Loans Receivable, Net (Tables)

9 Months Ended

Sep. 30, 2021

Receivables [Abstract]

Overall Statistics for Loans Receivable Portfolio

The following table details overall statistics for our loans receivable portfolio ($ in thousands):

	September 30, 2021			December 31, 2020
Number of loans		156			120
Principal balance	$	20,522,560		$	16,652,824
Net book value	$	20,276,078		$	16,399,166
Unfunded loan commitments(1)	$	4,220,214		$	3,160,084
Weighted-average spread(2)		+ 3.18	%		+ 3.18	%
Weighted-average all-in yield(2)		+ 3.51	%		+ 3.53	%
Weighted-average maximum maturity (years)(3)		3.3			3.1

(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 spread and all-in yield are expressed as a spread over the relevant floating benchmark rates, which include USD LIBOR, GBP LIBOR, SONIA, EURIBOR, STIBOR, BBSY, and CDOR, as applicable to each loan. As of September 30, 2021, 99.6% of our loans by principal balance earned a floating rate of interest, primarily indexed to USD LIBOR. The other 0.4% 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 September 30, 2021 and December 31, 2020, for purposes of the weighted-averages. As of December 31, 2020, 99.4% of our loans by principal balance earned a floating rate of interest, primarily indexed to USD LIBOR. In addition to spread, 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. Excludes loans accounted for under the cost-recovery method.
(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, 2021, 44% of our loans by principal balance were subject to yield maintenance or other prepayment restrictions and 56% were open to repayment by the borrower without penalty. As of December 31, 2020, 31% of our loans by principal balance were subject to yield maintenance or other prepayment restrictions and 69% were open to repayment by the borrower without penalty.

Schedule of Loan Receivable Portfolio Based On Floor Rate

The following table details the index rate floors for our loans receivable portfolio as of September 30, 2021 ($ in thousands):

	Loans Receivable Principal Balance
Index rate floors	USD		Non-USD(1)		Total
Fixed rate	$	—	$	78,511	$	78,511
0.00% or no floor(2)		3,265,850		4,912,695		8,178,545
0.01% to 0.24% floor		3,910,133		112,026		4,022,159
0.25% to 0.99% floor		1,363,685		271,616		1,635,301
1.00% or more floor		6,062,597		545,447		6,608,044
Total(3)(4)	$	14,602,265	$	5,920,295	$	20,522,560

(1)	Includes Euro, British Pound Sterling, Swedish Krona, Australian Dollar, and Canadian Dollar Currencies.
(2)	Includes $338.7 million of loans accounted for under the cost-recovery method.
(3)	Excludes investment exposure to $79.2 million subordinate position we own in the $493.3 million 2018 Single Asset Securitization. Refer to Notes 4 and 16 to our consolidated financial statements for further discussion of the 2018 Single Asset Securitization.
(4)	As of September 30, 2021, the weighted-average index rate floor of our loan portfolio was 0.55%. Excluding 0.0% index rate floors, the weighted-average index rate floor was 0.89%.

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, 2020	$	16,652,824		$	(80,109	)	$	16,572,715
Loan fundings		7,449,491			—			7,449,491
Loan repayments and sales		(3,351,118	)		—			(3,351,118	)
Unrealized (loss) gain on foreign currency translation		(228,637	)		1,157			(227,480	)
Deferred fees and other items		—			(79,971	)		(79,971	)
Amortization of fees and other items		—			42,829			42,829
Loans receivable, as of September 30, 2021	$	20,522,560		$	(116,094	)	$	20,406,466
CECL reserve								(130,388	)
Loans receivable, net, as of September 30, 2021							$	20,276,078

(1)   Other items primarily consist of purchase and sale 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, 2021
Property Type	Number of Loans		Net Book Value			Total Loan Exposure(1)(2)		Percentage of Portfolio
Office		65	$	10,239,432		$	10,940,778		50%
Multifamily		56		4,465,938			4,494,065		21
Hospitality		18		2,777,827			2,879,888		13
Industrial		5		894,865			901,211		4
Retail		6		770,045			773,491		4
Life Sciences		2		407,595			413,209		2
Other		4		850,764			1,117,525		6
Total loans receivable		156	$	20,406,466		$	21,520,167		100%
CECL reserve				(130,388	)
Loans receivable, net			$	20,276,078

Geographic Location	Number of Loans		Net Book Value			Total Loan Exposure(1)(2)		Percentage of Portfolio
United States
Northeast		26	$	4,463,202		$	4,491,804		21%
West		32		3,548,756			4,126,256		19
Southeast		33		3,425,624			3,618,296		17
Southwest		24		1,786,470			1,796,817		8
Midwest		10		1,201,663			1,205,877		6
Northwest		2		94,670			94,963		—
Subtotal		127		14,520,385			15,334,013		71
International
United Kingdom		14		1,754,872			1,999,180		9
Spain		4		1,448,355			1,455,967		7
Ireland		1		1,233,286			1,237,547		6
Sweden		1		564,277			569,529		3
Australia		2		175,786			176,144		1
Canada		2		66,881			66,864		—
Other Europe		5		642,624			680,923		3
Subtotal		29		5,886,081			6,186,154		29
Total loans receivable		156	$	20,406,466		$	21,520,167		100%
CECL reserve				(130,388	)
Loans receivable, net			$	20,276,078

(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 $997.6 million of such non-consolidated senior interests as of September 30, 2021.
(2)	Excludes investment exposure to the $493.3 million 2018 Single Asset Securitization. See Note 4 for details of the subordinate position we own in the 2018 Single Asset Securitization.

