Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2024 | Aug. 02, 2024 | |
Cover [Abstract] | ||
Entity Registrant Name | Claros Mortgage Trust, Inc. | |
Entity Central Index Key | 0001666291 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jun. 30, 2024 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Trading Symbol | CMTG | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 138,954,433 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Entity File Number | 001-40993 | |
Entity Tax Identification Number | 47-4074900 | |
Entity Address, Address Line One | c/o Mack Real Estate Credit Strategies, L.P. | |
Entity Address, Address Line Two | 60 Columbus Circle | |
Entity Address, Address Line Three | 20th Floor | |
Entity Address, City or Town | New York | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10023 | |
City Area Code | 212 | |
Local Phone Number | 484-0050 | |
Title of 12(b) Security | Common Stock, $0.01 par value per share | |
Security Exchange Name | NYSE | |
Entity Incorporation, State or Country Code | MD |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) | Jun. 30, 2024 | Mar. 31, 2024 | Dec. 31, 2023 |
Assets | |||
Cash and cash equivalents | $ 148,212,000 | $ 187,301,000 | |
Restricted cash | 21,185,000 | 27,588,000 | |
Loan principal payments held by servicer | 0 | 11,000,000 | |
Loans receivable held-for-investment | 6,913,273,000 | 7,020,383,000 | |
Less: current expected credit loss reserve | (203,756,000) | (142,958,000) | |
Loans receivable held-for-investment, net | 6,709,517,000 | 6,877,425,000 | |
Loans receivable held-for-sale | 0 | 261,709,000 | |
Equity method investment | 42,397,000 | 42,474,000 | |
Real estate owned, net | 518,719,000 | 522,959,000 | |
Other assets | 144,547,000 | 138,905,000 | |
Total assets | 7,584,577,000 | 8,069,361,000 | |
Liabilities and Equity | |||
Repurchase agreements | 3,620,694,000 | 3,805,678,000 | |
Term participation facility | 370,193,000 | 465,434,000 | |
Loan participations sold, net | 100,759,000 | 120,508,000 | |
Notes payable, net | 244,018,000 | 283,341,000 | |
Secured term loan, net | 711,177,000 | 712,576,000 | |
Debt related to real estate owned, net | 278,600,000 | 289,913,000 | |
Other liabilities | 43,182,000 | 47,368,000 | |
Dividends payable | 35,541,000 | 35,328,000 | |
Management fee payable - affiliate | 9,011,000 | 9,315,000 | |
Total liabilities | 5,413,175,000 | 5,769,461,000 | |
Commitments and Contingencies - Note 14 | |||
Equity | |||
Common stock, $0.01 par value, 500,000,000 shares authorized, 138,954,433 and 138,745,357 shares issued and 138,954,433 and 138,745,357 shares outstanding at June 30, 2024 and December 31, 2023, respectively | 1,390,000 | 1,387,000 | |
Additional paid-in capital | 2,732,228,000 | 2,725,217,000 | |
Accumulated deficit | (562,216,000) | (426,704,000) | |
Total equity | 2,171,402,000 | $ 2,215,883,000 | 2,299,900,000 |
Total liabilities and equity | $ 7,584,577,000 | $ 8,069,361,000 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Jun. 30, 2024 | Dec. 31, 2023 |
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 | 138,954,433 | 138,745,357 |
Common stock outstanding | 138,954,433 | 138,745,357 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | ||
Revenue | |||||
Interest and related income | $ 155,131 | $ 180,735 | $ 315,976 | $ 344,901 | |
Less: interest and related expense | 113,225 | 119,676 | 229,156 | 225,703 | |
Net interest income | 41,906 | 61,059 | 86,820 | 119,198 | |
Revenue from real estate owned | 22,581 | 19,866 | 36,492 | 30,829 | |
Total net revenue | 64,487 | 80,925 | 123,312 | 150,027 | |
Expenses | |||||
Management fees - affiliate | 9,011 | 9,641 | 18,221 | 19,297 | |
Incentive fees - affiliate | 1,558 | ||||
General and administrative expenses | 4,845 | 4,492 | 8,722 | 9,417 | |
Stock-based compensation expense | 3,999 | 4,395 | 8,352 | 7,761 | |
Real estate owned: | |||||
Operating expenses | 13,859 | 11,269 | 26,739 | 21,268 | |
Interest expense | 6,869 | 5,865 | 13,198 | 11,309 | |
Depreciation and amortization | 2,623 | 2,092 | 5,222 | 4,150 | |
Total expenses | 41,206 | 37,754 | 80,454 | 74,760 | |
Proceeds from interest rate cap | 228 | 1,495 | 1,093 | 2,678 | |
Unrealized loss on interest rate cap | (94) | (259) | (1,092) | (1,662) | |
(Loss) income from equity method investment | (42) | (895) | (77) | 668 | |
(Loss) gain on extinguishment of debt | (999) | 2,217 | (3,243) | 2,217 | |
Provision for current expected credit loss reserve | (33,928) | (41,476) | (103,888) | (38,237) | |
Net (loss) income | $ (11,554) | $ 4,253 | $ (64,349) | $ 40,931 | |
Net (loss) income per share of common stock: | |||||
Net (loss) income per share of common stock - basic | $ (0.09) | $ 0.02 | $ (0.48) | $ 0.28 | |
Net (loss) income per share of common stock - diluted | $ (0.09) | $ 0.02 | $ (0.48) | $ 0.28 | |
Weighted-average shares of common stock outstanding | |||||
Weighted-average shares of common stock outstanding - basic | [1] | 139,078,117 | 138,399,446 | 138,934,615 | 138,392,666 |
Weighted-average shares of common stock outstanding - diluted | [1] | 139,078,117 | 138,399,446 | 138,934,615 | 138,392,666 |
[1] Amounts as of June 30, 2024 and 2023 include 89,282 and 33,257 fully vested RSUs. |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity (unaudited) - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] |
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 | |||
Stock-based compensation expense | 3,409 | 3,409 | ||
Dividends declared | (52,404) | $ (51,199) | (52,404) | |
Net Income (Loss) | 36,678 | 36,678 | ||
Balance at Mar. 31, 2023 | 2,444,154 | $ 1,400 | 2,715,725 | (272,971) |
Balance (in shares) at Mar. 31, 2023 | 138,376,144 | |||
Stock-based compensation expense | 4,443 | 4,443 | ||
Stock-based compensation expense, Shares | 9,760 | |||
Dividends declared | (52,424) | $ (51,203) | (52,424) | |
Net Income (Loss) | 4,253 | 4,253 | ||
Balance at Jun. 30, 2023 | 2,400,426 | $ 1,400 | 2,720,168 | (321,142) |
Balance (in shares) at Jun. 30, 2023 | 138,385,904 | |||
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 | |||
Stock-based compensation expense | 4,400 | 4,400 | ||
Stock-based compensation expense, Shares | 1,334 | |||
Dividends declared | (35,622) | $ (34,687) | (35,622) | |
Net Income (Loss) | (52,795) | (52,795) | ||
Balance at Mar. 31, 2024 | 2,215,883 | $ 1,387 | 2,729,617 | (515,121) |
Balance (in shares) at Mar. 31, 2024 | 138,746,691 | |||
Stock-based compensation expense | 4,049 | $ 3 | 4,046 | |
Stock-based compensation expense, Shares | 207,742 | |||
Payments for withholding taxes upon delivery of stock-based awards | (1,435) | (1,435) | ||
Dividends declared | (35,541) | $ (34,739) | (35,541) | |
Net Income (Loss) | (11,554) | (11,554) | ||
Balance at Jun. 30, 2024 | $ 2,171,402 | $ 1,390 | $ 2,732,228 | $ (562,216) |
Balance (in shares) at Jun. 30, 2024 | 138,954,433 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Cash flows from operating activities | ||
Net (loss) income | $ (64,349) | $ 40,931 |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||
Accretion of origination fees on loans receivable | (8,960) | (10,586) |
Amortization of deferred financing costs | 11,053 | 11,973 |
Non-cash stock-based compensation expense | 8,446 | 7,852 |
Depreciation and amortization on real estate owned and in-place lease values | 5,222 | 4,150 |
Amortization of above and below market lease values | 708 | |
Unrealized loss on interest rate cap | 1,092 | 1,662 |
Loss (income) from equity method investment | 77 | (668) |
Loss (gain) on extinguishment of debt | 3,243 | (2,217) |
Non-cash advances on loans receivable in lieu of interest | (23,205) | (40,837) |
Non-cash advances on secured financings in lieu of interest | 4,435 | 1,150 |
Repayments of non-cash advances in lieu of interest | 1,865 | 7,738 |
Provision for current expected credit loss reserve | 103,888 | 38,237 |
Changes in operating assets and liabilities: | ||
Other assets | (12,461) | (18,423) |
Other liabilities | (3,737) | 1,174 |
Management fee payable - affiliate | (304) | (226) |
Net cash provided by operating activities | 27,013 | 41,910 |
Cash flows from investing activities | ||
Loan originations, acquisitions and advances, net of fees | (263,427) | (449,716) |
Advances on loans receivable held-for-sale | (2,320) | |
Repayments of loans receivable | 195,971 | 251,435 |
Proceeds from sales of loans receivable | 435,645 | |
Extension and exit fees received from loans receivable | 1,763 | 1,585 |
Cash and restricted cash acquired from assignment-in-lieu of foreclosure of real estate owned | 256 | |
Payment of transaction costs from assignment-in-lieu of foreclosure of real estate owned | (6,611) | |
Reserves and deposits held for loans receivable | (5) | 1 |
Capital expenditures on real estate owned | (581) | (1,056) |
Net cash provided by (used in) investing activities | 367,046 | (204,106) |
Cash flows from financing activities | ||
Payments for withholding taxes upon delivery of stock-based awards | (1,435) | |
Dividends paid | (70,950) | (104,405) |
Proceeds from secured financings | 1,103,041 | 649,804 |
Payment of deferred financing costs | (6,702) | (6,137) |
Purchase of interest rate cap | (508) | |
Repayments of secured financings | (1,449,183) | (417,011) |
Repayments of secured term loan | (3,814) | (23,124) |
Repayments of debt related to real estate owned | (10,000) | |
Net cash (used in) provided by financing activities | (439,551) | 99,127 |
Net decrease in cash, cash equivalents and restricted cash | (45,492) | (63,069) |
Cash, cash equivalents and restricted cash, beginning of period | 214,889 | 348,159 |
Cash, cash equivalents and restricted cash, end of period | 169,397 | 285,090 |
Cash and cash equivalents, end of period | 148,212 | 253,055 |
Restricted cash, end of period | 21,185 | 32,035 |
Cash, cash equivalents and restricted cash, end of period | 169,397 | 285,090 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | 232,867 | 222,751 |
Supplemental disclosure of non-cash investing and financing activities: | ||
Dividends accrued | 35,541 | 52,424 |
Loan principal payments held by servicer | 641 | |
Accrued deferred financing costs | $ 854 | 3,750 |
Real estate acquired in assignment-in-lieu of foreclosure | 124,332 | |
Lease intangibles, net acquired in assignment-in-lieu of foreclosure | 20,080 | |
Working capital acquired in assignment-in-lieu of foreclosure | (2,392) | |
Settlement of loans receivable in assignment-in-lieu of foreclosure | (208,797) | |
Accrued assignment-in-lieu of foreclosure transaction costs | $ 414 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | |||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | |
Pay vs Performance Disclosure | ||||
Net Income (Loss) | $ (11,554) | $ (52,795) | $ 4,253 | $ 36,678 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Organization
Organization | 6 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | Note 1. Organization Claros Mortgage Trust, Inc. (referred to throughout this report as the “Company,” “we,” “us” and “our”) is a Maryland Corporation formed on April 29, 2015 for the purpose of creating a diversified portfolio of income-producing loans collateralized by institutional quality commercial real estate. We commenced operations on August 25, 2015 (“Commencement of Operations”) and generally conduct our business through wholly-owned subsidiaries. Unless the context requires otherwise, any references to the Company 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 | 6 Months Ended |
Jun. 30, 2024 | |
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”). These unaudited consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2023, as filed with the Securities and Exchange Commission. In the opinion of management, all adjustments (consisting only of normal recurring adjustments) necessary for a fair statement of our financial position, results of operations and cash flows have been included. Our results of operations for the three and six months ended June 30, 2024 are not necessarily indicative of the results to be expected for the full year or any other future period. 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 June 30, 2024 and December 31, 2023 . 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 our current expected credit loss reserve, the determination of the fair value of real estate assets acquired and liabilities assumed, 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. Current Expected Credit Losses The current expected credit loss (“CECL”) reserve required under ASC 326, Financial Instruments – Credit Losses, 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. ASC 326 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 duration, 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 expected remaining duration. 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, whether the loan’s initial maturity is near-term, 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 June 30, 2024. 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 through their expected remaining duration, 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 ASC 326 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. Recent Accounting Guidance 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. The FASB issued ASU 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures” (“ASU 2023-07”). The standard provides improvements to reportable segment disclosure requirements for annual and interim reporting, primarily through enhanced disclosures about significant segment expenses. The standard is effective for annual periods beginning after December 15, 2023 and interim periods beginning after December 15, 2024, with early adoption permitted. The adoption of ASU 2023-07 is not expected to have a material impact on our consolidated financial statements. |
Loans Portfolio
Loans Portfolio | 6 Months Ended |
Jun. 30, 2024 | |
Receivables [Abstract] | |
Loans Portfolio | Note 3. Loan Portfolio Loans Receivable Our loan portfolio as of June 30, 2024 was comprised of the following loans ($ in thousands, except for number of loans): Number of Loan Commitment (1) Unpaid Principal Balance Carrying (2) Weighted Average Spread (3) Weighted Average Interest Rate (4) Loans receivable held-for-investment: Variable: Senior loans (5) 57 $ 7,513,581 $ 6,764,591 $ 6,671,989 + 3.76% 8.49 % Subordinate loans 1 30,200 30,200 30,351 + 12.86% 18.20 % 58 7,543,781 6,794,791 6,702,340 + 3.80% 8.53 % Fixed: Senior loans (5) 2 $ 7,597 $ 7,597 $ 7,809 N/A 8.25 % Subordinate loans 2 125,886 125,886 124,847 N/A 8.44 % 4 133,483 133,483 132,656 8.43 % Total/Weighted Average 62 $ 7,677,264 $ 6,928,274 $ 6,834,996 N/A 8.53 % General CECL reserve ( 125,479 ) Loans receivable held-for-investment, net $ 6,709,517 (1) Loan commitment represents principal outstanding plus remaining unfunded loan commitments. (2) Net of specific CECL reserve s of $ 78.3 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 June 30, 2024 was 5.34 % . Weighted average is based on outstanding principal as of June 30, 2024 . 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 SOFR floors (if applicable). Weighted average is based on outstanding principal as of June 30, 2024 and includes loans on non-accrual status. For loans placed on non-accrual, the spread 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. Our loans receivable portfolio as of December 31, 2023 was comprised of the following loans ($ in thousands, except for number of loans): Number of Loan Commitment (1) Unpaid Principal Balance Carrying (2) Weighted Average Spread (3) Weighted Average Interest Rate (4) Loans receivable held-for-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 8.70 % 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 is expressed as a spread over the relevant floating benchmark rates. SOFR as of December 31, 2023 was 5.35 % . Weighted average is based on unpaid principal balance 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 applicable floating benchmark rate (if applicable), including SOFR floors (if applicable). Weighted average is based on unpaid principal balance 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. Activity relating to the loans receivable portfolio for the six months ended June 30, 2024 ($ in thousands): Unpaid Principal Balance Deferred Fees Specific CECL Reserve Carrying Value (1) Balance at December 31, 2023 $ 7,044,524 $ ( 24,141 ) $ ( 72,587 ) $ 6,947,796 Advances on existing loans 263,427 - - 263,427 Non-cash advances in lieu of interest 23,205 - - 23,205 Origination fees, extension fees and exit fees - ( 1,423 ) - ( 1,423 ) Repayments of loans receivable ( 184,971 ) - - ( 184,971 ) Repayments of non-cash advances in lieu of interest ( 1,865 ) - - ( 1,865 ) Accretion of fees - 8,960 - 8,960 Provision for specific CECL reserve - - ( 48,517 ) ( 48,517 ) Transfer to loans held-for-sale ( 216,046 ) 1,603 42,266 ( 172,177 ) Principal charge-offs - - 561 561 Balance at June 30, 2024 $ 6,928,274 $ ( 15,001 ) $ ( 78,277 ) $ 6,834,996 General CECL reserve ( 125,479 ) Carrying Value $ 6,709,517 (1) Balance at December 31, 2023 does not include general CECL reserve. In April 2024, we sold a senior loan, which was collateralized by two multifamily properties under development located in Irvine, CA and a pledge of equity interests in the borrower, to an unaffiliated purchaser with a then carrying value and unpaid principal balance of $ 216.8 million and $ 218.4 million, respectively. During the three months ended March 31, 2024, in anticipation of this loan sale, we classified the loan as held-for-sale and recognized a $ 42.3 million principal charge-off, representing the difference between the carrying value before principal charge-off and the sales price of the loan. Such principal charge-off was attributable to the construction status of the loan’s collateral asset and its $ 44.9 million of remaining unfunded commitments. During the three months ended June 30, 2024, we recorded an additional principal charge-off of $ 0.6 million relating to transaction costs incurred. The loan was on non-accrual status effective October 1, 2023 and was risk rated 4. In January 2024, we sold three senior loans to an unaffiliated purchaser. 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. The loans receivable held-for-sale were presented net of a $ 7.5 million principal charge-off, representing the difference between the carrying values before principal charge-off and the sales price of the loans. Two of the three loans were sold at their respective carrying values, while the principal charge-off was allocated and attributable to the construction status of the third loan’s collateral asset and its $ 105.0 million of remaining unfunded commitments. As of June 30, 2024 , we have no loans receivable classified as held-for-sale. As of December 31, 2023, our loans receivable held-for-sale 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 During the three months ended September 30, 2023, we sold a senior loan collateralized by a portfolio of multifamily properties located in San Francisco, CA. We obtained a true-sale-at-law opinion and determined the transaction constituted a sale. 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 June 30, 2024, we have not recognized any value to this interest on our consolidated financial statements. 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 June 30, 2024, the loan had total commitments and an amortized cost basis of $ 78.6 million, represents approxi mately 1.1 % of tot al loans receivable held-for-investment, based on carrying value net of any specific CECL reserves, is current on interest payments, is in maturity default, and is risk rated 4. 