $ 78.5 million of subordinate loans secured by land in New York, which had been on non-accrual status since October 2021. During the third quarter of 2022, we directly acquired the senior position of the loan of $ 73.5 million and converted the whole loan from a land loan into a construction loan to finance the development of a hotel. The borrower simultaneously committed additional equity to the project. Immediately following the conversion of the loan, we own $ 115.3 million of total loan commitments, of which $ 75.0 million has been funded and is included in loans receivable held-for-investments on our consolidated balance sheet as of September 30, 2022 , as well as 51.0 % of the remaining $ 78.5 million of subordinate loans held through CMTG/TT which is accounted for under the equity method of accounting on our consolidated financial statements. See Note 4 - Equity Method Investment for further detail. The new loans accrue interest at the new contractual rates. In the second quarter of 2022, we modified a loan with a borrower who was experiencing financial difficulties, resulting in a decrease in the index rate floor from 1.57 % to 1.00 % and modified extension requirements. As of September 30, 2022 , the loan had an amortized cost basis of $ 87.8 million and represents approximately 1.21 % of total loans receivable held-for-investment, net. The loan is considered as part of the general CECL allowance. The borrower is current on all contractually obligated payments. Interests in Loans Receivable Held-for-Investment We had no interests in loans receivable as of September 30, 2022. Our interests in loans receivable portfolio as of December 31, 2021 was comprised of the following loan ($ in thousands): Number of Loan Commitment (3) Unpaid Principal Balance Carrying Value Stated Rate (2) Interest Rate (4) Senior loans (1) 1 $ 200,727 $ 161,566 $ 161,864 L + 4.25% 5.50 % Current expected credit loss reserve ( 14 ) Interests in loans receivable held-for-investment, net $ 161,850 (1) Senior loans include senior mortgages and similar loans, including related contiguous subordinate loans (if any), and pari passu participations in senior mortgage loans. (2) One-month LIBOR as of December 31, 2021 was 0.10 % . (3) Loan commitment represents principal outstanding plus unfunded loan commitments. (4) Reflects the interest rate based on the applicable floating benchmark rate (if applicable), including LIBOR/SOFR floors (if applicable). Activity relating to the interests in loans receivable portfolio for the nine months ended September 30, 2022 ($ in thousands): Unpaid Principal Balance Deferred Fees Carrying Value (1) Balance at December 31, 2021 $ 161,566 $ 298 $ 161,864 Advances on existing interests in loans receivable 14,653 - 14,653 Non-cash advances in lieu of interest 2,427 - 2,427 Origination fees, extension fees and exit fees - ( 502 ) ( 502 ) Repayments of interests in loans receivable ( 165,468 ) - ( 165,468 ) Repayment of non-cash advances in lieu of interest ( 13,178 ) - ( 13,178 ) Accretion of origination fees, net - 204 204 Balance at September 30, 2022 $ - $ - $ - (1) Balance at December 31, 2021 does not include general CECL allowance. The following table details overall statistics for our loans receivable and interests in loans receivable portfolio ($ in thousands): Loans Receivable Interests in Loans Receivable September 30, 2022 December 31, 2021 September 30, 2022 December 31, 2021 Weighted average yield to maturity 7.7 % 5.6 % N/A 6.7 % Weighted average term to fully extended maturity 3.5 years 3.3 years N/A 1.6 years Concentration of Risk The following table presents our loans receivable and interests in loans receivable portfolio by loan type, as well as property type and geographic location of the properties collateralizing these loans as of September 30, 2022 and December 31, 2021 ($ in thousands): September 30, 2022 December 31, 2021 Loan Type Carrying Value Percentage Carrying Value Percentage Senior loans (1) $ 7,144,162 97 % $ 6,309,997 96 % Subordinate loans 185,249 3 % 259,172 4 % $ 7,329,411 100 % $ 6,569,169 100 % Current expected credit loss reserve $ ( 59,188 ) $ ( 67,024 ) $ 7,270,223 $ 6,502,145 Property Type Carrying Value Percentage Carrying Value Percentage Office $ 1,064,017 15 % $ 1,113,805 17 % Mixed-use (2) 641,365 9 % 734,613 11 % Hospitality 1,519,301 21 % 1,176,842 18 % Land 441,894 6 % 631,713 10 % Multifamily 3,019,352 41 % 1,986,628 30 % For Sale Condo 466,299 6 % 710,660 11 % Other 177,183 2 % 214,908 3 % $ 7,329,411 100 % $ 6,569,169 100 % Current expected credit loss reserve $ ( 59,188 ) $ ( 67,024 ) $ 7,270,223 $ 6,502,145 Geographic Location Carrying Value Percentage Carrying Value Percentage United States Northeast $ 1,994,376 28 % $ 2,734,550 41 % Mid Atlantic 815,889 11 % 1,235,527 19 % Midwest 454,945 6 % 309,298 5 % Southeast 941,867 13 % 836,904 13 % Southwest 692,144 9 % 269,461 4 % West 2,423,852 33 % 1,156,896 18 % Other 6,338 0 % 26,533 0 % $ 7,329,411 100 % $ 6,569,169 100 % Current expected credit loss reserve $ ( 59,188 ) $ ( 67,024 ) $ 7,270,223 $ 6,502,145 (1) Senior loans include senior mortgages and similar credit quality loans, including related contiguous subordinate loans and pari passu participations in senior mortgage loans. (2) Mixed-use comprises of 5 % office, 2 % retail, 1 % for sale condo, 1 % multifamily, and immaterial hospitality and signage components. Interest Income and Accretion The following table summarizes our interest and accretion income from loans receivable held-for-investment, from interests in loans receivable held-for-investment, and from interest on cash balances, for the three and nine months ended September 30, 2022 and 2021, respectively ($ in thousands): Three Months Ended Nine Months Ended September 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021 Coupon interest $ 116,435 $ 96,913 $ 295,080 $ 294,771 Interest on cash and cash equivalents 1,229 2 1,572 29 Accretion of fees 8,856 6,961 19,555 19,526 Total interest and related income (1) $ 126,520 $ 103,876 $ 316,207 $ 314,326 (1) We recognized $ 3.6 million and $ 4.5 million in pre-payment penalties and accelerated fees during the three and nine months ended September 30, 2022, respectively. We recognized $ 1.0 million and $ 2.1 million in pre-payment penalties and accelerated fees during the three and nine months ended September 30, 2021 . Loan Risk Ratings As further described in Note 2 – Summary of Significant Accounting Policies, we evaluate the credit quality of our loan portfolio on a quarterly basis. In conjunction with our quarterly loan portfolio review, we assess the risk factors of each loan and assign a risk rating based on several factors. Factors considered in the assessment include, but are not limited to, current loan-to-value, debt yield, structure, cash flow volatility, exit plan, current market environment and sponsorship level. Loans are rated “1” (less risk) through “5” (greater risk), which ratings are defined in Note 2 – Summary of Significant Accounting Policies. The following tables allocate the principal balance and carrying value of the loans receivable and interests in loans receivable based on our internal risk ratings ($ in thousands): September 30, 2022 Risk Rating Number of Loans Unpaid Principal Balance Carrying Value % of Total of Unpaid Principal Balance 1 0 $ - $ - 0 % 2 1 927 907 0 % 3 67 6,558,513 6,510,965 89 % 4 7 814,728 811,201 11 % 5 2 6,338 6,338 0 % 77 $ 7,380,506 $ 7,329,411 Current expected credit loss reserve ( 59,188 ) $ 7,270,223 December 31, 2021 Risk Rating Number of Loans Unpaid Principal Balance Carrying Value % of Total of Unpaid Principal Balance 1 1 $ 35,721 $ 35,699 1 % 2 6 705,886 703,714 10 % 3 42 4,678,785 4,649,076 71 % 4 9 1,155,879 1,154,147 18 % 5 2 26,533 26,533 0 % 60 $ 6,602,804 $ 6,569,169 Current expected credit loss reserve ( 67,024 ) $ 6,502,145 As of September 30, 2022 and December 31, 2021 , the average risk rating of our portfolio was 3.1 and 3.1 , respectively, weighted by unpaid principal balance. Current Expected Credit Losses The current expected credit loss reserve required under GAAP reflects our current estimate of potential credit losses related to loans receivable, interests in loans receivable, accrued interest receivable and unfunded loan commitments. See Note 2 for further discussion of our allowance for loan losses. During the nine months ended September 30, 2022 , we recorded a principal charge-off of $ 11.5 million against a loan made to the personal estate of a former borrower. Prior to the charge-off, the loan had an unpaid principal balance $ 15.0 million and a specific CECL reserve of $ 6.0 million, resulting in a carrying value of $ 9.0 million. Following the charge-off, the loan's carrying value is $ 3.5 million, which represents estimated collection. The loan is on non-accrual status and is in maturity default. In December of 2021, we received principal repayments of $ 81.7 million on a senior loan with an outstanding principal balance of $ 95.0 million, and a maturity date of May 31, 2021, and recorded a principal charge-off of $ 1.8 million. Following the repayment, the maturity date of the loan was extended to January 1, 2023. As of September 30, 2022 and December 31, 2021 , the loan had a specific loan loss allowance of $ 38,000 and $ 0.3 million, respectively, which represents additional collectible interest through the maturity date. Subsequent to September 30, 2022, this loan was repaid in full. During the three months ended September 30, 2022 , we recorded a net provision of $ 2.4 million in the allowance for credit losses. The total allowance for loan losses increased to $ 75.0 million as of September 30, 2022. The increase was primarily attributable to the increase in the size of our loan portfolio and changes in macroeconomic conditions. The following table illustrates the quarterly changes in the current expected credit loss reserve for the nine months ended September 30, 2022 and 2021, respectively ($ in thousands): General CECL Allowance Specific CECL Allowance (1) Loans Receivable Held-for-Investment Interests in Loans Receivable Held-for-Investment Accrued Interest Receivable Unfunded Loan Commitments (2) Total Total current expected credit loss $ 6,000 $ - $ - $ - $ - $ 6,000 Initial CECL allowance, January 1, - 64,274 406 357 13,214 78,251 Increase (reversal) in current credit - 1,547 ( 141 ) ( 14 ) ( 1,577 ) ( 185 ) Total current expected credit loss $ 6,000 $ 65,821 $ 265 $ 343 $ 11,637 $ 84,066 Increase (reversal) in current credit 500 ( 3,954 ) 270 ( 33 ) ( 4,705 ) ( 7,922 ) Total current expected credit loss $ 6,500 $ 61,867 $ 535 $ 310 $ 6,932 $ 76,144 Increase (reversal) in current credit 2,000 ( 11,154 ) ( 306 ) ( 64 ) 218 ( 9,306 ) Total current expected credit loss $ 8,500 $ 50,713 $ 229 $ 246 $ 7,150 $ 66,838 Total current expected credit loss $ 6,333 $ 60,677 $ 14 $ 218 $ 6,286 $ 73,528 Increase (reversal) in current credit ( 133 ) ( 1,269 ) 28 ( 218 ) 3,694 2,102 Total current expected credit loss $ 6,200 $ 59,408 $ 42 $ - $ 9,980 $ 75,630 Principal charge-offs ( 11,500 ) - - - - ( 11,500 ) Increase (reversal) in current credit 5,405 ( 113 ) ( 42 ) - 3,280 8,530 Total current expected credit loss $ 105 $ 59,295 $ - $ - $ 13,260 $ 72,660 Increase (reversal) in current credit ( 67 ) ( 145 ) - - 2,564 2,352 Total current expected credit loss $ 38 $ 59,150 $ - $ - $ 15,824 $ 75,012 Percent of Unpaid Principal Balance at September 30, 2022 1.0 % (1) As of December 31, 2020 , amounts represent specific loan loss provisions recorded on assets before the adoption of ASU 2016-13. After the adoption of ASU 2016-13 on January 1, 2021, amounts represent specific CECL allowance. (2) The CECL allowance for unfunded commitments is included in other liabilities on the consolidated balance sheets. Our primary credit quality indicator is our internal risk ratings, which are further discussed above. The following table presents the amortized cost basis of our loans receivable as of September 30, 2022 by year of origination and risk rating ($ in thousands): Amortized Cost Basis by Origination Year Risk Rating Number of Loans Amortized Cost Basis 2022 2021 2020 2019 2018 2017 1 0 $ - $ - $ - $ - $ - $ - $ - 2 1 907 - - - - 907 - 3 67 6,510,965 2,019,264 1,853,294 91,736 1,649,447 799,735 97,489 4 7 811,201 - - 199,660 224,903 386,638 - 5 2 17,838 - - - 15,000 - 2,838 Charge-offs ( 11,500 ) - - - ( 11,500 ) - - 77 $ 7,329,411 $ 2,019,264 $ 1,853,294 $ 291,396 $ 1,877,850 $ 1,187,280 $ 100,327 |
Equity Method Investment
Equity Method Investment | 9 Months Ended |
Sep. 30, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investment | Note 4. Equity Method Investment On June 8, 2016, we acquired a 51 % interest in CMTG/TT upon commencement of its operations. During its active investment period, CMTG/TT originated loans collateralized by institutional quality commercial real estate. CMTG/TT has been consolidated in our financial statements from its inception through July 31, 2022. On August 1, 2022, the sole remaining loan held by this joint venture was converted to a new construction loan. In connection with the conversion, we amended the operating agreement of CMTG/TT. Effective August 1, 2022, we are not deemed to be the primary beneficiary of CMTG/TT in accordance with ASC 810 and do not consolidate the joint venture. We did not recognize a gain or loss as this transaction occured simultaneously with the conversion of the aforementioned loan, and thus there was no change in the underyling value of our 51 % equity interest in CMTG/TT. See Note 3 for further details. As of September 30, 2022 , the carrying value of our 51 % equity interest in CMTG/TT approximated $ 40.7 million. |
Real Estate Owned, Net
Real Estate Owned, Net | 9 Months Ended |
Sep. 30, 2022 | |
Real Estate Owned, Disclosure of Detailed Components [Abstract] | |
Real Estate Owned, Net | Note 5. Real Estate Owned, Net On February 8, 2021, we acquired legal title to a portfolio of hotel properties located in New York, NY through a foreclosure. Prior to February 8, 2021, the hotel portfolio represented the collateral for a $ 103.9 million mezzanine loan held by us. The loan was in default as a result of the borrower failing to pay debt service. A $ 300.0 million securitized senior mortgage held by a third party was in default as well. The securitized senior mortgage is non-recourse to us. We recorded a gain of $ 1.4 million resulting from the foreclosure of the loan, which was based upon the estimated fair value of the hotel properties as determined by a third-party appraisal. The fair value of $ 414.0 million was determined using discount rates ranging from 8.50 % to 8.75 % and a terminal capitalization rate of 6.00 %. On June 2, 2021, terms of the securitized senior mortgage were modified to include an extension of the maturity date to February 9, 2024 , a principal repayment of $ 10.0 million, and the payment of $ 7.6 million of fees and modification costs, which included among other items, $ 6.3 million of interest, $ 1.1 million of general and administrative expenses, and $ 0.2 million of debt issuance costs. The following table presents additional detail related to our real estate owned, net as of September 30, 2022 and December 31, 2021 ($ in thousands): September 30, 2022 December 31, 2021 Land $ 123,100 $ 123,100 Building 284,400 284,400 Capital improvements 1,945 - Furniture, fixtures and equipment 6,500 6,500 Real estate assets 415,945 414,000 Less: accumulated depreciation ( 13,115 ) ( 7,113 ) Real estate owned, net $ 402,830 $ 406,887 |
Repurchase Agreements, Loan Par
Repurchase Agreements, Loan Participations Sold, Net, Notes Payable, Net, Secured Term Loan, Net, Debt Related to Real Estate Owned, Net, and Acquisition Facility | 9 Months Ended |
Sep. 30, 2022 | |
Securities Loaned and Securities Sold under Agreement to Repurchase, Gross Including Not Subject to Master Netting Arrangement [Abstract] | |
Repurchase Agreements, Loan Participations Sold, Net, Notes Payable, Net, Secured Term Loan, Net, Debt Related to Real Estate Owned, Net, and Acquisition Facility | Note 6. Repurchase Agreements, Loan Participations Sold, Net, Notes Payable, Net, Secured Term Loan, Net, Debt Related to Real Estate Owned, Net, and Acquisition Facility As of September 30, 2022 and December 31, 2021, we financed certain of our loans receivables using repurchase agreements, the sale of loan participations, and notes payable. The financings bear interest at a rate equal to LIBOR/SOFR plus a credit spread or at a fixed rate. Financing agreements generally contain covenants that include certain financial requirements, including maintenance of minimum liquidity, minimum tangible net worth, maximum debt to tangible net worth ratio, and minimum debt service coverage ratio as defined in agreements. As of September 30, 2022 and December 31, 2021, we are in compliance with all covenants under our financing agreements. The following table summarizes our portfolio financings as of September 30, 2022 and December 31, 2021 ($ in thousands): September 30, 2022 December 31, 2021 Capacity Borrowing Outstanding Weighted (1) Capacity Borrowing Outstanding Weighted (1) Repurchase agreements $ 4,700,000 $ 3,781,687 + 2.16 % $ 4,065,000 $ 3,274,508 + 2.00 % Repurchase agreements - Side Car 271,171 212,033 + 4.51 % 271,171 215,003 + 4.50 % Loan participations sold 264,252 264,252 + 3.77 % 168,322 168,322 + 3.79 % Notes payable 383,898 127,764 + 3.09 % 48,000 48,000 + 4.00 % Secured Term Loan 756,997 756,997 + 4.50 % 762,717 762,717 + 4.50 % Debt related to real estate owned 290,000 290,000 + 2.78 % 290,000 290,000 + 2.78 % Total / weighted average $ 6,666,318 $ 5,432,733 + 2.71 % $ 5,605,210 $ 4,758,550 + 2.65 % (1) Weighted average spread over the applicable benchmark rate is based on unpaid principal balance. One-month LIBOR as of September 30, 2022 was 3.14 % . One-month term SOFR at September 30, 2022 was 3.04 % . Repurchase Agreements The following table summarizes our repurchase agreements by lender as of September 30, 2022 ($ in thousands): Lender Initial Fully (1) Maximum Borrowing Undrawn JP Morgan Chase Bank, N.A. - Main Pool 6/29/2025 6/29/2027 $ 1,500,000 $ 1,235,227 $ 264,773 JP Morgan Chase Bank, N.A. - Side Car 5/27/2023 5/27/2024 271,171 212,033 59,138 Morgan Stanley Bank, N.A. 1/26/2023 1/26/2025 1,000,000 875,493 124,507 Goldman Sachs Bank USA 5/31/2023 5/31/2025 500,000 393,398 106,602 Wells Fargo Bank, N.A. 9/29/2023 9/29/2026 800,000 745,603 54,397 Barclays Bank PLC 12/20/2022 12/20/2025 500,000 186,383 313,617 Deutsche Bank AG, New York Branch (2) 6/26/2023 6/26/2026 400,000 345,583 54,417 Total $ 4,971,171 $ 3,993,720 $ 977,451 (1) Facility maturity dates may be extended based on certain conditions being met. (2) On August 17, 2022, this facility's capacity was increased to $ 400 million, the reference rate was changed from LIBOR to SOFR, and the fully extended maturity was extended to June 26, 2026 . The following table summarizes our repurchase agreements by lender as of December 31, 2021 ($ in thousands): Lender Initial Fully (1) Maximum Borrowing Undrawn JP Morgan Chase Bank, N.A. - Main Pool (2) 6/29/2025 6/29/2027 $ 1,250,000 $ 1,173,280 $ 76,720 JP Morgan Chase Bank, N.A. - Side Car 5/27/2023 5/27/2024 271,171 215,003 56,168 Morgan Stanley Bank, N.A. (3) 1/26/2023 1/26/2024 1,000,000 1,000,000 - Goldman Sachs Bank USA 5/31/2022 5/31/2023 750,000 410,551 339,449 Barclays Bank PLC 12/20/2022 12/20/2025 500,000 193,884 306,116 Deutsche Bank AG, New York Branch 6/26/2022 6/26/2023 265,000 211,372 53,628 Wells Fargo Bank, N.A. 9/29/2023 9/29/2026 300,000 285,421 14,579 Total $ 4,336,171 $ 3,489,511 $ 846,660 (1) Facility maturity dates may be extended based on certain conditions being met. (2) On January 14, 2022, this facility's capacity was increased to $ 1.5 billion. (3) On January 25, 2022, the reference rate on this facility was changed from LIBOR to SOFR, and the fully extended maturity was extended to January 26, 2025. Liabilities under our repurchase agreements as of September 30, 2022 are summarized as follows ($ in thousands): Lender Weighted (1) Borrowing Outstanding Carrying Carrying JP Morgan Chase Bank, N.A. - Main Pool 2.2 $ 1,235,227 $ 1,235,227 $ 1,738,886 JP Morgan Chase Bank, N.A. - Side Car 0.5 212,033 212,033 456,176 Morgan Stanley Bank, N.A. 1.9 875,493 875,493 1,345,991 Goldman Sachs Bank USA 1.0 393,398 393,398 594,591 Wells Fargo Bank, N.A. 2.4 745,603 745,603 949,591 Barclays Bank PLC 1.2 186,383 186,383 287,009 Deutsche Bank AG, New York Branch 2.0 345,583 345,583 559,846 Total/Weighted Average 1.9 $ 3,993,720 $ 3,993,720 $ 5,932,090 (1) The weighted average term (years) is determined based on the contractual initial maturity date of the corresponding loans collateralizing each facility. Weighted average is based on borrowing outstanding as of September 30, 2022 . Liabilities under our repurchase agreements as of December 31, 2021 are summarized as follows ($ in thousands): Lender Weighted (1) Borrowing Outstanding Carrying Carrying JP Morgan Chase Bank, N.A. - Main Pool 1.6 $ 1,173,280 $ 1,173,280 $ 1,626,719 JP Morgan Chase Bank, N.A. - Side Car 0.9 215,003 215,003 436,325 Morgan Stanley Bank, N.A. 2.4 1,000,000 1,000,000 1,709,758 Goldman Sachs Bank USA 1.3 410,551 410,551 589,825 Barclays Bank PLC 1.4 193,884 193,884 283,716 Deutsche Bank AG, New York Branch 2.3 211,372 211,372 327,671 Wells Fargo Bank, N.A. 2.8 285,421 285,421 362,742 Total/Weighted Average 1.9 $ 3,489,511 $ 3,489,511 $ 5,336,756 (1) The weighted average term (years) is determined based on the contractual initial maturity date of the corresponding loans collateralizing each facility. Weighted average is based on borrowing outstanding as of December 31, 2021 . The repurchase facilities are partially recourse to us. The maximum guarantees under our repurchase agreements range from 25 % to 50 % of borrowings outstanding. Loan Participations Sold Our loan participations sold as of September 30, 2022 are summarized as follows ($ in thousands): Contractual Maximum Borrowing Outstanding Carrying Carrying (1) 8/1/2023 8/1/2023 $ 138,322 $ 138,322 $ 280,983 10/18/2023 10/18/2024 105,930 105,559 192,282 12/31/2024 12/31/2025 20,000 19,775 149,628 Total $ 264,252 $ 263,656 $ 622,893 (1) Includes cash reserve balances. Our loan participations sold as of December 31, 2021 are summarized as follows ($ in thousands): Contractual Maximum Borrowing Outstanding Carrying Carrying 8/1/2022 8/1/2023 $ 148,322 $ 148,133 $ 290,783 12/31/2024 12/31/2025 20,000 19,611 130,061 Total $ 168,322 $ 167,744 $ 420,844 Notes Payable Our notes payable as of September 30, 2022 are summarized as follows ($ in thousands): Contractual Maximum Borrowing Outstanding Carrying Carrying 12/31/2024 12/31/2025 $ 103,592 $ 102,327 $ 149,628 6/30/2025 6/30/2026 4,777 4,348 7,137 2/2/2026 2/2/2027 19,395 18,400 23,225 9/2/2026 9/2/2027 - ( 1,234 ) ( 1,763 ) Total $ 127,764 $ 123,841 $ 178,227 Our notes payable as of December 31, 2021 are summarized as follows ($ in thousands): Contractual Maximum Borrowing Outstanding Carrying Carrying (1) 1/4/2022 (2) 1/4/2022 $ 48,000 $ 48,000 $ 116,512 (1) Includes all reserve balances held by servicer. (2) In January 2022, the initial maturity was extended to July 5, 2022 and the maximum maturity date was extended to January 4, 2023. Secured Term Loan, Net On August 9, 2019, we entered into a $ 450.0 million secured term loan. On December 1, 2020, the secured term loan was modified to increase the aggregate principal amount by $ 325.0 million, increase the interest rate, and to increase the quarterly amortization payment. On December 2, 2021, we entered into a modification of our secured term loan which reduced the interest rate to the greater of (i) one-month term SOFR plus a 0.10 % credit spread adjustment, and (ii) 0.50 %, plus a credit spread of 4.50 %. The secured term loan as of September 30, 2022 is summarized as follows ($ in thousands): Contractual Stated Borrowing Maturity Date Rate (1) Interest Rate Outstanding Carrying Value 8/9/2026 S + 4.50% 7.64 % $ 756,997 $ 737,516 (1) One-month term SOFR at September 30, 2022 was 3.04 % . The secured term loan as of December 31, 2021 is summarized as follows ($ in thousands): Contractual Stated Borrowing Maturity Date Rate (1) Interest Rate Outstanding Carrying Value 8/9/2026 S + 4.50% 5.00 % $ 762,717 $ 739,762 (1) One-month term SOFR at December 31, 2021 was 0.05 % . The secured term loan is partially amortizing, with principal payments of $ 1.9 million due in quarterly installments. Debt Related to Real Estate Owned, Net On February 8, 2021 we assumed a $ 300.0 million securitized senior mortgage in connection with a UCC foreclosure on a portfolio of seven limited service hotels. On June 2, 2021, we entered into an agreement to amend the terms of the securitized senior mortgage which included an extension of the maturity date to February 9, 2024 , a principal repayment of $ 10.0 million, and the payment of $ 7.6 million of fees and modification costs, which included among other items, $ 6.3 million of interest expense, $ 1.1 million of general and administrative expenses, and $ 0.2 million of debt issuance costs. Our debt related to real estate owned as of September 30, 2022 is summarized as follows ($ in thousands): Contractual Stated Borrowing Maturity Date Rate (1) Interest Rate Outstanding Carrying Value February 9, 2024 L + 2.78% 5.78 % $ 290,000 $ 289,258 (1) One-month LIBOR at September 30, 2022 was 3.14 % , which exceeded the 3.00 % ceiling provided by our interest rate cap. See Note 7 - Derivatives for further detail of our interest rate cap. Our debt related to real estate owned as of December 31, 2021 is summarized as follows ($ in thousands): Contractual Stated Borrowing Maturity Date Rate (1) Interest Rate Outstanding Carrying Value February 9, 2024 L + 2.78% 3.53 % $ 290,000 $ 289,806 (1) One-month LIBOR at December 31, 2021 was 0.10 % . Acquisition Facility On June 29, 2022, we entered into a $ 150.0 million full recourse credit facility. The facility generally provides interim financing for eligible loans for up to 180 days at an initial advance rate of 75 %, which begins to decline after the 90th day. The facility matures on June 29, 2025 and earns interest at a rate of one-month term SOFR, plus a 0.10 % credit spread adjustment, plus a spread of 2.25 %. With the consent of our lenders, and subject to certain conditions, the commitment of the facility may be increased up to $ 500.0 million. As of September 30, 2022 , the outstanding balance of the facility is $ 0 . Interest Expense and Amortization The following table summarizes our interest and amortization expense on secured financings, debt related to real estate owned and on the secured term loan for the three and nine months ended September 30, 2022 and 2021, respectively ($ in thousands): Three Months Ended Nine Months Ended September 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021 Interest on secured financings $ 49,893 $ 28,401 $ 107,051 $ 86,990 Interest on secured term loan 13,052 11,749 32,910 34,954 Interest on debt related to real estate owned (1) 3,903 2,640 9,206 13,001 Amortization of financing costs 5,040 5,280 14,475 16,243 Total interest and related expense $ 71,888 $ 48,070 $ 163,642 $ 151,188 (1) Interest on debt related to real estate owned includes $ 131,000 and $ 22,000 of amortization of financing costs for the three months ended September 30, 2022 and 2021 , respectively. Interest on debt related to real estate owned includes $ 176,000 and $ 34,000 of amortization of financing costs for the nine months ended September 30, 2022 and 2021 , respectively. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 8. Fair Value Measurements ASC 820, “Fair Value Measurement and Disclosures” establishes a framework for measuring fair value as well as disclosures about fair value measurements. It emphasizes that fair value is a market-based measurement, not an entity-specific measurement. Therefore, a fair value measurement should be determined based on the assumptions that market participants would use when pricing an asset or liability. As a basis for considering market participant assumptions in fair value measurements, the standards establish a fair value hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity (observable inputs that are classified within Levels 1 and 2 of the hierarchy) and the reporting entity’s own assumptions about market participant assumptions (unobservable inputs classified within Level 3 of the hierarchy). Level 1 inputs utilize unadjusted quoted prices in active markets for identical assets or liabilities that we have the ability to access. Level 2 inputs are inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs may include quoted prices for similar assets and liabilities in active markets, as well as inputs that are observable for the asset or liability other than quoted prices, such as interest rates, foreign exchange rates, and yield curves that are observable at commonly quoted intervals. Level 3 inputs are unobservable inputs for the asset or liability which are typically based on an entity’s own assumptions, as there is little, if any, related market activity. In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement fall is based on the lowest level input that is significant to the fair value measurement in its entirety. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. Financial Instruments Reported at Fair Value The fair value of our interest rate cap is determined by using the market standard methodology of discounting the future expected cash receipts that would occur if variable interest rates rise above the strike rate of the interest rate cap. The variable interest rates used in the calculation of projected receipts on the interest rate cap are based on a third-party expert's expectation of future interest rates derived from observable market interest rate curves and volatilities. Our interest rate cap is classified as Level 2 in the fair value hierarchy and is valued at $ 5.6 million at September 30, 2022 and $ 0 at December 31, 2021. Financial Instruments Not Reported at Fair Value The carrying value and estimated fair value of financial instruments not recorded at fair value on a recurring basis but required to be disclosed at fair value were as follows ($ in thousands): September 30, 2022 Fair Value Hierarchy Level Carrying Unpaid Principal Balance Fair Value Level 1 Level 2 Level 3 Loans receivable held-for-investment, net $ 7,270,223 $ 7,380,506 $ 7,244,522 $ - $ - $ 7,244,522 Repurchase agreements 3,993,720 3,993,720 3,993,720 - - 3,993,720 Loan participations sold, net 263,656 264,252 260,619 - - 260,619 Notes payable, net 123,841 127,764 126,820 - - 126,820 Secured term loan, net 737,516 756,997 724,825 - - 724,825 Debt related to real estate owned, net 289,258 290,000 280,040 - - 280,040 December 31, 2021 Fair Value Hierarchy Level Carrying Unpaid Principal Balance Fair Value Level 1 Level 2 Level 3 Loans receivable held-for-investment, net $ 6,340,295 $ 6,441,238 $ 6,434,157 $ - $ - $ 6,434,157 Interests in loans receivable held-for- 161,850 161,566 161,883 - - 161,883 Repurchase agreements 3,489,511 3,489,511 3,484,834 - - 3,484,834 Loan participations sold, net 167,744 168,322 168,738 - - 168,738 Notes payable, net 48,000 48,000 48,000 - - 48,000 Secured term loan, net 739,762 762,717 762,717 - - 762,717 Debt related to real estate owned, net 289,806 290,000 281,723 - - 281,723 |
Derivatives
Derivatives | 9 Months Ended |
Sep. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | Note 7. Derivatives As part of the agreement to amend the terms of our debt related to real estate owned on June 2, 2021, we acquired an interest rate cap with a notional amount of $ 290.0 million and a maturity date of February 15, 2024 for $ 275,000 . The interest rate cap effectively limits the maximum interest rate of our debt related to real estate owned to 5.78 %. Increases or decreases in the fair value of our interest rate cap are recorded as an unrealized gain or loss on interest rate cap on our consolidated income statements and the fair value is recorded in other assets on our consolidated balance sheets. The fair value of the interest rate cap is $ 5.6 million at September 30, 2022 . |
Equity
Equity | 9 Months Ended |
Sep. 30, 2022 | |
Equity [Abstract] | |
Equity | Note 9. Equity Common Stock Our charter provides for the issuance of up to 500,000,000 shares of common stock with a par value of $ 0.01 per share. We had 140,055,714 common shares issued and 138,970,498 and 139,840,088 common shares outstanding as of September 30, 2022 and December 31, 2021, respectively. The following table provides a summary of the number of common shares outstanding during the nine months ended September 30, 2022 and 2021, respectively, including redeemable common stock: Nine Months Ended Common Stock Outstanding September 30, 2022 September 30, 2021 Beginning balance 139,840,088 132,848,720 Conversion of fully vested restricted stock units to common shares - 584,767 Repurchase of common shares ( 869,590 ) - Ending balance 138,970,498 133,433,487 Repurchased Shares We entered into an agreement (the “10b5-1 Purchase Plan”) with Morgan Stanley & Co. LLC, pursuant to which Morgan Stanley & Co. LLC, as our agent, will buy in the open market up to $ 25.0 million of our common stock in the aggregate during the period beginning on December 6, 2021 and ending at the earlier of 12 months and the date on which all the capital committed to the 10b5-1 Purchase Plan is expended. The 10b5-1 Purchase Plan will require Morgan Stanley & Co. LLC to purchase shares of our common stock on our behalf when the market price per share is below the book value per common share, subject to certain daily limits prescribed by the 10b5-1 Purchase Plan. For the period from December 6, 2021 through September 30, 2022 , we repurchased 1,085,216 shares of common stock under the repurchase program at an average price per share of $ 16.09 for a total of $ 17.5 million. Dividends The following table details our dividend activity for common and preferred stock ($ in thousands, except per share data): For the Quarter Ended March 31, 2022 June 30, 2022 September 30, 2022 Amount Per Share Amount Per Share Amount Per Share Dividends declared - common stock $ 51,672 $ 0.37 $ 51,659 $ 0.37 $ 51,419 $ 0.37 Record Date - common stock March 31, 2022 June 30, 2022 September 30, 2022 Payment Date - common stock April 15, 2022 July 15, 2022 October 14, 2022 For the Quarter Ended March 31, 2021 June 30, 2021 September 30, 2021 Amount Per Share Amount Per Share Amount Per Share Dividends declared - common stock $ 50,000 $ 0.37 $ 50,000 $ 0.37 $ 50,000 $ 0.37 Dividends declared - preferred stock (1) $ 4 $ 0.03 $ 4 $ 0.03 $ 4 $ 0.03 Record Date - common stock March 19, 2021 June 16, 2021 September 17, 2021 Payment Date - common stock April 1, 2021 July 7, 2021 October 7, 2021 Includes 125 preferred units issued at a price of $ 1,000 per unit and entitled to a 12.50 % dividend paid semi-annually that were redeemed on December 15, 2021 at a price of $ 1,000 per unit. |
Earnings per Share
Earnings per Share | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Note 10. Earnings Per Share We calculate basic earnings per share (“EPS”) using the two-class method, which defines unvested share-based payment awards that contain nonforfeitable rights to dividends as participating securities. Under the two-class method, earnings (distributed and undistributed) are allocated to common stock and participating securities based on their respective rights. Basic EPS is calculated by dividing our net income attributable to common stockholders minus participating securities' share in earnings by the weighted average number of shares of common stock outstanding during each period. Diluted EPS is calculated under the more dilutive of the treasury stock or the two-class method. Under the treasury stock method, diluted EPS is calculated by dividing net income attributable to common stockholders by the weighted average number of shares of common stock outstanding plus the incremental potential shares of common stock assumed issued during the period if they are dilutive. As of September 30, 2022 and 2021 , we had no dilutive securities. As a result, basic and diluted EPS are the same. The calculation of basic and diluted EPS is as follows ($ in thousands, except for share and per share data): Three Months Ended Nine Months Ended September 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021 Net income attributable to common stockholders $ 42,071 $ 52,877 $ 134,717 $ 153,506 Dividends on participating securities ( 799 ) - ( 1,598 ) - Participating securities' share in earnings - - - - Basic earnings $ 41,272 $ 52,877 $ 133,119 $ 153,506 Weighted average number of common stock, basic and diluted 139,430,153 133,433,487 139,592,500 133,491,390 Net income per share of common stock, basic and diluted $ 0.30 $ 0.40 $ 0.95 $ 1.15 For the nine months ended September 30, 2022 and 2021 , 863,524 and 0 weighted average unvested restricted stock units ("RSUs"), respectively, were excluded from the calculation of diluted EPS because the effect was anti-dilutive. For the three months ended September 30, 2022 and 2021 , 2,159,280 and 0 weighted average unvested RSUs, respectively, were excluded from the calculation of diluted EPS because the effect was anti-dilutive. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 11. Related Party Transactions The activities of the Company are managed by the Manager. Pursuant to the terms of the Management Agreement, the Manager is responsible for originating investment opportunities, providing asset management services and administering the day-to-day operations of the Company. The Management Agreement will remain in-place until August 25, 2025 unless terminated at an earlier date upon the occurrence of certain events. The Manager is entitled to receive a management fee, an incentive fee and a termination fee as defined below. The following table summarizes our management fees ($ in thousands): Three Months Ended Nine Months Ended September 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021 Management fees $ 9,944 $ 9,789 $ 29,594 $ 29,152 Total $ 9,944 $ 9,789 $ 29,594 $ 29,152 Management Fees Effective October 1, 2015, the Manager earns a base management fee in an amount equal to 1.50 % per annum of Stockholders’ Equity. Management fees are reduced by our pro rata share of any management fees and incentive fees (if incentive fees are not incurred by us) paid to the Manager by CMTG/TT. Management fees are paid quarterly, in arrears. Management fees of $ 9.9 million and $ 10.0 million were accrued and were included in management fee payable – affiliate, in the consolidated balance sheets at September 30, 2022 and December 31, 2021. On August 2, 2022 our Management Agreement was amended and restated, primarily to provide for reimbursement of allocable costs, including compensation of the Manager’s non-investment professionals, to provide for automatic one-year renewals of the agreement following its original expiration date, unless it is otherwise terminated by our Board, and to remove historical provisions that are no longer relevant to our business and certain reporting requirements that are not customary for a public company. Incentive Fees The Manager is entitled to an incentive fee equal to 20 % of the excess of our Core Earnings on a rolling four-quarter basis, as defined in the Management Agreement, over a 7.00 % return on Stockholders’ Equity, as defined in the Management Agreement of the Company. Incentive fees are reduced by our pro rata share of any incentive fees paid to the Manager by CMTG/TT. The Manager is entitled to an incentive fee equal to 3.33 % of the excess of CMTG/TT’s Core Earnings on a rolling four-quarter basis, as defined in the Management Agreement, over a 7.00 % return on Unitholders’ Equity of CMTG/TT. There were no accrued incentive fees on the consolidated balance sheets at September 30, 2022 and December 31, 2021, respectively. Termination Fees If we elect to terminate the Management Agreement, we are required to pay the Manager a termination fee equal to three times the sum of the average total annual amount of management fees and the average annual incentive fee paid by us over the prior two years. Reimbursable Expenses The Manager or its affiliates are entitled to reimbursement for certain documented costs and expenses incurred by them on our behalf, as set forth in the Management Agreement, excluding any expenses specifically required to be borne by the Manager under the Management Agreement. For the three months ended September 30, 2022 and 2021 , we had $ 0.3 million and $ 0 of reimbursements of out-of-pocket costs incurred on our behalf by our Manager, respectively, which are included in general and administrative expenses. For the nine months ended September 30, 2022 and 2021 , we reimbursed $ 0.4 million and $ 0.2 million of out-of-pocket costs incurred on our behalf by our Manager, respectively, which are included in general and administrative expenses. Loans Receivable Held-for-Investment As of September 30, 2022 and December 31, 2021 , we have one loan with an outstanding principal balance of $ 92.8 million and $ 54.0 million, respectively, and a loan commitment of $ 141.1 million, whereby the borrower is an affiliate of a shareholder of our common stock who owns approximately 10.9 % of common stock outstanding as of September 30, 2022 . |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Note 12. Stock-Based Compensation We are externally managed and do not currently have any employees. On March 30, 2016, we adopted the 2016 Incentive Award Plan (the “Plan”) to promote the success and enhance the value of the Company by linking the individual interests of employees of the Manager and its affiliates to those of our stockholders. The maximum number of shares that may be issued under the Plan is equal to 8,281,594 shares. On April 4, 2019, the Board granted 877,498 time-based RSUs pursuant to the Plan which immediately became vested. Dividend equivalent payments accrued as if those shares were outstanding for all dividends declared during the period beginning August 25, 2015. The fair value of time-based RSUs was recognized immediately. The fair value of the 877,498 RSUs was determined to be $ 20.00 per share on the grant date based on our share issuances proximate to the grant date. On April 4, 2021, 584,767 fully vested RSUs were delivered and converted to common shares. During the nine months ended September 30, 2021 , 292,731 time-based RSUs were forfeited prior to their delivery, resulting in the reversal of $ 5.9 million of previously recognized stock-based compensation expense which is included as other income in the consolidated statements of operations. On April 4, 2019, the Board granted 1,622,499 performance-based RSUs pursuant to the Plan of which 0 % to 100 % were scheduled to vest at the conclusion of a three-year performance period commencing on January 1, 2019, at varying levels, if we achieved a minimum cumulative Total Stockholder Return Percentage in excess of 18 % over that period. Total Stockholder Return Percentage is equal to the quotient of (i) the sum of (A) the tangible net book value per common share as of December 31, 2021 less $ 19.84 and (B) the aggregate amount of dividends paid with respect to common stock during the performance period, (ii) and $ 19.84 , calculated on a fully diluted basis. Dividend equivalents were scheduled to accrue and be paid to participants at the conclusion of the performance period based on the number of RSUs that vested. The fair value of the 1,622,499 performance-based RSUs was determined to be $ 20.00 per share on the grant date based on our share issuances proximate to the grant date. In the event that a change in control or an initial public offering (“IPO”) had occurred prior to the completion of the performance period, the RSUs would have immediately vested prior to such change in control or IPO and dividend equivalents would have become payable. Upon completion of our IPO in November 2021, 1,097,293 RSUs immediately vested and dividend equivalents of $ 4.9 million were paid. On May 24, 2022, we adopted the Deferred Compensation Plan to provide our directors and certain executives with an opportunity to defer payment of their equity-based compensation or RSUs and director cash fees, if applicable, pursuant to the terms of the Deferred Compensation Plan. The Board awards time-based RSUs to eligible non-employee Board members on an annual basis as part of such Board members’ annual compensation in accordance with the Non-Employee Director Compensation Program. The time-based awards are generally issued in the second quarter on the date of the annual meeting of our stockholders, in conjunction with the director’s election to the Board, and the awards vest on the earlier of (x) the one-year anniversary of the grant date and (y) the date of the next annual meeting of our stockholders following the grant date, subject to the applicable participants' continued service through such vesting date. In June 2022, the eligible non-employee members of the Board were automatically granted an aggregate of 29,280 time-based RSUs under the Plan. Each RSU was granted with the right to receive dividend equivalents. Additionally, certain directors elected to defer their RSUs pursuant to the terms of the Deferred Compensation Plan. Such deferred awards will become payable on the earliest to occur of the participant’s separation from service or a change in control. The fair value of the 29,280 RSUs was determined to be $ 20.49 per share on the grant date based on the closing price of common stock on such date. Under our Deferred Compensation Plan, certain of our Board members elected to receive the annual fees and/or time-based RSUs to which they are entitled under our Non-Employee Director Compensation Program in the form of deferred RSUs. Accordingly, we issued 2,894 of deferred RSUs in lieu of cash fees to such directors, and recognized a related expense of $ 49,000 , during the three and nine months ended September 30, 2022, which is classified in general and administrative expenses. On June 14, 2022, the Board granted an aggregate of 2,130,000 time-based RSUs to employees of the Manager or its affiliates, which vest in three equal installments on each of the first, second and third anniversaries of July 1, 2022, subject to the applicable participant’s continued service through each vesting date. Each RSU was granted with the right to receive dividend equivalents. The fair value of the 2,130,000 RSUs was determined to be $ 18.72 per share on the grant date based on the closing price of common stock on such date. For the three and nine months ended September 30, 2022 we recognized $ 3.4 million and $ 4.0 million, respectively, of stock-based compensation expense related to the RSUs. For the three and nine months ended September 30, 2021 , we recognized a net reversal of previously recognized compensation expense of $ 0.2 million and $ 0.4 million, respectively. Stock-based compensation expense is considered non-cash compensation expense for the three and nine months ended September 30, 2022 and 2021. Stock-based compensation expense is recognized in earnings on a straight-line basis over the applicable award’s vesting period. Forfeitures of stock-based compensation awards are recognized as they occur. As of September 30, 2022 , total unrecognized compensation expense was $ 36.4 million based on the grant date fair value of RSUs granted. This expense is expected to be recognized over a remaining period of 2.7 years from September 30, 2022. The following table details the time-based RSU activity during the nine months ended September 30, 2022 and 2021: Time-based Restricted Stock Units Performance-based Restricted Stock Units Weighted-Average Weighted-Average Number of Grant Date Fair Number of Grant Date Fair Restricted Shares Value Per Share Restricted Shares Value Per Share Unvested, December 31, 2021 - $ - - $ - Granted 2,159,280 $ 18.74 - $ - Unvested, September 30, 2022 2,159,280 $ 18.74 - $ - Time-based Restricted Stock Units Performance-based Restricted Stock Units Weighted-Average Weighted-Average Number of Grant Date Fair Number of Grant Date Fair Restricted Shares Value Per Share Restricted Shares Value Per Share Unvested, December 31, 2020 - $ - 1,622,499 $ 20.00 Forfeited/cancelled - $ - ( 525,206 ) $ 20.00 Unvested, September 30, 2021 - $ - 1,097,293 $ 20.00 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 13. Income Taxes We have elected to be taxed as a REIT under Sections 856 through 860 of the Internal Revenue Code commencing with our taxable year ended December 31, 2015 and expect to continue to operate so as to qualify as a REIT. As a result, we will generally not be subject to federal and state income tax on that portion of our income that we distribute to stockholders if we distribute at least 90 % of our taxable income, determined without regard to the deduction for dividends paid and excluding any net capital gains and activity conducted within our taxable REIT subsidiary (“TRS”), and comply with certain other requirements to qualify as a REIT. Since Commencement of Operations, we have been in compliance with all REIT requirements and we plan to continue to operate so that we meet the requirements for taxation as a REIT. Therefore, other than amounts relating to our TRS, as described below, we have not provided for current income tax expense related to our REIT taxable income for the nine months ended September 30, 2022 and 2021, respectively. Additionally, no provision has been made for federal or state income taxes in the accompanying financial statements, as we believe we have met the prescribed requisite requirements. Our real estate owned is held in a TRS. A TRS is a corporation that is owned directly or indirectly by a REIT and has jointly elected with the REIT to be treated as a TRS for tax purposes. TRSs provide REITs the flexibility to hold, up to 20 % of their total assets, entities or investments that otherwise would not be permissible in the REIT structure. Our TRS is not consolidated for U.S. federal income tax purposes and is taxed separately as a corporation. For financial reporting purposes, a provision or benefit for current and deferred taxes is established for the portion of earnings or expense recognized by us with respect to our TRS. No current or deferred tax benefit or expense was recorded for the three and nine months ended September 30, 2022 . We recorded a deferred income tax benefit of $ 0 and $ 6.0 million during the three and nine months ended September 30, 2021. We did no t have any deferred tax assets or deferred tax liabilities at September 30, 2022 or December 31, 2021 due to a full valuation allowance that was established against our deferred tax assets. We recognize tax benefits for uncertain tax positions only if it is more likely than not that the position is sustainable based on its technical merits. Interest and penalties on uncertain tax positions are included as a component of the provision for income taxes in our consolidated statements of income. As of September 30, 2022 and December 31, 2021 , we have no t recorded any amounts for uncertain tax positions. Our tax returns are subject to audit by taxing authorities. Tax years 2018 through 2021 remain open to examination by major taxing jurisdictions to which we are subject to taxes. