Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Mar. 08, 2021 | Jun. 30, 2020 | |
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, 2020 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Shell Company | false | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Common Stock, Shares Outstanding (in shares) | 9,507,024 | ||
Entity Public Float | $ 80,097,625 | ||
Entity File Number | 1-32733 | ||
Entity Tax Identification Number | 20-2287134 | ||
Entity Address, Address Line One | 865 Merrick Avenue | ||
Entity Address, Address Line Two | Suite 200 S | ||
Entity Address, City or Town | Westbury | ||
Entity Address, State or Province | NY | ||
Entity Address, Postal Zip Code | 11590 | ||
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 | ||
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, 2020. | ||
Common Stock | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Common Stock, $0.001 par value | ||
Trading Symbol | ACR | ||
Security Exchange Name | NYSE | ||
Eight Point Six Two Five Percentage Series C Cumulative Redeemable Preferred Stock | |||
Document Information [Line Items] | |||
Title of 12(b) Security | 8.625% Fixed-to-Floating Series C Cumulative Redeemable Preferred Stock | ||
Trading Symbol | ACRPrC | ||
Security Exchange Name | NYSE |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
ASSETS: | ||
Cash and cash equivalents | $ 29,355 | $ 79,958 |
Restricted cash | 38,386 | 14,476 |
Accrued interest receivable | 7,372 | 8,042 |
CRE loans | 1,541,992 | 1,791,445 |
Less: allowance for credit losses | (34,310) | (1,460) |
CRE loans, net | 1,507,682 | 1,789,985 |
Investment securities available-for-sale | 2,080 | 520,714 |
Principal paydowns receivable | 4,250 | 19,517 |
Loan receivable - related party | 11,875 | |
Investments in unconsolidated entities | 1,548 | 1,548 |
Derivatives, at fair value | 30 | |
Investment in real estate | 33,806 | |
Right of use assets | 5,592 | |
Intangible assets | 3,294 | |
Other assets | 8,783 | 3,290 |
Assets held for sale | 61 | 16,766 |
Total assets | 1,654,084 | 2,454,326 |
LIABILITIES | ||
Accounts payable and other liabilities | 2,068 | 3,408 |
Management fee payable - related party | 442 | 701 |
Accrued interest payable | 6,036 | 4,408 |
Borrowings | 1,304,727 | 1,872,577 |
Lease liabilities | 3,107 | |
Distributions payable | 1,725 | 10,492 |
Derivatives, at fair value | 4,558 | |
Accrued tax liability | 57 | 38 |
Liabilities held for sale | 1,540 | 1,746 |
Total liabilities | 1,319,702 | 1,897,928 |
STOCKHOLDERS’ EQUITY | ||
Common stock, par value $0.001: 125,000,000 shares authorized; 10,162,289 and 10,626,864 shares issued and outstanding (including 11,610 and 140,320 unvested restricted shares) (See Note 1) | 10 | 11 |
Additional paid-in capital | 1,085,941 | 1,085,062 |
Accumulated other comprehensive (loss) income | (9,978) | 1,821 |
Distributions in excess of earnings | (741,596) | (530,501) |
Total stockholders’ equity | 334,382 | 556,398 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | 1,654,084 | 2,454,326 |
8.625% Series C Preferred Stock | ||
STOCKHOLDERS’ EQUITY | ||
Preferred stock, par value $0.001: 10,000,000 shares authorized 8.625% Fixed-to-Floating Series C Cumulative Redeemable Preferred Stock, liquidation preference $25.00 per share; 4,800,000 and 4,800,000 shares issued and outstanding | $ 5 | $ 5 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 125,000,000 | 125,000,000 |
Common stock, shares issued (in shares) | 10,162,289 | 10,626,864 |
Common stock, shares outstanding (in shares) | 10,162,289 | 10,626,864 |
Common stock, shares issued, non-vested restricted shares (in shares) | 11,610 | 140,320 |
Assets of consolidated variable interest entities (VIEs) included in total assets above: | ||
Restricted cash | $ 38,386 | $ 14,476 |
Accrued interest receivable | 7,372 | 8,042 |
CRE loans, pledged as collateral | 1,507,682 | 1,789,985 |
Principal paydowns receivable | 4,250 | 19,517 |
Other assets | 8,783 | 3,290 |
Total assets of consolidated VIEs | 1,654,084 | 2,454,326 |
Accounts payable and other liabilities | 2,068 | 3,408 |
Accrued interest payable | 6,036 | 4,408 |
Borrowings | 1,304,727 | 1,872,577 |
Total liabilities of consolidated VIEs | $ 1,319,702 | $ 1,897,928 |
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 |
VIE, Primary Beneficiary | ||
Assets of consolidated variable interest entities (VIEs) included in total assets above: | ||
Restricted cash | $ 38,353 | $ 532 |
Accrued interest receivable | 5,398 | 3,780 |
CRE loans, pledged as collateral | 1,231,184 | 957,045 |
Principal paydowns receivable | 4,250 | 19,239 |
Other assets | 114 | 25 |
Total assets of consolidated VIEs | 1,279,299 | 980,621 |
Accounts payable and other liabilities | 136 | 175 |
Accrued interest payable | 806 | 897 |
Borrowings | 1,027,929 | 746,439 |
Total liabilities of consolidated VIEs | $ 1,028,871 | $ 747,511 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Interest income: | |||
CRE loans | $ 101,303 | $ 118,060 | $ 103,800 |
Securities | 6,717 | 26,190 | 18,600 |
Other | 223 | 636 | 379 |
Total interest income | 108,243 | 144,886 | 122,779 |
Interest expense | 58,008 | 83,837 | 67,616 |
Net interest income | 50,235 | 61,049 | 55,163 |
Other revenue | $ 76 | $ 101 | $ 120 |
Type of Revenue [Extensible List] | us-gaap:ProductAndServiceOtherMember | us-gaap:ProductAndServiceOtherMember | us-gaap:ProductAndServiceOtherMember |
Total revenues | $ 50,311 | $ 61,150 | $ 55,283 |
OPERATING EXPENSES | |||
Management fees - related party | 6,054 | 8,954 | 11,250 |
Equity compensation - related party | 3,136 | 2,212 | 2,717 |
Real estate operating expense | 298 | ||
General and administrative | 14,335 | 10,392 | 10,666 |
Depreciation and amortization | 49 | 47 | 77 |
Impairment losses | 934 | ||
Provision for (recovery of) credit losses, net | 30,815 | 58 | (1,595) |
Total operating expenses | 54,687 | 21,663 | 24,049 |
Net interest and other revenues less operating expenses | (4,376) | 39,487 | 31,234 |
OTHER INCOME (EXPENSE) | |||
Equity in earnings of unconsolidated entities | 217 | ||
Net realized and unrealized (loss) gain on investment securities available-for-sale and loans and derivatives | (186,610) | 4 | 639 |
Net realized and unrealized gain on investment securities, trading | 53 | ||
Fair value adjustments on financial assets held for sale | (8,768) | (4,682) | (7,176) |
Gain on conversion of real estate | 1,570 | ||
Other income | 471 | 1,408 | 1,996 |
Total net other expense | (193,337) | (3,270) | (4,271) |
(LOSS) INCOME FROM CONTINUING OPERATIONS BEFORE TAXES | (197,713) | 36,217 | 26,963 |
Income tax benefit | 0 | 0 | 343 |
NET (LOSS) INCOME FROM CONTINUING OPERATIONS | (197,713) | 36,217 | 27,306 |
NET (LOSS) INCOME FROM DISCONTINUED OPERATIONS, NET OF TAX | (251) | 121 | |
NET (LOSS) INCOME | (197,713) | 35,966 | 27,427 |
Net income allocated to preferred shares | (10,350) | (10,350) | (12,972) |
Consideration paid in excess of carrying value for preferred shares | 0 | 0 | (7,482) |
NET (LOSS) INCOME ALLOCABLE TO COMMON SHARES | $ (208,063) | $ 25,616 | $ 6,973 |
NET (LOSS) INCOME PER COMMON SHARE - BASIC: | |||
CONTINUING OPERATIONS (in dollars per share) | $ (19.33) | $ 2.47 | $ 0.66 |
DISCONTINUED OPERATIONS (in dollars per share) | (0.02) | 0.01 | |
TOTAL NET (LOSS) INCOME PER COMMON SHARE - BASIC | (19.33) | 2.45 | 0.67 |
NET (LOSS) INCOME PER COMMON SHARE - DILUTED: | |||
CONTINUING OPERATIONS (in dollars per share) | (19.33) | 2.45 | 0.66 |
DISCONTINUED OPERATIONS (in dollars per share) | (0.02) | 0.01 | |
TOTAL NET (LOSS) INCOME PER COMMON SHARE - DILUTED | $ (19.33) | $ 2.43 | $ 0.67 |
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - BASIC (in shares) | 10,763,261 | 10,476,704 | 10,399,440 |
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - DILUTED (in shares) | 10,763,261 | 10,556,785 | 10,461,034 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net (loss) income | $ (197,713) | $ 35,966 | $ 27,427 |
Other comprehensive income (loss): | |||
Reclassification adjustments for realized losses (gains) on investment securities available-for-sale included in net (loss) income | 185,463 | (4) | (135) |
Unrealized (losses) gains on investment securities available-for-sale, net | (191,283) | 9,444 | (4,180) |
Reclassification adjustments associated with net unrealized losses (gains) from interest rate hedges included in net (loss) income | 1,254 | (91) | (22) |
Unrealized losses on derivatives, net | (7,233) | (4,471) | (17) |
Total other comprehensive (loss) income | (11,799) | 4,878 | (4,354) |
Comprehensive (loss) income before allocation to preferred shares | (209,512) | 40,844 | 23,073 |
Net income allocated to preferred shares | (10,350) | (10,350) | (12,972) |
Consideration paid in excess of carrying value for preferred shares | 0 | 0 | (7,482) |
Comprehensive (loss) income allocable to common shares | $ (219,862) | $ 30,494 | $ 2,619 |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Cumulative Effect, Period of Adoption, Adjusted Balance | Common Stock | Common StockCumulative Effect, Period of Adoption, Adjusted Balance | Preferred StockSeries B Preferred Stock | Preferred Stock8.625% Series C Preferred Stock | Preferred Stock8.625% Series C Preferred StockCumulative Effect, Period of Adoption, Adjusted Balance | Additional Paid-in Capital | Additional Paid-in CapitalCumulative Effect, Period of Adoption, Adjusted Balance | Accumulated Other Comprehensive (Loss) Income | Accumulated Other Comprehensive (Loss) IncomeCumulative Effect, Period of Adoption, Adjusted Balance | Distributions In Excess of Earnings | Distributions In Excess of EarningsCumulative Effect, Period of Adoption, Adjustment | Distributions In Excess of EarningsCumulative Effect, Period of Adoption, Adjusted Balance |
Beginning balance at Dec. 31, 2017 | $ 671,476 | $ 10 | $ 5 | $ 5 | $ 1,187,932 | $ 1,297 | $ (517,773) | ||||||||
Beginning balance (in shares) at Dec. 31, 2017 | 10,476,630 | ||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||
Stock-based compensation | 1 | $ 1 | |||||||||||||
Stock-based compensation (in shares) | 79,863 | ||||||||||||||
Amortization of stock-based compensation | 2,717 | 2,717 | |||||||||||||
Purchase and retirement of common stock | (70) | (70) | |||||||||||||
Purchase and retirement of common stock (in shares) | (2,378) | ||||||||||||||
Forfeiture of unvested stock (in shares) | (1,616) | ||||||||||||||
Net income (loss) | 27,427 | 27,427 | |||||||||||||
Distributions on preferred stock | (12,972) | (12,972) | |||||||||||||
Preferred stock redemption | (115,368) | $ (5) | (107,881) | (7,482) | |||||||||||
Securities available-for-sale, fair value adjustment, net | (4,315) | (4,315) | |||||||||||||
Designated derivatives, fair value adjustment | (39) | (39) | |||||||||||||
Distributions on common stock | (15,038) | (15,038) | |||||||||||||
Ending balance at Dec. 31, 2018 | 553,819 | $ 11 | 5 | 1,082,698 | (3,057) | (525,838) | |||||||||
Ending balance (in shares) at Dec. 31, 2018 | 10,552,499 | ||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||
Stock-based compensation | 152 | 152 | |||||||||||||
Stock-based compensation (in shares) | 79,077 | ||||||||||||||
Amortization of stock-based compensation | 2,212 | 2,212 | |||||||||||||
Forfeiture of unvested stock (in shares) | (4,712) | ||||||||||||||
Net income (loss) | 35,966 | 35,966 | |||||||||||||
Distributions on preferred stock | (10,350) | (10,350) | |||||||||||||
Securities available-for-sale, fair value adjustment, net | 9,440 | 9,440 | |||||||||||||
Designated derivatives, fair value adjustment | (4,562) | (4,562) | |||||||||||||
Distributions on common stock | (30,279) | (30,279) | |||||||||||||
Ending 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) | |
Ending balance (in shares) at Dec. 31, 2019 | 10,626,864 | 10,626,864 | 10,626,864 | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||
Equity component of 12% Senior Unsecured Notes | $ 3,108 | 3,108 | |||||||||||||
Stock-based compensation | (1) | (1) | |||||||||||||
Stock-based compensation (in shares) | 80,906 | ||||||||||||||
Amortization of stock-based compensation | 3,136 | 3,136 | |||||||||||||
Purchase and retirement of common stock | (5,365) | $ (1) | (5,364) | ||||||||||||
Purchase and retirement of common stock (in shares) | (535,485) | ||||||||||||||
Forfeiture of unvested stock (in shares) | (9,996) | ||||||||||||||
Net income (loss) | (197,713) | (197,713) | |||||||||||||
Distributions on preferred stock | (10,350) | (10,350) | |||||||||||||
Securities available-for-sale, fair value adjustment, net | (5,820) | (5,820) | |||||||||||||
Designated derivatives, fair value adjustment | (5,979) | (5,979) | |||||||||||||
Ending balance at Dec. 31, 2020 | $ 334,382 | $ 10 | $ 5 | $ 1,085,941 | $ (9,978) | $ (741,596) | |||||||||
Ending balance (in shares) at Dec. 31, 2020 | 10,162,289 | 10,162,289 |
CONSOLIDATED STATEMENT OF CHA_2
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) | Dec. 31, 2020 |
12% Senior Unsecured Notes | |
Debt instrument, interest rate, stated percentage | 12.00% |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
NET (LOSS) INCOME | $ (197,713) | $ 35,966 | $ 27,427 |
Net loss (income) from discontinued operations, net of tax | 251 | (121) | |
Net (loss) income from continuing operations | (197,713) | 36,217 | 27,306 |
Adjustments to reconcile net (loss) income from continuing operations to net cash provided by continuing operating activities: | |||
Provision for (recovery of) credit losses, net | 30,815 | 58 | (1,595) |
Depreciation, amortization and accretion | 6,524 | 3,399 | 2,908 |
Amortization of stock-based compensation | 3,136 | 2,212 | 2,717 |
Deferred income tax benefit | 0 | 0 | (27) |
Sale of and principal payments on syndicated corporate loans held for sale | 43 | 102 | |
Sale of and principal payments on investment securities, trading | 241 | ||
Net realized and unrealized gain on investment securities, trading | (53) | ||
Net realized and unrealized loss (gain) on investment securities available-for-sale and loans and derivatives | 186,545 | (4) | (639) |
Net gain on conversion to real estate | (1,794) | ||
Fair value and other adjustments on asset held for sale | 8,768 | 4,682 | 7,176 |
Impairment losses | 934 | ||
Equity in earnings of unconsolidated entities | (217) | ||
Return on investment from investments in unconsolidated entities | 411 | ||
Changes in operating assets and liabilities: | |||
(Increase) decrease in accrued interest receivable, net of purchased interest | (322) | 353 | (1,196) |
Increase in interest receivable - related party | (39) | ||
Decrease in management fee payable | (259) | (85) | (97) |
(Decrease) increase in accounts payable and other liabilities | (559) | (4,160) | 52 |
Increase (decrease) in accrued interest payable | 1,536 | 185 | (163) |
(Increase) decrease in other assets | (4,828) | 492 | 9,843 |
Net cash provided by continuing operating activities | 31,810 | 43,392 | 47,703 |
Net cash (used in) provided by discontinued operating activities | (59) | 505 | |
Net cash provided by operating activities | 31,810 | 43,333 | 48,208 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Origination and purchase of loans | (298,094) | (918,917) | (826,155) |
Principal payments received on loans and leases | 509,236 | 695,409 | 631,597 |
Proceeds from sale of loans or assets previously held for sale | 27,745 | 16,709 | |
Purchase of investment securities available-for-sale | (24,610) | (146,627) | (242,557) |
Principal payments on investment securities available-for-sale | 4,733 | 56,295 | 21,055 |
Proceeds from sale of investment securities available-for-sale | 37,764 | 638 | 12,081 |
Return of capital from unconsolidated entities | 10,374 | ||
Settlement of derivative instruments | (46) | ||
Purchase of furniture and fixtures | (5) | ||
Investment in loan - related party | (12,000) | ||
Principal payments received on loan - related party | 125 | ||
Net cash provided by (used in) continuing investing activities | 244,894 | (313,202) | (376,942) |
Net cash provided by discontinued investing activities | 135 | 29,712 | |
Net cash provided by (used in) investing activities | 244,894 | (313,067) | (347,230) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Retirement of common stock | (69) | ||
Repurchase of common stock | (5,365) | ||
Repurchase of preferred stock | (165,340) | ||
Proceeds from borrowings: | |||
Senior secured financing facility | 128,495 | ||
Senior unsecured notes | 50,000 | ||
Warehouse financing facilities and repurchase agreements | 288,555 | 913,865 | 939,902 |
Securitizations | 639,074 | 575,811 | 397,452 |
Payments on borrowings: | |||
Senior secured financing facility | (95,135) | ||
Warehouse financing facilities and repurchase agreements | (827,684) | (847,334) | (563,415) |
Securitizations | (413,023) | (329,717) | (311,701) |
Convertible senior notes | (21,182) | (70,453) | |
Payment of debt issuance costs | (16,253) | (6,529) | (10,531) |
Settlement of derivative instruments | (11,762) | 643 | |
Distribution paid on subordinated note | (31) | ||
Distributions paid on preferred stock | (10,350) | (10,350) | (15,257) |
Distributions paid on common stock | (8,767) | (27,052) | (11,068) |
Net cash (used in) provided by continuing financing activities | (303,397) | 268,694 | 190,132 |
Net cash (used in) provided by financing activities | (303,397) | 268,694 | 190,132 |
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH | (26,693) | (1,040) | (108,890) |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT BEGINNING OF PERIOD | 94,434 | 95,474 | 204,364 |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD | 67,741 | 94,434 | 95,474 |
SUPPLEMENTAL DISCLOSURE: | |||
Interest expense paid in cash | $ 44,677 | $ 73,963 | $ 57,548 |
ORGANIZATION
ORGANIZATION | 12 Months Ended |
Dec. 31, 2020 | |
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”)(formerly known as Exantas Capital Corp.) is a real estate investment trust (“REIT”) that is primarily focused on originating, holding and managing commercial real estate (“CRE”) mortgage loans and other commercial real estate-related debt investments. 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”). In conjunction with the ACRES acquisition, the Company secured new capital commitments for up to $375.0 million and entered into a promissory note (the “Promissory Note”) as lender with ACRES Capital Corp., as disclosed in Note 11 and Note 17, respectively. 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”), formerly RCC Real Estate, Inc., a wholly-owned subsidiary that holds CRE loans, CRE-related securities and retained investment securities 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 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2020 | |
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 the 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 expected credit losses and the disclosure of contingent liabilities. In December 2019, a novel strain of coronavirus (“COVID-19”) was identified. The resulting global proliferation of the virus led the World Health Organization to designate COVID-19 as a pandemic and numerous countries, including the U.S., to declare national emergencies. Many countries have responded to the outbreak by instituting quarantines and restrictions on travel, which have resulted in the closure or remote operation of non-essential businesses. Such actions have produced material and previously unforeseeable shocks to global markets, disruptions to global supply chains and adversity to many industries and economies as whole. While certain countries around the world have eased restrictions and financial markets have stabilized to some degree, the pandemic continues to plague the overall U.S. economy and cause uncertainty surrounding the ultimate impact on the global economy generally, and the CRE business in particular, that make estimates and assumptions as of December 31, 2020 inherently less certain than they would be absent the current and potential impacts of COVID-19. The Company believes the estimates and assumptions underlying the consolidated financial statements are reasonable and supportable based on the information available at December 31, 2020. Actual results may ultimately differ from those estimates. 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, 2020 and 2019, approximately $27.3 million and $77.6 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 primarily for the Company’s CRE debt securitizations and derivative instruments as well as cash held in 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, 2020 2019 Cash and cash equivalents $ 29,355 $ 79,958 Restricted cash 38,386 14,476 Total cash, cash equivalents and restricted cash shown on the Company’s consolidated statements of cash flows $ 67,741 $ 94,434 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 may be accounted for under the equity method or the cost method. Under the equity method, capital contributions, distributions, profits and losses of the entities are allocated in accordance with the terms of the entities’ operating agreements. Such allocations may differ from the stated percentage interests, if any, as a result of preferred returns and allocation formulas as described in the entities’ operating agreements. For non-controlling investments in unconsolidated entities qualifying for equity method treatment with substantive profit-sharing arrangements, the hypothetical liquidation at book value (“HLBV”) method may be used for recognizing earnings. Under the HLBV method, earnings are calculated and recognized based on the change in how the unconsolidated entity would allocate and distribute its cash if it were to liquidate the carrying value of its assets and liabilities on the beginning and end dates of the earnings period; excluding contributions made or distributions received. The Company may account for an investment that does not qualify for equity method accounting using 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. Investment Securities The Company classifies its investment securities portfolio as trading or available-for-sale. The Company, from time to time, may sell any of its investments due to changes in market conditions or in accordance with its investment strategy. The Company reports its investment securities available-for-sale and historically has reported its investment securities, trading at fair value. To determine fair value, the Company uses an independent third-party valuation firm utilizing data available in the market as well as appropriate prepayment, default and recovery rates. The Company evaluates the reasonableness of the valuation it receives by using a dealer quote, bid, or internal model. If there is a material difference between the value indicated by the third-party valuation firm and the dealer quote, bid or internal model, the Company will evaluate the difference, which could result in an updated valuation from the third-party or a revised dealer quote. 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. Historically, any changes in fair value of the Company’s investment securities, trading were recorded on the Company’s consolidated statements of operations as net realized and unrealized gain (loss) on investment securities, trading. Any changes in fair value of the Company’s investment securities available-for-sale are recorded on the Company’s consolidated balance sheets as a component of accumulated other comprehensive income (loss) in stockholders’ equity. On a quarterly basis, the Company evaluates available-for-sale securities with fair values below the ir amortized cost bases to determine the estimate of expected credit losses. Evidence of the need for an allowance for credit losses will be based on consideration of several factors, including (i) if the Company intends to sell the security, (ii) if it is more likely than not that the Company will be required to sell the security before recovering its cost, or (iii) whether a portion of the unrealized loss is a result of credit losses or other market factors. A credit loss will have occurred if the present value of cash flows expected to be collected from the debt security is less than the amortized cost basis. If the Company intends to sell a debt security with a fair value below the amortized cost basis or it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis less any current period credit loss, a write-off is recognized in earnings through a charge to the amortized cost of the security and equal to the entire difference between fair value and amortized cost. If a credit loss exists, but the Company does not intend nor is it more likely than not that it will be required to sell before recovery, the loss will be separated into (i) the estimated amount relating to the credit loss and (ii) the amount relating to all other factors. Only the estimated credit loss amount is recognized in earnings through an increase to the allowance for credit losses, with the remainder of the loss recognized in other comprehensive income. If the Company uses a discounted cash flow approach to estimate expected credit losses, changes in the present value attributable to the passage of time are recorded in the provision for credit losses. Estimating cash flows and determining whether there are credit losses require management to exercise judgment and to make significant assumptions, including, but not limited to, assumptions regarding estimated prepayments, loss assumptions and assumptions regarding changes in interest rates. As a result, actual losses, and the timing of income recognized on these securities, could differ from reported amounts. Investment security transactions are recorded on the trade date. Realized gains and losses on investment securities are determined on the specific identification method. Investment Security Interest Income Recognition Interest income on the Company’s mortgage-backed securities (“MBS”) and other asset-backed securities (“ABS”) is accrued using the effective yield method based on the actual coupon rate and the outstanding principal amount of the underlying mortgages or other assets. Premiums and discounts are amortized or accreted into interest income over the expected lives of the securities also using the effective yield method, adjusted for the effects of estimated prepayments. For an investment purchased at par, the effective yield is the contractual interest rate on the investment. If the investment is purchased at a discount or at a premium, the effective yield is computed based on the contractual interest rate increased for the accretion of a purchase discount or decreased for the amortization of a purchase premium. The effective yield method requires the Company to make estimates of future prepayment rates for its investments that can be contractually prepaid before their contractual maturity date so that the purchase discount can be accreted, or the purchase premium can be amortized, over the estimated remaining life of the investment. The prepayment estimates that the Company uses directly impact the estimated remaining lives of its investments. Actual prepayment estimates are reviewed at each quarter end or more frequently if the Company becomes aware of any material information that would lead it to believe that an adjustment is necessary. For MBS and other ABS that are not of high credit quality or that can be prepaid in such a way that the Company would not recover substantially all of its initial investment, changes in the original or most recent cash flow projections may result in a prospective change in interest income recognized. For MBS and other ABS that are of high credit quality, changes in the original or most recent cash flow projections may result in an immediate cumulative adjustment in interest income recognized. The Company records interest receivable on its available-for-sale debt securities 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 balance is deemed uncollectible, then the Company writes off the balance of the interest receivable through a reversal of interest income. 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 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 balance is deemed uncollectible, then the Company writes off the balance of the interest receivable through a reversal of interest income. Preferred Equity Investment Preferred equity investments, which are subordinate to any loans but senior to common equity, depending on the investment’s characteristics, may be accounted for as real estate, joint ventures or as mortgage loans. The Company’s preferred equity investments are accounted for as CRE loans held for investment, are carried at cost, net of unamortized loan fees and origination costs, and are included within CRE loans on the Company’s consolidated balance sheets. The Company accretes or amortizes any discounts or premiums over the life of the related loan utilizing the effective interest method. Interest and fees are recognized as income subject to recoverability, which is 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 judgements, including: (i) the selection of a reasonable and supportable forecast period, (ii) the selection 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 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 less risk to 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. The Company considered a loan to be impaired if at least one of two conditions exists. The first condition was if, based on the Company’s evaluation as part of the loan risk rating process, management believed that a loss event had occurred that made it probable that the Company would be unable to collect all amounts due according to the contractual terms of the loan agreement. The second condition was that the loan was deemed to be a TDR. These TDRs may not have had an associated specific credit loss allowance if the principal and interest amount was considered recoverable based on market conditions, appraisals of the underlying collateral, expected collateral performance and/or guarantees made by the borrowers. When a loan was impaired under either of these two conditions, the allowance for credit losses was increased by the amount of the excess of the amortized cost basis of the loan over its fair value. When a loan, or a portion thereof, was considered uncollectible and pursuit of collection was not warranted, the Company recorded a charge-off or write-down of the loan against the allowance for credit losses. Investment in Real Estate 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. Investments in real estate are carried net of accumulated depreciation. The Company depreciates real property and furniture, fixtures, and equipment using the straight-line method over the estimated useful lives of the assets. The Company amortizes any acquired intangible assets, including but not limited to franchise agreement and customer list 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. 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 years Site Improvements 10 years FF&E 5 years Right of use assets 66.5 years Intangible assets 3 years to 16.5 years Lease liabilities 66.5 years 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. Legacy CRE loans included as assets held for sale were measured at the lower of cost or fair value on the date the legacy CRE loans were transferred to assets held for sale. Any specific loan loss reserves for legacy CRE loans transferred to assets held for sale were measured and charged off on the date of transfer, establishing a new cost basis for the loans. 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 asset |
VARIABLE INTEREST ENTITIES
VARIABLE INTEREST ENTITIES | 12 Months Ended |
Dec. 31, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
VARIABLE INTEREST ENTITIES | NOTE 3 - VARIABLE INTEREST ENTITIES The Company has evaluated its securities, 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 six and five VIEs at December 31, 2020 and 2019, respectively (for each period, collectively, the “Consolidated VIEs”). The Consolidated VIEs are CRE securitizations, CDOs and CLOs that were formed on behalf of the Company to invest in real estate-related securities, commercial mortgage-backed securities ( “ CMBS ” ), syndicated corpo rate loans, corporate bonds and ABS and 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 . 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 11. 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, 2020, 2019 and 2018, 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, 2020 (in thousands): CRE Securitizations Other Total ASSETS Restricted cash $ 37,846 $ 507 $ 38,353 Accrued interest receivable 5,398 — 5,398 CRE loans, pledged as collateral (1) 1,231,184 — 1,231,184 Principal paydowns receivable 4,250 — 4,250 Other assets 114 — 114 Total assets (2) $ 1,278,792 $ 507 $ 1,279,299 LIABILITIES Accounts payable and other liabilities $ 136 $ — $ 136 Accrued interest payable 806 — 806 Borrowings 1,027,929 — 1,027,929 Total liabilities $ 1,028,871 $ — $ 1,028,871 (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, 2020. 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, 2020. 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 or not 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. Wells Fargo Commercial Mortgage Trust 2017-C40 In October 2017, the Company purchased 95% of the Class E, F, G, H and J certificates of Wells Fargo Commercial Mortgage Trust 2017-C40 (“C40”), a B-piece investment in a Wells Fargo Commercial Mortgage Securities, Inc., private-label, $705.4 million securitization. C-III Asset Management LLC (“C3AM”), a former related party, is the special servicer of C40. As of December 31, 2020, the Company continued to hold investments in the H and J certificates of C40. The Company determined that although its investment in C40 represented a variable interest, its investment did not provide the Company with a controlling financial interest. The Company accounts for its various investments in C40 as investment securities available-for-sale on its consolidated financial statements. Prospect Hackensack JV LLC In March 2018, the Company invested $19.2 million in the preferred equity of Prospect Hackensack JV LLC (“Prospect Hackensack”), a joint venture between the Company and an unrelated third party (“Managing Member”). Prospect Hackensack was formed for the purpose of acquiring and operating a multifamily CRE property. The Managing Member manages the daily operations of the property. The Company determined that although its investment in Prospect Hackensack represented a variable interest, its investment did not provide the Company with a controlling financial interest. The Company accounts for its investment in Prospect Hackensack’s preferred equity as a CRE loan on its consolidated financial statements. WC Newhall MM, LLC In June 2019, the Company invested $5.5 million in the preferred equity of WC Newhall MM, LLC (“Santa Clarita”), a joint venture between the Company and two unrelated third parties (“Sponsor Members”). Santa Clarita was formed for the purpose of refinancing a self-storage CRE property. The Sponsor Members manage the daily operations of the property. The Company determined that although its investment in Santa Clarita represented a variable interest, its investment did not provide the Company with a controlling financial interest. The Company accounts for its investment in Santa Clarita’s preferred equity as a CRE loan on its consolidated financial statements. The following table shows the classification, carrying value and maximum exposure to loss with respect to the Company’s unconsolidated VIEs at December 31, 2020 (in thousands): Unsecured Junior Subordinated Debentures C40 Prospect Hackensack Santa Clarita Total Maximum Exposure to Loss ASSETS Accrued interest receivable $ 6 $ 56 $ — $ 43 $ 105 $ — CRE loans (1) — — 21,262 6,452 27,714 $ 27,714 Investment securities available-for-sale (2) — 2,080 — — 2,080 $ 2,080 Investments in unconsolidated entities 1,548 — — — 1,548 $ 1,548 Total assets 1,554 2,136 21,262 6,495 31,447 LIABILITIES Accrued interest payable 188 — — — 188 N/A Borrowings 51,548 — — — 51,548 N/A Total liabilities 51,736 — — — 51,736 N/A Net (liability) asset $ (50,182 ) $ 2,136 $ 21,262 $ 6,495 $ (20,289 ) N/A (1) The carrying values exclude the allowance for credit losses. (2) The Company’s investment in C40 is carried at fair value and its maximum exposure to loss is the amortized cost of the investment. At December 31, 2020, 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, 2020 | |
