XML 48 R28.htm IDEA: XBRL DOCUMENT v3.20.2
Loans Receivable, Net (Tables)
 6 Months Ended
Jun. 30, 2020
Receivables [Abstract]  
Overall Statistics for Loans Receivable Portfolio
The following table details overall statistics for our loans receivable portfolio ($ in thousands):
  
June 30, 2020
 
  
December 31, 2019
 
Number of loans
   
128
     
128
 
Principal balance
  $
16,434,631
    $
   16,277,343
 
Net book value
  $
16,161,353
    $
16,164,801
 
Unfunded loan commitments
(1)
   $
3,590,868
    $
3,911,868
 
Weighted-average cash coupon
(2)
    
L + 3.17
 %    
L + 3.20
 %
 
Weighted-average
all-in
yield
(2)
    
L + 3.52
 %    
L + 3.55
 %
Weighted-average maximum maturity (years)
(3)
    
3.5
     
3.8
 
                                
    
     
 
(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)
 
The weighted-average cash coupon and
all-in
yield are expressed as a spread over the relevant floating benchmark rates, which include USD LIBOR, GBP LIBOR, EURIBOR, BBSY, and CDOR, as applicable to each loan. As of June 30, 2020, 99% of our loans by principal balance earned a floating rate of interest, primarily indexed to USD LIBOR, and $12.6 billion of such loans earned interest based on floors that are above the applicable index. The other 1% of our loans earned a fixed rate of interest. We reflect our fixed rate loans as a spread over the relevant floating benchmark rates, as of June 30, 2020 and December 31, 2019, respectively, for purposes of the weighted-averages. As of December 31, 2019, 99% of our loans by total loan exposure earned a floating rate of interest, primarily indexed to USD LIBOR, and $6.1 billion of such loans earned interest based on floors that are above the applicable index. 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 June 30, 2020, 51% of our loans by principal balance were subject to yield maintenance or other prepayment restrictions and 49% were open to repayment by the borrower without penalty. As of December 31, 2019, 61% of our loans by principal balance were subject to yield maintenance or other prepayment restrictions and 39% 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
 
Loans Receivable, as of December 31, 2019
  $
16,277,343
    $
(112,542
 )   $
16,164,801
 
Loan fundings
   
1,240,642
     
—  
      
1,240,642
 
Loan repayments
   
(953,069
 )    
—  
      
(953,069
 )
Unrealized (loss) gain on foreign currency translation
   
(130,285
 )    
1,232
     
(129,053
 )
Deferred fees and other items
   
—  
      
(11,969
 )    
(11,969
 )
Amortization of fees and other items
   
—  
      
28,051
     
28,051
 
                         
Loans Receivable, as of June 30, 2020
  $
16,434,631
    $
(95,228
 )   $
16,339,403
 
                         
CECL reserve
   
     
     
(178,050
 )
                         
Loans Receivable, net, as of June 30, 2020
   
     
    $
16,161,353
 
                         
                            
    
     
     
 
(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):    
June 30, 2020
 
Property Type
 
Number of
Loans
 
  
Net Book
Value
 
  
Total Loan
Exposure
(1)(2)
 
  
Percentage of
Portfolio
 
Office
   
  60
    $
9,580,065
    $
9,940,103
     
  59%
 
Hospitality
   
  14
     
2,220,051
     
2,295,799
     
  13   
  
Multifamily
   
  36
     
1,881,529
     
1,947,388
     
  11   
  
Industrial
   
    7
     
840,065
     
844,665
     
    5   
  
Retail
   
    4
     
533,088
     
544,682
     
    3   
  
Self-Storage
   
    2
     
289,329
     
289,441
     
    2   
  
Condominium
   
    2
     
232,220
     
233,621
     
    1   
  
Other
   
    3
     
763,056
     
1,078,545
     
    6   
  
                                 
Total loans receivable
   
128
    $
16,339,403
    $
17,174,244
     
100%
 
                                 
CECL reserve
   
     
(178,050
 )    
     
 
                                 
Loans receivable, net
   
    $
16,161,353
     
     
 
                                 
Geographic Location
 
Number of
Loans
 
  
Net Book
Value
 
  
Total Loan
Exposure
(1)(2)
 
  
Percentage of
Portfolio
 
United States
    
     
     