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 14. Commitments and Contingencies We hold a 51 % interest in CMTG/TT as a result of committing to invest $ 124.9 million in CMTG/TT. Distributions representing repayment proceeds from CMTG/TT’s loans may be recalled by CMTG/TT, if the repayment occurred at least six months prior to the loan’s initial maturity date. As of September 30, 2022 and December 31, 2021 , we contributed $ 163.1 million and $ 162.1 million, respectively, to CMTG/TT and have received return of capital distributions of $ 123.6 million, of which $ 111.1 million were recallable. As of September 30, 2022 and December 31, 2021 , CMTG’s remaining capital commitment to CMTG/TT was $ 72.9 million and $ 73.8 million, respectively. As of September 30, 2022 and December 31, 2021 , we had aggregate unfunded loan commitments of $ 1.8 billion and $ 1.1 billion respectively, which amounts will generally be funded to finance lease-related or capital expenditures by our borrowers, subject to borrowers achieving certain conditions precedent to such funding. These future commitments will expire over the remaining term of the loans, none of which exceed five years . Based on the fully extended maturity of our underlying loans, the contractual payments under all borrowings were as follows as of September 30, 2022 ($ in thousands): Year Amount 2022 $ 1,907 2023 (1) 386,660 2024 1,077,086 2025 730,406 2026 and thereafter 3,236,674 $ 5,432,733 (1) Assumes two loans with aggregate borrowings outstanding of $ 75.2 million that are in maturity default have an extended maturity date in 2023. In the normal course of business, we may enter into contracts that contain a variety of representations and provide for general indemnifications. Our maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against us that have not yet occurred. However, based on experience, we expect the risk of loss to be remote. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 15. Subsequent Events We have evaluated subsequent events through the filing of this Quarterly Report on Form 10-Q and determined that the following events or transactions have occurred: 1. We originated two floating rate loan with an aggregate loan commitment of $ 246.5 million, of which $ 34.4 million was funded at closing. 2. We received the full repayment of two loans with an unpaid principal balance of $ 20.3 million at September 30, 2022. 3. We entered into a master participation and administration agreement with JP Morgan to finance certain of our mortgage loans. The facility has a maximum facility amount of $ 1.0 billion, of which $ 400.0 million was committed at closing. The financing is non-mark-to-market and matures five years after the date on which the last asset is financed under the facility. 4. On November 8, 2022 our Board of Directors authorized a share repurchase program that authorizes the repurchase of up to $ 100 million shares of our common stock. Under the share repurchase program, repurchases can be made from time to time using a variety of methods, which may include open market purchases, privately negotiated transactions, accelerated share repurchase programs, or otherwise. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). References to common stock in 2021 include redeemable common stock. These unaudited consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2021, as filed with the Securities and Exchange Commission. In the opinion of management, all adjustments (consisting only of normal recurring adjustments) necessary for a fair statement of our financial position, results of operations and cash flows have been included. Our results of operations for the three and nine months ended September 30, 2022 are not necessarily indicative of the results to be expected for the full year or any other future period. The consolidated balance sheet at December 31, 2021 was derived from the audited annual financial statements but does not contain all of the footnote disclosures from the annual financial statements. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Estimates that are particularly susceptible to our judgment include, but are not limited to, the adequacy of allowance for loan losses, the determination of effective yield for recognition of interest income and interest expense, and impairment of certain assets. The novel coronavirus (“COVID-19”) pandemic has evolved since its onset during the first quarter of 2020, and while the global economy has begun to recover, uncertainty around future developments remain. The ongoing pandemic state has also affected global supply chains, the labor market, and inflation, which continue to impact many industries, including the collateral underlying certain of our loans. In response, the Federal Reserve has begun raising interest rates in 2022 and has indicated that it foresees further interest rate increases through the end of the year. The overall impact to the global economy will depend largely on the recovery of disrupted supply chains and industries, the extent of the labor market interruptions, the result of the Federal Reserves’ policies, and other government interventions. The current and future financial, economic and capital markets environment could remain uneven, and presents uncertainty and risk with respect to the performance of our loans receivable and real estate owned, our financial condition, results of operations, liquidity, and ability to pay dividends. |
Current Expected Credit Losses | Current Expected Credit Losses The current expected credit loss (“CECL”) reserve required under ASU 2016-13 “Financial Instruments – Credit Losses – Measurement of Credit Losses on Financial Instruments (Topic 326)” (“ASU 2016-13”), reflects our current estimate of potential credit losses related to our loan portfolio. The initial CECL allowance recorded on January 1, 2021 was reflected as a direct charge to retained earnings on our consolidated statements of changes in stockholders’ equity. Subsequent changes to the CECL allowance are recognized through net income on our consolidated statements of operations. ASU 2016-13 specifies the reserve should be based on relevant information about past events, including historical loss experience, current portfolio, market conditions and reasonable and supportable forecasts for the duration of each respective loan. General CECL Allowance Our loans are typically collateralized by real estate, or in the case of mezzanine loans, by an equity interest in an entity that owns real estate. We consider key credit quality indicators in underwriting loans and estimating credit losses, including, but not limited to: the capitalization of borrowers and sponsors; the expertise of the borrowers and sponsors in a particular real estate sector and geographic market; collateral type; geographic region; use and occupancy of the property; property market value; loan-to-value (“LTV”) ratio; loan amount and lien position; our risk rating for the same and similar loans; and prior experience with the borrower and sponsor. This information is used to assess the financial and operating capability, experience and profitability of the borrower/sponsor. Ultimate repayment of our loans is sensitive to interest rate changes, general economic conditions, liquidity, LTV ratio, existence of a liquid investment sales market for commercial properties, and availability of replacement short-term or long-term financing. We regularly evaluate on a loan-by-loan basis, the extent and impact of any credit deterioration associated with the performance and/or value of the underlying collateral property, the financial and operating capability of the borrower/sponsor, the financial strength of loan guarantors, if any, and the overall economic environment, real estate sector, and geographic sub-market in which the borrower operates, at least quarterly. Such analyses are completed and reviewed by asset management personnel and evaluated by senior management, who utilize various data sources, including, to the extent available (i) periodic financial data such as property occupancy, tenant profile, rental rates, operating expenses, the borrower’s exit plan, and capitalization and discount rates, (ii) site inspections, (iii) sales and financing comparables, (iv) current credit spreads for refinancing and (v) other market data. Commencing the third quarter of 2022, we arrived at our general CECL reserve using the Weighted Average Remaining Maturity, or WARM method, which has been identified as an acceptable loss-rate method for estimating CECL reserves by the Financial Accounting Standards Board ("FASB"). The application of the WARM method to estimate a general CECL reserve requires judgment, including the appropriate historical loan loss reference data, the expected timing and amount of future loan fundings and repayments, the current credit quality of our portfolio, and our expectations of performance and market conditions over the relevant time period. The WARM method requires us to reference historical loan loss data from a comparable data set and apply such loss rate to each of our loans over their expected remaining term, taking into consideration expected economic conditions over the forecasted timeframe. Our general CECL reserve reflects our forecast of the current and future macroeconomic conditions that impact the performance of the commercial real estate assets securing our loans and the borrower's ultimate ability to repay. These estimates include unemployment rates, price indices for commercial properties, and market liquidity, all of which may influence the likelihood and magnitude of potential credit losses for our loans during their anticipated term. Additionally, further adjustments may be made based upon loan positions senior to ours, the risk rating of a loan, whether a loan is a construction loan, or the economic conditions specific to the property type of a loan's underlying collateral. To estimate an annual historical loss rate, we obtained historical loss rate data for loans most comparable to our loan portfolio from a commercial mortgage backed securities database licensed by a third party, Trepp LLC, which contains historical loss rates from January 1, 1999 through September 30, 2022. When evaluating the current and future macroeconomic environment, we consider the aforementioned macroeconomic factors. Historical data for each metric is compared to historical commercial real estate loan losses in order to determine the relationship between the two variables. We use projections of each macroeconomic factor, obtained from a third party, to approximate the impact the macroeconomic outlook may have on our loss rate. Selections of these economic forecasts require judgement about future events that, while based on the information available to us as of the balance sheet date, are ultimately unknowable with certainty, and the actual economic conditions could vary significantly from the estimates we made. Following a reasonable and supportable forecast period, we use a straight-line method of reverting to the historical loss rate. Additionally, we assess the obligation to extend credit through our unfunded loan commitments over each loan’s contractual period, which is considered in the estimate of the general CECL reserve. This component of the general CECL reserve will similarly impact our consolidated net income. For both the funded and unfunded portions of our loans, we consider our internal risk rating of each loan as the primary credit quality indicator underlying our assessment. We evaluate the credit quality of each of our loans receivable on an individual basis and assign a risk rating at least quarterly. We have developed a loan grading system for all of our outstanding loans receivable that are collateralized directly or indirectly by real estate. Grading criteria include as-is or as-stabilized debt yield, term of loan, property type, loan type and other more subjective variables that include property or collateral location, as-is or as-stabilized collateral value, market conditions, industry conditions and sponsor’s financial stability. We utilize the grading system to determine each loan’s risk of loss and to provide a determination as to whether an individual loan is impaired and whether a special loan loss allowance is necessary. Based on a 5-point scale, the loans are graded “1” through “5,” from less risk to greater risk, which gradings are defined as follows: 1. Very Low Risk 2. Low Risk 3. Medium Risk 4. High Risk/Potential for Loss: A loan that has a risk of realizing a principal loss 5. Impaired/Loss Likely: A loan that has a very high risk of realizing a principal loss or has otherwise incurred a principal loss Specific CECL Allowance In certain circumstances we may determine that a loan is no longer suited for the WARM method due to its unique risk characteristics, where we have deemed the borrower/sponsor to be experiencing financial difficulty, or because the repayment of the loan’s principal is collateral-dependent. We may instead elect to employ different methods to estimate loan losses that also conform to ASU 2016-13 and related guidance. If the recovery of a loan’s principal balance is entirely collateral-dependent, we may assess such an asset individually and elect to apply a practical expedient in accordance with ASU 2016-13. For such loan we would measure the specific allowance of each loan separately by using the fair value of the collateral or the net present value of its expected future cash flows. If the fair value of the collateral is less than the carrying value of the loan, an asset-specific allowance is created as a component of our overall allowance for loan losses (following the adoption of CECL, or as a loan loss allowance prior to the adoption of CECL). Specific allowances are equal to the excess of a loan’s carrying value to the present value of its expected cash flows discounted at the loan’s effective rate or the fair value of the collateral, less estimated costs to sell, if recovery of our investment is expected solely from the collateral. If we have determined that a loan or a portion of a loan is uncollectible, we will write off the loan through a charge to our current expected credit loss reserve based on the present value of expected future cash flows or the fair value of the collateral less costs to sell, if repayment is expected solely from the collateral. Significant judgment is required in determining impairment and in estimating the resulting credit loss reserve, and actual losses, if any, could materially differ from those estimates. For additional information on our General and Specific CECL Allowance please refer to Note 3—"Loans Portfolio—Current Expected Credit Losses”. |
Real Estate Owned (and Associated Debt) | Real Estate Owned (and Associated Debt) We may assume legal title or physical possession of the underlying collateral of a defaulted loan through foreclosure. If we intend to hold, operate or develop the property for a period of at least 12 months, the asset is classified as real estate owned, net. If we intend to market a property for sale in the near subsequent term, the asset is classified as real estate held for sale. Real estate owned is initially recorded at estimated fair value and is subsequently presented net of accumulated depreciation. Depreciation is computed using a straight-line method over the estimated useful lives. Real estate assets are evaluated for indicators of impairment on a quarterly basis. Factors that we may consider in our impairment analysis include, among others: (1) significant underperformance relative to historical or anticipated operating results; (2) significant negative industry or economic trends; (3) costs necessary to extend the life or improve the real estate asset; (4) significant increase in competition; and (5) ability to hold and dispose of the real estate asset in the ordinary course of business. A real estate asset is considered impaired when the sum of estimated future undiscounted cash flows expected to be generated by the real estate asset over the estimated remaining holding period is less than the carrying amount of such real estate asset. Cash flows include operating cash flows net of anticipated capital proceeds generated by the real estate asset. If the sum of such estimated cash flows are less than the fair value of the real estate, an impairment charge is recorded equal to the excess of the carrying value of the real estate asset over the fair value. When determining the fair value of a real estate asset, we make certain assumptions including, but not limited to, consideration of projected operating cash flows, comparable selling prices and projected cash flows from the eventual disposition of the real estate asset based upon our estimate of a capitalization rate and discount rate. Debt assumed in an acquisition/foreclosure of real estate is recorded at its estimated fair value at the time of the acquisition. Debt related to real estate owned is non-recourse to us. |
Equity Method Investment | Investment We account for our investments in entities in which we have the ability to influence, but do not have a controlling interest, by using the equity method of accounting. Under the equity method for which we have not elected a fair value option, the investment, originally recorded at cost, is adjusted to recognize our share of earnings or losses as they occur and for additional contributions made or distributions received. We look at the nature of the cash distributions received to determine the proper character of cash flow distributions on the accompanying consolidated statement of cash flows as either returns on investment, which would be included in operating activities, or returns of investment, which would be included in investing activities. At each reporting period we assess whether there are any indicators of impairment of our equity investments. There were no impairments of our equity method investment as of and for the three and nine months ended September 30, 2022 . |
Derivative Financial Instruments | Derivative Financial Instruments In the normal course of business, we are exposed to the effect of interest rate changes and may undertake a strategy to limit these risks through the use of derivatives. We may use derivatives primarily to reduce the impact that increases in interest rates will have on our floating rate liabilities, which may consist of interest rate swaps, interest rate caps, collars, and floors. We recognize all derivatives on the consolidated balance sheets at fair value within other assets. To determine the fair value of derivative instruments, we use a variety of methods and assumptions that are based on market conditions as of the balance sheet date, such as discounted cash flows and option-pricing models. We have not designated derivatives as hedges to qualify for hedge accounting for financial reporting purposes and fluctuations in the fair value of these derivatives have been recognized currently as unrealized gain on interest rate cap in the accompanying consolidated statements of operations. |
Other Assets | Other Assets Other assets include interest receivable, miscellaneous receivables, prepaid expenses, deferred tax asset (net of any valuation allowance), deposits funded relating to unclosed transactions, deferred financing costs related to our repurchase agreements and acquisition facility, derivative financial instruments, and repurchased shares not yet settled. |
Other Liabilities | Other Liabilities Other liabilities include interest payable, accounts payable and accrued expenses, our general CECL reserve related to our unfunded loan commitments, reserves held for loans receivable, and deposits held. |
