3. LOANS RECEIVABLE, NET

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


	December 31, 2017			December 31, 2016
Number of loans		110			107
Principal balance	$	10,108,226		$	8,727,218
Net book value	$	10,056,732		$	8,692,978
Unfunded loan commitments⁽¹⁾	$	1,573,107		$	882,472
Weighted-average cash coupon⁽²⁾		5.55	%		5.01	%
Weighted-average all-in yield⁽²⁾		5.95	%		5.36	%
Weighted-average maximum maturity (years)⁽³⁾		3.5			3.2

(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 December 31, 2017, our floating rate loans were indexed to various benchmark rates, with 92% of floating rate loans by principal balance indexed to USD LIBOR. 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, and purchase discounts, as well as the accrual of exit fees. Cash coupon and all-in yield assume applicable floating benchmark rates as of December 31, 2017 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 December 31, 2017, 75% of our loans by principal balance were subject to yield maintenance or other prepayment restrictions and 25% 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.

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		3,151,882			—			3,151,882
Loan repayments		(3,374,622	)		—			(3,374,622	)
Unrealized (loss) gain on foreign currency translation		(158,403	)		1,466			(156,937	)
Deferred fees and other items		—			(44,697	)		(44,697	)
Amortization of fees and other items		—			40,345			40,345

December 31, 2016	$	8,727,218		$	(34,240	)	$	8,692,978

Loan fundings		4,072,786			—			4,072,786
Loan repayments		(2,828,610	)		—			(2,828,610	)
Unrealized gain (loss) on foreign currency translation		136,832			(186	)		136,646
Deferred fees and other items		—			(55,441	)		(55,441	)
Amortization of fees and other items		—			38,373			38,373

December 31, 2017	$	10,108,226		$	(51,494	)	$	10,056,732

(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):


December 31, 2017
Property Type	Number of Loans		Net Book Value		Total Loan Exposure⁽¹⁾		Percentage of Portfolio
Office		53	$	5,773,972	$	5,807,170		53	%
Hotel		15		1,830,568		1,905,497		17
Multifamily		25		1,220,423		1,228,959		11
Retail		6		487,473		940,980		8
Condominium		2		142,342		268,751		2
Other		9		601,954		942,251		9

		110	$	10,056,732	$	11,093,608		100	%


Geographic Location	Number of Loans		Net Book Value		Total Loan Exposure⁽¹⁾		Percentage of Portfolio
United States
Northeast		26	$	2,857,948	$	2,871,219		26	%
West		29		2,672,069		2,816,276		24
Southeast		17		2,007,202		2,470,992		22
Midwest		9		856,559		862,578		8
Southwest		10		380,204		380,120		3
Northwest		2		283,381		286,221		3

Subtotal		93		9,057,363		9,687,406		86
International
United Kingdom		6		440,317		794,789		7
Canada		7		415,893		412,343		4
Belgium		1		73,779		74,431		1
Germany		1		12,237		67,399		1
Netherlands		2		57,143		57,240		1

Subtotal		17		999,369		1,406,202		14

Total		110	$	10,056,732	$	11,093,608		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 $985.4 million of such non-consolidated senior interests as of December 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	17		817,387		819,781		8
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):


December 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	1		$	31,842		$	31,890		1		8		$	361,100		$	361,574
2	41			3,512,709			3,521,701		2		52			4,011,992			4,083,678
3	67			6,491,617			7,519,465		3		46			4,299,026			5,290,668
4	1			20,564			20,552		4		1			20,860			20,814
5	—			—			—		5		—			—			—

	110		$	10,056,732		$	11,093,608				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 $985.4 million and $1.0 billion of such non-consolidated senior interests as of December 31, 2017 and December 31, 2016, respectively.

The weighted-average risk rating of our total loan exposure was 2.7 and 2.5 as of December 31, 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 December 31, 2017 or 2016.

Multifamily Joint Venture

As discussed in Note 2, we entered into a Multifamily Joint Venture in April 2017. As of December 31, 2017, our Multifamily Joint Venture held $182.2 million of loans, which are included in the loan disclosures above. Refer to Note 2 for additional discussion of our Multifamily Joint Venture.