Loans Receivable, Net (Tables)

6 Months Ended

Jun. 30, 2018

Overall Statistics for Loans Receivable Portfolio

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


	June 30, 2018			December 31, 2017
Number of loans		107			110
Principal balance	$	12,303,596		$	10,108,226
Net book value	$	12,214,565		$	10,056,732
Unfunded loan commitments⁽¹⁾	$	2,990,380		$	1,573,107
Weighted-average cash coupon⁽²⁾		5.52	%		5.55	%
Weighted-average all-in yield⁽²⁾		5.85	%		5.95	%
Weighted-average maximum maturity (years)⁽³⁾		4.1			3.5

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, 2017	$	10,108,226		$	(51,494)		$	10,056,732
Loan fundings		4,200,035			—			4,200,035
Loan repayments		(1,913,236	)		—			(1,913,236	)
Unrealized gain (loss) on foreign currency translation		(91,429	)		502			(90,927	)
Deferred fees and other items		—			(62,200	)		(62,200	)
Amortization of fees and other items		—			24,161			24,161

June 30, 2018	$	12,303,596		$	(89,031	)	$	12,214,565


(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, 2018
Property Type	Number of Loans	Net Book Value		Total Loan Exposure⁽¹⁾		Percentage of Portfolio
Office	49	$	5,938,663	$	5,990,592	47%
Hotel	14		2,211,798		2,292,082	18
Multifamily	27		1,553,570		1,561,517	12
Spanish Assets	1		1,159,765		1,168,400	9
Retail	5		423,951		424,841	3
Condominium	2		124,777		216,634	2
Other	9		802,041		1,138,853	9

	107	$	12,214,565	$	12,792,919	100%


Geographic Location	Number of Loans	Net Book Value		Total Loan Exposure⁽¹⁾		Percentage of Portfolio
United States
Northeast	33	$	4,188,084	$	4,226,766	32%
West	24		2,355,486		2,463,864	19
Southeast	18		2,121,488		2,133,466	17
Midwest	6		827,600		833,003	7
Southwest	11		505,127		508,564	4
Northwest	1		128,109		128,607	1

Subtotal	93		10,125,894		10,294,270	80
International
Spain	1		1,159,765		1,168,400	9
United Kingdom	5		499,028		848,918	7
Canada	5		331,975		329,004	3
Belgium	1		71,926		72,441	1
Germany	1		11,958		65,864	—
Netherlands	1		14,019		14,022	—

Subtotal	14		2,088,671		2,498,649	20

Total	107	$	12,214,565	$	12,792,919	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 $489.3 million of such non-consolidated senior interests as of June 30, 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.

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, 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	1	$	52,476	$	52,500		1	1	$	31,842	$	31,890
	2	36		3,807,971		3,826,692		2	41		3,512,709		3,521,701
	3	70		8,354,118		8,913,727		3	67		6,491,617		7,519,465
	4	—		—		—		4	1		20,564		20,552
	5	—		—		—		5	—		—		—

		107	$	12,214,565	$	12,792,919			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 $489.3 million and $985.4 million of such non-consolidated senior interests as of June 30, 2018 and December 31, 2017, respectively.

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 84% and 92% of our floating rate loans by principal balance indexed to USD LIBOR as of June 30, 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 June 30, 2018, 77% of our loans by principal balance were subject to yield maintenance or other prepayment restrictions and 23% 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.