Revenue Recognition | Revenue Recognition Interest income from loans receivable is recorded on the accrual basis based on the outstanding principal amount and the contractual terms of the loans. Recognition of fees, premiums, discounts and direct costs associated with these investments is deferred until the loan is advanced and is then amortized or accreted into interest income over the term of the loan as an adjustment to yield using the effective interest method based on expected cash flows through the expected recovery period. Income accrual may be suspended for loans when we determine that the payment of income and principal is no longer probable. Factors considered when making this determination include our assessment of the underlying collateral value, delinquency in excess of 90 days, and overall market conditions. While on non-accrual status, based on our estimation as to collectability of principal, loans are either accounted for on a cash basis, where interest income is recognized only upon actual receipt of cash, or on a cost-recovery basis, where all cash receipts reduce a loan's carrying value. If and when a loan is brought back into compliance with its contractual terms, and our Manager has determined that the borrower has demonstrated an ability and willingness to continue to make contractually required payments related to the loan, we resume accrual of interest. Revenue from real estate owned represents revenue associated with the operations of hotel properties classified as real estate owned. Revenue from the operations of the hotel properties is recognized when guestrooms are occupied, services have been rendered or fees have been earned. Revenues are recorded net of any discounts and sales and other taxes collected from customers. Revenues consist of room sales, food and beverage sales and other hotel revenues. |
Reportable Segments | Reportable Segments We evaluate the operating performance of our investments as a whole. We previously determined that we had two operating segments and one reporting segment as a result of the foreclosure of the hotel portfolio on February 8, 2021. In the first quarter of 2022, we had a change in our Chief Operating Decision Maker (CODM) who determined that we evaluate the operating performance of our investments as a whole and make operating decisions accordingly. Therefore, we have one operating segment and one reporting segment, with activities related to investing in income-producing loans collateralized by institutional quality commercial real estate. This change has been applied retrospectively to all periods presented. |
Reclassifications | Reclassifications Certain prior period amounts in the accompanying consolidated financial statements have been reclassified to conform with the current period presentation. These reclassifications had no effect on the results of operations or financial position for any period presented. |
Recent Accounting Guidance | Recent Accounting Guidance On March 31, 2022, the FASB issued ASU 2022-02, “Financial Instruments – Credit Losses (Topic 326), Troubled Debt Restructurings and Vintage Disclosures”, (“ASU 2022-02”). The standard eliminates the recognition and measurement guidance for troubled debt restructurings (“TDRs”) for creditors that have adopted ASU 2016-13 Financial Instruments – Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments, ("CECL"). In addition to eliminating the TDR accounting guidance, ASU 2022-02 changes existing disclosure requirements and introduces new disclosures related to certain modifications of instruments with borrowers experiencing financial difficulty. The standard is effective for periods beginning after December 15, 2022, with early adoption permitted. During the second quarter of 2022, we adopted this standard effective January 1, 2022 and the adoption did not have a material impact on our financial statements. The FASB issued ASU 2019-12, Income Taxes (Topic 740), (“ASU 2019-12”). ASU 2019-12 simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. ASU 2019-12 also improves the consistent application of, and simplifies, GAAP for other areas of Topic 740 by clarifying and amending existing guidance. The standard is effective for financial statements issued for fiscal years beginning after December 15, 2021, with early adoption permitted. We adopted ASU 2019-12 on January 1, 2022 and the adoption of ASU 2019-12 did not have a material impact on our consolidated financial statements. The FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, (“ASU 2020-04”). ASU 2020-04 provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions that reference the London Interbank Offering Rate ("LIBOR") or another reference rate expected to be discontinued because of reference rate reform. ASU 2020-04 is effective upon issuance of ASU 2020-04 for contract modifications and hedging relationships on a prospective basis. We have not adopted any of the optional expedients or exceptions through September 30, 2022 , but will continue to evaluate the possible adoption of any such expedients or exceptions during the effective period as circumstances evolve. |
Loans Portfolio (Tables)
Loans Portfolio (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Receivables [Abstract] | |
Schedule of Loans and Financing Receivable | Our loans receivable portfolio as of September 30, 2022 was comprised of the following loans ($ in thousands, except for number of loans): Number of Loan Commitment (4) Unpaid Principal Balance Carrying Weighted Average Spread (2) Weighted Average Interest Rate (3) Loans receivable held-for-investment: Variable: Senior loans (1) 69 $ 8,920,827 $ 7,156,048 $ 7,105,113 + 4.02% 7.10 % Subordinate loans 2 61,500 59,481 59,602 + 11.57% 14.71 % 71 8,982,327 7,215,529 7,164,715 + 4.08% 7.17 % Fixed: Senior loans (1) 4 $ 41,787 $ 39,050 $ 39,049 N/A 7.61 % Subordinate loans 2 125,927 125,927 125,647 N/A 8.49 % 6 167,714 164,977 164,696 8.28 % Total/Weighted Average 77 $ 9,150,041 $ 7,380,506 $ 7,329,411 N/A 7.19 % Current expected credit loss reserve ( 59,188 ) Loans receivable held-for-investment, net $ 7,270,223 (1) Senior loans include senior mortgages and similar loans, including related contiguous subordinate loans (if any), and pari passu participations in senior mortgage loans. (2) The weighted average spread is expressed as a spread over the relevant floating benchmark rates. One-month LIBOR as of September 30, 2022 was 3.14 % . One-month term Secured Overnight Financing Rate ("SOFR") as of September 30, 2022 was 3.04 % . Weighted average is based on outstanding principal as of September 30, 2022 . (3) Reflects the weighted average interest rate based on the applicable floating benchmark rate (if applicable), including LIBOR/SOFR floors (if applicable). Weighted average is based on outstanding principal as of September 30, 2022 and includes loans on non-accrual status. (4) Loan commitment represents principal outstanding plus remaining unfunded loan commitments. Our loans receivable portfolio as of December 31, 2021 was comprised of the following loans ($ in thousands, except for number of loans): Number of Loan Commitment (5) Unpaid Principal Balance Carrying Weighted Average Spread (2) Weighted Average Interest Rate (4) Loans receivable held-for-investment: Variable: Senior loans (1,3) 51 $ 7,163,032 $ 6,119,619 $ 6,085,351 + 4.06% 5.16 % Subordinate loans 3 137,079 133,119 133,552 + 10.38% 11.37 % 54 7,300,111 6,252,738 6,218,903 + 4.19% 5.29 % Fixed: Senior loans (1) 3 $ 62,573 $ 62,573 $ 62,782 N/A 10.09 % Subordinate loans 2 125,927 125,927 125,620 N/A 8.49 % 5 188,500 188,500 188,402 9.02 % Total/Weighted Average 59 $ 7,488,611 $ 6,441,238 $ 6,407,305 N/A 5.40 % Current expected credit loss reserve ( 67,010 ) Loans receivable held-for-investment, net $ 6,340,295 (1) Senior loans include senior mortgages and similar loans, including related contiguous subordinate loans (if any), and pari passu participations in senior mortgage loans. (2) The weighted average spread is expressed as a spread over the relevant floating benchmark rates. One-month LIBOR as of December 31, 2021 was 0.10 %. Weighted average is based on outstanding principal as of December 31, 2021 . (3) Includes a fixed rate loan with an outstanding principal balance of $ 33.5 million and a loan commitment of $ 39.7 million as of December 31, 2021 , which shares the same collateral as floating rate loans with an outstanding principal balance of $ 103.1 million and a loan commitment of $ 104.4 million at December 31, 2021 . (4) Reflects the weighted average interest rate based on the applicable floating benchmark rate (if applicable), including LIBOR floors (if applicable). Weighted average is based on outstanding principal as of December 31, 2021 and includes loans on non-accrual status. Loan commitment represents principal outstanding plus unfunded loan commitments. |
Schedule of Range of LIBOR Floors | The following table presents the range of LIBOR/SOFR floors held in our loan portfolio as of September 30, 2022 based on outstanding principal ($ in thousands): One-month LIBOR/SOFR Floor Range Unpaid % of Cumulative 2.00 % - 2.50 % $ 782,123 11 % 11 % 1.50 % - 1.99 % 1,569,759 21 % 32 % 1.00 % - 1.49 % 738,591 10 % 42 % 0.50 % - 0.99 % 342,086 5 % 47 % < 0.50 % 3,135,761 42 % 89 % No floor 647,209 9 % 98 % Total Floating Rate Loans 7,215,529 Total Fixed Rate Loans 164,977 2 % 100 % Total Loans $ 7,380,506 |
Summary of Carrying Value and Significant Characteristics of Loans Receivable on Non-accrual Status | The following table presents the carrying value and significant characteristics of our loans receivable on non-accrual status as of September 30, 2022 ($ in thousands): Origination Date Initial Maturity Date Date Through Which Interest Collected Risk Rating Carrying Value Unpaid Principal Balance Specific Net Carrying Value Interest Recognition Method(1) 8/2/2019 10/30/2021 11/1/2021 4 $ 67,000 $ 67,000 $ - $ 67,000 Cash Basis 7/1/2019 12/30/2020 7/1/2020 5 3,500 3,500 - 3,500 Cost Recovery Total non-accrual (2) 70,500 70,500 - 70,500 Carrying value of associated financings $ ( 33,500 ) Net carrying value $ 37,000 (1) No interest income was recognized on these loans for the nine months ended September 30, 2022 . (2) Loans classified as non-accrual represented 1.0 % of the total loan portfolio at September 30, 2022 , based on unpaid principal balance. Excludes two additional loans with an aggregate carrying value of $ 136.8 million that are in maturity default. The following table presents the carrying value and significant characteristics of our loans receivable on non-accrual status as of December 31, 2021 ($ in thousands): Origination Date Initial Maturity Date Date Through Which Interest Collected Risk Rating Carrying Value Unpaid Principal Balance Specific Net Carrying Value Interest Recognition Method 5/5/2017 1/1/2023 12/1/2021 5 $ 11,533 $ 11,533 $ ( 333 ) $ 11,200 Cost Recovery 7/10/2018 12/10/2023 12/1/2021 4 77,530 81,380 - 77,530 Cash Basis Total current 89,063 92,913 ( 333 ) 88,730 8/2/2019 10/30/2021 11/1/2021 4 67,000 67,000 - 67,000 Cash Basis 9/21/2018 10/1/2020 2/1/2020 4 116,211 116,020 - 116,211 Cash Basis 3/29/2018 1/26/2021 7/9/2020 4 76,069 75,579 - 76,069 Cash Basis 7/1/2019 12/30/2020 7/1/2020 5 15,000 15,000 ( 6,000 ) 9,000 Cost Recovery Total delinquent 274,280 273,599 ( 6,000 ) 268,280 Total non-accrual (1) $ 363,343 $ 366,512 $ ( 6,333 ) $ 357,010 Carrying value of associated financings $ ( 122,450 ) Net carrying value $ 234,560 (1) Loans classified as non-accrual and delinquent on debt service represented 4.1 % of the total loan portfolio at December 31, 2021 , based on unpaid principal balance. |
Schedule of Loan Receivable Portfolio | Activity relating to the loans receivable portfolio for the nine months ended September 30, 2022 ($ in thousands): Unpaid Principal Balance Deferred Fees Specific CECL Allowance Carrying Value (1) Balance at December 31, 2021 $ 6,441,238 $ ( 33,933 ) $ ( 6,333 ) $ 6,400,972 Initial funding of new loan originations and acquisitions 1,996,086 - - 1,996,086 Advances on existing loans 429,901 - - 429,901 Non-cash advances in lieu of interest 50,876 966 - 51,842 Origination fees, extension fees and exit fees - ( 37,288 ) - ( 37,288 ) Repayments of loans receivable ( 1,389,947 ) - - ( 1,389,947 ) Repayments of non-cash advances in lieu of interest ( 20,128 ) - - ( 20,128 ) Accretion of fees - 19,351 - 19,351 Sale proceeds ( 146,912 ) - - ( 146,912 ) Gain (loss) on sale 30,892 ( 191 ) - 30,701 Specific CECL Allowance - - ( 5,205 ) ( 5,205 ) Principal charge-offs ( 11,500 ) - 11,500 - Balance at September 30, 2022 $ 7,380,506 $ ( 51,095 ) $ ( 38 ) $ 7,329,373 General CECL Allowance $ ( 59,150 ) Carrying Value $ 7,270,223 (1) Balance at December 31, 2021 does not include general CECL allowance. Our loan participations sold as of September 30, 2022 are summarized as follows ($ in thousands): Contractual Maximum Borrowing Outstanding Carrying Carrying (1) 8/1/2023 8/1/2023 $ 138,322 $ 138,322 $ 280,983 10/18/2023 10/18/2024 105,930 105,559 192,282 12/31/2024 12/31/2025 20,000 19,775 149,628 Total $ 264,252 $ 263,656 $ 622,893 (1) Includes cash reserve balances. Our loan participations sold as of December 31, 2021 are summarized as follows ($ in thousands): Contractual Maximum Borrowing Outstanding Carrying Carrying 8/1/2022 8/1/2023 $ 148,322 $ 148,133 $ 290,783 12/31/2024 12/31/2025 20,000 19,611 130,061 Total $ 168,322 $ 167,744 $ 420,844 |
Schedule of Interests In Loans Receivable Held For Investment | Our interests in loans receivable portfolio as of December 31, 2021 was comprised of the following loan ($ in thousands): Number of Loan Commitment (3) Unpaid Principal Balance Carrying Value Stated Rate (2) Interest Rate (4) Senior loans (1) 1 $ 200,727 $ 161,566 $ 161,864 L + 4.25% 5.50 % Current expected credit loss reserve ( 14 ) Interests in loans receivable held-for-investment, net $ 161,850 (1) Senior loans include senior mortgages and similar loans, including related contiguous subordinate loans (if any), and pari passu participations in senior mortgage loans. (2) One-month LIBOR as of December 31, 2021 was 0.10 % . (3) Loan commitment represents principal outstanding plus unfunded loan commitments. (4) Reflects the interest rate based on the applicable floating benchmark rate (if applicable), including LIBOR/SOFR floors (if applicable). |
Schedule of Interests In Loans Receivable Portfolio | Activity relating to the interests in loans receivable portfolio for the nine months ended September 30, 2022 ($ in thousands): Unpaid Principal Balance Deferred Fees Carrying Value (1) Balance at December 31, 2021 $ 161,566 $ 298 $ 161,864 Advances on existing interests in loans receivable 14,653 - 14,653 Non-cash advances in lieu of interest 2,427 - 2,427 Origination fees, extension fees and exit fees - ( 502 ) ( 502 ) Repayments of interests in loans receivable ( 165,468 ) - ( 165,468 ) Repayment of non-cash advances in lieu of interest ( 13,178 ) - ( 13,178 ) Accretion of origination fees, net - 204 204 Balance at September 30, 2022 $ - $ - $ - (1) Balance at December 31, 2021 does not include general CECL allowance. |
Schedule of Overall Statistics for Loans Receivable and Interests in Loans Receivable Portfolio | The following table details overall statistics for our loans receivable and interests in loans receivable portfolio ($ in thousands): Loans Receivable Interests in Loans Receivable September 30, 2022 December 31, 2021 September 30, 2022 December 31, 2021 Weighted average yield to maturity 7.7 % 5.6 % N/A 6.7 % Weighted average term to fully extended maturity 3.5 years 3.3 years N/A 1.6 years |
Schedule of Loans Receivable and Interests in Portfolio By Loan Type | The following table presents our loans receivable and interests in loans receivable portfolio by loan type, as well as property type and geographic location of the properties collateralizing these loans as of September 30, 2022 and December 31, 2021 ($ in thousands): September 30, 2022 December 31, 2021 Loan Type Carrying Value Percentage Carrying Value Percentage Senior loans (1) $ 7,144,162 97 % $ 6,309,997 96 % Subordinate loans 185,249 3 % 259,172 4 % $ 7,329,411 100 % $ 6,569,169 100 % Current expected credit loss reserve $ ( 59,188 ) $ ( 67,024 ) $ 7,270,223 $ 6,502,145 Property Type Carrying Value Percentage Carrying Value Percentage Office $ 1,064,017 15 % $ 1,113,805 17 % Mixed-use (2) 641,365 9 % 734,613 11 % Hospitality 1,519,301 21 % 1,176,842 18 % Land 441,894 6 % 631,713 10 % Multifamily 3,019,352 41 % 1,986,628 30 % For Sale Condo 466,299 6 % 710,660 11 % Other 177,183 2 % 214,908 3 % $ 7,329,411 100 % $ 6,569,169 100 % Current expected credit loss reserve $ ( 59,188 ) $ ( 67,024 ) $ 7,270,223 $ 6,502,145 Geographic Location Carrying Value Percentage Carrying Value Percentage United States Northeast $ 1,994,376 28 % $ 2,734,550 41 % Mid Atlantic 815,889 11 % 1,235,527 19 % Midwest 454,945 6 % 309,298 5 % Southeast 941,867 13 % 836,904 13 % Southwest 692,144 9 % 269,461 4 % West 2,423,852 33 % 1,156,896 18 % Other 6,338 0 % 26,533 0 % $ 7,329,411 100 % $ 6,569,169 100 % Current expected credit loss reserve $ ( 59,188 ) $ ( 67,024 ) $ 7,270,223 $ 6,502,145 (1) Senior loans include senior mortgages and similar credit quality loans, including related contiguous subordinate loans and pari passu participations in senior mortgage loans. (2) Mixed-use comprises of 5 % office, 2 % retail, 1 % for sale condo, 1 % multifamily, and immaterial hospitality and signage components. |
Summarizes of Interest and Accretion Income from Loans Receivable | The following table summarizes our interest and accretion income from loans receivable held-for-investment, from interests in loans receivable held-for-investment, and from interest on cash balances, for the three and nine months ended September 30, 2022 and 2021, respectively ($ in thousands): Three Months Ended Nine Months Ended September 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021 Coupon interest $ 116,435 $ 96,913 $ 295,080 $ 294,771 Interest on cash and cash equivalents 1,229 2 1,572 29 Accretion of fees 8,856 6,961 19,555 19,526 Total interest and related income (1) $ 126,520 $ 103,876 $ 316,207 $ 314,326 (1) We recognized $ 3.6 million and $ 4.5 million in pre-payment penalties and accelerated fees during the three and nine months ended September 30, 2022, respectively. We recognized $ 1.0 million and $ 2.1 million in pre-payment penalties and accelerated fees during the three and nine months ended September 30, 2021 . |
Market Internal Risk Rating Benefit Activity | The following tables allocate the principal balance and carrying value of the loans receivable and interests in loans receivable based on our internal risk ratings ($ in thousands): September 30, 2022 Risk Rating Number of Loans Unpaid Principal Balance Carrying Value % of Total of Unpaid Principal Balance 1 0 $ - $ - 0 % 2 1 927 907 0 % 3 67 6,558,513 6,510,965 89 % 4 7 814,728 811,201 11 % 5 2 6,338 6,338 0 % 77 $ 7,380,506 $ 7,329,411 Current expected credit loss reserve ( 59,188 ) $ 7,270,223 December 31, 2021 Risk Rating Number of Loans Unpaid Principal Balance Carrying Value % of Total of Unpaid Principal Balance 1 1 $ 35,721 $ 35,699 1 % 2 6 705,886 703,714 10 % 3 42 4,678,785 4,649,076 71 % 4 9 1,155,879 1,154,147 18 % 5 2 26,533 26,533 0 % 60 $ 6,602,804 $ 6,569,169 Current expected credit loss reserve ( 67,024 ) $ 6,502,145 |
Schedule of Activity In Allowance For Loan Losses | The following table illustrates the quarterly changes in the current expected credit loss reserve for the nine months ended September 30, 2022 and 2021, respectively ($ in thousands): General CECL Allowance Specific CECL Allowance (1) Loans Receivable Held-for-Investment Interests in Loans Receivable Held-for-Investment Accrued Interest Receivable Unfunded Loan Commitments (2) Total Total current expected credit loss $ 6,000 $ - $ - $ - $ - $ 6,000 Initial CECL allowance, January 1, - 64,274 406 357 13,214 78,251 Increase (reversal) in current credit - 1,547 ( 141 ) ( 14 ) ( 1,577 ) ( 185 ) Total current expected credit loss $ 6,000 $ 65,821 $ 265 $ 343 $ 11,637 $ 84,066 Increase (reversal) in current credit 500 ( 3,954 ) 270 ( 33 ) ( 4,705 ) ( 7,922 ) Total current expected credit loss $ 6,500 $ 61,867 $ 535 $ 310 $ 6,932 $ 76,144 Increase (reversal) in current credit 2,000 ( 11,154 ) ( 306 ) ( 64 ) 218 ( 9,306 ) Total current expected credit loss $ 8,500 $ 50,713 $ 229 $ 246 $ 7,150 $ 66,838 Total current expected credit loss $ 6,333 $ 60,677 $ 14 $ 218 $ 6,286 $ 73,528 Increase (reversal) in current credit ( 133 ) ( 1,269 ) 28 ( 218 ) 3,694 2,102 Total current expected credit loss $ 6,200 $ 59,408 $ 42 $ - $ 9,980 $ 75,630 Principal charge-offs ( 11,500 ) - - - - ( 11,500 ) Increase (reversal) in current credit 5,405 ( 113 ) ( 42 ) - 3,280 8,530 Total current expected credit loss $ 105 $ 59,295 $ - $ - $ 13,260 $ 72,660 Increase (reversal) in current credit ( 67 ) ( 145 ) - - 2,564 2,352 Total current expected credit loss $ 38 $ 59,150 $ - $ - $ 15,824 $ 75,012 Percent of Unpaid Principal Balance at September 30, 2022 1.0 % (1) As of December 31, 2020 , amounts represent specific loan loss provisions recorded on assets before the adoption of ASU 2016-13. After the adoption of ASU 2016-13 on January 1, 2021, amounts represent specific CECL allowance. (2) The CECL allowance for unfunded commitments is included in other liabilities on the consolidated balance sheets. |
Schedule of Carrying Value of Loan Portfolio Based on Internal Risk Ratings | Our primary credit quality indicator is our internal risk ratings, which are further discussed above. The following table presents the amortized cost basis of our loans receivable as of September 30, 2022 by year of origination and risk rating ($ in thousands): Amortized Cost Basis by Origination Year Risk Rating Number of Loans Amortized Cost Basis 2022 2021 2020 2019 2018 2017 1 0 $ - $ - $ - $ - $ - $ - $ - 2 1 907 - - - - 907 - 3 67 6,510,965 2,019,264 1,853,294 91,736 1,649,447 799,735 97,489 4 7 811,201 - - 199,660 224,903 386,638 - 5 2 17,838 - - - 15,000 - 2,838 Charge-offs ( 11,500 ) - - - ( 11,500 ) - - 77 $ 7,329,411 $ 2,019,264 $ 1,853,294 $ 291,396 $ 1,877,850 $ 1,187,280 $ 100,327 |
Real Estate Owned, Net (Tables)
Real Estate Owned, Net (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Real Estate Owned, Disclosure of Detailed Components [Abstract] | |
Summary of additional detail related to the company's real estate owned, net | The following table presents additional detail related to our real estate owned, net as of September 30, 2022 and December 31, 2021 ($ in thousands): September 30, 2022 December 31, 2021 Land $ 123,100 $ 123,100 Building 284,400 284,400 Capital improvements 1,945 - Furniture, fixtures and equipment 6,500 6,500 Real estate assets 415,945 414,000 Less: accumulated depreciation ( 13,115 ) ( 7,113 ) Real estate owned, net $ 402,830 $ 406,887 |
Repurchase Agreements, Loan P_2
Repurchase Agreements, Loan Participations Sold, Net, Notes Payable, Net, Secured Term Loan, Net, Debt Related to Real Estate Owned, Net, and Acquisition Facility (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Securities Loaned and Securities Sold under Agreement to Repurchase, Gross Including Not Subject to Master Netting Arrangement [Abstract] | |
Summary of Portfolio Financings | The following table summarizes our portfolio financings as of September 30, 2022 and December 31, 2021 ($ in thousands): September 30, 2022 December 31, 2021 Capacity Borrowing Outstanding Weighted (1) Capacity Borrowing Outstanding Weighted (1) Repurchase agreements $ 4,700,000 $ 3,781,687 + 2.16 % $ 4,065,000 $ 3,274,508 + 2.00 % Repurchase agreements - Side Car 271,171 212,033 + 4.51 % 271,171 215,003 + 4.50 % Loan participations sold 264,252 264,252 + 3.77 % 168,322 168,322 + 3.79 % Notes payable 383,898 127,764 + 3.09 % 48,000 48,000 + 4.00 % Secured Term Loan 756,997 756,997 + 4.50 % 762,717 762,717 + 4.50 % Debt related to real estate owned 290,000 290,000 + 2.78 % 290,000 290,000 + 2.78 % Total / weighted average $ 6,666,318 $ 5,432,733 + 2.71 % $ 5,605,210 $ 4,758,550 + 2.65 % (1) Weighted average spread over the applicable benchmark rate is based on unpaid principal balance. One-month LIBOR as of September 30, 2022 was 3.14 % . One-month term SOFR at September 30, 2022 was 3.04 % . |
