STRUCTURED FINANCING PORTFOLIO

As of March 31, 2016, the Company’s structured financing portfolio, consisted of notes receivable and preferred equity investments, aggregating $154.7 million. These investments were collateralized either by underlying properties, the borrowers' ownership interests in the entities that own properties and/or by the borrowers' personal guarantee subordinate, as applicable, to senior liens, as follows:



(dollars in thousands)
Description	Notes	Effective interest rate (1)	First Priority liens	Net Carrying Amounts of Structured Financing Portfolio as of March 31, 2016		Net Carrying Amounts of Structured Financing Portfolio as of December 31, 2015		Maturity date	Extension Options
First Mortgage Loan		6.0%		$	15,000	$	15,000	5/1/2016	1 x 12 Months
First Mortgage Loan	(2)	7.0%		13,250		—		7/13/2016	1 x 3 Months
First Mortgage Loan	(3)	8.8%		—		7,500		11/1/2016
Preferred Equity	(4)	8.1%		—		13,000		9/1/2017
First Mortgage Loan		LIBOR + 7.1%		26,000		26,000		6/25/2018	1 x 12 Months
Zero Coupon Loan	(5)	2.5%		30,424		30,234		5/31/2020
Mezzanine Loan		15.0%	166,200	30,879		30,879		11/9/2020
Preferred Equity	(6)	15.3%		14,000		—		1/13/2021	2 x 12 Months
First Mortgage Loan	(7)	7.7%		12,000		12,000		Demand
Individually less than 3%	(8) (9)	5.5% to 18.0%		13,126		12,575		4/1/2016 to 7/1/2017
Total				$	154,679	$	147,188

Notes:

(1) Includes origination and exit fees

(2) During January 2016, Fund IV made a $13.3 million loan, which is collateralized by a property, bears interest at 7.0% and matures on July 13, 2016.

(3) During February 2016, the Company received full principal repayment of this $7.5 million note.

(4) During February 2016, the Company received a payment of $13.4 million, which included $13.0 million of full principal repayment and $0.4 million of prepayment penalty representing interest through June 2016 on this preferred equity investment that was originally scheduled to mature on September 1, 2017.

(5) The principal balance for this loan, which requires no current payments of interest, is increased by the interest accrued.

(6) During January 2016, Fund IV made a preferred equity investment in a joint venture for $14.0 million. The investment has a mandatory redemption date of January 13, 2021 and earns a preferred return rate of 15.3%.

(7) Loan was non-performing as of March 31, 2016. Based on the value of the underlying collateral, no reserve has been established against this loan.

(8) During 2016, the Company advanced an additional $0.4 million on a loan collateralized by a property.

(9) Consists of four loans as of March 31, 2016.


6.	STRUCTURED FINANCING PORTFOLIO (continued)

The Company monitors the credit quality of its notes receivable on an ongoing basis and considers indicators of credit quality such as loan payment activity, the estimated fair value of the underlying collateral, the seniority of the Company's loan in relation to other debt secured by the collateral and the prospects of the borrower. As of March 31, 2016, the Company held one non-performing note.