Loans and Investments (Tables)

9 Months Ended

Sep. 30, 2023

Summary of Structured Business Loan and Investment Portfolio

Our Structured Business loan and investment portfolio consists of ($ in thousands):


	September 30, 2023		Percent of Total		Loan Count	Wtd. Avg. Pay Rate (1)		Wtd. Avg. Remaining Months to Maturity	Wtd. Avg. First Dollar LTV Ratio (2)		Wtd. Avg. Last Dollar LTV Ratio (3)
Bridge loans (4)	$	12,790,972	97	%	664	8.85	%	13.8	0	%	77	%
Mezzanine loans	233,805		2	%	47	8.35	%	54.7	45	%	79	%
Preferred equity investments	87,924		1	%	10	3.03	%	62.0	47	%	84	%
Other loans (5)	9,694		<1%		2	9.72	%	15.6	0	%	62	%
	13,122,395		100	%	723	8.80	%	14.9	1	%	77	%
Allowance for credit losses	(184,069)
Unearned revenue	(45,530)
Loans and investments, net	$	12,892,796

	December 31, 2022
Bridge loans (4)	$	14,096,054	98	%	692	8.17	%	19.8	0	%	76	%
Mezzanine loans	213,499		1	%	44	8.13	%	63.1	42	%	77	%
Preferred equity investments	110,725		1	%	8	7.63	%	39.2	46	%	79	%
Other loans (5)	35,845		<1%		3	8.76	%	32.8	0	%	58	%
	14,456,123		100	%	747	8.17	%	20.6	1	%	76	%
Allowance for credit losses	(132,559)
Unearned revenue	(68,890)
Loans and investments, net	$	14,254,674

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(1)“Weighted Average Pay Rate” is a weighted average, based on the unpaid principal balance (“UPB”) of each loan in our portfolio, of the interest rate required to be paid monthly as stated in the individual loan agreements. Certain loans and investments that require an accrual rate to be paid at maturity are not included in the weighted average pay rate as shown in the table.

(2)The “First Dollar Loan-to-Value (“LTV”) Ratio” is calculated by comparing the total of our senior most dollar and all senior lien positions within the capital stack to the fair value of the underlying collateral to determine the point at which we will absorb a total loss of our position.

(3)The “Last Dollar LTV Ratio” is calculated by comparing the total of the carrying value of our loan and all senior lien positions within the capital stack to the fair value of the underlying collateral to determine the point at which we will initially absorb a loss.

(4)At September 30, 2023 and December 31, 2022, bridge loans included 311 and 241, respectively, of SFR loans with a total gross loan commitment of $2.05 billion and $1.57 billion, respectively, of which $1.16 billion and $927.4 million, respectively, was funded.

(5)Other loans represents variable rate SFR permanent loans.

Schedule of the Loan Portfolio's Internal Risk Ratings and LTV Ratios by Asset Class

A summary of the loan portfolio’s internal risk ratings and LTV ratios by asset class at September 30, 2023 is as follows ($ in thousands):


	UPB by Origination Year												Total			Wtd. Avg. First Dollar LTV Ratio		Wtd. Avg. Last Dollar LTV Ratio
Asset Class / Risk Rating	2023		2022		2021		2020		2019		Prior
Multifamily:
Pass	$	97,186	$	131,266	$	97,269	$	2,010	$	—	$	20,300	$	348,031
Pass/Watch	673,165		2,378,519		3,015,502		81,560		112,416		58,394		6,319,556
Special Mention	799		1,830,803		2,353,938		219,050		140,685		—		4,545,275
Substandard	—		290,492		153,697		24,099		—		—		468,288
Doubtful	—		—		13,930		—		9,765		—		23,695
Total Multifamily	$	771,150	$	4,631,080	$	5,634,336	$	326,719	$	262,866	$	78,694	$	11,704,845		1	%	78	%
Single-Family Rental:	Percentage of portfolio												89		%
Pass	$	22,208	$	—	$	—	$	—	$	—	$	—	$	22,208
Pass/Watch	161,976		466,391		355,176		86,347		20,965		—		1,090,855
Special Mention	—		22,924		12,852		24,503		—		—		60,279
Total Single-Family Rental	$	184,184	$	489,315	$	368,028	$	110,850	$	20,965	$	—	$	1,173,342		0	%	63	%
Land:	Percentage of portfolio												9		%
Pass/Watch	$	—	$	—	$	—	$	4,600	$	—	$	—	$	4,600
Special Mention	—		—		—		3,500		—		—		3,500
Substandard	—		—		—		—		—		127,928		127,928
Total Land	$	—	$	—	$	—	$	8,100	$	—	$	127,928	$	136,028		0	%	98	%
Office:	Percentage of portfolio												1		%
Special Mention	$	—	$	—	$	—	$	35,410	$	—	$	—	$	35,410
Substandard	—		—		—		—		—		45,025		45,025
Total Office	$	—	$	—	$	—	$	35,410	$	—	$	45,025	$	80,435		0	%	90	%
Retail:	Percentage of portfolio												1		%
Pass/Watch	$	—	$	—	$	—	$	—	$	4,000	$	—	$	4,000
Special Mention	—		—		—		—		—		3,445		3,445
Substandard	—		—		—		—		—		18,600		18,600
Total Retail	$	—	$	—	$	—	$	—	$	4,000	$	22,045	$	26,045		11	%	71	%
Other:	Percentage of portfolio												< 1%
Doubtful	$	—	$	—	$	—	$	—	$	—	$	1,700	$	1,700
Total Other	$	—	$	—	$	—	$	—	$	—	$	1,700	$	1,700		63	%	63	%
	Percentage of portfolio												< 1%
Grand Total	$	955,334	$	5,120,395	$	6,002,364	$	481,079	$	287,831	$	275,392	$	13,122,395		1	%	77	%

