Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2022 | Jul. 20, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-14788 | |
Entity Registrant Name | Blackstone Mortgage Trust, Inc. | |
Entity Incorporation, State or Country Code | MD | |
Entity Tax Identification Number | 94-6181186 | |
Entity Address, Address Line One | 345 Park Avenue | |
Entity Address, Address Line Two | 24th Floor | |
Entity Address, City or Town | New York | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10154 | |
City Area Code | 212 | |
Local Phone Number | 655-0220 | |
Title of 12(b) Security | Class A common stock, | |
Trading Symbol | BXMT | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 170,297,049 | |
Entity Central Index Key | 0001061630 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --12-31 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Assets | ||
Cash and cash equivalents | $ 283,580 | $ 551,154 |
Loans receivable | 24,831,546 | 22,003,017 |
Current expected credit loss reserve | (133,024) | (124,679) |
Loans receivable, net | 24,698,522 | 21,878,338 |
Other assets | 461,145 | 273,797 |
Total Assets | 25,443,247 | 22,703,289 |
Liabilities and Equity | ||
Secured debt, net | 13,905,949 | 12,280,042 |
Securitized debt obligations, net | 2,841,901 | 2,838,062 |
Asset-specific debt, net | 860,007 | 393,824 |
Loan participations sold, net | 225,884 | 0 |
Term loans, net | 1,809,942 | 1,327,406 |
Senior secured notes, net | 394,562 | 394,010 |
Convertible notes, net | 512,994 | 619,876 |
Other liabilities | 229,021 | 231,358 |
Total Liabilities | 20,780,260 | 18,084,578 |
Commitments and contingencies | 0 | 0 |
Equity | ||
Class A common stock, $0.01 par value, 400,000,000 shares authorized, 170,295,049 and 168,179,798 shares issued and outstanding as of June 30, 2022 and December 31, 2021, respectively | 1,703 | 1,682 |
Additional paid-in capital | 5,440,364 | 5,373,029 |
Accumulated other comprehensive income | 7,078 | 8,308 |
Accumulated deficit | (811,554) | (794,832) |
Total Blackstone Mortgage Trust, Inc. stockholders’ equity | 4,637,591 | 4,588,187 |
Non-controlling interests | 25,396 | 30,524 |
Total Equity | 4,662,987 | 4,618,711 |
Total Liabilities and Equity | $ 25,443,247 | $ 22,703,289 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 400,000,000 | 400,000,000 |
Common stock, shares issued (in shares) | 170,295,049 | 168,179,798 |
Common stock, shares outstanding (in shares) | 170,295,049 | 168,179,798 |
Assets | $ 25,443,247 | $ 22,703,289 |
Liabilities | 20,780,260 | 18,084,578 |
VIE | ||
Assets | 3,503,295 | 3,502,994 |
Liabilities | $ 2,845,217 | $ 2,839,862 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income from loans and other investments | ||||
Interest and related income | $ 283,687 | $ 196,303 | $ 518,119 | $ 383,827 |
Less: Interest and related expenses | 136,619 | 82,352 | 237,333 | 160,723 |
Income from loans and other investments, net | 147,068 | 113,951 | 280,786 | 223,104 |
Other expenses | ||||
Management and incentive fees | 27,065 | 21,545 | 50,551 | 40,752 |
General and administrative expenses | 12,409 | 10,669 | 24,769 | 21,267 |
Total other expenses | 39,474 | 32,214 | 75,320 | 62,019 |
(Increase) decrease in current expected credit loss reserve | (12,983) | 50,906 | (10,446) | 52,199 |
Income before income taxes | 94,611 | 132,643 | 195,020 | 213,284 |
Income tax provision | 746 | 175 | 892 | 276 |
Net income | 93,865 | 132,468 | 194,128 | 213,008 |
Net income attributable to non-controlling interests | (615) | (873) | (1,191) | (1,511) |
Net income attributable to Blackstone Mortgage Trust, Inc. | $ 93,250 | $ 131,595 | $ 192,937 | $ 211,497 |
Net income per share of common stock | ||||
Net income per share of common stock basic (in dollars per share) | $ 0.55 | $ 0.89 | $ 1.14 | $ 1.44 |
Net income per share of common stock diluted (in dollars per share) | $ 0.54 | $ 0.89 | $ 1.12 | $ 1.44 |
Weighted-average shares of common stock outstanding | ||||
Weighted-average shares of common stock outstanding, basic (in shares) | 170,665,601 | 147,342,822 | 169,963,730 | 147,339,895 |
Weighted-average shares of common stock outstanding, diluted (in shares) | 185,009,805 | 147,342,822 | 180,332,341 | 147,339,895 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Statement [Abstract] | ||||
Net income | $ 93,865 | $ 132,468 | $ 194,128 | $ 213,008 |
Other comprehensive (loss) income | ||||
Unrealized (loss) gain on foreign currency translation | (130,207) | 15,553 | (175,429) | (19,404) |
Realized and unrealized gain (loss) on derivative financial instruments | 128,685 | (16,094) | 174,199 | 18,977 |
Other comprehensive loss | (1,522) | (541) | (1,230) | (427) |
Comprehensive income | 92,343 | 131,927 | 192,898 | 212,581 |
Comprehensive income attributable to non-controlling interests | (615) | (873) | (1,191) | (1,511) |
Comprehensive income attributable to Blackstone Mortgage Trust, Inc. | $ 91,728 | $ 131,054 | $ 191,707 | $ 211,070 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity (Unaudited) - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Stockholders' Equity | Stockholders' Equity Cumulative Effect, Period of Adoption, Adjustment | Class A Common Stock | Additional Paid-In Capital | Additional Paid-In Capital Cumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive (Loss) Income | Accumulated Deficit | Accumulated Deficit Cumulative Effect, Period of Adoption, Adjustment | Non-Controlling Interests |
Beginning balance at Dec. 31, 2020 | $ 3,904,231 | $ 3,886,067 | $ 1,468 | $ 4,702,713 | $ 11,170 | $ (829,284) | $ 18,164 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Shares of class A common stock issued, net | 2 | 2 | 2 | ||||||||
Restricted class A common stock earned | 7,958 | 7,958 | 7,958 | ||||||||
Dividends reinvested | 204 | 204 | 204 | ||||||||
Deferred directors’ compensation | 125 | 125 | 125 | ||||||||
Net income | 80,540 | 79,902 | 79,902 | 638 | |||||||
Other comprehensive income (loss) | 114 | 114 | 114 | ||||||||
0.62 | (91,349) | (91,349) | (91,349) | ||||||||
Contributions from non-controlling interests | 13,448 | 13,448 | |||||||||
Distributions to non-controlling interests | (11,180) | (11,180) | |||||||||
Ending balance at Mar. 31, 2021 | $ 3,904,093 | 3,883,023 | 1,470 | 4,711,000 | 11,284 | (840,731) | 21,070 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Dividends declared on common stock (in dollars per share) | $ 0.62 | ||||||||||
Beginning balance at Dec. 31, 2020 | $ 3,904,231 | 3,886,067 | 1,468 | 4,702,713 | 11,170 | (829,284) | 18,164 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net income | 213,008 | ||||||||||
Other comprehensive income (loss) | (427) | ||||||||||
0.62 | (182,696) | ||||||||||
Ending balance at Jun. 30, 2021 | $ 3,956,955 | 3,930,961 | 1,470 | 4,719,231 | 10,743 | (800,483) | 25,994 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Dividends declared on common stock (in dollars per share) | $ 1.24 | ||||||||||
Beginning balance at Dec. 31, 2020 | $ 3,904,231 | 3,886,067 | 1,468 | 4,702,713 | 11,170 | (829,284) | 18,164 | ||||
Ending balance at Dec. 31, 2021 | $ 4,618,711 | $ (477) | 4,588,187 | $ (477) | 1,682 | 5,373,029 | $ (2,431) | 8,308 | (794,832) | $ 1,954 | 30,524 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Accounting Standards Update [Extensible Enumeration] | Accounting Standards Update 2020-06 | ||||||||||
Beginning balance at Mar. 31, 2021 | $ 3,904,093 | 3,883,023 | 1,470 | 4,711,000 | 11,284 | (840,731) | 21,070 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Restricted class A common stock earned | 7,895 | 7,895 | 7,895 | ||||||||
Dividends reinvested | 211 | 211 | 211 | ||||||||
Deferred directors’ compensation | 125 | 125 | 125 | ||||||||
Net income | 132,468 | 131,595 | 131,595 | 873 | |||||||
Other comprehensive income (loss) | (541) | (541) | (541) | ||||||||
0.62 | (91,347) | (91,347) | (91,347) | ||||||||
Contributions from non-controlling interests | 14,745 | 14,745 | |||||||||
Distributions to non-controlling interests | (10,694) | (10,694) | |||||||||
Ending balance at Jun. 30, 2021 | $ 3,956,955 | 3,930,961 | 1,470 | 4,719,231 | 10,743 | (800,483) | 25,994 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Dividends declared on common stock (in dollars per share) | $ 0.62 | ||||||||||
Beginning balance at Dec. 31, 2021 | $ 4,618,711 | (477) | 4,588,187 | (477) | 1,682 | 5,373,029 | (2,431) | 8,308 | (794,832) | 1,954 | 30,524 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Shares of class A common stock issued, net | 52,159 | 52,159 | 21 | 52,138 | |||||||
Restricted class A common stock earned | 8,472 | 8,472 | 8,472 | ||||||||
Dividends reinvested | 246 | 246 | 246 | ||||||||
Deferred directors’ compensation | 173 | 173 | 173 | ||||||||
Net income | 100,263 | 99,687 | 99,687 | 576 | |||||||
Other comprehensive income (loss) | 292 | 292 | 292 | ||||||||
0.62 | (105,801) | (105,801) | (105,801) | ||||||||
Contributions from non-controlling interests | 5,040 | 5,040 | |||||||||
Distributions to non-controlling interests | (9,241) | (9,241) | |||||||||
Ending balance at Mar. 31, 2022 | $ 4,669,837 | 4,642,938 | 1,703 | 5,431,627 | 8,600 | (798,992) | 26,899 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Dividends declared on common stock (in dollars per share) | $ 0.62 | ||||||||||
Beginning balance at Dec. 31, 2021 | $ 4,618,711 | $ (477) | 4,588,187 | $ (477) | 1,682 | 5,373,029 | $ (2,431) | 8,308 | (794,832) | $ 1,954 | 30,524 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net income | 194,128 | ||||||||||
Other comprehensive income (loss) | (1,230) | ||||||||||
0.62 | (211,613) | ||||||||||
Ending balance at Jun. 30, 2022 | $ 4,662,987 | 4,637,591 | 1,703 | 5,440,364 | 7,078 | (811,554) | 25,396 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Dividends declared on common stock (in dollars per share) | $ 1.24 | ||||||||||
Beginning balance at Mar. 31, 2022 | $ 4,669,837 | 4,642,938 | 1,703 | 5,431,627 | 8,600 | (798,992) | 26,899 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Restricted class A common stock earned | 8,245 | 8,245 | 8,245 | ||||||||
Dividends reinvested | 319 | 319 | 319 | ||||||||
Deferred directors’ compensation | 173 | 173 | 173 | ||||||||
Net income | 93,865 | 93,250 | 93,250 | 615 | |||||||
Other comprehensive income (loss) | (1,522) | (1,522) | (1,522) | ||||||||
0.62 | (105,812) | (105,812) | (105,812) | ||||||||
Distributions to non-controlling interests | (2,118) | (2,118) | |||||||||
Ending balance at Jun. 30, 2022 | $ 4,662,987 | $ 4,637,591 | $ 1,703 | $ 5,440,364 | $ 7,078 | $ (811,554) | $ 25,396 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Dividends declared on common stock (in dollars per share) | $ 0.62 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Equity (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Statement of Stockholders' Equity [Abstract] | ||||||
Dividends declared on common stock (in dollars per share) | $ 0.62 | $ 0.62 | $ 0.62 | $ 0.62 | $ 1.24 | $ 1.24 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Cash flows from operating activities | ||
Net income | $ 194,128 | $ 213,008 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Non-cash compensation expense | 17,068 | 16,105 |
Amortization of deferred fees on loans and debt securities | (38,740) | (28,674) |
Amortization of deferred financing costs and premiums/ discount on debt obligations | 22,059 | 19,277 |
Increase (decrease) in current expected credit loss reserve | 10,446 | (52,199) |
Unrealized gain on assets denominated in foreign currencies, net | (31) | (7,065) |
Unrealized (gain) loss on derivative financial instruments, net | (713) | 635 |
Realized (gain) loss on derivative financial instruments, net | (4,326) | 3,119 |
Changes in assets and liabilities, net | ||
Other assets | (39,865) | (4,261) |
Other liabilities | 23,570 | 5,428 |
Net cash provided by operating activities | 183,596 | 165,373 |
Cash flows from investing activities | ||
Principal fundings of loans receivable | (5,589,977) | (3,636,063) |
Principal collections and sales proceeds from loans receivable and debt securities | 2,004,323 | 2,670,773 |
Origination and exit fees received on loans receivable | 58,716 | 41,262 |
Receipts under derivative financial instruments | 129,010 | 23,194 |
Payments under derivative financial instruments | (6,528) | (72,478) |
Collateral deposited under derivative agreements | 0 | (81,430) |
Return of collateral deposited under derivative agreements | 0 | 129,770 |
Net cash used in investing activities | (3,404,456) | (924,972) |
Cash flows from financing activities | ||
Borrowings under secured debt | 4,246,219 | 4,230,404 |
Repayments under secured debt | (2,183,131) | (3,332,395) |
Proceeds from issuance of securitized debt obligations | 0 | 803,750 |
Repayment of securitized debt obligations | 0 | (888,763) |
Borrowings under asset-specific debt | 551,893 | 77,975 |
Repayments under asset-specific debt | (78,659) | (178,073) |
Proceeds from sale of loan participations | 245,278 | 0 |
Net proceeds from issuance of term loans | 492,500 | 298,500 |
Repayments of term loans | (6,869) | (6,625) |
Net proceeds from issuance of convertible notes | 294,000 | 0 |
Repayment of convertible notes | (402,500) | 0 |
Payment of deferred financing costs | (30,489) | (22,811) |
Contributions from non-controlling interests | 5,040 | 28,193 |
Distributions to non-controlling interests | (11,359) | (21,874) |
Net proceeds from issuance of class A common stock | 52,155 | 0 |
Dividends paid on class A common stock | (209,847) | (182,163) |
Net cash provided by financing activities | 2,964,231 | 806,118 |
Net (decrease) increase in cash, cash equivalents, and restricted cash | (256,629) | 46,519 |
Cash, cash equivalents, and restricted cash at beginning of period | 551,154 | 289,970 |
Effects of currency translation on cash, cash equivalents, and restricted cash | (10,945) | 3,063 |
Cash, cash equivalents, and restricted cash at end of period | 283,580 | 339,552 |
Supplemental disclosure of cash flows information | ||
Payments of interest | (188,611) | (140,601) |
(Payments) receipts of income taxes | (407) | 141 |
Supplemental disclosure of non-cash investing and financing activities | ||
Dividends declared, not paid | (105,583) | (91,150) |
Loan principal payments held by servicer, net | $ 189,909 | $ 27,612 |
Organization
Organization | 6 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | ORGANIZATION References herein to “Blackstone Mortgage Trust,” “Company,” “we,” “us” or “our” refer to Blackstone Mortgage Trust, Inc. and its subsidiaries unless the context specifically requires otherwise. Blackstone Mortgage Trust is a real estate finance company that originates senior loans collateralized by commercial real estate in North America, Europe, and Australia. Our portfolio is composed primarily of loans secured by high-quality, institutional assets in major markets, sponsored by experienced, well-capitalized real estate investment owners and operators. These senior loans are capitalized by accessing a variety of financing options, including borrowing under our credit facilities, issuing CLOs or single-asset securitizations, and syndicating senior loan participations, depending on our view of the most prudent financing option available for each of our investments. We are not in the business of buying or trading securities, and the only securities we own are the retained interests from our securitization financing transactions, which we have not financed. We are externally managed by BXMT Advisors L.L.C., or our Manager, a subsidiary of Blackstone Inc., or Blackstone, and are a real estate investment trust, or REIT, traded on the New York Stock Exchange, or NYSE, under the symbol “BXMT.” Our principal executive offices are located at 345 Park Avenue, 24th Floor, New York, New York 10154. We were incorporated in Maryland in 1998, when we reorganized from a California common law business trust into a Maryland corporation. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America, or GAAP, for interim financial information and the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. The consolidated financial statements, including the notes thereto, are unaudited and exclude some of the disclosures required in audited financial statements. We believe we have made all necessary adjustments, consisting of only normal recurring items, so that the consolidated financial statements are presented fairly and that estimates made in preparing our consolidated financial statements are reasonable and prudent. The operating results presented for interim periods are not necessarily indicative of the results that may be expected for any other interim period or for the entire year. The accompanying unaudited consolidated interim financial statements should be read in conjunction with the audited consolidated financial statements included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2021 filed with the Securities and Exchange Commission, or the SEC. Basis of Presentation The accompanying consolidated financial statements include, on a consolidated basis, our accounts, the accounts of our wholly-owned subsidiaries, majority-owned subsidiaries, and variable interest entities, or VIEs, of which we are the primary beneficiary. All intercompany balances and transactions have been eliminated in consolidation. Certain reclassifications have been made in the presentation of the prior period statements of changes in equity to conform to the current period presentation. Principles of Consolidation We consolidate all entities that we control through either majority ownership or voting rights. In addition, we consolidate all VIEs of which we are considered the primary beneficiary. VIEs are defined as entities in which equity investors (i) do not have the characteristics of a controlling financial interest and/or (ii) do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties. The entity that consolidates a VIE is known as its primary beneficiary and is generally the entity with (i) the power to direct the activities that most significantly affect the VIE’s economic performance and (ii) the right to receive benefits from the VIE or the obligation to absorb losses of the VIE that could be significant to the VIE. In the third quarter of 2018, we contributed a loan to a single asset securitization vehicle, or the 2018 Single Asset Securitization, which is a VIE, and invested in the related subordinate position. We were not the primary beneficiary of the VIE because we did not have the power to direct the activities that most significantly affected the VIE’s economic performance and, therefore, did not consolidate the 2018 Single Asset Securitization on our balance sheet. We classified the subordinate position we owned as a held-to-maturity debt security that is included in other assets on our consolidated balance sheets. During the six months ended June 30, 2022, the 2018 Single Asset Securitization was liquidated upon full repayment of its collateral and all senior securities outstanding. Refer to Note 18 for additional discussion of our VIEs. In April 2017, we entered into a joint venture, or our Multifamily Joint Venture, with Walker & Dunlop Inc. to originate, hold, and finance multifamily bridge loans. Pursuant to the terms of the agreements governing the joint venture, Walker & Dunlop contributed 15% of the venture’s equity capital and we contributed 85%. We consolidate the Multifamily Joint Venture as we have a controlling financial interest. The non-controlling interests included on our consolidated balance sheets represent the equity interests in our Multifamily Joint Venture that are owned by Walker & Dunlop. A portion of our Multifamily Joint Venture’s consolidated equity and results of operations are allocated to these non-controlling interests based on Walker & Dunlop’s pro rata ownership of our Multifamily Joint Venture. Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. As the novel coronavirus, or COVID-19, pandemic has evolved from its emergence in early 2020, so has its global impact. During the course of the pandemic, many countries have re-instituted, or strongly encouraged, varying levels of quarantines and restrictions on travel and in some cases have at times limited operations of certain businesses and taken other restrictive measures designed to help slow the spread of COVID-19 and its variants. Governments and businesses have also instituted vaccine mandates and testing requirements for employees. While vaccine availability and uptake has increased, the longer-term macro-economic effects on global supply chains, inflation, labor shortages and wage increases continue to impact many industries, including the collateral underlying certain of our loans. Moreover, with the potential for new strains of COVID-19 or outbreaks of other infectious diseases, governments and businesses may re-impose aggressive measures to help slow the spread of infectious diseases in the future. For this reason, among others, as the COVID-19 pandemic continues, the potential global impacts are uncertain and difficult to assess. We believe the estimates and assumptions underlying our consolidated financial statements are reasonable and supportable based on the information available as of June 30, 2022, however uncertainty over the ultimate impact of COVID-19, rising inflation and increases in interest rates on the global economy generally, and our business in particular, makes any estimates and assumptions as of June 30, 2022 inherently less certain than they would be absent the current and potential impacts of COVID-19, macroeconomic changes, and geopolitical events. Actual results may ultimately differ materially from those estimates. Revenue Recognition Interest income from our loans receivable portfolio and debt securities is recognized over the life of each investment using the effective interest method and is recorded on the accrual basis. Recognition of fees, premiums, and discounts associated with these investments is deferred and recorded over the term of the loan or debt security as an adjustment to yield. Income accrual is generally suspended for loans at the earlier of the date at which payments become 90 days past due or when, in our opinion, recovery of income and principal becomes doubtful. Interest received is then recorded as a reduction in the outstanding principal balance until accrual is resumed when the loan becomes contractually current and performance is demonstrated to be resumed. In addition, for loans we originate, the related origination expenses are deferred and recognized as a component of interest income, however expenses related to loans we acquire are included in general and administrative expenses as incurred. Cash and Cash Equivalents Cash and cash equivalents represent cash held in banks and liquid investments with original maturities of three months or less. We may have bank balances in excess of federally insured amounts; however, we deposit our cash and cash equivalents with high credit-quality institutions to minimize credit risk exposure. We have not experienced, and do not expect, any losses on our cash or cash equivalents. Restricted cash represents cash collateral held within our 2021 FL4 collateralized loan obligation. See Note 6 for further discussion of the 2021 FL4 collateralized loan obligation. The following table provides a reconciliation of cash, cash equivalents, and restricted cash on our consolidated balance sheets to the total amount shown on our consolidated statements of cash flows ($ in thousands): June 30, 2022 June 30, 2021 Cash and cash equivalents $ 283,580 $ 289,552 2021 FL4 CLO restricted cash — 50,000 Total cash, cash equivalents, and restricted cash shown in our consolidated statements of cash flows $ 283,580 $ 339,552 Through our subsidiaries, we have oversight of certain servicing accounts held with third-party servicers, or Servicing Accounts, which relate to borrower escrows and other cash balances aggregating $623.3 million and $531.2 million as of June 30, 2022 and December 31, 2021, respectively. This cash is maintained in segregated bank accounts, and these amounts are not included in the assets and liabilities presented in our consolidated balance sheets. Cash in these Servicing Accounts will be transferred by the respective third-party servicer to the borrower or us under the terms of the applicable loan agreement upon occurrence of certain future events. We do not generate any revenue or incur any expenses as a result of these Servicing Accounts. Loans Receivable We originate and purchase commercial real estate debt and related instruments generally to be held as long-term investments at amortized cost. Debt Securities Held-to-Maturity We classify our debt securities as held-to-maturity, as we have the intent and ability to hold these securities until maturity. We include our debt securities in other assets on our consolidated balance sheets at amortized cost. Current Expected Credit Losses Reserve The current expected credit loss, or CECL, reserve required under Accounting Standard Update, or ASU, 2016-13 “Financial Instruments – Credit Losses – Measurement of Credit Losses on Financial Instruments (Topic 326),” or ASU 2016-13, reflects our current estimate of potential credit losses related to our loans and debt securities included in our consolidated balance sheets. Changes to the CECL reserve are recognized through net income on our consolidated statements of operations. While ASU 2016-13 does not require any particular method for determining the CECL reserve, it does specify the reserve should be based on relevant information about past events, including historical loss experience, current portfolio and market conditions, and reasonable and supportable forecasts for the duration of each respective loan. In addition, other than a few narrow exceptions, ASU 2016-13 requires that all financial instruments subject to the CECL model have some amount of loss reserve to reflect the GAAP principal underlying the CECL model that all loans, debt securities, and similar assets have some inherent risk of loss, regardless of credit quality, subordinate capital, or other mitigating factors. We estimate our CECL reserve primarily using the Weighted Average Remaining Maturity, or WARM method, which has been identified as an acceptable loss-rate method for estimating CECL reserves in the Financial Accounting Standards Board, or FASB, Staff Q&A Topic 326, No. 1. The WARM method requires us to reference historic loan loss data across a comparable data set and apply such loss rate to each of our loans over their expected remaining term, taking into consideration expected economic conditions over the relevant timeframe. We apply the WARM method for the majority of our loan portfolio, which loans share similar risk characteristics. In certain instances, for loans with unique risk characteristics, we may instead use a probability-weighted model that considers the likelihood of default and expected loss given default for each such individual loan. Application of the WARM method to estimate a CECL reserve requires judgment, including (i) the appropriate historical loan loss reference data, (ii) the expected timing and amount of future loan fundings and repayments, and (iii) the current credit quality of our portfolio and our expectations of performance and market conditions over the relevant time period. To estimate the historic loan losses relevant to our portfolio, we have augmented our historical loan performance, with market loan loss data licensed from Trepp LLC. This database includes commercial mortgage-backed securities, or CMBS, issued since January 1, 1999 through May 31, 2022. Within this database, we focused our historical loss reference calculations on the most relevant subset of available CMBS data, which we determined based on loan metrics that are most comparable to our loan portfolio including asset type, geography, and origination loan-to-value, or LTV. We believe this CMBS data, which includes month-over-month loan and property performance, is the most relevant, available, and comparable dataset to our portfolio. Our loans typically include commitments to fund incremental proceeds to our borrowers over the life of the loan, which future funding commitments are also subject to the CECL model. The CECL reserve related to future loan fundings is recorded as a component of Other Liabilities on our consolidated balance sheets. This CECL reserve is estimated using the same process outlined above for our outstanding loan balances, and changes in this component of the CECL reserve will similarly impact our consolidated net income. For both the funded and unfunded portions of our loans, we consider our internal risk rating of each loan as the primary credit quality indicator underlying our assessment. The CECL reserve is measured on a collective basis wherever similar risk characteristics exist within a pool of similar assets. We have identified the following pools and measure the reserve for credit losses using the following methods: • U.S. Loans : WARM method that incorporates a subset of historical loss data, expected weighted-average remaining maturity of our loan pool, and an economic view. • Non-U.S. Loans : WARM method that incorporates a subset of historical loss data, expected weighted average remaining maturity of our loan pool, and an economic view. • Unique Loans : a probability of default and loss given default model, assessed on an individual basis. • Impaired Loans : impairment is indicated when it is deemed probable that we will not be able to collect all amounts due to us pursuant to the contractual terms of the loan. Determining that a loan is impaired requires significant judgment from management and is based on several factors including (i) the underlying collateral performance, (ii) discussions with the borrower, (iii) borrower events of default, and (iv) other facts that impact the borrower’s ability to pay the contractual amounts due under the terms of the loan. If a loan is determined to be impaired, we record the impairment as a component of our CECL reserve by applying the practical expedient for collateral dependent loans. The CECL reserve is assessed on an individual basis for these loans by comparing the estimated fair value of the underlying collateral, less costs to sell, to the book value of the respective loan. These valuations require significant judgments, which include assumptions regarding capitalization rates, discount rates, leasing, creditworthiness of major tenants, occupancy rates, availability and cost of financing, exit plan, loan sponsorship, actions of other lenders, and other factors. Actual losses, if any, could ultimately differ materially from these estimates. We only expect to realize the impairment losses if and when such amounts are deemed nonrecoverable upon a realization event. This is generally at the time a loan is repaid, or in the case of foreclosure, when the underlying asset is sold, but non-recoverability may also be concluded if, in our determination, it is nearly certain that all amounts due will not be collected. Contractual Term and Unfunded Loan Commitments Expected credit losses are estimated over the contractual term of each loan, adjusted for expected prepayments. As part of our quarterly review of our loan portfolio, we assess the expected repayment date of each loan, which is used to determine the contractual term for purposes of computing our CECL reserve. Additionally, the expected credit losses over the contractual period of our loans are subject to the obligation to extend credit through our unfunded loan commitments. The CECL reserve for unfunded loan commitments is adjusted quarterly, as we consider the expected timing of future funding obligations over the estimated life of the loan. The considerations in estimating our CECL reserve for unfunded loan commitments are similar to those used for the related outstanding loan receivables. Credit Quality Indicator Our risk rating is our primary credit quality indicator in assessing our current expected credit loss reserve. We perform a quarterly risk review of our portfolio of loans, and assigns each loan a risk rating based on a variety of factors, including, without limitation, LTV, debt yield, property type, geographic and local market dynamics, physical condition, cash flow volatility, leasing and tenant profile, loan structure and exit plan, and project sponsorship. Based on a 5-point scale, our loans are rated “l” through “5,” from less risk to greater risk, relative to our loan portfolio in the aggregate, which ratings are defined as follows: 1 - Very Low Risk 2 - Low Risk 3 - Medium Risk 4 - High Risk/Potential for Loss: A loan that has a risk of realizing a principal loss. 5 - Impaired/Loss Likely: A loan that has a very high risk of realizing a principal loss or has otherwise incurred a principal loss. Estimation of Economic Conditions In addition to the WARM method computations and probability-weighted models described above, our CECL reserve is also adjusted to reflect our estimation of the current and future economic conditions that impact the performance of the commercial real estate assets securing our loans. These estimations include unemployment rates, interest rates, expectations of inflation and/or recession, and other macroeconomic factors impacting the likelihood and magnitude of potential credit losses for our loans during their anticipated term. In addition to the CMBS data we have licensed from Trepp LLC, we have also licensed certain macroeconomic financial forecasts to inform our view of the potential future impact that broader economic conditions may have on our loan portfolio’s performance. These estimations require significant judgments about future events that, while based on the information available to us as of the balance sheet date, are ultimately indeterminate and the actual economic condition impacting our portfolio could vary significantly from the estimates we made as of June 30, 2022. Derivative Financial Instruments We classify all derivative financial instruments as either other assets or other liabilities on our consolidated balance sheets at fair value. On the date we enter into a derivative contract, we designate each contract as (i) a hedge of a net investment in a foreign operation, or net investment hedge, (ii) a hedge of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability, or cash flow hedge, (iii) a hedge of a recognized asset or liability, or fair value hedge, or (iv) a derivative instrument not to be designated as a hedging derivative, or non-designated hedge. For all derivatives other than those designated as non-designated hedges, we formally document our hedge relationships and designation at the contract’s inception. This documentation includes the identification of the hedging instruments and the hedged items, its risk management objectives, strategy for undertaking the hedge transaction and our evaluation of the effectiveness of its hedged transaction. On a quarterly basis, we also formally assess whether the derivative we designated in each hedging relationship is expected to be, and has been, highly effective in offsetting changes in the value or cash flows of the hedged items. If it is determined that a derivative is not highly effective at hedging the designated exposure, hedge accounting is discontinued and the changes in fair value of the instrument are included in net income prospectively. Our net investment hedges are assessed using a method based on changes in spot exchange rates. Gains and losses, representing hedge components excluded from the assessment of effectiveness, are recognized in interest income on our consolidated statements of operations over the contractual term of our net investment hedges on a systematic and rational basis, as documented at hedge inception in accordance with our accounting policy election. All other changes in the fair value of our derivative instruments that qualify as hedges are reported as a component of accumulated other comprehensive income (loss) on our consolidated financial statements. Deferred gains and losses are reclassified out of accumulated other comprehensive income (loss) and into net income in the same period or periods during which the hedged transaction affects earnings, and are presented in the same line item as the earnings effect of the hedged item. For cash flow hedges, this is typically when the periodic swap settlements are made, while for net investment hedges, this occurs when the hedged item is sold or substantially liquidated. To the extent a derivative does not qualify for hedge accounting and is deemed a non-designated hedge, the changes in its fair value are included in net income concurrently. Secured Debt and Asset-Specific Debt We record investments financed with secured debt or asset-specific debt as separate assets and the related borrowings under any secured debt or asset-specific debt are recorded as separate liabilities on our consolidated balance sheets. Interest income earned on the investments and interest expense incurred on the secured debt or asset-specific debt are reported separately on our consolidated statements of operations. Senior Loan Participations In certain instances, we finance our loans