Document And Entity Information
Document And Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2022 | Feb. 16, 2023 | Jun. 30, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2022 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | CMTG | ||
Entity Registrant Name | Claros Mortgage Trust, Inc. | ||
Entity Central Index Key | 0001666291 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Interactive Data Current | Yes | ||
Entity Shell Company | false | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 139,376,144 | ||
Entity Public Float | $ 1.3 | ||
ICFR Auditor Attestation Flag | true | ||
Title of 12(b) Security | Common Stock, $0.01 par value per share | ||
Entity File Number | 001-40993 | ||
Entity Incorporation, State or Country Code | MD | ||
Entity Tax Identification Number | 47-4074900 | ||
Security Exchange Name | NYSE | ||
Entity Address, Address Line One | c/o Mack Real Estate Credit Strategies, L.P. | ||
Entity Address, Address Line Two | 60 Columbus Circle | ||
Entity Address, Address Line Three | 20th Floor | ||
Entity Address, City or Town | New York | ||
Entity Address, State or Province | NY | ||
Entity Address, Postal Zip Code | 10023 | ||
City Area Code | 212 | ||
Local Phone Number | 484-0050 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Documents Incorporated by Reference [Text Block] | Portions of the definitive proxy statement to be filed with the Securities and Exchange Commission (“SEC”) pursuant to Regulation 14A relating to the registrant’s 2023 Annual Meeting of Stockholders will be incorporated by reference in this Form 10-K in response to Items 10, 11, 12, 13 and 14 of Part III. The definitive proxy statement will be filed with the SEC no later than 120 days after the registrant’s fiscal year end. | ||
Auditor Firm ID | 238 | ||
Auditor Name | PricewaterhouseCoopers LLP | ||
Auditor Location | Boston, Massachusetts |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | ||
Assets | ||||
Cash and cash equivalents | $ 306,456 | $ 310,194 | ||
Restricted cash | 41,703 | 23,942 | ||
Loan principal payments held by servicer | 154,600 | |||
Loans receivable held-for-investment | 7,489,074 | 6,407,305 | ||
Less: current expected credit loss reserve | (128,647) | (67,010) | ||
Loans receivable held-for-investment, net | 7,360,427 | [1] | 6,340,295 | [2] |
Equity method investment | 41,880 | |||
Interests in loans receivable held-for-investment, net | 161,850 | |||
Real estate owned, net | 401,189 | 406,887 | ||
Other assets | 89,858 | 57,503 | ||
Total assets | 8,241,513 | 7,455,271 | ||
Liabilities and Stockholders' Equity | ||||
Repurchase agreements | 3,966,859 | 3,489,511 | ||
Term participation facility | 257,531 | |||
Loan participations sold, net | 263,798 | 167,744 | ||
Notes payable, net | 149,521 | 48,000 | ||
Secured term loan, net | 736,853 | 739,762 | ||
Debt related to real estate owned, net | 289,389 | 289,806 | ||
Other liabilities | 59,223 | 54,457 | ||
Dividends payable | 52,001 | 51,741 | ||
Management fee payable - affiliate | 9,867 | 9,983 | ||
Total liabilities | 5,785,042 | 4,851,004 | ||
Commitments and contingencies - Note 14 | ||||
Stockholders' Equity | ||||
Common stock, $0.01 par value, 500,000,000 shares authorized, 140,055,714 and140,055,714 shares issued and 138,376,144 and 139,840,088 shares outstanding at December 31, 2022 and 2021, respectively | 1,400 | 1,400 | ||
Additional paid-in capital | 2,712,316 | 2,726,190 | ||
Accumulated deficit | (257,245) | (160,959) | ||
Total Claros Mortgage Trust, Inc. equity | 2,456,471 | 2,566,631 | ||
Non-controlling interests | 37,636 | |||
Total stockholders' equity | 2,456,471 | 2,604,267 | ||
Total liabilities and stockholders' equity | $ 8,241,513 | $ 7,455,271 | ||
[1] Net of specific CECL reserve of $ 60.3 million. Net of specific CECL reserve of $ 6.3 million. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 15, 2021 |
Statement of Financial Position [Abstract] | |||
Preferred stock, shares issued | 125 | ||
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 | 138,376,144 | 139,840,088 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Revenue | ||||
Interest and related income | $ 470,668 | $ 415,263 | $ 445,940 | |
Less: interest and related expense | 246,937 | 180,589 | 172,232 | |
Net interest income | 223,731 | 234,674 | 273,708 | |
Revenue from real estate owned | 63,470 | 27,984 | ||
Total revenue | 287,201 | 262,658 | 273,708 | |
Expenses | ||||
Management fees - affiliate | 39,461 | 39,135 | 38,960 | |
Incentive fees - affiliate | 7,766 | |||
General and administrative expenses | 18,686 | 12,591 | 9,004 | |
Stock-based compensation expense | 7,457 | 8,812 | 5,670 | |
Real estate owned: | ||||
Operating expenses | 41,982 | 25,081 | ||
Interest expense | 14,170 | 15,643 | ||
Depreciation | 8,041 | 7,113 | ||
Total expenses | 129,797 | 108,375 | 61,400 | |
Realized gain (loss) on sale of loan | 30,090 | (141) | (640) | |
Proceeds from interest rate cap | 495 | |||
Unrealized gain on interest rate cap | 6,042 | |||
Gain on foreclosure of real estate owned | 1,430 | |||
Income from equity method investment | 2,485 | |||
Other income | 5,855 | |||
(Provision for) reversal of current expected credit loss | (84,361) | 8,962 | (6,000) | |
Net income | 112,155 | 170,389 | 205,668 | |
Net (loss) income attributable to non-controlling interests | 91 | (164) | 3,259 | |
Net income attributable to preferred stock | 16 | 31 | ||
Net income attributable to common stock and redeemable common stock | $ 112,064 | $ 170,537 | $ 202,378 | |
Net income per share of common stock and redeemable common stock | ||||
Basic | $ 0.79 | $ 1.27 | $ 1.52 | |
Diluted | $ 0.79 | $ 1.27 | $ 1.52 | |
Weighted-average shares of common stock and redeemable common stock outstanding | ||||
Basic | [1] | 139,306,311 | 134,539,645 | 132,980,316 |
Diluted | [1] | 139,306,311 | 134,539,645 | 132,980,316 |
[1] Amounts at December 31, 2020 include fully vested RSUs, which includes 877,498 common stock underlying vested RSUs. Amounts at December 31, 2022 include fully vested RSUs, which include 6,850 common stock underlying vested RSUs. |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders Equity - USD ($) $ in Thousands | Total | Cumulative Effect Period of Adoption Adjustment [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 Interest [Member] | Redeemable Common Stock [Member] | Redeemable Common Stock [Member] Cumulative Effect Period of Adoption Adjustment [Member] |
Balance at Dec. 31, 2019 | $ 2,431,072 | $ 250 | $ 1,220 | $ 2,417,375 | $ (34,308) | $ 46,535 | |||||
Balance (in shares) at Dec. 31, 2019 | 250 | 122,041,736 | |||||||||
Balance at Dec. 31, 2019 | $ 141,735 | ||||||||||
Issuance of common stock | 70,000 | $ 35 | 69,965 | ||||||||
Issuance of common stock (in shares) | 3,500,000 | ||||||||||
Redemption of preferred stock | (125) | $ (125) | |||||||||
Redemption of preferred stock (in shares) | (125) | ||||||||||
Stock-based compensation expense | 5,808 | 5,808 | |||||||||
Contributions from non-controlling interests | 1,029 | 1,029 | |||||||||
Offering costs | (916) | (916) | (53) | ||||||||
Dividends declared | (204,465) | $ (31) | (204,434) | (11,830) | |||||||
Distributions to non-controlling interests | (15,537) | (15,537) | |||||||||
Accretion of redeemable common stock | (396) | (396) | 396 | ||||||||
Net income (loss) | 194,560 | 31 | 191,270 | 3,259 | 11,108 | ||||||
Balance at Dec. 31, 2020 | 2,481,030 | $ 125 | $ 1,255 | 2,491,836 | (47,472) | 35,286 | 141,356 | ||||
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 | |||||||||
Issuance of common stock | 103,040 | $ 72 | 102,968 | ||||||||
Issuance of common stock (in shares) | 7,206,994 | ||||||||||
Redemption of preferred stock | (125) | $ (125) | |||||||||
Redemption of preferred stock (in shares) | (125) | ||||||||||
Stock-based compensation expense | 2,929 | 2,929 | |||||||||
Repurchased shares | (3,602) | (3,602) | |||||||||
Repurchase of common stock | (215,626) | (215,626) | |||||||||
Contributions from non-controlling interests | 2,514 | 2,514 | |||||||||
Offering costs | (11,824) | (11,824) | (14) | ||||||||
Dividends declared | (194,961) | $ (16) | 194,945 | (8,214) | |||||||
Accretion of redeemable common stock | (1) | (1) | 1 | ||||||||
Conversion of Temporary Equity to Permanent Equity | 138,081 | $ 73 | 143,883 | (5,875) | (138,081) | ||||||
Conversion of temporary equity to permanent equity (Shares) | 7,306,984 | ||||||||||
Net income (loss) | 161,161 | $ 16 | 161,309 | (164) | 9,228 | ||||||
Balance at Dec. 31, 2021 | 2,604,267 | $ 1,400 | 2,726,190 | (160,959) | 37,636 | ||||||
Balance (in shares) at Dec. 31, 2021 | 140,055,714 | (215,626) | |||||||||
Balance at Dec. 31, 2021 | $ 0 | ||||||||||
Stock-based compensation expense | 7,554 | 7,554 | |||||||||
Repurchased shares | (21,398) | (21,398) | |||||||||
Repurchase of common stock | (1,463,944) | (1,463,944) | |||||||||
Contributions from non-controlling interests | 906 | 906 | |||||||||
Offering costs | (30) | (30) | |||||||||
Dividends declared | (208,350) | (208,350) | |||||||||
Net income (loss) | 112,155 | 112,064 | 91 | ||||||||
Deconsolidation of subsidiary | (38,633) | $ (38,633) | |||||||||
Balance at Dec. 31, 2022 | $ 2,456,471 | $ 1,400 | $ 2,712,316 | $ (257,245) | |||||||
Balance (in shares) at Dec. 31, 2022 | 140,055,714 | (1,679,570) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities | |||
Net income | $ 112,155 | $ 170,389 | $ 205,668 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Accretion of origination fees on loans receivable | (24,763) | (25,237) | (27,859) |
Accretion of origination fees on interests in loans receivable | (204) | (1,250) | (451) |
Amortization of financing costs | 20,454 | 21,307 | 19,638 |
Non-cash stock-based compensation expense | 7,554 | 8,812 | 5,670 |
Other income | (5,855) | ||
Depreciation on real estate owned | 8,041 | 7,113 | |
Unrealized gain on interest rate cap | (6,042) | ||
Income from equity method investment | (2,485) | ||
Distribution from equity method investment | 816 | ||
Realized gain on sale of loan | (30,090) | 141 | 640 |
Gain on foreclosure of real estate owned | (1,430) | ||
Non-cash advances on loans receivable in lieu of interest | (78,452) | (69,291) | (90,065) |
Non-cash advances on interests in loans receivable in lieu of interest | (2,427) | (18,733) | (13,782) |
Non-cash advances on secured financings in lieu of interest | 529 | 18,134 | 19,869 |
Repayment of non-cash advances on loans receivable in lieu of interest | 21,609 | 126,865 | 15,784 |
Repayment of non-cash advances on interests in loans receivable in lieu of interest | 13,178 | 27,903 | 1,566 |
Repayment of non-cash advances on secured financings in lieu of interest | (40,556) | (1,238) | |
Provision for (reversal of) current expected credit loss reserve | 84,361 | (8,962) | 6,000 |
Changes in operating assets and liabilities: | |||
Other assets | (25,757) | (602) | 921 |
Other liabilities | 12,602 | 4,862 | 206 |
Management fee payable - affiliate | (51) | 134 | 978 |
Incentive fee payable - affiliate | (187) | (3,050) | |
Net cash provided by operating activities | 111,028 | 213,557 | 140,495 |
Cash flows from investing activities | |||
Deconsolidation of subsidiary | (515) | ||
Loan originations, acquisitions and advances, net of fees | (2,597,799) | (2,924,699) | (791,667) |
Advances of interests in loans receivable | (14,653) | (101,767) | (118,582) |
Repayments of loans receivable | 1,539,364 | 2,312,184 | 535,565 |
Repayments of interests in loans receivable | 165,468 | 269,988 | 15,417 |
Extension and exit fees received from loans receivable | 6,625 | 9,269 | 2,048 |
Extension and exit fees received from interests in loans receivable | 502 | 265 | 453 |
Cash, cash equivalents and restricted cash acquired from foreclosure of properties | 9,580 | ||
Foreclosure of real estate owned | (11,463) | ||
Sale of loans receivable | 132,151 | 48,006 | 151,017 |
Reserves and deposits held for loans receivable | (2,102) | 15,441 | (3,112) |
Capital expenditures on real estate owned | (2,343) | ||
Net cash used in investing activities | (773,302) | (373,196) | (208,861) |
Cash flows from financing activities | |||
Proceeds from issuance of common stock | 103,040 | 70,000 | |
Repurchase of common stock | (21,398) | (3,602) | |
Redemption of preferred stock | (125) | (125) | |
Contributions from non-controlling interests | 906 | 2,514 | 1,029 |
Offering costs | (300) | (13,068) | (949) |
Dividends paid on common stock and restricted stock units | (208,090) | (196,712) | (207,569) |
Dividends paid on redeemable common stock | (8,214) | (12,431) | |
Dividends paid on preferred stock | (16) | (31) | |
Distributions to non-controlling interests | (15,537) | ||
Proceeds from secured financings | 2,248,013 | 1,997,562 | 817,159 |
Proceeds from secured term loan | 325,000 | ||
Payment of financing costs | (24,104) | (22,652) | (30,124) |
Payment of exit fees on secured financings | (864) | (138) | |
Repayments of secured financings | (1,311,103) | (1,779,225) | (779,641) |
Repayments of secured term loan | (7,627) | (5,837) | (5,321) |
Repayments of debt related to real estate owned | (10,000) | ||
Net cash provided by financing activities | 676,297 | 62,801 | 161,322 |
Net increase (decrease) in cash, cash equivalents and restricted cash | 14,023 | (96,838) | 92,956 |
Cash, cash equivalents and restricted cash, beginning of period | 334,136 | 430,974 | 338,018 |
Cash, cash equivalents and restricted cash, end of period | 348,159 | 334,136 | 430,974 |
Cash and cash equivalents, end of period | 306,456 | 310,194 | 427,512 |
Restricted cash, end of period | 41,703 | 23,942 | 3,462 |
Supplemental disclosure of cash flow information: | |||
Cash paid for interest | 227,631 | 158,729 | 131,579 |
Supplemental disclosure of non-cash investing and financing activities: | |||
Dividends Accrued | 52,001 | 51,741 | 53,480 |
Loan principal payments held by servicer | 154,600 | 12,980 | |
Accrued financing costs | 3,750 | 6,250 | 394 |
Accrued offering costs | 270 | $ 1,516 | |
Deposits applied against sale proceeds | 14,761 | ||
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 stock; common stock | 17 | ||
Conversion of restricted stock units to common stock; additional paid in capital | (17) | ||
Conversion of temporary equity to permanent equity; redeemable common stock | (138,081) | ||
Conversion of temporary equity to permanent equity; stockholder's equity | $ 138,081 |
Organization
Organization | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | Note 1. Organ ization 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 refers 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 | 12 Months Ended |
Dec. 31, 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”). We consolidate all entities that are controlled either through majority ownership or voting rights. We also identify entities for which control is achieved through means other than through voting rights (a variable interest entity or "VIE") using the analysis as set forth in Accounting Standards Codification ("ASC") 810, Consolidation of Variable Interest Entities and determines when and which variable interest holder, if any, should consolidate the VIE. We have no consolidated variable interest entities as of December 31, 2022 and 2021. All significant intercompany transactions and balances have been eliminated in consolidation. 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 current expected credit loss reserve and impairment of certain assets. Risks and Uncertainties In the normal course of business, we primarily encounter two significant types of economic risk: credit and market. Credit risk is the risk of default on our loans receivable that results from a borrower's or counterparty's inability or unwillingness to make contractually required payments. Market risk reflects changes in the value of the loans receivable due to changes in interest rates, spreads or other market factors, including risks that impact the value of the collateral underlying our investments. We believe that the carrying values of our loans receivable are reasonable taking into consideration these risks along with estimated financings, collateral values and other information. 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. COVID-19 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 raised interest rates in 2022 and has indicated that it foresees further interest rate increases in 2023. 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. On March 5, 2021, the Financial Conduct Authority of the U.K. (the “FCA”), which regulates LIBOR, announced (the “FCA Announcement”) that all relevant LIBOR tenors will cease to be published or will no longer be representative after June 30, 2023. The FCA Announcement coincides with the March 5, 2021 announcement of LIBOR’s administrator, the ICE Benchmark Administration Limited (the “IBA”), indicating that, as a result of not having access to input data necessary to calculate relevant LIBOR tenors on a representative basis after June 30, 2023, the IBA would have to cease publication of such LIBOR tenors immediately after the last publication on June 30, 2023. Further, on March 15, 2022, the Consolidated Appropriations Act of 2022, which includes the Adjustable Interest Rate (LIBOR) Act, was signed into law in the United States. This legislation establishes a uniform benchmark replacement process for financial contracts maturing after June 30, 2023 that do not contain clearly defined or practicable fallback provisions. The legislation also creates a safe harbor that shields lenders from litigation if they choose to utilize a replacement rate recommended by the Board of Governors of the Federal Reserve. The United States Federal Reserve has also advised banks to cease entering into new contracts that use USD LIBOR as a reference rate. The Federal Reserve, in conjunction with the Alternative Reference Rate Committee, a committee convened by the Federal Reserve that includes major market participants, has identified the Secured Overnight Financing Rate, or SOFR, a new index calculated by short-term repurchase agreements, backed by Treasury securities, as its preferred alternative rate for LIBOR. There are significant differences between LIBOR and SOFR, such as LIBOR being an unsecured lending rate while SOFR is a secured lending rate, and SOFR is an overnight rate while LIBOR reflects term rates at different maturities. If our LIBOR-based borrowings are converted to SOFR, the differences between LIBOR and SOFR, could result in higher interest costs for us, which could have a material adverse effect on our operating results. Although SOFR is the ARRC’s recommended replacement rate, it is also possible that lenders may instead choose alternative replacement rates that may differ from LIBOR in ways similar to SOFR or in other ways that would result in higher interest costs for us. We cannot predict the effect of the decision not to sustain LIBOR, or the potential transition to SOFR or another alternative reference rate as LIBOR’s replacement. Regardless, there can be no assurances as to what additional alternative base rates may be and whether such base rate will be more or less favorable than LIBOR and any other unforeseen impacts of the discontinuation of LIBOR. We are actively assessing and monitoring the risks associated with the planned discontinuation or unavailability of certain reference rates, including LIBOR, and the transition to alternative reference rates, but can provide no assurances regarding the impact of the discontinuation of LIBOR. Tax Risks - We are subject to significant tax risks. If we fail to maintain our qualification as a REIT in a given taxable year, we may be subject to penalties as well as federal, state and local income tax on our taxable income, which could be material. We will also not be able to qualify as a REIT for the subsequent four taxable years, unless entitled to relief under certain statutory provisions. A REIT must distribute at least 90% of its taxable income to its stockholders, determined without regard to the deduction for dividends paid and excluding net capital gains. In addition to the 90% distribution requirement, a REIT is subject to a nondeductible excise tax if it fails to make certain minimum distributions by calendar year-end. The excise tax imposed is equal to 4% of the excess of the required distribution (specified under U.S. federal tax law) over the distributed amount for such year. Distribution of the remaining balance may extend until timely filing of the REIT’s tax return in the subsequent taxable year. Qualifying distributions of taxable income are deductible by a REIT in computing taxable income. Regulatory Risks - We are subject to significant regulatory risks. If we were unable to rely upon an exemption from registration available under the Investment Company Act of 1940, as amended, we could be required to restructure its assets or activities, including the disposition of assets during periods of adverse market conditions that could result in material losses to us. Loans Receivable Held-for-Investment Loans that we have originated or acquired and have the intent and ability to hold to maturity or payoff are reported at their unpaid principal balances net of any unearned income, unamortized deferred fees and expected credit losses, if applicable. Loan origination, extension and exit fees are deferred and recognized in interest income over the estimated life of the loans using the effective interest method, adjusted for actual prepayments. Interests in Loans Receivable Held-for-Investment Loans that we have acquired in a transfer that did not meet the qualifications of a sale and have the intent and ability to hold to maturity or payoff are reported at their unpaid principal balances net of any unearned income, unamortized deferred fees and expected credit losses, if applicable. Loan discounts, extension fees and exit fees are deferred and recognized in interest income over the estimated life of the loans using the effective interest method, adjusted for actual prepayments. Non-cash Advances in Lieu of Interest We hold certain loans whereby a portion of the loan’s unfunded commitment may be used to fund monthly interest payments, so long as certain conditions are met. As a result, such loan’s unpaid principal balance increases on the interest payment date and we do not receive cash. This feature is referred to as non-cash advance in lieu of interest, and the increase in unpaid principal balance is reflected in the operating section of our consolidated statements of cash flows, as opposed to the investing section as if the cash had been directly advanced to a borrower. We also have certain financings that allow for non-cash advances in lieu of interest, and the increase in unpaid principal balance is reflected in the operating section of our consolidated statements of cash flows, as opposed to the financing section as if cash had been directly received by us. 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 reserve 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 reserve are recognized through a provision for or reversal of current expected credit loss reserve 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 macroeconomic forecasts for the duration of each loan. General CECL Reserve 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 is 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 December 31, 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, adjusted for projected fundings from interest reserves if applicable, which is considered in the estimate of the general CECL reserve. 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, property or collateral location, loan type and other more subjective variables that include 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 specific CECL reserve 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 Reserve 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 and 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. For such loan we would measure the specific reserve 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 reserve is created as a component of our overall current expected credit loss reserve (following the adoption of CECL, or as a loan loss reserve prior to the adoption of CECL). Specific reserves are equal to the excess of a loan’s carrying value to the net present value of its expected future 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 from the sale of the collateral. If we have determined that a loan or a portion of a loan is uncollectible, we will write-off the loan through an adjustment to our current expected credit loss reserve based on the net present value of expected future cash flows or the fair value of the collateral less costs to sell, if repayment is expected from the sale of 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 Reserve please refer to Note 3—"Loans Portfolio—Current Expected Credit Losses”. Financial Instruments Financial instruments held by us include cash and cash equivalents, restricted cash, loan principal payments held by servicer, loans receivable held-for-investment, interests in loans receivable held for investment, other assets, other liabilities, repurchase agreements, term participations, notes payable, loan participations sold, secured term loans and debt related to real estate owned. The fair value of cash and cash equivalents, restricted cash, loan principal payments held by servicer, and other liabilities approximates their current carrying amount. GAAP requires the categorization of the fair value of financial instruments into three broad levels that form a hierarchy based on the transparency of inputs to the valuation. See Note 8 – Fair Value Measurements for details of our valuation policy. Cash and Cash Equivalents We consider all investments with original maturities of three months or less, at the time of acquisition, to be cash equivalents. We maintain cash accounts which from time to time exceed the insured maximum of $ 250,000 per account. The carrying amount of such cash and cash equivalents approximates fair value. Restricted Cash Restricted cash includes reserve balances for interest, real estate taxes, and insurance, as well as lockbox accounts held pursuant to the terms of certain financings. The carrying amount of restricted cash approximates fair value. 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 estimated useful lives ranging from 5 to 40 years . 