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, 2023 , we further modified this loan to provide for an initial maturity extension to September 18, 2023 . As of June 30, 2024, the loan had total commitments and an amortized cost bas is of $ 87.8 million, represents approximately 1.3 % of total loans receivable held-for-investment, based on carrying value net of any specific CECL reserves, is current on interest payments, is in maturity default, and is risk rated 4. The loan is 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 June 30, 2024 and December 31, 2023 ($ in thousands): June 30, 2024 December 31, 2023 Loan Type Carrying Value (1) Percentage Carrying Value (2) Percentage Senior loans (3) $ 6,679,798 98 % $ 6,792,666 98 % Subordinate loans 155,198 2 % 155,130 2 % $ 6,834,996 100 % $ 6,947,796 100 % General CECL reserve ( 125,479 ) ( 70,371 ) $ 6,709,517 $ 6,877,425 Property Type Carrying Value (1) Percentage Carrying Value (2) Percentage Multifamily $ 2,721,317 40 % $ 2,829,436 41 % Hospitality 1,233,207 18 % 1,339,067 19 % Office 974,943 14 % 961,744 14 % Mixed-Use (4) 604,985 9 % 596,919 9 % Other 567,061 8 % 482,582 7 % Land 518,645 8 % 518,252 7 % For Sale Condo 214,838 3 % 219,796 3 % $ 6,834,996 100 % $ 6,947,796 100 % General CECL reserve ( 125,479 ) ( 70,371 ) $ 6,709,517 $ 6,877,425 Geographic Location Carrying Value (1) Percentage Carrying Value (2) Percentage United States West $ 2,445,836 36 % $ 2,518,716 35 % Northeast 1,763,775 26 % 1,861,239 27 % Mid Atlantic 776,594 11 % 761,588 11 % Southeast 763,529 11 % 735,011 11 % Southwest 600,746 9 % 592,324 9 % Midwest 482,617 7 % 477,019 7 % Other 1,899 0 % 1,899 0 % $ 6,834,996 100 % $ 6,947,796 100 % General CECL reserve ( 125,479 ) ( 70,371 ) $ 6,709,517 $ 6,877,425 (1) Net of specific CECL r eserves of $ 78.3 million at June 30, 2024 . (2) Net of specific CECL reserves of $ 72.6 million at December 31, 2023 . (3) Senior loans include senior mortgages and similar credit quality loans, including related contiguous subordinate loans and pari passu participations in senior mortgage loans. (4) At June 30, 2024 , mixed-use comprises of 4 % office, 2 % retail, 2 % multifamily, 1 % hospitality, and immaterial amounts of for sale condo. At December 31, 2023, mixed-use comprises of 3 % office, 2 % retail, 2 % multifamily, 1 % hospitality, and immaterial amounts of for sale condo. Interest Income and Accretion The following table summarizes our interest and accretion income from our loan portfolio and interest on cash balances for the three and six months ended June 30, 2024 and 2023, respectively ($ in thousands): Three Months Ended Six Months Ended June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023 Coupon interest $ 148,319 $ 171,018 $ 301,326 $ 327,634 Interest on cash, cash equivalents, and other income 2,485 4,378 5,690 6,681 Accretion of fees 4,327 5,339 8,960 10,586 Total interest and related income (1) $ 155,131 $ 180,735 $ 315,976 $ 344,901 (1) For the three months ended June 30, 2024 and 2023, we did not recognize any default interest, late fees, pre-payment penalties, and/or accelerated fees. For the six months ended June 30, 2024 and 2023, we recognized $ 1.3 million and $ 0.3 million , respectively, in default interest, late fees, pre-payment penalties, and/or accelerated fees . 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 June 30, 2024 and December 31, 2023 ($ in thousands): June 30, 2024 Risk Rating Number of Loans Unpaid Principal Balance Carrying Value (1) % of Total of Carrying Value 1 - $ - $ - 0 % 2 - - - 0 % 3 39 4,483,181 4,472,171 65 % 4 18 2,106,138 2,102,826 31 % 5 5 338,955 259,999 4 % 62 $ 6,928,274 $ 6,834,996 100 % General CECL reserve ( 125,479 ) $ 6,709,517 (1) Net of specific CECL reserves of $ 78.3 million . 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. As of June 30, 2024 and December 31, 2023, the average risk rating of our portfolio was 3.4 and 3.3 , 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 June 30, 2024 ($ in thousands): Property Type Location Risk Rating Unpaid Principal Balance Carrying Value Before Specific CECL Reserve Specific Net Carrying Value Interest Recognition Method / Land VA 5 $ 152,236 $ 152,236 $ ( 32,136 ) $ 120,100 Cost Recovery / 1/1/2023 Office CA 5 112,442 112,163 ( 20,863 ) 91,300 Cash Basis / 4/1/2023 Office CA 4 98,214 97,827 - 97,827 Cost Recovery / 9/1/2023 Multifamily NV 4 96,529 96,082 - 96,082 Cash Basis / 1/1/2024 Land NY 4 87,741 88,166 - 88,166 Cash Basis / 4/1/2024 Office GA 5 71,492 71,094 ( 24,394 ) 46,700 Cost Recovery / 9/1/2023 Land NY 4 67,000 67,000 - 67,000 Cash Basis / 11/1/2021 Multifamily AZ 4 50,164 49,957 - 49,957 Cash Basis / 1/1/2024 Multifamily TX 4 39,279 39,085 - 39,085 Cash Basis / 1/1/2024 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 (1) $ 777,882 $ 776,393 $ ( 78,277 ) $ 698,116 (1) Loans classified as non-accrual represented 10.2 % of the total loans receivable held-for-investment at June 30, 2024 , based on carrying value net of any specific CECL reserves. Excludes five loans with an aggregate carrying value of $ 600.7 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 June 30, 2024 , we have two loans with an aggregate carrying value of $ 479.4 million that are delinquent on interest payments but remains on accrual status as the interest is deemed collectible based on the underlying collateral value. 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 / Multifamily (1) CA 4 $ 214,479 $ 212,877 $ - $ 212,877 Cost recovery / 10/1/2023 Land 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) $ 717,738 $ 715,070 $ ( 72,587 ) $ 642,483 (1) This loan was sold in April 2024. (2) During the year ended December 31, 2023, interest income of $ 0.3 million was recognized on a cash basis for this loan while on non-accrual status . (3) Loans classified as non-accrual represented 9.2 % of the 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. 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 three and six months ended June 30, 2024 and 2023, respectively ($ in thousands): General CECL Reserve Specific CECL Reserve Loans Receivable Held-for-Investment Unfunded Loan Commitments (1) Total General CECL Reserve Total CECL Reserve Total reserve, December 31, 2022 $ 60,300 $ 68,347 $ 17,715 $ 86,062 $ 146,362 Reversal - ( 1,021 ) ( 2,218 ) ( 3,239 ) ( 3,239 ) Total reserve, March 31, 2023 $ 60,300 $ 67,326 $ 15,497 $ 82,823 $ 143,123 Provision (reversal) 44,588 ( 1,628 ) ( 1,485 ) ( 3,113 ) 41,475 Principal charge-offs ( 66,935 ) - - - ( 66,935 ) Total reserve, June 30, 2023 $ 37,953 $ 65,698 $ 14,012 $ 79,710 $ 117,663 Total reserve, December 31, 2023 $ 72,587 $ 70,371 $ 9,726 $ 80,097 $ 152,684 Provision (reversal) 47,285 23,358 ( 683 ) 22,675 69,960 Principal charge-offs ( 42,266 ) - - - ( 42,266 ) Total reserve, March 31, 2024 $ 77,606 $ 93,729 $ 9,043 $ 102,772 $ 180,378 Provision 1,232 31,750 946 32,696 33,928 Principal charge-offs ( 561 ) - - - ( 561 ) Total reserve, June 30, 2024 $ 78,277 $ 125,479 $ 9,989 $ 135,468 $ 213,745 Reserve at June 30, 2024 (2) 1.1 % 2.0 % 3.1 % (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 June 30, 2024 . During the six months ended June 30, 2024, we recorded a provision for current expected credit losses of $ 103.9 million, which consisted of a $ 55.4 million increase in our general CECL reserve and a $ 48.5 million increase in our specific CECL reserve prior to principal charge-offs. The increase in general CECL reserves was primarily attributable to changes in the historical loss rate of the analogous dataset and changes in risk ratings, non-accrual status, and expected remaining duration within our loan portfolio, offset by the reduction in the size of our loan portfolio subject to determination of the general CECL reserve. As of June 30, 2024, our total current expected credit loss reserve was $ 213.7 million. During the six months ended June 30, 2023, we recorded a provision for current expected credit losses of $ 38.2 million , which included a $ 44.6 million increase in our specific CECL reserve prior to a principal charge-off and a reversal of $ 6.4 million of general CECL reserves. This reversal of general CECL reserves was primarily attributable to the seasoning of our loan portfolio and a reduction in the size of our loan portfolio. As of June 30, 2023, our total current expected credit loss reserve was $ 117.7 million. Specific CECL Reserves The following table presents a summary of our loans receivable held-for-investment with specific CECL reserves as of June 30, 2024 ($ in thousands): Property Type Location Unpaid Principal Balance Carrying Value Before Specific CECL Reserve Specific CECL Reserve Net Carrying Value Land VA $ 152,236 $ 152,236 $ 32,136 $ 120,100 Office CA 112,442 112,163 20,863 91,300 Office GA 71,492 71,094 24,394 46,700 Other NY 886 884 884 - Total $ 337,056 $ 336,377 $ 78,277 $ 258,100 As of December 31, 2023 , we had a specific CECL reserve of $ 31.2 million in connection with a senior loan with a borrower that is experiencing financial difficulty and which is secured by land in Arlington, VA. During the six months ended June 30, 2024, we recorded additional specific CECL reserves totaling $ 0.9 million as a result of protective advances made, resulting in a total specific CECL reserve of $ 32.1 million . As of June 30, 2024, the loan had an unpaid principal balance and carrying value prior to any specific CECL reserve of $ 152.2 million and is in maturity default. Effective January 1, 2023, this loan was placed on non-accrual status. As of December 31, 2023 , we had a specific CECL reserve of $ 20.5 million in connection with a senior loan with a borrower that is experiencing financial difficulty and which is secured by an office building in San Francisco, CA and a pledge of equity interests in the borrower. During the six months ended June 30, 2024, we recorded additional specific CECL reserves totaling $ 0.4 million based on changes to the collateral value, resulting in a total specific CECL reserve of $ 20.9 million . As of June 30, 2024, the loan had an unpaid principal balance and carrying value prior to any specific CECL reserve of $ 112.4 million and $ 112.2 million , respectively, and is in maturity default. Effective September 1, 2023, this loan was placed on non-accrual status. As of December 31, 2023, we had a specific CECL reserve of $ 20.0 million in connection with a senior loan with a borrower that is experiencing financial difficulty and which is secured by an office building in Atlanta, GA and a pledge of equity interests in the borrower. During the six months ended June 30, 2024, we recorded additional specific CECL reserves totaling $ 4.4 million based on changes to the collateral value, resulting in a total specific CECL reserve of $ 24.4 million . As of June 30, 2024, the loan had 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. As of June 30, 2023 and December 31, 2023, we had a specific CECL reserve of $ 0.9 million in connection with a subordinate loan with a borrower that is experiencing financial difficulty and which is secured by the equity interests in a retail condo in Brooklyn, NY. As of June 30, 2024, the loan had 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. 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 June 30, 2024 include assumptions of property specific cash flows over estimated holding periods, assumptions of property redevelopment costs, assumptions of leasing activities, discount rates ranging from 6.0 % to 9.5 %, and market and terminal capitalization rates ranging from 6.0 % to 8.3 %. These assumptions 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 is our internal risk rating, which is further discussed above. The following table presents the carrying value of our loans receivable held-for-investment as of June 30, 2024 by year of origination and risk rating, and the principal charge-offs recognized during the six months ended June 30, 2024 ($ in thousands): Carrying Value by Origination Year as of June 30, 2024 Risk Rating Number of Loans Carrying Value (1) 2024 2023 2022 2021 2020 2019 2018 1 - $ - $ - $ - $ - $ - $ - $ - $ - 2 - - - - - - - - - 3 39 4,472,171 - 101,093 2,018,589 1,104,317 - 808,669 439,503 4 18 2,102,826 - - 542,904 570,590 87,750 734,864 166,718 5 5 259,999 - - - 46,700 91,300 1,899 120,100 62 $ 6,834,996 $ - $ 101,093 $ 2,561,493 $ 1,721,607 $ 179,050 $ 1,545,432 $ 726,321 Principal Charge-offs (2) $ - $ - $ - $ 42,827 $ - $ - $ - $ - (1) Net of specific CECL reserves o f $ 78.3 million. (2) Principal charge-off recognized in connection with the sale of a senior loan in April 2024. The following table details overall statistics for our loans receivable held-for-investment: June 30, 2024 December 31, 2023 Weighted average yield to maturity (1) 9.0 % 9.1 % Weighted average term to initial maturity 0.8 years 1.2 years Weighted average term to fully extended maturity (2) 2.2 years 2.6 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 June 30, 2024 and 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 | 6 Months Ended |
Jun. 30, 2024 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investment | Note 4. Equity Method Investment As of June 30, 2024 and December 31, 2023 , we hold a 51 % interest in CMTG/TT Mortgage REIT LLC (“CMTG/TT”). We are not deemed to be the primary beneficiary of CMTG/TT in accordance with ASC 810, therefore we do not consolidate this joint venture. During its active investment period, CMTG/TT originated loans collateralized by institutional quality commercial real estate. As of June 30, 2024, the sole remaining loan held by CMTG/TT had an unpaid principal balance of $ 78.5 million and was placed on non-accrual status effective April 1, 2023. As of June 30, 2024 , the carrying value of our 51 % equity interest in CMTG/TT approximated $ 42.4 million. 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 June 30, 2024 . |
Real Estate Owned
Real Estate Owned | 6 Months Ended |
Jun. 30, 2024 | |
Real Estate Owned, Disclosure of Detailed Components [Abstract] | |
Real Estate Owned | Note 5. Real Estate Owned The following table presents detail related to our hotel portfolio and mixed-use real estate owned, net as of June 30, 2024 and December 31, 2023 ($ in thousands): June 30, 2024 December 31, 2023 Land $ 235,998 $ 235,998 Building 295,651 295,651 Capital improvements 5,017 4,436 Tenant improvements 4,414 4,414 Furniture, fixtures and equipment 6,500 6,500 Real estate owned 547,580 546,999 Less: accumulated depreciation ( 28,861 ) ( 24,040 ) Real estate owned, net $ 518,719 $ 522,959 Depreciation expense related to our hotel portfolio and mixed-use real estate owned for the three months ended June 30, 2024 and 2023 was $ 2.4 million and $ 2.1 million , respectively. Depreciation expense related to our hotel portfolio and mixed-use real estate owned for the six months ended June 30, 2024 and 2023 was $ 4.8 million and $ 4.2 million , respectively. At each reporting period, we assess whether there are any indicators of impairment of our real estate owned assets. There were no impairments of our real estate owned assets through June 30, 2024. The following table presents additional detail related to the revenues and operating expenses of our real estate owned properties ($ in thousands): Three Months Ended Six Months Ended June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023 Revenue Hotel portfolio $ 20,728 $ 19,866 $ 32,745 $ 30,829 Mixed-Use property fixed rents 2,094 - 4,172 - Mixed-Use property straight-line rent adjustment 32 - 63 - Mixed-Use property variable rents 81 - 220 - Mixed-Use property amortization of above and below market leases, net ( 354 ) - ( 708 ) - Total revenue from real estate owned $ 22,581 $ 19,866 $ 36,492 $ 30,829 Operating expenses Hotel portfolio $ 12,647 $ 11,269 $ 24,269 $ 21,268 Mixed-Use property 1,212 - 2,470 - Total operating expenses from real estate owned $ 13,859 $ 11,269 $ 26,739 $ 21,268 Leases We have 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 June 30, 2024 , 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 (1) $ 4,156 2025 8,383 2026 8,415 2027 8,432 2028 8,323 Thereafter 27,462 Total $ 65,171 (1) Contractual lease payments due for the remaining six months of 2024. 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 related values. As of June 30, 2024 and December 31, 2023, our lease intangibles are comprised of the following ($ in thousands): Intangible June 30, 2024 December 31, 2023 In-place, above market, and other lease values $ 24,289 $ 24,289 Less: accumulated amortization ( 2,592 ) ( 1,296 ) In-place, above market, and other lease values, net $ 21,697 $ 22,993 Below market lease values $ ( 4,209 ) $ ( 4,209 ) Less: accumulated amortization 377 188 Below market lease values, net $ ( 3,832 ) $ ( 4,021 ) Amortization of in-place and other lease values for the three and six months ended June 30, 2024 was $ 0.2 million and $ 0.4 million , respectively. Amortization of above market lease values for the three and six months ended June 30, 2024 was $ 0.4 million and $ 0.9 million , respectively. Amortization of below market lease values for the three and six months ended June 30, 2024 was $ 0.1 million and $ 0.2 million , respectively. We did not recognize any amortization of lease intangibles during the comparable prior period. As of June 30, 2024, 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 (3) $ 401 $ ( 895 ) $ 188 2025 802 ( 1,791 ) 377 2026 802 ( 1,791 ) 377 2027 802 ( 1,791 ) 377 2028 769 ( 1,771 ) 377 Thereafter 2,025 ( 8,057 ) 2,136 Total $ 5,601 $ ( 16,096 ) $ 3,832 (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. (3) Represents amortization for the remaining six months of 2024. 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 | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Debt Obligations | Note 6. Debt Obligations As of June 30, 2024 and December 31, 2023, 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. Our financings bear interest at a rate equal to SOFR plus a credit spread. The following table summarizes our financings as of June 30, 2024 and December 31, 2023 ($ in thousands): June 30, 2024 December 31, 2023 Capacity Borrowing Outstanding Weighted (1) Capacity Borrowing Outstanding Weighted (1) Repurchase agreements and term (2) $ 5,626,006 $ 3,990,887 + 2.69 % $ 5,709,907 $ 4,271,112 + 2.76 % Loan participations sold 100,634 100,634 + 4.25 % 120,634 120,634 + 4.15 % Notes payable 359,667 247,027 + 3.44 % 419,867 286,827 + 3.10 % Secured term loan 721,638 721,638 + 4.50 % 725,452 725,452 + 4.50 % Debt related to real estate owned 280,000 280,000 + 2.90 % 290,000 290,000 + 2.83 % Total/Weighted Average $ 7,087,945 $ 5,340,186 + 3.01 % $ 7,265,860 $ 5,694,025 + 3.03 % (1) Weighted average spread over the applicable benchmark rate is based on unpaid principal balance. SOFR as of June 30, 2024 and December 31, 2023 was 5.34 % and 5.35 % , respectively. (2) The repurchase agreements and term participation facility are partially recourse to us. As of June 30, 2024 and December 31, 2023 , the weighted average recourse on both our repurchase agreements and term participation facility was 29 % and 30 %, respectively. Repurchase Agreements and Term Participation Facility Repurchase Agreements. The following table summarizes our repurchase agreements by lender as of June 30, 2024 ($ in thousands): Lender Initial Maturity Fully (1) Maximum Borrowing Undrawn Carrying Value of Collateral (2) JP Morgan Chase Bank, N.A. 7/28/2026 7/28/2028 $ 2,411,713 $ 2,268,143 $ 143,570 $ 3,284,536 Morgan Stanley Bank, N.A. 1/26/2025 1/26/2025 1,000,000 549,169 450,831 798,327 Goldman Sachs Bank USA 5/31/2025 5/31/2027 500,000 143,215 356,785 187,802 Barclays Bank PLC 12/20/2024 12/20/2025 500,000 - 500,000 - Wells Fargo Bank, N.A. 9/29/2024 9/29/2026 750,000 660,167 89,833 895,896 Total $ 5,161,713 $ 3,620,694 $ 1,541,019 $ 5,166,561 (1) Facility maturity dates may be extended , subject to meeting prescribed conditions . (2) Net of specific CECL reserves, if any. The Deutsche Bank AG, New York Branch repurchase agreement reached its maturity in June 2024, upon which the facility was terminated. The following table summarizes our repurchase agreements by lender as of December 31, 2023 ($ in thousands): Lender Initial Maturity Fully (1) Maximum Borrowing Undrawn Carrying Value of Collateral (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 1/26/2025 1,000,000 735,393 264,607 1,023,295 Goldman Sachs Bank USA 5/31/2025 (3) 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, subject to meeting prescribed conditions. (2) Net of specific CECL reserves, if any. (3) Assumes as of right extension is exercised, subject to meeting prescribed conditions. 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 June 30, 2024, the facility had $ 464.3 million in financing commitments of which $ 370.2 million was outstanding. As of December 31, 2023 , the facility had $ 654.4 million in financing commitments of which $ 465.4 million was outstanding. As of June 30, 2024 , the maturity date of the facility is October 11 , 2028 . Our term participation facility as of June 30, 2024 is summarized as follows ($ in thousands): Contractual Maturity Date Borrowing Outstanding Carrying Value Carrying Value 10/11/2028 $ 370,193 $ 370,193 $ 624,263 Our term participation facility as of December 31, 2023 is summarized as follows ($ in thousands): Contractual Maturity Date Borrowing Outstanding Carrying Value Carrying Value 10/11/2028 $ 465,434 $ 465,434 $ 797,335 Loan Participations Sold Our loan participations sold as of June 30, 2024 are summarized as follows ($ in thousands): Contractual Maximum Borrowing Outstanding Carrying Carrying Value 10/18/2024 (1) 10/18/2024 $ 100,634 $ 100,759 $ 183,992 Total $ 100,634 $ 100,759 $ 183,992 (1) Carrying value of collateral includes cash reserve balances held by our financing counterparty. Our loan participations sold as of December 31, 2023 are summarized as follows ($ in thousands): Contractual Maximum Borrowing Outstanding Carrying Carrying Value 10/18/2024 (1) 10/18/2024 $ 100,634 $ 100,508 $ 182,723 12/31/2024 12/31/2025 20,000 20,000 157,346 Total $ 120,634 $ 120,508 $ 340,069 (1) Carrying value of collateral includes cash reserve balances held by our financing counterparty. Notes Payable Our notes payable as of June 30, 2024 are summarized as follows ($ in thousands): Contractual Maximum Borrowing Outstanding Carrying Carrying Value 5/13/2026 5/13/2027 $ 52,973 $ 52,326 $ 119,036 2/2/2026 2/2/2027 55,004 54,295 67,583 9/2/2026 9/2/2027 79,917 78,793 112,340 10/13/2025 10/13/2026 59,133 58,604 97,869 Total $ 247,027 $ 244,018 $ 396,828 Our notes payable as of December 31, 2023 are summarized as follows ($ in thousands): Contractual Maximum Borrowing Outstanding Carrying Carrying Value 12/31/2024 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 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 June 30, 2024 is summarized as follows ($ in thousands): Contractual Maturity Date Stated Rate (1) Interest Rate Borrowing Outstanding Carrying Value 8/9/2026 S + 4.50% 9.94 % $ 721,638 $ 711,177 (1) SOFR at June 30, 2024 was 5.34 % . 