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, 2020 2019 2018 Non-cash continuing 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 $ — $ — Non-cash continuing investing activities include the following: Proceeds from the relinquishment of investment securities available-for-sale $ 369,873 $ — $ — Proceeds from the receipt of deed in lieu of foreclosure on loan $ 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 continuing financing activities include the following: Repayment of repurchase agreements from the relinquishment of investment securities available-for-sale $ (369,873 ) $ — $ — Distributions on common stock accrued but not paid $ — $ 8,767 $ 5,540 Distributions on preferred stock accrued but not paid $ 1,725 $ 1,725 $ 1,725 |
RESTRICTED CASH
RESTRICTED CASH | 12 Months Ended |
Dec. 31, 2020 | |
Cash And Cash Equivalents [Abstract] | |
RESTRICTED CASH | NOTE 5 - RESTRICTED CASH The following table summarizes the Company’s restricted cash (in thousands): December 31, 2020 2019 Restricted cash: Cash held by consolidated CRE securitizations, CDOs and CLOs $ 38,353 $ 532 Restricted cash pledged with minimum reserve balance requirements 33 22 Margin posted on interest rate swaps and warehouse financing facilities — 13,922 Total $ 38,386 $ 14,476 |
LOANS
LOANS | 12 Months Ended |
Dec. 31, 2020 | |
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 (9) Maturity Dates (2)(3)(4) At December 31, 2020: CRE loans held for investment: Whole loans (5)(6) 95 $ 1,515,722 $ (6,144 ) $ 1,509,578 $ (32,283 ) $ 1,477,295 1M LIBOR plus 2.70% to 1M LIBOR plus 9.00% January 2021 to January 2024 Mezzanine loan (5) 1 4,700 — 4,700 (301 ) 4,399 10.00% June 2028 Preferred equity investments (6)(7)(8) 2 27,650 64 27,714 (1,726 ) 25,988 11.00% to 11.50% June 2022 to April 2023 Total CRE loans held for investment $ 1,548,072 $ (6,080 ) $ 1,541,992 $ (34,310 ) $ 1,507,682 At December 31, 2019: CRE loans held for investment: Whole loans (5)(6) 112 $ 1,768,322 $ (7,725 ) $ 1,760,597 $ (1,460 ) $ 1,759,137 1M LIBOR plus 2.70% to 1M LIBOR plus 6.25% January 2020 to October 2023 Mezzanine loan 1 4,700 — 4,700 — 4,700 10.00% June 2028 Preferred equity investments (6)(7)(8) 2 26,237 (89 ) 26,148 — 26,148 11.00% to 11.50% June 2022 to April 2023 Total CRE loans held for investment $ 1,799,259 $ (7,814 ) $ 1,791,445 $ (1,460 ) $ 1,789,985 (1) Amounts include unamortized loan origination fees of $5.7 million and $9.1 million and deferred amendment fees of $495,000 and $72,000 at December 31, 2020 and 2019, respectively. Additionally, the amounts include unamortized loan acquisition costs of $118,000 and $1.3 million at December 31, 2020 and 2019, respectively. (2) Maturity dates exclude contractual extension options, subject to the satisfaction of certain terms, that may be available to the borrowers. (3) Maturity (4) Maturity dates (5) Substantially all loans are pledged as collateral under various borrowings at December 31, 2020 and 2019. (6) Whole loans (7) The interest rate (8) Beginning in April 2023, the Company has the right to unilaterally force the sale of the Prospect Hackensack’s underlying property. Beginning in June 2022, the Company has the right to unilaterally force the sale of Santa Clarita’s underlying property. (9) The Company’s floating-rate CRE loan portfolio of $1.5 billion had a weighted-average one-month LIBOR floor of 1.88% at December 31, 2020 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 2021 2022 2023 and Thereafter Total At December 31, 2020: Whole loans (1) $ 599,053 $ 540,639 $ 330,143 $ 1,469,835 Mezzanine loan — — 4,700 4,700 Preferred equity investment — 6,452 21,262 27,714 Total CRE loans (2) $ 599,053 $ 547,091 $ 356,105 $ 1,502,249 Description 2020 2021 2022 and Thereafter Total At December 31, 2019: Whole loans (1) $ 319,868 $ 737,478 $ 691,747 $ 1,749,093 Mezzanine loan — — 4,700 4,700 Preferred equity investment — — 26,148 26,148 Total CRE loans (2) $ 319,868 $ 737,478 $ 722,595 $ 1,779,941 (1) Maturity dates exclude three whole loans, with amortized costs of $39.7 million, and one whole loan, with an amortized cost of $11.5 million, in maturity default at December 31, 2020 and 2019, respectively. (2) At December 31, 2020, the amortized costs of the CRE whole loans, summarized by contractual maturity assuming full exercise of the extension options, were $112.4 million, $125.1 million and $1.3 billion in 2021, 2022 and 2023 and thereafter, respectively. At December 31, 2019, the amortized costs of the CRE whole loans, summarized by contractual maturity assuming full exercise of the extension options, were $105.5 million, $68.0 million and $1.6 billion in 2020, 2021 and 2022 and thereafter, respectively. At December 31, 2020, approximately 21.4%, 17.9% and 16.1% of the Company’s CRE loan portfolio was concentrated in the Mountain, Southwest and Southeast regions, respectively, based on carrying value, as defined by the National Council of Real Estate Investment Fiduciaries. At December 31, 2019, approximately 19.5%, 19.4% and 17.6% of the Company’s CRE loan portfolio was concentrated in the Mountain, Southwest and Southeast regions, respectively, based on carrying value. 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, 2020, the Company had $4.3 million of loan principal paydowns receivable, all of which was received in cash by the Company during January 2021. At December 31, 2019, the Company had $19.5 million of loan principal paydowns receivable, all of which was received by the Company during January 2020. |
FINANCING RECEIVABLES
FINANCING RECEIVABLES | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 and 2019 and the allowance for credit losses and recorded investments in loans at December 31, 2020 and 2019 (in thousands, except amount in the footnotes): Years Ended December 31, 2020 2019 CRE Loans CRE Loans (1) Allowance for credit losses: Allowance for credit losses at beginning of year $ 1,460 $ 1,401 Adoption of the new CECL guidance 3,032 — Provision for credit losses (2) 30,815 59 Charge off of realized loss on sale of loan (3) (997 ) — Allowance for credit losses at end of year $ 34,310 $ 1,460 (1) The Company’s mezzanine loan and preferred equity investments were evaluated individually for impairment during the year ended December 31, 2019 and were determined to have no evidence of impairment. (2) Excludes the recovery of credit losses on one bank loan with no amortized cost or carrying value at December 31, 2020 and 2019 that received a payment of approximately $1,000 during the year ended December 31, 2019. (3) The allowance for credit losses included a realized loss of $997,000 that was charged to the allowance related to one CRE loan sale that occurred during the year ended December 31, 2020. There was no such charge off as of December 31, 2019. During the year ended December 31, 2020, expected losses in the portfolio were negatively impacted by higher than expected unemployment and increased volatility in CRE asset pricing and liquidity During the year ended December 31, 2020, the Company individually evaluated a hotel loan in the Northeast region with a $37.9 million principal balance for which foreclosure was determined to be probable. In November 2020, as a result of discussions with the borrower, the Company received the deed in lieu of foreclosure on the property. In conjunction with receiving the deed in lieu of foreclosure, the Company obtained an updated appraisal that indicated an as-is appraised value of $39.8 million (See Note 8) and consequently reversed the $8.0 million CECL allowance that was previously established for the loan that was based on the estimated sales value of the collateral, less estimated costs to sell. Also at December 31, 2020, the Company individually evaluated a loan on an office property in the North East 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 . T $1.9 million and $0, respectively, calculated as the difference between the as-is appraised values and the loans’ amortized costs. 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 • • 2 • • 3 • • 4 • • 5 • may be • The property has a material vacancy rate • 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 and preferred equity investments 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 footnotes): Rating 1 Rating 2 Rating 3 Rating 4 Rating 5 Total (1) At December 31, 2020: Whole loans $ — $ 611,838 $ 599,208 $ 262,398 $ 36,134 $ 1,509,578 Mezzanine loan — — 4,700 — — 4,700 Preferred equity investments — — 6,452 21,262 — 27,714 Total $ — $ 611,838 $ 610,360 $ 283,660 $ 36,134 $ 1,541,992 At December 31, 2019: Whole loans $ — $ 1,660,274 $ 96,475 $ 3,848 $ — $ 1,760,597 Mezzanine loan (2) — 4,700 — — — 4,700 Preferred equity investments (2) — 26,148 — — — 26,148 Total $ — $ 1,691,122 $ 96,475 $ 3,848 $ — $ 1,791,445 (1) The total amortized cost of CRE loans excluded accrued interest receivable of $7.3 million and $6.7 million at December 31, 2020 and 2019, respectively. (2) The Company’s mezzanine loan and preferred equity investments were evaluated individually for impairment at December 31, 2019. Credit risk profiles of CRE loans by origination year at amortized cost were as follows (in thousands, except amounts in footnotes): 2020 2019 2018 2017 2016 Prior Total (1) At December 31, 2020: Whole loans, floating-rate: (2) Rating 2 $ 221,364 $ 279,077 $ 111,397 $ — $ — $ — $ 611,838 Rating 3 43,579 246,073 246,944 45,142 — 17,470 599,208 Rating 4 — 77,495 129,536 46,220 — 9,147 262,398 Rating 5 — 13,938 — 19,900 — 2,296 36,134 Total whole loans, floating-rate 264,943 616,583 487,877 111,262 — 28,913 1,509,578 Mezzanine loan (rating 3) — — 4,700 — — — 4,700 Preferred equity investments: Rating 3 — 6,452 — — — — 6,452 Rating 4 — — 21,262 — — — 21,262 Total preferred equity investments — 6,452 21,262 — — — 27,714 Total $ 264,943 $ 623,035 $ 513,839 $ 111,262 $ — $ 28,913 $ 1,541,992 2019 2018 2017 2016 2015 Prior Total (1) At December 31, 2019: Whole loans, floating-rate: (2) Rating 2 $ 669,947 $ 776,078 $ 202,577 $ — $ — $ 11,672 $ 1,660,274 Rating 3 21,593 — 37,008 — 17,471 20,403 96,475 Rating 4 — — — — 3,848 — 3,848 Total whole loans, floating-rate 691,540 776,078 239,585 — 21,319 32,075 1,760,597 Mezzanine loan (rating 2) — 4,700 — — — — 4,700 Preferred equity investments (rating 2) 5,741 20,407 — — — — 26,148 Total $ 697,281 $ 801,185 $ 239,585 $ — $ 21,319 $ 32,075 $ 1,791,445 (1) The total amortized cost of CRE loans excluded accrued interest receivable of $7.3 million and $6.7 million at December 31, 2020 and 2019, respectively. (2) Acquired CRE whole loans are grouped within each loan’s year of issuance. 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 Days (1) Total Past Due Current (2) Total Loans Receivable (3) Total Loans > 90 Days and Accruing (1) At December 31, 2020: Whole loans $ — $ — $ 11,443 $ 11,443 $ 1,498,135 $ 1,509,578 $ 11,443 Mezzanine loan — — — — 4,700 4,700 — Preferred equity investments — — — — 27,714 27,714 — Total $ — $ — $ 11,443 $ 11,443 $ 1,530,549 $ 1,541,992 $ 11,443 At December 31, 2019: Whole loans $ — $ — $ 11,503 $ 11,503 $ 1,749,094 $ 1,760,597 $ 11,503 Mezzanine loan — — — — 4,700 4,700 — Preferred equity investments — — — — 26,148 26,148 — Total $ — $ — $ 11,503 $ 11,503 $ 1,779,942 $ 1,791,445 $ 11,503 (1) Includes one whole loan, with an amortized cost of $11.4 million and $11.5 million, that was in maturity default at December 31, 2020 and 2019, respectively. The loan is performing with respect to debt service at December 31, 2020 and 2019. During the years ended December 31, 2020, 2019 and 2018, the Company recognized interest income of $670,000, $747,000 and $621,000, respectively, on this whole loan. (2) Includes two whole loans that entered maturity default in December 2020, with total amortized costs of $28.3 million at December 31, 2020. (3) The total amortized cost of CRE loans excluded accrued interest receivable of $7.3 million and $6.7 million at December 31, 2020 and 2019, respectively. At December 31, 2020 and 2019, the Company had three and one CRE loans, respectively, in maturity default with total amortized costs of $39.7 million and $11.5 million, respectively. In the fourth quarter of 2020, the sponsor of the Company’s $6.5 million preferred equity investment in a self-storage CRE property located in Southern California did not make its October and November senior loan debt service payments constituting an event of default under the related senior loan documents. As of December 31, 2020, the Company was notified that the senior loan debt service was brought current. Troubled-Debt Restructurings The following table summarizes TDRs during the year ended December 31, 2020 (dollars in thousands): Year Ended December 31, 2020 Number of Loans Pre- Modification Outstanding Recorded Balance Post- Modification Outstanding Recorded Balance CRE whole loans (1) 2 $ 56,882 $ 56,882 (1) In November 2020, the Company received the deed in lieu of foreclosure on one loan that underwent a troubled debt restructuring in the third quarter 2020 (See Note 8). During the year ended December 31, 2020, the Company entered into 18 extension agreements that had a weighted average period of 10 months and 13 forbearance agreements that had a weighted average period of five months. As of December 31, 2020, 25 borrowers received payment timing relief in connection with these agreements. Three borrowers with formerly forborne interest are now current and two borrowers continue to perform in accordance with their forbearance agreements at December 31, 2020. Two formerly forborne borrowers and one borrower performing in accordance with a forbearance agreement were in maturity default at December 31, 2020. |
INVESTMENT IN REAL ESTATE AND O
INVESTMENT IN REAL ESTATE AND OTHER ACQUIRED ASSETS AND ASSUMED LIABILITIES | 12 Months Ended |
Dec. 31, 2020 | |
Investment In Real Estate And Other Acquired Assets And Assumed Liabilities [Abstract] | |
Investment In Real Estate And Other Acquired Assets And Assumed Liabilities | NOTE 8 - INVESTMENT IN REAL ESTATE AND OTHER ACQUIRED ASSETS AND ASSUMED LIABILITIES In November 2020, the Company received the deed in lieu of foreclosure on a hotel property that formerly collateralized a $38.0 million CRE whole loan. The Company determined that the acquisition of the hotel property should be accounted for as an asset acquisition. T he Company obtained third-party valuations of the acquired assets and assumed liabilities. The fair value of the total net assets acquired was $39.8 million, which resulted in the recognition of a $1.6 million gain on conversion recorded on the Company’s consolidated statements of operations. The following table summarizes the acquisition date value of the acquired assets and liabilities (in thousands): December 31, 2020 Assets acquired: Building $ 30,787 Site Improvements 157 FF&E 2,980 Investment in real estate 33,924 Right of use assets (1) 5,603 Intangible assets (2) 3,336 Total assets acquired 42,863 Liabilities assumed: Lease liabilities (3,113 ) Total liabilities assumed (3,113 ) Fair value of net asset acquired $ 39,750 (1) Right of use assets include a right of use asset associated with an acquired (2) Intangible assets include a franchise agreement intangible of $2.8 million and a customer list intangible asset of $477,000 at December 31, 2020. The following table summarizes the book value of the Company’s investments in real estate and related intangible assets (in thousands, except amounts in the footnotes): Accumulated Assets acquired: Cost Depreciation & Amortization Book Value Investment in real estate (1) $ 33,929 $ (123 ) $ 33,806 Right of use assets (2) 5,603 (11 ) 5,592 Intangible assets (3) 3,336 (42 ) 3,294 Total 42,868 (176 ) 42,692 Liabilities assumed: Lease liabilities (3,113 ) 6 (3,107 ) Total (3,113 ) 6 (3,107 ) $ 39,755 $ 39,585 (1) Includes approximately $5,000 of furniture and fixtures purchased for the property subsequent to the date of acquisition, i (2) Right of use assets include 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 $2.5 million at December 31, 2020. (3) Intangible assets include a franchise agreement intangible of $2.8 million and a customer list intangible asset of $477,000 at December 31, 2020. The right of use assets and lease liabilities comprised a ground lease acquired, determined to be an operating lease. The lease payments 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 amount of periods. The Company recorded approximately $6,000 of offsetting amortization and accretion on its right of use assets and lease liabilities during the year ended December 31, 2020. During the year ended December 31, 2020, the Company recorded amortization expense of approximately $47,000 on its intangible assets. The Company expects to record amortization expense of $375,000, $375,000, $355,000, $210,000 and $210,000 during the 2021, 2022, 2023, 2024 and 2025 fiscal years, respectively, on its intangible assets. |
INVESTMENT SECURITIES AVAILABLE
INVESTMENT SECURITIES AVAILABLE-FOR-SALE | 12 Months Ended |
Dec. 31, 2020 | |
Available For Sale Securities [Abstract] | |
INVESTMENT SECURITIES AVAILABLE-FOR-SALE | NOTE 9 - INVESTMENT SECURITIES AVAILABLE-FOR-SALE The following table summarizes the Company’s investment securities available-for-sale, including those pledged as collateral (in thousands, except amounts in the footnote): Amortized Cost (1) Unrealized Gains Unrealized Losses Fair Value (2) At December 31, 2020: CMBS, fixed-rate $ 2,080 $ — $ — $ 2,080 At December 31, 2019: CMBS, fixed-rate $ 132,235 $ 6,596 $ (792 ) $ 138,039 CMBS, floating-rate 382,659 995 (979 ) 382,675 Total $ 514,894 $ 7,591 $ (1,771 ) $ 520,714 (1) The amortized cost of CMBS excluded accrued interest receivable of $56,000 and $1.1 million at December 31, 2020 and 2019, respectively. ( 2 ) At December 31, 2019, investment securities available-for-sale with fair values of $466.9 million were pledged as collateral under related financings. There were no investment securities available-for-sale pledged as collateral at December 31, 2020. Beginning in the first quarter of 2020, the COVID-19 pandemic produced material and previously unforeseeable liquidity shocks to credit markets. This resulted in significant declines in the pricing of the Company’s investment securities available-for-sale, which triggered substantial margin calls by its counterparties and, in certain cases, formal notices of events of default, all of which were withdrawn or rescinded as of April 19, 2020 (see Note 11). As a result of these circumstances and the uncertainty caused by the COVID-19 pandemic, substantially all of 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 in connection with the sale of 67 CMBS, with total amortized cost of $401.3 million. The remaining unrealized losses of $6.1 million, were recorded on two securities that previously had fair values below the amortized cost bases and expected to be sold prior to the recovery of their cost bases with an offsetting charge directly to the amortized cost bases of the securities. Write-offs on these two securities are being recognized in earnings. During the twelve months ended December 31, 2019, the Company sold one CMBS position resulting in proceeds of $638,000 and a realized gain of $4,000. Prior to the adoption of the CECL standard on January 1, 2020, the Company measured its investment securities available-for-sale for other-than-temporary impairment. The Company recognized no other-than-temporary impairments on the investment securities available-for-sale during the year ended December 31, 2019. |
INVESTMENTS IN UNCONSOLIDATED E
INVESTMENTS IN UNCONSOLIDATED ENTITIES | 12 Months Ended |
Dec. 31, 2020 | |
Equity Method Investments And Joint Ventures [Abstract] | |
INVESTMENTS IN UNCONSOLIDATED ENTITIES | NOTE 10 - INVESTMENTS IN UNCONSOLIDATED ENTITIES The following table summarizes the Company’s investments in unconsolidated entities at December 31, 2020 and 2019 and equity in earnings of unconsolidated entities for the years ended December 31, 2020, 2019 and 2018 (dollars in thousands, except amount in the footnotes): Equity in Earnings of Unconsolidated Entities December 31, Years Ended December 31, Ownership % at December 31, 2020 2020 2019 2020 2019 2018 Pelium Capital (1) — % $ — $ — $ — $ — $ (182 ) RCM Global LLC (2) — % — — — — (12 ) Investment in LCC Preferred Stock (3) — % — — — — 411 Subtotal — — — — 217 Investment in RCT I and II (4) 3.0 % 1,548 1,548 77 100 96 Total $ 1,548 $ 1,548 $ 77 $ 100 $ 313 (1) In December 2018, Pelium Capital Partners, L.P. was fully liquidated. (2) In December 2018, RCM Global LLC was fully liquidated. (3) The Company’s investment in LEAF Commercial Capital, Inc. (“LCC”) liquidated in July 2017 as a result of the sale of LCC. Earnings for the year ended December 31, 2018 were related to the receipt of a distribution of funds formerly held in escrow accounts established as part of the sale. ( 4 ) During the years ended December 31, 2020 , 2019 and 2018 , dividends from the investments in RCT I and RCT II’s common shares we re recorded in other revenue. See Note 1 1 for the disclosures on the associated unsecured junior subordinated debentures . |
BORROWINGS
BORROWINGS | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
BORROWINGS | NOTE 11 - 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, repurchase agreements, secured term warehouse financing facilities, a senior secured financing facility, 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, 2020: XAN 2019-RSO7 Senior Notes $ 415,621 $ 2,861 $ 412,760 1.60% 15.3 years $ 516,979 XAN 2020-RSO8 Senior Notes 388,459 4,164 384,295 1.62% 14.2 years 475,347 XAN 2020-RSO9 Senior Notes 234,731 3,857 230,874 3.31% 16.3 years 285,862 Unsecured junior subordinated debentures 51,548 — 51,548 4.18% 15.7 years — 4.50% Convertible Senior Notes 143,750 6,498 137,252 4.50% 1.6 years — Senior Unsecured Notes due 2027 50,000 3,574 46,426 12.00% 6.6 years — Senior secured financing facility 33,360 4,046 29,314 5.75% 6.6 years 239,385 CRE - term warehouse financing facilities (1) 13,516 1,258 12,258 2.66% 299 days 20,000 Total $ 1,330,985 $ 26,258 $ 1,304,727 2.83% 13.0 years $ 1,537,573 Principal Outstanding Unamortized Issuance Costs and Discounts Outstanding Borrowings Weighted Average Borrowing Rate Weighted Average Remaining Maturity Value of Collateral At December 31, 2019: XAN 2018-RSO6 Senior Notes $ 177,118 $ 1,352 $ 175,766 3.17% 15.5 years $ 293,890 XAN 2019-RSO7 Senior Notes 575,679 5,007 570,672 3.03% 16.3 years 687,037 Unsecured junior subordinated debentures 51,548 — 51,548 5.90% 16.7 years — 4.50% Convertible Senior Notes 143,750 10,137 133,613 4.50% 2.6 years — 8.00% Convertible Senior Notes 21,182 9 21,173 8.00% 15 days — CRE - term warehouse financing facilities (1) 547,619 2,714 544,905 3.71% 1.2 years 705,221 CMBS - short term repurchase agreements (2) 374,900 — 374,900 2.87% 21 days 484,398 Total $ 1,891,796 $ 19,219 $ 1,872,577 3.45% 7.4 years $ 2,170,546 (1) Principal outstanding includes accrued interest payable of $16,000 and $810,000 at December 31, 2020 and 2019, respectively (2) Principal outstanding includes accrued interest payable of $470,000 and at December 31, 2019 Securitizations The following table sets forth certain information with respect to the Company’s consolidated securitizations at December 31, 2020 (in thousands): Closing Date Maturity Date End of Designated Principal Reinvestment Period (1) Total Note Paydowns from Closing Date through December 31, 2020 XAN 2019-RSO7 April 2019 April 2036 April 2022 $ 170,190 XAN 2020-RSO8 March 2020 March 2035 March 2023 $ 47,284 XAN 2020-RSO9 (2) September 2020 April 2037 N/A $ 11,063 (1) The designated principal reinvestment period is the period in which principal repayments can be utilized to purchase loans held outside of the respective securitization that represent the funded commitments of existing collateral in the respective securitization that were not funded as of the date the respective securitization was closed. (2) A designated principal reinvestment period is excluded from the terms of Exantas Capital Corp. 2020-RSO9, Ltd.’s (“XAN 2020-RSO9”) indenture. XAN 2020-RSO9 includes a future advances reserve account of $18.6 million at December 31, 2020 to fund unfunded commitments, 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, 2020 and 2019 were eliminated in consolidation. RCC 2017-CRE5 In July 2017, the Company closed Resource Capital Corp. 2017-CRE5, Ltd. (“RCC 2017-CRE5”) XAN 2018-RSO6 In June 2018, the Company closed Exantas Capital Corp. 2018-RSO6, Ltd. (“XAN 2018-RSO6”) In September 2020, the Company executed the optional liquidation of XAN 2018-RSO6, and all of the outstanding senior notes were paid off from the sales proceeds of certain of the securitization’s assets. 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. XAN 2019-RSO7 issued a total of $585.8 million of non-recourse, floating-rate notes at par, of which ACRES RF purchased $10.0 million, or approximately 20.4%, of the Class D notes. Additionally, ACRES RF purchased 100% of the Class E and Class F notes and a subsidiary of ACRES RF purchased 100% of the outstanding preference shares. The notes purchased by ACRES RF are subordinated in right of payment to all other senior notes issued by XAN 2019-RSO7, but are senior in right of payment to the preference shares. The preference shares are subordinated in right of payment to all other securities issued by XAN 2019-RSO7. At closing, the senior notes issued to investors consisted of the following classes: (i) $390.0 million of Class A notes bearing interest at one-month LIBOR plus 1.00%, increasing to 1.25% in April 2024; (ii) $70.4 million of Class A-S notes bearing interest at one-month LIBOR plus 1.50%, increasing to 1.75% in April 2024; (iii) $33.5 million of Class B notes bearing interest at one-month LIBOR plus 1.70%, increasing to 2.20% in May 2024; (iv) $42.9 million of Class C notes bearing interest at one-month LIBOR plus 2.05%, increasing to 2.55% in June 2024; and (v) $49.0 million of Class D notes bearing interest at one-month LIBOR plus 2.70% increasing to 3.20% in July 2024. All of the notes issued mature in April 2036, although the Company has the right to call the notes any time after May 2021. Principal repayments received, after closing and ending in April 2022, may be used to purchase funding participations with respect to existing collateral held outside of the securitization. XAN 2020-RSO8 In March 2020, the Company closed Exantas Capital Corp. 2020-RSO8, Ltd. (“XAN 2020-RSO8”), a $522.6 million CRE debt securitization transaction that provided financing for CRE loans. XAN 2020-RSO8 issued a total of $435.7 million of non-recourse, floating-rate notes at par, of which ACRES RF purchased 100% of the Class D and Class E notes. The Company’s investments in the Class D and Class E notes were financed by CMBS short-term repurchase agreements and were sold in conjunction with the disposition of the Company’s CMBS portfolio in April 2020 (See Note 9). Additionally, ACRES RF purchased 100% of the Class F and Class G notes and a subsidiary of ACRES RF purchased 100% of the outstanding preference shares. The notes purchased by ACRES RF are subordinated in right of payment to all other senior notes issued by XAN 2020-RSO8, but are senior in right of payment to the preference shares. The preference shares are subordinated in right of payment to all other securities issued by XAN 2020-RSO8. At closing, the senior notes issued to investors consisted of the following classes: (i) $295.3 million of Class A notes bearing interest at one-month LIBOR plus 1.15%, increasing to 1.40% in November 2024; (ii) $39.2 million of Class A-S notes bearing interest at one-month LIBOR plus 1.45%, increasing to 1.70% in December 2024; (iii) $26.1 million of Class B notes bearing interest at one-month LIBOR plus 1.75%, increasing to 2.25% in January 2025; (iv) $32.7 million of Class C notes bearing interest at one-month LIBOR plus 2.15%, increasing to 2.65% in January 2025; (v) $26.1 million of Class D notes bearing interest at one-month LIBOR plus 2.50%, increasing to 3.00% in February 2025; and (vi) $16.3 million of Class E notes bearing interest at one-month LIBOR plus 2.80%, increasing to 3.30% in February 2025. All of the notes issued mature in March 2035, although the Company has the right to call the notes any time after March 2022. Principal repayments received, after closing and ending in March 2023, may be used to purchase funding participations with respect to existing collateral held outside of the securitization. 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. XAN 2020-RSO9 issued a total of $245.8 million of non-recourse, floating-rate notes to third parties at par. Additionally, ACRES RF retained 100% of the Class E and Class F notes and a subsidiary of ACRES RF retained 100% of the outstanding preference shares. The notes purchased by ACRES RF are subordinated in right of payment to all other senior notes issued by XAN 2020-RSO9, but are senior in right of payment to the preference shares. The preference shares are subordinated in right of payment to all other securities issued by XAN 2020-RSO9. At closing, the senior notes issued to investors consisted of the following classes: (i) $158.9 million of Class A notes bearing interest at one-month LIBOR plus 2.50%, increasing to 2.75% in June 2024; (ii) $26.7 million of Class A-S notes bearing interest at one-month LIBOR plus 3.50%, increasing to 3.75% in July 2025; (iii) $16.7 million of Class B notes bearing interest at one-month LIBOR plus 3.90%, increasing to 4.40% in July 2025; (iv) $20.8 million of Class C notes bearing interest at one-month LIBOR plus 4.25%, increasing to 4.75% in August 2025; and (v) $22.7 million of Class D notes bearing interest at one-month LIBOR plus 5.50%, increasing to 6.00% in August 2025. All of the notes issued mature in April 2037, although the Company has the right to call the notes any time after September 2022. 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, 2020 and 2019. The interest rates for RCT I and RCT II, at December 31, 2020, were 4.19% and 4.16%, respectively. The interest rates for RCT I and RCT II, at December 31, 2019, were 5.91% and 5.89%, 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 and 8.00% Convertible Senior Notes The Company issued $100.0 million aggregate principal of its 8.00% convertible senior notes due 2020 (“8.00% Convertible Senior Notes”) The following table summarizes the 4.50% Convertible Senior Notes at December 31, 2020 (dollars in thousands, except the conversion prices and amounts in the footnotes): Principal Outstanding Borrowing Rate Effective Rate (1)(2) Conversion Rate (3)(4) Conversion Price (4) Maturity Date 4.50% Convertible Senior Notes $ 143,750 4.50 % 7.43 % 27.7222 $ 36.06 August 15, 2022 (1) Includes the amortization of the market discounts and deferred debt issuance costs, if any, for the 4.50% Convertible Senior Notes recorded in interest expense on the consolidated statements of operations. (2) During the years ended December 31, 2020 and 2019 the effective interest rate for the 4.50% Convertible Senior Notes was 7.43%. (3) Represents the number of shares of common stock per $1,000 principal amount of the 4.50% Convertible Senior Notes’ principal outstanding, subject to adjustment as provided in the Third Supplemental Indenture (the “4.50% Convertible Senior Notes Indenture (4) The conversion rate and conversion price of the 4.50% Convertible Senior Notes at December 31, 2020 are adjusted to reflect quarterly cash dividends in excess of a $0.30 dividend threshold, as defined in the 4.50% Convertible Senior Notes Indenture. The 4.50% Convertible Senior Notes are convertible at the option of the holder at any time up until one business day before the maturity date and may be settled in cash, the Company’s common stock or a combination of cash and the Company’s common stock, at the Company’s election. The Company may not redeem the 4.50% Convertible Senior Notes prior to maturity. The closing price of the Company’s common stock was $11.97 on December 31, 2020, which did not exceed the conversion price of its 4.50% Convertible Senior Notes at December 31, 2020. Senior Unsecured Notes 12.00% Senior Unsecured Notes Due 2027 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 may issue to Oaktree and MassMutual from time to time up to $125.0 million aggregate principal amount of 12.00% senior unsecured notes due 2027 (the “Senior Unsecured Notes due 2027”). The Senior Unsecured Notes due 2027 have 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 Senior Unsecured Notes due 2027. In addition, on July 31, 2020, the Company issued to MassMutual $8.0 million aggregate principal amount of the Senior Unsecured Notes due 2027. The Company recorded a discount of $3.1 million (the offset of which was recorded in additional paid-in capital) on the Senior Unsecured Notes due 2027 that reflects the difference between the proceeds received less the fair value of the notes as if they were issued without the detachable warrants. The market discounts and deferred debt issuance costs are amortized into interest expense on the consolidated statements of operations on an effective interest basis over the period ending in July 2027. The effective interest rate is 13.65%. At any time and from time to time prior to January 31, 2022, the Company may elect to issue to Oaktree and MassMutual up to $75.0 million aggregate principal amount of additional Senior Unsecured Notes due 2027. The Note and Warrant Purchase Agreement contains events of default, subject to certain materiality thresholds and grace periods. Senior Secured Financing Facility, Term Warehouse Financing Facilities and Repurchase Agreements Borrowings under the Company’s senior secured financing facility, term warehouse facilities and repurchase agreements senior secured financing facility, term warehouse facilities and December 31, 2020 December 31, 2019 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) $ 29,314 $ 239,385 17 5.75% $ — $ — — —% CRE - Term Warehouse Financing Facilities (2) Wells Fargo Bank, N.A. (3) — — — —% 225,217 291,903 28 3.70% Barclays Bank PLC (4) — — — —% 111,881 145,035 14 3.99% JPMorgan Chase Bank, N.A. (5) 12,258 20,000 1 2.66% 207,807 268,283 17 3.56% CMBS - Short-Term Repurchase Agreements (2) Deutsche Bank Securities Inc. — — — —% 37,141 57,331 6 3.13% JP Morgan Securities LLC — — — —% 33,703 42,075 13 2.87% Barclays Capital Inc. — — — —% 87,643 112,939 7 2.82% RBC Capital Markets, LLC — — — —% 34,829 47,081 5 2.96% RBC (Barbados) Trading Bank Corporation — — — —% 181,584 224,972 30 2.82% Total $ 41,572 $ 259,385 $ 919,805 $ 1,189,619 (1) Includes $4.0 million of deferred debt issuance costs at December 31, 2020 on the senior secured financing facility. (2) Outstanding borrowings include accrued interest payable. (3) Includes $607,000 of deferred debt issuance costs at December 31, 2019 (4) Includes $817,000 of deferred debt issuance costs at December 31, 2019. (5) Includes $1.3 million and $1.3 million of deferred debt issuance costs at December 31, 2020 and 2019, respectively, which includes $678,000 of deferred debt issuance costs at December 31, 2020 from other term warehouse financing facilities with no balance. The following table shows information about the amount at risk under the warehouse financing facilities (dollars in thousands): Amount at Risk (1) Weighted Average Remaining Maturity Weighted Average Interest Rate At December 31, 2020: CRE - Term Warehouse Financing Facilities JPMorgan Chase Bank, N. A. $ 6,559 299 days 2.66% (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. The Company was in compliance with all financial covenants in each of the respective agreements at December 31, 2020. 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 will be used to finance the Company’s core CRE lending business. The MassMutual Facility has an interest rate of 5.75% per annum payable monthly. The MassMutual Facility matures 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 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 (collectively with RSO6 and RSO7, the “Additional Subsidiaries”), each an indirect, wholly owned subsidiary of the Company, in favor of the secured parties under the MassMutual Loan Agreement. 