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 carrying amount 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. There were no impairments of our real estate owned as of December 31, 2022. Debt assumed in an acquisition/foreclosure of real estate is recorded at its estimated fair value at the time of the acquisition and is subsequently presented net of unamortized debt issuance costs. 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 significantly 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 other than temporary impairment of our equity investments. There were no other than temporary impairments of our equity method investment as of December 31, 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 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 any derivatives as hedges to qualify for hedge accounting for financial reporting purposes and fluctuations in the fair value of derivatives have been recognized as unrealized gain on interest rate cap in the accompanying consolidated statements of operations. Payments received from our counterparties in connection with our derivative are recognized on our consolidated statements of operations as proceeds from interest rate cap. Other Assets Other assets include accrued 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 certain financing facilities, derivative financial instruments, and repurchased shares not yet settled. Deferred Financing Costs Deferred financing costs included within other assets on our consolidated balance sheets include costs related to the establishment and ongoing operations of repurchase agreements and term participation facility. These costs are amortized as interest expense using the straight-line method over the contractual term of the repurchase agreements or the contractual term of the collateral asset for the term participation facility. Costs related to obtaining notes payable, loan participations sold, secured term loans, and debt related to real estate owned are presented on our consolidated balance sheets as a direct deduction from the carrying amount of the obligations. These costs are amortized over the contractual term of the obligations as interest expense using the effective interest method. Secured Financings We evaluate whether a financing transaction constitutes a sale through legal isolation of the transferred financial asset from us, the ability of the transferee to pledge or exchange the transferred financial asset without constraint and the transfer of control of the transferred financial asset. Repurchase Agreements We finance certain of our loans receivable using repurchase agreements. Under a repurchase agreement, an asset is sold to a counterparty to be repurchased at a later date at a predetermined price. Prior to repurchase, interest is paid to the counterparty based upon the sales price and a predetermined interest rate. Other than amounts guaranteed by us, borrowings under the repurchase agreements are non-recourse to us. In some cases, the repurchase facility counterparty has the benefit of cross-collateralization across the loans in the facility. We account for our repurchase agreements as secured financings under GAAP. When treated as a secured financing, the transferred assets remain on our consolidated balance sheets, and the financing proceeds are recorded as a liability. Term Participation Facility We financed certain of our loans receivable through selling a senior interest in the loan receivable to a counterparty. The facility provides for capacity to finance additional loans receivable. The lender has the benefit of cross-collateralization across the loans in the facility. We present the term participation facility as a liability on our consolidated balance sheets. Loan Participations Sold, Net Loan participations sold represent an interest in a loan receivable that we sold, however, we present the loan participation sold as a liability on our consolidated balance sheets because the arrangement does not qualify as a sale under GAAP. Other than amounts guaranteed by us, these participations are non-recourse and remain on our consolidated balance sheets until the loan is repaid. The gross presentation of the loan participations sold does not impact equity or net income. Notes Payable, Net We finance certain of our loans receivable using direct financing, collateralized by the loans receivable. Other than amounts guaranteed by us, borrowings under notes payable are non-recourse to us. Secured Term Loan, Net Our secured term loan is collateralized by a pledge of equity in certain subsidiaries and their related assets, as well as a first priority security interest in selected assets. The secured term loan is presented net of any original issue discount, and transaction expenses are deferred and recognized in interest expense over the life of the loan using the effective interest method. 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 unpaid principal balance 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. Once income accrual is suspended, any previously recognized interest income deemed uncollectible is reversed against interest income. 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. In accordance with ASC 606, Revenue from Contracts with Customers , revenue is recognized when we transfer promised services to customers in an amount that reflects the consideration to which we expect to be entitled to in exchange for those services. ASC 606 includes a five-step framework that requires an entity to: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract, and (v) recognize revenue when the entity satisfies a performance obligation. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer. A contract's transaction price is allocated to each distinct performance obligation and recognized as revenue when the performance obligation is satisfied. Our contracts generally have a single performance obligation, such as renting a hotel room to a customer, or providing food and beverage to a customer, or providing a hotel property related good or service to a customer. Our performance obligations are generally satisfied at a point in time. 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. Stock-Based Compensation Stock-based compensation consists of both time-based and performance-based awards issued to certain individuals employed by (or members of) affiliates of the Manager. 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. Redeemable Common Stock We account for our common stock subject to possible r |
Loans Portfolio
Loans Portfolio | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
Loans Portfolio | Note 3. Loans Portfolio Loans Receivable Our loans receivable portfolio as of December 31, 2022 was comprised of the following loans ($ in thousands, except for number of loans): Number of Loan Commitment (1) Unpaid Principal Balance Carrying (2) Weighted Average Spread (3) Weighted Average Interest Rate (4) Loans receivable held-for- Variable: Senior loans (5) 71 $ 9,221,549 $ 7,327,462 $ 7,217,564 + 3.92% 8.05 % Subordinate loans 2 63,102 61,763 61,947 + 11.55% 15.95 % 73 9,284,651 7,389,225 7,279,511 + 3.98% 8.11 % Fixed: Senior loans (5) 2 $ 23,373 $ 23,373 $ 23,595 8.50 % Subordinate loans 2 125,927 125,927 125,668 8.49 % 4 149,300 149,300 149,263 8.49 % Total/Weighted Average 77 $ 9,433,951 $ 7,538,525 $ 7,428,774 8.12 % General CECL reserve ( 68,347 ) Loans receivable held-for-investment, net $ 7,360,427 (1) Loan commitment represents principal outstanding plus remaining unfunded loan commitments. (2) Net of specific CECL reserve of $ 60.3 million. (3) The weighted average is expressed as a spread over the relevant floating benchmark rates. One-month LIBOR and SOFR as of December 31, 2022 were 4.39 % and 4.36 % , respectively. Weighted average is based on unpaid principal balance as of December 31, 2022 . For loans placed on non-accrual, the spread used in calculating the weighted average spread is 0% . (4) 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 unpaid principal balance as of December 31, 2022 and includes loans on non-accrual status. For loans placed on non-accrual, the interest rate used in calculating the weighted average spread is 0% . (5) Senior loans include senior mortgages and similar loans, including related contiguous subordinate loans (if any), and pari passu participations in senior mortgage loans. 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 (1) Unpaid Principal Carrying (2) Weighted Average Spread (3) Weighted Average Interest Rate (4) Loans receivable held-for-investment Variable: Senior loans (5,6) 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 (5) 3 $ 62,573 $ 62,573 $ 56,449 N/A 10.09 % Subordinate loans 2 125,927 125,927 125,620 N/A 8.49 % 5 188,500 188,500 182,069 9.02 % Total/Weighted Average 59 $ 7,488,611 $ 6,441,238 $ 6,400,972 N/A 5.40 % General CECL reserve ( 60,677 ) Loans receivable held-for-investment, net $ 6,340,295 (1) Loan commitment represents principal outstanding plus unfunded loan commitments. (2) Net of specific CECL reserve of $ 6.3 million. (3) 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 unpaid principal balance as of December 31, 2021 and includes loans on non-accrual status. (4) 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 unpaid principal balance as of December 31, 2021 and includes loans on non-accrual status . (5) Senior loans include senior mortgages and similar loans, including related contiguous subordinate loans (if any), and pari passu participations in senior mortgage loans. (6) Includes a fixed rate loan with an unpaid 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 unpaid principal balance of $ 103.1 million and a loan commitment of $ 104.4 million at December 31, 2021 . Activity relating to the loan receivable portfolio for the years ended December 31, 2022 and 2021 ($ in thousands): Unpaid Principal Balance Deferred Fees Specific CECL Reserve 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 2,030,456 - - 2,030,456 Advances on existing loans 602,254 - - 602,254 Non-cash advances in lieu of interest 77,004 1,447 - 78,451 Origination fees, extension fees and exit fees - ( 41,537 ) - ( 41,537 ) Repayments of loans receivable ( 1,463,271 ) - - ( 1,463,271 ) Repayments of non-cash advances in lieu of interest ( 21,609 ) - - ( 21,609 ) Accretion of fees - 24,763 - 24,763 Sale proceeds ( 146,912 ) - - ( 146,912 ) Gain (loss) on sale 30,892 ( 191 ) - 30,701 Specific CECL reserve - - ( 65,494 ) ( 65,494 ) Principal charge-offs ( 11,527 ) - 11,527 - Balance at December 31, 2022 $ 7,538,525 $ ( 49,451 ) $ ( 60,300 ) $ 7,428,774 General CECL reserve $ ( 68,347 ) Carrying Value $ 7,360,427 (1) Balance at December 31, 2021 does not include general CECL reserve. Unpaid Principal Balance Deferred Fees Specific CECL Allowance Carrying Value (1) Balance at December 31, 2020 $ 6,152,331 $ ( 20,506 ) $ ( 6,000 ) $ 6,125,825 Initial funding of new loan originations and acquisitions 2,331,328 - - 2,331,328 Advances on existing loans 623,198 - - 623,198 Non-cash advances in lieu of interest 68,859 432 - 69,291 Origination fees, extension fees and exit fees - ( 39,096 ) - ( 39,096 ) Repayments of loans receivable ( 2,453,804 ) - - ( 2,453,804 ) Repayments of non-cash advances in lieu of interest ( 126,865 ) - - ( 126,865 ) Accretion of fees - 25,237 - 25,237 Sale proceeds ( 48,006 ) - - ( 48,006 ) Gain (loss) on sale ( 141 ) - - ( 141 ) Specific CECL Allowance - - ( 2,094 ) ( 2,094 ) Transfer to real estate owned, net ( 103,901 ) - - ( 103,901 ) Principal charge-offs ( 1,761 ) - 1,761 - Balance at December 31, 2021 $ 6,441,238 $ ( 33,933 ) $ ( 6,333 ) $ 6,400,972 General CECL Allowance $ ( 60,677 ) Carrying Value $ 6,340,295 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, 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 $ 78.5 million has been funded and is included in loans receivable held-for-investments on our consolidated balance sheet as of December 31, 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 December 31, 2022 , the loan had an amortized cost basis of $ 87.8 million and represents approximately 1.2 % of total loans receivable held-for-investment, net. The loan is considered as part of the general CECL reserve. As of December 31, 2022, the borrower is current on all contractually obligated payments 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 December 31, 2022 and 2021 ($ in thousands): December 31, 2022 December 31, 2021 Loan Type (1) Carrying Value (1) Percentage Carrying Value (2) Percentage Senior loans (3) $ 7,241,159 97 % $ 6,303,664 96 % Subordinate loans 187,615 3 % 259,172 4 % $ 7,428,774 100 % $ 6,562,836 100 % General CECL reserve $ ( 68,347 ) $ ( 60,691 ) $ 7,360,427 $ 6,502,145 Property Type Carrying Value (1) Percentage Carrying Value (2) Percentage Multifamily $ 3,044,892 41 % $ 1,986,628 30 % Hospitality 1,551,946 20 % 1,176,842 18 % Office 1,086,018 15 % 1,113,805 17 % Mixed-use (4) 615,599 8 % 734,613 11 % For Sale Condo 434,210 6 % 710,660 11 % Land 426,645 6 % 631,713 10 % Other 269,464 4 % 208,575 3 % $ 7,428,774 100 % $ 6,562,836 100 % General CECL reserve $ ( 68,347 ) $ ( 60,691 ) $ 7,360,427 $ 6,502,145 Geographic Location Carrying Value (1) Percentage Carrying Value (2) Percentage United States West $ 2,450,710 33 % $ 1,156,896 17 % Northeast 1,999,648 27 % 2,734,550 42 % Southeast 1,008,590 14 % 836,904 13 % Mid Atlantic 809,908 11 % 1,235,527 19 % Southwest 694,887 9 % 269,461 4 % Midwest 461,531 6 % 309,298 5 % Other 3,500 0 % 20,200 0 % $ 7,428,774 100 % $ 6,562,836 100 % General CECL reserve $ ( 68,347 ) $ ( 60,691 ) $ 7,360,427 $ 6,502,145 (1) Net of specific CECL reserve of $ 60.3 million. (2) Net of specific CECL reserve of $ 6.3 million. (3) Senior loans include senior mortgages and similar credit quality loans, including related contiguous subordinate loans and pari passu participations in senior mortgage loans. (4) Mixed-use comprises of 4 % 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 years ended December 31, 2022, 2021 and 2020 ($ in thousands): Year Ended December 31, 2022 December 31, 2021 December 31, 2020 Coupon interest $ 441,320 $ 386,731 $ 413,228 Interest on cash, cash equivalents, and other income 4,381 2,045 4,402 Accretion of fees 24,967 26,487 28,310 Total interest and related income (1) $ 470,668 $ 415,263 $ 445,940 (1) We recognized $ 5.1 million, $ 7.3 million, and $ 5.9 million in pre-payment penalties and accelerated fees during the years ended December 31, 2022, 2021, and 2020 respectively. 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 as of December 31, 2022 and 2021 ($ in thousands): December 31, 2022 Risk Rating Number of Loans Unpaid Principal Balance Carrying Value (1) % of Total of Carrying Value 1 - $— $— 0 % 2 1 927 913 0 % 3 63 6,181,207 6,136,300 83 % 4 10 1,005,345 1,001,235 13 % 5 3 351,046 290,326 4 % 77 $ 7,538,525 $ 7,428,774 100 % General CECL reserve ( 68,347 ) $ 7,360,427 (1) Net of specific CECL reserve of $ 60.3 million. December 31, 2021 Risk Rating Number of Loans Unpaid Principal Balance Carrying Value (1) % of Total of Carrying Value 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 20,200 0 % 60 $ 6,602,804 $ 6,562,836 100 % General CECL reserve ( 60,691 ) $ 6,502,145 (1) Net of specific CECL reserve of $ 6.3 million. As of December 31, 2022 and 2021 , the average risk rating of our portfolio was 3.2 and 3.1 , respectively, weighted by unpaid principal balance. The following table presents the carrying value and significant characteristics of our loans receivable on non-accrual status as of December 31, 2022 ($ in thousands): Property Type Location Risk Rating Unpaid Principal Balance Carrying Value Before Specific CECL Reserve Specific Carrying Value Interest Recognition Method / as of Date Multifamily CA 5 $ 138,749 $ 138,329 $ ( 18,293 ) $ 120,036 Cost recovery / 12/1/2022 Mixed-Use NY 5 208,797 208,797 ( 42,007 ) 166,790 Cash basis / 11/1/2022 (1) Land NY 4 67,000 67,000 - 67,000 Cash basis / 11/1/2021 Other Other 5 3,500 3,500 - 3,500 Cost recovery / 7/1/2020 Total non-accrual (2) $ 418,046 $ 417,626 $ ( 60,300 ) $ 357,326 (1) Interest income of $ 1.1 million was recognized on this loan while on non-accrual status during the year ended December 31, 2022 . (2) Loans classified as non-accrual represented 4.8 % of the total loan portfolio at December 31, 2022 , based on carrying value. Excludes three loans with an aggregate carrying value of $ 360.0 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): Property Type Location Risk Rating Unpaid Principal Balance Carrying Value Before Specific CECL Reserve Specific Carrying Value Interest Recognition Method / as of Date Hospitality CA 4 81,380 77,530 - 77,530 Cash basis / 12/1/2021 (1) Other Other 5 11,533 11,533 ( 333 ) 11,200 Cost recovery / 5/1/2021 Total current 92,913 89,063 ( 333 ) 88,730 Land NY 4 116,020 116,211 - 116,211 Cash basis / 5/1/2020 Land NY 4 75,579 76,069 - 76,069 Cash basis / 8/1/2020 Land NY 4 67,000 67,000 - 67,000 Cash basis / 11/1/2021 Other Other 5 15,000 15,000 ( 6,000 ) 9,000 Cost recovery / 7/1/2020 Total delinquent 273,599 274,280 ( 6,000 ) 268,280 Total non-accrual (2) $ 366,512 $ 363,343 $ ( 6,333 ) $ 357,010 (1) Interest income of $ 0.4 million was recognized on this loan while on non-accrual status during the year ended December 31, 2021 . (2) Loans classified as non-accrual represented 5.6 % of the total loan portfolio at December 31, 2021, based on carrying value. Current Expected Credit Losses The current expected credit loss reserve required under GAAP reflects our current estimate of potential credit losses related to our loan portfolio. See Note 2 for further discussion of our current expected credit loss reserve. During the year ended December 31, 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 of $ 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. During the year ended December 31, 2022, we recorded a net provision of $ 84.4 million for current expected credit losses. The total current expected credit loss reserve increased to $ 146.4 million as of December 31, 2022. The increase was primarily attributable to the increase in the size of our loan portfolio, worsening macroeconomic forecasts, and specific CECL reserves of $ 65.5 million related to three loans. During the fourth quarter of 2021, we received principal repayments of $ 81.7 million on a senior loan with an unpaid 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 principal repayment in December 2021, the maturity date of the loan was extended to January 1, 2023. As of December 31, 2021, the loan had a specific CECL reserve of $ 0.3 million which represented additional collectible interest through the maturity date. During the fourth quarter of 2022, this loan was repaid, resulting in a principal charge off of $ 27,000 . During the fourth quarter of 2022, we recorded a specific CECL reserve of $ 42.0 million in connection with a senior loan with an unpaid principal balance and carrying value prior to any specific CECL reserve of $ 208.8 million and an initial maturity date of February 1, 2023. As of December 31, 2021, the loan had a carrying value of $ 207.5 million. The loan is collateralized by a mixed-use building in New York, NY. As of December 31, 2022, this loan is on non-accrual status. During the fourth quarter of 2022, we recorded a specific CECL reserve of $ 18.3 million in connection with a senior loan with an unpaid principal balance of $ 138.8 million, a carrying value prior to any specific CECL reserve of $ 138.3 million and an initial maturity date of August 8, 2024. As of December 31, 2021, the loan had a carrying value of $ 134.6 million. The loan is collateralized by a portfolio of multifamily properties located in San Francisco, CA. As of December 31, 2022, this loan is on non-accrual status. Fair market values used to determine specific CECL reserves are calculated using a discounted cash flow model, a sales comparison approach, or a market capitalization approach. Estimates of fair market values include assumptions of property specific cash flows over estimated holding periods, discount rates approximating 6.0 %, and market capitalization rates ranging from 4.5 % to 6.0 %. These assumptions are based upon the nature of the properties, recent sales and lease comparables, and anticipated real estate and capital market conditions. The following table illustrates the quarterly changes in the current expected credit loss reserve for the years ended December 31, 2022 and 2021, respectively ($ in thousands): General CECL Reserve Specific CECL Reserve (1) Loans Receivable Held-for-Investment Interests in Loans Receivable Held-for-Investment Accrued Interest Receivable Unfunded Loan Commitments (2) Total General CECL Reserve Total Total reserve at $ 6,000 $ - $ - $ - $ - $ - $ 6,000 Initial CECL reserve, - 64,274 406 357 13,214 78,251 78,251 Increase (reversal) 2,094 ( 3,597 ) ( 392 ) ( 139 ) ( 6,928 ) ( 11,056 ) ( 8,962 ) Principal charge-offs ( 1,761 ) - - ( 1,761 ) Total reserve, $ 6,333 $ 60,677 $ 14 $ 218 $ 6,286 $ 67,195 $ 73,528 Increase (reversal) 65,494 7,670 ( 14 ) ( 218 ) 11,429 18,867 84,361 Principal charge-offs ( 11,527 ) - - - - - ( 11,527 ) Total $ 60,300 $ 68,347 $ - $ - $ 17,715 $ 86,062 $ 146,362 Reserve at 0.8 % 1.1 % 1.9 % (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 reserve. (2) The CECL reserve for unfunded commitments is included in other liabilities on the consolidated balance sheets. Our primary credit quality indicator is our internal risk rating, which is further discussed above. The following table presents the carrying value of our loans receivable as of December 31, 2022 by year of origination and risk rating ($ in thousands): Carrying Value by Origination Year as of December 31, 2022 Risk Rating Number of Loans Carrying Value (1) 2022 2021 2020 2019 2018 2017 1 0 $ - $ - $ - $ - $ - $ - $ - 2 1 913 - - - - 913 - 3 63 6,136,300 2,074,609 1,727,767 96,781 1,498,612 641,437 97,094 4 10 1,001,235 78,201 165,487 199,838 229,697 328,012 - 5 3 301,853 - - - 135,063 166,790 - Charge-Offs ( 11,527 ) - - - ( 11,500 ) ( 27 ) - 77 $ 7,428,774 $ 2,152,810 $ 1,893,254 $ 296,619 $ 1,851,872 $ 1,137,125 $ 97,094 (1) Net of specific CECL reserves of $ 60.3 million. Interests in Loans Receivable Held-for-Investment We had no interests in loans receivable as of December 31, 2022. Our interests in loans receivable portfolio as of December 31, 2021 was comprised of the following loans ($ 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 loan receivable portfolio for the years ended December 31, 2022 and 2021 ($ 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 ) Repayments of non-cash advances in lieu of interest ( 13,178 ) — ( 13,178 ) Accretion of origination fees, net — 204 204 Balance at December 31, 2022 $ — $ — $ — (1) Balance at December 31, 2021 does not include general CECL reserve. Unpaid Principal Balance Deferred Fees Carrying Value (1) Balance at December 31, 2020 $ 338,957 $ ( 687 ) $ 338,270 Advances on existing interests in loans receivable 101,767 — 101,767 Non-cash advances in lieu of interest 18,733 — 18,733 Origination fees, extension fees and exit fees — ( 265 ) ( 265 ) Repayments of interests in loans receivable ( 269,988 ) — ( 269,988 ) Repayments of non-cash advances in lieu of interest ( 27,903 ) — ( 27,903 ) Accretion of origination fees, net — 1,250 1,250 Balance at December 31, 2021 $ 161,566 $ 298 $ 161,864 The following table details overall statistics for our loans receivable and interests in loans receivable portfolio ($ in thousands): Loans Receivable Interests in Loans Receivable December 31, 2022 December 31, 2021 December 31, 2022 December 31, 2021 Weighted average yield to maturity 8.6 % 5.6 % N/A 6.7 % Weighted average term to fully extended maturity 3.2 years 3.3 years N/A 1.6 years |
Equity Method Investment
Equity Method Investment | 12 Months Ended |
Dec. 31, 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 occurred simultaneously with the conversion of the aforementioned loan, and thus there was no change in the underlying value of our 51 % equity interest in CMTG/TT. See Note 3 for further details. As of December 31, 2022 , the carrying value of our 51 % equity interest in CMTG/TT approximated $ 41.9 million . |
Real Estate Owned, Net
Real Estate Owned, Net | 12 Months Ended |
Dec. 31, 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 %, and was allocated $ 123.1 to land and $ 290.9 million to building and improvements, respectively. As of December 31, 2022, the aggregate cost of our real estate owned for federal income tax purposes was $ 427.3 million. 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 expense, $ 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 December 31, 2022 and 2021 ($ in thousands): December 31, 2022 December 31, 2021 Land $ 123,100 $ 123,100 Building 284,400 284,400 Capital improvements 2,343 - Furniture, fixtures and equipment 6,500 6,500 Real estate owned 416,343 414,000 Less: accumulated depreciation ( 15,154 ) ( 7,113 ) Real estate owned, net $ 401,189 $ 406,887 |
Debt Obligations
