10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)
x	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2016

 OR

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission file number: 000-55188

REALTY FINANCE TRUST, INC.

(Exact name of registrant as specified in its charter) 

Maryland	46-1406086
(State or Other Jurisdiction of Incorporation or Organization)	(I.R.S. Employer Identification No.)
405 Park Avenue, 14th Floor New York, New York	10022
(Address of Principal Executive Office)	(Zip Code)

(212) 415-6500

(Registrant’s Telephone Number, Including Area Code)

Not applicable

(Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report)

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).Yes x No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See the definitions of "large accelerated filer," "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act. (check one):

Large accelerated filer o	Accelerated filer o
Non-accelerated filer o	Smaller reporting company x

(Do not check if a smaller reporting company)

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No x

The number of shares of the registrant's common stock, $0.01 par value, outstanding as of April 30, 2016 was 31,732,229.

TABLE OF CONTENTS

	Page
PART I
Item 1. Consolidated Financial Statements and Notes (unaudited)	1
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations	22
Item 3. Quantitative and Qualitative Disclosures about Market Risk	38
Item 4. Controls and Procedures	38
PART II
Item 1. Legal Proceedings	39
Item 1A. Risk Factors	39
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	39
Item 3. Defaults Upon Senior Securities	40
Item 4. Mine Safety Disclosures	40
Item 5. Other Information	40
Item 6. Exhibits	41
Signatures	42

i

PART I

Item 1. Consolidated Financial Statements.

REALTY FINANCE TRUST, INC.

CONSOLIDATED BALANCE SHEETS

(In thousands, except for share and per share data)

	March 31, 2016			December 31, 2015
ASSETS	(Unaudited)
Cash and cash equivalents	$	49,207		$	14,807
Restricted cash	6,498			5,366
Commercial mortgage loans, held for investment, net of allowance of $1,053 and $888 (1)	1,126,350			1,124,201
Real estate securities, available for sale, at fair value	124,871			130,754
Receivable for loan repayment	3			1,307
Accrued interest receivable (2)	5,160			5,360
Prepaid expenses and other assets	649			689
Total assets	$	1,312,738		$	1,282,484
LIABILITIES AND STOCKHOLDERS' EQUITY
Collateralized loan obligations	$	287,320		$	287,229
Repurchase agreements - commercial mortgage loans	243,583			206,239
Repurchase agreements - real estate securities	120,449			117,211
Interest payable (3)	924			792
Distributions payable	5,530			5,552
Accounts payable and accrued expenses	1,340			6,805
Due to affiliates	4,403			4,327
Total liabilities	663,549			628,155
Commitment and Contingencies (See Note 8)
Preferred stock, $0.01 par value, 50,000,000 authorized, none issued and outstanding as of March 31, 2016 and December 31, 2015	—			—
Convertible stock ("promote shares"); $0.01 par value, 1,000 shares authorized, issued and outstanding as of March 31, 2016 and December 31, 2015	1			1
Common stock, $0.01 par value, 949,999,000 shares authorized, 31,645,633 and 31,385,280 shares issued and outstanding as of March 31, 2016 and December 31, 2015, respectively	316			314
Additional paid-in capital	698,171			691,590
Accumulated other comprehensive loss	(7,218		)	(2,254		)
Accumulated deficit	(42,081		)	(35,322		)
Total stockholders' equity	649,189			654,329
Total liabilities and stockholders' equity	$	1,312,738		$	1,282,484

⁽¹⁾  Includes $426,447 and $426,155 of loans pledged as collateral on collateralized loan obligations ("CLO"), a variable interest entity ("VIE") as of March 31, 2016 and December 31, 2015, respectively.

⁽²⁾  Includes $1,076 and $1,048 of interest receivable for loans pledged as collateral on CLO, a VIE as of March 31, 2016 and December 31, 2015, respectively.

⁽³⁾  Includes $530 and $513 of interest payable for loans pledged as collateral on CLO, a VIE as of March 31, 2016 and December 31, 2015, respectively.

The accompanying notes are an integral part of these unaudited consolidated financial statements.

1

REALTY FINANCE TRUST, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except for share and per share data)

(Unaudited)

	Three Months Ended March 31,
	2016		2015
Interest Income:
Interest income	$	20,291	$	9,605
Less: Interest expense	4,768		1,933
Net interest income	15,523		7,672
Expenses:
Asset management and subordinated performance fee	3,010		362
Acquisition fees	157		1,032
Administrative services expenses	816		—
Professional fees	1,261		1,379
Other expenses	694		123
Loan loss provision	165		144
Total expenses	6,103		3,040
Income before income taxes	9,420		4,632
Income tax provision	—		—
Net income	$	9,420	$	4,632
Basic net income per share	$	0.30	$	0.27
Diluted net income per share	$	0.30	$	0.27
Basic weighted average shares outstanding	31,548,897		17,279,713
Diluted weighted average shares outstanding	31,555,011		17,284,086

The accompanying notes are an integral part of these unaudited consolidated financial statements.

2

REALTY FINANCE TRUST, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In thousands)

(Unaudited)

	Three Months Ended March 31,
	2016			2015
Net income	$	9,420		$	4,632
Unrealized (loss)/gain on available-for-sale securities	(4,964		)	141
Comprehensive income attributable to Realty Finance Trust, Inc.	$	4,456		$	4,773

The accompanying notes are an integral part of these unaudited consolidated financial statements.

3

REALTY FINANCE TRUST, INC.

CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY

(In thousands, except for share data)

(Unaudited)

	Convertible Stock			Common Stock
	Number of Shares	Amount		Number of Shares	Par Value		Additional Paid-In Capital			Accumulated Other Comprehensive Loss			Accumulated Deficit			Total Stockholders' Equity
Balance, December 31, 2015	1,000	1		31,385,280	314		691,590			(2,254		)	(35,322		)	654,329
Issuance of common stock	—	—		—	—					—			—			—
Common stock repurchases	—	—		—	—		(8		)	—			—			(8		)
Common stock offering costs, commissions and dealer manager fees	—	—		—	—		—			—			—			—
Common stock issued through distribution reinvestment plan	—	—		260,353	2		6,580			—			—			6,582
Share-based compensation	—	—		—	—		9			—			—			9
Net income	—	—		—	—		—			—			9,420			9,420
Distributions declared	—	—		—	—								(16,179		)	(16,179		)
Other comprehensive loss	—	—		—	—		—			(4,964		)	—			(4,964		)
Balance, March 31, 2016	1,000	$	1	31,645,633	$	316	$	698,171		$	(7,218	)	$	(42,081	)	$	649,189

The accompanying notes are an integral part of these unaudited consolidated financial statements.

4

REALTY FINANCE TRUST, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

	Three Months Ended March 31,
	2016			2015
Cash flows from operating activities:
Net income	$	9,420		$	4,632
Adjustments to reconcile net income to net cash provided by operating activities:
Premium amortization and (discount accretion), net	(575		)	(189		)
Accretion of deferred commitment fees	(382		)	(145		)
Amortization of deferred financing costs	541			479
Share-based compensation	9			6
Loan loss provision	165			144
Changes in assets and liabilities:
Accrued interest receivable	582			705
Prepaid expenses and other assets	(35		)	859
Accounts payable and accrued expenses	155			(364		)
Due to affiliates	76			(894		)
Interest payable	132			25
Net cash provided by operating activities	$	10,088		$	5,258
Cash flows from investing activities:
Origination and purchase of commercial mortgage loans	$	(9,697	)	$	(116,434	)
Purchase of real estate securities	—			(8,016		)
Principal repayments received on commercial mortgage loans	9,253			14,321
Principal repayments received on real estate securities	928			—
Net cash provided by (used in) investing activities	$	484		$	(110,129	)
Cash flows from financing activities:
Proceeds from issuances of common stock	$	—		$	92,806
Common stock repurchases	(6,003		)	(144		)
Payments of offering costs and fees related to common stock issuances	—			(9,178		)
Borrowings on repurchase agreements - commercial mortgage loans	85,614			38,376
Repayments of repurchase agreements - commercial mortgage loans	(48,270		)	(6,238		)
Borrowings on repurchase agreements - real estate securities	319,001			99,560
Repayments of repurchase agreements - real estate securities	(315,763		)	(88,095		)
Increase in restricted cash related to financing activities	(1,132		)	—
Payments of deferred financing costs	—			(750		)
Distributions paid	(9,619		)	(4,697		)
Net cash provided by financing activities	$	23,828		$	121,640
Net change in cash	$	34,400		$	16,769
Cash, beginning of period	14,807			386
Cash, end of period	$	49,207		$	17,155
Supplemental disclosures of cash flow information:
Income taxes paid	$	—		$	9
Interest paid	4,095			2,471
Supplemental disclosures of non-cash flow information:
Distributions payable	$	5,530		$	3,269
Common stock issued through distribution reinvestment plan	6,582			3,445
Receivable for common stock issued	—			3,006

The accompanying notes are an integral part of these unaudited consolidated financial statements.

5

REALTY FINANCE TRUST, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2016

(Unaudited)

Note 1 - Organization and Business Operations

Realty Finance Trust, Inc. (the "Company") was incorporated in Maryland on November 15, 2012 and conducts its operations to qualify as a real estate investment trust ("REIT") for U.S. federal income tax purposes beginning with the taxable year ended December 31, 2013. Substantially all of the Company's business is conducted through Realty Finance Operating Partnership, L.P. (the “OP”), a Delaware limited partnership. Realty Finance Advisors, LLC is the Company's advisor (the "Advisor"). The Company is the sole general partner and directly or indirectly hold all of the units of limited partner interests in the OP. Additionally, the Advisor contributed $1,000 to the Company in exchange for 1,000 convertible shares of Realty Finance Trust, Inc. The convertible shares will automatically convert to shares of the Company's common stock upon the first occurrence of any of the following triggering events, (each a "Triggering Event"): (i) the Company has paid total distributions on the then-outstanding shares of the Company's common stock in an amount equal to or in excess of the sum of the invested capital (as defined in the Company's charter) plus an aggregate 6.0% cumulative, pre-tax, non-compounded, annual return on such invested capital, (ii) a listing of the Company's shares of common stock on a national securities exchange or (iii) the termination of the Company's advisory agreement under certain circumstances. The Company did not incur any of the aforementioned trigger events to date.

Prior to January 2016 the Company was offering for sale a maximum of 80.0 million shares of common stock, $0.01 par value per share, on a reasonable best efforts basis, pursuant to a registration statement on Form S-11 (the "Offering") filed with the U.S. Securities and Exchange Commission under the Securities Act of 1933, as amended. The Offering also covered the offer and sale of up to approximately 16.8 million shares of common stock pursuant to a distribution reinvestment plan (the "DRIP") under which common stockholders may elect to have their distributions reinvested in additional shares of the Company’s common stock. Effective January 2016, the Company terminated the Offering, deregistered 4,069 unsold shares from the Offering and reallocated 49.7 million unsold shares from the Offering to the DRIP offering.

The Company is in business to originate, acquire and manage a diversified portfolio of commercial real estate debt secured by properties located both within and outside of the United States. The Company also invests in commercial real estate securities. Commercial real estate debt may include first mortgage loans, subordinated mortgage loans, mezzanine loans and participations in such loans. Real estate securities may include commercial mortgage-backed securities ("CMBS"), senior unsecured debt of publicly traded REITs, debt or equity securities of other publicly traded real estate companies and collateralized debt obligations ("CDOs").

The Company has no employees. The Company has retained the Advisor to manage the Company's affairs on a day-to-day basis. The Advisor is controlled by AR Global Investments, LLC ("AR Global"), the parent of American Realty Capital VIII, LLC (the "Sponsor"), as a result of which they are related parties and each of them has received or will receive compensation and fees for services related to the investment and management of the Company's assets, the operations of the Company and the liquidation of the Company.

Note 2 - Summary of Significant Accounting Policies

Basis of Accounting

The accompanying consolidated financial statements and related footnotes are unaudited and have been prepared on the accrual basis of accounting in conformity with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial statements and pursuant to the requirements for reporting on Form 10-Q and Regulation S-X, as appropriate. Accordingly, the consolidated financial statements may not include all of the information and notes required by GAAP for annual consolidated financial statements. GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the reported periods. Changes in the economic environment, financial markets and any other parameters used in determining these estimates could cause actual results to differ materially. In the opinion of management, the interim data includes all adjustments, of a normal and recurring nature, necessary for a fair statement of the results for the periods presented. The current period’s results of operations will not necessarily be indicative of results that ultimately may be achieved for the entire year or any subsequent interim periods.

6

REALTY FINANCE TRUST, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2016

(Unaudited)

These financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto as of, and for the year ended December 31, 2015, which are included in the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission ("SEC") on March 11, 2016. There have been no significant changes to the Company's significant accounting policies during the three months ended March 31, 2016, other than the updates described below.

Principles of Consolidation

The Company consolidate all entities that the Company control through either majority ownership or voting rights. In addition, the Company consolidates all variable interest entities ("VIE") of which the Company is considered the primarily beneficiary. VIEs are defined as entities in which equity investors (i) do not have the characteristics of a controlling financial interest and/or (ii) do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties. The entity that consolidates a VIE is known as its primary beneficiary and is generally the entity with (i) the power to direct the activities that most significantly affect the VIE’s economic performance and (ii) the right to receive benefits from the VIE or the obligation to absorb losses of the VIE that could be significant to the VIE.

The accompanying consolidated financial statements include the accounts of the Company, its wholly owned subsidiary, Realty Finance Operating Partnership, L.P. (the "OP") and its subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation.In determining whether the Company has a controlling financial interest in a joint venture and the requirement to consolidate the accounts of that entity, management considers factors such as ownership interest, authority to make decisions and contractual and substantive participating rights of the other partners or members as well as whether the entity is a variable interest entity ("VIE") for which the Company is the primary beneficiary. The Company has determined the OP is a VIE of which the Company is the primary beneficiary. Substantially all of the Company's assets and liabilities are held by the OP.

The accompanying consolidated financial statements include the accounts of a collateralized loan obligation ("CLO") issued and securitized by a wholly owned subsidiary of the Company. The Company has determined the CLO is a VIE of which the Company's subsidiary is the primary beneficiary. The Company has disclosed the assets and liabilities of the CLO on the face of the balance sheet in accordance with ASC 810 - Consolidation.

Allowance for Loan Losses

The allowance for loan losses reflects management's estimate of loan losses inherent in the loan portfolio as of the balance sheet date. The reserve is increased through the loan loss provision on the Company's consolidated statement of operations and is decreased by charge-offs when losses are confirmed through the receipt of assets, such as cash in a pre-foreclosure sale or upon ownership control of the underlying collateral in full satisfaction of the loan upon foreclosure or when significant collection efforts have ceased. The Company uses a uniform process for determining its allowance for loan losses. The allowance for loan losses includes a general, formula-based component and an asset-specific component.

General reserves are recorded when (i) available information as of each balance sheet date indicates that it is probable a loss has occurred in the portfolio and (ii) the amount of the loss can be reasonably estimated. The Company currently estimates loss rates based on historical realized losses experienced in the industry and takes into account current collateral and economic conditions affecting the probability and severity of losses when establishing the allowance for loan losses. The Company performs a comprehensive analysis of its loan portfolio and assigns risk ratings to loans that incorporate management's current judgments about their credit quality based on all known and relevant internal and external factors that may affect collectability. The Company considers, among other things, payment status, lien position, borrower financial resources and investment in collateral, collateral type, project economics and geographic location as well as national and regional economic factors. This methodology results in loans being segmented by risk classification into risk rating categories that are associated with estimated probabilities of default and principal loss. Ratings range from "1" to "5" with "1" representing the lowest risk of loss and "5" representing the highest risk of loss.

The asset-specific reserve component relates to reserves for losses on individual impaired loans. The Company considers a loan to be impaired when, based upon current information and events, it believes that it is probable that the Company will be unable to collect all amounts due under the contractual terms of the loan agreement. This assessment is made on an individual loan basis each quarter based on such factors as payment status, lien position, borrower financial resources and investment in collateral, collateral type, project economics and geographical location as well as national and regional economic factors. A reserve is established for an impaired loan when the present value of payments expected to be received, observable market prices or the estimated fair value of the collateral (for loans that are dependent on the collateral for repayment) is lower than the carrying value of that loan.

7

REALTY FINANCE TRUST, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2016

(Unaudited)

For collateral dependent impaired loans, impairment is measured using the estimated fair value of collateral less the estimated cost to sell. Valuations are performed or obtained at the time a loan is determined to be impaired and designated non-performing, and they are updated if circumstances indicate that a significant change in value has occurred. The Advisor generally will use the income approach through internally developed valuation models to estimate the fair value of the collateral for such loans. In more limited cases, the Advisor will obtain external "as is" appraisals for loan collateral, generally when third party participations exist.

A loan is also considered impaired if its terms are modified in a troubled debt restructuring ("TDR"). A TDR occurs when a concession is granted and the debtor is experiencing financial difficulties. Impairments on TDR loans are generally measured based on the present value of expected future cash flows discounted at the effective interest rate of the original loans.

The Company designates non-performing loans at such time as (i) loan payments become 90-days past due; (ii) the loan has a maturity default; or (iii) in the opinion of the Company, it is probable the Company will be unable to collect all amounts due according to the contractual terms of the loan. Income recognition will be suspended when a loan is designated non-performing and resumed only when the suspended loan becomes contractually current and performance is demonstrated to have resumed. A loan will be written off when it is no longer realizable and legally discharged.

Per Share Data

The Company calculates basic earnings per share by dividing net income attributable to the Company for the period by the weighted-average number of shares of common stock outstanding for that period. Diluted earnings per share reflects the potential dilution that could occur from shares issuable in connection with the restricted stock plan and if convertible shares were exercised, except when doing so would be anti-dilutive.

Reportable Segments

The Company conducts its business through the following segments:

• The real estate debt business which is focused on originating, acquiring and asset managing commercial real estate debt investments, including first mortgage loans, subordinate mortgages, mezzanine loans and participations in such loans.

• The real estate securities business which is focused on investing in and asset managing commercial real estate securities primarily consisting of CMBS and may include unsecured REIT debt, CDO notes and other securities.

See Note 12 - Segment Reporting for further information regarding the Company's segments.

Recently Issued Accounting Pronouncements

In February 2015, the FASB amended the accounting for consolidation of certain legal entities. The amendments modify the evaluation of whether certain legal entities are VIEs or voting interest entities, eliminate the presumption that a general partner should consolidate a limited partnership and affect the consolidation analysis of reporting entities that are involved with VIEs (particularly those that have fee arrangements and related party relationships). The revised guidance is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. Early adoption was permitted, including adoption in an interim period. The Company elected to adopt this guidance effective January 1, 2016. The Company has evaluated the impact of the adoption of the new guidance on its consolidated financial statements and has determined the Company’s OP is considered a VIE. However, the Company meets the disclosure exemption criteria as the Company is the primary beneficiary of the VIE and the Company's partnership interest is considered a majority voting interest in a business and the assets of the OP can be used for purposes other than settling its obligation, such as paying distributions. As such, the new guidance did not have a material impact on the Company's consolidated financial statements.

In March 2016, the FASB issued an update that changes the accounting for certain aspects of share-based compensation. Among other things, the revised guidance allows companies to make an entity-wide accounting policy election to either estimate the number of awards that are expected to vest or account for forfeitures when they occur. The revised guidance is effective for reporting periods beginning after December 15, 2016. Early adoption is permitted. The Company is currently evaluating impact of this new guidance, however, adoption of the guidance is not expected to have material impact to the Company's consolidated financial statements.

8

REALTY FINANCE TRUST, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2016

(Unaudited)

Note 3 - Commercial Mortgage Loans

The following table is a summary of the Company's commercial mortgage loan carrying values by class (in thousands):

	March 31, 2016		December 31, 2015
Senior loans	$	901,272	$	894,075
Mezzanine loans	216,131		221,014
Subordinated loans	10,000		10,000
Total gross carrying value of loans	1,127,403		1,125,089
Less: Allowance for loan losses	1,053		888
Total commercial mortgage loans, net	$	1,126,350	$	1,124,201

The following table presents the activity in the Company's allowance for loan losses (in thousands):

	Three Months Ended March 31, 2016		Three Months Ended March 31, 2015
Beginning of period	$	888	$	570
Provision for loan losses	165		144
Charge-offs	—		—
Recoveries	—		—
Ending allowance for loan losses	$	1,053	$	714

As of March 31, 2016 and December 31, 2015, the Company's commercial mortgage loan portfolio comprised 76 and 77 loans, respectively.

	March 31, 2016				December 31, 2015
Loan Type	Par Value		Percentage		Par Value		Percentage
Office	$	312,957	27.5	%	$	307,876	27.2	%
Multifamily	302,436		26.6	%	305,129		26.9	%
Hospitality	172,086		15.1	%	171,752		15.1	%
Retail	159,476		14.0	%	158,784		14.0	%
Mixed Use	136,925		12.1	%	138,798		12.2	%
Industrial	52,313		4.7	%	52,107		4.6	%
	$	1,136,193	100.0	%	$	1,134,446	100.0	%

Credit Characteristics

As part of the Company's process for monitoring the credit quality of its loans, it performs a quarterly loan portfolio assessment and assigns risk ratings to each of its loans. The loans are scored on a scale of 1 to 5 as follows:

Investment Rating	Summary Description
1	Investment exceeding fundamental performance expectations and/or capital gain expected. Trends and risk factors since time of investment are favorable.
2	Performing consistent with expectations and a full return of principal and interest expected. Trends and risk factors are neutral to favorable.
3	Performing investments requiring closer monitoring. Trends and risk factors show some deterioration.
4	Underperforming investment with some loss of interest expected but still expecting a positive return on investment. Trends and risk factors are negative.
5	Underperforming investment with expected loss of interest and some principal.

All commercial mortgage loans are assigned an initial risk rating of 2.0. As of March 31, 2016 and December 31, 2015, the weighted average risk rating of loans was 2.0 and 2.0, respectively. As of March 31, 2016 and December 31, 2015, the Company did not have any loans that were past due on their payments, in non-accrual status or impaired.

9

REALTY FINANCE TRUST, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2016

(Unaudited)

For the three months endedMarch 31, 2016 and March 31, 2015, the activity in the Company's loan portfolio was as follows (in thousands):

	Three Months Ended March 31, 2016			Three Months Ended March 31, 2015
Balance at Beginning of Year	$	1,124,201		$	456,884
Acquisitions and originations	9,697			116,434
Dispositions	—			—
Principal repayments	(7,949		)	(14,321		)
Discount accretion and premium amortization*	566			205
Provision for loan losses	(165		)	(144		)
Balance at End of Period	$	1,126,350		$	559,058

________________________

* Includes amortization of capitalized acquisition fees and expenses.

Note 4 - Real Estate Securities

The following is a summary of the Company's real estate securities, CMBS (in thousands):

		Weighted Average
	Number of Investments	Interest Rate		Maturity	Par Value		Fair Value
March 31, 2016	16	4.81	%	January 2019	$	132,255	$	124,871
December 31, 2015	16	4.71	%	February 2019	133,183		130,754

The Company classified its CMBS as available-for-sale as of March 31, 2016 and December 31, 2015. These investments are reported at fair value in the balance sheet with changes in fair value recorded in accumulated other comprehensive income or loss. The following table shows the amortized cost, unrealized gains/losses and fair value of the Company's CMBS investments as of March 31, 2016 and December 31, 2015(in thousands):

	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
March 31, 2016	$	132,089	$	8	$	(7,226	)	$	124,871
December 31, 2015	133,008		—		(2,254		)	130,754

As of March 31, 2016, the Company held 16 CMBS positions for an aggregate carrying value of $132.1 million, with an unrealized loss of $7.2 million, of which 7 positions had a total unrealized loss of $0.2 million for a period greater than 12 months.

Note 5 - Debt

Repurchase Agreements - Commercial Mortgage Loans

The Company entered into repurchase facilities with JPMorgan Chase Bank, National Association (the "JPM Repo Facility") and Barclays Bank PLC (the "Barclays Repo Facility"). The JPM Repo Facility provides up to $150.0 million in advances. The Barclays Repo Facility provides up to $150.0 million in advances. Both, the JPM Repo Facility and Barclays Repo Facility are subject to adjustments. The Company expects to use advances from the JPM Repo Facility and the Barclays Repo Facility to finance the acquisition or origination of eligible loans, including first mortgage loans, subordinated mortgage loans, mezzanine loans and participation interests therein. The initial maturity date of the JPM Repo Facility is June 18, 2016, with a one year extension at the Company’s option, which may be exercised upon the satisfaction of certain conditions. The Company entered into an amendment of the Barclays Repo Facility, dated as of May 12, 2016 (the “Barclays Amendment”), pursuant to which the maturity date of the Barclays Repo Facility was extended to September 6, 2016, and the pricing rate for each purchased asset was increased by 0.50% per annum. There are twosix months extensions remaining under the Barclays Repo Facility, which may be granted by the lender in its sole discretion upon the satisfaction of certain conditions. As of March 31, 2016, the Company is in compliance with all debt covenants.

10

REALTY FINANCE TRUST, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2016

(Unaudited)

As of March 31, 2016 and December 31, 2015, the Company had $121.7 million and $84.3 million outstanding under the JPM Repo Facility. Advances under the JPM Repo Facility accrue interest at per annum rates equal to the sum of (i) the applicable LIBOR index rate plus (ii) a margin between 2.25% to 4.5%, depending on the attributes of the purchased assets. As of March 31, 2016 and December 31, 2015, the weighted average interest rate on advances was 2.7% and 3.1%, respectively. The Company incurred $0.8 million and $0.7 million in interest expense on the JPM Repo Facility for the three months ended March 31, 2016 and 2015, respectively.

As of March 31, 2016 and December 31, 2015, the Company had $121.9 million and $121.9 million outstanding under the Barclays Repo Facility. After giving effect to the Barclays Amendment, advances under the Barclays Repo Facility accrue interest at per annum rates equal to the sum of (i) the applicable LIBOR index rate plus (ii) a margin between 2.5% to 3.0%, depending on the attributes of the purchased assets. As of March 31, 2016 and December 31, 2015, the weighted average interest rate on advances was 2.5% and 2.4%, respectively. The Company incurred $0.8 million and $0.5 million of interest expense on the Barclays Repo Facility for the three months ended March 31, 2016 and 2015, respectively.

The JPM Repo Facility and the Barclays Repo Facility generally provide that in the event of a decrease in the value of the Company's collateral, the lenders can demand additional collateral. Should the value of the Company’s collateral decrease, whether as a result of deteriorating credit quality, an increase in credit market spreads or otherwise, resulting margin calls may cause an adverse change in the Company’s liquidity position.

Repurchase Agreements - Real Estate Securities

The Company has entered into various Master Repurchase Agreements (the "MRAs") that allow the Company to sell real estate securities while providing a fixed repurchase price for the same real estate securities in the future. The repurchase contracts on each security under an MRA generally mature in 30 to 90 days and terms are adjusted for current market rates as necessary. Below is a summary of the Company's MRAs as of March 31, 2016 and December 31, 2015 (in thousands):

							Weighted Average
Counterparty	Amount Outstanding		Accrued Interest		Collateral Pledged (*)		Interest Rate		Days to Maturity
As of March 31, 2016
J.P. Morgan Securities LLC	$	90,897	$	159	$	137,487	2.25	%	1
Citigroup Global Markets, Inc.	26,177		81		34,559		2.32	%	44
Wells Fargo Securities, LLC	3,375		3		4,500		1.79	%	13
Total/Weighted Average	$	120,449	$	243	$	176,546	2.25	%	11
As of December 31, 2015
J.P. Morgan Securities LLC	$	86,898	$	108	$	130,618	2.03	%	8
Citigroup Global Markets, Inc.	26,619		71		35,528		2.00	%	45
Wells Fargo Securities, LLC	3,694		3		4,925		1.67	%	13
Total/Weighted Average	$	117,211	$	182	$	171,071	2.01	%	17

* Includes $52,962 and $56,044 Tranche C of RFT issued CLO held by the Company, which eliminates within the Real estate securities, at fair value line of the consolidated balance sheets as of March 31, 2016 and December 31, 2015, respectively.

Collateralized Loan Obligation

On October 19, 2015, RFT 2015-FL1 Issuer, Ltd. (the “Issuer”) and RFT 2015-FL1 Co-Issuer, LLC (the “Co-Issuer”), both wholly owned indirect subsidiaries of the Company, entered into an indenture with the RFT OP, as advancing agent, U.S. Bank National Association as note administrator and U.S. Bank National Association as trustee, which governs the issuance of approximately $350.2 million principal balance secured floating rate notes (the “Notes”). In addition, concurrently with the issuance of the Notes, the Issuer also issued 78,188,494 Preferred Shares, par value of $0.001 per share and with an aggregate liquidation preference and notional amount equal to $1,000 per share (the “Preferred Shares”), which were not offered as part of closing the indenture. For U.S. federal income tax purposes, the Issuer and Co-Issuer are disregarded entities.

The Notes are collateralized by interests in a pool of 28 mortgage assets having a total principal balance of $428.4 million (the “Mortgage Assets”) originated by a subsidiary of the Company. The sale of the Mortgage Assets to the Issuer is governed

11

REALTY FINANCE TRUST, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2016

(Unaudited)

by a Mortgage Asset Purchase Agreement dated as of October 19, 2015, between the Company and the Issuer. In connection with the securitization, the Issuer and Co-Issuer offered and sold the following classes of Notes to third parties: Class A, Class B, Class C. A wholly owned subsidiary of the Company retained approximately $56.0 million of the total $76.0 million of Class C and all of the preferred equity in the Issuer. The retained Class C and its related interest income and the preferred equity are eliminated in the Company's consolidated financial statements. The Company, as the holder of preferred equity in the Issuer, will absorb the first losses of the CLO, which may have a negative impact to the Company's result of operations. The issuance of the CLO also results in an increase in interest expense within the consolidated statement of operations due to increased interest expense. The following table represents the terms of the CLO issued.

Facility ($000s)	Par Value Issued		Par Value Outstanding (*)		Interest Rate	Maturity Date
As of March 31, 2016
Tranche A	$	231,345	$	231,345	1M LIBOR + 175	8/1/2030
Tranche B	42,841		42,841		1M LIBOR + 388	8/1/2030
Tranche C	76,044		20,000		1M LIBOR + 525	8/1/2030
	$	350,230	$	294,186
As of December 31, 2015
Tranche A	$	231,345	$	231,345	1M LIBOR + 175	8/1/2030
Tranche B	42,841		42,841		1M LIBOR + 388	8/1/2030
Tranche C	76,044		20,000		1M LIBOR + 525	8/1/2030
	$	350,230	$	294,186

________________________

* Excludes $52,962 and $56,044 of Tranche C of RFT issued CLO held by the Company, which eliminates within the Real estate securities, at fair value line of the consolidated balance sheets as of March 31, 2016 and December 31, 2015, respectively.