Summary of Repurchase Agreements | The following table summarizes our repurchase agreements by lender as of September 30, 2022 ($ in thousands): Lender Initial Fully (1) Maximum Borrowing Undrawn JP Morgan Chase Bank, N.A. - Main Pool 6/29/2025 6/29/2027 $ 1,500,000 $ 1,235,227 $ 264,773 JP Morgan Chase Bank, N.A. - Side Car 5/27/2023 5/27/2024 271,171 212,033 59,138 Morgan Stanley Bank, N.A. 1/26/2023 1/26/2025 1,000,000 875,493 124,507 Goldman Sachs Bank USA 5/31/2023 5/31/2025 500,000 393,398 106,602 Wells Fargo Bank, N.A. 9/29/2023 9/29/2026 800,000 745,603 54,397 Barclays Bank PLC 12/20/2022 12/20/2025 500,000 186,383 313,617 Deutsche Bank AG, New York Branch (2) 6/26/2023 6/26/2026 400,000 345,583 54,417 Total $ 4,971,171 $ 3,993,720 $ 977,451 (1) Facility maturity dates may be extended based on certain conditions being met. (2) On August 17, 2022, this facility's capacity was increased to $ 400 million, the reference rate was changed from LIBOR to SOFR, and the fully extended maturity was extended to June 26, 2026 . The following table summarizes our repurchase agreements by lender as of December 31, 2021 ($ in thousands): Lender Initial Fully (1) Maximum Borrowing Undrawn JP Morgan Chase Bank, N.A. - Main Pool (2) 6/29/2025 6/29/2027 $ 1,250,000 $ 1,173,280 $ 76,720 JP Morgan Chase Bank, N.A. - Side Car 5/27/2023 5/27/2024 271,171 215,003 56,168 Morgan Stanley Bank, N.A. (3) 1/26/2023 1/26/2024 1,000,000 1,000,000 - Goldman Sachs Bank USA 5/31/2022 5/31/2023 750,000 410,551 339,449 Barclays Bank PLC 12/20/2022 12/20/2025 500,000 193,884 306,116 Deutsche Bank AG, New York Branch 6/26/2022 6/26/2023 265,000 211,372 53,628 Wells Fargo Bank, N.A. 9/29/2023 9/29/2026 300,000 285,421 14,579 Total $ 4,336,171 $ 3,489,511 $ 846,660 (1) Facility maturity dates may be extended based on certain conditions being met. (2) On January 14, 2022, this facility's capacity was increased to $ 1.5 billion. (3) On January 25, 2022, the reference rate on this facility was changed from LIBOR to SOFR, and the fully extended maturity was extended to January 26, 2025. |
Summary of Liability Under Repurchase Agreements | Liabilities under our repurchase agreements as of September 30, 2022 are summarized as follows ($ in thousands): Lender Weighted (1) Borrowing Outstanding Carrying Carrying JP Morgan Chase Bank, N.A. - Main Pool 2.2 $ 1,235,227 $ 1,235,227 $ 1,738,886 JP Morgan Chase Bank, N.A. - Side Car 0.5 212,033 212,033 456,176 Morgan Stanley Bank, N.A. 1.9 875,493 875,493 1,345,991 Goldman Sachs Bank USA 1.0 393,398 393,398 594,591 Wells Fargo Bank, N.A. 2.4 745,603 745,603 949,591 Barclays Bank PLC 1.2 186,383 186,383 287,009 Deutsche Bank AG, New York Branch 2.0 345,583 345,583 559,846 Total/Weighted Average 1.9 $ 3,993,720 $ 3,993,720 $ 5,932,090 (1) The weighted average term (years) is determined based on the contractual initial maturity date of the corresponding loans collateralizing each facility. Weighted average is based on borrowing outstanding as of September 30, 2022 . Liabilities under our repurchase agreements as of December 31, 2021 are summarized as follows ($ in thousands): Lender Weighted (1) Borrowing Outstanding Carrying Carrying JP Morgan Chase Bank, N.A. - Main Pool 1.6 $ 1,173,280 $ 1,173,280 $ 1,626,719 JP Morgan Chase Bank, N.A. - Side Car 0.9 215,003 215,003 436,325 Morgan Stanley Bank, N.A. 2.4 1,000,000 1,000,000 1,709,758 Goldman Sachs Bank USA 1.3 410,551 410,551 589,825 Barclays Bank PLC 1.4 193,884 193,884 283,716 Deutsche Bank AG, New York Branch 2.3 211,372 211,372 327,671 Wells Fargo Bank, N.A. 2.8 285,421 285,421 362,742 Total/Weighted Average 1.9 $ 3,489,511 $ 3,489,511 $ 5,336,756 (1) The weighted average term (years) is determined based on the contractual initial maturity date of the corresponding loans collateralizing each facility. Weighted average is based on borrowing outstanding as of December 31, 2021 . |
Schedule of Loan Receivable Portfolio | Activity relating to the loans receivable portfolio for the nine months ended September 30, 2022 ($ in thousands): Unpaid Principal Balance Deferred Fees Specific CECL Allowance Carrying Value (1) Balance at December 31, 2021 $ 6,441,238 $ ( 33,933 ) $ ( 6,333 ) $ 6,400,972 Initial funding of new loan originations and acquisitions 1,996,086 - - 1,996,086 Advances on existing loans 429,901 - - 429,901 Non-cash advances in lieu of interest 50,876 966 - 51,842 Origination fees, extension fees and exit fees - ( 37,288 ) - ( 37,288 ) Repayments of loans receivable ( 1,389,947 ) - - ( 1,389,947 ) Repayments of non-cash advances in lieu of interest ( 20,128 ) - - ( 20,128 ) Accretion of fees - 19,351 - 19,351 Sale proceeds ( 146,912 ) - - ( 146,912 ) Gain (loss) on sale 30,892 ( 191 ) - 30,701 Specific CECL Allowance - - ( 5,205 ) ( 5,205 ) Principal charge-offs ( 11,500 ) - 11,500 - Balance at September 30, 2022 $ 7,380,506 $ ( 51,095 ) $ ( 38 ) $ 7,329,373 General CECL Allowance $ ( 59,150 ) Carrying Value $ 7,270,223 (1) Balance at December 31, 2021 does not include general CECL allowance. Our loan participations sold as of September 30, 2022 are summarized as follows ($ in thousands): Contractual Maximum Borrowing Outstanding Carrying Carrying (1) 8/1/2023 8/1/2023 $ 138,322 $ 138,322 $ 280,983 10/18/2023 10/18/2024 105,930 105,559 192,282 12/31/2024 12/31/2025 20,000 19,775 149,628 Total $ 264,252 $ 263,656 $ 622,893 (1) Includes cash reserve balances. Our loan participations sold as of December 31, 2021 are summarized as follows ($ in thousands): Contractual Maximum Borrowing Outstanding Carrying Carrying 8/1/2022 8/1/2023 $ 148,322 $ 148,133 $ 290,783 12/31/2024 12/31/2025 20,000 19,611 130,061 Total $ 168,322 $ 167,744 $ 420,844 |
Summary Of Notes Payable | Our notes payable as of September 30, 2022 are summarized as follows ($ in thousands): Contractual Maximum Borrowing Outstanding Carrying Carrying 12/31/2024 12/31/2025 $ 103,592 $ 102,327 $ 149,628 6/30/2025 6/30/2026 4,777 4,348 7,137 2/2/2026 2/2/2027 19,395 18,400 23,225 9/2/2026 9/2/2027 - ( 1,234 ) ( 1,763 ) Total $ 127,764 $ 123,841 $ 178,227 Our notes payable as of December 31, 2021 are summarized as follows ($ in thousands): Contractual Maximum Borrowing Outstanding Carrying Carrying (1) 1/4/2022 (2) 1/4/2022 $ 48,000 $ 48,000 $ 116,512 (1) Includes all reserve balances held by servicer. In January 2022, the initial maturity was extended to July 5, 2022 and the maximum maturity date was extended to January 4, 2023. |
Summary of Secured Term Loan | The secured term loan as of September 30, 2022 is summarized as follows ($ in thousands): Contractual Stated Borrowing Maturity Date Rate (1) Interest Rate Outstanding Carrying Value 8/9/2026 S + 4.50% 7.64 % $ 756,997 $ 737,516 (1) One-month term SOFR at September 30, 2022 was 3.04 % . The secured term loan as of December 31, 2021 is summarized as follows ($ in thousands): Contractual Stated Borrowing Maturity Date Rate (1) Interest Rate Outstanding Carrying Value 8/9/2026 S + 4.50% 5.00 % $ 762,717 $ 739,762 (1) One-month term SOFR at December 31, 2021 was 0.05 % . |
Summary of additional detail related to the company's real estate portfolio | Our debt related to real estate owned as of September 30, 2022 is summarized as follows ($ in thousands): Contractual Stated Borrowing Maturity Date Rate (1) Interest Rate Outstanding Carrying Value February 9, 2024 L + 2.78% 5.78 % $ 290,000 $ 289,258 (1) One-month LIBOR at September 30, 2022 was 3.14 % , which exceeded the 3.00 % ceiling provided by our interest rate cap. See Note 7 - Derivatives for further detail of our interest rate cap. Our debt related to real estate owned as of December 31, 2021 is summarized as follows ($ in thousands): Contractual Stated Borrowing Maturity Date Rate (1) Interest Rate Outstanding Carrying Value February 9, 2024 L + 2.78% 3.53 % $ 290,000 $ 289,806 (1) One-month LIBOR at December 31, 2021 was 0.10 % . |
Summary of Interest Expense and Amortization | The following table summarizes our interest and amortization expense on secured financings, debt related to real estate owned and on the secured term loan for the three and nine months ended September 30, 2022 and 2021, respectively ($ in thousands): Three Months Ended Nine Months Ended September 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021 Interest on secured financings $ 49,893 $ 28,401 $ 107,051 $ 86,990 Interest on secured term loan 13,052 11,749 32,910 34,954 Interest on debt related to real estate owned (1) 3,903 2,640 9,206 13,001 Amortization of financing costs 5,040 5,280 14,475 16,243 Total interest and related expense $ 71,888 $ 48,070 $ 163,642 $ 151,188 (1) Interest on debt related to real estate owned includes $ 131,000 and $ 22,000 of amortization of financing costs for the three months ended September 30, 2022 and 2021 , respectively. Interest on debt related to real estate owned includes $ 176,000 and $ 34,000 of amortization of financing costs for the nine months ended September 30, 2022 and 2021 , respectively. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Instruments Measured at Carrying And Estimated Fair Value | The carrying value and estimated fair value of financial instruments not recorded at fair value on a recurring basis but required to be disclosed at fair value were as follows ($ in thousands): September 30, 2022 Fair Value Hierarchy Level Carrying Unpaid Principal Balance Fair Value Level 1 Level 2 Level 3 Loans receivable held-for-investment, net $ 7,270,223 $ 7,380,506 $ 7,244,522 $ - $ - $ 7,244,522 Repurchase agreements 3,993,720 3,993,720 3,993,720 - - 3,993,720 Loan participations sold, net 263,656 264,252 260,619 - - 260,619 Notes payable, net 123,841 127,764 126,820 - - 126,820 Secured term loan, net 737,516 756,997 724,825 - - 724,825 Debt related to real estate owned, net 289,258 290,000 280,040 - - 280,040 December 31, 2021 Fair Value Hierarchy Level Carrying Unpaid Principal Balance Fair Value Level 1 Level 2 Level 3 Loans receivable held-for-investment, net $ 6,340,295 $ 6,441,238 $ 6,434,157 $ - $ - $ 6,434,157 Interests in loans receivable held-for- 161,850 161,566 161,883 - - 161,883 Repurchase agreements 3,489,511 3,489,511 3,484,834 - - 3,484,834 Loan participations sold, net 167,744 168,322 168,738 - - 168,738 Notes payable, net 48,000 48,000 48,000 - - 48,000 Secured term loan, net 739,762 762,717 762,717 - - 762,717 Debt related to real estate owned, net 289,806 290,000 281,723 - - 281,723 |
Equity (Tables)
Equity (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Equity [Abstract] | |
Schedule of Common Stock Outstanding | The following table provides a summary of the number of common shares outstanding during the nine months ended September 30, 2022 and 2021, respectively, including redeemable common stock: Nine Months Ended Common Stock Outstanding September 30, 2022 September 30, 2021 Beginning balance 139,840,088 132,848,720 Conversion of fully vested restricted stock units to common shares - 584,767 Repurchase of common shares ( 869,590 ) - Ending balance 138,970,498 133,433,487 |
Summary of Dividends Declared For Common And Preferred Stock. | The following table details our dividend activity for common and preferred stock ($ in thousands, except per share data): For the Quarter Ended March 31, 2022 June 30, 2022 September 30, 2022 Amount Per Share Amount Per Share Amount Per Share Dividends declared - common stock $ 51,672 $ 0.37 $ 51,659 $ 0.37 $ 51,419 $ 0.37 Record Date - common stock March 31, 2022 June 30, 2022 September 30, 2022 Payment Date - common stock April 15, 2022 July 15, 2022 October 14, 2022 For the Quarter Ended March 31, 2021 June 30, 2021 September 30, 2021 Amount Per Share Amount Per Share Amount Per Share Dividends declared - common stock $ 50,000 $ 0.37 $ 50,000 $ 0.37 $ 50,000 $ 0.37 Dividends declared - preferred stock (1) $ 4 $ 0.03 $ 4 $ 0.03 $ 4 $ 0.03 Record Date - common stock March 19, 2021 June 16, 2021 September 17, 2021 Payment Date - common stock April 1, 2021 July 7, 2021 October 7, 2021 Includes 125 preferred units issued at a price of $ 1,000 per unit and entitled to a 12.50 % dividend paid semi-annually that were redeemed on December 15, 2021 at a price of $ 1,000 per unit. |
Earnings per Share (Tables)
Earnings per Share (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Earning per Share | The calculation of basic and diluted EPS is as follows ($ in thousands, except for share and per share data): Three Months Ended Nine Months Ended September 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021 Net income attributable to common stockholders $ 42,071 $ 52,877 $ 134,717 $ 153,506 Dividends on participating securities ( 799 ) - ( 1,598 ) - Participating securities' share in earnings - - - - Basic earnings $ 41,272 $ 52,877 $ 133,119 $ 153,506 Weighted average number of common stock, basic and diluted 139,430,153 133,433,487 139,592,500 133,491,390 Net income per share of common stock, basic and diluted $ 0.30 $ 0.40 $ 0.95 $ 1.15 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Related Party Transactions [Abstract] | |
Summary of Management and Incentive Fees | The following table summarizes our management fees ($ in thousands): Three Months Ended Nine Months Ended September 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021 Management fees $ 9,944 $ 9,789 $ 29,594 $ 29,152 Total $ 9,944 $ 9,789 $ 29,594 $ 29,152 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Time-Based Restricted Stock Units Activity | The following table details the time-based RSU activity during the nine months ended September 30, 2022 and 2021: Time-based Restricted Stock Units Performance-based Restricted Stock Units Weighted-Average Weighted-Average Number of Grant Date Fair Number of Grant Date Fair Restricted Shares Value Per Share Restricted Shares Value Per Share Unvested, December 31, 2021 - $ - - $ - Granted 2,159,280 $ 18.74 - $ - Unvested, September 30, 2022 2,159,280 $ 18.74 - $ - Time-based Restricted Stock Units Performance-based Restricted Stock Units Weighted-Average Weighted-Average Number of Grant Date Fair Number of Grant Date Fair Restricted Shares Value Per Share Restricted Shares Value Per Share Unvested, December 31, 2020 - $ - 1,622,499 $ 20.00 Forfeited/cancelled - $ - ( 525,206 ) $ 20.00 Unvested, September 30, 2021 - $ - 1,097,293 $ 20.00 |
Commitments and Contingencies (
Commitments and Contingencies (Table) | 9 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Contractual Maturity Payment | Based on the fully extended maturity of our underlying loans, the contractual payments under all borrowings were as follows as of September 30, 2022 ($ in thousands): Year Amount 2022 $ 1,907 2023 (1) 386,660 2024 1,077,086 2025 730,406 2026 and thereafter 3,236,674 $ 5,432,733 (1) Assumes two loans with aggregate borrowings outstanding of $ 75.2 million that are in maturity default have an extended maturity date in 2023. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2022 USD ($) | Sep. 30, 2022 USD ($) Segment | Dec. 31, 2021 USD ($) | [2] | Jun. 30, 2022 | ||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||||
Impairment of equity method investment | $ | $ 0 | $ 0 | ||||
Number of operating segments | Segment | 1 | |||||
Number of reportable segments | Segment | 1 | |||||
Unpaid Principal Balance | $ | $ 70,500,000 | [1] | $ 366,512,000 | |||
ASU 2019-12 | ||||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||||
Change in accounting principle, accounting standards update, adopted | true | true | ||||
Change in accounting principle, accounting standards update, adoption date | Jan. 01, 2022 | Jan. 01, 2022 | ||||
Change in accounting principle, accounting standards update, immaterial effect | true | true | ||||
ASU 2022-02 | ||||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||||
Change in accounting principle, accounting standards update, adopted | true | |||||
Change in accounting principle, accounting standards update, adoption date | Jan. 01, 2022 | |||||
Change in accounting principle, accounting standards update, immaterial effect | true | |||||
[1] Loans classified as non-accrual represented 1.0 % of the total loan portfolio at September 30, 2022 , based on unpaid principal balance. Loans classified as non-accrual and delinquent on debt service represented 4.1 % of the total loan portfolio at December 31, 2021 , based on unpaid principal balance. |
Loans Portfolio - Schedule of L
Loans Portfolio - Schedule of Loans and Financing Receivable (Details) $ in Thousands | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2022 USD ($) Loan | Dec. 31, 2021 USD ($) Loan | |||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Loan Commitment | $ 9,150,041 | [1] | $ 7,488,611 | [2] |
Unpaid Principal Balance | 7,380,506 | 6,441,238 | ||
Loans receivable held-for-investment | $ 7,329,411 | $ 6,407,305 | ||
Number of Loans | Loan | 77 | 59 | ||
Weighted Average Interest Rate(4) | 7.19% | [3] | 5.40% | [4] |
Less: current expected credit loss reserve | $ (59,188) | $ (67,010) | ||
Loans receivable held-for-investment, net | 7,270,223 | 6,340,295 | ||
Variable Senior Loans | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Loan Commitment | 8,920,827 | [1],[5] | 7,163,032 | [2],[6],[7] |
Unpaid Principal Balance | 7,156,048 | [5] | 6,119,619 | [6],[7] |
Loans receivable held-for-investment | $ 7,105,113 | [5] | $ 6,085,351 | [6],[7] |
Variable Senior Loans | London Interbank Offered Rate (LIBOR) | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Number of Loans | Loan | 69 | [5] | 51 | [6],[7] |
Weighted Average Spread(2) | + 4.02% | [5],[8] | + 4.06% | [6],[7],[9] |
Weighted Average Interest Rate(4) | 7.10% | [3],[5] | 5.16% | [4],[6],[7] |
Variable Subordinate Loans | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Loan Commitment | $ 61,500 | [1] | $ 137,079 | [2] |
Unpaid Principal Balance | 59,481 | 133,119 | ||
Loans receivable held-for-investment | $ 59,602 | $ 133,552 | ||
Variable Subordinate Loans | London Interbank Offered Rate (LIBOR) | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Number of Loans | Loan | 2 | 3 | ||
Weighted Average Spread(2) | + 11.57% | [8] | + 10.38% | [9] |
Weighted Average Interest Rate(4) | 14.71% | [3] | 11.37% | [4] |
Variable Loan | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Loan Commitment | $ 8,982,327 | [1] | $ 7,300,111 | [2] |
Unpaid Principal Balance | 7,215,529 | 6,252,738 | ||
Loans receivable held-for-investment | $ 7,164,715 | $ 6,218,903 | ||
Variable Loan | London Interbank Offered Rate (LIBOR) | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Number of Loans | Loan | 71 | 54 | ||
Weighted Average Spread(2) | + 4.08% | [8] | + 4.19% | [9] |
Weighted Average Interest Rate(4) | 7.17% | [3] | 5.29% | [4] |
Fixed Senior Loans | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Loan Commitment | $ 41,787 | [1],[5] | $ 62,573 | [2],[7] |
Unpaid Principal Balance | 39,050 | [5] | 62,573 | [7] |
Loans receivable held-for-investment | $ 39,049 | [5] | $ 62,782 | [7] |
Number of Loans | Loan | 4 | [5] | 3 | [7] |
Weighted Average Interest Rate(4) | 7.61% | [3],[5] | 10.09% | [4],[7] |
Fixed Subordinate Loans | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Loan Commitment | $ 125,927 | [1] | $ 125,927 | [2] |
Unpaid Principal Balance | 125,927 | 125,927 | ||
Loans receivable held-for-investment | $ 125,647 | $ 125,620 | ||
Number of Loans | Loan | 2 | 2 | ||
Weighted Average Interest Rate(4) | 8.49% | [3] | 8.49% | [4] |
Fixed Loan | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Loan Commitment | $ 167,714 | [1] | $ 188,500 | [2] |
Unpaid Principal Balance | 164,977 | 188,500 | ||
Loans receivable held-for-investment | $ 164,696 | $ 188,402 | ||
Number of Loans | Loan | 6 | 5 | ||
Weighted Average Interest Rate(4) | 8.28% | [3] | 9.02% | [4] |
[1] Loan commitment represents principal outstanding plus remaining unfunded loan commitments. Loan commitment represents principal outstanding plus unfunded loan commitments. Reflects the weighted average interest rate based on the applicable floating benchmark rate (if applicable), including LIBOR/SOFR floors (if applicable). Weighted average is based on outstanding principal as of September 30, 2022 and includes loans on non-accrual status. Reflects the weighted average interest rate based on the applicable floating benchmark rate (if applicable), including LIBOR floors (if applicable). Weighted average is based on outstanding principal as of December 31, 2021 and includes loans on non-accrual status. Senior loans include senior mortgages and similar loans, including related contiguous subordinate loans (if any), and pari passu participations in senior mortgage loans. Includes a fixed rate loan with an outstanding principal balance of $ 33.5 million and a loan commitment of $ 39.7 million as of December 31, 2021 , which shares the same collateral as floating rate loans with an outstanding principal balance of $ 103.1 million and a loan commitment of $ 104.4 million at December 31, 2021 . Senior loans include senior mortgages and similar loans, including related contiguous subordinate loans (if any), and pari passu participations in senior mortgage loans. The weighted average spread is expressed as a spread over the relevant floating benchmark rates. One-month LIBOR as of September 30, 2022 was 3.14 % . One-month term Secured Overnight Financing Rate ("SOFR") as of September 30, 2022 was 3.04 % . Weighted average is based on outstanding principal as of September 30, 2022 . The weighted average spread is expressed as a spread over the relevant floating benchmark rates. One-month LIBOR as of December 31, 2021 was 0.10 %. Weighted average is based on outstanding principal as of December 31, 2021 . |
Loans Portfolio - Schedule of_2
Loans Portfolio - Schedule of Loans and Financing Receivable (Details) (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Fixed Rate Loan | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Principal amount outstanding of contiguous loans | $ 33.5 | |
Loan Commitment Amount | 39.7 | |
Floating Rate Loan | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Principal amount outstanding of contiguous loans | 103.1 | |
Loan Commitment Amount | $ 104.4 | |
London Interbank Offered Rate (LIBOR) | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
One month LIBOR/ SOFR rate | 3.14% | 0.10% |
Secured Overnight Financing Rate (SOFR) | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
One month LIBOR/ SOFR rate | 3.04% |
Loans Portfolio - Additional In
Loans Portfolio - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
Sep. 30, 2022 | Jun. 30, 2022 | Sep. 30, 2022 | Dec. 31, 2021 | May 04, 2022 | Jun. 08, 2016 | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | |||||||||
Loans receivable held-for-investment | $ 7,329,411,000 | $ 7,329,411,000 | $ 6,407,305,000 | ||||||
Total loan commitment | 9,150,041,000 | [1] | 9,150,041,000 | [1] | 7,488,611,000 | [2] | |||
Carrying value | 9,000,000 | 9,000,000 | |||||||
Carrying value after charge off | 3,500,000 | 3,500,000 | |||||||
Unpaid principal balance | 15,000,000 | 15,000,000 | |||||||
Specific CECL Reserve | 6,000,000 | (6,333,000) | [3] | ||||||
Principal repayment received | 81,700,000 | ||||||||
Chargeoff | 11,500,000 | 1,800,000 | |||||||
Financing receivable, allowance for credit Loss | 38,000 | 38,000 | 300,000 | ||||||
Reversal provision for allowances for credit losses | 2,400,000 | 2,400,000 | |||||||
Total allowance for loan losses | 59,188,000 | 59,188,000 | 67,010,000 | ||||||
Amortized cost basis | 7,329,411,000 | 7,329,411,000 | |||||||
CMTG/TT | |||||||||
Financing Receivable Allowance For Credit Losses [Line Items] | |||||||||
Loan receivable, acquired | 73,500,000 | ||||||||
Total loan commitment | 115,300,000 | 115,300,000 | |||||||
Loan commitments funded | 75,000,000 | 75,000,000 | |||||||
Loans receivable recorded subordinate loans held | $ 78,500,000 | $ 78,500,000 | |||||||
Equity interest ownership percentage | 51% | 51% | 51% | ||||||
COVID 19 [Member] | |||||||||
Financing Receivable Allowance For Credit Losses [Line Items] | |||||||||
Total allowance for loan losses | $ 75,000,000 | $ 75,000,000 | |||||||
Senior Loans | |||||||||
Financing Receivable Allowance For Credit Losses [Line Items] | |||||||||
Loans receivable held-for-investment | $ 116,200,000 | ||||||||
Gain (Loss) on Senior Loan | $ 30,100,000 | ||||||||
Amortized cost basis | $ 87,800,000 | $ 87,800,000 | |||||||
Percentage of loans receivable held-for-investment, net | 1.21% | ||||||||
Senior Loans | Entity Loan Modification Program | |||||||||
Financing Receivable Allowance For Credit Losses [Line Items] | |||||||||