Debt Obligations | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Debt Obligations | Note 6. Debt Obligations As of December 31, 2022 and 2021, we financed certain of our loans receivables using repurchase agreements, a term participation facility, 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 December 31, 2022 and 2021, we are in compliance with all covenants under our financing agreements. The following table summarizes our portfolio financings as of December 31, 2022 and 2021 ($ in thousands): December 31, 2022 December 31, 2021 Capacity Borrowing Outstanding Weighted (1) Capacity Borrowing Outstanding Weighted (1) Repurchase agreements and term (2) $ 5,700,000 $ 4,012,818 + 2.25 % $ 4,065,000 $ 3,274,508 + 2.00 % Repurchase agreements - Side Car 271,171 211,572 + 4.51 % 271,171 215,003 + 4.50 % Loan participations sold 264,252 264,252 + 3.68 % 168,322 168,322 + 3.79 % Notes payable 495,934 154,629 + 3.09 % 48,000 48,000 + 4.00 % Secured Term Loan 755,090 755,090 + 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 $ 7,776,447 $ 5,688,361 + 2.75 % $ 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 and SOFR as of December 31, 2022 were 4.39 % and 4.36 % , respectively. (2) The repurchase facilities are partially recourse to us. The maximum guarantees under our repurchase agreements range from 25 % to 50 % of borrowings outstanding. As of December 31, 2022 and December 31, 2021, the weighted average recourse limitation on our repurchase and term participation facilities was 28 % and 27 %, respectively. Repurchase Agreements and Term Participation Facility Repurchase Agreements The following table summarizes our repurchase agreements by lender as of December 31, 2022 ($ in thousands): Lender Initial Maturity (1) Fully Maximum Capacity Borrowing Undrawn JP Morgan Chase Bank, N.A. - Main Pool 6/29/2025 6/29/2027 $ 1,500,000 $ 1,272,079 $ 227,921 JP Morgan Chase Bank, N.A. - Side Car 5/27/2023 5/27/2024 271,171 211,572 59,599 Morgan Stanley Bank, N.A. (2) 1/26/2024 1/26/2025 1,000,000 859,624 140,376 Goldman Sachs Bank USA (3) 5/31/2024 5/31/2025 500,000 356,014 143,986 Barclays Bank PLC 12/20/2024 12/20/2025 500,000 176,384 323,616 Deutsche Bank AG, New York Branch 6/26/2023 6/26/2026 400,000 345,583 54,417 Wells Fargo Bank, N.A. 9/29/2023 9/29/2026 800,000 745,603 54,397 Total $ 4,971,171 $ 3,966,859 $ 1,004,312 (1) Facility maturity dates may be extended based on certain conditions being met. (2) On January 24, 2023, we exercised our option to extend the initial maturity of this facility from January 26, 2023 to January 26, 2024 . (3) On January 13, 2023, this facility was modified such that the initial maturity was extended from May 31, 2023 to May 31, 2024 . The following table summarizes our repurchase agreements by lender as of December 31, 2021 ($ in thousands): Lender Initial (1) Fully Maximum Capacity 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, the facility 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 December 31, 2022 are summarized as follows ($ in thousands): Lender Borrowing Outstanding Carrying Carrying (1) JP Morgan Chase Bank, N.A. - Main Pool $ 1,272,079 $ 1,272,079 $ 1,815,531 JP Morgan Chase Bank, N.A. - Side Car 211,572 211,572 460,481 Morgan Stanley Bank, N.A. 859,624 859,624 1,340,573 Goldman Sachs Bank USA 356,014 356,014 551,091 Barclays Bank PLC 176,384 176,384 269,973 Deutsche Bank AG, New York Branch 345,583 345,583 591,592 Wells Fargo Bank, N.A. 745,603 745,603 952,845 Total $ 3,966,859 $ 3,966,859 $ 5,982,086 (1) Net of specific CECL reserve of $ 60.3 million. Liabilities under our repurchase agreements as of December 31, 2021 are summarized as follows ($ in thousands): Lender Borrowings Outstanding Carrying Carrying JP Morgan Chase Bank, N.A. - Main Pool $ 1,173,280 $ 1,173,280 $ 1,626,719 JP Morgan Chase Bank, N.A. - Side Car 215,003 215,003 436,325 Morgan Stanley Bank, N.A. 1,000,000 1,000,000 1,709,758 Goldman Sachs Bank USA 410,551 410,551 589,825 Barclays Bank PLC 193,884 193,884 283,716 Deutsche Bank AG, New York Branch 211,372 211,372 327,671 Wells Fargo Bank, N.A. 285,421 285,421 362,742 Total $ 3,489,511 $ 3,489,511 $ 5,336,756 Term Participation Facility On November 4, 2022, we entered into a master participation and administration agreement to finance certain of our mortgage loans. The lender has the benefit of cross-collateralization across the loans in the facility. The facility has a maximum committed amount of $ 1.0 billion. As of December 31, 2022 , $ 481.4 million was committed of which $ 257.5 million was outstanding. Per the terms of the agreement, we may finance loans on this facility until the end of the one year revolving period, ending November 4, 2023 . Upon the end of the revolving period, the term participation facility will mature five years following the date of the most recently financed loan on the facility. As of December 31, 2022 , the maturity date of the facility is December 21, 2027 . Our term participations as of December 31, 2022 are summarized as follows (in thousands): Contractual Maturity Date Borrowing Outstanding Carrying Value Carrying Value of Collateral 12/21/2027 $ 257,531 $ 257,531 $ 375,769 Loan Participations Sold Our loan participations sold as of December 31, 2022 are summarized as follows ($ in thousands): Contractual Maximum Borrowings Outstanding Carrying Carrying (1) 8/1/2023 8/1/2023 $ 138,322 $ 138,322 $ 281,123 10/18/2023 10/18/2024 105,930 105,645 192,355 12/31/2024 12/31/2025 20,000 19,831 157,833 Total $ 264,252 $ 263,798 $ 631,311 (1) Includes cash reserve balances. Our loan participations sold as of December 31, 2021 are summarized as follows ($ in thousands): Contractual Maximum Borrowings 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 December 31, 2022 are summarized as follows ($ in thousands): Contractual Maximum Borrowing Outstanding Carrying Carrying 12/31/2024 12/31/2025 $ 103,592 $ 102,467 $ 157,833 2/2/2026 2/2/2027 28,288 27,292 34,199 6/30/2025 6/30/2026 4,777 4,354 16,290 9/2/2026 9/2/2027 - ( 1,234 ) ( 1,763 ) 11/22/2024 11/24/2026 16,055 15,497 25,403 10/13/2025 10/13/2026 1,917 1,145 5,749 Total $ 154,629 $ 149,521 $ 237,711 Our notes payable as of December 31, 2021 are summarized as follows ($ in thousands): Contractual (2) Maximum Borrowings Outstanding Carrying Carrying (1) 1/4/2022 1/4/2022 $ 48,000 $ 48,000 $ 116,512 (1) Includes all cash reserve balances held by the 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 December 31, 2022 is summarized as follows ($ in thousands): Contractual Maturity Date Stated Rate (1) Interest Rate Borrowing Outstanding Carrying Value 8/9/2026 S + 4.50% 8.96 % $ 755,090 $ 736,853 (1) One-month term SOFR at December 31, 2022 was 4.36 % . The secured term loan as of December 31, 2021 is summarized as follows ($ in thousands): Contractual Maturity Date Stated Rate (1) Interest Rate Borrowings 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 December 31, 2022 is summarized as follows ($ in thousands): Contractual Maturity Date Stated Rate (1) Net Interest Rate (1) Borrowings Outstanding Carrying Value 2/9/24 L + 2.78 % 5.78 % $ 290,000 $ 289,389 (1) One-month LIBOR at December 31, 2022 was 4.39 % , which exceeds 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 Maturity Date Stated Rate (1) Interest Rate Borrowings Outstanding Carrying Value 2/9/24 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 December 31, 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 years ended December 31, 2022, 2021 and 2020 ($ in thousands): Year Ended December 31, December 31, December 31, Interest expense on secured financings $ 178,036 $ 113,300 $ 132,389 Interest expense on secured term loan 48,756 46,038 20,205 Interest expense on debt related to real estate owned (1) 14,170 15,643 - Amortization of financing costs 20,145 21,251 19,638 Total interest and related expense $ 261,107 $ 196,232 $ 172,232 (1) Interest on debt related to real estate owned includes $ 309,000 and $ 56,000 of amortization of financing costs for the years ended December 31, 2022 and 2021 , respectively. |
Derivatives
Derivatives | 12 Months Ended |
Dec. 31, 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 %. Changes in the fair value of our interest rate cap are recorded as an unrealized gain or loss on interest rate cap on our consolidated statements of operations and the fair value is recorded in other assets on our consolidated balance sheets. Proceeds received from our counterparty related to the interest rate cap are recorded as proceeds from interest rate cap on our consolidated statements of operations. The fair value of the interest rate cap is $ 6.0 million at December 31, 2022. During the year ended December 31, 2022 , we recognized approximately $ 495,000 of proceeds from interest rate cap. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 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 $ 6.0 million at December 31, 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): December 31, 2022 Fair Value Hierarchy Level Carrying Unpaid Principal Balance Fair Value Level 1 Level 2 Level 3 Loans receivable held-for- $ 7,360,427 $ 7,538,525 $ 7,331,207 $ — $ — $ 7,331,207 Repurchase agreements 3,966,859 3,966,859 3,966,859 — — 3,966,859 Term Participation Facility 257,531 257,531 255,296 — — 255,296 Loan participations sold, net 263,798 264,252 261,417 — — 261,417 Notes payable, net 149,521 154,629 153,282 — — 153,282 Secured term loan, net 736,853 755,090 743,764 — — 743,764 Debt related to real estate owned, 289,389 290,000 281,568 — — 281,568 December 31, 2021 Fair Value Hierarchy Level Carrying Unpaid Principal Balance Fair Value Level 1 Level 2 Level 3 Loans receivable held-for- $ 6,340,295 $ 6,441,238 $ 6,434,157 $ — $ — $ 6,434,157 Interests in loans receivable 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, 289,806 290,000 281,723 — — 281,723 |
Equity
Equity | 12 Months Ended |
Dec. 31, 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 stock issued and 138,376,144 and 139,840,088 common stock outstanding as of December 31, 2022 and 2021, respectively. The following table provides a summary of the number of common stock outstanding during the years ended December 31, 2022, 2021, and 2020, including redeemable stock: Year Ended Common Stock Outstanding December 31, December 31, December 31, (1) Beginning balance 139,840,088 132,848,720 129,348,720 Issuance of common stock - 5,524,934 3,500,000 Conversion of fully vested RSUs to common stock - 1,682,060 - Repurchase of common stock ( 1,463,944 ) ( 215,626 ) - Ending balance 138,376,144 139,840,088 132,848,720 (1) Amount at December 31, 2020 includes fully vested RSUs, which includes 877,498 of common stock underlying the vested RSUs. Preferred Stock Our charter provides for the issuance of up to 10,000,000 shares of preferred stock with a par value of $ 0.01 per share. On December 15, 2021, we redeemed 125 preferred shares at a price of $ 1,000 per share and there were no preferred shares outstanding as of December 31, 2022 and 2021. All preferred shares had been issued at a price of $ 1,000 per share and were entitled to a 12.5 % cash dividend, paid semi-annually. 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, would 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 required Morgan Stanley & Co. LLC to purchase shares of our common stock on our behalf when the market price per share was below the book value per common stock, subject to certain daily limits prescribed by the 10b5-1 Purchase Plan. For the period from December 6, 2021 through December 31, 2022 , our full $ 25.0 million commitment was used to repurchase 1,679,570 shares of common stock at an average price per share of $ 14.88 . As of December 31, 2022 all of the capital committed to the 10b5-1 Purchase Plan has been expended. 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 December 31, 2022 Amount Per Amount Per Amount Per Amount Per Dividends declared - common $ 51,672 $ 0.37 $ 51,659 $ 0.37 $ 51,420 $ 0.37 $ 51,202 $ 0.37 Record Date - common stock March 31, 2022 June 30, 2022 September 30, 2022 December 30, 2022 Payment Date - common stock April 15, 2022 July 15, 2022 October 14, 2022 January 13, 2023 For the Quarter Ended March 31, 2021 June 30, 2021 September 30, 2021 December 31, 2021 Amount Per Amount Per Amount Per Amount Per Dividends declared - common $ 50,000 $ 0.37 $ 50,000 $ 0.37 $ 50,000 $ 0.37 $ 51,741 $ 0.37 Dividends declared - preferred (1) $ 4 $ 0.03 $ 4 $ 0.03 $ 4 $ 0.03 $ 4 $ 0.03 Record Date - common stock March 19, 2021 June 16, 2021 September 17, 2021 December 31, 2021 Payment Date - common stock April 1, 2021 July 7, 2021 October 7, 2021 January 15, 2022 (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. For the Quarter Ended March 31, 2020 June 30, 2020 September 30, 2020 December 31, 2020 Amount Per Amount Per Amount Per Amount Per Dividends declared - common $ 56,000 $ 0.43 $ 59,000 $ 0.44 $ 50,000 $ 0.37 $ 50,000 $ 0.37 Dividends declared - preferred $ 8 $ 0.03 $ 8 $ 0.03 $ 8 $ 0.03 $ 8 $ 0.03 Record Date - common stock March 4, 2020 June 18, 2020 September 29, 2020 December 22, 2020 Payment Date - common stock April 2, 2020 July 1, 2020 October 1, 2020 January 4, 2021 |
Earnings per Share
Earnings per Share | 12 Months Ended |
Dec. 31, 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 December 31, 2022, 2021 and 2020 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): Year Ended December 31, December 31, December 31, Net income attributable to common stockholders $ 112,064 $ 170,537 $ 202,378 Dividends on participating securities ( 2,397 ) - - Participating securities' share in earnings - - - Basic earnings $ 109,667 $ 170,537 $ 202,378 Weighted average shares of common stock (1) 139,306,311 134,539,645 132,980,316 Net income per share of common stock, basic $ 0.79 $ 1.27 $ 1.52 (1) Amounts at December 31, 2020 include fully vested RSUs, which includes 877,498 common stock underlying vested RSUs. Amounts at December 31, 2022 include fully vested RSUs, which include 6,850 common stock underlying vested RSUs. For the years ended December 31, 2022, 2021, and 2020 , 1,190,126 , 0 , and 0 weighted average unvested restricted stock units ("RSUs"), respectively, were excluded from the calculation of diluted EPS because the effect was anti-dilutive. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 11. Related Party Transactions Our activities 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 our day-to-day operations. 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): Year Ended December 31, December 31, December 31, Management fees $ 39,461 $ 39,135 $ 38,960 Incentive fees — — 7,766 Total $ 39,461 $ 39,135 $ 46,726 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 December 31, 2022 and 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. 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 our consolidated balance sheets at years ended December 31, 2022 and 2021. 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 years ended December 31, 2022, 2021, and 2020 , we incurred $ 1.3 million, $ 0 and $ 0.1 million of reimbursements of out-of-pocket costs incurred on our behalf by our Manager, respectively, which are included in general and administrative expenses on our consolidated statements of operations. As of December 31, 2022 and 2021, $ 0.7 million and $ 0 of reimbursements of out-of-pocket costs due to our Manager are included in other liabilities on our consolidated balance sheets. Loans Receivable Held-for-Investment As of December 31, 2022 and 2021, we have one loan with an unpaid principal balance of $ 97.8 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 our common stock outstanding as of December 31, 2022 . |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 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 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 $ 18.72 per share based on the closing price of our common stock on the date of grant. 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 stock-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 our common stock on such date. 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 the 877,498 time-based RSUs was recognized immediately and 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 stock. During the year ended December 31, 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 stock as of year ended 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. During the year ended December 31, 2021, 525,206 performance based RSUs were forfeited. Upon completion of our IPO in November 2021, 1,097,293 RSUs immediately vested and dividend equivalents of $ 4.9 million were paid. For the years ended December 31, 2022, 2021, and 2020 , we recognized $ 7.5 million, $ 8.8 million, and $ 5.7 million, respectively, of stock-based compensation expense related to the RSUs. Stock-based compensation expense is considered non-cash compensation expense for the years ended December 31, 2022, 2021, and 2020. 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, during the year ended December 31, 2022, we issued 6,850 of deferred RSUs in lieu of cash fees to such directors, and recognized a related expense of approximately $ 98,000 , which is included in general and administrative expenses on our consolidated statements of operations. 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 December 31, 2022 , total unrecognized compensation expense was $ 33.0 million based on the grant date fair value of RSUs granted. This expense is expected to be recognized over a remaining period of 2.4 years from December 31, 2022. The following table details the time-based RSU activity during the years ended December 31, 2022 and 2021: Time-based Restricted Performance-based Restricted Number of Restricted Weighted- Number of Restricted Weighted- Unvested, December 31, 2021 — $ — — $ — Granted 2,159,280 $ 18.74 — — Unvested, December 31, 2022 2,159,280 $ 18.74 — $ — Time-based Restricted Performance-based Restricted Number of Restricted Weighted- Number of Restricted Weighted- Unvested, December 31, 2020 — $ — 1,622,499 $ 20.00 Forfeited/cancelled — — ( 525,206 ) — Vested — — ( 1,097,293 ) $ ( 20.00 ) Unvested, December 31, 2021 — $ — — $ — |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 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 years ended December 31, 2022, 2021, and 2020. 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. For years ended December 31, 2022, 2021 and 2020, the Company did not record a provision for income taxes, which was due to a full valuation allowance that was established against deferred taxes. At December 31, 2022 and 2021 , due to a full valuation allowance that was established against our deferred tax assets, we did no t have a deferred tax asset or deferred tax liability. The deferred tax asset and valuation allowance at December 31, 2022 were $ 16.6 million and $ 16.6 million, respectively. The deferred tax asset and valuation allowance at December 31, 2021 were $ 14.6 million and $ 14.6 million, respectively. The components of the deferred tax asset at December 31, 2022 consisted of an investment basis difference in real estate owned of approximately $ 4.0 million, a net operating loss carryforward of approximately $ 14.7 million, and net unrealized gain (a deferred tax liability) of approximately $ 2.1 million. The components of the deferred tax asset at December 31, 2021 consisted of an investment basis difference in real estate owned of approximately $ 4.0 million and a net operating loss carryforward of approximately $ 10.6 million. 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, if applicable, are included as a component of the provision for income taxes in our consolidated statements of income. As of December 31, 2022 and 2021 , we have no t recorded any amounts for uncertain tax positions. The federal statutory rate for the years ended December 31, 2022, 2021, and 2020 was 21 %. The Company’s effective tax rate differs from its combined U.S. federal, state and local corporate statutory tax rate primarily due to income earned at the REIT, which is not subject to tax, due to the deduction for qualifying distributions made by the Company, and any change in the valuation allowance. Our tax returns are subject to audit by taxing authorities. Tax years 2019 onwards remain open to examination by major taxing jurisdictions in which we are subject to taxes. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 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 December 31, 2022 and 2021 , we contributed $ 163.1 million and $ 162.1 million, respectively, to CMTG/TT and have received return of capital distributions of $ 123.3 million, of which $ 111.1 million were recallable. As of December 31, 2022 and 2021 , CMTG’s remaining capital commitment to CMTG/TT was $ 72.9 million and $ 73.8 million, respectively. As of December 31, 2022 and 2021, we had aggregate unfunded loan commitments of $ 1.9 billion and $ 1.1 billion respectively, which amounts will generally be funded to finance lease-related or capital expenditures by our borrowers, subject to them 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 . Our contractual payments due under all borrowings were as follows as of December 31, 2022 ($ in thousands): Year Amount (1) 2023 (2) 386,660 2024 853,634 2025 1,500,210 2026 1,870,234 2027 1,077,623 Total $ 5,688,361 (1) Contractual paydowns under all borrowings are based on the earlier of (i) the fully extended maturity date of each agreement, or (ii) the fully extended maturity of our underlying loans. (2) Assumes two loans with aggregate borrowings outstanding of $ 75.2 million that are in maturity default, with fully extended maturities before December 31, 2022, 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 | 12 Months Ended |
Dec. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 15. Subsequent Events We have evaluated subsequent events through the filing of this Annual Report on Form 10-K and determined that the following events or transactions have occurred: 1. We received the full repayment of 1 loan with an unpaid principal balance of $ 75.0 million at December 31, 2022 . |
Schedule IV - Mortgage Loans on
Schedule IV - Mortgage Loans on Real Estate | 12 Months Ended |
Dec. 31, 2022 | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Abstract] | |
Schedule IV - Mortgage Loans on Real Estate | Claros Mortgage Trust, Inc. Schedule IV - Mort gage Loans on Real Estate As of December 31, 2022 ($ in thousands, except for number of loans) Type of Loan (2) Description/Location Number Interest (1) Maximum (3) Periodic (4) Prior (5) Face Carrying (6) (7) Principal Senior Mortgage Loans Senior loans in excess of 3% of the carrying amount of total loans Senior mortgage loan Multifamily/West + 2.90 % 2027 I/O N/A $ 399,499 $ 396,894 $ - Senior mortgage loan Multifamily/Northeast + 2.75 % 2026 I/O N/A 390,000 388,918 - Senior mortgage loan Hospitality/Northeast + 5.44 % 2023 I/O N/A 280,000 281,123 - Senior mortgage loan Hospitality/Southeast + 4.80 % 2026 I/O N/A 224,079 222,928 - Senior mortgage loan For-Sale Condo/West + 4.95 % 2024 I/O N/A 221,605 221,605 221,605 N/A 1,515,183 1,511,468 221,605 Senior loans less than 3% of the carrying amount of total loans Senior mortgage loans Various 68 Floating: + 2.75 % - 10.50 % 2020 - 2029 I/O N/A 5,835,652 5,729,691 522,297 Fixed: 10.00% Subordinate Loans Subordinate loans less than 3% of the carrying amount of total loans Mezzanine loans Various 4 Floating: + 10.51 & 12.75 % 2022 - 2027 I/O N/A 187,690 187,615 32,902 Fixed: 7.35% & 8.50% Total loans N/A $ 7,538,525 $ 7,428,774 $ 776,804 General CECL reserve N/A N/A $ ( 68,347 ) N/A Total loans after general CECL reserves N/A $ 7,538,525 $ 7,360,427 $ 776,804 (1) As a spread over one month LIBOR or SOFR. (2) Includes loans receivable held-for-investment and interests in loans receivable held-for-investment (3) Maximum maturity date assumes all extension options are exercised. (4) I/O = interest only until final maturity unless otherwise noted, P = Loans are subject to spread maintenance premiums or other prepayment penalty if paid before date specified within the loan agreement. (5) Represents third party liens only (6) The tax basis of the loans included above is $ 7,490,392 as of December 31, 2022 . (7) Includes specific CECL reserve of $ 60.3 million. Reconciliation of Mortgage Loans on Real Estate (1) 2022 2021 Balance at January 1, $ 6,502,145 $ 6,464,095 Additions during period: Loan fundings 2,647,363 3,056,293 Payment in kind interest 80,878 88,024 Amortization of deferred fees and expenses 24,967 26,487 Realized gain on sale of investments 30,701 — Deductions during period: Collections of principal, including sales proceeds ( 1,810,438 ) ( 2,926,566 ) Deferred origination fees and expenses ( 42,039 ) ( 39,361 ) Realized loss on sale of investments — ( 141 ) Transfer to real estate owned — ( 103,901 ) Provision for current expected credit losses (2) ( 73,150 ) ( 62,785 ) Balance at December 31, $ 7,360,427 $ 6,502,145 (1) Includes Mortgage and Mezzanine loans See Note 3 – Loans Portfolio of the consolidated financial statements for information on current expected credit losses. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 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”). We consolidate all entities that are controlled either through majority ownership or voting rights. We also identify entities for which control is achieved through means other than through voting rights (a variable interest entity or "VIE") using the analysis as set forth in Accounting Standards Codification ("ASC") 810, Consolidation of Variable Interest Entities and determines when and which variable interest holder, if any, should consolidate the VIE. We have no consolidated variable interest entities as of December 31, 2022 and 2021. All significant intercompany transactions and balances have been eliminated in consolidation. |
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 current expected credit loss reserve and impairment of certain assets. |
