Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2022 | May 05, 2022 | |
Cover [Abstract] | ||
Entity Registrant Name | Claros Mortgage Trust, Inc. | |
Entity Central Index Key | 0001666291 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Mar. 31, 2022 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Trading Symbol | CMTG | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 139,633,162 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Entity File Number | 001-40993 | |
Entity Tax Identification Number | 47-4074900 | |
Entity Address, Address Line One | c/o Mack Real Estate Credit Strategies, L.P. | |
Entity Address, Address Line Two | 60 Columbus Circle | |
Entity Address, Address Line Three | 20th Floor | |
Entity Address, City or Town | New York | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10023 | |
City Area Code | 212 | |
Local Phone Number | 484-0050 | |
Title of 12(b) Security | Common Stock, $0.01 par value per share | |
Security Exchange Name | NYSE | |
Entity Incorporation, State or Country Code | MD |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Assets | ||
Cash and cash equivalents | $ 444,001 | $ 310,194 |
Restricted cash | 23,139 | 23,942 |
Loan principal payments held by servicer | 9,999 | 154,600 |
Loans receivable held-for-investment | 7,038,246 | 6,407,305 |
Less: current expected credit loss reserve | (65,608) | (67,010) |
Loans receivable held-for-investment, net | 6,972,638 | 6,340,295 |
Interests in loans receivable held-for-investment, net | 153,236 | 161,850 |
Real estate owned, net | 404,947 | 406,887 |
Other assets | 64,852 | 57,503 |
Total assets | 8,072,812 | 7,455,271 |
Liabilities and Stockholders' Equity | ||
Repurchase agreements | 4,019,910 | 3,489,511 |
Loan participations sold, net | 167,875 | 167,744 |
Notes payable, net | 143,527 | 48,000 |
Secured term loan, net | 738,928 | 739,762 |
Debt related to real estate owned, net | 289,829 | 289,806 |
Other liabilities | 71,968 | 54,457 |
Dividends payable | 51,672 | 51,741 |
Management fee payable - affiliate | 9,807 | 9,983 |
Total liabilities | 5,493,516 | 4,851,004 |
Commitments and contingencies - Note 12 | ||
Stockholders' Equity | ||
Common stock, $0.01 par value, 500,000,000 shares authorized, 140,055,714 and 140,055,714 shares issued and 139,653,799 and 139,840,088 shares outstanding at March 31, 2022 and December 31, 2021, respectively | 1,400 | 1,400 |
Additional paid-in capital | 2,722,981 | 2,726,190 |
Dividends declared | (877,331) | (825,659) |
Retained earnings | 694,112 | 664,700 |
Total Claros Mortgage Trust, Inc. equity | 2,541,162 | 2,566,631 |
Non-controlling interests | 38,134 | 37,636 |
Total stockholders' equity | 2,579,296 | 2,604,267 |
Total liabilities and stockholders' equity | $ 8,072,812 | $ 7,455,271 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Mar. 31, 2022 | Dec. 31, 2021 |
Statement Of Financial Position [Abstract] | ||
Common stock par value | $ 0.01 | $ 0.01 |
Common stock authorized | 500,000,000 | 500,000,000 |
Common stock, shares issued | 140,055,714 | 140,055,714 |
Common stock outstanding | 139,653,799 | 139,840,088 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Revenue | ||
Interest and related income | $ 90,694 | $ 105,803 |
Less: interest and related expense | 39,580 | 46,287 |
Net interest income | 51,114 | 59,516 |
Revenue from real estate owned | 6,813 | 1,051 |
Total revenue | 57,927 | 60,567 |
Expenses | ||
Management fees - affiliate | 9,807 | 9,626 |
Equity compensation | (1,642) | |
General and administrative expenses | 4,343 | 1,189 |
Operating expenses from real estate owned | 7,780 | 1,700 |
Interest expense from debt related to real estate owned | 2,584 | 1,475 |
Depreciation on real estate owned | 1,940 | 1,293 |
Total expenses | 26,454 | 13,641 |
Gain on foreclosure of real estate owned | 1,430 | |
Other income | 5,855 | |
(Provision) reversal of current expected credit loss reserve | (2,102) | 185 |
Income before income taxes | 29,371 | 54,396 |
Income tax benefit | 4,179 | |
Net income | 29,371 | 58,575 |
Net loss attributable to non-controlling interests | (41) | (37) |
Net income attributable to preferred stock | 4 | |
Net income attributable to common stock | $ 29,412 | $ 58,608 |
Net income per share of common stock | ||
Basic and diluted | $ 0.21 | $ 0.44 |
Weighted-average shares of common stock outstanding | ||
Basic and diluted | 139,712,501 | 133,609,126 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity (unaudited) - USD ($) $ in Thousands | Total | Cumulative Effect Period of Adoption Adjustment [Member] | Dividend Declared [Member] | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Repurchased Shares [Member] | Retained Earnings [Member] | Retained Earnings [Member]Cumulative Effect Period of Adoption Adjustment [Member] | Noncontrolling Interest [Member] | Redeemable Common Stock [Member] | Redeemable Common Stock [Member]Cumulative Effect Period of Adoption Adjustment [Member] | |
Balance at Dec. 31, 2020 | $ 2,481,030 | $ (573,677) | $ 125 | $ 1,255 | $ 2,491,836 | $ 526,205 | $ 35,286 | ||||||
Balance (Accounting Standards Update 2016-13 [Member]) at Dec. 31, 2020 | $ (73,975) | $ (73,975) | $ (4,276) | ||||||||||
Balance (in shares) at Dec. 31, 2020 | 125 | 125,541,736 | |||||||||||
Balance at Dec. 31, 2020 | $ 141,356 | ||||||||||||
Restricted stock units earned | (7,394) | (7,394) | |||||||||||
Contributions from non-controlling interests | 897 | 897 | |||||||||||
Offering costs | (28) | (28) | (2) | ||||||||||
Dividends on common stock | $ (50,000) | ||||||||||||
Dividends on preferred stock | (4) | $ (4) | [1] | ||||||||||
Dividends on common stock, redeemable common stock and vested restricted stock units | (47,262) | (47,262) | (2,738) | ||||||||||
Dividends on unvested restricted stock units | 389 | 389 | |||||||||||
Accretion of redeemable common stock | 81 | 81 | |||||||||||
Temporary Equity, Accretion of redeemable common stock | (81) | ||||||||||||
Net income (loss) | 55,367 | 4 | 55,400 | (37) | 3,208 | ||||||||
Balance at Mar. 31, 2021 | 2,409,101 | (620,550) | $ 125 | $ 1,255 | 2,484,495 | 507,630 | 36,146 | ||||||
Balance (in shares) at Mar. 31, 2021 | 125 | 125,541,736 | |||||||||||
Balance at Mar. 31, 2021 | $ 137,467 | ||||||||||||
Balance at Dec. 31, 2021 | 2,604,267 | (825,659) | $ 1,400 | 2,726,190 | $ (215,626) | 664,700 | 37,636 | ||||||
Balance (in shares) at Dec. 31, 2021 | 140,055,714 | ||||||||||||
Repurchased shares | (3,179) | (3,179) | (186,289) | ||||||||||
Contributions from non-controlling interests | 539 | 539 | |||||||||||
Offering costs | (30) | (30) | |||||||||||
Dividends on common stock | (51,672) | (51,672) | $ (51,672) | ||||||||||
Net income (loss) | 29,371 | 29,412 | (41) | ||||||||||
Balance at Mar. 31, 2022 | $ 2,579,296 | $ (877,331) | $ 1,400 | $ 2,722,981 | $ (401,915) | $ 694,112 | $ 38,134 | ||||||
Balance (in shares) at Mar. 31, 2022 | 140,055,714 | ||||||||||||
[1] | Includes 125 preferred units issued at a price of $1,000 per unit and entitled to a 12.5% dividend paid semi-annually that were redeemed on December 15, 2021 at a price of $1,000 per unit. |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Cash flows from operating activities | ||
Net income | $ 29,371 | $ 58,575 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Accretion of origination fees on loans receivable | (4,304) | (5,791) |
Accretion of origination fees on interests in loans receivable | (204) | (258) |
Amortization of financing costs | 4,632 | 5,032 |
Non-cash equity compensation | (1,642) | |
Other income | (5,855) | |
Depreciation on real estate owned | 1,940 | 1,293 |
Gain on foreclosure of real estate owned | (1,430) | |
Non-cash advances on loans receivable in lieu of interest | (13,507) | (18,494) |
Non-cash advances on interests in loans receivable in lieu of interest | (2,427) | (4,769) |
Non-cash advances on secured financings in lieu of interest | 5,203 | |
Repayment of non-cash advances on loans receivable in lieu of interest | 10,745 | 5,134 |
Repayment of non-cash advances on interests in loans receivable in lieu of interest | 1,834 | 261 |
Repayment of non-cash advances on secured financings in lieu of interest | (1,112) | |
Provision (reversal) of current expected credit loss reserve | 2,102 | (185) |
Changes in operating assets and liabilities: | ||
Other assets | (8,170) | (2,904) |
Other liabilities | 784 | (2) |
Management fee payable - affiliate | (176) | (223) |
Incentive fee payable - affiliate | (187) | |
Net cash provided by operating activities | 22,620 | 32,646 |
Net cash provided by operating activities | 22,620 | 32,646 |
Cash flows from investing activities | ||
Loan originations, acquisitions and advances, net of fees | (782,806) | (146,244) |
Advances of interests in loans receivable, net of fees | (14,653) | (29,273) |
Repayments of loans receivable | 302,437 | 80,776 |
Repayments of interests in loans receivable | 23,971 | 2,429 |
Extension and exit fees received from loans receivable | 1,095 | 1,666 |
Extension and exit fees received from interests in loans receivable | 65 | |
Cash, cash equivalents and restricted cash from foreclosure of properties | 9,580 | |
Foreclosure of real estate owned | (11,463) | |
Reserves and deposits held for loans receivable | 13,303 | 1,828 |
Net cash used in investing activities | (456,588) | (90,701) |
Net cash used in investing activities | (456,588) | (90,701) |
Cash flows from financing activities | ||
Repurchase of common stock | (3,179) | |
Contributions from non-controlling interests | 539 | 897 |
Offering costs | (300) | (30) |
Dividends paid on common stock and vested restricted stock units | (51,741) | (47,268) |
Dividends paid on redeemable common stock | (2,732) | |
Proceeds from secured financings | 999,441 | 103,940 |
Payment of financing costs | (4,928) | (3,570) |
Repayments of secured financings | (370,953) | (53,456) |
Repayments of secured term loan | (1,907) | (1,946) |
Net cash provided by (used in) financing activities | 566,972 | (4,165) |
Net increase (decrease) in cash, cash equivalents and restricted cash | 133,004 | (62,220) |
Cash, cash equivalents and restricted cash, beginning of period | 334,136 | 430,974 |
Cash, cash equivalents and restricted cash, end of period | 467,140 | 368,754 |
Cash and cash equivalents, beginning of period | 310,194 | 427,512 |
Restricted cash, beginning of period | 23,942 | 3,462 |
Cash and cash equivalents, end of period | 444,001 | 348,773 |
Restricted cash, end of period | 23,139 | 19,981 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | 36,167 | 37,268 |
Supplemental disclosure of non-cash investing and financing activities: | ||
Dividends accrued on common stock and vested restricted stock units | 51,672 | 50,000 |
Dividends accrued on preferred stock | 4 | |
Dividends accrued on unvested restricted stock units | 2,988 | |
Loan principal payments held by servicer | 9,999 | 3,694 |
Accrued financing costs | $ 6,250 | 167 |
Accrued offering costs | 1,516 | |
Non-cash fees on loans receivable | 402 | |
Working capital consolidated | (18,546) | |
Settlement of loan receivable | (103,901) | |
Real estate acquired in settlement of loan receivable | 414,000 | |
Assumption of debt related to real estate owned | $ (300,000) |
Organization
Organization | 3 Months Ended |
Mar. 31, 2022 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization | Note 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 or investments in joint ventures. Any references to the Company refer to the Company, its consolidated joint venture, CMTG/TT Mortgage REIT LLC (“CMTG/TT” or “JV REIT”), a Delaware limited liability company, and the consolidated subsidiaries of each entity. 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 11 – Income Taxes regarding taxes applicable to the Company. We are externally managed by Claros REIT Management LP (the “Manager”), our affiliate, through a management agreement (the "Management Agreement") pursuant to which the Manager provides a management team and other professionals who are responsible for implementing our business strategy, subject to the supervision of our board of directors. In exchange for its services, the Manager is entitled to management fees and incentive fees. See Note 9 – Related Party Transactions regarding the Management Agreement. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note Basis of Presentation and Principles of Consolidation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). References to common stock in 2021 includes redeemable common stock. These unaudited consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2021, as filed with the Securities and Exchange Commission. In the opinion of management, all adjustments (consisting only of normal recurring adjustments) necessary for a fair statement of our financial position, results of operations and cash flows have been included. Our results of operations for the three months ended March 31, 2022 are not necessarily indicative of the results to be expected for the full year or any other future period. The consolidated balance sheet at December 31, 2021 was derived from the audited annual financial statements but does not contain all of the footnote disclosures from the annual financial statements. Use of Estimates The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Estimates that are particularly susceptible to our judgment include, but are not limited to, the adequacy of allowance for loan losses, the determination of effective yield for recognition of interest income and interest expense and recognition of equity compensation expense. The novel coronavirus (“COVID-19”) pandemic has evolved since its onset during the first quarter of 2020, and while the global economy has begun to recover, uncertainty around future developments remain. Over the course of the pandemic, variants of COVID-19 have emerged and resulted in periods of increased infection rates, which caused many countries to re-implement quarantines and travel restrictions. The ongoing pandemic state has also affected global supply chains, the labor market, and inflation, which continue to impact many industries, including the collateral underlying certain of our loans. The overall impact to the global economy will depend largely on the recovery of disrupted supply chains and industries, the extent of the labor market interruptions, and the results of government interventions. Th e impact of COVID-19 on the current and future financial, economic and capital markets environment could remain uneven, and presents uncertainty and risk with respect to the performance of our loans receivable, interests in loans receivable and real estate owned, our financial condition, results of operations, liquidity, and ability to pay dividends. Current Expected Credit Losses The current expected credit loss (“CECL”) reserve required under ASU 2016-13 “Financial Instruments – Credit Losses – Measurement of Credit Losses on Financial Instruments (Topic 326)” (“ASU 2016-13”), reflects our current estimate of potential credit losses related to our loan portfolio. The initial CECL allowance recorded on January 1, 2021 is reflected as a direct charge to retained earnings on our consolidated statements of changes in stockholders’ equity. Subsequent changes to the CECL allowance are recognized through net income on our consolidated statements of operations. ASU 2016-13 specifies the reserve should be based on relevant information about past events, including historical loss experience, current portfolio and market conditions and reasonable and supportable forecasts for the duration of each respective loan. General CECL Allowance Our loans are typically collateralized by real estate, or in the case of mezzanine loans, by an equity interest in an entity that owns real estate. We consider key credit quality indicators in underwriting loans and estimating credit losses, including, but not limited to: the capitalization of borrowers and sponsors; the expertise of the borrowers and sponsors in a particular real estate sector and geographic market; collateral type; geographic region; use and occupancy of the property; property market value; loan-to-value (“LTV”) ratio; loan amount and lien position; debt service coverage ratio; our risk rating for the same and similar loans; and prior experience with the borrower and sponsor. This information is used to assess the financial and operating capability, experience and profitability of the sponsor/borrower. Ultimate repayment of our loans is sensitive to interest rate changes, general economic conditions, liquidity, LTV ratio, existence of a liquid investment sales market for commercial properties, and availability of replacement short-term or long-term financing. We regularly evaluate on a loan-by-loan basis, the extent and impact of any credit deterioration associated with the performance and/or value of the underlying collateral property, the financial and operating capability of the borrower/sponsor, the financial strength of loan guarantors, if any, and the overall economic environment, real estate sector, and geographic sub-market in which the borrower operates, at least quarterly. Such analyses are completed and reviewed by asset management personnel and evaluated by senior management, who utilize various data sources, including, to the extent available (i) periodic financial data such as property occupancy, tenant profile, rental rates, operating expenses, the borrower’s exit plan, and capitalization and discount rates, (ii) site inspections, (iii) sales and financing comparables, (iv) current credit spreads for refinancing and (v) other market data. Given the length of our loan terms, management’s reasonable and supportable forecast period exceeds the loan terms and as such we do not need to apply a reversion method. We have classified our loans receivable into the following categories to assess the impact of CECL: 1. Transitional Loans 2. Steady & Improving Loans 3. Stabilized Loans 4. Construction/Future Funding Loans For our loan receivable portfolio, we, with assistance from a third-party service provider, performed a quantitative assessment of the impact of CECL using the Expected Loss (“EL”) approach and the Lifetime Loss Rate (“LLR”) method depending on the allocated category. For transitional loans, steady & improving loans and stabilized loans, we have applied an EL approach because of the consistency in assessing credit risks and estimating expected credit losses. Due to the nature of construction loans, where repayment does not depend on the operating performance of the underlying property, we have applied a LLR approach to estimate the CECL impact. Our allowance for loan losses reflects our estimate of the current and future economic conditions that impact the performance of the commercial real estate assets securing our loans. These estimates include unemployment rates, interest rates, price indices for commercial property, and other macroeconomic factors that may influence the likelihood and magnitude of potential credit losses for our loans during their anticipated term. We license certain macroeconomic financial forecasts to inform of its view of the potential future impact that broader economic conditions may have on our loan portfolio’s performance. The forecasts are embedded in the licensed model that we use to estimate its allowance for loan losses. Selection of these economic forecasts require significant judgment about future events that, while based on the information available to us as of the balance sheet date, are ultimately unknowable with certainty, and the actual economic conditions impacting our portfolio could vary significantly from the estimates we made for the periods presented. Additionally, we assess the obligation to extend credit through our unfunded loan commitments over each loan’s contractual period, which is considered in the estimate of the allowance for loan losses. 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 its outstanding loans receivable that are collateralized directly or indirectly by real estate. Grading criteria include as-is or as-stabilized debt yield and debt service coverage ratios, term of loan, property type, loan type and other more subjective variables that include property or collateral location, as-is or as-stabilized collateral value, market conditions, industry conditions and sponsor’s financial stability. We utilize the grading system to determine each loan’s risk of loss and to provide a determination as to whether an individual loan is impaired and whether a special loan loss allowance is necessary. Based on a 5-point scale, the loans are graded “1” through “5,” from less risk to greater risk, which gradings are defined as follows: 1. Very Low Risk 2. Low Risk 3. Medium Risk 4. High Risk/Potential for Loss: A loan that has a risk of realizing a principal loss 5. Impaired/Loss Likely: A loan that has a very high risk of realizing a principal loss or has otherwise incurred a principal loss Specific CECL Allowance In certain circumstances we may determine that a loan is no longer suited for the model-based approach due to its unique risk characteristics, where we have deemed the borrower/sponsor to be experiencing financial difficulty, or because the repayment of the loan’s principal is collateral-dependent. We may instead elect to employ different methods to estimate loan losses that also conform to ASU 2016-13 and related guidance. If the recovery of a loan’s principal balance is entirely collateral-dependent, we may assess such an asset individually and elect to apply a practical expedient in accordance with ASU 2016-13. For such loan we would measure the specific allowance of each loan separately by using the fair value of the collateral or the net present value of its expected future cash flows. If the fair value of the collateral is less than the carrying value of the loan, an asset-specific allowance is created as a component of our overall allowance for loan losses (following the adoption of CECL, or as a loan loss allowance prior to the adoption of CECL). Specific allowances are equal to the excess of a loan’s carrying value to the present value of its expected cash flows discounted at the loan’s effective rate or the fair value of the collateral, less estimated costs to sell, if recovery of our investment is expected solely from the collateral. If we have determined that a loan or a portion of a loan is uncollectible, we will write-off the loan through a charge to our current expected credit loss reserve based on the present value of expected future cash flows or the fair value of the collateral less costs to sell, if repayment is expected solely from the collateral. Significant judgment is required in determining impairment and in estimating the resulting credit loss reserve, and actual losses, if any, could materially differ from those estimates. For additional information on our General and Specific CECL Allowance please refer to Footnote 3—"Loans Portfolio—Current Expected Credit Losses”. Real Estate Owned (and Associated Debt) We may assume legal title or physical possession of the underlying collateral of a defaulted loan through foreclosure. If we intend to hold, operate or develop the property for a period of at least 12 months, the asset is classified as real estate owned, net. If we intend to market a property for sale in the near subsequent term, the asset is classified as real estate held for sale. Real estate owned is initially recorded at estimated fair value and is subsequently presented net of accumulated depreciation. Depreciation is computed using a straight-line method over the estimated useful lives. Real estate assets are evaluated for indicators of impairment on a quarterly basis. Factors that we may consider in our impairment analysis include, among others: (1) significant underperformance relative to historical or anticipated operating results; (2) significant negative industry or economic trends; (3) costs necessary to extend the life or improve the real estate asset; (4) significant increase in competition; and (5) ability to hold and dispose of the real estate asset in the ordinary course of business. A real estate asset is considered impaired when the sum of estimated future undiscounted cash flows expected to be generated by the real estate asset over the estimated remaining holding period is less than the carrying amount of such real estate asset. Cash flows include operating cash flows net of anticipated capital proceeds generated by the real estate asset. If the sum of such estimated cash flows are less than the fair value of the real estate, an impairment charge is recorded equal to the excess of the carrying value of the real estate asset over the fair value. When determining the fair value of a real estate asset, we make certain assumptions including, but not limited to, consideration of projected operating cash flows, comparable selling prices and projected cash flows from the eventual disposition of the real estate asset based upon our estimate of a capitalization rate and discount rate. Debt assumed in an acquisition/foreclosure of real estate is recorded at its estimated fair value at the time of the acquisition. Subsequently, debt related to real estate owned, net is held net of principal repayments and any unamortized debt issuance costs. Other than amounts guaranteed by us, debt related to real estate owned is non-recourse to us. Other Assets Other assets include interest receivable, miscellaneous receivables, prepaid expenses, deferred tax asset (net of any valuation allowance), deposits funded relating to unclosed transactions, deferred financing costs and repurchased shares not yet settled. Other Liabilities Other liabilities include interest payable, accounts payable, accrued expenses, reserves held for loans receivable and deposits. Revenue Recognition Interest income from loans receivable is recorded on the accrual basis based on the outstanding principal amount and the contractual terms of the loans. Recognition of fees, premiums, discounts and direct costs associated with these investments is deferred until the loan is advanced and is then amortized or accreted into