Document And Entity Information
Document And Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Feb. 16, 2024 | Jun. 30, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2023 | ||
Document Fiscal Year Focus | 2023 | ||
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 | 138,745,357 | ||
Entity Public Float | $ 890 | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction [Flag] | false | ||
Title of 12(b) Security | Common Stock, $0.01 par value per share | ||
Entity File Number | 001-40993 | ||
Entity Incorporation, State or Country Code | MD | ||
Entity Tax Identification Number | 47-4074900 | ||
Security Exchange Name | NYSE | ||
Entity Address, Address Line One | c/o Mack Real Estate Credit Strategies, L.P. | ||
Entity Address, Address Line Two | 60 Columbus Circle | ||
Entity Address, Address Line Three | 20th Floor | ||
Entity Address, City or Town | New York | ||
Entity Address, State or Province | NY | ||
Entity Address, Postal Zip Code | 10023 | ||
City Area Code | 212 | ||
Local Phone Number | 484-0050 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Documents Incorporated by Reference [Text Block] | Portions of the definitive proxy statement to be filed with the Securities and Exchange Commission (“SEC”) pursuant to Regulation 14A relating to the registrant’s 2024 Annual Meeting of Stockholders will be incorporated by reference in this Form 10-K in response to Items 10, 11, 12, 13 and 14 of Part III. The definitive proxy statement will be filed with the SEC no later than 120 days after the registrant’s fiscal year end. | ||
Auditor Firm ID | 238 | ||
Auditor Name | PricewaterhouseCoopers LLP | ||
Auditor Location | New York, New York |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Assets | ||
Cash and cash equivalents | $ 187,301 | $ 306,456 |
Restricted cash | 27,588 | 41,703 |
Loan principal payments held by servicer | 11,000 | |
Loans receivable held-for-investment | 7,020,383 | 7,489,074 |
Less: current expected credit loss reserve | (142,958) | (128,647) |
Loans receivable held-for-investment, net | 6,877,425 | 7,360,427 |
Loans receivable held-for-sale | 261,709 | |
Equity method investment | 42,474 | 41,880 |
Real estate owned, net | 522,959 | 401,189 |
Other assets | 138,905 | 89,858 |
Total assets | 8,069,361 | 8,241,513 |
Liabilities and Equity | ||
Repurchase agreements | 3,805,678 | 3,966,859 |
Term participation facility | 465,434 | 257,531 |
Loan participations sold, net | 120,508 | 263,798 |
Notes payable, net | 283,341 | 149,521 |
Secured term loan, net | 712,576 | 736,853 |
Debt related to real estate owned, net | 289,913 | 289,389 |
Other liabilities | 47,368 | 59,223 |
Dividends payable | 35,328 | 52,001 |
Management fee payable - affiliate | 9,315 | 9,867 |
Total liabilities | 5,769,461 | 5,785,042 |
Commitments and contingencies - Note 14 | ||
Equity | ||
Common stock, $0.01 par value, 500,000,000 shares authorized, 138,745,357 and 140,055,714 shares issued and 138,745,357 and 138,376,144 shares outstanding at December 31, 2023 and 2022, respectively | 1,387 | 1,400 |
Additional paid-in capital | 2,725,217 | 2,712,316 |
Accumulated deficit | (426,704) | (257,245) |
Total equity | 2,299,900 | 2,456,471 |
Total liabilities and equity | $ 8,069,361 | $ 8,241,513 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Common stock par value | $ 0.01 | $ 0.01 |
Common stock authorized | 500,000,000 | 500,000,000 |
Common stock, shares issued | 138,745,357 | 140,055,714 |
Common stock outstanding | 138,745,357 | 138,376,144 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Revenue | ||||
Interest and related income | $ 697,874 | $ 470,668 | $ 415,263 | |
Less: interest and related expense | 470,512 | 246,937 | 180,589 | |
Net interest income | 227,362 | 223,731 | 234,674 | |
Revenue from real estate owned | 79,190 | 63,470 | 27,984 | |
Total net revenue | 306,552 | 287,201 | 262,658 | |
Expenses | ||||
Management fees - affiliate | 38,153 | 39,461 | 39,135 | |
Incentive fees - affiliate | 1,558 | |||
General and administrative expenses | 16,605 | 18,686 | 12,591 | |
Stock-based compensation expense | 16,599 | 7,457 | 8,812 | |
Real estate owned: | ||||
Operating expenses | 49,502 | 41,982 | 25,081 | |
Interest expense | 23,630 | 14,170 | 15,643 | |
Depreciation and amortization | 9,287 | 8,041 | 7,113 | |
Total expenses | 155,334 | 129,797 | 108,375 | |
Gain (loss) on sale of loan | 575 | 30,090 | (141) | |
Proceeds from interest rate cap | 6,101 | 495 | ||
Unrealized (loss) gain on interest rate cap | (5,157) | 6,042 | ||
Gain on foreclosure of real estate owned | 4,162 | 1,430 | ||
Income from equity method investment | 594 | 2,485 | ||
Gain on extinguishment of debt | 2,217 | |||
Other income | 5,855 | |||
(Provision for) reversal of current expected credit loss reserve | (153,683) | (84,361) | 8,962 | |
Net income | 6,027 | 112,155 | 170,389 | |
Net income (loss) attributable to non-controlling interests | 91 | (164) | ||
Net income attributable to preferred stock | 16 | |||
Net income attributable to common stock | $ 6,027 | $ 112,064 | $ 170,537 | |
Net income per share of common stock: | ||||
Basic | $ 0.02 | $ 0.79 | $ 1.27 | |
Diluted | $ 0.02 | $ 0.79 | $ 1.27 | |
Weighted average shares of common stock outstanding: | ||||
Basic | [1] | 138,617,043 | 139,306,311 | 134,539,645 |
Diluted | [1] | 138,617,043 | 139,306,311 | 134,539,645 |
[1] Amounts as of December 31, 2023, 2022, and 2021 include 41,780 , 6,850 , and 0 fully vested RSUs, respectively. |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) $ in Thousands | Total | Cumulative Effect Period of Adoption Adjustment [Member] | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings | Retained Earnings Cumulative Effect Period of Adoption Adjustment [Member] | Noncontrolling Interest | Redeemable Common Stock [Member] | Redeemable Common Stock [Member] Cumulative Effect Period of Adoption Adjustment [Member] |
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) | |||||||||
Repurchased shares | (3,602) | (3,602) | ||||||||
Repurchase of common stock | (215,626) | |||||||||
Offering costs | (11,824) | (11,824) | (14) | |||||||
Accretion of redeemable common stock | (1) | (1) | 1 | |||||||
Contributions from non-controlling interests | 2,514 | 2,514 | ||||||||
Stock-based compensation expense | 2,929 | 2,929 | ||||||||
Dividends declared | (194,961) | $ (16) | 194,945 | (8,214) | ||||||
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 | 139,840,088 | |||||||||
Repurchased shares | (21,398) | (21,398) | ||||||||
Repurchase of common stock | (1,463,944) | |||||||||
Offering costs | (30) | (30) | ||||||||
Contributions from non-controlling interests | 906 | 906 | ||||||||
Stock-based compensation expense | 7,554 | 7,554 | ||||||||
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 | 138,376,144 | |||||||||
Retirement of treasury shares | $ (17) | 17 | ||||||||
Repurchase of common stock | 0 | |||||||||
Stock-based compensation expense | 16,785 | $ 4 | 16,781 | |||||||
Stock-based compensation expense, Shares | 369,213 | |||||||||
Settlement of vested RSUs in cash | (3,897) | (3,897) | ||||||||
Dividends declared | 175,486 | 175,486 | ||||||||
Net Income (Loss) | 6,027 | 6,027 | ||||||||
Balance at Dec. 31, 2023 | $ 2,299,900 | $ 1,387 | $ 2,725,217 | $ (426,704) | ||||||
Balance (in shares) at Dec. 31, 2023 | 138,745,357 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities | |||
Net income | $ 6,027 | $ 112,155 | $ 170,389 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Accretion of origination fees on loans receivable | (22,809) | (24,763) | (25,237) |
Accretion of origination fees on interests in loans receivable | (204) | (1,250) | |
Amortization of deferred financing costs | 22,974 | 20,454 | 21,307 |
Non-cash stock-based compensation expense | 16,781 | 7,554 | 8,812 |
Depreciation and amortization on real estate owned and in-place lease values | 9,287 | 8,041 | 7,113 |
Amortization of above and below market lease values, net | 708 | ||
Other income | (5,855) | ||
Unrealized loss (gain) on interest rate cap | 5,157 | (6,042) | |
Income from equity method investment | (594) | (2,485) | |
Distribution from equity method investment | 816 | ||
Gain on extinguishment of debt | (2,217) | ||
(Gain) loss on sale of loan | (575) | (30,090) | 141 |
Gain on foreclosure of real estate owned | (4,162) | (1,430) | |
Non-cash advances on loans receivable in lieu of interest | (63,632) | (78,452) | (69,291) |
Non-cash advances on interests in loans receivable in lieu of interest | (2,427) | (18,733) | |
Non-cash advances on secured financings in lieu of interest | 3,858 | 529 | 18,134 |
Repayment of non-cash advances on loans receivable in lieu of interest | 23,910 | 21,609 | 126,865 |
Repayment of non-cash advances on interests in loans receivable in lieu of interest | 13,178 | 27,903 | |
Repayment of non-cash advances on secured financings in lieu of interest | (40,556) | ||
Provision for (reversal of) current expected credit loss reserve | 153,683 | 84,361 | (8,962) |
Changes in operating assets and liabilities: | |||
Other assets | (36,140) | (25,757) | (602) |
Other liabilities | (564) | 12,602 | 4,862 |
Management fee payable - affiliate | (552) | (51) | 134 |
Incentive fee payable - affiliate | (187) | ||
Net cash provided by operating activities | 111,140 | 111,028 | 213,557 |
Cash flows from investing activities | |||
Loan originations, acquisitions and advances, net of fees | (769,710) | (2,597,799) | (2,924,699) |
Advances of interests in loans receivable | (14,653) | (101,767) | |
Repayments of loans receivable | 550,060 | 1,539,364 | 2,312,184 |
Repayments of interests in loans receivable | 165,468 | 269,988 | |
Proceeds from sales of loans receivable | 186,683 | 132,151 | 48,006 |
Extension and exit fees received from loans receivable | 2,492 | 6,625 | 9,269 |
Extension and exit fees received from interests in loans receivable | 502 | 265 | |
Deconsolidation of subsidiary | (515) | ||
Cash, cash equivalents and restricted cash acquired from foreclosure of properties | 256 | 9,580 | |
Payment of transaction costs from foreclosure and assignment-in-lieu of foreclosure | (7,024) | (11,463) | |
Reserves and deposits held for loans receivable | (1) | (2,102) | 15,441 |
Capital expenditures on real estate owned | (2,093) | (2,343) | |
Net cash used in investing activities | (39,337) | (773,302) | (373,196) |
Cash flows from financing activities | |||
Proceeds from issuance of common stock | 103,040 | ||
Offering costs | (300) | (13,068) | |
Repurchase of common stock | (21,398) | (3,602) | |
Redemption of preferred stock | (125) | ||
Settlement of vested RSUs in cash | (3,897) | ||
Contributions from non-controlling interests | 906 | 2,514 | |
Dividends paid | (192,159) | (208,090) | (204,942) |
Proceeds from secured financings | 1,027,847 | 2,248,013 | 1,997,562 |
Payment of deferred financing costs | (13,511) | (24,104) | (22,652) |
Payment of exit fees on secured financings | (13) | (864) | |
Repayments of secured financings | (996,404) | (1,311,103) | (1,779,225) |
Repayments of secured term loan | (26,936) | (7,627) | (5,837) |
Repayments of debt related to real estate owned | (10,000) | ||
Net cash (used in) provided by financing activities | (205,073) | 676,297 | 62,801 |
Net (decrease) increase in cash, cash equivalents and restricted cash | (133,270) | 14,023 | (96,838) |
Cash, cash equivalents and restricted cash, beginning of period | 348,159 | 334,136 | 430,974 |
Cash, cash equivalents and restricted cash, end of period | 214,889 | 348,159 | 334,136 |
Cash and cash equivalents, end of period | 187,301 | 306,456 | 310,194 |
Restricted cash, end of period | 27,588 | 41,703 | 23,942 |
Supplemental disclosure of cash flow information: | |||
Cash paid for interest | 465,911 | 227,631 | 158,729 |
Supplemental disclosure of non-cash investing and financing activities: | |||
Accrued dividends | 35,328 | 52,001 | 51,741 |
Loan principal payments held by servicer | 11,000 | 154,600 | |
Accrued deferred financing costs | 3,750 | 6,250 | |
Accrued loans receivable held-for-investment extension fees | 341 | ||
Deposits applied against sale proceeds | 14,761 | ||
Accrued offering costs | 270 | ||
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 | ||
Real estate acquired in foreclosure and assignment-in-lieu of foreclosure | 128,563 | 414,000 | |
Lease intangibles, net acquired in assignment-in-lieu of foreclosure | 20,080 | ||
Working capital acquired in foreclosure and assignment-in-lieu of foreclosure | (6,623) | (18,546) | |
Settlement of loans receivable in foreclosure and assignment-in-lieu of foreclosure | $ (208,797) | (103,901) | |
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; equity | $ 138,081 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pay vs Performance Disclosure | |||
Net Income (Loss) | $ 6,027 | $ 112,155 | $ 161,161 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 31, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Organization
Organization | 12 Months Ended |
Dec. 31, 2023 | |
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 for further detail. We are externally managed by Claros REIT Management LP (the “Manager”), our affiliate, through a management agreement (the “Management Agreement”) pursuant to which our 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, our Manager is entitled to management fees and, upon the achievement of required performance hurdles, incentive fees. See Note 11 – Related Party Transactions for further detail. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
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 determine when and which variable interest holder, if any, should consolidate the VIE. We do not have any consolidated variable interest entities as of December 31, 2023 and 2022 . 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 the current expected credit loss reserve and the 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 loans. We believe that the carrying values of our loans receivable are reasonable taking into consideration these risks. 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 our 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 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. Loans Receivable Held-for-Sale Loans that we have originated or acquired and for which we have an intent and ability to sell are classified as loans receivable held-for-sale and are reflected on our consolidated balance sheet at the lower of amortized cost or estimated fair value. If the estimated fair value of expected loan proceeds is below the loan’s amortized cost as a result of a diminution in the value of the collateral asset, a specific CECL reserve is recorded and subsequently charged-off. Non-cash Advances in Lieu of Interest We hold certain loans whereby a portion of the loan’s unfunded commitment may be used to satisfy monthly debt service, 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. In either case, repayments of non-cash advances in lieu of interest for both our loans receivable and our financings are reflected in the operating section of our consolidated statements of cash flows. 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. 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 loan 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: 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/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 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. Such analyses are completed and reviewed by asset management personnel and evaluated by senior management on at least a quarterly basis, utilizing 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 relevant market data. We arrive at our general CECL reserve using the Weighted Average Remaining Maturity, or WARM method, which is considered 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 may 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 data from January 1, 1999 through December 31, 2023. We believe this CMBS data is the most relevant, available, and comparable dataset to our portfolio. 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 credit 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 judgment about future events that, while based on the information available to us as of the balance sheet date, are ultimately subjective and uncertain, 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, but are not limited to, 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, but are not limited to, as-is or as-stabilized collateral value, market conditions, industry conditions and sponsor’s financial stability. While evaluating the credit quality of each loan within our portfolio, we assess these quantitative and qualitative factors as a whole and with no pre-prescribed weight on their impact to our determination of a loan’s risk rating. However, based upon the facts and circumstances for each loan and the overall market conditions, we may consider certain previously mentioned factors more or less relevant than others. 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 or 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 credit losses that also conform to ASU 2016-13 and related guidance. For such loans, we would separately measure the specific reserve for each loan by using the estimated fair value of the loan’s collateral. If the estimated 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. Specific reserves are equal to the excess of a loan’s carrying value to the estimated fair value of the collateral, less estimated costs to sell, if recovery of our investment is expected from the sale of the collateral and such costs will reduce amounts recovered by us. If we have determined that a loan or a portion of a loan is uncollectible, we will write off such portion of the loan through an adjustment to our current expected credit loss reserve. 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. See Note 3 - Loan Portfolio - Current Expected Credit Losses for further detail. 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, loans receivable held-for-sale, interests in loans receivable held-for-investment, other assets, other liabilities, dividends payable, management fee payable - affiliate, repurchase agreements, term participations, notes payable, loan participations sold, secured term loans and debt related to real estate owned. The estimated fair value of cash and cash equivalents, restricted cash, loan principal payments held by servicer, other assets (excluding the fair value of our interest rate cap), other liabilities, dividends payable, and management fee payable - affiliate 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 further detail. 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. Restricted Cash Restricted cash includes reserve balances for real estate taxes and capital improvements for our real estate owned hotel portfolio, as well as lockbox accounts held pursuant to the terms of certain financings. Real Estate Owned (and Related Debt) We may assume legal title and/or physical possession of the underlying collateral property of a defaulted loan through foreclosure, a deed-in-lieu of foreclosure, or an assignment-in-lieu of 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 on our consolidated balance sheets. If we intend to market the property for sale in the near subsequent term, the asset is classified as real estate held-for-sale on our consolidated balance sheets. 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 and is recognized in depreciation and amortization expense on our consolidated statements of operations. We account for acquisitions of real estate, including foreclosures, deed-in-lieu of foreclosures, or assignment-in-lieu of foreclosures, in accordance with ASC 805, Business Combinations , which first requires that we determine if the real estate investment is the acquisition of an asset or a business combination. Under this model, we identify and determine the estimated fair value of any assets acquired and liabilities assumed. This generally results in the allocation of the purchase price to the assets acquired and liabilities assumed based on the relative fair values of each respective asset and liability. Assets acquired and liabilities assumed generally include land, building, building improvements, tenant improvements, furniture, fixtures and equipment, mortgages payable, and identified intangible assets and liabilities, which generally consists of above or below market lease values, in-place lease values, and other lease-related values. In estimating fair values for allocating the purchase price of our real estate owned, we may utilize various methods, including a market approach, which considers recent sales of similar properties, adjusted for differences in location and state of the physical asset, or a replacement cost approach, which considers the composition of physical assets acquired, adjusted based on industry standard information and the remaining useful life of the acquired property. In estimating fair values of intangible assets acquired or liabilities assumed, we consider the estimated cost of leasing our real estate owned assuming the property was vacant, the value of the current lease agreements relative to market-rate leases, and the estimation of total lease-up time including lost rents. In-place, above market, and other lease values, net are included within other assets on our consolidated balance sheets. Below market lease values, net, are included within other liabilities on our consolidated balance sheets. Amortization of in-place and other lease values is recognized in depreciation and amortization expense on our consolidated statements of operations. Amortization of above and below market lease values is recognized in revenue from real estate owned on our consolidated statements of operations. 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 and anticipated capital proceeds generated by the sale of the real estate asset. If the sum of such estimated undiscounted cash flows is less than the carrying amount of the real estate asset, an impairment charge is recorded equal to the excess of the carrying value of the real estate asset over its estimated fair value. When determining the estimated fair value of a real estate asset, we make certain assumptions including 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 assets through December 31, 2023. Debt assumed in a foreclosure, deed-in-lieu of foreclosure, or assignment-in-lieu of foreclosure of real estate is recorded at its estimated fair value at the time of the acquisition and is subsequently presented net of unamortized deferred financing costs. As of December 31, 2023 , 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 statements 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 through December 31, 2023 . Derivative Financial Instruments In the normal course of business, we are exposed to the effect of interest rate changes and may undertake one or more strategies to limit these risks through the use of derivatives. We may use derivatives to reduce the impact that changes in interest rates will have on our floating rate assets and floating rate liabilities. Such derivatives may consist of interest rate swaps, interest rate caps, collars, and floors. We recognize derivatives on our 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 an unrealized gain or loss on interest rate cap in our consolidated statements of operations. Payments received from our counterparties in connection with our derivative are recognized as proceeds from interest rate cap on our consolidated statements of operations. Other Assets Other assets generally include interest receivable, miscellaneous receivables, prepaid expenses, deferred tax asset (net of any valuation allowance), deposits funded relating to unclosed transactions, deferred financing costs, net related to certain secured financings, derivative financial instruments, and certain lease intangible assets, net. 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 our repurchase agreements, term participation facility, and short-term funding facility. These costs are amortized as interest expense using the straight-line method over the contractual term of the repurchase agreements, the contractual term of the short-term funding facility, or the contractual term of the collateral asset for the term participation facility, which may include fees paid to the financing counterparty when financing a specific asset. 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 respective 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 based on whether (i) the financial asset was legally isolated, (ii) control of the financial asset has been transferred to the transferee, (iii) the transfer imposed any condition that would constrain the transferee from pledging the financial asset received, and (iv) we have continuing involvement with the transferred financial asset. Repurchase Agreements We finance certain of our loans receivable using repurchase agreements, whereby an asset is sold to a counterparty to be repurchased at a later date at a predetermined price. Such arrangements are accounted for as secured financings under GAAP and are presented as a liability on our consolidated balance sheets. Prior to repurchase, interest is incurred to the counterparty based upon the sales price and a predetermined interest rate. Borrowings under the repurchase agreements are partially recourse to us. Term Participation Facility We finance certain of our loans receivable through selling a senior interest to a counterparty. The term participation facility allows us to finance additional loans through a specified date. Such arrangements are accounted for as secured financings under GAAP and are presented as a liability on our consolidated balance sheets. Borrowings under the term participation facility are partially recourse to us. Loan Participations Sold, Net We finance certain of our loans via the sale of a participation in such loan to a counterparty. However, we present the loan participation sold as a liability, net of any unamortized deferred financing costs on our consolidated balance sheets when the arrangement does not qualify as a sale under GAAP. Other than amounts guaranteed by us, these loan participations are non-recourse. Notes Payable, Net We finance certain of our loans receivable using direct financing, collateralized by the loans receivable, which are presented as liability net of any unamortized deferred financing costs on our consolidated balance sheets. Other than amounts guaranteed by us, borrowings under notes payable are non-recourse. Secured Term Loan, Net Our secured term loan is collateralized by a pledge of equity in certain subsidiaries and their related assets and is presented on our consolidated balance sheets net of any unamortized original issue discount. Transaction expenses incurred in connection with our secured term loan are deferred and recognized as interest expense over the life of the loan using the effective interest method. Other Liabilities Other liabilities include interest payable, accrued expenses, our general CECL reserve related to our unfunded loan commitments, reserves and deposits held for loans receivable, and below market lease values, net. Revenue Recognition Interest income from loans receivable is recorded on the accrual basis based on the unpaid principal balance and the contractual terms of the loans. Fees, premiums, discounts and direct costs associated with these loans are initially deferred and recognized as an adjustment to unpaid principal balance until the loan is advanced and are 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/or 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, but are not limited to, our assessment of the underlying collateral value, delinquency in excess of 90 days, and overall market conditions. While on non-accrual status, based on our estimation as to collectability of principal, loans are either accounted for on a cash basis, where interest income is recognized only upon actual receipt of cash, or on a cost-recovery basis, where all cash receipts reduce a loan’s carrying value. If and when a loan is brought back into compliance with its contractual terms, and our Manager has determined that the borrower has demonstrated an ability and willingness to continue to make contractually required payments related to the loan, we resume accrual of interest. Revenue from real estate owned represents revenues associated with the operations of our hotel portfolio and mixed-use property classified as real estate owned. Revenue from the operations of the hotel portfolio is recognized when guestrooms are occupied, services have been rendered or fees have been earned. Hotel revenues consist of room sales, food and beverage sales and other hotel revenues and are recorded net of any discounts, sales and other taxes collected from customers. In accordance with ASC 606, Revenue from Contracts with Customers , revenue from our hotel portfolio 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 operations of our mixed-use property is derived from lease agreements with tenants, which we account for under ASC 842, Leases. Such lease agreements generally provide for fixed rent payments, which we recognize on a straight-line basis over the lease term, and variable rent payments, including reimbursement of certain operating expenses and miscellaneous fees, which we recognize when earned. These reimbursements represent revenue attributable to non-lease components for which the timing and pattern of recognition is the same for lease components. We use the practical expedient, which allows us to account for lease and non-lease components as a single component for all classes of underlying assets. We periodically evaluate the collectability of tenant receivables required under the lease agreements. If we determine that collectability is not probable, we reverse any difference between revenue recognized to date and payments that have been collected from the tenant to date as a current period adjustment to revenue from real estate owned |
Loan Portfolio
Loan Portfolio | 12 Months Ended |
Dec. 31, 2023 | |
Receivables [Abstract] | |