through the non-recourse syndication of a senior loan interest to a third-party. Depending on the particular structure of the syndication, the senior loan interest may remain on our GAAP balance sheet or, in other cases, the sale will be recognized and the senior loan interest will no longer be included in our consolidated financial statements. When these sales are not recognized under GAAP we reflect the transaction by recording a loan participations sold liability on our consolidated balance sheet, however this gross presentation does not impact stockholders’ equity or net income. When the sales are recognized, our balance sheet only includes our remaining subordinate loan and not the non-consolidated senior interest we sold. Term Loans We record our term loans as liabilities on our consolidated balance sheets. Where applicable, any issue discount or transaction expenses are deferred and amortized through the maturity date of the term loans as additional non-cash interest expense. Senior Secured Notes We record our senior secured notes as liabilities on our consolidated balance sheets. Where applicable, any issue discount or transaction expenses are deferred and amortized through the maturity date of the senior secured notes as additional non-cash interest expense. Convertible Notes In August 2020, the FASB issued ASU 2020-06 “Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity,” or ASU 2020-06. ASU 2020-06 simplifies the accounting for convertible debt by eliminating the beneficial conversion and cash conversion accounting models. ASU 2020-06 also updates the earnings per share calculation and requires entities to assume share settlement when the convertible debt can be settled in cash or shares. ASU 2020-06 is effective for fiscal years beginning after December 15, 2021 and is to be adopted through a cumulative-effect adjustment to the opening balance of retained earnings either at the date of adoption or in the first comparative period presented. We adopted ASU 2020-06 on January 1, 2022, using the modified retrospective method of transition. Subsequent to adoption of ASU 2020-06, convertible debt proceeds, unless issued with a substantial premium or an embedded conversion feature, will no longer be allocated between debt and equity components. This reduces the issue discount and results in less non-cash interest expense in our consolidated financial statements. Additionally, subsequent to adoption of ASU 2020-06, shares issuable under our convertible notes are included in diluted earnings per share in our consolidated financial statements, if the effect is dilutive, using the if-converted method, regardless of settlement intent. Where applicable, any issue discount or transaction expenses are deferred and amortized through the maturity date of the convertible notes as additional non-cash interest expense. Deferred Financing Costs The deferred financing costs that are included as a reduction in the net book value of the related liability on our consolidated balance sheets include issuance and other costs related to our debt obligations. These costs are amortized as interest expense using the effective interest method over the life of the related obligations. Fair Value of Financial Instruments The “Fair Value Measurements and Disclosures” Topic o f the FASB, or ASC 820, defines fair value, establishes a framework for measuring fair value, and requires certain disclosures about fair value measurements under GAAP. Specifically, this guidance defines fair value based on exit price, or the price that would be received upon the sale of an asset or the transfer of a liability in an orderly transaction between market participants at the measurement date. ASC 820 also establishes a fair value hierarchy that prioritizes and ranks the level of market price observability used in measuring financial instruments. Market price observability is affected by a number of factors, including the type of financial instrument, the characteristics specific to the financial instrument, and the state of the marketplace, including the existence and transparency of transactions between market participants. Financial instruments with readily available quoted prices in active markets generally will have a higher degree of market price observability and a lesser degree of judgment used in measuring fair value. Financial instruments measured and reported at fair value are classified and disclosed based on the observability of inputs used in the determination, as follows: • Level 1: Generally includes only unadjusted quoted prices that are available in active markets for identical financial instruments as of the reporting date. • Level 2: Pricing inputs include quoted prices in active markets for similar instruments, quoted prices in less active or inactive markets for identical or similar instruments where multiple price quotes can be obtained, and other observable inputs, such as interest rates, yield curves, credit risks, and default rates. • Level 3: Pricing inputs are unobservable for the financial instruments and include situations where there is little, if any, market activity for the financial instrument. These inputs require significant judgment or estimation by management of third-parties when determining fair value and generally represent anything that does not meet the criteria of Levels 1 and 2. The estimated value of each asset reported at fair value using Level 3 inputs is determined by an internal committee composed of members of our senior management, including our Chief Executive Officer, Chief Financial Officer, and other senior officers. Certain of our other assets are reported at fair value, as of quarter-end, either (i) on a recurring basis or (ii) on a nonrecurring basis, as a result of impairment or other events. Our assets that are recorded at fair value are discussed further in Note 17. We generally value our assets recorded at fair value by either (i) discounting expected cash flows based on assumptions regarding the collection of principal and interest and estimated market rates, or (ii) obtaining assessments from third-party dealers. For collateral-dependent loans that are identified as impaired, we measure impairment by comparing our estimation of the fair value of the underlying collateral, less costs to sell, to the book value of the respective loan. These valuations require significant judgments, which include assumptions regarding capitalization rates, discount rates, leasing, creditworthiness of major tenants, occupancy rates, availability and cost of financing, exit plan, loan sponsorship, actions of other lenders, and other factors. As of June 30, 2022, we had a $54.9 million CECL reserve specifically related to one of our loans receivable with an outstanding principal balance of $286.3 million, net of cost-recovery proceeds. The CECL reserve was recorded based on our estimation of the fair value of the loan’s underlying collateral as of June 30, 2022. This loan receivable is therefore measured at fair value on a nonrecurring basis using significant unobservable inputs, and is classified as a Level 3 asset in the fair value hierarchy. The significant unobservable inputs used to estimate the fair value of this loan receivable include the exit capitalization rate assumption of 4.80% used to forecast the future sale price of the underlying real estate collateral and the unlevered discount rate of 8.30%, in addition to reviewing comparable sales on a per-key basis. We are also required by GAAP to disclose fair value information about financial instruments, which are not otherwise reported at fair value in our consolidated balance sheet, to the extent it is practicable to estimate a fair value for those instruments. These disclosure requirements exclude certain financial instruments and all non-financial instruments. The following methods and assumptions are used to estimate the fair value of each class of financial instruments, for which it is practicable to estimate that value: • Cash and cash equivalents: The carrying amount of cash and cash equivalents approximates fair value. • Loans receivable, net: The fair values of these loans were estimated using a discounted cash flow methodology, taking into consideration various factors including capitalization rates, discount rates, leasing, credit worthiness of major tenants, occupancy rates, availability and cost of financing, exit plan, loan sponsorship, actions of other lenders, and other factors. • Debt securities held-to-maturity: The fair value of these instruments was estimated by utilizing third-party pricing service providers assuming the securities are not sold prior to maturity. In determining the value of a particular investment, pricing service providers may use broker-dealer quotations, reported trades, or valuation estimates from their internal pricing models to determine the reported price. • Derivative financial instruments: The fair value of our foreign currency and interest rate contracts was estimated using advice from a third-party derivative specialist, based on contractual cash flows and observable inputs comprising foreign currency rates and credit spreads. • Secured debt, net: The fair value of these instruments was estimated based on the rate at which a similar credit facility would currently be priced. • Securitized debt obligations, net: The fair value of these instruments was estimated by utilizing third-party pricing service providers. In determining the value of a particular investment, pricing service providers may use broker-dealer quotations, reported trades, or valuation estimates from their internal pricing models to determine the reported price. • Asset-specific debt, net: The fair value of these instruments was estimated based on the rate at which a similar agreement would currently be priced. • Loan participations sold, net: The fair value of these instruments was estimated based on the value of the related loan receivable asset. • Term loans, net: The fair value of these instruments was estimated by utilizing third-party pricing service providers. In determining the value of a particular investment, pricing service providers may use broker-dealer quotations, reported trades, or valuation estimates from their internal pricing models to determine the reported price. • Senior secured notes, net: The fair value of these instru |
Loans Receivable, Net
Loans Receivable, Net | 6 Months Ended |
Jun. 30, 2022 | |
Receivables [Abstract] | |
Loans Receivable, Net | LOANS RECEIVABLE, NET The following table details overall statistics for our loans receivable portfolio ($ in thousands): June 30, 2022 December 31, 2021 Number of loans 205 188 Principal balance $ 25,001,207 $ 22,156,437 Net book value $ 24,698,522 $ 21,878,338 Unfunded loan commitments (1) $ 4,623,298 $ 4,180,128 Weighted-average cash coupon (2) + 3.28 % + 3.19 % Weighted-average all-in yield (2) + 3.64 % + 3.52 % Weighted-average maximum maturity (years) (3) 3.5 3.4 (1) Unfunded commitments will primarily be funded to finance our borrowers’ construction or development of real estate-related assets, capital improvements of existing assets, or lease-related expenditures. These commitments will generally be funded over the term of each loan, subject in certain cases to an expiration date. (2) The weighted-average cash coupon and all-in yield are expressed as a spread over the relevant floating benchmark rates, which include USD LIBOR, SOFR, SONIA, GBP LIBOR, EURIBOR, and other indices, as applicable to each loan. As of June 30, 2022, substantially all of our loans by principal balance earned a floating rate of interest, primarily indexed to USD LIBOR. As of December 31, 2021, 99.5% of our loans by total loan exposure earned a floating rate of interest, primarily indexed to USD LIBOR. The other 0.5% of our loans earned a fixed rate of interest. In addition to cash coupon, all-in yield includes the amortization of deferred origination and extension fees, loan origination costs, and purchase discounts, as well as the accrual of exit fees. Excludes one loan accounted for under the cost-recovery method. (3) Maximum maturity assumes all extension options are exercised by the borrower, however our loans may be repaid prior to such date. As of June 30, 2022, 58% of our loans by principal balance were subject to yield maintenance or other prepayment restrictions and 42% were open to repayment by the borrower without penalty. As of December 31, 2021, 56% of our loans by principal balance were subject to yield maintenance or other prepayment restrictions and 44% were open to repayment by the borrower without penalty. The following table details the index rate floors for our loans receivable portfolio as of June 30, 2022 ($ in thousands): Loans Receivable Principal Balance Index Rate Floors USD Non-USD (1) Total Fixed Rate $ 37,500 $ — $ 37,500 0.00% or no floor (2) 3,929,778 7,416,949 11,346,727 0.01% to 1.00% floor 9,483,006 700,123 10,183,129 1.01% to 1.50% floor 2,421,615 59,366 2,480,981 1.51% to 2.00% floor 687,584 — 687,584 2.01% or more floor 216,126 49,160 265,286 Total (3) $ 16,775,609 $ 8,225,598 $ 25,001,207 (1) Includes Euro, British Pound Sterling, Swedish Krona, Australian Dollar, Canadian Dollar, Swiss Franc, and Danish Krone currencies. (2) Includes a $286.3 million loan accounted for under the cost-recovery method. (3) As of June 30, 2022, the weighted-average index rate floor of our loan portfolio was 0.32%. Excluding 0.0% index rate floors and loans with no floor, the weighted-average index rate floor was 0.58%. Activity relating to our loans receivable portfolio was as follows ($ in thousands): Principal Balance Deferred Fees / Other Items (1) Net Book Value Loans Receivable, as of December 31, 2021 $ 22,156,437 $ (153,420) $ 22,003,017 Loan fundings 5,589,977 — 5,589,977 Loan repayments and sales (2,101,793) — (2,101,793) Unrealized (loss) gain on foreign currency translation (643,414) 4,851 (638,563) Deferred fees and other items — (58,716) (58,716) Amortization of fees and other items — 37,624 37,624 Loans Receivable, as of June 30, 2022 $ 25,001,207 $ (169,661) $ 24,831,546 CECL reserve (133,024) Loans Receivable, net, as of June 30, 2022 $ 24,698,522 (1) Other items primarily consist of purchase and sale discounts or premiums, exit fees, and deferred origination expenses. The tables below detail the property type and geographic distribution of the properties securing the loans in our portfolio ($ in thousands): June 30, 2022 Property Type Number of Loans Net Book Value Total Loan Exposure (1) Percentage of Portfolio Office 67 $ 9,735,435 $ 10,771,841 41% Multifamily 83 6,392,372 6,500,608 25 Hospitality 29 4,979,191 5,014,033 19 Industrial 8 1,547,660 1,636,239 6 Retail 9 1,105,177 1,145,756 4 Other 9 1,071,711 1,440,984 5 Total loans receivable 205 $ 24,831,546 $ 26,509,461 100% CECL reserve (133,024) Loans receivable, net $ 24,698,522 Geographic Location Number of Loans Net Book Value Total Loan Exposure (1) Percentage of Portfolio United States Sunbelt 78 $ 6,530,957 $ 6,792,543 26% Northeast 40 5,341,968 5,667,952 21 West 34 3,476,401 4,394,168 17 Midwest 10 1,001,165 1,107,264 4 Northwest 6 317,396 321,937 1 Subtotal 168 16,667,887 18,283,864 69 International United Kingdom 20 3,179,066 3,210,116 12 Australia 5 1,451,073 1,463,974 6 Spain 4 1,241,840 1,247,087 5 Ireland 2 1,103,546 1,109,382 4 Sweden 1 482,377 486,202 2 Canada 1 49,071 49,160 — Other Europe 4 656,686 659,676 2 Subtotal 37 8,163,659 8,225,597 31 Total loans receivable 205 $ 24,831,546 $ 26,509,461 100% CECL reserve (133,024) Loans receivable, net $ 24,698,522 (1) In certain instances, we finance our loans through the non-recourse sale of a senior loan interest that is not included in our consolidated financial statements. See Note 2 for further discussion. Total loan exposure encompasses the entire loan we originated and financed, including $1.5 billion of such non-consolidated senior interests as of June 30, 2022. December 31, 2021 Property Type Number of Loans Net Book Value Total Loan Exposure (1)(2) Percentage of Portfolio Office 65 $ 9,473,039 $ 10,425,026 44% Multifamily 75 5,721,260 5,771,517 24 Hospitality 25 3,427,245 3,540,391 15 Industrial 6 1,102,452 1,185,606 5 Retail 8 871,241 909,970 4 Other 9 1,407,780 1,836,601 8 Total loans receivable 188 $ 22,003,017 $ 23,669,111 100% CECL reserve (124,679) Loans receivable, net $ 21,878,338 Geographic Location Number of Loans Net Book Value Total Loan Exposure (1)(2) Percentage of Portfolio United States Sunbelt 71 $ 5,907,230 $ 6,206,216 26% Northeast 37 4,615,076 4,934,295 21 West 33 3,520,942 4,199,208 18 Midwest 10 1,063,202 1,113,959 5 Northwest 5 251,121 252,700 1 Subtotal 156 15,357,571 16,706,378 71 International United Kingdom 17 2,342,146 2,598,033 11 Spain 4 1,374,364 1,380,763 6 Ireland 1 1,210,375 1,216,864 5 Sweden 1 546,319 551,149 2 Australia 4 504,668 509,885 2 Canada 2 68,558 68,478 — Other Europe 3 599,016 637,561 3 Subtotal 32 6,645,446 6,962,733 29 Total loans receivable 188 $ 22,003,017 $ 23,669,111 100% CECL reserve (124,679) Loans receivable, net $ 21,878,338 (1) In certain instances, we finance our loans through the non-recourse sale of a senior loan interest that is not included in our consolidated financial statements. See Note 2 for further discussion. Total loan exposure encompasses the entire loan we originated and financed, including $1.5 billion of such non-consolidated senior interests as of December 31, 2021. (2) Excludes investment exposure to the $379.3 million 2018 Single Asset Securitization. See Note 4 for details of the subordinate position we own in the 2018 Single Asset Securitization . Loan Risk Ratings As further described in Note 2, we evaluate our loan portfolio on a quarterly basis. In conjunction with our quarterly loan portfolio review, we assess the risk factors of each loan, and assign a risk rating based on several factors. Factors considered in the assessment include, but are not limited to, risk of loss, current LTV, debt yield, collateral performance, structure, exit plan, and sponsorship. Loans are rated “1” (less risk) through “5” (greater risk), which ratings are defined in Note 2. The following table allocates the principal balance and net book value of our loans receivable based on our internal risk ratings ($ in thousands): June 30, 2022 December 31, 2021 Risk Rating Number of Loans Net Book Value Total Loan Exposure (1) Number of Loans Net Book Value Total Loan Exposure (1)(2) 1 12 $ 836,222 $ 868,722 8 $ 642,776 $ 645,854 2 39 5,856,051 6,178,959 28 5,200,533 5,515,250 3 143 15,773,096 17,089,166 141 13,604,027 14,944,045 4 10 2,081,368 2,086,305 10 2,270,872 2,277,653 5 1 284,809 286,309 1 284,809 286,309 Total loans receivable 205 $ 24,831,546 $ 26,509,461 188 $ 22,003,017 $ 23,669,111 CECL reserve (133,024) (124,679) Loans receivable, net $ 24,698,522 $ 21,878,338 (1) In certain instances, we finance our loans through the non-recourse sale of a senior loan interest that is not included in our consolidated financial statements. See Note 2 for further discussion. Total loan exposure encompasses the entire loan we originated and financed, including $1.5 billion of such non-consolidated senior interests as of both June 30, 2022 and December 31, 2021, respectively. (2) Excludes investment exposure to the 2018 Single Asset Securitization of $379.3 million as of December 31, 2021. See Note 4 for details of the subordinate position we own in the 2018 Single Asset Securitization. The weighted-average risk rating of our total loan exposure was 2.8 as of both June 30, 2022 and December 31, 2021. Current Expected Credit Loss Reserve The CECL reserve required under GAAP reflects our current estimate of potential credit losses related to the loans and debt securities included in our consolidated balance sheets. Refer to Note 2 for further discussion of our CECL reserve. The following table presents the activity in our loans receivable CECL reserve by investment pool for the three and six months ended June 30, 2022 and 2021 ($ in thousands): U.S. Loans Non-U.S. Loans Unique Loans Impaired Loans Total Loans Receivable, Net CECL reserve as of December 31, 2021 $ 26,885 $ 10,263 $ 32,657 $ 54,874 $ 124,679 Decrease in CECL reserve (644) (54) (1,760) — (2,458) CECL reserve as of March 31, 2022 $ 26,241 $ 10,209 $ 30,897 $ 54,874 $ 122,221 Increase in CECL reserve 7,070 1,135 2,598 — 10,803 CECL reserve as of June 30, 2022 $ 33,311 $ 11,344 $ 33,495 $ 54,874 $ 133,024 CECL reserve as of December 31, 2020 $ 42,995 $ 27,734 $ 33,159 $ 69,661 $ 173,549 Increase (decrease) in CECL reserve 1,539 (3,134) 146 — (1,449) CECL reserve as of March 31, 2021 $ 44,534 $ 24,600 $ 33,305 $ 69,661 $ 172,100 Decrease in CECL reserve (26,861) (15,771) (523) — (43,155) CECL reserve as of June 30, 2021 $ 17,673 $ 8,829 $ 32,782 $ 69,661 $ 128,945 Previously, we entered into loan modifications related to a multifamily asset in New York City, which were classified as troubled debt restructurings under GAAP. During the three months ended December 31, 2021, the borrower committed significant additional capital to the property and engaged new management to oversee property operations, and we reduced the loan's outstanding principal balance to $37.5 million, which remains unchanged as of June 30, 2022. As a result of the modification, during the three months ended December 31, 2021, we charged-off $14.4 million of the $14.8 million asset-specific CECL reserve we recorded on this loan, and reversed the remaining $360,000 CECL reserve. We have no remaining asset-specific CECL reserve against this loan as of June 30, 2022. The loan is paying interest income current and we resumed income accrual for this loan as of December 31, 2021. No income was recorded on this loan during the six months ended June 30, 2021. Previously, we entered into a loan modification related to a hospitality asset in New York City, which is classified as a troubled debt restructuring under GAAP. As of June 30, 2022, this loan has an outstanding principal balance of $286.3 million, net of cost-recovery proceeds, and a CECL reserve of $54.9 million, which was recorded based on our estimation of the fair value of the loan’s underlying collateral as of June 30, 2022. No income was recorded on this loan during both the six months ended June 30, 2022 and 2021. Our primary credit quality indicator is our risk ratings, which are further discussed above. The following tables present the net book value of our loan portfolio as of June 30, 2022 and December 31, 2021, respectively, by year of origination, investment pool, and risk rating ($ in thousands): Net Book Value of Loans Receivable by Year of Origination (1) As of June 30, 2022 Risk Rating 2022 2021 2020 2019 2018 Prior Total U.S. loans 1 $ 114,778 $ 469,851 $ 6,700 $ 199,931 $ — $ 44,962 $ 836,222 2 — 1,782,773 488,540 152,672 1,384,866 — 3,808,851 3 2,056,145 6,111,427 266,095 941,151 1,110,221 519,455 11,004,494 4 — — — 96,542 535,707 150,331 782,580 5 — — — — — — — Total U.S. loans $ 2,170,923 $ 8,364,051 $ 761,335 $ 1,390,296 $ 3,030,794 $ 714,748 $ 16,432,147 Non-U.S. loans 1 $ — $ — $ — $ — $ — $ — $ — 2 163,027 619,169 92,847 1,172,157 — — 2,047,200 3 971,870 1,495,245 — 847,533 146,416 — 3,461,064 4 — — — 325,688 — — 325,688 5 — — — — — — — Total Non-U.S. loans $ 1,134,897 $ 2,114,414 $ 92,847 $ 2,345,378 $ 146,416 $ — $ 5,833,952 Unique loans 1 $ — $ — $ — $ — $ — $ — $ — 2 — — — — — — — 3 1,130,039 — — — 177,499 — 1,307,538 4 — — — 290,945 682,155 — 973,100 5 — — — — — — — Total unique loans $ 1,130,039 $ — $ — $ 290,945 $ 859,654 $ — $ 2,280,638 Impaired loans 1 $ — $ — $ — $ — $ — $ — $ — 2 — — — — — — — 3 — — — — — — — 4 — — — — — — — 5 — — — — 284,809 — 284,809 Total impaired loans $ — $ — $ — $ — $ 284,809 $ — $ 284,809 Total loans receivable 1 $ 114,778 $ 469,851 $ 6,700 $ 199,931 $ — $ 44,962 $ 836,222 2 163,027 2,401,942 581,387 1,324,829 1,384,866 — 5,856,051 3 4,158,054 7,606,672 266,095 1,788,684 1,434,136 519,455 15,773,096 4 — — — 713,175 1,217,862 150,331 2,081,368 5 — — — — 284,809 — 284,809 Total loans receivable $ 4,435,859 $ 10,478,465 $ 854,182 $ 4,026,619 $ 4,321,673 $ 714,748 $ 24,831,546 CECL reserve (133,024) Loans receivable, net $ 24,698,522 (1) Date loan was originated or acquired by us. Origination dates are subsequently updated to reflect material loan modifications. Net Book Value of Loans Receivable by Year of Origination (1)(2) As of December 31, 2021 Risk Rating 2021 2020 2019 2018 2017 Prior Total U.S. loans 1 $ 125,873 $ — $ 196,017 $ 72,752 $ 248,134 $ — $ 642,776 2 876,536 427,839 221,513 1,134,176 354,775 82,274 3,097,113 3 7,511,883 358,448 1,109,170 1,116,872 292,520 228,264 10,617,157 4 — — 96,539 534,938 63,358 89,439 784,274 5 — — — — — — — Total U.S. loans $ 8,514,292 $ 786,287 $ 1,623,239 $ 2,858,738 $ 958,787 $ 399,977 $ 15,141,320 Non-U.S. loans 1 $ — $ — $ — $ — $ — $ — $ — 2 698,130 98,412 1,306,878 — — — 2,103,420 3 1,403,110 — 932,939 394,949 — — 2,730,998 4 — — 343,030 — — — 343,030 5 — — — — — — — Total Non-U.S. loans $ 2,101,240 $ 98,412 $ 2,582,847 $ 394,949 $ — $ — $ 5,177,448 Unique loans 1 $ — $ — $ — $ — $ — $ — $ — 2 — — — — — — — 3 — — — 197,018 — 58,854 255,872 4 — — 322,787 820,781 — — 1,143,568 5 — — — — — — — Total unique loans $ — $ — $ 322,787 $ 1,017,799 $ — $ 58,854 $ 1,399,440 Impaired loans 1 $ — $ — $ — $ — $ — $ — $ — 2 — — — — — — — 3 — — — — — — — 4 — — — — — — — 5 — — — 284,809 — — 284,809 Total impaired loans $ — $ — $ — $ 284,809 $ — $ — $ 284,809 Total loans receivable 1 $ 125,873 $ — $ 196,017 $ 72,752 $ 248,134 $ — $ 642,776 2 1,574,666 526,251 1,528,391 1,134,176 354,775 82,274 5,200,533 3 8,914,993 358,448 2,042,109 1,708,839 292,520 287,118 13,604,027 4 — — 762,356 1,355,719 63,358 89,439 2,270,872 5 — — — 284,809 — — 284,809 Total loans receivable $ 10,615,532 $ 884,699 $ 4,528,873 $ 4,556,295 $ 958,787 $ 458,831 $ 22,003,017 CECL reserve (124,679) Loans receivable, net $ 21,878,338 (1) Date loan was originated or acquired by us. Origination dates are subsequently updated to reflect material loan modifications. (2) Excludes the $78.0 million net book value of our held-to-maturity debt securities which represents our subordinate position we own in the 2018 Single Asset Securitization, and is included in other assets on our consolidated balance sheets. See Note 4 for details of the subordinate position we own in the 2018 Single Asset Securitization. |
Other Assets and Liabilities
Other Assets and Liabilities | 6 Months Ended |
Jun. 30, 2022 | |
Deferred Costs, Capitalized, Prepaid, Other Assets and Other Liabilities Disclosure [Abstract] | |
Other Assets and Liabilities | OTHER ASSETS AND LIABILITIES Other Assets The following table details the components of our other assets ($ in thousands): June 30, 2022 December 31, 2021 Loan portfolio payments held by servicer (1) $ 252,401 $ 77,624 Accrued interest receivable 123,517 86,101 Derivative assets 83,982 30,531 Accounts receivable and other assets 503 572 Prepaid expenses 742 956 Debt securities held-to-maturity (2) — 78,083 CECL reserve — (70) Debt securities held-to-maturity, net — 78,013 Total $ 461,145 $ 273,797 (1) Primarily represents loan principal held by our third-party loan servicer as of the balance sheet date which were remitted to us during the subsequent remittance cycle. (2) Represents the subordinate position we own in the 2018 Single Asset Securitization, which held aggregate loan assets of $379.3 million as of December 31, 2021, with a yield to full maturity of L+10.0% and a maximum maturity date of June 9, 2025, assuming all extension options are exercised by the borrower. During the six months ended June 30, 2022, the 2018 Single Asset Securitization was liquidated upon full repayment of its collateral and all senior securities outstanding. Refer to Note 18 for additional discussion. Current Expected Credit Loss Reserve The CECL reserve required under GAAP reflects our current estimate of potential credit losses related to the loans and debt securities included in our consolidated balance sheets. Refer to Note 2 for further discussion of our CECL reserve. The following table presents the activity in our debt securities CECL reserve for the three and six months ended June 30, 2022 and 2021 ($ in thousands): Debt Securities Held-To-Maturity Total CECL reserve as of December 31, 2021 $ 70 Decrease in CECL reserve (70) CECL reserve as March 31, 2022 $ — Decrease in CECL reserve — CECL reserve as of June 30, 2022 $ — CECL reserve as of December 31, 2020 $ 1,723 Decrease in CECL reserve (834) CECL reserve as of March 31, 2021 $ 889 Decrease in CECL reserve (767) CECL reserve as of June 30, 2021 $ 122 Other Liabilities The following table details the components of our other liabilities ($ in thousands): June 30, 2022 December 31, 2021 Accrued dividends payable $ 105,583 $ 104,271 Accrued interest payable 55,334 29,851 Accrued management and incentive fees payable 27,065 28,373 Secured debt repayments pending servicer remittance (1) 22,117 47,664 Current expected credit loss reserve for unfunded loan commitments (2) 8,434 6,263 Accounts payable and other liabilities 7,899 9,046 Derivative liabilities 2,589 5,890 Total $ 229,021 $ 231,358 (1) Represents pending transfers from our third-party loan servicer that were remitted to our banking counterparties during the subsequent remittance cycle. (2) Represents the CECL reserve related to our unfunded loan commitments. See Note 2 for further discussion of the CECL reserve. Current Expected Credit Loss Reserve for Unfunded Loan Commitments As of June 30, 2022, we had unfunded commitments of $4.6 billion related to 125 loans receivable. The expected credit losses over the contractual period of our loans are subject to the obligation to extend credit through our unfunded loan commitments. See Note 2 for further discussion of the CECL reserve related to our unfunded loan commitments, and Note 20 for further discussion of our unfunded loan commitments. The following table presents the activity in the CECL reserve related to our unfunded loan commitments by investment pool for the three and six months ended June 30, 2022 and 2021 ($ in thousands): U.S. Loans Non-U.S. Loans Unique Loans Impaired Loans Total Unfunded Loan Commitments CECL reserve as of December 31, 2021 $ 4,072 $ 2,191 $ — $ — $ 6,263 Increase (decrease) in CECL reserve 209 (218) — — (9) CECL reserve as of March 31, 2022 $ 4,281 $ 1,973 $ — $ — $ 6,254 Increase in CECL reserve 2,042 138 — — 2,180 CECL reserve as of June 30, 2022 $ 6,323 $ 2,111 $ — $ — $ 8,434 CECL reserve as of December 31, 2020 $ 6,953 $ 2,994 $ 84 $ — $ 10,031 Increase (decrease) in CECL reserve 216 778 (4) — 990 CECL reserve as of March 31, 2021 $ 7,169 $ 3,772 $ 80 $ — $ 11,021 Decrease in CECL reserve (4,315) (2,632) (37) — (6,984) CECL reserve as of June 30, 2021 $ 2,854 $ 1,140 $ 43 $ — $ 4,037 |
Secured Debt, Net
Secured Debt, Net | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Secured Debt, Net | SECURED DEBT, NET Our secured debt includes our secured credit facilities and acquisition facility. During the six months ended June 30, 2022, we obtained approval for $3.7 billion of new borrowings against $4.7 billion of collateral assets. Additionally, during the six months ended June 30, 2022, we (i) entered into one new secured credit facility providing $1.0 billion of credit capacity and (ii) we increased the size of six existing secured credit facilities providing an aggregate $1.4 billion of additional credit capacity. The following table details our secured debt ($ in thousands): Secured Debt Borrowings Outstanding June 30, 2022 December 31, 2021 Secured credit facilities $ 13,932,436 $ 12,299,580 Acquisition facility — — Total secured debt $ 13,932,436 $ 12,299,580 Deferred financing costs (1) (26,487) (19,538) Net book value of secured debt $ 13,905,949 $ 12,280,042 (1) Costs incurred in connection with our secured debt are recorded on our consolidated balance sheets when incurred and recognized as a component of interest expense over the life of each related facility. Secured Credit Facilities Our secured credit facilities are bilateral agreements we use to finance diversified pools of senior loan collateral with sufficient flexibility to accommodate our investment and asset management strategy. The facilities are uniformly structured to provide currency, index, and term-matched financing without capital markets based mark-to-market provisions. The following table details our secured credit facilities by spread over the applicable base rates as of June 30, 2022 ($ in thousands): June 30, 2022 Recourse Limitation Currency Lenders (1) Borrowings Wtd Avg. Maturity (2) Loan Count Collateral (3) Wtd Avg. Maturity (4) Wtd. Avg. Range USD 14 $ 8,101,964 2/8/2026 142 $ 11,873,368 2/8/2026 34% 25% - 100% EUR 6 2,119,463 7/9/2025 10 2,818,786 7/17/2025 45% 25% - 100% GBP 6 2,057,777 1/15/2026 18 2,698,806 1/17/2026 26% 25% - 50% Others (5) 4 1,653,232 5/23/2027 8 2,094,593 5/8/2027 25% 25% Total 14 $ 13,932,436 2/27/2026 177 $ 19,485,553 2/24/2026 34% 25% - 100% (1) Represents the number of lenders with fundings advanced in each respective currency, as well as the total number of facility lenders. (2) Based on the earlier of (i) the maximum maturity date of each secured credit facility, or (ii) the maximum maturity date of the collateral loans. (3) Represents the principal balance of the collateral assets. (4) Maximum maturity assumes all extension options are exercised by the borrower, however our loans may be repaid prior to such date. (5) Includes Australian Dollar, Canadian Dollar, Danish Krone, Swedish Krona, and Swiss Franc currencies. The availability of funding under our secured credit facilities is based on the amount of approved collateral, which collateral is proposed by us in our discretion and approved by the respective counterparty in its discretion, resulting in a mutually agreed collateral portfolio construction. Certain structural elements of our secured credit facilities, including the limitation on recourse to us and facility economics are influenced by the specific collateral portfolio construction of each facility, and therefore vary within and among the facilities. The following tables detail the spread of our secured debt as of June 30, 2022 and December 31, 2021 ($ in thousands): Six Months Ended June 30, 2022 June 30, 2022 Spread (1) New Financings (2) Total Borrowings Wtd. Avg. All-in Cost (1)(3)(4) Collateral (5) Wtd. Avg. All-in Yield (1)(3) Net Interest Margin (6) + 1.50% or less $ 1,329,670 $ 8,110,825 +1.52 % $ 10,957,198 +3.19 % +1.67 % + 1.51% to + 1.75% 322,306 2,630,077 +1.88 % 3,986,106 +3.58 % +1.70 % + 1.76% to + 2.00% 480,738 1,404,894 +2.16 % 2,077,065 +4.15 % +1.99 % + 2.01% or more 927,553 1,786,640 +2.57 % 2,465,184 +4.84 % +2.27 % Total $ 3,060,267 $ 13,932,436 +1.79 % $ 19,485,553 +3.58 % +1.79 % Year Ended December 31, 2021 December 31, 2021 Spread (1) New Financings (2) Total Borrowings Wtd. Avg. All-in Cost (1)(3)(4) Collateral (5) Wtd. Avg. All-in Yield (1)(3) Net Interest Margin (6) + 1.50% or less $ 5,306,925 $ 7,746,026 +1.52 % $ 10,193,801 +3.18 % +1.66 % + 1.51% to + 1.75% 1,477,177 2,710,587 +1.88 % 3,977,492 +3.55 % +1.67 % + 1.76% to + 2.00% 668,470 998,781 +2.13 % 1,458,074 +4.28 % +2.15 % + 2.01% or more 310,991 844,186 +2.49 % 1,413,014 +4.75 % +2.26 % Total $ 7,763,563 $ 12,299,580 +1.72 % $ 17,042,381 +3.49 % +1.77 % (1) The spread, all-in cost, and all-in yield are expressed over the relevant floating benchmark rates, which include USD LIBOR, SOFR, SONIA, GBP LIBOR, EURIBOR, and other indices as applicable. (2) Represents borrowings outstanding as of June 30, 2022 and December 31, 2021, respectively, for new financings during the six months ended June 30, 2022 and year ended December 31, 2021, respectively, based on the date collateral was initially pledged to each credit facility. (3) In addition to spread, the cost includes the associated deferred fees and expenses related to the respective borrowings. In addition to cash coupon, all-in yield includes the amortization of deferred origination and extension fees, loan origination costs, and purchase discounts, as well as the accrual of exit fees. (4) Represents the weighted-average all-in cost as of June 30, 2022 and December 31, 2021, respectively, and is not necessarily indicative of the spread applicable to recent or future borrowings. (5) Represents the principal balance of the collateral assets. (6) Represents the difference between the weighted-average all-in yield and weighted-average all-in cost. Our secured credit facilities generally permit us to increase or decrease the amount advanced against the pledged collateral in our discretion within certain maximum/minimum amounts and frequency limitations. As of June 30, 2022, there was an aggregate $1.0 billion available to be drawn at our discretion under our credit facilities. Acquisition Facility We have a $250.0 million full recourse secured credit facility that is designed to finance eligible first mortgage originations for up to nine months as a bridge to term financing without obtaining discretionary lender approval. The cost of borrowing under the facility is variable, dependent on the type of loan collateral, and its maturity date is April 4, 2023. During the six months ended June 30, 2022, we had no borrowings under the acquisition facility. During the three months ended June 30, 2022, we recorded interest expense of $303,000, including $81,000 of amortization of deferred fees and expenses. During the six months ended June 30, 2022, we recorded interest expense of $608,000, including $168,000 of amortization of deferred fees and expenses. During the year ended December 31, 2021, we had no borrowings under the acquisition facility. During the three months ended June 30, 2021, we recorded interest expense of $221,000 including $96,000 of amortization of deferred fees and expenses. During the six months ended June 30, 2021 we recorded interest expense of $618,000, including $178,000 of amortization of deferred fees and expenses. Financial Covenants We are subject to the following financial covenants related to our secured debt: (i) our ratio of earnings before interest, taxes, depreciation, and amortization, or EBITDA, to fixed charges, as defined in the agreements, shall be not less than 1.4 to 1.0; (ii) our tangible net worth, as defined in the agreements, shall not be less than $3.5 billion as of each measurement date plus 75% to 85% of the net cash proceeds of future equity issuances subsequent to June 30, 2022; (iii) cash liquidity shall not be less than the greater of (x) $10.0 million or (y) no more than 5% of our recourse indebtedness; and (iv) our indebtedness shall not exceed 83.33% of our total assets. As of June 30, 2022 and December 31, 2021, we were in compliance with these covenants. |
