Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2022 | Aug. 02, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-38377 | |
Entity Registrant Name | BRIGHTSPIRE CAPITAL, INC. | |
Entity Incorporation, State or Country Code | MD | |
Entity Tax Identification Number | 38-4046290 | |
Entity Address, Address Line One | 590 Madison Avenue | |
Entity Address, Address Line Two | 33rd Floor | |
Entity Address, City or Town | New York | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10022 | |
City Area Code | 212 | |
Local Phone Number | 547-2631 | |
Title of 12(b) Security | Class A common stock, par value $0.01 per share | |
Trading Symbol | BRSP | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 128,964,934 | |
Entity Central Index Key | 0001717547 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --12-31 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Assets | ||
Cash and cash equivalents | $ 317,742 | $ 259,722 |
Restricted cash | 91,674 | 86,841 |
Loans held for investment | 3,833,523 | 3,485,607 |
Current expected credit loss reserve | (44,378) | (36,598) |
Loans held for investment, net | 3,789,145 | 3,449,009 |
Real estate, net | 742,079 | 783,211 |
Receivables, net | 52,582 | 54,499 |
Deferred leasing costs and intangible assets, net | 58,353 | 64,981 |
Assets held for sale | 0 | 44,345 |
Other assets ($4,406 and $4,406 at fair value, respectively) | 70,182 | 82,451 |
Mortgage loans held in securitization trusts, at fair value | 718,335 | 813,310 |
Total assets | 5,840,092 | 5,638,369 |
Liabilities | ||
Securitization bonds payable, net | 1,364,906 | 1,500,899 |
Mortgage and other notes payable, net | 658,857 | 760,583 |
Credit facilities | 1,487,567 | 905,122 |
Accrued and other liabilities | 86,493 | 99,814 |
Intangible liabilities, net | 5,532 | 6,224 |
Escrow deposits payable | 75,414 | 73,344 |
Dividends payable | 25,793 | 23,912 |
Mortgage obligations issued by securitization trusts, at fair value | 682,181 | 777,156 |
Total liabilities | 4,386,743 | 4,147,054 |
Commitments and contingencies | ||
Stockholders’ equity | ||
Preferred stock, $0.01 par value, 50,000,000 shares authorized, no shares issued and outstanding as of June 30, 2022 and December 31, 2021, respectively | 0 | 0 |
Common stock | 1,290 | 1,298 |
Additional paid-in capital | 2,850,001 | 2,855,766 |
Accumulated deficit | (1,398,773) | (1,410,562) |
Accumulated other comprehensive income | (510) | 8,786 |
Total stockholders’ equity | 1,452,008 | 1,455,288 |
Noncontrolling interests in investment entities | 1,341 | 1,472 |
Noncontrolling interests in the Operating Partnership | 0 | 34,555 |
Total equity | 1,453,349 | 1,491,315 |
Total liabilities and equity | 5,840,092 | 5,638,369 |
Primary beneficiary | ||
Assets | ||
Cash and cash equivalents | 4,879 | 6,720 |
Restricted cash | 11,703 | 9,658 |
Loans held for investment, net | 1,628,192 | 1,781,522 |
Real estate, net | 168,788 | 170,201 |
Receivables, net | 28,424 | 12,808 |
Deferred leasing costs and intangible assets, net | 12,806 | 15,105 |
Other assets ($4,406 and $4,406 at fair value, respectively) | 21,541 | 38,101 |
Mortgage loans held in securitization trusts, at fair value | 718,335 | 813,310 |
Total assets | 2,594,668 | 2,847,425 |
Liabilities | ||
Securitization bonds payable, net | 1,364,906 | 1,500,899 |
Mortgage and other notes payable, net | 175,837 | 177,373 |
Accrued and other liabilities | 8,271 | 6,768 |
Intangible liabilities, net | 5,532 | 6,224 |
Escrow deposits payable | 2,935 | 3,484 |
Mortgage obligations issued by securitization trusts, at fair value | 682,181 | 777,156 |
Total liabilities | $ 2,239,662 | $ 2,471,904 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Other assets, at fair value | $ 4,406 | $ 4,406 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Class A | ||
Common stock, shares authorized (in shares) | 950,000,000 | 950,000,000 |
Common stock, shares issued (in shares) | 128,964,934 | 129,769,365 |
Common stock, shares outstanding (in shares) | 128,964,934 | 129,769,365 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Net interest income | ||||
Interest income | $ 53,083 | $ 37,921 | $ 97,654 | $ 72,295 |
Interest expense | (21,455) | (12,993) | (37,527) | (25,488) |
Interest income on mortgage loans held in securitization trusts | 9,721 | 11,390 | 19,095 | 31,079 |
Interest expense on mortgage obligations issued by securitization trusts | (8,586) | (10,111) | (17,074) | (27,447) |
Net interest income | 32,763 | 26,207 | 62,148 | 50,439 |
Property and other income | ||||
Property operating income | 21,781 | 24,799 | 45,948 | 50,521 |
Other income | 787 | 1,110 | 1,063 | 1,155 |
Total property and other income | 22,568 | 25,909 | 47,011 | 51,676 |
Expenses | ||||
Management fee expense | 0 | 2,338 | 0 | 9,596 |
Property operating expense | 5,266 | 6,758 | 11,990 | 14,869 |
Transaction, investment and servicing expense | 982 | 644 | 2,106 | 2,932 |
Interest expense on real estate | 7,117 | 7,777 | 14,673 | 16,410 |
Depreciation and amortization | 8,720 | 9,994 | 17,314 | 19,533 |
Increase (decrease) of current expected credit loss reserve | 10,143 | 1,200 | 9,277 | 4,425 |
Compensation and benefits | 8,269 | 10,053 | 16,494 | 16,839 |
Operating expense | 4,070 | 4,000 | 8,419 | 9,809 |
Restructuring charges | 0 | 150 | 0 | 109,321 |
Total expenses | 44,567 | 42,914 | 80,273 | 203,734 |
Other income | ||||
Unrealized gain on mortgage loans and obligations held in securitization trusts, net | 0 | 19,516 | 0 | 28,154 |
Realized loss on mortgage loans and obligations held in securitization trusts, net | 0 | (19,516) | 0 | (19,516) |
Other gain (loss), net | 24,332 | 836 | 34,620 | 9,203 |
Income (loss) before equity in earnings of unconsolidated ventures and income taxes | 35,096 | 10,038 | 63,506 | (83,778) |
Equity in earnings (loss) of unconsolidated ventures | 0 | (33,788) | 25 | (36,266) |
Income tax benefit (expense) | (465) | 134 | (501) | 1,935 |
Net income (loss) | 34,631 | (23,616) | 63,030 | (118,109) |
Net (income) loss attributable to noncontrolling interests: | ||||
Investment entities | 15 | 3,459 | (7) | 3,685 |
Operating Partnership | (359) | 437 | (1,013) | 2,390 |
Net income (loss) attributable to BrightSpire Capital, Inc. common stockholders | $ 34,287 | $ (19,720) | $ 62,010 | $ (112,034) |
Net income (loss) per common share - basic (in dollars per share) | $ 0.26 | $ (0.15) | $ 0.48 | $ (0.87) |
Net income (loss) per common share - diluted (in dollars per share) | $ 0.26 | $ (0.15) | $ 0.47 | $ (0.87) |
Weighted average shares of common stock outstanding - basic (in shares) | 127,756,000 | 128,298,000 | 128,052,000 | 128,297,000 |
Weighted average shares of common stock outstanding - diluted (in shares) | 129,595,000 | 128,298,000 | 129,669,000 | 128,297,000 |
CONSOLIDATED STATEMENTS OF OP_2
CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Statement [Abstract] | ||||
Share-based compensation expense | $ 2,286 | $ 5,443 | $ 4,166 | $ 9,705 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Net income (loss) | $ 34,631 | $ (23,616) | $ 63,030 | $ (118,109) |
Other comprehensive income (loss) | ||||
Unrealized loss on real estate securities, available for sale | 0 | 0 | 0 | (200) |
Foreign currency translation gain (loss) | (9,810) | 2,213 | (9,134) | (6,319) |
Total other comprehensive income (loss) | (9,810) | 2,213 | (9,134) | (6,519) |
Comprehensive income (loss) | 24,821 | (21,403) | 53,896 | (124,628) |
Comprehensive (income) loss attributable to noncontrolling interests: | ||||
Comprehensive income (loss) attributable to common stockholders | 24,331 | (17,754) | 52,714 | (117,809) |
Investment entities | ||||
Net income (loss) | (15) | (3,459) | ||
Other comprehensive income (loss) | ||||
Total other comprehensive income (loss) | 336 | |||
Comprehensive (income) loss attributable to noncontrolling interests: | ||||
Comprehensive (income) loss attributable to noncontrolling interests: | 15 | 3,123 | (7) | 4,125 |
Operating Partnership | ||||
Net income (loss) | 359 | (437) | ||
Other comprehensive income (loss) | ||||
Total other comprehensive income (loss) | 146 | (89) | ||
Comprehensive (income) loss attributable to noncontrolling interests: | ||||
Comprehensive (income) loss attributable to noncontrolling interests: | $ (505) | $ 526 | $ (1,175) | $ 2,694 |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Thousands | Total | Total Company’s Stockholders’ Equity | Common Stock | Common Stock Class A | Additional Paid-in Capital | Retained Earnings (Accumulated Deficit) | Accumulated Other Comprehensive Income | Noncontrolling Interests in Investment Entities | Noncontrolling Interests in the Operating Partnership |
Beginning balance (in shares) at Dec. 31, 2020 | 128,565,000 | ||||||||
Beginning balance at Dec. 31, 2020 | $ 1,958,678 | $ 1,665,673 | $ 1,286 | $ 2,844,023 | $ (1,234,224) | $ 54,588 | $ 253,225 | $ 39,780 | |
Increase (Decrease) in Stockholders' Equity | |||||||||
Contributions | 1,384 | 1,384 | |||||||
Distributions | (10,794) | (10,794) | |||||||
Issuance and amortization of equity-based compensation (in shares) | 1,420,000 | ||||||||
Issuance and amortization of equity-based compensation | 4,262 | 4,262 | $ 14 | 4,248 | |||||
Other comprehensive income/(loss) | (8,733) | (7,742) | (7,742) | (776) | (215) | ||||
Dividends and distributions declared | (13,296) | (12,988) | (12,988) | (308) | |||||
Shares canceled for tax withholding on vested stock awards (in shares) | (136,000) | ||||||||
Shares canceled for tax withholding on vested stock awards | (1,309) | (1,309) | $ (2) | (1,307) | |||||
Reallocation of equity | 0 | 521 | 521 | (521) | |||||
Net income (loss) | (94,493) | (92,314) | (92,314) | (226) | (1,953) | ||||
Ending balance (in shares) at Mar. 31, 2021 | 129,849,000 | ||||||||
Ending balance at Mar. 31, 2021 | $ 1,835,699 | 1,556,103 | $ 1,298 | 2,847,485 | (1,339,526) | 46,846 | 242,813 | 36,783 | |
Increase (Decrease) in Stockholders' Equity | |||||||||
Dividends and distributions declared per share of common stock (in dollars per share) | $ 0.10 | ||||||||
Beginning balance (in shares) at Dec. 31, 2020 | 128,565,000 | ||||||||
Beginning balance at Dec. 31, 2020 | $ 1,958,678 | 1,665,673 | $ 1,286 | 2,844,023 | (1,234,224) | 54,588 | 253,225 | 39,780 | |
Increase (Decrease) in Stockholders' Equity | |||||||||
Other comprehensive income/(loss) | (6,519) | ||||||||
Net income (loss) | (118,109) | ||||||||
Ending balance (in shares) at Jun. 30, 2021 | 129,759,000 | ||||||||
Ending balance at Jun. 30, 2021 | 1,787,691 | 1,524,614 | $ 1,298 | 2,851,916 | (1,377,412) | 48,812 | 227,380 | 35,697 | |
Beginning balance (in shares) at Mar. 31, 2021 | 129,849,000 | ||||||||
Beginning balance at Mar. 31, 2021 | 1,835,699 | 1,556,103 | $ 1,298 | 2,847,485 | (1,339,526) | 46,846 | 242,813 | 36,783 | |
Increase (Decrease) in Stockholders' Equity | |||||||||
Contributions | 838 | 838 | |||||||
Distributions | (13,148) | (13,148) | |||||||
Issuance and amortization of equity-based compensation (in shares) | 41,000 | ||||||||
Issuance and amortization of equity-based compensation | 5,443 | 5,443 | 5,443 | ||||||
Other comprehensive income/(loss) | 2,213 | 1,966 | 1,966 | 336 | (89) | ||||
Dividends and distributions declared | (18,597) | (18,166) | (18,166) | (431) | |||||
Shares canceled for tax withholding on vested stock awards (in shares) | (131,000) | ||||||||
Shares canceled for tax withholding on vested stock awards | (1,141) | (1,141) | (1,141) | ||||||
Reallocation of equity | 0 | 129 | 129 | (129) | |||||
Net income (loss) | (23,616) | (19,720) | (19,720) | (3,459) | (437) | ||||
Ending balance (in shares) at Jun. 30, 2021 | 129,759,000 | ||||||||
Ending balance at Jun. 30, 2021 | $ 1,787,691 | 1,524,614 | $ 1,298 | 2,851,916 | (1,377,412) | 48,812 | 227,380 | 35,697 | |
Increase (Decrease) in Stockholders' Equity | |||||||||
Dividends and distributions declared per share of common stock (in dollars per share) | $ 0.14 | ||||||||
Beginning balance (in shares) at Dec. 31, 2021 | 129,769,000 | ||||||||
Beginning balance at Dec. 31, 2021 | $ 1,491,315 | 1,455,288 | $ 1,298 | 2,855,766 | (1,410,562) | 8,786 | 1,472 | 34,555 | |
Increase (Decrease) in Stockholders' Equity | |||||||||
Distributions | (110) | (110) | |||||||
Issuance and amortization of equity-based compensation | 1,880 | 1,880 | 1,880 | ||||||
Other comprehensive income/(loss) | 676 | 660 | 660 | 16 | |||||
Dividends and distributions declared | (25,241) | (24,657) | (24,657) | (584) | |||||
Shares canceled for tax withholding on vested stock awards (in shares) | (136,000) | ||||||||
Shares canceled for tax withholding on vested stock awards | (1,000) | (1,000) | $ (2) | (998) | |||||
Reallocation of equity | 0 | (13) | (13) | 13 | |||||
Net income (loss) | 28,400 | 27,724 | 27,724 | 22 | 654 | ||||
Ending balance (in shares) at Mar. 31, 2022 | 129,633,000 | ||||||||
Ending balance at Mar. 31, 2022 | $ 1,495,920 | 1,459,882 | $ 1,296 | 2,856,635 | (1,407,495) | 9,446 | 1,384 | 34,654 | |
Increase (Decrease) in Stockholders' Equity | |||||||||
Dividends and distributions declared per share of common stock (in dollars per share) | $ 0.19 | ||||||||
Beginning balance (in shares) at Dec. 31, 2021 | 129,769,000 | ||||||||
Beginning balance at Dec. 31, 2021 | $ 1,491,315 | 1,455,288 | $ 1,298 | 2,855,766 | (1,410,562) | 8,786 | 1,472 | 34,555 | |
Increase (Decrease) in Stockholders' Equity | |||||||||
Other comprehensive income/(loss) | (9,134) | ||||||||
Net income (loss) | 63,030 | ||||||||
Ending balance (in shares) at Jun. 30, 2022 | 128,965,000 | ||||||||
Ending balance at Jun. 30, 2022 | 1,453,349 | 1,452,008 | $ 1,290 | 2,850,001 | (1,398,773) | (510) | 1,341 | 0 | |
Beginning balance (in shares) at Mar. 31, 2022 | 129,633,000 | ||||||||
Beginning balance at Mar. 31, 2022 | 1,495,920 | 1,459,882 | $ 1,296 | 2,856,635 | (1,407,495) | 9,446 | 1,384 | 34,654 | |
Increase (Decrease) in Stockholders' Equity | |||||||||
Distributions | (28) | (28) | |||||||
Issuance and amortization of equity-based compensation (in shares) | 1,524,000 | ||||||||
Issuance and amortization of equity-based compensation | 2,286 | 2,286 | $ 16 | 2,270 | |||||
Repurchase of common stock (in shares) | (2,181,000) | ||||||||
Repurchase of common stock | (18,320) | (18,320) | $ (22) | (18,298) | |||||
Other comprehensive income/(loss) | (9,810) | (9,956) | (9,956) | 146 | |||||
Dividends and distributions declared | (25,565) | (25,565) | (25,565) | ||||||
Shares canceled for tax withholding on vested stock awards (in shares) | (11,000) | ||||||||
Shares canceled for tax withholding on vested stock awards | (254) | (254) | (254) | ||||||
OP Redemption | (25,511) | 9,648 | 9,648 | (35,159) | |||||
Net income (loss) | 34,631 | 34,287 | 34,287 | (15) | 359 | ||||
Ending balance (in shares) at Jun. 30, 2022 | 128,965,000 | ||||||||
Ending balance at Jun. 30, 2022 | $ 1,453,349 | $ 1,452,008 | $ 1,290 | $ 2,850,001 | $ (1,398,773) | $ (510) | $ 1,341 | $ 0 | |
Increase (Decrease) in Stockholders' Equity | |||||||||
Dividends and distributions declared per share of common stock (in dollars per share) | $ 0.20 |
CONSOLIDATED STATEMENTS OF EQ_2
CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) - $ / shares | 3 Months Ended | |||||
Jun. 15, 2022 | Mar. 15, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | |
Statement of Stockholders' Equity [Abstract] | ||||||
Dividends and distributions declared per share of common stock (in dollars per share) | $ 0.20 | $ 0.19 | $ 0.20 | $ 0.19 | $ 0.14 | $ 0.10 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 63,030 | $ (118,109) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Equity in (earnings) losses of unconsolidated ventures | (25) | 35,624 |
Depreciation and amortization | 17,314 | 19,533 |
Straight-line rental income | (731) | (1,407) |
Amortization of above/below market lease values, net | (103) | (26) |
Amortization of premium/accretion of discount and fees on investments and borrowings, net | (6,912) | (2,582) |
Amortization of deferred financing costs | 4,938 | 5,893 |
Amortization of right-of-use lease assets and operating lease liabilities | 234 | 52 |
Paid-in-kind interest added to loan principal, net of interest received | 5,679 | (4,240) |
Unrealized gain on mortgage loans and obligations held in securitization trusts, net | 0 | (28,154) |
Realized loss on mortgage loans and obligations held in securitization trusts, net | 0 | 19,516 |
Realized loss on securities from write-down to fair value | 0 | 990 |
Realized gain on sale of real estate securities, available for sale | 0 | (131) |
Realized gain on sale of real estate | (10,632) | (11,911) |
Increase (decrease) of current expected credit loss reserve | 9,277 | 4,425 |
Amortization of equity-based compensation | 4,166 | 9,705 |
Mortgage notes above/below market value amortization | 98 | 63 |
Realized gain on sales of unconsolidated ventures | (21,900) | 0 |
Deferred income tax benefit | (650) | (1,910) |
Other (gain) loss, net | (1,828) | 1,369 |
Changes in assets and liabilities: | ||
Receivables, net | (628) | (1,952) |
Deferred costs and other assets | 1,914 | (22,937) |
Due to related party | 0 | (10,059) |
Other liabilities | (8,627) | (22,363) |
Net cash provided by (used in) operating activities | 54,614 | (128,611) |
Cash flows from investing activities: | ||
Acquisition, origination and funding of loans held for investment, net | (815,466) | (822,834) |
Repayment on loans held for investment | 470,411 | 124,198 |
Proceeds from sale of real estate | 55,600 | 332,003 |
Acquisition of and additions to real estate, related intangibles and leasing commissions | (1,577) | (2,612) |
Investments in unconsolidated ventures | 0 | (3,499) |
Proceeds from sale of investments in unconsolidated ventures | 38,100 | 0 |
Distributions in excess of cumulative earnings from unconsolidated ventures | (3) | 21,433 |
Repayment of real estate securities, available for sale, from sales | 0 | 5,079 |
Repayment of real estate securities, available for sale, from cost recovery | 0 | 210 |
Repayment of principal in mortgage loans held in securitization trusts | 15,946 | 9,649 |
Proceeds from sale of beneficial interests of securitization trusts | 0 | 28,662 |
Change in escrow deposits | 2,069 | 30,498 |
Net cash used in investing activities | (234,920) | (277,213) |
Cash flows from financing activities: | ||
Distributions paid on common stock | (48,033) | (12,864) |
Distributions paid on common stock to noncontrolling interests | (1,138) | (431) |
Shares canceled for tax withholding on vested stock awards | (1,254) | (2,451) |
Repurchase of common stock | (18,320) | 0 |
Redemption of OP units | (25,383) | 0 |
Borrowings from mortgage notes | 0 | 3,069 |
Repayment of mortgage notes | (82,116) | (263,329) |
Borrowings from credit facilities | 698,700 | 675,429 |
Repayment of credit facilities | (116,254) | (207,992) |
Repayment of securitization bonds | (138,369) | 0 |
Repayment of mortgage obligations issued by securitization trusts | (15,947) | (9,649) |
Payment of deferred financing costs | (7,863) | (4,186) |
Contributions from noncontrolling interests | 0 | 2,222 |
Distributions to noncontrolling interests | (138) | (23,942) |
Net cash provided by financing activities | 243,885 | 155,876 |
Effect of exchange rates on cash, cash equivalents and restricted cash | (726) | 1,937 |
Net increase (decrease) in cash, cash equivalents and restricted cash | 62,853 | (248,011) |
Cash, cash equivalents and restricted cash - beginning of period | 346,563 | 540,030 |
Cash, cash equivalents and restricted cash - end of period | 409,416 | 292,019 |
Reconciliation of cash, cash equivalents, and restricted cash to consolidated balance sheets | ||
Cash and cash equivalents | 317,742 | 210,182 |
Restricted cash | 91,674 | 81,837 |
Total cash, cash equivalents and restricted cash | 409,416 | 292,019 |
Supplemental disclosure of non-cash investing and financing activities: | ||
Deconsolidation of securitization trust (VIE asset/liability reductions) | 0 | (802,195) |
Accrual of distribution payable | (25,565) | (18,597) |
Right-of-use lease assets and operating lease liabilities | $ 3,271,000 | $ 5,435 |
Business and Organization
Business and Organization | 6 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business and Organization | Business and Organization BrightSpire Capital, Inc. is a commercial real estate (“CRE”) credit real estate investment trust (“REIT”) focused on originating, acquiring, financing and managing a diversified portfolio consisting primarily of CRE debt investments and net leased properties predominantly in the United States. CRE debt investments primarily consist of first mortgage loans, which the Company expects to be its primary investment strategy. Additionally, the Company may selectively originate mezzanine loans and make preferred equity investments, which may include profit participations. The mezzanine loans and preferred equity investments may be in conjunction with the Company’s origination of corresponding first mortgages on the same properties. Net leased properties consist of CRE properties with long-term leases to tenants on a net-lease basis, where such tenants generally will be responsible for property operating expenses such as insurance, utilities, maintenance capital expenditures and real estate taxes. The Company will continue to target net leased equity investments on a selective basis. The Company also currently has investments in CRE debt securities consisting of commercial mortgage-backed securities (“CMBS”) that are “B-pieces” of a CMBS securitization pool. The Company was organized in the state of Maryland on August 23, 2017 and maintains key offices in New York, New York and Los Angeles, California. The Company elected to be taxed as a REIT under the Internal Revenue Code of 1986, as amended, beginning with the taxable year ended December 31, 2018. The Company conducts all activities and holds substantially all assets and liabilities through the Company’s operating subsidiary, BrightSpire Capital Operating Company, LLC, (the “OP”). At March 31, 2022, the Company owned 97.7% of the OP, as its sole managing member. The remaining 2.3% was owned as noncontrolling interests. During the three months ended June 30, 2022, the Company redeemed the 2.3% of outstanding membership units in the OP for $25.4 million. Following this redemption, there were no noncontrolling interests in the OP at June 30, 2022. Impact of COVID-19 The COVID-19 pandemic has negatively impacted CRE credit REITs across the industry, as well as other companies that own and operate commercial real estate investments. Throughout 2020, continuing into the second quarter of 2022, countries around the world continued to face healthcare and economic challenges arising from the coronavirus, or COVID-19. Efforts to address the pandemic, such as social distancing, closures or reduced capacity of retail and service outlets, hotels, factories and public venues, often mandated by governments, as well as changes in consumer behavior or corporate policies in response to the COVID-19 pandemic, have had a significant impact on the global economy and financial markets across major industries, including many sectors of real estate. In particular, the Company’s loans for investment and real estate investments in the hospitality and retail sectors have experienced and anticipate a myriad of challenges, including, but not limited to: significant declines in operating cash flows of the Company’s investments which in turn affect their ability to meet debt service and covenant requirements on investment-level debt (non-recourse to the Company); flexible lease payment terms sought by tenants; increased property operating costs such as labor and supplies as a result of COVID-19; potential payment defaults on the Company's loans held for investment; and a distressed market affecting real estate values in general. The COVID-19 crisis may also lead to heightened risk of litigation at the investment and corporate level, with an ensuing increase in litigation and related costs. The volatility in equity and debt markets, and the economic fallout from COVID-19 may affect the valuation of the Company’s financial assets, carried at fair value. The Company’s consideration and assessment of impairment is discussed further in Note 3, “Loans Held for Investment, net,” Note 4, “Real Estate Securities,” Note 5, “Real Estate, net and Real Estate Held for Sale” and Note 13, “Fair Value.” The continuing economic downturn as a result of efforts to contain COVID-19 may continue to negatively affect the Company’s financial condition and results of operations. While the extent and duration of the broad effects of COVID-19 on the global economy and the Company remain unclear, the Company believes it has materially addressed overall recoverability in value across its assets based upon external factors known to date and assumptions using the Company’s best estimate at this time. The Company will continue to monitor the progress of the COVID-19 crisis and reassess its effects on the Company’s results of operations and recoverability in value across its assets as conditions change. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting PoliciesThe significant accounting policies of the Company are described below. The accounting policies of the Company’s unconsolidated ventures are substantially similar to those of the Company. Basis of Presentation The accompanying unaudited interim financial statements have been prepared in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all information and footnotes required by generally accepted accounting principles in the United States of America (“GAAP”) for complete financial statements. These statements reflect all normal and recurring adjustments which, in the opinion of management, are necessary to present fairly the financial position, results of operations and cash flows of the Company for the interim periods presented. However, the results of operations for the interim period presented are not necessarily indicative of the results that may be expected for the year ending December 31, 2022, or any other future period. These interim financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in, or presented as exhibits to, the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. The accompanying consolidated financial statements include the accounts of the Company and its controlled subsidiaries. All significant intercompany accounts and transactions have been eliminated. The portions of equity, net income and other comprehensive income of consolidated subsidiaries that are not attributable to the parent are presented separately as amounts attributable to noncontrolling interests in the consolidated financial statements. Reclassifications Certain prior period amounts have been reclassified from operating expense to compensation and benefits and from investment in unconsolidated ventures to other assets in the consolidated financial statements to conform to current period presentation. This reclassification did not affect the Company’s financial position, results of operations or cash flows. Use of Estimates The preparation of consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates and assumptions. Restructuring Charges On April 4, 2021, the Company entered into the termination agreement (the “Termination Agreement”) with its former external manager (the “Manager”), a subsidiary of DigitalBridge Group, Inc. (“DigitalBridge”) whereby its management agreement (the “Management Agreement”) terminated on April 30, 2021. The termination of the Management Agreement resulted in a material change in the management structure of the Company, and was accounted for under ASC 420, Exit or disposal cost obligations. The one-time payment made during the three months ended March 31, 2021 to the Manager under the Termination Agreement, and other associated costs, were recorded within restructuring charges on the consolidated statement of operations. Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its controlled subsidiaries. The portions of the equity, net income and other comprehensive income of consolidated subsidiaries that are not attributable to the parent are presented separately as amounts attributable to noncontrolling interests in the consolidated financial statements. The Company consolidates entities in which it has a controlling financial interest by first considering if an entity meets the definition of a variable interest entity (“VIE”) for which the Company is deemed to be the primary beneficiary, or if the Company has the power to control an entity through a majority of voting interest or through other arrangements. Variable Interest Entities Variable Interest Entities— A VIE is an entity that either (i) lacks sufficient equity to finance its activities without additional subordinated financial support from other parties; (ii) whose equity holders lack the characteristics of a controlling financial interest; or (iii) is established with non-substantive voting rights. A VIE is consolidated by its primary beneficiary, which is defined as the party who has a controlling financial interest in the VIE through (a) power to direct the activities of the VIE that most significantly affect the VIE’s economic performance, and (b) obligation to absorb losses or right to receive benefits of the VIE that could be significant to the VIE. The Company also considers interests held by its related parties, including de facto agents. The Company assesses whether it is a member of a related party group that collectively meets the power and benefits criteria and, if so, whether the Company is most closely associated with the VIE. In performing the related party analysis, the Company considers both qualitative and quantitative factors, including, but not limited to: the amount and characteristics of its investment relative to the related party; the Company’s and the related party’s ability to control or significantly influence key decisions of the VIE including consideration of involvement by de facto agents; the obligation or likelihood for the Company or the related party to fund operating losses of the VIE; and the similarity and significance of the VIE’s business activities to those of the Company and the related party. The determination of whether an entity is a VIE, and whether the Company is the primary beneficiary, may involve significant judgment, including the determination of which activities most significantly affect the entities’ performance, and estimates about the current and future fair values and performance of assets held by the VIE. Voting Interest Entities— Unlike VIEs, voting interest entities have sufficient equity to finance their activities and equity investors exhibit the characteristics of a controlling financial interest through their voting rights. The Company consolidates such entities when it has the power to control these entities through ownership of a majority of the entities’ voting interests or through other arrangements. At each reporting period, the Company reassesses whether changes in facts and circumstances cause a change in the status of an entity as a VIE or voting interest entity, and/or a change in the Company’s consolidation assessment. Changes in consolidation status are applied prospectively. An entity may be consolidated as a result of this reassessment, in which case, the assets, liabilities and noncontrolling interest in the entity are recorded at fair value upon initial consolidation. Any existing equity interest held by the Company in the entity prior to the Company obtaining control will be remeasured at fair value, which may result in a gain or loss recognized upon initial consolidation. However, if the consolidation represents an asset acquisition of a voting interest entity, the Company’s existing interest in the acquired assets, if any, is not remeasured to fair value but continues to be carried at historical cost. The Company may also deconsolidate a subsidiary as a result of this reassessment, which may result in a gain or loss recognized upon deconsolidation depending on the carrying values of deconsolidated assets and liabilities compared to the fair value of any interests retained. As of June 30, 2022 and December 31, 2021, the Company has identified certain consolidated and unconsolidated VIEs. Assets of each of the VIEs, other than the OP, may only be used to settle obligations of the respective VIE. Creditors of each of the VIEs have no recourse to the general credit of the Company. Consolidated VIEs The Company’s operating subsidiary, the OP, is a limited liability company that has governing provisions that are the functional equivalent of a limited partnership. Following the redemption of the outstanding membership units in the OP held by an unaffiliated third party during the three months ended June 30, 2022, there were no noncontrolling interests in the OP at June 30, 2022 and as of June 30, 2022, the Company holds all of the membership interests in the OP and the OP is no longer a VIE. The Company is the managing member of the OP and exercises full responsibility, discretion and control over the day-to-day management of the OP and has the power to direct the core activities of the OP that most significantly affect the OP’s performance, and through its ownership interest in the OP, has both the right to receive benefits from and the obligation to absorb losses of the OP. Accordingly, the Company is the primary beneficiary of the OP and consolidates the OP. As the Company conducts its business and holds its assets and liabilities through the OP, the total assets and liabilities of the OP represent substantially all of the total consolidated assets and liabilities of the Company. See “Noncontrolling Interests” below for further details on the redemption of OP units during the three months ended June 30, 2022. Other consolidated VIEs include the Investing VIEs (as defined and discussed below) and certain operating real estate properties that have noncontrolling interests. At June 30, 2022 and December 31, 2021, the noncontrolling interests in the operating real estate properties represent third party joint venture partners with ownership ranging from 5.0% to 11.0%. These noncontrolling interests do not have substantive kick-out nor participating rights. Investing VIEs The Company’s investments in securitization financing entities (“Investing VIEs”) include subordinate first-loss tranches of securitization trusts, which represent interests in such VIEs. Investing VIEs are structured as pass through entities that receive principal and interest payments from the underlying debt collateral assets and distribute those payments to the securitization trust’s certificate holders, including the most subordinate tranches of the securitization trust. Generally, a securitization trust designates the most junior subordinate tranche outstanding as the controlling class, which entitles the holder of the controlling class to unilaterally appoint and remove the special servicer for the trust, and as such may qualify as the primary beneficiary of the trust. If it is determined that the Company is the primary beneficiary of an Investing VIE as a result of acquiring the subordinate first-loss tranches of the securitization trust, the Company would consolidate the assets, liabilities, income and expenses of the entire Investing VIE. The assets held by an Investing VIE are restricted and can only be used to fulfill its own obligations. The obligations of an Investing VIE have neither any recourse to the general credit of the Company as the consolidating parent entity of an Investing VIE, nor to any of the Company’s other consolidated entities. As of June 30, 2022, the Company held subordinate tranches of a securitization trust in one Investing VIE for which the Company has determined it is the primary beneficiary because it has the power to direct the activities that most significantly impact the economic performance of the securitization trust. The Company’s subordinate tranches of the securitization trust, which represents the retained interest and related interest income, are eliminated in consolidation. As a result, all of the assets, liabilities (obligations to the certificate holders of the securitization trust, less the Company’s retained interest from the subordinate tranches of the securitization trust), income and expenses of the Investing VIE are presented in the consolidated financial statements of the Company although the Company legally owns the subordinate tranches of the securitization trust only. Regardless of the presentation, the Company’s consolidated financial statements of operations ultimately reflect the net income attributable to its retained interest in the subordinate tranches of the securitization trust. The Company elected the fair value option for the initial recognition of the assets and liabilities of its consolidated Investing VIE. Interest income and interest expense associated with the Investing VIE are presented separately on the consolidated statements of operations, and the assets and liabilities of the Investing VIE are separately presented as “Mortgage loans held in securitization trusts, at fair value” and “Mortgage obligations issued by securitization trusts, at fair value,” respectively, on the consolidated balance sheets. Refer to Note 13, “Fair Value” for further discussion. The Company has adopted guidance issued by the Financial Accounting Standards Board (“FASB”), allowing the Company to measure both the financial assets and liabilities of a qualifying collateralized financing entity (“CFE”), such as its Investing VIE, using the fair value of either the CFE’s financial assets or financial liabilities, whichever is more observable. A CFE is a VIE that holds financial assets, issues beneficial interests in those assets and has no more than nominal equity, and the beneficial interests have contractual recourse only to the related assets of the CFE. As the liabilities of the Company’s Investing VIE are marketable securities with observable trade data, their fair value is more observable and is referenced to determine fair value of the assets of its Investing VIE. Refer to Note 13, “Fair Value” for further discussion. Unconsolidated VIEs During the three months ended June 30, 2022, the Company sold its one remaining unconsolidated VIE. Refer to Note 7, “Restricted Cash, Other Assets and Accrued and Other Liabilities” for further discussion of the sale. As of December 31, 2021, the Company identified unconsolidated VIEs related to its CRE debt investments. Based on management’s analysis, the Company determined that it is not the primary beneficiary of such VIEs. Accordingly, the VIEs are not consolidated in the Company’s financial statements as of December 31, 2021. Assets of each of the VIEs may only be used to settle obligations of the respective VIE. Creditors of each of the VIEs have no recourse to the general credit of the Company. As of June 30, 2022, the Company has no remaining obligations to unconsolidated VIEs. The Company did not provide financial support to the unconsolidated VIEs during the six months ended June 30, 2022 and the fiscal year ended December 31, 2021. As of December 31, 2021, there were no explicit arrangements or implicit variable interests that could require the Company to provide financial support to the unconsolidated VIEs. The maximum exposure to loss of investments in unconsolidated ventures was determined as the carrying value plus any future funding commitments. The carrying value and maximum exposure to loss of the investments in unconsolidated joint ventures at December 31, 2021 was $16.2 million. Noncontrolling Interests Noncontrolling Interests in Investment Entities— This represents interests in consolidated investment entities held by third party joint venture partners. Allocation of net income or loss is generally based upon relative ownership interests held by equity owners in each investment entity, or based upon contractual arrangements that may provide for disproportionate allocation of economic returns among equity interests, including using a hypothetical liquidation at book value (“HLBV”) basis, where applicable and substantive. HLBV uses a balance sheet approach, which measures each party’s capital account at the end of a period assuming that the subsidiary was liquidated or sold at book value. Each party’s share of the subsidiary’s earnings or loss is calculated by measuring the change in the party’s capital account from the beginning of the period in question to the end of period, adjusting for effects of distributions and new investments. Noncontrolling Interests in the Operating Partnership (“OP”)— Noncontrolling interests in the OP are allocated a share of net income or loss in the OP based on their weighted average ownership interest in the OP during the period. Noncontrolling interests in the OP have the right to require the OP to redeem part or all of the membership units in the OP for cash based on the market value of an equivalent number of shares of Class A common stock at the time of redemption, or at the Company’s election as managing member of the OP, through the issuance of shares of Class A common stock on a one-for-one basis. At the end of each reporting period, noncontrolling interests in the OP were adjusted to reflect their ownership percentage in the OP at the end of the period, through a reallocation between controlling and noncontrolling interests in the OP, as applicable. Through February 2022, the noncontrolling interests in the OP were held by an affiliate of DigitalBridge, after which such entity was sold to an unaffiliated third party. During the three months ended June 30, 2022, the Company redeemed the 3.1 million outstanding membership units in the OP held by such entity at a price of $8.25 per unit for a total cost of $25.4 million. Following this redemption, the noncontrolling interests in the operating partnership were reclassified to additional paid-in capital and accumulated other comprehensive income on the Company’s consolidated balance sheet and there are no noncontrolling interests in the OP. As of June 30, 2022, there were no remaining noncontrolling interests in the OP and the OP was wholly-owned by the Company directly, and indirectly through the Company’s wholly-owned subsidiary, BRSP-T LLC. Comprehensive Income (Loss) The Company reports consolidated comprehensive income (loss) in separate statements following the consolidated statements of operations. Comprehensive income (loss) is defined as the change in equity resulting from net income (loss) and other comprehensive income (“OCI”). The components of OCI include unrealized gain (loss) on CRE debt securities available for sale for which the fair value option was not elected, gain (loss) on derivative instruments used in the Company’s risk management activities used for economic hedging purposes (“designated hedges”), and gain (loss) on foreign currency translation. Fair Value Measurement Fair value is based on an exit price, defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. Where appropriate, the Company makes adjustments to estimated fair values to appropriately reflect counterparty credit risk as well as the Company’s own credit-worthiness. The estimated fair value of financial assets and financial liabilities are categorized into a three-tier hierarchy, prioritized based on the level of transparency in inputs used in the valuation techniques, as follows: Level 1— Quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2— Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in non-active markets, or valuation techniques utilizing inputs that are derived principally from or corroborated by observable data directly or indirectly for substantially the full term of the financial instrument. Level 3— At least one assumption or input is unobservable and it is significant to the fair value measurement, requiring significant management judgment or estimate. Where the inputs used to measure the fair value of a financial instrument fall into different levels of the fair value hierarchy, the financial instrument is categorized within the hierarchy based on the lowest level of input that is significant to its fair value measurement. Fair