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) SOFR at December 31, 2023 was 5.35 % . 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. On February 7, 2024, we modified our debt related to real estate owned to provide for, among other things, an extension of the contractual maturity date to November 9, 2024 , a $ 10.0 million principal paydown, and the designation of a portion of the loan becoming partial recourse to us. Concurrent with this modification, we purchased an interest rate cap with a notional amount of $ 280.0 million and a strike rate of 5.00 % through the extended contractual maturity date for $ 0.5 million. Our debt related to real estate owned as of June 30, 2024 is summarized as follows ($ in thousands): Contractual Maturity Date Stated Rate (1) Net Interest Rate (1) Borrowing Outstanding Carrying Value 11/9/2024 S + 2.90 % 7.90 % $ 280,000 $ 278,600 (1) SOFR at June 30, 2024 was 5.34 % , which exceeded the 5.00 % ceiling provided by our interest rate cap. See Note 7 - Derivatives 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) Borrowing Outstanding Carrying Value 2/9/2024 S + 2.83 % 5.83 % $ 290,000 $ 289,913 (1) SOFR at December 31, 2023 was 5.35 % , 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 of up to 75 %, which declines after the 30th 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 June 30, 2024 and December 31, 2023 , we had no outstanding balance on the facility. Interest Expense and Amortization The following table summarizes our interest and amortization expense on our secured financings, debt related to real estate owned and secured term loan for the three and six months ended June 30, 2024 and 2023, respectively ($ in thousands): Three Months Ended Six Months Ended June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023 Interest expense on secured financings $ 90,357 $ 95,860 $ 183,173 $ 178,810 Interest expense on secured term loan 18,174 17,942 36,419 35,183 Amortization of deferred financing costs 4,694 5,874 9,564 11,710 Interest and related expense 113,225 119,676 229,156 225,703 Interest expense on debt related to real estate owned (1) 6,869 5,865 13,198 11,309 Total interest and related expense $ 120,094 $ 125,541 $ 242,354 $ 237,012 (1) For the three months ended June 30, 2024 and 2023, interest on debt related to real estate owned includes $ 1.1 million and $ 132,000 of amortization of deferred financing costs, respectively. For the six months ended June 30, 2024 and 2023, interest on debt related to real estate owned includes $ 1.5 million and $ 263,000 of amortization of financing costs, respectively. Financial Covenants Our financing agreements generally contain certain financial covenants. For example, our ratio of earnings before interest, taxes, depreciation, and amortization to interest charges (“Interest Coverage Ratio”), as defined in our repurchase agreements, term participation facility, and short-term funding facility, shall not be less than 1.3 to 1.0, wh ereas our ratio of earnings before interest, taxes, depreciation, and amortization to interest charges as defined in our secured term loan shall not be less than 1.5 to 1.0. Further, (i) our tangible net worth, as defined in the agreements, shall not be less than $ 1.91 billio n as of each measurement date; (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 June 30, 2024 , 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. Further, we have modified the Interest Coverage Ratio in our repurchase agreements and term participation facility to provide that for the quarters ended June 30, 2024 through September 30, 2025, our Interest Coverage Ratio shall not be less than 1.1 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 continue to work with our counterparties on modifying financial covenants as needed. |
Derivatives
Derivatives | 6 Months Ended |
Jun. 30, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | Note 7. Derivatives On June 2, 2021 and in connection with our debt related to real estate owned, 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 $ 0.3 million. Such interest rate cap effectively limited the maximum interest rate of our debt related to real estate owned to 5.83 % through its maturity. On February 7, 2024 and in connection with the modification of our debt related to real estate owned, we acquired an interest rate cap with a notional amount of $ 280.0 million, a strike rate of 5.00 %, and a maturity date of November 15, 2024 for $ 0.5 million. Such interest rate cap effectively limits the maximum interest rate of our debt related to real estate owned to 7.90 % through its maturity. 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. As of June 30, 2024 and December 31, 2023, the fair value of the interest rate cap was $ 0.3 million and $ 0.9 million, respectively. During the three months ended June 30, 2024 and 2023, we recognized $ 0.2 million and $ 1.5 million , respectively, of proceeds from interest rate cap. During the six months ended June 30, 2024 and 2023, we recognized $ 1.1 million and $ 2.7 million , respectively, of proceeds from interest rate cap. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2024 | |
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 $ 0.3 million and $ 0.9 million at June 30, 2024 and December 31, 2023, respectively. 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): June 30, 2024 Carrying Unpaid Principal Fair Value Hierarchy Level Value Balance Fair Value Level 1 Level 2 Level 3 Loans receivable held-for-investment, net $ 6,709,517 $ 6,928,274 $ 6,688,243 $ - $ - $ 6,688,243 Repurchase agreements 3,620,694 3,620,694 3,620,694 - - 3,620,694 Term participation facility 370,193 370,193 370,677 - - 370,677 Loan participations sold, net 100,759 100,634 100,297 - - 100,297 Notes payable, net 244,018 247,027 244,781 - - 244,781 Secured term loan, net 711,177 721,638 664,809 - - 664,809 Debt related to real estate owned, net 278,600 280,000 278,318 - - 278,318 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 |
Equity
Equity | 6 Months Ended |
Jun. 30, 2024 | |
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 138,954,433 and 138,745,357 shares of common stock issued and 138,954,433 and 138,745,357 shares of common stock outstanding as of June 30, 2024 and December 31, 2023, respectively. The following table provides a summary of the number of shares of common stock outstanding during the six months ended June 30, 2024 and 2023, respectively: Six Months Ended Common Stock Outstanding June 30, 2024 June 30, 2023 Beginning balance 138,745,357 138,376,144 Issuance of common stock in exchange for fully vested RSUs 209,076 9,760 Ending balance 138,954,433 138,385,904 At the Market Stock Offering Program On May 10, 2024, we entered into an equity distribution agreement with certain sales agents, pursuant to which we may sell, from time to time, up to an aggregate sales price of $ 150.0 million of our common stock pursuant to a continuous offering program (the “ATM Agreement”) under our Shelf. Sales of our common stock made pursuant to the ATM Agreement may be made in negotiated transactions or transactions that are deemed to be “at the market” offerings as defined in Rule 415 under the Securities Act of 1933, as amended. The timing and amount of actual sales will depend on a variety of factors including market conditions, the trading price of our common stock, our capital needs, and our determination of the appropriate sources of funding to meet such needs. During the six months ended June 30, 2024 , we did no t issue any shares of our common stock pursuant to the ATM Agreement, and we incurred $ 0.5 million of professional and legal fees to establish the program which are included in general and administrative expense on our consolidated statement of operations. As of June 30, 2024 , the ATM Agreement has not been utilized, and $ 150.0 million remained available for issuance of our common stock pursuant to the ATM Agreement. Dividends The following tables detail our dividend activity for common stock ($ in thousands, except per share data): For the Quarter Ended March 31, 2024 June 30, 2024 Amount Per Share Amount Per Share Dividends declared - common stock $ 34,687 $ 0.25 $ 34,739 $ 0.25 Record Date - common stock March 29, 2024 June 28, 2024 Payment Date - common stock April 15, 2024 July 15, 2024 For the Quarter Ended March 31, 2023 June 30, 2023 Amount Per Share Amount Per Share Dividends declared - common stock $ 51,199 $ 0.37 $ 51,203 $ 0.37 Record Date - common stock March 31, 2023 June 30, 2023 Payment Date - common stock April 14, 2023 July 14, 2023 |
Earnings per Share
Earnings per Share | 6 Months Ended |
Jun. 30, 2024 | |
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 (loss) less 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 (loss) 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 June 30, 2024 and 2023, we ha d no dilutive securities. As a r esult, basic and diluted EPS are the same. The calculation of basic and diluted EPS is as follows ($ in thousands, except for share and per share data): Three Months Ended Six Months Ended June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023 Net (loss) income $ ( 11,554 ) $ 4,253 $ ( 64,349 ) $ 40,931 Dividends on participating securities (1) ( 780 ) ( 1,217 ) ( 1,704 ) ( 2,418 ) Participating securities’ share in earnings - - - - Basic (loss) earnings $ ( 12,334 ) $ 3,036 $ ( 66,053 ) $ 38,513 Weighted average shares of common stock outstanding, (2) 139,078,117 138,399,446 138,934,615 138,392,666 Net (loss) income per share of common stock, basic and diluted $ ( 0.09 ) $ 0.02 $ ( 0.48 ) $ 0.28 (1) For the three months ended June 30, 2024 and 2023, dividends on participating securities excludes $ 22,000 and $ 4,000 of dividends on fully vested RSUs. For the six months ended June 30, 2024 and 2023, dividends on participating securities excludes $ 33,000 and $ 8,000 of dividends on fully vested RSUs. (2) Amounts as of June 30, 2024 and 2023 include 89,282 and 33,257 fully vested RSUs. For the three months ended June 30, 2024 and 2023 , 3,197,914 and 3,249,255 of weighted average unvested RSUs, respectively, were excluded from the calculation of diluted EPS because the effect was anti-dilutive. For the six months ended June 30, 2024 and 2023, 2,905,313 and 2,719,157 weighted average RSUs, respectively, were excluded from the calculation of diluted EPS because the effect was anti-dilutive. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2024 | |
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 and incentive fees ($ in thousands): Three Months Ended Six Months Ended June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023 Management fees $ 9,011 $ 9,641 $ 18,221 $ 19,297 Incentive fees - - - 1,558 Total $ 9,011 $ 9,641 $ 18,221 $ 20,855 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 $ 9.0 million and $ 9.3 million were accrued and were included in management fee payable – affiliate, on our consolidated balance sheets at June 30, 2024 and December 31, 2023 , respectively. 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. There were no accrued incentive fees on our consolidated balance sheets as of June 30, 2024 and December 31, 2023. 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 three months ended June 30, 2024 and 2023, we incurred $ 1.4 million and $ 1.3 million 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. For the six months ended June 30, 2024 and 2023, we incurred $ 2.2 million and $ 2.0 million of reimbursable expenses incurred on our behalf by our Manager. As of June 30, 2024 and December 31, 2023, $ 1.0 million and $ 1.0 million , respectively, of reimbursable expenses incurred on our behalf and due to our Manager are included in other liabilities on our consolidated balance sheets. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2024 | |
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 June 30, 2024, the maximum remaining number of shares that may be issued under the Plan is 3,960,509 shares. Awards granted under the Plan may be granted with the right to receive dividend equivalents and generally vest in equal installments on the specified anniversaries of the 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, for the three months ended June 30, 2024 and 2023 , we issued 5,027 and 4,007 , respectively, of deferred RSUs in lieu of cash fees to such directors and recognized a related expense of approximately $ 47,000 and $ 48,000 , respectively. For the six months ended June 30, 2024 and 2023, we issued 8,478 and 6,887 , respectively, of deferred RSUs in lieu of cash fees to such directors and recognized a related expense of approximately $ 94,000 and $ 91,000 , respectively. Such related expense 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. Effective January 1, 2024, our Non-Employee Director Compensation Program was amended to increase the value of the annual director grants and increase the annual retainer fees payable to the chair and members of the Nominating and Corporate Governing Committee, members of the Compensation Committee and the Lead Independent Director, as set forth in the Non-Employee Director Compensation Program. Eligible non-executive members of the Board were granted the 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 following table details the time-based RSUs granted to non-executive members of the Board: Date of Grant Total RSU Grant Grant Date Fair Value Per Share 6/1/2024 89,214 $ 8.07 6/1/2023 58,536 $ 10.25 6/1/2022 29,280 $ 20.49 Stock-Based Compensation Expense For the three months ended June 30, 2024 and 2023, we recognized $ 4.0 million and $ 4.4 million , respectively, of stock-based compensation expense related to the RSUs. For the six months ended June 30, 2024 and 2023, we recognized $ 8.4 million and $ 7.8 million , respectively, of stock-based compensation expense related to the RSUs. Such expense 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 June 30, 2024, total unrecognized compensation expense was $ 29.2 million based on the grant date fair value of RSUs granted. This expense is expected to be recognized over a remaining period of 1.7 years from June 30, 2024. 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 June 30, 2024, 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 and six months ended June 30, 2024 , we delivered 188,230 shares of our common stock for 360,316 vested RSUs and concurrently recorded a $ 1.4 million increase 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 periods. The following tables detail the time-based RSU activity during the six months ended June 30, 2024 and 2023: Six Months Ended June 30, 2024 Six Months Ended June 30, 2023 Number of Restricted Share Units Weighted Average Grant Date Fair Value Per Share Number of Restricted Share Units Weighted Average Grant Date Fair Value Per Share Unvested, beginning of period 2,526,202 $ 15.31 2,159,280 $ 18.74 Granted 1,264,214 $ 9.53 1,158,536 $ 11.25 Vested ( 420,186 ) $ 11.15 ( 29,280 ) $ 20.49 Forfeited ( 249,334 ) $ 12.85 ( 20,000 ) $ 18.72 Unvested, end of period 3,120,896 $ 13.72 3,268,536 $ 16.07 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2024 | |
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 taxable REIT subsidiary (“TRS”), as described below, we have not provided for current income tax expense related to our REIT taxable income for the three and six months ended June 30, 2024 and 2023, respectively. Additionally, no provision has been made for federal or state income taxes in the accompanying financial statements, as we believe we have met the prescribed requisite requirements. Our real estate owned 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. Given the TRS’s history of generating taxable losses, we are not able to conclude that it is more likely than not that we will realize the future benefit of the TRS’s deferred tax assets and recorded a full valuation allowance. Given the full valuation allowance, we did not record a provision for income taxes for the three and six months ended June 30, 2024 and 2023 , and we did no t have any deferred tax assets or deferred tax liabilities as of June 30, 2024 and December 31, 2023. The deferred tax asset and valuation allowance at June 30, 2024 were $ 26.7 million, respectively. The deferred tax asset and valuation allowance at December 31, 2023 were $ 21.7 million, respectively. 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 June 30, 2024 and December 31, 2023 , we have no t recorded any amounts for uncertain tax positions. 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. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2024 | |
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 June 30, 2024 and December 31, 2023, we have 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 June 30, 2024 and December 31, 2023, our remaining capital commitment to CMTG/TT was $ 72.9 million and $ 72.9 million, respectively. As of June 30, 2024 and December 31, 2023, we had aggregate unfunded loan commitments of $ 749.0 million and $ 1.1 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 June 30, 2024 ($ in thousands): Year Initial (2) Fully Extended (3) 2024 (1) $ 2,191,071 $ 934,237 2025 1,692,395 994,971 2026 1,456,720 1,619,057 2027 - 1,417,465 2028 - 374,456 Total $ 5,340,186 $ 5,340,186 (1) Includes financings outstanding of $ 395.9 million related to eight loans in maturity default with aggregate unpaid principal balance of $ 811.2 million. (2) Initial maturity is based on the earlier of the initial maturity date of each individual corresponding loan receivable or the maximum maturity date under the respective financing agreement, assuming conditions to extend are met. (3) Fully extended maturity is based on the earlier of the fully extended maturity date of each individual corresponding loan receivable or the maximum maturity date under the respective financing agreement, assuming conditions to extend are met. 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 | 6 Months Ended |
Jun. 30, 2024 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 15. Subsequent Events We have evaluated subsequent events through the filing of this Quarterly Report on Form 10-Q and determined that the following events have occurred: 1. We received the full repayment of two loans with a combined unpaid principal balance of $ 121.2 million as of June 30, 2024. 2. We received the full repayment of an office loan receivable with an unpaid principal balance of $ 122.5 million. Consideration received upon repayment included cash proceeds of $ 25.1 million, a loan receivable with a total unpaid principal balance of $ 100.0 million secured by a retail and entertainment property located in East Rutherford, NJ, and other forms of credit support. 3. The Company declared a dividend of $0.10 per share of common stock with respect to the third quarter of 2024. The dividend is payable on October 15, 2024 to stockholders of record as of the close of business on September 30, 2024 . |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2024 | |
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”). These unaudited consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2023, as filed with the Securities and Exchange Commission. In the opinion of management, all adjustments (consisting only of normal recurring adjustments) necessary for a fair statement of our financial position, results of operations and cash flows have been included. Our results of operations for the three and six months ended June 30, 2024 are not necessarily indicative of the results to be expected for the full year or any other future period. 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 June 30, 2024 and December 31, 2023 . 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 our current expected credit loss reserve, the determination of the fair value of real estate assets acquired and liabilities assumed, 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. |
Current Expected Credit Losses | Current Expected Credit Losses The current expected credit loss (“CECL”) reserve required under ASC 326, Financial Instruments – Credit Losses, 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. ASC 326 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 duration, 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 expected remaining duration. 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, whether the loan’s initial maturity is near-term, 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 June 30, 2024. 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 through their expected remaining duration, 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 ASC 326 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. |
