Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Mar. 06, 2023 | Jun. 30, 2022 | |
Document Information [Line Items] | |||
Entity Registrant Name | ACRES COMMERCIAL REALTY CORP. | ||
Entity Central Index Key | 0001332551 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2022 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Shell Company | false | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Common Stock, Shares Outstanding (in shares) | 8,685,452 | ||
Entity Public Float | $ 65,678,313 | ||
Entity File Number | 1-32733 | ||
Entity Tax Identification Number | 20-2287134 | ||
Entity Address, Address Line One | 390 RXR Plaza | ||
Entity Address, City or Town | Uniondale | ||
Entity Address, State or Province | NY | ||
Entity Address, Postal Zip Code | 11556 | ||
City Area Code | 516 | ||
Local Phone Number | 535-0015 | ||
Entity Interactive Data Current | Yes | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity Incorporation, State or Country Code | MD | ||
ICFR Auditor Attestation Flag | true | ||
Auditor Name | GRANT THORNTON LLP | ||
Auditor Location | San Francisco, California | ||
Auditor Firm ID | 248 | ||
Documents Incorporated by Reference | The information required by Part III of this Form 10-K, to the extent not set forth herein or by amendment, is incorporated by reference from the registrant’s definitive proxy statement to be filed with the Securities and Exchange Commission not later than 120 days after December 31, 2022. | ||
Common Stock | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Common Stock, $0.001 par value | ||
Trading Symbol | ACR | ||
Security Exchange Name | NYSE | ||
8.625% Fixed-to-Floating Series C Cumulative Redeemable Preferred Stock | |||
Document Information [Line Items] | |||
Title of 12(b) Security | 8.625% Fixed-to-Floating Series C Cumulative Redeemable Preferred Stock | ||
Trading Symbol | ACRPrC | ||
Security Exchange Name | NYSE | ||
7.875% Series D Cumulative Redeemable Preferred Stock | |||
Document Information [Line Items] | |||
Title of 12(b) Security | 7.875% Series D Cumulative Redeemable Preferred Stock | ||
Trading Symbol | ACRPrD | ||
Security Exchange Name | NYSE |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
ASSETS: | ||
Cash and cash equivalents | $ 66,232 | $ 35,500 |
Restricted cash | 38,579 | 248,431 |
Accrued interest receivable | 11,969 | 6,112 |
CRE loans | 2,057,590 | 1,882,551 |
Less: allowance for credit losses | (18,803) | (8,805) |
CRE loans, net | 2,038,787 | 1,873,746 |
Principal paydowns receivable | 0 | 14,899 |
Loan receivable - related party | 11,275 | 11,575 |
Investments in unconsolidated entities | 1,548 | 1,548 |
Properties held for sale | 53,769 | 17,846 |
Investments in real estate | 120,968 | 59,308 |
Right of use assets | 20,281 | 5,951 |
Intangible assets | 8,880 | 3,877 |
Other assets | 4,364 | 5,482 |
Total assets | 2,376,652 | 2,284,275 |
LIABILITIES | ||
Accounts payable and other liabilities | 10,391 | 7,025 |
Management fee payable - related party | 898 | 561 |
Accrued interest payable | 6,921 | 5,937 |
Borrowings | 1,867,033 | 1,814,424 |
Lease liabilities | 43,695 | 3,537 |
Distributions payable | 3,262 | 3,262 |
Accrued tax liability | 113 | 1 |
Liabilities held for sale | 3,025 | 1,333 |
Total liabilities | 1,935,338 | 1,836,080 |
EQUITY | ||
Common stock, par value $0.001: 41,666,666 shares authorized; 8,708,100 and 9,149,079 shares issued and outstanding (including 583,333 and 333,329 unvested restricted shares) | 9 | 9 |
Additional paid-in capital | 1,174,202 | 1,179,863 |
Accumulated other comprehensive loss | (6,394) | (8,127) |
Distributions in excess of earnings | (732,359) | (723,560) |
Total stockholders’ equity | 435,468 | 448,195 |
Non-controlling interests | 5,846 | |
Total equity | 441,314 | 448,195 |
TOTAL LIABILITIES AND EQUITY | 2,376,652 | 2,284,275 |
8.625% Series C Preferred Stock | ||
EQUITY | ||
Preferred stock, value | 5 | 5 |
7.875% Series D Preferred Stock | ||
EQUITY | ||
Preferred stock, value | $ 5 | $ 5 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 41,666,666 | 41,666,666 |
Common stock, shares issued (in shares) | 8,708,100 | 9,149,079 |
Common stock, shares outstanding (in shares) | 8,708,100 | 9,149,079 |
Common stock, shares issued, non-vested restricted shares (in shares) | 583,333 | 333,329 |
Assets of consolidated variable interest entities (VIEs) included in total assets above: | ||
Restricted cash | $ 38,579 | $ 248,431 |
Accrued interest receivable | 11,969 | 6,112 |
CRE loans | 2,038,787 | 1,873,746 |
Other assets | 4,364 | 5,482 |
Total assets of consolidated VIEs | 2,376,652 | 2,284,275 |
Accounts payable and other liabilities | 10,391 | 7,025 |
Accrued interest payable | 6,921 | 5,937 |
Borrowings | 1,867,033 | 1,814,424 |
Total liabilities of consolidated VIEs | $ 1,935,338 | $ 1,836,080 |
8.625% Series C Preferred Stock | ||
Assets of consolidated variable interest entities (VIEs) included in total assets above: | ||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, liquidation preference (in dollars per share) | $ 25 | $ 25 |
Preferred stock, coupon authorized | 8.625% | 8.625% |
Preferred stock, shares issued (in shares) | 4,800,000 | 4,800,000 |
Preferred stock, shares outstanding (in shares) | 4,800,000 | 4,800,000 |
7.875% Series D Preferred Stock | ||
Assets of consolidated variable interest entities (VIEs) included in total assets above: | ||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 6,800,000 | 6,800,000 |
Preferred stock, liquidation preference (in dollars per share) | $ 25 | $ 25 |
Preferred stock, coupon authorized | 7.875% | 7.875% |
Preferred stock, shares issued (in shares) | 4,607,857 | 4,607,857 |
Preferred stock, shares outstanding (in shares) | 4,607,857 | 4,607,857 |
VIE, Primary Beneficiary | ||
Assets of consolidated variable interest entities (VIEs) included in total assets above: | ||
Restricted cash | $ 38,180 | $ 248,371 |
Accrued interest receivable | 8,184 | 3,826 |
Principal paydowns receivable | 14,899 | |
Other assets | 119 | 36 |
Total assets of consolidated VIEs | 1,503,132 | 1,868,614 |
Accounts payable and other liabilities | 93 | 315 |
Accrued interest payable | 3,083 | 997 |
Borrowings | 1,233,556 | 1,466,499 |
Total liabilities of consolidated VIEs | 1,236,732 | 1,467,811 |
VIE, Primary Beneficiary | Pledged as Collateral | ||
Assets of consolidated variable interest entities (VIEs) included in total assets above: | ||
CRE loans | $ 1,456,649 | $ 1,601,482 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Interest income: | |||
CRE loans | $ 125,539 | $ 100,774 | $ 101,303 |
Securities | 161 | 6,717 | |
Other | 735 | 97 | 223 |
Total interest income | 126,274 | 101,032 | 108,243 |
Interest expense | 82,324 | 61,575 | 58,008 |
Net interest income | 43,950 | 39,457 | 50,235 |
Real estate income | 31,129 | 10,553 | |
Other revenue | 91 | 65 | 76 |
Total revenues | 75,170 | 50,075 | 50,311 |
OPERATING EXPENSES | |||
General and administrative | 10,575 | 11,602 | 14,335 |
Real estate expenses | 33,854 | 10,601 | 298 |
Management fees - related party | 7,035 | 6,089 | 6,054 |
Equity compensation - related party | 3,562 | 1,722 | 3,136 |
Corporate depreciation and amortization | 85 | 94 | 49 |
Provision for (reversal of) credit losses, net | 12,295 | (21,262) | 30,815 |
Total operating expenses | 67,406 | 8,846 | 54,687 |
Net interest and other revenues less operating expenses | 7,764 | 41,229 | (4,376) |
OTHER INCOME (EXPENSE) | |||
Net realized and unrealized gain (loss) on investment securities available-for-sale and loans and derivatives | 878 | (186,610) | |
Fair value adjustments on financial assets held for sale | (8,768) | ||
Gain on conversion of real estate | 1,570 | ||
Loss on extinguishment of debt | (460) | (9,006) | |
Gain on sale of real estate | 1,870 | ||
Other income | 1,588 | 822 | 471 |
Total other income (expense) | 2,998 | (7,306) | (193,337) |
INCOME (LOSS) BEFORE TAXES | 10,762 | 33,923 | (197,713) |
Income tax expense | (336) | ||
NET INCOME (LOSS) | 10,426 | 33,923 | (197,713) |
Net income allocated to preferred shares | (19,422) | (15,887) | (10,350) |
Net loss allocable to non-controlling interest, net of taxes | 197 | 0 | 0 |
NET (LOSS) INCOME ALLOCABLE TO COMMON SHARES | $ (8,799) | $ 18,036 | $ (208,063) |
NET (LOSS) INCOME PER COMMON SHARE - BASIC | $ (1) | $ 1.85 | $ (19.33) |
NET (LOSS) INCOME PER COMMON SHARE - DILUTED | $ (1) | $ 1.85 | $ (19.33) |
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - BASIC (in shares) | 8,811,761 | 9,736,268 | 10,763,261 |
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - DILUTED (in shares) | 8,811,761 | 9,763,217 | 10,763,261 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ 10,426 | $ 33,923 | $ (197,713) |
Other comprehensive income (loss): | |||
Reclassification adjustments for realized losses on investment securities available-for-sale included in net income loss | 0 | 0 | 185,463 |
Unrealized losses on investment securities available-for-sale, net | 0 | 0 | (191,283) |
Reclassification adjustments associated with net unrealized losses from interest rate swaps included in net income (loss) | 1,733 | 1,851 | 1,254 |
Unrealized losses on derivatives, net | 0 | 0 | (7,233) |
Total other comprehensive income (loss) | 1,733 | 1,851 | (11,799) |
Comprehensive income (loss) before allocation to preferred shares | 12,159 | 35,774 | (209,512) |
Net loss allocated to non-controlling interests shares | 197 | 0 | 0 |
Net income allocated to preferred shares | (19,422) | (15,887) | (10,350) |
Comprehensive (loss) income allocable to common shares | $ (7,066) | $ 19,887 | $ (219,862) |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Cumulative Effect, Period of Adoption, Adjusted Balance | Common Stock | Common Stock Cumulative Effect, Period of Adoption, Adjusted Balance | Preferred Stock 8.625% Series C Preferred Stock | Preferred Stock 8.625% Series C Preferred Stock Cumulative Effect, Period of Adoption, Adjusted Balance | Preferred Stock 7.875% Series D Preferred Stock | Additional Paid-in Capital | Additional Paid-in Capital Cumulative Effect, Period of Adoption, Adjusted Balance | Accumulated Other Comprehensive (Loss) Income | Accumulated Other Comprehensive (Loss) Income Cumulative Effect, Period of Adoption, Adjusted Balance | Retained Earnings (Distributions In Excess of Earnings) | Retained Earnings (Distributions In Excess of Earnings) Cumulative Effect, Period of Adoption, Adjustment | Retained Earnings (Distributions In Excess of Earnings) Cumulative Effect, Period of Adoption, Adjusted Balance | Parent | Parent Cumulative Effect, Period of Adoption, Adjustment | Parent Cumulative Effect, Period of Adoption, Adjusted Balance | Non-Controlling Interest |
Beginning balance at Dec. 31, 2019 | $ 556,398 | $ (3,032) | $ 553,366 | $ 11 | $ 11 | $ 5 | $ 5 | $ 1,085,062 | $ 1,085,062 | $ 1,821 | $ 1,821 | $ (530,501) | $ (3,032) | $ (533,533) | $ 556,398 | $ (3,032) | $ 553,366 | ||
Beginning balance (in shares) at Dec. 31, 2019 | 10,626,864 | 10,626,864 | |||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||
Equity component of 12% Senior Unsecured Notes | 3,108 | 3,108 | 3,108 | ||||||||||||||||
Purchase and retirement of common stock | (5,365) | $ (1) | (5,364) | (5,365) | |||||||||||||||
Purchase and retirement of common stock (in shares) | (535,485) | ||||||||||||||||||
Stock-based compensation | (1) | (1) | (1) | ||||||||||||||||
Stock-based compensation (in shares) | 80,906 | ||||||||||||||||||
Amortization of stock-based compensation | 3,136 | 3,136 | 3,136 | ||||||||||||||||
Forfeiture of unvested stock (in shares) | (9,996) | ||||||||||||||||||
Net income (loss) | (197,713) | (197,713) | (197,713) | ||||||||||||||||
Distributions and accrual of cumulative preferred stock dividends | (10,350) | (10,350) | (10,350) | ||||||||||||||||
Securities available-for-sale without an allowance for credit losses, fair value adjustment, net | (5,820) | (5,820) | (5,820) | ||||||||||||||||
Designated derivatives, fair value adjustment | (5,979) | (5,979) | (5,979) | ||||||||||||||||
Ending balance at Dec. 31, 2020 | 334,382 | $ 10 | 5 | 1,085,941 | (9,978) | (741,596) | 334,382 | ||||||||||||
Ending balance (in shares) at Dec. 31, 2020 | 10,162,289 | ||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||
Proceeds from issuance of preferred stock | 115,194 | $ 5 | 115,189 | 115,194 | |||||||||||||||
Offering costs | (4,589) | (4,589) | (4,589) | ||||||||||||||||
Purchase and retirement of common stock | (18,401) | $ (1) | (18,400) | (18,401) | |||||||||||||||
Purchase and retirement of common stock (in shares) | (1,346,539) | ||||||||||||||||||
Stock-based compensation (in shares) | 333,329 | ||||||||||||||||||
Amortization of stock-based compensation | 1,722 | 1,722 | 1,722 | ||||||||||||||||
Net income (loss) | 33,923 | 33,923 | 33,923 | ||||||||||||||||
Distributions and accrual of cumulative preferred stock dividends | (15,887) | (15,887) | (15,887) | ||||||||||||||||
Amortization of terminated derivatives | 1,851 | 1,851 | 1,851 | ||||||||||||||||
Ending balance at Dec. 31, 2021 | $ 448,195 | $ 9 | 5 | 5 | 1,179,863 | (8,127) | (723,560) | 448,195 | |||||||||||
Ending balance (in shares) at Dec. 31, 2021 | 9,149,079 | 9,149,079 | |||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||
Offering costs | $ (101) | (101) | (101) | ||||||||||||||||
Conversion of 4.5% convertible senior notes | 4 | 4 | 4 | ||||||||||||||||
Exercise of warrants at $0.003 per share | 2 | 2 | 2 | ||||||||||||||||
Exercise of warrants (in shares) | 74,666 | ||||||||||||||||||
Purchase and retirement of common stock | (9,128) | (9,128) | (9,128) | ||||||||||||||||
Purchase and retirement of common stock (in shares) | (848,978) | ||||||||||||||||||
Stock-based compensation (in shares) | 333,333 | ||||||||||||||||||
Amortization of stock-based compensation | 3,562 | 3,562 | 3,562 | ||||||||||||||||
Contributions from non-controlling interests | 6,043 | $ 6,043 | |||||||||||||||||
Net income (loss) | 10,426 | 10,623 | 10,623 | (197) | |||||||||||||||
Distributions and accrual of cumulative preferred stock dividends | (19,422) | (19,422) | (19,422) | ||||||||||||||||
Amortization of terminated derivatives | 1,733 | 1,733 | 1,733 | ||||||||||||||||
Ending balance at Dec. 31, 2022 | $ 441,314 | $ 9 | $ 5 | $ 5 | $ 1,174,202 | $ (6,394) | $ (732,359) | $ 435,468 | $ 5,846 | ||||||||||
Ending balance (in shares) at Dec. 31, 2022 | 8,708,100 | 8,708,100 |
CONSOLIDATED STATEMENT OF CHA_2
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (Parenthetical) | Dec. 31, 2020 |
12% Senior Unsecured Notes | |
Debt instrument, interest rate, stated percentage | 12% |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income (loss) | $ 10,426 | $ 33,923 | $ (197,713) |
Adjustments to reconcile net income (loss) from continuing operations to net cash provided by continuing operating activities: | |||
Provision for (reversal of) credit losses, net | 12,295 | (21,262) | 30,815 |
Depreciation, amortization and accretion | 7,491 | 13,988 | 6,524 |
Amortization of stock-based compensation | 3,562 | 1,722 | 3,136 |
Loss on extinguishment of debt | 460 | 4,043 | |
Net realized and unrealized (gain) loss on investment securities available-for-sale and loans and derivatives | (878) | 186,545 | |
Gain on sale of real estate | (1,870) | ||
Net gain on conversion to real estate | (1,794) | ||
Fair value and other adjustments on asset held for sale | 8,768 | ||
Changes in operating assets and liabilities: | |||
(Increase) decrease in accrued interest receivable, net of purchased interest | (6,138) | 1,347 | (322) |
Increase in interest receivable - related party | (39) | ||
Increase (decrease) in management fee payable | 337 | 119 | (259) |
Increase (decrease) in accounts payable and other liabilities | 2,743 | 4,101 | (559) |
Decrease in lease liability | (94) | (39) | |
Increase (decrease) in accrued interest payable | 985 | (39) | 1,536 |
Decrease (increase) in other assets | 2,500 | 3,567 | (4,828) |
Net cash provided by operating activities | 32,697 | 40,592 | 31,810 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Origination and purchase of loans | (583,543) | (1,381,660) | (298,094) |
Principal payments received on loans and leases | 414,450 | 1,008,967 | 509,236 |
Investments in real estate | (81,749) | (28,924) | |
Proceeds from sale of real estate | 18,729 | ||
Proceeds from sale of loans or assets previously held for sale | 7,915 | 27,745 | |
Purchase of investment securities available-for-sale | (24,610) | ||
Principal payments on investment securities available-for-sale | 4,733 | ||
Proceeds from sale of investment securities available-for-sale | 2,958 | 37,764 | |
Purchase of furniture and fixtures | (741) | (61) | (5) |
Investment in loan - related party | (12,000) | ||
Principal payments received on loan - related party | 300 | 300 | 125 |
Net cash (used in) provided by investing activities | (232,554) | (390,505) | 244,894 |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Repurchase of common stock | (9,128) | (18,401) | (5,365) |
Proceeds from issuance of preferred shares (net of $101 and $4,589 of underwriting discounts and offering costs) | (101) | 110,605 | |
Proceeds from exercise of warrants | 2 | ||
Proceeds from borrowings: | |||
Securitizations | 1,242,223 | 639,074 | |
Senior secured financing facility | 101,699 | 173,087 | 128,495 |
Warehouse financing facilities and repurchase agreements | 405,743 | 862,681 | 288,555 |
Senior unsecured notes | 150,000 | 50,000 | |
Mortgage payable | 18,710 | ||
Payments on borrowings: | |||
Securitizations | (237,189) | (801,622) | (413,023) |
Senior secured financing facility | (10,150) | (206,447) | (95,135) |
Warehouse financing facilities and repurchase agreements | (145,972) | (805,119) | (827,684) |
Convertible senior notes | (88,010) | (55,736) | (21,182) |
Senior unsecured notes | (50,000) | ||
Payment of debt issuance costs | (1,488) | (20,818) | (16,253) |
Settlement of derivative instruments | (11,762) | ||
Proceeds received from non-controlling interests | 6,043 | ||
Distributions paid on preferred stock | (19,422) | (14,350) | (10,350) |
Distributions paid on common stock | (8,767) | ||
Net cash provided by (used in) financing activities | 20,737 | 566,103 | (303,397) |
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH | (179,120) | 216,190 | (26,693) |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT BEGINNING OF YEAR | 283,931 | 67,741 | 94,434 |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT END OF YEAR | $ 104,811 | $ 283,931 | $ 67,741 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Cash Flows [Abstract] | ||
Underwriting discounts and offering costs | $ 101 | $ 4,589 |
ORGANIZATION
ORGANIZATION | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION | NOTE 1 - ORGANIZATION ACRES Commercial Realty Corp., a Maryland corporation, along with its subsidiaries (collectively, the “Company”), is a REIT that is primarily focused on originating, holding and managing commercial real estate (“CRE”) mortgage loans and equity investments in commercial real estate properties through direct ownership and joint ventures. On July 31, 2020, the Company’s management contract was acquired from Exantas Capital Manager Inc. (the “Prior Manager”), a subsidiary of C-III Capital Partners LLC (“C-III”), by ACRES Capital, LLC (the “Manager”), a subsidiary of ACRES Capital Corp. (collectively, “ACRES”), a private commercial real estate lender exclusively dedicated to nationwide middle market CRE lending with a focus on multifamily, student housing, hospitality, office and industrial property in top United States (“U.S.”) markets (the “ACRES acquisition”). The Company has qualified, and expects to qualify in the current fiscal year, as a REIT. The Company conducts its operations through the use of subsidiaries that it consolidates into its financial statements. The Company’s core assets are consolidated through its investment in ACRES Realty Funding, Inc. (“ACRES RF”), a wholly-owned subsidiary that holds CRE loans, CRE-related securities and investments in CRE securitizations, which are consolidated as VIEs as discussed in Note 3, and special purpose entities. Reverse Stock Split Effective February 16, 2021, the Company completed a one-for-three reverse stock split of its outstanding common stock. The accompanying financial statements and notes to the financial statements give retroactive effect to the reverse stock split for all periods presented. In addition, the Company adopted articles of amendment to its charter, which provided that the par value of the Company’s common stock remained $ 0.001 immediately after effect was given for the reverse stock split. No fractional shares were issued in connection with the reverse stock split. Stockholders who otherwise held fractional shares of the Company’s common stock as a result of the reverse stock split received a cash payment in lieu of such fractional shares. In May 2021, the Company adopted articles of amendment to its charter to decrease its authorized shares of capital stock from 225,000,000 shares, consisting of 125,000,000 shares of common stock and 100,000,000 shares of preferred stock to 141,666,666 shares consisting of 41,666,666 shares of common stock and 100,000,000 shares of preferred stock. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the U.S. (“GAAP”). The consolidated financial statements include the accounts of the Company, majority-owned or controlled subsidiaries and VIEs for which the Company is considered the primary beneficiary. All inter-company transactions and balances have been eliminated in consolidation. Variable Interest Entities A VIE is defined as an entity in which equity investors (i) do not have 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. A VIE is required to be consolidated by its primary beneficiary, which is defined as the party that (a) has the power to control the activities that most significantly impact the VIE’s economic performance and (b) has the obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. The Company considers the following criteria in determining whether an entity is a VIE: 1. The equity investment at risk is not sufficient to permit the entity to finance its activities without additional subordinated financial support provided by any parties, including the equity holders. 2. The equity investors lack one or more of the following essential characteristics of a controlling financial interest. a. The direct ability to make decisions about the entity’s activities through voting rights or similar rights. b. The obligation to absorb the expected losses of the entity. c. The right to receive the expected residual returns of the entity. The equity investors have voting rights that are not proportionate to their economic interests, and the activities of the entity involve or are conducted on behalf of an investor with a disproportionately small voting interest. In determining whether the Company is the primary beneficiary of a VIE, the Company reviews governing contracts, formation documents and any other contractual arrangements for any relevant terms and determines the activities that have the most significant impact on the VIE and who has the power to direct those activities. The Company also looks for kick-out rights, protective rights and participating rights as well as any financial or other support provided to the VIE and the reason for that support, and the terms of any explicit or implicit arrangements that may require the Company to provide future support. The Company then makes a determination based on its power to direct the most significant activities of the VIE and/or a financial interest that is potentially significant. In instances when a VIE is owned by both the Company and related parties, the Company considers whether there is a single party in the related party group that meets both the power and losses or benefits criteria on its own as though no related party relationship existed. If one party within the related party group meets both these criteria, such reporting entity is the primary beneficiary of the VIE and no further analysis is needed. If no party within the related party group on its own meets both the power and losses or benefits criteria, but the related party group as a whole meets these two criteria, the determination of primary beneficiary within the related party group is based upon an analysis of the facts and circumstances with the objective of determining which party is most closely associated with the VIE. Determining the primary beneficiary requires significant judgment. The Company continuously analyzes entities in which it holds variable interests, including when there is a reconsideration event, to determine whether such entities are VIEs and whether such potential VIEs should be consolidated or deconsolidated. Voting Interest Entities A voting interest entity is an entity in which the total equity investment at risk is sufficient to enable it to finance its activities independently and the equity holders have the power to direct the activities of the entity that most significantly impact its economic performance, the obligation to absorb the losses of the entity and the right to receive the residual returns of the entity. The usual condition for a controlling financial interest in a voting interest entity is ownership of a majority voting interest. If the Company has a majority voting interest in a voting interest entity, the entity will generally be consolidated. The Company does not consolidate a voting interest entity if there are substantive participating rights by other parties and/or kick-out rights by a single party or through a simple majority vote. The Company performs on-going reassessments of whether entities previously evaluated under the voting interest framework have become VIEs, based on certain events, and therefore subject to the VIE consolidation framework. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and within the period of financial results. Actual results could differ from those estimates. Estimates affecting the accompanying consolidated financial statements include but are not limited to the net realizable and fair values of the Company’s investments and derivatives, the estimated useful lives used to calculate depreciation, the expected lives over which to amortize premiums and accrete discounts, provisions for or reversals of expected credit losses and the disclosure of contingent liabilities. Cash and Cash Equivalents Cash and cash equivalents include cash on hand and all highly liquid investments with original maturities of three months or less at the time of purchase. At December 31, 2022 and 2021 , $ 63.3 million and $ 33.3 million, respectively, of the reported cash balances exceeded the Federal Deposit Insurance Corporation and Securities Investor Protection Corporation deposit insurance limits of $250,000 per respective depository or brokerage institution. However, all of the Company’s cash deposits are held at multiple, established financial institutions, in multiple accounts associated with its parent and respective consolidated subsidiaries, to minimize credit risk exposure. Restricted cash includes required account balance minimums as well as cash held for primarily for the Company’s CRE debt securitizations as well as cash held in the CRE debt securitizations and the syndicated corporate loan collateralized debt obligations (“CDOs”). The following table provides a reconciliation of cash, cash equivalents and restricted cash on the consolidated balance sheets to the total amount shown on the consolidated statements of cash flows (in thousands): December 31, 2022 2021 Cash and cash equivalents $ 66,232 $ 35,500 Restricted cash 38,579 248,431 Total cash, cash equivalents and restricted cash shown on the Company’s consolidated statements of cash flows $ 104,811 $ 283,931 Investment in Unconsolidated Entities The Company’s non-controlling investments in unconsolidated entities are included in investments in unconsolidated entities on the consolidated balance sheets and are accounted for under the cost method. Under the cost method, the Company records dividend income when declared to the extent it is not considered a return of capital, which is recorded as a reduction of the cost of the investment. Loans The Company acquires loans through direct origination and occasionally through purchases from third-parties and had historically acquired corporate leveraged loans in the secondary market and through syndications of newly originated loans. Loans are held for investment; therefore, the Company initially records loans at the amount funded for originated loans or at the acquisition price for loans purchased, and subsequently, accounts for them based on their outstanding principal plus or minus unamortized premiums or discounts. The Company may sell a loan held for investment where the credit fundamentals underlying a particular loan have changed in such a manner that the Company’s expected return on investment may decrease. Once the determination has been made by the Company that it no longer will hold the loan for investment, the Company identifies these loans as loans held for sale. Any credit-related write-off considerations prior to the transfer of the loan to loans held for sale are accounted for through the allowance for credit losses on the Company’s consolidated balance sheets. The Company reports its loans held for sale at the lower of amortized cost or fair value. To determine fair value, the Company primarily uses appraisals of underlying collateral obtained from third-parties as a practical expedient. Key assumptions used in those appraisals are reviewed by the Company. If there is a material difference between the value provided by the appraiser and information used by the Company to validate the appraisal, the Company will evaluate the difference with the appraiser, which could result in an updated appraisal. The Company may also use the present value of estimated cash flows, market price, if available, or other determinants of the fair value of the collateral less estimated disposition costs. Any determined changes in the fair value of loans held for sale are recorded in fair value adjustments on financial assets held for sale on the Company’s consolidated statements of operations. Based on a prioritization of inputs used in the valuation of each position, the Company categorizes these investments as either Level 2 or Level 3 in the fair value hierarchy. Loan Interest Income Recognition Interest income on loans includes interest at stated rates adjusted for amortization or accretion of premiums and discounts based on the contractual payment terms of the loan. Premiums and discounts are amortized or accreted into income using the effective yield method. If a loan with a premium or discount is prepaid, the Company immediately recognizes the unamortized portion as a decrease or increase to interest income. In addition, the Company defers loan origination and extension fees and loan origination costs and recognizes them over the life of the related loan against interest income using the straight line method, which approximates the effective yield method. Income recognition is suspended for loans at the earlier of the date at which payments become 90 days past due or when, in the opinion of management, a full recovery of principal and income becomes doubtful. When the ultimate collectability of the principal is in doubt, all payments received are applied to principal under the cost recovery method. On the other hand, when the ultimate collectability of the principal is not in doubt, contractual interest is recorded as interest income when received, under the cash method, until an accrual is resumed when the loan becomes contractually current and performance is demonstrated to be resumed. A loan is written off when it is no longer realizable and/or legally discharged. The Company records interest receivable on its loans in accrued interest receivable on its consolidated balance sheets. The Company analyzes the interest receivable balances on a timely basis, or at least quarterly, to determine if they are uncollectible. If an interest receivable amount is deemed uncollectible, then the Company writes off that uncollectible amount of the interest receivable through a reversal of interest income. Preferred Equity Investment Historically, the Company invested in preferred equity investments. Preferred equity investments, which are subordinate to any loans but senior to common equity, depending on the investment’s characteristics, could be accounted for as real estate, joint ventures or as mortgage loans. The Company’s preferred equity investments were accounted for as CRE loans held for investment, were carried at cost, net of unamortized loan fees and origination costs, and were included within CRE loans on the Company’s consolidated balance sheets. The Company accreted or amortized any discounts or premiums over the life of the related loan utilizing the effective interest method. Interest and fees were recognized as income subject to recoverability, which was substantiated by obtaining annual appraisals on the underlying property. Allowance for Credit Losses The Company maintains an allowance for credit loss on its loans held for investment. Effective January 1, 2020, the Company determines its allowance for credit losses by measuring the current expected credit losses (“CECL”) on the loan portfolio on a quarterly basis. The Company utilizes a probability of default and loss given default methodology together with collateral-specific data for each loan over a reasonable and supportable forecast period after which it reverts to its historical mean loss ratio, utilizing a blended approach sourced from its own historical losses and the market losses from an engaged third party’s database, to be applied for the remaining estimable period. The CECL model requires the Company to make significant judgments, including: (i) the selection of a reasonable and supportable forecast period, (ii) the selection and weighting of appropriate macroeconomic forecast scenarios, (iii) projections for the amounts and timing of future fundings of committed balances and prepayments on CRE investments, (iv) the determination of the risk characteristics in which to pool financial assets, and (v) the appropriate historical loss data to use in the model. Unfunded commitments are not considered in the CECL reserve if they are unconditionally cancellable by the Company. The Company measures the loan portfolio’s credit losses by grouping loans based on similar risk characteristics under CECL, which is typically based on the loan’s collateral type. The Company regularly evaluates the risk characteristics of its loan portfolio to determine whether a different pooling methodology is more accurate. Further, if the Company determines that foreclosure of a loan’s collateral is probable or repayment of the loan is expected through sale or operation of the collateral and the borrower is experiencing financial difficulty, expected credit losses are measured as the difference between the current fair value of the collateral and the amortized cost of the loan. Fair value may be determined based on (i) the present value of estimated cash flows; (ii) the market price, if available; or (iii) the fair value of the collateral less estimated disposition costs. While a loan exhibiting credit quality deterioration may remain on accrual status, the loan is placed on non-accrual status at such time as (i) management believes that scheduled debt service payments will not be met within the coming 12 months; (ii) the loan becomes 90 days past due; (iii) management determines the borrower is incapable of, or has ceased efforts toward, curing the cause of the credit deterioration; or (iv) the net realizable value of the loan’s underlying collateral approximates the Company’s carrying value for such loan. While on non-accrual status, the Company recognizes interest income only when an actual payment is received if a credit analysis supports the borrower’s principal repayment capacity. When a loan is placed on non-accrual, previously accrued and uncollected interest is reversed from interest income. The Company utilizes the contractual life of its loans to estimate the period over which it measures expected credit losses. Estimates for prepayments and extensions are incorporated into the inputs for the Company’s CECL model. Modifications to loan terms, such as a modification in connection with a troubled debt restructuring (“TDR”), where a concession is granted to a borrower experiencing financial difficulty, may result in the extension of the loan’s life and an increase in the allowance for credit losses. In March 2020, the Financial Accounting Standards Board (“FASB”) concurred with a joint statement of federal and state banking regulators that eased the requirements to classify a modification as a TDR if the modification was granted in connection with the effects of the COVID-19 pandemic. If the concession granted on a TDR can only be captured through a discounted cash flow analysis, then the Company will individually assess the loan for expected credit losses using the discounted cash flow method. In order to calculate the historical mean loss ratio applied to the loan portfolio, the Company utilizes historical losses from its full underwriting history, along with the market loss history of a selected population of loans from a third party’s database that are similar to the Company’s loan types, loan sizes, durations, interest rate structure and general loan-to-collateral value (“LTV”) profiles. The Company may make adjustments to the historical loss history for qualitative or environmental factors if it believes there is evidence that the estimate for expected credit losses should be increased or decreased. The Company records write-offs against the allowance for credit losses if it deems that all or a portion of a loan’s balance is uncollectible. If the Company receives cash in excess of some or all of the amounts it previously wrote off, it records the recovery by increasing the allowance for credit losses. As part of the evaluation of the loan portfolio, the Company assesses the performance of each loan and assigns a risk rating based on the collective evaluation of several factors, including but not limited to: collateral performance relative to underwritten plan, time since origination, current implied and/or re-underwritten LTV ratios, risk inherent in the loan structure and exit plan. Loans are rated “1” through “5,” from the least risk to the greatest risk, in connection with this review. Prior to the implementation of CECL, the Company calculated its allowance for credit losses through the calculation of general and specific reserves. The general reserve, established for loans not determined to be impaired individually, was based on the Company’s loan risk ratings. The Company recorded a general reserve equal to 1.5 % of the aggregate face values of loans with a risk rating of “3,” plus 5.0 % of the aggregate face values of loans with a risk rating of “4.” Loans with a risk rating of “5” were individually measured for impairment to be included in a specific reserve on a quarterly basis. Operating Revenue at Properties Through its investments in real estate, the Company earns revenue associated with rental operations and hotel operations, which are presented in real estate income on the consolidated statements of operations. The Company’s rental operating revenue consists of fixed contractual base rent arising from tenant leases at the Company’s office and student housing properties under operating leases. Revenue is recognized on a straight-line basis over the non-cancelable terms of the related leases. For leases that have fixed and measurable rent escalations, the difference between such rental income earned and the cash rent due under the provisions of the lease is recorded in the Company’s consolidated balance sheets. The Company moves to cash basis operating lease income recognition in the period in which collectability of all lease payments is no longer considered probable. At such time, any uncollectible receivable balance will be written off. Hotel operating revenue consists of amounts derived from hotel operations, including room sales and other hotel revenues. The Company recognizes hotel operating revenue when guest rooms are occupied, services have been provided or fees have been earned. Revenues are recorded net of any sales, occupancy or other taxes collected from customers on behalf of third parties. The following provides additional detail on room revenue and other operating revenue: • Room revenue is recognized when the Company’s hotel satisfies its performance obligation of providing a hotel room. The hotel reservation defines the terms of the agreement including an agreed-upon rate and length of stay. Payment is typically due and paid in full at the end of the stay with some customers prepaying for their rooms prior to the stay. Payments received from a customer prior to arrival are recorded as an advance deposit and are recognized as revenue at the time of occupancy. • Other operating revenue is recognized at the time when the goods or services are provided to the customer or when the performance obligation is satisfied. Payment is due at the time that goods or services are rendered or billed. Investment in Real Estate The Company acquires investments in real estate through direct equity investments and as a result of its lending activities (i.e. through foreclosure or the receipt of the deed-in-lieu of foreclosure on a property). Acquired investments in real estate assets are recorded initially at fair value in accordance with U.S. GAAP. The Company allocates the purchase price of its acquired assets and assumed liabilities based on the relative fair values of the assets acquired and liabilities assumed. The Company accounts for leases that it acquires as operating leases. The Company evaluates whether property obtained as a result of its lending activities should be identified as held for sale. If a property is determined to be held for sale, all of the acquired assets and assumed liabilities will be recorded in property held for sale on the consolidation balance sheet and recorded at the lower of cost or fair value, see the “Assets and Liabilities Held for Sale” section below. Once a property is classified as held for sale, depreciation expense is no longer recorded. Investments in real estate are carried net of accumulated depreciation. The Company depreciates real property, building and tenant improvements and furniture, fixtures, and equipment using the straight-line method over the estimated useful lives of the assets unless the asset is designated as held for sale. The Company amortizes any acquired intangible assets using the straight-line method over the estimated useful lives of the intangible assets. The Company amortizes the value allocated to lease right of use assets and related in-place lease liabilities, when determined to be operating leases, using the straight-line method over the remaining lease term. The value allocated to any associated above or below market lease intangible asset or liability is amortized to lease expense over the remaining lease term. Ordinary repairs and maintenance are expensed as incurred. Costs related to the improvement of the real property are capitalized and depreciated over their useful lives. Costs related to the development and construction of real property are capitalized to Construction in Progress during the period beginning with the commencement of development and ending with the completion of construction. The Company depreciates investments in real estate and amortizes intangible assets over the estimated useful lives of the assets as follows: Category Term Building 35 to 40 years Building improvements 8 to 35 years Site improvements 10 years Tenant improvements Shorter of lease term or expected useful life Furniture, fixtures and equipment 3 to 12 years Right of use assets 7 to 94 years Intangible assets 90 days to 18 years Lease liabilities 7 to 94 years Leases The value of the operating leases are determined through the discounted cash flow method and are recognized on the consolidated balance sheets as offsetting right of use assets and lease liabilities. The operating lease for the Company’s office space is amortized over the lease term, or seven years , using the effective-interest method. The Company’s operating lease for office equipment is amortized over the lease term, or three years , using the straight-line method. Assets and Liabilities Held for Sale The Company classifies long-lived assets or a disposal group to be sold as held for sale in the period in which all of the following criteria are met: • management, having the authority to approve the action, commits to a plan to sell the asset or the disposal group; • the asset or disposal group is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such assets; • an active program to locate a buyer and other actions required to complete the plan to sell the asset or disposal group have been initiated; • the sale of the asset or disposal group is probable, and transfer of the asset or disposal group is expected to qualify for recognition as a completed sale within one year, except if events or circumstances beyond the Company’s control extend the period of time required to sell the asset or disposal group beyond one year; • the asset or disposal group is being actively marketed for sale at a price that is reasonable in relation to its current fair value; and • actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. A long-lived asset or disposal group that is classified as held for sale is initially measured at the lower of its cost or fair value less any costs to sell. Any loss resulting from the transfer of long-lived assets or disposal groups to assets held for sale is recognized in the period in which the held for sale criteria are met. The fair values of assets held for sale are assessed each reporting period and changes in such fair values are reported as an adjustment to the carrying value of the asset or disposal group with an offset to fair value adjustments on financial assets held for sale on the Company’s consolidated statements of operations, to the extent that any subsequent changes in fair value do not exceed the cost basis of the asset or disposal group. Additionally, upon determining that a long-lived asset or disposal group meets the criteria to be classified as held for sale, the Company reports the assets and liabilities of the disposal group, if material, in the line items assets or liabilities held for sale, respectively, on the consolidated balance sheets. Discontinued Operations The results of operations of a component or a group of components of the Company that either has been disposed of or is classified as held for sale is reported in discontinued operations if the disposal represents a strategic shift that has or will have a major effect on the Company’s operations and financial results. Comprehensive Income (Loss) Comprehensive income (loss) for the Company includes net income and the change in net unrealized gains (losses) on available-for-sale securities and derivative instruments that were used to hedge exposure to interest rate fluctuations. Income Taxes The Company operates in such a manner as to qualify as a REIT under the provisions of the Internal Revenue Code of 1986, as amended (the “Code”); therefore, applicable REIT taxable income is included in the taxable income of its shareholders, to the extent distributed by the Company. To maintain REIT status for federal income tax purposes, the Company is generally required to distribute at least 90% of its REIT taxable income to its shareholders as well as comply with certain other qualification requirements as defined under the Code. As a REIT, the Company is not subject to federal corporate income tax to the extent that it distributes 100 % of its REIT taxable income each year. Taxable income, from non-REIT activities managed through the Company’s taxable REIT subsidiaries (“TRSs”), is subject to federal, state and local income taxes. The Company’s TRS’ income taxes are accounted for under the asset and liability method. Under the asset and liability method, deferred income taxes are recognized for the temporary differences between the financial reporting basis and tax basis of assets and liabilities. The Company evaluates the realizability of its deferred tax assets and liabilities and recognizes a valuation allowance if, based on available evidence, it is more likely than not that some or all of its deferred tax assets will not be realized. In evaluating the realizability of the deferred tax asset or liability, the Company will consider the expected future taxable income, existing and projected book to tax differences as well as tax planning strategies. This analysis is inherently subjective, as it is based on forecasted earning and business and economic activity. Changes in estimates of deferred tax asset realizability, if any, are included in income tax (expense) benefit on the consolidated statements of operations. In addition, several of the Company’s foreign TRSs, are organized as exempted companies incorporated with limited liability under the laws of the Cayman Islands. Despite their status as TRSs, they generally will not be subject to corporate tax on their earnings and no provision for income taxes is required. However, because they are either controlled foreign corporations or passive foreign investment companies (in which the Company has made a Qualified Electing Fund election), the Company will generally be required to include its share of current taxable income from the foreign TRSs in its calculation of REIT taxable income. The Company accounts for taxes assessed by a governmental authority that is directly imposed on a revenue-producing transaction (e.g., sales, use, value added) on a net (excluded from revenue) basis. The Company established a full valuation allowance against its net deferred tax asset that was tax effected at $ 21.2 million and $ 21.4 million, at December 31, 2022 and 2021, respectively, as the Company believed it was more likely than not that all of the deferred tax assets would not be realized. This assessment was based on the Company’s cumulative historical losses and uncertainties as to the amount of taxable income that would be generated in future years in its TRSs. The Company evaluates and recognizes tax positions only if it is more likely than not that the position will be sustained upon examination by the appropriate taxing authority. A tax position that meets this threshold is measured as the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement. The Company classifies any tax penalties as other operating expenses and any interest as interest expense. The Company does not have any unrecognized tax benefits that would affect the Company’s financial position. Stock Based Compensation Issuances of restricted stock and options are initially measured at fair value on the grant date and expensed monthly on a straight-line basis over the service period to equity compensation expense on the consolidated statements of operations, with a corresponding entry to additional paid-in capital on the consolidated balance sheets. In accordance with GAAP, the fair value of all unvested issuances of restricted stock and options is not remeasured after the initial grant date. Earnings Per Share The Company presents both basic and diluted earnings per share (“EPS”). Basic EPS excludes dilution and is computed by dividing net income (loss) allocable to common shares by the weighted average number of shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock, where such exercise or conversion would result in a lower EPS amount. Fair Value Measurements In analyzing the fair value of its investments accounted for on a fair value basis, the Company uses the fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The Company determines fair value based on quoted prices when available or, if quoted prices are not available, through the use of alternative approaches, such as discounting the expected cash flows using market interest rates commensurate with the credit quality and duration of the investment. The hierarchy defines three levels of inputs that may be used to measure fair value: Level 1 - Quoted prices for identical instruments in active markets. Level 2 - Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that ar |