     
 
Northeast
   
  27
    $
4,277,301
    $
4,301,875
     
  25%
 
West
   
  28
     
2,924,455
     
3,304,345
     
  19   
  
Southeast
   
  25
     
2,363,782
     
2,376,630
     
  14   
  
Midwest
   
    9
     
1,044,542
     
1,048,537
     
    6   
  
Southwest
   
  12
     
614,003
     
616,253
     
    4   
  
Northwest
   
    1
     
15,515
     
15,530
     
—
 
                                 
Subtotal
   
102
     
11,239,598
     
11,663,170
     
  68   
  
International
    
     
     
     
 
United Kingdom
   
  13
     
1,658,666
     
1,997,241
     
  12   
  
Ireland
   
    1
     
1,323,243
     
1,333,139
     
    8   
  
Spain
   
    2
     
1,208,597
     
1,214,209
     
    7   
  
Germany
   
    1
     
198,675
     
250,803
     
    1   
  
Australia
   
    2
     
232,376
     
233,425
     
    1   
  
Italy
   
    1
     
186,671
     
188,510
     
    1   
  
Netherlands
   
    1
     
96,634
     
97,731
     
    1   
  
Belgium
   
    1
     
87,222
     
87,304
     
    1   
  
Canada
   
    3
     
75,534
     
75,684
     
—    
  
France
   
    1
     
32,187
     
33,028
     
—    
  
                                 
Subtotal
   
  26
     
5,099,805
     
5,511,074
     
32   
  
                                 
Total loans receivable
   
128
    $
16,339,403
    $
17,174,244
     
100%
 
                                 
CECL reserve
   
     
(178,050
 )    
     
 
                                 
Loans receivable, net
   
    $
16,161,353
     
     
 
                                 
                        
    
     
     
     
 
(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 $739.6 million of such
non-consolidated
senior interests as of June 30, 2020.
(2)
 
Excludes investment exposure to the $857.3 million 2018 Single Asset Securitization. See Note 4 for details of the subordinate 
position
 
we own in the 2018 Single Asset Securitization.
December 31, 2019
Property Type
 
Number of
Loans
 
Net Book
Value
 
  
Total Loan
Exposure
(1)(2)
 
  
Percentage of
Portfolio
Office
 
  63
  $
9,946,055
    $
10,266,567
   
  61%
Hospitality
 
  14
   
2,199,220
     
2,281,718
   
  13   
Multifamily
 
  36
   
1,596,333
     
1,642,664
   
  10   
Industrial
 
    5
   
603,917
     
607,423
   
    4   
Retail
 
    3
   
373,045
     
381,040
   
    2   
Self-Storage
 
    2
   
291,994
     
292,496
   
    2   
Condominium
 
    1
   
232,778
     
234,260
   
    1   
Other
 
    4
   
921,459
     
1,259,696
   
    7   
                         
 
128
  $
16,164,801
    $
 
16,965,864
   
100%
                         
Geographic Location
 
Number of
Loans
 
  
Net Book
Value
 
  
Total Loan
Exposure
(1)(2)
 
  
Percentage of
Portfolio
 
United States
    
     
     
     
 
Northeast
   
  25
    $
3,789,477
    $
3,815,580
     
  22%
 
West
   
  30
     
3,143,323
     
3,451,914
     
  20   
  
Southeast
   
  23
     
2,321,444
     
2,334,852
     
  14  
  
Midwest
   
  10
     
1,174,581
     
1,180,240
     
    7   
  
Southwest
   
  11
     
464,989
     
467,532
     
    3   
  
Northwest
   
    3
     
52,891
     
52,989
     
—    
  
                                 
Subtotal
   
102
     
10,946,705
     
11,303,107
     
  66   
  
International
    
     
     
     
 
United Kingdom
   
  13
     
1,738,536
     
2,102,501
     
  12   
  
Ireland
   
    1
     
1,318,196
     
1,330,647
     
    8   
  
Spain
   
    2
     
1,231,061
     
1,237,809
     
    7   
  
Australia
   
    3
     
360,047
     
361,763
     
    2   
  
Germany
   
    1
     
195,081
     
251,020
     
    1   
  
Italy
   
    1
     
178,740
     
180,897
     
    1   
  
Belgium
   
    1
     
86,807
     
87,201
     
    1   
  
Canada
   
    3
     
77,656
     
77,953
     
    1   
  
France
   
    1
     
31,972
     
32,966
     
    1   
  
                                 
Subtotal
   
  26
     
5,218,096
     
5,662,757
     
  34   
  
                                 
Total
   
128
    $
16,164,801
    $
 
16,965,864
     
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 $688.5 million of such
non-consolidated
senior interests as of December 31, 2019.
  