Value Option The fair value option provides an option to elect fair value as an alternative measurement for selected financial instruments. Gains and losses on items for which the fair value option has been elected are reported in earnings. The fair value option may be elected only upon the occurrence of certain specified events, including when the Company enters into an eligible firm commitment, at initial recognition of the financial instrument, as well as upon a business combination or consolidation of a subsidiary. The election is irrevocable unless a new election event occurs. The Company has elected the fair value option for its indirect interests in real estate through real estate private equity funds (“PE Investments”). The Company has also elected the fair value option to account for the eligible financial assets and liabilities of its consolidated Investing VIEs in order to mitigate potential accounting mismatches between the carrying value of the instruments and the related assets and liabilities to be consolidated. The Company has adopted the measurement alternative allowing the Company to measure both the financial assets and financial liabilities of a qualifying CFE it consolidates using the fair value of either the CFE’s financial assets or financial liabilities, whichever is more observable. Business Combinations Definition of a Business— The Company evaluates each purchase transaction to determine whether the acquired assets meet the definition of a business. If substantially all of the fair value of gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets, then the set of transferred assets and activities is not a business. If not, for an acquisition to be considered a business, it would have to include an input and a substantive process that together significantly contribute to the ability to create outputs (i.e., there is a continuation of revenue before and after the transaction). A substantive process is not ancillary or minor, cannot be replaced without significant costs, effort or delay or is otherwise considered unique or scarce. To qualify as a business without outputs, the acquired assets would require an organized workforce with the necessary skills, knowledge and experience that performs a substantive process. Asset Acquisitions— For acquisitions that are not deemed to be businesses, the assets acquired are recognized based on their cost to the Company as the acquirer and no gain or loss is recognized. The cost of assets acquired in a group is allocated to individual assets within the group based on their relative fair values and does not give rise to goodwill. Transaction costs related to the acquisition of assets are included in the cost basis of the assets acquired. Such valuations require management to make significant estimates and assumptions. Business Combinations— The Company accounts for acquisitions that qualify as business combinations by applying the acquisition method. Transaction costs related to the acquisition of a business are expensed as incurred and excluded from the fair value of consideration transferred. The identifiable assets acquired, liabilities assumed and noncontrolling interests in an acquired entity are recognized and measured at their estimated fair values. The excess of the fair value of consideration transferred over the fair values of identifiable assets acquired, liabilities assumed and noncontrolling interests in an acquired entity, net of fair value of any previously held interest in the acquired entity, is recorded as goodwill. Such valuations require management to make significant estimates and assumptions. Cash and Cash Equivalents Short-term, highly liquid investments with original maturities of three months or less are considered to be cash equivalents. The Company did not have any cash equivalents at June 30, 2022 or December 31, 2021. The Company’s cash is held with major financial institutions and may at times exceed federally insured limits. Restricted Cash Restricted cash consists primarily of borrower escrow deposits, tenant escrow deposits and real estate capital expenditure reserves. Loans Held for Investment The Company originates and purchases loans and preferred equity held for investment. The accounting framework for loans and preferred equity held for investment depends on the Company’s strategy whether to hold or sell the loan, whether the loan was credit-impaired at the time of acquisition, or if the lending arrangement is an acquisition, development and construction loan. Loans Held for Investment Loans and preferred equity that the Company has the intent and ability to hold for the foreseeable future are classified as held for investment. Originated loans and preferred equity are recorded at amortized cost, or outstanding unpaid principal balance plus exit fees less net deferred loan fees. Net deferred loan fees include unamortized origination and other fees charged to the borrower less direct incremental loan origination costs incurred by the Company. Purchased loans and preferred equity are recorded at amortized cost, or unpaid principal balance plus purchase premium or less unamortized discount. Costs to purchase loans and preferred equity are expensed as incurred. Interest Income— Interest income is recognized based upon contractual interest rate and unpaid principal balance of the loans and preferred equity investments. Net deferred loan fees on originated loans and preferred equity investments are deferred and amortized as adjustments to interest income over the expected life of the loans and preferred equity investments using the effective yield method. Premium or discount on purchased loans and preferred equity investments are amortized as adjustments to interest income over the expected life of the loans and preferred equity investments using the effective yield method. When a loan or preferred equity investment is prepaid, prepayment fees and any excess of proceeds over the carrying amount of the loan or preferred equity investment is recognized as additional interest income. The Company has debt investments in its portfolio that contain a payment-in-kind (“PIK”) provision. Contractual PIK interest, which represents contractually deferred interest added to the loan balance that is due at the end of the loan term, is generally recorded on an accrual basis to the extent such amounts are expected to be collected. The Company will generally cease accruing PIK interest if there is insufficient value to support the accrual or management does not expect the borrower to be able to pay all principal and interest due. Nonaccrual— Accrual of interest income is suspended on nonaccrual loans and preferred equity investments. Loans and preferred equity investments that are past due 90 days or more as to principal or interest, or where reasonable doubt exists as to timely collection, are generally considered nonperforming and placed on nonaccrual status. Interest receivable is reversed against interest income when loans and preferred equity investments are placed on nonaccrual status. Interest collected is recognized on a cash basis by crediting income when received; or if ultimate collectability of loan and preferred equity principal is uncertain, interest collected is recognized using a cost recovery method by applying interest collected as a reduction to loan and preferred equity carrying value. Loans and preferred equity investments may be restored to accrual status when all principal and interest are current and full repayment of the remaining contractual principal and interest are reasonably assured. Loans Held for Sale Loans that the Company intends to sell or liquidate in the foreseeable future are classified as held for sale. Loans held for sale are carried at the lower of amortized cost or fair value less disposal cost, with valuation changes recognized as impairment loss. Loans held for sale are not subject to Current Expected Credit Losses (“CECL”) reserves. Net deferred loan origination fees and loan purchase premiums or discounts are deferred and capitalized as part of the carrying value of the held for sale loan until the loan is sold, therefore included in the periodic valuation adjustments based on lower of cost or fair value less disposal cost. At June 30, 2022 and December 31, 2021, the Company had no loans classified as held for sale. Acquisition, Development and Construction (“ADC”) Arrangements The Company provides loans to third party developers for the acquisition, development and construction of real estate. Under an ADC arrangement, the Company participates in the expected residual profits of the project through the sale, refinancing or other use of the property. The Company evaluates the characteristics of each ADC arrangement, including its risks and rewards, to determine whether they are more similar to those associated with a loan or an investment in real estate. ADC arrangements with characteristics implying loan classification are presented as loans held for investment and result in the recognition of interest income. ADC arrangements with characteristics implying real estate joint ventures are presented as investments in unconsolidated joint ventures and are accounted for using the equity method. The classification of each ADC arrangement as either loan receivable or real estate joint venture involves significant judgment and relies on various factors, including market conditions, amount and timing of expected residual profits, credit enhancements in the form of guaranties, estimated fair value of the collateral, and significance of borrower equity in the project, among others. The classification of ADC arrangements is performed at inception, and periodically reassessed when significant changes occur in the circumstances or conditions described above. Operating Real Estate Real Estate Acquisitions— Real estate acquired in acquisitions that are deemed to be business combinations is recorded at the fair values of the acquired components at the time of acquisition, allocated among land, buildings, improvements, equipment and lease-related tangible and identifiable intangible assets and liabilities, including forgone leasing costs, in-place lease values and above- or below-market lease values. Real estate acquired in acquisitions that are deemed to be asset acquisitions is recorded at the total value of consideration transferred, including transaction costs, and allocated to the acquired components based upon relative fair value. The estimated fair value of acquired land is derived from recent comparable sales of land and listings within the same local region based on available market data. The estimated fair value of acquired buildings and building improvements is derived from comparable sales, discounted cash flow analysis using market-based assumptions, or replacement cost, as appropriate. The fair value of site and tenant improvements is estimated based upon current market replacement costs and other relevant market rate information. Real Estate Held for Investment Real estate held for investment is carried at cost less accumulated depreciation. Costs Capitalized or Expensed— Expenditures for ordinary repairs and maintenance are expensed as incurred, while expenditures for significant renovations that improve or extend the useful life of the asset are capitalized and depreciated over their estimated useful lives. Depreciation— Real estate held for investment, other than land, is depreciated on a straight-line basis over the estimated useful lives of the assets, as follows: Real Estate Assets Term Building (fee interest) 28 to 40 years Building leasehold interests Lesser of remaining term of the lease or remaining life of the building Building improvements Lesser of the useful life or remaining life of the building Land improvements 1 to 15 years Tenant improvements Lesser of the useful life or remaining term of the lease Furniture, fixtures and equipment 2 to 8 years Impairment— The Company evaluates its real estate held for investment for impairment periodically or whenever events or changes in circumstances indicate that the carrying amounts may not be recoverable. The Company evaluates real estate for impairment generally on an individual property basis. If an impairment indicator exists, the Company evaluates the undiscounted future net cash flows that are expected to be generated by the property, including any estimated proceeds from the eventual disposition of the property. If multiple outcomes are under consideration, the Company may apply a probability-weighted approach to the impairment analysis. Based upon the analysis, if the carrying value of a property exceeds its undiscounted future net cash flows, an impairment loss is recognized for the excess of the carryin |
Loans Held for Investment, net
Loans Held for Investment, net | 6 Months Ended |
Jun. 30, 2022 | |
Receivables [Abstract] | |
Loans Held for Investment, net | Loans Held for Investment, net The following table provides a summary of the Company’s loans held for investment, net (dollars in thousands): June 30, 2022 December 31, 2021 Unpaid Principal Balance Carrying Value Weighted Average Coupon (1) Weighted Average Maturity in Years Unpaid Principal Balance Carrying Value Weighted Average Coupon (1) Weighted Average Maturity in Years Variable rate Senior loans $ 2,092,924 $ 2,080,438 5.5 % 3.9 $ 1,576,439 $ 1,564,940 4.6 % 3.7 Securitized loans (2) 1,653,076 1,649,077 5.2 % 3.1 1,806,583 1,803,042 4.2 % 3.5 Mezzanine loans 12,000 12,120 12.8 % 0.0 12,000 12,120 11.5 % 0.7 3,758,000 3,741,635 3,395,022 3,380,102 Fixed rate Mezzanine loans 92,052 91,888 12.2 % 3.0 105,636 105,505 12.4 % 3.0 92,052 91,888 105,636 105,505 Loans held for investment 3,850,052 3,833,523 3,500,658 3,485,607 CECL reserve NA (44,378) NA (36,598) Loans held for investment, net $ 3,850,052 $ 3,789,145 $ 3,500,658 $ 3,449,009 _________________________________________ (1) Calculated based on contractual interest rate. (2) Represents loans transferred into securitization trusts that are consolidated by the Company. The weighted average maturity, including extensions, of loans was 3.4 years at June 30, 2022. At December 31, 2021, the weighted average maturity, including extensions, of loans was 3.6 years. The Company had $12.1 million and $9.5 million of interest receivable related to its loans held for investment, net as of June 30, 2022 and December 31, 2021, respectively. This is included in receivables, net on the Company’s consolidated balance sheets. Activity relating to the Company’s loans held for investment, net was as follows (dollars in thousands): Carrying Value Balance at January 1, 2022 $ 3,449,009 Acquisitions/originations/additional funding 815,466 Loan maturities/principal repayments (472,470) Discount accretion/premium amortization 6,912 Capitalized interest (1,992) (Increase) decrease of CECL reserve (1) (9,031) Charge-off 1,251 Balance at June 30, 2022 $ 3,789,145 _________________________________________ (1) Excludes $0.3 million as of June 30, 2022, determined by the Company’s PD/LGD model for unfunded commitments reported on the consolidated statement of operations, with a corresponding offset to other liabilities recorded on the Company’s consolidated balance sheets. Nonaccrual and Past Due Loans Loans that are 90 days or more past due as to principal or interest, or where reasonable doubt exists as to timely collection, are generally considered nonperforming and placed on nonaccrual status. As of June 30, 2022 and December 31, 2021, the Company did not have any loans on nonaccrual status. The following table provides an aging summary of loans held for investment at carrying values before CECL reserve (dollars in thousands): Current or Less Than 30 Days Past Due 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due (1) Total Loans June 30, 2022 $ 3,821,403 $ — $ — $ 12,120 $ 3,833,523 December 31, 2021 3,485,607 — — — 3,485,607 _________________________________________ (1) Represents the New York, New York Hotel Mezzanine Loan which is in maturity default as of March 2022. However, because the borrower has provided all interest payments through June 30, 2022, the loan has not been placed on nonaccrual status. Current Expected Credit Loss Reserve The following tables provide details on the changes in CECL reserves for the three and six months ended June 30, 2022 and 2021 (dollars in thousands): Total CECL reserve at December 31, 2021 $ 36,598 Increase (decrease) in CECL reserve (1) (1,343) Charge-offs of CECL reserve (2) (1,251) CECL reserve at March 31, 2022 $ 34,004 Increase (decrease) in CECL reserve (1) 10,374 CECL reserve at June 30, 2022 $ 44,378 CECL reserve at December 31, 2020 $ 37,191 Increase (decrease) in CECL reserve (1) 3,600 CECL reserve at March 31, 2021 $ 40,791 Increase (decrease) in CECL reserve (1) 1,361 CECL reserve at June 30, 2021 $ 42,152 ________________________________________ (1) Excludes the increase (decrease) in CECL reserves related to unfunded commitments reported on the consolidated statement of operations for the three months ended: March 31, 2022: $0.5 million, June 30, 2022: $(0.3) million, March 31, 2021: $(0.4) million, June 30, 2021: $(0.2) million. (2) During the first quarter of 2022, the Company received a $36.5 million repayment on one senior loan collateralized by a student housing property, which was $1.3 million less than the unpaid principal balance. As such, during the fourth quarter of 2021, the Company had recorded a $1.3 million CECL reserve on the loan, as the loss was probable at that point in time, and was subsequently charged off in the first quarter of 2022. Credit Quality Monitoring Loans are typically secured by direct senior priority liens on real estate properties or by interests in entities that directly own real estate properties, which serve as the primary source of cash for the payment of principal and interest. The Company evaluates its loans at least quarterly and differentiates the relative credit quality principally based on: (i) whether the borrower is currently paying contractual debt service in accordance with its contractual terms; and (ii) whether the Company believes the borrower will be able to perform under its contractual terms in the future, as well as the Company’s expectations as to the ultimate recovery of principal at maturity. As of June 30, 2022, all loans were performing in accordance with the contractual terms of their governing documents and were categorized as performing loans, except for the New York, New York Hotel Mezzanine Loan as noted in “Nonaccrual and Past Due Loans” above. There were no loans held for investment with contractual payments past due as of December 31, 2021. For the six months ended June 30, 2022 and June 30, 2021, no debt investment contributed more than 10.0% of interest income. The following tables provide a summary by carrying values before any CECL reserves of the Company’s loans held for investment by year of origination and credit quality risk ranking (dollars in thousands) as of June 30, 2022 and December 31, 2021, respectively. Refer to Note 2, “Summary of Significant Accounting Policies” for loans risk rating definitions. June 30, 2022 2022 2021 2020 2019 2018 and Earlier Total Senior loans Risk Rankings: 2 $ — $ 200,113 $ 58,880 $ 25,855 $ — $ 284,848 3 762,666 1,388,246 53,289 283,483 300,244 2,787,928 4 — — — 352,049 304,690 656,739 Total Senior loans 762,666 1,588,359 112,169 661,387 604,934 3,729,515 Mezzanine loans Risk Rankings: 3 17,165 — — 41,459 4,474 63,098 4 — — — 28,790 — 28,790 5 — — — — 12,120 12,120 Total Mezzanine loans 17,165 — — 70,249 16,594 104,008 Total Loans held for investment $ 779,831 $ 1,588,359 $ 112,169 $ 731,636 $ 621,528 $ 3,833,523 As of June 30, 2022, the average risk rating for loans held for investment was 3.1. December 31, 2021 2021 2020 2019 2018 2017 Total Senior loans Risk Rankings: 2 $ 242,850 $ 109,103 $ 70,811 $ — $ — $ 422,764 3 1,393,307 72,359 443,162 262,147 34,036 2,205,011 4 — — 396,395 304,477 — 700,872 5 — — 39,335 — — 39,335 Total Senior loans 1,636,157 181,462 949,703 566,624 34,036 3,367,982 Mezzanine loans Risk Rankings: 3 — — 38,796 4,489 — 43,285 4 — — 62,220 — 12,120 74,340 Total Mezzanine loans — — 101,016 4,489 12,120 117,625 Total Loans held for investment $ 1,636,157 $ 181,462 $ 1,050,719 $ 571,113 $ 46,156 $ 3,485,607 As of December 31, 2021, the average risk rating for loans held for investment was 3.1. Lending Commitments |
Real Estate Securities
Real Estate Securities | 6 Months Ended |
Jun. 30, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Real Estate Securities | Real Estate Securities Investments in Investing VIEs The Company is the directing certificate holder of one securitization trust and has the ability to appoint and replace the special servicer on all mortgage loans. As such, GAAP requires the Company to consolidate the assets, liabilities, income and expenses of the securitization trust as Investing VIEs. Refer to Note 2, “Summary of Significant Accounting Policies” for further discussion on Investing VIEs. Other than the securities represented by the Company’s subordinate tranches of the securitization trust, the Company does not have any claim to the assets or exposure to the liabilities of the securitization trust. The original issuers, who are unrelated third parties, guarantee the interest and principal payments related to the investment grade securitization bonds in the securitization trust, therefore these obligations do not have any recourse to the general credit of the Company as the consolidator of the securitization trust. The Company’s maximum exposure to loss would not exceed the carrying value of its retained investments in the securitization trust, or the subordinate tranches of the securitization trust. As of June 30, 2022, the mortgage loans and the related mortgage obligations held in the securitization trust had an unpaid principal balance of $767.8 million and $665.2 million, respectively. As of December 31, 2021, the mortgage loans and the related mortgage obligations held in the securitization trusts had an unpaid principal balance of $783.8 million and $681.2 million, respectively. As of June 30, 2022, the underlying collateral of the securitization trust consisted of 61 underlying commercial mortgage loans, with a weighted average coupon of 4.9% and a weighted average loan-to-value ratio of 60.2%. The following table presents the assets and liabilities recorded on the consolidated balance sheets attributable to the securitization trust as of June 30, 2022 and December 31, 2021 (dollars in thousands): June 30, 2022 December 31, 2021 Assets Mortgage loans held in a securitization trust, at fair value $ 718,335 $ 813,310 Receivables, net 3,214 3,325 Total assets $ 721,549 $ 816,635 Liabilities Mortgage obligations issued by a securitization trust, at fair value $ 682,181 $ 777,156 Accrued and other liabilities 2,930 3,032 Total liabilities $ 685,111 $ 780,188 The Company elected the fair value option to measure the assets and liabilities of the securitization trusts, which requires that changes in valuations of the securitization trusts be reflected in the Company’s consolidated statements of operations. The difference between the carrying values of the mortgage loans held in securitization trusts and the carrying value of the mortgage obligations issued by securitization trusts was $36.2 million as of June 30, 2022 and December 31, 2021, respectively, and approximates the fair value of the Company’s retained investments in the subordinate tranches of the securitization trusts, which are eliminated in consolidation. Refer to Note 13, “Fair Value” for a description of the valuation techniques used to measure fair value of assets and liabilities of the Investing VIEs. The below table presents net income attributable to the Company’s common stockholders for the three and six months ended June 30, 2022 and 2021 generated from the Company’s investments in the subordinate tranches of the securitization trusts (dollars in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Statement of Operations Interest income on mortgage loans held in securitization trusts $ 9,721 $ 11,390 $ 19,095 $ 31,079 Interest expense on mortgage obligations issued by securitization trusts (8,586) (10,111) (17,074) (27,447) Net interest income 1,135 1,279 2,021 3,632 Operating expense (245) (161) (342) (927) Unrealized gain on mortgage loans and obligations held in securitization trusts, net — 19,516 — 28,154 Realized loss on mortgage loans and obligations held in securitization trusts, net — (19,516) — (19,516) Net income attributable to BrightSpire Capital, Inc. common stockholders $ 890 $ 1,118 $ 1,679 $ 11,343 |
Real Estate, net and Real Estat
Real Estate, net and Real Estate Held for Sale | 6 Months Ended |
Jun. 30, 2022 | |
Real Estate [Abstract] | |
Real Estate, net and Real Estate Held for Sale | Real Estate, net and Real Estate Held for Sale The following table presents the Company’s net lease portfolio, net, as of June 30, 2022, and December 31, 2021 (dollars in thousands): June 30, 2022 December 31, 2021 Land and improvements $ 128,426 $ 134,453 Buildings, building leaseholds, and improvements 504,504 530,815 Tenant improvements 17,168 17,944 Construction-in-progress 660 660 Subtotal $ 650,758 $ 683,872 Less: Accumulated depreciation (77,467) (70,861) Net lease portfolio, net $ 573,291 $ 613,011 The following table presents the Company’s portfolio of other real estate as of June 30, 2022 and December 31, 2021 (dollars in thousands): June 30, 2022 December 31, 2021 Land and improvements $ 29,583 $ 29,582 Buildings, building leaseholds, and improvements 152,186 152,180 Tenant improvements 17,731 17,303 Furniture, fixtures and equipment 135 135 Construction-in-progress 1,651 460 Subtotal $ 201,286 $ 199,660 Less: Accumulated depreciation (32,498) (29,460) Other portfolio, net $ 168,788 $ 170,200 For the six months ended June 30, 2022 and 2021, the Company had no single property with rental and other income equal to or greater than 10.0% of total revenue of the Company. At December 31, 2021, the Company held one foreclosed property which was included in assets held for sale with a carrying value of $33.5 million. Depreciation Expense Depreciation expense on real estate was $6.4 million and $7.0 million for the three months ended June 30, 2022 and 2021, respectively. Depreciation expense on real estate was $12.5 million and $13.9 million for the six months ended June 30, 2022, and 2021, respectively. Property Operating Income For the three and six months ended June 30, 2022 and 2021, the components of property operating income were as follows (dollars in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Lease revenues (1) Minimum lease revenue $ 19,334 $ 20,240 $ 39,068 $ 42,649 Variable lease revenue 2,388 2,449 5,214 5,229 $ 21,722 $ 22,689 $ 44,282 $ 47,878 Hotel operating income — 1,902 1,566 2,603 $ 21,722 $ 24,591 $ 45,848 $ 50,481 _________________________________________ (1) Excludes net amortization income related to above and below-market leases of $0.1 million and de minimis income for the three and six months ended June 30, 2022, respectively. Excludes net amortization income related to above and below-market leases of $0.2 million and de minimis income for the three and six months ended June 30, 2021, respectively. Minimum Future Rents Minimum rental amounts due under leases are generally either subject to scheduled fixed increases or adjustments. The following table presents approximate future minimum rental income under noncancellable operating leases, excluding variable lease revenue of tenant reimbursements, to be received over the next five years and thereafter as of June 30, 2022 (dollars in thousands): Remainder of 2022 $ 37,034 2023 70,197 2024 65,515 2025 58,966 2026 52,100 2027 and thereafter 361,832 Total $ 645,644 The rental properties owned at June 30, 2022 are leased under noncancellable operating leases with current expirations ranging from 2022 to 2038, with certain tenant renewal rights. For certain properties, the tenants pay the Company, in addition to the contractual base rent, their pro rata share of real estate taxes and operating expenses. Certain lease agreements provide for periodic rental increases and others provide for increases based on the consumer price index. Commitments and Contractual Obligations Ground Lease Obligation In connection with real estate acquisitions, the Company assumed certain noncancellable operating ground leases as lessee or sublessee with expiration dates through 2050. Rents on certain ground leases are paid directly by the tenants. Ground rent expense for the three and six months ended June 30, 2022 was $0.8 million and $1.5 million, respectively. Ground rent expense for the three and six months ended June 30, 2021 was $0.8 million and $1.5 million, respectively. Refer to Note 15, “Commitments and Contingencies” for the details of future minimum rental payments on noncancellable ground lease on real estate as of June 30, 2022. Real Estate Held for Sale As of June 30, 2022, the Company did not have any properties held for sale. As of December 31, 2021, the Company held one net lease property and one hotel as held for sale. These properties consisted of $44.2 million of real estate, net and $0.1 million of deferred leasing costs and intangible assets which were included in assets held for sale on the Company’s consolidated balance sheet. Real Estate Sales During the six months ended June 30, 2022, the Company completed the sale of one net lease property for a gross sales price of $19.6 million which resulted in a $7.6 million gain on sale and is included in other gain, net on the consolidated statement of operations. The Company also sold one hotel property for a gross sales price of $36.0 million which resulted in a $2.9 million gain on sale and is included in other gain, net on the consolidated statement of operations. |
Deferred Leasing Costs and Othe
Deferred Leasing Costs and Other Intangibles | 6 Months Ended |
Jun. 30, 2022 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Deferred Leasing Costs and Other Intangibles | Deferred Leasing Costs and Other Intangibles The Company’s deferred leasing costs, other intangible assets and intangible liabilities, excluding those related to assets held for sale, at June 30, 2022 and December 31, 2021 are as follows (dollars in thousands): June 30, 2022 Carrying Amount Accumulated Amortization Net Carrying Amount Deferred Leasing Costs and Intangible Assets In-place lease values $ 75,437 $ (32,834) $ 42,603 Deferred leasing costs 28,207 (14,371) 13,836 Above-market lease values 8,359 (6,445) 1,914 $ 112,003 $ (53,650) $ 58,353 Intangible Liabilities Below-market lease values $ 16,074 $ (10,542) $ 5,532 December 31, 2021 Carrying Amount Accumulated Amortization Net Carrying Amount (1) Deferred Leasing Costs and Intangible Assets In-place lease values $ 81,869 $ (34,555) $ 47,314 Deferred leasing costs 29,863 (14,701) 15,162 Above-market lease values 10,171 (7,666) 2,505 $ 121,903 $ (56,922) $ 64,981 Intangible Liabilities Below-market lease values $ 16,166 $ (9,942) $ 6,224 _________________________________________ (1) Excludes deferred leasing costs and intangible assets and intangible liabilities related to assets held for sale at December 31, 2021. The following table summarizes the amortization of deferred leasing costs, intangible assets and intangible liabilities for the three and six months ended June 30, 2022 and 2021 (dollars in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Above-market lease values $ (286) $ (262) $ (574) $ (666) Below-market lease values 346 470 677 692 Net increase (decrease) to property operating income $ 60 $ 208 $ 103 $ 26 In-place lease values $ 1,537 $ 1,862 $ 3,138 $ 3,627 Deferred leasing costs 748 935 1,554 1,556 Other intangibles — 129 — 172 Amortization expense $ 2,285 $ 2,926 $ 4,692 $ 5,355 The following table presents the amortization of deferred leasing costs, intangible assets and intangible liabilities, for each of the next five years and thereafter as of June 30, 2022 (dollars in thousands): 2022 2023 2024 2025 2026 2027 and thereafter Total Above-market lease values $ (521) $ (571) $ (443) $ (265) $ (86) $ (28) $ (1,914) Below-market lease values 692 1,379 1,379 1,378 704 — 5,532 Net increase (decrease) to property operating income $ 171 $ 808 $ 936 $ 1,113 $ 618 $ (28) $ 3,618 In-place lease values $ 2,932 $ 5,054 $ 4,754 $ 4,068 $ 3,235 $ 22,560 $ 42,603 Deferred leasing costs 1,485 2,516 2,209 1,804 923 4,899 13,836 Amortization expense $ 4,417 $ 7,570 $ 6,963 $ 5,872 $ 4,158 $ 27,459 $ 56,439 |
Restricted Cash, Other Assets a
Restricted Cash, Other Assets and Accrued and Other Liabilities | 6 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Restricted Cash, Other Assets and Accrued and Other Liabilities | Restricted Cash, Other Assets and Accrued and Other Liabilities The following table presents a summary of restricted cash as of June 30, 2022 and December 31, 2021 (dollars in thousands): June 30, 2022 December 31, 2021 Restricted cash: Borrower escrow deposits $ 75,414 $ 73,344 Capital expenditure reserves 9,829 8,921 Real estate escrow reserves 3,628 2,025 Working capital and other reserves 2,003 2,310 Tenant lockboxes 800 241 Total $ 91,674 $ 86,841 The following table presents a summary of other assets as of June 30, 2022 and December 31, 2021 (dollars in thousands): June 30, 2022 December 31, 2021 Other assets: Right-of-use lease asset $ 26,670 $ 24,970 Tax receivable and deferred tax assets 22,338 26,194 Deferred financing costs, net - credit facilities 7,373 2,113 Prepaid expenses 4,407 5,069 Investments in unconsolidated ventures ($4,406 and $4,406 at fair value, respectively) 4,406 20,591 Derivative asset 3,202 1,373 Other 1,786 2,141 Total $ 70,182 $ 82,451 The following table presents a summary of accrued and other liabilities as of June 30, 2022 and December 31, 2021 (dollars in thousands): June 30, 2022 December 31, 2021 Accrued and other liabilities: Operating lease liability $ 27,153 $ 25,205 Current and deferred tax liability 27,080 34,612 Accounts payable, accrued expenses and other liabilities 15,974 20,168 Interest payable 8,531 11,076 Prepaid rent and unearned revenue 6,462 7,669 Unfunded CECL loan allowance 678 432 Tenant security deposits 409 424 Other 206 228 Total $ 86,493 $ 99,814 Investments under Fair Value Option Private Funds The Company elected to account for its limited partnership interests in PE Investments under the fair value option, which interests ranged from 1.0% to 15.6% for the six months ended June 30, 2022. The Company records equity in earnings for these investments based on a change in fair value of its share of projected future cash flows. Investments in Unconsolidated Ventures During the three months ended June 30, 2022 the Company sold an equity method investment for a gross sales price of $38.1 million and recognized a realized gain of $21.9 million. The realized gain is included in other gain, net on the Company’s consolidated statements of operations. Following the sale, the Company had no remaining equity method investments. |
Debt
Debt | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Debt | Debt The following table presents debt as of June 30, 2022 and December 31, 2021 (dollars in thousands): June 30, 2022 December 31, 2021 Capacity ($) Recourse vs. Non-Recourse (1) Final Contractual Principal Amount (2) Carrying Value (2) Principal Amount (2) Carrying Value (2) Securitization bonds payable, net CLNC 2019-FL1 (3) Non-recourse Aug-35 SOFR (4) + 1.66% $ 702,054 $ 699,645 $ 840,423 $ 836,812 BRSP 2021-FL1 (3) Non-recourse Aug-38 LIBOR + 1.49% 670,000 665,261 670,000 664,087 Subtotal securitization bonds payable, net 1,372,054 1,364,906 1,510,423 1,500,899 Mortgage and other notes payable, net Net lease 6 Non-recourse Oct-27 4.45% 22,840 22,840 23,117 23,117 Net lease 5 Non-recourse Nov-26 4.45% 3,247 3,188 3,282 3,216 Net lease 4 Non-recourse Nov-26 4.45% 7,005 6,877 7,081 6,939 Net lease 3 (5) Non-recourse Jan-22 6.00% — — 11,867 11,807 Net lease 6 Non-recourse Jul-23 LIBOR + 2.15% 674 661 908 889 Net lease 5 Non-recourse Aug-26 4.08% 30,376 30,199 30,639 30,442 Net lease 1 (6) Non-recourse Nov-26 4.45% 17,631 17,309 17,823 17,465 Net lease 1 (7) Non-recourse Mar-28 4.38% 11,648 11,211 11,769 11,332 Net lease 2 (8) Non-recourse Jun-25 3.91% 161,856 164,151 181,504 184,078 Net lease 3 Non-recourse Sep-33 4.77% 200,000 198,733 200,000 198,689 Other real estate 1 Non-recourse Oct-24 4.47% 104,306 104,589 105,090 105,452 Other real estate 3 Non-recourse Jan-25 4.30% 71,618 71,248 72,359 71,922 Other real estate 6 (9) Non-recourse Apr-24 LIBOR + 2.95% — — 30,000 29,859 Loan 9 (10) Non-recourse Jun-24 LIBOR + 3.00% 27,851 27,851 65,377 65,376 Subtotal mortgage and other notes payable, net 659,052 658,857 760,816 760,583 Bank credit facility Bank credit facility $ 165,000 Recourse Jan-27 (11) SOFR + 2.25% — — — — Subtotal bank credit facility — — — — Master repurchase facilities Bank 1 facility 3 $ 400,000 Limited Recourse (12) Apr-26 (13) LIBOR/SOFR + 1.82% (14) 250,162 250,162 109,915 109,915 Bank 3 facility 3 600,000 Limited Recourse (12) Apr-23 (15) LIBOR/SOFR + 1.95% (14) 396,202 396,202 157,409 157,409 Bank 7 facility 1 600,000 Limited Recourse (12) Apr-26 (16) LIBOR/SOFR + 1.79% (14) 415,795 415,795 358,181 358,181 Bank 8 facility 1 250,000 Limited Recourse (12) Jun-23 (17) LIBOR/SOFR + 2.18% (14) 158,504 158,504 177,519 177,519 Bank 9 facility 1 400,000 (18) June-27 (19) LIBOR/SOFR + 1.70% (14) 266,904 266,904 102,098 102,098 Subtotal master repurchase facilities $ 2,250,000 1,487,567 1,487,567 905,122 905,122 Subtotal credit facilities 1,487,567 1,487,567 905,122 905,122 Total $ 3,518,673 $ 3,511,330 $ 3,176,361 $ 3,166,604 _________________________________________ (1) Subject to customary non-recourse carveouts. (2) Difference between principal amount and carrying value of securitization bonds payable, net and mortgage and other notes payable, net is attributable to deferred financing costs, net and premium/discount on mortgage notes payable. (3) The Company, through indirect Cayman subsidiaries, securitized commercial mortgage loans originated by the Company. Senior notes issued by the securitization trusts were generally sold to third parties and subordinated notes retained by the Company. These securitizations are accounted for as secured financing with the underlying mortgage loans pledged as collateral. Principal payments from underlying collateral loans must be applied to repay the notes until fully paid off, irrespective of the contractual maturities on the notes. Underlying collateral loans have initial terms of two (4) As of June 17, 2021, the benchmark index interest rate was converted from the one-month London Interbank Offered Rates (“LIBOR”) to Compounded Secured Overnight Financing Rate (“SOFR”), plus a benchmark adjustment of 11.448 basis points. As of February 19, 2022, the benchmark index interest rate was converted from Compounded SOFR to Term SOFR, plus a benchmark adjustment of 11.448 basis points, conforming with the indenture agreement. (5) During the first quarter of 2022 the property was sold and the mortgage payable was repaid in full. (6) Payment terms are periodic payment of principal and interest for debt on two properties and periodic payment of interest only with principal at maturity (except for principal repayments to release collateral properties disposed) for debt on one property. (7) Represents a mortgage note collateralized by three properties. (8) As of June 30, 2022, the outstanding principal of the mortgage payable was NOK 1.6 billion , which translated to $161.9 million. (9) During the first quarter of 2022 the property was sold and the mortgage payable was repaid in full. (10) The current maturity of the note payable is June 2023, with one one-year extension available at the Company’s option, which may be subject to the satisfaction of certain customary conditions set forth in the governing documents. (11) On January 28, 2022, the Company, through its subsidiaries, including the OP, entered into an Amended and Restated Credit Agreement. Refer to “Bank Credit Facility” within this note for more details. (12) Recourse solely with respect to 25.0% of the financed amount. (13) During the second quarter of 2022, the maturity date was April 2023. In July 2022, the maturity date was extended to July 2024, with three one-year extension options, which may be exercised upon the satisfaction of certain customary conditions set forth in the governing documents. (14) Represents the weighted average spread as of June 30, 2022. The contractual interest rate depends upon asset type and characteristics and ranges from one-month LIBOR or SOFR plus 1.50% to 2.70%. (15) During the second quarter of 2022, the maturity date was April 2023. In July 2022, the maturity date was extended to April 2025, with two one-year extension options, which may be exercised upon the satisfaction of certain customary conditions set forth in the governing documents. (16) The current maturity date is April 20 25, with a one-year extension available at the option of the Company, whic h may be exercised upon the satisfaction of certain customary conditions set forth in the governing documents. (17) The current maturity date is June 2023, with no extension currently available at the option of the Company. (18) Recourse is either 25.0% or 50.0% depending on loan metrics. (19) The current maturity date is June 2025, with two one-year extensions available at the option of the Company, which may be exercised upon the satisfaction of certain customary conditions set forth in the governing documents. Future Minimum Principal Payments The following table summarizes future scheduled minimum principal payments at June 30, 2022 based on initial maturity dates or extended maturity dates to the extent criteria are met and the extension option is at the borrower’s discretion (dollars in thousands): Total Securitization Bonds Payable, Net Mortgage Notes Payable, Net Credit Facilities Remaining 2022 $ 1,311 $ — $ 1,311 $ — 2023 557,272 — 2,566 554,706 2024 134,376 — 134,376 — 2025 235,750 — 235,750 — 2026 720,557 — 54,600 665,957 2027 and thereafter 1,869,407 1,372,054 230,449 266,904 Total $ 3,518,673 $ 1,372,054 $ 659,052 $ 1,487,567 Bank Credit Facility The Company uses bank credit facilities (including term loans and revolving facilities) to finance the business. These financings may be collateralized or non-collateralized and may involve one or more lenders. Credit facilities typically have maturities ranging from two On January 28, 2022, the OP (together with certain subsidiaries of the OP from time to time party thereto as borrowers, collectively, the “Borrowers”) entered into an Amended and Restated Credit Agreement (the “Credit Agreement”) with JPMorgan Chase Bank, N.A., as administrative agent (the “Administrative Agent”), and the several lenders from time to time party thereto (the “Lenders”), pursuant to which the Lenders agreed to provide a revolving credit facility in the aggregate principal amount of up to $165.0 million, of which up to $25.0 million is available as letters of credit. Loans under the Credit Agreement may be advanced in U.S. dollars and certain foreign currencies, including euros, pounds sterling and swiss francs. The Credit Agreement amended and restated the OP’s prior $300.0 million revolving credit facility that would have matured on February 1, 2022. The Credit Agreement also includes an option for the Borrowers to increase the maximum available principal amount up to $300.0 million, subject to one or more new or existing Lenders agreeing to provide such additional loan commitments and satisfaction of other customary conditions. Advances under the Credit Agreement accrue interest at a per annum rate equal to, at the applicable Borrower’s election, either (x) an adjusted SOFR rate plus a margin of 2.25%, or (y) a base rate equal to the highest of (i) the Wall Street Journal’s prime rate, (ii) the federal funds rate plus 0.50% and (iii) the adjusted SOFR rate plus 1.00%, plus a margin of 1.25%. An unused commitment fee at a rate of 0.25% or 0.35%, per annum, depending on the amount of facility