interest income over the term of the loan as an adjustment to yield using the effective interest method based on expected cash flows through the expected recovery period. Income accrual may be suspended for loans when we determine that the payment of income and principal is no longer probable. Factors considered when making this determination include our assessment of the underlying collateral value, delinquency in excess of 90 days, and overall market conditions. While on non-accrual status, based on our estimation as to collectability of principal, loans are either accounted for on a cash basis, where interest income is recognized only upon actual receipt of cash, or on a cost-recovery basis, where all cash receipts reduce a loan's carrying value. If and when a loan is brought back into compliance with its contractual terms, and our Manager has determined that the borrower has demonstrated an ability and willingness to continue to make contractually required payments related to the loan, we resume accrual of interest. Revenue from real estate owned represents revenue associated with the operations of hotel properties classified as real estate owned. Revenue from the operations of the hotel properties is recognized when guestrooms are occupied, services have been rendered or fees have been earned. Revenues are recorded net of any discounts and sales and other taxes collected from customers. Revenues consist of room sales, food and beverage sales and other hotel revenues. Reportable Segments We evaluate the operating performance of our investments as a whole. We previously determined that we had two operating segments and one reporting segment as a result of the foreclosure of the hotel portfolio on February 8, 2021. During the three months ended March 31, 2022, we had a change in our Chief Operating Decision Maker (CODM) who determined that we evaluate the operating performance of our investments as a whole and make operating decisions accordingly. Therefore, we have one operating segment and one reporting segment, with activities related to investing in income-producing loans collateralized by institutional quality commercial real estate. This change has been applied retrospectively to all periods presented. Reclassifications Certain Recent Accounting Guidance On March 31, 2022, the FASB issued ASU 2022-02, “Financial Instruments – Credit Losses (Topic 326), Troubled Debt restructurings and Vintage Disclosures”, (“ASU 2022-02”). The standard eliminates the recognition and measurement guidance for troubled debt restructurings (“TDRs”) for creditors that have adopted ASU 2016-13 Financial Instruments – Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments, (CECL). In addition to eliminating the TDR accounting guidance, ASU 2022-02 changes existing disclosure requirements and introduces new disclosures related to certain modifications of instruments with borrowers experiencing financial difficulty. The standard is effective for periods beginning after December 15, 2022, with early adoption permitted. We are currently evaluating the impact ASU 2022-02 will have on our consolidated financial statements. The FASB issued ASU 2019-12, Income Taxes (Topic 740), (“ASU 2019-12”). ASU 2019-12 simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. ASU 2019-12 also improves the consistent application of, and simplifies, GAAP for other areas of Topic 740 by clarifying and amending existing guidance. The standard is effective for financial statements issued for fiscal years beginning after December 15, 2021, with early adoption permitted. We adopted ASU 2019-12 on January 1, 2022 and the adoption of ASU 2019-12 did not have a material impact on our consolidated financial statements. The FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, (“ASU 2020-04”). ASU 2020-04 provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. ASU 2020-04 is effective upon issuance of ASU 2020-04 for contract modifications and hedging relationships on a prospective basis. We have not adopted any of the optional expedients or exceptions through March 31, 2022, but will continue to evaluate the possible adoption of any such expedients or exceptions during the effective period as circumstances evolve. |
Loans Portfolio
Loans Portfolio | 3 Months Ended |
Mar. 31, 2022 | |
Receivables [Abstract] | |
Loans Portfolio | Note 3. Loans Portfolio Loans receivable Our loans receivable portfolio as of March 31, 2022 was comprised of the following loans ($ in thousands, except for number of loans): Number of Loans Loan Commitment (5) Unpaid Principal Balance Carrying Value Weighted Average Spread (2) Weighted Average Interest Rate (4) Loans receivable held-for-investment: Variable: Senior loans (1,3) 64 $ 8,219,356 $ 6,763,623 $ 6,720,583 + 4.02% % 5.12 % Subordinate loans 3 138,085 134,770 135,258 + 10.59% % 11.61 % 67 8,357,441 6,898,393 6,855,841 + 4.15% % 5.25 % Fixed: Senior loans (1) 3 $ 56,612 $ 56,612 $ 56,770 N/A 10.41 % Subordinate loans 2 125,927 125,927 125,635 N/A 8.49 % 5 182,539 182,539 182,405 9.09 % Total/Weighted Average 72 $ 8,539,980 $ 7,080,932 $ 7,038,246 N/A 5.35 % Current expected credit loss reserve (65,608 ) Loans receivable held-for-investment, net $ 6,972,638 (1) Senior loans include senior mortgages and similar loans, including related contiguous subordinate loans (if any), and pari passu participations in senior mortgage loans. (2) The weighted average spread is expressed as a spread over the relevant floating benchmark rates. One-month LIBOR as of March 31, 2022 was 0.45%. One-month SOFR as of March 31, 2022 was 0.30%. Weighted average is based on outstanding principal as of March 31, 2022. (3) Includes a fixed rate loan with an outstanding principal balance of $37.9 million and a loan commitment of $39.7 million at March 31, 2022, which shares the same collateral as floating rate loans with an outstanding principal balance of $31.8 million and a loan commitment of $32.6 million at March 31, 2022. (4) Reflects the weighted average interest rate based on the applicable floating benchmark rate (if applicable), including LIBOR/SOFR floors (if applicable). Weighted average is based on outstanding principal as of March 31, 2022 and includes loans on non-accrual status. (5) Loan commitment represents principal outstanding plus remaining unfunded loan commitments. Our loans receivable portfolio as of December 31, 2021 was comprised of the following loans ($ in thousands, except for number of loans): Number of Loans Loan Commitment (5) Unpaid Principal Balance Carrying Value Weighted Average Spread (2) Weighted Average Interest Rate (4) Loans receivable held-for-investment: Variable: Senior loans (1,3) 51 $ 7,163,032 $ 6,119,619 $ 6,085,351 + 4.06% % 5.16 % Subordinate loans 3 137,079 133,119 133,552 + 10.38% % 11.37 % 54 7,300,111 6,252,738 6,218,903 + 4.19% % 5.29 % Fixed: Senior loans (1) 3 $ 62,573 $ 62,573 $ 62,782 N/A 10.09 % Subordinate loans 2 125,927 125,927 125,620 N/A 8.49 % 5 188,500 188,500 188,402 9.02 % Total/Weighted Average 59 $ 7,488,611 $ 6,441,238 $ 6,407,305 N/A 5.40 % Current expected credit loss reserve (67,010 ) Loans receivable held-for-investment, net $ 6,340,295 (1) Senior loans include senior mortgages and similar loans, including related contiguous subordinate loans (if any), and pari passu participations in senior mortgage loans. (2) The weighted average spread is expressed as a spread over the relevant floating benchmark rates. One-month LIBOR as of December 31, 2021 was 0.10%. Weighted average is based on outstanding principal as of December 31, 2021. (3) Includes a fixed rate loan with an outstanding principal balance of $33.5 million and a loan commitment of $39.7 million as of December 31, 2021, which shares the same collateral as floating rate loans with an outstanding principal balance of $103.1 million and a loan commitment of $104.4 million at December 31, 2021. (4) Reflects the weighted average interest rate based on the applicable floating benchmark rate (if applicable), including LIBOR floors (if applicable). Weighted average is based on outstanding principal as of December 31, 2021 and includes loans on non-accrual status. (5) Loan commitment represents principal outstanding plus unfunded loan commitments. Certain loans receivable held by us include LIBOR/SOFR floors, which establish the minimum interest rate a borrower may pay on a loan. The weighted average LIBOR/SOFR floor in place based on unpaid principal balance on floating rate loans is 0.95% as of March 31, 2022. The following table presents the range of LIBOR/SOFR floors held in our loan portfolio as of March 31, 2022 based on outstanding principal ($ in thousands): One-month LIBOR/SOFR Floor Range Unpaid Principal Balance % of Total Cumulative % 2.00% - 2.50% 1,197,145 17 % 17 % 1.50% - 1.99% 1,371,794 20 % 37 % 1.00% - 1.49% 743,393 10 % 47 % 0.50% - 0.99% 216,114 3 % 50 % < 0.50% 2,418,783 34 % 84 % No floor 913,270 13 % 97 % Total Floating Rate Loans 6,860,499 Total Fixed Rate Loans 220,433 3 % 100 % Total Loans $ 7,080,932 The following table presents the carrying value and significant characteristics of our loans receivable on non-accrual status as of March 31, 2022 ($ in thousands): Origination Date Initial Maturity Date Date Through Which Interest Collected Risk Rating Carrying Value Unpaid Principal Balance Specific CECL Reserve Net Carrying Value Interest Recognition Method (1) 5/5/2017 1/1/2023 4/1/2022 5 $ 8,599 $ 8,599 $ (200 ) $ 8,399 Cost Recovery Total current 8,599 8,599 (200 ) 8,399 9/21/2018 (2) 10/1/2020 2/1/2020 4 116,211 116,020 - 116,211 Cash Basis 3/29/2018 1/26/2021 7/9/2020 4 77,075 76,585 - 77,075 Cash Basis 8/2/2019 10/30/2021 11/1/2021 4 67,000 67,000 - 67,000 Cash Basis 7/1/2019 12/30/2020 7/1/2020 5 15,000 15,000 (6,000 ) 9,000 Cost Recovery Total delinquent (3) 275,286 274,605 (6,000 ) 269,286 Total non-accrual (4) $ 283,885 $ 283,204 $ (6,200 ) $ 277,685 Carrying value of associated financings $ (81,421 ) Net carrying value $ 196,264 (1) No interest income was recognized on these loans for the three months ended March 31, 2022. (2) Subsequent to quarter end, this loan was fully satisfied. Loans classified as non-accrual and delinquent on debt service after this repayment represented 2.2% of the total loan portfolio, based on unpaid principal balance. See Note 13 – Subsequent Events for further details. (3) Excludes one additional loan with a carrying value of $105.3 million that was over 90 days delinquent on March 31, 2022 which remains on accrual status. A portion of interest was collected subsequent to March 31, 2022, however the loan remains in maturity default. (4) Loans classified as non-accrual and delinquent on debt service represented 3.8% of the total loan portfolio at March 31, 2022, based on unpaid principal balance. The following table presents the carrying value and significant characteristics of our loans receivable on non-accrual status as of December 31, 2021 ($ in thousands): Origination Date Initial Maturity Date Date Through Which Interest Collected Risk Rating Carrying Value Unpaid Principal Balance Specific CECL Reserve Net Carrying Value Interest Recognition Method 5/5/2017 1/1/2023 12/1/2021 5 $ 11,533 $ 11,533 $ (333 ) $ 11,200 Cost Recovery 7/10/2018 (1) 12/10/2023 12/1/2021 4 77,530 81,380 - 77,530 Cash Basis Total current 89,063 92,913 (333 ) 88,730 8/2/2019 10/30/2021 11/1/2021 4 67,000 67,000 - 67,000 Cash Basis 9/21/2018 10/1/2020 2/1/2020 4 116,211 116,020 - 116,211 Cash Basis 3/29/2018 1/26/2021 7/9/2020 4 76,069 75,579 - 76,069 Cash Basis 7/1/2019 12/30/2020 7/1/2020 5 15,000 15,000 (6,000 ) 9,000 Cost Recovery Total delinquent 274,280 273,599 (6,000 ) 268,280 Total non-accrual (2) $ 363,343 $ 366,512 $ (6,333 ) $ 357,010 Carrying value of associated financings $ (122,450 ) Net carrying value $ 234,560 (1) During the three months ended March 31, 2022, $0.7 million of income was recognized related to this loan. Prior to March 31, 2022, this loan was returned to accrual basis in accordance with our policy. (2) Loans classified as non-accrual and delinquent on debt service represented 4.1% of the total loan portfolio at December 31, 2021, based on unpaid principal balance. Activity relating to the loans receivable portfolio for the three months ended March 31, 2022 ($ in thousands): Unpaid Principal Balance Deferred Fees Specific CECL Allowance Carrying Value (1) Balance at December 31, 2021 $ 6,441,238 $ (33,933 ) $ (6,333 ) $ 6,400,972 Initial funding of new loan originations and acquisitions 684,789 — — 684,789 Advances on existing loans 109,979 — — 109,979 Non-cash advances in lieu of interest 13,507 — — 13,507 Origination fees, extension fees and exit fees — (13,057 ) — (13,057 ) Repayments of loans receivable (157,836 ) — — (157,836 ) Repayments of non-cash advances in lieu of interest (10,745 ) — — (10,745 ) Accretion of fees — 4,304 — 4,304 Specific CECL Allowance — — 133 133 Balance at March 31, 2022 $ 7,080,932 $ (42,686 ) $ (6,200 ) $ 7,032,046 General CECL Allowance $ (59,408 ) Carrying Value $ 6,972,638 (1) Balance at December 31, 2021 does not include general CECL allowance. Interests in loans receivable held-for-investment Our interests in loans receivable portfolio as of March 31, 2022 was comprised of the following loan ($ in thousands): Number of Loans Loan Commitment (3) Unpaid Principal Balance Carrying Value Stated Rate (2) Interest Rate (4) Senior loans (1) 1 $ 174,923 $ 152,841 $ 153,278 L + 4.25% 5.50% Current expected credit loss reserve (42 ) Interests in loans receivable held-for-investment, net $ 153,236 (1) Senior loans include senior mortgages and similar loans, including related contiguous subordinate loans (if any), and pari passu participations in senior mortgage loans. (2) One-month LIBOR as of March 31, 2022 was 0.45%. (3) Loan commitment represents principal outstanding plus unfunded loan commitments. (4) Reflects the interest rate based on the applicable floating benchmark rate (if applicable), including LIBOR/SOFR floors (if applicable). Our interests in loans receivable portfolio as of December 31, 2021 was comprised of the following loan ($ in thousands): Number of Loans Loan Commitment (3) Unpaid Principal Balance Carrying Value Stated Rate (2) Interest Rate (4) Senior loans (1) 1 $ 200,727 $ 161,566 $ 161,864 L + 4.25% 5.50% Current expected credit loss reserve (14 ) Interests in loans receivable held-for-investment, net $ 161,850 (1) Senior loans include senior mortgages and similar loans, including related contiguous subordinate loans (if any), and pari passu participations in senior mortgage loans. (2) One-month LIBOR as of December 31, 2021 was 0.10%. (3) Loan commitment represents principal outstanding plus unfunded loan commitments. (4) Reflects the interest rate based on the applicable floating benchmark rate (if applicable), including LIBOR/SOFR floors (if applicable). Activity relating to the interests in loans receivable portfolio for the three months ended March 31, 2022 ($ in thousands): Unpaid Principal Balance Deferred Fees Carrying Value (1) Balance at December 31, 2021 $ 161,566 $ 298 $ 161,864 Advances on existing interests in loans receivable 14,653 — 14,653 Non-cash advances in lieu of interest 2,427 — 2,427 Origination fees, extension fees and exit fees — (65 ) (65 ) Repayments of interests in loans receivable (23,971 ) — (23,971 ) Repayment of non-cash advances in lieu of interest (1,834 ) — (1,834 ) Accretion of origination fees, net — 204 204 Balance at March 31, 2022 $ 152,841 $ 437 $ 153,278 General CECL Allowance (42 ) Carrying Value $ 153,236 (1) Balance at December 31, 2021 does not include general CECL allowance. The following table details overall statistics for our loans receivable and interests in loans receivable portfolio ($ in thousands): Loans Receivable Interests in Loans Receivable March 31, 2022 December 31, 2021 March 31, 2022 December 31, 2021 Weighted average yield to maturity 5.6 % 5.6 % 5.5 % 6.7 % Weighted average term to initial maturity 1.9 years 1.8 years 0.1 year 0.1 year Weighted average term to fully extended maturity 3.4 years 3.3 years 1.4 years 1.6 years Concentration of Risk The following table presents our loans receivable and interests in loans receivable portfolio by loan type, as well as property type and geographic location of the properties collateralizing these loans as of March 31, 2022 and December 31, 2021 ($ in thousands): March 31, 2022 December 31, 2021 Loan Type (1) Carrying Value Percentage Carrying Value Percentage Senior loans (1) $ 6,930,631 96 % $ 6,309,997 96 % Subordinate loans 260,893 4 % 259,172 4 % $ 7,191,524 100 % $ 6,569,169 100 % Current expected credit loss reserve $ (65,650 ) $ (67,024 ) $ 7,125,874 $ 6,502,145 Property Type Carrying Value Percentage Carrying Value Percentage Office $ 1,077,767 15 % $ 1,113,805 17 % Mixed-use 751,363 10 % 734,613 11 % Hospitality 1,233,693 17 % 1,176,842 18 % Land 633,588 9 % 631,713 10 % Multifamily 2,652,615 37 % 1,986,628 30 % For Sale Condo 614,752 9 % 710,660 11 % Other 227,746 3 % 214,908 3 % $ 7,191,524 100 % $ 6,569,169 100 % Current expected credit loss reserve $ (65,650 ) $ (67,024 ) $ 7,125,874 $ 6,502,145 Geographic Location Carrying Value Percentage Carrying Value Percentage United States Northeast $ 2,625,860 37 % $ 2,734,550 41 % Mid Atlantic 1,238,460 17 % 1,235,527 19 % Midwest 283,722 4 % 309,298 5 % Southeast 952,316 13 % 836,904 13 % Southwest 448,796 6 % 269,461 4 % West 1,618,771 23 % 1,156,896 18 % Other 23,599 0 % 26,533 0 % $ 7,191,524 100 % $ 6,569,169 100 % Current expected credit loss reserve $ (65,650 ) $ (67,024 ) $ 7,125,874 $ 6,502,145 (1) Senior loans include senior mortgages and similar credit quality loans, including related contiguous subordinate loans and pari passu participations in senior mortgage loans. Interest Income and Accretion The following table summarizes our interest and accretion income from loans receivable held-for-investment and from interests in loans receivable held-for-investment, and from interest on cash balances for the three months ended March 31, 2022 and 2021 ($ in thousands): Three Months Ended March 31, 2022 March 31, 2021 Coupon interest $ 86,186 $ 99,754 Accretion of fees 4,508 6,049 Total interest and related income $ 90,694 $ 105,803 Loan Risk Ratings As further described in Note 2 – Summary of Significant Accounting Policies, we evaluate the credit quality of our loan portfolio on a quarterly basis. In conjunction with our quarterly loan portfolio review, we assess the risk factors of each loan and assign a risk rating based on several factors. Factors considered in the assessment include, but are not limited to, current loan-to-value, debt yield, structure, cash flow volatility, exit plan, current market environment and sponsorship level. Loans are rated “1” (less risk) through “5” (greater risk), which ratings are defined in Note 2 – Summary of Significant Accounting Policies. The following table allocates the principal balance and carrying value of the loans receivable and interests in loans receivable based on our internal risk ratings ($ in thousands): March 31, 2022 Risk Rating Number of Loans Unpaid Principal Balance Carrying Value % of Total of Unpaid Principal Balance 1 2 $ 188,562 $ 188,990 3% 2 6 661,452 657,000 9% 3 52 5,073,326 5,036,859 70% 4 11 1,286,834 1,285,076 18% 5 2 23,599 23,599 0% 73 $ 7,233,773 $ 7,191,524 Current expected credit loss reserve (65,650 ) $ 7,125,874 December 31, 2021 Risk Rating Number of Loans Unpaid Principal Balance Carrying Value % of Total of Unpaid Principal Balance 1 1 $ 35,721 $ 35,699 1% 2 6 705,886 703,714 10% 3 42 4,678,785 4,649,076 71% 4 9 1,155,879 1,154,147 18% 5 2 26,533 26,533 0% 60 $ 6,602,804 $ 6,569,169 Current expected credit loss reserve (67,024 ) $ 6,502,145 As of March 31, 2022 and December 31, 2021, the average risk rating of our portfolio was 3.0 and 3.1, respectively, weighted by unpaid principal balance. Current Expected Credit Losses The current expected credit loss reserve required under GAAP reflects our current estimate of potential credit losses related to loans receivable, interests in loans receivable, accrued interest receivable and unfunded loan commitments. See Note 2 for further discussion of our allowance for loan losses. In December 2021, we received principal repayments of $81.7 million on a senior loan with an outstanding principal balance of $95.0 million, and a maturity date of May 31, 2021, and recorded a principal charge-off of $1.8 million. Following the repayment, the maturity date of the loan was extended to January 1, 2023. As of March 31, 2022 and December 31, 2021, the loan had a specific loan loss allowance of $0.2 million and $0.3 million, respectively, which represents additional collectible interest through the maturity date as the loan remains on non-accrual status. During three months ended March 31, 2022, we recorded a net provision of $2.1 million in the allowance for credit losses, thus increasing the total allowance for loan losses to $75.6 million as of March 31, 2022. The increase was primarily attributable to the increase in size of the portfolio and unfunded loan commitments. The following table illustrates the quarterly changes in the current expected credit loss reserve for the three months ended March 31, 2022 and 2021 ($ in thousands): General CECL Allowance Specific CECL Allowance (1) Loans receivable held-for-investment Interests in loans receivable held-for-investment Accrued interest receivable Unfunded loan commitments (2) Total Total current expected credit loss reserve, December 31, 2020 $ 6,000 $ - $ - $ - $ - $ 6,000 Initial CECL allowance, January 1, 2021 - 64,274 406 357 13,214 78,251 Increase (reversal) in current credit loss reserve - 1,547 (141 ) (14 ) (1,577 ) (185 ) Total current expected credit loss reserve, March 31, 2021 $ 6,000 $ 65,821 $ 265 $ 343 $ 11,637 $ 84,066 Total current expected credit loss reserve, December 31, 2021 $ 6,333 $ 60,677 $ 14 $ 218 $ 6,286 $ 73,528 Increase (reversal) in current credit loss reserve (133 ) (1,269 ) 28 (218 ) 3,694 2,102 Total current expected credit loss reserve, March 31, 2022 $ 6,200 $ 59,408 $ 42 $ - $ 9,980 $ 75,630 Percent of Unpaid Principal Balance at March 31, 2022 1.0 % (1) As of December 31, 2020, amounts represent specific loan loss provisions recorded on assets before the adoption of ASU 2016-13. After the adoption of ASU 2016-13 on January 1, 2021, amounts represent Specific CECL allowance. (2) The CECL allowance for unfunded commitments is included in other liabilities on the consolidated balance sheets. Our primary credit quality indicator is our internal risk ratings, which are further discussed above. The following table presents the amortized cost basis of our loans receivable and interest in loans receivable as of March 31, 2022 by year of origination and risk rating ($ in thousands): Amortized Cost Basis by Origination Year Risk Rating Number of Loans Amortized Cost Basis 2022 2021 2020 2019 2018 2017 1 2 $ 188,990 $ - $ - $ - $ - $ 188,990 $ - 2 6 657,000 - 555,869 - - 75,191 25,940 3 52 5,036,859 680,412 1,781,663 63,175 1,982,302 431,881 97,426 4 11 1,285,076 - - 198,788 67,000 1,019,288 - 5 2 23,599 - - - 15,000 - 8,599 73 $ 7,191,524 $ 680,412 $ 2,337,532 $ 261,963 $ 2,064,302 $ 1,715,350 $ 131,965 |
Real Estate Owned, net
Real Estate Owned, net | 3 Months Ended |
Mar. 31, 2022 | |
Real Estate Owned Disclosure Of Detailed Components [Abstract] | |
Real Estate Owned, net | Note On February 8, 2021, we acquired legal title to a portfolio of hotel properties located in New York, NY through a foreclosure. Prior to February 8, 2021, the hotel portfolio represented the collateral for a $103.9 million mezzanine loan held by us. The loan was in default as a result of the borrower failing to pay debt service. A $300.0 million securitized senior mortgage held by a third party was in default as well. The securitized senior mortgage is non-recourse to us. We recorded a gain of $1.4 million resulting from the foreclosure of the loan, which was based upon the estimated fair value of the hotel properties as determined by a third-party appraisal. The fair value of $414.0 million was determined using discount rates ranging from 8.50% to 8.75% and a terminal capitalization rate of 6.00%. On June 2, 2021, terms of the securitized senior mortgage were modified to include an extension of the maturity date to February 9, 2024, a principal repayment of $10.0 million, and the payment of $7.6 million of fees and modification costs, which included among other items, $6.3 million of interest, $1.1 million of general and administrative expenses, and $0.2 million of debt issuance costs. The following table presents additional detail related to our real estate owned, net as of March 31, 2022 and December 31, 2021 ($ in thousands): March 31, 2022 December 31, 2021 Land $ 123,100 $ 123,100 Building 284,400 284,400 Furniture, fixtures and equipment 6,500 6,500 Real estate assets 414,000 414,000 Less: accumulated depreciation (9,053 ) (7,113 ) Real estate owned, net $ 404,947 $ 406,887 |
Repurchase Agreements, Loan Par
Repurchase Agreements, Loan Participations Sold, Net, Notes Payable, Net, Secured Term Loan, Net and Debt Related to Real Estate Owned, Net | 3 Months Ended |
Mar. 31, 2022 | |
Securities Loaned And Securities Sold Under Agreement To Repurchase Gross Including Not Subject To Master Netting Arrangement [Abstract] | |