Risks and Uncertainties [Open to conform to updated summary of risk factors] | Risks and Uncertainties In the normal course of business, we primarily encounter two significant types of economic risk: credit and market. Credit risk is the risk of default on our loans receivable that results from a borrower's or counterparty's inability or unwillingness to make contractually required payments. Market risk reflects changes in the value of the loans receivable due to changes in interest rates, spreads or other market factors, including risks that impact the value of the collateral underlying our investments. We believe that the carrying values of our loans receivable are reasonable taking into consideration these risks along with estimated financings, collateral values and other information. 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. COVID-19 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 raised interest rates in 2022 and has indicated that it foresees further interest rate increases in 2023. 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. On March 5, 2021, the Financial Conduct Authority of the U.K. (the “FCA”), which regulates LIBOR, announced (the “FCA Announcement”) that all relevant LIBOR tenors will cease to be published or will no longer be representative after June 30, 2023. The FCA Announcement coincides with the March 5, 2021 announcement of LIBOR’s administrator, the ICE Benchmark Administration Limited (the “IBA”), indicating that, as a result of not having access to input data necessary to calculate relevant LIBOR tenors on a representative basis after June 30, 2023, the IBA would have to cease publication of such LIBOR tenors immediately after the last publication on June 30, 2023. Further, on March 15, 2022, the Consolidated Appropriations Act of 2022, which includes the Adjustable Interest Rate (LIBOR) Act, was signed into law in the United States. This legislation establishes a uniform benchmark replacement process for financial contracts maturing after June 30, 2023 that do not contain clearly defined or practicable fallback provisions. The legislation also creates a safe harbor that shields lenders from litigation if they choose to utilize a replacement rate recommended by the Board of Governors of the Federal Reserve. The United States Federal Reserve has also advised banks to cease entering into new contracts that use USD LIBOR as a reference rate. The Federal Reserve, in conjunction with the Alternative Reference Rate Committee, a committee convened by the Federal Reserve that includes major market participants, has identified the Secured Overnight Financing Rate, or SOFR, a new index calculated by short-term repurchase agreements, backed by Treasury securities, as its preferred alternative rate for LIBOR. There are significant differences between LIBOR and SOFR, such as LIBOR being an unsecured lending rate while SOFR is a secured lending rate, and SOFR is an overnight rate while LIBOR reflects term rates at different maturities. If our LIBOR-based borrowings are converted to SOFR, the differences between LIBOR and SOFR, could result in higher interest costs for us, which could have a material adverse effect on our operating results. Although SOFR is the ARRC’s recommended replacement rate, it is also possible that lenders may instead choose alternative replacement rates that may differ from LIBOR in ways similar to SOFR or in other ways that would result in higher interest costs for us. We cannot predict the effect of the decision not to sustain LIBOR, or the potential transition to SOFR or another alternative reference rate as LIBOR’s replacement. Regardless, there can be no assurances as to what additional alternative base rates may be and whether such base rate will be more or less favorable than LIBOR and any other unforeseen impacts of the discontinuation of LIBOR. We are actively assessing and monitoring the risks associated with the planned discontinuation or unavailability of certain reference rates, including LIBOR, and the transition to alternative reference rates, but can provide no assurances regarding the impact of the discontinuation of LIBOR. Tax Risks - We are subject to significant tax risks. If we fail to maintain our qualification as a REIT in a given taxable year, we may be subject to penalties as well as federal, state and local income tax on our taxable income, which could be material. We will also not be able to qualify as a REIT for the subsequent four taxable years, unless entitled to relief under certain statutory provisions. A REIT must distribute at least 90% of its taxable income to its stockholders, determined without regard to the deduction for dividends paid and excluding net capital gains. In addition to the 90% distribution requirement, a REIT is subject to a nondeductible excise tax if it fails to make certain minimum distributions by calendar year-end. The excise tax imposed is equal to 4% of the excess of the required distribution (specified under U.S. federal tax law) over the distributed amount for such year. Distribution of the remaining balance may extend until timely filing of the REIT’s tax return in the subsequent taxable year. Qualifying distributions of taxable income are deductible by a REIT in computing taxable income. Regulatory Risks - We are subject to significant regulatory risks. If we were unable to rely upon an exemption from registration available under the Investment Company Act of 1940, as amended, we could be required to restructure its assets or activities, including the disposition of assets during periods of adverse market conditions that could result in material losses to us. |
Loans Receivable Held-for-Investment | Loans Receivable Held-for-Investment Loans that we have originated or acquired and have the intent and ability to hold to maturity or payoff are reported at their unpaid principal balances net of any unearned income, unamortized deferred fees and expected credit losses, if applicable. Loan origination, extension and exit fees are deferred and recognized in interest income over the estimated life of the loans using the effective interest method, adjusted for actual prepayments. |
Interests in Loans Receivable Held-for-Investment | Interests in Loans Receivable Held-for-Investment Loans that we have acquired in a transfer that did not meet the qualifications of a sale and have the intent and ability to hold to maturity or payoff are reported at their unpaid principal balances net of any unearned income, unamortized deferred fees and expected credit losses, if applicable. Loan discounts, extension fees and exit fees are deferred and recognized in interest income over the estimated life of the loans using the effective interest method, adjusted for actual prepayments. |
Non-cash Advances in Lieu of Interest | Non-cash Advances in Lieu of Interest We hold certain loans whereby a portion of the loan’s unfunded commitment may be used to fund monthly interest payments, so long as certain conditions are met. As a result, such loan’s unpaid principal balance increases on the interest payment date and we do not receive cash. This feature is referred to as non-cash advance in lieu of interest, and the increase in unpaid principal balance is reflected in the operating section of our consolidated statements of cash flows, as opposed to the investing section as if the cash had been directly advanced to a borrower. We also have certain financings that allow for non-cash advances in lieu of interest, and the increase in unpaid principal balance is reflected in the operating section of our consolidated statements of cash flows, as opposed to the financing section as if cash had been directly received by us. |
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 reserve 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 reserve are recognized through a provision for or reversal of current expected credit loss reserve 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 macroeconomic forecasts for the duration of each loan. General CECL Reserve 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 is 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 December 31, 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, adjusted for projected fundings from interest reserves if applicable, which is considered in the estimate of the general CECL reserve. 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, property or collateral location, loan type and other more subjective variables that include 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 specific CECL reserve 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 Reserve 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 and 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. For such loan we would measure the specific reserve 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 reserve is created as a component of our overall current expected credit loss reserve (following the adoption of CECL, or as a loan loss reserve prior to the adoption of CECL). Specific reserves are equal to the excess of a loan’s carrying value to the net present value of its expected future 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 from the sale of the collateral. If we have determined that a loan or a portion of a loan is uncollectible, we will write-off the loan through an adjustment to our current expected credit loss reserve based on the net present value of expected future cash flows or the fair value of the collateral less costs to sell, if repayment is expected from the sale of 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 Reserve please refer to Note 3—"Loans Portfolio—Current Expected Credit Losses”. |
Financial Instruments | Financial Instruments Financial instruments held by us include cash and cash equivalents, restricted cash, loan principal payments held by servicer, loans receivable held-for-investment, interests in loans receivable held for investment, other assets, other liabilities, repurchase agreements, term participations, notes payable, loan participations sold, secured term loans and debt related to real estate owned. The fair value of cash and cash equivalents, restricted cash, loan principal payments held by servicer, and other liabilities approximates their current carrying amount. GAAP requires the categorization of the fair value of financial instruments into three broad levels that form a hierarchy based on the transparency of inputs to the valuation. See Note 8 – Fair Value Measurements for details of our valuation policy. |
Cash and Cash Equivalents | Cash and Cash Equivalents We consider all investments with original maturities of three months or less, at the time of acquisition, to be cash equivalents. We maintain cash accounts which from time to time exceed the insured maximum of $ 250,000 per account. The carrying amount of such cash and cash equivalents approximates fair value. |
Restricted Cash | Restricted Cash Restricted cash includes reserve balances for interest, real estate taxes, and insurance, as well as lockbox accounts held pursuant to the terms of certain financings. The carrying amount of restricted cash approximates fair value. |
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 estimated useful lives ranging from 5 to 40 years . 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 carrying amount 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. There were no impairments of our real estate owned as of December 31, 2022. Debt assumed in an acquisition/foreclosure of real estate is recorded at its estimated fair value at the time of the acquisition and is subsequently presented net of unamortized debt issuance costs. Debt related to real estate owned is non-recourse to us. |
Equity Method Investment | Equity Method Investment We account for our investments in entities in which we have the ability to significantly 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 other than temporary impairment of our equity investments. There were no other than temporary impairments of our equity method investment as of December 31, 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 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 any derivatives as hedges to qualify for hedge accounting for financial reporting purposes and fluctuations in the fair value of derivatives have been recognized as unrealized gain on interest rate cap in the accompanying consolidated statements of operations. Payments received from our counterparties in connection with our derivative are recognized on our consolidated statements of operations as proceeds from interest rate cap. |
Other Assets | Other Assets Other assets include accrued 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 certain financing facilities, derivative financial instruments, and repurchased shares not yet settled. |
Deferred Financing Costs | Deferred Financing Costs Deferred financing costs included within other assets on our consolidated balance sheets include costs related to the establishment and ongoing operations of repurchase agreements and term participation facility. These costs are amortized as interest expense using the straight-line method over the contractual term of the repurchase agreements or the contractual term of the collateral asset for the term participation facility. Costs related to obtaining notes payable, loan participations sold, secured term loans, and debt related to real estate owned are presented on our consolidated balance sheets as a direct deduction from the carrying amount of the obligations. These costs are amortized over the contractual term of the obligations as interest expense using the effective interest method. |
Secured Financings | Secured Financings We evaluate whether a financing transaction constitutes a sale through legal isolation of the transferred financial asset from us, the ability of the transferee to pledge or exchange the transferred financial asset without constraint and the transfer of control of the transferred financial asset. |
Repurchase Agreements | Repurchase Agreements We finance certain of our loans receivable using repurchase agreements. Under a repurchase agreement, an asset is sold to a counterparty to be repurchased at a later date at a predetermined price. Prior to repurchase, interest is paid to the counterparty based upon the sales price and a predetermined interest rate. Other than amounts guaranteed by us, borrowings under the repurchase agreements are non-recourse to us. In some cases, the repurchase facility counterparty has the benefit of cross-collateralization across the loans in the facility. We account for our repurchase agreements as secured financings under GAAP. When treated as a secured financing, the transferred assets remain on our consolidated balance sheets, and the financing proceeds are recorded as a liability. |
Term Participation Facility | Term Participation Facility We financed certain of our loans receivable through selling a senior interest in the loan receivable to a counterparty. The facility provides for capacity to finance additional loans receivable. The lender has the benefit of cross-collateralization across the loans in the facility. We present the term participation facility as a liability on our consolidated balance sheets. |
Loan Participations Sold, Net | Loan Participations Sold, Net Loan participations sold represent an interest in a loan receivable that we sold, however, we present the loan participation sold as a liability on our consolidated balance sheets because the arrangement does not qualify as a sale under GAAP. Other than amounts guaranteed by us, these participations are non-recourse and remain on our consolidated balance sheets until the loan is repaid. The gross presentation of the loan participations sold does not impact equity or net income. |
Notes Payable, Net | Notes Payable, Net We finance certain of our loans receivable using direct financing, collateralized by the loans receivable. Other than amounts guaranteed by us, borrowings under notes payable are non-recourse to us. |
Secured Term Loan, Net | Secured Term Loan, Net Our secured term loan is collateralized by a pledge of equity in certain subsidiaries and their related assets, as well as a first priority security interest in selected assets. The secured term loan is presented net of any original issue discount, and transaction expenses are deferred and recognized in interest expense over the life of the loan using the effective interest method. |
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 unpaid principal balance 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. Once income accrual is suspended, any previously recognized interest income deemed uncollectible is reversed against interest income. 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. In accordance with ASC 606, Revenue from Contracts with Customers , revenue is recognized when we transfer promised services to customers in an amount that reflects the consideration to which we expect to be entitled to in exchange for those services. ASC 606 includes a five-step framework that requires an entity to: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract, and (v) recognize revenue when the entity satisfies a performance obligation. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer. A contract's transaction price is allocated to each distinct performance obligation and recognized as revenue when the performance obligation is satisfied. Our contracts generally have a single performance obligation, such as renting a hotel room to a customer, or providing food and beverage to a customer, or providing a hotel property related good or service to a customer. Our performance obligations are generally satisfied at a point in time. 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. |
Stock-Based Compensation | Stock-Based Compensation Stock-based compensation consists of both time-based and performance-based awards issued to certain individuals employed by (or members of) affiliates of the Manager. 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. |
Redeemable Common Stock | Redeemable Common Stock We account for our common stock subject to possible redemption in accordance with the guidance in ASC 480, Distinguishing Liabilities from Equity . Conditionally redeemable common stock (including common stock that features redemption rights that are either within the control of the holder or subject to redemption upon the occurrence of uncertain events not solely within our control) is classified as temporary equity. At all other times, common stock is classified as stockholders’ equity. Certain of our common stock featured certain redemption rights that are considered to be outside of our control and subject to occurrence of uncertain future events. These rights terminated upon the completion of our initial public offering on November 3, 2021. Accordingly, on this date redeemable common stock was reclassified to common stock at its redemption value. References to common stock in 2021 and 2020 include redeemable common stock. |
Common Stock | Common Stock Common stock issued and outstanding excludes Restricted Stock Units (“RSUs”) which have not been delivered, regardless of vesting status. Fully vested RSUs are included in the calculation of basic and diluted weighted-average shares outstanding and receive dividends payable on common stock. On October 6, 2021, we effected a reverse stock split of shares of our common stock on a 2-for-1 basis. All references to common stock outstanding, restricted stock units, share data and per common stock share amounts have been stated to reflect the effect of the reverse stock split for all periods presented. |
Non-Controlling Interests | Non-Controlling Interests The non-controlling interests included on our consolidated balance sheet as of December 31, 2021 represented the common equity interests in CMTG/TT Mortgage REIT LLC ("CMTG/TT") that were not owned by us. Effective August 1, 2022, the operating agreement of CMTG/TT was amended and we are not deemed to be the primary beneficiary in accordance with ASC 810 and do not consolidate the joint venture. See Note 4 - Equity Method Investment for further detail. Prior to August 1, 2022, the portion of CMTG/TT's consolidated equity and results of operations allocated to non-controlling interest was equal to the remaining 49 % ownership of CMTG/TT. As of December 31, 2021, CMTG/TT’s total equity was $ 76.8 million of which $ 37.6 million was characterized as non-controlling interests. |
Offering Costs | Offering Costs Certain costs related to equity offerings, including legal, professional accounting and other third-party fees that are directly associated with equity offerings, are recorded in stockholders' equity as a reduction of additional paid-in capital. For the years ended December 31, 2022, 2021, and 2020 we incurred offering costs of $ 30,000 , $ 11.8 million, and $ 0.9 million, respectively, which have been charged against additional paid-in capital on the consolidated balance sheets. |
Repurchased Shares | Repurchased Shares We account for the repurchases of our common stock based on the settlement date. Payments for stock repurchases that are not yet settled as of the reporting date are included in other assets on our consolidated balance sheets. As of December 31, 2022, we have not retired any repurchased shares. |
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, our Chief Operating Decision Maker (CODM) 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 December 31, 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) | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
Schedule of Loans and Financing Receivable | Our loans receivable portfolio as of December 31, 2022 was comprised of the following loans ($ in thousands, except for number of loans): Number of Loan Commitment (1) Unpaid Principal Balance Carrying (2) Weighted Average Spread (3) Weighted Average Interest Rate (4) Loans receivable held-for- Variable: Senior loans (5) 71 $ 9,221,549 $ 7,327,462 $ 7,217,564 + 3.92% 8.05 % Subordinate loans 2 63,102 61,763 61,947 + 11.55% 15.95 % 73 9,284,651 7,389,225 7,279,511 + 3.98% 8.11 % Fixed: Senior loans (5) 2 $ 23,373 $ 23,373 $ 23,595 8.50 % Subordinate loans 2 125,927 125,927 125,668 8.49 % 4 149,300 149,300 149,263 8.49 % Total/Weighted Average 77 $ 9,433,951 $ 7,538,525 $ 7,428,774 8.12 % General CECL reserve ( 68,347 ) Loans receivable held-for-investment, net $ 7,360,427 (1) Loan commitment represents principal outstanding plus remaining unfunded loan commitments. (2) Net of specific CECL reserve of $ 60.3 million. (3) The weighted average is expressed as a spread over the relevant floating benchmark rates. One-month LIBOR and SOFR as of December 31, 2022 were 4.39 % and 4.36 % , respectively. Weighted average is based on unpaid principal balance as of December 31, 2022 . For loans placed on non-accrual, the spread used in calculating the weighted average spread is 0% . (4) 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 unpaid principal balance as of December 31, 2022 and includes loans on non-accrual status. For loans placed on non-accrual, the interest rate used in calculating the weighted average spread is 0% . (5) Senior loans include senior mortgages and similar loans, including related contiguous subordinate loans (if any), and pari passu participations in senior mortgage loans. 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 (1) Unpaid Principal Carrying (2) Weighted Average Spread (3) Weighted Average Interest Rate (4) Loans receivable held-for-investment Variable: Senior loans (5,6) 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 (5) 3 $ 62,573 $ 62,573 $ 56,449 N/A 10.09 % Subordinate loans 2 125,927 125,927 125,620 N/A 8.49 % 5 188,500 188,500 182,069 9.02 % Total/Weighted Average 59 $ 7,488,611 $ 6,441,238 $ 6,400,972 N/A 5.40 % General CECL reserve ( 60,677 ) Loans receivable held-for-investment, net $ 6,340,295 (1) Loan commitment represents principal outstanding plus unfunded loan commitments. (2) Net of specific CECL reserve of $ 6.3 million. (3) 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 unpaid principal balance as of December 31, 2021 and includes loans on non-accrual status. (4) 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 unpaid principal balance as of December 31, 2021 and includes loans on non-accrual status . (5) Senior loans include senior mortgages and similar loans, including related contiguous subordinate loans (if any), and pari passu participations in senior mortgage loans. (6) Includes a fixed rate loan with an unpaid 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 unpaid principal balance of $ 103.1 million and a loan commitment of $ 104.4 million at December 31, 2021 . |
Schedule of Loan Receivable Portfolio | Activity relating to the loan receivable portfolio for the years ended December 31, 2022 and 2021 ($ in thousands): Unpaid Principal Balance Deferred Fees Specific CECL Reserve 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 2,030,456 - - 2,030,456 Advances on existing loans 602,254 - - 602,254 Non-cash advances in lieu of interest 77,004 1,447 - 78,451 Origination fees, extension fees and exit fees - ( 41,537 ) - ( 41,537 ) Repayments of loans receivable ( 1,463,271 ) - - ( 1,463,271 ) Repayments of non-cash advances in lieu of interest ( 21,609 ) - - ( 21,609 ) Accretion of fees - 24,763 - 24,763 Sale proceeds ( 146,912 ) - - ( 146,912 ) Gain (loss) on sale 30,892 ( 191 ) - 30,701 Specific CECL reserve - - ( 65,494 ) ( 65,494 ) Principal charge-offs ( 11,527 ) - 11,527 - Balance at December 31, 2022 $ 7,538,525 $ ( 49,451 ) $ ( 60,300 ) $ 7,428,774 General CECL reserve $ ( 68,347 ) Carrying Value $ 7,360,427 (1) Balance at December 31, 2021 does not include general CECL reserve. Unpaid Principal Balance Deferred Fees Specific CECL Allowance Carrying Value (1) Balance at December 31, 2020 $ 6,152,331 $ ( 20,506 ) $ ( 6,000 ) $ 6,125,825 Initial funding of new loan originations and acquisitions 2,331,328 - - 2,331,328 Advances on existing loans 623,198 - - 623,198 Non-cash advances in lieu of interest 68,859 432 - 69,291 Origination fees, extension fees and exit fees - ( 39,096 ) - ( 39,096 ) Repayments of loans receivable ( 2,453,804 ) - - ( 2,453,804 ) Repayments of non-cash advances in lieu of interest ( 126,865 ) - - ( 126,865 ) Accretion of fees - 25,237 - 25,237 Sale proceeds ( 48,006 ) - - ( 48,006 ) Gain (loss) on sale ( 141 ) - - ( 141 ) Specific CECL Allowance - - ( 2,094 ) ( 2,094 ) Transfer to real estate owned, net ( 103,901 ) - - ( 103,901 ) Principal charge-offs ( 1,761 ) - 1,761 - Balance at December 31, 2021 $ 6,441,238 $ ( 33,933 ) $ ( 6,333 ) $ 6,400,972 General CECL Allowance $ ( 60,677 ) Carrying Value $ 6,340,295 Our loan participations sold as of December 31, 2022 are summarized as follows ($ in thousands): Contractual Maximum Borrowings Outstanding Carrying Carrying (1) 8/1/2023 8/1/2023 $ 138,322 $ 138,322 $ 281,123 10/18/2023 10/18/2024 105,930 105,645 192,355 12/31/2024 12/31/2025 20,000 19,831 157,833 Total $ 264,252 $ 263,798 $ 631,311 (1) Includes cash reserve balances. Our loan participations sold as of December 31, 2021 are summarized as follows ($ in thousands): Contractual Maximum Borrowings 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 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 December 31, 2022 and 2021 ($ in thousands): December 31, 2022 December 31, 2021 Loan Type (1) Carrying Value (1) Percentage Carrying Value (2) Percentage Senior loans (3) $ 7,241,159 97 % $ 6,303,664 96 % Subordinate loans 187,615 3 % 259,172 4 % $ 7,428,774 100 % $ 6,562,836 100 % General CECL reserve $ ( 68,347 ) $ ( 60,691 ) $ 7,360,427 $ 6,502,145 Property Type Carrying Value (1) Percentage Carrying Value (2) Percentage Multifamily $ 3,044,892 41 % $ 1,986,628 30 % Hospitality 1,551,946 20 % 1,176,842 18 % Office 1,086,018 15 % 1,113,805 17 % Mixed-use (4) 615,599 8 % 734,613 11 % For Sale Condo 434,210 6 % 710,660 11 % Land 426,645 6 % 631,713 10 % Other 269,464 4 % 208,575 3 % $ 7,428,774 100 % $ 6,562,836 100 % General CECL reserve $ ( 68,347 ) $ ( 60,691 ) $ 7,360,427 $ 6,502,145 Geographic Location Carrying Value (1) Percentage Carrying Value (2) Percentage United States West $ 2,450,710 33 % $ 1,156,896 17 % Northeast 1,999,648 27 % 2,734,550 42 % Southeast 1,008,590 14 % 836,904 13 % Mid Atlantic 809,908 11 % 1,235,527 19 % Southwest 694,887 9 % 269,461 4 % Midwest 461,531 6 % 309,298 5 % Other 3,500 0 % 20,200 0 % $ 7,428,774 100 % $ 6,562,836 100 % General CECL reserve $ ( 68,347 ) $ ( 60,691 ) $ 7,360,427 $ 6,502,145 (1) Net of specific CECL reserve of $ 60.3 million. (2) Net of specific CECL reserve of $ 6.3 million. (3) Senior loans include senior mortgages and similar credit quality loans, including related contiguous subordinate loans and pari passu participations in senior mortgage loans. (4) Mixed-use comprises of 4 % 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 years ended December 31, 2022, 2021 and 2020 ($ in thousands): Year Ended December 31, 2022 December 31, 2021 December 31, 2020 Coupon interest $ 441,320 $ 386,731 $ 413,228 Interest on cash, cash equivalents, and other income 4,381 2,045 4,402 Accretion of fees 24,967 26,487 28,310 Total interest and related income (1) $ 470,668 $ 415,263 $ 445,940 (1) We recognized $ 5.1 million, $ 7.3 million, and $ 5.9 million in pre-payment penalties and accelerated fees during the years ended December 31, 2022, 2021, and 2020 respectively. |