Loan Portfolio | Note 3. Loan Portfolio Loans Receivable Our loan portfolio as of December 31, 2023 was comprised of the following loans ($ in thousands, except for number of loans): Number of Loan (1) Unpaid Principal Balance Carrying (2) Weighted Average Spread (3) Weighted Average Interest Rate (4) Loans receivable held-for-investment Variable: Senior loans (5) 60 $ 7,952,806 $ 6,875,894 $ 6,779,899 + 3.87% 8.67 % Subordinate loans 1 30,200 30,200 30,313 + 12.86% 18.21 % 61 7,983,006 6,906,094 6,810,212 + 3.91% 8.71 % Fixed: Senior loans (5) 2 12,544 12,544 12,767 N/A 8.49 % Subordinate loans 2 125,886 125,886 124,817 N/A 8.44 % 4 138,430 138,430 137,584 8.44 % Total/Weighted Average 65 $ 8,121,436 $ 7,044,524 $ 6,947,796 N/A 9.00 % General CECL reserve ( 70,371 ) Loans receivable held-for-investment, net $ 6,877,425 (1) Loan commitment represents principal outstanding plus remaining unfunded loan commitments. (2) Net of specific CECL reserves of $ 72.6 million . (3) The weighted average spread is expressed as a spread over the relevant floating benchmark rates. One-month term Secured Overnight Financing Rate (“SOFR”) as of December 31, 2023 was 5.35 % . Weighted average is based on outstanding principal as of December 31, 2023 . 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 floating benchmark rate (if applicable), including SOFR floors (if applicable). Weighted average is based on outstanding principal as of December 31, 2023 and includes loans on non-accrual status. For loans placed on non-accrual, the interest rate used in calculating the weighted average interest rate is 0 %. (5) Senior loans include senior mortgages and similar credit quality loans, including related contiguous subordinate loans (if any), and pari passu participations in senior mortgage loans. During the year ended December 31, 2023 , we acquired the senior mortgage for a subordinate loan with a then unpaid principal balance of $ 32.9 million at December 31, 2022 and now classify the subordinate loan as a senior loan. Our loan portfolio as of December 31, 2022 was comprised of the following loans ($ in thousands, except for number of loans): Number of Loan (1) Unpaid Principal Carrying (2) Weighted Average Spread (3) Weighted Average Interest Rate (4) Loans receivable held-for-investment 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 N/A 8.50 % Subordinate loans 2 125,927 125,927 125,668 N/A 8.49 % 4 149,300 149,300 149,263 8.49 % Total/Weighted Average 77 $ 9,433,951 $ 7,538,525 $ 7,428,774 N/A 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 reserves of $ 60.3 million. (3) The weighted average is expressed as a spread over the relevant floating benchmark rates. One-month London Interbank Offered Rate (“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 interest rate is 0 %. (5) Senior loans include senior mortgages and similar credit quality loans, including related contiguous subordinate loans (if any), and pari passu participations in senior mortgage loans. Activity relating to our loans receivable held-for-investment for the years ended December 31, 2023 and 2022 is as follows ($ in thousands): Unpaid Principal Balance Deferred Fees Specific CECL Reserve Carrying Value (1) Balance at December 31, 2022 $ 7,538,525 $ ( 49,451 ) $ ( 60,300 ) $ 7,428,774 Initial funding of new loan originations and acquisitions 101,059 - - 101,059 Advances on existing loans 668,651 - - 668,651 Non-cash advances in lieu of interest 61,699 1,933 - 63,632 Origination fees, extension fees and exit fees (2) - ( 2,833 ) - ( 2,833 ) Repayments of loans receivable ( 561,060 ) - - ( 561,060 ) Repayments of non-cash advances in lieu of interest ( 23,910 ) - - ( 23,910 ) Accretion of fees - 22,809 - 22,809 Specific CECL reserve - - ( 159,648 ) ( 159,648 ) Sales of loans receivable ( 260,110 ) 1,045 72,958 ( 186,107 ) Transfer to real estate owned (See Note 5) ( 208,797 ) - 66,935 ( 141,862 ) Transfer to loans held-for-sale ( 271,533 ) 2,356 7,468 ( 261,709 ) Balance at December 31, 2023 $ 7,044,524 $ ( 24,141 ) $ ( 72,587 ) $ 6,947,796 General CECL reserve ( 70,371 ) Carrying Value $ 6,877,425 (1) Balance at December 31, 2022 does not include general CECL reserve. (2) Includes $ 341,000 of extension fees earned prior to December 31, 2023 which were received in January 2024. 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 Specific CECL reserve - - ( 65,494 ) ( 65,494 ) Sale of loan receivable ( 146,912 ) - - ( 146,912 ) Gain (loss) on sale of loans receivable 30,892 ( 191 ) - 30,701 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. During the three months ended September 30, 2023, we sold a senior loan secured by a hospitality property in Austin, TX, with a carrying value of $ 121.9 million and an unpaid principal balance of $ 122.5 million, resulting in gross proceeds of $ 122.5 million and a realized gain of $ 0.6 million. Prior to the sale, the loan was ascribed a risk rating of 3. The financial asset was legally isolated, control of the financial asset has been transferred to the transferee, the transfer imposed no condition that would constrain the transferee from pledging the financial asset received, and we have no continuing involvement with the transferred financial asset. We have determined the transaction constituted a sale. During the three months ended September 30, 2023, we sold a senior loan with a carrying value prior to any specific CECL reserves of $ 137.2 million and an unpaid principal balance of $ 137.6 million, resulting in gross proceeds of $ 65.0 million and a principal charge-off of $ 73.0 million. The loan, which was comprised of a portfolio of uncrossed loans, was collateralized by a portfolio of multifamily properties located in San Francisco, CA. Prior to this sale, we had recorded a $ 37.1 million specific CECL reserve against this loan based upon the estimated fair value of the loan’s collateral portfolio. The $ 73.0 million principal charge-off follows the recognition of an incremental specific CECL reserve of $ 35.9 million. During 2023 and through the date of sale, this loan was ascribed a risk rating of 5, was on non-accrual status, and we received $ 1.1 million which was treated as a reduction of our carrying value. The financial asset was legally isolated, control of the financial asset has been transferred to the transferee and the transfer imposed no condition that would constrain the transferee from pledging the financial asset received. Concurrent with the sale, we entered into an agreement with the transferee which provides for a share of cash flows from the senior loan upon the transferee meeting certain financial metrics. As of December 31, 2023, we have not recognized any value to this interest on our consolidated financial statements. We have obtained a true-sale-at-law opinion and have determined the transaction constituted a sale. Through CMTG/TT, a previously consolidated joint venture, we held a 51 % interest in a $ 78.5 million subordinate loan secured by land in New York, NY which had been on non-accrual status since October 2021. During the third quarter of 2022, we directly acquired the $ 73.5 million senior position of the loan 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 hold $ 115.3 million of total loan commitments, of which $ 78.5 million has been funded and is included in loans receivable held-for-investment on our consolidated balance sheet as of December 31, 2023 , as well as 51 % of the $ 78.5 million subordinate loan 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. During the three months ended December 31, 2023, we modified a loan with a borrower that was experiencing financial difficulties, resulting in a maturity extension to June 10, 2024 . As of December 31, 2023 , the loan had total commitments and an amortized cost basis of $ 76.4 million, respectively, represents approximately 1.1 % of total loans receivable held-for-investment and is current on interest payments. The loan is considered in determining our general CECL reserve. During the three months ended June 30, 2022, we modified a loan with a borrower that was experiencing financial difficulties, resulting in a decrease in the index rate floor from 1.57 % to 1.00 % and modified extension requirements. During the year ended December 31, 2022, we further modi fied this loan to provide for a maturity extension to September 18, 2023 . As of December 31, 2023 , the loan had total commitments and an amortized cost basis of $ 87.8 million, respectively, represents approximately 1.3 % of total loans receivable held-for-investment, is current on interest payments, and is in maturity default. The loan is considered in determining our general CECL reserve. Our loans receivable held-for-sale as of December 31, 2023 were comprised of the following loans ($ in thousands): Property Type Location Loan Commitment Unpaid Principal Balance Carrying Value Before Principal Charge-Off Principal Held-For-Sale Carrying Value For Sale Condo FL $ 160,000 $ 158,180 $ 157,346 $ - $ 157,346 Multifamily FL 77,115 76,580 76,275 - 76,275 Mixed-Use FL 141,791 36,773 35,556 ( 7,468 ) 28,088 Total $ 378,906 $ 271,533 $ 269,177 $ ( 7,468 ) $ 261,709 In January of 2024, we so ld these three senior loans to an unaffiliated purchaser. The principal charge-off follows the recognition of an incremental specific CECL reserve in the same amount and is allocated and attributable to the construction status of one loan’s collateral asset and such loan’s $ 105.0 million of remaining unfunded commitments. As of September 30, 2023, the loans were ascribed loan risk ratings ranging from 2 to 3. As of December 31, 2023, we determined that these loans met the held-for-sale criteria and were not considered in determining our general CECL reserve. Concentration of Risk The following table presents our loans receivable held-for-investment by loan type, as well as property type and geographic location of the properties collateralizing these loans as of December 31, 2023 and 2022 ($ in thousands): December 31, 2023 December 31, 2022 Loan Type Carrying Value (1) Percentage Carrying Value (2) Percentage Senior loans (3) $ 6,792,666 98 % $ 7,241,159 97 % Subordinate loans 155,130 2 % 187,615 3 % $ 6,947,796 100 % $ 7,428,774 100 % General CECL reserve $ ( 70,371 ) $ ( 68,347 ) $ 6,877,425 $ 7,360,427 Property Type Carrying Value (1) Percentage Carrying Value (2) Percentage Multifamily $ 2,829,436 41 % $ 3,044,892 41 % Hospitality 1,339,067 19 % 1,551,946 20 % Office 961,744 14 % 1,086,018 15 % Mixed-Use (4) 596,919 9 % 615,599 8 % Land 518,252 7 % 426,645 6 % Other 482,582 7 % 269,464 4 % For Sale Condo 219,796 3 % 434,210 6 % $ 6,947,796 100 % $ 7,428,774 100 % General CECL reserve $ ( 70,371 ) $ ( 68,347 ) $ 6,877,425 $ 7,360,427 Geographic Location Carrying Value (1) Percentage Carrying Value (2) Percentage United States West $ 2,518,716 35 % $ 2,450,710 33 % Northeast 1,861,239 27 % 1,999,648 27 % Mid Atlantic 761,588 11 % 809,908 11 % Southeast 735,011 11 % 1,008,590 14 % Southwest 592,324 9 % 694,887 9 % Midwest 477,019 7 % 461,531 6 % Other 1,899 0 % 3,500 0 % $ 6,947,796 100 % $ 7,428,774 100 % General CECL reserve $ ( 70,371 ) $ ( 68,347 ) $ 6,877,425 $ 7,360,427 (1) Net of specific CECL reserves of $ 72.6 million at December 31, 2023 . (2) Net of specific CECL reserves of $ 60.3 million at December 31, 2022 . (3) Senior loans include senior mortgages and similar credit quality loans, including related contiguous subordinate loans (if any) and pari passu participations in senior mortgage loans . (4) At December 31, 2023, mixed-use comprises of 3 % office, 2 % retail, 2 % multifamily, 1 % hospitality, and immaterial amounts of for sale condo . At December 31, 2022 , mixed-use comprises of 4 % office, 2 % retail, 1 % for sale condo, 1 % multifamily, and immaterial amounts of hospitality and signage components. Interest Income and Accretion The following table summarizes our interest and accretion income from our loan portfolio and interest on cash balances for the years ended December 31, 2023, 2022 and 2021 ($ in thousands): Year Ended December 31, 2023 December 31, 2022 December 31, 2021 Coupon interest $ 662,789 $ 441,320 $ 386,731 Accretion of fees 22,809 24,967 26,487 Interest on cash, cash equivalents, and other income 12,276 4,381 2,045 Total interest and related income (1) $ 697,874 $ 470,668 $ 415,263 (1) We recognized $ 1.6 million , $ 5.1 million, and $ 7.3 million in pre-payment penalties and accelerated fees during the years ended December 31, 2023, 2022, and 2021 , 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, including current loan-to-value, debt yield, structure, cash flow volatility, exit plan, current market conditions and sponsorship level. While evaluating the credit quality of each loan within our portfolio, we assess these quantitative and qualitative factors as a whole and with no pre-prescribed weight on their impact to our determination of a loan’s risk rating. However, based upon the facts and circumstances for each loan and the current market conditions, we may consider certain previously mentioned factors more or less relevant than others. 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 our loans receivable held-for-investment based on our internal risk ratings as of December 31, 2023 and 2022 ($ in thousands): December 31, 2023 Risk Rating Number of Loans Unpaid Principal Balance Carrying Value (1) % of Total of Carrying Value 1 - $ - $ - 0 % 2 - - - 0 % 3 45 5,169,731 5,148,188 74 % 4 15 1,536,748 1,534,829 22 % 5 5 338,045 264,779 4 % 65 $ 7,044,524 $ 6,947,796 100 % General CECL reserve ( 70,371 ) $ 6,877,425 (1) Net of specific CECL reserves of $ 72.6 million. 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 reserves of $ 60.3 million. As of December 31, 2023 and 2022 , the average risk rating of our portfolio was 3.3 and 3.2 , respectively, weighted by unpaid principal balance. The following table presents the carrying value and significant characteristics of our loans receivable held-for-investment on non-accrual status as of December 31, 2023 ($ in thousands): Property Type Location Risk Rating Unpaid Principal Balance Carrying Value Before Specific CECL Reserve Specific Net Carrying Value Interest Recognition Method / as of Date Multifamily CA 4 $ 214,479 $ 212,877 $ - $ 212,877 Cost recovery / 10/1/2023 Land (1) VA 5 151,326 151,326 ( 31,226 ) 120,100 Cost recovery / 1/1/2023 Office (2) CA 5 112,442 112,163 ( 20,523 ) 91,640 Cash basis / 4/1/2023 Office CA 4 98,214 97,827 - 97,827 Cost recovery / 9/1/2023 Office GA 5 71,492 71,094 ( 19,954 ) 51,140 Cost recovery / 9/1/2023 Land NY 4 67,000 67,000 - 67,000 Cash basis / 11/1/2021 Other Other 5 1,899 1,899 - 1,899 Cost recovery / 7/1/2020 Other NY 5 886 884 ( 884 ) - Cost recovery / 6/30/2023 Total non-accrual (3)(4) $ 717,738 $ 715,070 $ ( 72,587 ) $ 642,483 (1) During the quarter ended June 30, 2023, this loan was reclassified from a hospitality loan to a land loan based on the state of the collateral. (2) Interest income of $ 0.3 million was recognized on a cash basis for this loan while on non-accrual status during the year ended December 31, 2023 . (3) Loans classified as non-accrual represented 9.2 % of our total loans receivable held-for-investment at December 31, 2023 , based on carrying value net of any specific CECL reserves. Excludes four loans with an aggregate carrying value of $ 490.2 million that are in maturity default but remain on accrual status as the borrower is either current on interest payments or interest is deemed collectible based on the underlying collateral value. Additionally, as of December 31, 2023, we have one loan with an aggregate carrying value of $ 78.4 million that is delinquent on interest payments but remains on accrual status as the interest is deemed collectible based on the underlying collateral value. (4) As of December 31, 2023, loans on non-accrual status had aggregate unfunded loan commitments of $ 75.1 million. The following table presents the carrying value and significant characteristics of our loans receivable held-for-investment 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 Net Carrying Value Interest Recognition Method / as of Date Mixed-Use (1) NY 5 $ 208,797 $ 208,797 $ ( 42,007 ) $ 166,790 Cash basis / 11/1/2022 Multifamily (2) CA 5 138,749 138,329 ( 18,293 ) 120,036 Cost recovery / 12/1/2022 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 (3)(4) $ 418,046 $ 417,626 $ ( 60,300 ) $ 357,326 (1) Interest income of $ 1.1 million was recognized on a cash basis for this loan while on non-accrual status during the year ended December 31, 2022 . On June 30 2023, we obtained legal title to the collateral property of this loan through an assignment-in-lieu of foreclosure. See Note 5 - Real Estate Owned for further detail. (2) During the three months ended September 30, 2023, we sold this loan resulting in gross proceeds of $ 65.0 million and a principal charge-off of $ 73.0 million. (3) Loans classified as non-accrual represented 4.8 % of the total loans receivable held-for-investment at December 31, 2022 , based on carrying value. Excludes three loans with an aggregate carrying value of $ 360.0 million that remain on accrual status but are in maturity default. (4) As of December 31, 2022 , loans on non-accrual status had aggregate unfunded loan commitments of $ 17.5 million. 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 commitments. See Note 2 for further detail of our current expected credit loss reserve methodology. The following table illustrates the changes in the current expected credit loss reserve for our loans receivable held-for-investment for the years ended December 31, 2023 and 2022, respectively ($ in thousands): General CECL Reserve Specific CECL Reserve Loans Receivable Held-for-Investment Interests in Loans Receivable Held-for-Investment Accrued Interest Receivable Unfunded Loan Commitments (1) Total General CECL Reserve Total CECL Reserve 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 reserve, $ 60,300 $ 68,347 $ - $ - $ 17,715 $ 86,062 $ 146,362 Increase (reversal) 159,648 2,024 - - ( 7,989 ) ( 5,965 ) 153,683 Principal charge-offs ( 147,361 ) - - - - - ( 147,361 ) Total reserve, $ 72,587 $ 70,371 $ - $ - $ 9,726 $ 80,097 $ 152,684 Reserve at, (2) 1.0 % 1.2 % 2.2 % (1) The CECL reserve for unfunded commitments is included in other liabilities on the consolidated balance sheets. (2) Represents CECL reserve as a percent of total unpaid principal balance of loans receivable held-for-investment as of December 31, 2023. During the year ended December 31, 2023, we recorded a provision for current expected credit losses of $ 153.7 million , which consisted of a $ 159.6 million increase in our specific CECL reserve prior to principal charge-offs, and a reversal of $ 6.0 million of general CECL reserves. The reversal of general CECL reserves was primarily attributable to the seasoning of our portfolio and a reduction in the size of our loan portfolio subject to determination of the general CECL reserve, partially offset by deteriorating macroeconomic conditions. As of December 31, 2023, our total current expected credit loss reserve was $ 152.7 million. See discussion above regarding principal charge-offs related to loans classified as held-for-sale as of December 31, 2023. During the year ended December 31, 2022, we recorded a provision for current expected credit losses of $ 84.4 million , which consisted of a $ 65.5 million increase in our specific CECL reserve prior to a principal charge-off, and an increase of $ 18.9 million in our general CECL reserve. The increase in the total current expected credit loss reserve was primarily attributable to additional specific CECL reserves, an increase in the size of the portfolio and deteriorating macroeconomic conditions. As of December 31, 2022 , our total current expected credit loss reserve was $ 146.4 million. Specific CECL Reserves The following table presents a summary of our loans receivable held-for-investment with specific CECL reserves as of December 31, 2023 ($ in thousands): Property Type Location Unpaid Principal Balance Carrying Value Before Specific CECL Reserve Specific CECL Reserve Net Carrying Value Land VA $ 151,326 $ 151,326 $ 31,226 $ 120,100 Office CA 112,442 112,163 20,523 91,640 Office GA 71,492 71,094 19,954 51,140 Other NY 886 884 884 - Total $ 336,146 $ 335,467 $ 72,587 $ 262,880 During the three months ended September 30, 2023, we recorded a specific CECL reserve of $ 30.6 million in connection with a senior loan with a borrower that is experiencing financial difficulty and the loan is in maturity default. During the three months ended December 31, 2023 , we recorded additional specific CECL reserves totaling $ 0.6 million as a result of protective advances made during the quarter, resulting in a total specific CECL reserve of $ 31.2 million. The loan is secured by land in Arlington, VA and as of December 31, 2023 , has an unpaid principal balance and carrying value prior to any specific CECL reserve of $ 151.3 million and is in maturity default. Effective January 1, 2023, this loan was placed on non-accrual status. During the three months ended September 30, 2023, we recorded a specific CECL reserve of $ 20.6 million in connection with a senior loan with a borrower that is experiencing financial difficulty. During the three months ended December 31, 2023 , we reduced the specific CECL reserve based on changes to the collateral value, resulting in a total specific CECL reserve of $ 20.5 million. The loan is secured by an office building in San Francisco, CA and a pledge of equity interests therein. As of December 31, 2023 , this loan has an unpaid principal balance and carrying value prior to any specific CECL reserve of $ 112.4 million and $ 112.2 million, respectively, and an initial maturity date of February 13, 2024. Effective September 1, 2023, this loan was placed on non-accrual status. During the three months ended September 30, 2023, we recorded a specific CECL reserve of $ 19.8 million in connection with a senior loan with a borrower that is experiencing financial difficulty. During the three months ended December 31, 2023 , we reduced the specific CECL reserve based on changes to the collateral value, resulting in a total specific CECL reserve of $ 20.0 million. The loan is secured by an office building in Atlanta, GA and a pledge of equity interests therein. As of December 31, 2023 , this loan has an unpaid principal balance and carrying value prior to any specific CECL reserve of $ 71.5 million and $ 71.1 million, respectively, and an initial maturity date of August 27, 2024. Effective September 1, 2023, this loan was placed on non-accrual status. During the three months ended June 30, 2023, we recorded a specific CECL reserve of $ 0.9 million in connection with a subordinate loan with a borrower that is experiencing financial difficulty and the loan is in maturity default. The loan is secured by the equity interests in a retail condo in Brooklyn, NY and, as of December 31, 2023 , has an unpaid principal balance and carrying value prior to any specific CECL reserve of $ 0.9 million and is in maturity default. Effective June 30, 2023, the loan was placed on non-accrual status. During the three months ended December 31, 2022 , we recorded a specific CECL reserve of $ 18.3 million in connection with a senior loan with a borrower that was experiencing financial difficulty. The loan had a then 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. The loan, which was comprised of a portfolio of uncrossed loans, was collateralized by a portfolio of multifamily properties located in San Francisco, CA. During the three months ended June 30, 2023, we recorded an additional specific CECL reserve of $ 18.8 million due to a revised valuation of the collateral properties. During the three months ended September 30, 2023, we sold the loan and recorded a principal charge-off of $ 73.0 million following the recognition of an incremental specific CECL reserve of $ 35.9 million due to a further decline in the value of the collateral properties. Effective December 1, 2022 and through the date of the loan sale, the loan was placed on non-accrual status. Prior to the loan sale and while the loan was on non-accrual status during 2023, we received payments of $ 1.1 million which were treated as a reduction in our carrying value. During the three months ended December 31, 2022 , we recorded a specific CECL reserve of $ 42.0 million in connection with a senior loan with a borrower that was experiencing financial difficulty. The loan was secured by a mixed-use building in New York, NY and a pledge of equity interests therein 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. On June 30, 2023, we obtained legal title to the collateral through an assignment-in-lieu of foreclosure and during the three months ended June 30, 2023 we recorded an additional specific CECL reserve of $ 24.9 million prior to a principal charge-off of $ 66.9 million. See Note 5 - Real Estate Owned for further detail. Effective November 1, 2022 and through the date of the assignment-in-lieu of foreclosure, this loan was on placed non-accrual status. Prior to obtaining legal title to the collateral and while the loan was on non-accrual status during 2023, we recognized $ 8.3 million of interest income. 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 used to determine specific CECL reserves as of December 31, 2023 include assumptions of property specific cash flows over estimated h olding periods, assumptions of property redevelopment costs, discount rates ranging from 7.5 % to 9.5 %, and market and terminal capitalization rates ranging from 6.0 % to 8.3 %. These assump tions are based upon the nature of the properties, recent sales and lease comparables, and anticipated real estate and capital market conditions. Our primary credit quality indicator for our current loan portfolio is our internal risk rating, which is discussed in detail above. The following table presents the carrying value of our loans receivable held-for-investment as of December 31, 2023 by year of origination and risk rating ($ in thousands): Carrying Value by Origination Year as of December 31, 2023 Risk Rating Number of Loans Carrying Value (1) 2023 2022 2021 2020 2019 2018 1 - $ - $ - $ - $ - $ - $ - $ - 2 - - - - - - - - 3 45 5,148,188 100,886 2,091,992 1,483,191 - 1,023,046 449,073 4 15 1,534,829 - 498,306 165,266 87,750 513,629 269,878 5 5 264,779 - - 51,140 91,640 1,899 120,100 65 $ 6,947,796 $ 100,886 $ 2,590,298 $ 1,699,597 $ 179,390 $ 1,538,574 $ 839,051 Charge-Offs (2) $ - $ - $ - $ 7,468 $ - $ 72,958 $ 66,935 (1) Net of specific CECL reserves of $ 72.6 million. (2) Principal charge-offs recognized in connection with an anticipated sale of three senior loans receivable as of December 31, 2023 , a sale of a senior loan receivable during the three months ended September 30, 2023 and an assignment-in-lieu of foreclosure of a mixed-use property during the three months ended June 30, 2023. See prior discussion of loan sales and Note 5 - Real Estate Owned for further detail. The following table details overall statistics for our loans receivable held-for-investment: December 31, 2023 December 31, 2022 Weighted average yield to maturity (1) 9.1 % 8.6 % Weighted average term to initial maturity 1.2 years 1.6 years Weighted average term to fully extended maturity (2) 2.6 years 3.2 years (1) Represents the weighted average annualized yield to initial maturity of each loan, inclusive of coupon, and fees received, based on the applicable floating benchmark rate/floors (if applicable), in place as of December 31, 2023 . For loans placed on non-accrual, the annualized yield to initial maturity used in calculating the weighted average annualized yield to initial maturity is 0 %. (2) Term to fully extended maturity is determined based on the maximum maturity of each of the corresponding loans, assuming all extension options are exercised by the borrower; provided, however, that our loans may be repaid prior to such date. |
Equity Method Investment
Equity Method Investment | 12 Months Ended |
Dec. 31, 2023 | |
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, and we simultaneously 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 - Loan Portfolio for further detail. Effective April 1, 2023, the sole remaining loan held by CMTG/TT was placed on non-accrual status. As of December 31, 2023 , the carrying value of our 51 % equity interest in CMTG/TT approximated $ 42.5 million . |
Real Estate Owned
Real Estate Owned | 12 Months Ended |
Dec. 31, 2023 | |
Real Estate Owned, Disclosure of Detailed Components [Abstract] | |
Real Estate Owned | Note 5. Real Estate Owned On February 8, 2021, we acquired legal title to a portfolio of seven limited service hotels located in New York, NY through a foreclosure. Prior to the foreclosure, the hotel portfolio represented the collateral for a mezzanine loan held by us with an unpaid principal balance of $ 103.9 million and a securitized senior mortgage with an unpaid principal balance of $ 300.0 million held by third parties. Both loans were in default as a result of the borrower failing to pay debt service. Upon foreclosure, we assumed the securitized senior mortgage, which is non-recourse to us, and recorded a gain of $ 1.4 million based upon the hotel portfolio’s $ 414.0 million estimated fair value as determined by a third-party appraisal. The estimated fair value was determined using discount rates ranging from 8.50 % to 8.75 % and a terminal capitalization rate of 6.0 %. In accordance wi th ASC 805, we allocated the estimated fair value of the hotel portfolio $ 123.1 to land and $ 290.9 million to building and improvements. During the year ended December 31, 2023 , we recorded an out-of-period adjustment of $ 4.2 million, representing an over accrual of accounts payable assumed upon the foreclosure of our hotel portfolio and, accordingly, we recorded an adjustment to correct the prior period understatement of the gain on foreclosure of our hotel portfolio. This is reflected as an adjustment to gain on foreclosure on our consolidated statement of operations during the year ended December 31, 2023, and such amount was not deemed to be material to the current period or to any prior periods presented. See Note 6 - Debt Obligations - Debt Related to Real Estate Owned, Net for further detail on the assumed senior securitized mortgage. On June 30, 2023, we acquired legal title to a mixed-use property located in New York, NY and the equity interests therein through an assignment-in-lieu of foreclosure. The mixed-use property contains office, retail, and signage components. Prior to June 30, 2023, the mixed-use property and a pledge of equity interests therein represented the collateral for a senior loan with an unpaid principal balance of $ 208.8 million. During the fourth quarter of 2022, the borrower defaulted on the loan and in anticipation of the assignment-in-lieu of foreclosure, we recorded a specific CECL reserve of $ 42.0 million. Upon acquiring legal title of the collateral, we recorded an additional specific CECL reserve of $ 24.9 million and a principal charge-off of $ 66.9 million, based upon the mixed-use property’s $ 148.2 million estimated fair value as determined by a third-party appraisal and transaction costs of $ 0.4 million. Upon acquiring legal title to this mixed-use property, t he estimated fair value was determined using discount rates ranging from 7.3 % to 7.5 % and market and terminal capitalization rates ranging from 5.0 % to 5.5 %. In accordance with ASC 805, we allocated the estimated fair value of assets acquired and liabilities assumed as follows ($ in thousands): Land $ 112,898 Building 11,181 Capital improvements 70 Tenant improvements 4,414 In-place and other lease values 6,403 Above market lease values 17,886 Below market lease values ( 4,209 ) Total $ 148,643 The following table presents additional detail of the acquired assets and assumed liabilities of our mixed-use property upon assignment-in-lieu of foreclosure ($ in thousands): Assets Cash $ 256 Real estate owned 128,563 In-place, above market, and other lease values (1) 24,289 Other assets 579 153,687 Liabilities Below market lease values (2) 4,209 Other liabilities 7,616 11,825 Assets acquired, net of liabilities assumed $ 141,862 (1) Included within other assets on our consolidated balance sheets. (2) Included within other liabilities on our consolidated balance sheets. The following table presents additional detail related to our real estate owned, net as of December 31, 2023 and 2022 ($ in thousands): December 31, 2023 December 31, 2022 Land $ 235,998 $ 123,100 Building 295,651 284,400 Capital improvements 4,436 2,343 Tenant improvements 4,414 - Furniture, fixtures and equipment 6,500 6,500 Real estate owned 546,999 416,343 Less: accumulated depreciation ( 24,040 ) ( 15,154 ) Real estate owned, net $ 522,959 $ 401,189 Depreciation expense for the years ended December 31, 2023, 2022, and 2021 was $ 8.9 million , $ 8.0 million, and $ 7.1 million, respectively. As of December 31, 2023 and 2022, the aggregate cost basis of our real estate owned for federal income tax purposes was $ 584.6 million and $ 427.3 million, respectively. The following table presents additional detail related to the revenues and operating expenses of our real estate owned properties ($ in thousands): Year Ended December 31, 2023 December 31, 2022 December 31, 2021 Revenue Hotel portfolio $ 75,852 $ 63,470 $ 27,984 Mixed-Use property fixed rents 4,134 - - Mixed-Use property straight-line rent adjustment 87 - - Mixed-Use property variable rents ( 175 ) - - Mixed-Use property amortization of above and below market ( 708 ) - - Total revenue from real estate owned 79,190 63,470 27,984 Operating expenses Hotel portfolio 47,274 41,982 25,081 Mixed-Use property 2,228 - - Total operating expenses from real estate owned $ 49,502 $ 41,982 $ 25,081 Leases The Company has non-cancelable operating leases for space in our mixed-use property. These leases provide for fixed rent payments, which we recognize on a straight-line basis, and variable rent payments, including reimbursement of certain operating expenses and miscellaneous fees, which we recognize when earned. As of December 31, 2023 , the future minimum fixed rents under our non-cancellable leases for each of the next five years and thereafter are as follows ($ in thousands): Year Amount 2024 $ 8,312 2025 8,383 2026 8,415 2027 8,432 2028 8,323 Thereafter 27,462 Total $ 69,327 Lease Intangibles Upon acquisition of our mixed-use property on June 30, 2023, $ 20.1 million of the purchase price was allocated to lease related intangible assets including $ 4.8 million to in-place lease values, $ 17.9 million to above market lease values, $ 4.2 million to below market lease values, and $ 1.6 million to other lease values. As of December 31, 2023, our lease intangibles are comprised of the following ($ in thousands): Intangible Amount In-place, above market, and other lease values $ 24,289 Less: accumulated amortization ( 1,296 ) In-place, above market, and other lease values, net $ 22,993 Below market lease values $ ( 4,209 ) Less: accumulated amortization 188 Below market lease values, net $ ( 4,021 ) Amortization of in-place and other lease values for the year ended December 31, 2023 was $ 0.4 million. Amortization of above market lease values for the year ended December 31, 2023 was $ 0.9 million. Amortization of below market lease values for the year ended December 31, 2023 was $ 0.2 million. We had no lease intangibles during the comparable prior year. As of December 31, 2023, the estimated amortization of these intangibles for the next five years is approximately as follows ($ in thousands): In-place and Other (1) Above Market (2) Below Market (2) 2024 $ 802 $ ( 1,791 ) $ 377 2025 802 ( 1,791 ) 377 2026 802 ( 1,791 ) 377 2027 802 ( 1,791 ) 377 2028 769 ( 1,771 ) 377 Thereafter 2,025 ( 8,056 ) 2,136 Total $ 6,002 $ ( 16,991 ) $ 4,021 (1) Amortization of in-place and other lease values is recognized in depreciation and amortization expense on our consolidated statements of operations. (2) Amortization of above and below market lease values, net is recognized in revenue from real estate owned on our consolidated statements of operations. At acquisition, the weighted average amortization period for in-place and other lease values, above market lease values, and below market lease values was approximately 8.9 years, 10.5 years, and 11.3 years, respectively. |
