3. LOANS RECEIVABLE, NET

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


	March 31, 2018			December 31, 2017
Number of loans		106			110
Principal balance	$	11,140,975		$	10,108,226
Net book value	$	11,081,716		$	10,056,732
Unfunded loan commitments⁽¹⁾	$	1,473,112		$	1,573,107
Weighted-average cash coupon⁽²⁾		5.50	%		5.55	%
Weighted-average all-in yield⁽²⁾		5.88	%		5.95	%
Weighted-average maximum maturity (years)⁽³⁾		3.7			3.5

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


	Principal Balance			Deferred Fees / Other Items⁽¹⁾			Net Book Value
December 31, 2017	$	10,108,226		$	(51,494)		$	10,056,732
Loan fundings		1,978,213			—			1,978,213
Loan repayments		(952,146	)		—			(952,146	)
Unrealized gain (loss) on foreign currency translation		6,682			(113	)		6,569
Deferred fees and other items		—			(18,881	)		(18,881	)
Amortization of fees and other items		—			11,229			11,229

March 31, 2018	$	11,140,975		$	(59,259	)	$	11,081,716


(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):


March 31, 2018
Property Type	Number of Loans	Net Book Value		Total Loan Exposure⁽¹⁾		Percentage of Portfolio
Office	52	$	5,725,784	$	5,756,444	48%
Hotel	14		1,569,512		1,646,238	14
Multifamily	25		1,481,524		1,489,938	12
Spanish Assets	1		1,220,214		1,230,000	10
Retail	5		446,482		908,160	7
Condominium	2		149,137		262,175	2
Other	7		489,063		843,928	7

	106	$	11,081,716	$	12,136,883	100%


Geographic Location	Number of Loans	Net Book Value		Total Loan Exposure⁽¹⁾		Percentage of Portfolio
United States
Northeast	27	$	3,179,789	$	3,191,691	26%
Southeast	17		2,048,670		2,520,778	21
West	27		2,322,490		2,451,827	20
Midwest	8		753,689		759,148	6
Southwest	9		309,161		310,928	3
Northwest	1		264,167		266,724	2

Subtotal	89		8,877,966		9,501,096	78
International
Spain	1		1,220,214		1,230,000	10
United Kingdom	6		458,081		825,497	7
Canada	6		389,147		386,131	3
Belgium	1		75,655		76,260	1
Germany	1		12,671		69,891	1
Netherlands	2		47,982		48,008	—

Subtotal	17		2,203,750		2,635,787	22

Total	106	$	11,081,716	$	12,136,883	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 $995.9 million of such non-consolidated senior interests as of March 31, 2018.


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.

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):


March 31, 2018							December 31, 2017
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	2	$	68,967	$	69,057		1	1	$	31,842	$	31,890
	2	34		3,135,997		3,148,059		2	41		3,512,709		3,521,701
	3	70		7,876,752		8,919,767		3	67		6,491,617		7,519,465
	4	—		—		—		4	1		20,564		20,552
	5	—		—		—		5	—		—		—

		106	$	11,081,716	$	12,136,883			110	$	10,056,732	$	11,093,608

(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 $995.9 million and $985.4 million of such non-consolidated senior interests as of March 31, 2018 and December 31, 2017, respectively.

The weighted-average risk rating of our total loan exposure was 2.7 as of both March 31, 2018 and December 31, 2017. The risk rating of one of the loans in our portfolio with a net book value of $20.5 million was upgraded from a “4” as of December 31, 2017 to a “3” as of March 31, 2018. This loan was repaid in full in April 2018.

We did not have any impaired loans, nonaccrual loans, or loans in maturity default as of March 31, 2018 or December 31, 2017.

Multifamily Joint Venture

As discussed in Note 2, we entered into a Multifamily Joint Venture in April 2017. As of March 31, 2018 and December 31, 2017, our Multifamily Joint Venture held $155.3 million and $182.2 million of loans, respectively, 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 our borrowers’ construction or development of real estate-related assets, capital improvements of existing assets, or lease-related expenditures. These commitments will generally be funded over the term of each loan, subject in certain cases to an expiration date.

Our floating rate loans are indexed to various benchmark rates, with 82% and 92% of our floating rate loans by principal balance indexed to USD LIBOR as of March 31, 2018 and December 31, 2017, respectively. 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 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, 2018, 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, 2017, 75% of our loans were subject to yield maintenance or other prepayment restrictions and 25% were open to repayment by the borrower without penalty.