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 the Additional Subsidiaries 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 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. 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 Bank, N.A. (“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 $400.0 million maximum facility amount and extended the term of the facility to July 2020 with three one-year In May 2020, Wells Fargo revised the minimum equity financial covenant required of the Company as of March 31, 2020 and provided a framework to avoid credit-based markdowns for approximately four months, ending September 4, 2020. In July 2020 and September 2020, the maturity date of the 2018 Facility was extended to September 3, 2020 and October 3, 2020, respectively. In October 2020, the 2018 Facility was amended, at the Company’s request, to reduce the 2018 Facility’s maximum amount from $400.0 million to $250.0 million, extend the funding expiration date and revise covenant definitions so that credit losses are determined in accordance with a risk rating-based methodology. In connection with the amendment of the 2018 Facility, the Company exercised the first of three options to extend the termination date for a one year period thereby extending the maturity date to October 2, 2021. The 2018 Facility, consistent with the 2012 Facility, contains customary events of default. The remedies for such events of default are also customary for this type of transaction and include the acceleration of all obligations of the Company to repay the purchase price for purchased assets. The 2018 Facility, consistent with the 2012 Facility, also contains margin call provisions relating to a decline in the market value of a security. Under these circumstances, Wells Fargo may require the Company to transfer cash in an amount sufficient to eliminate any margin deficit resulting from such a decline. Consistent with the guaranty agreement dated February 2012, the Company continues to guarantee the payment and performance of its subsidiaries’ obligations to the lender through an amended and restated guaranty agreement dated in July 2018 (the “2018 Guaranty”), including all reasonable expenses that are incurred by the lender in connection with the enforcement of the 2018 Facility. The 2018 Guaranty includes covenants that, among other requirements, stipulate certain thresholds, including: required liquidity, required capital, total indebtedness to total equity, EBITDA to interest expense and total indebtedness. In April 2018, the Company’s indirect wholly-owned subsidiary entered into a master repurchase agreement (the “Barclays Facility”) with Barclays Bank PLC (“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 May 2020, the Company entered into an amendment to the Barclays Guaranty that revised its minimum equity financial covenant as of March 1, 2020. Barclays also provided a framework to avoid credit-based markdowns for approximately four months, ending August 31, 2020. In October 2020, the Company entered into an amendment to the Barclays Guaranty that revised a covenant definition so that credit losses are determined in accordance with a risk rating-based methodology. one-year The Barclays Facility contains margin call provisions that provide Barclays with certain rights when there has been a decline in the value of purchased assets. Under these circumstances, Barclays may require the Company to transfer cash in an amount necessary to eliminate such margin deficit or repurchase the asset that resulted in the margin call. In connection with the Barclays Facility, the Company fully guaranteed all payments and performance under the Barclays Facility pursuant to a guaranty agreement (the “Barclays Guaranty”). The Barclays Guaranty 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 and security agreement with Barclays whereby it agreed to pledge and grant to Barclays 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 Barclays , subject to certain materiality thresholds and grace periods, customary for this type of financing arrangement. principal outstanding under Barclay liquidation by Barclays of purchased assets then subject to the Barclays In October 2018, an indirect wholly-owned subsidiary of the Company entered into a master repurchase agreement (the “JPMorgan Chase Facility”) with JPMorgan Chase Bank, N.A. (“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. The JPMorgan Chase Facility has a maximum facility amount of $250.0 million one-year 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 a guarantee agreement (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. Trust Certificates - Term Repurchase Facilities In September 2017, a subsidiary entered into a repurchase and securities agreement (the “2017 Term Repurchase Trust Facility”) with RSO Repo SPE Trust 2017, a structure that provides financing under a structured sale of trust certificates to qualified institutional buyers through an offering led by Wells Fargo Securities. In July 2019, the Company paid off the outstanding balance of the 2017 Term Repurchase Trust Facility in connection with the redemption of RCC 2017-CRE5. CMBS - Short-Term Repurchase Agreements The COVID-19 pandemic produced material and previously unforeseeable liquidity shocks in credit markets causing significant declines in the pricing of the Company’s investment securities available-for-sale that were collateral for the Company’s CMBS short-term repurchase facilities (see Note 9). As a result, in March 2020, the Company received written notices from RBC Capital Markets, LLC, RBC (Barbados) Trading Bank Corporation and Deutsche Bank Securities Inc. alleging that events of default had occurred under the Company’s associated repurchase agreements as a result of not meeting certain margin calls. These notices were subsequently either withdrawn or rescinded. The Company had no outstanding balances on its CMBS - short-term repurchase agreements at December 31, 2020. Contractual maturity dates of the Company’s borrowings’ principal outstanding by category and year are presented in the table below (in thousands): Total 2021 2022 2023 2024 2025 and Thereafter At December 31, 2020: CRE securitizations $ 1,038,811 $ — $ — $ — $ — $ 1,038,811 Unsecured junior subordinated debentures 51,548 — — — — 51,548 4.50% Convertible Senior Notes 143,750 — 143,750 — — — Senior Unsecured Notes due 2027 50,000 — — — — 50,000 Senior Secured Financing Facility 33,360 — — — — 33,360 CRE - term warehouse financing facilities (1) 13,516 13,516 — — — — Total $ 1,330,985 $ 13,516 $ 143,750 $ — $ — $ 1,173,719 (1) Includes accrued interest payable in the balances of principal outstanding. |
SHARE ISSUANCE AND REPURCHASE
SHARE ISSUANCE AND REPURCHASE | 12 Months Ended |
Dec. 31, 2020 | |
Stockholders Equity Note [Abstract] | |
SHARE ISSUANCE AND REPURCHASE | NOTE 12 - SHARE ISSUANCE AND REPURCHASE 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, 2020, the Company had 4.8 million shares of Series C Preferred Stock outstanding, with a weighted average offering price, excluding offering costs, of $25.00. In March 2016, the Board approved a securities repurchase plan and i n November 2020, the Board reauthorized and approved the continued use of the Company’s existing share repurchase program in order to repurchase up to $20.0 million of the currently outstanding shares of the Company’s common stock through March 31, 2021. In March 2021, our Board authorized the extension of the previous $20.0 million authorization through the second quarter of 2021 or until the $20.0 million is fully deployed. Additionally, the Board authorized the Company to enter into written trading plans under Rule 10b5-1 of the Securities Exchange Act of 1934. In connection with the Note and Warrant Purchase Agreement, as discussed in Note 11, the Senior Unsecured Notes due 2027 give Oaktree and MassMutual warrants to purchase an aggregate of up to 1.2 million 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 Senior Unsecured Notes due 2027, 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 sheet at their fair value of $3.1 million at issuance. At any time and from time to time prior to January 31, 2022, the Company may elect to issue to Oaktree and MassMutual warrants to purchase an additional 699,992 shares of the common stock for a purchase price equal to the principal amount of the additional Senior Unsecured Notes due 2027 being issued. 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. |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
SHARE-BASED COMPENSATION | NOTE 13 - SHARE-BASED COMPENSATION In June 2019, the Company’s shareholders approved the Exantas Capital Corp. Second Amended and Restated Omnibus Equity Compensation Plan (the “June 2019 Plan”), which amended the May 2014 plan. The June 2019 Plan (i) increased the number of shares authorized for issuance from 1,091,666 shares to 1,591,666 shares; (ii) extended the expiration date from May 2024 to June 2029; and (iii) made other clarifying and updating amendments. The following table summarizes the Company’s restricted common stock transactions: Non-Employee Directors Non- Employees (1) Total Unvested shares at January 1, 2020 8,186 132,134 140,320 Issued 21,648 59,254 80,902 Vested (18,224 ) (181,391 ) (199,615 ) Forfeited — (9,997 ) (9,997 ) Unvested shares at December 31, 2020 11,610 — 11,610 (1) Non-employees were employees of C-III or Resource America, Inc. (“Resource America”) from January 1, 2020 to July 31, 2020. On July 31, 2020, the Company’s management contract was purchased from the Prior Manager by the Manager in the ACRES acquisition. See Note 1. On July 31, 2020, all unvested restricted stock awards were accelerated upon the close of the ACRES acquisition. The fair values at grant date of the shares of restricted common stock granted to non-employees during the years ended December 31, 2020, 2019 and 2018 were $2.1 million, $2.0 million and $2.0 million, respectively. The fair values at grant date of the shares of restricted common stock issued to the Company’s eight non-employee directors that served at any time during the years ended December 31, 2020, 2019 and 2018 were $255,000, $300,000 and $255,000, respectively. At December 31, 2019, the total unrecognized restricted common stock expense for non-employees was $1.1 million, with a weighted average amortization period remaining of 1.8 years. There was no unrecognized restricted common stock expense for non-employees at December 31, 2020. The following table summarizes restricted common stock grants during the year ended December 31, 2020: Grant Date Shares Vesting per Year Vesting Date(s) January 21, 2020 (1) 59,255 33.3% January 21, 2021, January 21, 2022 and January 21, 2023 February 3, 2020 (1) 947 100% February 3, 2021 March 9, 2020 (1) 3,614 100% March 9, 2021 June 1, 2020 (1) 5,477 100% June 1, 2021 July 31, 2020 5,231 100% July 31, 2021 September 30, 2020 6,379 100% September 30, 2021 (1) All unvested restricted stock grants made before July 31, 2020 were accelerated on July 31, 2020 upon the close of the ACRES acquisition. The following table summarizes the status of the Company’s vested stock options at December 31, 2020: Vested Options Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands) Vested at January 1, 2020 3,333 $ 76.80 Vested — — Exercised — — Forfeited — — Expired — — Vested at December 31, 2020 3,333 $ 76.80 0.37 $ — There were no options granted during the years ended December 31, 2020 or 2019. The outstanding stock options have contractual terms of ten years and will expire in 2021. The components of equity compensation expense for the periods presented are as follows (in thousands): Years Ended December 31, 2020 2019 2018 Restricted shares granted to non-employees (1) $ 2,855 $ 1,937 $ 2,427 Restricted shares granted to non-employee directors 281 276 290 Total $ 3,136 $ 2,213 $ 2,717 (1) Non-employees were employees of C-III or Resource America from January 1, 2020 to July 31, 2020. On July 31, 2020, the Company’s management contract was purchased from the Prior Manager by the Manager in the ACRES acquisition. See Note 1. 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. The Manager received no incentive management compensation for the years ended December 31, 2020 and 2018. During the year ended December 31, 2019, the Company incurred incentive compensation payable to the Prior Manager of $606,000 of which $455,000 was paid in cash and $151,000, representing 4,435 shares, was paid in common stock. All equity awards, apart from incentive compensation under the Management Agreement, are discretionary in nature and subject to approval by the compensation committee of the Board. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | NOTE 14 - EARNINGS PER SHARE The following table presents a reconciliation of basic and diluted earnings (losses) per common share for the periods presented as follows (dollars in thousands, except per share amounts): Years Ended December 31, 2020 2019 2018 Net (loss) income from continuing operations $ (197,713 ) $ 36,217 $ 27,306 Net income allocated to preferred shares (10,350 ) (10,350 ) (12,972 ) Consideration paid in excess of carrying value of preferred shares — — (7,482 ) Net (loss) income from continuing operations allocable to common shares (208,063 ) 25,867 6,852 Net (loss) income from discontinued operations, net of tax — (251 ) 121 Net (loss) income allocable to common shares $ (208,063 ) $ 25,616 $ 6,973 Weighted average number of common shares outstanding: Weighted average number of common shares outstanding - basic 10,566,904 10,476,704 10,399,440 Weighted average number of warrants outstanding (1) 196,357 — — Total weighted average number of common shares outstanding - basic 10,763,261 10,476,704 10,399,440 Effect of dilutive securities - unvested restricted stock — 80,081 61,594 Weighted average number of common shares outstanding - diluted 10,763,261 10,556,785 10,461,034 Net (loss) income per common share - basic: Continuing operations $ (19.33 ) $ 2.47 $ 0.66 Discontinued operations — (0.02 ) 0.01 Net (loss) income per common share - basic $ (19.33 ) $ 2.45 $ 0.67 Net (loss) income per common share - diluted: Continuing operations $ (19.33 ) $ 2.45 $ 0.66 Discontinued operations — (0.02 ) 0.01 Net (loss) income per common share - diluted $ (19.33 ) $ 2.43 $ 0.67 (1) See Note 12 for further details regarding the warrants. For the 4.50% Convertible Senior Notes, the Company has the intent and ability to settle the principal amount in cash and intends to settle the conversion feature for the amount above the conversion price, or the conversion spread, if any, in common stock. The Company uses the treasury stock method for calculating any potential dilutive effect of the conversion spread on diluted EPS, if applicable. The conversion spread will have a dilutive impact on diluted EPS when the average market price of the Company’s common stock for a given period exceeds the conversion price of the 4.50% Convertible Senior Notes. 6.00% 8.00% |
DISTRIBUTIONS
DISTRIBUTIONS | 12 Months Ended |
Dec. 31, 2020 | |
Distributions [Abstract] | |
DISTRIBUTIONS | NOTE 15 - 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), 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 2021 dividends will be determined by the Company’s Board, which will also consider the composition of any dividends declared, including the option of paying a portion in cash and the balance in additional shares of common stock. For the year ended December 31, 2020, the Company did not pay any common share distributions. For the years ended December 31, 2019 and 2018, the Company declared and subsequently paid dividends of $2.85 and $1.425 per common share, respectively. The following tables present dividends declared (on a per share basis) for the years ended December 31, 2020, 2019 and 2018 and for the period from January 1, 2018 through March 26, 2018 with respect to the Company’s Series B Preferred Stock: Common Stock Date Paid Total Dividend Paid Dividend Per Share (in thousands) 2019 December 31 January 28, 2020 $ 8,767 $ 0.825 September 30 October 25 $ 7,967 $ 0.75 June 30 July 26 $ 7,172 $ 0.675 March 31 April 26 $ 6,373 $ 0.60 2018 December 31 January 25, 2019 $ 5,540 $ 0.525 September 30 October 26 $ 4,749 $ 0.45 June 30 July 27 $ 3,165 $ 0.30 March 31 April 27 $ 1,584 $ 0.15 Series B Preferred Stock Series C Preferred Stock Date Paid Total Dividend Paid Dividend Per Share Date Paid Total Dividend Paid Dividend Per Share (in thousands) (in thousands) 2020 December 31 N/A N/A N/A February 1, 2021 $ 2,587 $ 0.5390625 March 31, June 30 and September 30 N/A N/A N/A October 25 $ 7,763 $ 1.6171875 2019 December 31 N/A N/A N/A January 30, 2020 $ 2,587 $ 0.5390625 September 30 N/A N/A N/A October 30 $ 2,588 $ 0.5390625 June 30 N/A N/A N/A July 30 $ 2,587 $ 0.5390625 March 31 N/A N/A N/A April 30 $ 2,588 $ 0.5390625 2018 December 31 N/A N/A N/A January 30, 2019 $ 2,588 $ 0.5390625 September 30 N/A N/A N/A October 30 $ 2,588 $ 0.5390625 June 30 N/A N/A N/A July 30 $ 2,588 $ 0.5390625 March 31 N/A N/A N/A April 30 $ 2,588 $ 0.5390625 March 26 March 26 $ 1,480 $ 0.320830 N/A N/A N/A |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | NOTE 16 - ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following table presents the changes in each component of accumulated other comprehensive income (loss) for the year ended December 31, 2020 (in thousands): Net Unrealized (Loss) Gain on Derivatives Net Unrealized Gain (Loss) on Investment Securities Available-for-Sale Accumulated Other Comprehensive Income (Loss) Balance at January 1, 2020 $ (3,999 ) $ 5,820 $ 1,821 Other comprehensive loss before reclassifications (7,233 ) (191,283 ) (198,516 ) Amounts reclassified from accumulated other comprehensive income (1) 1,254 185,463 186,717 Balance at December 31, 2020 $ (9,978 ) $ — $ (9,978 ) (1) Amounts reclassified from accumulated other comprehensive income are reclassified to interest expense and net realized and unrealized gain (loss) on investment securities available-for-sale and loans and derivatives on the Company’s consolidated statements of operations. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 17 - RELATED PARTY TRANSACTIONS Management Agreement In March 2005, the Company entered into a Management Agreement, which was last amended and restated on July 31, 2020, 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 provides 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 is equal to a minimum of $442,000. During the year ended December 31, 2018, the monthly base management fee was fixed at $937,500 per month. 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 core earnings (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 ending 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 ending December 31, 2022 , the product of (a) 20% and (b) the excess of (i) core earnings 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 ending December 31, 2022, the excess of (1) the product of (a) 20% and (b) the excess of (i) core earnings 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% • for each calendar quarter thereafter, the excess of (1) the product of (a) 20% and (b) the excess of (i) core earnings 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 Core Earnings 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 our Manager or its affiliates for their services in connection with the making of fixed-rate commercial real estate loans by us, 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% in 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. 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 year ended December 31, 2020, the Manager earned base management fees of approximately $2.2 million. No incentive compensation was earned for the year ended December 31, 2020. At December 31, 2020, $442,000 of base management fees were payable by the Company to the Manager. There was no incentive compensation payable at December 31, 2020. 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 year ended December 31, 2020, the Company reimbursed the Manager $1.8 million for all such compensation and costs. At December 31, 2020, the Company had payables to the Manager pursuant to the Management Agreement totaling approximately $380,000 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 sheet, 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 six years, subject to two one-year During the year ended December 31, 2020, the Company recorded interest income of $153,000 on the ACRES Loan in other income on the consolidated statements of operations. At December 31, 2020, the ACRES Loan had a principal balance of $11.9 million recorded in loan receivable - related party on the consolidated balance sheet. At December 31, 2020, the ACRES loan had no interest receivable. During the year ended December 31, 2020, the Company originated two CRE whole loans with a total par of $24.0 million that were refinanced from loans originated by affiliates of the Manager. At December 31, 2020, the Company retained equity in one securitization entity that was 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. 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 serves as special servicer of XAN 2020-RSO9. During the year ended December 31, 2020, ACRES Capital Servicing received no portfolio servicing fees or special servicing fees. Relationship with C-III and certain of its Subsidiaries Relationship with C-III and certain of its Subsidiaries. The Prior Manager was a wholly-owned subsidiary of Resource America, which is a wholly-owned subsidiary of C-III. C-III is indirectly controlled and partially owned by Island Capital Group LLC (“Island Capital”). Effective July 31, 2020, in connection with the ACRES acquisition, Andrew L. Farkas, the managing member of Island Capital and the chairman and chief executive officer of C-III, resigned his position as the Company’s Chairman. In addition, Robert C. Lieber and Matthew J. Stern, each executive managing directors of both C-III and Island Capital, resigned their positions as the Company’s Chief Executive Officer and President, respectively. Lastly, Jeffrey P. Cohen, president of C-III and Island Capital, resigned his position as a member of the Board. Those officers and the Company’s other executive officers were also officers of the Company’s Prior Manager, Resource America, C-III and/or affiliates of those companies. Prior to September 8, 2020, a non-employee director of the Company held the position of Executive Vice President at Resource America. 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 years ended December 31, 2020, 2019 and 2018, the Prior Manager earned base management fees of $3.8 million, $8.3 million and $11.3 million, respectively. The Prior Manager did not earn incentive compensation for the years ended December 31, 2020 and 2018. For the year ended December 31, 2019, the Prior Manager earned incentive compensation of $606,000, of which $455,000 was paid in cash and $151,000 was paid in common stock. At December 31, 2020, there was no base management fees payable by the Company to the Prior Manager. At December 31, 2019, $701,000 of base management fees were payable by the Company to the Prior Manager. There was no incentive compensation payable at December 31, 2020 and 2019. The Prior 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 Prior Manager’s and its affiliates’ expenses for (a) the wages, salaries and benefits of the Chief Financial Officer, (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, and (c) personnel principally devoted to the Company’s ancillary operating subsidiaries. The Company reimbursed out-of-pocket expenses and certain other costs incurred by the Prior Manager and its affiliates that relate directly to the Company’s operations. For the years ended December 31, 2020, 2019 and 2018, the Company reimbursed the Prior Manager $4.1 million, $4.2 million and $5.0 million, respectively, for all such compensation and costs. At December 31, 2019, the Company had payables to Resource America and its subsidiaries pursuant to the management agreement totaling approximately $1.1 million. The Company had no payables to Resource America and its subsidiaries at December 31, 2020. 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. In July 2020, ACRES and the Company entered into agreements with Resource America pursuant to which Resource America provides office space and other office-related services as well as performs an internal audit program. During the year ended December 31, 2020, the Company incurred $40,000 of expenses in connection with these agreements. In September 2020, the agreements were transferred to Resource Real Estate Opportunity REIT, Inc. (“Resource Real Estate Opportunity REIT”). At December 31, 2020, the Company retained equity in five securitization entities that were structured for the Company by the Prior Manager, although three of the securitization entities were substantially liquidated as of December 31, 2020. Under the Management Agreement, the Prior Manager was not separately compensated by the Company for executing these transactions and was not separately compensated for managing the securitizations entities and their assets. Relationship with Resource Real Estate, LLC. Resource Real Estate, LLC (“Resource Real Estate”), an indirect wholly-owned subsidiary of Resource America and C-III, originated, financed and managed the Company’s CRE loan portfolio until the ACRES acquisition on July 31, 2020. The Company reimbursed Resource Real Estate for loan origination costs associated with all loans originated. At December 31, 2019, the Company had receivables from Resource Real Estate for loan deposits of $101,000. There were no receivables from Resource Real Estate for loan deposits at December 31, 2020. Resource Real Estate served as special servicer for the following liquidated real estate securitization transactions, which provided financing for CRE loans: (i) Resource Capital Corp. 2014-CRE2, Ltd., a $353.9 million securitization that closed in July 2014 and liquidated in August 2017; (ii) Resource Capital Corp. 2015-CRE3, Ltd., a $346.2 million securitization that closed in February 2015 and liquidated in August 2018; (iii) Resource Capital Corp. 2015-CRE4, Ltd., a $312.9 million securitization that closed in August 2015 and liquidated in July 2018; and (iv) RCC 2017-CRE5, a $376.7 million securitization that closed in July 2017 and liquidated in July 2019. Resource Real Estate also served as special servicer for XAN 2020-RSO8, a $522.6 million securitization that closed on March 2020. Resource Real Estate did not earn any special servicing fees during the years ended December 31, 2020, 2019 and 2018. Relationship with C-III Commercial Mortgage LLC and C3AM. 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 years ended December 31, 2020 and 2019, C-III Commercial Mortgage earned approximately $74,000 and $108,000, respectively, in exit fees. The Company had outstanding payables to C-III Commercial Mortgage of $48,000 at December 31, 2020 and none at December 31, 2019. C3AM served as the primary servicer for the CRE loans acquired in the May 2019 Loan Acquisition Agreement and for the CRE loans collateralizing RCC 2017-CRE5, XAN 2018-RSO6, a $514.2 million securitization that closed in June 2018 and liquidated in September 2020, and XAN 2019-RSO7, a $687.2 million securitization that closed in April 2019. C3AM received servicing fees, payable monthly on an asset-by-asset basis. C3AM served as special servicer for C40, XAN 2018-RSO6 and XAN 2019-RSO7, under which it received a base special servicing fee. On December 31, 2019, C3AM was sold by C-III to an unaffiliated third party. As such, C3AM ceased being a related party under common control effective January 1, 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 non-employee director of the Company is an executive at, and a director of, Resource Real Estate Opportunity REIT. During the year ended December 31, 2020, the Company incurred $45,000 of expenses in connection with these agreements. The Company had no payables to Resource Real Estate Opportunity REIT of approximately at December 31, 2020. |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | NOTE 18 - FAIR VALUE OF FINANCIAL INSTRUMENTS The following table presents the Company’s financial instruments carried at fair value on a recurring basis based upon the fair value hierarchy (in thousands): Level 1 Level 2 Level 3 Total At December 31, 2020: Assets: Investment securities available-for-sale $ — $ — $ 2,080 $ 2,080 Total assets at fair value $ — $ — $ 2,080 $ 2,080 At December 31, 2019: Assets: Investment securities available-for-sale $ — $ — $ 520,714 $ 520,714 Derivatives — 30 — 30 Total assets at fair value $ — $ 30 $ 520,714 $ 520,744 Liabilities: Derivatives $ — $ 4,558 $ — $ 4,558 Total liabilities at fair value $ — $ 4,558 $ — $ 4,558 In accordance with guidance on fair value measurements and disclosures, the Company is not required to disclose quantitative information with respect to unobservable inputs contained in fair value measurements that are not developed by the Company. As a consequence, the Company has not disclosed such information associated with fair values obtained for investment securities available-for-sale and derivatives from third-party pricing sources. The following table presents additional information about the Company’s assets that are measured at fair value on a recurring basis for which the Company has utilized Level 3 inputs (in thousands): CMBS Balance, January 1, 2020 $ 520,714 Included in earnings (185,929 ) Purchases 24,600 Sales (111,846 ) Paydowns (4,733 ) Relinquishments (234,906 ) Included in other comprehensive loss (5,820 ) Balance, December 31, 2020 $ 2,080 The Company reported a certain asset held for sale and indemnification liability as financial instruments that are carried at fair value on a nonrecurring basis on its consolidated balance sheet at December 31, 2019. In the fourth quarter 2020, the asset held for sale was sold and the indemnification was relieved. The following table summarizes the Company’s financial instruments measured at fair value on a nonrecurring basis based upon the fair value hierarchy (in thousands): Level 1 Level 2 Level 3 Total At December 31, 2019: Assets: Asset held for sale $ — $ — $ 16,500 $ 16,500 Total assets at fair value $ — $ — $ 16,500 $ 16,500 Liabilities: Pearlmark Mezz indemnification $ — $ — $ 56 $ 56 Total liabilities at fair value $ — $ — $ 56 $ 56 In November 2020, the Company received a deed in lieu of foreclosure on one CRE whole loan. The Company engaged third-party sources to determine the value of the assets relating to the real estate owned (“REO”) property. The REO property was determined to have a total fair value of $39.8 million, comprised of building improvements, site improvements, furniture and fixtures, a below market lease intangible, a franchise intangible and value relating to the existing customer list. In November 2019, the Company foreclosed on its remaining legacy CRE loan held for sale, and obtained ownership of the underlying property, which remained classified as an asset held for sale on the consolidated balance sheets, recorded at the lower of cost or fair market value. An appraisal was received on the property in February 2020 and concluded its fair value, less estimated costs to sell, was $16.5 million, the effect of which was recorded as of December 31, 2019. At December 31, 2019 the asset held for sale had a fair value of $ . In the first quarter of 2020, the Company received a $13.5 million offer on the property, which was subsequently revoked. In the third quarter of 2020, the Company received a new offer of $11.0 million on the property. Net of approximately $715,000 of estimated costs to sell, the asset was valued at $10.3 million. The property was sold in December 2020 for proceeds of $10.3 million. During the years ended December 31, 2020, 2019 and 2018, the Company recorded losses of , , respectively, on the remaining CRE asset held for sale, which included protective advances to cover borrower operating losses of , and , respectively. During the year ended December 31, 2020, the loss was primarily attributable to fair value charges of $6.2 million in connection with the offers received on the property adjusted for the estimated costs to sell. 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 investment securities available-for-sale are reported in Note 9. The fair values of the Company’s derivative instruments are reported in Note 19. 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 4.10% to 9.75% and 4.45% to 7.96% at December 31, 2020 and 2019, respectively. The fair value of the Company’s mezzanine loan is measured by discounting the remaining contractual cash flows using the current interest rates at which similar instruments would be originated for the same remaining maturity. The fair values of the Company’s preferred equity investments are measured by discounting the instruments’ remaining contractual cash flows using current interest rates at which similar instruments would be originated for the same remaining maturities. The Company’s fixed-rate CRE loans are valued using third-party pricing sources. The Company’s loan receivable - related party is estimated using a discounted cash flow model. Senior notes in CRE securitizations are estimated using a discounted cash flow model with implied yields based on trades for similar securities. The fair values of the junior subordinated notes RCT I and RCT II are estimated by using a discounted cash flow model. The fair value of the convertible notes 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. The Company’s Senior Unsecured Notes due 2027 are estimated by using a discounted cash flow model. The fair value of the senior secured financing facility is measured by discounting the facility’s remaining contractual cash flows using the current interest rate at which a similar debt instrument would be issued for the same remaining maturity. The fair value of the senior secured financing facility is estimated using a discounted cash flow model that discounts the expected future cash flows at a rate of 5.75%. Warehouse financing facilities are variable rate debt instruments indexed to LIBOR that reset periodically and, as a result, their carrying value approximates their fair value, excluding deferred debt issuance costs. The fair values of the Company’s remaining financial instruments that are not reported at fair value on the consolidated balance sheets are reported in the following table (in thousands): Fair Value Measurements Carrying Value Fair Value Quoted Prices in Active Markets for Identical Assets of Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) At December 31, 2020: Assets: CRE whole loans held for investment $ 1,477,295 $ 1,513,822 $ — $ — $ 1,513,822 CRE mezzanine loan $ 4,399 $ 4,700 $ — $ — $ 4,700 CRE preferred equity investments $ 25,988 $ 27,650 $ — $ — $ 27,650 CRE whole loans, fixed-rate (1) $ 4,809 $ 4,809 $ — $ — $ 4,809 Loan receivable - related party $ 11,875 $ 10,184 $ — $ — $ 10,184 Liabilities: Senior notes in CRE securitizations $ 1,027,929 $ 1,030,854 $ — $ — $ 1,030,854 Junior subordinated notes $ 51,548 $ 31,955 $ — $ — $ 31,955 Convertible notes $ 137,252 $ 132,437 $ — $ — $ 132,437 Senior Unsecured Notes due 2027 $ 46,426 $ 58,910 $ — $ — $ 58,910 Senior secured financing facility $ 29,314 $ 33,360 $ — $ — $ 33,360 Warehouse financing facilities $ 12,258 $ 13,516 $ — $ — $ 13,516 At December 31, 2019: Assets: CRE whole loans held for investment $ 1,759,137 $ 1,768,322 $ — $ — $ 1,768,322 CRE mezzanine loan $ 4,700 $ 4,700 $ — $ — $ 4,700 CRE preferred equity investments $ 26,148 $ 26,237 $ — $ — $ 26,237 Asset held for sale $ 16,500 $ 16,500 $ — $ — $ 16,500 Liabilities: Senior notes in CRE securitizations $ 746,438 $ 754,023 $ — $ — $ 754,023 Junior subordinated notes $ 51,548 $ 25,831 $ — $ — $ 25,831 Convertible senior notes $ 154,786 $ 164,932 $ — $ — $ 164,932 Warehouse financing facilities and repurchase agreements $ 919,805 $ 922,519 $ — $ — $ 922,519 (1) Classified as other assets on the consolidated balance sheet. |