VARIABLE INTEREST ENTITIES
VARIABLE INTEREST ENTITIES | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
VARIABLE INTEREST ENTITIES | NOTE 3 - VARIABLE INTEREST ENTITIES The Company has evaluated its loans, investments in unconsolidated entities, liabilities to subsidiary trusts issuing preferred securities (consisting of unsecured junior subordinated notes), securitizations, guarantees and other financial contracts in order to determine if they are variable interests in VIEs. The Company regularly monitors these legal interests and contracts and, to the extent it has determined that it has a variable interest, analyzes the related entity for potential consolidation. Consolidated VIEs (the Company is the primary beneficiary) Based on management’s analysis, the Company was the primary beneficiary of five and seven VIEs at December 31, 2022 and 2021, respectively (collectively, the “Consolidated VIEs”). The Consolidated VIEs are CRE securitizations and CDOs that were formed on behalf of the Company to invest in real estate-related securities, commercial mortgage-backed securities (“CMBS”), syndicated corporate loans and corporate bonds were financed by the issuance of debt securities. By financing these assets with long-term borrowings through the issuance of debt securities, the Company seeks to generate attractive risk-adjusted equity returns and to match the term of its assets and liabilities. The primary beneficiary determination for each of these VIEs was made at each VIE’s inception and is continually assessed. In April 2022, the Company contributed an initial investment of $ 13.0 million for a 72.1 % interest in Charles Street-ACRES FSU Student Venture, LLC (the “FSU Student Venture”). The FSU Student Venture, a joint venture between the Company and two unrelated third parties, was formed for the purpose of developing a student housing project. The FSU Student Venture was determined not to be a VIE as there was sufficient equity at risk, it does not have disproportionate voting rights and its members all have the following characteristics: (1) the power to direct activities, (2) the obligation to absorb losses and (3) the right to receive residual returns. However, the Company consolidated the FSU Student Venture due to its 72.1 % interest that provides the Company with unilateral control over all major decisions of the joint venture. The portion of the joint venture that the Company does not own is presented as non-controlling interest at and for the periods presented in the Company’s consolidated financial statements. The Company has exposure to losses on its securitizations to the extent of its investments in the subordinated debt and preferred equity of each securitization. The Company is entitled to receive payments of principal and interest on the debt securities it holds and, to the extent revenues exceed debt service requirements and other expenses of the securitizations, distributions with respect to its preferred equity interests. As a result of consolidation, the debt and equity interests the Company holds in these securitizations have been eliminated, and the Company’s consolidated balance sheets reflect the assets held, debt issued by the securitizations to third parties and any accrued payables to third parties. The Company’s operating results and cash flows include the gross amounts related to the securitizations’ assets and liabilities as opposed to the Company’s net economic interests in the securitizations. Assets and liabilities related to the securitizations are disclosed, in the aggregate, on the Company’s consolidated balance sheets. For a discussion of the debt issued through the securitizations see Note 12. Creditors of the Company’s Consolidated VIEs have no recourse to the general credit of the Company, nor to each other. During the years ended December 31, 2022, 2021 and 2020, the Company did not provide any financial support to any of its VIEs nor does it have any requirement to do so, although it may choose to do so in the future to maximize future cash flows on such investments by the Company. There are no explicit arrangements that obligate the Company to provide financial support to any of its Consolidated VIEs. The following table shows the classification and carrying values of assets and liabilities of the Company’s Consolidated VIEs at December 31, 2022 (in thousands): CRE Securitizations Other Total ASSETS Restricted cash $ 37,872 $ 308 $ 38,180 Accrued interest receivable 8,184 — 8,184 CRE loans, pledged as collateral (1) 1,456,649 — 1,456,649 Other assets 63 56 119 Total assets (2) $ 1,502,768 $ 364 $ 1,503,132 LIABILITIES Accounts payable and other liabilities $ 93 $ — $ 93 Accrued interest payable 3,083 — 3,083 Borrowings 1,233,556 — 1,233,556 Total liabilities $ 1,236,732 $ — $ 1,236,732 (1) Excludes allowance for credit losses. (2) Assets of each of the Consolidated VIEs may only be used to settle the obligations of each respective VIE. Unconsolidated VIEs (the Company is not the primary beneficiary, but has a variable interest) Based on management’s analysis, the Company is not the primary beneficiary of the VIEs discussed below since it does not have both (i) the power to direct the activities that most significantly impact the VIE’s economic performance and (ii) the obligation to absorb the losses of the VIE or the right to receive the benefits from the VIE, which could be significant to the VIE. Accordingly, the following VIEs are not consolidated in the Company’s financial statements at December 31, 2022. The Company continuously reassesses whether it is deemed to be the primary beneficiary of its unconsolidated VIEs. The Company’s maximum exposure to risk for each of these unconsolidated VIEs is set forth in the “Maximum Exposure to Loss” column in the table below. Unsecured Junior Subordinated Debentures The Company has a 100 % interest in the common shares of Resource Capital Trust I (“RCT I”) and RCC Trust II (“RCT II”), respectively, with a value of $ 1.5 million in the aggregate, or 3.0 % of each trust, at December 31, 2022. RCT I and RCT II were formed for the purposes of providing debt financing to the Company. The Company completed a qualitative analysis to determine whether it is the primary beneficiary of each of the trusts and determined that it was not the primary beneficiary of either trust because it does not have the power to direct the activities most significant to the trusts, which include the collection of principal and interest through servicing rights. Accordingly, neither trust is consolidated into the Company’s consolidated financial statements. The Company records its investments in RCT I and RCT II’s common shares of $ 774,000 each as investments in unconsolidated entities using the cost method, recording dividend income when declared by RCT I and RCT II. The trusts each hold subordinated debentures, for which the Company is the obligor, in the amount of $ 25.8 million for each of RCT I and RCT II. The debentures were funded by the issuance of trust preferred securities of RCT I and RCT II. The following table shows the classification, carrying value and maximum exposure to loss with respect to the Company’s unconsolidated VIEs at December 31, 2022 (in thousands): Unsecured Junior Subordinated Debentures Maximum Exposure to Loss ASSETS Accrued interest receivable $ 11 $ — Investments in unconsolidated entities 1,548 $ 1,548 Total assets 1,559 LIABILITIES Accrued interest payable 378 N/A Borrowings 51,548 N/A Total liabilities 51,926 Net (liability) asset $ ( 50,367 ) At December 31, 2022 , there were no explicit arrangements or implicit variable interests that could require the Company to provide financial support to any of its unconsolidated VIEs. |
SUPPLEMENTAL CASH FLOW INFORMAT
SUPPLEMENTAL CASH FLOW INFORMATION | 12 Months Ended |
Dec. 31, 2022 | |
Supplemental Cash Flow Elements [Abstract] | |
SUPPLEMENTAL CASH FLOW INFORMATION | NOTE 4 - SUPPLEMENTAL CASH FLOW INFORMATION The following table summarizes the Company’s supplemental disclosure of cash flow information (in thousands): Years Ended December 31, 2022 2021 2020 Supplemental cash flows: Interest expense paid in cash $ 70,025 $ 42,345 $ 44,677 Income taxes paid in cash 228 — — Non-cash operating activities include the following: Acquisition of below-market lease intangible related to the receipt of deed in lieu of foreclosure $ — $ — $ ( 2,490 ) Acquisition of right of use asset related to the receipt of deed in lieu of foreclosure — — ( 3,113 ) Assumption of operating lease related to the receipt of deed in lieu of foreclosure — — 3,113 Acquisition of other right of use assets ( 299 ) ( 479 ) — Assumption of other operating lease liabilities 299 479 — Non-cash investing activities include the following: Investment in property held for sale related to the receipt of deed in lieu of foreclosure $ ( 14,299 ) $ ( 17,600 ) $ — Proceeds from the relinquishment of investment securities available-for-sale — — 369,873 Proceeds from the receipt of deed in lieu of foreclosure on loan 14,299 17,600 39,750 Investment in real estate assets related to the receipt of deed in lieu of foreclosure — — ( 33,924 ) Investment in intangible assets related to the receipt of deed in lieu of foreclosure — — ( 3,336 ) Non-cash financing activities include the following: Repayment of repurchase agreements from the relinquishment of investment securities available-for-sale $ — $ — $ ( 369,873 ) Distributions on preferred stock accrued but not paid 3,262 3,262 1,725 |
RESTRICTED CASH
RESTRICTED CASH | 12 Months Ended |
Dec. 31, 2022 | |
Cash and Cash Equivalents [Abstract] | |
RESTRICTED CASH | NOTE 5 - RESTRICTED CASH The following table summarizes the Company’s restricted cash (in thousands): December 31, 2022 2021 Restricted cash: Cash held by consolidated CRE securitizations, CDOs and CLOs $ 38,180 $ 248,071 Restricted cash held in escrow for tax payments 274 — Restricted cash pledged with minimum reserve balance requirements 125 360 Total $ 38,579 $ 248,431 |
LOANS
LOANS | 12 Months Ended |
Dec. 31, 2022 | |
Loans Held For Investment [Abstract] | |
LOANS | NOTE 6 - LOANS The following is a summary of the Company’s loans (dollars in thousands, except amounts in footnotes): Description Quantity Principal Unamortized (Discount) Premium, net (1) Amortized Cost Allowance for Credit Losses Carrying Value Contractual Interest Rates (2) Maturity Dates (3)(4) At December 31, 2022: CRE loans held for investment: Whole loans (5)(6) 81 $ 2,065,504 $ ( 12,614 ) $ 2,052,890 $ ( 14,103 ) $ 2,038,787 1M BR plus 2.85 % to 1M BR plus 8.50 % January 2023 to July 2026 Mezzanine loan (5) 1 4,700 — 4,700 ( 4,700 ) — 10.00 % June 2028 Total CRE loans held for investment $ 2,070,204 $ ( 12,614 ) $ 2,057,590 $ ( 18,803 ) $ 2,038,787 At December 31, 2021: CRE loans held for investment: Whole loans (5)(6) 93 $ 1,891,795 $ ( 13,944 ) $ 1,877,851 $ ( 8,550 ) $ 1,869,301 1M BR plus 2.70 % to 1M BR plus 8.5 0% January 2022 to September 2025 Mezzanine loan (5) 1 4,700 — 4,700 ( 255 ) 4,445 10.00 % June 2028 Total CRE loans held for investment $ 1,896,495 $ ( 13,944 ) $ 1,882,551 $ ( 8,805 ) $ 1,873,746 (1) Amounts include unamortized loan origination fees of $ 12.3 million and $ 13.6 million and deferred amendment fees of $ 308,000 and $ 307,000 at December 31, 2022 and 2021, respectively. Additionally, the amounts include unamortized loan acquisition costs of $ 7,300 at December 31, 2021. At December 31, 2022, the Company had no unamortized loan acquisition costs. (2) Weighted-average one-month benchmark rate (“BR”) floors were 0.68 % and 0.75 % at December 31, 2022 and 2021, respectively. Benchmark rates comprise one-month LIBOR or one-month Term SOFR. At both December 31, 2022 and 2021, all but one of the Company’s floating-rate whole loans had one-month benchmark floors. (3) Maturity dates exclude contractual extension options, subject to the satisfaction of certain terms, that may be available to the borrowers. (4) Maturity dates exclude three whole loans, with amortized costs of $ 51.6 million and $ 27.9 million , in maturity default at December 31, 2022 and 2021, respectively. (5) Substantially all loans are pledged as collateral under various borrowings at December 31, 2022 and 2021. (6) CRE whole loans had $ 158.2 million and $ 157.6 million in unfunded loan commitments at December 31, 2022 and 2021 , respectively. These unfunded loan commitments are advanced as the borrowers formally request additional funding and meet certain benchmarks, as permitted under the applicable loan agreement, and any necessary approvals have been obtained. The following is a summary of the contractual maturities of the Company’s CRE loans held for investment, at amortized cost (in thousands, except amounts in the footnotes): Description 2023 2024 2025 and Thereafter Total At December 31, 2022: Whole loans (1) $ 268,120 $ 882,175 $ 851,031 $ 2,001,326 Mezzanine loan — — 4,700 4,700 Total CRE loans (2) $ 268,120 $ 882,175 $ 855,731 $ 2,006,026 Description 2022 2023 2024 and Thereafter Total At December 31, 2021: Whole loans (1) $ 377,024 $ 230,872 $ 1,242,013 $ 1,849,909 Mezzanine loan — — 4,700 4,700 Total CRE loans (2) $ 377,024 $ 230,872 $ 1,246,713 $ 1,854,609 (1) Maturity dates exclude three whole loans with amortized costs of $ 51.6 million and $ 27.9 million in maturity default at December 31, 2022 and 2021, respectively. (2) At December 31, 2022 , the amortized costs of the CRE whole loans, summarized by contractual maturity assuming full exercise of the extension options, were $ 113.8 million, $ 68.6 million and $ 1.8 billion in 2023, 2024 and 2025 and thereafter, respectively. At December 31, 2021 , the amortized costs of the CRE whole loans, summarized by contractual maturity assuming full exercise of the extension options, were $ 52.0 million, $ 127.6 million and $ 1.7 billion in 2022, 2023 and 2024 and thereafter, respectively. At December 31, 2022, 23.2 % , 21.5 % and 16.2 % of the Company’s CRE loan portfolio was concentrated in the Southwest, Southeast and Mountain regions, respectively, based on carrying value, as defined by the NCREIF. At December 31, 2021 , 28.4 %, 18.4 %, and 15.2 % of the Company’s CRE loan portfolio was concentrated in the Southeast, Southwest, and Mid-Atlantic regions, respectively, based on carrying value. No single loan or investment represented more than 10% of the Company’s total assets and no single investment group generated over 10% of its total revenue. Principal Paydowns Receivable Principal paydowns receivable represents loan principal payments that have been received by the Company’s servicers and trustees but have not been remitted to the Company. At December 31, 2022 , the Company had no loan principal paydowns receivable. At December 31, 2021 , the Company had $ 14.9 million of loan principal paydowns receivable, all of which was received by the Company during January 2022. |
FINANCING RECEIVABLES
FINANCING RECEIVABLES | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
FINANCING RECEIVABLES | NOTE 7 - FINANCING RECEIVABLES The following tables show the activity in the allowance for credit losses for the years ended December 31, 2022 and 2021 (in thousands): Years Ended December 31, 2022 2021 Allowance for credit losses at beginning of year $ 8,805 $ 34,310 Provision for (reversal of) credit losses 12,295 ( 21,262 ) Charge offs ( 2,297 ) ( 4,243 ) Allowance for credit losses at end of year $ 18,803 $ 8,805 During the year ended December 31, 2020, higher expected unemployment and increased volatility in CRE asset pricing and liquidity as a result of the COVID-19 pandemic significantly impacted assumptions in the Company’s CECL estimates and resulted in a net provision for credit losses of $ 30.8 million. However, the discovery and distribution of vaccines and other treatments for COVID-19 led to a recovery of the global economy and markets worldwide, which resulted in a net reversal of credit losses of $ 21.3 million during the year ended December 31, 2021. The ensuing macroeconomic factors, including expected increases in inflation, short-term interest rates that collateralize the Company's loans, energy prices and continued global supply chain dislocation trending negative, compounded by an increase in portfolio credit risk indicated in property-level cash flows, resulted in a net provision of expected credit losses of $ 12.3 million during the year ended December 31, 2022. In addition to the Company’s general estimate of credit losses, the Company may also be required to individually evaluate collateral-dependent loans for credit losses if it has determined that foreclosure or sale of the loan or the underlying collateral is probable. At December 31, 2022 and 2021, $ 4.7 million and $ 2.3 million, respectively, of the Company’s allowance for credit losses resulted from collateral-dependent loans that were individually evaluated for credit losses, details of which follow: During the year ended December 31, 2022, the Company individually evaluated the following loans: • One office mezzanine loan in the Northeast region with a principal balance of $ 4.7 million. The Company fully reserved this loan in the fourth quarter of 2022 . • One retail loan in the Northeast region and one office loan in the Southwest region with principal balances of $ 8.0 million and $ 20.7 million, respectively, for which foreclosure was determined to be probable. Each loan had an as-is appraised value in excess of its principal and interest balances, and, as such, had no CECL allowance at December 31, 2022. During the year ended December 31, 2021, the Company individually evaluated the following loans: • An office loan in the East North Central region with a $ 19.9 million principal balance. The Company recorded a $ 2.3 million CECL allowance in the third quarter of 2021 to reflect the as-is appraised value of the property of $ 17.6 million. Upon receipt of the property in full satisfaction of the loan in the fourth quarter of 2021, the Company charged off the $ 2.3 million CECL allowance and recorded the property as a property held for sale on its consolidated balance sheets at its fair value of $ 17.6 million. (see Note 8). • A hotel loan in the Northeast region with a $ 9.3 million principal balance. The Company recorded a $ 1.8 million CECL allowance in the third quarter of 2021 that reflected the Company’s estimate of fair value less costs of sale of $ 7.5 million at September 30, 2021. Upon sale of the loan in November 2021, the Company received proceeds of $ 7.6 million, net of costs of sale, and charged off the remaining $ 1.7 million CECL allowance. • A retail loan in the Pacific region with an $ 11.5 million principal balance. At December 31, 2021, the Company had a recorded $ 2.3 million CECL allowance that reflected the loss taken on the loan as a result of a discounted payoff received on the loan in January 2022 in full satisfaction of the loan. • A hotel loan in the East North Central region with an $ 8.4 million principal balance. The Company received payment in full on this loan in January 2022; and, as such, there was no CECL allowance recorded at December 31, 2021. • A hotel loan in the Northeast region with a $ 14.0 million principal balance. The hotel loan had an as-is appraised value in excess of its principal balance, and, as such, had no CECL allowance at December 31, 2021. During the year ended December 31, 2020, the Company individually evaluated the following loans: • A hotel loan in the Northeast region with a $ 37.9 million principal balance for which foreclosure was deemed probable. In November 2020, the Company received the deed-in-lieu of foreclosure on the property. In conjunction with the receipt of the deed, the Company obtained an updated appraisal that indicated an as-is appraised value of $ 39.8 million (see Note 8 ) and consequently reversed the then-outstanding $ 8.0 million CECL allowance and recorded the property as an investment in real estate on the consolidated balance sheets at its appraised value. • A office loan in the East North Central region with a $ 19.9 million principal balance and a hotel loan in the Northeast region with a $ 14.0 million par balance for which foreclosure was determined to be probable. The Company determined that these loans had CECL allowances of $ 1.9 million and $ 0 , respectively, calculated as the difference between the as-is appraised values and the loans’ amortized costs. In September 2022, the Company sold the office property for $ 19.3 million with selling costs of $ 532,000 , resulting in a gain on sale of $ 1.9 million. In February 2023, the Company sold the hotel property for $ 15.1 million (see Note 8). In June 2020, the Company sold one CRE whole loan note for $ 17.4 million, which resulted in a realized loss of $ 1.0 million recorded in the provision for credit losses during the year ended December 31, 2020. Credit quality indicators Commercial Real Estate Loans CRE loans are collateralized by a diversified mix of real estate properties and are assessed for credit quality based on the collective evaluation of several factors, including but not limited to: collateral performance relative to underwritten plan, time since origination, current implied and/or re-underwritten LTV ratios, loan structure and exit plan. Depending on the loan’s performance against these various factors, loans are rated on a scale from 1 to 5, with loans rated 1 representing loans with the highest credit quality and loans rated 5 representing loans with the lowest credit quality. The factors evaluated provide general criteria to monitor credit migration in the Company’s loan portfolio; as such, a loan’s rating may improve or worsen, depending on new information received. The criteria set forth below should be used as general guidelines and, therefore, not every loan will have all of the characteristics described in each category below. Risk Rating Risk Characteristics 1 Property performance has surpassed underwritten expectations. Occupancy is stabilized, the property has had a history of consistently high occupancy, and the property has a diverse and high quality tenant mix. 2 Property performance is consistent with underwritten expectations and covenants and performance criteria are being met or exceeded. Occupancy is stabilized, near stabilized or is on track with underwriting. 3 Property performance lags behind underwritten expectations. Occupancy is not stabilized and the property has some tenancy rollover. 4 Property performance significantly lags behind underwritten expectations. Performance criteria and loan covenants have required occasional waivers. Occupancy is not stabilized and the property has a large amount of tenancy rollover. 5 Property performance is significantly worse than underwritten expectations. The loan is not in compliance with loan covenants and performance criteria and may be in default. Expected sale proceeds would not be sufficient to pay off the loan at maturity. The property has a material vacancy rate and significant rollover of remaining tenants. An updated appraisal is required upon designation and updated on an as-needed basis. All CRE loans are evaluated for any credit deterioration by debt asset management and certain finance personnel on at least a quarterly basis. Mezzanine loans may experience greater credit risks due to their nature as subordinated investments. For the purpose of calculating the quarterly provision for credit losses under CECL, the Company pools CRE loans based on the underlying collateral property type and utilizes a probability of default and loss given default methodology for approximately one year after which it immediately reverts to a historical mean loss ratio. Credit risk profiles of CRE loans at amortized cost were as follows (in thousands, except amounts in the footnote): Rating 1 Rating 2 Rating 3 Rating 4 Rating 5 Total (1) At December 31, 2022: Whole loans, floating-rate $ — $ 1,635,376 309,491 $ 85,226 $ 22,797 $ 2,052,890 Mezzanine loan — — — — 4,700 4,700 Total $ — $ 1,635,376 $ 309,491 $ 85,226 $ 27,497 $ 2,057,590 At December 31, 2021: Whole loans, floating-rate $ — $ 1,456,330 $ 273,078 $ 123,762 $ 24,681 $ 1,877,851 Mezzanine loan — — — 4,700 — 4,700 Total $ — $ 1,456,330 $ 273,078 $ 128,462 $ 24,681 $ 1,882,551 (1) The total amortized cost of CRE loans excluded accrued interest receivable of $ 11.9 million and $ 6.1 million at December 31, 2022 and 2021, respectively. Credit risk profiles of CRE loans by origination year at amortized cost were as follows (in thousands, except amounts in footnotes): 2022 2021 2020 2019 2018 Prior Total (1) At December 31, 2022: Whole loans, floating-rate: (2) Rating 2 $ 526,606 $ 1,003,060 $ 64,944 $ 26,977 $ 13,789 $ — $ 1,635,376 Rating 3 192,490 44,657 27,881 44,463 — 309,491 Rating 4 — — — 20,742 64,484 — 85,226 Rating 5 — — — 22,797 — — 22,797 Total whole loans, floating-rate 526,606 1,195,550 109,601 98,397 122,736 — 2,052,890 Mezzanine loan (rating 5) — — — — 4,700 — 4,700 Total $ 526,606 $ 1,195,550 $ 109,601 $ 98,397 $ 127,436 $ — $ 2,057,590 2021 2020 2019 2018 2017 Prior Total (1) At December 31, 2021: Whole loans, floating-rate: (2) Rating 2 $ 1,230,810 $ 150,513 $ 55,510 $ 19,497 $ — $ — $ 1,456,330 Rating 3 33,781 24,604 136,305 60,888 — 17,500 273,078 Rating 4 — — 28,446 86,096 — 9,220 123,762 Rating 5 — — 22,385 — — 2,296 24,681 Total whole loans, floating-rate 1,264,591 175,117 242,646 166,481 — 29,016 1,877,851 Mezzanine loan (rating 4) — — — 4,700 — — 4,700 Total $ 1,264,591 $ 175,117 $ 242,646 $ 171,181 $ — $ 29,016 $ 1,882,551 (1) The total amortized cost of CRE loans excluded accrued interest receivable of $ 11.9 million and $ 6.1 million at December 31, 2022 and 2021, respectively. (2) Acquired CRE whole loans are grouped within each loan’s year of issuance. The Company had one additional mezzanine loan that was included in assets held for sale, and that loan had no carrying value at December 31, 2022 and 2021 . Loan Portfolios Aging Analysis The following table presents the CRE loan portfolio aging analysis as of the dates indicated for CRE loans at amortized cost (in thousands, except amounts in footnotes): 30-59 Days 60-89 Days Greater than 90 (1) Total Past Due Current (2) Total Loans Receivable (3) Total Loans > 90 Days and Accruing At December 31, 2022: Whole loans, floating-rate $ — $ — $ 28,767 $ 28,767 $ 2,024,123 $ 2,052,890 $ — Mezzanine loan (4) — — — — 4,700 4,700 — Total $ — $ — $ 28,767 $ 28,767 $ 2,028,823 $ 2,057,590 $ — At December 31, 2021: Whole loans, floating-rate $ — $ — $ 19,916 $ 19,916 $ 1,857,935 $ 1,877,851 $ 19,916 Mezzanine loan — — — — 4,700 4,700 — Total $ — $ — $ 19,916 $ 19,916 $ 1,862,635 $ 1,882,551 $ 19,916 (1) During the years ended December 31, 2022, 2021 and 2020 , the Company recognized interest income of $ 1.5 million, $ 2.0 million and $ 2.0 million, respectively, on two loans with principal payments past due greater than 90 days at December 31, 2022. (2) Includes one whole loan with total amortized costs of $ 22.8 million and $ 8.0 million in maturity default at December 31, 2022 and 2021, respectively. (3) The total amortized cost of CRE loans excluded accrued interest receivable of $ 11.9 million and $ 6.1 million at December 31, 2022 and 2021, respectively. (4) Fully reserved at December 31, 2022. At December 31, 2022 and 2021 , the Company had three whole loans in maturity default with total amortized costs of $ 51.6 million and $ 27.9 million, respectively. In July 2022, the Company received the deed-in-lieu of foreclosure on a hotel property in the Northeast region that collateralized a whole loan with an amortized cost of $ 14.0 million and that was in maturity default at June 30, 2022. In February 2023, the Company sold the hotel property in the Northeast region for $ 15.1 million (see Note 8). During the year ended December 31, 2021, the Company received the deed-in-lieu of foreclosure on an office prop erty in the East North Central region that collateralized a whole loan that was in maturity default at December 31, 2020 with an amortized cost of $ 19.9 million. In September 2022, the Company sold the office property in the East North Central region f or $ 19.3 million with selling costs of $ 532,000 , resulting in a gain on sale of $ 1.9 million. (see Note 8). At December 31, 2022, one whole loan in maturity default, with a total amortized cost of $ 8.0 million, was past due on interest payments. At December 31, 2021, three whole loans, including two loans that had maturity defaults, with a total amortized cost of $ 30.4 million were past due on interest payments. During the year ended December 31, 2022, two whole loans in maturity default at December 31, 2021, including one loan that was past due on interest payments at December 31, 2021, paid off principal of $ 17.6 million. The payoff on one loan was the result of a discounted payoff and resulted in a realized loss of $ 2.3 million for which a CECL allowance was established as of December 31, 2021. Troubled-Debt Restructurings During the year ended December 31, 2022 , the Company entered into 12 agreements that extended eight loans by a weighted average period of four months and, in certain cases, modified certain other loan terms. One formerly forborne loan was in maturity default at December 31, 2022. No loan modifications during the years ended December 31, 2022 or 2021 resulted in TDRs. |
INVESTMENTS IN REAL ESTATE AND
INVESTMENTS IN REAL ESTATE AND OTHER ACQUIRED ASSETS AND ASSUMED LIABILITIES | 12 Months Ended |
Dec. 31, 2022 | |
Investment In Real Estate And Other Acquired Assets And Assumed Liabilities [Abstract] | |
Investments In Real Estate And Other Acquired Assets And Assumed Liabilities | NOTE 8 - INVESTMENTS IN REAL ESTATE AND OTHER ACQUIRED ASSETS AND ASSUMED LIABILITIES At December 31, 2022, the Company held investments in six real estate properties, four of which are included in Investments in Real Estate, and two of which are included in Properties held for Sale on the consolidated balance sheets. During the year ended December 31, 2022 , the Company acquired two real estate properties through direct equity investments. The Company determined that the acquisition of the two properties should be accounted for as asset acquisitions. The combined acquisition-date fair value of $ 51.6 million was determined using third-party valuations. In September 2022, the Company sold an office property in the East North Central region that it previously designated as a property held for sale. The office property sold for $ 19.3 million with selling costs of approximately $ 532,000 , resulting in a gain on sale of $ 1.9 million. In July 2022, the Company received the deed-in-lieu of foreclosure on a hotel property in the Northeast region. The Company determined that the acquisition of the property should be accounted for as an asset acquisition, and the acquisition-date fair value of $ 14.3 million was determined using a third-party valuation. The carrying value of the property was $ 13.5 million at December 31, 2022 and was reported as property held for sale on the consolidated balance sheets. There was no gain or loss recognized on conversion of the loan to property held for sale. In February 2023, the property was sold for $ 15.1 million and the Company expects to book a modest gain on sale in the first quarter of 2023. In September 2022, the Company reclassified another hotel property in the Northeast region with a carrying value of $ 36.9 million to property held for sale, which the Company had received via deed-in-lieu of foreclosure in November 2020. The following table summarizes the acquisition date values of acquired assets and assumed liabilities during the year ended December 31, 2022 (in thousands): Investments in real estate, equity: Assets acquired: Land $ 16,327 Building 65,488 Building and tenant improvements 577 Personal property 4,402 Investments in real estate 86,794 Right of use assets 19,664 Cash and other assets 2,117 Intangible assets 9,748 Total 118,323 Liabilities assumed: Mortgage payable 18,089 Operating leases 43,260 Other liabilities 311 Subtotal 61,660 Fair value of net assets acquired 56,663 Less: Non-controlling interest 5,036 Investments in real estate from lending activities: Property held for sale 14,299 Total fair value at acquisition of net assets acquired $ 65,926 The following table summarizes the book value of the Company’s acquired assets and assumed liabilities (in thousands, except amounts in the footnotes): December 31, 2022 December 31, 2021 Cost Basis Accumulated Depreciation & Amortization Carrying Value Cost Basis Accumulated Depreciation & Amortization Carrying Value Assets acquired: Investments in real estate, equity: Investments in real estate (1) $ 123,219 $ ( 2,251 ) $ 120,968 $ 27,065 $ ( 191 ) $ 26,874 Right of use assets (2)(3) 19,664 ( 205 ) 19,459 — — — Intangible assets (4) 11,474 ( 2,594 ) 8,880 1,726 ( 806 ) 920 Subtotal 154,357 ( 5,050 ) 149,307 28,791 ( 997 ) 27,794 Investments in real estate from lending activities: Investment in real estate (5) — — — 34,124 ( 1,689 ) 32,435 Properties held for sale (6) 53,769 — 53,769 17,846 — 17,846 Right of use assets (3)(7) — — — 5,603 ( 95 ) 5,508 Intangible assets (8) — — — 3,337 ( 380 ) 2,957 Subtotal 53,769 — 53,769 60,910 ( 2,164 ) 58,746 Total 208,126 ( 5,050 ) 203,076 89,701 ( 3,161 ) 86,540 Liabilities assumed: Investments in real estate, equity: Mortgage payable 18,089 155 18,244 — — — Other liabilities 247 ( 183 ) 64 247 ( 78 ) 169 Lease liabilities (3)(9) 43,260 ( 393 ) 42,867 — — — Subtotal 61,596 ( 421 ) 61,175 247 ( 78 ) 169 Investments in real estate from lending activities: Liabilities held for sale 3,025 — 3,025 3,113 ( 53 ) 3,060 Total 64,621 ( 421 ) 64,200 3,360 ( 131 ) 3,229 Total net investments in real estate and properties held for sale (10) $ 143,505 $ 138,876 $ 86,341 $ 83,311 (1) Includes $ 38.4 million and $ 22.4 million of land, which is not depreciable, at December 31, 2022 and 2021, respectively. (2) Includes a right of use associated with an acquired ground lease of $ 42.4 million accounted for as an operating lease, an above-market lease intangible asset of $ 19.0 million and a customer list intangible of $ 402,000 at December 31, 2022. Amortization of the above-market lease intangible is booked to real estate expenses on the consolidated statements of operations. (3) Refer to Note 9 for additional information on the Company’s remaining operating leases. (4) Carrying value includes $ 42,000 and $ 819,000 of an acquired in-place lease intangible asset and $ 39,000 and $ 101,000 of an acquired leasing commission intangible asset at December 31, 2022 and 2021, respectively. In 2022, investments in real estate acquired resulted in acquisitions of intangible assets. Carrying value of these assets at December 31, 2022 included a management contract at $ 3.1 million, franchise intangible of $ 5.3 million and a customer list value of $ 427,000 . (5) Includes $ 129,000 of building renovations assets at carrying value at December 31, 2021 made subsequent to the date of acquisition of a property. (6) At December 31, 2022, property held for sale includes two properties originally acquired in November 2020 and July 2022. At December 31, 2021, there was one property held for sale that was acquired in October 2021 and that was subsequently sold in September 2022. (7) Includes a right of use asset associated with an acquired ground lease of $ 3.1 million accounted for as an operating lease and a below-market lease intangible asset of $ 2.4 million at December 31, 2021. At December 31, 2022, these were reclassified to properties held for sale on the consolidated balance sheets. (8) Carrying value includes franchise agreement intangible assets of $ 2.6 million and a customer list intangible asset of $ 311,000 at December 31, 2021. At December 31, 2022, these intangible assets were reclassified to properties held for sale on the consolidated balance sheets. (9) Includes one ground lease at a hotel property with a remaining term of 93 years . Lease expenses for this liability for the year ended December 31, 2022 were $ 1.1 million. (10) Excludes items of working capital, either acquired or assumed. The right of use assets and respective lease liabilities comprise the following two acquired ground leases determined to be operating leases: • The first ground lease has an associated below-market lease intangible asset. The payments on the ground lease consist of air rights rent, retail rent and parking rent, the amounts of which are specifically determined in the executed lease agreement and subsequently increased based on the increase of the consumer price index over a specified number of periods. The Company acquired the original 99-year lease with 66 years remaining. At December 31, 2022, 64 years remain in its term. The Company recorded lease expense of $ 378,000 for the year ended December 31, 2022. The Company recorded lease expense of $ 368,000 for the year ended December 31, 2021. The Company recorded offsetting amortization and accretion on its ground lease right of use assets and lease liabilities of $ 35,000 and $ 47,000 during the years ended December 31, 2022 and 2021, respectively. • The second ground lease has an associated above-market lease intangible liability. The ground lease confers the Company the right to use the land on which its hotel operates, and the ground lease payments increase 3.00 % per year until 2116. The Company acquired the original 99-year lease with 94 years remaining. At December 31, 2022, 93 years remain in its term. The Company recorded lease payments of $ 1.3 million for the year ended December 31, 2022. The Company recorded amortization of $ 153,000 during the year ended December 31, 2022 related to the right of use asset and accretion of $ 341,000 during the year ended December 31, 2022 related to its ground lease liability. During the years ended December 31, 2022, 2021 and 2020 , the Company recorded amortization expense of $ 2.1 million, $ 1.2 million and $ 47,000 , respectively, on its intangible assets. The Company expects to record amortization expense of $ 1.3 million, $ 1.2 million, $ 1.1 million, $ 1.0 million and $ 1.0 million during the 2023, 2024, 2025, 2026 and 2027 fiscal years, respectively, on its intangible assets. |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
LEASES | NOTE 9 - LEASES In addition to the ground leases discussed in Note 8 , the Company has operating leases for office space and office equipment. The leases have terms that expire between January 2024 and September 2029 . The leases on the office space and office equipment contain options for early termination granted to the Company and the lessor. Lease payments are determined as follows: • Office space: payments are made on a fixed schedule, escalating annually, and include the Company’s responsibility for a percentage of increases in the building’s property taxes and operating expenses over the base year. • Office equipment: payments are made on a fixed schedule. The following table summarizes the Company’s operating leases (in thousands): December 31, 2022 December 31, 2021 Operating Leases: Right of use assets $ 822 $ 443 Lease liabilities $ ( 828 ) $ ( 477 ) Weighted average remaining lease term: 6.7 years 6.6 years Weighted average discount rate (1) : 8.71 % 10.65 % (1) The market discount rate is used, when readily determinable, in calculating the present value of lease payments for the operating lease liability. Otherwise, the incremental borrowing rate on the commencement date is used. The following table summarizes the Company’s operating lease costs and cash payments during the periods indicated (in thousands): Year Ended December 31, 2022 Year Ended December 31, 2021 Lease Cost: Operating lease cost $ 68 $ 75 Other Information: Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 94 $ 39 The following table summarizes the Company’s operating leases cash flow obligations on an undiscounted, annual basis (in thousands): Operating Leases 2023 $ 158 2024 155 2025 159 2026 163 2027 167 Thereafter 303 Subtotal 1,105 Less: impact of discount ( 277 ) Total $ 828 |
INVESTMENT SECURITIES AVAILABLE
INVESTMENT SECURITIES AVAILABLE-FOR-SALE | 12 Months Ended |
Dec. 31, 2022 | |
Debt Securities, Available-for-Sale [Abstract] | |
INVESTMENT SECURITIES AVAILABLE-FOR-SALE | NOTE 10 - INVESTMENT SECURITIES AVAILABLE-FOR-SALE Beginning in the first quarter of 2020, the COVID-19 pandemic produced material and previously unforeseeable liquidity shocks to credit markets, resulting in significant declines in the pricing of the Company’s investment securities available-for-sale. This triggered substantial margin calls by the Company’s counterparties and, in certain cases, formal notices of events of default, all of which were withdrawn or rescinded as of April 19, 2020. As a result of these circumstances and the uncertainty caused by the COVID-19 pandemic, substantially all the Company’s remaining CMBS available-for-sale were sold as of April 2020. During the year ended December 31, 2020, the Company incurred losses of $ 186.4 million on its CMBS portfolio, including realized losses of $ 180.3 million primarily attributable to the sale of 67 CMBS as of April 2020. The remaining unrealized losses of $ 6.1 million were recorded on two securities that previously had fair values below the amortized cost bases and which were expected to be sold prior to their recoveries, with an offsetting charge directly to their amortized cost bases. In March 2021, the Company sold these two positions, resulting in cash proceeds of $ 3.0 million and gains of $ 878,000 during the year ended December 31, 2021. The Company had no remaining CMBS positions at December 31, 2022 and 2021. |
INVESTMENTS IN UNCONSOLIDATED E
INVESTMENTS IN UNCONSOLIDATED ENTITIES | 12 Months Ended |
Dec. 31, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
INVESTMENTS IN UNCONSOLIDATED ENTITIES | NOTE 11 - INVESTMENTS IN UNCONSOLIDATED ENTITIES The Company’s investments in unconsolidated entities at December 31, 2022 and 2021 comprised a 100 % interest in the common shares of RCT I and RCT II with a value of $ 1.5 million in the aggregate, or 3.0 % of each trust. The Company records its investments in RCT I’s and RCT II’s common shares as investments in unconsolidated entities using the cost method, recording dividend income when declared by RCT I and RCT II. During the years ended December 31, 2022, 2021 and 2020 , the Company recorded dividends from its investments in RCT I’s and RCT II’s common shares, reported in other revenue on the consolidated statements of operations, of $ 91,000 , $ 65,000 , and $ 76,000 , respectively. |
BORROWINGS
BORROWINGS | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
