XML 42 R32.htm IDEA: XBRL DOCUMENT v3.21.1
LOANS HELD-FOR-INVESTMENT (Tables)
 3 Months Ended
Mar. 31, 2021
Receivables [Abstract]  
Schedule of allowance for financing receivable
The Company’s loans held-for-investment consisted of the following as of March 31, 2021 and December 31, 2020 (dollar amounts in thousands):
As of March 31,As of December 31,
20212020
Mezzanine loans$— $147,475 
Senior loans525,447 341,546 
Total CRE loans held-for-investment and related receivables, net525,447 489,021 
Broadly syndicated loans496,832 473,603 
Loans held-for-investment and related receivables, net$1,022,279 $962,624 
Less: Allowance for credit losses$(12,888)$(70,358)
Total loans held-for-investment and related receivable, net$1,009,391 $892,266 
The following table details overall statistics for the Company’s loans held-for-investment as of March 31, 2021 and December 31, 2020 (dollar amounts in thousands):
CRE Loans (1) (2)
Broadly Syndicated Loans
March 31, 2021December 31, 2020March 31, 2021December 31, 2020
Number of loans6 12 221 194 
Principal balance$530,301 $481,438 $501,095 $477,777 
Net book value$521,562 $428,393 $487,829 $463,873 
Weighted-average interest rate4.9 %7.5 %3.6 %3.8 %
Weighted-average maximum years to maturity
2.62.25.04.9
____________________________________
(1)    As of March 31, 2021, 100% of the Company’s CRE loans by principal balance earned a floating rate of interest, primarily indexed to U.S. dollar LIBOR.
(2)    Maximum maturity date assumes all extension options are exercised by the borrower; however, the Company’s CRE loans may be repaid prior to such date.
Activity relating to the Company’s loans held-for-investment portfolio was as follows (dollar amounts in thousands):
Principal Balance
Deferred Fees / Other Items (1)
Loan Fees ReceivableNet Book Value
Balance, December 31, 2020$959,215 $(74,116)$7,167 $892,266 
Loan originations and acquisitions268,214 — — 268,214 
Cure payments receivable (2)
— (7,351)— (7,351)
Sale of loans(7,594)38 — (7,556)
Principal repayments received (51,650)— — (51,650)
Capitalized interest (2)
(9,469)— — (9,469)
Deferred fees and other items
— (2,461)— (2,461)
Accretion and amortization of fees and other items
— 584 — 584 
Foreclosure of assets (2)
(127,320)3,831 (7,167)(130,656)
Allowance for credit losses (3)
— 57,470 — 57,470 
Balance, March 31, 2021
$1,031,396 $(22,005)$— $1,009,391 
____________________________________
(1)    Other items primarily consist of allowance for credit losses (as discussed below), purchase discounts or premiums, accretion of exit fees and deferred origination expenses.
(2)    During the three months ended March 31, 2021, the Company completed foreclosure of the assets which previously secured its eight mezzanine loans.
(3)    Includes the reversal of the allowance for credit losses related to the mezzanine loans upon foreclosure of the assets which previously secured the loans, as further discussed below in “Allowance for Credit Losses,” partially offset by the increase in allowance for credit losses related to the Company’s loans held-for-investment during the three months ended March 31, 2021.
The following table presents the activity in the Company’s allowance for credit losses by loan type for the three months ended March 31, 2021 (dollar amounts in thousands):
Mezzanine LoansSenior LoansBroadly Syndicated LoansTotal
Allowance for credit losses as of December 31, 2020$58,038 $2,590 $9,730 $70,358 
Foreclosure of assets (1)
(58,038)— — (58,038)
Provision for credit losses— 1,295 (727)568 
Allowance for credit losses as of March 31, 2021$— $3,885 $9,003 $12,888 
____________________________________
(1)    During the three months ended March 31, 2021, the Company completed foreclosure of the assets which previously secured its eight mezzanine loans.
Schedule of financing receivable credit quality indicators The following table presents the net book value of the Company’s loans held-for-investment portfolio as of March 31, 2021 by year of origination, loan type, and risk rating (dollar amounts in thousands):
Amortized Cost of Loans Held-For-Investment by Year of Origination (1)
As of March 31, 2021
Number of Loans202120202019Total
Senior loans by internal risk rating:
1—— — — — 
2—— — — — 
36176,908 232,573 115,966 525,447 
4—— — — — 
5—— — — — 
Total senior loans6176,908 232,573 115,966 525,447 
Broadly syndicated loans by internal risk rating:
1—— — — — 
23— 6,906 — 6,906 
321664,986 415,232 3,057 483,275 
42— 6,651 — 6,651 
5—— — — — 
Total broadly syndicated loans22164,986 428,789 3,057 496,832 
Less: Allowance for credit losses(12,888)
Total loans held-for-investment and related receivables, net227$1,009,391 
Weighted Average Risk Rating (2)
3.0 
____________________________________
(1)    Date loan was originated or acquired by the Company. Origination dates are subsequently updated to reflect material loan modifications.
(2)    Weighted average risk rating calculated based on carrying value at period end.