Recent Accounting Guidance | Recent Accounting Guidance 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. The FASB issued ASU 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures” (“ASU 2023-07”). The standard provides improvements to reportable segment disclosure requirements for annual and interim reporting, primarily through enhanced disclosures about significant segment expenses. The standard is effective for annual periods beginning after December 15, 2023 and interim periods beginning after December 15, 2024, with early adoption permitted. The adoption of ASU 2023-07 is not expected to have a material impact on our consolidated financial statements. |
Loans Portfolio (Tables)
Loans Portfolio (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Receivables [Abstract] | |
Schedule of Loan Receivable | Our loan portfolio as of June 30, 2024 was comprised of the following loans ($ in thousands, except for number of loans): Number of Loan Commitment (1) Unpaid Principal Balance Carrying (2) Weighted Average Spread (3) Weighted Average Interest Rate (4) Loans receivable held-for-investment: Variable: Senior loans (5) 57 $ 7,513,581 $ 6,764,591 $ 6,671,989 + 3.76% 8.49 % Subordinate loans 1 30,200 30,200 30,351 + 12.86% 18.20 % 58 7,543,781 6,794,791 6,702,340 + 3.80% 8.53 % Fixed: Senior loans (5) 2 $ 7,597 $ 7,597 $ 7,809 N/A 8.25 % Subordinate loans 2 125,886 125,886 124,847 N/A 8.44 % 4 133,483 133,483 132,656 8.43 % Total/Weighted Average 62 $ 7,677,264 $ 6,928,274 $ 6,834,996 N/A 8.53 % General CECL reserve ( 125,479 ) Loans receivable held-for-investment, net $ 6,709,517 (1) Loan commitment represents principal outstanding plus remaining unfunded loan commitments. (2) Net of specific CECL reserve s of $ 78.3 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 June 30, 2024 was 5.34 % . Weighted average is based on outstanding principal as of June 30, 2024 . 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 SOFR floors (if applicable). Weighted average is based on outstanding principal as of June 30, 2024 and includes loans on non-accrual status. For loans placed on non-accrual, the spread 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. Our loans receivable portfolio as of December 31, 2023 was comprised of the following loans ($ in thousands, except for number of loans): Number of Loan Commitment (1) Unpaid Principal Balance Carrying (2) Weighted Average Spread (3) Weighted Average Interest Rate (4) Loans receivable held-for-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 8.70 % 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 is expressed as a spread over the relevant floating benchmark rates. SOFR as of December 31, 2023 was 5.35 % . Weighted average is based on unpaid principal balance 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 applicable floating benchmark rate (if applicable), including SOFR floors (if applicable). Weighted average is based on unpaid principal balance 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. |
Schedule of Loan Receivable Portfolio | Activity relating to the loans receivable portfolio for the six months ended June 30, 2024 ($ in thousands): Unpaid Principal Balance Deferred Fees Specific CECL Reserve Carrying Value (1) Balance at December 31, 2023 $ 7,044,524 $ ( 24,141 ) $ ( 72,587 ) $ 6,947,796 Advances on existing loans 263,427 - - 263,427 Non-cash advances in lieu of interest 23,205 - - 23,205 Origination fees, extension fees and exit fees - ( 1,423 ) - ( 1,423 ) Repayments of loans receivable ( 184,971 ) - - ( 184,971 ) Repayments of non-cash advances in lieu of interest ( 1,865 ) - - ( 1,865 ) Accretion of fees - 8,960 - 8,960 Provision for specific CECL reserve - - ( 48,517 ) ( 48,517 ) Transfer to loans held-for-sale ( 216,046 ) 1,603 42,266 ( 172,177 ) Principal charge-offs - - 561 561 Balance at June 30, 2024 $ 6,928,274 $ ( 15,001 ) $ ( 78,277 ) $ 6,834,996 General CECL reserve ( 125,479 ) Carrying Value $ 6,709,517 (1) Balance at December 31, 2023 does not include general CECL reserve. Loan Participations Sold Our loan participations sold as of June 30, 2024 are summarized as follows ($ in thousands): Contractual Maximum Borrowing Outstanding Carrying Carrying Value 10/18/2024 (1) 10/18/2024 $ 100,634 $ 100,759 $ 183,992 Total $ 100,634 $ 100,759 $ 183,992 (1) Carrying value of collateral includes cash reserve balances held by our financing counterparty. Our loan participations sold as of December 31, 2023 are summarized as follows ($ in thousands): Contractual Maximum Borrowing Outstanding Carrying Carrying Value 10/18/2024 (1) 10/18/2024 $ 100,634 $ 100,508 $ 182,723 12/31/2024 12/31/2025 20,000 20,000 157,346 Total $ 120,634 $ 120,508 $ 340,069 (1) Carrying value of collateral includes cash reserve balances held by our financing counterparty. |
Schedule of Loans Receivable Held-for-sale | our loans receivable held-for-sale 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 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 June 30, 2024 and December 31, 2023 ($ in thousands): June 30, 2024 December 31, 2023 Loan Type Carrying Value (1) Percentage Carrying Value (2) Percentage Senior loans (3) $ 6,679,798 98 % $ 6,792,666 98 % Subordinate loans 155,198 2 % 155,130 2 % $ 6,834,996 100 % $ 6,947,796 100 % General CECL reserve ( 125,479 ) ( 70,371 ) $ 6,709,517 $ 6,877,425 Property Type Carrying Value (1) Percentage Carrying Value (2) Percentage Multifamily $ 2,721,317 40 % $ 2,829,436 41 % Hospitality 1,233,207 18 % 1,339,067 19 % Office 974,943 14 % 961,744 14 % Mixed-Use (4) 604,985 9 % 596,919 9 % Other 567,061 8 % 482,582 7 % Land 518,645 8 % 518,252 7 % For Sale Condo 214,838 3 % 219,796 3 % $ 6,834,996 100 % $ 6,947,796 100 % General CECL reserve ( 125,479 ) ( 70,371 ) $ 6,709,517 $ 6,877,425 Geographic Location Carrying Value (1) Percentage Carrying Value (2) Percentage United States West $ 2,445,836 36 % $ 2,518,716 35 % Northeast 1,763,775 26 % 1,861,239 27 % Mid Atlantic 776,594 11 % 761,588 11 % Southeast 763,529 11 % 735,011 11 % Southwest 600,746 9 % 592,324 9 % Midwest 482,617 7 % 477,019 7 % Other 1,899 0 % 1,899 0 % $ 6,834,996 100 % $ 6,947,796 100 % General CECL reserve ( 125,479 ) ( 70,371 ) $ 6,709,517 $ 6,877,425 (1) Net of specific CECL r eserves of $ 78.3 million at June 30, 2024 . (2) Net of specific CECL reserves of $ 72.6 million at December 31, 2023 . (3) Senior loans include senior mortgages and similar credit quality loans, including related contiguous subordinate loans and pari passu participations in senior mortgage loans. (4) At June 30, 2024 , mixed-use comprises of 4 % office, 2 % retail, 2 % multifamily, 1 % hospitality, and immaterial amounts of for sale condo. At December 31, 2023, mixed-use comprises of 3 % office, 2 % retail, 2 % multifamily, 1 % hospitality, and immaterial amounts of for sale condo. |
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 three and six months ended June 30, 2024 and 2023, respectively ($ in thousands): Three Months Ended Six Months Ended June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023 Coupon interest $ 148,319 $ 171,018 $ 301,326 $ 327,634 Interest on cash, cash equivalents, and other income 2,485 4,378 5,690 6,681 Accretion of fees 4,327 5,339 8,960 10,586 Total interest and related income (1) $ 155,131 $ 180,735 $ 315,976 $ 344,901 (1) For the three months ended June 30, 2024 and 2023, we did not recognize any default interest, late fees, pre-payment penalties, and/or accelerated fees. For the six months ended June 30, 2024 and 2023, we recognized $ 1.3 million and $ 0.3 million , respectively, in default interest, late fees, pre-payment penalties, and/or accelerated fees . |
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 June 30, 2024 and December 31, 2023 ($ in thousands): June 30, 2024 Risk Rating Number of Loans Unpaid Principal Balance Carrying Value (1) % of Total of Carrying Value 1 - $ - $ - 0 % 2 - - - 0 % 3 39 4,483,181 4,472,171 65 % 4 18 2,106,138 2,102,826 31 % 5 5 338,955 259,999 4 % 62 $ 6,928,274 $ 6,834,996 100 % General CECL reserve ( 125,479 ) $ 6,709,517 (1) Net of specific CECL reserves of $ 78.3 million . 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. |
Summary of Carrying Value and Significant Characteristics of Loans Receivable on Non-accrual Status | The following table presents the carrying value and significant characteristics of our loans receivable held-for-investment on non-accrual status as of June 30, 2024 ($ in thousands): Property Type Location Risk Rating Unpaid Principal Balance Carrying Value Before Specific CECL Reserve Specific Net Carrying Value Interest Recognition Method / Land VA 5 $ 152,236 $ 152,236 $ ( 32,136 ) $ 120,100 Cost Recovery / 1/1/2023 Office CA 5 112,442 112,163 ( 20,863 ) 91,300 Cash Basis / 4/1/2023 Office CA 4 98,214 97,827 - 97,827 Cost Recovery / 9/1/2023 Multifamily NV 4 96,529 96,082 - 96,082 Cash Basis / 1/1/2024 Land NY 4 87,741 88,166 - 88,166 Cash Basis / 4/1/2024 Office GA 5 71,492 71,094 ( 24,394 ) 46,700 Cost Recovery / 9/1/2023 Land NY 4 67,000 67,000 - 67,000 Cash Basis / 11/1/2021 Multifamily AZ 4 50,164 49,957 - 49,957 Cash Basis / 1/1/2024 Multifamily TX 4 39,279 39,085 - 39,085 Cash Basis / 1/1/2024 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 (1) $ 777,882 $ 776,393 $ ( 78,277 ) $ 698,116 (1) Loans classified as non-accrual represented 10.2 % of the total loans receivable held-for-investment at June 30, 2024 , based on carrying value net of any specific CECL reserves. Excludes five loans with an aggregate carrying value of $ 600.7 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 June 30, 2024 , we have two loans with an aggregate carrying value of $ 479.4 million that are delinquent on interest payments but remains on accrual status as the interest is deemed collectible based on the underlying collateral value. 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 / Multifamily (1) CA 4 $ 214,479 $ 212,877 $ - $ 212,877 Cost recovery / 10/1/2023 Land 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) $ 717,738 $ 715,070 $ ( 72,587 ) $ 642,483 (1) This loan was sold in April 2024. (2) During the year ended December 31, 2023, interest income of $ 0.3 million was recognized on a cash basis for this loan while on non-accrual status . (3) Loans classified as non-accrual represented 9.2 % of the 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. |
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 three and six months ended June 30, 2024 and 2023, respectively ($ in thousands): General CECL Reserve Specific CECL Reserve Loans Receivable Held-for-Investment Unfunded Loan Commitments (1) Total General CECL Reserve Total CECL Reserve Total reserve, December 31, 2022 $ 60,300 $ 68,347 $ 17,715 $ 86,062 $ 146,362 Reversal - ( 1,021 ) ( 2,218 ) ( 3,239 ) ( 3,239 ) Total reserve, March 31, 2023 $ 60,300 $ 67,326 $ 15,497 $ 82,823 $ 143,123 Provision (reversal) 44,588 ( 1,628 ) ( 1,485 ) ( 3,113 ) 41,475 Principal charge-offs ( 66,935 ) - - - ( 66,935 ) Total reserve, June 30, 2023 $ 37,953 $ 65,698 $ 14,012 $ 79,710 $ 117,663 Total reserve, December 31, 2023 $ 72,587 $ 70,371 $ 9,726 $ 80,097 $ 152,684 Provision (reversal) 47,285 23,358 ( 683 ) 22,675 69,960 Principal charge-offs ( 42,266 ) - - - ( 42,266 ) Total reserve, March 31, 2024 $ 77,606 $ 93,729 $ 9,043 $ 102,772 $ 180,378 Provision 1,232 31,750 946 32,696 33,928 Principal charge-offs ( 561 ) - - - ( 561 ) Total reserve, June 30, 2024 $ 78,277 $ 125,479 $ 9,989 $ 135,468 $ 213,745 Reserve at June 30, 2024 (2) 1.1 % 2.0 % 3.1 % (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 June 30, 2024 . |
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 June 30, 2024 ($ in thousands): Property Type Location Unpaid Principal Balance Carrying Value Before Specific CECL Reserve Specific CECL Reserve Net Carrying Value Land VA $ 152,236 $ 152,236 $ 32,136 $ 120,100 Office CA 112,442 112,163 20,863 91,300 Office GA 71,492 71,094 24,394 46,700 Other NY 886 884 884 - Total $ 337,056 $ 336,377 $ 78,277 $ 258,100 |
Schedule of Carrying Value of Loan Portfolio Based on Internal Risk Ratings | Our primary credit quality indicator is our internal risk rating, which is further discussed above. The following table presents the carrying value of our loans receivable held-for-investment as of June 30, 2024 by year of origination and risk rating, and the principal charge-offs recognized during the six months ended June 30, 2024 ($ in thousands): Carrying Value by Origination Year as of June 30, 2024 Risk Rating Number of Loans Carrying Value (1) 2024 2023 2022 2021 2020 2019 2018 1 - $ - $ - $ - $ - $ - $ - $ - $ - 2 - - - - - - - - - 3 39 4,472,171 - 101,093 2,018,589 1,104,317 - 808,669 439,503 4 18 2,102,826 - - 542,904 570,590 87,750 734,864 166,718 5 5 259,999 - - - 46,700 91,300 1,899 120,100 62 $ 6,834,996 $ - $ 101,093 $ 2,561,493 $ 1,721,607 $ 179,050 $ 1,545,432 $ 726,321 Principal Charge-offs (2) $ - $ - $ - $ 42,827 $ - $ - $ - $ - (1) Net of specific CECL reserves o f $ 78.3 million. (2) Principal charge-off recognized in connection with the sale of a senior loan in April 2024. |
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: June 30, 2024 December 31, 2023 Weighted average yield to maturity (1) 9.0 % 9.1 % Weighted average term to initial maturity 0.8 years 1.2 years Weighted average term to fully extended maturity (2) 2.2 years 2.6 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 June 30, 2024 and 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 %. |
Real Estate Owned (Tables)
Real Estate Owned (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Real Estate Owned, Disclosure of Detailed Components [Abstract] | |
Summary of Additional Detail Related to the Company's Hotel Portfolio and Mixed-use Real Estate Owned, Net | The following table presents detail related to our hotel portfolio and mixed-use real estate owned, net as of June 30, 2024 and December 31, 2023 ($ in thousands): June 30, 2024 December 31, 2023 Land $ 235,998 $ 235,998 Building 295,651 295,651 Capital improvements 5,017 4,436 Tenant improvements 4,414 4,414 Furniture, fixtures and equipment 6,500 6,500 Real estate owned 547,580 546,999 Less: accumulated depreciation ( 28,861 ) ( 24,040 ) Real estate owned, net $ 518,719 $ 522,959 |
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): Three Months Ended Six Months Ended June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023 Revenue Hotel portfolio $ 20,728 $ 19,866 $ 32,745 $ 30,829 Mixed-Use property fixed rents 2,094 - 4,172 - Mixed-Use property straight-line rent adjustment 32 - 63 - Mixed-Use property variable rents 81 - 220 - Mixed-Use property amortization of above and below market leases, net ( 354 ) - ( 708 ) - Total revenue from real estate owned $ 22,581 $ 19,866 $ 36,492 $ 30,829 Operating expenses Hotel portfolio $ 12,647 $ 11,269 $ 24,269 $ 21,268 Mixed-Use property 1,212 - 2,470 - Total operating expenses from real estate owned $ 13,859 $ 11,269 $ 26,739 $ 21,268 |
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 (1) $ 4,156 2025 8,383 2026 8,415 2027 8,432 2028 8,323 Thereafter 27,462 Total $ 65,171 (1) Contractual lease payments due for the remaining six months of 2024. |
Schedule of Lease Intangibles | As of June 30, 2024 and December 31, 2023, our lease intangibles are comprised of the following ($ in thousands): Intangible June 30, 2024 December 31, 2023 In-place, above market, and other lease values $ 24,289 $ 24,289 Less: accumulated amortization ( 2,592 ) ( 1,296 ) In-place, above market, and other lease values, net $ 21,697 $ 22,993 Below market lease values $ ( 4,209 ) $ ( 4,209 ) Less: accumulated amortization 377 188 Below market lease values, net $ ( 3,832 ) $ ( 4,021 ) |
Estimated Amortization of Intangibles for Next Five Years | As of June 30, 2024, 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 (3) $ 401 $ ( 895 ) $ 188 2025 802 ( 1,791 ) 377 2026 802 ( 1,791 ) 377 2027 802 ( 1,791 ) 377 2028 769 ( 1,771 ) 377 Thereafter 2,025 ( 8,057 ) 2,136 Total $ 5,601 $ ( 16,096 ) $ 3,832 (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. (3) Represents amortization for the remaining six months of 2024. |
Debt Obligations (Tables)
Debt Obligations (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Summary of Financings | The following table summarizes our financings as of June 30, 2024 and December 31, 2023 ($ in thousands): June 30, 2024 December 31, 2023 Capacity Borrowing Outstanding Weighted (1) Capacity Borrowing Outstanding Weighted (1) Repurchase agreements and term (2) $ 5,626,006 $ 3,990,887 + 2.69 % $ 5,709,907 $ 4,271,112 + 2.76 % Loan participations sold 100,634 100,634 + 4.25 % 120,634 120,634 + 4.15 % Notes payable 359,667 247,027 + 3.44 % 419,867 286,827 + 3.10 % Secured term loan 721,638 721,638 + 4.50 % 725,452 725,452 + 4.50 % Debt related to real estate owned 280,000 280,000 + 2.90 % 290,000 290,000 + 2.83 % Total/Weighted Average $ 7,087,945 $ 5,340,186 + 3.01 % $ 7,265,860 $ 5,694,025 + 3.03 % (1) Weighted average spread over the applicable benchmark rate is based on unpaid principal balance. SOFR as of June 30, 2024 and December 31, 2023 was 5.34 % and 5.35 % , respectively. (2) The repurchase agreements and term participation facility are partially recourse to us. As of June 30, 2024 and December 31, 2023 , the weighted average recourse on both our repurchase agreements and term participation facility was 29 % and 30 %, respectively. |
Summary of Repurchase Agreements | The following table summarizes our repurchase agreements by lender as of June 30, 2024 ($ in thousands): Lender Initial Maturity Fully (1) Maximum Borrowing Undrawn Carrying Value of Collateral (2) JP Morgan Chase Bank, N.A. 7/28/2026 7/28/2028 $ 2,411,713 $ 2,268,143 $ 143,570 $ 3,284,536 Morgan Stanley Bank, N.A. 1/26/2025 1/26/2025 1,000,000 549,169 450,831 798,327 Goldman Sachs Bank USA 5/31/2025 5/31/2027 500,000 143,215 356,785 187,802 Barclays Bank PLC 12/20/2024 12/20/2025 500,000 - 500,000 - Wells Fargo Bank, N.A. 9/29/2024 9/29/2026 750,000 660,167 89,833 895,896 Total $ 5,161,713 $ 3,620,694 $ 1,541,019 $ 5,166,561 (1) Facility maturity dates may be extended , subject to meeting prescribed conditions . (2) Net of specific CECL reserves, if any. The Deutsche Bank AG, New York Branch repurchase agreement reached its maturity in June 2024, upon which the facility was terminated. The following table summarizes our repurchase agreements by lender as of December 31, 2023 ($ in thousands): Lender Initial Maturity Fully (1) Maximum Borrowing Undrawn Carrying Value of Collateral (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 1/26/2025 1,000,000 735,393 264,607 1,023,295 Goldman Sachs Bank USA 5/31/2025 (3) 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, subject to meeting prescribed conditions. (2) Net of specific CECL reserves, if any. (3) Assumes as of right extension is exercised, subject to meeting prescribed conditions. |
Schedule of Loan Receivable Portfolio | Activity relating to the loans receivable portfolio for the six months ended June 30, 2024 ($ in thousands): Unpaid Principal Balance Deferred Fees Specific CECL Reserve Carrying Value (1) Balance at December 31, 2023 $ 7,044,524 $ ( 24,141 ) $ ( 72,587 ) $ 6,947,796 Advances on existing loans 263,427 - - 263,427 Non-cash advances in lieu of interest 23,205 - - 23,205 Origination fees, extension fees and exit fees - ( 1,423 ) - ( 1,423 ) Repayments of loans receivable ( 184,971 ) - - ( 184,971 ) Repayments of non-cash advances in lieu of interest ( 1,865 ) - - ( 1,865 ) Accretion of fees - 8,960 - 8,960 Provision for specific CECL reserve - - ( 48,517 ) ( 48,517 ) Transfer to loans held-for-sale ( 216,046 ) 1,603 42,266 ( 172,177 ) Principal charge-offs - - 561 561 Balance at June 30, 2024 $ 6,928,274 $ ( 15,001 ) $ ( 78,277 ) $ 6,834,996 General CECL reserve ( 125,479 ) Carrying Value $ 6,709,517 (1) Balance at December 31, 2023 does not include general CECL reserve. Loan Participations Sold Our loan participations sold as of June 30, 2024 are summarized as follows ($ in thousands): Contractual Maximum Borrowing Outstanding Carrying Carrying Value 10/18/2024 (1) 10/18/2024 $ 100,634 $ 100,759 $ 183,992 Total $ 100,634 $ 100,759 $ 183,992 (1) Carrying value of collateral includes cash reserve balances held by our financing counterparty. Our loan participations sold as of December 31, 2023 are summarized as follows ($ in thousands): Contractual Maximum Borrowing Outstanding Carrying Carrying Value 10/18/2024 (1) 10/18/2024 $ 100,634 $ 100,508 $ 182,723 12/31/2024 12/31/2025 20,000 20,000 157,346 Total $ 120,634 $ 120,508 $ 340,069 (1) Carrying value of collateral includes cash reserve balances held by our financing counterparty. |
Schedule of Term Participation Facility | Our term participation facility as of June 30, 2024 is summarized as follows ($ in thousands): Contractual Maturity Date Borrowing Outstanding Carrying Value Carrying Value 10/11/2028 $ 370,193 $ 370,193 $ 624,263 Our term participation facility as of December 31, 2023 is summarized as follows ($ in thousands): Contractual Maturity Date Borrowing Outstanding Carrying Value Carrying Value 10/11/2028 $ 465,434 $ 465,434 $ 797,335 |
