3. LOANS RECEIVABLE, NET

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


	December 31, 2018			December 31, 2017
Number of loans		125			110
Principal balance	$	14,293,970		$	10,108,226
Net book value	$	14,191,200		$	10,056,732
Unfunded loan commitments⁽¹⁾	$	3,405,945		$	1,573,107
Weighted-average cash coupon⁽²⁾		5.67	%		5.55	%
Weighted-average all-in yield⁽²⁾		6.00	%		5.95	%
Weighted-average maximum maturity (years)⁽³⁾		3.9			3.5

(1)

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.

(2)

As of December 31, 2018, 98% of our loans by principal balance earned a floating rate of interest, primarily indexed to USD LIBOR, and 2% earned a fixed rate of interest. As of December 31, 2017, 97% of our loans by principal balance earned a floating rate of interest, primarily indexed to USD LIBOR, and 3% earned a fixed rate of interest. Cash coupon and all-in yield assume applicable floating benchmark rates as of December 31, 2018 and December 31, 2017, respectively, for weighted-average calculation. 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.

(3)

Maximum maturity assumes all extension options are exercised by the borrower, however our loans may be repaid prior to such date. As of both December 31, 2018 and 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.

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		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

Loan fundings		7,890,051			—			7,890,051
Loan repayments		(3,035,383	)		—			(3,035,383	)
Loan contributed to securitization		(517,500	)		5,498			(512,002	)
Unrealized (loss) gain on foreign currency translation		(151,424	)		770			(150,654	)
Deferred fees and other items		—			(104,408	)		(104,408	)
Amortization of fees and other items		—			46,864			46,864

December 31, 2018	$	14,293,970		$	(102,770	)	$	14,191,200

(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, 2018
Property Type	Number of Loans		Net Book Value		Total Loan Exposure⁽¹⁾⁽²⁾		Percentage of Portfolio
Office		55	$	7,066,611	$	7,125,991		49	%
Hotel		18		2,541,283		2,623,161		18
Multifamily		34		1,961,522		1,973,084		13
Spanish Assets		1		1,124,174		1,131,334		8
Industrial		5		609,261		613,774		4
Retail		4		348,961		350,112		2
Self-Storage		2		277,318		278,880		2
Condominium		3		92,557		154,766		1
Other		3		169,513		489,742		3

		125	$	14,191,200	$	14,740,844		100	%


Geographic Location	Number of Loans		Net Book Value		Total Loan Exposure⁽¹⁾⁽²⁾		Percentage of Portfolio
United States
Northeast		32	$	4,322,114	$	4,359,938		31	%
West		29		3,137,072		3,222,706		22
Southeast		19		2,258,033		2,271,664		15
Midwest		9		1,161,637		1,170,619		8
Southwest		13		478,665		481,745		3
Northwest		4		238,844		239,872		2

Subtotal		106		11,596,365		11,746,544		81
International
Spain		1		1,124,174		1,131,334		8
United Kingdom		7		754,299		1,094,663		7
Canada		5		316,268		313,229		2
Australia		3		310,372		312,893		2
Belgium		1		70,621		71,007		—
Germany		1		11,585		63,637		—
Netherlands		1		7,516		7,537		—

Subtotal		19		2,594,835		2,994,300		19

Total		125	$	14,191,200	$	14,740,844		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 $446.9 million of such non-consolidated senior interests as of December 31, 2018.

(2)

Excludes investment exposure to the $1.0 billion 2018 Single Asset Securitization. See Note 5 for details of the subordinated risk retention interest we own in the 2018 Single Asset Securitization.


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):


December 31, 2018							December 31, 2017
Risk Rating	Number of Loans		Net Book Value		Total Loan Exposure⁽¹⁾⁽²⁾		Risk Rating	Number of Loans		Net Book Value		Total Loan Exposure⁽¹⁾
1		2	$	181,366	$	182,740	1		1	$	31,842	$	31,890
2		38		3,860,432		3,950,025	2		41		3,512,709		3,521,701
3		85		10,149,402		10,608,079	3		67		6,491,617		7,519,465
4		—		—		—	4		1		20,564		20,552
5		—		—		—	5		—		—		—

		125	$	14,191,200	$	14,740,844			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 $446.9 million and $985.4 million of such non-consolidated senior interests as of December 31, 2018 and December 31, 2017, respectively.

(2)	Excludes investment exposure to the $1.0 billion 2018 Single Asset Securitization. See Note 5 for details of the subordinated risk retention interest we own in the 2018 Single Asset Securitization.

The weighted-average risk rating of our total loan exposure was 2.7 as of both December 31, 2018 and 2017. We had one loan with a risk rating of “4” in our portfolio as of December 31, 2017, which was repaid in full in April 2018.

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

Multifamily Joint Venture

As discussed in Note 2, we entered into a Multifamily Joint Venture in April 2017. As of December 31, 2018 and December 31, 2017, our Multifamily Joint Venture held $334.6 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.