Loans Receivable, Net (Tables)

3 Months Ended

Mar. 31, 2017

Overall Statistics for Loans Receivable Portfolio

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


	March 31, 2017			December 31, 2016
Number of loans		103			107
Principal balance	$	8,759,696		$	8,727,218
Net book value	$	8,721,768		$	8,692,978
Unfunded loan commitments⁽¹⁾	$	1,149,842		$	882,472
Weighted-average cash coupon⁽²⁾		5.15	%		5.01	%
Weighted-average all-in yield⁽²⁾		5.57	%		5.36	%
Weighted-average maximum maturity (years)⁽³⁾		3.3			3.2

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, 2016	$	8,727,218		$	(34,240)		$	8,692,978
Loan fundings		702,353			—			702,353
Loan repayments		(695,758	)		—			(695,758	)
Unrealized gain (loss) on foreign currency translation		25,883			(67	)		25,816
Deferred fees and other items⁽¹⁾		—			(12,429	)		(12,429	)
Amortization of fees and other items⁽¹⁾		—			8,808			8,808

March 31, 2017	$	8,759,696		$	(37,928	)	$	8,721,768


(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):


March 31, 2017
Property Type	Number of Loans	Net Book Value		Total Loan Exposure⁽¹⁾		Percentage of Portfolio
Office	54	$	4,808,211	$	4,833,513	50%
Hotel	16		2,104,014		2,175,505	22
Retail	7		524,318		944,818	10
Multifamily	8		515,170		517,376	5
Manufactured housing	9		295,559		295,359	3
Condominium	1		49,276		226,478	2
Other	8		425,220		740,328	8

	103	$	8,721,768	$	9,733,377	100%


Geographic Location	Number of Loans	Net Book Value		Total Loan Exposure⁽¹⁾		Percentage of Portfolio
United States
Northeast	24	$	2,493,379	$	2,510,088	26%
West	23		1,998,995		2,185,476	22
Southeast	20		1,453,309		1,877,334	19
Midwest	7		702,238		704,199	7
Southwest	7		318,348		317,136	3
Northwest	2		215,617		218,088	2

Subtotal	83		7,181,886		7,812,321	79
International
United Kingdom	9		983,679		1,317,265	14
Canada	8		494,223		490,326	5
Germany	1		11,271		62,510	1
Netherlands	2		50,709		50,955	1

Subtotal	20		1,539,882		1,921,056	21

Total	103	$	8,721,768	$	9,733,377	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 March 31, 2017.


December 31, 2016
Property Type	Number of Loans		Net Book Value		Total Loan Exposure⁽¹⁾		Percentage of Portfolio
Office		55	$	4,800,609	$	4,889,456		50%
Hotel		18		1,889,732		1,957,334		20
Retail		9		769,813		1,173,592		12
Multifamily		8		521,097		523,529		5
Manufactured housing		9		296,290		296,252		3
Condominium		2		66,070		258,360		3
Other		6		349,367		658,211		7

		107	$	8,692,978	$	9,756,734		100%


Geographic Location	Number of Loans		Net Book Value		Total Loan Exposure⁽¹⁾		Percentage of Portfolio
United States
Northeast		26	$	2,548,257	$	2,562,149		26%
Southeast		21		1,492,530		1,899,748		19
West		22		1,628,811		1,828,667		19
Midwest		7		695,713		698,093		7
Southwest		8		380,639		379,766		4
Northwest		3		227,747		293,564		3

Subtotal		87		6,973,697		7,661,987		78
International
United Kingdom		9		977,136		1,305,816		13
Canada		8		487,835		483,923		5
Germany		1		204,241		254,644		3
Netherlands		2		50,069		50,364		1

Subtotal		20		1,719,281		2,094,747		22

Total		107	$	8,692,978	$	9,756,734		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, 2016.

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):


March 31, 2017							December 31, 2016
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	6	$	303,849	$	304,170		1	8	$	361,100	$	361,574
	2	47		3,670,002		3,679,119		2	52		4,011,992		4,083,678
	3	49		4,727,107		5,729,339		3	46		4,299,026		5,290,668
	4	1		20,810		20,749		4	1		20,860		20,814
	5	—		—		—		5	—		—		—

		103	$	8,721,768	$	9,733,377			107	$	8,692,978	$	9,756,734

(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 both March 31, 2017 and December 31, 2016.

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.

As of March 31, 2017, our floating rate loans were indexed to various benchmark rates, with 84% of floating rate loans by principal balance indexed to USD LIBOR. In addition, $217.8 million of our floating rate loans earned interest based on floors that are above the applicable index, with an average floor of 1.22%, as of March 31, 2017. As of December 31, 2016, our floating rate loans were indexed to various benchmark rates, with 84% of floating rate loans indexed to USD LIBOR. In addition, $216.3 million of our floating rate loans earned interest based on floors that are above the applicable index, with an average floor of 1.27%, as of December 31, 2016. 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 rates for weighted-average calculation.

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, 2017, 59% of our loans by principal balance were subject to yield maintenance or other prepayment restrictions and 41% were open to repayment by the borrower without penalty. As of December 31, 2016, 64% of our loans were subject to yield maintenance or other prepayment restrictions and 36% were open to repayment by the borrower without penalty.