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 as of December 31, 2022 and 2021 ($ in thousands): December 31, 2022 Risk Rating Number of Loans Unpaid Principal Balance Carrying Value (1) % of Total of Carrying Value 1 - $— $— 0 % 2 1 927 913 0 % 3 63 6,181,207 6,136,300 83 % 4 10 1,005,345 1,001,235 13 % 5 3 351,046 290,326 4 % 77 $ 7,538,525 $ 7,428,774 100 % General CECL reserve ( 68,347 ) $ 7,360,427 (1) Net of specific CECL reserve of $ 60.3 million. December 31, 2021 Risk Rating Number of Loans Unpaid Principal Balance Carrying Value (1) % of Total of Carrying Value 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 20,200 0 % 60 $ 6,602,804 $ 6,562,836 100 % General CECL reserve ( 60,691 ) $ 6,502,145 (1) Net of specific CECL reserve of $ 6.3 million. |
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 December 31, 2022 ($ in thousands): Property Type Location Risk Rating Unpaid Principal Balance Carrying Value Before Specific CECL Reserve Specific Carrying Value Interest Recognition Method / as of Date Multifamily CA 5 $ 138,749 $ 138,329 $ ( 18,293 ) $ 120,036 Cost recovery / 12/1/2022 Mixed-Use NY 5 208,797 208,797 ( 42,007 ) 166,790 Cash basis / 11/1/2022 (1) Land NY 4 67,000 67,000 - 67,000 Cash basis / 11/1/2021 Other Other 5 3,500 3,500 - 3,500 Cost recovery / 7/1/2020 Total non-accrual (2) $ 418,046 $ 417,626 $ ( 60,300 ) $ 357,326 (1) Interest income of $ 1.1 million was recognized on this loan while on non-accrual status during the year ended December 31, 2022 . (2) Loans classified as non-accrual represented 4.8 % of the total loan portfolio at December 31, 2022 , based on carrying value. Excludes three loans with an aggregate carrying value of $ 360.0 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): Property Type Location Risk Rating Unpaid Principal Balance Carrying Value Before Specific CECL Reserve Specific Carrying Value Interest Recognition Method / as of Date Hospitality CA 4 81,380 77,530 - 77,530 Cash basis / 12/1/2021 (1) Other Other 5 11,533 11,533 ( 333 ) 11,200 Cost recovery / 5/1/2021 Total current 92,913 89,063 ( 333 ) 88,730 Land NY 4 116,020 116,211 - 116,211 Cash basis / 5/1/2020 Land NY 4 75,579 76,069 - 76,069 Cash basis / 8/1/2020 Land NY 4 67,000 67,000 - 67,000 Cash basis / 11/1/2021 Other Other 5 15,000 15,000 ( 6,000 ) 9,000 Cost recovery / 7/1/2020 Total delinquent 273,599 274,280 ( 6,000 ) 268,280 Total non-accrual (2) $ 366,512 $ 363,343 $ ( 6,333 ) $ 357,010 (1) Interest income of $ 0.4 million was recognized on this loan while on non-accrual status during the year ended December 31, 2021 . (2) Loans classified as non-accrual represented 5.6 % of the total loan portfolio at December 31, 2021, based on carrying value. |
Schedule of Activity In Allowance For Loan Losses | The following table illustrates the quarterly changes in the current expected credit loss reserve for the years ended December 31, 2022 and 2021, respectively ($ in thousands): General CECL Reserve Specific CECL Reserve (1) Loans Receivable Held-for-Investment Interests in Loans Receivable Held-for-Investment Accrued Interest Receivable Unfunded Loan Commitments (2) Total General CECL Reserve Total Total reserve at $ 6,000 $ - $ - $ - $ - $ - $ 6,000 Initial CECL reserve, - 64,274 406 357 13,214 78,251 78,251 Increase (reversal) 2,094 ( 3,597 ) ( 392 ) ( 139 ) ( 6,928 ) ( 11,056 ) ( 8,962 ) Principal charge-offs ( 1,761 ) - - ( 1,761 ) Total reserve, $ 6,333 $ 60,677 $ 14 $ 218 $ 6,286 $ 67,195 $ 73,528 Increase (reversal) 65,494 7,670 ( 14 ) ( 218 ) 11,429 18,867 84,361 Principal charge-offs ( 11,527 ) - - - - - ( 11,527 ) Total $ 60,300 $ 68,347 $ - $ - $ 17,715 $ 86,062 $ 146,362 Reserve at 0.8 % 1.1 % 1.9 % (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 reserve. (2) The CECL reserve 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 rating, which is further discussed above. The following table presents the carrying value of our loans receivable as of December 31, 2022 by year of origination and risk rating ($ in thousands): Carrying Value by Origination Year as of December 31, 2022 Risk Rating Number of Loans Carrying Value (1) 2022 2021 2020 2019 2018 2017 1 0 $ - $ - $ - $ - $ - $ - $ - 2 1 913 - - - - 913 - 3 63 6,136,300 2,074,609 1,727,767 96,781 1,498,612 641,437 97,094 4 10 1,001,235 78,201 165,487 199,838 229,697 328,012 - 5 3 301,853 - - - 135,063 166,790 - Charge-Offs ( 11,527 ) - - - ( 11,500 ) ( 27 ) - 77 $ 7,428,774 $ 2,152,810 $ 1,893,254 $ 296,619 $ 1,851,872 $ 1,137,125 $ 97,094 (1) Net of specific CECL reserves of $ 60.3 million. |
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 loans ($ 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. 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 loan receivable portfolio for the years ended December 31, 2022 and 2021 ($ 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 ) Repayments of non-cash advances in lieu of interest ( 13,178 ) — ( 13,178 ) Accretion of origination fees, net — 204 204 Balance at December 31, 2022 $ — $ — $ — (1) Balance at December 31, 2021 does not include general CECL reserve. |
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 December 31, 2022 December 31, 2021 December 31, 2022 December 31, 2021 Weighted average yield to maturity 8.6 % 5.6 % N/A 6.7 % Weighted average term to fully extended maturity 3.2 years 3.3 years N/A 1.6 years |
Real Estate Owned, Net (Tables)
Real Estate Owned, Net (Tables) | 12 Months Ended |
Dec. 31, 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 December 31, 2022 and 2021 ($ in thousands): December 31, 2022 December 31, 2021 Land $ 123,100 $ 123,100 Building 284,400 284,400 Capital improvements 2,343 - Furniture, fixtures and equipment 6,500 6,500 Real estate owned 416,343 414,000 Less: accumulated depreciation ( 15,154 ) ( 7,113 ) Real estate owned, net $ 401,189 $ 406,887 |
Debt Obligations (Tables)
Debt Obligations (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Summary of Portfolio Financings | The following table summarizes our portfolio financings as of December 31, 2022 and 2021 ($ in thousands): December 31, 2022 December 31, 2021 Capacity Borrowing Outstanding Weighted (1) Capacity Borrowing Outstanding Weighted (1) Repurchase agreements and term (2) $ 5,700,000 $ 4,012,818 + 2.25 % $ 4,065,000 $ 3,274,508 + 2.00 % Repurchase agreements - Side Car 271,171 211,572 + 4.51 % 271,171 215,003 + 4.50 % Loan participations sold 264,252 264,252 + 3.68 % 168,322 168,322 + 3.79 % Notes payable 495,934 154,629 + 3.09 % 48,000 48,000 + 4.00 % Secured Term Loan 755,090 755,090 + 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 $ 7,776,447 $ 5,688,361 + 2.75 % $ 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 and SOFR as of December 31, 2022 were 4.39 % and 4.36 % , respectively. (2) The repurchase facilities are partially recourse to us. The maximum guarantees under our repurchase agreements range from 25 % to 50 % of borrowings outstanding. As of December 31, 2022 and December 31, 2021, the weighted average recourse limitation on our repurchase and term participation facilities was 28 % and 27 %, respectively. |
Summary of Repurchase Agreements | The following table summarizes our repurchase agreements by lender as of December 31, 2022 ($ in thousands): Lender Initial Maturity (1) Fully Maximum Capacity Borrowing Undrawn JP Morgan Chase Bank, N.A. - Main Pool 6/29/2025 6/29/2027 $ 1,500,000 $ 1,272,079 $ 227,921 JP Morgan Chase Bank, N.A. - Side Car 5/27/2023 5/27/2024 271,171 211,572 59,599 Morgan Stanley Bank, N.A. (2) 1/26/2024 1/26/2025 1,000,000 859,624 140,376 Goldman Sachs Bank USA (3) 5/31/2024 5/31/2025 500,000 356,014 143,986 Barclays Bank PLC 12/20/2024 12/20/2025 500,000 176,384 323,616 Deutsche Bank AG, New York Branch 6/26/2023 6/26/2026 400,000 345,583 54,417 Wells Fargo Bank, N.A. 9/29/2023 9/29/2026 800,000 745,603 54,397 Total $ 4,971,171 $ 3,966,859 $ 1,004,312 (1) Facility maturity dates may be extended based on certain conditions being met. (2) On January 24, 2023, we exercised our option to extend the initial maturity of this facility from January 26, 2023 to January 26, 2024 . (3) On January 13, 2023, this facility was modified such that the initial maturity was extended from May 31, 2023 to May 31, 2024 . The following table summarizes our repurchase agreements by lender as of December 31, 2021 ($ in thousands): Lender Initial (1) Fully Maximum Capacity 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, the facility 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. |
Schedule of Liability Under Repurchase Agreements | Liabilities under our repurchase agreements as of December 31, 2022 are summarized as follows ($ in thousands): Lender Borrowing Outstanding Carrying Carrying (1) JP Morgan Chase Bank, N.A. - Main Pool $ 1,272,079 $ 1,272,079 $ 1,815,531 JP Morgan Chase Bank, N.A. - Side Car 211,572 211,572 460,481 Morgan Stanley Bank, N.A. 859,624 859,624 1,340,573 Goldman Sachs Bank USA 356,014 356,014 551,091 Barclays Bank PLC 176,384 176,384 269,973 Deutsche Bank AG, New York Branch 345,583 345,583 591,592 Wells Fargo Bank, N.A. 745,603 745,603 952,845 Total $ 3,966,859 $ 3,966,859 $ 5,982,086 (1) Net of specific CECL reserve of $ 60.3 million. Liabilities under our repurchase agreements as of December 31, 2021 are summarized as follows ($ in thousands): Lender Borrowings Outstanding Carrying Carrying JP Morgan Chase Bank, N.A. - Main Pool $ 1,173,280 $ 1,173,280 $ 1,626,719 JP Morgan Chase Bank, N.A. - Side Car 215,003 215,003 436,325 Morgan Stanley Bank, N.A. 1,000,000 1,000,000 1,709,758 Goldman Sachs Bank USA 410,551 410,551 589,825 Barclays Bank PLC 193,884 193,884 283,716 Deutsche Bank AG, New York Branch 211,372 211,372 327,671 Wells Fargo Bank, N.A. 285,421 285,421 362,742 Total $ 3,489,511 $ 3,489,511 $ 5,336,756 |
Schedule of Term Participations | Our term participations as of December 31, 2022 are summarized as follows (in thousands): Contractual Maturity Date Borrowing Outstanding Carrying Value Carrying Value of Collateral 12/21/2027 $ 257,531 $ 257,531 $ 375,769 |
Schedule of Loan Receivable Portfolio | Activity relating to the loan receivable portfolio for the years ended December 31, 2022 and 2021 ($ in thousands): Unpaid Principal Balance Deferred Fees Specific CECL Reserve 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 2,030,456 - - 2,030,456 Advances on existing loans 602,254 - - 602,254 Non-cash advances in lieu of interest 77,004 1,447 - 78,451 Origination fees, extension fees and exit fees - ( 41,537 ) - ( 41,537 ) Repayments of loans receivable ( 1,463,271 ) - - ( 1,463,271 ) Repayments of non-cash advances in lieu of interest ( 21,609 ) - - ( 21,609 ) Accretion of fees - 24,763 - 24,763 Sale proceeds ( 146,912 ) - - ( 146,912 ) Gain (loss) on sale 30,892 ( 191 ) - 30,701 Specific CECL reserve - - ( 65,494 ) ( 65,494 ) Principal charge-offs ( 11,527 ) - 11,527 - Balance at December 31, 2022 $ 7,538,525 $ ( 49,451 ) $ ( 60,300 ) $ 7,428,774 General CECL reserve $ ( 68,347 ) Carrying Value $ 7,360,427 (1) Balance at December 31, 2021 does not include general CECL reserve. Unpaid Principal Balance Deferred Fees Specific CECL Allowance Carrying Value (1) Balance at December 31, 2020 $ 6,152,331 $ ( 20,506 ) $ ( 6,000 ) $ 6,125,825 Initial funding of new loan originations and acquisitions 2,331,328 - - 2,331,328 Advances on existing loans 623,198 - - 623,198 Non-cash advances in lieu of interest 68,859 432 - 69,291 Origination fees, extension fees and exit fees - ( 39,096 ) - ( 39,096 ) Repayments of loans receivable ( 2,453,804 ) - - ( 2,453,804 ) Repayments of non-cash advances in lieu of interest ( 126,865 ) - - ( 126,865 ) Accretion of fees - 25,237 - 25,237 Sale proceeds ( 48,006 ) - - ( 48,006 ) Gain (loss) on sale ( 141 ) - - ( 141 ) Specific CECL Allowance - - ( 2,094 ) ( 2,094 ) Transfer to real estate owned, net ( 103,901 ) - - ( 103,901 ) Principal charge-offs ( 1,761 ) - 1,761 - Balance at December 31, 2021 $ 6,441,238 $ ( 33,933 ) $ ( 6,333 ) $ 6,400,972 General CECL Allowance $ ( 60,677 ) Carrying Value $ 6,340,295 Our loan participations sold as of December 31, 2022 are summarized as follows ($ in thousands): Contractual Maximum Borrowings Outstanding Carrying Carrying (1) 8/1/2023 8/1/2023 $ 138,322 $ 138,322 $ 281,123 10/18/2023 10/18/2024 105,930 105,645 192,355 12/31/2024 12/31/2025 20,000 19,831 157,833 Total $ 264,252 $ 263,798 $ 631,311 (1) Includes cash reserve balances. Our loan participations sold as of December 31, 2021 are summarized as follows ($ in thousands): Contractual Maximum Borrowings 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 December 31, 2022 are summarized as follows ($ in thousands): Contractual Maximum Borrowing Outstanding Carrying Carrying 12/31/2024 12/31/2025 $ 103,592 $ 102,467 $ 157,833 2/2/2026 2/2/2027 28,288 27,292 34,199 6/30/2025 6/30/2026 4,777 4,354 16,290 9/2/2026 9/2/2027 - ( 1,234 ) ( 1,763 ) 11/22/2024 11/24/2026 16,055 15,497 25,403 10/13/2025 10/13/2026 1,917 1,145 5,749 Total $ 154,629 $ 149,521 $ 237,711 Our notes payable as of December 31, 2021 are summarized as follows ($ in thousands): Contractual (2) Maximum Borrowings Outstanding Carrying Carrying (1) 1/4/2022 1/4/2022 $ 48,000 $ 48,000 $ 116,512 (1) Includes all cash reserve balances held by the 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. |
Summary of Secured Term Loan | The secured term loan as of December 31, 2022 is summarized as follows ($ in thousands): Contractual Maturity Date Stated Rate (1) Interest Rate Borrowing Outstanding Carrying Value 8/9/2026 S + 4.50% 8.96 % $ 755,090 $ 736,853 (1) One-month term SOFR at December 31, 2022 was 4.36 % . The secured term loan as of December 31, 2021 is summarized as follows ($ in thousands): Contractual Maturity Date Stated Rate (1) Interest Rate Borrowings 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 December 31, 2022 is summarized as follows ($ in thousands): Contractual Maturity Date Stated Rate (1) Net Interest Rate (1) Borrowings Outstanding Carrying Value 2/9/24 L + 2.78 % 5.78 % $ 290,000 $ 289,389 (1) One-month LIBOR at December 31, 2022 was 4.39 % , which exceeds 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 Maturity Date Stated Rate (1) Interest Rate Borrowings Outstanding Carrying Value 2/9/24 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 years ended December 31, 2022, 2021 and 2020 ($ in thousands): Year Ended December 31, December 31, December 31, Interest expense on secured financings $ 178,036 $ 113,300 $ 132,389 Interest expense on secured term loan 48,756 46,038 20,205 Interest expense on debt related to real estate owned (1) 14,170 15,643 - Amortization of financing costs 20,145 21,251 19,638 Total interest and related expense $ 261,107 $ 196,232 $ 172,232 (1) Interest on debt related to real estate owned includes $ 309,000 and $ 56,000 of amortization of financing costs for the years ended December 31, 2022 and 2021 , respectively. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 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): December 31, 2022 Fair Value Hierarchy Level Carrying Unpaid Principal Balance Fair Value Level 1 Level 2 Level 3 Loans receivable held-for- $ 7,360,427 $ 7,538,525 $ 7,331,207 $ — $ — $ 7,331,207 Repurchase agreements 3,966,859 3,966,859 3,966,859 — — 3,966,859 Term Participation Facility 257,531 257,531 255,296 — — 255,296 Loan participations sold, net 263,798 264,252 261,417 — — 261,417 Notes payable, net 149,521 154,629 153,282 — — 153,282 Secured term loan, net 736,853 755,090 743,764 — — 743,764 Debt related to real estate owned, 289,389 290,000 281,568 — — 281,568 December 31, 2021 Fair Value Hierarchy Level Carrying Unpaid Principal Balance Fair Value Level 1 Level 2 Level 3 Loans receivable held-for- $ 6,340,295 $ 6,441,238 $ 6,434,157 $ — $ — $ 6,434,157 Interests in loans receivable 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, 289,806 290,000 281,723 — — 281,723 |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Schedule of Common Stock Issued and Outstanding | The following table provides a summary of the number of common stock outstanding during the years ended December 31, 2022, 2021, and 2020, including redeemable stock: Year Ended Common Stock Outstanding December 31, December 31, December 31, (1) Beginning balance 139,840,088 132,848,720 129,348,720 Issuance of common stock - 5,524,934 3,500,000 Conversion of fully vested RSUs to common stock - 1,682,060 - Repurchase of common stock ( 1,463,944 ) ( 215,626 ) - Ending balance 138,376,144 139,840,088 132,848,720 (1) Amount at December 31, 2020 includes fully vested RSUs, which includes 877,498 of common stock underlying the vested RSUs. |
Summary of Dividends Declared For Common, Redeemable common, Vested Restricted Stock Units 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 December 31, 2022 Amount Per Amount Per Amount Per Amount Per Dividends declared - common $ 51,672 $ 0.37 $ 51,659 $ 0.37 $ 51,420 $ 0.37 $ 51,202 $ 0.37 Record Date - common stock March 31, 2022 June 30, 2022 September 30, 2022 December 30, 2022 Payment Date - common stock April 15, 2022 July 15, 2022 October 14, 2022 January 13, 2023 For the Quarter Ended March 31, 2021 June 30, 2021 September 30, 2021 December 31, 2021 Amount Per Amount Per Amount Per Amount Per Dividends declared - common $ 50,000 $ 0.37 $ 50,000 $ 0.37 $ 50,000 $ 0.37 $ 51,741 $ 0.37 Dividends declared - preferred (1) $ 4 $ 0.03 $ 4 $ 0.03 $ 4 $ 0.03 $ 4 $ 0.03 Record Date - common stock March 19, 2021 June 16, 2021 September 17, 2021 December 31, 2021 Payment Date - common stock April 1, 2021 July 7, 2021 October 7, 2021 January 15, 2022 (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. For the Quarter Ended March 31, 2020 June 30, 2020 September 30, 2020 December 31, 2020 Amount Per Amount Per Amount Per Amount Per Dividends declared - common $ 56,000 $ 0.43 $ 59,000 $ 0.44 $ 50,000 $ 0.37 $ 50,000 $ 0.37 Dividends declared - preferred $ 8 $ 0.03 $ 8 $ 0.03 $ 8 $ 0.03 $ 8 $ 0.03 Record Date - common stock March 4, 2020 June 18, 2020 September 29, 2020 December 22, 2020 Payment Date - common stock April 2, 2020 July 1, 2020 October 1, 2020 January 4, 2021 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Earning per Share | As of December 31, 2022, 2021 and 2020 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): Year Ended December 31, December 31, December 31, Net income attributable to common stockholders $ 112,064 $ 170,537 $ 202,378 Dividends on participating securities ( 2,397 ) - - Participating securities' share in earnings - - - Basic earnings $ 109,667 $ 170,537 $ 202,378 Weighted average shares of common stock (1) 139,306,311 134,539,645 132,980,316 Net income per share of common stock, basic $ 0.79 $ 1.27 $ 1.52 (1) Amounts at December 31, 2020 include fully vested RSUs, which includes 877,498 common stock underlying vested RSUs. Amounts at December 31, 2022 include fully vested RSUs, which include 6,850 common stock underlying vested RSUs. |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
Summary of Management and Incentive Fees | The following table summarizes our management fees ($ in thousands): Year Ended December 31, December 31, December 31, Management fees $ 39,461 $ 39,135 $ 38,960 Incentive fees — — 7,766 Total $ 39,461 $ 39,135 $ 46,726 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 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 years ended December 31, 2022 and 2021: Time-based Restricted Performance-based Restricted Number of Restricted Weighted- Number of Restricted Weighted- Unvested, December 31, 2021 — $ — — $ — Granted 2,159,280 $ 18.74 — — Unvested, December 31, 2022 2,159,280 $ 18.74 — $ — Time-based Restricted Performance-based Restricted Number of Restricted Weighted- Number of Restricted Weighted- Unvested, December 31, 2020 — $ — 1,622,499 $ 20.00 Forfeited/cancelled — — ( 525,206 ) — Vested — — ( 1,097,293 ) $ ( 20.00 ) Unvested, December 31, 2021 — $ — — $ — |
Commitments and Contingencies (
Commitments and Contingencies (Table) | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Contractual Maturity Payment | Our contractual payments due under all borrowings were as follows as of December 31, 2022 ($ in thousands): Year Amount (1) 2023 (2) 386,660 2024 853,634 2025 1,500,210 2026 1,870,234 2027 1,077,623 Total $ 5,688,361 (1) Contractual paydowns under all borrowings are based on the earlier of (i) the fully extended maturity date of each agreement, or (ii) the fully extended maturity of our underlying loans. (2) Assumes two loans with aggregate borrowings outstanding of $ 75.2 million that are in maturity default, with fully extended maturities before December 31, 2022, have an extended maturity date in 2023. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Details) | 12 Months Ended | ||
Dec. 31, 2022 USD ($) Segment | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||
Cash, FDIC Insured Amount | $ 250,000 | ||
Non-controlling interests | $ 37,636,000 | ||
Impairment of real estate | 0 | ||
Impairment of equity method investment | $ | $ 0 | ||
Number of operating segments | Segment | 1 | ||
Number of reportable segments | Segment | 1 | ||
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 | ||
ASU 2019-12 | |||
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 | ||
Public Offering | |||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||
Offering costs incurred and charged to Additional Paid in Capital | $ 30,000 | 11,800,000 | $ 900,000 |
CMTG/TT | Parent | |||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||
Stockholders equity of minority interest entity | 76,800,000 | ||
CMTG/TT | Noncontrolling Interest [Member] | |||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||
Ownership percentage by noncontrolling owners | 49% | ||
Non-controlling interests | $ 37,600,000 | ||
Minimum [Member] | |||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||
Real estate owned, depreciation estimated useful lives | 5 years | ||
Maximum [Member] | |||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||
Real estate owned, depreciation estimated useful lives | 40 years |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Schedule of Impact of Adoption (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Assets | ||
Loans receivable held-for-investment | $ 7,489,074 | $ 6,407,305 |
Liabilities | ||
Total impact of ASU 2016-13 adoption on retained earnings | $ (257,245) | $ (160,959) |
Loans Portfolio - Schedule of L
Loans Portfolio - Schedule of Loans and Financing Receivable (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 USD ($) Loan | Dec. 31, 2021 USD ($) Loan | |||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Loan Commitment | $ 9,433,951 | [1] | $ 7,488,611 | [2] |
Unpaid Principal Balance | 7,538,525 | 6,441,238 | ||
Loans receivable held-for-investment | $ 7,428,774 | [3] | $ 6,400,972 | [4] |
Number of Loans | Loan | 77 | 59 | ||
Weighted Average Spread | 0% | |||
Weighted Average Interest Rate | 8.12% | [5] | 5.40% | [6] |
General CECL reserve | $ 68,347 | [3] | $ 60,677 | [4] |
Loans receivable held-for-investment, net | 7,360,427 | [3] | 6,340,295 | [4] |
Variable Senior Loans | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Loan Commitment | 9,221,549 | [1],[7] | 7,163,032 | [2],[8],[9] |
Unpaid Principal Balance | 7,327,462 | [10] | 6,119,619 | [8],[9] |
Loans receivable held-for-investment | $ 7,217,564 | [3],[10] | $ 6,085,351 | [4],[8],[9] |
Weighted Average Interest Rate | 8.05% | [5],[10] | 5.16% | [6],[8],[9] |
Variable Senior Loans | London Interbank Offered Rate (LIBOR) | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Number of Loans | Loan | 71 | [10] | 51 | [8],[9] |
Weighted Average Spread | + 3.92% | [10],[11] | + 4.06% | [8],[9],[12] |
Variable Subordinate Loans | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Loan Commitment | $ 63,102 | [1] | $ 137,079 | [2] |
Unpaid Principal Balance | 61,763 | 133,119 | ||
Loans receivable held-for-investment | $ 61,947 | [3],[11] | $ 133,552 | [4] |
Weighted Average Interest Rate | 15.95% | [5] | 11.37% | [6] |
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 | + 11.55% | [11] | + 10.38% | [12] |
Variable Loan | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Loan Commitment | $ 9,284,651 | [1] | $ 7,300,111 | [2] |
Unpaid Principal Balance | 7,389,225 | 6,252,738 | ||
Loans receivable held-for-investment | $ 7,279,511 | [3],[11] | $ 6,218,903 | [4] |
Weighted Average Interest Rate | 8.11% | [5] | 5.29% | [6] |
Variable Loan | London Interbank Offered Rate (LIBOR) | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Number of Loans | Loan | 73 | 54 | ||
Weighted Average Spread | + 3.98% | [11] | + 4.19% | [12] |
Fixed Senior Loans | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Loan Commitment | $ 23,373 | [1] | $ 62,573 | [2],[9] |
Unpaid Principal Balance | 23,373 | [10] | 62,573 | [9] |
Loans receivable held-for-investment | $ 23,595 | [3],[10] | $ 56,449 | [4],[9] |
Number of Loans | Loan | 2 | [10] | 3 | [9] |
Weighted Average Interest Rate | 8.50% | [5],[10] | 10.09% | [6],[9] |
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 | $ 125,668 | [3] | $ 125,620 | [4] |
Number of Loans | Loan | 2 | 2 | ||
Weighted Average Interest Rate | 8.49% | [5] | 8.49% | [6] |
Fixed Loan | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Loan Commitment | $ 149,300 | [1] | $ 188,500 | [2] |
Unpaid Principal Balance | 149,300 | 188,500 | ||
Loans receivable held-for-investment | $ 149,263 | [3] | $ 182,069 | [4] |
Number of Loans | Loan | 4 | 5 | ||
Weighted Average Interest Rate | 8.49% | [5] | 9.02% | [6] |