BORROWINGS | NOTE 12 - BORROWINGS The Company historically has financed the acquisition of its investments, including investment securities and loans, through the use of secured and unsecured borrowings in the form of securitized notes, secured term warehouse financing facilities, a senior secured financing facility, a mortgage payable, senior unsecured notes, convertible senior notes and trust preferred securities issuances. Certain information with respect to the Company’s borrowings is summarized in the following table (dollars in thousands, except amounts in footnotes): Principal Outstanding Unamortized Issuance Costs and Discounts Outstanding Borrowings Weighted Average Borrowing Rate Weighted Average Remaining Maturity Value of Collateral At December 31, 2022: ACR 2021-FL1 Senior Notes $ 675,223 $ 3,826 $ 671,397 5.81 % 13.5 years 802,643 ACR 2021-FL2 Senior Notes 567,000 4,841 562,159 6.13 % 14.1 years 700,000 Senior secured financing facility 91,549 3,659 87,890 7.94 % 5.0 years 196,837 CRE - term warehouse financing facilities (1) 330,849 2,561 328,288 6.85 % 1.8 years 453,550 Mortgage payable 18,710 466 18,244 8.08 % 2.3 years 25,400 5.75 % Senior Unsecured Notes 150,000 2,493 147,507 5.75 % 3.6 years — Unsecured junior subordinated debentures 51,548 — 51,548 8.52 % 13.7 years — Total $ 1,884,879 $ 17,846 $ 1,867,033 6.29 % 10.3 years $ 2,178,430 Principal Outstanding Unamortized Issuance Costs and Discounts Outstanding Borrowings Weighted Average Borrowing Rate Weighted Average Remaining Maturity Value of Collateral At December 31, 2021: XAN 2020-RSO8 Senior Notes $ 142,375 $ 577 $ 141,798 2.18 % 13.2 years $ 229,263 XAN 2020-RSO9 Senior Notes 94,814 489 94,325 4.25 % 15.3 years 144,361 ACR 2021-FL1 Senior Notes (2) 675,223 5,410 669,813 1.60 % 14.5 years 802,643 ACR 2021-FL2 Senior Notes 567,000 6,437 560,563 1.90 % 15.1 years 700,000 Senior secured financing facility — 3,432 ( 3,432 ) 5.75 % 6.2 years 170,791 CRE - term warehouse financing facilities (1) 71,078 4,307 66,771 2.27 % 2.8 years 102,027 4.50 % Convertible Senior Notes 88,014 1,583 86,431 4.50 % 227 days — 5.75 % Senior Unsecured Notes (3) 150,000 3,393 146,607 5.75 % 4.6 years — Unsecured junior subordinated debentures 51,548 — 51,548 4.12 % 14.7 years — Total $ 1,840,052 $ 25,628 $ 1,814,424 2.44 % 12.7 years $ 2,149,085 (1) Principal outstanding includes accrued interest payable of $ 894,000 and $ 58,000 at December 31, 2022 and 2021, respectively. (2) Value of collateral excludes interest income of $ 730,000 and exit fees of $ 228,000 received as of December 31, 2021. (3) Includes deferred debt issuance costs of $ 306,000 at December 31, 2021 from the unused 12.00% senior unsecured notes due 2027 that had no outstanding balance at December 31, 2021. Securitizations The following table sets forth certain information with respect to the Company’s consolidated securitizations at December 31, 2022 (in thousands): Closing Date Maturity Date Reinvestment Period End (1) Total Note Paydowns from Closing Date through December 31, 2022 ACR 2021-FL1 May 2021 June 2036 May 2023 $ — ACR 2021-FL2 December 2021 January 2037 December 2023 $ — (1) The reinvestment period is the period in which principal proceeds received may be used to acquire CRE loans for reinvestment into the securitization. The investments held by the Company’s securitizations collateralize the securitizations’ borrowings and, as a result, are not available to the Company, its creditors, or stockholders. All senior notes of the securitizations held by the Company at December 31, 2022 and 2021 were eliminated in consolidation. XAN 2019-RSO7 In April 2019, the Company closed Exantas Capital Corp. 2019-RSO7, Ltd. (“XAN 2019-RSO7”), a $ 687.2 million CRE debt securitization transaction that provided financing for CRE loans. In May 2021, the Company exercised the optional redemption of XAN 2019-RSO7, and all of the outstanding senior notes were paid off from the sales proceeds of certain of the securitization’s assets. XAN 2020-RSO8 In March 2020, the Company closed XAN 2020-RSO8, a $ 522.6 million CRE debt securitization transaction that provided financing for CRE loans. In March 2022, the Company exercised the optional redemption of XAN 2020-RSO8, and all of the outstanding senior notes were paid off from the sales proceeds of certain of the securitization’s assets. XAN 2020-RSO9 In September 2020, the Company closed XAN 2020-RSO9, a $ 297.0 million CRE debt securitization transaction that provided financing for CRE loans. In February 2022, the Company exercised the optional redemption of XAN 2020-RSO9, and all of the outstanding senior notes were paid off from the sales proceeds of certain of the securitization’s assets. ACR 2021-FL1 In May 2021, the Company closed ACRES Commercial Realty 2021-FL1 Issuer, Ltd. (“ACR 2021-FL1”), a $ 802.6 million CRE debt securitization transaction that provided financing for CRE loans. ACR 2021-FL1 issued a total of $ 675.2 million of non-recourse, floating-rate notes to third parties at par. Additionally, ACRES RF retained 100 % of the Class F and Class G notes and a subsidiary of ACRES RF retained 100 % of the outstanding preference shares. The preference shares are subordinated in right of payment to all other securities issued by ACR 2021-FL1. ACR 2021-F1 includes a reinvestment period, which ends in May 2023, that allows it to acquire CRE loans for reinvestment into the securitization using uninvested principal proceeds. At closing, the senior notes issued to investors consisted of the following classes: (i) $ 431.4 million of Class A notes bearing interest at one-month LIBOR plus 1.20 %; (ii) $ 100.3 million of Class A-S notes bearing interest at one-month LIBOR plus 1.60 %; (iii) $ 37.1 million of Class B notes bearing interest at one-month LIBOR plus 1.80 %; (iv) $ 43.1 million of Class C notes bearing interest at one-month LIBOR plus 2.00 %; (v) $ 50.2 million of Class D notes bearing interest at one-month LIBOR plus 2.65 %; and (vi) $ 13.0 million of Class E notes bearing interest at one-month LIBOR plus 3.10 %. All of the notes issued mature in June 2036 , although the Company has the right to call the notes beginning on the payment date in May 2023 and thereafter. ACR 2021-FL2 In December 2021, the Company closed ACRES Commercial Realty 2021-FL2 Issuer, Ltd. (“ACR 2021-FL2”), a CRE debt securitization transaction that can finance up to $ 700.0 million of CRE loans. ACR 2021-FL2 issued a total of $ 567.0 million of non-recourse, floating-rate notes to third parties at par. Additionally, ACRES RF retained 100 % of the Class F and Class G notes and a subsidiary of ACRES RF retained 100 % of the outstanding preference shares. The preference shares are subordinated in right of payment to all other securities issued by ACR 2021-FL2. ACR 2021-FL2 included a 180-day ramp up acquisition period that allowed it to acquire CRE loans using unused proceeds from the issuance of the non-recourse floating-rate notes. Additionally, ACR 2021-FL2 includes a reinvestment period, which ends in December 2023, that allows it to acquire CRE loans for reinvestment into the securitization using uninvested principal proceeds. At closing, the senior notes issued to investors consisted of the following classes: (i) $ 385.0 million of Class A notes bearing interest at one-month LIBOR plus 1.40 %; (ii) $ 30.6 million of Class A-S notes bearing interest at one-month LIBOR plus 1.75 %; (iii) $ 38.5 million of Class B notes bearing interest at one-month LIBOR plus 2.25 %; (iv) $ 47.3 million of Class C notes bearing interest at one-month LIBOR plus 2.65 %; (v) $ 51.6 million of Class D notes bearing interest at one-month LIBOR plus 3.10 %; and (vi) $ 14.0 million of Class E notes bearing interest at one-month LIBOR plus 4.00 %. All of the notes issued mature in January 2037 , although the Company has the right to call the notes beginning on the payment date in December 2023 and thereafter. Corporate Debt Unsecured Junior Subordinated Debentures During 2006, the Company formed RCT I and RCT II for the sole purpose of issuing and selling capital securities representing preferred beneficial interests. RCT I and RCT II are not consolidated into the Company’s consolidated financial statements because the Company is not deemed to be the primary beneficiary of these entities. In connection with the issuance and sale of the capital securities, the Company issued junior subordinated debentures to RCT I and RCT II of $ 25.8 million each, representing the Company’s maximum exposure to loss. The debt issuance costs associated with the junior subordinated debentures for RCT I and RCT II were included in borrowings and were amortized into interest expense on the consolidated statements of operations using the effective yield method over a ten year period. There were no unamortized debt issuance costs associated with the junior subordinated debentures for RCT I and RCT II outstanding at December 31, 2022 and 2021. The interest rates for RCT I and RCT II, at December 31, 2022, were 8.68 % and 8.36 % , respectively. The interest rates for RCT I and RCT II, at December 31, 2021, were 4.17 % and 4.08 % , respectively. The rights of holders of common securities of RCT I and RCT II are subordinate to the rights of the holders of capital securities only in the event of a default; otherwise, the common securities’ economic and voting rights are pari passu with the capital securities. The capital and common securities of RCT I and RCT II are subject to mandatory redemption upon the maturity or call of the junior subordinated debentures held by each. Unless earlier dissolved, RCT I will dissolve in May 2041 and RCT II will dissolve in September 2041. The junior subordinated debentures are the sole assets of RCT I and RCT II, which mature in June 2036 and October 2036 , respectively, and may currently be called at par. 4.50% Convertible Senior Notes The Company issued $ 143.8 million aggregate principal of its 4.50 % convertible senior notes due 2022 (“4.50% Convertible Senior Notes”) in August 2017. During the year ended December 31, 2021, the Company repurchased $ 55.7 million of its 4.50% Convertible Senior Notes, resulting in a charge to earnings of $ 1.5 million, comprising an extinguishment of debt charge of $ 1.2 million in connection with the acceleration of the market discount and interest expense of $ 304,000 in connection with the acceleration of deferred debt issuance costs. In February 2022, the Company repurchased $ 39.8 million of its 4.50 % Convertible Senior Notes, resulting in a charge to earnings of $ 574,000 , comprising an extinguishment of debt charge of $ 460,000 in connection with the acceleration of the market discount and interest expense of $ 114,000 in connection with the acceleration of deferred debt costs. In August 2022, the remaining $ 48.2 million of the 4.50 % Convertible Senior Notes were paid off upon maturity at par. During the years ended December 31, 2022 and 2021, the effective interest rate was 7.43 %. Senior Unsecured Notes 5.75% Senior Unsecured Notes Due 2026 On August 16, 2021, the Company issued $ 150.0 million of its 5.75 % senior unsecured notes due 2026 (the “5.75% Senior Unsecured Notes”) pursuant to its Indenture, dated August 16, 2021 (the “Base Indenture”), between it and Wells Fargo, now Computershare Trust Company, N.A. (“CTC”), as trustee (the “Trustee”), as supplemented by the First Supplemental Indenture, dated August 16, 2021, between it and Wells Fargo, now CTC, (the “Supplemental Indenture” and, together with the Base Indenture, the “Indenture”). Prior to May 15, 2026, the Company may at its option redeem the 5.75% Senior Unsecured Notes, in whole or in part, at a redemption price equal to the sum of (i) 100 % of the principal amount of the notes to be redeemed, plus accrued and unpaid interest to, but not including, the redemption date, and (ii) a make-whole premium. On or after May 15, 2026, the Company may at its option redeem the 5.75% Senior Unsecured Notes, at any time, in whole or in part, on not less than 15 nor more than 60 days’ prior notice, at a redemption price equal to 100% of the principal amount of the 5.75% Senior Unsecured Notes to be redeemed, plus accrued and unpaid interest to, but not including, the redemption date . The Indenture contains restrictive covenants that, among other things, require the Company to maintain certain financial ratios. The foregoing limitations are subject to exceptions as set forth in the Supplemental Indenture. At December 31, 2022 , the Company was in compliance with these covenants. The Indenture provides for customary events of default that include, among other things (subject in certain cases to customary grace and cure periods): (i) non-payment of principal or interest, (ii) breach of certain covenants contained in the Indenture or the 5.75% Senior Unsecured Notes, (iii) an event of default or acceleration of certain other indebtedness of the Company or a subsidiary in which the Company has invested at least $ 75 million in capital within the applicable grace period and (iv) certain events of bankruptcy or insolvency. Generally, if an event of default occurs (subject to certain exceptions), CTC or the holders of at least 25 % in aggregate principal amount of the then outstanding 5.75% Senior Unsecured Notes may declare all of the notes to be due and payable. 12.00% Senior Unsecured Notes On July 31, 2020, the Company entered into a Note and Warrant Purchase Agreement (the “Note and Warrant Purchase Agreement”) with Oaktree Capital Management, L.P. (“Oaktree”) and Massachusetts Mutual Life Insurance Company (“MassMutual”) pursuant to which the Company could issue to Oaktree and MassMutual from time to time up to $ 125.0 million aggregate principal amount of 12.00 % Senior Unsecured Notes. The 12.00% Senior Unsecured Notes had an annual interest rate of 12.00 %, payable up to 3.25 % (at the election of the Company) as pay-in-kind interest and the remainder as cash interest. On July 31, 2020, the Company issued to Oaktree $ 42.0 million aggregate principal amount of the 12.00% Senior Unsecured Notes. In addition, on July 31, 2020, the Company issued to MassMutual $ 8.0 million aggregate principal amount of the 12.00% Senior Unsecured Notes. At December 31, 2021 , the Company had a discount of $ 3.1 million (the offset of which was recorded in additional paid-in capital) on the 12.00% Senior Unsecured Notes. On August 18, 2021, the Company entered into an agreement with Oaktree and MassMutual that provided for the redemption in full of the outstanding balance of the 12.00% Senior Unsecured Notes, including a waiver of certain sections of the Note and Warrant Purchase Agreement. On August 20, 2021, the redemption was consummated and a payment to Oaktree and MassMutual was made for an aggregate $ 55.3 million, which consisted of (i) principal in the amount of $ 50.0 million, (ii) interest in the amount of $ 329,000 and (iii) a make-whole amount of $ 5.0 million. In connection with the redemption, the Company recorded a charge to earnings of $ 8.0 million, comprising an extinguishment of debt charge of $ 7.8 million in connection with (i) the $ 5.0 million net make-whole amount and (ii) the $ 2.8 million acceleration of the remaining market discount; and interest expense of $ 218,000 in connection with the acceleration of deferred debt issuance costs. In January 2022, the Company entered into an amendment of the Note and Warrant Purchase Agreement that extended the time to July 2022 that the Company could elect to issue to Oaktree and MassMutual up to $ 75.0 million of principal of additional notes. The Company did not issue any additional notes under this agreement and it expired as of July 31, 2022. Senior Secured Financing Facility, Term Warehouse Financing Facilities and Mortgage Payable Borrowings under the Company’s senior secured financing facility, term warehouse facilities and mortgage payable are guaranteed by the Company or one or more of its subsidiaries. The following table sets forth certain information with respect to the Company’s senior secured financing facility, term warehouse facilities and mortgage payable (dollars in thousands, except amounts in footnotes): December 31, 2022 December 31, 2021 Outstanding Borrowings Value of Collateral Number of Positions as Collateral Weighted Average Interest Rate Outstanding Borrowings Value of Collateral Number of Positions as Collateral Weighted Average Interest Rate Senior Secured Financing Facility Massachusetts Mutual Life Insurance Company (1) $ 87,890 $ 196,837 8 7.94 % $ ( 3,432 ) $ 170,791 9 5.75 % CRE - Term Warehouse Financing Facilities (2) JPMorgan Chase Bank, N.A. (3) 186,783 255,095 11 6.74 % 18,875 37,167 3 2.85 % Morgan Stanley Mortgage Capital Holdings LLC (4) 141,505 198,455 10 7.00 % 47,896 64,860 3 2.03 % Mortgage Payable Readycap Commercial, LLC (5) 18,244 25,400 1 8.08 % — — — — Total $ 434,422 $ 675,787 $ 63,339 $ 272,818 (1) Includes $ 3.7 million and $ 3.4 million of deferred debt issuance costs at December 31, 2022 and 2021, respectively. (2) Outstanding borrowings include accrued interest payable. (3) Includes $ 1.1 million and $ 1.8 million of deferred debt issuance costs at December 31, 2022 and 2021 , respectively, which includes $ 356,000 of deferred debt issuance costs at December 31, 2021 from another term warehouse financing facility with no balance that matured in October 2022 . (4) Includes $ 1.4 million and $ 2.2 million of deferred debt issuance costs at December 31, 2022 and 2021, respectively. (5) Includes $ 466,000 of deferred debt issuance costs at December 31, 2022. The following table shows information about the amount at risk under the Company's financing arrangements (dollars in thousands): Amount at Risk (1) Weighted Average Remaining Maturity Weighted Average Interest Rate At December 31, 2022: Senior Secured Financing Facility (1) Massachusetts Mutual Life Insurance Company $ 105,818 5.0 years 7.94 % CRE - Term Warehouse Financing Facilities (1) JPMorgan Chase Bank, N. A. $ 68,768 1.8 years 6.74 % Morgan Stanley Mortgage Capital Holdings LLC $ 56,817 1.8 years 7.00 % Mortgage Payable (2) Readycap Commercial, LLC $ 6,602 2.3 years 8.08 % (1) Equal to the total of the estimated fair value of securities or loans sold and accrued interest receivable, minus the total of the warehouse financing agreement liabilities and accrued interest payable. (2) Equal to the total of the estimated fair value of real estate property investment financed, minus the total of the mortgage payable agreement liability and accrued interest payable. The Company was in compliance with all financial covenants in each agreement at December 31, 2022. Senior Secured Financing Facility On July 31, 2020, an indirect, wholly owned subsidiary (“Holdings”), along with its direct wholly owned subsidiary (the “Borrower”), of the Company entered into a $ 250.0 million Loan and Servicing Agreement (the “MassMutual Loan Agreement”) with MassMutual and the other lenders party thereto (the “Lenders”). The asset-based revolving loan facility (the “MassMutual Facility”) provided under the MassMutual Loan Agreement has been used to finance the Company’s core CRE lending business. The MassMutual Facility initially had an interest rate of 5.75 % per annum payable monthly and matured on July 31, 2027 . The Company paid a commitment fee as well as other reasonable closing costs. The loans under the MassMutual Facility are available for drawing during the first two years of the MassMutual Facility (the “Availability Period”). During the Availability Period, an unused commitment fee of 0.50 % per annum (payable monthly ) on unused commitments under the MassMutual Loan Agreement is payable for each day on which less than 75 % of the total commitment is drawn. Pursuant to the MassMutual Loan Agreement, the Borrower’s obligations under the MassMutual Loan Agreement are secured by the Borrower’s assets and Holdings’ equity interests in the Borrower, including all distributions, proceeds and profits from Holdings’ interests in the Borrower. In September 2020, the MassMutual Loan Agreement was amended pursuant to which (i) the initial portfolio assets were revised and an agreed advance rate for each initial portfolio asset (each, an “Initial Portfolio Asset Advance Rate”) was set, and (ii) the revolving loan facility under the MassMutual Loan Agreement was amended to require the initial lender (currently MassMutual) to provide a specific advance rate for any future eligible portfolio assets and to limit the aggregate total amount of advances outstanding at any time to both the total facility amount and, in lieu of a 55 % LTV, a borrowing base as of any required date of determination equal to the sum of, in each case, the product of the advance rate for such eligible portfolio asset (including in respect of the initial portfolio assets, the applicable Initial Portfolio Asset Advance Rate therefor) and the then determined value of such eligible portfolio asset. In May 2021, the MassMutual Loan Agreement was amended pursuant to which (i) Mass Mutual consented to Borrower’s formation of certain subsidiaries to hold real estate and (ii) such subsidiaries agreed to entered into guaranty agreements in favor of the secured parties under the MassMutual Loan Agreement. In connection with the MassMutual Loan Agreement, the Company entered into a Guaranty (the “MassMutual Guaranty”) among the Company, Exantas Real Estate Funding 2018-RSO6 Investor, LLC (“RSO6”), Exantas Real Estate Funding 2019-RSO7 Investor, LLC (“RSO7”) and Exantas Real Estate Funding 2020-RSO8 Investor, LLC (“RSO8”), each an indirect, wholly owned subsidiary of the Company, in favor of the secured parties under the MassMutual Loan Agreement. As of December 31, 2021, RSO6, RSO7 and RSO8 no longer exist. Pursuant to the MassMutual Guaranty, the Company fully guaranteed all payments and performance of Holdings and the Borrower under the MassMutual Loan Agreement. Additionally, the Company, and previously RSO6, RSO7 and RSO8, made certain representations and warranties and agreed to not incur debt or liens, each subject to certain exceptions, and agreed to provide the Lenders with certain information. The MassMutual Loan Agreement contained events of default, subject to certain materiality thresholds and grace periods, customary for this type of financing arrangement. The remedies for such events of default are also customary for this type of transaction. The MassMutual Loan Agreement was further amended in several instances pursuant to which (i) MassMutual consented to the formation of certain subsidiaries to hold real estate and (ii) such subsidiaries agreed to enter into guaranty agreements in favor of the secured parties under the MassMutual Loan Agreement. In July 2022, Holdings, the Borrower and the Lenders entered into the Fifth Amendment to the MassMutual Loan Agreement (the “July 2022 Amendment”) to (i) extend the availability period from July 31, 2022 to August 31, 2022 and (ii) amend the interest rate on the outstanding principal amount of the borrowings, with respect to borrowings made in connection with eligible portfolio assets transferred to any borrower after the effective date of the July 2022 Amendment to the rate per annum determined by the initial lender or otherwise 5.75 % per annum. In August 2022, Holdings, the Borrower and the Lenders entered into the Sixth Amendment to the MassMutual Loan Agreement to extend the availability period from August 31, 2022 to October 15, 2022 . In December 2022, Holdings, the Borrower and the Lenders entered into an Amended and Restated Loan and Servicing Agreement, which amends and restates the existing loan and servicing agreement, and reflects a senior secured term loan facility, not to exceed $ 500.0 million, composed of individual loan series issued upon mutual agreement of the Borrower and Lenders. Each loan series will be available for three months after the closing date agreed upon by the Borrower and Lender (“Commitment Period”), subject to the maximum dollar amount agreed upon for that series. The Commitment Period is subject to immediate termination upon the occurrence of an event of default. Each loan series will have a final maturity of five years from the issuance date for the loan series unless an additional time is mutually agreed upon by Lenders and Borrower. The advance rate on portfolio assets will be mutually agreed upon by Lenders and Borrower. Each loan series will have its own mutually agreed upon interest rate equal to one-month Term SOFR plus the applicable spread. The Amended and Restated Loan and Servicing Agreement contains events of default, subject to certain materiality thresholds and grace periods, customary for this type of financing arrangement. The remedies for such events of default are also customary for this type of transaction and include declaring the final maturity date to have occurred and advances due and liquidation of the assets securing the series. CRE - Term Warehouse Financing Facilities In February 2012, a wholly-owned subsidiary entered into a master repurchase and securities agreement (the “2012 Facility”) with Wells Fargo to finance the origination of CRE loans. In July 2018, the subsidiary entered into an amended and restated master repurchase agreement (the “2018 Facility”), in exchange for an extension fee and other reasonable costs, that maintained the $ 250.0 million maximum facility amount and extended the term of the facility to July 2020 with three one-year extension options exercisable at the Company’s discretion. In October 2021, the 2018 Facility matured. In April 2018, the Company’s indirect wholly-owned subsidiary entered into a master repurchase agreement (the “Barclays Facility”) with Barclays to finance the origination of CRE loans. In connection with the Barclays Facility, the Company entered into a guaranty agreement (the “Barclays Guaranty”) pursuant to which the Company fully guaranteed all payments and performance under the Barclays Facility. In March 2021, the Company amended the Barclays Facility to extend the revolving period through October 2021 . In October 2021, the Barclays Facility and the Barclays Guaranty were amended to extend the revolving period of the facility to October 2022 and to modify the guaranty to limit financial covenants to be applicable when there are outstanding transactions. The Barclays Facility had a maximum facility amount of $ 250.0 million and charged interest of one-month LIBOR plus market spreads. In February 2022, the Company amended the Barclays Facility to add market terms regarding the replacement of LIBOR upon determination of a benchmark transition event. In October 2022, the Barclays Facility matured. In October 2018, an indirect wholly-owned subsidiary of the Company entered into a master repurchase agreement (the “JPMorgan Chase Facility”) with JPMorgan Chase to finance the origination of CRE loans. In connection with the JPMorgan Chase Facility, the Company entered into a guarantee agreement (the “JPMorgan Chase Guarantee”) pursuant to which the Company fully guaranteed all payments and performance under the JPMorgan Chase Facility. In May 2020, the Company entered into an amendment to the JPMorgan Chase Guarantee that revised its minimum equity financial covenant as of February 29, 2020. In October 2020, the Company entered into an amendment to the JPMorgan Chase Guarantee that revised a covenant definition so that credit losses are determined in accordance with a risk rating-based methodology. In September and October 2021, the JPMorgan Chase Facility was amended twice, resulting in (i) the extension of the JPMorgan Chase Facility’s maturity date to October 2024, (ii) an update to the Company’s tangible net worth requirement and minimum liquidity covenant as set forth in the guarantee agreement and (iii) a modification of market terms regarding the replacement of LIBOR upon determination of a benchmark transition event. In November 2022, the JPMorgan Chase Facility was amended for the following (i) EBITDA to interest expense ratio, (ii) maximum ratio of total indebtedness to its total equity, and (iii) minimum unencumbered liquidity requirement, each through September 2023 . The JPMorgan Chase Facility has a maximum facility amount of $ 250.0 million, charges interest of one-month benchmark plus market spreads and has an initial maturity date of October 2024 . The JPMorgan Chase Facility contains margin call provisions that provide JPMorgan Chase with certain rights if the value of purchased assets declines. Under these circumstances, JPMorgan Chase may require the Company to transfer cash in an amount necessary to eliminate such margin deficit or repurchase the asset(s) that resulted in the margin call. In connection with the JPMorgan Chase Facility, the Company guaranteed the payment and performance under the JPMorgan Chase Facility pursuant to the JPMorgan Chase Guarantee subject to a limit of 25 % of the then currently unpaid aggregate repurchase price of all purchased assets. The JPMorgan Chase Guarantee includes certain financial covenants required of the Company, including required liquidity, required capital, ratios of total indebtedness to equity and EBITDA requirements. Also, ACRES RF, the direct owner of the wholly-owned subsidiary borrower, executed a pledge agreement with JPMorgan Chase pursuant to which it pledged and granted to JPMorgan Chase a continuing security interest in any and all of its right, title and interest in and to the wholly-owned subsidiary, including all distributions, proceeds, payments, income and profits from its interests in the wholly-owned subsidiary. The JPMorgan Chase Facility specifies events of default, subject to certain materiality thresholds and grace periods, customary for this type of financing arrangement. The remedies for such events of default are also customary for this type of financing arrangement and include the acceleration of the principal amount outstanding under the JPMorgan Chase Facility and the liquidation by JPMorgan Chase of purchased assets then subject to the JPMorgan Chase Facility. In November 2021, an indirect, wholly-owned subsidiary of the Company entered into a $ 250.0 million Master Repurchase and Securities Contract Agreement with Morgan Stanley, to be used to finance the Company’s commercial real estate lending business (the “Morgan Stanley Facility”). Each repurchase transaction will specify its own terms, such as identification of the assets subject to the transaction, sale price, repurchase price and rate. In January 2022, the Morgan Stanley Facility was amended to add market terms regarding the replacement of LIBOR upon determination of a benchmark transition event. In November 2022, the Morgan Stanley Facility was amended for the following (i) EBITDA to interest expense ratio, (ii) maximum ratio of total indebtedness to its total equity, and (iii) minimum unencumbered liquidity requirement, each through March 2024 . The Morgan Stanley Facility has a maximum facility amount of $ 250.0 million, charges interest of one-month benchmark plus market spreads and matures in November 2024 . The Company also has the right to request a one-year extension. The Morgan Stanley Facility contains margin call provisions that provide Morgan Stanley with certain rights if the value of purchased assets declines. Under these circumstances, Morgan Stanley may require the subsidiary to transfer cash in an amount necessary to eliminate such margin deficit or repurchase the asset(s) that resulted in the margin call. The Company guaranteed its subsidiary’s payment and performance under the Morgan Stanley Facility pursuant to a guaranty agreement (the “Morgan Stanley Guaranty”), subject to a limit of 25 % of the then currently unpaid aggregate repurchase price of all purchased assets. The Morgan Stanley Guaranty includes certain financial covenants required of the Company, including required liquidity, required capital, ratios of total intendedness to equity and EBITDA requirements. Also, the subsidiary’s direct parent, ACRES RF, executed a Pledge Agreement with Morgan Stanley pursuant to which ACRES RF pledged and granted to Morgan Stanley a continuing security interest in any and all of ACRES RF’s right, title and interest in and to the subsidiary, including all distributions, proceeds, payments, income and profits from ACRES RF’s interests in the subsidiary. The Morgan Stanley Facility specifies events of default, subject to certain materiality thresholds and grace periods, customary for this ty |
SHARE ISSUANCE AND REPURCHASE
SHARE ISSUANCE AND REPURCHASE | 12 Months Ended |
Dec. 31, 2022 | |
Stockholders' Equity Note [Abstract] | |
SHARE ISSUANCE AND REPURCHASE | NOTE 13 - SHARE ISSUANCE AND REPURCHASE In May 2021, and subsequently in June 2021, the Company issued a total of 4.6 million shares of 7.875 % Series D Cumulative Redeemable Preferred Stock (“Series D Preferred Stock”) at a public offering price of $ 25.00 per share. The Company received net proceeds of $ 110.4 million after $ 4.6 million of underwriting discounts and other offering expenses. Dividends are payable quarterly in arrears at the end of January, April, July and October. The Series D Preferred Stock has no maturity date and the Company is not required to redeem the Series D Preferred Stock at any time. On or after May 21, 2026, the Company may, at its option, redeem the Series D Preferred Stock, in whole or part, at any time and from time to time, for cash at $ 25.00 per share, plus accrued and unpaid dividends, if any, to the redemption date. On October 4, 2021, the Company and the Manager entered into an Equity Distribution Agreement with JonesTrading Institutional Services LLC, as placement agent (“JonesTrading”), pursuant to which the Company may issue and sell from time to time up to 2.2 million shares of the Series D Preferred Stock. Sales of the Series D Preferred Stock may be made in transactions that are deemed to be “at the market” offerings, as defined in Rule 415 of the Securities Act of 1933, as amended, including without limitation, sales made directly on the New York Stock Exchange, on any other existing trading market for the shares or to or through a market maker. Subject to the terms of the Company’s notice, JonesTrading may also sell the shares by any other method permitted by law, including but not limited to in privately negotiated transactions. The Company will pay JonesTrading a commission up to 3.0 % of the gross proceeds from the sales of the Series D Preferred Stock pursuant to the agreement. The terms and conditions of the agreement include various representations and warranties, conditions to closing, indemnification rights and obligations of the parties and termination provisions. During the year ended December 31, 2022, the Company did not issue any Series D Preferred Stock through this agreement. During the year ended December 31, 2021, the Company received net proceeds of $ 194,000 from the issuance of 7,857 shares of Series D Preferred Stock governed by the agreement. On or after July 30, 2024, the Company may, at its option, redeem its 8.625 % Fixed-to-Floating Series C Cumulative Redeemable Preferred Stock (“Series C Preferred Stock”), in whole or in part, at any time and from time to time, for cash at $ 25.00 per share, plus accrued and unpaid dividends, if any, to the redemption date. Effective July 30, 2024 and thereafter, the Company will pay cumulative distributions on the Series C Preferred Stock at a floating rate equal to three-month LIBOR plus a spread of 5.927 % per annum based on the $ 25.00 liquidation preference, provided that such floating rate shall not be less than the initial rate of 8.625 % at any date of determination. At December 31, 2022 , the Company had 4.8 million shares of Series C Preferred Stock and 4.6 million shares of Series D Preferred Stock outstanding, with weighted average issuance prices, excluding offering costs, of $ 25.00 . In March 2016, the board of directors (the “Board”) approved a securities repurchase plan and in November 2020, the Board reauthorized and approved the continued use of this plan to repurchase up to $ 20.0 million of the outstanding shares of the Company’s common stock. Additionally, the Board authorized the Company to enter into written trading plans under Rule 10b5-1 of the Securities Exchange Act of 1934 (“the Exchange Act”). In July 2021, the authorized amount was fully utilized. In November 2021, the Board authorized and approved the continued use of its existing share repurchase program to repurchase an additional $ 20.0 million of the outstanding shares of the Company's common stock. Under the share repurchase program, the Company intends to repurchase shares through open market purchases, privately-negotiated transactions, block purchases or otherwise in accordance with applicable federal securities laws, including Rule 10b-18 and 10b5-1 of the Exchange Act. During the years ended December 31, 2022 and 2021 , the Company repurchased $ 9.1 million and $ 18.4 million of its common stock, representing 848,978 and 1,346,424 shares, respectively. At December 31, 2022 , $ 7.2 million remains available under this repurchase plan. In connection with the Note and Warrant Purchase Agreement, the 12.00% Senior Unsecured Notes give Oaktree and MassMutual warrants to purchase an aggregate of up to 1,166,653 shares of common stock at an exercise price of $ 0.03 per share, subject to certain potential adjustments. On July 31, 2020, concurrently with the issuance of the 12.00% Senior Unsecured Notes, the Company issued to Oaktree warrants to purchase 391,995 shares of common stock for an aggregate purchase price of $ 42.0 million and issued to MassMutual warrants to purchase 74,666 shares of common stock for an aggregate purchase price of $ 8.0 million. The warrants are recorded in additional paid-in capital on the consolidated balance sheets at their fair value of $ 3.1 million at issuance. The warrants are immediately exercisable on issuance and expire seven years from the issuance date. The warrants can be exercised with cash or as a net exercise. In July 2022, MassMutual exercised their warrants to purchase 74,666 shares. |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
SHARE-BASED COMPENSATION | NOTE 14 - SHARE-BASED COMPENSATION In June 2021, the Company’s shareholders approved the ACRES Commercial Realty Corp. Third Amended and Restated Omnibus Equity Compensation Plan (the “Omnibus Plan”) and the ACRES Commercial Realty Corp. Manager Incentive Plan (the “Manager Plan” and together with the Omnibus Plan, the “Plans”). The Omnibus Plan was amended (i) increase the number of shares authorized for issuance by an additional 1,100,000 shares of common stock less any shares of common stock issued or subject to awards granted under the Manager Plan; and (ii) extend the expiration date of the Omnibus Plan from June 2029 to June 2031 . The maximum number of shares that may be subject to awards granted under the Plans, determined on a combined basis, will be 1,700,817 shares of common stock. The Company recognized stock-based compensation expense of $ 3.6 million, $ 1.7 million and $ 3.1 million during the years ended December 31, 2022, 2021 and 2020, respectively, related to restricted stock. The following table summarizes the Company’s restricted common stock transactions: Manager Directors Total Number of Shares Weighted-Average Grant-Date Fair Value Unvested shares at January 1, 2022 299,999 33,330 333,329 $ 17.39 Issued 299,999 33,334 333,333 11.85 Vested ( 74,999 ) ( 8,330 ) ( 83,329 ) 17.39 Forfeited — — — — Unvested shares at December 31, 2022 524,999 58,334 583,333 $ 14.22 The unvested restricted common stock shares are expected to vest during the following years: Shares 2023 166,658 2024 166,658 2025 166,671 2026 83,346 Total 583,333 The shares issued during the year ended December 31, 2022 will vest in installments over a four-year period, pursuant to the terms of the respective award agreements. At December 31, 2022 , total unrecognized compensation costs relating to unvested restricted stock was $ 4.5 million based on the grant date fair value of shares granted. The cost is expected to be recognized over a weighted average period of 3.0 years. Under the Company’s Fourth Amended and Restated Management Agreement, as amended (“Management Agreement”), incentive compensation is paid quarterly. Up to 75 % of the incentive compensation is paid in cash and at least 25 % is paid in the form of an award of common stock recorded in management fees on the consolidated statements of operations. During the year ended December 31, 2022, the Company incurred incentive compensation payable to the Manager of $ 340,000 , of which $ 170,000 was payable in cash and $ 170,000 , representing 17,780 shares, was payable in common stock. No incentive compensation was paid to the Manager for the years ended December 31, 2021 and 2020. The Omnibus Plan and the Manager Plan are administered by the compensation committee of the Company’s Board (the “Compensation Committee”). In 2020, the Compensation Committee and the Board created parameters for equity awards, whereby they are no longer discretionary but are now based upon the Company’s achievement of performance parameters using book value of the common stock as the appropriate benchmark. See Note 18 for a description of awards made under the Manager Plan. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | NOTE 15 - EARNINGS PER SHARE The following table presents a reconciliation of basic and diluted earnings (losses) per common share for the periods presented (dollars in thousands, except per share amounts): Years Ended December 31, 2022 2021 2020 Net income (loss) $ 10,426 $ 33,923 $ ( 197,713 ) Net income allocated to preferred shares ( 19,422 ) ( 15,887 ) ( 10,350 ) Net loss allocable to non-controlling interest, net of taxes 197 — — Net (loss) income allocable to common shares $ ( 8,799 ) $ 18,036 $ ( 208,063 ) Weighted average number of common shares outstanding: Weighted average number of common shares outstanding - basic 8,380,490 9,269,607 10,566,904 Weighted average number of warrants outstanding (1) 431,271 466,661 196,357 Total weighted average number of common shares outstanding - basic 8,811,761 9,736,268 10,763,261 Effect of dilutive securities - unvested restricted stock — 26,949 — Weighted average number of common shares outstanding - diluted 8,811,761 9,763,217 10,763,261 Net (loss) income per common share - basic $ ( 1.00 ) $ 1.85 $ ( 19.33 ) Net (loss) income per common share - diluted $ ( 1.00 ) $ 1.85 $ ( 19.33 ) (1) See Note 13 for further details regarding the warrants. |
DISTRIBUTIONS
DISTRIBUTIONS | 12 Months Ended |
Dec. 31, 2022 | |
Distributions [Abstract] | |
DISTRIBUTIONS | NOTE 16 - DISTRIBUTIONS In order to qualify as a REIT, the Company must currently distribute at least 90 % of its taxable income. In addition, the Company must distribute 100 % of its taxable income in order to not be subject to corporate federal income taxes on retained income. The Company anticipates it will distribute substantially all of its taxable income to its stockholders. Because taxable income differs from cash flow from operations due to non-cash revenues or expenses (such as provisions for loan and lease losses and depreciation) and tax loss carryforwards, in certain circumstances the Company may generate operating cash flow in excess of its distributions or, alternatively, may be required to borrow funds to make sufficient distribution payments. The Company’s 2023 distributions are, and will be, determined by the Company’s Board, which will also consider the composition of any distributions declared, including the option of paying a portion in cash and the balance in additional shares of common stock. For the years ended December 31, 2022, 2021 and 2020 , the Company did no t pay any common share distributions. The following table presents distributions declared (on a per share basis) for the years ended December 31, 2022, 2021 and 2020 with respect to the Company’s Series C Preferred Stock and Series D Preferred Stock: Series C Preferred Stock Series D Preferred Stock Date Paid Total Distribution Paid Distribution Per Share Date Paid Total Distribution Paid Distribution Per Share (in thousands) (in thousands) 2022 December 31 January 30, 2023 $ 2,587 $ 0.5390625 January 30, 2023 $ 2,268 $ 0.4921875 September 30 October 31 2,587 0.5390625 October 31 2,268 0.4921875 June 30 August 1 2,588 0.5390625 August 1 2,268 0.4921875 March 31 May 2 2,588 0.5390625 May 2 2,268 0.4921875 2021 December 31 January 31, 2022 $ 2,588 $ 0.5390625 January 31, 2022 $ 2,268 $ 0.4921875 September 30 November 1 2,588 0.5390625 November 1 2,264 0.4921875 June 30 July 30 2,588 0.5390625 July 30 1,736 0.3773440 March 31 April 30 2,588 0.5390625 N/A N/A N/A 2020 December 31 February 1, 2021 $ 2,587 $ 0.5390625 N/A N/A N/A March 31, June 30, and September 30 October 25 7,763 1.6171875 N/A N/A N/A |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE (LOSS) | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | NOTE 17 - ACCUMULATED OTHER COMPREHENSIVE LOSS Th e following table presents the changes in net unrealized loss on derivatives, the sole component of accumulated other comprehensive loss, for the year ended December 31, 2022 (in thousands): Accumulated Other Comprehensive Loss - Net Unrealized Gain on Derivatives Balance at January 1, 2022 $ ( 8,127 ) Amounts reclassified from accumulated other comprehensive loss (1) 1,733 Balance at December 31, 2022 $ ( 6,394 ) (1) Amounts reclassified from accumulated other comprehensive loss are reclassified to interest expense on the Company’s consolidated statements of operations. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 18 - RELATED PARTY TRANSACTIONS Management Agreement In March 2005, the Company entered into a Management Agreement, which was last amended on February 16, 2021, with the Manager pursuant to which the Manager provides the day-to-day management of the Company’s operations. The Management Agreement requires the Manager to manage the Company’s business affairs in conformity with the policies and investment guidelines established by the Company’s Board. The Manager provides its services under the supervision and direction of the Company’s Board. The Manager is responsible for the selection, purchase and sale of the Company’s portfolio investments, its financing activities and providing investment advisory services. The Manager and its affiliates also provide the Company with a Chief Financial Officer and a sufficient number of additional accounting, finance, tax and investor relations professionals. The Manager receives fees and is reimbursed for its expenses as follows: • A monthly base management fee equal to 1/12th of the amount of the Company’s equity multiplied by 1.50 %; provided, however, that for each calendar month through July 31, 2022, such fee was equal to a minimum of $ 442,000 . Under the Management Agreement, “equity” is equal to the net proceeds from issuances of shares of capital stock (or the value of common shares upon the conversion of convertible securities), after deducting any underwriting discounts and commissions and other expenses and costs relating to such issuance, plus or minus the Company’s retained earnings (excluding non-cash equity compensation incurred in current or prior periods) less all amounts the Company has paid for common stock and preferred stock repurchases. The calculation is adjusted for one-time events due to changes in GAAP, as well as other non-cash charges, upon approval of the Company’s independent directors. • Incentive compensation, calculated quarterly until the quarter ended December 31, 2022 as follows: (A) 20 % of the amount by which the Company’s EAD (as defined in the Management Agreement) for a quarter exceeds the product of (i) the weighted average of (x) the book value divided by 10,293,783 and (y) the per share price (including the conversion price, if applicable) paid for the Company’s common shares in each offering (or issuance, upon the conversion of convertible securities) by it subsequent to September 30, 2017, multiplied by (ii) the greater of (x) 1.75 % and (y) 0.4375 % plus one-fourth of the Ten Year Treasury Rate for such quarter ; multiplied by (B) the weighted average number of common shares outstanding during such quarter; subject to adjustment (a) to exclude events pursuant to changes in GAAP or the application of GAAP as well as non-recurring or unusual transactions or events, after discussion between the Manager and the independent directors and approval by a majority of the independent directors in the case of non-recurring or unusual transactions or events, and (b) to deduct an amount equal to any fees paid directly by a TRS (or any subsidiary thereof) to employees, agents and/or affiliates of the Manager with respect to profits of such TRS (or subsidiary thereof) generated from the services of such employees, agents and/or affiliates, the fee structure of which shall have been approved by a majority of the independent directors and which fees may not exceed 20 % of the net income (before such fees) of such TRS (or subsidiary thereof). With respect to each fiscal quarter commencing with the quarter ended December 31, 2022, an incentive management fee calculated and payable in arrears in an amount, not less than zero , equal to: • for the first full calendar quarter ended December 31, 2022 , the product of (a) 20 % and (b) the excess of (i) EAD of the Company for such calendar quarter, over (ii) the product of (A) the Company’s book value equity as of the end of such calendar quarter, and (B) 7 % per annum; • for each of the second, third and fourth full calendar quarters following the calendar quarter ended December 31, 2022, the excess of (1) the product of (a) 20 % and (b) the excess of (i) EAD of the Company for the calendar quarter(s) following September 30, 2022, over (ii) the product of (A) the Company’s book value equity in the calendar quarter(s) following September 30, 2022, and (B) 7 % per annum, over (2) the sum of any incentive compensation paid to the Manager with respect to the prior calendar quarter(s) following September 30, 2022 (other than the most recent calendar quarter); and • for each calendar quarter thereafter, the excess of (1) the product of (a) 20 % and (b) the excess of (i) EAD of the Company for the previous 12-month period, over (ii) the product of (A) the Company’s book value equity in the previous 12-month period, and (B) 7 % per annum, over (2) the sum of any incentive compensation paid to the Manager with respect to the first three calendar quarters of such previous 12-month period; provided , however, that no incentive compensation shall be payable with respect to any calendar quarter unless EAD for the 12 most recently completed calendar quarters (or such lesser number of completed calendar quarters from September 30, 2022) in the aggregate is greater than zero. • Per loan underwriting and review fees in connection with valuations of and potential investments in certain subordinate commercial mortgage pass-through certificates, in amounts approved by a majority of the independent directors. • Reimbursement of expenses for personnel of the Manager or its affiliates for their services in connection with the making of fixed-rate commercial real estate loans by the Company, in an amount equal to one percent of the principal amount of each such loan made. • Reimbursement of out-of-pocket expenses and certain other costs incurred by the Manager and its affiliates that relate directly to the Company and its operations. • Reimbursement of the Manager’s and its affiliates’ expenses for (A) wages, salaries and benefits of the Company’s Chief Financial Officer, and (B) a portion of the wages, salaries and benefits of accounting, finance, tax and investor relations professionals, in proportion to such personnel’s percentage of time allocated to its operations. Incentive compensation is calculated and payable quarterly to the Manager to the extent it is earned. Up to 75 % of the incentive compensation is payable in cash and at least 25 % is payable in the form of an award of common stock. The Manager may elect to receive more than 25 % of its incentive compensation in common stock. All shares are fully vested upon issuance, however, the Manager may not sell such shares for one year after the incentive compensation becomes due and payable unless the Management Agreement is terminated. Shares payable as incentive compensation are valued as follows: • if such shares are traded on a securities exchange, at the average of the closing prices of the shares on such exchange over the 30 -day period ending three days prior to the issuance of such shares; • if such shares are actively traded over-the-counter, at the average of the closing bid or sales price as applicable over the 30 -day period ending three days prior to the issuance of such shares; and • if there is no active market for such shares, at the fair market value as reasonably determined in good faith by the Board of the Company. The Management Agreement’s current contract term ends on July 31, 2023 and the agreement provides for automatic one year renewals on such date and on each July 31 thereafter until terminated. The Company’s Board reviews the Manager’s performance annually. The Management Agreement may be terminated annually upon the affirmative vote of at least two-thirds of the Company’s independent directors, or by the affirmative vote of the holders of at least a majority of the outstanding shares of its common stock, based upon unsatisfactory performance that is materially detrimental to the Company or a determination by its independent directors that the management fees payable to the Manager are not fair, subject to the Manager’s right to prevent such a compensation termination by accepting a mutually acceptable reduction of management fees. The Company’s Board must provide 180 days’ prior notice of any such termination. If the Company terminates the Management Agreement, the Manager is entitled to a termination fee equal to four times the sum of the average annual base management fee and the average annual incentive compensation earned by the Manager during the two 12-month periods immediately preceding the date of termination, calculated as of the end of the most recently completed fiscal quarter before the date of termination. The Company may also terminate the Management Agreement for cause with 30 days’ prior written notice from its Board. No termination fee is payable in the event of a termination for cause. The Management Agreement defines cause as: • the Manager’s continued material breach of any provision of the Management Agreement following a period of 30 days after written notice thereof; • the Manager’s fraud, misappropriation of funds, or embezzlement against the Company; • the Manager’s gross negligence in the performance of its duties under the Management Agreement; • the dissolution, bankruptcy or insolvency, or the filing of a voluntary bankruptcy petition, by the Manager; or • a change of control (as defined in the Management Agreement) of the Manager if a majority of the Company’s independent directors determines, at any point during the 18 months following the change of control, that the change of control was detrimental to the ability of the Manager to perform its duties in substantially the same manner conducted before the change of control. Cause does not include unsatisfactory performance that is materially detrimental to the Company’s business. The Manager may terminate the Management Agreement at its option, (A) in the event that the Company defaults in the performance or observance of any material term, condition or covenant contained in the Management Agreement and such default continues for a period of 30 days after written notice thereof, or (B) without payment of a termination fee by the Company, if it becomes regulated as an investment company under the Investment Company Act of 1940, with such termination deemed to occur immediately before such event. Relationship with ACRES Capital Corp. and certain of its Subsidiaries Relationship with ACRES Capital Corp. and certain of its Subsidiaries. The Manager is a subsidiary of ACRES Capital Corp., of which Andrew Fentress, the Company’s Chairman, serves as Managing Partner and Mark Fogel, the Company’s President, Chief Executive Officer and Director, serves as Chief Executive Officer and President. Mr. Fentress and Mr. Fogel are also shareholders and board members of ACRES Capital Corp. Effective on July 31, 2020, the Company has a Management Agreement with the Manager pursuant to which the Manager provides the day-to-day management of the Company’s operations and receives management fees. For the years ended December 31, 2022, 2021 and 2020 , the Manager earned base management fees of $ 6.7 million, $ 6.1 million and $ 2.2 million, respectively. For the year ended December 31, 2022 , the Manager earned incentive management fees of $ 340,000 , of which $ 170,000 was payable at year end in cash and $ 170,000 was payable at year end in common stock. No incentive compensation was earned or payable at year end for the years ended December 31, 2021 and 2020. At December 31, 2022 and 2021 , $ 558,000 and $ 561,000 , respectively, of base management fees were payable by the Company to the Manager. The Manager and its affiliates provided the Company with a Chief Financial Officer and a sufficient number of additional accounting, finance, tax and investor relations professionals. The Company reimbursed the Manager’s expenses for (a) the wages, salaries and benefits of the Chief Financial Officer, and (b) a portion of the wages, salaries and benefits of accounting, finance, tax and investor relations professionals, in proportion to such personnel’s percentage of time allocated to the Company’s operations. The Company reimbursed out-of-pocket expenses and certain other costs incurred by the Manager that related directly to the Company’s operations. For the years ended December 31, 2022, 2021 and 2020 , the Company reimbursed the Manager $ 5.1 million, $ 4.7 million and $ 1.8 million, respectively, for all such compensation and costs. At December 31, 2022 and 2021 , the Company had payables to the Manager pursuant to the Management Agreement totaling $ 179,000 and $ 1.2 million, respectively, related to such compensation and costs. The Company’s base management fee payable and expense reimbursements payable were recorded in management fee payable and accounts payable and other liabilities on the consolidated balance sheets, respectively. On July 31, 2020, ACRES RF, a direct, wholly owned subsidiary of the Company, provided a $ 12.0 million loan (the “ACRES Loan”) to ACRES Capital Corp. evidenced by the Promissory Note from ACRES Capital Corp. The ACRES Loan accrues interest at 3.00 % per annum payable monthly. The monthly amortization payment is $ 25,000 . The ACRES Loan matures in July 2026 , subject to two one-year extensions (at ACRES Capital Corp.’s option) subject to the payment of a 0.5 % extension fee to ACRES RF on the outstanding principal amount of the ACRES Loan. During the years ended December 31, 2022, 2021 and 2020 , the Company recorded interest income of $ 348,000 , $ 357,000 and $ 153,000 , respectively, on the ACRES Loan in other income on the consolidated statements of operations. At December 31, 2022 and 2021 , the ACRES Loan had a principal balance of $ 11.3 million and $ 11.6 million recorded in loan receivable - related party on the consolidated balance sheets. At December 31, 2022 and 2021 , the ACRES loan had no interest receivable. During the year ended December 31, 2022, the Company originated one CRE whole loan with a par value of $ 38.6 million that was refinanced from a loan originated by affiliates of the Manager. The Company did no t originate any loans that were refinanced from loans originated by affiliates of the Manager during the year ended December 31, 2021. During the year ended December 31, 2022, the Company acquired 100 % equity in one property for $ 38.6 million, that previously served as collateral for a loan held by an affiliate of the Manager prior to the acquisition. During the year ended December 31, 2021, the Company acquired 100 % equity in one property for $ 14.2 million, which previously served as collateral for a loan held by an affiliate of the Manager prior to the acquisition. At December 31, 2022 , the Company retained equity in two securitization entities that were structured for the Company by the Manager. Under the Management Agreement, the Manager was not separately compensated by the Company for executing this transaction and was not separately compensated for managing the securitization entity and its assets. During the year ended December 31, 2022, the Company co-originated and entered into joint funding agreements with ACRES Loan Origination, LLC, an affiliate of ACRES Capital Corp. and the Manager, on four loan originations, with total initial fundings of $ 97.2 million. Relationship with ACRES Capital Servicing LLC. Under the MassMutual Loan Agreement, ACRES Capital Servicing LLC (“ACRES Capital Servicing”), an affiliate of ACRES Capital Corp. and the Manager, serves as the portfolio servicer. Additionally, ACRES Capital Servicing served as the special servicer of XAN 2019-RSO7, XAN 2020-RSO8, and XAN 2020-RSO9 and serves as special servicer of ACR 2021-FL1, and ACR 2021-FL2. During the years ended December 31, 2022, 2021 and 2020 , ACRES Capital Servicing received no portfolio servicing fees. During the years ended December 31, 2022 and 2021, ACRES Capital Servicing earned $ 74,000 and $ 14,000 , respectively, in special servicing fees, of which $ 51,000 and $ 14,000 were recorded as a reduction to interest income in the consolidated statements of operations. During the year ended December 31, 2020 , ACRES Capital Servicing earned no special servicing fees. Relationship with ACRES Collateral Manager, LLC. ACRES Collateral Manager, LLC, an affiliate of ACRES Capital Corp. and the Manager, serves as the collateral manager of ACR 2021-FL1 and ACR 2021-FL2, a role for which it waived its fee. Relationship with ACRES Development Management, LLC. ACRES Development Management, LLC (“DevCo”) is a wholly owned subsidiary of ACRES Capital Corp., the parent of the Manager. DevCo acts in various capacities as a co-developer or owner’s representative for direct equity investments within the Company’s portfolio. In November 2021, December 2021 and April 2022, the joint venture entities of the three CRE equity investments acquired through direct investment entered into development agreements with DevCo (the “Development Agreements”). Pursuant to the Development Agreements, DevCo agreed to manage the development of the projects associated with each equity investment in accordance with a development standard in exchange for fees equal to between 1.25 % and 1.5 % of all project costs. During the year ended December 31, 2022 , $ 22,000 in fees were earned by DevCo for services rendered under the Development Agreements. No fees were incurred or paid to DevCo for services rendered under the Development Agreements during the year ended December 31, 2021. Relationship with ACRES Share Holdings, LLC. In June 2021, the Company’s Manager Plan was approved by its shareholders, which authorized up to 1,100,000 shares of common stock for issuance to the Manager (less shares of common stock issued or subject to awards under the Omnibus Plan). For each of the years ended December 31, 2022 and 2021, ACRES Share Holdings, LLC, an affiliate of ACRES Capital Corp. and the Manager, was granted 299,999 shares. These shares will vest 25 % for four years , on each anniversary of the issuance date. Subsequent to year end, the Company issued 17,780 shares that were payable to the Manager under the incentive management fee noted above. See Note 14 for additional details. Relationship with C-III and certain of its Subsidiaries Relationship with C-III and certain of its Subsidiaries. Prior to July 31, 2020, the Company had a management agreement with the Prior Manager pursuant to which the Prior Manager provided the day-to-day management of the Company’s operations and received substantial fees. For the year ended December 31, 2020, the Prior Manager earned base management fees of $ 3.8 million. The Prior Manager did no t earn incentive compensation for the year ended December 31, 2020. The Company reimbursed out-of-pocket expenses and certain other costs incurred by the Prior Manager and its affiliates that related directly to the Company’s operations. For the year ended December 31, 2020, the Company reimbursed the Prior Manager $ 4.1 million for all such compensation and costs. In May 2019, ACRES RF entered into a Mortgage Loan Sale and Purchase Agreement (the “May 2019 Loan Acquisition Agreement”) with C-III Commercial Mortgage LLC (“C-III Commercial Mortgage”), a wholly-owned subsidiary of C-III, that provided for the acquisition by ACRES RF of certain CRE loans on a servicing-released basis at par, plus accrued and unpaid interest on each loan for an aggregate purchase price of $ 197.6 million. In accordance with the terms of the May 2019 Loan Acquisition Agreement, C-III Commercial Mortgage retains its title to all exit fees in excess of 0.50 % of the outstanding principal balance. During the year ended December 31, 2021 and 2020 , C-III Commercial Mortgage earned $ 361,000 and $ 74,000 , respectively, in exit fees. C-III and its subsidiaries ceased being a related party as of July 31, 2020. Relationship with Resource Real Estate Opportunity REIT In July 2020, ACRES and the Company entered into agreements with Resource America pursuant to which Resource America provided office space and other office-related services as well as performed an internal audit program. In September 2020, the sublease was assigned from Resource America to Resource Real Estate Opportunity REIT and the internal audit engagement letter was assigned from Resource America to Resource NewCo LLC, a subsidiary of Resource Real Estate Opportunity REIT. A former non-employee director of the Company was an executive at, and a director of, Resource Real Estate Opportunity REIT. During the years ended December 31, 2021 and 2020, the Company incurred $ 67,000 and $ 45,000 , respectively, of expenses in connection with these agreements. The Company had no payables to Resource Real Estate Opportunity REIT at December 31, 2021. These agreements were terminated as of March 31, 2021 . Resource America and its subsidiaries ceased being related party as of June 2021. |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | NOTE 19 - FAIR VALUE OF FINANCIAL INSTRUMENTS The Company had no financial instruments carried at fair value on a recurring basis at either December 31, 2022 or 2021. In October 2021, the Company received the deed in lieu of foreclosure on a property that formerly collateralized a CRE whole loan. The property was appraised and determined to have a fair value of $ 17.6 million at the time of acquisition. The Company is required to disclose the fair value of financial instruments for which it is practicable to estimate that value. The fair values of the Company’s short-term financial instruments such as cash and cash equivalents, restricted cash, accrued interest receivable, principal paydowns receivable, accrued interest payable and distributions payable approximate their carrying values on the consolidated balance sheets. The fair values of the Company’s assets and liabilities are estimated as follows: CRE whole loans. The fair values of the Company’s loans held for investment are measured by discounting the expected future cash flows using the current interest rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities. Par values of loans with variable interest rates are expected to approximate fair value unless evidence of credit deterioration exists, in which case the fair value approximates the par value less the loan’s allowance estimated through individual evaluation. Fair values of loans with fixed rates are calculated using the net present values of future cash flows, discounted at market rates. The Company’s floating-rate CRE loans had interest rates from 7.03 % to 12.67 % and 3.01 % to 9.00 % at December 31, 2022 and 2021, respectively. CRE mezzanine loan. Historically, this was measured by discounting the expected remaining cash flows using the current interest rates at which similar instruments would be originated for the same remaining maturity. The Company’s mezzanine loan was discounted at a rate of 10.00 %. The Company's mezzanine loan had no carrying or fair value at December 31, 2022. Loan receivable- related party . This is estimated using a discounted cash flow model. Senior notes in CRE securitizations. These are estimated using a discounted cash flow model with implied yields based on trades for similar securities. Senior secured financing facility, warehouse financing facilities and mortgage payable. These are variable rate debt instruments indexed to either LIBOR or Term SOFR that reset periodically and, as a result, their carrying value approximates their fair value, excluding deferred debt issuance costs. 4.50% Convertible Senior Notes. This is determined using a discounted cash flow model that discounts the issuance’s contractual future cash flows using the current interest rate on similar debt issuances with similar terms and similar remaining maturities that do not have a conversion option. 5.75% Senior Unsecured Notes and Junior subordinated notes . These are estimated by using a discounted cash flow model. The fair values of the Company’s financial and non-financial instruments that are not reported at fair value on the consolidated balance sheets are reported in the following table (in thousands, except amount in footnotes): Fair Value Measurements Carrying Value Fair Value Quoted Prices in Active Markets for Identical Assets of Liabilities Significant Other Observable Inputs Significant Unobservable Inputs At December 31, 2022: Assets: CRE whole loans $ 2,038,787 $ 2,065,504 $ — $ — $ 2,065,504 Loan receivable - related party 11,275 9,672 — — 9,672 Liabilities: Senior notes in CRE securitizations 1,233,556 1,179,313 — — 1,179,313 Senior secured financing facility 87,890 91,549 — — 91,549 Warehouse financing facilities 328,288 330,848 — — 330,848 Mortgage payable 18,244 18,710 — — 18,710 5.75 % Senior Unsecured Notes 147,507 138,435 — — 138,435 Junior subordinated notes 51,548 35,821 — — 35,821 At December 31, 2021: Assets: CRE whole loans $ 1,869,301 $ 1,889,499 $ — $ — $ 1,889,499 CRE mezzanine loan 4,445 4,700 — — 4,700 Loan receivable - related party 11,575 10,407 — — 10,407 Liabilities: Senior notes in CRE securitizations 1,466,499 1,473,893 — — 1,473,893 Warehouse financing facilities 66,771 68,905 — — 68,905 4.50 % Convertible Senior Notes 86,431 87,873 — — 87,873 5.75 % Senior Unsecured Notes (1) 146,607 148,125 — — 148,125 Junior subordinated notes 51,548 41,424 — — 41,424 (1) Carrying value includes deferred debt issuance costs of $ 307,000 from the redeemed 12.00% Senior Unsecured Notes. |
MARKET RISK AND DERIVATIVE INST
MARKET RISK AND DERIVATIVE INSTRUMENTS | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
MARKET RISK AND DERIVATIVE INSTRUMENTS | NOTE 20 - MARKET RISK AND DERIVATIVE INSTRUMENTS The Company is affected by changes in certain market conditions. These changes in market conditions may adversely impact the Company’s financial performance and are referred to as “market risks.” When deemed appropriate, the Company used derivatives as a risk management tool to mitigate the potential impact of certain market risks. The primary market risks managed by the Company through the use of derivative instruments were interest rate risk and market price risk. The Company also historically managed its interest rate risk with interest rate swaps. Interest rate swaps are contracts between two parties to exchange cash flows based on specified underlying notional amounts, assets and/or indices. The Company seeks to manage the extent to which net income changes as a function of changes in interest rates by matching adjustable-rate assets with variable-rate borrowings. The Company classified its interest rate swap contracts as cash flow hedges, which are hedges that eliminate the risk of changes in the cash flows of a financial asset or liability. The Company terminated all of its interest rate swap positions associated with its financed CMBS portfolio in April 2020. At termination, the Company realized a loss of $ 11.8 million. At December 31, 2022 and 2021, the Company had losses of $ 6.6 million and $ 8.5 million, respectively, recorded in accumulated other comprehensive loss, which will be amortized into earnings over the remaining life of the debt. During the years ended December 31, 2022, 2021 and 2020, the Company recorded amortization expense, reported in interest expense on the consolidated statements of operations, of $ 1.8 million , $ 1.9 million and $ 1.3 million, respectively. At December 31, 2022 and 2021, the Company had an unrealized gain of $ 256,000 and $ 347,000 , respectively, attributable to two terminated interest rate swaps in accumulated other comprehensive loss on the consolidated balance sheets, to be accreted into earnings over the remaining life of the debt. The Company recorded accretion income, reported in interest expense on the consolidated statements of operations, of $ 91,000 , $ 91,000 and $ 92,000 into earnings during the years ended December 31, 2022, 2021 and 2020, respectively. The Company’s prior origination of fixed-rate CRE whole loans exposed it to market pricing risk in connection with the fluctuations of market interest rates. As market interest rates increase or decrease, the fair value of the fixed-rate CRE whole loans will decrease or increase accordingly. In order to mitigate this market price risk, the Company entered into interest rate swap contracts in which it pays a fixed rate of interest in exchange for a variable rate of interest, usually three-month LIBOR. Unrealized gains and losses on the value of these swap contracts were recorded in other income (expense) on the consolidated statements of operations. In December 2020, these interest rate swap contracts were terminated. The following table presents the effect of the derivative instruments on the consolidated statements of operations during the years ended December 31, 2022, 2021 and 2020: Realized and Unrealized Gain (Loss) (1) Consolidated Statements of Operations Location Year Ended December 31, 2022 Year Ended December 31, 2021 Year Ended December 31, 2020 Interest rate swap contracts, hedging Interest expense $ ( 1,733 ) $ ( 1,851 ) $ ( 1,562 ) Interest rate swap contracts Other (expense) income $ — $ — $ ( 10 ) (1) Negative values indicate a decrease to the associated consolidated statements of operations line items. |
OFFSETTING OF FINANCIAL ASSETS
OFFSETTING OF FINANCIAL ASSETS AND LIABILITIES | 12 Months Ended |
Dec. 31, 2022 | |
Offsetting [Abstract] | |
OFFSETTING OF FINANCIAL ASSETS AND LIABILITIES | NOTE 21 - OFFSETTING OF FINANCIAL ASSETS AND LIABILITIES The following table presents a summary of the Company’s offsetting of financial liabilities and derivative liabilities (in thousands, except amounts in footnotes): (i) (ii) (iii) = (i) - (ii) (iv) of Recognized Consolidated Consolidated Financial (1) Cash Collateral (v) = (iii) - (iv) At December 31, 2022: Warehouse financing facilities (2) $ 328,288 $ — $ 328,288 $ 328,288 $ — $ — At December 31, 2021: Warehouse financing facilities (2) $ 66,771 $ — $ 66,771 $ 66,771 $ — $ — (1) Amounts represent financial instruments pledged that are available to be offset against liability balances associated with term warehouse financing facilities, repurchase agreements and derivatives. (2) The combined fair value of securities and loans pledged against the Company’s various warehouse financing facilities and repurchase agreements was $ 453.6 million and $ 102.0 million at December 31, 2022 and 2021 , respectively. All balances associated with warehouse financing facilities are presented on a gross basis on the Company’s consolidated balance sheets. Certain of the Company’s warehouse financing facilities are governed by underlying agreements that generally provide for a right of offset in the event of default or in the event of a bankruptcy of either party to the transaction. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 22 - INCOME TAXES The following table details the components of income taxes at the Company’s TRSs (in thousands): Years Ended December 31, 2022 2021 2020 Income tax (benefit) expense: Current: Federal $ — $ — $ — State 13 — — Total current 13 — — Deferred: Federal — — — State — — — Total deferred — — — Total $ 13 $ — $ — A reconciliation of the income tax expense based upon the statutory tax rate to the effective income tax rate was as follows for the Company’s TRSs for the years presented (in thousands): Years Ended December 31, 2022 2021 2020 Income tax (benefit) expense: Statutory tax $ ( 178 ) $ ( 66 ) $ ( 37 ) State and local taxes, net of federal benefit 313 ( 59 ) ( 3,353 ) True-up of prior period tax expense — — — Valuation allowance ( 64 ) 125 6,407 Discontinued operations adjustment — — — Other items ( 58 ) — ( 3,017 ) Total $ 13 $ — $ — The components of deferred tax assets and liabilities were as follows for the Company’s TRSs (in thousands): December 31, 2022 2021 Deferred tax assets related to: Federal, state and local loss carryforwards $ 14,018 $ 14,362 Charitable contribution carryforward — 58 Capital loss carryforward 309 327 Equity investments 6,657 6,728 Interest expense limitation 163(j) 527 202 Total deferred tax assets 21,511 21,677 Valuation allowance ( 21,171 ) ( 21,360 ) Total deferred tax assets, net of valuation allowance $ 340 $ 317 Deferred tax liabilities related to: Amortization of intangibles $ ( 254 ) $ ( 260 ) Unrealized gains ( 86 ) ( 57 ) Total deferred tax liabilities $ ( 340 ) $ ( 317 ) Deferred tax assets, net $ — $ — At December 31, 2022 and 2021 , the Company had $ 60.1 million and $ 61.1 million, respectively, of gross federal and $ 1.8 million and $ 1.9 million, respectively, of gross state and local net operating tax loss carryforwards (a collective deferred tax asset of $ 14.0 million and $ 14.4 million , respectively) reported in other assets in the Company’s consolidated balance sheets. The Company also generated a gross capital loss carryforward of $ 1.0 million (tax effected expense of $ 309 ,000 at December 31, 2022) in 2021 and 2020. Due to changes in management’s focus regarding the non-core asset classes, the Company determined that it no longer expected to have sufficient forecasted taxable income to completely realize the tax benefits of the deferred tax assets at December 31, 2022 and 2021. Therefore, a full valuation allowance with a tax effected expense of $ 21.2 million and $ 21.4 million has been recorded against the deferred tax asset at December 31, 2022 and 2021, respectively. Management will continue to assess its estimate of the amount of deferred tax assets that the Company will be able to utilize. The Company is subject to examination by the Internal Revenue Service for calendar years including and subsequent to 2019, and is subject to examination by state and local jurisdictions for calendar years including and subsequent to 2019. |
QUARTERLY RESULTS
QUARTERLY RESULTS | 12 Months Ended |
Dec. 31, 2022 | |
Quarterly Financial Information Disclosure [Abstract] | |
QUARTERLY RESULTS | NOTE 23 - QUARTERLY RESULTS The following is a presentation of the quarterly results of operations: March 31 June 30 September 30 December 31 (unaudited) (unaudited) (unaudited) (unaudited) (in thousands, except per share data) Year ended December 31, 2022: Interest income $ 22,676 $ 27,019 $ 34,065 $ 42,514 Interest expense 14,907 15,745 22,939 28,733 Net interest income $ 7,769 $ 11,274 $ 11,126 $ 13,781 Net income (loss) $ 2,084 $ 5,522 $ 5,486 $ ( 2,666 ) Net income allocated to preferred shares ( 4,855 ) ( 4,856 ) ( 4,855 ) ( 4,856 ) Net loss allocated to non-controlling interest, net of taxes — 24 82 91 Net (loss) income allocable to common shares $ ( 2,771 ) $ 690 $ 713 $ ( 7,431 ) Net (loss) income per common share - basic $ ( 0.30 ) $ 0.08 $ 0.08 $ ( 0.87 ) Net (loss) income per common share - diluted $ ( 0.30 ) $ 0.08 $ 0.08 $ ( 0.87 ) March 31 June 30 September 30 December 31 (unaudited) (unaudited) (unaudited) (unaudited) (in thousands, except per share data) Year ended December 31, 2021: Interest income $ 24,749 $ 25,793 $ 23,986 $ 26,504 Interest expense 13,724 18,702 14,534 14,615 Net interest income $ 11,025 $ 7,091 $ 9,452 $ 11,889 Net income (loss) $ 13,056 $ 13,639 $ ( 4,928 ) $ 12,156 Net income allocated to preferred shares ( 2,588 ) ( 3,568 ) ( 4,877 ) ( 4,854 ) Net income (loss) allocable to common shares $ 10,468 $ 10,071 $ ( 9,805 ) $ 7,302 Net income (loss) per common share - basic $ 1.03 $ 1.04 $ ( 1.03 ) $ 0.77 Net income (loss) per common share - diluted $ 1.03 $ 1.04 $ ( 1.03 ) $ 0.76 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 24 - COMMITMENTS AND CONTINGENCIES The Company may become involved in litigation on various matters due to the nature of the Company’s business activities. The resolution of these matters may result in adverse judgments, fines, penalties, injunctions and other relief against the Company as well as monetary payments or other agreements and obligations. In addition, the Company may enter into settlements on certain matters in order to avoid the additional costs of engaging in litigation. Except as discussed below, the Company is unaware of any contingencies arising from such litigation that would require accrual or disclosure in the consolidated financial statements at December 31, 2022. Primary Capital Mortgage, LLC (“PCM”) is subject to potential litigation related to claims for repurchases or indemnifications on loans that PCM has sold to third parties. At December 31, 2022 and 2021 , no such litigation demand was outstanding. Reserves for such potential litigation demands are included in the reserve for mortgage repurchases and indemnifications that totaled $ 1.2 million and $ 1.3 million at December 31, 2022 and 2021, respectively. The reserves for mortgage repurchases and indemnifications are included in liabilities held for sale on the consolidated balance sheets. The Company did no t have any general litigation reserve at December 31, 2022 or 2021. Other Contingencies As part of the May 2017 sale of its equity interest in Pearlmark Mezzanine Realty Partners IV, L.P., the Company entered into an indemnification agreement pursuant to which the Company agreed to indemnify the purchaser against realized losses of up to $ 4.3 million on one mezzanine loan until its final maturity date in 2020. As a result of the indemnified party’s partial sale of the mezzanine loan, the maximum exposure was reduced to $ 536,000 in 2019. In October 2020, the mezzanine loan paid off its balance to the indemnified party, resulting in the extinguishment of the Company’s liability. PCM is subject to additional claims for repurchases or indemnifications on loans that PCM has sold to investors. At December 31, 2022 and 2021 , outstanding demands for indemnification, repurchase or make whole payments totaled $ 3.3 million. The Company’s estimated exposure for such outstanding claims, as well as unasserted claims, is included in its reserve for mortgage repurchases and indemnifications. Other Guarantees In January 2023, Chapel Drive East, LLC, a wholly owned subsidiary of the FSU Student Venture, entered into a loan agreement (the "Construction Loan Agreement") with Oceanview Life and Annuity Company ("Oceanview") to finance the construction of a student housing complex (the "Construction Loan"). In connection with the Company's investment in the student housing complex, ACRES RF entered into guarantees related to the Construction Loan. Pursuant to the guarantees, Jason Pollack, Frank Dellaglio and ACRES RF (collectively, the "Guarantors"), for the benefit of Oceanview, provided limited "bad boy" guaranties to Oceanview pursuant to the Construction Loan Agreement until the earlier of the payment in full of the indebtedness or the date of a sale of the property pursuant to a foreclosure of the mortgage or deed or other transfer in lieu of foreclosure is accepted by Oceanview. The Guarantors also entered into a Completion Guaranty Agreement for the benefit of Oceanview to guaranty the timely completion of the project in accordance with the Construction Loan Agreement, as well as a Carry Guaranty Agreement, for the benefit of Oceanview to guaranty and unconditional payment by Chapel Drive East, LLC of all customary or necessary costs and expenses incurred in connection with the operation, maintenance and management of the property and an Environmental Indemnity Agreement jointly and severally in favor of Oceanview whereby the Guarantors serving as Indemnitors provided environmental representations and warranties, covenants and indemnifications (collectively the "Guaranties"). The Guaranties include certain financial covenants required of ACRES RF, including required net worth and liquidity requirements. Unfunded Commitments Unfunded commitments on the Company’s originated CRE loans generally fall into two categories: (1) pre-approved capital improvement projects; and (2) new or additional construction costs subject, in each case, to the borrower meeting specified criteria. Upon completion of the improvements or construction, the Company would receive additional interest income on the advanced amount. Whole loans had $ 158.2 million and $ 157.6 million in unfunded loan commitments at December 31, 2022 and 2021 , respectively. Preferred equity investments had $ 2.5 million in unfunded investment commitments at December 31, 2020 and were paid off during the year ended December 31, 2021. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2022 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 25 - SUBSEQUENT EVENTS The Company has evaluated subsequent events through the filing of this report and determined that, except for the subsequent events referred to in Note 7, Note 8, Note 12 and Note 24, there have not been any events that have occurred that would require adjustments to or disclosures in the consolidated financial statements. |
Schedule II Valuation and Quali
Schedule II Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2022 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
SCHEDULE II Valuation and Qualifying Accounts | SCHEDULE II ACRES Commercial Realty Corp. Valuation and Qualifying Accounts (in thousands) Balance at Beginning of Period Adoption of Updated Accounting Guidance Charge to Expense Loans Charged off/Recovered Balance at End of Period Allowance for credit losses: Year Ended December 31, 2022 $ 8,805 $ 12,295 $ ( 2,297 ) $ 18,803 Year Ended December 31, 2021 $ 34,310 $ — $ ( 21,262 ) $ ( 4,243 ) $ 8,805 Year Ended December 31, 2020 $ 1,460 $ 3,032 $ 30,815 $ ( 997 ) $ 34,310 |
Schedule III Real Estate and Ac
Schedule III Real Estate and Accumulated Depreciation | 12 Months Ended |
Dec. 31, 2022 | |
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation Disclosure [Abstract] | |
SCHEDULE III Real Estate and Accumulated Depreciation | SCHEDULE III ACRES Commercial Realty Corp. Real Estate and Accumulated Depreciation (in thousands) Initial Cost to Company Gross Amount of Which Carried at Close of Period Encumbrances Land Buildings and Improvements Costs Capitalized Subsequent to Acquisition - Improvements Land Buildings and Improvements Total Accumulated Depreciation Year of Construction Date Acquired Life on Which Depreciation in Latest Statements of Comprehensive Income is Computed Hotel property, Northeast region (held for sale) (1)(2)(3) $ 19,875 $ — $ 30,944 $ 450 $ — $ 31,394 $ 31,394 $ ( 1,693 ) 2000 November 2020 34.8 years Office property, Northeast region (4) N/A 8,189 4,706 — 8,189 4,706 12,895 ( 488 ) 1999 October 2021 38.6 years Unimproved land, Northeast region N/A 14,171 — 32 14,171 32 14,203 — N/A November 2021 N/A Student housing property, Southeast region (4) 18,710 15,976 19,114 — 15,976 19,114 35,090 ( 391 ) 2003 April 2022 39.1 years Hotel property, East North Central region (3)(4) 20,300 — 51,353 347 — 51,700 51,700 ( 892 ) 1982 April 2022 37.2 years Hotel property, Northeast region (held for sale) (1) N/A — 13,442 36 — 13,478 13,478 — 1999 July 2022 N/A Total $ 58,885 $ 38,336 $ 119,559 $ 865 $ 38,336 $ 120,424 $ 158,760 $ ( 3,464 ) (1) The property is being held for sale and is evaluated at the lower of cost or fair value. (2) The property was acquired through a deed in lieu of foreclosure transaction. (3) The property is included as collateral on our senior secured financing facility. (4) The life on which depreciation in latest statements of comprehensive income is computed was calculated as the weighted average of the useful lives of the building, site improvements and tenant improvements, which comprise the investments in the properties. The following table rolls forward our gross investment in real estate and the related accumulated depreciation (in thousands): Years Ended December 31, 2022 2021 2020 Investments in Real Estate: Balance at beginning of period $ 75,989 $ 30,944 $ — Additions during period: Acquisitions through deed-in-lieu of foreclosure 13,442 17,889 30,944 Other acquisitions 86,444 27,065 — Improvements, etc. 731 134 — Deductions during period: Other ( 17,846 ) ( 43 ) — Balance at close of period $ 158,760 $ 75,989 $ 30,944 Accumulated Depreciation: Balance at beginning of period $ ( 1,204 ) $ ( 112 ) $ — Additions during period: Depreciation expense ( 2,260 ) ( 1,092 ) ( 112 ) Balance at close of period $ ( 3,464 ) $ ( 1,204 ) $ ( 112 ) |
Schedule IV Mortgage Loans on R
Schedule IV Mortgage Loans on Real Estate | 12 Months Ended |
Dec. 31, 2022 | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Abstract] | |
SCHEDULE IV Mortgage Loans on Real Estate | SCHEDULE IV ACRES Commercial Realty Corp. Mortgage Loans on Real Estate At December 31, 2022 (in thousands, except amounts in footnotes) Type of Loan/ Description / Interest (1) Maturity (2) Periodic (3) Prior Face Net (4) Principal CRE whole loans: CRE whole loans in excess of 3% of the carrying amount of total loans Borrower A Multifamily/Rock Hill, SC 1M BR + 3.30 % 0.10 % 2025 I/O — $ 68,397 $ 67,925 $ — CRE whole loans less than 3% of the carrying amount of total loans CRE whole loan (5) Multifamily/ 1M BR + 2.85 % - 5.00 % 0.05 % - 4.32 % 2023 - 2026 I/O — 1,483,538 1,474,330 — CRE whole loan (6)(7) Office/ 1M BR + 3.09 % - 6.00 % 0.10 % - 3.13 % 2023 - 2026 I/O — 273,357 271,738 43,539 CRE whole loan Hotel/ 1M BR + 3.83 % - 8.50 % 0.05 % - 3.02 % 2023 - 2025 I/O — 179,475 178,502 — CRE whole loan Self-Storage/ 1M BR + 3.85 % - 5.50 % 0.10 % - 1.00 % 2024 - 2025 I/O — 52,712 52,370 — CRE whole loan (6) Retail/ 1M BR + 4.65 % 2.05 % I/O — 8,025 8,025 8,025 Total CRE whole loans 2,065,504 2,052,890 51,564 Mezzanine loans: Mezzanine loans less than 3% of the carrying amount of total loans (8)(9) 42,772 4,700 38,072 Total mezzanine loans 42,772 4,700 38,072 Allowance for credit losses ( 18,803 ) Total loans $ 2,108,276 $ 2,038,787 $ 89,636 (1) The benchmark rate, “BR” comprises of the London Interbank Offered Rate (“LIBOR”) and the Term Secured Overnight Financing Rate (“SOFR”), which are used as benchmarks on the Company’s CRE whole loans. Effective June 30, 2023, one-month LIBOR will no longer be published. (2) Maturity dates exclude extension options that may be available to borrower. (3) I/O = interest only (4) The net carrying amount of loans includes an individually determined allowance for credit losses of $ 4.7 million and a general allowance for credit losses of $ 14.1 million at December 31, 2022. (5) Benchmark rates exclude one interest-only multifamily loan with no benchmark floor. (6) Maturity dates exclude two office loans and one retail loan in maturity default at December 31, 2022. (7) Includes three office loans with total par of $ 36.2 million that are amortizing loans. (8) Includes one mezzanine loan with a par of $ 4.7 million that had an individually determined reserve of $ 4.7 million. (9) Includes one mezzanine loan with a par of $ 38.1 million and a carrying value of zero in default at December 31, 2022. The following table reconciles our CRE loans carrying amounts for the periods indicated (in thousands): Years Ended December 31, 2022 2021 2020 Balance at beginning of year $ 1,873,746 $ 1,507,682 $ 1,789,985 Additions during the period: New loans originated or acquired 523,259 1,367,157 263,081 Funding of existing loan commitments 66,296 29,855 34,981 Amortization of loan origination and extension fees and loan origination costs, net 8,189 8,337 5,555 (Provision for) reversal of credit losses, net ( 12,295 ) 21,262 ( 30,815 ) Loans charged-off 2,297 4,243 997 Capitalized interest and loan acquisition costs — 228 1,126 Deductions during the period: Payoff and paydown of loans ( 399,550 ) ( 1,019,616 ) ( 493,968 ) Deed in lieu of foreclosure ( 14,000 ) ( 19,900 ) ( 37,956 ) Capitalized origination and extension fees ( 6,858 ) ( 16,202 ) ( 3,821 ) Loss on discounted payoff ( 2,297 ) — — Cost of loans sold — ( 9,300 ) ( 18,451 ) Cumulative effect of accounting change for adoption of credit loss guidance — — ( 3,032 ) Balance at end of year $ 2,038,787 $ 1,873,746 $ 1,507,682 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the U.S. (“GAAP”). The consolidated financial statements include the accounts of the Company, majority-owned or controlled subsidiaries and VIEs for which the Company is considered the primary beneficiary. All inter-company transactions and balances have been eliminated in consolidation. |
Variable Interest Entities | Variable Interest Entities A VIE is defined as an entity in which equity investors (i) do not have 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. A VIE is required to be consolidated by its primary beneficiary, which is defined as the party that (a) has the power to control the activities that most significantly impact the VIE’s economic performance and (b) has the obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. The Company considers the following criteria in determining whether an entity is a VIE: 1. The equity investment at risk is not sufficient to permit the entity to finance its activities without additional subordinated financial support provided by any parties, including the equity holders. 2. The equity investors lack one or more of the following essential characteristics of a controlling financial interest. a. The direct ability to make decisions about the entity’s activities through voting rights or similar rights. b. The obligation to absorb the expected losses of the entity. c. The right to receive the expected residual returns of the entity. The equity investors have voting rights that are not proportionate to their economic interests, and the activities of the entity involve or are conducted on behalf of an investor with a disproportionately small voting interest. In determining whether the Company is the primary beneficiary of a VIE, the Company reviews governing contracts, formation documents and any other contractual arrangements for any relevant terms and determines the activities that have the most significant impact on the VIE and who has the power to direct those activities. The Company also looks for kick-out rights, protective rights and participating rights as well as any financial or other support provided to the VIE and the reason for that support, and the terms of any explicit or implicit arrangements that may require the Company to provide future support. The Company then makes a determination based on its power to direct the most significant activities of the VIE and/or a financial interest that is potentially significant. In instances when a VIE is owned by both the Company and related parties, the Company considers whether there is a single party in the related party group that meets both the power and losses or benefits criteria on its own as though no related party relationship existed. If one party within the related party group meets both these criteria, such reporting entity is the primary beneficiary of the VIE and no further analysis is needed. If no party within the related party group on its own meets both the power and losses or benefits criteria, but the related party group as a whole meets these two criteria, the determination of primary beneficiary within the related party group is based upon an analysis of the facts and circumstances with the objective of determining which party is most closely associated with the VIE. Determining the primary beneficiary requires significant judgment. The Company continuously analyzes entities in which it holds variable interests, including when there is a reconsideration event, to determine whether such entities are VIEs and whether such potential VIEs should be consolidated or deconsolidated. |
Voting Interest Entities | Voting Interest Entities A voting interest entity is an entity in which the total equity investment at risk is sufficient to enable it to finance its activities independently and the equity holders have the power to direct the activities of the entity that most significantly impact its economic performance, the obligation to absorb the losses of the entity and the right to receive the residual returns of the entity. The usual condition for a controlling financial interest in a voting interest entity is ownership of a majority voting interest. If the Company has a majority voting interest in a voting interest entity, the entity will generally be consolidated. The Company does not consolidate a voting interest entity if there are substantive participating rights by other parties and/or kick-out rights by a single party or through a simple majority vote. The Company performs on-going reassessments of whether entities previously evaluated under the voting interest framework have become VIEs, based on certain events, and therefore subject to the VIE consolidation framework. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and within the period of financial results. Actual results could differ from those estimates. Estimates affecting the accompanying consolidated financial statements include but are not limited to the net realizable and fair values of the Company’s investments and derivatives, the estimated useful lives used to calculate depreciation, the expected lives over which to amortize premiums and accrete discounts, provisions for or reversals of expected credit losses and the disclosure of contingent liabilities. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include cash on hand and all highly liquid investments with original maturities of three months or less at the time of purchase. At December 31, 2022 and 2021 , $ 63.3 million and $ 33.3 million, respectively, of the reported cash balances exceeded the Federal Deposit Insurance Corporation and Securities Investor Protection Corporation deposit insurance limits of $250,000 per respective depository or brokerage institution. However, all of the Company’s cash deposits are held at multiple, established financial institutions, in multiple accounts associated with its parent and respective consolidated subsidiaries, to minimize credit risk exposure. Restricted cash includes required account balance minimums as well as cash held for primarily for the Company’s CRE debt securitizations as well as cash held in the CRE debt securitizations and the syndicated corporate loan collateralized debt obligations (“CDOs”). The following table provides a reconciliation of cash, cash equivalents and restricted cash on the consolidated balance sheets to the total amount shown on the consolidated statements of cash flows (in thousands): December 31, 2022 2021 Cash and cash equivalents $ 66,232 $ 35,500 Restricted cash 38,579 248,431 Total cash, cash equivalents and restricted cash shown on the Company’s consolidated statements of cash flows $ 104,811 $ 283,931 |
Investment in Unconsolidated Entities | Investment in Unconsolidated Entities The Company’s non-controlling investments in unconsolidated entities are included in investments in unconsolidated entities on the consolidated balance sheets and are accounted for under the cost method. Under the cost method, the Company records dividend income when declared to the extent it is not considered a return of capital, which is recorded as a reduction of the cost of the investment. |