The below represents the total assets and liabilities of the Company's only CLO. The CLO is considered a VIE and is consolidated into the Company's consolidated financial statements as of March 31, 2016 and December 31, 2015 as the Company is the primary beneficiary of the VIE. The Company is the primary beneficiary of the CLO because (i) the Company has the power to direct the activities that most significantly affect the VIE’s economic performance and (ii) the right to receive benefits from the VIE or the obligation to absorb losses of the VIE that could be significant to the VIE.

Assets ($000s)	March 31, 2016		December 31, 2015
Cash	$	5	$	5
Commercial mortgage loans, held for investment, net	426,447		426,155
Accrued interest receivable	1,076		1,048
Total Assets	$	427,528	$	427,208
Liabilities
Notes payable (1)(2)	$	343,096	$	342,998
Accrued interest payable	530		513
Total Liabilities	$	343,626	$	343,511

________________________

⁽¹⁾ Includes $55,776 and $55,769 of Tranche C of RFT issued CLO held by the Company, which eliminates within the Collateral loan obligations line of the consolidated balance sheets as of March 31, 2016 and December 31, 2015, respectively.

⁽²⁾ The balance is presented net of deferred financing cost and discount of $7,134 and $7,232 as of March 31, 2016 and December 31, 2015, respectively. The notes payable balance as of December 31, 2015 of $348,269 as disclosed in Note 5 to the consolidated financial statements included in the 2015 Form 10-K was not net of deferred financing cost of $5,271.

12

REALTY FINANCE TRUST, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2016

(Unaudited)

Note 6 - Net Income Per Share

The following table is a summary of the basic and diluted net income per share computation for the three months ended March 31, 2016 and 2015, respectively:

	Three Months Ended March 31,
	2016		2015
Net income (in thousands)	$	9,420	$	4,632
Basic weighted average shares outstanding	31,548,897		17,279,713
Unvested restricted shares	6,114		4,373
Diluted weighted average shares outstanding	31,555,011		17,284,086
Basic net income per share	$	0.30	$	0.27
Diluted net income per share	$	0.30	$	0.27

Note 7 - Common Stock

As of March 31, 2016 and December 31, 2015, the Company had 31,645,633 and 31,385,280 shares of common stock outstanding, respectively, including shares issued pursuant to the DRIP and unvested restricted shares. As of March 31, 2016 and December 31, 2015, the Company had received total proceeds of $755.5 million and $755.5 million, respectively, excluding shares issued pursuant to the DRIP and share-based compensation.

On December 30, 2014, the Company filed with the Maryland State Department of Assessments and Taxation articles supplementary to its charter that reclassified 1,000 authorized but unissued shares of the Company’s common stock as shares of convertible stock and set the terms of such convertible shares. The Company then issued 1,000 convertible shares to the Advisor for $1.00 per share. The convertible shares will automatically convert to shares of common stock upon the first occurrence of any of following triggering events (the "Triggering Event"): (i) the Company has paid total distributions on the then-outstanding shares of common stock in an amount equal to or in excess of the sum of the invested capital (as defined in the Company’s charter) plus an aggregate 6.0% cumulative, pre-tax, non-compounded, annual return on such invested capital, (ii) a listing of the Company’s shares of common stock on a national securities exchange or (iii) the termination of the Company’s advisory agreement under certain circumstances. In general, but with certain exceptions as outlined in the articles supplementary, each convertible share will convert into a number of common shares equal to 1/1000 of the quotient of (a) the conversion product (the product of 0.15 times the amount, if any, by which (i) the sum of the enterprise value as of the date of the Triggering Event plus total distributions paid to the Company’s stockholders through the date of the Triggering Event exceeds (ii) the sum of the Company's stockholders’ invested capital plus a 6.0% return as of the date of the Triggering Event) divided by (b) the quotient of the enterprise value divided by the number of shares of the Company’s common stock outstanding (on an as-converted basis) on the date of the Triggering Event. The conversion product will be reduced by the amounts payable pursuant to the annual subordinated performance fee as realized appreciation in the Company’s assets during the time that the Advisor or one of its affiliates acts as the Company’s advisor. As of March 31, 2016, the Triggering Event had not occurred.

Distributions

In order to maintain its election to qualify as a REIT, the Company must currently distribute, at a minimum, an amount equal to 90% of its taxable income, without regard to the deduction for distributions paid and excluding net capital gains. The Company must distribute 100% of its taxable income (including net capital gains) to avoid paying corporate federal income taxes.

In May 2013, the Company's board of directors authorized, and the Company declared, a distribution payable on a monthly basis to stockholders of record on each day at a rate equal to $0.00565068493 per day, which is equivalent to $2.0625 per annum, per share of common stock . In March 2016, the Company's board of directors ratified the existing distribution amount a change to the daily distribution amount equivalent to $2.0625 per annum and for calendar year 2016, affirmed a change to the daily distribution amount to $0.0056352459 per day per share of common stock, effective January 1, 2016, to accurately reflect that 2016 is a leap year. The Company's distributions are payable by the fifth day following each month end to stockholders of record at the close of business each day during the prior month. Distribution payments are dependent on the availability of funds. The Board may reduce the amount of distributions paid or suspend distribution payments at any time, and therefore, distributions payments are not assured. The Company distributed $16.2 million during the three months endedMarch 31, 2016,

13

REALTY FINANCE TRUST, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2016

(Unaudited)

comprised of $9.6 million in cash and $6.6 million in shares of common stock issued under the DRIP. The Company distributed $47.1 million during the year ended December 31, 2015, comprised of $26.9 million in cash and $20.2 million in shares of common stock issued under the DRIP.

Share Repurchase Program

The Company did not sell any equity securities that were not registered under the Securities Act during the three months endedMarch 31, 2016.

The Company's Board unanimously approved an amended and restated share repurchase program (the “SRP”), which became effective on February 28, 2016. The SRP enables stockholders to sell their shares to the Company. Subject to certain conditions, stockholders that purchased shares of the Company's common stock or received their shares from us (directly or indirectly) through one or more non-cash transactions and have held their shares for a period of at least one year may request that the Company repurchase their shares of common stock so long as the repurchase otherwise complies with the provisions of Maryland law. Repurchase requests made following the death or qualifying disability of a stockholder will not be subject to any minimum holding period.

The repurchase price per share for requests other than for death or disability will be equal to the most-recent estimated net asset value per share of the Company's common stock calculated by the Company's Advisor and approved by the Company's board of directors in accordance with the Company's valuation guidelines, or estimated per-share NAV, multiplied by a percentage equal to (i) 92.5%, if the person seeking repurchase has held his or her shares for a period greater than one year and less than two years; (ii) 95%, if the person seeking repurchase has held his or her shares for a period greater than two years and less than three years; (iii) 97.5%, if the person seeking repurchase has held his or her shares for a period greater than three years and less than four years; or (iv) 100%, if the person seeking repurchase has held his or her shares for a period greater than four years. In the case of requests for death or disability, the repurchase price per share will be equal to the estimated per-share NAV at the time of repurchase.

Repurchases pursuant to the SRP, when requested, generally will be made semiannually (each six-month period ending June 30 or December 31, a “fiscal semester”). Repurchases for any fiscal semester will be limited to a maximum of 2.5% of the weighted average number of shares of common stock outstanding during the previous fiscal year, with a maximum for any fiscal year of 5.0% of the weighted average number of shares of common stock outstanding during the previous fiscal year. Funding for repurchases pursuant to the SRP for any given fiscal semester will be limited to proceeds received during that same fiscal semester through the issuance of common stock pursuant to any DRIP in effect from time to time, provided that the Board has the power, in its sole discretion, to determine the amount of shares repurchased during any fiscal semester as well as the amount of funds to be used for that purpose. Any repurchase requests received during such fiscal semester will be paid at a price based on the Company's estimated per share NAV applicable on the last day of such fiscal semester, as described above. Due to these limitations, the Company cannot guarantee that the Company will be able to accommodate all repurchase requests made during any fiscal semester or fiscal year. However, a stockholder may withdraw its request at any time or ask that the Company honors the request when funds are available. Pending repurchase requests will be honored on a pro rata basis. The Company will generally pay repurchase proceeds, less any applicable tax or other withholding required by law, by the 31st day following the end of the fiscal semester during which the repurchase request was made.

Calculations of the Company's estimated per-share NAV will occur periodically, at the discretion of the Board, provided that such calculations will be made at least annually. Following its calculation, the Company's estimated per-share NAV will be disclosed in a periodic report. The most recent calculation of the Company's estimated per-share NAV approved by the Board occurred on November 4, 2015 based on the Company's net asset value as of September 30, 2015 and was equal to $25.27.

When a stockholder requests redemption and the redemption is approved, the Company will reclassify such obligation from equity to a liability based on the settlement value of the obligation. Shares repurchased under the SRP will have the status of authorized but unissued shares.

14

REALTY FINANCE TRUST, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2016

(Unaudited)

The following table reflects the number of shares repurchased under the SRP cumulatively through March 31, 2016:

	Number of Requests	Number of Shares Repurchased	Average Price per Share
Cumulative as of December 31, 2015	301	381,474	23.72
January 1 - January 31, 2016	—	—	—
February 1 - February 29, 2016	—	—	—
March 1 - March 31, 2016	—	—	—
Cumulative as of March 31, 2016	301	381,474	23.72

Note 8 - Commitments and Contingencies

Unfunded Commitments Under Commercial Mortgage Loans

As of March 31, 2016 and December 31, 2015, the Company had the below unfunded commitments which will generally be funded to finance capital expenditures by the Company's borrowers.

Funding Expiration	March 31, 2016		December 31, 2015
2016	$	468	$	890
2017	13,052		16,072
2018	99,079		104,428
2019	16,032		16,939
2020	—		—
2021	—		—
Total	$	128,631	$	138,329

Litigation and Regulatory Matters

In the ordinary course of business, the Company may become subject to litigation, claims and regulatory matters. The Company has no knowledge of material legal or regulatory proceedings pending or known to be contemplated against the Company at this time.

Note 9 - Related Party Transactions and Arrangements

As of March 31, 2016 and December 31, 2015, an entity wholly-owned by the Sponsor owned 8,888 shares of the Company’s outstanding common stock.

Realty Capital Securities, LLC (the "Former Dealer Manager") served as the dealer manager of the Company's Offering through December 31, 2015.  American National Stock Transfer, LLC, a subsidiary of the parent company of the Former Dealer Manager ("ANST"), provided the Company with transfer agency services through February 2016. RCS Capital Corporation, the parent company of the Company's Former Dealer Manager and certain of its affiliates that provided the Company with services, filed for Chapter 11 bankruptcy protection in January 2016, prior to which it was also under common control with AR Global, the parent of the Company's Sponsor.

15

REALTY FINANCE TRUST, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2016

(Unaudited)

Fees Paid in Connection with the Offering

The Former Dealer Manager received fees and compensation in connection with the sale of the Company’s common stock in the Offering. The Former Dealer Manager received a selling commission of up to 7% of the per share purchase price of the Company's offering proceeds before reallowance of commissions earned by soliciting dealers. In addition, the Former Dealer Manager received up to 3% of the gross proceeds from the sale of shares, before reallowance to soliciting dealers, as a dealer manager fee. The Former Dealer Manager was permitted to reallow its dealer manager fee to such soliciting dealers. A soliciting dealer was permitted to elect to receive a fee equal to 7.5% of the gross proceeds from the sale of shares (not including selling commissions and dealer manager fees) by such soliciting dealer, with 2.5% thereof paid at the time of such sale and 1% thereof paid on each anniversary of the closing of such sale up to and including the fifth anniversary of the closing of such sale. If this option was elected, the dealer manager fee was reduced to 2.5% of gross proceeds (not including selling commissions and Former Dealer Manager fees).

The predecessor to AR Global is a party to a services agreement with RCS Advisory Services, LLC, a subsidiary of the parent company of the Former Dealer Manager (“RCS Advisory”), pursuant to which RCS Advisory and its affiliates provided the Company and certain other companies sponsored by AR Global with services (including, without limitation, transaction management, compliance, due diligence, event coordination and marketing services, among others) on a time and expenses incurred basis or at a flat rate based on services performed. The predecessor to AR Global instructed RCS Advisory to stop providing such services in November 2015 and no services have since been provided by RCS Advisory.

The Company was also party to a transfer agency agreement with American National Stock Transfer, LLC, a subsidiary of the parent company of the Former Dealer Manager (“ANST”), pursuant to which ANST provided the Company with transfer agency services (including broker and stockholder servicing, transaction processing, year-end IRS reporting and other services), and supervisory services overseeing the transfer agency services performed by a third-party transfer agent. AR Global received written notice from ANST on February 10, 2016 that it would wind down operations by the end of the month and would withdraw as the transfer agent effective February 29, 2016. Subsequently, effective February 26, 2016, the Company entered into a definitive agreement with DST Systems, Inc., a third-party and its previous provider of sub-transfer agency services, to  provide the Company directly with transfer agency services (including broker and stockholder servicing, transaction processing, year-end IRS reporting and other services).

The table below shows the compensation and reimbursement to the Advisor, its affiliates, entities under common control with the Advisor and the Former Dealer Manager incurred for services relating to the Offering during the three months ended March 31, 2016 and 2015, respectively, and the associated payable as of March 31, 2016 and December 31, 2015, respectively (in thousands):

	Three Months Ended March 31,				Payable as of
	2016		2015		March 31, 2016		December 31, 2015
Total commissions and fees incurred from the Former Dealer Manager	$	—	$	9,247	$	—	$	—
Total compensation and reimbursement for services provided by the Advisor, its affiliates, entities under common control with the Advisor and the Former Dealer Manager	$	—	$	1,962	$	472	$	480

The payables as of March 31, 2016 and December 31, 2015 in the table above are included in "Due to affiliates" on the Company's consolidated balance sheets. The fees incurred are recorded within additional paid in capital line in the consolidated balance sheets.

The Company is responsible for organizational and offering costs from the ongoing Offering, excluding commissions and Former Dealer Manager fees, up to a maximum of 2.0% of gross proceeds from its ongoing Offering of common stock, measured at the end of the Offering. Organizational and offering costs in excess of the 2.0% cap as of the end of the Offering are the Advisor's responsibility. As of March 31, 2016 and December 31, 2015, organizational and offering costs exceeded 2.0% of cap of gross proceeds received from the Offering by $0.8 million and $0.8 million, respectively which has been recorded in Additional Paid-In Capital of the Company's financial statements as the Advisor has not reimbursed the Company for these costs.

16

REALTY FINANCE TRUST, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2016

(Unaudited)

Fees Paid in Connection with the Operations of the Company

The Advisor receives an acquisition fee of 1.0% of the principal amount funded by the Company to originate or acquire commercial mortgage loans and 1.0% of the anticipated net equity funded by the Company to acquire real estate securities. The Company reimburses the Advisor for expenses incurred by the Advisor on behalf of the Company related to selecting, evaluating, originating and acquiring investments in an amount up to 0.5% of the principal amount funded by the Company to originate or acquire commercial mortgage loans and up to 0.5% of the anticipated net equity funded by the Company to acquire real estate securities investments. In no event will the total of all acquisition fees and acquisition expenses exceed 4.5% of the principal amount funded with respect to the Company's total portfolio including subsequent fundings to investments in the Company's portfolio. During the three months endedMarch 31, 2016 and 2015, acquisition fees of $0.2 million and $1.0 million, respectively, have been recognized in the Acquisition fees within the consolidated statement of operations. In addition, for the three months ended March 31, 2015 the Company capitalized $0.7 million, of acquisition expenses in Commercial mortgage loans line within the Company's consolidated balance sheets, which will be amortized over the life of each investment using the effective interest method. The Company did not capitalize any acquisitions expenses for the three months ended March 31, 2016.

The Company pays the Advisor, or its affiliates, a monthly asset management fee equal to one-twelfth of 0.75% of the cost of the Company's assets. Commencing on the NAV pricing date, the asset management fee is based on the lower of the cost of the Company's assets and the fair value of the Company's assets (fair value will consist of the market value of each portfolio investment as determined by the Advisor in accordance with the Company's valuation guidelines). During the three months endedMarch 31, 2016 and 2015, the Company incurred $2.4 million and $0 in asset management fees, respectively, which are recorded in Asset management and subordinated performance fee within the statement of operations. Prior to June 17, 2015, the amount of the asset management fee was reduced to the extent that funds from operations as defined by the National Association of Real Estate Investment Trusts ("FFO"), as adjusted, during the six month period ending on the last day of the calendar quarter immediately preceding the date such asset management fee was payable, was less than distributions declared during the same period. For purposes of this determination, FFO, as adjusted, is FFO adjusted to (i) include acquisition fees and acquisition expenses; (ii) include non-cash restricted stock grant amortization, if any; and (iii) impairments and loan loss reserves on investments, if any (including commercial mortgage loans and other debt investments). FFO, as adjusted, is not the same as FFO.

The Company will pay the Advisor, an annual subordinated performance fee calculated on the basis of total return to stockholders, payable monthly in arrears, such that for any year in which total return on stockholders’ capital exceeds 6.0% per annum, the Advisor will be entitled to 15.0% of the excess total return; provided that in no event will the annual subordinated performance fee payable to the Advisor exceed 10.0% of the aggregate total return for such year. This fee will be payable only upon the sale of assets, distributions or other events which result in the Company's return on stockholders’ capital exceeding 6.0% per annum. During the three months endedMarch 31, 2016 and 2015, the Company incurred an annual subordinated performance fee of $0.6 million and $0.4 million, respectively, which are recorded in Asset management and subordinated performance fee within the statement of operations.

Effective June 1, 2013, the Company entered into an agreement with the Former Dealer Manager to provide strategic advisory services and investment banking services required in the ordinary course of the Company's business, such as performing financial analysis, evaluating publicly traded comparable companies and assisting in developing a portfolio composition strategy, a capitalization structure to optimize future liquidity options and structuring operations. The Company prepaid the cost of an one-time $0.9 million associated with this agreement and amortizes the cost over the estimated life of the Offering into Other expenses on the Company's consolidated statements of operations. For period ending December 31, 2015, the Company had approximately $6,000 of unamortized cost. There was no remaining unamortized cost as of March 31, 2016 and these services are no longer being provided.

The table below depicts related party fees and reimbursements in connection with the operations of the Company for the three months endedMarch 31, 2016 and 2015 and the associated payable as of March 31, 2016 and December 31, 2015 (in

17

REALTY FINANCE TRUST, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2016

(Unaudited)

thousands):

	Three Months Ended March 31,					Payable as of
	2016			2015		March 31, 2016		December 31, 2015
Acquisition fees and expense and others (*)	$	157		$	1,781	$	—	$	55
Administrative services and expenses	816		—	—		187		—
Advisory and investment banking fee	6			14		—		—
Asset management and subordinated performance fee	3,010			362		3,683		3,792
Other related party expenses	26			21		61		—
Total related party fees and reimbursements	$	4,015		$	2,178	$	3,931	$	3,847

________________________

* Includes amortization of capitalized acquisition fees and expenses.

The payables as of March 31, 2016 and December 31, 2015 in the table above are included in "Due to affiliates" on the Company's consolidated balance sheets.

In order to improve operating cash flows and the ability to pay distributions from operating cash flows, the Advisor may elect to waive certain fees. Because the Advisor may waive certain fees, cash flows from operations that would have been paid to the Advisor may be available to pay distributions to stockholders. The fees that may be forgiven are not deferrals and accordingly, will not be paid to the Advisor. The Advisor has also permanently waived a portion of the acquisition fees and expenses earned on the acquisition of the Company's CMBS in the amount of $0.1 million for the three months endedMarch 31, 2015. The Company did not purchase any CMBS positions during the three months ended March 31, 2016 as such did not incur any acquisition fees and expenses for CMBS purchases.

Subject to the limitations outlined below, the Company will reimburse the Advisor's cost of providing administrative services and personnel costs in connection with other services during the operational stage, in addition to paying an asset management fee; however, the Company will not reimburse the Advisor for personnel costs in connection with services for which the Advisor receives acquisition fees or disposition fees. For the three months endedMarch 31, 2016, the Company reimbursed the Advisor $0.8 million of administrative costs in connection with the operations of the Company. The Company did not incur such expense for the three months ended March 31, 2015.

The Advisor must pay any expenses in which the Company's operating expenses as defined by North American Securities Administrators Association at the end of the four preceding fiscal quarters exceeds the greater of (i) 2.0% of average invested assets or (ii) 25.0% of net income for such expense year.

Fees Paid in Connection with the Liquidation of Assets, or Listing of the Company's Common Stock or Termination of the Advisory Agreement

The Company will pay a disposition fee of 1.0% of the contract sales price of each commercial mortgage loan or other investment sold, including CMBS or CDOs issued by a subsidiary of the Company as part of a securitization transaction. The Company will not be obligated to pay a disposition fee upon the maturity, prepayment, workout, modification or extension of commercial real estate debt unless there is a corresponding fee paid by the borrower, in which case the disposition fee will be the lesser of (i) 1.0% of the principal amount of the debt prior to such transaction; or (ii) the amount of the fee paid by the borrower in connection with such transaction. If the Company takes ownership of a property as a result of a workout or foreclosure of a loan, it will pay a disposition fee upon the sale of such property.

On December 30, 2014, the Company issued 1,000 convertible shares to the Advisor for $1.00 per share. The convertible shares issued to the Advisor will automatically convert to shares of the Company’s common stock upon the first to occur of any of the Triggering Events described in Note 7.

During the three months endedMarch 31, 2016 and 2015, no fees were paid in connection with the liquidation of assets, listing of the Company's common stock or termination of the advisory agreement.

18

REALTY FINANCE TRUST, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2016

(Unaudited)

The Company has also established a restricted share plan for the benefit of employees, directors, employees of the Advisor and its affiliates.

Note 10 - Fair Value of Financial Instruments

GAAP establishes a hierarchy of valuation techniques based on the observability of inputs used in measuring financial instruments at fair values. GAAP establishes market-based or observable inputs as the preferred source of values, followed by valuation models using management assumptions in the absence of market inputs. The three levels of the hierarchy are described below:

• Level I - Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date.

• Level II - Inputs (other than quoted prices included in Level I) are either directly or indirectly observable for the asset or liability through correlation with market data at the measurement date and for the duration of the instrument’s anticipated life.

• Level III - Inputs reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. Consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs to the model.

The determination of where an asset or liability falls in the above hierarchy requires significant judgment and factors specific to the asset or liability. In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. The Company evaluates its hierarchy disclosures each quarter and depending on various factors, it is possible that an asset or liability may be classified differently from quarter to quarter.

The Company has implemented valuation control processes to validate the fair value of the Company's financial instruments measured at fair value including those derived from pricing models. These control processes are designed to assure that the values used for financial reporting are based on observable inputs wherever possible. In the event that observable inputs are not available, the control processes are designed to assure that the valuation approach utilized is appropriate and consistently applied and the assumptions are reasonable.

CMBS are valued utilizing both observable and unobservable market inputs. These factors include projected future cash flows, ratings, subordination levels, vintage, remaining lives, credit issues, recent trades of similar real estate securities and the spreads used in the prior valuation. The Company obtains current market spread information where available and uses this information in evaluating and validating the market price of all real CMBS. Depending upon the significance of the fair value inputs used in determining these fair values, these real estate securities are classified in either Level II or Level III of the fair value hierarchy. As of March 31, 2016 and December 31, 2015, the Company received broker quotes on each CMBS investment used in determining the fair value and have been classified as Level II due to the observable nature of many of the market inputs.

The following table presents the Company's financial instrument carried at fair value on a recurring basis in the consolidated balance sheet by its level in the fair value hierarchy as of March 31, 2016 and December 31, 2015 (in thousands):

	Total		Level I		Level II		Level III
March 31, 2016
Real estate securities	$	124,871	$	—	$	124,871	$	—
December 31, 2015
Real estate securities	130,754		—		130,754		—

A review of the fair value hierarchy classification is conducted on a quarterly basis. Changes in the type of inputs may result in a reclassification for certain assets. The Company's policy with respect to transfers between levels of the fair value hierarchy is to recognize transfers into and out of each level as of the beginning of the reporting period. There were no transfers between levels within fair value hierarchy during the three months endedMarch 31, 2016 and 2015. There are no financial instruments carried at fair value on a non-recurring basis as of March 31, 2016 and December 31, 2015.

The fair value of cash and cash equivalents and restricted cash are measured using observable quoted market prices, or Level I inputs. The fair value of short-term financial instruments, such as accrued interest receivable, prepaid expenses and

19

REALTY FINANCE TRUST, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2016

(Unaudited)

other assets, accounts payable and accrued expenses, distributions payable, interest payable, borrowings under repurchase agreements and due to affiliate approximate their carrying value on the consolidated balance sheets due to their short-term nature, and are measured using Level II inputs.

The fair values of the Company's commercial mortgage loans and collateralized loan obligations, which are not reported at fair value on the consolidated balance sheets are reported below as of March 31, 2016 and December 31, 2015 (in thousands):

		Level	Carrying Amount		Fair Value
March 31, 2016
Commercial mortgage loans	Asset	III	$	1,127,403	$	1,133,935
Collateralized loan obligation	Liability	II	287,320		289,080
December 31, 2015
Commercial mortgage loans	Asset	III	1,125,089		1,138,841
Collateralized loan obligation	Liability	II	287,229		289,733

The fair value of the commercial mortgage loans is estimated using a discounted cash flow analysis, based on the Advisor's experience with similar types of investments. The Company received broker quotes for each tranche of CLO to determine the fair value of the debt.

Note 11 - Offsetting Assets and Liabilities

The Company's consolidated balance sheets used a gross presentation of repurchase agreements and collateral pledged. The table below provides a gross presentation, the effects of offsetting and a net presentation of the Company's repurchase agreements within the scope of ASC 210-20, Balance Sheet—Offsetting, as of March 31, 2016 and December 31, 2015, respectively (in thousands):

							Gross Amounts Not Offset on the Balance Sheet
Repurchase Agreements	Gross Amounts of Recognized Liabilities		Gross Amounts Offset on the Balance Sheet		Net Amount of Liabilities Presented on the Balance Sheet		Financial Instruments as Collateral Pledged		Cash Collateral Pledged		Net Amount
March 31, 2016
Commercial mortgage loans	$	243,583	$	—	$	243,583	$	377,231	$	5,000	$	—
Real estate securities (*)	120,449		—		120,449		179,628		1,498		—
December 31, 2015
Commercial mortgage loans	206,239		—		206,239		355,802		5,000		—
Real estate securities (*)	117,211		—		117,211		171,071		366		—

* Includes $56,044 and $56,044 Tranche C of RFT issued CLO held by the Company, which eliminates within the Repurchase agreement-real estate securities line of the consolidated balance sheets as of March 31, 2016 and December 31, 2015, respectively.

Note 12 - Segment Reporting

The Company conducts its business through the following segments:

• The real estate debt business focuses on originating, acquiring and asset managing commercial real estate debt investments, including first mortgage loans, subordinate mortgages, mezzanine loans and participations in such loans.

• The real estate securities business focuses on investing in and asset managing commercial real estate securities primarily consisting of CMBS and may include unsecured REIT debt, CDO notes and other securities.

20

REALTY FINANCE TRUST, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2016

(Unaudited)

The following table represents the Company's operations by segment for the three months endedMarch 31, 2016 and 2015 (in thousands):

Three Months Ended March 31, 2016	Total		Real Estate Debt		Real Estate Securities
Interest income	$	20,291	$	18,676	$	1,615
Interest expense	4,768		4,091		677
Net income	9,420		9,059		361
Three Months Ended March 31, 2015
Interest income	9,605		9,196		409
Interest expense	1,933		1,804		129
Net income	4,632		4,546		86

The following table represents the Company's total assets by segment as of March 31, 2016 and December 31, 2015 (in thousands):

As of March 31, 2016	Total		Real Estate Debt		Real Estate Securities
Total Assets	$	1,312,738	$	1,186,001	$	126,737
As of December 31, 2015
Total Assets	1,282,484		1,150,858		131,626

For the purposes of the table above, any expenses not associated with a specific segment have been allocated to the business segments using a percentage derived by using the sum of commercial mortgage loans, net and real estate securities, at fair value as the denominator and commercial mortgage loans, net and real estate securities, at fair value as the numerators.

Note 13 - Subsequent Events

The Company has evaluated subsequent events through the filing of this Quarterly Report on Form 10-Q and determined that there have not been any events that have occurred that would require adjustments to disclosures in the consolidated financial statements except for the following transactions:

Distributions Paid

On April 1, 2016, the Company paid a distribution of $5.5 million to stockholders of record during the month of March 2016. The Company paid $3.3 million of the distribution in cash, while $2.2 million was used to purchase 86,595 shares through the DRIP.

Formation of Special Committee

On May 6, 2016, the Company announced that the Company’s Board, with the unanimous agreement of all directors, had recently formed a special committee, consisting exclusively of independent directors, to explore a potential strategic transaction with a related party. The Board granted the special committee the exclusive authority to consider, review, evaluate and, if appropriate, negotiate a strategic transaction on behalf of the Company. In addition, the Board granted the special committee the authority, when considering such strategic transaction, to solicit expressions of interest or other proposals for, and to consider, any alternative transactions. These transactions may include a possible sale or merger with one or more related or unrelated entities, listing the Company’s shares on a national exchange or the sale of assets.

The special committee has retained special legal counsel and is in the process of engaging a leading real estate investment banking group as financial advisor. To date, the special committee has not engaged in any substantive discussions or negotiations related to the terms of a transaction with this related party or any other party. In addition, there has not been any exchange of information or any entry into non-disclosure agreements with any party. There are no assurances that the consideration of any strategic alternative will result in a transaction. The Company does not intend to comment on or disclose developments regarding the process unless it deems further disclosure is appropriate or required.

21

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

The following discussion should be read in conjunction with the accompanying consolidated financial statements of Realty Finance Trust, Inc. The notes thereto and other financial information included elsewhere in this Quarterly Report on Form 10-Q as well as our Annual Report on Form 10-K for the fiscal year ended December 31, 2015 filed with the U.S. Securities and Exchange Commission (the "SEC") on March 11, 2016.

As used herein, the terms "we," "our" and "us" refer to Realty Finance Trust, Inc., a Maryland corporation, and, as required by context, to Realty Finance Operating Partnership, L.P., a Delaware limited partnership, which we refer to as the "OP," and to its subsidiaries. We are externally managed by Realty Finance Advisors, LLC (our "Advisor"), a Delaware limited liability company.

The forward-looking statements contained in this Quarterly Report on Form 10-Q may include, but are not limited to, statements as to:

• our business and investment strategy;

• our ability to make investments in a timely manner or on acceptable terms;

• current credit market conditions and our ability to obtain long-term financing for our investments in a timely manner and on terms that are consistent with what we project when we invest;

• the effect of general market, real estate market, economic and political conditions, including the recent economic slowdown and dislocation in the global credit markets;

• our ability to make scheduled payments on our debt obligations;

• our ability to generate sufficient cash flows to make distributions to our stockholders;

• our ability to generate sufficient debt and equity capital to fund additional investments;

• our ability to refinance our existing financing arrangements;

• the degree and nature of our competition;

• the availability of qualified personnel;

• our ability to maintain our qualification as a real estate investment trust ("REIT"); and

• other factors set forth under the caption "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2015.

