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Commitments and Contingencies
 3 Months Ended
Mar. 31, 2020
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies
17. COMMITMENTS AND CONTINGENCIES
Impact of
COVID-19
As further discussed in Note 2, the full extent of the impact of
COVID-19
on the global economy generally, and our business in particular, is uncertain. As of March 31, 2020, no contingencies have been recorded on our consolidated balance sheet as a result of
COVID-19,
however as the global pandemic continues and the economic implications worsen, it may have long-term impacts on our financial condition, results of operations, and cash flows. Refer to Note 2 for further discussion of
COVID-19.
Unfunded Commitments Under Loans Receivable
As of March 31, 2020, we had unfunded commitments of
 
$3.9 billion related to 94 loans receivable
.
We generally finance the funding of our loan commitments on terms consistent with our overall credit facilities, with an average advance rate of
79.0%
 
for such financed loans, resulting in identified financing for
 
$2.4 billion of our aggregate unfunded loan commitments as of March 31, 2020. Some of our lenders, including substantially all of our financing of construction loans, are contractually obligated to fund their ratable portion of these loan commitments over time, while other lenders have some degree of discretion over future loan funding obligations. We expect to fund our loan commitments over the tenor of these loans, which have a weighted-average future funding period of 4.0 years. Our future loan
fundings
comprise funding for capital expenditures and construction, leasing costs, and interest and carry costs, and will vary depending on the progress of capital projects, leasing, and cash flows at the assets underlying our loans. Therefore, the exact timing and amounts of such future loan
fundings
are uncertain and will depend on the current and future performance of the underlying collateral assets. As a result of the
COVID-19
pandemic, the progress of capital expenditures, construction, and leasing is anticipated to be slower than otherwise expected, and the pace of future funding relating to these capital needs may be commensurately slower.
Principal Debt Repayments
Our contractual principal debt repayments as of March 31, 2020 were as follows ($ in thousands):
                                         
 
 
  
Payment Timing
 
 
Total
 
  
Less Than
 
  
1 to 3
 
  
3 to 5
 
  
More
 
Than
 
 
Obligation
 
  
1 Year
 
  
Years
 
  
Years
 
  
5 Years
 
Principal repayments under secured debt agreements
(1)
   $
9,367,270
    $
172,926
    $
2,803,500
    $
6,145,210
    $
245,634
 
Principal repayments of secured term loans
(2)
    
745,006
     
5,616
     
16,847
     
14,975
     
707,568
 
Principal repayments of convertible notes
(3)
    
622,500
     
—
      
622,500
     
—
     
—
  
                                         
Total
(4)
   $
10,734,776
    $
178,542
    $
3,442,847
    $
6,160,185
    $
953,202
 
                                         
 
 
 
 
 
 
 
 
 
 
 
 
                                         
               
  
 
 
 
 
 
 
 
 
 
 
 
 
     
(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)
 
The Secured Term Loan is partially amortizing, with an amount equal to 1.0% per annum of the principal balance due in quarterly installments. Refer to Note 7 for further details on our secured term loan.
(3)
 
Reflects the outstanding principal balance of Convertible Notes, excluding any potential conversion premium. Refer to Note 8 for further details on our Convertible Notes.
(4)
 
Does not include $692.3 million of
non-consolidated
senior interests and $2.3 billion of securitized debt obligations, as the satisfaction of these liabilities will not require cash outlays from us.
 
 
 
 
 
 
 
 
 
 
 
 
Board of Directors’ Compensation
As of March 31, 2020, 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.
Litigation
From time to time, we may be involved in various claims and legal actions arising in the ordinary course of business. As of March 31, 2020, we were not involved in any material legal proceedings.