MARKET RISK AND DERIVATIVE INST
MARKET RISK AND DERIVATIVE INSTRUMENTS | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
MARKET RISK AND DERIVATIVE INSTRUMENTS | NOTE 19 - 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 uses derivatives as a risk management tool to mitigate the potential impact of certain market risks. The primary market risk managed by the Company through the use of derivative instruments is interest rate risk and market price risk. The Company may hold various derivatives in the ordinary course of business, including 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. A significant market risk to the Company is interest rate risk. Interest rates are highly sensitive to many factors, including governmental monetary and tax policies, domestic and international economic and political considerations and other factors beyond the Company ’ s control. Changes in the general level of interest rates can affect net interest income, which is the difference between the interest income earned on interest-earning assets and the interest expense incurred in connection with interest-bearing liabilities. Changes in the level of interest rates also can affect the value of the Company ’ s interest-earning assets and the Company ’ s ability to realize gains from the sale of these assets. A decline in the value of the Company ’ s interest-earning assets pledged as collateral for borrowings could result in the counterparties demanding additional collateral pledges or liquidation of some of the existing collateral to reduce borrowing levels. 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 seeks to mitigate the potential impact on net income of adverse fluctuations in interest rates incurred on its borrowings by entering into hedging agreements. The Company classifies its interest rate risk hedges 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 records changes in fair value of derivatives designated and effective as cash flow hedges in accumulated other comprehensive (loss) income, and records changes in fair value of derivatives designated and ineffective as cash flow hedges in earnings. Regulations promulgated under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 mandate that the Company clear certain new interest rate swap transactions through a central counterparty. Transactions that are centrally cleared result in the Company facing a clearing house, rather than a swap dealer, as counterparty. Central clearing requires the Company to post collateral in the form of initial and variation margin to satisfy potential future obligations. At December 31, 2020, the Company had no interest rate swap hedge contracts outstanding. At December 31, 2019, the Company had 19 interest rate swap contracts outstanding whereby the Company paid a weighted average fixed rate of 2.47% and received a variable rate equal to one-month LIBOR. The aggregate notional amount of these contracts was $90.2 million at December 31, 2019. The counterparty for the Company’s designated interest rate hedge contracts at December 31, 2019, was Wells Fargo. The Company had a master netting agreement with Wells Fargo at December 31, 2019, which was terminated during the year ended December 31, 2020. At December 31, 2019, the estimated fair value of the Company’s centrally-cleared interest rate swap hedge contracts in an asset position was $30,000. At December 31, 2019, the estimated fair value of the Company’s centrally cleared interest rate swap hedge contracts in a liability position was $4.6 million. The Company had aggregate unrealized losses of $4.0 million on the interest rate swap hedge contracts at December 31, 2019, which were recorded in accumulated other comprehensive income (loss) on the consolidated balance sheets. 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 the Company had a loss of $10.4 million recorded in accumulated other comprehensive (loss) income, which will be amortized into earnings over the remaining life of the debt. During the year ended the Company recorded amortization expense, reported in interest expense on the consolidated statements of operations, of $1.3 million. At December 31, 2020 and 2019, the Company had an unrealized gain of $438,000 and $530,000, respectively, attributable to two terminated interest rate swaps in accumulated other comprehensive income (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 $92,000 and $91,000 into earnings during the years ended December 31, 2020 and 2019, respectively. The Company’s origination of fixed-rate CRE whole loans exposes 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 may enter 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 are recorded in other income on the consolidated statements of operations. The following tables present the fair value of the Company’s derivative financial instruments at December 31, 2020 and 2019 on the Company’s consolidated balance sheets and the related effect of the derivative instruments on the consolidated statements of operations during the years ended December 31, 2020, 2019 and 2018: Fair Value of Derivative Instruments (in thousands) Liability Derivatives At December 31, 2020 Notional Amount Consolidated Balance Sheets Location Fair Value Interest rate swap contracts, hedging $ — Accumulated other comprehensive (loss) income $ (9,978 ) Asset Derivatives At December 31, 2019 Notional Amount Consolidated Balance Sheets Location Fair Value Interest rate swap contracts, hedging (1) $ 2,630 Derivatives, at fair value $ 30 Liability Derivatives Notional Amount Consolidated Balance Sheets Location Fair Value Interest rate swap contracts, hedging (1) $ 87,551 Derivatives, at fair value $ 4,558 Interest rate swap contracts, hedging $ 90,181 Accumulated other comprehensive (loss) income $ (3,999 ) (1) Interest rate swap contracts are accounted for as cash flow hedges. The Effect of Derivative Instruments on the Consolidated Statements of Operations (in thousands) Derivatives Year Ended December 31, 2020 Consolidated Statements of Operations Location Realized and Unrealized Gain (Loss) (1) Interest rate swap contracts Other (expense) income $ (10 ) Interest rate swap contracts, hedging Interest expense $ (1,562 ) Derivatives Year Ended December 31, 2019 Consolidated Statements of Operations Location Realized and Unrealized Gain (Loss) (1) Interest rate swap contracts, hedging Interest expense $ (138 ) Derivatives Year Ended December 31, 2018 Consolidated Statements of Operations Location Realized and Unrealized Gain (Loss) (1) Interest rate swap contracts, hedging Interest expense $ (169 ) (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, 2020 | |
Offsetting [Abstract] | |
OFFSETTING OF FINANCIAL ASSETS AND LIABILITIES | NOTE 20 - OFFSETTING OF FINANCIAL ASSETS AND LIABILITIES The following table presents a summary of the Company’s offsetting of derivative assets (in thousands): (i) Gross Amounts (ii) Gross Amounts Offset on the (iii) = (i) - (ii) Net Amounts of Assets Presented on the (iv) Gross Amounts Not Offset on the Consolidated Balance Sheets of Recognized Assets Consolidated Balance Sheets Consolidated Balance Sheets Financial Instruments Cash Collateral Pledged (v) = (iii) - (iv) Net Amount At December 31, 2019: Derivatives, at fair value $ 30 $ — $ 30 $ — $ — $ 30 The following table presents a summary of the Company’s offsetting of financial liabilities and derivative liabilities (in thousands, except amounts in footnotes): (i) Gross Amounts (ii) Gross Amounts Offset on the (iii) = (i) - (ii) Net Amounts of Liabilities Presented on the (iv) Gross Amounts Not Offset on the Consolidated Balance Sheets of Recognized Liabilities Consolidated Balance Sheets Consolidated Balance Sheets Financial Instruments (1) Cash Collateral Pledged (v) = (iii) - (iv) Net Amount At December 31, 2020: Warehouse financing facilities (2) $ 12,258 $ — $ 12,258 $ 12,258 $ — $ — Total $ 12,258 $ — $ 12,258 $ 12,258 $ — $ — At December 31, 2019: Derivatives, at fair value (3) $ 4,558 $ — $ 4,558 $ — $ 4,558 $ — Warehouse financing facilities and repurchase agreements (2) 919,805 — 919,805 915,041 4,764 — Total $ 924,363 $ — $ 924,363 $ 915,041 $ 9,322 $ — (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 $20.0 million and $1.2 billion at December 31, 2020 and 2019, respectively (3) The Company posted excess cash collateral All balances associated with repurchase agreements and derivatives are presented on a gross basis on the Company’s consolidated balance sheets. Certain of the Company’s repurchase agreements and derivative transactions 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, 2020 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 21 - INCOME TAXES The following table details the components of income taxes (in thousands): Years Ended December 31, 2020 2019 2018 Income tax (benefit) expense: Current: Federal $ — $ — $ — State — — (316 ) Total current — — (316 ) Deferred: Federal — — (27 ) State — — — Total deferred — — (27 ) Total $ — $ — $ (343 ) A reconciliation of the income tax expense based upon the statutory tax rate to the effective income tax rate was as follows for the years presented (in thousands): Years Ended December 31, 2020 2019 2018 Income tax (benefit) expense: Statutory tax $ (37 ) $ 6 $ (220 ) State and local taxes, net of federal benefit (3,353 ) 2,716 (1,007 ) Permanent adjustments — — (3 ) True-up of prior period tax expense — 816 (4 ) Valuation allowance 6,407 (5,402 ) 5,348 Discontinued operations adjustment — 863 (4,344 ) Other items (3,017 ) 1,001 (113 ) Total $ — $ — $ (343 ) The components of deferred tax assets and liabilities were as follows (in thousands): December 31, 2020 2019 Deferred tax assets related to: Federal, state and local loss carryforwards $ 13,764 $ 7,026 Accrued expenses — 27 Charitable contribution carryforward 58 16 Amortization of intangibles — 466 Unrealized gains — 662 Capital loss carryforward 327 2,736 Equity investments 7,369 — Total deferred tax assets 21,518 10,933 Valuation allowance (21,235 ) (9,883 ) Total deferred tax assets, net of valuation allowance $ 283 $ 1,050 Deferred tax liabilities related to: Investment in securities $ — $ (1,050 ) Amortization of intangibles (252 ) — Unrealized gains (31 ) — Total deferred tax liabilities $ (283 ) $ (1,050 ) Deferred tax assets, net $ — $ — At December 31, 2020 and 2019, the Company had $59.4 million and $58.5 million, respectively, of total gross federal and $1.6 million and $1.5 million, respectively, of total gross state and local net operating tax loss carryforwards. The Company had full valuation allowances on its total gross federal, state and local net operating tax loss carryforwards as of December 31, 2020 and 2019. At December 31, 2020 and 2019, the Company had $59.4 million and $28.0 million, respectively, of gross federal and $1.6 million and $1.5 million, respectively, of gross state and local net operating tax loss carryforwards (a collective deferred tax asset of $13.8 million and $7.0 million, respectively) reported in other assets in the Company’s consolidated balance sheets. The Company also generated a gross capital loss carryforward of $969,000 in 2020 (tax effected expense of $327,000). 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, 2020 and 2019. Therefore, a gross valuation allowance of $62.9 million and $32.9 million (tax effected expense of $21.2 million and $9.9 million) has been recorded against the deferred tax asset at December 31, 2020 and 2019, 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 2018, and is subject to examination by state and local jurisdictions for calendar years including and subsequent to 2016. |
QUARTERLY RESULTS
QUARTERLY RESULTS | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
QUARTERLY RESULTS | NOTE 22 - 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, 2020: Interest income $ 33,290 $ 27,243 $ 24,638 $ 23,072 Interest expense 18,394 12,547 13,033 14,034 Net interest income $ 14,896 $ 14,696 $ 11,605 $ 9,038 Net (loss) income from continuing operations $ (196,521 ) $ (33,400 ) $ 8,159 $ 24,049 Net loss from discontinued operations — — — — Net income (196,521 ) (33,400 ) 8,159 24,049 Net income allocated to preferred shares (2,588 ) (2,587 ) (2,588 ) (2,587 ) Net (loss) income allocable to common shares $ (199,109 ) $ (35,987 ) $ 5,571 $ 21,462 Net (loss) income per common share from continuing operations - basic $ (18.89 ) $ (3.41 ) $ 0.51 $ 1.96 Net loss per common share from discontinued operations - basic — — — — Total net (loss) income per common share - basic $ (18.89 ) $ (3.41 ) $ 0.51 $ 1.96 Net (loss) income per common share from continuing operations - diluted $ (18.89 ) $ (3.41 ) $ 0.51 $ 1.95 Net loss per common share from discontinued operations - diluted — — — — Total net (loss) income per common share - diluted $ (18.89 ) $ (3.41 ) $ 0.51 $ 1.95 March 31 June 30 September 30 December 31 (unaudited) (unaudited) (unaudited) (unaudited) (in thousands, except per share data) Year ended December 31, 2019: Interest income $ 33,932 $ 37,138 $ 39,292 $ 34,524 Interest expense 19,395 21,581 22,712 20,149 Net interest income $ 14,537 $ 15,557 $ 16,580 $ 14,375 Net income from continuing operations $ 8,170 $ 9,003 $ 12,620 $ 6,424 Net loss from discontinued operations (37 ) (112 ) (63 ) (39 ) Net income 8,133 8,891 12,557 6,385 Net income allocated to preferred shares (2,588 ) (2,587 ) (2,588 ) (2,587 ) Net income allocable to common shares $ 5,545 $ 6,304 $ 9,969 $ 3,798 Net income per common share from continuing operations - basic $ 0.53 $ 0.61 $ 0.96 $ 0.37 Net loss per common share from discontinued operations - basic — (0.01 ) (0.01 ) — Total net income per common share - basic $ 0.53 $ 0.60 $ 0.95 $ 0.37 Net income per common share from continuing operations - diluted $ 0.53 $ 0.61 $ 0.95 $ 0.36 Net loss per common share from discontinued operations - diluted — (0.01 ) (0.01 ) — Total net income per common share - diluted $ 0.53 $ 0.60 $ 0.94 $ 0.36 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 23 - 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, 2020. 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, 2020 and 2019, no such litigation demand was outstanding. Reserves for such potential litigation demands are included in the reserve for mortgage repurchases and indemnifications that totaled $1.5 million and $1.7 million at December 31, 2020 and 2019, respectively. The reserves for mortgage repurchases and indemnifications are included in liabilities held for sale on the consolidated balance sheets. Settled and Dismissed Litigation Matters In April 2018, the Company funded $2.0 million into escrow in connection with the proposed settlement of outstanding litigation, which was settled in August 2018. The Company did not have any general litigation reserve at December 31, 2020 or 2019. The Company previously disclosed a securities litigation against the Company and certain of its current and former officers and directors titled Levin v. Resource Capital Corp. The Company previously disclosed two consolidated shareholder derivative actions filed in the Court that purported to assert claims on behalf of the Company similar to the claims in the New York State Actions (defined below) (collectively, the “Federal Actions”): (a) by shareholders who declined to make a demand on the Board prior to filing suit (the “Federal Demand Futile Actions”), which comprised a suit filed in January 2017 (the “Greenberg Action”), and another suit filed in January 2017 (the “DeCaro Action”) and (b) by shareholders who served demands on the Board to bring litigation and allege that their demands were wrongfully refused (the “Federal Demand Refused Actions”), which comprised a suit filed in February 2017 (the “McKinney Action”), a suit filed in March 2017 (the “Sherek/Speigel Action”) and a suit filed in April 2017 (the “Sebenoler Action”). In January 2019, the parties to the Federal Actions executed a stipulation and agreement of settlement (the “Federal Actions Settlement Agreement”), which received final approval from the Court on May 17, 2019. Under the Federal Actions Settlement Agreement, the Company agreed to implement certain corporate governance changes and paid $550,000 in plaintiffs’ attorneys’ fees, funded by the Company’s insurers. In exchange for the settlement consideration, the defendants were released from liability for certain claims, including all claims asserted in the Federal Actions. Among other terms and conditions, the Federal Actions Settlement Agreement provided that the defendants deny any and all allegations of wrongdoing and maintained that they have acted lawfully and in accordance with their fiduciary duties at all times. The Company previously disclosed six separate, additional shareholder derivative suits filed in the Supreme Court of New York purporting to assert claims on behalf of the Company (the “New York State Actions”) that were filed on the following dates: December 2015 (the “Reaves Action”); February 2017 (the “Caito Action”); March 2017 (the “Simpson Action”); March 2017 (the “Heckel Action”); May 2017 (the “Schwartz Action”); and August 2017 (the “Greff Action”). Plaintiffs in the Schwartz Action and Greff Action made demands on the Company’s Board before filing suit, but plaintiffs in the Reaves Action, Caito Action, Simpson Action and Heckel Action did not. All of the shareholder derivative suits were substantially similar and alleged that certain of the Company’s current and former officers and directors breached their fiduciary duties, wasted corporate assets and/or were unjustly enriched. Certain complaints asserted additional claims against the Manager and Resource America for unjust enrichment based on allegations that the Manager received excessive management fees from the Company. In June 2019 and July 2019, the Schwartz Action and Greff Action, respectively, were dismissed. In October 2019, the four remaining New York State Actions were dismissed. The Company previously disclosed another shareholder derivative action filed in the United States District Court for the District of Maryland against certain of the Company’s former officers and directors and the Manager (the “Hafkey Action”). The complaint asserted a breach of fiduciary duty claim that was substantially similar to the claims at issue in the Federal Actions. In May 2019, the plaintiff in the Hafkey Action voluntarily dismissed his suit in light of the settlement and dismissal of the Federal Actions. The Company previously disclosed another shareholder derivative action filed in the Maryland Circuit Court against certain of the Company’s current and former officers and directors, as well as the Manager and Resource America (the “Canoles Action”). The complaint (as amended) in the Canoles Action asserted a variety of claims, including claims for breach of fiduciary duty, unjust enrichment and corporate waste, which were based on allegations substantially similar to those at issue in the Federal Demand Futile Actions. In July 2019, the plaintiff in the Canoles Action voluntarily dismissed his suit in light of the settlement and dismissal of the Federal Actions. PCM was the subject of a lawsuit brought by a purchaser of residential mortgage loans alleging breaches of representations and warranties made on loans sold to the purchaser. The asserted repurchase claims related to loans sold to the purchaser that were subsequently sold by the purchaser to either the Federal National Mortgage Association or Federal Home Loan Mortgage Corporation and loans sold to the purchaser that were subsequently securitized and sold as residential mortgage-backed securities (“RMBS”) by the purchaser to RMBS investors. This matter was settled and dismissed in January 2018. Impact of COVID-19 As discussed in Note 2, the impact of the COVID-19 pandemic in the U.S. and globally has, and will continue to, adversely impact the Company, its borrowers and their tenants, the properties securing its investments and the economy as a whole. The magnitude and duration of the COVID-19 pandemic could be significant and will depend on future developments, which are uncertain and cannot be predicted, including new information that may emerge about the severity of the pandemic, the extension of quarantines and restrictions on travel, the discovery of successful treatments and the ensuing reactions by consumers, companies, governmental entities and global markets. The Company had no contingent liabilities at December 31, 2020 recorded in connection with the COVID-19 pandemic, however the prolonged duration and impact of the COVID-19 pandemic has had, and may continue to have, a long-term and material impact on its results of operations, financial condition and cash flows. 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, 2020 and 2019, 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. 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 $67.2 million and $98.0 million in unfunded loan commitments at December 31, 2020 and 2019, respectively. Preferred equity investments had $2.5 million and $3.0 million in unfunded investment commitments at December 31, 2020 and 2019, respectively. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2020 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 24 - 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 11 and Note 12, 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, 2020 | |
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, 2020 $ 1,460 $ 3,032 $ 30,815 $ (997 ) $ 34,310 Year Ended December 31, 2019 $ 1,401 $ — $ 59 $ — $ 1,460 Year Ended December 31, 2018 $ 5,328 $ — $ (1,595 ) $ (2,332 ) $ 1,401 |
Schedule III Real Estate and Ac
Schedule III Real Estate and Accumulated Depreciation | 12 Months Ended |
Dec. 31, 2020 | |
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) Gross Amount of Which Carried at Close of Period Encumbrances Initial Cost to Company - Buildings and Improvements 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 (1) N/A $ 30,944 $ 30,944 $ 30,944 $ (112 ) 2000 November 16, 2020 35 years (1) 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 furniture and fixtures, which comprise the investment in the property. (2) The property was acquired through a deed in lieu of foreclosure. The following table rolls forward our gross investment in real estate and the related accumulated depreciation (in thousands): Year Ended December 31, 2020 Real Estate: Balance at beginning of period $ — Additions during period: Acquisitions through deed in lieu of foreclosure 30,944 Improvements, etc. — Balance at close of period $ 30,944 Accumulated Depreciation: Balance at beginning of period $ — Additions during period: Depreciation expense (112 ) Balance at close of period $ (112 ) |
Schedule IV Mortgage Loans on R
Schedule IV Mortgage Loans on Real Estate | 12 Months Ended |
Dec. 31, 2020 | |
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 (in thousands, except amount in footnotes) Type of Loan/ Borrower Description / Location Interest Payment Rates Maturity Date (1) Periodic Payment Terms (2) Prior Liens Face Amount of Loans Net Carrying Amount of Loans (3) Principal Amount of Loans Subject to Delinquent Principal or Interest CRE whole loans: CRE whole loans in excess of 3% of the carrying amount of total loans Borrower A Multifamily/Atlanta, GA LIBOR + 2.90% FLOOR 2.50% 2022 I/O — $ 51,778 $ 51,612 $ — Borrower B Hotel/Phoenix, AZ LIBOR + 3.75% FLOOR 1.92% 2021 I/O — 56,470 56,332 — CRE whole loans less than 3% of the carrying amount of total loans CRE whole loan (4) Multifamily/ Various LIBOR + 2.70% - 4.70% FLOOR 0.50% - 2.50% 2021-2024 I/O — 790,722 787,166 — CRE whole loan (5) Office/ Various LIBOR + 2.82% - 4.35% FLOOR 0.25% - 2.50% 2021-2023 I/O — 221,542 219,013 19,900 CRE whole loan (6) Retail/ Various LIBOR + 3.25% - 5.00% FLOOR 1.00% - 2.15% 2021 I/O — 76,623 76,386 11,516 CRE whole loan Hotel/ Various LIBOR + 3.90% - 9.00% FLOOR 0.75% - 2.45% 2021-2024 I/O — 139,026 138,371 17,700 CRE whole loan Self-Storage/ Various LIBOR + 3.50% - 4.00% FLOOR 1.55% - 2.50% 2021-2023 I/O — 122,465 121,921 — CRE whole loan Other/ Various LIBOR + 3.50% - 6.50% FLOOR 1.25% - 2.50% 2021-2023 I/O — 57,096 56,877 — Total CRE whole loans 1,515,722 1,507,678 49,116 Mezzanine loans: Mezzanine loans less than 3% of the carrying amount of total loans (7) 42,772 4,700 38,072 Total mezzanine loans 42,772 4,700 38,072 Preferred equity: Preferred Equity less than 3% of the carrying amount of total loans 27,650 27,714 — Total preferred equity 27,650 27,714 — General allowance for loan loss (32,410 ) Total loans $ 1,586,144 $ 1,507,682 $ 87,188 (1) Maturity dates exclude extension options that may be available to borrower. (2) I/O = interest only (3) The net carrying amount of loans includes an individually determined allowance for credit losses of $1.9 million and a general allowance for credit losses of $32.4 million at December 31, 2020. (4) Includes one loan in forbearance at December 31, 2020. (5) Includes one interest-only office loan with a face amount of $19.9 million that had an individually determined reserve of $1.9 million for which foreclosure was deemed probable at December 31, 2020. (6) Includes one loan in forbearance at December 31, 2020. (7) Includes one mezzanine loan with a par of $38.1 million and a carrying value of zero in default at December 31, 2020. The following table reconciles our CRE loans carrying amounts for the periods indicated (in thousands): Years Ended December 31, 2020 2019 2018 Balance at beginning of year $ 1,789,985 $ 1,568,967 $ 1,346,663 Additions during the period: New loans originated or acquired 263,081 874,936 780,556 Funding of existing loan commitments 34,981 43,203 51,365 Amortization of loan origination fees and costs, net 5,555 6,053 5,537 Protective advances on legacy CRE loans held for sale — 645 1,724 (Provision for) recovery of credit losses, net (30,815 ) (58 ) 1,595 Charge off of realized loss on loan sale 997 — — Settled loans held for sale fair value adjustments — — 1,000 Capitalized interest and loan acquisition costs 1,126 3,418 518 Deductions during the period: Payoff and paydown of loans (493,968 ) (682,846 ) (592,438 ) Deed in lieu of foreclosure (37,956 ) (18,515 ) — Cost of loans sold (18,451 ) — — Loans held for sale payoffs — — (12,000 ) Capitalized origination fees (3,821 ) (6,687 ) (8,329 ) Cumulative effect of accounting change for adoption of credit loss guidance (3,032 ) — — Loans held for sale fair value adjustments — 869 (7,224 ) Balance at end of year $ 1,507,682 $ 1,789,985 $ 1,568,967 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
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 the 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 expected credit losses and the disclosure of contingent liabilities. In December 2019, a novel strain of coronavirus (“COVID-19”) was identified. The resulting global proliferation of the virus led the World Health Organization to designate COVID-19 as a pandemic and numerous countries, including the U.S., to declare national emergencies. Many countries have responded to the outbreak by instituting quarantines and restrictions on travel, which have resulted in the closure or remote operation of non-essential businesses. Such actions have produced material and previously unforeseeable shocks to global markets, disruptions to global supply chains and adversity to many industries and economies as whole. While certain countries around the world have eased restrictions and financial markets have stabilized to some degree, the pandemic continues to plague the overall U.S. economy and cause uncertainty surrounding the ultimate impact on the global economy generally, and the CRE business in particular, that make estimates and assumptions as of December 31, 2020 inherently less certain than they would be absent the current and potential impacts of COVID-19. The Company believes the estimates and assumptions underlying the consolidated financial statements are reasonable and supportable based on the information available at December 31, 2020. Actual results may ultimately differ from those estimates. |
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, 2020 and 2019, approximately $27.3 million and $77.6 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 primarily for the Company’s CRE debt securitizations and derivative instruments as well as cash held in 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, 2020 2019 Cash and cash equivalents $ 29,355 $ 79,958 Restricted cash 38,386 14,476 Total cash, cash equivalents and restricted cash shown on the Company’s consolidated statements of cash flows $ 67,741 $ 94,434 |
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 may be accounted for under the equity method or the cost method. Under the equity method, capital contributions, distributions, profits and losses of the entities are allocated in accordance with the terms of the entities’ operating agreements. Such allocations may differ from the stated percentage interests, if any, as a result of preferred returns and allocation formulas as described in the entities’ operating agreements. For non-controlling investments in unconsolidated entities qualifying for equity method treatment with substantive profit-sharing arrangements, the hypothetical liquidation at book value (“HLBV”) method may be used for recognizing earnings. Under the HLBV method, earnings are calculated and recognized based on the change in how the unconsolidated entity would allocate and distribute its cash if it were to liquidate the carrying value of its assets and liabilities on the beginning and end dates of the earnings period; excluding contributions made or distributions received. The Company may account for an investment that does not qualify for equity method accounting using 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. |
Investment Securities | Investment Securities The Company classifies its investment securities portfolio as trading or available-for-sale. The Company, from time to time, may sell any of its investments due to changes in market conditions or in accordance with its investment strategy. The Company reports its investment securities available-for-sale and historically has reported its investment securities, trading at fair value. To determine fair value, the Company uses an independent third-party valuation firm utilizing data available in the market as well as appropriate prepayment, default and recovery rates. The Company evaluates the reasonableness of the valuation it receives by using a dealer quote, bid, or internal model. If there is a material difference between the value indicated by the third-party valuation firm and the dealer quote, bid or internal model, the Company will evaluate the difference, which could result in an updated valuation from the third-party or a revised dealer quote. 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. Historically, any changes in fair value of the Company’s investment securities, trading were recorded on the Company’s consolidated statements of operations as net realized and unrealized gain (loss) on investment securities, trading. Any changes in fair value of the Company’s investment securities available-for-sale are recorded on the Company’s consolidated balance sheets as a component of accumulated other comprehensive income (loss) in stockholders’ equity. On a quarterly basis, the Company evaluates available-for-sale securities with fair values below the ir amortized cost bases to determine the estimate of expected credit losses. Evidence of the need for an allowance for credit losses will be based on consideration of several factors, including (i) if the Company intends to sell the security, (ii) if it is more likely than not that the Company will be required to sell the security before recovering its cost, or (iii) whether a portion of the unrealized loss is a result of credit losses or other market factors. A credit loss will have occurred if the present value of cash flows expected to be collected from the debt security is less than the amortized cost basis. If the Company intends to sell a debt security with a fair value below the amortized cost basis or it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis less any current period credit loss, a write-off is recognized in earnings through a charge to the amortized cost of the security and equal to the entire difference between fair value and amortized cost. If a credit loss exists, but the Company does not intend nor is it more likely than not that it will be required to sell before recovery, the loss will be separated into (i) the estimated amount relating to the credit loss and (ii) the amount relating to all other factors. Only the estimated credit loss amount is recognized in earnings through an increase to the allowance for credit losses, with the remainder of the loss recognized in other comprehensive income. If the Company uses a discounted cash flow approach to estimate expected credit losses, changes in the present value attributable to the passage of time are recorded in the provision for credit losses. Estimating cash flows and determining whether there are credit losses require management to exercise judgment and to make significant assumptions, including, but not limited to, assumptions regarding estimated prepayments, loss assumptions and assumptions regarding changes in interest rates. As a result, actual losses, and the timing of income recognized on these securities, could differ from reported amounts. Investment security transactions are recorded on the trade date. Realized gains and losses on investment securities are determined on the specific identification method. |
Investment Security Interest Income Recognition | Investment Security Interest Income Recognition Interest income on the Company’s mortgage-backed securities (“MBS”) and other asset-backed securities (“ABS”) is accrued using the effective yield method based on the actual coupon rate and the outstanding principal amount of the underlying mortgages or other assets. Premiums and discounts are amortized or accreted into interest income over the expected lives of the securities also using the effective yield method, adjusted for the effects of estimated prepayments. For an investment purchased at par, the effective yield is the contractual interest rate on the investment. If the investment is purchased at a discount or at a premium, the effective yield is computed based on the contractual interest rate increased for the accretion of a purchase discount or decreased for the amortization of a purchase premium. The effective yield method requires the Company to make estimates of future prepayment rates for its investments that can be contractually prepaid before their contractual maturity date so that the purchase discount can be accreted, or the purchase premium can be amortized, over the estimated remaining life of the investment. The prepayment estimates that the Company uses directly impact the estimated remaining lives of its investments. Actual prepayment estimates are reviewed at each quarter end or more frequently if the Company becomes aware of any material information that would lead it to believe that an adjustment is necessary. For MBS and other ABS that are not of high credit quality or that can be prepaid in such a way that the Company would not recover substantially all of its initial investment, changes in the original or most recent cash flow projections may result in a prospective change in interest income recognized. For MBS and other ABS that are of high credit quality, changes in the original or most recent cash flow projections may result in an immediate cumulative adjustment in interest income recognized. The Company records interest receivable on its available-for-sale debt securities 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 balance is deemed uncollectible, then the Company writes off the balance of the interest receivable through a reversal of interest income. |
