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Loans Receivable, Net
 9 Months Ended
Sep. 30, 2022
Receivables [Abstract]  
Loans Receivable, Net LOANS RECEIVABLE, NET
The following table details overall statistics for our loans receivable portfolio ($ in thousands):

 September 30, 2022December 31, 2021
Number of loans205 188 
Principal balance$24,576,601 $22,156,437 
Net book value$24,278,702 $21,878,338 
Unfunded loan commitments(1)
$4,126,886 $4,180,128 
Weighted-average cash coupon(2)
+ 3.30 %+ 3.19 %
Weighted-average all-in yield(2)
+ 3.67 %+ 3.52 %
Weighted-average maximum maturity (years)(3)
3.33.4
(1)Unfunded commitments will primarily be funded to finance our borrowers’ construction or development of real estate-related assets, capital improvements of existing assets, or lease-related expenditures. These commitments will generally be funded over the term of each loan, subject in certain cases to an expiration date.
(2)The weighted-average cash coupon and all-in yield are expressed as a spread over the relevant floating benchmark rates, which include USD LIBOR, SOFR, SONIA, GBP LIBOR, EURIBOR, and other indices, as applicable to each loan. As of September 30, 2022, substantially all of our loans by principal balance earned a floating rate of interest, primarily indexed to USD LIBOR. As of December 31, 2021, 99.5% of our loans by principal balance earned a floating rate of interest, primarily indexed to USD LIBOR. The other 0.5% of our loans earned a fixed rate of interest. In addition to cash coupon, all-in yield includes the amortization of deferred origination and extension fees, loan origination costs, and purchase discounts, as well as the accrual of exit fees. Excludes one loan accounted for under the cost-recovery method.
(3)Maximum maturity assumes all extension options are exercised by the borrower, however our loans may be repaid prior to such date. As of September 30, 2022, 61% of our loans by principal balance were subject to yield maintenance or other prepayment restrictions and 39% were open to repayment by the borrower without penalty. As of December 31, 2021, 56% of our loans by principal balance were subject to yield maintenance or other prepayment restrictions and 44% were open to repayment by the borrower without penalty.
The following table details the index rate floors for our loans receivable portfolio as of September 30, 2022 ($ in thousands):

 Loans Receivable Principal Balance
Index Rate FloorsUSD
Non-USD(1)
Total
Fixed Rate$37,500 $— $37,500 
0.00% or no floor(2)
3,759,1117,072,36410,831,475
0.01% to 1.00% floor9,425,418661,89910,087,317
1.01% to 1.50% floor2,458,65555,0402,513,695
1.51% to 2.00% floor692,036—692,036
2.01% or more floor366,12948,449414,578
Total(3)
$16,738,849 $7,837,752 $24,576,601 
(1)Includes Euro, British Pound Sterling, Swedish Krona, Australian Dollar, Canadian Dollar, Swiss Franc, and Danish Krone currencies.
(2)Includes a $286.3 million loan accounted for under the cost-recovery method.
(3)As of September 30, 2022, the weighted-average index rate floor of our loan portfolio was 0.34%. Excluding 0.0% index rate floors and loans with no floor, the weighted-average index rate floor was 0.60%.
Activity relating to our loans receivable portfolio was as follows ($ in thousands):
 