utilization, applies to un-utilized borrowing capacity under the Credit Agreement. Amounts owed under the Credit Agreement may be prepaid at any time without premium or penalty, subject to customary breakage costs in the case of borrowings with respect to which a SOFR rate election is in effect. The maximum amount available for borrowing at any time under the Credit Agreement is limited to a borrowing base valuation of certain investment assets, with the valuation of such investment assets generally determined according to a percentage of adjusted net book value. As of June 30, 2022, the borrowing base valuation is sufficient to permit borrowings of up to the entire $165.0 million commitment. If any borrowing is outstanding for more than 180 days after its initial draw, the borrowing base valuation will be reduced by 50% until all outstanding borrowings are repaid in full. The ability to borrow new amounts under the Credit Agreement terminates on January 31, 2026, at which time the OP may, at its election and by written notice to the Administrative Agent, extend the termination date for two additional terms of six months each, subject to the terms and conditions in the Credit Agreement, resulting in a latest termination date of January 31, 2027. The obligations of the Borrowers under the Credit Agreement are guaranteed pursuant to a Guarantee and Collateral Agreement by substantially all material wholly owned subsidiaries of the OP (the “Guarantors”) in favor of the Administrative Agent (the “Guarantee and Collateral Agreement”) and, subject to certain exceptions, secured by a pledge of substantially all equity interests owned by the Borrowers and the Guarantors, as well as by a security interest in deposit accounts of the Borrowers and the Guarantors in which the proceeds of investment asset distributions are maintained. The Credit Agreement contains various affirmative and negative covenants, including, among other things, the obligation of the Company to maintain REIT status and be listed on the New York Stock Exchange, and limitations on debt, liens and restricted payments. In addition, the Credit Agreement includes the following financial covenants applicable to the OP and its consolidated subsidiaries: (a) minimum consolidated tangible net worth of the OP to be greater than or equal to the sum of (i) $1,112,000,000 and (ii) 70% of the net cash proceeds received by the OP from any offering of its common equity after September 30, 2021 and of the net cash proceeds from any offering by the Company of its common equity to the extent such proceeds are contributed to the OP, excluding any such proceeds that are contributed to the OP within ninety (90) days of receipt and applied to acquire capital stock of the OP; (b) the OP’s ratio of EBITDA plus lease expenses to fixed charges for any period of four (4) consecutive fiscal quarters to be not less than 1.50 to 1.00; (c) the OP’s minimum interest coverage ratio to be not less than 3.00 to 1.00; and (d) the OP’s ratio of consolidated total debt to consolidated total assets to be not more than 0.80 to 1.00. The Credit Agreement also includes customary events of default, including, among other things, failure to make payments when due, breach of covenants or representations, cross default to material indebtedness, material judgment defaults, bankruptcy matters involving any Borrower or any Guarantor and certain change of control events. The occurrence of an event of default will limit the ability of the OP and its subsidiaries to make distributions and may result in the termination of the credit facility, acceleration of repayment obligations and the exercise of remedies by the Lenders with respect to the collateral. As of June 30, 2022, the Company was in compliance with all of its financial covenants under the Credit Agreement. Securitization Financing Transactions Securitization bonds payable, net represent debt issued by securitization vehicles consolidated by the Company. Senior notes issued by these securitization trusts were generally sold to third parties and subordinated notes retained by the Company. Payments from underlying collateral loans must be applied to repay the notes until fully paid off, irrespective of the contractual maturities of the loans. CLNC 2019-FL1 In October 2019, the Company executed a securitization transaction, through wholly-owned subsidiaries, CLNC 2019-FL1, Ltd. and CLNC 2019-FL1, LLC (collectively, “CLNC 2019-FL1”), which resulted in the sale of $840.0 million of investment grade notes. As of June 30, 2022, the securitization reflects an advance rate of 82.8% at a weighted average cost of funds of Adjusted Term SOFR plus 1.66% (before transaction expenses) and is collateralized by a pool of 21 senior loan investments. On March 5, 2021, the Financial Conduct Authority of the U.K. (the “FCA”) announced that LIBOR tenors relevant to CLNC 2019-FL1 would cease to be published or no longer be representative after June 30, 2023. The Alternative Reference Rates Committee (the “ARRC”) interpreted this announcement to constitute a benchmark transition event. As of June 17, 2021, the benchmark index interest rate was converted from LIBOR to compounded SOFR, plus a benchmark adjustment of 11.448 basis points with a lookback period equal to the number of calendar days in the applicable Interest Accrual Period plus two As of February 19, 2022, the benchmark index interest rate was converted from Compounded SOFR to Term SOFR, plus a benchmark adjustment of 11.448 basis points, conforming with the indenture agreement. Term SOFR for any interest accrual period shall be the one month CME Term SOFR Reference Rate as published by the CME Group Benchmark Administration on each benchmark determination date. As of June 30, 2022, the CLNC 2019-FL1 mortgage assets are indexed to LIBOR and the borrowings under CLNC 2019-FL1 are indexed to Term SOFR, creating an underlying benchmark index rate basis difference between CLNC 2019-FL1 assets and liabilities, which is meant to be mitigated by the benchmark replacement adjustment described above. The Company has the right to transition the CLNC 2019-FL1 mortgage assets to SOFR, eliminating the basis difference between CLNC 2019-FL1 assets and liabilities, and will make the determination taking into account the loan portfolio as a whole. The transition to SOFR is not expected to have a material impact to CLNC 2019-FL1’s assets and liabilities and related interest expense. CLNC 2019-FL1 included a two-year reinvestment feature that allowed the Company to contribute existing or newly originated loan investments in exchange for proceeds from repayments or repurchases of loans held in CLNC 2019-FL1, subject to the satisfaction of certain conditions set forth in the indenture. The reinvestment period for CLNC 2019-FL1 expired on October 19, 2021. During the first quarter of 2022, two loans held in CLNC 2019-FL1 were repaid, totaling $54.4 million. During the second quarter of 2022, three loans held in CLNC 2019-FL1 were repaid, totaling $84.0 million. The proceeds from the five loan payoffs were used to amortize the securitization bonds in accordance with the securitization priority of payments. Additionally, CLNC 2019-FL1 contains note protection tests that can be triggered as a result of contributed loan defaults, losses, and certain other events outlined in the indenture, beyond established thresholds. A note protection test failure that is not remedied can result in the redirection of interest proceeds from the below investment grade tranches to amortize the most senior outstanding tranche. While the Company continues to closely monitor all loan investments contributed to CLNC 2019-FL1, a deterioration in the performance of an underlying loan could negatively impact its liquidity position. BRSP 2021-FL1 In July 2021, the Company executed a securitization transaction through wholly-owned subsidiaries, BRSP 2021-FL1, Ltd. and BRSP 2021-FL1, LLC (collectively, “BRSP 2021-FL1”), which resulted in the sale of $670 million of investment grade notes. The securitization reflects an advance rate of 83.75% at a weighted costs of funds of LIBOR plus 1.49% (before transaction costs), and is collateralized by a pool of 33 senior loan investments. BRSP 2021-FL1 includes a two-year reinvestment feature that allows the Company to contribute existing or newly originated loan investments in exchange for proceeds from repayments or repurchases of loans held in BRSP 2021-FL1, subject to the satisfaction of certain conditions set forth in the indenture. In addition to existing eligible loans available for reinvestment, the continued origination of securitization eligible loans is required to ensure that we reinvest the available proceeds within BRSP 2021-FL1. During the first quarter of 2022, one loan held in BRSP 2021-FL1 was fully repaid, totaling $11.7 million. During the second quarter of 2022 three loans held in BRSP 2021-FL1 were fully repaid, totaling $47.9 million. Additionally, subsequent to June 30, 2022 and through August 2, 2022 one loan held in BRSP 2021-FL1, totaling $14.2 million was fully repaid. The Company replaced the repaid loans by contributing existing loan investments of equal value. Additionally, BRSP 2021-FL1 contains note protection tests that can be triggered as a result of contributed loan defaults, losses, and certain other events outlined in the indenture, beyond established thresholds. A note protection test failure that is not remedied can result in the redirection of interest proceeds from the below investment grade tranches to amortize the most senior outstanding tranche. We will continue to closely monitor all loan investments contributed to BRSP 2021-FL1, a deterioration in the performance of an underlying loan could negatively impact our liquidity position. As of June 30, 2022, the Company had $1.6 billion carrying value of CRE debt investments and other assets financed with $1.4 billion of securitization bonds payable, net. As of December 31, 2021, the Company had $1.8 billion carrying value of CRE debt investments financed with $1.5 billion of securitization bonds payable, net. Master Repurchase Facilities As of June 30, 2022, the Company, through subsidiaries, had entered into repurchase agreements with multiple global financial institutions to provide an aggregate principal amount of up to $2.3 billion to finance the origination of first mortgage loans and senior loan participations secured by CRE debt investments (“Master Repurchase Facilities”). The Company agreed to guarantee certain obligations under the Master Repurchase Facilities, which contain representations, warranties, covenants, conditions precedent to funding, events of default and indemnities that are customary for agreements of this type. The Master Repurchase Facilities act as revolving loan facilities that can be paid down as assets are repaid or sold and re-drawn upon for new investments. As of June 30, 2022, the Company was in compliance with all of its financial covenants under the Master Repurchase Facilities. As of June 30, 2022, the Company had $2.0 billion carrying value of CRE debt investments financed with $1.5 billion under the Master Repurchase Facilities. As of December 31, 2021, the Company had $1.2 billion carrying value of CRE debt investments financed with $905.1 million under the master repurchase facilities. During the three months ended June 30, 2022, the Company entered into amendments under the Master Repurchase Facility with Bank 7 and Bank 9 to increase the facility sizes by $100 million and extend the maturity dates by one year for each facility. Additionally, subsequent to June 30, 2022, the Company entered into amendments under the Master Repurchase Facility with Bank 1 and Bank 3 to extend the maturity date by one year and four years, respectively. CMBS Credit Facilities |
Related Party Arrangements
Related Party Arrangements | 6 Months Ended |
Jun. 30, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Arrangements | Related Party Arrangements Internalization On April 30, 2021, the Company completed the internalization of the Company’s management and operating functions and terminated its relationship with its Manager in accordance with the Termination Agreement (the “Internalization”). The Company paid the Manager a one-time termination fee of $102.3 million and additional closing costs of $0.3 million. The Company will not pay management or incentive fees to the Manager for any post-closing period. Refer to Note 2, “Summary of Significant Accounting Policies,” for further details. Fees to Manager Base Management Fee Following the Internalization on April 30, 2021, the Company no longer pays a base management fee to the Manager. For the three and six months ended June 30, 2021, the total management fee expense incurred was $2.3 million and $9.6 million, respectively. Incentive Fee Following the Internalization on April 30, 2021, the Company no longer pays an incentive fee to the Manager. The Company did not incur any incentive fees during the three and six months ended June 30, 2021. Reimbursements of Expenses Following the Internalization on April 30, 2021, the Company no longer reimburses expenses incurred by the Manager. For the three and six months ended June 30, 2021, the total reimbursements of expenses incurred by the Manager on behalf of the Company and reimbursable in accordance with the Management Agreement was $0.8 million and $2.8 million, respectively, |
Equity-Based Compensation
Equity-Based Compensation | 6 Months Ended |
Jun. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Equity-Based Compensation | Equity-Based Compensation On January 29, 2018, the Company’s Board of Directors adopted the 2018 Equity Incentive Plan (the “2018 Plan”). The 2018 Plan permits the grant of awards with respect to 4.0 million shares of the Class A common stock, subject to adjustment pursuant to the terms of the 2018 Plan. Awards may be granted under the 2018 Plan to (x) the Manager, or any employee, officer, director, consultant or advisor (who is a natural person) providing services to the Company, the Manager or their affiliates and (y) any other individual whose participation in the 2018 Plan is determined to be in the best interests of the Company. The following types of awards may be made under the 2018 Plan, subject to the limitations set forth in the plan: (i) stock options (which may be either incentive stock options or non-qualified stock options); (ii) stock appreciation rights; (iii) restricted stock awards; (iv) stock units; (v) unrestricted stock awards; (vi) dividend equivalent rights; (vii) performance awards; (viii) annual cash incentive awards; (ix) long-term incentive units; and (x) other equity-based awards. Shares subject to an award granted under the 2018 Plan will be counted against the maximum number of shares of Class A common stock available for issuance thereunder as one share of Class A common stock for every one share of Class A common stock subject to such an award. Shares subject to an award granted under the 2018 Plan will again become available for issuance under the 2018 Plan if the award terminates by expiration, forfeiture, cancellation, or otherwise without the issuance of such shares (except as set forth in the following sentence). The number of shares of Class A common stock available for issuance under the 2018 Plan will not be increased by (i) any shares tendered or withheld in connection with the purchase of shares upon exercise of a stock option, (ii) any shares deducted or delivered in connection with the Company’s tax withholding obligations, or (iii) any shares purchased by the Company with proceeds from stock option exercises. The shares granted in May 2020 to the independent directors of the Company under the 2018 Plan vested in May 2021. The shares granted in June 2021 to the independent directors, as well as in October and December to the two newly appointed independent directors of the Company under the 2018 Plan vested in May 2022. Shares granted to non-independent directors, officers and the Manager under the 2018 Plan vest ratably in three annual installments. On February 15, 2022, the Company’s Board of Directors adopted, and at the annual meeting of stockholders held on May 5, 2022, the stockholders approved, the 2022 Equity Incentive Plan (the “2022 Plan”), which was effective as of May 5, 2022 and amends and restates the 2018 Plan. Other than increasing the total number of shares of the Class A common stock issuable under the 2018 Plan by 10.0 million shares (subject to adjustment pursuant to the terms of the 2022 Plan) and extending the termination date of the 2018 Plan to May 4, 2032, there were no significant changes from the 2018 Plan. On May 5, 2022, the Company granted 1,456,366 shares of Class A common stock to certain of its employees. The shares vest in one-third increments on March 15, 2023, March 15, 2024 and March 15, 2025. On May 6, 2022, the Company granted 62,190 shares of Class A common stock to the independent directors of the Company which vest on May 6, 2023. Equity-Based Compensation Expense In connection with the share grants, the Company recognized share-based compensation of $2.3 million and $4.2 million within compensation and benefits in the consolidated statement of operations for the three and six months ended June 30, 2022, respectively. The Company recognized share-based compensation expense of $5.4 million and $9.7 million within compensation and benefits in the consolidated statement of operations for the three and six months ended June 30, 2021, respectively. Restricted Stock —Restricted stock awards relating to the Company’s Class A common stock are granted to independent directors of the Company and generally vest within one year and restricted stock awards were granted to certain employees of the Manager, with a service condition only and are generally subject to annual time-based vesting in equal tranches over a three-year period. Restricted stock is entitled to dividends declared and paid on the Company’s Class A common stock and such dividends are not forfeitable prior to vesting of the award. Restricted stock awards are valued based on the Company’s Class A common stock price on grant date and equity-based compensation expense is recognized on a straight-line basis over the requisite three-year service period. Some employees of the Manager who were granted restricted stock under the 2018 Plan became employees of the Company following the Internalization on April 30, 2021. The shares held by substantially all remaining employees of the Manager vested following the Internalization. Performance Stock Units (“PSU”) —PSUs are granted to certain employees of the Company and are subject to both a service condition and a performance condition. Following the end of the measurement period for the PSUs, the recipients of PSUs may be eligible to vest in all or a portion of PSUs granted, and be issued a number of shares of the Company’s Class A common stock, ranging from 0% to 200% of the number of PSUs granted and eligible to vest, to be determined based upon the performance of the Company’s Class A common stock relative to the Company’s GAAP book value at the end of a two-year measurement period. PSUs also contain dividend equivalent rights which entitle the recipients to a payment equal to the amount of dividends that would have been paid on the shares that are ultimately issued at the end of the measurement period. Fair value of PSUs, including dividend equivalent rights, was determined using a Monte Carlo simulation, with the following assumptions: 2021 Grant Expected volatility (1) 86.6 % Risk free rate (2) 0.1 % Expected dividend yield (3) — _________________________________________ (1) Based upon the Company’s historical stock volatility. (2) Based upon the continuously compounded zero-coupon U.S. Treasury yield for the term coinciding with the measurement period of the award as of valuation date. (3) Based upon the dividend yield in place as of the grant date. Fair value of PSU awards, excluding dividend equivalent rights, is recognized on a straight-line basis over their measurement period as compensation expense, and is subject to reversal if the performance condition is not achieved. The table below summarizes the Company’s awards granted, forfeited or vested under the 2022 Plan during the six months ended June 30, 2022: Number of Shares Weighted Average Grant Date Fair Value Restricted Stock PSUs Total Restricted Stock PSUs Unvested shares at December 31, 2021 1,482,094 272,000 1,754,094 $ 12.35 $ 11.96 Granted 1,524,482 — 1,524,482 8.59 — Vested (605,422) — (605,422) 9.18 — Unvested shares at June 30, 2022 2,401,154 272,000 2,673,154 10.23 11.96 Fair value of equity awards that vested during the six months ended June 30, 2022 and June 30, 2021, determined based on their respective fair values at vesting date, was $3.8 million and $3.9 million, respectively. Fair value of granted awards is determined based on the closing price of the Class A common stock on the date of grant of the awards. Equity-based compensation is classified within compensation and benefits in the consolidated statement of operations. At June 30, 2022, aggregate unrecognized compensation cost for all unvested equity awards was $17.4 million, which is expected to be recognized over a weighted-average period of 2.3 years. At June 30, 2021, aggregate unrecognized compensation cost for all unvested equity awards was $11.0 million, expected to be recognized over a weighted-average period of 2.5 years. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Authorized Capital As of June 30, 2022, the Company had the authority to issue up to 1.0 billion shares of stock, at $0.01 par value per share, consisting of 950.0 million shares of Class A common stock and 50.0 million shares of preferred stock. The Company had no shares of preferred stock issued and outstanding as of June 30, 2022. Dividends During the six months ended June 30, 2022, the Company declared the following dividend on its common stock: Declaration Date Record Date Payment Date Per Share March 15, 2022 March 31, 2022 April 15, 2022 $0.19 June 15, 2022 June 30, 2022 July 15, 2022 $0.20 Share Repurchases In May 2022, the Company’s board of directors authorized a stock repurchase program (“Stock Repurchase Program”) under which the Company may repurchase up to $100.0 million of its outstanding Class A common stock until April 30, 2023. Under the Stock Repurchase Program, the Company may repurchase shares in open market purchases, in privately negotiated transactions or otherwise. The Company has a written trading plan as part of the Share Repurchase Program that provides for share repurchases in open market transactions that is intended to comply with Rule 10b-18 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). The Stock Repurchase Program will be utilized at management’s discretion and in accordance with the requirements of the Securities and Exchange Commission (“SEC”). The timing and actual number of shares repurchased will depend on a variety of factors including price, corporate requirements and other conditions. During the three and six months ended June 30, 2022, the Company repurchased 2.2 million shares of Class A common stock at a weighted average price of $8.40 per share for an aggregate cost of $18.3 million. Additionally, and separate from the Stock Repurchase Program, the Company redeemed the 3.1 million total outstanding membership units in the OP held by a third-party representing noncontrolling interests at a price of $8.25 per unit for a total cost of $25.4 million. As of June 30, 2022, there was $81.7 million remaining available to make repurchases under the Stock Repurchase Plan. Accumulated Other Comprehensive Income (Loss) The following tables present the changes in each component of Accumulated Other Comprehensive Income (Loss) (“AOCI”) attributable to stockholders and noncontrolling interests in the OP, net of immaterial tax effect. Changes in Components of AOCI - Stockholders (in thousands) Unrealized gain on net investment hedges Foreign currency translation gain (loss) Total AOCI at December 31, 2021 $ 17,893 $ (9,107) $ 8,786 Other comprehensive income — 660 660 AOCI at March 31, 2022 $ 17,893 $ (8,447) $ 9,446 Other comprehensive income (loss) before OP reclassification — (9,810) (9,810) Amounts reclassified from OP 710 (856) (146) Net current period OCI 710 (10,666) (9,956) AOCI at June 30, 2022 $ 18,603 $ (19,113) $ (510) (in thousands) Unrealized gain (loss) on real estate securities, available for sale Unrealized gain on net investment hedges Foreign currency translation gain (loss) Total AOCI at December 31, 2020 $ 275 $ 47,127 $ 7,186 $ 54,588 Other comprehensive income (loss) before reclassification (1,035) — (7,467) (8,502) Amounts reclassified from AOCI 760 — — 760 Net current period OCI (275) — (7,467) (7,742) AOCI at March 31, 2021 $ — $ 47,127 $ (281) $ 46,846 Other comprehensive income — — 1,966 1,966 AOCI at June 30, 2021 $ — $ 47,127 $ 1,685 $ 48,812 Changes in Components of AOCI - Noncontrolling Interests in the OP (in thousands) Unrealized gain on net investment hedges Foreign currency translation gain (loss) Total AOCI at December 31, 2021 $ 710 $ (872) $ (162) Other comprehensive income — 16 16 AOCI at March 31, 2022 $ 710 $ (856) $ (146) Other comprehensive income (loss) before Stockholders reclassification — — — Amounts reclassified to Stockholders (710) 856 146 Net current period OCI (710) 856 146 AOCI at June 30, 2022 $ — $ — $ — (in thousands) Unrealized gain (loss) on real estate securities, available for sale Unrealized gain (loss) on net investment hedges Foreign currency translation loss Total AOCI at December 31, 2020 $ (73) $ 1,403 $ (272) $ 1,058 Other comprehensive income (loss) 98 — (288) (190) Amounts reclassified from AOCI (25) — — (25) Net current period OCI 73 — (288) (215) AOCI at March 31, 2021 $ — $ 1,403 $ (560) $ 843 Other comprehensive income (loss) — — (89) (89) AOCI at June 30, 2021 $ — $ 1,403 $ (649) $ 754 Changes in Components of AOCI - Noncontrolling Interests in investment entities (in thousands) Foreign currency translation gain (loss) Total AOCI at December 31, 2021 $ 1,872 $ 1,872 Other comprehensive income before reclassification — — Amounts reclassified from AOCI (1,872) (1,872) Net current period OCI (1,872) (1,872) AOCI at March 31, 2022 $ — $ — Other comprehensive income — — AOCI at June 30, 2022 $ — $ — (in thousands) Foreign currency translation gain (loss) Total AOCI at December 31, 2020 $ 2,193 $ 2,193 Other comprehensive income (loss) (776) (776) AOCI at March 31, 2021 $ 1,417 $ 1,417 Other comprehensive income 336 336 AOCI at June 30, 2021 $ 1,753 $ 1,753 The following table presents the details of the reclassifications from AOCI for the six months ended June 30, 2021: (in thousands) Component of AOCI reclassified into earnings Six Months Ended Affected Line Item in the Consolidated Statements of Operations Realized gain on sale of real estate securities $ 104 Other gain, net Impairment of real estate securities $ (967) Other gain, net |
Noncontrolling Interests
Noncontrolling Interests | 6 Months Ended |
Jun. 30, 2022 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interests | Noncontrolling Interests Operating Partnership Noncontrolling interests included the aggregate limited liability interests in the OP which were held by an affiliate of DigitalBridge through February 2022, after which such entity was sold to an unaffiliated third party. During the three months ended June 30, 2022, the Company redeemed these membership units in the OP for $25.4 million. As of June 30, 2022, there were no remaining noncontrolling interests in the OP and the OP was wholly-owned by the Company directly, and indirectly through the Company’s wholly-owned subsidiary, BRSP-T LLC. Net income (loss) attributable to the noncontrolling interests is based on such members ownership percentage of the OP. Net income attributable to the noncontrolling interests of the OP was $0.4 million and $1.0 million for the three and six months ended June 30, 2022 and net loss attributable to the noncontrolling interests of the OP was $0.4 million and $2.4 million for the three and six months ended June 30, 2021. Investment Entities Noncontrolling interests in investment entities represent third-party equity interests in ventures that are consolidated with the Company’s financial statements. Net income and net loss attributable to noncontrolling interests in the investment entities was de minimis for both the three and six months ended June 30, 2022, respectively and the net loss attributable to noncontrolling interests in the investment entities was $3.5 million and $3.7 million for the three and six months ended June 30, 2021. |
Fair Value
Fair Value | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Fair Value Determination of Fair Value The following is a description of the valuation techniques used to measure fair value of assets accounted for at fair value on a recurring basis and the general classification of these instruments pursuant to the fair value hierarchy. PE Investments The Company accounts for PE Investments at fair value which is determined based on either a valuation model using assumptions for the timing and amount of expected future cash flow for income and realization events for the underlying assets in the funds and discount rate, or pending sales prices, if applicable. This fair value measurement is generally based on unobservable inputs and, as such, is classified as Level 3 of the fair value hierarchy, unless the PE Investments are valued based on pending sales prices, which are classified as Level 2 of the fair value hierarchy. The Company considers cash flow and NAV information provided by general partners of the underlying funds (“GP NAV”) and the implied yields of those funds in valuing its PE Investments. The Company also considers the values derived from the valuation model as a percentage of GP NAV, and compares the resulting percentage of GP NAV to precedent transactions, independent research, industry reports as well as pricing from executed purchase and sale agreements related to the disposition of its PE Investments. The Company may, as a result of that comparison, apply a mark-to-market adjustment. The Company has not elected the practical expedient to measure the fair value of its PE Investments using the NAV of the underlying funds. Real Estate Securities CRE securities are generally valued using a third-party pricing service or broker quotations. These quotations are not adjusted and are based on observable inputs that can be validated, and as such, are classified as Level 2 of the fair value hierarchy. Certain CRE securities may be valued based on a single broker quote, dealer bid or an internal price. Situations where management applies adjustments based on or using unobservable inputs would be classified as Level 3 of the fair value hierarchy. Management determines the prices are representative of fair value through a review of available data, including observable inputs, recent transactions as well as its knowledge of and experience in the market. Investing VIEs As discussed in Note 4, “Real Estate Securities,” the Company has elected the fair value option for the financial assets and liabilities of the consolidated Investing VIEs. The Investing VIEs are “static,” that is no reinvestment is permitted and there is very limited active management of the underlying assets. The Company is required to determine whether the fair value of the financial assets or the fair value of the financial liabilities of the Investing VIEs are more observable, but in either case, the methodology results in the fair value of the assets of the securitization trust being equal to the fair value of their liabilities. The Company has determined that the fair value of the liabilities of the securitization trust is more observable, since market prices for the liabilities are available from a third-party pricing service or are based on quoted prices provided by dealers who make markets in similar financial instruments. The financial assets of the securitization trust are not readily marketable and their fair value measurement requires information that may be limited in availability. In determining the fair value of the trust’s financial liabilities, the dealers will consider contractual cash payments and yields expected by market participants. Dealers also incorporate common market pricing methods, including a spread measurement to the treasury curve or interest rate swap curve as well as underlying characteristics of the particular security including coupon, periodic and life caps, collateral type, rate reset period and seasoning or age of the security. The Company’s collateralized mortgage obligations are classified as Level 2 of the fair value hierarchy, where a third-party pricing service or broker quotations are available and are based on observable valuation inputs, and as Level 3 of the fair value hierarchy, where internal price is utilized based on or using unobservable inputs. In accordance with ASC 810, Consolidation , the assets of the securitization trust are an aggregate value derived from the fair value of the trust’s liabilities, and the Company has determined that the valuation of the trust’s assets in their entirety including its retained interests from the securitizations (eliminated in consolidation in accordance with U.S. GAAP) should be classified as Level 3 of the fair value hierarchy. Derivatives Derivative instruments consist of interest rate contracts and foreign exchange contracts that are generally traded over-the-counter, and are valued using a third-party service provider. Quotations on over-the counter derivatives are not adjusted and are generally valued using observable inputs such as contractual cash flows, yield curve, foreign currency rates and credit spreads, and are classified as Level 2 of the fair value hierarchy. Although credit valuation adjustments, such as the risk of default, rely on Level 3 inputs, these inputs are not significant to the overall valuation of its derivatives. As a result, derivative valuations in their entirety are classified as Level 2 of the fair value hierarchy. Fair Value Hierarchy Financial assets recorded at fair value on a recurring basis are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The following table presents financial assets that were accounted for at fair value on a recurring basis as of June 30, 2022 and December 31, 2021 by level within the fair value hierarchy (dollars in thousands): June 30, 2022 December 31, 2021 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Other assets - PE Investments $ — $ — $ 4,406 $ 4,406 $ — $ — $ 4,406 $ 4,406 Mortgage loans held in securitization trusts, at fair value — — 718,335 718,335 — — 813,310 813,310 Other assets - derivative assets — 3,202 — 3,202 — 1,373 — 1,373 Liabilities: Mortgage obligations issued by securitization trusts, at fair value $ — $ 682,181 $ — $ 682,181 $ — $ 777,156 $ — $ 777,156 Other liabilities - derivative liabilities — — — — — 9 — 9 The following table presents the changes in fair value of financial assets which are measured at fair value on a recurring basis using Level 3 inputs to determine fair value for the six months ended June 30, 2022 and year ended December 31, 2021 (dollars in thousands): Six Months Ended June 30, 2022 Year Ended December 31, 2021 Other assets - PE Investments Mortgage loans held in securitization trusts (1) Other assets - PE Investments Mortgage loans held in securitization trusts Beginning balance $ 4,406 $ 813,310 $ 6,878 $ 1,768,069 Distributions/paydowns — (15,946) (2,380) (78,903) Sale of investments — — — (28,662) Deconsolidation of securitization trust (2) — — — (802,196) Equity in earnings — — (92) — Unrealized loss in earnings — (79,029) — (8,375) Realized loss in earnings — — — (36,623) Ending balance $ 4,406 $ 718,335 $ 4,406 $ 813,310 _________________________________________ (1) For the six months ended June 30, 2022, the Company recorded an unrealized loss of $79.0 million related to mortgage loans held in securitization trusts, at fair value and an unrealized gain of $79.0 million related to mortgage obligations held in securitization trusts, at fair value. (2) In April 2021, the Company sold its retained investments in the subordinate tranches of one securitization trust. As a result of the sale, the Company deconsolidated one of the securitization trusts. As of June 30, 2022 and December 31, 2021, the Company utilized a discounted cash flow model, comparable precedent transactions and other market information to quantify Level 3 fair value measurements on a recurring basis. As of June 30, 2022 and December 31, 2021, the key unobservable inputs used in the analysis of PE Investments included discount rates with a range of 11.0% to 12.0% and timing and amount of expected future cash flows. As of June 30, 2022, the key unobservable inputs used in the valuation of mortgage obligations issued by securitization trusts included a blended yield of 20.7% and a weighted average life of 4.9 years. As of December 31, 2021, the key unobservable inputs used in the valuation of mortgage obligations issued by securitization trusts included a blended yield of 17.5% and a weighted average life of 5.4 years. Significant increases or decreases in any one of the inputs described above in isolation may result in significantly different fair value of the financial assets and liabilities using such Level 3 inputs. For the three and six months ended June 30, 2022, the Company did not record a net unrealized gain (loss) related to mortgage loans held in and mortgage obligations issued by securitization trusts, at fair value. For the three and six months ended June 30, 2021, the Company recorded a net unrealized gain of $19.5 million and $28.2 million, respectively, related to mortgage loans held in and mortgage obligations issued by securitization trusts, at fair value. These amounts, when incurred, are recorded as unrealized gain (loss) on mortgage loans and obligations held in securitization trusts, net in the consolidated statement of operations. For the three and six months ended June 30, 2021, the Company recorded a net realized loss of $19.5 million on mortgage loans held in and mortgage obligations issued by securitization trusts, at fair value, which represents the loss upon sale of the Company’s retained interests in the subordinate tranches of one securitization trust. This amount is recorded as realized loss on mortgage loans and obligations held in securitization trusts, net in the consolidated statement of operations. Fair Value Option The Company may elect to apply the fair value option of accounting for certain of its financial assets or liabilities due to the nature of the instrument at the time of the initial recognition of the investment. The Company elected the fair value option for PE Investments and eligible financial assets and liabilities of its consolidated Investing VIEs because management believes it is a more useful presentation for such investments. The Company determined recording the PE Investments based on the change in fair value of projected future cash flow from one period to another better represents the underlying economics of the respective investment. As of June 30, 2022 and December 31, 2021, the Company has elected not to apply the fair value option for any other eligible financial assets or liabilities. Fair Value of Financial Instruments In addition to the above disclosures regarding financial assets or liabilities which are recorded at fair value, U.S. GAAP requires disclosure of fair value about all financial instruments. The following disclosure of estimated fair value of financial instruments was determined by the Company using available market information and appropriate valuation methodologies. Considerable judgment is necessary to interpret market data and develop estimated fair value. Accordingly, the estimates presented herein are not necessarily indicative of the amounts the Company could realize on disposition of the financial instruments. The use of different market assumptions and/or estimation methodologies may have a material effect on estimated fair value. The following table presents the principal amount, carrying value and fair value of certain financial assets and liabilities as of June 30, 2022 and December 31, 2021 (dollars in thousands): June 30, 2022 December 31, 2021 Principal Amount Carrying Value Fair Value Principal Amount Carrying Value Fair Value Financial assets: (1) Loans held for investment, net (2) $ 3,850,052 $ 3,789,145 $ 3,805,674 $ 3,500,658 $ 3,449,009 $ 3,464,060 Financial liabilities: (1) Securitization bonds payable, net $ 1,372,054 $ 1,364,906 $ 1,372,054 $ 1,510,423 $ 1,500,899 $ 1,510,423 Mortgage and other notes payable, net 659,052 658,857 659,052 760,816 760,583 760,816 Master repurchase facilities 1,487,567 1,487,567 1,487,567 905,122 905,122 905,122 _________________________________________ (1) The fair value of other financial instruments not included in this table is estimated to approximate their carrying value. (2) Excludes future funding commitments of $312.9 million and $264.9 million as of June 30, 2022 and December 31, 2021, respectively. Disclosure about fair value of financial instruments is based on pertinent information available to management as of June 30, 2022. Although management is not aware of any factors that would significantly affect fair value, such amounts have not been comprehensively revalued for purposes of these consolidated financial statements since that date and current estimates of fair value may differ significantly from the amounts presented herein. Loans Held for Investment, Net For loans held for investment, net, fair values were determined: (i) by comparing the current yield to the estimated yield for newly originated loans with similar credit risk or the market yield at which a third party might expect to purchase such investment; or (ii) based on discounted cash flow projections of principal and interest expected to be collected, which includes consideration of the financial standing of the borrower or sponsor as well as operating results of the underlying collateral. These fair value measurements of CRE debt are generally based on unobservable inputs and, as such, are classified as Level 3 of the fair value hierarchy. Carrying values of loans held for investment are presented net of allowance for loan losses, where applicable. Securitization Bonds Payable, Net The Company’s securitization bonds payable, net bear floating rates of interest. As of June 30, 2022, the Company believes the carrying value approximates fair value. These fair value measurements are based on observable inputs, and as such, are classified as Level 2 of the fair value hierarchy. Mortgage and Other Notes Payable, Net For mortgage and other notes payable, net, the Company primarily uses rates currently available with similar terms and remaining maturities to estimate fair value. These measurements are determined using comparable U.S. Treasury rates as of the end of the reporting period. These fair value measurements are based on observable inputs, and as such, are classified as Level 2 of the fair value hierarchy. Master Repurchase Facilities The Company has amounts outstanding under Master Repurchase Facilities. The Master Repurchase Facilities bear floating rates of interest. As of June 30, 2022, the Company believes the carrying value approximates fair value. These fair value measurements are based on observable inputs, and as such, are classified as Level 2 of the fair value hierarchy. Other The carrying values of cash and cash equivalents, receivables, and accrued and other liabilities approximate fair value due to their short term nature and credit risk, if any, are negligible. Nonrecurring Fair Values The Company measures fair value of certain assets on a nonrecurring basis when events or changes in circumstances indicate that the carrying value of the assets may not be recoverable. Adjustments to fair value generally result from the application of lower of amortized cost or fair value accounting for assets held for sale or write-down of asset values due to impairment. The Company did not hold any assets carried at fair value on a nonrecurring basis as of June 30, 2022. The following table summarizes assets carried at fair value on a nonrecurring basis as of December 31, 2021 (dollars in thousands): December 31, 2021 Level 1 Level 2 Level 3 Total Loans held for investment, net (1) $ — $ — $ 38,083 $ 38,083 _________________________________________ (1) See Note 3 “Loans Held for Investment, net” for further details. |