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 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 balance is deemed uncollectible, then the Company writes off the balance of the interest receivable through a reversal of interest income. |
Preferred Equity Investment | Preferred Equity Investment Preferred equity investments, which are subordinate to any loans but senior to common equity, depending on the investment’s characteristics, may be accounted for as real estate, joint ventures or as mortgage loans. The Company’s preferred equity investments are accounted for as CRE loans held for investment, are carried at cost, net of unamortized loan fees and origination costs, and are included within CRE loans on the Company’s consolidated balance sheets. The Company accretes or amortizes any discounts or premiums over the life of the related loan utilizing the effective interest method. Interest and fees are recognized as income subject to recoverability, which is 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 judgements, including: (i) the selection of a reasonable and supportable forecast period, (ii) the selection 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 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 less risk to 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. The Company considered a loan to be impaired if at least one of two conditions exists. The first condition was if, based on the Company’s evaluation as part of the loan risk rating process, management believed that a loss event had occurred that made it probable that the Company would be unable to collect all amounts due according to the contractual terms of the loan agreement. The second condition was that the loan was deemed to be a TDR. These TDRs may not have had an associated specific credit loss allowance if the principal and interest amount was considered recoverable based on market conditions, appraisals of the underlying collateral, expected collateral performance and/or guarantees made by the borrowers. When a loan was impaired under either of these two conditions, the allowance for credit losses was increased by the amount of the excess of the amortized cost basis of the loan over its fair value. When a loan, or a portion thereof, was considered uncollectible and pursuit of collection was not warranted, the Company recorded a charge-off or write-down of the loan against the allowance for credit losses. |
Investment in Real Estate | Investment in Real Estate 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. Investments in real estate are carried net of accumulated depreciation. The Company depreciates real property and furniture, fixtures, and equipment using the straight-line method over the estimated useful lives of the assets. The Company amortizes any acquired intangible assets, including but not limited to franchise agreement and customer list 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. 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 years Site Improvements 10 years FF&E 5 years Right of use assets 66.5 years Intangible assets 3 years to 16.5 years Lease liabilities 66.5 years |
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. Legacy CRE loans included as assets held for sale were measured at the lower of cost or fair value on the date the legacy CRE loans were transferred to assets held for sale. Any specific loan loss reserves for legacy CRE loans transferred to assets held for sale were measured and charged off on the date of transfer, establishing a new cost basis for the loans. 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 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 of approximately $62.9 million (tax effected $21.2 million) at December 31, 2020 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. Effective January 1, 2019, in accordance with updated guidance under GAAP, the fair value of all unvested issuances of restricted stock and options is not remeasured after the initial grant date. Previously, the Company adjusted unvested issuances of restricted stock and options to the Manager and to non-employees quarterly to reflect changes in fair value. |
Net Income (Loss) Per Share | Net Income (Loss) Per Share The Company calculates basic income per share by dividing net income for the period by the weighted average number of shares of its common stock, including vested restricted stock and participating securities, outstanding for that period. Diluted income per share takes into account the effect of dilutive investments, such as stock options, unvested restricted stock and convertible notes, but uses the treasury stock method or average share price for the period in determining the number of incremental shares that are to be added to the weighted average number of shares outstanding. |
Derivative Instruments | Derivative Instruments The Company’s policies permit it to enter into derivative contracts, including interest rate swaps and interest rate caps, to add stability to its interest expense and to manage its exposure to interest rate movements or other identified risks. The Company has designated these transactions as cash flow hedges. The contracts or hedge instruments are evaluated at inception and at subsequent consolidated balance sheet dates to determine if they qualify for hedge accounting, which requires that the Company recognize all derivatives on the consolidated balance sheets at fair value. The Company records changes in the estimated fair value of the derivative in other comprehensive income to the extent that it is effective. Any ineffective portion of a derivative’s change in fair value is immediately recognized in earnings. Derivative assets and liabilities, are reported at fair value, and are valued by a third-party pricing agent using an income approach with models that use, as their primary inputs, readily observable market parameters. This valuation process considers factors including interest rate yield curves, time value, credit factors and volatility factors. Although the Company has determined that the majority of the inputs used to value its derivatives fall within Level 2 of the fair value hierarchy (See the discussion of the Fair Value Measurements policy that follows in the next section), the credit valuation adjustments associated with its derivatives utilize Level 3 inputs, such as estimates of current credit spreads, to evaluate the likelihood of default by the Company and its counterparties. The Company assesses the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions and, if material, categorizes those derivatives within Level 3 of the fair value hierarchy. |
Fair Value Measurement | 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. |
Recent Accounting Standards | Recent Accounting Standards Accounting Standards Adopted in In June 2016, the FASB issued guidance that changed how credit losses for most financial assets and certain other instruments that are measured at fair value through net income are determined. The new guidance replaced the incurred loss approach with a CECL model for instruments measured at amortized cost. For available-for-sale debt securities, the guidance requires recording allowances rather than reducing the carrying amount, as the Company was previously under the other-than-temporary impairment model. It also simplifies the accounting model for debt securities and loans with evidence of credit quality deterioration. On January 1, 2020, the Company adopted the above-mentioned accounting guidance and recorded an initial CECL allowance of approximately $4.5 million, of which $3.0 million was recorded as a charge to retained earnings on such date. The estimated CECL reserve represented 0.25% of the aggregate outstanding principal balance of the Company’s $1.8 billion commercial loan portfolio at December 31, 2019. During the year ended December 31, 2020, the Company recorded an additional CECL reserve of $30.8 million for a total CECL reserve of $34.3 million, or 2.21% of the aggregate outstanding principal balance of the Company’s $1.5 billion commercial loan portfolio at December 31, 2020. The Company’s updated accounting policies in connection with this guidance are referenced above in the “Investment Securities,” “Investment Security Interest Income Recognition,” “Loans,” “Loan Interest Income Recognition,” and “Allowance for Credit Losses” sections. See Note 6 for additional disclosures in connection with the updated guidance. In August 2018, the FASB issued guidance to modify the fair value measurement disclosure requirements, including: disclosures on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, the policy for timing of transfers between levels and the narrative description of measurement uncertainty. Adoption did not have a material impact on the Company’s consolidated financial statements. Accounting Standards to be Adopted in Future Periods In March 2020, the FASB issued guidance that provides optional expedients and exceptions to GAAP requirements for modifications on debt instruments, leases, derivatives and other contracts, related to the expected market transition from the London Interbank Offered Rate (“LIBOR”), and certain other floating-rate benchmark indices to alternative reference rates. The guidance generally considers contract modifications related to reference rate reform to be an event that does not require contract remeasurement at the modification date nor a reassessment of a previous accounting determination. The guidance is optional and may be elected over time, through December 31, 2022, as reference rate reform activities occur. The Company is in the process of evaluating the impact of this guidance. 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, as long as no other features require bifurcation and recognition as derivatives and the convertible instrument are 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. The guidance is effective for larger public business entities’ annual periods, and interim periods therein, beginning after December 15, 2021 and for smaller reporting entities after December 15, 2023. Early application is permitted for fiscal years beginning after December 15, 2020. The Company is in the process of evaluating the impact of this guidance. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 2019 Cash and cash equivalents $ 29,355 $ 79,958 Restricted cash 38,386 14,476 Total cash, cash equivalents and restricted cash shown on the Company’s consolidated statements of cash flows $ 67,741 $ 94,434 |
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 years Site Improvements 10 years FF&E 5 years Right of use assets 66.5 years Intangible assets 3 years to 16.5 years Lease liabilities 66.5 years |
VARIABLE INTEREST ENTITIES (Tab
VARIABLE INTEREST ENTITIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 (in thousands): CRE Securitizations Other Total ASSETS Restricted cash $ 37,846 $ 507 $ 38,353 Accrued interest receivable 5,398 — 5,398 CRE loans, pledged as collateral (1) 1,231,184 — 1,231,184 Principal paydowns receivable 4,250 — 4,250 Other assets 114 — 114 Total assets (2) $ 1,278,792 $ 507 $ 1,279,299 LIABILITIES Accounts payable and other liabilities $ 136 $ — $ 136 Accrued interest payable 806 — 806 Borrowings 1,027,929 — 1,027,929 Total liabilities $ 1,028,871 $ — $ 1,028,871 (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, 2020 (in thousands): Unsecured Junior Subordinated Debentures C40 Prospect Hackensack Santa Clarita Total Maximum Exposure to Loss ASSETS Accrued interest receivable $ 6 $ 56 $ — $ 43 $ 105 $ — CRE loans (1) — — 21,262 6,452 27,714 $ 27,714 Investment securities available-for-sale (2) — 2,080 — — 2,080 $ 2,080 Investments in unconsolidated entities 1,548 — — — 1,548 $ 1,548 Total assets 1,554 2,136 21,262 6,495 31,447 LIABILITIES Accrued interest payable 188 — — — 188 N/A Borrowings 51,548 — — — 51,548 N/A Total liabilities 51,736 — — — 51,736 N/A Net (liability) asset $ (50,182 ) $ 2,136 $ 21,262 $ 6,495 $ (20,289 ) N/A (1) The carrying values exclude the allowance for credit losses. (2) The Company’s investment in C40 is carried at fair value and its maximum exposure to loss is the amortized cost of the investment. |
SUPPLEMENTAL CASH FLOW INFORM_2
SUPPLEMENTAL CASH FLOW INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of other significant noncash transactions | The following table summarizes the Company’s supplemental disclosure of cash flow information (in thousands): Years Ended December 31, 2020 2019 2018 Non-cash continuing 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 $ — $ — Non-cash continuing investing activities include the following: Proceeds from the relinquishment of investment securities available-for-sale $ 369,873 $ — $ — Proceeds from the receipt of deed in lieu of foreclosure on loan $ 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 continuing financing activities include the following: Repayment of repurchase agreements from the relinquishment of investment securities available-for-sale $ (369,873 ) $ — $ — Distributions on common stock accrued but not paid $ — $ 8,767 $ 5,540 Distributions on preferred stock accrued but not paid $ 1,725 $ 1,725 $ 1,725 |
RESTRICTED CASH (Tables)
RESTRICTED CASH (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Cash And Cash Equivalents [Abstract] | |
Schedule of restricted cash | The following table summarizes the Company’s restricted cash (in thousands): December 31, 2020 2019 Restricted cash: Cash held by consolidated CRE securitizations, CDOs and CLOs $ 38,353 $ 532 Restricted cash pledged with minimum reserve balance requirements 33 22 Margin posted on interest rate swaps and warehouse financing facilities — 13,922 Total $ 38,386 $ 14,476 |
LOANS (Tables)
LOANS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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 (9) Maturity Dates (2)(3)(4) At December 31, 2020: CRE loans held for investment: Whole loans (5)(6) 95 $ 1,515,722 $ (6,144 ) $ 1,509,578 $ (32,283 ) $ 1,477,295 1M LIBOR plus 2.70% to 1M LIBOR plus 9.00% January 2021 to January 2024 Mezzanine loan (5) 1 4,700 — 4,700 (301 ) 4,399 10.00% June 2028 Preferred equity investments (6)(7)(8) 2 27,650 64 27,714 (1,726 ) 25,988 11.00% to 11.50% June 2022 to April 2023 Total CRE loans held for investment $ 1,548,072 $ (6,080 ) $ 1,541,992 $ (34,310 ) $ 1,507,682 At December 31, 2019: CRE loans held for investment: Whole loans (5)(6) 112 $ 1,768,322 $ (7,725 ) $ 1,760,597 $ (1,460 ) $ 1,759,137 1M LIBOR plus 2.70% to 1M LIBOR plus 6.25% January 2020 to October 2023 Mezzanine loan 1 4,700 — 4,700 — 4,700 10.00% June 2028 Preferred equity investments (6)(7)(8) 2 26,237 (89 ) 26,148 — 26,148 11.00% to 11.50% June 2022 to April 2023 Total CRE loans held for investment $ 1,799,259 $ (7,814 ) $ 1,791,445 $ (1,460 ) $ 1,789,985 (1) Amounts include unamortized loan origination fees of $5.7 million and $9.1 million and deferred amendment fees of $495,000 and $72,000 at December 31, 2020 and 2019, respectively. Additionally, the amounts include unamortized loan acquisition costs of $118,000 and $1.3 million at December 31, 2020 and 2019, respectively. (2) Maturity dates exclude contractual extension options, subject to the satisfaction of certain terms, that may be available to the borrowers. (3) Maturity (4) Maturity dates (5) Substantially all loans are pledged as collateral under various borrowings at December 31, 2020 and 2019. (6) Whole loans (7) The interest rate (8) Beginning in April 2023, the Company has the right to unilaterally force the sale of the Prospect Hackensack’s underlying property. Beginning in June 2022, the Company has the right to unilaterally force the sale of Santa Clarita’s underlying property. (9) The Company’s floating-rate CRE loan portfolio of $1.5 billion had a weighted-average one-month LIBOR floor of 1.88% at December 31, 2020 |
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 2021 2022 2023 and Thereafter Total At December 31, 2020: Whole loans (1) $ 599,053 $ 540,639 $ 330,143 $ 1,469,835 Mezzanine loan — — 4,700 4,700 Preferred equity investment — 6,452 21,262 27,714 Total CRE loans (2) $ 599,053 $ 547,091 $ 356,105 $ 1,502,249 Description 2020 2021 2022 and Thereafter Total At December 31, 2019: Whole loans (1) $ 319,868 $ 737,478 $ 691,747 $ 1,749,093 Mezzanine loan — — 4,700 4,700 Preferred equity investment — — 26,148 26,148 Total CRE loans (2) $ 319,868 $ 737,478 $ 722,595 $ 1,779,941 (1) Maturity dates exclude three whole loans, with amortized costs of $39.7 million, and one whole loan, with an amortized cost of $11.5 million, in maturity default at December 31, 2020 and 2019, respectively. (2) At December 31, 2020, the amortized costs of the CRE whole loans, summarized by contractual maturity assuming full exercise of the extension options, were $112.4 million, $125.1 million and $1.3 billion in 2021, 2022 and 2023 and thereafter, respectively. At December 31, 2019, the amortized costs of the CRE whole loans, summarized by contractual maturity assuming full exercise of the extension options, were $105.5 million, $68.0 million and $1.6 billion in 2020, 2021 and 2022 and thereafter, respectively. |
FINANCING RECEIVABLES (Tables)
FINANCING RECEIVABLES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 and 2019 and the allowance for credit losses and recorded investments in loans at December 31, 2020 and 2019 (in thousands, except amount in the footnotes): Years Ended December 31, 2020 2019 CRE Loans CRE Loans (1) Allowance for credit losses: Allowance for credit losses at beginning of year $ 1,460 $ 1,401 Adoption of the new CECL guidance 3,032 — Provision for credit losses (2) 30,815 59 Charge off of realized loss on sale of loan (3) (997 ) — Allowance for credit losses at end of year $ 34,310 $ 1,460 (1) The Company’s mezzanine loan and preferred equity investments were evaluated individually for impairment during the year ended December 31, 2019 and were determined to have no evidence of impairment. (2) Excludes the recovery of credit losses on one bank loan with no amortized cost or carrying value at December 31, 2020 and 2019 that received a payment of approximately $1,000 during the year ended December 31, 2019. (3) The allowance for credit losses included a realized loss of $997,000 that was charged to the allowance related to one CRE loan sale that occurred during the year ended December 31, 2020. There was no such charge off as of December 31, 2019. |
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 • • 2 • • 3 • • 4 • • 5 • may be • The property has a material vacancy rate • 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 and preferred equity investments 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 footnotes): Rating 1 Rating 2 Rating 3 Rating 4 Rating 5 Total (1) At December 31, 2020: Whole loans $ — $ 611,838 $ 599,208 $ 262,398 $ 36,134 $ 1,509,578 Mezzanine loan — — 4,700 — — 4,700 Preferred equity investments — — 6,452 21,262 — 27,714 Total $ — $ 611,838 $ 610,360 $ 283,660 $ 36,134 $ 1,541,992 At December 31, 2019: Whole loans $ — $ 1,660,274 $ 96,475 $ 3,848 $ — $ 1,760,597 Mezzanine loan (2) — 4,700 — — — 4,700 Preferred equity investments (2) — 26,148 — — — 26,148 Total $ — $ 1,691,122 $ 96,475 $ 3,848 $ — $ 1,791,445 (1) The total amortized cost of CRE loans excluded accrued interest receivable of $7.3 million and $6.7 million at December 31, 2020 and 2019, respectively. (2) The Company’s mezzanine loan and preferred equity investments were evaluated individually for impairment at December 31, 2019. Credit risk profiles of CRE loans by origination year at amortized cost were as follows (in thousands, except amounts in footnotes): 2020 2019 2018 2017 2016 Prior Total (1) At December 31, 2020: Whole loans, floating-rate: (2) Rating 2 $ 221,364 $ 279,077 $ 111,397 $ — $ — $ — $ 611,838 Rating 3 43,579 246,073 246,944 45,142 — 17,470 599,208 Rating 4 — 77,495 129,536 46,220 — 9,147 262,398 Rating 5 — 13,938 — 19,900 — 2,296 36,134 Total whole loans, floating-rate 264,943 616,583 487,877 111,262 — 28,913 1,509,578 Mezzanine loan (rating 3) — — 4,700 — — — 4,700 Preferred equity investments: Rating 3 — 6,452 — — — — 6,452 Rating 4 — — 21,262 — — — 21,262 Total preferred equity investments — 6,452 21,262 — — — 27,714 Total $ 264,943 $ 623,035 $ 513,839 $ 111,262 $ — $ 28,913 $ 1,541,992 2019 2018 2017 2016 2015 Prior Total (1) At December 31, 2019: Whole loans, floating-rate: (2) Rating 2 $ 669,947 $ 776,078 $ 202,577 $ — $ — $ 11,672 $ 1,660,274 Rating 3 21,593 — 37,008 — 17,471 20,403 96,475 Rating 4 — — — — 3,848 — 3,848 Total whole loans, floating-rate 691,540 776,078 239,585 — 21,319 32,075 1,760,597 Mezzanine loan (rating 2) — 4,700 — — — — 4,700 Preferred equity investments (rating 2) 5,741 20,407 — — — — 26,148 Total $ 697,281 $ 801,185 $ 239,585 $ — $ 21,319 $ 32,075 $ 1,791,445 (1) The total amortized cost of CRE loans excluded accrued interest receivable of $7.3 million and $6.7 million at December 31, 2020 and 2019, respectively. (2) Acquired CRE whole loans are grouped within each loan’s year of issuance. |
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 Days (1) Total Past Due Current (2) Total Loans Receivable (3) Total Loans > 90 Days and Accruing (1) At December 31, 2020: Whole loans $ — $ — $ 11,443 $ 11,443 $ 1,498,135 $ 1,509,578 $ 11,443 Mezzanine loan — — — — 4,700 4,700 — Preferred equity investments — — — — 27,714 27,714 — Total $ — $ — $ 11,443 $ 11,443 $ 1,530,549 $ 1,541,992 $ 11,443 At December 31, 2019: Whole loans $ — $ — $ 11,503 $ 11,503 $ 1,749,094 $ 1,760,597 $ 11,503 Mezzanine loan — — — — 4,700 4,700 — Preferred equity investments — — — — 26,148 26,148 — Total $ — $ — $ 11,503 $ 11,503 $ 1,779,942 $ 1,791,445 $ 11,503 (1) Includes one whole loan, with an amortized cost of $11.4 million and $11.5 million, that was in maturity default at December 31, 2020 and 2019, respectively. The loan is performing with respect to debt service at December 31, 2020 and 2019. During the years ended December 31, 2020, 2019 and 2018, the Company recognized interest income of $670,000, $747,000 and $621,000, respectively, on this whole loan. (2) Includes two whole loans that entered maturity default in December 2020, with total amortized costs of $28.3 million at December 31, 2020. (3) The total amortized cost of CRE loans excluded accrued interest receivable of $7.3 million and $6.7 million at December 31, 2020 and 2019, respectively. |
Summary of TDRs | The following table summarizes TDRs during the year ended December 31, 2020 (dollars in thousands): Year Ended December 31, 2020 Number of Loans Pre- Modification Outstanding Recorded Balance Post- Modification Outstanding Recorded Balance CRE whole loans (1) 2 $ 56,882 $ 56,882 (1) In November 2020, the Company received the deed in lieu of foreclosure on one loan that underwent a troubled debt restructuring in the third quarter 2020 (See Note 8). |
INVESTMENT IN REAL ESTATE AND_2
INVESTMENT IN REAL ESTATE AND OTHER ACQUIRED ASSETS AND ASSUMED LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Investment In Real Estate And Other Acquired Assets And Assumed Liabilities [Abstract] | |
Summary of Acquisition Date Value of Acquired Assets and Liabilities | The following table summarizes the acquisition date value of the acquired assets and liabilities (in thousands): December 31, 2020 Assets acquired: Building $ 30,787 Site Improvements 157 FF&E 2,980 Investment in real estate 33,924 Right of use assets (1) 5,603 Intangible assets (2) 3,336 Total assets acquired 42,863 Liabilities assumed: Lease liabilities (3,113 ) Total liabilities assumed (3,113 ) Fair value of net asset acquired $ 39,750 (1) Right of use assets include a right of use asset associated with an acquired (2) Intangible assets include a franchise agreement intangible of $2.8 million and a customer list intangible asset of $477,000 at December 31, 2020. |
Schedule of Investments in Real Estate and Related Intangible Assets | The following table summarizes the book value of the Company’s investments in real estate and related intangible assets (in thousands, except amounts in the footnotes): Accumulated Assets acquired: Cost Depreciation & Amortization Book Value Investment in real estate (1) $ 33,929 $ (123 ) $ 33,806 Right of use assets (2) 5,603 (11 ) 5,592 Intangible assets (3) 3,336 (42 ) 3,294 Total 42,868 (176 ) 42,692 Liabilities assumed: Lease liabilities (3,113 ) 6 (3,107 ) Total (3,113 ) 6 (3,107 ) $ 39,755 $ 39,585 (1) Includes approximately $5,000 of furniture and fixtures purchased for the property subsequent to the date of acquisition, i (2) Right of use assets include 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 $2.5 million at December 31, 2020. (3) Intangible assets include a franchise agreement intangible of $2.8 million and a customer list intangible asset of $477,000 at December 31, 2020. |
INVESTMENT SECURITIES AVAILAB_2
INVESTMENT SECURITIES AVAILABLE-FOR-SALE (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Available For Sale Securities [Abstract] | |
Available-for-sale securities | The following table summarizes the Company’s investment securities available-for-sale, including those pledged as collateral (in thousands, except amounts in the footnote): Amortized Cost (1) Unrealized Gains Unrealized Losses Fair Value (2) At December 31, 2020: CMBS, fixed-rate $ 2,080 $ — $ — $ 2,080 At December 31, 2019: CMBS, fixed-rate $ 132,235 $ 6,596 $ (792 ) $ 138,039 CMBS, floating-rate 382,659 995 (979 ) 382,675 Total $ 514,894 $ 7,591 $ (1,771 ) $ 520,714 (1) The amortized cost of CMBS excluded accrued interest receivable of $56,000 and $1.1 million at December 31, 2020 and 2019, respectively. ( 2 ) At December 31, 2019, investment securities available-for-sale with fair values of $466.9 million were pledged as collateral under related financings. There were no investment securities available-for-sale pledged as collateral at December 31, 2020. |
INVESTMENTS IN UNCONSOLIDATED_2
INVESTMENTS IN UNCONSOLIDATED ENTITIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Equity Method Investments And Joint Ventures [Abstract] | |
Schedule of unconsolidated entities | The following table summarizes the Company’s investments in unconsolidated entities at December 31, 2020 and 2019 and equity in earnings of unconsolidated entities for the years ended December 31, 2020, 2019 and 2018 (dollars in thousands, except amount in the footnotes): Equity in Earnings of Unconsolidated Entities December 31, Years Ended December 31, Ownership % at December 31, 2020 2020 2019 2020 2019 2018 Pelium Capital (1) — % $ — $ — $ — $ — $ (182 ) RCM Global LLC (2) — % — — — — (12 ) Investment in LCC Preferred Stock (3) — % — — — — 411 Subtotal — — — — 217 Investment in RCT I and II (4) 3.0 % 1,548 1,548 77 100 96 Total $ 1,548 $ 1,548 $ 77 $ 100 $ 313 (1) In December 2018, Pelium Capital Partners, L.P. was fully liquidated. (2) In December 2018, RCM Global LLC was fully liquidated. (3) The Company’s investment in LEAF Commercial Capital, Inc. (“LCC”) liquidated in July 2017 as a result of the sale of LCC. Earnings for the year ended December 31, 2018 were related to the receipt of a distribution of funds formerly held in escrow accounts established as part of the sale. ( 4 ) During the years ended December 31, 2020 , 2019 and 2018 , dividends from the investments in RCT I and RCT II’s common shares we re recorded in other revenue. See Note 1 1 for the disclosures on the associated unsecured junior subordinated debentures . |
BORROWINGS (Tables)
BORROWINGS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020: XAN 2019-RSO7 Senior Notes $ 415,621 $ 2,861 $ 412,760 1.60% 15.3 years $ 516,979 XAN 2020-RSO8 Senior Notes 388,459 4,164 384,295 1.62% 14.2 years 475,347 XAN 2020-RSO9 Senior Notes 234,731 3,857 230,874 3.31% 16.3 years 285,862 Unsecured junior subordinated debentures 51,548 — 51,548 4.18% 15.7 years — 4.50% Convertible Senior Notes 143,750 6,498 137,252 4.50% 1.6 years — Senior Unsecured Notes due 2027 50,000 3,574 46,426 12.00% 6.6 years — Senior secured financing facility 33,360 4,046 29,314 5.75% 6.6 years 239,385 CRE - term warehouse financing facilities (1) 13,516 1,258 12,258 2.66% 299 days 20,000 Total $ 1,330,985 $ 26,258 $ 1,304,727 2.83% 13.0 years $ 1,537,573 Principal Outstanding Unamortized Issuance Costs and Discounts Outstanding Borrowings Weighted Average Borrowing Rate Weighted Average Remaining Maturity Value of Collateral At December 31, 2019: XAN 2018-RSO6 Senior Notes $ 177,118 $ 1,352 $ 175,766 3.17% 15.5 years $ 293,890 XAN 2019-RSO7 Senior Notes 575,679 5,007 570,672 3.03% 16.3 years 687,037 Unsecured junior subordinated debentures 51,548 — 51,548 5.90% 16.7 years — 4.50% Convertible Senior Notes 143,750 10,137 133,613 4.50% 2.6 years — 8.00% Convertible Senior Notes 21,182 9 21,173 8.00% 15 days — CRE - term warehouse financing facilities (1) 547,619 2,714 544,905 3.71% 1.2 years 705,221 CMBS - short term repurchase agreements (2) 374,900 — 374,900 2.87% 21 days 484,398 Total $ 1,891,796 $ 19,219 $ 1,872,577 3.45% 7.4 years $ 2,170,546 (1) Principal outstanding includes accrued interest payable of $16,000 and $810,000 at December 31, 2020 and 2019, respectively (2) Principal outstanding includes accrued interest payable of $470,000 and at December 31, 2019 |
Schedule of securitizations | The following table sets forth certain information with respect to the Company’s consolidated securitizations at December 31, 2020 (in thousands): Closing Date Maturity Date End of Designated Principal Reinvestment Period (1) Total Note Paydowns from Closing Date through December 31, 2020 XAN 2019-RSO7 April 2019 April 2036 April 2022 $ 170,190 XAN 2020-RSO8 March 2020 March 2035 March 2023 $ 47,284 XAN 2020-RSO9 (2) September 2020 April 2037 N/A $ 11,063 (1) The designated principal reinvestment period is the period in which principal repayments can be utilized to purchase loans held outside of the respective securitization that represent the funded commitments of existing collateral in the respective securitization that were not funded as of the date the respective securitization was closed. (2) A designated principal reinvestment period is excluded from the terms of Exantas Capital Corp. 2020-RSO9, Ltd.’s (“XAN 2020-RSO9”) indenture. XAN 2020-RSO9 includes a future advances reserve account of $18.6 million at December 31, 2020 to fund unfunded commitments, |
Schedule of convertible senior notes | The following table summarizes the 4.50% Convertible Senior Notes at December 31, 2020 (dollars in thousands, except the conversion prices and amounts in the footnotes): Principal Outstanding Borrowing Rate Effective Rate (1)(2) Conversion Rate (3)(4) Conversion Price (4) Maturity Date 4.50% Convertible Senior Notes $ 143,750 4.50 % 7.43 % 27.7222 $ 36.06 August 15, 2022 (1) Includes the amortization of the market discounts and deferred debt issuance costs, if any, for the 4.50% Convertible Senior Notes recorded in interest expense on the consolidated statements of operations. (2) During the years ended December 31, 2020 and 2019 the effective interest rate for the 4.50% Convertible Senior Notes was 7.43%. (3) Represents the number of shares of common stock per $1,000 principal amount of the 4.50% Convertible Senior Notes’ principal outstanding, subject to adjustment as provided in the Third Supplemental Indenture (the “4.50% Convertible Senior Notes Indenture (4) The conversion rate and conversion price of the 4.50% Convertible Senior Notes at December 31, 2020 are adjusted to reflect quarterly cash dividends in excess of a $0.30 dividend threshold, as defined in the 4.50% Convertible Senior Notes Indenture. |
Senior secured warehouse financing facilities and repurchase agreements | The following table sets forth certain information with respect to the Company’s senior secured financing facility, term warehouse facilities and December 31, 2020 December 31, 2019 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) $ 29,314 $ 239,385 17 5.75% $ — $ — — —% CRE - Term Warehouse Financing Facilities (2) Wells Fargo Bank, N.A. (3) — — — —% 225,217 291,903 28 3.70% Barclays Bank PLC (4) — — — —% 111,881 145,035 14 3.99% JPMorgan Chase Bank, N.A. (5) 12,258 20,000 1 2.66% 207,807 268,283 17 3.56% CMBS - Short-Term Repurchase Agreements (2) Deutsche Bank Securities Inc. — — — —% 37,141 57,331 6 3.13% JP Morgan Securities LLC — — — —% 33,703 42,075 13 2.87% Barclays Capital Inc. — — — —% 87,643 112,939 7 2.82% RBC Capital Markets, LLC — — — —% 34,829 47,081 5 2.96% RBC (Barbados) Trading Bank Corporation — — — —% 181,584 224,972 30 2.82% Total $ 41,572 $ 259,385 $ 919,805 $ 1,189,619 (1) Includes $4.0 million of deferred debt issuance costs at December 31, 2020 on the senior secured financing facility. (2) Outstanding borrowings include accrued interest payable. (3) Includes $607,000 of deferred debt issuance costs at December 31, 2019 (4) Includes $817,000 of deferred debt issuance costs at December 31, 2019. (5) Includes $1.3 million and $1.3 million of deferred debt issuance costs at December 31, 2020 and 2019, respectively, which includes $678,000 of deferred debt issuance costs at December 31, 2020 from other term warehouse financing facilities with no balance. |
Schedule of amount at risk under credit facility | The following table shows information about the amount at risk under the warehouse financing facilities (dollars in thousands): Amount at Risk (1) Weighted Average Remaining Maturity Weighted Average Interest Rate At December 31, 2020: CRE - Term Warehouse Financing Facilities JPMorgan Chase Bank, N. A. $ 6,559 299 days 2.66% (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. |
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): Total 2021 2022 2023 2024 2025 and Thereafter At December 31, 2020: CRE securitizations $ 1,038,811 $ — $ — $ — $ — $ 1,038,811 Unsecured junior subordinated debentures 51,548 — — — — 51,548 4.50% Convertible Senior Notes 143,750 — 143,750 — — — Senior Unsecured Notes due 2027 50,000 — — — — 50,000 Senior Secured Financing Facility 33,360 — — — — 33,360 CRE - term warehouse financing facilities (1) 13,516 13,516 — — — — Total $ 1,330,985 $ 13,516 $ 143,750 $ — $ — $ 1,173,719 (1) Includes accrued interest payable in the balances of principal outstanding. |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of restricted common stock transactions | The following table summarizes the Company’s restricted common stock transactions: Non-Employee Directors Non- Employees (1) Total Unvested shares at January 1, 2020 8,186 132,134 140,320 Issued 21,648 59,254 80,902 Vested (18,224 ) (181,391 ) (199,615 ) Forfeited — (9,997 ) (9,997 ) Unvested shares at December 31, 2020 11,610 — 11,610 (1) Non-employees were employees of C-III or Resource America, Inc. (“Resource America”) from January 1, 2020 to July 31, 2020. On July 31, 2020, the Company’s management contract was purchased from the Prior Manager by the Manager in the ACRES acquisition. See Note 1. |
Schedule of restricted stock granted | The following table summarizes restricted common stock grants during the year ended December 31, 2020: Grant Date Shares Vesting per Year Vesting Date(s) January 21, 2020 (1) 59,255 33.3% January 21, 2021, January 21, 2022 and January 21, 2023 February 3, 2020 (1) 947 100% February 3, 2021 March 9, 2020 (1) 3,614 100% March 9, 2021 June 1, 2020 (1) 5,477 100% June 1, 2021 July 31, 2020 5,231 100% July 31, 2021 September 30, 2020 6,379 100% September 30, 2021 (1) All unvested restricted stock grants made before July 31, 2020 were accelerated on July 31, 2020 upon the close of the ACRES acquisition. |
Summary of stock option transactions | The following table summarizes the status of the Company’s vested stock options at December 31, 2020: Vested Options Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands) Vested at January 1, 2020 3,333 $ 76.80 Vested — — Exercised — — Forfeited — — Expired — — Vested at December 31, 2020 3,333 $ 76.80 0.37 $ — |