December 31, 2020
Property Type	Number of Loans		Net Book Value			Total Loan Exposure(1)(2)		Percentage of Portfolio
Office		58	$	9,834,509		$	10,303,895		58%
Hospitality		14		2,295,255			2,369,454		14
Multifamily		31		1,788,149			1,862,667		11
Industrial		6		673,912			675,344		4
Retail		4		538,702			551,243		3
Life Sciences		1		146,290			147,763		1
Other		6		1,295,898			1,544,255		9
Total loans receivable		120	$	16,572,715		$	17,454,621		100%
CECL reserve				(173,549	)
Loans receivable, net			$	16,399,166

Geographic Location	Number of Loans		Net Book Value			Total Loan Exposure(1)(2)		Percentage of Portfolio
United States
Northeast		24	$	4,050,732		$	4,069,712		23%
West		27		2,942,126			3,413,089		20
Southeast		25		2,624,701			2,707,080		16
Midwest		8		973,702			976,693		6
Southwest		9		597,100			598,813		3
Northwest		1		15,404			15,413		—
Subtotal		94		11,203,765			11,780,800		68
International
United Kingdom		13		1,816,901			2,066,390		12
Ireland		1		1,309,443			1,317,846		8
Spain		2		1,247,162			1,252,080		7
Australia		2		259,126			259,788		1
Canada		3		82,185			82,262		—
Other Europe		5		654,133			695,455		4
Subtotal		26		5,368,950			5,673,821		32
Total loans receivable		120	$	16,572,715		$	17,454,621		100%
CECL reserve				(173,549	)
Loans receivable, net			$	16,399,166

(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 $801.8 million of such non-consolidated senior interests as of December 31, 2020.
(2)	Excludes investment exposure to the $735.5 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):    

	September 30, 2021						December 31, 2020
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	8	$	931,330		$	931,831	8	$	777,163		$	778,283
2	27		4,800,884			4,836,029	17		2,513,848			2,528,835
3	110		12,060,623			13,129,870	79		9,911,914			10,763,496
4	9		2,276,394			2,283,701	14		3,032,593			3,045,309
5	2		337,235			338,736	2		337,197			338,698
Total loans receivable	156	$	20,406,466		$	21,520,167	120	$	16,572,715		$	17,454,621
CECL reserve			(130,388	)					(173,549	)
Loans receivable, net		$	20,276,078					$	16,399,166

(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 $997.6 million and $801.8 million of such non-consolidated senior interests as of September 30, 2021 and December 31, 2020, respectively.

(2) Excludes investment exposure to the 2018 Single Asset Securitization of $493.3 million and $735.5 million as of September 30, 2021 and December 31, 2020, 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 nine months ended September 30, 2021 and 2020 ($ in thousands):

	U.S. Loans			Non-U.S. Loans			Unique Loans			Impaired Loans		Total
Loans Receivable, Net
CECL reserve as of December 31, 2020	$	42,995		$	27,734		$	33,159		$	69,661	$	173,549
Increase (decrease) in CECL reserve		1,539			(3,134	)		146			—		(1,449	)
CECL reserve as of March 31, 2021	$	44,534		$	24,600		$	33,305		$	69,661	$	172,100
Decrease in CECL reserve		(26,861	)		(15,771	)		(523	)		—		(43,155	)
CECL reserve as of June 30, 2021	$	17,673		$	8,829		$	32,782		$	69,661	$	128,945
Increase (decrease) in CECL reserve		3,253			(283	)		(1,527	)		—		1,443
CECL reserve as of September 30, 2021	$	20,926		$	8,546		$	31,255		$	69,661	$	130,388
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		55,906			18,194			24,652			—		98,752
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
(Decrease) increase in CECL reserve		(10,762	)		7,035			2,703			—		(1,024	)
CECL reserve as of September 30, 2020	$	50,642		$	26,780		$	29,943		$	69,661	$	177,026

Schedule of Loans Receivable Based On Our Internal Risk Ratings, Separated By Year Of Origination