Debt Obligations
Debt Obligations | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Debt Obligations | Note 6. Debt Obligations As of December 31, 2023 and 2022, we financed certain of our loans receivable using repurchase agreements, a term participation facility, the sale of loan participations, and notes payable. Further, we have a secured term loan and debt related to real estate owned. The financings bear interest at a rate equal to SOFR plus a credit spread or at a fixed rate. The following table summarizes our financings as of December 31, 2023 and 2022 ($ in thousands): December 31, 2023 December 31, 2022 Capacity Borrowing Outstanding Weighted (1) Capacity Borrowing Outstanding Weighted (1) Repurchase agreements and term (2) $ 5,709,907 $ 4,271,112 + 2.76 % $ 5,700,000 $ 4,012,818 + 2.25 % Repurchase agreements - side car (2)(3) - - - 271,171 211,572 + 4.51 % Loan participations sold 120,634 120,634 + 4.15 % 264,252 264,252 + 3.68 % Notes payable 419,867 286,827 + 3.10 % 495,934 154,629 + 3.09 % Secured term loan 725,452 725,452 + 4.50 % 755,090 755,090 + 4.50 % Debt related to real estate owned 290,000 290,000 + 2.83 % 290,000 290,000 + 2.78 % Total/Weighted Average $ 7,265,860 $ 5,694,025 + 3.03 % $ 7,776,447 $ 5,688,361 + 2.75 % (1) Weighted average spread over the applicable benchmark rate is based on unpaid principal balance. SOFR as of December 31, 2023 was 5.35 % . LIBOR and SOFR as of December 31, 2022 were 4.39 % and 4.36 % , respectively. (2) The repurchase agreements and term participation facility are partially recourse to us. As of December 31, 2023 and December 31, 2022 , the weighted average recourse on both our repurchase agreements and term participation facility was 30 % and 28 %, respectively. (3) On July 28, 2023, the financings which comprised the Repurchase Agreements - Side Car were modified to remove any features that would distinguish them from other financings under the repurchase agreement with JP Morgan Chase Bank, N.A. Subsequently, such financings are presented within the repurchase agreements and term participation facility grouping. Repurchase Agreements and Term Participation Facility Repurchase Agreements The following table summarizes our repurchase agreements by lender as of December 31, 2023 ($ in thousands): Lender Initial Maturity Fully (1) Maximum Capacity Borrowing Undrawn Carrying (2) JP Morgan Chase Bank, N.A. 7/28/2026 7/28/2028 $ 1,905,465 $ 1,672,878 $ 232,587 $ 2,257,442 Morgan Stanley Bank, N.A. 1/26/2024 (3) 1/26/2025 1,000,000 735,393 264,607 1,023,295 Goldman Sachs Bank USA 5/31/2025 (4) 5/31/2027 500,000 175,755 324,245 286,623 Barclays Bank PLC 12/20/2024 12/20/2025 500,000 135,129 364,871 250,823 Deutsche Bank AG, 6/26/2024 6/26/2026 400,000 359,646 40,354 611,741 Wells Fargo Bank, N.A. 9/29/2024 9/29/2026 750,000 726,877 23,123 939,628 Total $ 5,055,465 $ 3,805,678 $ 1,249,787 $ 5,369,552 (1) Facility maturity dates may be extended based on certain conditions being met. (2) Net of specific CECL reserves, if any. (3) On January 26, 2024 we exercised our option to extend the initial maturity of this facility from January 26, 2024 to January 26, 2025 . (4) Assumes as-of-right extension is exercised, subject to meeting prescribed conditions. The following table summarizes our repurchase agreements by lender as of December 31, 2022 ($ in thousands): Lender Initial Maturity Fully (1) Maximum Capacity Borrowing Undrawn Carrying (2) JP Morgan Chase Bank, N.A. - 6/29/2025 6/29/2027 $ 1,500,000 $ 1,272,079 $ 227,921 $ 1,815,531 JP Morgan Chase Bank, N.A. - 5/27/2023 5/27/2024 271,171 211,572 59,599 460,481 Morgan Stanley Bank, N.A. (3) 1/26/2024 1/26/2025 1,000,000 859,624 140,376 1,340,573 Goldman Sachs Bank USA (4) 5/31/2024 5/31/2025 500,000 356,014 143,986 551,091 Barclays Bank PLC 12/20/2024 12/20/2025 500,000 176,384 323,616 269,973 Deutsche Bank AG, 6/26/2023 6/26/2026 400,000 345,583 54,417 591,592 Wells Fargo Bank, N.A. 9/29/2023 9/29/2026 800,000 745,603 54,397 952,845 Total $ 4,971,171 $ 3,966,859 $ 1,004,312 $ 5,982,086 (1) Facility maturity dates may be extended based on certain conditions being met. (2) Net of specific CECL reserves, if any. (3) On January 24, 2023, we exercised our option to extend the initial maturity of this facility from January 26, 2023 to January 26, 2024 . (4) On January 13, 2023, this facility was modified such that the initial maturity was extended from May 31, 2023 to May 31, 2024 . Term Participation Facility On November 4, 2022, we entered into a master participation and administration agreement to finance certain of our mortgage loans. As of December 31, 2023 , the facility had $ 654.4 million in financing commitments of which $ 465.4 million was outstanding. As of December 31, 2022 , the facility had $ 481.4 million in financing commitments of which $ 257.5 million was outstanding. Per the terms of the agreement, on November 4, 2023 , the availability period to pledge loans to this facility expired. The term participation facility will mature five years after the date that the last asset is financed under the facility. As of December 31, 2023 , the maturity date of the facility is October 11, 2028 . Our term participation facility as of December 31, 2023 is summarized as follows (in thousands): Contractual Maturity Date Borrowing Outstanding Carrying Value Carrying Value of Collateral 10/11/2028 $ 465,434 $ 465,434 $ 797,335 Our term participation facility as of December 31, 2022 is 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, 2023 are summarized as follows ($ in thousands): Contractual Maximum Borrowings Outstanding Carrying Carrying (1) 10/18/2024 10/18/2024 $ 100,634 $ 100,508 $ 182,723 12/31/2024 (2) 12/31/2025 20,000 20,000 157,346 Total $ 120,634 $ 120,508 $ 340,069 (1) Includes cash reserve balances, if applicable. (2) In January of 2024 the loan securing this financing, which is classified as held-for-sale as of December 31, 2023 , was sold and the financing was repaid in full. 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. Notes Payable Our notes payable as of December 31, 2023 are summarized as follows ($ in thousands): Contractual Maximum Borrowing Outstanding Carrying Carrying 12/31/2024 (1) 12/31/2025 $ 110,714 $ 110,152 $ 157,346 2/2/2026 2/2/2027 50,418 49,576 61,941 9/2/2026 9/2/2027 46,267 45,063 64,270 11/22/2024 11/24/2026 39,504 39,237 52,662 10/13/2025 10/13/2026 39,924 39,313 65,637 Total $ 286,827 $ 283,341 $ 401,856 (1) In January of 2024 the loan securing this financing, which is classified as held-for-sale as of December 31, 2023, was sold and the financing was repaid in full. 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 11/22/2024 11/24/2026 16,055 15,497 25,403 6/30/2025 6/30/2026 4,777 4,354 16,290 10/13/2025 10/13/2026 1,917 1,145 5,749 9/2/2026 9/2/2027 - ( 1,234 ) ( 1,763 ) Total $ 154,629 $ 149,521 $ 237,711 Secured Term Loan, Net On August 9, 2019, we entered into a $ 450.0 million secured term loan which, on December 1, 2020, 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 further modified our secured term loan to reduce the interest rate to the greater of (i) SOFR plus a 0.10 % credit spread adjustment, and (ii) 0.50 %, plus a credit spread of 4.50 %. Our secured term loan is collateralized by a pledge of equity in certain subsidiaries and their related assets. The secured term loan as of December 31, 2023 is summarized as follows ($ in thousands): Contractual Maturity Date Stated Rate (1) Interest Rate Borrowing Outstanding Carrying Value 8/9/2026 S + 4.50% 9.95 % $ 725,452 $ 712,576 (1) One-month term SOFR at December 31, 2023 was 5.35 % . The secured term loan as of December 31, 2022 is summarized as follows ($ in thousands): Contractual Maturity Date Stated Rate (1) Interest Rate Borrowings 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 is partially amortizing, with principal payments of $ 1.9 million due in quarterly installments. During the year ended December 31, 2023 , we purchased and retired $ 22.0 million of principal of our secured term loan for a price of $ 19.3 million, recognizing a $ 2.2 million gain on extinguishment of debt, inclusive of $ 0.5 million of unamortized deferred financing costs. Debt Related to Real Estate Owned, Net On February 8, 2021 we assumed a $ 300.0 million securitized senior mortgage in connection with a foreclosure of a hotel portfolio, which is non-recourse to us. See Note 5 - Real Estate Owned for further detail. Our debt related to real estate owned as of December 31, 2023 is summarized as follows ($ in thousands): Contractual Maturity Date Stated Rate (1) Net Interest Rate (1) Borrowings Outstanding Carrying Value 2/9/24 (2) S + 2.83 % 5.83 % $ 290,000 $ 289,913 (1) Effective July 1, 2023, interest on our debt related to real estate owned is indexed to SOFR. SOFR at December 31, 2023 was 5.35 % , whi ch exceeded the 3.00 % ceiling provided by our interest rate cap. See Note 7 - Derivatives for further detail. (2) On February 7, 2024, we modified this loan agreement to provide for, among other things, an extension of the contractual maturity date to November 9, 2024 , a $ 10.0 million principal paydown, and partial recourse to us. Concurrent with this modification, we purchased an interest rate cap for $ 0.5 million which provides for a strike rate of 5.00 % through the extended contractual maturity date. 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) LIBOR at December 31, 2022 was 4.39 % , which exceeded the 3.00 % ceiling provided by our interest rate cap. See Note 7 – Derivatives for further detail . Short-Term Funding Facility On June 29, 2022, we entered into a full recourse revolving credit facility with $ 150.0 million in capacity. The facility generally provides interim financing for eligible loans for up to 180 days at an initial advance rate between 55 % to 75 %, which begins to decline after the 90th day. The facility matures on June 29, 2025 and we incur interest at a rate of 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, 2023 and 2022 , we had no outstanding balance on the facility. Interest Expense and Amortization The following table summarizes our interest and amortization expense on secured financings, debt related to real estate owned, and secured term loan for the years ended December 31, 2023, 2022 and 2021 ($ in thousands): Year Ended December 31, December 31, December 31, Interest expense on secured financings $ 376,007 $ 178,036 $ 113,300 Interest expense on secured term loan 72,055 48,756 46,038 Amortization of deferred financing costs 22,450 20,145 21,251 Interest and related expense 470,512 246,937 180,589 Interest expense on debt related to real estate owned (1) 23,630 14,170 15,643 Total interest and related expense $ 494,142 $ 261,107 $ 196,232 (1) Interest expense on debt related to real estate owned includes $ 524,000 , $ 309,000 , and $ 56,000 of amortization of deferred financing costs for the years ended December 31, 2023, 2022, and 2021 , respectively. Financial Covenants Our financing agreements generally contain certain financial covenants. For example, our ratio of earnings before interest, taxes, depreciation, and amortization (“EBITDA”), to interest charges, as defined in the agreements, shall be not less than either 1.3 to 1.0 or 1.5 to 1.0. Further, (i) our tangible net worth, as defined in the agreements, shall not be less than $ 2.06 billion as of each measurement date plus 75 % of proceeds from future equity issuances; (ii) cash liquidity shall not be less than the greater of (x) $ 50 million or (y) 5 % of our recourse indebtedness; and (iii) our indebtedness shall not exceed 77.8 % of our total assets. As of December 31, 2023 and 2022 , we are in compliance with all covenants under our financing agreements. The requirements set forth in (i) through (iii) above are based upon the most restrictive financial covenants in place as of the reporting date. For the quarters ended December 31, 2023 and March 31, 2024, we modified certain of our EBITDA to interest charges covenants to provide for a minimum ratio of 1.3 to 1.0 for such covenants which previously required a minimum ratio of 1.4 to 1.0. Future compliance with our financial covenants is dependent upon the results of our operating activities, our financial condition, and the overall market conditions in which we and our borrowers operate. As market conditions evolve, we may work with our counterparties to request modifications of financial covenants as needed. |
Derivatives
Derivatives | 12 Months Ended |
Dec. 31, 2023 | |
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, a strike rate of 3.00 % 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 5.83 %. 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 $ 0.9 million and $ 6.0 million at December 31, 2023 and 2022, respectively. During the years ended December 31, 2023, 2022, and 2021, we recognized $ 6.1 million, $ 0.5 million, and $ 0 , respectively, of proceeds from interest rate cap. On February 7, 2024, we modified our debt related to real estate owned and concurrently purchased an interest rate cap for $ 0.5 million which provides for a strike rate of 5.00 % through the extended contractual maturity date. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 8. Fair Value Measurements ASC 820, “ Fair Value Measurements 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 $ 0.9 million at December 31, 2023 and $ 6.0 million at December 31, 2022. 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, 2023 Carrying Unpaid Principal Fair Value Hierarchy Level Value Balance Fair Value Level 1 Level 2 Level 3 Loans receivable held-for-investment, net $ 6,877,425 $ 7,044,524 $ 6,875,377 $ - $ - $ 6,875,377 Loans receivable held-for-sale 261,709 264,065 261,709 - - 261,709 Repurchase agreements 3,805,678 3,805,678 3,805,678 - - 3,805,678 Term Participation Facility 465,434 465,434 463,010 - - 463,010 Loan participations sold, net 120,508 120,634 120,000 - - 120,000 Notes payable, net 283,341 286,827 284,904 - - 284,904 Secured term loan, net 712,576 725,452 694,620 - - 694,620 Debt related to real estate owned, net 289,913 290,000 289,422 - - 289,422 December 31, 2022 Carrying Unpaid Principal Fair Value Hierarchy Level Value Balance Fair Value Level 1 Level 2 Level 3 Loans receivable held-for-investment, net $ 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, net 289,389 290,000 281,568 - - 281,568 |
Equity
Equity | 12 Months Ended |
Dec. 31, 2023 | |
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 138,745,357 and 140,055,714 shares of common stock issued and 138,745,357 and 138,376,144 common stock outstanding as of December 31, 2023 and 2022 , respectively. In conjunction with our 10b5-1 Purchase Plan defined below, 1,679,570 shares of common stock were repurchased and subsequently retired and are not available to be reissued. The following table provides a summary of the number of shares of common stock outstanding during the years ended December 31, 2023, 2022, and 2021: Year Ended Common Stock Outstanding December 31, December 31, December 31, Beginning balance 138,376,144 139,840,088 132,848,720 Issuance of common stock - - 5,524,934 Conversion of fully vested RSUs to common stock 369,213 - 1,682,060 Repurchase of common stock - ( 1,463,944 ) ( 215,626 ) Ending balance 138,745,357 138,376,144 139,840,088 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. As of December 31, 2023 and 2022 , there were no preferred shares outstanding. 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 (“Morgan Stanley”), pursuant to which Morgan Stanley, 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 to purchase shares of our common stock on our behalf when the market price per share was below the book value per share of common stock, subject to certain daily limits prescribed by the 10b5-1 Purchase Plan. For the period from December 6, 2021 through October 24, 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 was expended. Dividends The following tables detail our dividend activity for common stock ($ in thousands, except per share data): For the Quarter Ended March 31, 2023 June 30, 2023 September 30, 2023 December 31, 2023 Amount Per Amount Per Amount Per Amount Per Dividends declared - common $ 51,199 $ 0.37 $ 51,203 $ 0.37 $ 34,682 $ 0.25 $ 34,686 $ 0.25 Record Date - common stock March 31, 2023 June 30, 2023 September 29, 2023 December 29, 2023 Payment Date - common stock April 14, 2023 July 14, 2023 October 13, 2023 January 12, 2024 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 $ 51,502 $ 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 |
Earnings per Share
Earnings per Share | 12 Months Ended |
Dec. 31, 2023 | |
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, both distributed and undistributed earnings 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, 2023, 2022 and 2021 we had no dilutive securities. As a result, basic and diluted EPS are the same. The calculation of basic and diluted EPS is as follows ($ in thousands, except for share and per share data): Year Ended December 31, December 31, December 31, Net income attributable to common stockholders $ 6,027 $ 112,064 $ 170,537 Dividends on participating securities (1) ( 3,681 ) ( 2,397 ) - Participating securities ʾ share in earnings - - - Basic earnings $ 2,346 $ 109,667 $ 170,537 Weighted average shares of common stock outstanding, (2) 138,617,043 139,306,311 134,539,645 Net income per share of common stock, basic and diluted $ 0.02 $ 0.79 $ 1.27 (1) For the years ended December 31, 2023, 2022, and 2021, dividends on participating securities ex cludes $ 35,000 , $ 3,600 , and $ 0 of dividends on fully vested RSUs. (2) Amounts as of December 31, 2023, 2022, and 2021 include 41,780 , 6,850 , and 0 fully vested RSUs, respectively. For the years ended December 31, 2023, 2022, and 2021, 2,637,717 , 1,190,126 , and 0 of weighted average unvested RSUs, respectively, were excluded from the calculation of diluted EPS because the effect was anti-dilutive. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 11. Related Party Transactions Our activities are managed by our Manager. Pursuant to the terms of the Management Agreement, our Manager is responsible for originating investment opportunities, providing asset management services and administering our day-to-day operations. Our 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 $ 38,153 $ 39,461 $ 39,135 Incentive fees 1,558 - - Total $ 39,711 $ 39,461 $ 39,135 Management Fees Effective October 1, 2015, our Manager earns a base management fee in an amount equal to 1.50 % per annum of Stockholders’ Equity, as defined in the Management Agreement. Management fees are reduced by our pro rata share of any management fees and incentive fees (if incentive fees are not incurred by us) incurred to our Manager by CMTG/TT. Management fees are paid quarterly, in arrears, and $ 9.3 million, and $ 9.9 million were accrued and were included in management fee payable – affiliate on our consolidated balance sheets at December 31, 2023 and 2022, respectively. On August 2, 2022 our Management Agreement was amended and restated, primarily to provide for reimbursement of allocable costs, including compensation of our 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 Our 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. Incentive fees are reduced by our pro rata share of any incentive fees incurred to our Manager by CMTG/TT. Our 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, as defined in the Management Agreement. There were no accrued incentive fees on our consolidated balance sheets at years ended December 31, 2023 and 2022. Termination Fees If we elect to terminate the Management Agreement, we are required to pay our 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 Our 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 our Manager under the Management Agreement. For the years ended December 31, 2023, 2022, and 2021, we incurred $ 4.1 million, $ 1.3 million, and $ 0 , respectively, of reimbursable expenses incurred on our behalf by our Manager, which are included in general and administrative expenses on our consolidated statements of operations. As of December 31, 2023 and 2022, $ 1.0 million and $ 0.7 million, respectively, of reimbursable expenses incurred on our behalf and due to our Manager are included in other liabilities on our consolidated balance sheets. Loans Receivable Held-for-Investment As of December 31, 2022 , we held a loan with an unpaid principal balance of $ 97.8 million and a loan commitment of $ 141.1 million, whereby the borrower is an affiliate of a shareholder of our common stock who, during the year ended December 31, 2023 , owned approximately 10.9 % of our common stock outstanding. During the three months ended September 30, 2023, the loan with a then unpaid principal balance of $ 113.0 million was repaid in full. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Note 12. Stock-Based Compensation Incentive Award Plan 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 our Manager and its affiliates to those of our stockholders. As of December 31, 2023 , the maximum remaining number of shares that may be issued under the Plan is 4,983,900 shares. On March 30, 2023, the Board granted an aggregate of 1,100,000 time-based RSUs to employees of our Manager or its affiliates, which vest in three equal installments on each of the first, second and third anniversaries of April 1, 2023, subject to the terms of the applicable award agreement. Each RSU was granted with the right to receive dividend equivalents. The fair value of the 1,100,000 RSUs was $ 11.30 per share based on the closing price of our common stock on the date of grant. On June 14, 2022, the Board granted an aggregate of 2,130,000 time-based RSUs to employees of our 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 terms of the applicable award agreement. 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. Deferred Compensation Plan 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. 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 years ended December 31, 2023, 2022, and 2021 , we issued 15,410 , 6,850 , and 0 , respectively, of deferred RSUs in lieu of cash fees to such directors, and recognized a related expense of approximately $ 186,000 , $ 98,000 , and $ 0 , respectively, which is included in general and administrative expenses on our consolidated statements of operations. Non-Employee Director Compensation Program 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 2023, the eligible non-executive members of the Board were granted an aggregate of 58,536 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 58,536 RSUs was determined to be $ 10.25 per share on the grant date based on the closing price of our common stock on such date. In June 2022, the eligible non-executive members of the Board were 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 June 1, 2023, 9,760 of the 29,280 vested RSUs were delivered as shares of our common stock to certain directors. Stock-Based Compensation Expense For the years ended December 31, 2023, 2022, and 2021, we recognized $ 16.6 million , $ 7.5 million , and $ 8.8 million , respectively, of stock-based compensation expense related to the RSUs which is considered a non-cash expense. 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, 2023, total unrecognized compensation expense was $ 28.7 million based on the grant date fair value of RSUs granted. This expense is expected to be recognized over a remaining perio d of 1.8 year s from December 31, 2023. We may allow participants of the Plan to settle their tax liabilities through a reduction of their vested RSU delivery. Such amount will result in a corresponding adjustment to additional paid-in capital and a cash payment to our Manager or its affiliates in order to remit the required statutory tax withholding to each respective taxing authority. Similarly, during the three months ended September 30, 2023, we amended the RSU grant agreements of certain participants with respect to whom neither we nor our Manager or its affiliates had a statutory basis to withhold required tax payments. Such amendments provided for partial cash settlement of fully vested RSUs as of the date of the amendments in order to facilitate the satisfaction by such participants of income tax obligations arising from delivery of common stock to settle vested RSUs. During the three months ended September 30, 2023, we delivered 342,786 shares of common stock for 703,318 vested RSUs and concurrently recorded a $ 3.9 million adjustment to additional paid-in capital on our consolidated statement of changes in equity. There were no deliveries of shares of common stock for vested RSUs in the comparable prior period. The following tables detail the time-based RSU activity during the years ended December 31, 2023 and 2022: Time-based Restricted Performance-based Restricted Number of Restricted Weighted Number of Restricted Weighted Unvested, December 31, 2022 2,159,280 $ 18.74 - $ - Granted 1,167,354 $ 11.25 - $ - Vested ( 749,265 ) $ 18.79 - $ - Forfeited ( 51,167 ) $ 16.52 - $ - Unvested, December 31, 2023 2,526,202 $ 15.31 - $ - 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 - $ - |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
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 (i) distribute at least 90 % of our taxable income, determined without regard to the deduction for dividends paid and excluding any net capital gains, and (ii) 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, 2023, 2022, and 2021. 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 hotel portfolio 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, 2023, 2022, and 2021, we 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, 2023 and 2022 , we did no t have any deferred tax assets or deferred tax liabilities due to a full valuation allowance that was established against our deferred tax assets. The deferred tax asset and valuation allowance at December 31, 2023 and December 31, 2022 were $ 21.7 million and $ 16.6 million, respectively. The components of the deferred tax asset at December 31, 2023 consisted of an investment basis difference in our real estate owned hotel portfolio of approximately $ 4.2 million, a net operating loss carryforward of approximately $ 17.8 million, and net unrealized gain (a deferred tax liability) of approximately $ 0.3 million. The components of the deferred tax asset at December 31, 2022 consisted of an investment basis difference in our real estate owned hotel portfolio 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. 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 operations. As of December 31, 2023 and 2022 , we have no t recorded any amounts for uncertain tax positions. The federal statutory rate for the years ended December 31, 2023, 2022, and 2021 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 allo wance. Our tax returns are subject to audit by taxing authorities. Tax years 2020 and onward remain open to examination by major taxing jurisdictions in which we are subject to taxes. The following table details the income tax treatment for our common stock dividends: Year Ended December 31, 2023 December 31, 2022 December 31, 2021 Ordinary dividends 30.9 % 100.0 % 98.2 % Capital gain dividends 0.0 % 0.0 % 1.8 % Nondividend distributions 69.1 % 0.0 % 0.0 % Total 100.0 % 100.0 % 100.0 % |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023 and 2022 , we contributed $ 163.1 million and $ 163.1 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, 2023 and 2022 , CMTG’s remaining capital commitment to CMTG/TT was $ 72.9 million and $ 72.9 million, respectively. As of December 31, 2023 and 2022, we had aggregate unfunded loan commitments of $ 1.1 billion and $ 1.9 billion, respectively, which amounts will generally be funded to finance construction or leasing related 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 financings were as follows as of December 31, 2023 ($ in thousands): Year Initial Fully Extended 2024 (1)(2) $ 2,560,418 $ 1,203,123 2025 1,751,360 1,203,080 2026 1,382,247 1,907,782 2027 - 1,089,578 2028 - 290,462 Total $ 5,694,025 $ 5,694,025 (1) Includes five loans in maturity default with aggregate associated financings outstanding of $ 250.7 million. Such loans receivable have a corresponding aggregate unpaid principal balance of $ 498.1 million. (2) Includes two loans classified as held-for-sale with aggregate associated financings outstanding of $ 184.2 million. Such loans receivable have a corresponding aggregate unpaid principal balance of $ 234.8 million. In January of 2024, these loans receivable were sold and their associated financings were repaid in full. 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, 2023 | |
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 or events have occurred: 1. In January of 2024, we so ld three senior loans to an unaffiliated purchaser. See Note 3 - Loan Portfolio for further detail. 2. On February 7, 2024, we modified our debt related to real estate owned. See Note 6 - Debt Obligations - Debt Related to Real Estate Owned, Net for further detail. |
Schedule IV - Mortgage Loans on
Schedule IV - Mortgage Loans on Real Estate | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023 ($ in thousands, except for number of loans) Type of Loan Description/Location Number Interest (2) 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 + 3.01 % 2027 I/O N/A $ 401,157 $ 399,441 $ - Senior mortgage loan Multifamily/Northeast + 2.75 % 2026 I/O N/A 390,000 389,508 - Senior mortgage loan Hospitality/Northeast + 6.25 % 2028 I/O N/A 265,000 266,350 - Senior mortgage loan Hospitality/Southeast + 4.91 % 2026 I/O N/A 225,000 224,789 - N/A 1,281,157 1,280,088 - Senior loans less than 3% of the carrying amount of total loans Senior mortgage loans (1) Various 61 Floating: + 2.75 % - 10.50 % 2020 - 2028 I/O N/A 5,878,814 5,774,287 772,864 Fixed: 10.00% - 15.00% Subordinate Loans Subordinate loans less than 3% of the carrying amount of total loans Mezzanine loans Various 3 Floating: 12.86 % 2022 - 2027 I/O N/A 156,086 155,130 886 Fixed: 7.35% - 8.50% Total loans N/A $ 7,316,057 $ 7,209,505 $ 773,750 General CECL reserve N/A N/A $ ( 70,371 ) N/A Total loans after general CECL reserves N/A $ 7,316,057 $ 7,139,134 $ 773,750 (1) Table includes loans receivable classified as held-for-sale as of December 31, 2023 . See Note 3 - Loan Portfolio for further detail. (2) As a spread over one month SOFR. SOFR as of December 31, 2023 was 5.35% . (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 $ 7,021,850 as of December 31, 2023 . (7) Includes specific CECL reserve of $ 72.6 million. Reconciliation of Mortgage Loans on Real Estate (1) ($ in thousands) 2023 2022 (3) Balance at January 1, $ 7,360,427 $ 6,502,145 Additions during period: Fundings on new and existing loans 769,710 2,647,363 Non-cash advances in lieu of interest 63,632 80,878 Accretion of fees 22,809 24,967 Gain on sale of loan - 30,701 Deductions during period: Repayments of loans, including proceeds from loan sales ( 771,077 ) ( 1,810,438 ) Origination fees, extension fees, and exit fees received ( 2,833 ) ( 42,039 ) Transfer to real estate owned ( 141,862 ) - Transfer to loans held-for-sale ( 261,709 ) - Provision for current expected credit losses (2) ( 161,672 ) ( 73,150 ) Balance at December 31, $ 6,877,425 $ 7,360,427 (1) Includes Mortgage and Mezzanine loans. (2) See Note 3 – Loan Portfolio of the consolidated financial statements for information on current expected credit losses. (3) Includes interest in loans receivable held-for-investment. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