Outstanding principal balance for senior loan | $ 95,000,000 | ||||||||
Senior Loans | Maximum | |||||||||
Financing Receivable Allowance For Credit Losses [Line Items] | |||||||||
Floor interest rate | 1.57% | ||||||||
Senior Loans | Minimum | |||||||||
Financing Receivable Allowance For Credit Losses [Line Items] | |||||||||
Floor interest rate | 1% | ||||||||
Floating Rate Loan | |||||||||
Financing Receivable Allowance For Credit Losses [Line Items] | |||||||||
Percentage of unpaid principal balance on floating rate loans | 0.85% | ||||||||
[1] Loan commitment represents principal outstanding plus remaining unfunded loan commitments. Loan commitment represents principal outstanding plus unfunded loan commitments. Loans classified as non-accrual and delinquent on debt service represented 4.1 % of the total loan portfolio at December 31, 2021 , based on unpaid principal balance. |
Loans Portfolio - Summary of Ra
Loans Portfolio - Summary of Range of LIBOR/SOFR Floors held by Company (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Dec. 31, 2021 | |
Financing Receivable [Line Items] | ||
Unpaid Principal Balance | $ 7,380,506 | $ 6,441,238 |
LIBOR/SOFR Floor Range One | ||
Financing Receivable [Line Items] | ||
Unpaid Principal Balance | 782,123 | |
LIBOR/SOFR Floor Range Two | ||
Financing Receivable [Line Items] | ||
Unpaid Principal Balance | 1,569,759 | |
LIBOR/SOFR Floor Range Three | ||
Financing Receivable [Line Items] | ||
Unpaid Principal Balance | 738,591 | |
LIBOR/SOFR Floor Range Four | ||
Financing Receivable [Line Items] | ||
Unpaid Principal Balance | 342,086 | |
LIBOR/SOFR Floor Range Five | ||
Financing Receivable [Line Items] | ||
Unpaid Principal Balance | 3,135,761 | |
LIBOR/SOFR No Floor | ||
Financing Receivable [Line Items] | ||
Unpaid Principal Balance | 647,209 | |
LIBOR/SOFR Floor Floating Rate Loans | ||
Financing Receivable [Line Items] | ||
Unpaid Principal Balance | 7,215,529 | |
LIBOR/SOFR Floor Fixed Rate | ||
Financing Receivable [Line Items] | ||
Unpaid Principal Balance | $ 164,977 | |
Minimum | LIBOR/SOFR Floor Range One | ||
Financing Receivable [Line Items] | ||
One-month LIBOR Floor Range | 2% | |
% of Total | 11% | |
Minimum | LIBOR/SOFR Floor Range Two | ||
Financing Receivable [Line Items] | ||
One-month LIBOR Floor Range | 1.50% | |
% of Total | 21% | |
Minimum | LIBOR/SOFR Floor Range Three | ||
Financing Receivable [Line Items] | ||
One-month LIBOR Floor Range | 1% | |
% of Total | 10% | |
Minimum | LIBOR/SOFR Floor Range Four | ||
Financing Receivable [Line Items] | ||
One-month LIBOR Floor Range | 0.50% | |
% of Total | 5% | |
Minimum | LIBOR/SOFR Floor Range Five | ||
Financing Receivable [Line Items] | ||
% of Total | 42% | |
Minimum | LIBOR/SOFR No Floor | ||
Financing Receivable [Line Items] | ||
% of Total | 9% | |
Minimum | LIBOR/SOFR Floor Fixed Rate | ||
Financing Receivable [Line Items] | ||
% of Total | 2% | |
Maximum | LIBOR/SOFR Floor Range One | ||
Financing Receivable [Line Items] | ||
One-month LIBOR Floor Range | 2.50% | |
Cumulative % | 11% | |
Maximum | LIBOR/SOFR Floor Range Two | ||
Financing Receivable [Line Items] | ||
One-month LIBOR Floor Range | 1.99% | |
Cumulative % | 32% | |
Maximum | LIBOR/SOFR Floor Range Three | ||
Financing Receivable [Line Items] | ||
One-month LIBOR Floor Range | 1.49% | |
Cumulative % | 42% | |
Maximum | LIBOR/SOFR Floor Range Four | ||
Financing Receivable [Line Items] | ||
One-month LIBOR Floor Range | 0.99% | |
Cumulative % | 47% | |
Maximum | LIBOR/SOFR Floor Range Five | ||
Financing Receivable [Line Items] | ||
One-month LIBOR Floor Range | 0.50% | |
Cumulative % | 89% | |
Maximum | LIBOR/SOFR No Floor | ||
Financing Receivable [Line Items] | ||
Cumulative % | 98% | |
Maximum | LIBOR/SOFR Floor Fixed Rate | ||
Financing Receivable [Line Items] | ||
Cumulative % | 100% |
Loans Portfolio - Summary of Ca
Loans Portfolio - Summary of Carrying Value and Significant Characteristics of Loans Receivable on Non-accrual Status (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2022 | Dec. 31, 2021 | |||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Carrying Value | $ 70,500 | [1] | $ 363,343 | [2] |
Unpaid Principal Balance | 70,500 | [1] | 366,512 | [2] |
Specific CECL Reserve | 6,000 | (6,333) | [2] | |
Net Carrying Value | 70,500 | [1] | 357,010 | [2] |
Carrying value of associated financings | (33,500) | (122,450) | ||
Net carrying value | $ 37,000 | 234,560 | ||
Loans Receivable Current Non-Accrual | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Carrying Value | 89,063 | |||
Unpaid Principal Balance | 92,913 | |||
Specific CECL Reserve | (333) | |||
Net Carrying Value | $ 88,730 | |||
Loans Receivable Current Non-Accrual | Risk Rating Five | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Origination Date | May 05, 2017 | |||
Initial Maturity Date | Jan. 01, 2023 | |||
Date Through Which Interest Collected | Dec. 01, 2021 | |||
Carrying Value | $ 11,533 | |||
Unpaid Principal Balance | 11,533 | |||
Specific CECL Reserve | (333) | |||
Net Carrying Value | $ 11,200 | |||
Interest Recognition Method | Cost Recovery | |||
Loans Receivable Current Non-Accrual | Risk Rating Four | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Origination Date | Jul. 10, 2018 | |||
Initial Maturity Date | Dec. 10, 2023 | |||
Date Through Which Interest Collected | Dec. 01, 2021 | |||
Carrying Value | $ 77,530 | |||
Unpaid Principal Balance | 81,380 | |||
Net Carrying Value | $ 77,530 | |||
Interest Recognition Method | Cash Basis | |||
Delinquent Non Accrual | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Carrying Value | $ 274,280 | |||
Unpaid Principal Balance | 273,599 | |||
Specific CECL Reserve | (6,000) | |||
Net Carrying Value | $ 268,280 | |||
Delinquent Non Accrual | Risk Rating 4 | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Origination Date | Aug. 02, 2019 | |||
Initial Maturity Date | Oct. 30, 2021 | |||
Date Through Which Interest Collected | Nov. 01, 2021 | |||
Carrying Value | $ 67,000 | |||
Unpaid Principal Balance | 67,000 | |||
Net Carrying Value | $ 67,000 | |||
Interest Recognition Method | Cash Basis | |||
Delinquent Non Accrual | Risk Rating 4 | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Origination Date | Aug. 02, 2019 | Sep. 21, 2018 | ||
Initial Maturity Date | Oct. 30, 2021 | Oct. 01, 2020 | ||
Date Through Which Interest Collected | Nov. 01, 2021 | Feb. 01, 2020 | ||
Carrying Value | $ 67,000 | $ 116,211 | ||
Unpaid Principal Balance | 67,000 | 116,020 | ||
Net Carrying Value | $ 67,000 | $ 116,211 | ||
Interest Recognition Method | Cash Basis | [3] | Cash Basis | |
Delinquent Non Accrual | Risk Rating 4 | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Origination Date | Mar. 29, 2018 | |||
Initial Maturity Date | Jan. 26, 2021 | |||
Date Through Which Interest Collected | Jul. 09, 2020 | |||
Carrying Value | $ 76,069 | |||
Unpaid Principal Balance | 75,579 | |||
Net Carrying Value | $ 76,069 | |||
Interest Recognition Method | Cash Basis | |||
Delinquent Non Accrual | Risk Rating 5 | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Origination Date | Jul. 01, 2019 | Jul. 01, 2019 | ||
Initial Maturity Date | Dec. 30, 2020 | Dec. 30, 2020 | ||
Date Through Which Interest Collected | Jul. 01, 2020 | Jul. 01, 2020 | ||
Carrying Value | $ 3,500 | $ 15,000 | ||
Unpaid Principal Balance | 3,500 | 15,000 | ||
Specific CECL Reserve | (6,000) | |||
Net Carrying Value | $ 3,500 | $ 9,000 | ||
Interest Recognition Method | Cost Recovery | [3] | Cost Recovery | |
[1] Loans classified as non-accrual represented 1.0 % of the total loan portfolio at September 30, 2022 , based on unpaid principal balance. Loans classified as non-accrual and delinquent on debt service represented 4.1 % of the total loan portfolio at December 31, 2021 , based on unpaid principal balance. No interest income was recognized on these loans for the nine months ended September 30, 2022 . |
Loans Portfolio - Summary of _2
Loans Portfolio - Summary of Carrying Value and Significant Characteristics of Loans Receivable on Non-accrual Status (Details) (Parenthetical) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 USD ($) Loan | Dec. 03, 2021 | |
Receivables [Abstract] | ||
Interest recognized | $ 0 | |
Financing receivable, percent past due | 1% | 4.10% |
Nonaccrual carrying value maturity default | $ 136,800 | |
Number of additional loans | Loan | 2 |
Loans Portfolio - Schedule of_3
Loans Portfolio - Schedule of Loan Receivable Portfolio (Detail) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | ||
Loans Receivable Roll Forward [Line Items] | ||||
Repayment of non-cash advances on loans receivable in lieu of interest | $ 20,128 | $ 97,087 | ||
Accretion of fees | 19,351 | $ 18,677 | ||
Principal charge-offs | 11,500 | $ 1,800 | ||
Loans receivable held-for-investment | 7,329,411 | 6,407,305 | ||
Unpaid Principal Balance [Member] | ||||
Loans Receivable Roll Forward [Line Items] | ||||
Balance | 6,441,238 | |||
Initial funding of new loan originations and acquisitions | 1,996,086 | |||
Advances on existing loans | 429,901 | |||
Non-cash advances in lieu of interest | 50,876 | |||
Repayments of loans receivable | (1,389,947) | |||
Repayment of non-cash advances on loans receivable in lieu of interest | (20,128) | |||
Sale proceeds | (146,912) | |||
Gain (loss) on sale | 30,892 | |||
Principal charge-offs | (11,500) | |||
Balance | 7,380,506 | 6,441,238 | ||
Deferred Fees [Member] | ||||
Loans Receivable Roll Forward [Line Items] | ||||
Balance | (33,933) | |||
Non-cash advances in lieu of interest | 966 | |||
Origination fees, extension fees and exit fees | (37,288) | |||
Accretion of fees | 19,351 | |||
Gain (loss) on sale | (191) | |||
Balance | (51,095) | (33,933) | ||
Specific CECL Allowance [Member] | ||||
Loans Receivable Roll Forward [Line Items] | ||||
Balance | (6,333) | |||
Principal charge-offs | 11,500 | |||
Specific CECL Allowance | (5,205) | |||
Balance | (38) | (6,333) | ||
Carrying Value | ||||
Loans Receivable Roll Forward [Line Items] | ||||
Balance | [1] | 6,400,972 | ||
Initial funding of new loan originations and acquisitions | [1] | 1,996,086 | ||
Advances on existing loans | [1] | 429,901 | ||
Non-cash advances in lieu of interest | [1] | 51,842 | ||
Origination fees, extension fees and exit fees | [1] | (37,288) | ||
Repayments of loans receivable | [1] | (1,389,947) | ||
Repayment of non-cash advances on loans receivable in lieu of interest | [1] | (20,128) | ||
Accretion of fees | [1] | 19,351 | ||
Sale proceeds | [1] | (146,912) | ||
Gain (loss) on sale | [1] | 30,701 | ||
Specific CECL Allowance | [1] | (5,205) | ||
Balance | [1] | 7,329,373 | $ 6,400,972 | |
General CECL Allowance | [1] | (59,150) | ||
Loans receivable held-for-investment | [1] | $ 7,270,223 | ||
[1] Balance at December 31, 2021 does not include general CECL allowance. In the second quarter of |
Loans Portfolio - Schedule of I
Loans Portfolio - Schedule of Interests in Loans Receivable Held For Investment (Details) | 12 Months Ended | ||||
Dec. 31, 2021 USD ($) Loan | Sep. 30, 2022 USD ($) | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Loan Commitment | $ 7,488,611,000 | [1] | $ 9,150,041,000 | [2] | |
Held-to-maturity Securities | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Current expected credit loss reserve | (14,000) | ||||
Interests in loans receivable held-for-investment, net | $ 161,850,000 | $ 0 | |||
Held-to-maturity Securities | Senior Loans | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Number of Loans | Loan | [3] | 1 | |||
Loan Commitment | [3],[4] | $ 200,727,000 | |||
Unpaid Principal Balance | [3] | 161,566,000 | |||
Carrying Value | [3] | $ 161,864,000 | |||
Stated Rate | [3],[5] | L + 4.25% | |||
Interest Rate | [3],[6] | 5.50% | |||
[1] Loan commitment represents principal outstanding plus unfunded loan commitments. Loan commitment represents principal outstanding plus remaining unfunded loan commitments. Senior loans include senior mortgages and similar loans, including related contiguous subordinate loans (if any), and pari passu participations in senior mortgage loans. Loan commitment represents principal outstanding plus unfunded loan commitments. One-month LIBOR as of December 31, 2021 was 0.10 % . Reflects the interest rate based on the applicable floating benchmark rate (if applicable), including LIBOR/SOFR floors (if applicable). |
Loans Portfolio - Schedule of_4
Loans Portfolio - Schedule of Interests in Loans Receivable Held For Investment (Details) (Parenthetical) | Dec. 31, 2021 |
Held-to-maturity Securities | London Interbank Offered Rate (LIBOR) | |
Financing Receivable Recorded Investment Past Due [Line Items] | |
One month LIBOR | 0.10% |
Loans Portfolio - Schedule of_5
Loans Portfolio - Schedule of Interests in Loans Receivable Portfolio (Details) - Held-to-maturity Securities $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 USD ($) | ||
Unpaid Principal Balance [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Balance | $ 161,566 | |
Advances on existing interests in loans receivable | 14,653 | |
Non-cash advances in lieu of interest | 2,427 | |
Repayments of interests in loans receivable | (165,468) | |
Repayment of non-cash advances in lieu of interest | (13,178) | |
Deferred Fees [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Balance | 298 | |
Origination fees, extension fees and exit fees | (502) | |
Accretion of origination fees, net | 204 | |
Carrying Value | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Balance | 161,864 | [1] |
Advances on existing interests in loans receivable | 14,653 | [1] |
Non-cash advances in lieu of interest | 2,427 | [1] |
Origination fees, extension fees and exit fees | (502) | [1] |
Repayments of interests in loans receivable | (165,468) | [1] |
Repayment of non-cash advances in lieu of interest | 13,178 | [1] |
Accretion of origination fees, net | $ 204 | [1] |
[1] Balance at December 31, 2021 does not include general CECL allowance. |
Loans Portfolio - Schedule of O
Loans Portfolio - Schedule of Overall Statistics for Loans Receivable and Interests in Loans Receivable Portfolio (Details) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Loans Receivable Portfolio | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Weighted average yield to maturity | 7.70% | 5.60% |
Weighted average term to fully extended maturity | 3 years 6 months | 3 years 3 months 18 days |
Interests In Loans Receivable Portfolio | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Weighted average yield to maturity | 6.70% | |
Weighted average term to fully extended maturity | 1 year 7 months 6 days |
Loans Portfolio - Schedule of_6
Loans Portfolio - Schedule of Loans Receivable and Interests Portfolio By Loan Type (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | |
Accounts Notes And Loans Receivable [Line Items] | ||||
Total portfolio loans carrying value | $ 7,329,411 | $ 6,407,305 | ||
Less: current expected credit loss reserve | (59,188) | (67,010) | ||
Loans receivable held-for-investment, net | 7,270,223 | 6,340,295 | ||
Senior Loans | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Total portfolio loans carrying value | $ 116,200 | |||
Concentration of Risk | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Less: current expected credit loss reserve | (59,188) | (67,024) | ||
Loans receivable held-for-investment, net | 7,270,223 | 6,502,145 | ||
Concentration of Risk | Loan Type | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Total portfolio loans carrying value | $ 7,329,411 | $ 6,569,169 | ||
Percentage of total portfolio loans | 100% | 100% | ||
Concentration of Risk | Property Type | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Total portfolio loans carrying value | $ 7,329,411 | $ 6,569,169 | ||
Percentage of total portfolio loans | 100% | 100% | ||
Concentration of Risk | Property Type | Office | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Total portfolio loans carrying value | $ 1,064,017 | $ 1,113,805 | ||
Percentage of total portfolio loans | 15% | 17% | ||
Concentration of Risk | Property Type | Mixed-Use | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Total portfolio loans carrying value | [1] | $ 641,365 | $ 734,613 | |
Percentage of total portfolio loans | [1] | 9% | 11% | |
Concentration of Risk | Property Type | Hospitality | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Total portfolio loans carrying value | $ 1,519,301 | $ 1,176,842 | ||
Percentage of total portfolio loans | 21% | 18% | ||
Concentration of Risk | Property Type | Land | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Total portfolio loans carrying value | $ 441,894 | $ 631,713 | ||
Percentage of total portfolio loans | 6% | 10% | ||
Concentration of Risk | Property Type | Multifamily | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Total portfolio loans carrying value | $ 3,019,352 | $ 1,986,628 | ||
Percentage of total portfolio loans | 41% | 30% | ||
Concentration of Risk | Property Type | For Sale Condo | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Total portfolio loans carrying value | $ 466,299 | $ 710,660 | ||
Percentage of total portfolio loans | 6% | 11% | ||
Concentration of Risk | Property Type | Other | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Total portfolio loans carrying value | $ 177,183 | $ 214,908 | ||
Percentage of total portfolio loans | 2% | 3% | ||
Concentration of Risk | Geographic Location | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Total portfolio loans carrying value | $ 7,329,411 | $ 6,569,169 | ||
Percentage of total portfolio loans | 100% | 100% | ||
Concentration of Risk | Geographic Location | Northeast | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Total portfolio loans carrying value | $ 1,994,376 | $ 2,734,550 | ||
Percentage of total portfolio loans | 28% | 41% | ||
Concentration of Risk | Geographic Location | Mid Atlantic | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Total portfolio loans carrying value | $ 815,889 | $ 1,235,527 | ||
Percentage of total portfolio loans | 11% | 19% | ||
Concentration of Risk | Geographic Location | Midwest | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Total portfolio loans carrying value | $ 454,945 | $ 309,298 | ||
Percentage of total portfolio loans | 6% | 5% | ||
Concentration of Risk | Geographic Location | Southeast | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Total portfolio loans carrying value | $ 941,867 | $ 836,904 | ||
Percentage of total portfolio loans | 13% | 13% | ||
Concentration of Risk | Geographic Location | Southwest | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Total portfolio loans carrying value | $ 692,144 | $ 269,461 | ||
Percentage of total portfolio loans | 9% | 4% | ||
Concentration of Risk | Geographic Location | West | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Total portfolio loans carrying value | $ 2,423,852 | $ 1,156,896 | ||
Percentage of total portfolio loans | 33% | 18% | ||
Concentration of Risk | Geographic Location | Other | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Total portfolio loans carrying value | $ 6,338 | $ 26,533 | ||
Percentage of total portfolio loans | 0% | 0% | ||
Concentration of Risk | Senior Loans | Loan Type | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Total portfolio loans carrying value | [2] | $ 7,144,162 | $ 6,309,997 | |
Percentage of total portfolio loans | [2] | 97% | 96% | |
Concentration of Risk | Subordinate loans | Loan Type | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Total portfolio loans carrying value | $ 185,249 | $ 259,172 | ||
Percentage of total portfolio loans | 3% | 4% | ||
[1] Mixed-use comprises of 5 % office, 2 % retail, 1 % for sale condo, 1 % multifamily, and immaterial hospitality and signage components. Senior loans include senior mortgages and similar credit quality loans, including related contiguous subordinate loans and pari passu participations in senior mortgage loans. |
Loans Portfolio - Schedule of_7
Loans Portfolio - Schedule of Loans Receivable and Interests Portfolio By Loan Type (Details) (Parenthetical) - Concentration of Risk - Property Type | Sep. 30, 2022 | Dec. 31, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percentage of total portfolio loans | 100% | 100% |
Mixed-Use, Office | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percentage of total portfolio loans | 5% | |
Mixed-Use, Retail | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percentage of total portfolio loans | 2% | |
Mixed-Use, For Sale Condo | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percentage of total portfolio loans | 1% | |
Mixed-Use, Multifamily | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percentage of total portfolio loans | 1% |
Loans Portfolio - Summary of In
Loans Portfolio - Summary of Interest and Accretion Income from Loans Receivable (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | ||
Receivables [Abstract] | |||||
Coupon interest | $ 116,435 | $ 96,913 | $ 295,080 | $ 294,771 | |
Interest on cash and cash equivalents | 1,229 | 2 | 1,572 | 29 | |
Accretion of fees | 8,856 | 6,961 | 19,555 | 19,526 | |
Total interest and related income | [1] | $ 126,520 | $ 103,876 | $ 316,207 | $ 314,326 |
[1] We recognized $ 3.6 million and $ 4.5 million in pre-payment penalties and accelerated fees during the three and nine months ended September 30, 2022, respectively. We recognized $ 1.0 million and $ 2.1 million in pre-payment penalties and accelerated fees during the three and nine months ended September 30, 2021 . |
Loans Portfolio - Summary of _3
Loans Portfolio - Summary of Interest and Accretion Income from Loans Receivable (Details) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Receivables [Abstract] | ||||
Pre-payment penalties and accelerated fees | $ 3.6 | $ 1 | $ 4.5 | $ 2.1 |
Loans Portfolio - Schedule of C
Loans Portfolio - Schedule of Carrying Value of The Loans Receivable And Interests In Loans Receivable (Details) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 USD ($) Loan | Dec. 31, 2021 USD ($) Loan | |
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Number of Loans | Loan | 77 | 60 |
Principal Balance | $ 7,380,506 | $ 6,602,804 |
Carrying Value | 7,270,223 | 6,502,145 |
Carrying value gross | 7,329,411 | 6,569,169 |
Current expected credit loss reserve | $ (59,188) | $ (67,024) |
Risk Rating One | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Number of Loans | Loan | 0 | 1 |
Principal Balance | $ 35,721 | |
Carrying Value | $ 35,699 | |
% of Total of Unpaid Principal Balance | 0% | 1% |
Risk Rating Two | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Number of Loans | Loan | 1 | 6 |
Principal Balance | $ 927 | $ 705,886 |
Carrying Value | $ 907 | $ 703,714 |
% of Total of Unpaid Principal Balance | 0% | 10% |
Risk Rating Three | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Number of Loans | Loan | 67 | 42 |
Principal Balance | $ 6,558,513 | $ 4,678,785 |
Carrying Value | $ 6,510,965 | $ 4,649,076 |
% of Total of Unpaid Principal Balance | 89% | 71% |
Risk Rating Four | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Number of Loans | Loan | 7 | 9 |
Principal Balance | $ 814,728 | $ 1,155,879 |
Carrying Value | $ 811,201 | $ 1,154,147 |
% of Total of Unpaid Principal Balance | 11% | 18% |
Risk Rating Five | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Number of Loans | Loan | 2 | 2 |
Principal Balance | $ 6,338 | $ 26,533 |
Carrying Value | $ 6,338 | $ 26,533 |
% of Total of Unpaid Principal Balance | 0% | 0% |
Loans Portfolio - Loan Risk Rat
Loans Portfolio - Loan Risk Ratings (Details) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Receivables [Abstract] | ||
Weighted-average risk rating on loan exposure | 3.10% | 3.10% |
Loans Portfolio - Schedule of A
Loans Portfolio - Schedule of Activity In Current Expected Credit Loss Reserve (Details) - USD ($) $ in Thousands | 3 Months Ended | ||||||
Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | ||
Financing Receivable Allowance For Credit Losses [Line Items] | |||||||
