Loans Receivable (Tables)

6 Months Ended

Jun. 30, 2013

Receivables [Abstract]

Summary of Trust's Loans Receivable

The following table summarizes the Trust’s loans receivable at June 30, 2013 and December 31, 2012 (in thousands):

			Carrying Amount				Contractual Maturity Date
Description	Loan Position	Stated Interest Rate	June 30, 2013		December 31, 2012
Hotel Wales	Whole Loan	LIBOR + 4.0% (2)	$	20,097	$	20,101	10/05/13  (5)
Renaissance Walk	Mezzanine	LIBOR + 12.0% (3)		3,000		3,000	01/01/14
The Shops at Wailea	B-Note	6.15%		5,796		5,376	10/06/14
Legacy Orchard (1)	Corporate Loan	15.0%		9,750		9,750	10/31/14
Queensridge	Whole Loan	LIBOR + 11.5% (4)		13,863		39,170	11/15/14
San Marbeya	Whole Loan	5.88%		27,502		27,149	01/01/15
Playa Vista	Mezzanine	LIBOR + 14.25% (4)		10,322		—	01/23/15
Churchill (1)	Whole Loan	LIBOR + 3.75%		683		683	06/01/15
Rockwell	Mezzanine	12.0%		364		323	05/01/16
500-512 7th Ave	B-Note	7.19%		10,019		10,009	07/11/16
Pinnacle II	B-Note	6.31%		4,648		4,652	09/06/16
Poipu Shopping Village	B-Note	6.62%		1,999		1,948	01/06/17
Wellington Tower	Mezzanine	6.79%		2,754		2,687	07/11/17
Mentor Building	Whole Loan	10.0%		2,511		2,512	09/10/17
1515 Market	Whole Loan	(5)		—		58,650	(6)
127 West 25th Street	Mezzanine	—		—		8,687	(7)
180 N. Michigan	Mezzanine	—		—		5,237	(7)
Fenway Shea (1)	Whole Loan	—		—		2,273	(7)
The Disney Building	B-Note	—		—		9,043	(8)
			$	113,308	$	211,250

(1) The Trust determined that certain loans receivable are variable interests in VIEs primarily based on the fact that the underlying entities do not have sufficient equity at risk to permit the entity to finance its activities without additional subordinated financial support. The Trust does not have the power to direct the activities of the entity that most significantly impact the entity’s economic performance and is not required to consolidate the underlying entity.

(2) LIBOR floor of 3%.

(3) LIBOR floor of 2%.

(4) LIBOR floor of 0.5%.

(5) The borrower has a one year extension option and has given notice of their intention to exercise the option. The Trust is reviewing the borrower’s financial covenants and expects the extension to be granted.

(6) This loan was in maturity default at the time of acquisition. The loan was modified on February 1, 2013. The Trust consolidates the operations of the borrower entity and the loan receivable is eliminated in consolidation.

(7) The loans were satisfied at par during the six months ended June 30, 2013.

(8) The loan was sold during the six months ended June 30, 2013.

Activity Related to Loans Receivable

Activity related to loans receivable is as follows (in thousands):

	Six Months Ended June 30, 2013
Balance at January 1, 2013	$	211,250
Purchase and advances		22,314
Interest (received) accrued, net		(376	)
Repayments/ Sale proceeds		(61,078	)
Elimination of 1515 Market		(60,279	)
Loan discount accretion		1,477
Discount accretion received in cash		—
Balance at June 30, 2013	$	113,308

Interest, Dividend and Discount Accretion Income

The following table summarizes the Trust’s interest, dividend and discount accretion income for the three and six months ended June 30, 2013 and 2012 (in thousands):

	Three Months Ended June 30, 2013				Six Months Ended June 30, 2013
	2013		2012		2013		2012
Interest on loan assets	$	3,447	$	2,746	$	7,901	$	5,145
Accretion of loan discount		761		2,726		1,477		5,559
Interest and dividends on REIT securities		100		306		250		592
Total interest, dividends, and discount accretion	$	4,308	$	5,778	$	9,628	$	11,296

Loans Receivable by Internal Credit Rating

The table below summarizes the Trust’s loans receivable by internal credit rating at June 30, 2013 and December 31, 2012 (in thousands, except for number of loans):

	June 30, 2013				December 31, 2012
Internal Credit Quality	Number of Loans		Carrying Value of Loans Receivable		Number of Loans		Carrying Value of Loans Receivable
Greater than zero		13	$	102,986		18	$	211,250
Equal to zero		1		10,322		—		—
Less than zero		—		—		—		—
		14	$	113,308		18	$	211,250