Debt and Preferred Equity Investments (Tables)

3 Months Ended

Mar. 31, 2014

Investments, Debt and Equity Securities [Abstract]

As of March 31, 2014 and December 31, 2013, we held the following debt investments with an aggregate weighted average current yield of 10.69% at March 31, 2014 (in thousands):



Loan Type	March 31, 2014 Funding Commitment		March 31, 2014 Senior Financing		March 31, 2014 Carrying Value (1)		December 31, 2013 Carrying Value (1)			Initial Maturity Date
Fixed Rate Investments:
Junior Participation	$	—	$	398,500	$	11,874	$	11,856		March 2015
Mortgage/Mezzanine Loan	—		205,000		68,892		68,319			February 2016
Mezzanine Loan	—		—		10,000		—			March 2016
Mortgage/Mezzanine Loan	—		166,030		44,930		44,742			May 2016
Mezzanine Loan	—		177,000		14,739		15,012			May 2016
Junior Participation	—		133,000		49,000		49,000			June 2016
Mezzanine Loan	—		165,000		71,370		71,312			November 2016
Mortgage/Mezzanine Loan⁽²⁾	—		1,109,000		92,994		80,983			March 2017
Mezzanine Loan⁽³⁾	19,938		521,750		21,035		20,954			June 2017
Mortgage Loan	—		—		725		—			August 2019
Mezzanine Loan	—		15,000		3,500		3,500			September 2021
Mezzanine Loan⁽⁴⁾	—		90,000		19,927		19,926			November 2023
Total fixed rate	$	19,938	$	2,980,280	$	408,986	$	385,604
Floating Rate Investments:
Junior Participation	$	—	$	57,750	$	10,875	$	10,873		June 2014
Mortgage/Mezzanine Loan	—		330,000		131,853		131,724			July 2014
Mezzanine Loan	—		180,000		59,932		59,892			August 2014
Mezzanine Loan⁽⁵⁾	—		481,309		19,675		—			September 2014
Mezzanine Loan	10,897		90,718		38,948		38,549			October 2014
Mortgage Loan⁽⁶⁾	—		—		30,000		30,000			December 2014
Junior Participation⁽⁷⁾	—		84,000		24,943		24,046			February 2015
Mezzanine Loan	—		110,000		49,230		49,110			September 2015
Mezzanine Loan	13,254		93,850		36,565		27,662			December 2015
Mezzanine Loan	—		200,000		49,419		—			March 2016
Mezzanine Loan	—		775,000		73,067		72,823			March 2016
Mezzanine Loan⁽⁸⁾	—		160,000		22,538		22,526			June 2016
Mezzanine Loan	—		87,300		25,600		25,590			July 2016
Mezzanine Loan	10,743		167,524		26,436		25,725			November 2016
Mezzanine Loan	333		33,833		11,807		11,798			December 2016
Mortgage/Mezzanine Loan	—		55,000		20,548		20,553			July 2018
Mortgage/Mezzanine Loan	—		9,750		17,851		—			February 2019
Mezzanine Loan	—		38,000		21,781		—			March 2019
Total floating rate	$	35,227	$	2,954,034	$	671,068	$	550,871
Total	$	55,165	$	5,934,314	1,080,054		936,475
Loan loss reserve					—		(1,000		)
Total					$	1,080,054	$	935,475

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(1)	Carrying value is net of discounts and deferred origination fees.


(2)	During the three months ended March 31, 2014, we recognized $10.1 million of previously unaccrued interest income as deemed collectible as we expect the underlying property to be sold.


(3)	Carrying value is net of $41.3 million that was participated out, which is included in other assets and other liabilities on the consolidated balance sheets as a result of the transfer not meeting the conditions for sale accounting.


(4)	Carrying value is net of $5.0 million that was participated out, which is included in other assets and other liabilities on the consolidated balance sheets as a result of the transfer not meeting the conditions for sale accounting.


(5)	This loan was previously included in other assets on the consolidated balance sheets. Following the sale of our interest in the partnership that is the borrower, the loan was reclassified to debt and preferred equity investments.


(6)	This loan was repaid in May 2014.


(7)	In March 2014, the loan was extended to February 2015.


(8)	Carrying value is net of $7.4 million that was participated out, which is included in other assets and other liabilities on the consolidated balance sheets

Summary of preferred equity investments

As of March 31, 2014 and December 31, 2013, we held the following preferred equity investments with an aggregate weighted average current yield of 9.74% at March 31, 2014 (in thousands):



Type	March 31, 2014 Senior Financing		March 31, 2014 Carrying Value (1)		December 31, 2013 Carrying Value (1)		Initial Mandatory Redemption
Preferred equity⁽²⁾	$	525,000	$	117,194	$	115,198	July 2015
Preferred equity	260,000		40,000		—		March 2016
Preferred equity⁽²⁾⁽³⁾	55,233		25,912		25,896		April 2016
Preferred equity⁽²⁾	926,260		220,622		218,330		July 2016
Preferred equity	70,000		9,943		9,940		November 2017
	$	1,836,493	$	413,671	$	369,364

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(1)	Carrying value is net of discounts and deferred origination fees.


(2)	The difference between the pay and accrual rates is included as an addition to the principal balance outstanding.


(3)	This preferred equity investment was subsequently redeemed in April 2014.

Rollforward of total allowance for loan loss reserves

The following table is a rollforward of our total loan loss reserves at March 31, 2014 and December 31, 2013 (in thousands):



	March 31, 2014			December 31, 2013
Balance at beginning of year	$	1,000		$	7,000
Expensed	—			—
Recoveries	—			—
Charge-offs and reclassifications	(1,000		)	(6,000		)
Balance at end of period	$	—		$	1,000