3. LOANS RECEIVABLE

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


	March 31, 2015			December 31, 2014
Number of loans		60			60
Principal balance	$	4,977,468		$	4,462,897
Net book value	$	4,943,383		$	4,428,500
Unfunded loan commitments⁽¹⁾	$	550,012		$	513,229
Weighted-average cash coupon⁽²⁾		L+4.26	%		L+4.36	%
Weighted-average all-in yield⁽²⁾		L+4.68	%		L+4.81	%
Weighted-average maximum maturity (years)⁽³⁾		3.7			3.9

(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 four years.

(2)

As of March 31, 2015, our floating rate loans and related liabilities were indexed to the various benchmark rates relevant in each case in terms of currency and payment frequency. Therefore the net exposure to each benchmark rate is in direct proportion to our net assets indexed to that rate. In addition, 8% of our loans earned interest based on LIBOR floors, with an average floor of 0.24%, as of March 31, 2015. In addition to cash coupon, all-in yield includes the amortization of deferred origination fees, loan origination costs, and accrual of both extension and exit fees.

(3)

Maximum maturity assumes all extension options are exercised by the borrower, however our loans may be repaid prior to such date. As of March 31, 2015, 83% of our loans are subject to yield maintenance, lock-out provisions, or other prepayment restrictions and 17% are open to repayment by the borrower.

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


	Principal Balance			Deferred Fees and Other Items			Net Book Value
December 31, 2014	$	4,462,897		$	(34,397	)	$	4,428,500
Loan fundings		903,152			—			903,152
Loan repayments and sales		(333,113	)		—			(333,113	)
Unrealized loss on foreign currency translation		(55,468	)		673			(54,795	)
Deferred origination fees and expenses		—			(6,078	)		(6,078	)
Amortization of deferred fees and expenses		—			5,717			5,717

March 31, 2015	$	4,977,468		$	(34,085	)	$	4,943,383

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):


	March 31, 2015					December 31, 2014
Asset Type	Net Book Value		Percentage			Net Book Value		Percentage
Senior loans⁽¹⁾	$	4,909,214		99	%	$	4,340,586		98	%
Subordinate loans⁽²⁾		34,169		1			87,914		2

	$	4,943,383		100	%	$	4,428,500		100	%


Property Type	Net Book Value		Percentage			Net Book Value		Percentage
Office	$	2,516,133		51	%	$	1,878,605		42	%
Hotel		1,269,408		26			1,267,486		29
Multifamily		414,807		8			426,094		10
Condominium		252,065		5			315,686		7
Retail		218,620		4			270,812		6
Other		272,350		6			269,817		6

	$	4,943,383		100	%	$	4,428,500		100	%


Geographic Location	Net Book Value		Percentage			Net Book Value		Percentage
United States
Northeast	$	1,508,339		31	%	$	1,383,258		31	%
West		756,791		15			628,275		14
Southeast		666,938		13			657,484		15
Northwest		416,234		8			138,796		3
Midwest		389,586		8			335,406		8
Southwest		377,964		8			405,741		9

Subtotal		4,115,852		83			3,548,960		80
International
United Kingdom		603,306		12			622,692		14
Canada		117,355		2			137,024		3
Spain		76,954		2			86,289		2
Netherlands		29,916		1			33,535		1

Subtotal		827,531		17			879,540		20

Total	$	4,943,383		100	%	$	4,428,500		100	%

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

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

Loan Risk Ratings

As further described in Note 2, our Manager evaluates our loan portfolio on a quarterly basis. In conjunction with our quarterly loan portfolio review, our Manager assesses the risk factors of each loan, and assigns a risk rating based on several factors. Factors considered in the assessment include, but are not limited to, risk of loss, current LTV, 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):


	March 31, 2015						December 31, 2014
Risk Rating	Number of Loans		Principal Balance		Net Book Value		Number of Loans		Principal Balance		Net Book Value
1		4	$	405,957	$	401,840		5	$	209,961	$	209,112
2		45		3,741,108		3,717,453		44		3,339,972		3,313,906
3		11		830,403		824,090		11		912,964		905,482
4 - 5		—		—		—		—		—		—

		60	$	4,977,468	$	4,943,383		60	$	4,462,897	$	4,428,500

We do not have any loan impairments, nonaccrual loans, or loans in maturity default as of March 31, 2015 or December 31, 2014.