Loans Receivable (Tables)

6 Months Ended

Jun. 30, 2014

Receivables [Abstract]

Summary of Trust's Loans Receivable

The following table summarizes the Trust’s loans receivable at June 30, 2014 and December 31, 2013 (in thousands):

			Carrying Amount				Contractual Maturity Date
Description	Loan Position	Stated Interest Rate	June 30, 2014		December 31, 2013
The Shops at Wailea	B-Note	6.15%	$	6,857	$	6,292		10/06/14
Playa Vista / Water’s Edge	Mezzanine	LIBOR + 15.75% (2)		12,350		10,327		01/23/15
Churchill (1)	Whole Loan	LIBOR + 3.75%		366		683		06/01/15
Rockwell	Mezzanine	12.0%		—		—		05/01/16
Pinnacle II	B-Note	6.31%		4,644		4,648		09/06/16
Popiu Shopping Village	B-Note	6.62%		2,120		2,058		01/06/17
Edens Center and Norridge Commons	Mezzanine	LIBOR + 12% (2)		15,769		—		03/09/17
Mentor Building	Whole Loan	10.0%		2,511		2,512		09/10/17
1515 Market	Whole Loan	—		—		—			(3)
Hotel Wales	Whole Loan	—		—		20,101			(4)
Legacy Orchard	Corporate Loan	—		—		9,750			(4)
San Marbeya	Whole Loan	—		—		28,546			(4)
500-512 7th Ave	B-Note	—		—		10,250			(4)
Wellington Tower	Mezzanine	—		—		2,991			(4)
Queensridge	Whole Loan	—		—		2,942			(5)
			$	44,617	$	101,100

(1) The Trust determined that this loan receivable is a variable interest in a VIE primarily based on the fact that the underlying entity does 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 0.5%.

(3) 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.

(4) These loans were sold to an independent third party in February 2014. See Note 4 – Acquisition and Disposition Activity for details on the sale.

(5) The loan was satisfied during the three months ended March 31, 2014.

Activity Related to Loans Receivable

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

	Six Months Ended June 30, 2014
Balance at January 1, 2014	$	101,100
Purchase and advances		21,992
Interest (received) accrued, net		(44	)
Repayments/sale proceeds/forgiveness		(74,157	)
Loan discount accretion		1,591
Discount accretion received in cash		(5,865	)
Balance at June 30, 2014	$	44,617

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, 2014 and 2013 (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2014		2013		2014		2013
Interest on loan assets	$	2,366	$	3,446	$	4,871	$	7,900
Exit fee/prepayment penalty		—		—		1,787		—
Accretion of loan discount		386		761		1,591		1,477
Interest and dividends on REIT securities		—		100		—		250
Total interest, dividends, and discount accretion	$	2,752	$	4,307	$	8,249	$	9,627

Loans Receivable by Internal Credit Rating

The table below summarizes the Trust’s loans receivable by internal credit rating at June 30, 2014 and December 31, 2013 (in thousands, except for number of loans):

	June 30, 2014				December 31, 2013
Internal Credit Quality	Number of Loans		Carrying Value of Loans Receivable		Number of Loans		Carrying Value of Loans Receivable
Greater than zero		6	$	32,267		11	$	90,773
Equal to zero		1		12,350		1		10,327
Less than zero		1		—		1		—
		8	$	44,617		13	$	101,100