Securitized Debt Obligations, N
Securitized Debt Obligations, Net | 6 Months Ended |
Jun. 30, 2022 | |
Loans Managed, Securitized or Asset-Backed Financing Arrangement [Abstract] | |
Securitized Debt Obligations, Net | SECURITIZED DEBT OBLIGATIONS, NET We have financed certain pools of our loans through collateralized loan obligations, which include the 2021 FL4 CLO, 2020 FL3 CLO, and 2020 FL2 CLO or collectively, the CLOs. The CLOs are consolidated in our financial statements and have issued securitized debt obligations that are non-recourse to us. Refer to Note 18 for further discussion of our CLOs. The following tables detail our securitized debt obligations ($ in thousands): June 30, 2022 Securitized Debt Obligations Count Principal Balance Book Value Wtd. Avg. Yield/Cost (1)(2) Term (3) 2021 FL4 Collateralized Loan Obligation Collateral assets 32 $ 1,000,000 $ 1,000,000 + 3.51 % April 2025 Financing provided 1 803,750 798,466 + 1.57 % May 2038 2020 FL3 Collateralized Loan Obligation Collateral assets 16 1,000,000 1,000,000 + 3.21 % October 2024 Financing provided 1 808,750 805,362 + 2.03 % November 2037 2020 FL2 Collateralized Loan Obligation Collateral assets 18 1,500,000 1,500,000 + 3.31 % September 2024 Financing provided 1 1,243,125 1,238,073 + 1.39 % February 2038 Total Collateral assets 66 $ 3,500,000 $ 3,500,000 + 3.34 % Financing provided (4) 3 $ 2,855,625 $ 2,841,901 + 1.62 % (1) In addition to cash coupon, all-in yield includes the amortization of deferred origination and extension fees, loan origination costs, purchase discounts, and accrual of exit fees. (2) The weighted-average all-in yield and cost are expressed as a spread over the relevant floating benchmark rates, which include USD LIBOR and one-month SOFR, as applicable to each securitized debt obligation. As of June 30, 2022, the floating benchmark rate for the financing provided on the 2020 FL3 and 2020 FL2 CLOs is one-month SOFR, plus a credit spread adjustment of 0.11%. As of June 30, 2022, one-month SOFR was 1.69% and one-month USD LIBOR was 1.79%. (3) Loan term represents weighted-average final maturity, assuming all extension options are exercised by the borrower. Repayments of securitized debt obligations are tied to timing of the related collateral loan asset repayments. The term of these obligations represents the rated final distribution date of the securitizations. (4) During the three and six months ended June 30, 2022, we recorded $15.5 million and $26.5 million, respectively, of interest expense related to our securitized debt obligations. December 31, 2021 Securitized Debt Obligations Count Principal Balance Book Value Wtd. Avg. Yield/Cost (1)(2) Term (3) 2021 FL4 Collateralized Loan Obligation Collateral assets 34 $ 1,000,000 $ 1,000,000 + 3.42 % October 2024 Financing provided 1 803,750 797,373 + 1.66 % May 2038 2020 FL3 Collateralized Loan Obligation Collateral assets 18 1,000,000 1,000,000 + 3.06 % May 2024 Financing provided 1 808,750 804,096 + 2.10 % November 2037 2020 FL2 Collateralized Loan Obligation Collateral assets 21 1,500,000 1,500,000 + 3.15 % March 2024 Financing provided 1 1,243,125 1,236,593 + 1.45 % February 2038 Total Collateral assets 73 $ 3,500,000 $ 3,500,000 +3.20 % Financing provided (4) 3 $ 2,855,625 $ 2,838,062 +1.69 % (1) In addition to cash coupon, all-in yield includes the amortization of deferred origination and extension fees, loan origination costs, purchase discounts, and accrual of exit fees. (2) The weighted-average all-in yield and cost are expressed as a spread over the relevant floating benchmark rates, which include USD LIBOR and one-month SOFR, as applicable to each securitized debt obligation. As of December 31, 2021, the floating benchmark rate for the financing provided on the 2020 FL3 and 2020 FL2 CLOs is one-month SOFR, plus a credit spread adjustment of 0.11%. As of December 31, 2021, one-month SOFR was 0.05% and one-month USD LIBOR was 0.10%. (3) Loan term represents weighted-average final maturity, assuming all extension options are exercised by the borrower. Repayments of securitized debt obligations are tied to timing of the related collateral loan asset repayments. The term of these obligations represents the rated final distribution date of the securitizations. (4) During the three and six months ended June 30, 2021, we recorded $12.4 million and $24.5 million, respectively, of interest expense related to our securitized debt obligations. |
Asset-Specific Debt, Net
Asset-Specific Debt, Net | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Asset-Specific Debt, Net | ASSET-SPECIFIC DEBT, NET The following tables detail our asset-specific debt ($ in thousands): June 30, 2022 Asset-Specific Debt Count Principal Balance Book Value Wtd. Avg. Yield/Cost (1) Wtd. Avg. Term (2) Collateral assets 4 $ 1,022,146 $ 1,003,394 + 4.30 % March 2026 Financing provided 4 $ 870,684 $ 860,007 + 3.02 % March 2026 December 31, 2021 Asset-Specific Debt Count Principal Balance Book Value Wtd. Avg. Yield/Cost (1) Wtd. Avg. Term (2) Collateral assets 4 $ 446,276 $ 435,727 + 4.04 % March 2025 Financing provided 4 $ 400,699 $ 393,824 + 2.78 % March 2025 (1) These floating rate loans and related liabilities are currency and indexed matched to the applicable benchmark rate relevant in each arrangement. In addition to cash coupon, yield/cost includes the amortization of deferred origination fees / financing costs. (2) The weighted-average term is determined based on the maximum maturity of the corresponding loans, assuming all extension options are exercised by the borrower. Our asset-specific debt is term-matched in each case to the corresponding collateral loans. |
Loan Participations Sold, Net
Loan Participations Sold, Net | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Loans Participations Sold, Net | LOAN PARTICIPATIONS SOLD, NET The following tables detail our loan participations sold ($ in thousands): June 30, 2022 Loan Participations Sold Count Principal Balance Book Value Wtd. Avg. Yield/Cost (1) Term (2) Total Loan 1 $ 283,139 $ 280,560 + 4.86 % March 2027 Senior Participation 1 $ 226,511 $ 225,884 + 3.22 % March 2027 (1) This non-debt participation sold structure is inherently matched in terms of currency and interest rate. In addition to cash coupon, yield/cost includes the amortization of deferred fees / financing costs. (2) The term is determined based on the on maximum maturity of the loan, assuming all extension options are exercised by the borrower. We did not have any loan participations sold as of December 31, 2021. |
Term Loans, Net
Term Loans, Net | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Term Loans, Net | TERM LOANS, NET During the six months ended June 30, 2022, we entered into a $500.0 million term loan facility, or the B-4 Term Loan. The B-4 Term Loan bears interest at SOFR plus 3.50% and matures in May 2029. As of June 30, 2022, the following senior term loan facilities, or Term Loans, were outstanding ($ in thousands): Term Loans Face Value Interest Rate (1) All-in Cost (1)(2) Maturity B-1 Term Loan $ 925,121 + 2.25 % + 2.53 % April 23, 2026 B-3 Term Loan $ 417,280 + 2.75 % + 3.42 % April 23, 2026 B-4 Term Loan $ 500,000 + 3.50 % + 3.98 % May 9, 2029 (1) The B-3 Term Loan and the B-4 Term Loan borrowings are subject to a floor of 0.50%. (2) Includes issue discount and transaction expenses that are amortized through interest expense over the life of the Term Loans. The Term Loans are partially amortizing, with an amount equal to 1.0% per annum of the aggregate initial principal balance due in quarterly installments. The issue discount and transaction expenses on the B-1 Term Loan were $3.1 million and $12.6 million, respectively. The issue discount and transaction expenses of the B-3 Term Loan were $9.6 million and $5.4 million, respectively. The issue discount and transaction expenses of the B-4 Term Loan were $7.5 million and $5.9 million, respectively. These discounts and expenses will be amortized into interest expense over the life of each Term Loan. The following table details the net book value of our Term Loans on our consolidated balance sheets ($ in thousands): June 30, 2022 December 31, 2021 Face value $ 1,842,401 $ 1,349,271 Unamortized discount (15,494) (9,209) Deferred financing costs (16,965) (12,656) Net book value $ 1,809,942 $ 1,327,406 |
Senior Secured Notes, Net
Senior Secured Notes, Net | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Senior Secured Notes, Net | SENIOR SECURED NOTES, NET As of June 30, 2022, the following Senior Secured Notes, were outstanding ($ in thousands): Senior Secured Notes Face Value Interest Rate All-in Cost (1) Maturity Senior Secured Notes $ 400,000 3.75 % 4.04 % January 15, 2027 (1) Includes transaction expenses that are amortized through interest expense over the life of the Senior Secured Notes. The transaction expenses on the Senior Secured Notes were $6.3 million, which will be amortized into interest expense over the life of the Senior Secured Notes. The following table details the net book value of our Senior Secured Notes on our consolidated balance sheets ($ in thousands): June 30, 2022 December 31, 2021 Face value $ 400,000 $ 400,000 Deferred financing costs (5,438) (5,990) Net book value $ 394,562 $ 394,010 The covenants under our Senior Secured Notes require us to maintain a total debt to total assets ratio, as defined in the agreements, of not greater than 83.33% and, in certain circumstances, a total unencumbered assets to total unsecured indebtedness ratio, as defined in the agreements, of 1.20 or greater. As of June 30, 2022 and December 31, 2021, we were in compliance with these covenants. |
Convertible Notes, Net
Convertible Notes, Net | 6 Months Ended |
Jun. 30, 2022 | |
Debt Instruments [Abstract] | |
Convertible Notes, Net | CONVERTIBLE NOTES, NET During the six months ended June 30, 2022, we issued $300.0 million aggregate principal amount of 5.50% convertible senior notes due 2027, or the March 2022 convertible notes. In connection with this offering, we repurchased $64.7 million aggregate principal amount of our May 2017 convertible senior notes at a price of 100.25% per $1,000 principal amount. We repaid the remaining $337.9 million aggregate principal amount of our May 2017 convertible senior notes at maturity on May 5, 2022. As of June 30, 2022, the following convertible senior notes, or Convertible Notes, were outstanding ($ in thousands): Convertible Notes Issuance Face Value Interest Rate All-in Cost (1) Conversion Price (2) Maturity March 2018 $ 220,000 4.75% 5.33% $36.23 March 15, 2023 March 2022 $ 300,000 5.50% 5.94% $36.27 March 15, 2027 (1) Includes issuance costs that are amortized through interest expense over the life of the Convertible Notes using the effective interest method. (2) Represents the price of class A common stock per share based on a conversion rate of 27.6052 and 27.5702, respectively, for the March 2018 and March 2022 convertible notes. The conversion rate represents the number of shares of class A common stock issuable per $1,000 principal amount of Convertible Notes. The cumulative dividend threshold as defined in the respective March 2018 and March 2022 convertible notes supplemental indentures have not been exceeded as of June 30, 2022. Other than as provided by the optional redemption provisions with respect to our March 2022 convertible notes, we may not redeem the Convertible Notes prior to maturity. The Convertible Notes are convertible at the holders’ option into shares of our class A common stock, only under specific circumstances, prior to the close of business on December 14, 2022 and December 14, 2026 for the March 2018 and March 2022 convertible notes, respectively, at the applicable conversion rate in effect on the conversion date. Thereafter, the Convertible Notes are convertible at the option of the holder at any time until the second scheduled trading day immediately preceding the maturity date. The last reported sale price of our class A common stock of $27.67 on June 30, 2022 was less than the per share conversion price of the March 2018 and March 2022 convertible notes. We adopted ASU 2020-06 on January 1, 2022, using the modified retrospective method of transition, which resulted in an aggregate decrease to our additional paid-in capital of $2.4 million, an aggregate decrease to our accumulated deficit of $2.0 million, and an aggregate increase to our convertible notes, net, balance of $476,000, as of January 1, 2022. Subsequent to adoption of ASU 2020-06, convertible debt proceeds, unless issued with a substantial premium or an embedded conversion feature, will no longer be allocated between debt and equity components. This reduces the issue discount and results in less non-cash interest expense in our consolidated financial statements. Additionally, ASU 2020-06 results in the reporting of diluted earnings per share for shares issuable under our convertible notes in our consolidated financial statements, if the effect is dilutive, regardless of our settlement intent. Refer to Note 2 and Note 13 for additional discussion of ASU 2020-06 and our earnings per share calculation, respectively. The following table details the net book value of our Convertible Notes on our consolidated balance sheets ($ in thousands): June 30, 2022 December 31, 2021 Face value $ 520,000 $ 622,500 Unamortized discount (6,950) (2,472) Deferred financing costs (56) (152) Net book value $ 512,994 $ 619,876 The following table details our interest expense related to the Convertible Notes ($ in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Cash coupon $ 8,132 $ 7,015 $ 15,384 $ 14,030 Discount and issuance cost amortization 790 869 1,578 1,722 Total interest expense $ 8,922 $ 7,884 $ 16,962 $ 15,752 |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Jun. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | DERIVATIVE FINANCIAL INSTRUMENTS The objective of our use of derivative financial instruments is to minimize the risks and/or costs associated with our investments and/or financing transactions. These derivatives may or may not qualify as net investment, cash flow, or fair value hedges under the hedge accounting requirements of ASC 815 – “Derivatives and Hedging.” Derivatives not designated as hedges are not speculative and are used to manage our exposure to interest rate movements and other identified risks. Refer to Note 2 for additional discussion of the accounting for designated and non-designated hedges. The use of derivative financial instruments involves certain risks, including the risk that the counterparties to these contractual arrangements do not perform as agreed. To mitigate this risk, we only enter into derivative financial instruments with counterparties that have appropriate credit ratings and are major financial institutions with which we and our affiliates may also have other financial relationships. Net Investment Hedges of Foreign Currency Risk Certain of our international investments expose us to fluctuations in foreign interest rates and currency exchange rates. These fluctuations may impact the value of our cash receipts and payments in terms of our functional currency, the U.S. dollar. We use foreign currency forward contracts to protect the value or fix the amount of certain investments or cash flows in terms of the U.S. dollar. Designated Hedges of Foreign Currency Risk The following table details our outstanding foreign exchange derivatives that were designated as net investment hedges of foreign currency risk (notional amount in thousands): June 30, 2022 December 31, 2021 Foreign Currency Derivatives Number of Instruments Notional Amount Foreign Currency Derivatives Number of Instruments Notional Amount Buy USD / Sell SEK Forward 1 kr 995,700 Buy USD / Sell SEK Forward 1 kr 999,500 Buy USD / Sell EUR Forward 5 € 707,092 Buy USD / Sell EUR Forward 7 € 731,182 Buy USD / Sell GBP Forward 3 £ 670,013 Buy USD / Sell GBP Forward 2 £ 489,204 Buy USD / Sell AUD Forward 5 A$ 514,500 Buy USD / Sell AUD Forward 3 A$ 188,600 Buy USD / Sell DKK Forward 2 kr. 167,200 Buy USD / Sell CAD Forward 2 C$ 22,100 Buy USD / Sell CAD Forward 2 C$ 18,300 Buy USD / Sell CHF Forward 1 CHF 5,200 Buy USD / Sell CHF Forward 1 CHF 5,200 Non-designated Hedges of Foreign Currency Risk The following table details our outstanding foreign exchange derivatives that were non-designated hedges of foreign currency risk (notional amount in thousands): June 30, 2022 December 31, 2021 Non-designated Hedges Number of Instruments Notional Amount Non-designated Hedges Number of Instruments Notional Amount Buy EUR / Sell USD Forward 1 € 18,000 Buy GBP / Sell USD Forward 3 £ 170,600 Buy USD / Sell EUR Forward 2 € 18,000 Buy USD / Sell GBP Forward 3 £ 170,600 Buy GBP / Sell EUR 1 £ 8,410 Buy EUR / Sell USD Forward 2 € 165,560 Buy EUR / Sell GBP 1 € 8,410 Buy USD / Sell EUR Forward 3 € 165,560 Buy GBP / Sell USD Forward 1 £ 7,026 Buy CHF / Sell USD Forward 1 CHF 20,300 Buy USD / Sell GBP Forward 1 £ 7,026 Buy USD / Sell CHF Forward 1 CHF 20,300 Buy GBP / Sell EUR Forward 1 € 8,410 Financial Statement Impact of Hedges of Foreign Currency Risk The following table presents the effect of our derivative financial instruments on our consolidated statements of operations ($ in thousands): Increase (Decrease) to Net Interest Income Recognized from Foreign Three Months Ended June 30, Six Months Ended June 30, Foreign Exchange Contracts in Hedging Relationships Location of Income (Expense) Recognized 2022 2021 2022 2021 Designated Hedges Interest Income (1) $ 3,238 $ 1,703 $ 4,982 $ 3,752 Non-Designated Hedges Interest Income (1) (7) (99) (8) (374) Non-Designated Hedges Interest Expense (2) 55 2,197 65 (7,131) Total $ 3,286 $ 3,801 $ 5,039 $ (3,753) (1) Represents the forward points earned on our foreign currency forward contracts, which reflect the interest rate differentials between the applicable base rate for our foreign currency investments and USD LIBOR. These forward contracts effectively convert the rate exposure to USD LIBOR, resulting in additional interest income earned in U.S. dollar terms. (2) Represents the spot rate movement in our non-designated hedges, which are marked-to-market and recognized in interest expense. Valuation and Other Comprehensive Income The following table summarizes the fair value of our derivative financial instruments ($ in thousands): Fair Value of Derivatives in an Asset Position (1) as of Fair Value of Derivatives in a Liability Position (2) as of Foreign Exchange Contracts June 30, 2022 December 31, 2021 June 30, 2022 December 31, 2021 Designated Hedges $ 83,143 $ 23,423 $ 1,807 $ 1,383 Non-Designated Hedges 839 7,108 782 4,507 Total Derivatives $ 83,982 $ 30,531 $ 2,589 $ 5,890 (1) Included in other assets in our consolidated balance sheets. (2) Included in other liabilities in our consolidated balance sheets. The following table presents the effect of our derivative financial instruments on our consolidated statements of operations ($ in thousands): Derivatives in Hedging Relationships Amount of Gain (Loss) Recognized in OCI on Derivatives Location of Amount of Loss Reclassified from Accumulated OCI into Income Three Months Ended June 30, 2022 Six Months Ended June 30, 2022 Three Months Ended June 30, 2022 Six Months Ended June 30, 2022 Net Investment Hedges Foreign exchange contracts (1) $ 128,685 $ 174,195 Interest Expense $ — $ — Cash Flow Hedges Interest rate derivatives — — Interest Expense (2) — (4) Total $ 128,685 $ 174,195 $ — $ (4) (1) During the three and six months ended June 30, 2022, we received net cash settlements of $96.2 million and $122.5 million on our foreign currency forward contracts, respectively. Those amounts are included as a component of accumulated other comprehensive income on our consolidated balance sheets. (2) During the six months ended June 30, 2022, we recorded total interest and related expenses of $237.3 million, which included $4,000 related to our cash flow hedges. Credit-Risk Related Contingent Features We have entered into agreements with certain of our derivative counterparties that contain provisions where if we were to default on any of our indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, we may also be declared in default on our derivative obligations. In addition, certain of our agreements with our derivative counterparties require that we post collateral to secure net liability positions. As of June 30, 2022, we were in a net asset position with both of our derivative counterparties and did not have any collateral posted under these derivative contracts. As of December 31, 2021, we were in a net asset position with both of our derivative counterparties and did not have any collateral posted under these derivative contracts. |
Equity
Equity | 6 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
Equity | EQUITY Stock and Stock Equivalents Authorized Capital As of June 30, 2022, we had the authority to issue up to 500,000,000 shares of stock, consisting of 400,000,000 shares of class A common stock and 100,000,000 shares of preferred stock. Subject to applicable NYSE listing requirements, our board of directors is authorized to cause us to issue additional shares of authorized stock without stockholder approval. In addition, to the extent not issued, currently authorized stock may be reclassified between class A common stock and preferred stock. We did not have any shares of preferred stock issued and outstanding as of June 30, 2022 and December 31, 2021. Class A Common Stock and Deferred Stock Units Holders of shares of our class A common stock are entitled to vote on all matters submitted to a vote of stockholders and are entitled to receive dividends authorized by our board of directors and declared by us, in all cases subject to the rights of the holders of shares of outstanding preferred stock, if any. The following table details our issuance of class A common stock during the six months ended June 30, 2022 ($ in thousands, except share and per share data): Class A Common Stock Offerings June 30, 2022 Shares issued (1) 1,675,000 Gross / net issue price per share (2) $31.55 / $31.23 Net proceeds (3) $52,155 (1) Issuance represents shares issued under our at-the-market program. (2) Represents the gross price per share issued, as well as the net proceeds per share after underwriting or sales discounts and commissions. (3) Net proceeds represent proceeds received from the underwriters less applicable transaction costs. We also issue restricted class A common stock under our stock-based incentive plans. Refer to Note 16 for additional discussion of these long-term incentive plans. In addition to our class A common stock, we also issue deferred stock units to certain members of our board of directors in lieu of cash compensation for services rendered. These deferred stock units are non-voting, but carry the right to receive dividends in the form of additional deferred stock units in an amount equivalent to the cash dividends paid to holders of shares of class A common stock. The following table details the movement in our outstanding shares of class A common stock, including restricted class A common stock and deferred stock units: Six Months Ended June 30, Common Stock Outstanding (1) 2022 2021 Beginning balance 168,543,370 147,086,722 Issuance of class A common stock (2)(3) 1,678,420 949 Issuance of restricted class A common stock, net (4) 436,831 234,838 Issuance of deferred stock units 27,455 21,374 Ending balance 170,686,076 147,343,883 (1) Includes 391,027 and 328,065 deferred stock units held by members of our board of directors as of June 30, 2022 and 2021, respectively. (2) Includes 3,420 and 949 shares issued under our dividend reinvestment program during the six months ended June 30, 2022 and 2021, respectively. (3) Includes 13,197 restricted shares issued to our board of directors during the six months ended June 30, 2022. (4) Net of 4,000 and 28,971 shares of restricted class A common stock forfeited under our stock-based incentive plans during the six months ended June 30, 2022 and 2021, respectively. See Note 16 for further discussion of our stock-based incentive plans. Dividend Reinvestment and Direct Stock Purchase Plan We have adopted a dividend reinvestment and direct stock purchase plan under which we registered and reserved for issuance, in the aggregate, 10,000,000 shares of class A common stock. Under the dividend reinvestment component of this plan, our class A common stockholders can designate all or a portion of their cash dividends to be reinvested in additional shares of class A common stock. The direct stock purchase component allows stockholders and new investors, subject to our approval, to purchase shares of class A common stock directly from us. During the three and six months ended June 30, 2022 we issued 2,781 shares and 3,420 shares, respectively, of class A common stock under the dividend reinvestment component of the plan compared to 434 shares and 949 shares, respectively, for the same periods in 2021. As of June 30, 2022, a total of 9,986,370 shares of class A common stock remained available for issuance under the dividend reinvestment and direct stock purchase plan. At the Market Stock Offering Program As of June 30, 2022, we are party to seven equity distribution agreements, or ATM Agreements, pursuant to which we may sell, from time to time, up to an aggregate sales price of $500.0 million of our class A common stock. Sales of class A common stock made pursuant to our ATM Agreements may be made in negotiated transactions or transactions that are deemed to be “at the market” offerings as defined in Rule 415 under the Securities Act of 1933, as amended. Actual sales depend on a variety of factors including market conditions, the trading price of our class A common stock, our capital needs, and our determination of the appropriate sources of funding to meet such needs. During the six months June 30, 2022, we issued and sold 1,675,000 shares of class A common stock under ATM Agreements, generating net proceeds totaling $52.2 million. During the six months ended June 30, 2021, we did not issue any shares of our class A common stock under ATM Agreements. As of June 30, 2022, sales of our class A common stock with an aggregate sales price of $300.9 million remained available for issuance under our ATM Agreements. Dividends We generally intend to distribute substantially all of our taxable income, which does not necessarily equal net income as calculated in accordance with GAAP, to our stockholders each year to comply with the REIT provisions of the Internal Revenue Code of 1986, as amended, or the Internal Revenue Code. Our dividend policy remains subject to revision at the discretion of our board of directors. All distributions will be made at the discretion of our board of directors and will depend upon our taxable income, our financial condition, our maintenance of REIT status, applicable law, and other factors as our board of directors deems relevant. On June 15, 2022, we declared a dividend of $0.62 per share, or $105.6 million in aggregate, that was paid on July 15, 2022 to stockholders of record as of June 30, 2022. The following table details our dividend activity ($ in thousands, except per share data): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Dividends declared per share of common stock $ 0.62 $ 0.62 $ 1.24 $ 1.24 Class A common stock dividends declared $ 105,583 $ 91,150 $ 211,158 $ 182,309 Deferred stock unit dividends declared 229 197 455 387 Total dividends declared $ 105,812 $ 91,347 $ 211,613 $ 182,696 Earnings Per Share We calculate our basic and diluted earnings per share using the two-class method for all periods presented as the unvested shares of our restricted class A common stock qualify as participating securities, as defined by GAAP. These restricted shares have the same rights as our other shares of class A common stock, including participating in any dividends, and therefore have been included in our basic and diluted net income per share calculation. The shares issuable under our Convertible Notes, other than the May 2017 convertible notes, are included in dilutive earnings per share using the if-converted method. The following table sets forth the calculation of basic and diluted net income per share of class A common stock based on the weighted-average of both restricted and unrestricted class A common stock outstanding ($ in thousands, except per share data): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Basic Earnings: Net income (1) $ 93,250 $ 131,595 $ 192,937 $ 211,497 Weighted-average shares outstanding, basic 170,665,601 147,342,822 169,963,730 147,339,895 Per share amount, basic $ 0.55 $ 0.89 $ 1.14 $ 1.44 Diluted Earnings: Net income (1) $ 93,250 $ 131,595 $ 192,937 $ 211,497 Add back: Interest expense on Convertible Notes, net (2)(3) 5,913 — 8,313 — Diluted earnings $ 99,163 $ 131,595 $ 201,250 $ 211,497 Weighted-average shares outstanding, basic 170,665,601 147,342,822 169,963,730 147,339,895 Effect of dilutive securities - Convertible Notes (3)(4) 14,344,204 — 10,368,611 — Weighted-average common shares outstanding, diluted 185,009,805 147,342,822 180,332,341 147,339,895 Per share amount, diluted $ 0.54 $ 0.89 $ 1.12 $ 1.44 (1) Represents net income attributable to Blackstone Mortgage Trust. (2) Represents the interest expense on our convertible notes, net of incentive fees. (3) For the three and six months ended June 30, 2021, prior to the adoption of ASU 2020-06, our convertible notes were not assessed for dilution as we had the intent and ability to settle the convertible notes in cash. Refer to Note 2 and Note 11 for further discussion of ASU 2020-06 and our convertible notes, respectively. (4) For the three months ended June 30, 2022, represents 8.3 million and 6.1 million of weighted-average shares, using the if-converted method, related to our March 2022 and March 2018 Convertible Notes, respectively. For the six months ended June 30, 2022, represents 4.3 million and 6.1 million of weighted-average shares, using the in-converted method, related to our March 2022 convertible notes, which were issued on March 29, 2022, and our March 2018 convertible notes, respectively. Our May 2017 convertible notes were elected to be settled in cash and were repaid during the six months ended June 30, 2022. Therefore, the May 2017 convertible notes do not have any impact on our diluted earnings per share. Other Balance Sheet Items Accumulated Other Comprehensive Income As of June 30, 2022, total accumulated other comprehensive income was $7.1 million, primarily representing $260.6 million of net realized and unrealized gains related to changes in the fair value of derivative instruments offset by $253.5 million of cumulative unrealized currency translation adjustments on assets and liabilities denominated in foreign currencies. As of December 31, 2021, total accumulated other comprehensive income was $8.3 million, primarily representing $86.4 million of net realized and unrealized gains related to changes in the fair value of derivative instruments offset by $78.1 million of cumulative unrealized currency translation adjustments on assets and liabilities denominated in foreign currencies. Non-Controlling Interests The non-controlling interests included on our consolidated balance sheets represent the equity interests in our Multifamily Joint Venture that are not owned by us. A portion of our Multifamily Joint Venture’s consolidated equity and results of operations are allocated to these non-controlling interests based on their pro rata ownership of our Multifamily Joint Venture. As of June 30, 2022, our Multifamily Joint Venture’s total equity was $169.3 million, of which $143.9 million was owned by us, and $25.4 million was allocated to non-controlling interests. As of December 31, 2021, our Multifamily |
Other Expenses
Other Expenses | 6 Months Ended |
Jun. 30, 2022 | |
Other Income and Expenses [Abstract] | |
Other Expenses | OTHER EXPENSES Our other expenses consist of the management and incentive fees we pay to our Manager and our general and administrative expenses. Management and Incentive Fees Pursuant to a management agreement between our Manager and us, or our Management Agreement, our Manager earns a base management fee in an amount equal to 1.50% per annum multiplied by our outstanding equity balance, as defined in the Management Agreement. In addition, our Manager is entitled to an incentive fee in an amount equal to the product of (i) 20% and (ii) the excess of (a) our Core Earnings (as defined in our Management Agreement) for the previous 12-month period over (b) an amount equal to 7.00% per annum multiplied by our outstanding Equity, provided that our Core Earnings over the prior three-year period is greater than zero. Core Earnings, as defined in our Management Agreement, is generally equal to our GAAP net income (loss), including realized gains and losses not otherwise recognized in current period GAAP net income (loss), and excluding (i) non-cash equity compensation expense, (ii) depreciation and amortization, (iii) unrealized gains (losses), (iv) net income (loss) attributable to our legacy portfolio, (v) certain non-cash items, and (vi) incentive management fees. During the three and six months ended June 30, 2022, we incurred $18.2 million and $36.3 million, respectively, of management fees payable to our manager, compared with $15.6 million and $31.1 million during the same period in 2021. In addition, during the three and six months ended June 30, 2022, we incurred $8.8 million and $14.3 million respectively, of incentive fees payable to our Manager, compared to $6.0 million and $9.6 million during the same period in 2021. As of June 30, 2022 and December 31, 2021 we had accrued management and incentive fees payable to our Manager of $27.1 million and $28.4 million, respectively. General and Administrative Expenses General and administrative expenses consisted of the following ($ in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Professional services $ 2,693 $ 2,043 $ 5,390 $ 3,861 Operating and other costs 1,298 606 2,311 1,301 Subtotal (1) 3,991 2,649 7,701 5,162 Non-cash compensation expenses Restricted class A common stock earned 8,245 7,895 16,723 15,855 Director stock-based compensation 173 125 345 250 Subtotal 8,418 8,020 17,068 16,105 Total general and administrative expenses $ 12,409 $ 10,669 $ 24,769 $ 21,267 (1) During the three and six months ended June 30, 2022, we recognized an aggregate $227,000 and $544,000, respectively, of expenses related to our Multifamily Joint Venture. During the three and six months ended June 30, 2021, we recognized an aggregate $197,000 and $433,000, respectively, of expenses related to our Multifamily Joint Venture. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES We have elected to be taxed as a REIT under the Internal Revenue Code for U.S. federal income tax purposes. We generally must distribute annually at least 90% of our net taxable income, subject to certain adjustments and excluding any net capital gain, in order for U.S. federal income tax not to apply to our earnings that we distribute. To the extent that we satisfy this distribution requirement, but distribute less than 100% of our net taxable income, we will be subject to U.S. federal income tax on our undistributed taxable income. In addition, we will be subject to a 4% nondeductible excise tax if the actual amount that we pay out to our stockholders in a calendar year is less than a minimum amount specified under U.S. federal tax laws. Our qualification as a REIT also depends on our ability to meet various other requirements imposed by the Internal Revenue Code, which relate to organizational structure, diversity of stock ownership, and certain restrictions with regard to the nature of our assets and the sources of our income. Even if we qualify as a REIT, we may be subject to certain U.S. federal income and excise taxes and state and local taxes on our income and assets. If we fail to maintain our qualification as a REIT for any taxable year, we may be subject to material penalties as well as federal, state, and local income tax on our taxable income at regular corporate rates and we would not be able to qualify as a REIT for the subsequent four full taxable years. As of June 30, 2022 and December 31, 2021, we were in compliance with all REIT requirements. Securitization transactions could result in the creation of taxable mortgage pools for federal income tax purposes. As a REIT, so long as we own 100% of the equity interests in a taxable mortgage pool, we generally would not be adversely affected by the characterization of the securitization as a taxable mortgage pool. Certain categories of stockholders, however, such as foreign stockholders eligible for treaty or other benefits, stockholders with net operating losses, and certain tax-exempt stockholders that are subject to unrelated business income tax, or UBTI, could be subject to increased taxes on a portion of their dividend income from us that is attributable to the taxable mortgage pool. We have not made UBTI distributions to our common stockholders and do not intend to make such UBTI distributions in the future. During the three and six months ended June 30, 2022, we recorded a current income tax provision of $746,000 and $892,000 respectively, primarily related to activities of our taxable REIT subsidiaries and various state and local taxes. During the three and six months ended June 30, 2021, we recorded a current income tax provision of $175,000 and $276,000, respectively. We did not have any deferred tax assets or liabilities as of June 30, 2022 or December 31, 2021. We have net operating losses, or NOLs, generated by our predecessor business that may be carried forward and utilized in current or future periods. As a result of our issuance of 25,875,000 shares of class A common stock in May 2013, the availability of our NOLs is generally limited to $2.0 million per annum by change of control provisions promulgated by the Internal Revenue Service with respect to the ownership of Blackstone Mortgage Trust. As of June 30, 2022, we had estimated NOLs of $159.0 million that will expire in 2029, unless they are utilized by us prior to expiration. We have a full valuation allowance against such NOLs as it is probable that they will expire unutilized. |
