Loans Receivable (Tables)

12 Months Ended

Dec. 31, 2014

Receivables [Abstract]

Overall Statistics for Loans Receivable Portfolio

The following table details overall statistics for our loans receivable portfolio ($ in thousands):

	December 31, 2014			December 31, 2013
Number of loans		60			31
Principal balance	$	4,462,897		$	2,077,227
Net book value	$	4,428,500		$	2,047,223
Unfunded loan commitments(1)	$	513,229		$	164,283
Weighted-average cash coupon(2)		L+4.36	%		L+4.64	%
Weighted-average all-in yield(2)		L+4.81	%		L+5.26	%
Weighted-average maximum maturity (years)(3)		3.9			4.1

(1) Unfunded commitments will primarily be funded to finance property improvements or lease-related expenditures by the borrowers. These future commitments will expire over the next four years.

(2) As of December 31, 2014, our floating rate loans and related liabilities were indexed to the various benchmark rates relevant in each case in terms of currency and payment frequency. Therefore the net exposure to each benchmark rate is in direct proportion to our net assets indexed to that rate. In addition, 14% of our loans earned interest based on LIBOR floors, with an average floor of 0.31%, as of December 31, 2014. In addition to cash coupon, all-in yield includes the amortization of deferred origination fees, loan origination costs, and accrual of both extension and exit fees.

(3) Maximum maturity assumes all extension options are exercised by the borrower, however our loans may be repaid prior to such date. As of December 31, 2014, 85% of our loans are subject to yield maintenance, lock-out provisions, or other prepayment restrictions and 15% are open to repayment by the borrower.

Activity Relating to Loans Receivable

Activity relating to our loans receivable was ($ in thousands):

	Principal Balance			Deferred Fees and Other Items			Net Book Value
December 31, 2013	$	2,077,227		$	(30,004	)	$	2,047,223
Loan fundings		3,067,263			—			3,067,263
Loan repayments and sales		(591,246	)		—			(591,246	)
Unrealized loss on foreign currency translation		(52,801	)		725			(52,076	)
Deferred origination fees and expenses		—			(35,449	)		(35,449	)
Amortization of deferred fees and expenses		—			19,785			19,785
Realized loan losses(1)		(10,546	)		10,546			—
Reclassification to other assets		(27,000	)		—			(27,000	)
December 31, 2014	$	4,462,897		$	(34,397	)	$	4,428,500

(1) Includes a loan loss reserve of $10.5 million as of December 31, 2013, related to one loan in the CT Legacy Portfolio segment, owned by CT CDO I, with a principal balance of $10.5 million. This loan was subsequently written off in 2014 resulting in an aggregate loan loss reserve of zero as of December 31, 2014.

Types of Loans in Loan Portfolio, as well as Property Type and Geographic Distribution of Properties Securing these Loans

The tables below detail the types of loans in our loan portfolio, as well as the property type and geographic distribution of the properties securing these loans ($ in thousands):

	December 31, 2014					December 31, 2013
Asset Type	Net Book Value		Percentage			Net Book Value		Percentage
Senior loans(1)	$	4,340,586		98	%	$	1,800,329		88	%
Subordinate loans(2)		87,914		2			246,894		12
	$	4,428,500		100	%	$	2,047,223		100	%

Property Type	Net Book Value		Percentage			Net Book Value		Percentage
Office	$	1,878,605		42	%	$	864,666		42	%
Hotel		1,267,486		29			390,492		19
Multifamily		426,094		10			341,819		17
Condominium		315,686		7			275,645		13
Retail		270,812		6			43,115		2
Other		269,817		6			131,486		7
	$	4,428,500		100	%	$	2,047,223		100	%

Geographic Location	Net Book Value		Percentage			Net Book Value		Percentage
United States
Northeast	$	1,383,258		31	%	$	828,571		40	%
Southeast		657,484		15			243,798		12
West		628,275		14			469,262		23
Southwest		405,741		9			216,429		11
Midwest		335,406		8			85,708		4
Northwest		138,796		3			166,207		8
Subtotal		3,548,960		80			2,009,975		98
International
United Kingdom		622,692		14			37,248		2
Canada		137,024		3			—		—
Spain		86,289		2			—		—
Netherlands		33,535		1			—		—
Subtotal		879,540		20			37,248		2
Total	$	4,428,500		100	%	$	2,047,223		100	%

(1) Includes senior mortgages and similar credit quality loans, including related contiguous subordinate loans, and pari passu participations in senior mortgage loans.

(2) Includes subordinate interests in mortgages and mezzanine loans.

Principal Balance and Net Book Value of Loans Receivable Based on Internal Risk Ratings

The following table allocates the principal balance and net book value of our loans receivable based on our internal risk ratings as of December 31, 2014 ($ in thousands):

	Senior Loans(1)						Subordinate Loans(2)
Risk Rating	Number of Loans		Principal Balance		Net Book Value		Number of Loans		Principal Balance		Net Book Value		Total Net Book Value
1 – 3		58	$	4,374,532	$	4,340,586		2	$	88,365	$	87,914	$	4,428,500
4 – 5		—		—		—		—		—		—		—
		58	$	4,374,532	$	4,340,586		2	$	88,365	$	87,914	$	4,428,500

(1) Includes senior mortgages and similar credit quality loans, including related contiguous subordinate loans, and pari passu participations in senior mortgage loans.

(2) Includes subordinate interests in mortgages and mezzanine loans.

The following table allocates the principal balance and net book value of our loans receivable based on our internal risk ratings as of December 31, 2013 ($ in thousands):

	Senior Loans(1)						Subordinate Loans(2)
Risk Rating	Number of Loans		Principal Balance		Net Book Value		Number of Loans		Principal Balance		Net Book Value		Total Net Book Value
1 – 3		26	$	1,811,513	$	1,800,329		3	$	227,350	$	219,894	$	2,020,223
4 – 5		—		—		—		2		37,548		27,000		27,000
		26	$	1,811,513	$	1,800,329		5	$	264,898	$	246,894	$	2,047,223

(1) Includes senior mortgages and similar credit quality loans, including related contiguous subordinate loans, and pari passu participations in senior mortgage loans.

(2) Includes subordinate interests in mortgages and mezzanine loans.