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Fair Values (Tables)

12 Months Ended

Dec. 31, 2014

Assets Measured and Reported at Fair Value on Recurring Basis

The following table summarizes our assets measured and reported at fair value on a recurring basis ($ in thousands):


	Level 1		Level 2		Level 3		Fair Value
December 31, 2014
Other assets, at fair value⁽¹⁾	$	—	$	2,648	$	47,507	$	50,155
December 31, 2013
Other assets, at fair value⁽¹⁾	$	—	$	1,944	$	54,461	$	56,405

(1)

Other assets include loans, securities, equity investments, and other receivables carried at fair value.

Reconciliation of Beginning and Ending Balances of Assets Measured at Fair Value on Recurring Basis Using Level 3 Inputs

The following table reconciles the beginning and ending balances of assets measured at fair value on a recurring basis using Level 3 inputs ($ in thousands):


	2014 Other Assets			2013
	2014 Other Assets			Loans Held-for-Sale, net			Other Assets			Investment in CT Legacy Assets
January 1,	$	54,461		$	—		$	—		$	132,000
Consolidation of CT Legacy Partners		—			—			164,780			(132,000	)
Transfer from loans receivable, at fair value		—			2,000			—			—
Proceeds from investments		(20,231	)		(3,259	)		(118,635	)		—
Adjustments to fair value included in earnings
Gain on investments at fair value		13,277			—			7,332			—
Valuation allowance on loans held-for-sale		—			1,259			—			—
Deferred interest		—			—			984			—

December 31,	$	47,507		$	—		$	54,461		$	—

Schedule of Range of Key Assumptions for Each Type of Loans Receivable

The following table lists the range of key assumptions for each type of loans receivable as of December 31, 2014 and December 31, 2013 ($ in millions):


	Discount Rate			Recovery Percentage⁽¹⁾			Fair Value as of
Collateral Type	Discount Rate			Recovery Percentage⁽¹⁾			December 31, 2014		December 31, 2013
Hotel		(2	)		100	%	$	15.0	$	15.0
Office		(3	)		100	%		4.0		25.7

							$	19.0	$	40.7

(1)

Represents the proportion of the principal expected to be collected relative to the loan balances as of December 31, 2014 and 2013, excluding loans for which there is no expectation of future cash flows.

(2)

The discount rate used to value our hotel loan portfolio was 7% as of December 31, 2014 and 2013. A 100 bp discount rate increase would result in a decrease in fair value of 0.3% and 1.4% as of December 31, 2014 and 2013, respectively.

(3)

The discount rates used to value our office loan portfolio was 15% as of December 31, 2014 and ranged from 6% to 15% as of December 31, 2013. A 100 bp discount rate increase would result in a decrease in fair value of 1.1% and 0.3% as of December 31, 2014 and 2013, respectively.

Schedule of Details of Carrying Amount, Face Amount, and Fair Value of Financial Instruments

The following table details the carrying amount, face amount, and fair value of the financial instruments described in Note 2 that are not reported in the statement of financial position at fair value ($ in thousands):


	December 31, 2014						December 31, 2013
	Carrying Amount		Face Amount		Fair Value		Carrying Amount		Face Amount		Fair Value
Financial assets
Cash and cash equivalents	$	51,810	$	51,810	$	51,810	$	52,342	$	52,342	$	52,342
Restricted cash		11,591		11,591		11,591		10,096		10,096		10,096
Loans receivable, net		4,428,500		4,462,897		4,462,897		2,047,223		2,077,227		2,058,699

Financial liabilities
Revolving repurchase facilities		2,040,783		2,040,783		2,040,783		863,622		863,622		863,622
Asset-specific repurchase agreements		324,553		324,553		324,553		245,731		245,731		245,731
Loan participations sold		499,433		499,433		499,433		90,000		90,000		90,000
Convertible notes, net		161,853		172,500		181,341		159,524		172,500		181,772

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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- Definition

Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities.

+ References+ Details