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 determine when and which variable interest holder, if any, should consolidate the VIE. We do not have any consolidated variable interest entities as of December 31, 2023 and 2022 . 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 the current expected credit loss reserve and the impairment of certain assets. |
Risks and Uncertainties | 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 loans. We believe that the carrying values of our loans receivable are reasonable taking into consideration these risks. 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 our 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 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. |
Loans Receivable Held-for-Sale | Loans Receivable Held-for-Sale Loans that we have originated or acquired and for which we have an intent and ability to sell are classified as loans receivable held-for-sale and are reflected on our consolidated balance sheet at the lower of amortized cost or estimated fair value. If the estimated fair value of expected loan proceeds is below the loan’s amortized cost as a result of a diminution in the value of the collateral asset, a specific CECL reserve is recorded and subsequently charged-off. |
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 satisfy monthly debt service, 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. In either case, repayments of non-cash advances in lieu of interest for both our loans receivable and our financings are reflected in the operating section of our consolidated statements of cash flows. |
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. 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 loan 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: 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/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 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. Such analyses are completed and reviewed by asset management personnel and evaluated by senior management on at least a quarterly basis, utilizing 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 relevant market data. We arrive at our general CECL reserve using the Weighted Average Remaining Maturity, or WARM method, which is considered 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 may 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 data from January 1, 1999 through December 31, 2023. We believe this CMBS data is the most relevant, available, and comparable dataset to our portfolio. 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 credit 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 judgment about future events that, while based on the information available to us as of the balance sheet date, are ultimately subjective and uncertain, 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, but are not limited to, 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, but are not limited to, as-is or as-stabilized collateral value, market conditions, industry conditions and sponsor’s financial stability. While evaluating the credit quality of each loan within our portfolio, we assess these quantitative and qualitative factors as a whole and with no pre-prescribed weight on their impact to our determination of a loan’s risk rating. However, based upon the facts and circumstances for each loan and the overall market conditions, we may consider certain previously mentioned factors more or less relevant than others. 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 or 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 credit losses that also conform to ASU 2016-13 and related guidance. For such loans, we would separately measure the specific reserve for each loan by using the estimated fair value of the loan’s collateral. If the estimated 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. Specific reserves are equal to the excess of a loan’s carrying value to the estimated fair value of the collateral, less estimated costs to sell, if recovery of our investment is expected from the sale of the collateral and such costs will reduce amounts recovered by us. If we have determined that a loan or a portion of a loan is uncollectible, we will write off such portion of the loan through an adjustment to our current expected credit loss reserve. 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. See Note 3 - Loan Portfolio - Current Expected Credit Losses for further detail. |
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, loans receivable held-for-sale, interests in loans receivable held-for-investment, other assets, other liabilities, dividends payable, management fee payable - affiliate, repurchase agreements, term participations, notes payable, loan participations sold, secured term loans and debt related to real estate owned. The estimated fair value of cash and cash equivalents, restricted cash, loan principal payments held by servicer, other assets (excluding the fair value of our interest rate cap), other liabilities, dividends payable, and management fee payable - affiliate 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 further detail. |
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. |
Restricted Cash | Restricted Cash Restricted cash includes reserve balances for real estate taxes and capital improvements for our real estate owned hotel portfolio, as well as lockbox accounts held pursuant to the terms of certain financings. |
Real Estate Owned (and Related Debt) | Real Estate Owned (and Related Debt) We may assume legal title and/or physical possession of the underlying collateral property of a defaulted loan through foreclosure, a deed-in-lieu of foreclosure, or an assignment-in-lieu of 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 on our consolidated balance sheets. If we intend to market the property for sale in the near subsequent term, the asset is classified as real estate held-for-sale on our consolidated balance sheets. 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 and is recognized in depreciation and amortization expense on our consolidated statements of operations. We account for acquisitions of real estate, including foreclosures, deed-in-lieu of foreclosures, or assignment-in-lieu of foreclosures, in accordance with ASC 805, Business Combinations , which first requires that we determine if the real estate investment is the acquisition of an asset or a business combination. Under this model, we identify and determine the estimated fair value of any assets acquired and liabilities assumed. This generally results in the allocation of the purchase price to the assets acquired and liabilities assumed based on the relative fair values of each respective asset and liability. Assets acquired and liabilities assumed generally include land, building, building improvements, tenant improvements, furniture, fixtures and equipment, mortgages payable, and identified intangible assets and liabilities, which generally consists of above or below market lease values, in-place lease values, and other lease-related values. In estimating fair values for allocating the purchase price of our real estate owned, we may utilize various methods, including a market approach, which considers recent sales of similar properties, adjusted for differences in location and state of the physical asset, or a replacement cost approach, which considers the composition of physical assets acquired, adjusted based on industry standard information and the remaining useful life of the acquired property. In estimating fair values of intangible assets acquired or liabilities assumed, we consider the estimated cost of leasing our real estate owned assuming the property was vacant, the value of the current lease agreements relative to market-rate leases, and the estimation of total lease-up time including lost rents. In-place, above market, and other lease values, net are included within other assets on our consolidated balance sheets. Below market lease values, net, are included within other liabilities on our consolidated balance sheets. Amortization of in-place and other lease values is recognized in depreciation and amortization expense on our consolidated statements of operations. Amortization of above and below market lease values is recognized in revenue from real estate owned on our consolidated statements of operations. 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 and anticipated capital proceeds generated by the sale of the real estate asset. If the sum of such estimated undiscounted cash flows is less than the carrying amount of the real estate asset, an impairment charge is recorded equal to the excess of the carrying value of the real estate asset over its estimated fair value. When determining the estimated fair value of a real estate asset, we make certain assumptions including 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 assets through December 31, 2023. Debt assumed in a foreclosure, deed-in-lieu of foreclosure, or assignment-in-lieu of foreclosure of real estate is recorded at its estimated fair value at the time of the acquisition and is subsequently presented net of unamortized deferred financing costs. As of December 31, 2023 , 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 statements 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 through December 31, 2023 . |
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 one or more strategies to limit these risks through the use of derivatives. We may use derivatives to reduce the impact that changes in interest rates will have on our floating rate assets and floating rate liabilities. Such derivatives may consist of interest rate swaps, interest rate caps, collars, and floors. We recognize derivatives on our 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 an unrealized gain or loss on interest rate cap in our consolidated statements of operations. Payments received from our counterparties in connection with our derivative are recognized as proceeds from interest rate cap on our consolidated statements of operations. |
Other Assets | Other Assets Other assets generally include interest receivable, miscellaneous receivables, prepaid expenses, deferred tax asset (net of any valuation allowance), deposits funded relating to unclosed transactions, deferred financing costs, net related to certain secured financings, derivative financial instruments, and certain lease intangible assets, net. |
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 our repurchase agreements, term participation facility, and short-term funding facility. These costs are amortized as interest expense using the straight-line method over the contractual term of the repurchase agreements, the contractual term of the short-term funding facility, or the contractual term of the collateral asset for the term participation facility, which may include fees paid to the financing counterparty when financing a specific asset. 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 respective 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 based on whether (i) the financial asset was legally isolated, (ii) control of the financial asset has been transferred to the transferee, (iii) the transfer imposed any condition that would constrain the transferee from pledging the financial asset received, and (iv) we have continuing involvement with the transferred financial asset. |
Repurchase Agreements | Repurchase Agreements We finance certain of our loans receivable using repurchase agreements, whereby an asset is sold to a counterparty to be repurchased at a later date at a predetermined price. Such arrangements are accounted for as secured financings under GAAP and are presented as a liability on our consolidated balance sheets. Prior to repurchase, interest is incurred to the counterparty based upon the sales price and a predetermined interest rate. Borrowings under the repurchase agreements are partially recourse to us. |
Term Participation Facility | Term Participation Facility We finance certain of our loans receivable through selling a senior interest to a counterparty. The term participation facility allows us to finance additional loans through a specified date. Such arrangements are accounted for as secured financings under GAAP and are presented as a liability on our consolidated balance sheets. Borrowings under the term participation facility are partially recourse to us. |
Loan Participations Sold, Net | Loan Participations Sold, Net We finance certain of our loans via the sale of a participation in such loan to a counterparty. However, we present the loan participation sold as a liability, net of any unamortized deferred financing costs on our consolidated balance sheets when the arrangement does not qualify as a sale under GAAP. Other than amounts guaranteed by us, these loan participations are non-recourse. |
Notes Payable, Net | Notes Payable, Net We finance certain of our loans receivable using direct financing, collateralized by the loans receivable, which are presented as liability net of any unamortized deferred financing costs on our consolidated balance sheets. Other than amounts guaranteed by us, borrowings under notes payable are non-recourse. |
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 and is presented on our consolidated balance sheets net of any unamortized original issue discount. Transaction expenses incurred in connection with our secured term loan are deferred and recognized as interest expense over the life of the loan using the effective interest method. |
Other Liabilities | Other Liabilities Other liabilities include interest payable, accrued expenses, our general CECL reserve related to our unfunded loan commitments, reserves and deposits held for loans receivable, and below market lease values, net. |
Revenue Recognition | Revenue Recognition Interest income from loans receivable is recorded on the accrual basis based on the unpaid principal balance and the contractual terms of the loans. Fees, premiums, discounts and direct costs associated with these loans are initially deferred and recognized as an adjustment to unpaid principal balance until the loan is advanced and are 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/or 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, but are not limited to, our assessment of the underlying collateral value, delinquency in excess of 90 days, and overall market conditions. While on non-accrual status, based on our estimation as to collectability of principal, loans are either accounted for on a cash basis, where interest income is recognized only upon actual receipt of cash, or on a cost-recovery basis, where all cash receipts reduce a loan’s carrying value. If and when a loan is brought back into compliance with its contractual terms, and our Manager has determined that the borrower has demonstrated an ability and willingness to continue to make contractually required payments related to the loan, we resume accrual of interest. Revenue from real estate owned represents revenues associated with the operations of our hotel portfolio and mixed-use property classified as real estate owned. Revenue from the operations of the hotel portfolio is recognized when guestrooms are occupied, services have been rendered or fees have been earned. Hotel revenues consist of room sales, food and beverage sales and other hotel revenues and are recorded net of any discounts, sales and other taxes collected from customers. In accordance with ASC 606, Revenue from Contracts with Customers , revenue from our hotel portfolio 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 operations of our mixed-use property is derived from lease agreements with tenants, which we account for under ASC 842, Leases. Such lease agreements generally provide for fixed rent payments, which we recognize on a straight-line basis over the lease term, and variable rent payments, including reimbursement of certain operating expenses and miscellaneous fees, which we recognize when earned. These reimbursements represent revenue attributable to non-lease components for which the timing and pattern of recognition is the same for lease components. We use the practical expedient, which allows us to account for lease and non-lease components as a single component for all classes of underlying assets. We periodically evaluate the collectability of tenant receivables required under the lease agreements. If we determine that collectability is not probable, we reverse any difference between revenue recognized to date and payments that have been collected from the tenant to date as a current period adjustment to revenue from real estate owned. |
Stock-Based Compensation Expense | Stock-Based Compensation Expense Stock-based compensation expense consists of both time-based and performance-based awards issued to persons employed by or otherwise associated with our Manager and/or its affiliates. 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. |
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 declared 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. |
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 is classified as temporary equity, 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. At all other times, common stock is classified as equity. Certain of our common stock featured certain redemption rights that were 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 include redeemable common stock. |
Non-Controlling Interests | Non-Controlling Interests The non-controlling interests included on our consolidated balance sheet as of December 31, 2021 represented the 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. 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. See Note 4 - Equity Method Investment for further detail. |
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 equity as a reduction of additional paid-in capital. For the years ended December 31, 2023, 2022, and 2021 , we incurred offering costs of $ 0 , $ 30,000 , and $ 11.8 million, respectively, which have been charged against additional paid-in capital on our consolidated balance sheets. |
Repurchased Shares | Repurchased Shares We account for the repurchases of our common stock based on the settlement date. Payments for common 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, 2023 , all repurchased shares of our common stock have been retired. |
Reportable Segments | Reportable Segments For the year ended December 31, 2023, as a result of obtaining title to an additional real estate owned asset through an assignment-in-lieu of foreclosure and the performance of our real estate owned assets, our Chief Operating Decision Maker determined that we have two operating segments and two reporting segments, with activities related to investing in income-producing loans collateralized by institutional quality commercial real estate and activities related to the operations of our real estate owned assets. See Note 3 - Loan Portfolio for further detail of our loans receivable held-for-investment and Note 5 - Real Estate Owned for further detail of our real estate owned assets. |
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 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. 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 consolidated financial statements. The FASB issued ASU 2023-09, “Improvements to Income Tax Disclosures” (“ASU 2023-09”). The standard provides improvements to income tax disclosure requiring disaggregated information about a reporting entity’s effective tax rate reconciliation as well as information on income taxes paid. The standard is effective for annual periods beginning after December 15, 2024, with early adoption permitted. The adoption of ASU 2023-09 is not expected to have a material impact on our consolidated financial statements. |
Loan Portfolio (Tables)
Loan Portfolio (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Receivables [Abstract] | |
Schedule of Loans and Financing Receivable | Our loan portfolio as of December 31, 2023 was comprised of the following loans ($ in thousands, except for number of loans): Number of Loan (1) Unpaid Principal Balance Carrying (2) Weighted Average Spread (3) Weighted Average Interest Rate (4) Loans receivable held-for-investment Variable: Senior loans (5) 60 $ 7,952,806 $ 6,875,894 $ 6,779,899 + 3.87% 8.67 % Subordinate loans 1 30,200 30,200 30,313 + 12.86% 18.21 % 61 7,983,006 6,906,094 6,810,212 + 3.91% 8.71 % Fixed: Senior loans (5) 2 12,544 12,544 12,767 N/A 8.49 % Subordinate loans 2 125,886 125,886 124,817 N/A 8.44 % 4 138,430 138,430 137,584 8.44 % Total/Weighted Average 65 $ 8,121,436 $ 7,044,524 $ 6,947,796 N/A 9.00 % General CECL reserve ( 70,371 ) Loans receivable held-for-investment, net $ 6,877,425 (1) Loan commitment represents principal outstanding plus remaining unfunded loan commitments. (2) Net of specific CECL reserves of $ 72.6 million . (3) The weighted average spread is expressed as a spread over the relevant floating benchmark rates. One-month term Secured Overnight Financing Rate (“SOFR”) as of December 31, 2023 was 5.35 % . Weighted average is based on outstanding principal as of December 31, 2023 . 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 floating benchmark rate (if applicable), including SOFR floors (if applicable). Weighted average is based on outstanding principal as of December 31, 2023 and includes loans on non-accrual status. For loans placed on non-accrual, the interest rate used in calculating the weighted average interest rate is 0 %. (5) Senior loans include senior mortgages and similar credit quality loans, including related contiguous subordinate loans (if any), and pari passu participations in senior mortgage loans. During the year ended December 31, 2023 , we acquired the senior mortgage for a subordinate loan with a then unpaid principal balance of $ 32.9 million at December 31, 2022 and now classify the subordinate loan as a senior loan. Our loan portfolio as of December 31, 2022 was comprised of the following loans ($ in thousands, except for number of loans): Number of Loan (1) Unpaid Principal Carrying (2) Weighted Average Spread (3) Weighted Average Interest Rate (4) Loans receivable held-for-investment 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 N/A 8.50 % Subordinate loans 2 125,927 125,927 125,668 N/A 8.49 % 4 149,300 149,300 149,263 8.49 % Total/Weighted Average 77 $ 9,433,951 $ 7,538,525 $ 7,428,774 N/A 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 reserves of $ 60.3 million. (3) The weighted average is expressed as a spread over the relevant floating benchmark rates. One-month London Interbank Offered Rate (“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 interest rate is 0 %. (5) Senior loans include senior mortgages and similar credit quality loans, including related contiguous subordinate loans (if any), and pari passu participations in senior mortgage loans. |
Schedule of Loan Receivable Portfolio | Activity relating to our loans receivable held-for-investment for the years ended December 31, 2023 and 2022 is as follows ($ in thousands): Unpaid Principal Balance Deferred Fees Specific CECL Reserve Carrying Value (1) Balance at December 31, 2022 $ 7,538,525 $ ( 49,451 ) $ ( 60,300 ) $ 7,428,774 Initial funding of new loan originations and acquisitions 101,059 - - 101,059 Advances on existing loans 668,651 - - 668,651 Non-cash advances in lieu of interest 61,699 1,933 - 63,632 Origination fees, extension fees and exit fees (2) - ( 2,833 ) - ( 2,833 ) Repayments of loans receivable ( 561,060 ) - - ( 561,060 ) Repayments of non-cash advances in lieu of interest ( 23,910 ) - - ( 23,910 ) Accretion of fees - 22,809 - 22,809 Specific CECL reserve - - ( 159,648 ) ( 159,648 ) Sales of loans receivable ( 260,110 ) 1,045 72,958 ( 186,107 ) Transfer to real estate owned (See Note 5) ( 208,797 ) - 66,935 ( 141,862 ) Transfer to loans held-for-sale ( 271,533 ) 2,356 7,468 ( 261,709 ) Balance at December 31, 2023 $ 7,044,524 $ ( 24,141 ) $ ( 72,587 ) $ 6,947,796 General CECL reserve ( 70,371 ) Carrying Value $ 6,877,425 (1) Balance at December 31, 2022 does not include general CECL reserve. (2) Includes $ 341,000 of extension fees earned prior to December 31, 2023 which were received in January 2024. 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 Specific CECL reserve - - ( 65,494 ) ( 65,494 ) Sale of loan receivable ( 146,912 ) - - ( 146,912 ) Gain (loss) on sale of loans receivable 30,892 ( 191 ) - 30,701 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. Loan Participations Sold Our loan participations sold as of December 31, 2023 are summarized as follows ($ in thousands): Contractual Maximum Borrowings Outstanding Carrying Carrying (1) 10/18/2024 10/18/2024 $ 100,634 $ 100,508 $ 182,723 12/31/2024 (2) 12/31/2025 20,000 20,000 157,346 Total $ 120,634 $ 120,508 $ 340,069 (1) Includes cash reserve balances, if applicable. (2) In January of 2024 the loan securing this financing, which is classified as held-for-sale as of December 31, 2023 , was sold and the financing was repaid in full. 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. |
Schedule of Loans Receivable Held-for-investment by Loan Type | The following table presents our loans receivable held-for-investment by loan type, as well as property type and geographic location of the properties collateralizing these loans as of December 31, 2023 and 2022 ($ in thousands): December 31, 2023 December 31, 2022 Loan Type Carrying Value (1) Percentage Carrying Value (2) Percentage Senior loans (3) $ 6,792,666 98 % $ 7,241,159 97 % Subordinate loans 155,130 2 % 187,615 3 % $ 6,947,796 100 % $ 7,428,774 100 % General CECL reserve $ ( 70,371 ) $ ( 68,347 ) $ 6,877,425 $ 7,360,427 Property Type Carrying Value (1) Percentage Carrying Value (2) Percentage Multifamily $ 2,829,436 41 % $ 3,044,892 41 % Hospitality 1,339,067 19 % 1,551,946 20 % Office 961,744 14 % 1,086,018 15 % Mixed-Use (4) 596,919 9 % 615,599 8 % Land 518,252 7 % 426,645 6 % Other 482,582 7 % 269,464 4 % For Sale Condo 219,796 3 % 434,210 6 % $ 6,947,796 100 % $ 7,428,774 100 % General CECL reserve $ ( 70,371 ) $ ( 68,347 ) $ 6,877,425 $ 7,360,427 Geographic Location Carrying Value (1) Percentage Carrying Value (2) Percentage United States West $ 2,518,716 35 % $ 2,450,710 33 % Northeast 1,861,239 27 % 1,999,648 27 % Mid Atlantic 761,588 11 % 809,908 11 % Southeast 735,011 11 % 1,008,590 14 % Southwest 592,324 9 % 694,887 9 % Midwest 477,019 7 % 461,531 6 % Other 1,899 0 % 3,500 0 % $ 6,947,796 100 % $ 7,428,774 100 % General CECL reserve $ ( 70,371 ) $ ( 68,347 ) $ 6,877,425 $ 7,360,427 (1) Net of specific CECL reserves of $ 72.6 million at December 31, 2023 . (2) Net of specific CECL reserves of $ 60.3 million at December 31, 2022 . (3) Senior loans include senior mortgages and similar credit quality loans, including related contiguous subordinate loans (if any) and pari passu participations in senior mortgage loans . (4) At December 31, 2023, mixed-use comprises of 3 % office, 2 % retail, 2 % multifamily, 1 % hospitality, and immaterial amounts of for sale condo . At December 31, 2022 , mixed-use comprises of 4 % office, 2 % retail, 1 % for sale condo, 1 % multifamily, and immaterial amounts of hospitality and signage components. |
Summarizes of Interest and Accretion Income from Loan Portfolio | The following table summarizes our interest and accretion income from our loan portfolio and interest on cash balances for the years ended December 31, 2023, 2022 and 2021 ($ in thousands): Year Ended December 31, 2023 December 31, 2022 December 31, 2021 Coupon interest $ 662,789 $ 441,320 $ 386,731 Accretion of fees 22,809 24,967 26,487 Interest on cash, cash equivalents, and other income 12,276 4,381 2,045 Total interest and related income (1) $ 697,874 $ 470,668 $ 415,263 (1) We recognized $ 1.6 million , $ 5.1 million, and $ 7.3 million in pre-payment penalties and accelerated fees during the years ended December 31, 2023, 2022, and 2021 , respectively. |
Market Internal Risk Rating Benefit Activity | The following tables allocate the principal balance and carrying value of our loans receivable held-for-investment based on our internal risk ratings as of December 31, 2023 and 2022 ($ in thousands): December 31, 2023 Risk Rating Number of Loans Unpaid Principal Balance Carrying Value (1) % of Total of Carrying Value 1 - $ - $ - 0 % 2 - - - 0 % 3 45 5,169,731 5,148,188 74 % 4 15 1,536,748 1,534,829 22 % 5 5 338,045 264,779 4 % 65 $ 7,044,524 $ 6,947,796 100 % General CECL reserve ( 70,371 ) $ 6,877,425 (1) Net of specific CECL reserves of $ 72.6 million. 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 reserves of $ 60.3 million. |
Summary of Loans Receivable Held-for-investment With Specific CECL Reserves | The following table presents a summary of our loans receivable held-for-investment with specific CECL reserves as of December 31, 2023 ($ in thousands): Property Type Location Unpaid Principal Balance Carrying Value Before Specific CECL Reserve Specific CECL Reserve Net Carrying Value Land VA $ 151,326 $ 151,326 $ 31,226 $ 120,100 Office CA 112,442 112,163 20,523 91,640 Office GA 71,492 71,094 19,954 51,140 Other NY 886 884 884 - Total $ 336,146 $ 335,467 $ 72,587 $ 262,880 |
Summary of Carrying Value and Significant Characteristics of Loans Receivable Held-for-investment on Non-accrual Status | The following table presents the carrying value and significant characteristics of our loans receivable held-for-investment on non-accrual status as of December 31, 2023 ($ in thousands): Property Type Location Risk Rating Unpaid Principal Balance Carrying Value Before Specific CECL Reserve Specific Net Carrying Value Interest Recognition Method / as of Date Multifamily CA 4 $ 214,479 $ 212,877 $ - $ 212,877 Cost recovery / 10/1/2023 Land (1) VA 5 151,326 151,326 ( 31,226 ) 120,100 Cost recovery / 1/1/2023 Office (2) CA 5 112,442 112,163 ( 20,523 ) 91,640 Cash basis / 4/1/2023 Office CA 4 98,214 97,827 - 97,827 Cost recovery / 9/1/2023 Office GA 5 71,492 71,094 ( 19,954 ) 51,140 Cost recovery / 9/1/2023 Land NY 4 67,000 67,000 - 67,000 Cash basis / 11/1/2021 Other Other 5 1,899 1,899 - 1,899 Cost recovery / 7/1/2020 Other NY 5 886 884 ( 884 ) - Cost recovery / 6/30/2023 Total non-accrual (3)(4) $ 717,738 $ 715,070 $ ( 72,587 ) $ 642,483 (1) During the quarter ended June 30, 2023, this loan was reclassified from a hospitality loan to a land loan based on the state of the collateral. (2) Interest income of $ 0.3 million was recognized on a cash basis for this loan while on non-accrual status during the year ended December 31, 2023 . (3) Loans classified as non-accrual represented 9.2 % of our total loans receivable held-for-investment at December 31, 2023 , based on carrying value net of any specific CECL reserves. Excludes four loans with an aggregate carrying value of $ 490.2 million that are in maturity default but remain on accrual status as the borrower is either current on interest payments or interest is deemed collectible based on the underlying collateral value. Additionally, as of December 31, 2023, we have one loan with an aggregate carrying value of $ 78.4 million that is delinquent on interest payments but remains on accrual status as the interest is deemed collectible based on the underlying collateral value. (4) As of December 31, 2023, loans on non-accrual status had aggregate unfunded loan commitments of $ 75.1 million. The following table presents the carrying value and significant characteristics of our loans receivable held-for-investment 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 Net Carrying Value Interest Recognition Method / as of Date Mixed-Use (1) NY 5 $ 208,797 $ 208,797 $ ( 42,007 ) $ 166,790 Cash basis / 11/1/2022 Multifamily (2) CA 5 138,749 138,329 ( 18,293 ) 120,036 Cost recovery / 12/1/2022 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 (3)(4) $ 418,046 $ 417,626 $ ( 60,300 ) $ 357,326 (1) Interest income of $ 1.1 million was recognized on a cash basis for this loan while on non-accrual status during the year ended December 31, 2022 . On June 30 2023, we obtained legal title to the collateral property of this loan through an assignment-in-lieu of foreclosure. See Note 5 - Real Estate Owned for further detail. (2) During the three months ended September 30, 2023, we sold this loan resulting in gross proceeds of $ 65.0 million and a principal charge-off of $ 73.0 million. (3) Loans classified as non-accrual represented 4.8 % of the total loans receivable held-for-investment at December 31, 2022 , based on carrying value. Excludes three loans with an aggregate carrying value of $ 360.0 million that remain on accrual status but are in maturity default. (4) As of December 31, 2022 , loans on non-accrual status had aggregate unfunded loan commitments of $ 17.5 million. |