Derivatives
Derivatives | 6 Months Ended |
Jun. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | Derivatives The Company uses derivative instruments to manage the risk of changes in interest rates and foreign exchange rates, arising from both its business operations and economic conditions. Specifically, the Company enters into derivative instruments to manage differences in the amount, timing, and duration of the Company’s known or expected cash receipts and cash payments, the values of which are driven by interest rates, principally relating to the Company’s investments. Additionally, the Company’s foreign operations expose the Company to fluctuations in foreign exchange rates. The Company enters into derivative instruments to protect the value or fix certain of these foreign-denominated amounts in terms of its functional currency, the U.S. dollar. Derivative instruments used in the Company’s risk management activities may be designated as qualifying hedge accounting relationships, designated hedges, or non-designated hedges. As of June 30, 2022 and December 31, 2021, fair value of derivative assets and derivative liabilities were as follows (dollars in thousands): Non-Designated Hedges June 30, 2022 December 31, 2021 Derivative Assets Foreign exchange contracts $ 3,200 $ 1,373 Interest rate contracts 2 2 Included in other assets $ 3,202 $ 1,373 Derivative Liabilities Interest rate contracts $ — $ (9) Included in accrued and other liabilities $ — $ (9) As of June 30, 2022, the Company’s counterparties do not hold any cash collateral. The following table summarizes the Company’s interest rate contracts as of June 30, 2022 and December 31, 2021: Type of Derivatives Notional Currency Notional Amount (in thousands) Range of Maturity Dates Non-Designated June 30, 2022 FX Forward NOK 182,748 August 2022 - May 2024 Interest Rate Swap USD $ 527 July 2023 December 31, 2021 FX Forward NOK 190,772 February 2022 - May 2024 Interest Rate Swap USD $ 30,762 April 2022 - July 2023 The table below represents the effect of the derivative financial instruments on the consolidated statements of operations for the three and six months ended June 30, 2022 and 2021 (dollars in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Other gain, net Non-designated foreign exchange contracts $ 2,116 $ 1,232 $ 1,895 $ 952 Non-designated interest rate contracts 4 5 12 18 $ 2,120 $ 1,237 $ 1,907 $ 970 Offsetting Assets and Liabilities The Company enters into agreements subject to enforceable netting arrangements with its derivative counterparties that allow the Company to offset the settlement of derivative assets and liabilities in the same currency by derivative instrument type or, in the event of default by the counterparty, to offset all derivative assets and liabilities with the same counterparty. The Company has elected not to net derivative asset and liability positions, notwithstanding the conditions for right of offset may have been met. The Company presents derivative assets and liabilities with the same counterparty on a gross basis on the consolidated balance sheets. The following table sets forth derivative positions where the Company has a right of offset under netting arrangements with the same counterparty as of June 30, 2022 and December 31, 2021 (dollars in thousands): Gross Amounts of Assets (Liabilities) Included on Consolidated Balance Sheets Net Amounts of Assets (Liabilities) June 30, 2022 Derivative Assets Foreign exchange contracts $ 3,200 $ 3,200 Interest rate contracts 2 2 $ 3,202 $ 3,202 December 31, 2021 Derivative Assets Foreign exchange contracts $ 1,373 $ 1,373 $ 1,373 $ 1,373 Derivative Liabilities Interest rate contracts $ (9) $ (9) $ (9) $ (9) |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Lending Commitments The Company has lending commitments to borrowers pursuant to certain loan agreements in which the borrower may submit a request for funding contingent on achieving certain criteria, which must be approved by the Company as lender, such as leasing, perf ormance of capital expenditures and construction in progress with an approved budget. At June 30, 2022, assuming the terms to qualify for future fundings, if any, had been met, total unfunded lending commitments for loans held for investment were $282.9 million for senior loans, $18.6 million for securitized loans and $11.4 million for mezzanine loans. At December 31, 2021, total unfunded lending commitments for loans held for investment were $212.6 million for senior loans and $52.3 million for securitized loans. Ground Lease Obligation The Company’s operating leases are ground leases acquired with real estate. At June 30, 2022 and December 31, 2021, the weighted average remaining lease term was 13.8 years and 13.9 years for ground leases, respectively. The following table presents ground lease expense, included in property operating expense, for the three and six months ended June 30, 2022 and 2021 (dollars in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Operating lease expense: Minimum lease expense $ 768 $ 761 $ 1,536 $ 1,529 Variable lease expense — — — — $ 768 $ 761 $ 1,536 $ 1,529 The operating lease liability for ground leases was determined using a weighted average discount rate of 5.3%. The following table presents future minimum rental payments, excluding contingent rents, on noncancellable ground leases on real estate as of June 30, 2022 (dollars in thousands): Remainder of 2022 $ 1,554 2023 3,110 2024 2,213 2025 2,148 2026 2,073 2027 and thereafter 17,254 Total lease payments 28,352 Less: Present value discount 9,135 Operating lease liability (Note 7) $ 19,217 Office Lease At June 30, 2022, the weighted average remaining lease term was 6.6 years for the office leases, which are located in New York, New York and Los Angeles, California. For the three and six months ended June 30, 2022, the following table summarizes lease expense, included in operating expense (dollars in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Corporate Offices Operating lease expense: Fixed lease expense $ 315 $ 133 $ 591 $ 133 $ 315 $ 133 $ 591 $ 133 The operating lease liability for the office leases were determined using a weighted average discount rate of 2.36%. As of June 30, 2022, the Company’s future operating lease commitments for the corporate office leases were as follows (dollars in thousands): Corporate Offices Remainder of 2022 (1) $ 399 2023 1,239 2024 1,293 2025 1,308 2026 1,323 2027 and thereafter 3,068 Total lease payments 8,630 Less: Present value discount 694 Operating lease liability (Note 7) $ 7,936 __________________________________________ (1) The Company entered into a Los Angeles, California office lease in the first quarter of 2022, with rent payments beginning in 2023. Litigation and Claims The Company may be involved in litigation and claims in the ordinary course of the business. As of June 30, 2022, the Company was not involved in any legal proceedings that are expected to have a material adverse effect on the Company’s results of operations, financial position, or liquidity. Employment contracts |
Segment Reporting
Segment Reporting | 6 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting The Company presents its business within the following business segments: • Senior and Mezzanine Loans and Preferred Equity — CRE debt investments including senior mortgage loans, mezzanine loans, and preferred equity interests as well as participations in such loans. The segment also includes ADC loan arrangements accounted for as equity method investments. • Net Leased and Other Real Estate — direct investments in CRE with long-term leases to tenants on a net lease basis, where such tenants generally will be responsible for property operating expenses such as insurance, utilities, maintenance, capital expenditures and real estate taxes. It also includes other real estate, currently consisting of three investments with direct ownership in commercial real estate with an emphasis on properties with stable cash flow. • CRE Debt Securities — investments currently consisting of BBB and some BB rated CMBS (including Non-Investment Grade “B-pieces” of a CMBS securitization pool), or CRE CLOs (including the junior tranches thereof, collateralized by pools of CRE debt investments). It also includes a sub-portfolio of private equity funds. • Corporate — includes corporate-level asset management and other fees including operating expenses, compensation and benefits and restructuring charges. The Company primarily generates revenue from net interest income on the loan, preferred equity and securities portfolios, rental and other income from its net leased and multi-tenant office assets, as well as equity in earnings of unconsolidated ventures. CRE debt securities include the Company’s investment in the subordinate tranches of the securitization trusts which are eliminated in consolidation. The Company’s income is primarily derived through the difference between revenue and the cost at which the Company is able to finance its investments. The Company may also acquire investments which generate attractive returns without any leverage. The following tables present segment reporting for the three and six months ended June 30, 2022 and 2021 (dollars in thousands): Senior and Mezzanine Loans and Preferred Equity CRE Debt Securities Net Leased and Other Real Estate Corporate (1) Total Three Months Ended June 30, 2022 Net interest income (expense) $ 32,064 $ 1,134 $ — $ (435) $ 32,763 Property and other income 78 219 21,806 465 22,568 Property operating expense — — (5,266) — (5,266) Transaction, investment and servicing expense (961) 29 (52) 2 (982) Interest expense on real estate — — (7,117) — (7,117) Depreciation and amortization — — (8,664) (56) (8,720) Increase of current expected credit loss reserve (10,143) — — — (10,143) Compensation and benefits — — — (8,269) (8,269) Operating expense 13 (245) (56) (3,782) (4,070) Other gain, net 21,484 — 2,093 755 24,332 Income (loss) before equity in earnings of unconsolidated ventures and income taxes 42,535 1,137 2,744 (11,320) 35,096 Income tax expense (416) — (49) — (465) Net income (loss) $ 42,119 $ 1,137 $ 2,695 $ (11,320) $ 34,631 Senior and Mezzanine Loans and Preferred Equity CRE Debt Securities Net Leased and Other Real Estate Corporate (1) Total Three Months Ended June 30, 2021 Net interest income (expense) $ 25,926 $ 1,279 $ — $ (998) $ 26,207 Property and other income 181 — 24,808 920 25,909 Management fee expense — — — (2,338) (2,338) Property operating expense — — (6,758) — (6,758) Transaction, investment and servicing expense (563) — (62) (19) (644) Interest expense on real estate — — (7,777) — (7,777) Depreciation and amortization — — (9,948) (46) (9,994) Increase of current expected credit loss reserve (1,200) — — — (1,200) Compensation and benefits — — — (10,053) (10,053) Operating expense (291) (166) — (3,543) (4,000) Restructuring charges — — — (150) (150) Unrealized gain on mortgage loans and obligations held in securitization trusts, net — 19,516 — — 19,516 Realized loss on mortgage loans and obligations held in securitization trusts, net — (19,516) — — (19,516) Other gain (loss), net (400) — 1,236 — 836 Income (loss) before equity in earnings of unconsolidated ventures and income taxes 23,653 1,113 1,499 (16,227) 10,038 Equity in earnings (loss) of unconsolidated ventures (33,665) (123) — — (33,788) Income tax benefit — 49 85 — 134 Net income (loss) $ (10,012) $ 1,039 $ 1,584 $ (16,227) $ (23,616) _________________________________________ (1) Includes income earned from CRE securities purchased at a discount, recognized using the effective interest method had the transaction been recorded as an available for sale security, at amortized cost. Senior and Mezzanine Loans and Preferred Equity CRE Debt Securities Net Leased and Other Real Estate Corporate (1) Total Six Months Ended June 30, 2022 Net interest income (expense) $ 61,428 $ 2,021 $ — $ (1,301) $ 62,148 Property and other income 199 352 45,974 486 47,011 Property operating expense — — (11,990) — (11,990) Transaction, investment and servicing expense (2,011) 29 (152) 28 (2,106) Interest expense on real estate — — (14,673) — (14,673) Depreciation and amortization — — (17,215) (99) (17,314) Increase of current expected credit loss reserve (9,277) — — — (9,277) Compensation and benefits — — — (16,494) (16,494) Operating expense (139) (285) (88) (7,907) (8,419) Other gain (loss), net 21,355 — 13,929 (664) 34,620 Income (loss) before equity in earnings of unconsolidated ventures and income taxes 71,555 2,117 15,785 (25,951) 63,506 Equity in earnings of unconsolidated ventures 25 — — — 25 Income tax expense (353) — (148) — (501) Net income (loss) $ 71,227 $ 2,117 $ 15,637 $ (25,951) $ 63,030 Senior and Mezzanine Loans and Preferred Equity CRE Debt Securities Net Leased and Other Real Estate Corporate (1) Total Six Months Ended June 30, 2021 Net interest income (expense) $ 48,845 $ 3,632 $ — $ (2,038) $ 50,439 Property and other income 180 53 50,605 838 51,676 Management fee expense — — — (9,596) (9,596) Property operating expense — — (14,869) — (14,869) Transaction, investment and servicing expense (1,252) (167) (177) (1,336) (2,932) Interest expense on real estate — — (16,410) — (16,410) Depreciation and amortization — — (19,487) (46) (19,533) Increase of current expected credit loss reserve (4,425) — — — (4,425) Compensation and benefits — — — (16,839) (16,839) Operating expense (540) (946) (31) (8,292) (9,809) Restructuring charges — — — (109,321) (109,321) Unrealized gain on mortgage loans and obligations held in securitization trusts, net — 28,154 — — 28,154 Realized loss on mortgage loans and obligations held in securitization trusts, net — (19,516) — — (19,516) Other gain (loss), net (400) (859) 10,462 — 9,203 Income (loss) before equity in earnings of unconsolidated ventures and income taxes 42,408 10,351 10,093 (146,630) (83,778) Equity in earnings (loss) of unconsolidated ventures (36,066) (200) — — (36,266) Income tax benefit — 1,826 109 — 1,935 Net income (loss) $ 6,342 $ 11,977 $ 10,202 $ (146,630) $ (118,109) _________________________________________ (1) Includes income earned from CRE securities purchased at a discount, recognized using the effective interest method had the transaction been recorded as an available for sale security, at amortized cost. The following table presents total assets by segment as of June 30, 2022 and December 31, 2021 (dollars in thousands): Total Assets Senior and Mezzanine Loans and Preferred Equity (1) CRE Debt Securities (2) Net Leased and Other Real Estate Corporate (3) Total June 30, 2022 $ 3,910,416 $ 741,747 $ 872,190 $ 315,739 $ 5,840,092 December 31, 2021 3,589,325 840,215 963,369 245,460 5,638,369 _________________________________________ (1) Includes investments in unconsolidated ventures totaling $16.2 million as of December 31, 2021. (2) Includes PE Investments totaling $4.4 million as of June 30, 2022 and December 31, 2021. (3) Includes cash, unallocated receivables, deferred costs and other assets, net and the elimination of the subordinate tranches of a securitization trust in consolidation. Geography Geography is generally defined as the location in which the income producing assets reside or the location in which income generating services are performed. Geography information on total income includes equity in earnings of unconsolidated ventures. Geography information on total income and long lived assets are presented as follows (dollars in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Total income by geography: United States $ 80,758 $ 67,564 $ 154,202 $ 138,515 Europe 4,614 (26,132) 9,583 (19,731) Total (1) $ 85,372 $ 41,432 $ 163,785 $ 118,784 June 30, 2022 December 31, 2021 Long-lived assets by geography: United States $ 542,359 $ 553,368 Europe 258,073 294,824 Total (2) $ 800,432 $ 848,192 _________________________________________ (1) Includes interest income, interest income on mortgage loans held in securitization trusts, property and other income and equity in earnings of unconsolidated ventures. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The Company’s net income (loss) and weighted average shares outstanding for the three and six months ended June 30, 2022 and 2021 consist of the following (dollars in thousands, except per share data): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Net income (loss) $ 34,631 $ (23,616) $ 63,030 $ (118,109) Net (income) loss attributable to noncontrolling interests: Investment Entities 15 3,459 (7) 3,685 Operating Partnership (359) 437 (1,013) 2,390 Net income (loss) attributable to BrightSpire Capital, Inc. common stockholders $ 34,287 $ (19,720) $ 62,010 $ (112,034) Numerator: Net (income) loss allocated to participating securities (non-vested shares) $ (687) $ — $ (797) $ — Net income (loss) attributable to common stockholders $ 33,600 $ (19,720) $ 61,213 $ (112,034) Denominator: Weighted average shares outstanding - basic (1) 127,756 128,298 128,052 128,297 Weighted average shares outstanding - diluted 129,595 128,298 129,669 128,297 Net income (loss) per common share - basic $ 0.26 $ (0.15) $ 0.48 $ (0.87) Net income (loss) per common share - diluted $ 0.26 $ (0.15) $ 0.47 $ (0.87) _________________________________________ |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Dividends In July 2022, the Company paid a quarterly cash dividend of $0.20 per share of Class A common stock for the quarter ended June 30, 2022, to stockholders of record on June 30, 2022. Loan Originations Subsequent to June 30, 2022 , the Company funded three senior mortgage loans with a total commitment of $91.4 million. The average initial funded amount was $27.7 million and had a weighted average spread of SOFR plus 3.52%. Master Repurchase Facilities In July 2022, the Company amended one of its Master Repurchase Facilities to extend the maturity date to April 2025, with two one-year extension options, and to replace LIBOR with SOFR as the benchmark applicable to loans entered into prior to January 1, 2022. Also in July 2022, the Company amended another one of its Master Repurchase Facilities to extend the maturity date to July 2024, with three one-year extension options, and to replace LIBOR with SOFR as the benchmark applicable to financings entered into prior to January 1, 2022. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited interim financial statements have been prepared in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all information and footnotes required by generally accepted accounting principles in the United States of America (“GAAP”) for complete financial statements. These statements reflect all normal and recurring adjustments which, in the opinion of management, are necessary to present fairly the financial position, results of operations and cash flows of the Company for the interim periods presented. However, the results of operations for the interim period presented are not necessarily indicative of the results that may be expected for the year ending December 31, 2022, or any other future period. These interim financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in, or presented as exhibits to, the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. |
Reclassifications | Reclassifications Certain prior period amounts have been reclassified from operating expense to compensation and benefits and from investment in unconsolidated ventures to other assets in the consolidated financial statements to conform to current period presentation. This reclassification did not affect the Company’s financial position, results of operations or cash flows. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates and assumptions. |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its controlled subsidiaries. The portions of the equity, net income and other comprehensive income of consolidated subsidiaries that are not attributable to the parent are presented separately as amounts attributable to noncontrolling interests in the consolidated financial statements. The Company consolidates entities in which it has a controlling financial interest by first considering if an entity meets the definition of a variable interest entity (“VIE”) for which the Company is deemed to be the primary beneficiary, or if the Company has the power to control an entity through a majority of voting interest or through other arrangements. |
Variable Interest Entities | Variable Interest Entities Variable Interest Entities— A VIE is an entity that either (i) lacks sufficient equity to finance its activities without additional subordinated financial support from other parties; (ii) whose equity holders lack the characteristics of a controlling financial interest; or (iii) is established with non-substantive voting rights. A VIE is consolidated by its primary beneficiary, which is defined as the party who has a controlling financial interest in the VIE through (a) power to direct the activities of the VIE that most significantly affect the VIE’s economic performance, and (b) obligation to absorb losses or right to receive benefits of the VIE that could be significant to the VIE. The Company also considers interests held by its related parties, including de facto agents. The Company assesses whether it is a member of a related party group that collectively meets the power and benefits criteria and, if so, whether the Company is most closely associated with the VIE. In performing the related party analysis, the Company considers both qualitative and quantitative factors, including, but not limited to: the amount and characteristics of its investment relative to the related party; the Company’s and the related party’s ability to control or significantly influence key decisions of the VIE including consideration of involvement by de facto agents; the obligation or likelihood for the Company or the related party to fund operating losses of the VIE; and the similarity and significance of the VIE’s business activities to those of the Company and the related party. The determination of whether an entity is a VIE, and whether the Company is the primary beneficiary, may involve significant judgment, including the determination of which activities most significantly affect the entities’ performance, and estimates about the current and future fair values and performance of assets held by the VIE. Voting Interest Entities— Unlike VIEs, voting interest entities have sufficient equity to finance their activities and equity investors exhibit the characteristics of a controlling financial interest through their voting rights. The Company consolidates such entities when it has the power to control these entities through ownership of a majority of the entities’ voting interests or through other arrangements. At each reporting period, the Company reassesses whether changes in facts and circumstances cause a change in the status of an entity as a VIE or voting interest entity, and/or a change in the Company’s consolidation assessment. Changes in consolidation status are applied prospectively. An entity may be consolidated as a result of this reassessment, in which case, the assets, liabilities and noncontrolling interest in the entity are recorded at fair value upon initial consolidation. Any existing equity interest held by the Company in the entity prior to the Company obtaining control will be remeasured at fair value, which may result in a gain or loss recognized upon initial consolidation. However, if the consolidation represents an asset acquisition of a voting interest entity, the Company’s existing interest in the acquired assets, if any, is not remeasured to fair value but continues to be carried at historical cost. The Company may also deconsolidate a subsidiary as a result of this reassessment, which may result in a gain or loss recognized upon deconsolidation depending on the carrying values of deconsolidated assets and liabilities compared to the fair value of any interests retained. As of June 30, 2022 and December 31, 2021, the Company has identified certain consolidated and unconsolidated VIEs. Assets of each of the VIEs, other than the OP, may only be used to settle obligations of the respective VIE. Creditors of each of the VIEs have no recourse to the general credit of the Company. Consolidated VIEs The Company’s operating subsidiary, the OP, is a limited liability company that has governing provisions that are the functional equivalent of a limited partnership. Following the redemption of the outstanding membership units in the OP held by an unaffiliated third party during the three months ended June 30, 2022, there were no noncontrolling interests in the OP at June 30, 2022 and as of June 30, 2022, the Company holds all of the membership interests in the OP and the OP is no longer a VIE. The Company is the managing member of the OP and exercises full responsibility, discretion and control over the day-to-day management of the OP and has the power to direct the core activities of the OP that most significantly affect the OP’s performance, and through its ownership interest in the OP, has both the right to receive benefits from and the obligation to absorb losses of the OP. Accordingly, the Company is the primary beneficiary of the OP and consolidates the OP. As the Company conducts its business and holds its assets and liabilities through the OP, the total assets and liabilities of the OP represent substantially all of the total consolidated assets and liabilities of the Company. See “Noncontrolling Interests” below for further details on the redemption of OP units during the three months ended June 30, 2022. Other consolidated VIEs include the Investing VIEs (as defined and discussed below) and certain operating real estate properties that have noncontrolling interests. At June 30, 2022 and December 31, 2021, the noncontrolling interests in the operating real estate properties represent third party joint venture partners with ownership ranging from 5.0% to 11.0%. These noncontrolling interests do not have substantive kick-out nor participating rights. Investing VIEs The Company’s investments in securitization financing entities (“Investing VIEs”) include subordinate first-loss tranches of securitization trusts, which represent interests in such VIEs. Investing VIEs are structured as pass through entities that receive principal and interest payments from the underlying debt collateral assets and distribute those payments to the securitization trust’s certificate holders, including the most subordinate tranches of the securitization trust. Generally, a securitization trust designates the most junior subordinate tranche outstanding as the controlling class, which entitles the holder of the controlling class to unilaterally appoint and remove the special servicer for the trust, and as such may qualify as the primary beneficiary of the trust. If it is determined that the Company is the primary beneficiary of an Investing VIE as a result of acquiring the subordinate first-loss tranches of the securitization trust, the Company would consolidate the assets, liabilities, income and expenses of the entire Investing VIE. The assets held by an Investing VIE are restricted and can only be used to fulfill its own obligations. The obligations of an Investing VIE have neither any recourse to the general credit of the Company as the consolidating parent entity of an Investing VIE, nor to any of the Company’s other consolidated entities. As of June 30, 2022, the Company held subordinate tranches of a securitization trust in one Investing VIE for which the Company has determined it is the primary beneficiary because it has the power to direct the activities that most significantly impact the economic performance of the securitization trust. The Company’s subordinate tranches of the securitization trust, which represents the retained interest and related interest income, are eliminated in consolidation. As a result, all of the assets, liabilities (obligations to the certificate holders of the securitization trust, less the Company’s retained interest from the subordinate tranches of the securitization trust), income and expenses of the Investing VIE are presented in the consolidated financial statements of the Company although the Company legally owns the subordinate tranches of the securitization trust only. Regardless of the presentation, the Company’s consolidated financial statements of operations ultimately reflect the net income attributable to its retained interest in the subordinate tranches of the securitization trust. The Company elected the fair value option for the initial recognition of the assets and liabilities of its consolidated Investing VIE. Interest income and interest expense associated with the Investing VIE are presented separately on the consolidated statements of operations, and the assets and liabilities of the Investing VIE are separately presented as “Mortgage loans held in securitization trusts, at fair value” and “Mortgage obligations issued by securitization trusts, at fair value,” respectively, on the consolidated balance sheets. Refer to Note 13, “Fair Value” for further discussion. The Company has adopted guidance issued by the Financial Accounting Standards Board (“FASB”), allowing the Company to measure both the financial assets and liabilities of a qualifying collateralized financing entity (“CFE”), such as its Investing VIE, using the fair value of either the CFE’s financial assets or financial liabilities, whichever is more observable. A CFE is a VIE that holds financial assets, issues beneficial interests in those assets and has no more than nominal equity, and the beneficial interests have contractual recourse only to the related assets of the CFE. As the liabilities of the Company’s Investing VIE are marketable securities with observable trade data, their fair value is more observable and is referenced to determine fair value of the assets of its Investing VIE. Refer to Note 13, “Fair Value” for further discussion. Unconsolidated VIEs During the three months ended June 30, 2022, the Company sold its one remaining unconsolidated VIE. Refer to Note 7, “Restricted Cash, Other Assets and Accrued and Other Liabilities” for further discussion of the sale. As of December 31, 2021, the Company identified unconsolidated VIEs related to its CRE debt investments. Based on management’s analysis, the Company determined that it is not the primary beneficiary of such VIEs. Accordingly, the VIEs are not consolidated in the Company’s financial statements as of December 31, 2021. Assets of each of the VIEs may only be used to settle obligations of the respective VIE. Creditors of each of the VIEs have no recourse to the general credit of the Company. As of June 30, 2022, the Company has no remaining obligations to unconsolidated VIEs. |
Noncontrolling Interests | Noncontrolling Interests Noncontrolling Interests in Investment Entities— This represents interests in consolidated investment entities held by third party joint venture partners. Allocation of net income or loss is generally based upon relative ownership interests held by equity owners in each investment entity, or based upon contractual arrangements that may provide for disproportionate allocation of economic returns among equity interests, including using a hypothetical liquidation at book value (“HLBV”) basis, where applicable and substantive. HLBV uses a balance sheet approach, which measures each party’s capital account at the end of a period assuming that the subsidiary was liquidated or sold at book value. Each party’s share of the subsidiary’s earnings or loss is calculated by measuring the change in the party’s capital account from the beginning of the period in question to the end of period, adjusting for effects of distributions and new investments. Noncontrolling Interests in the Operating Partnership (“OP”)— Noncontrolling interests in the OP are allocated a share of net income or loss in the OP based on their weighted average ownership interest in the OP during the period. Noncontrolling interests in the OP have the right to require the OP to redeem part or all of the membership units in the OP for cash based on the market value of an equivalent number of shares of Class A common stock at the time of redemption, or at the Company’s election as managing member of the OP, through the issuance of shares of Class A common stock on a one-for-one basis. At the end of each reporting period, noncontrolling interests in the OP were adjusted to reflect their ownership percentage in the OP at the end of the period, through a reallocation between controlling and noncontrolling interests in the OP, as applicable. Through February 2022, the noncontrolling interests in the OP were held by an affiliate of DigitalBridge, after which such entity was sold to an unaffiliated third party. During the three months ended June 30, 2022, the Company redeemed the 3.1 million outstanding membership units in the OP held by such entity at a price of $8.25 per unit for a total cost of $25.4 million. Following this redemption, the noncontrolling interests in the operating partnership were reclassified to additional paid-in capital and accumulated other comprehensive income on the Company’s consolidated balance sheet and there are no noncontrolling interests in the OP. As of June 30, 2022, there were no remaining noncontrolling interests in the OP and the OP was wholly-owned by the Company directly, and indirectly through the Company’s wholly-owned subsidiary, BRSP-T LLC. |
Comprehensive Income (Loss) | Comprehensive Income (Loss) The Company reports consolidated comprehensive income (loss) in separate statements following the consolidated statements of operations. Comprehensive income (loss) is defined as the change in equity resulting from net income (loss) and other comprehensive income (“OCI”). The components of OCI include unrealized gain (loss) on CRE debt securities available for sale for which the fair value option was not elected, gain (loss) on derivative instruments used in the Company’s risk management activities used for economic hedging purposes (“designated hedges”), and gain (loss) on foreign currency translation. |
Fair Value Measurement | Fair Value Measurement Fair value is based on an exit price, defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. Where appropriate, the Company makes adjustments to estimated fair values to appropriately reflect counterparty credit risk as well as the Company’s own credit-worthiness. The estimated fair value of financial assets and financial liabilities are categorized into a three-tier hierarchy, prioritized based on the level of transparency in inputs used in the valuation techniques, as follows: Level 1— Quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2— Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in non-active markets, or valuation techniques utilizing inputs that are derived principally from or corroborated by observable data directly or indirectly for substantially the full term of the financial instrument. Level 3— At least one assumption or input is unobservable and it is significant to the fair value measurement, requiring significant management judgment or estimate. Where the inputs used to measure the fair value of a financial instrument fall into different levels of the fair value hierarchy, the financial instrument is categorized within the hierarchy based on the lowest level of input that is significant to its fair value measurement. |
Fair Value Option | Fair Value Option The fair value option provides an option to elect fair value as an alternative measurement for selected financial instruments. Gains and losses on items for which the fair value option has been elected are reported in earnings. The fair value option may be elected only upon the occurrence of certain specified events, including when the Company enters into an eligible firm commitment, at initial recognition of the financial instrument, as well as upon a business combination or consolidation of a subsidiary. The election is irrevocable unless a new election event occurs. The Company has elected the fair value option for its indirect interests in real estate through real estate private equity funds (“PE Investments”). The Company has also elected the fair value option to account for the eligible financial assets and liabilities of its consolidated Investing VIEs in order to mitigate potential accounting mismatches between the carrying value of the instruments and the related assets and liabilities to be consolidated. The Company has adopted the measurement alternative allowing the Company to measure both the financial assets and financial liabilities of a qualifying CFE it consolidates using the fair value of either the CFE’s financial assets or financial liabilities, whichever is more observable. |
Business Combinations | Business Combinations Definition of a Business— The Company evaluates each purchase transaction to determine whether the acquired assets meet the definition of a business. If substantially all of the fair value of gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets, then the set of transferred assets and activities is not a business. If not, for an acquisition to be considered a business, it would have to include an input and a substantive process that together significantly contribute to the ability to create outputs (i.e., there is a continuation of revenue before and after the transaction). A substantive process is not ancillary or minor, cannot be replaced without significant costs, effort or delay or is otherwise considered unique or scarce. To qualify as a business without outputs, the acquired assets would require an organized workforce with the necessary skills, knowledge and experience that performs a substantive process. Asset Acquisitions— For acquisitions that are not deemed to be businesses, the assets acquired are recognized based on their cost to the Company as the acquirer and no gain or loss is recognized. The cost of assets acquired in a group is allocated to individual assets within the group based on their relative fair values and does not give rise to goodwill. Transaction costs related to the acquisition of assets are included in the cost basis of the assets acquired. Such valuations require management to make significant estimates and assumptions. |
Cash and Cash Equivalents | Cash and Cash Equivalents Short-term, highly liquid investments with original maturities of three months or less are considered to be cash equivalents. The Company did not have any cash equivalents at June 30, 2022 or December 31, 2021. The Company’s cash is held with major financial institutions and may at times exceed federally insured limits. |
Restricted Cash | Restricted Cash Restricted cash consists primarily of borrower escrow deposits, tenant escrow deposits and real estate capital expenditure reserves. |
Loans Held for Investment | Loans Held for Investment The Company originates and purchases loans and preferred equity held for investment. The accounting framework for loans and preferred equity held for investment depends on the Company’s strategy whether to hold or sell the loan, whether the loan was credit-impaired at the time of acquisition, or if the lending arrangement is an acquisition, development and construction loan. Loans Held for Investment Loans and preferred equity that the Company has the intent and ability to hold for the foreseeable future are classified as held for investment. Originated loans and preferred equity are recorded at amortized cost, or outstanding unpaid principal balance plus exit fees less net deferred loan fees. Net deferred loan fees include unamortized origination and other fees charged to the borrower less direct incremental loan origination costs incurred by the Company. Purchased loans and preferred equity are recorded at amortized cost, or unpaid principal balance plus purchase premium or less unamortized discount. Costs to purchase loans and preferred equity are expensed as incurred. Interest Income— Interest income is recognized based upon contractual interest rate and unpaid principal balance of the loans and preferred equity investments. Net deferred loan fees on originated loans and preferred equity investments are deferred and amortized as adjustments to interest income over the expected life of the loans and preferred equity investments using the effective yield method. Premium or discount on purchased loans and preferred equity investments are amortized as adjustments to interest income over the expected life of the loans and preferred equity investments using the effective yield method. When a loan or preferred equity investment is prepaid, prepayment fees and any excess of proceeds over the carrying amount of the loan or preferred equity investment is recognized as additional interest income. The Company has debt investments in its portfolio that contain a payment-in-kind (“PIK”) provision. Contractual PIK interest, which represents contractually deferred interest added to the loan balance that is due at the end of the loan term, is generally recorded on an accrual basis to the extent such amounts are expected to be collected. The Company will generally cease accruing PIK interest if there is insufficient value to support the accrual or management does not expect the borrower to be able to pay all principal and interest due. Nonaccrual— Accrual of interest income is suspended on nonaccrual loans and preferred equity investments. Loans and preferred equity investments that are past due 90 days or more as to principal or interest, or where reasonable doubt exists as to timely collection, are generally considered nonperforming and placed on nonaccrual status. Interest receivable is reversed against interest income when loans and preferred equity investments are placed on nonaccrual status. Interest collected is recognized on a cash basis by crediting income when received; or if ultimate collectability of loan and preferred equity principal is uncertain, interest collected is recognized using a cost recovery method by applying interest collected as a reduction to loan and preferred equity carrying value. Loans and preferred equity investments may be restored to accrual status when all principal and interest are current and full repayment of the remaining contractual principal and interest are reasonably assured. Loans Held for Sale Loans that the Company intends to sell or liquidate in the foreseeable future are classified as held for sale. Loans held for sale are carried at the lower of amortized cost or fair value less disposal cost, with valuation changes recognized as impairment loss. Loans held for sale are not subject to Current Expected Credit Losses (“CECL”) reserves. Net deferred loan origination fees and loan purchase premiums or discounts are deferred and capitalized as part of the carrying value of the held for sale loan until the loan is sold, therefore included in the periodic valuation adjustments based on lower of cost or fair value less disposal cost. At June 30, 2022 and December 31, 2021, the Company had no loans classified as held for sale. Acquisition, Development and Construction (“ADC”) Arrangements The Company provides loans to third party developers for the acquisition, development and construction of real estate. Under an ADC arrangement, the Company participates in the expected residual profits of the project through the sale, refinancing or other use of the property. The Company evaluates the characteristics of each ADC arrangement, including its risks and rewards, to determine whether they are more similar to those associated with a loan or an investment in real estate. ADC arrangements with characteristics implying loan classification are presented as loans held for investment and result in the recognition of interest income. ADC arrangements with characteristics implying real estate joint ventures are presented as investments in unconsolidated joint ventures and are accounted for using the equity method. The classification of each ADC arrangement as either loan receivable or real estate joint venture involves significant judgment and relies on various factors, including market conditions, amount and timing of expected residual profits, credit enhancements in the form of guaranties, estimated fair value of the collateral, and significance of borrower equity in the project, among others. The classification of ADC arrangements is performed at inception, and periodically reassessed when significant changes occur in the circumstances or conditions described above. |