Summary of Notes Payable | Our notes payable as of June 30, 2024 are summarized as follows ($ in thousands): Contractual Maximum Borrowing Outstanding Carrying Carrying Value 5/13/2026 5/13/2027 $ 52,973 $ 52,326 $ 119,036 2/2/2026 2/2/2027 55,004 54,295 67,583 9/2/2026 9/2/2027 79,917 78,793 112,340 10/13/2025 10/13/2026 59,133 58,604 97,869 Total $ 247,027 $ 244,018 $ 396,828 Our notes payable as of December 31, 2023 are summarized as follows ($ in thousands): Contractual Maximum Borrowing Outstanding Carrying Carrying Value 12/31/2024 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 |
Summary of Secured Term Loan | The secured term loan as of June 30, 2024 is summarized as follows ($ in thousands): Contractual Maturity Date Stated Rate (1) Interest Rate Borrowing Outstanding Carrying Value 8/9/2026 S + 4.50% 9.94 % $ 721,638 $ 711,177 (1) SOFR at June 30, 2024 was 5.34 % . 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) SOFR at December 31, 2023 was 5.35 % . |
Summary of additional detail related to the company's real estate portfolio | Our debt related to real estate owned as of June 30, 2024 is summarized as follows ($ in thousands): Contractual Maturity Date Stated Rate (1) Net Interest Rate (1) Borrowing Outstanding Carrying Value 11/9/2024 S + 2.90 % 7.90 % $ 280,000 $ 278,600 (1) SOFR at June 30, 2024 was 5.34 % , which exceeded the 5.00 % ceiling provided by our interest rate cap. See Note 7 - Derivatives 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) Borrowing Outstanding Carrying Value 2/9/2024 S + 2.83 % 5.83 % $ 290,000 $ 289,913 (1) SOFR at December 31, 2023 was 5.35 % , 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 our secured financings, debt related to real estate owned and secured term loan for the three and six months ended June 30, 2024 and 2023, respectively ($ in thousands): Three Months Ended Six Months Ended June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023 Interest expense on secured financings $ 90,357 $ 95,860 $ 183,173 $ 178,810 Interest expense on secured term loan 18,174 17,942 36,419 35,183 Amortization of deferred financing costs 4,694 5,874 9,564 11,710 Interest and related expense 113,225 119,676 229,156 225,703 Interest expense on debt related to real estate owned (1) 6,869 5,865 13,198 11,309 Total interest and related expense $ 120,094 $ 125,541 $ 242,354 $ 237,012 (1) For the three months ended June 30, 2024 and 2023, interest on debt related to real estate owned includes $ 1.1 million and $ 132,000 of amortization of deferred financing costs, respectively. For the six months ended June 30, 2024 and 2023, interest on debt related to real estate owned includes $ 1.5 million and $ 263,000 of amortization of financing costs, respectively. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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): June 30, 2024 Carrying Unpaid Principal Fair Value Hierarchy Level Value Balance Fair Value Level 1 Level 2 Level 3 Loans receivable held-for-investment, net $ 6,709,517 $ 6,928,274 $ 6,688,243 $ - $ - $ 6,688,243 Repurchase agreements 3,620,694 3,620,694 3,620,694 - - 3,620,694 Term participation facility 370,193 370,193 370,677 - - 370,677 Loan participations sold, net 100,759 100,634 100,297 - - 100,297 Notes payable, net 244,018 247,027 244,781 - - 244,781 Secured term loan, net 711,177 721,638 664,809 - - 664,809 Debt related to real estate owned, net 278,600 280,000 278,318 - - 278,318 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 |
Equity (Tables)
Equity (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Equity [Abstract] | |
Schedule of Common Stock Outstanding | The following table provides a summary of the number of shares of common stock outstanding during the six months ended June 30, 2024 and 2023, respectively: Six Months Ended Common Stock Outstanding June 30, 2024 June 30, 2023 Beginning balance 138,745,357 138,376,144 Issuance of common stock in exchange for fully vested RSUs 209,076 9,760 Ending balance 138,954,433 138,385,904 |
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, 2024 June 30, 2024 Amount Per Share Amount Per Share Dividends declared - common stock $ 34,687 $ 0.25 $ 34,739 $ 0.25 Record Date - common stock March 29, 2024 June 28, 2024 Payment Date - common stock April 15, 2024 July 15, 2024 For the Quarter Ended March 31, 2023 June 30, 2023 Amount Per Share Amount Per Share Dividends declared - common stock $ 51,199 $ 0.37 $ 51,203 $ 0.37 Record Date - common stock March 31, 2023 June 30, 2023 Payment Date - common stock April 14, 2023 July 14, 2023 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Earning per Share | As of June 30, 2024 and 2023, we ha d no dilutive securities. As a r esult, basic and diluted EPS are the same. The calculation of basic and diluted EPS is as follows ($ in thousands, except for share and per share data): Three Months Ended Six Months Ended June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023 Net (loss) income $ ( 11,554 ) $ 4,253 $ ( 64,349 ) $ 40,931 Dividends on participating securities (1) ( 780 ) ( 1,217 ) ( 1,704 ) ( 2,418 ) Participating securities’ share in earnings - - - - Basic (loss) earnings $ ( 12,334 ) $ 3,036 $ ( 66,053 ) $ 38,513 Weighted average shares of common stock outstanding, (2) 139,078,117 138,399,446 138,934,615 138,392,666 Net (loss) income per share of common stock, basic and diluted $ ( 0.09 ) $ 0.02 $ ( 0.48 ) $ 0.28 (1) For the three months ended June 30, 2024 and 2023, dividends on participating securities excludes $ 22,000 and $ 4,000 of dividends on fully vested RSUs. For the six months ended June 30, 2024 and 2023, dividends on participating securities excludes $ 33,000 and $ 8,000 of dividends on fully vested RSUs. (2) Amounts as of June 30, 2024 and 2023 include 89,282 and 33,257 fully vested RSUs. |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Related Party Transactions [Abstract] | |
Summary of Management and Incentive Fees | The following table summarizes our management and incentive fees ($ in thousands): Three Months Ended Six Months Ended June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023 Management fees $ 9,011 $ 9,641 $ 18,221 $ 19,297 Incentive fees - - - 1,558 Total $ 9,011 $ 9,641 $ 18,221 $ 20,855 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Time-based RSUs Granted to Non-executive Members of the Board | The following table details the time-based RSUs granted to non-executive members of the Board: Date of Grant Total RSU Grant Grant Date Fair Value Per Share 6/1/2024 89,214 $ 8.07 6/1/2023 58,536 $ 10.25 6/1/2022 29,280 $ 20.49 |
Summary of Time-Based Restricted Stock Units Activity | The following tables detail the time-based RSU activity during the six months ended June 30, 2024 and 2023: Six Months Ended June 30, 2024 Six Months Ended June 30, 2023 Number of Restricted Share Units Weighted Average Grant Date Fair Value Per Share Number of Restricted Share Units Weighted Average Grant Date Fair Value Per Share Unvested, beginning of period 2,526,202 $ 15.31 2,159,280 $ 18.74 Granted 1,264,214 $ 9.53 1,158,536 $ 11.25 Vested ( 420,186 ) $ 11.15 ( 29,280 ) $ 20.49 Forfeited ( 249,334 ) $ 12.85 ( 20,000 ) $ 18.72 Unvested, end of period 3,120,896 $ 13.72 3,268,536 $ 16.07 |
Commitments and Contingencies (
Commitments and Contingencies (Table) | 6 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Contractual Maturity Payment | Our contractual payments due under all financings were as follows as of June 30, 2024 ($ in thousands): Year Initial (2) Fully Extended (3) 2024 (1) $ 2,191,071 $ 934,237 2025 1,692,395 994,971 2026 1,456,720 1,619,057 2027 - 1,417,465 2028 - 374,456 Total $ 5,340,186 $ 5,340,186 (1) Includes financings outstanding of $ 395.9 million related to eight loans in maturity default with aggregate unpaid principal balance of $ 811.2 million. (2) Initial maturity is based on the earlier of the initial maturity date of each individual corresponding loan receivable or the maximum maturity date under the respective financing agreement, assuming conditions to extend are met. (3) Fully extended maturity is based on the earlier of the fully extended maturity date of each individual corresponding loan receivable or the maximum maturity date under the respective financing agreement, assuming conditions to extend are met. |
Loan Portfolio - Schedule of Lo
Loan Portfolio - Schedule of Loans Receivable (Details) $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2024 USD ($) Loan | Dec. 31, 2023 USD ($) Loan | |||
Schedule Of Loans Receivables Past Due [Line Items] | ||||
Loan Commitment | $ 7,677,264 | [1] | $ 8,121,436 | [2] |
Unpaid Principal Balance | 6,928,274 | 7,044,524 | ||
Loans receivable held-for-investment | $ 6,834,996 | [3] | $ 6,947,796 | [4] |
Number of Loans | Loan | 62 | 65 | ||
Weighted Average Spread | 0 | 0 | ||
Weighted Average Interest Rate | 8.53% | [5] | 8.70% | [6] |
General CECL reserve | $ (125,479) | [3],[7] | $ (70,371) | [4],[8] |
Loans receivable held-for-investment, net | 6,709,517 | [3] | 6,877,425 | [4] |
Variable Senior Loans | ||||
Schedule Of Loans Receivables Past Due [Line Items] | ||||
Loan Commitment | 7,513,581 | [1],[9] | 7,952,806 | [2],[10] |
Unpaid Principal Balance | 6,764,591 | [9] | 6,875,894 | [10] |
Loans receivable held-for-investment | $ 6,671,989 | [3],[9] | $ 6,779,899 | [4],[10] |
Number of Loans | Loan | 57 | [9] | 60 | [10] |
Weighted Average Interest Rate | 8.49% | [5],[9] | 8.67% | [6],[10] |
Variable Senior Loans | Secured Overnight Financing Rate (SOFR) | ||||
Schedule Of Loans Receivables Past Due [Line Items] | ||||
Weighted Average Spread | + 3.76% | [9],[11] | + 3.87% | [10],[12] |
Variable Subordinate Loans | ||||
Schedule Of Loans Receivables Past Due [Line Items] | ||||
Loan Commitment | $ 30,200 | [1] | $ 30,200 | [2] |
Unpaid Principal Balance | 30,200 | 30,200 | ||
Loans receivable held-for-investment | $ 30,351 | [3] | $ 30,313 | [4] |
Number of Loans | Loan | 1 | 1 | ||
Weighted Average Interest Rate | 18.20% | [5] | 18.21% | [6] |
Variable Subordinate Loans | Secured Overnight Financing Rate (SOFR) | ||||
Schedule Of Loans Receivables Past Due [Line Items] | ||||
Weighted Average Spread | + 12.86% | [11] | + 12.86% | [12] |
Variable Loan | ||||
Schedule Of Loans Receivables Past Due [Line Items] | ||||
Loan Commitment | $ 7,543,781 | [1] | $ 7,983,006 | [2] |
Unpaid Principal Balance | 6,794,791 | 6,906,094 | ||
Loans receivable held-for-investment | $ 6,702,340 | [3] | $ 6,810,212 | [4] |
Number of Loans | Loan | 58 | 61 | ||
Weighted Average Interest Rate | 8.53% | [5] | 8.71% | [6] |
Variable Loan | Secured Overnight Financing Rate (SOFR) | ||||
Schedule Of Loans Receivables Past Due [Line Items] | ||||
Weighted Average Spread | + 3.80% | [11] | + 3.91% | [12] |
Fixed Senior Loans | ||||
Schedule Of Loans Receivables Past Due [Line Items] | ||||
Loan Commitment | $ 7,597 | [1],[9] | $ 12,544 | [2],[10] |
Unpaid Principal Balance | 7,597 | [9] | 12,544 | [10] |
Loans receivable held-for-investment | $ 7,809 | [3],[9] | $ 12,767 | [4],[10] |
Number of Loans | Loan | 2 | [9] | 2 | [10] |
Weighted Average Interest Rate | 8.25% | [5],[9] | 8.49% | [6],[10] |
Fixed Subordinate Loans | ||||
Schedule Of Loans Receivables Past Due [Line Items] | ||||
Loan Commitment | $ 125,886 | [1] | $ 125,886 | [2] |
Unpaid Principal Balance | 125,886 | 125,886 | ||
Loans receivable held-for-investment | $ 124,847 | [3] | $ 124,817 | [4] |
Number of Loans | Loan | 2 | 2 | ||
Weighted Average Interest Rate | 8.44% | [5] | 8.44% | [6] |
Fixed Loan | ||||
Schedule Of Loans Receivables Past Due [Line Items] | ||||
Loan Commitment | $ 133,483 | [1] | $ 138,430 | [2] |
Unpaid Principal Balance | 133,483 | 138,430 | ||
Loans receivable held-for-investment | $ 132,656 | [3] | $ 137,584 | [4] |
Number of Loans | Loan | 4 | 4 | ||
Weighted Average Interest Rate | 8.43% | [5] | 8.44% | [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 reserve s of $ 78.3 million. Net of specific CECL reserves of $ 72.6 million. Reflects the weighted average interest rate based on the applicable floating benchmark rate (if applicable), including SOFR floors (if applicable). Weighted average is based on outstanding principal as of June 30, 2024 and includes loans on non-accrual status. For loans placed on non-accrual, the spread 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 SOFR floors (if applicable). Weighted average is based on unpaid principal balance 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 %. Net of specific CECL reserves of $ 78.3 million . Net of specific CECL reserves of $ 72.6 million. 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. 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 June 30, 2024 was 5.34 % . Weighted average is based on outstanding principal as of June 30, 2024 . For loans placed on non-accrual, the spread used in calculating the weighted average spread is 0 %. The weighted average is expressed as a spread over the relevant floating benchmark rates. SOFR as of December 31, 2023 was 5.35 % . Weighted average is based on unpaid principal balance 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 | 6 Months Ended | 12 Months Ended |
Jun. 30, 2024 | Dec. 31, 2023 | |
Schedule Of Loans Receivables Past Due [Line Items] | ||
Specific CECL reserves | $ 78.3 | $ 72.6 |
Weighted Average Spread | 0 | 0 |
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | ||
Schedule Of Loans Receivables Past Due [Line Items] | ||
One-month SOFR | 5.34% | 5.35% |
Loan Portfolio - Additional Inf
Loan Portfolio - Additional Information (Details) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Apr. 30, 2024 USD ($) | Jan. 31, 2024 USD ($) Loan | Jun. 30, 2024 USD ($) | Jun. 30, 2024 USD ($) | Jun. 30, 2023 USD ($) | Dec. 31, 2023 USD ($) | Jun. 30, 2022 | |
Schedule of Loans Receivable Allowance for Credit Losses [Line Items] | |||||||
Unfunded loan commitment loans held for sale | $ 44,900,000 | $ 105,000,000 | |||||
Loans receivable held-for-sale | $ 0 | $ 0 | $ 261,709,000 | ||||
Loan receivable held for sale charge off | 7,468,000 | ||||||
Increase in specific CECL reserve | 55,400,000 | $ 44,600,000 | |||||
Loans receivable reversal of general Cecl reserve | 48,500,000 | 48,500,000 | 6,400,000 | ||||
Specific CECL reserves | 78,300,000 | $ 72,600,000 | |||||
Provision (reversal) of current expected credit loss | 103,900,000 | 38,200,000 | |||||
Provision for current expected credit losses | $ 213,700,000 | $ 213,700,000 | $ 117,700,000 | ||||
Debt instrument extended maturity date | Sep. 18, 2023 | ||||||
Maximum | Market and Terminal Capitalization Rates | |||||||
Schedule of Loans Receivable Allowance for Credit Losses [Line Items] | |||||||
Measurement Input | 0.083 | 0.083 | |||||
Maximum | Discount Rate | |||||||
Schedule of Loans Receivable Allowance for Credit Losses [Line Items] | |||||||
Measurement Input | 0.095 | 0.095 | |||||
Minimum | Market and Terminal Capitalization Rates | |||||||
Schedule of Loans Receivable Allowance for Credit Losses [Line Items] | |||||||
Measurement Input | 0.06 | 0.06 | |||||
Minimum | Discount Rate | |||||||
Schedule of Loans Receivable Allowance for Credit Losses [Line Items] | |||||||
Measurement Input | 0.06 | 0.06 | |||||
Senior Loans | |||||||
Schedule of Loans Receivable Allowance for Credit Losses [Line Items] | |||||||
Number of loans sold to a third party purchaser | Loan | 3 | ||||||
Loan receivable held for sale charge off | $ 7,500,000 | ||||||
Senior Loans | San Francisco, CA | |||||||
Schedule of Loans Receivable Allowance for Credit Losses [Line Items] | |||||||
Specific CECL reserves | $ 400,000 | $ 20,500,000 | |||||
Total loans receivable specific CECL reserve | 20,900,000 | ||||||
Loan receivable specific reserve carrying value | $ 112,200,000 | 112,200,000 | |||||
Unpaid principal balance | 112,400,000 | 112,400,000 | |||||
Senior Loans | Atlanta, GA | |||||||
Schedule of Loans Receivable Allowance for Credit Losses [Line Items] | |||||||
Carrying value | 71,100,000 | 71,100,000 | |||||
Specific CECL reserves | 4,400,000 | 20,000,000 | |||||
Total loans receivable specific CECL reserve | 24,400,000 | ||||||
Unpaid principal balance | 71,500,000 | 71,500,000 | |||||
Senior Loans | Arlington, VA | |||||||
Schedule of Loans Receivable Allowance for Credit Losses [Line Items] | |||||||
Loans receivable additional specific CECL reserve | 900,000 | ||||||
Specific CECL reserves | 31,200,000 | ||||||
Total loans receivable specific CECL reserve | 32,100,000 | ||||||
Loan receivable specific reserve carrying value | 152,200,000 | 152,200,000 | |||||
Senior Loans | Multifamily | Irvine, CA | |||||||
Schedule of Loans Receivable Allowance for Credit Losses [Line Items] | |||||||
Loans, carrying value | 216,800,000 | ||||||
Loan receivable sold unpaid principal balance | 218,400,000 | ||||||
Loan receivable held for sale charge off | $ 42,300,000 | ||||||
Loan Receivable Held for Sale Additional Charge Off | 600,000 | ||||||
Senior Loans | Maximum | |||||||
Schedule of Loans Receivable Allowance for Credit Losses [Line Items] | |||||||
Borrower with financial difficulty interest rate | 1.57% | ||||||
Total commitments and amortized cost basis | $ 87,800,000 | $ 87,800,000 | |||||
Percentage of loans receivable held-for-investment, net | 1.30% | 1.30% | |||||
Senior Loans | Minimum | |||||||
Schedule of Loans Receivable Allowance for Credit Losses [Line Items] | |||||||
Borrower with financial difficulty interest rate | 1% | ||||||
Total commitments and amortized cost basis | $ 78,600,000 | $ 78,600,000 | |||||
Percentage of loans receivable held-for-investment, net | 1.10% | 1.10% | |||||
Subordinate Secured Loan | NEW YORK | |||||||
Schedule of Loans Receivable Allowance for Credit Losses [Line Items] | |||||||
Carrying value | $ 900,000 | $ 900,000 | |||||
Specific CECL reserves | $ 900,000 | $ 900,000 |
Loan Portfolio - Schedule of _3
Loan Portfolio - Schedule of Loan Receivable Portfolio (Detail) - USD ($) $ in Thousands | 6 Months Ended | |||||
Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | [2] | |||
Loans Receivable Roll Forward [Line Items] | ||||||
Repayments of non-cash advances in lieu of interest | $ 1,865 | $ 7,738 | ||||
Accretion of fees | 8,960 | $ 10,586 | ||||
Loans receivable held-for-investment | 6,709,517 | [1] | $ 6,877,425 | |||
Unpaid Principal Balance [Member] | ||||||
Loans Receivable Roll Forward [Line Items] | ||||||
Balance | 7,044,524 | |||||
Advances on existing loans | 263,427 | |||||
Non-cash advances in lieu of interest | 23,205 | |||||
Repayments of loans receivable | (184,971) | |||||
Repayments of non-cash advances in lieu of interest | (1,865) | |||||
Transfer to loans held-for-sale | (216,046) | |||||
Balance | 6,928,274 | |||||
Deferred Fees [Member] | ||||||
Loans Receivable Roll Forward [Line Items] | ||||||
Balance | (24,141) | |||||
Origination fees, extension fees and exit fees | (1,423) | |||||
Accretion of fees | 8,960 | |||||
Transfer to loans held-for-sale | 1,603 | |||||
Balance | (15,001) | |||||
Specific CECL Allowance [Member] | ||||||
Loans Receivable Roll Forward [Line Items] | ||||||
Balance | (72,587) | |||||
Provision for specific CECL reserve | (48,517) | |||||
Transfer to loans held-for-sale | 42,266 | |||||
Principal Charge-offs | 561 | |||||
Balance | (78,277) | |||||
Carrying Value [Member] | ||||||
Loans Receivable Roll Forward [Line Items] | ||||||
Balance | [3] | 6,947,796 | ||||
Advances on existing loans | [3] | 263,427 | ||||
Non-cash advances in lieu of interest | [3] | 23,205 | ||||
Origination fees, extension fees and exit fees | [3] | (1,423) | ||||
Repayments of loans receivable | [3] | (184,971) | ||||
Repayments of non-cash advances in lieu of interest | [3] | (1,865) | ||||
Accretion of fees | [3] | 8,960 | ||||
Provision for specific CECL reserve | [3] | (48,517) | ||||
Transfer to loans held-for-sale | [3] | (172,177) | ||||
Principal Charge-offs | [3] | 561 | ||||
Balance | [3] | 6,834,996 | ||||
General CECL reserve | [3] | (125,479) | ||||
Loans receivable held-for-investment | [3] | $ 6,709,517 | ||||
[1] Net of specific CECL reserve s of $ 78.3 million. Net of specific CECL reserves of $ 72.6 million. Balance at December 31, 2023 does not include general CECL reserve. |
Loan Portfolio - Schedule of _4
Loan Portfolio - Schedule of Loans Receivable Held-for-sale (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Jun. 30, 2024 | |
Schedule Of Loans Receivables Past Due [Line Items] | ||
Loan Commitment | $ 378,906,000 | |
Unpaid Principal Balance | 271,533,000 | |
Carrying value before principal charge-off | 269,177,000 | |
Principal Charge-Off | (7,468,000) | |
Held-For-Sale Carrying Value | 261,709,000 | $ 0 |
For Sale Condo | FL | ||
Schedule Of Loans Receivables Past Due [Line Items] | ||
Loan Commitment | 160,000,000 | |
Unpaid Principal Balance | 158,180,000 | |
Carrying value before principal charge-off | 157,346,000 | |
