INVESTMENTS IN LOANS (Tables)

6 Months Ended

Jun. 30, 2016

The following table summarizes our investments in commercial mortgage loans, mezzanine loans, and preferred equity interests as of June 30, 2016:

	Unpaid Principal Balance			Unamortized (Discounts) Premiums			Carrying Amount			Number of Loans		Weighted- Average Coupon (1)			Range of Maturity Dates (2)
Commercial Real Estate (CRE)
Commercial mortgage loans (3)	$	1,315,301			(952	)	$	1,314,349			109		5.7	%	Jul. 2016 to Jan. 2029
Mezzanine loans		142,582			(218	)		142,364			42		9.6	%	Sep. 2016 to Jan. 2029
Preferred equity interests		38,938			(1	)		38,937			15		7.5	%	Sep. 2016 to Aug. 2025
Total CRE		1,496,821			(1,171	)		1,495,650			166		6.1	%
Deferred fees, net		(307	)					(307	)
Total	$	1,496,514			(1,171	)	$	1,495,343

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

(2)	Does not include the maturity dates of seven loans all of which had maturity dates prior to June 30, 2016 and six of which have been identified as impaired. Three of these loans are 90 days or more past due, two are current and two are in the process of being restructured.

(3)	Commercial mortgage loans includes five conduit loans with an unpaid principal balance and carrying amount of $41,455, a weighted-average coupon of 4.8% and maturity dates ranging from June 2025 through July 2026. 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, 2015:

	Unpaid Principal Balance			Unamortized (Discounts) Premiums			Carrying Amount			Number of Loans		Weighted- Average Coupon (1)			Range of Maturity Dates (2)
Commercial Real Estate (CRE)
Commercial mortgage loans (3)	$	1,427,328		$	(1,049	)	$	1,426,279			124		5.2	%	Mar. 2016 to Jan. 2029
Mezzanine loans		169,556			(218	)		169,338			57		10.0	%	Jan. 2016 to May 2025
Preferred equity interests		30,237			(1	)		30,236			7		6.9	%	Feb. 2016 to Aug. 2025
Total CRE		1,627,121			(1,268	)		1,625,853			188		6.1	%
Deferred fees, net		(2,270	)		—			(2,270	)
Total	$	1,624,851		$	(1,268	)	$	1,623,583

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

(2)	Does not include the maturity dates of three mezzanine loans that were 90 days or more past due which had contractual maturity dates prior to December 31, 2015

(3)	Commercial mortgage loans includes six conduit loans with an unpaid principal balance and carrying amount of $49,239, a weighted-average coupon of 4.8% and maturity dates ranging from December 2020 through January 2026. 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, 2016 and December 31, 2015:

	As of June 30, 2016
Delinquency Status	Current		30 to 59 days		60 to 89 days (1)		90 days or more		In foreclosure or bankruptcy proceedings (2)		Total		Non-Accrual (3)
Commercial mortgage loans	$	1,309,101	$	6,200	$	74,800	$	—	$	—	$	1,315,301	$	17,235
Mezzanine loans		65,620		—		—		1,162		1,000		142,582	$	10,553
Preferred equity interests		38,938		—		—		—		—		38,938	$	7,914
Total	$	1,413,659	$	6,200	$	74,800	$	1,162	$	1,000	$	1,496,821	$	35,702

(1)	Subsequent to June 30, 2016, this $74,800 loan became 90 days delinquent and was placed on non-accrual status.

(2)	This loan was on non-accrual due to uncertainty over whether we will fully collect principal and interest.

(3)	Includes six loans that were current, but are on non-accrual due to uncertainty over whether we will fully collect principal and interest.