In addition, words such as "anticipate," "believe," "expect" and "intend" indicate a forward-looking statement, although not all forward-looking statements include these words. The forward-looking statements contained in this Quarterly Report on Form 10-Q involve risks and uncertainties. Our actual results could differ materially from those implied or expressed in the forward-looking statements for any reason.

Our investors should not place undue reliance on these forward-looking statements. The forward-looking statements made in this Quarterly Report on Form 10-Q relate only to events as of the date on which the statements are made. We undertake no obligation to update any forward-looking statement to reflect events or circumstances occurring after the date of this Quarterly Report on Form 10-Q.

Overview

We were incorporated in Maryland on November 15, 2012 and conduct our operations to qualify as a REIT for U.S. federal income tax purposes beginning with the taxable year ended December 31, 2013. On May 14, 2013, we commenced business operations after raising in excess of $2.0 million of equity, the amount require for us to release equity proceeds from escrow. We are in business to originate, acquire and manage a diversified portfolio of commercial real estate debt secured by properties located both within and outside of the United States. We also invest in commercial real estate securities. Commercial real estate debt investments may include first mortgage loans, subordinated mortgage loans, mezzanine loans and participations in such loans. Commercial real estate securities may include CMBS, senior unsecured debt of publicly traded REITs, debt or equity securities of other publicly traded real estate companies and CDOs. We have no direct employees. We have retained the Advisor to manage our affairs on a day-to-day basis. The Advisor is under common control with the parent of the Sponsor, and will receive compensation and fees for services related to the investment and management of our assets. The Advisor receives fees during the offering, acquisition, operational and liquidation stages.

Prior to January 2016, we were offering for sale a maximum of $2.0 billion of common stock, $0.01 par value per share, on a reasonable best efforts basis, pursuant to a registration statement on Form S-11 filed with the SEC under the Securities Act of 1933, as amended (the "Securities Act"). The Offering also covered the offer and sale of up to approximately $400.0 million in shares of common stock pursuant to a DRIP under which common stockholders may elect to have their distributions reinvested

22

in additional shares of common stock. Effective January 2016, we terminated the Offering, deregistered 4,069 unsold shares from the Offering and reallocated 49.7 million unsold shares from the Offering to the DRIP offering.

Prior to the NAV Pricing Date (as described below), we offered shares of our common stock in the Offering through Realty Capital Securities, LLC (the "Former Dealer Manager") at a per share price of up to $25.00 per share (including the maximum allowed to be charged for commissions and fees, subject to certain discounts as described in our prospectus). Prior to the NAV pricing date, we offered shares of our common stock pursuant to a the DRIP at a per share price of $23.75.

On November 4, 2015, our board of directors unanimously determined an estimated NAV per share of our common stock of $25.27 as of September 30, 2015. The estimated NAV per share is based upon the estimated value of our assets less our liabilities as of September 30, 2015. The conflicts committee of the board of directors approved the engagement of Duff & Phelps, LLC, an independent third-party real estate advisory firm, who performed appraisals of our assets in accordance with our valuation guidelines. Our Advisor calculated the estimated NAV per share, and the conflicts committee of our board of directors, which is comprised solely of our independent directors, approved and recommended to our board of directors the estimated NAV per share calculated by our Advisor. The valuation was performed in accordance with the provisions of Practice Guideline 2013-01, Valuations of Publicly Registered Non-Listed REITs, issued by the Investment Program Association in April 2013.

As of close of business on November 10, 2015 (the “NAV pricing date”), pursuant to the net asset value (“NAV”) calculation described herein, we began offering shares of our common stock in the Offering at a price of up to $28.08 per share, inclusive of applicable commissions and Former Dealer Manager fees, and through the DRIP at a price equal to $25.27 per share, the NAV per share. As noted above, we have terminated the Offering. The per share price for our DRIP offering will be equal to our per share NAV, divided by the number of shares of our common stock outstanding as of such date.

We have no employees. Our Advisor has been retained by us to manage our affairs on a day-to-day basis. The Advisor is under common control with AR Global, the parent of our Sponsor, as a result of which they are related parties, and each, including our former dealer manager, Realty Capital Securities, LLC (the “Former Dealer Manager”), have received or will receive compensation, fees and expense reimbursements for services related to the Offering, the investment and management of our assets, our operations and our liquidation.

In May 6, 2016, we announced that our Board, with the unanimous agreement of all directors, had recently formed a special committee, consisting exclusively of independent directors, to explore a potential strategic transaction with a related party. The Board granted the special committee the exclusive authority to consider, review, evaluate and, if appropriate, negotiate a strategic transaction on behalf of us. In addition, the Board granted the special committee the authority, when considering such strategic transaction, to solicit expressions of interest or other proposals for, and to consider, any alternative transactions. These transactions may include a possible sale or merger with one or more related or unrelated entities, listing the our shares on a national exchange or the sale of assets.

The special committee has retained special legal counsel and is in the process of engaging a leading real estate investment banking group as financial advisor. To date, the special committee has not engaged in any substantive discussions or negotiations related to the terms of a transaction with this related party or any other party. In addition, there has not been any exchange of information or any entry into non-disclosure agreements with any party. There are no assurances that the consideration of any strategic alternative will result in a transaction. We do not intend to comment on or disclose developments regarding the process unless we deem further disclosure is appropriate or required.

Significant Accounting Policies and Use of Estimates

A summary of our significant accounting policies is set forth in Note 2 - Summary of Significant Accounting Policies to our consolidated financial statements included in this Quarterly Report on Form 10-Q. A full disclosure of our significant accounting polices is disclosed in our Annual Report on Form 10-K for the year ended December 31, 2015.

Portfolio

As of March 31, 2016 and December 31, 2015, our portfolio consisted of 76 and 77 loans (the "Loans") and 16 and 16 investments in CMBS, respectively. The Loans had a total carrying value, net of reserve, of $1,126.4 million and $1,124.2 million, and our CMBS investments had a fair value of $124.9 million and $130.8 million as of March 31, 2016 and December 31, 2015, respectively. For our loans, we currently estimate loss rates based on historical realized losses experienced in the industry and take into account current collateral and economic conditions affecting the probability or severity of losses when establishing the allowance for loan losses. We recorded a general allowance for loan losses as of March 31, 2016 and December 31, 2015 in the amount of $1.1 million and $0.9 million, respectively. There were no impaired or specifically reserved loans in the portfolio as of March 31, 2016 and December 31, 2015.

As of March 31, 2016 and December 31, 2015, our Loans had a weighted average coupon of 6.1% and 6.1%, and a weighted average life of 2.5 and 2.7 years, respectively. Our CMBS investments had a weighted average coupon of 4.8% and 4.7% and a remaining life of 2.8 and 3.2 years as of March 31, 2016 and December 31, 2015, respectively. The following

23

charts summarize our portfolio as a percentage of par value, including CMBS, by the collateral type, geographical region and coupon rate type as of March 31, 2016 and December 31, 2015:

24

25

An investments region classification is defined according to the below map based on the location of investments' secured property.

The following charts show the par value by maturity year for the investments in our portfolio as of March 31, 2016 and December 31, 2015.

26

The following table shows selected data from our commercial mortgage loans portfolio as of March 31, 2016 (in thousands):

Loan Type	Property Type	Par Value	Interest Rate (1)	Effective Yield	Loan to Value (2)
Senior 1	Retail	$7,460	1M LIBOR + 4.75%	5.4%	78.0%
Senior 2	Office	8,500	1M LIBOR + 4.65%	5.4%	70.8%
Senior 3	Mixed Use	11,000	1M LIBOR + 9.00%	10.5%	70.0%
Senior 4	Office	35,800	1M LIBOR + 5.25%	6.0%	75.0%
Senior 5	Office	11,750	1M LIBOR + 4.75%	5.4%	74.4%
Senior 6	Retail	14,600	1M LIBOR + 4.25%	4.9%	65.0%
Senior 7	Retail	11,636	1M LIBOR + 5.00%	5.7%	70.0%
Senior 8	Office	19,250	1M LIBOR + 4.55%	5.1%	70.0%
Senior 9	Multifamily	16,847	1M LIBOR + 4.75%	5.5%	75.0%
Senior 10	Multifamily	14,229	1M LIBOR + 4.50%	5.2%	76.0%
Senior 11	Office	12,000	1M LIBOR + 4.75%	5.3%	54.1%
Senior 12	Multifamily	21,215	1M LIBOR + 4.25%	4.8%	69.6%
Senior 13	Multifamily	8,668	1M LIBOR + 4.75%	5.5%	76.0%
Senior 14	Retail	9,850	1M LIBOR + 5.25%	5.9%	80.0%
Senior 15	Industrial	18,658	1M LIBOR + 4.25%	5.6%	68.0%
Senior 16	Hospitality	10,350	1M LIBOR + 5.50%	6.2%	69.9%
Senior 17	Office	30,317	1M LIBOR + 4.65%	5.4%	80.0%
Senior 18	Retail	4,725	1M LIBOR + 5.50%	6.3%	72.0%
Senior 19	Retail	19,010	1M LIBOR + 4.75%	5.6%	55.0%
Senior 20	Multifamily	39,200	1M LIBOR + 4.00%	4.6%	77.0%
Senior 21	Retail	7,500	1M LIBOR + 5.00%	5.8%	59.0%
Senior 22	Office	13,129	1M LIBOR + 5.00%	5.7%	75.0%
Senior 23	Hospitality	11,482	1M LIBOR + 5.75%	6.4%	60.0%
Senior 24	Hospitality	12,251	1M LIBOR + 5.30%	6.0%	73.5%
Senior 25	Mixed Use	24,573	1M LIBOR + 5.50%	6.1%	55.3%
Senior 26	Multifamily	17,560	1M LIBOR + 4.20%	4.8%	76.4%
Senior 27	Mixed Use	10,018	1M LIBOR + 5.10%	5.8%	75.0%
Senior 28	Multifamily	39,200	1M LIBOR + 4.25%	5.0%	77.0%

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Loan Type	Property Type	Par Value	Interest Rate (1)	Effective Yield	Loan to Value (2)
Senior 29	Retail	9,450	1M LIBOR + 4.90%	5.5%	69.2%
Senior 30	Industrial	33,655	1M LIBOR + 4.00%	4.5%	65.0%
Senior 31	Mixed Use	45,100	1M LIBOR + 5.50%	6.2%	72.6%
Senior 32	Multifamily	8,850	1M LIBOR + 4.70%	5.4%	68.8%
Senior 33	Office	24,500	1M LIBOR + 4.60%	5.3%	65.0%
Senior 34	Mixed Use	7,984	1M LIBOR + 4.75%	5.4%	78.3%
Senior 35	Hospitality	16,800	1M LIBOR + 4.90%	5.5%	74.0%
Senior 36	Office	35,000	1M LIBOR + 5.00%	5.5%	79.0%
Senior 37	Office	6,262	1M LIBOR + 4.90%	5.4%	80.0%
Senior 38	Retail	11,800	1M LIBOR + 4.75%	5.4%	79.4%
Senior 39	Retail	13,500	1M LIBOR + 5.00%	5.7%	78.0%
Senior 40	Retail	11,482	1M LIBOR + 4.50%	5.1%	74.8%
Senior 41	Multifamily	18,075	1M LIBOR + 4.50%	5.1%	75.0%
Senior 42	Mixed Use	31,250	1M LIBOR + 4.50%	5.1%	75.0%
Senior 43	Multifamily	24,394	1M LIBOR + 4.25%	5.0%	79.7%
Senior 44	Office	9,572	1M LIBOR + 5.50%	6.3%	75.0%
Senior 45	Multifamily	28,406	1M LIBOR + 3.85%	4.2%	76.8%
Senior 46	Multifamily	10,785	1M LIBOR + 3.95%	4.3%	77.5%
Senior 47	Multifamily	12,009	1M LIBOR + 3.95%	4.3%	78.2%
Senior 48	Multifamily	5,800	1M LIBOR + 4.05%	4.4%	80.0%
Senior 49	Office	28,000	1M LIBOR + 4.25%	4.8%	73.3%
Senior 50	Multifamily	14,037	1M LIBOR + 5.00%	5.7%	76.7%
Senior 51	Retail	26,500	1M LIBOR + 4.75%	5.2%	67.4%
Senior 52	Multifamily	10,680	1M LIBOR + 4.75%	5.3%	75.0%
Mezzanine 1	Mixed Use	7,000	1M LIBOR + 10.50%	11.1%	84.0%
Mezzanine 2	Office	5,000	11.00%	10.8%	63.6%
Mezzanine 3	Hospitality	3,000	11.00%	10.8%	81.8%
Mezzanine 4	Hospitality	11,000	1M LIBOR + 7.05%	7.5%	70.0%
Mezzanine 5	Office	22,777	1M LIBOR + 7.25%	7.3%	76.0%
Mezzanine 6	Office	7,000	12.00%	11.9%	78.3%
Mezzanine 7	Hospitality	12,000	1M LIBOR + 9.00%	9.2%	74.2%
Mezzanine 8	Retail	1,963	13.00%	12.9%	85.0%
Mezzanine 9	Office	5,100	3M LIBOR + 10.00%	10.6%	79.5%
Mezzanine 10	Hospitality	45,000	1M LIBOR + 10.00%	10.4%	75.0%
Mezzanine 11	Multifamily	5,000	9.00%	8.7%	73.9%
Mezzanine 12	Multifamily	3,480	9.50%	9.4%	84.5%
Mezzanine 13	Office	10,000	1M LIBOR + 8.00%	8.3%	80.0%
Mezzanine 14	Multifamily	4,000	12.00%	11.8%	74.5%
Mezzanine 15	Office	10,000	10.00%	10.9%	79.0%
Mezzanine 16	Office	10,000	1M LIBOR + 10.75%	15.5%	80.0%
Mezzanine 17	Hospitality	7,140	10.00%	11.5%	73.9%
Mezzanine 18	Hospitality	$3,900	10.00%	11.5%	73.9%
Mezzanine 19	Hospitality	$12,510	10.00%	11.5%	73.9%
Mezzanine 20	Hospitality	$8,050	10.00%	11.5%	73.9%
Mezzanine 21	Office	$9,000	10.50%	10.4%	85.0%
Mezzanine 22	Hospitality	$6,253	5.46%	13.5%	76.7%
Mezzanine 23	Hospitality	$12,350	1M LIBOR + 10.00%	10.4%	74.0%
Subordinate 1	Retail	$10,000	11.00%	11.0%	50.1%
		$1,136,193		6.4%	73.1%

________________________

⁽¹⁾ Our floating rate loan agreements contain the contractual obligation for the borrower to maintain an interest rate cap to protect against rising interest rates. In a simple interest rate cap, the borrower pays a premium for a notional principal amount based on a capped interest rate (the "cap rate"). When the floating rate exceeds the cap rate, the borrower receives a payment from the cap counterparty

28

equal to the difference between the floating rate and the cap rate on the same notional principal amount for a specified period of time. When interest rates rise, the value of an interest rate cap will increase, thereby reducing the borrower's exposure to rising interest rates.

⁽²⁾ Loan to value percentage is from metrics at origination.

Results of Operations

Comparison of the Three Months Ended March 31,2016 to the Three Months Ended March 31,2015

We conduct our business through the following segments:

• The real estate debt business focuses on originating, acquiring and asset managing commercial real estate debt investments, including first mortgage loans, subordinate mortgages, mezzanine loans and participations in such loans.

• The real estate securities business focuses on investing in and asset managing commercial real estate securities primarily consisting of CMBS and may include unsecured REIT debt, CDO notes and other securities.

Net Interest Income

Net interest income is generated on our interest-earning assets less related interest-bearing liabilities and is recorded as part of our real estate debt and real estate securities segments.

The following table presents the average balance of interest-earning assets less related interest-bearing liabilities, associated interest income and expense and corresponding yield earned and incurred for the three months endedMarch 31, 2016 and 2015 (dollars in thousands):

	Three Months Ended March 31,
	2016							2015
	Average Carrying Value(1)			Interest Income/Expense(2)		WA Yield/Financing Cost(3)(4)		Average Carrying Value(1)			Interest Income/Expense(2)		WA Yield/Financing Cost(3)(4)
Interest-earning assets:
Real estate debt	$	1,132,923		$	18,667	6.6	%	$	508,613		$	9,196	7.2	%
Real estate securities	132,010			1,615		4.9	%	54,495			409		3.0	%
Total	1,264,933			20,282		6.4	%	563,108			9,605		6.8	%
Interest-bearing liabilities:
Repurchase Agreements - Loans	231,185			1,983		3.4	%	166,238			1,804		4.3	%
Repurchase Agreements - Securities	123,513			677		2.2	%	32,002			129		1.6	%
Collateralized loan obligations	288,106			2,108		2.9	%	—			—		—	%
Total	642,804			4,768		3.0	%	198,240			1,933		3.9	%
Net interest income/spread				15,514		3.4	%				$	7,672	2.9	%
Average leverage %(5)	50.8		%					35.2		%
Weighted average levered yield(6)						8.1	%						7.8	%

________________________

⁽¹⁾ Based on amortized cost for real estate debt and real estate securities and principal amount for repurchase agreements. Amounts are calculated based on daily averages for three months ended March 31, 2016 and December 31, 2015, respectively.

⁽²⁾ Includes the effect of amortization of premium or accretion of discount and deferred fees.

⁽³⁾ Calculated as interest income or expense divided by average carrying value.

⁽⁴⁾ Annualized.

⁽⁵⁾ Calculated by dividing total average interest-bearing liabilities by total average interest-earning assets.

⁽⁶⁾ Calculated by taking the sum of (i) the net interest spread multiplied by the average leverage and (ii) the interest-earning assets.

Interest Income

The primary driver for increased interest income during the three months endedMarch 31, 2016 compared to the same period in 2015 was the increase in the size of our portfolio resulting from the investment of the capital raised in the Offering into real estate debt. As of March 31, 2016, our Loans had a total carrying value of $1,127.4 million and our CMBS investments had a fair value of $124.9 million, while as of March 31, 2015, the Loans had a total carrying value of $559.1 million and our CMBS investments had a fair value of $58.4 million. This increase was partially offset by a decrease in yield on our investments by 40 basis points quarter over quarter, primarily due to a shift in the composition of the portfolio predominately to lower yielding senior loans over the course of 2015.

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Interest Expense

Interest expense for the three months endedMarch 31, 2016 was $2.9 million higher than for the three months endedMarch 31, 2015, primarily due to an increase in average borrowings outstanding of more than $444 million period over period. The increase was partially offset by a 90 basis points decrease in rates on interest-bearing liabilities primarily due to borrowing more on our lower interest repurchase agreements for senior loans compared to higher cost borrowings.

Expenses from Operations

Expenses from operations for the three months endedMarch 31, 2016 and 2015 were made up of the following (in thousands):

	Three Months Ended March 31,
	2016		2015
Asset management and subordinated performance fee	$	3,010	$	362
Acquisition fees	157		1,032
Professional fees	1,261		1,379
Administrative services expenses	816		—
Other expenses	694		123
Loan loss provision	165		144
Total expenses from operations	$	6,103	$	3,040

For the three months ended March 31, 2016, expenses from operations were primarily related to asset management and subordinated performance fees. During the three months ended March 31, 2016 and March 31, 2015, we incurred $3.0 million and $0.4 million of asset management and subordinated performance fees, respectively, an increase of $2.6 million. Additionally, we have incurred $0.8 million of administrative service expenses for three months ended March 31, 2016, we did not have these expenses for the three months ended March 31, 2015. For the three months ended March 31, 2015, our expenses from operations were primarily related to acquisition fees and professional fees of $2.4 million.

Liquidity and Capital Resources

Our principal demands for cash will be acquisition costs, including the purchase price of any investments we originate or acquire, the payment of our operating and administrative expenses, continuing debt service obligations and distributions to our stockholders. Prior to January 2016, we generally funded our investments from the net proceeds of the Offering. We can acquire our assets with cash or debt, but we also may acquire assets free and clear of indebtedness by paying the entire purchase price for the asset in cash or in OP units. We currently believe that we have sufficient liquidity and capital resources available for the acquisition of additional investments, repayments on borrowings and the payment of cash dividends, although given the termination of our Offering we expect our new investments to decrease significantly in 2016 unless we are able to raise additional equity capital.

Loan Repo Facilities

We entered into the JPM Repo Facility with JPMorgan Chase Bank, National Association (the "JPM Facility"). The JPM Repo Facility provides up to $150.0 million in advances, subject to adjustment, which we expect to use to finance the acquisition or origination of eligible loans, including first mortgage loans, junior mortgage loans, mezzanine loans and participation interests therein. Advances under the JPM Repo Facility accrue interest at per annum rates equal to the sum of (i) the applicable LIBOR index rate plus (ii) a margin of between 2.25% to 4.50%, depending on the attributes of the purchased assets. The initial maturity date of the JPM Repo Facility is June 18, 2016, with a one-year extension at our option, which may be exercised upon the satisfaction of certain conditions. As of March 31, 2016 and December 31, 2015, there was $121.7 million and $84.3 million of principal outstanding on the JPM Repo Facility, respectively.

We entered into the Barclays Repo Facility with Barclays Bank PLC ("Barclays Repo Facility"). The Barclays Repo Facility provides up to $150.0 million in advances, subject to adjustment, which we expect to use to finance the acquisition or origination of eligible loans, including first mortgage loans and senior notes and participation interests therein. We entered into an amendment of the Barclays Repo Facility, dated as of May 12, 2016 (the “Barclays Amendment”), after giving effect to the Barclays Amendment, advances under the Barclays Repo Facility accrue interest at per annum rates equal to the sum of (i) the applicable LIBOR index rate plus (ii) a margin of between 2.50% to 3.00%, depending on the attributes of the purchased assets. Pursuant to the Barclays Amendment, the maturity date of the Barclays Repo Facility was extended to September 6, 2016. There are two six-month extensions remaining under the Barclays Repo Facility, which may be granted by lender in its sole

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discretion upon the satisfaction of certain conditions. As of March 31, 2016 and December 31, 2015, we had $121.9 million and $121.9 million outstanding under the Barclays Repo Facility, respectively.

The JPM Repo Facility and the Barclays Repo Facility generally provide that in the event of a decrease in the value of our collateral, the lenders can demand additional collateral. Should the value of our collateral decrease, whether as a result of deteriorating credit quality, an increase in credit market spreads or otherwise, resulting margin calls may cause an adverse change in our liquidity position.

CMBS Master Repurchase Agreements ("MRAs")

We entered into various MRAs that allow us to sell real estate securities while providing a fixed repurchase price for the same real estate securities in the future. The repurchase contracts on each security under an MRA generally mature in 30 to 90 days and terms are adjusted for current market rates as necessary. As of March 31, 2016 and December 31, 2015, we entered into six MRAs, of which three were in use, described below (in thousands):

	Amount						Weighted Average
Counterparty	Outstanding		Accrued Interest		Collateral Pledged		Interest Rate		Days to Maturity
As of March 31, 2016
J.P. Morgan Securities LLC (*)	$	90,897	$	159	$	137,487	2.25	%	1
Citigroup Global Markets, Inc.	26,177		81		34,559		2.32	%	44
Wells Fargo Securities, LLC	3,375		3		4,500		1.79	%	13
Total/Weighted Average	$	120,449	$	243	$	176,546	2.25	%	11
As of December 31, 2015
J.P. Morgan Securities LLC (*)	$	86,898	$	108	$	130,618	2.03	%	8
Citigroup Global Markets, Inc.	26,619		71		35,528		2.00	%	45
Wells Fargo Securities, LLC	3,694		3		4,925		1.67	%	13
Total/Weighted Average	$	117,211	$	182	$	171,071	2.01	%	17

^(*) Collateral includes $52,962 and $56,044 of Tranche C of RFT issued CLO to JPM. The investment in Tranche C of the CLO eliminates on the consolidated balance sheets as of March 31, 2016 and December 31, 2015, respectively.

We expect to use additional debt financing as a source of capital. Under our charter, the maximum amount of our total indebtedness shall not exceed 300% of our total ‘‘net assets’’ (as defined by the NASAA REIT Guidelines) as of the date of any borrowing, which is generally expected to be 75% of the cost of our investments; however, we may exceed that limit if approved by a majority of our independent directors and disclosed to stockholders in our next quarterly report following such borrowing along with justification for exceeding such limit. This charter limitation, however, does not apply to individual real estate assets or investments. At the date of acquisition of each asset, we anticipate that the cost of investment for such asset will be substantially similar to its fair market value, which will enable us to satisfy our requirements under the North American Securities Administrators ("NASAA") Statement of Policy regarding REITs (the "REIT Guidelines"). However, subsequent events, including changes in the fair market value of our assets, could result in our exceeding these limits. We anticipate that adequate cash will be generated from operations to fund our operating and administrative expenses, continuing debt service obligations and the payment of distributions.

In addition to our current mix of financing sources, we may also access additional forms of financings, including credit facilities, securitizations and public and private, secured and unsecured debt issuances by us or our subsidiaries.

Recently, the Commercial Mortgage Securitization market has experienced a period of widening credit spreads and limited liquidity.  This trend could negatively impact our ability to execute an additional CLO to refinance our existing indebtedness. We continue to monitor the credit markets to determine the best time to create another CLO financing vehicle. Additionally, this period of widening credit spreads and limited liquidity has affected the fair market value of the CMBS securities we hold in position.

Distributions

In May 13, 2013, our board of directors authorized, and we declared, a distribution payable on a monthly basis to stockholders of record on each day at a rate equal to $0.00565068493 per day, which is equivalent to $2.0625 per annum, per share of common stock. In March 2016, our board of directors ratified the existing distribution amount equivalent to $2.0625 per annum, and, for calendar year 2016, affirmed a change to the daily distribution amount to$0.0056352459 per day per share of common stock, effective January 1, 2016, to accurately reflect that 2016 is a leap year. The distribution will be payable by

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the fifth day following the end of each month to stockholders of record at the close of business each day during the prior month.

The below table shows the distributions paid on shares outstanding during the three months endedMarch 31, 2016 and three months ended March 31, 2015 (in thousands):

Three Months Ended March 31, 2016 Payment Date	Amount Paid in Cash		Amount Issued under DRIP
January 4, 2016	$	3,225	$	2,324
February 2, 2016	3,337		2,159
March 2, 2016	3,057		2,099
Total	$	9,619	$	6,582

Three Months Ended March 31, 2015 Payment Date	Amount Paid in Cash		Amount Issued under DRIP
January 2, 2015	$	1,512	$	1,109
February 2, 2015	1,618		1,182
March 2, 2015	1,567		1,154
Total	$	4,697	$	3,445

The following table shows the sources for the payment of distributions to common stockholders for the periods presented(in thousands):

	Three Months Ended March 31,
	2016				2015
Distributions:
Cash distributions paid	$	9,619			$	4,697
Distributions reinvested	6,582				3,445
Total distributions	$	16,201			$	8,142
Source of distribution coverage:
Cash flows provided by operations	$	9,619	59.4	%	$	4,697	57.7	%
Proceeds from issuance of common stock	—		—	%	—		—	%
Common stock issued under DRIP	6,582		40.6	%	3,445		42.3	%
Total sources of distributions	$	16,201	100.0	%	$	8,142	100.0	%
Cash flows provided by operations (GAAP)	$	10,088			$	5,258
Net income (GAAP)	$	9,420			$	4,632

The following table compares cumulative distributions paid to cumulative net income (in accordance with GAAP) for the period from November 15, 2012 (date of inception) through March 31, 2016 (in thousands):

	For the Period from November 15, 2012 (date of inception) to March 31, 2016
Distributions paid:
Common stockholders in cash	$	44,446
Common stockholders pursuant to DRIP / offering proceeds	31,959
Total distributions paid	$	76,405
Reconciliation of net income:
Net interest income	$	76,661
Gain on sale	112
Acquisition fees	(12,459		)
Other operating expenses	(24,460		)
Net income	$	39,854
Cash flows provided by operations	$	38,982

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Cash Flows

Cash Flows for the Three Months EndedMarch 31, 2016

Net cash provided by operating activities for the three months endedMarch 31, 2016 was $10.1 million. Cash inflows were primarily driven by net income of $9.4 million.

Net cash provided by investing activities for the three months endedMarch 31, 2016 was $0.5 million. Cash outflows were driven by additional funding of $9.7 million on existing loans, partially offset by principal repayments of $10.2 million.

Net cash provided by financing activities for the three months endedMarch 31, 2016 was $23.8 million. Cash inflows were primarily driven by $37.3 million from net borrowings on the JPM Repo Facility and $3.2 million from net borrowings on our CMBS MRAs which were partially offset by the payment of $9.6 million in cash distributions paid to stockholders.

Cash Flows for the Three Months EndedMarch 31, 2015

Net cash provided by operating activities for the three months ended March 31, 2015 was $5.3 million. Cash inflows were primarily driven by an increase in net interest income to $7.7 million, but were partially offset by cash outflows mainly for acquisition fees of $1.0 million.

Net cash used in investing activities for the three months ended March 31, 2015 was $110.1 million. Cash outflows were primarily driven by originations and acquisitions with $116.4 million and $8.0 million representing our investment in 10 new loans and one new CMBS position, respectively.

Net cash provided by financing activities for the three months ended March 31, 2015 was $121.6 million. Cash inflows for the period of $92.8 million from the issuance of common stock, $32.1 million from net borrowings on the Loan Repo Facilities and $11.5 million from net borrowings on our CMBS MRAs which were partially offset by the payment of $9.2 million of offering costs.

Related Party Arrangements

Realty Finance Advisors, LLC

Subject to certain restrictions and limitations, our Advisor is responsible for managing our affairs on a day-to-day basis and for identifying, originating, acquiring and asset managing investments on our behalf. For such services, to the extent permitted by law and regulations, our Advisor receives fees and reimbursements from us. Below is a description of the fees and reimbursements incurred to our Advisor.

Organization and Offering Expenses

Our Advisor is entitled to receive reimbursement for organization and offering expenses, which may include reimbursements to our Advisor for other organization and offering expenses it incurs for due diligence fees included in detailed and itemized invoices. We are obligated to reimburse our Advisor for organization and offering costs to the extent the organization and offering expenses do not exceed 2.0% of gross proceeds from the Offering. We shall not reimburse our Advisor for any organization and offering costs that our independent directors determine are not fair and commercially reasonable to us.

Operating Costs

We will reimburse our Advisor’s costs of providing administrative services. We will not reimburse the Advisor for personnel costs in connection with services for which the Advisor receives acquisition fees or disposition fees. The Advisor must pay any expenses in which our operating expenses as defined by North American Securities Administrators Association at the end of the four preceding fiscal quarters exceeds the greater of (i) 2.0% of average invested assets or (ii) 25.0% of net income other than any additions to reserves for depreciation, bad debt or other similar non-cash reserves and excluding any gain from the sale of assets for that period, unless a majority of our independent directors determine the excess expenses were justified based on unusual and nonrecurring factors.