Principal Charge-Off | 0 | |
Held-For-Sale Carrying Value | 157,346,000 | |
Multifamily | FL | ||
Schedule Of Loans Receivables Past Due [Line Items] | ||
Loan Commitment | 77,115,000 | |
Unpaid Principal Balance | 76,580,000 | |
Carrying value before principal charge-off | 76,275,000 | |
Principal Charge-Off | 0 | |
Held-For-Sale Carrying Value | 76,275,000 | |
Mixed-Use | FL | ||
Schedule Of Loans Receivables Past Due [Line Items] | ||
Loan Commitment | 141,791,000 | |
Unpaid Principal Balance | 36,773,000 | |
Carrying value before principal charge-off | 35,556,000 | |
Principal Charge-Off | (7,468,000) | |
Held-For-Sale Carrying Value | $ 28,088,000 |
Loan Portfolio - Schedule of _5
Loan Portfolio - Schedule of Loans Receivable Held-for-investment by Loan Type (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 | |||
Schedule of Loans Receivable [Line Items] | |||||
General CECL reserve | $ (125,479) | [1],[2] | $ (70,371) | [3],[4] | |
Loans receivable held-for-investment, net | 6,709,517 | [1] | 6,877,425 | [3] | |
Concentration of Risk | |||||
Schedule of Loans Receivable [Line Items] | |||||
General CECL reserve | (125,479) | [5] | (70,371) | [6] | |
Loans receivable held-for-investment, net | 6,709,517 | [5] | 6,877,425 | [6] | |
Concentration of Risk | Loan Type | |||||
Schedule of Loans Receivable [Line Items] | |||||
Total portfolio loans carrying value | $ 6,834,996 | [5] | $ 6,947,796 | [6] | |
Percentage of total portfolio loans | 100% | 100% | |||
Concentration of Risk | Property Type | |||||
Schedule of Loans Receivable [Line Items] | |||||
Total portfolio loans carrying value | $ 6,834,996 | [5] | $ 6,947,796 | [6] | |
Percentage of total portfolio loans | 100% | 100% | |||
Concentration of Risk | Property Type | Office | |||||
Schedule of Loans Receivable [Line Items] | |||||
Total portfolio loans carrying value | $ 974,943 | [5] | $ 961,744 | [6] | |
Percentage of total portfolio loans | 14% | 14% | |||
Concentration of Risk | Property Type | Mixed-Use | |||||
Schedule of Loans Receivable [Line Items] | |||||
Total portfolio loans carrying value | [7] | $ 604,985 | [5] | $ 596,919 | [6] |
Percentage of total portfolio loans | [7] | 9% | 9% | ||
Concentration of Risk | Property Type | Hospitality | |||||
Schedule of Loans Receivable [Line Items] | |||||
Total portfolio loans carrying value | $ 1,233,207 | [5] | $ 1,339,067 | [6] | |
Percentage of total portfolio loans | 18% | 19% | |||
Concentration of Risk | Property Type | Land | |||||
Schedule of Loans Receivable [Line Items] | |||||
Total portfolio loans carrying value | $ 518,645 | [5] | $ 518,252 | [6] | |
Percentage of total portfolio loans | 8% | 7% | |||
Concentration of Risk | Property Type | Multifamily | |||||
Schedule of Loans Receivable [Line Items] | |||||
Total portfolio loans carrying value | $ 2,721,317 | [5] | $ 2,829,436 | [6] | |
Percentage of total portfolio loans | 40% | 41% | |||
Concentration of Risk | Property Type | For Sale Condo | |||||
Schedule of Loans Receivable [Line Items] | |||||
Total portfolio loans carrying value | $ 214,838 | [5] | $ 219,796 | [6] | |
Percentage of total portfolio loans | 3% | 3% | |||
Concentration of Risk | Property Type | Other | |||||
Schedule of Loans Receivable [Line Items] | |||||
Total portfolio loans carrying value | $ 567,061 | [5] | $ 482,582 | [6] | |
Percentage of total portfolio loans | 8% | 7% | |||
Concentration of Risk | Geographic Location | |||||
Schedule of Loans Receivable [Line Items] | |||||
Total portfolio loans carrying value | $ 6,834,996 | [5] | $ 6,947,796 | [6] | |
Percentage of total portfolio loans | 100% | 100% | |||
Concentration of Risk | Geographic Location | Northeast | |||||
Schedule of Loans Receivable [Line Items] | |||||
Total portfolio loans carrying value | $ 1,763,775 | [5] | $ 1,861,239 | [6] | |
Percentage of total portfolio loans | 26% | 27% | |||
Concentration of Risk | Geographic Location | Mid Atlantic | |||||
Schedule of Loans Receivable [Line Items] | |||||
Total portfolio loans carrying value | $ 776,594 | [5] | $ 761,588 | [6] | |
Percentage of total portfolio loans | 11% | 11% | |||
Concentration of Risk | Geographic Location | Midwest | |||||
Schedule of Loans Receivable [Line Items] | |||||
Total portfolio loans carrying value | $ 482,617 | [5] | $ 477,019 | [6] | |
Percentage of total portfolio loans | 7% | 7% | |||
Concentration of Risk | Geographic Location | Southeast | |||||
Schedule of Loans Receivable [Line Items] | |||||
Total portfolio loans carrying value | $ 763,529 | [5] | $ 735,011 | [6] | |
Percentage of total portfolio loans | 11% | 11% | |||
Concentration of Risk | Geographic Location | Southwest | |||||
Schedule of Loans Receivable [Line Items] | |||||
Total portfolio loans carrying value | $ 600,746 | [5] | $ 592,324 | [6] | |
Percentage of total portfolio loans | 9% | 9% | |||
Concentration of Risk | Geographic Location | West | |||||
Schedule of Loans Receivable [Line Items] | |||||
Total portfolio loans carrying value | $ 2,445,836 | [5] | $ 2,518,716 | [6] | |
Percentage of total portfolio loans | 36% | 35% | |||
Concentration of Risk | Geographic Location | Other | |||||
Schedule of Loans Receivable [Line Items] | |||||
Total portfolio loans carrying value | $ 1,899 | [5] | $ 1,899 | [6] | |
Percentage of total portfolio loans | 0% | 0% | |||
Concentration of Risk | Senior Loans | Loan Type | |||||
Schedule of Loans Receivable [Line Items] | |||||
Total portfolio loans carrying value | [8] | $ 6,679,798 | [5] | $ 6,792,666 | [6] |
Percentage of total portfolio loans | [8] | 98% | 98% | ||
Concentration of Risk | Subordinate loans | Loan Type | |||||
Schedule of Loans Receivable [Line Items] | |||||
Total portfolio loans carrying value | $ 155,198 | [5] | $ 155,130 | [6] | |
Percentage of total portfolio loans | 2% | 2% | |||
[1] Net of specific CECL reserve s of $ 78.3 million. Net of specific CECL reserves of $ 78.3 million . Net of specific CECL reserves of $ 72.6 million. Net of specific CECL reserves of $ 72.6 million. Net of specific CECL r eserves of $ 78.3 million at June 30, 2024 . Net of specific CECL reserves of $ 72.6 million at December 31, 2023 . At June 30, 2024 , mixed-use comprises of 4 % office, 2 % retail, 2 % multifamily, 1 % hospitality, and immaterial amounts of for sale condo. At December 31, 2023, mixed-use comprises of 3 % office, 2 % retail, 2 % multifamily, 1 % hospitality, and immaterial amounts of for sale condo. Senior loans include senior mortgages and similar credit quality loans, including related contiguous subordinate loans and pari passu participations in senior mortgage loans. |
Loan Portfolio - Schedule of _6
Loan Portfolio - Schedule of Loans Receivable Held-for-investment by Loan Type (Details) (Parenthetical) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2024 | Dec. 31, 2023 | |
Schedule of Loans Receivable [Line Items] | ||
Specific CECL reserves | $ 78.3 | $ 72.6 |
Concentration of Risk | ||
Schedule of Loans Receivable [Line Items] | ||
Specific CECL reserves | $ 78.3 | $ 72.6 |
Concentration of Risk | Property Type | ||
Schedule of Loans Receivable [Line Items] | ||
Percentage of total portfolio loans | 100% | 100% |
Concentration of Risk | Property Type | Mixed-Use, Office | ||
Schedule of Loans Receivable [Line Items] | ||
Percentage of total portfolio loans | 4% | 3% |
Concentration of Risk | Property Type | Mixed-Use, Retail | ||
Schedule of Loans Receivable [Line Items] | ||
Percentage of total portfolio loans | 2% | 2% |
Concentration of Risk | Property Type | Mixed-Use, Multifamily | ||
Schedule of Loans Receivable [Line Items] | ||
Percentage of total portfolio loans | 2% | 2% |
Concentration of Risk | Property Type | Mixed-Use, Hospitality | ||
Schedule of Loans Receivable [Line Items] | ||
Percentage of total portfolio loans | 1% | 1% |
Loan Portfolio - Summarizes of
Loan Portfolio - Summarizes of Interest and Accretion Income from Loan Portfolio (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | ||
Receivables [Abstract] | |||||
Coupon interest | $ 148,319 | $ 171,018 | $ 301,326 | $ 327,634 | |
Interest on cash, cash equivalents, and other income | 2,485 | 4,378 | 5,690 | 6,681 | |
Accretion of fees | 4,327 | 5,339 | 8,960 | 10,586 | |
Total interest and related income | [1] | $ 155,131 | $ 180,735 | $ 315,976 | $ 344,901 |
[1] For the three months ended June 30, 2024 and 2023, we did not recognize any default interest, late fees, pre-payment penalties, and/or accelerated fees. For the six months ended June 30, 2024 and 2023, we recognized $ 1.3 million and $ 0.3 million , respectively, in default interest, late fees, pre-payment penalties, and/or accelerated fees . |
Loan Portfolio - Summarizes o_2
Loan Portfolio - Summarizes of Interest and Accretion Income from Loan Portfolio (Details) (Parenthetical) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Receivables [Abstract] | ||
Pre-payment penalties and accelerated fees | $ 1.3 | $ 0.3 |
Loan Portfolio - Schedule of Pr
Loan Portfolio - Schedule of Principal Balance Carrying Value of The Loans Receivable Held-for-investment (Details) $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2024 USD ($) Loan | Dec. 31, 2023 USD ($) Loan | |||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Number of Loans | Loan | 62 | 65 | ||
Principal Balance | $ 6,928,274 | $ 7,044,524 | ||
Carrying Value | 6,709,517 | [1] | 6,877,425 | [2] |
Carrying value gross | 6,834,996 | [1] | 6,947,796 | [2] |
General CECL reserve | $ (125,479) | [1],[3] | $ (70,371) | [2],[4] |
% of Total of Carrying Value | 100% | 100% | ||
Risk Rating One | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Number of Loans | Loan | 0 | 0 | ||
% of Total of Carrying Value | 0% | 0% | ||
Risk Rating Two | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Number of Loans | Loan | 0 | 0 | ||
% of Total of Carrying Value | 0% | 0% | ||
Risk Rating Three | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Number of Loans | Loan | 39 | 45 | ||
Principal Balance | $ 4,483,181 | $ 5,169,731 | ||
Carrying Value | $ 4,472,171 | [1] | $ 5,148,188 | [2] |
% of Total of Carrying Value | 65% | 74% | ||
Risk Rating Four | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Number of Loans | Loan | 18 | 15 | ||
Principal Balance | $ 2,106,138 | $ 1,536,748 | ||
Carrying Value | $ 2,102,826 | [1] | $ 1,534,829 | [2] |
% of Total of Carrying Value | 31% | 22% | ||
Risk Rating Five | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Number of Loans | Loan | 5 | 5 | ||
Principal Balance | $ 338,955 | $ 338,045 | ||
Carrying Value | $ 259,999 | [1] | $ 264,779 | [2] |
% of Total of Carrying Value | 4% | 4% | ||
[1] Net of specific CECL reserves of $ 78.3 million . Net of specific CECL reserves of $ 72.6 million. Net of specific CECL reserve s of $ 78.3 million. Net of specific CECL reserves of $ 72.6 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 | 6 Months Ended | 12 Months Ended |
Jun. 30, 2024 | Dec. 31, 2023 | |
Receivables [Abstract] | ||
Specific CECL reserves | $ 78.3 | $ 72.6 |
Loan Portfolio - Loan Risk Rati
Loan Portfolio - Loan Risk Ratings (Details) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2024 | Dec. 31, 2023 | |
Receivables [Abstract] | ||
Weighted-average risk rating on loan exposure | 3.40% | 3.30% |
Loan Portfolio - Summary of Car
Loan Portfolio - Summary of Carrying Value and Significant Characteristics of Loans Receivable on Non-accrual Status (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2024 | Dec. 31, 2023 | ||||
Schedule of Loans Receivable Allowance for Credit Losses [Line Items] | |||||
Unpaid Principal Balance | $ 777,882 | [1] | $ 717,738 | [2] | |
Carrying Value Before Specific CECL Reserve | 776,393 | [1] | 715,070 | [2] | |
Specific CECL Reserve | (78,277) | [1] | (72,587) | [2] | |
Net Carrying Value | 698,116 | [1] | 642,483 | [2] | |
Multifamily | Risk Rating Four | CA | |||||
Schedule of Loans Receivable Allowance for Credit Losses [Line Items] | |||||
Unpaid Principal Balance | [3] | 214,479 | |||
Carrying Value Before Specific CECL Reserve | [3] | 212,877 | |||
Net Carrying Value | [3] | $ 212,877 | |||
Interest Recognition Method | [3] | Cost recovery | |||
Interest Recognition as of Date | [3] | Oct. 01, 2023 | |||
Multifamily | Risk Rating Four | NV | |||||
Schedule of Loans Receivable Allowance for Credit Losses [Line Items] | |||||
Unpaid Principal Balance | 96,529 | ||||
Carrying Value Before Specific CECL Reserve | 96,082 | ||||
Net Carrying Value | $ 96,082 | ||||
Interest Recognition Method | Cash Basis | ||||
Interest Recognition as of Date | Jan. 01, 2024 | ||||
Multifamily | Risk Rating Four | AZ | |||||
Schedule of Loans Receivable Allowance for Credit Losses [Line Items] | |||||
Unpaid Principal Balance | $ 50,164 | ||||
Carrying Value Before Specific CECL Reserve | 49,957 | ||||
Net Carrying Value | $ 49,957 | ||||
Interest Recognition Method | Cash Basis | ||||
Interest Recognition as of Date | Jan. 01, 2024 | ||||
Multifamily | Risk Rating Four | TX | |||||
Schedule of Loans Receivable Allowance for Credit Losses [Line Items] | |||||
Unpaid Principal Balance | $ 39,279 | ||||
Carrying Value Before Specific CECL Reserve | 39,085 | ||||
Net Carrying Value | $ 39,085 | ||||
Interest Recognition Method | Cash Basis | ||||
Interest Recognition as of Date | Jan. 01, 2024 | ||||
Office | Risk Rating Four | CA | |||||
Schedule of Loans Receivable Allowance for Credit Losses [Line Items] | |||||
Unpaid Principal Balance | $ 98,214 | $ 98,214 | |||
Carrying Value Before Specific CECL Reserve | 97,827 | 97,827 | |||
Net Carrying Value | $ 97,827 | $ 97,827 | |||
Interest Recognition Method | Cost Recovery | Cost recovery | |||
Interest Recognition as of Date | Sep. 01, 2023 | Sep. 01, 2023 | |||
Office | Risk Rating Five | CA | |||||
Schedule of Loans Receivable Allowance for Credit Losses [Line Items] | |||||
Unpaid Principal Balance | $ 112,442 | $ 112,442 | [4] | ||
Carrying Value Before Specific CECL Reserve | 112,163 | 112,163 | [4] | ||
Specific CECL Reserve | (20,863) | (20,523) | [4] | ||
Net Carrying Value | $ 91,300 | $ 91,640 | [4] | ||
Interest Recognition Method | Cash Basis | Cash basis | [4] | ||
Interest Recognition as of Date | Apr. 01, 2023 | Apr. 01, 2023 | [4] | ||
Office | Risk Rating Five | GA | |||||
Schedule of Loans Receivable Allowance for Credit Losses [Line Items] | |||||
Unpaid Principal Balance | $ 71,492 | $ 71,492 | |||
Carrying Value Before Specific CECL Reserve | 71,094 | 71,094 | |||
Specific CECL Reserve | (24,394) | (19,954) | |||
Net Carrying Value | $ 46,700 | $ 51,140 | |||
Interest Recognition Method | Cost Recovery | Cost recovery | |||
Interest Recognition as of Date | Sep. 01, 2023 | Sep. 01, 2023 | |||
Land | Risk Rating Four | NY | |||||
Schedule of Loans Receivable Allowance for Credit Losses [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 | |||
Land | Risk Rating Five | VA | |||||
Schedule of Loans Receivable Allowance for Credit Losses [Line Items] | |||||
Unpaid Principal Balance | $ 152,236 | $ 151,326 | |||
Carrying Value Before Specific CECL Reserve | 152,236 | 151,326 | |||
Specific CECL Reserve | (32,136) | (31,226) | |||
Net Carrying Value | $ 120,100 | $ 120,100 | |||
Interest Recognition Method | Cost Recovery | Cost recovery | |||
Interest Recognition as of Date | Jan. 01, 2023 | Jan. 01, 2023 | |||
Land | Risk Rating Four | NY | |||||
Schedule of Loans Receivable Allowance for Credit Losses [Line Items] | |||||
Unpaid Principal Balance | $ 87,741 | ||||
Carrying Value Before Specific CECL Reserve | 88,166 | ||||
Net Carrying Value | $ 88,166 | ||||
Interest Recognition Method | Cash Basis | ||||
Interest Recognition as of Date | Apr. 01, 2024 | ||||
Other | Risk Rating Five | NY | |||||
Schedule of Loans Receivable Allowance for Credit Losses [Line Items] | |||||
Unpaid Principal Balance | $ 886 | $ 886 | |||
Carrying Value Before Specific CECL Reserve | 884 | 884 | |||
Specific CECL Reserve | $ (884) | $ (884) | |||
Interest Recognition Method | Cost Recovery | Cost recovery | |||
Interest Recognition as of Date | Jun. 30, 2023 | Jun. 30, 2023 | |||
Other | Risk Rating Five | Other | |||||
Schedule of Loans Receivable Allowance for Credit Losses [Line Items] | |||||
Unpaid Principal Balance | $ 1,899 | $ 1,899 | |||
Carrying Value Before Specific CECL Reserve | 1,899 | 1,899 | |||
Net Carrying Value | $ 1,899 | $ 1,899 | |||
Interest Recognition Method | Cost Recovery | Cost recovery | |||
Interest Recognition as of Date | Jul. 01, 2020 | Jul. 01, 2020 | |||
[1] Loans classified as non-accrual represented 10.2 % of the total loans receivable held-for-investment at June 30, 2024 , based on carrying value net of any specific CECL reserves. Excludes five loans with an aggregate carrying value of $ 600.7 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 June 30, 2024 , we have two loans with an aggregate carrying value of $ 479.4 million that are delinquent on interest payments but remains on accrual status as the interest is deemed collectible based on the underlying collateral value. Loans classified as non-accrual represented 9.2 % of the 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. This loan was sold in April 2024. During the year ended December 31, 2023, interest income of $ 0.3 million was recognized on a cash basis for this loan while on non-accrual status . |
Loan Portfolio - Summary of C_2
Loan Portfolio - Summary of Carrying Value and Significant Characteristics of Loans Receivable on Non-accrual Status (Details) (Parenthetical) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 USD ($) Loan | Jun. 30, 2024 USD ($) Loan | |
Receivables [Abstract] | ||
Interest recognized | $ 0.3 | |
Nonaccrual carrying value remain on accrual status maturity default | $ 490.2 | $ 600.7 |
Number of additional loans | Loan | 4 | 5 |
Accrual delinquent loan carrying value | $ 78.4 | $ 479.4 |
Loan Receivable Percent Non Accrual | 9.20% | 10.20% |
Loan Portfolio - Schedule of Ac
Loan Portfolio - Schedule of Activity In Allowance For Loan Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||||||||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | ||||||||
Schedule of Loans Receivable Allowance for Credit Losses [Line Items] | |||||||||||||
(Reversal) Provision | $ 103,900 | $ 38,200 | |||||||||||
Current Expected Credit Losses | |||||||||||||
Schedule of Loans Receivable Allowance for Credit Losses [Line Items] | |||||||||||||
Total current expected credit loss reserve, Balance | $ 180,378 | $ 152,684 | $ 143,123 | $ 146,362 | 152,684 | 146,362 | |||||||
(Reversal) Provision | 33,928 | 69,960 | 41,475 | (3,239) | |||||||||
Principal charge-off | (561) | (42,266) | (66,935) | ||||||||||
Total current expected credit loss reserve, Balance | $ 213,745 | 180,378 | 117,663 | 143,123 | $ 213,745 | 117,663 | |||||||
Reserve | [1] | 3.10% | 3.10% | ||||||||||
Current Expected Credit Losses | Specific C E C L Allowance | |||||||||||||
Schedule of Loans Receivable Allowance for Credit Losses [Line Items] | |||||||||||||
Total current expected credit loss reserve, Balance | $ 77,606 | 72,587 | 60,300 | 60,300 | $ 72,587 | 60,300 | |||||||
(Reversal) Provision | 1,232 | 47,285 | 44,588 | ||||||||||
Principal charge-off | (561) | (42,266) | (66,935) | ||||||||||
Total current expected credit loss reserve, Balance | $ 78,277 | 77,606 | 37,953 | 60,300 | $ 78,277 | 37,953 | |||||||
Reserve | [1] | 1.10% | 1.10% | ||||||||||
Current Expected Credit Losses | Loans Receivable Held For Investment | |||||||||||||
Schedule of Loans Receivable Allowance for Credit Losses [Line Items] | |||||||||||||
Total current expected credit loss reserve, Balance | $ 93,729 | 70,371 | 67,326 | 68,347 | $ 70,371 | 68,347 | |||||||
(Reversal) Provision | 31,750 | 23,358 | (1,628) | (1,021) | |||||||||
Total current expected credit loss reserve, Balance | 125,479 | 93,729 | 65,698 | 67,326 | 125,479 | 65,698 | |||||||
Current Expected Credit Losses | Unfunded Loan Commitments | |||||||||||||
Schedule of Loans Receivable Allowance for Credit Losses [Line Items] | |||||||||||||
Total current expected credit loss reserve, Balance | [2] | 9,043 | [1] | 9,726 | [1] | 15,497 | 17,715 | 9,726 | [1] | 17,715 | |||
(Reversal) Provision | 946 | [1] | (683) | [1],[2] | (1,485) | [1] | (2,218) | [2] | |||||
Total current expected credit loss reserve, Balance | 9,989 | [1] | 9,043 | [1],[2] | 14,012 | [1] | 15,497 | [2] | 9,989 | [1] | 14,012 | [1] | |
Current Expected Credit Losses | General CECL Reserve [Member] | |||||||||||||
Schedule of Loans Receivable Allowance for Credit Losses [Line Items] | |||||||||||||
Total current expected credit loss reserve, Balance | 102,772 | 80,097 | 82,823 | 86,062 | 80,097 | 86,062 | |||||||
(Reversal) Provision | 32,696 | 22,675 | (3,113) | (3,239) | |||||||||
Total current expected credit loss reserve, Balance | $ 135,468 | $ 102,772 | $ 79,710 | $ 82,823 | $ 135,468 | $ 79,710 | |||||||
Reserve | [1] | 2% | 2% | ||||||||||
[1] Represents CECL reserve as a percent of total unpaid principal balance of loans receivable held-for-investment as of June 30, 2024 . The CECL reserve for unfunded commitments is included in other liabilities on the consolidated balance sheets. |