Loans and Loan Interest Income Recognition | Loans The Company acquires loans through direct origination and occasionally through purchases from third-parties and had historically acquired corporate leveraged loans in the secondary market and through syndications of newly originated loans. Loans are held for investment; therefore, the Company initially records loans at the amount funded for originated loans or at the acquisition price for loans purchased, and subsequently, accounts for them based on their outstanding principal plus or minus unamortized premiums or discounts. The Company may sell a loan held for investment where the credit fundamentals underlying a particular loan have changed in such a manner that the Company’s expected return on investment may decrease. Once the determination has been made by the Company that it no longer will hold the loan for investment, the Company identifies these loans as loans held for sale. Any credit-related write-off considerations prior to the transfer of the loan to loans held for sale are accounted for through the allowance for credit losses on the Company’s consolidated balance sheets. The Company reports its loans held for sale at the lower of amortized cost or fair value. To determine fair value, the Company primarily uses appraisals of underlying collateral obtained from third-parties as a practical expedient. Key assumptions used in those appraisals are reviewed by the Company. If there is a material difference between the value provided by the appraiser and information used by the Company to validate the appraisal, the Company will evaluate the difference with the appraiser, which could result in an updated appraisal. The Company may also use the present value of estimated cash flows, market price, if available, or other determinants of the fair value of the collateral less estimated disposition costs. Any determined changes in the fair value of loans held for sale are recorded in fair value adjustments on financial assets held for sale on the Company’s consolidated statements of operations. Based on a prioritization of inputs used in the valuation of each position, the Company categorizes these investments as either Level 2 or Level 3 in the fair value hierarchy. Loan Interest Income Recognition Interest income on loans includes interest at stated rates adjusted for amortization or accretion of premiums and discounts based on the contractual payment terms of the loan. Premiums and discounts are amortized or accreted into income using the effective yield method. If a loan with a premium or discount is prepaid, the Company immediately recognizes the unamortized portion as a decrease or increase to interest income. In addition, the Company defers loan origination and extension fees and loan origination costs and recognizes them over the life of the related loan against interest income using the straight line method, which approximates the effective yield method. Income recognition is suspended for loans at the earlier of the date at which payments become 90 days past due or when, in the opinion of management, a full recovery of principal and income becomes doubtful. When the ultimate collectability of the principal is in doubt, all payments received are applied to principal under the cost recovery method. On the other hand, when the ultimate collectability of the principal is not in doubt, contractual interest is recorded as interest income when received, under the cash method, until an accrual is resumed when the loan becomes contractually current and performance is demonstrated to be resumed. A loan is written off when it is no longer realizable and/or legally discharged. The Company records interest receivable on its loans in accrued interest receivable on its consolidated balance sheets. The Company analyzes the interest receivable balances on a timely basis, or at least quarterly, to determine if they are uncollectible. If an interest receivable amount is deemed uncollectible, then the Company writes off that uncollectible amount of the interest receivable through a reversal of interest income. |
Preferred Equity Investment | Preferred Equity Investment Historically, the Company invested in preferred equity investments. Preferred equity investments, which are subordinate to any loans but senior to common equity, depending on the investment’s characteristics, could be accounted for as real estate, joint ventures or as mortgage loans. The Company’s preferred equity investments were accounted for as CRE loans held for investment, were carried at cost, net of unamortized loan fees and origination costs, and were included within CRE loans on the Company’s consolidated balance sheets. The Company accreted or amortized any discounts or premiums over the life of the related loan utilizing the effective interest method. Interest and fees were recognized as income subject to recoverability, which was substantiated by obtaining annual appraisals on the underlying property. |
Allowance for Credit Losses | Allowance for Credit Losses The Company maintains an allowance for credit loss on its loans held for investment. Effective January 1, 2020, the Company determines its allowance for credit losses by measuring the current expected credit losses (“CECL”) on the loan portfolio on a quarterly basis. The Company utilizes a probability of default and loss given default methodology together with collateral-specific data for each loan over a reasonable and supportable forecast period after which it reverts to its historical mean loss ratio, utilizing a blended approach sourced from its own historical losses and the market losses from an engaged third party’s database, to be applied for the remaining estimable period. The CECL model requires the Company to make significant judgments, including: (i) the selection of a reasonable and supportable forecast period, (ii) the selection and weighting of appropriate macroeconomic forecast scenarios, (iii) projections for the amounts and timing of future fundings of committed balances and prepayments on CRE investments, (iv) the determination of the risk characteristics in which to pool financial assets, and (v) the appropriate historical loss data to use in the model. Unfunded commitments are not considered in the CECL reserve if they are unconditionally cancellable by the Company. The Company measures the loan portfolio’s credit losses by grouping loans based on similar risk characteristics under CECL, which is typically based on the loan’s collateral type. The Company regularly evaluates the risk characteristics of its loan portfolio to determine whether a different pooling methodology is more accurate. Further, if the Company determines that foreclosure of a loan’s collateral is probable or repayment of the loan is expected through sale or operation of the collateral and the borrower is experiencing financial difficulty, expected credit losses are measured as the difference between the current fair value of the collateral and the amortized cost of the loan. Fair value may be determined based on (i) the present value of estimated cash flows; (ii) the market price, if available; or (iii) the fair value of the collateral less estimated disposition costs. While a loan exhibiting credit quality deterioration may remain on accrual status, the loan is placed on non-accrual status at such time as (i) management believes that scheduled debt service payments will not be met within the coming 12 months; (ii) the loan becomes 90 days past due; (iii) management determines the borrower is incapable of, or has ceased efforts toward, curing the cause of the credit deterioration; or (iv) the net realizable value of the loan’s underlying collateral approximates the Company’s carrying value for such loan. While on non-accrual status, the Company recognizes interest income only when an actual payment is received if a credit analysis supports the borrower’s principal repayment capacity. When a loan is placed on non-accrual, previously accrued and uncollected interest is reversed from interest income. The Company utilizes the contractual life of its loans to estimate the period over which it measures expected credit losses. Estimates for prepayments and extensions are incorporated into the inputs for the Company’s CECL model. Modifications to loan terms, such as a modification in connection with a troubled debt restructuring (“TDR”), where a concession is granted to a borrower experiencing financial difficulty, may result in the extension of the loan’s life and an increase in the allowance for credit losses. In March 2020, the Financial Accounting Standards Board (“FASB”) concurred with a joint statement of federal and state banking regulators that eased the requirements to classify a modification as a TDR if the modification was granted in connection with the effects of the COVID-19 pandemic. If the concession granted on a TDR can only be captured through a discounted cash flow analysis, then the Company will individually assess the loan for expected credit losses using the discounted cash flow method. In order to calculate the historical mean loss ratio applied to the loan portfolio, the Company utilizes historical losses from its full underwriting history, along with the market loss history of a selected population of loans from a third party’s database that are similar to the Company’s loan types, loan sizes, durations, interest rate structure and general loan-to-collateral value (“LTV”) profiles. The Company may make adjustments to the historical loss history for qualitative or environmental factors if it believes there is evidence that the estimate for expected credit losses should be increased or decreased. The Company records write-offs against the allowance for credit losses if it deems that all or a portion of a loan’s balance is uncollectible. If the Company receives cash in excess of some or all of the amounts it previously wrote off, it records the recovery by increasing the allowance for credit losses. As part of the evaluation of the loan portfolio, the Company assesses the performance of each loan and assigns a risk rating based on the collective evaluation of several factors, including but not limited to: collateral performance relative to underwritten plan, time since origination, current implied and/or re-underwritten LTV ratios, risk inherent in the loan structure and exit plan. Loans are rated “1” through “5,” from the least risk to the greatest risk, in connection with this review. Prior to the implementation of CECL, the Company calculated its allowance for credit losses through the calculation of general and specific reserves. The general reserve, established for loans not determined to be impaired individually, was based on the Company’s loan risk ratings. The Company recorded a general reserve equal to 1.5 % of the aggregate face values of loans with a risk rating of “3,” plus 5.0 % of the aggregate face values of loans with a risk rating of “4.” Loans with a risk rating of “5” were individually measured for impairment to be included in a specific reserve on a quarterly basis. |
Operating Revenue at Properties | Operating Revenue at Properties Through its investments in real estate, the Company earns revenue associated with rental operations and hotel operations, which are presented in real estate income on the consolidated statements of operations. The Company’s rental operating revenue consists of fixed contractual base rent arising from tenant leases at the Company’s office and student housing properties under operating leases. Revenue is recognized on a straight-line basis over the non-cancelable terms of the related leases. For leases that have fixed and measurable rent escalations, the difference between such rental income earned and the cash rent due under the provisions of the lease is recorded in the Company’s consolidated balance sheets. The Company moves to cash basis operating lease income recognition in the period in which collectability of all lease payments is no longer considered probable. At such time, any uncollectible receivable balance will be written off. Hotel operating revenue consists of amounts derived from hotel operations, including room sales and other hotel revenues. The Company recognizes hotel operating revenue when guest rooms are occupied, services have been provided or fees have been earned. Revenues are recorded net of any sales, occupancy or other taxes collected from customers on behalf of third parties. The following provides additional detail on room revenue and other operating revenue: • Room revenue is recognized when the Company’s hotel satisfies its performance obligation of providing a hotel room. The hotel reservation defines the terms of the agreement including an agreed-upon rate and length of stay. Payment is typically due and paid in full at the end of the stay with some customers prepaying for their rooms prior to the stay. Payments received from a customer prior to arrival are recorded as an advance deposit and are recognized as revenue at the time of occupancy. • Other operating revenue is recognized at the time when the goods or services are provided to the customer or when the performance obligation is satisfied. Payment is due at the time that goods or services are rendered or billed. |
Investment in Real Estate | Investment in Real Estate The Company acquires investments in real estate through direct equity investments and as a result of its lending activities (i.e. through foreclosure or the receipt of the deed-in-lieu of foreclosure on a property). Acquired investments in real estate assets are recorded initially at fair value in accordance with U.S. GAAP. The Company allocates the purchase price of its acquired assets and assumed liabilities based on the relative fair values of the assets acquired and liabilities assumed. The Company accounts for leases that it acquires as operating leases. The Company evaluates whether property obtained as a result of its lending activities should be identified as held for sale. If a property is determined to be held for sale, all of the acquired assets and assumed liabilities will be recorded in property held for sale on the consolidation balance sheet and recorded at the lower of cost or fair value, see the “Assets and Liabilities Held for Sale” section below. Once a property is classified as held for sale, depreciation expense is no longer recorded. Investments in real estate are carried net of accumulated depreciation. The Company depreciates real property, building and tenant improvements and furniture, fixtures, and equipment using the straight-line method over the estimated useful lives of the assets unless the asset is designated as held for sale. The Company amortizes any acquired intangible assets using the straight-line method over the estimated useful lives of the intangible assets. The Company amortizes the value allocated to lease right of use assets and related in-place lease liabilities, when determined to be operating leases, using the straight-line method over the remaining lease term. The value allocated to any associated above or below market lease intangible asset or liability is amortized to lease expense over the remaining lease term. Ordinary repairs and maintenance are expensed as incurred. Costs related to the improvement of the real property are capitalized and depreciated over their useful lives. Costs related to the development and construction of real property are capitalized to Construction in Progress during the period beginning with the commencement of development and ending with the completion of construction. The Company depreciates investments in real estate and amortizes intangible assets over the estimated useful lives of the assets as follows: Category Term Building 35 to 40 years Building improvements 8 to 35 years Site improvements 10 years Tenant improvements Shorter of lease term or expected useful life Furniture, fixtures and equipment 3 to 12 years Right of use assets 7 to 94 years Intangible assets 90 days to 18 years Lease liabilities 7 to 94 years |
Leases | Leases The value of the operating leases are determined through the discounted cash flow method and are recognized on the consolidated balance sheets as offsetting right of use assets and lease liabilities. The operating lease for the Company’s office space is amortized over the lease term, or seven years , using the effective-interest method. The Company’s operating lease for office equipment is amortized over the lease term, or three years , using the straight-line method. |
Assets and Liabilities Held for Sale | Assets and Liabilities Held for Sale The Company classifies long-lived assets or a disposal group to be sold as held for sale in the period in which all of the following criteria are met: • management, having the authority to approve the action, commits to a plan to sell the asset or the disposal group; • the asset or disposal group is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such assets; • an active program to locate a buyer and other actions required to complete the plan to sell the asset or disposal group have been initiated; • the sale of the asset or disposal group is probable, and transfer of the asset or disposal group is expected to qualify for recognition as a completed sale within one year, except if events or circumstances beyond the Company’s control extend the period of time required to sell the asset or disposal group beyond one year; • the asset or disposal group is being actively marketed for sale at a price that is reasonable in relation to its current fair value; and • actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. A long-lived asset or disposal group that is classified as held for sale is initially measured at the lower of its cost or fair value less any costs to sell. Any loss resulting from the transfer of long-lived assets or disposal groups to assets held for sale is recognized in the period in which the held for sale criteria are met. The fair values of assets held for sale are assessed each reporting period and changes in such fair values are reported as an adjustment to the carrying value of the asset or disposal group with an offset to fair value adjustments on financial assets held for sale on the Company’s consolidated statements of operations, to the extent that any subsequent changes in fair value do not exceed the cost basis of the asset or disposal group. Additionally, upon determining that a long-lived asset or disposal group meets the criteria to be classified as held for sale, the Company reports the assets and liabilities of the disposal group, if material, in the line items assets or liabilities held for sale, respectively, on the consolidated balance sheets. |
Discontinued Operations | Discontinued Operations The results of operations of a component or a group of components of the Company that either has been disposed of or is classified as held for sale is reported in discontinued operations if the disposal represents a strategic shift that has or will have a major effect on the Company’s operations and financial results. |
Comprehensive Income (Loss) | Comprehensive Income (Loss) Comprehensive income (loss) for the Company includes net income and the change in net unrealized gains (losses) on available-for-sale securities and derivative instruments that were used to hedge exposure to interest rate fluctuations. |
Income Taxes | Income Taxes The Company operates in such a manner as to qualify as a REIT under the provisions of the Internal Revenue Code of 1986, as amended (the “Code”); therefore, applicable REIT taxable income is included in the taxable income of its shareholders, to the extent distributed by the Company. To maintain REIT status for federal income tax purposes, the Company is generally required to distribute at least 90% of its REIT taxable income to its shareholders as well as comply with certain other qualification requirements as defined under the Code. As a REIT, the Company is not subject to federal corporate income tax to the extent that it distributes 100 % of its REIT taxable income each year. Taxable income, from non-REIT activities managed through the Company’s taxable REIT subsidiaries (“TRSs”), is subject to federal, state and local income taxes. The Company’s TRS’ income taxes are accounted for under the asset and liability method. Under the asset and liability method, deferred income taxes are recognized for the temporary differences between the financial reporting basis and tax basis of assets and liabilities. The Company evaluates the realizability of its deferred tax assets and liabilities and recognizes a valuation allowance if, based on available evidence, it is more likely than not that some or all of its deferred tax assets will not be realized. In evaluating the realizability of the deferred tax asset or liability, the Company will consider the expected future taxable income, existing and projected book to tax differences as well as tax planning strategies. This analysis is inherently subjective, as it is based on forecasted earning and business and economic activity. Changes in estimates of deferred tax asset realizability, if any, are included in income tax (expense) benefit on the consolidated statements of operations. In addition, several of the Company’s foreign TRSs, are organized as exempted companies incorporated with limited liability under the laws of the Cayman Islands. Despite their status as TRSs, they generally will not be subject to corporate tax on their earnings and no provision for income taxes is required. However, because they are either controlled foreign corporations or passive foreign investment companies (in which the Company has made a Qualified Electing Fund election), the Company will generally be required to include its share of current taxable income from the foreign TRSs in its calculation of REIT taxable income. The Company accounts for taxes assessed by a governmental authority that is directly imposed on a revenue-producing transaction (e.g., sales, use, value added) on a net (excluded from revenue) basis. The Company established a full valuation allowance against its net deferred tax asset that was tax effected at $ 21.2 million and $ 21.4 million, at December 31, 2022 and 2021, respectively, as the Company believed it was more likely than not that all of the deferred tax assets would not be realized. This assessment was based on the Company’s cumulative historical losses and uncertainties as to the amount of taxable income that would be generated in future years in its TRSs. The Company evaluates and recognizes tax positions only if it is more likely than not that the position will be sustained upon examination by the appropriate taxing authority. A tax position that meets this threshold is measured as the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement. The Company classifies any tax penalties as other operating expenses and any interest as interest expense. The Company does not have any unrecognized tax benefits that would affect the Company’s financial position. |
Stock Based Compensation | Stock Based Compensation Issuances of restricted stock and options are initially measured at fair value on the grant date and expensed monthly on a straight-line basis over the service period to equity compensation expense on the consolidated statements of operations, with a corresponding entry to additional paid-in capital on the consolidated balance sheets. In accordance with GAAP, the fair value of all unvested issuances of restricted stock and options is not remeasured after the initial grant date. |
Earnings Per Share | Earnings Per Share The Company presents both basic and diluted earnings per share (“EPS”). Basic EPS excludes dilution and is computed by dividing net income (loss) allocable to common shares by the weighted average number of shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock, where such exercise or conversion would result in a lower EPS amount. |
Fair Value Measurements | Fair Value Measurements In analyzing the fair value of its investments accounted for on a fair value basis, the Company uses the fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The Company determines fair value based on quoted prices when available or, if quoted prices are not available, through the use of alternative approaches, such as discounting the expected cash flows using market interest rates commensurate with the credit quality and duration of the investment. The hierarchy defines three levels of inputs that may be used to measure fair value: Level 1 - Quoted prices for identical instruments in active markets. Level 2 - Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value inputs are observable. Level 3 - Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable, for example, when there is little or no market activity for an investment at the end of the period, unobservable inputs may be used. The level in the fair value hierarchy within which a fair value measurement in its entirety falls is based on the lowest level input that is significant to the fair value measurement in its entirety. The determination of where an asset or liability falls in the hierarchy requires significant judgment. The Company evaluates its hierarchy disclosures each quarter; depending on various factors, it is possible that an asset or liability may be classified differently from quarter to quarter. Transfers between levels are determined by the Company at the end of the reporting period. However, the Company expects that changes in classifications between levels will be rare. |
Reference Rate Reform | Reference Rate Reform Historically, the Company has used LIBOR as the benchmark interest rate for its floating-rate whole loans and the Company has been exposed to LIBOR through its floating-rate borrowings. Many of its floating-rate whole loans, CRE securitizations and term warehouse financing facilities included one-month LIBOR as the original contractual benchmark interest rate. The Company's unsecured junior subordinated debentures use three-month LIBOR as the contractual benchmark rate. In March 2021, the United Kingdom’s, or U.K.’s, Financial Conduct Authority (“FCA”) announced that it would cease publication of the one-week and the two-month USD LIBOR immediately after December 31, 2021, and cease publication of the remaining tenors immediately after June 30, 2023. In July 2021, the U.S. Federal Reserve, in conjunction with the Alternative Reference Rates Committee, a steering committee comprising large U.S. financial institutions, has identified Secured Overnight Financing Rate (“SOFR”) as its preferred alternative rate for LIBOR. All variable rate loans originated by the Company beginning January 1, 2022 have been benchmarked to SOFR. Additionally, all of its floating-rate whole loans contain provisions that provide for the transition of the contractual benchmark rate to an alternative rate. At December 31, 2022, the Company's loan portfolio had a carrying valu e of $ 2.0 billion of floating rate loans, 68.3 % or $ 1.4 billion of which have interest rates tied to LIBOR and 31.7 % or $ 646.2 million of which have interest rates tied to SOFR. In September 2021 and January 2022, the term warehouse financing facilities with JPMorgan Chase Bank, N.A. (“JPMorgan Chase”) and Morgan Stanley Mortgage Capital Holdings LLC (“Morgan Stanley”), respectively, were amended to allow for the transition to alternative rates, including rates tied to SOFR, subject to benchmark transition events. Additionally, during the year ended December 31, 2022, the Company entered into a loan agreement to finance the acquisition of a student housing complex, which uses SOFR as its benchmark interest rate. At December 31, 2022, the Company had $ 1.7 billion of floating rate borrowings, 75.8 % or $ 1.3 billion of which have interest rates tied to LIBOR and 24.2 % or $ 419.2 million of which have interest rates tied to SOFR. The Company expects to complete the process of converting its LIBOR-based loans and borrowings to an applicable benchmark interest rate during 2023. |
Recent Accounting Standards | Recent Accounting Standards Accounting Standards Adopted in 2022 In August 2020, the FASB issued guidance that removes certain separation models for convertible debt instruments and convertible preferred stock that require the separation into a debt component and an equity or derivative component. Consequently, a convertible debt instrument will be accounted for as a single liability measured at its amortized cost, if no other features require bifurcation and recognition as derivatives and the convertible instrument is not issued with substantial premiums accounted for as paid-in capital. By removing those separation models, the interest rate of convertible debt instruments typically will be closer to the coupon interest rate. The guidance also revises the derivative scope exception for contracts in an entity’s own equity and improves the consistency of EPS calculations. Adoption did not have a material impact on the Company’s consolidated financial statements. Accounting Standards to be Adopted in Future Periods In March 2022, the FASB issued an amendment eliminating certain previously issued accounting guidance for troubled debt restructurings (“TDRs”) and enhancing disclosure requirements surrounding refinancings, restructurings, and write-offs. Current GAAP provides an exception to general recognition and measurement guidance for loan restructurings if they meet specific criteria to be considered TDRs. If a modification is a TDR, incremental expected losses are recorded in the allowance for credit losses upon modification and specific disclosures are required. The new amendment eliminates the TDR recognition and measurement guidance and requires the reporting entity to evaluate whether the modification represents a new loan or a continuation of an existing loan, consistent with accounting for other loan modifications. The amendment also requires public business entities to disclose current-period gross write-offs by year of origination for certain financing receivables and net investments in leases. For entities that have adopted the previously issued guidance amended by this update, which the Company did during the year ended December 31, 2020, this update is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Early adoption is permitted for entities that have adopted the previously issued guidance amended by this update. The Company is in the process of evaluating the impact of this guidance. |
Reclassifications | Reclassifications Certain reclassifications have been made to the 2020 consolidated financial statements to conform to the 2021 presentation. These reclassifications had no effect on net loss reported. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Reconciliation of cash, cash equivalents and restricted cash | The following table provides a reconciliation of cash, cash equivalents and restricted cash on the consolidated balance sheets to the total amount shown on the consolidated statements of cash flows (in thousands): December 31, 2022 2021 Cash and cash equivalents $ 66,232 $ 35,500 Restricted cash 38,579 248,431 Total cash, cash equivalents and restricted cash shown on the Company’s consolidated statements of cash flows $ 104,811 $ 283,931 |
Schedule of Investments in Real Estate and Amortizes Intangible Assets Over The Estimated Useful Lives of Assets | The Company depreciates investments in real estate and amortizes intangible assets over the estimated useful lives of the assets as follows: Category Term Building 35 to 40 years Building improvements 8 to 35 years Site improvements 10 years Tenant improvements Shorter of lease term or expected useful life Furniture, fixtures and equipment 3 to 12 years Right of use assets 7 to 94 years Intangible assets 90 days to 18 years Lease liabilities 7 to 94 years |
VARIABLE INTEREST ENTITIES (Tab
VARIABLE INTEREST ENTITIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
VIE, Primary Beneficiary | |
Schedule of variable interest entities | The following table shows the classification and carrying values of assets and liabilities of the Company’s Consolidated VIEs at December 31, 2022 (in thousands): CRE Securitizations Other Total ASSETS Restricted cash $ 37,872 $ 308 $ 38,180 Accrued interest receivable 8,184 — 8,184 CRE loans, pledged as collateral (1) 1,456,649 — 1,456,649 Other assets 63 56 119 Total assets (2) $ 1,502,768 $ 364 $ 1,503,132 LIABILITIES Accounts payable and other liabilities $ 93 $ — $ 93 Accrued interest payable 3,083 — 3,083 Borrowings 1,233,556 — 1,233,556 Total liabilities $ 1,236,732 $ — $ 1,236,732 (1) Excludes allowance for credit losses. (2) Assets of each of the Consolidated VIEs may only be used to settle the obligations of each respective VIE. |
VIE, Not Primary Beneficiary | |
Schedule of variable interest entities | The following table shows the classification, carrying value and maximum exposure to loss with respect to the Company’s unconsolidated VIEs at December 31, 2022 (in thousands): Unsecured Junior Subordinated Debentures Maximum Exposure to Loss ASSETS Accrued interest receivable $ 11 $ — Investments in unconsolidated entities 1,548 $ 1,548 Total assets 1,559 LIABILITIES Accrued interest payable 378 N/A Borrowings 51,548 N/A Total liabilities 51,926 Net (liability) asset $ ( 50,367 ) |
SUPPLEMENTAL CASH FLOW INFORM_2
SUPPLEMENTAL CASH FLOW INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule Of Supplemental Cash Flows and Other Significant Noncash Transactions | The following table summarizes the Company’s supplemental disclosure of cash flow information (in thousands): Years Ended December 31, 2022 2021 2020 Supplemental cash flows: Interest expense paid in cash $ 70,025 $ 42,345 $ 44,677 Income taxes paid in cash 228 — — Non-cash operating activities include the following: Acquisition of below-market lease intangible related to the receipt of deed in lieu of foreclosure $ — $ — $ ( 2,490 ) Acquisition of right of use asset related to the receipt of deed in lieu of foreclosure — — ( 3,113 ) Assumption of operating lease related to the receipt of deed in lieu of foreclosure — — 3,113 Acquisition of other right of use assets ( 299 ) ( 479 ) — Assumption of other operating lease liabilities 299 479 — Non-cash investing activities include the following: Investment in property held for sale related to the receipt of deed in lieu of foreclosure $ ( 14,299 ) $ ( 17,600 ) $ — Proceeds from the relinquishment of investment securities available-for-sale — — 369,873 Proceeds from the receipt of deed in lieu of foreclosure on loan 14,299 17,600 39,750 Investment in real estate assets related to the receipt of deed in lieu of foreclosure — — ( 33,924 ) Investment in intangible assets related to the receipt of deed in lieu of foreclosure — — ( 3,336 ) Non-cash financing activities include the following: Repayment of repurchase agreements from the relinquishment of investment securities available-for-sale $ — $ — $ ( 369,873 ) Distributions on preferred stock accrued but not paid 3,262 3,262 1,725 |
RESTRICTED CASH (Tables)
RESTRICTED CASH (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of restricted cash | The following table summarizes the Company’s restricted cash (in thousands): December 31, 2022 2021 Restricted cash: Cash held by consolidated CRE securitizations, CDOs and CLOs $ 38,180 $ 248,071 Restricted cash held in escrow for tax payments 274 — Restricted cash pledged with minimum reserve balance requirements 125 360 Total $ 38,579 $ 248,431 |
LOANS (Tables)
LOANS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Loans Held For Investment [Abstract] | |
Summary of loans held for Investments | The following is a summary of the Company’s loans (dollars in thousands, except amounts in footnotes): Description Quantity Principal Unamortized (Discount) Premium, net (1) Amortized Cost Allowance for Credit Losses Carrying Value Contractual Interest Rates (2) Maturity Dates (3)(4) At December 31, 2022: CRE loans held for investment: Whole loans (5)(6) 81 $ 2,065,504 $ ( 12,614 ) $ 2,052,890 $ ( 14,103 ) $ 2,038,787 1M BR plus 2.85 % to 1M BR plus 8.50 % January 2023 to July 2026 Mezzanine loan (5) 1 4,700 — 4,700 ( 4,700 ) — 10.00 % June 2028 Total CRE loans held for investment $ 2,070,204 $ ( 12,614 ) $ 2,057,590 $ ( 18,803 ) $ 2,038,787 At December 31, 2021: CRE loans held for investment: Whole loans (5)(6) 93 $ 1,891,795 $ ( 13,944 ) $ 1,877,851 $ ( 8,550 ) $ 1,869,301 1M BR plus 2.70 % to 1M BR plus 8.5 0% January 2022 to September 2025 Mezzanine loan (5) 1 4,700 — 4,700 ( 255 ) 4,445 10.00 % June 2028 Total CRE loans held for investment $ 1,896,495 $ ( 13,944 ) $ 1,882,551 $ ( 8,805 ) $ 1,873,746 (1) Amounts include unamortized loan origination fees of $ 12.3 million and $ 13.6 million and deferred amendment fees of $ 308,000 and $ 307,000 at December 31, 2022 and 2021, respectively. Additionally, the amounts include unamortized loan acquisition costs of $ 7,300 at December 31, 2021. At December 31, 2022, the Company had no unamortized loan acquisition costs. (2) Weighted-average one-month benchmark rate (“BR”) floors were 0.68 % and 0.75 % at December 31, 2022 and 2021, respectively. Benchmark rates comprise one-month LIBOR or one-month Term SOFR. At both December 31, 2022 and 2021, all but one of the Company’s floating-rate whole loans had one-month benchmark floors. (3) Maturity dates exclude contractual extension options, subject to the satisfaction of certain terms, that may be available to the borrowers. (4) Maturity dates exclude three whole loans, with amortized costs of $ 51.6 million and $ 27.9 million , in maturity default at December 31, 2022 and 2021, respectively. (5) Substantially all loans are pledged as collateral under various borrowings at December 31, 2022 and 2021. (6) CRE whole loans had $ 158.2 million and $ 157.6 million in unfunded loan commitments at December 31, 2022 and 2021 , respectively. These unfunded loan commitments are advanced as the borrowers formally request additional funding and meet certain benchmarks, as permitted under the applicable loan agreement, and any necessary approvals have been obtained. |
Summary of Contractual Maturities of Commercial Real Estate Loans at Amortized Cost | The following is a summary of the contractual maturities of the Company’s CRE loans held for investment, at amortized cost (in thousands, except amounts in the footnotes): Description 2023 2024 2025 and Thereafter Total At December 31, 2022: Whole loans (1) $ 268,120 $ 882,175 $ 851,031 $ 2,001,326 Mezzanine loan — — 4,700 4,700 Total CRE loans (2) $ 268,120 $ 882,175 $ 855,731 $ 2,006,026 Description 2022 2023 2024 and Thereafter Total At December 31, 2021: Whole loans (1) $ 377,024 $ 230,872 $ 1,242,013 $ 1,849,909 Mezzanine loan — — 4,700 4,700 Total CRE loans (2) $ 377,024 $ 230,872 $ 1,246,713 $ 1,854,609 (1) Maturity dates exclude three whole loans with amortized costs of $ 51.6 million and $ 27.9 million in maturity default at December 31, 2022 and 2021, respectively. (2) At December 31, 2022 , the amortized costs of the CRE whole loans, summarized by contractual maturity assuming full exercise of the extension options, were $ 113.8 million, $ 68.6 million and $ 1.8 billion in 2023, 2024 and 2025 and thereafter, respectively. At December 31, 2021 , the amortized costs of the CRE whole loans, summarized by contractual maturity assuming full exercise of the extension options, were $ 52.0 million, $ 127.6 million and $ 1.7 billion in 2022, 2023 and 2024 and thereafter, respectively. |
FINANCING RECEIVABLES (Tables)
FINANCING RECEIVABLES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
Activity in Allowance for Credit Losses | The following tables show the activity in the allowance for credit losses for the years ended December 31, 2022 and 2021 (in thousands): Years Ended December 31, 2022 2021 Allowance for credit losses at beginning of year $ 8,805 $ 34,310 Provision for (reversal of) credit losses 12,295 ( 21,262 ) Charge offs ( 2,297 ) ( 4,243 ) Allowance for credit losses at end of year $ 18,803 $ 8,805 |
Credit quality indicators for bank loans and commercial real estate loans | The criteria set forth below should be used as general guidelines and, therefore, not every loan will have all of the characteristics described in each category below. Risk Rating Risk Characteristics 1 Property performance has surpassed underwritten expectations. Occupancy is stabilized, the property has had a history of consistently high occupancy, and the property has a diverse and high quality tenant mix. 2 Property performance is consistent with underwritten expectations and covenants and performance criteria are being met or exceeded. Occupancy is stabilized, near stabilized or is on track with underwriting. 3 Property performance lags behind underwritten expectations. Occupancy is not stabilized and the property has some tenancy rollover. 4 Property performance significantly lags behind underwritten expectations. Performance criteria and loan covenants have required occasional waivers. Occupancy is not stabilized and the property has a large amount of tenancy rollover. 5 Property performance is significantly worse than underwritten expectations. The loan is not in compliance with loan covenants and performance criteria and may be in default. Expected sale proceeds would not be sufficient to pay off the loan at maturity. The property has a material vacancy rate and significant rollover of remaining tenants. An updated appraisal is required upon designation and updated on an as-needed basis. All CRE loans are evaluated for any credit deterioration by debt asset management and certain finance personnel on at least a quarterly basis. Mezzanine loans may experience greater credit risks due to their nature as subordinated investments. For the purpose of calculating the quarterly provision for credit losses under CECL, the Company pools CRE loans based on the underlying collateral property type and utilizes a probability of default and loss given default methodology for approximately one year after which it immediately reverts to a historical mean loss ratio. Credit risk profiles of CRE loans at amortized cost were as follows (in thousands, except amounts in the footnote): Rating 1 Rating 2 Rating 3 Rating 4 Rating 5 Total (1) At December 31, 2022: Whole loans, floating-rate $ — $ 1,635,376 309,491 $ 85,226 $ 22,797 $ 2,052,890 Mezzanine loan — — — — 4,700 4,700 Total $ — $ 1,635,376 $ 309,491 $ 85,226 $ 27,497 $ 2,057,590 At December 31, 2021: Whole loans, floating-rate $ — $ 1,456,330 $ 273,078 $ 123,762 $ 24,681 $ 1,877,851 Mezzanine loan — — — 4,700 — 4,700 Total $ — $ 1,456,330 $ 273,078 $ 128,462 $ 24,681 $ 1,882,551 (1) The total amortized cost of CRE loans excluded accrued interest receivable of $ 11.9 million and $ 6.1 million at December 31, 2022 and 2021, respectively. Credit risk profiles of CRE loans by origination year at amortized cost were as follows (in thousands, except amounts in footnotes): 2022 2021 2020 2019 2018 Prior Total (1) At December 31, 2022: Whole loans, floating-rate: (2) Rating 2 $ 526,606 $ 1,003,060 $ 64,944 $ 26,977 $ 13,789 $ — $ 1,635,376 Rating 3 192,490 44,657 27,881 44,463 — 309,491 Rating 4 — — — 20,742 64,484 — 85,226 Rating 5 — — — 22,797 — — 22,797 Total whole loans, floating-rate 526,606 1,195,550 109,601 98,397 122,736 — 2,052,890 Mezzanine loan (rating 5) — — — — 4,700 — 4,700 Total $ 526,606 $ 1,195,550 $ 109,601 $ 98,397 $ 127,436 $ — $ 2,057,590 2021 2020 2019 2018 2017 Prior Total (1) At December 31, 2021: Whole loans, floating-rate: (2) Rating 2 $ 1,230,810 $ 150,513 $ 55,510 $ 19,497 $ — $ — $ 1,456,330 Rating 3 33,781 24,604 136,305 60,888 — 17,500 273,078 Rating 4 — — 28,446 86,096 — 9,220 123,762 Rating 5 — — 22,385 — — 2,296 24,681 Total whole loans, floating-rate 1,264,591 175,117 242,646 166,481 — 29,016 1,877,851 Mezzanine loan (rating 4) — — — 4,700 — — 4,700 Total $ 1,264,591 $ 175,117 $ 242,646 $ 171,181 $ — $ 29,016 $ 1,882,551 (1) The total amortized cost of CRE loans excluded accrued interest receivable of $ 11.9 million and $ 6.1 million at December 31, 2022 and 2021, respectively. (2) Acquired CRE whole loans are grouped within each loan’s year of issuance. The Company had one additional mezzanine loan that was included in assets held for sale, and that loan had no carrying value at December 31, 2022 and 2021 . |
Loan portfolios aging analysis | The following table presents the CRE loan portfolio aging analysis as of the dates indicated for CRE loans at amortized cost (in thousands, except amounts in footnotes): 30-59 Days 60-89 Days Greater than 90 (1) Total Past Due Current (2) Total Loans Receivable (3) Total Loans > 90 Days and Accruing At December 31, 2022: Whole loans, floating-rate $ — $ — $ 28,767 $ 28,767 $ 2,024,123 $ 2,052,890 $ — Mezzanine loan (4) — — — — 4,700 4,700 — Total $ — $ — $ 28,767 $ 28,767 $ 2,028,823 $ 2,057,590 $ — At December 31, 2021: Whole loans, floating-rate $ — $ — $ 19,916 $ 19,916 $ 1,857,935 $ 1,877,851 $ 19,916 Mezzanine loan — — — — 4,700 4,700 — Total $ — $ — $ 19,916 $ 19,916 $ 1,862,635 $ 1,882,551 $ 19,916 (1) During the years ended December 31, 2022, 2021 and 2020 , the Company recognized interest income of $ 1.5 million, $ 2.0 million and $ 2.0 million, respectively, on two loans with principal payments past due greater than 90 days at December 31, 2022. (2) Includes one whole loan with total amortized costs of $ 22.8 million and $ 8.0 million in maturity default at December 31, 2022 and 2021, respectively. (3) The total amortized cost of CRE loans excluded accrued interest receivable of $ 11.9 million and $ 6.1 million at December 31, 2022 and 2021, respectively. (4) Fully reserved at December 31, 2022. |
INVESTMENTS IN REAL ESTATE AN_2
INVESTMENTS IN REAL ESTATE AND OTHER ACQUIRED ASSETS AND ASSUMED LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Investment In Real Estate And Other Acquired Assets And Assumed Liabilities [Abstract] | |
Summary of Acquisition Date Values of Acquired Assets and Assumed Liabilities | The following table summarizes the acquisition date values of acquired assets and assumed liabilities during the year ended December 31, 2022 (in thousands): Investments in real estate, equity: Assets acquired: Land $ 16,327 Building 65,488 Building and tenant improvements 577 Personal property 4,402 Investments in real estate 86,794 Right of use assets 19,664 Cash and other assets 2,117 Intangible assets 9,748 Total 118,323 Liabilities assumed: Mortgage payable 18,089 Operating leases 43,260 Other liabilities 311 Subtotal 61,660 Fair value of net assets acquired 56,663 Less: Non-controlling interest 5,036 Investments in real estate from lending activities: Property held for sale 14,299 Total fair value at acquisition of net assets acquired $ 65,926 |
