COMMERCIAL REAL ESTATE INVESTMENTS (Tables)

3 Months Ended

Mar. 31, 2017

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Commercial Real Estate Investments Held for Investment

CRE Debt and Preferred Equity Investments

	March 31, 2017							December 31, 2016
	Outstanding Principal		Carrying Value(1)		Percentage of Loan Portfolio(2)			Outstanding Principal		Carrying Value(1)		Percentage of Loan Portfolio(2)
	(dollars in thousands)
Senior mortgages	$	586,400	$	583,829		59.3	%	$	512,322	$	510,071		52.6	%
Mezzanine loans		394,056		392,291		39.8	%		453,693		451,467		46.5	%
Preferred equity		9,000		8,971		0.9	%		9,000		8,967		0.9	%
Total (3)	$	989,456	$	985,091		100.0	%	$	975,015	$	970,505		100.0	%
(1) Carrying value includes unamortized origination fees of $4.4 million and $4.5 million as of March 31, 2017 and December 31, 2016, respectively.
(2) Based on outstanding principal.
(3) Excludes Loans held for sale, net.

	March 31, 2017
	Senior Mortgages			Mezzanine Loans			Preferred Equity		Total
	(dollars in thousands)
Beginning balance	$	510,071		$	451,467		$	8,967	$	970,505
Originations & advances (principal)		74,162			29,008			-		103,170
Principal payments		(84	)		(88,645	)		-		(88,729	)
Amortization & accretion of (premium) discounts		(32	)		33			-		1
Net (increase) decrease in origination fees		(741	)		(217	)		-		(958	)
Amortization of net origination fees		453			645			4		1,102
Net carrying value	$	583,829		$	392,291		$	8,971	$	985,091

	December 31, 2016
	Senior Mortgages			Senior Securitized Mortgages(1)			Mezzanine Loans			Preferred Equity			Total
	(dollars in thousands)
Beginning balance	$	385,838		$	262,703		$	578,503		$	121,773		$	1,348,817
Originations & advances (principal)		211,318			-			62,390			-			273,708
Principal payments		(86,310	)		(263,072	)		(191,291	)		(113,444	)		(654,117	)
Amortization & accretion of (premium) discounts		(136	)		-			(178	)		-			(314	)
Net (increase) decrease in origination fees		(2,086	)		-			(472	)		-			(2,558	)
Amortization of net origination fees		1,447			369			2,515			638			4,969
Net carrying value (2)	$	510,071		$	-		$	451,467		$	8,967		$	970,505
(1) Assets of consolidated VIE.
(2) Excludes Loans held for sale, net.

Internal Loan and Preferred Equity Ratings

	March 31, 2017
			Percentage of CRE Debt and Preferred Equity Portfolio			Internal Ratings
Investment Type	Outstanding Principal					Performing		Performing - Closely Monitored		Performing - Special Mention		Substandard		Doubtful		Loss		Total
	(dollars in thousands)
Senior mortgages	$	586,400		59.3	%	$	200,611	$	265,549	$	120,240	$	-	$	-	$	-	$	586,400
Mezzanine loans		394,056		39.8	%		210,068		164,801		19,187		-		-		-		394,056
Preferred equity		9,000		0.9	%		-		-		9,000		-		-		-		9,000
	$	989,456		100.0	%	$	410,679	$	430,350	$	148,427	$	-	$	-	$	-	$	989,456

	December 31, 2016
			Percentage of CRE Debt and Preferred Equity Portfolio			Internal Ratings
Investment Type	Outstanding Principal (1)					Performing		Performing - Closely Monitored		Performing - Special Mention		Substandard		Doubtful		Loss		Total
	(dollars in thousands)
Senior mortgages	$	512,322		52.6	%	$	144,434	$	243,448	$	124,440	$	-	$	-	$	-	$	512,322
Mezzanine loans		453,693		46.5	%		254,337		170,039		29,317		-		-		-		453,693
Preferred equity		9,000		0.9	%		-		-		9,000		-		-		-		9,000
	$	975,015		100.0	%	$	398,771	$	413,487	$	162,757	$	-	$	-	$	-	$	975,015

(1) Excludes Loans held for sale, net.

Total Commercial Real Estate Held for Investment

	March 31, 2017			December 31, 2016
	(dollars in thousands)
Real estate held for investment, at amortized cost
Land	$	111,012		$	112,675
Buildings and improvements		330,120			335,945
Subtotal		441,132			448,620
Less: accumulated depreciation		(37,167	)		(34,221	)
Total real estate held for investment, at amortized cost, net		403,965			414,399
Equity in unconsolidated joint ventures		58,795			60,168
Investments in commercial real estate, net	$	462,760		$	474,567

Minimum Future Rentals on Non-cancelable Leases

Rental Income

	March 31, 2017
	(dollars in thousands)
2017 (remaining)	$	23,092
2018		28,353
2019		24,400
2020		19,706
2021		15,531
Later years		27,594
	$	138,676

Mortgage Loans Payable

Mortgage loans payable as of March 31, 2017and December 31, 2016, were as follows:

March 31, 2017
Property	Mortgage Carrying Value		Mortgage Principal		Interest Rate		Fixed/Floating Rate	Maturity Date	Priority
(dollars in thousands)
Joint Ventures	$	286,075	$	289,125		4.03% - 4.61%	Fixed	2024 and 2025	First liens
Tennessee		12,269		12,350		4.01%	Fixed	9/6/2019	First liens
Virginia		11,016		11,025		3.58%	Fixed	6/6/2019	First liens
Nevada (1)		2,347		2,347		L+200	Floating	9/29/2017	First liens
	$	311,707	$	314,847
(1) The mortgage agreement contained an interest rate swap with an expiration date of March 29, 2017. Effective on March 29, 2017, the interest rate swap expired and the Company extended the maturity date of the mortgage debt to September 29, 2017.

December 31, 2016
Property	Mortgage Carrying Value		Mortgage Principal		Interest Rate		Fixed/Floating Rate	Maturity Date	Priority
(dollars in thousands)
Joint Ventures	$	285,993	$	289,125		4.03% - 4.61%	Fixed	2024 and 2025	First liens
Tennessee		12,261		12,350		4.01%	Fixed	9/6/2019	First liens
Virginia		11,015		11,025		3.58%	Fixed	6/6/2019	First liens
Nevada		2,367		2,365		L+200	Floating (1)	3/29/2017	First liens
	$	311,636	$	314,865
(1) Includes a mortgage with a fixed rate via an interest rate swap (pay fixed 3.45%, receive floating rate of L+200).

Future Mortgage Loan Principal Payments

The following table details future mortgage loan principal payments as of March 31, 2017:

	Mortgage Loan Principal Payments
	(dollars in thousands)
2017 (remaining)	$	2,347
2018		-
2019		23,375
2020		-
2021		-
Later years		289,125
	$	314,847