Fair Values (Tables)

6 Months Ended

Jun. 30, 2014

Assets Measured at Fair Value on a Recurring Basis

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


	Level 1		Level 2		Level 3		Fair Value⁽¹⁾
June 30, 2014
Other assets, at fair value⁽²⁾	$	—	$	1,737	$	59,964	$	61,701
December 31, 2013
Other assets, at fair value⁽²⁾	$	—	$	1,944	$	54,461	$	56,405

(1)	CT CDO I had one impaired loan with a principal balance of $10.5 million measured on a non-recurring basis that had a 100% loan loss reserve as of December 31, 2013.

(2)	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 a 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):


	Six Months Ended June 30,
	2014			2013
	Other			Loans		Other			Investment in
	Assets			Held-for-Sale, net		Assets			CT Legacy Assets
Balance, beginning	$	54,461		$	—	$	—		$	132,000
Consolidation of CT Legacy Partners		—			—		166,094			(132,000	)
Transfer from loans receivable, at fair value		—			2,000		—			—
Proceeds from investments		(326	)		—		(37,279	)		—
Deferred interest		—			—		195			—
Adjustments to fair value included in earnings
Gain on investments at fair value		5,829			—		4,000			—
Valuation allowance on loans held-for-sale		—			1,800		—			—

Balance, ending	$	59,964		$	3,800	$	133,010		$	—

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 June 30, 2014 ($ in millions):


	Assumption Ranges for Significant						Book Value
	Unobservable Inputs (Level 3)⁽¹⁾						Sensitivity to a
		Recovery			Book		100 bp Discount
Collateral Type	Discount Rate	Percentage⁽²⁾			Value		Rate Increase
Hotel	7%		100	%	$	15.0		(0.4	%)
Office	8% - 15%		100	%		23.4		(0.3	%)

					$	38.4

(1)	Excludes loans for which there is no expectation of future cash flows.

(2)	Represents the proportion of the principal expected to be collected relative to the loan balances as of June 30, 2014.

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


	Assumption Ranges for Significant						Book Value
	Unobservable Inputs (Level 3)⁽¹⁾						Sensitivity to a
		Recovery			Book		100 bp Discount
Collateral Type	Discount Rate	Percentage⁽²⁾			Value		Rate Increase
Hotel	7%		100	%	$	15.0		(1.4	%)
Office	6% - 15%		100	%		25.7		(0.3	%)

					$	40.7

(1)	Excludes loans for which there is no expectation of future cash flows.

(2)	Represents the proportion of the principal expected to be collected relative to the loan balances as of December 31, 2013.

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 ($ in thousands):


	June 30, 2014						December 31, 2013
	Carrying		Face		Fair		Carrying		Face		Fair
	Amount		Amount		Value		Amount		Amount		Value
Financial assets
Cash and cash equivalents	$	120,456	$	120,456	$	120,456	$	52,342	$	52,342	$	52,342
Restricted cash		11,392		11,392		11,392		10,096		10,096		10,096
Loans receivable, net		3,488,179		3,514,032		3,514,032		2,047,223		2,076,411		2,058,699

Financial liabilities
Repurchase obligations		1,779,650		1,779,650		1,779,650		1,109,353		1,109,353		1,109,353
Convertible notes, net		160,671		172,500		186,300		159,524		172,500		181,772
Participations sold		461,078		461,078		462,603		90,000		90,000		90,304

- 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.

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