Loans Receivable (Tables)

6 Months Ended

Jun. 30, 2016

Overall Statistics for Loans Receivable Portfolio

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


	June 30, 2016			December 31, 2015
Number of loans		116			125
Principal balance	$	9,122,567		$	9,108,361
Net book value	$	9,090,934		$	9,077,007
Unfunded loan commitments⁽¹⁾	$	907,709		$	700,658
Weighted-average cash coupon⁽²⁾		4.85	%		4.84	%
Weighted-average all-in yield⁽²⁾		5.19	%		5.18	%
Weighted-average maximum maturity (years)⁽³⁾		3.0			3.1

(1)

Unfunded commitments will primarily be funded to finance property improvements or lease-related expenditures by the borrowers. These future commitments will be funded over the term of each loan, subject in certain cases to an expiration date.

(2)

As of June 30, 2016, our floating rate loans were indexed to various benchmark rates, with 84% of floating rate loans indexed to USD LIBOR. In addition, $146.0 million of our floating rate loans earned interest based on floors that are above the applicable index, with an average floor of 1.80%, as of June 30, 2016. As of December 31, 2015, our floating rate loans were indexed to various benchmark rates, with 84% of floating rate loans indexed to USD LIBOR. In addition, $147.9 million of our floating rate loans earned interest based on floors that are above the applicable index, with an average floor of 1.80%, as of December 31, 2015. In addition to cash coupon, all-in yield includes the amortization of deferred origination fees, loan origination costs, purchase discounts, and accrual of both extension and exit fees. Cash coupon and all-in yield assume applicable floating benchmark rate for weighted-average calculation.

(3)

Maximum maturity assumes all extension options are exercised by the borrower, however our loans may be repaid prior to such date. As of June 30, 2016, 63% of our loans were subject to yield maintenance or other prepayment restrictions and 37% were open to repayment by the borrower without penalty. As of December 31, 2015, 64% of our loans were subject to yield maintenance or other prepayment restrictions and 36% were open to repayment by the borrower without penalty.

Activity Relating to Loans Receivable Portfolio

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


	Principal Balance			Deferred Fees / Other Items⁽¹⁾			Net Book Value
December 31, 2015	$	9,108,361		$	(31,354)		$	9,077,007
Loan fundings		1,401,871			—			1,401,871
Loan repayments		(1,341,814	)		—			(1,341,814	)
Unrealized (loss) gain on foreign currency translation		(45,851	)		974			(44,877	)
Deferred fees and other items⁽¹⁾		—			(21,613	)		(21,613	)
Amortization of fees and other items⁽¹⁾		—			20,360			20,360

June 30, 2016	$	9,122,567		$	(31,633	)	$	9,090,934

(1)	Other items primarily consist of purchase discounts or premiums, exit fees, and deferred origination expenses.

Property Type and Geographic Distribution of Properties Securing Loans in Portfolio

The tables below detail the property type and geographic distribution of the properties securing the loans in our portfolio ($ in thousands):


June 30, 2016
Property Type	Number of Loans		Net Book Value		Total Loan Exposure⁽¹⁾		Percentage of Portfolio
Office		54	$	4,110,928	$	4,176,738		41	%
Hotel		18		1,863,974		1,937,744		19
Manufactured housing		15		1,259,884		1,257,691		12
Retail		9		818,471		1,195,197		12
Multifamily		10		622,038		623,892		6
Condominium		2		101,238		344,337		3
Other		8		314,401		649,877		7

		116	$	9,090,934	$	10,185,476		100	%


Geographic Location	Number of Loans		Net Book Value		Total Loan Exposure⁽¹⁾		Percentage of Portfolio
United States
Northeast		23	$	2,158,020	$	2,168,623		21	%
Southeast		25		1,716,458		2,093,981		20
West		20		1,311,546		1,560,118		15
Midwest		7		921,518		924,728		9
Southwest		12		877,497		875,685		9
Northwest		6		261,194		305,556		3

Subtotal		93		7,246,233		7,928,691		77
International
United Kingdom		10		981,209		1,340,300		13
Canada		9		518,592		515,379		5
Germany		1		218,458		273,503		3
Spain		1		67,930		68,600		1
Netherlands		2		58,512		59,003		1

Subtotal		23		1,844,701		2,256,785		23

Total		116	$	9,090,934		10,185,476		100	%

(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 $1.1 billion of such non-consolidated senior interests as of June 30, 2016.


December 31, 2015
Property Type	Number of Loans		Net Book Value		Total Loan Exposure⁽¹⁾		Percentage of Portfolio
Office		55	$	4,039,521	$	4,085,007		41	%
Hotel		20		1,903,544		1,986,113		20
Manufactured housing		18		1,361,572		1,359,132		13
Retail		9		684,944		1,031,405		10
Multifamily		11		580,112		582,545		6
Condominium		3		127,434		353,144		3
Other		9		379,880		750,780		7

		125	$	9,077,007	$	10,148,126		100	%


Geographic Location	Number of Loans		Net Book Value		Total Loan Exposure⁽¹⁾		Percentage of Portfolio
United States
Northeast		25	$	2,260,392	$	2,272,163		22	%
Southeast		27		1,836,766		2,185,609		21
West		22		1,125,238		1,356,301		13
Southwest		15		1,035,839		1,034,732		10
Midwest		5		616,964		617,774		6
Northwest		5		390,307		415,207		4

Subtotal		99		7,265,506		7,881,786		76
International
United Kingdom		10		888,998		1,283,644		13
Canada		11		561,023		558,724		6
Germany		2		235,294		296,424		3
Spain		1		66,661		67,416		1
Netherlands		2		59,525		60,132		1

Subtotal		26		1,811,501	$	2,266,340		24

Total		125	$	9,077,007	$	10,148,126		100	%

(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 $1.0 billion of such non-consolidated senior interests as of December 31, 2015.

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 ($ in thousands):


	June 30, 2016						December 31, 2015
Risk Rating	Number of Loans	Net Book Value		Total Loan Exposure⁽¹⁾		Risk Rating	Number of Loans	Net Book Value		Total Loan Exposure⁽¹⁾
1	15	$	1,366,279	$	1,364,986	1	12	$	919,991	$	925,443
2	63		4,356,669		4,409,578	2	77		5,929,447		6,316,890
3	38		3,367,986		4,410,912	3	35		2,114,531		2,792,510
4	—		—		—	4	1		113,038		113,283
5	—		—		—	5	—		—		—

	116	$	9,090,934	$	10,185,476		125	$	9,077,007	$	10,148,126

(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 $1.1 billion and $1.0 billion of such non-consolidated senior interests as of June 30, 2016 and December 31, 2015, respectively.