Total current expected credit loss reserve, Balance | $ 67,010 | ||||||
Total current expected credit loss reserve, Balance | $ 59,188 | ||||||
Current Expected Credit Losses | |||||||
Financing Receivable Allowance For Credit Losses [Line Items] | |||||||
Total current expected credit loss reserve, Balance | 72,660 | $ 75,630 | 73,528 | $ 76,144 | $ 84,066 | $ 6,000 | |
Initial CECL allowance, January 1, 2021 | 78,251 | ||||||
Principal charge-offs | (11,500) | ||||||
Increase (reversal) in current credit loss reserve | 2,352 | 8,530 | 2,102 | (9,306) | (7,922) | (185) | |
Total current expected credit loss reserve, Balance | 75,012 | 72,660 | $ 75,630 | 66,838 | 76,144 | 84,066 | |
Percent of Unpaid Principal Balance at March 31, 2022 | 1% | ||||||
Current Expected Credit Losses | Specific C E C L Allowance | |||||||
Financing Receivable Allowance For Credit Losses [Line Items] | |||||||
Total current expected credit loss reserve, Balance | [1] | 105 | 6,200 | $ 6,333 | 6,500 | 6,000 | 6,000 |
Principal charge-offs | [1] | (11,500) | |||||
Increase (reversal) in current credit loss reserve | [1] | (67) | 5,405 | (133) | 2,000 | 500 | |
Total current expected credit loss reserve, Balance | [1] | 38 | 105 | 6,200 | 8,500 | 6,500 | 6,000 |
Current Expected Credit Losses | Loans Receivable Held For Investment | |||||||
Financing Receivable Allowance For Credit Losses [Line Items] | |||||||
Total current expected credit loss reserve, Balance | 59,295 | 59,408 | 60,677 | 61,867 | 65,821 | ||
Initial CECL allowance, January 1, 2021 | 64,274 | ||||||
Increase (reversal) in current credit loss reserve | (145) | (113) | (1,269) | (11,154) | (3,954) | 1,547 | |
Total current expected credit loss reserve, Balance | 59,150 | 59,295 | 59,408 | 50,713 | 61,867 | 65,821 | |
Current Expected Credit Losses | Interests In Loans Receivable Held For Investment | |||||||
Financing Receivable Allowance For Credit Losses [Line Items] | |||||||
Total current expected credit loss reserve, Balance | 42 | 14 | 535 | 265 | |||
Initial CECL allowance, January 1, 2021 | 406 | ||||||
Increase (reversal) in current credit loss reserve | (42) | 28 | (306) | 270 | (141) | ||
Total current expected credit loss reserve, Balance | 42 | 229 | 535 | 265 | |||
Current Expected Credit Losses | Accrued Interest Receivable | |||||||
Financing Receivable Allowance For Credit Losses [Line Items] | |||||||
Total current expected credit loss reserve, Balance | 218 | 310 | 343 | ||||
Initial CECL allowance, January 1, 2021 | 357 | ||||||
Increase (reversal) in current credit loss reserve | (218) | (64) | (33) | (14) | |||
Total current expected credit loss reserve, Balance | 246 | 310 | 343 | ||||
Current Expected Credit Losses | Unfunded Loan Commitments | |||||||
Financing Receivable Allowance For Credit Losses [Line Items] | |||||||
Total current expected credit loss reserve, Balance | [2] | 13,260 | 9,980 | 6,286 | 6,932 | 11,637 | |
Initial CECL allowance, January 1, 2021 | [2] | 13,214 | |||||
Increase (reversal) in current credit loss reserve | [2] | 2,564 | 3,280 | 3,694 | 218 | (4,705) | (1,577) |
Total current expected credit loss reserve, Balance | [2] | $ 15,824 | $ 13,260 | $ 9,980 | $ 7,150 | $ 6,932 | $ 11,637 |
[1] As of December 31, 2020 , amounts represent specific loan loss provisions recorded on assets before the adoption of ASU 2016-13. After the adoption of ASU 2016-13 on January 1, 2021, amounts represent specific CECL allowance. The CECL allowance for unfunded commitments is included in other liabilities on the consolidated balance sheets. |
Loan Portfolio - Schedule of Ca
Loan Portfolio - Schedule of Carrying Value of Loan Portfolio Based on Internal Risk Ratings (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2022 USD ($) Integer | |
Financing Receivable Allowance For Credit Losses [Line Items] | |
Number of Loans | Integer | 77 |
Amortized Cost Basis | $ 7,329,411 |
Amortized Cost Basis, current period charge-offs | (11,500) |
Year 1 | 1,853,294 |
Year 2 | 2,019,264 |
Year 3 | 291,396 |
Year 4 | 1,877,850 |
Charge-offs, Year 4 | (11,500) |
Year 5 | 1,187,280 |
Year 6 | $ 100,327 |
Risk Rating One | |
Financing Receivable Allowance For Credit Losses [Line Items] | |
Number of Loans | Integer | 0 |
Risk Rating Two | |
Financing Receivable Allowance For Credit Losses [Line Items] | |
Number of Loans | Integer | 1 |
Amortized Cost Basis | $ 907 |
Year 5 | $ 907 |
Risk Rating Three | |
Financing Receivable Allowance For Credit Losses [Line Items] | |
Number of Loans | Integer | 67 |
Amortized Cost Basis | $ 6,510,965 |
Year 1 | 1,853,294 |
Year 2 | 2,019,264 |
Year 3 | 91,736 |
Year 4 | 1,649,447 |
Year 5 | 799,735 |
Year 6 | $ 97,489 |
Risk Rating Four | |
Financing Receivable Allowance For Credit Losses [Line Items] | |
Number of Loans | Integer | 7 |
Amortized Cost Basis | $ 811,201 |
Year 3 | 199,660 |
Year 4 | 224,903 |
Year 5 | $ 386,638 |
Risk Rating Five | |
Financing Receivable Allowance For Credit Losses [Line Items] | |
Number of Loans | Integer | 2 |
Amortized Cost Basis | $ 17,838 |
Year 4 | 15,000 |
Year 6 | $ 2,838 |
Equity Method Investment - Addi
Equity Method Investment - Additional Information (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Jun. 08, 2016 |
Schedule of Equity Method Investments [Line Items] | ||
Equity method investment | $ 40,731 | |
CMTG/TT | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity interest ownership percentage | 51% | 51% |
Equity method investment | $ 40,700 |
Real Estate Owned, Net - Additi
Real Estate Owned, Net - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||||
Jun. 02, 2021 | Feb. 08, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |||
Mortgage Loans On Real Estate [Line Items] | |||||||||
Loan held by company | $ 622,893 | [1] | $ 622,893 | [1] | $ 420,844 | ||||
Debt related to real estate owned, net | 289,258 | 289,258 | 289,806 | ||||||
Gain on foreclosure of real estate owned | $ 1,430 | ||||||||
Real estate acquired through foreclosure, fair value | 402,830 | 402,830 | $ 406,887 | ||||||
Interest expense | 71,888 | $ 48,070 | 163,642 | 151,188 | |||||
General and administrative expense | $ 4,819 | $ 1,330 | $ 13,910 | $ 5,393 | |||||
Senior Mortgage Loans [Member] | |||||||||
Mortgage Loans On Real Estate [Line Items] | |||||||||
Maturity date | Feb. 09, 2024 | ||||||||
Principal repayment | $ 10,000 | ||||||||
Fee amount | 7,600 | ||||||||
Interest expense | 6,300 | ||||||||
General and administrative expense | 1,100 | ||||||||
Debt issuance costs | $ 200 | ||||||||
Hotel [Member] | NEW YORK [Member] | |||||||||
Mortgage Loans On Real Estate [Line Items] | |||||||||
Gain on foreclosure of real estate owned | $ 1,400 | ||||||||
Real estate acquired through foreclosure, fair value | $ 414,000 | ||||||||
Terminal capitalization rate | 6% | ||||||||
Hotel [Member] | NEW YORK [Member] | Minimum | |||||||||
Mortgage Loans On Real Estate [Line Items] | |||||||||
Discount rate | 8.50% | ||||||||
Hotel [Member] | NEW YORK [Member] | Maximum | |||||||||
Mortgage Loans On Real Estate [Line Items] | |||||||||
Discount rate | 8.75% | ||||||||
Hotel [Member] | NEW YORK [Member] | Mezzanine Loans [Member] | |||||||||
Mortgage Loans On Real Estate [Line Items] | |||||||||
Loan held by company | $ 103,900 | ||||||||
Hotel [Member] | NEW YORK [Member] | Senior Mortgage Loans [Member] | |||||||||
Mortgage Loans On Real Estate [Line Items] | |||||||||
Debt related to real estate owned, net | $ 300,000 | ||||||||
[1] Includes cash reserve balances. |
Real Estate Owned, Net - Summar
Real Estate Owned, Net - Summary of additional detail related to the company's real estate owned, net (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Property Plant And Equipment [Line Items] | ||
Real estate assets | $ 415,945 | $ 414,000 |
Less: accumulated depreciation | (13,115) | (7,113) |
Real estate acquired through foreclosure, fair value | 402,830 | 406,887 |
Land | ||
Property Plant And Equipment [Line Items] | ||
Real estate assets | 123,100 | 123,100 |
Building | ||
Property Plant And Equipment [Line Items] | ||
Real estate assets | 284,400 | 284,400 |
Capital Improvements | ||
Property Plant And Equipment [Line Items] | ||
Real estate assets | 1,945 | |
Furniture, Fixtures and Equipment | ||
Property Plant And Equipment [Line Items] | ||
Real estate assets | $ 6,500 | $ 6,500 |
Repurchase Agreements, Loan P_3
Repurchase Agreements, Loan Participations Sold, Net, Notes Payable, Net, Secured Term Loan, Net, Debt Related to Real Estate Owned, Net, and Acquisition Facility - Summary of Portfolio Financings (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 | |
Repurchase Agreement Counterparty [Line Items] | |||
Capacity | $ 6,666,318 | $ 5,605,210 | |
Borrowing Outstanding | $ 5,432,733 | $ 4,758,550 | |
Weighted Average Spread | [1] | 2.71% | 2.65% |
Repurchase Agreement [Member] | |||
Repurchase Agreement Counterparty [Line Items] | |||
Capacity | $ 4,700,000 | $ 4,065,000 | |
Borrowing Outstanding | $ 3,781,687 | $ 3,274,508 | |
Weighted Average Spread | [1] | 2.16% | 2% |
Repurchase agreements - Side Car [Member] | |||
Repurchase Agreement Counterparty [Line Items] | |||
Capacity | $ 271,171 | $ 271,171 | |
Borrowing Outstanding | $ 212,033 | $ 215,003 | |
Weighted Average Spread | [1] | 4.51% | 4.50% |
Loan Participants Sold [Member] | |||
Repurchase Agreement Counterparty [Line Items] | |||
Capacity | $ 264,252 | $ 168,322 | |
Borrowing Outstanding | $ 264,252 | $ 168,322 | |
Weighted Average Spread | [1] | 3.77% | 3.79% |
Notes Payable [Member] | |||
Repurchase Agreement Counterparty [Line Items] | |||
Capacity | $ 383,898 | $ 48,000 | |
Borrowing Outstanding | $ 127,764 | $ 48,000 | |
Weighted Average Spread | [1] | 3.09% | 4% |
Securities Loaned [Member] | |||
Repurchase Agreement Counterparty [Line Items] | |||
Capacity | $ 756,997 | $ 762,717 | |
Borrowing Outstanding | $ 756,997 | $ 762,717 | |
Weighted Average Spread | [1] | 4.50% | 4.50% |
Debt To Real Estate Owned [Member] | |||
Repurchase Agreement Counterparty [Line Items] | |||
Capacity | $ 290,000 | $ 290,000 | |
Borrowing Outstanding | $ 290,000 | $ 290,000 | |
Weighted Average Spread | [1] | 2.78% | 2.78% |
[1] Weighted average spread over the applicable benchmark rate is based on unpaid principal balance. One-month LIBOR as of September 30, 2022 was 3.14 % . One-month term SOFR at September 30, 2022 was 3.04 % . |
Repurchase Agreements, Loan P_4
Repurchase Agreements, Loan Participations Sold, Net, Notes Payable, Net, Secured Term Loan, Net, Debt Related to Real Estate Owned, Net, and Acquisition Facility - Summary of Portfolio Financings (Parenthetical) (Details) | 9 Months Ended |
Sep. 30, 2022 | |
London Interbank Offered Rate (LIBOR) | |
Repurchase Agreement Counterparty [Line Items] | |
One month LIBOR/ SOFR rate | 3.14% |
Secured Overnight Financing Rate (SOFR) | |
Repurchase Agreement Counterparty [Line Items] | |
One month LIBOR/ SOFR rate | 3.04% |
Repurchase Agreements, Loan P_5
Repurchase Agreements, Loan Participations Sold, Net, Notes Payable, Net, Secured Term Loan, Net, Debt Related to Real Estate Owned, Net, and Acquisition Facility - Summary of Repurchase Agreements (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2022 | Dec. 31, 2021 | |||
Repurchase Agreement Counterparty [Line Items] | ||||
Repurchase agreements | $ 3,993,720 | $ 3,489,511 | ||
Repurchase Agreement [Member] | ||||
Repurchase Agreement Counterparty [Line Items] | ||||
Maximum Capacity | 4,971,171 | 4,336,171 | ||
Repurchase agreements | 3,993,720 | 3,489,511 | ||
Undrawn Capacity | $ 977,451 | $ 846,660 | ||
Repurchase Agreement [Member] | JP Morgan Chase Bank NA Main Pool [Member] | ||||
Repurchase Agreement Counterparty [Line Items] | ||||
Initial Maturity | Jun. 29, 2025 | Jun. 29, 2025 | [1] | |
Fully Extended Maturity | Jun. 29, 2027 | [2] | Jun. 29, 2027 | [1] |
Maximum Capacity | $ 1,500,000 | $ 1,250,000 | [1] | |
Repurchase agreements | 1,235,227 | 1,173,280 | [1] | |
Undrawn Capacity | $ 264,773 | $ 76,720 | [1] | |
Repurchase Agreement [Member] | JP Morgan Chase Bank NA Side Car [Member] | ||||
Repurchase Agreement Counterparty [Line Items] | ||||
Initial Maturity | May 27, 2023 | May 27, 2023 | ||
Fully Extended Maturity | May 27, 2024 | [2] | May 27, 2024 | |
Maximum Capacity | $ 271,171 | $ 271,171 | ||
Repurchase agreements | 212,033 | 215,003 | ||
Undrawn Capacity | $ 59,138 | $ 56,168 | ||
Repurchase Agreement [Member] | Morgan Stanley Bank NA [Member] | ||||
Repurchase Agreement Counterparty [Line Items] | ||||
Initial Maturity | Jan. 26, 2023 | Jan. 26, 2023 | [3] | |
Fully Extended Maturity | Jan. 26, 2025 | [2] | Jan. 26, 2024 | [3] |
Maximum Capacity | $ 1,000,000 | $ 1,000,000 | [3] | |
Repurchase agreements | 875,493 | $ 1,000,000 | [3] | |
Undrawn Capacity | $ 124,507 | |||
Repurchase Agreement [Member] | Goldman Sachs Bank USA [Member] | ||||
Repurchase Agreement Counterparty [Line Items] | ||||
Initial Maturity | May 31, 2023 | May 31, 2022 | ||
Fully Extended Maturity | May 31, 2025 | [2] | May 31, 2023 | |
Maximum Capacity | $ 500,000 | $ 750,000 | ||
Repurchase agreements | 393,398 | 410,551 | ||
Undrawn Capacity | $ 106,602 | $ 339,449 | ||
Repurchase Agreement [Member] | Barclays Bank PLC [Member] | ||||
Repurchase Agreement Counterparty [Line Items] | ||||
Initial Maturity | Dec. 20, 2022 | Dec. 20, 2022 | ||
Fully Extended Maturity | Dec. 20, 2025 | [2] | Dec. 20, 2025 | |
Maximum Capacity | $ 500,000 | $ 500,000 | ||
Repurchase agreements | 186,383 | 193,884 | ||
Undrawn Capacity | $ 313,617 | $ 306,116 | ||
Repurchase Agreement [Member] | Deutsche Bank AG New York Branch [Member] | ||||
Repurchase Agreement Counterparty [Line Items] | ||||
Initial Maturity | Jun. 26, 2023 | [4] | Jun. 26, 2022 | |
Fully Extended Maturity | Jun. 26, 2026 | [2],[4] | Jun. 26, 2023 | |
Maximum Capacity | $ 400,000 | [4] | $ 265,000 | |
Repurchase agreements | 345,583 | [4] | 211,372 | |
Undrawn Capacity | $ 54,417 | [4] | $ 53,628 | |
Repurchase Agreement [Member] | Wells Fargo Bank NA [Member] | ||||
Repurchase Agreement Counterparty [Line Items] | ||||
Initial Maturity | Sep. 29, 2023 | Sep. 29, 2023 | ||
Fully Extended Maturity | Sep. 29, 2026 | [2] | Sep. 29, 2026 | |
Maximum Capacity | $ 800,000 | $ 300,000 | ||
Repurchase agreements | 745,603 | 285,421 | ||
Undrawn Capacity | $ 54,397 | $ 14,579 | ||
[1] On January 14, 2022, this facility's capacity was increased to $ 1.5 billion. Facility maturity dates may be extended based on certain conditions being met. On January 25, 2022, the reference rate on this facility was changed from LIBOR to SOFR, and the fully extended maturity was extended to January 26, 2025. On August 17, 2022, this facility's capacity was increased to $ 400 million, the reference rate was changed from LIBOR to SOFR, and the fully extended maturity was extended to June 26, 2026 . |
Repurchase Agreements, Loan P_6
Repurchase Agreements, Loan Participations Sold, Net, Notes Payable, Net, Secured Term Loan, Net, Debt Related to Real Estate Owned, Net, and Facility - Summary of Repurchase Agreements (Parenthetical) (Details) - USD ($) $ in Millions | Aug. 17, 2022 | Jan. 14, 2022 |
Securities Loaned and Securities Sold under Agreement to Repurchase, Gross Including Not Subject to Master Netting Arrangement [Abstract] | ||
Outstanding principal balance | $ 400 | $ 1,500 |
Contractual Maturity Date | Jun. 26, 2026 |
Repurchase Agreements, Loan P_7
Repurchase Agreements, Loan Participations Sold, Net, Notes Payable, Net, Secured Term Loan, Net, Debt Related to Real Estate Owned, Net, and Acquisition Facility- Summary of Liability Under Repurchase Agreements (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2022 | Dec. 31, 2021 | |||
Repurchase Agreement Counterparty [Line Items] | ||||
Carrying Value | $ 263,656 | $ 167,744 | ||
Loan held by company | $ 622,893 | [1] | $ 420,844 | |
Repurchase Agreements | ||||
Repurchase Agreement Counterparty [Line Items] | ||||
Weighted Average Term | 1 year 10 months 24 days | [2] | 1 year 10 months 24 days | [3] |
Borrowing Outstanding | $ 3,993,720 | $ 3,489,511 | ||
Carrying Value | 3,993,720 | 3,489,511 | ||
Loan held by company | $ 5,932,090 | $ 5,336,756 | ||
JP Morgan Chase Bank NA Main Pool [Member] | Repurchase Agreements | ||||
Repurchase Agreement Counterparty [Line Items] | ||||
Weighted Average Term | 2 years 2 months 12 days | [2] | 1 year 7 months 6 days | [3] |
Borrowing Outstanding | $ 1,235,227 | $ 1,173,280 | ||
Carrying Value | 1,235,227 | 1,173,280 | ||
Loan held by company | $ 1,738,886 | $ 1,626,719 | ||
JP Morgan Chase Bank NA Side Car [Member] | Repurchase Agreements | ||||
Repurchase Agreement Counterparty [Line Items] | ||||
Weighted Average Term | 6 months | [2] | 10 months 24 days | [3] |
Borrowing Outstanding | $ 212,033 | $ 215,003 | ||
Carrying Value | 212,033 | 215,003 | ||
Loan held by company | $ 456,176 | $ 436,325 | ||
Morgan Stanley Bank NA [Member] | Repurchase Agreements | ||||
Repurchase Agreement Counterparty [Line Items] | ||||
Weighted Average Term | 1 year 10 months 24 days | [2] | 2 years 4 months 24 days | [3] |
Borrowing Outstanding | $ 875,493 | $ 1,000,000 | ||
Carrying Value | 875,493 | 1,000,000 | ||
Loan held by company | $ 1,345,991 | $ 1,709,758 | ||
Goldman Sachs Bank USA [Member] | Repurchase Agreements | ||||
Repurchase Agreement Counterparty [Line Items] | ||||
Weighted Average Term | 1 year | [2] | 1 year 3 months 18 days | [3] |
Borrowing Outstanding | $ 393,398 | $ 410,551 | ||
Carrying Value | 393,398 | 410,551 | ||
Loan held by company | $ 594,591 | $ 589,825 | ||
Barclays Bank PLC [Member] | Repurchase Agreements | ||||
Repurchase Agreement Counterparty [Line Items] | ||||
Weighted Average Term | 1 year 2 months 12 days | [2] | 1 year 4 months 24 days | [3] |
Borrowing Outstanding | $ 186,383 | $ 193,884 | ||
Carrying Value | 186,383 | 193,884 | ||
Loan held by company | $ 287,009 | $ 283,716 | ||
Deutsche Bank AG New York Branch [Member] | Repurchase Agreements | ||||
Repurchase Agreement Counterparty [Line Items] | ||||
Weighted Average Term | 2 years | [2] | 2 years 3 months 18 days | [3] |
Borrowing Outstanding | $ 345,583 | $ 211,372 | ||
Carrying Value | 345,583 | 211,372 | ||
Loan held by company | $ 559,846 | $ 327,671 | ||
Wells Fargo Bank NA [Member] | Repurchase Agreements | ||||
Repurchase Agreement Counterparty [Line Items] | ||||
Weighted Average Term | 2 years 4 months 24 days | [2] | 2 years 9 months 18 days | [3] |
Borrowing Outstanding | $ 745,603 | $ 285,421 | ||
Carrying Value | 745,603 | 285,421 | ||
Loan held by company | $ 949,591 | $ 362,742 | ||
[1] Includes cash reserve balances. The weighted average term (years) is determined based on the contractual initial maturity date of the corresponding loans collateralizing each facility. Weighted average is based on borrowing outstanding as of September 30, 2022 . The weighted average term (years) is determined based on the contractual initial maturity date of the corresponding loans collateralizing each facility. Weighted average is based on borrowing outstanding as of December 31, 2021 . |
Repurchase Agreements, Loan P_8
Repurchase Agreements, Loan Participations Sold, Net, Notes Payable, Net, Secured Term Loan, Net, Debt Related to Real Estate Owned, Net, and Acquisition Facility - Additional Information (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||
Aug. 17, 2022 | Jun. 29, 2022 | Dec. 02, 2021 | Jun. 02, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | Feb. 08, 2021 | Dec. 01, 2020 | Aug. 09, 2019 | |
Repurchase Agreement Counterparty [Line Items] | ||||||||||||
Secured term loan | $ 325,000 | $ 450,000 | ||||||||||
One-month SOFR | 4.50% | |||||||||||
Contractual Maturity Date | Jun. 26, 2026 | |||||||||||
Interest expense | $ 71,888 | $ 48,070 | $ 163,642 | $ 151,188 | ||||||||
General and administrative expenses | 4,819 | $ 1,330 | 13,910 | $ 5,393 | ||||||||
Line of credit, maximum borrowing capacity | 141,100 | $ 141,100 | ||||||||||
Secured Overnight Financing Rate (SOFR) | ||||||||||||
Repurchase Agreement Counterparty [Line Items] | ||||||||||||
Debt instrument basis spread on variable rate | 3.04% | |||||||||||
Secured Term Loan | ||||||||||||
Repurchase Agreement Counterparty [Line Items] | ||||||||||||
Principal payments | $ 1,900 | |||||||||||
Contractual Maturity Date | Aug. 09, 2026 | Aug. 09, 2026 | ||||||||||
Secured Term Loan | Secured Overnight Financing Rate (SOFR) | ||||||||||||
Repurchase Agreement Counterparty [Line Items] | ||||||||||||
Debt instrument basis spread on variable rate | 3.04% | 0.05% | ||||||||||
Secured Term Loan | Secured Overnight Financing Rate (SOFR) | Minimum | ||||||||||||
Repurchase Agreement Counterparty [Line Items] | ||||||||||||
One-month SOFR | 0.10% | |||||||||||
Secured Term Loan | Secured Overnight Financing Rate (SOFR) | Maximum | ||||||||||||
Repurchase Agreement Counterparty [Line Items] | ||||||||||||
One-month SOFR | 0.50% | |||||||||||
Acquisition Facility | ||||||||||||
Repurchase Agreement Counterparty [Line Items] | ||||||||||||
Contractual Maturity Date | Jun. 29, 2025 | |||||||||||
Line of credit, maximum borrowing capacity | $ 150,000 | |||||||||||
Line of credit facility increase | $ 500,000 | |||||||||||
Credit spread adjustment rate | 2.25 | |||||||||||
Credit facility initial advance rate | 75% | |||||||||||
Credit facility outstanding balance | $ 0 | $ 0 | ||||||||||
Acquisition Facility | Secured Overnight Financing Rate (SOFR) | ||||||||||||
Repurchase Agreement Counterparty [Line Items] | ||||||||||||
Debt instrument, variable interest rate basis | one-month term | |||||||||||
Debt instrument basis spread on variable rate | 0.10% | |||||||||||
Repurchase Agreements | Minimum | ||||||||||||
Repurchase Agreement Counterparty [Line Items] | ||||||||||||
Debt instrument repurchase guaranteed percentage | 25% | 25% | ||||||||||
Repurchase Agreements | Maximum | ||||||||||||
Repurchase Agreement Counterparty [Line Items] | ||||||||||||
Debt instrument repurchase guaranteed percentage | 50% | 50% | ||||||||||
Real Estate Investment | ||||||||||||
Repurchase Agreement Counterparty [Line Items] | ||||||||||||
Principal payments | $ 10,000 | |||||||||||
Senior mortgage amount | $ 300,000 | |||||||||||
Contractual Maturity Date | Feb. 09, 2024 | |||||||||||
Debt instrument, Fee amount | $ 7,600 | |||||||||||
Interest expense | 6,300 | |||||||||||
General and administrative expenses | 1,100 | |||||||||||
Debt issuance costs | $ 200 |
Repurchase Agreements, Loan P_9
Repurchase Agreements, Loan Participations Sold, Net, Notes Payable, Net, Secured Term Loan, Net, Debt Related to Real Estate Owned, Net, and Acquisition Facility - Summary of Loan Participations Sold (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |||
Aug. 17, 2022 | Sep. 30, 2022 | Dec. 31, 2021 | |||
Loan Participations Sold [Line Items] | |||||
Contractual Maturity Date | Jun. 26, 2026 | ||||
Borrowing Outstanding | $ 264,252 | $ 168,322 | |||
Carrying Value | 263,656 | 167,744 | |||
Loan held by company | $ 622,893 | [1] | $ 420,844 | ||
Variable Loan One | |||||
Loan Participations Sold [Line Items] | |||||
Contractual Maturity Date | Aug. 01, 2023 | Aug. 01, 2022 | |||
Maximum Extension Date | Aug. 01, 2023 | Aug. 01, 2023 | |||
Borrowing Outstanding | $ 138,322 | $ 148,322 | |||
Carrying Value | 138,322 | 148,133 | |||
Loan held by company | $ 280,983 | [1] | $ 290,783 | ||
Variable Loan Two | |||||
Loan Participations Sold [Line Items] | |||||
Contractual Maturity Date | Oct. 18, 2023 | ||||
Maximum Extension Date | Oct. 18, 2024 | ||||
Borrowing Outstanding | $ 105,930 | ||||
Carrying Value | 105,559 | ||||
Loan held by company | [1] | $ 192,282 | |||
Fixed Loan | |||||
Loan Participations Sold [Line Items] | |||||
Contractual Maturity Date | Dec. 31, 2024 | Dec. 31, 2024 | |||
Maximum Extension Date | Dec. 31, 2025 | Dec. 31, 2025 | |||
Borrowing Outstanding | $ 20,000 | $ 20,000 | |||
Carrying Value | 19,775 | 19,611 | |||
Loan held by company | $ 149,628 | [1] | $ 130,061 | ||
[1] Includes cash reserve balances. |
Repurchase Agreements, Loan _10