[1] Loan commitment represents principal outstanding plus remaining unfunded loan commitments. Loan commitment represents principal outstanding plus unfunded loan commitments. Net of specific CECL reserve of $ 60.3 million. Net of specific CECL reserve of $ 6.3 million. 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 unpaid principal balance as of December 31, 2022 and includes loans on non-accrual status. For loans placed on non-accrual, the interest rate used in calculating the weighted average spread is 0% . 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 unpaid principal balance as of December 31, 2021 and includes loans on non-accrual status Senior loans include senior mortgages and similar credit quality loans, including related contiguous subordinate loans and pari passu participations in senior mortgage loans. Includes a fixed rate loan with an unpaid 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 unpaid 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. 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 is expressed as a spread over the relevant floating benchmark rates. One-month LIBOR and SOFR as of December 31, 2022 were 4.39 % and 4.36 % , respectively. Weighted average is based on unpaid principal balance as of December 31, 2022 . For loans placed on non-accrual, the spread used in calculating the weighted average spread is 0% . 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 unpaid principal balance as of December 31, 2021 and includes loans on non-accrual status. |
Loans Portfolio - Schedule of_2
Loans Portfolio - Schedule of Loans and Financing Receivable (Details) (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | |||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Specific CECL Reserve | $ (60,300) | [1] | $ (6,333) | [2] |
Weighted Average Spread | 0% | |||
Weighted Average Interest Rate | 8.12% | [3] | 5.40% | [4] |
Fixed Rate Loan | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Unpaid principal balance of contiguous loans | $ 33,500 | |||
Loan Commitment Amount | 39,700 | |||
Floating Rate Loan | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Unpaid principal balance of contiguous loans | 103,100 | |||
Loan Commitment Amount | $ 104,400 | |||
London Interbank Offered Rate (LIBOR) | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
One month LIBOR rate and SOFR | 4.39% | 0.10% | ||
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
One month LIBOR rate and SOFR | 4.36% | |||
[1] Loans classified as non-accrual represented 4.8 % of the total loan portfolio at December 31, 2022 , based on carrying value. Excludes three loans with an aggregate carrying value of $ 360.0 million that are in maturity default. Loans classified as non-accrual represented 5.6 % of the total loan portfolio at December 31, 2021, based on carrying value. 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 unpaid principal balance as of December 31, 2022 and includes loans on non-accrual status. For loans placed on non-accrual, the interest rate used in calculating the weighted average spread is 0% . 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 unpaid principal balance as of December 31, 2021 and includes loans on non-accrual status |
Loans Portfolio - Additional In
Loans Portfolio - Additional Information (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2022 USD ($) | Sep. 30, 2022 USD ($) | Jun. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2022 USD ($) Loan | Dec. 31, 2021 USD ($) Loan | Jun. 08, 2016 | ||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||||||||
Unpaid principal balance | $ 15,000 | $ 15,000 | ||||||||||
Interest recognized | $ 1,100 | 400 | ||||||||||
Total portfolio loans carrying value | $ 7,489,074 | 6,407,305 | 7,489,074 | 6,407,305 | ||||||||
Gain (Loss) on Senior Loan | 495 | |||||||||||
Principal repayment received | 81,700 | |||||||||||
Chargeoff | 27,000 | 1,800 | 11,500 | |||||||||
Increase in specific CECL reserve | 65,500 | |||||||||||
Specific CECL Reserve | (60,300) | [1] | (6,333) | [2] | ||||||||
Specific CECL Reserve | 6,000 | 6,000 | ||||||||||
Carrying value | 9,000 | $ 9,000 | ||||||||||
Carrying value after charge off | 3,500 | 3,500 | ||||||||||
Net provision for current expected credit losses | $ 84,400 | |||||||||||
Number of Loans | Loan | 77 | 59 | ||||||||||
Number of CECL loans | Loan | 3 | |||||||||||
Total allowance for loan losses | 128,647 | 67,010 | $ 128,647 | $ 67,010 | ||||||||
Amortized Cost Basis | [3] | 7,428,774 | 7,428,774 | |||||||||
Loan Commitment | $ 9,433,951 | [4] | 7,488,611 | [5] | $ 9,433,951 | [4] | 7,488,611 | [5] | ||||
Discount Rate | ||||||||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||||||||
Measurement Input | 0.060 | 0.060 | ||||||||||
C M T G T T Mortgage R E I T L L C [Member] | ||||||||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||||||||
Equity interest ownership percentage | 51% | 51% | 51% | |||||||||
Loans receivable recorded subordinate loans held | $ 78,500 | $ 78,500 | ||||||||||
Loans Receivable, Acquired | $ 73,500 | |||||||||||
Loan Commitment | 115,300 | 115,300 | ||||||||||
Loan Commitments Funded | $ 78,500 | |||||||||||
Loans Receivable, Recorded Subordinate Loans Held | $ 78,500 | $ 78,500 | ||||||||||
Maximum [Member] | Market Capitalization Rates | ||||||||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||||||||
Measurement Input | 0.060 | 0.060 | ||||||||||
Minimum [Member] | Market Capitalization Rates | ||||||||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||||||||
Measurement Input | 0.045 | 0.045 | ||||||||||
COVID 19 [Member] | ||||||||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||||||||
Total allowance for loan losses | $ 146,400 | $ 146,400 | ||||||||||
Senior Loans | ||||||||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||||||||
Total portfolio loans carrying value | $ 116,200 | |||||||||||
Gain (Loss) on Senior Loan | $ 30,100 | |||||||||||
Specific CECL Reserve | 300 | |||||||||||
Percentage of loans receivable held-for-investment, net | 1.20% | 1.20% | ||||||||||
Amortized Cost Basis | $ 87,800 | $ 87,800 | ||||||||||
Senior Loans | Mixed-Use | New York [Member] | ||||||||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||||||||
Unpaid principal balance | 208,800 | 208,800 | ||||||||||
Specific CECL Reserve | 42,000 | |||||||||||
Carrying value | 208,800 | 207,500 | 208,800 | 207,500 | ||||||||
Senior Loans | Multifamily | San Francisco, CA | ||||||||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||||||||
Unpaid principal balance | 138,800 | 138,800 | ||||||||||
Specific CECL Reserve | 18,300 | |||||||||||
Carrying value | $ 138,300 | 134,600 | $ 138,300 | 134,600 | ||||||||
Senior Loans | Maximum [Member] | ||||||||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||||||||
Derivative, Floor Interest Rate | 1.57% | |||||||||||
Senior Loans | Minimum [Member] | ||||||||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||||||||
Derivative, Floor Interest Rate | 1% | |||||||||||
Senior Loans | Held-to-maturity Securities | ||||||||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||||||||
Loan Commitment | 200,727 | $ 200,727 | ||||||||||
Entity Loan Modification Program | Senior Loans | ||||||||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||||||||
Outstanding principal balance for senior loan | $ 95,000 | |||||||||||
Loans Receivable Portfolio [Member] | ||||||||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||||||||
Loans Receivable Percentage | 8.60% | 5.60% | 8.60% | 5.60% | ||||||||
[1] Loans classified as non-accrual represented 4.8 % of the total loan portfolio at December 31, 2022 , based on carrying value. Excludes three loans with an aggregate carrying value of $ 360.0 million that are in maturity default. Loans classified as non-accrual represented 5.6 % of the total loan portfolio at December 31, 2021, based on carrying value. Net of specific CECL reserves of $ 60.3 million. Loan commitment represents principal outstanding plus remaining unfunded loan commitments. Loan commitment represents principal outstanding plus unfunded loan commitments. |
Loans Portfolio - Schedule of_3
Loans Portfolio - Schedule of Loan Receivable Portfolio (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||||||
Loans Receivable Roll Forward [Line Items] | ||||||||||
Repayments of non-cash advances in lieu of interest | $ 21,609 | $ 126,865 | $ 15,784 | |||||||
Accretion of fees | 24,763 | 25,237 | 27,859 | |||||||
Transfer to real estate owned, net | [1] | (103,901) | ||||||||
Principal charge-offs | $ 27,000 | $ 1,800 | 11,500 | |||||||
Loans receivable held-for-investment | 7,489,074 | 6,407,305 | 7,489,074 | 6,407,305 | ||||||
Unpaid Principal Balance [Member] | ||||||||||
Loans Receivable Roll Forward [Line Items] | ||||||||||
Balance | 6,441,238 | 6,152,331 | ||||||||
Initial funding of new loan originations and acquisitions | 2,030,456 | 2,331,328 | ||||||||
Advances on existing loans | 602,254 | 623,198 | ||||||||
Non-cash advances in lieu of interest | 77,004 | 68,859 | ||||||||
Repayments of loans receivable | (1,463,271) | (2,453,804) | ||||||||
Repayments of non-cash advances in lieu of interest | (21,609) | 126,865 | ||||||||
Sale proceeds | (146,912) | 48,006 | ||||||||
Gain (loss) on sale | 30,892 | (141) | ||||||||
Transfer to real estate owned, net | (103,901) | |||||||||
Principal charge-offs | (11,527) | (1,761) | ||||||||
Balance | 7,538,525 | 6,441,238 | 7,538,525 | 6,441,238 | 6,152,331 | |||||
Deferred Fees [Member] | ||||||||||
Loans Receivable Roll Forward [Line Items] | ||||||||||
Balance | (33,933) | (20,506) | ||||||||
Non-cash advances in lieu of interest | 1,447 | 432 | ||||||||
Origination fees, extension fees and exit fees | (41,537) | (39,096) | ||||||||
Accretion of fees | 24,763 | 25,237 | ||||||||
Gain (loss) on sale | (191) | |||||||||
Balance | (49,451) | (33,933) | (49,451) | (33,933) | (20,506) | |||||
Specific CECL Allowance [Member] | ||||||||||
Loans Receivable Roll Forward [Line Items] | ||||||||||
Balance | (6,333) | (6,000) | ||||||||
Specific CECL reserve | (65,494) | |||||||||
Specific CECL Allowance | (2,094) | |||||||||
Principal charge-offs | 11,527 | 1,761 | ||||||||
Balance | (60,300) | (6,333) | (60,300) | (6,333) | (6,000) | |||||
Carrying Value [Member] | ||||||||||
Loans Receivable Roll Forward [Line Items] | ||||||||||
Balance | 6,400,972 | [2] | 6,125,825 | |||||||
Initial funding of new loan originations and acquisitions | 2,030,456 | [2] | 2,331,328 | |||||||
Advances on existing loans | 602,254 | [2] | 623,198 | |||||||
Non-cash advances in lieu of interest | 78,451 | [2] | 69,291 | |||||||
Origination fees, extension fees and exit fees | (41,537) | [2] | 39,096 | |||||||
Repayments of loans receivable | (1,463,271) | [2] | (2,453,804) | |||||||
Repayments of non-cash advances in lieu of interest | (21,609) | [2] | 126,865 | |||||||
Accretion of fees | 24,763 | [2] | 25,237 | |||||||
Sale proceeds | (146,912) | [2] | 48,006 | |||||||
Gain (loss) on sale | 30,701 | [2] | (141) | |||||||
Specific CECL reserve | [2] | (65,494) | ||||||||
Specific CECL Allowance | (2,094) | |||||||||
Transfer to real estate owned, net | (103,901) | |||||||||
Balance | 7,428,774 | [2] | 6,400,972 | [2] | 7,428,774 | [2] | 6,400,972 | [2] | $ 6,125,825 | |
General CECL Allowance | (68,347) | [2] | (60,677) | |||||||
Loans receivable held-for-investment | $ 7,360,427 | [2] | $ 6,340,295 | $ 7,360,427 | [2] | $ 6,340,295 | ||||
[1] Includes Mortgage and Mezzanine loans Balance at December 31, 2021 does not include general CECL reserve. |
Loans Portfolio - Schedule of_4
Loans Portfolio - Schedule of Loans Receivable and Interests Portfolio By Loan Type (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | |||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total portfolio loans carrying value | $ 7,489,074 | $ 6,407,305 | ||||
General CECL reserve | (68,347) | [1] | (60,691) | [2] | ||
Loans receivable held-for-investment, net | 7,360,427 | [3] | 6,340,295 | [4] | ||
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] | ||||||
General CECL reserve | (68,347) | [5] | (60,691) | [6] | ||
Loans receivable held-for-investment, net | 7,360,427 | [5] | 6,502,145 | [6] | ||
Concentration of Risk | Loan Type | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total portfolio loans carrying value | $ 7,428,774 | [5] | $ 6,562,836 | [6] | ||
Percentage of total portfolio loans | 100% | 100% | ||||
Concentration of Risk | Property Type | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total portfolio loans carrying value | $ 7,428,774 | [5] | $ 6,562,836 | [6] | ||
Percentage of total portfolio loans | 100% | 100% | ||||
Concentration of Risk | Property Type | Multifamily | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total portfolio loans carrying value | $ 3,044,892 | [5] | $ 1,986,628 | [6] | ||
Percentage of total portfolio loans | 41% | 30% | ||||
Concentration of Risk | Property Type | Hospitality | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total portfolio loans carrying value | $ 1,551,946 | [5] | $ 1,176,842 | [6] | ||
Percentage of total portfolio loans | 20% | 18% | ||||
Concentration of Risk | Property Type | Office | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total portfolio loans carrying value | $ 1,086,018 | [5] | $ 1,113,805 | [6] | ||
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 | [7] | $ 615,599 | [5] | $ 734,613 | [6] | |
Percentage of total portfolio loans | [7] | 8% | 11% | |||
Concentration of Risk | Property Type | For Sale Condo | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total portfolio loans carrying value | $ 434,210 | [5] | $ 710,660 | [6] | ||
Percentage of total portfolio loans | 6% | 11% | ||||
Concentration of Risk | Property Type | Land | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total portfolio loans carrying value | $ 426,645 | [5] | $ 631,713 | [6] | ||
Percentage of total portfolio loans | 6% | 10% | ||||
Concentration of Risk | Property Type | Other | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total portfolio loans carrying value | $ 269,464 | [5] | $ 208,575 | |||
Percentage of total portfolio loans | 4% | 3% | ||||
Concentration of Risk | Geographic Location | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total portfolio loans carrying value | $ 7,428,774 | [5] | $ 6,562,836 | [6] | ||
Percentage of total portfolio loans | 100% | 100% | ||||
Concentration of Risk | Geographic Location | West | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total portfolio loans carrying value | $ 2,450,710 | [5] | $ 1,156,896 | [6] | ||
Percentage of total portfolio loans | 33% | 17% | ||||
Concentration of Risk | Geographic Location | Northeast | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total portfolio loans carrying value | $ 1,999,648 | [5] | $ 2,734,550 | [6] | ||
Percentage of total portfolio loans | 27% | 42% | ||||
Concentration of Risk | Geographic Location | Southeast | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total portfolio loans carrying value | $ 1,008,590 | [5] | $ 836,904 | [6] | ||
Percentage of total portfolio loans | 14% | 13% | ||||
Concentration of Risk | Geographic Location | Mid Atlantic | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total portfolio loans carrying value | $ 809,908 | [5] | $ 1,235,527 | [6] | ||
Percentage of total portfolio loans | 11% | 19% | ||||
Concentration of Risk | Geographic Location | Southwest | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total portfolio loans carrying value | $ 694,887 | [5] | $ 269,461 | [6] | ||
Percentage of total portfolio loans | 9% | 4% | ||||
Concentration of Risk | Geographic Location | Midwest | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total portfolio loans carrying value | $ 461,531 | [5] | $ 309,298 | [6] | ||
Percentage of total portfolio loans | 6% | 5% | ||||
Concentration of Risk | Geographic Location | Other | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total portfolio loans carrying value | $ 3,500 | [5] | $ 20,200 | [6] | ||
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 | [8] | $ 7,241,159 | [5] | $ 6,303,664 | [6] | |
Percentage of total portfolio loans | [8] | 97% | 96% | |||
Concentration of Risk | Subordinate loans | Loan Type | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total portfolio loans carrying value | $ 187,615 | [5] | $ 259,172 | [6] | ||
Percentage of total portfolio loans | 3% | 4% | ||||
[1] Net of specific CECL reserve of $ 60.3 million. Net of specific CECL reserve of $ 6.3 million. Net of specific CECL reserve of $ 60.3 million. Net of specific CECL reserve of $ 6.3 million. Net of specific CECL reserve of $ 60.3 million. Net of specific CECL reserve of $ 6.3 million. Mixed-use comprises of 4 % 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_5
Loans Portfolio - Schedule of Loans Receivable and Interests Portfolio By Loan Type (Details) (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | |||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Specific CECL Reserve | $ (60,300) | [1] | $ (6,333) | [2] |
Concentration of Risk | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Specific CECL Reserve | $ 60,300 | $ (6,300) | ||
Concentration of Risk | Property Type | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Percentage of total portfolio loans | 100% | 100% | ||
Concentration of Risk | Property Type | Mixed-Use, Office | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Percentage of total portfolio loans | 4% | |||
Concentration of Risk | Property Type | Mixed-Use, Retail | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Percentage of total portfolio loans | 2% | |||
Concentration of Risk | Property Type | Mixed-Use, For Sale Condo | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Percentage of total portfolio loans | 1% | |||
Concentration of Risk | Property Type | Mixed-Use, Multifamily | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Percentage of total portfolio loans | 1% | |||
[1] Loans classified as non-accrual represented 4.8 % of the total loan portfolio at December 31, 2022 , based on carrying value. Excludes three loans with an aggregate carrying value of $ 360.0 million that are in maturity default. Loans classified as non-accrual represented 5.6 % of the total loan portfolio at December 31, 2021, based on carrying value. |
Loans Portfolio - Summary of In
Loans Portfolio - Summary of Interest and Accretion Income from Loans Receivable (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Receivables [Abstract] | ||||
Coupon interest | $ 441,320 | $ 386,731 | $ 413,228 | |
Interest on cash, cash equivalents, and other income | 4,381 | 2,045 | 4,402 | |
Accretion of fees | 24,967 | 26,487 | 28,310 | |
Total interest and related income | [1] | $ 470,668 | $ 415,263 | $ 445,940 |
[1] We recognized $ 5.1 million, $ 7.3 million, and $ 5.9 million in pre-payment penalties and accelerated fees during the years ended December 31, 2022, 2021, and 2020 respectively. |
Loans Portfolio - Summary of _2
Loans Portfolio - Summary of Interest and Accretion Income from Loans Receivable (Parenthetical) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Receivables [Abstract] | |||
Pre-payment penalties and accelerated fees | $ 5.1 | $ 7.3 | $ 5.9 |
Loans Portfolio - Loan Modifica
Loans Portfolio - Loan Modifications (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Jan. 14, 2022 | Dec. 31, 2021 |
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Outstanding principal balance | $ 1,500,000 | ||
Carrying value | $ 263,798 | $ 167,744 |
Loans Portfolio - Schedule of C
Loans Portfolio - Schedule of Carrying Value of The Loans Receivable And Interests In Loans Receivable (Details) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2022 USD ($) Loan | Dec. 31, 2021 USD ($) Loan | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | |||||
Number of Loans | Loan | 77 | 60 | |||
Principal Balance | $ 7,538,525 | $ 6,602,804 | |||
Carrying Value | $ 7,360,427 | [1],[2],[3] | $ 6,502,145 | [4] | |
% of Total of Carrying Value | 100% | 100% | |||
Carrying value gross | $ 7,428,774 | [1],[2],[3] | $ 6,562,836 | [4] | |
General CECL reserve | $ (68,347) | [1] | $ (60,691) | [4] | |
Risk Rating One | |||||
Financing Receivable Allowance For Credit Losses [Line Items] | |||||
Number of Loans | Loan | 1 | ||||
Principal Balance | $ 35,721 | ||||
Carrying Value | [4] | $ 35,699 | |||
% of Total of Carrying Value | 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 | $ 913 | [1] | $ 703,714 | [4] | |
% of Total of Carrying Value | 0% | 10% | |||
Risk Rating Three | |||||
Financing Receivable Allowance For Credit Losses [Line Items] | |||||
Number of Loans | Loan | 63 | 42 | |||
Principal Balance | $ 6,181,207 | $ 4,678,785 | |||
Carrying Value | $ 6,136,300 | [1] | $ 4,649,076 | [4] | |
% of Total of Carrying Value | 83% | 71% | |||
Risk Rating Four | |||||
Financing Receivable Allowance For Credit Losses [Line Items] | |||||
Number of Loans | Loan | 10 | 9 | |||
Principal Balance | $ 1,005,345 | $ 1,155,879 | |||
Carrying Value | $ 1,001,235 | [1] | $ 1,154,147 | [4] | |
% of Total of Carrying Value | 13% | 18% | |||
Risk Rating Five | |||||
Financing Receivable Allowance For Credit Losses [Line Items] | |||||
Number of Loans | Loan | 3 | 2 | |||
Principal Balance | $ 351,046 | $ 26,533 | |||
Carrying Value | $ 290,326 | [1] | $ 20,200 | [4] | |
% of Total of Carrying Value | 4% | 0% | |||
[1] Net of specific CECL reserve of $ 60.3 million. Includes specific CECL reserve of $ 60.3 million. The tax basis of the loans included above is $ 7,490,392 as of December 31, 2022 . Net of specific CECL reserve of $ 6.3 million. |
Loans Portfolio - Schedule of_6
Loans Portfolio - Schedule of Carrying Value of The Loans Receivable And Interests In Loans Receivable (Parenthetical) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | |||
Receivables [Abstract] | ||||
Specific CECL Reserve | $ (60,300) | [1] | $ (6,333) | [2] |
[1] Loans classified as non-accrual represented 4.8 % of the total loan portfolio at December 31, 2022 , based on carrying value. Excludes three loans with an aggregate carrying value of $ 360.0 million that are in maturity default. Loans classified as non-accrual represented 5.6 % of the total loan portfolio at December 31, 2021, based on carrying value. |
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 | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Unpaid Principal Balance | $ 418,046 | [1] | $ 366,512 | [2] | |
Carrying Value Before Specific CECL Reserve | 417,626 | [1] | 363,343 | [2] | |
Specific CECL Reserve | (60,300) | [1] | (6,333) | [2] | |
Carrying Value | 357,326 | [1] | 357,010 | [2] | |
Risk Rating Five | Multifamily | CA | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Unpaid Principal Balance | 138,749 | ||||
Carrying Value Before Specific CECL Reserve | 138,329 | ||||
Specific CECL Reserve | (18,293) | ||||
Carrying Value | $ 120,036 | ||||
Interest Recognition Method | Cost recovery | ||||
Interest Recognition as of Date | Dec. 01, 2022 | ||||
Risk Rating 5 | Mixed-Use | NY | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Unpaid Principal Balance | $ 208,797 | ||||
Carrying Value Before Specific CECL Reserve | 208,797 | ||||
Specific CECL Reserve | (42,007) | ||||
Carrying Value | $ 166,790 | ||||
Interest Recognition Method | Cash basis | ||||
Interest Recognition as of Date | [3] | Nov. 01, 2022 | |||
Risk Rating 5 | Other | Other | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Unpaid Principal Balance | $ 3,500 | ||||
Carrying Value Before Specific CECL Reserve | 3,500 | ||||
Carrying Value | $ 3,500 | ||||
Interest Recognition Method | Cost recovery | ||||
Interest Recognition as of Date | Jul. 01, 2020 | ||||
Risk Rating Four | Land | NY | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Unpaid Principal Balance | $ 67,000 | ||||
Carrying Value Before Specific CECL Reserve | 67,000 | ||||
Carrying Value | $ 67,000 | ||||
Interest Recognition Method | Cash basis | ||||
Interest Recognition as of Date | Nov. 01, 2021 | ||||
Loans Receivable Current Non-Accrual | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Unpaid Principal Balance | 92,913 | ||||
Carrying Value Before Specific CECL Reserve | 89,063 | ||||
Specific CECL Reserve | (333) | ||||
Carrying Value | 88,730 | ||||
Loans Receivable Current Non-Accrual | Risk Rating Four | Hospitality | CA | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Unpaid Principal Balance | 81,380 | ||||
Carrying Value Before Specific CECL Reserve | 77,530 | ||||
Carrying Value | $ 77,530 | ||||
Interest Recognition Method | Cash basis | ||||
Interest Recognition as of Date | [4] | Dec. 01, 2021 | |||
Delinquent Non Accrual | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Unpaid Principal Balance | $ 273,599 | ||||
Carrying Value Before Specific CECL Reserve | 274,280 | ||||
Specific CECL Reserve | (6,000) | ||||
Carrying Value | 268,280 | ||||
Delinquent Non Accrual | Risk Rating Five | Other | Other | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Unpaid Principal Balance | 11,533 | ||||
Carrying Value Before Specific CECL Reserve | 11,533 | ||||
Specific CECL Reserve | (333) | ||||
Carrying Value | $ 11,200 | ||||
Interest Recognition Method | Cost recovery | ||||
Interest Recognition as of Date | May 01, 2021 | ||||
Delinquent Non Accrual | Risk Rating 5 | Other | Other | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Unpaid Principal Balance | $ 15,000 | ||||
Carrying Value Before Specific CECL Reserve | 15,000 | ||||
Specific CECL Reserve | (6,000) | ||||
Carrying Value | $ 9,000 | ||||
Interest Recognition Method | Cost recovery | ||||
Interest Recognition as of Date | Jul. 01, 2020 | ||||
Delinquent Non Accrual | Risk Rating 4 | Land | NY | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Unpaid Principal Balance | $ 116,020 | ||||
Carrying Value Before Specific CECL Reserve | 116,211 | ||||
Carrying Value | $ 116,211 | ||||
Interest Recognition Method | Cash basis | ||||
Interest Recognition as of Date | May 01, 2020 | ||||
Delinquent Non Accrual | Risk Rating 4 | Land | NY | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Unpaid Principal Balance | $ 75,579 | ||||
Carrying Value Before Specific CECL Reserve | 76,069 | ||||
Carrying Value | $ 76,069 | ||||
Interest Recognition Method | Cash basis | ||||
Interest Recognition as of Date | Aug. 01, 2020 | ||||
Delinquent Non Accrual | Risk Rating 4 | Land | NY | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Unpaid Principal Balance | $ 67,000 | ||||
Carrying Value Before Specific CECL Reserve | 67,000 | ||||
Carrying Value | $ 67,000 | ||||
Interest Recognition Method | Cash basis | ||||
Interest Recognition as of Date | Nov. 01, 2021 | ||||