(2)
 
Excludes investment exposure to the $930.0 million 2018 Single Asset Securitization. See Note 4 for details of the subordinate
 position
 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):    
  
June 30, 2020
   
 
  
December 31, 2019
 
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  
    
    6
    $
403,025
    $
404,596
     
     
    6
    $
376,379
    $
378,427
 
      2  
    
  28
     
3,143,641
     
3,163,083
     
     
  30
     
3,481,123
     
3,504,972
 
      3  
    
  78
     
9,509,007
     
10,306,208
     
     
  89
     
12,137,963
     
12,912,722
 
      4  
    
  14
     
2,951,069
     
2,966,195
     
     
    3
     
169,336
     
169,743
 
      5  
    
    2
     
332,661
     
334,162
     
     
—  
      
—  
      
—  
  
                                                         
Total loans receivable
   
128
    $
16,339,403
    $
17,174,244
     
     
128
    $
16,164,801
    $
16,965,864
 
                                                         
CECL reserve
   
     
(178,050
 )    
     
     
     
—  
      
 
                                                         
Loans receivable, net
   
    $
16,161,353
     
     
     
    $
16,164,801
     
 
                                                         
                        
(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 $739.6 million and $688.5 million of such
non-consolidated
senior interests as of June 30, 2020 and December 31, 2019, respectively.
(2)
 
 Excludes investment exposure to the 2018 Single Asset Securitization of $857.3 million and $930.0 million as of June 30, 2020 and December 31, 2019, respectively. See Note 4 for details of the subordinate
 
position
 
we own in the 2018 Single Asset Securitization.
Schedule Of Current Expected Credit Loss Reserve By Pool The following table presents the activity in our loans receivable CECL reserve by investment pool for the
three and
six months ended June 30, 2020 ($ in thousands):
 
U.S. Loans
 
  
Non-U.S.
 Loans
 
  
Unique Loans
 
  
Impaired Loans
 
  
Total
 
Loans Receivable, Net
 
 
 
  
 
 
  
 
 
  
 
 
  
 
 
CECL reserve as of December 31, 2019
  $
—  
     $
—  
     $
—  
     $
—  
     $
—  
  
Initial CECL reserve on January 1, 2020
   
8,955
     
3,631
     
1,356
     
—  
      
13,942
 
Increase in CECL reserve
   
52,449
     
16,114
     
25,884
     
69,661
     
164,108
 
                                         
CECL reserve as of June 30, 2020
  $
61,404
    $
19,745
    $
27,240
    $
69,661
    $
178,050
 
                                         
CECL reserve as of March 31, 2020
  $
64,861
    $
21,825
    $
26,008
    $
—  
     $
112,694
 
(Decrease) increase in CECL reserve
   
(3,457
 )    
(2,080
 )    
1,232
     
69,661
     
65,356
 
                                         
CECL reserve as of June 30, 2020
  $
61,404
    $
19,745
    $
27,240
    $
69,661
    $
178,050
 
                                         
Schedule of Loans Receivable Based On Our Internal Risk Ratings, Separated By Year Of Origination The following table presents the net book value of our loan portfolio as of June 30, 2020 by year of origination, investment pool, and risk rating ($ in thousands):
 
Net Book Value of Loans Receivable by Year of Origination
(1)(2)
  
  
As of June 30, 2020
 
  
2020
 
  
2019
 
  
2018
 
  
2017
 
  
2016
 
  
Prior
 
  
Total
 
U.S. loans
   
     
     
     
     
     
     
 
1
  $
20,362
    $
199,351
    $
—  
     $
43,979
    $
22,153
    $
—  
     $
285,845
 
