INVESTMENTS IN LOANS (Tables)

6 Months Ended

Jun. 30, 2015

Investments in Loans

The following table summarizes our investments in commercial mortgages, mezzanine loans, and preferred equity interests as of June 30, 2015:

	Unpaid Principal Balance		Unamortized (Discounts) Premiums			Carrying Amount		Number of Loans		Weighted- Average Coupon (1)			Range of Maturity Dates
Commercial Real Estate (CRE)
Commercial mortgages (2)	$	1,282,154	$	(14,428	)	$	1,267,726		108		5.3	%	Sep. 2015 to Jan. 2029
Mezzanine loans		202,694		(1,024	)		201,670		62		9.8	%	Jul. 2015 to May 2025
Preferred equity interests		39,311		(2,335	)		36,976		9		7.3	%	Feb. 2016 to Aug. 2033
Total CRE		1,524,159		(17,787	)		1,506,372		179		6.0	%
Deferred fees, net		170		—			170
Total	$	1,524,329	$	(17,787	)	$	1,506,542

(1) Weighted-average coupon is calculated on the unpaid principal balance, which does not necessarily correspond to the carrying amount.

(2) Commercial mortgages includes eleven conduit loans with an unpaid principal balance and carrying amount of $114,048 a weighted-average coupon of 4.3% and maturity dates ranging from November 2022 through July 2025. These commercial mortgages are accounted for as loans held for sale.

The following table summarizes our investments in commercial mortgages, mezzanine loans, other loans and preferred equity interests as of December 31, 2014:

	Unpaid Principal Balance			Unamortized (Discounts) Premiums			Carrying Amount			Number of Loans		Weighted- Average Coupon (1)			Range of Maturity Dates
Commercial Real Estate (CRE)
Commercial mortgages (2)	$	1,148,290		$	(14,519	)	$	1,133,771			95		5.9	%	Jan. 2015 to Jan. 2025
Mezzanine loans		226,105			(1,602	)		224,503			74		9.8	%	Mar. 2015 to Jan. 2029
Preferred equity interests		34,859			(1	)		34,858			9		7.1	%	Feb. 2016 to Aug. 2025
Total CRE		1,409,254			(16,122	)		1,393,132			178		6.5	%
Deferred fees, net		(696	)		—			(696	)
Total	$	1,408,558		$	(16,122	)	$	1,392,436

(1) Weighted-average coupon is calculated on the unpaid principal amount of the underlying instruments, which does not necessarily correspond to the carrying amount.

(2) Commercial mortgages includes 11 conduit loans with an unpaid principal balance and carrying amount of $93,925, a weighted-average coupon of 4.6% and maturity dates ranging from November 2019 through January 2025. These commercial mortgages are accounted for as loans held for sale.

Delinquency Statistics of Commercial Real Estate Loan

The following table summarizes the delinquency statistics of our commercial real estate loans as of June 30, 2015 and December 31, 2014:

	As of June 30, 2015
Delinquency Status	Commercial Mortgages		Mezzanine Loans		Preferred Equity		Total
Current	$	1,282,154	$	181,493	$	35,661	$	1,499,308
30 to 59 days		—		—		—		—
60 to 89 days		—		—		—		—
90 days or more		—		19,953		3,650		23,603
In foreclosure or bankruptcy proceedings		—		1,248		—		1,248
Total	$	1,282,154	$	202,694	$	39,311	$	1,524,159

	As of December 31, 2014
Delinquency Status	Commercial Mortgages		Mezzanine Loans		Preferred Equity		Total
Current	$	1,148,290	$	202,919	$	31,209	$	1,382,418
30 to 59 days		—		—		—		—
60 to 89 days		—		1,555		—		1,555
90 days or more		—		19,953		3,650		23,603
In foreclosure or bankruptcy proceedings		—		1,678		—		1,678
Total	$	1,148,290	$	226,105	$	34,859	$	1,409,254

Investment in Loans by Credit Risk Category

we have classified our investment in loans by credit risk category as follows:

	As of June 30, 2015
Credit Status	Commercial Mortgages		Mezzanine Loans		Preferred Equity		Total
Satisfactory	$	1,247,234	$	154,493	$	31,365	$	1,433,092
Watchlist/Impaired		34,920		48,201		7,946		91,067
Total	$	1,282,154	$	202,694	$	39,311	$	1,524,159

	As of December 31, 2014
Credit Status	Commercial Mortgages		Mezzanine Loans		Preferred Equity		Total
Satisfactory	$	1,125,370	$	175,915	$	26,849	$	1,328,134
Watchlist/Impaired		22,920		50,190		8,010		81,120
Total	$	1,148,290	$	226,105	$	34,859	$	1,409,254

Roll-Forwards of Allowance for Losses for Commercial Mortgages Mezzanine Loans, and Other Loans

The following tables provide roll-forwards of our allowance for loan losses for our commercial mortgages, mezzanine loans and preferred equity interests for the three-month periods ended June 30, 2015 and 2014:

	For the Three-Month Period Ended June 30, 2015
	Commercial Mortgages		Mezzanine Loans			Preferred Equity		Total
Beginning balance	$	—	$	9,471		$	1,326	$	10,797
Provision for loan losses		—		2,000			—	$	2,000
Charge-offs, net of recoveries		—		(1	)		—	$	(1	)
Ending balance	$	—	$	11,470		$	1,326	$	12,796

	For the Three-Month Period Ended June 30, 2014
	Commercial Mortgages		Mezzanine Loans		Preferred Equity		Total
Beginning balance	$	—	$	12,960	$	1,319	$	14,279
Provision for loan losses		—		1,000		—		1,000
Charge-offs, net of recoveries		—		57		—		57
Ending balance	$	—	$	14,017	$	1,319	$	15,336

The following tables provide roll-forwards of our allowance for loan losses for our commercial mortgages, mezzanine loans and preferred equity interests for the six-month periods ended June 30, 2015 and 2014:

	For the Six-Month Period Ended June 30, 2015
	Commercial Mortgages		Mezzanine Loans			Preferred Equity		Total
Beginning balance	$	—	$	7,892		$	1,326	$	9,218
Provision for loan losses		—		4,000			—	$	4,000
Charge-offs, net of recoveries		—		(422	)		—	$	(422	)
Ending balance	$	—	$	11,470		$	1,326	$	12,796

	For the Six-Month Period Ended June 30, 2014
	Commercial Mortgages		Mezzanine Loans			Preferred Equity		Total
Beginning balance	$	—	$	21,636		$	1,319	$	22,955
Provision for loan losses		—		2,000			—		2,000
Charge-offs, net of recoveries		—		(9,619	)		—		(9,619	)
Ending balance	$	—	$	14,017		$	1,319	$	15,336

Loans on Watchlist or Considered to be Impaired

Information related to those loans on our watchlist or considered to be impaired was as follows:

	As of June 30, 2015
Watchlist/Impaired Loans	Commercial Mortgages		Mezzanine Loans		Preferred Equity		Total
Watchlist/Impaired loans expecting full recovery	$	34,920	$	8,500	$	4,296	$	47,716
Watchlist/Impaired loans with reserves		—		39,701		3,650		43,351
Total Watchlist/Impaired Loans(1)	$	34,920	$	48,201	$	7,946	$	91,067
Allowance for losses	$	—	$	11,470	$	1,326	$	12,796

(1) As of June 30, 2015, this includes $5,500 of unpaid principal relating to previously identified troubled debt restructurings (TDRs) that are on accrual status.

	As of December 31, 2014
Watchlist/Impaired Loans	Commercial Mortgages		Mezzanine Loans		Preferred Equity		Total
Watchlist/Impaired loans expecting full recovery	$	22,920	$	40,559	$	4,360	$	67,839
Watchlist/Impaired loans with reserves		—		9,631		3,650		13,281
Total Watchlist/Impaired Loans(1)	$	22,920	$	50,190	$	8,010	$	81,120
Allowance for losses	$	—	$	7,892	$	1,326	$	9,218

(1) As of December 31, 2014, this includes $5,500 of unpaid principal relating to previously identified TDRs that are on accrual status.