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Loans Receivable, Net
 12 Months Ended
Dec. 31, 2022
Receivables [Abstract]  
Loans Receivable, Net LOANS RECEIVABLE, NET
The following table details overall statistics for our loans receivable portfolio ($ in thousands):
 December 31, 2022December 31, 2021
Number of loans203 188 
Principal balance$25,160,343 $22,156,437 
Net book value$24,691,743 $21,878,338 
Unfunded loan commitments(1)
$3,806,153 $4,180,128 
Weighted-average cash coupon(2)
+ 3.44 %+ 3.19 %
Weighted-average all-in yield(2)
+ 3.84 %+ 3.52 %
Weighted-average maximum maturity (years)(3)
3.13.4
(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 December 31, 2022, substantially all of our loans by principal balance earned a floating rate of interest, primarily indexed to USD LIBOR and SOFR. 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 loans 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 December 31, 2022, 50% of our loans by principal balance were subject to yield maintenance or other prepayment restrictions and 50% 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 December 31, 2022 ($ in thousands):

 Loans Receivable Principal Balance
Index Rate FloorsUSD
Non-USD(1)
Total
Fixed Rate$38,160 $— $38,160 
0.00% or no floor4,478,8526,973,65111,452,503
0.01% to 1.00% floor9,106,174858,2479,964,421
1.01% to 1.50% floor2,104,805153,4532,258,258
1.51% to 2.00% floor697,125343,8411,040,966
2.01% or more floor356,60349,432406,035
Total(2)
$16,781,719 $8,378,624 $25,160,343 
(1)Includes Euro, British Pound Sterling, Swedish Krona, Australian Dollar, Canadian Dollar, Swiss Franc, and Danish Krone currencies.
(2)As of December 31, 2022, the weighted-average index rate floor of our loan portfolio was 0.36%. Excluding 0.0% index rate floors and loans with no floor, the weighted-average index rate floor was 0.64%.
Activity relating to our loans receivable portfolio was as follows ($ in thousands):
 
Principal
Balance
Deferred Fees /
Other Items(1)
Net Book
Value
Loans Receivable, as of December 31, 2020
$16,652,824 $(80,109)$16,572,715 
Loan fundings12,550,463—12,550,463
Loan repayments and sales proceeds(6,733,105)—(6,733,105)
Principal charge-offs(14,427)—(14,427)
Unrealized (loss) gain on foreign currency translation(299,318)1,424(297,894)
Deferred fees and other items—(143,002)(143,002)
Amortization of fees and other items—68,26768,267
Loans Receivable, as of December 31, 2021
$22,156,437 $(153,420)$22,003,017 
Loan fundings6,810,218—6,810,218
Loan repayments and sales(3,168,155)—(3,168,155)
Unrealized (loss) gain on foreign currency translation(638,157)5,255(632,902)
Deferred fees and other items—(74,930)(74,930)
Amortization of fees and other items—80,63280,632
Loans Receivable, as of December 31, 2022
$25,160,343 $(142,463)$25,017,880 
CECL reserve(326,137)
Loans Receivable, net, as of December 31, 2022
$24,691,743 
(1)Other items primarily consist of purchase and sale discounts or premiums, exit fees, and deferred origination expenses.
The tables below detail the property type and geographic distribution of the properties securing the loans in our portfolio ($ in thousands):
December 31, 2022
Property Type
Number of
 Loans
Net
Book Value
Total Loan
 Exposure(1)
Percentage of
 Portfolio
Office64$9,441,622 $10,593,584 40%
Multifamily806,214,1236,330,15324
Hospitality304,879,3144,908,58318
Industrial122,140,6362,236,7168
Retail91,098,3151,141,9324
Other81,243,8701,599,3136
Total loans receivable203$25,017,880 $26,810,281 100%
CECL reserve(326,137)
Loans receivable, net$24,691,743 
Geographic Location
Number of
 Loans
Net
Book Value
Total Loan
 Exposure(1)
Percentage of
 Portfolio
United States    
Sunbelt75$6,538,034 $6,802,928 26%
Northeast365,339,8745,666,96821
West333,515,5174,547,94617
Midwest10987,7181,091,8824
Northwest6317,863321,9371
Subtotal16016,699,00618,431,66169
International
United Kingdom233,362,6293,393,12613
Australia51,405,6011,417,3185
Spain41,237,4461,241,8085
Ireland31,192,2201,199,4064
Sweden1473,374476,6732
Canada149,40949,432—
Other Europe6598,195600,8572
Subtotal438,318,8748,378,62031
Total loans receivable203$25,017,880 $26,810,281 100%
CECL reserve(326,137)
Loans receivable, net$24,691,743 
(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 December 31, 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):
December 31, 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)
117$1,403,185 $1,428,232 8$642,776 $645,854 
2365,880,4246,562,852285,200,5335,515,250
313414,128,13315,209,01814113,604,02714,944,045
4112,677,0272,680,145102,270,8722,277,653
55929,111930,0341284,809286,309
Total loans receivable203$25,017,880 $26,810,281 188$22,003,017 $23,669,111 
CECL reserve(326,137)(124,679)
Loans receivable, net$24,691,743 $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 December 31, 2022 and December 31, 2021, respectively.
(2)Excludes investment exposure to the 2018 Single Asset Securitization of $379.3 million as of December 31, 2021. See Note 4 for details of the subordinate position we own in the 2018 Single Asset Securitization.
The weighted-average risk rating of our total loan exposure was 2.8 as of both December 31, 2022 and December 31, 2021.
Current Expected Credit Loss Reserve
The CECL reserve required under GAAP reflects our current estimate of potential credit losses related to the loans and debt securities included in our consolidated balance sheets. Refer to Note 2 for further discussion of our CECL reserve. The following table presents the activity in our loans receivable CECL reserve by investment pool for the year ended December 31, 2022 and 2021 ($ in thousands):
 