Stock-Based Incentive Plans
Stock-Based Incentive Plans | 6 Months Ended |
Jun. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Incentive Plans | STOCK-BASED INCENTIVE PLANS We are externally managed by our Manager and do not currently have any employees. However, as of June 30, 2022, our Manager, certain individuals employed by an affiliate of our Manager, and certain members of our board of directors were compensated, in part, through our issuance of stock-based instruments. Prior to the adoption and shareholder approval of our new stock incentive plans, we had stock-based incentive awards outstanding under nine stock incentive plans. In connection with the adoption of our new stock incentive plans, we consolidated all outstanding DSUs under the new plans and retired the seven remaining historical plans. As such, no new awards may be issued under these expired plans, although our 2018 plans will continue to govern outstanding awards (other than DSUs) previously issued thereunder until such awards become vested or expire. Under our two current stock incentive plans, a maximum of 10,400,000 shares of our class A common stock may be issued to our Manager, our directors and officers, and certain employees of affiliates of our Manager. As of June 30, 2022, there were 10,011,288 shares available under our current stock incentive plans. The following table details the movement in our outstanding shares of restricted class A common stock and the weighted-average grant date fair value per share: Restricted Class A Common Stock Weighted-Average Grant Date Fair Value Per Share Balance as of December 31, 2021 1,706,121 $ 31.19 Granted 440,831 30.96 Vested (521,692) 32.05 Forfeited (4,000) 31.57 Balance as of June 30, 2022 1,621,260 $ 30.85 These shares generally vest in installments over a period of three years, pursuant to the terms of the respective award agreements and the terms of our current benefit plans. The 1,621,260 shares of restricted class A common stock outstanding as of June 30, 2022 will vest as follows: 514,871 shares will vest in 2022; 697,797 shares will vest in 2023; and 408,592 shares will vest in 2024. As of June 30, 2022, total unrecognized compensation cost relating to unvested share-based compensation arrangements was $48.1 million based on the grant date fair value of shares granted. This cost is expected to be recognized over a weighted-average period of 1.1 years from June 30, 2022. |
Fair Values
Fair Values | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Values | FAIR VALUES Assets and Liabilities Measured at Fair Value The following table summarizes our assets and liabilities measured at fair value on a recurring basis ($ in thousands): June 30, 2022 December 31, 2021 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets Derivatives $ — $ 83,982 $ — $ 83,982 $ — $ 30,531 $ — $ 30,531 Liabilities Derivatives $ — $ 2,589 $ — $ 2,589 $ — $ 5,890 $ — $ 5,890 Refer to Note 2 for further discussion regarding fair value measurement. Fair Value of Financial Instruments As discussed in Note 2, GAAP requires disclosure of fair value information about financial instruments, whether or not recognized at fair value in the statement of financial position, for which it is practicable to estimate that value. The following table details the book value, face amount, and fair value of the financial instruments described in Note 2 ($ in thousands): June 30, 2022 December 31, 2021 Book Value Face Amount Fair Value Book Value Face Amount Fair Value Financial assets Cash and cash equivalents $ 283,580 $ 283,580 $ 283,580 $ 551,154 $ 551,154 $ 551,154 Loans receivable, net 24,698,522 25,001,207 24,609,487 21,878,338 22,156,437 22,013,762 Debt securities held-to-maturity, net (1) — — — 78,013 79,200 77,229 Financial liabilities Secured debt, net 13,905,949 13,932,436 13,679,307 12,280,042 12,299,580 12,299,580 Securitized debt obligations, net 2,841,901 2,855,625 2,783,170 2,838,062 2,855,625 2,850,399 Asset-specific debt, net 860,007 870,684 863,919 393,824 400,699 400,699 Loan participations sold, net 225,884 226,511 226,511 — — — Secured term loans, net 1,809,942 1,842,401 1,745,307 1,327,406 1,349,271 1,335,844 Senior secured notes, net 394,562 400,000 349,212 394,010 400,000 399,012 Convertible notes, net 512,994 520,000 490,006 619,876 622,500 630,821 (1) Included in other assets on our consolidated balance sheets. Estimates of fair value for cash and cash equivalents and convertible notes are measured using observable, quoted market prices, or Level 1 inputs. Estimates of fair value for debt securities held-to-maturity, securitized debt obligations, the term loans, and the senior secured notes are measured using observable, quoted market prices, in inactive markets, or Level 2 inputs. All other fair value significant estimates are measured using unobservable inputs, or Level 3 inputs. See Note 2 for further discussion regarding fair value measurement of certain of our assets and liabilities. |
Variable Interest Entities
Variable Interest Entities | 6 Months Ended |
Jun. 30, 2022 | |
Variable Interest Entity, Primary Beneficiary, Does Not Hold Majority Voting Interest, Disclosures [Abstract] | |
Variable Interest Entities | VARIABLE INTEREST ENTITIES Consolidated Variable Interest Entities We have financed a portion of our loans through the CLOs, all of which are VIEs. We are the primary beneficiary of, and therefore consolidate, the CLOs on our balance sheet as we (i) control the relevant interests of the CLOs that give us power to direct the activities that most significantly affect the CLOs, and (ii) have the right to receive benefits and obligation to absorb losses of the CLOs through the subordinate interests we own. The following table details the assets and liabilities of our consolidated VIEs ($ in thousands): June 30, 2022 December 31, 2021 Assets: Loans receivable $ 3,449,500 $ 3,486,750 Current expected credit loss reserve (5,950) (4,502) Loans receivable, net 3,443,550 3,482,248 Other assets 59,745 20,746 Total assets $ 3,503,295 $ 3,502,994 Liabilities: Securitized debt obligations, net $ 2,841,901 $ 2,838,062 Other liabilities 3,316 1,800 Total liabilities $ 2,845,217 $ 2,839,862 Assets held by these VIEs are restricted and can be used only to settle obligations of the VIEs, including the subordinate interests owned by us. The liabilities of these VIEs are non-recourse to us and can only be satisfied from the assets of the VIEs. The consolidation of these VIEs results in an increase in our gross assets, liabilities, interest income and interest expense, however it does not affect our stockholders’ equity or net income. Non-Consolidated Variable Interest Entities During the six months ended June 30, 2022, the 2018 Single Asset Securitization was liquidated upon full repayment of its collateral and all senior securities outstanding. In the third quarter of 2018, we contributed a $517.5 million loan to the $1.0 billion 2018 Single Asset Securitization, which is a VIE, and invested in the related $99.0 million subordinate position. We were not the primary beneficiary of the VIE because we did not have the power to direct the activities that most significantly affected the VIE’s economic performance and, therefore, did not consolidate the 2018 Single Asset Securitization on our balance sheet. We classified the subordinate position we owned as a held-to-maturity debt security that was included in other assets on our consolidated balance sheets. |
Transactions With Related Parti
Transactions With Related Parties | 6 Months Ended |
Jun. 30, 2022 | |
Related Party Transactions [Abstract] | |
Transactions With Related Parties | TRANSACTIONS WITH RELATED PARTIES We are managed by our Manager pursuant to the Management Agreement, the current term of which expires on December 19, 2022, and will be automatically renewed for a one-year term upon such date and each anniversary thereafter unless earlier terminated. As of June 30, 2022 and December 31, 2021, our consolidated balance sheets included $27.1 million and $28.4 million of accrued management and incentive fees payable to our Manager, respectively. During the three and six months ended June 30, 2022, we paid aggregate management and incentive fees of $23.5 million and $51.9 million, respectively, to our Manager, compared to $19.2 million and $38.4 million during the same period of 2021. In addition, during the three and six months ended June 30, 2022, we incurred expenses of $367,000 and $560,000, respectively, that were paid by our Manager and will be reimbursed by us, compared to $145,000 and $185,000 of such expenses during the same period of 2021. As of June 30, 2022, our Manager held 807,636 shares of unvested restricted class A common stock, which had an aggregate grant date fair value of $25.1 million, and vest in installments over three years from the date of issuance. During the three and six months ended June 30, 2022, we recorded non-cash expenses related to shares held by our Manager of $4.2 million and $8.4 million, respectively, compared to $4.1 million and $8.1 million during the same period of 2021. Refer to Note 16 for further details on our restricted class A common stock. An affiliate of our Manager is the special servicer of the CLOs. This affiliate did not earn any special servicing fees related to the CLOs during the six months ended June 30, 2022 or 2021. During the three and six months ended June 30, 2022, we incurred $95,000 and $192,000, respectively, of expenses for various administrative and operations services to third-party service providers that are affiliates of our Manager, compared to $92,000 and $192,000 during the same period of 2021. In the second quarter of 2022, we participated in AUD 1.3 billion, or 24.5%, of an aggregate AUD 5.4 billion senior loan that was originated by an unaffiliated third party to a borrower that is wholly-owned by Blackstone-advised investment vehicles. Another Blackstone-advised investment vehicle participated in an additional AUD 1.3 billion, or 24.5%, of the loan. We will forgo all non-economic rights under the loan, including voting rights, so long as we are an affiliate of the borrower. The senior loan terms were negotiated by a third-party without our involvement and our 24.5% interest in the senior loan was made on such market terms. In the second quarter of 2022, we co-originated £250.0 million of an aggregate £500.0 million senior loan to an unaffiliated third-party. A Blackstone-advised investment vehicle co-originated the additional pari passu £250.0 million of the loan. In the second quarter of 2022, a Blackstone-advised investment vehicle acquired an aggregate $15.0 million participation, or 3%, of the aggregate $500.0 million B-4 Term Loan as a part of a broad syndication lead-arranged by JP Morgan. Blackstone Securities Partners L.P., an affiliate of our Manager, was engaged as a book-runner for the transaction and received aggregate fees of $500,000 in such capacity. Both of these transactions were on terms equivalent to those of unaffiliated parties. In the second quarter of 2021, we acquired an aggregate €50.0 million of a total €491.0 million senior loan to a borrower that is majority owned by a Blackstone-advised investment vehicle. We will forgo all non-economic rights under the loan, including voting rights, so long as the Blackstone-advised investment vehicle controls the borrower. The senior loan terms were negotiated by the original lenders prior to our acquisition of the loan without our involvement In the second quarter of 2021, a Blackstone-advised investment vehicle acquired an aggregate $15.0 million participation, or 15%, of the $100.0 million increase to our B-3 Term Loan as a part of a broad syndication lead-arranged by JP Morgan. Blackstone Securities Partners L.P., an affiliate of our Manager, was engaged as a book-runner for the transaction and received aggregate fees of $100,000 in such capacity. Both of these transactions were on terms equivalent to those of unaffiliated parties. In the first quarter of 2021, we acquired an SEK 5.0 billion interest in a total SEK 10.2 billion senior loan to a borrower that is wholly owned by a Blackstone-advised investment vehicle. We will forgo all non-economic rights under the loan, including voting rights, so long as we are an affiliate of the borrower. The senior loan terms were negotiated by a third party without our involvement and our 49% interest in the senior loan was made on such market terms. In the first quarter of 2021, a Blackstone-advised investment vehicle acquired an aggregate $5.5 million participation, or 3%, of the $200 million increase to our B-1 Term Loan as a part of a broad syndication lead-arranged by JP Morgan. Blackstone Securities Partners L.P., an affiliate of our Manager, was engaged as a book-runner for the transaction and received aggregate fees of $200,000 in such capacity. Both of these transactions were on terms equivalent to those of unaffiliated parties. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Impact of COVID-19 As further discussed in Note 2, the full extent of the impact of COVID-19 on the global economy generally, and our business in particular, is uncertain. As of June 30, 2022, no contingencies have been recorded on our consolidated balance sheet as a result of COVID-19, however as the global pandemic continues and the economic implications worsen, it may have long-term impacts on our financial condition, results of operations, and cash flows. Refer to Note 2 for further discussion of COVID-19. Unfunded Commitments Under Loans Receivable As of June 30, 2022, we had aggregate unfunded commitments of $4.6 billion across 125 loans receivable, and $2.7 billion of committed or identified financings for those commitments, resulting in net unfunded commitments of $1.9 billion. The unfunded loan commitments comprise funding for capital expenditures and construction, leasing costs, and interest and carry costs, and their fundability varies depending on the progress of capital projects, leasing, and cash flows at the properties securing our loans. Therefore, the exact timing and amounts of such future loan fundings are uncertain and will depend on the current and future performance of the underlying collateral assets. We expect to fund our loan commitments over the remaining term of the related loans, which have a weighted-average future funding period of 3.9 years. Principal Debt Repayments Our contractual principal debt repayments as of June 30, 2022 were as follows ($ in thousands): Year Secured Debt (1) Asset-Specific Debt (1) Term Loans (2) Senior Secured Notes Convertible Notes (3) Total (4) 2022 (remaining) $ 81,734 $ — $ 9,369 $ — $ — $ 91,103 2023 570,343 — 18,738 — 220,000 809,081 2024 3,312,465 — 18,738 — — 3,331,203 2025 1,275,006 632,308 18,738 — — 1,926,052 2026 4,738,331 — 1,299,318 — — 6,037,649 2027 3,221,663 238,376 5,000 400,000 300,000 4,165,039 Thereafter 732,894 — 472,500 — — 1,205,394 Total obligation $ 13,932,436 $ 870,684 $ 1,842,401 $ 400,000 $ 520,000 $ 17,565,521 (1) The allocation of repayments under our secured debt and asset-specific debt is based on the earlier of (i) the maturity date of each agreement, or (ii) the maximum maturity date of the collateral loans, assuming all extension options are exercised by the borrower. (2) The Term Loans are partially amortizing, with an amount equal to 1.0% per annum of the initial principal balance due in quarterly installments. Refer to Note 9 for further details on our term loans. (3) Reflects the outstanding principal balance of Convertible Notes, excluding any potential conversion premium. Refer to Note 11 for further details on our Convertible Notes. (4) Total does not include $2.9 billion of consolidated securitized debt obligations, $1.5 billion of non-consolidated senior interests, and $226.5 million of loan participations sold, as the satisfaction of these liabilities will not require cash outlays from us. Board of Directors’ Compensation As of June 30, 2022, of the nine members of our board of directors, our six independent directors are entitled to annual compensation of $210,000 each, of which $95,000 will be paid in the form of cash and $115,000 will be paid in the form of deferred stock units or, beginning in 2022, at their election, shares of restricted common stock. The other three board members, including our chairman and our chief executive officer, are not compensated by us for their service as directors. In addition, (i) the chairs of our audit, compensation, and corporate governance committees receive additional annual cash compensation of $20,000, $15,000, and $10,000, respectively and (ii) the members of our audit and investment risk management committees receive additional annual cash compensation of $10,000 and $7,500, respectively. Litigation |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements include, on a consolidated basis, our accounts, the accounts of our wholly-owned subsidiaries, majority-owned subsidiaries, and variable interest entities, or VIEs, of which we are the primary beneficiary. All intercompany balances and transactions have been eliminated in consolidation. Certain reclassifications have been made in the presentation of the prior period statements of changes in equity to conform to the current period presentation. |
Principles of Consolidation | Principles of Consolidation We consolidate all entities that we control through either majority ownership or voting rights. In addition, we consolidate all VIEs of which we are considered the primary beneficiary. VIEs are defined as entities in which equity investors (i) do not have the characteristics of a controlling financial interest and/or (ii) do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties. The entity that consolidates a VIE is known as its primary beneficiary and is generally the entity with (i) the power to direct the activities that most significantly affect the VIE’s economic performance and (ii) the right to receive benefits from the VIE or the obligation to absorb losses of the VIE that could be significant to the VIE. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. As the novel coronavirus, or COVID-19, pandemic has evolved from its emergence in early 2020, so has its global impact. During the course of the pandemic, many countries have re-instituted, or strongly encouraged, varying levels of quarantines and restrictions on travel and in some cases have at times limited operations of certain businesses and taken other restrictive measures designed to help slow the spread of COVID-19 and its variants. Governments and businesses have also instituted vaccine mandates and testing requirements for employees. While vaccine availability and uptake has increased, the longer-term macro-economic effects on global supply chains, inflation, labor shortages and wage increases continue to impact many industries, including the collateral underlying certain of our loans. Moreover, with the potential for new strains of COVID-19 or outbreaks of other infectious diseases, governments and businesses may re-impose aggressive measures to help slow the spread of infectious diseases in the future. For this reason, among others, as the COVID-19 pandemic continues, the potential global impacts are uncertain and difficult to assess. We believe the estimates and assumptions underlying our consolidated financial statements are reasonable and supportable based on the information available as of June 30, 2022, however uncertainty over the ultimate impact of COVID-19, rising inflation and increases in interest rates on the global economy generally, and our business in particular, makes any estimates and assumptions as of June 30, 2022 inherently less certain than they would be absent the current and potential impacts of COVID-19, macroeconomic changes, and geopolitical events. Actual results may ultimately differ materially from those estimates. |
Revenue Recognition | Revenue Recognition Interest income from our loans receivable portfolio and debt securities is recognized over the life of each investment using the effective interest method and is recorded on the accrual basis. Recognition of fees, premiums, and discounts associated with these investments is deferred and recorded over the term of the loan or debt security as an adjustment to yield. Income accrual is generally suspended for loans at the earlier of the date at which payments become 90 days past due or when, in our opinion, recovery of income and principal becomes doubtful. Interest received is then recorded as a reduction in the outstanding principal balance until accrual is resumed when the loan becomes contractually current and performance is demonstrated to be resumed. In addition, for loans we originate, the related origination expenses are deferred and recognized as a component of interest income, however expenses related to loans we acquire are included in general and administrative expenses as incurred. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents represent cash held in banks and liquid investments with original maturities of three months or less. We may have bank balances in excess of federally insured amounts; however, we deposit our cash and cash equivalents with high credit-quality institutions to minimize credit risk exposure. We have not experienced, and do not expect, any losses on our cash or cash equivalents. Restricted cash represents cash collateral held within our 2021 FL4 collateralized loan obligation. See Note 6 for further discussion of the 2021 FL4 collateralized loan obligation. The following table provides a reconciliation of cash, cash equivalents, and restricted cash on our consolidated balance sheets to the total amount shown on our consolidated statements of cash flows ($ in thousands): June 30, 2022 June 30, 2021 Cash and cash equivalents $ 283,580 $ 289,552 2021 FL4 CLO restricted cash — 50,000 Total cash, cash equivalents, and restricted cash shown in our consolidated statements of cash flows $ 283,580 $ 339,552 |
Loans Receivable | Loans Receivable We originate and purchase commercial real estate debt and related instruments generally to be held as long-term investments at amortized cost. |
Debt Securities Held-to-Maturity | Debt Securities Held-to-MaturityWe classify our debt securities as held-to-maturity, as we have the intent and ability to hold these securities until maturity. We include our debt securities in other assets on our consolidated balance sheets at amortized cost. |
Current Expected Credit Losses Reserve | Current Expected Credit Losses Reserve The current expected credit loss, or CECL, reserve required under Accounting Standard Update, or ASU, 2016-13 “Financial Instruments – Credit Losses – Measurement of Credit Losses on Financial Instruments (Topic 326),” or ASU 2016-13, reflects our current estimate of potential credit losses related to our loans and debt securities included in our consolidated balance sheets. Changes to the CECL reserve are recognized through net income on our consolidated statements of operations. While ASU 2016-13 does not require any particular method for determining the CECL reserve, it does specify the reserve should be based on relevant information about past events, including historical loss experience, current portfolio and market conditions, and reasonable and supportable forecasts for the duration of each respective loan. In addition, other than a few narrow exceptions, ASU 2016-13 requires that all financial instruments subject to the CECL model have some amount of loss reserve to reflect the GAAP principal underlying the CECL model that all loans, debt securities, and similar assets have some inherent risk of loss, regardless of credit quality, subordinate capital, or other mitigating factors. We estimate our CECL reserve primarily using the Weighted Average Remaining Maturity, or WARM method, which has been identified as an acceptable loss-rate method for estimating CECL reserves in the Financial Accounting Standards Board, or FASB, Staff Q&A Topic 326, No. 1. The WARM method requires us to reference historic loan loss data across a comparable data set and apply such loss rate to each of our loans over their expected remaining term, taking into consideration expected economic conditions over the relevant timeframe. We apply the WARM method for the majority of our loan portfolio, which loans share similar risk characteristics. In certain instances, for loans with unique risk characteristics, we may instead use a probability-weighted model that considers the likelihood of default and expected loss given default for each such individual loan. Application of the WARM method to estimate a CECL reserve requires judgment, including (i) the appropriate historical loan loss reference data, (ii) the expected timing and amount of future loan fundings and repayments, and (iii) the current credit quality of our portfolio and our expectations of performance and market conditions over the relevant time period. To estimate the historic loan losses relevant to our portfolio, we have augmented our historical loan performance, with market loan loss data licensed from Trepp LLC. This database includes commercial mortgage-backed securities, or CMBS, issued since January 1, 1999 through May 31, 2022. Within this database, we focused our historical loss reference calculations on the most relevant subset of available CMBS data, which we determined based on loan metrics that are most comparable to our loan portfolio including asset type, geography, and origination loan-to-value, or LTV. We believe this CMBS data, which includes month-over-month loan and property performance, is the most relevant, available, and comparable dataset to our portfolio. Our loans typically include commitments to fund incremental proceeds to our borrowers over the life of the loan, which future funding commitments are also subject to the CECL model. The CECL reserve related to future loan fundings is recorded as a component of Other Liabilities on our consolidated balance sheets. This CECL reserve is estimated using the same process outlined above for our outstanding loan balances, and changes in this component of the CECL reserve will similarly impact our consolidated net income. For both the funded and unfunded portions of our loans, we consider our internal risk rating of each loan as the primary credit quality indicator underlying our assessment. The CECL reserve is measured on a collective basis wherever similar risk characteristics exist within a pool of similar assets. We have identified the following pools and measure the reserve for credit losses using the following methods: • U.S. Loans : WARM method that incorporates a subset of historical loss data, expected weighted-average remaining maturity of our loan pool, and an economic view. • Non-U.S. Loans : WARM method that incorporates a subset of historical loss data, expected weighted average remaining maturity of our loan pool, and an economic view. • Unique Loans : a probability of default and loss given default model, assessed on an individual basis. • Impaired Loans : impairment is indicated when it is deemed probable that we will not be able to collect all amounts due to us pursuant to the contractual terms of the loan. Determining that a loan is impaired requires significant judgment from management and is based on several factors including (i) the underlying collateral performance, (ii) discussions with the borrower, (iii) borrower events of default, and (iv) other facts that impact the borrower’s ability to pay the contractual amounts due under the terms of the loan. If a loan is determined to be impaired, we record the impairment as a component of our CECL reserve by applying the practical expedient for collateral dependent loans. The CECL reserve is assessed on an individual basis for these loans by comparing the estimated fair value of the underlying collateral, less costs to sell, to the book value of the respective loan. These valuations require significant judgments, which include assumptions regarding capitalization rates, discount rates, leasing, creditworthiness of major tenants, occupancy rates, availability and cost of financing, exit plan, loan sponsorship, actions of other lenders, and other factors. Actual losses, if any, could ultimately differ materially from these estimates. We only expect to realize the impairment losses if and when such amounts are deemed nonrecoverable upon a realization event. This is generally at the time a loan is repaid, or in the case of foreclosure, when the underlying asset is sold, but non-recoverability may also be concluded if, in our determination, it is nearly certain that all amounts due will not be collected. Contractual Term and Unfunded Loan Commitments Expected credit losses are estimated over the contractual term of each loan, adjusted for expected prepayments. As part of our quarterly review of our loan portfolio, we assess the expected repayment date of each loan, which is used to determine the contractual term for purposes of computing our CECL reserve. Additionally, the expected credit losses over the contractual period of our loans are subject to the obligation to extend credit through our unfunded loan commitments. The CECL reserve for unfunded loan commitments is adjusted quarterly, as we consider the expected timing of future funding obligations over the estimated life of the loan. The considerations in estimating our CECL reserve for unfunded loan commitments are similar to those used for the related outstanding loan receivables. Credit Quality Indicator Our risk rating is our primary credit quality indicator in assessing our current expected credit loss reserve. We perform a quarterly risk review of our portfolio of loans, and assigns each loan a risk rating based on a variety of factors, including, without limitation, LTV, debt yield, property type, geographic and local market dynamics, physical condition, cash flow volatility, leasing and tenant profile, loan structure and exit plan, and project sponsorship. Based on a 5-point scale, our loans are rated “l” through “5,” from less risk to greater risk, relative to our loan portfolio in the aggregate, which ratings are defined as follows: 1 - Very Low Risk 2 - Low Risk 3 - Medium Risk 4 - High Risk/Potential for Loss: A loan that has a risk of realizing a principal loss. 5 - Impaired/Loss Likely: A loan that has a very high risk of realizing a principal loss or has otherwise incurred a principal loss. Estimation of Economic Conditions |
Derivative Financial Instruments | Derivative Financial Instruments We classify all derivative financial instruments as either other assets or other liabilities on our consolidated balance sheets at fair value. On the date we enter into a derivative contract, we designate each contract as (i) a hedge of a net investment in a foreign operation, or net investment hedge, (ii) a hedge of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability, or cash flow hedge, (iii) a hedge of a recognized asset or liability, or fair value hedge, or (iv) a derivative instrument not to be designated as a hedging derivative, or non-designated hedge. For all derivatives other than those designated as non-designated hedges, we formally document our hedge relationships and designation at the contract’s inception. This documentation includes the identification of the hedging instruments and the hedged items, its risk management objectives, strategy for undertaking the hedge transaction and our evaluation of the effectiveness of its hedged transaction. On a quarterly basis, we also formally assess whether the derivative we designated in each hedging relationship is expected to be, and has been, highly effective in offsetting changes in the value or cash flows of the hedged items. If it is determined that a derivative is not highly effective at hedging the designated exposure, hedge accounting is discontinued and the changes in fair value of the instrument are included in net income prospectively. Our net investment hedges are assessed using a method based on changes in spot exchange rates. Gains and losses, representing hedge components excluded from the assessment of effectiveness, are recognized in interest income on our consolidated statements of operations over the contractual term of our net investment hedges on a systematic and rational basis, as documented at hedge inception in accordance with our accounting policy election. All other changes in the fair value of our derivative instruments that qualify as hedges are reported as a component of accumulated other comprehensive income (loss) on our consolidated financial statements. Deferred gains and losses are reclassified out of accumulated other comprehensive income (loss) and into net income in the same period or periods during which the hedged transaction affects earnings, and are presented in the same line item as the earnings effect of the hedged item. For cash flow hedges, this is typically when the periodic swap settlements are made, while for net investment hedges, this occurs when the hedged item is sold or substantially liquidated. To the extent a derivative does not qualify for hedge accounting and is deemed a non-designated hedge, the changes in its fair value are included in net income concurrently. |
Secured Debt and Asset-Specific Debt | Secured Debt and Asset-Specific DebtWe record investments financed with secured debt or asset-specific debt as separate assets and the related borrowings under any secured debt or asset-specific debt are recorded as separate liabilities on our consolidated balance sheets. Interest income earned on the investments and interest expense incurred on the secured debt or asset-specific debt are reported separately on our consolidated statements of operations. |
Senior Loan Participations | Senior Loan Participations In certain instances, we finance our loans through the non-recourse syndication of a senior loan interest to a third-party. Depending on the particular structure of the syndication, the senior loan interest may remain on our GAAP balance sheet or, in other cases, the sale will be recognized and the senior loan interest will no longer be included in our consolidated financial statements. When these sales are not recognized under GAAP we reflect the transaction by recording a loan participations sold liability on our consolidated balance sheet, however this gross presentation does not impact stockholders’ equity or net income. When the sales are recognized, our balance sheet only includes our remaining subordinate loan and not the non-consolidated senior interest we sold. |