Repurchase Agreements, Loan Participations Sold, Notes Payable and Secured Term Loan, Net | Note As of March 31, 2022 and December 31, 2021, we financed certain of our loans receivables using repurchase agreements, the sale of loan participations, and notes payable. The financings bear interest at a rate equal to LIBOR/SOFR plus a credit spread or at a fixed rate. Financing agreements generally contain covenants that include certain financial requirements, including maintenance of minimum liquidity, minimum tangible net worth, maximum debt to tangible net worth ratio, and minimum debt service coverage ratio as defined in agreements. The following table summarizes our portfolio financings as of March 31, 2022 ($ in thousands): March 31, 2022 December 31, 2021 Capacity Borrowing Outstanding Weighted Average Spread (1) Capacity Borrowing Outstanding Weighted Average Spread (1) Repurchase agreements $ 4,765,000 $ 3,798,423 + 2.00 % $ 4,065,000 $ 3,274,508 + 2.00 % Repurchase agreements - Side Car 271,171 221,487 + 4.51 % 271,171 215,003 + 4.50 % Loan participations sold 168,322 168,322 + 3.75 % 168,322 168,322 + 3.79 % Notes payable 277,950 146,089 + 3.35 % 48,000 48,000 + 4.00 % Secured Term Loan 760,810 760,810 + 4.50 % 762,717 762,717 + 4.50 % Debt related to real estate owned 290,000 290,000 + 2.78 % 290,000 290,000 + 2.78 % Total / weighted average $ 6,533,253 $ 5,385,131 + 2.59 % $ 5,605,210 $ 4,758,550 + 2.65 % (1) Weighted average spread over the applicable benchmark rate is based on unpaid principal balance. One-month LIBOR as of March 31, 2022 was 0.45%. One-month SOFR at March 31, 2022 was 0.30%. Repurchase Agreements The following table summarizes our repurchase agreements by lender as of March 31, 2022 ($ in thousands): Lender Initial Maturity Fully Extended Maturity (1) Maximum Capacity Borrowing Outstanding Undrawn Capacity JP Morgan Chase Bank, N.A. - Main Pool 6/29/2025 6/29/2027 $ 1,500,000 $ 1,305,718 $ 194,282 JP Morgan Chase Bank, N.A. - Side Car (2) 5/27/2023 5/27/2024 271,171 221,487 49,684 Morgan Stanley Bank, N.A. (3) 1/26/2023 1/26/2025 1,000,000 1,000,000 - Goldman Sachs Bank USA (4) 5/31/2022 5/31/2023 750,000 428,543 321,457 Wells Fargo Bank, N.A. 9/29/2023 9/29/2026 750,000 655,195 94,805 Barclays Bank PLC 12/20/2022 12/20/2025 500,000 186,384 313,616 Deutsche Bank AG, New York Branch 6/26/2022 6/26/2023 265,000 222,583 42,417 Total $ 5,036,171 $ 4,019,910 $ 1,016,261 (1) Facility maturity dates may be extended based on certain conditions being met. (2) This financing has a LIBOR floor of 0.25% for financings with a reference rate of LIBOR and a SOFR floor of 0.15% for financings with a reference rate of SOFR. (3) One asset on this financing has a SOFR floor of 0.90% and another of 0.15%. (4) This financing has a LIBOR floor of 0.35% and a SOFR floor of 0.25% with respect to certain transactions where the initial financing date was before May 27, 2021. The following table summarizes our repurchase agreements by lender as of December 31, 2021 ($ in thousands): Lender Initial Maturity Fully Extended Maturity (1) Maximum Capacity Borrowing Outstanding Undrawn Capacity JP Morgan Chase Bank, N.A. - Main Pool (2) 6/29/2025 6/29/2027 $ 1,250,000 $ 1,173,280 $ 76,720 JP Morgan Chase Bank, N.A. - Side Car (3) 5/27/2023 5/27/2024 271,171 215,003 56,168 Morgan Stanley Bank, N.A. (4) 1/26/2023 1/26/2024 1,000,000 1,000,000 - Goldman Sachs Bank USA (5) 5/31/2022 5/31/2023 750,000 410,551 339,449 Barclays Bank PLC 12/20/2022 12/20/2025 500,000 193,884 306,116 Deutsche Bank AG, New York Branch 6/26/2022 6/26/2023 265,000 211,372 53,628 Wells Fargo Bank, N.A. 9/29/2023 9/29/2026 300,000 285,421 14,579 Total $ 4,336,171 $ 3,489,511 $ 846,660 (1) Facility maturity dates may be extended based on certain conditions being met. (2) On January 14, 2022, the facility capacity was increased to $1.5 billion. (3) This financing has a LIBOR floor of 0.25% (4) One asset on this financing has a LIBOR floor of 1.00% and another of 0.25%. On January 25, 2022, the reference rate on this facility was changed from LIBOR to SOFR, and the fully extended maturity was extended to January 26, 2025. (5) This financing has a LIBOR floor of 0.35% with respect to transactions where the initial financing date was before May 27, 2021. Liabilities under our repurchase agreements as of March 31, 2022 are summarized as follows ($ in thousands): Lender Weighted Average Term (1) Borrowing Outstanding Carrying Value Carrying Value of Collateral JP Morgan Chase Bank, N.A. - Main Pool 2.1 $ 1,305,718 $ 1,305,718 $ 1,877,691 JP Morgan Chase Bank, N.A. - Side Car 0.8 221,487 221,487 443,645 Morgan Stanley Bank, N.A. 2.0 1,000,000 1,000,000 1,590,552 Goldman Sachs Bank USA 1.4 428,543 428,543 612,301 Wells Fargo Bank, N.A. 2.8 655,195 655,195 832,876 Barclays Bank PLC 1.7 186,384 186,384 284,166 Deutsche Bank AG, New York Branch 2.0 222,583 222,583 341,680 Total/Weighted Average 2.0 $ 4,019,910 $ 4,019,910 $ 5,982,911 (1) The weighted average term (years) is determined based on the contractual maturity date of the corresponding loans collateralizing each facility. Weighted average is based on borrowing outstanding as of March 31, 2022. Liabilities under our repurchase agreements as of December 31, 2021 are summarized as follows ($ in thousands): Lender Weighted Average Term (1) Borrowing Outstanding Carrying Value Carrying Value of Collateral JP Morgan Chase Bank, N.A. - Main Pool 1.6 $ 1,173,280 $ 1,173,280 $ 1,626,719 JP Morgan Chase Bank, N.A. - Side Car 0.9 215,003 215,003 436,325 Morgan Stanley Bank, N.A. 2.4 1,000,000 1,000,000 1,709,758 Goldman Sachs Bank USA 1.3 410,551 410,551 589,825 Barclays Bank PLC 1.4 193,884 193,884 283,716 Deutsche Bank AG, New York Branch 2.3 211,372 211,372 327,671 Wells Fargo Bank, N.A. 2.8 285,421 285,421 362,742 Total/Weighted Average 1.9 $ 3,489,511 $ 3,489,511 $ 5,336,756 (1) The weighted average term (years) is determined based on the contractual maturity date of the corresponding loans collateralizing each facility. Weighted average is based on borrowing outstanding as of December 31, 2021. As part of our repurchase agreements, we are required to comply with certain financial covenants on an ongoing basis. As of March 31, 2022 and December 31, 2021, we were in compliance with all covenants under our repurchase agreements. The repurchase facilities are partially recourse to us. The maximum guaranty under the repurchase agreements that we would be responsible for as of March 31, 2022 and December 31, 2021 was $1.2 billion and $944.0 million, respectively. Loan Participations Sold Our loan participations sold as of March 31, 2022 are summarized as follows ($ in thousands): Contractual Maturity Date Maximum Extension Date Borrowing Outstanding Carrying Value Carrying Value of Collateral Variable: (1 ) 8/1/2022 8/1/2023 148,322 148,213 291,063 Fixed: 12/31/2024 12/31/2025 20,000 19,662 132,904 Total/Weighted Average $ 168,322 $ 167,875 $ 423,967 (1) This financing has a LIBOR floor of 1.85% Our loan participations sold as of December 31, 2021 are summarized as follows ($ in thousands): Contractual Maturity Date Maximum Extension Date Borrowing Outstanding Carrying Value Carrying Value of Collateral Variable: (1 ) 8/1/2022 8/1/2023 148,322 148,133 290,783 Fixed: 12/31/2024 12/31/2025 20,000 19,611 130,061 Total/Weighted Average $ 168,322 $ 167,744 $ 420,844 (1) This financing has a LIBOR floor of 1.85% Notes Payable Our notes payable as of March 31, 2022 are summarized as follows ($ in thousands): Contractual Maturity Date Maximum Extension Date Borrowing Outstanding Carrying Value Carrying Value of Collateral (1) (2 ) 7/5/2022 1/4/2023 $ 48,000 $ 47,921 $ 117,301 (3 ) 12/31/2024 12/31/2025 94,322 92,840 132,904 (4 ) 2/2/2026 2/2/2027 3,767 2,766 3,781 Total/Weighted Average (1) $ 146,089 $ 143,527 $ 253,986 (1) Includes all cash reserve balances held by the servicer. (2) This financing has a LIBOR floor of 2.43%. This financing was fully satisfied in April 2022. (3) This financing has a SOFR floor of 1.75%. (4) This financing has a SOFR floor of 0.32%. Our notes payable as of December 31, 2021 are summarized as follows ($ in thousands): Contractual Maturity Date Maximum Extension Date Borrowing Outstanding Carrying Value Carrying Value of Collateral (1) (2 ) 1/4/2022 1/4/2022 $ 48,000 $ 48,000 $ 116,512 (1) Includes all reserve balances held by servicer. (2) In January 2022, the initial maturity was extended to July 5, 2022 and the maximum maturity date was extended to January 4, 2023. This financing has a LIBOR floor of 2.43%. Secured Term Loan, Net On August 9, 2019, we entered into a $450.0 million secured term loan. On December 1, 2020, the secured term loan was modified to increase the aggregate principal amount by $325.0 million, increase the interest rate, and to increase the quarterly amortization payment. On December 2, 2021, we entered into a modification of our secured term loan which reduced the interest rate to the greater of (i) 1-month SOFR plus a 0.10% credit spread adjustment, and (ii) 0.50%, plus a credit spread of 4.50%. The secured term loan as of March 31, 2022 is summarized as follows ($ in thousands): Contractual Stated Borrowing Maturity Date Rate (1) Interest Rate Outstanding Carrying Value 8/9/2026 S + 4.50% 5.00% $ 760,810 $ 738,928 (1) One-month SOFR at March 31, 2022 was 0.30% The secured term loan has a floor equal to the greater of one-month SOFR plus 0.10% and 0.50%. The se cured term loan as of December 31, 2021 is summarized as follows ($ in thousands): Contractual Stated Borrowing Maturity Date Rate (1) Interest Rate Outstanding Carrying Value 8/9/2026 S + 4.50% 5.00% $ 762,717 $ 739,762 (1) One-month SOFR at December 31, 2021 was 0.05%. Following the modification on December 1, 2021, the secured term loan has a floor equal to the greater of one-month SOFR plus 0.10% and 0.50%. The secured term loan is partially amortizing, with principal payments of $1.9 million due in quarterly installments. Debt Related to Real Estate Owned, Net On February 8, 2021 we assumed a $300.0 million securitized senior mortgage in connection with a UCC foreclosure on a portfolio of seven limited service hotels. On June 2, 2021, we entered into an agreement to amend the terms of the securitized senior mortgage which included an extension of the maturity date to February 9, 2024, a principal repayment of $10.0 million, and the payment of $7.6 million of fees and modification costs, which included among other items, $ million of interest expense, $ million of general and administrative expense s , and $ 0.2 million of debt issuance costs. Our debt related to real estate owned as of March 31, 2022 is summarized as follows ($ in thousands): Contractual Stated Borrowing Maturity Date Rate (1) Interest Rate Outstanding Carrying Value February 9, 2024 L + 2.78% 3.53 % $ 290,000 $ 289,829 (1) One-month LIBOR at March 31, 2022 was 0.45%. This financing has a LIBOR floor of 0.75%. Our debt related to real estate owned as of December 31, 2021 is summarized as follows ($ in thousands): Contractual Stated Borrowing Maturity Date Rate (1) Interest Rate Outstanding Carrying Value February 9, 2024 L + 2.78% 3.53 % $ 290,000 $ 289,806 (1) One-month LIBOR at December 31, 2021 was 0.10%. This financing has a LIBOR floor of 0.75%. Interest Expense and Amortization The following table summarizes our interest and amortization expense on secured financings, debt related to real estate owned and on the secured term loan for the three months ended March 31, 2022 and 2021 ($ in thousands): Three Months Ended March 31, 2022 March 31, 2021 Interest on secured financings $ 25,411 $ 29,702 Interest on secured term loan 9,559 11,553 Interest on Debt related to real estate owned (1) 2,584 1,475 Amortization of financing costs 4,610 5,032 Total interest and related expense $ 42,164 $ 47,762 (1) Interest on debt related to real estate owned includes $22,000 and $0 of amortization of financing costs for the three months ended March 31, 2022 and 2021, respectively. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note ASC 820, “Fair Value Measurement and Disclosures” establishes a framework for measuring fair value as well as disclosures about fair value measurements. It emphasizes that fair value is a market-based measurement, not an entity-specific measurement. Therefore, a fair value measurement should be determined based on the assumptions that market participants would use when pricing an asset or liability. As a basis for considering market participant assumptions in fair value measurements, the standards establish a fair value hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity (observable inputs that are classified within Levels 1 and 2 of the hierarchy) and the reporting entity’s own assumptions about market participant assumptions (unobservable inputs classified within Level 3 of the hierarchy). Level 1 inputs utilize unadjusted quoted prices in active markets for identical assets or liabilities that we have the ability to access. Level 2 inputs are inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs may include quoted prices for similar assets and liabilities in active markets, as well as inputs that are observable for the asset or liability other than quoted prices, such as interest rates, foreign exchange rates, and yield curves that are observable at commonly quoted intervals. Level 3 inputs are unobservable inputs for the asset or liability which are typically based on an entity’s own assumptions, as there is little, if any, related market activity. In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement fall is based on the lowest level input that is significant to the fair value measurement in its entirety. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. Financial Instruments 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): March 31, 2022 Fair value hierarchy level Carrying Value Unpaid Principal Balance Fair Value Level 1 Level 2 Level 3 Loans receivable held-for-investment, net $ 6,972,638 $ 7,080,932 $ 7,069,599 $ - $ - $ 7,069,599 Interests in loans receivable held-for- investment, net 153,236 152,841 152,841 - - 152,841 Repurchase agreements 4,019,910 4,019,910 4,019,910 - - 4,019,910 Loan participations sold, net 167,875 168,322 168,228 - - 168,228 Notes payable, net 143,527 146,089 146,612 - - 146,612 Secured term loan, net 738,928 760,810 757,957 - - 757,957 Debt related to real estate owned, net 289,829 290,000 281,706 - - 281,706 December 31, 2021 Fair value hierarchy level Carrying Value Unpaid Principal Balance Fair Value Level 1 Level 2 Level 3 Loans receivable held-for-investment, net $ 6,340,295 $ 6,441,238 $ 6,434,157 $ - $ - $ 6,434,157 Interests in loans receivable held-for- investment, net 161,850 161,566 161,883 - - 161,883 Repurchase agreements 3,489,511 3,489,511 3,484,834 - - 3,484,834 Loan participations sold, net 167,744 168,322 168,738 - - 168,738 Notes payable, net 48,000 48,000 48,000 - - 48,000 Secured term loan, net 739,762 762,717 762,717 - - 762,717 Debt related to real estate owned, net 289,806 290,000 281,723 - - 281,723 |
Equity
Equity | 3 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
Equity | Note Common Stock Our charter provides for the issuance of up to 500,000,000 shares of common stock with a par value of $0.01 per share. We had 140,055,714 common shares issued and 139,653,799 and 139,840,088 common shares outstanding as of March 31, 2022 and December 31, 2021. The following table provides a summary of the number of common shares issued and outstanding at March 31, 2022 and 2021, including redeemable common stock: Three Months Ended Common Stock Outstanding March 31, 2022 March 31, 2021 Beginning balance 139,840,088 132,848,720 Repurchase of common shares (186,289 ) - Ending balance 139,653,799 132,848,720 Repurchased Shares We entered into an agreement (the “10b5-1 Purchase Plan”) with Morgan & Stanley Co. LLC, pursuant to which Morgan Stanley & Co. LLC, as our agent, will buy in the open market up to $25.0 million of our common stock in the aggregate during the period beginning on December 6, 2021 and ending at the earlier of 12 months and the date on which all the capital committed to the 10b5-1 Purchase Plan is expended. The 10b5-1 Purchase Plan will require Morgan Stanley & Co. LLC to purchase shares of our common stock on our behalf when the market price per share is below the book value per common share, subject to certain daily limits prescribed by the 10b5-1 Purchase Plan. For the period from December 6, 2021 through March 31, 2022, we repurchased 401,915 shares of common stock under the repurchase program at an average price per share of $16.87 for a total of $6.8 million. Dividends The following table details our dividend activity for common and preferred stock ($ in thousands, except per share data): For the Quarter Ended March 31, 2022 Amount Per Share Dividends declared - common stock $ 51,672 $ 0.37 Record Date - common stock March 31, 2022 Payment Date - common stock April 15, 2022 For the Quarter Ended March 31, 2021 Amount Per Share Dividends declared - common stock $ 50,000 $ 0.37 Dividends declared - preferred stock (1) $ 4 $ 0.03 Record Date - common stock March 19, 2021 Payment Date - common stock April 1, 2021 (1) Includes 125 preferred units issued at a price of $1,000 per unit and entitled to a 12.5% dividend paid semi-annually that were redeemed on December 15, 2021 at a price of $1,000 per unit. |
Earnings per Share
Earnings per Share | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Note 8. Earnings per Share Basic earnings per share (“EPS”) is calculated by dividing our net income by the weighted average number of shares of common stock outstanding during each period using the two-class method. Diluted EPS is calculated by dividing net income by the weighted average number of shares of common stock outstanding plus the additional dilutive effect of common stock equivalents during each period using the treasury stock method. As of March 31, 2022 and 2021 we had no dilutive securities. As a result, basic and diluted EPS are the same. The calculation of basic and diluted EPS is as follows ($ in thousands, except for share and per share data): Three Months Ended March 31, 2022 March 31, 2021 Net income attributable to Claros Mortgage Trust, Inc. common stockholders $ 29,412 $ 58,608 Weighted average number of common stock, basic and diluted 139,712,501 133,609,126 Net income per share of common stock, basic and diluted $ 0.21 $ 0.44 |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note The activities of the Company are managed by the Manager. Pursuant to the terms of the Management Agreement, the Manager is responsible for originating investment opportunities, providing asset management services and administering the day-to-day operations of the Company. The Management Agreement will remain in-place until August 25, 2025 unless terminated at an earlier date upon the occurrence of certain events. The Manager is entitled to receive a management fee, an incentive fee and a termination fee as defined below. The following table summarizes our management fees ($ in thousands): Three Months Ended March 31, 2022 March 31, 2021 Management fees $ 9,807 $ 9,626 Management Fees Effective October 1, 2015, the Manager earns a base management fee in an amount equal to 1.50% per annum of Stockholders’ Equity. Management fees are reduced by our pro rata share of any management fees and incentive fees (if incentive fees are not incurred by us) paid to the Manager by CMTG/TT. Management fees are paid quarterly, in arrears. Management fees of $9.8 million and $10.0 million were accrued and were included in management fee payable – affiliate, in the consolidated balance sheets at March 31, 2022 and December 31, 2021. Incentive Fees The Manager is entitled to an incentive fee equal to 20% of the excess of our Core Earnings on a rolling four-quarter basis, as defined in the Management Agreement, over a 7.00% return on Stockholders’ Equity, as defined in the Management Agreement of the Company. Incentive fees are reduced by our pro rata share of any incentive fees paid to the Manager by CMTG/TT. The Manager is entitled to an incentive fee equal to 3.33% of the excess of CMTG/TT’s Core Earnings on a rolling four-quarter basis, as defined in the Management Agreement, over a 7.00% return on Unitholders’ Equity of CMTG/TT. There were no accrued incentive fees on the consolidated balance sheets at March 31, 2022 and December 31, 2021, respectively. Termination Fees If we elect to terminate the Management Agreement, we are required to pay the Manager a termination fee equal to three times the sum of the average total annual amount of management fees and the average annual incentive fee paid by us over the prior two years. Reimbursable Expenses The Manager or its affiliates are entitled to reimbursement for certain documented costs and expenses incurred by them on our behalf, as set forth in the Management Agreement, excluding any expenses specifically required to be borne by the Manager under the Management Agreement. For the three months ended March 31, 2022 and 2021, we reimbursed $0.1 million and $0 of out-of-pocket costs incurred on our behalf by our manager. Loans receivable held-for-investment As of March 31, 2022 and December 31, 2021, we have one loan with an outstanding principal balance of $64.4 million and $54.0 million, respectively, and a loan commitment of $141.1 million, whereby the borrower is an affiliate of a shareholder in our common stock who owns 10.8% of common stock outstanding as of March 31, 2022. |
Equity Compensation
Equity Compensation | 3 Months Ended |
Mar. 31, 2022 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Equity Compensation | Note We are externally managed and do not currently have any employees. On March 30, 2016, we adopted the 2016 Incentive Award Plan (the “Plan”) to promote the success and enhance the value of the Company by linking the individual interests of employees of the Manager and its affiliates to those of our stockholders. The maximum number of shares that may be issued under the Plan is equal to 8,281,594 shares. We had no compensation expense for the three months ended March 31, 2022. On April 4, 2019, the Board granted 877,498 time-based RSUs which immediately became vested. Dividend equivalent payments accrued as if those shares were outstanding for all dividends declared during the period beginning August 25, 2015. The fair value of time-based RSUs was recognized immediately. The fair value of the 877,498 RSUs was determined to be $20.00 per share on the grant date based on our share issuances proximate to the grant date. On April 4, 2021, 584,767 fully vested RSUs were delivered and converted to common shares. During the three months ended March 31, 2021, 292,731 time-based RSUs were forfeited prior to their delivery, resulting in the reversal of $5.9 million of previously recognized equity compensation expense which is included as other income in the consolidated statements of operations. On April 4, 2019, the Board granted 1,622,499 performance-based RSUs of which 0% to 100% were scheduled to vest at the conclusion of a three-year For the three months ended March 31, 2021, we recognized a net reversal of previously recognized compensation expense of $1.6 million relating to the performance-based RSUs, primarily due to the forfeiture of 525,206 RSUs, offset in part, by the impact of the expense recognized on shares related to performance-based RSUs that were not forfeited. Equity compensation expense is considered non-cash compensation expense for the three months ended March 31, 2021. The following table details the RSU activity during the three months ended March 31, 2021: Time-based Restricted Stock Units Performance-based Restricted Stock Units Weighted-Average Weighted-Average Number of Grant Date Fair Number of Grant Date Fair Restricted Shares Value Per Share Restricted Shares Value Per Share Unvested, December 31, 2020 - $ - 1,622,499 $ 20.00 Forfeited/cancelled - - (525,206 ) $ 20.00 Unvested, March 31, 2021 - $ - 1,097,293 $ 20.00 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note We have elected to be taxed as a REIT under Sections 856 through 860 of the Internal Revenue Code commencing with our taxable year ended December 31, 2015 and expect to continue to operate so as to qualify as a REIT. As a result, we will generally not be subject to federal and state income tax on that portion of our income that we distribute to stockholders if we distribute at least 90% of our taxable income, determined without regard to the deduction for dividends paid and excluding any net capital gains and activity conducted within our taxable REIT subsidiary (“TRS”), and comply with certain other requirements to qualify as a REIT. Since Commencement of Operations, we were in compliance with all REIT requirements and we plan to continue to operate so that we meet the requirements for taxation as a REIT. Therefore, other than amounts relating to our TRS, as described below, we have not provided for current income tax expense related to our REIT taxable income for the three months ended March 31, 2022 and 2021, respectively. Additionally, no provision has been made for federal or state income taxes in the accompanying financial statements, as we believe we have met the prescribed requisite requirements. Our real estate owned is held in a TRS. A TRS is a corporation that is owned directly or indirectly by a REIT and has jointly elected with the REIT to be treated as a TRS for tax purposes. TRSs provide REITs the flexibility to hold, up to 20% of their total assets, entities or investments that otherwise wouldn’t be permissible in the REIT structure. Our TRS is not consolidated for U.S. federal income tax purposes and is taxed separately as a corporation. For financial reporting purposes, a provision or benefit for current and deferred taxes is established for the portion of earnings or expense recognized by us with respect to our TRS. We recorded deferred income tax benefit of $0 and $4.2 million for the three months ended March 31, 2022 and 2021. We did not have any deferred tax assets or deferred tax liabilities at March 31, 2022 or December 31, 2021 due to a full valuation allowance that was established against our deferred tax assets. For the three months ended March 31, 2022 and 2021, the TRS’s federal statutory income tax rate was 21.00% and 14.44% for state and local income tax purposes for a combined rate of 35.44%. The combined rate includes the federal benefit arising from the state and local income tax deduction allowable for federal tax purposes. For the three months ended March 31, 2022 and 2021, our effective tax rate was 0.0% and (7.68)%, respectively, based on our income tax benefit generated at our TRS relative to our consolidated income before taxes. The components of the deferred tax assets consist of the following ($ in thousands): March 31, 2022 December 31, 2021 Investment basis difference in real estate owned $ 4,000 $ 4,018 Net operating loss carryforward 13,490 10,627 17,490 14,645 Valuation allowance (17,490 ) (14,645 ) Deferred tax asset $ — $ — The TRS had a net operating loss (“NOL”) carryforward in the amount of $38.1 million at March 31, 2022, the impact of which has been reflected in the deferred tax asset recorded by us. Deferred tax assets are recognized only to the extent that it is more likely than not that they will be realized based on consideration of all available evidence, including the future reversals of existing taxable temporary differences, future projected taxable income and tax planning strategies. Valuation allowances are provided if, based upon the weight of the available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. The NOL could be carried forward indefinitely for federal income tax purposes and generally for a period of 20 years for state and local purposes. Based upon the available objective evidence at March 31, 2022, we determined it was more likely than not that the deferred tax assets of our TRS would not be utilized in future periods. As a result, we recorded a $17.5 million valuation allowance to fully reserve against these deferred tax assets. We recognize tax benefits for uncertain tax positions only if it is more likely than not that the position is sustainable based on its technical merits. Interest and penalties on uncertain tax positions are included as a component of the provision for income taxes in our consolidated statements of income. As of March 31, 2022 and December 31, 2021, we have not recorded any amounts for uncertain tax positions. Our tax returns are subject to audit by taxing authorities. Tax years 2018 through 2021 remain open to examination by major taxing jurisdictions to which we are subject to taxes. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2022 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 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 March 31, 2022 and December 31, 2021, we contributed $162.7 million and $162.1 million, respectively to CMTG/TT and have received return of capital distributions of $123.2 million, of which $111.1 million were recallable. As of March 31, 2022 and December 31, 2021, CMTG’s remaining capital commitment to CMTG/TT was $73.2 million and $73.8 million, respectively. As of March 31, 2022 and December 31, 2021, we had aggregate unfunded loan commitments of $1.5 billion and $1.1 billion, which amounts will generally be funded to finance lease-related or capital expenditures by our borrowers, subject to borrowers achieving certain conditions precedent to such funding. These future commitments will expire over the remaining term of the loans, none of which exceed five years. As of March 31, 2022 and December 31, 2021, we had $564.6 million and $584.3 million of undrawn capacity on existing secured financing commitments relating to both the current unpaid principal balance of our loan portfolio and our unfunded loan commitments, which are subject to us pledging additional collateral that is subsequently approved by our financing counterparty. Our contractual payments under all borrowings by maturity were as follows as of March 31, 2022 ($ in thousands): Year Amount 2022 $ 988,575 2023 786,245 2024 1,993,750 2025 709,906 2026 906,655 $ 5,385,131 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. The full impact of COVID-19 on the global economy and our business is uncertain. As of March 31, 2022, no contingencies have been recorded on our consolidated balance sheets as a result of COVID-19, however as the global pandemic continues and the economic implications become better known, it may have long-term impacts on our financial condition, results of operations, and cash flows. Refer to Note 2 for further discussion of COVID-19. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 13. Subsequent Events We have evaluated subsequent events through the filing of this Quarterly Report on Form 10-Q and determined that the following events or transactions that have occurred: 1. On April 15, 2022, the mezzanine lender subordinate to our mortgage with a carrying value of $116.2 million exercised their option, pursuant to an intercreditor agreement, to purchase our loan for $147.8 million (principal, accrued contractual and default interest, and certain fees). The loan had been on non-accrual status since May 2020. This investment generated a net gain on sale of approximately $30.1 million (approximately $0.22 per share based on shares outstanding as of March 31, 2022), which will be reflected as such in the second quarter. Excluding this transaction, the portion of our loan portfolio (based on unpaid principal balance) on non-accrual declined to 2.2% from 3.8% at March 31, 2022 . 2. We originated four floating rate loans with aggregate loan commitments of $392.7 million, of which $299.8 million was funded at closing. 3. We received the full repayment of two loans with a combined unpaid principal balance of $346.0 million at March 31, 2022. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). References to common stock in 2021 includes redeemable common stock. These unaudited consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2021, as filed with the Securities and Exchange Commission. In the opinion of management, all adjustments (consisting only of normal recurring adjustments) necessary for a fair statement of our financial position, results of operations and cash flows have been included. Our results of operations for the three months ended March 31, 2022 are not necessarily indicative of the results to be expected for the full year or any other future period. The consolidated balance sheet at December 31, 2021 was derived from the audited annual financial statements but does not contain all of the footnote disclosures from the annual financial statements. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Estimates that are particularly susceptible to our judgment include, but are not limited to, the adequacy of allowance for loan losses, the determination of effective yield for recognition of interest income and interest expense and recognition of equity compensation expense. The novel coronavirus (“COVID-19”) pandemic has evolved since its onset during the first quarter of 2020, and while the global economy has begun to recover, uncertainty around future developments remain. Over the course of the pandemic, variants of COVID-19 have emerged and resulted in periods of increased infection rates, which caused many countries to re-implement quarantines and travel restrictions. The ongoing pandemic state has also affected global supply chains, the labor market, and inflation, which continue to impact many industries, including the collateral underlying certain of our loans. The overall impact to the global economy will depend largely on the recovery of disrupted supply chains and industries, the extent of the labor market interruptions, and the results of government interventions. Th e impact of COVID-19 on the current and future financial, economic and capital markets environment could remain uneven, and presents uncertainty and risk with respect to the performance of our loans receivable, interests in loans receivable and real estate owned, our financial condition, results of operations, liquidity, and ability to pay dividends. |
Current Expected Credit Losses | Current Expected Credit Losses The current expected credit loss (“CECL”) reserve required under ASU 2016-13 “Financial Instruments – Credit Losses – Measurement of Credit Losses on Financial Instruments (Topic 326)” (“ASU 2016-13”), reflects our current estimate of potential credit losses related to our loan portfolio. The initial CECL allowance recorded on January 1, 2021 is reflected as a direct charge to retained earnings on our consolidated statements of changes in stockholders’ equity. Subsequent changes to the CECL allowance are recognized through net income on our consolidated statements of operations. ASU 2016-13 specifies the reserve should be based on relevant information about past events, including historical loss experience, current portfolio and market conditions and reasonable and supportable forecasts for the duration of each respective loan. General CECL Allowance Our loans are typically collateralized by real estate, or in the case of mezzanine loans, by an equity interest in an entity that owns real estate. We consider key credit quality indicators in underwriting loans and estimating credit losses, including, but not limited to: the capitalization of borrowers and sponsors; the expertise of the borrowers and sponsors in a particular real estate sector and geographic market; collateral type; geographic region; use and occupancy of the property; property market value; loan-to-value (“LTV”) ratio; loan amount and lien position; debt service coverage ratio; our risk rating for the same and similar loans; and prior experience with the borrower and sponsor. This information is used to assess the financial and operating capability, experience and profitability of the sponsor/borrower. Ultimate repayment of our loans is sensitive to interest rate changes, general economic conditions, liquidity, LTV ratio, existence of a liquid investment sales market for commercial properties, and availability of replacement short-term or long-term financing. We regularly evaluate on a loan-by-loan basis, the extent and impact of any credit deterioration associated with the performance and/or value of the underlying collateral property, the financial and operating capability of the borrower/sponsor, the financial strength of loan guarantors, if any, and the overall economic environment, real estate sector, and geographic sub-market in which the borrower operates, at least quarterly. Such analyses are completed and reviewed by asset management personnel and evaluated by senior management, who utilize various data sources, including, to the extent available (i) periodic financial data such as property occupancy, tenant profile, rental rates, operating expenses, the borrower’s exit plan, and capitalization and discount rates, (ii) site inspections, (iii) sales and financing comparables, (iv) current credit spreads for refinancing and (v) other market data. Given the length of our loan terms, management’s reasonable and supportable forecast period exceeds the loan terms and as such we do not need to apply a reversion method. We have classified our loans receivable into the following categories to assess the impact of CECL: 1. Transitional Loans 2. Steady & Improving Loans 3. Stabilized Loans 4. Construction/Future Funding Loans For our loan receivable portfolio, we, with assistance from a third-party service provider, performed a quantitative assessment of the impact of CECL using the Expected Loss (“EL”) approach and the Lifetime Loss Rate (“LLR”) method depending on the allocated category. For transitional loans, steady & improving loans and stabilized loans, we have applied an EL approach because of the consistency in assessing credit risks and estimating expected credit losses. Due to the nature of construction loans, where repayment does not depend on the operating performance of the underlying property, we have applied a LLR approach to estimate the CECL impact. Our allowance for loan losses reflects our estimate of the current and future economic conditions that impact the performance of the commercial real estate assets securing our loans. These estimates include unemployment rates, interest rates, price indices for commercial property, and other macroeconomic factors that may influence the likelihood and magnitude of potential credit losses for our loans during their anticipated term. We license certain macroeconomic financial forecasts to inform of its view of the potential future impact that broader economic conditions may have on our loan portfolio’s performance. The forecasts are embedded in the licensed model that we use to estimate its allowance for loan losses. Selection of these economic forecasts require significant judgment about future events that, while based on the information available to us as of the balance sheet date, are ultimately unknowable with certainty, and the actual economic conditions impacting our portfolio could vary significantly from the estimates we made for the periods presented. Additionally, we assess the obligation to extend credit through our unfunded loan commitments over each loan’s contractual period, which is considered in the estimate of the allowance for loan losses. 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 its outstanding loans receivable that are collateralized directly or indirectly by real estate. Grading criteria include as-is or as-stabilized debt yield and debt service coverage ratios, term of loan, property type, loan type and other more subjective variables that include property or collateral location, as-is or as-stabilized collateral value, market conditions, industry conditions and sponsor’s financial stability. We utilize the grading system to determine each loan’s risk of loss and to provide a determination as to whether an individual loan is impaired and whether a special loan loss allowance is necessary. Based on a 5-point scale, the loans are graded “1” through “5,” from less risk to greater risk, which gradings are defined as follows: 1. Very Low Risk 2. Low Risk 3. Medium Risk 4. High Risk/Potential for Loss: A loan that has a risk of realizing a principal loss 5. Impaired/Loss Likely: A loan that has a very high risk of realizing a principal loss or has otherwise incurred a principal loss Specific CECL Allowance In certain circumstances we may determine that a loan is no longer suited for the model-based approach due to its unique risk characteristics, where we have deemed the borrower/sponsor to be experiencing financial difficulty, or because the repayment of the loan’s principal is collateral-dependent. We may instead elect to employ different methods to estimate loan losses that also conform to ASU 2016-13 and related guidance. If the recovery of a loan’s principal balance is entirely collateral-dependent, we may assess such an asset individually and elect to apply a practical expedient in accordance with ASU 2016-13. For such loan we would measure the specific allowance of each loan separately by using the fair value of the collateral or the net present value of its expected future cash flows. If the fair value of the collateral is less than the carrying value of the loan, an asset-specific allowance is created as a component of our overall allowance for loan losses (following the adoption of CECL, or as a loan loss allowance prior to the adoption of CECL). Specific allowances are equal to the excess of a loan’s carrying value to the present value of its expected cash flows discounted at the loan’s effective rate or the fair value of the collateral, less estimated costs to sell, if recovery of our investment is expected solely from the collateral. If we have determined that a loan or a portion of a loan is uncollectible, we will write-off the loan through a charge to our current expected credit loss reserve based on the present value of expected future cash flows or the fair value of the collateral less costs to sell, if repayment is expected solely from the collateral. Significant judgment is required in determining impairment and in estimating the resulting credit loss reserve, and actual losses, if any, could materially differ from those estimates. For additional information on our General and Specific CECL Allowance please refer to Footnote 3—"Loans Portfolio—Current Expected Credit Losses”. |
Real Estate Owned (and Associated Debt) | Real Estate Owned (and Associated Debt) We may assume legal title or physical possession of the underlying collateral of a defaulted loan through foreclosure. If we intend to hold, operate or develop the property for a period of at least 12 months, the asset is classified as real estate owned, net. If we intend to market a property for sale in the near subsequent term, the asset is classified as real estate held for sale. Real estate owned is initially recorded at estimated fair value and is subsequently presented net of accumulated depreciation. Depreciation is computed using a straight-line method over the estimated useful lives. Real estate assets are evaluated for indicators of impairment on a quarterly basis. Factors that we may consider in our impairment analysis include, among others: (1) significant underperformance relative to historical or anticipated operating results; (2) significant negative industry or economic trends; (3) costs necessary to extend the life or improve the real estate asset; (4) significant increase in competition; and (5) ability to hold and dispose of the real estate asset in the ordinary course of business. A real estate asset is considered impaired when the sum of estimated future undiscounted cash flows expected to be generated by the real estate asset over the estimated remaining holding period is less than the carrying amount of such real estate asset. Cash flows include operating cash flows net of anticipated capital proceeds generated by the real estate asset. If the sum of such estimated cash flows are less than the fair value of the real estate, an impairment charge is recorded equal to the excess of the carrying value of the real estate asset over the fair value. When determining the fair value of a real estate asset, we make certain assumptions including, but not limited to, consideration of projected operating cash flows, comparable selling prices and projected cash flows from the eventual disposition of the real estate asset based upon our estimate of a capitalization rate and discount rate. Debt assumed in an acquisition/foreclosure of real estate is recorded at its estimated fair value at the time of the acquisition. Subsequently, debt related to real estate owned, net is held net of principal repayments and any unamortized debt issuance costs. Other than amounts guaranteed by us, debt related to real estate owned is non-recourse to us. |
Other Assets | Other Assets Other assets include interest receivable, miscellaneous receivables, prepaid expenses, deferred tax asset (net of any valuation allowance), deposits funded relating to unclosed transactions, deferred financing costs and repurchased shares not yet settled. |
Other Liabilities | Other Liabilities Other liabilities include interest payable, accounts payable, accrued expenses, reserves held for loans receivable and deposits. |
Revenue Recognition | Revenue Recognition Interest income from loans receivable is recorded on the accrual basis based on the outstanding principal amount and the contractual terms of the loans. Recognition of fees, premiums, discounts and direct costs associated with these investments is deferred until the loan is advanced and is then amortized or accreted into interest income over the term of the loan as an adjustment to yield using the effective interest method based on expected cash flows through the expected recovery period. Income accrual may be suspended for loans when we determine that the payment of income and principal is no longer probable. Factors considered when making this determination include our assessment of the underlying collateral value, delinquency in excess of 90 days, and overall market conditions. While on non-accrual status, based on our estimation as to collectability of principal, loans are either accounted for on a cash basis, where interest income is recognized only upon actual receipt of cash, or on a cost-recovery basis, where all cash receipts reduce a loan's carrying value. If and when a loan is brought back into compliance with its contractual terms, and our Manager has determined that the borrower has demonstrated an ability and willingness to continue to make contractually required payments related to the loan, we resume accrual of interest. Revenue from real estate owned represents revenue associated with the operations of hotel properties classified as real estate owned. Revenue from the operations of the hotel properties is recognized when guestrooms are occupied, services have been rendered or fees have been earned. Revenues are recorded net of any discounts and sales and other taxes collected from customers. Revenues consist of room sales, food and beverage sales and other hotel revenues. |
Reportable Segments | Reportable Segments We evaluate the operating performance of our investments as a whole. We previously determined that we had two operating segments and one reporting segment as a result of the foreclosure of the hotel portfolio on February 8, 2021. During the three months ended March 31, 2022, we had a change in our Chief Operating Decision Maker (CODM) who determined that we evaluate the operating performance of our investments as a whole and make operating decisions accordingly. Therefore, we have one operating segment and one reporting segment, with activities related to investing in income-producing loans collateralized by institutional quality commercial real estate. This change has been applied retrospectively to all periods presented. |
Reclassifications | Reclassifications Certain |
Recent Accounting Guidance | Recent Accounting Guidance On March 31, 2022, the FASB issued ASU 2022-02, “Financial Instruments – Credit Losses (Topic 326), Troubled Debt restructurings and Vintage Disclosures”, (“ASU 2022-02”). The standard eliminates the recognition and measurement guidance for troubled debt restructurings (“TDRs”) for creditors that have adopted ASU 2016-13 Financial Instruments – Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments, (CECL). In addition to eliminating the TDR accounting guidance, ASU 2022-02 changes existing disclosure requirements and introduces new disclosures related to certain modifications of instruments with borrowers experiencing financial difficulty. The standard is effective for periods beginning after December 15, 2022, with early adoption permitted. We are currently evaluating the impact ASU 2022-02 will have on our consolidated financial statements. The FASB issued ASU 2019-12, Income Taxes (Topic 740), (“ASU 2019-12”). ASU 2019-12 simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. ASU 2019-12 also improves the consistent application of, and simplifies, GAAP for other areas of Topic 740 by clarifying and amending existing guidance. The standard is effective for financial statements issued for fiscal years beginning after December 15, 2021, with early adoption permitted. We adopted ASU 2019-12 on January 1, 2022 and the adoption of ASU 2019-12 did not have a material impact on our consolidated financial statements. The FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, (“ASU 2020-04”). ASU 2020-04 provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. ASU 2020-04 is effective upon issuance of ASU 2020-04 for contract modifications and hedging relationships on a prospective basis. We have not adopted any of the optional expedients or exceptions through March 31, 2022, but will continue to evaluate the possible adoption of any such expedients or exceptions during the effective period as circumstances evolve. |
Loans Portfolio (Table)
Loans Portfolio (Table) | 3 Months Ended |
Mar. 31, 2022 | |
Receivables [Abstract] | |
Schedule of Loans and Financing Receivable | Our loans receivable portfolio as of March 31, 2022 was comprised of the following loans ($ in thousands, except for number of loans): Number of Loans Loan Commitment (5) Unpaid Principal Balance Carrying Value Weighted Average Spread (2) Weighted Average Interest Rate (4) Loans receivable held-for-investment: Variable: Senior loans (1,3) 64 $ 8,219,356 $ 6,763,623 $ 6,720,583 + 4.02% % 5.12 % Subordinate loans 3 138,085 134,770 135,258 + 10.59% % 11.61 % 67 8,357,441 6,898,393 6,855,841 + 4.15% % 5.25 % Fixed: Senior loans (1) 3 $ 56,612 $ 56,612 $ 56,770 N/A 10.41 % Subordinate loans 2 125,927 125,927 125,635 N/A 8.49 % 5 182,539 182,539 182,405 9.09 % Total/Weighted Average 72 $ 8,539,980 $ 7,080,932 $ 7,038,246 N/A 5.35 % Current expected credit loss reserve (65,608 ) Loans receivable held-for-investment, net $ 6,972,638 (1) Senior loans include senior mortgages and similar loans, including related contiguous subordinate loans (if any), and pari passu participations in senior mortgage loans. (2) The weighted average spread is expressed as a spread over the relevant floating benchmark rates. One-month LIBOR as of March 31, 2022 was 0.45%. One-month SOFR as of March 31, 2022 was 0.30%. Weighted average is based on outstanding principal as of March 31, 2022. (3) Includes a fixed rate loan with an outstanding principal balance of $37.9 million and a loan commitment of $39.7 million at March 31, 2022, which shares the same collateral as floating rate loans with an outstanding principal balance of $31.8 million and a loan commitment of $32.6 million at March 31, 2022. (4) Reflects the weighted average interest rate based on the applicable floating benchmark rate (if applicable), including LIBOR/SOFR floors (if applicable). Weighted average is based on outstanding principal as of March 31, 2022 and includes loans on non-accrual status. (5) Loan commitment represents principal outstanding plus remaining unfunded loan commitments. Our loans receivable portfolio as of December 31, 2021 was comprised of the following loans ($ in thousands, except for number of loans): Number of Loans Loan Commitment (5) Unpaid Principal Balance Carrying Value Weighted Average Spread (2) Weighted Average Interest Rate (4) Loans receivable held-for-investment: Variable: Senior loans (1,3) 51 $ 7,163,032 $ 6,119,619 $ 6,085,351 + 4.06% % 5.16 % Subordinate loans 3 137,079 133,119 133,552 + 10.38% % 11.37 % 54 7,300,111 6,252,738 6,218,903 + 4.19% % 5.29 % Fixed: Senior loans (1) 3 $ 62,573 $ 62,573 $ 62,782 N/A 10.09 % Subordinate loans 2 125,927 125,927 125,620 N/A 8.49 % 5 188,500 188,500 188,402 9.02 % Total/Weighted Average 59 $ 7,488,611 $ 6,441,238 $ 6,407,305 N/A 5.40 % Current expected credit loss reserve (67,010 ) Loans receivable held-for-investment, net $ 6,340,295 (1) Senior loans include senior mortgages and similar loans, including related contiguous subordinate loans (if any), and pari passu participations in senior mortgage loans. (2) The weighted average spread is expressed as a spread over the relevant floating benchmark rates. One-month LIBOR as of December 31, 2021 was 0.10%. Weighted average is based on outstanding principal as of December 31, 2021. (3) Includes a fixed rate loan with an outstanding principal balance of $33.5 million and a loan commitment of $39.7 million as of December 31, 2021, which shares the same collateral as floating rate loans with an outstanding principal balance of $103.1 million and a loan commitment of $104.4 million at December 31, 2021. (4) Reflects the weighted average interest rate based on the applicable floating benchmark rate (if applicable), including LIBOR floors (if applicable). Weighted average is based on outstanding principal as of December 31, 2021 and includes loans on non-accrual status. (5) Loan commitment represents principal outstanding plus unfunded loan commitments. |