The following tables present the net book value of our loan portfolio as of September 30, 2021 and December 31, 2020, respectively, 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 September 30, 2021
Risk Rating	2021		2020		2019		2018		2017		Prior		Total
U.S. loans
1	$	—	$	43,745	$	696,764	$	—	$	66,188	$	—	$	806,697
2		694,114		—		586,976		887,935		391,740		81,256		2,642,021
3		4,979,207		830,399		1,844,466		1,522,591		602,976		269,127		10,048,766
4		—		—		96,494		540,766		63,365		51,923		752,548
5		—		—		—		—		—		—		—
Total U.S. loans	$	5,673,321	$	874,144	$	3,224,700	$	2,951,292	$	1,124,269	$	402,306	$	14,250,032
Non-U.S. loans
1	$	—	$	—	$	34,877	$	—	$	89,756	$	—	$	124,633
2		564,277		100,126		1,383,692		—		—		110,768		2,158,863
3		455,534		—		907,728		393,573		—		—		1,756,835
4		—		—		346,071		—		—		—		346,071
5		—		—		—		—		—		—		—
Total Non-U.S. loans	$	1,019,811	$	100,126	$	2,672,368	$	393,573	$	89,756	$	110,768	$	4,386,402
Unique loans
1	$	—	$	—	$	—	$	—	$	—	$	—	$	—
2		—		—		—		—		—		—		—
3		—		—		—		196,073		—		58,949		255,022
4		—		—		321,156		856,619		—		—		1,177,775
5		—		—		—		—		—		—		—
Total unique loans	$	—	$	—	$	321,156	$	1,052,692	$	—	$	58,949	$	1,432,797
Impaired loans
1	$	—	$	—	$	—	$	—	$	—	$	—	$	—
2		—		—		—		—		—		—		—
3		—		—		—		—		—		—		—
4		—		—		—		—		—		—		—
5		—		—		—		284,808		—		52,427		337,235
Total impaired loans	$	—	$	—	$	—	$	284,808	$	—	$	52,427	$	337,235
Total loans receivable
1	$	—	$	43,745	$	731,641	$	—	$	155,944	$	—	$	931,330
2		1,258,391		100,126		1,970,668		887,935		391,740		192,024		4,800,884
3		5,434,741		830,399		2,752,194		2,112,237		602,976		328,076		12,060,623
4		—		—		763,721		1,397,385		63,365		51,923		2,276,394
5		—		—		—		284,808		—		52,427		337,235
Total loans receivable	$	6,693,132	$	974,270	$	6,218,224	$	4,682,365	$	1,214,025	$	624,450	$	20,406,466
CECL reserve														(130,388	)
Loans receivable, net													$	20,276,078

(1) Date loan was originated or acquired by us. Origination dates are subsequently updated to reflect material loan modifications.

(2) Excludes the $77.6 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. 

	Net Book Value of Loans Receivable by Year of Origination(1)(2)
	As of December 31, 2020
Risk Rating	2020		2019		2018		2017		2016		Prior		Total
U.S. loans
1	$	—	$	231,796	$	253,674	$	43,906	$	17,009	$	—	$	546,385
2		—		282,017		1,172,168		757,138		79,848		222,677		2,513,848
3		781,595		2,391,297		1,672,897		1,134,288		227,466		220,644		6,428,187
4		65,978		170,541		1,055,142		63,293		105,380		—		1,460,334
5		—		—		—		—		—		—		—
Total U.S. loans	$	847,573	$	3,075,651	$	4,153,881	$	1,998,625	$	429,703	$	443,321	$	10,948,754
Non-U.S. loans
1	$	—	$	—	$	136,021	$	94,757	$	—	$	—	$	230,778
2		—		—		—		—		—		—		—
3		105,300		2,526,225		479,512		—		113,653		—		3,224,690
4		—		256,494		—		—		—		—		256,494
5		—		—		—		—		—		—		—
Total Non-U.S. loans	$	105,300	$	2,782,719	$	615,533	$	94,757	$	113,653	$	—	$	3,711,962
Unique loans
1	$	—	$	—	$	—	$	—	$	—	$	—	$	—
2		—		—		—		—		—		—		—
3		—		—		198,433		—		—		60,604		259,037
4		—		325,097		990,668		—		—		—		1,315,765
5		—		—		—		—		—		—		—
Total unique loans	$	—	$	325,097	$	1,189,101	$	—	$	—	$	60,604	$	1,574,802
Impaired loans
1	$	—	$	—	$	—	$	—	$	—	$	—	$	—
2		—		—		—		—		—		—		—
3		—		—		—		—		—		—		—
4		—		—		—		—		—		—		—
5		—		—		284,809		—		—		52,388		337,197
Total impaired loans	$	—	$	—	$	284,809	$	—	$	—	$	52,388	$	337,197
Total loans receivable
1	$	—	$	231,796	$	389,695	$	138,663	$	17,009	$	—	$	777,163
2		—		282,017		1,172,168		757,138		79,848		222,677		2,513,848
3		886,895		4,917,522		2,350,842		1,134,288		341,119		281,248		9,911,914
4		65,978		752,132		2,045,810		63,293		105,380		—		3,032,593
5		—		—		284,809		—		—		52,388		337,197
Total loans receivable	$	952,873	$	6,183,467	$	6,243,324	$	2,093,382	$	543,356	$	556,313	$	16,572,715
CECL reserve														(173,549	)
Loans receivable, net													$	16,399,166

(1) Date loan was originated or acquired by us. Origination dates are subsequently updated to reflect material loan modifications.

(2) Excludes the $75.7 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.