Summary of share based compensation expense | The components of equity compensation expense for the periods presented are as follows (in thousands): Years Ended December 31, 2020 2019 2018 Restricted shares granted to non-employees (1) $ 2,855 $ 1,937 $ 2,427 Restricted shares granted to non-employee directors 281 276 290 Total $ 3,136 $ 2,213 $ 2,717 (1) Non-employees were employees of C-III or Resource America from January 1, 2020 to July 31, 2020. On July 31, 2020, the Company’s management contract was purchased from the Prior Manager by the Manager in the ACRES acquisition. See Note 1. |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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 as follows (dollars in thousands, except per share amounts): Years Ended December 31, 2020 2019 2018 Net (loss) income from continuing operations $ (197,713 ) $ 36,217 $ 27,306 Net income allocated to preferred shares (10,350 ) (10,350 ) (12,972 ) Consideration paid in excess of carrying value of preferred shares — — (7,482 ) Net (loss) income from continuing operations allocable to common shares (208,063 ) 25,867 6,852 Net (loss) income from discontinued operations, net of tax — (251 ) 121 Net (loss) income allocable to common shares $ (208,063 ) $ 25,616 $ 6,973 Weighted average number of common shares outstanding: Weighted average number of common shares outstanding - basic 10,566,904 10,476,704 10,399,440 Weighted average number of warrants outstanding (1) 196,357 — — Total weighted average number of common shares outstanding - basic 10,763,261 10,476,704 10,399,440 Effect of dilutive securities - unvested restricted stock — 80,081 61,594 Weighted average number of common shares outstanding - diluted 10,763,261 10,556,785 10,461,034 Net (loss) income per common share - basic: Continuing operations $ (19.33 ) $ 2.47 $ 0.66 Discontinued operations — (0.02 ) 0.01 Net (loss) income per common share - basic $ (19.33 ) $ 2.45 $ 0.67 Net (loss) income per common share - diluted: Continuing operations $ (19.33 ) $ 2.45 $ 0.66 Discontinued operations — (0.02 ) 0.01 Net (loss) income per common share - diluted $ (19.33 ) $ 2.43 $ 0.67 (1) See Note 12 for further details regarding the warrants. |
DISTRIBUTIONS (Tables)
DISTRIBUTIONS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Distributions [Abstract] | |
Dividends Declared | The following tables present dividends declared (on a per share basis) for the years ended December 31, 2020, 2019 and 2018 and for the period from January 1, 2018 through March 26, 2018 with respect to the Company’s Series B Preferred Stock: Common Stock Date Paid Total Dividend Paid Dividend Per Share (in thousands) 2019 December 31 January 28, 2020 $ 8,767 $ 0.825 September 30 October 25 $ 7,967 $ 0.75 June 30 July 26 $ 7,172 $ 0.675 March 31 April 26 $ 6,373 $ 0.60 2018 December 31 January 25, 2019 $ 5,540 $ 0.525 September 30 October 26 $ 4,749 $ 0.45 June 30 July 27 $ 3,165 $ 0.30 March 31 April 27 $ 1,584 $ 0.15 Series B Preferred Stock Series C Preferred Stock Date Paid Total Dividend Paid Dividend Per Share Date Paid Total Dividend Paid Dividend Per Share (in thousands) (in thousands) 2020 December 31 N/A N/A N/A February 1, 2021 $ 2,587 $ 0.5390625 March 31, June 30 and September 30 N/A N/A N/A October 25 $ 7,763 $ 1.6171875 2019 December 31 N/A N/A N/A January 30, 2020 $ 2,587 $ 0.5390625 September 30 N/A N/A N/A October 30 $ 2,588 $ 0.5390625 June 30 N/A N/A N/A July 30 $ 2,587 $ 0.5390625 March 31 N/A N/A N/A April 30 $ 2,588 $ 0.5390625 2018 December 31 N/A N/A N/A January 30, 2019 $ 2,588 $ 0.5390625 September 30 N/A N/A N/A October 30 $ 2,588 $ 0.5390625 June 30 N/A N/A N/A July 30 $ 2,588 $ 0.5390625 March 31 N/A N/A N/A April 30 $ 2,588 $ 0.5390625 March 26 March 26 $ 1,480 $ 0.320830 N/A N/A N/A |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Schedule of accumulated other comprehensive income (loss) | The following table presents the changes in each component of accumulated other comprehensive income (loss) for the year ended December 31, 2020 (in thousands): Net Unrealized (Loss) Gain on Derivatives Net Unrealized Gain (Loss) on Investment Securities Available-for-Sale Accumulated Other Comprehensive Income (Loss) Balance at January 1, 2020 $ (3,999 ) $ 5,820 $ 1,821 Other comprehensive loss before reclassifications (7,233 ) (191,283 ) (198,516 ) Amounts reclassified from accumulated other comprehensive income (1) 1,254 185,463 186,717 Balance at December 31, 2020 $ (9,978 ) $ — $ (9,978 ) (1) Amounts reclassified from accumulated other comprehensive income are reclassified to interest expense and net realized and unrealized gain (loss) on investment securities available-for-sale and loans and derivatives 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, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair value of financial instruments measured on recurring basis | The following table presents the Company’s financial instruments carried at fair value on a recurring basis based upon the fair value hierarchy (in thousands): Level 1 Level 2 Level 3 Total At December 31, 2020: Assets: Investment securities available-for-sale $ — $ — $ 2,080 $ 2,080 Total assets at fair value $ — $ — $ 2,080 $ 2,080 At December 31, 2019: Assets: Investment securities available-for-sale $ — $ — $ 520,714 $ 520,714 Derivatives — 30 — 30 Total assets at fair value $ — $ 30 $ 520,714 $ 520,744 Liabilities: Derivatives $ — $ 4,558 $ — $ 4,558 Total liabilities at fair value $ — $ 4,558 $ — $ 4,558 |
Fair value assets unobservable input reconciliation | The following table presents additional information about the Company’s assets that are measured at fair value on a recurring basis for which the Company has utilized Level 3 inputs (in thousands): CMBS Balance, January 1, 2020 $ 520,714 Included in earnings (185,929 ) Purchases 24,600 Sales (111,846 ) Paydowns (4,733 ) Relinquishments (234,906 ) Included in other comprehensive loss (5,820 ) Balance, December 31, 2020 $ 2,080 |
Fair value assets and liabilities measured on nonrecurring basis | The following table summarizes the Company’s financial instruments measured at fair value on a nonrecurring basis based upon the fair value hierarchy (in thousands): Level 1 Level 2 Level 3 Total At December 31, 2019: Assets: Asset held for sale $ — $ — $ 16,500 $ 16,500 Total assets at fair value $ — $ — $ 16,500 $ 16,500 Liabilities: Pearlmark Mezz indemnification $ — $ — $ 56 $ 56 Total liabilities at fair value $ — $ — $ 56 $ 56 |
Fair value financial instruments not reported at fair value | The fair values of the Company’s remaining financial instruments that are not reported at fair value on the consolidated balance sheets are reported in the following table (in thousands): Fair Value Measurements Carrying Value Fair Value Quoted Prices in Active Markets for Identical Assets of Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) At December 31, 2020: Assets: CRE whole loans held for investment $ 1,477,295 $ 1,513,822 $ — $ — $ 1,513,822 CRE mezzanine loan $ 4,399 $ 4,700 $ — $ — $ 4,700 CRE preferred equity investments $ 25,988 $ 27,650 $ — $ — $ 27,650 CRE whole loans, fixed-rate (1) $ 4,809 $ 4,809 $ — $ — $ 4,809 Loan receivable - related party $ 11,875 $ 10,184 $ — $ — $ 10,184 Liabilities: Senior notes in CRE securitizations $ 1,027,929 $ 1,030,854 $ — $ — $ 1,030,854 Junior subordinated notes $ 51,548 $ 31,955 $ — $ — $ 31,955 Convertible notes $ 137,252 $ 132,437 $ — $ — $ 132,437 Senior Unsecured Notes due 2027 $ 46,426 $ 58,910 $ — $ — $ 58,910 Senior secured financing facility $ 29,314 $ 33,360 $ — $ — $ 33,360 Warehouse financing facilities $ 12,258 $ 13,516 $ — $ — $ 13,516 At December 31, 2019: Assets: CRE whole loans held for investment $ 1,759,137 $ 1,768,322 $ — $ — $ 1,768,322 CRE mezzanine loan $ 4,700 $ 4,700 $ — $ — $ 4,700 CRE preferred equity investments $ 26,148 $ 26,237 $ — $ — $ 26,237 Asset held for sale $ 16,500 $ 16,500 $ — $ — $ 16,500 Liabilities: Senior notes in CRE securitizations $ 746,438 $ 754,023 $ — $ — $ 754,023 Junior subordinated notes $ 51,548 $ 25,831 $ — $ — $ 25,831 Convertible senior notes $ 154,786 $ 164,932 $ — $ — $ 164,932 Warehouse financing facilities and repurchase agreements $ 919,805 $ 922,519 $ — $ — $ 922,519 (1) Classified as other assets on the consolidated balance sheet. |
MARKET RISK AND DERIVATIVE IN_2
MARKET RISK AND DERIVATIVE INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Fair value of derivative instruments | The following tables present the fair value of the Company’s derivative financial instruments at December 31, 2020 and 2019 on the Company’s consolidated balance sheets and the related effect of the derivative instruments on the consolidated statements of operations during the years ended December 31, 2020, 2019 and 2018: Fair Value of Derivative Instruments (in thousands) Liability Derivatives At December 31, 2020 Notional Amount Consolidated Balance Sheets Location Fair Value Interest rate swap contracts, hedging $ — Accumulated other comprehensive (loss) income $ (9,978 ) Asset Derivatives At December 31, 2019 Notional Amount Consolidated Balance Sheets Location Fair Value Interest rate swap contracts, hedging (1) $ 2,630 Derivatives, at fair value $ 30 Liability Derivatives Notional Amount Consolidated Balance Sheets Location Fair Value Interest rate swap contracts, hedging (1) $ 87,551 Derivatives, at fair value $ 4,558 Interest rate swap contracts, hedging $ 90,181 Accumulated other comprehensive (loss) income $ (3,999 ) (1) Interest rate swap contracts are accounted for as cash flow hedges. |
The effect of derivative instruments on the statement of income | The Effect of Derivative Instruments on the Consolidated Statements of Operations (in thousands) Derivatives Year Ended December 31, 2020 Consolidated Statements of Operations Location Realized and Unrealized Gain (Loss) (1) Interest rate swap contracts Other (expense) income $ (10 ) Interest rate swap contracts, hedging Interest expense $ (1,562 ) Derivatives Year Ended December 31, 2019 Consolidated Statements of Operations Location Realized and Unrealized Gain (Loss) (1) Interest rate swap contracts, hedging Interest expense $ (138 ) Derivatives Year Ended December 31, 2018 Consolidated Statements of Operations Location Realized and Unrealized Gain (Loss) (1) Interest rate swap contracts, hedging Interest expense $ (169 ) (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, 2020 | |
Offsetting [Abstract] | |
Offsetting financial assets and derivative assets | The following table presents a summary of the Company’s offsetting of derivative assets (in thousands): (i) Gross Amounts (ii) Gross Amounts Offset on the (iii) = (i) - (ii) Net Amounts of Assets Presented on the (iv) Gross Amounts Not Offset on the Consolidated Balance Sheets of Recognized Assets Consolidated Balance Sheets Consolidated Balance Sheets Financial Instruments Cash Collateral Pledged (v) = (iii) - (iv) Net Amount At December 31, 2019: Derivatives, at fair value $ 30 $ — $ 30 $ — $ — $ 30 |
Offsetting financial liabilities and derivative 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) Gross Amounts (ii) Gross Amounts Offset on the (iii) = (i) - (ii) Net Amounts of Liabilities Presented on the (iv) Gross Amounts Not Offset on the Consolidated Balance Sheets of Recognized Liabilities Consolidated Balance Sheets Consolidated Balance Sheets Financial Instruments (1) Cash Collateral Pledged (v) = (iii) - (iv) Net Amount At December 31, 2020: Warehouse financing facilities (2) $ 12,258 $ — $ 12,258 $ 12,258 $ — $ — Total $ 12,258 $ — $ 12,258 $ 12,258 $ — $ — At December 31, 2019: Derivatives, at fair value (3) $ 4,558 $ — $ 4,558 $ — $ 4,558 $ — Warehouse financing facilities and repurchase agreements (2) 919,805 — 919,805 915,041 4,764 — Total $ 924,363 $ — $ 924,363 $ 915,041 $ 9,322 $ — (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 $20.0 million and $1.2 billion at December 31, 2020 and 2019, respectively (3) The Company posted excess cash collateral |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Components of income taxes | The following table details the components of income taxes (in thousands): Years Ended December 31, 2020 2019 2018 Income tax (benefit) expense: Current: Federal $ — $ — $ — State — — (316 ) Total current — — (316 ) Deferred: Federal — — (27 ) State — — — Total deferred — — (27 ) Total $ — $ — $ (343 ) |
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 years presented (in thousands): Years Ended December 31, 2020 2019 2018 Income tax (benefit) expense: Statutory tax $ (37 ) $ 6 $ (220 ) State and local taxes, net of federal benefit (3,353 ) 2,716 (1,007 ) Permanent adjustments — — (3 ) True-up of prior period tax expense — 816 (4 ) Valuation allowance 6,407 (5,402 ) 5,348 Discontinued operations adjustment — 863 (4,344 ) Other items (3,017 ) 1,001 (113 ) Total $ — $ — $ (343 ) |
Components of deferred tax assets and liabilities | The components of deferred tax assets and liabilities were as follows (in thousands): December 31, 2020 2019 Deferred tax assets related to: Federal, state and local loss carryforwards $ 13,764 $ 7,026 Accrued expenses — 27 Charitable contribution carryforward 58 16 Amortization of intangibles — 466 Unrealized gains — 662 Capital loss carryforward 327 2,736 Equity investments 7,369 — Total deferred tax assets 21,518 10,933 Valuation allowance (21,235 ) (9,883 ) Total deferred tax assets, net of valuation allowance $ 283 $ 1,050 Deferred tax liabilities related to: Investment in securities $ — $ (1,050 ) Amortization of intangibles (252 ) — Unrealized gains (31 ) — Total deferred tax liabilities $ (283 ) $ (1,050 ) Deferred tax assets, net $ — $ — |
QUARTERLY RESULTS (Tables)
QUARTERLY RESULTS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020: Interest income $ 33,290 $ 27,243 $ 24,638 $ 23,072 Interest expense 18,394 12,547 13,033 14,034 Net interest income $ 14,896 $ 14,696 $ 11,605 $ 9,038 Net (loss) income from continuing operations $ (196,521 ) $ (33,400 ) $ 8,159 $ 24,049 Net loss from discontinued operations — — — — Net income (196,521 ) (33,400 ) 8,159 24,049 Net income allocated to preferred shares (2,588 ) (2,587 ) (2,588 ) (2,587 ) Net (loss) income allocable to common shares $ (199,109 ) $ (35,987 ) $ 5,571 $ 21,462 Net (loss) income per common share from continuing operations - basic $ (18.89 ) $ (3.41 ) $ 0.51 $ 1.96 Net loss per common share from discontinued operations - basic — — — — Total net (loss) income per common share - basic $ (18.89 ) $ (3.41 ) $ 0.51 $ 1.96 Net (loss) income per common share from continuing operations - diluted $ (18.89 ) $ (3.41 ) $ 0.51 $ 1.95 Net loss per common share from discontinued operations - diluted — — — — Total net (loss) income per common share - diluted $ (18.89 ) $ (3.41 ) $ 0.51 $ 1.95 March 31 June 30 September 30 December 31 (unaudited) (unaudited) (unaudited) (unaudited) (in thousands, except per share data) Year ended December 31, 2019: Interest income $ 33,932 $ 37,138 $ 39,292 $ 34,524 Interest expense 19,395 21,581 22,712 20,149 Net interest income $ 14,537 $ 15,557 $ 16,580 $ 14,375 Net income from continuing operations $ 8,170 $ 9,003 $ 12,620 $ 6,424 Net loss from discontinued operations (37 ) (112 ) (63 ) (39 ) Net income 8,133 8,891 12,557 6,385 Net income allocated to preferred shares (2,588 ) (2,587 ) (2,588 ) (2,587 ) Net income allocable to common shares $ 5,545 $ 6,304 $ 9,969 $ 3,798 Net income per common share from continuing operations - basic $ 0.53 $ 0.61 $ 0.96 $ 0.37 Net loss per common share from discontinued operations - basic — (0.01 ) (0.01 ) — Total net income per common share - basic $ 0.53 $ 0.60 $ 0.95 $ 0.37 Net income per common share from continuing operations - diluted $ 0.53 $ 0.61 $ 0.95 $ 0.36 Net loss per common share from discontinued operations - diluted — (0.01 ) (0.01 ) — Total net income per common share - diluted $ 0.53 $ 0.60 $ 0.94 $ 0.36 |
ORGANIZATION (Details)
ORGANIZATION (Details) | Feb. 16, 2021$ / sharesshares | Dec. 31, 2020USD ($)$ / shares | Dec. 31, 2019$ / shares |
Variable Interest Entity [Line Items] | |||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | |
Subsequent Event | |||
Variable Interest Entity [Line Items] | |||
Reverse stock split of common stock | 0.333 | ||
Common stock, par value (in dollars per share) | $ 0.001 | ||
Number of fractional shares issued | shares | 0 | ||
ACRES Capital Corp | Exantas Capital Corp | Maximum | |||
Variable Interest Entity [Line Items] | |||
Secured capital commitments | $ | $ 375,000,000 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Jan. 01, 2020 | |
Summary Of Significant Accounting Policies [Line Items] | ||||
Cash balance in excess of federal deposit Insurance limit, amount | $ 27,300 | $ 77,600 | ||
Percentage of REIT taxable income distributed to stockholders not subject to federal corporate tax | 100.00% | |||
Provision for Income Tax | $ 0 | 0 | $ (343) | |
Operating loss carryforwards, valuation allowance | 62,900 | 32,900 | ||
Operating loss carryforwards, valuation allowance, tax expense impact | 21,200 | 9,900 | ||
CECL reserve | $ 4,500 | |||
CECL reserve recorded as charge to retained earnings | $ 3,000 | |||
Percentage of estimated CECL reserve out of aggregate outstanding principal balance of commercial loan portfolio | 0.25% | |||
Provision for credit losses | 30,815 | 58 | (1,595) | |
Allowance for credit losses | $ 34,310 | 1,460 | ||
Percentage of CECL reserve out of aggregate outstanding principal balance of commercial loan portfolio | 2.21% | |||
Foreign TRS | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Provision for Income Tax | $ 0 | |||
Commercial Real Estate Loans | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Aggregate outstanding principal balance of commercial loan portfolio | 1,548,072 | 1,799,259 | $ 1,800,000 | |
Provision for credit losses | 30,815 | 59 | ||
Allowance for credit losses | $ 34,310 | $ 1,460 | $ 1,401 | |
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 | 5.00% |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Reconciliation of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 29,355 | $ 79,958 | ||
Restricted cash | 38,386 | 14,476 | ||
Total cash, cash equivalents and restricted cash shown on the Company’s consolidated statements of cash flows | $ 67,741 | $ 94,434 | $ 95,474 | $ 204,364 |
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, 2020 | |
Summary Of Significant Accounting Policies [Line Items] | |
Building | 35 years |
Site Improvements | 10 years |
FF&E | 5 years |
Right of use assets | 66 years 6 months |
Lease liabilities | 66 years 6 months |
Minimum | |
Summary Of Significant Accounting Policies [Line Items] | |
Intangible assets | 3 years |
Maximum | |
Summary Of Significant Accounting Policies [Line Items] | |
Intangible assets | 16 years 6 months |
VARIABLE INTEREST ENTITIES (Con
VARIABLE INTEREST ENTITIES (Consolidated VIEs) (the Company is the primary beneficiary) (Details) - VIE, Primary Beneficiary | 12 Months Ended | |
Dec. 31, 2020USD ($)entity | Dec. 31, 2019entity | |
Variable Interest Entity [Line Items] | ||
Number of consolidated VIEs | entity | 6 | 5 |
Financial support, amount | $ | $ 0 |
VARIABLE INTEREST ENTITIES (Sch
VARIABLE INTEREST ENTITIES (Schedule of Carrying Value of Assets and Liabilities of Consolidated VIEs) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
ASSETS: | ||
Restricted cash | $ 38,386 | $ 14,476 |
Accrued interest receivable | 7,372 | 8,042 |
CRE loans, pledged as collateral | 1,507,682 | 1,789,985 |
Principal paydowns receivable | 4,300 | 19,500 |
Other assets | 8,783 | 3,290 |
Total assets | 1,654,084 | 2,454,326 |
LIABILITIES | ||
Accounts payable and other liabilities | 2,068 | 3,408 |
Accrued interest payable | 6,036 | 4,408 |
Borrowings | 1,304,727 | 1,872,577 |
Total liabilities | 1,319,702 | 1,897,928 |
VIE, Primary Beneficiary | ||
ASSETS: | ||
Restricted cash | 38,353 | 532 |
Accrued interest receivable | 5,398 | 3,780 |
CRE loans, pledged as collateral | 1,231,184 | 957,045 |
Principal paydowns receivable | 4,250 | |
Other assets | 114 | 25 |
Total assets | 1,279,299 | 980,621 |
LIABILITIES | ||
Accounts payable and other liabilities | 136 | 175 |
Accrued interest payable | 806 | 897 |
Borrowings | 1,027,929 | 746,439 |
Total liabilities | 1,028,871 | $ 747,511 |
CRE Securitizations | VIE, Primary Beneficiary | ||
ASSETS: | ||
Restricted cash | 37,846 | |
Accrued interest receivable | 5,398 | |
CRE loans, pledged as collateral | 1,231,184 | |
Principal paydowns receivable | 4,250 | |
Other assets | 114 | |
Total assets | 1,278,792 | |
LIABILITIES | ||
Accounts payable and other liabilities | 136 | |
Accrued interest payable | 806 | |
Borrowings | 1,027,929 | |
Total liabilities | 1,028,871 | |
Other | VIE, Primary Beneficiary | ||
ASSETS: | ||
Restricted cash | 507 | |
Accrued interest receivable | 0 | |
CRE loans, pledged as collateral | 0 | |
Principal paydowns receivable | 0 | |
Other assets | 0 | |
Total assets | 507 | |
LIABILITIES | ||
Accounts payable and other liabilities | 0 | |
Accrued interest payable | 0 | |
Borrowings | 0 | |
Total liabilities | $ 0 |
VARIABLE INTEREST ENTITIES (Unc
VARIABLE INTEREST ENTITIES (Unconsolidated VIEs) (the Company is not the primary beneficiary, but has a variable interest) (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||
Jun. 30, 2019 | Mar. 31, 2018 | Oct. 31, 2017 | Dec. 31, 2020 | Dec. 31, 2019 | |
Variable Interest Entity [Line Items] | |||||
Investments in unconsolidated entities | $ 1,548,000 | $ 1,548,000 | |||
Borrowings | 1,304,727,000 | $ 1,872,577,000 | |||
VIE, Not Primary Beneficiary | |||||
Variable Interest Entity [Line Items] | |||||
Carrying amount of private-label securitization | $ (20,289,000) | ||||
VIE, Not Primary Beneficiary | Investment in RCT I and II | |||||
Variable Interest Entity [Line Items] | |||||
Ownership percentage in VIE | 100.00% | ||||
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 | 3.00% | ||||
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 | 3.00% | ||||
Borrowings | $ 25,800,000 | ||||
VIE, Not Primary Beneficiary | C40 | |||||
Variable Interest Entity [Line Items] | |||||
Ownership percentage in VIE | 95.00% | ||||
Carrying amount of private-label securitization | $ 705,400,000 | 2,136,000 | |||
VIE, Not Primary Beneficiary | Prospect Hackensack | |||||
Variable Interest Entity [Line Items] | |||||
Carrying amount of private-label securitization | 21,262,000 | ||||
Payments to acquire interest in joint venture | $ 19,200,000 | ||||
VIE, Not Primary Beneficiary | Santa Clarita | |||||
Variable Interest Entity [Line Items] | |||||
Carrying amount of private-label securitization | $ 6,495,000 | ||||
Payments to acquire interest in joint venture | $ 5,500,000 |
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, 2020 | Dec. 31, 2019 | Oct. 31, 2017 |
ASSETS: | |||
Total assets | $ 1,654,084 | $ 2,454,326 | |
LIABILITIES | |||
Total liabilities | 1,319,702 | $ 1,897,928 | |
VIE, Not Primary Beneficiary | |||
ASSETS: | |||
Accrued interest receivable | 105 | ||
CRE loans | 27,714 | ||
Investment securities available-for-sale | 2,080 | ||
Investments in unconsolidated entities | 1,548 | ||
Total assets | 31,447 | ||
LIABILITIES | |||
Accrued interest payable | 188 | ||
Borrowings | 51,548 | ||
Total liabilities | 51,736 | ||
Net (liability) asset | (20,289) | ||
VIE, Not Primary Beneficiary | Interest Receivable | |||
ASSETS: | |||
Maximum Exposure to Loss | 0 | ||
VIE, Not Primary Beneficiary | Loans Pledged as Collateral | |||
ASSETS: | |||
Maximum Exposure to Loss | 27,714 | ||
VIE, Not Primary Beneficiary | Available-for-sale Securities | |||
ASSETS: | |||
Maximum Exposure to Loss | 2,080 | ||
VIE, Not Primary Beneficiary | Investments in Unconsolidated Entities | |||
ASSETS: | |||
Maximum Exposure to Loss | 1,548 | ||
Unsecured Junior Subordinated Debentures | VIE, Not Primary Beneficiary | |||
ASSETS: | |||
Accrued interest receivable | 6 | ||
CRE loans | 0 | ||
Investment securities available-for-sale | 0 | ||
Investments in unconsolidated entities | 1,548 | ||
Total assets | 1,554 | ||
LIABILITIES | |||
Accrued interest payable | 188 | ||
Borrowings | 51,548 | ||
Total liabilities | 51,736 | ||
Net (liability) asset | (50,182) | ||
C40 | VIE, Not Primary Beneficiary | |||
ASSETS: | |||
Accrued interest receivable | 56 | ||
CRE loans | 0 | ||
Investment securities available-for-sale | 2,080 | ||
Investments in unconsolidated entities | 0 | ||
Total assets | 2,136 | ||
LIABILITIES | |||
Accrued interest payable | 0 | ||
Borrowings | 0 | ||
Total liabilities | 0 | ||
Net (liability) asset | 2,136 | $ 705,400 | |
Prospect Hackensack | VIE, Not Primary Beneficiary | |||
ASSETS: | |||
Accrued interest receivable | 0 | ||
CRE loans | 21,262 | ||
Investment securities available-for-sale | 0 | ||
Investments in unconsolidated entities | 0 | ||
Total assets | 21,262 | ||
LIABILITIES | |||
Accrued interest payable | 0 | ||
Borrowings | 0 | ||
Total liabilities | 0 | ||
Net (liability) asset | 21,262 | ||
Santa Clarita | VIE, Not Primary Beneficiary | |||
ASSETS: | |||
Accrued interest receivable | 43 | ||
CRE loans | 6,452 | ||
Investment securities available-for-sale | 0 | ||
Investments in unconsolidated entities | 0 | ||
Total assets | 6,495 | ||
LIABILITIES | |||
Accrued interest payable | 0 | ||
Borrowings | 0 | ||
Total liabilities | 0 | ||
Net (liability) asset | $ 6,495 |
SUPPLEMENTAL CASH FLOW INFORM_3
SUPPLEMENTAL CASH FLOW INFORMATION (Details) - Continuing Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Non-cash continuing 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 | ||
Non-cash continuing investing activities include the following: | |||
Proceeds from the relinquishment of investment securities available-for-sale | 369,873 | ||
Proceeds from the receipt of deed in lieu of foreclosure on loan | 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 continuing financing activities include the following: | |||
Repayment of repurchase agreements from the relinquishment of investment securities available-for-sale | (369,873) | ||
Common Stock | |||
Non-cash continuing financing activities include the following: | |||
Distributions accrued but not paid | $ 8,767 | $ 5,540 | |
Preferred Stock | |||
Non-cash continuing financing activities include the following: | |||
Distributions accrued but not paid | $ 1,725 | $ 1,725 | $ 1,725 |
RESTRICTED CASH (Details)
RESTRICTED CASH (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | $ 38,386 | $ 14,476 |
Cash held by consolidated CRE securitizations, CDOs and CLOs | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | 38,353 | 532 |
Restricted cash pledged with minimum reserve balance requirements | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | $ 33 | 22 |
Margin posted on interest rate swaps and [warehouse financing facilities] | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | $ 13,922 |
LOANS (Summary of Loans) (Detai
LOANS (Summary of Loans) (Details) | 1 Months Ended | ||||
Jan. 31, 2021Loan | Dec. 31, 2020USD ($)Loan | Jan. 01, 2020USD ($) | Dec. 31, 2019USD ($)Loan | Dec. 31, 2018USD ($) | |
Receivables With Imputed Interest [Line Items] | |||||
Allowance for Credit Losses | $ (34,310,000) | $ (1,460,000) | |||
Commercial Real Estate Loans | |||||
Receivables With Imputed Interest [Line Items] | |||||
Principal, Loans held for investment | 1,548,072,000 | $ 1,800,000,000 | 1,799,259,000 | ||
Unamortized (Discount) Premium, net | (6,080,000) | (7,814,000) | |||
Amortized Cost, Loans held for investment | 1,541,992,000 | 1,791,445,000 | |||
Allowance for Credit Losses | (34,310,000) | (1,460,000) | $ (1,401,000) | ||
Carrying Value, Loans held for investment | 1,507,682,000 | 1,789,985,000 | |||
Loan origination fees | 5,700,000 | 9,100,000 | |||
Deferred amendment fees | 495,000 | 72,000 | |||
Unamortized loan acquisition costs | $ 118,000 | 1,300,000 | |||
Commercial Real Estate Loans | London Interbank Offered Rate (LIBOR) | |||||
Receivables With Imputed Interest [Line Items] | |||||
Loan receivable, floor interest rate | 1.88% | ||||
Commercial Real Estate Loans | Whole Loans | |||||
Receivables With Imputed Interest [Line Items] | |||||
Principal, Loans held for investment | $ 1,515,722,000 | 1,768,322,000 | |||
Unamortized (Discount) Premium, net | (6,144,000) | (7,725,000) | |||
Amortized Cost, Loans held for investment | 1,509,578,000 | 1,760,597,000 | |||
Allowance for Credit Losses | (32,283,000) | (1,460,000) | |||
Carrying Value, Loans held for investment | $ 1,477,295,000 | $ 1,759,137,000 | |||
Quantity | Loan | 95 | 112 | |||
Loans held for investment, unfunded loan commitments | $ 67,200,000 | $ 98,000,000 | |||
Commercial Real Estate Loans | Whole Loans | Subsequent Event | |||||
Receivables With Imputed Interest [Line Items] | |||||
Quantity | Loan | 2 | ||||
Loan maturity, month and year | 2021-01 | ||||
Loan maturity, extension period | 1 year | ||||
Commercial Real Estate Loans | Whole Loans | London Interbank Offered Rate (LIBOR) | Minimum | |||||
Receivables With Imputed Interest [Line Items] | |||||
Contractual Interest Rates | 2.70% | 2.70% | |||
Commercial Real Estate Loans | Whole Loans | London Interbank Offered Rate (LIBOR) | Maximum | |||||
Receivables With Imputed Interest [Line Items] | |||||
Contractual Interest Rates | 9.00% | 6.25% | |||
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 | (301,000) | ||||
Carrying Value, Loans held for investment | $ 4,399,000 | $ 4,700,000 | |||
Quantity | Loan | 1 | 1 | |||
Contractual Interest Rates | 10.00% | 10.00% | |||
Commercial Real Estate Loans | Preferred equity investment | |||||
Receivables With Imputed Interest [Line Items] | |||||
Principal, Loans held for investment | $ 27,650,000 | $ 26,237,000 | |||
Unamortized (Discount) Premium, net | 64,000 | (89,000) | |||
Amortized Cost, Loans held for investment | 27,714,000 | 26,148,000 | |||
Allowance for Credit Losses | (1,726,000) | ||||
Carrying Value, Loans held for investment | $ 25,988,000 | $ 26,148,000 | |||
Quantity | Loan | 2 | 2 | |||
Loans held for investment, unfunded loan commitments | $ 2,500,000 | $ 3,000,000 | |||
Loans receivable, contracted interest rate | 8.00% | ||||
Commercial Real Estate Loans | Preferred equity investment | Minimum | |||||
Receivables With Imputed Interest [Line Items] | |||||
Contractual Interest Rates | 11.00% | 11.00% | |||
Commercial Real Estate Loans | Preferred equity investment | Maximum | |||||
Receivables With Imputed Interest [Line Items] | |||||
Contractual Interest Rates | 11.50% | 11.50% | |||
Commercial Real Estate Loans | Whole Loans in Default | |||||
Receivables With Imputed Interest [Line Items] | |||||
Amortized Cost, Loans held for investment | $ 39,700,000 | $ 11,500,000 | |||
Quantity | Loan | 3 | 1 |
LOANS (Commercial Real Estate L
LOANS (Commercial Real Estate Loans, at Amortized Cost) (Details) $ in Thousands | Dec. 31, 2020USD ($)Loan | Dec. 31, 2019USD ($)Loan |
Commercial Real Estate Loans | ||
Receivables With Imputed Interest [Line Items] | ||
Amortized Cost, Loans held for investment | $ 1,541,992 | $ 1,791,445 |
Commercial Real Estate Loans | Whole Loans in Default | ||
Receivables With Imputed Interest [Line Items] | ||
Amortized Cost, Loans held for investment | $ 39,700 | $ 11,500 |
Number of loans | Loan | 3 | 1 |
Commercial Real Estate Debt Investments | ||
Receivables With Imputed Interest [Line Items] | ||
Year one | $ 599,053 | $ 319,868 |
Year two | 547,091 | 737,478 |
Year three and Thereafter | 356,105 | 722,595 |
Amortized Cost, Loans held for investment | 1,502,249 | 1,779,941 |
Commercial Real Estate Debt Investments | Mezzanine loan | ||
Receivables With Imputed Interest [Line Items] | ||
Year three and Thereafter | 4,700 | 4,700 |
Amortized Cost, Loans held for investment | 4,700 | 4,700 |
Commercial Real Estate Debt Investments | Preferred equity investment | ||
Receivables With Imputed Interest [Line Items] | ||
Year two | 6,452 | |
Year three and Thereafter | 21,262 | 26,148 |
Amortized Cost, Loans held for investment | 27,714 | 26,148 |
Commercial Real Estate Debt Investments | CRE whole loans | ||
Receivables With Imputed Interest [Line Items] | ||
Year one | 599,053 | 319,868 |
Year two | 540,639 | 737,478 |
Year three and Thereafter | 330,143 | 691,747 |
Amortized Cost, Loans held for investment | 1,469,835 | 1,749,093 |
Commercial Real Estate Debt Investments | CRE whole loans | Whole Loan in Extension Option | ||
Receivables With Imputed Interest [Line Items] | ||
Year one | 112,400 | 105,500 |
Year two | 125,100 | 68,000 |
Year three and Thereafter | $ 1,300,000 | $ 1,600,000 |
LOANS (Details)
LOANS (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Variable Interest Entity [Line Items] | ||
Principal paydowns receivable | $ 4.3 | $ 19.5 |
Commercial Real Estate Loans | Southwest Region | ||
Variable Interest Entity [Line Items] | ||
Concentration of loan portfolio risk | 17.90% | 19.40% |
Commercial Real Estate Loans | Mountain Region | ||
Variable Interest Entity [Line Items] | ||
Concentration of loan portfolio risk | 21.40% | 19.50% |
Commercial Real Estate Loans | Southeast Region | ||
Variable Interest Entity [Line Items] | ||
Concentration of loan portfolio risk | 16.10% | 17.60% |
FINANCING RECEIVABLES (Activity
FINANCING RECEIVABLES (Activity in Allowance for Credit Losses) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Allowance for credit losses: | |||
Allowance for credit losses at beginning of year | $ 1,460,000 | ||
Provision for credit losses | 30,815,000 | $ 58,000 | $ (1,595,000) |
Allowance for credit losses at end of year | 34,310,000 | 1,460,000 | |
Commercial Real Estate Loans | |||
Allowance for credit losses: | |||
Allowance for credit losses at beginning of year | 1,460,000 | 1,401,000 | |
Provision for credit losses | 30,815,000 | 59,000 | |
Charge off of realized loss on sale of loan | (997,000) | 0 | |
Allowance for credit losses at end of year | 34,310,000 | $ 1,460,000 | $ 1,401,000 |
Commercial Real Estate Loans | ASU 2016-13 (CECL Guidance) | |||
Allowance for credit losses: | |||
Adoption of the new CECL guidance | $ 3,032,000 |
FINANCING RECEIVABLES (Activi_2
FINANCING RECEIVABLES (Activity in Allowance for Credit Losses) (Parenthetical) (Details) - Commercial Real Estate Loans - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Accounts Notes And Loans Receivable [Line Items] | ||
Amortization cost of recovery of credit losses | $ 0 | $ 0 |
Carrying value of recovery of credit losses | 0 | 0 |
Payments received from credit losses | 1,000 | |
Realized loss related to allowance for credit loss | 997,000 | |
Charge off of realized loss on sale of loan | $ 997,000 | $ 0 |
FINANCING RECEIVABLES (Details)
FINANCING RECEIVABLES (Details) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Nov. 30, 2020USD ($)Contract | Jun. 30, 2020USD ($)Note | Dec. 31, 2020USD ($)Loan | Dec. 31, 2020USD ($)LoanContractBorrower | Dec. 31, 2019USD ($)Loan | |
Accounts Notes And Loans Receivable [Line Items] | |||||
Reversal of CECL allowance | $ 8,000,000 | ||||
Number of borrowers | Borrower | 25 | ||||
Extension Agreements | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
No of extension agreements | Contract | 18 | ||||
Weighted average extension period of contracts | 10 months | ||||
Forbearance Agreements | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
No of extension agreements | Contract | 13 | ||||
Weighted average extension period of contracts | 5 months | ||||
Number of borrowers | Borrower | 2 | ||||
Number of borrowers, now current | Borrower | 3 | ||||
Number of borrowers, default | Borrower | 1 | ||||
Commercial Real Estate Loans | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Number of notes receivable sold | Note | 1 | ||||
Proceeds from sale of notes receivable | $ 17,400,000 | ||||
Realized loss on sale of notes receivable | $ 1,000,000 | ||||
Number of defaulted loans | Loan | 3 | 3 | 1 | ||
Recorded investment | $ 39,700,000 | $ 39,700,000 | $ 11,500,000 | ||
Loans and receivables | 1,541,992,000 | 1,541,992,000 | 1,791,445,000 | ||
No of extension agreements | Contract | 1 | ||||
Commercial Real Estate Debt Investments | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Fair value of assets acquired | $ 39,800,000 | ||||
Hotel Loan | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
CECL allowance | 0 | 0 | |||
Office Loan | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
CECL allowance | 1,900,000 | 1,900,000 | |||
Preferred equity investment | Commercial Real Estate Loans | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Loans and receivables | 27,714,000 | 27,714,000 | $ 26,148,000 | ||
Northeast Region | Hotel Loan | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Principal balance individually evaluated | $ 37,900,000 | 14,000,000 | 14,000,000 | ||
