Segment Reporting

6 Months Ended

Jun. 30, 2021

Segment Reporting [Abstract]

Segment Reporting

Segment Reporting

The Company conducts its business through the following reporting 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 commercial real estate conduit business operated through the Company's TRS, which is focused on generating risk-adjusted returns by originating and subsequently selling fixed-rate commercial real estate loans into the CMBS securitization market at a profit.

•The real estate owned business represents real estate acquired by the Company through foreclosure, deed in lieu of foreclosure, or purchase.

The following table represents the Company's operations by segment for the three and six months ended June 30, 2021 and June 30, 2020 (dollars in thousands):

Three Months Ended June 30, 2021	Total		Real Estate Debt and Other Real Estate Investments		Real Estate Securities		TRS		Real Estate Owned
Interest income	$	48,985	$	48,023	$	36	$	926	$	—
Revenue from Real Estate Owned	716		—		—		—		716
Interest expense	12,637		11,722		279		248		388
Net income	30,010		27,066		(1)		1,911		1,034
Total assets as of June 30, 2021	3,455,683		3,275,871		407		138,841		40,564
Three Months Ended June 30, 2020
Interest income	$	43,241	$	39,971	$	2,579	$	691	$	—
Revenue from Real Estate Owned	828		—		—		—		828
Interest expense	15,135		11,833		2,470		548		284
Net income	7,814		16,298		(5,200)		(2,146)		(1,138)
Total assets as of December 31, 2020	3,189,761		2,866,790		175,088		105,364		42,519
Six Months Ended June 30, 2021	Total		Real Estate Debt and Other Real Estate Investments		Real Estate Securities		TRS		Real Estate Owned
Interest income	$	91,222	$	88,780	$	460	$	1,982	$	—
Revenue from Real Estate Owned	1,432		—		—		—		1,432
Interest expense	24,006		22,297		460		580		669
Net income	60,156		50,097		(455)		9,450		1,064
Total assets as of June 30, 2021	3,455,683		3,275,871		407		138,841		40,564
Six Months Ended June 30, 2020
Interest income	$	91,095	$	83,340	$	5,874	$	1,881	$	—
Revenue from Real Estate Owned	2,457		—		—		—		2,457
Interest expense	39,627		33,541		4,277		1,241		568
Net income	414		15,115		(4,150)		(8,128)		(2,423)
Total assets as of December 31, 2020	3,189,761		2,866,790		175,088		105,364		42,519

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 originated during the year as the denominator and commercial mortgage loans, held for investment, net of allowance and commercial mortgage loans, held for sale, measured at fair value as numerator.