[1] Loans classified as non-accrual represented 4.8 % of the total loan portfolio at December 31, 2022 , based on carrying value. Excludes three loans with an aggregate carrying value of $ 360.0 million that are in maturity default. Loans classified as non-accrual represented 5.6 % of the total loan portfolio at December 31, 2021, based on carrying value. Interest income of $ 1.1 million was recognized on this loan while on non-accrual status during the year ended December 31, 2022 . Interest income of $ 0.4 million was recognized on this loan while on non-accrual status during the year ended December 31, 2021 . |
Loans Portfolio - Summary of _3
Loans Portfolio - Summary of Carrying Value and Significant Characteristics of Loans Receivable on Non-accrual Status (Parenthetical) (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 USD ($) Loan | Dec. 31, 2021 USD ($) | |
Receivables [Abstract] | ||
Interest recognized | $ 1.1 | $ 0.4 |
Financing receivable, percent past due | 4.80% | 5.60% |
Number of additional loans | Loan | 3 | |
Nonaccrual carrying value maturity default | $ 360 |
Loans Portfolio - Loan Risk Rat
Loans Portfolio - Loan Risk Ratings (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Weighted-average risk rating on loan exposure | 3.20% | 3.10% |
Loans receivable held-for-investment | $ 7,489,074 | $ 6,407,305 |
Loans Portfolio - Schedule of A
Loans Portfolio - Schedule of Activity In Allowance For Loan Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | ||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Total allowance for loan losses, Balance | $ 67,010 | ||
Total allowance for loan losses, Balance | 128,647 | $ 67,010 | |
Allowance, Loan Losses [Member] | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Total allowance for loan losses, Balance | 73,528 | 6,000 | |
Initial CECL allowance, January 1, 2021 | 78,251 | ||
Increase (reversal) in allowance | 84,361 | (8,962) | |
Principal charge-offs | (11,527) | (1,761) | |
Total allowance for loan losses, Balance | $ 146,362 | 73,528 | |
Reserve | 1.90% | ||
Allowance, Loan Losses [Member] | Specific CECL Allowance [Member] | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Total allowance for loan losses, Balance | [1] | $ 6,333 | 6,000 |
Increase (reversal) in allowance | [1] | 65,494 | 2,094 |
Principal charge-offs | [1] | (11,527) | (1,761) |
Total allowance for loan losses, Balance | [1] | $ 60,300 | 6,333 |
Reserve | [1] | 0.80% | |
Allowance, Loan Losses [Member] | Loans Receivable Held For Investment [Member] | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Total allowance for loan losses, Balance | $ 60,677 | ||
Initial CECL allowance, January 1, 2021 | 64,274 | ||
Increase (reversal) in allowance | 7,670 | (3,597) | |
Total allowance for loan losses, Balance | 68,347 | 60,677 | |
Allowance, Loan Losses [Member] | Interests In Loans Receivable Held For Investment [Member] | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Total allowance for loan losses, Balance | 14 | ||
Initial CECL allowance, January 1, 2021 | 406 | ||
Increase (reversal) in allowance | (14) | (392) | |
Total allowance for loan losses, Balance | 14 | ||
Allowance, Loan Losses [Member] | Accrued Interest Receivable [Member] | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Total allowance for loan losses, Balance | 218 | ||
Initial CECL allowance, January 1, 2021 | 357 | ||
Increase (reversal) in allowance | (218) | (139) | |
Total allowance for loan losses, Balance | 218 | ||
Allowance, Loan Losses [Member] | Unfunded Loan Commitments [Member] | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Total allowance for loan losses, Balance | [2] | 6,286 | |
Initial CECL allowance, January 1, 2021 | [2] | 13,214 | |
Increase (reversal) in allowance | [2] | 11,429 | (6,928) |
Total allowance for loan losses, Balance | [2] | 17,715 | 6,286 |
Allowance, Loan Losses [Member] | General CECL Reserve [Member] | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Total allowance for loan losses, Balance | 67,195 | ||
Initial CECL allowance, January 1, 2021 | 78,251 | ||
Increase (reversal) in allowance | 18,867 | (11,056) | |
Total allowance for loan losses, Balance | $ 86,062 | $ 67,195 | |
Reserve | 1.10% | ||
[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 reserve. The CECL reserve for unfunded commitments is included in other liabilities on the consolidated balance sheets. |
Loans Portfolio - Schedule of_7
Loans Portfolio - Schedule of Carrying Value of Loan Portfolio Based on Internal Risk Ratings (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 USD ($) Integer | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Number of Loans | Integer | 77 | |
Amortized Cost Basis | $ 7,428,774 | [1] |
Amortized Cost Basis, current period charge-offs | (11,527) | [1] |
Charge-offs, Year 4 | (11,500) | |
Charge-offs, Year 5 | (27) | |
Year 1 | 2,152,810 | |
Year 2 | 1,893,254 | |
Year 3 | 296,619 | |
Year 4 | 1,851,872 | |
Year 5 | 1,137,125 | |
Year 6 | $ 97,094 | |
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 | $ 913 | [1] |
Year 5 | $ 913 | |
Risk Rating Three | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Number of Loans | Integer | 63 | |
Amortized Cost Basis | $ 6,136,300 | [1] |
Year 1 | 2,074,609 | |
Year 2 | 1,727,767 | |
Year 3 | 96,781 | |
Year 4 | 1,498,612 | |
Year 5 | 641,437 | |
Year 6 | $ 97,094 | |
Risk Rating Four | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Number of Loans | Integer | 10 | |
Amortized Cost Basis | $ 1,001,235 | [1] |
Year 1 | 78,201 | |
Year 2 | 165,487 | |
Year 3 | 199,838 | |
Year 4 | 229,697 | |
Year 5 | $ 328,012 | |
Risk Rating Five | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Number of Loans | Integer | 3 | |
Amortized Cost Basis | $ 301,853 | [1] |
Year 4 | 135,063 | |
Year 5 | $ 166,790 | |
[1] Net of specific CECL reserves of $ 60.3 million. |
Loans Portfolio - Schedule of_8
Loans Portfolio - Schedule of Carrying Value of Loan Portfolio Based on Internal Risk Ratings (Details) (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Specific CECL Reserve | $ (60,300) | [1] | $ (6,333) | [2] |
[1] Loans classified as non-accrual represented 4.8 % of the total loan portfolio at December 31, 2022 , based on carrying value. Excludes three loans with an aggregate carrying value of $ 360.0 million that are in maturity default. Loans classified as non-accrual represented 5.6 % of the total loan portfolio at December 31, 2021, based on carrying value. |
Loans Portfolio - Schedule of I
Loans Portfolio - Schedule of Interests in Loans Receivable Held For Investment (Details) | 12 Months Ended | |||
Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) Loan | |||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Loan Commitment | $ 9,433,951,000 | [1] | $ 7,488,611,000 | [2] |
Weighted Average Interest Rate(4) | 8.12% | [3] | 5.40% | [4] |
Current expected credit loss reserve | $ (60,300,000) | |||
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 | $ 0 | $ 161,850,000 | ||
Held-to-maturity Securities | Senior Loans | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Number of Loans | Loan | 1 | |||
Loan Commitment | $ 200,727,000 | |||
Principal Outstanding | 161,566,000 | |||
Carrying Value | $ 161,864,000 | |||
Stated Rate | L + 4.25% | |||
Interest Rate | 5.50% | |||
[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 unpaid principal balance as of December 31, 2022 and includes loans on non-accrual status. For loans placed on non-accrual, the interest rate used in calculating the weighted average spread is 0% . 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 unpaid principal balance as of December 31, 2021 and includes loans on non-accrual status |
Loans Portfolio - Schedule of_9
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 o_10
Loans Portfolio - Schedule of Interests in Loans Receivable Portfolio (Details) - Held-to-maturity Securities - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | |||
Unpaid Principal Balance [Member] | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Balance | $ 161,566 | $ 338,957 | ||
Advances on existing interests in loans receivable | 14,653 | 101,767 | ||
Non-cash advances to interests in loans receivable in lieu of interest | 2,427 | 18,733 | ||
Repayments of interests in loans receivable | (165,468) | (269,988) | ||
Repayment of non-cash advances to interests in loans receivable in lieu of interest | (13,178) | 27,903 | ||
Balance | 161,566 | |||
Deferred Fees [Member] | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Balance | 298 | (687) | ||
Origination fees, extension fees and exit fees | (502) | (265) | ||
Accretion of origination fees, net | 204 | 1,250 | ||
Balance | 298 | |||
Carrying Value [Member] | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Balance | 161,864 | [1] | 338,270 | |
Advances on existing interests in loans receivable | 14,653 | [1] | 101,767 | |
Non-cash advances to interests in loans receivable in lieu of interest | 2,427 | [1] | 18,733 | |
Origination fees, extension fees and exit fees | (502) | [1] | (265) | |
Repayments of interests in loans receivable | (165,468) | [1] | (269,988) | |
Repayment of non-cash advances to interests in loans receivable in lieu of interest | (13,178) | [1] | 27,903 | |
Accretion of origination fees, net | $ 204 | [1] | 1,250 | |
Balance | [1] | $ 161,864 | ||
[1] Balance at December 31, 2021 does not include general CECL reserve. |
Loans Portfolio - Schedule of O
Loans Portfolio - Schedule of Overall Statistics for Loans Receivable and Interests in Loans Receivable Portfolio (Details) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Loans Receivable Portfolio | ||
Financing Receivable, Past Due [Line Items] | ||
Weighted average yield to maturity | 8.60% | 5.60% |
Weighted average term to fully extended maturity | 3 years 2 months 12 days | 3 years 3 months 18 days |
Interests In Loans Receivable Portfolio | ||
Financing Receivable, Past Due [Line Items] | ||
Weighted average yield to maturity | 6.70% | |
Weighted average term to fully extended maturity | 1 year 7 months 6 days |
Equity Method Investment - Addi
Equity Method Investment - Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Jun. 08, 2016 |
Schedule of Equity Method Investments [Line Items] | ||
Equity method investment | $ 41,880 | |
CMTG/TT | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity interest ownership percentage | 51% | 51% |
Equity method investment | $ 41,900 |
Real Estate Owned, Net - Additi
Real Estate Owned, Net - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Jun. 02, 2021 | Feb. 08, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Mortgage Loans On Real Estate [Line Items] | ||||||
Loan held by company | $ 631,311 | [1] | $ 420,844 | |||
Debt related to real estate owned, net | 289,389 | 289,806 | ||||
Gain on foreclosure of real estate owned | 1,430 | |||||
Real estate acquired through foreclosure, fair value | 401,189 | 406,887 | ||||
Real estate owned | 416,343 | 414,000 | ||||
Interest expense | 261,107 | 196,232 | $ 172,232 | |||
General and administrative expense | 18,686 | 12,591 | $ 9,004 | |||
Real Estate [Member] | ||||||
Mortgage Loans On Real Estate [Line Items] | ||||||
Aggregate cost for federal income tax | 427,300 | |||||
Land [Member] | ||||||
Mortgage Loans On Real Estate [Line Items] | ||||||
Real estate owned | 123,100 | $ 123,100 | ||||
Building And Improvements [Member] | ||||||
Mortgage Loans On Real Estate [Line Items] | ||||||
Real estate owned | $ 290,900 | |||||
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 | Dec. 31, 2022 | Dec. 31, 2021 |
Property Plant And Equipment [Line Items] | ||
Real estate owned | $ 416,343 | $ 414,000 |
Less: accumulated depreciation | (15,154) | (7,113) |
Real estate acquired through foreclosure, fair value | 401,189 | 406,887 |
Land | ||
Property Plant And Equipment [Line Items] | ||
Real estate owned | 123,100 | 123,100 |
Building | ||
Property Plant And Equipment [Line Items] | ||
Real estate owned | 284,400 | 284,400 |
Capital Improvements | ||
Property Plant And Equipment [Line Items] | ||
Real estate owned | 2,343 | |
Furniture, Fixtures and Equipment | ||
Property Plant And Equipment [Line Items] | ||
Real estate owned | $ 6,500 | $ 6,500 |
Debt Obligations - Summary of P
Debt Obligations - Summary of Portfolio Financings (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | ||
Short-Term Debt [Line Items] | ||||
Capacity | $ 7,776,447 | $ 5,605,210 | ||
Borrowing Outstanding | $ 5,688,361 | $ 4,758,550 | ||
Weighted Average Spread | 2.75% | [1] | 2.65% | |
Repurchase Agreements and Term Participation Facility [Member] | ||||
Short-Term Debt [Line Items] | ||||
Capacity | [2] | $ 5,700,000 | $ 4,065,000 | |
Borrowing Outstanding | [2] | $ 4,012,818 | $ 3,274,508 | |
Weighted Average Spread | [2] | 2.25% | [1] | 2% |
Repurchase agreements - Side Car [Member] | ||||
Short-Term Debt [Line Items] | ||||
Capacity | $ 271,171 | $ 271,171 | ||
Borrowing Outstanding | $ 211,572 | $ 215,003 | ||
Weighted Average Spread | 4.51% | [1] | 4.50% | |
Loan Participants Sold [Member] | ||||
Short-Term Debt [Line Items] | ||||
Capacity | $ 264,252 | $ 168,322 | ||
Borrowing Outstanding | $ 264,252 | $ 168,322 | ||
Weighted Average Spread | 3.68% | [1] | 3.79% | |
Notes Payable [Member] | ||||
Short-Term Debt [Line Items] | ||||
Capacity | $ 495,934 | $ 48,000 | ||
Borrowing Outstanding | $ 154,629 | $ 48,000 | ||
Weighted Average Spread | 3.09% | [1] | 4% | |
Securities Loaned [Member] | ||||
Short-Term Debt [Line Items] | ||||
Capacity | $ 755,090 | $ 762,717 | ||
Borrowing Outstanding | $ 755,090 | $ 762,717 | ||
Weighted Average Spread | 4.50% | [1] | 4.50% | |
Debt To Real Estate Owned [Member] | ||||
Short-Term Debt [Line Items] | ||||
Capacity | $ 290,000 | $ 290,000 | ||
Borrowing Outstanding | $ 290,000 | $ 290,000 | ||
Weighted Average Spread | 2.78% | [1] | 2.78% | |
[1] Weighted average spread over the applicable benchmark rate is based on unpaid principal balance. One-month LIBOR and SOFR as of December 31, 2022 were 4.39 % and 4.36 % , respectively. The repurchase facilities are partially recourse to us. The maximum guarantees under our repurchase agreements range from 25 % to 50 % of borrowings outstanding. As of December 31, 2022 and December 31, 2021, the weighted average recourse limitation on our repurchase and term participation facilities was 28 % and 27 %, respectively. |
Debt Obligations - Summary of_2
Debt Obligations - Summary of Portfolio Financings (Parenthetical) (Details) | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | |||
Short-Term Debt [Line Items] | ||||
Weighted Average Interest Rate | 8.12% | [1] | 5.40% | [2] |
Repurchase Agreements | Minimum | ||||
Short-Term Debt [Line Items] | ||||
Debt instrument repurchase guaranteed percentage | 25% | |||
Repurchase Agreements | Maximum | ||||
Short-Term Debt [Line Items] | ||||
Debt instrument repurchase guaranteed percentage | 50% | |||
Recourse Limitation | Repurchase Agreements | ||||
Short-Term Debt [Line Items] | ||||
Weighted Average Interest Rate | 28% | 27% | ||
Recourse Limitation | Term Participation Facility | ||||
Short-Term Debt [Line Items] | ||||
Weighted Average Interest Rate | 28% | 27% | ||
London Interbank Offered Rate (LIBOR) | ||||
Short-Term Debt [Line Items] | ||||
One month LIBOR/ SOFR rate | 4.39% | |||
Secured Overnight Financing Rate (SOFR) | ||||
Short-Term Debt [Line Items] | ||||
One month LIBOR/ SOFR rate | 4.36% | |||
[1] 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 unpaid principal balance as of December 31, 2022 and includes loans on non-accrual status. For loans placed on non-accrual, the interest rate used in calculating the weighted average spread is 0% . 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 unpaid principal balance as of December 31, 2021 and includes loans on non-accrual status |
Debt Obligations - Summary of R
Debt Obligations - Summary of Repurchase Agreements (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | ||||
Repurchase Agreement Counterparty [Line Items] | |||||
Repurchase agreements | $ 3,966,859 | $ 3,489,511 | |||
Repurchase Agreements and Term Participation Facility [Member] | |||||
Repurchase Agreement Counterparty [Line Items] | |||||
Maximum Capacity | 4,971,171 | 4,336,171 | |||
Repurchase agreements | 3,966,859 | 3,489,511 | |||
Undrawn Capacity | $ 1,004,312 | $ 846,660 | |||
Repurchase Agreements and Term Participation Facility [Member] | JP Morgan Chase Bank NA Main Pool [Member] | |||||
Repurchase Agreement Counterparty [Line Items] | |||||
Initial Maturity | Jun. 29, 2025 | [1] | Jun. 29, 2025 | [2],[3] | |
Fully Extended Maturity | Jun. 29, 2027 | Jun. 29, 2027 | [3] | ||
Maximum Capacity | $ 1,500,000 | $ 1,250,000 | [3] | ||
Repurchase agreements | 1,272,079 | 1,173,280 | [3] | ||
Undrawn Capacity | $ 227,921 | $ 76,720 | [3] | ||
Repurchase Agreements and Term Participation Facility [Member] | JP Morgan Chase Bank NA Side Car [Member] | |||||
Repurchase Agreement Counterparty [Line Items] | |||||
Initial Maturity | May 27, 2023 | [1] | May 27, 2023 | [2] | |
Fully Extended Maturity | May 27, 2024 | May 27, 2024 | |||
Maximum Capacity | $ 271,171 | $ 271,171 | |||
Repurchase agreements | 211,572 | 215,003 | |||
Undrawn Capacity | $ 59,599 | $ 56,168 | |||
Repurchase Agreements and Term Participation Facility [Member] | Morgan Stanley Bank NA [Member] | |||||
Repurchase Agreement Counterparty [Line Items] | |||||
Initial Maturity | Jan. 26, 2024 | [1],[4] | Jan. 26, 2023 | [2],[5] | |
Fully Extended Maturity | Jan. 26, 2025 | [4] | Jan. 26, 2024 | [5] | |
Maximum Capacity | $ 1,000,000 | [4] | $ 1,000,000 | [5] | |
Repurchase agreements | 859,624 | [4] | $ 1,000,000 | [5] | |
Undrawn Capacity | [4] | $ 140,376 | |||
Repurchase Agreements and Term Participation Facility [Member] | Goldman Sachs Bank USA [Member] | |||||
Repurchase Agreement Counterparty [Line Items] | |||||
Initial Maturity | May 31, 2024 | [1],[6] | May 31, 2022 | [2] | |
Fully Extended Maturity | May 31, 2025 | [6] | May 31, 2023 | ||
Maximum Capacity | $ 500,000 | [6] | $ 750,000 | ||
Repurchase agreements | 356,014 | [6] | 410,551 | ||
Undrawn Capacity | $ 143,986 | [6] | $ 339,449 | ||
Repurchase Agreements and Term Participation Facility [Member] | Barclays Bank PLC [Member] | |||||
Repurchase Agreement Counterparty [Line Items] | |||||
Initial Maturity | Dec. 20, 2024 | [1] | Dec. 20, 2022 | [2] | |
Fully Extended Maturity | Dec. 20, 2025 | Dec. 20, 2025 | |||
Maximum Capacity | $ 500,000 | $ 500,000 | |||
Repurchase agreements | 176,384 | 193,884 | |||
Undrawn Capacity | $ 323,616 | $ 306,116 | |||
Repurchase Agreements and Term Participation Facility [Member] | Deutsche Bank AG New York Branch [Member] | |||||
Repurchase Agreement Counterparty [Line Items] | |||||
Initial Maturity | Jun. 26, 2023 | [1] | Jun. 26, 2022 | [2] | |
Fully Extended Maturity | Jun. 26, 2026 | Jun. 26, 2023 | |||
Maximum Capacity | $ 400,000 | $ 265,000 | |||
Repurchase agreements | 345,583 | 211,372 | |||
Undrawn Capacity | $ 54,417 | $ 53,628 | |||
Repurchase Agreements and Term Participation Facility [Member] | Wells Fargo Bank NA [Member] | |||||
Repurchase Agreement Counterparty [Line Items] | |||||
Initial Maturity | Sep. 29, 2023 | [1] | Sep. 29, 2023 | [2] | |
Fully Extended Maturity | Sep. 29, 2026 | Sep. 29, 2026 | |||
Maximum Capacity | $ 800,000 | $ 300,000 | |||
Repurchase agreements | 745,603 | 285,421 | |||
Undrawn Capacity | $ 54,397 | $ 14,579 | |||
[1] Facility maturity dates may be extended based on certain conditions being met. Facility maturity dates may be extended based on certain conditions being met. On January 14, 2022, the facility capacity was increased to $ 1.5 billion. On January 24, 2023, we exercised our option to extend the initial maturity of this facility from January 26, 2023 to January 26, 2024 . 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 January 13, 2023, this facility was modified such that the initial maturity was extended from May 31, 2023 to May 31, 2024 . |
Debt Obligations - Summary of_3
Debt Obligations - Summary of Repurchase Agreements (Parenthetical) (Details) - USD ($) $ in Billions | Jan. 24, 2023 | Jan. 23, 2023 | Jan. 13, 2023 | Jan. 12, 2023 | Jan. 14, 2022 |
Repurchase Agreement Counterparty [Line Items] | |||||
Outstanding principal balance | $ 1.5 | ||||
Subsequent Event | |||||
Repurchase Agreement Counterparty [Line Items] | |||||
Contractual Maturity Date | Jan. 26, 2024 | Jan. 26, 2023 | May 31, 2024 | May 31, 2023 |
Debt Obligations - Summary of L
Debt Obligations - Summary of Liability Under Repurchase Agreements (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | |
Repurchase Agreement Counterparty [Line Items] | |||
Carrying Value | $ 263,798 | $ 167,744 | |
Loan held by company | 631,311 | [1] | 420,844 |
Repurchase Agreements | |||
Repurchase Agreement Counterparty [Line Items] | |||
Borrowing Outstanding | 3,966,859 | 3,489,511 | |
Carrying Value | 3,966,859 | 3,489,511 | |
Loan held by company | 5,982,086 | [2] | 5,336,756 |
Repurchase Agreements | JP Morgan Chase Bank NA Main Pool [Member] | |||
Repurchase Agreement Counterparty [Line Items] | |||
Borrowing Outstanding | 1,272,079 | 1,173,280 | |
Carrying Value | 1,272,079 | 1,173,280 | |
Loan held by company | 1,815,531 | [2] | 1,626,719 |
Repurchase Agreements | JP Morgan Chase Bank NA Side Car [Member] | |||
Repurchase Agreement Counterparty [Line Items] | |||
Borrowing Outstanding | 211,572 | 215,003 | |
Carrying Value | 211,572 | 215,003 | |
Loan held by company | 460,481 | [2] | 436,325 |
Repurchase Agreements | Morgan Stanley Bank NA [Member] | |||
Repurchase Agreement Counterparty [Line Items] | |||
Borrowing Outstanding | 859,624 | 1,000,000 | |
Carrying Value | 859,624 | 1,000,000 | |
Loan held by company | 1,340,573 | [2] | 1,709,758 |
Repurchase Agreements | Goldman Sachs Bank USA [Member] | |||
Repurchase Agreement Counterparty [Line Items] | |||
Borrowing Outstanding | 356,014 | 410,551 | |
Carrying Value | 356,014 | 410,551 | |
Loan held by company | 551,091 | [2] | 589,825 |
Repurchase Agreements | Barclays Bank PLC [Member] | |||
Repurchase Agreement Counterparty [Line Items] | |||
Borrowing Outstanding | 176,384 | 193,884 | |
Carrying Value | 176,384 | 193,884 | |
Loan held by company | 269,973 | [2] | 283,716 |
Repurchase Agreements | Deutsche Bank AG New York Branch [Member] | |||
Repurchase Agreement Counterparty [Line Items] | |||
Borrowing Outstanding | 345,583 | 211,372 | |
Carrying Value | 345,583 | 211,372 | |
Loan held by company | 591,592 | [2] | 327,671 |
Repurchase Agreements | Wells Fargo Bank NA [Member] | |||
Repurchase Agreement Counterparty [Line Items] | |||
Borrowing Outstanding | 745,603 | 285,421 | |
Carrying Value | 745,603 | 285,421 | |
Loan held by company | $ 952,845 | [2] | $ 362,742 |
[1] Includes cash reserve balances. Net of specific CECL reserve of $ 60.3 million. |
Debt Obligations -Summary of Li
Debt Obligations -Summary of Liability Under Repurchase Agreement (Parenthetical) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | |||
Repurchase Agreement Counterparty [Line Items] | ||||
Specific CECL Reserve | $ (60,300) | [1] | $ (6,333) | [2] |
[1] Loans classified as non-accrual represented 4.8 % of the total loan portfolio at December 31, 2022 , based on carrying value. Excludes three loans with an aggregate carrying value of $ 360.0 million that are in maturity default. Loans classified as non-accrual represented 5.6 % of the total loan portfolio at December 31, 2021, based on carrying value. |
Debt Obligations - Additional I
Debt Obligations - Additional Information (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||||||||
Nov. 04, 2022 | Jun. 29, 2022 | Dec. 02, 2021 | Jun. 02, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Feb. 08, 2021 | Dec. 01, 2020 | Aug. 09, 2019 | |
Debt Instrument [Line Items] | ||||||||||
Line of credit, maximum borrowing capacity | $ 141,100 | |||||||||
Secured term loan | $ 325,000 | $ 450,000 | ||||||||
One-month SOFR | 4.50% | |||||||||
Interest expense | 261,107 | $ 196,232 | $ 172,232 | |||||||
General and administrative expenses | $ 18,686 | $ 12,591 | $ 9,004 | |||||||
Debt instrument, variable interest rate basis | 0% | |||||||||
Secured Overnight Financing Rate (SOFR) | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument basis spread on variable rate | 4.36% | |||||||||
Secured Term Loan | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Principal payments | $ 1,900 | |||||||||
Contractual Maturity Date | Aug. 09, 2026 | Aug. 09, 2026 | ||||||||
Secured Term Loan | Secured Overnight Financing Rate (SOFR) | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument basis spread on variable rate | 4.36% | 0.05% | ||||||||
Secured Term Loan | Secured Overnight Financing Rate (SOFR) | Minimum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
One-month SOFR | 0.10% | |||||||||
Secured Term Loan | Secured Overnight Financing Rate (SOFR) | Maximum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
One-month SOFR | 0.50% | |||||||||
Term Participation Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Credit facility outstanding balance | $ 257,531 | |||||||||
Contractual Maturity Date | Dec. 21, 2027 | |||||||||
Term Participation Facility | Master Participation and Administration Agreement | Mortgage Loans | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit, maximum borrowing capacity | $ 1,000,000 | $ 481,400 | ||||||||
Credit facility outstanding balance | $ 257,500 | |||||||||
Maturity period | 5 years | |||||||||
Maturity date | Nov. 04, 2023 | Dec. 21, 2027 | ||||||||
Acquisition Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit, maximum borrowing capacity | $ 150,000 | |||||||||
Credit facility outstanding balance | $ 0 | |||||||||
Contractual Maturity Date | Jun. 29, 2025 | |||||||||
Credit facility initial advance rate | 75% | |||||||||
Credit spread adjustment rate | 2.25 | |||||||||
Line of credit facility increase | $ 500,000 | |||||||||
Acquisition Facility | Secured Overnight Financing Rate (SOFR) | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, variable interest rate basis | one-month term | |||||||||
Debt instrument basis spread on variable rate | 0.10% | |||||||||
Real Estate Investment | ||||||||||
Debt Instrument [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 |
Debt Obligations - Summary of T
Debt Obligations - Summary of Term Participations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | ||
Term Participations [Line Items] | |||
Carrying Value | $ 263,798 | $ 167,744 | |
Loan held by company | $ 631,311 | [1] | $ 420,844 |
Term Participation Facility | |||
Term Participations [Line Items] | |||
Contractual Maturity Date | Dec. 21, 2027 | ||
Borrowing Outstanding | $ 257,531 | ||
Carrying Value | 257,531 | ||
Loan held by company | $ 375,769 | ||
[1] Includes cash reserve balances. |
Debt Obligations - Summary of_4