Schedule of Activity In Allowance For Loan Losses | The following table illustrates the changes in the current expected credit loss reserve for our loans receivable held-for-investment for the years ended December 31, 2023 and 2022, respectively ($ in thousands): General CECL Reserve Specific CECL Reserve Loans Receivable Held-for-Investment Interests in Loans Receivable Held-for-Investment Accrued Interest Receivable Unfunded Loan Commitments (1) Total General CECL Reserve Total CECL Reserve 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 reserve, $ 60,300 $ 68,347 $ - $ - $ 17,715 $ 86,062 $ 146,362 Increase (reversal) 159,648 2,024 - - ( 7,989 ) ( 5,965 ) 153,683 Principal charge-offs ( 147,361 ) - - - - - ( 147,361 ) Total reserve, $ 72,587 $ 70,371 $ - $ - $ 9,726 $ 80,097 $ 152,684 Reserve at, (2) 1.0 % 1.2 % 2.2 % (1) The CECL reserve for unfunded commitments is included in other liabilities on the consolidated balance sheets. (2) Represents CECL reserve as a percent of total unpaid principal balance of loans receivable held-for-investment as of December 31, 2023. |
Schedule of Carrying Value of Loan Portfolio Based on Internal Risk Ratings | Our primary credit quality indicator for our current loan portfolio is our internal risk rating, which is discussed in detail above. The following table presents the carrying value of our loans receivable held-for-investment as of December 31, 2023 by year of origination and risk rating ($ in thousands): Carrying Value by Origination Year as of December 31, 2023 Risk Rating Number of Loans Carrying Value (1) 2023 2022 2021 2020 2019 2018 1 - $ - $ - $ - $ - $ - $ - $ - 2 - - - - - - - - 3 45 5,148,188 100,886 2,091,992 1,483,191 - 1,023,046 449,073 4 15 1,534,829 - 498,306 165,266 87,750 513,629 269,878 5 5 264,779 - - 51,140 91,640 1,899 120,100 65 $ 6,947,796 $ 100,886 $ 2,590,298 $ 1,699,597 $ 179,390 $ 1,538,574 $ 839,051 Charge-Offs (2) $ - $ - $ - $ 7,468 $ - $ 72,958 $ 66,935 (1) Net of specific CECL reserves of $ 72.6 million. (2) Principal charge-offs recognized in connection with an anticipated sale of three senior loans receivable as of December 31, 2023 , a sale of a senior loan receivable during the three months ended September 30, 2023 and an assignment-in-lieu of foreclosure of a mixed-use property during the three months ended June 30, 2023. See prior discussion of loan sales and Note 5 - Real Estate Owned for further detail. |
Schedule of Loans Receivable Held-for-sale | Our loans receivable held-for-sale as of December 31, 2023 were comprised of the following loans ($ in thousands): Property Type Location Loan Commitment Unpaid Principal Balance Carrying Value Before Principal Charge-Off Principal Held-For-Sale Carrying Value For Sale Condo FL $ 160,000 $ 158,180 $ 157,346 $ - $ 157,346 Multifamily FL 77,115 76,580 76,275 - 76,275 Mixed-Use FL 141,791 36,773 35,556 ( 7,468 ) 28,088 Total $ 378,906 $ 271,533 $ 269,177 $ ( 7,468 ) $ 261,709 |
Schedule of Overall Statistics for Loans Receivable and Interests in Loans Receivable Portfolio | The following table details overall statistics for our loans receivable held-for-investment: December 31, 2023 December 31, 2022 Weighted average yield to maturity (1) 9.1 % 8.6 % Weighted average term to initial maturity 1.2 years 1.6 years Weighted average term to fully extended maturity (2) 2.6 years 3.2 years (1) Represents the weighted average annualized yield to initial maturity of each loan, inclusive of coupon, and fees received, based on the applicable floating benchmark rate/floors (if applicable), in place as of December 31, 2023 . For loans placed on non-accrual, the annualized yield to initial maturity used in calculating the weighted average annualized yield to initial maturity is 0 %. (2) Term to fully extended maturity is determined based on the maximum maturity of each of the corresponding loans, assuming all extension options are exercised by the borrower; provided, however, that our loans may be repaid prior to such date. |
Real Estate Owned (Tables)
Real Estate Owned (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Real Estate Owned, Disclosure of Detailed Components [Abstract] | |
Schedule of Allocated Fair Value of Assets Acquired and Liabilities Assumed | In accordance with ASC 805, we allocated the estimated fair value of assets acquired and liabilities assumed as follows ($ in thousands): Land $ 112,898 Building 11,181 Capital improvements 70 Tenant improvements 4,414 In-place and other lease values 6,403 Above market lease values 17,886 Below market lease values ( 4,209 ) Total $ 148,643 |
Schedule of Additional Detail of Acquired Assets and Assumed Liabilities of Our Mixed-Use Property | The following table presents additional detail of the acquired assets and assumed liabilities of our mixed-use property upon assignment-in-lieu of foreclosure ($ in thousands): Assets Cash $ 256 Real estate owned 128,563 In-place, above market, and other lease values (1) 24,289 Other assets 579 153,687 Liabilities Below market lease values (2) 4,209 Other liabilities 7,616 11,825 Assets acquired, net of liabilities assumed $ 141,862 (1) Included within other assets on our consolidated balance sheets. (2) Included within other liabilities on our consolidated balance sheets. |
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, 2023 and 2022 ($ in thousands): December 31, 2023 December 31, 2022 Land $ 235,998 $ 123,100 Building 295,651 284,400 Capital improvements 4,436 2,343 Tenant improvements 4,414 - Furniture, fixtures and equipment 6,500 6,500 Real estate owned 546,999 416,343 Less: accumulated depreciation ( 24,040 ) ( 15,154 ) Real estate owned, net $ 522,959 $ 401,189 |
Schedule of Revenues and Operating Expenses of Real Estate Owned Properties | The following table presents additional detail related to the revenues and operating expenses of our real estate owned properties ($ in thousands): Year Ended December 31, 2023 December 31, 2022 December 31, 2021 Revenue Hotel portfolio $ 75,852 $ 63,470 $ 27,984 Mixed-Use property fixed rents 4,134 - - Mixed-Use property straight-line rent adjustment 87 - - Mixed-Use property variable rents ( 175 ) - - Mixed-Use property amortization of above and below market ( 708 ) - - Total revenue from real estate owned 79,190 63,470 27,984 Operating expenses Hotel portfolio 47,274 41,982 25,081 Mixed-Use property 2,228 - - Total operating expenses from real estate owned $ 49,502 $ 41,982 $ 25,081 |
Schedule of Future Minimum Fixed Rents under Non-Cancellable Leases | the future minimum fixed rents under our non-cancellable leases for each of the next five years and thereafter are as follows ($ in thousands): Year Amount 2024 $ 8,312 2025 8,383 2026 8,415 2027 8,432 2028 8,323 Thereafter 27,462 Total $ 69,327 |
Schedule of Lease Intangibles | As of December 31, 2023, our lease intangibles are comprised of the following ($ in thousands): Intangible Amount In-place, above market, and other lease values $ 24,289 Less: accumulated amortization ( 1,296 ) In-place, above market, and other lease values, net $ 22,993 Below market lease values $ ( 4,209 ) Less: accumulated amortization 188 Below market lease values, net $ ( 4,021 ) |
Estimated Amortization of Intangibles for Next Five Years | As of December 31, 2023, the estimated amortization of these intangibles for the next five years is approximately as follows ($ in thousands): In-place and Other (1) Above Market (2) Below Market (2) 2024 $ 802 $ ( 1,791 ) $ 377 2025 802 ( 1,791 ) 377 2026 802 ( 1,791 ) 377 2027 802 ( 1,791 ) 377 2028 769 ( 1,771 ) 377 Thereafter 2,025 ( 8,056 ) 2,136 Total $ 6,002 $ ( 16,991 ) $ 4,021 (1) Amortization of in-place and other lease values is recognized in depreciation and amortization expense on our consolidated statements of operations. (2) Amortization of above and below market lease values, net is recognized in revenue from real estate owned on our consolidated statements of operations. |
Debt Obligations (Tables)
Debt Obligations (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Summary of Financings | The following table summarizes our financings as of December 31, 2023 and 2022 ($ in thousands): December 31, 2023 December 31, 2022 Capacity Borrowing Outstanding Weighted (1) Capacity Borrowing Outstanding Weighted (1) Repurchase agreements and term (2) $ 5,709,907 $ 4,271,112 + 2.76 % $ 5,700,000 $ 4,012,818 + 2.25 % Repurchase agreements - side car (2)(3) - - - 271,171 211,572 + 4.51 % Loan participations sold 120,634 120,634 + 4.15 % 264,252 264,252 + 3.68 % Notes payable 419,867 286,827 + 3.10 % 495,934 154,629 + 3.09 % Secured term loan 725,452 725,452 + 4.50 % 755,090 755,090 + 4.50 % Debt related to real estate owned 290,000 290,000 + 2.83 % 290,000 290,000 + 2.78 % Total/Weighted Average $ 7,265,860 $ 5,694,025 + 3.03 % $ 7,776,447 $ 5,688,361 + 2.75 % (1) Weighted average spread over the applicable benchmark rate is based on unpaid principal balance. SOFR as of December 31, 2023 was 5.35 % . LIBOR and SOFR as of December 31, 2022 were 4.39 % and 4.36 % , respectively. (2) The repurchase agreements and term participation facility are partially recourse to us. As of December 31, 2023 and December 31, 2022 , the weighted average recourse on both our repurchase agreements and term participation facility was 30 % and 28 %, respectively. (3) On July 28, 2023, the financings which comprised the Repurchase Agreements - Side Car were modified to remove any features that would distinguish them from other financings under the repurchase agreement with JP Morgan Chase Bank, N.A. Subsequently, such financings are presented within the repurchase agreements and term participation facility grouping. |
Summary of Repurchase Agreements | The following table summarizes our repurchase agreements by lender as of December 31, 2023 ($ in thousands): Lender Initial Maturity Fully (1) Maximum Capacity Borrowing Undrawn Carrying (2) JP Morgan Chase Bank, N.A. 7/28/2026 7/28/2028 $ 1,905,465 $ 1,672,878 $ 232,587 $ 2,257,442 Morgan Stanley Bank, N.A. 1/26/2024 (3) 1/26/2025 1,000,000 735,393 264,607 1,023,295 Goldman Sachs Bank USA 5/31/2025 (4) 5/31/2027 500,000 175,755 324,245 286,623 Barclays Bank PLC 12/20/2024 12/20/2025 500,000 135,129 364,871 250,823 Deutsche Bank AG, 6/26/2024 6/26/2026 400,000 359,646 40,354 611,741 Wells Fargo Bank, N.A. 9/29/2024 9/29/2026 750,000 726,877 23,123 939,628 Total $ 5,055,465 $ 3,805,678 $ 1,249,787 $ 5,369,552 (1) Facility maturity dates may be extended based on certain conditions being met. (2) Net of specific CECL reserves, if any. (3) On January 26, 2024 we exercised our option to extend the initial maturity of this facility from January 26, 2024 to January 26, 2025 . (4) Assumes as-of-right extension is exercised, subject to meeting prescribed conditions. The following table summarizes our repurchase agreements by lender as of December 31, 2022 ($ in thousands): Lender Initial Maturity Fully (1) Maximum Capacity Borrowing Undrawn Carrying (2) JP Morgan Chase Bank, N.A. - 6/29/2025 6/29/2027 $ 1,500,000 $ 1,272,079 $ 227,921 $ 1,815,531 JP Morgan Chase Bank, N.A. - 5/27/2023 5/27/2024 271,171 211,572 59,599 460,481 Morgan Stanley Bank, N.A. (3) 1/26/2024 1/26/2025 1,000,000 859,624 140,376 1,340,573 Goldman Sachs Bank USA (4) 5/31/2024 5/31/2025 500,000 356,014 143,986 551,091 Barclays Bank PLC 12/20/2024 12/20/2025 500,000 176,384 323,616 269,973 Deutsche Bank AG, 6/26/2023 6/26/2026 400,000 345,583 54,417 591,592 Wells Fargo Bank, N.A. 9/29/2023 9/29/2026 800,000 745,603 54,397 952,845 Total $ 4,971,171 $ 3,966,859 $ 1,004,312 $ 5,982,086 (1) Facility maturity dates may be extended based on certain conditions being met. (2) Net of specific CECL reserves, if any. (3) On January 24, 2023, we exercised our option to extend the initial maturity of this facility from January 26, 2023 to January 26, 2024 . (4) On January 13, 2023, this facility was modified such that the initial maturity was extended from May 31, 2023 to May 31, 2024 . |
Schedule of Term Participation Facility | Our term participation facility as of December 31, 2023 is summarized as follows (in thousands): Contractual Maturity Date Borrowing Outstanding Carrying Value Carrying Value of Collateral 10/11/2028 $ 465,434 $ 465,434 $ 797,335 Our term participation facility as of December 31, 2022 is 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 our loans receivable held-for-investment for the years ended December 31, 2023 and 2022 is as follows ($ in thousands): Unpaid Principal Balance Deferred Fees Specific CECL Reserve Carrying Value (1) Balance at December 31, 2022 $ 7,538,525 $ ( 49,451 ) $ ( 60,300 ) $ 7,428,774 Initial funding of new loan originations and acquisitions 101,059 - - 101,059 Advances on existing loans 668,651 - - 668,651 Non-cash advances in lieu of interest 61,699 1,933 - 63,632 Origination fees, extension fees and exit fees (2) - ( 2,833 ) - ( 2,833 ) Repayments of loans receivable ( 561,060 ) - - ( 561,060 ) Repayments of non-cash advances in lieu of interest ( 23,910 ) - - ( 23,910 ) Accretion of fees - 22,809 - 22,809 Specific CECL reserve - - ( 159,648 ) ( 159,648 ) Sales of loans receivable ( 260,110 ) 1,045 72,958 ( 186,107 ) Transfer to real estate owned (See Note 5) ( 208,797 ) - 66,935 ( 141,862 ) Transfer to loans held-for-sale ( 271,533 ) 2,356 7,468 ( 261,709 ) Balance at December 31, 2023 $ 7,044,524 $ ( 24,141 ) $ ( 72,587 ) $ 6,947,796 General CECL reserve ( 70,371 ) Carrying Value $ 6,877,425 (1) Balance at December 31, 2022 does not include general CECL reserve. (2) Includes $ 341,000 of extension fees earned prior to December 31, 2023 which were received in January 2024. 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 Specific CECL reserve - - ( 65,494 ) ( 65,494 ) Sale of loan receivable ( 146,912 ) - - ( 146,912 ) Gain (loss) on sale of loans receivable 30,892 ( 191 ) - 30,701 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. Loan Participations Sold Our loan participations sold as of December 31, 2023 are summarized as follows ($ in thousands): Contractual Maximum Borrowings Outstanding Carrying Carrying (1) 10/18/2024 10/18/2024 $ 100,634 $ 100,508 $ 182,723 12/31/2024 (2) 12/31/2025 20,000 20,000 157,346 Total $ 120,634 $ 120,508 $ 340,069 (1) Includes cash reserve balances, if applicable. (2) In January of 2024 the loan securing this financing, which is classified as held-for-sale as of December 31, 2023 , was sold and the financing was repaid in full. 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. |
Summary of Notes Payable | Our notes payable as of December 31, 2023 are summarized as follows ($ in thousands): Contractual Maximum Borrowing Outstanding Carrying Carrying 12/31/2024 (1) 12/31/2025 $ 110,714 $ 110,152 $ 157,346 2/2/2026 2/2/2027 50,418 49,576 61,941 9/2/2026 9/2/2027 46,267 45,063 64,270 11/22/2024 11/24/2026 39,504 39,237 52,662 10/13/2025 10/13/2026 39,924 39,313 65,637 Total $ 286,827 $ 283,341 $ 401,856 (1) In January of 2024 the loan securing this financing, which is classified as held-for-sale as of December 31, 2023, was sold and the financing was repaid in full. 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 11/22/2024 11/24/2026 16,055 15,497 25,403 6/30/2025 6/30/2026 4,777 4,354 16,290 10/13/2025 10/13/2026 1,917 1,145 5,749 9/2/2026 9/2/2027 - ( 1,234 ) ( 1,763 ) Total $ 154,629 $ 149,521 $ 237,711 |
Summary of Secured Term Loan | The secured term loan as of December 31, 2023 is summarized as follows ($ in thousands): Contractual Maturity Date Stated Rate (1) Interest Rate Borrowing Outstanding Carrying Value 8/9/2026 S + 4.50% 9.95 % $ 725,452 $ 712,576 (1) One-month term SOFR at December 31, 2023 was 5.35 % . The secured term loan as of December 31, 2022 is summarized as follows ($ in thousands): Contractual Maturity Date Stated Rate (1) Interest Rate Borrowings 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 % . |
Summary of additional detail related to the company's real estate portfolio | Our debt related to real estate owned as of December 31, 2023 is summarized as follows ($ in thousands): Contractual Maturity Date Stated Rate (1) Net Interest Rate (1) Borrowings Outstanding Carrying Value 2/9/24 (2) S + 2.83 % 5.83 % $ 290,000 $ 289,913 (1) Effective July 1, 2023, interest on our debt related to real estate owned is indexed to SOFR. SOFR at December 31, 2023 was 5.35 % , whi ch exceeded the 3.00 % ceiling provided by our interest rate cap. See Note 7 - Derivatives for further detail. (2) On February 7, 2024, we modified this loan agreement to provide for, among other things, an extension of the contractual maturity date to November 9, 2024 , a $ 10.0 million principal paydown, and partial recourse to us. Concurrent with this modification, we purchased an interest rate cap for $ 0.5 million which provides for a strike rate of 5.00 % through the extended contractual maturity date. 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) LIBOR at December 31, 2022 was 4.39 % , which exceeded the 3.00 % ceiling provided by our interest rate cap. See Note 7 – Derivatives for further detail . |
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 secured term loan for the years ended December 31, 2023, 2022 and 2021 ($ in thousands): Year Ended December 31, December 31, December 31, Interest expense on secured financings $ 376,007 $ 178,036 $ 113,300 Interest expense on secured term loan 72,055 48,756 46,038 Amortization of deferred financing costs 22,450 20,145 21,251 Interest and related expense 470,512 246,937 180,589 Interest expense on debt related to real estate owned (1) 23,630 14,170 15,643 Total interest and related expense $ 494,142 $ 261,107 $ 196,232 (1) Interest expense on debt related to real estate owned includes $ 524,000 , $ 309,000 , and $ 56,000 of amortization of deferred financing costs for the years ended December 31, 2023, 2022, and 2021 , respectively. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023 Carrying Unpaid Principal Fair Value Hierarchy Level Value Balance Fair Value Level 1 Level 2 Level 3 Loans receivable held-for-investment, net $ 6,877,425 $ 7,044,524 $ 6,875,377 $ - $ - $ 6,875,377 Loans receivable held-for-sale 261,709 264,065 261,709 - - 261,709 Repurchase agreements 3,805,678 3,805,678 3,805,678 - - 3,805,678 Term Participation Facility 465,434 465,434 463,010 - - 463,010 Loan participations sold, net 120,508 120,634 120,000 - - 120,000 Notes payable, net 283,341 286,827 284,904 - - 284,904 Secured term loan, net 712,576 725,452 694,620 - - 694,620 Debt related to real estate owned, net 289,913 290,000 289,422 - - 289,422 December 31, 2022 Carrying Unpaid Principal Fair Value Hierarchy Level Value Balance Fair Value Level 1 Level 2 Level 3 Loans receivable held-for-investment, net $ 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, net 289,389 290,000 281,568 - - 281,568 |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Schedule of Common Stock Issued and Outstanding | The following table provides a summary of the number of shares of common stock outstanding during the years ended December 31, 2023, 2022, and 2021: Year Ended Common Stock Outstanding December 31, December 31, December 31, Beginning balance 138,376,144 139,840,088 132,848,720 Issuance of common stock - - 5,524,934 Conversion of fully vested RSUs to common stock 369,213 - 1,682,060 Repurchase of common stock - ( 1,463,944 ) ( 215,626 ) Ending balance 138,745,357 138,376,144 139,840,088 |
Summary of Dividends Declared For Common And Preferred Stock | The following tables detail our dividend activity for common stock ($ in thousands, except per share data): For the Quarter Ended March 31, 2023 June 30, 2023 September 30, 2023 December 31, 2023 Amount Per Amount Per Amount Per Amount Per Dividends declared - common $ 51,199 $ 0.37 $ 51,203 $ 0.37 $ 34,682 $ 0.25 $ 34,686 $ 0.25 Record Date - common stock March 31, 2023 June 30, 2023 September 29, 2023 December 29, 2023 Payment Date - common stock April 14, 2023 July 14, 2023 October 13, 2023 January 12, 2024 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 $ 51,502 $ 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 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Earning per Share | As of December 31, 2023, 2022 and 2021 we had no dilutive securities. As a result, basic and diluted EPS are the same. The calculation of basic and diluted EPS is as follows ($ in thousands, except for share and per share data): Year Ended December 31, December 31, December 31, Net income attributable to common stockholders $ 6,027 $ 112,064 $ 170,537 Dividends on participating securities (1) ( 3,681 ) ( 2,397 ) - Participating securities ʾ share in earnings - - - Basic earnings $ 2,346 $ 109,667 $ 170,537 Weighted average shares of common stock outstanding, (2) 138,617,043 139,306,311 134,539,645 Net income per share of common stock, basic and diluted $ 0.02 $ 0.79 $ 1.27 (1) For the years ended December 31, 2023, 2022, and 2021, dividends on participating securities ex cludes $ 35,000 , $ 3,600 , and $ 0 of dividends on fully vested RSUs. (2) Amounts as of December 31, 2023, 2022, and 2021 include 41,780 , 6,850 , and 0 fully vested RSUs, respectively. |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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 $ 38,153 $ 39,461 $ 39,135 Incentive fees 1,558 - - Total $ 39,711 $ 39,461 $ 39,135 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Time-Based Restricted Stock Units Activity | The following tables detail the time-based RSU activity during the years ended December 31, 2023 and 2022: Time-based Restricted Performance-based Restricted Number of Restricted Weighted Number of Restricted Weighted Unvested, December 31, 2022 2,159,280 $ 18.74 - $ - Granted 1,167,354 $ 11.25 - $ - Vested ( 749,265 ) $ 18.79 - $ - Forfeited ( 51,167 ) $ 16.52 - $ - Unvested, December 31, 2023 2,526,202 $ 15.31 - $ - 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 - $ - |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax Treatment for Common Stock Dividends | The following table details the income tax treatment for our common stock dividends: Year Ended December 31, 2023 December 31, 2022 December 31, 2021 Ordinary dividends 30.9 % 100.0 % 98.2 % Capital gain dividends 0.0 % 0.0 % 1.8 % Nondividend distributions 69.1 % 0.0 % 0.0 % Total 100.0 % 100.0 % 100.0 % |
Commitments and Contingencies (
Commitments and Contingencies (Table) | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Contractual Maturity Payment | Our contractual payments due under all financings were as follows as of December 31, 2023 ($ in thousands): Year Initial Fully Extended 2024 (1)(2) $ 2,560,418 $ 1,203,123 2025 1,751,360 1,203,080 2026 1,382,247 1,907,782 2027 - 1,089,578 2028 - 290,462 Total $ 5,694,025 $ 5,694,025 (1) Includes five loans in maturity default with aggregate associated financings outstanding of $ 250.7 million. Such loans receivable have a corresponding aggregate unpaid principal balance of $ 498.1 million. (2) Includes two loans classified as held-for-sale with aggregate associated financings outstanding of $ 184.2 million. Such loans receivable have a corresponding aggregate unpaid principal balance of $ 234.8 million. In January of 2024, these loans receivable were sold and their associated financings were repaid in full. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Details) | 12 Months Ended | ||
Dec. 31, 2023 USD ($) Segment | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||
Cash, FDIC insured amount | $ 250,000 | ||
Impairment of real estate | 0 | ||
Impairment of equity method investment | $ | $ 0 | ||
Number of operating segments | Segment | 2 | ||
Number of reportable segments | Segment | 2 | ||
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 | ||
Public Offering | |||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||
Offering costs incurred and charged to Additional Paid in Capital | $ 0 | $ 30,000 | $ 11,800,000 |
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 | |||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||
Ownership percentage by noncontrolling owners | 49% | ||
Non-controlling interests | $ 37,600,000 | ||
Minimum | |||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||
Real estate owned, depreciation estimated useful lives | 5 years | ||
Maximum | |||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||
Real estate owned, depreciation estimated useful lives | 40 years |
Loan Portfolio - Schedule of Lo
Loan Portfolio - Schedule of Loans and Financing Receivable (Details) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2023 USD ($) Loan | Dec. 31, 2022 USD ($) Loan | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Loan Commitment | $ 8,121,436 | [1] | $ 9,433,951 | [2] | |
Unpaid Principal Balance | 7,044,524 | 7,538,525 | |||
Loans receivable held-for-investment | $ 6,947,796 | [3] | $ 7,428,774 | [4] | |
Number of Loans | Loan | 65 | 77 | |||
Weighted Average Spread | 0 | 0 | |||
Weighted Average Interest Rate | 9% | [5] | 8.12% | [6] | |
General CECL reserve | $ (70,371) | [3] | $ (68,347) | [4] | |
Loans receivable held-for-investment, net | 6,877,425 | [3] | 7,360,427 | [4] | |
Variable Senior Loans | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Loan Commitment | 7,952,806 | [1],[7] | 9,221,549 | [2],[8] | |
Unpaid Principal Balance | 6,875,894 | [7] | 7,327,462 | [8] | |
Loans receivable held-for-investment | $ 6,779,899 | [3],[7] | $ 7,217,564 | [4],[8] | |
Number of Loans | Loan | 60 | [7] | 71 | [8] | |
Weighted Average Interest Rate | 8.67% | [5],[7] | 8.05% | [6],[8] | |
Variable Senior Loans | LIBOR | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Weighted Average Spread | [8],[9] | + 3.92% | |||
Variable Senior Loans | Secured Overnight Financing Rate (SOFR) | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Weighted Average Spread | [7],[10] | + 3.87% | |||
Variable Subordinate Loans | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Loan Commitment | $ 30,200 | [1] | $ 63,102 | [2] | |
Unpaid Principal Balance | 30,200 | 61,763 | |||
Loans receivable held-for-investment | $ 30,313 | [3] | $ 61,947 | [4] | |
Number of Loans | Loan | 1 | 2 | |||
Weighted Average Interest Rate | 18.21% | [5] | 15.95% | [6] | |
Variable Subordinate Loans | LIBOR | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Weighted Average Spread | [9] | + 11.55% | |||
Variable Subordinate Loans | Secured Overnight Financing Rate (SOFR) | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Weighted Average Spread | [10] | + 12.86% | |||
Variable Loan | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Loan Commitment | $ 7,983,006 | [1] | $ 9,284,651 | [2] | |
Unpaid Principal Balance | 6,906,094 | 7,389,225 | |||
Loans receivable held-for-investment | $ 6,810,212 | [3] | $ 7,279,511 | [4] | |
Number of Loans | Loan | 61 | 73 | |||
Weighted Average Interest Rate | 8.71% | [5] | 8.11% | [6] | |
Variable Loan | LIBOR | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Weighted Average Spread | [9] | + 3.98% | |||
Variable Loan | Secured Overnight Financing Rate (SOFR) | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Weighted Average Spread | [10] | + 3.91% | |||
Fixed Senior Loans | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Loan Commitment | $ 12,544 | [1],[7] | $ 23,373 | [2],[8] | |
Unpaid Principal Balance | 12,544 | [7] | 23,373 | [8] | |
Loans receivable held-for-investment | $ 12,767 | [3],[7] | $ 23,595 | [4],[8] | |
Number of Loans | Loan | 2 | [7] | 2 | [8] | |
Weighted Average Interest Rate | 8.49% | [5],[7] | 8.50% | [6],[8] | |
Fixed Subordinate Loans | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Loan Commitment | $ 125,886 | [1] | $ 125,927 | [2] | |
Unpaid Principal Balance | 125,886 | 125,927 | |||
Loans receivable held-for-investment | $ 124,817 | [3] | $ 125,668 | [4] | |
Number of Loans | Loan | 2 | 2 | |||
Weighted Average Interest Rate | 8.44% | [5] | 8.49% | [6] | |
Fixed Loan | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Loan Commitment | $ 138,430 | [1] | $ 149,300 | [2] | |
Unpaid Principal Balance | 138,430 | 149,300 | |||
Loans receivable held-for-investment | $ 137,584 | [3] | $ 149,263 | [4] | |
Number of Loans | Loan | 4 | 4 | |||
Weighted Average Interest Rate | 8.44% | [5] | 8.49% | [6] | |
[1] Loan commitment represents principal outstanding plus remaining unfunded loan commitments. Loan commitment represents principal outstanding plus remaining unfunded loan commitments. Net of specific CECL reserves of $ 72.6 million . Net of specific CECL reserves of $ 60.3 million. Reflects the weighted average interest rate based on the floating benchmark rate (if applicable), including SOFR floors (if applicable). Weighted average is based on outstanding principal as of December 31, 2023 and includes loans on non-accrual status. For loans placed on non-accrual, the interest rate used in calculating the weighted average interest rate 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, 2022 and includes loans on non-accrual status. For loans placed on non-accrual, the interest rate used in calculating the weighted average interest rate is 0 %. Senior loans include senior mortgages and similar credit quality loans, including related contiguous subordinate loans (if any), and pari passu participations in senior mortgage loans. During the year ended December 31, 2023 , we acquired the senior mortgage for a subordinate loan with a then unpaid principal balance of $ 32.9 million at December 31, 2022 and now classify the subordinate loan as a senior loan. Senior loans include senior mortgages and similar credit quality 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 London Interbank Offered Rate (“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 term Secured Overnight Financing Rate (“SOFR”) as of December 31, 2023 was 5.35 % . Weighted average is based on outstanding principal as of December 31, 2023 . For loans placed on non-accrual, the spread used in calculating the weighted average spread is 0 %. |
Loan Portfolio - Schedule of _2
Loan Portfolio - Schedule of Loans and Financing Receivable (Details) (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | |||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Specific CECL reserves | $ 72.6 | $ 60.3 | ||
Principal amount outstanding of senior loan acquired | $ 32.9 | |||
Weighted Average Spread | 0 | 0 | ||
Weighted Average Interest Rate | 9% | [1] | 8.12% | [2] |
LIBOR | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
One month LIBOR rate and SOFR | 4.39% | |||
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
One month LIBOR rate and SOFR | 5.35% | 4.36% | ||
[1] Reflects the weighted average interest rate based on the floating benchmark rate (if applicable), including SOFR floors (if applicable). Weighted average is based on outstanding principal as of December 31, 2023 and includes loans on non-accrual status. For loans placed on non-accrual, the interest rate used in calculating the weighted average interest rate 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, 2022 and includes loans on non-accrual status. For loans placed on non-accrual, the interest rate used in calculating the weighted average interest rate is 0 %. |
Loan Portfolio - Additional Inf
Loan Portfolio - Additional Information (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||||||
Jun. 30, 2023 USD ($) | Jan. 31, 2024 Loan | Dec. 31, 2023 USD ($) | Sep. 30, 2023 USD ($) | Jun. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) | Sep. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Jun. 30, 2022 | Jun. 08, 2016 | |||||
