
(1)		Unfunded commitments will primarily be funded to finance our borrowers’ construction or development of real estate-related assets, capital improvements of existing assets, or lease-related expenditures. These commitments will generally be funded over the term of each loan, subject in certain cases to an expiration date.
(2)		As of June 30, 2019, 99% of our loans by principal balance earned a floating rate of interest, primarily indexed to USD LIBOR, and 1% earned a fixed rate of interest. As of December 31, 2018, 98% of our loans by principal balance earned a floating rate of interest, primarily indexed to USD LIBOR, and 2% earned a fixed rate of interest. Cash coupon and all-in yield assume applicable floating benchmark rates as of June 30, 2019 and December 31, 2018, respectively, for weighted-average calculation. In addition to cash coupon, all-in yield includes the amortization of deferred origination and extension fees, loan origination costs, and purchase discounts, as well as the accrual of 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 June 30, 2019, 63% of our loans by principal balance were subject to yield maintenance or other prepayment restrictions and 37% were open to repayment by the borrower without penalty. As of December 31, 2018, 75% of our loans were subject to yield maintenance or other prepayment restrictions and 25% were open to repayment by the borrower without penalty.

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


	Principal Balance			Deferred Fees / Other Items (1)			Net Book Value
December 31, 2018	$	14,293,970		$	(102,770	)	$	14,191,200
Loan fundings		1,922,219			—			1,922,219
Loan repayments		(1,833,414	)		—			(1,833,414	)
Unrealized (loss) gain on foreign currency translation		(9,825	)		204			(9,621	)
Deferred fees and other items		—			(17,721	)		(17,721	)
Amortization of fees and other items		—			28,256			28,256

June 30, 2019	$	14,372,950		$	(92,031	)	$	14,280,919

____________

(1)

Other items primarily consist of purchase discounts or premiums, exit fees, and deferred origination expenses.

The tables below detail the property type and geographic distribution of the properties securing the loans in our portfolio ($ in thousands):


June 30, 2019
Property Type	Number of Loans	Net Book Value		Total Loan Exposure (1)(2)		Percentage of Portfolio
Office	54	$	7,205,141	$	7,258,497		48 %
Hotel	17		2,380,920		2,460,389		17
Multifamily	38		2,243,177		2,272,201		15
Industrial	5		685,128		688,981		5
Retail	3		381,509		386,617		3
Self-Storage	2		281,990		282,978		2
Condominium	1		228,817		230,258		2
Other	3		874,237		1,199,331		8

	123	$	14,280,919	$	14,779,252		100 %

Geographic Location	Number of Loans	Net Book Value		Total Loan Exposure (1)(2)		Percentage of Portfolio
United States
Northeast	27	$	3,999,237	$	4,025,533		28 %
West	26		2,953,508		2,995,900		20
Southeast	21		2,409,038		2,420,751		16
Midwest	10		1,109,007		1,115,860		8
Southwest	14		546,008		548,794		4
Northwest	4		175,039		175,770		1

Subtotal	102		11,191,837		11,282,608		77
International
United Kingdom	11		1,270,547		1,616,321		11
Spain	1		1,057,616		1,063,416		7
Australia	3		343,650		345,741		2
Germany	1		196,985		250,975		2
Canada	4		150,302		149,942		1
Belgium	1		69,982		70,249		—

Subtotal	21		3,089,082		3,496,644		23

Total	123	$	14,280,919	$	14,779,252		100 %
____________


(1)		In certain instances, we finance our loans through the non-recourse sale of a senior loan interest that is not included in our consolidated financial statements. See Note 2 for further discussion. Total loan exposure encompasses the entire loan we originated and financed, including $406.3 million of such non-consolidated senior interests as of June 30, 2019.
(2)		Excludes investment exposure to the $1.0 billion 2018 Single Asset Securitization. See Note 4 for details of the subordinated risk retention interest we own in the 2018 Single Asset Securitization.