Operating Real Estate | Operating Real Estate Real Estate Acquisitions— Real estate acquired in acquisitions that are deemed to be business combinations is recorded at the fair values of the acquired components at the time of acquisition, allocated among land, buildings, improvements, equipment and lease-related tangible and identifiable intangible assets and liabilities, including forgone leasing costs, in-place lease values and above- or below-market lease values. Real estate acquired in acquisitions that are deemed to be asset acquisitions is recorded at the total value of consideration transferred, including transaction costs, and allocated to the acquired components based upon relative fair value. The estimated fair value of acquired land is derived from recent comparable sales of land and listings within the same local region based on available market data. The estimated fair value of acquired buildings and building improvements is derived from comparable sales, discounted cash flow analysis using market-based assumptions, or replacement cost, as appropriate. The fair value of site and tenant improvements is estimated based upon current market replacement costs and other relevant market rate information. Real Estate Held for Investment Real estate held for investment is carried at cost less accumulated depreciation. Costs Capitalized or Expensed— Expenditures for ordinary repairs and maintenance are expensed as incurred, while expenditures for significant renovations that improve or extend the useful life of the asset are capitalized and depreciated over their estimated useful lives. Depreciation— Real estate held for investment, other than land, is depreciated on a straight-line basis over the estimated useful lives of the assets, as follows: Real Estate Assets Term Building (fee interest) 28 to 40 years Building leasehold interests Lesser of remaining term of the lease or remaining life of the building Building improvements Lesser of the useful life or remaining life of the building Land improvements 1 to 15 years Tenant improvements Lesser of the useful life or remaining term of the lease Furniture, fixtures and equipment 2 to 8 years Impairment— The Company evaluates its real estate held for investment for impairment periodically or whenever events or changes in circumstances indicate that the carrying amounts may not be recoverable. The Company evaluates real estate for impairment generally on an individual property basis. If an impairment indicator exists, the Company evaluates the undiscounted future net cash flows that are expected to be generated by the property, including any estimated proceeds from the eventual disposition of the property. If multiple outcomes are under consideration, the Company may apply a probability-weighted approach to the impairment analysis. Based upon the analysis, if the carrying value of a property exceeds its undiscounted future net cash flows, an impairment loss is recognized for the excess of the carrying value of the property over the estimated fair value of the property. In evaluating and/or measuring impairment, the Company considers, among other things, current and estimated future cash flows associated with each property, market information for each sub-market, including, where applicable, competition levels, foreclosure levels, leasing trends, occupancy trends, lease or room rates, and the market prices of similar properties recently sold or currently being offered for sale, and other quantitative and qualitative factors. Another key consideration in this assessment is the Company’s assumptions about the highest and best use of its real estate investments and its intent and ability to hold them for a reasonable period that would allow for the recovery of their carrying values. If such assumptions change and the Company shortens its expected hold period, this may result in the recognition of impairment losses. See Note 5, “Real Estate, net and Real Estate Held for Sale” and Note 13, “Fair Value” for further detail. Real Estate Held for Sale Real estate is classified as held for sale in the period when (i) management approves a plan to sell the asset, (ii) the asset is available for immediate sale in its present condition, subject only to usual and customary terms, (iii) a program is initiated to locate a buyer and actively market the asset for sale at a reasonable price, and (iv) completion of the sale is probable within one year. Real estate held for sale is stated at the lower of its carrying amount or estimated fair value less disposal cost, with any write-down to fair value less disposal cost recorded as an impairment loss. For any increase in fair value less disposal cost subsequent to classification as held for sale, the impairment loss may be reversed, but only up to the amount of cumulative loss previously recognized. Depreciation is not recorded on assets classified as held for sale. At the time a sale is consummated, the excess, if any, of sale price less selling costs over carrying value of the real estate is recognized as a gain. If circumstances arise that were previously considered unlikely and, as a result, the Company decides not to sell the real estate asset previously classified as held for sale, the real estate asset is reclassified as held for investment. Upon reclassification, the real estate asset is measured at the lower of (i) its carrying amount prior to classification as held for sale, adjusted for depreciation expense that would have been recognized had the real estate been continuously classified as held for investment, and (ii) its estimated fair value at the time the Company decides not to sell. At June 30, 2022, there were no properties held for sale. At December 31, 2021, there were two properties held for sale. See Note 5, “Real Estate, net and Real Estate Held for Sale” and Note 16, “Segment Reporting” for further detail. Foreclosed Properties The Company receives foreclosed properties in full or partial settlement of loans held for investment by taking legal title or physical possession of the properties. Foreclosed properties are generally recognized at the time the real estate is received at foreclosure sale or upon execution of a deed in lieu of foreclosure. Foreclosed properties are initially measured at fair value. If the fair value of the property is lower than the carrying value of the loan, the difference is recognized as current expected credit loss reserves and the cumulative reserve on the loan is charged off. The Company periodically evaluates foreclosed properties for subsequent decrease in fair value, which is recorded as an additional impairment loss. Fair value of foreclosed properties is generally based on third party appraisals, broker price opinions, comparable sales or a combination thereof. |
Real Estate Securities | Real Estate Securities The Company classifies its CRE securities investments as available for sale on the acquisition date, which are carried at fair value. Unrealized gains (losses) are recorded as a component of accumulated OCI in the consolidated statements of equity. However, the Company has elected the fair value option for the assets and liabilities of its consolidated Investing VIEs, and as a result, any unrealized gains (losses) on the consolidated Investing VIEs are recorded in unrealized gain (loss) on mortgage loans and obligations held in securitization trusts, net in the consolidated statements of operations. As of June 30, 2022, the Company held subordinate tranches of one securitization trust, which represent the Company’s retained interest in a securitization trust that the Company consolidates under U.S. GAAP. Refer to Note 4, “Real Estate Securities” for further discussion. Impairment CRE securities for which the fair value option is elected are not evaluated for impairment as any change in fair value is recorded in the consolidated statements of operations. Realized losses on such securities are reclassified to realized loss on mortgage loans and obligations held in securitization trust, net as losses occur. |
Investments in Unconsolidated Ventures | Investments in Unconsolidated Ventures A noncontrolling, unconsolidated ownership interest in an entity may be accounted for using one of (i) equity method where applicable; (ii) fair value option if elected; (iii) fair value through earnings if fair value is readily determinable, including election of net asset value (“NAV”) practical expedient where applicable; or (iv) for equity investments without readily determinable fair values, the measurement alternative to measure at cost adjusted for any impairment and observable price changes, as applicable. Fair value changes of equity method investments under the fair value option are recorded in earnings from investments in unconsolidated ventures. Fair value changes of other equity investments, including adjustments for observable price changes under the measurement alternative, are recorded in other gain, net. Equity Method Investments The Company accounts for investments under the equity method of accounting if it has the ability to exercise significant influence over the operating and financial policies of an entity, but does not have a controlling financial interest. The equity method investment is initially recorded at cost and adjusted each period for capital contributions, distributions and the Company’s share of the entity’s net income or loss as well as other comprehensive income or loss. The Company’s share of net income or loss may differ from the stated ownership percentage interest in an entity if the governing documents prescribe a substantive non-proportionate earnings allocation formula or a preferred return to certain investors. For certain equity method investments, the Company records its proportionate share of income on a one to three month lag. Distributions of operating profits from equity method investments are reported as operating activities, while distributions in excess of operating profits are reported as investing activities in the statement of cash flows under the cumulative earnings approach. Impairment Evaluation of impairment applies to equity method investments and equity investments under the measurement alternative. If indicators of impairment exist, the Company will first estimate the fair value of its investment. In assessing fair value, the Company generally considers, among others, the estimated fair value of the investee, which is based on significant assumptions including the estimated timing and probabilities of the future cash flows of the unconsolidated joint venture, utilizing discount rates and capitalization rates. For investments under the measurement alternative, if carrying value of the investment exceeds its fair value, an impairment is deemed to have occurred. For equity method investments, further consideration is made if a decrease in value of the investment is other-than-temporary to determine if impairment loss should be recognized. Assessment of Other Than Temporary Impairment (“OTTI”) involves management judgment, including, but not limited to, consideration of the investee’s financial condition, operating results, business prospects and creditworthiness, the Company’s ability and intent to hold the investment until recovery of its carrying value. If management is unable to reasonably assert that an impairment is temporary or believes that the Company may not fully recover the carrying value of its investment, then the impairment is considered to be other-than-temporary. Investments that are other-than-temporarily impaired are written down to their estimated fair value. Impairment loss is recorded in earnings from investments in unconsolidated ventures for equity method investments and in other gain, net for investments under the measurement alternative. |
Identified Intangibles | Identifiable Intangibles In a business combination or asset acquisition, the Company may recognize identifiable intangibles that meet either or both the contractual-legal criterion or the separability criterion. An indefinite-lived intangible is not subject to amortization until such time that its useful life is determined to no longer be indefinite, at which point, it will be assessed for impairment and its adjusted carrying amount amortized over its remaining useful life. Finite-lived intangibles are amortized over their useful life in a manner that reflects the pattern in which the intangible is being consumed if readily determinable, such as based upon expected cash flows; otherwise they are amortized on a straight line basis. The useful life of all identified intangibles will be periodically reassessed and if useful life changes, the carrying amount of the intangible will be amortized prospectively over the revised useful life. Lease Intangibles— Identifiable intangibles recognized in acquisitions of operating real estate properties generally include in-place leases, above- or below-market leases and deferred leasing costs, all of which have finite lives. In-place leases generate value over and above the tangible real estate because a property that is occupied with leased space is typically worth more than a vacant building without an operating lease contract in place. The estimated fair value of acquired in-place leases is derived based on management’s assessment of costs avoided from having tenants in place, including lost rental income, rent concessions and tenant allowances or reimbursements, that hypothetically would be incurred to lease a vacant building to its actual existing occupancy level on the valuation date. The net amount recorded for acquired in-place leases is included in intangible assets and amortized on a straight-line basis as an increase to depreciation and amortization expense over the remaining term of the applicable leases. If an in-place lease is terminated, the unamortized portion is charged to depreciation and amortization expense. The estimated fair value of the above- or below-market component of acquired leases represents the present value of the difference between contractual rents of acquired leases and market rents at the time of the acquisition for the remaining lease term, discounted for tenant credit risks. Above- or below-market operating lease values are amortized on a straight-line basis as a decrease or increase to rental income, respectively, over the applicable lease terms. This includes fixed rate renewal options in acquired leases that are below-market, which are amortized to decrease rental income over the renewal period. Above- or below-market ground lease obligations are amortized on a straight-line basis as a decrease or increase to rent expense, respectively, over the applicable lease terms. If the above- or below-market operating lease values or above- or below-market ground lease obligations are terminated, the unamortized portion of the lease intangibles are recorded in rental income or rent expense, respectively. Deferred leasing costs represent management’s estimate of the avoided leasing commissions and legal fees associated with an existing in-place lease. The net amount is included in intangible assets and amortized on a straight-line basis as an increase to depreciation and amortization expense over the remaining term of the applicable lease. |
Transfers of Financial Assets | Transfers of Financial Assets Sale accounting for transfers of financial assets requires the transfer of an entire financial asset, a group of financial assets in its entirety or if a component of the financial asset is transferred, that the component meets the definition of a participating interest with characteristics that mirror the original financial asset. Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. If the Company has any continuing involvement, rights or obligations with the transferred financial asset (outside of standard representations and warranties), sale accounting requires that the transfer meets the following sale conditions: (1) the transferred asset has been legally isolated; (2) the transferee has the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred asset; and (3) the Company does not maintain effective control over the transferred asset through an agreement that provides for (a) both an entitlement and an obligation by the Company to repurchase or redeem the asset before its maturity, (b) the unilateral ability by the Company to reclaim the asset and a more than trivial benefit attributable to that ability, or (c) the transferee requiring the Company to repurchase the asset at a price so favorable to the transferee that it is probable the repurchase will occur. If sale accounting is met, the transferred financial asset is removed from the balance sheet and a net gain or loss is recognized upon sale, taking into account any retained interests. Transfers of financial assets that do not meet the criteria for sale are accounted for as financing transactions, or secured borrowing. |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities The Company uses derivative instruments to manage its foreign currency risk and interest rate risk. The Company does not use derivative instruments for speculative or trading purposes. All derivative instruments are recorded at fair value and included in other assets or other liabilities on a gross basis on the balance sheet. The accounting for changes in fair value of derivatives depends upon whether or not the Company has elected to designate the derivative in a hedging relationship and the derivative qualifies for hedge accounting. The Company has economic hedges that have not been designated for hedge accounting. Changes in fair value of derivatives not designated as accounting hedges are recorded in the statement of operations in other gain, net. For designated accounting hedges, the relationships between hedging instruments and hedged items, risk management objectives and strategies for undertaking the accounting hedges as well as the methods to assess the effectiveness of the derivative prospectively and retrospectively, are formally documented at inception. Hedge effectiveness relates to the amount by which the gain or loss on the designated derivative instrument exactly offsets the change in the hedged item attributable to the hedged risk. If it is determined that a derivative is not expected to be or has ceased to be highly effective at hedging the designated exposure, hedge accounting is discontinued. Cash Flow Hedges— The Company uses interest rate caps and swaps to hedge its exposure to interest rate fluctuations in forecasted interest payments on floating rate debt. The effective portion of the change in fair value of the derivative is recorded in accumulated other comprehensive income, while hedge ineffectiveness is recorded in earnings. If the derivative in a cash flow hedge is terminated or the hedge designation is removed, related amounts in accumulated other comprehensive income (loss) are reclassified into earnings. Net Investment Hedges— The Company uses foreign currency hedges to protect the value of its net investments in foreign subsidiaries or equity method investees whose functional currencies are not U.S. dollars. Changes in the fair value of derivatives used as hedges of net investment in foreign operations, to the extent effective, are recorded in the cumulative translation adjustment account within accumulated other comprehensive income (loss). At the end of each quarter, the Company reassesses the effectiveness of its net investment hedges and as appropriate, dedesignates the portion of the derivative notional amount that is in excess of the beginning balance of its net investments as undesignated hedges. |
Financing Costs | Financing CostsFinancing costs primarily include debt discounts and premiums as well as deferred financing costs. Deferred financing costs represent commitment fees, legal and other third-party costs associated with obtaining financing. Costs related to revolving credit facilities are recorded in other assets and are amortized to interest expense using the straight-line basis over the term of the facility. Costs related to other borrowings are recorded net against the carrying value of such borrowings and are amortized to interest expense using the effective interest method. Unamortized deferred financing costs are expensed to realized gain (loss) when the associated facility is repaid before maturity. Costs incurred in seeking financing transactions, which do not close, are expensed in the period in which it is determined that the financing will not occur. |
Revenue Recognition | Revenue Recognition Property Operating Income Property operating income includes the following: Rental Income— Rental income is recognized on a straight-line basis over the non-cancellable term of the related lease which includes the effects of minimum rent increases and rent abatements under the lease. Rents received in advance are deferred. When it is determined that the Company is the owner of tenant improvements, the cost to construct the tenant improvements, including costs paid for or reimbursed by the tenants, is capitalized. For tenant improvements owned by the Company, the amount funded by or reimbursed by the tenants are recorded as deferred revenue, which is amortized on a straight-line basis as additional rental income over the term of the related lease. Rental income recognition commences when the leased space is substantially ready for its intended use and the tenant takes possession of the leased space. When it is determined that the tenant is the owner of tenant improvements, the Company’s contribution towards those improvements is recorded as a lease incentive, included in deferred leasing costs and intangible assets on the balance sheet, and amortized as a reduction to rental income on a straight-line basis over the term of the lease. Rental income recognition commences when the tenant takes possession of the lease space. Tenant Reimbursements— In net lease arrangements, the tenant is generally responsible for operating expenses related to the property, including real estate taxes, property insurance, maintenance, repairs and improvements. Costs reimbursable from tenants and other recoverable costs are recognized as revenue in the period the recoverable costs are incurred. When the Company is the primary obligor with respect to purchasing goods and services for property operations and has discretion in selecting the supplier and retains credit risk, tenant reimbursement revenue and property operating expenses are presented on a gross basis in the statements of operations. For certain triple net leases where the lessee self-manages the property, hires its own service providers and retains credit risk for routine maintenance contracts, no reimbursement revenue and expense are recognized. Hotel Operating Income— Hotel operating income includes room revenue, food and beverage sales and other ancillary services. Revenue is recognized upon occupancy of rooms, consummation of sales and provision of services. Real Estate Securities Interest income is recognized using the effective interest method with any premium or discount amortized or accreted through earnings based on expected cash flow through the expected maturity date of the security. On a quarterly basis, the Company reviews, and if appropriate, adjusts its cash flow projections based on inputs and analyses received from external sources, internal models, and the Company’s judgment about prepayment rates, the timing and amount of credit losses and other factors. Changes in the amount or timing of cash flows from those originally projected, or from those estimated at the last evaluation date, are considered to be either favorable changes or adverse changes. |
Foreign Currency | Foreign Currency Assets and liabilities denominated in a foreign currency for which the functional currency is a foreign currency are translated using the exchange rate in effect at the balance sheet date and the corresponding results of operations for such entities are translated using the average exchange rate in effect during the period. The resulting foreign currency translation adjustments are recorded as a component of accumulated other comprehensive income or loss in stockholders’ equity. Upon sale, complete or substantially complete liquidation of a foreign subsidiary, or upon partial sale of a foreign equity method investment, the translation adjustment associated with the investment, or a proportionate share related to the portion of equity method investment sold, is reclassified from accumulated other comprehensive income or loss into earnings. Assets and liabilities denominated in a foreign currency for which the functional currency is the U.S. dollar are remeasured using the exchange rate in effect at the balance sheet date and the corresponding results of operations for such entities are remeasured using the average exchange rate in effect during the period. The resulting foreign currency remeasurement adjustments are recorded in other gain, net on the consolidated statements of operations. Disclosures of non-U.S. dollar amounts to be recorded in the future are translated using exchange rates in effect at the date of the most recent balance sheet presented. |
Equity Based Compensation | Equity-Based Compensation Equity-classified stock awards granted to executive officers and both independent and non-independent directors are based on the closing price of the Class A common stock on the grant date and recognized on a straight-line basis over the requisite service period of the awards for restricted stock awards. For performance stock units (“PSUs”) the fair value is based on a Monte Carlo simulation as of the grant date and expense is recognized on a straight-line basis over the measurement period. See Note 10, “Equity-Based Compensation” for further discussion. The compensation expense is adjusted for actual forfeitures upon occurrence. Equity-based compensation is classified within compensation and benefits in the consolidated statement of operations. |
Earnings Per Share | Earnings Per ShareThe Company presents both basic and diluted earnings per share (“EPS”) using the two-class method. Basic EPS is calculated by dividing earnings allocated to common shareholders, as adjusted for unallocated earnings attributable to certain participating securities, if any, by the weighted-average number of common shares outstanding during the period. Diluted EPS is based on the weighted-average number of common shares and the effect of potentially dilutive common share equivalents outstanding during the period. The two-class method is an allocation formula that determines earnings per share for each share of common stock and participating securities according to dividends declared and participation rights in undistributed earnings. Under this method, all earnings (distributed and undistributed) are allocated to common shares and participating securities based on their respective rights to receive dividends. The Company has certain share-based payment awards that contain nonforfeitable rights to dividends, which are considered participating securities for the purposes of computing EPS pursuant to the two-class method. |
Income Taxes | Income Taxes For U.S. federal income tax purposes, the Company elected to be taxed as a REIT beginning with its taxable year ended December 31, 2018. To qualify as a REIT, the Company must continually satisfy tests concerning, among other things, the real estate qualification of sources of its income, the real estate composition and values of its assets, the amounts it distributes to stockholders and the diversity of ownership of its stock. To the extent that the Company qualifies as a REIT, it generally will not be subject to U.S. federal income tax to the extent of its distributions to stockholders. The Company believes that all of the criteria to maintain the Company’s REIT qualification have been met for the applicable periods, but there can be no assurance that these criteria will continue to be met in subsequent periods. If the Company were to fail to meet these requirements, it would be subject to U.S. federal income tax and potential interest and penalties, which could have a material adverse impact on its results of operations and amounts available for distributions to its stockholders. The Company’s accounting policy with respect to interest and penalties is to classify these amounts as a component of income tax expense, where applicable. The Company may also be subject to certain state, local and franchise taxes. Under certain circumstances, U.S. federal income and excise taxes may be due on its undistributed taxable income. The Company also holds an investment in Europe which is subject to tax in each local jurisdiction. The Company made joint elections to treat certain subsidiaries as taxable REIT subsidiaries (“TRSs”) which may be subject to taxation by U.S. federal, state and local authorities. In general, a TRS of the Company may perform non-customary services for tenants, hold assets that the Company cannot hold directly and engage in most real estate or non-real estate-related business. Certain subsidiaries of the Company are subject to taxation by U.S. federal, state and local authorities for the periods presented. Income taxes are accounted for by the asset/liability approach in accordance with U.S. GAAP. Deferred taxes, if any, represent the expected future tax consequences when the reported amounts of assets and liabilities are recovered or paid. Such amounts arise from differences between the financial reporting and tax bases of assets and liabilities and are adjusted for changes in tax |
Current Expected Credit Losses ("CECL") reserve | Current Expected Credit Losses (“CECL”) reserve The CECL reserve for the Company’s financial instruments carried at amortized cost and off-balance sheet credit exposures, such as loans, loan commitments and trade receivables represents a lifetime estimate of expected credit losses. Factors considered by the Company when determining the CECL reserve include loan-specific characteristics such as loan-to-value (“LTV”) ratio, vintage year, loan term, property type, occupancy and geographic location, financial performance of the borrower, expected payments of principal and interest, as well as internal or external information relating to past events, current conditions and reasonable and supportable forecasts. The CECL reserve is measured on a collective (pool) basis when similar risk characteristics exist for multiple financial instruments. If similar risk characteristics do not exist, the Company measures the CECL reserve on an individual instrument basis. The determination of whether a particular financial instrument should be included in a pool can change over time. If a financial asset’s risk characteristics change, the Company evaluates whether it is appropriate to continue to keep the financial instrument in its existing pool or evaluate it individually. In measuring the CECL reserve for financial instruments that share similar risk characteristics, the Company primarily applies a probability of default (“PD”)/loss given default (“LGD”) model for instruments that are collectively assessed, whereby the CECL reserve is calculated as the product of PD, LGD and exposure at default (“EAD”). The Company’s model principally utilizes historical loss rates derived from a commercial mortgage backed securities database with historical losses from 1998 through March 2022 provided by a third party, Trepp LLC, forecasting the loss parameters using a scenario-based statistical approach over a reasonable and supportable forecast period of twelve months, followed by a straight-line reversion period of twelve-months back to average historical losses. For financial instruments assessed outside of the PD/LGD model on an individual basis, including when it is probable that the Company will be unable to collect the full payment of principal and interest on the instrument, the Company applies a discounted cash flow (“DCF”) methodology. For financial instruments where the borrower is experiencing financial difficulty based on the Company’s assessment at the reporting date and the repayment is expected to be provided substantially through the operation or sale of the collateral, the Company may elect to use as a practical expedient to determine the fair value of the collateral at the reporting date when determining the CECL reserve. In developing the CECL reserve for its loans held for investment, the Company considers the risk ranking of each loan and preferred equity as a key credit quality indicator. The risk rankings are based on a variety of factors, including, without limitation, underlying real estate performance and asset value, values of comparable properties, durability and quality of property cash flows, sponsor experience and financial wherewithal, and the existence of a risk-mitigating loan structure. Additional key considerations include loan-to-value ratios, debt service coverage ratios, loan structure, real estate and credit market dynamics, and risk of default or principal loss. Based on a five-point scale, the Company’s loans held for investment are rated “1” through “5,” from less risk to greater risk, and the ratings are updated quarterly. At the time of origination or purchase, loans held for investment are ranked as a “3” and will move accordingly going forward based on the ratings which are defined as follows: 1. Very Low Risk- The loan is performing as agreed. The underlying property performance has exceeded underwritten expectations with very strong net operating income (“NOI”), debt service coverage ratio, debt yield and occupancy metrics. Sponsor is investment grade, very well capitalized, and employs very experienced management team. 2. Low Risk- The loan is performing as agreed. The underlying property performance has met or exceeds underwritten expectations with high occupancy at market rents, resulting in consistent cash flow to service the debt. Strong sponsor that is well capitalized with experienced management team. 3. Average Risk- The loan is performing as agreed. The underlying property performance is consistent with underwriting expectations. The property generates adequate cash flow to service the debt, and/or there is enough reserve or loan structure to provide time for sponsor to execute the business plan. Sponsor has routinely met its obligations and has experience owning/operating similar real estate. 4. High Risk/Delinquent/Potential for Loss- The loan is in excess of 30 days delinquent and/or has a risk of a principal loss. The underlying property performance is behind underwritten expectations. Loan covenants may require occasional waivers/modifications. Sponsor has been unable to execute its business plan and local market fundamentals have deteriorated. Operating cash flow is not sufficient to service the debt and debt service payments may be coming from sponsor equity/loan reserves. 5. Impaired/Defaulted/Loss Likely- The loan is in default or a default is imminent, and has a high risk of a principal loss, or has incurred a principal loss. The underlying property performance is significantly worse than underwritten expectation and sponsor has failed to execute its business plan. The property has significant vacancy and current cash flow does not support debt service. Local market fundamentals have significantly deteriorated resulting in depressed comparable property valuations versus underwriting. The Company also considers qualitative and environmental factors, including, but not limited to, economic and business conditions, nature and volume of the loan portfolio, lending terms, volume and severity of past due loans, concentration of credit and changes in the level of such concentrations in its determination of the CECL reserve. The Company has elected to not measure a CECL reserve for accrued interest receivable as it is reversed against interest income when a loan or preferred equity investment is placed on nonaccrual status. Loans and preferred equity investments are charged off when all or a portion of the principal amount is determined to be uncollectible. Changes in the CECL reserve for the Company’s financial instruments are recorded in increase/decrease in current expected credit loss reserve on the consolidated statement of operations with a corresponding offset to the loans held for investment or as a component of other liabilities for future loan fundings recorded on the Company’s consolidated balance sheets. See Note 3, “Loans Held for Investment, net” for further detail. |
Accounting Standards Adopted in 2021 and Accounting Standards to be adopted | Accounting Standards Adopted in 2021 Income Tax Accounting— In December 2019, the FASB issued ASU No. 2019-12, Simplifying Accounting for Income Taxes . The ASU simplifies accounting for income taxes by eliminating certain exceptions to the general approach in ASC 740, Income Taxes, and clarifies certain aspects of the guidance for more consistent application. The simplifications relate to intraperiod tax allocations when there is a loss in continuing operations and a gain outside of continuing operations, accounting for tax law or tax rate changes and year-to-date losses in interim periods, recognition of deferred tax liability for outside basis difference when investment ownership changes, and accounting for franchise taxes that are partially based on income. The ASU also provides new guidance that clarifies the accounting for transactions resulting in a step-up in tax basis of goodwill, among other changes. Transition is generally prospective, other than the provision related to outside basis difference which is on a modified retrospective basis with the cumulative effect adjusted to retained earnings at the beginning of the period adopted, and franchise tax provision which is on either full or modified retrospective. ASU No. 2019-12 is effective January 1, 2021, with early adoption permitted in an interim period, to be applied to all provisions. The Company adopted this on January 1, 2021, and the impact was not material. Accounting for Certain Equity Investments— In January 2020, the FASB issued ASU No. 2020-01, Clarifying the Interactions between Topic 321 Investments-Equity Securities, Topic 323-Investments Equity Method and Joint Ventures, and Topic 815-Derivatives and Hedging . The ASU clarifies, that if as a result of an observable transaction, an equity investment under the measurement alternative is transitioned into equity method or an equity method investment is transitioned into measurement alternative, then the investment is to be remeasured immediately before and after the transaction, respectively. The ASU also clarifies that certain forward contracts or purchased options to acquire equity securities that are not deemed to be derivatives or in-substance common stock will generally be measured using the fair value principles of ASC 321 before settlement or exercise, and that an entity should not be considering how it will account for the resulting investments upon eventual settlement or exercise. ASU No. 2020-01 is to be applied prospectively, effective January 1, 2021, with early adoption permitted in an interim period. The Company adopted this on January 1, 2021, and the impact was not material. Accounting Standards to be adopted Credit Losses — In March 2022, the FASB issued ASU No. 2022-02, Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures, which eliminates the Troubled Debt Restructuring (“TDR”) model for creditors that have adopted Topic 326, CECL. The general loan modification guidance in Subtopic 310-20 will apply to all loan modifications, including modifications for borrowers experiencing financial difficulty. ASU 2022-02 also requires entities within the scope of ASC 326 to provide vintage disclosures which show the gross writeoffs recorded in the current period by origination year. ASU No. 2022-02 is effective in reporting periods beginning after December 15, 2022. The Company is currently evaluating the new vintage disclosures which will be added to the financial statements as a part of the adoption of the new guidance. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Schedule of Classification, Carrying Value and Maximum Exposure of VIEs | The following table presents the assets and liabilities recorded on the consolidated balance sheets attributable to the securitization trust as of June 30, 2022 and December 31, 2021 (dollars in thousands): June 30, 2022 December 31, 2021 Assets Mortgage loans held in a securitization trust, at fair value $ 718,335 $ 813,310 Receivables, net 3,214 3,325 Total assets $ 721,549 $ 816,635 Liabilities Mortgage obligations issued by a securitization trust, at fair value $ 682,181 $ 777,156 Accrued and other liabilities 2,930 3,032 Total liabilities $ 685,111 $ 780,188 The below table presents net income attributable to the Company’s common stockholders for the three and six months ended June 30, 2022 and 2021 generated from the Company’s investments in the subordinate tranches of the securitization trusts (dollars in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Statement of Operations Interest income on mortgage loans held in securitization trusts $ 9,721 $ 11,390 $ 19,095 $ 31,079 Interest expense on mortgage obligations issued by securitization trusts (8,586) (10,111) (17,074) (27,447) Net interest income 1,135 1,279 2,021 3,632 Operating expense (245) (161) (342) (927) Unrealized gain on mortgage loans and obligations held in securitization trusts, net — 19,516 — 28,154 Realized loss on mortgage loans and obligations held in securitization trusts, net — (19,516) — (19,516) Net income attributable to BrightSpire Capital, Inc. common stockholders $ 890 $ 1,118 $ 1,679 $ 11,343 |
Schedule of Operating Real Estate Estimated Useful Lives | Real estate held for investment, other than land, is depreciated on a straight-line basis over the estimated useful lives of the assets, as follows: Real Estate Assets Term Building (fee interest) 28 to 40 years Building leasehold interests Lesser of remaining term of the lease or remaining life of the building Building improvements Lesser of the useful life or remaining life of the building Land improvements 1 to 15 years Tenant improvements Lesser of the useful life or remaining term of the lease Furniture, fixtures and equipment 2 to 8 years |
Loans Held for Investment, net
Loans Held for Investment, net (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Receivables [Abstract] | |
Loans and Preferred Equity Held for Investment, net | The following table provides a summary of the Company’s loans held for investment, net (dollars in thousands): June 30, 2022 December 31, 2021 Unpaid Principal Balance Carrying Value Weighted Average Coupon (1) Weighted Average Maturity in Years Unpaid Principal Balance Carrying Value Weighted Average Coupon (1) Weighted Average Maturity in Years Variable rate Senior loans $ 2,092,924 $ 2,080,438 5.5 % 3.9 $ 1,576,439 $ 1,564,940 4.6 % 3.7 Securitized loans (2) 1,653,076 1,649,077 5.2 % 3.1 1,806,583 1,803,042 4.2 % 3.5 Mezzanine loans 12,000 12,120 12.8 % 0.0 12,000 12,120 11.5 % 0.7 3,758,000 3,741,635 3,395,022 3,380,102 Fixed rate Mezzanine loans 92,052 91,888 12.2 % 3.0 105,636 105,505 12.4 % 3.0 92,052 91,888 105,636 105,505 Loans held for investment 3,850,052 3,833,523 3,500,658 3,485,607 CECL reserve NA (44,378) NA (36,598) Loans held for investment, net $ 3,850,052 $ 3,789,145 $ 3,500,658 $ 3,449,009 _________________________________________ (1) Calculated based on contractual interest rate. (2) Represents loans transferred into securitization trusts that are consolidated by the Company. |