Asset Management Fee

Our Advisor, or its affiliates, receives an annual asset management fee equal to 0.75% of the cost of our assets. Commencing on the NAV pricing date, the asset management fee is based on the lower of 0.75% of the cost of our assets and 0.75% of the fair value of our assets (fair value will consist of the market value of each portfolio investment as determined in accordance with our valuation guidelines). This fee will be paid monthly in arrears, based on assets held by us during the measurement period adjusted for the appropriate closing dates for individual investments. Prior to June 17, 2015, the amount of the asset management fee was reduced to the extent that FFO, as adjusted, during the six month period ending on the last day of the calendar quarter immediately preceding the date such asset management fee was payable, was less than distributions declared during the same period. For purposes of this determination, FFO, as adjusted, is FFO adjusted to (i) include acquisition fees and acquisition expenses; (ii) include non-cash restricted stock grant amortization, if any; and (iii) include

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impairments and loan loss reserves on investments, if any (including commercial mortgage loans and other debt investments). FFO, as adjusted, is not the same as FFO.

Acquisition Fee

Our Advisor, or its affiliates, receives an acquisition fee equal to 1.0% of the contract purchase price paid for our commercial real estate debt or other commercial real estate investments and 1.0% of the anticipated net equity funded by the us to acquire real estate securities.

Acquisition Expense

Our Advisor, or its affiliates, may receive reimbursements for acquisition expenses incurred including personnel costs related to selecting, evaluating, originating and acquiring investments on our behalf and we may incur third party acquisition expenses. We reimburse the Advisor, or its affiliates, up to 0.5% of the principal amount funded by us to originate or acquire commercial mortgage loans and up to 0.5% of the anticipated net equity funded by us to acquire real estate securities investments. In no event will the total of all acquisition fees and acquisition expenses exceed 4.5% of the principal amount funded with respect to our total portfolio including subsequent fundings to investments in our portfolio.

Asset Disposition Fee

For substantial assistance in connection with the sale of investments, as determined by our board of directors, we will pay our Advisor, or its affiliates, a disposition fee of 1.0% of the contract sales price of each commercial mortgage loan or other investment sold, including real estate securities or collateralized debt obligations issued by our subsidiary as part of a securitization transaction. We will not be obligated to pay a disposition fee upon the maturity, prepayment, workout, modification or extension of commercial real estate debt unless there is a corresponding fee paid by the borrower, in which case the disposition fee will be the lesser of (i) 1.0% of the principal amount of the debt prior to such transaction; or (ii) the amount of the fee paid by the borrower in connection with such transaction. If we take ownership of a property as a result of a workout or foreclosure of a loan, we will pay a disposition fee upon the sale of such property.

Annual Subordinated Performance Fee

We pay the Advisor an annual subordinated performance fee calculated on the basis of our total return to stockholders, payable monthly in arrears, such that for any year in which our total return on stockholders’ capital exceeds 6.0% per annum, the Advisor will be entitled to 15.0% of the excess total return; provided that in no event will the annual subordinated performance fee payable to the Advisor exceed 10.0% of the aggregate total return for such year. This fee will be payable only upon the sale of assets, distributions or other events which result in our return on stockholders’ capital exceeding 6.0% per annum.

Convertible Stock

We have issued 1,000 convertible shares to the Advisor, which will automatically convert to shares of our common stock upon the occurrence of the first to occur of the Triggering Events. In general, but with certain exceptions as outlined in the articles supplementary, each convertible share will convert into a number of common shares equal to 1/1000 of the quotient of (a) the conversion product (the product of 0.15 times the amount, if any, by which (i) the sum of the enterprise value as of the date of the Triggering Event plus total distributions paid to the our stockholders through the date of the Triggering Event exceeds (ii) the sum of our stockholders’ invested capital plus a 6.0% return as of the date of the Triggering Event) divided by (b) the quotient of the enterprise value divided by the number of shares of our common stock outstanding (on an as-converted basis) on the date of the Triggering Event. The conversion product will be reduced by the amounts payable pursuant to the annual subordinated performance fee as realized appreciation in our assets during the time that the Advisor or one of its affiliates acts as our advisor.

Realty Capital Securities, LLC and its Affiliates

Selling Commissions and Former Dealer Manager Fees

Prior to the termination of the Former Dealer Manager, we paid our Former Dealer Manager selling commissions of up to 7.0% of the per share purchase price of shares in our Offering, all of which are reallowed to soliciting dealers. In addition, we paid our Former Dealer Manager a fee of 3.0% of the per share purchase price of shares in our Offering, a portion of which may be reallowed to soliciting dealers. Alternatively, a soliciting dealer may elect to receive a selling commission equal to 7.5% of the gross proceeds from the sale of shares made by such soliciting dealer, with 2.5% thereof paid at the time of such sale and 1.0% thereof paid on each anniversary of such sale up to and including the fifth anniversary of the closing of such sale.

No selling commissions or Former Dealer Manager fees are paid for sales under our DRIP.

Additional Fees Incurred to the Sponsor and its Affiliates

The predecessor to AR Global is a party to a services agreement with RCS Advisory Services, LLC, a subsidiary of the parent company of the Former Dealer Manager (“RCS Advisory”), pursuant to which RCS Advisory and its affiliates

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provided us and certain other companies sponsored by AR Global with services (including, without limitation, transaction management, compliance, due diligence, event coordination and marketing services, financial research, strategic advisory services, investment banking services, critical thinking and analytical resources, among others) on a time and expenses incurred basis or at a flat rate based on services performed. The predecessor to AR Global instructed RCS Advisory to stop providing such services in November 2015 and no services have since been provided by RCS Advisory.

We were also party to a transfer agency agreement with American National Stock Transfer, LLC, a subsidiary of the parent company of the Former Dealer Manager (“ANST”), pursuant to which ANST provided us with transfer agency services (including broker and stockholder servicing, transaction processing, year-end IRS reporting and other services), and supervisory services overseeing the transfer agency services performed by a third-party transfer agent. AR Global received written notice from ANST on February 10, 2016 that it would wind down operations by the end of the month and would withdraw as the transfer agent effective February 29, 2016. On February 26, 2016, we entered into a definitive agreement with DST Systems, Inc., a third-party and its previous provider of sub-transfer agency services, to provide us directly with transfer agency services (including broker and stockholder servicing, transaction processing, yearend IRS reporting and other services). See Note 9 - Related Party Transactions and Arrangements to our consolidated financial statements included in this Annual Report on Form 10-K and Item 13. Certain Relationships and Related Transactions, and Director Independence for a discussion of the various related party transactions, agreements and fees. 

Total Costs Incurred Due to Related Party Arrangements

The table below shows the costs incurred due to related party arrangements during the three months endedMarch 31, 2016 and 2015 and the associated payable as of March 31, 2016 and December 31, 2015 (in thousands). See Note 9 - Related Party Transactions and Arrangements for further detail.

	Three Months Ended March 31,				Payable as of
	2016		2015		March 31, 2016		December 31, 2015
Total commissions and fees incurred from the Former Dealer Manager in connection with the offering	$	—	$	9,247	$	—	$	—
Total compensation and reimbursement for services provided by the Advisor and affiliates in connection with the offering	—		1,962		472		480
Acquisition fees and expenses	157		1,781		—		55
Administrative services expenses	816		—		187
Advisory and investment banking fee	6		14		—		—
Subordinated performance fee and Management fee	3,010		362		3,683		3,792
Other related party expenses	26		21		61		—
Total	$	4,015	$	13,387	$	4,403	$	4,327

The payables as of March 31, 2016 and December 31, 2015 in the table above are included in Due to affiliates on our consolidated balance sheets.

Off Balance Sheet Arrangements

We have no off balance sheet arrangements as of March 31, 2016 and through the date of the filing of this Form 10-Q.

Non-GAAP Financial Measures

Funds from Operations and Modified Funds from Operations

Due to certain unique operating characteristics of real estate companies, as discussed below, the National Association of Real Estate Investment Trusts ("NAREIT") and the Investment Program Association ("IPA") industry trade groups, have each promulgated measures respectively known as funds from operations ("FFO") and modified funds from operations ("MFFO"), which we believe to be appropriate supplemental measures to reflect the operating performance of a REIT. The use of FFO and MFFO is recommended by the REIT industry as supplemental performance measures. FFO and MFFO are not equivalents to our net income or loss as determined under generally accepted accounting principles ("GAAP").

We define FFO, a non-GAAP measure, consistent with the standards established by the White Paper on FFO approved by the Board of Governors of NAREIT, as revised in February 2004 (the "White Paper"). The White Paper defines FFO as net income or loss computed in accordance with GAAP, excluding gains or losses from sales of depreciable property, property and

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asset impairment write-downs, depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures. Adjustments for unconsolidated partnerships and joint ventures are calculated to reflect FFO. Our business plan is to operate as a mortgage REIT with our portfolio consisting of commercial mortgage loan investments and investments in real estate securities. We will typically have no FFO adjustments to our net income or loss computed in accordance with GAAP as a result of operating as a mortgage REIT. Although we have the ability to acquire real property, we have not acquired any at this time and as such have not had any FFO adjustments to our net income or loss computed in accordance with GAAP.

Publicly registered, non-listed REITs typically operate differently from exchange traded REITs because they generally have a limited life followed by a liquidity event or other targeted exit strategy. Non-listed REITs typically have a significant amount of acquisition activity and are substantially more dynamic during their initial years of investment and operation as compared to later years when the proceeds from their continuous public offering have been fully invested and when we are seeking to implement a liquidity event or other exit strategy. However, it is likely that we will make investments past the acquisition stage, albeit at a substantially lower level.

The origination and acquisition of debt investments is a key operating feature of our business plan that results in the generation of income and cash flows in order to make distributions to stockholders. Acquisition fees paid to our Advisor and acquisition expenses reimbursed to our Advisor in connection with the origination and acquisition of debt investments are evaluated in accordance with GAAP to determine if they should be expensed in the period incurred or capitalized and amortized over the life of the investment. Acquisition fees and acquisition expenses that are deemed to be expensed in the period incurred are included in the computation of net income or loss from operations. The amortization of acquisition fees and acquisition expenses that are able to be capitalized are included in the computation of net income or loss from operations. All such acquisition fees and acquisition expenses are paid in cash when incurred that would otherwise be available to distribute to our stockholders. When proceeds from the Offering have not been sufficient to fund the payment of acquisition fees and the reimbursement of acquisition expenses to our Advisor, such fees and expenses have been paid from other sources, including financings, operating cash flow, net proceeds from the sale of investments or from other cash flows. We believe that acquisition fees and acquisition expenses incurred by us negatively impact our operating performance during the period in which such investments are originated or acquired by reducing cash flows and therefore the potential distributions to stockholders. However, we only add back acquisition fees and acquisition expenses reflected in net income or loss from operations in the current period.

We define MFFO, a non-GAAP measure, consistent with the IPA's Guideline 2010 - 01, Supplemental Performance Measure for Publicly Registered, Non-Listed REITs: Modified Funds from Operations (the "Practice Guideline") issued by the IPA in November 2010. We define MFFO as FFO further adjusted for the following items, as applicable: acquisition fees; accretion of discounts and amortization of premiums and other loan expenses on debt investments; fair value adjustments on real estate related investments such as commercial real estate securities or derivative investments included in net income; impairments of real estate related investments, gains or losses included in net income from the extinguishment or sale of debt, hedges, foreign exchange, derivatives or securities holdings where trading of such holdings is not a fundamental attribute of the business plan, unrealized gains or losses from fair value adjustments on real estate securities, including commercial mortgage backed securities and other securities, interest rate swaps and other derivatives not deemed to be hedges and foreign exchanges holdings; unrealized gains or losses resulting from consolidation from, or deconsolidation to, equity accounting, and after adjustments for consolidated and unconsolidated partnerships and joint ventures, with such adjustments calculated to reflect MFFO on the same basis. The accretion of discounts and amortization of premiums and other loan expenses on debt investments, gains and losses on hedges, foreign exchange, derivatives or securities holdings, unrealized gains and losses resulting from consolidations, as well as other listed cash flow adjustments are adjustments made to net income in calculating the cash flows provided by operating activities and, in some cases, reflect gains or losses which are unrealized and may not ultimately be realized. While we will be responsible for managing interest rate, hedge and foreign exchange risk, we expect to retain an outside consultant to review all our hedging agreements. Inasmuch as interest rate hedges are not a fundamental part of our operations, we believe it is appropriate to exclude such gains and losses in calculating MFFO, as such gains and losses are not reflective of our core operations.

Our MFFO calculation excludes impairments of real estate related investments, including loans. We assess the credit quality of our investments and adequacy of loan loss reserves on a quarterly basis, or more frequently as necessary. For loans classified as held-for-investment, we establish and maintain a general allowance for loan losses inherent in our portfolio at the reporting date and, where appropriate, a specific allowance for loan losses for loans we have determined to be impaired at the reporting date. An individual loan is considered impaired when it is deemed probable that we will not be able to collect all amounts due according to the contractual terms of the loan. Real estate related securities are evaluated for other-than-temporary impairment when the fair value of a security falls below its net amortized cost. Significant judgment is required in this analysis. We consider the estimated net recoverable value of the loan or security as well as other factors, including but not limited to the fair value of any collateral, the amount and the status of any senior debt, the prospects for the borrower and the competitive situation of the region where the borrower does business. Fair value is typically estimated based upon discounting the expected future cash flows of the underlying collateral taking into consideration the discount rate, capitalization rate, occupancy,

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creditworthiness of major tenants and many other factors. This requires significant judgment and because it is based upon projections of future economic events, which are inherently subjective, the amounts ultimately realized may differ materially from the carrying value as of the balance sheet date. If upon completion of the assessment, the estimated fair value of the underlying collateral is less than the net carrying value of the loan, a specific allowance for loan losses is recorded. In the case of real estate securities, all or a portion of a deemed impairment may be recorded. Due to our limited life, any allowance for loan losses or impairment of real estate securities recorded may be difficult to recover.

MFFO is a metric used by management to evaluate our performance against other non-listed REITs which have limited lives with short and defined acquisition periods and targeted exit strategies shortly thereafter and is not intended to be used as a liquidity measure. Although management uses the MFFO metric to evaluate future operating performance, this metric excludes certain key operating items and other adjustments that may affect our overall operating performance. MFFO is not equivalent to net income or loss as determined under GAAP. We believe that our use of MFFO and the adjustments used to calculate it allow us to present our performance in a manner that reflects certain characteristics that are unique to non-listed REITs, such as their limited life, limited and defined acquisition period and targeted exit strategy, and hence that the use of such measures is useful to investors.

We believe that FFO provides useful context for understanding MFFO, and we believe that MFFO is a useful non-GAAP measure for non-listed REITs. It is helpful to management and stockholders in assessing our future operating performance once our organization and offering and acquisition and development stages are complete, because it eliminates from net income non-cash fair value adjustments on our real estate securities and acquisition fees and acquisition expenses that are incurred as part of our investment activities. However, MFFO may not be a useful measure of our operating performance or as a comparable measure to other typical non-listed REITs if we do not continue to operate in a similar manner to other non-listed REITs, including if we were to extend our acquisition and development stage or if we determined not to pursue an exit strategy.

However, MFFO does have certain limitations. For instance, the effect of any amortization or accretion on investments originated or acquired at a premium or discount, respectively, is not reported in MFFO. In addition, realized gains or losses from acquisitions and dispositions and other adjustments listed above are not reported in MFFO, even though such realized gains or losses and other adjustments could affect our operating performance and cash available for distribution. Stockholders should note that any cash gains generated from the sale of investments would generally be used to fund new investments. Any mark-to-market or fair value adjustments may be based on many factors, including current operational or individual property issues or general market or overall industry conditions.

Neither FFO nor MFFO is equivalent to net income or loss or cash flow provided by operating activities determined in accordance with GAAP and should not be construed to be more relevant or accurate than the GAAP methodology in evaluating our operating performance. Neither FFO nor MFFO is necessarily indicative of cash flow available to fund our cash needs including our ability to make distributions to our stockholders. FFO and MFFO do not represent amounts available for management’s discretionary use because of needed capital replacement or expansion, debt service obligations or other commitments or uncertainties. Furthermore, neither FFO nor MFFO should be considered as an alternative to net income or loss as an indicator of our operating performance.

Neither the SEC, NAREIT nor any other regulatory body has passed judgment on the acceptability of the adjustments that we use to calculate FFO or MFFO. In the future, the SEC, NAREIT or another regulatory body may decide to standardize the allowable adjustments across the non-listed REIT industry and we would have to adjust our calculation and characterization of FFO or MFFO.

The table below reflects the items deducted or added to net income or loss in our calculation of FFO and MFFO for the three months endedMarch 31, 2016 and 2015 (in thousands):

	Three Months Ended March 31,
	2016			2015
Funds From Operations:
Net income	$	9,420		$	4,632
Funds from operations	$	9,420		$	4,632
Modified Funds From Operations:
Funds from operations	$	9,420		$	4,632
Amortization of premiums, discounts and fees on investments, net	(575		)	(334		)
Acquisition fees and acquisition expenses	157			1,032
Loan loss provision	165			144
Modified funds from operations	$	9,167		$	5,474

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Item 3. Quantitative and Qualitative Disclosures about Market Risk.

Our market risk arises primarily from interest rate risk relating to interest rate fluctuations. Many factors, including governmental monetary and tax policies, domestic and international economic and political considerations and other factors that are beyond our control contribute to interest rate risk. To meet our short and long-term liquidity requirements, we may borrow funds at fixed and variable rates. Our interest rate risk management objectives are to limit the impact of interest rate changes in earnings and cash flows and to lower our overall borrowing costs. To achieve these objectives, from time to time, we may enter into interest rate hedge contracts such as swaps, collars and treasury lock agreements in order to mitigate our interest rate risk with respect to various debt instruments. While hedging activities may insulate us against adverse changes in interest rates, they may also limit our ability to participate in benefits of lower interest rates with respect to our portfolio of investments with fixed interest rates. During the periods covered by this report, we did not engage in interest rate hedging activities. We do not hold or issue these derivative contracts for trading or speculative purposes. We do not have any foreign denominated investments, and thus, we are not exposed to foreign currency fluctuations.

As of March 31, 2016 and December 31, 2015, our portfolio included 76 and 77 variable rate investments, respectively, based on LIBOR for various terms. Borrowings under our repurchase agreements are also based on LIBOR. The following table quantifies the potential changes in interest income net of interest expense should interest rates increase by 50 or 100 basis points or decrease by 25 basis points, assuming that our current balance sheet was to remain constant and no actions were taken to alter our existing interest rate sensitivity:

	Estimated Percentage Change in Interest Income Net of Interest Expense
Change in Interest Rates	March 31, 2016		December 31, 2015
(-) 25 Basis Points	(2.20	)%	(0.53	)%
Base Interest Rate	—	%	—	%
(+) 50 Basis Points	4.41	%	4.52	%
(+) 100 Basis Points	8.81	%	9.17	%

Item 4. Controls and Procedures.

Disclosure Controls and Procedures

In accordance with Rules 13a-15(b) and 15d-15(b) of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), management, with the participation of our Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of our disclosure controls and procedures (as defined in Rule 13a-15(e) and Rule 15d-15(e) of the Exchange Act) as of the end of the period covered by this Quarterly Report on Form 10-Q. Based on such evaluation, our Chief Executive Officer and Chief Financial Officer have concluded, as of the end of such period, that our disclosure controls and procedures are effective in recording, processing, summarizing and reporting, on a timely basis, information required to be disclosed by us in our reports that we file or submit under the Exchange Act.

Changes in Internal Controls Over Financial Reporting

During the three months ended March 31, 2016, there were no changes in our internal controls over financial reporting (as defined in Rule 13a-15(f) and 15(d)-15(f) of the Exchange Act) that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II

Item 1. Legal Proceedings.

Neither we nor any of our subsidiaries are a party to any material, pending legal proceedings.

Item 1A. Risk Factors.

Our potential risks and uncertainties are presented in the section entitled "Risk Factors" contained in the Annual Report on Form 10-K for the year ended December 31, 2015. There have been no material changes from these risk factors.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

We did not sell any equity securities that were not registered under the Securities Act during the three months endedMarch 31, 2016.

Our Board unanimously approved an amended and restated share repurchase program (the “SRP”), which became effective on February 28, 2016. The SRP enables stockholders to sell their shares to us. Subject to certain conditions, stockholders that purchased shares of our common stock or received their shares from us (directly or indirectly) through one or more non-cash transactions and have held their shares for a period of at least one year may request that we repurchase their shares of common stock so long as the repurchase otherwise complies with the provisions of Maryland law. Repurchase requests made following the death or qualifying disability of a stockholder will not be subject to any minimum holding period.

The repurchase price per share for requests other than for death or disability will be equal to the most-recent estimated net asset value per share of our common stock calculated by our Advisor and approved by our board of directors in accordance with our valuation guidelines, or estimated per-share NAV, multiplied by a percentage equal to (i) 92.5%, if the person seeking repurchase has held his or her shares for a period greater than one year and less than two years; (ii) 95%, if the person seeking repurchase has held his or her shares for a period greater than two years and less than three years; (iii) 97.5%, if the person seeking repurchase has held his or her shares for a period greater than three years and less than four years; or (iv) 100%, if the person seeking repurchase has held his or her shares for a period greater than four years. In the case of requests for death or disability, the repurchase price per share will be equal to the estimated per-share NAV at the time of repurchase.

Repurchases pursuant to the SRP, when requested, generally will be made semiannually (each six-month period ending June 30 or December 31, a “fiscal semester”). Repurchases for any fiscal semester will be limited to a maximum of 2.5% of the weighted average number of shares of common stock outstanding during the previous fiscal year, with a maximum for any fiscal year of 5.0% of the weighted average number of shares of common stock outstanding during the previous fiscal year. Funding for repurchases pursuant to the SRP for any given fiscal semester will be limited to proceeds received during that same fiscal semester through the issuance of common stock pursuant to any DRIP in effect from time to time, provided that the Board has the power, in its sole discretion, to determine the amount of shares repurchased during any fiscal semester as well as the amount of funds to be used for that purpose. Any repurchase requests received during such fiscal semester will be paid at a price based on our estimated per share NAV applicable on the last day of such fiscal semester, as described above. Due to these limitations, we cannot guarantee that we will be able to accommodate all repurchase requests made during any fiscal semester or fiscal year. However, a stockholder may withdraw its request at any time or ask that we honor the request when funds are available. Pending repurchase requests will be honored on a pro rata basis. We will generally pay repurchase proceeds, less any applicable tax or other withholding required by law, by the 31st day following the end of the fiscal semester during which the repurchase request was made.

Calculations of our estimated per-share NAV will occur periodically, at the discretion of the Board, provided that such calculations will be made at least annually. Following its calculation, our estimated per-share NAV will be disclosed in a periodic report. The most recent calculation of our estimated per-share NAV approved by the Board occurred on November 4, 2015 based on our net asset value as of September 30, 2015 and was equal to $25.27.

When a stockholder requests redemption and the redemption is approved, we will reclassify such obligation from equity to a liability based on the settlement value of the obligation. Shares repurchased under the SRP will have the status of authorized but unissued shares.

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The following table reflects the number of shares repurchased under the SRP cumulatively through March 31, 2016:

	Number of Requests	Number of Shares Repurchased	Average Price per Share
Cumulative as of December 31, 2015	301	381,474	23.72
January 1 - January 31, 2016	—	—	—
February 1 - February 29, 2016	—	—	—
March 1 - March 31, 2016	—	—	—
Cumulative as of March 31, 2016	301	381,474	23.72

Item 3. Defaults upon Senior Securities.

Not applicable.

Item 4. Mine Safety Disclosures.

Not applicable.

Item 5. Other Information.

The Company entered into the Barclays Amendment as of May 12, 2016, pursuant to which the maturity date of the Barclays Repo Facility was extended to September 6, 2016 and the pricing rate for each purchased asset was increased by 0.50% per annum. For additional information refer to “Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations--Liquidity and Capital Resources.”

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Item 6. Exhibits.

EXHIBITS INDEX

The following exhibits are included in this Quarterly Report on Form 10-Q for the quarter ended March 31, 2016 (and are numbered in accordance with Item 601 of Regulation S-K).

Exhibit No.	Description
10.1*	First Amendment to Master Repurchase Agreement and First Amendment to Fee Letter, dated as of May 12, 2016, by and among Barclays Bank PLC, RFT BB Loan, LLC and Realty Finance Trust, Inc.
31.1*	Certification of the Principal Executive Officer of the Company pursuant to Securities Exchange Act Rule 13a - 14(a) or 15(d) - 14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2*	Certification of the Principal Financial Officer of the Company pursuant to Securities Exchange Act Rule 13a - 14(a) or 15(d) - 14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32*	Written statements of the Principal Executive Officer and Principal Financial Officer of the Company pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
99.1*	Amended and Restated Share Repurchase Program dated January 28, 2016.
101*	XBRL (eXtensible Business Reporting Language). The following materials from Realty Finance Trust, Inc.’s Quarterly Report on Form 10-Q for the three months ended September 30, 2015, formatted in XBRL: (i) the consolidated Balance Sheets, (ii) the consolidated Statements of Operations, (iii) the consolidated Statements of Comprehensive Income, (iv) the consolidated Statement of Changes in Stockholders' Equity, (v) the consolidated Statements of Cash Flows and (vi) the Notes to the consolidated Financial Statements.

____________________________________________

* Filed herewith.

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REALTY FINANCE TRUST, INC.

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	REALTY FINANCE TRUST, INC.
Dated: May 13, 2016	By: /s/ Peter M. Budko Name: Peter M. Budko Title: Chief Executive Officer and Interim President (Principal Executive Officer)
Dated: May 13, 2016	By: /s/ Nicholas Radesca Name: Nicholas Radesca Title: Chief Financial Officer, Secretary and Treasurer (Principal Financial Officer and Principal Accounting Officer)

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EX-10.1

Exhibit 10.1

FIRST AMENDMENT TO

MASTER REPURCHASE AGREEMENT and FIRST AMENDMENT TO FEE LETTER

FIRST AMENDMENT TO MASTER REPURCHASE AGREEMENT AND FIRST AMENDMENT TO FEE LETTER, dated as of May 12, 2016 (this “Amendment”), by and between Barclays Bank PLC, a public limited company organized under the laws of England and Wales(including any successor thereto, “Purchaser”), RFT BB Loan, LLC (formerly known as ARC RFT BB Loan, LLC), a limited liability company organized under the laws of the State of Delaware, as seller (together with its successors and permitted assigns, “Seller”) and Realty Finance Trust, Inc. (formerly known as ARC Realty Finance Trust, Inc.), a corporation organized under the laws of the State of Maryland, as guarantor (“Guarantor”). Capitalized terms used and not otherwise defined herein shall have the meanings given to such terms in the Repurchase Agreement (as defined below).

RECITALS

WHEREAS, Purchaser and Seller are parties to (i) that certain Master Repurchase Agreement, dated as of September 5, 2014 (as amended, restated, supplemented or otherwise modified prior to the date hereof, the “Existing Repurchase Agreement” and as amended by this Amendment, the “Repurchase Agreement”) and (ii) that certain Fee Letter, dated as of September 5, 2014 (as amended, restated, supplemented or otherwise modified prior to the date hereof, the “Existing Fee Letter” and as amended by this Amendment, the “Fee Letter”);

WHEREAS, Guarantor indirectly owns one hundred percent (100%) of the Capital Stock of Seller and Guarantor derives benefits, directly and indirectly, from the execution, delivery and performance by Seller of the Transaction Documents, and the transactions contemplated by the Repurchase Agreement and the other Transaction Documents;

WHEREAS, in connection with the Repurchase Agreement, Guarantor made that certain Guaranty, dated as of September 5, 2014, for the benefit of Purchaser (as amended, restated, supplemented or otherwise modified prior to the date hereof, the “Guaranty”); and

WHEREAS, Purchaser, Seller and Guarantor desire to make certain modifications to the Existing Repurchase Agreement and the Existing Fee Letter and to enter into the additional agreements set forth herein.

NOW THEREFORE, in consideration of the foregoing recitals, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto, intending to be legally bound, agree as follows:

ARTICLE I.

AMENDMENTS

Section 1.Amendments to the Existing Repurchase Agreement.

(a)Article 3(i) of the Existing Repurchase Agreement is hereby amended by deleting the first sentence thereof and replacing it with the following:

Provided that all of the extension conditions listed in clause (ii) below (collectively, the “Termination Date Extension Conditions”) shall have been satisfied, Purchaser may, in its sole discretion, extend the then-current Termination Date (each, a “Current Termination Date”), for a period not to exceed six (6) additional months (each, an “Extension Period”).

(b)Article 3(i)(ii)(A) of the Existing Repurchase Agreement is hereby amended by deleting the first sentence thereof and replacing it with the following:

(A)    Seller shall have delivered to Purchaser written notice of its request to extend the Current Termination Date at least sixty (60) days, but not more than one hundred twenty (120) days, prior to the Current Termination Date.

Section 2.Amendments to the Existing Fee Letter.

(a)Section 1 of the Existing Fee Letter is hereby amended by deleting the definition of “Spread” in its entirety and replacing it with the following:

“Spread” shall mean, with respect to a Transaction involving a Purchased Asset, the sum of (a)(i) so long as no Event of Default shall have occurred and be continuing, the interest rate per annum set forth in the column entitled “Spread” in the Pricing Matrix for the applicable type of Purchased Asset or (ii) after the occurrence and during the continuance of an Event of Default, the rate per annum equal to the rate per annum set forth in clause (a) above plus 5%, plus (b) with respect to each Pricing Rate Period beginning with the Pricing Rate Period that started on March 15, 2016, 0.50%.

(b)The definition of “Exit Fee” in Section 1 of the Existing Fee Letter is hereby amended by deleting clause (ii) of the proviso therein and replacing it with “(ii) [reserved]”.

ARTICLE II.

OTHER AGREEMENTS

(a)On or prior to the date hereof, Seller shall pay to Purchaser, by wire transfer of immediately available funds, a non-refundable fee in the amount of U.S. $800,000.

(b)On or prior to the Remittance Date occurring on May 16, 2016, Seller shall pay to Purchaser, by wire transfer of immediately available funds, an amount equal to all accreted and unpaid Purchase Price Differential resulting from the modification of the Spread in accordance with the terms set forth herein, which amount shall be deemed earned on the date hereof.

(c)Seller, Guarantor and Purchaser agree that, as of the date hereof, the Termination Date Extension Conditions were satisfied with respect to the current Extension Period and the “Current Termination Date” under the Repurchase Agreement shall be September 6, 2016.

(d)Seller, Guarantor and Purchaser agree that, as of the date hereof, the “Repurchase Date” for each existing Purchased Asset under the Repurchase Agreement shall be September 6, 2016.

ARTICLE III.