December 31, 2018
Property Type	Number of Loans	Net Book Value		Total Loan Exposure (1)(2)		Percentage of Portfolio
Office	55	$	7,104,842	$	7,164,466		49 %
Hotel	18		2,591,565		2,673,763		18
Multifamily	34		2,193,699		2,206,740		15
Industrial	5		680,808		685,776		5
Retail	4		451,099		452,900		3
Condominium	4		304,545		368,104		2
Self-Storage	2		278,473		280,043		2
Other	3		586,169		909,052		6

	125	$	14,191,200	$	14,740,844		100%


Geographic Location	Number of Loans	Net Book Value		Total Loan Exposure (1)(2)		Percentage of Portfolio
United States
Northeast	32	$	4,322,114	$	4,359,938		31%
West	29		3,137,072		3,222,706		22
Southeast	19		2,258,033		2,271,664		15
Midwest	9		1,161,637		1,170,619		8
Southwest	13		478,665		481,745		3
Northwest	4		238,844		239,872		2

Subtotal	106		11,596,365		11,746,544		81
International
Spain	1		1,124,174		1,131,334		8
United Kingdom	7		754,299		1,094,663		7
Canada	5		316,268		313,229		2
Australia	3		310,372		312,893		2
Belgium	1		70,621		71,007		—
Germany	1		11,585		63,637		—
Netherlands	1		7,516		7,537		—

Subtotal	19		2,594,835		2,994,300		19

Total	125	$	14,191,200	$	14,740,844		100%
____________


(1)		In certain instances, we finance our loans through the non-recourse sale of a senior loan interest that is not included in our consolidated financial statements. See Note 2 for further discussion. Total loan exposure encompasses the entire loan we originated and financed, including $446.9 million of such non-consolidated senior interests as of December 31, 2018.
(2)		Excludes investment exposure to the $1.0 billion 2018 Single Asset Securitization. See Note 4 for details of the subordinated risk retention interest we own in the 2018 Single Asset Securitization.

Loan Risk Ratings

As further described in Note 2, our Manager evaluates our loan portfolio on a quarterly basis. In conjunction with our quarterly loan portfolio review, our Manager assesses the risk factors of each loan, and assigns a risk rating based on several factors. Factors considered in the assessment include, but are not limited to, risk of loss, current LTV, debt yield, collateral performance, structure, exit plan, and sponsorship. Loans are rated “1” (less risk) through “5” (greater risk), which ratings are defined in Note 2.

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


June 30, 2019							December 31, 2018
Risk Rating		Number of Loans	Net Book Value		Total Loan Exposure (1)(2)		Number of Loans	Net Book Value		Total Loan Exposure (1)(2)
	1	4	$	275,427	$	275,806	2	$	181,366	$	182,740
	2	38		4,208,307		4,235,448	38		3,860,432		3,950,025
	3	78		9,630,494		10,100,685	85		10,149,402		10,608,079
	4	3		166,691		167,313	—		—		—
	5	—		—		—	—		—		—

		123	$	14,280,919	$	14,779,252	125	$	14,191,200	$	14,740,844

____________


	(1)			In certain instances, we finance our loans through the non-recourse sale of a senior loan interest that is not included in our consolidated financial statements. See Note 2 for further discussion. Total loan exposure encompasses the entire loan we originated and financed, including $ 406.3 million and $ 446.9 million of such non-consolidated senior interests as of June 30, 2019 and December 31, 2018, respectively.
	(2)			Excludes investment exposure to the $ 1.0 billion 2018 Single Asset Securitization. See Note 4 for details of the subordinated risk retention interest we own in the 2018 Single Asset Securitization.

The weighted-average risk rating of our total loan exposure was 2.7 as of both June 30, 2019 and December 31, 2018. We did not have any impaired loans, nonaccrual loans, or loans in maturity default as of June 30, 2019 or December 31, 2018.

Multifamily Joint Venture

As discussed in Note 2, we entered into a Multifamily Joint Venture in April 2017. As of June 30, 2019 and December 31, 2018, our Multifamily Joint Venture held $505.0 million and $334.6 million of loans, respectively, which are included in the loan disclosures above. Refer to Note 2 for additional discussion of our Multifamily Joint Venture.