Loan Portfolio - Summary of Loa
Loan Portfolio - Summary of Loans Receivable Held-for-investment With Specific CECL Reserves (Details) - Specific CECL Reserves $ in Thousands | 6 Months Ended |
Jun. 30, 2024 USD ($) | |
Schedule of Loans Receivable Allowance for Credit Losses [Line Items] | |
Unpaid Principal Balance | $ 337,056 |
Carrrying Value Before Specific CECL Reserve | 336,377 |
Specific CECL Reserve | 78,277 |
Net Carrying Value | 258,100 |
Land | VA | |
Schedule of Loans Receivable Allowance for Credit Losses [Line Items] | |
Unpaid Principal Balance | 152,236 |
Carrrying Value Before Specific CECL Reserve | 152,236 |
Specific CECL Reserve | 32,136 |
Net Carrying Value | 120,100 |
Office | CA | |
Schedule of Loans Receivable Allowance for Credit Losses [Line Items] | |
Unpaid Principal Balance | 112,442 |
Carrrying Value Before Specific CECL Reserve | 112,163 |
Specific CECL Reserve | 20,863 |
Net Carrying Value | 91,300 |
Office | GA | |
Schedule of Loans Receivable Allowance for Credit Losses [Line Items] | |
Unpaid Principal Balance | 71,492 |
Carrrying Value Before Specific CECL Reserve | 71,094 |
Specific CECL Reserve | 24,394 |
Net Carrying Value | 46,700 |
Other | NY | |
Schedule of Loans Receivable Allowance for Credit Losses [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 | Jun. 30, 2024 USD ($) Loan | |
Schedule of Loans Receivable Allowance for Credit Losses [Line Items] | ||
Number of Loans | Loan | 62 | |
Amortized Cost Basis | $ 6,834,996 | [1] |
Year 1 | 101,093 | |
Year 2 | 2,561,493 | |
Year 3 | 1,721,607 | |
Year 4 | 179,050 | |
Year 5 | 1,545,432 | |
Year 6 | 726,321 | |
Charge-offs, Year 3 | $ 42,827 | [2] |
Risk Rating One | ||
Schedule of Loans Receivable Allowance for Credit Losses [Line Items] | ||
Number of Loans | Loan | 0 | |
Risk Rating Two | ||
Schedule of Loans Receivable Allowance for Credit Losses [Line Items] | ||
Number of Loans | Loan | 0 | |
Risk Rating Three | ||
Schedule of Loans Receivable Allowance for Credit Losses [Line Items] | ||
Number of Loans | Loan | 39 | |
Amortized Cost Basis | $ 4,472,171 | [1] |
Year 1 | 101,093 | |
Year 2 | 2,018,589 | |
Year 3 | 1,104,317 | |
Year 5 | 808,669 | |
Year 6 | $ 439,503 | |
Risk Rating Four | ||
Schedule of Loans Receivable Allowance for Credit Losses [Line Items] | ||
Number of Loans | Loan | 18 | |
Amortized Cost Basis | $ 2,102,826 | [1] |
Year 2 | 542,904 | |
Year 3 | 570,590 | |
Year 4 | 87,750 | |
Year 5 | 734,864 | |
Year 6 | $ 166,718 | |
Risk Rating Five | ||
Schedule of Loans Receivable Allowance for Credit Losses [Line Items] | ||
Number of Loans | Loan | 5 | |
Amortized Cost Basis | $ 259,999 | [1] |
Year 3 | 46,700 | |
Year 4 | 91,300 | |
Year 5 | 1,899 | |
Year 6 | $ 120,100 | |
[1] Net of specific CECL reserves o f $ 78.3 million. Principal charge-off recognized in connection with the sale of a senior loan in April 2024. |
Loan Portfolio - Schedule of _8
Loan Portfolio - Schedule of Carrying Value of Loan Portfolio Based on Internal Risk Ratings (Parenthetical) (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2024 | Dec. 31, 2023 | |
Schedule of Loans Receivable Allowance for Credit Losses [Line Items] | ||
Specific CECL reserves | $ 78.3 | $ 72.6 |
Loan Portfolio - Schedule of Ov
Loan Portfolio - Schedule of Overall Statistics for Loans Receivable and Interests in Loans Receivable Portfolio (Details) - Loans Receivable Portfolio | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2024 | Dec. 31, 2023 | ||
Schedule Of Loans Receivables Past Due [Line Items] | |||
Weighted average yield to maturity | [1] | 9% | 9.10% |
Weighted average term to initial maturity | 9 months 18 days | 1 year 2 months 12 days | |
Weighted average term to fully extended maturity | [2] | 2 years 2 months 12 days | 2 years 7 months 6 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 June 30, 2024 and 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 And Interests In Loans Receivable Portfolio Table (Parenthetical) (Details) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2024 | Dec. 31, 2023 | |
Loans Receivable Portfolio | ||
Schedule Of Loans Receivables Past Due [Line Items] | ||
Weighted average annualized yield | 0% | 0% |
Equity Method Investment - Addi
Equity Method Investment - Additional Information (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Schedule of Equity Method Investments [Line Items] | ||
Equity method investment | $ 42,397 | $ 42,474 |
CMTG/TT | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity interest ownership percentage | 51% | 51% |
Remaining loan held unpaid principal balance | $ 78,500 | |
Equity method investment | $ 42,400 |
Real Estate Owned - Additional
Real Estate Owned - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Mortgage Loans On Real Estate [Line Items] | |||||
Loan held by company | $ 183,992 | $ 183,992 | $ 340,069 | ||
Debt related to real estate owned, net | 278,600 | 278,600 | 289,913 | ||
Unpaid principal balance | 271,533 | ||||
Specific CECL reserve | 78,300 | $ 72,600 | |||
Depreciation expense | 2,400 | $ 2,100 | 4,800 | $ 4,200 | |
Amortization of in-place and other lease values | 200 | 400 | |||
Amortization of above market lease | 400 | 900 | |||
Amortization of below market lease | $ 100 | $ 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 | ||||
Impairment of real estate | $ 0 | ||||
Mixed-Use property | |||||
Mortgage Loans On Real Estate [Line Items] | |||||
Purchase price allocated to intangible assets | 20,100 | 20,100 | |||
Mixed-Use property | In-Place Leases | |||||
Mortgage Loans On Real Estate [Line Items] | |||||
Purchase price allocated to intangible assets | 4,800 | 4,800 | |||
Mixed-Use property | Above Market Leases | |||||
Mortgage Loans On Real Estate [Line Items] | |||||
Purchase price allocated to intangible assets | 17,900 | 17,900 | |||
Mixed-Use property | Below Market Leases | |||||
Mortgage Loans On Real Estate [Line Items] | |||||
Purchase price allocated to intangible assets | 4,200 | 4,200 | |||
Mixed-Use property | Other Leases | |||||
Mortgage Loans On Real Estate [Line Items] | |||||
Purchase price allocated to intangible assets | $ 1,600 | $ 1,600 |
Real Estate Owned - Summary of
Real Estate Owned - Summary of Additional Detail Related to the Company's Hotel Portfolio and Mixed-use Real Estate Owned, Net (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Property Plant And Equipment [Line Items] | ||
Real estate owned | $ 547,580 | $ 546,999 |
Less: accumulated depreciation | (28,861) | (24,040) |
Real estate acquired through foreclosure, fair value | 518,719 | 522,959 |
Land | ||
Property Plant And Equipment [Line Items] | ||
Real estate owned | 235,998 | 235,998 |
Building | ||
Property Plant And Equipment [Line Items] | ||
Real estate owned | 295,651 | 295,651 |
Capital Improvements | ||
Property Plant And Equipment [Line Items] | ||
Real estate owned | 5,017 | 4,436 |
Tenant Improvements | ||
Property Plant And Equipment [Line Items] | ||
Real estate owned | 4,414 | 4,414 |
Furniture, Fixtures and Equipment | ||
Property Plant And Equipment [Line Items] | ||
Real estate owned | $ 6,500 | $ 6,500 |
Real Estate Owned - Schedule of
Real Estate Owned - Schedule of Revenues and Operating Expenses of Real Estate Owned Properties (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Total revenue from real estate owned | $ 22,581 | $ 19,866 | $ 36,492 | $ 30,829 |
Total operating expenses from real estate owned | 13,859 | 11,269 | 26,739 | 21,268 |
Hotel portfolio | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Total revenue from real estate owned | 20,728 | 19,866 | 32,745 | 30,829 |
Total operating expenses from real estate owned | 12,647 | $ 11,269 | 24,269 | $ 21,268 |
Mixed-Use property | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Total operating expenses from real estate owned | 1,212 | 2,470 | ||
Mixed-Use property fixed rents | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Total revenue from real estate owned | 2,094 | 4,172 | ||
Mixed-Use property straight-line rent adjustment | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Total revenue from real estate owned | 32 | 63 | ||
Mixed-Use property variable rents | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Total revenue from real estate owned | 81 | 220 | ||
Mixed-Use property amortization of above and below market leases, net | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Total revenue from real estate owned | $ (354) | $ (708) |
Real Estate Owned - Schedule _2
Real Estate Owned - Schedule of Future Minimum Fixed Rents under Non-Cancellable Leases (Details) $ in Thousands | Jun. 30, 2024 USD ($) | |
Real Estate Owned, Disclosure of Detailed Components [Abstract] | ||
2024 | $ 4,156 | [1] |
2025 | 8,383 | |
2026 | 8,415 | |
2027 | 8,432 | |
2028 | 8,323 | |
Thereafter | 27,462 | |
Total | $ 65,171 | |
[1] Contractual lease payments due for the remaining six months of 2024. |
Real Estate Owned - Schedule _3
Real Estate Owned - Schedule of Lease Intangibles (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Real Estate Owned, Disclosure of Detailed Components [Abstract] | ||
In-place, above market, and other lease values | $ 24,289 | $ 24,289 |
Less: accumulated amortization | (2,592) | (1,296) |
In-place, above market, and other lease values, net | 21,697 | 22,993 |
Below market lease values | (4,209) | (4,209) |
Less: accumulated amortization | 377 | 188 |
Below market lease values, net | $ (3,832) | $ (4,021) |
Real Estate Owned - Estimated A
Real Estate Owned - Estimated Amortization of Intangibles for Next Five Years (Details) $ in Thousands | Jun. 30, 2024 USD ($) | |
Real Estate Owned, Disclosure of Detailed Components [Abstract] | ||
2024 | $ 401 | [1],[2] |
2025 | 802 | [1] |
2026 | 802 | [1] |
2027 | 802 | [1] |
2028 | 769 | [1] |
Thereafter | 2,025 | [1] |
In-place and other lease values, net | 5,601 | [1] |
2024 | (895) | [2],[3] |
2025 | (1,791) | [3] |
2026 | (1,791) | [3] |
2027 | (1,791) | [3] |
2028 | (1,771) | [3] |
Thereafter | (8,057) | [3] |
Above market lease values, net | (16,096) | [3] |
2024 | 188 | [2],[3] |
2025 | 377 | [3] |
2026 | 377 | [3] |
2027 | 377 | [3] |
2028 | 377 | [3] |
Thereafter | 2,136 | [3] |
Below market lease values, net | $ 3,832 | [3] |
[1] Amortization of in-place and other lease values is recognized in depreciation and amortization expense on our consolidated statements of operations. Represents amortization for the remaining six months of 2024. 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 | Jun. 30, 2024 | Dec. 31, 2023 | |
Short-Term Debt [Line Items] | |||
Capacity | $ 7,087,945 | $ 7,265,860 | |
Borrowing Outstanding | $ 5,340,186 | $ 5,694,025 | |
Weighted Average Spread | [1] | 3.01% | 3.03% |
Repurchase Agreements and Term Participation Facility [Member] | |||
Short-Term Debt [Line Items] | |||
Capacity | [2] | $ 5,626,006 | $ 5,709,907 |
Borrowing Outstanding | [2] | $ 3,990,887 | $ 4,271,112 |
Weighted Average Spread | [1],[2] | 2.69% | 2.76% |
Loan Participants Sold [Member] | |||
Short-Term Debt [Line Items] | |||
Capacity | $ 100,634 | $ 120,634 | |
Borrowing Outstanding | $ 100,634 | $ 120,634 | |
Weighted Average Spread | [1] | 4.25% | 4.15% |
Notes Payable [Member] | |||
Short-Term Debt [Line Items] | |||
Capacity | $ 359,667 | $ 419,867 | |
Borrowing Outstanding | $ 247,027 | $ 286,827 | |
Weighted Average Spread | [1] | 3.44% | 3.10% |
Secured Term Loan [Member] | |||
Short-Term Debt [Line Items] | |||
Capacity | $ 721,638 | $ 725,452 | |
Borrowing Outstanding | $ 721,638 | $ 725,452 | |
Weighted Average Spread | [1] | 4.50% | 4.50% |
Debt To Real Estate Owned [Member] | |||
Short-Term Debt [Line Items] | |||
Capacity | $ 280,000 | $ 290,000 | |
Borrowing Outstanding | $ 280,000 | $ 290,000 | |
Weighted Average Spread | [1] | 2.90% | 2.83% |
[1] Weighted average spread over the applicable benchmark rate is based on unpaid principal balance. SOFR as of June 30, 2024 and December 31, 2023 was 5.34 % and 5.35 % , respectively. The repurchase agreements and term participation facility are partially recourse to us. As of June 30, 2024 and December 31, 2023 , the weighted average recourse on both our repurchase agreements and term participation facility was 29 % and 30 %, respectively. |
Debt Obligations - Summary of_2
Debt Obligations - Summary of Financings (Parenthetical) (Details) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2024 | Dec. 31, 2023 | Feb. 08, 2021 | |
Short-Term Debt [Line Items] | |||
Investment, Type [Extensible Enumeration] | Real Estate Investment [Member] | ||
Recourse | |||
Short-Term Debt [Line Items] | |||
Investment, Type [Extensible Enumeration] | Repurchase Agreements | ||
Recourse | Repurchase Agreements | |||
Short-Term Debt [Line Items] | |||
Debt weighted average recourse rate | 29% | ||
Recourse | Term participation facility | |||
Short-Term Debt [Line Items] | |||
Debt weighted average recourse rate | 30% | ||
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | |||
Short-Term Debt [Line Items] | |||
Debt instrument basis spread on variable rate | 5.34% | 5.35% |
Debt Obligations - Summary of R
Debt Obligations - Summary of Repurchase Agreements (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2024 | Dec. 31, 2023 | ||||
Repurchase Agreement Counterparty [Line Items] | |||||
Borrowing Outstanding and Carrying Value | $ 3,620,694 | $ 3,805,678 | |||
Carrying Value of Collateral | 183,992 | 340,069 | |||
Repurchase Agreements and Term Participation Facility [Member] | |||||
Repurchase Agreement Counterparty [Line Items] | |||||
Maximum Capacity | 5,161,713 | 5,055,465 | |||
Borrowing Outstanding and Carrying Value | 3,620,694 | 3,805,678 | |||
Undrawn Capacity | 1,541,019 | 1,249,787 | |||
Carrying Value of Collateral | $ 5,166,561 | [1] | $ 5,369,552 | [2] | |
Repurchase Agreements and Term Participation Facility [Member] | JP Morgan Chase Bank NA [Member] | |||||
Repurchase Agreement Counterparty [Line Items] | |||||
Initial Maturity | Jul. 28, 2026 | Jul. 28, 2026 | |||
Fully Extended Maturity | Jul. 28, 2028 | [3] | Jul. 28, 2028 | [4] | |
Maximum Capacity | $ 2,411,713 | $ 1,905,465 | |||
Borrowing Outstanding and Carrying Value | 2,268,143 | 1,672,878 | |||
Undrawn Capacity | 143,570 | 232,587 | |||
Carrying Value of Collateral | $ 3,284,536 | [1] | $ 2,257,442 | [2] | |
Repurchase Agreements and Term Participation Facility [Member] | Morgan Stanley Bank NA [Member] | |||||
Repurchase Agreement Counterparty [Line Items] | |||||
Initial Maturity | Jan. 26, 2025 | Jan. 26, 2024 | [5] | ||
Fully Extended Maturity | Jan. 26, 2025 | [3] | Jan. 26, 2025 | [4] | |
Maximum Capacity | $ 1,000,000 | $ 1,000,000 | [5] | ||
Borrowing Outstanding and Carrying Value | 549,169 | 735,393 | [5] | ||
Undrawn Capacity | 450,831 | 264,607 | [5] | ||
Carrying Value of Collateral | $ 798,327 | [1] | $ 1,023,295 | [2] | |
Repurchase Agreements and Term Participation Facility [Member] | Goldman Sachs Bank USA [Member] | |||||
Repurchase Agreement Counterparty [Line Items] | |||||
Initial Maturity | May 31, 2025 | May 31, 2025 | [5] | ||
Fully Extended Maturity | May 31, 2027 | [3] | May 31, 2027 | [4] | |
Maximum Capacity | $ 500,000 | $ 500,000 | |||
Borrowing Outstanding and Carrying Value | 143,215 | 175,755 | |||
Undrawn Capacity | 356,785 | 324,245 | |||
Carrying Value of Collateral | $ 187,802 | [1] | $ 286,623 | [2] | |
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 | [3] | Dec. 20, 2025 | [4] | |
Maximum Capacity | $ 500,000 | $ 500,000 | |||
Borrowing Outstanding and Carrying Value | 0 | 135,129 | |||
Undrawn Capacity | 500,000 | 364,871 | |||
Carrying Value of Collateral | $ 0 | [1] | $ 250,823 | [2] | |
Repurchase Agreements and Term Participation Facility [Member] | Deutsche Bank AG New York Branch [Member] | |||||
Repurchase Agreement Counterparty [Line Items] | |||||
Initial Maturity | Jun. 26, 2024 | ||||
Fully Extended Maturity | [4] | Jun. 26, 2026 | |||
Maximum Capacity | $ 400,000 | ||||
Borrowing Outstanding and Carrying Value | 359,646 | ||||
Undrawn Capacity | 40,354 | ||||
Carrying Value of Collateral | [2] | $ 611,741 | |||
Repurchase Agreements and Term Participation Facility [Member] | Wells Fargo Bank NA [Member] | |||||
Repurchase Agreement Counterparty [Line Items] | |||||
Initial Maturity | Sep. 29, 2024 | Sep. 29, 2024 | |||
Fully Extended Maturity | Sep. 29, 2026 | [3] | Sep. 29, 2026 | [4] | |
Maximum Capacity | $ 750,000 | $ 750,000 | |||
Borrowing Outstanding and Carrying Value | 660,167 | 726,877 | |||
Undrawn Capacity | 89,833 | 23,123 | |||
Carrying Value of Collateral | $ 895,896 | [1] | $ 939,628 | [2] | |
[1] Net of specific CECL reserves, if any. Net of specific CECL reserves, if any. Facility maturity dates may be extended , subject to meeting prescribed conditions . Facility maturity dates may be extended, subject to meeting prescribed conditions. Assumes as of right extension is exercised, subject to meeting prescribed conditions. |
Debt Obligations - Additional I
Debt Obligations - Additional Information (Details) - USD ($) | 6 Months Ended | 12 Months Ended | |||||
Jun. 29, 2022 | Dec. 02, 2021 | Feb. 08, 2021 | Jun. 30, 2024 | Dec. 31, 2023 | Dec. 01, 2020 | Aug. 09, 2019 | |
Debt Instrument [Line Items] | |||||||
Strike rate | 5% | ||||||
Derivative Fee Paid | $ 500,000 | ||||||
Derivative liability notional amount | 280,000,000 | ||||||
Secured term loan | $ 325,000,000 | $ 450,000,000 | |||||
One-month SOFR | 4.50% | ||||||
Principal payments | 10,000,000 | ||||||
Senior mortgage amount | $ 300,000,000 | ||||||
Financing agreements, covenants description | Our financing agreements generally contain certain financial covenants. For example, our ratio of earnings before interest, taxes, depreciation, and amortization to interest charges (“Interest Coverage Ratio”), as defined in our repurchase agreements, term participation facility, and short-term funding facility, shall not be less than 1.3 to 1.0, whereas our ratio of earnings before interest, taxes, depreciation, and amortization to interest charges as defined in our secured term loan shall not be less than 1.5 to 1.0. Further, (i) our tangible net worth, as defined in the agreements, shall not be less than $1.91 billion as of each measurement date; (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 June 30, 2024, 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. Further, we have modified the Interest Coverage Ratio in our repurchase agreements and term participation facility to provide that for the quarters ended June 30, 2024 through September 30, 2025, our Interest Coverage Ratio shall not be less than 1.1 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 continue to work with our counterparties on modifying financial covenants as needed. | ||||||
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] | |||||||
Interest Coverage Ratio | 1.30% | ||||||
Tangible networth as of measurement date | $ 1,910,000,000 | ||||||
Cash liquidity amount to be maintained | $ 50,000,000 | ||||||
Secured Overnight Financing Rate (SOFR) | |||||||
Debt Instrument [Line Items] | |||||||
One month LIBOR/ SOFR rate | 5.34% | 5.35% | |||||
Revolving Credit Agreements | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Interest Coverage Ratio | 1.10% | ||||||
Secured Term Loan | |||||||
Debt Instrument [Line Items] | |||||||
Contractual Maturity Date | Aug. 09, 2026 | Aug. 09, 2026 | |||||
Secured Term Loan | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Interest Coverage Ratio | 1.50% | ||||||
Secured Term Loan | Secured Overnight Financing Rate (SOFR) | |||||||
Debt Instrument [Line Items] | |||||||
One month LIBOR/ SOFR rate | 5.34% | 5.35% | |||||
Secured Term Loan | Secured Overnight Financing Rate (SOFR) | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
One-month SOFR | 0.10% | ||||||
Secured Term Loan | Secured Overnight Financing Rate (SOFR) | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
One-month SOFR | 0.50% | ||||||
Term participation facility | |||||||
Debt Instrument [Line Items] | |||||||
Contractual Maturity Date | Oct. 11, 2028 | Oct. 11, 2028 | |||||
Term participation facility | Master Participation and Administration Agreement | Mortgage Loans | |||||||
Debt Instrument [Line Items] | |||||||
Credit facility outstanding balance | $ 370,200,000 | $ 465,400,000 | |||||
Term facility maximum commitment | $ 464,300,000 | 654,400,000 | |||||
Maturity date | Oct. 11, 2028 | ||||||
Short-Term Funding Facility | |||||||
Debt Instrument [Line Items] | |||||||
Credit facility outstanding balance | $ 0 | $ 0 | |||||
Line of credit, maximum borrowing capacity | $ 150,000,000 | ||||||
Contractual Maturity Date | Jun. 29, 2025 | ||||||
Credit spread adjustment rate | 0.0225 | ||||||
Line of credit facility increase | $ 500,000,000 | ||||||
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% |
Debt Obligations - Summary of T
Debt Obligations - Summary of Term Participation Facility (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2024 | Dec. 31, 2023 | |
Term Participations [Line Items] | ||
Carrying Value | $ 100,759 | $ 120,508 |
Carrying Value of Collateral | $ 183,992 | $ 340,069 |
Term Participation Facility | ||