REPRESENTATIONS

(a)Each of Seller and Guarantor hereby represents and warrants (as to itself) to Purchaser that, as of the date hereof:

(i)it is duly incorporated or organized, validly existing and in good standing under the laws of its jurisdiction of formation or organization;

(ii)it is duly authorized to execute and deliver this Amendment and to perform its obligations under this Amendment and the other Transaction Documents to which it is a party, as modified hereby, and has taken all necessary action to authorize such execution, delivery and performance;

(iii)the execution, delivery and performance of this Amendment of the other Transaction Documents to which it is a party, as modified hereby, will not violate any Requirement of Law applicable to it or its organizational documents or any agreement by which it is bound or by which any of its assets are affected;

(iv)the person signing this Amendment on its behalf is duly authorized to do so on its behalf;

(v)this Amendment has been duly executed and delivered by it;

(vi)this Amendment and each other Transaction Document to which it is a party, as modified hereby, constitutes its legal, valid and binding obligation, enforceable against it in accordance with its terms, except as enforceability may be limited by bankruptcy, insolvency, other limitations on creditors’ rights generally and general principles of equity;

(vii)no consent, license, permit, notice, approval or authorization of, or registration, filing or declaration or other actions with, any Governmental Authority or other Person is required in connection with the execution, delivery, performance, validity or enforceability by or against it of this Amendment or any other Transaction Document to which it is a party, as modified hereby; and

(b)Seller hereby represents and warrants to Purchaser that, as of the date hereof, all representations and warranties made by it in Article 9 of the Existing Repurchase Agreement (other than those contained in Article 9(b)(xiv)(D) of the Existing Repurchase Agreement) are true and correct.

(c)Guarantor hereby represents and warrants to Purchaser that, as of the date hereof, all representations and warranties made by it in Article IV of the Guaranty are true and correct.

ARTICLE IV.

CONDITIONS PRECEDENT

The effectiveness of this Amendment is subject to the satisfaction of the following conditions precedent on or before the date hereof:

(a)The representations and warranties of Seller and Guarantor set forth herein shall be true, correct, complete and accurate in all respects as of the date hereof;

(b)Seller shall have paid to Purchaser the amounts set forth in Article 2(a) above; and

(c)Seller shall have paid or reimbursed all of Purchaser’s out-of-pocket costs and expenses, including reasonable fees and expenses of counsel, incurred in connection with the preparation, negotiation, execution and consummation of this Amendment and other costs and expenses due and payable as of the date hereof pursuant to Article 25(b) of the Repurchase Agreement.

ARTICLE V.

GOVERNING LAW

THIS AMENDMENT SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, AND THE OBLIGATIONS, RIGHTS, AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS WITHOUT REGARD TO THE CONFLICT OF LAWS DOCTRINE APPLIED IN SUCH STATE (OTHER THAN SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK).

ARTICLE VI.

MISCELLANEOUS

(a)Limitations. This Amendment shall not constitute, and shall not be construed as, a waiver of any right or remedy of Purchaser under the Repurchase Agreement. All such rights and remedies are hereby expressly reserved by Purchaser.

(b)Full Agreement. This Amendment contains a final and complete integration of all prior expressions by the parties with respect to the subject matter hereof.

(c)Amendment. This Amendment may not be amended or otherwise modified, waived or supplemented except by an instrument in writing signed by the parties hereto.

(d)Severability. Each provision of this Amendment shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Amendment shall be prohibited by or be invalid under such law, such provision shall be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of such provision or the remaining provisions of this Amendment.

(e)Binding Agreement; Successors and Assigns. This Amendment shall inure to the benefit of and the obligations hereunder shall be binding upon the parties hereto and their respective successors and assigns.

(f)Headings. The headings in this Amendment are for convenience of reference only and shall not affect the interpretation or construction of this Amendment.

(g)Counterparts. This Amendment may be executed in counterparts, each of which so executed shall be deemed to be an original, but all of such counterparts shall together constitute but one and the same instrument. The parties intend that faxed signatures and electronically imaged signatures (such as PDF files) shall constitute original signatures and are binding on all parties.

(h)Transaction Document. This Amendment, the Existing Repurchase Agreement, as amended by this Amendment, and the Existing Fee Letter, as amended by this Amendment, are each a Transaction Document. Except as expressly amended or modified hereby, the Existing Repurchase Agreement, the Existing Fee Letter and the other Transaction Documents shall each be and shall remain in full force and effect in accordance with their terms.

[SIGNATURES FOLLOW]

IN WITNESS WHEREOF, the parties have caused this Amendment to be duly executed as of the date first above written.

BARCLAYS BANK PLC, as Purchaser

By: /s/ Michael Birajiclian    

Name: Michael Birajiclian

Title: Authorized Signatory

RFT BB LOAN, LLC, as Seller

By: /s/ Peter M. Budko    

Name: Peter M. Budko

Title: Chief Executive Officer

REALTY FINANCE TRUST, INC., as Guarantor

By: /s/ Peter M. Budko

Name: Peter M. Budko

Title: Chief Executive Officer

EX-31.1

Exhibit 31.1

I, Peter M. Budko, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q for the quarter ended March 31, 2016 of Realty Finance Trust, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.        

Date:	May 13, 2016	/s/ Peter M. Budko
		Peter M. Budko Chief Executive Officer, Interim President (Principal Executive Officer)

EX-31.2

Exhibit 31.2

I, Nicholas Radesca, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q for the quarter ended March 31, 2016 of Realty Finance Trust, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:	May 13, 2016	/s/ Nicholas Radesca
		Nicholas Radesca Chief Financial Officer, Secretary and Treasurer (Principal Financial and Accounting Officer)

EX-32

Exhibit 32

SECTION 1350 CERTIFICATIONS

This Certificate is being delivered pursuant to the requirements of Section 1350 of Chapter 63 (Mail Fraud) of Title 18 (Crimes and Criminal Procedures) of the United States Code, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, and shall not, except to the extent required by the Sarbanes-Oxley Act of 2002, be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended.

The undersigned, who are the Chief Executive Officer and Chief Financial Officer of Realty Finance Trust, Inc. (the “Company”), each hereby certify to his knowledge as follows:

The Quarterly Report on Form 10-Q of the Company, which accompanies this Certificate, fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, and all information contained in this Quarterly Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date:	May 13, 2016	/s/ Peter M. Budko
		Peter M. Budko Chief Executive Officer, Interim President (Principal Executive Officer)
		/s/ Nicholas Radesca
		Nicholas Radesca Chief Financial Officer, Secretary and Treasurer (Principal Financial and Accounting Officer)

EX-99.1

Exhibit 99.1

AMENDED AND RESTATED SHARE REPURCHASE PROGRAM 

Realty Finance Trust, Inc.

Realty Finance Trust, Inc., a Maryland corporation (the “Company”), has adopted this Share Repurchase Program (the “SRP”) effective as of February 28, 2016 (the “Effective Date”), to be administered by the Company on the terms and conditions set forth below.

1. Participation in the SRP.

a. Only those holders of shares (the “Shares”) of common stock of the Company, par value $0.01 per share (“Common Stock”), who have purchased Shares from the Company or received their Shares from the Company (directly or indirectly) through one or more non-cash transactions may participate in the SRP (each such holder, including the estates, heirs or beneficiaries of such holders, a “SRP Qualifying Shareholder”). Under the SRP and subject to the conditions and limitations described herein, SRP Qualifying Shareholders may request at any time that the Company repurchase all or any portion of Shares held by such SRP Qualifying Shareholder if such repurchase otherwise complies with the provisions of Maryland law.

b. SRP Qualifying Shareholders who have held their Shares for at least one year will be eligible to request a repurchase of their Shares; provided, however, the Company’s board of directors (the “Board”) may, in its sole discretion, waive this requirement with respect to any Shares, including any Shares purchased pursuant to any distribution reinvestment plan (“DRIP”) in effect from time to time.

c. SRP Qualifying Shareholders who have not held their Shares for at least one year (or for whom the one-year requirement has not been waived by the Board) will be eligible to request a repurchase of their Shares only in the case of death or disability of the SRP Qualifying Shareholder (repurchases pursuant to such requests, “Hardship Repurchases”). A SRP Qualifying Shareholder must submit documentation to the Company of his or her death or disability at the same time a request for a Hardship Repurchase is presented for consideration and such documentation must be, in the sole discretion of the Company, complete and suitable for the intended purposes.

d. For purposes of calculating any holding period of Shares held by SRP Qualifying Shareholders under this Section 1 (or any other Section of the SRP, including Section 2), the first day of such holding period shall be the day such Shares were first purchased from the Company.

e. A SRP Qualifying Shareholder who wishes to have Shares repurchased must mail or deliver to the Company a written request on a form provided by the Company and executed by the SRP Qualifying Shareholder, its trustee or authorized agent. An estate, heir or beneficiary that wishes to have Shares repurchased following the death of a SRP Qualifying Shareholder must mail or deliver to the Company a written request on a form provided by the Company, including evidence acceptable to the Company of the death of the SRP Qualifying Shareholder, and executed by the executor or executrix of the estate, the heir or beneficiary, or their trustee or authorized agent. Shares not repurchased may be passed to an estate, heir or beneficiary following the death of a SRP Qualifying Shareholder. If the Shares are to be repurchased under any conditions outlined herein, the Company will forward the documents necessary to effect the repurchase, including any signature guaranty the Company may require.

f. In general, a SRP Qualifying Shareholder may present to the Company fewer than all of the Shares then owned for repurchase, except that the minimum number of Shares that must be presented for repurchase shall be at least 25% of the SRP Qualifying Shareholder’s Shares. However, if the repurchase request is made within six months of the event giving rise to the special circumstances described in this sentence, where repurchase is being requested (i) on behalf of the estate, heirs or beneficiaries, as applicable, of a deceased SRP Qualifying Shareholder; (ii) by a SRP Qualifying Shareholder due to another involuntary exigent circumstance, such as bankruptcy; or (iii) by a SRP Qualifying Shareholder due to a mandatory distribution under such SRP Qualifying Shareholder’s IRA, a minimum of 10% of the SRP Qualifying Shareholder’s Shares may be presented for repurchase; provided, however, that any future repurchase request by such SRP Qualifying

Shareholder must present for repurchase at least 25% of such SRP Qualifying Shareholder’s remaining Shares.

g. Subject to Section 2 and Section 3, the Company will pay repurchase proceeds, less any applicable tax or other withholding required by law, on or before the 31st day following the end of the six-month period commencing on January 1 and July 1 of each fiscal year (each such period, a “Fiscal Semi-Annual Period”) during which the repurchase request was made.

2. Repurchase Price for Shares under the SRP.

a. With respect to repurchase requests received between January 1, 2016 and the Effective Date, the Company will repurchase Shares pursuant to the SRP based on the repurchase price in effect prior to the Effective Date as part of the repurchases made with respect to the Fiscal Semi-Annual Period ending June 30, 2016.

b. Except as provided in Section 2(a), following the Effective Date, the repurchase price per Share shall (as adjusted for any stock dividend, stock split, combination, reorganization, recapitalization, reclassification or other similar event involving a change in the capital structure of the Common Stock) be calculated as follows:

i. for SRP Qualifying Shareholders who have continuously held their Shares for between one year and two years, 92.5% of the estimated net asset value per share (“Estimated Per-Share NAV”) of the Common Stock, calculated by the Company’s advisor, Realty Finance Advisors, LLC (the “Advisor”) in accordance with the Company’s valuation guidelines and approved by the Board, in effect on the last day of the Fiscal Semi-Annual Period in which such repurchase request was received (such Estimated Per-Share NAV, the “Applicable Estimated Per-Share NAV”);

ii. for SRP Qualifying Shareholders who have continuously held their Shares for between two years and three years, 95.0% of the Applicable Estimated Per-Share NAV;

iii. for SRP Qualifying Shareholders who have continuously held their Shares for at between three years and four years, 97.5% of the Applicable Estimated Per-Share NAV;

iv. for SRP Qualifying Shareholders who have continuously held their Shares for more than four years, 100% of the Applicable Estimated Per-Share NAV; and

v. for any Hardship Repurchases, 100% of the Applicable Estimated Per-Share NAV.

c. A SRP Qualifying Shareholder may cancel his, her or its repurchase request by notifying a customer service representative on or prior to the last day of the Fiscal Semi-Annual Period during which the repurchase request was made. Customer service representatives are available on the Company’s toll-free line, 866-992-0063, Option 1. The line is open on each business day between the hours of 9:00 a.m. and 6:00 p.m. Eastern. If the repurchase request is not cancelled before the end of the Fiscal Semi-Annual Period, the SRP Qualifying Shareholder will be contractually bound to the repurchase of the Shares and will not be permitted to cancel the repurchase request prior to the payment of repurchase proceeds.

3. Limits on Repurchases under the SRP.

a. Repurchases under the SRP (including with respect to repurchase requests made prior to the Effective Date) will be limited for any Fiscal Semi-Annual Period to a maximum of 2.5% of the weighted average number of shares of Common Stock outstanding during the previous fiscal year.

b. Repurchases under the SRP (including with respect to repurchase requests made prior to the Effective Date) will be limited for any period of one fiscal year to a maximum of 5.0% of the weighted average number of shares of Common Stock outstanding during the previous fiscal year.

c. SRP Qualifying Shareholders will only be able to have their Shares repurchased to the extent that the Company has sufficient liquid assets. In each Fiscal Semi-Annual Period, funding for the SRP will be limited to proceeds received during that same Fiscal Semi-Annual Period through the issuance of Common Stock pursuant to any DRIP in effect from time to time; providedthat the Board has the power, in its sole discretion, to determine the number of Shares repurchased during any Fiscal Semi-Annual Period as well as the amount of funds to be used for that purpose.

d. Following each Fiscal Semi-Annual Period, the Advisor will review all repurchase requests received during such Fiscal Semi-Annual Period and then report to the Company’s management and the Board the total number of Shares subject to repurchase requests, including the total number of Hardship Requests. If, following review of this report by the Company’s management and the Board, less than all repurchase requests for any Fiscal Semi-Annual Period are accommodated due to the limitations described in Section 3(a) and 3(b), or a determination by the Board as described in Section 3(c), Shares will be repurchased as follows: (i) first, pro rata as to Hardship Requests; and (ii) second, pro rata as to all other repurchase requests.

4. Amendment, Suspension or Termination of the SRP.

a. The Board may amend, suspend (in whole or in part) or terminate the SRP at any time; provided, that no such amendment, suspension or termination shall become effective until at least 30 days after the Company files with the Securities and Exchange Commission (the “SEC”) a Current Report on Form 8-K (or includes similar disclosure in another periodic report) announcing such amendment, suspension or termination; provided, further, that any material modifications, suspension or termination of the SRP by the Board will be disclosed promptly in reports the Company files with the SEC, a press release and/or via the Company’s website.

b. Notwithstanding Section 4(a), the Board reserves the right, in its sole discretion, to reject any repurchase request without prior notice.

c. The SRP will immediately terminate if the Shares are listed on any national securities exchange.

5. Status of Shares Repurchased under the SRP. Shares the Company repurchases under the SRP will have the status of authorized but unissued shares of Common Stock. Repurchased Shares will not be reissued as shares of Common Stock unless they are first registered with the SEC under the Securities Act of 1933 and under appropriate state securities laws or otherwise issued in compliance with such laws.

6. Absence of Liability. The Company shall not have any responsibility or liability as to the value of the Shares or any change in the value of the Shares. The Company shall not be liable for any act done in good faith, or for any good faith omission to act hereunder.

7. Governing Law. This SRP shall be governed by the laws of the State of Maryland.

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Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2016	Apr. 30, 2016
Document and Entity Information [Abstract]
Entity Registrant Name	Realty Finance Trust, Inc.
Entity Central Index Key	0001562528
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Document Type	10-Q
Document Period End Date	Mar. 31, 2016
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q1
Amendment Flag	false
Entity Common Stock, Shares Outstanding		31,732,229

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Consolidated Balance Sheets - USD ($) $ in Thousands		Mar. 31, 2016	Dec. 31, 2015
ASSETS
Cash and cash equivalents		$ 49,207	$ 14,807
Restricted cash		6,498	5,366
Commercial mortgage loans, held for investment, net	[1]	1,126,350	1,124,201
Real estate securities, available for sale, at fair value		124,871	130,754
Receivable for loan repayment		3	1,307
Accrued interest receivable	[2]	5,160	5,360
Prepaid expenses and other assets		649	689
Total assets		1,312,738	1,282,484
LIABILITIES AND STOCKHOLDERS' EQUITY
Collateralized loan obligations		287,320	287,229
Interest payable	[3]	924	792
Distributions payable		5,530	5,552
Accounts payable and accrued expenses		1,340	6,805
Due to affiliate		4,403	4,327
Total liabilities		$ 663,549	$ 628,155
Commitments and Contingencies
Preferred stock, $0.01 par value, 50,000,000 authorized, none issued and outstanding as of March 31, 2016 and December 31, 2015		$ 0	$ 0
Convertible stock (promote shares); $0.01 par value, 1,000 shares authorized, issued and outstanding as of March 31, 2016 and December 31, 2015		1	1
Common stock, $0.01 par value, 949,999,000 shares authorized, 31,645,633 and 31,385,280 shares issued and outstanding as of March 31, 2016 and December 31, 2015, respectively		316	314
Additional paid-in capital		698,171	691,590
Accumulated other comprehensive loss		(7,218)	(2,254)
Accumulated deficit		(42,081)	(35,322)
Total stockholders' equity		649,189	654,329
Total liabilities and stockholders' equity		1,312,738	1,282,484
Commercial mortgage loans
ASSETS
Real estate securities, available for sale, at fair value		124,871	130,754
LIABILITIES AND STOCKHOLDERS' EQUITY
Repurchase agreements		243,583	206,239
Real estate securities
LIABILITIES AND STOCKHOLDERS' EQUITY
Repurchase agreements		$ 120,449	$ 117,211

[1] Includes $426,447 and $426,155 of loans pledged as collateral on collateralized loan obligations ("CLO"), a variable interest entity ("VIE") as of March 31, 2016 and December 31, 2015, respectively.

[2] Includes $1,076 and $1,048 of interest receivable for loans pledged as collateral on CLO, a VIE as of March 31, 2016 and December 31, 2015, respectively.

[3] Includes $530 and $513 of interest payable for loans pledged as collateral on CLO, a VIE as of March 31, 2016 and December 31, 2015, respectively.

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Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands		Mar. 31, 2016	Dec. 31, 2015
Allowance		$ 1,053	$ 888
Preferred stock, par value per share (in dollars per share)		$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)		50,000,000	50,000,000
Preferred stock, shares issued (in shares)		0	0
Preferred stock, shares outstanding (in shares)		0	0
Convertible stock, par value per share (in dollars per share)		$ 0.01	$ 0.01
Convertible stock, shares authorized (in shares)		1,000	1,000
Convertible stock, shares issued (in shares)		1,000	1,000
Convertible stock, shares outstanding (in shares)		1,000	1,000
Common stock, par value per share (in dollars per share)		$ 0.01	$ 0.01
Common stock, shares authorized (in shares)		949,999,000	949,999,000
Common stock, shares issued (in shares)		31,645,633	31,385,280
Common stock, shares outstanding (in shares)		31,645,633	31,385,280
Loans pledged as collateral		$ 426,447	$ 426,155
Interest receivable	[1]	5,160	5,360
Interest payable	[2]	924	792
Variable Interest Entity, Primary Beneficiary
Interest receivable		1,076	1,048
Interest payable		$ 530	$ 513

[1] Includes $1,076 and $1,048 of interest receivable for loans pledged as collateral on CLO, a VIE as of March 31, 2016 and December 31, 2015, respectively.

[2] Includes $530 and $513 of interest payable for loans pledged as collateral on CLO, a VIE as of March 31, 2016 and December 31, 2015, respectively.

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Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Interest Income:
Interest income	$ 20,291	$ 9,605
Interest expense	4,768	1,933
Net interest income	15,523	7,672
Expenses:
Asset management and subordinated performance fee	3,010	362
Acquisition fees	157	1,032
Administrative services expenses	816	0
Professional fees	1,261	1,379
Other expenses	694	123
Loan loss provision	165	144
Total expenses	6,103	3,040
Income before income taxes	9,420	4,632
Income tax provision	0	0
Net income	$ 9,420	$ 4,632
Basic net income per share (in dollars per share)	$ 0.30	$ 0.27
Diluted net income per share (in dollars per share)	$ 0.30	$ 0.27
Basic weighted average shares outstanding (in shares)	31,548,897	17,279,713
Diluted weighted average shares outstanding (in shares)	31,555,011	17,284,086

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Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Statement of Comprehensive Income [Abstract]
Net income	$ 9,420	$ 4,632
Unrealized (loss)/gain on available-for-sale securities	(4,964)	141
Comprehensive income attributable to Realty Finance Trust, Inc.	$ 4,456	$ 4,773

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Consolidated Statements of Changes In Stockholders' Equity - 3 months ended Mar. 31, 2016 - USD ($) $ in Thousands	Total	Convertible Stock	Common Stock	Additional Paid-In Capital	Accumulated Other Comprehensive Loss	Accumulated Deficit
Balance, shares at Dec. 31, 2015		1,000	31,385,280
Balance at Dec. 31, 2015	$ 654,329	$ 1	$ 314	$ 691,590	$ (2,254)	$ (35,322)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common stock repurchases	(8)			(8)
Common stock issued under DRIP (in shares)			260,353
Common stock issued through distribution reinvestment plan	6,582		$ 2	6,580
Share-based compensation	9			9
Net income	9,420					9,420
Distributions declared	(16,179)					(16,179)
Other comprehensive loss	(4,964)				(4,964)
Balance, shares at Mar. 31, 2016		1,000	31,645,633
Balance at Mar. 31, 2016	$ 649,189	$ 1	$ 316	$ 698,171	$ (7,218)	$ (42,081)

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Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Cash flows from operating activities:
Net income	$ 9,420	$ 4,632
Adjustments to reconcile net income to net cash provided by operating activities:
Premium amortization and (discount accretion), net	(575)	(189)
Accretion of deferred commitment fees	(382)	(145)
Amortization of deferred financing costs	541	479
Share-based compensation	9	6
Loan loss provision	165	144
Changes in assets and liabilities:
Accrued interest receivable	582	705
Prepaid expenses and other assets	(35)	859
Accounts payable and accrued expenses	155	(364)
Due to affiliates	76	(894)
Interest payable	132	25
Net cash provided by operating activities	10,088	5,258
Cash flows from investing activities:
Origination and purchase of commercial mortgage loans	(9,697)	(116,434)
Purchase of real estate securities	0	(8,016)
Principal repayments received on commercial mortgage loans	9,253	14,321
Principal repayments received on real estate securities	928	0
Net cash provided by (used in) investing activities	484	(110,129)
Cash flows from financing activities:
Proceeds from issuances of common stock	0	92,806
Common stock repurchases	(6,003)	(144)
Payments of offering costs and fees related to common stock issuances	0	(9,178)
Borrowings on repurchase agreements - commercial mortgage loans	85,614	38,376
Repayments of repurchase agreements - commercial mortgage loans	(48,270)	(6,238)
Borrowings on repurchase agreements - real estate securities	319,001	99,560
Repayments of repurchase agreements - real estate securities	(315,763)	(88,095)
Increase in restricted cash related to financing activities	(1,132)	0
Payments of deferred financing costs	0	(750)
Distributions paid	(9,619)	(4,697)
Net cash provided by financing activities	23,828	121,640
Net change in cash	34,400	16,769
Cash, beginning of period	14,807	386
Cash, end of period	49,207	17,155
Supplemental disclosures of cash flow information:
Income taxes paid	0	9
Interest paid	4,095	2,471
Supplemental disclosures of non-cash flow information:
Distributions payable	5,530	3,269
Common stock issued through distribution reinvestment plan	6,582	3,445
Receivable for common stock issued	$ 0	$ 3,006

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Organization and Business Operations

3 Months Ended

Mar. 31, 2016

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization and Business Operations

Organization and Business Operations

Realty Finance Trust, Inc. (the "Company") was incorporated in Maryland on November 15, 2012 and conducts its operations to qualify as a real estate investment trust ("REIT") for U.S. federal income tax purposes beginning with the taxable year ended December 31, 2013. Substantially all of the Company's business is conducted through Realty Finance Operating Partnership, L.P. (the “OP”), a Delaware limited partnership. Realty Finance Advisors, LLC is the Company's advisor (the "Advisor"). The Company is the sole general partner and directly or indirectly hold all of the units of limited partner interests in the OP. Additionally, the Advisor contributed $1,000 to the Company in exchange for 1,000 convertible shares of Realty Finance Trust, Inc. The convertible shares will automatically convert to shares of the Company's common stock upon the first occurrence of any of the following triggering events, (each a "Triggering Event"): (i) the Company has paid total distributions on the then-outstanding shares of the Company's common stock in an amount equal to or in excess of the sum of the invested capital (as defined in the Company's charter) plus an aggregate 6.0% cumulative, pre-tax, non-compounded, annual return on such invested capital, (ii) a listing of the Company's shares of common stock on a national securities exchange or (iii) the termination of the Company's advisory agreement under certain circumstances. The Company did not incur any of the aforementioned trigger events to date.

Prior to January 2016 the Company was offering for sale a maximum of 80.0 million shares of common stock, $0.01 par value per share, on a reasonable best efforts basis, pursuant to a registration statement on Form S-11 (the "Offering") filed with the U.S. Securities and Exchange Commission under the Securities Act of 1933, as amended. The Offering also covered the offer and sale of up to approximately 16.8 million shares of common stock pursuant to a distribution reinvestment plan (the "DRIP") under which common stockholders may elect to have their distributions reinvested in additional shares of the Company’s common stock. Effective January 2016, the Company terminated the Offering, deregistered 4,069 unsold shares from the Offering and reallocated 49.7 million unsold shares from the Offering to the DRIP offering.

The Company is in business to originate, acquire and manage a diversified portfolio of commercial real estate debt secured by properties located both within and outside of the United States. The Company also invests in commercial real estate securities. Commercial real estate debt may include first mortgage loans, subordinated mortgage loans, mezzanine loans and participations in such loans. Real estate securities may include commercial mortgage-backed securities ("CMBS"), senior unsecured debt of publicly traded REITs, debt or equity securities of other publicly traded real estate companies and collateralized debt obligations ("CDOs").

The Company has no employees. The Company has retained the Advisor to manage the Company's affairs on a day-to-day basis. The Advisor is controlled by AR Global Investments, LLC ("AR Global"), the parent of American Realty Capital VIII, LLC (the "Sponsor"), as a result of which they are related parties and each of them has received or will receive compensation and fees for services related to the investment and management of the Company's assets, the operations of the Company and the liquidation of the Company.

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Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2016

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

Basis of Accounting

The accompanying consolidated financial statements and related footnotes are unaudited and have been prepared on the accrual basis of accounting in conformity with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial statements and pursuant to the requirements for reporting on Form 10-Q and Regulation S-X, as appropriate. Accordingly, the consolidated financial statements may not include all of the information and notes required by GAAP for annual consolidated financial statements. GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the reported periods. Changes in the economic environment, financial markets and any other parameters used in determining these estimates could cause actual results to differ materially. In the opinion of management, the interim data includes all adjustments, of a normal and recurring nature, necessary for a fair statement of the results for the periods presented. The current period’s results of operations will not necessarily be indicative of results that ultimately may be achieved for the entire year or any subsequent interim periods.

These financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto as of, and for the year ended December 31, 2015, which are included in the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission ("SEC") on March 11, 2016. There have been no significant changes to the Company's significant accounting policies during the three months ended March 31, 2016, other than the updates described below.

Principles of Consolidation

The Company consolidate all entities that the Company control through either majority ownership or voting rights. In addition, the Company consolidates all variable interest entities ("VIE") of which the Company is considered the primarily beneficiary. VIEs are defined as entities in which equity investors (i) do not have the characteristics of a controlling financial interest and/or (ii) do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties. The entity that consolidates a VIE is known as its primary beneficiary and is generally the entity with (i) the power to direct the activities that most significantly affect the VIE’s economic performance and (ii) the right to receive benefits from the VIE or the obligation to absorb losses of the VIE that could be significant to the VIE.

The accompanying consolidated financial statements include the accounts of the Company, its wholly owned subsidiary, Realty Finance Operating Partnership, L.P. (the "OP") and its subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation.In determining whether the Company has a controlling financial interest in a joint venture and the requirement to consolidate the accounts of that entity, management considers factors such as ownership interest, authority to make decisions and contractual and substantive participating rights of the other partners or members as well as whether the entity is a variable interest entity ("VIE") for which the Company is the primary beneficiary. The Company has determined the OP is a VIE of which the Company is the primary beneficiary. Substantially all of the Company's assets and liabilities are held by the OP.

The accompanying consolidated financial statements include the accounts of a collateralized loan obligation ("CLO") issued and securitized by a wholly owned subsidiary of the Company. The Company has determined the CLO is a VIE of which the Company's subsidiary is the primary beneficiary. The Company has disclosed the assets and liabilities of the CLO on the face of the balance sheet in accordance with ASC 810 - Consolidation.

Allowance for Loan Losses

The allowance for loan losses reflects management's estimate of loan losses inherent in the loan portfolio as of the balance sheet date. The reserve is increased through the loan loss provision on the Company's consolidated statement of operations and is decreased by charge-offs when losses are confirmed through the receipt of assets, such as cash in a pre-foreclosure sale or upon ownership control of the underlying collateral in full satisfaction of the loan upon foreclosure or when significant collection efforts have ceased. The Company uses a uniform process for determining its allowance for loan losses. The allowance for loan losses includes a general, formula-based component and an asset-specific component.

General reserves are recorded when (i) available information as of each balance sheet date indicates that it is probable a loss has occurred in the portfolio and (ii) the amount of the loss can be reasonably estimated. The Company currently estimates loss rates based on historical realized losses experienced in the industry and takes into account current collateral and economic conditions affecting the probability and severity of losses when establishing the allowance for loan losses. The Company performs a comprehensive analysis of its loan portfolio and assigns risk ratings to loans that incorporate management's current judgments about their credit quality based on all known and relevant internal and external factors that may affect collectability. The Company considers, among other things, payment status, lien position, borrower financial resources and investment in collateral, collateral type, project economics and geographic location as well as national and regional economic factors. This methodology results in loans being segmented by risk classification into risk rating categories that are associated with estimated probabilities of default and principal loss. Ratings range from "1" to "5" with "1" representing the lowest risk of loss and "5" representing the highest risk of loss.

The asset-specific reserve component relates to reserves for losses on individual impaired loans. The Company considers a loan to be impaired when, based upon current information and events, it believes that it is probable that the Company will be unable to collect all amounts due under the contractual terms of the loan agreement. This assessment is made on an individual loan basis each quarter based on such factors as payment status, lien position, borrower financial resources and investment in collateral, collateral type, project economics and geographical location as well as national and regional economic factors. A reserve is established for an impaired loan when the present value of payments expected to be received, observable market prices or the estimated fair value of the collateral (for loans that are dependent on the collateral for repayment) is lower than the carrying value of that loan.

For collateral dependent impaired loans, impairment is measured using the estimated fair value of collateral less the estimated cost to sell. Valuations are performed or obtained at the time a loan is determined to be impaired and designated non-performing, and they are updated if circumstances indicate that a significant change in value has occurred. The Advisor generally will use the income approach through internally developed valuation models to estimate the fair value of the collateral for such loans. In more limited cases, the Advisor will obtain external "as is" appraisals for loan collateral, generally when third party participations exist.

A loan is also considered impaired if its terms are modified in a troubled debt restructuring ("TDR"). A TDR occurs when a concession is granted and the debtor is experiencing financial difficulties. Impairments on TDR loans are generally measured based on the present value of expected future cash flows discounted at the effective interest rate of the original loans.

