Debt Obligations (Tables)

6 Months Ended

Jun. 30, 2024

Debt Disclosure [Abstract]

Summary of Financings

The following table summarizes our financings as of June 30, 2024 and December 31, 2023 ($ in thousands):

	June 30, 2024						December 31, 2023
	Capacity		Borrowing Outstanding		Weighted Average Spread (1)		Capacity		Borrowing Outstanding		Weighted Average Spread(1)
Repurchase agreements and term   participation facility (2)	$	5,626,006	$	3,990,887		+ 2.69%	$	5,709,907	$	4,271,112		+ 2.76%
Loan participations sold		100,634		100,634		+ 4.25%		120,634		120,634		+ 4.15%
Notes payable		359,667		247,027		+ 3.44%		419,867		286,827		+ 3.10%
Secured term loan		721,638		721,638		+ 4.50%		725,452		725,452		+ 4.50%
Debt related to real estate owned		280,000		280,000		+ 2.90%		290,000		290,000		+ 2.83%
Total/Weighted Average	$	7,087,945	$	5,340,186		+ 3.01%	$	7,265,860	$	5,694,025		+ 3.03%

(1)Weighted average spread over the applicable benchmark rate is based on unpaid principal balance. SOFR as of June 30, 2024 and December 31, 2023 was 5.34% and 5.35%, respectively.

(2)The repurchase agreements and term participation facility are partially recourse to us. As of June 30, 2024 and December 31, 2023, the weighted average recourse on both our repurchase agreements and term participation facility was 29% and 30%, respectively.

Summary of Repurchase Agreements

The following table summarizes our repurchase agreements by lender as of June 30, 2024 ($ in thousands):

Lender	Initial Maturity	Fully Extended Maturity (1)	Maximum Capacity		Borrowing Outstanding and Carrying Value		Undrawn Capacity		Carrying Value of Collateral (2)
JP Morgan Chase Bank, N.A.	7/28/2026	7/28/2028	$	2,411,713	$	2,268,143	$	143,570	$	3,284,536
Morgan Stanley Bank, N.A.	1/26/2025	1/26/2025		1,000,000		549,169		450,831		798,327
Goldman Sachs Bank USA	5/31/2025	5/31/2027		500,000		143,215		356,785		187,802
Barclays Bank PLC	12/20/2024	12/20/2025		500,000		-		500,000		-
Wells Fargo Bank, N.A.	9/29/2024	9/29/2026		750,000		660,167		89,833		895,896
Total			$	5,161,713	$	3,620,694	$	1,541,019	$	5,166,561

(1)Facility maturity dates may be extended, subject to meeting prescribed conditions.

(2)Net of specific CECL reserves, if any.

The Deutsche Bank AG, New York Branch repurchase agreement reached its maturity in June 2024, upon which the facility was terminated.

The following table summarizes our repurchase agreements by lender as of December 31, 2023 ($ in thousands):

Lender	Initial Maturity	Fully Extended Maturity (1)	Maximum Capacity		Borrowing Outstanding and Carrying Value		Undrawn Capacity		Carrying Value of Collateral (2)
JP Morgan Chase Bank, N.A.	7/28/2026	7/28/2028	$	1,905,465	$	1,672,878	$	232,587	$	2,257,442
Morgan Stanley Bank, N.A	1/26/2024	1/26/2025		1,000,000		735,393		264,607		1,023,295
Goldman Sachs Bank USA	5/31/2025 (3)	5/31/2027		500,000		175,755		324,245		286,623
Barclays Bank PLC	12/20/2024	12/20/2025		500,000		135,129		364,871		250,823
Deutsche Bank AG,   New York Branch	6/26/2024	6/26/2026		400,000		359,646		40,354		611,741
Wells Fargo Bank, N.A.	9/29/2024	9/29/2026		750,000		726,877		23,123		939,628
Total			$	5,055,465	$	3,805,678	$	1,249,787	$	5,369,552

(1)Facility maturity dates may be extended, subject to meeting prescribed conditions.

(2)Net of specific CECL reserves, if any.

(3)Assumes as of right extension is exercised, subject to meeting prescribed conditions.

Schedule of Loan Receivable Portfolio

Activity relating to the loans receivable portfolio for the six months ended June 30, 2024 ($ in thousands):

	Unpaid Principal Balance			Deferred Fees			Specific CECL Reserve			Carrying Value (1)
Balance at December 31, 2023	$	7,044,524		$	(24,141	)	$	(72,587	)	$	6,947,796
Advances on existing loans		263,427			-			-			263,427
Non-cash advances in lieu of interest		23,205			-			-			23,205
Origination fees, extension fees and exit fees		-			(1,423	)		-			(1,423	)
Repayments of loans receivable		(184,971	)		-			-			(184,971	)
Repayments of non-cash advances in lieu of interest		(1,865	)		-			-			(1,865	)
Accretion of fees		-			8,960			-			8,960
Provision for specific CECL reserve		-			-			(48,517	)		(48,517	)
Transfer to loans held-for-sale		(216,046	)		1,603			42,266			(172,177	)
Principal charge-offs		-			-			561			561
Balance at June 30, 2024	$	6,928,274		$	(15,001	)	$	(78,277	)	$	6,834,996
General CECL reserve											(125,479	)
Carrying Value										$	6,709,517

(1)Balance at December 31, 2023 does not include general CECL reserve.