Debt Obligations - Summary of Loan Participations Sold (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | |||
Loan Participations Sold [Line Items] | ||||
Borrowing Outstanding | $ 264,252 | $ 168,322 | ||
Carrying Value | 263,798 | 167,744 | ||
Loan held by company | $ 631,311 | [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 | $ 281,123 | [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 | 105,645 | |||
Loan held by company | [1] | $ 192,355 | ||
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 | 19,831 | 19,611 | ||
Loan held by company | $ 157,833 | [1] | $ 130,061 | |
[1] Includes cash reserve balances. |
Debt Obligations - Summary of N
Debt Obligations - Summary of Notes Payable (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | ||
Debt Instrument [Line Items] | |||
Borrowing Outstanding | $ 154,629 | ||
Carrying Value | 149,521 | ||
Loan held by company | $ 237,711 | ||
Notes Payable [Member] | |||
Debt Instrument [Line Items] | |||
Contractual Maturity Date | [1] | Jan. 04, 2022 | |
Maximum Extension Date | Jan. 04, 2022 | ||
Borrowing Outstanding | $ 48,000 | ||
Carrying Value | 48,000 | ||
Loan held by company | [2] | $ 116,512 | |
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 | 102,467 | ||
Loan held by company | $ 157,833 | ||
Notes Payable Two | |||
Debt Instrument [Line Items] | |||
Contractual Maturity Date | Feb. 02, 2026 | ||
Maximum Extension Date | Feb. 02, 2027 | ||
Borrowing Outstanding | $ 28,288 | ||
Carrying Value | 27,292 | ||
Loan held by company | $ 34,199 | ||
Notes Payable Three | |||
Debt Instrument [Line Items] | |||
Contractual Maturity Date | Jun. 30, 2025 | ||
Maximum Extension Date | Jun. 30, 2026 | ||
Borrowing Outstanding | $ 4,777 | ||
Carrying Value | 4,354 | ||
Loan held by company | $ 16,290 | ||
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 Five | |||
Debt Instrument [Line Items] | |||
Contractual Maturity Date | Nov. 22, 2024 | ||
Maximum Extension Date | Nov. 24, 2026 | ||
Borrowing Outstanding | $ 16,055 | ||
Carrying Value | 15,497 | ||
Loan held by company | $ 25,403 | ||
Notes Payable Six | |||
Debt Instrument [Line Items] | |||
Contractual Maturity Date | Oct. 13, 2025 | ||
Maximum Extension Date | Oct. 13, 2026 | ||
Borrowing Outstanding | $ 1,917 | ||
Carrying Value | 1,145 | ||
Loan held by company | $ 5,749 | ||
[1] 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 cash reserve balances held by the servicer. |
Debt Obligations - Summary of S
Debt Obligations - Summary of Secured Term Loan (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | |||
Secured Term Loan [Line Items] | ||||
Borrowing Outstanding | $ 154,629 | |||
Carrying Value | $ 263,798 | $ 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 | 8.96% | 5% | ||
Borrowing Outstanding | $ 755,090 | $ 762,717 | ||
Carrying Value | $ 736,853 | $ 739,762 | ||
[1] One-month term SOFR at December 31, 2022 was 4.36 % . One-month term SOFR at December 31, 2021 was 0.05 % . |
Debt Obligations - Summary of_5
Debt Obligations - Summary of Secured Term Loan (Parenthetical) (Details) - Secured Overnight Financing Rate (SOFR) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Secured Term Loan [Line Items] | ||
One month LIBOR/ SOFR rate | 4.36% | |
Secured Term Loan | ||
Secured Term Loan [Line Items] | ||
One month LIBOR/ SOFR rate | 4.36% | 0.05% |
Debt Obligations - Summary of D
Debt Obligations - Summary of Debt Related To Real Estate Owned (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | |||
Debt Instrument Real Estate Owned Net [Line Items] | ||||
Carrying Value | $ 263,798 | $ 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% | [1] | 3.53% | |
Borrowing Outstanding | $ 290,000 | $ 290,000 | ||
Carrying Value | $ 289,389 | $ 289,806 | ||
[1] One-month LIBOR at December 31, 2022 was 4.39 % , which exceeds 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 % . |
Debt Obligations - Summary of_6
Debt Obligations - Summary of Debt Related To Real Estate Owned (Parenthetical) (Details) - Real Estate Investment | 1 Months Ended | 12 Months Ended |
Dec. 31, 2021 | Dec. 31, 2022 | |
Interest Rate Cap | ||
Debt Instrument Real Estate Owned Net [Line Items] | ||
LIBOR floor | 3% | |
One Month L I B O R | ||
Debt Instrument Real Estate Owned Net [Line Items] | ||
LIBOR floor | 0.10% | 4.39% |
Debt Obligations - Summary of I
Debt Obligations - Summary of Interest Expense and Amortization (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Debt Disclosure [Abstract] | ||||
Interest expense on secured financings | $ 178,036 | $ 113,300 | $ 132,389 | |
Interest expense on secured term loan | 48,756 | 46,038 | 20,205 | |
Interest expense on debt related to real estate owned | [1] | 14,170 | 15,643 | |
Amortization of financing costs | 20,145 | 21,251 | 19,638 | |
Total interest and related expense | $ 261,107 | $ 196,232 | $ 172,232 | |
[1] Interest on debt related to real estate owned includes $ 309,000 and $ 56,000 of amortization of financing costs for the years ended December 31, 2022 and 2021 , respectively. |
Debt Obligations - Summary of_7
Debt Obligations - Summary of Interest Expense and Amortization (Parenthetical) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Debt Disclosure [Abstract] | ||
Amortization of financing costs included in Interest on debt related to real estate owned | $ 309,000 | $ 56,000 |
Derivatives - Additional Inform
Derivatives - Additional Information (Details) - USD ($) | 12 Months Ended | |
Jun. 02, 2021 | Dec. 31, 2022 | |
Derivatives Fair Value Line Items | ||
Proceeds from interest rate cap | $ 495,000 | |
Interest Rate Cap | ||
Derivatives Fair Value Line Items | ||
Derivative liability notional amount | $ 290,000,000 | |
Derivative maturity date | Feb. 15, 2024 | |
Derivative notional amount | $ 275,000 | |
Fair value of interest rate cap | 6,000,000 | |
Proceeds from interest rate cap | $ 495,000 | |
Interest Rate Cap | Maximum | ||
Derivatives Fair Value Line Items | ||
Maximum interest rate of debt related to real estate owned | 5.78% |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) $ in Millions | Dec. 31, 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 | $ 6 | $ 0 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Financial Instruments Measured at Carrying And Estimated Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Loans receivable held-for-investment, net | $ 7,360,427 | $ 6,340,295 |
Interests in loans receivable held-for- investment, net | 161,850 | |
Repurchase agreements | 3,966,859 | 3,489,511 |
Term participation facility | 257,531 | |
Loan participations sold, net | 263,798 | 167,744 |
Notes payable, net | 149,521 | 48,000 |
Secured term loan, net | 736,853 | 739,762 |
Debt related to real estate owned, net | 289,389 | 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 | 7,538,525 | 6,441,238 |
Interests in loans receivable held-for- investment, net | 161,566 | |
Repurchase agreements | 3,966,859 | 3,489,511 |
Term Participation Facility | 257,531 | |
Loan participations sold, net | 264,252 | 168,322 |
Notes payable, net | 154,629 | 48,000 |
Secured term loan, net | 755,090 | 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 | 7,331,207 | 6,434,157 |
Interests in loans receivable held-for- investment, net | 161,883 | |
Repurchase agreements | 3,966,859 | 3,484,834 |
Term Participation Facility | 255,296 | |
Loan participations sold, net | 261,417 | 168,738 |
Notes payable, net | 153,282 | 48,000 |
Secured term loan, net | 743,764 | 762,717 |
Debt related to real estate owned, net | 281,568 | 281,723 |
Level 3 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Loans receivable held-for-investment, net | 7,331,207 | 6,434,157 |
Interests in loans receivable held-for- investment, net | 161,883 | |
Repurchase agreements | 3,966,859 | 3,484,834 |
Term Participation Facility | 255,296 | |
Loan participations sold, net | 261,417 | 168,738 |
Notes payable, net | 153,282 | 48,000 |
Secured term loan, net | 743,764 | 762,717 |
Debt related to real estate owned, net | $ 281,568 | $ 281,723 |
Equity - Additional Information
Equity - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 15, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Class Of Stock [Line Items] | |||
Common stock authorized | 500,000,000 | 500,000,000 | |
Common stock par value | $ 0.01 | $ 0.01 | |
Common stock issued | 140,055,714 | 140,055,714 | |
Common stock outstanding | 138,376,144 | 139,840,088 | |
Shares Issued, Price Per Share | $ 1,000 | ||
Preferred Stock, Redemption Price Per Share | $ 1,000 | ||
Preferred stock, shares issued | 125 | ||
Preferred stock, dividend rate | 12.50% | ||
Common Stock [Member] | |||
Class Of Stock [Line Items] | |||
Common stock authorized | 500,000,000 | 500,000,000 | |
Common stock par value | $ 0.01 | $ 0.01 | |
Common stock issued | 140,055,714 | ||
Common stock outstanding | 138,376,144 | 139,840,088 | |
Amount of common stock shares purchased in open market | $ 25 | ||
Stock Repurchased During Period, Shares | 1,679,570 | ||
Average price per share | $ 14.88 | ||
Repurchase value | $ 25 | ||
Preferred Stock [Member] | |||
Class Of Stock [Line Items] | |||
Shares Issued, Price Per Share | $ 1,000 | $ 1,000 | |
Preferred stock, shares authorized | 10,000,000 | ||
Preferred stock, par value | $ 0.01 | ||
Redeemed Preferred Stocks During Period | 125 | ||
Preferred Stock, Redemption Price Per Share | $ 1,000 | ||
Preferred stock, shares outstanding | 0 | 0 | |
Preferred stock, dividend rate | 12.50% |
Equity - Schedule of Common Sto
Equity - Schedule of Common Stock Issued and Outstanding (Details) - Common Stock [Member] - shares | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |||
Class Of Stock [Line Items] | |||||
Beginning balance | 139,840,088 | 132,848,720 | [1] | 129,348,720 | [1] |
Redeemable common stock issued | 5,524,934 | 3,500,000 | [1] | ||
Conversion of fully vested RSUs to common stock | 1,682,060 | 0 | |||
Repurchase of common stock | (1,463,944) | (215,626) | |||
Ending balance | 138,376,144 | 139,840,088 | 132,848,720 | [1] | |
[1] Amount at December 31, 2020 includes fully vested RSUs, which includes 877,498 of common stock underlying the vested RSUs. |
Equity - Schedule of Common S_2
Equity - Schedule of Common Stock Issued and Outstanding (Parenthetical) (Details) - shares | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2020 | |
RSUs | ||
Class Of Stock [Line Items] | ||
Shares vested | 6,850 | 877,498 |
Equity - Summary of Dividends D
Equity - Summary of Dividends Declared For Common, Redeemable common, Vested Restricted Stock Units And Preferred Stock (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |||||
Class Of Stock [Line Items] | |||||||||||||||||||
Dividends declared - preferred stock | $ 208,350 | $ 194,961 | $ 204,465 | ||||||||||||||||
Record Date - common stock | Dec. 30, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 17, 2021 | Jun. 16, 2021 | Mar. 19, 2021 | Dec. 22, 2020 | Sep. 29, 2020 | Jun. 18, 2020 | Mar. 04, 2020 | |||||||
Payment Date - common stock | Jan. 13, 2023 | Oct. 14, 2022 | Jul. 15, 2022 | Apr. 15, 2022 | Jan. 15, 2022 | Oct. 07, 2021 | Jul. 07, 2021 | Apr. 01, 2021 | Jan. 04, 2021 | Oct. 01, 2020 | Jul. 01, 2020 | Apr. 02, 2020 | |||||||
Common Stock [Member] | |||||||||||||||||||
Class Of Stock [Line Items] | |||||||||||||||||||
Dividends declared - common stock | $ 51,202 | $ 51,420 | $ 51,659 | $ 51,672 | $ 51,741 | $ 50,000 | $ 50,000 | $ 50,000 | $ 50,000 | $ 50,000 | $ 59,000 | $ 56,000 | |||||||
Dividends declared - common stock per share | $ 0.37 | $ 0.37 | $ 0.37 | $ 0.37 | $ 0.37 | $ 0.37 | $ 0.37 | $ 0.37 | $ 0.37 | $ 0.37 | $ 0.44 | $ 0.43 | |||||||
Preferred Stock [Member] | |||||||||||||||||||
Class Of Stock [Line Items] | |||||||||||||||||||
Dividends declared - preferred stock | $ 4 | [1] | $ 4 | [1] | $ 4 | [1] | $ 4 | [1] | $ 8 | $ 8 | $ 8 | $ 8 | $ 16 | $ 31 | |||||
Dividends declared, preferred stock | $ 0.03 | [1] | $ 0.03 | [1] | $ 0.03 | [1] | $ 0.03 | [1] | $ 0.03 | $ 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 |
Class of Stock [Line Items] | |
Preferred stock, shares issued | shares | 125 |
Shares Issued, Price Per Share | $ 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 | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities | 0 | 0 | 0 |
Weighted average unvested (RSU) | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities | 1,190,126 | 0 | 0 |
Earnings per Share - Schedule o
Earnings per Share - Schedule of Basic and Diluted Earning per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Earnings Per Share [Abstract] | ||||
Net income attributable to common stockholders | $ 112,064 | $ 170,537 | $ 202,378 | |
Dividends on participating securities | (2,397) | |||
Basic earnings | $ 109,667 | $ 170,537 | $ 202,378 | |
Weighted-average shares of common stock outstanding - basic | [1] | 139,306,311 | 134,539,645 | 132,980,316 |
Weighted-average shares of common stock outstanding - diluted | [1] | 139,306,311 | 134,539,645 | 132,980,316 |
Net income per share of common stock - basic | $ 0.79 | $ 1.27 | $ 1.52 | |
Net income per share of common stock - diluted | $ 0.79 | $ 1.27 | $ 1.52 | |
[1] Amounts at December 31, 2020 include fully vested RSUs, which includes 877,498 common stock underlying vested RSUs. Amounts at December 31, 2022 include fully vested RSUs, which include 6,850 common stock underlying vested RSUs. |
Earnings per Share - Schedule_2
Earnings per Share - Schedule of Basic and Diluted Earning per Share (Parenthetical) (Details) - shares | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2020 | |
RSUs | ||
Earnings Per Share Diluted [Line Items] | ||
Shares vested | 6,850 | 877,498 |
Related Party Transactions - Su
Related Party Transactions - Summary of Management and Incentive Fees (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |||
Management fees - affiliate | $ 39,461 | $ 39,135 | $ 38,960 |
Incentive fees - affiliate | 7,766 | ||
Total | $ 39,461 | $ 39,135 | $ 46,726 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Related Party Transaction [Line Items] | |||
Annual base management fee percentage | 1.50% | ||
Base management fee payable to affiliate | $ 9,867,000 | $ 9,983,000 | |
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 December 31, 2022 and 2021. | ||
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. 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 | |
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. | ||
Other liabilities | $ 59,223,000 | 54,457,000 | |
Outstanding principal balance | 97,800,000 | 54,000,000 | |
Loan commitment | $ 141,100,000 | ||
Affiliate Shareholder | |||
Related Party Transaction [Line Items] | |||
Common Stock Outstanding | 10.90% | ||
Reimbursements | |||
Related Party Transaction [Line Items] | |||
General and administrative expense | $ 1,300,000 | 0 | $ 100,000 |
Other liabilities | $ 700,000 | $ 0 | |
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% |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - USD ($) | 12 Months Ended | ||||||||
Jun. 14, 2022 | Jun. 01, 2022 | Apr. 04, 2021 | Apr. 04, 2019 | Jan. 01, 2019 | Mar. 30, 2016 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Unrecognized compensation expense | $ 33,000,000 | ||||||||
Unrecognized compensation expense expected to recognized over a remaining period | 2 years 4 months 24 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 | 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 | ||||||||
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 | Other Income | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Stock-Based compensation | $ 5,900,000 | ||||||||
Performance-based Restricted Stock Units | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
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 | $ 19.84 | |||||||
Dividend Equivalents Payable | $ 4,900,000 | ||||||||
Performance-based Restricted Stock Units | Minimum | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Vesting percentage | 0% | ||||||||
Performance-based Restricted Stock Units | Maximum | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Vesting percentage | 100% | ||||||||
RSUs | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Stock-Based compensation | $ 7,500,000 | $ 8,800,000 | $ 5,700,000 | ||||||
Shares vested | 6,850 | 877,498 | |||||||
RSUs | Non-Employee Board Members | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Stock-Based compensation | $ 98,000 | ||||||||
Maximum number of shares issued under the plan | 6,850 | ||||||||
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 | 12 Months Ended | |||
Apr. 04, 2021 | Apr. 04, 2019 | Dec. 31, 2022 | Dec. 31, 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, Vested | (584,767) | |||
Number of Restricted Shares, Unvested ending balance | 2,159,280 | |||
Grant Date Fair Value Per Share, Granted | $ 18.74 | |||
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, Vested | (1,097,293) | |||
Number of Restricted Shares, Unvested ending balance | ||||
Grant Date Fair Value Per Share, Unvested beginning balance | $ 20 | |||
Grant Date Fair Value Per Share, Vested | $ (20) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule Of Income Loss Before Income Taxes [Line Items] | |||
Deferred tax asset | $ 16,600,000 | $ 14,600,000 | |
Valuation allowance | 16,600,000 | 14,600,000 | |
Uncertain tax positions | 0 | 0 | |
Investment basis difference in real estate owned | 4,000,000 | 4,000,000 | |
Net operating loss carryforward | 14,700,000 | 10,600,000 | |
Net unrealized gain | $ 2,100,000 | ||
TRS [Member] | |||
Schedule Of Income Loss Before Income Taxes [Line Items] | |||
Percentage of REIT taxable income | 90% | ||
Net deferred tax assets | $ 0 | 0 | |
Net deferred tax liabilities | $ 0 | $ 0 | |
Federal statutory income tax rate, percent | 21% | 21% | 21% |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Loss Contingencies [Line Items] | ||
Return of capital distribution from CMTG/CN Mortgage REIT LLC | $ 123.3 | $ 111.1 |
Loan Commitments Refunded | $ 1,900 | 1,100 |
Maximum | ||
Loss Contingencies [Line Items] | ||
Lease Expiration Period | 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 | Dec. 31, 2022 | Dec. 31, 2021 |
Commitments and Contingencies Disclosure [Abstract] | ||
2023 | $ 386,660 | |
2024 | 853,634 | |
2025 | 1,500,210 | |
2026 | 1,870,234 | |
2027 | 1,077,623 | |
Long-term Debt | $ 5,688,361 | $ 4,758,550 |
Commitments and Contingencies_3
Commitments and Contingencies - Schedule of Contractual Maturity Payment (Parenthetical) (Details) $ in Thousands | Dec. 31, 2022 USD ($) Loan | Dec. 31, 2021 USD ($) |
Loss Contingencies [Line Items] | ||
Borrowing Outstanding | $ 5,688,361 | $ 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) $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) Loan | |
Subsequent Events [Abstract] | |
Number of loans repayment received | Loan | 1 |
Repayment of loans unpaid principal amount | $ | $ 75 |
Segment Reporting - Schedule of
Segment Reporting - Schedule of Performance Based Segment Reporting Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenue | |||
Interest and related income | $ 470,668 | $ 415,263 | $ 445,940 |
Less: interest and related expense | 261,107 | 196,232 | 172,232 |
Net interest income | 223,731 | 234,674 | 273,708 |
Total revenue | 287,201 | 262,658 | 273,708 |
Management fees - affiliate | 39,461 | 39,135 | 38,960 |
Incentive fees - affiliate | 7,766 | ||
Equity compensation | 7,457 | 8,812 | 5,670 |
General and administrative expenses | 18,686 | 12,591 | 9,004 |
Total expenses | 129,797 | 108,375 | 61,400 |
Gain on foreclosure of real estate owned | 1,430 | ||
Reversal of current expected credit loss | (84,361) | 8,962 | $ (6,000) |
Total other income (loss) | 5,855 | ||
Total Assets as of December 31, 2021 | $ 8,241,513 | $ 7,455,271 |
Schedule IV - Mortgage Loans _2
Schedule IV - Mortgage Loans on Real Estate (Details) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2022 USD ($) Loan | Dec. 31, 2021 USD ($) Loan | ||||
Mortgage Loans On Real Estate [Line Items] | |||||
Number of Loans | Loan | 77 | 59 | |||
Principal Balance | $ 7,538,525 | $ 6,602,804 | |||
Principal Amount of Loans Subject to Delinquent Principal or Interest | 776,804 | ||||
Principal Amount of Loans Subject to Delinquent Principal or Interest Net | 776,804 | ||||
Carrying value gross | 7,428,774 | [1],[2],[3] | 6,562,836 | [4] | |
General CECL reserve | [2],[3] | (68,347) | |||
Total loans after allowance for loan losses | 7,360,427 | [1],[2],[3] | $ 6,502,145 | [4] | |
Senior Mortgage Loan | |||||
Mortgage Loans On Real Estate [Line Items] | |||||
Principal Balance | 1,515,183 | ||||
Carrying Amount of Loans | [2],[3] | 1,511,468 | |||
Principal Amount of Loans Subject to Delinquent Principal or Interest | $ 221,605 | ||||
Senior Mortgage Loan | Multifamily/Northeast [Member] | |||||
Mortgage Loans On Real Estate [Line Items] | |||||
Description/Location | Multifamily/Northeast | ||||
Interest Payment Rates | [5] | 2.75% | |||
Periodic Payment Terms | [6] | I/O | |||
Principal Balance | $ 390,000 | ||||
Carrying Amount of Loans | [2],[3] | $ 388,918 | |||
Senior Mortgage Loan | Multifamily/Northeast [Member] | Maximum | |||||
Mortgage Loans On Real Estate [Line Items] | |||||
Maximum Maturity Date | [7] | 2026 | |||
Senior Mortgage Loan | Multi Family/ West [Member] | |||||
Mortgage Loans On Real Estate [Line Items] | |||||
Description/Location | Multifamily/West | ||||
Interest Payment Rates | [5] | 2.90% | |||
Periodic Payment Terms | [6] | I/O | |||
Principal Balance | $ 399,499 | ||||
Carrying Amount of Loans | [2],[3] | $ 396,894 | |||
Senior Mortgage Loan | Multi Family/ West [Member] | Maximum | |||||
Mortgage Loans On Real Estate [Line Items] | |||||
Maximum Maturity Date | [7] | 2027 | |||
Senior Mortgage Loan | Hospitality/Northeast [Member] | |||||
Mortgage Loans On Real Estate [Line Items] | |||||
Description/Location | Hospitality/Northeast | ||||
Interest Payment Rates | [5] | 5.44% | |||
Periodic Payment Terms | [6] | I/O | |||
Principal Balance | $ 280,000 | ||||
Carrying Amount of Loans | [2],[3] | $ 281,123 | |||
Senior Mortgage Loan | Hospitality/Northeast [Member] | Maximum | |||||
Mortgage Loans On Real Estate [Line Items] | |||||
Maximum Maturity Date | [7] | 2023 | |||
Senior Mortgage Loan | Hospitality/Southeast [Member] | |||||
Mortgage Loans On Real Estate [Line Items] | |||||
Description/Location | Hospitality/Southeast | ||||
Interest Payment Rates | [5] | 4.80% | |||
Periodic Payment Terms | [6] | I/O | |||
Principal Balance | $ 224,079 | ||||
Carrying Amount of Loans | [2],[3] | $ 222,928 | |||
Senior Mortgage Loan | Hospitality/Southeast [Member] | Maximum | |||||
Mortgage Loans On Real Estate [Line Items] | |||||
Maximum Maturity Date | [7] | 2026 | |||
Senior Mortgage Loan | For Sale Condo/West [Member] | |||||
Mortgage Loans On Real Estate [Line Items] | |||||
Description/Location | For-Sale Condo/West | ||||
Interest Payment Rates | [5] | 4.95% | |||
Periodic Payment Terms | [6] | I/O | |||
Principal Balance | $ 221,605 | ||||
Carrying Amount of Loans | [2],[3] | 221,605 | |||
Principal Amount of Loans Subject to Delinquent Principal or Interest | $ 221,605 | ||||
Senior Mortgage Loan | For Sale Condo/West [Member] | Maximum | |||||
Mortgage Loans On Real Estate [Line Items] | |||||
Maximum Maturity Date | [7] | 2024 | |||
Senior Mortgage Loan [Member] | Various [Member] | |||||
Mortgage Loans On Real Estate [Line Items] | |||||
Description/Location | Various | ||||
Number of Loans | Loan | 68 | ||||
Periodic Payment Terms | [6] | I/O | |||
Principal Balance | $ 5,835,652 | ||||
Carrying Amount of Loans | [2],[3] | 5,729,691 | |||
Principal Amount of Loans Subject to Delinquent Principal or Interest | $ 522,297 | ||||
Senior Mortgage Loan [Member] | Various [Member] | Minimum | |||||
Mortgage Loans On Real Estate [Line Items] | |||||
Interest Payment Rates | [5] | 2.75% | |||
Maximum Maturity Date | [7] | 2020 | |||
Senior Mortgage Loan [Member] | Various [Member] | Maximum | |||||
Mortgage Loans On Real Estate [Line Items] | |||||
Interest Payment Rates | [5] | 10.50% | |||
Maximum Maturity Date | [7] | 2029 | |||
Mezzanine Loan | Various [Member] | |||||
Mortgage Loans On Real Estate [Line Items] | |||||
Description/Location | Various | ||||
Number of Loans | Loan | 4 | ||||
Periodic Payment Terms | [6] | I/O | |||
Principal Balance | $ 187,690 | ||||
Carrying Amount of Loans | [2],[3] | 187,615 | |||
Principal Amount of Loans Subject to Delinquent Principal or Interest | $ 32,902 | ||||
Mezzanine Loan | Various [Member] | Minimum | |||||
Mortgage Loans On Real Estate [Line Items] | |||||
Interest Payment Rates | [5] | 10.51% | |||
Maximum Maturity Date | [7] | 2022 | |||
Mezzanine Loan | Various [Member] | Maximum | |||||
Mortgage Loans On Real Estate [Line Items] | |||||
Interest Payment Rates | [5] | 12.75% | |||
Maximum Maturity Date | [7] | 2027 | |||
[1] Net of specific CECL reserve of $ 60.3 million. Includes specific CECL reserve of $ 60.3 million. The tax basis of the loans included above is $ 7,490,392 as of December 31, 2022 . Net of specific CECL reserve of $ 6.3 million. As a spread over one month LIBOR or SOFR. I/O = interest only until final maturity unless otherwise noted, P = Loans are subject to spread maintenance premiums or other prepayment penalty if paid before date specified within the loan agreement. Maximum maturity date assumes all extension options are exercised. |
Schedule IV - Mortgage Loans _3
Schedule IV - Mortgage Loans on Real Estate (Details) (Parenthetical) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Mortgage Loans On Real Estate [Line Items] | |
Tax basis | $ 7,490,392 |
Specific CECL reserve | $ 60,300 |
Schedule IV - Reconciliation of
Schedule IV - Reconciliation of Mortgage Loans on Real Estate (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Abstract] | |||
Balance at January 1, | [1] | $ 6,502,145 | $ 6,464,095 |
Loan fundings | [1] | 2,647,363 | 3,056,293 |
Payment in kind interest | [1] | 80,878 | 88,024 |
Amortization of deferred fees and expenses | [1] | 24,967 | 26,487 |
Collections of principal, including sales proceeds | [1] | (1,810,438) | (2,926,566) |
Deferred origination fees and expenses | [1] | (42,039) | (39,361) |
Realized loss on sale of investments | [1] | 30,701 | (141) |
Transfer to real estate owned, net | [1] | (103,901) | |
Provision for current expected credit losses (2) | [1],[2] | (73,150) | (62,785) |
Balance at December 31, | [1] | $ 7,360,427 | $ 6,502,145 |
[1] Includes Mortgage and Mezzanine loans See Note 3 – Loans Portfolio of the consolidated financial statements for information on current expected credit losses. |