The Company designates non-performing loans at such time as (i) loan payments become 90-days past due; (ii) the loan has a maturity default; or (iii) in the opinion of the Company, it is probable the Company will be unable to collect all amounts due according to the contractual terms of the loan. Income recognition will be suspended when a loan is designated non-performing and resumed only when the suspended loan becomes contractually current and performance is demonstrated to have resumed. A loan will be written off when it is no longer realizable and legally discharged.

Per Share Data

The Company calculates basic earnings per share by dividing net income attributable to the Company for the period by the weighted-average number of shares of common stock outstanding for that period. Diluted earnings per share reflects the potential dilution that could occur from shares issuable in connection with the restricted stock plan and if convertible shares were exercised, except when doing so would be anti-dilutive.

Reportable Segments

The Company conducts its business through the following segments:

• The real estate debt business which is focused on originating, acquiring and asset managing commercial real estate debt investments, including first mortgage loans, subordinate mortgages, mezzanine loans and participations in such loans.

• The real estate securities business which is focused on investing in and asset managing commercial real estate securities primarily consisting of CMBS and may include unsecured REIT debt, CDO notes and other securities.

See Note 12 - Segment Reporting for further information regarding the Company's segments.

Recently Issued Accounting Pronouncements

In February 2015, the FASB amended the accounting for consolidation of certain legal entities. The amendments modify the evaluation of whether certain legal entities are VIEs or voting interest entities, eliminate the presumption that a general partner should consolidate a limited partnership and affect the consolidation analysis of reporting entities that are involved with VIEs (particularly those that have fee arrangements and related party relationships). The revised guidance is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. Early adoption was permitted, including adoption in an interim period. The Company elected to adopt this guidance effective January 1, 2016. The Company has evaluated the impact of the adoption of the new guidance on its consolidated financial statements and has determined the Company’s OP is considered a VIE. However, the Company meets the disclosure exemption criteria as the Company is the primary beneficiary of the VIE and the Company's partnership interest is considered a majority voting interest in a business and the assets of the OP can be used for purposes other than settling its obligation, such as paying distributions. As such, the new guidance did not have a material impact on the Company's consolidated financial statements.

In March 2016, the FASB issued an update that changes the accounting for certain aspects of share-based compensation. Among other things, the revised guidance allows companies to make an entity-wide accounting policy election to either estimate the number of awards that are expected to vest or account for forfeitures when they occur. The revised guidance is effective for reporting periods beginning after December 15, 2016. Early adoption is permitted. The Company is currently evaluating impact of this new guidance, however, adoption of the guidance is not expected to have material impact to the Company's consolidated financial statements.

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Commercial Mortgage Loans

3 Months Ended

Mar. 31, 2016

Receivables [Abstract]

Commercial Mortgage Loans

Commercial Mortgage Loans

The following table is a summary of the Company's commercial mortgage loan carrying values by class (in thousands):

	March 31, 2016		December 31, 2015
Senior loans	$	901,272	$	894,075
Mezzanine loans	216,131		221,014
Subordinated loans	10,000		10,000
Total gross carrying value of loans	1,127,403		1,125,089
Less: Allowance for loan losses	1,053		888
Total commercial mortgage loans, net	$	1,126,350	$	1,124,201

The following table presents the activity in the Company's allowance for loan losses (in thousands):

	Three Months Ended March 31, 2016		Three Months Ended March 31, 2015
Beginning of period	$	888	$	570
Provision for loan losses	165		144
Charge-offs	—		—
Recoveries	—		—
Ending allowance for loan losses	$	1,053	$	714

As of March 31, 2016 and December 31, 2015, the Company's commercial mortgage loan portfolio comprised 76 and 77 loans, respectively.

	March 31, 2016				December 31, 2015
Loan Type	Par Value		Percentage		Par Value		Percentage
Office	$	312,957	27.5	%	$	307,876	27.2	%
Multifamily	302,436		26.6	%	305,129		26.9	%
Hospitality	172,086		15.1	%	171,752		15.1	%
Retail	159,476		14.0	%	158,784		14.0	%
Mixed Use	136,925		12.1	%	138,798		12.2	%
Industrial	52,313		4.7	%	52,107		4.6	%
	$	1,136,193	100.0	%	$	1,134,446	100.0	%

Credit Characteristics

As part of the Company's process for monitoring the credit quality of its loans, it performs a quarterly loan portfolio assessment and assigns risk ratings to each of its loans. The loans are scored on a scale of 1 to 5 as follows:

Investment Rating	Summary Description
1	Investment exceeding fundamental performance expectations and/or capital gain expected. Trends and risk factors since time of investment are favorable.
2	Performing consistent with expectations and a full return of principal and interest expected. Trends and risk factors are neutral to favorable.
3	Performing investments requiring closer monitoring. Trends and risk factors show some deterioration.
4	Underperforming investment with some loss of interest expected but still expecting a positive return on investment. Trends and risk factors are negative.
5	Underperforming investment with expected loss of interest and some principal.

All commercial mortgage loans are assigned an initial risk rating of 2.0. As of March 31, 2016 and December 31, 2015, the weighted average risk rating of loans was 2.0 and 2.0, respectively. As of March 31, 2016 and December 31, 2015, the Company did not have any loans that were past due on their payments, in non-accrual status or impaired.

For the three months endedMarch 31, 2016 and March 31, 2015, the activity in the Company's loan portfolio was as follows (in thousands):

	Three Months Ended March 31, 2016			Three Months Ended March 31, 2015
Balance at Beginning of Year	$	1,124,201		$	456,884
Acquisitions and originations	9,697			116,434
Dispositions	—			—
Principal repayments	(7,949		)	(14,321		)
Discount accretion and premium amortization*	566			205
Provision for loan losses	(165		)	(144		)
Balance at End of Period	$	1,126,350		$	559,058

________________________

* Includes amortization of capitalized acquisition fees and expenses.

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Real Estate Securities

3 Months Ended

Mar. 31, 2016

Investments, Debt and Equity Securities [Abstract]

Real Estate Securities

Real Estate Securities

The following is a summary of the Company's real estate securities, CMBS (in thousands):

		Weighted Average
	Number of Investments	Interest Rate		Maturity	Par Value		Fair Value
March 31, 2016	16	4.81	%	January 2019	$	132,255	$	124,871
December 31, 2015	16	4.71	%	February 2019	133,183		130,754

The Company classified its CMBS as available-for-sale as of March 31, 2016 and December 31, 2015. These investments are reported at fair value in the balance sheet with changes in fair value recorded in accumulated other comprehensive income or loss. The following table shows the amortized cost, unrealized gains/losses and fair value of the Company's CMBS investments as of March 31, 2016 and December 31, 2015(in thousands):

	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
March 31, 2016	$	132,089	$	8	$	(7,226	)	$	124,871
December 31, 2015	133,008		—		(2,254		)	130,754

As of March 31, 2016, the Company held 16 CMBS positions for an aggregate carrying value of $132.1 million, with an unrealized loss of $7.2 million, of which 7 positions had a total unrealized loss of $0.2 million for a period greater than 12 months.

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Debt

3 Months Ended

Mar. 31, 2016

Debt Disclosure [Abstract]

Debt

Debt

Repurchase Agreements - Commercial Mortgage Loans

The Company entered into repurchase facilities with JPMorgan Chase Bank, National Association (the "JPM Repo Facility") and Barclays Bank PLC (the "Barclays Repo Facility"). The JPM Repo Facility provides up to $150.0 million in advances. The Barclays Repo Facility provides up to $150.0 million in advances. Both, the JPM Repo Facility and Barclays Repo Facility are subject to adjustments. The Company expects to use advances from the JPM Repo Facility and the Barclays Repo Facility to finance the acquisition or origination of eligible loans, including first mortgage loans, subordinated mortgage loans, mezzanine loans and participation interests therein. The initial maturity date of the JPM Repo Facility is June 18, 2016, with a one year extension at the Company’s option, which may be exercised upon the satisfaction of certain conditions. The Company entered into an amendment of the Barclays Repo Facility, dated as of May 12, 2016 (the “Barclays Amendment”), pursuant to which the maturity date of the Barclays Repo Facility was extended to September 6, 2016, and the pricing rate for each purchased asset was increased by 0.50% per annum. There are twosix months extensions remaining under the Barclays Repo Facility, which may be granted by the lender in its sole discretion upon the satisfaction of certain conditions. As of March 31, 2016, the Company is in compliance with all debt covenants.

As of March 31, 2016 and December 31, 2015, the Company had $121.7 million and $84.3 million outstanding under the JPM Repo Facility. Advances under the JPM Repo Facility accrue interest at per annum rates equal to the sum of (i) the applicable LIBOR index rate plus (ii) a margin between 2.25% to 4.5%, depending on the attributes of the purchased assets. As of March 31, 2016 and December 31, 2015, the weighted average interest rate on advances was 2.7% and 3.1%, respectively. The Company incurred $0.8 million and $0.7 million in interest expense on the JPM Repo Facility for the three months ended March 31, 2016 and 2015, respectively.

As of March 31, 2016 and December 31, 2015, the Company had $121.9 million and $121.9 million outstanding under the Barclays Repo Facility. After giving effect to the Barclays Amendment, advances under the Barclays Repo Facility accrue interest at per annum rates equal to the sum of (i) the applicable LIBOR index rate plus (ii) a margin between 2.5% to 3.0%, depending on the attributes of the purchased assets. As of March 31, 2016 and December 31, 2015, the weighted average interest rate on advances was 2.5% and 2.4%, respectively. The Company incurred $0.8 million and $0.5 million of interest expense on the Barclays Repo Facility for the three months ended March 31, 2016 and 2015, respectively.

The JPM Repo Facility and the Barclays Repo Facility generally provide that in the event of a decrease in the value of the Company's collateral, the lenders can demand additional collateral. Should the value of the Company’s collateral decrease, whether as a result of deteriorating credit quality, an increase in credit market spreads or otherwise, resulting margin calls may cause an adverse change in the Company’s liquidity position.

Repurchase Agreements - Real Estate Securities

The Company has entered into various Master Repurchase Agreements (the "MRAs") that allow the Company to sell real estate securities while providing a fixed repurchase price for the same real estate securities in the future. The repurchase contracts on each security under an MRA generally mature in 30 to 90 days and terms are adjusted for current market rates as necessary. Below is a summary of the Company's MRAs as of March 31, 2016 and December 31, 2015 (in thousands):

							Weighted Average
Counterparty	Amount Outstanding		Accrued Interest		Collateral Pledged (*)		Interest Rate		Days to Maturity
As of March 31, 2016
J.P. Morgan Securities LLC	$	90,897	$	159	$	137,487	2.25	%	1
Citigroup Global Markets, Inc.	26,177		81		34,559		2.32	%	44
Wells Fargo Securities, LLC	3,375		3		4,500		1.79	%	13
Total/Weighted Average	$	120,449	$	243	$	176,546	2.25	%	11
As of December 31, 2015
J.P. Morgan Securities LLC	$	86,898	$	108	$	130,618	2.03	%	8
Citigroup Global Markets, Inc.	26,619		71		35,528		2.00	%	45
Wells Fargo Securities, LLC	3,694		3		4,925		1.67	%	13
Total/Weighted Average	$	117,211	$	182	$	171,071	2.01	%	17

* Includes $52,962 and $56,044 Tranche C of RFT issued CLO held by the Company, which eliminates within the Real estate securities, at fair value line of the consolidated balance sheets as of March 31, 2016 and December 31, 2015, respectively.

Collateralized Loan Obligation

On October 19, 2015, RFT 2015-FL1 Issuer, Ltd. (the “Issuer”) and RFT 2015-FL1 Co-Issuer, LLC (the “Co-Issuer”), both wholly owned indirect subsidiaries of the Company, entered into an indenture with the RFT OP, as advancing agent, U.S. Bank National Association as note administrator and U.S. Bank National Association as trustee, which governs the issuance of approximately $350.2 million principal balance secured floating rate notes (the “Notes”). In addition, concurrently with the issuance of the Notes, the Issuer also issued 78,188,494 Preferred Shares, par value of $0.001 per share and with an aggregate liquidation preference and notional amount equal to $1,000 per share (the “Preferred Shares”), which were not offered as part of closing the indenture. For U.S. federal income tax purposes, the Issuer and Co-Issuer are disregarded entities.

The Notes are collateralized by interests in a pool of 28 mortgage assets having a total principal balance of $428.4 million (the “Mortgage Assets”) originated by a subsidiary of the Company. The sale of the Mortgage Assets to the Issuer is governed by a Mortgage Asset Purchase Agreement dated as of October 19, 2015, between the Company and the Issuer. In connection with the securitization, the Issuer and Co-Issuer offered and sold the following classes of Notes to third parties: Class A, Class B, Class C. A wholly owned subsidiary of the Company retained approximately $56.0 million of the total $76.0 million of Class C and all of the preferred equity in the Issuer. The retained Class C and its related interest income and the preferred equity are eliminated in the Company's consolidated financial statements. The Company, as the holder of preferred equity in the Issuer, will absorb the first losses of the CLO, which may have a negative impact to the Company's result of operations. The issuance of the CLO also results in an increase in interest expense within the consolidated statement of operations due to increased interest expense. The following table represents the terms of the CLO issued.

Facility ($000s)	Par Value Issued		Par Value Outstanding (*)		Interest Rate	Maturity Date
As of March 31, 2016
Tranche A	$	231,345	$	231,345	1M LIBOR + 175	8/1/2030
Tranche B	42,841		42,841		1M LIBOR + 388	8/1/2030
Tranche C	76,044		20,000		1M LIBOR + 525	8/1/2030
	$	350,230	$	294,186
As of December 31, 2015
Tranche A	$	231,345	$	231,345	1M LIBOR + 175	8/1/2030
Tranche B	42,841		42,841		1M LIBOR + 388	8/1/2030
Tranche C	76,044		20,000		1M LIBOR + 525	8/1/2030
	$	350,230	$	294,186

________________________

* Excludes $52,962 and $56,044 of Tranche C of RFT issued CLO held by the Company, which eliminates within the Real estate securities, at fair value line of the consolidated balance sheets as of March 31, 2016 and December 31, 2015, respectively.

The below represents the total assets and liabilities of the Company's only CLO. The CLO is considered a VIE and is consolidated into the Company's consolidated financial statements as of March 31, 2016 and December 31, 2015 as the Company is the primary beneficiary of the VIE. The Company is the primary beneficiary of the CLO because (i) the Company has the power to direct the activities that most significantly affect the VIE’s economic performance and (ii) the right to receive benefits from the VIE or the obligation to absorb losses of the VIE that could be significant to the VIE.

Assets ($000s)	March 31, 2016		December 31, 2015
Cash	$	5	$	5
Commercial mortgage loans, held for investment, net	426,447		426,155
Accrued interest receivable	1,076		1,048
Total Assets	$	427,528	$	427,208
Liabilities
Notes payable (1)(2)	$	343,096	$	342,998
Accrued interest payable	530		513
Total Liabilities	$	343,626	$	343,511

________________________

⁽¹⁾ Includes $55,776 and $55,769 of Tranche C of RFT issued CLO held by the Company, which eliminates within the Collateral loan obligations line of the consolidated balance sheets as of March 31, 2016 and December 31, 2015, respectively.

⁽²⁾ The balance is presented net of deferred financing cost and discount of $7,134 and $7,232 as of March 31, 2016 and December 31, 2015, respectively. The notes payable balance as of December 31, 2015 of $348,269 as disclosed in Note 5 to the consolidated financial statements included in the 2015 Form 10-K was not net of deferred financing cost of $5,271.

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Net Income Per Share

3 Months Ended

Mar. 31, 2016

Earnings Per Share [Abstract]

Net Income Per Share

Net Income Per Share

The following table is a summary of the basic and diluted net income per share computation for the three months ended March 31, 2016 and 2015, respectively:

	Three Months Ended March 31,
	2016		2015
Net income (in thousands)	$	9,420	$	4,632
Basic weighted average shares outstanding	31,548,897		17,279,713
Unvested restricted shares	6,114		4,373
Diluted weighted average shares outstanding	31,555,011		17,284,086
Basic net income per share	$	0.30	$	0.27
Diluted net income per share	$	0.30	$	0.27

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Common Stock

3 Months Ended

Mar. 31, 2016

Equity [Abstract]

Common Stock

Common Stock

As of March 31, 2016 and December 31, 2015, the Company had 31,645,633 and 31,385,280 shares of common stock outstanding, respectively, including shares issued pursuant to the DRIP and unvested restricted shares. As of March 31, 2016 and December 31, 2015, the Company had received total proceeds of $755.5 million and $755.5 million, respectively, excluding shares issued pursuant to the DRIP and share-based compensation.

On December 30, 2014, the Company filed with the Maryland State Department of Assessments and Taxation articles supplementary to its charter that reclassified 1,000 authorized but unissued shares of the Company’s common stock as shares of convertible stock and set the terms of such convertible shares. The Company then issued 1,000 convertible shares to the Advisor for $1.00 per share. The convertible shares will automatically convert to shares of common stock upon the first occurrence of any of following triggering events (the "Triggering Event"): (i) the Company has paid total distributions on the then-outstanding shares of common stock in an amount equal to or in excess of the sum of the invested capital (as defined in the Company’s charter) plus an aggregate 6.0% cumulative, pre-tax, non-compounded, annual return on such invested capital, (ii) a listing of the Company’s shares of common stock on a national securities exchange or (iii) the termination of the Company’s advisory agreement under certain circumstances. In general, but with certain exceptions as outlined in the articles supplementary, each convertible share will convert into a number of common shares equal to 1/1000 of the quotient of (a) the conversion product (the product of 0.15 times the amount, if any, by which (i) the sum of the enterprise value as of the date of the Triggering Event plus total distributions paid to the Company’s stockholders through the date of the Triggering Event exceeds (ii) the sum of the Company's stockholders’ invested capital plus a 6.0% return as of the date of the Triggering Event) divided by (b) the quotient of the enterprise value divided by the number of shares of the Company’s common stock outstanding (on an as-converted basis) on the date of the Triggering Event. The conversion product will be reduced by the amounts payable pursuant to the annual subordinated performance fee as realized appreciation in the Company’s assets during the time that the Advisor or one of its affiliates acts as the Company’s advisor. As of March 31, 2016, the Triggering Event had not occurred.

Distributions

In order to maintain its election to qualify as a REIT, the Company must currently distribute, at a minimum, an amount equal to 90% of its taxable income, without regard to the deduction for distributions paid and excluding net capital gains. The Company must distribute 100% of its taxable income (including net capital gains) to avoid paying corporate federal income taxes.

In May 2013, the Company's board of directors authorized, and the Company declared, a distribution payable on a monthly basis to stockholders of record on each day at a rate equal to $0.00565068493 per day, which is equivalent to $2.0625 per annum, per share of common stock . In March 2016, the Company's board of directors ratified the existing distribution amount a change to the daily distribution amount equivalent to $2.0625 per annum and for calendar year 2016, affirmed a change to the daily distribution amount to $0.0056352459 per day per share of common stock, effective January 1, 2016, to accurately reflect that 2016 is a leap year. The Company's distributions are payable by the fifth day following each month end to stockholders of record at the close of business each day during the prior month. Distribution payments are dependent on the availability of funds. The Board may reduce the amount of distributions paid or suspend distribution payments at any time, and therefore, distributions payments are not assured. The Company distributed $16.2 million during the three months endedMarch 31, 2016, comprised of $9.6 million in cash and $6.6 million in shares of common stock issued under the DRIP. The Company distributed $47.1 million during the year ended December 31, 2015, comprised of $26.9 million in cash and $20.2 million in shares of common stock issued under the DRIP.

Share Repurchase Program

The Company did not sell any equity securities that were not registered under the Securities Act during the three months endedMarch 31, 2016.

The Company's Board unanimously approved an amended and restated share repurchase program (the “SRP”), which became effective on February 28, 2016. The SRP enables stockholders to sell their shares to the Company. Subject to certain conditions, stockholders that purchased shares of the Company's common stock or received their shares from us (directly or indirectly) through one or more non-cash transactions and have held their shares for a period of at least one year may request that the Company repurchase their shares of common stock so long as the repurchase otherwise complies with the provisions of Maryland law. Repurchase requests made following the death or qualifying disability of a stockholder will not be subject to any minimum holding period.

The repurchase price per share for requests other than for death or disability will be equal to the most-recent estimated net asset value per share of the Company's common stock calculated by the Company's Advisor and approved by the Company's board of directors in accordance with the Company's valuation guidelines, or estimated per-share NAV, multiplied by a percentage equal to (i) 92.5%, if the person seeking repurchase has held his or her shares for a period greater than one year and less than two years; (ii) 95%, if the person seeking repurchase has held his or her shares for a period greater than two years and less than three years; (iii) 97.5%, if the person seeking repurchase has held his or her shares for a period greater than three years and less than four years; or (iv) 100%, if the person seeking repurchase has held his or her shares for a period greater than four years. In the case of requests for death or disability, the repurchase price per share will be equal to the estimated per-share NAV at the time of repurchase.

Repurchases pursuant to the SRP, when requested, generally will be made semiannually (each six-month period ending June 30 or December 31, a “fiscal semester”). Repurchases for any fiscal semester will be limited to a maximum of 2.5% of the weighted average number of shares of common stock outstanding during the previous fiscal year, with a maximum for any fiscal year of 5.0% of the weighted average number of shares of common stock outstanding during the previous fiscal year. Funding for repurchases pursuant to the SRP for any given fiscal semester will be limited to proceeds received during that same fiscal semester through the issuance of common stock pursuant to any DRIP in effect from time to time, provided that the Board has the power, in its sole discretion, to determine the amount of shares repurchased during any fiscal semester as well as the amount of funds to be used for that purpose. Any repurchase requests received during such fiscal semester will be paid at a price based on the Company's estimated per share NAV applicable on the last day of such fiscal semester, as described above. Due to these limitations, the Company cannot guarantee that the Company will be able to accommodate all repurchase requests made during any fiscal semester or fiscal year. However, a stockholder may withdraw its request at any time or ask that the Company honors the request when funds are available. Pending repurchase requests will be honored on a pro rata basis. The Company will generally pay repurchase proceeds, less any applicable tax or other withholding required by law, by the 31st day following the end of the fiscal semester during which the repurchase request was made.

Calculations of the Company's estimated per-share NAV will occur periodically, at the discretion of the Board, provided that such calculations will be made at least annually. Following its calculation, the Company's estimated per-share NAV will be disclosed in a periodic report. The most recent calculation of the Company's estimated per-share NAV approved by the Board occurred on November 4, 2015 based on the Company's net asset value as of September 30, 2015 and was equal to $25.27.

When a stockholder requests redemption and the redemption is approved, the Company will reclassify such obligation from equity to a liability based on the settlement value of the obligation. Shares repurchased under the SRP will have the status of authorized but unissued shares.

The following table reflects the number of shares repurchased under the SRP cumulatively through March 31, 2016:

	Number of Requests	Number of Shares Repurchased	Average Price per Share
Cumulative as of December 31, 2015	301	381,474	23.72
January 1 - January 31, 2016	—	—	—
February 1 - February 29, 2016	—	—	—
March 1 - March 31, 2016	—	—	—
Cumulative as of March 31, 2016	301	381,474	23.72

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Commitments and Contingencies

3 Months Ended

Mar. 31, 2016

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

Unfunded Commitments Under Commercial Mortgage Loans

As of March 31, 2016 and December 31, 2015, the Company had the below unfunded commitments which will generally be funded to finance capital expenditures by the Company's borrowers.

Funding Expiration	March 31, 2016		December 31, 2015
2016	$	468	$	890
2017	13,052		16,072
2018	99,079		104,428
2019	16,032		16,939
2020	—		—
2021	—		—
Total	$	128,631	$	138,329

Litigation and Regulatory Matters

In the ordinary course of business, the Company may become subject to litigation, claims and regulatory matters. The Company has no knowledge of material legal or regulatory proceedings pending or known to be contemplated against the Company at this time.

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Related Party Transactions and Arrangements

3 Months Ended

Mar. 31, 2016

Related Party Transactions [Abstract]

Related Party Transactions and Arrangements

Related Party Transactions and Arrangements

As of March 31, 2016 and December 31, 2015, an entity wholly-owned by the Sponsor owned 8,888 shares of the Company’s outstanding common stock.

Realty Capital Securities, LLC (the "Former Dealer Manager") served as the dealer manager of the Company's Offering through December 31, 2015.  American National Stock Transfer, LLC, a subsidiary of the parent company of the Former Dealer Manager ("ANST"), provided the Company with transfer agency services through February 2016. RCS Capital Corporation, the parent company of the Company's Former Dealer Manager and certain of its affiliates that provided the Company with services, filed for Chapter 11 bankruptcy protection in January 2016, prior to which it was also under common control with AR Global, the parent of the Company's Sponsor.

Fees Paid in Connection with the Offering

The Former Dealer Manager received fees and compensation in connection with the sale of the Company’s common stock in the Offering. The Former Dealer Manager received a selling commission of up to 7% of the per share purchase price of the Company's offering proceeds before reallowance of commissions earned by soliciting dealers. In addition, the Former Dealer Manager received up to 3% of the gross proceeds from the sale of shares, before reallowance to soliciting dealers, as a dealer manager fee. The Former Dealer Manager was permitted to reallow its dealer manager fee to such soliciting dealers. A soliciting dealer was permitted to elect to receive a fee equal to 7.5% of the gross proceeds from the sale of shares (not including selling commissions and dealer manager fees) by such soliciting dealer, with 2.5% thereof paid at the time of such sale and 1% thereof paid on each anniversary of the closing of such sale up to and including the fifth anniversary of the closing of such sale. If this option was elected, the dealer manager fee was reduced to 2.5% of gross proceeds (not including selling commissions and Former Dealer Manager fees).

The predecessor to AR Global is a party to a services agreement with RCS Advisory Services, LLC, a subsidiary of the parent company of the Former Dealer Manager (“RCS Advisory”), pursuant to which RCS Advisory and its affiliates provided the Company and certain other companies sponsored by AR Global with services (including, without limitation, transaction management, compliance, due diligence, event coordination and marketing services, among others) on a time and expenses incurred basis or at a flat rate based on services performed. The predecessor to AR Global instructed RCS Advisory to stop providing such services in November 2015 and no services have since been provided by RCS Advisory.

The Company was also party to a transfer agency agreement with American National Stock Transfer, LLC, a subsidiary of the parent company of the Former Dealer Manager (“ANST”), pursuant to which ANST provided the Company with transfer agency services (including broker and stockholder servicing, transaction processing, year-end IRS reporting and other services), and supervisory services overseeing the transfer agency services performed by a third-party transfer agent. AR Global received written notice from ANST on February 10, 2016 that it would wind down operations by the end of the month and would withdraw as the transfer agent effective February 29, 2016. Subsequently, effective February 26, 2016, the Company entered into a definitive agreement with DST Systems, Inc., a third-party and its previous provider of sub-transfer agency services, to  provide the Company directly with transfer agency services (including broker and stockholder servicing, transaction processing, year-end IRS reporting and other services).

The table below shows the compensation and reimbursement to the Advisor, its affiliates, entities under common control with the Advisor and the Former Dealer Manager incurred for services relating to the Offering during the three months ended March 31, 2016 and 2015, respectively, and the associated payable as of March 31, 2016 and December 31, 2015, respectively (in thousands):

	Three Months Ended March 31,				Payable as of
	2016		2015		March 31, 2016		December 31, 2015
Total commissions and fees incurred from the Former Dealer Manager	$	—	$	9,247	$	—	$	—
Total compensation and reimbursement for services provided by the Advisor, its affiliates, entities under common control with the Advisor and the Former Dealer Manager	$	—	$	1,962	$	472	$	480

The payables as of March 31, 2016 and December 31, 2015 in the table above are included in "Due to affiliates" on the Company's consolidated balance sheets. The fees incurred are recorded within additional paid in capital line in the consolidated balance sheets.

The Company is responsible for organizational and offering costs from the ongoing Offering, excluding commissions and Former Dealer Manager fees, up to a maximum of 2.0% of gross proceeds from its ongoing Offering of common stock, measured at the end of the Offering. Organizational and offering costs in excess of the 2.0% cap as of the end of the Offering are the Advisor's responsibility. As of March 31, 2016 and December 31, 2015, organizational and offering costs exceeded 2.0% of cap of gross proceeds received from the Offering by $0.8 million and $0.8 million, respectively which has been recorded in Additional Paid-In Capital of the Company's financial statements as the Advisor has not reimbursed the Company for these costs.

Fees Paid in Connection with the Operations of the Company

The Advisor receives an acquisition fee of 1.0% of the principal amount funded by the Company to originate or acquire commercial mortgage loans and 1.0% of the anticipated net equity funded by the Company to acquire real estate securities. The Company reimburses the Advisor for expenses incurred by the Advisor on behalf of the Company related to selecting, evaluating, originating and acquiring investments in an amount up to 0.5% of the principal amount funded by the Company to originate or acquire commercial mortgage loans and up to 0.5% of the anticipated net equity funded by the Company to acquire real estate securities investments. In no event will the total of all acquisition fees and acquisition expenses exceed 4.5% of the principal amount funded with respect to the Company's total portfolio including subsequent fundings to investments in the Company's portfolio. During the three months endedMarch 31, 2016 and 2015, acquisition fees of $0.2 million and $1.0 million, respectively, have been recognized in the Acquisition fees within the consolidated statement of operations. In addition, for the three months ended March 31, 2015 the Company capitalized $0.7 million, of acquisition expenses in Commercial mortgage loans line within the Company's consolidated balance sheets, which will be amortized over the life of each investment using the effective interest method. The Company did not capitalize any acquisitions expenses for the three months ended March 31, 2016.

The Company pays the Advisor, or its affiliates, a monthly asset management fee equal to one-twelfth of 0.75% of the cost of the Company's assets. Commencing on the NAV pricing date, the asset management fee is based on the lower of the cost of the Company's assets and the fair value of the Company's assets (fair value will consist of the market value of each portfolio investment as determined by the Advisor in accordance with the Company's valuation guidelines). During the three months endedMarch 31, 2016 and 2015, the Company incurred $2.4 million and $0 in asset management fees, respectively, which are recorded in Asset management and subordinated performance fee within the statement of operations. Prior to June 17, 2015, the amount of the asset management fee was reduced to the extent that funds from operations as defined by the National Association of Real Estate Investment Trusts ("FFO"), as adjusted, during the six month period ending on the last day of the calendar quarter immediately preceding the date such asset management fee was payable, was less than distributions declared during the same period. For purposes of this determination, FFO, as adjusted, is FFO adjusted to (i) include acquisition fees and acquisition expenses; (ii) include non-cash restricted stock grant amortization, if any; and (iii) impairments and loan loss reserves on investments, if any (including commercial mortgage loans and other debt investments). FFO, as adjusted, is not the same as FFO.

