18. COMMITMENTS AND CONTINGENCIES

Unfunded Commitments Under Loans Receivable

As of December 31, 2018, we had unfunded commitments of $3.4 billion related to 91 loans receivable, which amounts will generally 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.

Principal Debt Repayments

Our contractual principal debt repayments as of December 31, 2018 were as follows ($ in thousands):


			Payment Timing
	Total Obligation		Less Than 1 Year		1 to 3 Years		3 to 5 Years		More Than 5 Years
Principal repayments under secured debt agreements⁽¹⁾	$	8,996,481	$	265,141	$	3,127,661	$	5,206,541	$	397,138
Principal repayments of convertible notes⁽²⁾		622,500		—		—		622,500		—

Total⁽³⁾	$	9,618,981	$	265,141	$	3,127,661	$	5,829,041	$	397,138

(1)	The allocation of repayments under our secured debt agreements is based on the earlier of (i) the maturity date of each facility, or (ii) the maximum maturity date of the collateral loans, assuming all extension options are exercised by the borrower.

(2)	Reflects the outstanding principal balance of convertible notes, excluding any potential conversion premium. Refer to Note 9 for further details on our convertible notes.

(3)	As of December 31, 2018, the total does not include $94.5 million of loan participations sold, $446.9 million of non-consolidated senior interests, and $1.3 billion of securitized debt obligations, as the satisfaction of these liabilities will not require cash outlays from us.

Litigation

From time to time, we may be involved in various claims and legal actions arising in the ordinary course of business. As of December 31, 2018, we were not involved in any material legal proceedings.

Board of Directors’ Compensation

As of December 31, 2018, of the eight members of our board of directors, our five independent directors are entitled to annual compensation of $175,000 each, $75,000 of which will be paid in the form of cash and $100,000 in the form of deferred stock units. The other three board members, including our chairman and our chief executive officer, are not compensated by us for their service as directors. In addition, (i) the chair of our audit committee receives additional annual cash compensation of $20,000, (ii) the other members of our audit committee receive additional annual cash compensation of $10,000, and (iii) the chairs of each of our compensation and corporate governance committees receive additional annual cash compensation of $10,000.