Term Loans and Senior Secured Notes | Term Loans We record our term loans as liabilities on our consolidated balance sheets. Where applicable, any issue discount or transaction expenses are deferred and amortized through the maturity date of the term loans as additional non-cash interest expense. Senior Secured Notes We record our senior secured notes as liabilities on our consolidated balance sheets. Where applicable, any issue discount or transaction expenses are deferred and amortized through the maturity date of the senior secured notes as additional non-cash interest expense. |
Convertible Notes | Convertible Notes In August 2020, the FASB issued ASU 2020-06 “Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity,” or ASU 2020-06. ASU 2020-06 simplifies the accounting for convertible debt by eliminating the beneficial conversion and cash conversion accounting models. ASU 2020-06 also updates the earnings per share calculation and requires entities to assume share settlement when the convertible debt can be settled in cash or shares. ASU 2020-06 is effective for fiscal years beginning after December 15, 2021 and is to be adopted through a cumulative-effect adjustment to the opening balance of retained earnings either at the date of adoption or in the first comparative period presented. We adopted ASU 2020-06 on January 1, 2022, using the modified retrospective method of transition. Subsequent to adoption of ASU 2020-06, convertible debt proceeds, unless issued with a substantial premium or an embedded conversion feature, will no longer be allocated between debt and equity components. This reduces the issue discount and results in less non-cash interest expense in our consolidated financial statements. Additionally, subsequent to adoption of ASU 2020-06, shares issuable under our convertible notes are included in diluted earnings per share in our consolidated financial statements, if the effect is dilutive, using the if-converted method, regardless of settlement intent. Where applicable, any issue discount or transaction expenses are deferred and amortized through the maturity date of the convertible notes as additional non-cash interest expense. |
Deferred Financing Costs | Deferred Financing Costs The deferred financing costs that are included as a reduction in the net book value of the related liability on our consolidated balance sheets include issuance and other costs related to our debt obligations. These costs are amortized as interest expense using the effective interest method over the life of the related obligations. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The “Fair Value Measurements and Disclosures” Topic o f the FASB, or ASC 820, defines fair value, establishes a framework for measuring fair value, and requires certain disclosures about fair value measurements under GAAP. Specifically, this guidance defines fair value based on exit price, or the price that would be received upon the sale of an asset or the transfer of a liability in an orderly transaction between market participants at the measurement date. ASC 820 also establishes a fair value hierarchy that prioritizes and ranks the level of market price observability used in measuring financial instruments. Market price observability is affected by a number of factors, including the type of financial instrument, the characteristics specific to the financial instrument, and the state of the marketplace, including the existence and transparency of transactions between market participants. Financial instruments with readily available quoted prices in active markets generally will have a higher degree of market price observability and a lesser degree of judgment used in measuring fair value. Financial instruments measured and reported at fair value are classified and disclosed based on the observability of inputs used in the determination, as follows: • Level 1: Generally includes only unadjusted quoted prices that are available in active markets for identical financial instruments as of the reporting date. • Level 2: Pricing inputs include quoted prices in active markets for similar instruments, quoted prices in less active or inactive markets for identical or similar instruments where multiple price quotes can be obtained, and other observable inputs, such as interest rates, yield curves, credit risks, and default rates. • Level 3: Pricing inputs are unobservable for the financial instruments and include situations where there is little, if any, market activity for the financial instrument. These inputs require significant judgment or estimation by management of third-parties when determining fair value and generally represent anything that does not meet the criteria of Levels 1 and 2. The estimated value of each asset reported at fair value using Level 3 inputs is determined by an internal committee composed of members of our senior management, including our Chief Executive Officer, Chief Financial Officer, and other senior officers. Certain of our other assets are reported at fair value, as of quarter-end, either (i) on a recurring basis or (ii) on a nonrecurring basis, as a result of impairment or other events. Our assets that are recorded at fair value are discussed further in Note 17. We generally value our assets recorded at fair value by either (i) discounting expected cash flows based on assumptions regarding the collection of principal and interest and estimated market rates, or (ii) obtaining assessments from third-party dealers. For collateral-dependent loans that are identified as impaired, we measure impairment by comparing our estimation of the fair value of the underlying collateral, less costs to sell, to the book value of the respective loan. These valuations require significant judgments, which include assumptions regarding capitalization rates, discount rates, leasing, creditworthiness of major tenants, occupancy rates, availability and cost of financing, exit plan, loan sponsorship, actions of other lenders, and other factors. As of June 30, 2022, we had a $54.9 million CECL reserve specifically related to one of our loans receivable with an outstanding principal balance of $286.3 million, net of cost-recovery proceeds. The CECL reserve was recorded based on our estimation of the fair value of the loan’s underlying collateral as of June 30, 2022. This loan receivable is therefore measured at fair value on a nonrecurring basis using significant unobservable inputs, and is classified as a Level 3 asset in the fair value hierarchy. The significant unobservable inputs used to estimate the fair value of this loan receivable include the exit capitalization rate assumption of 4.80% used to forecast the future sale price of the underlying real estate collateral and the unlevered discount rate of 8.30%, in addition to reviewing comparable sales on a per-key basis. We are also required by GAAP to disclose fair value information about financial instruments, which are not otherwise reported at fair value in our consolidated balance sheet, to the extent it is practicable to estimate a fair value for those instruments. These disclosure requirements exclude certain financial instruments and all non-financial instruments. The following methods and assumptions are used to estimate the fair value of each class of financial instruments, for which it is practicable to estimate that value: • Cash and cash equivalents: The carrying amount of cash and cash equivalents approximates fair value. • Loans receivable, net: The fair values of these loans were estimated using a discounted cash flow methodology, taking into consideration various factors including capitalization rates, discount rates, leasing, credit worthiness of major tenants, occupancy rates, availability and cost of financing, exit plan, loan sponsorship, actions of other lenders, and other factors. • Debt securities held-to-maturity: The fair value of these instruments was estimated by utilizing third-party pricing service providers assuming the securities are not sold prior to maturity. In determining the value of a particular investment, pricing service providers may use broker-dealer quotations, reported trades, or valuation estimates from their internal pricing models to determine the reported price. • Derivative financial instruments: The fair value of our foreign currency and interest rate contracts was estimated using advice from a third-party derivative specialist, based on contractual cash flows and observable inputs comprising foreign currency rates and credit spreads. • Secured debt, net: The fair value of these instruments was estimated based on the rate at which a similar credit facility would currently be priced. • Securitized debt obligations, net: The fair value of these instruments was estimated by utilizing third-party pricing service providers. In determining the value of a particular investment, pricing service providers may use broker-dealer quotations, reported trades, or valuation estimates from their internal pricing models to determine the reported price. • Asset-specific debt, net: The fair value of these instruments was estimated based on the rate at which a similar agreement would currently be priced. • Loan participations sold, net: The fair value of these instruments was estimated based on the value of the related loan receivable asset. • Term loans, net: The fair value of these instruments was estimated by utilizing third-party pricing service providers. In determining the value of a particular investment, pricing service providers may use broker-dealer quotations, reported trades, or valuation estimates from their internal pricing models to determine the reported price. • Senior secured notes, net: The fair value of these instruments was estimated by utilizing third-party pricing service providers. In determining the value of a particular investment, pricing service providers may use broker-dealer quotations, reported trades, or valuation estimates from their internal pricing models to determine the reported price. |
Income Taxes | Income Taxes Our financial results generally do not reflect provisions for current or deferred income taxes on our REIT taxable income. We believe that we operate in a manner that will continue to allow us to be taxed as a REIT and, as a result, we generally do not expect to pay substantial corporate level taxes other than those payable by our taxable REIT subsidiaries. If we were to fail to meet these requirements, we may be subject to federal, state, and local income tax on current and past income, and penalties. Refer to Note 15 for additional information. |
Stock-Based Compensation | Stock-Based Compensation Our stock-based compensation consists of awards issued to our Manager and certain individuals employed by an affiliate of our Manager that vest over the life of the awards, as well as deferred stock units issued to certain members of our board of directors. Stock-based compensation expense is recognized for these awards in net income on a variable basis over the applicable vesting period of the awards, based on the value of our class A common stock. Refer to Note 16 for additional information. |
Earnings per Share | Earnings per Share Basic earnings per share, or Basic EPS, is computed in accordance with the two-class method and is based on (i) the net earnings allocable to our class A common stock, including restricted class A common stock and deferred stock units, divided by (ii) the weighted-average number of shares of our class A common stock, including restricted class A common stock and deferred stock units outstanding during the period. Our restricted class A common stock is considered a participating security, as defined by GAAP, and has been included in our Basic EPS under the two-class method as these restricted shares have the same rights as our other shares of class A common stock, including participating in any gains or losses. |
Foreign Currency | Foreign Currency In the normal course of business, we enter into transactions not denominated in United States, or U.S., dollars. Foreign exchange gains and losses arising on such transactions are recorded as a gain or loss in our consolidated statements of operations. In addition, we consolidate entities that have a non-U.S. dollar functional currency. Non-U.S. dollar denominated assets and liabilities are translated to U.S. dollars at the exchange rate prevailing at the reporting date and income, expenses, gains, and losses are translated at the average exchange rate over the applicable period. Cumulative translation adjustments arising from the translation of non-U.S. dollar denominated subsidiaries are recorded in other comprehensive income (loss). |
Underwriting Commissions and Offering Costs | Underwriting Commissions and Offering Costs Underwriting commissions and offering costs incurred in connection with common stock offerings are reflected as a reduction of additional paid-in capital. Costs incurred that are not directly associated with the completion of a common stock offering are expensed when incurred. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In March 2022, the FASB issued ASU 2022-02 “Financial Instruments-Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures,” or ASU 2022-02. ASU 2022-02 eliminates the accounting guidance for troubled debt restructurings and requires disclosure of current-period gross write-offs by year of loan origination. Additionally, ASU 2022-02 updates the accounting for credit losses under ASC 326 and adds enhanced disclosures with respect to loan refinancings and restructurings in the form of principal forgiveness, interest rate concessions, other-than-insignificant payment delays, or term extensions when the borrower is experiencing financial difficulties. ASU 2022-02 is effective for fiscal years beginning after December 15, 2022 and early adoption is permitted. The amendments should be applied prospectively, however for the recognition and measurement of troubled debt restructurings, the entity has the option to apply a modified retrospective transition method, resulting in a cumulative-effect adjustment to retained earnings in the period of adoption. We are currently evaluating the impact ASU 2022-02 will have on our consolidated financial statements. In March 2020, the FASB issued ASU 2020-04 “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting,” or ASU 2020-04. ASU 2020-04 provides optional expedients and exceptions to GAAP requirements for modifications on debt instruments, leases, derivatives, and other contracts, related to the expected market transition from LIBOR, and certain other floating rate benchmark indices, or collectively, IBORs, to alternative reference rates. ASU 2020-04 generally considers contract modifications related to reference rate reform to be an event that does not require contract remeasurement at the modification date nor a reassessment of a previous accounting determination. In January 2021, the FASB issued ASU 2021-01 “Reference Rate Reform (Topic 848): Scope,” or ASU 2021-01. ASU 2021-01 clarifies that the practical expedients in ASU 2020-04 apply to derivatives impacted by changes in the interest rate used for margining, discounting, or contract price alignment. The guidance in ASU 2020-04 is optional and may be elected over time, through December 31, 2022, as reference rate reform activities occur. Once ASU 2020-04 is elected, the guidance must be applied prospectively for all eligible contract modifications. In the first quarter of 2020, we have elected to apply the hedge accounting expedients, related to probability and the assessments of effectiveness, for future IBOR-indexed cash flows, to assume that the index upon which future hedged transactions will be based matches the index on the corresponding derivatives. Application of these expedients preserves the presentation of derivatives consistent with our past presentation. We continue to evaluate the impact of ASU 2020-04 and may apply other elections, as applicable, as the market transition from IBORs to alternative reference rates continues to develop. In August 2020, the FASB issued ASU 2020-06, described above under “Convertible Notes.” We adopted ASU 2020-06 on January 1, 2022, using the modified retrospective method of transition, which resulted in an aggregate decrease to our additional paid-in capital of $2.4 million, an aggregate decrease to our accumulated deficit of $2.0 million, and an aggregate increase to our convertible notes, net, of $476,000, as of January 1, 2022. In addition, the adoption of ASU 2020-06 decreased our diluted earnings per share by $0.02 for the six months ended June 30, 2022. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Restrictions on Cash and Cash Equivalents | The following table provides a reconciliation of cash, cash equivalents, and restricted cash on our consolidated balance sheets to the total amount shown on our consolidated statements of cash flows ($ in thousands): June 30, 2022 June 30, 2021 Cash and cash equivalents $ 283,580 $ 289,552 2021 FL4 CLO restricted cash — 50,000 Total cash, cash equivalents, and restricted cash shown in our consolidated statements of cash flows $ 283,580 $ 339,552 |
Restrictions on Cash and Cash Equivalents | The following table provides a reconciliation of cash, cash equivalents, and restricted cash on our consolidated balance sheets to the total amount shown on our consolidated statements of cash flows ($ in thousands): June 30, 2022 June 30, 2021 Cash and cash equivalents $ 283,580 $ 289,552 2021 FL4 CLO restricted cash — 50,000 Total cash, cash equivalents, and restricted cash shown in our consolidated statements of cash flows $ 283,580 $ 339,552 |
Loans Receivable, Net (Tables)
Loans Receivable, Net (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Receivables [Abstract] | |
Overall Statistics for Loans Receivable Portfolio | The following table details overall statistics for our loans receivable portfolio ($ in thousands): June 30, 2022 December 31, 2021 Number of loans 205 188 Principal balance $ 25,001,207 $ 22,156,437 Net book value $ 24,698,522 $ 21,878,338 Unfunded loan commitments (1) $ 4,623,298 $ 4,180,128 Weighted-average cash coupon (2) + 3.28 % + 3.19 % Weighted-average all-in yield (2) + 3.64 % + 3.52 % Weighted-average maximum maturity (years) (3) 3.5 3.4 (1) Unfunded commitments will primarily be funded to finance our borrowers’ construction or development of real estate-related assets, capital improvements of existing assets, or lease-related expenditures. These commitments will generally be funded over the term of each loan, subject in certain cases to an expiration date. (2) The weighted-average cash coupon and all-in yield are expressed as a spread over the relevant floating benchmark rates, which include USD LIBOR, SOFR, SONIA, GBP LIBOR, EURIBOR, and other indices, as applicable to each loan. As of June 30, 2022, substantially all of our loans by principal balance earned a floating rate of interest, primarily indexed to USD LIBOR. As of December 31, 2021, 99.5% of our loans by total loan exposure earned a floating rate of interest, primarily indexed to USD LIBOR. The other 0.5% of our loans earned a fixed rate of interest. In addition to cash coupon, all-in yield includes the amortization of deferred origination and extension fees, loan origination costs, and purchase discounts, as well as the accrual of exit fees. Excludes one loan accounted for under the cost-recovery method. |
Disclosure Details Of Loan Receivable Portfolio Based On Index Floor Rates | The following table details the index rate floors for our loans receivable portfolio as of June 30, 2022 ($ in thousands): Loans Receivable Principal Balance Index Rate Floors USD Non-USD (1) Total Fixed Rate $ 37,500 $ — $ 37,500 0.00% or no floor (2) 3,929,778 7,416,949 11,346,727 0.01% to 1.00% floor 9,483,006 700,123 10,183,129 1.01% to 1.50% floor 2,421,615 59,366 2,480,981 1.51% to 2.00% floor 687,584 — 687,584 2.01% or more floor 216,126 49,160 265,286 Total (3) $ 16,775,609 $ 8,225,598 $ 25,001,207 (1) Includes Euro, British Pound Sterling, Swedish Krona, Australian Dollar, Canadian Dollar, Swiss Franc, and Danish Krone currencies. (2) Includes a $286.3 million loan accounted for under the cost-recovery method. (3) As of June 30, 2022, the weighted-average index rate floor of our loan portfolio was 0.32%. Excluding 0.0% index rate floors and loans with no floor, the weighted-average index rate floor was 0.58%. |
Activity Relating to Loans Receivable Portfolio | Activity relating to our loans receivable portfolio was as follows ($ in thousands): Principal Balance Deferred Fees / Other Items (1) Net Book Value Loans Receivable, as of December 31, 2021 $ 22,156,437 $ (153,420) $ 22,003,017 Loan fundings 5,589,977 — 5,589,977 Loan repayments and sales (2,101,793) — (2,101,793) Unrealized (loss) gain on foreign currency translation (643,414) 4,851 (638,563) Deferred fees and other items — (58,716) (58,716) Amortization of fees and other items — 37,624 37,624 Loans Receivable, as of June 30, 2022 $ 25,001,207 $ (169,661) $ 24,831,546 CECL reserve (133,024) Loans Receivable, net, as of June 30, 2022 $ 24,698,522 |
Property Type and Geographic Distribution of Properties Securing Loans in Portfolio | The tables below detail the property type and geographic distribution of the properties securing the loans in our portfolio ($ in thousands): June 30, 2022 Property Type Number of Loans Net Book Value Total Loan Exposure (1) Percentage of Portfolio Office 67 $ 9,735,435 $ 10,771,841 41% Multifamily 83 6,392,372 6,500,608 25 Hospitality 29 4,979,191 5,014,033 19 Industrial 8 1,547,660 1,636,239 6 Retail 9 1,105,177 1,145,756 4 Other 9 1,071,711 1,440,984 5 Total loans receivable 205 $ 24,831,546 $ 26,509,461 100% CECL reserve (133,024) Loans receivable, net $ 24,698,522 Geographic Location Number of Loans Net Book Value Total Loan Exposure (1) Percentage of Portfolio United States Sunbelt 78 $ 6,530,957 $ 6,792,543 26% Northeast 40 5,341,968 5,667,952 21 West 34 3,476,401 4,394,168 17 Midwest 10 1,001,165 1,107,264 4 Northwest 6 317,396 321,937 1 Subtotal 168 16,667,887 18,283,864 69 International United Kingdom 20 3,179,066 3,210,116 12 Australia 5 1,451,073 1,463,974 6 Spain 4 1,241,840 1,247,087 5 Ireland 2 1,103,546 1,109,382 4 Sweden 1 482,377 486,202 2 Canada 1 49,071 49,160 — Other Europe 4 656,686 659,676 2 Subtotal 37 8,163,659 8,225,597 31 Total loans receivable 205 $ 24,831,546 $ 26,509,461 100% CECL reserve (133,024) Loans receivable, net $ 24,698,522 (1) In certain instances, we finance our loans through the non-recourse sale of a senior loan interest that is not included in our consolidated financial statements. See Note 2 for further discussion. Total loan exposure encompasses the entire loan we originated and financed, including $1.5 billion of such non-consolidated senior interests as of June 30, 2022. December 31, 2021 Property Type Number of Loans Net Book Value Total Loan Exposure (1)(2) Percentage of Portfolio Office 65 $ 9,473,039 $ 10,425,026 44% Multifamily 75 5,721,260 5,771,517 24 Hospitality 25 3,427,245 3,540,391 15 Industrial 6 1,102,452 1,185,606 5 Retail 8 871,241 909,970 4 Other 9 1,407,780 1,836,601 8 Total loans receivable 188 $ 22,003,017 $ 23,669,111 100% CECL reserve (124,679) Loans receivable, net $ 21,878,338 Geographic Location Number of Loans Net Book Value Total Loan Exposure (1)(2) Percentage of Portfolio United States Sunbelt 71 $ 5,907,230 $ 6,206,216 26% Northeast 37 4,615,076 4,934,295 21 West 33 3,520,942 4,199,208 18 Midwest 10 1,063,202 1,113,959 5 Northwest 5 251,121 252,700 1 Subtotal 156 15,357,571 16,706,378 71 International United Kingdom 17 2,342,146 2,598,033 11 Spain 4 1,374,364 1,380,763 6 Ireland 1 1,210,375 1,216,864 5 Sweden 1 546,319 551,149 2 Australia 4 504,668 509,885 2 Canada 2 68,558 68,478 — Other Europe 3 599,016 637,561 3 Subtotal 32 6,645,446 6,962,733 29 Total loans receivable 188 $ 22,003,017 $ 23,669,111 100% CECL reserve (124,679) Loans receivable, net $ 21,878,338 (1) In certain instances, we finance our loans through the non-recourse sale of a senior loan interest that is not included in our consolidated financial statements. See Note 2 for further discussion. Total loan exposure encompasses the entire loan we originated and financed, including $1.5 billion of such non-consolidated senior interests as of December 31, 2021. (2) Excludes investment exposure to the $379.3 million 2018 Single Asset Securitization. See Note 4 for details of the subordinate position we own in the 2018 Single Asset Securitization |
Principal Balance and Net Book Value of Loans Receivable Based on Internal Risk Ratings | The following table allocates the principal balance and net book value of our loans receivable based on our internal risk ratings ($ in thousands): June 30, 2022 December 31, 2021 Risk Rating Number of Loans Net Book Value Total Loan Exposure (1) Number of Loans Net Book Value Total Loan Exposure (1)(2) 1 12 $ 836,222 $ 868,722 8 $ 642,776 $ 645,854 2 39 5,856,051 6,178,959 28 5,200,533 5,515,250 3 143 15,773,096 17,089,166 141 13,604,027 14,944,045 4 10 2,081,368 2,086,305 10 2,270,872 2,277,653 5 1 284,809 286,309 1 284,809 286,309 Total loans receivable 205 $ 24,831,546 $ 26,509,461 188 $ 22,003,017 $ 23,669,111 CECL reserve (133,024) (124,679) Loans receivable, net $ 24,698,522 $ 21,878,338 (1) In certain instances, we finance our loans through the non-recourse sale of a senior loan interest that is not included in our consolidated financial statements. See Note 2 for further discussion. Total loan exposure encompasses the entire loan we originated and financed, including $1.5 billion of such non-consolidated senior interests as of both June 30, 2022 and December 31, 2021, respectively. |
Schedule Of Current Expected Credit Loss Reserve By Pool | The following table presents the activity in our loans receivable CECL reserve by investment pool for the three and six months ended June 30, 2022 and 2021 ($ in thousands): U.S. Loans Non-U.S. Loans Unique Loans Impaired Loans Total Loans Receivable, Net CECL reserve as of December 31, 2021 $ 26,885 $ 10,263 $ 32,657 $ 54,874 $ 124,679 Decrease in CECL reserve (644) (54) (1,760) — (2,458) CECL reserve as of March 31, 2022 $ 26,241 $ 10,209 $ 30,897 $ 54,874 $ 122,221 Increase in CECL reserve 7,070 1,135 2,598 — 10,803 CECL reserve as of June 30, 2022 $ 33,311 $ 11,344 $ 33,495 $ 54,874 $ 133,024 CECL reserve as of December 31, 2020 $ 42,995 $ 27,734 $ 33,159 $ 69,661 $ 173,549 Increase (decrease) in CECL reserve 1,539 (3,134) 146 — (1,449) CECL reserve as of March 31, 2021 $ 44,534 $ 24,600 $ 33,305 $ 69,661 $ 172,100 Decrease in CECL reserve (26,861) (15,771) (523) — (43,155) CECL reserve as of June 30, 2021 $ 17,673 $ 8,829 $ 32,782 $ 69,661 $ 128,945 |
Schedule of Net Book Value of Loan Portfolio By Year of Origination, Investment Pool and Risk Rating | The following tables present the net book value of our loan portfolio as of June 30, 2022 and December 31, 2021, respectively, by year of origination, investment pool, and risk rating ($ in thousands): Net Book Value of Loans Receivable by Year of Origination (1) As of June 30, 2022 Risk Rating 2022 2021 2020 2019 2018 Prior Total U.S. loans 1 $ 114,778 $ 469,851 $ 6,700 $ 199,931 $ — $ 44,962 $ 836,222 2 — 1,782,773 488,540 152,672 1,384,866 — 3,808,851 3 2,056,145 6,111,427 266,095 941,151 1,110,221 519,455 11,004,494 4 — — — 96,542 535,707 150,331 782,580 5 — — — — — — — Total U.S. loans $ 2,170,923 $ 8,364,051 $ 761,335 $ 1,390,296 $ 3,030,794 $ 714,748 $ 16,432,147 Non-U.S. loans 1 $ — $ — $ — $ — $ — $ — $ — 2 163,027 619,169 92,847 1,172,157 — — 2,047,200 3 971,870 1,495,245 — 847,533 146,416 — 3,461,064 4 — — — 325,688 — — 325,688 5 — — — — — — — Total Non-U.S. loans $ 1,134,897 $ 2,114,414 $ 92,847 $ 2,345,378 $ 146,416 $ — $ 5,833,952 Unique loans 1 $ — $ — $ — $ — $ — $ — $ — 2 — — — — — — — 3 1,130,039 — — — 177,499 — 1,307,538 4 — — — 290,945 682,155 — 973,100 5 — — — — — — — Total unique loans $ 1,130,039 $ — $ — $ 290,945 $ 859,654 $ — $ 2,280,638 Impaired loans 1 $ — $ — $ — $ — $ — $ — $ — 2 — — — — — — — 3 — — — — — — — 4 — — — — — — — 5 — — — — 284,809 — 284,809 Total impaired loans $ — $ — $ — $ — $ 284,809 $ — $ 284,809 Total loans receivable 1 $ 114,778 $ 469,851 $ 6,700 $ 199,931 $ — $ 44,962 $ 836,222 2 163,027 2,401,942 581,387 1,324,829 1,384,866 — 5,856,051 3 4,158,054 7,606,672 266,095 1,788,684 1,434,136 519,455 15,773,096 4 — — — 713,175 1,217,862 150,331 2,081,368 5 — — — — 284,809 — 284,809 Total loans receivable $ 4,435,859 $ 10,478,465 $ 854,182 $ 4,026,619 $ 4,321,673 $ 714,748 $ 24,831,546 CECL reserve (133,024) Loans receivable, net $ 24,698,522 (1) Date loan was originated or acquired by us. Origination dates are subsequently updated to reflect material loan modifications. Net Book Value of Loans Receivable by Year of Origination (1)(2) As of December 31, 2021 Risk Rating 2021 2020 2019 2018 2017 Prior Total U.S. loans 1 $ 125,873 $ — $ 196,017 $ 72,752 $ 248,134 $ — $ 642,776 2 876,536 427,839 221,513 1,134,176 354,775 82,274 3,097,113 3 7,511,883 358,448 1,109,170 1,116,872 292,520 228,264 10,617,157 4 — — 96,539 534,938 63,358 89,439 784,274 5 — — — — — — — Total U.S. loans $ 8,514,292 $ 786,287 $ 1,623,239 $ 2,858,738 $ 958,787 $ 399,977 $ 15,141,320 Non-U.S. loans 1 $ — $ — $ — $ — $ — $ — $ — 2 698,130 98,412 1,306,878 — — — 2,103,420 3 1,403,110 — 932,939 394,949 — — 2,730,998 4 — — 343,030 — — — 343,030 5 — — — — — — — Total Non-U.S. loans $ 2,101,240 $ 98,412 $ 2,582,847 $ 394,949 $ — $ — $ 5,177,448 Unique loans 1 $ — $ — $ — $ — $ — $ — $ — 2 — — — — — — — 3 — — — 197,018 — 58,854 255,872 4 — — 322,787 820,781 — — 1,143,568 5 — — — — — — — Total unique loans $ — $ — $ 322,787 $ 1,017,799 $ — $ 58,854 $ 1,399,440 Impaired loans 1 $ — $ — $ — $ — $ — $ — $ — 2 — — — — — — — 3 — — — — — — — 4 — — — — — — — 5 — — — 284,809 — — 284,809 Total impaired loans $ — $ — $ — $ 284,809 $ — $ — $ 284,809 Total loans receivable 1 $ 125,873 $ — $ 196,017 $ 72,752 $ 248,134 $ — $ 642,776 2 1,574,666 526,251 1,528,391 1,134,176 354,775 82,274 5,200,533 3 8,914,993 358,448 2,042,109 1,708,839 292,520 287,118 13,604,027 4 — — 762,356 1,355,719 63,358 89,439 2,270,872 5 — — — 284,809 — — 284,809 Total loans receivable $ 10,615,532 $ 884,699 $ 4,528,873 $ 4,556,295 $ 958,787 $ 458,831 $ 22,003,017 CECL reserve (124,679) Loans receivable, net $ 21,878,338 (1) Date loan was originated or acquired by us. Origination dates are subsequently updated to reflect material loan modifications. |
Other Assets and Liabilities (T
Other Assets and Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Deferred Costs, Capitalized, Prepaid, Other Assets and Other Liabilities Disclosure [Abstract] | |
Summary of Components of Other Assets | The following table details the components of our other assets ($ in thousands): June 30, 2022 December 31, 2021 Loan portfolio payments held by servicer (1) $ 252,401 $ 77,624 Accrued interest receivable 123,517 86,101 Derivative assets 83,982 30,531 Accounts receivable and other assets 503 572 Prepaid expenses 742 956 Debt securities held-to-maturity (2) — 78,083 CECL reserve — (70) Debt securities held-to-maturity, net — 78,013 Total $ 461,145 $ 273,797 (1) Primarily represents loan principal held by our third-party loan servicer as of the balance sheet date which were remitted to us during the subsequent remittance cycle. |
Schedule of Debt Securities, Held-to-maturity, Allowance for Credit Loss | The following table presents the activity in our debt securities CECL reserve for the three and six months ended June 30, 2022 and 2021 ($ in thousands): Debt Securities Held-To-Maturity Total CECL reserve as of December 31, 2021 $ 70 Decrease in CECL reserve (70) CECL reserve as March 31, 2022 $ — Decrease in CECL reserve — CECL reserve as of June 30, 2022 $ — CECL reserve as of December 31, 2020 $ 1,723 Decrease in CECL reserve (834) CECL reserve as of March 31, 2021 $ 889 Decrease in CECL reserve (767) CECL reserve as of June 30, 2021 $ 122 |
Summary of Components of Other Liabilities | The following table details the components of our other liabilities ($ in thousands): June 30, 2022 December 31, 2021 Accrued dividends payable $ 105,583 $ 104,271 Accrued interest payable 55,334 29,851 Accrued management and incentive fees payable 27,065 28,373 Secured debt repayments pending servicer remittance (1) 22,117 47,664 Current expected credit loss reserve for unfunded loan commitments (2) 8,434 6,263 Accounts payable and other liabilities 7,899 9,046 Derivative liabilities 2,589 5,890 Total $ 229,021 $ 231,358 (1) Represents pending transfers from our third-party loan servicer that were remitted to our banking counterparties during the subsequent remittance cycle. |
Schedule of Unfunded Loan Commitments Reserve | The following table presents the activity in the CECL reserve related to our unfunded loan commitments by investment pool for the three and six months ended June 30, 2022 and 2021 ($ in thousands): U.S. Loans Non-U.S. Loans Unique Loans Impaired Loans Total Unfunded Loan Commitments CECL reserve as of December 31, 2021 $ 4,072 $ 2,191 $ — $ — $ 6,263 Increase (decrease) in CECL reserve 209 (218) — — (9) CECL reserve as of March 31, 2022 $ 4,281 $ 1,973 $ — $ — $ 6,254 Increase in CECL reserve 2,042 138 — — 2,180 CECL reserve as of June 30, 2022 $ 6,323 $ 2,111 $ — $ — $ 8,434 CECL reserve as of December 31, 2020 $ 6,953 $ 2,994 $ 84 $ — $ 10,031 Increase (decrease) in CECL reserve 216 778 (4) — 990 CECL reserve as of March 31, 2021 $ 7,169 $ 3,772 $ 80 $ — $ 11,021 Decrease in CECL reserve (4,315) (2,632) (37) — (6,984) CECL reserve as of June 30, 2021 $ 2,854 $ 1,140 $ 43 $ — $ 4,037 |
Secured Debt, Net (Tables)
Secured Debt, Net (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Secured Debt Agreements | The following table details our secured debt ($ in thousands): Secured Debt Borrowings Outstanding June 30, 2022 December 31, 2021 Secured credit facilities $ 13,932,436 $ 12,299,580 Acquisition facility — — Total secured debt $ 13,932,436 $ 12,299,580 Deferred financing costs (1) (26,487) (19,538) Net book value of secured debt $ 13,905,949 $ 12,280,042 As of June 30, 2022, the following Senior Secured Notes, were outstanding ($ in thousands): Senior Secured Notes Face Value Interest Rate All-in Cost (1) Maturity Senior Secured Notes $ 400,000 3.75 % 4.04 % January 15, 2027 (1) Includes transaction expenses that are amortized through interest expense over the life of the Senior Secured Notes. The following table details the net book value of our Senior Secured Notes on our consolidated balance sheets ($ in thousands): June 30, 2022 December 31, 2021 Face value $ 400,000 $ 400,000 Deferred financing costs (5,438) (5,990) Net book value $ 394,562 $ 394,010 |
Credit Facilities | The following table details our secured credit facilities by spread over the applicable base rates as of June 30, 2022 ($ in thousands): June 30, 2022 Recourse Limitation Currency Lenders (1) Borrowings Wtd Avg. Maturity (2) Loan Count Collateral (3) Wtd Avg. Maturity (4) Wtd. Avg. Range USD 14 $ 8,101,964 2/8/2026 142 $ 11,873,368 2/8/2026 34% 25% - 100% EUR 6 2,119,463 7/9/2025 10 2,818,786 7/17/2025 45% 25% - 100% GBP 6 2,057,777 1/15/2026 18 2,698,806 1/17/2026 26% 25% - 50% Others (5) 4 1,653,232 5/23/2027 8 2,094,593 5/8/2027 25% 25% Total 14 $ 13,932,436 2/27/2026 177 $ 19,485,553 2/24/2026 34% 25% - 100% (1) Represents the number of lenders with fundings advanced in each respective currency, as well as the total number of facility lenders. (2) Based on the earlier of (i) the maximum maturity date of each secured credit facility, or (ii) the maximum maturity date of the collateral loans. (3) Represents the principal balance of the collateral assets. (4) Maximum maturity assumes all extension options are exercised by the borrower, however our loans may be repaid prior to such date. (5) Includes Australian Dollar, Canadian Dollar, Danish Krone, Swedish Krona, and Swiss Franc currencies. Term Loans Face Value Interest Rate (1) All-in Cost (1)(2) Maturity B-1 Term Loan $ 925,121 + 2.25 % + 2.53 % April 23, 2026 B-3 Term Loan $ 417,280 + 2.75 % + 3.42 % April 23, 2026 B-4 Term Loan $ 500,000 + 3.50 % + 3.98 % May 9, 2029 (1) The B-3 Term Loan and the B-4 Term Loan borrowings are subject to a floor of 0.50%. (2) Includes issue discount and transaction expenses that are amortized through interest expense over the life of the Term Loans. |