The Company will pay the Advisor, an annual subordinated performance fee calculated on the basis of total return to stockholders, payable monthly in arrears, such that for any year in which total return on stockholders’ capital exceeds 6.0% per annum, the Advisor will be entitled to 15.0% of the excess total return; provided that in no event will the annual subordinated performance fee payable to the Advisor exceed 10.0% of the aggregate total return for such year. This fee will be payable only upon the sale of assets, distributions or other events which result in the Company's return on stockholders’ capital exceeding 6.0% per annum. During the three months endedMarch 31, 2016 and 2015, the Company incurred an annual subordinated performance fee of $0.6 million and $0.4 million, respectively, which are recorded in Asset management and subordinated performance fee within the statement of operations.

Effective June 1, 2013, the Company entered into an agreement with the Former Dealer Manager to provide strategic advisory services and investment banking services required in the ordinary course of the Company's business, such as performing financial analysis, evaluating publicly traded comparable companies and assisting in developing a portfolio composition strategy, a capitalization structure to optimize future liquidity options and structuring operations. The Company prepaid the cost of an one-time $0.9 million associated with this agreement and amortizes the cost over the estimated life of the Offering into Other expenses on the Company's consolidated statements of operations. For period ending December 31, 2015, the Company had approximately $6,000 of unamortized cost. There was no remaining unamortized cost as of March 31, 2016 and these services are no longer being provided.

The table below depicts related party fees and reimbursements in connection with the operations of the Company for the three months endedMarch 31, 2016 and 2015 and the associated payable as of March 31, 2016 and December 31, 2015 (in thousands):

	Three Months Ended March 31,					Payable as of
	2016			2015		March 31, 2016		December 31, 2015
Acquisition fees and expense and others (*)	$	157		$	1,781	$	—	$	55
Administrative services and expenses	816		—	—		187		—
Advisory and investment banking fee	6			14		—		—
Asset management and subordinated performance fee	3,010			362		3,683		3,792
Other related party expenses	26			21		61		—
Total related party fees and reimbursements	$	4,015		$	2,178	$	3,931	$	3,847

________________________

* Includes amortization of capitalized acquisition fees and expenses.

The payables as of March 31, 2016 and December 31, 2015 in the table above are included in "Due to affiliates" on the Company's consolidated balance sheets.

In order to improve operating cash flows and the ability to pay distributions from operating cash flows, the Advisor may elect to waive certain fees. Because the Advisor may waive certain fees, cash flows from operations that would have been paid to the Advisor may be available to pay distributions to stockholders. The fees that may be forgiven are not deferrals and accordingly, will not be paid to the Advisor. The Advisor has also permanently waived a portion of the acquisition fees and expenses earned on the acquisition of the Company's CMBS in the amount of $0.1 million for the three months endedMarch 31, 2015. The Company did not purchase any CMBS positions during the three months ended March 31, 2016 as such did not incur any acquisition fees and expenses for CMBS purchases.

Subject to the limitations outlined below, the Company will reimburse the Advisor's cost of providing administrative services and personnel costs in connection with other services during the operational stage, in addition to paying an asset management fee; however, the Company will not reimburse the Advisor for personnel costs in connection with services for which the Advisor receives acquisition fees or disposition fees. For the three months endedMarch 31, 2016, the Company reimbursed the Advisor $0.8 million of administrative costs in connection with the operations of the Company. The Company did not incur such expense for the three months ended March 31, 2015.

The Advisor must pay any expenses in which the Company's operating expenses as defined by North American Securities Administrators Association at the end of the four preceding fiscal quarters exceeds the greater of (i) 2.0% of average invested assets or (ii) 25.0% of net income for such expense year.

Fees Paid in Connection with the Liquidation of Assets, or Listing of the Company's Common Stock or Termination of the Advisory Agreement

The Company will pay a disposition fee of 1.0% of the contract sales price of each commercial mortgage loan or other investment sold, including CMBS or CDOs issued by a subsidiary of the Company as part of a securitization transaction. The Company will not be obligated to pay a disposition fee upon the maturity, prepayment, workout, modification or extension of commercial real estate debt unless there is a corresponding fee paid by the borrower, in which case the disposition fee will be the lesser of (i) 1.0% of the principal amount of the debt prior to such transaction; or (ii) the amount of the fee paid by the borrower in connection with such transaction. If the Company takes ownership of a property as a result of a workout or foreclosure of a loan, it will pay a disposition fee upon the sale of such property.

On December 30, 2014, the Company issued 1,000 convertible shares to the Advisor for $1.00 per share. The convertible shares issued to the Advisor will automatically convert to shares of the Company’s common stock upon the first to occur of any of the Triggering Events described in Note 7.

During the three months endedMarch 31, 2016 and 2015, no fees were paid in connection with the liquidation of assets, listing of the Company's common stock or termination of the advisory agreement.

The Company has also established a restricted share plan for the benefit of employees, directors, employees of the Advisor and its affiliates.

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Fair Value of Financial Instruments

3 Months Ended

Mar. 31, 2016

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments

Fair Value of Financial Instruments

GAAP establishes a hierarchy of valuation techniques based on the observability of inputs used in measuring financial instruments at fair values. GAAP establishes market-based or observable inputs as the preferred source of values, followed by valuation models using management assumptions in the absence of market inputs. The three levels of the hierarchy are described below:

• Level I - Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date.

• Level II - Inputs (other than quoted prices included in Level I) are either directly or indirectly observable for the asset or liability through correlation with market data at the measurement date and for the duration of the instrument’s anticipated life.

• Level III - Inputs reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. Consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs to the model.

The determination of where an asset or liability falls in the above hierarchy requires significant judgment and factors specific to the asset or liability. In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. The Company evaluates its hierarchy disclosures each quarter and depending on various factors, it is possible that an asset or liability may be classified differently from quarter to quarter.

The Company has implemented valuation control processes to validate the fair value of the Company's financial instruments measured at fair value including those derived from pricing models. These control processes are designed to assure that the values used for financial reporting are based on observable inputs wherever possible. In the event that observable inputs are not available, the control processes are designed to assure that the valuation approach utilized is appropriate and consistently applied and the assumptions are reasonable.

CMBS are valued utilizing both observable and unobservable market inputs. These factors include projected future cash flows, ratings, subordination levels, vintage, remaining lives, credit issues, recent trades of similar real estate securities and the spreads used in the prior valuation. The Company obtains current market spread information where available and uses this information in evaluating and validating the market price of all real CMBS. Depending upon the significance of the fair value inputs used in determining these fair values, these real estate securities are classified in either Level II or Level III of the fair value hierarchy. As of March 31, 2016 and December 31, 2015, the Company received broker quotes on each CMBS investment used in determining the fair value and have been classified as Level II due to the observable nature of many of the market inputs.

The following table presents the Company's financial instrument carried at fair value on a recurring basis in the consolidated balance sheet by its level in the fair value hierarchy as of March 31, 2016 and December 31, 2015 (in thousands):

	Total		Level I		Level II		Level III
March 31, 2016
Real estate securities	$	124,871	$	—	$	124,871	$	—
December 31, 2015
Real estate securities	130,754		—		130,754		—

A review of the fair value hierarchy classification is conducted on a quarterly basis. Changes in the type of inputs may result in a reclassification for certain assets. The Company's policy with respect to transfers between levels of the fair value hierarchy is to recognize transfers into and out of each level as of the beginning of the reporting period. There were no transfers between levels within fair value hierarchy during the three months endedMarch 31, 2016 and 2015. There are no financial instruments carried at fair value on a non-recurring basis as of March 31, 2016 and December 31, 2015.

The fair value of cash and cash equivalents and restricted cash are measured using observable quoted market prices, or Level I inputs. The fair value of short-term financial instruments, such as accrued interest receivable, prepaid expenses and other assets, accounts payable and accrued expenses, distributions payable, interest payable, borrowings under repurchase agreements and due to affiliate approximate their carrying value on the consolidated balance sheets due to their short-term nature, and are measured using Level II inputs.

The fair values of the Company's commercial mortgage loans and collateralized loan obligations, which are not reported at fair value on the consolidated balance sheets are reported below as of March 31, 2016 and December 31, 2015 (in thousands):

		Level	Carrying Amount		Fair Value
March 31, 2016
Commercial mortgage loans	Asset	III	$	1,127,403	$	1,133,935
Collateralized loan obligation	Liability	II	287,320		289,080
December 31, 2015
Commercial mortgage loans	Asset	III	1,125,089		1,138,841
Collateralized loan obligation	Liability	II	287,229		289,733

The fair value of the commercial mortgage loans is estimated using a discounted cash flow analysis, based on the Advisor's experience with similar types of investments. The Company received broker quotes for each tranche of CLO to determine the fair value of the debt.

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Offsetting Assets and Liabilities

3 Months Ended

Mar. 31, 2016

Offsetting [Abstract]

Offsetting Assets and Liabilities

Offsetting Assets and Liabilities

The Company's consolidated balance sheets used a gross presentation of repurchase agreements and collateral pledged. The table below provides a gross presentation, the effects of offsetting and a net presentation of the Company's repurchase agreements within the scope of ASC 210-20, Balance Sheet—Offsetting, as of March 31, 2016 and December 31, 2015, respectively (in thousands):

							Gross Amounts Not Offset on the Balance Sheet
Repurchase Agreements	Gross Amounts of Recognized Liabilities		Gross Amounts Offset on the Balance Sheet		Net Amount of Liabilities Presented on the Balance Sheet		Financial Instruments as Collateral Pledged		Cash Collateral Pledged		Net Amount
March 31, 2016
Commercial mortgage loans	$	243,583	$	—	$	243,583	$	377,231	$	5,000	$	—
Real estate securities (*)	120,449		—		120,449		179,628		1,498		—
December 31, 2015
Commercial mortgage loans	206,239		—		206,239		355,802		5,000		—
Real estate securities (*)	117,211		—		117,211		171,071		366		—

* Includes $56,044 and $56,044 Tranche C of RFT issued CLO held by the Company, which eliminates within the Repurchase agreement-real estate securities line of the consolidated balance sheets as of March 31, 2016 and December 31, 2015, respectively.

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Segment Reporting

3 Months Ended

Mar. 31, 2016

Segment Reporting [Abstract]

Segment Reporting

Segment Reporting

The Company conducts its business through the following segments:

• The real estate debt business focuses on originating, acquiring and asset managing commercial real estate debt investments, including first mortgage loans, subordinate mortgages, mezzanine loans and participations in such loans.

• The real estate securities business focuses on investing in and asset managing commercial real estate securities primarily consisting of CMBS and may include unsecured REIT debt, CDO notes and other securities.

The following table represents the Company's operations by segment for the three months endedMarch 31, 2016 and 2015 (in thousands):

Three Months Ended March 31, 2016	Total		Real Estate Debt		Real Estate Securities
Interest income	$	20,291	$	18,676	$	1,615
Interest expense	4,768		4,091		677
Net income	9,420		9,059		361
Three Months Ended March 31, 2015
Interest income	9,605		9,196		409
Interest expense	1,933		1,804		129
Net income	4,632		4,546		86

The following table represents the Company's total assets by segment as of March 31, 2016 and December 31, 2015 (in thousands):

As of March 31, 2016	Total		Real Estate Debt		Real Estate Securities
Total Assets	$	1,312,738	$	1,186,001	$	126,737
As of December 31, 2015
Total Assets	1,282,484		1,150,858		131,626

For the purposes of the table above, any expenses not associated with a specific segment have been allocated to the business segments using a percentage derived by using the sum of commercial mortgage loans, net and real estate securities, at fair value as the denominator and commercial mortgage loans, net and real estate securities, at fair value as the numerators.

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Subsequent Events

3 Months Ended

Mar. 31, 2016

Subsequent Events [Abstract]

Subsequent Events

Subsequent Events

The Company has evaluated subsequent events through the filing of this Quarterly Report on Form 10-Q and determined that there have not been any events that have occurred that would require adjustments to disclosures in the consolidated financial statements except for the following transactions:

Distributions Paid

On April 1, 2016, the Company paid a distribution of $5.5 million to stockholders of record during the month of March 2016. The Company paid $3.3 million of the distribution in cash, while $2.2 million was used to purchase 86,595 shares through the DRIP.

Formation of Special Committee

On May 6, 2016, the Company announced that the Company’s Board, with the unanimous agreement of all directors, had recently formed a special committee, consisting exclusively of independent directors, to explore a potential strategic transaction with a related party. The Board granted the special committee the exclusive authority to consider, review, evaluate and, if appropriate, negotiate a strategic transaction on behalf of the Company. In addition, the Board granted the special committee the authority, when considering such strategic transaction, to solicit expressions of interest or other proposals for, and to consider, any alternative transactions. These transactions may include a possible sale or merger with one or more related or unrelated entities, listing the Company’s shares on a national exchange or the sale of assets.

The special committee has retained special legal counsel and is in the process of engaging a leading real estate investment banking group as financial advisor. To date, the special committee has not engaged in any substantive discussions or negotiations related to the terms of a transaction with this related party or any other party. In addition, there has not been any exchange of information or any entry into non-disclosure agreements with any party. There are no assurances that the consideration of any strategic alternative will result in a transaction. The Company does not intend to comment on or disclose developments regarding the process unless it deems further disclosure is appropriate or required.

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Summary of Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2016

Accounting Policies [Abstract]

Basis of Accounting

Basis of Accounting

The accompanying consolidated financial statements and related footnotes are unaudited and have been prepared on the accrual basis of accounting in conformity with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial statements and pursuant to the requirements for reporting on Form 10-Q and Regulation S-X, as appropriate. Accordingly, the consolidated financial statements may not include all of the information and notes required by GAAP for annual consolidated financial statements. GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the reported periods. Changes in the economic environment, financial markets and any other parameters used in determining these estimates could cause actual results to differ materially. In the opinion of management, the interim data includes all adjustments, of a normal and recurring nature, necessary for a fair statement of the results for the periods presented. The current period’s results of operations will not necessarily be indicative of results that ultimately may be achieved for the entire year or any subsequent interim periods.

These financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto as of, and for the year ended December 31, 2015, which are included in the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission ("SEC") on March 11, 2016. There have been no significant changes to the Company's significant accounting policies during the three months ended March 31, 2016, other than the updates described below.

Principles of Consolidation

Principles of Consolidation

The Company consolidate all entities that the Company control through either majority ownership or voting rights. In addition, the Company consolidates all variable interest entities ("VIE") of which the Company is considered the primarily beneficiary. VIEs are defined as entities in which equity investors (i) do not have the characteristics of a controlling financial interest and/or (ii) do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties. The entity that consolidates a VIE is known as its primary beneficiary and is generally the entity with (i) the power to direct the activities that most significantly affect the VIE’s economic performance and (ii) the right to receive benefits from the VIE or the obligation to absorb losses of the VIE that could be significant to the VIE.

The accompanying consolidated financial statements include the accounts of the Company, its wholly owned subsidiary, Realty Finance Operating Partnership, L.P. (the "OP") and its subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation.In determining whether the Company has a controlling financial interest in a joint venture and the requirement to consolidate the accounts of that entity, management considers factors such as ownership interest, authority to make decisions and contractual and substantive participating rights of the other partners or members as well as whether the entity is a variable interest entity ("VIE") for which the Company is the primary beneficiary. The Company has determined the OP is a VIE of which the Company is the primary beneficiary. Substantially all of the Company's assets and liabilities are held by the OP.

The accompanying consolidated financial statements include the accounts of a collateralized loan obligation ("CLO") issued and securitized by a wholly owned subsidiary of the Company. The Company has determined the CLO is a VIE of which the Company's subsidiary is the primary beneficiary. The Company has disclosed the assets and liabilities of the CLO on the face of the balance sheet in accordance with ASC 810 - Consolidation.

Allowance for Loan Losses

Allowance for Loan Losses

The allowance for loan losses reflects management's estimate of loan losses inherent in the loan portfolio as of the balance sheet date. The reserve is increased through the loan loss provision on the Company's consolidated statement of operations and is decreased by charge-offs when losses are confirmed through the receipt of assets, such as cash in a pre-foreclosure sale or upon ownership control of the underlying collateral in full satisfaction of the loan upon foreclosure or when significant collection efforts have ceased. The Company uses a uniform process for determining its allowance for loan losses. The allowance for loan losses includes a general, formula-based component and an asset-specific component.

General reserves are recorded when (i) available information as of each balance sheet date indicates that it is probable a loss has occurred in the portfolio and (ii) the amount of the loss can be reasonably estimated. The Company currently estimates loss rates based on historical realized losses experienced in the industry and takes into account current collateral and economic conditions affecting the probability and severity of losses when establishing the allowance for loan losses. The Company performs a comprehensive analysis of its loan portfolio and assigns risk ratings to loans that incorporate management's current judgments about their credit quality based on all known and relevant internal and external factors that may affect collectability. The Company considers, among other things, payment status, lien position, borrower financial resources and investment in collateral, collateral type, project economics and geographic location as well as national and regional economic factors. This methodology results in loans being segmented by risk classification into risk rating categories that are associated with estimated probabilities of default and principal loss. Ratings range from "1" to "5" with "1" representing the lowest risk of loss and "5" representing the highest risk of loss.

The asset-specific reserve component relates to reserves for losses on individual impaired loans. The Company considers a loan to be impaired when, based upon current information and events, it believes that it is probable that the Company will be unable to collect all amounts due under the contractual terms of the loan agreement. This assessment is made on an individual loan basis each quarter based on such factors as payment status, lien position, borrower financial resources and investment in collateral, collateral type, project economics and geographical location as well as national and regional economic factors. A reserve is established for an impaired loan when the present value of payments expected to be received, observable market prices or the estimated fair value of the collateral (for loans that are dependent on the collateral for repayment) is lower than the carrying value of that loan.

For collateral dependent impaired loans, impairment is measured using the estimated fair value of collateral less the estimated cost to sell. Valuations are performed or obtained at the time a loan is determined to be impaired and designated non-performing, and they are updated if circumstances indicate that a significant change in value has occurred. The Advisor generally will use the income approach through internally developed valuation models to estimate the fair value of the collateral for such loans. In more limited cases, the Advisor will obtain external "as is" appraisals for loan collateral, generally when third party participations exist.

A loan is also considered impaired if its terms are modified in a troubled debt restructuring ("TDR"). A TDR occurs when a concession is granted and the debtor is experiencing financial difficulties. Impairments on TDR loans are generally measured based on the present value of expected future cash flows discounted at the effective interest rate of the original loans.

The Company designates non-performing loans at such time as (i) loan payments become 90-days past due; (ii) the loan has a maturity default; or (iii) in the opinion of the Company, it is probable the Company will be unable to collect all amounts due according to the contractual terms of the loan. Income recognition will be suspended when a loan is designated non-performing and resumed only when the suspended loan becomes contractually current and performance is demonstrated to have resumed. A loan will be written off when it is no longer realizable and legally discharged.

Per Share Data

Per Share Data

The Company calculates basic earnings per share by dividing net income attributable to the Company for the period by the weighted-average number of shares of common stock outstanding for that period. Diluted earnings per share reflects the potential dilution that could occur from shares issuable in connection with the restricted stock plan and if convertible shares were exercised, except when doing so would be anti-dilutive.

Reportable Segments

Reportable Segments

The Company conducts its business through the following segments:

• The real estate debt business which is focused on originating, acquiring and asset managing commercial real estate debt investments, including first mortgage loans, subordinate mortgages, mezzanine loans and participations in such loans.

• The real estate securities business which is focused on investing in and asset managing commercial real estate securities primarily consisting of CMBS and may include unsecured REIT debt, CDO notes and other securities.

Recently Issued Accounting Pronouncements

Recently Issued Accounting Pronouncements

In February 2015, the FASB amended the accounting for consolidation of certain legal entities. The amendments modify the evaluation of whether certain legal entities are VIEs or voting interest entities, eliminate the presumption that a general partner should consolidate a limited partnership and affect the consolidation analysis of reporting entities that are involved with VIEs (particularly those that have fee arrangements and related party relationships). The revised guidance is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. Early adoption was permitted, including adoption in an interim period. The Company elected to adopt this guidance effective January 1, 2016. The Company has evaluated the impact of the adoption of the new guidance on its consolidated financial statements and has determined the Company’s OP is considered a VIE. However, the Company meets the disclosure exemption criteria as the Company is the primary beneficiary of the VIE and the Company's partnership interest is considered a majority voting interest in a business and the assets of the OP can be used for purposes other than settling its obligation, such as paying distributions. As such, the new guidance did not have a material impact on the Company's consolidated financial statements.

In March 2016, the FASB issued an update that changes the accounting for certain aspects of share-based compensation. Among other things, the revised guidance allows companies to make an entity-wide accounting policy election to either estimate the number of awards that are expected to vest or account for forfeitures when they occur. The revised guidance is effective for reporting periods beginning after December 15, 2016. Early adoption is permitted. The Company is currently evaluating impact of this new guidance, however, adoption of the guidance is not expected to have material impact to the Company's consolidated financial statements.

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Commercial Mortgage Loans (Tables)

3 Months Ended

Mar. 31, 2016

Receivables [Abstract]

Summary of the company's loans receivable by class

The following table presents the activity in the Company's allowance for loan losses (in thousands):

	Three Months Ended March 31, 2016		Three Months Ended March 31, 2015
Beginning of period	$	888	$	570
Provision for loan losses	165		144
Charge-offs	—		—
Recoveries	—		—
Ending allowance for loan losses	$	1,053	$	714

As of March 31, 2016 and December 31, 2015, the Company's commercial mortgage loan portfolio comprised 76 and 77 loans, respectively.

	March 31, 2016				December 31, 2015
Loan Type	Par Value		Percentage		Par Value		Percentage
Office	$	312,957	27.5	%	$	307,876	27.2	%
Multifamily	302,436		26.6	%	305,129		26.9	%
Hospitality	172,086		15.1	%	171,752		15.1	%
Retail	159,476		14.0	%	158,784		14.0	%
Mixed Use	136,925		12.1	%	138,798		12.2	%
Industrial	52,313		4.7	%	52,107		4.6	%
	$	1,136,193	100.0	%	$	1,134,446	100.0	%

The following table is a summary of the Company's commercial mortgage loan carrying values by class (in thousands):

	March 31, 2016		December 31, 2015
Senior loans	$	901,272	$	894,075
Mezzanine loans	216,131		221,014
Subordinated loans	10,000		10,000
Total gross carrying value of loans	1,127,403		1,125,089
Less: Allowance for loan losses	1,053		888
Total commercial mortgage loans, net	$	1,126,350	$	1,124,201

Loans and Leases Receivable, Allowance for Loan Losses Policy

As part of the Company's process for monitoring the credit quality of its loans, it performs a quarterly loan portfolio assessment and assigns risk ratings to each of its loans. The loans are scored on a scale of 1 to 5 as follows:

Investment Rating	Summary Description
1	Investment exceeding fundamental performance expectations and/or capital gain expected. Trends and risk factors since time of investment are favorable.
2	Performing consistent with expectations and a full return of principal and interest expected. Trends and risk factors are neutral to favorable.
3	Performing investments requiring closer monitoring. Trends and risk factors show some deterioration.
4	Underperforming investment with some loss of interest expected but still expecting a positive return on investment. Trends and risk factors are negative.
5	Underperforming investment with expected loss of interest and some principal.

Real Estate Notes Receivable Rollforward

For the three months endedMarch 31, 2016 and March 31, 2015, the activity in the Company's loan portfolio was as follows (in thousands):

	Three Months Ended March 31, 2016			Three Months Ended March 31, 2015
Balance at Beginning of Year	$	1,124,201		$	456,884
Acquisitions and originations	9,697			116,434
Dispositions	—			—
Principal repayments	(7,949		)	(14,321		)
Discount accretion and premium amortization*	566			205
Provision for loan losses	(165		)	(144		)
Balance at End of Period	$	1,126,350		$	559,058

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* Includes amortization of capitalized acquisition fees and expenses.

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Real Estate Securities (Tables)

3 Months Ended

Mar. 31, 2016

Investments, Debt and Equity Securities [Abstract]

Fair Value Measurements, Recurring and Nonrecurring

The following is a summary of the Company's real estate securities, CMBS (in thousands):

		Weighted Average
	Number of Investments	Interest Rate		Maturity	Par Value		Fair Value
March 31, 2016	16	4.81	%	January 2019	$	132,255	$	124,871
December 31, 2015	16	4.71	%	February 2019	133,183		130,754

The following table presents the Company's financial instrument carried at fair value on a recurring basis in the consolidated balance sheet by its level in the fair value hierarchy as of March 31, 2016 and December 31, 2015 (in thousands):

	Total		Level I		Level II		Level III
March 31, 2016
Real estate securities	$	124,871	$	—	$	124,871	$	—
December 31, 2015
Real estate securities	130,754		—		130,754		—

Available-for-Sale Securities

The following table shows the amortized cost, unrealized gains/losses and fair value of the Company's CMBS investments as of March 31, 2016 and December 31, 2015(in thousands):

	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
March 31, 2016	$	132,089	$	8	$	(7,226	)	$	124,871
December 31, 2015	133,008		—		(2,254		)	130,754

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Debt (Tables)

3 Months Ended

Mar. 31, 2016

Debt Disclosure [Abstract]

Schedule of Master Repurchase Agreements

Below is a summary of the Company's MRAs as of March 31, 2016 and December 31, 2015 (in thousands):

							Weighted Average
Counterparty	Amount Outstanding		Accrued Interest		Collateral Pledged (*)		Interest Rate		Days to Maturity
As of March 31, 2016
J.P. Morgan Securities LLC	$	90,897	$	159	$	137,487	2.25	%	1
Citigroup Global Markets, Inc.	26,177		81		34,559		2.32	%	44
Wells Fargo Securities, LLC	3,375		3		4,500		1.79	%	13
Total/Weighted Average	$	120,449	$	243	$	176,546	2.25	%	11
As of December 31, 2015
J.P. Morgan Securities LLC	$	86,898	$	108	$	130,618	2.03	%	8
Citigroup Global Markets, Inc.	26,619		71		35,528		2.00	%	45
Wells Fargo Securities, LLC	3,694		3		4,925		1.67	%	13
Total/Weighted Average	$	117,211	$	182	$	171,071	2.01	%	17

* Includes $52,962 and $56,044 Tranche C of RFT issued CLO held by the Company, which eliminates within the Real estate securities, at fair value line of the consolidated balance sheets as of March 31, 2016 and December 31, 2015, respectively.

Schedule of Long-term Debt Instruments

The following table represents the terms of the CLO issued.

Facility ($000s)	Par Value Issued		Par Value Outstanding (*)		Interest Rate	Maturity Date
As of March 31, 2016
Tranche A	$	231,345	$	231,345	1M LIBOR + 175	8/1/2030
Tranche B	42,841		42,841		1M LIBOR + 388	8/1/2030
Tranche C	76,044		20,000		1M LIBOR + 525	8/1/2030
	$	350,230	$	294,186
As of December 31, 2015
Tranche A	$	231,345	$	231,345	1M LIBOR + 175	8/1/2030
Tranche B	42,841		42,841		1M LIBOR + 388	8/1/2030
Tranche C	76,044		20,000		1M LIBOR + 525	8/1/2030
	$	350,230	$	294,186

________________________

* Excludes $52,962 and $56,044 of Tranche C of RFT issued CLO held by the Company, which eliminates within the Real estate securities, at fair value line of the consolidated balance sheets as of March 31, 2016 and December 31, 2015, respectively.

Schedule of Variable Interest Entities

The below represents the total assets and liabilities of the Company's only CLO. The CLO is considered a VIE and is consolidated into the Company's consolidated financial statements as of March 31, 2016 and December 31, 2015 as the Company is the primary beneficiary of the VIE. The Company is the primary beneficiary of the CLO because (i) the Company has the power to direct the activities that most significantly affect the VIE’s economic performance and (ii) the right to receive benefits from the VIE or the obligation to absorb losses of the VIE that could be significant to the VIE.

Assets ($000s)	March 31, 2016		December 31, 2015
Cash	$	5	$	5
Commercial mortgage loans, held for investment, net	426,447		426,155
Accrued interest receivable	1,076		1,048
Total Assets	$	427,528	$	427,208
Liabilities
Notes payable (1)(2)	$	343,096	$	342,998
Accrued interest payable	530		513
Total Liabilities	$	343,626	$	343,511

________________________

⁽¹⁾ Includes $55,776 and $55,769 of Tranche C of RFT issued CLO held by the Company, which eliminates within the Collateral loan obligations line of the consolidated balance sheets as of March 31, 2016 and December 31, 2015, respectively.

⁽²⁾ The balance is presented net of deferred financing cost and discount of $7,134 and $7,232 as of March 31, 2016 and December 31, 2015, respectively. The notes payable balance as of December 31, 2015 of $348,269 as disclosed in Note 5 to the consolidated financial statements included in the 2015 Form 10-K was not net of deferred financing cost of $5,271.

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Net Income Per Share (Tables)

3 Months Ended

Mar. 31, 2016

Earnings Per Share [Abstract]

Summary of the Basic and Diluted Earnings Per Share

The following table is a summary of the basic and diluted net income per share computation for the three months ended March 31, 2016 and 2015, respectively:

	Three Months Ended March 31,
	2016		2015
Net income (in thousands)	$	9,420	$	4,632
Basic weighted average shares outstanding	31,548,897		17,279,713
Unvested restricted shares	6,114		4,373
Diluted weighted average shares outstanding	31,555,011		17,284,086
Basic net income per share	$	0.30	$	0.27
Diluted net income per share	$	0.30	$	0.27

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Common Stock (Tables)

3 Months Ended

Mar. 31, 2016

Equity [Abstract]

Schedule of Share Repurchases

The following table reflects the number of shares repurchased under the SRP cumulatively through March 31, 2016:

	Number of Requests	Number of Shares Repurchased	Average Price per Share
Cumulative as of December 31, 2015	301	381,474	23.72
January 1 - January 31, 2016	—	—	—
February 1 - February 29, 2016	—	—	—
March 1 - March 31, 2016	—	—	—
Cumulative as of March 31, 2016	301	381,474	23.72

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Commitments and Contingencies (Tables)

3 Months Ended

Mar. 31, 2016

Commitments and Contingencies Disclosure [Abstract]

Unfunded Commitments Under Commercial Mortgage Loans

As of March 31, 2016 and December 31, 2015, the Company had the below unfunded commitments which will generally be funded to finance capital expenditures by the Company's borrowers.

