Secured Debt Agreements, Net (Tables)

12 Months Ended

Dec. 31, 2019

Schedule of Secured Debt Agreements

Our secured debt agreements include secured credit facilities, asset-specific financings, and a revolving credit agreement. The following table details our secured debt agreements ($ in thousands):

	Secured Debt Agreements Borrowings Outstanding
	December 31, 2019			December 31, 2018
Secured credit facilities	$	9,753,059		$	8,870,897
Asset-specific financings		330,879			81,739
Revolving credit agreement		—			43,845
Total secured debt agreements	$	10,083,938		$	8,996,481
Deferred financing costs(1)		(29,008	)		(21,725	)
Net book value of secured debt	$	10,054,930		$	8,974,756

(1) Costs incurred in connection with our secured debt agreements are recorded on our consolidated balance sheet when incurred and recognized as a component of interest expense over the life of each related agreement.

Credit Facilities

The following tables detail our secured credit facilities ($ in thousands):

	December 31, 2019
	Credit Facility Borrowings						Collateral Assets(2)
Lender	Potential(1)		Outstanding		Available(1)
Wells Fargo	$	2,056,769	$	2,018,057	$	38,712	$	2,621,806
Deutsche Bank		2,037,795		1,971,860		65,935		2,573,447
Barclays		1,629,551		1,442,083		187,468		2,044,654
Citibank		1,159,888		1,109,837		50,051		1,473,745
Bank of America		603,660		513,660		90,000		775,678
Morgan Stanley		524,162		468,048		56,114		706,080
Goldman Sachs		474,338		450,000		24,338		632,013
MetLife		417,677		417,677		—		536,553
Société Générale		333,473		333,473		—		437,130
US Bank - Multi. JV(3)		279,838		279,552		286		350,034
JP Morgan		303,288		259,062		44,226		386,545
Santander		239,332		239,332		—		299,597
Goldman Sachs - Multi. JV(3)		203,846		203,846		—		261,461
Bank of America - Multi. JV(3)		46,572		46,572		—		58,957
	$	10,310,189	$	9,753,059	$	557,130	$	13,157,700

(1) Potential borrowings represents the total amount we could draw under each facility based on collateral already approved and pledged. When undrawn, these amounts are immediately available to us at our sole discretion under the terms of each credit facility.

(2) Represents the principal balance of the collateral assets.

(3) These facilities finance the loan investments of our consolidated Multifamily Joint Venture. Refer to Note 2 for additional discussion of our Multifamily Joint Venture.

The weighted-average outstanding balance of our secured credit facilities was $8.8 billion for the year ended December 31, 2019. As of December 31, 2019, we had aggregate borrowings of $9.8 billion outstanding under our secured credit facilities, with a weighted-average cash coupon of LIBOR plus 1.60% per annum, a weighted-average all-in cost of credit, including associated fees and expenses, of LIBOR plus 1.79% per annum, and a weighted-average advance rate of 79.4%. As of December 31, 2019, outstanding borrowings under these facilities had a weighted-average maturity, including extension options, of 3.6 years.

	December 31, 2018
	Credit Facility Borrowings						Collateral Assets(2)
Lender	Potential(1)		Outstanding		Available(1)
Deutsche Bank	$	1,839,698	$	1,839,698	$	—	$	2,325,047
Wells Fargo		1,908,509		1,822,154		86,355		2,514,513
JP Morgan		1,010,628		1,010,628		—		1,266,259
Barclays		890,620		890,620		—		1,113,275
Citibank		852,470		663,917		188,553		1,076,085
Bank of America		873,446		873,446		—		1,090,117
MetLife		675,329		675,329		—		852,733
Morgan Stanley		341,241		276,721		64,520		457,496
Société Générale		321,182		321,182		—		404,048
Goldman Sachs		230,140		230,140		—		295,368
Goldman Sachs - Multi. JV(3)		170,060		170,060		—		212,983
Bank of America - Multi. JV(3)		97,002		97,002		—		121,636
	$	9,210,325	$	8,870,897	$	339,428	$	11,729,560

(1) Potential borrowings represents the total amount we could draw under each facility based on collateral already approved and pledged. When undrawn, these amounts are immediately available to us at our sole discretion under the terms of each credit facility.

(2) Represents the principal balance of the collateral assets.

(3) These facilities finance the loan investments of our consolidated Multifamily Joint Venture. Refer to Note 2 for additional discussion of our Multifamily Joint Venture.