Schedule of Acquired Assets and Assumed Liabilities | The following table summarizes the book value of the Company’s acquired assets and assumed liabilities (in thousands, except amounts in the footnotes): December 31, 2022 December 31, 2021 Cost Basis Accumulated Depreciation & Amortization Carrying Value Cost Basis Accumulated Depreciation & Amortization Carrying Value Assets acquired: Investments in real estate, equity: Investments in real estate (1) $ 123,219 $ ( 2,251 ) $ 120,968 $ 27,065 $ ( 191 ) $ 26,874 Right of use assets (2)(3) 19,664 ( 205 ) 19,459 — — — Intangible assets (4) 11,474 ( 2,594 ) 8,880 1,726 ( 806 ) 920 Subtotal 154,357 ( 5,050 ) 149,307 28,791 ( 997 ) 27,794 Investments in real estate from lending activities: Investment in real estate (5) — — — 34,124 ( 1,689 ) 32,435 Properties held for sale (6) 53,769 — 53,769 17,846 — 17,846 Right of use assets (3)(7) — — — 5,603 ( 95 ) 5,508 Intangible assets (8) — — — 3,337 ( 380 ) 2,957 Subtotal 53,769 — 53,769 60,910 ( 2,164 ) 58,746 Total 208,126 ( 5,050 ) 203,076 89,701 ( 3,161 ) 86,540 Liabilities assumed: Investments in real estate, equity: Mortgage payable 18,089 155 18,244 — — — Other liabilities 247 ( 183 ) 64 247 ( 78 ) 169 Lease liabilities (3)(9) 43,260 ( 393 ) 42,867 — — — Subtotal 61,596 ( 421 ) 61,175 247 ( 78 ) 169 Investments in real estate from lending activities: Liabilities held for sale 3,025 — 3,025 3,113 ( 53 ) 3,060 Total 64,621 ( 421 ) 64,200 3,360 ( 131 ) 3,229 Total net investments in real estate and properties held for sale (10) $ 143,505 $ 138,876 $ 86,341 $ 83,311 (1) Includes $ 38.4 million and $ 22.4 million of land, which is not depreciable, at December 31, 2022 and 2021, respectively. (2) Includes a right of use associated with an acquired ground lease of $ 42.4 million accounted for as an operating lease, an above-market lease intangible asset of $ 19.0 million and a customer list intangible of $ 402,000 at December 31, 2022. Amortization of the above-market lease intangible is booked to real estate expenses on the consolidated statements of operations. (3) Refer to Note 9 for additional information on the Company’s remaining operating leases. (4) Carrying value includes $ 42,000 and $ 819,000 of an acquired in-place lease intangible asset and $ 39,000 and $ 101,000 of an acquired leasing commission intangible asset at December 31, 2022 and 2021, respectively. In 2022, investments in real estate acquired resulted in acquisitions of intangible assets. Carrying value of these assets at December 31, 2022 included a management contract at $ 3.1 million, franchise intangible of $ 5.3 million and a customer list value of $ 427,000 . (5) Includes $ 129,000 of building renovations assets at carrying value at December 31, 2021 made subsequent to the date of acquisition of a property. (6) At December 31, 2022, property held for sale includes two properties originally acquired in November 2020 and July 2022. At December 31, 2021, there was one property held for sale that was acquired in October 2021 and that was subsequently sold in September 2022. (7) Includes a right of use asset associated with an acquired ground lease of $ 3.1 million accounted for as an operating lease and a below-market lease intangible asset of $ 2.4 million at December 31, 2021. At December 31, 2022, these were reclassified to properties held for sale on the consolidated balance sheets. (8) Carrying value includes franchise agreement intangible assets of $ 2.6 million and a customer list intangible asset of $ 311,000 at December 31, 2021. At December 31, 2022, these intangible assets were reclassified to properties held for sale on the consolidated balance sheets. (9) Includes one ground lease at a hotel property with a remaining term of 93 years . Lease expenses for this liability for the year ended December 31, 2022 were $ 1.1 million. (10) Excludes items of working capital, either acquired or assumed. |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Summary of Operating Leases | The following table summarizes the Company’s operating leases (in thousands): December 31, 2022 December 31, 2021 Operating Leases: Right of use assets $ 822 $ 443 Lease liabilities $ ( 828 ) $ ( 477 ) Weighted average remaining lease term: 6.7 years 6.6 years Weighted average discount rate (1) : 8.71 % 10.65 % (1) The market discount rate is used, when readily determinable, in calculating the present value of lease payments for the operating lease liability. Otherwise, the incremental borrowing rate on the commencement date is used. |
Summary of Operating Lease Costs and Cash Payments | The following table summarizes the Company’s operating lease costs and cash payments during the periods indicated (in thousands): Year Ended December 31, 2022 Year Ended December 31, 2021 Lease Cost: Operating lease cost $ 68 $ 75 Other Information: Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 94 $ 39 |
Summary of Operating Leases Cash Flow Obligations on Undiscounted, Annual Basis | The following table summarizes the Company’s operating leases cash flow obligations on an undiscounted, annual basis (in thousands): Operating Leases 2023 $ 158 2024 155 2025 159 2026 163 2027 167 Thereafter 303 Subtotal 1,105 Less: impact of discount ( 277 ) Total $ 828 |
BORROWINGS (Tables)
BORROWINGS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Information with respect to borrowings | Certain information with respect to the Company’s borrowings is summarized in the following table (dollars in thousands, except amounts in footnotes): Principal Outstanding Unamortized Issuance Costs and Discounts Outstanding Borrowings Weighted Average Borrowing Rate Weighted Average Remaining Maturity Value of Collateral At December 31, 2022: ACR 2021-FL1 Senior Notes $ 675,223 $ 3,826 $ 671,397 5.81 % 13.5 years 802,643 ACR 2021-FL2 Senior Notes 567,000 4,841 562,159 6.13 % 14.1 years 700,000 Senior secured financing facility 91,549 3,659 87,890 7.94 % 5.0 years 196,837 CRE - term warehouse financing facilities (1) 330,849 2,561 328,288 6.85 % 1.8 years 453,550 Mortgage payable 18,710 466 18,244 8.08 % 2.3 years 25,400 5.75 % Senior Unsecured Notes 150,000 2,493 147,507 5.75 % 3.6 years — Unsecured junior subordinated debentures 51,548 — 51,548 8.52 % 13.7 years — Total $ 1,884,879 $ 17,846 $ 1,867,033 6.29 % 10.3 years $ 2,178,430 Principal Outstanding Unamortized Issuance Costs and Discounts Outstanding Borrowings Weighted Average Borrowing Rate Weighted Average Remaining Maturity Value of Collateral At December 31, 2021: XAN 2020-RSO8 Senior Notes $ 142,375 $ 577 $ 141,798 2.18 % 13.2 years $ 229,263 XAN 2020-RSO9 Senior Notes 94,814 489 94,325 4.25 % 15.3 years 144,361 ACR 2021-FL1 Senior Notes (2) 675,223 5,410 669,813 1.60 % 14.5 years 802,643 ACR 2021-FL2 Senior Notes 567,000 6,437 560,563 1.90 % 15.1 years 700,000 Senior secured financing facility — 3,432 ( 3,432 ) 5.75 % 6.2 years 170,791 CRE - term warehouse financing facilities (1) 71,078 4,307 66,771 2.27 % 2.8 years 102,027 4.50 % Convertible Senior Notes 88,014 1,583 86,431 4.50 % 227 days — 5.75 % Senior Unsecured Notes (3) 150,000 3,393 146,607 5.75 % 4.6 years — Unsecured junior subordinated debentures 51,548 — 51,548 4.12 % 14.7 years — Total $ 1,840,052 $ 25,628 $ 1,814,424 2.44 % 12.7 years $ 2,149,085 (1) Principal outstanding includes accrued interest payable of $ 894,000 and $ 58,000 at December 31, 2022 and 2021, respectively. (2) Value of collateral excludes interest income of $ 730,000 and exit fees of $ 228,000 received as of December 31, 2021. (3) Includes deferred debt issuance costs of $ 306,000 at December 31, 2021 from the unused 12.00% senior unsecured notes due 2027 that had no outstanding balance at December 31, 2021. |
Schedule of securitizations | The following table sets forth certain information with respect to the Company’s consolidated securitizations at December 31, 2022 (in thousands): Closing Date Maturity Date Reinvestment Period End (1) Total Note Paydowns from Closing Date through December 31, 2022 ACR 2021-FL1 May 2021 June 2036 May 2023 $ — ACR 2021-FL2 December 2021 January 2037 December 2023 $ — (1) The reinvestment period is the period in which principal proceeds received may be used to acquire CRE loans for reinvestment into the securitization. |
Senior secured warehouse financing facilities and mortgage payable | The following table sets forth certain information with respect to the Company’s senior secured financing facility, term warehouse facilities and mortgage payable (dollars in thousands, except amounts in footnotes): December 31, 2022 December 31, 2021 Outstanding Borrowings Value of Collateral Number of Positions as Collateral Weighted Average Interest Rate Outstanding Borrowings Value of Collateral Number of Positions as Collateral Weighted Average Interest Rate Senior Secured Financing Facility Massachusetts Mutual Life Insurance Company (1) $ 87,890 $ 196,837 8 7.94 % $ ( 3,432 ) $ 170,791 9 5.75 % CRE - Term Warehouse Financing Facilities (2) JPMorgan Chase Bank, N.A. (3) 186,783 255,095 11 6.74 % 18,875 37,167 3 2.85 % Morgan Stanley Mortgage Capital Holdings LLC (4) 141,505 198,455 10 7.00 % 47,896 64,860 3 2.03 % Mortgage Payable Readycap Commercial, LLC (5) 18,244 25,400 1 8.08 % — — — — Total $ 434,422 $ 675,787 $ 63,339 $ 272,818 (1) Includes $ 3.7 million and $ 3.4 million of deferred debt issuance costs at December 31, 2022 and 2021, respectively. (2) Outstanding borrowings include accrued interest payable. (3) Includes $ 1.1 million and $ 1.8 million of deferred debt issuance costs at December 31, 2022 and 2021 , respectively, which includes $ 356,000 of deferred debt issuance costs at December 31, 2021 from another term warehouse financing facility with no balance that matured in October 2022 . (4) Includes $ 1.4 million and $ 2.2 million of deferred debt issuance costs at December 31, 2022 and 2021, respectively. (5) Includes $ 466,000 of deferred debt issuance costs at December 31, 2022. |
Schedule of amount at risk under credit facility | The following table shows information about the amount at risk under the Company's financing arrangements (dollars in thousands): Amount at Risk (1) Weighted Average Remaining Maturity Weighted Average Interest Rate At December 31, 2022: Senior Secured Financing Facility (1) Massachusetts Mutual Life Insurance Company $ 105,818 5.0 years 7.94 % CRE - Term Warehouse Financing Facilities (1) JPMorgan Chase Bank, N. A. $ 68,768 1.8 years 6.74 % Morgan Stanley Mortgage Capital Holdings LLC $ 56,817 1.8 years 7.00 % Mortgage Payable (2) Readycap Commercial, LLC $ 6,602 2.3 years 8.08 % (1) Equal to the total of the estimated fair value of securities or loans sold and accrued interest receivable, minus the total of the warehouse financing agreement liabilities and accrued interest payable. (2) Equal to the total of the estimated fair value of real estate property investment financed, minus the total of the mortgage payable agreement liability and accrued interest payable. |
Schedule of contractual obligations and commitments | Contractual maturity dates of the Company’s borrowings’ principal outstanding by category and year are presented in the table below (in thousands, except amounts in footnotes): Total 2023 2024 2025 2026 2027 and Thereafter At December 31, 2022: CRE securitizations $ 1,242,223 $ — $ — $ — $ — $ 1,242,223 Senior Secured Financing Facility 91,549 — — — — 91,549 CRE - term warehouse financing facilities (1) 330,849 — 330,849 — — — Mortgage payable 18,710 — — 18,710 — — 5.75% Senior Unsecured Notes 150,000 — — — 150,000 — Unsecured junior subordinated debentures 51,548 — — — — 51,548 Total $ 1,884,879 $ — $ 330,849 $ 18,710 $ 150,000 $ 1,385,320 (1) Includes accrued interest payable in the balances of principal outstanding. |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of restricted common stock transactions | The following table summarizes the Company’s restricted common stock transactions: Manager Directors Total Number of Shares Weighted-Average Grant-Date Fair Value Unvested shares at January 1, 2022 299,999 33,330 333,329 $ 17.39 Issued 299,999 33,334 333,333 11.85 Vested ( 74,999 ) ( 8,330 ) ( 83,329 ) 17.39 Forfeited — — — — Unvested shares at December 31, 2022 524,999 58,334 583,333 $ 14.22 |
Summary of unvested restricted common stock expected to vest | The unvested restricted common stock shares are expected to vest during the following years: Shares 2023 166,658 2024 166,658 2025 166,671 2026 83,346 Total 583,333 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Reconciliation of basic and diluted (losses) earnings per common share | The following table presents a reconciliation of basic and diluted earnings (losses) per common share for the periods presented (dollars in thousands, except per share amounts): Years Ended December 31, 2022 2021 2020 Net income (loss) $ 10,426 $ 33,923 $ ( 197,713 ) Net income allocated to preferred shares ( 19,422 ) ( 15,887 ) ( 10,350 ) Net loss allocable to non-controlling interest, net of taxes 197 — — Net (loss) income allocable to common shares $ ( 8,799 ) $ 18,036 $ ( 208,063 ) Weighted average number of common shares outstanding: Weighted average number of common shares outstanding - basic 8,380,490 9,269,607 10,566,904 Weighted average number of warrants outstanding (1) 431,271 466,661 196,357 Total weighted average number of common shares outstanding - basic 8,811,761 9,736,268 10,763,261 Effect of dilutive securities - unvested restricted stock — 26,949 — Weighted average number of common shares outstanding - diluted 8,811,761 9,763,217 10,763,261 Net (loss) income per common share - basic $ ( 1.00 ) $ 1.85 $ ( 19.33 ) Net (loss) income per common share - diluted $ ( 1.00 ) $ 1.85 $ ( 19.33 ) (1) See Note 13 for further details regarding the warrants. |
DISTRIBUTIONS (Tables)
DISTRIBUTIONS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Distributions [Abstract] | |
Distributions Declared | The following table presents distributions declared (on a per share basis) for the years ended December 31, 2022, 2021 and 2020 with respect to the Company’s Series C Preferred Stock and Series D Preferred Stock: Series C Preferred Stock Series D Preferred Stock Date Paid Total Distribution Paid Distribution Per Share Date Paid Total Distribution Paid Distribution Per Share (in thousands) (in thousands) 2022 December 31 January 30, 2023 $ 2,587 $ 0.5390625 January 30, 2023 $ 2,268 $ 0.4921875 September 30 October 31 2,587 0.5390625 October 31 2,268 0.4921875 June 30 August 1 2,588 0.5390625 August 1 2,268 0.4921875 March 31 May 2 2,588 0.5390625 May 2 2,268 0.4921875 2021 December 31 January 31, 2022 $ 2,588 $ 0.5390625 January 31, 2022 $ 2,268 $ 0.4921875 September 30 November 1 2,588 0.5390625 November 1 2,264 0.4921875 June 30 July 30 2,588 0.5390625 July 30 1,736 0.3773440 March 31 April 30 2,588 0.5390625 N/A N/A N/A 2020 December 31 February 1, 2021 $ 2,587 $ 0.5390625 N/A N/A N/A March 31, June 30, and September 30 October 25 7,763 1.6171875 N/A N/A N/A |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE (LOSS) (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Schedule of accumulated other comprehensive (loss) | Th e following table presents the changes in net unrealized loss on derivatives, the sole component of accumulated other comprehensive loss, for the year ended December 31, 2022 (in thousands): Accumulated Other Comprehensive Loss - Net Unrealized Gain on Derivatives Balance at January 1, 2022 $ ( 8,127 ) Amounts reclassified from accumulated other comprehensive loss (1) 1,733 Balance at December 31, 2022 $ ( 6,394 ) (1) Amounts reclassified from accumulated other comprehensive loss are reclassified to interest expense on the Company’s consolidated statements of operations. |
FAIR VALUE OF FINANCIAL INSTR_2
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair value financial and non-financial instruments not reported at fair value | The fair values of the Company’s financial and non-financial instruments that are not reported at fair value on the consolidated balance sheets are reported in the following table (in thousands, except amount in footnotes): Fair Value Measurements Carrying Value Fair Value Quoted Prices in Active Markets for Identical Assets of Liabilities Significant Other Observable Inputs Significant Unobservable Inputs At December 31, 2022: Assets: CRE whole loans $ 2,038,787 $ 2,065,504 $ — $ — $ 2,065,504 Loan receivable - related party 11,275 9,672 — — 9,672 Liabilities: Senior notes in CRE securitizations 1,233,556 1,179,313 — — 1,179,313 Senior secured financing facility 87,890 91,549 — — 91,549 Warehouse financing facilities 328,288 330,848 — — 330,848 Mortgage payable 18,244 18,710 — — 18,710 5.75 % Senior Unsecured Notes 147,507 138,435 — — 138,435 Junior subordinated notes 51,548 35,821 — — 35,821 At December 31, 2021: Assets: CRE whole loans $ 1,869,301 $ 1,889,499 $ — $ — $ 1,889,499 CRE mezzanine loan 4,445 4,700 — — 4,700 Loan receivable - related party 11,575 10,407 — — 10,407 Liabilities: Senior notes in CRE securitizations 1,466,499 1,473,893 — — 1,473,893 Warehouse financing facilities 66,771 68,905 — — 68,905 4.50 % Convertible Senior Notes 86,431 87,873 — — 87,873 5.75 % Senior Unsecured Notes (1) 146,607 148,125 — — 148,125 Junior subordinated notes 51,548 41,424 — — 41,424 (1) Carrying value includes deferred debt issuance costs of $ 307,000 from the redeemed 12.00% Senior Unsecured Notes. |
MARKET RISK AND DERIVATIVE IN_2
MARKET RISK AND DERIVATIVE INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
The effect of derivative instruments on the statement of income | The following table presents the effect of the derivative instruments on the consolidated statements of operations during the years ended December 31, 2022, 2021 and 2020: Realized and Unrealized Gain (Loss) (1) Consolidated Statements of Operations Location Year Ended December 31, 2022 Year Ended December 31, 2021 Year Ended December 31, 2020 Interest rate swap contracts, hedging Interest expense $ ( 1,733 ) $ ( 1,851 ) $ ( 1,562 ) Interest rate swap contracts Other (expense) income $ — $ — $ ( 10 ) (1) Negative values indicate a decrease to the associated consolidated statements of operations line items. |
OFFSETTING OF FINANCIAL ASSET_2
OFFSETTING OF FINANCIAL ASSETS AND LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Offsetting [Abstract] | |
Offsetting financial liabilities | The following table presents a summary of the Company’s offsetting of financial liabilities and derivative liabilities (in thousands, except amounts in footnotes): (i) (ii) (iii) = (i) - (ii) (iv) of Recognized Consolidated Consolidated Financial (1) Cash Collateral (v) = (iii) - (iv) At December 31, 2022: Warehouse financing facilities (2) $ 328,288 $ — $ 328,288 $ 328,288 $ — $ — At December 31, 2021: Warehouse financing facilities (2) $ 66,771 $ — $ 66,771 $ 66,771 $ — $ — (1) Amounts represent financial instruments pledged that are available to be offset against liability balances associated with term warehouse financing facilities, repurchase agreements and derivatives. (2) The combined fair value of securities and loans pledged against the Company’s various warehouse financing facilities and repurchase agreements was $ 453.6 million and $ 102.0 million at December 31, 2022 and 2021 , respectively. |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Components of income taxes | The following table details the components of income taxes at the Company’s TRSs (in thousands): Years Ended December 31, 2022 2021 2020 Income tax (benefit) expense: Current: Federal $ — $ — $ — State 13 — — Total current 13 — — Deferred: Federal — — — State — — — Total deferred — — — Total $ 13 $ — $ — |
Reconciliation between federal statutory income tax rate and effective income tax rate | A reconciliation of the income tax expense based upon the statutory tax rate to the effective income tax rate was as follows for the Company’s TRSs for the years presented (in thousands): Years Ended December 31, 2022 2021 2020 Income tax (benefit) expense: Statutory tax $ ( 178 ) $ ( 66 ) $ ( 37 ) State and local taxes, net of federal benefit 313 ( 59 ) ( 3,353 ) True-up of prior period tax expense — — — Valuation allowance ( 64 ) 125 6,407 Discontinued operations adjustment — — — Other items ( 58 ) — ( 3,017 ) Total $ 13 $ — $ — |
Components of deferred tax assets and liabilities | The components of deferred tax assets and liabilities were as follows for the Company’s TRSs (in thousands): December 31, 2022 2021 Deferred tax assets related to: Federal, state and local loss carryforwards $ 14,018 $ 14,362 Charitable contribution carryforward — 58 Capital loss carryforward 309 327 Equity investments 6,657 6,728 Interest expense limitation 163(j) 527 202 Total deferred tax assets 21,511 21,677 Valuation allowance ( 21,171 ) ( 21,360 ) Total deferred tax assets, net of valuation allowance $ 340 $ 317 Deferred tax liabilities related to: Amortization of intangibles $ ( 254 ) $ ( 260 ) Unrealized gains ( 86 ) ( 57 ) Total deferred tax liabilities $ ( 340 ) $ ( 317 ) Deferred tax assets, net $ — $ — |
QUARTERLY RESULTS (Tables)
QUARTERLY RESULTS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly results of operations | The following is a presentation of the quarterly results of operations: March 31 June 30 September 30 December 31 (unaudited) (unaudited) (unaudited) (unaudited) (in thousands, except per share data) Year ended December 31, 2022: Interest income $ 22,676 $ 27,019 $ 34,065 $ 42,514 Interest expense 14,907 15,745 22,939 28,733 Net interest income $ 7,769 $ 11,274 $ 11,126 $ 13,781 Net income (loss) $ 2,084 $ 5,522 $ 5,486 $ ( 2,666 ) Net income allocated to preferred shares ( 4,855 ) ( 4,856 ) ( 4,855 ) ( 4,856 ) Net loss allocated to non-controlling interest, net of taxes — 24 82 91 Net (loss) income allocable to common shares $ ( 2,771 ) $ 690 $ 713 $ ( 7,431 ) Net (loss) income per common share - basic $ ( 0.30 ) $ 0.08 $ 0.08 $ ( 0.87 ) Net (loss) income per common share - diluted $ ( 0.30 ) $ 0.08 $ 0.08 $ ( 0.87 ) March 31 June 30 September 30 December 31 (unaudited) (unaudited) (unaudited) (unaudited) (in thousands, except per share data) Year ended December 31, 2021: Interest income $ 24,749 $ 25,793 $ 23,986 $ 26,504 Interest expense 13,724 18,702 14,534 14,615 Net interest income $ 11,025 $ 7,091 $ 9,452 $ 11,889 Net income (loss) $ 13,056 $ 13,639 $ ( 4,928 ) $ 12,156 Net income allocated to preferred shares ( 2,588 ) ( 3,568 ) ( 4,877 ) ( 4,854 ) Net income (loss) allocable to common shares $ 10,468 $ 10,071 $ ( 9,805 ) $ 7,302 Net income (loss) per common share - basic $ 1.03 $ 1.04 $ ( 1.03 ) $ 0.77 Net income (loss) per common share - diluted $ 1.03 $ 1.04 $ ( 1.03 ) $ 0.76 |
ORGANIZATION (Details)
ORGANIZATION (Details) - $ / shares | Feb. 16, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | May 31, 2021 | Apr. 30, 2021 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||
Number of fractional shares issued | 0 | ||||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | $ 0.001 | ||
Capital stock, shares authorized | 141,666,666 | 225,000,000 | |||
Common stock, shares authorized (in shares) | 41,666,666 | 41,666,666 | 41,666,666 | 125,000,000 | |
Preferred stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Summary Of Significant Accounting Policies [Line Items] | ||
Cash balance in excess of federal deposit Insurance limit, amount | $ 63,300,000 | $ 33,300,000 |
Percentage of REIT taxable income distributed to stockholders not subject to federal corporate tax | 100% | |
Provision for Income Tax | $ 336,000 | |
Operating loss carryforwards, valuation allowance, tax expense impact | 21,200,000 | $ 21,400,000 |
Floating rate loans at carring value | 2,000,000,000 | |
CRE - Term Warehouse Financing Facilities | JP Morgan Chase Bank, N.A. | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Floating rate borrowings value | 1,700,000,000 | |
London Interbank Offered Rate (LIBOR) | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Floating rate loans at carring value | $ 1,400,000,000 | |
Interest rate | 68.30% | |
London Interbank Offered Rate (LIBOR) | CRE - Term Warehouse Financing Facilities | JP Morgan Chase Bank, N.A. | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Floating rate borrowings value | $ 1,300,000,000 | |
Interest borrowing rate | 75.80% | |
Secured Overnight Financing Rate (SOFR) | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Floating rate loans at carring value | $ 646,200,000 | |
Interest rate | 31.70% | |
Secured Overnight Financing Rate (SOFR) | CRE - Term Warehouse Financing Facilities | JP Morgan Chase Bank, N.A. | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Floating rate borrowings value | $ 419,200 | |
Interest borrowing rate | 24.20% | |
Foreign TRS | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Provision for Income Tax | $ 0 | |
Office Space | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Operating lease term | 7 years | |
Office Equipment | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Operating lease term | 3 years | |
Commercial Real Estate Loans | Rating 3 | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Financing receivable, allowance for credit losses, percentage of aggregate par amount of loans | 1.50% | |
Commercial Real Estate Loans | Rating 4 | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Financing receivable, allowance for credit losses, percentage of outstanding par amount of loans | 5% |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Reconciliation of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 66,232 | $ 35,500 | ||
Restricted cash | 38,579 | 248,431 | ||
Total cash, cash equivalents and restricted cash shown on the Company's consolidated statements of cash flows | $ 104,811 | $ 283,931 | $ 67,741 | $ 94,434 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Investments in Real Estate and Amortizes Intangible Assets Over The Estimated Useful Lives of Assets (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Summary Of Significant Accounting Policies [Line Items] | |
Site improvements | 10 years |
Tenant improvements | Shorter of lease term or expected useful life |
Minimum | |
Summary Of Significant Accounting Policies [Line Items] | |
Building | 35 years |
Building improvements | 8 years |
Furniture, fixtures and equipment | 3 years |
Right of use assets | 7 years |
Intangible assets | 90 days |
Lease liabilities | 7 years |
Maximum | |
Summary Of Significant Accounting Policies [Line Items] | |
Building | 40 years |
Building improvements | 35 years |
Furniture, fixtures and equipment | 12 years |
Right of use assets | 94 years |
Intangible assets | 18 years |
Lease liabilities | 94 years |
VARIABLE INTEREST ENTITIES (Con
VARIABLE INTEREST ENTITIES (Consolidated VIEs) (the Company is the primary beneficiary) (Details) - VIE, Primary Beneficiary | 12 Months Ended | ||
Dec. 31, 2022 USD ($) Entity | Dec. 31, 2021 USD ($) Entity | Dec. 31, 2020 USD ($) | |
Variable Interest Entity [Line Items] | |||
Number of consolidated VIEs | Entity | 5 | 7 | |
Financial support, amount | $ | $ 0 | $ 0 | $ 0 |
VARIABLE INTEREST ENTITIES (Cha
VARIABLE INTEREST ENTITIES (Charles Street-ACRES FSU Student Venture, LLC) (Details) - USD ($) $ in Thousands | 1 Months Ended | ||
Apr. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Variable Interest Entity [Line Items] | |||
Investments in unconsolidated entities | $ 1,548 | $ 1,548 | |
Charles Street-ACRES FSU Student Venture, LLC | VIE, Not Primary Beneficiary | |||
Variable Interest Entity [Line Items] | |||
Ownership percentage in VIE | 72.10% | ||
Investments in unconsolidated entities | $ 13,000 |
VARIABLE INTEREST ENTITIES (Sch
VARIABLE INTEREST ENTITIES (Schedule of Carrying Value of Assets and Liabilities of Consolidated VIEs) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
ASSETS: | ||
Restricted cash | $ 38,579 | $ 248,431 |
Accrued interest receivable | 11,969 | 6,112 |
CRE loans | 2,038,787 | 1,873,746 |
Principal paydowns receivable | 0 | 14,899 |
Other assets | 4,364 | 5,482 |
Total assets | 2,376,652 | 2,284,275 |
LIABILITIES | ||
Accounts payable and other liabilities | 10,391 | 7,025 |
Accrued interest payable | 6,921 | 5,937 |
Borrowings | 1,867,033 | 1,814,424 |
Total liabilities | 1,935,338 | 1,836,080 |
VIE, Primary Beneficiary | ||
ASSETS: | ||
Restricted cash | 38,180 | 248,371 |
Accrued interest receivable | 8,184 | 3,826 |
Other assets | 119 | 36 |
Total assets | 1,503,132 | 1,868,614 |
LIABILITIES | ||
Accounts payable and other liabilities | 93 | 315 |
Accrued interest payable | 3,083 | 997 |
Borrowings | 1,233,556 | 1,466,499 |
Total liabilities | 1,236,732 | 1,467,811 |
Pledged as Collateral | VIE, Primary Beneficiary | ||
ASSETS: | ||
CRE loans | 1,456,649 | $ 1,601,482 |
CRE Securitizations | VIE, Primary Beneficiary | ||
ASSETS: | ||
Restricted cash | 37,872 | |
Accrued interest receivable | 8,184 | |
Other assets | 63 | |
Total assets | 1,502,768 | |
LIABILITIES | ||
Accounts payable and other liabilities | 93 | |
Accrued interest payable | 3,083 | |
Borrowings | 1,233,556 | |
Total liabilities | 1,236,732 | |
CRE Securitizations | Pledged as Collateral | VIE, Primary Beneficiary | ||
ASSETS: | ||
CRE loans | 1,456,649 | |
Other | VIE, Primary Beneficiary | ||
ASSETS: | ||
Restricted cash | 308 | |
Accrued interest receivable | 0 | |
Other assets | 56 | |
Total assets | 364 | |
LIABILITIES | ||
Accounts payable and other liabilities | 0 | |
Accrued interest payable | 0 | |
Borrowings | 0 | |
Total liabilities | 0 | |
Other | Pledged as Collateral | VIE, Primary Beneficiary | ||
ASSETS: | ||
CRE loans | $ 0 |
VARIABLE INTEREST ENTITIES (Unc
VARIABLE INTEREST ENTITIES (Unconsolidated VIEs) (the Company is not the primary beneficiary, but has a variable interest) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Variable Interest Entity [Line Items] | ||
Investments in unconsolidated entities | $ 1,548,000 | $ 1,548,000 |
Borrowings | $ 1,867,033,000 | $ 1,814,424,000 |
VIE, Not Primary Beneficiary | Investment in RCT I and II | ||
Variable Interest Entity [Line Items] | ||
Ownership percentage in VIE | 100% | |
Investments in unconsolidated entities | $ 1,500,000 | |
VIE, Not Primary Beneficiary | Interest in RCT I | ||
Variable Interest Entity [Line Items] | ||
Investments in unconsolidated entities | $ 774,000 | |
Percentage of value of trusts owned | 3% | |
Borrowings | $ 25,800,000 | |
VIE, Not Primary Beneficiary | Interest in RCT II | ||
Variable Interest Entity [Line Items] | ||
Investments in unconsolidated entities | $ 774,000 | |
Percentage of value of trusts owned | 3% | |
Borrowings | $ 25,800,000 |
VARIABLE INTEREST ENTITIES (S_2
VARIABLE INTEREST ENTITIES (Schedule of Classification, Carrying Value, and Maximum Exposure to Loss of Unconsolidated VIEs) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
ASSETS: | ||
Total assets | $ 2,376,652 | $ 2,284,275 |
LIABILITIES | ||
Total liabilities | 1,935,338 | $ 1,836,080 |
VIE, Not Primary Beneficiary | Interest Receivable | ||
LIABILITIES | ||
Maximum Exposure to Loss | 0 | |
VIE, Not Primary Beneficiary | Investments in Unconsolidated Entities | ||
LIABILITIES | ||
Maximum Exposure to Loss | 1,548 | |
Unsecured Junior Subordinated Debentures | VIE, Not Primary Beneficiary | ||
ASSETS: | ||
Accrued interest receivable | 11 | |
Investments in unconsolidated entities | 1,548 | |
Total assets | 1,559 | |
LIABILITIES | ||
Accrued interest payable | 378 | |
Borrowings | 51,548 | |
Total liabilities | 51,926 | |
Net (liability) asset | $ (50,367) |
SUPPLEMENTAL CASH FLOW INFORM_3
SUPPLEMENTAL CASH FLOW INFORMATION (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Supplemental cash flows: | |||
Interest expense paid in cash | $ 70,025 | $ 42,345 | $ 44,677 |
Income taxes paid in cash | 228 | ||
Non-cash operating activities include the following: | |||
Acquisition of below-market lease intangible related to the receipt of deed in lieu of foreclosure | (2,490) | ||
Acquisition of right of use asset related to the receipt of deed in lieu of foreclosure | (3,113) | ||
Assumption of operating lease related to the receipt of deed in lieu of foreclosure | 3,113 | ||
Acquisition of other right of use assets | (299) | (479) | |
Assumption of other operating lease liabilities | 299 | 479 | |
Non-cash investing activities include the following: | |||
Investment in property held for sale related to the receipt of deed in lieu of foreclosure | (14,299) | (17,600) | |
Proceeds from the relinquishment of investment securities available-for-sale | 369,873 | ||
Proceeds from the receipt of deed in lieu of foreclosure on loan | 14,299 | 17,600 | 39,750 |
Investment in real estate assets related to the receipt of deed in lieu of foreclosure | (33,924) | ||
Investment in intangible assets related to the receipt of deed in lieu of foreclosure | (3,336) | ||
Non-cash financing activities include the following: | |||
Repayment of repurchase agreements from the relinquishment of investment securities available-for-sale | (369,873) | ||
Preferred Stock | |||
Non-cash financing activities include the following: | |||
Distributions accrued but not paid | $ 3,262 | $ 3,262 | $ 1,725 |
RESTRICTED CASH (Details)
RESTRICTED CASH (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | $ 38,579 | $ 248,431 |
Cash held by consolidated CRE securitizations, CDOs and CLOs | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | 38,180 | 248,071 |
Restricted cash held in escrow for tax payments | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | 274 | |
Restricted cash pledged with minimum reserve balance requirements | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | $ 125 | $ 360 |
LOANS (Summary of Loans) (Detai
LOANS (Summary of Loans) (Details) | Dec. 31, 2022 USD ($) Loan | Dec. 31, 2021 USD ($) Loan | Dec. 31, 2020 USD ($) |
Receivables With Imputed Interest [Line Items] | |||
Amortized Cost, Loans held for investment | $ 2,057,590,000 | $ 1,882,551,000 | |
Allowance for Credit Losses | (18,803,000) | (8,805,000) | $ (34,310,000) |
Commercial Real Estate Loans | |||
Receivables With Imputed Interest [Line Items] | |||
Principal, Loans held for investment | 2,070,204,000 | 1,896,495,000 | |
Unamortized (Discount) Premium, net | (12,614,000) | (13,944,000) | |
Amortized Cost, Loans held for investment | 2,057,590,000 | 1,882,551,000 | |
Allowance for Credit Losses | (18,803,000) | (8,805,000) | |
Carrying Value, Loans held for investment | 2,038,787,000 | 1,873,746,000 | |
Loan origination fees | 12,300,000 | 13,600,000 | |
Deferred amendment fees | 308,000 | 307,000 | |
Unamortized loan acquisition costs | 0 | 7,300 | |
Commercial Real Estate Loans | Whole Loans | |||
Receivables With Imputed Interest [Line Items] | |||
Principal, Loans held for investment | 2,065,504,000 | 1,891,795,000 | |
Unamortized (Discount) Premium, net | (12,614,000) | (13,944,000) | |
Amortized Cost, Loans held for investment | 2,052,890,000 | 1,877,851,000 | |
Allowance for Credit Losses | (14,103,000) | (8,550,000) | |
Carrying Value, Loans held for investment | $ 2,038,787,000 | $ 1,869,301,000 | |
Quantity | Loan | 81 | 93 | |
Loans held for investment, unfunded loan commitments | $ 158,200,000 | $ 157,600,000 | |
Commercial Real Estate Loans | Whole Loans | Benchmark Rate | |||
Receivables With Imputed Interest [Line Items] | |||
Loan receivable, floor interest rate | 0.68% | 0.75% | |
Commercial Real Estate Loans | Whole Loans | Benchmark Rate | Minimum | |||
Receivables With Imputed Interest [Line Items] | |||
Contractual Interest Rates | 2.85% | 2.70% | |
Commercial Real Estate Loans | Whole Loans | Benchmark Rate | Maximum | |||
Receivables With Imputed Interest [Line Items] | |||
Contractual Interest Rates | 8.50% | 8.50% | |
Commercial Real Estate Loans | Mezzanine loan | |||
Receivables With Imputed Interest [Line Items] | |||
Principal, Loans held for investment | $ 4,700,000 | $ 4,700,000 | |
Amortized Cost, Loans held for investment | 4,700,000 | 4,700,000 | |
Allowance for Credit Losses | $ (4,700,000) | (255,000) | |
Carrying Value, Loans held for investment | $ 4,445,000 | ||
Quantity | Loan | 1 | 1 | |
Contractual Interest Rates | 10% | 10% | |
Commercial Real Estate Loans | Whole Loans in Default | |||
Receivables With Imputed Interest [Line Items] | |||
Amortized Cost, Loans held for investment | $ 51,600,000 | $ 27,900,000 | |
Quantity | Loan | 3 | 3 |
LOANS (Commercial Real Estate L
LOANS (Commercial Real Estate Loans, at Amortized Cost) (Details) $ in Thousands | Dec. 31, 2022 USD ($) Loan | Dec. 31, 2021 USD ($) Loan |
Receivables With Imputed Interest [Line Items] | ||
CRE loans | $ 2,057,590 | $ 1,882,551 |
Commercial Real Estate Loans | ||
Receivables With Imputed Interest [Line Items] | ||
CRE loans | 2,057,590 | 1,882,551 |
Commercial Real Estate Loans | Whole Loans in Default | ||
Receivables With Imputed Interest [Line Items] | ||
CRE loans | $ 51,600 | $ 27,900 |
Number of loans | Loan | 3 | 3 |
Commercial Real Estate Debt Investments | ||
Receivables With Imputed Interest [Line Items] | ||
2023 | $ 268,120 | $ 377,024 |
2024 | 882,175 | 230,872 |
2025 and Thereafter | 855,731 | 1,246,713 |
Amortized Cost, Loans held for investment | 2,006,026 | 1,854,609 |
Commercial Real Estate Debt Investments | Whole Loans | ||
Receivables With Imputed Interest [Line Items] | ||
2023 | 268,120 | 377,024 |
2024 | 882,175 | 230,872 |
2025 and Thereafter | 851,031 | 1,242,013 |
Amortized Cost, Loans held for investment | 2,001,326 | 1,849,909 |
Commercial Real Estate Debt Investments | Whole Loans | Whole Loan in Extension Option | ||
Receivables With Imputed Interest [Line Items] | ||
2023 | 113,800 | 52,000 |
2024 | 68,600 | 127,600 |
2025 and Thereafter | 1,800,000 | 1,700,000 |
Commercial Real Estate Debt Investments | Mezzanine loan | ||
Receivables With Imputed Interest [Line Items] | ||
2025 and Thereafter | 4,700 | 4,700 |
Amortized Cost, Loans held for investment | $ 4,700 | $ 4,700 |
LOANS (Details)
LOANS (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Variable Interest Entity [Line Items] | ||
Principal paydowns receivable | $ 0 | $ 14,899 |
Commercial Real Estate Loans | US Southwest Region [Member] | ||
Variable Interest Entity [Line Items] | ||
Concentration of loan portfolio risk | 23.20% | 18.40% |
Commercial Real Estate Loans | Mountain Region | ||
Variable Interest Entity [Line Items] | ||
Concentration of loan portfolio risk | 16.20% | |
Commercial Real Estate Loans | US Southeast Region [Member] | ||
Variable Interest Entity [Line Items] | ||
Concentration of loan portfolio risk | 21.50% | 28.40% |
Commercial Real Estate Loans | Mid-Atlantic regions | ||
Variable Interest Entity [Line Items] | ||
Concentration of loan portfolio risk | 15.20% |
FINANCING RECEIVABLES (Activity
FINANCING RECEIVABLES (Activity in Allowance for Credit Losses) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Receivables [Abstract] | |||
Allowance for credit losses at beginning of year | $ 8,805 | $ 34,310 | |
Provision for (reversal of) credit losses, net | 12,295 | (21,262) | $ 30,815 |
Charge offs | (2,297) | (4,243) | |
Allowance for credit losses at end of year | $ 18,803 | $ 8,805 | $ 34,310 |
FINANCING RECEIVABLES (Details)
FINANCING RECEIVABLES (Details) | 1 Months Ended | 12 Months Ended | |||||||
Feb. 28, 2023 USD ($) | Sep. 30, 2022 USD ($) | Nov. 30, 2021 USD ($) | Nov. 30, 2020 USD ($) | Jun. 30, 2020 USD ($) Note | Dec. 31, 2022 USD ($) Loan Contract Borrower Note | Dec. 31, 2021 USD ($) Loan Note | Dec. 31, 2020 USD ($) | Sep. 30, 2021 USD ($) | |
Accounts Notes And Loans Receivable [Line Items] | |||||||||
Provision for (reversal of) credit losses, net | $ 12,295,000 | $ (21,262,000) | $ 30,815,000 | ||||||
Financing Receivable, Allowance for Credit Loss | $ 18,803,000 | 8,805,000 | 34,310,000 | ||||||
Current expected credit losses (CECL) allowance | $ 2,300,000 | ||||||||
Reversal of CECL allowance | $ 8,000,000 | ||||||||
Number of bank loans | Loan | 2 | 1 | |||||||
Troubled-debt restructurings | $ 0 | $ 0 | |||||||
Proceeds from Sale of Property Held-for-sale | $ 19,300,000 | ||||||||
Selling costs of property held for sale | 532,000 | ||||||||
Gain (Loss) on Disposition of Property Plant Equipment | $ 1,900,000 | ||||||||
Subsequent Event | |||||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||||
Proceeds from Sale of Property Held-for-sale | $ 15,100,000 | ||||||||
Extended Maturity | |||||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||||
No of extension agreements | Contract | 12 | ||||||||
No of loans | Loan | 8 | ||||||||
Weighted average extension period of contracts | 4 months | ||||||||
Principal Forgiveness | |||||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||||
Number of borrowers | Borrower | 1 | ||||||||
Commercial Real Estate Debt Investments | |||||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||||
Fair value of assets acquired | $ 39,800,000 | ||||||||
Collateral Dependent Loans | |||||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||||
Financing Receivable, Allowance for Credit Loss | $ 4,700,000 | $ 2,300,000 | |||||||
Office Loan | |||||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||||
Current expected credit losses (CECL) allowance | 1,900,000 | ||||||||
Hotel Loan | |||||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||||
Current expected credit losses (CECL) allowance | 0 | ||||||||
Mezzanine loan | |||||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||||
Number of bank loans | Note | 1 | 1 | |||||||
Whole Loans In Maturity Default | |||||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||||
Number of bank loans | Loan | 1 | 1 | |||||||
Recorded investment | $ 22,800,000 | $ 8,000,000 | |||||||
Northeast Region | Subsequent Event | |||||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||||
Proceeds from Sale of Property Held-for-sale | $ 15,100,000 | ||||||||
Northeast Region | Office Loan | |||||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||||
Loan appraised value | 17,600,000 | ||||||||
Current expected credit losses (CECL) allowance | 2,300,000 | $ 2,300,000 | |||||||
Principal balance individually evaluated | 19,900,000 | 19,900,000 | |||||||
Northeast Region | Hotel Loan | |||||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||||
Current expected credit losses (CECL) allowance | $ 1,700,000 | 0 | 1,800,000 | ||||||
Principal balance individually evaluated | 37,900,000 | 14,000,000 | 14,000,000 | 9,300,000 | |||||
Estimate of fair value | $ 7,500,000 | ||||||||
Proceeds from sale of notes receivable | $ 7,600,000 | ||||||||
Northeast Region | Retail Loan | |||||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||||
Number of loans individually evaluated | Loan | 1 | ||||||||
Principal balance individually evaluated | $ 8,000,000 | ||||||||
Northeast Region | Mezzanine loan | |||||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||||
Number of loans individually evaluated | Loan | 1 | ||||||||
Principal balance individually evaluated | $ 4,700,000 | ||||||||
Northeast Region | Whole Loans In Maturity Default | |||||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||||
Recorded investment | $ 14,000,000 | ||||||||
Southwest Region | Retail Loan | |||||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||||
Number of loans individually evaluated | Loan | 1 | ||||||||
Principal balance individually evaluated | $ 20,700,000 | ||||||||
Asia Pacific | Retail Loan | |||||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||||
Current expected credit losses (CECL) allowance | 2,300,000 | ||||||||
Principal balance individually evaluated | 11,500,000 | ||||||||
East North Central Region | Hotel Loan | |||||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||||
Current expected credit losses (CECL) allowance | 0 | ||||||||
Principal balance individually evaluated | 8,400,000 | ||||||||
Commercial Real Estate Loans | |||||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||||
Provision for (reversal of) credit losses, net | 12,300,000 | 21,300,000 | 30,800,000 | ||||||
Loan appraised value | 19,900,000 | ||||||||
Financing Receivable, Allowance for Credit Loss | 18,803,000 | $ 8,805,000 | |||||||
Proceeds from sale of notes receivable | $ 17,400,000 | ||||||||
Number of notes receivable sold | Note | 1 | ||||||||
Realized loss on sale of notes receivable | $ 1,000,000 | ||||||||
Number of bank loans | Loan | 3 | ||||||||
Recorded investment | 51,600,000 | ||||||||
Commercial Real Estate Loans | Mezzanine loan | |||||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||||
Financing Receivable, Allowance for Credit Loss | $ 4,700,000 | $ 255,000 | |||||||
Commercial Real Estate Loans | Whole Loans | |||||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||||
Number of bank loans | Loan | 3 | 3 | |||||||
Recorded investment | $ 27,900,000 | ||||||||
Commercial Real Estate Loans | Two Whole Loans | |||||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||||
Number of bank loans | Loan | 1 | ||||||||
Recorded investment | $ 8,000,000 | 30,400,000 | |||||||
Commercial Real Estate Loans | Principal Receivable | |||||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||||
Proceeds from the payoffs of loans receivable | $ 17,600,000 |
FINANCING RECEIVABLES (Credit R
FINANCING RECEIVABLES (Credit Risk Profiles and Allowance For Loan Losses) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Schedule Of Financing Receivables [Line Items] | ||
CRE loans | $ 2,057,590 | $ 1,882,551 |
Commercial Real Estate Loans | ||
Schedule Of Financing Receivables [Line Items] | ||
CRE loans | 2,057,590 | 1,882,551 |
Commercial Real Estate Loans | Whole Loans | ||
Schedule Of Financing Receivables [Line Items] | ||
CRE loans | 2,052,890 | 1,877,851 |
Commercial Real Estate Loans | Mezzanine loan | ||
Schedule Of Financing Receivables [Line Items] | ||
CRE loans | 4,700 | 4,700 |
Rating 1 | Commercial Real Estate Loans | ||
Schedule Of Financing Receivables [Line Items] | ||
CRE loans | 0 | 0 |
Rating 1 | Commercial Real Estate Loans | Whole Loans | ||
Schedule Of Financing Receivables [Line Items] | ||
CRE loans | 0 | 0 |
Rating 1 | Commercial Real Estate Loans | Mezzanine loan | ||
Schedule Of Financing Receivables [Line Items] | ||
CRE loans | 0 | 0 |
Rating 2 | Commercial Real Estate Loans | ||
Schedule Of Financing Receivables [Line Items] | ||
CRE loans | 1,635,376 | 1,456,330 |
Rating 2 | Commercial Real Estate Loans | Whole Loans | ||
Schedule Of Financing Receivables [Line Items] | ||
CRE loans | 1,635,376 | 1,456,330 |
Rating 2 | Commercial Real Estate Loans | Mezzanine loan | ||
Schedule Of Financing Receivables [Line Items] | ||
CRE loans | 0 | 0 |
Rating 3 | Commercial Real Estate Loans | ||
Schedule Of Financing Receivables [Line Items] | ||
CRE loans | 309,491 | 273,078 |
Rating 3 | Commercial Real Estate Loans | Whole Loans | ||
Schedule Of Financing Receivables [Line Items] | ||
CRE loans | 309,491 | 273,078 |
Rating 3 | Commercial Real Estate Loans | Mezzanine loan | ||
Schedule Of Financing Receivables [Line Items] | ||
CRE loans | 0 | 0 |
Rating 4 | Commercial Real Estate Loans | ||
Schedule Of Financing Receivables [Line Items] | ||
CRE loans | 85,226 | 128,462 |
Rating 4 | Commercial Real Estate Loans | Whole Loans | ||
Schedule Of Financing Receivables [Line Items] | ||
CRE loans | 85,226 | 123,762 |
Rating 4 | Commercial Real Estate Loans | Mezzanine loan | ||
Schedule Of Financing Receivables [Line Items] | ||
CRE loans | 0 | 4,700 |
Rating 5 | Commercial Real Estate Loans | ||
Schedule Of Financing Receivables [Line Items] | ||
CRE loans | 27,497 | 24,681 |
Rating 5 | Commercial Real Estate Loans | Whole Loans | ||
Schedule Of Financing Receivables [Line Items] | ||
CRE loans | 22,797 | 24,681 |
Rating 5 | Commercial Real Estate Loans | Mezzanine loan | ||
Schedule Of Financing Receivables [Line Items] | ||
CRE loans | $ 4,700 | $ 0 |
FINANCING RECEIVABLES (Credit_2
FINANCING RECEIVABLES (Credit Risk Profiles and Allowance For Loan Losses) (Parenthetical) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Commercial Real Estate Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Recorded investment excluded accrued interest receivable | $ 11.9 | $ 6.1 |
FINANCING RECEIVABLES (Credit_3
FINANCING RECEIVABLES (Credit Risk Profiles of CRE Loans by Origination Year at Amortized Costs) (Details) - Commercial Real Estate Loans - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Financing Receivable Recorded Investment [Line Items] | ||
Loans and receivables by origination year, 2022 | $ 526,606 | $ 1,264,591 |
Loans and receivables by origination year, 2021 | 1,195,550 | 175,117 |
Loans and receivables by origination year, 2020 | 109,601 | 242,646 |
Loans and receivables by origination year, 2019 | 98,397 | 171,181 |
Loans and receivables by origination year, 2018 | 127,436 | 0 |
Loans and receivables by origination year, Prior | 0 | 29,016 |
Loans and receivables by origination year, Total | 2,057,590 | 1,882,551 |
Whole Loans | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans and receivables by origination year, 2022 | 526,606 | 1,264,591 |
Loans and receivables by origination year, 2021 | 1,195,550 | 175,117 |
Loans and receivables by origination year, 2020 | 109,601 | 242,646 |
Loans and receivables by origination year, 2019 | 98,397 | 166,481 |
Loans and receivables by origination year, 2018 | 122,736 | 0 |
Loans and receivables by origination year, Prior | 0 | 29,016 |
Loans and receivables by origination year, Total | 2,052,890 | 1,877,851 |
Whole Loans | Rating 2 | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans and receivables by origination year, 2022 | 526,606 | 1,230,810 |
Loans and receivables by origination year, 2021 | 1,003,060 | 150,513 |
Loans and receivables by origination year, 2020 | 64,944 | 55,510 |
Loans and receivables by origination year, 2019 | 26,977 | 19,497 |
Loans and receivables by origination year, 2018 | 13,789 | 0 |
Loans and receivables by origination year, Prior | 0 | 0 |
Loans and receivables by origination year, Total | 1,635,376 | 1,456,330 |
Whole Loans | Rating 3 | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans and receivables by origination year, 2022 | 33,781 | |
Loans and receivables by origination year, 2021 | 192,490 | 24,604 |
Loans and receivables by origination year, 2020 | 44,657 | 136,305 |
Loans and receivables by origination year, 2019 | 27,881 | 60,888 |
Loans and receivables by origination year, 2018 | 44,463 | 0 |
Loans and receivables by origination year, Prior | 0 | 17,500 |
Loans and receivables by origination year, Total | 309,491 | 273,078 |
Whole Loans | Rating 4 | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans and receivables by origination year, 2022 | 0 | 0 |
Loans and receivables by origination year, 2021 | 0 | 0 |
Loans and receivables by origination year, 2020 | 0 | 28,446 |
Loans and receivables by origination year, 2019 | 20,742 | 86,096 |
Loans and receivables by origination year, 2018 | 64,484 | 0 |
Loans and receivables by origination year, Prior | 0 | 9,220 |
Loans and receivables by origination year, Total | 85,226 | 123,762 |
Whole Loans | Rating 5 | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans and receivables by origination year, 2022 | 0 | 0 |