Schedule of Range of LIBOR Floors | The following table presents the range of LIBOR/SOFR floors held in our loan portfolio as of March 31, 2022 based on outstanding principal ($ in thousands): One-month LIBOR/SOFR Floor Range Unpaid Principal Balance % of Total Cumulative % 2.00% - 2.50% 1,197,145 17 % 17 % 1.50% - 1.99% 1,371,794 20 % 37 % 1.00% - 1.49% 743,393 10 % 47 % 0.50% - 0.99% 216,114 3 % 50 % < 0.50% 2,418,783 34 % 84 % No floor 913,270 13 % 97 % Total Floating Rate Loans 6,860,499 Total Fixed Rate Loans 220,433 3 % 100 % Total Loans $ 7,080,932 |
Summary of Carrying Value and Significant Characteristics of Loans Receivable on Non-accrual Status | The following table presents the carrying value and significant characteristics of our loans receivable on non-accrual status as of March 31, 2022 ($ in thousands): Origination Date Initial Maturity Date Date Through Which Interest Collected Risk Rating Carrying Value Unpaid Principal Balance Specific CECL Reserve Net Carrying Value Interest Recognition Method (1) 5/5/2017 1/1/2023 4/1/2022 5 $ 8,599 $ 8,599 $ (200 ) $ 8,399 Cost Recovery Total current 8,599 8,599 (200 ) 8,399 9/21/2018 (2) 10/1/2020 2/1/2020 4 116,211 116,020 - 116,211 Cash Basis 3/29/2018 1/26/2021 7/9/2020 4 77,075 76,585 - 77,075 Cash Basis 8/2/2019 10/30/2021 11/1/2021 4 67,000 67,000 - 67,000 Cash Basis 7/1/2019 12/30/2020 7/1/2020 5 15,000 15,000 (6,000 ) 9,000 Cost Recovery Total delinquent (3) 275,286 274,605 (6,000 ) 269,286 Total non-accrual (4) $ 283,885 $ 283,204 $ (6,200 ) $ 277,685 Carrying value of associated financings $ (81,421 ) Net carrying value $ 196,264 (1) No interest income was recognized on these loans for the three months ended March 31, 2022. (2) Subsequent to quarter end, this loan was fully satisfied. Loans classified as non-accrual and delinquent on debt service after this repayment represented 2.2% of the total loan portfolio, based on unpaid principal balance. See Note 13 – Subsequent Events for further details. (3) Excludes one additional loan with a carrying value of $105.3 million that was over 90 days delinquent on March 31, 2022 which remains on accrual status. A portion of interest was collected subsequent to March 31, 2022, however the loan remains in maturity default. (4) Loans classified as non-accrual and delinquent on debt service represented 3.8% of the total loan portfolio at March 31, 2022, based on unpaid principal balance. The following table presents the carrying value and significant characteristics of our loans receivable on non-accrual status as of December 31, 2021 ($ in thousands): Origination Date Initial Maturity Date Date Through Which Interest Collected Risk Rating Carrying Value Unpaid Principal Balance Specific CECL Reserve Net Carrying Value Interest Recognition Method 5/5/2017 1/1/2023 12/1/2021 5 $ 11,533 $ 11,533 $ (333 ) $ 11,200 Cost Recovery 7/10/2018 (1) 12/10/2023 12/1/2021 4 77,530 81,380 - 77,530 Cash Basis Total current 89,063 92,913 (333 ) 88,730 8/2/2019 10/30/2021 11/1/2021 4 67,000 67,000 - 67,000 Cash Basis 9/21/2018 10/1/2020 2/1/2020 4 116,211 116,020 - 116,211 Cash Basis 3/29/2018 1/26/2021 7/9/2020 4 76,069 75,579 - 76,069 Cash Basis 7/1/2019 12/30/2020 7/1/2020 5 15,000 15,000 (6,000 ) 9,000 Cost Recovery Total delinquent 274,280 273,599 (6,000 ) 268,280 Total non-accrual (2) $ 363,343 $ 366,512 $ (6,333 ) $ 357,010 Carrying value of associated financings $ (122,450 ) Net carrying value $ 234,560 (1) During the three months ended March 31, 2022, $0.7 million of income was recognized related to this loan. Prior to March 31, 2022, this loan was returned to accrual basis in accordance with our policy. (2) Loans classified as non-accrual and delinquent on debt service represented 4.1% of the total loan portfolio at December 31, 2021, based on unpaid principal balance. |
Schedule of Loan Receivable Portfolio | Activity relating to the loans receivable portfolio for the three months ended March 31, 2022 ($ in thousands): Unpaid Principal Balance Deferred Fees Specific CECL Allowance Carrying Value (1) Balance at December 31, 2021 $ 6,441,238 $ (33,933 ) $ (6,333 ) $ 6,400,972 Initial funding of new loan originations and acquisitions 684,789 — — 684,789 Advances on existing loans 109,979 — — 109,979 Non-cash advances in lieu of interest 13,507 — — 13,507 Origination fees, extension fees and exit fees — (13,057 ) — (13,057 ) Repayments of loans receivable (157,836 ) — — (157,836 ) Repayments of non-cash advances in lieu of interest (10,745 ) — — (10,745 ) Accretion of fees — 4,304 — 4,304 Specific CECL Allowance — — 133 133 Balance at March 31, 2022 $ 7,080,932 $ (42,686 ) $ (6,200 ) $ 7,032,046 General CECL Allowance $ (59,408 ) Carrying Value $ 6,972,638 (1) Balance at December 31, 2021 does not include general CECL allowance. Our loan participations sold as of March 31, 2022 are summarized as follows ($ in thousands): Contractual Maturity Date Maximum Extension Date Borrowing Outstanding Carrying Value Carrying Value of Collateral Variable: (1 ) 8/1/2022 8/1/2023 148,322 148,213 291,063 Fixed: 12/31/2024 12/31/2025 20,000 19,662 132,904 Total/Weighted Average $ 168,322 $ 167,875 $ 423,967 (1) This financing has a LIBOR floor of 1.85% Our loan participations sold as of December 31, 2021 are summarized as follows ($ in thousands): Contractual Maturity Date Maximum Extension Date Borrowing Outstanding Carrying Value Carrying Value of Collateral Variable: (1 ) 8/1/2022 8/1/2023 148,322 148,133 290,783 Fixed: 12/31/2024 12/31/2025 20,000 19,611 130,061 Total/Weighted Average $ 168,322 $ 167,744 $ 420,844 (1) This financing has a LIBOR floor of 1.85% |
Schedule of Interests In Loans Receivable Held For Investment | Our interests in loans receivable portfolio as of March 31, 2022 was comprised of the following loan ($ in thousands): Number of Loans Loan Commitment (3) Unpaid Principal Balance Carrying Value Stated Rate (2) Interest Rate (4) Senior loans (1) 1 $ 174,923 $ 152,841 $ 153,278 L + 4.25% 5.50% Current expected credit loss reserve (42 ) Interests in loans receivable held-for-investment, net $ 153,236 (1) Senior loans include senior mortgages and similar loans, including related contiguous subordinate loans (if any), and pari passu participations in senior mortgage loans. (2) One-month LIBOR as of March 31, 2022 was 0.45%. (3) Loan commitment represents principal outstanding plus unfunded loan commitments. (4) Reflects the interest rate based on the applicable floating benchmark rate (if applicable), including LIBOR/SOFR floors (if applicable). Our interests in loans receivable portfolio as of December 31, 2021 was comprised of the following loan ($ in thousands): Number of Loans Loan Commitment (3) Unpaid Principal Balance Carrying Value Stated Rate (2) Interest Rate (4) Senior loans (1) 1 $ 200,727 $ 161,566 $ 161,864 L + 4.25% 5.50% Current expected credit loss reserve (14 ) Interests in loans receivable held-for-investment, net $ 161,850 (1) Senior loans include senior mortgages and similar loans, including related contiguous subordinate loans (if any), and pari passu participations in senior mortgage loans. (2) One-month LIBOR as of December 31, 2021 was 0.10%. (3) Loan commitment represents principal outstanding plus unfunded loan commitments. (4) Reflects the interest rate based on the applicable floating benchmark rate (if applicable), including LIBOR/SOFR floors (if applicable). |
Schedule of Interests In Loans Receivable Portfolio | Activity relating to the interests in loans receivable portfolio for the three months ended March 31, 2022 ($ in thousands): Unpaid Principal Balance Deferred Fees Carrying Value (1) Balance at December 31, 2021 $ 161,566 $ 298 $ 161,864 Advances on existing interests in loans receivable 14,653 — 14,653 Non-cash advances in lieu of interest 2,427 — 2,427 Origination fees, extension fees and exit fees — (65 ) (65 ) Repayments of interests in loans receivable (23,971 ) — (23,971 ) Repayment of non-cash advances in lieu of interest (1,834 ) — (1,834 ) Accretion of origination fees, net — 204 204 Balance at March 31, 2022 $ 152,841 $ 437 $ 153,278 General CECL Allowance (42 ) Carrying Value $ 153,236 (1) Balance at December 31, 2021 does not include general CECL allowance. |
Schedule of Overall Statistics for Loans Receivable and Interests in Loans Receivable Portfolio | The following table details overall statistics for our loans receivable and interests in loans receivable portfolio ($ in thousands): Loans Receivable Interests in Loans Receivable March 31, 2022 December 31, 2021 March 31, 2022 December 31, 2021 Weighted average yield to maturity 5.6 % 5.6 % 5.5 % 6.7 % Weighted average term to initial maturity 1.9 years 1.8 years 0.1 year 0.1 year Weighted average term to fully extended maturity 3.4 years 3.3 years 1.4 years 1.6 years |
Schedule of Loans Receivable and Interests in Portfolio By Loan Type | The following table presents our loans receivable and interests in loans receivable portfolio by loan type, as well as property type and geographic location of the properties collateralizing these loans as of March 31, 2022 and December 31, 2021 ($ in thousands): March 31, 2022 December 31, 2021 Loan Type (1) Carrying Value Percentage Carrying Value Percentage Senior loans (1) $ 6,930,631 96 % $ 6,309,997 96 % Subordinate loans 260,893 4 % 259,172 4 % $ 7,191,524 100 % $ 6,569,169 100 % Current expected credit loss reserve $ (65,650 ) $ (67,024 ) $ 7,125,874 $ 6,502,145 Property Type Carrying Value Percentage Carrying Value Percentage Office $ 1,077,767 15 % $ 1,113,805 17 % Mixed-use 751,363 10 % 734,613 11 % Hospitality 1,233,693 17 % 1,176,842 18 % Land 633,588 9 % 631,713 10 % Multifamily 2,652,615 37 % 1,986,628 30 % For Sale Condo 614,752 9 % 710,660 11 % Other 227,746 3 % 214,908 3 % $ 7,191,524 100 % $ 6,569,169 100 % Current expected credit loss reserve $ (65,650 ) $ (67,024 ) $ 7,125,874 $ 6,502,145 Geographic Location Carrying Value Percentage Carrying Value Percentage United States Northeast $ 2,625,860 37 % $ 2,734,550 41 % Mid Atlantic 1,238,460 17 % 1,235,527 19 % Midwest 283,722 4 % 309,298 5 % Southeast 952,316 13 % 836,904 13 % Southwest 448,796 6 % 269,461 4 % West 1,618,771 23 % 1,156,896 18 % Other 23,599 0 % 26,533 0 % $ 7,191,524 100 % $ 6,569,169 100 % Current expected credit loss reserve $ (65,650 ) $ (67,024 ) $ 7,125,874 $ 6,502,145 (1) Senior loans include senior mortgages and similar credit quality loans, including related contiguous subordinate loans and pari passu participations in senior mortgage loans. |
Summarizes of Interest and Accretion Income from Loans Receivable | The following table summarizes our interest and accretion income from loans receivable held-for-investment and from interests in loans receivable held-for-investment, and from interest on cash balances for the three months ended March 31, 2022 and 2021 ($ in thousands): Three Months Ended March 31, 2022 March 31, 2021 Coupon interest $ 86,186 $ 99,754 Accretion of fees 4,508 6,049 Total interest and related income $ 90,694 $ 105,803 |
Market Internal Risk Rating Benefit Activity | The following table allocates the principal balance and carrying value of the loans receivable and interests in loans receivable based on our internal risk ratings ($ in thousands): March 31, 2022 Risk Rating Number of Loans Unpaid Principal Balance Carrying Value % of Total of Unpaid Principal Balance 1 2 $ 188,562 $ 188,990 3% 2 6 661,452 657,000 9% 3 52 5,073,326 5,036,859 70% 4 11 1,286,834 1,285,076 18% 5 2 23,599 23,599 0% 73 $ 7,233,773 $ 7,191,524 Current expected credit loss reserve (65,650 ) $ 7,125,874 December 31, 2021 Risk Rating Number of Loans Unpaid Principal Balance Carrying Value % of Total of Unpaid Principal Balance 1 1 $ 35,721 $ 35,699 1% 2 6 705,886 703,714 10% 3 42 4,678,785 4,649,076 71% 4 9 1,155,879 1,154,147 18% 5 2 26,533 26,533 0% 60 $ 6,602,804 $ 6,569,169 Current expected credit loss reserve (67,024 ) $ 6,502,145 |
Schedule of Activity In Allowance For Loan Losses | The following table illustrates the quarterly changes in the current expected credit loss reserve for the three months ended March 31, 2022 and 2021 ($ in thousands): General CECL Allowance Specific CECL Allowance (1) Loans receivable held-for-investment Interests in loans receivable held-for-investment Accrued interest receivable Unfunded loan commitments (2) Total Total current expected credit loss reserve, December 31, 2020 $ 6,000 $ - $ - $ - $ - $ 6,000 Initial CECL allowance, January 1, 2021 - 64,274 406 357 13,214 78,251 Increase (reversal) in current credit loss reserve - 1,547 (141 ) (14 ) (1,577 ) (185 ) Total current expected credit loss reserve, March 31, 2021 $ 6,000 $ 65,821 $ 265 $ 343 $ 11,637 $ 84,066 Total current expected credit loss reserve, December 31, 2021 $ 6,333 $ 60,677 $ 14 $ 218 $ 6,286 $ 73,528 Increase (reversal) in current credit loss reserve (133 ) (1,269 ) 28 (218 ) 3,694 2,102 Total current expected credit loss reserve, March 31, 2022 $ 6,200 $ 59,408 $ 42 $ - $ 9,980 $ 75,630 Percent of Unpaid Principal Balance at March 31, 2022 1.0 % (1) As of December 31, 2020, amounts represent specific loan loss provisions recorded on assets before the adoption of ASU 2016-13. After the adoption of ASU 2016-13 on January 1, 2021, amounts represent Specific CECL allowance. (2) The CECL allowance for unfunded commitments is included in other liabilities on the consolidated balance sheets. |
Schedule of Carrying Value of Loan Portfolio Based on Internal Risk Ratings | Our primary credit quality indicator is our internal risk ratings, which are further discussed above. The following table presents the amortized cost basis of our loans receivable and interest in loans receivable as of March 31, 2022 by year of origination and risk rating ($ in thousands): Amortized Cost Basis by Origination Year Risk Rating Number of Loans Amortized Cost Basis 2022 2021 2020 2019 2018 2017 1 2 $ 188,990 $ - $ - $ - $ - $ 188,990 $ - 2 6 657,000 - 555,869 - - 75,191 25,940 3 52 5,036,859 680,412 1,781,663 63,175 1,982,302 431,881 97,426 4 11 1,285,076 - - 198,788 67,000 1,019,288 - 5 2 23,599 - - - 15,000 - 8,599 73 $ 7,191,524 $ 680,412 $ 2,337,532 $ 261,963 $ 2,064,302 $ 1,715,350 $ 131,965 |
Real Estate Owned, net (Tables)
Real Estate Owned, net (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Real Estate Owned Disclosure Of Detailed Components [Abstract] | |
Summary of additional detail related to the company's real estate owned, net | The following table presents additional detail related to our real estate owned, net as of March 31, 2022 and December 31, 2021 ($ in thousands): March 31, 2022 December 31, 2021 Land $ 123,100 $ 123,100 Building 284,400 284,400 Furniture, fixtures and equipment 6,500 6,500 Real estate assets 414,000 414,000 Less: accumulated depreciation (9,053 ) (7,113 ) Real estate owned, net $ 404,947 $ 406,887 |
Repurchase Agreements, Loan P_2
Repurchase Agreements, Loan Participations Sold, Net, Notes Payable, Net, Secured Term Loan, Net and Debt Related to Real Estate Owned, Net (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Securities Loaned And Securities Sold Under Agreement To Repurchase Gross Including Not Subject To Master Netting Arrangement [Abstract] | |
Summary of Portfolio Financings | The following table summarizes our portfolio financings as of March 31, 2022 ($ in thousands): March 31, 2022 December 31, 2021 Capacity Borrowing Outstanding Weighted Average Spread (1) Capacity Borrowing Outstanding Weighted Average Spread (1) Repurchase agreements $ 4,765,000 $ 3,798,423 + 2.00 % $ 4,065,000 $ 3,274,508 + 2.00 % Repurchase agreements - Side Car 271,171 221,487 + 4.51 % 271,171 215,003 + 4.50 % Loan participations sold 168,322 168,322 + 3.75 % 168,322 168,322 + 3.79 % Notes payable 277,950 146,089 + 3.35 % 48,000 48,000 + 4.00 % Secured Term Loan 760,810 760,810 + 4.50 % 762,717 762,717 + 4.50 % Debt related to real estate owned 290,000 290,000 + 2.78 % 290,000 290,000 + 2.78 % Total / weighted average $ 6,533,253 $ 5,385,131 + 2.59 % $ 5,605,210 $ 4,758,550 + 2.65 % (1) Weighted average spread over the applicable benchmark rate is based on unpaid principal balance. One-month LIBOR as of March 31, 2022 was 0.45%. One-month SOFR at March 31, 2022 was 0.30%. |
Summary of Repurchase Agreements | The following table summarizes our repurchase agreements by lender as of March 31, 2022 ($ in thousands): Lender Initial Maturity Fully Extended Maturity (1) Maximum Capacity Borrowing Outstanding Undrawn Capacity JP Morgan Chase Bank, N.A. - Main Pool 6/29/2025 6/29/2027 $ 1,500,000 $ 1,305,718 $ 194,282 JP Morgan Chase Bank, N.A. - Side Car (2) 5/27/2023 5/27/2024 271,171 221,487 49,684 Morgan Stanley Bank, N.A. (3) 1/26/2023 1/26/2025 1,000,000 1,000,000 - Goldman Sachs Bank USA (4) 5/31/2022 5/31/2023 750,000 428,543 321,457 Wells Fargo Bank, N.A. 9/29/2023 9/29/2026 750,000 655,195 94,805 Barclays Bank PLC 12/20/2022 12/20/2025 500,000 186,384 313,616 Deutsche Bank AG, New York Branch 6/26/2022 6/26/2023 265,000 222,583 42,417 Total $ 5,036,171 $ 4,019,910 $ 1,016,261 (1) Facility maturity dates may be extended based on certain conditions being met. (2) This financing has a LIBOR floor of 0.25% for financings with a reference rate of LIBOR and a SOFR floor of 0.15% for financings with a reference rate of SOFR. (3) One asset on this financing has a SOFR floor of 0.90% and another of 0.15%. (4) This financing has a LIBOR floor of 0.35% and a SOFR floor of 0.25% with respect to certain transactions where the initial financing date was before May 27, 2021. The following table summarizes our repurchase agreements by lender as of December 31, 2021 ($ in thousands): Lender Initial Maturity Fully Extended Maturity (1) Maximum Capacity Borrowing Outstanding Undrawn Capacity JP Morgan Chase Bank, N.A. - Main Pool (2) 6/29/2025 6/29/2027 $ 1,250,000 $ 1,173,280 $ 76,720 JP Morgan Chase Bank, N.A. - Side Car (3) 5/27/2023 5/27/2024 271,171 215,003 56,168 Morgan Stanley Bank, N.A. (4) 1/26/2023 1/26/2024 1,000,000 1,000,000 - Goldman Sachs Bank USA (5) 5/31/2022 5/31/2023 750,000 410,551 339,449 Barclays Bank PLC 12/20/2022 12/20/2025 500,000 193,884 306,116 Deutsche Bank AG, New York Branch 6/26/2022 6/26/2023 265,000 211,372 53,628 Wells Fargo Bank, N.A. 9/29/2023 9/29/2026 300,000 285,421 14,579 Total $ 4,336,171 $ 3,489,511 $ 846,660 (1) Facility maturity dates may be extended based on certain conditions being met. (2) On January 14, 2022, the facility capacity was increased to $1.5 billion. (3) This financing has a LIBOR floor of 0.25% (4) One asset on this financing has a LIBOR floor of 1.00% and another of 0.25%. On January 25, 2022, the reference rate on this facility was changed from LIBOR to SOFR, and the fully extended maturity was extended to January 26, 2025. (5) This financing has a LIBOR floor of 0.35% with respect to transactions where the initial financing date was before May 27, 2021. |
Summary of Liability Under Repurchase Agreements | Liabilities under our repurchase agreements as of March 31, 2022 are summarized as follows ($ in thousands): Lender Weighted Average Term (1) Borrowing Outstanding Carrying Value Carrying Value of Collateral JP Morgan Chase Bank, N.A. - Main Pool 2.1 $ 1,305,718 $ 1,305,718 $ 1,877,691 JP Morgan Chase Bank, N.A. - Side Car 0.8 221,487 221,487 443,645 Morgan Stanley Bank, N.A. 2.0 1,000,000 1,000,000 1,590,552 Goldman Sachs Bank USA 1.4 428,543 428,543 612,301 Wells Fargo Bank, N.A. 2.8 655,195 655,195 832,876 Barclays Bank PLC 1.7 186,384 186,384 284,166 Deutsche Bank AG, New York Branch 2.0 222,583 222,583 341,680 Total/Weighted Average 2.0 $ 4,019,910 $ 4,019,910 $ 5,982,911 (1) The weighted average term (years) is determined based on the contractual maturity date of the corresponding loans collateralizing each facility. Weighted average is based on borrowing outstanding as of March 31, 2022. Liabilities under our repurchase agreements as of December 31, 2021 are summarized as follows ($ in thousands): Lender Weighted Average Term (1) Borrowing Outstanding Carrying Value Carrying Value of Collateral JP Morgan Chase Bank, N.A. - Main Pool 1.6 $ 1,173,280 $ 1,173,280 $ 1,626,719 JP Morgan Chase Bank, N.A. - Side Car 0.9 215,003 215,003 436,325 Morgan Stanley Bank, N.A. 2.4 1,000,000 1,000,000 1,709,758 Goldman Sachs Bank USA 1.3 410,551 410,551 589,825 Barclays Bank PLC 1.4 193,884 193,884 283,716 Deutsche Bank AG, New York Branch 2.3 211,372 211,372 327,671 Wells Fargo Bank, N.A. 2.8 285,421 285,421 362,742 Total/Weighted Average 1.9 $ 3,489,511 $ 3,489,511 $ 5,336,756 (1) The weighted average term (years) is determined based on the contractual maturity date of the corresponding loans collateralizing each facility. Weighted average is based on borrowing outstanding as of December 31, 2021. |
Schedule of Loan Receivable Portfolio | Activity relating to the loans receivable portfolio for the three months ended March 31, 2022 ($ in thousands): Unpaid Principal Balance Deferred Fees Specific CECL Allowance Carrying Value (1) Balance at December 31, 2021 $ 6,441,238 $ (33,933 ) $ (6,333 ) $ 6,400,972 Initial funding of new loan originations and acquisitions 684,789 — — 684,789 Advances on existing loans 109,979 — — 109,979 Non-cash advances in lieu of interest 13,507 — — 13,507 Origination fees, extension fees and exit fees — (13,057 ) — (13,057 ) Repayments of loans receivable (157,836 ) — — (157,836 ) Repayments of non-cash advances in lieu of interest (10,745 ) — — (10,745 ) Accretion of fees — 4,304 — 4,304 Specific CECL Allowance — — 133 133 Balance at March 31, 2022 $ 7,080,932 $ (42,686 ) $ (6,200 ) $ 7,032,046 General CECL Allowance $ (59,408 ) Carrying Value $ 6,972,638 (1) Balance at December 31, 2021 does not include general CECL allowance. Our loan participations sold as of March 31, 2022 are summarized as follows ($ in thousands): Contractual Maturity Date Maximum Extension Date Borrowing Outstanding Carrying Value Carrying Value of Collateral Variable: (1 ) 8/1/2022 8/1/2023 148,322 148,213 291,063 Fixed: 12/31/2024 12/31/2025 20,000 19,662 132,904 Total/Weighted Average $ 168,322 $ 167,875 $ 423,967 (1) This financing has a LIBOR floor of 1.85% Our loan participations sold as of December 31, 2021 are summarized as follows ($ in thousands): Contractual Maturity Date Maximum Extension Date Borrowing Outstanding Carrying Value Carrying Value of Collateral Variable: (1 ) 8/1/2022 8/1/2023 148,322 148,133 290,783 Fixed: 12/31/2024 12/31/2025 20,000 19,611 130,061 Total/Weighted Average $ 168,322 $ 167,744 $ 420,844 (1) This financing has a LIBOR floor of 1.85% |
Summary Of Notes Payable | Our notes payable as of March 31, 2022 are summarized as follows ($ in thousands): Contractual Maturity Date Maximum Extension Date Borrowing Outstanding Carrying Value Carrying Value of Collateral (1) (2 ) 7/5/2022 1/4/2023 $ 48,000 $ 47,921 $ 117,301 (3 ) 12/31/2024 12/31/2025 94,322 92,840 132,904 (4 ) 2/2/2026 2/2/2027 3,767 2,766 3,781 Total/Weighted Average (1) $ 146,089 $ 143,527 $ 253,986 (1) Includes all cash reserve balances held by the servicer. (2) This financing has a LIBOR floor of 2.43%. This financing was fully satisfied in April 2022. (3) This financing has a SOFR floor of 1.75%. (4) This financing has a SOFR floor of 0.32%. Our notes payable as of December 31, 2021 are summarized as follows ($ in thousands): Contractual Maturity Date Maximum Extension Date Borrowing Outstanding Carrying Value Carrying Value of Collateral (1) (2 ) 1/4/2022 1/4/2022 $ 48,000 $ 48,000 $ 116,512 (1) Includes all reserve balances held by servicer. (2) In January 2022, the initial maturity was extended to July 5, 2022 and the maximum maturity date was extended to January 4, 2023. This financing has a LIBOR floor of 2.43%. |
Summary of Secured Term Loan | The secured term loan as of March 31, 2022 is summarized as follows ($ in thousands): Contractual Stated Borrowing Maturity Date Rate (1) Interest Rate Outstanding Carrying Value 8/9/2026 S + 4.50% 5.00% $ 760,810 $ 738,928 (1) One-month SOFR at March 31, 2022 was 0.30% The secured term loan has a floor equal to the greater of one-month SOFR plus 0.10% and 0.50%. The se cured term loan as of December 31, 2021 is summarized as follows ($ in thousands): Contractual Stated Borrowing Maturity Date Rate (1) Interest Rate Outstanding Carrying Value 8/9/2026 S + 4.50% 5.00% $ 762,717 $ 739,762 (1) One-month SOFR at December 31, 2021 was 0.05%. Following the modification on December 1, 2021, the secured term loan has a floor equal to the greater of one-month SOFR plus 0.10% and 0.50%. |
Summary of additional detail related to the company's real estate portfolio | Our debt related to real estate owned as of March 31, 2022 is summarized as follows ($ in thousands): Contractual Stated Borrowing Maturity Date Rate (1) Interest Rate Outstanding Carrying Value February 9, 2024 L + 2.78% 3.53 % $ 290,000 $ 289,829 (1) One-month LIBOR at March 31, 2022 was 0.45%. This financing has a LIBOR floor of 0.75%. Our debt related to real estate owned as of December 31, 2021 is summarized as follows ($ in thousands): Contractual Stated Borrowing Maturity Date Rate (1) Interest Rate Outstanding Carrying Value February 9, 2024 L + 2.78% 3.53 % $ 290,000 $ 289,806 (1) One-month LIBOR at December 31, 2021 was 0.10%. This financing has a LIBOR floor of 0.75%. |
