3. LOANS RECEIVABLE, NET

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


	September 30, 2017			December 31, 2016
Number of loans		111			107
Principal balance	$	9,681,055		$	8,727,218
Net book value	$	9,637,152		$	8,692,978
Unfunded loan commitments⁽¹⁾	$	1,622,216		$	882,472
Weighted-average cash coupon⁽²⁾		5.30	%		5.01	%
Weighted-average all-in yield⁽²⁾		5.68	%		5.36	%
Weighted-average maximum maturity (years)⁽³⁾		3.4			3.2

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		2,789,341			—			2,789,341
Loan repayments		(1,970,743	)		—			(1,970,743	)
Unrealized gain (loss) on foreign currency translation		135,239			(116	)		135,123
Deferred fees and other items		—			(38,434	)		(38,434	)
Amortization of fees and other items		—			28,887			28,887

September 30, 2017	$	9,681,055		$	(43,903	)	$	9,637,152


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

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


September 30, 2017
Property Type	Number of Loans	Net Book Value		Total Loan Exposure⁽¹⁾		Percentage of Portfolio
Office	55	$	5,781,675	$	5,814,214	54%
Hotel	14		1,713,162		1,784,893	17
Retail	7		539,752		982,270	9
Multifamily	17		762,969		767,875	7
Condominium	2		129,421		273,112	3
Manufactured housing	7		232,148		231,856	2
Other	9		478,025		814,457	8

	111	$	9,637,152	$	10,668,677	100%


Geographic Location	Number of Loans	Net Book Value		Total Loan Exposure⁽¹⁾		Percentage of Portfolio
United States
Northeast	26	$	2,680,546	$	2,694,018	25%
West	28		2,470,097		2,629,456	24
Southeast	21		1,964,534		2,414,994	23
Midwest	8		890,546		894,564	8
Southwest	8		291,792		290,393	3
Northwest	2		249,118		251,422	2

Subtotal	93		8,546,633		9,174,847	85
International
United Kingdom	7		486,794		838,763	8
Canada	7		462,832		458,619	4
Belgium	1		72,544		73,247	1
Germany	1		12,114		66,810	1
Netherlands	2		56,235		56,391	1

Subtotal	18		1,090,519		1,493,830	15

Total	111	$	9,637,152	$	10,668,677	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 $987.6 million of such non-consolidated senior interests as of September 30, 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.

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, debt yield, 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):


September 30, 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	4	$	421,313	$	421,628		1	8	$	361,100	$	361,574
	2	49		3,701,801		3,708,603		2	52		4,011,992		4,083,678
	3	57		5,493,409		6,517,829		3	46		4,299,026		5,290,668
	4	1		20,629		20,617		4	1		20,860		20,814
	5	—		—		—		5	—		—		—

		111	$	9,637,152	$	10,668,677			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 $987.6 million and $1.0 billion of such non-consolidated senior interests as of September 30, 2017 and December 31, 2016, respectively.

The weighted-average risk rating of our total loan exposure was 2.6 and 2.5 as of September 30, 2017 and December 31, 2016, respectively. The increase in weighted-average risk rating was primarily driven by repayments of loans with lower risk ratings, and not rating downgrades in the existing portfolio.

We did not have any impaired loans, nonaccrual loans, or loans in maturity default as of September 30, 2017 or December 31, 2016.

Multifamily Joint Venture

As discussed in Note 2, we entered into a Multifamily Joint Venture in April 2017. As of September 30, 2017, our Multifamily Joint Venture held $146.1 million of loans, which are included in the loan disclosures above. Refer to Note 2 for additional discussion of our Multifamily Joint Venture.

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 September 30, 2017, our floating rate loans were indexed to various benchmark rates, with 91% of floating rate loans by principal balance indexed to USD LIBOR. In addition, $273.9 million of our floating rate loans earned interest based on floors that are above the applicable index, with an average floor of 1.24%, as of September 30, 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 and extension fees, loan origination costs, purchase discounts, and accrual of 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 September 30, 2017, 72% of our loans by principal balance were subject to yield maintenance or other prepayment restrictions and 28% 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.