Schedule of Mortgage Loans on Real Estate | Activity relating to the Company’s loans held for investment, net was as follows (dollars in thousands): Carrying Value Balance at January 1, 2022 $ 3,449,009 Acquisitions/originations/additional funding 815,466 Loan maturities/principal repayments (472,470) Discount accretion/premium amortization 6,912 Capitalized interest (1,992) (Increase) decrease of CECL reserve (1) (9,031) Charge-off 1,251 Balance at June 30, 2022 $ 3,789,145 _________________________________________ |
Aging Summary of Loans | The following table provides an aging summary of loans held for investment at carrying values before CECL reserve (dollars in thousands): Current or Less Than 30 Days Past Due 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due (1) Total Loans June 30, 2022 $ 3,821,403 $ — $ — $ 12,120 $ 3,833,523 December 31, 2021 3,485,607 — — — 3,485,607 _________________________________________ |
Allowance for Loan Losses | The following tables provide details on the changes in CECL reserves for the three and six months ended June 30, 2022 and 2021 (dollars in thousands): Total CECL reserve at December 31, 2021 $ 36,598 Increase (decrease) in CECL reserve (1) (1,343) Charge-offs of CECL reserve (2) (1,251) CECL reserve at March 31, 2022 $ 34,004 Increase (decrease) in CECL reserve (1) 10,374 CECL reserve at June 30, 2022 $ 44,378 CECL reserve at December 31, 2020 $ 37,191 Increase (decrease) in CECL reserve (1) 3,600 CECL reserve at March 31, 2021 $ 40,791 Increase (decrease) in CECL reserve (1) 1,361 CECL reserve at June 30, 2021 $ 42,152 ________________________________________ (1) Excludes the increase (decrease) in CECL reserves related to unfunded commitments reported on the consolidated statement of operations for the three months ended: March 31, 2022: $0.5 million, June 30, 2022: $(0.3) million, March 31, 2021: $(0.4) million, June 30, 2021: $(0.2) million. (2) During the first quarter of 2022, the Company received a $36.5 million repayment on one senior loan collateralized by a student housing property, which was $1.3 million less than the unpaid principal balance. As such, during the fourth quarter of 2021, the Company had recorded a $1.3 million CECL reserve on the loan, as the loss was probable at that point in time, and was subsequently charged off in the first quarter of 2022. |
Summary of Loans and Preferred Equity Held for Investment by Year of Origination and Credit Quality Risk Ranking | The following tables provide a summary by carrying values before any CECL reserves of the Company’s loans held for investment by year of origination and credit quality risk ranking (dollars in thousands) as of June 30, 2022 and December 31, 2021, respectively. Refer to Note 2, “Summary of Significant Accounting Policies” for loans risk rating definitions. June 30, 2022 2022 2021 2020 2019 2018 and Earlier Total Senior loans Risk Rankings: 2 $ — $ 200,113 $ 58,880 $ 25,855 $ — $ 284,848 3 762,666 1,388,246 53,289 283,483 300,244 2,787,928 4 — — — 352,049 304,690 656,739 Total Senior loans 762,666 1,588,359 112,169 661,387 604,934 3,729,515 Mezzanine loans Risk Rankings: 3 17,165 — — 41,459 4,474 63,098 4 — — — 28,790 — 28,790 5 — — — — 12,120 12,120 Total Mezzanine loans 17,165 — — 70,249 16,594 104,008 Total Loans held for investment $ 779,831 $ 1,588,359 $ 112,169 $ 731,636 $ 621,528 $ 3,833,523 As of June 30, 2022, the average risk rating for loans held for investment was 3.1. December 31, 2021 2021 2020 2019 2018 2017 Total Senior loans Risk Rankings: 2 $ 242,850 $ 109,103 $ 70,811 $ — $ — $ 422,764 3 1,393,307 72,359 443,162 262,147 34,036 2,205,011 4 — — 396,395 304,477 — 700,872 5 — — 39,335 — — 39,335 Total Senior loans 1,636,157 181,462 949,703 566,624 34,036 3,367,982 Mezzanine loans Risk Rankings: 3 — — 38,796 4,489 — 43,285 4 — — 62,220 — 12,120 74,340 Total Mezzanine loans — — 101,016 4,489 12,120 117,625 Total Loans held for investment $ 1,636,157 $ 181,462 $ 1,050,719 $ 571,113 $ 46,156 $ 3,485,607 |
Real Estate Securities (Tables)
Real Estate Securities (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Classification, Carrying Value and Maximum Exposure of VIEs | The following table presents the assets and liabilities recorded on the consolidated balance sheets attributable to the securitization trust as of June 30, 2022 and December 31, 2021 (dollars in thousands): June 30, 2022 December 31, 2021 Assets Mortgage loans held in a securitization trust, at fair value $ 718,335 $ 813,310 Receivables, net 3,214 3,325 Total assets $ 721,549 $ 816,635 Liabilities Mortgage obligations issued by a securitization trust, at fair value $ 682,181 $ 777,156 Accrued and other liabilities 2,930 3,032 Total liabilities $ 685,111 $ 780,188 The below table presents net income attributable to the Company’s common stockholders for the three and six months ended June 30, 2022 and 2021 generated from the Company’s investments in the subordinate tranches of the securitization trusts (dollars in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Statement of Operations Interest income on mortgage loans held in securitization trusts $ 9,721 $ 11,390 $ 19,095 $ 31,079 Interest expense on mortgage obligations issued by securitization trusts (8,586) (10,111) (17,074) (27,447) Net interest income 1,135 1,279 2,021 3,632 Operating expense (245) (161) (342) (927) Unrealized gain on mortgage loans and obligations held in securitization trusts, net — 19,516 — 28,154 Realized loss on mortgage loans and obligations held in securitization trusts, net — (19,516) — (19,516) Net income attributable to BrightSpire Capital, Inc. common stockholders $ 890 $ 1,118 $ 1,679 $ 11,343 |
Real Estate, net and Real Est_2
Real Estate, net and Real Estate Held for Sale (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Real Estate [Abstract] | |
Schedule of Operating Real Estate Properties | The following table presents the Company’s net lease portfolio, net, as of June 30, 2022, and December 31, 2021 (dollars in thousands): June 30, 2022 December 31, 2021 Land and improvements $ 128,426 $ 134,453 Buildings, building leaseholds, and improvements 504,504 530,815 Tenant improvements 17,168 17,944 Construction-in-progress 660 660 Subtotal $ 650,758 $ 683,872 Less: Accumulated depreciation (77,467) (70,861) Net lease portfolio, net $ 573,291 $ 613,011 The following table presents the Company’s portfolio of other real estate as of June 30, 2022 and December 31, 2021 (dollars in thousands): June 30, 2022 December 31, 2021 Land and improvements $ 29,583 $ 29,582 Buildings, building leaseholds, and improvements 152,186 152,180 Tenant improvements 17,731 17,303 Furniture, fixtures and equipment 135 135 Construction-in-progress 1,651 460 Subtotal $ 201,286 $ 199,660 Less: Accumulated depreciation (32,498) (29,460) Other portfolio, net $ 168,788 $ 170,200 |
Property Operating Income | For the three and six months ended June 30, 2022 and 2021, the components of property operating income were as follows (dollars in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Lease revenues (1) Minimum lease revenue $ 19,334 $ 20,240 $ 39,068 $ 42,649 Variable lease revenue 2,388 2,449 5,214 5,229 $ 21,722 $ 22,689 $ 44,282 $ 47,878 Hotel operating income — 1,902 1,566 2,603 $ 21,722 $ 24,591 $ 45,848 $ 50,481 _________________________________________ |
Schedule of Future Minimum Rental Income under Non-cancellable Operating Leases | The following table presents approximate future minimum rental income under noncancellable operating leases, excluding variable lease revenue of tenant reimbursements, to be received over the next five years and thereafter as of June 30, 2022 (dollars in thousands): Remainder of 2022 $ 37,034 2023 70,197 2024 65,515 2025 58,966 2026 52,100 2027 and thereafter 361,832 Total $ 645,644 |
Deferred Leasing Costs and Ot_2
Deferred Leasing Costs and Other Intangibles (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets | The Company’s deferred leasing costs, other intangible assets and intangible liabilities, excluding those related to assets held for sale, at June 30, 2022 and December 31, 2021 are as follows (dollars in thousands): June 30, 2022 Carrying Amount Accumulated Amortization Net Carrying Amount Deferred Leasing Costs and Intangible Assets In-place lease values $ 75,437 $ (32,834) $ 42,603 Deferred leasing costs 28,207 (14,371) 13,836 Above-market lease values 8,359 (6,445) 1,914 $ 112,003 $ (53,650) $ 58,353 Intangible Liabilities Below-market lease values $ 16,074 $ (10,542) $ 5,532 December 31, 2021 Carrying Amount Accumulated Amortization Net Carrying Amount (1) Deferred Leasing Costs and Intangible Assets In-place lease values $ 81,869 $ (34,555) $ 47,314 Deferred leasing costs 29,863 (14,701) 15,162 Above-market lease values 10,171 (7,666) 2,505 $ 121,903 $ (56,922) $ 64,981 Intangible Liabilities Below-market lease values $ 16,166 $ (9,942) $ 6,224 _________________________________________ (1) Excludes deferred leasing costs and intangible assets and intangible liabilities related to assets held for sale at December 31, 2021. |
Schedule of Deferred Leasing Costs | The Company’s deferred leasing costs, other intangible assets and intangible liabilities, excluding those related to assets held for sale, at June 30, 2022 and December 31, 2021 are as follows (dollars in thousands): June 30, 2022 Carrying Amount Accumulated Amortization Net Carrying Amount Deferred Leasing Costs and Intangible Assets In-place lease values $ 75,437 $ (32,834) $ 42,603 Deferred leasing costs 28,207 (14,371) 13,836 Above-market lease values 8,359 (6,445) 1,914 $ 112,003 $ (53,650) $ 58,353 Intangible Liabilities Below-market lease values $ 16,074 $ (10,542) $ 5,532 December 31, 2021 Carrying Amount Accumulated Amortization Net Carrying Amount (1) Deferred Leasing Costs and Intangible Assets In-place lease values $ 81,869 $ (34,555) $ 47,314 Deferred leasing costs 29,863 (14,701) 15,162 Above-market lease values 10,171 (7,666) 2,505 $ 121,903 $ (56,922) $ 64,981 Intangible Liabilities Below-market lease values $ 16,166 $ (9,942) $ 6,224 _________________________________________ (1) Excludes deferred leasing costs and intangible assets and intangible liabilities related to assets held for sale at December 31, 2021. |
Schedule of Deferred Costs and Other Intangible Assets and Liabilities | The following table summarizes the amortization of deferred leasing costs, intangible assets and intangible liabilities for the three and six months ended June 30, 2022 and 2021 (dollars in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Above-market lease values $ (286) $ (262) $ (574) $ (666) Below-market lease values 346 470 677 692 Net increase (decrease) to property operating income $ 60 $ 208 $ 103 $ 26 In-place lease values $ 1,537 $ 1,862 $ 3,138 $ 3,627 Deferred leasing costs 748 935 1,554 1,556 Other intangibles — 129 — 172 Amortization expense $ 2,285 $ 2,926 $ 4,692 $ 5,355 |
Schedule of Future Amortization Expense | The following table presents the amortization of deferred leasing costs, intangible assets and intangible liabilities, for each of the next five years and thereafter as of June 30, 2022 (dollars in thousands): 2022 2023 2024 2025 2026 2027 and thereafter Total Above-market lease values $ (521) $ (571) $ (443) $ (265) $ (86) $ (28) $ (1,914) Below-market lease values 692 1,379 1,379 1,378 704 — 5,532 Net increase (decrease) to property operating income $ 171 $ 808 $ 936 $ 1,113 $ 618 $ (28) $ 3,618 In-place lease values $ 2,932 $ 5,054 $ 4,754 $ 4,068 $ 3,235 $ 22,560 $ 42,603 Deferred leasing costs 1,485 2,516 2,209 1,804 923 4,899 13,836 Amortization expense $ 4,417 $ 7,570 $ 6,963 $ 5,872 $ 4,158 $ 27,459 $ 56,439 |
Restricted Cash, Other Assets_2
Restricted Cash, Other Assets and Accrued and Other Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Restricted Cash | The following table presents a summary of restricted cash as of June 30, 2022 and December 31, 2021 (dollars in thousands): June 30, 2022 December 31, 2021 Restricted cash: Borrower escrow deposits $ 75,414 $ 73,344 Capital expenditure reserves 9,829 8,921 Real estate escrow reserves 3,628 2,025 Working capital and other reserves 2,003 2,310 Tenant lockboxes 800 241 Total $ 91,674 $ 86,841 |
Summary of Other Assets | The following table presents a summary of other assets as of June 30, 2022 and December 31, 2021 (dollars in thousands): June 30, 2022 December 31, 2021 Other assets: Right-of-use lease asset $ 26,670 $ 24,970 Tax receivable and deferred tax assets 22,338 26,194 Deferred financing costs, net - credit facilities 7,373 2,113 Prepaid expenses 4,407 5,069 Investments in unconsolidated ventures ($4,406 and $4,406 at fair value, respectively) 4,406 20,591 Derivative asset 3,202 1,373 Other 1,786 2,141 Total $ 70,182 $ 82,451 |
Summary of Other Liabilities | The following table presents a summary of accrued and other liabilities as of June 30, 2022 and December 31, 2021 (dollars in thousands): June 30, 2022 December 31, 2021 Accrued and other liabilities: Operating lease liability $ 27,153 $ 25,205 Current and deferred tax liability 27,080 34,612 Accounts payable, accrued expenses and other liabilities 15,974 20,168 Interest payable 8,531 11,076 Prepaid rent and unearned revenue 6,462 7,669 Unfunded CECL loan allowance 678 432 Tenant security deposits 409 424 Other 206 228 Total $ 86,493 $ 99,814 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Summary of Debt | The following table presents debt as of June 30, 2022 and December 31, 2021 (dollars in thousands): June 30, 2022 December 31, 2021 Capacity ($) Recourse vs. Non-Recourse (1) Final Contractual Principal Amount (2) Carrying Value (2) Principal Amount (2) Carrying Value (2) Securitization bonds payable, net CLNC 2019-FL1 (3) Non-recourse Aug-35 SOFR (4) + 1.66% $ 702,054 $ 699,645 $ 840,423 $ 836,812 BRSP 2021-FL1 (3) Non-recourse Aug-38 LIBOR + 1.49% 670,000 665,261 670,000 664,087 Subtotal securitization bonds payable, net 1,372,054 1,364,906 1,510,423 1,500,899 Mortgage and other notes payable, net Net lease 6 Non-recourse Oct-27 4.45% 22,840 22,840 23,117 23,117 Net lease 5 Non-recourse Nov-26 4.45% 3,247 3,188 3,282 3,216 Net lease 4 Non-recourse Nov-26 4.45% 7,005 6,877 7,081 6,939 Net lease 3 (5) Non-recourse Jan-22 6.00% — — 11,867 11,807 Net lease 6 Non-recourse Jul-23 LIBOR + 2.15% 674 661 908 889 Net lease 5 Non-recourse Aug-26 4.08% 30,376 30,199 30,639 30,442 Net lease 1 (6) Non-recourse Nov-26 4.45% 17,631 17,309 17,823 17,465 Net lease 1 (7) Non-recourse Mar-28 4.38% 11,648 11,211 11,769 11,332 Net lease 2 (8) Non-recourse Jun-25 3.91% 161,856 164,151 181,504 184,078 Net lease 3 Non-recourse Sep-33 4.77% 200,000 198,733 200,000 198,689 Other real estate 1 Non-recourse Oct-24 4.47% 104,306 104,589 105,090 105,452 Other real estate 3 Non-recourse Jan-25 4.30% 71,618 71,248 72,359 71,922 Other real estate 6 (9) Non-recourse Apr-24 LIBOR + 2.95% — — 30,000 29,859 Loan 9 (10) Non-recourse Jun-24 LIBOR + 3.00% 27,851 27,851 65,377 65,376 Subtotal mortgage and other notes payable, net 659,052 658,857 760,816 760,583 Bank credit facility Bank credit facility $ 165,000 Recourse Jan-27 (11) SOFR + 2.25% — — — — Subtotal bank credit facility — — — — Master repurchase facilities Bank 1 facility 3 $ 400,000 Limited Recourse (12) Apr-26 (13) LIBOR/SOFR + 1.82% (14) 250,162 250,162 109,915 109,915 Bank 3 facility 3 600,000 Limited Recourse (12) Apr-23 (15) LIBOR/SOFR + 1.95% (14) 396,202 396,202 157,409 157,409 Bank 7 facility 1 600,000 Limited Recourse (12) Apr-26 (16) LIBOR/SOFR + 1.79% (14) 415,795 415,795 358,181 358,181 Bank 8 facility 1 250,000 Limited Recourse (12) Jun-23 (17) LIBOR/SOFR + 2.18% (14) 158,504 158,504 177,519 177,519 Bank 9 facility 1 400,000 (18) June-27 (19) LIBOR/SOFR + 1.70% (14) 266,904 266,904 102,098 102,098 Subtotal master repurchase facilities $ 2,250,000 1,487,567 1,487,567 905,122 905,122 Subtotal credit facilities 1,487,567 1,487,567 905,122 905,122 Total $ 3,518,673 $ 3,511,330 $ 3,176,361 $ 3,166,604 _________________________________________ (1) Subject to customary non-recourse carveouts. (2) Difference between principal amount and carrying value of securitization bonds payable, net and mortgage and other notes payable, net is attributable to deferred financing costs, net and premium/discount on mortgage notes payable. (3) The Company, through indirect Cayman subsidiaries, securitized commercial mortgage loans originated by the Company. Senior notes issued by the securitization trusts were generally sold to third parties and subordinated notes retained by the Company. These securitizations are accounted for as secured financing with the underlying mortgage loans pledged as collateral. Principal payments from underlying collateral loans must be applied to repay the notes until fully paid off, irrespective of the contractual maturities on the notes. Underlying collateral loans have initial terms of two (4) As of June 17, 2021, the benchmark index interest rate was converted from the one-month London Interbank Offered Rates (“LIBOR”) to Compounded Secured Overnight Financing Rate (“SOFR”), plus a benchmark adjustment of 11.448 basis points. As of February 19, 2022, the benchmark index interest rate was converted from Compounded SOFR to Term SOFR, plus a benchmark adjustment of 11.448 basis points, conforming with the indenture agreement. (5) During the first quarter of 2022 the property was sold and the mortgage payable was repaid in full. (6) Payment terms are periodic payment of principal and interest for debt on two properties and periodic payment of interest only with principal at maturity (except for principal repayments to release collateral properties disposed) for debt on one property. (7) Represents a mortgage note collateralized by three properties. (8) As of June 30, 2022, the outstanding principal of the mortgage payable was NOK 1.6 billion , which translated to $161.9 million. (9) During the first quarter of 2022 the property was sold and the mortgage payable was repaid in full. (10) The current maturity of the note payable is June 2023, with one one-year extension available at the Company’s option, which may be subject to the satisfaction of certain customary conditions set forth in the governing documents. (11) On January 28, 2022, the Company, through its subsidiaries, including the OP, entered into an Amended and Restated Credit Agreement. Refer to “Bank Credit Facility” within this note for more details. (12) Recourse solely with respect to 25.0% of the financed amount. (13) During the second quarter of 2022, the maturity date was April 2023. In July 2022, the maturity date was extended to July 2024, with three one-year extension options, which may be exercised upon the satisfaction of certain customary conditions set forth in the governing documents. (14) Represents the weighted average spread as of June 30, 2022. The contractual interest rate depends upon asset type and characteristics and ranges from one-month LIBOR or SOFR plus 1.50% to 2.70%. (15) During the second quarter of 2022, the maturity date was April 2023. In July 2022, the maturity date was extended to April 2025, with two one-year extension options, which may be exercised upon the satisfaction of certain customary conditions set forth in the governing documents. (16) The current maturity date is April 20 25, with a one-year extension available at the option of the Company, whic h may be exercised upon the satisfaction of certain customary conditions set forth in the governing documents. (17) The current maturity date is June 2023, with no extension currently available at the option of the Company. (18) Recourse is either 25.0% or 50.0% depending on loan metrics. (19) The current maturity date is June 2025, with two one-year extensions available at the option of the Company, which may be exercised upon the satisfaction of certain customary conditions set forth in the governing documents. |
Schedule of Scheduled Principal on Debt | The following table summarizes future scheduled minimum principal payments at June 30, 2022 based on initial maturity dates or extended maturity dates to the extent criteria are met and the extension option is at the borrower’s discretion (dollars in thousands): Total Securitization Bonds Payable, Net Mortgage Notes Payable, Net Credit Facilities Remaining 2022 $ 1,311 $ — $ 1,311 $ — 2023 557,272 — 2,566 554,706 2024 134,376 — 134,376 — 2025 235,750 — 235,750 — 2026 720,557 — 54,600 665,957 2027 and thereafter 1,869,407 1,372,054 230,449 266,904 Total $ 3,518,673 $ 1,372,054 $ 659,052 $ 1,487,567 |
Equity-Based Compensation (Tabl
Equity-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Valuation Assumptions | Fair value of PSUs, including dividend equivalent rights, was determined using a Monte Carlo simulation, with the following assumptions: 2021 Grant Expected volatility (1) 86.6 % Risk free rate (2) 0.1 % Expected dividend yield (3) — _________________________________________ (1) Based upon the Company’s historical stock volatility. (2) Based upon the continuously compounded zero-coupon U.S. Treasury yield for the term coinciding with the measurement period of the award as of valuation date. (3) Based upon the dividend yield in place as of the grant date. |
Summary of Awards Granted or Vested | The table below summarizes the Company’s awards granted, forfeited or vested under the 2022 Plan during the six months ended June 30, 2022: Number of Shares Weighted Average Grant Date Fair Value Restricted Stock PSUs Total Restricted Stock PSUs Unvested shares at December 31, 2021 1,482,094 272,000 1,754,094 $ 12.35 $ 11.96 Granted 1,524,482 — 1,524,482 8.59 — Vested (605,422) — (605,422) 9.18 — Unvested shares at June 30, 2022 2,401,154 272,000 2,673,154 10.23 11.96 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
Summary of Distributions Declared | During the six months ended June 30, 2022, the Company declared the following dividend on its common stock: Declaration Date Record Date Payment Date Per Share March 15, 2022 March 31, 2022 April 15, 2022 $0.19 June 15, 2022 June 30, 2022 July 15, 2022 $0.20 |
Reclassification out of Accumulated Other Comprehensive Income | The following tables present the changes in each component of Accumulated Other Comprehensive Income (Loss) (“AOCI”) attributable to stockholders and noncontrolling interests in the OP, net of immaterial tax effect. Changes in Components of AOCI - Stockholders (in thousands) Unrealized gain on net investment hedges Foreign currency translation gain (loss) Total AOCI at December 31, 2021 $ 17,893 $ (9,107) $ 8,786 Other comprehensive income — 660 660 AOCI at March 31, 2022 $ 17,893 $ (8,447) $ 9,446 Other comprehensive income (loss) before OP reclassification — (9,810) (9,810) Amounts reclassified from OP 710 (856) (146) Net current period OCI 710 (10,666) (9,956) AOCI at June 30, 2022 $ 18,603 $ (19,113) $ (510) (in thousands) Unrealized gain (loss) on real estate securities, available for sale Unrealized gain on net investment hedges Foreign currency translation gain (loss) Total AOCI at December 31, 2020 $ 275 $ 47,127 $ 7,186 $ 54,588 Other comprehensive income (loss) before reclassification (1,035) — (7,467) (8,502) Amounts reclassified from AOCI 760 — — 760 Net current period OCI (275) — (7,467) (7,742) AOCI at March 31, 2021 $ — $ 47,127 $ (281) $ 46,846 Other comprehensive income — — 1,966 1,966 AOCI at June 30, 2021 $ — $ 47,127 $ 1,685 $ 48,812 Changes in Components of AOCI - Noncontrolling Interests in the OP (in thousands) Unrealized gain on net investment hedges Foreign currency translation gain (loss) Total AOCI at December 31, 2021 $ 710 $ (872) $ (162) Other comprehensive income — 16 16 AOCI at March 31, 2022 $ 710 $ (856) $ (146) Other comprehensive income (loss) before Stockholders reclassification — — — Amounts reclassified to Stockholders (710) 856 146 Net current period OCI (710) 856 146 AOCI at June 30, 2022 $ — $ — $ — (in thousands) Unrealized gain (loss) on real estate securities, available for sale Unrealized gain (loss) on net investment hedges Foreign currency translation loss Total AOCI at December 31, 2020 $ (73) $ 1,403 $ (272) $ 1,058 Other comprehensive income (loss) 98 — (288) (190) Amounts reclassified from AOCI (25) — — (25) Net current period OCI 73 — (288) (215) AOCI at March 31, 2021 $ — $ 1,403 $ (560) $ 843 Other comprehensive income (loss) — — (89) (89) AOCI at June 30, 2021 $ — $ 1,403 $ (649) $ 754 Changes in Components of AOCI - Noncontrolling Interests in investment entities (in thousands) Foreign currency translation gain (loss) Total AOCI at December 31, 2021 $ 1,872 $ 1,872 Other comprehensive income before reclassification — — Amounts reclassified from AOCI (1,872) (1,872) Net current period OCI (1,872) (1,872) AOCI at March 31, 2022 $ — $ — Other comprehensive income — — AOCI at June 30, 2022 $ — $ — (in thousands) Foreign currency translation gain (loss) Total AOCI at December 31, 2020 $ 2,193 $ 2,193 Other comprehensive income (loss) (776) (776) AOCI at March 31, 2021 $ 1,417 $ 1,417 Other comprehensive income 336 336 AOCI at June 30, 2021 $ 1,753 $ 1,753 The following table presents the details of the reclassifications from AOCI for the six months ended June 30, 2021: (in thousands) Component of AOCI reclassified into earnings Six Months Ended Affected Line Item in the Consolidated Statements of Operations Realized gain on sale of real estate securities $ 104 Other gain, net Impairment of real estate securities $ (967) Other gain, net |
Fair Value (Tables)
Fair Value (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Assets and Liabilities Accounted for at Fair Value on Recurring Basis | The following table presents financial assets that were accounted for at fair value on a recurring basis as of June 30, 2022 and December 31, 2021 by level within the fair value hierarchy (dollars in thousands): June 30, 2022 December 31, 2021 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Other assets - PE Investments $ — $ — $ 4,406 $ 4,406 $ — $ — $ 4,406 $ 4,406 Mortgage loans held in securitization trusts, at fair value — — 718,335 718,335 — — 813,310 813,310 Other assets - derivative assets — 3,202 — 3,202 — 1,373 — 1,373 Liabilities: Mortgage obligations issued by securitization trusts, at fair value $ — $ 682,181 $ — $ 682,181 $ — $ 777,156 $ — $ 777,156 Other liabilities - derivative liabilities — — — — — 9 — 9 |
Schedule of Changes in Level 3 | The following table presents the changes in fair value of financial assets which are measured at fair value on a recurring basis using Level 3 inputs to determine fair value for the six months ended June 30, 2022 and year ended December 31, 2021 (dollars in thousands): Six Months Ended June 30, 2022 Year Ended December 31, 2021 Other assets - PE Investments Mortgage loans held in securitization trusts (1) Other assets - PE Investments Mortgage loans held in securitization trusts Beginning balance $ 4,406 $ 813,310 $ 6,878 $ 1,768,069 Distributions/paydowns — (15,946) (2,380) (78,903) Sale of investments — — — (28,662) Deconsolidation of securitization trust (2) — — — (802,196) Equity in earnings — — (92) — Unrealized loss in earnings — (79,029) — (8,375) Realized loss in earnings — — — (36,623) Ending balance $ 4,406 $ 718,335 $ 4,406 $ 813,310 _________________________________________ (1) For the six months ended June 30, 2022, the Company recorded an unrealized loss of $79.0 million related to mortgage loans held in securitization trusts, at fair value and an unrealized gain of $79.0 million related to mortgage obligations held in securitization trusts, at fair value. (2) In April 2021, the Company sold its retained investments in the subordinate tranches of one securitization trust. As a result of the sale, the Company deconsolidated one of the securitization trusts. |
Summary of Principal Amount, Carrying Value and Fair Value of Financial Assets and Liabilities | The following table presents the principal amount, carrying value and fair value of certain financial assets and liabilities as of June 30, 2022 and December 31, 2021 (dollars in thousands): June 30, 2022 December 31, 2021 Principal Amount Carrying Value Fair Value Principal Amount Carrying Value Fair Value Financial assets: (1) Loans held for investment, net (2) $ 3,850,052 $ 3,789,145 $ 3,805,674 $ 3,500,658 $ 3,449,009 $ 3,464,060 Financial liabilities: (1) Securitization bonds payable, net $ 1,372,054 $ 1,364,906 $ 1,372,054 $ 1,510,423 $ 1,500,899 $ 1,510,423 Mortgage and other notes payable, net 659,052 658,857 659,052 760,816 760,583 760,816 Master repurchase facilities 1,487,567 1,487,567 1,487,567 905,122 905,122 905,122 _________________________________________ (1) The fair value of other financial instruments not included in this table is estimated to approximate their carrying value. (2) Excludes future funding commitments of $312.9 million and $264.9 million as of June 30, 2022 and December 31, 2021, respectively. |
Fair Value Measurements, Nonrecurring | The following table summarizes assets carried at fair value on a nonrecurring basis as of December 31, 2021 (dollars in thousands): December 31, 2021 Level 1 Level 2 Level 3 Total Loans held for investment, net (1) $ — $ — $ 38,083 $ 38,083 _________________________________________ (1) See Note 3 “Loans Held for Investment, net” for further details. |
Derivatives (Tables)
Derivatives (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Assets at Fair Value | As of June 30, 2022 and December 31, 2021, fair value of derivative assets and derivative liabilities were as follows (dollars in thousands): Non-Designated Hedges June 30, 2022 December 31, 2021 Derivative Assets Foreign exchange contracts $ 3,200 $ 1,373 Interest rate contracts 2 2 Included in other assets $ 3,202 $ 1,373 Derivative Liabilities Interest rate contracts $ — $ (9) Included in accrued and other liabilities $ — $ (9) |
Schedule of Derivative Liabilities at Fair Value | As of June 30, 2022 and December 31, 2021, fair value of derivative assets and derivative liabilities were as follows (dollars in thousands): Non-Designated Hedges June 30, 2022 December 31, 2021 Derivative Assets Foreign exchange contracts $ 3,200 $ 1,373 Interest rate contracts 2 2 Included in other assets $ 3,202 $ 1,373 Derivative Liabilities Interest rate contracts $ — $ (9) Included in accrued and other liabilities $ — $ (9) |
Schedule of Derivative Instruments | The following table summarizes the Company’s interest rate contracts as of June 30, 2022 and December 31, 2021: Type of Derivatives Notional Currency Notional Amount (in thousands) Range of Maturity Dates Non-Designated June 30, 2022 FX Forward NOK 182,748 August 2022 - May 2024 Interest Rate Swap USD $ 527 July 2023 December 31, 2021 FX Forward NOK 190,772 February 2022 - May 2024 Interest Rate Swap USD $ 30,762 April 2022 - July 2023 The table below represents the effect of the derivative financial instruments on the consolidated statements of operations for the three and six months ended June 30, 2022 and 2021 (dollars in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Other gain, net Non-designated foreign exchange contracts $ 2,116 $ 1,232 $ 1,895 $ 952 Non-designated interest rate contracts 4 5 12 18 $ 2,120 $ 1,237 $ 1,907 $ 970 |
Offsetting Derivative Assets | The following table sets forth derivative positions where the Company has a right of offset under netting arrangements with the same counterparty as of June 30, 2022 and December 31, 2021 (dollars in thousands): Gross Amounts of Assets (Liabilities) Included on Consolidated Balance Sheets Net Amounts of Assets (Liabilities) June 30, 2022 Derivative Assets Foreign exchange contracts $ 3,200 $ 3,200 Interest rate contracts 2 2 $ 3,202 $ 3,202 December 31, 2021 Derivative Assets Foreign exchange contracts $ 1,373 $ 1,373 $ 1,373 $ 1,373 Derivative Liabilities Interest rate contracts $ (9) $ (9) $ (9) $ (9) |
Offsetting Derivative Liabilities | The following table sets forth derivative positions where the Company has a right of offset under netting arrangements with the same counterparty as of June 30, 2022 and December 31, 2021 (dollars in thousands): Gross Amounts of Assets (Liabilities) Included on Consolidated Balance Sheets Net Amounts of Assets (Liabilities) June 30, 2022 Derivative Assets Foreign exchange contracts $ 3,200 $ 3,200 Interest rate contracts 2 2 $ 3,202 $ 3,202 December 31, 2021 Derivative Assets Foreign exchange contracts $ 1,373 $ 1,373 $ 1,373 $ 1,373 Derivative Liabilities Interest rate contracts $ (9) $ (9) $ (9) $ (9) |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Lease Expense | The following table presents ground lease expense, included in property operating expense, for the three and six months ended June 30, 2022 and 2021 (dollars in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Operating lease expense: Minimum lease expense $ 768 $ 761 $ 1,536 $ 1,529 Variable lease expense — — — — $ 768 $ 761 $ 1,536 $ 1,529 For the three and six months ended June 30, 2022, the following table summarizes lease expense, included in operating expense (dollars in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Corporate Offices Operating lease expense: Fixed lease expense $ 315 $ 133 $ 591 $ 133 $ 315 $ 133 $ 591 $ 133 |
Schedule of Future Minimum Rental Payments | The following table presents future minimum rental payments, excluding contingent rents, on noncancellable ground leases on real estate as of June 30, 2022 (dollars in thousands): Remainder of 2022 $ 1,554 2023 3,110 2024 2,213 2025 2,148 2026 2,073 2027 and thereafter 17,254 Total lease payments 28,352 Less: Present value discount 9,135 Operating lease liability (Note 7) $ 19,217 Corporate Offices Remainder of 2022 (1) $ 399 2023 1,239 2024 1,293 2025 1,308 2026 1,323 2027 and thereafter 3,068 Total lease payments 8,630 Less: Present value discount 694 Operating lease liability (Note 7) $ 7,936 __________________________________________ |
Segment Reporting (Tables)
Segment Reporting (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
Summary of Segment Reporting | The following tables present segment reporting for the three and six months ended June 30, 2022 and 2021 (dollars in thousands): Senior and Mezzanine Loans and Preferred Equity CRE Debt Securities Net Leased and Other Real Estate Corporate (1) Total Three Months Ended June 30, 2022 Net interest income (expense) $ 32,064 $ 1,134 $ — $ (435) $ 32,763 Property and other income 78 219 21,806 465 22,568 Property operating expense — — (5,266) — (5,266) Transaction, investment and servicing expense (961) 29 (52) 2 (982) Interest expense on real estate — — (7,117) — (7,117) Depreciation and amortization — — (8,664) (56) (8,720) Increase of current expected credit loss reserve (10,143) — — — (10,143) Compensation and benefits — — — (8,269) (8,269) Operating expense 13 (245) (56) (3,782) (4,070) Other gain, net 21,484 — 2,093 755 24,332 Income (loss) before equity in earnings of unconsolidated ventures and income taxes 42,535 1,137 2,744 (11,320) 35,096 Income tax expense (416) — (49) — (465) Net income (loss) $ 42,119 $ 1,137 $ 2,695 $ (11,320) $ 34,631 Senior and Mezzanine Loans and Preferred Equity CRE Debt Securities Net Leased and Other Real Estate Corporate (1) Total Three Months Ended June 30, 2021 Net interest income (expense) $ 25,926 $ 1,279 $ — $ (998) $ 26,207 Property and other income 181 — 24,808 920 25,909 Management fee expense — — — (2,338) (2,338) Property operating expense — — (6,758) — (6,758) Transaction, investment and servicing expense (563) — (62) (19) (644) Interest expense on real estate — — (7,777) — (7,777) Depreciation and amortization — — (9,948) (46) (9,994) Increase of current expected credit loss reserve (1,200) — — — (1,200) Compensation and benefits — — — (10,053) (10,053) Operating expense (291) (166) — (3,543) (4,000) Restructuring charges — — — (150) (150) Unrealized gain on mortgage loans and obligations held in securitization trusts, net — 19,516 — — 19,516 Realized loss on mortgage loans and obligations held in securitization trusts, net — (19,516) — — (19,516) Other gain (loss), net (400) — 1,236 — 836 Income (loss) before equity in earnings of unconsolidated ventures and income taxes 23,653 1,113 1,499 (16,227) 10,038 Equity in earnings (loss) of unconsolidated ventures (33,665) (123) — — (33,788) Income tax benefit — 49 85 — 134 Net income (loss) $ (10,012) $ 1,039 $ 1,584 $ (16,227) $ (23,616) _________________________________________ (1) Includes income earned from CRE securities purchased at a discount, recognized using the effective interest method had the transaction been recorded as an available for sale security, at amortized cost. Senior and Mezzanine Loans and Preferred Equity CRE Debt Securities Net Leased and Other Real Estate Corporate (1) Total Six Months Ended June 30, 2022 Net interest income (expense) $ 61,428 $ 2,021 $ — $ (1,301) $ 62,148 Property and other income 199 352 45,974 486 47,011 Property operating expense — — (11,990) — (11,990) Transaction, investment and servicing expense (2,011) 29 (152) 28 (2,106) Interest expense on real estate — — (14,673) — (14,673) Depreciation and amortization — — (17,215) (99) (17,314) Increase of current expected credit loss reserve (9,277) — — — (9,277) Compensation and benefits — — — (16,494) (16,494) Operating expense (139) (285) (88) (7,907) (8,419) Other gain (loss), net 21,355 — 13,929 (664) 34,620 Income (loss) before equity in earnings of unconsolidated ventures and income taxes 71,555 2,117 15,785 (25,951) 63,506 Equity in earnings of unconsolidated ventures 25 — — — 25 Income tax expense (353) — (148) — (501) Net income (loss) $ 71,227 $ 2,117 $ 15,637 $ (25,951) $ 63,030 Senior and Mezzanine Loans and Preferred Equity CRE Debt Securities Net Leased and Other Real Estate Corporate (1) Total Six Months Ended June 30, 2021 Net interest income (expense) $ 48,845 $ 3,632 $ — $ (2,038) $ 50,439 Property and other income 180 53 50,605 838 51,676 Management fee expense — — — (9,596) (9,596) Property operating expense — — (14,869) — (14,869) Transaction, investment and servicing expense (1,252) (167) (177) (1,336) (2,932) Interest expense on real estate — — (16,410) — (16,410) Depreciation and amortization — — (19,487) (46) (19,533) Increase of current expected credit loss reserve (4,425) — — — (4,425) Compensation and benefits — — — (16,839) (16,839) Operating expense (540) (946) (31) (8,292) (9,809) Restructuring charges — — — (109,321) (109,321) Unrealized gain on mortgage loans and obligations held in securitization trusts, net — 28,154 — — 28,154 Realized loss on mortgage loans and obligations held in securitization trusts, net — (19,516) — — (19,516) Other gain (loss), net (400) (859) 10,462 — 9,203 Income (loss) before equity in earnings of unconsolidated ventures and income taxes 42,408 10,351 10,093 (146,630) (83,778) Equity in earnings (loss) of unconsolidated ventures (36,066) (200) — — (36,266) Income tax benefit — 1,826 109 — 1,935 Net income (loss) $ 6,342 $ 11,977 $ 10,202 $ (146,630) $ (118,109) _________________________________________ (1) Includes income earned from CRE securities purchased at a discount, recognized using the effective interest method had the transaction been recorded as an available for sale security, at amortized cost. |
Summary of Total Assets by Segment | The following table presents total assets by segment as of June 30, 2022 and December 31, 2021 (dollars in thousands): Total Assets Senior and Mezzanine Loans and Preferred Equity (1) CRE Debt Securities (2) Net Leased and Other Real Estate Corporate (3) Total June 30, 2022 $ 3,910,416 $ 741,747 $ 872,190 $ 315,739 $ 5,840,092 December 31, 2021 3,589,325 840,215 963,369 245,460 5,638,369 _________________________________________ (1) Includes investments in unconsolidated ventures totaling $16.2 million as of December 31, 2021. (2) Includes PE Investments totaling $4.4 million as of June 30, 2022 and December 31, 2021. (3) Includes cash, unallocated receivables, deferred costs and other assets, net and the elimination of the subordinate tranches of a securitization trust in consolidation. |
Schedule of Revenue by Geographic Areas | Geography information on total income and long lived assets are presented as follows (dollars in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Total income by geography: United States $ 80,758 $ 67,564 $ 154,202 $ 138,515 Europe 4,614 (26,132) 9,583 (19,731) Total (1) $ 85,372 $ 41,432 $ 163,785 $ 118,784 |
Schedule of Long-lived Assets by Geographic Areas | June 30, 2022 December 31, 2021 Long-lived assets by geography: United States $ 542,359 $ 553,368 Europe 258,073 294,824 Total (2) $ 800,432 $ 848,192 _________________________________________ (1) Includes interest income, interest income on mortgage loans held in securitization trusts, property and other income and equity in earnings of unconsolidated ventures. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The Company’s net income (loss) and weighted average shares outstanding for the three and six months ended June 30, 2022 and 2021 consist of the following (dollars in thousands, except per share data): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Net income (loss) $ 34,631 $ (23,616) $ 63,030 $ (118,109) Net (income) loss attributable to noncontrolling interests: Investment Entities 15 3,459 (7) 3,685 Operating Partnership (359) 437 (1,013) 2,390 Net income (loss) attributable to BrightSpire Capital, Inc. common stockholders $ 34,287 $ (19,720) $ 62,010 $ (112,034) Numerator: Net (income) loss allocated to participating securities (non-vested shares) $ (687) $ — $ (797) $ — Net income (loss) attributable to common stockholders $ 33,600 $ (19,720) $ 61,213 $ (112,034) Denominator: Weighted average shares outstanding - basic (1) 127,756 128,298 128,052 128,297 Weighted average shares outstanding - diluted 129,595 128,298 129,669 128,297 Net income (loss) per common share - basic $ 0.26 $ (0.15) $ 0.48 $ (0.87) Net income (loss) per common share - diluted $ 0.26 $ (0.15) $ 0.47 $ (0.87) _________________________________________ |
Business and Organization (Deta
Business and Organization (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2022 | Jun. 30, 2021 | Mar. 31, 2022 | |
Schedule of Investments [Line Items] | ||||
Redemption amount | $ 25,383 | $ 0 | ||
BrightSpire Capital Operating Company, LLC | ||||
Schedule of Investments [Line Items] | ||||
Ownership percentage by parent (in percentage) | 97.70% | |||
Ownership percentage by noncontrolling owners (in percentage) | 2.30% | |||
Amount redeemed by noncontrolling owners (as a percentage) | 2.30% | |||
Redemption amount | $ 25,400 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2022 USD ($) variableInterestEntity property $ / shares shares | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) variableInterestEntity property | Jun. 30, 2021 USD ($) | Mar. 31, 2022 | Dec. 31, 2021 USD ($) property | |
Variable Interest Entity [Line Items] | ||||||
Number of properties held-for-sale (in properties) | property | 0 | 0 | 2 | |||
Conversion of stock, conversion ratio | 1 | |||||
Outstanding membership units redeemed (in units) | shares | 3,100,000 | |||||
Outstanding membership units redeemed (per unit) | $ / shares | $ 8.25 | |||||
Contributions from noncontrolling interests | $ 0 | $ 2,222,000 | ||||
Cash equivalents | $ 0 | 0 | $ 0 | |||
Loans held for sale | 0 | 0 | $ 0 | |||
Income tax expense (benefit) | $ 465,000 | $ (134,000) | $ 501,000 | $ (1,935,000) | ||
BrightSpire Capital Operating Company, LLC | ||||||
Variable Interest Entity [Line Items] | ||||||
Ownership percentage by noncontrolling owners (in percentage) | 2.30% | |||||
Unconsolidated VIEs | Third Party Joint Venture Partners | Minimum | ||||||
Variable Interest Entity [Line Items] | ||||||
Ownership percentage by noncontrolling owners (in percentage) | 5% | 5% | 5% | |||
Unconsolidated VIEs | Third Party Joint Venture Partners | Maximum | ||||||
Variable Interest Entity [Line Items] | ||||||
Ownership percentage by noncontrolling owners (in percentage) | 11% | 11% | 11% | |||
Primary Beneficiary | ||||||