Repurchase Agreements, Loan Participations Sold, Net, Notes Payable, Net, Secured Term Loan, Net, Debt Related to Real Estate Owned, Net, and Acquisition Facility - Summary of Notes Payable (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | ||||
Aug. 17, 2022 | Sep. 30, 2022 | Dec. 31, 2021 | ||||
Debt Instrument [Line Items] | ||||||
Contractual Maturity Date | Jun. 26, 2026 | |||||
Carrying Value | $ 263,656 | $ 167,744 | ||||
Loan held by company | $ 622,893 | [1] | $ 420,844 | |||
Notes Payable One | ||||||
Debt Instrument [Line Items] | ||||||
Contractual Maturity Date | Dec. 31, 2024 | |||||
Maximum Extension Date | Dec. 31, 2025 | |||||
Borrowing Outstanding | $ 103,592 | |||||
Carrying Value | 102,327 | |||||
Loan held by company | $ 149,628 | |||||
Notes Payable Two | ||||||
Debt Instrument [Line Items] | ||||||
Contractual Maturity Date | Jun. 30, 2025 | |||||
Maximum Extension Date | Jun. 30, 2026 | |||||
Borrowing Outstanding | $ 4,777 | |||||
Carrying Value | 4,348 | |||||
Loan held by company | $ 7,137 | |||||
Notes Payable Three | ||||||
Debt Instrument [Line Items] | ||||||
Contractual Maturity Date | Feb. 02, 2026 | |||||
Maximum Extension Date | Feb. 02, 2027 | |||||
Borrowing Outstanding | $ 19,395 | |||||
Carrying Value | 18,400 | |||||
Loan held by company | $ 23,225 | |||||
Notes Payable Four | ||||||
Debt Instrument [Line Items] | ||||||
Contractual Maturity Date | Sep. 02, 2026 | |||||
Maximum Extension Date | Sep. 02, 2027 | |||||
Carrying Value | $ (1,234) | |||||
Loan held by company | (1,763) | |||||
Notes Payable [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Contractual Maturity Date | [2],[3] | Jan. 04, 2022 | ||||
Maximum Extension Date | Jan. 04, 2022 | |||||
Borrowing Outstanding | 127,764 | $ 48,000 | ||||
Carrying Value | 123,841 | 48,000 | ||||
Loan held by company | $ 178,227 | $ 116,512 | [3] | |||
[1] Includes cash reserve balances. In January 2022, the initial maturity was extended to July 5, 2022 and the maximum maturity date was extended to January 4, 2023. Includes all reserve balances held by servicer. |
Repurchase Agreements, Loan _11
Repurchase Agreements, Loan Participations Sold, Net, Notes Payable, Net, Secured Term Loan, Net, Debt Related to Real Estate Owned, Net, and Acquisition Facility - Summary of Secured Term Loan (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |||
Aug. 17, 2022 | Sep. 30, 2022 | Dec. 31, 2021 | |||
Secured Term Loan [Line Items] | |||||
Contractual Maturity Date | Jun. 26, 2026 | ||||
Carrying Value | $ 263,656 | $ 167,744 | |||
Secured Term Loan | |||||
Secured Term Loan [Line Items] | |||||
Contractual Maturity Date | Aug. 09, 2026 | Aug. 09, 2026 | |||
Stated | S + 4.50% | [1] | S + 4.50% | [2] | |
Debt Instrument Interest Rate | 7.64% | 5% | |||
Borrowing Outstanding | $ 756,997 | $ 762,717 | |||
Carrying Value | $ 737,516 | $ 739,762 | |||
[1] One-month term SOFR at September 30, 2022 was 3.04 % . One-month term SOFR at December 31, 2021 was 0.05 % . |
Repurchase Agreements, Loan _12
Repurchase Agreements, Loan Participations Sold, Net, Notes Payable, Net, Secured Term Loan, Net, Debt Related to Real Estate Owned, Net, and Acquisition Facility - Summary of Secured Term Loan (Parenthetical) (Details) - Secured Overnight Financing Rate (SOFR) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Secured Term Loan [Line Items] | ||
One month LIBOR/ SOFR rate | 3.04% | |
Secured Term Loan | ||
Secured Term Loan [Line Items] | ||
One month LIBOR/ SOFR rate | 3.04% | 0.05% |
Repurchase Agreements, Loan _13
Repurchase Agreements, Loan Participations Sold, Net, Notes Payable, Net, Secured Term Loan, Net, Debt Related to Real Estate Owned, Net, and Acquisition Facility - Summary of Debt Related To Real Estate Owned (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |||
Aug. 17, 2022 | Sep. 30, 2022 | Dec. 31, 2021 | |||
Debt Instrument Real Estate Owned Net [Line Items] | |||||
Contractual Maturity Date | Jun. 26, 2026 | ||||
Carrying Value | $ 263,656 | $ 167,744 | |||
Real Estate Investment | |||||
Debt Instrument Real Estate Owned Net [Line Items] | |||||
Contractual Maturity Date | Feb. 09, 2024 | Feb. 09, 2024 | |||
Stated | L + 2.78% | [1] | L + 2.78% | [2] | |
Debt Instrument Interest Rate | 5.78% | 3.53% | |||
Borrowing Outstanding | $ 290,000 | $ 290,000 | |||
Carrying Value | $ 289,258 | $ 289,806 | |||
[1] One-month LIBOR at September 30, 2022 was 3.14 % , which exceeded the 3.00 % ceiling provided by our interest rate cap. See Note 7 - Derivatives for further detail of our interest rate cap. One-month LIBOR at December 31, 2021 was 0.10 % . |
Repurchase Agreements, Loan _14
Repurchase Agreements, Loan Participations Sold, Net, Notes Payable, Net, Secured Term Loan, Net, Debt Related to Real Estate Owned, Net, and Acquisition Facility - Summary of Debt Related To Real Estate Owned (Parenthetical) (Details) - Real Estate Investment | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Interest Rate Cap | ||
Debt Instrument Real Estate Owned Net [Line Items] | ||
One month LIBOR/ SOFR rate | 3% | |
One Month L I B O R | ||
Debt Instrument Real Estate Owned Net [Line Items] | ||
One month LIBOR/ SOFR rate | 3.14% | 0.10% |
Repurchase Agreements, Loan _15
Repurchase Agreements, Loan Participations Sold, Net, Notes Payable, Net, Secured Term Loan, Net, Debt Related to Real Estate Owned, Net, and Acquisition Facility - Summary of Interest Expense and Amortization (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | ||
Securities Loaned and Securities Sold under Agreement to Repurchase, Gross Including Not Subject to Master Netting Arrangement [Abstract] | |||||
Interest on secured financings | $ 49,893 | $ 28,401 | $ 107,051 | $ 86,990 | |
Interest on secured term loan | 13,052 | 11,749 | 32,910 | 34,954 | |
Interest on debt related to real estate owned | [1] | 3,903 | 2,640 | 9,206 | 13,001 |
Amortization of financing costs | 5,040 | 5,280 | 14,475 | 16,243 | |
Total interest and related expense | $ 71,888 | $ 48,070 | $ 163,642 | $ 151,188 | |
[1] Interest on debt related to real estate owned includes $ 131,000 and $ 22,000 of amortization of financing costs for the three months ended September 30, 2022 and 2021 , respectively. Interest on debt related to real estate owned includes $ 176,000 and $ 34,000 of amortization of financing costs for the nine months ended September 30, 2022 and 2021 , respectively. |
Repurchase Agreements, Loan _16
Repurchase Agreements, Loan Participations Sold, Net, Notes Payable, Net, Secured Term Loan, Net, Debt Related to Real Estate Owned, Net, and Acquisition Facility - Summary of Interest Expense and Amortization (Parenthetical) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Securities Loaned and Securities Sold under Agreement to Repurchase, Gross Including Not Subject to Master Netting Arrangement [Abstract] | ||||
Amortization of financing costs included in Interest on debt related to real estate owned | $ 131,000 | $ 22,000 | $ 176,000 | $ 34,000 |
Fair Value Measurements Additio
Fair Value Measurements Additional Information (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Level 2 [Member] | Interest Rate Cap [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value amount | $ 5.6 | $ 0 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Financial Instruments Measured at Carrying And Estimated Fair Value (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Loans receivable held-for-investment, net | $ 7,270,223 | $ 6,340,295 |
Interests in loans receivable held-for- investment, net | 161,850 | |
Repurchase agreements | 3,993,720 | 3,489,511 |
Loan participations sold, net | 263,656 | 167,744 |
Notes payable, net | 123,841 | 48,000 |
Secured term loan, net | 737,516 | 739,762 |
Debt related to real estate owned, net | 289,258 | 289,806 |
Unpaid Principal Balance [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Loans receivable held-for-investment, net | 7,380,506 | 6,441,238 |
Interests in loans receivable held-for- investment, net | 161,566 | |
Repurchase agreements | 3,993,720 | 3,489,511 |
Loan participations sold, net | 264,252 | 168,322 |
Notes payable, net | 127,764 | 48,000 |
Secured term loan, net | 756,997 | 762,717 |
Debt related to real estate owned, net | 290,000 | 290,000 |
Fair Value [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Loans receivable held-for-investment, net | 7,244,522 | 6,434,157 |
Interests in loans receivable held-for- investment, net | 161,883 | |
Repurchase agreements | 3,993,720 | 3,484,834 |
Loan participations sold, net | 260,619 | 168,738 |
Notes payable, net | 126,820 | 48,000 |
Secured term loan, net | 724,825 | 762,717 |
Debt related to real estate owned, net | 280,040 | 281,723 |
Level 3 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Loans receivable held-for-investment, net | 7,244,522 | 6,434,157 |
Interests in loans receivable held-for- investment, net | 161,883 | |
Repurchase agreements | 3,993,720 | 3,484,834 |
Loan participations sold, net | 260,619 | 168,738 |
Notes payable, net | 126,820 | 48,000 |
Secured term loan, net | 724,825 | 762,717 |
Debt related to real estate owned, net | $ 280,040 | $ 281,723 |
Derivatives - Additional Inform
Derivatives - Additional Information (Details) - Interest Rate Cap - USD ($) | Jun. 02, 2021 | Sep. 30, 2022 |
Derivatives Fair Value Line Items | ||
Derivative liability notional amount | $ 290 | |
Derivative maturity date | Feb. 15, 2024 | |
Derivative notional amount | $ 275,000 | |
Fair value of interest rate cap | $ 5,600,000 | |
Maximum | ||
Derivatives Fair Value Line Items | ||
Maximum interest rate of debt related to real estate owned | 5.78% |
Equity - Additional Information
Equity - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | 10 Months Ended | |||
Sep. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Dec. 31, 2020 | |
Class Of Stock [Line Items] | ||||
Common stock authorized | 500,000,000 | 500,000,000 | ||
Common stock par value | $ 0.01 | $ 0.01 | ||
Common stock, shares issued | 140,055,714 | 140,055,714 | ||
Common stock outstanding | 138,970,498 | 139,840,088 | ||
Common Stock [Member] | ||||
Class Of Stock [Line Items] | ||||
Common stock authorized | 500,000,000 | |||
Common stock par value | $ 0.01 | |||
Common stock, shares issued | 140,055,714 | 140,055,714 | ||
Common stock outstanding | 138,970,498 | 139,840,088 | 133,433,487 | 132,848,720 |
Amount of common stock shares purchased in open market | $ 25 | |||
Stock Repurchased During Period, Shares | 1,085,216 | |||
Average price per share | $ 16.09 | |||
Repurchase value | $ 17.5 |
Equity -Schedule of Common Stoc
Equity -Schedule of Common Stock Outstanding (Details) - shares | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Class Of Stock [Line Items] | ||
Beginning balance | 139,840,088 | |
Ending balance | 138,970,498 | |
Common Stock [Member] | ||
Class Of Stock [Line Items] | ||
Beginning balance | 139,840,088 | 132,848,720 |
Conversion of fully vested restricted stock units to common shares | 584,767 | |
Repurchase of common shares | (869,590) | |
Ending balance | 138,970,498 | 133,433,487 |
Equity - Summary of Dividends D
Equity - Summary of Dividends Declared For Common And Preferred Stock (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | ||||||
Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | ||
Class Of Stock [Line Items] | |||||||
Dividends declared - common stock | $ 51,672 | ||||||
Dividends declared - preferred stock | $ 4 | $ 4 | $ 4 | ||||
Record Date - common stock | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 17, 2021 | Jun. 16, 2021 | Mar. 19, 2021 | |
Payment Date - common stock | Oct. 14, 2022 | Jul. 15, 2022 | Apr. 15, 2022 | Oct. 07, 2021 | Jul. 07, 2021 | Apr. 01, 2021 | |
Common Stock [Member] | |||||||
Class Of Stock [Line Items] | |||||||
Dividends declared - common stock | $ 51,419 | $ 51,659 | $ 51,672 | $ 50,000 | $ 50,000 | $ 50,000 | |
Dividends declared - common stock per share | $ 0.37 | $ 0.37 | $ 0.37 | $ 0.37 | $ 0.37 | $ 0.37 | |
Preferred Stock [Member] | |||||||
Class Of Stock [Line Items] | |||||||
Dividends declared - preferred stock | [1] | $ 4 | $ 4 | $ 4 | |||
Dividends declared - preferred stock per share | [1] | $ 0.03 | $ 0.03 | $ 0.03 | |||
[1] Includes 125 preferred units issued at a price of $ 1,000 per unit and entitled to a 12.50 % dividend paid semi-annually that were redeemed on December 15, 2021 at a price of $ 1,000 per unit. |
Equity - Summary of Dividends_2
Equity - Summary of Dividends Declared For Common And Preferred Stock (Parenthetical) (Details) | Dec. 15, 2021 $ / shares shares |
Equity [Abstract] | |
Preferred stock, shares issued | shares | 125 |
Preferred stock, per shares | $ 1,000 |
Preferred stock dividend rate | 12.50% |
Preferred stock, redemption price per share | $ 1,000 |
Earnings per Share - Additional
Earnings per Share - Additional Information (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Dilutive securities | 0 | 0 | ||
Weighted Average Unvested RSUs | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Dilutive securities | 2,159,280 | 0 | 863,524 | 0 |
Earnings per Share - Schedule o
Earnings per Share - Schedule of Basic and Diluted Earning per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Earnings Per Share [Abstract] | ||||
Net income attributable to common stockholders | $ 42,071 | $ 52,877 | $ 134,717 | $ 153,506 |
Dividends on participating securities | (799) | (1,598) | ||
Basic earnings | $ 41,272 | $ 52,877 | $ 133,119 | $ 153,506 |
Weighted-average shares of common stock outstanding - basic | 139,430,153 | 133,433,487 | 139,592,500 | 133,491,390 |
Weighted-average shares of common stock outstanding - diluted | 139,430,153 | 133,433,487 | 139,592,500 | 133,491,390 |
Net income per share of common stock - basic | $ 0.30 | $ 0.40 | $ 0.95 | $ 1.15 |
Net income per share of common stock - diluted | $ 0.30 | $ 0.40 | $ 0.95 | $ 1.15 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Related Party Transaction [Line Items] | |||||
Management agreement expiration date | Aug. 25, 2025 | ||||
Annual base management fee percentage | 1.50% | ||||
Base management fee payable to affiliate | $ 9,928,000 | $ 9,928,000 | $ 9,983,000 | ||
Management fees - affiliate | 9,944,000 | $ 9,789,000 | $ 29,594,000 | $ 29,152,000 | |
Management fee, description | Effective October 1, 2015, the Manager earns a base management fee in an amount equal to 1.50% per annum of Stockholders’ Equity. Management fees are reduced by our pro rata share of any management fees and incentive fees (if incentive fees are not incurred by us) paid to the Manager by CMTG/TT. Management fees are paid quarterly, in arrears. Management fees of $9.9 million and $10.0 million were accrued and were included in management fee payable – affiliate, in the consolidated balance sheets at September 30, 2022 and December 31, 2021. On August 2, 2022 our Management Agreement was amended and restated, primarily to provide for reimbursement of allocable costs, including compensation of the Manager’s non-investment professionals, to provide for automatic one-year renewals of the agreement following its original expiration date, unless it is otherwise terminated by our Board, and to remove historical provisions that are no longer relevant to our business and certain reporting requirements that are not customary for a public company. | ||||
Incentive fee rate | 20% | ||||
Minimum percentage of incentive fee to be paid in return on stockholders’ equity | 7% | ||||
Incentive fees, description | The Manager is entitled to an incentive fee equal to 20% of the excess of our Core Earnings on a rolling four-quarter basis, as defined in the Management Agreement, over a 7.00% return on Stockholders’ Equity, as defined in the Management Agreement of the Company. Incentive fees are reduced by our pro rata share of any incentive fees paid to the Manager by CMTG/TT. | ||||
Incentive fee payable to affiliate | 0 | $ 0 | 0 | ||
Termination fee, description | If we elect to terminate the Management Agreement, we are required to pay the Manager a termination fee equal to three times the sum of the average total annual amount of management fees and the average annual incentive fee paid by us over the prior two years. | ||||
Outstanding principal balance | 92,800,000 | $ 92,800,000 | $ 54,000,000 | ||
Loan commitment | $ 141,100,000 | $ 141,100,000 | |||
Affiliate Shareholder | |||||
Related Party Transaction [Line Items] | |||||
Common Stock Outstanding | 10.90% | 10.90% | |||
Reimbursements | |||||
Related Party Transaction [Line Items] | |||||
General and administrative expense | $ 300,000 | $ 0 | $ 400,000 | $ 200,000 | |
CMTG/TT | |||||
Related Party Transaction [Line Items] | |||||
Incentive fee rate | 3.33% | ||||
Minimum percentage of incentive fee to be paid in return on stockholders’ equity | 7% |
Related Party Transactions - Su
Related Party Transactions - Summary of Management and Incentive Fees (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Related Party Transactions [Abstract] | ||||
Management fees - affiliate | $ 9,944 | $ 9,789 | $ 29,594 | $ 29,152 |
Total | $ 9,944 | $ 9,789 | $ 29,594 | $ 29,152 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||
Jun. 14, 2022 | Jun. 01, 2022 | Apr. 04, 2021 | Apr. 04, 2019 | Jan. 01, 2019 | Mar. 30, 2016 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||
Unrecognized compensation expense | $ 36,400,000 | $ 36,400,000 | ||||||||||
Unrecognized compensation expense expected to recognized over a remaining period | 2 years 8 months 12 days | |||||||||||
Time-based Restricted Stock Units | ||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||
Shares granted | 877,498 | 2,159,280 | ||||||||||
Weighted average grant-date fair value per share | $ 20 | |||||||||||
Shares forfeitures | 292,731 | |||||||||||
Shares vested | 584,767 | |||||||||||
Time-based Restricted Stock Units | Other Income | ||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||
Stock-Based compensation | $ 5,900,000 | |||||||||||
Time-based Restricted Stock Units | Non-Employee Board Members | ||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||
Shares granted | 29,280 | 29,280 | ||||||||||
Weighted average grant-date fair value per share | $ 20.49 | |||||||||||
Vesting period (in years) | 1 year | |||||||||||
Time-based Restricted Stock Units | Employees | ||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||
Shares granted | 2,130,000 | |||||||||||
Weighted average grant-date fair value per share | $ 18.72 | |||||||||||
Performance-based Restricted Stock Units | ||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||
Reversal of Share Based Compensation Expense | $ 200,000 | $ 400,000 | ||||||||||
Shares granted | 1,622,499 | |||||||||||
Weighted average grant-date fair value per share | $ 20 | $ 20 | ||||||||||
Shares forfeitures | 525,206 | |||||||||||
Shares vested | 1,097,293 | |||||||||||
Vesting period (in years) | 3 years | |||||||||||
Minimum shareholder return percentage | 18% | |||||||||||
Shareholder return per share | $ 19.84 | |||||||||||
Dividend Equivalents Payable | $ 4,900,000 | |||||||||||
RSUs | ||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||
Stock-Based compensation | 3,400,000 | $ 4,000,000 | ||||||||||
RSUs | Non-Employee Board Members | ||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||
Maximum number of shares issued under the plan | 2,894 | |||||||||||
Stock-Based compensation | $ 49,000 | $ 49,000 | ||||||||||
Maximum | Performance-based Restricted Stock Units | ||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||
Vesting percentage | 100% | |||||||||||
Minimum | Performance-based Restricted Stock Units | ||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||
Vesting percentage | 0% | |||||||||||
2016 Incentive Award Plan | Maximum | ||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||||
Maximum number of shares issued under the plan | 8,281,594 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Time-Based Restricted Stock Units Activity (Details) - $ / shares | 9 Months Ended | ||
Apr. 04, 2019 | Sep. 30, 2022 | Sep. 30, 2021 | |
Time-based Restricted Stock Units | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of Restricted Shares, Granted | 877,498 | 2,159,280 | |
Number of Restricted Shares, Forfeited/cancelled | (292,731) | ||
Number of Restricted Shares, Unvested ending balance | 2,159,280 | ||
Weighted-Average Grant Date Fair Value Per Share, Unvested Granted | $ 18.74 | ||
Weighted-Average Grant Date Fair Value Per Share, Unvested ending balance | $ 18.74 | ||
Performance-based Restricted Stock Units | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of Restricted Shares, Unvested beginning balance | 1,622,499 | ||
Number of Restricted Shares, Granted | 1,622,499 | ||
Number of Restricted Shares, Forfeited/cancelled | (525,206) | ||
Number of Restricted Shares, Unvested ending balance | 1,097,293 | ||
Weighted-Average Grant Date Fair Value Per Share, Unvested beginning balance | $ 20 | ||
Weighted-Average Grant Date Fair Value Per Share, Unvested Forfeited/cancelled | 20 | ||
Weighted-Average Grant Date Fair Value Per Share, Unvested ending balance | $ 20 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Schedule Of Income Loss Before Income Taxes [Line Items] | |||||
Uncertain tax positions | $ 0 | $ 0 | $ 0 | ||
TRS [Member] | |||||
Schedule Of Income Loss Before Income Taxes [Line Items] | |||||
Percentage of REIT taxable income | 90% | 90% | |||
Percentage of REITs flexibility to hold up to total assets | 20% | ||||
Current income tax benefit | 0 | $ 0 | |||
Deferred income tax benefit | 0 | $ 0 | 0 | $ 6,000,000 | |
Net deferred tax liabilities | $ 0 | $ 0 | $ 0 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Loss Contingencies [Line Items] | ||
Return of capital distribution from CMTG/CN Mortgage REIT LLC | $ 123.6 | $ 111.1 |
Loan Commitments Refunded | $ 1,800 | $ 1,100 |
Maximum | ||
Loss Contingencies [Line Items] | ||
Lease Expiration Period | 5 years | 5 years |
Claros Mortgage Trust | ||
Loss Contingencies [Line Items] | ||
Commitment Interest | 51% | |
Commitment Amount | $ 124.9 | |
Loan Repayment Period | 6 months | |
Company Contribution Amount | $ 163.1 | $ 162.1 |
Remaining capital commitment | $ 72.9 | $ 73.8 |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of Contractual Maturity Payment (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |||
2022 | $ 1,907 | ||
2023 | [1] | 386,660 | |
2024 | 1,077,086 | ||
2025 | 730,406 | ||
2026 and thereafter | 3,236,674 | ||
Long-term Debt | $ 5,432,733 | $ 4,758,550 | |
[1] Assumes two loans with aggregate borrowings outstanding of $ 75.2 million that are in maturity default have an extended maturity date in 2023. |
Commitments and Contingencies_3
Commitments and Contingencies - Schedule of Contractual Maturity Payment (Parenthetical) (Details) $ in Thousands | Sep. 30, 2022 USD ($) Loan | Dec. 31, 2021 USD ($) |
Loss Contingencies [Line Items] | ||
Borrowing Outstanding | $ 5,432,733 | $ 4,758,550 |
Extended Maturity Date in 2023 | ||
Loss Contingencies [Line Items] | ||
Borrowing Outstanding | $ 75,200 | |
Number of loans outstanding | Loan | 2 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) | 9 Months Ended | ||
Nov. 08, 2022 USD ($) | Aug. 02, 2022 USD ($) Loan | Sep. 30, 2022 USD ($) Loan | |
Subsequent Event [Line Items] | |||
Number of floating rate loans originated/acquired | Loan | 2 | ||
Aggregate loan commitments at floating rate | $ 246,500,000 | ||
Aggregate loan commitments at floating rate | $ 34,400,000 | ||
Number of loans repayment received | Loan | 2 | ||
Repayment of loans unpaid principal amount | $ 20,300,000 | ||
Line of credit, maximum borrowing capacity | $ 141,100,000 | ||
Subsequent Event | Maximum | |||
Subsequent Event [Line Items] | |||
Amount authorized under share repurchase program | $ 100,000,000 | ||
Subsequent Event | Master Participation and Administration Agreement | Mortgage Loans | |||
Subsequent Event [Line Items] | |||
Line of credit, maximum borrowing capacity | 1,000,000,000 | ||
Credit facility, committed amount | $ 400,000,000 | ||
Maturity period | 5 years |