Principal
Balance
Deferred Fees /
Other Items(1)
Net Book
Value
Loans Receivable, as of December 31, 2021
$22,156,437 $(153,420)$22,003,017 
Loan fundings6,210,880—6,210,880
Loan repayments and sales(2,520,175)—(2,520,175)
Unrealized (loss) gain on foreign currency translation(1,270,541)9,733(1,260,808)
Deferred fees and other items—(67,950)(67,950)
Amortization of fees and other items—58,16958,169
Loans Receivable, as of September 30, 2022
$24,576,601 $(153,468)$24,423,133 
CECL reserve(144,431)
Loans Receivable, net, as of September 30, 2022
$24,278,702 
(1)Other items primarily consist of purchase and sale discounts or premiums, exit fees, and deferred origination expenses.
The tables below detail the property type and geographic distribution of the properties securing the loans in our portfolio ($ in thousands):
September 30, 2022
Property Type
Number of
 Loans
Net
Book Value
Total Loan
 Exposure(1)
Percentage of
 Portfolio
Office67$9,609,121 $10,697,145 41%
Multifamily816,210,7306,313,31924
Hospitality304,840,0224,871,38419
Industrial101,659,1621,752,4187
Retail91,093,7581,134,3374
Other81,010,3401,367,4035
Total loans receivable205$24,423,133 $26,136,006 100%
CECL reserve(144,431)
Loans receivable, net$24,278,702 
Geographic Location
Number of
 Loans
Net
Book Value
Total Loan
 Exposure(1)
Percentage of
 Portfolio
United States    
Sunbelt76$6,439,282 $6,688,040 26%
Northeast385,365,3715,694,07522
West343,516,5624,484,04417
Midwest101,005,3151,110,1614
Northwest6317,617321,9371
Subtotal16416,644,14718,298,25770
International
United Kingdom223,122,2273,153,44912
Australia61,362,1111,373,9335
Spain41,147,0641,151,5215
Ireland31,117,5261,122,9904
Sweden1444,948448,2642
Canada148,39648,449—
Other Europe4536,714539,1432
Subtotal417,778,9867,837,74930
Total loans receivable205$24,423,133 $26,136,006 100%
CECL reserve(144,431)
Loans receivable, net$24,278,702 
(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 $1.6 billion of such non-consolidated senior interests as of September 30, 2022.
December 31, 2021
Property Type
Number of
 Loans
Net
Book Value
Total Loan
 Exposure(1)(2)
Percentage of
 Portfolio
Office65$9,473,039 $10,425,026 44%
Multifamily755,721,2605,771,51724
Hospitality253,427,2453,540,39115
Industrial61,102,4521,185,6065
Retail8871,241909,9704
Other91,407,7801,836,6018
Total loans receivable188$22,003,017 $23,669,111 100%
CECL reserve(124,679)
Loans receivable, net$21,878,338 
Geographic Location
Number of
 Loans
Net
Book Value
Total Loan
 Exposure(1)(2)
Percentage of
 Portfolio
United States    
Sunbelt71$5,907,230 $6,206,216 26%
Northeast374,615,0764,934,29521
West333,520,9424,199,20818
Midwest101,063,2021,113,9595
Northwest5251,121252,7001
Subtotal15615,357,57116,706,37871
International
United Kingdom172,342,1462,598,03311
Spain41,374,3641,380,7636
Ireland11,210,3751,216,8645
Sweden1546,319551,1492
Australia4504,668509,8852
Canada268,55868,478—
Other Europe3599,016637,5613
Subtotal326,645,4466,962,73329
Total loans receivable188$22,003,017 $23,669,111 100%
CECL reserve(124,679)
Loans receivable, net$21,878,338 
(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 $1.5 billion of such non-consolidated senior interests as of December 31, 2021.
(2)Excludes investment exposure to the $379.3 million 2018 Single Asset Securitization. See Note 4 for details of the subordinate position we own in the 2018 Single Asset Securitization.

Loan Risk Ratings
As further described in Note 2, we evaluate our loan portfolio on a quarterly basis. In conjunction with our quarterly loan portfolio review, we assess the risk factors of each loan, and assign 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):
September 30, 2022December 31, 2021
Risk
 Rating
Number
 of Loans
Net
Book Value
Total Loan
 Exposure(1)
Number
 of Loans
Net
Book Value
Total Loan
 Exposure(1)(2)
112$1,059,274 $1,081,961 8$642,776 $645,854 
2426,323,2627,008,246285,200,5335,515,250
313714,070,84915,072,20614113,604,02714,944,045
4132,684,9392,687,284102,270,8722,277,653
51284,809286,3091284,809286,309
Total loans receivable205$24,423,133 $26,136,006 188$22,003,017 $23,669,111 
CECL reserve(144,431)(124,679)
Loans receivable, net$24,278,702 $21,878,338 
(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 $1.6 billion and $1.5 billion of such non-consolidated senior interests as of September 30, 2022 and December 31, 2021, respectively.
(2)Excludes investment exposure to the 2018 Single Asset Securitization of $379.3 million as of December 31, 2021. See Note 4 for details of the subordinate position we own in the 2018 Single Asset Securitization.
The weighted-average risk rating of our total loan exposure was 2.8 as of both September 30, 2022 and December 31, 2021.
Current Expected Credit Loss Reserve
The CECL reserve required under GAAP reflects our current estimate of potential credit losses related to the loans and debt securities included in our consolidated balance sheets. Refer to Note 2 for further discussion of our CECL reserve. The following table presents the activity in our loans receivable CECL reserve by investment pool for the three and nine months ended September 30, 2022 and 2021 ($ in thousands):
 