Financing Receivable Allowance For Credit Losses [Line Items] | |||||||||||||||||
Loan Receivable Provision For Current Expected Credit Loss Reserve | $ 152,700 | $ 146,400 | $ 152,700 | $ 146,400 | |||||||||||||
Loans and lease receivable reversal of general Cecl reserve | $ 6,000 | 18,900 | 6,000 | $ 18,900 | |||||||||||||
Debt instrument extended maturity date | Jun. 10, 2024 | Sep. 18, 2023 | |||||||||||||||
Amount received from the sale of loan | $ 65,000 | ||||||||||||||||
Unfunded loan commitment loans held for sale | $ 105,000 | 105,000 | |||||||||||||||
Carrying value before principal charge-off | 269,177 | 269,177 | |||||||||||||||
Gross proceeds from senior loan | 186,683 | $ 132,151 | $ 48,006 | ||||||||||||||
(Reversal) provision of current expected credit loss | 153,700 | 84,400 | |||||||||||||||
Financing receivable allowance for credit losses charge offs | 7,468 | ||||||||||||||||
Increase in specific CECL reserve | 159,600 | 65,500 | |||||||||||||||
Specific CECL reserves | 72,600 | 60,300 | |||||||||||||||
Loans receivable recorded subordinate loans held | 78,500 | 78,500 | |||||||||||||||
Loans Receivable, Acquired | $ 73,500 | ||||||||||||||||
Loan Commitment | 8,121,436 | [1] | 9,433,951 | [2] | 8,121,436 | [1] | 9,433,951 | [2] | |||||||||
Loan Commitments Funded | $ 78,500 | $ 78,500 | |||||||||||||||
Mixed-Use | New York | |||||||||||||||||
Financing Receivable Allowance For Credit Losses [Line Items] | |||||||||||||||||
Loan receivable specific reserve cash received | $ 8,300 | ||||||||||||||||
Specific CECL reserves | 42,000 | ||||||||||||||||
Additional specific CECL reserve | $ 24,900 | ||||||||||||||||
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% | ||||||||||||||
C M T G T T [Member] | |||||||||||||||||
Financing Receivable Allowance For Credit Losses [Line Items] | |||||||||||||||||
Equity interest ownership percentage | 51% | 51% | |||||||||||||||
Loan Commitment | $ 115,300 | $ 115,300 | |||||||||||||||
Maximum [Member] | Discount Rate | |||||||||||||||||
Financing Receivable Allowance For Credit Losses [Line Items] | |||||||||||||||||
Measurement Input | 0.095 | 0.095 | |||||||||||||||
Maximum [Member] | Market and Terminal Capitalization Rates | |||||||||||||||||
Financing Receivable Allowance For Credit Losses [Line Items] | |||||||||||||||||
Measurement Input | 0.083 | 0.083 | |||||||||||||||
Minimum [Member] | Discount Rate | |||||||||||||||||
Financing Receivable Allowance For Credit Losses [Line Items] | |||||||||||||||||
Measurement Input | 0.075 | 0.075 | |||||||||||||||
Minimum [Member] | Market and Terminal Capitalization Rates | |||||||||||||||||
Financing Receivable Allowance For Credit Losses [Line Items] | |||||||||||||||||
Measurement Input | 0.06 | 0.06 | |||||||||||||||
Subsequent Event | |||||||||||||||||
Financing Receivable Allowance For Credit Losses [Line Items] | |||||||||||||||||
Number of loans sold to an unaffiliated purchaser | Loan | 3 | ||||||||||||||||
Senior Loans | |||||||||||||||||
Financing Receivable Allowance For Credit Losses [Line Items] | |||||||||||||||||
Carrying value before principal charge-off | 137,200 | ||||||||||||||||
Gross proceeds from senior loan | 65,000 | ||||||||||||||||
Loan receivable sold unpaid principal balance | 137,600 | ||||||||||||||||
Charge Off | 73,000 | $ 73,000 | |||||||||||||||
Increase in specific CECL reserve | 35,900 | ||||||||||||||||
Senior Loans | San Francisco, CA | |||||||||||||||||
Financing Receivable Allowance For Credit Losses [Line Items] | |||||||||||||||||
Unpaid principal balance | $ 112,400 | 112,400 | |||||||||||||||
Loan receivable specific reserve carrying value | 112,200 | 112,200 | |||||||||||||||
Specific CECL reserves | 20,600 | ||||||||||||||||
Total loans receivable specific CECL reserve | 20,500 | ||||||||||||||||
Senior Loans | Arlington, VA | |||||||||||||||||
Financing Receivable Allowance For Credit Losses [Line Items] | |||||||||||||||||
Loan receivable specific reserve carrying value | 151,300 | 151,300 | |||||||||||||||
Specific CECL reserves | 30,600 | ||||||||||||||||
Additional specific CECL reserve | 600 | ||||||||||||||||
Total loans receivable specific CECL reserve | 31,200 | ||||||||||||||||
Senior Loans | Atlanta, GA | |||||||||||||||||
Financing Receivable Allowance For Credit Losses [Line Items] | |||||||||||||||||
Unpaid principal balance | 71,500 | 71,500 | |||||||||||||||
Loan receivable specific reserve carrying value | 71,100 | 71,100 | |||||||||||||||
Specific CECL reserves | 19,800 | ||||||||||||||||
Total loans receivable specific CECL reserve | $ 20,000 | ||||||||||||||||
Senior Loans | Hospitality | Austin, TX | |||||||||||||||||
Financing Receivable Allowance For Credit Losses [Line Items] | |||||||||||||||||
Gross proceeds from senior loan | 122,500 | ||||||||||||||||
Loan receivable sold unpaid principal balance | 122,500 | ||||||||||||||||
Loan receivable sold carrying value | 121,900 | ||||||||||||||||
Gain on sale of loan | 600 | ||||||||||||||||
Senior Loans | Mixed-Use | New York | |||||||||||||||||
Financing Receivable Allowance For Credit Losses [Line Items] | |||||||||||||||||
Unpaid principal balance | 208,800 | 208,800 | |||||||||||||||
Financing receivable allowance for credit losses charge offs | $ 66,900 | ||||||||||||||||
Specific CECL reserves | 42,000 | ||||||||||||||||
Additional specific CECL reserve | 24,900 | ||||||||||||||||
Senior Loans | Multifamily | San Francisco, CA | |||||||||||||||||
Financing Receivable Allowance For Credit Losses [Line Items] | |||||||||||||||||
Specific CECL reserve against loan | $ 37,100 | ||||||||||||||||
Unpaid principal balance | 138,800 | 138,800 | |||||||||||||||
Loan receivable specific reserve carrying value | 138,300 | $ 138,300 | |||||||||||||||
Financing receivable allowance for credit losses charge offs | 73,000 | ||||||||||||||||
Loan receivable specific reserve cash received | 1,100 | ||||||||||||||||
Recognition of incremental in specific CECL reserve | $ 35,900 | ||||||||||||||||
Specific CECL reserves | $ 18,300 | ||||||||||||||||
Additional specific CECL reserve | 18,800 | ||||||||||||||||
Senior Loans | Maximum [Member] | |||||||||||||||||
Financing Receivable Allowance For Credit Losses [Line Items] | |||||||||||||||||
Borrower with financial difficulty interest rate | 1.57% | ||||||||||||||||
Percentage of loans receivable held-for-investment, net | 1.30% | 1.30% | |||||||||||||||
Total commitments and amortized cost basis | $ 87,800 | $ 87,800 | |||||||||||||||
Senior Loans | Minimum [Member] | |||||||||||||||||
Financing Receivable Allowance For Credit Losses [Line Items] | |||||||||||||||||
Borrower with financial difficulty interest rate | 1% | ||||||||||||||||
Percentage of loans receivable held-for-investment, net | 1.10% | 1.10% | |||||||||||||||
Total commitments and amortized cost basis | $ 76,400 | $ 76,400 | |||||||||||||||
Senior Loans | Subsequent Event | |||||||||||||||||
Financing Receivable Allowance For Credit Losses [Line Items] | |||||||||||||||||
Number of loans sold to an unaffiliated purchaser | Loan | 3 | ||||||||||||||||
Subordinate Loan | New York | |||||||||||||||||
Financing Receivable Allowance For Credit Losses [Line Items] | |||||||||||||||||
Loan receivable specific reserve carrying value | $ 900 | 900 | |||||||||||||||
Specific CECL reserves | $ 900 | ||||||||||||||||
Risk Rating Five | Senior Loans | |||||||||||||||||
Financing Receivable Allowance For Credit Losses [Line Items] | |||||||||||||||||
Amount received from the sale of loan | $ 1,100 | ||||||||||||||||
[1] Loan commitment represents principal outstanding plus remaining unfunded loan commitments. Loan commitment represents principal outstanding plus remaining unfunded loan commitments. |
Loan Portfolio - Schedule of _3
Loan Portfolio - Schedule of Loan Receivable Portfolio (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||||||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |||||
Loans Receivable Roll Forward [Line Items] | |||||||
Repayments of non-cash advances in lieu of interest | $ 23,910 | $ 21,609 | $ 126,865 | ||||
Accretion of fees | 22,809 | 24,763 | 25,237 | ||||
Gain (loss) on sale of loans receivable | [1],[2] | 30,701 | |||||
Principal charge-offs | 7,468 | ||||||
Loans receivable held-for-investment | 6,877,425 | [3] | 7,360,427 | [4] | |||
Unpaid Principal Balance [Member] | |||||||
Loans Receivable Roll Forward [Line Items] | |||||||
Balance | 7,538,525 | 6,441,238 | |||||
Initial funding of new loan originations and acquisitions | 101,059 | 2,030,456 | |||||
Advances on existing loans | 668,651 | 602,254 | |||||
Non-cash advances in lieu of interest | 61,699 | 77,004 | |||||
Repayments of loans receivable | (561,060) | (1,463,271) | |||||
Repayments of non-cash advances in lieu of interest | (23,910) | (21,609) | |||||
Sales of loans receivable | (260,110) | (146,912) | |||||
Transfer to real estate owned | (208,797) | ||||||
Transfer to loans held-for-sale | (271,533) | ||||||
Gain (loss) on sale of loans receivable | 30,892 | ||||||
Principal charge-offs | (11,527) | ||||||
Balance | 7,044,524 | 7,538,525 | 6,441,238 | ||||
Deferred Fees [Member] | |||||||
Loans Receivable Roll Forward [Line Items] | |||||||
Balance | (49,451) | (33,933) | |||||
Non-cash advances in lieu of interest | 1,933 | 1,447 | |||||
Origination fees, extension fees and exit fees | (2,833) | [5] | (41,537) | ||||
Accretion of fees | 22,809 | 24,763 | |||||
Sales of loans receivable | 1,045 | ||||||
Transfer to loans held-for-sale | 2,356 | ||||||
Gain (loss) on sale of loans receivable | (191) | ||||||
Balance | (24,141) | (49,451) | (33,933) | ||||
Specific CECL Allowance [Member] | |||||||
Loans Receivable Roll Forward [Line Items] | |||||||
Balance | (60,300) | (6,333) | |||||
Specific CECL reserve | (159,648) | (65,494) | |||||
Sales of loans receivable | 72,958 | ||||||
Transfer to real estate owned | 66,935 | ||||||
Transfer to loans held-for-sale | 7,468 | ||||||
Principal charge-offs | 11,527 | ||||||
Balance | (72,587) | (60,300) | (6,333) | ||||
Carrying Value [Member] | |||||||
Loans Receivable Roll Forward [Line Items] | |||||||
Balance | [6] | 7,428,774 | [7] | 6,400,972 | |||
Initial funding of new loan originations and acquisitions | 101,059 | [7] | 2,030,456 | [6] | |||
Advances on existing loans | 668,651 | [7] | 602,254 | [6] | |||
Non-cash advances in lieu of interest | 63,632 | [7] | 78,451 | [6] | |||
Origination fees, extension fees and exit fees | (2,833) | [5],[7] | (41,537) | [6] | |||
Repayments of loans receivable | (561,060) | [7] | (1,463,271) | [6] | |||
Repayments of non-cash advances in lieu of interest | (23,910) | [7] | (21,609) | [6] | |||
Accretion of fees | 22,809 | [7] | 24,763 | [6] | |||
Specific CECL reserve | (159,648) | [7] | (65,494) | [6] | |||
Sales of loans receivable | (186,107) | [7] | (146,912) | [6] | |||
Transfer to real estate owned | [7] | (141,862) | |||||
Transfer to loans held-for-sale | [7] | (261,709) | |||||
Gain (loss) on sale of loans receivable | [6] | 30,701 | |||||
Balance | 6,947,796 | [7] | 7,428,774 | [6],[7] | $ 6,400,972 | [6] | |
General CECL reserve | (70,371) | [7] | (68,347) | [6] | |||
Loans receivable held-for-investment | $ 6,877,425 | [7] | $ 7,360,427 | [6] | |||
[1] Includes Mortgage and Mezzanine loans. Includes interest in loans receivable held-for-investment. Net of specific CECL reserves of $ 72.6 million . Net of specific CECL reserves of $ 60.3 million. Includes $ 341,000 of extension fees earned prior to December 31, 2023 which were received in January 2024. Balance at December 31, 2021 does not include general CECL reserve. Balance at December 31, 2022 does not include general CECL reserve. |
Loan Portfolio - Schedule of _4
Loan Portfolio - Schedule of Loan Receivable Portfolio (Details) (Parenthetical) | 1 Months Ended |
Jan. 31, 2024 USD ($) | |
Subsequent Event | |
Loans Receivable Roll Forward [Line Items] | |
Extension fees received | $ 341,000 |
Loans Portfolio - Schedule of L
Loans Portfolio - Schedule of Loans Receivable Held-for-sale (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Financing Receivable, Past Due [Line Items] | |
Loan Commitment | $ 378,906 |
Unpaid Principal Balance | 271,533 |
Carrying value before principal charge-off | 269,177 |
Principal Charge-Off | (7,468) |
Held-For-Sale Carrying Value | 261,709 |
For Sale Condo | FL | |
Financing Receivable, Past Due [Line Items] | |
Loan Commitment | 160,000 |
Unpaid Principal Balance | 158,180 |
Carrying value before principal charge-off | 157,346 |
Principal Charge-Off | 0 |
Held-For-Sale Carrying Value | 157,346 |
Multifamily | FL | |
Financing Receivable, Past Due [Line Items] | |
Loan Commitment | 77,115 |
Unpaid Principal Balance | 76,580 |
Carrying value before principal charge-off | 76,275 |
Principal Charge-Off | 0 |
Held-For-Sale Carrying Value | 76,275 |
Mixed-Use | FL | |
Financing Receivable, Past Due [Line Items] | |
Loan Commitment | 141,791 |
Unpaid Principal Balance | 36,773 |
Carrying value before principal charge-off | 35,556 |
Principal Charge-Off | (7,468) |
Held-For-Sale Carrying Value | $ 28,088 |
Loan Portfolio - Schedule of _5
Loan Portfolio - Schedule of Loans Receivable Held-for-investment by Loan Type (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | |||
Accounts Notes And Loans Receivable [Line Items] | |||||
General CECL reserve | $ (70,371) | [1] | $ 68,347 | [2] | |
Concentration of Risk | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
General CECL reserve | (70,371) | [3] | (68,347) | [4] | |
Loans receivable held-for-investment, net | 6,877,425 | [3] | 7,360,427 | [4] | |
Concentration of Risk | Loan Type | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total portfolio loans carrying value | $ 6,947,796 | [3] | $ 7,428,774 | [4] | |
Percentage of total portfolio loans | 100% | 100% | |||
Concentration of Risk | Property Type | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total portfolio loans carrying value | $ 6,947,796 | [3] | $ 7,428,774 | [4] | |
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 | $ 2,829,436 | [3] | $ 3,044,892 | [4] | |
Percentage of total portfolio loans | 41% | 41% | |||
Concentration of Risk | Property Type | Hospitality | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total portfolio loans carrying value | $ 1,339,067 | [3] | $ 1,551,946 | [4] | |
Percentage of total portfolio loans | 19% | 20% | |||
Concentration of Risk | Property Type | Office | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total portfolio loans carrying value | $ 961,744 | [3] | $ 1,086,018 | [4] | |
Percentage of total portfolio loans | 14% | 15% | |||
Concentration of Risk | Property Type | Mixed-Use | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total portfolio loans carrying value | [5] | $ 596,919 | [3] | $ 615,599 | [4] |
Percentage of total portfolio loans | [5] | 9% | 8% | ||
Concentration of Risk | Property Type | Land | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total portfolio loans carrying value | $ 518,252 | [3] | $ 426,645 | [4] | |
Percentage of total portfolio loans | 7% | 6% | |||
Concentration of Risk | Property Type | Other | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total portfolio loans carrying value | $ 482,582 | [3] | $ 269,464 | [4] | |
Percentage of total portfolio loans | 7% | 4% | |||
Concentration of Risk | Property Type | For Sale Condo | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total portfolio loans carrying value | $ 219,796 | [3] | $ 434,210 | [4] | |
Percentage of total portfolio loans | 3% | 6% | |||
Concentration of Risk | Geographic Location | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total portfolio loans carrying value | $ 6,947,796 | [3] | $ 7,428,774 | [4] | |
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 | $ 2,518,716 | [3] | $ 2,450,710 | [4] | |
Percentage of total portfolio loans | 35% | 33% | |||
Concentration of Risk | Geographic Location | Northeast | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total portfolio loans carrying value | $ 1,861,239 | [3] | $ 1,999,648 | [4] | |
Percentage of total portfolio loans | 27% | 27% | |||
Concentration of Risk | Geographic Location | Mid Atlantic | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total portfolio loans carrying value | $ 761,588 | [3] | $ 809,908 | [4] | |
Percentage of total portfolio loans | 11% | 11% | |||
Concentration of Risk | Geographic Location | Southeast | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total portfolio loans carrying value | $ 735,011 | [3] | $ 1,008,590 | [4] | |
Percentage of total portfolio loans | 11% | 14% | |||
Concentration of Risk | Geographic Location | Southwest | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total portfolio loans carrying value | $ 592,324 | [3] | $ 694,887 | [4] | |
Percentage of total portfolio loans | 9% | 9% | |||
Concentration of Risk | Geographic Location | Midwest | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total portfolio loans carrying value | $ 477,019 | [3] | $ 461,531 | [4] | |
Percentage of total portfolio loans | 7% | 6% | |||
Concentration of Risk | Geographic Location | Other | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total portfolio loans carrying value | $ 1,899 | [3] | $ 3,500 | [4] | |
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 | [6] | $ 6,792,666 | [3] | $ 7,241,159 | [4],[7] |
Percentage of total portfolio loans | [6],[7] | 98% | 97% | ||
Concentration of Risk | Subordinate loans | Loan Type | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total portfolio loans carrying value | $ 155,130 | [3] | $ 187,615 | [4] | |
Percentage of total portfolio loans | 2% | 3% | |||
[1] Net of specific CECL reserves of $ 72.6 million. Net of specific CECL reserves of $ 60.3 million. Net of specific CECL reserves of $ 72.6 million at December 31, 2023 Net of specific CECL reserves of $ 60.3 million at December 31, 2022 At December 31, 2023, mixed-use comprises of 3 % office, 2 % retail, 2 % multifamily, 1 % hospitality, and immaterial amounts of for sale condo . At December 31, 2022 , mixed-use comprises of 4 % office, 2 % retail, 1 % for sale condo, 1 % multifamily, and immaterial amounts of hospitality and signage components. Senior loans include senior mortgages and similar credit quality loans, including related contiguous subordinate loans (if any) and pari passu participations in senior mortgage loans Senior loans include senior mortgages and similar credit quality loans, including related contiguous subordinate loans (if any), and pari passu participations in senior mortgage loans. During the year ended December 31, 2023 , we acquired the senior mortgage for a subordinate loan with a then unpaid principal balance of $ 32.9 million at December 31, 2022 and now classify the subordinate loan as a senior loan. |
Loan Portfolio - Schedule of _6
Loan Portfolio - Schedule of Loans Receivable Held-for-investment by Loan Type (Details) (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Specific CECL reserves | $ 72.6 | $ 60.3 |
Concentration of Risk | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Specific CECL reserves | $ 72.6 | $ 60.3 |
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 | 3% | 4% |
Concentration of Risk | Property Type | Mixed-Use, Retail | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Percentage of total portfolio loans | 2% | 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 | 2% | 1% |
Concentration of Risk | Property Type | Mixed-Use, Hospitality | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Percentage of total portfolio loans | 1% |
Loan Portfolio - Summarizes of
Loan Portfolio - Summarizes of Interest and Accretion Income from Loan Portfolio (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Receivables [Abstract] | ||||
Coupon interest | $ 662,789 | $ 441,320 | $ 386,731 | |
Accretion of fees | 22,809 | 24,967 | 26,487 | |
Interest on cash, cash equivalents, and other income | 12,276 | 4,381 | 2,045 | |
Total interest and related income | [1] | $ 697,874 | $ 470,668 | $ 415,263 |
[1] We recognized $ 1.6 million , $ 5.1 million, and $ 7.3 million in pre-payment penalties and accelerated fees during the years ended December 31, 2023, 2022, and 2021 , respectively. |
Loan Portfolio - Summarizes o_2
Loan Portfolio - Summarizes of Interest and Accretion Income from Loan Portfolio (Parenthetical) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Receivables [Abstract] | |||
Pre-payment penalties and accelerated fees | $ 1.6 | $ 5.1 | $ 7.3 |
Loan Portfolio - Loan Modificat
Loan Portfolio - Loan Modifications (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Carrying value | $ 120,508 | $ 263,798 |
Loan Portfolio - Schedule of Pr
Loan Portfolio - Schedule of Principal Balance Carrying Value of The Loans Receivable Held-for-investment (Details) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2023 USD ($) Loan | Dec. 31, 2022 USD ($) Loan | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | |||||
Number of Loans | Loan | 65 | 77 | |||
Principal Balance | $ 7,044,524 | $ 7,538,525 | |||
Carrying Value | $ 6,877,425 | [1] | $ 7,360,427 | [2] | |
% of Total of Carrying Value | 100% | 100% | |||
Carrying value gross | $ 6,947,796 | [1] | $ 7,428,774 | [2] | |
General CECL reserve | $ (70,371) | [1] | $ 68,347 | [2] | |
Risk Rating One | |||||
Financing Receivable Allowance For Credit Losses [Line Items] | |||||
Number of Loans | Loan | 0 | ||||
% of Total of Carrying Value | 0% | 0% | |||
Risk Rating Two | |||||
Financing Receivable Allowance For Credit Losses [Line Items] | |||||
Number of Loans | Loan | 0 | 1 | |||
Principal Balance | $ 927 | ||||
Carrying Value | [2] | $ 913 | |||
% of Total of Carrying Value | 0% | 0% | |||
Risk Rating Three | |||||
Financing Receivable Allowance For Credit Losses [Line Items] | |||||
Number of Loans | Loan | 45 | 63 | |||
Principal Balance | $ 5,169,731 | $ 6,181,207 | |||
Carrying Value | $ 5,148,188 | [1] | $ 6,136,300 | [2] | |
% of Total of Carrying Value | 74% | 83% | |||
Risk Rating Four | |||||
Financing Receivable Allowance For Credit Losses [Line Items] | |||||
Number of Loans | Loan | 15 | 10 | |||
Principal Balance | $ 1,536,748 | $ 1,005,345 | |||
Carrying Value | $ 1,534,829 | [1] | $ 1,001,235 | [2] | |
% of Total of Carrying Value | 22% | 13% | |||
Risk Rating Five | |||||
Financing Receivable Allowance For Credit Losses [Line Items] | |||||
Number of Loans | Loan | 5 | 3 | |||
Principal Balance | $ 338,045 | $ 351,046 | |||
Carrying Value | $ 264,779 | [1] | $ 290,326 | [2] | |
% of Total of Carrying Value | 4% | 4% | |||
[1] Net of specific CECL reserves of $ 72.6 million. Net of specific CECL reserves of $ 60.3 million. |
Loan Portfolio - Schedule of _7
Loan Portfolio - Schedule of Principal Balance Carrying Value of The Loans Receivable Held-for-investment (Parenthetical) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Receivables [Abstract] | ||
Specific CECL reserves | $ 72.6 | $ 60.3 |
Loan Portfolio - Summary of Car
Loan Portfolio - Summary of Carrying Value and Significant Characteristics of Loans Receivable Held-for-investment on Non-accrual Status (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2023 | Dec. 31, 2022 | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Unpaid Principal Balance | $ 717,738 | [1],[2] | $ 418,046 | [3],[4] | |
Carrying Value Before Specific CECL Reserve | 715,070 | [1],[2] | 417,626 | [3],[4] | |
Specific CECL Reserve | (72,587) | [1],[2] | (60,300) | [3],[4] | |
Net Carrying Value | 642,483 | [1],[2] | 357,326 | [3],[4] | |
Risk Rating Five | Multifamily | CA | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Unpaid Principal Balance | [5] | 138,749 | |||
Carrying Value Before Specific CECL Reserve | [5] | 138,329 | |||
Specific CECL Reserve | [5] | 18,293 | |||
Net Carrying Value | [5] | $ 120,036 | |||
Interest Recognition Method | [5] | Cost recovery | |||
Interest Recognition as of Date | [5] | Dec. 01, 2022 | |||
Risk Rating Five | Mixed-Use | NY | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Unpaid Principal Balance | [6] | $ 208,797 | |||
Carrying Value Before Specific CECL Reserve | [6] | 208,797 | |||
Specific CECL Reserve | [6] | (42,007) | |||
Net Carrying Value | [6] | $ 166,790 | |||
Interest Recognition Method | [6] | Cash basis | |||
Interest Recognition as of Date | [6] | Nov. 01, 2022 | |||
Risk Rating Five | Land | VA | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Unpaid Principal Balance | [7] | 151,326 | |||
Carrying Value Before Specific CECL Reserve | [7] | 151,326 | |||
Specific CECL Reserve | [7] | (31,226) | |||
Net Carrying Value | [7] | $ 120,100 | |||
Interest Recognition Method | [7] | Cost recovery | |||
Interest Recognition as of Date | [7] | Jan. 01, 2023 | |||
Risk Rating Five | Office | CA | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Unpaid Principal Balance | [8] | $ 112,442 | |||
Carrying Value Before Specific CECL Reserve | [8] | 112,163 | |||
Specific CECL Reserve | [8] | (20,523) | |||
Net Carrying Value | [8] | $ 91,640 | |||
Interest Recognition Method | [8] | Cash basis | |||
Interest Recognition as of Date | [8] | Apr. 01, 2023 | |||
Risk Rating Five | Office | GA | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Unpaid Principal Balance | $ 71,492 | ||||
Carrying Value Before Specific CECL Reserve | 71,094 | ||||
Specific CECL Reserve | (19,954) | ||||
Net Carrying Value | $ 51,140 | ||||
Interest Recognition Method | Cost recovery | ||||
Interest Recognition as of Date | Sep. 01, 2023 | ||||
Risk Rating Five | Other | NY | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Unpaid Principal Balance | $ 886 | ||||
Carrying Value Before Specific CECL Reserve | 884 | ||||
Specific CECL Reserve | $ (884) | ||||
Interest Recognition Method | Cost recovery | ||||
Interest Recognition as of Date | Jun. 30, 2023 | ||||
Risk Rating Five | Other | Other | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Unpaid Principal Balance | $ 1,899 | $ 3,500 | |||
Carrying Value Before Specific CECL Reserve | 1,899 | 3,500 | |||
Net Carrying Value | $ 1,899 | $ 3,500 | |||
Interest Recognition Method | Cost recovery | Cost recovery | |||
Interest Recognition as of Date | Jul. 01, 2020 | Jul. 01, 2020 | |||
Risk Rating Four | Multifamily | CA | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Unpaid Principal Balance | $ 214,479 | ||||
Carrying Value Before Specific CECL Reserve | 212,877 | ||||
Net Carrying Value | $ 212,877 | ||||
Interest Recognition Method | Cost recovery | ||||
Interest Recognition as of Date | Oct. 01, 2023 | ||||
Risk Rating Four | Land | NY | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Unpaid Principal Balance | $ 67,000 | $ 67,000 | |||
Carrying Value Before Specific CECL Reserve | 67,000 | 67,000 | |||
Net Carrying Value | $ 67,000 | $ 67,000 | |||
Interest Recognition Method | Cash basis | Cash basis | |||
Interest Recognition as of Date | Nov. 01, 2021 | Nov. 01, 2021 | |||
Risk Rating Four | Office | CA | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Unpaid Principal Balance | $ 98,214 | ||||
Carrying Value Before Specific CECL Reserve | 97,827 | ||||
Net Carrying Value | $ 97,827 | ||||
Interest Recognition Method | Cost recovery | ||||
Interest Recognition as of Date | Sep. 01, 2023 | ||||
[1] As of December 31, 2023, loans on non-accrual status had aggregate unfunded loan commitments of $ 75.1 million. Loans classified as non-accrual represented 9.2 % of our total loans receivable held-for-investment at December 31, 2023 , based on carrying value net of any specific CECL reserves. Excludes four loans with an aggregate carrying value of $ 490.2 million that are in maturity default but remain on accrual status as the borrower is either current on interest payments or interest is deemed collectible based on the underlying collateral value. Additionally, as of December 31, 2023, we have one loan with an aggregate carrying value of $ 78.4 million that is delinquent on interest payments but remains on accrual status as the interest is deemed collectible based on the underlying collateral value. As of December 31, 2022 , loans on non-accrual status had aggregate unfunded loan commitments of $ 17.5 million. Loans classified as non-accrual represented 4.8 % of the total loans receivable held-for-investment at December 31, 2022 , based on carrying value. Excludes three loans with an aggregate carrying value of $ 360.0 million that remain on accrual status but are in maturity default. During the three months ended September 30, 2023, we sold this loan resulting in gross proceeds of $ 65.0 million and a principal charge-off of $ 73.0 million. Interest income of $ 1.1 million was recognized on a cash basis for this loan while on non-accrual status during the year ended December 31, 2022 . On June 30 2023, we obtained legal title to the collateral property of this loan through an assignment-in-lieu of foreclosure. See Note 5 - Real Estate Owned for further detail. During the quarter ended June 30, 2023, this loan was reclassified from a hospitality loan to a land loan based on the state of the collateral. Interest income of $ 0.3 million was recognized on a cash basis for this loan while on non-accrual status during the year ended December 31, 2023 . |
Loan Portfolio - Summary of C_2
Loan Portfolio - Summary of Carrying Value and Significant Characteristics of Loans Receivable Held-for-investment on Non-accrual Status (Parenthetical) (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |
Sep. 30, 2023 USD ($) | Dec. 31, 2023 USD ($) Loan | Dec. 31, 2022 USD ($) Loan | |
Receivables [Abstract] | |||
Interest recognized | $ 0.3 | $ 1.1 | |
Gross proceeds from the sale of loan | $ 65 | ||
Principal charge-off | $ 73 | ||
Financing receivable, percent past due | 9.20% | 4.80% | |
Number of additional loans | Loan | 4 | 3 | |
Nonaccrual carrying value remain on accrual status maturity default | $ 490.2 | $ 360 | |
Accrual delinquent loan carrying value | 78.4 | ||
Loans on non-accrual status unfunded loan commitments | $ 75.1 | $ 17.5 |
Loan Portfolio - Loan Risk Rati
Loan Portfolio - Loan Risk Ratings (Details) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Weighted-average risk rating on loan exposure | 3.30% | 3.20% |
Loan Portfolio - Schedule of Ac
Loan Portfolio - Schedule of Activity In Allowance For Loan Losses (Details) - Current Expected Credit Losses - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | ||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Total current expected credit loss reserve, Balance | $ 146,362 | $ 73,528 | |
Increase (reversal) in current credit loss reserve | 153,683 | 84,361 | |
Principal charge-off | (147,361) | (11,527) | |
Total current expected credit loss reserve, Balance | $ 152,684 | 146,362 | |
Reserve | [1] | 2.20% | |
Specific C E C L Allowance | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Total current expected credit loss reserve, Balance | $ 60,300 | 6,333 | |
Increase (reversal) in current credit loss reserve | 159,648 | 65,494 | |
Principal charge-off | (147,361) | (11,527) | |
Total current expected credit loss reserve, Balance | $ 72,587 | 60,300 | |
Reserve | [1] | 1% | |
Loans Receivable Held For Investment | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Total current expected credit loss reserve, Balance | $ 68,347 | 60,677 | |
Increase (reversal) in current credit loss reserve | 2,024 | 7,670 | |
Total current expected credit loss reserve, Balance | 70,371 | 68,347 | |
Interests In Loans Receivable Held For Investment | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Total current expected credit loss reserve, Balance | 14 | ||
Increase (reversal) in current credit loss reserve | (14) | ||
Accrued Interest Receivable | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Total current expected credit loss reserve, Balance | 218 | ||
Increase (reversal) in current credit loss reserve | (218) | ||
Unfunded Loan Commitments | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Total current expected credit loss reserve, Balance | [2] | 17,715 | 6,286 |
Increase (reversal) in current credit loss reserve | [2] | (7,989) | 11,429 |
Total current expected credit loss reserve, Balance | [2] | 9,726 | 17,715 |
General CECL Reserve [Member] | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Total current expected credit loss reserve, Balance | 86,062 | 67,195 | |
Increase (reversal) in current credit loss reserve | (5,965) | 18,867 | |
Total current expected credit loss reserve, Balance | $ 80,097 | $ 86,062 | |
Reserve | [1] | 1.20% | |
