Repurchase Agreements

12 Months Ended

Dec. 31, 2018

Disclosure Of Repurchase Agreements [Abstract]

Repurchase Agreements

7. Repurchase Agreements

On June 29, 2018, the Company entered into a master repurchase agreement with Barclays Bank PLC (the “Barclays MRA”) providing the Company with financing secured by the Company’s investments in Real Estate-Related Securities. The Barclays MRA has a maximum facility size of $750.0 million and repurchase agreements under the Barclays MRA have longer dated maturity compared to our other counterparties. The initial maturity date of the repurchase agreements under the Barclays MRA is September 29, 2021. The terms of the Barclays MRA contain specific spread and advance rate provisions based on the rating of the underlying CMBS. The Company is in compliance with all financial covenants of the Barclays MRA.

Additionally, during the year ended December 31, 2018, the Company has entered into repurchase agreements with Morgan Stanley Bank, N.A. (the “MS MRA”), MUFG Securities EMEA PLC (the “MUFG MRA”) and HSBC Bank USA, National Association (the “HSBC MRA”). Previously, the Company entered into master repurchase agreements with Citigroup Global Markets Inc. (the “Citi MRA”), Royal Bank of Canada (the “RBC MRA”), and Bank of America Merrill Lynch (the “BAML MRA”) to provide the Company with additional financing capacity secured by the Company’s $2.2 billion of investments in Real Estate-Related Securities. The terms of the Citi MRA, RBC MRA, BAML MRA, MS MRA, and HSBC MRA provide the lenders the ability to determine the size and terms of the financing provided based upon the particular collateral pledged by the Company from time-to-time. 

The following tables are a summary of the Company’s repurchase agreements ($ in thousands):

	December 31, 2018
Facility	Weighted Average Maturity Date(1)	Security Interests	Collateral Assets(2)		Outstanding Balance		Prepayment Provisions
Barclays MRA	9/29/2021	CMBS(3)	$	989,059	$	750,000	None
RBC MRA	6/18/2019	CMBS		794,917		650,018	None
Citi MRA	1/13/2019	CMBS		193,372		154,736	None
MS MRA	1/15/2019	CMBS		173,050		146,569	None
MUFG MRA	4/30/2020	CMBS		15,266		12,400	None
			$	2,165,664	$	1,713,723

	December 31, 2017
Facility		Weighted Average Maturity Date(1)	Security Interests	Collateral Assets(2)		Outstanding Balance		Prepayment Provisions
Citi MRA		8/23/2018	CMBS	$	694,808	$	512,975	None
RBC MRA		11/24/2018	CMBS		194,918		150,238	None
BAML MRA		2/9/2018	CMBS		26,016		19,635	None
				$	915,742	$	682,848

⁽¹⁾ Subsequent to year end, the Company rolled its repurchase agreement contracts expiring in January 2019 into new contracts.

⁽²⁾ Represents the fair value of the Company’s investments in Real Estate-Related Securities that serve as collateral.

⁽³⁾ As of December 31, 2018, the security interests pledged under the Barclays MRA include one corporate bond.

The weighted average interest rate of our repurchase agreements was 3.96% (L+1.42%) and 3.11% (L+1.55%) for the year ended December 31, 2018 and 2017, respectively. The term “L” refers to the one-month, three-month or twelve-month U.S. dollar-denominated London Interbank Offer Rate (“LIBOR”).