U.S. Loans(1)
Non-U.S.
 Loans
Unique
 Loans
Impaired
 Loans
Total
Loans Receivable, Net     
CECL reserve as of December 31, 2021
$26,885 $10,263 $32,657 $54,874 $124,679 
Increase in CECL reserve40,99512,25613,303134,904201,458
CECL reserve as of December 31, 2022
67,88022,51945,960189,778326,137
CECL reserve as of December 31, 2020
$42,995 $27,734 $33,159 $69,661 $173,549 
Decrease in CECL reserve(16,110)(17,471)(502)(360)(34,443)
Charge-offs of CECL reserve— — — (14,427)(14,427)
CECL reserve as of December 31, 2021
$26,885 $10,263 $32,657 $54,874 $124,679 
(1) Includes Canadian loans, which have similar risk characteristics as U.S. loans.
During the year ended December 31, 2022, we recorded an increase of $201.5 million in the CECL reserve against our loans receivable portfolio, bringing our total loans receivable CECL reserve to $326.1 million as of December 31, 2022. This CECL reserve reflects certain loans assessed for impairment in our portfolio, as well as macroeconomic conditions, including inflationary pressures and market volatility.
During the year ended December 31, 2022, we recorded an increase of $134.9 million in the CECL reserve specifically related to four of our loans receivable with an aggregate net book value of $644.3 million as of December 31, 2022. As of December 31, 2022, the income accrual was suspended on these four loans as recovery of income and principal was doubtful. During the three months ended December 31, 2022, we recorded $11.3 million of interest income on these loans. As of December 31, 2022, we had an aggregate $189.8 million CECL reserve specifically related to five of our loans receivable, with an aggregate net book value of $929.1 million. This CECL reserve was recorded based on our estimation of the fair value of each of the loan’s underlying collateral as of December 31, 2022. As of December 31, 2021, we had a
$54.9 million CECL reserve specifically related to one of our loans receivable, with a net book value of $284.8 million. No income was recorded on this loan during the years ended December 31, 2022 and 2021. As of December 31, 2022, all borrowers were current with all contractual terms of each respective loan, including payments of interest. Refer to Note 2 for further discussion of our revenue recognition policy and CECL reserve.
During the fourth quarter of 2022, we entered into a loan modification related to an office asset in New York City, which is classified as a troubled debt restructuring under GAAP. This modification included, among other changes, a reduction in the loan's contractual interest payments, an incremental exit fee, and an extension of the loan's maturity date. This loan has an outstanding principal balance of $193.6 million, with commitments to fund an additional $8.2 million, at our discretion, as of December 31, 2022. As of December 31, 2022, this loan was deemed impaired and we recorded an asset-specific CECL reserve against this loan.
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. 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. As of December 31, 2022, this loan has an outstanding principal balance of $38.2 million, net of cost-recovery proceeds. As of December 31, 2022, this loan was deemed impaired and we recorded an asset-specific CECL reserve against this loan.
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 December 31, 2022, this loan has an outstanding principal balance of $286.3 million, net of cost-recovery proceeds. As of June 30, 2020 this loan was deemed impaired and we recorded an asset-specific CECL reserve against this loan. This asset-specific CECL reserve has not changed as of December 31, 2022.
Our primary credit quality indicator is our risk ratings, which are further discussed above. The following tables present the net book value of our loan portfolio as of December 31, 2022 and December 31, 2021, respectively, by year of origination, investment pool, and risk rating ($ in thousands):
 
Net Book Value of Loans Receivable by Year of Origination(1)
 As of December 31, 2022
Risk Rating
20222021202020192018PriorTotal
U.S. loans(2)
1$145,152 $563,426 $5,075 $231,894 $415,471 $— $1,361,018 
2117,3141,742,289362,062156,4781,178,721—3,556,864
32,035,1115,776,346411,880735,772472,13480,3239,511,566
4———96,5421,160,627132,6871,389,856
5———————
Total U.S. loans$2,297,577 $8,082,061 $779,017 $1,220,686 $3,226,953 $213,010 $15,819,304 
Non-U.S. loans
1$— $— $— $— $— $— $— 
2590,580609,27094,9951,028,715——2,323,560
3977,7671,586,266—896,39286,706—3,547,131
4———344,089——344,089
5——— ————
Total Non-U.S. loans$1,568,347 $2,195,536 $94,995 $2,269,196 $86,706 $— $6,214,780 
Unique loans
1$42,167 $— $— $— $— $— $42,167 
2———————
3893,114———176,322— 1,069,436
4———289,141653,941—943,082
5———————
Total unique loans$935,281 $— $— $289,141 $830,263 $— $2,054,685 
Impaired loans
1$— $— $— $— $— $— $— 
2———————
3———————
4———————
5—208,894——284,809435,408929,111
Total impaired loans$— $208,894 $— $— $284,809 $435,408 $929,111 
Total loans receivable
1$187,319 $563,426 $5,075 $231,894 $415,471 $— $1,403,185 
2707,8942,351,559457,0571,185,1931,178,721—5,880,424
33,905,9927,362,612411,8801,632,164735,16280,32314,128,133
4———729,7721,814,568132,6872,677,027
5—208,894——284,809435,408929,111
Total loans receivable$4,801,205 $10,486,491 $874,012 $3,779,023 $4,428,731 $648,418 $25,017,880 
CECL reserve(326,137)
Loans receivable, net$24,691,743 
(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 December 31, 2022 and December 31, 2021, our Multifamily Joint Venture held $795.6 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.