Summary of Interest Expense and Amortization | The following table summarizes our interest and amortization expense on secured financings, debt related to real estate owned and on the secured term loan for the three months ended March 31, 2022 and 2021 ($ in thousands): Three Months Ended March 31, 2022 March 31, 2021 Interest on secured financings $ 25,411 $ 29,702 Interest on secured term loan 9,559 11,553 Interest on Debt related to real estate owned (1) 2,584 1,475 Amortization of financing costs 4,610 5,032 Total interest and related expense $ 42,164 $ 47,762 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Instruments Measured at Carrying And Estimated Fair Value | The carrying value and estimated fair value of financial instruments not recorded at fair value on a recurring basis but required to be disclosed at fair value were as follows ($ in thousands): March 31, 2022 Fair value hierarchy level Carrying Value Unpaid Principal Balance Fair Value Level 1 Level 2 Level 3 Loans receivable held-for-investment, net $ 6,972,638 $ 7,080,932 $ 7,069,599 $ - $ - $ 7,069,599 Interests in loans receivable held-for- investment, net 153,236 152,841 152,841 - - 152,841 Repurchase agreements 4,019,910 4,019,910 4,019,910 - - 4,019,910 Loan participations sold, net 167,875 168,322 168,228 - - 168,228 Notes payable, net 143,527 146,089 146,612 - - 146,612 Secured term loan, net 738,928 760,810 757,957 - - 757,957 Debt related to real estate owned, net 289,829 290,000 281,706 - - 281,706 December 31, 2021 Fair value hierarchy level Carrying Value Unpaid Principal Balance Fair Value Level 1 Level 2 Level 3 Loans receivable held-for-investment, net $ 6,340,295 $ 6,441,238 $ 6,434,157 $ - $ - $ 6,434,157 Interests in loans receivable held-for- investment, net 161,850 161,566 161,883 - - 161,883 Repurchase agreements 3,489,511 3,489,511 3,484,834 - - 3,484,834 Loan participations sold, net 167,744 168,322 168,738 - - 168,738 Notes payable, net 48,000 48,000 48,000 - - 48,000 Secured term loan, net 739,762 762,717 762,717 - - 762,717 Debt related to real estate owned, net 289,806 290,000 281,723 - - 281,723 |
Equity (Tables)
Equity (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
Schedule of Common Stock Issued and Outstanding | The following table provides a summary of the number of common shares issued and outstanding at March 31, 2022 and 2021, including redeemable common stock: Three Months Ended Common Stock Outstanding March 31, 2022 March 31, 2021 Beginning balance 139,840,088 132,848,720 Repurchase of common shares (186,289 ) - Ending balance 139,653,799 132,848,720 |
Summary of Dividends Declared For Common And Preferred Stock. | The following table details our dividend activity for common and preferred stock ($ in thousands, except per share data): For the Quarter Ended March 31, 2022 Amount Per Share Dividends declared - common stock $ 51,672 $ 0.37 Record Date - common stock March 31, 2022 Payment Date - common stock April 15, 2022 For the Quarter Ended March 31, 2021 Amount Per Share Dividends declared - common stock $ 50,000 $ 0.37 Dividends declared - preferred stock (1) $ 4 $ 0.03 Record Date - common stock March 19, 2021 Payment Date - common stock April 1, 2021 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Earning per Share | As of March 31, 2022 and 2021 we had no dilutive securities. As a result, basic and diluted EPS are the same. The calculation of basic and diluted EPS is as follows ($ in thousands, except for share and per share data): Three Months Ended March 31, 2022 March 31, 2021 Net income attributable to Claros Mortgage Trust, Inc. common stockholders $ 29,412 $ 58,608 Weighted average number of common stock, basic and diluted 139,712,501 133,609,126 Net income per share of common stock, basic and diluted $ 0.21 $ 0.44 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Related Party Transactions [Abstract] | |
Summary of Management and Incentive Fees | The following table summarizes our management fees ($ in thousands): Three Months Ended March 31, 2022 March 31, 2021 Management fees $ 9,807 $ 9,626 |
Equity Compensation (Tables)
Equity Compensation (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Restricted Stock Units Activity | The following table details the RSU activity during the three months ended March 31, 2021: Time-based Restricted Stock Units Performance-based Restricted Stock Units Weighted-Average Weighted-Average Number of Grant Date Fair Number of Grant Date Fair Restricted Shares Value Per Share Restricted Shares Value Per Share Unvested, December 31, 2020 - $ - 1,622,499 $ 20.00 Forfeited/cancelled - - (525,206 ) $ 20.00 Unvested, March 31, 2021 - $ - 1,097,293 $ 20.00 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Deferred Tax Assets | The components of the deferred tax assets consist of the following ($ in thousands): March 31, 2022 December 31, 2021 Investment basis difference in real estate owned $ 4,000 $ 4,018 Net operating loss carryforward 13,490 10,627 17,490 14,645 Valuation allowance (17,490 ) (14,645 ) Deferred tax asset $ — $ — |
Commitments and Contingencies (
Commitments and Contingencies (Table) | 3 Months Ended |
Mar. 31, 2022 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Contractual Maturity Payment | Our contractual payments under all borrowings by maturity were as follows as of March 31, 2022 ($ in thousands): Year Amount 2022 $ 988,575 2023 786,245 2024 1,993,750 2025 709,906 2026 906,655 $ 5,385,131 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2022Segment | |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |
Number of operating segments | 1 |
Number of reportable segments | 1 |
ASU 2019-12 | |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |
Change in accounting principle, accounting standards update, adopted | true |
Change in accounting principle, accounting standards update, adoption date | Jan. 1, 2022 |
Change in accounting principle, accounting standards update, immaterial effect | true |
Loans Portfolio - Schedule of L
Loans Portfolio - Schedule of Loans and Financing Receivable (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2022USD ($)Loan | Dec. 31, 2021USD ($)Loan | |||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Loan Commitment(5) | $ 8,539,980 | [1] | $ 7,488,611 | [2] |
Unpaid Principal Balance | 7,080,932 | 6,441,238 | ||
Loans receivable held-for-investment | $ 7,038,246 | $ 6,407,305 | ||
Number of Loans | Loan | 72 | 59 | ||
Weighted Average Interest Rate(4) | 5.35% | [3] | 5.40% | [4] |
Less: current expected credit loss reserve | $ (65,608) | $ (67,010) | ||
Loans receivable held-for-investment, net | 6,972,638 | 6,340,295 | ||
Variable Senior Loans | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Loan Commitment(5) | 8,219,356 | [1],[5],[6] | 7,163,032 | [2],[7],[8] |
Unpaid Principal Balance | 6,763,623 | [5],[6] | 6,119,619 | [7],[8] |
Loans receivable held-for-investment | $ 6,720,583 | [5],[6] | $ 6,085,351 | [7],[8] |
Variable Senior Loans | London Interbank Offered Rate (LIBOR) | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Number of Loans | Loan | 64 | [5],[6] | 51 | [7],[8] |
Weighted Average Spread(2) | + 4.02% | [5],[6],[9] | + 4.06% | [7],[8],[10] |
Weighted Average Interest Rate(4) | 5.12% | [3],[5],[6] | 5.16% | [4],[7],[8] |
Variable Subordinate Loans | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Loan Commitment(5) | $ 138,085 | [1] | $ 137,079 | [2] |
Unpaid Principal Balance | 134,770 | 133,119 | ||
Loans receivable held-for-investment | $ 135,258 | $ 133,552 | ||
Variable Subordinate Loans | London Interbank Offered Rate (LIBOR) | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Number of Loans | Loan | 3 | 3 | ||
Weighted Average Spread(2) | + 10.59% | [9] | + 10.38% | [10] |
Weighted Average Interest Rate(4) | 11.61% | [3] | 11.37% | [4] |
Variable Loan | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Loan Commitment(5) | $ 8,357,441 | [1] | $ 7,300,111 | [2] |
Unpaid Principal Balance | 6,898,393 | 6,252,738 | ||
Loans receivable held-for-investment | $ 6,855,841 | $ 6,218,903 | ||
Variable Loan | London Interbank Offered Rate (LIBOR) | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Number of Loans | Loan | 67 | 54 | ||
Weighted Average Spread(2) | + 4.15% | [9] | + 4.19% | [10] |
Weighted Average Interest Rate(4) | 5.25% | [3] | 5.29% | [4] |
Fixed Senior Loans | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Loan Commitment(5) | $ 56,612 | [1],[6] | $ 62,573 | [2],[8] |
Unpaid Principal Balance | 56,612 | [6] | 62,573 | [8] |
Loans receivable held-for-investment | $ 56,770 | [6] | $ 62,782 | [8] |
Number of Loans | Loan | 3 | [6] | 3 | [8] |
Weighted Average Interest Rate(4) | 10.41% | [3],[6] | 10.09% | [4],[8] |
Fixed Subordinate Loans | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Loan Commitment(5) | $ 125,927 | [1] | $ 125,927 | [2] |
Unpaid Principal Balance | 125,927 | 125,927 | ||
Loans receivable held-for-investment | $ 125,635 | $ 125,620 | ||
Number of Loans | Loan | 2 | 2 | ||
Weighted Average Interest Rate(4) | 8.49% | [3] | 8.49% | [4] |
Fixed Loan | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Loan Commitment(5) | $ 182,539 | [1] | $ 188,500 | [2] |
Unpaid Principal Balance | 182,539 | 188,500 | ||
Loans receivable held-for-investment | $ 182,405 | $ 188,402 | ||
Number of Loans | Loan | 5 | 5 | ||
Weighted Average Interest Rate(4) | 9.09% | [3] | 9.02% | [4] |
[1] | Loan commitment represents principal outstanding plus remaining unfunded loan commitments. | |||
[2] | Loan commitment represents principal outstanding plus unfunded loan commitments | |||
[3] | Reflects the weighted average interest rate based on the applicable floating benchmark rate (if applicable), including LIBOR/SOFR floors (if applicable). Weighted average is based on outstanding principal as of March 31, 2022 and includes loans on non-accrual status. | |||
[4] | Reflects the weighted average interest rate based on the applicable floating benchmark rate (if applicable), including LIBOR floors (if applicable). Weighted average is based on outstanding principal as of December 31, 2021 | |||
[5] | Includes a fixed rate loan with an outstanding principal balance of $37.9 million and a loan commitment of $39.7 million at March 31, 2022, which shares the same collateral as floating rate loans with an outstanding principal balance of $31.8 million and a loan commitment of $32.6 million at March 31, 2022 | |||
[6] | Senior loans include senior mortgages and similar loans, including related contiguous subordinate loans (if any), and pari passu participations in senior mortgage loans | |||
[7] | Includes a fixed rate loan with an outstanding principal balance of $33.5 million and a loan commitment of $39.7 million as of December 31, 2021, which shares the same collateral as floating rate loans with an outstanding principal balance of $103.1 million and a loan commitment of $104.4 million at December 31, 2021. | |||
[8] | Senior loans include senior mortgages and similar loans, including related contiguous subordinate loans (if any), and pari passu participations in senior mortgage loans. | |||
[9] | The weighted average spread is expressed as a spread over the relevant floating benchmark rates. One-month LIBOR as of March 31, 2022 was 0.45%. One-month SOFR as of March 31, 2022 was 0.30%. Weighted average is based on outstanding principal as of March 31, 2022 | |||
[10] | The weighted average spread is expressed as a spread over the relevant floating benchmark rates. One-month LIBOR as of December 31, 2021 was 0.10%. Weighted average is based on outstanding principal as of December 31, 2021. |
Loans Portfolio - Schedule of_2
Loans Portfolio - Schedule of Loans and Financing Receivable (Details) (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Fixed Rate Loan | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Principal amount outstanding of contiguous loans | $ 37.9 | $ 33.5 |
Loan Commitment Amount | 39.7 | 39.7 |
Floating Rate Loan | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Principal amount outstanding of contiguous loans | 31.8 | 103.1 |
Loan Commitment Amount | $ 32.6 | $ 104.4 |
London Interbank Offered Rate (LIBOR) | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
One month LIBOR/ SOFR rate | 0.45% | 0.10% |
Secured Overnight Financing Rate (SOFR) | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
One month LIBOR/ SOFR rate | 0.30% |
Loans Portfolio - Additional In
Loans Portfolio - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Dec. 31, 2021 | |
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Principal repayment received | $ 81,700 | |
Chargeoff | 1,800 | |
Financing receivable, allowance for credit Loss | 200 | $ 300 |
Reversal provision for allowances for credit losses | 2,100 | |
Total allowance for loan losses | (65,608) | $ (67,010) |
COVID 19 [Member] | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Total allowance for loan losses | 75,600 | |
Senior Loans | Entity Loan Modification Program | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Outstanding principal balance for senior loan | $ 95,000 | |
Floating Rate Loan | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Percentage of unpaid principal balance on floating rate loans | 0.95% |
Loans Portfolio - Summary of Ra
Loans Portfolio - Summary of Range of LIBOR/SOFR Floors held by Company (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Dec. 31, 2021 | |
Financing Receivable [Line Items] | ||
Unpaid Principal Balance | $ 7,080,932 | $ 6,441,238 |
LIBOR/SOFR Floor Range One | ||
Financing Receivable [Line Items] | ||
Unpaid Principal Balance | 1,197,145 | |
LIBOR/SOFR Floor Range Two | ||
Financing Receivable [Line Items] | ||
Unpaid Principal Balance | 1,371,794 | |
LIBOR/SOFR Floor Range Three | ||
Financing Receivable [Line Items] | ||
Unpaid Principal Balance | 743,393 | |
LIBOR/SOFR Floor Range Four | ||
Financing Receivable [Line Items] | ||
Unpaid Principal Balance | 216,114 | |
LIBOR/SOFR Floor Range Five | ||
Financing Receivable [Line Items] | ||
Unpaid Principal Balance | 2,418,783 | |
LIBOR/SOFR No Floor | ||
Financing Receivable [Line Items] | ||
Unpaid Principal Balance | 913,270 | |
LIBOR/SOFR Floor Floating Rate Loans | ||
Financing Receivable [Line Items] | ||
Unpaid Principal Balance | 6,860,499 | |
LIBOR/SOFR Floor Fixed Rate | ||
Financing Receivable [Line Items] | ||
Unpaid Principal Balance | $ 220,433 | |
Minimum | LIBOR/SOFR Floor Range One | ||
Financing Receivable [Line Items] | ||
One-month LIBOR Floor Range | 2.00% | |
% of Total | 17.00% | |
Minimum | LIBOR/SOFR Floor Range Two | ||
Financing Receivable [Line Items] | ||
One-month LIBOR Floor Range | 1.50% | |
% of Total | 20.00% | |
Minimum | LIBOR/SOFR Floor Range Three | ||
Financing Receivable [Line Items] | ||
One-month LIBOR Floor Range | 1.00% | |
% of Total | 10.00% | |
Minimum | LIBOR/SOFR Floor Range Four | ||
Financing Receivable [Line Items] | ||
One-month LIBOR Floor Range | 0.50% | |
% of Total | 3.00% | |
Minimum | LIBOR/SOFR Floor Range Five | ||
Financing Receivable [Line Items] | ||
% of Total | 34.00% | |
Minimum | LIBOR/SOFR No Floor | ||
Financing Receivable [Line Items] | ||
% of Total | 13.00% | |
Minimum | LIBOR/SOFR Floor Fixed Rate | ||
Financing Receivable [Line Items] | ||
% of Total | 3.00% | |
Maximum | LIBOR/SOFR Floor Range One | ||
Financing Receivable [Line Items] | ||
One-month LIBOR Floor Range | 2.50% | |
Cumulative % | 17.00% | |
Maximum | LIBOR/SOFR Floor Range Two | ||
Financing Receivable [Line Items] | ||
One-month LIBOR Floor Range | 1.99% | |
Cumulative % | 37.00% | |
Maximum | LIBOR/SOFR Floor Range Three | ||
Financing Receivable [Line Items] | ||
One-month LIBOR Floor Range | 1.49% | |
Cumulative % | 47.00% | |
Maximum | LIBOR/SOFR Floor Range Four | ||
Financing Receivable [Line Items] | ||
One-month LIBOR Floor Range | 0.99% | |
Cumulative % | 50.00% | |
Maximum | LIBOR/SOFR Floor Range Five | ||
Financing Receivable [Line Items] | ||
One-month LIBOR Floor Range | 0.50% | |
Cumulative % | 84.00% | |
Maximum | LIBOR/SOFR No Floor | ||
Financing Receivable [Line Items] | ||
Cumulative % | 97.00% | |
Maximum | LIBOR/SOFR Floor Fixed Rate | ||
Financing Receivable [Line Items] | ||
Cumulative % | 100.00% |
Loans Portfolio - Summary of Ca
Loans Portfolio - Summary of Carrying Value and Significant Characteristics of Loans Receivable on Non-accrual Status (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2022 | Dec. 31, 2021 | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | |||||
Carrying Value | $ 283,885 | [1] | $ 363,343 | [2] | |
Unpaid Principal Balance | 283,204 | [1] | 366,512 | [2] | |
Specific CECL Reserve | (6,200) | [1] | (6,333) | [2] | |
Net Carrying Value | 277,685 | [1] | 357,010 | [2] | |
Carrying value of associated financings | (81,421) | (122,450) | |||
Net carrying value | 196,264 | 234,560 | |||
Loans Receivable Current Non-Accrual | |||||
Financing Receivable Allowance For Credit Losses [Line Items] | |||||
Carrying Value | 8,599 | 89,063 | |||
Unpaid Principal Balance | 8,599 | 92,913 | |||
Specific CECL Reserve | (200) | (333) | |||
Net Carrying Value | $ 8,399 | $ 88,730 | |||
Loans Receivable Current Non-Accrual | Risk Rating Five | |||||
Financing Receivable Allowance For Credit Losses [Line Items] | |||||
Origination Date | May 5, 2017 | May 5, 2017 | |||
Initial Maturity Date | Jan. 1, 2023 | Jan. 1, 2023 | |||
Date Through Which Interest Collected | Apr. 1, 2022 | Dec. 1, 2021 | |||
Carrying Value | $ 8,599 | $ 11,533 | |||
Unpaid Principal Balance | 8,599 | 11,533 | |||
Specific CECL Reserve | (200) | (333) | |||
Net Carrying Value | $ 8,399 | $ 11,200 | |||
Interest Recognition Method(1) | Cost Recovery | [3] | Cost Recovery | ||
Loans Receivable Current Non-Accrual | Risk Rating Four | |||||
Financing Receivable Allowance For Credit Losses [Line Items] | |||||
Origination Date | [4] | Jul. 10, 2018 | |||
Initial Maturity Date | [4] | Dec. 10, 2023 | |||
Date Through Which Interest Collected | [4] | Dec. 1, 2021 | |||
Carrying Value | [4] | $ 77,530 | |||
Unpaid Principal Balance | [4] | 81,380 | |||
Net Carrying Value | [4] | $ 77,530 | |||
Interest Recognition Method(1) | [4] | Cash Basis | |||
Delinquent Non Accrual | |||||
Financing Receivable Allowance For Credit Losses [Line Items] | |||||
Carrying Value | $ 275,286 | [5] | $ 274,280 | ||
Unpaid Principal Balance | 274,605 | [5] | 273,599 | ||
Specific CECL Reserve | (6,000) | [5] | (6,000) | ||
Net Carrying Value | $ 269,286 | [5] | $ 268,280 | ||
Delinquent Non Accrual | Risk Rating 4 | |||||
Financing Receivable Allowance For Credit Losses [Line Items] | |||||
Origination Date | Sep. 21, 2018 | [6] | Aug. 2, 2019 | ||
Initial Maturity Date | Oct. 1, 2020 | [6] | Oct. 30, 2021 | ||
Date Through Which Interest Collected | Feb. 1, 2020 | [6] | Nov. 1, 2021 | ||
Carrying Value | $ 116,211 | [6] | $ 67,000 | ||
Unpaid Principal Balance | 116,020 | [6] | 67,000 | ||
Net Carrying Value | $ 116,211 | [6] | $ 67,000 | ||
Interest Recognition Method(1) | Cash Basis | [3],[6] | Cash Basis | ||
Delinquent Non Accrual | Risk Rating 4 | |||||
Financing Receivable Allowance For Credit Losses [Line Items] | |||||
Origination Date | Mar. 29, 2018 | Sep. 21, 2018 | |||
Initial Maturity Date | Jan. 26, 2021 | Oct. 1, 2020 | |||
Date Through Which Interest Collected | Jul. 9, 2020 | Feb. 1, 2020 | |||
Carrying Value | $ 77,075 | $ 116,211 | |||
Unpaid Principal Balance | 76,585 | 116,020 | |||
Net Carrying Value | $ 77,075 | $ 116,211 | |||
Interest Recognition Method(1) | Cash Basis | [3] | Cash Basis | ||
Delinquent Non Accrual | Risk Rating 4 | |||||
Financing Receivable Allowance For Credit Losses [Line Items] | |||||
Origination Date | Aug. 2, 2019 | Mar. 29, 2018 | |||
Initial Maturity Date | Oct. 30, 2021 | Jan. 26, 2021 | |||
Date Through Which Interest Collected | Nov. 1, 2021 | Jul. 9, 2020 | |||
Carrying Value | $ 67,000 | $ 76,069 | |||
Unpaid Principal Balance | 67,000 | 75,579 | |||
Net Carrying Value | $ 67,000 | $ 76,069 | |||
Interest Recognition Method(1) | Cash Basis | [3] | Cash Basis | ||
Delinquent Non Accrual | Risk Rating 5 | |||||
Financing Receivable Allowance For Credit Losses [Line Items] | |||||
Origination Date | Jul. 1, 2019 | Jul. 1, 2019 | |||
Initial Maturity Date | Dec. 30, 2020 | Dec. 30, 2020 | |||
Date Through Which Interest Collected | Jul. 1, 2020 | Jul. 1, 2020 | |||
Carrying Value | $ 15,000 | $ 15,000 | |||
Unpaid Principal Balance | 15,000 | 15,000 | |||
Specific CECL Reserve | (6,000) | (6,000) | |||
Net Carrying Value | $ 9,000 | $ 9,000 | |||
Interest Recognition Method(1) | Cost Recovery | [3] | Cost Recovery | ||
[1] | Loans classified as non-accrual and delinquent on debt service represented 3.8% of the total loan portfolio at March 31, 2022, based on unpaid principal balance. | ||||
[2] | Loans classified as non-accrual and delinquent on debt service represented 4.1% of the total loan portfolio at December 31, 2021, based on unpaid principal balance. | ||||
[3] | No interest income was recognized on these loans for the three months ended March 31, 2022. | ||||
[4] | During the three months ended March 31, 2022, $0.7 million of income was recognized related to this loan. Prior to March 31, 2022, this loan was returned to accrual basis in accordance with our policy. | ||||
[5] | Excludes one additional loan with a carrying value of $105.3 million that was over 90 days delinquent on March 31, 2022 which remains on accrual status. A portion of interest was collected subsequent to March 31, 2022, however the loan remains in maturity default. | ||||
[6] | Subsequent to quarter end, this loan was fully satisfied. Loans classified as non-accrual and delinquent on debt service after this repayment represented 2.2% of the total loan portfolio, based on unpaid principal balance. See Note 13 – Subsequent Events for further details. |
Loans Portfolio - Summary of _2
Loans Portfolio - Summary of Carrying Value and Significant Characteristics of Loans Receivable on Non-accrual Status (Details) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Dec. 03, 2021 | |
Receivables [Abstract] | ||
Interest recognized | $ 0 | |
Financing receivable, 90 days or more past due, still accruing | $ 105,300 | |
Financing receivable, percent past due | 3.80% | 4.10% |
Financing receivable, nonaccrual, percent past due | 2.20% | |
Financing receivable, interest income, accrual method | $ 700 |
Loans Portfolio - Schedule of_3
Loans Portfolio - Schedule of Loan Receivable Portfolio (Detail) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | ||
Loans Receivable Roll Forward [Line Items] | ||||
Repayment of non-cash advances on loans receivable in lieu of interest | $ 10,745 | $ 5,134 | ||
Accretion of fees | 4,304 | $ 5,791 | ||
Loans receivable held-for-investment | 7,038,246 | $ 6,407,305 | ||
Unpaid Principal Balance [Member] | ||||
Loans Receivable Roll Forward [Line Items] | ||||
Balance | 6,441,238 | |||
Initial funding of new loan originations and acquisitions | 684,789 | |||
Advances on existing loans | 109,979 | |||
Non-cash advances in lieu of interest | 13,507 | |||
Repayments of loans receivable | (157,836) | |||
Repayment of non-cash advances on loans receivable in lieu of interest | (10,745) | |||
Balance | 7,080,932 | |||
Deferred Fees [Member] | ||||
Loans Receivable Roll Forward [Line Items] | ||||
Balance | (33,933) | |||
Origination fees, extension fees and exit fees | (13,057) | |||
Accretion of fees | 4,304 | |||
Balance | (42,686) | |||
Specific CECL Allowance [Member] | ||||
Loans Receivable Roll Forward [Line Items] | ||||
Balance | (6,333) | |||
Specific CECL Allowance | 133 | |||
Balance | (6,200) | |||
Carrying Value | ||||
Loans Receivable Roll Forward [Line Items] | ||||
Balance | [1] | 6,400,972 | ||
Initial funding of new loan originations and acquisitions | [1] | 684,789 | ||
Advances on existing loans | [1] | 109,979 | ||
Non-cash advances in lieu of interest | [1] | 13,507 | ||
Origination fees, extension fees and exit fees | [1] | (13,057) | ||
Repayments of loans receivable | [1] | (157,836) | ||
Repayment of non-cash advances on loans receivable in lieu of interest | [1] | (10,745) | ||
Accretion of fees | [1] | 4,304 | ||
Specific CECL Allowance | [1] | 133 | ||
Balance | [1] | 7,032,046 | ||
General CECL Allowance | [1] | (59,408) | ||
Loans receivable held-for-investment | [1] | $ 6,972,638 | ||
[1] | Balance at December 31, 2021 does not include general CECL allowance. |
Loans Portfolio - Schedule of I
Loans Portfolio - Schedule of Interests in Loans Receivable Held For Investment (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2022USD ($)Loan | Dec. 31, 2021USD ($)Loan | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Loan Commitment(5) | $ 8,539,980 | [1] | $ 7,488,611 | [2] | |
Held-to-maturity Securities | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Current expected credit loss reserve | (42) | (14) | |||
Interests in loans receivable held-for-investment, net | $ 153,236 | $ 161,850 | |||
Held-to-maturity Securities | Senior Loans | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Number of Loans | Loan | [3] | 1 | 1 | ||
Loan Commitment(5) | [2],[3] | $ 174,923 | $ 200,727 | ||
Unpaid Principal Balance | [3] | 152,841 | 161,566 | ||
Carrying Value | [3] | $ 153,278 | $ 161,864 | ||
Stated Rate(2) | [4] | L + 4.25% | L + 4.25% | ||
Interest Rate(4) | [5] | 5.50% | 5.50% | ||
[1] | Loan commitment represents principal outstanding plus remaining unfunded loan commitments. | ||||
[2] | Loan commitment represents principal outstanding plus unfunded loan commitments | ||||
[3] | Senior loans include senior mortgages and similar loans, including related contiguous subordinate loans (if any), and pari passu participations in senior mortgage loans. | ||||
[4] | One-month LIBOR as of March 31, 2022 was 0.45%. | ||||
[5] | Reflects the interest rate based on the applicable floating benchmark rate (if applicable), including LIBOR/SOFR floors (if applicable). |
Loans Portfolio - Schedule of_4