[1] Represents CECL reserve as a percent of total unpaid principal balance of loans receivable held-for-investment as of December 31, 2023. The CECL reserve for unfunded commitments is included in other liabilities on the consolidated balance sheets. |
Loans Portfolio - Summary of Lo
Loans Portfolio - Summary of Loans Receivable Held-for-investment With Specific CECL Reserves (Details) - Specific CECL Reserves $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Unpaid Principal Balance | $ 336,146 |
Carrrying Value Before Specific CECL Reserve | 335,467 |
Specific CECL Reserve | 72,587 |
Net Carrying Value | 262,880 |
VA | Land | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Unpaid Principal Balance | 151,326 |
Carrrying Value Before Specific CECL Reserve | 151,326 |
Specific CECL Reserve | 31,226 |
Net Carrying Value | 120,100 |
CA | Office | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Unpaid Principal Balance | 112,442 |
Carrrying Value Before Specific CECL Reserve | 112,163 |
Specific CECL Reserve | 20,523 |
Net Carrying Value | 91,640 |
GA | Office | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Unpaid Principal Balance | 71,492 |
Carrrying Value Before Specific CECL Reserve | 71,094 |
Specific CECL Reserve | 19,954 |
Net Carrying Value | 51,140 |
NY | Other | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Unpaid Principal Balance | 886 |
Carrrying Value Before Specific CECL Reserve | 884 |
Specific CECL Reserve | $ 884 |
Loan Portfolio - Schedule of Ca
Loan Portfolio - Schedule of Carrying Value of Loan Portfolio Based on Internal Risk Ratings (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 USD ($) Loan | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Number of Loans | Loan | 65 | |
Amortized Cost Basis | $ 6,947,796 | [1] |
Year 1 | 100,886 | |
Year 2 | 2,590,298 | |
Year 3 | 1,699,597 | |
Year 4 | 179,390 | |
Year 5 | 1,538,574 | |
Year 6 | 839,051 | |
Charge-offs, Year 3 | 7,468 | [2] |
Charge-offs, Year 5 | 72,958 | [2] |
Charge-offs, Year 6 | $ 66,935 | [2] |
Risk Rating One | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Number of Loans | Loan | 0 | |
Risk Rating Two | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Number of Loans | Loan | 0 | |
Risk Rating Three | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Number of Loans | Loan | 45 | |
Amortized Cost Basis | $ 5,148,188 | [1] |
Year 1 | 100,886 | |
Year 2 | 2,091,992 | |
Year 3 | 1,483,191 | |
Year 5 | 1,023,046 | |
Year 6 | $ 449,073 | |
Risk Rating Four | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Number of Loans | Loan | 15 | |
Amortized Cost Basis | $ 1,534,829 | [1] |
Year 2 | 498,306 | |
Year 3 | 165,266 | |
Year 4 | 87,750 | |
Year 5 | 513,629 | |
Year 6 | $ 269,878 | |
Risk Rating Five | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Number of Loans | Loan | 5 | |
Amortized Cost Basis | $ 264,779 | [1] |
Year 3 | 51,140 | |
Year 4 | 91,640 | |
Year 5 | 1,899 | |
Year 6 | $ 120,100 | |
[1] Net of specific CECL reserves of $ 72.6 million. Principal charge-offs recognized in connection with an anticipated sale of three senior loans receivable as of December 31, 2023 , a sale of a senior loan receivable during the three months ended September 30, 2023 and an assignment-in-lieu of foreclosure of a mixed-use property during the three months ended June 30, 2023. See prior discussion of loan sales and Note 5 - Real Estate Owned for further detail. |
Loan Portfolio - Schedule of _8
Loan Portfolio - Schedule of Carrying Value of Loan Portfolio Based on Internal Risk Ratings (Details) (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Specific CECL reserves | $ 72.6 | $ 60.3 |
Loan Portfolio - Schedule of Ov
Loan Portfolio - Schedule of Overall Statistics for Loans Receivable Held-for-Investment (Details) - Loans Receivable Portfolio | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | ||
Financing Receivable, Past Due [Line Items] | |||
Weighted average yield to maturity | [1] | 9.10% | 8.60% |
Weighted average term to initial maturity | 1 year 2 months 12 days | 1 year 7 months 6 days | |
Weighted average term to fully extended maturity | [2] | 2 years 7 months 6 days | 3 years 2 months 12 days |
[1] Represents the weighted average annualized yield to initial maturity of each loan, inclusive of coupon, and fees received, based on the applicable floating benchmark rate/floors (if applicable), in place as of December 31, 2023 . For loans placed on non-accrual, the annualized yield to initial maturity used in calculating the weighted average annualized yield to initial maturity is 0 %. Term to fully extended maturity is determined based on the maximum maturity of each of the corresponding loans, assuming all extension options are exercised by the borrower; provided, however, that our loans may be repaid prior to such date. |
Loan Portfolio - Schedule of _9
Loan Portfolio - Schedule of Overall Statistics for Loans Receivable Held-for-Investment (Parenthetical) (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Loans Receivable Portfolio | |
Financing Receivable, Past Due [Line Items] | |
weighted average annualized yield | 0% |
Equity Method Investment - Addi
Equity Method Investment - Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Jun. 08, 2016 |
Schedule of Equity Method Investments [Line Items] | |||
Equity method investment | $ 42,474 | $ 41,880 | |
CMTG/TT | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity interest ownership percentage | 51% | 51% | |
Equity method investment | $ 42,500 |
Real Estate Owned - Additional
Real Estate Owned - Additional Information (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Jun. 30, 2023 USD ($) | Feb. 08, 2021 USD ($) Property | Sep. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | ||||
Mortgage Loans On Real Estate [Line Items] | ||||||||||
Unpaid principal balance | $ 271,533 | |||||||||
Specific CECL reserves | 72,600 | $ 60,300 | ||||||||
Principal charge-off | $ 73,000 | |||||||||
Real estate estimated fair value | 148,643 | |||||||||
Loan held by company | $ 631,311 | [1] | 340,069 | [2] | 631,311 | [1] | ||||
Debt related to real estate owned, net | 289,389 | 289,913 | 289,389 | |||||||
Gain on foreclosure of real estate owned | 4,162 | $ 1,430 | ||||||||
Real estate acquired through foreclosure, fair value | 401,189 | 522,959 | 401,189 | |||||||
Real estate owned | 416,343 | 546,999 | 416,343 | |||||||
Depreciation expense | 8,900 | 8,000 | 7,100 | |||||||
Amortization of in-place and other lease values | 400 | |||||||||
Amortization of above market lease | 900 | |||||||||
Amortization of below market lease | $ 200 | |||||||||
Weighted average amortization period for in-place and other lease values | 8 years 10 months 24 days | |||||||||
Weighted average amortization period for above market lease values | 10 years 6 months | |||||||||
Weighted average amortization period for below market lease values | 11 years 3 months 18 days | |||||||||
Interest expense | $ 470,512 | 246,937 | 180,589 | |||||||
General and administrative expense | 16,605 | 18,686 | $ 12,591 | |||||||
Above Market Lease Values | ||||||||||
Mortgage Loans On Real Estate [Line Items] | ||||||||||
Real estate estimated fair value | 17,886 | |||||||||
Real Estate | ||||||||||
Mortgage Loans On Real Estate [Line Items] | ||||||||||
Aggregate cost basis for federal income tax | 427,300 | 584,600 | 427,300 | |||||||
Land | ||||||||||
Mortgage Loans On Real Estate [Line Items] | ||||||||||
Real estate estimated fair value | 112,898 | |||||||||
Real estate owned | 123,100 | 235,998 | $ 123,100 | |||||||
Building And Improvements | ||||||||||
Mortgage Loans On Real Estate [Line Items] | ||||||||||
Real estate owned | 290,900 | |||||||||
Mixed-Use | ||||||||||
Mortgage Loans On Real Estate [Line Items] | ||||||||||
Purchase price allocated to intangible assets | $ 20,100 | |||||||||
Mixed-Use | In-place Lease values | ||||||||||
Mortgage Loans On Real Estate [Line Items] | ||||||||||
Purchase price allocated to intangible assets | 4,800 | |||||||||
Mixed-Use | Above Market Lease Values | ||||||||||
Mortgage Loans On Real Estate [Line Items] | ||||||||||
Purchase price allocated to intangible assets | 17,900 | |||||||||
Mixed-Use | Below Market Lease Values | ||||||||||
Mortgage Loans On Real Estate [Line Items] | ||||||||||
Purchase price allocated to intangible assets | 4,200 | |||||||||
Mixed-Use | Other Leases Values | ||||||||||
Mortgage Loans On Real Estate [Line Items] | ||||||||||
Purchase price allocated to intangible assets | 1,600 | |||||||||
Mixed-Use | New York | ||||||||||
Mortgage Loans On Real Estate [Line Items] | ||||||||||
Unpaid principal balance | 208,800 | |||||||||
Specific CECL reserves | $ 42,000 | |||||||||
Additional specific CECL reserve | 24,900 | |||||||||
Principal charge-off | 66,900 | |||||||||
Real estate estimated fair value | 148,200 | |||||||||
Transaction costs | $ 400 | |||||||||
Mixed-Use | New York | Minimum | ||||||||||
Mortgage Loans On Real Estate [Line Items] | ||||||||||
Discount rate | 7.30% | |||||||||
Market and terminal capitalization rate | 5% | |||||||||
Mixed-Use | New York | Maximum | ||||||||||
Mortgage Loans On Real Estate [Line Items] | ||||||||||
Discount rate | 7.50% | |||||||||
Market and terminal capitalization rate | 5.50% | |||||||||
Hotels | ||||||||||
Mortgage Loans On Real Estate [Line Items] | ||||||||||
Number of real estate properties acquired | Property | 7 | |||||||||
Hotels | New York | ||||||||||
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 | |||||||||
Out of period adjustments | $ 4,200 | |||||||||
Terminal capitalization rate | 6% | |||||||||
Hotels | New York | Minimum | ||||||||||
Mortgage Loans On Real Estate [Line Items] | ||||||||||
Discount rate | 8.50% | |||||||||
Hotels | New York | Maximum | ||||||||||
Mortgage Loans On Real Estate [Line Items] | ||||||||||
Discount rate | 8.75% | |||||||||
Hotels | New York | Mezzanine Loans | ||||||||||
Mortgage Loans On Real Estate [Line Items] | ||||||||||
Loan held by company | $ 103,900 | |||||||||
Hotels | New York | Senior Mortgage Loans | ||||||||||
Mortgage Loans On Real Estate [Line Items] | ||||||||||
Debt related to real estate owned, net | $ 300,000 | |||||||||
[1] Includes cash reserve balances. Includes cash reserve balances, if applicable. |
Real Estate Owned - Schedule of
Real Estate Owned - Schedule of Allocated Fair Value of Assets Acquired and Liabilities Assumed (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Property, Plant and Equipment [Line Items] | |
Total | $ 148,643 |
Above Market Lease Values | |
Property, Plant and Equipment [Line Items] | |
Total | 17,886 |
Land | |
Property, Plant and Equipment [Line Items] | |
Total | 112,898 |
Building | |
Property, Plant and Equipment [Line Items] | |
Total | 11,181 |
Capital Improvements | |
Property, Plant and Equipment [Line Items] | |
Total | 70 |
Tenant Improvements | |
Property, Plant and Equipment [Line Items] | |
Total | 4,414 |
In-place and Other Lease Values | |
Property, Plant and Equipment [Line Items] | |
Total | 6,403 |
Below Market Lease Values | |
Property, Plant and Equipment [Line Items] | |
Total | $ (4,209) |
Real Estate Owned - Schedule _2
Real Estate Owned - Schedule of Additional Detail of the Acquired Assets and Assumed Liabilities of Mixed-Use Property (Details) - Mixed-Use - NY $ in Thousands | Dec. 31, 2023 USD ($) | |
Business Acquisition [Line Items] | ||
Cash | $ 256 | |
Real estate owned | 128,563 | |
In-place, above market, and other lease values | 24,289 | [1] |
Other assets | 579 | |
Total assets acquired | 153,687 | |
Below market lease values | 4,209 | [2] |
Other liabilities | 7,616 | |
Total liabilities assumed | 11,825 | |
Assets acquired, net of liabilities assumed | $ 141,862 | |
[1] Included within other assets on our consolidated balance sheets. Included within other liabilities on our consolidated balance sheets. |
Real Estate Owned - Summary of
Real Estate Owned - Summary of additional detail related to the company's real estate owned, net (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Property Plant And Equipment [Line Items] | ||
Real estate owned | $ 546,999 | $ 416,343 |
Less: accumulated depreciation | (24,040) | (15,154) |
Real estate acquired through foreclosure, fair value | 522,959 | 401,189 |
Land | ||
Property Plant And Equipment [Line Items] | ||
Real estate owned | 235,998 | 123,100 |
Building | ||
Property Plant And Equipment [Line Items] | ||
Real estate owned | 295,651 | 284,400 |
Capital Improvements | ||
Property Plant And Equipment [Line Items] | ||
Real estate owned | 4,436 | 2,343 |
Tenant Improvements | ||
Property Plant And Equipment [Line Items] | ||
Real estate owned | 4,414 | |
Furniture, Fixtures and Equipment | ||
Property Plant And Equipment [Line Items] | ||
Real estate owned | $ 6,500 | $ 6,500 |
Real Estate Owned - Schedule _3
Real Estate Owned - Schedule of Revenues and Operating Expenses of Real Estate Owned Properties (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||
Total revenue from real estate owned | $ 79,190 | $ 63,470 | $ 27,984 |
Total operating expenses from real estate owned | 49,502 | 41,982 | 25,081 |
Hotel Portfolio | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||
Total revenue from real estate owned | 75,852 | 63,470 | 27,984 |
Total operating expenses from real estate owned | 47,274 | $ 41,982 | $ 25,081 |
Mixed-Use Property | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||
Total operating expenses from real estate owned | 2,228 | ||
Mixed-Use Property Fixed Rents | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||
Total revenue from real estate owned | 4,134 | ||
Mixed-Use Property Straight-line Rent Adjustment | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||
Total revenue from real estate owned | 87 | ||
Mixed-Use Property Variable Rents | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||
Total revenue from real estate owned | (175) | ||
Mixed-Use Property Amortization of Above And Below Market Leases, Net | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||
Total revenue from real estate owned | $ (708) |
Real Estate Owned - Schedule _4
Real Estate Owned - Schedule of Future Minimum Fixed Rents under Non-Cancellable Leases (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Real Estate Owned, Disclosure of Detailed Components [Abstract] | |
2024 | $ 8,312 |
2025 | 8,383 |
2026 | 8,415 |
2027 | 8,432 |
2028 | 8,323 |
Thereafter | 27,462 |
Total | $ 69,327 |
Real Estate Owned - Schedule _5
Real Estate Owned - Schedule of Lease Intangibles (Details) $ in Thousands | Dec. 31, 2023 USD ($) | |
Real Estate Owned, Disclosure of Detailed Components [Abstract] | ||
In-place, above market, and other lease values | $ 24,289 | |
Less: accumulated amortization | (1,296) | |
In-place, above market, and other lease values, net | 22,993 | |
Below market lease values | (4,209) | |
Less: accumulated amortization | 188 | |
Below market lease values, net | $ (4,021) | [1] |
[1] Amortization of above and below market lease values, net is recognized in revenue from real estate owned on our consolidated statements of operations. |
Real Estate Owned - Estimated A
Real Estate Owned - Estimated Amortization of Intangibles for Next Five Years (Details) $ in Thousands | Dec. 31, 2023 USD ($) | |
Real Estate Owned, Disclosure of Detailed Components [Abstract] | ||
2024 | $ 802 | [1] |
2025 | 802 | [1] |
2026 | 802 | [1] |
2027 | 802 | [1] |
2028 | 769 | [1] |
Thereafter | 2,025 | [1] |
In-place and other lease values, net | 6,002 | [1] |
2024 | (1,791) | [2] |
2025 | (1,791) | [2] |
2026 | (1,791) | [2] |
2027 | (1,791) | [2] |
2028 | (1,771) | [2] |
Thereafter | (8,056) | [2] |
Above market lease values, net | (16,991) | [2] |
2024 | 377 | [2] |
2025 | 377 | [2] |
2026 | 377 | [2] |
2027 | 377 | [2] |
2028 | 377 | [2] |
Thereafter | 2,136 | [2] |
Above market lease values, net | $ 4,021 | [2] |
[1] Amortization of in-place and other lease values is recognized in depreciation and amortization expense on our consolidated statements of operations. Amortization of above and below market lease values, net is recognized in revenue from real estate owned on our consolidated statements of operations. |
Debt Obligations - Summary of F
Debt Obligations - Summary of Financings (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | |
Short-Term Debt [Line Items] | |||
Capacity | $ 7,265,860 | $ 7,776,447 | |
Borrowing Outstanding | $ 5,694,025 | $ 5,688,361 | |
Weighted Average Spread | [1] | 3.03% | 2.75% |
Repurchase Agreements and Term Participation Facility [Member] | |||
Short-Term Debt [Line Items] | |||
Capacity | [2] | $ 5,709,907 | $ 5,700,000 |
Borrowing Outstanding | [2] | $ 4,271,112 | $ 4,012,818 |
Weighted Average Spread | [1],[2] | 2.76% | 2.25% |
Repurchase agreements - Side Car [Member] | |||
Short-Term Debt [Line Items] | |||
Capacity | [2],[3] | $ 271,171 | |
Borrowing Outstanding | [2],[3] | $ 211,572 | |
Weighted Average Spread | [1],[2],[3] | 4.51% | |
Loan Participants Sold [Member] | |||
Short-Term Debt [Line Items] | |||
Capacity | $ 120,634 | $ 264,252 | |
Borrowing Outstanding | $ 120,634 | $ 264,252 | |
Weighted Average Spread | [1] | 4.15% | 3.68% |
Notes Payable [Member] | |||
Short-Term Debt [Line Items] | |||
Capacity | $ 419,867 | $ 495,934 | |
Borrowing Outstanding | $ 286,827 | $ 154,629 | |
Weighted Average Spread | [1] | 3.10% | 3.09% |
Secured Term Loan [Member] | |||
Short-Term Debt [Line Items] | |||
Capacity | $ 725,452 | $ 755,090 | |
Borrowing Outstanding | $ 725,452 | $ 755,090 | |
Weighted Average Spread | [1] | 4.50% | 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 | [1] | 2.83% | 2.78% |
[1] Weighted average spread over the applicable benchmark rate is based on unpaid principal balance. SOFR as of December 31, 2023 was 5.35 % . LIBOR and SOFR as of December 31, 2022 were 4.39 % and 4.36 % , respectively. The repurchase agreements and term participation facility are partially recourse to us. As of December 31, 2023 and December 31, 2022 , the weighted average recourse on both our repurchase agreements and term participation facility was 30 % and 28 %, respectively. On July 28, 2023, the financings which comprised the Repurchase Agreements - Side Car were modified to remove any features that would distinguish them from other financings under the repurchase agreement with JP Morgan Chase Bank, N.A. Subsequently, such financings are presented within the repurchase agreements and term participation facility grouping. |
Debt Obligations - Summary of_2
Debt Obligations - Summary of Financings (Parenthetical) (Details) | 12 Months Ended | ||||
Dec. 31, 2023 | Dec. 31, 2022 | Feb. 08, 2021 | |||
Short-Term Debt [Line Items] | |||||
Weighted Average Interest Rate | 9% | [1] | 8.12% | [2] | |
Investment, Type [Extensible Enumeration] | Real Estate Investment [Member] | ||||
Recourse | |||||
Short-Term Debt [Line Items] | |||||
Weighted Average Interest Rate | 30% | ||||
Investment, Type [Extensible Enumeration] | Repurchase Agreements | ||||
Recourse | Term Participation Facility | |||||
Short-Term Debt [Line Items] | |||||
Weighted Average Interest Rate | 28% | ||||
One Month L I B O R | |||||
Short-Term Debt [Line Items] | |||||
Debt instrument basis spread on variable rate | 4.39% | ||||
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | |||||
Short-Term Debt [Line Items] | |||||
Debt instrument basis spread on variable rate | 5.35% | 4.36% | |||
[1] Reflects the weighted average interest rate based on the floating benchmark rate (if applicable), including SOFR floors (if applicable). Weighted average is based on outstanding principal as of December 31, 2023 and includes loans on non-accrual status. For loans placed on non-accrual, the interest rate used in calculating the weighted average interest rate 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, 2022 and includes loans on non-accrual status. For loans placed on non-accrual, the interest rate used in calculating the weighted average interest rate is 0 %. |
Debt Obligations - Summary of R
Debt Obligations - Summary of Repurchase Agreements (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2023 | Dec. 31, 2022 | ||||
Repurchase Agreement Counterparty [Line Items] | |||||
Repurchase agreements | $ 3,805,678 | $ 3,966,859 | |||
Carrying Value of Collateral | 340,069 | [1] | 631,311 | [2] | |
Repurchase Agreements and Term Participation Facility [Member] | |||||
Repurchase Agreement Counterparty [Line Items] | |||||
Maximum Capacity | 5,055,465 | 4,971,171 | |||
Repurchase agreements | 3,805,678 | 3,966,859 | |||
Undrawn Capacity | 1,249,787 | 1,004,312 | |||
Carrying Value of Collateral | $ 5,369,552 | [3] | $ 5,982,086 | [4] | |
Repurchase Agreements and Term Participation Facility [Member] | J P Morgan Chase Bank N A [Member] | |||||
Repurchase Agreement Counterparty [Line Items] | |||||
Initial Maturity | Jul. 28, 2026 | ||||
Fully Extended Maturity | [5] | Jul. 28, 2028 | |||
Maximum Capacity | $ 1,905,465 | ||||
Repurchase agreements | 1,672,878 | ||||
Undrawn Capacity | 232,587 | ||||
Carrying Value of Collateral | [3] | $ 2,257,442 | |||
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 | ||||
Fully Extended Maturity | [6] | Jun. 29, 2027 | |||
Maximum Capacity | $ 1,500,000 | ||||
Repurchase agreements | 1,272,079 | ||||
Undrawn Capacity | 227,921 | ||||
Carrying Value of Collateral | [4] | $ 1,815,531 | |||
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 | ||||
Fully Extended Maturity | [6] | May 27, 2024 | |||
Maximum Capacity | $ 271,171 | ||||
Repurchase agreements | 211,572 | ||||
Undrawn Capacity | 59,599 | ||||
Carrying Value of Collateral | [4] | $ 460,481 | |||
Repurchase Agreements and Term Participation Facility [Member] | Morgan Stanley Bank NA [Member] | |||||
Repurchase Agreement Counterparty [Line Items] | |||||
Initial Maturity | Jan. 26, 2024 | [7] | Jan. 26, 2024 | [8] | |
Fully Extended Maturity | Jan. 26, 2025 | [5] | Jan. 26, 2025 | [6],[8] | |
Maximum Capacity | $ 1,000,000 | $ 1,000,000 | [8] | ||
Repurchase agreements | 735,393 | 859,624 | [8] | ||
Undrawn Capacity | 264,607 | 140,376 | [8] | ||
Carrying Value of Collateral | $ 1,023,295 | [3] | $ 1,340,573 | [4],[8] | |
Repurchase Agreements and Term Participation Facility [Member] | Goldman Sachs Bank USA [Member] | |||||
Repurchase Agreement Counterparty [Line Items] | |||||
Initial Maturity | May 31, 2025 | [9] | May 31, 2024 | [10] | |
Fully Extended Maturity | May 31, 2027 | [5] | May 31, 2025 | [6],[10] | |
Maximum Capacity | $ 500,000 | $ 500,000 | [10] | ||
Repurchase agreements | 175,755 | 356,014 | [10] | ||
Undrawn Capacity | 324,245 | 143,986 | [10] | ||
Carrying Value of Collateral | $ 286,623 | [3] | $ 551,091 | [4],[10] | |
Repurchase Agreements and Term Participation Facility [Member] | Barclays Bank PLC [Member] | |||||
Repurchase Agreement Counterparty [Line Items] | |||||
Initial Maturity | Dec. 20, 2024 | Dec. 20, 2024 | |||
Fully Extended Maturity | Dec. 20, 2025 | [5] | Dec. 20, 2025 | [6] | |
Maximum Capacity | $ 500,000 | $ 500,000 | |||
Repurchase agreements | 135,129 | 176,384 | |||
Undrawn Capacity | 364,871 | 323,616 | |||
Carrying Value of Collateral | $ 250,823 | [3] | $ 269,973 | [4] | |
Repurchase Agreements and Term Participation Facility [Member] | Deutsche Bank AG New York Branch [Member] | |||||
Repurchase Agreement Counterparty [Line Items] | |||||
Initial Maturity | Jun. 26, 2024 | Jun. 26, 2023 | |||
Fully Extended Maturity | Jun. 26, 2026 | [5] | Jun. 26, 2026 | [6] | |
Maximum Capacity | $ 400,000 | $ 400,000 | |||
Repurchase agreements | 359,646 | 345,583 | |||
Undrawn Capacity | 40,354 | 54,417 | |||
Carrying Value of Collateral | $ 611,741 | [3] | $ 591,592 | [4] | |
Repurchase Agreements and Term Participation Facility [Member] | Wells Fargo Bank NA [Member] | |||||
Repurchase Agreement Counterparty [Line Items] | |||||
Initial Maturity | Sep. 29, 2024 | Sep. 29, 2023 | |||
Fully Extended Maturity | Sep. 29, 2026 | [5] | Sep. 29, 2026 | [6] | |
Maximum Capacity | $ 750,000 | $ 800,000 | |||
Repurchase agreements | 726,877 | 745,603 | |||
Undrawn Capacity | 23,123 | 54,397 | |||
Carrying Value of Collateral | $ 939,628 | [3] | $ 952,845 | [4] | |
[1] Includes cash reserve balances, if applicable. Includes cash reserve balances. Net of specific CECL reserves, if any. Net of specific CECL reserves, if any. 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 26, 2024 we exercised our option to extend the initial maturity of this facility from January 26, 2024 to January 26, 2025 . On January 24, 2023, we exercised our option to extend the initial maturity of this facility from January 26, 2023 to January 26, 2024 . Assumes as-of-right extension is exercised, subject to meeting prescribed conditions. 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) | Jan. 26, 2024 | Jan. 25, 2024 | Jan. 24, 2023 | Jan. 23, 2023 | Jan. 13, 2023 | Jan. 12, 2023 |
Repurchase Agreement Counterparty [Line Items] | ||||||
Contractual Maturity Date | Jan. 26, 2024 | Jan. 26, 2023 | May 31, 2024 | May 31, 2023 | ||
Subsequent Event | ||||||
Repurchase Agreement Counterparty [Line Items] | ||||||
Contractual Maturity Date | Jan. 26, 2025 | Jan. 26, 2024 |
Debt Obligations - Additional I
Debt Obligations - Additional Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||||||
Jan. 24, 2023 | Jan. 23, 2023 | Jan. 13, 2023 | Jan. 12, 2023 | Nov. 04, 2022 | Jun. 29, 2022 | Dec. 02, 2021 | Mar. 31, 2024 | Dec. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Feb. 08, 2021 | Dec. 01, 2020 | Aug. 09, 2019 | |
Debt Instrument [Line Items] | |||||||||||||||
Secured term loan | $ 325,000,000 | $ 450,000,000 | |||||||||||||
One-month SOFR | 4.50% | ||||||||||||||
Senior mortgage amount | $ 300,000,000 | ||||||||||||||
Gain on extinguishment of debt | $ 2,217,000 | ||||||||||||||
Contractual Maturity Date | Jan. 26, 2024 | Jan. 26, 2023 | May 31, 2024 | May 31, 2023 | |||||||||||
Interest expense | 470,512,000 | $ 246,937,000 | $ 180,589,000 | ||||||||||||
General and administrative expenses | $ 16,605,000 | $ 18,686,000 | $ 12,591,000 | ||||||||||||
Debt instrument, variable interest rate basis | 0 | 0 | |||||||||||||
Financing agreements, covenants description | Our financing agreements generally contain certain financial covenants. For example, our ratio of earnings before interest, taxes, depreciation, and amortization (“EBITDA”), to interest charges, as defined in the agreements, shall be not less than either 1.3 to 1.0 or 1.5 to 1.0. Further, (i) our tangible net worth, as defined in the agreements, shall not be less than $2.06 billion as of each measurement date plus 75% of proceeds from future equity issuances; (ii) cash liquidity shall not be less than the greater of (x) $50 million or (y) 5% of our recourse indebtedness; and (iii) our indebtedness shall not exceed 77.8% of our total assets. As of December 31, 2023 and 2022, we are in compliance with all covenants under our financing agreements. The requirements set forth in (i) through (iii) above are based upon the most restrictive financial covenants in place as of the reporting date. For the quarters ended December 31, 2023 and March 31, 2024, we modified certain of our EBITDA to interest charges covenants to provide for a minimum ratio of 1.3 to 1.0 for such covenants which previously required a minimum ratio of 1.4 to 1.0. Future compliance with our financial covenants is dependent upon the results of our operating activities, our financial condition, and the overall market conditions in which we and our borrowers operate. As market conditions evolve, we may work with our counterparties to request modifications of financial covenants as needed. | ||||||||||||||
Percentage of proceeds from future equity issuances added for tangible net worth | 75% | ||||||||||||||
Percentage of recourse indebtedness | 5% | ||||||||||||||
Percentage of total assets as indebtedness | 77.80% | ||||||||||||||
Investment, Type [Extensible Enumeration] | Real Estate Investment | ||||||||||||||
Minimum | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Ratio of earnings before interest, taxes, depreciation and amortization to interest charges | 1.30% | 1.30% | |||||||||||||
Tangible networth as of measurement date | $ 2,060,000,000 | ||||||||||||||
Cash liquidity amount to be maintained | $ 50,000,000 | $ 50,000,000 | |||||||||||||
Minimum | Scenario Forecast | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Ratio of earnings before interest, taxes, depreciation and amortization to interest charges | 1.40% | ||||||||||||||
Maximum | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Ratio of earnings before interest, taxes, depreciation and amortization to interest charges | 1.50% | ||||||||||||||
Secured Overnight Financing Rate (SOFR) | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
One month LIBOR/ SOFR rate | 5.35% | 4.36% | |||||||||||||
Secured Term Loan | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Principal payments | $ 1,900,000 | ||||||||||||||
Debt instrument purchased and retired amount | 22,000,000 | 22,000,000 | |||||||||||||
Loan repurchased, amount | 19,300,000 | 19,300,000 | |||||||||||||
Gain on extinguishment of debt | 2,200,000 | ||||||||||||||
Unamortized deferred financing costs | 500,000 | $ 500,000 | |||||||||||||
Contractual Maturity Date | Aug. 09, 2026 | Aug. 09, 2026 | |||||||||||||
Secured Term Loan | Secured Overnight Financing Rate (SOFR) | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
One month LIBOR/ SOFR rate | 5.35% | 4.36% | |||||||||||||
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% | ||||||||||||||
Short-Term Funding Facility | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Line of credit, maximum borrowing capacity | $ 150,000,000 | ||||||||||||||
Credit facility outstanding balance | 0 | $ 0 | $ 0 | ||||||||||||
Contractual Maturity Date | Jun. 29, 2025 | ||||||||||||||
Credit spread adjustment rate | 225 | ||||||||||||||
Line of credit facility increase | $ 500,000,000 | ||||||||||||||
Short-Term Funding Facility | Minimum | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Credit facility initial advance rate | 55% | ||||||||||||||
Short-Term Funding Facility | Maximum | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Credit facility initial advance rate | 75% | ||||||||||||||
Short-Term Funding Facility | Secured Overnight Financing Rate (SOFR) | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
One month LIBOR/ SOFR rate | 0.10% | ||||||||||||||
Term Participation Facility | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Term facility unpaid principal balance | 465,434,000 | $ 465,434,000 | $ 257,531,000 | ||||||||||||
Contractual Maturity Date | Oct. 11, 2028 | Dec. 21, 2027 | |||||||||||||
Term Participation Facility | Master Participation and Administration Agreement | Mortgage Loans | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Term facility maximum commitment | 654,400,000 | $ 654,400,000 | $ 481,400,000 | ||||||||||||
Term facility unpaid principal balance | $ 465,400,000 | $ 465,400,000 | $ 257,500,000 | ||||||||||||
Maturity period | 5 years | ||||||||||||||
Maturity date | Oct. 11, 2028 | ||||||||||||||
Maturity date | Nov. 04, 2023 |
Debt Obligations - Summary of T
Debt Obligations - Summary of Term Participation Facility (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||||
Jan. 24, 2023 | Jan. 23, 2023 | Jan. 13, 2023 | Jan. 12, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |||
Term Participations [Line Items] | ||||||||
Contractual Maturity Date | Jan. 26, 2024 | Jan. 26, 2023 | May 31, 2024 | May 31, 2023 | ||||
Carrying Value | $ 120,508 | $ 263,798 | ||||||
Carrying Value of Collateral | $ 340,069 | [1] | $ 631,311 | [2] | ||||
Term Participation Facility | ||||||||
Term Participations [Line Items] | ||||||||
Contractual Maturity Date | Oct. 11, 2028 | Dec. 21, 2027 | ||||||
Borrowing Outstanding | $ 465,434 | $ 257,531 | ||||||
Carrying Value | 465,434 | 257,531 | ||||||
Carrying Value of Collateral | $ 797,335 | $ 375,769 | ||||||
[1] Includes cash reserve balances, if applicable. Includes cash reserve balances. |
Debt Obligations - Summary of L
Debt Obligations - Summary of Loan Participations Sold (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||||||
Jan. 24, 2023 | Jan. 23, 2023 | Jan. 13, 2023 | Jan. 12, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | ||||
Loan Participations Sold [Line Items] | |||||||||
Contractual Maturity Date | Jan. 26, 2024 | Jan. 26, 2023 | May 31, 2024 | May 31, 2023 | |||||
Borrowing Outstanding | $ 120,634 | $ 264,252 | |||||||
Carrying Value | 120,508 | 263,798 | |||||||
Carrying Value of Collateral | $ 340,069 | [1] | $ 631,311 | [2] | |||||
Variable Loan One | |||||||||