Summary of Key Terms of Credit Facilities

The following tables outline the key terms of our credit facilities as of December 31, 2019:

Lender	Currency		Guarantee(1)			Margin Call(2)		Term/Maturity
Morgan Stanley		$ / £ / €		25	%		Collateral marks only		March 1, 2022
Goldman Sachs - Multi. JV(3)		$		25	%		Collateral marks only		July 12, 2022(6)
Bank of America - Multi. JV(3)		$		43	%		Collateral marks only		July 19, 2023(7)
Goldman Sachs		$		25	%		Collateral marks only		October 22, 2023(8)
JP Morgan		$ / £		50	%		Collateral marks only		January 7, 2024(9)
Bank of America		$		50	%		Collateral marks only		May 21, 2024(10)
Barclays		$ / £ / €		25	%		Collateral marks only		June 18, 2024(11)
MetLife		$		61	%		Collateral marks only		September 23, 2025(12)
Deutsche Bank		$ / €		59	%(4)		Collateral marks only		Term matched(13)
Citibank		$ / £ / € / A$ / C$		25	%		Collateral marks only		Term matched(13)
Société Générale		$ / £ / €		25	%		Collateral marks only		Term matched(13)
Santander		€		50	%		Collateral marks only		Term matched(13)
Wells Fargo		$ / C$		25	%(5)		Collateral marks only		Term matched(13)
US Bank - Multi. JV(3)		$		25	%		Collateral marks only		Term matched(13)

(1) Other than amounts guaranteed based on specific collateral asset types, borrowings under our credit facilities are non-recourse to us.

(2) Margin call provisions under our credit facilities do not permit valuation adjustments based on capital markets events, and are limited to collateral-specific credit marks.

(3) These facilities finance the loan investments of our consolidated Multifamily Joint Venture. Refer to Note 2 for additional discussion of our Multifamily Joint Venture.

(4) Specific borrowings outstanding of $951.6 million are 100% guaranteed. The remainder of the credit facility borrowings are 25% guaranteed.

(5) In addition to the 25% guarantee across all borrowings, there is an incremental guarantee of $148.3 million related to $197.7 million of specific borrowings outstanding.

(6) Includes a one-year extension option which may be exercised at our sole discretion. 

(7) Includes two one-year extension options which may be exercised at our sole discretion.

(8) Includes two one-year extension options which may be exercised at our sole discretion.

(9) Includes two one-year extension options which may be exercised at our sole discretion.

(10) Includes two one-year extension options which may be exercised at our sole discretion.

(11) Includes four one-year extension options which may be exercised at our sole discretion.

(12) Includes five one-year extension options which may be exercised at our sole discretion.

(13) These secured credit facilities have various availability periods during which new advances can be made and which are generally subject to each lender’s discretion. Maturity dates for advances outstanding are tied to the term of each respective collateral asset.

Currency		Potential Borrowings(1)		Outstanding Borrowings		Floating Rate Index(2)		Spread		Advance Rate(3)
	$	$	6,710,218	$	6,186,958		USD LIBOR		L + 1.60%		79.6%
	€	€	2,155,130	€	2,125,716		EURIBOR		E + 1.41%		80.0%
	£	£	712,583	£	711,900		GBP LIBOR		L + 1.99%		77.4%
	A$	A$	255,270	A$	255,270		BBSY		BBSY + 1.90%		78.0%
	C$	C$	77,329	C$	77,349		CDOR		CDOR + 1.80%		78.4%
		$	10,310,189	$	9,753,059				INDEX + 1.60%		79.4%

(1) Potential borrowings represents the total amount we could draw under each facility based on collateral already approved and pledged. When undrawn, these amounts are immediately available to us at our sole discretion under the terms of each credit facility.

(2) Floating rate indices are generally matched to the payment timing under the terms of each secured credit facility and its respective collateral assets.

(3) Represents weighted-average advance rate based on the approved outstanding principal balance of the collateral assets pledged.

Summary of Asset-Specific Financings

The following tables detail our asset-specific financings ($ in thousands):  

	December 31, 2019
Asset-Specific Financings	Count		Principal Balance		Book Value		Wtd. Avg. Yield/Cost(1)			Guarantee(2)		Wtd. Avg. Term(3)
Collateral assets		4	$	429,983	$	417,820		L+4.90	%		n/a		Mar. 2023
Financing provided		4	$	330,879	$	323,504		L+3.42	%	$	97,930		Mar. 2023

	December 31, 2018
Asset-Specific Financings	Count		Principal Balance		Book Value		Wtd. Avg. Yield/Cost(1)			Guarantee(2)		Wtd. Avg. Term(3)
Collateral assets		1	$	106,739	$	104,807		L+6.08	%		n/a		Aug. 2022
Financing provided		1	$	81,739	$	80,938		L+4.07	%	$	—		Aug. 2022

(1) These floating rate loans and related liabilities are indexed to the various benchmark rates relevant in each arrangement in terms of currency and payment frequency. Therefore the net exposure to each benchmark rate is in direct proportion to our net assets indexed to that rate. In addition to cash coupon, yield/cost includes the amortization of deferred origination fees / financing costs.

(2) Other than amounts guaranteed on an asset-by-asset basis, borrowings under our asset-specific financings are non-recourse to us.

(3) The weighted-average term is determined based on the maximum maturity of the corresponding loans, assuming all extension options are exercised by the borrower. Each of our asset-specific financings is term-matched to the corresponding collateral loans.