Loans Portfolio - Schedule of Interests in Loans Receivable Held For Investment (Details) (Parenthetical) | Mar. 31, 2022 | Dec. 31, 2021 |
Held-to-maturity Securities | London Interbank Offered Rate (LIBOR) | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
One month LIBOR | 0.45% | 0.10% |
Loans Portfolio - Schedule of_5
Loans Portfolio - Schedule of Interests in Loans Receivable Portfolio (Details) - Held-to-maturity Securities $ in Thousands | 3 Months Ended | |
Mar. 31, 2022USD ($) | ||
Unpaid Principal Balance [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Balance | $ 161,566 | |
Advances on existing interests in loans receivable | 14,653 | |
Non-cash advances in lieu of interest | 2,427 | |
Repayments of interests in loans receivable | (23,971) | |
Repayment of non-cash advances in lieu of interest | (1,834) | |
Balance | 152,841 | |
Deferred Fees [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Balance | 298 | |
Origination fees, extension fees and exit fees | (65) | |
Accretion of origination fees, net | 204 | |
Balance | 437 | |
Carrying Value | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Balance | 161,864 | [1] |
Advances on existing interests in loans receivable | 14,653 | [1] |
Non-cash advances in lieu of interest | 2,427 | [1] |
Origination fees, extension fees and exit fees | (65) | [1] |
Repayments of interests in loans receivable | (23,971) | [1] |
Repayment of non-cash advances in lieu of interest | (1,834) | [1] |
Accretion of origination fees, net | 204 | [1] |
Balance | 153,278 | [1] |
General CECL Allowance | (42) | [1] |
Carrying Value | $ 153,236 | [1] |
[1] | Balance at December 31, 2021 does not include general CECL allowance. |
Loans Portfolio - Schedule of O
Loans Portfolio - Schedule of Overall Statistics for Loans Receivable and Interests in Loans Receivable Portfolio (Details) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Loans Receivable Portfolio | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Weighted average yield to maturity | 5.60% | 5.60% |
Weighted average term to initial maturity | 1 year 10 months 24 days | 1 year 9 months 18 days |
Weighted average term to fully extended maturity | 3 years 4 months 24 days | 3 years 3 months 18 days |
Interests In Loans Receivable Portfolio | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Weighted average yield to maturity | 5.50% | 6.70% |
Weighted average term to initial maturity | 1 month 6 days | 1 month 6 days |
Weighted average term to fully extended maturity | 1 year 4 months 24 days | 1 year 7 months 6 days |
Loans Portfolio - Schedule of_6
Loans Portfolio - Schedule of Loans Receivable and Interests Portfolio By Loan Type (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | ||
Accounts Notes And Loans Receivable [Line Items] | ||||
Total portfolio loans carrying value | $ 7,038,246 | $ 6,407,305 | ||
Less: current expected credit loss reserve | (65,608) | (67,010) | ||
Loans receivable held-for-investment, net | 6,972,638 | 6,340,295 | ||
Concentration of Risk | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Less: current expected credit loss reserve | (65,650) | (67,024) | [1] | |
Loans receivable held-for-investment, net | 7,125,874 | 6,502,145 | [1] | |
Concentration of Risk | Loan Type | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Total portfolio loans carrying value | $ 7,191,524 | $ 6,569,169 | ||
Percentage of total portfolio loans | 100.00% | 100.00% | ||
Concentration of Risk | Property Type | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Total portfolio loans carrying value | $ 7,191,524 | $ 6,569,169 | ||
Percentage of total portfolio loans | 100.00% | 100.00% | ||
Concentration of Risk | Property Type | Office | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Total portfolio loans carrying value | $ 1,077,767 | $ 1,113,805 | ||
Percentage of total portfolio loans | 15.00% | 17.00% | ||
Concentration of Risk | Property Type | Mixed-Use | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Total portfolio loans carrying value | $ 751,363 | $ 734,613 | ||
Percentage of total portfolio loans | 10.00% | 11.00% | ||
Concentration of Risk | Property Type | Hospitality | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Total portfolio loans carrying value | $ 1,233,693 | $ 1,176,842 | ||
Percentage of total portfolio loans | 17.00% | 18.00% | ||
Concentration of Risk | Property Type | Land | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Total portfolio loans carrying value | $ 633,588 | $ 631,713 | ||
Percentage of total portfolio loans | 9.00% | 10.00% | ||
Concentration of Risk | Property Type | Multifamily | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Total portfolio loans carrying value | $ 2,652,615 | $ 1,986,628 | ||
Percentage of total portfolio loans | 37.00% | 30.00% | ||
Concentration of Risk | Property Type | For Sale Condo | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Total portfolio loans carrying value | $ 614,752 | $ 710,660 | ||
Percentage of total portfolio loans | 9.00% | 11.00% | ||
Concentration of Risk | Property Type | Other | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Total portfolio loans carrying value | $ 227,746 | $ 214,908 | ||
Percentage of total portfolio loans | 3.00% | 3.00% | ||
Concentration of Risk | Geographic Location | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Total portfolio loans carrying value | $ 7,191,524 | $ 6,569,169 | ||
Percentage of total portfolio loans | 100.00% | 100.00% | ||
Concentration of Risk | Geographic Location | Northeast | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Total portfolio loans carrying value | $ 2,625,860 | $ 2,734,550 | ||
Percentage of total portfolio loans | 37.00% | 41.00% | ||
Concentration of Risk | Geographic Location | Mid Atlantic | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Total portfolio loans carrying value | $ 1,238,460 | $ 1,235,527 | ||
Percentage of total portfolio loans | 17.00% | 19.00% | ||
Concentration of Risk | Geographic Location | Midwest | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Total portfolio loans carrying value | $ 283,722 | $ 309,298 | ||
Percentage of total portfolio loans | 4.00% | 5.00% | ||
Concentration of Risk | Geographic Location | Southeast | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Total portfolio loans carrying value | $ 952,316 | $ 836,904 | ||
Percentage of total portfolio loans | 13.00% | 13.00% | ||
Concentration of Risk | Geographic Location | Southwest | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Total portfolio loans carrying value | $ 448,796 | $ 269,461 | ||
Percentage of total portfolio loans | 6.00% | 4.00% | ||
Concentration of Risk | Geographic Location | West | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Total portfolio loans carrying value | $ 1,618,771 | $ 1,156,896 | ||
Percentage of total portfolio loans | 23.00% | 18.00% | ||
Concentration of Risk | Geographic Location | Other | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Total portfolio loans carrying value | $ 23,599 | $ 26,533 | ||
Percentage of total portfolio loans | 0.00% | 0.00% | ||
Concentration of Risk | Senior Loans | Loan Type | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Total portfolio loans carrying value | [1] | $ 6,930,631 | $ 6,309,997 | |
Percentage of total portfolio loans | [1] | 96.00% | 96.00% | |
Concentration of Risk | Subordinate loans | Loan Type | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Total portfolio loans carrying value | $ 260,893 | $ 259,172 | ||
Percentage of total portfolio loans | 4.00% | 4.00% | ||
[1] | Senior loans include senior mortgages and similar credit quality loans, including related contiguous subordinate loans and pari passu participations in senior mortgage loans. |
Loans Portfolio - Summary of In
Loans Portfolio - Summary of Interest and Accretion Income from Loans Receivable (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Receivables [Abstract] | ||
Coupon interest | $ 86,186 | $ 99,754 |
Accretion of fees | 4,508 | 6,049 |
Total interest and related income | $ 90,694 | $ 105,803 |
Loans Portfolio - Schedule of C
Loans Portfolio - Schedule of Carrying Value of The Loans Receivable And Interests In Loans Receivable (Details) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022USD ($)Loan | Dec. 31, 2021USD ($)Loan | |
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Number of Loans | Loan | 73 | 60 |
Principal Balance | $ 7,233,773 | $ 6,602,804 |
Carrying Value | 7,125,874 | 6,502,145 |
Carrying value gross | 7,191,524 | 6,569,169 |
Current expected credit loss reserve | $ (65,650) | $ (67,024) |
Risk Rating One | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Number of Loans | Loan | 2 | 1 |
Principal Balance | $ 188,562 | $ 35,721 |
Carrying Value | $ 188,990 | $ 35,699 |
% of Total of Unpaid Principal Balance | 3.00% | 1.00% |
Risk Rating Two | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Number of Loans | Loan | 6 | 6 |
Principal Balance | $ 661,452 | $ 705,886 |
Carrying Value | $ 657,000 | $ 703,714 |
% of Total of Unpaid Principal Balance | 9.00% | 10.00% |
Risk Rating Three | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Number of Loans | Loan | 52 | 42 |
Principal Balance | $ 5,073,326 | $ 4,678,785 |
Carrying Value | $ 5,036,859 | $ 4,649,076 |
% of Total of Unpaid Principal Balance | 70.00% | 71.00% |
Risk Rating Four | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Number of Loans | Loan | 11 | 9 |
Principal Balance | $ 1,286,834 | $ 1,155,879 |
Carrying Value | $ 1,285,076 | $ 1,154,147 |
% of Total of Unpaid Principal Balance | 18.00% | 18.00% |
Risk Rating Five | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Number of Loans | Loan | 2 | 2 |
Principal Balance | $ 23,599 | $ 26,533 |
Carrying Value | $ 23,599 | $ 26,533 |
% of Total of Unpaid Principal Balance | 0.00% | 0.00% |
Loans Portfolio - Loan Risk Rat
Loans Portfolio - Loan Risk Ratings (Details) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Receivables [Abstract] | ||
Weighted-average risk rating on loan exposure | 3.00% | 3.10% |
Loans Portfolio - Schedule of A
Loans Portfolio - Schedule of Activity In Current Expected Credit Loss Reserve (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | ||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Total current expected credit loss reserve, Balance | $ 67,010 | ||
Total current expected credit loss reserve, Balance | 65,608 | ||
Current Expected Credit Losses | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Total current expected credit loss reserve, Balance | 73,528 | $ 6,000 | |
Initial CECL allowance, January 1, 2021 | 78,251 | ||
Increase (reversal) in current credit loss reserve | 2,102 | (185) | |
Total current expected credit loss reserve, Balance | $ 75,630 | 84,066 | |
Percent of Unpaid Principal Balance at March 31, 2022 | 1.00% | ||
Current Expected Credit Losses | Specific C E C L Allowance | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Total current expected credit loss reserve, Balance | [1] | $ 6,333 | 6,000 |
Increase (reversal) in current credit loss reserve | [1] | (133) | |
Total current expected credit loss reserve, Balance | [1] | 6,200 | 6,000 |
Current Expected Credit Losses | Loans Receivable Held For Investment | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Total current expected credit loss reserve, Balance | 60,677 | ||
Initial CECL allowance, January 1, 2021 | 64,274 | ||
Increase (reversal) in current credit loss reserve | (1,269) | 1,547 | |
Total current expected credit loss reserve, Balance | 59,408 | 65,821 | |
Current Expected Credit Losses | Interests In Loans Receivable Held For Investment | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Total current expected credit loss reserve, Balance | 14 | ||
Initial CECL allowance, January 1, 2021 | 406 | ||
Increase (reversal) in current credit loss reserve | 28 | (141) | |
Total current expected credit loss reserve, Balance | 42 | 265 | |
Current Expected Credit Losses | Accrued Interest Receivable | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Total current expected credit loss reserve, Balance | 218 | ||
Initial CECL allowance, January 1, 2021 | 357 | ||
Increase (reversal) in current credit loss reserve | (218) | (14) | |
Total current expected credit loss reserve, Balance | 343 | ||
Current Expected Credit Losses | Unfunded Loan Commitments | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Total current expected credit loss reserve, Balance | [2] | 6,286 | |
Initial CECL allowance, January 1, 2021 | [2] | 13,214 | |
Increase (reversal) in current credit loss reserve | [2] | 3,694 | (1,577) |
Total current expected credit loss reserve, Balance | [2] | $ 9,980 | $ 11,637 |
[1] | As of December 31, 2020, amounts represent specific loan loss provisions recorded on assets before the adoption of ASU 2016-13. After the adoption of ASU 2016-13 on January 1, 2021, amounts represent Specific CECL allowance | ||
[2] | The CECL allowance for unfunded commitments is included in other liabilities on the consolidated balance sheets |
Loan Portfolio - Schedule of Ca
Loan Portfolio - Schedule of Carrying Value of Loan Portfolio Based on Internal Risk Ratings (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2022USD ($)Integer | |
Financing Receivable Allowance For Credit Losses [Line Items] | |
Number of Loans | Integer | 73 |
Amortized Cost Basis | $ 7,191,524 |
Year 1 | 680,412 |
Year 2 | 2,337,532 |
Year 3 | 261,963 |
Year 4 | 2,064,302 |
Year 5 | 1,715,350 |
Year 6 | $ 131,965 |
Risk Rating One | |
Financing Receivable Allowance For Credit Losses [Line Items] | |
Number of Loans | Integer | 2 |
Amortized Cost Basis | $ 188,990 |
Year 5 | $ 188,990 |
Risk Rating Two | |
Financing Receivable Allowance For Credit Losses [Line Items] | |
Number of Loans | Integer | 6 |
Amortized Cost Basis | $ 657,000 |
Year 2 | 555,869 |
Year 5 | 75,191 |
Year 6 | $ 25,940 |
Risk Rating Three | |
Financing Receivable Allowance For Credit Losses [Line Items] | |
Number of Loans | Integer | 52 |
Amortized Cost Basis | $ 5,036,859 |
Year 1 | 680,412 |
Year 2 | 1,781,663 |
Year 3 | 63,175 |
Year 4 | 1,982,302 |
Year 5 | 431,881 |
Year 6 | $ 97,426 |
Risk Rating Four | |
Financing Receivable Allowance For Credit Losses [Line Items] | |
Number of Loans | Integer | 11 |
Amortized Cost Basis | $ 1,285,076 |
Year 3 | 198,788 |
Year 4 | 67,000 |
Year 5 | $ 1,019,288 |
Risk Rating Five | |
Financing Receivable Allowance For Credit Losses [Line Items] | |
Number of Loans | Integer | 2 |
Amortized Cost Basis | $ 23,599 |
Year 4 | 15,000 |
Year 6 | $ 8,599 |
Real Estate Owned, net - Additi
Real Estate Owned, net - Additional Information (Details) - USD ($) | Jun. 02, 2021 | Feb. 08, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 |
Mortgage Loans On Real Estate [Line Items] | |||||
Loan held by company | $ 423,967,000 | $ 420,844,000 | |||
Debt related to real estate owned, net | 289,829,000 | 289,806,000 | |||
Gain on foreclosure of real estate owned | $ 1,430,000 | ||||
Real estate acquired through foreclosure, fair value | 404,947 | $ 406,887 | |||
Interest expense | 42,164,000 | 47,762,000 | |||
General and administrative expense | $ 4,343,000 | $ 1,189,000 | |||
Senior Mortgage Loans [Member] | |||||
Mortgage Loans On Real Estate [Line Items] | |||||
Maturity date | Feb. 9, 2024 | ||||
Principal repayment | $ 10,000,000 | ||||
Fee amount | 7,600,000 | ||||
Interest expense | 6,300,000 | ||||
General and administrative expense | 1,100,000 | ||||
Debt issuance costs | $ 200,000 | ||||
Hotel [Member] | NEW YORK [Member] | |||||
Mortgage Loans On Real Estate [Line Items] | |||||
Gain on foreclosure of real estate owned | $ 1,400,000 | ||||
Real estate acquired through foreclosure, fair value | $ 414,000,000 | ||||
Terminal capitalization rate | 6.00% | ||||
Hotel [Member] | NEW YORK [Member] | Minimum | |||||
Mortgage Loans On Real Estate [Line Items] | |||||
Discount rate | 8.50% | ||||
Hotel [Member] | NEW YORK [Member] | Maximum | |||||
Mortgage Loans On Real Estate [Line Items] | |||||
Discount rate | 8.75% | ||||
Hotel [Member] | NEW YORK [Member] | Mezzanine Loans [Member] | |||||
Mortgage Loans On Real Estate [Line Items] | |||||
Loan held by company | $ 103,900,000 | ||||
Hotel [Member] | NEW YORK [Member] | Senior Mortgage Loans [Member] | |||||
Mortgage Loans On Real Estate [Line Items] | |||||
Debt related to real estate owned, net | $ 300,000,000 |
Real Estate Owned, net - Summar
Real Estate Owned, net - Summary of additional detail related to the company's real estate owned, net (Details) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Property Plant And Equipment [Line Items] | ||
Real estate assets | $ 414,000 | $ 414,000 |
Less: accumulated depreciation | (9,053) | (7,113) |
Real estate acquired through foreclosure, fair value | 404,947 | 406,887 |
Land | ||
Property Plant And Equipment [Line Items] | ||
Real estate assets | 123,100 | 123,100 |
Building | ||
Property Plant And Equipment [Line Items] | ||
Real estate assets | 284,400 | 284,400 |
Furniture, Fixtures and Equipment | ||
Property Plant And Equipment [Line Items] | ||
Real estate assets | $ 6,500 | $ 6,500 |
Repurchase Agreements, Loan P_3
Repurchase Agreements, Loan Participations Sold, Notes Payable and Secured Term Loan, Net - Summary of Portfolio Financings (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Repurchase Agreement Counterparty [Line Items] | ||
Capacity | $ 6,533,253 | $ 5,605,210 |
Borrowing Outstanding | $ 5,385,131 | $ 4,758,550 |
Weighted Average Spread | 2.59% | 2.65% |
Repurchase Agreement [Member] | ||
Repurchase Agreement Counterparty [Line Items] | ||
Capacity | $ 4,765,000 | $ 4,065,000 |
Borrowing Outstanding | $ 3,798,423 | $ 3,274,508 |
Weighted Average Spread | 2.00% | 2.00% |
Repurchase agreements - Side Car [Member] | ||
Repurchase Agreement Counterparty [Line Items] | ||
Capacity | $ 271,171 | $ 271,171 |
Borrowing Outstanding | $ 221,487 | $ 215,003 |
Weighted Average Spread | 4.51% | 4.50% |
Loan Participants Sold [Member] | ||
Repurchase Agreement Counterparty [Line Items] | ||
Capacity | $ 168,322 | $ 168,322 |
Borrowing Outstanding | $ 168,322 | $ 168,322 |
Weighted Average Spread | 3.75% | 3.79% |
Notes Payable [Member] | ||
Repurchase Agreement Counterparty [Line Items] | ||
Capacity | $ 277,950 | $ 48,000 |
Borrowing Outstanding | $ 146,089 | $ 48,000 |
Weighted Average Spread | 3.35% | 4.00% |
Securities Loaned [Member] | ||
Repurchase Agreement Counterparty [Line Items] | ||
Capacity | $ 760,810 | $ 762,717 |
Borrowing Outstanding | $ 760,810 | $ 762,717 |
Weighted Average Spread | 4.50% | 4.50% |
Debt To Real Estate Owned [Member] | ||
Repurchase Agreement Counterparty [Line Items] | ||
Capacity | $ 290,000 | $ 290,000 |
Borrowing Outstanding | $ 290,000 | $ 290,000 |
Weighted Average Spread | 2.78% | 2.78% |
Repurchase Agreements, Loan P_4
Repurchase Agreements, Loan Participations Sold, Notes Payable and Secured Term Loan, Net - Summary of Portfolio Financings (Parenthetical) (Details) | May 27, 2021 | Mar. 31, 2022 | Dec. 31, 2021 |
London Interbank Offered Rate (LIBOR) | |||
Repurchase Agreement Counterparty [Line Items] | |||
One month LIBOR/ SOFR rate | 0.45% | 0.25% | |
Secured Overnight Financing Rate (SOFR) | |||
Repurchase Agreement Counterparty [Line Items] | |||
One month LIBOR/ SOFR rate | 0.25% | 0.30% |
Repurchase Agreements, Loan P_5
Repurchase Agreements, Loan Participations Sold, Net, Notes Payable, Net, Secured Term Loan, Net and Debt Related to Real Estate Owned, Net - Summary of Repurchase Agreements (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2022 | Dec. 31, 2021 | ||||
Repurchase Agreement Counterparty [Line Items] | |||||
Repurchase agreements | $ 4,019,910 | $ 3,489,511 | |||
Repurchase Agreement [Member] | |||||
Repurchase Agreement Counterparty [Line Items] | |||||
Maximum Capacity | 5,036,171 | 4,336,171 | |||
Repurchase agreements | 4,019,910 | 3,489,511 | |||
Undrawn Capacity | $ 1,016,261 | $ 846,660 | |||
Repurchase Agreement [Member] | JP Morgan Chase Bank NA Main Pool [Member] | |||||
Repurchase Agreement Counterparty [Line Items] | |||||
Initial Maturity | Jun. 29, 2025 | Jun. 29, 2025 | [1] | ||
Fully Extended Maturity (1) | [2] | Jun. 29, 2027 | Jun. 29, 2027 | [1] | |
Maximum Capacity | $ 1,500,000 | $ 1,250,000 | [1] | ||
Repurchase agreements | 1,305,718 | 1,173,280 | [1] | ||
Undrawn Capacity | $ 194,282 | $ 76,720 | [1] | ||
Repurchase Agreement [Member] | JP Morgan Chase Bank NA Side Car [Member] | |||||
Repurchase Agreement Counterparty [Line Items] | |||||
Initial Maturity | [3] | May 27, 2023 | May 27, 2023 | ||
Fully Extended Maturity (1) | [2],[3] | May 27, 2024 | May 27, 2024 | ||
Maximum Capacity | [3] | $ 271,171 | $ 271,171 | ||
Repurchase agreements | [3] | 221,487 | 215,003 | ||
Undrawn Capacity | [3] | $ 49,684 | $ 56,168 | ||
Repurchase Agreement [Member] | Morgan Stanley Bank NA [Member] | |||||
Repurchase Agreement Counterparty [Line Items] | |||||
Initial Maturity | Jan. 26, 2023 | [4] | Jan. 26, 2023 | [5] | |
Fully Extended Maturity (1) | [2] | Jan. 26, 2025 | [4] | Jan. 26, 2024 | [5] |
Maximum Capacity | $ 1,000,000 | [4] | $ 1,000,000 | [5] | |
Repurchase agreements | $ 1,000,000 | [4] | $ 1,000,000 | [5] | |
Repurchase Agreement [Member] | Goldman Sachs Bank USA [Member] | |||||
Repurchase Agreement Counterparty [Line Items] | |||||
Initial Maturity | May 31, 2022 | [6] | May 31, 2022 | [7] | |
Fully Extended Maturity (1) | [2] | May 31, 2023 | [6] | May 31, 2023 | [7] |
Maximum Capacity | $ 750,000 | [6] | $ 750,000 | [7] | |
Repurchase agreements | 428,543 | [6] | 410,551 | [7] | |
Undrawn Capacity | $ 321,457 | [6] | $ 339,449 | [7] | |
Repurchase Agreement [Member] | Barclays Bank PLC [Member] | |||||
Repurchase Agreement Counterparty [Line Items] | |||||
Initial Maturity | Dec. 20, 2022 | Dec. 20, 2022 | |||
Fully Extended Maturity (1) | [2] | Dec. 20, 2025 | Dec. 20, 2025 | ||
Maximum Capacity | $ 500,000 | $ 500,000 | |||
Repurchase agreements | 186,384 | 193,884 | |||
Undrawn Capacity | $ 313,616 | $ 306,116 | |||
Repurchase Agreement [Member] | Deutsche Bank AG New York Branch [Member] | |||||
Repurchase Agreement Counterparty [Line Items] | |||||
Initial Maturity | Jun. 26, 2022 | Jun. 26, 2022 | |||
Fully Extended Maturity (1) | [2] | Jun. 26, 2023 | Jun. 26, 2023 | ||
Maximum Capacity | $ 265,000 | $ 265,000 | |||
Repurchase agreements | 222,583 | 211,372 | |||
Undrawn Capacity | $ 42,417 | $ 53,628 | |||
Repurchase Agreement [Member] | Wells Fargo Bank NA [Member] | |||||
Repurchase Agreement Counterparty [Line Items] | |||||
Initial Maturity | Sep. 29, 2023 | Sep. 29, 2023 | |||
Fully Extended Maturity (1) | [2] | Sep. 29, 2026 | Sep. 29, 2026 | ||
Maximum Capacity | $ 750,000 | $ 300,000 | |||
Repurchase agreements | 655,195 | 285,421 | |||
Undrawn Capacity | $ 94,805 | $ 14,579 | |||
[1] | On January 14, 2022, the facility capacity was increased to $1.5 billion. | ||||
[2] | Facility maturity dates may be extended based on certain conditions being met. | ||||
[3] | This financing has a LIBOR floor of 0.25% | ||||
[4] | One asset on this financing has a SOFR floor of 0.90% and another of 0.15%. | ||||
[5] | One asset on this financing has a LIBOR floor of 1.00% and another of 0.25%. On January 25, 2022, the reference rate on this facility was changed from LIBOR to SOFR, and the fully extended maturity was extended to January 26, 2025. | ||||
[6] | This financing has a LIBOR floor of 0.35% and a SOFR floor of 0.25% with respect to certain transactions where the initial financing date was before May 27, 2021. | ||||
[7] | This financing has a LIBOR floor of 0.35% with respect to transactions where the initial financing date was before May 27, 2021. |
Repurchase Agreements, Loan P_6
Repurchase Agreements, Loan Participations Sold, Net, Notes Payable, Net, Secured Term Loan, Net and Debt Related to Real Estate Owned, Net - Summary of Repurchase Agreements (Parenthetical) (Details) - USD ($) $ in Billions | May 27, 2021 | Mar. 31, 2022 | Dec. 31, 2021 | Jan. 14, 2022 |
Repurchase Agreement Counterparty [Line Items] | ||||
One month LIBOR/ SOFR rate | 0.35% | |||
Outstanding principal balance | $ 1.5 | |||
London Interbank Offered Rate (LIBOR) | ||||
Repurchase Agreement Counterparty [Line Items] | ||||
One month LIBOR/ SOFR rate | 0.45% | 0.25% | ||
London Interbank Offered Rate (LIBOR) | JP Morgan Chase Bank NA Side Car [Member] | ||||
Repurchase Agreement Counterparty [Line Items] | ||||
One month LIBOR/ SOFR rate | 0.25% | |||
Secured Overnight Financing Rate (SOFR) | ||||
Repurchase Agreement Counterparty [Line Items] | ||||
One month LIBOR/ SOFR rate | 0.25% | 0.30% | ||
Secured Overnight Financing Rate (SOFR) | JP Morgan Chase Bank NA Side Car [Member] | ||||
Repurchase Agreement Counterparty [Line Items] | ||||
One month LIBOR/ SOFR rate | 0.15% | |||
Assets | London Interbank Offered Rate (LIBOR) | ||||
Repurchase Agreement Counterparty [Line Items] | ||||
One month LIBOR/ SOFR rate | 1.00% | |||
Assets | Secured Overnight Financing Rate (SOFR) | ||||
Repurchase Agreement Counterparty [Line Items] | ||||
One month LIBOR/ SOFR rate | 0.90% |
Repurchase Agreements, Loan P_7
Repurchase Agreements, Loan Participations Sold, Net, Notes Payable, Net, Secured Term Loan, Net and Debt Related to Real Estate Owned, Net - Summary of Liability Under Repurchase Agreements (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2022 | Dec. 31, 2021 | |||
Repurchase Agreement Counterparty [Line Items] | ||||
Carrying Value | $ 167,875 | $ 167,744 | ||
Loan held by company | $ 423,967 | $ 420,844 | ||
Repurchase Agreements | ||||
Repurchase Agreement Counterparty [Line Items] | ||||
Weighted Average Term(1) | 2 years | [1] | 1 year 10 months 24 days | [2] |
Borrowing Outstanding | $ 4,019,910 | $ 3,489,511 | ||
Carrying Value | 4,019,910 | 3,489,511 | ||
Loan held by company | $ 5,982,911 | $ 5,336,756 | ||
JP Morgan Chase Bank NA Main Pool [Member] | Repurchase Agreements | ||||
Repurchase Agreement Counterparty [Line Items] | ||||
Weighted Average Term(1) | 2 years 1 month 6 days | [1] | 1 year 7 months 6 days | [2] |
Borrowing Outstanding | $ 1,305,718 | $ 1,173,280 | ||
Carrying Value | 1,305,718 | 1,173,280 | ||
Loan held by company | $ 1,877,691 | $ 1,626,719 | ||
