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Loans Receivable, Net (Tables)
 9 Months Ended
Sep. 30, 2019
Receivables [Abstract]  
Overall Statistics for Loans Receivable Portfolio
The following table details overall statistics for our loans receivable portfolio ($ in thousands):
 
                 
 
September 30, 2019
   
December 31, 2018
 
Number of loans
   
128
     
125
 
Principal balance
  $
14,849,556
    $
14,293,970
 
Net book value
  $
14,755,072
    $
14,191,200
 
Unfunded loan commitments
(1)
   $
4,724,809
    $
3,405,945
 
Weighted-average cash coupon
(2)
    
5.07
 %    
5.67
 %
Weighted-average
all-in
yield
(2)
    
5.42
 %    
6.00
 %
Weighted-average maximum maturity
 
(years)
(3)
    
3.6
     
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)
 
Cash coupon and
all-in
yield assume applicable floating benchmark rates, which include USD LIBOR, GBP LIBOR, EURIBOR, BBSY, and CDOR, as of September 30, 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. As of September 30, 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. In addition, $3.5 billion of our loans earned interest based on floors that are above the applicable index as of September 30, 2019. 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.
In addition, $1.2 billion of our loans earned interest based on floors that are above the applicable index as of December 31, 2018.
 
(3)
 
Maximum maturity assumes all extension options are exercised by the borrower, however our loans may be repaid prior to such date. As of September 30, 2019, 59% of our loans by principal balance were subject to yield maintenance or other prepayment restrictions and 41% 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):
 
 
                         
 
Principal
Balance
   
Deferred Fees /
Other Items
(1)
    
Net Book

Value
 
December 31, 2018
  $
14,293,970
    $
 
 
 
 
(102,770
 )   $
14,191,200
 
Loan fundings
   
3,319,563
     
—  
      
3,319,563
 
Loan repayments 
and sales proceeds
    
(2,640,402
 )    
—  
      
(2,640,402
 )
Unrealized (loss) gain on foreign currency translation
   
(123,575
 )    
1,085
     
(122,490
 )
Deferred fees and other items
   
—  
      
(32,527
 )    
(32,527
 )
Amortization of fees and other items
   
—  
      
39,728
     
39,728
 
                         
September 30, 2019
  $
14,849,556
    $
(94,484
 )   $
14,755,072
 
                         
                        
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                     
(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):
 
                             
September 30, 2019
 
Property Type
  
Number of
Loans
 
Net Book
Value
   
Total Loan
Exposure
(1)(2)
  
 
  
Percentage of
Portfolio
 
Office
 
  59
  $
7,654,154
    $
 
7,838,768
 
 
  
    50%
 
Hotel
 
  17
   
2,367,575
     
2,444,738
 
 
  
    16    
 
Multifamily
 
  37
   
2,272,220
     
2,312,100
 
 
  
    15    
 
Industrial
 
    5
   
700,751
     
704,098
 
 
  
      5    
 
Retail
 
    3
   
381,451
     
388,138
 
 
  
      3    
 
Self-Storage
 
    2
   
280,880
     
281,593
 
 
  
      2    
 
Condominium
 
    1
   
223,908
     
225,116
 
 
  
      1    
 
Other
 
    4
   
874,133
     
1,188,383
 
 
  
      8    
 
                     
 
    
 
 
128
   $
    14,755,072
     $
 
    15,382,934
  
 
  
100%
 
                     
 
    
 
                 
 
    
 
Geographic Location
  
Number of
Loans
 
Net Book
Value
   
Total Loan
Exposure
(1)(2)
  
 
  
Percentage of
Portfolio
 
United States
  
   
     
 
 
  
Northeast
 
  29
  $
 
4,069,651
    $
4,097,215
 
 
  
    27%
 
West
 
  29
   
3,186,197
     
3,370,213
 
 
  
    22    
 
Southeast
 
  19
   
2,212,190
     
2,222,654
 
 
  
    14    
 
Midwest
 
  11
   
1,283,170
     
1,289,119
 
 
  
      8    
 
Southwest
 
  13
   
626,893
     
630,498
 
 
  
      4    
 
Northwest
 
    4
   
177,295
     
177,900
 
 
  
      1    
 
                     
 
    
 
Subtotal
 
105
   
11,555,396
     
11,787,599
 
 
  
    76    
 
International
  
   
     
 
 
  
United Kingdom
 
  11
   
1,331,763
     
1,667,035
 
 
  
    11    
 
Spain
 
    2
   
1,109,276
     
1,115,580
 
 
  
      7    
 
Australia
 
    3
   
337,107
     
338,975
 
 
  
      2    
 
Germany
 
    1
   
189,016
     
241,106
 
 
  
      2    
 
Canada
 
    4
   
148,291
     
147,880
 
 
  
      1    
 
Belgium
 
    1
   
84,223
     
84,759
 
 
  
      1    
 
Ireland
 
     1
 
 
—
 
 
 
—
 
 
 
—
 
                     
 
    
 
Subtotal
 
  23
   
3,199,676
     
3,595,335
 
 
  
    24    
 
                     
 
    
 
Total
 
128
  $
14,755,072
    $
15,382,934
 
 
  
  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 $533.4 million of such
non-consolidated
senior interests as of September 30, 2019.
  
(2)
 
Excludes investment exposure to the $
993.5
 million 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
 
Property Type
  
Number of
Loans
 
Net Book

Value
   
Total Loan
Exposure
(1)(2)
    
Percentage of
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%
 
                           
 
                     
 
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 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
The following table allocates the principal balance and net book value of our loans receivable based on our internal risk ratings ($ in thousands):
 
         
 
 
 
 
 
 
 
 
 
 
 
 
                                               
   
September 30, 2019
 
 
December 31, 2018
 
Risk Rating
   
Number of Loans
 
Net Book Value
   
Total Loan Exposure
(1)(2)
  
 
Number of Loans
 
Net Book Value
   
Total Loan Exposure
(1)(2)
  
 
1  
    
     4
  $
275,921
    $
  
276,178
 
 
 
 
 
 
    2
  $
181,366
    $
182,740
 
 
2  
    
   39
   
4,536,225
     
4,564,094
 
 
 
 
 
 
 
 38
   
3,860,432
     
3,950,025
 
 
3  
    
   82
   
9,776,127
     
10,375,349
 
 
 
 
 
 
  85
   
10,149,402
     
10,608,079
 
 
4  
    
     3
   
166,799
     
167,313
 
 
 
 
 
 
—  
    
—  
      
—  
  
 
5  
    
        —
 
 
 
 
 
    
—
     
—
 
 
 
 
 
 
—  
    
—  
      
—  
  
                                               
 
   
128
  $
14,755,072
    $
15,382,934
 
 
 
 
 
 
125
   $
14,191,200
    $
14,740,844
 
                                               
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
____________
 
 
(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 $533.4 million and $446.9 million of such
non-consolidated
senior interests as of September 30, 2019 and December 31, 2018, respectively.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(2)		 Excludes investment exposure to the $
993.5
 million and $1.0 billion 2018 Single Asset Securitization as of September 30, 2019 and December 31, 2018, respectively. See Note 4 for details of the subordinated risk retention interest we own in the 2018 Single Asset Securitization.