Schedule Of All In Cost Of Secured Credit Facilities | The following tables detail the spread of our secured debt as of June 30, 2022 and December 31, 2021 ($ in thousands): Six Months Ended June 30, 2022 June 30, 2022 Spread (1) New Financings (2) Total Borrowings Wtd. Avg. All-in Cost (1)(3)(4) Collateral (5) Wtd. Avg. All-in Yield (1)(3) Net Interest Margin (6) + 1.50% or less $ 1,329,670 $ 8,110,825 +1.52 % $ 10,957,198 +3.19 % +1.67 % + 1.51% to + 1.75% 322,306 2,630,077 +1.88 % 3,986,106 +3.58 % +1.70 % + 1.76% to + 2.00% 480,738 1,404,894 +2.16 % 2,077,065 +4.15 % +1.99 % + 2.01% or more 927,553 1,786,640 +2.57 % 2,465,184 +4.84 % +2.27 % Total $ 3,060,267 $ 13,932,436 +1.79 % $ 19,485,553 +3.58 % +1.79 % Year Ended December 31, 2021 December 31, 2021 Spread (1) New Financings (2) Total Borrowings Wtd. Avg. All-in Cost (1)(3)(4) Collateral (5) Wtd. Avg. All-in Yield (1)(3) Net Interest Margin (6) + 1.50% or less $ 5,306,925 $ 7,746,026 +1.52 % $ 10,193,801 +3.18 % +1.66 % + 1.51% to + 1.75% 1,477,177 2,710,587 +1.88 % 3,977,492 +3.55 % +1.67 % + 1.76% to + 2.00% 668,470 998,781 +2.13 % 1,458,074 +4.28 % +2.15 % + 2.01% or more 310,991 844,186 +2.49 % 1,413,014 +4.75 % +2.26 % Total $ 7,763,563 $ 12,299,580 +1.72 % $ 17,042,381 +3.49 % +1.77 % (1) The spread, all-in cost, and all-in yield are expressed over the relevant floating benchmark rates, which include USD LIBOR, SOFR, SONIA, GBP LIBOR, EURIBOR, and other indices as applicable. (2) Represents borrowings outstanding as of June 30, 2022 and December 31, 2021, respectively, for new financings during the six months ended June 30, 2022 and year ended December 31, 2021, respectively, based on the date collateral was initially pledged to each credit facility. (3) In addition to spread, the cost includes the associated deferred fees and expenses related to the respective borrowings. In addition to cash coupon, all-in yield includes the amortization of deferred origination and extension fees, loan origination costs, and purchase discounts, as well as the accrual of exit fees. (4) Represents the weighted-average all-in cost as of June 30, 2022 and December 31, 2021, respectively, and is not necessarily indicative of the spread applicable to recent or future borrowings. (5) Represents the principal balance of the collateral assets. (6) Represents the difference between the weighted-average all-in yield and weighted-average all-in cost. |
Securitized Debt Obligations,_2
Securitized Debt Obligations, Net (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Loans Managed, Securitized or Asset-Backed Financing Arrangement [Abstract] | |
Schedule of Information on Securitized Debt Obligations | The following tables detail our securitized debt obligations ($ in thousands): June 30, 2022 Securitized Debt Obligations Count Principal Balance Book Value Wtd. Avg. Yield/Cost (1)(2) Term (3) 2021 FL4 Collateralized Loan Obligation Collateral assets 32 $ 1,000,000 $ 1,000,000 + 3.51 % April 2025 Financing provided 1 803,750 798,466 + 1.57 % May 2038 2020 FL3 Collateralized Loan Obligation Collateral assets 16 1,000,000 1,000,000 + 3.21 % October 2024 Financing provided 1 808,750 805,362 + 2.03 % November 2037 2020 FL2 Collateralized Loan Obligation Collateral assets 18 1,500,000 1,500,000 + 3.31 % September 2024 Financing provided 1 1,243,125 1,238,073 + 1.39 % February 2038 Total Collateral assets 66 $ 3,500,000 $ 3,500,000 + 3.34 % Financing provided (4) 3 $ 2,855,625 $ 2,841,901 + 1.62 % (1) In addition to cash coupon, all-in yield includes the amortization of deferred origination and extension fees, loan origination costs, purchase discounts, and accrual of exit fees. (2) The weighted-average all-in yield and cost are expressed as a spread over the relevant floating benchmark rates, which include USD LIBOR and one-month SOFR, as applicable to each securitized debt obligation. As of June 30, 2022, the floating benchmark rate for the financing provided on the 2020 FL3 and 2020 FL2 CLOs is one-month SOFR, plus a credit spread adjustment of 0.11%. As of June 30, 2022, one-month SOFR was 1.69% and one-month USD LIBOR was 1.79%. (3) Loan term represents weighted-average final maturity, assuming all extension options are exercised by the borrower. Repayments of securitized debt obligations are tied to timing of the related collateral loan asset repayments. The term of these obligations represents the rated final distribution date of the securitizations. (4) During the three and six months ended June 30, 2022, we recorded $15.5 million and $26.5 million, respectively, of interest expense related to our securitized debt obligations. December 31, 2021 Securitized Debt Obligations Count Principal Balance Book Value Wtd. Avg. Yield/Cost (1)(2) Term (3) 2021 FL4 Collateralized Loan Obligation Collateral assets 34 $ 1,000,000 $ 1,000,000 + 3.42 % October 2024 Financing provided 1 803,750 797,373 + 1.66 % May 2038 2020 FL3 Collateralized Loan Obligation Collateral assets 18 1,000,000 1,000,000 + 3.06 % May 2024 Financing provided 1 808,750 804,096 + 2.10 % November 2037 2020 FL2 Collateralized Loan Obligation Collateral assets 21 1,500,000 1,500,000 + 3.15 % March 2024 Financing provided 1 1,243,125 1,236,593 + 1.45 % February 2038 Total Collateral assets 73 $ 3,500,000 $ 3,500,000 +3.20 % Financing provided (4) 3 $ 2,855,625 $ 2,838,062 +1.69 % (1) In addition to cash coupon, all-in yield includes the amortization of deferred origination and extension fees, loan origination costs, purchase discounts, and accrual of exit fees. (2) The weighted-average all-in yield and cost are expressed as a spread over the relevant floating benchmark rates, which include USD LIBOR and one-month SOFR, as applicable to each securitized debt obligation. As of December 31, 2021, the floating benchmark rate for the financing provided on the 2020 FL3 and 2020 FL2 CLOs is one-month SOFR, plus a credit spread adjustment of 0.11%. As of December 31, 2021, one-month SOFR was 0.05% and one-month USD LIBOR was 0.10%. (3) Loan term represents weighted-average final maturity, assuming all extension options are exercised by the borrower. Repayments of securitized debt obligations are tied to timing of the related collateral loan asset repayments. The term of these obligations represents the rated final distribution date of the securitizations. (4) During the three and six months ended June 30, 2021, we recorded $12.4 million and $24.5 million, respectively, of interest expense related to our securitized debt obligations. |
Asset-Specific Debt, Net (Table
Asset-Specific Debt, Net (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Summary of Asset-Specific Financings | The following tables detail our asset-specific debt ($ in thousands): June 30, 2022 Asset-Specific Debt Count Principal Balance Book Value Wtd. Avg. Yield/Cost (1) Wtd. Avg. Term (2) Collateral assets 4 $ 1,022,146 $ 1,003,394 + 4.30 % March 2026 Financing provided 4 $ 870,684 $ 860,007 + 3.02 % March 2026 December 31, 2021 Asset-Specific Debt Count Principal Balance Book Value Wtd. Avg. Yield/Cost (1) Wtd. Avg. Term (2) Collateral assets 4 $ 446,276 $ 435,727 + 4.04 % March 2025 Financing provided 4 $ 400,699 $ 393,824 + 2.78 % March 2025 (1) These floating rate loans and related liabilities are currency and indexed matched to the applicable benchmark rate relevant in each arrangement. In addition to cash coupon, yield/cost includes the amortization of deferred origination fees / financing costs. (2) The weighted-average term is determined based on the maximum maturity of the corresponding loans, assuming all extension options are exercised by the borrower. Our asset-specific debt is term-matched in each case to the corresponding collateral loans. |
Loan Participations Sold, Net (
Loan Participations Sold, Net (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Loan Participations Sold | The following tables detail our loan participations sold ($ in thousands): June 30, 2022 Loan Participations Sold Count Principal Balance Book Value Wtd. Avg. Yield/Cost (1) Term (2) Total Loan 1 $ 283,139 $ 280,560 + 4.86 % March 2027 Senior Participation 1 $ 226,511 $ 225,884 + 3.22 % March 2027 (1) This non-debt participation sold structure is inherently matched in terms of currency and interest rate. In addition to cash coupon, yield/cost includes the amortization of deferred fees / financing costs. (2) The term is determined based on the on maximum maturity of the loan, assuming all extension options are exercised by the borrower. |
Term Loans, Net (Tables)
Term Loans, Net (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The following table details our secured credit facilities by spread over the applicable base rates as of June 30, 2022 ($ in thousands): June 30, 2022 Recourse Limitation Currency Lenders (1) Borrowings Wtd Avg. Maturity (2) Loan Count Collateral (3) Wtd Avg. Maturity (4) Wtd. Avg. Range USD 14 $ 8,101,964 2/8/2026 142 $ 11,873,368 2/8/2026 34% 25% - 100% EUR 6 2,119,463 7/9/2025 10 2,818,786 7/17/2025 45% 25% - 100% GBP 6 2,057,777 1/15/2026 18 2,698,806 1/17/2026 26% 25% - 50% Others (5) 4 1,653,232 5/23/2027 8 2,094,593 5/8/2027 25% 25% Total 14 $ 13,932,436 2/27/2026 177 $ 19,485,553 2/24/2026 34% 25% - 100% (1) Represents the number of lenders with fundings advanced in each respective currency, as well as the total number of facility lenders. (2) Based on the earlier of (i) the maximum maturity date of each secured credit facility, or (ii) the maximum maturity date of the collateral loans. (3) Represents the principal balance of the collateral assets. (4) Maximum maturity assumes all extension options are exercised by the borrower, however our loans may be repaid prior to such date. (5) Includes Australian Dollar, Canadian Dollar, Danish Krone, Swedish Krona, and Swiss Franc currencies. Term Loans Face Value Interest Rate (1) All-in Cost (1)(2) Maturity B-1 Term Loan $ 925,121 + 2.25 % + 2.53 % April 23, 2026 B-3 Term Loan $ 417,280 + 2.75 % + 3.42 % April 23, 2026 B-4 Term Loan $ 500,000 + 3.50 % + 3.98 % May 9, 2029 (1) The B-3 Term Loan and the B-4 Term Loan borrowings are subject to a floor of 0.50%. (2) Includes issue discount and transaction expenses that are amortized through interest expense over the life of the Term Loans. |
Schedule of Net Book Value of Term Loans on Consolidated Balance Sheets | The following table details the net book value of our Term Loans on our consolidated balance sheets ($ in thousands): June 30, 2022 December 31, 2021 Face value $ 1,842,401 $ 1,349,271 Unamortized discount (15,494) (9,209) Deferred financing costs (16,965) (12,656) Net book value $ 1,809,942 $ 1,327,406 The following table details the net book value of our Convertible Notes on our consolidated balance sheets ($ in thousands): June 30, 2022 December 31, 2021 Face value $ 520,000 $ 622,500 Unamortized discount (6,950) (2,472) Deferred financing costs (56) (152) Net book value $ 512,994 $ 619,876 |
Senior Secured Notes, Net (Tabl
Senior Secured Notes, Net (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Senior Secured Notes, Net | The following table details our secured debt ($ in thousands): Secured Debt Borrowings Outstanding June 30, 2022 December 31, 2021 Secured credit facilities $ 13,932,436 $ 12,299,580 Acquisition facility — — Total secured debt $ 13,932,436 $ 12,299,580 Deferred financing costs (1) (26,487) (19,538) Net book value of secured debt $ 13,905,949 $ 12,280,042 As of June 30, 2022, the following Senior Secured Notes, were outstanding ($ in thousands): Senior Secured Notes Face Value Interest Rate All-in Cost (1) Maturity Senior Secured Notes $ 400,000 3.75 % 4.04 % January 15, 2027 (1) Includes transaction expenses that are amortized through interest expense over the life of the Senior Secured Notes. The following table details the net book value of our Senior Secured Notes on our consolidated balance sheets ($ in thousands): June 30, 2022 December 31, 2021 Face value $ 400,000 $ 400,000 Deferred financing costs (5,438) (5,990) Net book value $ 394,562 $ 394,010 |
Convertible Notes, Net (Tables)
Convertible Notes, Net (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Debt Instruments [Abstract] | |
Summary of Outstanding Convertible Senior Notes | As of June 30, 2022, the following convertible senior notes, or Convertible Notes, were outstanding ($ in thousands): Convertible Notes Issuance Face Value Interest Rate All-in Cost (1) Conversion Price (2) Maturity March 2018 $ 220,000 4.75% 5.33% $36.23 March 15, 2023 March 2022 $ 300,000 5.50% 5.94% $36.27 March 15, 2027 (1) Includes issuance costs that are amortized through interest expense over the life of the Convertible Notes using the effective interest method. |
Summary of Details of Net Book Value of Convertible Note | The following table details the net book value of our Term Loans on our consolidated balance sheets ($ in thousands): June 30, 2022 December 31, 2021 Face value $ 1,842,401 $ 1,349,271 Unamortized discount (15,494) (9,209) Deferred financing costs (16,965) (12,656) Net book value $ 1,809,942 $ 1,327,406 The following table details the net book value of our Convertible Notes on our consolidated balance sheets ($ in thousands): June 30, 2022 December 31, 2021 Face value $ 520,000 $ 622,500 Unamortized discount (6,950) (2,472) Deferred financing costs (56) (152) Net book value $ 512,994 $ 619,876 |
Summary of Details about Interest Expense | The following table details our interest expense related to the Convertible Notes ($ in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Cash coupon $ 8,132 $ 7,015 $ 15,384 $ 14,030 Discount and issuance cost amortization 790 869 1,578 1,722 Total interest expense $ 8,922 $ 7,884 $ 16,962 $ 15,752 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of Outstanding Foreign Exchange Derivatives Designated as Net Investment Hedges of Foreign Currency Risk | The following table details our outstanding foreign exchange derivatives that were designated as net investment hedges of foreign currency risk (notional amount in thousands): June 30, 2022 December 31, 2021 Foreign Currency Derivatives Number of Instruments Notional Amount Foreign Currency Derivatives Number of Instruments Notional Amount Buy USD / Sell SEK Forward 1 kr 995,700 Buy USD / Sell SEK Forward 1 kr 999,500 Buy USD / Sell EUR Forward 5 € 707,092 Buy USD / Sell EUR Forward 7 € 731,182 Buy USD / Sell GBP Forward 3 £ 670,013 Buy USD / Sell GBP Forward 2 £ 489,204 Buy USD / Sell AUD Forward 5 A$ 514,500 Buy USD / Sell AUD Forward 3 A$ 188,600 Buy USD / Sell DKK Forward 2 kr. 167,200 Buy USD / Sell CAD Forward 2 C$ 22,100 Buy USD / Sell CAD Forward 2 C$ 18,300 Buy USD / Sell CHF Forward 1 CHF 5,200 Buy USD / Sell CHF Forward 1 CHF 5,200 |
Summary of Non-designated Hedges | The following table details our outstanding foreign exchange derivatives that were non-designated hedges of foreign currency risk (notional amount in thousands): June 30, 2022 December 31, 2021 Non-designated Hedges Number of Instruments Notional Amount Non-designated Hedges Number of Instruments Notional Amount Buy EUR / Sell USD Forward 1 € 18,000 Buy GBP / Sell USD Forward 3 £ 170,600 Buy USD / Sell EUR Forward 2 € 18,000 Buy USD / Sell GBP Forward 3 £ 170,600 Buy GBP / Sell EUR 1 £ 8,410 Buy EUR / Sell USD Forward 2 € 165,560 Buy EUR / Sell GBP 1 € 8,410 Buy USD / Sell EUR Forward 3 € 165,560 Buy GBP / Sell USD Forward 1 £ 7,026 Buy CHF / Sell USD Forward 1 CHF 20,300 Buy USD / Sell GBP Forward 1 £ 7,026 Buy USD / Sell CHF Forward 1 CHF 20,300 Buy GBP / Sell EUR Forward 1 € 8,410 |
Schedule of Derivative Instruments in Statement of Operations | The following table presents the effect of our derivative financial instruments on our consolidated statements of operations ($ in thousands): Increase (Decrease) to Net Interest Income Recognized from Foreign Three Months Ended June 30, Six Months Ended June 30, Foreign Exchange Contracts in Hedging Relationships Location of Income (Expense) Recognized 2022 2021 2022 2021 Designated Hedges Interest Income (1) $ 3,238 $ 1,703 $ 4,982 $ 3,752 Non-Designated Hedges Interest Income (1) (7) (99) (8) (374) Non-Designated Hedges Interest Expense (2) 55 2,197 65 (7,131) Total $ 3,286 $ 3,801 $ 5,039 $ (3,753) (1) Represents the forward points earned on our foreign currency forward contracts, which reflect the interest rate differentials between the applicable base rate for our foreign currency investments and USD LIBOR. These forward contracts effectively convert the rate exposure to USD LIBOR, resulting in additional interest income earned in U.S. dollar terms. |
Summary of Fair Value of Derivative Financial Instruments | The following table summarizes the fair value of our derivative financial instruments ($ in thousands): Fair Value of Derivatives in an Asset Position (1) as of Fair Value of Derivatives in a Liability Position (2) as of Foreign Exchange Contracts June 30, 2022 December 31, 2021 June 30, 2022 December 31, 2021 Designated Hedges $ 83,143 $ 23,423 $ 1,807 $ 1,383 Non-Designated Hedges 839 7,108 782 4,507 Total Derivatives $ 83,982 $ 30,531 $ 2,589 $ 5,890 (1) Included in other assets in our consolidated balance sheets. |
Summary of Effect of Derivative Financial Instruments on Consolidated Statements of Operations | The following table presents the effect of our derivative financial instruments on our consolidated statements of operations ($ in thousands): Derivatives in Hedging Relationships Amount of Gain (Loss) Recognized in OCI on Derivatives Location of Amount of Loss Reclassified from Accumulated OCI into Income Three Months Ended June 30, 2022 Six Months Ended June 30, 2022 Three Months Ended June 30, 2022 Six Months Ended June 30, 2022 Net Investment Hedges Foreign exchange contracts (1) $ 128,685 $ 174,195 Interest Expense $ — $ — Cash Flow Hedges Interest rate derivatives — — Interest Expense (2) — (4) Total $ 128,685 $ 174,195 $ — $ (4) (1) During the three and six months ended June 30, 2022, we received net cash settlements of $96.2 million and $122.5 million on our foreign currency forward contracts, respectively. Those amounts are included as a component of accumulated other comprehensive income on our consolidated balance sheets. |
Equity (Tables)
Equity (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
Summary of Class A Common Stock Issuances | The following table details our issuance of class A common stock during the six months ended June 30, 2022 ($ in thousands, except share and per share data): Class A Common Stock Offerings June 30, 2022 Shares issued (1) 1,675,000 Gross / net issue price per share (2) $31.55 / $31.23 Net proceeds (3) $52,155 (1) Issuance represents shares issued under our at-the-market program. (2) Represents the gross price per share issued, as well as the net proceeds per share after underwriting or sales discounts and commissions. (3) Net proceeds represent proceeds received from the underwriters less applicable transaction costs. |
Schedule of Movement in Outstanding Shares of Class A Common Stock, Restricted Class A Common Stock and Deferred Stock Units | The following table details the movement in our outstanding shares of class A common stock, including restricted class A common stock and deferred stock units: Six Months Ended June 30, Common Stock Outstanding (1) 2022 2021 Beginning balance 168,543,370 147,086,722 Issuance of class A common stock (2)(3) 1,678,420 949 Issuance of restricted class A common stock, net (4) 436,831 234,838 Issuance of deferred stock units 27,455 21,374 Ending balance 170,686,076 147,343,883 (1) Includes 391,027 and 328,065 deferred stock units held by members of our board of directors as of June 30, 2022 and 2021, respectively. (2) Includes 3,420 and 949 shares issued under our dividend reinvestment program during the six months ended June 30, 2022 and 2021, respectively. (3) Includes 13,197 restricted shares issued to our board of directors during the six months ended June 30, 2022. |
Schedule of Dividend Activity | The following table details our dividend activity ($ in thousands, except per share data): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Dividends declared per share of common stock $ 0.62 $ 0.62 $ 1.24 $ 1.24 Class A common stock dividends declared $ 105,583 $ 91,150 $ 211,158 $ 182,309 Deferred stock unit dividends declared 229 197 455 387 Total dividends declared $ 105,812 $ 91,347 $ 211,613 $ 182,696 |
Schedule of Basic and Diluted Earnings Per Share, or EPS, Based on Weighted-Average of Both Restricted and Unrestricted Class A Common Stock Outstanding | The following table sets forth the calculation of basic and diluted net income per share of class A common stock based on the weighted-average of both restricted and unrestricted class A common stock outstanding ($ in thousands, except per share data): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Basic Earnings: Net income (1) $ 93,250 $ 131,595 $ 192,937 $ 211,497 Weighted-average shares outstanding, basic 170,665,601 147,342,822 169,963,730 147,339,895 Per share amount, basic $ 0.55 $ 0.89 $ 1.14 $ 1.44 Diluted Earnings: Net income (1) $ 93,250 $ 131,595 $ 192,937 $ 211,497 Add back: Interest expense on Convertible Notes, net (2)(3) 5,913 — 8,313 — Diluted earnings $ 99,163 $ 131,595 $ 201,250 $ 211,497 Weighted-average shares outstanding, basic 170,665,601 147,342,822 169,963,730 147,339,895 Effect of dilutive securities - Convertible Notes (3)(4) 14,344,204 — 10,368,611 — Weighted-average common shares outstanding, diluted 185,009,805 147,342,822 180,332,341 147,339,895 Per share amount, diluted $ 0.54 $ 0.89 $ 1.12 $ 1.44 (1) Represents net income attributable to Blackstone Mortgage Trust. (2) Represents the interest expense on our convertible notes, net of incentive fees. (3) For the three and six months ended June 30, 2021, prior to the adoption of ASU 2020-06, our convertible notes were not assessed for dilution as we had the intent and ability to settle the convertible notes in cash. Refer to Note 2 and Note 11 for further discussion of ASU 2020-06 and our convertible notes, respectively. (4) For the three months ended June 30, 2022, represents 8.3 million and 6.1 million of weighted-average shares, using the if-converted method, related to our March 2022 and March 2018 Convertible Notes, respectively. For the six months ended June 30, 2022, represents 4.3 million and 6.1 million of weighted-average shares, using the in-converted method, related to our March 2022 convertible notes, which were issued on March 29, 2022, and our March 2018 convertible notes, respectively. Our May 2017 convertible notes were elected to be settled in cash and were repaid during the six months ended June 30, 2022. Therefore, the May 2017 convertible notes do not have any impact on our diluted earnings per share. |
Other Expenses (Tables)
Other Expenses (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Other Income and Expenses [Abstract] | |
Schedule of General and Administrative Expenses | General and Administrative Expenses General and administrative expenses consisted of the following ($ in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Professional services $ 2,693 $ 2,043 $ 5,390 $ 3,861 Operating and other costs 1,298 606 2,311 1,301 Subtotal (1) 3,991 2,649 7,701 5,162 Non-cash compensation expenses Restricted class A common stock earned 8,245 7,895 16,723 15,855 Director stock-based compensation 173 125 345 250 Subtotal 8,418 8,020 17,068 16,105 Total general and administrative expenses $ 12,409 $ 10,669 $ 24,769 $ 21,267 (1) During the three and six months ended June 30, 2022, we recognized an aggregate $227,000 and $544,000, respectively, of expenses related to our Multifamily Joint Venture. During the three and six months ended June 30, 2021, we recognized an aggregate $197,000 and $433,000, respectively, of expenses related to our Multifamily Joint Venture. |
Stock-Based Incentive Plans (Ta
Stock-Based Incentive Plans (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Movement in Outstanding Shares of Restricted Class A Common Stock and Weighted-Average Grant Date Fair Value Per Share | The following table details the movement in our outstanding shares of restricted class A common stock and the weighted-average grant date fair value per share: Restricted Class A Common Stock Weighted-Average Grant Date Fair Value Per Share Balance as of December 31, 2021 1,706,121 $ 31.19 Granted 440,831 30.96 Vested (521,692) 32.05 Forfeited (4,000) 31.57 Balance as of June 30, 2022 1,621,260 $ 30.85 |
Fair Values (Tables)
Fair Values (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value on Recurring Basis | The following table summarizes our assets and liabilities measured at fair value on a recurring basis ($ in thousands): June 30, 2022 December 31, 2021 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets Derivatives $ — $ 83,982 $ — $ 83,982 $ — $ 30,531 $ — $ 30,531 Liabilities Derivatives $ — $ 2,589 $ — $ 2,589 $ — $ 5,890 $ — $ 5,890 |
Schedule of Details of Carrying Amount, Face Amount, and Fair Value of Financial Instruments | The following table details the book value, face amount, and fair value of the financial instruments described in Note 2 ($ in thousands): June 30, 2022 December 31, 2021 Book Value Face Amount Fair Value Book Value Face Amount Fair Value Financial assets Cash and cash equivalents $ 283,580 $ 283,580 $ 283,580 $ 551,154 $ 551,154 $ 551,154 Loans receivable, net 24,698,522 25,001,207 24,609,487 21,878,338 22,156,437 22,013,762 Debt securities held-to-maturity, net (1) — — — 78,013 79,200 77,229 Financial liabilities Secured debt, net 13,905,949 13,932,436 13,679,307 12,280,042 12,299,580 12,299,580 Securitized debt obligations, net 2,841,901 2,855,625 2,783,170 2,838,062 2,855,625 2,850,399 Asset-specific debt, net 860,007 870,684 863,919 393,824 400,699 400,699 Loan participations sold, net 225,884 226,511 226,511 — — — Secured term loans, net 1,809,942 1,842,401 1,745,307 1,327,406 1,349,271 1,335,844 Senior secured notes, net 394,562 400,000 349,212 394,010 400,000 399,012 Convertible notes, net 512,994 520,000 490,006 619,876 622,500 630,821 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Variable Interest Entity, Primary Beneficiary, Does Not Hold Majority Voting Interest, Disclosures [Abstract] | |
Summary of Assets and Liabilities of Consolidated VIE | The following table details the assets and liabilities of our consolidated VIEs ($ in thousands): June 30, 2022 December 31, 2021 Assets: Loans receivable $ 3,449,500 $ 3,486,750 Current expected credit loss reserve (5,950) (4,502) Loans receivable, net 3,443,550 3,482,248 Other assets 59,745 20,746 Total assets $ 3,503,295 $ 3,502,994 Liabilities: Securitized debt obligations, net $ 2,841,901 $ 2,838,062 Other liabilities 3,316 1,800 Total liabilities $ 2,845,217 $ 2,839,862 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Principal Contractual Obligations | Our contractual principal debt repayments as of June 30, 2022 were as follows ($ in thousands): Year Secured Debt (1) Asset-Specific Debt (1) Term Loans (2) Senior Secured Notes Convertible Notes (3) Total (4) 2022 (remaining) $ 81,734 $ — $ 9,369 $ — $ — $ 91,103 2023 570,343 — 18,738 — 220,000 809,081 2024 3,312,465 — 18,738 — — 3,331,203 2025 1,275,006 632,308 18,738 — — 1,926,052 2026 4,738,331 — 1,299,318 — — 6,037,649 2027 3,221,663 238,376 5,000 400,000 300,000 4,165,039 Thereafter 732,894 — 472,500 — — 1,205,394 Total obligation $ 13,932,436 $ 870,684 $ 1,842,401 $ 400,000 $ 520,000 $ 17,565,521 (1) The allocation of repayments under our secured debt and asset-specific debt is based on the earlier of (i) the maturity date of each agreement, or (ii) the maximum maturity date of the collateral loans, assuming all extension options are exercised by the borrower. (2) The Term Loans are partially amortizing, with an amount equal to 1.0% per annum of the initial principal balance due in quarterly installments. Refer to Note 9 for further details on our term loans. (3) Reflects the outstanding principal balance of Convertible Notes, excluding any potential conversion premium. Refer to Note 11 for further details on our Convertible Notes. |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Detail) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||||
Jun. 30, 2022 USD ($) credit_facility loan $ / shares | Jun. 30, 2021 USD ($) $ / shares | Jun. 30, 2022 USD ($) credit_facility loan $ / shares | Jun. 30, 2021 USD ($) $ / shares | Mar. 31, 2022 USD ($) | Jan. 01, 2022 USD ($) | Dec. 31, 2021 USD ($) | Mar. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Apr. 30, 2017 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Joint venture capital contribution percentage | 85% | |||||||||
Borrower escrows | $ 623,300 | $ 623,300 | $ 531,200 | |||||||
CECL reserve | 133,024 | $ 128,945 | 133,024 | $ 128,945 | $ 122,221 | 124,679 | $ 172,100 | $ 173,549 | ||
Principal balance | 24,831,546 | 24,831,546 | 22,003,017 | |||||||
Decrease to additional paid-in capital | (5,440,364) | (5,440,364) | (5,373,029) | |||||||
Decrease to accumulated deficit | $ (811,554) | $ (811,554) | $ (794,832) | |||||||
Decrease to diluted earnings per share (in dollars per share) | $ / shares | $ (0.54) | $ (0.89) | $ (1.12) | $ (1.44) | ||||||
Credit Spread Option | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Number of loans | loan | 43 | 43 | ||||||||
Number of credit facilities | credit_facility | 8 | 8 | ||||||||
Average compounded SOFR (percentage) | 1.69% | 1.69% | ||||||||
Credit Spread Option | United State Dollar LIBOR Rate | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Average compounded SOFR (percentage) | 1.79% | 1.79% | ||||||||
Level 3 | Measurement Input, Cap Rate | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Measurement input (percentage) | 0.0480 | 0.0480 | ||||||||
Level 3 | Measurement Input, Discount Rate | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Measurement input (percentage) | 0.0830 | 0.0830 | ||||||||
Level 3 | Fair Value, Nonrecurring | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
CECL reserve | $ 54,900 | $ 54,900 | ||||||||
Principal balance | $ 286,300 | $ 286,300 | ||||||||
Accounting Standards Update 2020-06 | Cumulative Effect, Period of Adoption, Adjustment | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Decrease to additional paid-in capital | $ 2,400 | |||||||||
Decrease to accumulated deficit | 2,000 | |||||||||
Increase to convertible notes, net | $ 476 | |||||||||
Decrease to diluted earnings per share (in dollars per share) | $ / shares | $ 0.02 | |||||||||
Walker and Dunlop | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Joint venture capital contribution percentage | 15% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Reconciliation of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | Dec. 31, 2020 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 283,580 | $ 551,154 | $ 289,552 | |
2021 FL4 CLO restricted cash | 0 | 50,000 | ||
Total cash, cash equivalents, and restricted cash shown in our consolidated statements of cash flows | $ 283,580 | $ 551,154 | $ 339,552 | $ 289,970 |
Loans Receivable, Net - Overall
Loans Receivable, Net - Overall Statistics for Loans Receivable Portfolio (Detail) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 USD ($) SecurityLoan loan | Dec. 31, 2021 USD ($) SecurityLoan loan | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of loans | SecurityLoan | 205 | 188 |
Principal balance | $ 25,001,207 | $ 22,156,437 |
Net book value | $ 24,698,522 | $ 21,878,338 |
Weighted-average maximum maturity (years) | 3 years 6 months | 3 years 4 months 24 days |
Percentage of Portfolio | 100% | 100% |
Number of loans accounted for under cost-recovery method | loan | 1 | 1 |
Unfunded Loan Commitment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Unfunded loan commitments | $ 4,623,298 | $ 4,180,128 |
Floating Rate Mortgage | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percentage of Portfolio | 99.50% | |
Fixed Rate Mortgage | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percentage of Portfolio | 0.50% | |
Prepayment Restrictions Including Yield Maintenance Lock Out Provisions | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percentage of Portfolio | 58% | 56% |
Without Prepayment Restrictions | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percentage of Portfolio | 42% | 44% |
LIBOR | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Weighted-average cash coupon (percentage) | 3.28% | 3.19% |
Weighted-average all-in yield (percentage) | 3.64% | 3.52% |
Loans Receivable, Net - Schedul
Loans Receivable, Net - Schedule Of Loan Receivable Portfolio Based On Floor Rate (Detail) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Disclosure Details Of Loan Receivable Portfolio Based On Floor Rate [Line Items] | ||
Loans receivable | $ 25,001,207 | $ 22,156,437 |
Loans accounted under cost-recovery method | $ 286,300 | |
Weighted Average | ||
Disclosure Details Of Loan Receivable Portfolio Based On Floor Rate [Line Items] | ||
Weighted-average index rate floor | 0.32% | |
Excluding 0.0% index rate floors, weighted-average index rate floor | 0.58% | |
Non-USD | ||
Disclosure Details Of Loan Receivable Portfolio Based On Floor Rate [Line Items] | ||
Loans receivable | $ 8,225,598 | |
USD | ||
Disclosure Details Of Loan Receivable Portfolio Based On Floor Rate [Line Items] | ||
Loans receivable | 16,775,609 | |
Fixed Rate | ||
Disclosure Details Of Loan Receivable Portfolio Based On Floor Rate [Line Items] | ||
Loans receivable | 37,500 | |
Fixed Rate | Non-USD | ||
Disclosure Details Of Loan Receivable Portfolio Based On Floor Rate [Line Items] | ||
Loans receivable | 0 | |
Fixed Rate | USD | ||
Disclosure Details Of Loan Receivable Portfolio Based On Floor Rate [Line Items] | ||
Loans receivable | 37,500 | |
0.00% or no floor | ||
Disclosure Details Of Loan Receivable Portfolio Based On Floor Rate [Line Items] | ||
Loans receivable | 11,346,727 | |
0.00% or no floor | Non-USD | ||
Disclosure Details Of Loan Receivable Portfolio Based On Floor Rate [Line Items] | ||
Loans receivable | 7,416,949 | |
0.00% or no floor | USD | ||
Disclosure Details Of Loan Receivable Portfolio Based On Floor Rate [Line Items] | ||
Loans receivable | 3,929,778 | |
0.01% to 1.00% floor | ||
Disclosure Details Of Loan Receivable Portfolio Based On Floor Rate [Line Items] | ||
Loans receivable | 10,183,129 | |
0.01% to 1.00% floor | Non-USD | ||
Disclosure Details Of Loan Receivable Portfolio Based On Floor Rate [Line Items] | ||
Loans receivable | 700,123 | |
0.01% to 1.00% floor | USD | ||
Disclosure Details Of Loan Receivable Portfolio Based On Floor Rate [Line Items] | ||
Loans receivable | 9,483,006 | |
1.01% to 1.50% floor | ||
Disclosure Details Of Loan Receivable Portfolio Based On Floor Rate [Line Items] | ||
Loans receivable | 2,480,981 | |
1.01% to 1.50% floor | Non-USD | ||
Disclosure Details Of Loan Receivable Portfolio Based On Floor Rate [Line Items] | ||
Loans receivable | 59,366 | |
1.01% to 1.50% floor | USD | ||
Disclosure Details Of Loan Receivable Portfolio Based On Floor Rate [Line Items] | ||
Loans receivable | 2,421,615 | |
1.51% to 2.00% floor | ||
Disclosure Details Of Loan Receivable Portfolio Based On Floor Rate [Line Items] | ||
Loans receivable | 687,584 | |
1.51% to 2.00% floor | Non-USD | ||
Disclosure Details Of Loan Receivable Portfolio Based On Floor Rate [Line Items] | ||
Loans receivable | 0 | |
1.51% to 2.00% floor | USD | ||
Disclosure Details Of Loan Receivable Portfolio Based On Floor Rate [Line Items] | ||
Loans receivable | 687,584 | |
2.01% or more floor | ||
Disclosure Details Of Loan Receivable Portfolio Based On Floor Rate [Line Items] | ||
Loans receivable | 265,286 | |
2.01% or more floor | Non-USD | ||
Disclosure Details Of Loan Receivable Portfolio Based On Floor Rate [Line Items] | ||
Loans receivable | 49,160 | |
2.01% or more floor | USD | ||
Disclosure Details Of Loan Receivable Portfolio Based On Floor Rate [Line Items] | ||
Loans receivable | $ 216,126 |
Loans Receivable, Net - Activit
Loans Receivable, Net - Activity Relating to Loans Receivable Portfolio (Detail) - USD ($) $ in Thousands | 6 Months Ended | |||||
Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | |
Principal Balance | ||||||
Beginning balance | $ 22,156,437 | |||||
Loan fundings | 5,589,977 | |||||
Loan repayments and sales | (2,101,793) | |||||
Unrealized (loss) gain on foreign currency translation | (643,414) | |||||
Ending balance | 25,001,207 | |||||
Deferred Fees / Other Items | ||||||
Beginning balance | (153,420) | |||||
Unrealized (loss) gain on foreign currency translation | 4,851 | |||||
Deferred fees and other items | (58,716) | |||||
Amortization of fees and other items | 37,624 | |||||
Ending balance | (169,661) | |||||
Net Book Value | ||||||
Beginning balance | 22,003,017 | |||||
Loan fundings | 5,589,977 | |||||
Loan repayments and sales | (2,101,793) | |||||
Unrealized (loss) gain on foreign currency translation | (638,563) | |||||
Deferred fees and other items | (58,716) | |||||
Amortization of fees and other items | 37,624 | |||||
Ending balance | 24,831,546 | |||||
CECL reserve | (133,024) | $ (122,221) | $ (124,679) | $ (128,945) | $ (172,100) | $ (173,549) |
Loans receivable, net | $ 24,698,522 | $ 21,878,338 |
Loans Receivable, Net - Propert
Loans Receivable, Net - Property Type and Geographic Distribution of Properties Securing Loans in Portfolio (Detail) $ in Thousands | Jun. 30, 2022 USD ($) SecurityLoan | Mar. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) SecurityLoan | Jun. 30, 2021 USD ($) | Mar. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Number of loans | SecurityLoan | 205 | 188 | ||||
Principal balance | $ 24,831,546 | $ 22,003,017 | ||||
CECL reserve | (133,024) | $ (122,221) | (124,679) | $ (128,945) | $ (172,100) | $ (173,549) |
Loans receivable, net | 24,698,522 | 21,878,338 | ||||
Total Loan Exposure | $ 26,509,461 | $ 23,669,111 | ||||
Percentage of Portfolio | 100% | 100% | ||||
Total loan exposure including senior interests | $ 1,500,000 | $ 1,500,000 | ||||
2018 Single Asset Securitization | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loan amount, securitized | $ 379,300 | |||||
Subtotal | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Number of loans | SecurityLoan | 168 | 156 | ||||