U.S. Loans(1)
Non-U.S.
 Loans
Unique
 Loans
Impaired
 Loans
Total
     
CECL reserve as of December 31, 2021
$26,885 $10,263 $32,657 $54,874 $124,679 
Decrease in CECL reserve(644)(54)(1,760)—(2,458)
CECL reserve as of March 31, 2022
$26,241 $10,209 $30,897 $54,874 $122,221 
Increase in CECL reserve7,0701,1352,598—10,803 
CECL reserve as of June 30, 2022
$33,311 $11,344 $33,495 $54,874 $133,024 
Increase in CECL reserve8,280453,082—11,407
CECL reserve as of September 30, 2022
$41,591 $11,389 $36,577 $54,874 $144,431 
CECL reserve as of December 31, 2020
$42,995 $27,734 $33,159 $69,661 $173,549 
Increase (decrease) in CECL reserve1,539 (3,134)146 — (1,449)
CECL reserve as of March 31, 2021
$44,534 $24,600 $33,305 $69,661 $172,100 
Decrease in CECL reserve(26,861)(15,771)(523)— (43,155)
CECL reserve as of June 30, 2021
$17,673 $8,829 $32,782 $69,661 $128,945 
Increase (decrease) in CECL reserve3,253 (283)(1,527)— 1,443 
CECL reserve as of September 30, 2021
$20,926 $8,546 $31,255 $69,661 $130,388 
(1) Includes Canadian loans, which have similar risk characteristics as U.S. loans.
Previously, we entered into loan modifications related to a multifamily asset in New York City, which were classified as troubled debt restructurings under GAAP. During the three months ended December 31, 2021, the borrower committed significant additional capital to the property and engaged new management to oversee property operations, and we reduced the loan's outstanding principal balance to $37.5 million, which remains unchanged as of September 30, 2022. As a result of the modification, during the three months ended December 31, 2021, we charged-off $14.4 million of the $14.8 million asset-specific CECL reserve we recorded on this loan, and reversed the remaining $360,000 CECL reserve. We have no remaining asset-specific CECL reserve against this loan as of September 30, 2022. The loan is paying interest income current and we resumed income accrual for this loan as of December 31, 2021. No income was recorded on this loan during the nine months ended September 30, 2021.
Previously, we entered into a loan modification related to a hospitality asset in New York City, which is classified as a troubled debt restructuring under GAAP. As of September 30, 2022, this loan has an outstanding principal balance of $286.3 million, net of cost-recovery proceeds, and a CECL reserve of $54.9 million, which was recorded based on our estimation of the fair value of the loan’s underlying collateral as of September 30, 2022. No income was recorded on this loan during both the nine months ended September 30, 2022 and 2021.
Our primary credit quality indicator is our risk ratings, which are further discussed above. The following tables present the net book value of our loan portfolio as of September 30, 2022 and December 31, 2021, respectively, by year of origination, investment pool, and risk rating ($ in thousands):
 