JP Morgan Chase Bank NA Side Car [Member] | Repurchase Agreements | ||||
Repurchase Agreement Counterparty [Line Items] | ||||
Weighted Average Term(1) | 9 months 18 days | [1] | 10 months 24 days | [2] |
Borrowing Outstanding | $ 221,487 | $ 215,003 | ||
Carrying Value | 221,487 | 215,003 | ||
Loan held by company | $ 443,645 | $ 436,325 | ||
Morgan Stanley Bank NA [Member] | Repurchase Agreements | ||||
Repurchase Agreement Counterparty [Line Items] | ||||
Weighted Average Term(1) | 2 years | [1] | 2 years 4 months 24 days | [2] |
Borrowing Outstanding | $ 1,000,000 | $ 1,000,000 | ||
Carrying Value | 1,000,000 | 1,000,000 | ||
Loan held by company | $ 1,590,552 | $ 1,709,758 | ||
Goldman Sachs Bank USA [Member] | Repurchase Agreements | ||||
Repurchase Agreement Counterparty [Line Items] | ||||
Weighted Average Term(1) | 1 year 4 months 24 days | [1] | 1 year 3 months 18 days | [2] |
Borrowing Outstanding | $ 428,543 | $ 410,551 | ||
Carrying Value | 428,543 | 410,551 | ||
Loan held by company | $ 612,301 | $ 589,825 | ||
Barclays Bank PLC [Member] | Repurchase Agreements | ||||
Repurchase Agreement Counterparty [Line Items] | ||||
Weighted Average Term(1) | 1 year 8 months 12 days | [1] | 1 year 4 months 24 days | [2] |
Borrowing Outstanding | $ 186,384 | $ 193,884 | ||
Carrying Value | 186,384 | 193,884 | ||
Loan held by company | $ 284,166 | $ 283,716 | ||
Deutsche Bank AG New York Branch [Member] | Repurchase Agreements | ||||
Repurchase Agreement Counterparty [Line Items] | ||||
Weighted Average Term(1) | 2 years | [1] | 2 years 3 months 18 days | [2] |
Borrowing Outstanding | $ 222,583 | $ 211,372 | ||
Carrying Value | 222,583 | 211,372 | ||
Loan held by company | $ 341,680 | $ 327,671 | ||
Wells Fargo Bank NA [Member] | Repurchase Agreements | ||||
Repurchase Agreement Counterparty [Line Items] | ||||
Weighted Average Term(1) | 2 years 9 months 18 days | [1] | 2 years 9 months 18 days | [2] |
Borrowing Outstanding | $ 655,195 | $ 285,421 | ||
Carrying Value | 655,195 | 285,421 | ||
Loan held by company | $ 832,876 | $ 362,742 | ||
[1] | The weighted average term (years) is determined based on the contractual maturity date of the corresponding loans collateralizing each facility. Weighted average is based on borrowing outstanding as of March 31, 2022. | |||
[2] | The weighted average term (years) is determined based on the contractual maturity date of the corresponding loans collateralizing each facility. Weighted average is based on borrowing outstanding as of December 31, 2021. |
Repurchase Agreements, Loan P_8
Repurchase Agreements, Loan Participations Sold, Net, Notes Payable, Net, Secured Term Loan, Net and Debt Related to Real Estate Owned, Net - Additional Information (Details) - USD ($) $ in Thousands | Dec. 02, 2021 | Jun. 02, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | Feb. 08, 2021 | Dec. 01, 2020 | Aug. 09, 2019 |
Repurchase Agreement Counterparty [Line Items] | ||||||||
Secured term loan | $ 325,000 | $ 450,000 | ||||||
One-month SOFR | 4.50% | |||||||
Interest expense | $ 42,164 | $ 47,762 | ||||||
General and administrative expenses | 4,343 | $ 1,189 | ||||||
Secured Term Loan | ||||||||
Repurchase Agreement Counterparty [Line Items] | ||||||||
Principal payments | $ 1,900 | |||||||
Contractual Maturity Date | Aug. 9, 2026 | Aug. 9, 2026 | ||||||
Secured Term Loan | Secured Overnight Financing Rate (SOFR) | Minimum | ||||||||
Repurchase Agreement Counterparty [Line Items] | ||||||||
One-month SOFR | 0.10% | |||||||
Secured Term Loan | Secured Overnight Financing Rate (SOFR) | Maximum | ||||||||
Repurchase Agreement Counterparty [Line Items] | ||||||||
One-month SOFR | 0.50% | |||||||
Repurchase Agreements | ||||||||
Repurchase Agreement Counterparty [Line Items] | ||||||||
Debt instrument repurchase guaranteed amount | $ 1,200 | $ 944,000 | ||||||
Real Estate Investment | ||||||||
Repurchase Agreement Counterparty [Line Items] | ||||||||
Principal payments | $ 10,000 | |||||||
Senior mortgage amount | $ 300,000 | |||||||
Contractual Maturity Date | Feb. 9, 2024 | |||||||
Debt instrument, Fee amount | $ 7,600 | |||||||
Interest expense | 6,300 | |||||||
General and administrative expenses | 1,100 | |||||||
Debt issuance costs | $ 200 |
Repurchase Agreements, Loan P_9
Repurchase Agreements, Loan Participations Sold, Net, Notes Payable, Net, Secured Term Loan, Net and Debt Related to Real Estate Owned, Net - Summary of Loan Participations Sold (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2022 | Dec. 31, 2021 | ||
Loan Participations Sold [Line Items] | |||
Borrowing Outstanding | $ 168,322 | $ 168,322 | |
Carrying Value | 167,875 | 167,744 | |
Loan held by company | $ 423,967 | $ 420,844 | |
Variable Loan | |||
Loan Participations Sold [Line Items] | |||
Contractual Maturity Date | [1] | Aug. 1, 2022 | Aug. 1, 2022 |
Maximum Extension Date | [1] | Aug. 1, 2023 | Aug. 1, 2023 |
Borrowing Outstanding | [1] | $ 148,322 | $ 148,322 |
Carrying Value | [1] | 148,213 | 148,133 |
Loan held by company | [1] | $ 291,063 | $ 290,783 |
Fixed Loan | |||
Loan Participations Sold [Line Items] | |||
Contractual Maturity Date | Dec. 31, 2024 | Dec. 31, 2024 | |
Maximum Extension Date | Dec. 31, 2025 | Dec. 31, 2025 | |
Borrowing Outstanding | $ 20,000 | $ 20,000 | |
Carrying Value | 19,662 | 19,611 | |
Loan held by company | $ 132,904 | $ 130,061 | |
[1] | This financing has a LIBOR floor of 1.85% |
Repurchase Agreements, Loan _10
Repurchase Agreements, Loan Participations Sold, Net, Notes Payable, Net, Secured Term Loan, Net and Debt Related to Real Estate Owned, Net - Summary of Loan Participations Sold (Parenthetical) (Details) - London Interbank Offered Rate (LIBOR) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Loan Participations Sold [Line Items] | ||
One month LIBOR/ SOFR rate | 0.45% | 0.25% |
Variable Loan | ||
Loan Participations Sold [Line Items] | ||
One month LIBOR/ SOFR rate | 1.85% | 1.85% |
Repurchase Agreements, Loan _11
Repurchase Agreements, Loan Participations Sold, Net, Notes Payable, Net, Secured Term Loan, Net and Debt Related to Real Estate Owned, Net - Summary of Notes Payable (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2022 | Dec. 31, 2021 | ||||
Debt Instrument [Line Items] | |||||
Carrying Value | $ 167,875 | $ 167,744 | |||
Loan held by company | $ 423,967 | $ 420,844 | |||
Notes Payable One | |||||
Debt Instrument [Line Items] | |||||
Contractual Maturity Date | [1] | Jul. 5, 2022 | |||
Maximum Extension Date | [1] | Jan. 4, 2023 | |||
Borrowing Outstanding | [1] | $ 48,000 | |||
Carrying Value | [1] | 47,921 | |||
Loan held by company | [1],[2] | $ 117,301 | |||
Notes Payable Two | |||||
Debt Instrument [Line Items] | |||||
Contractual Maturity Date | [3] | Dec. 31, 2024 | |||
Maximum Extension Date | [3] | Dec. 31, 2025 | |||
Borrowing Outstanding | [3] | $ 94,322 | |||
Carrying Value | [3] | 92,840 | |||
Loan held by company | [2],[3] | $ 132,904 | |||
Notes Payable Three | |||||
Debt Instrument [Line Items] | |||||
Contractual Maturity Date | [4] | Feb. 2, 2026 | |||
Maximum Extension Date | [4] | Feb. 2, 2027 | |||
Borrowing Outstanding | [4] | $ 3,767 | |||
Carrying Value | [4] | 2,766 | |||
Loan held by company | [2],[4] | 3,781 | |||
Notes Payable [Member] | |||||
Debt Instrument [Line Items] | |||||
Contractual Maturity Date | [5] | Jan. 4, 2022 | |||
Maximum Extension Date | [5] | Jan. 4, 2022 | |||
Borrowing Outstanding | 146,089 | $ 48,000 | [5] | ||
Carrying Value | 143,527 | 48,000 | [5] | ||
Loan held by company | $ 253,986 | [2] | $ 116,512 | [5],[6] | |
[1] | This financing has a LIBOR floor of 2.43%. This financing was fully satisfied in April 2022. | ||||
[2] | Includes all cash reserve balances held by the servicer. | ||||
[3] | This financing has a SOFR floor of 1.75%. | ||||
[4] | This financing has a SOFR floor of 0.32%. | ||||
[5] | In January 2022, the initial maturity was extended to July 5, 2022 and the maximum maturity date was extended to January 4, 2023. This financing has a LIBOR floor of 2.43%. | ||||
[6] | Includes all reserve balances held by servicer. |
Repurchase Agreements, Loan _12
Repurchase Agreements, Loan Participations Sold, Net, Notes Payable, Net, Secured Term Loan, Net and Debt Related to Real Estate Owned, Net - Summary of Notes Payable (Parenthetical) (Details) | May 27, 2021 | Mar. 31, 2022 | Dec. 31, 2021 |
London Interbank Offered Rate (LIBOR) | |||
Debt Instrument [Line Items] | |||
One month LIBOR/ SOFR rate | 0.45% | 0.25% | |
Secured Overnight Financing Rate (SOFR) | |||
Debt Instrument [Line Items] | |||
One month LIBOR/ SOFR rate | 0.25% | 0.30% | |
Notes Payable One | London Interbank Offered Rate (LIBOR) | |||
Debt Instrument [Line Items] | |||
One month LIBOR/ SOFR rate | 2.43% | ||
Notes Payable Two | Secured Overnight Financing Rate (SOFR) | |||
Debt Instrument [Line Items] | |||
One month LIBOR/ SOFR rate | 1.75% | ||
Notes Payable Three | Secured Overnight Financing Rate (SOFR) | |||
Debt Instrument [Line Items] | |||
One month LIBOR/ SOFR rate | 0.32% | ||
Notes Payable [Member] | London Interbank Offered Rate (LIBOR) | |||
Debt Instrument [Line Items] | |||
One month LIBOR/ SOFR rate | 2.43% |
Repurchase Agreements, Loan _13
Repurchase Agreements, Loan Participations Sold, Net, Notes Payable, Net, Secured Term Loan, Net and Debt Related to Real Estate Owned, Net - Summary of Secured Term Loan (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2022 | Dec. 31, 2021 | |||
Secured Term Loan [Line Items] | ||||
Carrying Value | $ 167,875 | $ 167,744 | ||
Secured Term Loan | ||||
Secured Term Loan [Line Items] | ||||
Contractual Maturity Date | Aug. 9, 2026 | Aug. 9, 2026 | ||
Stated | S + 4.50% | [1] | S + 4.50% | [2] |
Debt Instrument Interest Rate | 5.00% | 5.00% | ||
Borrowing Outstanding | $ 760,810 | $ 762,717 | ||
Carrying Value | $ 738,928 | $ 739,762 | ||
[1] | One-month SOFR at March 31, 2022 was 0.30% The secured term loan has a floor equal to the greater of one-month SOFR plus 0.10% and 0.50%. | |||
[2] | One-month SOFR at December 31, 2021 was 0.05%. Following the modification on December 1, 2021, the secured term loan has a floor equal to the greater of one-month SOFR plus 0.10% and 0.50%. |
Repurchase Agreements, Loan _14
Repurchase Agreements, Loan Participations Sold, Net, Notes Payable, Net, Secured Term Loan, Net and Debt Related to Real Estate Owned, Net - Summary of Secured Term Loan (Parenthetical) (Details) - Secured Overnight Financing Rate (SOFR) | May 27, 2021 | Dec. 31, 2020 | Mar. 31, 2022 | Dec. 31, 2021 |
Secured Term Loan [Line Items] | ||||
One month LIBOR/ SOFR rate | 0.25% | 0.30% | ||
Secured Term Loan | ||||
Secured Term Loan [Line Items] | ||||
One month LIBOR/ SOFR rate | 0.05% | 0.30% | ||
Secured Term Loan | Minimum | ||||
Secured Term Loan [Line Items] | ||||
One month LIBOR/ SOFR rate | 0.10% | 0.10% | ||
Secured Term Loan | Maximum | ||||
Secured Term Loan [Line Items] | ||||
One month LIBOR/ SOFR rate | 0.50% | 0.50% |
Repurchase Agreements, Loan _15
Repurchase Agreements, Loan Participations Sold, Net, Notes Payable, Net, Secured Term Loan, Net and Debt Related to Real Estate Owned, Net - Summary of Debt Related To Real Estate Owned (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2022 | Dec. 31, 2021 | |||
Debt Instrument Real Estate Owned Net [Line Items] | ||||
Carrying Value | $ 167,875 | $ 167,744 | ||
Real Estate Investment | ||||
Debt Instrument Real Estate Owned Net [Line Items] | ||||
Contractual Maturity Date | Feb. 9, 2024 | Feb. 9, 2024 | ||
Stated | L + 2.78% | [1] | L + 2.78% | [2] |
Debt Instrument Interest Rate | 3.53% | 3.53% | ||
Borrowing Outstanding | $ 290,000 | $ 290,000 | ||
Carrying Value | $ 289,829 | $ 289,806 | ||
[1] | One-month LIBOR at March 31, 2022 was 0.45%. This financing has a LIBOR floor of 0.75%. | |||
[2] | One-month LIBOR at December 31, 2021 was 0.10%. This financing has a LIBOR floor of 0.75%. |
Repurchase Agreements, Loan _16
Repurchase Agreements, Loan Participations Sold, Net, Notes Payable, Net, Secured Term Loan, Net and Debt Related to Real Estate Owned, Net - Summary of Debt Related To Real Estate Owned (Parenthetical) (Details) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
London Interbank Offered Rate (LIBOR) | ||
Debt Instrument Real Estate Owned Net [Line Items] | ||
One month LIBOR/ SOFR rate | 0.45% | 0.25% |
Real Estate Investment | One Month L I B O R | ||
Debt Instrument Real Estate Owned Net [Line Items] | ||
One month LIBOR/ SOFR rate | 0.45% | 0.10% |
Real Estate Investment | London Interbank Offered Rate (LIBOR) | ||
Debt Instrument Real Estate Owned Net [Line Items] | ||
One month LIBOR/ SOFR rate | 0.75% | 0.75% |
Repurchase Agreements, Loan _17
Repurchase Agreements, Loan Participations Sold, Net, Notes Payable, Net, Secured Term Loan, Net and Debt Related to Real Estate Owned, Net - Summary of Interest Expense and Amortization (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Securities Loaned And Securities Sold Under Agreement To Repurchase Gross Including Not Subject To Master Netting Arrangement [Abstract] | ||
Interest on secured financings | $ 25,411 | $ 29,702 |
Interest on secured term loan | 9,559 | 11,553 |
Interest on Debt related to real estate owned | 2,584 | 1,475 |
Amortization of financing costs | 4,610 | 5,032 |
Total interest and related expense | $ 42,164 | $ 47,762 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Financial Instruments Measured at Carrying And Estimated Fair Value (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Loans receivable held-for-investment, net | $ 6,972,638 | $ 6,340,295 |
Interests in loans receivable held-for- investment, net | 153,236 | 161,850 |
Repurchase agreements | 4,019,910 | 3,489,511 |
Loan participations sold, net | 167,875 | 167,744 |
Notes payable, net | 143,527 | 48,000 |
Secured term loan, net | 738,928 | 739,762 |
Debt related to real estate owned, net | 289,829 | 289,806 |
Unpaid Principal Balance [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Loans receivable held-for-investment, net | 7,080,932 | 6,441,238 |
Interests in loans receivable held-for- investment, net | 152,841 | 161,566 |
Repurchase agreements | 4,019,910 | 3,489,511 |
Loan participations sold, net | 168,322 | 168,322 |
Notes payable, net | 146,089 | 48,000 |
Secured term loan, net | 760,810 | 762,717 |
Debt related to real estate owned, net | 290,000 | 290,000 |
Fair Value [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Loans receivable held-for-investment, net | 7,069,599 | 6,434,157 |
Interests in loans receivable held-for- investment, net | 152,841 | 161,883 |
Repurchase agreements | 4,019,910 | 3,484,834 |
Loan participations sold, net | 168,228 | 168,738 |
Notes payable, net | 146,612 | 48,000 |
Secured term loan, net | 757,957 | 762,717 |
Debt related to real estate owned, net | 281,706 | 281,723 |
Level 3 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Loans receivable held-for-investment, net | 7,069,599 | 6,434,157 |
Interests in loans receivable held-for- investment, net | 152,841 | 161,883 |
Repurchase agreements | 4,019,910 | 3,484,834 |
Loan participations sold, net | 168,228 | 168,738 |
Notes payable, net | 146,612 | 48,000 |
Secured term loan, net | 757,957 | 762,717 |
Debt related to real estate owned, net | $ 281,706 | $ 281,723 |
Equity - Additional Information
Equity - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | 4 Months Ended | |||
Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | |
Class Of Stock [Line Items] | ||||
Common stock authorized | 500,000,000 | 500,000,000 | ||
Common stock par value | $ 0.01 | $ 0.01 | ||
Common stock, shares issued | 140,055,714 | 140,055,714 | ||
Common stock outstanding | 139,653,799 | 139,840,088 | ||
Common Stock [Member] | ||||
Class Of Stock [Line Items] | ||||
Common stock authorized | 500,000,000 | |||
Common stock par value | $ 0.01 | |||
Common stock, shares issued | 140,055,714 | 140,055,714 | ||
Common stock outstanding | 139,653,799 | 139,840,088 | 132,848,720 | 132,848,720 |
Amount of common stock shares purchased in open market | $ 25 | |||
Stock Repurchased During Period, Shares | 401,915 | |||
Average price per share | $ 16.87 | |||
Repurchase value | $ 6.8 |
Equity -Schedule of Common Stoc
Equity -Schedule of Common Stock Issued and Outstanding (Details) | 3 Months Ended |
Mar. 31, 2022shares | |
Class Of Stock [Line Items] | |
Beginning balance | 139,840,088 |
Ending balance | 139,653,799 |
Common Stock [Member] | |
Class Of Stock [Line Items] | |
Beginning balance | 139,840,088 |
Repurchase of common shares | (186,289) |
Ending balance | 139,653,799 |
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 | ||
Mar. 31, 2022 | Mar. 31, 2021 | ||
Class Of Stock [Line Items] | |||
Dividends declared - common stock | $ 51,672 | ||
Dividends declared - preferred stock | $ 4 | ||
Record Date - common stock | Mar. 31, 2022 | Mar. 19, 2021 | |
Payment Date - common stock | Apr. 15, 2022 | Apr. 1, 2021 | |
Common Stock [Member] | |||
Class Of Stock [Line Items] | |||
Dividends declared - common stock | $ 51,672 | $ 50,000 | |
Dividends declared - common stock per share | $ 0.37 | $ 0.37 | |
Preferred Stock [Member] | |||
Class Of Stock [Line Items] | |||
Dividends declared - preferred stock | [1] | $ 4 | |
Dividends declared - preferred stock per share | [1] | $ 0.03 | |
[1] | Includes 125 preferred units issued at a price of $1,000 per unit and entitled to a 12.5% dividend paid semi-annually that were redeemed on December 15, 2021 at a price of $1,000 per unit. |
Equity - Summary of Dividends_2
Equity - Summary of Dividends Declared For Common And Preferred Stock (Parenthetical) (Details) | Dec. 15, 2021$ / sharesshares |
Equity [Abstract] | |
Preferred stock, shares issued | shares | 125 |
Preferred stock, per shares | $ 1,000 |
Preferred stock dividend rate | 12.50% |
Preferred stock, redemption price per share | $ 1,000 |
Earnings per Share - Additional
Earnings per Share - Additional Information (Details) - shares | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Earnings Per Share [Abstract] | ||
Dilutive securities | 0 | 0 |
Earnings per Share - Schedule o
Earnings per Share - Schedule of Basic and Diluted Earning per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Earnings Per Share [Abstract] | ||
Net income attributable to Claros Mortgage Trust, Inc. common stockholders | $ 29,412 | $ 58,608 |
Basic and diluted | 139,712,501 | 133,609,126 |
Basic and diluted | $ 0.21 | $ 0.44 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Related Party Transaction [Line Items] | |||
Management agreement expiration date | Aug. 25, 2025 | ||
Annual base management fee percentage | 1.50% | ||
Base management fee payable to affiliate | $ 9,807,000 | $ 9,983,000 | |
Management fee, description | Effective October 1, 2015, the Manager earns a base management fee in an amount equal to 1.50% per annum of Stockholders’ Equity. Management fees are reduced by our pro rata share of any management fees and incentive fees (if incentive fees are not incurred by us) paid to the Manager by CMTG/TT. Management fees are paid quarterly, in arrears. Management fees of $9.8 million and $10.0 million were accrued and were included in management fee payable – affiliate, in the consolidated balance sheets at March 31, 2022 and December 31, 2021. | ||
Incentive fee rate | 20.00% | ||
Minimum percentage of incentive fee to be paid in return on stockholders’ equity | 7.00% | ||
Incentive fees, description | The Manager is entitled to an incentive fee equal to 20% of the excess of our Core Earnings on a rolling four-quarter basis, as defined in the Management Agreement, over a 7.00% return on Stockholders’ Equity, as defined in the Management Agreement of the Company. Incentive fees are reduced by our pro rata share of any incentive fees paid to the Manager by CMTG/TT. | ||
Incentive fee payable to affiliate | $ 0 | 0 | |
Termination fee, description | If we elect to terminate the Management Agreement, we are required to pay the Manager a termination fee equal to three times the sum of the average total annual amount of management fees and the average annual incentive fee paid by us over the prior two years. | ||
Outstanding principal balance | $ 64,400,000 | $ 54,000,000 | |
Loan commitment | $ 141,100,000 | ||
Affiliate Shareholder | |||
Related Party Transaction [Line Items] | |||
Common Stock Outstanding | 10.80% | ||
Reimbursements | |||
Related Party Transaction [Line Items] | |||
General and administrative expense | $ 100,000 | $ 0 | |
CMTG/TT | |||
Related Party Transaction [Line Items] | |||
Incentive fee rate | 3.33% | ||
Minimum percentage of incentive fee to be paid in return on stockholders’ equity | 7.00% |
Related Party Transactions - Su
Related Party Transactions - Summary of Management and Incentive Fees (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Related Party Transactions [Abstract] | ||
Management fees - affiliate | $ 9,807 | $ 9,626 |
Equity Compensation - Additiona
Equity Compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | Apr. 04, 2021 | Apr. 04, 2019 | Jan. 01, 2019 | Mar. 30, 2016 | Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Equity-based compensation | $ 0 | |||||||
Time-based Restricted Stock Units | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Shares granted | 877,498 | |||||||
Weighted average grant-date fair value | $ 20 | |||||||
Shares forfeitures | 292,731 | |||||||
Shares vested | 584,767 | |||||||
Time-based Restricted Stock Units | Other Income | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Equity-based compensation | $ 5,900 | |||||||
Performance-based Restricted Stock Units | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Equity-based compensation | $ 1,600 | |||||||
Shares granted | 1,622,499 | |||||||
Weighted average grant-date fair value | $ 20 | $ 20 | ||||||
Shares forfeitures | 525,206 | |||||||
Shares vested | 1,097,293 | |||||||
Vesting period (in years) | 3 years | |||||||
Minimum shareholder return percentage | 18.00% | |||||||
Shareholder return per share | $ 19.84 | |||||||
Dividend Equivalents Payable | $ 4,900 | |||||||
Maximum | Performance-based Restricted Stock Units | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Vesting percentage | 100.00% | |||||||
Minimum | Performance-based Restricted Stock Units | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Vesting percentage | 0.00% | |||||||
2016 Incentive Award Plan | Maximum | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Maximum number of shares issued under the plan | 8,281,594 |
Equity Compensation - Summary o
Equity Compensation - Summary of Restricted Stock Units Activity (Details) | 3 Months Ended |
Mar. 31, 2021$ / sharesshares | |
Time-based Restricted Stock Units | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of Restricted Shares, Forfeited/cancelled | (292,731) |
Performance-based Restricted Stock Units | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of Restricted Shares, Unvested beginning balance | 1,622,499 |
Number of Restricted Shares, Forfeited/cancelled | (525,206) |
Number of Restricted Shares, Unvested ending balance | 1,097,293 |
Grant Date Fair Value Per Share, Unvested beginning balance | $ / shares | $ 20 |
Number of Restricted Shares, Forfeited/cancelled | $ / shares | 20 |
Grant Date Fair Value Per Share, Unvested ending balance | $ / shares | $ 20 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Schedule Of Income Loss Before Income Taxes [Line Items] | |||
Federal statutory income tax, combined rate | 35.44% | ||
Uncertain tax positions | $ 0 | $ 0 | |
TRS [Member] | |||
Schedule Of Income Loss Before Income Taxes [Line Items] | |||
Percentage of REIT taxable income | 90.00% | 90.00% | |
Percentage of REITs flexibility to hold up to total assets | 20.00% | ||
Deferred income tax benefit | $ 0 | $ 4,200 | |
Net deferred tax liabilities | $ 0 | $ 0 | |
Federal statutory income tax rate, percent | 21.00% | 14.44% | |
Effective tax rate, percent | 0.00% | (7.68%) | |
Net operating loss carryforward | $ 38,100,000 | ||
Net operating loss carry forward period | 20 years | ||
Valuation allowance | $ 17,500,000 |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Income Tax Disclosure [Abstract] | ||
Investment basis difference in real estate owned | $ 4,000 | $ 4,018 |
Net operating loss carryforward | 13,490 | 10,627 |
Deferred tax assets, gross | 17,490 | 14,645 |
Valuation allowance | $ (17,490) | $ (14,645) |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Loss Contingencies [Line Items] | ||
Return of capital distribution from CMTG/CN Mortgage REIT LLC | $ 123.2 | $ 111.1 |
Loan Commitments Refunded | 1,500 | 1,100 |
Existing Secured Financing Commitments | $ 564.6 | $ 584.3 |
Maximum | ||
Loss Contingencies [Line Items] | ||
Lease Expiration Period | 5 years | 5 years |
Claros Mortgage Trust | ||
Loss Contingencies [Line Items] | ||
Commitment Interest | 51.00% | |
Commitment Amount | $ 124.9 | |
Loan Repayment Period | 6 months | |
Company Contribution Amount | $ 162.7 | $ 162.1 |
Remaining capital commitment | $ 73.2 | $ 73.8 |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of Contractual Maturity Payment (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Commitments And Contingencies Disclosure [Abstract] | ||
2022 | $ 988,575 | |
2023 | 786,245 | |
2024 | 1,993,750 | |
2025 | 709,906 | |
2026 | 906,655 | |
Long-term Debt | $ 5,385,131 | $ 4,758,550 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | Apr. 15, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
Subsequent Event [Line Items] | |||
Loan held by company | $ 423,967 | $ 420,844 | |
Net investment per share | $ 0.22 | ||
Repayment of loans unpaid principal amount | $ 346,000 | ||
Minimum | |||
Subsequent Event [Line Items] | |||
Loan portfolio on non-accrual declined percentage | 2.20% | ||
Maximum | |||
Subsequent Event [Line Items] | |||
Loan portfolio on non-accrual declined percentage | 3.80% | ||
Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Exercised option carrying value | $ 116,200 | ||
Loan held by company | 147,800 | ||
Gain on sale of investments, net | 30,100 | ||
Aggregate loan commitments at floating rate | 392,700 | ||
Aggregate loan commitments at floating rate | $ 299,800 |