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Loans Receivable, Net (Tables)

3 Months Ended

Mar. 31, 2019

Overall Statistics for Loans Receivable Portfolio

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

	March 31, 2019			December 31, 2018
Number of loans		122			125
Principal balance	$	14,603,831		$	14,293,970
Net book value	$	14,508,735		$	14,191,200
Unfunded loan commitments (1)	$	3,123,059		$	3,405,945
Weighted-average cash coupon (2)		5.63	%		5.67	%
Weighted-average all-in yield (2)		5.99	%		6.00	%
Weighted-average maximum maturity (years) (3)		3.8			3.9

(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 March 31, 2019, 99% of our loans by principal balance earned a floating rate of interest, primarily indexed to USD LIBOR, and 1% earned a fixed rate of interest. As of

December 31, 2018,

% of our loans by principal balance earned a floating rate of interest, primarily indexed to USD LIBOR, and

% earned a fixed rate of interest. Cash coupon and all-in yield assume applicable floating benchmark rates as of March 31, 2019 and December 31, 2018, 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 March 31, 2019, 65% of our loans by principal balance were subject to yield maintenance or other prepayment restrictions and 35% were open to repayment by the borrower without penalty. As of December 31, 2018, 75% of our loans 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):

				Deferred Fees /
	Principal Balance			Other Items (1)			Net Book Value
December 31, 2018	$	14,293,970		$	(102,770	)	$	14,191,200
Loan fundings		799,326			—			799,326
Loan repayments		(495,492	)		—			(495,492	)
Unrealized gain (loss) on foreign currency translation		6,027			(49	)		5,978
Deferred fees and other items		—			(5,501	)		(5,501	)
Amortization of fees and other items.		—			13,224			13,224
March 31, 2019	$	14,603,831		$	(95,096	)	$	14,508,735

(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

(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 $

449.5

million of such non-consolidated senior interests as of March 31, 2019.

(2)	Excludes investment exposure to the $ 1.0 billion 2018 Single Asset Securitization. See Note 4 for details of the subordinated risk retention interest we own in the 2018 Single Asset Securitization.

December 31, 2018
	Number of		Net Book		Total Loan		Percentage of
Property Type	Loans		Value		Exposure (1)(2)		Portfolio
Office		55	$	7,104,842	$	7,164,466		49	%
Hotel		18		2,591,565		2,673,763		18
Multifamily		34		2,193,699		2,206,740		15
Industrial		5		680,808		685,776		5
Retail		4		451,099		452,900		3
Condominium		4		304,545		368,104		2
Self-Storage		2		278,473		280,043		2
Other		3		586,169		909,052		6
		125	$	14,191,200	$	14,740,844		100	%

	Number of		Net Book		Total Loan		Percentage of
Geographic Location	Loans		Value		Exposure (1)(2)		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)

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 4 for details of the subordinated risk retention interest we own in the 2018 Single Asset Securitization.

Principal Balance and Net Book Value of Loans Receivable Based on Internal Risk Ratings

March 31, 2019							December 31, 2018
Risk	Number		Net Book		Total Loan		Risk		Number		Net Book		Total Loan
Rating	of Loans		Value		Exposure (1)(2)		Rating		of Loans		Value		Exposure (1)(2)
1		3	$	255,229	$	255,899		1		2	$	181,366	$	182,740
2		37		4,275,769		4,350,775		2		38		3,860,432		3,950,025
3		82		9,977,737		10,446,698		3		85		10,149,402		10,608,079
4		—		—		—		4		—		—		—
5		—		—		—		5		—		—		—
		122	$	14,508,735	$	15,053,372				125	$	14,191,200	$	14,740,844

(1)

449.5

million and $4

46.9

million of such non-consolidated senior interests as of March 31, 2019 and December 31, 2018, respectively.

(2)	Excludes investment exposure to the $ 1.0 billion 2018 Single Asset Securitization. See Note 4 for details of the subordinated risk retention interest we own in the 2018 Single Asset Securitization.