Loans and receivables by origination year, 2021 | 0 | 0 |
Loans and receivables by origination year, 2020 | 0 | 22,385 |
Loans and receivables by origination year, 2019 | 22,797 | 0 |
Loans and receivables by origination year, 2018 | 0 | 0 |
Loans and receivables by origination year, Prior | 0 | 2,296 |
Loans and receivables by origination year, Total | 22,797 | 24,681 |
Mezzanine loan | Rating 4 | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans and receivables by origination year, 2022 | 0 | |
Loans and receivables by origination year, 2021 | 0 | |
Loans and receivables by origination year, 2020 | 0 | |
Loans and receivables by origination year, 2019 | 4,700 | |
Loans and receivables by origination year, 2018 | 0 | |
Loans and receivables by origination year, Prior | 0 | |
Loans and receivables by origination year, Total | $ 4,700 | |
Mezzanine loan | Rating 5 | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans and receivables by origination year, 2022 | 0 | |
Loans and receivables by origination year, 2021 | 0 | |
Loans and receivables by origination year, 2020 | 0 | |
Loans and receivables by origination year, 2019 | 0 | |
Loans and receivables by origination year, 2018 | 4,700 | |
Loans and receivables by origination year, Prior | 0 | |
Loans and receivables by origination year, Total | $ 4,700 |
FINANCING RECEIVABLES (Credit_4
FINANCING RECEIVABLES (Credit Risk Profiles of CRE Loans by Origination Year at Amortized Costs) (Parenthetical) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Commercial Real Estate Loans | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Recorded investment excluded accrued interest receivable | $ 11.9 | $ 6.1 |
FINANCING RECEIVABLES (Loan Por
FINANCING RECEIVABLES (Loan Portfolio Aging Analysis) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Financing Receivable Recorded Investment Past Due [Line Items] | ||
CRE loans | $ 2,057,590 | $ 1,882,551 |
Total Loans > Than 90 days and Accruing | 0 | 19,916 |
30-59 Days | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
CRE loans | 0 | 0 |
60-89 Days | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
CRE loans | 0 | 0 |
Greater than 90 Days | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
CRE loans | 28,767 | 19,916 |
Total Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
CRE loans | 28,767 | 19,916 |
Current | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
CRE loans | 2,028,823 | 1,862,635 |
Commercial Real Estate Loans | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
CRE loans | 2,057,590 | 1,882,551 |
Commercial Real Estate Loans | Whole Loans | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
CRE loans | 2,052,890 | 1,877,851 |
Total Loans > Than 90 days and Accruing | 0 | 19,916 |
Commercial Real Estate Loans | Mezzanine loan | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
CRE loans | 4,700 | 4,700 |
Total Loans > Than 90 days and Accruing | 0 | 0 |
Commercial Real Estate Loans | 30-59 Days | Whole Loans | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
CRE loans | 0 | 0 |
Commercial Real Estate Loans | 30-59 Days | Mezzanine loan | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
CRE loans | 0 | 0 |
Commercial Real Estate Loans | 60-89 Days | Whole Loans | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
CRE loans | 0 | 0 |
Commercial Real Estate Loans | 60-89 Days | Mezzanine loan | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
CRE loans | 0 | 0 |
Commercial Real Estate Loans | Greater than 90 Days | Whole Loans | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
CRE loans | 28,767 | 19,916 |
Commercial Real Estate Loans | Greater than 90 Days | Mezzanine loan | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
CRE loans | 0 | 0 |
Commercial Real Estate Loans | Total Past Due | Whole Loans | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
CRE loans | 28,767 | 19,916 |
Commercial Real Estate Loans | Total Past Due | Mezzanine loan | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
CRE loans | 0 | 0 |
Commercial Real Estate Loans | Current | Whole Loans | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
CRE loans | 2,024,123 | 1,857,935 |
Commercial Real Estate Loans | Current | Mezzanine loan | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
CRE loans | $ 4,700 | $ 4,700 |
FINANCING RECEIVABLES (Loan P_2
FINANCING RECEIVABLES (Loan Portfolio Aging Analysis) (Parenthetical) (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2022 USD ($) Loan | Sep. 30, 2022 USD ($) | Jun. 30, 2022 USD ($) | Mar. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) Loan | Sep. 30, 2021 USD ($) | Jun. 30, 2021 USD ($) | Mar. 31, 2021 USD ($) | Dec. 31, 2022 USD ($) Loan | Dec. 31, 2021 USD ($) Loan | Dec. 31, 2020 USD ($) | |
Financing Receivable Recorded Investment Past Due [Line Items] | |||||||||||
Interest income | $ 42,514 | $ 34,065 | $ 27,019 | $ 22,676 | $ 26,504 | $ 23,986 | $ 25,793 | $ 24,749 | $ 126,274 | $ 101,032 | $ 108,243 |
Number of bank loans | Loan | 2 | 1 | 2 | 1 | |||||||
Whole Loans In Maturity Default | |||||||||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||||||||
Number of bank loans | Loan | 1 | 1 | 1 | 1 | |||||||
Recorded investment | $ 22,800 | $ 8,000 | $ 22,800 | $ 8,000 | |||||||
Commercial Real Estate Loans | |||||||||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||||||||
Interest income | 1,500 | $ 2,000 | $ 2,000 | ||||||||
Number of bank loans | Loan | 3 | 3 | |||||||||
Recorded investment | 51,600 | 51,600 | |||||||||
Recorded investment excluded accrued interest receivable | $ 11,900 | $ 6,100 | $ 11,900 | $ 6,100 | |||||||
Commercial Real Estate Loans | Greater than 90 Days | |||||||||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||||||||
Number of bank loans | Loan | 2 | 2 |
INVESTMENTS IN REAL ESTATE AN_3
INVESTMENTS IN REAL ESTATE AND OTHER ACQUIRED ASSETS AND ASSUMED LIABILITIES (Summary of Acquisition Date Values of Acquired Assets and Assumed Liabilities) (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Liabilities assumed: | |
Total fair value at acquisition of net assets acquired | $ 65,926 |
Investments In Real Estate Equity | |
Assets acquired: | |
Investments in real estate | 86,794 |
Right of use assets | 19,664 |
Cash and other assets | 2,117 |
Intangible assets | 9,748 |
Total | 118,323 |
Liabilities assumed: | |
Mortgage payable | 18,089 |
Operating leases | 43,260 |
Other liabilities | 311 |
Subtotal | 61,660 |
Fair value of net assets acquired | 56,663 |
Less: Non-controlling interest | 5,036 |
Property held for sale | 14,299 |
Land | Investments In Real Estate Equity | |
Assets acquired: | |
Investments in real estate | 16,327 |
Building | Investments In Real Estate Equity | |
Assets acquired: | |
Investments in real estate | 65,488 |
Building and Tenant Improvements | Investments In Real Estate Equity | |
Assets acquired: | |
Investments in real estate | 577 |
Personal Property | Investments In Real Estate Equity | |
Assets acquired: | |
Investments in real estate | $ 4,402 |
INVESTMENTS IN REAL ESTATE AN_4
INVESTMENTS IN REAL ESTATE AND OTHER ACQUIRED ASSETS AND ASSUMED LIABILITIES (Schedule of Acquired Assets and Assumed Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Sep. 30, 2022 | Dec. 31, 2021 |
Investment In Real Estate And Other Acquired Assets And Assumed Liabilities [Line Items] | |||
Investment in Real Estate, Carrying Value | $ 120,968 | $ 59,308 | |
Right of use Assets, Carrying Value | 20,281 | 5,951 | |
Property Held for Sale, Carrying Value | $ 36,900 | ||
Assets Acquired, Cost Basis | 208,126 | 89,701 | |
Assets Acquired, Accumulated Depreciation & Amortization | (5,050) | (3,161) | |
Assets Acquired, Carrying Value | 203,076 | 86,540 | |
Liabilities Assumed, Cost Basis | 64,621 | 3,360 | |
Liabilities Assumed, Accumulated Depreciation & Amortization | (421) | (131) | |
Liabilities Assumed, Carrying Value | 64,200 | 3,229 | |
Assets Acquired and Liabilities Assumed, Cost Basis | 143,505 | 86,341 | |
Asset Acquired and Liabilities Assumed, Carrying Value | 138,876 | 83,311 | |
Investments In Real Estate Equity | |||
Investment In Real Estate And Other Acquired Assets And Assumed Liabilities [Line Items] | |||
Investment in Real Estate, Cost Basis | 123,219 | 27,065 | |
Investment in Real Estate Accumulated Depreciation & Amortization | (2,251) | (191) | |
Investment in Real Estate, Carrying Value | 120,968 | 26,874 | |
Right of use Assets, Cost Basis | 19,664 | ||
Right of use Assets Accumulated Depreciation & Amortization | (205) | ||
Right of use Assets, Carrying Value | 19,459 | ||
Intangible Assets, Cost Basis | 11,474 | 1,726 | |
Intangible Assets, Accumulated Depreciation & Amortization | (2,594) | (806) | |
Intangible Assets, Carrying Value | 8,880 | 920 | |
Assets Acquired, Cost Basis | 154,357 | 28,791 | |
Assets Acquired, Accumulated Depreciation & Amortization | (5,050) | (997) | |
Assets Acquired, Carrying Value | 149,307 | 27,794 | |
Mortgage payable, Cost | 18,089 | ||
Mortgage payable, Accumulated Depreciation & Amortization | 155 | ||
Mortgage payable, Carrying Value | 18,244 | ||
Other Liabilities, Cost Basis | 247 | 247 | |
Other Liabilities, Accumulated Depreciation & Amortization | (183) | (78) | |
Other Liabilities, Carrying Value | 64 | 169 | |
Lease Liabilities, Cost Basis | 43,260 | ||
Lease liabilities, Accumulated Depreciation & Amortization | (393) | ||
Lease liabilities, Carrying Value | 42,867 | ||
Liabilities Assumed, Cost Basis | 61,596 | 247 | |
Liabilities Assumed, Accumulated Depreciation & Amortization | (421) | (78) | |
Liabilities Assumed, Carrying Value | 61,175 | 169 | |
Investments In Real Estate From Lending Activities | |||
Investment In Real Estate And Other Acquired Assets And Assumed Liabilities [Line Items] | |||
Investment in Real Estate, Cost Basis | 34,124 | ||
Investment in Real Estate Accumulated Depreciation & Amortization | (1,689) | ||
Investment in Real Estate, Carrying Value | 32,435 | ||
Right of use Assets, Cost Basis | 5,603 | ||
Right of use Assets Accumulated Depreciation & Amortization | (95) | ||
Right of use Assets, Carrying Value | 5,508 | ||
Intangible Assets, Cost Basis | 3,337 | ||
Intangible Assets, Accumulated Depreciation & Amortization | (380) | ||
Intangible Assets, Carrying Value | 2,957 | ||
Property Held for Sale, Cost Basis | 53,769 | 17,846 | |
Property Held for Sale, Carrying Value | 53,769 | 17,846 | |
Assets Acquired, Cost Basis | 53,769 | 60,910 | |
Assets Acquired, Accumulated Depreciation & Amortization | (2,164) | ||
Assets Acquired, Carrying Value | 53,769 | 58,746 | |
Liabilities held for sale liabilities, Cost Basis | 3,025 | 3,113 | |
Liabilities held for sale liabilities, Accumulated Depreciation & Amortization | (53) | ||
Liabilities held for sale liabilities, Carrying Value | $ 3,025 | $ 3,060 |
INVESTMENTS IN REAL ESTATE AN_5
INVESTMENTS IN REAL ESTATE AND OTHER ACQUIRED ASSETS AND ASSUMED LIABILITIES (Schedule of Acquired Assets and Assumed Liabilities (Parenthetical) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Investment In Real Estate And Other Acquired Assets And Assumed Liabilities [Line Items] | ||
Lease Expense | $ 94,000 | $ 39,000 |
Land Lease | ||
Investment In Real Estate And Other Acquired Assets And Assumed Liabilities [Line Items] | ||
Operating lease, remaining lease term | 93 years | |
Lease Expense | $ 1,100,000 | |
Investments In Real Estate Equity | ||
Investment In Real Estate And Other Acquired Assets And Assumed Liabilities [Line Items] | ||
Ground leases | 42,400,000 | |
Above market lease intangible asset | 19,000,000 | |
Intangible assets | 8,880,000 | 920,000 |
Acquired in-place lease intangible asset | 42,000 | 819,000 |
Leasing commission intangible asset | 39,000 | 101,000 |
Carrying value intangible assets | 9,748,000 | |
Investments In Real Estate Equity | Management Contract | ||
Investment In Real Estate And Other Acquired Assets And Assumed Liabilities [Line Items] | ||
Carrying value intangible assets | 3,100,000 | |
Investments In Real Estate Equity | Franchise Rights | ||
Investment In Real Estate And Other Acquired Assets And Assumed Liabilities [Line Items] | ||
Carrying value intangible assets | 5,300,000 | |
Investments In Real Estate Equity | Customer Lists | ||
Investment In Real Estate And Other Acquired Assets And Assumed Liabilities [Line Items] | ||
Intangible assets | 402,000 | |
Carrying value intangible assets | 427,000 | |
Investments In Real Estate Equity | Land | ||
Investment In Real Estate And Other Acquired Assets And Assumed Liabilities [Line Items] | ||
Investments in real estate | $ 38,400,000 | 22,400,000 |
Investments In Real Estate From Lending Activities | ||
Investment In Real Estate And Other Acquired Assets And Assumed Liabilities [Line Items] | ||
Ground leases | 3,100,000 | |
Intangible assets | 2,957,000 | |
Building renovation assets | 129,000 | |
Below market lease intangible asset | 2,400,000 | |
Investments In Real Estate From Lending Activities | Franchise Rights | ||
Investment In Real Estate And Other Acquired Assets And Assumed Liabilities [Line Items] | ||
Intangible assets | 2,600,000 | |
Investments In Real Estate From Lending Activities | Customer Lists | ||
Investment In Real Estate And Other Acquired Assets And Assumed Liabilities [Line Items] | ||
Intangible assets | $ 311,000 |
INVESTMENTS IN REAL ESTATE AN_6
INVESTMENTS IN REAL ESTATE AND OTHER ACQUIRED ASSETS AND ASSUMED LIABILITIES (Details) | 1 Months Ended | 12 Months Ended | ||||
Feb. 28, 2023 USD ($) | Sep. 30, 2022 USD ($) | Jul. 31, 2022 USD ($) | Dec. 31, 2022 USD ($) Property | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Investment In Real Estate And Other Acquired Assets And Assumed Liabilities [Line Items] | ||||||
Number of real estate properties | Property | 6 | |||||
Investments in real estate | $ 120,968,000 | $ 59,308,000 | ||||
Lease Expense | 94,000 | 39,000 | ||||
Amortization expense on intangible assets | 2,100,000 | 1,200,000 | $ 47,000 | |||
Amortization expense on intangible assets during 2023 | 1,300,000 | |||||
Amortization expense on intangible assets during 2024 | 1,200,000 | |||||
Amortization expense on intangible assets during 2025 | 1,100,000 | |||||
Amortization expense on intangible assets during 2026 | 1,000,000 | |||||
Amortization expense on intangible assets during 2027 | $ 1,000,000 | |||||
Proceeds from Sale of Property Held-for-sale | $ 19,300,000 | |||||
Selling costs of property held for sale | 532,000 | |||||
Gain (Loss) on Disposition of Property Plant Equipment | 1,900,000 | |||||
Property held for sale, carrying value | $ 36,900,000 | |||||
Investments in Real Estate | ||||||
Investment In Real Estate And Other Acquired Assets And Assumed Liabilities [Line Items] | ||||||
Number of real estate properties | Property | 4 | |||||
Properties Held for Sale | ||||||
Investment In Real Estate And Other Acquired Assets And Assumed Liabilities [Line Items] | ||||||
Number of real estate properties | Property | 2 | |||||
Subsequent Event | ||||||
Investment In Real Estate And Other Acquired Assets And Assumed Liabilities [Line Items] | ||||||
Proceeds from Sale of Property Held-for-sale | $ 15,100,000 | |||||
Ground Lease | Above-market Leases | ||||||
Investment In Real Estate And Other Acquired Assets And Assumed Liabilities [Line Items] | ||||||
Offsetting amortization on right of use assets and amortization lease liability | $ 153,000 | |||||
Offsetting amortization on right of use assets accretion and amortization lease liability | $ 341,000 | |||||
First Ground Lease | ||||||
Investment In Real Estate And Other Acquired Assets And Assumed Liabilities [Line Items] | ||||||
Original term of operating lease acquired | 99 years | |||||
Remaining term of operating lease acquired | 66 years | |||||
Lease Expense | $ 378,000 | 368,000 | ||||
Operating lease, remaining lease term | 64 years | |||||
Offsetting amortization and accretion on right of use assets and lease liabilities | $ 35,000 | 47,000 | ||||
Second Ground Lease | Above-market Leases | ||||||
Investment In Real Estate And Other Acquired Assets And Assumed Liabilities [Line Items] | ||||||
Original term of operating lease acquired | 99 years | |||||
Remaining term of operating lease acquired | 94 years | |||||
Lease Expense | $ 1,300,000 | |||||
Operating lease, remaining lease term | 93 years | |||||
Percentage of increase in ground lease payments | 3% | |||||
Property Held For Sale [Member] | ||||||
Investment In Real Estate And Other Acquired Assets And Assumed Liabilities [Line Items] | ||||||
Investments in real estate | $ 13,500,000 | |||||
CRE Whole Loan | ||||||
Investment In Real Estate And Other Acquired Assets And Assumed Liabilities [Line Items] | ||||||
Fair value of assets acquired | $ 14,300,000 | $ 51,600,000 | ||||
Investments In Real Estate Equity | ||||||
Investment In Real Estate And Other Acquired Assets And Assumed Liabilities [Line Items] | ||||||
Number of properties acquired | Property | 2 | |||||
Investments in real estate | $ 120,968,000 | $ 26,874,000 |
LEASES (Details)
LEASES (Details) - Office Space and Office Equipment | 12 Months Ended |
Dec. 31, 2022 | |
Minimum | |
Lessee Lease Description [Line Items] | |
Operating lease expiration date | 2024-01 |
Maximum | |
Lessee Lease Description [Line Items] | |
Operating lease expiration date | 2029-09 |
LEASES (Summary of Operating Le
LEASES (Summary of Operating Leases) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
Right of use assets | $ 822 | $ 443 |
Lease liabilities | $ (828) | $ (477) |
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Other Liabilities, Carrying Value | Other Liabilities, Carrying Value |
Weighted average remaining lease term: | 6 years 8 months 12 days | 6 years 7 months 6 days |
Weighted average discount rate: | 8.71% | 10.65% |
LEASES (Summary of Operating _2
LEASES (Summary of Operating Lease Costs and Cash Payments) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Lease Cost: | ||
Operating lease cost | $ 68 | $ 75 |
Other Information: | ||
Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases | $ 94 | $ 39 |
LEASES (Summary of Operating _3
LEASES (Summary of Operating Leases Cash Flow Obligations on Undiscounted, Annual Basis) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
2023 | $ 158 | |
2024 | 155 | |
2025 | 159 | |
2026 | 163 | |
2027 | 167 | |
Thereafter | 303 | |
Subtotal | 1,105 | |
Less: impact of discount | (277) | |
Total | $ 828 | $ 477 |
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Other Liabilities, Carrying Value | Other Liabilities, Carrying Value |
INVESTMENT SECURITIES AVAILAB_2
INVESTMENT SECURITIES AVAILABLE-FOR-SALE (Details) | 1 Months Ended | 12 Months Ended | ||
Mar. 31, 2021 Position | Dec. 31, 2022 Position | Dec. 31, 2021 USD ($) Position | Dec. 31, 2020 USD ($) Position | |
Schedule Of Trading Securities And Other Trading Assets [Line Items] | ||||
Total losses | $ 186,400,000 | |||
Proceeds from sale of investment securities available-for-sale | $ 2,958,000 | 37,764,000 | ||
67 CMBS | ||||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | ||||
Realized losses | $ 180,300,000 | |||
Positions Sold/Redeemed | Position | 67 | |||
CMBS | ||||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | ||||
Unrealized losses | $ 6,100,000 | |||
Proceeds from sale of investment securities available-for-sale | 3,000,000 | |||
Realized gain | $ 878,000 | |||
Positions Sold/Redeemed | Position | 2 | 0 | 0 | 2 |
INVESTMENTS IN UNCONSOLIDATED_2
INVESTMENTS IN UNCONSOLIDATED ENTITIES (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule Of Equity Method Investments [Line Items] | |||
Investments in unconsolidated entities | $ 1,548,000 | $ 1,548,000 | |
VIE, Not Primary Beneficiary | Investment in RCT I and II | |||
Schedule Of Equity Method Investments [Line Items] | |||
Ownership percentage in VIE | 100% | 100% | |
Investments in unconsolidated entities | $ 1,500,000 | $ 1,500,000 | |
Dividends from investments in unconsolidated entities | $ 91,000 | $ 65,000 | $ 76,000 |
VIE, Not Primary Beneficiary | Interest in RCT I | |||
Schedule Of Equity Method Investments [Line Items] | |||
Percentage of value of trusts owned | 3% | 3% | |
VIE, Not Primary Beneficiary | Interest in RCT II | |||
Schedule Of Equity Method Investments [Line Items] | |||
Percentage of value of trusts owned | 3% | 3% |
BORROWINGS (Schedule of Debt) (
BORROWINGS (Schedule of Debt) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | ||
Principal Outstanding | $ 1,884,879,000 | $ 1,840,052,000 |
Unamortized Issuance Costs and Discounts | 17,846,000 | 25,628,000 |
Outstanding Borrowings | $ 1,867,033,000 | $ 1,814,424,000 |
Weighted Average Borrowing Rate | 6.29% | 2.44% |
Weighted Average Remaining Maturity | 10 years 3 months 18 days | 12 years 8 months 12 days |
Value of Collateral | $ 2,178,430,000 | $ 2,149,085,000 |
XAN 2020-RSO8 Senior Notes | ||
Debt Instrument [Line Items] | ||
Principal Outstanding | 142,375,000 | |
Unamortized Issuance Costs and Discounts | 577,000 | |
Outstanding Borrowings | $ 141,798,000 | |
Weighted Average Borrowing Rate | 2.18% | |
Weighted Average Remaining Maturity | 13 years 2 months 12 days | |
Value of Collateral | $ 229,263,000 | |
XAN 2020-RSO9 Senior Notes | ||
Debt Instrument [Line Items] | ||
Principal Outstanding | 94,814,000 | |
Unamortized Issuance Costs and Discounts | 489,000 | |
Outstanding Borrowings | $ 94,325,000 | |
Weighted Average Borrowing Rate | 4.25% | |
Weighted Average Remaining Maturity | 15 years 3 months 18 days | |
Value of Collateral | $ 144,361,000 | |
ACR 2021-FL1 Senior Notes | ||
Debt Instrument [Line Items] | ||
Principal Outstanding | 675,223,000 | 675,223,000 |
Unamortized Issuance Costs and Discounts | 3,826,000 | 5,410,000 |
Outstanding Borrowings | $ 671,397,000 | $ 669,813,000 |
Weighted Average Borrowing Rate | 5.81% | 1.60% |
Weighted Average Remaining Maturity | 13 years 6 months | 14 years 6 months |
Value of Collateral | $ 802,643,000 | $ 802,643,000 |
ACR 2021-FL2 Senior Notes | ||
Debt Instrument [Line Items] | ||
Principal Outstanding | 567,000,000 | 567,000,000 |
Unamortized Issuance Costs and Discounts | 4,841,000 | 6,437,000 |
Outstanding Borrowings | $ 562,159,000 | $ 560,563,000 |
Weighted Average Borrowing Rate | 6.13% | 1.90% |
Weighted Average Remaining Maturity | 14 years 1 month 6 days | 15 years 1 month 6 days |
Value of Collateral | $ 700,000,000 | $ 700,000,000 |
Senior Secured Financing Facility | ||
Debt Instrument [Line Items] | ||
Principal Outstanding | 91,549,000 | 0 |
Unamortized Issuance Costs and Discounts | 3,659,000 | 3,432,000 |
Outstanding Borrowings | $ 87,890,000 | |
Outstanding Borrowings, Unamortized Issuance Costs and Discounts | $ (3,432,000) | |
Weighted Average Borrowing Rate | 7.94% | 5.75% |
Weighted Average Remaining Maturity | 5 years | 6 years 2 months 12 days |
Value of Collateral | $ 196,837,000 | $ 170,791,000 |
CRE - Term Warehouse Financing Facilities | ||
Debt Instrument [Line Items] | ||
Principal Outstanding | 330,849,000 | 71,078,000 |
Unamortized Issuance Costs and Discounts | 2,561,000 | 4,307,000 |
Outstanding Borrowings | $ 328,288,000 | $ 66,771,000 |
Weighted Average Borrowing Rate | 6.85% | 2.27% |
Weighted Average Remaining Maturity | 1 year 9 months 18 days | 2 years 9 months 18 days |
Value of Collateral | $ 453,550,000 | $ 102,027,000 |
4.50% Convertible Senior Notes | ||
Debt Instrument [Line Items] | ||
Principal Outstanding | 88,014,000 | |
Unamortized Issuance Costs and Discounts | 1,583,000 | |
Outstanding Borrowings | $ 86,431,000 | |
Weighted Average Borrowing Rate | 4.50% | |
Weighted Average Remaining Maturity | 227 days | |
Value of Collateral | $ 0 | |
5.75% Senior Unsecured Notes | ||
Debt Instrument [Line Items] | ||
Principal Outstanding | 150,000,000 | 150,000,000 |
Unamortized Issuance Costs and Discounts | 2,493,000 | 3,393,000 |
Outstanding Borrowings | $ 147,507,000 | $ 146,607,000 |
Weighted Average Borrowing Rate | 5.75% | 5.75% |
Weighted Average Remaining Maturity | 3 years 7 months 6 days | 4 years 7 months 6 days |
Value of Collateral | $ 0 | |
Unsecured Junior Subordinated Debentures | ||
Debt Instrument [Line Items] | ||
Principal Outstanding | $ 51,548,000 | 51,548,000 |
Unamortized Issuance Costs and Discounts | 0 | |
Outstanding Borrowings | $ 51,548,000 | $ 51,548,000 |
Weighted Average Borrowing Rate | 8.52% | 4.12% |
Weighted Average Remaining Maturity | 13 years 8 months 12 days | 14 years 8 months 12 days |
Value of Collateral | $ 0 | |
Mortgage Payable | ||
Debt Instrument [Line Items] | ||
Principal Outstanding | $ 18,710,000 | |
Unamortized Issuance Costs and Discounts | 466,000 | |
Outstanding Borrowings | $ 18,244,000 | |
Weighted Average Borrowing Rate | 8.08% | |
Weighted Average Remaining Maturity | 2 years 3 months 18 days | |
Value of Collateral | $ 25,400,000 |
BORROWINGS (Schedule of Debt)_2
BORROWINGS (Schedule of Debt) (Parenthetical) (Details) - USD ($) | 12 Months Ended | ||||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Aug. 31, 2022 | Feb. 28, 2022 | Aug. 16, 2021 | Aug. 31, 2017 | |
Debt Instrument [Line Items] | |||||||
Interest income | $ 125,539,000 | $ 100,774,000 | $ 101,303,000 | ||||
Accrued interest payable | 6,921,000 | 5,937,000 | |||||
Unamortized issuance costs and discounts | 17,846,000 | 25,628,000 | |||||
Outstanding Borrowings | $ 1,867,033,000 | $ 1,814,424,000 | |||||
4.50% Convertible Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate, stated percentage | 4.50% | 4.50% | 4.50% | 4.50% | 4.50% | ||
Unamortized issuance costs and discounts | $ 1,583,000 | ||||||
Outstanding Borrowings | $ 86,431,000 | ||||||
5.75% Senior Unsecured Notes | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate, stated percentage | 5.75% | 5.75% | 5.75% | ||||
Unamortized issuance costs and discounts | $ 2,493,000 | $ 3,393,000 | |||||
Outstanding Borrowings | 147,507,000 | 146,607,000 | |||||
12.00% Senior Unsecured Notes | |||||||
Debt Instrument [Line Items] | |||||||
Unamortized issuance costs and discounts | 306,000 | ||||||
Outstanding Borrowings | 0 | ||||||
CRE - Term Warehouse Financing Facilities | |||||||
Debt Instrument [Line Items] | |||||||
Accrued interest payable | 894,000 | 58,000 | |||||
Unamortized issuance costs and discounts | 2,561,000 | 4,307,000 | |||||
Outstanding Borrowings | 328,288,000 | 66,771,000 | |||||
ACR 2021-FL1 Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Interest income | 730,000 | ||||||
Exit fees | 228,000 | ||||||
Unamortized issuance costs and discounts | 3,826,000 | 5,410,000 | |||||
Outstanding Borrowings | $ 671,397,000 | $ 669,813,000 |
BORROWINGS (Securitization) (De
BORROWINGS (Securitization) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
ACR 2021-FL1 Senior Notes | |
Debt Instrument [Line Items] | |
Closing Date | 2021-05 |
Maturity Date | 2036-06 |
End of Designated Principal Reinvestment Period | 2023-05 |
Total Note Paydowns from Closing Date through December 31, 2021 | $ 0 |
ACR 2021-FL2 Senior Notes | |
Debt Instrument [Line Items] | |
Closing Date | 2021-12 |
Maturity Date | 2037-01 |
End of Designated Principal Reinvestment Period | 2023-12 |
Total Note Paydowns from Closing Date through December 31, 2021 | $ 0 |
BORROWINGS (XAN 2019-RSO7) (Det
BORROWINGS (XAN 2019-RSO7) (Details) $ in Millions | Apr. 30, 2019 USD ($) |
XAN 2019-RSO7 Senior Notes | Senior Notes | |
Debt Instrument [Line Items] | |
Closing transaction amount | $ 687.2 |
BORROWINGS (XAN 2020-RSO8) (Det
BORROWINGS (XAN 2020-RSO8) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2020 |
Debt Instrument [Line Items] | |||
Face amount of debt issued | $ 434,422 | $ 63,339 | |
XAN 2020-RSO8 Senior Notes | |||
Debt Instrument [Line Items] | |||
Closing transaction amount | $ 522,600 |
BORROWINGS (XAN 2020-RSO9) (Det
BORROWINGS (XAN 2020-RSO9) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2020 |
Debt Instrument [Line Items] | |||
Face amount of debt issued | $ 434,422 | $ 63,339 | |
XAN 2020-RSO9 Senior Notes | |||
Debt Instrument [Line Items] | |||
Closing transaction amount | $ 297,000 |
BORROWINGS (ACR 2021-FL1) (Deta
BORROWINGS (ACR 2021-FL1) (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |
May 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | |||
Face amount of debt issued | $ 434,422 | $ 63,339 | |
ACR 2021-FL1 Senior Notes | |||
Debt Instrument [Line Items] | |||
Closing transaction amount | $ 802,600 | ||
Face amount of debt issued | $ 675,200 | ||
Maturity Date | 2036-06 | ||
ACR 2021-FL1 Senior Notes | Subsidiary of ACRES Realty Funding, Inc | Preferred Stock | |||
Debt Instrument [Line Items] | |||
Interest ownership percentage on outstanding debt | 100% | ||
ACR 2021-FL1 Senior Notes | Debt Instrument, Class F | Subsidiary of ACRES Realty Funding, Inc | |||
Debt Instrument [Line Items] | |||
Interest ownership percentage on outstanding debt | 100% | ||
ACR 2021-FL1 Senior Notes | Debt Instrument, Class G | Subsidiary of ACRES Realty Funding, Inc | |||
Debt Instrument [Line Items] | |||
Interest ownership percentage on outstanding debt | 100% | ||
ACR 2021-FL1 Senior Notes | Debt Instrument, Class A | |||
Debt Instrument [Line Items] | |||
Face amount of debt issued | $ 431,400 | ||
ACR 2021-FL1 Senior Notes | Debt Instrument, Class A | London Interbank Offered Rate (LIBOR) | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1.20% | ||
ACR 2021-FL1 Senior Notes | Debt Instrument, Class A-S | |||
Debt Instrument [Line Items] | |||
Face amount of debt issued | $ 100,300 | ||
ACR 2021-FL1 Senior Notes | Debt Instrument, Class A-S | London Interbank Offered Rate (LIBOR) | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1.60% | ||
ACR 2021-FL1 Senior Notes | Debt Instrument, Class B | |||
Debt Instrument [Line Items] | |||
Face amount of debt issued | $ 37,100 | ||
ACR 2021-FL1 Senior Notes | Debt Instrument, Class B | London Interbank Offered Rate (LIBOR) | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1.80% | ||
ACR 2021-FL1 Senior Notes | Debt Instrument, Class C | |||
Debt Instrument [Line Items] | |||
Face amount of debt issued | $ 43,100 | ||
ACR 2021-FL1 Senior Notes | Debt Instrument, Class C | London Interbank Offered Rate (LIBOR) | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 2% | ||
ACR 2021-FL1 Senior Notes | Debt Instrument, Class D | |||
Debt Instrument [Line Items] | |||
Face amount of debt issued | $ 50,200 | ||
ACR 2021-FL1 Senior Notes | Debt Instrument, Class D | London Interbank Offered Rate (LIBOR) | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 2.65% | ||
ACR 2021-FL1 Senior Notes | Debt Instrument, Class E | |||
Debt Instrument [Line Items] | |||
Face amount of debt issued | $ 13,000 | ||
ACR 2021-FL1 Senior Notes | Debt Instrument, Class E | London Interbank Offered Rate (LIBOR) | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 3.10% |
BORROWINGS (ACR 2021-FL2) (Deta
BORROWINGS (ACR 2021-FL2) (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended |
Dec. 31, 2021 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | ||
Face amount of debt issued | $ 63,339 | $ 434,422 |
ACR 2021-FL2 Senior Notes | ||
Debt Instrument [Line Items] | ||
Closing transaction amount | 700,000 | |
Face amount of debt issued | $ 567,000 | |
Maturity Date | 2037-01 | |
ACR 2021-FL2 Senior Notes | Subsidiary of ACRES Realty Funding, Inc | Preferred Stock | ||
Debt Instrument [Line Items] | ||
Interest ownership percentage on outstanding debt | 100% | |
ACR 2021-FL2 Senior Notes | Debt Instrument, Class A | ||
Debt Instrument [Line Items] | ||
Face amount of debt issued | $ 385,000 | |
ACR 2021-FL2 Senior Notes | Debt Instrument, Class A | London Interbank Offered Rate (LIBOR) | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.40% | |
ACR 2021-FL2 Senior Notes | Debt Instrument, Class A-S | ||
Debt Instrument [Line Items] | ||
Face amount of debt issued | $ 30,600 | |
ACR 2021-FL2 Senior Notes | Debt Instrument, Class A-S | London Interbank Offered Rate (LIBOR) | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.75% | |
ACR 2021-FL2 Senior Notes | Debt Instrument, Class B | ||
Debt Instrument [Line Items] | ||
Face amount of debt issued | $ 38,500 | |
ACR 2021-FL2 Senior Notes | Debt Instrument, Class B | London Interbank Offered Rate (LIBOR) | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 2.25% | |
ACR 2021-FL2 Senior Notes | Debt Instrument, Class C | ||
Debt Instrument [Line Items] | ||
Face amount of debt issued | $ 47,300 | |
ACR 2021-FL2 Senior Notes | Debt Instrument, Class C | London Interbank Offered Rate (LIBOR) | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 2.65% | |
ACR 2021-FL2 Senior Notes | Debt Instrument, Class D | ||
Debt Instrument [Line Items] | ||
Face amount of debt issued | $ 51,600 | |
ACR 2021-FL2 Senior Notes | Debt Instrument, Class D | London Interbank Offered Rate (LIBOR) | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 3.10% | |
ACR 2021-FL2 Senior Notes | Debt Instrument, Class F | Subsidiary of ACRES Realty Funding, Inc | ||
Debt Instrument [Line Items] | ||
Interest ownership percentage on outstanding debt | 100% | |
ACR 2021-FL2 Senior Notes | Debt Instrument, Class G | Subsidiary of ACRES Realty Funding, Inc | ||
Debt Instrument [Line Items] | ||
Interest ownership percentage on outstanding debt | 100% | |
ACR 2021-FL2 Senior Notes | Debt Instrument, Class E | ||
Debt Instrument [Line Items] | ||
Face amount of debt issued | $ 14,000 | |
ACR 2021-FL2 Senior Notes | Debt Instrument, Class E | London Interbank Offered Rate (LIBOR) | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 4% |
BORROWINGS (Unsecured Junior Su
BORROWINGS (Unsecured Junior Subordinated Debentures) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2016 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | |||
Face amount of debt issued | $ 434,422,000 | $ 63,339,000 | |
Unsecured Junior Subordinated Debentures | RCT I entity | |||
Debt Instrument [Line Items] | |||
Face amount of debt issued | $ 25,800,000 | ||
Debt issuance costs, amortization period (in years) | 10 years | ||
Interest rate at period end | 8.68% | 4.17% | |
Unamortized debt issuance costs | $ 0 | $ 0 | |
Maturity Date | 2036-06 | ||
Unsecured Junior Subordinated Debentures | RCT II entity | |||
Debt Instrument [Line Items] | |||
Face amount of debt issued | $ 25,800,000 | ||
Debt issuance costs, amortization period (in years) | 10 years | ||
Interest rate at period end | 8.36% | 4.08% | |
Unamortized debt issuance costs | $ 0 | $ 0 | |
Maturity Date | 2036-10 |
BORROWINGS (4.50% Convertible S
BORROWINGS (4.50% Convertible Senior Notes) (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||
Aug. 31, 2022 | Feb. 28, 2022 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Aug. 31, 2017 | |
Debt Instrument [Line Items] | ||||||||||||||
Face amount of debt issued | $ 434,422,000 | $ 63,339,000 | $ 434,422,000 | $ 63,339,000 | ||||||||||
Loss on extinguishment of debt | (460,000) | (9,006,000) | ||||||||||||
Interest expense | $ 28,733,000 | $ 22,939,000 | $ 15,745,000 | $ 14,907,000 | $ 14,615,000 | $ 14,534,000 | $ 18,702,000 | $ 13,724,000 | $ 82,324,000 | $ 61,575,000 | $ 58,008,000 | |||
4.50% Convertible Senior Notes | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Face amount of debt issued | $ 143,800,000 | |||||||||||||
Debt instrument, interest rate, stated percentage | 4.50% | 4.50% | 4.50% | 4.50% | 4.50% | 4.50% | 4.50% | |||||||
Repurchase of convertible senior notes | $ 39,800,000 | $ 55,700,000 | $ 55,700,000 | |||||||||||
Charge to earnings | 574,000 | 1,500,000 | ||||||||||||
Loss on extinguishment of debt | 460,000 | 1,200,000 | ||||||||||||
Interest expense | $ 114,000 | $ 304,000 | ||||||||||||
Repayments of Notes Payable | $ 48,200,000 | |||||||||||||
Effective interest rate | 7.43% | 7.43% | 7.43% | 7.43% |
BORROWINGS (5.75% Senior Unsecu
BORROWINGS (5.75% Senior Unsecured Notes Due 2026) (Details) - USD ($) | 12 Months Ended | ||
Aug. 16, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | |||
Face amount of debt issued | $ 434,422,000 | $ 63,339,000 | |
5.75% Senior Unsecured Notes | |||
Debt Instrument [Line Items] | |||
Face amount of debt issued | $ 150,000,000 | ||
Debt instrument, interest rate, stated percentage | 5.75% | 5.75% | 5.75% |
Percentage of principal amount to be redeemed | 100% | ||
Debt instrument redemption term | Prior to May 15, 2026, the Company may at its option redeem the 5.75% Senior Unsecured Notes, in whole or in part, at a redemption price equal to the sum of (i) 100% of the principal amount of the notes to be redeemed, plus accrued and unpaid interest to, but not including, the redemption date, and (ii) a make-whole premium. On or after May 15, 2026, the Company may at its option redeem the 5.75% Senior Unsecured Notes, at any time, in whole or in part, on not less than 15 nor more than 60 days’ prior notice, at a redemption price equal to 100% of the principal amount of the 5.75% Senior Unsecured Notes to be redeemed, plus accrued and unpaid interest to, but not including, the redemption date | ||
Minimum invested amount in capital | $ 75,000,000 | ||
Minimum percentage of aggregate principal amount | 25% |
BORROWINGS (12.00% Senior Unsec
BORROWINGS (12.00% Senior Unsecured Notes) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||||||
Aug. 18, 2021 | Jul. 31, 2020 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Jul. 31, 2022 | Jan. 31, 2022 | |
Debt Instrument [Line Items] | |||||||||||||||
Face amount of debt issued | $ 434,422,000 | $ 63,339,000 | $ 434,422,000 | $ 63,339,000 | |||||||||||
Loss on extinguishment of debt | (460,000) | (9,006,000) | |||||||||||||
Interest expense | $ 28,733,000 | $ 22,939,000 | $ 15,745,000 | $ 14,907,000 | 14,615,000 | $ 14,534,000 | $ 18,702,000 | $ 13,724,000 | $ 82,324,000 | 61,575,000 | $ 58,008,000 | ||||
Note and Warrant Purchase Agreement | 12.00% Senior Unsecured Notes | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt instrument, discount | $ 3,100,000 | $ 3,100,000 | |||||||||||||
Note and Warrant Purchase Agreement | Oaktree and MassMutual | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Warrants expiration term | 7 years | ||||||||||||||
Note and Warrant Purchase Agreement | Oaktree and MassMutual | 12.00% Senior Unsecured Notes | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt instrument, maximum borrowing capacity | $ 125,000,000 | ||||||||||||||
Debt instrument, interest rate, stated percentage | 12% | ||||||||||||||
Debt instrument, pay-in-kind interest rate maximum percentage | 3.25% | ||||||||||||||
Face amount of debt issued | $ 50,000,000 | $ 75,000,000 | |||||||||||||
Debt instrument redemption interest amount | 329,000 | ||||||||||||||
Debt instrument make-whole amount | 5,000,000 | ||||||||||||||
Debt instrument, charge to earnings in connection with redemption | 8,000,000 | ||||||||||||||
Debt instrument, redemption amount | 55,300,000 | ||||||||||||||
Loss on extinguishment of debt | 7,800,000 | ||||||||||||||
Debt instrument net make-whole amount | 5,000,000 | ||||||||||||||
Debt instrument, acceleration of remaining market discount | 2,800,000 | ||||||||||||||
Interest expense | $ 218,000 | ||||||||||||||
Note and Warrant Purchase Agreement | Oaktree | 12.00% Senior Unsecured Notes | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Face amount of debt issued | $ 42,000,000 | ||||||||||||||
Note and Warrant Purchase Agreement | MassMutual | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Warrants to purchase additional shares of common stock | 74,666 | ||||||||||||||
Note and Warrant Purchase Agreement | MassMutual | 12.00% Senior Unsecured Notes | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Face amount of debt issued | $ 8,000,000 |
BORROWINGS (Senior Secured Fina
BORROWINGS (Senior Secured Financing, Term Warehouse Financing Facilities and Mortgage Payable) (Details) $ in Thousands | Dec. 31, 2022 USD ($) Loan | Dec. 31, 2021 USD ($) Loan |
Debt Instrument [Line Items] | ||
Outstanding Borrowings | $ 434,422 | $ 63,339 |
Value of Collateral | $ 675,787 | $ 272,818 |
Weighted Average Interest Rate | 6.29% | 2.44% |
Mortgage Payable | Readycap Commercial, LLC | ||
Debt Instrument [Line Items] | ||
Outstanding Borrowings | $ 18,244 | |
Value of Collateral | $ 25,400 | |
Number of Positions as Collateral | Loan | 1 | |
Weighted Average Interest Rate | 8.08% | |
Senior Secured Financing Facility | Massachusetts Mutual Life Insurance Company | ||
Debt Instrument [Line Items] | ||
Outstanding Borrowings, Unamortized Issuance Costs and Discounts | $ 87,890 | $ (3,432) |
Value of Collateral | $ 196,837 | $ 170,791 |
Number of Positions as Collateral | Loan | 8 | 9 |
Weighted Average Interest Rate | 7.94% | 5.75% |
CRE - Term Warehouse Financing Facilities | JP Morgan Chase Bank, N.A. | ||
Debt Instrument [Line Items] | ||
Outstanding Borrowings | $ 186,783 | $ 18,875 |
Value of Collateral | $ 255,095 | $ 37,167 |
Number of Positions as Collateral | Loan | 11 | 3 |
Weighted Average Interest Rate | 6.74% | 2.85% |
CRE - Term Warehouse Financing Facilities | Morgan Stanley Mortgage Capital Holdings LLC | ||
Debt Instrument [Line Items] | ||
Outstanding Borrowings | $ 141,505 | $ 47,896 |
Value of Collateral | $ 198,455 | $ 64,860 |
Number of Positions as Collateral | Loan | 10 | 3 |
Weighted Average Interest Rate | 7% | 2.03% |
BORROWINGS (Senior Secured Fi_2
BORROWINGS (Senior Secured Financing, Term Warehouse Financing Facilities and Mortgage Payable) (Parenthetical) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | ||
Unamortized issuance costs and discounts | $ 17,846,000 | $ 25,628,000 |
Mortgage Payable | Readycap Commercial, LLC | ||
Debt Instrument [Line Items] | ||
Unamortized issuance costs and discounts | 466,000 | |
Senior Secured Financing Facility | Massachusetts Mutual Life Insurance Company | ||
Debt Instrument [Line Items] | ||
Unamortized issuance costs and discounts | 3,700,000 | 3,400,000 |
Interest Receivable | JP Morgan Chase Bank, N.A. | ||
Debt Instrument [Line Items] | ||
Unamortized issuance costs and discounts | 356,000 | |
CRE - Term Warehouse Financing Facilities | JP Morgan Chase Bank, N.A. | ||
Debt Instrument [Line Items] | ||
Unamortized issuance costs and discounts | $ 1,100,000 | 1,800,000 |
Maturity Date | 2022-10 | |
CRE - Term Warehouse Financing Facilities | Morgan Stanley Mortgage Capital Holdings LLC | ||
Debt Instrument [Line Items] | ||
Unamortized issuance costs and discounts | $ 1,400,000 | $ 2,200,000 |
BORROWINGS (Amount at Risk Unde
BORROWINGS (Amount at Risk Under Financing Arrangements) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | ||
Weighted Average Remaining Maturity | 10 years 3 months 18 days | 12 years 8 months 12 days |
Weighted Average Interest Rate | 6.29% | 2.44% |
Senior Secured Financing Facility | ||
Debt Instrument [Line Items] | ||
Weighted Average Remaining Maturity | 5 years | 6 years 2 months 12 days |
Weighted Average Interest Rate | 7.94% | 5.75% |
Senior Secured Financing Facility | Massachusetts Mutual Life Insurance Company [Member] | ||
Debt Instrument [Line Items] | ||
Amount at Risk | $ 105,818 | |
Weighted Average Remaining Maturity | 5 years | |
Weighted Average Interest Rate | 7.94% | |
CRE - Term Warehouse Financing Facilities | ||
Debt Instrument [Line Items] | ||
Weighted Average Remaining Maturity | 1 year 9 months 18 days | 2 years 9 months 18 days |
Weighted Average Interest Rate | 6.85% | 2.27% |
CRE - Term Warehouse Financing Facilities | JP Morgan Chase Bank, N.A. | ||
Debt Instrument [Line Items] | ||
Amount at Risk | $ 68,768 | |
Weighted Average Remaining Maturity | 1 year 9 months 18 days | |
Weighted Average Interest Rate | 6.74% | |
CRE - Term Warehouse Financing Facilities | Morgan Stanley Mortgage Capital Holdings LLC | ||
Debt Instrument [Line Items] | ||
Amount at Risk | $ 56,817 | |
Weighted Average Remaining Maturity | 1 year 9 months 18 days | |
Weighted Average Interest Rate | 7% | |
Mortgages | Readycap Commercial L L C [Member] | ||
Debt Instrument [Line Items] | ||
Amount at Risk | $ 6,602 | |
Weighted Average Remaining Maturity | 2 years 3 months 18 days | |
Weighted Average Interest Rate | 8.08% |
BORROWINGS (Senior Secured Fi_3
BORROWINGS (Senior Secured Financing Facility) (Details) - USD ($) | 1 Months Ended | ||||
Jul. 31, 2020 | Dec. 31, 2022 | Aug. 31, 2022 | Jul. 31, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | |||||
Face amount of debt issued | $ 434,422,000 | $ 63,339,000 | |||
Loan and Servicing Agreement | Senior Secured Financing Facility | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, commitment period of each loan series | 3 months | ||||
Debt instrument, final maturity period of each loan series | 5 years | ||||
Loan and Servicing Agreement | Senior Secured Financing Facility | Maximum | |||||
Debt Instrument [Line Items] | |||||
Face amount of debt issued | $ 500,000,000 | ||||
Loan and Servicing Agreement | Senior Secured Financing Facility | MassMutual and Other Lenders | |||||
Debt Instrument [Line Items] | |||||
Face amount of debt issued | $ 250,000,000 | ||||
Debt instrument, interest rate, stated percentage | 5.75% | ||||
Debt instrument, initial availability period | 2 years | ||||
Debt instrument, unused commitment fee | 0.50% | ||||
Debt instrument, frequency of commitment fee payment | monthly | ||||
Maximum commitment drawn percentage to be maintained to avoid unused commitment fee | 75% | ||||
Percentage of loan to collateral value | 55% | ||||
Loan and Servicing Agreement | Senior Secured Financing Facility | MassMutual and Other Lenders | If Borrower Obtains Rating of BBB or Higher by October 31, 2020 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, maturity date | Jul. 31, 2027 | ||||
Fifth Amendment Mass Mutual Loan Agreement [Member] | Senior Secured Financing Facility | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, interest rate, stated percentage | 5.75% | ||||
Debt Instrument Initial Availability Date | Jul. 31, 2022 | ||||
Extended availability date | Aug. 31, 2022 | ||||
Sixth Amendment MassMutual Loan Agreement | Senior Secured Financing Facility | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument Initial Availability Date | Aug. 31, 2022 | ||||
Extended availability date | Oct. 15, 2022 |
BORROWINGS (CRE - Term Warehous
BORROWINGS (CRE - Term Warehouse Financing Facilities) (Details) - CRE - Term Warehouse Financing Facilities | 1 Months Ended | ||||
Nov. 08, 2021 USD ($) | Oct. 31, 2021 | Oct. 31, 2018 USD ($) | Jul. 31, 2018 USD ($) Extension | Apr. 30, 2018 USD ($) | |
Master Repurchase and Securities Agreement | Wells Fargo Bank, N.A. | |||||
Debt Instrument [Line Items] | |||||
Maximum facility amount | $ 250,000,000 | ||||
Maturity Date | 2020-07 | ||||
Number of options to extend | Extension | 3 | ||||
Option to extend, term | 1 year | ||||
Master Repurchase and Securities Agreement | Morgan Stanley Mortgage Capital Holdings LLC | |||||
Debt Instrument [Line Items] | |||||
Maximum facility amount | $ 250,000,000 | ||||
Master Repurchase Agreement | Barclays Bank PLC | |||||
Debt Instrument [Line Items] | |||||
Maximum facility amount | $ 250,000,000 | ||||
Maturity Date | 2022-10 | ||||
Debt extended maturity month and year | 2021-10 | ||||
Master Repurchase Agreement | JP Morgan Chase Bank, N.A. | |||||
Debt Instrument [Line Items] | |||||
Maximum facility amount | $ 250,000,000 | ||||
Maturity Date | 2024-10 | ||||
Guaranty Agreement, maximum percentage of then current unpaid aggregate repurchase price of all purchased assets | 25% | ||||
Master Repurchase and Securities Contract Agreement | Morgan Stanley Mortgage Capital Holdings LLC | |||||
Debt Instrument [Line Items] | |||||
Maximum facility amount | $ 250,000,000 | ||||
Maturity Date | 2024-11 | ||||
Option to extend, term | 1 year | ||||
Guaranty Agreement, maximum percentage of then current unpaid aggregate repurchase price of all purchased assets | 25% |
BORROWINGS (Mortgage Payable) (
BORROWINGS (Mortgage Payable) (Details) - Loan Agreement - Mortgages - Readycap Commercial, LLC $ in Millions | 1 Months Ended | |
Oct. 31, 2022 Extension | Apr. 30, 2022 USD ($) | |
Debt Instrument [Line Items] | ||
Maximum facility amount | $ 20.4 | |
Advanced in initial funding | $ 18.7 | |
Maturity Date | 2025-04 | |
Number of options to extend | Extension | 2 | |
Option to extend, term | 1 year | |
Basis spread on variable rate | 3.80% | |
30 Day Average SOFR Rate | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 3.80% |
BORROWINGS (Construction Loan)
BORROWINGS (Construction Loan) (Details) - Constraction Loan Agreement - Subsequent Event $ in Millions | 1 Months Ended |
Jan. 31, 2023 USD ($) Extension | |
Oceanview Life and Annuity Company | |
Debt Instrument [Line Items] | |
Maximum facility amount | $ 48 |
Maturity Date | 2025-02 |
Number of options to extend | Extension | 3 |
Option to extend, term | 1 year |
Oceanview Life and Annuity Company | one-month SOFR Rate | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 6% |
Florida Pace Funding Agency | |
Debt Instrument [Line Items] | |
Maximum facility amount | $ 15.5 |
Borrowing Rate | 7.26% |
Maturity Date | 2053-07 |