Net Book Value of Loans Receivable by Year of Origination(1)
 As of September 30, 2022
Risk Rating
20222021202020192018PriorTotal
U.S. loans(2)
1$126,002 $312,208 $4,716 $200,910 $415,438 $— $1,059,274 
2117,2401,985,821489,744152,1021,068,623—3,813,530
31,978,7585,733,693273,892952,167823,215283,41410,045,139
4—208,829—96,542819,164365,2541,489,789
5———————
Total U.S. loans$2,222,000 $8,240,551 $768,352 $1,401,721 $3,126,440 $648,668 $16,407,732 
Non-U.S. loans
1$— $— $— $— $— $— $— 
2533,332570,49786,8951,110,962——2,301,686
3756,1311,423,210—709,834135,024—3,024,199
4———312,314——312,314
5——— ————
Total Non-U.S. loans$1,289,463 $1,993,707 $86,895 $2,133,110 $135,024 $— $5,638,199 
Unique loans
1$— $— $— $— $— $— $— 
2208,046—————208,046
3838,610———162,901— 1,001,511
4———267,077615,759—882,836
5———————
Total unique loans$1,046,656 $— $— $267,077 $778,660 $— $2,092,393 
Impaired loans
1$— $— $— $— $— $— $— 
2———————
3———————
4———————
5————284,809—284,809
Total impaired loans$— $— $— $— $284,809 $— $284,809 
Total loans receivable
1$126,002 $312,208 $4,716 $200,910 $415,438 $— $1,059,274 
2858,6182,556,318576,6391,263,0641,068,623—6,323,262
33,573,4997,156,903273,8921,662,0011,121,140283,41414,070,849
4—208,829—675,9331,434,923365,2542,684,939
5————284,809—284,809
Total loans receivable$4,558,119 $10,234,258 $855,247 $3,801,908 $4,324,933 $648,668 $24,423,133 
CECL reserve(144,431)
Loans receivable, net$24,278,702 
(1)Date loan was originated or acquired by us. Origination dates are subsequently updated to reflect material loan modifications.
(2)Includes Canadian loans, which have similar risk characteristics as U.S. loans.
 
Net Book Value of Loans Receivable by Year of Origination(1)(2)
 As of December 31, 2021
Risk Rating
20212020201920182017PriorTotal
U.S. loans(3)
1$125,873 $— $196,017 $72,752 $248,134 $— $642,776 
2876,536427,839221,5131,134,176354,77582,2743,097,113
37,511,883358,4481,109,1701,116,872292,520228,26410,617,157
4——96,539534,93863,35889,439784,274
5———————
Total U.S. loans$8,514,292 $786,287 $1,623,239 $2,858,738 $958,787 $399,977 $15,141,320 
Non-U.S. loans
1$— $— $— $— $— $— $— 
2698,13098,4121,306,878———2,103,420
31,403,110—932,939394,949——2,730,998
4——343,030———343,030
5———————
Total Non-U.S. loans$2,101,240 $98,412 $2,582,847 $394,949 $— $— $5,177,448 
Unique loans
1$— $— $— $— $— $— $— 
2———————
3———197,018—58,854255,872
4——322,787820,781——1,143,568
5———————
Total unique loans$— $— $322,787 $1,017,799 $— $58,854 $1,399,440 
Impaired loans
1$— $— $— $— $— $— $— 
2———————
3———————
4———————
5———284,809——284,809
Total impaired loans$— $— $— $284,809 $— $— $284,809 
Total loans receivable
1$125,873 $— $196,017 $72,752 $248,134 $— $642,776 
21,574,666526,2511,528,3911,134,176354,77582,2745,200,533
38,914,993358,4482,042,1091,708,839292,520287,11813,604,027
4——762,3561,355,71963,35889,4392,270,872
5———284,809——284,809
Total loans receivable$10,615,532 $884,699 $4,528,873 $4,556,295 $958,787 $458,831 $22,003,017 
CECL reserve(124,679)
Loans receivable, net$21,878,338 
(1)Date loan was originated or acquired by us. Origination dates are subsequently updated to reflect material loan modifications.
(2)Excludes the $78.0 million net book value of our held-to-maturity debt securities which represents our subordinate position we own in the 2018 Single Asset Securitization, and is included in other assets on our consolidated balance sheets. See Note 4 for details of the subordinate position we own in the 2018 Single Asset Securitization.
(3)Includes Canadian loans, which have similar risk characteristics as U.S. loans.
Multifamily Joint Venture As discussed in Note 2, we entered into a Multifamily Joint Venture in April 2017. As of September 30, 2022 and December 31, 2021, our Multifamily Joint Venture held $802.9 million and $746.9 million of loans, respectively, which are included in the loan disclosures above. Refer to Note 2 for additional discussion of our Multifamily Joint Venture.