Loan Participations Sold [Line Items] | |||||||||
Contractual Maturity Date | Oct. 18, 2024 | Aug. 01, 2023 | |||||||
Maximum Extension Date | Oct. 18, 2024 | Aug. 01, 2023 | |||||||
Borrowing Outstanding | $ 100,634 | $ 138,322 | |||||||
Carrying Value | 100,508 | 138,322 | |||||||
Carrying Value of Collateral | $ 182,723 | [1] | $ 281,123 | [2] | |||||
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 | ||||||||
Carrying Value of Collateral | [2] | $ 192,355 | |||||||
Fixed Loan | |||||||||
Loan Participations Sold [Line Items] | |||||||||
Contractual Maturity Date | Dec. 31, 2024 | [3] | Dec. 31, 2024 | ||||||
Maximum Extension Date | Dec. 31, 2025 | [3] | Dec. 31, 2025 | ||||||
Borrowing Outstanding | $ 20,000 | [3] | $ 20,000 | ||||||
Carrying Value | 20,000 | [3] | 19,831 | ||||||
Carrying Value of Collateral | $ 157,346 | [1],[3] | $ 157,833 | [2] | |||||
[1] Includes cash reserve balances, if applicable. Includes cash reserve balances. In January of 2024 the loan securing this financing, which is classified as held-for-sale as of December 31, 2023 , was sold and the financing was repaid in full. |
Debt Obligations - Summary of N
Debt Obligations - Summary of Notes Payable (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||||
Jan. 24, 2023 | Jan. 23, 2023 | Jan. 13, 2023 | Jan. 12, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | ||
Debt Instrument [Line Items] | |||||||
Contractual Maturity Date | Jan. 26, 2024 | Jan. 26, 2023 | May 31, 2024 | May 31, 2023 | |||
Borrowing Outstanding | $ 286,827 | $ 154,629 | |||||
Carrying Value | 283,341 | 149,521 | |||||
Carrying Value of Collateral | $ 401,856 | $ 237,711 | |||||
Notes Payable One | |||||||
Debt Instrument [Line Items] | |||||||
Contractual Maturity Date | Dec. 31, 2024 | [1] | Dec. 31, 2024 | ||||
Maximum Extension Date | Dec. 31, 2025 | [1] | Dec. 31, 2025 | ||||
Borrowing Outstanding | $ 110,714 | [1] | $ 103,592 | ||||
Carrying Value | 110,152 | [1] | 102,467 | ||||
Carrying Value of Collateral | $ 157,346 | [1] | $ 157,833 | ||||
Notes Payable Two | |||||||
Debt Instrument [Line Items] | |||||||
Contractual Maturity Date | Feb. 02, 2026 | Feb. 02, 2026 | |||||
Maximum Extension Date | Feb. 02, 2027 | Feb. 02, 2027 | |||||
Borrowing Outstanding | $ 50,418 | $ 28,288 | |||||
Carrying Value | 49,576 | 27,292 | |||||
Carrying Value of Collateral | $ 61,941 | $ 34,199 | |||||
Notes Payable Three | |||||||
Debt Instrument [Line Items] | |||||||
Contractual Maturity Date | Sep. 02, 2026 | Nov. 22, 2024 | |||||
Maximum Extension Date | Sep. 02, 2027 | Nov. 24, 2026 | |||||
Borrowing Outstanding | $ 46,267 | $ 16,055 | |||||
Carrying Value | 45,063 | 15,497 | |||||
Carrying Value of Collateral | $ 64,270 | $ 25,403 | |||||
Notes Payable Four | |||||||
Debt Instrument [Line Items] | |||||||
Contractual Maturity Date | Nov. 22, 2024 | Jun. 30, 2025 | |||||
Maximum Extension Date | Nov. 24, 2026 | Jun. 30, 2026 | |||||
Borrowing Outstanding | $ 39,504 | $ 4,777 | |||||
Carrying Value | 39,237 | 4,354 | |||||
Carrying Value of Collateral | $ 52,662 | $ 16,290 | |||||
Notes Payable Five | |||||||
Debt Instrument [Line Items] | |||||||
Contractual Maturity Date | Oct. 13, 2025 | Oct. 13, 2025 | |||||
Maximum Extension Date | Oct. 13, 2026 | Oct. 13, 2026 | |||||
Borrowing Outstanding | $ 39,924 | $ 1,917 | |||||
Carrying Value | 39,313 | 1,145 | |||||
Carrying Value of Collateral | $ 65,637 | $ 5,749 | |||||
Notes Payable Six | |||||||
Debt Instrument [Line Items] | |||||||
Contractual Maturity Date | Sep. 02, 2026 | ||||||
Maximum Extension Date | Sep. 02, 2027 | ||||||
Carrying Value | $ (1,234) | ||||||
Carrying Value of Collateral | $ (1,763) | ||||||
[1] In January of 2024 the loan securing this financing, which is classified as held-for-sale as of December 31, 2023 , was sold and the financing was repaid in full. |
Debt Obligations - Summary of S
Debt Obligations - Summary of Secured Term Loan (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||||
Jan. 24, 2023 | Jan. 23, 2023 | Jan. 13, 2023 | Jan. 12, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |||
Secured Term Loan [Line Items] | ||||||||
Contractual Maturity Date | Jan. 26, 2024 | Jan. 26, 2023 | May 31, 2024 | May 31, 2023 | ||||
Borrowing Outstanding | $ 286,827 | $ 154,629 | ||||||
Carrying Value | $ 120,508 | $ 263,798 | ||||||
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 | 9.95% | 8.96% | ||||||
Borrowing Outstanding | $ 725,452 | $ 755,090 | ||||||
Carrying Value | $ 712,576 | $ 736,853 | ||||||
[1] One-month term SOFR at December 31, 2023 was 5.35 % . One-month term SOFR at December 31, 2022 was 4.36 % . |
Debt Obligations - Summary of_4
Debt Obligations - Summary of Secured Term Loan (Parenthetical) (Details) - Secured Overnight Financing Rate (SOFR) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Secured Term Loan [Line Items] | ||
One month LIBOR/ SOFR rate | 5.35% | 4.36% |
Secured Term Loan | ||
Secured Term Loan [Line Items] | ||
One month LIBOR/ SOFR rate | 5.35% | 4.36% |
Debt Obligations - Summary of D
Debt Obligations - Summary of Debt Related To Real Estate Owned (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||||
Jan. 24, 2023 | Jan. 23, 2023 | Jan. 13, 2023 | Jan. 12, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |||
Debt Instrument Real Estate Owned Net [Line Items] | ||||||||
Contractual Maturity Date | Jan. 26, 2024 | Jan. 26, 2023 | May 31, 2024 | May 31, 2023 | ||||
Carrying Value | $ 120,508 | $ 263,798 | ||||||
Real Estate Investment | ||||||||
Debt Instrument Real Estate Owned Net [Line Items] | ||||||||
Contractual Maturity Date | Feb. 09, 2024 | [1] | Feb. 09, 2024 | |||||
Stated | S + 2.83 | [2] | L + 2.78% | [3] | ||||
Debt Instrument Interest Rate | 5.83% | [2] | 5.78% | [3] | ||||
Borrowing Outstanding | $ 290,000 | $ 290,000 | ||||||
Carrying Value | $ 289,913 | $ 289,389 | ||||||
[1] On February 7, 2024, we modified this loan agreement to provide for, among other things, an extension of the contractual maturity date to November 9, 2024 , a $ 10.0 million principal paydown, and partial recourse to us. Concurrent with this modification, we purchased an interest rate cap for $ 0.5 million which provides for a strike rate of 5.00 % through the extended contractual maturity date. Effective July 1, 2023, interest on our debt related to real estate owned is indexed to SOFR. SOFR at December 31, 2023 was 5.35 % , whi ch exceeded the 3.00 % ceiling provided by our interest rate cap. See Note 7 - Derivatives for further detail. LIBOR at December 31, 2022 was 4.39 % , which exceeded the 3.00 % ceiling provided by our interest rate cap. See Note 7 – Derivatives for further detail . |
Debt Obligations - Summary of_5
Debt Obligations - Summary of Debt Related To Real Estate Owned (Parenthetical) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Feb. 07, 2024 | Dec. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |
Debt Instrument Real Estate Owned Net [Line Items] | ||||
Debt instrument extended maturity date | Jun. 10, 2024 | Sep. 18, 2023 | ||
Interest Rate Cap | Subsequent Event | ||||
Debt Instrument Real Estate Owned Net [Line Items] | ||||
Purchase of interest rate cap | $ 0.5 | |||
One Month L I B O R | ||||
Debt Instrument Real Estate Owned Net [Line Items] | ||||
Debt instrument basis spread on variable rate | 4.39% | |||
Real Estate Investment | ||||
Debt Instrument Real Estate Owned Net [Line Items] | ||||
Debt instrument extended maturity date | Nov. 09, 2024 | |||
Real Estate Investment | Subsequent Event | ||||
Debt Instrument Real Estate Owned Net [Line Items] | ||||
Outstanding principal balance | $ 10 | |||
Real Estate Investment | Interest Rate Cap | ||||
Debt Instrument Real Estate Owned Net [Line Items] | ||||
Debt instrument basis spread on variable rate | 3% | |||
Real Estate Investment | Interest Rate Cap | Subsequent Event | ||||
Debt Instrument Real Estate Owned Net [Line Items] | ||||
Debt instrument basis spread on variable rate | 5% | |||
Purchase of interest rate cap | $ 0.5 | |||
Real Estate Investment | One Month L I B O R | ||||
Debt Instrument Real Estate Owned Net [Line Items] | ||||
Debt instrument basis spread on variable rate | 4.39% | |||
Real Estate Investment | One Month SOFR | ||||
Debt Instrument Real Estate Owned Net [Line Items] | ||||
Debt instrument basis spread on variable rate | 5.35% | |||
Real Estate Investment | One Month SOFR | Interest Rate Cap | ||||
Debt Instrument Real Estate Owned Net [Line Items] | ||||
Debt instrument basis spread on variable rate | 3% |
Debt Obligations - Summary of I
Debt Obligations - Summary of Interest Expense and Amortization (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Debt Disclosure [Abstract] | ||||
Interest expense on secured financings | $ 376,007 | $ 178,036 | $ 113,300 | |
Interest expense on secured term loan | 72,055 | 48,756 | 46,038 | |
Amortization of deferred financing costs | 22,450 | 20,145 | 21,251 | |
Interest and related expense | 470,512 | 246,937 | 180,589 | |
Interest expense on debt related to real estate owned | [1] | 23,630 | 14,170 | 15,643 |
Total interest and related expense | $ 494,142 | $ 261,107 | $ 196,232 | |
[1] Interest expense on debt related to real estate owned includes $ 524,000 , $ 309,000 , and $ 56,000 of amortization of deferred financing costs for the years ended December 31, 2023, 2022, and 2021 , respectively. |
Debt Obligations - Summary of_6
Debt Obligations - Summary of Interest Expense and Amortization (Parenthetical) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |||
Amortization of financing costs included in Interest on debt related to real estate owned | $ 524,000 | $ 309,000 | $ 56,000 |
Derivatives - Additional Inform
Derivatives - Additional Information (Details) - Interest Rate Cap - USD ($) | 12 Months Ended | ||||
Feb. 07, 2024 | Jun. 02, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Derivatives Fair Value Line Items | |||||
Derivative liability notional amount | $ 290,000,000 | ||||
Derivative maturity date | Feb. 15, 2024 | ||||
Derivative fee paid | $ 275,000 | ||||
Strike rate | 3% | ||||
Fair value of interest rate cap | $ 900,000 | $ 6,000,000 | |||
Proceeds from interest rate cap | $ 6,100,000 | $ 500,000 | $ 0 | ||
Subsequent Event | |||||
Derivatives Fair Value Line Items | |||||
Purchase of interest rate cap | $ 500,000 | ||||
Strike rate | 5% | ||||
Maximum | |||||
Derivatives Fair Value Line Items | |||||
Maximum interest rate of debt related to real estate owned | 5.83% |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Level 2 [Member] | Interest Rate Cap [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fair value amount | $ 0.9 | $ 6 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Financial Instruments Measured at Carrying And Estimated Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Loans receivable held-for-investment, net | $ 6,877,425 | $ 7,360,427 |
Loans receivable held-for-sale | 261,709 | |
Repurchase agreements | 3,805,678 | 3,966,859 |
Term participation facility | 465,434 | 257,531 |
Loan participations sold, net | 120,508 | 263,798 |
Notes payable, net | 283,341 | 149,521 |
Secured term loan, net | 712,576 | 736,853 |
Debt related to real estate owned, net | 289,913 | 289,389 |
Unpaid Principal Balance [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Loans receivable held-for-investment, net | 7,044,524 | 7,538,525 |
Loans receivable held-for-sale | 264,065 | |
Repurchase agreements | 3,805,678 | 3,966,859 |
Term Participation Facility | 465,434 | 257,531 |
Loan participations sold, net | 120,634 | 264,252 |
Notes payable, net | 286,827 | 154,629 |
Secured term loan, net | 725,452 | 755,090 |
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 | 6,875,377 | 7,331,207 |
Loans receivable held-for-sale | 261,709 | |
Repurchase agreements | 3,805,678 | 3,966,859 |
Term Participation Facility | 463,010 | 255,296 |
Loan participations sold, net | 120,000 | 261,417 |
Notes payable, net | 284,904 | 153,282 |
Secured term loan, net | 694,620 | 743,764 |
Debt related to real estate owned, net | 289,422 | 281,568 |
Level 3 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Loans receivable held-for-investment, net | 6,875,377 | 7,331,207 |
Loans receivable held-for-sale | 261,709 | |
Repurchase agreements | 3,805,678 | 3,966,859 |
Term Participation Facility | 463,010 | 255,296 |
Loan participations sold, net | 120,000 | 261,417 |
Notes payable, net | 284,904 | 153,282 |
Secured term loan, net | 694,620 | 743,764 |
Debt related to real estate owned, net | $ 289,422 | $ 281,568 |
Equity - Additional Information
Equity - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Class Of Stock [Line Items] | ||||
Common stock authorized | 500,000,000 | 500,000,000 | ||
Common stock par value | $ 0.01 | $ 0.01 | ||
Common stock, shares issued | 138,745,357 | 140,055,714 | ||
Common stock outstanding | 138,745,357 | 138,376,144 | ||
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, shares issued | 138,745,357 | 140,055,714 | ||
Common stock outstanding | 138,745,357 | 138,376,144 | 139,840,088 | 132,848,720 |
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 Outstanding (Details) - shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Class Of Stock [Line Items] | |||
Beginning balance | 138,376,144 | ||
Ending balance | 138,745,357 | 138,376,144 | |
Common Stock [Member] | |||
Class Of Stock [Line Items] | |||
Beginning balance | 138,376,144 | 139,840,088 | 132,848,720 |
Redeemable common stock issued | 0 | 0 | 5,524,934 |
Conversion of fully vested RSUs to common stock | 369,213 | 0 | 1,682,060 |
Repurchase of common stock | 0 | (1,463,944) | (215,626) |
Ending balance | 138,745,357 | 138,376,144 | 139,840,088 |
Equity - Schedule of Common S_2
Equity - Schedule of Common Stock Issued and Outstanding (Parenthetical) (Details) - shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
RSUs | |||
Class Of Stock [Line Items] | |||
Shares vested | 41,780 | 6,850 | 0 |
Equity - Summary of Dividends D
Equity - Summary of Dividends Declared For Common And Preferred Stock (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Class Of Stock [Line Items] | |||||||||||
Dividends declared - common stock | $ 175,486 | ||||||||||
Dividends declared - preferred stock | $ 208,350 | $ 194,961 | |||||||||
Record Date - common stock | Dec. 29, 2023 | Sep. 29, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 30, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | |||
Payment Date - common stock | Jan. 12, 2024 | Oct. 13, 2023 | Jul. 14, 2023 | Apr. 14, 2023 | Jan. 13, 2023 | Oct. 14, 2022 | Jul. 15, 2022 | Apr. 15, 2022 | |||
Common Stock [Member] | |||||||||||
Class Of Stock [Line Items] | |||||||||||
Dividends declared - common stock | $ 34,686 | $ 34,682 | $ 51,203 | $ 51,199 | $ 51,502 | $ 51,420 | $ 51,659 | $ 51,672 | |||
Dividends declared - common stock per share | $ 0.25 | $ 0.25 | $ 0.37 | $ 0.37 | $ 0.37 | $ 0.37 | $ 0.37 | $ 0.37 | |||
Preferred Stock [Member] | |||||||||||
Class Of Stock [Line Items] | |||||||||||
Dividends declared - preferred stock | $ 16 |
Earnings per Share - Additional
Earnings per Share - Additional Information (Details) - shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Dilutive securities | 0 | 0 | 0 |
Weighted Average RSUs | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Dilutive securities | 2,637,717 | 1,190,126 | 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, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Earnings Per Share [Abstract] | ||||
Net income attributable to common stockholders | $ 6,027 | $ 112,064 | $ 170,537 | |
Dividends on participating securities | [1] | (3,681) | (2,397) | |
Basic earnings | $ 2,346 | $ 109,667 | $ 170,537 | |
Weighted-average shares of common stock outstanding - basic | [2] | 138,617,043 | 139,306,311 | 134,539,645 |
Weighted-average shares of common stock outstanding - diluted | [2] | 138,617,043 | 139,306,311 | 134,539,645 |
Net income per share of common stock - basic | $ 0.02 | $ 0.79 | $ 1.27 | |
Net income per share of common stock - diluted | $ 0.02 | $ 0.79 | $ 1.27 | |
[1] For the years ended December 31, 2023, 2022, and 2021, dividends on participating securities ex cludes $ 35,000 , $ 3,600 , and $ 0 of dividends on fully vested RSUs. Amounts as of December 31, 2023, 2022, and 2021 include 41,780 , 6,850 , and 0 fully vested RSUs, respectively. |
Earnings per Share - Schedule_2
Earnings per Share - Schedule of Basic and Diluted Earning per Share (Parenthetical) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Earnings Per Share Diluted [Line Items] | |||
Dividends on fully vested RSU | $ 35,000 | $ 3,600 | $ 0 |
RSUs | |||
Earnings Per Share Diluted [Line Items] | |||
Shares vested | 41,780 | 6,850 | 0 |
Related Party Transactions - Su
Related Party Transactions - Summary of Management and Incentive Fees (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |||
Management fees - affiliate | $ 38,153 | $ 39,461 | $ 39,135 |
Incentive fees - affiliate | 1,558 | ||
Total | $ 39,711 | $ 39,461 | $ 39,135 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Related Party Transaction [Line Items] | ||||
Annual base management fee percentage | 1.50% | |||
Base management fee payable to affiliate | $ 9,315,000 | $ 9,867,000 | ||
Management fee, description | Effective October 1, 2015, our Manager earns a base management fee in an amount equal to 1.50% per annum of Stockholders’ Equity, as defined in the Management Agreement. Management fees are reduced by our pro rata share of any management fees and incentive fees (if incentive fees are not incurred by us) incurred to our Manager by CMTG/TT. Management fees are paid quarterly, in arrears, and $9.3 million, and $9.9 million were accrued and were included in management fee payable – affiliate on our consolidated balance sheets at December 31, 2023 and 2022, respectively.On August 2, 2022 our Management Agreement was amended and restated, primarily to provide for reimbursement of allocable costs, including compensation of our Manager’s non-investment professionals, to provide for automatic one-year renewals of the agreement following its original expiration date, unless it is otherwise terminated by our Board, and to remove historical provisions that are no longer relevant to our business and certain reporting requirements that are not customary for a public company. | |||
Incentive fee rate | 20% | |||
Minimum percentage of incentive fee to be paid in return on stockholders’ equity | 7% | |||
Incentive fees, description | 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. Incentive fees are reduced by our pro rata share of any incentive fees incurred to our Manager by CMTG/TT. | |||
Incentive fee payable - affiliate | $ 0 | 0 | ||
Termination fee, description | If we elect to terminate the Management Agreement, we are required to pay our 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 | $ 47,368,000 | 59,223,000 | ||
Loan receivable related party unpaid principal balance | 97,800,000 | |||
Loan commitment related party | 141,100,000 | |||
Repayment of loans | $ 113,000,000 | |||
Outstanding principal balance | $ 261,709,000 | |||
Affiliate Shareholder | ||||
Related Party Transaction [Line Items] | ||||
Related party ownership of common stock | 10.90% | |||
Reimbursements | ||||
Related Party Transaction [Line Items] | ||||
General and administrative expense | $ 4,100,000 | 1,300,000 | $ 0 | |
Other liabilities | $ 1 | $ 700,000 | ||
CMTG/TT | ||||
Related Party Transaction [Line Items] | ||||
Incentive fee rate | 3.33% | |||
Minimum percentage of incentive fee to be paid in return on stockholders’ equity | 7% |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||
Jun. 01, 2023 | Mar. 30, 2023 | Jun. 14, 2022 | Jun. 01, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Unrecognized compensation expense | $ 28,700,000 | ||||||||
Unrecognized compensation expense expected to recognized over a remaining period | 1 year 9 months 18 days | ||||||||
Time Based Restricted Stock Units | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Shares granted | 1,167,354 | 2,159,280 | |||||||
Weighted average grant-date fair value per share | $ 18.74 | ||||||||
Shares forfeitures | 51,167 | ||||||||
Shares vested | 749,265 | ||||||||
Adjustment to additional paid in capital for shares vested | $ 3,900,000 | ||||||||
Time Based Restricted Stock Units | Employees | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Shares granted | 1,100,000 | 2,130,000 | |||||||
Weighted average grant-date fair value per share | $ 11.3 | $ 18.72 | |||||||
Time Based Restricted Stock Units | Non-Employee Board Members | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Shares granted | 58,536 | 29,280 | |||||||
Weighted average grant-date fair value per share | $ 10.25 | $ 20.49 | |||||||
Shares vested | 29,280 | 703,318 | |||||||
Time Based Restricted Stock Units | Director | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Conversion Of Fully Vested R S Us To Common Shares | 9,760 | 342,786 | 0 | ||||||
RSUs | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Stock-based compensation | $ 16,600,000 | $ 7,500,000 | $ 8,800,000 | ||||||
Shares vested | 41,780 | 6,850 | 0 | ||||||
RSUs | Non-Employee Board Members | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Stock-based compensation | $ 186,000 | $ 98,000 | $ 0 | ||||||
Number of shares issued | 15,410 | 6,850 | 0 | ||||||
2016 Incentive Award Plan | Maximum | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||||
Remaining number of shares that may be issued | 4,983,900 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Time-Based Restricted Stock Units Activity (Details) - Time Based Restricted Stock Units - $ / shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Number of Restricted Shares, Unvested beginning balance | 2,159,280 | |
Number of Restricted Shares, Granted | 1,167,354 | 2,159,280 |
Number of Restricted Shares, Vested | (749,265) | |
Number of Restricted Shares, Forfeited/cancelled | (51,167) | |
Number of Restricted Shares, Unvested ending balance | 2,526,202 | 2,159,280 |
Grant Date Fair Value Per Share, Unvested beginning balance | $ 18.74 | |
Grant Date Fair Value Per Share, Granted | 11.25 | $ 18.74 |
Grant Date Fair Value Per Share, Vested | (18.79) | |
Grant Date Fair Value Per Share, Forfeited/cancelled | 16.52 | |
Grant Date Fair Value Per Share, Unvested ending balance | $ 15.31 | $ 18.74 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule Of Income Loss Before Income Taxes [Line Items] | |||
Deferred tax asset | $ 21,700,000 | $ 16,600,000 | |
Valuation allowance | 21,700,000 | 16,600,000 | |
Uncertain tax positions | 0 | 0 | |
Investment basis difference in real estate owned | 4,200,000 | 4,000,000 | |
Net operating loss carryforward | 17,800,000 | 14,700,000 | |
Net unrealized gain | $ 300,000 | 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% |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Tax Treatment for Common Stock Dividends (Details) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Ordinary dividends | 30.90% | 100% | 98.20% |
Capital gain dividends | 0% | 0% | 1.80% |
Nondividend distributions | 69.10% | 0% | 0% |
Total | 100% | 100% | 100% |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Loss Contingencies [Line Items] | ||
Return of capital distribution from CMTG/CN Mortgage REIT LLC | $ 123.3 | $ 111.1 |
Unfunded loan commitments | $ 1,100 | $ 1,900 |
Maximum | ||
Loss Contingencies [Line Items] | ||
Loan maturity period | 5 years | 5 years |
Claros Mortgage Trust | ||
Loss Contingencies [Line Items] | ||
Commitment Interest | 51% | |
Commitment Amount | $ 124.9 | |
Loan Repayment Period | 6 months | |
Company Contribution Amount | $ 163.1 | $ 163.1 |
Remaining Capital Commitment | $ 72.9 | $ 72.9 |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of Contractual Maturity Payment (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Commitments and Contingencies Disclosure [Abstract] | ||
2024 | $ 2,560,418 | |
2025 | 1,751,360 | |
2026 | 1,382,247 | |
2027 | 0 | |
2028 | 0 | |
Long term debt | 5,694,025 | |
2024 | 1,203,123 | |
2025 | 1,203,080 | |
2026 | 1,907,782 | |
2027 | 1,089,578 | |
2028 | 290,462 | |
Long-term Debt | $ 5,694,025 | $ 5,688,361 |
Commitments and Contingencies_3
Commitments and Contingencies - Schedule of Contractual Maturity Payment (Parenthetical) (Details) - Extended Maturity Date in 2024 $ in Millions | 12 Months Ended |
Dec. 31, 2023 USD ($) Loan | |
Loss Contingencies [Line Items] | |
Number of loans outstanding in maturity default | Loan | 5 |
Borrowing outstanding maturity default | $ 250.7 |
Unpaid principal balance maturity default | $ 498.1 |
Number of loans outstanding in held-for-sale | Loan | 2 |
Borrowing outstanding held for sale | $ 184.2 |
Unpaid principal balance held-for-sale | $ 234.8 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) - Loan | 1 Months Ended | |
Jan. 31, 2024 | Feb. 08, 2021 | |
Subsequent Event [Line Items] | ||
Investment, Type [Extensible Enumeration] | Real Estate Investment [Member] | |
Subsequent Event | ||
Subsequent Event [Line Items] | ||
Number of loans sold to an unaffiliated purchaser | 3 | |
Investment, Type [Extensible Enumeration] | Senior Loans [Member] |
Segment Reporting - Schedule of
Segment Reporting - Schedule of Performance Based Segment Reporting Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue | |||
Interest and related income | $ 697,874 | $ 470,668 | $ 415,263 |
Less: interest and related expense | 470,512 | 246,937 | 180,589 |
Net interest income | 227,362 | 223,731 | 234,674 |
Total net revenue | 306,552 | 287,201 | 262,658 |
Management fees - affiliate | 38,153 | 39,461 | 39,135 |
Incentive fees - affiliate | 1,558 | ||
Equity compensation | 16,599 | 7,457 | 8,812 |
General and administrative expenses | 16,605 | 18,686 | 12,591 |
Total expenses | 155,334 | 129,797 | 108,375 |
Provision For Loan Losses | (153,700) | (84,400) | |
Gain on foreclosure of real estate owned | 4,162 | 1,430 | |
Total other income (loss) | $ 5,855 | ||
Total Assets as of December 31, 2021 | $ 8,069,361 | $ 8,241,513 |
Schedule IV - Mortgage Loans _2
Schedule IV - Mortgage Loans on Real Estate (Details) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2023 USD ($) Loan | Dec. 31, 2022 USD ($) Loan | ||||
Mortgage Loans On Real Estate [Line Items] | |||||
Number of Loans | Loan | 65 | 77 | |||
Principal Balance | $ 7,044,524 | $ 7,538,525 | |||
Principal Balance | [1] | 7,316,057 | |||
Carrying Amount of Loans | [1],[2],[3] | 7,209,505 | |||
Principal Amount of Loans Subject to Delinquent Principal or Interest | [1] | 773,750 | |||
Carrying value gross | 6,947,796 | [4] | 7,428,774 | [5] | |
General CECL reserve | [1],[2],[3] | (70,371) | |||
Total loans after allowance for loan losses | [1],[2],[3] | 7,139,134 | |||
Total loans after allowance for loan losses | 6,877,425 | [4] | $ 7,360,427 | [5] | |
Senior Mortgage Loan | |||||
Mortgage Loans On Real Estate [Line Items] | |||||
Principal Balance | [1] | 1,281,157 | |||
Carrying Amount of Loans | [1],[2],[3] | 1,280,088 | |||
Principal Amount of Loans Subject to Delinquent Principal or Interest | [1] | $ 0 | |||
Senior Mortgage Loan | Multifamily/Northeast [Member] | |||||
Mortgage Loans On Real Estate [Line Items] | |||||
Description/Location | [1] | Multifamily/Northeast | |||
Interest Payment Rates | [1],[6] | 2.75% | |||
Periodic Payment Terms | [1],[7] | I/O | |||
Principal Balance | [1] | $ 390,000 | |||
Carrying Amount of Loans | [1],[2],[3] | $ 389,508 | |||
Senior Mortgage Loan | Multifamily/Northeast [Member] | Maximum | |||||
Mortgage Loans On Real Estate [Line Items] | |||||
Maximum Maturity Date | [1],[8] | 2026 | |||
Senior Mortgage Loan | Multi Family/ West [Member] | |||||
Mortgage Loans On Real Estate [Line Items] | |||||
Description/Location | [1] | Multifamily/West | |||
Interest Payment Rates | [1],[6] | 3.01% | |||
Periodic Payment Terms | [1],[7] | I/O | |||
Principal Balance | [1] | $ 401,157 | |||
Carrying Amount of Loans | [1],[2],[3] | $ 399,441 | |||
Senior Mortgage Loan | Multi Family/ West [Member] | Maximum | |||||
Mortgage Loans On Real Estate [Line Items] | |||||
Maximum Maturity Date | [1],[8] | 2027 | |||
Senior Mortgage Loan | Hospitality/Northeast [Member] | |||||
Mortgage Loans On Real Estate [Line Items] | |||||
Description/Location | [1] | Hospitality/Northeast | |||
Interest Payment Rates | [1],[6] | 6.25% | |||
Periodic Payment Terms | [1],[7] | I/O | |||
Principal Balance | [1] | $ 265,000 | |||
Carrying Amount of Loans | [1],[2],[3] | $ 266,350 | |||
Senior Mortgage Loan | Hospitality/Northeast [Member] | Maximum | |||||
Mortgage Loans On Real Estate [Line Items] | |||||
Maximum Maturity Date | [1],[8] | 2028 | |||
Senior Mortgage Loan | Hospitality/Southeast [Member] | |||||
Mortgage Loans On Real Estate [Line Items] | |||||
Description/Location | [1] | Hospitality/Southeast | |||
Interest Payment Rates | [1],[6] | 4.91% | |||
Periodic Payment Terms | [1],[7] | I/O | |||
Principal Balance | [1] | $ 225,000 | |||
Carrying Amount of Loans | [1],[2],[3] | $ 224,789 | |||
Senior Mortgage Loan | Hospitality/Southeast [Member] | Maximum | |||||
Mortgage Loans On Real Estate [Line Items] | |||||
Maximum Maturity Date | [1],[8] | 2026 | |||
Senior Mortgage Loan [Member] | Various [Member] | |||||
Mortgage Loans On Real Estate [Line Items] | |||||
Description/Location | [1] | Various | |||
Number of Loans | Loan | [1] | 61 | |||
Periodic Payment Terms | [1],[7] | I/O | |||
Principal Balance | [1] | $ 5,878,814 | |||
Carrying Amount of Loans | [1],[2],[3] | 5,774,287 | |||
Principal Amount of Loans Subject to Delinquent Principal or Interest | [1] | $ 772,864 | |||
Senior Mortgage Loan [Member] | Various [Member] | Minimum | |||||
Mortgage Loans On Real Estate [Line Items] | |||||
Interest Payment Rates | [1],[6] | 2.75% | |||
Maximum Maturity Date | [1],[8] | 2020 | |||
Senior Mortgage Loan [Member] | Various [Member] | Maximum | |||||
Mortgage Loans On Real Estate [Line Items] | |||||
Interest Payment Rates | [1],[6] | 10.50% | |||
Maximum Maturity Date | [1],[8] | 2028 | |||
Mezzanine Loan | Various [Member] | |||||
Mortgage Loans On Real Estate [Line Items] | |||||
Description/Location | [1] | Various | |||
Number of Loans | Loan | [1] | 3 | |||
Interest Payment Rates | [1],[6] | 12.86% | |||
Periodic Payment Terms | [1],[7] | I/O | |||
Principal Balance | [1] | $ 156,086 | |||
Carrying Amount of Loans | [1],[2],[3] | 155,130 | |||
Principal Amount of Loans Subject to Delinquent Principal or Interest | [1] | $ 886 | |||
Mezzanine Loan | Various [Member] | Minimum | |||||
Mortgage Loans On Real Estate [Line Items] | |||||
Maximum Maturity Date | [1],[8] | 2022 | |||
Mezzanine Loan | Various [Member] | Maximum | |||||
Mortgage Loans On Real Estate [Line Items] | |||||
Maximum Maturity Date | [1],[8] | 2027 | |||
[1] Table includes loans receivable classified as held-for-sale as of December 31, 2023 . See Note 3 - Loan Portfolio for further detail. Includes specific CECL reserve of $ 72.6 million. The tax basis of the loans included above is $ 7,021,850 as of December 31, 2023 . Net of specific CECL reserves of $ 72.6 million. Net of specific CECL reserves of $ 60.3 million. As a spread over one month SOFR. SOFR as of December 31, 2023 was 5.35% . 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, 2023 USD ($) | |
Mortgage Loans On Real Estate [Line Items] | |
Tax basis | $ 7,021,850 |
Specific CECL reserve | $ 72,600 |
Schedule IV - Reconciliation of
Schedule IV - Reconciliation of Mortgage Loans on Real Estate (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Abstract] | ||||
Balance at January 1, | [1],[2] | $ 7,360,427 | $ 6,502,145 | |
Fundings on new and existing loans | [1] | 769,710 | 2,647,363 | [2] |
Non-cash advances in lieu of interest | [1] | 63,632 | 80,878 | [2] |
Accretion of fees | [1] | 22,809 | 24,967 | [2] |
Gain on sale of loan | [1],[2] | 30,701 | ||
Repayments of loans, including proceeds from loan sales | [1] | (771,077) | (1,810,438) | [2] |
Origination fees, extension fees, and exit fees received | [1] | (2,833) | (42,039) | [2] |
Transfer to real estate owned | [1] | (141,862) | ||
Transfer to loans held-for-sale | [1] | (261,709) | ||
Provision for current expected credit losses (2) | [1],[3] | (161,672) | (73,150) | [2] |
Balance at December 31, | [1] | $ 6,877,425 | $ 7,360,427 | [2] |
[1] Includes Mortgage and Mezzanine loans. Includes interest in loans receivable held-for-investment. See Note 3 – Loan Portfolio of the consolidated financial statements for information on current expected credit losses. |