BORROWINGS (Contractual Commitm
BORROWINGS (Contractual Commitments) (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Debt Instrument [Line Items] | |
Total | $ 1,884,879 |
2023 | 0 |
2024 | 330,849 |
2025 | 18,710 |
2026 | 150,000 |
2027 and Thereafter | 1,385,320 |
CRE securitizations | |
Debt Instrument [Line Items] | |
Total | 1,242,223 |
2023 | 0 |
2024 | 0 |
2025 | 0 |
2026 | 0 |
2027 and Thereafter | 1,242,223 |
Senior Secured Financing Facility | |
Debt Instrument [Line Items] | |
Total | 91,549 |
2023 | 0 |
2024 | 0 |
2025 | 0 |
2026 | 0 |
2027 and Thereafter | 91,549 |
CRE - Term Warehouse Financing Facilities | |
Debt Instrument [Line Items] | |
Total | 330,849 |
2023 | 0 |
2024 | 330,849 |
2025 | 0 |
2026 | 0 |
2027 and Thereafter | 0 |
Mortgage Payable | |
Debt Instrument [Line Items] | |
Total | 18,710 |
2023 | 0 |
2024 | 0 |
2025 | 18,710 |
2026 | 0 |
2027 and Thereafter | 0 |
5.75% Senior Unsecured Notes | |
Debt Instrument [Line Items] | |
Total | 150,000 |
2023 | 0 |
2024 | 0 |
2025 | 0 |
2026 | 150,000 |
2027 and Thereafter | 0 |
Unsecured Junior Subordinated Debentures | |
Debt Instrument [Line Items] | |
Total | 51,548 |
2023 | 0 |
2024 | 0 |
2025 | 0 |
2026 | 0 |
2027 and Thereafter | $ 51,548 |
SHARE ISSUANCE AND REPURCHASE (
SHARE ISSUANCE AND REPURCHASE (Details) - USD ($) | 2 Months Ended | 12 Months Ended | ||||||
Jul. 31, 2020 | Jun. 30, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Jul. 31, 2022 | Nov. 30, 2021 | Oct. 04, 2021 | Nov. 30, 2020 | |
Class Of Stock [Line Items] | ||||||||
Proceeds from issuance of preferred stock, net | $ (101,000) | $ 110,605,000 | ||||||
Shares repurchased during period, value | $ 9,100,000 | $ 18,400,000 | ||||||
Shares repurchased during period, shares | 848,978 | 1,346,424 | ||||||
Warrant Exercise price | $ 0.03 | |||||||
Equity and Debt Securities Repurchase Program | ||||||||
Class Of Stock [Line Items] | ||||||||
Stock repurchase program, authorized amount (up to) | $ 20,000,000 | $ 20,000,000 | ||||||
Stock repurchase program, remaining authorized repurchase amount | $ 7,200,000 | |||||||
Note and Warrant Purchase Agreement | Oaktree and MassMutual | ||||||||
Class Of Stock [Line Items] | ||||||||
Warrant Exercise price | $ 0.03 | |||||||
Warrants recorded in additional paid-in capital, fair value | $ 3,100,000 | |||||||
Warrants expiration term | 7 years | |||||||
Note and Warrant Purchase Agreement | Oaktree | ||||||||
Class Of Stock [Line Items] | ||||||||
Warrants issued to purchase common stock | 391,995 | |||||||
Purchase price of common stock for warrants issued | $ 42,000,000 | |||||||
Note and Warrant Purchase Agreement | MassMutual | ||||||||
Class Of Stock [Line Items] | ||||||||
Warrants issued to purchase common stock | 74,666 | |||||||
Purchase price of common stock for warrants issued | $ 8,000,000 | |||||||
Warrants to purchase additional shares of common stock | 74,666 | |||||||
Note and Warrant Purchase Agreement | Maximum | Oaktree and MassMutual | ||||||||
Class Of Stock [Line Items] | ||||||||
Aggregate purchase of common stock warrants | 1,166,653 | |||||||
Series D Preferred Stock | ||||||||
Class Of Stock [Line Items] | ||||||||
Preferred stock, shares outstanding (in shares) | 4,600,000 | |||||||
Series D Preferred Stock | Equity Distribution Agreement | ||||||||
Class Of Stock [Line Items] | ||||||||
Preferred stock, shares issued (in shares) | 7,857 | |||||||
Proceeds from issuance of preferred stock, net | $ 194,000 | |||||||
Series D Preferred Stock | Equity Distribution Agreement | Maximum | JonesTrading Institutional Services LLC | ||||||||
Class Of Stock [Line Items] | ||||||||
Number of shares that may be issued or sold from time to time under agreement | 2,200,000 | |||||||
Commission fee payable of gross proceeds from sale of stock in percentage | 3% | |||||||
7.875% Series D Preferred Stock | ||||||||
Class Of Stock [Line Items] | ||||||||
Preferred stock, shares issued (in shares) | 4,600,000 | 4,607,857 | 4,607,857 | |||||
Preferred stock, coupon authorized | 7.875% | 7.875% | 7.875% | |||||
Offering price | $ 25 | |||||||
Preferred stock, liquidation preference (in dollars per share) | $ 25 | $ 25 | ||||||
Proceeds from issuance of preferred stock, net | $ 110,400,000 | |||||||
Underwriting discounts and other offering expenses | $ 4,600,000 | |||||||
Preferred stock, shares outstanding (in shares) | 4,607,857 | 4,607,857 | ||||||
8.625% Series C Preferred Stock | ||||||||
Class Of Stock [Line Items] | ||||||||
Preferred stock, shares issued (in shares) | 4,800,000 | 4,800,000 | ||||||
Preferred stock, coupon authorized | 8.625% | 8.625% | ||||||
Preferred stock, liquidation preference (in dollars per share) | $ 25 | $ 25 | ||||||
Preferred stock, shares outstanding (in shares) | 4,800,000 | 4,800,000 | ||||||
Preferred stock, weighted average issuance price (in dollars per share) | $ 25 | |||||||
8.625% Series C Preferred Stock | London Interbank Offered Rate (LIBOR) | ||||||||
Class Of Stock [Line Items] | ||||||||
Dividend payment rate, variable, basis spread on variable rate | 5.927% |
SHARE-BASED COMPENSATION (Detai
SHARE-BASED COMPENSATION (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | May 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Vest in installments | 4 years | ||||
Total unrecognized compensation costs related to unvested restricted stock | $ 4,500,000 | ||||
Cost is expected to be recognized over a weighted average period | 3 years | ||||
Manager Pursuant To Management Agreement | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Cash awards, percentage (up to) | 75% | ||||
Common stock awards, percentage (at least) | 25% | ||||
Incentive management fee pursuant to the management agreement | $ 340,000 | $ 0 | $ 0 | ||
Incentive management fee payable in cash pursuant to the management agreement | 170,000 | ||||
Incentive management fee payable in common stock pursuant to the management agreement | $ 170,000 | ||||
Manager Pursuant To Management Agreement | Common Stock | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Shares issuable pursuant to the management agreement (in shares) | 17,780 | ||||
Restricted Stock | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Recognized stock-based compensation expense | $ 3,600,000 | $ 1,700,000 | $ 3,100,000 | ||
2007 Omnibus Equity Compensation Plan | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Number of share authorized for issue (in shares) | 1,100,000 | ||||
Share based compensation expiration period | 2031-06 | 2029-06 | |||
Common shares granted | 1,700,817 |
SHARE-BASED COMPENSATION (Commo
SHARE-BASED COMPENSATION (Common Stock Activity) (Details) - Restricted Stock | 12 Months Ended |
Dec. 31, 2022 $ / shares shares | |
Restricted common stock transactions | |
Unvested shares, beginning of period (in shares) | 333,329 |
Issued (shares) | 333,333 |
Vested (shares) | (83,329) |
Forfeited (shares) | 0 |
Unvested shares, end of period (in shares) | 583,333 |
Weighted-Average Grant-Date Fair Value, beginning of period (in shares) | $ / shares | $ 17.39 |
Weighted-Average Grant-Date Fair Value, Issued | $ / shares | 11.85 |
Weighted-Average Grant-Date Fair Value, Vested | $ / shares | 17.39 |
Weighted-Average Grant-Date Fair Value, Forfeited | $ / shares | 0 |
Weighted-Average Grant-Date Fair Value, end of period (in shares) | $ / shares | $ 14.22 |
Manager | |
Restricted common stock transactions | |
Unvested shares, beginning of period (in shares) | 299,999 |
Issued (shares) | 299,999 |
Vested (shares) | (74,999) |
Forfeited (shares) | 0 |
Unvested shares, end of period (in shares) | 524,999 |
Directors | |
Restricted common stock transactions | |
Unvested shares, beginning of period (in shares) | 33,330 |
Issued (shares) | 33,334 |
Vested (shares) | (8,330) |
Forfeited (shares) | 0 |
Unvested shares, end of period (in shares) | 58,334 |
SHARE-BASED COMPENSATION (Com_2
SHARE-BASED COMPENSATION (Common Stock Expected to Vest) (Details) - Restricted Stock - shares | Dec. 31, 2022 | Dec. 31, 2021 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
2023 | 166,658 | |
2024 | 166,658 | |
2025 | 166,671 | |
2026 | 83,346 | |
Total | 583,333 | 333,329 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |||||||||||
Net income (loss) | $ (2,666) | $ 5,486 | $ 5,522 | $ 2,084 | $ 12,156 | $ (4,928) | $ 13,639 | $ 13,056 | $ 10,426 | $ 33,923 | $ (197,713) |
Net income allocated to preferred shares | (4,856) | (4,855) | (4,856) | (4,855) | (4,854) | (4,877) | (3,568) | (2,588) | (19,422) | (15,887) | (10,350) |
Net loss allocable to non-controlling interest, net of taxes | 91 | 82 | 24 | 197 | 0 | 0 | |||||
NET (LOSS) INCOME ALLOCABLE TO COMMON SHARES | $ (7,431) | $ 713 | $ 690 | $ (2,771) | $ 7,302 | $ (9,805) | $ 10,071 | $ 10,468 | $ (8,799) | $ 18,036 | $ (208,063) |
Weighted average number of common shares outstanding: | |||||||||||
Weighted average number of common shares outstanding - basic | 8,380,490 | 9,269,607 | 10,566,904 | ||||||||
Weighted average number of warrants outstanding | 431,271 | 466,661 | 196,357 | ||||||||
Total weighted average number of common shares outstanding - basic | 8,811,761 | 9,736,268 | 10,763,261 | ||||||||
Effect of dilutive securities - unvested restricted stock | 0 | 26,949 | 0 | ||||||||
Weighted average number of common shares outstanding - diluted | 8,811,761 | 9,763,217 | 10,763,261 | ||||||||
Net (loss) income per common share - basic | $ (0.87) | $ 0.08 | $ 0.08 | $ (0.30) | $ 0.77 | $ (1.03) | $ 1.04 | $ 1.03 | $ (1) | $ 1.85 | $ (19.33) |
Net (loss) income per common share - diluted | $ (0.87) | $ 0.08 | $ 0.08 | $ (0.30) | $ 0.76 | $ (1.03) | $ 1.04 | $ 1.03 | $ (1) | $ 1.85 | $ (19.33) |
DISTRIBUTIONS (Details)
DISTRIBUTIONS (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Class of Stock [Line Items] | |||
REIT required taxable income distribution, percentage (at least) | 90% | ||
REIT taxable income distribution required for exempt federal income taxes, percentage | 100% | ||
Common Stock | |||
Class of Stock [Line Items] | |||
Dividend per share (in dollars per share) | $ 0 | $ 0 | $ 0 |
DISTRIBUTIONS (Distributions De
DISTRIBUTIONS (Distributions Declared) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | |
Series D Preferred Stock | ||||||||||
Class Of Stock [Line Items] | ||||||||||
Date Paid | Jan. 30, 2023 | Oct. 31, 2022 | Aug. 01, 2022 | May 02, 2022 | Jan. 31, 2022 | Nov. 01, 2021 | Jul. 30, 2021 | |||
Total Distribution Paid | $ 2,268 | $ 2,268 | $ 2,268 | $ 2,268 | $ 2,268 | $ 2,264 | $ 1,736 | |||
Distribution Per Share | $ 0.4921875 | $ 0.4921875 | $ 0.4921875 | $ 0.4921875 | $ 0.4921875 | $ 0.4921875 | $ 0.3773440 | |||
Series C Preferred Stock | ||||||||||
Class Of Stock [Line Items] | ||||||||||
Date Paid | Jan. 30, 2023 | Oct. 31, 2022 | Aug. 01, 2022 | May 02, 2022 | Jan. 31, 2022 | Nov. 01, 2021 | Jul. 30, 2021 | Apr. 30, 2021 | Feb. 01, 2021 | Oct. 25, 2020 |
Total Distribution Paid | $ 2,587 | $ 2,587 | $ 2,588 | $ 2,588 | $ 2,588 | $ 2,588 | $ 2,588 | $ 2,588 | $ 2,587 | $ 7,763 |
Distribution Per Share | $ 0.5390625 | $ 0.5390625 | $ 0.5390625 | $ 0.5390625 | $ 0.5390625 | $ 0.5390625 | $ 0.5390625 | $ 0.5390625 | $ 0.5390625 | $ 1.6171875 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE (LOSS) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Beginning balance | $ 448,195 |
Ending balance | 435,468 |
Net Unrealized (Loss) Gain on Derivatives | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Beginning balance | (8,127) |
Amounts reclassified from accumulated other comprehensive loss | 1,733 |
Ending balance | $ (6,394) |
RELATED PARTY TRANSACTIONS (Man
RELATED PARTY TRANSACTIONS (Management Agreement) (Details) | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2023 USD ($) | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 USD ($) shares | Dec. 31, 2022 USD ($) Period shares | |
Related Party Transaction [Line Items] | ||||||
Investment management fee equity multiplier | 1.50% | 1.50% | ||||
Minimum monthly compensation amount included in base management fees payable | $ 442,000 | $ 442,000 | ||||
Incentive compensation multiplier | 20% | 20% | ||||
Incentive compensation multiplier, weighted average shares | shares | 10,293,783 | 10,293,783 | ||||
Incentive compensation, weighted average price share multiplier, one | 1.75% | 1.75% | ||||
Weighted average price share multiplier | 0.4375% | 0.4375% | ||||
Weighted average price share multiplier, description | one-fourth of the Ten Year Treasury Rate for such quarter | |||||
Incentive compensation, maximum percentage of net income before such fees | 20% | 20% | ||||
Incentive compensation paid in common stock minimum holding period before sale | 1 year | |||||
Average closing price period for shares traded on a securities exchange | 30 days | |||||
Average closing price time period before issuance for shares traded on a securities exchange | 3 days | |||||
Average closing price period for shares traded over-the-counter | 30 days | |||||
Average closing price time period before issuance for shares traded over-the-counter | 3 days | |||||
Renewal period | 1 year | |||||
Management agreement, required termination notice period | 180 days | |||||
Number of 12-month periods for measurement of termination fee for investment management agreement | Period | 2 | |||||
Management agreement, required termination notice period, with cause | 30 days | |||||
Management agreement, termination fee payable with cause | $ 0 | $ 0 | ||||
Management agreement, termination for cause terms, continued material breach of provision of agreement, period | 30 days | |||||
Management agreement, termination for cause terms, period following change in control, change in control detrimental to manager | 18 months | |||||
Minimum | ||||||
Related Party Transaction [Line Items] | ||||||
Percentage of incentive compensation manager may elect to receive in common stock | 25% | 25% | ||||
Manager | Fixed-Rate Commercial Real Estate Loans Held For Sale | ||||||
Related Party Transaction [Line Items] | ||||||
Percentage of reimbursement out-of-pocket expenses on principal amount of loan issued | 1% | |||||
Manager pursuant to the Management Agreement | ||||||
Related Party Transaction [Line Items] | ||||||
Incentive compensation multiplier | 20% | 20% | ||||
Incentive compensation | $ 0 | |||||
Incentive compensation multiplier per annum | 7% | |||||
Manager pursuant to the Management Agreement | ACRES Commercial Realty Corp | ||||||
Related Party Transaction [Line Items] | ||||||
Deferred compensation arrangement with individual, cash awards, percentage | 75% | |||||
Deferred compensation arrangement with individual, common stock awards, percentage | 25% | |||||
Forecast | Manager pursuant to the Management Agreement | ||||||
Related Party Transaction [Line Items] | ||||||
Incentive compensation multiplier | 20% | 20% | 20% | 20% | ||
Incentive compensation | $ 0 | |||||
Incentive compensation multiplier per annum | 7% | 7% | 7% | 7% |
RELATED PARTY TRANSACTIONS (Rel
RELATED PARTY TRANSACTIONS (Relationship with ACRES Capital Corp and Certain of its Subsidiaries) (Details) | 3 Months Ended | 12 Months Ended | |||||||||||
Mar. 07, 2023 shares | Jul. 31, 2020 USD ($) Extension | Dec. 31, 2022 USD ($) Loan shares | Sep. 30, 2022 USD ($) | Jun. 30, 2022 USD ($) | Mar. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) shares | Sep. 30, 2021 USD ($) | Jun. 30, 2021 USD ($) | Mar. 31, 2021 USD ($) | Dec. 31, 2022 USD ($) Loan Property Entity shares | Dec. 31, 2021 USD ($) Property shares | Dec. 31, 2020 USD ($) | |
Related Party Transaction [Line Items] | |||||||||||||
Base management fees paid by the Company | $ 7,035,000 | $ 6,089,000 | $ 6,054,000 | ||||||||||
General and administrative | 10,575,000 | 11,602,000 | 14,335,000 | ||||||||||
Interest income | $ 42,514,000 | $ 34,065,000 | $ 27,019,000 | $ 22,676,000 | $ 26,504,000 | $ 23,986,000 | $ 25,793,000 | $ 24,749,000 | 126,274,000 | 101,032,000 | 108,243,000 | ||
Accrued interest receivable | 11,969,000 | 6,112,000 | $ 11,969,000 | 6,112,000 | |||||||||
Vest in installments | 4 years | ||||||||||||
Commercial Real Estate Loans | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Interest income | $ 1,500,000 | 2,000,000 | 2,000,000 | ||||||||||
Loans refinanced by affiliates | $ 38,600,000 | $ 0 | |||||||||||
Percentage of interest acquired in property | 100% | 100% | |||||||||||
Number of properties acquired | Property | 1 | 1 | |||||||||||
Acquisition price of property served as collateral for loan prior to acquisition | 38,600,000 | 14,200,000 | $ 38,600,000 | $ 14,200,000 | |||||||||
Manager Pursuant To Management Agreement | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Incentive compensation | 0 | ||||||||||||
Manager Pursuant To Management Agreement | ACRES Commercial Realty Corp | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Base management fees paid by the Company | 6,700,000 | 6,100,000 | 2,200,000 | ||||||||||
Incentive compensation | 340,000 | 0 | 0 | ||||||||||
Incentive compensation payable in cash | 170,000 | ||||||||||||
Incentive compensation payable in common stock | 170,000 | ||||||||||||
Total indebtedness | 558,000 | 561,000 | 558,000 | 561,000 | |||||||||
General and administrative | 5,100,000 | 4,700,000 | 1,800,000 | ||||||||||
Manager Pursuant To Management Agreement | ACRES Commercial Realty Corp | Other Liabilities | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Total indebtedness | 179,000 | 1,200,000 | $ 179,000 | 1,200,000 | |||||||||
ACRES Capital Corp | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Number of securitization entities | Entity | 2 | ||||||||||||
ACRES Capital Corp | XAN 2020-RSO9 Senior Notes | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Portfolio servicing fees | $ 0 | 0 | 0 | ||||||||||
Special servicing fees | 74,000 | 14,000 | 0 | ||||||||||
ACRES Capital Corp | Interest Income | XAN 2020-RSO9 Senior Notes | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Special servicing fees | 51,000 | 14,000 | |||||||||||
ACRES Capital Corp | ACRES Commercial Realty Corp | Loan Evidenced by Promissory Note | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Related party transaction, loan amount | $ 12,000,000 | ||||||||||||
Related party transaction, interest rate | 3% | ||||||||||||
Related party transaction, monthly amortization payment | $ 25,000 | ||||||||||||
Related party debt, maturity month and year | 2026-07 | ||||||||||||
Number of options to extend | Extension | 2 | ||||||||||||
Related party debt, extension term | 1 year | ||||||||||||
Related party debt, percentage of extension fee | 0.50% | ||||||||||||
Principal balance | 11,300,000 | 11,600,000 | 11,300,000 | 11,600,000 | |||||||||
Accrued interest receivable | $ 0 | $ 0 | 0 | 0 | |||||||||
ACRES Capital Corp | ACRES Commercial Realty Corp | Loan Evidenced by Promissory Note | Other Income | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Interest income | 348,000 | 357,000 | $ 153,000 | ||||||||||
DevCo | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Fees payments | $ 22,000 | $ 0 | |||||||||||
DevCo | Minimum | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Market rate for fees | 1.25% | ||||||||||||
DevCo | Maximum | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Market rate for fees | 1.50% | ||||||||||||
ACRES Share Holdings, LLC | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Number of share authorized for issue (in shares) | shares | 1,100,000 | 1,100,000 | |||||||||||
Common shares granted | shares | 299,999 | 299,999 | 299,999 | 299,999 | |||||||||
Shares of common stock vest percentage | 25% | 25% | |||||||||||
Vest in installments | 4 years | 4 years | |||||||||||
ACRES Share Holdings, LLC | Subsequent Event | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Incentive Compensation Shares Payable | shares | 17,780 | ||||||||||||
ACRES Loan Origination, LLC | Joint Funding Agreements | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Related party transaction, loan amount | $ 97,200,000 | $ 97,200,000 | |||||||||||
Number of loan | Loan | 4 | 4 |
RELATED PARTY TRANSACTIONS (R_2
RELATED PARTY TRANSACTIONS (Relationship with C-III and Certain of its Subsidiaries) (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||
May 31, 2019 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Related Party Transaction [Line Items] | ||||
Base management fees paid by the Company | $ 7,035,000 | $ 6,089,000 | $ 6,054,000 | |
General and administrative | $ 10,575,000 | 11,602,000 | 14,335,000 | |
Prior Manager Pursuant To Management Agreement | ACRES Commercial Realty Corp | ||||
Related Party Transaction [Line Items] | ||||
Base management fees paid by the Company | 3,800,000 | |||
Incentive compensation | 0 | |||
General and administrative | 4,100,000 | |||
C-III Commercial Mortgage LLC | ||||
Related Party Transaction [Line Items] | ||||
Aggregate purchase price of loan acquired | $ 197,600,000 | |||
Deferred origination fee and exit fee excess percentage on outstanding principal | 0.50% | |||
Exit fee earned | $ 361,000 | $ 74,000 |
RELATED PARTY TRANSACTIONS (R_3
RELATED PARTY TRANSACTIONS (Relationship with Resource Real Estate Opportunity REIT) (Details) - Resource Real Estate Opportunity REIT - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Related Party Transaction [Line Items] | |||
Expense in connection with agreement | $ 67,000 | $ 45,000 | |
Payables for rent and professional services | $ 0 | ||
Agreement termination date | Mar. 31, 2021 |
FAIR VALUE OF FINANCIAL INSTR_3
FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 | Oct. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total fair value of real estate owned property | $ 17,600,000 | ||
Recurring Basis | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Financial instruments carried at fair value | $ 0 | $ 0 | |
Mezzanine loan | Expected Future Cash Flows | Measurement Input, Discount Rate | VIE, Not Primary Beneficiary | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value inputs, discount rate | 0.1000 | ||
Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Borrowings outstanding | $ 91,549,000 | ||
Minimum | Level 3 | Loans Pledged as Collateral | Expected Future Cash Flows | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Loans receivable, interest rate, stated percentage | 7.03% | 3.01% | |
Maximum | Level 3 | Loans Pledged as Collateral | Expected Future Cash Flows | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Loans receivable, interest rate, stated percentage | 12.67% | 9% |
FAIR VALUE OF FINANCIAL INSTR_4
FAIR VALUE OF FINANCIAL INSTRUMENTS (Fair Value, by Balance Sheet Grouping) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Loans and receivables | $ 2,038,787 | $ 1,873,746 |
Mortgage payable | 1,884,879 | 1,840,052 |
Quoted Prices in Active Markets for Identical Assets of Liabilities (Level 1) | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Loan receivable - related party | 0 | 0 |
Senior notes in CRE securitizations | 0 | 0 |
Senior secured financing facility | 0 | |
Warehouse financing facilities | 0 | 0 |
Mortgage payable | 0 | |
Junior subordinated notes | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets of Liabilities (Level 1) | CRE Whole Loans | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Loans and receivables | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets of Liabilities (Level 1) | Mezzanine loan | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Loans and receivables | 0 | |
Quoted Prices in Active Markets for Identical Assets of Liabilities (Level 1) | 4.50% Convertible Senior Notes | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
4.50% Convertible Senior Notes | 0 | |
Quoted Prices in Active Markets for Identical Assets of Liabilities (Level 1) | 5.75% Senior Unsecured Notes | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior Unsecured Notes | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Loan receivable - related party | 0 | 0 |
Senior notes in CRE securitizations | 0 | 0 |
Senior secured financing facility | 0 | |
Warehouse financing facilities | 0 | 0 |
Mortgage payable | 0 | |
Junior subordinated notes | 0 | 0 |
Significant Other Observable Inputs (Level 2) | CRE Whole Loans | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Loans and receivables | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Mezzanine loan | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Loans and receivables | 0 | |
Significant Other Observable Inputs (Level 2) | 4.50% Convertible Senior Notes | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
4.50% Convertible Senior Notes | 0 | |
Significant Other Observable Inputs (Level 2) | 5.75% Senior Unsecured Notes | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior Unsecured Notes | 0 | 0 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Loan receivable - related party | 9,672 | 10,407 |
Senior notes in CRE securitizations | 1,179,313 | 1,473,893 |
Senior secured financing facility | 91,549 | |
Warehouse financing facilities | 330,848 | 68,905 |
Mortgage payable | 18,710 | |
Junior subordinated notes | 35,821 | 41,424 |
Significant Unobservable Inputs (Level 3) | CRE Whole Loans | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Loans and receivables | 2,065,504 | 1,889,499 |
Significant Unobservable Inputs (Level 3) | Mezzanine loan | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Loans and receivables | 4,700 | |
Significant Unobservable Inputs (Level 3) | 4.50% Convertible Senior Notes | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
4.50% Convertible Senior Notes | 87,873 | |
Significant Unobservable Inputs (Level 3) | 5.75% Senior Unsecured Notes | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior Unsecured Notes | 138,435 | 148,125 |
Carrying Value | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Loan receivable - related party | 11,275 | 11,575 |
Senior notes in CRE securitizations | 1,233,556 | 1,466,499 |
Senior secured financing facility | 87,890 | |
Warehouse financing facilities | 328,288 | 66,771 |
Mortgage payable | 18,244 | |
Junior subordinated notes | 51,548 | 51,548 |
Carrying Value | CRE Whole Loans | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Loans and receivables | 2,038,787 | 1,869,301 |
Carrying Value | Mezzanine loan | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Loans and receivables | 4,445 | |
Carrying Value | 4.50% Convertible Senior Notes | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
4.50% Convertible Senior Notes | 86,431 | |
Carrying Value | 5.75% Senior Unsecured Notes | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior Unsecured Notes | 147,507 | 146,607 |
Fair Value | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Loan receivable - related party | 9,672 | 10,407 |
Senior notes in CRE securitizations | 1,179,313 | 1,473,893 |
Senior secured financing facility | 91,549 | |
Warehouse financing facilities | 330,848 | 68,905 |
Mortgage payable | 18,710 | |
Junior subordinated notes | 35,821 | 41,424 |
Fair Value | CRE Whole Loans | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Loans and receivables | 2,065,504 | 1,889,499 |
Fair Value | Mezzanine loan | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Loans and receivables | 4,700 | |
Fair Value | 4.50% Convertible Senior Notes | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
4.50% Convertible Senior Notes | 87,873 | |
Fair Value | 5.75% Senior Unsecured Notes | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior Unsecured Notes | $ 138,435 | $ 148,125 |
FAIR VALUE OF FINANCIAL INSTR_5
FAIR VALUE OF FINANCIAL INSTRUMENTS (Fair Value, by Balance Sheet Grouping) (Parenthetical) (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Unamortized issuance costs and discounts | $ 17,846,000 | $ 25,628,000 |
4.50% Convertible Senior Notes | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt instrument, interest rate, stated percentage | 4.50% | |
5.75% Senior Unsecured Notes | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt instrument, interest rate, stated percentage | 5.75% | 5.75% |
12.00% Senior Unsecured Notes | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Unamortized issuance costs and discounts | $ 307,000 |
MARKET RISK AND DERIVATIVE IN_3
MARKET RISK AND DERIVATIVE INSTRUMENTS (Details) - Terminated interest rate swap | 1 Months Ended | 12 Months Ended | ||
Apr. 30, 2020 USD ($) | Dec. 31, 2022 USD ($) Derivative | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Derivatives, Fair Value [Line Items] | ||||
Realized loss on derivatives, net | $ 11,800,000 | |||
Amortization expense reported in interest expense | $ 1,800,000 | $ 1,900,000 | $ 1,300,000 | |
Gain (loss) on derivatives | 6,600,000 | 8,500,000 | ||
Unrealized gains (loss) on derivatives, net | $ 256,000 | 347,000 | ||
Number of hedges terminated | Derivative | 2 | |||
Interest expense to fully amortize | $ 91,000 | $ 91,000 | $ 92,000 |
MARKET RISK AND DERIVATIVE IN_4
MARKET RISK AND DERIVATIVE INSTRUMENTS (Fair Value and Classification of Derivatives) (Details) - Interest rate swaps - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Derivatives, Fair Value [Line Items] | |||
Realized and Unrealized Gain (Loss) | $ (10) | ||
Derivative Instrument, Gain (Loss) Reclassified from AOCI into Income, Effective Portion, Statement of Income or Comprehensive Income [Extensible Enumeration] | Nonoperating Income (Expense) | ||
Designated as Hedging Instrument [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Realized and Unrealized Gain (Loss) | $ (1,733) | $ (1,851) | $ (1,562) |
Derivative Instrument, Gain (Loss) Reclassified from AOCI into Income, Effective Portion, Statement of Income or Comprehensive Income [Extensible Enumeration] | Interest Expense | Interest Expense | Interest Expense |
OFFSETTING OF FINANCIAL LIABILI
OFFSETTING OF FINANCIAL LIABILITIES (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Warehouse financing facilities | ||
Gross Amounts of Recognized Liabilities | $ 328,288 | $ 66,771 |
Gross Amounts Offset on the Consolidated Balance Sheets | 0 | 0 |
Net Amounts of Liabilities Presented on the Consolidated Balance Sheets | 328,288 | 66,771 |
Gross Amounts Not Offset on the Consolidated Balance Sheets- Financial Instruments | 328,288 | 66,771 |
Gross Amounts Not Offset on the Consolidated Balance Sheets- Cash Collateral Pledged | 0 | 0 |
Net Amount | 0 | 0 |
Fair value of securities pledged against term warehouse financing facilities | $ 453,600 | $ 102,000 |
INCOME TAXES (Components of Inc
INCOME TAXES (Components of Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Deferred: | |||
Total | $ 336 | ||
Taxable REIT Subsidiaries ("TRSs") | |||
Current: | |||
Federal | 0 | $ 0 | $ 0 |
State | 13 | 0 | 0 |
Total current | 13 | 0 | 0 |
Deferred: | |||
Federal | 0 | 0 | 0 |
State | 0 | 0 | 0 |
Total deferred | 0 | 0 | 0 |
Total | $ 13 | $ 0 | $ 0 |
INCOME TAXES (Reconciliation Be
INCOME TAXES (Reconciliation Between Federal Statutory Income Tax Rate and Effective Income Tax Rate) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Taxes [Line Items] | |||
Total | $ 336 | ||
Taxable REIT Subsidiaries ("TRSs") | |||
Income Taxes [Line Items] | |||
Statutory tax | (178) | $ (66) | $ (37) |
True-up of prior period tax expense | 0 | 0 | 0 |
State and local taxes, net of federal benefit | 313 | (59) | (3,353) |
Valuation allowance | (64) | 125 | 6,407 |
Discontinued operations adjustment | 0 | 0 | 0 |
Other items | (58) | 0 | (3,017) |
Total | $ 13 | $ 0 | $ 0 |
INCOME TAXES (Components of Def
INCOME TAXES (Components of Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred tax assets related to: | ||
Federal, state and local loss carryforwards | $ 14,018 | $ 14,362 |
Charitable contribution carryforward | 0 | 58 |
Capital loss carryforward | 309 | 327 |
Equity investments | 6,657 | 6,728 |
Interest expense limitation 163(j) | 527 | 202 |
Total deferred tax assets | 21,511 | 21,677 |
Valuation allowance | (21,171) | (21,360) |
Total deferred tax assets, net of valuation allowance | 340 | 317 |
Deferred tax liabilities related to: | ||
Amortization of intangibles | (254) | (260) |
Unrealized gains | (86) | (57) |
Total deferred tax liabilities | (340) | (317) |
Deferred tax assets, net | $ 0 | $ 0 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Income Taxes [Line Items] | |||
Deferred tax assets, operating loss carryforwards, domestic | $ 60,100 | $ 61,100 | |
Deferred tax assets, operating loss carryforwards, state and local | 1,800 | 1,900 | |
Capital loss carryforward | 309 | 327 | |
Operating loss carryforwards, valuation allowance, tax expense impact | 21,200 | 21,400 | |
Other Assets | |||
Income Taxes [Line Items] | |||
Net operating loss carryforwards | $ 14,000 | 14,400 | |
Capital Loss Carryforward | |||
Income Taxes [Line Items] | |||
Gross capital loss carryforward | $ 1,000 | $ 1,000 |
QUARTERLY RESULTS (Details)
QUARTERLY RESULTS (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Interest income | $ 42,514 | $ 34,065 | $ 27,019 | $ 22,676 | $ 26,504 | $ 23,986 | $ 25,793 | $ 24,749 | $ 126,274 | $ 101,032 | $ 108,243 |
Interest expense | 28,733 | 22,939 | 15,745 | 14,907 | 14,615 | 14,534 | 18,702 | 13,724 | 82,324 | 61,575 | 58,008 |
Net interest income | 13,781 | 11,126 | 11,274 | 7,769 | 11,889 | 9,452 | 7,091 | 11,025 | 43,950 | 39,457 | 50,235 |
Net income (loss) | (2,666) | 5,486 | 5,522 | 2,084 | 12,156 | (4,928) | 13,639 | 13,056 | 10,426 | 33,923 | (197,713) |
Net income allocated to preferred shares | (4,856) | (4,855) | (4,856) | (4,855) | (4,854) | (4,877) | (3,568) | (2,588) | (19,422) | (15,887) | (10,350) |
Net loss allocated to non-controlling interest, net of taxes | 91 | 82 | 24 | 197 | 0 | 0 | |||||
NET (LOSS) INCOME ALLOCABLE TO COMMON SHARES | $ (7,431) | $ 713 | $ 690 | $ (2,771) | $ 7,302 | $ (9,805) | $ 10,071 | $ 10,468 | $ (8,799) | $ 18,036 | $ (208,063) |
Net (loss) income per common share - basic | $ (0.87) | $ 0.08 | $ 0.08 | $ (0.30) | $ 0.77 | $ (1.03) | $ 1.04 | $ 1.03 | $ (1) | $ 1.85 | $ (19.33) |
Net (loss) income per common share - diluted | $ (0.87) | $ 0.08 | $ 0.08 | $ (0.30) | $ 0.76 | $ (1.03) | $ 1.04 | $ 1.03 | $ (1) | $ 1.85 | $ (19.33) |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) | 1 Months Ended | ||||
May 31, 2017 USD ($) Loan | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2019 USD ($) | |
Loss Contingencies [Line Items] | |||||
Estimated litigation liability | $ 0 | $ 0 | |||
Commercial Real Estate Loans | Whole Loans | |||||
Loss Contingencies [Line Items] | |||||
Loans held for investment, unfunded loan commitments | 158,200,000 | 157,600,000 | |||
Commercial Real Estate Loans | Preferred equity investments | |||||
Loss Contingencies [Line Items] | |||||
Loans held for investment, unfunded loan commitments | $ 2,500,000 | ||||
Indemnification Agreement | |||||
Loss Contingencies [Line Items] | |||||
Estimated litigation liability | 1,200,000 | 1,300,000 | |||
Indemnification Agreement | Pearlmark Mezzanine Realty Partners IV, L.P. | |||||
Loss Contingencies [Line Items] | |||||
Number of instruments held | Loan | 1 | ||||
Indemnification Agreement | Pearlmark Mezzanine Realty Partners IV, L.P. | Maximum | |||||
Loss Contingencies [Line Items] | |||||
Loss contingency, estimate of possible loss | $ 4,300,000 | $ 536,000 | |||
PCM | |||||
Loss Contingencies [Line Items] | |||||
Outstanding demands to indemnify purchaser of residential mortgage loans | 3,300,000 | 3,300,000 | |||
PCM | Indemnification Agreement | |||||
Loss Contingencies [Line Items] | |||||
Outstanding litigation demands | $ 0 | $ 0 |
Schedule II Valuation and Qua_2
Schedule II Valuation and Qualifying Accounts (Details) - Allowance for Credit Losses - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | $ 8,805 | $ 34,310 | $ 1,460 |
Charge to Expense | 12,295 | (21,262) | 30,815 |
Loans Charged off/Recovered | (2,297) | (4,243) | (997) |
Balance at End of Period | $ 18,803 | $ 8,805 | 34,310 |
Cumulative Effect, Period of Adoption, Adjustment | ASU 2016-13 (CECL Guidance) | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | $ 3,032 |
Schedule III Real Estate and _2
Schedule III Real Estate and Accumulated Depreciation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Real Estate And Accumulated Depreciation [Line Items] | |||
Encumbrances | $ 58,885 | ||
Initial Cost to Company, Land | 38,336 | ||
Initial Cost to Company, Buildings and Improvements | 119,559 | ||
Costs Capitalized Subsequent to Acquisition - Improvements | 865 | ||
Gross Amount of Which Carried at Close of Period, Land | 38,336 | ||
Gross Amount of Which Carried at Close of Period, Buildings and Improvements | 120,424 | ||
Total | 158,760 | $ 75,989 | $ 30,944 |
Accumulated Depreciation | (3,464) | $ (1,204) | $ (112) |
Hotel property, Northeast Region (Held for Sale) | |||
Real Estate And Accumulated Depreciation [Line Items] | |||
Encumbrances | 19,875 | ||
Initial Cost to Company, Buildings and Improvements | 30,944 | ||
Costs Capitalized Subsequent to Acquisition - Improvements | 450 | ||
Gross Amount of Which Carried at Close of Period, Buildings and Improvements | 31,394 | ||
Total | 31,394 | ||
Accumulated Depreciation | $ (1,693) | ||
Year of Construction | 2000 | ||
Date Acquired | Nov. 30, 2020 | ||
Life on Which Depreciation in Latest Statements of Comprehensive Income is Computed | 34 years 9 months 18 days | ||
Office Property, Northeast Region | |||
Real Estate And Accumulated Depreciation [Line Items] | |||
Initial Cost to Company, Land | $ 8,189 | ||
Initial Cost to Company, Buildings and Improvements | 4,706 | ||
Gross Amount of Which Carried at Close of Period, Land | 8,189 | ||
Gross Amount of Which Carried at Close of Period, Buildings and Improvements | 4,706 | ||
Total | 12,895 | ||
Accumulated Depreciation | $ (488) | ||
Year of Construction | 1999 | ||
Date Acquired | Oct. 31, 2021 | ||
Life on Which Depreciation in Latest Statements of Comprehensive Income is Computed | 38 years 7 months 6 days | ||
Unimproved Land, Northeast Region | |||
Real Estate And Accumulated Depreciation [Line Items] | |||
Initial Cost to Company, Land | $ 14,171 | ||
Costs Capitalized Subsequent to Acquisition - Improvements | 32 | ||
Gross Amount of Which Carried at Close of Period, Land | 14,171 | ||
Gross Amount of Which Carried at Close of Period, Buildings and Improvements | 32 | ||
Total | $ 14,203 | ||
Date Acquired | Nov. 30, 2021 | ||
Student Housing Property, Southeast Region | |||
Real Estate And Accumulated Depreciation [Line Items] | |||
Encumbrances | $ 18,710 | ||
Initial Cost to Company, Land | 15,976 | ||
Initial Cost to Company, Buildings and Improvements | 19,114 | ||
Gross Amount of Which Carried at Close of Period, Land | 15,976 | ||
Gross Amount of Which Carried at Close of Period, Buildings and Improvements | 19,114 | ||
Total | 35,090 | ||
Accumulated Depreciation | $ (391) | ||
Year of Construction | 2003 | ||
Date Acquired | Apr. 30, 2022 | ||
Life on Which Depreciation in Latest Statements of Comprehensive Income is Computed | 39 years 1 month 6 days | ||
Hotel property, East North Central Region | |||
Real Estate And Accumulated Depreciation [Line Items] | |||
Encumbrances | $ 20,300 | ||
Initial Cost to Company, Buildings and Improvements | 51,353 | ||
Costs Capitalized Subsequent to Acquisition - Improvements | 347 | ||
Gross Amount of Which Carried at Close of Period, Buildings and Improvements | 51,700 | ||
Total | 51,700 | ||
Accumulated Depreciation | $ (892) | ||
Year of Construction | 1982 | ||
Date Acquired | Apr. 30, 2022 | ||
Life on Which Depreciation in Latest Statements of Comprehensive Income is Computed | 37 years 2 months 12 days | ||
Hotel Property, Northeast Region (Held for Sale) | |||
Real Estate And Accumulated Depreciation [Line Items] | |||
Initial Cost to Company, Buildings and Improvements | $ 13,442 | ||
Costs Capitalized Subsequent to Acquisition - Improvements | 36 | ||
Gross Amount of Which Carried at Close of Period, Buildings and Improvements | 13,478 | ||
Total | $ 13,478 | ||
Year of Construction | 1999 | ||
Date Acquired | Jul. 31, 2022 |
Schedule III Real Estate and _3
Schedule III Real Estate and Accumulated Depreciation - Schedule of Rolls Forward our Gross Investment in Real Estate and the Related Accumulated Depreciation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Investments in Real Estate: | |||
Balance at beginning of period | $ 75,989 | $ 30,944 | |
Additions during period: | |||
Acquisitions through deed-in-lieu of foreclosure | 13,442 | 17,889 | $ 30,944 |
Other acquisitions | 86,444 | 27,065 | |
Improvements, etc. | 731 | 134 | |
Deductions during period: | |||
Other | (17,846) | (43) | |
Balance at close of period | 158,760 | 75,989 | 30,944 |
Accumulated Depreciation: | |||
Balance at beginning of period | (1,204) | (112) | |
Additions during period: | |||
Depreciation expense | (2,260) | (1,092) | (112) |
Balance at close of period | $ (3,464) | $ (1,204) | $ (112) |
Schedule IV Mortgage Loans on_2
Schedule IV Mortgage Loans on Real Estate (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 USD ($) Loan | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2019 USD ($) | |
Mortgage Loans on Real Estate [Line Items] | ||||
CRE whole loans | $ 2,108,276 | |||
Net Carrying Amount of Loans | 2,038,787 | $ 1,873,746 | $ 1,507,682 | $ 1,789,985 |
Allowance for credit losses | (18,803) | |||
Principal Amount of Loans Subject to Delinquent Principal or Interest | 89,636 | |||
CRE Whole loans | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
CRE whole loans | 2,065,504 | |||
Net Carrying Amount of Loans | 2,052,890 | |||
Principal Amount of Loans Subject to Delinquent Principal or Interest | 51,564 | |||
Allowance for credit losses individually determined | 4,700 | |||
Allowance for credit losses general | 14,100 | |||
CRE Whole loans | Rock Hill, SC | Multifamily | Borrower A | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Prior Liens | 0 | |||
CRE whole loans | 68,397 | |||
Net Carrying Amount of Loans | 67,925 | |||
Principal Amount of Loans Subject to Delinquent Principal or Interest | $ 0 | |||
Variable rate basis, floor | 0.10% | |||
Maturity Date | 2025 | |||
CRE Whole loans | Rock Hill, SC | Multifamily | Borrower A | Benchmark Rate (BR) | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Basis spread on variable rate | 3.30% | |||
CRE Whole loans | Various | Multifamily | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Prior Liens | $ 0 | |||
CRE whole loans | 1,483,538 | |||
Net Carrying Amount of Loans | 1,474,330 | |||
Principal Amount of Loans Subject to Delinquent Principal or Interest | $ 0 | |||
CRE Whole loans | Various | Multifamily | Minimum | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Variable rate basis, floor | 0.05% | |||
Maturity Date | 2023 | |||
CRE Whole loans | Various | Multifamily | Maximum | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Variable rate basis, floor | 4.32% | |||
Maturity Date | 2026 | |||
CRE Whole loans | Various | Multifamily | Benchmark Rate (BR) | Minimum | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Basis spread on variable rate | 2.85% | |||
CRE Whole loans | Various | Multifamily | Benchmark Rate (BR) | Maximum | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Basis spread on variable rate | 5% | |||
CRE Whole loans | Various | Hotel | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Prior Liens | $ 0 | |||
CRE whole loans | 179,475 | |||
Net Carrying Amount of Loans | $ 178,502 | |||
CRE Whole loans | Various | Hotel | Minimum | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Variable rate basis, floor | 0.05% | |||
Maturity Date | 2023 | |||
CRE Whole loans | Various | Hotel | Maximum | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Variable rate basis, floor | 3.02% | |||
Maturity Date | 2025 | |||
CRE Whole loans | Various | Hotel | Benchmark Rate (BR) | Minimum | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Basis spread on variable rate | 3.83% | |||
CRE Whole loans | Various | Hotel | Benchmark Rate (BR) | Maximum | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Basis spread on variable rate | 8.50% | |||
CRE Whole loans | Various | Office Building | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Prior Liens | $ 0 | |||
CRE whole loans | 273,357 | |||
Net Carrying Amount of Loans | 271,738 | |||
Principal Amount of Loans Subject to Delinquent Principal or Interest | $ 43,539 | |||
CRE Whole loans | Various | Office Building | Minimum | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Variable rate basis, floor | 0.10% | |||
Maturity Date | 2023 | |||
CRE Whole loans | Various | Office Building | Maximum | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Variable rate basis, floor | 3.13% | |||
Maturity Date | 2026 | |||
CRE Whole loans | Various | Office Building | Benchmark Rate (BR) | Minimum | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Basis spread on variable rate | 3.09% | |||
CRE Whole loans | Various | Office Building | Benchmark Rate (BR) | Maximum | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Basis spread on variable rate | 6% | |||
CRE Whole loans | Various | Self Storage | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Prior Liens | $ 0 | |||
CRE whole loans | 52,712 | |||
Net Carrying Amount of Loans | $ 52,370 | |||
CRE Whole loans | Various | Self Storage | Minimum | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Variable rate basis, floor | 0.10% | |||
Maturity Date | 2024 | |||
CRE Whole loans | Various | Self Storage | Maximum | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Variable rate basis, floor | 1% | |||
Maturity Date | 2025 | |||
CRE Whole loans | Various | Self Storage | Benchmark Rate (BR) | Minimum | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Basis spread on variable rate | 3.85% | |||
CRE Whole loans | Various | Self Storage | Benchmark Rate (BR) | Maximum | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Basis spread on variable rate | 5.50% | |||
CRE Whole loans | Various | Retail Site | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Prior Liens | $ 0 | |||
CRE whole loans | 8,025 | |||
Net Carrying Amount of Loans | 8,025 | |||
Principal Amount of Loans Subject to Delinquent Principal or Interest | $ 8,025 | |||
CRE Whole loans | Various | Retail Site | Benchmark Rate (BR) | Minimum | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Basis spread on variable rate | 4.65% | |||
CRE Whole loans | Various | Retail Site | Benchmark Rate (BR) | Maximum | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Basis spread on variable rate | 2.05% | |||
Mezzanine loans less than 3% of the carrying amount of total loans | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
CRE whole loans | $ 42,772 | |||
Net Carrying Amount of Loans | 4,700 | |||
Principal Amount of Loans Subject to Delinquent Principal or Interest | 38,072 | |||
Mezzanine loan | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
CRE whole loans | 42,772 | |||
Net Carrying Amount of Loans | 4,700 | |||
Principal Amount of Loans Subject to Delinquent Principal or Interest | 38,072 | |||
Office Loan | Various | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
CRE whole loans | $ 36,200 | |||
Quantity | Loan | 3 | |||
One Mezzanine Loan | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
CRE whole loans | $ 38,100 | |||
Net Carrying Amount of Loans | 0 | |||
Allowance for credit losses individually determined | $ 4,700 | |||
Quantity | Loan | 1 | |||
One Mezzanine Loan with Individually Determined Reserve | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
CRE whole loans | $ 4,700 | |||
Interest Only Loans | Multifamily | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Quantity | Loan | 1 |
Schedule IV Mortgage Loans on_3
Schedule IV Mortgage Loans on Real Estate - Reconciliation of Loans and Investments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Movement in Mortgage Loans on Real Estate [Roll Forward] | |||
Balance at beginning of year | $ 1,873,746 | $ 1,507,682 | $ 1,789,985 |
Additions during the period: | |||
New loans originated or acquired | 523,259 | 1,367,157 | 263,081 |
Funding of existing loan commitments | 66,296 | 29,855 | 34,981 |
Amortization of loan origination and extension fees and loan origination costs, net | 8,189 | 8,337 | 5,555 |
Provision for (reversal of) credit losses, net | (12,295) | 21,262 | (30,815) |
Loans charged-off | 2,297 | 4,243 | 997 |
Capitalized interest and loan acquisition costs | 228 | 1,126 | |
Deductions during the period: | |||
Payoff and paydown of loans | (399,550) | (1,019,616) | (493,968) |
Deed in lieu of foreclosure | (14,000) | (19,900) | (37,956) |
Capitalized origination and extension fees | (6,858) | (16,202) | (3,821) |
Loss on discounted payoff | (2,297) | ||
Cost of loans sold | (9,300) | (18,451) | |
Balance at end of year | $ 2,038,787 | $ 1,873,746 | 1,507,682 |
Cumulative Effect, Period of Adoption, Adjustment | |||
Deductions during the period: | |||
Cumulative effect of accounting change for adoption of credit loss guidance | $ (3,032) |