| Overall Statistics for Loans Receivable Portfolio |
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 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, 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.
|
|
| 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):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 $985.4 million of
such non-consolidated senior
interests as of December 31, 2017.
|
|
| Principal Balance and Net Book Value of Loans Receivable Based on Internal Risk Ratings |
The following table allocates the principal balance
and net book value of our loans receivable based on our internal
risk ratings ($ in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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.
|
|