Northeast Region | Office Loan | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Principal balance individually evaluated | 19,900,000 | 19,900,000 | |||
Southern California | Preferred equity investment | Commercial Real Estate Loans | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Loans and receivables | 6,500,000 | $ 6,500,000 | |||
Senior loan debt service payments | $ 0 |
FINANCING RECEIVABLES (Credit R
FINANCING RECEIVABLES (Credit Risk Profiles and Allowance For Loan Losses) (Details) - Commercial Real Estate Loans - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | $ 1,541,992 | $ 1,791,445 |
Whole Loans | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 1,509,578 | 1,760,597 |
Mezzanine loan | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 4,700 | 4,700 |
Preferred equity investment | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 27,714 | 26,148 |
Rating 1 | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 0 | 0 |
Rating 1 | Whole Loans | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 0 | 0 |
Rating 1 | Mezzanine loan | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 0 | 0 |
Rating 1 | Preferred equity investment | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 0 | 0 |
Rating 2 | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 611,838 | 1,691,122 |
Rating 2 | Whole Loans | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 611,838 | 1,660,274 |
Rating 2 | Mezzanine loan | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 0 | 4,700 |
Rating 2 | Preferred equity investment | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 0 | 26,148 |
Rating 3 | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 610,360 | 96,475 |
Rating 3 | Whole Loans | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 599,208 | 96,475 |
Rating 3 | Mezzanine loan | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 4,700 | 0 |
Rating 3 | Preferred equity investment | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 6,452 | 0 |
Rating 4 | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 283,660 | 3,848 |
Rating 4 | Whole Loans | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 262,398 | 3,848 |
Rating 4 | Mezzanine loan | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 0 | 0 |
Rating 4 | Preferred equity investment | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 21,262 | 0 |
Rating 5 | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 36,134 | 0 |
Rating 5 | Whole Loans | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 36,134 | 0 |
Rating 5 | Mezzanine loan | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | 0 | 0 |
Rating 5 | Preferred equity investment | ||
Schedule Of Financing Receivables [Line Items] | ||
Loans and receivables | $ 0 | $ 0 |
FINANCING RECEIVABLES (Credit_2
FINANCING RECEIVABLES (Credit Risk Profiles and Allowance For Loan Losses) (Parenthetical) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Commercial Real Estate Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Recorded investment excluded accrued interest receivable | $ 7.3 | $ 6.7 |
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, 2020 | Dec. 31, 2019 |
Financing Receivable Recorded Investment [Line Items] | ||
Loans and receivables by origination year, 2020 | $ 264,943 | $ 697,281 |
Loans and receivables by origination year, 2019 | 623,035 | 801,185 |
Loans and receivables by origination year, 2018 | 513,839 | 239,585 |
Loans and receivables by origination year, 2017 | 111,262 | 0 |
Loans and receivables by origination year, 2016 | 0 | 21,319 |
Loans and receivables by origination year, Prior | 28,913 | 32,075 |
Loans and receivables by origination year, Total | 1,541,992 | 1,791,445 |
Whole Loans Floating Rate | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans and receivables by origination year, 2020 | 264,943 | 691,540 |
Loans and receivables by origination year, 2019 | 616,583 | 776,078 |
Loans and receivables by origination year, 2018 | 487,877 | 239,585 |
Loans and receivables by origination year, 2017 | 111,262 | 0 |
Loans and receivables by origination year, 2016 | 0 | 21,319 |
Loans and receivables by origination year, Prior | 28,913 | 32,075 |
Loans and receivables by origination year, Total | 1,509,578 | 1,760,597 |
Whole Loans Floating Rate | Rating 2 | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans and receivables by origination year, 2020 | 221,364 | 669,947 |
Loans and receivables by origination year, 2019 | 279,077 | 776,078 |
Loans and receivables by origination year, 2018 | 111,397 | 202,577 |
Loans and receivables by origination year, 2017 | 0 | 0 |
Loans and receivables by origination year, 2016 | 0 | 0 |
Loans and receivables by origination year, Prior | 0 | 11,672 |
Loans and receivables by origination year, Total | 611,838 | 1,660,274 |
Whole Loans Floating Rate | Rating 3 | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans and receivables by origination year, 2020 | 43,579 | 21,593 |
Loans and receivables by origination year, 2019 | 246,073 | 0 |
Loans and receivables by origination year, 2018 | 246,944 | 37,008 |
Loans and receivables by origination year, 2017 | 45,142 | 0 |
Loans and receivables by origination year, 2016 | 0 | 17,471 |
Loans and receivables by origination year, Prior | 17,470 | 20,403 |
Loans and receivables by origination year, Total | 599,208 | 96,475 |
Whole Loans Floating Rate | Rating 4 | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans and receivables by origination year, 2020 | 0 | 0 |
Loans and receivables by origination year, 2019 | 77,495 | 0 |
Loans and receivables by origination year, 2018 | 129,536 | 0 |
Loans and receivables by origination year, 2017 | 46,220 | 0 |
Loans and receivables by origination year, 2016 | 0 | 3,848 |
Loans and receivables by origination year, Prior | 9,147 | 0 |
Loans and receivables by origination year, Total | 262,398 | 3,848 |
Whole Loans Floating Rate | Rating 5 | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans and receivables by origination year, 2020 | 0 | |
Loans and receivables by origination year, 2019 | 13,938 | |
Loans and receivables by origination year, 2018 | 0 | |
Loans and receivables by origination year, 2017 | 19,900 | |
Loans and receivables by origination year, 2016 | 0 | |
Loans and receivables by origination year, Prior | 2,296 | |
Loans and receivables by origination year, Total | 36,134 | |
Mezzanine loan | Rating 2 | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans and receivables by origination year, 2020 | 0 | 0 |
Loans and receivables by origination year, 2019 | 0 | 4,700 |
Loans and receivables by origination year, 2018 | 4,700 | 0 |
Loans and receivables by origination year, 2017 | 0 | 0 |
Loans and receivables by origination year, 2016 | 0 | 0 |
Loans and receivables by origination year, Prior | 0 | 0 |
Loans and receivables by origination year, Total | 4,700 | 4,700 |
Preferred equity investment | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans and receivables by origination year, 2020 | 0 | |
Loans and receivables by origination year, 2019 | 6,452 | |
Loans and receivables by origination year, 2018 | 21,262 | |
Loans and receivables by origination year, 2017 | 0 | |
Loans and receivables by origination year, 2016 | 0 | |
Loans and receivables by origination year, Prior | 0 | |
Loans and receivables by origination year, Total | 27,714 | |
Preferred equity investment | Rating 2 | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans and receivables by origination year, 2020 | 5,741 | |
Loans and receivables by origination year, 2019 | 20,407 | |
Loans and receivables by origination year, 2018 | 0 | |
Loans and receivables by origination year, 2017 | 0 | |
Loans and receivables by origination year, 2016 | 0 | |
Loans and receivables by origination year, Prior | 0 | |
Loans and receivables by origination year, Total | $ 26,148 | |
Preferred equity investment | Rating 3 | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans and receivables by origination year, 2020 | 0 | |
Loans and receivables by origination year, 2019 | 6,452 | |
Loans and receivables by origination year, 2018 | 0 | |
Loans and receivables by origination year, 2017 | 0 | |
Loans and receivables by origination year, 2016 | 0 | |
Loans and receivables by origination year, Prior | 0 | |
Loans and receivables by origination year, Total | 6,452 | |
Preferred equity investment | Rating 4 | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans and receivables by origination year, 2020 | 0 | |
Loans and receivables by origination year, 2019 | 0 | |
Loans and receivables by origination year, 2018 | 21,262 | |
Loans and receivables by origination year, 2017 | 0 | |
Loans and receivables by origination year, 2016 | 0 | |
Loans and receivables by origination year, Prior | 0 | |
Loans and receivables by origination year, Total | $ 21,262 |
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, 2020 | Dec. 31, 2019 |
Commercial Real Estate Loans | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Recorded investment excluded accrued interest receivable | $ 7.3 | $ 6.7 |
FINANCING RECEIVABLES (Loan Por
FINANCING RECEIVABLES (Loan Portfolio Aging Analysis) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Past Due | $ 11,443 | $ 11,503 |
Current | 1,530,549 | 1,779,942 |
Total Loans Receivable | 1,541,992 | 1,791,445 |
Total Loans > Than 90 days and Accruing | 11,443 | 11,503 |
30-59 Days | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Past Due | 0 | 0 |
60-89 Days | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Past Due | 0 | 0 |
Greater than 90 Days | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Past Due | 11,443 | 11,503 |
Commercial Real Estate Loans | Whole Loans | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Past Due | 11,443 | 11,503 |
Current | 1,498,135 | 1,749,094 |
Total Loans Receivable | 1,509,578 | 1,760,597 |
Total Loans > Than 90 days and Accruing | 11,443 | 11,503 |
Commercial Real Estate Loans | Mezzanine loan | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Past Due | 0 | 0 |
Current | 4,700 | 4,700 |
Total Loans Receivable | 4,700 | 4,700 |
Total Loans > Than 90 days and Accruing | 0 | 0 |
Commercial Real Estate Loans | Preferred equity investment | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Past Due | 0 | 0 |
Current | 27,714 | 26,148 |
Total Loans Receivable | 27,714 | 26,148 |
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] | ||
Past Due | 0 | 0 |
Commercial Real Estate Loans | 30-59 Days | Mezzanine loan | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Past Due | 0 | 0 |
Commercial Real Estate Loans | 30-59 Days | Preferred equity investment | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Past Due | 0 | 0 |
Commercial Real Estate Loans | 60-89 Days | Whole Loans | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Past Due | 0 | 0 |
Commercial Real Estate Loans | 60-89 Days | Mezzanine loan | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Past Due | 0 | 0 |
Commercial Real Estate Loans | 60-89 Days | Preferred equity investment | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Past Due | 0 | 0 |
Commercial Real Estate Loans | Greater than 90 Days | Whole Loans | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Past Due | 11,443 | 11,503 |
Commercial Real Estate Loans | Greater than 90 Days | Mezzanine loan | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Past Due | 0 | 0 |
Commercial Real Estate Loans | Greater than 90 Days | Preferred equity investment | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Past Due | $ 0 | $ 0 |
FINANCING RECEIVABLES (Loan P_2
FINANCING RECEIVABLES (Loan Portfolio Aging Analysis) (Parenthetical) (Details) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020USD ($)Loan | Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($)Loan | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2020USD ($)Loan | Dec. 31, 2019USD ($)Loan | Dec. 31, 2018USD ($) | |
Financing Receivable Recorded Investment Past Due [Line Items] | |||||||||||
Interest income | $ 23,072,000 | $ 24,638,000 | $ 27,243,000 | $ 33,290,000 | $ 34,524,000 | $ 39,292,000 | $ 37,138,000 | $ 33,932,000 | $ 108,243,000 | $ 144,886,000 | $ 122,779,000 |
Whole Loans In Maturity Default | |||||||||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||||||||
Number of defaulted loans | Loan | 2 | 2 | |||||||||
Recorded investment | $ 28,300,000 | $ 28,300,000 | |||||||||
Commercial Real Estate Loans | |||||||||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||||||||
Number of defaulted loans | Loan | 3 | 1 | 3 | 1 | |||||||
Recorded investment | $ 39,700,000 | $ 11,500,000 | $ 39,700,000 | $ 11,500,000 | |||||||
Recorded investment excluded accrued interest receivable | $ 7,300,000 | $ 6,700,000 | $ 7,300,000 | $ 6,700,000 | |||||||
Commercial Real Estate Loans | Whole Loans In Maturity Default | |||||||||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||||||||
Number of defaulted loans | Loan | 1 | 1 | 1 | 1 | |||||||
Recorded investment | $ 11,400,000 | $ 11,500,000 | $ 11,400,000 | $ 11,500,000 | |||||||
Interest income | $ 670,000 | $ 747,000 | $ 621,000 |
FINANCING RECEIVABLES (Summary
FINANCING RECEIVABLES (Summary of TDRs) (Details) - Commercial Real Estate Loans $ in Thousands | 1 Months Ended | 12 Months Ended |
Nov. 30, 2020Contract | Dec. 31, 2020USD ($)Contract | |
Financing Receivable Modifications [Line Items] | ||
Number of Loans | Contract | 1 | |
Whole Loans Floating Rate | ||
Financing Receivable Modifications [Line Items] | ||
Number of Loans | Contract | 2 | |
Pre-Modification Outstanding Recorded Balance | $ | $ 56,882 | |
Post-Modification Outstanding Recorded Balance | $ | $ 56,882 |
INVESTMENT IN REAL ESTATE AND_3
INVESTMENT IN REAL ESTATE AND OTHER ACQUIRED ASSETS AND ASSUMED LIABILITIES (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |
Nov. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Investment In Real Estate And Other Acquired Assets And Assumed Liabilities [Line Items] | |||
Collateralized of hotel property | $ 37,956,000 | $ 18,515,000 | |
Offsetting amortization and accretion on right of use assets and lease liabilities | 6,000 | ||
Amortization expense on intangible assets | 47,000 | ||
Amortization expense on intangible assets during 2021 | 375,000 | ||
Amortization expense on intangible assets during 2022 | 375,000 | ||
Amortization expense on intangible assets during 2023 | 355,000 | ||
Amortization expense on intangible assets during 2024 | 210,000 | ||
Amortization expense on intangible assets during 2025 | $ 210,000 | ||
CRE Whole Loan | |||
Investment In Real Estate And Other Acquired Assets And Assumed Liabilities [Line Items] | |||
Collateralized of hotel property | $ 38,000,000 | ||
Fair value of assets acquired | 39,800,000 | ||
Gain on conversion of real estate | $ 1,600,000 |
INVESTMENT IN REAL ESTATE AND_4
INVESTMENT IN REAL ESTATE AND OTHER ACQUIRED ASSETS AND ASSUMED LIABILITIES (Summary of Acquisition Date Value of Acquired Assets and Liabilities) (Details) $ in Thousands | Dec. 31, 2020USD ($) | |
Assets acquired: | ||
Investment in real estate | $ 33,924 | |
Right of use assets | 5,603 | [1] |
Intangible assets | 3,336 | [2] |
Total assets acquired | 42,863 | |
Liabilities assumed: | ||
Lease liabilities | (3,113) | |
Total liabilities assumed | (3,113) | |
Fair value of net asset acquired | 39,750 | |
Building | ||
Assets acquired: | ||
Investment in real estate | 30,787 | |
Site Improvements | ||
Assets acquired: | ||
Investment in real estate | 157 | |
FF&E | ||
Assets acquired: | ||
Investment in real estate | $ 2,980 | |
[1] | Right of use assets include a right of use asset associated with an acquired | |
[2] | Intangible assets include a franchise agreement intangible of $2.8 million and a customer list intangible asset of $477,000 at December 31, 2020. |
INVESTMENT IN REAL ESTATE AND_5
INVESTMENT IN REAL ESTATE AND OTHER ACQUIRED ASSETS AND ASSUMED LIABILITIES (Summary of Acquisition Date Value of Acquired Assets and Liabilities) (Parenthetical) (Details) | Dec. 31, 2020USD ($) |
Investment In Real Estate And Other Acquired Assets And Assumed Liabilities [Line Items] | |
Ground leases | $ 3,100,000 |
Below market lease intangible asset | 2,500,000 |
Intangible assets | 3,294,000 |
Franchise Agreement | |
Investment In Real Estate And Other Acquired Assets And Assumed Liabilities [Line Items] | |
Intangible assets | 2,800,000 |
Customer Lists | |
Investment In Real Estate And Other Acquired Assets And Assumed Liabilities [Line Items] | |
Intangible assets | $ 477,000 |
INVESTMENT IN REAL ESTATE AND_6
INVESTMENT IN REAL ESTATE AND OTHER ACQUIRED ASSETS AND ASSUMED LIABILITIES (Schedule of Investments in Real Estate and Related Intangible Assets (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Investment In Real Estate And Other Acquired Assets And Assumed Liabilities [Abstract] | |
Investment in Real Estate, Cost | $ 33,929 |
Investment in Real Estate Accumulated Depreciation & Amortization | (123) |
Investment in Real Estate, Book Value | 33,806 |
Right of use Assets, Cost | 5,603 |
Right of use Assets Accumulated Depreciation & Amortization | (11) |
Right of use Assets, Book Value | 5,592 |
Intangible Assets, Cost | 3,336 |
Intangible Assets, Accumulated Depreciation & Amortization | (42) |
Intangible Assets, Book Value | 3,294 |
Assets Acquired, Cost | 42,868 |
Assets Acquired, Accumulated Depreciation & Amortization | (176) |
Assets Acquired, Book Value | 42,692 |
Lease Liabilities, Cost | (3,113) |
Lease Liabilities, Accumulated Depreciation & Amortization | 6 |
Lease Liabilities, Book Value | (3,107) |
Liabilities Assumed, Cost | (3,113) |
Liabilities Assumed, Accumulated Depreciation & Amortization | 6 |
Liabilities Assumed, Book Value | (3,107) |
Assets Acquired and Liabilities Assumed, Cost | 39,755 |
Asset Acquired and Liabilities Assumed, Book Value | $ 39,585 |
INVESTMENT IN REAL ESTATE AND_7
INVESTMENT IN REAL ESTATE AND OTHER ACQUIRED ASSETS AND ASSUMED LIABILITIES (Schedule of Investments in Real Estate and Related Intangible Assets) (Parenthetical) (Details) | Dec. 31, 2020USD ($) |
Investment In Real Estate And Other Acquired Assets And Assumed Liabilities [Line Items] | |
Furniture and fixtures purchased for the property | $ 5,000 |
Ground leases | 3,100,000 |
Below market lease intangible asset | 2,500,000 |
Intangible assets | 3,294,000 |
Franchise Agreement | |
Investment In Real Estate And Other Acquired Assets And Assumed Liabilities [Line Items] | |
Intangible assets | 2,800,000 |
Customer Lists | |
Investment In Real Estate And Other Acquired Assets And Assumed Liabilities [Line Items] | |
Intangible assets | $ 477,000 |
INVESTMENT SECURITIES AVAILAB_3
INVESTMENT SECURITIES AVAILABLE-FOR-SALE (Schedule of Available-for-Sale Securities, Fair Value) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 514,894 | |
Unrealized Gains | 7,591 | |
Unrealized Losses | (1,771) | |
Fair Value | 520,714 | |
CMBS, Fixed Rate | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 2,080 | 132,235 |
Unrealized Gains | 6,596 | |
Unrealized Losses | (792) | |
Fair Value | $ 2,080 | 138,039 |
CMBS, Floating Rate | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 382,659 | |
Unrealized Gains | 995 | |
Unrealized Losses | (979) | |
Fair Value | $ 382,675 |
INVESTMENT SECURITIES AVAILAB_4
INVESTMENT SECURITIES AVAILABLE-FOR-SALE (Schedule of Available-for-Sale Securities, Fair Value) (Parenthetical) (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Securities, Available-for-sale [Line Items] | ||
Accrued interest receivable | $ 7,372,000 | $ 8,042,000 |
Assets pledged as collateral | 0 | 466,900,000 |
CMBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Accrued interest receivable | $ 56,000 | $ 1,100,000 |
INVESTMENT SECURITIES AVAILAB_5
INVESTMENT SECURITIES AVAILABLE-FOR-SALE (Details) | 12 Months Ended | ||
Dec. 31, 2020USD ($)position | Dec. 31, 2019USD ($)position | Dec. 31, 2018USD ($) | |
Schedule Of Trading Securities And Other Trading Assets [Line Items] | |||
Total losses | $ 186,400,000 | ||
Unrealized losses | $ 6,100,000 | ||
Positions Sold/Redeemed | position | 2 | ||
Proceeds from sale of investment securities available-for-sale | $ 37,764,000 | $ 638,000 | $ 12,081,000 |
Other than temporary impairment losses, investments | $ 0 | ||
67 CMBS | |||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | |||
Realized losses | $ 180,300,000 | ||
Positions Sold/Redeemed | position | 67 | ||
Amortized cost | $ 401,300,000 | ||
CMBS | |||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | |||
Positions Sold/Redeemed | position | 1 | ||
Proceeds from sale of investment securities available-for-sale | $ 638,000 | ||
Realized gain | $ 4,000 |
INVESTMENTS IN UNCONSOLIDATED_3
INVESTMENTS IN UNCONSOLIDATED ENTITIES (Schedule of Unconsolidated Entities) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Schedule of Equity Method Investments [Line Items] | ||||
Investments in unconsolidated entities | $ 1,548 | $ 1,548 | ||
Equity in Earnings of Unconsolidated Entities | $ 77 | 100 | $ 313 | |
Pelium Capital | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity in Earnings of Unconsolidated Entities | [1] | (182) | ||
RCM Global LLC | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity in Earnings of Unconsolidated Entities | [2] | (12) | ||
Investment in LCC Preferred Stock | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity in Earnings of Unconsolidated Entities | [3] | 411 | ||
Investments in Unconsolidated Entities | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity in Earnings of Unconsolidated Entities | 217 | |||
Investment in RCT I and II | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership percentage in VIE | [4] | 3.00% | ||
Investments in unconsolidated entities | [4] | $ 1,548 | 1,548 | |
Equity in Earnings of Unconsolidated Entities | [4] | $ 77 | $ 100 | $ 96 |
[1] | In December 2018, Pelium Capital Partners, L.P. was fully liquidated. | |||
[2] | In December 2018, RCM Global LLC was fully liquidated. | |||
[3] | The Company’s investment in LEAF Commercial Capital, Inc. (“LCC”) liquidated in July 2017 as a result of the sale of LCC. Earnings for the year ended December 31, 2018 were related to the receipt of a distribution of funds formerly held in escrow accounts established as part of the sale. | |||
[4] | During the years ended December 31, 2020 , 2019 and 2018 , dividends from the investments in RCT I and RCT II’s common shares we re recorded in other revenue. See Note 1 1 for the disclosures on the associated unsecured junior subordinated debentures . |
BORROWINGS (Schedule of Debt) (
BORROWINGS (Schedule of Debt) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | ||
Principal Outstanding | $ 1,330,985 | $ 1,891,796 |
Unamortized Issuance Costs and Discounts | 26,258 | 19,219 |
Outstanding Borrowings | $ 1,304,727 | $ 1,872,577 |
Weighted Average Borrowing Rate | 2.83% | 3.45% |
Weighted Average Remaining Maturity | 13 years | 7 years 4 months 24 days |
Value of Collateral | $ 1,537,573 | $ 2,170,546 |
XAN 2018-RSO6 Senior Notes | ||
Debt Instrument [Line Items] | ||
Principal Outstanding | 177,118 | |
Unamortized Issuance Costs and Discounts | 1,352 | |
Outstanding Borrowings | $ 175,766 | |
Weighted Average Borrowing Rate | 3.17% | |
Weighted Average Remaining Maturity | 15 years 6 months | |
Value of Collateral | $ 293,890 | |
XAN 2019-RSO7 Senior Notes | ||
Debt Instrument [Line Items] | ||
Principal Outstanding | 415,621 | 575,679 |
Unamortized Issuance Costs and Discounts | 2,861 | 5,007 |
Outstanding Borrowings | $ 412,760 | $ 570,672 |
Weighted Average Borrowing Rate | 1.60% | 3.03% |
Weighted Average Remaining Maturity | 15 years 3 months 18 days | 16 years 3 months 18 days |
Value of Collateral | $ 516,979 | $ 687,037 |
XAN 2020-RSO8 Senior Notes | ||
Debt Instrument [Line Items] | ||
Principal Outstanding | 388,459 | |
Unamortized Issuance Costs and Discounts | 4,164 | |
Outstanding Borrowings | $ 384,295 | |
Weighted Average Borrowing Rate | 1.62% | |
Weighted Average Remaining Maturity | 14 years 2 months 12 days | |
Value of Collateral | $ 475,347 | |
XAN 2020-RSO9 Senior Notes | ||
Debt Instrument [Line Items] | ||
Principal Outstanding | 234,731 | |
Unamortized Issuance Costs and Discounts | 3,857 | |
Outstanding Borrowings | $ 230,874 | |
Weighted Average Borrowing Rate | 3.31% | |
Weighted Average Remaining Maturity | 16 years 3 months 18 days | |
Value of Collateral | $ 285,862 | |
Unsecured Junior Subordinated Debentures | ||
Debt Instrument [Line Items] | ||
Principal Outstanding | 51,548 | 51,548 |
Unamortized Issuance Costs and Discounts | 0 | 0 |
Outstanding Borrowings | $ 51,548 | $ 51,548 |
Weighted Average Borrowing Rate | 4.18% | 5.90% |
Weighted Average Remaining Maturity | 15 years 8 months 12 days | 16 years 8 months 12 days |
Value of Collateral | $ 0 | $ 0 |
4.50% Convertible Senior Notes | ||
Debt Instrument [Line Items] | ||
Principal Outstanding | 143,750 | 143,750 |
Unamortized Issuance Costs and Discounts | 6,498 | 10,137 |
Outstanding Borrowings | $ 137,252 | $ 133,613 |
Weighted Average Borrowing Rate | 4.50% | 4.50% |
Weighted Average Remaining Maturity | 1 year 7 months 6 days | 2 years 7 months 6 days |
Value of Collateral | $ 0 | $ 0 |
Senior Unsecured Notes Due 2027 | ||
Debt Instrument [Line Items] | ||
Principal Outstanding | 50,000 | |
Unamortized Issuance Costs and Discounts | 3,574 | |
Outstanding Borrowings | $ 46,426 | |
Weighted Average Borrowing Rate | 12.00% | |
Weighted Average Remaining Maturity | 6 years 7 months 6 days | |
Value of Collateral | $ 0 | |
Senior Secured Financing Facility | ||
Debt Instrument [Line Items] | ||
Principal Outstanding | 33,360 | |
Unamortized Issuance Costs and Discounts | 4,046 | |
Outstanding Borrowings | $ 29,314 | |
Weighted Average Borrowing Rate | 5.75% | |
Weighted Average Remaining Maturity | 6 years 7 months 6 days | |
Value of Collateral | $ 239,385 | |
CRE - Term Warehouse Financing Facilities | ||
Debt Instrument [Line Items] | ||
Principal Outstanding | 13,516 | 547,619 |
Unamortized Issuance Costs and Discounts | 1,258 | 2,714 |
Outstanding Borrowings | $ 12,258 | $ 544,905 |
Weighted Average Borrowing Rate | 2.66% | 3.71% |
Weighted Average Remaining Maturity | 299 days | 1 year 2 months 12 days |
Value of Collateral | $ 20,000 | $ 705,221 |
8.00% Convertible Senior Notes | ||
Debt Instrument [Line Items] | ||
Principal Outstanding | 21,182 | |
Unamortized Issuance Costs and Discounts | 9 | |
Outstanding Borrowings | $ 21,173 | |
Weighted Average Borrowing Rate | 8.00% | |
Weighted Average Remaining Maturity | 15 days | |
Value of Collateral | $ 0 | |
CMBS - Short Term Repurchase Agreements | ||
Debt Instrument [Line Items] | ||
Principal Outstanding | 374,900 | |
Unamortized Issuance Costs and Discounts | 0 | |
Outstanding Borrowings | $ 374,900 | |
Weighted Average Borrowing Rate | 2.87% | |
Weighted Average Remaining Maturity | 21 days | |
Value of Collateral | $ 484,398 |
BORROWINGS (Schedule of Debt)_2
BORROWINGS (Schedule of Debt) (Parenthetical) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Aug. 31, 2017 | Jan. 31, 2015 |
Debt Instrument [Line Items] | |||||
Accrued interest costs | $ 6,036 | $ 4,408 | |||
4.50% Convertible Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Interest rate, stated percentage | 4.50% | 4.50% | 4.50% | 4.50% | |
8.00% Convertible Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Interest rate, stated percentage | 8.00% | 8.00% | 8.00% | 8.00% | |
CRE - Term Warehouse Financing Facilities | |||||
Debt Instrument [Line Items] | |||||
Accrued interest costs | $ 16 | $ 810 | |||
CMBS - Short Term Repurchase Agreements | |||||
Debt Instrument [Line Items] | |||||
Accrued interest costs | $ 470 |
BORROWINGS (Securitization) (De
BORROWINGS (Securitization) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
XAN 2019-RSO7 Senior Notes | |
Debt Instrument [Line Items] | |
Closing Date | 2019-04 |
Maturity Date | 2036-04 |
End of Designated Principal Reinvestment Period | 2022-04 |
Total Note Paydowns from Closing Date through December 31, 2020 | $ 170,190 |
XAN 2020-RSO8 Senior Notes | |
Debt Instrument [Line Items] | |
Closing Date | 2020-03 |
Maturity Date | 2035-03 |
End of Designated Principal Reinvestment Period | 2023-03 |
Total Note Paydowns from Closing Date through December 31, 2020 | $ 47,284 |
XAN 2020-RSO9 Senior Notes | |
Debt Instrument [Line Items] | |
Closing Date | 2020-09 |
Maturity Date | 2037-04 |
Total Note Paydowns from Closing Date through December 31, 2020 | $ 11,063 |
BORROWINGS (Securitization) (Pa
BORROWINGS (Securitization) (Parenthetical) (Details) $ in Millions | Dec. 31, 2020USD ($) |
XAN 2020-RSO9 Senior Notes | |
Debt Instrument [Line Items] | |
Future advance reserve account to unfunded commitments | $ 18.6 |
BORROWINGS (RCC 2017-CRE5) (Det
BORROWINGS (RCC 2017-CRE5) (Details) $ in Millions | Jul. 30, 2017USD ($) |
RCC 2017-CRE5 Senior Notes | |
Debt Instrument [Line Items] | |
Closing transaction amount | $ 376.7 |
BORROWINGS (XAN 2018-RSO6) (Det
BORROWINGS (XAN 2018-RSO6) (Details) $ in Millions | Jun. 30, 2018USD ($) |
XAN 2018-RSO6 Senior Notes | |
Debt Instrument [Line Items] | |
Closing transaction amount | $ 514.2 |
BORROWINGS (XAN 2019-RSO7) (Det
BORROWINGS (XAN 2019-RSO7) (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |
Apr. 30, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | |||
Face amount of debt issued | $ 41,572 | $ 919,805 | |
XAN 2019-RSO7 Senior Notes | Senior Notes | |||
Debt Instrument [Line Items] | |||
Closing transaction amount | $ 687,200 | ||
Face amount of debt issued | 585,800 | ||
Maturity Date | 2036-04 | ||
XAN 2019-RSO7 Senior Notes | Senior Notes | Subsidiary of ACRES Realty Funding, Inc | |||
Debt Instrument [Line Items] | |||
Ownership interest amount in principal balance of outstanding debt | $ 10,000 | ||
Interest ownership percentage on outstanding debt | 100.00% | ||
XAN 2019-RSO7 Senior Notes | Senior Notes | Preferred Stock | Subsidiary of ACRES Realty Funding, Inc | |||
Debt Instrument [Line Items] | |||
Interest ownership percentage on outstanding preferred shares | 100.00% | ||
XAN 2019-RSO7 Senior Notes | Senior Notes | Debt Instrument, Class D | |||
Debt Instrument [Line Items] | |||
Face amount of debt issued | $ 49,000 | ||
XAN 2019-RSO7 Senior Notes | Senior Notes | Debt Instrument, Class D | London Interbank Offered Rate (LIBOR) | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 2.70% | ||
XAN 2019-RSO7 Senior Notes | Senior Notes | Debt Instrument, Class D | London Interbank Offered Rate (LIBOR) | July 2024 | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 3.20% | ||
XAN 2019-RSO7 Senior Notes | Senior Notes | Debt Instrument, Class D | Subsidiary of ACRES Realty Funding, Inc | |||
Debt Instrument [Line Items] | |||
Interest ownership percentage on outstanding debt | 20.40% | ||
XAN 2019-RSO7 Senior Notes | Senior Notes | Debt Instrument, Class E and F | Subsidiary of ACRES Realty Funding, Inc | |||
Debt Instrument [Line Items] | |||
Interest ownership percentage on outstanding debt | 100.00% | ||
XAN 2019-RSO7 Senior Notes | Senior Notes | Debt Instrument, Class A | |||
Debt Instrument [Line Items] | |||
Face amount of debt issued | $ 390,000 | ||
XAN 2019-RSO7 Senior Notes | Senior Notes | Debt Instrument, Class A | London Interbank Offered Rate (LIBOR) | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1.00% | ||
XAN 2019-RSO7 Senior Notes | Senior Notes | Debt Instrument, Class A | London Interbank Offered Rate (LIBOR) | April 2024 | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1.25% | ||
XAN 2019-RSO7 Senior Notes | Senior Notes | Debt Instrument, Class A-S | |||
Debt Instrument [Line Items] | |||
Face amount of debt issued | $ 70,400 | ||
XAN 2019-RSO7 Senior Notes | Senior Notes | Debt Instrument, Class A-S | April 2024 | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1.75% | ||
XAN 2019-RSO7 Senior Notes | Senior Notes | Debt Instrument, Class A-S | London Interbank Offered Rate (LIBOR) | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1.50% | ||
XAN 2019-RSO7 Senior Notes | Senior Notes | Debt Instrument, Class B | |||
Debt Instrument [Line Items] | |||
Face amount of debt issued | $ 33,500 | ||
XAN 2019-RSO7 Senior Notes | Senior Notes | Debt Instrument, Class B | London Interbank Offered Rate (LIBOR) | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1.70% | ||
XAN 2019-RSO7 Senior Notes | Senior Notes | Debt Instrument, Class B | London Interbank Offered Rate (LIBOR) | May 2024 | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 2.20% | ||
XAN 2019-RSO7 Senior Notes | Senior Notes | Debt Instrument, Class C | |||
Debt Instrument [Line Items] | |||
Face amount of debt issued | $ 42,900 | ||
XAN 2019-RSO7 Senior Notes | Senior Notes | Debt Instrument, Class C | London Interbank Offered Rate (LIBOR) | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 2.05% | ||
XAN 2019-RSO7 Senior Notes | Senior Notes | Debt Instrument, Class C | London Interbank Offered Rate (LIBOR) | June 2024 | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 2.55% |
BORROWINGS (XAN 2020-RSO8) (Det
BORROWINGS (XAN 2020-RSO8) (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | |||
Face amount of debt issued | $ 41,572 | $ 919,805 | |
XAN 2020-RSO8 Senior Notes | |||
Debt Instrument [Line Items] | |||
Closing transaction amount | $ 522,600 | ||
Face amount of debt issued | $ 435,700 | ||
Maturity Date | 2035-03 | ||
XAN 2020-RSO8 Senior Notes | Preferred Stock | Subsidiary of ACRES Realty Funding, Inc | |||
Debt Instrument [Line Items] | |||
Interest ownership percentage on outstanding preferred shares | 100.00% | ||
XAN 2020-RSO8 Senior Notes | Debt Instrument, Class D | |||
Debt Instrument [Line Items] | |||
Face amount of debt issued | $ 26,100 | ||
XAN 2020-RSO8 Senior Notes | Debt Instrument, Class D | London Interbank Offered Rate (LIBOR) | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 2.50% | ||
XAN 2020-RSO8 Senior Notes | Debt Instrument, Class D | London Interbank Offered Rate (LIBOR) | February 2025 | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 3.00% | ||
XAN 2020-RSO8 Senior Notes | Debt Instrument, Class D | Subsidiary of ACRES Realty Funding, Inc | |||
Debt Instrument [Line Items] | |||
Interest ownership percentage on outstanding debt | 100.00% | ||
XAN 2020-RSO8 Senior Notes | Debt Instrument, Class E | Subsidiary of ACRES Realty Funding, Inc | |||
Debt Instrument [Line Items] | |||
Interest ownership percentage on outstanding debt | 100.00% | ||
XAN 2020-RSO8 Senior Notes | Debt Instrument, Class F | Subsidiary of ACRES Realty Funding, Inc | |||
Debt Instrument [Line Items] | |||
Interest ownership percentage on outstanding debt | 100.00% | ||
XAN 2020-RSO8 Senior Notes | Debt Instrument, Class G | Subsidiary of ACRES Realty Funding, Inc | |||
Debt Instrument [Line Items] | |||
Interest ownership percentage on outstanding debt | 100.00% | ||
XAN 2020-RSO8 Senior Notes | Debt Instrument, Class A | |||
Debt Instrument [Line Items] | |||
Face amount of debt issued | $ 295,300 | ||
XAN 2020-RSO8 Senior Notes | Debt Instrument, Class A | London Interbank Offered Rate (LIBOR) | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1.15% | ||
XAN 2020-RSO8 Senior Notes | Debt Instrument, Class A | London Interbank Offered Rate (LIBOR) | November 2024 | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1.40% | ||
XAN 2020-RSO8 Senior Notes | Debt Instrument, Class A-S | |||
Debt Instrument [Line Items] | |||
Face amount of debt issued | $ 39,200 | ||
XAN 2020-RSO8 Senior Notes | Debt Instrument, Class A-S | London Interbank Offered Rate (LIBOR) | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1.45% | ||
XAN 2020-RSO8 Senior Notes | Debt Instrument, Class A-S | London Interbank Offered Rate (LIBOR) | December 2024 | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1.70% | ||
XAN 2020-RSO8 Senior Notes | Debt Instrument, Class B | |||
Debt Instrument [Line Items] | |||
Face amount of debt issued | $ 26,100 | ||
XAN 2020-RSO8 Senior Notes | Debt Instrument, Class B | London Interbank Offered Rate (LIBOR) | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1.75% | ||
XAN 2020-RSO8 Senior Notes | Debt Instrument, Class B | London Interbank Offered Rate (LIBOR) | January 2025 | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 2.25% | ||
