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Segment Reporting
12 Months Ended
Dec. 31, 2023
Segment Reporting [Abstract]  
Segment Reporting Segment Reporting
During the fourth quarter of 2023, the Company realigned its business and reportable segment information to reflect how the Chief Operating Decision Makers now regularly review and manage the business. As a result, the Company presents its business as one portfolio through the following business segments:
Senior and Mezzanine Loans and Preferred Equity—CRE debt investments including senior loans, mezzanine loans, and preferred equity interests as well as participations in such loans.
Net Leased and Other Real Estate—direct investments in CRE with long-term leases to tenants on a net lease basis, where such tenants generally will be responsible for property operating expenses such as insurance, utilities, maintenance, capital expenditures and real estate taxes. It also includes other real estate, currently consisting of two investments with direct ownership in commercial real estate, with an emphasis on properties with stable cash flow and five additional properties that the Company acquired through foreclosure or deed-in-lieu of foreclosure.
Corporate and Other—includes corporate-level asset management and other fees including expenses related to our secured revolving credit facility (the “Bank Credit Facility”) and compensation and benefits. It also includes a sub-portfolio of private equity funds.
There were no changes in the structure of the Company’s internal organization that prompted the change in reportable segments. Prior year amounts have been recast to conform to the current year presentation. Accordingly, the Company realigned the discussion and analysis of our portfolio and results of operations to reflect these reportable segments.
The Company primarily generates revenue from net interest income on the loan and preferred equity portfolio and rental and other income from its net leased and multi-tenant office assets. The Company’s income is primarily derived through the difference between revenue and the cost at which the Company is able to finance its investments. The Company may also acquire investments which generate attractive returns without any leverage.
The following tables present segment reporting for the years ended December 31, 2023, 2022 and 2021 (dollars in thousands):
Senior and Mezzanine Loans and Preferred EquityNet Leased and Other Real EstateCorporate and OtherTotal
Year Ended December 31, 2023
Interest income$298,512 $71 $119 $298,702 
Interest expense(171,984)(116)(1,209)(173,309)
Property and other income(19)94,738 12,605 107,324 
Property operating expense— (26,640)— (26,640)
Transaction, investment and servicing expense(1,696)(244)(559)(2,499)
Interest expense on real estate— (25,909)— (25,909)
Depreciation and amortization— (33,321)(183)(33,504)
Increase of current expected credit loss reserve(108,149)— — (108,149)
Impairment of operating real estate— (7,590)— (7,590)
Compensation and benefits— — (39,501)(39,501)
Operating expense(15)(19)(13,116)(13,150)
Other gain, net— 613 — 613 
Income (loss) before equity in earnings of unconsolidated ventures and income taxes16,649 1,583 (41,844)(23,612)
Equity in earnings of unconsolidated ventures9,055 — — 9,055 
Income tax expense(290)(555)(217)(1,062)
Net income (loss)$25,414 $1,028 $(42,061)$(15,619)
Senior and Mezzanine Loans and Preferred EquityNet Leased and Other Real EstateCorporate and OtherTotal
Year Ended December 31, 2022
Interest income$236,181 $— $— $236,181 
Interest expense(110,735)— (1,071)(111,806)
Interest income on mortgage loans held in securitization trusts— — 32,163 32,163 
Interest expense on mortgage obligations issued by securitization trusts— — (29,434)(29,434)
Property and other income 276 91,123 4,850 96,249 
Property operating expense— (24,222)— (24,222)
Transaction, investment and servicing expense(3,271)(244)81 (3,434)
Interest expense on real estate— (28,717)— (28,717)
Depreciation and amortization— (33,886)(213)(34,099)
Increase of current expected credit loss reserve(70,635)— — (70,635)
Compensation and benefits— — (33,031)(33,031)
Operating expense(139)(72)(14,430)(14,641)
Unrealized gain on mortgage loans and obligations held in securitization trusts, net— — 854 854 
Realized loss on mortgage loans and obligations held in securitization trusts, net— — (854)(854)
Other gain, net21,355 12,455 820 34,630 
Income (loss) before equity in earnings of unconsolidated ventures and income taxes73,032 16,437 (40,265)49,204 
Equity in earnings of unconsolidated ventures25 — — 25 
Income tax expense(518)(846)(1,076)(2,440)
Net income (loss)$72,539 $15,591 $(41,341)$46,789 
Senior and Mezzanine Loans and Preferred EquityNet Leased and Other Real EstateCorporate and OtherTotal
Year Ended December 31, 2021
Interest income$168,845 $— $— $168,845 
Interest expense(51,217)— (4,267)(55,484)
Interest income on mortgage loans held in securitization trusts— — 51,609 51,609 
Interest expense on mortgage obligations issued by securitization trusts— — (45,460)(45,460)
Property and other income1,013 102,724 1,230 104,967 
Management fee expense— — (9,596)(9,596)
Property operating expense— (30,286)— (30,286)
Transaction, investment and servicing expense(2,663)(290)(1,603)(4,556)
Interest expense on real estate— (32,278)— (32,278)
Depreciation and amortization— (36,162)(237)(36,399)
Decrease of current expected credit loss reserve1,432 — — 1,432 
Compensation and benefits— — (32,143)(32,143)
Operating expense(650)(133)(17,085)(17,868)
Restructuring charges— — (109,321)(109,321)
Unrealized gain on mortgage loans and obligations held in securitization trusts, net— — 41,904 41,904 
Realized loss on mortgage loans and obligations held in securitization trusts, net— — (36,623)(36,623)
Other gain, net55,797 11,170 7,100 74,067 
Income (loss) before equity in earnings of unconsolidated ventures and income taxes172,557 14,745 (154,492)32,810 
Equity in earnings (loss) of unconsolidated ventures(130,895)— (220)(131,115)
Income tax benefit (expense)(6,148)66 (194)(6,276)
Net income (loss)$35,514 $14,811 $(154,906)$(104,581)

The following table presents total assets by segment as of December 31, 2023 and December 31, 2022 (dollars in thousands):
Total AssetsSenior and Mezzanine Loans and Preferred EquityNet Leased and Other Real Estate
Corporate and Other(1)
Total
December 31, 2023$3,003,639 $934,100 $260,515 $4,198,254 
December 31, 20223,580,912 864,856 304,621 4,750,389 
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(1)Includes PE Investments totaling $2.3 million and $3.0 million as of December 31, 2023 and December 31, 2022, respectively, and cash, unallocated receivables and deferred costs and other assets, net.
Geography
Geography is generally defined as the location in which the income producing assets reside or the location in which income generating services are performed. Geography information on total income includes equity in earnings of unconsolidated ventures. Geography information on total income and long-lived assets are presented as follows (dollars in thousands):
Year Ended December 31,
202320222021
Total income by geography:
United States$396,365 $345,365 $201,344 
Europe18,716 19,253 (7,038)
Total(1)
$415,081 $364,618 $194,306 

December 31, 2023December 31, 2022
Long-lived assets by geography:
United States$629,663 $532,380 
Europe237,293 254,068 
Total(2)
$866,956 $786,448 
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(1)Includes interest income, interest income on mortgage loans held in securitization trusts, property and other income and equity in earnings of unconsolidated ventures.
(2)Long-lived assets are comprised of real estate and real estate-related intangible assets, and excludes financial instruments and assets held for sale.