Variable Interest Entity [Line Items] | ||||||
Number of investing VIEs (in variable interest entities) | variableInterestEntity | 1 | 1 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Unconsolidated VIEs (Details) $ in Thousands | 3 Months Ended | |
Jun. 30, 2022 USD ($) unconsolidatedVariableInterestEntity | Dec. 31, 2021 USD ($) | |
Variable Interest Entity [Line Items] | ||
Investments in unconsolidated ventures ($4,406 and $4,406 at fair value, respectively) | $ 4,406 | $ 20,591 |
Unconsolidated VIEs | ||
Variable Interest Entity [Line Items] | ||
Number of unconsolidated variable interest entities 's sold | unconsolidatedVariableInterestEntity | 1 | |
Unconsolidated VIEs | Investments in unconsolidated ventures | ||
Variable Interest Entity [Line Items] | ||
Investments in unconsolidated ventures ($4,406 and $4,406 at fair value, respectively) | 16,200 | |
Maximum exposure to loss | $ 16,200 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Operating Real Estate Estimated Useful Lives (Details) | 6 Months Ended |
Jun. 30, 2022 | |
Building (fee interest) | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful life (in years) | 28 years |
Building (fee interest) | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful life (in years) | 40 years |
Land improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful life (in years) | 1 year |
Land improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful life (in years) | 15 years |
Furniture, fixtures and equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful life (in years) | 2 years |
Furniture, fixtures and equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful life (in years) | 8 years |
Loans Held for Investment, ne_2
Loans Held for Investment, net - Summary of Loans Held for Investment, Net (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2022 | Dec. 31, 2021 | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | |
Financing Receivable, Impaired [Line Items] | ||||||
Principal amount, financial assets | $ 3,850,052 | $ 3,500,658 | ||||
Loan carrying value | 3,833,523 | 3,485,607 | ||||
CECL reserve | (44,378) | (36,598) | $ (34,004) | $ (42,152) | $ (40,791) | $ (37,191) |
Loans held for investment, net | 3,789,145 | 3,449,009 | ||||
Variable rate | ||||||
Financing Receivable, Impaired [Line Items] | ||||||
Principal amount, financial assets | 3,758,000 | 3,395,022 | ||||
Fixed rate | ||||||
Financing Receivable, Impaired [Line Items] | ||||||
Principal amount, financial assets | 92,052 | 105,636 | ||||
Commercial mortgage | ||||||
Financing Receivable, Impaired [Line Items] | ||||||
Principal amount, financial assets | 3,850,052 | 3,500,658 | ||||
Loan carrying value | 3,833,523 | 3,485,607 | ||||
Loans and preferred equity held for investment | Variable rate | ||||||
Financing Receivable, Impaired [Line Items] | ||||||
Loan carrying value | 3,741,635 | 3,380,102 | ||||
Loans and preferred equity held for investment | Fixed rate | ||||||
Financing Receivable, Impaired [Line Items] | ||||||
Loan carrying value | 91,888 | 105,505 | ||||
Loans and preferred equity held for investment | Commercial mortgage | ||||||
Financing Receivable, Impaired [Line Items] | ||||||
Loan carrying value | 3,833,523 | 3,485,607 | ||||
Senior loans | Variable rate | ||||||
Financing Receivable, Impaired [Line Items] | ||||||
Principal amount, financial assets | $ 2,092,924 | $ 1,576,439 | ||||
Weighted average coupon (in percentage) | 5.50% | 4.60% | ||||
Weighted average maturity in years | 3 years 10 months 24 days | 3 years 8 months 12 days | ||||
Senior loans | Loans and preferred equity held for investment | Variable rate | ||||||
Financing Receivable, Impaired [Line Items] | ||||||
Loan carrying value | $ 2,080,438 | $ 1,564,940 | ||||
Securitized loans | Variable rate | ||||||
Financing Receivable, Impaired [Line Items] | ||||||
Principal amount, financial assets | $ 1,653,076 | $ 1,806,583 | ||||
Weighted average coupon (in percentage) | 5.20% | 4.20% | ||||
Weighted average maturity in years | 3 years 1 month 6 days | 3 years 6 months | ||||
Securitized loans | Loans and preferred equity held for investment | Variable rate | ||||||
Financing Receivable, Impaired [Line Items] | ||||||
Loan carrying value | $ 1,649,077 | $ 1,803,042 | ||||
Mezzanine loans | Variable rate | ||||||
Financing Receivable, Impaired [Line Items] | ||||||
Principal amount, financial assets | $ 12,000 | $ 12,000 | ||||
Weighted average coupon (in percentage) | 12.80% | 11.50% | ||||
Weighted average maturity in years | 0 years | 8 months 12 days | ||||
Mezzanine loans | Fixed rate | ||||||
Financing Receivable, Impaired [Line Items] | ||||||
Principal amount, financial assets | $ 92,052 | $ 105,636 | ||||
Weighted average coupon (in percentage) | 12.20% | 12.40% | ||||
Weighted average maturity in years | 3 years | 3 years | ||||
Mezzanine loans | Loans and preferred equity held for investment | Variable rate | ||||||
Financing Receivable, Impaired [Line Items] | ||||||
Loan carrying value | $ 12,120 | $ 12,120 | ||||
Mezzanine loans | Loans and preferred equity held for investment | Fixed rate | ||||||
Financing Receivable, Impaired [Line Items] | ||||||
Loan carrying value | $ 91,888 | $ 105,505 |
Loans Held for Investment, ne_3
Loans Held for Investment, net - Narrative (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2022 USD ($) | Mar. 31, 2022 USD ($) | Jun. 30, 2021 USD ($) | Mar. 31, 2021 USD ($) | Jun. 30, 2022 USD ($) investment | Jun. 30, 2021 USD ($) investment | Dec. 31, 2021 USD ($) loan | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Maturity period of debt instruments depending upon the asset type (in years) | 3 years 4 months 24 days | 3 years 7 months 6 days | |||||
Interest receivable | $ 12,100 | $ 12,100 | $ 9,500 | ||||
Loans held for investment, net | 3,789,145 | 3,789,145 | 3,449,009 | ||||
Interest income | 53,083 | $ 37,921 | 97,654 | $ 72,295 | |||
Loan carrying value | $ 3,833,523 | $ 3,833,523 | $ 3,485,607 | ||||
Real estate debt investments with contractual payments past due (in loans) | loan | 0 | ||||||
Number of CRE debt investments contributed to more than 10% of interest income (in investments) | investment | 0 | 0 | |||||
Percent of interest income contributed by investment | 10% | 10% | |||||
Average risk rating | 3.1 | 3.1 | 3.1 | ||||
Unfunded commitments | $ (300) | $ 500 | $ (200) | $ (400) | |||
Senior loans | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Loan carrying value | 3,729,515 | $ 3,729,515 | $ 3,367,982 | ||||
Senior loans | Collateralized Senior Loan Repaid In 2022 | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Loan carrying value | 1,300 | ||||||
Proceeds from sale of receivables | $ 36,500 | ||||||
PD/LGD model | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Unfunded commitments | 300 | ||||||
Allowance for lending commitments | 700 | 700 | 400 | ||||
Commercial mortgage | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Loan carrying value | 3,833,523 | 3,833,523 | 3,485,607 | ||||
Future funding commitments | $ 312,900 | $ 312,900 | $ 264,900 |
Loans Held for Investment, ne_4
Loans Held for Investment, net - Activity in Loans Held for Investment, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Movement in Mortgage Loans on Real Estate [Roll Forward] | |||||
Balance at January 1, 2022 | $ 3,449,009 | $ 3,449,009 | |||
Acquisitions/originations/additional funding | 815,466 | ||||
Loan maturities/principal repayments | (472,470) | ||||
Discount accretion/premium amortization | 6,912 | ||||
Capitalized interest | (1,992) | ||||
(Increase) decrease of CECL reserve | (9,031) | ||||
Charge-off | 1,251 | ||||
Balance at June 30, 2022 | $ 3,789,145 | 3,789,145 | |||
Unfunded commitments | $ (300) | $ 500 | $ (200) | $ (400) | |
PD/LGD model | |||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Movement in Mortgage Loans on Real Estate [Roll Forward] | |||||
Unfunded commitments | $ 300 |
Loans Held for Investment, ne_5
Loans Held for Investment, net - Nonaccrual and Past Due Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Financing Receivable, Past Due [Line Items] | ||
Loan carrying value | $ 3,833,523 | $ 3,485,607 |
Commercial mortgage | ||
Financing Receivable, Past Due [Line Items] | ||
Loan carrying value | 3,833,523 | 3,485,607 |
Commercial mortgage | Current or Less Than 30 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loan carrying value | 3,821,403 | 3,485,607 |
Commercial mortgage | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loan carrying value | 0 | 0 |
Commercial mortgage | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loan carrying value | 0 | 0 |
Commercial mortgage | 90 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loan carrying value | $ 12,120 | $ 0 |
Loans Held for Investment, ne_6
Loans Held for Investment, net - Changes in Allowance for Loan Losses (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2022 USD ($) | Mar. 31, 2022 USD ($) loan | Dec. 31, 2021 USD ($) | Jun. 30, 2021 USD ($) | Mar. 31, 2021 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | |
Allowance for Loan and Lease Losses [Roll Forward] | |||||||
Allowance for loan losses at beginning of period | $ 34,004 | $ 36,598 | $ 40,791 | $ 37,191 | $ 36,598 | $ 37,191 | |
Increase (decrease) of CECL reserve | 10,374 | (1,343) | 1,361 | 3,600 | |||
Charge-off of CECL reserve | (1,251) | ||||||
Allowance for loan losses at end of period | 44,378 | 34,004 | $ 36,598 | 42,152 | 40,791 | 44,378 | 42,152 |
Unfunded commitments | (300) | 500 | (200) | $ (400) | |||
Loan carrying value | 3,833,523 | 3,485,607 | 3,833,523 | ||||
Increase (decrease) of current expected credit loss reserve | 10,143 | $ 1,200 | 9,277 | $ 4,425 | |||
Senior loans | |||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||
Loan carrying value | $ 3,729,515 | 3,367,982 | 3,729,515 | ||||
Senior loans | Collateralized Senior Loan Repaid In 2022 | |||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||
Proceeds from sale of receivables | $ 36,500 | ||||||
Senior loan (in loans) | loan | 1 | ||||||
Loan carrying value | $ 1,300 | ||||||
Increase (decrease) of current expected credit loss reserve | $ 1,300 | ||||||
PD/LGD model | |||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||
Unfunded commitments | $ 300 |
Loans Held for Investment, ne_7
Loans Held for Investment, net - Summary of Loans and Preferred Equity Held for Investment by Year of Origination and Credit Quality Risk Ranking (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current fiscal year | $ 779,831 | $ 1,636,157 |
One year before current fiscal year | 1,588,359 | 181,462 |
Two years before current fiscal year | 112,169 | 1,050,719 |
Three years before current fiscal year | 731,636 | 571,113 |
Four years before current fiscal year and earlier | 621,528 | |
Four years before current fiscal year | 46,156 | |
Total | 3,833,523 | 3,485,607 |
Senior loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current fiscal year | 762,666 | 1,636,157 |
One year before current fiscal year | 1,588,359 | 181,462 |
Two years before current fiscal year | 112,169 | 949,703 |
Three years before current fiscal year | 661,387 | 566,624 |
Four years before current fiscal year and earlier | 604,934 | |
Four years before current fiscal year | 34,036 | |
Total | 3,729,515 | 3,367,982 |
Senior loans | Risk Ranking 2 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current fiscal year | 0 | 242,850 |
One year before current fiscal year | 200,113 | 109,103 |
Two years before current fiscal year | 58,880 | 70,811 |
Three years before current fiscal year | 25,855 | 0 |
Four years before current fiscal year and earlier | 0 | |
Four years before current fiscal year | 0 | |
Total | 284,848 | 422,764 |
Senior loans | Risk Ranking 3 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current fiscal year | 762,666 | 1,393,307 |
One year before current fiscal year | 1,388,246 | 72,359 |
Two years before current fiscal year | 53,289 | 443,162 |
Three years before current fiscal year | 283,483 | 262,147 |
Four years before current fiscal year and earlier | 300,244 | |
Four years before current fiscal year | 34,036 | |
Total | 2,787,928 | 2,205,011 |
Senior loans | Risk Ranking 4 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current fiscal year | 0 | 0 |
One year before current fiscal year | 0 | 0 |
Two years before current fiscal year | 0 | 396,395 |
Three years before current fiscal year | 352,049 | 304,477 |
Four years before current fiscal year and earlier | 304,690 | |
Four years before current fiscal year | 0 | |
Total | 656,739 | 700,872 |
Senior loans | Risk Ranking 5 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current fiscal year | 0 | |
One year before current fiscal year | 0 | |
Two years before current fiscal year | 39,335 | |
Three years before current fiscal year | 0 | |
Four years before current fiscal year | 0 | |
Total | 39,335 | |
Mezzanine loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current fiscal year | 17,165 | 0 |
One year before current fiscal year | 0 | 0 |
Two years before current fiscal year | 0 | 101,016 |
Three years before current fiscal year | 70,249 | 4,489 |
Four years before current fiscal year and earlier | 16,594 | |
Four years before current fiscal year | 12,120 | |
Total | 104,008 | 117,625 |
Mezzanine loans | Risk Ranking 3 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current fiscal year | 17,165 | 0 |
One year before current fiscal year | 0 | 0 |
Two years before current fiscal year | 0 | 38,796 |
Three years before current fiscal year | 41,459 | 4,489 |
Four years before current fiscal year and earlier | 4,474 | |
Four years before current fiscal year | 0 | |
Total | 63,098 | 43,285 |
Mezzanine loans | Risk Ranking 4 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current fiscal year | 0 | 0 |
One year before current fiscal year | 0 | 0 |
Two years before current fiscal year | 0 | 62,220 |
Three years before current fiscal year | 28,790 | 0 |
Four years before current fiscal year and earlier | 0 | |
Four years before current fiscal year | 12,120 | |
Total | 28,790 | $ 74,340 |
Mezzanine loans | Risk Ranking 5 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current fiscal year | 0 | |
One year before current fiscal year | 0 | |
Two years before current fiscal year | 0 | |
Three years before current fiscal year | 0 | |
Four years before current fiscal year and earlier | 12,120 | |
Total | $ 12,120 |
Real Estate Securities - Narrat
Real Estate Securities - Narrative (Details) $ in Millions | Jun. 30, 2022 USD ($) loan securitizationTrust | Dec. 31, 2021 USD ($) |
Debt Securities, Available-for-sale [Line Items] | ||
Number of securitization trusts held (in securitization trusts) | securitizationTrust | 1 | |
Primary beneficiary | ||
Debt Securities, Available-for-sale [Line Items] | ||
Mortgage loans held in trust, unpaid principal balance | $ 767.8 | $ 783.8 |
Mortgage obligations held in trust, unpaid principal balance | $ 665.2 | 681.2 |
Number of underlying mortgage loans (in loans) | loan | 61 | |
Weighted average coupon (in percentage) | 4.90% | |
Weighted average loan to value ratio (in percentage) | 60.20% | |
Difference between held and issued mortgage loans in securitization trusts | $ 36.2 | $ 36.2 |
Real Estate Securities - Assets
Real Estate Securities - Assets and Liabilities Related to Securitized Trust (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Assets | ||
Mortgage loans held in securitization trusts, at fair value | $ 718,335 | $ 813,310 |
Receivables, net | 52,582 | 54,499 |
Total assets | 5,840,092 | 5,638,369 |
Liabilities | ||
Mortgage obligations issued by securitization trusts, at fair value | 682,181 | 777,156 |
Accrued and other liabilities | 86,493 | 99,814 |
Total liabilities | 4,386,743 | 4,147,054 |
Primary beneficiary, securitization trust | ||
Assets | ||
Mortgage loans held in securitization trusts, at fair value | 718,335 | 813,310 |
Receivables, net | 3,214 | 3,325 |
Total assets | 721,549 | 816,635 |
Liabilities | ||
Mortgage obligations issued by securitization trusts, at fair value | 682,181 | 777,156 |
Accrued and other liabilities | 2,930 | 3,032 |
Total liabilities | $ 685,111 | $ 780,188 |
Real Estate Securities - Activi
Real Estate Securities - Activity Reported in Statement of Operations Related to Securitized Trust (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Variable Interest Entity [Line Items] | ||||
Interest income on mortgage loans held in securitization trusts | $ 9,721 | $ 11,390 | $ 19,095 | $ 31,079 |
Interest expense on mortgage obligations issued by securitization trusts | (8,586) | (10,111) | (17,074) | (27,447) |
Unrealized gain on mortgage loans and obligations held in securitization trusts, net | 0 | 19,516 | 0 | 28,154 |
Realized loss on mortgage loans and obligations held in securitization trusts, net | 0 | (19,516) | 0 | (19,516) |
Net income attributable to BrightSpire Capital, Inc. common stockholders | 33,600 | (19,720) | 61,213 | (112,034) |
Primary beneficiary | ||||
Variable Interest Entity [Line Items] | ||||
Interest income on mortgage loans held in securitization trusts | 9,721 | 11,390 | 19,095 | 31,079 |
Interest expense on mortgage obligations issued by securitization trusts | (8,586) | (10,111) | (17,074) | (27,447) |
Net interest income | 1,135 | 1,279 | 2,021 | 3,632 |
Operating expense | (245) | (161) | (342) | (927) |
Unrealized gain on mortgage loans and obligations held in securitization trusts, net | 0 | 19,516 | 0 | 28,154 |
Realized loss on mortgage loans and obligations held in securitization trusts, net | 0 | (19,516) | 0 | (19,516) |
Net income attributable to BrightSpire Capital, Inc. common stockholders | $ 890 | $ 1,118 | $ 1,679 | $ 11,343 |
Real Estate, net and Real Est_3
Real Estate, net and Real Estate Held for Sale - Real Estate Portfolios (Details) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2022 USD ($) property | Jun. 30, 2021 property | Dec. 31, 2021 USD ($) property | |
Real Estate [Line Items] | |||
Net lease portfolio, net | $ 742,079 | $ 783,211 | |
Number of foreclosed properties (in properties) | property | 1 | ||
Foreclosed properties | $ 33,500 | ||
Revenue | Property Concentration Risk | |||
Real Estate [Line Items] | |||
Concentration risk, number of properties (in properties) | property | 0 | 0 | |
Net lease portfolio, net | |||
Real Estate [Line Items] | |||
Land and improvements | $ 128,426 | 134,453 | |
Buildings, building leaseholds, and improvements | 504,504 | 530,815 | |
Tenant improvements | 17,168 | 17,944 | |
Construction-in-progress | 660 | 660 | |
Subtotal | 650,758 | 683,872 | |
Less: Accumulated depreciation | (77,467) | (70,861) | |
Net lease portfolio, net | 573,291 | 613,011 | |
Other portfolio, net | |||
Real Estate [Line Items] | |||
Land and improvements | 29,583 | 29,582 | |
Buildings, building leaseholds, and improvements | 152,186 | 152,180 | |
Tenant improvements | 17,731 | 17,303 | |
Furniture, fixtures and equipment | 135 | 135 | |
Construction-in-progress | 1,651 | 460 | |
Subtotal | 201,286 | 199,660 | |
Less: Accumulated depreciation | (32,498) | (29,460) | |
Net lease portfolio, net | $ 168,788 | $ 170,200 |
Real Estate, net and Real Est_4
Real Estate, net and Real Estate Held for Sale - Depreciation Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Real Estate [Abstract] | ||||
Depreciation expense on real estate | $ 6.4 | $ 7 | $ 12.5 | $ 13.9 |
Real Estate, net and Real Est_5
Real Estate, net and Real Estate Held for Sale - Property Operating Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Real Estate [Abstract] | ||||
Minimum lease revenue | $ 19,334 | $ 20,240 | $ 39,068 | $ 42,649 |
Variable lease revenue | 2,388 | 2,449 | 5,214 | 5,229 |
Total lease revenues | 21,722 | 22,689 | 44,282 | 47,878 |
Hotel operating income | 0 | 1,902 | 1,566 | 2,603 |
Property operating income | 21,722 | 24,591 | 45,848 | 50,481 |
Amortization of above/below market lease values, net | (103) | (26) | ||
Amortization of above-market values | $ 100 | $ 200 | $ 0 | $ 0 |
Real Estate, net and Real Est_6
Real Estate, net and Real Estate Held for Sale - Minimum Future Rents (Details) $ in Thousands | Jun. 30, 2022 USD ($) |
Lessor, Operating Lease, Payments, Fiscal Year Maturity [Abstract] | |
Remainder of 2022 | $ 37,034 |
2023 | 70,197 |
2024 | 65,515 |
2025 | 58,966 |
2026 | 52,100 |
2027 and thereafter | 361,832 |
Total | $ 645,644 |
Real Estate, net and Real Est_7
Real Estate, net and Real Estate Held for Sale - Commitments and Contractual Obligations (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Real Estate [Abstract] | ||||
Ground rent expense | $ 0.8 | $ 0.8 | $ 1.5 | $ 1.5 |
Real Estate, net and Real Est_8
Real Estate, net and Real Estate Held for Sale - Summary of Assets And Liabilities Held for Sale (Details) $ in Millions | Jun. 30, 2022 property | Dec. 31, 2021 USD ($) portfolio property |
Real Estate [Line Items] | ||
Number of net lease properties held-for-sale (in properties) | property | 0 | 1 |
Real estate, net | $ 44.2 | |
Deferred leasing costs and intangible assets, net | $ 0.1 | |
Hotel | ||
Real Estate [Line Items] | ||
Number of net lease portfolio held-for-sale (in properties) | portfolio | 1 |
Real Estate, net and Real Est_9
Real Estate, net and Real Estate Held for Sale - Real Estate Sales (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 USD ($) property | Jun. 30, 2021 USD ($) | |
Real Estate [Line Items] | ||
Gain (loss) on sale of properties | $ 10,632 | $ 11,911 |
Net Leased and Other Real Estate | ||
Real Estate [Line Items] | ||
Number of real estate properties sold (in properties) | property | 1 | |
Proceeds from sale of real estate | $ 19,600 | |
Gain (loss) on sale of properties | $ 7,600 | |
Hotel | ||
Real Estate [Line Items] | ||
Number of real estate properties sold (in properties) | property | 1 | |
Proceeds from sale of real estate | $ 36,000 | |
Gain (loss) on sale of properties | $ 2,900 | |
Industrial | ||
Real Estate [Line Items] | ||
Proceeds from sale of real estate | 335,000 | |
Gain (loss) on sale of properties | $ 11,800 |
Deferred Leasing Costs and Ot_3
Deferred Leasing Costs and Other Intangibles - Schedule of Deferred Leasing Costs and Intangibles (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Deferred leasing costs | ||
Carrying Amount | $ 28,207 | $ 29,863 |
Accumulated Amortization | (14,371) | (14,701) |
Total | 13,836 | 15,162 |
Deferred Leasing Costs and Intangible Assets | ||
Carrying Amount | 112,003 | 121,903 |
Accumulated Amortization | (53,650) | (56,922) |
Net Carrying Amount | 58,353 | 64,981 |
Intangible Liabilities - Below-market lease values | ||
Carrying Amount | 16,074 | 16,166 |
Accumulated Amortization | (10,542) | (9,942) |
Net Carrying Amount | 5,532 | 6,224 |
In-place lease values | ||
Deferred Leasing Costs and Intangible Assets | ||
Carrying Amount | 75,437 | 81,869 |
Accumulated Amortization | (32,834) | (34,555) |
Total | 42,603 | 47,314 |
Above-market lease values | ||
Deferred Leasing Costs and Intangible Assets | ||
Carrying Amount | 8,359 | 10,171 |
Accumulated Amortization | (6,445) | (7,666) |
Total | $ 1,914 | $ 2,505 |
Deferred Leasing Costs and Ot_4
Deferred Leasing Costs and Other Intangibles - Summary of the Amortization of Deferred Leasing Costs and Intangibles (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Deferred leasing costs | $ 748 | $ 935 | $ 1,554 | $ 1,556 |
Below-market lease values | 346 | 470 | 677 | 692 |
Net increase (decrease) to property operating income | 60 | 208 | 103 | 26 |
Amortization expense | 2,285 | 2,926 | 4,692 | 5,355 |
Above-market lease values | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of above-market values | (286) | (262) | (574) | (666) |
In-place lease values | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of above-market values | (1,537) | (1,862) | (3,138) | (3,627) |
Other intangibles | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of above-market values | $ 0 | $ (129) | $ 0 | $ (172) |
Deferred Leasing Costs and Ot_5
Deferred Leasing Costs and Other Intangibles - Schedule of Amortization of Deferred Leasing Costs, Intangible Assets and Intangible Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Below-market lease values | ||
2022 | $ 692 | |
2023 | 1,379 | |
2024 | 1,379 | |
2025 | 1,378 | |
2026 | 704 | |
2027 and thereafter | 0 | |
Net Carrying Amount | 5,532 | $ 6,224 |
Deferred leasing costs | ||
2022 | 1,485 | |
2023 | 2,516 | |
2024 | 2,209 | |
2025 | 1,804 | |
2026 | 923 | |
2027 and thereafter | 4,899 | |
Total | 13,836 | 15,162 |
Net increase (decrease) to property operating income | ||
Intangible assets (liabilities) and deferred leasing costs, amortization expense (income): | ||
2022 | 171 | |
2023 | 808 | |
2024 | 936 | |
2025 | 1,113 | |
2026 | 618 | |
2027 and thereafter | (28) | |
Total | 3,618 | |
Amortization expense | ||
Intangible assets (liabilities) and deferred leasing costs, amortization expense (income): | ||
2022 | 4,417 | |
2023 | 7,570 | |
2024 | 6,963 | |
2025 | 5,872 | |
2026 | 4,158 | |
2027 and thereafter | 27,459 | |
Total | 56,439 | |
Above-market lease values | ||
Above-market and In-place lease values | ||
2022 | (521) | |
2023 | (571) | |
2024 | (443) | |
2025 | (265) | |
2026 | (86) | |
2027 and thereafter | (28) | |
Total | (1,914) | (2,505) |
In-place lease values | ||
Above-market and In-place lease values | ||
2022 | (2,932) | |
2023 | (5,054) | |
2024 | (4,754) | |
2025 | (4,068) | |
2026 | (3,235) | |
2027 and thereafter | (22,560) | |
Total | $ (42,603) | $ (47,314) |
Restricted Cash, Other Assets_3
Restricted Cash, Other Assets and Accrued and Other Liabilities - Summary of Restricted Cash (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | Dec. 31, 2020 |
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Restricted cash | $ 91,674 | $ 86,841 | $ 81,837 | $ 65,213 |
Borrower escrow deposits | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Restricted cash | 75,414 | 73,344 | ||
Capital expenditure reserves | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Restricted cash | 9,829 | 8,921 | ||
Real estate escrow reserves | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Restricted cash | 3,628 | 2,025 | ||
Working capital and other reserves | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Restricted cash | 2,003 | 2,310 | ||
Tenant lockboxes | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Restricted cash | $ 800 | $ 241 |
Restricted Cash, Other Assets_4
Restricted Cash, Other Assets and Accrued and Other Liabilities - Summary of Deferred Costs and Other Assets, Net (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Other assets: | ||
Right-of-use lease asset | $ 26,670 | $ 24,970 |
Tax receivable and deferred tax assets | 22,338 | 26,194 |
Deferred financing costs, net - credit facilities | 7,373 | 2,113 |
Prepaid expenses | 4,407 | 5,069 |
Investments in unconsolidated ventures ($4,406 and $4,406 at fair value, respectively) | 4,406 | 20,591 |
Derivative asset | 3,202 | 1,373 |
Other | 1,786 | 2,141 |
Total | $ 70,182 | $ 82,451 |
Right-of-use lease asset [Extensible List] | Total | Total |
Other assets, at fair value | $ 4,406 | $ 4,406 |
Restricted Cash, Other Assets_5
Restricted Cash, Other Assets and Accrued and Other Liabilities - Summary of Other Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Accrued and other liabilities: | ||
Operating lease liability | $ 27,153 | $ 25,205 |
Current and deferred tax liability | 27,080 | 34,612 |
Accounts payable, accrued expenses and other liabilities | 15,974 | 20,168 |
Interest payable | 8,531 | 11,076 |
Prepaid rent and unearned revenue | 6,462 | 7,669 |
Unfunded CECL loan allowance | 678 | 432 |
Tenant security deposits | 409 | 424 |
Other | 206 | 228 |
Accrued and other liabilities | $ 86,493 | $ 99,814 |
Operating lease liability [Extensible List] | Accrued and other liabilities | Accrued and other liabilities |
Restricted Cash, Other Assets_6
Restricted Cash, Other Assets and Accrued and Other Liabilities - Investments under Fair Value Option (Details) | Jun. 30, 2022 |
Minimum | |
Restricted Cash and Cash Equivalents Items [Line Items] | |
Investments fair value option, ownership percentage (in percentage) | 1% |
Maximum | |
Restricted Cash and Cash Equivalents Items [Line Items] | |
Investments fair value option, ownership percentage (in percentage) | 15.60% |
Restricted Cash, Other Assets_7
Restricted Cash, Other Assets and Accrued and Other Liabilities - Investments in Unconsolidated Ventures (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2022 | Jun. 30, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||
Sales price | $ 38,100 | ||
Realized gain | $ 21,900 | $ 21,900 | $ 0 |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Details) kr in Billions | 1 Months Ended | 6 Months Ended | |||
Jul. 31, 2022 Extension_Option | Jun. 30, 2022 USD ($) extension property | Jun. 30, 2022 NOK (kr) property | Dec. 31, 2021 USD ($) | Jun. 17, 2021 | |
Debt Instrument [Line Items] | |||||
Principal amount | $ 3,518,673,000 | $ 3,176,361,000 | |||
Carrying value | 3,511,330,000 | 3,166,604,000 | |||
Mortgage and other notes payable, net | 658,857,000 | 760,583,000 | |||
Net lease 2 | |||||
Debt Instrument [Line Items] | |||||
Mortgage and other notes payable, net | 161,900,000 | kr 1.6 | |||
Securitization bonds payable, net | |||||
Debt Instrument [Line Items] | |||||
Principal amount | 1,372,054,000 | 1,510,423,000 | |||
Carrying value | $ 1,364,906,000 | 1,500,899,000 | |||
Securitization bonds payable, net | Minimum | |||||
Debt Instrument [Line Items] | |||||
Initial debt term (in years) | 2 years | ||||
Securitization bonds payable, net | Maximum | |||||
Debt Instrument [Line Items] | |||||
Initial debt term (in years) | 3 years | ||||
Mortgage and other notes payable, net | |||||
Debt Instrument [Line Items] | |||||
Principal amount | $ 659,052,000 | 760,816,000 | |||
Carrying value | $ 658,857,000 | 760,583,000 | |||
Mortgage and other notes payable, net | Net lease 6 | Collateralized by a property in Company's Core Portfolio | |||||
Debt Instrument [Line Items] | |||||
Contractual interest rate | 4.45% | 4.45% | |||
Principal amount | $ 22,840,000 | 23,117,000 | |||
Carrying value | 22,840,000 | 23,117,000 | |||
Mortgage and other notes payable, net | Net lease 6 | Collateralized by a property in Legacy, Non-Strategic Portfolio | |||||
Debt Instrument [Line Items] | |||||
Principal amount | 674,000 | 908,000 | |||
Carrying value | $ 661,000 | 889,000 | |||
Mortgage and other notes payable, net | Net lease 6 | Collateralized by a property in Legacy, Non-Strategic Portfolio | LIBOR | |||||
Debt Instrument [Line Items] | |||||
Interest rate margin (in percentage) | 2.15% | ||||
Mortgage and other notes payable, net | Net lease 5 | Collateralized by a property in Company's Core Portfolio | |||||
Debt Instrument [Line Items] | |||||
Contractual interest rate | 4.08% | 4.08% | |||
Principal amount | $ 30,376,000 | 30,639,000 | |||
Carrying value | $ 30,199,000 | 30,442,000 | |||
Mortgage and other notes payable, net | Net lease 5 | Collateralized by a property in Legacy, Non-Strategic Portfolio | |||||
Debt Instrument [Line Items] | |||||
Contractual interest rate | 4.45% | 4.45% | |||
Principal amount | $ 3,247,000 | 3,282,000 | |||
Carrying value | $ 3,188,000 | 3,216,000 | |||
Mortgage and other notes payable, net | Net lease 4 | Collateralized by a property in Legacy, Non-Strategic Portfolio | |||||
Debt Instrument [Line Items] | |||||
Contractual interest rate | 4.45% | 4.45% | |||
Principal amount | $ 7,005,000 | 7,081,000 | |||
Carrying value | $ 6,877,000 | 6,939,000 | |||
Mortgage and other notes payable, net | Net lease 3 | Collateralized by a property in Company's Core Portfolio | |||||
Debt Instrument [Line Items] | |||||
Contractual interest rate | 4.77% | 4.77% | |||
Principal amount | $ 200,000,000 | 200,000,000 | |||
Carrying value | $ 198,733,000 | 198,689,000 | |||
Mortgage and other notes payable, net | Net lease 3 | Collateralized by a property in Legacy, Non-Strategic Portfolio | |||||
Debt Instrument [Line Items] | |||||
Contractual interest rate | 6% | 6% | |||
Principal amount | $ 0 | 11,867,000 | |||
Carrying value | $ 0 | 11,807,000 | |||
Mortgage and other notes payable, net | Net lease 1 | Collateralized by a property in Legacy, Non-Strategic Portfolio | |||||
Debt Instrument [Line Items] | |||||
Contractual interest rate | 4.45% | 4.45% | |||
Principal amount | $ 17,631,000 | 17,823,000 | |||
Carrying value | $ 17,309,000 | 17,465,000 | |||
Mortgage and other notes payable, net | Net lease 1 | Collateralized by properties in Legacy, Non-Strategic Portfolio | |||||
Debt Instrument [Line Items] | |||||
Contractual interest rate | 4.38% | 4.38% | |||
Principal amount | $ 11,648,000 | 11,769,000 | |||
Carrying value | $ 11,211,000 | 11,332,000 | |||
Number of properties (in properties) | property | 3 | 3 | |||
Mortgage and other notes payable, net | Net lease 2 | Collateralized by a property in Company's Core Portfolio | |||||
Debt Instrument [Line Items] | |||||
Contractual interest rate | 3.91% | 3.91% | |||
Principal amount | $ 161,856,000 | 181,504,000 | |||
Carrying value | $ 164,151,000 | 184,078,000 | |||
Mortgage and other notes payable, net | Other real estate 1 | Collateralized by a property in Legacy, Non-Strategic Portfolio | |||||
Debt Instrument [Line Items] | |||||
Contractual interest rate | 4.47% | 4.47% | |||
Principal amount | $ 104,306,000 | 105,090,000 | |||
Carrying value | $ 104,589,000 | 105,452,000 | |||
Mortgage and other notes payable, net | Other real estate 3 | Collateralized by a property in Legacy, Non-Strategic Portfolio | |||||
Debt Instrument [Line Items] | |||||
Contractual interest rate | 4.30% | 4.30% | |||
Principal amount | $ 71,618,000 | 72,359,000 | |||
Carrying value | 71,248,000 | 71,922,000 | |||
Mortgage and other notes payable, net | Other real estate 6 | Collateralized by a property in Legacy, Non-Strategic Portfolio | |||||
Debt Instrument [Line Items] | |||||
Principal amount | 0 | 30,000,000 | |||
Carrying value | $ 0 | 29,859,000 | |||
Mortgage and other notes payable, net | Other real estate 6 | Collateralized by a property in Legacy, Non-Strategic Portfolio | LIBOR | |||||
Debt Instrument [Line Items] | |||||
Interest rate margin (in percentage) | 2.95% | ||||
Mortgage and other notes payable, net | Loan 9 | |||||
Debt Instrument [Line Items] | |||||
Principal amount | $ 27,851,000 | 65,377,000 | |||
Carrying value | $ 27,851,000 | 65,376,000 | |||
Debt term extension available (in years) | 1 year | ||||
Mortgage and other notes payable, net | Loan 9 | LIBOR | |||||
Debt Instrument [Line Items] | |||||
Interest rate margin (in percentage) | 3% | ||||
Mortgage and other notes payable, net | Loan 9 | Collateralized by a property in Legacy, Non-Strategic Portfolio | |||||
Debt Instrument [Line Items] | |||||
Number of optional extensions to initial maturity date | extension | 1 | ||||
Mortgage and other notes payable, net | Net lease 1, periodic payment of principal and interest | |||||
Debt Instrument [Line Items] | |||||
Number of properties (in properties) | property | 2 | 2 | |||
Mortgage and other notes payable, net | Net lease 1, periodic payment of interest | |||||
Debt Instrument [Line Items] | |||||
Number of properties (in properties) | property | 1 | 1 | |||
Credit facilities | |||||
Debt Instrument [Line Items] | |||||
Principal amount | $ 1,487,567,000 | 905,122,000 | |||
Carrying value | $ 1,487,567,000 | 905,122,000 | |||
Credit facilities | Minimum | |||||
Debt Instrument [Line Items] | |||||
Initial debt term (in years) | 2 years | ||||
Credit facilities | Maximum | |||||
Debt Instrument [Line Items] | |||||
Initial debt term (in years) | 5 years | ||||
Credit facilities | Bank credit facility | |||||
Debt Instrument [Line Items] | |||||
Principal amount | $ 0 | 0 | |||
Carrying value | $ 0 | 0 | |||
Credit facilities | Bank credit facility | Secured Overnight Financing Rate (SOFR) | |||||
Debt Instrument [Line Items] | |||||
Interest rate margin (in percentage) | 2.25% | ||||
Credit facilities | Master repurchase facilities | |||||
Debt Instrument [Line Items] | |||||
Capacity | $ 2,250,000,000 | ||||
Principal amount | 1,487,567,000 | 905,122,000 | |||
Carrying value | $ 1,487,567,000 | 905,122,000 | |||
Percent of recourse of the financed amount | 25% | 25% | |||
Credit facilities | Master repurchase facilities | LIBOR and SOFR | Minimum | |||||
Debt Instrument [Line Items] | |||||
Interest rate margin (in percentage) | 1.50% | ||||
Credit facilities | Master repurchase facilities | LIBOR and SOFR | Maximum | |||||
Debt Instrument [Line Items] | |||||
Interest rate margin (in percentage) | 2.70% | ||||
Credit facilities | Bank credit facility | Bank credit facility | |||||
Debt Instrument [Line Items] | |||||
Principal amount | $ 0 | 0 | |||
Carrying value | 0 | 0 | |||
Credit facilities | Bank 1 facility 3 | Master repurchase facilities | |||||
Debt Instrument [Line Items] | |||||
Capacity | 400,000,000 | ||||
Principal amount | 250,162,000 | 109,915,000 | |||
Carrying value | $ 250,162,000 | 109,915,000 | |||
Credit facilities | Bank 1 facility 3 | Master repurchase facilities | Subsequent event | |||||
Debt Instrument [Line Items] | |||||
Number of optional extensions to initial maturity date | Extension_Option | 3 | ||||
Debt term extension available (in years) | 1 year | ||||
Credit facilities | Bank 1 facility 3 | Master repurchase facilities | LIBOR and SOFR | |||||
Debt Instrument [Line Items] | |||||
Interest rate margin (in percentage) | 1.82% | ||||
Credit facilities | Bank 3 facility 3 | Master repurchase facilities | |||||
Debt Instrument [Line Items] | |||||
Capacity | $ 600,000,000 | ||||
Principal amount | 396,202,000 | 157,409,000 | |||
Carrying value | $ 396,202,000 | 157,409,000 | |||
Credit facilities | Bank 3 facility 3 | Master repurchase facilities | Subsequent event | |||||
Debt Instrument [Line Items] | |||||
Number of optional extensions to initial maturity date | Extension_Option | 2 | ||||
Debt term extension available (in years) | 1 year | ||||
Credit facilities | Bank 3 facility 3 | Master repurchase facilities | LIBOR and SOFR | |||||
Debt Instrument [Line Items] | |||||
Interest rate margin (in percentage) | 1.95% | ||||
Credit facilities | Bank 7 facility 1 | Master repurchase facilities | |||||
Debt Instrument [Line Items] | |||||
Capacity | $ 600,000,000 | ||||
Principal amount | 415,795,000 | 358,181,000 | |||
Carrying value | $ 415,795,000 | 358,181,000 | |||
Debt term extension available (in years) | 1 year | ||||
Credit facilities | Bank 7 facility 1 | Master repurchase facilities | LIBOR and SOFR | |||||
Debt Instrument [Line Items] | |||||
Interest rate margin (in percentage) | 1.79% | ||||
Credit facilities | Bank 8 facility 1 | Master repurchase facilities | |||||
Debt Instrument [Line Items] | |||||
Capacity | $ 250,000,000 | ||||
Principal amount | 158,504,000 | 177,519,000 | |||
Carrying value | $ 158,504,000 | 177,519,000 | |||
Number of optional extensions to initial maturity date | extension | 0 | ||||
Credit facilities | Bank 8 facility 1 | Master repurchase facilities | LIBOR and SOFR | |||||
Debt Instrument [Line Items] | |||||
Interest rate margin (in percentage) | 2.18% | ||||
Credit facilities | Bank 9 Facility 1 | Master repurchase facilities | |||||
Debt Instrument [Line Items] | |||||
Capacity | $ 400,000,000 | ||||
Principal amount | 266,904,000 | 102,098,000 | |||
Carrying value | $ 266,904,000 | 102,098,000 | |||
Number of optional extensions to initial maturity date | extension | 2 | ||||
Debt term extension available (in years) | 1 year | ||||
Credit facilities | Bank 9 Facility 1 | Master repurchase facilities | Minimum | |||||
Debt Instrument [Line Items] | |||||
Percent of recourse of the financed amount | 25% | 25% | |||
Credit facilities | Bank 9 Facility 1 | Master repurchase facilities | Maximum | |||||
Debt Instrument [Line Items] | |||||
Percent of recourse of the financed amount | 50% | 50% | |||
Credit facilities | Bank 9 Facility 1 | Master repurchase facilities | LIBOR and SOFR | |||||
Debt Instrument [Line Items] | |||||
Interest rate margin (in percentage) | 1.70% | ||||
CLNC 2019-FL1 | Investment grade notes | Secured Overnight Financing Rate (SOFR) | |||||
Debt Instrument [Line Items] | |||||
Benchmark adjustment | 0.11448% | ||||
CLNC 2019-FL1 | Securitization bonds payable, net | Investment grade notes | |||||
Debt Instrument [Line Items] | |||||
Principal amount | $ 702,054,000 | 840,423,000 | |||
Carrying value | $ 699,645,000 | 836,812,000 | |||
CLNC 2019-FL1 | Securitization bonds payable, net | Investment grade notes | Secured Overnight Financing Rate (SOFR) | |||||
Debt Instrument [Line Items] | |||||
Interest rate margin (in percentage) | 1.66% | ||||
BRSP 2021-FL 1 | Securitization bonds payable, net | Investment grade notes | |||||
Debt Instrument [Line Items] | |||||
Principal amount | $ 670,000,000 | 670,000,000 | |||
Carrying value | $ 665,261,000 | $ 664,087,000 | |||
BRSP 2021-FL 1 | Securitization bonds payable, net | Investment grade notes | LIBOR | |||||
Debt Instrument [Line Items] | |||||
Interest rate margin (in percentage) | 1.49% |
Debt - Future Minimum Principal
Debt - Future Minimum Principal Payments (Details) $ in Thousands | Jun. 30, 2022 USD ($) |
Future Scheduled Minimum Principal Payments | |
Remaining 2022 | $ 1,311 |
2023 | 557,272 |
2024 | 134,376 |
2025 | 235,750 |
2026 | 720,557 |
2027 and thereafter | 1,869,407 |
Total | 3,518,673 |
Securitization Bonds Payable, Net | |
Future Scheduled Minimum Principal Payments | |
Remaining 2022 | 0 |
2023 | 0 |
2024 | 0 |
2025 | 0 |
2026 | 0 |
2027 and thereafter | 1,372,054 |
Total | 1,372,054 |
Mortgage Notes Payable, Net | |
Future Scheduled Minimum Principal Payments | |
Remaining 2022 | 1,311 |
2023 | 2,566 |
2024 | 134,376 |
2025 | 235,750 |
2026 | 54,600 |
2027 and thereafter | 230,449 |
Total | 659,052 |
Credit Facilities | |
Future Scheduled Minimum Principal Payments | |
Remaining 2022 | 0 |
2023 | 554,706 |
2024 | 0 |
2025 | 0 |
2026 | 665,957 |
2027 and thereafter | 266,904 |
Total | $ 1,487,567 |
Debt - Narrative (Details)
Debt - Narrative (Details) | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||||||||||
Jan. 28, 2022 USD ($) term | Aug. 03, 2022 USD ($) | Aug. 02, 2022 loan | Jul. 31, 2021 USD ($) loan | Oct. 31, 2019 USD ($) | Jun. 30, 2022 USD ($) loan loanPayoff agreement | Mar. 31, 2022 USD ($) loan | Dec. 31, 2021 USD ($) | Jun. 30, 2022 USD ($) loan agreement | Jun. 30, 2021 USD ($) | Jun. 17, 2021 | Apr. 04, 2021 USD ($) | Mar. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Debt Instrument [Line Items] | ||||||||||||||
Carrying value of CRE debt investments | $ 44,378,000 | $ 34,004,000 | $ 36,598,000 | $ 44,378,000 | $ 42,152,000 | $ 40,791,000 | $ 37,191,000 | |||||||
Principal amount | 3,518,673,000 | 3,176,361,000 | 3,518,673,000 | |||||||||||
Carrying amount | $ 3,518,673,000 | $ 3,518,673,000 | ||||||||||||
Investment grade notes | CLNC 2019-FL1 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Sale of notes | $ 840,000,000 | |||||||||||||
Advance rate | 82.80% | 82.80% | ||||||||||||
Number of loans (in loans) | loan | 21 | 21 | ||||||||||||
Reinvestment period | 2 years | |||||||||||||
Number of loan investments removed (in loans) | loan | 3 | 2 | ||||||||||||
Debt repaid | $ 84,000,000 | $ 54,400,000 | ||||||||||||
Total number of loan investments | loanPayoff | 5 | |||||||||||||
Investment grade notes | BRSP 2021-FL 1 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Sale of notes | $ 670,000,000 | |||||||||||||
Advance rate | 83.75% | |||||||||||||
Number of loans (in loans) | loan | 33 | |||||||||||||
Reinvestment period | 2 years | |||||||||||||
Number of loan investments removed (in loans) | loan | 3 | 1 | ||||||||||||
Debt repaid | $ 47,900,000 | $ 11,700,000 | ||||||||||||
Investment grade notes | BRSP 2021-FL 1 | Subsequent event | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Number of loan investments removed (in loans) | loan | 1 | |||||||||||||
Debt repaid | $ 14,200,000 | |||||||||||||
Investment grade notes | LIBOR | BRSP 2021-FL 1 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Weighted average cost of funds percentage | 1.49% | |||||||||||||
