Capital Trust, Inc. and Subsidiaries

Schedule IV—Mortgage Loans on Real Estate

As of December 31, 2012

(in thousands)

Type of Loan/Borrower	Description/ Location	Interest Payment Rates (1)		Final Maturity Date	Periodic Payment Terms(2)	Prior Liens(3)		Face Amount of Loans(4)		Carrying Amount of Loans (5)(6)
Mortgage Loans:
Borrower A	Office / CA		1.1%	5/3/2013	P & I		$—		$62,500		$62,500
All other mortgage loans individually							—		—		—
less than 3%:
Total mortgage loans:							—		62,500		62,500

Subordinate Interests in Mortgages:
Borrower B	Office / NY		9.7%	10/9/2013	I/O		80,000		$27,000		27,000
Borrower C	Office / Diversified		5.3%	10/9/2013	I/O		57,550		20,000		20,000
Borrower D	Hotel / HI		7.5%	7/9/2014	I/O		266,689		30,000		30,000
All subordinate interests in mortgages			3.0% - 5.2%	11/9/11 - 2/9/13			n/a		24,680		2,000
individually less than 3%:
Total subordinate interests in mortgages:							404,239		101,680		79,000

Total loans:							$404,239		$164,180		$141,500


(1)	Rates for floating rate loans are based on LIBOR of 0.21% as of December 31, 2012.
(2)	P & I = principal and interest. I/O = interest only.
(3)	Represents only third party liens.
(4)	Mortgage loans which are greater than 90 days delinquent include $17.1 million of our subordinate interests in mortgages.
(5)	Mortgage loans with a carrying value of $62.5 million are not consolidated for federal income tax purposes because they are held by securitization vehicles in which we invest, as further described in Note 5. Excluding these loans, the tax basis of the mortgage loans included above is approximately $80.3 million as of December 31, 2012.
(6)	As of December 31, 2012, we identified three loans with an aggregate gross book value of $24.7 million for impairment, against which we have recorded a $22.7 million provision, and which are carried at an aggregate net book value of $2.0 million. See Note 5 for a description of our loan impairment and valuation process.

Capital Trust, Inc. and Subsidiaries

Notes to Schedule IV

As of December 31, 2012

(in thousands)

1. Reconciliation of Mortgage Loans on Real Estate:

The following table reconciles Mortgage Loans on Real Estate for the years ended December 31, 2012, 2011 and 2010:

	2012			2011			2010

Balance at January 1 (1)		$869,269			$3,503,447			$1,175,792
Additions during period:
Impact of consolidation due to change in accounting principal (2)		—			—			2,845,241
Consolidation of additional securitization vehicle (3)		—			22,437			—
Additional fundings (4)		26			478			2,021
Amortization of discount, net (5)		180			1,773			1,364
Recovery of provision for loan losses		36,147			21,973			—

Deductions during period:
Deconsolidation of subsidiaries (6)		(645,163	)		(595,920	)		—
Collections of principal		(118,959	)		(2,069,799	)		(328,408	)
Transfers to real estate held-for-sale		—			—			(12,054	)
Transfers to other assets (7)		—			(7,914	)		(6,614	)
Provision for loan losses		—			—			(146,478	)
Valuation allowance on loans held-for-sale		—			(1,456	)		(2,119	)
Mortgage loans sold		—			(5,750	)		(25,298	)
Balance at December 31		$141,500			$869,269			$3,503,447


(1)	All amounts include both loans receivable and loans held-for-sale.
(2)	Loans with an aggregate principal balance of $2.98 billion as of December 31, 2009 have been consolidated onto our balance sheet beginning January 1, 2010, as discussed in Note 2.
(3)	We consolidated an additional securitization vehicle, GECMC 2000-1, beginning in the third quarter of 2011.
(4)	Includes deferred interest, which is a non-cash addition to the balance of mortgage loans, of $26,000, $478,000, and $378,000 for the years ended December 31, 21012, 2011, and 2010, respectively.
(5)	Net discount amortization represents an entirely non-cash addition to the balance of mortgage loans.
(6)	During 2012, we ceased consolidation of various subsidiaries. See Note 1 for further discussion.
(7)	Includes one loan which was restructured in January 2011 and converted to a $7.9 million equity participation in the borrower entity, as well as one loan which was restructured in June 2010 and converted to a $6.6 million equity participation in the borrower entity. These equity investments have been reclassified to Accrued Interest Receivable and Other Assets of CT Legacy REIT, and consolidated securitization vehicles, respectively, on our consolidated balance sheet as of December 31, 2011.