Loans Receivable (Tables)

9 Months Ended

Sep. 30, 2014

Receivables [Abstract]

Overall Statistics for Loans Receivable Portfolio

The following table details overall statistics for our loans receivable portfolio ($ in thousands):

	September 30, 2014			December 31, 2013
Number of loans		55			31
Principal balance	$	3,940,626		$	2,077,227
Net book value	$	3,906,226		$	2,047,223
Unfunded commitments(1)	$	513,363		$	164,283
Weighted-average cash coupon(2)		L+4.42	%		L+4.64	%
Weighted-average all-in yield(2)		L+4.97	%		L+5.26	%
Weighted-average maximum maturity (years)(3)		3.9			4.1

(1) Unfunded commitments will primarily be funded to finance property improvements or lease-related expenditures by the borrowers. These future commitments will expire over the next five years.

(2) As of September 30, 2014, 83% of our loans are indexed to one-month USD LIBOR, 13% are indexed to three-month GBP LIBOR, and 4% referencing other floating rate indices. In addition, 17% of our loans currently earn interest based on LIBOR floors, with an average floor of 0.30%, as of September 30, 2014. In addition to cash coupon, all-in yield includes the amortization of deferred origination fees, loan origination costs, and accrual of exit fees.

(3) Maximum maturity assumes all extension options are exercised, however our loans may be repaid prior to such date. As of September 30, 2014, 88% of our loans are subject to yield maintenance, lock-out provisions, or other prepayment restrictions and 12% are open to repayment by the borrower.

Activity Relating to Loans Receivable

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

	Principal Balance			Deferred Fees and Other Items			Net Book Value
December 31, 2013	$	2,077,227		$	(30,004	)	$	2,047,223
Loan fundings		2,297,545			—			2,297,545
Loan repayments and sales		(374,946	)		—			(374,946	)
Unrealized loss on foreign currency translation		(21,653	)		309			(21,344	)
Deferred origination fees and expenses		—			(28,015	)		(28,015	)
Amortization of deferred fees and expenses		—			12,763			12,763
Realized loan losses(1)		(10,547	)		10,547			—
Reclassification to other assets		(27,000	)		—			(27,000	)
September 30, 2014	$	3,940,626		$	(34,400	)	$	3,906,226

(1) Includes a loan loss reserve of $10.5 million as of December 31, 2013, related to one loan in the CT Legacy Portfolio segment, owned by CT CDO I, with a principal balance of $10.5 million. This loan was subsequently written-off resulting in an aggregate loan loss reserve of zero as of September 30, 2014.

Types of Loans in Loan Portfolio, as well as Property Type and Geographic Distribution of Properties Securing these Loans

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

	September 30, 2014					December 31, 2013
	Net Book					Net Book
Asset Type	Value		Percentage			Value		Percentage
Senior loans(1)	$	3,701,763		95	%	$	1,800,329		88	%
Subordinate loans(2)		204,463		5			246,894		12
	$	3,906,226		100	%	$	2,047,223		100	%
	Net Book					Net Book
Property Type	Value		Percentage			Value		Percentage
Office	$	1,698,674		43	%	$	864,666		42	%
Hotel		1,080,034		28			390,492		19
Multifamily		384,188		10			341,819		17
Condominium		323,773		8			275,645		13
Retail		190,865		5			43,115		2
Other		228,692		6			131,486		6
	$	3,906,226		100	%	$	2,047,223		100	%
	Net Book					Net Book
Geographic Location	Value		Percentage			Value		Percentage
United States
Northeast	$	1,201,003		31	%	$	828,571		40	%
West		668,419		17			469,262		23
Southeast		503,345		13			243,798		12
Southwest		357,777		9			216,429		11
Northwest		242,203		6			166,207		8
Midwest		322,635		8			85,708		4
Subtotal		3,295,382		84			2,009,975		98
International
United Kingdom		490,558		13			37,248		2
Spain		85,329		2			—		—
Netherlands		34,957		1			—		—
Subtotal		610,844		16			37,248		2
Total	$	3,906,226		100	%	$	2,047,223		100	%

(1) Includes senior mortgages and similar credit quality loans, including related contiguous subordinate loans, note financings of senior mortgage loans, and pari passu participations in senior mortgage loans.

(2) Includes subordinate interests in mortgages and mezzanine loans.

Principal Balance and Net Book Value of Loans Receivable Based on Internal Risk Ratings

The following table allocates the principal balance and net book value of our loans receivable based on our internal risk ratings as of September 30, 2014 ($ in thousands):

	Senior Loans(1)						Subordinate Loans(2)						Total
Risk	Number		Principal		Net		Number		Principal		Net		Net
Rating	of Loans		Balance		Book Value		of Loans		Balance		Book Value		Book Value
1 - 3		53	$	3,732,929	$	3,701,763		2	$	207,697	$	204,463	$	3,906,226
4 - 5		—		—		—		—		—		—		—
6 - 8		—		—		—		—		—		—		—
		53	$	3,732,929	$	3,701,763		2	$	207,697	$	204,463	$	3,906,226

(1) Includes senior mortgages and similar credit quality loans, including related contiguous subordinate loans, note financings of senior mortgage loans, and pari passu participations in senior mortgage loans.

(2) Includes subordinate interests in mortgages and mezzanine loans.

The following table allocates the principal balance and net book value of our loans receivable based on our internal risk ratings as of December 31, 2013 ($ in thousands):

	Senior Loans(1)						Subordinate Loans(2)						Total
Risk	Number		Principal		Net		Number		Principal		Net		Net
Rating	of Loans		Balance		Book Value		of Loans		Balance		Book Value		Book Value
1 - 3		26	$	1,811,513	$	1,800,329		3	$	227,350	$	219,894	$	2,020,223
4 - 5		—		—		—		—		—		—		—
6 - 8		—		—		—		2		37,548		27,000		27,000
		26	$	1,811,513	$	1,800,329		5	$	264,898	$	246,894	$	2,047,223

(1) Includes senior mortgages and similar credit quality loans, including related contiguous subordinate loans, note financings of senior mortgage loans, and pari passu participations in senior mortgage loans.

(2) Includes subordinate interests in mortgages and mezzanine loans.