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Commitments and Contingencies
 6 Months Ended
Jun. 30, 2021
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies
18. 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 June 30, 2021, no contingencies have been recorded on our consolidated balance sheet as a result of
COVID-19,
however as the global pandemic continues and if 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 June 30, 2021, we had unfunded commitments of $3.4 billion related to 86 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 74.4% for such financed loans, resulting in identified financing for $2.4 billion of our aggregate unfunded loan commitments as of June 30, 2021. Some of our lenders, including substantially all of our financing of construction loans, are contractually obligated to fund their ratable portion of these loan commitments over time, while other lenders have some degree of discretion over future loan funding obligations. We expect to fund our loan commitments over the tenor of these loans, which have a weighted-average future funding period of 3.1 years. Our future loan fundings comprise funding for capital expenditures and construction, leasing costs, and interest and carry costs, and will vary depending on the progress of capital projects, leasing, and cash flows at the assets underlying our loans. Therefore, the exact timing and amounts of such future loan fundings are uncertain and will depend on the current and future performance of the underlying collateral assets.
Principal Debt Repayments
Our contractual principal debt repayments as of June 30, 2021 were as follows ($ in thousands):
 
    
Secured
     
Asset-Specific
     
Term
     
Convertible
         
Year
   
Debt
(1)
     
Debt
(1)
     
Loans
(2)
     
Notes
(3)
     
Total
(4)
  
2021 (remainder of the year)
    $ 136,307      $ —        $ 6,869      $ —        $ 143,176  
2022
      600,849        —          13,738        402,500        1,017,087  
2023
      1,969,885        146,165        13,738        220,000        2,349,788  
2024
      3,475,914        —          13,738        —          3,489,652  
2025
      721,213        153,436        13,738        —          888,387  
2026
      1,825,113        —          1,294,319        —          3,119,432  
Thereafter
      —          —          —          —          —     
    
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
Total obligation
    $ 8,729,281      $ 299,601      $ 1,356,140      $ 622,500      $ 11,007,522  
    
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
                        
                                             
  (1)
The allocation of repayments under our secured debt and asset-specific debt is based on the earlier of (i) the maturity date of each agreement, or (ii) the maximum maturity date of the collateral loans, assuming all extension options are exercised by the borrower.
 
  (2)
The Term Loans are partially amortizing, with an amount equal to 1.0% per annum of the principal balance due in quarterly installments. Refer to Note 8 for further details on our term loans.
 
  (3)
Reflects the outstanding principal balance of Convertible Notes, excluding any potential conversion premium. Refer to Note 9 for further details on our Convertible Notes.
 
  (4)
Total does not include $2.9 billion of consolidated securitized debt obligations, $999.2 million of
non-consolidated
senior interests, and $543.9 million of
non-consolidated
securitized debt obligations, as the satisfaction of these liabilities will not require cash outlays from us.
 
Board of Directors’ Compensation
As of June 30, 2021, 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.
In April 2021, our board of directors approved changes to the compensation of our six independent directors which will be effective July 1, 2021. The three board members who have not been affirmatively determined to be independent, including our chairman and our chief executive officer, will continue to serve as directors without compensation for such service. These changes will increase the annual compensation of our directors from $175,000 to $210,000, of which $95,000 will be paid in cash and $115,000 will be paid in the form of deferred stock units or, beginning in 2022, at their election, shares of restricted common stock. In addition, (i) the annual cash compensation for the chair of our compensation committee will increase from $10,000 to $15,000 and (ii) the members of our investment risk management committee will receive additional annual cash compensation of $7,500.
Litigation
From time to time, we may be involved in various claims and legal actions arising in the ordinary course of business. As of June 30, 2021, we were not involved in any material legal proceedings.