Principal balance | $ 16,667,887 | $ 15,357,571 | ||||
Total Loan Exposure | $ 18,283,864 | $ 16,706,378 | ||||
Percentage of Portfolio | 69% | 71% | ||||
Sunbelt | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Number of loans | SecurityLoan | 78 | 71 | ||||
Principal balance | $ 6,530,957 | $ 5,907,230 | ||||
Total Loan Exposure | $ 6,792,543 | $ 6,206,216 | ||||
Percentage of Portfolio | 26% | 26% | ||||
Northeast | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Number of loans | SecurityLoan | 40 | 37 | ||||
Principal balance | $ 5,341,968 | $ 4,615,076 | ||||
Total Loan Exposure | $ 5,667,952 | $ 4,934,295 | ||||
Percentage of Portfolio | 21% | 21% | ||||
West | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Number of loans | SecurityLoan | 34 | 33 | ||||
Principal balance | $ 3,476,401 | $ 3,520,942 | ||||
Total Loan Exposure | $ 4,394,168 | $ 4,199,208 | ||||
Percentage of Portfolio | 17% | 18% | ||||
Midwest | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Number of loans | SecurityLoan | 10 | 10 | ||||
Principal balance | $ 1,001,165 | $ 1,063,202 | ||||
Total Loan Exposure | $ 1,107,264 | $ 1,113,959 | ||||
Percentage of Portfolio | 4% | 5% | ||||
Northwest | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Number of loans | SecurityLoan | 6 | 5 | ||||
Principal balance | $ 317,396 | $ 251,121 | ||||
Total Loan Exposure | $ 321,937 | $ 252,700 | ||||
Percentage of Portfolio | 1% | 1% | ||||
Subtotal | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Number of loans | SecurityLoan | 37 | 32 | ||||
Principal balance | $ 8,163,659 | $ 6,645,446 | ||||
Total Loan Exposure | $ 8,225,597 | $ 6,962,733 | ||||
Percentage of Portfolio | 31% | 29% | ||||
United Kingdom | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Number of loans | SecurityLoan | 20 | 17 | ||||
Principal balance | $ 3,179,066 | $ 2,342,146 | ||||
Total Loan Exposure | $ 3,210,116 | $ 2,598,033 | ||||
Percentage of Portfolio | 12% | 11% | ||||
Australia | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Number of loans | SecurityLoan | 5 | 4 | ||||
Principal balance | $ 1,451,073 | $ 504,668 | ||||
Total Loan Exposure | $ 1,463,974 | $ 509,885 | ||||
Percentage of Portfolio | 6% | 2% | ||||
Spain | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Number of loans | SecurityLoan | 4 | 4 | ||||
Principal balance | $ 1,241,840 | $ 1,374,364 | ||||
Total Loan Exposure | $ 1,247,087 | $ 1,380,763 | ||||
Percentage of Portfolio | 5% | 6% | ||||
Ireland | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Number of loans | SecurityLoan | 2 | 1 | ||||
Principal balance | $ 1,103,546 | $ 1,210,375 | ||||
Total Loan Exposure | $ 1,109,382 | $ 1,216,864 | ||||
Percentage of Portfolio | 4% | 5% | ||||
Sweden | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Number of loans | SecurityLoan | 1 | 1 | ||||
Principal balance | $ 482,377 | $ 546,319 | ||||
Total Loan Exposure | $ 486,202 | $ 551,149 | ||||
Percentage of Portfolio | 2% | 2% | ||||
Canada | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Number of loans | SecurityLoan | 1 | 2 | ||||
Principal balance | $ 49,071 | $ 68,558 | ||||
Total Loan Exposure | $ 49,160 | $ 68,478 | ||||
Percentage of Portfolio | 0% | 0% | ||||
Other Europe | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Number of loans | SecurityLoan | 4 | 3 | ||||
Principal balance | $ 656,686 | $ 599,016 | ||||
Total Loan Exposure | $ 659,676 | $ 637,561 | ||||
Percentage of Portfolio | 2% | 3% | ||||
Office | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Number of loans | SecurityLoan | 67 | 65 | ||||
Principal balance | $ 9,735,435 | $ 9,473,039 | ||||
Total Loan Exposure | $ 10,771,841 | $ 10,425,026 | ||||
Percentage of Portfolio | 41% | 44% | ||||
Multifamily | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Number of loans | SecurityLoan | 83 | 75 | ||||
Principal balance | $ 6,392,372 | $ 5,721,260 | ||||
Total Loan Exposure | $ 6,500,608 | $ 5,771,517 | ||||
Percentage of Portfolio | 25% | 24% | ||||
Hospitality | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Number of loans | SecurityLoan | 29 | 25 | ||||
Principal balance | $ 4,979,191 | $ 3,427,245 | ||||
Total Loan Exposure | $ 5,014,033 | $ 3,540,391 | ||||
Percentage of Portfolio | 19% | 15% | ||||
Industrial | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Number of loans | SecurityLoan | 8 | 6 | ||||
Principal balance | $ 1,547,660 | $ 1,102,452 | ||||
Total Loan Exposure | $ 1,636,239 | $ 1,185,606 | ||||
Percentage of Portfolio | 6% | 5% | ||||
Retail | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Number of loans | SecurityLoan | 9 | 8 | ||||
Principal balance | $ 1,105,177 | $ 871,241 | ||||
Total Loan Exposure | $ 1,145,756 | $ 909,970 | ||||
Percentage of Portfolio | 4% | 4% | ||||
Other | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Number of loans | SecurityLoan | 9 | 9 | ||||
Principal balance | $ 1,071,711 | $ 1,407,780 | ||||
Total Loan Exposure | $ 1,440,984 | $ 1,836,601 | ||||
Percentage of Portfolio | 5% | 8% |
Loans Receivable, Net - Princip
Loans Receivable, Net - Principal Balance and Net Book Value of Loans Receivable Based on Internal Risk Ratings (Detail) $ in Thousands | Jun. 30, 2022 USD ($) SecurityLoan | Mar. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) SecurityLoan | Jun. 30, 2021 USD ($) | Mar. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Number of loans | SecurityLoan | 205 | 188 | ||||
Principal balance | $ 24,831,546 | $ 22,003,017 | ||||
CECL reserve | (133,024) | $ (122,221) | (124,679) | $ (128,945) | $ (172,100) | $ (173,549) |
Loans receivable, net | 24,698,522 | 21,878,338 | ||||
Total Loan Exposure | 26,509,461 | 23,669,111 | ||||
Total loan exposure including senior interests | $ 1,500,000 | 1,500,000 | ||||
2018 Single Asset Securitization | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loan amount, securitized | $ 379,300 | |||||
1 | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Number of loans | SecurityLoan | 12 | 8 | ||||
Principal balance | $ 836,222 | $ 642,776 | ||||
Total Loan Exposure | $ 868,722 | $ 645,854 | ||||
2 | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Number of loans | SecurityLoan | 39 | 28 | ||||
Principal balance | $ 5,856,051 | $ 5,200,533 | ||||
Total Loan Exposure | $ 6,178,959 | $ 5,515,250 | ||||
3 | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Number of loans | SecurityLoan | 143 | 141 | ||||
Principal balance | $ 15,773,096 | $ 13,604,027 | ||||
Total Loan Exposure | $ 17,089,166 | $ 14,944,045 | ||||
4 | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Number of loans | SecurityLoan | 10 | 10 | ||||
Principal balance | $ 2,081,368 | $ 2,270,872 | ||||
Total Loan Exposure | $ 2,086,305 | $ 2,277,653 | ||||
5 | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Number of loans | SecurityLoan | 1 | 1 | ||||
Principal balance | $ 284,809 | $ 284,809 | ||||
Total Loan Exposure | $ 286,309 | $ 286,309 |
Loans Receivable, Net - Additio
Loans Receivable, Net - Additional Information (Detail) | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2022 USD ($) | Mar. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Jun. 30, 2021 USD ($) | Mar. 31, 2021 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Weighted-average risk rating on loan exposure | 2.8 | 2.8 | 2.8 | |||||
Increase (decrease) in CECL reserve | $ 10,803,000 | $ (2,458,000) | $ (43,155,000) | $ (1,449,000) | ||||
CECL reserve | 133,024,000 | $ 122,221,000 | $ 124,679,000 | 128,945,000 | $ 172,100,000 | $ 133,024,000 | $ 128,945,000 | $ 173,549,000 |
Reversal of remaining CECL reserve | (12,983,000) | $ 50,906,000 | (10,446,000) | 52,199,000 | ||||
Loans held | 26,509,461,000 | 23,669,111,000 | 26,509,461,000 | |||||
Multifamily | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Loans held | 6,500,608,000 | 5,771,517,000 | 6,500,608,000 | |||||
Multifamily | Joint Venture | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Loans held | 802,200,000 | 746,900,000 | 802,200,000 | |||||
Multifamily Properties | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Carrying amount of loans | 37,500,000 | 37,500,000 | 37,500,000 | |||||
Multifamily Asset in New York City | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Increase (decrease) in CECL reserve | 14,800,000 | |||||||
CECL reserve | 0 | 0 | ||||||
Principal charge-offs | 14,400,000 | |||||||
Reversal of remaining CECL reserve | $ 360,000 | |||||||
Income recorded on loan | 0 | |||||||
Hospitality Asset in New York City | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
CECL reserve | 54,900,000 | 54,900,000 | ||||||
Carrying amount of loans | $ 286,300,000 | 286,300,000 | ||||||
Income recorded on loan | $ 0 | $ 0 |
Loans Receivable, Net - Sched_2
Loans Receivable, Net - Schedule Of Current Expected Credit Loss Reserve By Pool (Detail) - USD ($) $ in Thousands | 3 Months Ended | |||
Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | |
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | $ 122,221 | $ 124,679 | $ 172,100 | $ 173,549 |
Increase (decrease) in CECL reserve | 10,803 | (2,458) | (43,155) | (1,449) |
Ending balance | 133,024 | 122,221 | 128,945 | 172,100 |
U.S. Loans | ||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 26,241 | 26,885 | 44,534 | 42,995 |
Increase (decrease) in CECL reserve | 7,070 | (644) | (26,861) | 1,539 |
Ending balance | 33,311 | 26,241 | 17,673 | 44,534 |
Non-U.S. Loans | ||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 10,209 | 10,263 | 24,600 | 27,734 |
Increase (decrease) in CECL reserve | 1,135 | (54) | (15,771) | (3,134) |
Ending balance | 11,344 | 10,209 | 8,829 | 24,600 |
Unique Loans | ||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 30,897 | 32,657 | 33,305 | 33,159 |
Increase (decrease) in CECL reserve | 2,598 | (1,760) | (523) | 146 |
Ending balance | 33,495 | 30,897 | 32,782 | 33,305 |
Impaired loans | ||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 54,874 | 54,874 | 69,661 | 69,661 |
Increase (decrease) in CECL reserve | 0 | 0 | 0 | 0 |
Ending balance | $ 54,874 | $ 54,874 | $ 69,661 | $ 69,661 |
Loans Receivable, Net - Loans R
Loans Receivable, Net - Loans Receivable Based On Our Internal Risk Ratings, Separated By Year Of Origination (Detail) - USD ($) $ in Thousands | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable | $ 24,831,546 | $ 22,003,017 | ||||
CECL reserve | (133,024) | $ (122,221) | (124,679) | $ (128,945) | $ (172,100) | $ (173,549) |
Loans receivable, net | 24,698,522 | 21,878,338 | ||||
Held-to-maturity debt securities | 0 | 78,013 | ||||
U.S. Loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Year One | 2,170,923 | 8,514,292 | ||||
Year Two | 8,364,051 | 786,287 | ||||
Year Three | 761,335 | 1,623,239 | ||||
Year Four | 1,390,296 | 2,858,738 | ||||
Year Five | 3,030,794 | 958,787 | ||||
Prior | 714,748 | 399,977 | ||||
Loans receivable | 16,432,147 | 15,141,320 | ||||
Non-U.S. Loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Year One | 1,134,897 | 2,101,240 | ||||
Year Two | 2,114,414 | 98,412 | ||||
Year Three | 92,847 | 2,582,847 | ||||
Year Four | 2,345,378 | 394,949 | ||||
Year Five | 146,416 | 0 | ||||
Prior | 0 | 0 | ||||
Loans receivable | 5,833,952 | 5,177,448 | ||||
Unique Loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Year One | 1,130,039 | 0 | ||||
Year Two | 0 | 0 | ||||
Year Three | 0 | 322,787 | ||||
Year Four | 290,945 | 1,017,799 | ||||
Year Five | 859,654 | 0 | ||||
Prior | 0 | 58,854 | ||||
Loans receivable | 2,280,638 | 1,399,440 | ||||
CECL reserve | (33,495) | (30,897) | (32,657) | (32,782) | (33,305) | (33,159) |
Impaired loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Year One | 0 | 0 | ||||
Year Two | 0 | 0 | ||||
Year Three | 0 | 0 | ||||
Year Four | 0 | 284,809 | ||||
Year Five | 284,809 | 0 | ||||
Prior | 0 | 0 | ||||
Loans receivable | 284,809 | 284,809 | ||||
CECL reserve | (54,874) | $ (54,874) | (54,874) | $ (69,661) | $ (69,661) | $ (69,661) |
Total loans receivable | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Year One | 4,435,859 | 10,615,532 | ||||
Year Two | 10,478,465 | 884,699 | ||||
Year Three | 854,182 | 4,528,873 | ||||
Year Four | 4,026,619 | 4,556,295 | ||||
Year Five | 4,321,673 | 958,787 | ||||
Prior | 714,748 | 458,831 | ||||
Loans receivable | 24,831,546 | 22,003,017 | ||||
1 | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable | 836,222 | 642,776 | ||||
1 | U.S. Loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Year One | 114,778 | 125,873 | ||||
Year Two | 469,851 | 0 | ||||
Year Three | 6,700 | 196,017 | ||||
Year Four | 199,931 | 72,752 | ||||
Year Five | 0 | 248,134 | ||||
Prior | 44,962 | 0 | ||||
Loans receivable | 836,222 | 642,776 | ||||
1 | Non-U.S. Loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Year One | 0 | 0 | ||||
Year Two | 0 | 0 | ||||
Year Three | 0 | 0 | ||||
Year Four | 0 | 0 | ||||
Year Five | 0 | 0 | ||||
Prior | 0 | 0 | ||||
Loans receivable | 0 | 0 | ||||
1 | Unique Loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Year One | 0 | 0 | ||||
Year Two | 0 | 0 | ||||
Year Three | 0 | 0 | ||||
Year Four | 0 | 0 | ||||
Year Five | 0 | 0 | ||||
Prior | 0 | 0 | ||||
Loans receivable | 0 | 0 | ||||
1 | Impaired loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Year One | 0 | 0 | ||||
Year Two | 0 | 0 | ||||
Year Three | 0 | 0 | ||||
Year Four | 0 | 0 | ||||
Year Five | 0 | 0 | ||||
Prior | 0 | 0 | ||||
Loans receivable | 0 | 0 | ||||
1 | Total loans receivable | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Year One | 114,778 | 125,873 | ||||
Year Two | 469,851 | 0 | ||||
Year Three | 6,700 | 196,017 | ||||
Year Four | 199,931 | 72,752 | ||||
Year Five | 0 | 248,134 | ||||
Prior | 44,962 | 0 | ||||
Loans receivable | 836,222 | 642,776 | ||||
2 | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable | 5,856,051 | 5,200,533 | ||||
2 | U.S. Loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Year One | 0 | 876,536 | ||||
Year Two | 1,782,773 | 427,839 | ||||
Year Three | 488,540 | 221,513 | ||||
Year Four | 152,672 | 1,134,176 | ||||
Year Five | 1,384,866 | 354,775 | ||||
Prior | 0 | 82,274 | ||||
Loans receivable | 3,808,851 | 3,097,113 | ||||
2 | Non-U.S. Loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Year One | 163,027 | 698,130 | ||||
Year Two | 619,169 | 98,412 | ||||
Year Three | 92,847 | 1,306,878 | ||||
Year Four | 1,172,157 | 0 | ||||
Year Five | 0 | 0 | ||||
Prior | 0 | 0 | ||||
Loans receivable | 2,047,200 | 2,103,420 | ||||
2 | Unique Loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Year One | 0 | 0 | ||||
Year Two | 0 | 0 | ||||
Year Three | 0 | 0 | ||||
Year Four | 0 | 0 | ||||
Year Five | 0 | 0 | ||||
Prior | 0 | 0 | ||||
Loans receivable | 0 | 0 | ||||
2 | Impaired loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Year One | 0 | 0 | ||||
Year Two | 0 | 0 | ||||
Year Three | 0 | 0 | ||||
Year Four | 0 | 0 | ||||
Year Five | 0 | 0 | ||||
Prior | 0 | 0 | ||||
Loans receivable | 0 | 0 | ||||
2 | Total loans receivable | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Year One | 163,027 | 1,574,666 | ||||
Year Two | 2,401,942 | 526,251 | ||||
Year Three | 581,387 | 1,528,391 | ||||
Year Four | 1,324,829 | 1,134,176 | ||||
Year Five | 1,384,866 | 354,775 | ||||
Prior | 0 | 82,274 | ||||
Loans receivable | 5,856,051 | 5,200,533 | ||||
3 | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable | 15,773,096 | 13,604,027 | ||||
3 | U.S. Loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Year One | 2,056,145 | 7,511,883 | ||||
Year Two | 6,111,427 | 358,448 | ||||
Year Three | 266,095 | 1,109,170 | ||||
Year Four | 941,151 | 1,116,872 | ||||
Year Five | 1,110,221 | 292,520 | ||||
Prior | 519,455 | 228,264 | ||||
Loans receivable | 11,004,494 | 10,617,157 | ||||
3 | Non-U.S. Loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Year One | 971,870 | 1,403,110 | ||||
Year Two | 1,495,245 | 0 | ||||
Year Three | 0 | 932,939 | ||||
Year Four | 847,533 | 394,949 | ||||
Year Five | 146,416 | 0 | ||||
Prior | 0 | 0 | ||||
Loans receivable | 3,461,064 | 2,730,998 | ||||
3 | Unique Loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Year One | 1,130,039 | 0 | ||||
Year Two | 0 | 0 | ||||
Year Three | 0 | 0 | ||||
Year Four | 0 | 197,018 | ||||
Year Five | 177,499 | 0 | ||||
Prior | 0 | 58,854 | ||||
Loans receivable | 1,307,538 | 255,872 | ||||
3 | Impaired loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Year One | 0 | 0 | ||||
Year Two | 0 | 0 | ||||
Year Three | 0 | 0 | ||||
Year Four | 0 | 0 | ||||
Year Five | 0 | 0 | ||||
Prior | 0 | 0 | ||||
Loans receivable | 0 | 0 | ||||
3 | Total loans receivable | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Year One | 4,158,054 | 8,914,993 | ||||
Year Two | 7,606,672 | 358,448 | ||||
Year Three | 266,095 | 2,042,109 | ||||
Year Four | 1,788,684 | 1,708,839 | ||||
Year Five | 1,434,136 | 292,520 | ||||
Prior | 519,455 | 287,118 | ||||
Loans receivable | 15,773,096 | 13,604,027 | ||||
4 | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable | 2,081,368 | 2,270,872 | ||||
4 | U.S. Loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Year One | 0 | 0 | ||||
Year Two | 0 | 0 | ||||
Year Three | 0 | 96,539 | ||||
Year Four | 96,542 | 534,938 | ||||
Year Five | 535,707 | 63,358 | ||||
Prior | 150,331 | 89,439 | ||||
Loans receivable | 782,580 | 784,274 | ||||
4 | Non-U.S. Loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Year One | 0 | 0 | ||||
Year Two | 0 | 0 | ||||
Year Three | 0 | 343,030 | ||||
Year Four | 325,688 | 0 | ||||
Year Five | 0 | 0 | ||||
Prior | 0 | 0 | ||||
Loans receivable | 325,688 | 343,030 | ||||
4 | Unique Loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Year One | 0 | 0 | ||||
Year Two | 0 | 0 | ||||
Year Three | 0 | 322,787 | ||||
Year Four | 290,945 | 820,781 | ||||
Year Five | 682,155 | 0 | ||||
Prior | 0 | 0 | ||||
Loans receivable | 973,100 | 1,143,568 | ||||
4 | Impaired loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Year One | 0 | 0 | ||||
Year Two | 0 | 0 | ||||
Year Three | 0 | 0 | ||||
Year Four | 0 | 0 | ||||
Year Five | 0 | 0 | ||||
Prior | 0 | 0 | ||||
Loans receivable | 0 | 0 | ||||
4 | Total loans receivable | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Year One | 0 | 0 | ||||
Year Two | 0 | 0 | ||||
Year Three | 0 | 762,356 | ||||
Year Four | 713,175 | 1,355,719 | ||||
Year Five | 1,217,862 | 63,358 | ||||
Prior | 150,331 | 89,439 | ||||
Loans receivable | 2,081,368 | 2,270,872 | ||||
5 | U.S. Loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Year One | 0 | 0 | ||||
Year Two | 0 | 0 | ||||
Year Three | 0 | 0 | ||||
Year Four | 0 | 0 | ||||
Year Five | 0 | 0 | ||||
Prior | 0 | 0 | ||||
Loans receivable | 0 | 0 | ||||
5 | Non-U.S. Loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Year One | 0 | 0 | ||||
Year Two | 0 | 0 | ||||
Year Three | 0 | 0 | ||||
Year Four | 0 | 0 | ||||
Year Five | 0 | 0 | ||||
Prior | 0 | 0 | ||||
Loans receivable | 0 | 0 | ||||
5 | Unique Loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Year One | 0 | 0 | ||||
Year Two | 0 | 0 | ||||
Year Three | 0 | 0 | ||||
Year Four | 0 | 0 | ||||
Year Five | 0 | 0 | ||||
Prior | 0 | 0 | ||||
Loans receivable | 0 | 0 | ||||
5 | Impaired loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Year One | 0 | 0 | ||||
Year Two | 0 | 0 | ||||
Year Three | 0 | 0 | ||||
Year Four | 0 | 284,809 | ||||
Year Five | 284,809 | 0 | ||||
Prior | 0 | 0 | ||||
Loans receivable | 284,809 | 284,809 | ||||
5 | Total loans receivable | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Year One | 0 | 0 | ||||
Year Two | 0 | 0 | ||||
Year Three | 0 | 0 | ||||
Year Four | 0 | 284,809 | ||||
Year Five | 284,809 | 0 | ||||
Prior | 0 | 0 | ||||
Loans receivable | $ 284,809 | $ 284,809 |
Other Assets and Liabilities -
Other Assets and Liabilities - Summary of Components of Other Assets (Detail) - USD ($) $ in Thousands | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Schedule Of Other Assets [Line Items] | ||||||
Loan portfolio payments held by servicer | $ 252,401 | $ 77,624 | ||||
Accrued interest receivable | 123,517 | 86,101 | ||||
Derivative assets | 83,982 | 30,531 | ||||
Accounts receivable and other assets | 503 | 572 | ||||
Prepaid expenses | 742 | 956 | ||||
Debt securities held-to-maturity | 0 | 78,083 | ||||
CECL reserve | 0 | $ 0 | (70) | $ (122) | $ (889) | $ (1,723) |
Debt securities held-to-maturity, net | 0 | 78,013 | ||||
Total | $ 461,145 | 273,797 | ||||
2018 Single Asset Securitization | ||||||
Schedule Of Other Assets [Line Items] | ||||||
Total loan amount, securitized | $ 379,300 |
Other Assets and Liabilities _2
Other Assets and Liabilities - Summary Of Current Expected Credit Loss Reserve By Pool (Detail) - USD ($) $ in Thousands | 3 Months Ended | |||
Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | |
Debt Securities, Held-to-Maturity, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | $ 0 | $ 70 | $ 889 | $ 1,723 |
Decrease in CECL reserve | 0 | (70) | (767) | (834) |
Ending balance | $ 0 | $ 0 | $ 122 | $ 889 |
Other Assets and Liabilities _3
Other Assets and Liabilities - Additional Information (Detail) - Unfunded Loan Commitments $ in Thousands | Jun. 30, 2022 USD ($) loan | Dec. 31, 2021 USD ($) |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Unfunded loan commitments | $ | $ 4,623,298 | $ 4,180,128 |
Number of loans receivable | loan | 125 |
Other Assets and Liabilities _4
Other Assets and Liabilities - Summary of Components of Other Liabilities (Detail) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Deferred Costs, Capitalized, Prepaid, Other Assets and Other Liabilities Disclosure [Abstract] | ||
Accrued dividends payable | $ 105,583 | $ 104,271 |
Accrued interest payable | 55,334 | 29,851 |
Accrued management and incentive fees payable | 27,065 | 28,373 |
Secured debt repayments pending servicer remittance | 22,117 | 47,664 |
Current expected credit loss reserve for unfunded loan commitments | 8,434 | 6,263 |
Accounts payable and other liabilities | 7,899 | 9,046 |
Derivative liabilities | 2,589 | 5,890 |
Total | $ 229,021 | $ 231,358 |
Other Assets and Liabilities _5
Other Assets and Liabilities - Summary of Unfunded Loan Commitment (Detail) - USD ($) $ in Thousands | 3 Months Ended | |||
Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | |
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | $ 122,221 | $ 124,679 | $ 172,100 | $ 173,549 |
Increase (decrease) in CECL reserve | 10,803 | (2,458) | (43,155) | (1,449) |
Ending balance | 133,024 | 122,221 | 128,945 | 172,100 |
U.S. Loans | ||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 26,241 | 26,885 | 44,534 | 42,995 |
Increase (decrease) in CECL reserve | 7,070 | (644) | (26,861) | 1,539 |
Ending balance | 33,311 | 26,241 | 17,673 | 44,534 |
Non-U.S. Loans | ||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 10,209 | 10,263 | 24,600 | 27,734 |
Increase (decrease) in CECL reserve | 1,135 | (54) | (15,771) | (3,134) |
Ending balance | 11,344 | 10,209 | 8,829 | 24,600 |
Unfunded Loan Commitment | ||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 6,254 | 6,263 | 11,021 | 10,031 |
Increase (decrease) in CECL reserve | 2,180 | (9) | (6,984) | 990 |
Ending balance | 8,434 | 6,254 | 4,037 | 11,021 |
Unfunded Loan Commitment | U.S. Loans | ||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 4,281 | 4,072 | 7,169 | 6,953 |
Increase (decrease) in CECL reserve | 2,042 | 209 | (4,315) | 216 |
Ending balance | 6,323 | 4,281 | 2,854 | 7,169 |
Unfunded Loan Commitment | Non-U.S. Loans | ||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 1,973 | 2,191 | 3,772 | 2,994 |
Increase (decrease) in CECL reserve | 138 | (218) | (2,632) | 778 |
Ending balance | 2,111 | 1,973 | 1,140 | 3,772 |
Unique Loans | ||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 30,897 | 32,657 | 33,305 | 33,159 |
Increase (decrease) in CECL reserve | 2,598 | (1,760) | (523) | 146 |
Ending balance | 33,495 | 30,897 | 32,782 | 33,305 |
Unique Loans | Unfunded Loan Commitment | ||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 0 | 0 | 80 | 84 |
Increase (decrease) in CECL reserve | 0 | 0 | (37) | (4) |
Ending balance | 0 | 0 | 43 | 80 |
Impaired loans | ||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 54,874 | 54,874 | 69,661 | 69,661 |
Increase (decrease) in CECL reserve | 0 | 0 | 0 | 0 |
Ending balance | 54,874 | 54,874 | 69,661 | 69,661 |
Impaired loans | Unfunded Loan Commitment | ||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 0 | 0 | 0 | 0 |
Increase (decrease) in CECL reserve | 0 | 0 | 0 | 0 |
Ending balance | $ 0 | $ 0 | $ 0 | $ 0 |
Secured Debt, Net - Additional
Secured Debt, Net - Additional Information (Detail) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) credit_facility | Jun. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) | |
Debt Instrument [Line Items] | |||||
Interest expense | $ 136,619,000 | $ 82,352,000 | $ 237,333,000 | $ 160,723,000 | |
Covenants, minimum tangible net worth | $ 3,500,000,000 | $ 3,500,000,000 | |||
Covenants, percentage of recourse indebtedness | 0.05 | 0.05 | |||
Minimum | |||||
Debt Instrument [Line Items] | |||||
Covenants, EBITDA to fixed charges, in percent | 1.4 | ||||
Covenants, percentage of tangible assets on cash proceeds from equity issuances | 0.75 | ||||
Covenants, minimum cash liquidity amount | $ 10,000,000 | $ 10,000,000 | |||
Maximum | |||||
Debt Instrument [Line Items] | |||||
Covenants, percentage of tangible assets on cash proceeds from equity issuances | 0.85 | ||||
Covenants, indebtedness to total assets, in percent | 0.8333 | 0.8333 | |||
Secured credit facilities | Line of Credit | |||||
Debt Instrument [Line Items] | |||||
New borrowings | $ 3,060,267,000 | $ 7,763,563,000 | |||
Collateral | $ 19,485,553,000 | $ 19,485,553,000 | 17,042,381,000 | ||
Number of new secured credit facilities | credit_facility | 1 | ||||
Maximum borrowing capacity | 1,000,000,000 | $ 1,000,000,000 | |||
Number of existing secured credit facilities with increased size | credit_facility | 6 | ||||
Additional credit capacity | $ 1,400,000,000 | ||||
Remaining borrowing capacity | 1,000,000,000 | 1,000,000,000 | |||
Borrowings | 13,932,436,000 | 13,932,436,000 | 12,299,580,000 | ||
Secured credit facilities | Line of Credit | New Borrowings | |||||
Debt Instrument [Line Items] | |||||
New borrowings | 3,700,000,000 | ||||
Collateral | 4,700,000,000 | 4,700,000,000 | |||
Acquisition facility | Line of Credit | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | 250,000,000 | 250,000,000 | |||
Borrowings | 0 | 0 | $ 0 | ||
Interest expense | 303,000 | 221,000 | 608,000 | 618,000 | |
Amortization of deferred fees and expenses | $ 81,000 | $ 96,000 | $ 168,000 | $ 178,000 |
Secured Debt, Net - Schedule of
Secured Debt, Net - Schedule of Secured Debt Agreements (Detail) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Deferred financing costs | $ (6,300) | |
Net book value | 17,565,521 | |
Line of Credit | ||
Debt Instrument [Line Items] | ||
Total secured debt | 13,932,436 | $ 12,299,580 |
Deferred financing costs | (26,487) | (19,538) |
Net book value | 13,905,949 | 12,280,042 |
Secured credit facilities | Line of Credit | ||
Debt Instrument [Line Items] | ||
Total secured debt | 13,932,436 | 12,299,580 |
Acquisition facility | Line of Credit | ||
Debt Instrument [Line Items] | ||
Total secured debt | $ 0 | $ 0 |
Secured Debt, Net - Schedule _2
Secured Debt, Net - Schedule of Secured Credit Facilities (Detail) - Secured credit facilities - Line of Credit $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 USD ($) lender | Dec. 31, 2021 USD ($) | |
Schedule Of Secured Credit Facilities [Line Items] | ||
Lenders | lender | 14 | |
Borrowings | $ | $ 13,932,436 | $ 12,299,580 |
Loan Count | lender | 177 | |
Collateral | $ | $ 19,485,553 | $ 17,042,381 |
Recourse Limitation Wtd. Avg. (percentage) | 34% | |
Others | ||
Schedule Of Secured Credit Facilities [Line Items] | ||
Lenders | lender | 4 | |
Borrowings | $ | $ 1,653,232 | |
Loan Count | lender | 8 | |
Collateral | $ | $ 2,094,593 | |
Recourse Limitation Wtd. Avg. (percentage) | 25% | |
Recourse Limitation Range (percentage) | 25% | |
Minimum | ||
Schedule Of Secured Credit Facilities [Line Items] | ||
Recourse Limitation Range (percentage) | 25% | |
Maximum | ||
Schedule Of Secured Credit Facilities [Line Items] | ||
Recourse Limitation Range (percentage) | 100% | |
USD | ||
Schedule Of Secured Credit Facilities [Line Items] | ||
Lenders | lender | 14 | |
Borrowings | $ | $ 8,101,964 | |
Loan Count | lender | 142 | |
Collateral | $ | $ 11,873,368 | |
Recourse Limitation Wtd. Avg. (percentage) | 34% | |
USD | Minimum | ||
Schedule Of Secured Credit Facilities [Line Items] | ||
Recourse Limitation Range (percentage) | 25% | |
USD | Maximum | ||
Schedule Of Secured Credit Facilities [Line Items] | ||
Recourse Limitation Range (percentage) | 100% | |
EUR | ||
Schedule Of Secured Credit Facilities [Line Items] | ||
Lenders | lender | 6 | |
Borrowings | $ | $ 2,119,463 | |
Loan Count | lender | 10 | |
Collateral | $ | $ 2,818,786 | |
Recourse Limitation Wtd. Avg. (percentage) | 45% | |
EUR | Minimum | ||
Schedule Of Secured Credit Facilities [Line Items] | ||
Recourse Limitation Range (percentage) | 25% | |
EUR | Maximum | ||
Schedule Of Secured Credit Facilities [Line Items] | ||
Recourse Limitation Range (percentage) | 100% | |
GBP | ||
Schedule Of Secured Credit Facilities [Line Items] | ||
Lenders | lender | 6 | |
Borrowings | $ | $ 2,057,777 | |
Loan Count | lender | 18 | |
Collateral | $ | $ 2,698,806 | |
Recourse Limitation Wtd. Avg. (percentage) | 26% | |
GBP | Minimum | ||
Schedule Of Secured Credit Facilities [Line Items] | ||
Recourse Limitation Range (percentage) | 25% | |
GBP | Maximum | ||
Schedule Of Secured Credit Facilities [Line Items] | ||
Recourse Limitation Range (percentage) | 50% |
Secured Debt, Net - Schedule _3
Secured Debt, Net - Schedule of All in Cost of Secured Credit Facilities (Details) - Secured credit facilities - Line of Credit - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Schedule Of All In Cost Of Secured Credit Facilities [Line Items] | ||
New Financings | $ 3,060,267 | $ 7,763,563 |
Total Borrowings | $ 13,932,436 | $ 12,299,580 |
Wtd. Avg. All-in Cost (percentage) | 1.79% | 1.72% |
Collateral | $ 19,485,553 | $ 17,042,381 |
Wtd. Avg. All-in Yield (percentage) | 3.58% | 3.49% |
Net Interest Margin (percentage) | 1.79% | 1.77% |
+ 1.50% or less | ||
Schedule Of All In Cost Of Secured Credit Facilities [Line Items] | ||
New Financings | $ 1,329,670 | $ 5,306,925 |
Total Borrowings | $ 8,110,825 | $ 7,746,026 |
Wtd. Avg. All-in Cost (percentage) | 1.52% | 1.52% |
Collateral | $ 10,957,198 | $ 10,193,801 |
Wtd. Avg. All-in Yield (percentage) | 3.19% | 3.18% |
Net Interest Margin (percentage) | 1.67% | 1.66% |
+ 1.51% to + 1.75% | ||
Schedule Of All In Cost Of Secured Credit Facilities [Line Items] | ||
New Financings | $ 322,306 | $ 1,477,177 |
Total Borrowings | $ 2,630,077 | $ 2,710,587 |
Wtd. Avg. All-in Cost (percentage) | 1.88% | 1.88% |
Collateral | $ 3,986,106 | $ 3,977,492 |
Wtd. Avg. All-in Yield (percentage) | 3.58% | 3.55% |
Net Interest Margin (percentage) | 1.70% | 1.67% |
+ 1.76% to + 2.00% | ||
Schedule Of All In Cost Of Secured Credit Facilities [Line Items] | ||
New Financings | $ 480,738 | $ 668,470 |
Total Borrowings | $ 1,404,894 | $ 998,781 |
Wtd. Avg. All-in Cost (percentage) | 2.16% | 2.13% |
Collateral | $ 2,077,065 | $ 1,458,074 |
Wtd. Avg. All-in Yield (percentage) | 4.15% | 4.28% |
Net Interest Margin (percentage) | 1.99% | 2.15% |
+ 2.01% or more | ||
Schedule Of All In Cost Of Secured Credit Facilities [Line Items] | ||
New Financings | $ 927,553 | $ 310,991 |
Total Borrowings | $ 1,786,640 | $ 844,186 |
Wtd. Avg. All-in Cost (percentage) | 2.57% | 2.49% |
Collateral | $ 2,465,184 | $ 1,413,014 |
Wtd. Avg. All-in Yield (percentage) | 4.84% | 4.75% |
Net Interest Margin (percentage) | 2.27% | 2.26% |
Securitized Debt Obligations,_3
Securitized Debt Obligations, Net - Schedule of Information on Securitized Debt Obligations (Detail) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) loan | Jun. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) loan | |
Debt Instrument [Line Items] | |||||
Credit spread adjustment (percentage) | 0.11% | 0.11% | 0.11% | ||
Interest expense on securitized debt obligations | $ 15,500 | $ 12,400 | $ 26,500 | $ 24,500 | |
Financing provided | |||||
Debt Instrument [Line Items] | |||||
Count | loan | 3 | 3 | |||
Principal Balance | 2,855,625 | $ 2,855,625 | $ 2,855,625 | ||
Book Value | 2,841,901 | $ 2,841,901 | $ 2,838,062 | ||
Financing provided | 2021 FL4 Collateralized Loan Obligation | |||||
Debt Instrument [Line Items] | |||||
Count | loan | 1 | 1 | |||
Principal Balance | 803,750 | $ 803,750 | $ 803,750 | ||
Book Value | 798,466 | $ 798,466 | $ 797,373 | ||
Financing provided | 2020 FL3 Collateralized Loan Obligation | |||||
Debt Instrument [Line Items] | |||||
Count | loan | 1 | 1 | |||
Principal Balance | 808,750 | $ 808,750 | $ 808,750 | ||
Book Value | 805,362 | $ 805,362 | $ 804,096 | ||
Financing provided | 2020 FL2 Collateralized Loan Obligation | |||||
Debt Instrument [Line Items] | |||||
Count | loan | 1 | 1 | |||
Principal Balance | 1,243,125 | $ 1,243,125 | $ 1,243,125 | ||
Book Value | 1,238,073 | $ 1,238,073 | $ 1,236,593 | ||
Collateral assets | |||||
Debt Instrument [Line Items] | |||||
Count | loan | 66 | 73 | |||
Principal Balance | 3,500,000 | $ 3,500,000 | $ 3,500,000 | ||
Book Value | 3,500,000 | $ 3,500,000 | $ 3,500,000 | ||
Collateral assets | 2021 FL4 Collateralized Loan Obligation | |||||
Debt Instrument [Line Items] | |||||
Count | loan | 32 | 34 | |||
Principal Balance | 1,000,000 | $ 1,000,000 | $ 1,000,000 | ||
Book Value | 1,000,000 | $ 1,000,000 | $ 1,000,000 | ||
Collateral assets | 2020 FL3 Collateralized Loan Obligation | |||||
Debt Instrument [Line Items] | |||||
Count | loan | 16 | 18 | |||
Principal Balance | 1,000,000 | $ 1,000,000 | $ 1,000,000 | ||
Book Value | 1,000,000 | $ 1,000,000 | $ 1,000,000 | ||
Collateral assets | 2020 FL2 Collateralized Loan Obligation | |||||
Debt Instrument [Line Items] | |||||
Count | loan | 18 | 21 | |||
Principal Balance | 1,500,000 | $ 1,500,000 | $ 1,500,000 | ||
Book Value | $ 1,500,000 | $ 1,500,000 | $ 1,500,000 | ||
LIBOR | |||||
Debt Instrument [Line Items] | |||||
One-month USD LIBOR | 1.79% | 1.79% | 0.10% | ||
LIBOR | Financing provided | |||||
Debt Instrument [Line Items] | |||||
Wtd. Avg. Yield/Cost | 1.62% | 1.69% | |||
LIBOR | Financing provided | 2021 FL4 Collateralized Loan Obligation | |||||
Debt Instrument [Line Items] | |||||
Wtd. Avg. Yield/Cost | 1.57% | 1.66% | |||
LIBOR | Financing provided | 2020 FL3 Collateralized Loan Obligation | |||||
Debt Instrument [Line Items] | |||||
Wtd. Avg. Yield/Cost | 2.03% | 2.10% | |||
LIBOR | Financing provided | 2020 FL2 Collateralized Loan Obligation | |||||
Debt Instrument [Line Items] | |||||
Wtd. Avg. Yield/Cost | 1.39% | 1.45% | |||
LIBOR | Collateral assets | |||||
Debt Instrument [Line Items] | |||||
Wtd. Avg. Yield/Cost | 3.34% | 3.20% | |||
LIBOR | Collateral assets | 2021 FL4 Collateralized Loan Obligation | |||||
Debt Instrument [Line Items] | |||||
Wtd. Avg. Yield/Cost | 3.51% | 3.42% | |||
LIBOR | Collateral assets | 2020 FL3 Collateralized Loan Obligation | |||||
Debt Instrument [Line Items] | |||||
Wtd. Avg. Yield/Cost | 3.21% | 3.06% | |||
LIBOR | Collateral assets | 2020 FL2 Collateralized Loan Obligation | |||||
Debt Instrument [Line Items] | |||||
Wtd. Avg. Yield/Cost | 3.31% | 3.15% | |||
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | |||||
Debt Instrument [Line Items] | |||||
30 day average compounded SOFR reference rate | 1.69% | 1.69% | 0.05% |
Asset-Specific Debt, Net (Detai
Asset-Specific Debt, Net (Detail) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 USD ($) SecurityLoan | Dec. 31, 2021 USD ($) SecurityLoan | |
Financing provided | ||
Participating Mortgage Loans [Line Items] | ||
Count | SecurityLoan | 4 | 4 |
Financing provided, Principal Balance | $ 870,684 | $ 400,699 |
Financing provided, Book Value | $ 860,007 | $ 393,824 |
Financing provided | LIBOR | ||
Participating Mortgage Loans [Line Items] | ||
Weighted Average Yield/Cost Rate | 3.02% | 2.78% |
Collateral assets | ||
Participating Mortgage Loans [Line Items] | ||
Count | SecurityLoan | 4 | 4 |
Collateral assets, Principal Balance | $ 1,022,146 | $ 446,276 |
Collateral assets, Book Value | $ 1,003,394 | $ 435,727 |
Collateral assets | LIBOR | ||
Participating Mortgage Loans [Line Items] | ||
Weighted Average Yield/Cost Rate | 4.30% | 4.04% |
Loan Participations Sold, Net_2
Loan Participations Sold, Net (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 USD ($) SecurityLoan | Dec. 31, 2021 USD ($) | |
Participating Mortgage Loans [Line Items] | ||
Principal Balance | $ 226,511 | $ 0 |
Book Value | $ 225,884 | $ 0 |
Total Loan | ||
Participating Mortgage Loans [Line Items] | ||
Count | SecurityLoan | 1 | |
Principal Balance | $ 283,139 | |
Book Value | $ 280,560 | |
Total Loan | LIBOR | ||
Participating Mortgage Loans [Line Items] | ||
Weighted Average Yield/Cost Rate | 4.86% | |
Senior Participation | ||
Participating Mortgage Loans [Line Items] | ||
Count | SecurityLoan | 1 | |
Principal Balance | $ 226,511 | |
Book Value | $ 225,884 | |
Senior Participation | LIBOR | ||
Participating Mortgage Loans [Line Items] | ||
Weighted Average Yield/Cost Rate | 3.22% |
Term Loans, Net - Additional In