Funding Expiration	March 31, 2016		December 31, 2015
2016	$	468	$	890
2017	13,052		16,072
2018	99,079		104,428
2019	16,032		16,939
2020	—		—
2021	—		—
Total	$	128,631	$	138,329

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Related Party Transactions and Arrangements (Tables)

3 Months Ended

Mar. 31, 2016

Related Party Transactions [Abstract]

Schedule of Selling Commissions and Dealer Manager Fees Payable to Affiliate

The table below shows the compensation and reimbursement to the Advisor, its affiliates, entities under common control with the Advisor and the Former Dealer Manager incurred for services relating to the Offering during the three months ended March 31, 2016 and 2015, respectively, and the associated payable as of March 31, 2016 and December 31, 2015, respectively (in thousands):

	Three Months Ended March 31,				Payable as of
	2016		2015		March 31, 2016		December 31, 2015
Total commissions and fees incurred from the Former Dealer Manager	$	—	$	9,247	$	—	$	—
Total compensation and reimbursement for services provided by the Advisor, its affiliates, entities under common control with the Advisor and the Former Dealer Manager	$	—	$	1,962	$	472	$	480

Schedule of Amount Contractually Due and Forgiven in Connection With Operation Related Services

The table below depicts related party fees and reimbursements in connection with the operations of the Company for the three months endedMarch 31, 2016 and 2015 and the associated payable as of March 31, 2016 and December 31, 2015 (in thousands):

	Three Months Ended March 31,					Payable as of
	2016			2015		March 31, 2016		December 31, 2015
Acquisition fees and expense and others (*)	$	157		$	1,781	$	—	$	55
Administrative services and expenses	816		—	—		187		—
Advisory and investment banking fee	6			14		—		—
Asset management and subordinated performance fee	3,010			362		3,683		3,792
Other related party expenses	26			21		61		—
Total related party fees and reimbursements	$	4,015		$	2,178	$	3,931	$	3,847

________________________

* Includes amortization of capitalized acquisition fees and expenses.

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Fair Value of Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2016

Fair Value Disclosures [Abstract]

Fair Value Measurements, Recurring and Nonrecurring

The following is a summary of the Company's real estate securities, CMBS (in thousands):

		Weighted Average
	Number of Investments	Interest Rate		Maturity	Par Value		Fair Value
March 31, 2016	16	4.81	%	January 2019	$	132,255	$	124,871
December 31, 2015	16	4.71	%	February 2019	133,183		130,754

The following table presents the Company's financial instrument carried at fair value on a recurring basis in the consolidated balance sheet by its level in the fair value hierarchy as of March 31, 2016 and December 31, 2015 (in thousands):

	Total		Level I		Level II		Level III
March 31, 2016
Real estate securities	$	124,871	$	—	$	124,871	$	—
December 31, 2015
Real estate securities	130,754		—		130,754		—

Fair Value by Balance Sheet Grouping

The fair values of the Company's commercial mortgage loans and collateralized loan obligations, which are not reported at fair value on the consolidated balance sheets are reported below as of March 31, 2016 and December 31, 2015 (in thousands):

		Level	Carrying Amount		Fair Value
March 31, 2016
Commercial mortgage loans	Asset	III	$	1,127,403	$	1,133,935
Collateralized loan obligation	Liability	II	287,320		289,080
December 31, 2015
Commercial mortgage loans	Asset	III	1,125,089		1,138,841
Collateralized loan obligation	Liability	II	287,229		289,733

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Offsetting Assets and Liabilities (Tables)

3 Months Ended

Mar. 31, 2016

Offsetting [Abstract]

Offsetting Liabilities

The table below provides a gross presentation, the effects of offsetting and a net presentation of the Company's repurchase agreements within the scope of ASC 210-20, Balance Sheet—Offsetting, as of March 31, 2016 and December 31, 2015, respectively (in thousands):

							Gross Amounts Not Offset on the Balance Sheet
Repurchase Agreements	Gross Amounts of Recognized Liabilities		Gross Amounts Offset on the Balance Sheet		Net Amount of Liabilities Presented on the Balance Sheet		Financial Instruments as Collateral Pledged		Cash Collateral Pledged		Net Amount
March 31, 2016
Commercial mortgage loans	$	243,583	$	—	$	243,583	$	377,231	$	5,000	$	—
Real estate securities (*)	120,449		—		120,449		179,628		1,498		—
December 31, 2015
Commercial mortgage loans	206,239		—		206,239		355,802		5,000		—
Real estate securities (*)	117,211		—		117,211		171,071		366		—

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Segment Reporting (Tables)

3 Months Ended

Mar. 31, 2016

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment

The following table represents the Company's operations by segment for the three months endedMarch 31, 2016 and 2015 (in thousands):

Three Months Ended March 31, 2016	Total		Real Estate Debt		Real Estate Securities
Interest income	$	20,291	$	18,676	$	1,615
Interest expense	4,768		4,091		677
Net income	9,420		9,059		361
Three Months Ended March 31, 2015
Interest income	9,605		9,196		409
Interest expense	1,933		1,804		129
Net income	4,632		4,546		86

The following table represents the Company's total assets by segment as of March 31, 2016 and December 31, 2015 (in thousands):

As of March 31, 2016	Total		Real Estate Debt		Real Estate Securities
Total Assets	$	1,312,738	$	1,186,001	$	126,737
As of December 31, 2015
Total Assets	1,282,484		1,150,858		131,626

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Organization and Business Operations - Narrative (Details) - USD ($)		1 Months Ended	12 Months Ended
	Nov. 15, 2012	Jan. 31, 2016	Dec. 31, 2015	Mar. 31, 2016	Dec. 30, 2014
Schedule of Equity Method Investments [Line Items]
Cumulative capital investment return, percentage of benchmark	6.00%				6.00%
Intentional maximum sale of stock			$ 80,000,000.0
Common stock, par value per share (in dollars per share)			$ 0.01	$ 0.01
Common Stock
Schedule of Equity Method Investments [Line Items]
Unsold shares deregistered (shares)		4,069
DRIP
Schedule of Equity Method Investments [Line Items]
Intentional maximum sale of stock			$ 16,800,000
DRIP | Common Stock
Schedule of Equity Method Investments [Line Items]
Intentional maximum sale of stock		$ 49,700,000
Advisor
Schedule of Equity Method Investments [Line Items]
Contributions from advisor	$ 1,000
Advisor | Convertible Stock
Schedule of Equity Method Investments [Line Items]
Issuance of stock (in shares)	1,000

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Commercial Mortgage Loans - Loans Receivable by Class (Details) - USD ($) $ in Thousands		Mar. 31, 2016	Dec. 31, 2015	Mar. 31, 2015	Dec. 31, 2014
Receivables [Abstract]
Senior loans		$ 901,272	$ 894,075
Mezzanine loans		216,131	221,014
Subordinated loans		10,000	10,000
Total gross carrying value of loans		1,127,403	1,125,089
Less: Allowance for loan losses		1,053	888	$ 714	$ 570
Total commercial mortgage loans, net	[1]	$ 1,126,350	$ 1,124,201

[1] Includes $426,447 and $426,155 of loans pledged as collateral on collateralized loan obligations ("CLO"), a variable interest entity ("VIE") as of March 31, 2016 and December 31, 2015, respectively.

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Commercial Mortgage Loans - Provision for Loan Losses (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance	$ 888	$ 570
Provision for loan losses	165	144
Charge-offs	0	0
Recoveries	0	0
Ending balance	$ 1,053	$ 714

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Commercial Mortgage Loans - Narrative (Details)	3 Months Ended	12 Months Ended
	Mar. 31, 2016 rating loan	Dec. 31, 2015 loan
Receivables [Abstract]
Number of mezzanine loans funded | loan	76	77
Weighted average risk rating of loans | rating	2.0

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Commercial Mortgage Loans - Loans Receivable Portfolio (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross carrying value of loans	$ 1,127,403	$ 1,125,089
First Mortgage
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross carrying value of loans	$ 1,136,193	$ 1,134,446
Loan type as a percent of total loans, percent	100.00%	100.00%
First Mortgage | Office
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross carrying value of loans	$ 312,957	$ 307,876
Loan type as a percent of total loans, percent	27.50%	27.20%
First Mortgage | Multifamily
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross carrying value of loans	$ 302,436	$ 305,129
Loan type as a percent of total loans, percent	26.60%	26.90%
First Mortgage | Hospitality
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross carrying value of loans	$ 172,086	$ 171,752
Loan type as a percent of total loans, percent	15.10%	15.10%
First Mortgage | Retail
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross carrying value of loans	$ 159,476	$ 158,784
Loan type as a percent of total loans, percent	14.00%	14.00%
First Mortgage | Mixed Use
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross carrying value of loans	$ 136,925	$ 138,798
Loan type as a percent of total loans, percent	12.10%	12.20%
First Mortgage | Industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total gross carrying value of loans	$ 52,313	$ 52,107
Loan type as a percent of total loans, percent	4.70%	4.60%

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Commercial Mortgage Loans - Real Estate Notes Receivable (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Movement in Mortgage Loans on Real Estate [Roll Forward]
Balance at Beginning of Year	$ 1,124,201	$ 456,884
Acquisitions and originations	9,697	116,434
Dispositions	0	0
Principal repayments	(7,949)	(14,321)
Discount accretion and premium amortization	566	205
Provision for loan losses	(165)	(144)
Balance at End of Period	$ 1,126,350	$ 559,058

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Real Estate Securities - Fair Value Measurements, Recurring and Nonrecurring (Details) - Real estate securities $ in Thousands	Mar. 31, 2016 USD ($) investment	Dec. 31, 2015 USD ($) investment
Schedule of Available-for-sale Securities [Line Items]
Number of Investments | investment	16	16
Interest Rate	4.81%	4.71%
Par value of investments	$ 132,255	$ 133,183
Fair value of investments	$ 124,871	$ 130,754

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Real Estate Securities - Available-for-sale Securities (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Schedule of Available-for-sale Securities [Line Items]
Real estate securities, at fair value	$ 124,871	$ 130,754
Real estate securities
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	132,089	133,008
Unrealized Gains	8	0
Unrealized Losses	(7,226)	(2,254)
Real estate securities, at fair value	$ 124,871	$ 130,754

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Real Estate Securities - Narrative (Details) - Real estate securities $ in Thousands	3 Months Ended
	Mar. 31, 2016 USD ($) investment	Dec. 31, 2015 USD ($) investment
Schedule of Available-for-sale Securities [Line Items]
Number of Investments | investment	16	16
Aggregate carrying value	$ 132,089	$ 133,008
Unrealized loss	$ 7,226	$ 2,254
Number of investments in an unrealized loss position, 12 months or longer | investment	7
Unrealized loss for 12 months or longer	$ 200

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Debt - Narrative (Details)	3 Months Ended		12 Months Ended
	Mar. 31, 2016 USD ($) extension $ / shares shares	Mar. 31, 2015 USD ($)	Dec. 31, 2015 USD ($) $ / shares shares	Oct. 19, 2015 USD ($) mortgage_asset $ / shares shares
Line of Credit Facility [Line Items]
Preferred stock, shares issued (in shares) | shares	0		0
Preferred stock, par value per share (in dollars per share) | $ / shares	$ 0.01		$ 0.01
U.S. Bank National Association
Line of Credit Facility [Line Items]
Preferred stock, shares issued (in shares) | shares				78,188,494
Preferred stock, par value per share (in dollars per share) | $ / shares				$ 0.001
Preferred stock liquidation preference (in dollars per share) | $ / shares				$ 1,000
U.S. Bank National Association | Secured Debt
Line of Credit Facility [Line Items]
Notes payable	$ 350,230,000		$ 350,230,000	$ 350,200,000
U.S. Bank National Association | Secured Debt | Class C Notes
Line of Credit Facility [Line Items]
Notes payable	$ 76,044,000		$ 76,044,000	$ 76,000,000
U.S. Bank National Association | Secured Debt | Collateralized Loan Obligations
Line of Credit Facility [Line Items]
Number of mortgage assets pledged as collateral (mortgage asset) | mortgage_asset				28
Principal balance of collateral				$ 428,400,000
U.S. Bank National Association | Secured Debt | Subsidiaries | Class C Notes
Line of Credit Facility [Line Items]
Notes payable				$ 56,000,000
London Interbank Offered Rate (LIBOR) | Secured Debt | Class C Notes
Line of Credit Facility [Line Items]
Variable interest rate	5.25%		5.25%
Minimum
Line of Credit Facility [Line Items]
MRA maturity term (days)	30 days
Maximum
Line of Credit Facility [Line Items]
MRA maturity term (days)	90 days
Revolving Credit Facility
Line of Credit Facility [Line Items]
Revolving line of credit	$ 120,449,000		$ 117,211,000
Revolving Credit Facility | JPM Repo Facility
Line of Credit Facility [Line Items]
Unsecured line of credit	150,000,000
Revolving line of credit	$ 121,700,000		$ 84,300,000
Weighted average interest rate	2.70%		3.10%
Interest expense	$ 800,000	$ 700,000
Revolving Credit Facility | JPM Repo Facility | Minimum | London Interbank Offered Rate (LIBOR)
Line of Credit Facility [Line Items]
Variable interest rate	2.25%
Revolving Credit Facility | JPM Repo Facility | Maximum | London Interbank Offered Rate (LIBOR)
Line of Credit Facility [Line Items]
Variable interest rate	4.50%
Revolving Credit Facility | Barclays Repo Facility
Line of Credit Facility [Line Items]
Unsecured line of credit	$ 150,000,000
Extension on initial maturity date (years)	1 year
Increase in pricing rate per year	0.50%
Number of extensions (extension) | extension	2
Extension on extended maturity date (months)	6 months
Revolving line of credit	$ 121,900,000		$ 121,900,000
Weighted average interest rate	2.50%		2.40%
Interest expense	$ 800,000	$ 500,000
Revolving Credit Facility | Barclays Repo Facility | Minimum | London Interbank Offered Rate (LIBOR)
Line of Credit Facility [Line Items]
Variable interest rate	2.50%
Revolving Credit Facility | Barclays Repo Facility | Maximum | London Interbank Offered Rate (LIBOR)
Line of Credit Facility [Line Items]
Variable interest rate	3.00%

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Debt - Schedule of Master Repurchase Agreements (Details) - USD ($) $ in Thousands		3 Months Ended	12 Months Ended
		Mar. 31, 2016	Dec. 31, 2015
Assets Sold under Agreements to Repurchase [Line Items]
Accrued Interest	[1]	$ 924	$ 792
Real estate securities, at fair value		124,871	130,754
Class C Notes | Secured Debt | U.S. Bank National Association
Assets Sold under Agreements to Repurchase [Line Items]
Real estate securities, at fair value		52,962	56,044
Revolving Credit Facility
Assets Sold under Agreements to Repurchase [Line Items]
Amount Outstanding		120,449	117,211
Accrued Interest		243	182
Collateral Pledged		$ 176,546	$ 171,071
Interest Rate		2.25%	2.01%
Days to Maturity		11 days	17 days
Revolving Credit Facility | J.P. Morgan Securities LLC
Assets Sold under Agreements to Repurchase [Line Items]
Amount Outstanding		$ 90,897	$ 86,898
Accrued Interest		159	108
Collateral Pledged		$ 137,487	$ 130,618
Interest Rate		2.25%	2.03%
Days to Maturity		1 day	8 days
Revolving Credit Facility | Citigroup Global Markets, Inc.
Assets Sold under Agreements to Repurchase [Line Items]
Amount Outstanding		$ 26,177	$ 26,619
Accrued Interest		81	71
Collateral Pledged		$ 34,559	$ 35,528
Interest Rate		2.32%	2.00%
Days to Maturity		44 days	45 days
Revolving Credit Facility | Wells Fargo Securities, LLC
Assets Sold under Agreements to Repurchase [Line Items]
Amount Outstanding		$ 3,375	$ 3,694
Accrued Interest		3	3
Collateral Pledged		$ 4,500	$ 4,925
Interest Rate		1.79%	1.67%
Days to Maturity		13 days	13 days

[1] Includes $530 and $513 of interest payable for loans pledged as collateral on CLO, a VIE as of March 31, 2016 and December 31, 2015, respectively.

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Debt - Schedule of CLO Issued (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2016	Dec. 31, 2015	Oct. 19, 2015
Debt Instrument [Line Items]
Real estate securities, at fair value	$ 124,871	$ 130,754
Secured Debt | Tranche A | London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Variable interest rate	1.75%	1.75%
Secured Debt | Tranche B | London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Variable interest rate	3.88%	3.88%
Secured Debt | Tranche C | London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Variable interest rate	5.25%	5.25%
U.S. Bank National Association | Secured Debt
Debt Instrument [Line Items]
Par value issued	$ 350,230	$ 350,230	$ 350,200
Par value outstanding	294,186	294,186
U.S. Bank National Association | Secured Debt | Tranche A
Debt Instrument [Line Items]
Par value issued	231,345	231,345
Par value outstanding	231,345	231,345
U.S. Bank National Association | Secured Debt | Tranche B
Debt Instrument [Line Items]
Par value issued	42,841	42,841
Par value outstanding	42,841	42,841
U.S. Bank National Association | Secured Debt | Tranche C
Debt Instrument [Line Items]
Par value issued	76,044	76,044	$ 76,000
Par value outstanding	20,000	20,000
Real estate securities, at fair value	$ 52,962	$ 56,044

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Debt - Assets and Liabilities of the Company's VIE (Details) - USD ($) $ in Thousands		3 Months Ended	12 Months Ended
		Mar. 31, 2016	Dec. 31, 2015	Oct. 19, 2015	Mar. 31, 2015	Dec. 31, 2014
Variable Interest Entity [Line Items]
Cash		$ 49,207	$ 14,807		$ 17,155	$ 386
Commercial mortgage loans, held for investment, net	[1]	1,126,350	1,124,201
Accrued interest receivable	[2]	5,160	5,360
Total assets		1,312,738	1,282,484
Accrued Interest	[3]	924	792
Total liabilities		663,549	628,155
Collateralized loan obligation		287,320	287,229
U.S. Bank National Association | Secured Debt
Variable Interest Entity [Line Items]
Notes payable		350,230	350,230	$ 350,200
U.S. Bank National Association | Secured Debt | Class C Notes
Variable Interest Entity [Line Items]
Notes payable		76,044	76,044	$ 76,000
Collateralized loan obligation		55,776	55,769
Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Cash		5	5
Commercial mortgage loans, held for investment, net		426,447	426,155
Accrued interest receivable		1,076	1,048
Total assets		427,528	427,208
Notes payable		343,096	342,998
Accrued Interest		530	513
Total liabilities		343,626	343,511
Deferred financing cost and discount		$ 7,134	7,232
Variable Interest Entity, Primary Beneficiary | Notes Payable
Variable Interest Entity [Line Items]
Notes payable gross			348,269
Deferred financing cost			$ 5,271

[1] Includes $426,447 and $426,155 of loans pledged as collateral on collateralized loan obligations ("CLO"), a variable interest entity ("VIE") as of March 31, 2016 and December 31, 2015, respectively.

[2] Includes $1,076 and $1,048 of interest receivable for loans pledged as collateral on CLO, a VIE as of March 31, 2016 and December 31, 2015, respectively.

[3] Includes $530 and $513 of interest payable for loans pledged as collateral on CLO, a VIE as of March 31, 2016 and December 31, 2015, respectively.

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Net Income Per Share - Summary of the Basic and Diluted EPS (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Earnings Per Share [Abstract]
Net income	$ 9,420	$ 4,632
Basic weighted average shares outstanding	31,548,897	17,279,713
Unvested restricted shares	6,114	4,373
Diluted weighted average shares outstanding	31,555,011	17,284,086
Basic net income (loss) per share (in dollars per share)	$ 0.30	$ 0.27
Diluted net income (loss) per share (in dollars per share)	$ 0.30	$ 0.27

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Common Stock - Narrative (Details) $ / shares in Units, $ in Millions			1 Months Ended		3 Months Ended	12 Months Ended
	Feb. 28, 2016	Dec. 30, 2014 $ / shares shares	Mar. 31, 2016 $ / shares shares	May. 31, 2013 $ / shares	Mar. 31, 2016 USD ($) shares	Dec. 31, 2015 USD ($) shares	Nov. 04, 2015 $ / shares	Nov. 15, 2012
Class of Stock [Line Items]
Proceeds from issuance of common stock, DRIP | $					$ 755.5	$ 755.5
Cumulative capital investment return, percentage of benchmark		6.00%						6.00%
Convertible common stock quotient		0.15
Minimum distribution percentage to qualify for REIT taxation status					90.00%
Distribution percentage required to avoid paying federal income taxes					100.00%
Common stock, dividends, per share per day, declared (in dollars per share)				$ 0.00565068493
Common stock, dividends, per share per day, declared if it's a leap year (in dollars per share)			$ 0.0056352459
Common stock, dividends, per share per year, declared (in dollars per share)			$ 2.0625	$ 2.0625
Total distributions | $					$ 16.2	47.1
Cash distributions | $					9.6	26.9
Common stock distributions | $					$ 6.6	$ 20.2
Maximum share repurchases per fiscal semester	2.50%
Maximum share repurchases per fiscal year	5.00%
NAV per share (in dollars per share)							$ 25.27
Convertible Stock
Class of Stock [Line Items]
Shares outstanding (in shares) | shares			1,000		1,000	1,000
Issuance of convertible stock (in shares) | shares		1,000
Advisor | Convertible Stock
Class of Stock [Line Items]
Issuance of convertible stock (in shares) | shares		1,000
Convertible stock, per share value		$ 1.00
Common Stock
Class of Stock [Line Items]
Shares outstanding (in shares) | shares			31,645,633		31,645,633	31,385,280
Share Repurchase Program (SRP)
Class of Stock [Line Items]
Share repurchase program, NAV multiplier year one	92.50%
Share repurchase program, NAV multiplier year two	95.00%
Share repurchase program, NAV multiplier year three	97.50%
Share repurchase program, NAV multiplier year four	100.00%

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Common Stock - Shares Repurchased During the Period (Details) - Share Repurchase Program (SRP) - Common Stock	1 Months Ended
	Mar. 31, 2016 share_repurchase_request shares $ / shares	Feb. 29, 2016 share_repurchase_request $ / shares shares	Jan. 31, 2016 share_repurchase_request $ / shares shares
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance, number of requests (share repurchase request) | share_repurchase_request			301
Number of requests during the period (share repurchase request) | share_repurchase_request	0	0	0
Ending balance, number of requests (share repurchase request)	301
Beginning balance, number of shares repurchased (shares)			381,474
Number of shares repurchased (shares)	0	0	0
Ending balance, number of shares repurchased (shares)	381,474
Beginning balance, average price per share (usd per share) | $ / shares			$ 23.72
Repurchases, average price per share (usd per share) | $ / shares	$ 0.00	$ 0.00	$ 0.00
Ending balance, average price per share (usd per share) | $ / shares	$ 23.72

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Commitments and Contingencies (Details) - Loan Origination Commitments - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Unrecorded Unconditional Purchase Obligation [Line Items]
2016	$ 468	$ 890
2017	13,052	16,072
2018	99,079	104,428
2019	16,032	16,939
2020	0	0
2021	0	0
Total unfunded commitments	$ 128,631	$ 138,329

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Related Party Transactions and Arrangements - Narrative (Details) - USD ($)		3 Months Ended
	Dec. 30, 2014	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015	Jun. 01, 2013
Related Party Transaction [Line Items]
Common stock, shares outstanding and owned by related party (in shares)		31,645,633		31,385,280
Selling commission, organizational and offering costs, maximum		2.00%
Organizational and offering costs, amount exceeding offering proceeds		$ 800,000		$ 800,000
Asset management and subordinated performance fee		3,010,000	$ 362,000
Prepaid expenses and other assets		649,000		$ 689,000	$ 900,000
Acquisition related expenses and fees		$ 157,000	1,032,000
Convertible Stock
Related Party Transaction [Line Items]
Issuance of convertible stock (in shares)	1,000
Sponsor
Related Party Transaction [Line Items]
Common stock, shares outstanding and owned by related party (in shares)		8,888		888
Dealer Manager
Related Party Transaction [Line Items]
Selling commission, percentage of offering proceeds		7.00%
Selling commission, percentage of offering proceeds, reallowance fee		3.00%
Selling commission, percentage of offering proceeds, reduction fee		2.50%
Related party expenses		$ 0	9,247,000
Prepaid expenses and other assets				$ 6,000
Participating Broker Dealers
Related Party Transaction [Line Items]
Selling commission, percentage of offering proceeds		7.50%
Selling commission, percentage of offering proceeds, first payment		2.50%
Selling commission, percentage of offering proceeds, subsequent payments		1.00%
Affiliate
Related Party Transaction [Line Items]
Related party expenses		$ 4,015,000	2,178,000
Affiliate | Advisor | Asset Management Fee
Related Party Transaction [Line Items]
Related party expenses		$ 2,400,000	0
Advisor
Related Party Transaction [Line Items]
Real estate acquisition fee, percentage		1.00%
Real estate acquisition fee, percentage reimbursement of acquisition costs, maximum exposure		4.50%
Annual asset management fee, percentage based on the lower of total costs of assets or net asset value		0.75%
Subordinated performance fee, total return threshold		6.00%
Subordinated participation in asset sale fee		15.00%
Subordinated participation in asset sale fee maximum		10.00%
Asset management and subordinated performance fee		$ 600,000	400,000
Administrative services reimbursement, limitation, percentage of average invested assets		2.00%
Administrative services reimbursement, limitation, percentage of net income		25.00%
Real estate disposition fee, percentage		1.00%
Principal amount of debt, obligated to pay as disposition fee for each investment sold		1.00%
Advisor | Convertible Stock
Related Party Transaction [Line Items]
Issuance of convertible stock (in shares)	1,000
Convertible stock, per share value	$ 1.00
Advisor | Fee to Acquire and Originate Real Estate Debt
Related Party Transaction [Line Items]
Transaction rate		0.50%
Advisor | Administrative Service and Personnel Cost Reimbursements
Related Party Transaction [Line Items]
Related party expenses		$ 800,000
Advisor | Incurred | Acquisition fees and acquisition expenses
Related Party Transaction [Line Items]
Related party expenses		$ 200,000	1,000,000
Advisor | Payable | Acquisition fees and acquisition expenses
Related Party Transaction [Line Items]
Related party expenses			700,000
Advisor | Waived
Related Party Transaction [Line Items]
Acquisition related expenses and fees			$ 100,000

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Related Party Transactions and Arrangements - Schedule of Selling Commissions and Dealer Manager Fees Payable to Affiliate (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Related Party Transaction [Line Items]
Payable to related party	$ 4,403		$ 4,327
Dealer Manager
Related Party Transaction [Line Items]
Related party expenses	0	$ 9,247
Payable to related party	0		0
Advisor and Dealer Manager | Fees and Expense Reimbursement, Stock Offering
Related Party Transaction [Line Items]
Related party expenses	0	$ 1,962
Payable to related party	$ 472		$ 480

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Related Party Transactions and Arrangements - Schedule of Amount Contractually Due and Forgiven in Connection With Operation Related Services (Details) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Related Party Transaction [Line Items]
Payable to related party	$ 4,403,000		$ 4,327,000
Affiliate
Related Party Transaction [Line Items]
Related party expenses	4,015,000	$ 2,178,000
Payable to related party	3,931,000		3,847,000
Affiliate | Nonrecurring Fees | Acquisition fees and expenses
Related Party Transaction [Line Items]
Related party expenses	157,000	1,781,000
Payable to related party	0		55,000
Affiliate | Nonrecurring Fees | Administrative services and expenses
Related Party Transaction [Line Items]
Related party expenses	816,000	0
Payable to related party	187,000		0
Affiliate | Nonrecurring Fees | Advisory and investment banking fee
Related Party Transaction [Line Items]
Related party expenses	6,385	14,000
Payable to related party	0		0
Affiliate | Nonrecurring Fees | Asset management and subordinated performance fee
Related Party Transaction [Line Items]
Related party expenses	3,010,000	362,000
Payable to related party	3,683,000		3,792,000
Affiliate | Nonrecurring Fees | Other related party expenses
Related Party Transaction [Line Items]
Related party expenses	26,000	$ 21,000
Payable to related party	$ 61,000		$ 0

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Fair Value of Financial Instruments - Fair Value Measurements, Recurring and Nonrecurring (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Real estate securities, at fair value	$ 124,871	$ 130,754
Real estate securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Real estate securities, at fair value	124,871	130,754
Fair Value, Measurements, Recurring | Real estate securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Real estate securities, at fair value	124,871	130,754
Fair Value, Measurements, Recurring | Real estate securities | Level I
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Real estate securities, at fair value	0	0
Fair Value, Measurements, Recurring | Real estate securities | Level II
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Real estate securities, at fair value	124,871	130,754
Fair Value, Measurements, Recurring | Real estate securities | Level III
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Real estate securities, at fair value	$ 0	$ 0

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Fair Value of Financial Instruments - Fair Value by Balance Sheet Grouping (Details) - USD ($) $ in Thousands		Mar. 31, 2016	Dec. 31, 2015
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Commercial mortgage loans	[1]	$ 1,126,350	$ 1,124,201
Collateralized loan obligation		287,320	287,229
Carrying Amount | Level III
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Commercial mortgage loans		1,127,403	1,125,089
Carrying Amount | Level II
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Collateralized loan obligation		287,320	287,229
Fair Value | Level III
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Commercial mortgage loans		1,133,935	1,138,841
Fair Value | Level II
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Collateralized loan obligation		$ 289,080	$ 289,733

[1] Includes $426,447 and $426,155 of loans pledged as collateral on collateralized loan obligations ("CLO"), a variable interest entity ("VIE") as of March 31, 2016 and December 31, 2015, respectively.

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Offsetting Assets and Liabilities - Offsetting Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Commercial mortgage loans
Offsetting Liabilities [Line Items]
Gross Amounts of Recognized Liabilities	$ 243,583	$ 206,239
Gross Amounts Offset on the Balance Sheet	0	0
Net Amount of Liabilities Presented on the Balance Sheet	243,583	206,239
Financial Instruments as Collateral Pledged	377,231	355,802
Cash Collateral Pledged	5,000	5,000
Net Amount	0	0
Real Estate Securities
Offsetting Liabilities [Line Items]
Gross Amounts of Recognized Liabilities	120,449	117,211
Gross Amounts Offset on the Balance Sheet	0	0
Net Amount of Liabilities Presented on the Balance Sheet	120,449	117,211
Financial Instruments as Collateral Pledged	179,628	171,071
Cash Collateral Pledged	1,498	366
Net Amount	0	0
Real Estate Securities | U.S. Bank National Association | Class C Notes | Secured Debt
Offsetting Liabilities [Line Items]
Net Amount of Liabilities Presented on the Balance Sheet	$ 56,044	$ 56,044

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Segment Reporting - Schedule of Segment Reporting Information, by Segment (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Segment Reporting Information [Line Items]
Interest income	$ 20,291	$ 9,605
Interest expense	4,768	1,933
Net income	9,420	4,632
Total assets	1,312,738		$ 1,282,484
Operating Segments | Real Estate Debt
Segment Reporting Information [Line Items]
Interest income	18,676	9,196
Interest expense	4,091	1,804
Net income	9,059	4,546
Total assets	1,186,001		1,150,858
Operating Segments | Real Estate Securities
Segment Reporting Information [Line Items]
Interest income	1,615	409
Interest expense	677	129
Net income	361	$ 86
Total assets	$ 126,737		$ 131,626

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Subsequent Events - Narrative (Details) - USD ($) $ in Thousands		3 Months Ended		12 Months Ended
	Apr. 01, 2016	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Subsequent Event [Line Items]
Distributions paid		$ 9,619	$ 4,697
Dividends in cash		9,600		$ 26,900
Common stock issued through distribution reinvestment plan		$ 6,582
Subsequent Event
Subsequent Event [Line Items]
Distributions paid	$ 5,500
Dividends in cash	3,300
Common stock issued through distribution reinvestment plan	$ 2,200
Shares issued under DRIP (in shares)	86,595