Investment grade notes | Secured Overnight Financing Rate (SOFR) | CLNC 2019-FL1 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Benchmark adjustment | 0.11448% | |||||||||||||
Additional lookback period | 2 days | |||||||||||||
Master repurchase facilities | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Maximum borrowing capacity | $ 2,300,000,000 | $ 2,300,000,000 | ||||||||||||
CMBS credit facilities | Real estate securities, available for sale | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Number of master repurchase agreements (in agreements) | agreement | 8 | 8 | ||||||||||||
Master repurchase facilities | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Principal amount | $ 1,487,567,000 | $ 905,122,000 | $ 1,487,567,000 | |||||||||||
Carrying amount | 1,487,567,000 | $ 1,487,567,000 | ||||||||||||
Master repurchase facilities | Minimum | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Initial debt term (in years) | 2 years | |||||||||||||
Master repurchase facilities | Maximum | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Initial debt term (in years) | 5 years | |||||||||||||
Master repurchase facilities | Revolving credit facility | Bank 9 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Maturity date extension | 2 years 6 months | |||||||||||||
Master repurchase facilities | Revolving credit facility | Credit agreement | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Maximum borrowing capacity | $ 165,000,000 | 165,000,000 | $ 165,000,000 | $ 300,000,000 | ||||||||||
Borrowing capacity, increase to maximum available principal amount | $ 300,000,000 | |||||||||||||
Maximum amount of base value available for borrowing | 50% | |||||||||||||
Number of additional terms (in terms) | term | 2 | |||||||||||||
Length of potential extension terms | 6 months | |||||||||||||
Tangible net worth | $ 1,112,000,000 | $ 1,112,000,000 | ||||||||||||
Percentage of net cash proceeds from offering | 0.70 | 0.70 | ||||||||||||
EBITDA plus lease expenses to fixed charges | 1.50 | 1.50 | ||||||||||||
Minimum interest coverage ratio | 3 | 3 | ||||||||||||
Maximum leverage ratio | 0.80 | 0.80 | ||||||||||||
Master repurchase facilities | Revolving credit facility | Credit agreement | Minimum | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Unused amount, commitment fee percentage | 0.25% | |||||||||||||
Master repurchase facilities | Revolving credit facility | Credit agreement | Maximum | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Unused amount, commitment fee percentage | 0.35% | |||||||||||||
Master repurchase facilities | Revolving credit facility | Credit agreement | Federal funds rate | Option two | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Interest rate margin (in percentage) | 0.50% | |||||||||||||
Master repurchase facilities | Revolving credit facility | Credit agreement | Secured Overnight Financing Rate (SOFR) | Option one | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Interest rate margin (in percentage) | 2.25% | |||||||||||||
Master repurchase facilities | Revolving credit facility | Credit agreement | Secured Overnight Financing Rate (SOFR) | Option two | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Interest rate margin (in percentage) | 1% | |||||||||||||
Margin on basis spread on variable rate | 0.0125 | |||||||||||||
Master repurchase facilities | Master repurchase facilities | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Maximum borrowing capacity | $ 2,250,000,000 | $ 2,250,000,000 | ||||||||||||
Principal amount | 1,487,567,000 | $ 905,122,000 | 1,487,567,000 | |||||||||||
Carrying amount | 1,500,000,000 | 905,100,000 | 1,500,000,000 | |||||||||||
Master repurchase facilities | Master repurchase facilities | Asset Pledged as Collateral | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Carrying value of CRE debt investments | 2,000,000,000 | 1,200,000,000 | 2,000,000,000 | |||||||||||
Master repurchase facilities | Master repurchase facilities | Bank 9 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Borrowing capacity, increase to maximum available principal amount | $ 100,000,000 | 100,000,000 | ||||||||||||
Maturity date extension | 1 year | |||||||||||||
Master repurchase facilities | Master repurchase facilities | Bank 7 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Borrowing capacity, increase to maximum available principal amount | $ 100,000,000 | 100,000,000 | ||||||||||||
Maturity date extension | 1 year | |||||||||||||
Master repurchase facilities | Master repurchase facilities | Bank 1 | Subsequent event | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Maturity date extension | 1 year | |||||||||||||
Master repurchase facilities | Master repurchase facilities | Bank 3 | Subsequent event | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Maturity date extension | 4 years | |||||||||||||
Securitization bonds payable, net | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Principal amount | $ 1,372,054,000 | 1,510,423,000 | 1,372,054,000 | |||||||||||
Carrying amount | 1,372,054,000 | 1,372,054,000 | ||||||||||||
Securitization bonds payable, net | Asset Pledged as Collateral | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Carrying value of CRE debt investments | 1,600,000,000 | 1,800,000,000 | $ 1,600,000,000 | |||||||||||
Securitization bonds payable, net | Minimum | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Initial debt term (in years) | 2 years | |||||||||||||
Securitization bonds payable, net | Maximum | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Initial debt term (in years) | 3 years | |||||||||||||
Securitization bonds payable, net | Investment grade notes | CLNC 2019-FL1 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Principal amount | 702,054,000 | 840,423,000 | $ 702,054,000 | |||||||||||
Securitization bonds payable, net | Investment grade notes | BRSP 2021-FL 1 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Principal amount | $ 670,000,000 | $ 670,000,000 | $ 670,000,000 | |||||||||||
Securitization bonds payable, net | Investment grade notes | LIBOR | BRSP 2021-FL 1 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Interest rate margin (in percentage) | 1.49% | |||||||||||||
Securitization bonds payable, net | Investment grade notes | Secured Overnight Financing Rate (SOFR) | CLNC 2019-FL1 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Interest rate margin (in percentage) | 1.66% | |||||||||||||
Letters of Credit | Revolving credit facility | Credit agreement | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Maximum borrowing capacity | $ 25,000,000 |
Related Party Arrangements - In
Related Party Arrangements - Internalization (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Apr. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Related Party Transaction [Line Items] | |||||
Restructuring charges | $ 0 | $ 150 | $ 0 | $ 109,321 | |
Manager | Management agreement | Affiliated Entity | |||||
Related Party Transaction [Line Items] | |||||
One-time termination fee | $ 102,300 | ||||
Restructuring charges | $ 300 |
Related Party Arrangements - Fe
Related Party Arrangements - Fees to the Manager (Details) - USD ($) | 3 Months Ended | 6 Months Ended |
Jun. 30, 2021 | Jun. 30, 2021 | |
Related Party Transaction [Line Items] | ||
Related party expenses incurred | $ 800,000 | $ 2,800,000 |
Incentive fee | 0 | 0 |
Asset management fees | Affiliated Entity | ||
Related Party Transaction [Line Items] | ||
Related party expenses incurred | $ 2,300,000 | $ 9,600,000 |
Related Party Arrangements - Re
Related Party Arrangements - Reimbursements of Expenses (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2021 | Jun. 30, 2022 | Dec. 31, 2021 | |
Related Party Transaction [Line Items] | ||||
Related party expenses incurred | $ 0.8 | $ 2.8 | ||
Affiliated Entity | Operating costs | ||||
Related Party Transaction [Line Items] | ||||
Due to related party | $ 0 | $ 0 |
Equity-Based Compensation - Nar
Equity-Based Compensation - Narrative (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||
May 06, 2022 shares | May 05, 2022 shares | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) shares | Jun. 30, 2021 USD ($) | Dec. 31, 2021 director | Jan. 29, 2018 shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of newly appointed independent directors (in directors) | director | 2 | |||||||
Granted (in shares) | 62,190 | 1,456,366 | 1,524,482 | |||||
Share-based compensation expense | $ | $ 2,286 | $ 5,443 | $ 4,166 | $ 9,705 | ||||
Fair value at vesting date | $ | 3,800 | 3,900 | ||||||
Compensation cost not yet recognized | $ | 17,400 | 11,000 | $ 17,400 | $ 11,000 | ||||
Compensation cost not yet recognized, period for recognition | 2 years 3 months 18 days | 2 years 6 months | ||||||
Management | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based compensation expense | $ | $ 2,300 | $ 5,400 | $ 4,200 | $ 9,700 | ||||
Restricted Stock | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Granted (in shares) | 1,524,482 | |||||||
Vesting period | 3 years | |||||||
Service period | 3 years | |||||||
PSUs | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Granted (in shares) | 0 | |||||||
Measurement period | 2 years | |||||||
Minimum | PSUs | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of PSUs granted and eligible to vest | 0% | |||||||
Maximum | PSUs | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of PSUs granted and eligible to vest | 200% | |||||||
Class A | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of shares available for grant (in shares) | 4,000,000 | |||||||
Number of additional shares authorized (in shares) | 10,000,000 | |||||||
Class A | Restricted Stock | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting period | 1 year |
Equity-Based Compensation - Fai
Equity-Based Compensation - Fair Value Assumptions (Details) | 6 Months Ended |
Jun. 30, 2022 | |
Related Party Transactions [Abstract] | |
Expected volatility | 86.60% |
Risk free rate | 0.10% |
Expected dividend yield | 0% |
Equity-Based Compensation - Sum
Equity-Based Compensation - Summary of Awards Granted or Vested (Details) - $ / shares | 6 Months Ended | ||
May 06, 2022 | May 05, 2022 | Jun. 30, 2022 | |
Number of Shares [Roll Forward] | |||
Unvested Shares at beginning of period (in shares) | 1,754,094 | ||
Granted (in shares) | 62,190 | 1,456,366 | 1,524,482 |
Vested (in shares) | (605,422) | ||
Unvested shares at end of period (in shares) | 2,673,154 | ||
Restricted Stock | |||
Number of Shares [Roll Forward] | |||
Unvested Shares at beginning of period (in shares) | 1,482,094 | ||
Granted (in shares) | 1,524,482 | ||
Vested (in shares) | (605,422) | ||
Unvested shares at end of period (in shares) | 2,401,154 | ||
Weighted Average Grant Date Fair Value [Roll Forward] | |||
Unvested Shares at beginning of period, weighted average grant date fair value (in dollars per share) | $ 12.35 | ||
Granted, weighted average grant date fair value (in dollars per share) | 8.59 | ||
Vested, weighted average grant date fair value (in dollars per share) | 9.18 | ||
Unvested shares at end of period, weighted average grant date fair value (Unaudited) (in dollars per share) | $ 10.23 | ||
PSUs | |||
Number of Shares [Roll Forward] | |||
Unvested Shares at beginning of period (in shares) | 272,000 | ||
Granted (in shares) | 0 | ||
Vested (in shares) | 0 | ||
Unvested shares at end of period (in shares) | 272,000 | ||
Weighted Average Grant Date Fair Value [Roll Forward] | |||
Unvested Shares at beginning of period, weighted average grant date fair value (in dollars per share) | $ 11.96 | ||
Granted, weighted average grant date fair value (in dollars per share) | 0 | ||
Vested, weighted average grant date fair value (in dollars per share) | 0 | ||
Unvested shares at end of period, weighted average grant date fair value (Unaudited) (in dollars per share) | $ 11.96 |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2022 USD ($) loan $ / shares shares | Mar. 31, 2022 loan | Jun. 30, 2022 USD ($) $ / shares shares | Jun. 30, 2021 USD ($) | May 31, 2022 USD ($) | Dec. 31, 2021 $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares authorized for issuance (in shares) | 1,000,000,000 | 1,000,000,000 | ||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | |||
Preferred stock, shares authorized (in shares) | 50,000,000 | 50,000,000 | 50,000,000 | |||
Preferred stock, shares issued (in shares) | 0 | 0 | 0 | |||
Stock repurchase program, amount authorized for repurchase | $ | $ 100,000 | |||||
Shares repurchased (in shares) | 2,200,000 | 2,200,000 | ||||
Shares repurchased, weighted average price (in dollars per share) | $ / shares | $ 8.40 | $ 8.40 | ||||
Cost of shares repurchased | $ | $ 18,300 | $ 18,300 | ||||
Outstanding membership units redeemed (in units) | 3,100,000 | |||||
Outstanding membership units redeemed (per unit) | $ / shares | $ 8.25 | |||||
Redemption amount | $ | 25,383 | $ 0 | ||||
Amount available to repurchase under Stock Repurchase Plan | $ | $ 81,700 | $ 81,700 | ||||
Preferred stock, shares outstanding (in shares) | 0 | 0 | 0 | |||
BrightSpire Capital Operating Company, LLC | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Redemption amount | $ | $ 25,400 | |||||
Investment grade notes | CLNC 2019-FL1 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of loan investments removed (in loans) | loan | 3 | 2 | ||||
Class A | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Common stock, shares authorized (in shares) | 950,000,000 | 950,000,000 | 950,000,000 |
Stockholders' Equity - Dividend
Stockholders' Equity - Dividends (Details) - $ / shares | 3 Months Ended | |||||
Jun. 15, 2022 | Mar. 15, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | |
Equity [Abstract] | ||||||
Dividends and distributions declared per share of common stock (in dollars per share) | $ 0.20 | $ 0.19 | $ 0.20 | $ 0.19 | $ 0.14 | $ 0.10 |
Stockholders' Equity - AOCI (De
Stockholders' Equity - AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
AOCI Attributable to Noncontrolling Interest, Net of Tax [Abstract] | ||||||
Beginning balance | $ 1,495,920 | $ 1,491,315 | $ 1,835,699 | $ 1,958,678 | $ 1,491,315 | $ 1,958,678 |
Total other comprehensive income (loss) | (9,810) | 676 | 2,213 | (8,733) | (9,134) | (6,519) |
Ending balance | 1,453,349 | 1,495,920 | 1,787,691 | 1,835,699 | 1,453,349 | 1,787,691 |
Accumulated Other Comprehensive Income | ||||||
AOCI Attributable to Noncontrolling Interest, Net of Tax [Abstract] | ||||||
Beginning balance | 9,446 | 8,786 | 46,846 | 54,588 | 8,786 | 54,588 |
Other comprehensive income (loss) before reclassification | (9,810) | (8,502) | ||||
Amounts reclassified from AOCI | (146) | 760 | ||||
Total other comprehensive income (loss) | (9,956) | 660 | 1,966 | (7,742) | ||
Ending balance | (510) | 9,446 | 48,812 | 46,846 | (510) | 48,812 |
Unrealized gain (loss) on real estate securities, available for sale | ||||||
AOCI Attributable to Noncontrolling Interest, Net of Tax [Abstract] | ||||||
Beginning balance | 0 | 275 | 275 | |||
Other comprehensive income (loss) before reclassification | (1,035) | |||||
Amounts reclassified from AOCI | 760 | |||||
Total other comprehensive income (loss) | 0 | (275) | ||||
Ending balance | 0 | 0 | 0 | |||
Unrealized gain on net investment hedges | ||||||
AOCI Attributable to Noncontrolling Interest, Net of Tax [Abstract] | ||||||
Beginning balance | 17,893 | 17,893 | 47,127 | 47,127 | 17,893 | 47,127 |
Other comprehensive income (loss) before reclassification | 0 | 0 | ||||
Amounts reclassified from AOCI | 710 | 0 | ||||
Total other comprehensive income (loss) | 710 | 0 | 0 | 0 | ||
Ending balance | 18,603 | 17,893 | 47,127 | 47,127 | 18,603 | 47,127 |
Foreign currency translation gain (loss) | ||||||
AOCI Attributable to Noncontrolling Interest, Net of Tax [Abstract] | ||||||
Beginning balance | (8,447) | (9,107) | (281) | 7,186 | (9,107) | 7,186 |
Other comprehensive income (loss) before reclassification | (9,810) | (7,467) | ||||
Amounts reclassified from AOCI | (856) | 0 | ||||
Total other comprehensive income (loss) | (10,666) | 660 | 1,966 | (7,467) | ||
Ending balance | (19,113) | (8,447) | 1,685 | (281) | (19,113) | 1,685 |
AOCI Attributable to Noncontrolling Interest | OP | ||||||
AOCI Attributable to Noncontrolling Interest, Net of Tax [Abstract] | ||||||
Beginning balance | (146) | (162) | 843 | 1,058 | (162) | 1,058 |
Other comprehensive income (loss) before reclassification | (190) | |||||
Amounts reclassified from AOCI | (25) | |||||
Total other comprehensive income (loss) | 146 | 16 | (89) | (215) | ||
Ending balance | 0 | (146) | 754 | 843 | 0 | 754 |
AOCI Attributable to Noncontrolling Interest | Investment Entities | ||||||
AOCI Attributable to Noncontrolling Interest, Net of Tax [Abstract] | ||||||
Beginning balance | 0 | 1,872 | 1,417 | 2,193 | 1,872 | 2,193 |
Other comprehensive income (loss) before reclassification | 0 | |||||
Amounts reclassified from AOCI | (1,872) | |||||
Total other comprehensive income (loss) | 0 | (1,872) | 336 | (776) | ||
Ending balance | 0 | 0 | 1,753 | 1,417 | 0 | 1,753 |
Unrealized gain (loss) on real estate securities, available for sale | OP | ||||||
AOCI Attributable to Noncontrolling Interest, Net of Tax [Abstract] | ||||||
Beginning balance | 0 | (73) | (73) | |||
Other comprehensive income (loss) before reclassification | 0 | 98 | ||||
Amounts reclassified from AOCI | (710) | (25) | ||||
Total other comprehensive income (loss) | 0 | 73 | ||||
Ending balance | 0 | 0 | 0 | |||
Unrealized gain on net investment hedges | OP | ||||||
AOCI Attributable to Noncontrolling Interest, Net of Tax [Abstract] | ||||||
Beginning balance | 710 | 710 | 1,403 | 1,403 | 710 | 1,403 |
Other comprehensive income (loss) before reclassification | 0 | 0 | ||||
Amounts reclassified from AOCI | 856 | 0 | ||||
Total other comprehensive income (loss) | (710) | 0 | 0 | 0 | ||
Ending balance | 0 | 710 | 1,403 | 1,403 | 0 | 1,403 |
Foreign currency translation gain (loss) | OP | ||||||
AOCI Attributable to Noncontrolling Interest, Net of Tax [Abstract] | ||||||
Beginning balance | (856) | (872) | (560) | (272) | (872) | (272) |
Other comprehensive income (loss) before reclassification | 0 | (288) | ||||
Amounts reclassified from AOCI | 146 | 0 | ||||
Total other comprehensive income (loss) | 856 | 16 | (89) | (288) | ||
Ending balance | 0 | (856) | (649) | (560) | 0 | (649) |
Foreign currency translation gain (loss) | Investment Entities | ||||||
AOCI Attributable to Noncontrolling Interest, Net of Tax [Abstract] | ||||||
Beginning balance | 0 | 1,872 | 1,417 | 2,193 | 1,872 | 2,193 |
Other comprehensive income (loss) before reclassification | 0 | |||||
Amounts reclassified from AOCI | (1,872) | |||||
Total other comprehensive income (loss) | 0 | (1,872) | 336 | (776) | ||
Ending balance | $ 0 | $ 0 | $ 1,753 | $ 1,417 | $ 0 | $ 1,753 |
Stockholders' Equity - Reclassi
Stockholders' Equity - Reclassification out of AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other gain (loss), net | $ 24,332 | $ 836 | $ 34,620 | $ 9,203 |
Reclassification out of AOCI | Realized gain on sale of real estate securities | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other gain (loss), net | 104 | |||
Reclassification out of AOCI | Impairment of real estate securities | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other gain (loss), net | $ (967) |
Noncontrolling Interests (Detai
Noncontrolling Interests (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Noncontrolling Interest [Line Items] | ||||
Redemption amount | $ 25,383 | $ 0 | ||
Net income (loss) attributable to noncontrolling interests | $ 359 | $ (437) | 1,013 | (2,390) |
Net income (loss) attributable to noncontrolling interests, investment entities | (15) | $ (3,459) | $ 7 | $ (3,685) |
BrightSpire Capital Operating Company, LLC | ||||
Noncontrolling Interest [Line Items] | ||||
Redemption amount | $ 25,400 |
Fair Value - Financial Assets M
Fair Value - Financial Assets Measured on a Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Assets: | ||
Mortgage loans held in securitization trusts, at fair value | $ 718,335 | $ 813,310 |
Other assets - derivative assets | 3,202 | 1,373 |
Liabilities: | ||
Mortgage obligations issued by securitization trusts, at fair value | 682,181 | 777,156 |
Recurring basis | ||
Assets: | ||
Other assets - PE Investments | 4,406 | 4,406 |
Mortgage loans held in securitization trusts, at fair value | 718,335 | 813,310 |
Other assets - derivative assets | 3,202 | 1,373 |
Liabilities: | ||
Mortgage obligations issued by securitization trusts, at fair value | 682,181 | 777,156 |
Other liabilities - derivative liabilities | 0 | 9 |
Recurring basis | Level 1 | ||
Assets: | ||
Other assets - PE Investments | 0 | 0 |
Mortgage loans held in securitization trusts, at fair value | 0 | 0 |
Other assets - derivative assets | 0 | 0 |
Liabilities: | ||
Mortgage obligations issued by securitization trusts, at fair value | 0 | 0 |
Other liabilities - derivative liabilities | 0 | 0 |
Recurring basis | Level 2 | ||
Assets: | ||
Other assets - PE Investments | 0 | 0 |
Mortgage loans held in securitization trusts, at fair value | 0 | 0 |
Other assets - derivative assets | 3,202 | 1,373 |
Liabilities: | ||
Mortgage obligations issued by securitization trusts, at fair value | 682,181 | 777,156 |
Other liabilities - derivative liabilities | 0 | 9 |
Recurring basis | Level 3 | ||
Assets: | ||
Other assets - PE Investments | 4,406 | 4,406 |
Mortgage loans held in securitization trusts, at fair value | 718,335 | 813,310 |
Other assets - derivative assets | 0 | 0 |
Liabilities: | ||
Mortgage obligations issued by securitization trusts, at fair value | 0 | 0 |
Other liabilities - derivative liabilities | $ 0 | $ 0 |
Fair Value - Changes in Fair Va
Fair Value - Changes in Fair Value of Financial Assets Measured on a Recurring Basis (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Additional information about financial assets | |||||
Realized loss in earnings | $ 0 | $ (19,516) | $ 0 | $ (19,516) | |
Level 3 | Mortgage loans held in securitization trusts | |||||
Additional information about financial assets | |||||
Unrealized loss in earnings | (79,000) | ||||
Unrealized gain (loss) in earnings | 79,000 | ||||
Recurring basis | Level 3 | Other assets - PE Investments | |||||
Additional information about financial assets | |||||
Beginning balance | 4,406 | 6,878 | $ 6,878 | ||
Distributions/paydowns | 0 | (2,380) | |||
Sale of investments | 0 | 0 | |||
Transfers out of Level 3 | 0 | 0 | |||
Equity in earnings | 0 | (92) | |||
Unrealized loss in earnings | 0 | 0 | |||
Realized loss in earnings | 0 | 0 | |||
Ending balance | 4,406 | 4,406 | 4,406 | ||
Recurring basis | Level 3 | Mortgage loans held in securitization trusts | |||||
Additional information about financial assets | |||||
Beginning balance | 813,310 | $ 1,768,069 | 1,768,069 | ||
Distributions/paydowns | (15,946) | (78,903) | |||
Sale of investments | 0 | (28,662) | |||
Transfers out of Level 3 | 0 | (802,196) | |||
Equity in earnings | 0 | 0 | |||
Unrealized loss in earnings | (79,029) | (8,375) | |||
Realized loss in earnings | 0 | (36,623) | |||
Ending balance | $ 718,335 | $ 718,335 | $ 813,310 |
Fair Value - Narrative (Details
Fair Value - Narrative (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2022 USD ($) measurement_input | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) measurement_input | Jun. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) measurement_input | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Unrealized gain on mortgage loans and obligations held in securitization trusts, net | $ 0 | $ 19,516 | $ 0 | $ 28,154 | |
Realized loss in earnings | $ 0 | $ (19,516) | 0 | $ (19,516) | |
Level 3 | Recurring | Other assets - PE Investments | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Realized loss in earnings | $ 0 | $ 0 | |||
Level 3 | Recurring | Other assets - PE Investments | Discount Rate | Minimum | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
PE investment, measurement input | measurement_input | 0.110 | 0.110 | 0.110 | ||
Level 3 | Recurring | Other assets - PE Investments | Discount Rate | Maximum | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
PE investment, measurement input | measurement_input | 0.120 | 0.120 | 0.120 | ||
Level 3 | Recurring | Mortgage obligations issued by securitization trusts | Measurement Input, Yield | Minimum | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Discount rate | measurement_input | 0.207 | 0.207 | 0.175 | ||
Level 3 | Recurring | Mortgage obligations issued by securitization trusts | Measurement Input, Expected Term | Weighted average | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Weighted average expected maturity of CRE securities | 4 years 10 months 24 days | 5 years 4 months 24 days | |||
Level 3 | Recurring | Mortgage loans held in securitization trusts | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Realized loss in earnings | $ 0 | $ (36,623) |
Fair Value - Principal Amount,
Fair Value - Principal Amount, Carrying Value and Fair Value of Assets and Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Financial assets: | ||
Principal amount, financial assets | $ 3,850,052 | $ 3,500,658 |
Financial liabilities: | ||
Principal amount, financial liabilities | 3,518,673 | 3,176,361 |
Commercial mortgage | ||
Financial assets: | ||
Principal amount, financial assets | 3,850,052 | 3,500,658 |
Financial liabilities: | ||
Future funding commitments | 312,900 | 264,900 |
Carrying Value | ||
Financial assets: | ||
Loans held for investment, net | 3,789,145 | 3,449,009 |
Fair Value | ||
Financial assets: | ||
Loans held for investment, net | 3,805,674 | 3,464,060 |
Securitization bonds payable, net | ||
Financial liabilities: | ||
Principal amount, financial liabilities | 1,372,054 | 1,510,423 |
Securitization bonds payable, net | Carrying Value | ||
Financial liabilities: | ||
Financial liabilities | 1,364,906 | 1,500,899 |
Securitization bonds payable, net | Fair Value | ||
Financial liabilities: | ||
Financial liabilities | 1,372,054 | 1,510,423 |
Mortgage and other notes payable, net | ||
Financial liabilities: | ||
Principal amount, financial liabilities | 659,052 | 760,816 |
Mortgage and other notes payable, net | Carrying Value | ||
Financial liabilities: | ||
Financial liabilities | 658,857 | 760,583 |
Mortgage and other notes payable, net | Fair Value | ||
Financial liabilities: | ||
Financial liabilities | 659,052 | 760,816 |
Master repurchase facilities | ||
Financial liabilities: | ||
Principal amount, financial liabilities | 1,487,567 | 905,122 |
Master repurchase facilities | Carrying Value | ||
Financial liabilities: | ||
Financial liabilities | 1,487,567 | 905,122 |
Master repurchase facilities | Fair Value | ||
Financial liabilities: | ||
Financial liabilities | $ 1,487,567 | $ 905,122 |
Fair Value - Fair Value - Summa
Fair Value - Fair Value - Summary of Assets Carried at Fair Value on a Nonrecurring Basis (Details) (Details) - Fair value, measurements, nonrecurring $ in Thousands | Dec. 31, 2021 USD ($) |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Other assets - PE Investments | $ 38,083,000 |
Level 1 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Other assets - PE Investments | 0 |
Level 2 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Other assets - PE Investments | 0 |
Level 3 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Other assets - PE Investments | $ 38,083,000 |
Derivatives - Schedule of Deriv
Derivatives - Schedule of Derivatives Assets and Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Other assets | ||
Derivative Assets | ||
Non-designated hedges included in other assets | $ 3,202 | $ 1,373 |
Other assets | Foreign exchange contracts | ||
Derivative Assets | ||
Non-designated hedges included in other assets | 3,200 | 1,373 |
Other assets | Interest rate contracts | ||
Derivative Assets | ||
Non-designated hedges included in other assets | 2 | 2 |
Accrued and other liabilities | ||
Derivative Liabilities | ||
Non-designated hedges included in accrued and other liabilities | 0 | (9) |
Accrued and other liabilities | Interest rate contracts | ||
Derivative Liabilities | ||
Non-designated hedges included in accrued and other liabilities | $ 0 | $ (9) |
Derivatives - Summary Of Intere
Derivatives - Summary Of Interest Rate Contracts (Details) - Non-Designated kr in Thousands, $ in Thousands | Jun. 30, 2022 NOK (kr) | Jun. 30, 2022 USD ($) | Dec. 31, 2021 NOK (kr) | Dec. 31, 2021 USD ($) |
FX Forward | ||||
Derivative [Line Items] | ||||
Notional amount | kr | kr 182,748 | kr 190,772 | ||
Interest Rate Swap | ||||
Derivative [Line Items] | ||||
Notional amount | $ | $ 527 | $ 30,762 |
Derivatives - Summary of Deriva
Derivatives - Summary of Derivative Effects (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||
Non-designated foreign exchange contracts | $ 2,116 | $ 1,232 | $ 1,895 | $ 952 |
Non-designated interest rate contracts | 4 | 5 | 12 | 18 |
Other gain, net | $ 2,120 | $ 1,237 | $ 1,907 | $ 970 |
Derivatives - Narrative (Detail
Derivatives - Narrative (Details) | Jun. 30, 2022 USD ($) |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Cash collateral for the derivative contracts | $ 0 |
Derivatives - Offsetting Assets
Derivatives - Offsetting Assets and Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Derivative Assets | ||
Gross amounts of assets included on consolidated balance sheets | $ 3,202 | $ 1,373 |
Net amounts of assets | 3,202 | 1,373 |
Derivative Liabilities | ||
Gross amounts of (liabilities) included on consolidated balance sheets | (9) | |
Net amounts of liabilities | (9) | |
Foreign exchange contracts | ||
Derivative Assets | ||
Gross amounts of assets included on consolidated balance sheets | 3,200 | 1,373 |
Net amounts of assets | $ 3,200 | 1,373 |
Interest rate contracts | ||
Derivative Liabilities | ||
Gross amounts of (liabilities) included on consolidated balance sheets | (9) | |
Net amounts of liabilities | $ (9) |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Ground Leases | ||
Debt Instrument [Line Items] | ||
Weighted average remaining lease term | 13 years 9 months 18 days | 13 years 10 months 24 days |
Weighted average discount rate (as a percentage) | 5.30% | |
New York and Los Angeles Offices | ||
Debt Instrument [Line Items] | ||
Weighted average remaining lease term | 6 years 7 months 6 days | |
Weighted average discount rate (as a percentage) | 2.36% | |
Senior loans | ||
Debt Instrument [Line Items] | ||
Future funding commitments | $ 282.9 | $ 212.6 |
Securitized loans | ||
Debt Instrument [Line Items] | ||
Future funding commitments | 18.6 | $ 52.3 |
Mezzanine loans | ||
Debt Instrument [Line Items] | ||
Future funding commitments | $ 11.4 |
Commitments and Contingencies_2
Commitments and Contingencies - Summary of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Ground Leases | ||||
Long-term Purchase Commitment [Line Items] | ||||
Minimum/fixed lease expense | $ 768 | $ 761 | $ 1,536 | $ 1,529 |
Variable lease expense | 0 | 0 | 0 | 0 |
Total operating lease expense | 768 | 761 | 1,536 | 1,529 |
New York and Los Angeles Offices | ||||
Long-term Purchase Commitment [Line Items] | ||||
Minimum/fixed lease expense | 315 | 133 | 591 | 133 |
Total operating lease expense | $ 315 | $ 133 | $ 591 | $ 133 |
Commitments and Contingencies_3
Commitments and Contingencies - Future Minimum Rental Payments (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Long-term Purchase Commitment [Line Items] | ||
Operating lease liability | $ 27,153 | $ 25,205 |
Ground Leases | ||
Long-term Purchase Commitment [Line Items] | ||
Remainder of 2022 | 1,554 | |
2023 | 3,110 | |
2024 | 2,213 | |
2025 | 2,148 | |
2026 | 2,073 | |
2027 and thereafter | 17,254 | |
Total lease payments | 28,352 | |
Less: Present value discount | 9,135 | |
Operating lease liability | 19,217 | |
New York and Los Angeles Offices | ||
Long-term Purchase Commitment [Line Items] | ||
Remainder of 2022 | 399 | |
2023 | 1,239 | |
2024 | 1,293 | |
2025 | 1,308 | |
2026 | 1,323 | |
2027 and thereafter | 3,068 | |
Total lease payments | 8,630 | |
Less: Present value discount | 694 | |
Operating lease liability | $ 7,936 |
Segment Reporting - Reportable
Segment Reporting - Reportable Operating Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | |||||||
Management fee expense | $ 0 | $ (2,338) | $ 0 | $ (9,596) | |||
Property operating expense | (5,266) | (6,758) | (11,990) | (14,869) | |||
Transaction, investment and servicing expense | (982) | (644) | (2,106) | (2,932) | |||
Interest expense on real estate | (7,117) | (7,777) | (14,673) | (16,410) | |||
Depreciation and amortization | (8,720) | (9,994) | (17,314) | (19,533) | |||
Increase of current expected credit loss reserve | (10,143) | (1,200) | (9,277) | (4,425) | |||
Compensation and benefits | (8,269) | (10,053) | (16,494) | (16,839) | |||
Operating expense | (4,070) | (4,000) | (8,419) | (9,809) | |||
Restructuring charges | 0 | (150) | 0 | (109,321) | |||
Unrealized gain on mortgage loans and obligations held in securitization trusts, net | 0 | 19,516 | 0 | 28,154 | |||
Realized loss on mortgage loans and obligations held in securitization trusts, net | 0 | (19,516) | 0 | (19,516) | |||
Other gain (loss), net | 24,332 | 836 | 34,620 | 9,203 | |||
Income (loss) before equity in earnings of unconsolidated ventures and income taxes | 35,096 | 10,038 | 63,506 | (83,778) | |||
Equity in earnings (loss) of unconsolidated ventures | 0 | (33,788) | 25 | (36,266) | |||
Income tax expense | (465) | 134 | (501) | 1,935 | |||
Net income (loss) | 34,631 | $ 28,400 | (23,616) | $ (94,493) | 63,030 | (118,109) | |
Total Assets | 5,840,092 | 5,840,092 | $ 5,638,369 | ||||
Investments in unconsolidated ventures | 16,200 | ||||||
PE Investments | 4,400 | 4,400 | 4,400 | ||||
Core | |||||||
Segment Reporting Information [Line Items] | |||||||
Net interest income (expense) | 32,763 | 26,207 | 62,148 | 50,439 | |||
Property and other income | 22,568 | 25,909 | 47,011 | 51,676 | |||
Management fee expense | (2,338) | (9,596) | |||||
Property operating expense | (5,266) | (6,758) | (11,990) | (14,869) | |||
Transaction, investment and servicing expense | (982) | (644) | (2,106) | (2,932) | |||
Interest expense on real estate | (7,117) | (7,777) | (14,673) | (16,410) | |||
Depreciation and amortization | (8,720) | (9,994) | (17,314) | (19,533) | |||
Increase of current expected credit loss reserve | (10,143) | (1,200) | (9,277) | (4,425) | |||
Compensation and benefits | (8,269) | (10,053) | (16,494) | (16,839) | |||
Operating expense | (4,070) | (4,000) | (8,419) | (9,809) | |||
Restructuring charges | (150) | (109,321) | |||||
Unrealized gain on mortgage loans and obligations held in securitization trusts, net | 19,516 | 28,154 | |||||
Realized loss on mortgage loans and obligations held in securitization trusts, net | (19,516) | (19,516) | |||||
Other gain (loss), net | 24,332 | 836 | 34,620 | 9,203 | |||
Income (loss) before equity in earnings of unconsolidated ventures and income taxes | 35,096 | 10,038 | 63,506 | (83,778) | |||
Equity in earnings (loss) of unconsolidated ventures | (33,788) | 25 | (36,266) | ||||
Income tax expense | (465) | 134 | (501) | 1,935 | |||
Net income (loss) | 34,631 | (23,616) | 63,030 | (118,109) | |||
Total Assets | 5,840,092 | 5,840,092 | 5,638,369 | ||||
Core | Senior and Mezzanine Loans and Preferred Equity | |||||||
Segment Reporting Information [Line Items] | |||||||
Net interest income (expense) | 32,064 | 25,926 | 61,428 | 48,845 | |||
Property and other income | 78 | 181 | 199 | 180 | |||
Management fee expense | 0 | 0 | |||||
Property operating expense | 0 | 0 | 0 | 0 | |||
Transaction, investment and servicing expense | (961) | (563) | (2,011) | (1,252) | |||
Interest expense on real estate | 0 | 0 | 0 | 0 | |||
Depreciation and amortization | 0 | 0 | 0 | 0 | |||
Increase of current expected credit loss reserve | (10,143) | (1,200) | (9,277) | (4,425) | |||
Compensation and benefits | 0 | 0 | 0 | 0 | |||
Operating expense | 13 | (291) | (139) | (540) | |||
Restructuring charges | 0 | 0 | |||||
Unrealized gain on mortgage loans and obligations held in securitization trusts, net | 0 | 0 | |||||
Realized loss on mortgage loans and obligations held in securitization trusts, net | 0 | 0 | |||||
Other gain (loss), net | 21,484 | (400) | 21,355 | (400) | |||
Income (loss) before equity in earnings of unconsolidated ventures and income taxes | 42,535 | 23,653 | 71,555 | 42,408 | |||
Equity in earnings (loss) of unconsolidated ventures | (33,665) | 25 | (36,066) | ||||
Income tax expense | (416) | 0 | (353) | 0 | |||
Net income (loss) | 42,119 | (10,012) | 71,227 | 6,342 | |||
Total Assets | 3,910,416 | 3,910,416 | 3,589,325 | ||||
Core | CRE Debt Securities | |||||||
Segment Reporting Information [Line Items] | |||||||
Net interest income (expense) | 1,134 | 1,279 | 2,021 | 3,632 | |||
Property and other income | 219 | 0 | 352 | 53 | |||
Management fee expense | 0 | 0 | |||||
Property operating expense | 0 | 0 | 0 | 0 | |||
Transaction, investment and servicing expense | 29 | 0 | 29 | (167) | |||
Interest expense on real estate | 0 | 0 | 0 | 0 | |||
Depreciation and amortization | 0 | 0 | 0 | 0 | |||
Increase of current expected credit loss reserve | 0 | 0 | 0 | 0 | |||
Compensation and benefits | 0 | 0 | 0 | 0 | |||
Operating expense | (245) | (166) | (285) | (946) | |||
Restructuring charges | 0 | 0 | |||||
Unrealized gain on mortgage loans and obligations held in securitization trusts, net | 19,516 | 28,154 | |||||
Realized loss on mortgage loans and obligations held in securitization trusts, net | (19,516) | (19,516) | |||||
Other gain (loss), net | 0 | 0 | 0 | (859) | |||
Income (loss) before equity in earnings of unconsolidated ventures and income taxes | 1,137 | 1,113 | 2,117 | 10,351 | |||
Equity in earnings (loss) of unconsolidated ventures | (123) | 0 | (200) | ||||
Income tax expense | 0 | 49 | 0 | 1,826 | |||
Net income (loss) | 1,137 | 1,039 | 2,117 | 11,977 | |||
Total Assets | 741,747 | 741,747 | 840,215 | ||||
Core | Net Leased and Other Real Estate | |||||||
Segment Reporting Information [Line Items] | |||||||
Net interest income (expense) | 0 | 0 | 0 | 0 | |||
Property and other income | 21,806 | 24,808 | 45,974 | 50,605 | |||
Management fee expense | 0 | 0 | |||||
Property operating expense | (5,266) | (6,758) | (11,990) | (14,869) | |||
Transaction, investment and servicing expense | (52) | (62) | (152) | (177) | |||
Interest expense on real estate | (7,117) | (7,777) | (14,673) | (16,410) | |||
Depreciation and amortization | (8,664) | (9,948) | (17,215) | (19,487) | |||
Increase of current expected credit loss reserve | 0 | 0 | 0 | 0 | |||
Compensation and benefits | 0 | 0 | 0 | 0 | |||
Operating expense | (56) | 0 | (88) | (31) | |||
Restructuring charges | 0 | 0 | |||||
Unrealized gain on mortgage loans and obligations held in securitization trusts, net | 0 | 0 | |||||
Realized loss on mortgage loans and obligations held in securitization trusts, net | 0 | 0 | |||||
Other gain (loss), net | 2,093 | 1,236 | 13,929 | 10,462 | |||
Income (loss) before equity in earnings of unconsolidated ventures and income taxes | 2,744 | 1,499 | 15,785 | 10,093 | |||
Equity in earnings (loss) of unconsolidated ventures | 0 | 0 | 0 | ||||
Income tax expense | (49) | 85 | (148) | 109 | |||
Net income (loss) | 2,695 | 1,584 | 15,637 | 10,202 | |||
Total Assets | 872,190 | 872,190 | 963,369 | ||||
Core | Corporate | |||||||
Segment Reporting Information [Line Items] | |||||||
Net interest income (expense) | (435) | (998) | (1,301) | (2,038) | |||
Property and other income | 465 | 920 | 486 | 838 | |||
Management fee expense | (2,338) | (9,596) | |||||
Property operating expense | 0 | 0 | 0 | 0 | |||
Transaction, investment and servicing expense | 2 | (19) | 28 | (1,336) | |||
Interest expense on real estate | 0 | 0 | 0 | 0 | |||
Depreciation and amortization | (56) | (46) | (99) | (46) | |||
Increase of current expected credit loss reserve | 0 | 0 | 0 | 0 | |||
Compensation and benefits | (8,269) | (10,053) | (16,494) | (16,839) | |||
Operating expense | (3,782) | (3,543) | (7,907) | (8,292) | |||
Restructuring charges | (150) | (109,321) | |||||
Unrealized gain on mortgage loans and obligations held in securitization trusts, net | 0 | 0 | |||||
Realized loss on mortgage loans and obligations held in securitization trusts, net | 0 | 0 | |||||
Other gain (loss), net | 755 | 0 | (664) | 0 | |||
Income (loss) before equity in earnings of unconsolidated ventures and income taxes | (11,320) | (16,227) | (25,951) | (146,630) | |||
Equity in earnings (loss) of unconsolidated ventures | 0 | 0 | 0 | ||||
Income tax expense | 0 | 0 | 0 | 0 | |||
Net income (loss) | (11,320) | $ (16,227) | (25,951) | $ (146,630) | |||
Total Assets | $ 315,739 | $ 315,739 | $ 245,460 |
Segment Reporting - Total Incom
Segment Reporting - Total Income and Long-lived Assets by Geography (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | |||||
Total income by geography | $ 85,372 | $ 41,432 | $ 163,785 | $ 118,784 | |
Long-lived assets by geography | 800,432 | 800,432 | $ 848,192 | ||
United States | |||||
Segment Reporting Information [Line Items] | |||||
Total income by geography | 80,758 | 67,564 | 154,202 | 138,515 | |
Long-lived assets by geography | 542,359 | 542,359 | 553,368 | ||
Europe | |||||
Segment Reporting Information [Line Items] | |||||
Total income by geography | 4,614 | $ (26,132) | 9,583 | $ (19,731) | |
Long-lived assets by geography | $ 258,073 | $ 258,073 | $ 294,824 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |||||||
Net income (loss) | $ 34,631 | $ 28,400 | $ (23,616) | $ (94,493) | $ 63,030 | $ (118,109) | |
Net (income) loss attributable to noncontrolling interests: | |||||||
Investment Entities | 15 | 3,459 | (7) | 3,685 | |||
Operating Partnership | (359) | 437 | (1,013) | 2,390 | |||
Net income (loss) attributable to BrightSpire Capital, Inc. common stockholders | 34,287 | (19,720) | 62,010 | (112,034) | |||
Numerator: | |||||||
Net (income) loss allocated to participating securities (non-vested shares) | (687) | 0 | (797) | 0 | |||
Net income attributable to BrightSpire Capital, Inc. common stockholders | $ 33,600 | $ (19,720) | $ 61,213 | $ (112,034) | |||
Denominator: | |||||||
Weighted average shares of common stock outstanding - basic (in shares) | 127,756,000 | 128,298,000 | 128,052,000 | 128,297,000 | |||
Weighted average shares of common stock outstanding - diluted (in shares) | 129,595,000 | 128,298,000 | 129,669,000 | 128,297,000 | |||
Net income (loss) per common share - basic (in dollars per share) | $ 0.26 | $ (0.15) | $ 0.48 | $ (0.87) | |||
Net income (loss) per common share - diluted (in dollars per share) | $ 0.26 | $ (0.15) | $ 0.47 | $ (0.87) | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||
Outstanding (in shares) | 2,673,154 | 2,673,154 | 1,754,094 | ||||
Restricted Stock | |||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||
Outstanding (in shares) | 2,401,154 | 1,550,862 | 2,401,154 | 1,550,862 | 1,482,094 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent event $ / shares in Units, $ in Millions | 1 Months Ended | |
Aug. 03, 2022 USD ($) loan | Jul. 31, 2022 repurchaseFacility Extension_Option $ / shares | |
Subsequent Event [Line Items] | ||
Quarterly cash dividend (in dollars per share) | $ / shares | $ 0.20 | |
Master repurchase facilities | Master repurchase facilities | Credit facilities | ||
Subsequent Event [Line Items] | ||
Number of facilities amended | repurchaseFacility | 1 | |
Number of optional extensions to initial maturity date | Extension_Option | 2 | |
Debt term extension available (in years) | 1 year | |
Bank 1 facility 3 | Master repurchase facilities | Credit facilities | ||
Subsequent Event [Line Items] | ||
Number of facilities amended | repurchaseFacility | 1 | |
Number of optional extensions to initial maturity date | Extension_Option | 3 | |
Debt term extension available (in years) | 1 year | |
Senior Mortgage Loans | ||
Subsequent Event [Line Items] | ||
Number of loans originated (in loans) | loan | 3 | |
Commitment to lend | $ | $ 91.4 | |
Initial funding per loan | $ | $ 27.7 | |
Senior Mortgage Loans | Secured Overnight Financing Rate (SOFR) | ||
Subsequent Event [Line Items] | ||
Weighted average spread | 3.52% |