2
   
—  
      
86,727
     
1,907,488
     
758,791
     
79,947
     
223,466
     
3,056,419
 
3
   
586,916
     
2,404,636
     
1,625,490
     
1,116,969
     
229,517
     
228,698
     
6,192,226
 
4
   
65,860
     
165,782
     
1,042,967
     
63,212
     
110,158
     
—  
      
1,447,979
 
5
   
—  
      
—  
      
—  
      
—  
      
—  
      
—  
      
—  
  
                                                         
Total U.S. loans
  $
673,138
    $
2,856,496
    $
4,575,945
    $
1,982,951
    $
441,775
    $
452,164
    $
10,982,469
 
                                                         
Non-U.S.
loans
    
     
     
     
     
     
     
 
1
  $
—  
     $
—  
     $
117,180
    $
—  
     $
—  
     $
—  
     $
117,180
 
2
   
—  
      
—  
      
—  
      
87,222
     
—  
      
—  
      
87,222
 
3
   
96,634
     
2,423,414
     
430,690
     
—  
      
103,880
     
—  
      
3,054,618
 
4
   
—  
      
231,923
     
—  
      
—  
      
—  
      
—  
      
231,923
 
5
   
—  
      
—  
      
—  
      
—  
      
—  
      
—  
      
—  
  
                                                         
Total
Non-U.S.
loans
   $
96,634
    $
2,655,337
    $
547,870
    $
87,222
    $
103,880
    $
—  
     $
3,490,943
 
                                                         
Unique loans
   
     
     
     
     
     
     
 
1
  $
—  
     $
—  
     $
—  
     $
—  
     $
—  
     $
—  
     $
—  
  
2
   
—  
      
—  
      
—  
      
—  
      
—  
      
—  
      
—  
  
3
   
—  
      
—  
      
178,505
     
—  
      
—  
      
83,658
     
262,163
 
4
   
—  
      
294,492
     
976,675
     
—  
      
—  
      
—  
      
1,271,167
 
5
   
—  
      
—  
      
—  
      
—  
      
—  
      
—  
      
—  
  
                                                         
Total unique loans
  $
—  
     $
294,492
    $
1,155,180
    $
—  
     $
—  
     $
83,658
    $
1,533,330
 
                                                         
Impaired loans
   
     
     
     
     
     
     
 
1
  $
—  
     $
—  
     $
—  
     $
—  
     $
—  
     $
—  
     $
—  
  
2
   
—  
      
—  
      
—  
      
—  
      
—  
      
—  
      
—  
  
3
   
—  
      
—  
      
—  
      
—  
      
—  
      
—  
      
—  
  
4
   
—  
      
—  
      
—  
      
—  
      
—  
      
—  
      
—  
  
5
   
—  
      
—  
      
279,874
     
—  
      
—  
      
52,787
     
332,661
 
                                                         
Total impaired loans
  $
—  
     $
—  
     $
279,874
    $
—  
     $
—  
     $
52,787
    $
332,661
 
                                                         
Total loans receivable
   
     
     
     
     
     
     
 
1
  $
20,362
    $
199,351
    $
117,180
    $
43,979
    $
22,153
    $
—  
     $
403,025
 
2
   
—  
      
86,727
     
1,907,488
     
846,013
     
79,947
     
223,466
     
3,143,641
 
3
   
683,550
     
4,828,050
     
2,234,685
     
1,116,969
     
333,397
     
312,356
     
9,509,007
 
4
   
65,860
     
692,197
     
2,019,642
     
63,212
     
110,158
     
—  
      
2,951,069
 
5
   
—  
      
—  
      
279,874
     
—  
      
—  
      
52,787
     
332,661
 
                                                         
Total loans receivable
  $
769,772
    $
5,806,325
    $
6,558,869
    $
2,070,173
    $
545,655
    $
588,609
    $
16,339,403
 
                                                         
CECL reserve
   
     
     
     
     
     
     
(178,050
)
                                                         
Loans receivable, net
   
     
     
     
     
     
    $
16,161,353
 
                                                         
 
(1) Date loan was originated or acquired by us. Origination dates are subsequently updated to reflect material loan modifications.
(2) Excludes the $75.8
million net book value of our held-to-maturity debt securities which represents our subordinate position we own in the 2018 Single Asset Securitization, and is included in other assets on our consolidated balance sheets. See Note 4 for details of the subordinate position we own in the 2018 Single Asset Securitization.