Loans Receivable, At Fair Value

9 Months Ended

Sep. 30, 2013

Receivables [Abstract]

Loans Receivable, At Fair Value

7. LOANS RECEIVABLE, AT FAIR VALUE

We record CT Legacy Partners’ loans receivable investments at fair value, which are determined using internal financial model-based estimations. The CT Legacy Partners loans receivable portfolio included nine loans with an aggregate principal balance of $176.0 million, which were reported at their aggregate fair value of $66.1 million as of September 30, 2013. As of December 31, 2012, there were no loans receivables at fair value because we accounted for CT Legacy Partners as a non-consolidated subsidiary. Refer to Note 3 and Note 8 for additional discussion of CT Legacy Partners. Refer to Note 17 for additional disclosure regarding fair value and Note 19 for an allocation of our loans receivable between our operating segments.

Activity relating to our loans receivable, at fair value was ($ in thousands):

December 31, 2012	$	—
Consolidation of CT Legacy Partners		150,332
Capitalized interest		325
Loan satisfactions		(79,959	)
Partial loan repayments		(1,721	)
Unrealized gain on investments at fair value		3,899
Reclassification to other assets		(6,813	)
September 30, 2013	$	66,063

The following table details overall statistics for CT Legacy Partners’ loans receivable, which is held at fair value as of September 30, 2013 ($ in thousands):

	Loans Receivable, at Fair Value
	Floating Rate			Fixed Rate			Total
Number of loans		6			3			9
Net book value	$	42,452		$	23,611		$	66,063
Weighted-average cash coupon (1)		L+3.78	%		8.14	%		5.13	%
Weighted-average all-in yield (1)		L+3.78	%		8.14	%		5.13	%
Weighted-average maximum maturity (years) (2)		1.1			1.1			1.1

(1) Floating rate loans are indexed to LIBOR as of September 30, 2013. LIBOR was 0.18% as of September 30, 2013; however, certain of our loans receivable earn interest based on a minimum LIBOR floor of 2.00%. Amounts exclude all non-performing loans.

(2) Maximum maturity date assumes all extension options are exercised.

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

	September 30, 2013
Asset Type	Fair Value		Percentage
Senior mortgages	$	25,597		39	%
Mezzanine loans		40,466		61
Total	$	66,063		100	%
Property Type	Fair Value		Percentage
Office	$	39,560		60	%
Hotel		26,503		40
Total	$	66,063		100	%
Geographic Location	Fair Value		Percentage
Northeast	$	39,560		60	%
West		14,604		22
Southeast		11,899		18
Total	$	66,063		100	%

Nonaccrual loans

In accordance with our revenue recognition policies discussed in Note 2, we do not accrue interest on loans which are 90 days past due or, in the opinion of our Manager, are otherwise uncollectable. We do not have any material interest receivable accrued on nonperforming loans as of September 30, 2013.

The following table details CT Legacy Partner’s loans receivable which are on nonaccrual status ($ in thousands):

	September 30, 2013
	Principal
Asset Type	Balance		Fair Value
Subordinate Interests in Mortgages	$	43,448	$	—
Mezzanine & Other Loans		69,146		11,899
Total	$	112,594	$	11,899