Term Participations [Line Items] | ||
Contractual Maturity Date | Oct. 11, 2028 | Oct. 11, 2028 |
Borrowing Outstanding | $ 370,193 | $ 465,434 |
Carrying Value | 370,193 | 465,434 |
Carrying Value of Collateral | $ 624,263 | $ 797,335 |
Debt Obligations - Summary of L
Debt Obligations - Summary of Loan Participations Sold (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2024 | Dec. 31, 2023 | |||
Loan Participations Sold [Line Items] | ||||
Borrowing Outstanding | $ 100,634 | $ 120,634 | ||
Carrying Value | 100,759 | 120,508 | ||
Carrying Value of Collateral | $ 183,992 | $ 340,069 | ||
Variable Loan One | ||||
Loan Participations Sold [Line Items] | ||||
Contractual Maturity Date | Oct. 18, 2024 | [1] | Oct. 18, 2024 | [2] |
Maximum Extension Date | Oct. 18, 2024 | Oct. 18, 2024 | ||
Borrowing Outstanding | $ 100,634 | $ 100,634 | ||
Carrying Value | 100,759 | 100,508 | ||
Carrying Value of Collateral | $ 183,992 | $ 182,723 | ||
Fixed Loan | ||||
Loan Participations Sold [Line Items] | ||||
Contractual Maturity Date | Dec. 31, 2024 | |||
Maximum Extension Date | Dec. 31, 2025 | |||
Borrowing Outstanding | $ 20,000 | |||
Carrying Value | 20,000 | |||
Carrying Value of Collateral | $ 157,346 | |||
[1] Carrying value of collateral includes cash reserve balances held by our financing counterparty. Carrying value of collateral includes cash reserve balances held by our financing counterparty. |
Debt Obligations - Summary of_3
Debt Obligations - Summary of Loan Participations Sold (Parenthetical) (Details) | Feb. 08, 2021 |
Loan Participations Sold [Line Items] | |
Investment, Type [Extensible Enumeration] | Real Estate Investment [Member] |
Debt Obligations - Summary of N
Debt Obligations - Summary of Notes Payable (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2024 | Dec. 31, 2023 | |
Debt Instrument [Line Items] | ||
Borrowing Outstanding | $ 247,027 | $ 286,827 |
Carrying Value | 244,018 | 283,341 |
Carrying Value of Collateral | $ 396,828 | $ 401,856 |
Notes Payable One | ||
Debt Instrument [Line Items] | ||
Contractual Maturity Date | May 13, 2026 | Dec. 31, 2024 |
Maximum Extension Date | May 13, 2027 | Dec. 31, 2025 |
Borrowing Outstanding | $ 52,973 | $ 110,714 |
Carrying Value | 52,326 | 110,152 |
Carrying Value of Collateral | $ 119,036 | $ 157,346 |
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 | $ 55,004 | $ 50,418 |
Carrying Value | 54,295 | 49,576 |
Carrying Value of Collateral | $ 67,583 | $ 61,941 |
Notes Payable Three | ||
Debt Instrument [Line Items] | ||
Contractual Maturity Date | Sep. 02, 2026 | Sep. 02, 2026 |
Maximum Extension Date | Sep. 02, 2027 | Sep. 02, 2027 |
Borrowing Outstanding | $ 79,917 | $ 46,267 |
Carrying Value | 78,793 | 45,063 |
Carrying Value of Collateral | $ 112,340 | $ 64,270 |
Notes Payable Four | ||
Debt Instrument [Line Items] | ||
Contractual Maturity Date | Nov. 22, 2024 | |
Maximum Extension Date | Nov. 24, 2026 | |
Borrowing Outstanding | $ 39,504 | |
Carrying Value | 39,237 | |
Carrying Value of Collateral | $ 52,662 | |
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 | $ 59,133 | $ 39,924 |
Carrying Value | 58,604 | 39,313 |
Carrying Value of Collateral | $ 97,869 | $ 65,637 |
Debt Obligations - Summary of S
Debt Obligations - Summary of Secured Term Loan (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2024 | Dec. 31, 2023 | |||
Secured Term Loan [Line Items] | ||||
Borrowing Outstanding | $ 247,027 | $ 286,827 | ||
Carrying Value | $ 100,759 | $ 120,508 | ||
Secured Term Loan | ||||
Secured Term Loan [Line Items] | ||||
Contractual Maturity Date | Aug. 09, 2026 | Aug. 09, 2026 | ||
Stated Rate | S + 4.50% | [1] | S + 4.50% | [2] |
Interest Rate | 9.94% | 9.95% | ||
Borrowing Outstanding | $ 721,638 | $ 725,452 | ||
Carrying Value | $ 711,177 | $ 712,576 | ||
[1] SOFR at June 30, 2024 was 5.34 % . SOFR at December 31, 2023 was 5.35 % . |
Debt Obligations - Summary of_4
Debt Obligations - Summary of Secured Term Loan (Parenthetical) (Details) - Secured Overnight Financing Rate (SOFR) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2024 | Dec. 31, 2023 | |
Secured Term Loan [Line Items] | ||
One month LIBOR/ SOFR rate | 5.34% | 5.35% |
Secured Term Loan | ||
Secured Term Loan [Line Items] | ||
One month LIBOR/ SOFR rate | 5.34% | 5.35% |
Debt Obligations - Summary of D
Debt Obligations - Summary of Debt Related To Real Estate Owned (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |||
Feb. 08, 2021 | Jun. 30, 2024 | Dec. 31, 2023 | |||
Debt Instrument Real Estate Owned Net [Line Items] | |||||
Carrying Value | $ 100,759 | $ 120,508 | |||
Real Estate Investment | |||||
Debt Instrument Real Estate Owned Net [Line Items] | |||||
Contractual Maturity Date | Nov. 09, 2024 | Nov. 09, 2024 | Feb. 09, 2024 | ||
Stated Rate | S + 2.90 | [1] | S + 2.83 | [2] | |
Net Interest Rate | 7.90% | [1] | 5.83% | [2] | |
Borrowing Outstanding | $ 280,000 | $ 290,000 | |||
Carrying Value | $ 278,600 | $ 289,913 | |||
[1] SOFR at June 30, 2024 was 5.34 % , which exceeded the 5.00 % ceiling provided by our interest rate cap. See Note 7 - Derivatives for further detail. SOFR at December 31, 2023 was 5.35 % , 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) - Real Estate Investment - One Month SOFR | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
Debt Instrument Real Estate Owned Net [Line Items] | ||
Debt instrument basis spread on variable rate | 5.34% | 5.35% |
Interest Rate Cap | ||
Debt Instrument Real Estate Owned Net [Line Items] | ||
Debt instrument basis spread on variable rate | 5% | 3% |
Debt Obligations - Summary of I
Debt Obligations - Summary of Interest Expense and Amortization (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | ||
Debt Disclosure [Abstract] | |||||
Interest expense on secured financings | $ 90,357 | $ 95,860 | $ 183,173 | $ 178,810 | |
Interest expense on secured term loan | 18,174 | 17,942 | 36,419 | 35,183 | |
Amortization of deferred financing costs | 4,694 | 5,874 | 9,564 | 11,710 | |
Interest and related expense | 113,225 | 119,676 | 229,156 | 225,703 | |
Interest expense on debt related to real estate owned | [1] | 6,869 | 5,865 | 13,198 | 11,309 |
Total interest and related expense | $ 120,094 | $ 125,541 | $ 242,354 | $ 237,012 | |
[1] For the three months ended June 30, 2024 and 2023, interest on debt related to real estate owned includes $ 1.1 million and $ 132,000 of amortization of deferred financing costs, respectively. For the six months ended June 30, 2024 and 2023, interest on debt related to real estate owned includes $ 1.5 million and $ 263,000 of amortization of financing costs, respectively. |
Debt Obligations - Summary of_6
Debt Obligations - Summary of Interest Expense and Amortization (Parenthetical) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Debt Disclosure [Abstract] | ||||
Amortization of financing costs included in Interest on debt related to real estate owned | $ 1,100,000 | $ 132,000 | $ 1,500,000 | $ 263,000 |
Derivatives - Additional Inform
Derivatives - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||||
Feb. 07, 2024 | Jun. 02, 2021 | Feb. 08, 2021 | Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Derivatives Fair Value Line Items | ||||||||
Derivative liability notional amount | $ 280 | |||||||
Strike rate | 5% | |||||||
Derivative fee paid | $ 0.5 | |||||||
Interest Rate Cap | ||||||||
Derivatives Fair Value Line Items | ||||||||
Derivative liability notional amount | $ 280 | $ 290 | ||||||
Derivative maturity date | Nov. 15, 2024 | Feb. 15, 2024 | ||||||
Strike rate | 5% | 3% | ||||||
Derivative fee paid | $ 0.5 | $ 0.3 | ||||||
Fair value of interest rate cap | $ 0.3 | $ 0.3 | $ 0.9 | |||||
Proceeds from interest rate cap | $ 0.2 | $ 1.5 | $ 1.1 | $ 2.7 | ||||
Interest Rate Cap | Maximum | ||||||||
Derivatives Fair Value Line Items | ||||||||
Maximum interest rate of debt related to real estate owned | 7.90% | 5.83% |
Fair Value Measurements Additio
Fair Value Measurements Additional Information (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Level 2 [Member] | Interest Rate Cap [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value amount | $ 0.3 | $ 0.9 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Financial Instruments Measured at Carrying And Estimated Fair Value (Details) - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Loans receivable held-for-investment, net | $ 6,709,517,000 | $ 6,877,425,000 |
Loans receivable held-for-sale | 0 | 261,709,000 |
Repurchase agreements | 3,620,694,000 | 3,805,678,000 |
Term participation facility | 370,193,000 | 465,434,000 |
Loan participations sold, net | 100,759,000 | 120,508,000 |
Notes payable, net | 244,018,000 | 283,341,000 |
Secured term loan, net | 711,177,000 | 712,576,000 |
Debt related to real estate owned, net | 278,600,000 | 289,913,000 |
Unpaid Principal Balance [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Loans receivable held-for-investment, net | 6,928,274,000 | 7,044,524,000 |
Loans receivable held-for-sale | 264,065,000 | |
Repurchase agreements | 3,620,694,000 | 3,805,678,000 |
Term participation facility | 370,193,000 | 465,434,000 |
Loan participations sold, net | 100,634,000 | 120,634,000 |
Notes payable, net | 247,027,000 | 286,827,000 |
Secured term loan, net | 721,638,000 | 725,452,000 |
Debt related to real estate owned, net | 280,000,000 | 290,000,000 |
Fair Value [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Loans receivable held-for-investment, net | 6,688,243,000 | 6,875,377,000 |
Loans receivable held-for-sale | 261,709,000 | |
Repurchase agreements | 3,620,694,000 | 3,805,678,000 |
Term participation facility | 370,677,000 | 463,010,000 |
Loan participations sold, net | 100,297,000 | 120,000,000 |
Notes payable, net | 244,781,000 | 284,904,000 |
Secured term loan, net | 664,809,000 | 694,620,000 |
Debt related to real estate owned, net | 278,318,000 | 289,422,000 |
Level 3 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Loans receivable held-for-investment, net | 6,688,243,000 | 6,875,377,000 |
Loans receivable held-for-sale | 261,709,000 | |
Repurchase agreements | 3,620,694,000 | 3,805,678,000 |
Term participation facility | 370,677,000 | 463,010,000 |
Loan participations sold, net | 100,297,000 | 120,000,000 |
Notes payable, net | 244,781,000 | 284,904,000 |
Secured term loan, net | 664,809,000 | 694,620,000 |
Debt related to real estate owned, net | $ 278,318,000 | $ 289,422,000 |
Equity - Additional Information
Equity - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | 6 Months Ended | ||||
Jun. 30, 2024 | May 10, 2024 | Dec. 31, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | |
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 | 138,954,433 | 138,745,357 | |||
Common stock outstanding | 138,954,433 | 138,745,357 | |||
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 | 138,954,433 | 138,745,357 | |||
Common stock outstanding | 138,954,433 | 138,745,357 | 138,385,904 | 138,376,144 | |
Common Stock [Member] | At the Market Stock Offering Program [Member] | |||||
Class Of Stock [Line Items] | |||||
Aggregate sale price | $ 150 | ||||
Professional and legal fees | $ 0.5 | ||||
Common shares issued | 0 | ||||
Common stock value available for future issuance | $ 150 |
Equity -Schedule of Common Stoc
Equity -Schedule of Common Stock Outstanding (Details) - shares | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Class Of Stock [Line Items] | ||
Beginning balance | 138,745,357 | |
Ending balance | 138,954,433 | |
Common Stock [Member] | ||
Class Of Stock [Line Items] | ||
Beginning balance | 138,745,357 | 138,376,144 |
Issuance of common stock in exchange for fully vested RSUs | 209,076 | 9,760 |
Ending balance | 138,954,433 | 138,385,904 |
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 | |||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | |
Class Of Stock [Line Items] | ||||
Dividends declared - common stock | $ 35,541 | $ 35,622 | $ 52,424 | $ 52,404 |
Record Date - common stock | Jun. 28, 2024 | Mar. 29, 2024 | Jun. 30, 2023 | Mar. 31, 2023 |
Payment Date - common stock | Jul. 15, 2024 | Apr. 15, 2024 | Jul. 14, 2023 | Apr. 14, 2023 |
Common Stock [Member] | ||||
Class Of Stock [Line Items] | ||||
Dividends declared - common stock | $ 34,739 | $ 34,687 | $ 51,203 | $ 51,199 |
Dividends declared - common stock per share | $ 0.25 | $ 0.25 | $ 0.37 | $ 0.37 |
Earnings per Share - Additional
Earnings per Share - Additional Information (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Dilutive securities | 0 | 0 | ||
Weighted Average RSUs | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Dilutive securities | 3,197,914 | 3,249,255 | 2,905,313 | 2,719,157 |
Earnings per Share - Schedule o
Earnings per Share - Schedule of Basic and Diluted Earning per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | ||
Earnings Per Share [Abstract] | |||||
Net (loss) income | $ (11,554) | $ 4,253 | $ (64,349) | $ 40,931 | |
Dividends on participating securities | [1] | (780) | (1,217) | (1,704) | (2,418) |
Basic (loss) earnings | $ (12,334) | $ 3,036 | $ (66,053) | $ 38,513 | |
Weighted-average shares of common stock outstanding - basic | [2] | 139,078,117 | 138,399,446 | 138,934,615 | 138,392,666 |
Weighted-average shares of common stock outstanding - diluted | [2] | 139,078,117 | 138,399,446 | 138,934,615 | 138,392,666 |
Net (loss) income per share of common stock - basic | $ (0.09) | $ 0.02 | $ (0.48) | $ 0.28 | |
Net (loss) income per share of common stock - diluted | $ (0.09) | $ 0.02 | $ (0.48) | $ 0.28 | |
[1] For the three months ended June 30, 2024 and 2023, dividends on participating securities excludes $ 22,000 and $ 4,000 of dividends on fully vested RSUs. For the six months ended June 30, 2024 and 2023, dividends on participating securities excludes $ 33,000 and $ 8,000 of dividends on fully vested RSUs. Amounts as of June 30, 2024 and 2023 include 89,282 and 33,257 fully vested RSUs. |
Earnings Per Share - Schedule_2
Earnings Per Share - Schedule of Basic and Diluted Earning per Share (Parenthetical) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Earnings Per Share Diluted [Line Items] | ||||
Dividends on fully vested RSU | $ 22,000 | $ 4,000 | $ 33,000 | $ 8,000 |
RSUs | ||||
Earnings Per Share Diluted [Line Items] | ||||
Shares vested | 89,282 | 33,257 |
Related Party Transactions - Su
Related Party Transactions - Summary of Management and Incentive Fees (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Related Party Transactions [Abstract] | ||||
Management fees - affiliate | $ 9,011 | $ 9,641 | $ 18,221 | $ 19,297 |
Incentive fees | 1,558 | |||
Total | $ 9,011 | $ 9,641 | $ 18,221 | $ 20,855 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Related Party Transaction [Line Items] | |||||
Annual base management fee percentage | 1.50% | ||||
Base management fee payable to affiliate | $ 9,011,000 | $ 9,011,000 | $ 9,315,000 | ||
Management fees - affiliate | 9,011,000 | $ 9,641,000 | $ 18,221,000 | $ 19,297,000 | |
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 $9.0 million and $9.3 million were accrued and were included in management fee payable – affiliate, on our consolidated balance sheets at June 30, 2024 and December 31, 2023, respectively. | ||||
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 | 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 | 43,182,000 | $ 43,182,000 | 47,368,000 | ||
Reimbursements | |||||
Related Party Transaction [Line Items] | |||||
General and administrative expense | 1,400,000 | $ 1,300,000 | 2,200,000 | $ 2,000,000 | |
Other liabilities | $ 1,000,000 | $ 1,000,000 | $ 1,000,000 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Unrecognized compensation expense | $ 29,200,000 | $ 29,200,000 | ||
Unrecognized compensation expense expected to recognized over a remaining period | 1 year 8 months 12 days | |||
Time Based Restricted Stock Units | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Shares vested | 420,186 | 29,280 | ||
Adjustment to additional paid in capital for shares vested | $ 1,400,000 | $ 1,400,000 | ||
Time Based Restricted Stock Units | Non-Employee Board Members | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Shares vested | 360,316 | 360,316 | ||
Time Based Restricted Stock Units | Director | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Shares issued upon vesting of RSU | 188,230 | 0 | 188,230 | 0 |
RSUs | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock-based compensation | $ 4,000,000 | $ 4,400,000 | $ 8,400,000 | $ 7,800,000 |
Shares vested | 89,282 | 33,257 | ||
RSUs | Non-Employee Board Members | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of shares issued | 5,027 | 4,007 | 8,478 | 6,887 |
Stock-based compensation | $ 47,000 | $ 48,000 | $ 94,000 | $ 91,000 |
2016 Incentive Award Plan | Maximum | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Remaining number of shares that may be issued | 3,960,509 | 3,960,509 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Time-based RSUs Granted to Non-executive Members of the Board (Details) - Time-based Restricted Stock Units - $ / shares | 6 Months Ended | ||||||
Jun. 01, 2024 | Jun. 01, 2023 | Jun. 01, 2022 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||
Total RSU Grant | 1,264,214 | 1,158,536 | |||||
Grant Date Fair Value Per Share | $ 15.31 | $ 18.74 | |||||
Non-Employee Board Members | |||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||||
Total RSU Grant | 89,214 | 58,536 | 29,280 | ||||
Grant Date Fair Value Per Share | $ 8.07 | $ 10.25 | $ 20.49 |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Time-Based Restricted Stock Units Activity (Details) - Time-based Restricted Stock Units - $ / shares | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Number of Restricted Share Units, Unvested beginning balance | 2,526,202 | 2,159,280 |
Number of Restricted Share Units, Granted | 1,264,214 | 1,158,536 |
Number of Restricted Share Units, Vested | (420,186) | (29,280) |
Number of Restricted Share Units, Forfeited | (249,334) | (20,000) |
Number of Restricted Share Units, Unvested ending balance | 3,120,896 | 3,268,536 |
Weighted-Average Grant Date Fair Value Per Share, Unvested beginning balance | $ 15.31 | $ 18.74 |
Weighted-Average Grant Date Fair Value Per Share, Unvested Granted | 9.53 | 11.25 |
Weighted-Average Grant Date Fair Value Per Share, Unvested Vested | 11.15 | 20.49 |
Weighted-Average Grant Date Fair Value Per Share, Unvested Forfeited | 12.85 | 18.72 |
Weighted-Average Grant Date Fair Value Per Share, Unvested ending balance | $ 13.72 | $ 16.07 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2024 | Dec. 31, 2023 | |
Schedule Of Income Loss Before Income Taxes [Line Items] | ||
Uncertain tax positions | $ 0 | $ 0 |
Valuation allowance | $ 26,700,000 | 21,700,000 |
TRS [Member] | ||
Schedule Of Income Loss Before Income Taxes [Line Items] | ||
Percentage of REIT taxable income | 90% | |
Deferred tax assets | $ 0 | 0 |
Deferred tax liabilities | $ 0 | $ 0 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2024 | Dec. 31, 2023 | |
Loss Contingencies [Line Items] | ||
Return of capital distribution from CMTG/CN Mortgage REIT LLC | $ 123.3 | $ 111.1 |
Unfunded loan commitments | $ 749 | $ 1,100 |
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 | Jun. 30, 2024 | Dec. 31, 2023 |
Commitments and Contingencies Disclosure [Abstract] | ||
2024 | $ 2,191,071 | |
2025 | 1,692,395 | |
2026 | 1,456,720 | |
2027 | 0 | |
2028 | 0 | |
Long term debt | 5,340,186 | |
2024 | 934,237 | |
2025 | 994,971 | |
2026 | 1,619,057 | |
2027 | 1,417,465 | |
2028 | 374,456 | |
Long-term Debt | $ 5,340,186 | $ 5,694,025 |
Commitments and Contingencies_3
Commitments and Contingencies - Schedule of Contractual Maturity Payment (Parenthetical) (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2024 | Dec. 31, 2023 | |
Loss Contingencies [Line Items] | ||
Borrowing Outstanding | $ 5,340,186 | $ 5,694,025 |
Unpaid principal balance | $ 271,533 | |
Extended Maturity Date in 2023 | ||
Loss Contingencies [Line Items] | ||
Borrowing Outstanding | 395,900 | |
Unpaid principal balance | $ 811,200 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Aug. 05, 2024 | Jul. 31, 2024 | Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2024 | Dec. 31, 2023 | |
Subsequent Event [Line Items] | ||||||||
Unpaid Principal Balance | $ 271,533 | |||||||
Payment Date - common stock | Jul. 15, 2024 | Apr. 15, 2024 | Jul. 14, 2023 | Apr. 14, 2023 | ||||
Record Date - common stock | Jun. 28, 2024 | Mar. 29, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | ||||
Combined of Two Loans | ||||||||
Subsequent Event [Line Items] | ||||||||
Unpaid Principal Balance | $ 121,200 | |||||||
Subsequent Event | ||||||||
Subsequent Event [Line Items] | ||||||||
Payment Date - common stock | Oct. 15, 2024 | |||||||
Record Date - common stock | Sep. 30, 2024 | |||||||
Subsequent Event | Office | ||||||||
Subsequent Event [Line Items] | ||||||||
Unpaid Principal Balance | $ 122,500 | |||||||
Cash proceeds from loans receivable | 25,100 | |||||||
Subsequent Event | Retail and Entertainment | ||||||||
Subsequent Event [Line Items] | ||||||||
Unpaid Principal Balance | $ 100,000 |