Loan Participations Sold

Our loan participations sold as of June 30, 2024 are summarized as follows ($ in thousands):

Contractual Maturity Date	Maximum Extension Date	Borrowing Outstanding		Carrying Value		Carrying Value of Collateral
10/18/2024(1)	10/18/2024	$	100,634	$	100,759	$	183,992
Total		$	100,634	$	100,759	$	183,992

(1)Carrying value of collateral includes cash reserve balances held by our financing counterparty.

Our loan participations sold as of December 31, 2023 are summarized as follows ($ in thousands):

Contractual Maturity Date	Maximum Extension Date	Borrowing Outstanding		Carrying Value		Carrying Value of Collateral
10/18/2024(1)	10/18/2024	$	100,634	$	100,508	$	182,723
12/31/2024	12/31/2025		20,000		20,000		157,346
Total		$	120,634	$	120,508	$	340,069

(1)Carrying value of collateral includes cash reserve balances held by our financing counterparty.

Schedule of Term Participation Facility

Our term participation facility as of June 30, 2024 is summarized as follows ($ in thousands):

Contractual Maturity Date	Borrowing Outstanding		Carrying Value		Carrying Value of Collateral
10/11/2028	$	370,193	$	370,193	$	624,263

Our term participation facility as of December 31, 2023 is summarized as follows ($ in thousands):

Contractual Maturity Date	Borrowing Outstanding		Carrying Value		Carrying Value of Collateral
10/11/2028	$	465,434	$	465,434	$	797,335

Summary of Notes Payable

Our notes payable as of June 30, 2024 are summarized as follows ($ in thousands):

Contractual Maturity Date	Maximum Extension Date	Borrowing Outstanding		Carrying Value		Carrying Value of Collateral
5/13/2026	5/13/2027	$	52,973	$	52,326	$	119,036
2/2/2026	2/2/2027		55,004		54,295		67,583
9/2/2026	9/2/2027		79,917		78,793		112,340
10/13/2025	10/13/2026		59,133		58,604		97,869
Total		$	247,027	$	244,018	$	396,828

Our notes payable as of December 31, 2023 are summarized as follows ($ in thousands):

Contractual Maturity Date	Maximum Extension Date	Borrowing Outstanding		Carrying Value		Carrying Value of Collateral
12/31/2024	12/31/2025	$	110,714	$	110,152	$	157,346
2/2/2026	2/2/2027		50,418		49,576		61,941
9/2/2026	9/2/2027		46,267		45,063		64,270
11/22/2024	11/24/2026		39,504		39,237		52,662
10/13/2025	10/13/2026		39,924		39,313		65,637
Total		$	286,827	$	283,341	$	401,856

Summary of Secured Term Loan

The secured term loan as of June 30, 2024 is summarized as follows ($ in thousands):

Contractual Maturity Date	Stated Rate (1)	Interest Rate	Borrowing Outstanding		Carrying Value
8/9/2026	S + 4.50%	9.94%	$	721,638	$	711,177

(1)SOFR at June 30, 2024 was 5.34%.

The secured term loan as of December 31, 2023 is summarized as follows ($ in thousands):

Contractual Maturity Date	Stated Rate (1)	Interest Rate	Borrowing Outstanding		Carrying Value
8/9/2026	S + 4.50%	9.95%	$	725,452	$	712,576

(1)SOFR at December 31, 2023 was 5.35%.

Summary of additional detail related to the company's real estate portfolio

Our debt related to real estate owned as of June 30, 2024 is summarized as follows ($ in thousands):

Contractual Maturity Date	Stated Rate (1)	Net Interest Rate (1)	Borrowing Outstanding		Carrying Value
11/9/2024	S + 2.90%	7.90%	$	280,000	$	278,600

(1)SOFR at June 30, 2024 was 5.34%, which exceeded the 5.00% ceiling provided by our interest rate cap. See Note 7 - Derivatives for further detail.

Our debt related to real estate owned as of December 31, 2023 is summarized as follows ($ in thousands):

Contractual Maturity Date	Stated Rate (1)	Net Interest Rate (1)	Borrowing Outstanding		Carrying Value
2/9/2024	S + 2.83%	5.83%	$	290,000	$	289,913

(1)SOFR at December 31, 2023 was 5.35%, which exceeded the 3.00% ceiling provided by our interest rate cap. See Note 7 – Derivatives for further detail.

Summary of Interest Expense and Amortization

The following table summarizes our interest and amortization expense on our secured financings, debt related to real estate owned and secured term loan for the three and six months ended June 30, 2024 and 2023, respectively ($ in thousands):

	Three Months Ended				Six Months Ended
	June 30, 2024		June 30, 2023		June 30, 2024		June 30, 2023
Interest expense on secured financings	$	90,357	$	95,860	$	183,173	$	178,810
Interest expense on secured term loan		18,174		17,942		36,419		35,183
Amortization of deferred financing costs		4,694		5,874		9,564		11,710
Interest and related expense		113,225		119,676		229,156		225,703
Interest expense on debt related to real estate owned (1)		6,869		5,865		13,198		11,309
Total interest and related expense	$	120,094	$	125,541	$	242,354	$	237,012

(1)For the three months ended June 30, 2024 and 2023, interest on debt related to real estate owned includes $1.1 million and $132,000 of amortization of deferred financing costs, respectively. For the six months ended June 30, 2024 and 2023, interest on debt related to real estate owned includes $1.5 million and $263,000 of amortization of financing costs, respectively.