Term Loans, Net - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2022 USD ($) | |
Debt Instrument [Line Items] | |
Secured term loan percentage of partially amortizing | 1% |
B-4 Term Loan | |
Debt Instrument [Line Items] | |
Face Value | $ 500,000,000 |
Interest Rate | 0.50% |
Discount upon issuance of secured term loan | $ 7,500,000 |
Secured term loan transaction expenses | $ 5,900,000 |
B-4 Term Loan | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | |
Debt Instrument [Line Items] | |
Interest Rate | 3.50% |
B-3 Term Loan | |
Debt Instrument [Line Items] | |
Face Value | $ 417,280,000 |
Interest Rate | 0.50% |
Secured term loan percentage of partially amortizing | 1% |
Discount upon issuance of secured term loan | $ 9,600,000 |
Secured term loan transaction expenses | $ 5,400,000 |
Total debt to total assets ratio | 0.8333 |
B-1 Term Loan | |
Debt Instrument [Line Items] | |
Face Value | $ 925,121,000 |
Secured term loan percentage of partially amortizing | 1% |
Discount upon issuance of secured term loan | $ 3,100,000 |
Secured term loan transaction expenses | $ 12,600,000 |
Total debt to total assets ratio | 0.8333 |
Term Loans, Net - Schedule of D
Term Loans, Net - Schedule of Debt (Detail) | 6 Months Ended |
Jun. 30, 2022 USD ($) | |
B-1 Term Loan | |
Debt Instrument [Line Items] | |
Face Value | $ 925,121,000 |
All-in Cost | 2.53% |
B-1 Term Loan | LIBOR | |
Debt Instrument [Line Items] | |
Interest Rate | 2.25% |
B-3 Term Loan | |
Debt Instrument [Line Items] | |
Face Value | $ 417,280,000 |
Interest Rate | 0.50% |
All-in Cost | 3.42% |
B-3 Term Loan | LIBOR | |
Debt Instrument [Line Items] | |
Interest Rate | 2.75% |
B-4 Term Loan | |
Debt Instrument [Line Items] | |
Face Value | $ 500,000,000 |
Interest Rate | 0.50% |
All-in Cost | 3.98% |
B-4 Term Loan | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | |
Debt Instrument [Line Items] | |
Interest Rate | 3.50% |
Term Loans, Net - Schedule of N
Term Loans, Net - Schedule of Net Book Value of Our Secured Term Loans on Our Consolidated Balance Sheets (Detail) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Deferred financing costs | $ (6,300) | |
Secured term loans, net | ||
Debt Instrument [Line Items] | ||
Face Value | 1,842,401 | $ 1,349,271 |
Unamortized discount | (15,494) | (9,209) |
Deferred financing costs | (16,965) | (12,656) |
Net book value | $ 1,809,942 | $ 1,327,406 |
Senior Secured Notes, Net - Sch
Senior Secured Notes, Net - Schedule of Senior Secured Notes (Details) - Senior Secured Notes - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Face Value | $ 400,000,000 | $ 400,000,000 |
Senior Secured Notes Due 2027 | ||
Debt Instrument [Line Items] | ||
Face Value | $ 400,000,000 | |
Interest Rate | 3.75% | |
All-in Cost | 4.04% |
Senior Secured Notes, Net - Add
Senior Secured Notes, Net - Additional Information (Details) $ in Thousands | Jun. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) |
Debt Instrument [Line Items] | ||
Transaction expenses | $ 6,300 | |
Senior Secured Notes | Senior Secured Notes Due 2027 | ||
Debt Instrument [Line Items] | ||
Transaction expenses | $ 5,438 | $ 5,990 |
Total debt to total assets ratio | 0.8333 | |
Total unencumbered assets to total unsecured debt ratio | 1.20 |
Senior Secured Notes, Net - S_2
Senior Secured Notes, Net - Schedule of Net Book Value (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Deferred financing costs | $ (6,300) | |
Net book value | 17,565,521 | |
Senior Secured Notes | ||
Debt Instrument [Line Items] | ||
Net book value | 400,000 | |
Senior Secured Notes | Senior Secured Notes Due 2027 | ||
Debt Instrument [Line Items] | ||
Face value | 400,000 | $ 400,000 |
Deferred financing costs | (5,438) | (5,990) |
Net book value | $ 394,562 | $ 394,010 |
Convertible Notes, Net - Additi
Convertible Notes, Net - Additional Information (Detail) - USD ($) | 1 Months Ended | 6 Months Ended | ||||
May 05, 2022 | Mar. 31, 2022 | Jun. 30, 2022 | Jun. 30, 2021 | Jan. 01, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | ||||||
Repayments of convertible notes | $ 402,500,000 | $ 0 | ||||
Share price (in dollars per share) | $ 27.67 | |||||
Decrease to additional paid-in capital | $ (5,440,364,000) | $ (5,373,029,000) | ||||
Accumulated deficit | (811,554,000) | (794,832,000) | ||||
Accrued interest payable | 55,334,000 | 29,851,000 | ||||
Cumulative Effect, Period of Adoption, Adjustment | Accounting Standards Update 2020-06 | ||||||
Debt Instrument [Line Items] | ||||||
Decrease to additional paid-in capital | $ 2,400,000 | |||||
Accumulated deficit | 2,000,000 | |||||
Increase to convertible notes, net | $ 476,000 | |||||
5.50% Convertible Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Face Value | $ 300,000,000 | |||||
Interest Rate | 5.50% | |||||
4.38% Convertible Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Repayments of convertible notes | $ 337,900,000 | $ 64,700,000 | ||||
Redemption price percentage | 100.25% | |||||
Convertible Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Accrued interest payable | $ 7,300,000 | $ 6,000,000 |
Convertible Notes, Net - Summar
Convertible Notes, Net - Summary of Outstanding Convertible Senior Notes (Detail) | 6 Months Ended |
Jun. 30, 2022 USD ($) $ / shares | |
4.75% Convertible Senior Notes | |
Debt Instrument [Line Items] | |
Face Value | $ 220,000,000 |
Interest Rate | 4.75% |
All-in Cost | 5.33% |
Conversion Rate | 27.6052 |
4.75% Convertible Senior Notes | Class A Common Stock | |
Debt Instrument [Line Items] | |
Debt instrument conversion price (in dollars per share) | $ / shares | $ 36.23 |
Debt conversion, principal amount | $ 1,000 |
5.50% Convertible Senior Notes | |
Debt Instrument [Line Items] | |
Face Value | $ 300,000,000 |
Interest Rate | 5.50% |
All-in Cost | 5.94% |
Conversion Rate | 27.5702 |
5.50% Convertible Senior Notes | Class A Common Stock | |
Debt Instrument [Line Items] | |
Debt instrument conversion price (in dollars per share) | $ / shares | $ 36.27 |
Debt conversion, principal amount | $ 1,000 |
4.38% Convertible Senior Notes | Class A Common Stock | |
Debt Instrument [Line Items] | |
Debt conversion, principal amount | $ 1,000 |
Convertible Notes, Net - Summ_2
Convertible Notes, Net - Summary of Details of Net Book Value of Convertible Note (Detail) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Deferred financing costs | $ (6,300) | |
Convertible notes, net | ||
Debt Instrument [Line Items] | ||
Face Value | 520,000 | $ 622,500 |
Unamortized discount | (6,950) | (2,472) |
Deferred financing costs | (56) | (152) |
Net book value | $ 512,994 | $ 619,876 |
Convertible Notes, Net - Summ_3
Convertible Notes, Net - Summary of Details about Interest Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Debt Instrument [Line Items] | ||||
Discount and issuance cost amortization | $ 22,059 | $ 19,277 | ||
Convertible notes, net | ||||
Debt Instrument [Line Items] | ||||
Cash coupon | $ 8,132 | $ 7,015 | 15,384 | 14,030 |
Discount and issuance cost amortization | 790 | 869 | 1,578 | 1,722 |
Total interest expense | $ 8,922 | $ 7,884 | $ 16,962 | $ 15,752 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Summary of Outstanding Foreign Exchange Derivatives Designated as Net Investment Hedges of Foreign Currency Risk (Detail) - Designated Hedges - Net Investment Hedges € in Thousands, £ in Thousands, kr in Thousands, kr in Thousands, SFr in Thousands, $ in Thousands, $ in Thousands | Jun. 30, 2022 SEK (kr) DerivativeInstrument | Jun. 30, 2022 EUR (€) DerivativeInstrument | Jun. 30, 2022 GBP (£) DerivativeInstrument | Jun. 30, 2022 AUD ($) DerivativeInstrument | Jun. 30, 2022 DKK (kr) DerivativeInstrument | Jun. 30, 2022 CAD ($) DerivativeInstrument | Jun. 30, 2022 CHF (SFr) DerivativeInstrument | Dec. 31, 2021 SEK (kr) DerivativeInstrument | Dec. 31, 2021 EUR (€) DerivativeInstrument | Dec. 31, 2021 GBP (£) DerivativeInstrument | Dec. 31, 2021 AUD ($) DerivativeInstrument | Dec. 31, 2021 CAD ($) DerivativeInstrument | Dec. 31, 2021 CHF (SFr) DerivativeInstrument |
Buy USD / Sell SEK Forward | |||||||||||||
Derivative [Line Items] | |||||||||||||
Number of Instruments | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 |
Notional Amount | kr | kr 995,700 | kr 999,500 | |||||||||||
Buy USD / Sell EUR Forward | |||||||||||||
Derivative [Line Items] | |||||||||||||
Number of Instruments | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 7 | 7 | 7 | 7 | 7 | 7 |
Notional Amount | € | € 707,092 | € 731,182 | |||||||||||
Buy USD / Sell GBP Forward | |||||||||||||
Derivative [Line Items] | |||||||||||||
Number of Instruments | 3 | 3 | 3 | 3 | 3 | 3 | 3 | 2 | 2 | 2 | 2 | 2 | 2 |
Notional Amount | £ | £ 670,013 | £ 489,204 | |||||||||||
Buy USD / Sell AUD Forward | |||||||||||||
Derivative [Line Items] | |||||||||||||
Number of Instruments | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 3 | 3 | 3 | 3 | 3 | 3 |
Notional Amount | $ | $ 514,500 | $ 188,600 | |||||||||||
Buy USD / Sell DKK Forward | |||||||||||||
Derivative [Line Items] | |||||||||||||
Number of Instruments | 2 | 2 | 2 | 2 | 2 | 2 | 2 | ||||||
Notional Amount | kr | kr 167,200 | ||||||||||||
Buy USD / Sell CAD Forward | |||||||||||||
Derivative [Line Items] | |||||||||||||
Number of Instruments | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 |
Notional Amount | $ | $ 18,300 | $ 22,100 | |||||||||||
Buy USD / Sell CHF Forward | |||||||||||||
Derivative [Line Items] | |||||||||||||
Number of Instruments | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 |
Notional Amount | SFr | SFr 5,200 | SFr 5,200 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Summary of Non-designated Hedges (Detail) - Non-designated Hedges € in Thousands, £ in Thousands, SFr in Thousands | Jun. 30, 2022 EUR (€) DerivativeInstrument | Jun. 30, 2022 GBP (£) DerivativeInstrument | Dec. 31, 2021 EUR (€) DerivativeInstrument | Dec. 31, 2021 GBP (£) DerivativeInstrument | Dec. 31, 2021 CHF (SFr) DerivativeInstrument |
Buy EUR / Sell USD Forward | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Number of Instruments | 1 | 1 | 2 | 2 | 2 |
Notional Amount | € | € 18,000 | € 165,560 | |||
Buy GBP / Sell USD Forward | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Number of Instruments | 1 | 1 | 3 | 3 | 3 |
Notional Amount | £ | £ 7,026 | £ 170,600 | |||
Buy USD / Sell EUR Forward | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Number of Instruments | 2 | 2 | 3 | 3 | 3 |
Notional Amount | € | € 18,000 | € 165,560 | |||
Buy USD / Sell GBP Forward | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Number of Instruments | 1 | 1 | 3 | 3 | 3 |
Notional Amount | £ | £ 7,026 | £ 170,600 | |||
Buy GBP / Sell EUR | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Number of Instruments | 1 | 1 | 1 | 1 | 1 |
Notional Amount | £ 8,410 | € 8,410 | |||
Buy EUR / Sell GBP | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Number of Instruments | 1 | 1 | |||
Notional Amount | € | € 8,410 | ||||
Buy CHF / Sell USD Forward | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Number of Instruments | 1 | 1 | 1 | ||
Notional Amount | SFr | SFr 20,300 | ||||
Buy USD / Sell CHF Forward | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Number of Instruments | 1 | 1 | 1 | ||
Notional Amount | SFr | SFr 20,300 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Schedule of Derivative Instruments in Statement of Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Increase (Decrease) to Net Interest Income Recognized from Foreign Exchange Contracts | $ 713 | $ (635) | ||
Foreign Exchange Forward | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Increase (Decrease) to Net Interest Income Recognized from Foreign Exchange Contracts | $ 3,286 | $ 3,801 | 5,039 | (3,753) |
Designated Hedges | Foreign Exchange Forward | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Increase (Decrease) to Net Interest Income Recognized from Foreign Exchange Contracts | 3,238 | 1,703 | 4,982 | 3,752 |
Non-Designated Hedges | Foreign Exchange Forward | Interest Income | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Increase (Decrease) to Net Interest Income Recognized from Foreign Exchange Contracts | (7) | (99) | (8) | (374) |
Non-Designated Hedges | Foreign Exchange Forward | Interest Expense | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Increase (Decrease) to Net Interest Income Recognized from Foreign Exchange Contracts | $ 55 | $ 2,197 | $ 65 | $ (7,131) |
Derivative Financial Instrume_6
Derivative Financial Instruments - Summary of Fair Value of Derivative Financial Instruments (Detail) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative assets | $ 83,982 | $ 30,531 |
Derivative liabilities | 2,589 | 5,890 |
Designated Hedges | Foreign Exchange Contracts | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative assets | 83,143 | 23,423 |
Derivative liabilities | 1,807 | 1,383 |
Non-designated Hedges | Foreign Exchange Contracts | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative assets | 839 | 7,108 |
Derivative liabilities | $ 782 | $ 4,507 |
Derivative Financial Instrume_7
Derivative Financial Instruments - Summary of Effect of Derivative Financial Instruments on Consolidated Statements of Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Amount of Gain (Loss) Recognized in OCI on Derivatives | $ 128,685 | $ 174,195 | ||
Amount of Loss Reclassified from Accumulated OCI into Income | 0 | (4) | ||
Interest expense | 136,619 | $ 82,352 | 237,333 | $ 160,723 |
Net Investment Hedges | Foreign Exchange Contracts | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Amount of Gain (Loss) Recognized in OCI on Derivatives | 128,685 | 174,195 | ||
Amount of Loss Reclassified from Accumulated OCI into Income | 0 | 0 | ||
Net cash settlements received | 96,200 | 122,500 | ||
Cash Flow Hedges | Interest rate derivatives | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Amount of Gain (Loss) Recognized in OCI on Derivatives | 0 | 0 | ||
Amount of Loss Reclassified from Accumulated OCI into Income | $ 0 | (4) | ||
Cash Flow Hedges | Interest rate derivatives | Interest Expense | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Interest expense | $ 4 |
Equity - Additional Information
Equity - Additional Information (Detail) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||||||
Jul. 15, 2022 USD ($) $ / shares | Jun. 30, 2022 USD ($) shares | Mar. 31, 2022 USD ($) | Jun. 30, 2021 USD ($) shares | Mar. 31, 2021 USD ($) | Jun. 30, 2022 USD ($) agreement shares | Jun. 30, 2021 USD ($) shares | Dec. 31, 2021 USD ($) shares | Mar. 25, 2014 shares | |
Class of Stock [Line Items] | |||||||||
Shares authorized (in shares) | shares | 500,000,000 | 500,000,000 | |||||||
Common stock, shares authorized (in shares) | shares | 400,000,000 | 400,000,000 | 400,000,000 | ||||||
Preferred stock, shares authorized (in shares) | shares | 100,000,000 | 100,000,000 | |||||||
Preferred stock, shares issued (in shares) | shares | 0 | 0 | 0 | ||||||
Preferred stock, shares outstanding (in shares) | shares | 0 | 0 | 0 | ||||||
Common stock, shares issued under dividend reinvestment program (in shares) | shares | 2,781 | 434 | 3,420 | 949 | |||||
Total dividends declared | $ 105,812 | $ 105,801 | $ 91,347 | $ 91,349 | $ 211,613 | $ 182,696 | |||
Accumulated other comprehensive income | 7,078 | 7,078 | $ 8,308 | ||||||
Net realized and unrealized gains related to changes in fair value of derivative instruments | 260,600 | 260,600 | 86,400 | ||||||
Cumulative unrealized currency translation adjustment on assets and liabilities denominated in foreign currencies | 253,500 | 253,500 | 78,100 | ||||||
Subsequent Event | |||||||||
Class of Stock [Line Items] | |||||||||
Dividends paid per common stock (in dollars per share) | $ / shares | $ 0.62 | ||||||||
Total dividends declared | $ 105,600 | ||||||||
Joint Venture | Multifamily | |||||||||
Class of Stock [Line Items] | |||||||||
Total equity | 169,300 | 169,300 | 203,500 | ||||||
Equity interests owned | 143,900 | 143,900 | 173,000 | ||||||
Non-controlling interests | $ 25,400 | $ 25,400 | $ 30,500 | ||||||
Dividend Reinvestment and Direct Stock Purchase Plan | |||||||||
Class of Stock [Line Items] | |||||||||
Common shares reserved for issuance (in shares) | shares | 9,986,370 | 9,986,370 | 10,000,000 | ||||||
ATM Agreement | |||||||||
Class of Stock [Line Items] | |||||||||
Number of equity distribution agreements | agreement | 7 | ||||||||
Aggregate sales price | $ 500,000 | ||||||||
Number of shares sold (in shares) | shares | 1,675,000 | 0 | |||||||
Shares sold | $ 52,200 | ||||||||
Aggregate sales price remaining available | $ 300,900 | $ 300,900 |
Equity - Summary of Class A Com
Equity - Summary of Class A Common Stock Issuances (Detail) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 6 Months Ended | |
May 31, 2013 | Jun. 30, 2022 | Jun. 30, 2021 | |
Class of Stock [Line Items] | |||
Shares issued (in shares) | 25,875,000 | 1,678,420 | 949 |
Net proceeds | $ 52,155 | $ 0 | |
Class A Common Stock | |||
Class of Stock [Line Items] | |||
Shares issued (in shares) | 1,675,000 | ||
Gross issue price per share | $ 31.55 | ||
Net issue price per share | $ 31.23 | ||
Net proceeds | $ 52,155 |
Equity - Schedule of Movement i
Equity - Schedule of Movement in Outstanding Shares of Class A Common Stock, Restricted Class A Common Stock and Deferred Stock Units (Detail) - shares | 1 Months Ended | 6 Months Ended | |
May 31, 2013 | Jun. 30, 2022 | Jun. 30, 2021 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning balance (in shares) | 168,543,370 | 147,086,722 | |
Issuance of class A common stock, net (in shares) | 25,875,000 | 1,678,420 | 949 |
Issuance of restricted class A common stock, net (in shares) | 436,831 | 234,838 | |
Issuance of deferred stock units (in shares) | 27,455 | 21,374 | |
Ending balance (in shares) | 170,686,076 | 147,343,883 | |
Deferred stock units held by directors (in shares) | 391,027 | 328,065 | |
Restricted Class A Common Stock | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Shares forfeited (in shares) | 4,000 | 28,971 | |
Restricted Class A Common Stock | Director | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Issuance of class A common stock, net (in shares) | 13,197 |
Equity - Schedule of Dividend A
Equity - Schedule of Dividend Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Class of Stock [Line Items] | ||||||
Dividends declared per share of common stock (in dollars per share) | $ 0.62 | $ 0.62 | $ 0.62 | $ 0.62 | $ 1.24 | $ 1.24 |
Deferred stock unit dividends declared | $ 229 | $ 197 | $ 455 | $ 387 | ||
Total dividends declared | 105,812 | $ 105,801 | 91,347 | $ 91,349 | 211,613 | 182,696 |
Class A Common Stock | ||||||
Class of Stock [Line Items] | ||||||
Class A common stock dividends declared | $ 105,583 | $ 91,150 | $ 211,158 | $ 182,309 |
Equity - Schedule of Basic and
Equity - Schedule of Basic and Diluted Earnings Per Share on Weighted-Average of Both Restricted and Unrestricted Class A Common Stock Outstanding (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Basic Earnings: | ||||
Net income | $ 93,250 | $ 131,595 | $ 192,937 | $ 211,497 |
Weighted-average shares outstanding, basic (in shares) | 170,665,601 | 147,342,822 | 169,963,730 | 147,339,895 |
Per share amount, basic (in dollars per share) | $ 0.55 | $ 0.89 | $ 1.14 | $ 1.44 |
Diluted Earnings: | ||||
Net income | $ 93,250 | $ 131,595 | $ 192,937 | $ 211,497 |
Add back: Interest expense on Convertible Notes, net | 5,913 | 0 | 8,313 | 0 |
Diluted earnings | $ 99,163 | $ 131,595 | $ 201,250 | $ 211,497 |
Weighted-average shares of common stock outstanding, basic (in shares) | 170,665,601 | 147,342,822 | 169,963,730 | 147,339,895 |
Effect of dilutive securities - Convertible Notes (in shares) | 14,344,204 | 0 | 10,368,611 | 0 |
Weighted-average common shares outstanding, diluted (in shares) | 185,009,805 | 147,342,822 | 180,332,341 | 147,339,895 |
Per share amount, diluted (in dollars per share) | $ 0.54 | $ 0.89 | $ 1.12 | $ 1.44 |
Dilutive securities for Convertible Notes (in shares) | 14,344,204 | 0 | 10,368,611 | 0 |
5.50% Convertible Senior Notes | ||||
Diluted Earnings: | ||||
Effect of dilutive securities - Convertible Notes (in shares) | 8,300,000 | 4,300,000 | ||
Dilutive securities for Convertible Notes (in shares) | 8,300,000 | 4,300,000 | ||
4.75% Convertible Senior Notes | ||||
Diluted Earnings: | ||||
Effect of dilutive securities - Convertible Notes (in shares) | 6,100,000 | 6,100,000 | ||
Dilutive securities for Convertible Notes (in shares) | 6,100,000 | 6,100,000 |
Other Expenses - Additional Inf
Other Expenses - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||
Management fees | $ 27,065 | $ 21,545 | $ 50,551 | $ 40,752 | |
Manager | |||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||
Management base fee percentage | 1.50% | 1.50% | |||
Management incentive fee percentage | 20% | 20% | |||
Management core earnings fee percentage | 7% | 7% | |||
Management core earnings fee measurement period (in years) | 3 years | ||||
Management core earnings fee minimum threshold | 0% | ||||
Management fees | $ 18,200 | 15,600 | $ 36,300 | 31,100 | |
Total incentive compensation payments | 8,800 | $ 6,000 | 14,300 | $ 9,600 | |
Accrued management and incentive fees payable | $ 27,100 | $ 27,100 | $ 28,400 |
Other Expenses - Schedule of Ge
Other Expenses - Schedule of General and Administrative Expenses (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Professional services | $ 2,693 | $ 2,043 | $ 5,390 | $ 3,861 |
Operating and other costs | 1,298 | 606 | 2,311 | 1,301 |
Subtotal | 3,991 | 2,649 | 7,701 | 5,162 |
Non-cash compensation expenses | ||||
Restricted class A common stock earned | 8,245 | 7,895 | 16,723 | 15,855 |
Director stock-based compensation | 173 | 125 | 345 | 250 |
Subtotal | 8,418 | 8,020 | 17,068 | 16,105 |
Total general and administrative expenses | 12,409 | 10,669 | 24,769 | 21,267 |
Multifamily | Joint Venture | ||||
Non-cash compensation expenses | ||||
Expenses related to multifamily joint venture | $ 227 | $ 197 | $ 544 | $ 433 |
Income Taxes (Detail)
Income Taxes (Detail) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
May 31, 2013 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |||||
Income tax provision | $ 746 | $ 175 | $ 892 | $ 276 | |
Shares issued (in shares) | 25,875,000 | 1,678,420 | 949 | ||
NOL limitation per annum | 2,000 | $ 2,000 | |||
Net operating losses carried forward | $ 159,000 | $ 159,000 |
Stock-Based Incentive Plans - A
Stock-Based Incentive Plans - Additional Information (Detail) $ in Millions | 6 Months Ended | |
Jun. 30, 2022 USD ($) plan shares | Dec. 31, 2021 shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of benefit plans | plan | 9 | |
Number of expired benefit plans | plan | 7 | |
Number of current benefit plans | plan | 2 | |
Restricted Class A Common Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted shares, vesting period (in years) | 3 years | |
Number of shares of restricted class A common stock outstanding (in shares) | 1,621,260 | 1,706,121 |
Unrecognized compensation cost relating to nonvested share-based compensation | $ | $ 48.1 | |
Unrecognized compensation cost expected to be recognized over weighted average period (in years) | 1 year 1 month 6 days | |
Expired Plans | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares available under plan (in shares) | 0 | |
Vest in 2022 | Restricted Class A Common Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares of restricted class A common stock outstanding (in shares) | 514,871 | |
Vest in 2023 | Restricted Class A Common Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares of restricted class A common stock outstanding (in shares) | 697,797 | |
Vest in 2024 | Restricted Class A Common Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares of restricted class A common stock outstanding (in shares) | 408,592 | |
Class A Common Stock | Stock Incentive Current Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares available under plan (in shares) | 10,011,288 | |
Maximum number of shares available under plan (in shares) | 10,400,000 |
Stock-Based Incentive Plans - M
Stock-Based Incentive Plans - Movement in Outstanding Shares of Restricted Class A Common Stock and Weighted-Average Grant Date Fair Value Per Share (Detail) - Restricted Class A Common Stock - $ / shares | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Restricted Class A Common Stock | ||
Beginning balance (in shares) | 1,706,121 | |
Granted (in shares) | 440,831 | |
Vested (in shares) | (521,692) | |
Forfeited (in shares) | (4,000) | (28,971) |
Ending balance (in shares) | 1,621,260 | |
Weighted-Average Grant Date Fair Value Per Share | ||
Beginning balance (in dollars per share) | $ 31.19 | |
Granted (in dollars per share) | 30.96 | |
Vested (in dollars per share) | 32.05 | |
Forfeited (in dollars per share) | 31.57 | |
Ending balance (in dollars per share) | $ 30.85 |
Fair Values - Assets and Liabil
Fair Values - Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Assets | ||
Derivatives | $ 83,982 | $ 30,531 |
Liabilities | ||
Derivatives | 2,589 | 5,890 |
Recurring | ||
Assets | ||
Derivatives | 83,982 | 30,531 |
Liabilities | ||
Derivatives | 2,589 | 5,890 |
Level 1 | Recurring | ||
Assets | ||
Derivatives | 0 | 0 |
Liabilities | ||
Derivatives | 0 | 0 |
Level 2 | Recurring | ||
Assets | ||
Derivatives | 83,982 | 30,531 |
Liabilities | ||
Derivatives | 2,589 | 5,890 |
Level 3 | Recurring | ||
Assets | ||
Derivatives | 0 | 0 |
Liabilities | ||
Derivatives | $ 0 | $ 0 |
Fair Values - Schedule of Detai
Fair Values - Schedule of Details of Book Value, Face Amount, and Fair Value of Financial Instruments (Detail) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Financial assets | ||
Cash and cash equivalents | $ 283,580 | $ 551,154 |
Loans receivable, net | 25,001,207 | 22,156,437 |
Debt securities held-to-maturity, net | 0 | 79,200 |
Financial liabilities | ||
Securitized debt obligations, net | 2,841,901 | 2,838,062 |
Securitized debt obligations, net, Face Amount | 2,855,625 | 2,855,625 |
Asset-specific debt net, Face Amount | 870,684 | 400,699 |
Loan participations sold, net | 225,884 | 0 |
Loan participations sold, net, Face Amount | 226,511 | 0 |
Secured debt, net | ||
Financial liabilities | ||
Face Value | 13,932,436 | 12,299,580 |
Secured term loans, net | ||
Financial liabilities | ||
Face Value | 1,842,401 | 1,349,271 |
Senior secured notes, net | ||
Financial liabilities | ||
Face Value | 400,000 | 400,000 |
Convertible notes, net | ||
Financial liabilities | ||
Face Value | 520,000 | 622,500 |
Book Value | ||
Financial assets | ||
Cash and cash equivalents | 283,580 | 551,154 |
Loans receivable, net | 24,698,522 | 21,878,338 |
Debt securities held-to-maturity, net | 0 | 78,013 |
Financial liabilities | ||
Securitized debt obligations, net | 2,841,901 | 2,838,062 |
Asset-specific debt, net | 860,007 | 393,824 |
Loan participations sold, net | 225,884 | 0 |
Book Value | Secured debt, net | ||
Financial liabilities | ||
Debt | 13,905,949 | 12,280,042 |
Book Value | Secured term loans, net | ||
Financial liabilities | ||
Debt | 1,809,942 | 1,327,406 |
Book Value | Senior secured notes, net | ||
Financial liabilities | ||
Debt | 394,562 | 394,010 |
Book Value | Convertible notes, net | ||
Financial liabilities | ||
Debt | 512,994 | 619,876 |
Fair Value | ||
Financial assets | ||
Cash and cash equivalents | 283,580 | 551,154 |
Loans receivable, net | 24,609,487 | 22,013,762 |
Debt securities held-to-maturity, net | 0 | 77,229 |
Financial liabilities | ||
Securitized debt obligations, net | 2,783,170 | 2,850,399 |
Asset-specific debt, net | 863,919 | 400,699 |
Loan participations sold, net | 226,511 | 0 |
Fair Value | Secured debt, net | ||
Financial liabilities | ||
Debt | 13,679,307 | 12,299,580 |
Fair Value | Secured term loans, net | ||
Financial liabilities | ||
Debt | 1,745,307 | 1,335,844 |
Fair Value | Senior secured notes, net | ||
Financial liabilities | ||
Debt | 349,212 | 399,012 |
Fair Value | Convertible notes, net | ||
Financial liabilities | ||
Debt | $ 490,006 | $ 630,821 |
Variable Interest Entities - Su
Variable Interest Entities - Summary of Assets and Liabilities of Consolidated VIE (Detail) - USD ($) $ in Thousands | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Assets: | ||||||
Loans receivable | $ 24,831,546 | $ 22,003,017 | ||||
Current expected credit loss reserve | (133,024) | $ (122,221) | (124,679) | $ (128,945) | $ (172,100) | $ (173,549) |
Loans receivable, net | 24,698,522 | 21,878,338 | ||||
Other assets | 461,145 | 273,797 | ||||
Assets | 25,443,247 | 22,703,289 | ||||
Liabilities: | ||||||
Securitized debt obligations, net | 2,841,901 | 2,838,062 | ||||
Other liabilities | 229,021 | 231,358 | ||||
Liabilities | 20,780,260 | 18,084,578 | ||||
VIE | ||||||
Assets: | ||||||
Loans receivable | 3,449,500 | 3,486,750 | ||||
Current expected credit loss reserve | (5,950) | (4,502) | ||||
Loans receivable, net | 3,443,550 | 3,482,248 | ||||
Other assets | 59,745 | 20,746 | ||||
Assets | 3,503,295 | 3,502,994 | ||||
Liabilities: | ||||||
Securitized debt obligations, net | 2,841,901 | 2,838,062 | ||||
Other liabilities | 3,316 | 1,800 | ||||
Liabilities | $ 2,845,217 | $ 2,839,862 |
Variable Interest Entities - Ad
Variable Interest Entities - Additional Information (Detail) - 2018 Single Asset Securitization $ in Millions | 3 Months Ended |
Sep. 30, 2018 USD ($) | |
Variable Interest Entity [Line Items] | |
Loan contributed to securitization | $ 517.5 |
Subordinate risk retention interest notional amount | 1,000 |
Subordinate position | $ 99 |
Transactions with Related Par_2
Transactions with Related Parties (Detail) € in Millions, £ in Millions, kr in Billions, $ in Billions | 3 Months Ended | 6 Months Ended | ||||||||
Jun. 30, 2022 USD ($) shares | Jun. 30, 2021 USD ($) | Mar. 31, 2021 USD ($) | Jun. 30, 2022 USD ($) shares | Jun. 30, 2021 USD ($) | Jun. 30, 2022 AUD ($) shares | Jun. 30, 2022 GBP (£) shares | Dec. 31, 2021 USD ($) shares | Jun. 30, 2021 EUR (€) | Mar. 31, 2021 SEK (kr) | |
Related Party Transaction [Line Items] | ||||||||||
Non-cash expenses | $ 17,068,000 | $ 16,105,000 | ||||||||
Net book value | $ 24,698,522,000 | 24,698,522,000 | $ 21,878,338,000 | |||||||
B-3 Term Loan | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Face Value | $ 417,280,000 | $ 417,280,000 | ||||||||
Senior Loan Origination Under Marketed Process | Senior Term Facility | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Face amount of loans | $ 5.4 | £ 500 | ||||||||
Senior Loan Origination Under Marketed Process | Senior Term Facility | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Net book value | $ 1.3 | £ 250 | ||||||||
Percentage of financing receivable | 0.245 | 0.245 | 0.245 | 0.245 | ||||||
Senior Loan Origination Under Marketed Process | Senior Term Facility | Blackstone-Advised Investment Vehicle | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Net book value | $ 1.3 | £ 250 | ||||||||
Percentage of financing receivable | 0.245 | 0.245 | 0.245 | 0.245 | ||||||
Restricted Class A Common Stock | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Shares held (in shares) | shares | 1,621,260 | 1,621,260 | 1,621,260 | 1,621,260 | 1,706,121 | |||||
Restricted shares, vesting period (in years) | 3 years | |||||||||
BXMT Advisors Limited Liability Company and Affiliates | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Accrued management and incentive fees payable | $ 27,100,000 | $ 27,100,000 | $ 28,400,000 | |||||||
Manager | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Accrued management and incentive fees payable | 27,100,000 | 27,100,000 | $ 28,400,000 | |||||||
Management fees paid to Manager | 23,500,000 | $ 19,200,000 | 51,900,000 | 38,400,000 | ||||||
Expenses reimbursed to Manager | $ 367,000 | 145,000 | $ 560,000 | 185,000 | ||||||
Manager | Restricted Class A Common Stock | Class A Common Stock | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Shares held (in shares) | shares | 807,636 | 807,636 | 807,636 | 807,636 | ||||||
Non-cash expenses | $ 4,200,000 | 4,100,000 | $ 8,400,000 | 8,100,000 | ||||||
Manager | Restricted Class A Common Stock | Class A Common Stock | Manager | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Non-cash expenses | $ 25,100,000 | |||||||||
Restricted shares, vesting period (in years) | 3 years | |||||||||
Affiliates of Manager | Third-Party Service Provider | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Administrative services expenses incurred | 95,000 | 92,000 | $ 192,000 | 192,000 | ||||||
Blackstone-Advised Investment Vehicles, or the Funds | B-3 Term Loan | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Gross financing amount | 100,000,000 | 100,000,000 | ||||||||
Blackstone-Advised Investment Vehicles, or the Funds | B-4 Term Loan | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Debt securities | $ 15,000,000 | $ 15,000,000 | ||||||||
Percentage of total secured term loans | 3% | 3% | 3% | 3% | ||||||
Face Value | $ 500,000,000 | $ 500,000,000 | ||||||||
Total incentive compensation payments | $ 500,000 | |||||||||
Blackstone-Advised Investment Vehicles, or the Funds | B-3 Term Loan | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Debt securities | $ 15,000,000 | $ 15,000,000 | ||||||||
Percentage of total secured term loans | 15% | 15% | 15% | |||||||
Total incentive compensation payments | $ 100,000 | |||||||||
Blackstone-Advised Investment Vehicles, or the Funds | B-1 Term Loan | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Debt securities | $ 5,500,000 | |||||||||
Percentage of total secured term loans | 3% | 3% | ||||||||
Total incentive compensation payments | $ 200,000 | |||||||||
Increase in loan | $ 200,000,000 | |||||||||
Blackstone-Advised Investment Vehicles, or the Funds | Senior Term Facility | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Face amount of loans | € | € 491 | |||||||||
Senior term facility | € | € 50 | |||||||||
Blackstone-Advised Investment Vehicles, or the Funds | Senior Term Facility | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Net book value | kr | kr 5 | |||||||||
Total amount of loans acquired | kr | kr 10.2 | |||||||||
Participation in facility | 49% | 49% |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2022 USD ($) loan director | |
Commitments And Contingencies [Line Items] | |
Number of members of board of directors | director | 9 |
Number of directors eligible for annual compensation | director | 6 |
Six Independent Board of Directors | |
Commitments And Contingencies [Line Items] | |
Annual cash compensation | $ 210,000 |
Annual cash compensation paid in cash | 95,000 |
Annual cash compensation paid in the form of deferred stock units | 115,000 |
Chairperson of Audit Committee | |
Commitments And Contingencies [Line Items] | |
Annual cash compensation | 20,000 |
Compensation and Corporate Governance Committees | |
Commitments And Contingencies [Line Items] | |
Annual cash compensation | 10,000 |
Compensation and Corporate Governance Committees | Amendment One | |
Commitments And Contingencies [Line Items] | |
Annual cash compensation | 15,000 |
Audit Committee Members | |
Commitments And Contingencies [Line Items] | |
Annual cash compensation | 10,000 |
Investment risk management committee | |
Commitments And Contingencies [Line Items] | |
Annual cash compensation | 7,500 |
Total loans receivable | |
Commitments And Contingencies [Line Items] | |
Unfunded loan commitments | $ 4,600,000,000 |
Number of loans receivable | loan | 125 |
Aggregate unfunded loan commitments | $ 2,700,000,000 |
Net unfunded commitments | $ 1,900,000,000 |
Weighted-average future funding period (in years) | 3 years 10 months 24 days |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of Principal Debt Repayments (Detail) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | ||
2022 (remaining) | $ 91,103 | |
2023 | 809,081 | |
2024 | 3,331,203 | |
2025 | 1,926,052 | |
2026 | 6,037,649 | |
2027 | 4,165,039 | |
Thereafter | 1,205,394 | |
Net book value | $ 17,565,521 | |
Amortization percentage | 1% | |
Securitized debt obligations excluded from contractual obligations | $ 2,900,000 | |
Nonconsolidated securitized debt excluded from contractual obligations | 1,500,000 | |
Loan participations sold, net, Face Amount | 226,511 | $ 0 |
Secured Debt | ||
Debt Instrument [Line Items] | ||
2022 (remaining) | 81,734 | |
2023 | 570,343 | |
2024 | 3,312,465 | |
2025 | 1,275,006 | |
2026 | 4,738,331 | |
2027 | 3,221,663 | |
Thereafter | 732,894 | |
Net book value | 13,932,436 | |
Asset-Specific Debt | ||
Debt Instrument [Line Items] | ||
2022 (remaining) | 0 | |
2023 | 0 | |
2024 | 0 | |
2025 | 632,308 | |
2026 | 0 | |
2027 | 238,376 | |
Thereafter | 0 | |
Net book value | 870,684 | |
Term Loans | ||
Debt Instrument [Line Items] | ||
2022 (remaining) | 9,369 | |
2023 | 18,738 | |
2024 | 18,738 | |
2025 | 18,738 | |
2026 | 1,299,318 | |
2027 | 5,000 | |
Thereafter | 472,500 | |
Net book value | 1,842,401 | |
Senior Secured Notes | ||
Debt Instrument [Line Items] | ||
2022 (remaining) | 0 | |
2023 | 0 | |
2024 | 0 | |
2025 | 0 | |
2026 | 0 | |
2027 | 400,000 | |
Thereafter | 0 | |
Net book value | 400,000 | |
Convertible Notes | ||
Debt Instrument [Line Items] | ||
2022 (remaining) | 0 | |
2023 | 220,000 | |
2024 | 0 | |
2025 | 0 | |
2026 | 0 | |
2027 | 300,000 | |
Thereafter | 0 | |
Net book value | $ 520,000 |