	As of December 31, 2015
Delinquency Status	Current		30 to 59 days		60 to 89 days		90 days or more		In foreclosure or bankruptcy proceedings (1)		Total		Non-Accrual (2)
Commercial mortgage loans	$	1,427,328	$	—	$	—	$	—	$	—	$	1,427,328	$	15,645
Mezzanine loans		167,145		—		—		1,163		1,248		169,556		12,346
Preferred equity interests		30,237		—		—		—		—		30,237		7,946
Total	$	1,624,710	$	—	$	—	$	1,163	$	1,248	$	1,627,121	$	35,937

(1)	These loans were on non-accrual due to uncertainty over whether we will fully collect principal and interest.

(2)	Includes six loans that were current in accordance with their terms, but are on non-accrual due to uncertainty over whether we will fully collect principal and interest.

Investment in Loans by Credit Risk Category

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

	As of June 30, 2016
Credit Status	Commercial Mortgage Loans		Mezzanine Loans		Preferred Equity		Total
Satisfactory	$	1,223,266	$	113,529	$	31,024	$	1,367,819
Watchlist / Impaired		92,035		29,053		7,914		129,002
Total	$	1,315,301	$	142,582	$	38,938	$	1,496,821

	As of December 31, 2015
Credit Status	Commercial Mortgage Loans		Mezzanine Loans		Preferred Equity		Total
Satisfactory	$	1,336,883	$	135,710	$	22,291		$	1,494,884
Watchlist / Impaired		90,445		33,846		7,946			132,237
Total	$	1,427,328	$	169,556	$	30,237		$	1,627,121

Roll-Forwards of Allowance for Loan Losses for Commercial Mortgage Loans, Mezzanine Loans and Preferred Equity Interests

The following tables provide roll-forwards of our allowance for loan losses for our commercial mortgage loans, mezzanine loans and preferred equity interests for the three months ended June 30, 2016 and 2015:

	For the Three Months Ended June 30, 2016
	Commercial Mortgage Loans		Mezzanine Loans			Preferred Equity		Total
Beginning balance	$	3,328	$	12,040		$	2,797	$	18,165
Provision for loan losses		1,069		93			182		1,344
Charge-offs, net of recoveries		—		(1,272	)		—		(1,272	)
Ending balance	$	4,397	$	10,861		$	2,979	$	18,237

	For the Three Months Ended June 30, 2015
	Commercial Mortgage Loans		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

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 months ended June 30, 2016 and 2015:

	For the Six Months Ended June 30, 2016
	Commercial Mortgage Loans		Mezzanine Loans			Preferred Equity		Total
Beginning balance	$	3,154	$	12,139		$	1,804	$	17,097
Provision for loan losses		1,243		251			1,175		2,669
Charge-offs, net of recoveries		—		(1,529	)		—		(1,529	)
Ending balance	$	4,397	$	10,861		$	2,979	$	18,237

	For the Six Months Ended June 30, 2015
	Commercial Mortgage Loans		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

Loans Considered to be Impaired

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

	As of June 30, 2016
Watchlist/Impaired Loans	Commercial Mortgage Loans		Mezzanine Loans		Preferred Equity		Total
Watchlist/Impaired loans expecting full recovery	$	74,800	$	—	$	—	$	74,800
Watchlist/Impaired loans with reserves		17,235		29,053		7,914		54,202
Total Watchlist/Impaired Loans (1)	$	92,035	$	29,053	$	7,914	$	129,002
Allowance for loan losses	$	4,397	$	10,861	$	2,979	$	18,237

(1)	As of June 30, 2016, there was no unpaid principal relating to previously identified TDRs that are on accrual status.

	As of December 31, 2015
Watchlist/Impaired Loans	Commercial Mortgage Loans		Mezzanine Loans		Preferred Equity		Total
Watchlist/Impaired loans expecting full recovery	$	74,800	$	3,000	$	—	$	77,800
Watchlist/Impaired loans with reserves		15,645		30,846		7,946		54,437
Total Watchlist/Impaired Loans (1)	$	90,445	$	33,846	$	7,946	$	132,237
Allowance for loan losses	$	3,154	$	12,139	$	1,804	$	17,097

(1)	As of December 31, 2015, there was no unpaid principal relating to previously identified TDRs that are on accrual status.