Schedule of the Changes in the Allowance for Credit Losses

A summary of the changes in the allowance for credit losses is as follows (in thousands):


	Three Months Ended September 30, 2023
	Multifamily		Land		Office		Retail		Commercial		Single-Family Rental		Other		Total
Allowance for credit losses:
Beginning balance	$	74,295	$	77,902	$	8,246	$	5,819	$	1,700	$	1,077	$	15	$	169,054
Provision for credit losses (net of recoveries)	14,884		60		(76)		—		—		162		(15)		15,015
Ending balance	$	89,179	$	77,962	$	8,170	$	5,819	$	1,700	$	1,239	$	—	$	184,069

	Three Months Ended September 30, 2022
Allowance for credit losses:
Beginning balance	$	27,958	$	77,918	$	7,031	$	5,819	$	1,700	$	725	$	180	$	121,331
Provision for credit losses (net of recoveries)	(675)		(8)		306		—		—		1,326		16		965
Ending balance	$	27,283	$	77,910	$	7,337	$	5,819	$	1,700	$	2,051	$	196	$	122,296

	Nine Months Ended September 30, 2023
Allowance for credit losses:
Beginning balance	$	37,961	$	78,068	$	8,162	$	5,819	$	1,700	$	781	$	68	$	132,559
Provision for credit losses (net of recoveries)	51,218		(106)		8		—		—		458		(68)		51,510
Ending balance	$	89,179	$	77,962	$	8,170	$	5,819	$	1,700	$	1,239	$	—	$	184,069

	Nine Months Ended September 30, 2022
Allowance for credit losses:
Beginning balance	$	18,707	$	77,970	$	8,073	$	5,819	$	1,700	$	320	$	652	$	113,241
Provision for credit losses (net of recoveries)	8,576		(60)		(736)		—		—		1,731		(456)		9,055
Ending balance	$	27,283	$	77,910	$	7,337	$	5,819	$	1,700	$	2,051	$	196	$	122,296

Summary of Specific Loans Considered Impaired by Asset Class

A summary of our specific loans considered impaired by asset class is as follows ($ in thousands):


	September 30, 2023
Asset Class	UPB (1)		Carrying Value		Allowance for Credit Losses		Wtd. Avg. First Dollar LTV Ratio		Wtd. Avg. Last Dollar LTV Ratio
Land	$	134,215	$	127,868	$	77,869	0	%	99	%
Multifamily	90,070		87,995		17,750		0	%	100	%
Office	45,025		45,025		7,951		0	%	99	%
Retail	22,045		17,670		5,817		13	%	78	%
Commercial	1,700		1,700		1,700		63	%	63	%
Total	$	293,055	$	280,258	$	111,087	1	%	97	%

	December 31, 2022
Land	$	134,215	$	127,868	$	77,869	0	%	99	%
Retail	22,045		17,563		5,817		14	%	79	%
Commercial	1,700		1,700		1,700		63	%	63	%
Total	$	157,960	$	147,131	$	85,386	3	%	96	%

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(1)Represents the UPB of thirteen and seven impaired loans (less unearned revenue and other holdbacks and adjustments) by asset class at September 30, 2023 and December 31, 2022, respectively.

Schedule of Non-Performing Loans by Asset Class

A summary of our non-performing loans by asset class is as follows (in thousands):


	September 30, 2023						December 31, 2022
	UPB		Less Than 90 Days Past Due		Greater Than 90 Days Past Due		UPB		Less Than 90 Days Past Due		Greater Than 90 Days Past Due
Multifamily	$	152,717	$	122,847	$	29,870	$	2,605	$	—	$	2,605
Retail	3,445		—		3,445		3,445		—		3,445
Commercial	1,700		—		1,700		1,700		—		1,700
Total	$	157,862	$	122,847	$	35,015	$	7,750	$	—	$	7,750