XAN 2020-RSO8 Senior Notes | Debt Instrument, Class C | |||
Debt Instrument [Line Items] | |||
Face amount of debt issued | $ 32,700 | ||
XAN 2020-RSO8 Senior Notes | Debt Instrument, Class C | London Interbank Offered Rate (LIBOR) | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 2.15% | ||
XAN 2020-RSO8 Senior Notes | Debt Instrument, Class C | London Interbank Offered Rate (LIBOR) | January 2025 | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 2.65% | ||
XAN 2020-RSO8 Senior Notes | Debt Instrument, Class E | |||
Debt Instrument [Line Items] | |||
Face amount of debt issued | $ 16,300 | ||
XAN 2020-RSO8 Senior Notes | Debt Instrument, Class E | London Interbank Offered Rate (LIBOR) | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 2.80% | ||
XAN 2020-RSO8 Senior Notes | Debt Instrument, Class E | London Interbank Offered Rate (LIBOR) | February 2025 | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 3.30% |
BORROWINGS (XAN 2020-RSO9) (Det
BORROWINGS (XAN 2020-RSO9) (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | |||
Face amount of debt issued | $ 41,572 | $ 919,805 | |
XAN 2020-RSO9 Senior Notes | |||
Debt Instrument [Line Items] | |||
Closing transaction amount | $ 297,000 | ||
Face amount of debt issued | $ 245,800 | ||
Maturity Date | 2037-04 | ||
XAN 2020-RSO9 Senior Notes | Subsidiary of ACRES Realty Funding, Inc | Preferred Stock | |||
Debt Instrument [Line Items] | |||
Interest ownership percentage on outstanding preferred shares | 100.00% | ||
XAN 2020-RSO9 Senior Notes | Debt Instrument, Class E | Subsidiary of ACRES Realty Funding, Inc | |||
Debt Instrument [Line Items] | |||
Interest ownership percentage on outstanding debt | 100.00% | ||
XAN 2020-RSO9 Senior Notes | Debt Instrument, Class F | Subsidiary of ACRES Realty Funding, Inc | |||
Debt Instrument [Line Items] | |||
Interest ownership percentage on outstanding debt | 100.00% | ||
XAN 2020-RSO9 Senior Notes | Debt Instrument, Class A | |||
Debt Instrument [Line Items] | |||
Face amount of debt issued | $ 158,900 | ||
XAN 2020-RSO9 Senior Notes | Debt Instrument, Class A | London Interbank Offered Rate (LIBOR) | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 2.50% | ||
XAN 2020-RSO9 Senior Notes | Debt Instrument, Class A | London Interbank Offered Rate (LIBOR) | June 2024 | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 2.75% | ||
XAN 2020-RSO9 Senior Notes | Debt Instrument, Class A-S | |||
Debt Instrument [Line Items] | |||
Face amount of debt issued | $ 26,700 | ||
XAN 2020-RSO9 Senior Notes | Debt Instrument, Class A-S | London Interbank Offered Rate (LIBOR) | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 3.50% | ||
XAN 2020-RSO9 Senior Notes | Debt Instrument, Class A-S | London Interbank Offered Rate (LIBOR) | July 2025 | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 3.75% | ||
XAN 2020-RSO9 Senior Notes | Debt Instrument, Class B | |||
Debt Instrument [Line Items] | |||
Face amount of debt issued | $ 16,700 | ||
XAN 2020-RSO9 Senior Notes | Debt Instrument, Class B | London Interbank Offered Rate (LIBOR) | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 3.90% | ||
XAN 2020-RSO9 Senior Notes | Debt Instrument, Class B | London Interbank Offered Rate (LIBOR) | July 2025 | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 4.40% | ||
XAN 2020-RSO9 Senior Notes | Debt Instrument, Class C | |||
Debt Instrument [Line Items] | |||
Face amount of debt issued | $ 20,800 | ||
XAN 2020-RSO9 Senior Notes | Debt Instrument, Class C | London Interbank Offered Rate (LIBOR) | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 4.25% | ||
XAN 2020-RSO9 Senior Notes | Debt Instrument, Class C | London Interbank Offered Rate (LIBOR) | August 2025 | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 4.75% | ||
XAN 2020-RSO9 Senior Notes | Debt Instrument, Class D | |||
Debt Instrument [Line Items] | |||
Face amount of debt issued | $ 22,700 | ||
XAN 2020-RSO9 Senior Notes | Debt Instrument, Class D | London Interbank Offered Rate (LIBOR) | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 5.50% | ||
XAN 2020-RSO9 Senior Notes | Debt Instrument, Class D | London Interbank Offered Rate (LIBOR) | August 2025 | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 6.00% |
BORROWINGS (Unsecured Junior Su
BORROWINGS (Unsecured Junior Subordinated Debentures) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2016 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | |||
Face amount of debt issued | $ 41,572,000 | $ 919,805,000 | |
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 | 4.19% | 5.91% | |
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 | 4.16% | 5.89% | |
Unamortized debt issuance costs | $ 0 | $ 0 | |
Maturity Date | 2036-10 |
BORROWINGS (4.50% Convertible S
BORROWINGS (4.50% Convertible Senior Notes and 8.00% Convertible Senior Notes) (Details) - USD ($) | 1 Months Ended | ||||
Aug. 31, 2017 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Jan. 31, 2015 | |
Debt Instrument [Line Items] | |||||
Face amount of debt issued | $ 41,572,000 | $ 919,805,000 | |||
8.00% Convertible Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Face amount of debt issued | $ 100,000,000 | ||||
Debt instrument, interest rate, stated percentage | 8.00% | 8.00% | 8.00% | 8.00% | |
Extinguishment of debt, amount | $ 78,800,000 | ||||
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% | |
Closing price of common stock | $ 11.97 |
BORROWINGS (Schedule of Convert
BORROWINGS (Schedule of Convertible Senior Notes) (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020USD ($)$ / shares | Dec. 31, 2019USD ($) | Dec. 31, 2018 | Aug. 31, 2017 | |
Debt Instrument [Line Items] | ||||
Principal Outstanding | $ 1,330,985 | $ 1,891,796 | ||
4.50% Convertible Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Principal Outstanding | $ 143,750 | $ 143,750 | ||
Borrowing Rate | 4.50% | 4.50% | 4.50% | 4.50% |
Effective Rate | 7.43% | 7.43% | ||
Conversion Rate | 27.7222 | |||
Conversion Price | $ / shares | $ 36.06 | |||
Maturity Date | Aug. 15, 2022 |
BORROWINGS (Schedule of Conve_2
BORROWINGS (Schedule of Convertible Senior Notes) (Parenthetical) (Details) - 4.50% Convertible Senior Notes - USD ($) | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Aug. 31, 2017 | |
Debt Instrument [Line Items] | ||||
Effective interest rate | 7.43% | 7.43% | ||
Conversion principal amount | $ 1,000 | |||
Debt instrument convertible dividend threshold (in dollars per share) | $ 0.30 | |||
Borrowing Rate | 4.50% | 4.50% | 4.50% | 4.50% |
BORROWINGS (12.00% Senior Unsec
BORROWINGS (12.00% Senior Unsecured Notes Due 2027) (Details) - USD ($) | Jul. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | |||
Face amount of debt issued | $ 41,572,000 | $ 919,805,000 | |
12% Senior Unsecured Notes | |||
Debt Instrument [Line Items] | |||
Debt instrument, interest rate, stated percentage | 12.00% | ||
Note and Warrant Purchase Agreement | 12% Senior Unsecured Notes | |||
Debt Instrument [Line Items] | |||
Debt instrument, discount | $ 3,100,000 | ||
Effective interest rate | 13.65% | ||
Note and Warrant Purchase Agreement | 12% Senior Unsecured Notes | Oaktree and MassMutual | |||
Debt Instrument [Line Items] | |||
Debt instrument, maximum borrowing capacity | $ 125,000,000 | ||
Debt instrument, interest rate, stated percentage | 12.00% | ||
Debt instrument, pay-in-kind interest rate maximum percentage | 3.25% | ||
Note and Warrant Purchase Agreement | 12% Senior Unsecured Notes | Oaktree and MassMutual | Maximum | |||
Debt Instrument [Line Items] | |||
Debt instrument, unused borrowing capacity | $ 75,000,000 | ||
Note and Warrant Purchase Agreement | 12% Senior Unsecured Notes | Oaktree | |||
Debt Instrument [Line Items] | |||
Face amount of debt issued | 42,000,000 | ||
Note and Warrant Purchase Agreement | 12% Senior Unsecured Notes | MassMutual | |||
Debt Instrument [Line Items] | |||
Face amount of debt issued | $ 8,000,000 |
BORROWINGS (Senior Secured Fina
BORROWINGS (Senior Secured Financing and Term Warehouse Financing Facilities and Repurchase Agreements) (Details) $ in Thousands | Dec. 31, 2020USD ($)Loan | Dec. 31, 2019USD ($)Loan |
Debt Instrument [Line Items] | ||
Outstanding Borrowings | $ 41,572 | $ 919,805 |
Value of Collateral | $ 259,385 | $ 1,189,619 |
Weighted Average Interest Rate | 2.83% | 3.45% |
CMBS - Short-Term Repurchase Agreements | Deutsche Bank Securities Inc. | ||
Debt Instrument [Line Items] | ||
Outstanding Borrowings | $ 37,141 | |
Value of Collateral | $ 57,331 | |
Number of Positions as Collateral | Loan | 6 | |
Weighted Average Interest Rate | 3.13% | |
CMBS - Short-Term Repurchase Agreements | JP Morgan Securities LLC | ||
Debt Instrument [Line Items] | ||
Outstanding Borrowings | $ 33,703 | |
Value of Collateral | $ 42,075 | |
Number of Positions as Collateral | Loan | 13 | |
Weighted Average Interest Rate | 2.87% | |
CMBS - Short-Term Repurchase Agreements | Barclays Capital Inc. | ||
Debt Instrument [Line Items] | ||
Outstanding Borrowings | $ 87,643 | |
Value of Collateral | $ 112,939 | |
Number of Positions as Collateral | Loan | 7 | |
Weighted Average Interest Rate | 2.82% | |
CMBS - Short-Term Repurchase Agreements | RBC Capital Markets, LLC | ||
Debt Instrument [Line Items] | ||
Outstanding Borrowings | $ 34,829 | |
Value of Collateral | $ 47,081 | |
Number of Positions as Collateral | Loan | 5 | |
Weighted Average Interest Rate | 2.96% | |
CMBS - Short-Term Repurchase Agreements | RBC (Barbados) Trading Bank Corporation | ||
Debt Instrument [Line Items] | ||
Outstanding Borrowings | $ 181,584 | |
Value of Collateral | $ 224,972 | |
Number of Positions as Collateral | Loan | 30 | |
Weighted Average Interest Rate | 2.82% | |
Senior Secured Financing Facility | Massachusetts Mutual Life Insurance Company | ||
Debt Instrument [Line Items] | ||
Outstanding Borrowings | $ 29,314 | |
Value of Collateral | $ 239,385 | |
Number of Positions as Collateral | Loan | 17 | |
Weighted Average Interest Rate | 5.75% | |
CRE - Term Warehouse Financing Facilities | Wells Fargo Bank, N.A. | ||
Debt Instrument [Line Items] | ||
Outstanding Borrowings | $ 225,217 | |
Value of Collateral | $ 291,903 | |
Number of Positions as Collateral | Loan | 28 | |
Weighted Average Interest Rate | 3.70% | |
CRE - Term Warehouse Financing Facilities | Barclays Bank PLC | ||
Debt Instrument [Line Items] | ||
Outstanding Borrowings | $ 111,881 | |
Value of Collateral | $ 145,035 | |
Number of Positions as Collateral | Loan | 14 | |
Weighted Average Interest Rate | 3.99% | |
CRE - Term Warehouse Financing Facilities | JP Morgan Chase Bank, N.A. | ||
Debt Instrument [Line Items] | ||
Outstanding Borrowings | $ 12,258 | $ 207,807 |
Value of Collateral | $ 20,000 | $ 268,283 |
Number of Positions as Collateral | Loan | 1 | 17 |
Weighted Average Interest Rate | 2.66% | 3.56% |
BORROWINGS (Senior Secured Fi_2
BORROWINGS (Senior Secured Financing and Term Warehouse Financing Facilities and Repurchase Agreements) (Parenthetical) (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Unamortized issuance costs and discounts | $ 26,258,000 | $ 19,219,000 |
Senior Secured Financing Facility | Massachusetts Mutual Life Insurance Company | ||
Debt Instrument [Line Items] | ||
Unamortized issuance costs and discounts | 4,000,000 | |
CRE - Term Warehouse Financing Facilities | Wells Fargo Bank, N.A. | ||
Debt Instrument [Line Items] | ||
Unamortized issuance costs and discounts | 607,000 | |
CRE - Term Warehouse Financing Facilities | Barclays Bank PLC | ||
Debt Instrument [Line Items] | ||
Unamortized issuance costs and discounts | 817,000 | |
CRE - Term Warehouse Financing Facilities | JP Morgan Chase Bank, N.A. | ||
Debt Instrument [Line Items] | ||
Unamortized issuance costs and discounts | 1,300,000 | $ 1,300,000 |
Interest Receivable | JP Morgan Chase Bank, N.A. | ||
Debt Instrument [Line Items] | ||
Unamortized issuance costs and discounts | $ 678,000 |
BORROWINGS (Amount at Risk Unde
BORROWINGS (Amount at Risk Under Warehouse Financing Facilities) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | ||
Weighted Average Remaining Maturity | 13 years | 7 years 4 months 24 days |
Weighted Average Interest Rate | 2.83% | 3.45% |
CRE - Term Warehouse Financing Facilities | ||
Debt Instrument [Line Items] | ||
Weighted Average Remaining Maturity | 299 days | 1 year 2 months 12 days |
Weighted Average Interest Rate | 2.66% | 3.71% |
Linked and Non-linked Transactions | CRE - Term Warehouse Financing Facilities | JP Morgan Chase Bank, N.A. | ||
Debt Instrument [Line Items] | ||
Amount at Risk | $ 6,559 | |
Weighted Average Remaining Maturity | 299 days | |
Weighted Average Interest Rate | 2.66% |
BORROWINGS (Senior Secured Fi_3
BORROWINGS (Senior Secured Financing Facility) (Details) - USD ($) | Jul. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | |||
Face amount of debt issued | $ 41,572,000 | $ 919,805,000 | |
Loan and Servicing Agreement | Asset-based Revolving Loan 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% | ||
Line of credit facility, initial availability period | 2 years | ||
Line of credit facility, unused commitment fee | 0.50% | ||
Line of credit facility, frequency of commitment fee payment | monthly | ||
Maximum commitment drawn percentage to be maintained to avoid unused commitment fee | 75.00% | ||
Percentage of loan to collateral value | 55.00% | ||
Loan and Servicing Agreement | Asset-based Revolving Loan Facility | MassMutual and Other Lenders | If Borrower Obtains Rating of BBB or Higher by October 31, 2020 | |||
Debt Instrument [Line Items] | |||
Line of credit facility, maturity date | Jul. 31, 2027 |
BORROWINGS (CRE - Term Warehous
BORROWINGS (CRE - Term Warehouse Financing Facilities) (Details) - CRE - Term Warehouse Financing Facilities | 1 Months Ended | ||||||
Mar. 31, 2021 | Oct. 31, 2020USD ($)extension | Sep. 30, 2020USD ($) | Jul. 31, 2020 | Oct. 31, 2018USD ($)extension | Jul. 31, 2018USD ($)extension | Apr. 30, 2018USD ($) | |
Wells Fargo Bank, N.A. | |||||||
Debt Instrument [Line Items] | |||||||
Maximum facility amount | $ 250,000,000 | $ 400,000,000 | |||||
Debt extended maturity date | Oct. 2, 2021 | Oct. 3, 2020 | Sep. 3, 2020 | ||||
Number of exercised extended options | extension | 3 | ||||||
Extended termination period | 1 year | ||||||
Wells Fargo Bank, N.A. | Line of Credit | |||||||
Debt Instrument [Line Items] | |||||||
Maximum facility amount | $ 400,000,000 | ||||||
Maturity Date | 2020-07 | ||||||
Number of options to extend | extension | 3 | ||||||
Option to extend, term | 1 year | ||||||
Wells Fargo Bank, N.A. | London Interbank Offered Rate (LIBOR) | Minimum | Line of Credit | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 1.75% | ||||||
Wells Fargo Bank, N.A. | London Interbank Offered Rate (LIBOR) | Maximum | Line of Credit | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 2.50% | ||||||
Barclays Bank PLC | Line of Credit | |||||||
Debt Instrument [Line Items] | |||||||
Maximum facility amount | $ 250,000,000 | ||||||
Maturity Date | 2021-04 | ||||||
Option to extend, term | 1 year | ||||||
Barclays Bank PLC | Line of Credit | Forecast | |||||||
Debt Instrument [Line Items] | |||||||
Debt extended maturity month and year | 2021-10 | ||||||
Barclays Bank PLC | London Interbank Offered Rate (LIBOR) | Minimum | Line of Credit | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 2.00% | ||||||
Barclays Bank PLC | London Interbank Offered Rate (LIBOR) | Maximum | Line of Credit | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 2.50% | ||||||
JP Morgan Chase Bank, N.A. | Line of Credit | |||||||
Debt Instrument [Line Items] | |||||||
Maximum facility amount | $ 250,000,000 | ||||||
Maturity Date | 2021-10 | ||||||
Number of options to extend | extension | 2 | ||||||
Option to extend, term | 1 year | ||||||
Guaranty Agreement, maximum percentage of then current unpaid aggregate repurchase price of all purchased assets | 25.00% | ||||||
JP Morgan Chase Bank, N.A. | London Interbank Offered Rate (LIBOR) | Minimum | Line of Credit | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 2.00% | ||||||
JP Morgan Chase Bank, N.A. | London Interbank Offered Rate (LIBOR) | Maximum | Line of Credit | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 2.25% |
BORROWINGS (CMBS - Short-Term R
BORROWINGS (CMBS - Short-Term Repurchase Agreements) (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Face amount of debt issued | $ 41,572,000 | $ 919,805,000 |
CMBS - Short Term Repurchase Agreements | ||
Debt Instrument [Line Items] | ||
Face amount of debt issued | $ 0 |
BORROWINGS (Contractual Commitm
BORROWINGS (Contractual Commitments) (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Debt Instrument [Line Items] | |
Total | $ 1,330,985 |
2021 | 13,516 |
2022 | 143,750 |
2023 | 0 |
2024 | 0 |
2025 and Thereafter | 1,173,719 |
CRE securitizations | |
Debt Instrument [Line Items] | |
Total | 1,038,811 |
2021 | 0 |
2022 | 0 |
2023 | 0 |
2024 | 0 |
2025 and Thereafter | 1,038,811 |
Unsecured Junior Subordinated Debentures | |
Debt Instrument [Line Items] | |
Total | 51,548 |
2021 | 0 |
2022 | 0 |
2023 | 0 |
2024 | 0 |
2025 and Thereafter | 51,548 |
Convertible Debt | 4.50% Convertible Senior Notes | |
Debt Instrument [Line Items] | |
Total | 143,750 |
2021 | 0 |
2022 | 143,750 |
2023 | 0 |
2024 | 0 |
2025 and Thereafter | 0 |
Senior Unsecured Notes Due 2027 | |
Debt Instrument [Line Items] | |
Total | 50,000 |
2021 | 0 |
2022 | 0 |
2023 | 0 |
2024 | 0 |
2025 and Thereafter | 50,000 |
Senior Secured Financing Facility | |
Debt Instrument [Line Items] | |
Total | 33,360 |
2021 | 0 |
2022 | 0 |
2023 | 0 |
2024 | 0 |
2025 and Thereafter | 33,360 |
CRE - Term Warehouse Financing Facilities | |
Debt Instrument [Line Items] | |
Total | 13,516 |
2021 | 13,516 |
2022 | 0 |
2023 | 0 |
2024 | 0 |
2025 and Thereafter | $ 0 |
SHARE ISSUANCE AND REPURCHASE (
SHARE ISSUANCE AND REPURCHASE (Details) - USD ($) | Jul. 31, 2020 | Feb. 28, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Mar. 11, 2021 | Nov. 30, 2020 |
Class Of Stock [Line Items] | |||||||
Shares repurchased during period, value | $ 5,400,000 | $ 0 | $ 0 | ||||
Shares repurchased during period, shares | 535,485 | ||||||
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 | ||||||
Date from which remaining unissued warrants can be issued | Jan. 31, 2022 | ||||||
Warrants to purchase additional shares of common stock | 699,992 | ||||||
Warrants expiration term | 7 years | ||||||
Note and Warrant Purchase Agreement | Oaktree and MassMutual | Maximum | |||||||
Class Of Stock [Line Items] | |||||||
Aggregate purchase of common stock warrants | 1,200,000 | ||||||
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 | ||||||
Subsequent Event | |||||||
Class Of Stock [Line Items] | |||||||
Shares repurchased during period, value | $ 6,900,000 | ||||||
Shares repurchased during period, shares | 565,285 | ||||||
Equity and Debt Securities Repurchase Program | |||||||
Class Of Stock [Line Items] | |||||||
Stock repurchase program, authorized amount (up to) | $ 20,000,000 | ||||||
Stock repurchase program, remaining authorized repurchase amount | $ 14,600,000 | ||||||
Equity and Debt Securities Repurchase Program | Subsequent Event | |||||||
Class Of Stock [Line Items] | |||||||
Stock repurchase program, authorized amount (up to) | $ 20,000,000 | ||||||
Stock repurchase program, remaining authorized repurchase amount | $ 7,700,000 | ||||||
8.625% Series C Preferred Stock | |||||||
Class Of Stock [Line Items] | |||||||
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, liquidation preference (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) | 1 Months Ended | 12 Months Ended | |||
Jun. 30, 2019shares | May 31, 2014shares | Dec. 31, 2020USD ($)Directorshares | Dec. 31, 2019USD ($)Directorshares | Dec. 31, 2018USD ($)Director | |
Manager Pursuant To Management Agreement | Exantas Capital Corp | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Cash awards, percentage (up to) | 75.00% | ||||
Common stock awards, percentage (at least) | 25.00% | ||||
Incentive management fee pursuant to the management agreement | $ 0 | $ 606,000,000 | $ 0 | ||
Incentive management fee paid or payable in cash pursuant to the management agreement | 455,000,000 | ||||
Incentive management fee paid or payable in common stock pursuant to the management agreement | $ 151,000,000 | ||||
Manager Pursuant To Management Agreement | Exantas Capital Corp | Common Stock | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Shares issued pursuant to the management agreement (in shares) | shares | 4,435 | ||||
Stock Options | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Grants in period (in shares) | shares | 0 | 0 | |||
Contractual term | 10 years | ||||
Stock options expiration year | 2021 | ||||
Non-Employees | Restricted Stock | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Estimated fair value of shares granted | $ 2,100,000 | $ 2,000,000 | $ 2,000,000 | ||
Number of non employee directors granted shares | Director | 8 | 8 | 8 | ||
Payment award, grant date fair value | $ 255,000 | $ 300,000 | $ 255,000 | ||
Compensation cost not yet recognized | $ 0 | $ 1,100,000 | |||
Weighted average remaining contractual term | 1 year 9 months 18 days | ||||
2007 Omnibus Equity Compensation Plan | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Number of share options authorized for issue (in shares) | shares | 1,591,666 | 1,091,666 | |||
Share based compensation expiration period | 2029-06 | 2024-05 |
SHARE-BASED COMPENSATION (Commo
SHARE-BASED COMPENSATION (Common Stock Activity) (Details) - Restricted Stock | 12 Months Ended |
Dec. 31, 2020shares | |
January 21, 2020 | |
Restricted common stock transactions | |
Stock-based compensation (in shares) | 59,255 |
Vesting per Year | 33.30% |
February 3, 2020 | |
Restricted common stock transactions | |
Stock-based compensation (in shares) | 947 |
Vesting per Year | 100.00% |
March 9, 2020 | |
Restricted common stock transactions | |
Stock-based compensation (in shares) | 3,614 |
Vesting per Year | 100.00% |
June 1, 2020 | |
Restricted common stock transactions | |
Stock-based compensation (in shares) | 5,477 |
Vesting per Year | 100.00% |
July 31, 2020 | |
Restricted common stock transactions | |
Stock-based compensation (in shares) | 5,231 |
Vesting per Year | 100.00% |
September 30, 2020 | |
Restricted common stock transactions | |
Stock-based compensation (in shares) | 6,379 |
Vesting per Year | 100.00% |
Non-Employee Directors | |
Restricted common stock transactions | |
Unvested shares, beginning of period (in shares) | 8,186 |
Issued (shares) | 21,648 |
Vested (shares) | (18,224) |
Unvested shares, end of period (in shares) | 11,610 |
Non-Employees | |
Restricted common stock transactions | |
Unvested shares, beginning of period (in shares) | 132,134 |
Issued (shares) | 59,254 |
Vested (shares) | (181,391) |
Forfeited (shares) | (9,997) |
Former Employees | |
Restricted common stock transactions | |
Unvested shares, beginning of period (in shares) | 140,320 |
Issued (shares) | 80,902 |
Vested (shares) | (199,615) |
Forfeited (shares) | (9,997) |
Unvested shares, end of period (in shares) | 11,610 |
SHARE-BASED COMPENSATION (Statu
SHARE-BASED COMPENSATION (Status of Vested Stock Options) (Details) - Vested $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($)$ / sharesshares | |
Number of Options | |
Outstanding beginning of period (in shares) | shares | 3,333 |
Vested (in shares) | shares | 0 |
Exercised (in shares) | shares | 0 |
Forfeited (in shares) | shares | 0 |
Expired (in shares) | shares | 0 |
Outstanding end of period (in shares) | shares | 3,333 |
Weighted Average Exercise Price | |
Outstanding beginning of period (in dollars per share) | $ / shares | $ 76.80 |
Vested (in dollars per share) | $ / shares | 0 |
Exercised (in dollars per share) | $ / shares | 0 |
Forfeited (USD per share) | $ / shares | 0 |
Expired (in shares) | $ / shares | 0 |
Outstanding end of period (in dollars per share) | $ / shares | $ 76.80 |
Weighted Average Remaining Contractual Term | 4 months 13 days |
Aggregate Intrinsic Value | $ | $ 0 |
SHARE-BASED COMPENSATION (Compo
SHARE-BASED COMPENSATION (Components of Equity Compensation Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Total equity compensation expense | $ 3,136 | $ 2,213 | $ 2,717 |
Non-Employees | Restricted Stock | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Total equity compensation expense | 2,855 | 1,937 | 2,427 |
Non-Employee Directors | Restricted Stock | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Total equity compensation expense | $ 281 | $ 276 | $ 290 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |||||||||||
Net (loss) income from continuing operations | $ 24,049 | $ 8,159 | $ (33,400) | $ (196,521) | $ 6,424 | $ 12,620 | $ 9,003 | $ 8,170 | $ (197,713) | $ 36,217 | $ 27,306 |
Net income allocated to preferred shares | (2,587) | (2,588) | (2,587) | (2,588) | (2,587) | (2,588) | (2,587) | (2,588) | (10,350) | (10,350) | (12,972) |
Consideration paid in excess of carrying value of preferred shares | (7,482) | ||||||||||
Net (loss) income from continuing operations allocable to common shares | (208,063) | 25,867 | 6,852 | ||||||||
Net (loss) income from discontinued operations, net of tax | (39) | (63) | (112) | (37) | (251) | 121 | |||||
NET (LOSS) INCOME ALLOCABLE TO COMMON SHARES | $ 21,462 | $ 5,571 | $ (35,987) | $ (199,109) | $ 3,798 | $ 9,969 | $ 6,304 | $ 5,545 | $ (208,063) | $ 25,616 | $ 6,973 |
Weighted average number of common shares outstanding: | |||||||||||
Weighted average number of common shares outstanding - basic | 10,566,904 | 10,476,704 | 10,399,440 | ||||||||
Weighted average number of warrants outstanding | 196,357 | ||||||||||
Total weighted average number of common shares outstanding - basic | 10,763,261 | 10,476,704 | 10,399,440 | ||||||||
Effect of dilutive securities - unvested restricted stock | 80,081 | 61,594 | |||||||||
Weighted average number of common shares outstanding - diluted | 10,763,261 | 10,556,785 | 10,461,034 | ||||||||
Net (loss) income per common share - basic: | |||||||||||
Continuing operations | $ 1.96 | $ 0.51 | $ (3.41) | $ (18.89) | $ 0.37 | $ 0.96 | $ 0.61 | $ 0.53 | $ (19.33) | $ 2.47 | $ 0.66 |
Discontinued operations | (0.01) | (0.01) | (0.02) | 0.01 | |||||||
TOTAL NET (LOSS) INCOME PER COMMON SHARE - BASIC | 1.96 | 0.51 | (3.41) | (18.89) | 0.37 | 0.95 | 0.60 | 0.53 | (19.33) | 2.45 | 0.67 |
Net (loss) income per common share - diluted: | |||||||||||
Continuing operations (in dollars per share) | 1.95 | 0.51 | (3.41) | (18.89) | 0.36 | 0.95 | 0.61 | 0.53 | (19.33) | 2.45 | 0.66 |
Discontinued operations (in dollars per share) | (0.01) | (0.01) | (0.02) | 0.01 | |||||||
TOTAL NET (LOSS) INCOME PER COMMON SHARE - DILUTED | $ 1.95 | $ 0.51 | $ (3.41) | $ (18.89) | $ 0.36 | $ 0.94 | $ 0.60 | $ 0.53 | $ (19.33) | $ 2.43 | $ 0.67 |
EARNINGS PER SHARE (Additional
EARNINGS PER SHARE (Additional Information) (Details) | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Aug. 31, 2017 | Jan. 31, 2015 |
4.50% Convertible Senior Notes | |||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||||
Debt instrument, interest rate, stated percentage | 4.50% | 4.50% | 4.50% | 4.50% | |
6.00% Convertible Senior Notes | |||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||||
Debt instrument, interest rate, stated percentage | 6.00% | 6.00% | 6.00% | ||
8.00% Convertible Senior Notes | |||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||||
Debt instrument, interest rate, stated percentage | 8.00% | 8.00% | 8.00% | 8.00% |
DISTRIBUTIONS (Details)
DISTRIBUTIONS (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Distributions [Abstract] | |||
REIT required taxable income distribution, percentage (at least) | 90.00% | ||
REIT taxable income distribution required for exempt federal income taxes, percentage | 100.00% | ||
Dividend per share (in dollars per share) | $ 2.85 | $ 1.425 |
DISTRIBUTIONS (Dividends Declar
DISTRIBUTIONS (Dividends Declared) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Mar. 26, 2018 | Sep. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Class Of Stock [Line Items] | |||||||||||||
Dividend Per Share | $ 2.85 | $ 1.425 | |||||||||||
Common Stock | |||||||||||||
Class Of Stock [Line Items] | |||||||||||||
Date Paid | Jan. 28, 2020 | Oct. 25, 2019 | Jul. 26, 2019 | Apr. 26, 2019 | Jan. 25, 2019 | Oct. 26, 2018 | Jul. 27, 2018 | Apr. 27, 2018 | |||||
Total Dividend Paid | $ 8,767 | $ 7,967 | $ 7,172 | $ 6,373 | $ 5,540 | $ 4,749 | $ 3,165 | $ 1,584 | |||||
Dividend Per Share | $ 0.825 | $ 0.75 | $ 0.675 | $ 0.60 | $ 0.525 | $ 0.45 | $ 0.30 | $ 0.15 | |||||
Series B Preferred Stock | |||||||||||||
Class Of Stock [Line Items] | |||||||||||||
Date Paid | Mar. 26, 2018 | ||||||||||||
Total Dividend Paid | $ 1,480 | ||||||||||||
Dividend Per Share | $ 0.320830 | ||||||||||||
Series C Preferred Stock | |||||||||||||
Class Of Stock [Line Items] | |||||||||||||
Date Paid | Feb. 1, 2021 | Jan. 30, 2020 | Oct. 30, 2019 | Jul. 30, 2019 | Apr. 30, 2019 | Jan. 30, 2019 | Oct. 30, 2018 | Jul. 30, 2018 | Apr. 30, 2018 | Oct. 25, 2020 | |||
Total Dividend Paid | $ 2,587 | $ 2,587 | $ 2,588 | $ 2,587 | $ 2,588 | $ 2,588 | $ 2,588 | $ 2,588 | $ 2,588 | $ 7,763 | |||
Dividend 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 INCOME (LOSS) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Beginning balance | $ 556,398 |
Ending balance | 334,382 |
Net Unrealized (Loss) Gain on Derivatives | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Beginning balance | (3,999) |
Other comprehensive loss before reclassifications | (7,233) |
Amounts reclassified from accumulated other comprehensive income | 1,254 |
Ending balance | (9,978) |
Net Unrealized (Loss) Gain on Investment Securities Available-for-Sale | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Beginning balance | 5,820 |
Other comprehensive loss before reclassifications | (191,283) |
Amounts reclassified from accumulated other comprehensive income | 185,463 |
Accumulated Other Comprehensive Income (Loss) | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Beginning balance | 1,821 |
Other comprehensive loss before reclassifications | (198,516) |
Amounts reclassified from accumulated other comprehensive income | 186,717 |
Ending balance | $ (9,978) |
RELATED PARTY TRANSACTIONS (Man
RELATED PARTY TRANSACTIONS (Management Agreement) (Details) | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2023USD ($) | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022USD ($)shares | Dec. 31, 2020USD ($)period | Dec. 31, 2018USD ($) | |
Related Party Transaction [Line Items] | |||||||
Investment management fee equity multiplier | 1.50% | ||||||
Minimum monthly compensation amount included in base management fees payable | $ 442,000 | ||||||
Investment management fee, monthly amount | $ 937,500 | ||||||
Incentive compensation multiplier | 20.00% | ||||||
Incentive compensation multiplier, weighted average shares | shares | 10,293,783 | ||||||
Incentive compensation, weighted average price share multiplier, one | 1.75% | ||||||
Weighted average price share multiplier | 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 | 20.00% | ||||||
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 | ||||||
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 | 25.00% | ||||||
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 | 1.00% | ||||||
Manager pursuant to the Management Agreement | Resource Capital Corp | |||||||
Related Party Transaction [Line Items] | |||||||
Deferred compensation arrangement with individual, cash awards, percentage | 75.00% | ||||||
Deferred compensation arrangement with individual, common stock awards, percentage | 25.00% | ||||||
Forecast | Manager pursuant to the Management Agreement | |||||||
Related Party Transaction [Line Items] | |||||||
Incentive compensation multiplier | 20.00% | 20.00% | 20.00% | 20.00% | 20.00% | ||
Incentive compensation | $ 0 | $ 0 | |||||
Incentive compensation multiplier per annum | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% |
RELATED PARTY TRANSACTIONS (Rel
RELATED PARTY TRANSACTIONS (Relationship with ACRES Capital Corp and Certain of its Subsidiaries) (Details) | Jul. 31, 2020USD ($)extension | Dec. 31, 2020USD ($) | Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2020USD ($)entity | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
Related Party Transaction [Line Items] | ||||||||||||
Base management fees paid by the Company | $ 6,054,000 | $ 8,954,000 | $ 11,250,000 | |||||||||
General and administrative | 14,335,000 | 10,392,000 | 10,666,000 | |||||||||
Interest income | $ 23,072,000 | $ 24,638,000 | $ 27,243,000 | $ 33,290,000 | $ 34,524,000 | $ 39,292,000 | $ 37,138,000 | $ 33,932,000 | 108,243,000 | 144,886,000 | $ 122,779,000 | |
Accrued interest receivable | 7,372,000 | $ 8,042,000 | 7,372,000 | $ 8,042,000 | ||||||||
CRE whole loans | 1,586,144,000 | 1,586,144,000 | ||||||||||
Whole Loans Refinanced from Affiliates of Manager | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
CRE whole loans | 24,000,000 | 24,000,000 | ||||||||||
Manager Pursuant To Management Agreement | Exantas Capital Corp | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Base management fees paid by the Company | 2,200,000 | |||||||||||
Incentive compensation | 0 | |||||||||||
Incentive compensation payable and Servicing fees payable | 0 | 0 | ||||||||||
Total indebtedness | 442,000 | 442,000 | ||||||||||
General and administrative | 1,800,000 | |||||||||||
Manager Pursuant To Management Agreement | Exantas Capital Corp | Other Liabilities | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Total indebtedness | 380,000 | $ 380,000 | ||||||||||
ACRES Capital Corp | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Number of securitization entity | entity | 1 | |||||||||||
ACRES Capital Corp | XAN 2020-RSO9 Senior Notes | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Portfolio servicing fees | $ 0 | |||||||||||
Special servicing fees | 0 | |||||||||||
ACRES Capital Corp | Exantas Capital Corp | Loan Evidenced by Promissory Note | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Related party transaction, loan amount | $ 12,000,000 | |||||||||||
Related party transaction, interest rate | 3.00% | |||||||||||
Related party transaction, monthly amortization payment | $ 25,000 | |||||||||||
Related party debt, term | 6 years | |||||||||||
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 | 11,900,000 | 11,900,000 | ||||||||||
Accrued interest receivable | $ 0 | 0 | ||||||||||
ACRES Capital Corp | Exantas Capital Corp | Loan Evidenced by Promissory Note | Other Income | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Interest income | $ 153,000 |
RELATED PARTY TRANSACTIONS (R_2
RELATED PARTY TRANSACTIONS (Relationship with C-III and Certain of its Subsidiaries) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Related Party Transaction [Line Items] | |||
Base management fees paid by the Company | $ 6,054,000 | $ 8,954,000 | $ 11,250,000 |
General and administrative | 14,335,000 | 10,392,000 | 10,666,000 |
Prior Manager Pursuant To Management Agreement | Exantas Capital Corp | |||
Related Party Transaction [Line Items] | |||
Base management fees paid by the Company | 3,800,000 | 8,300,000 | 11,300,000 |
Incentive compensation | 0 | 606,000 | 0 |
Incentive compensation payable in cash | 455,000,000 | ||
Incentive compensation payable in common stock | 151,000,000 | ||
Total indebtedness | 0 | 701,000,000 | |
Incentive compensation payable and Servicing fees payable | 0 | 0 | |
General and administrative | 4,100,000 | 4,200,000 | $ 5,000,000 |
Resource America | |||
Related Party Transaction [Line Items] | |||
Expense in connection with agreement | 40,000 | ||
Resource America | Exantas Capital Corp | |||
Related Party Transaction [Line Items] | |||
Total indebtedness | $ 0 | $ 1,100,000 |
RELATED PARTY TRANSACTIONS (R_3
RELATED PARTY TRANSACTIONS (Relationship with Resource Real Estate, LLC) (Details) - USD ($) | 12 Months Ended | |||||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2020 | Jul. 31, 2017 | Aug. 31, 2015 | Feb. 28, 2015 | Jul. 31, 2014 | |
Resource Capital Corp. 2014-CRE2, Ltd. | ||||||||
Related Party Transaction [Line Items] | ||||||||
Closing transaction amount | $ 353,900,000 | |||||||
Resource Capital Corp. 2015-CRE3, Ltd. | ||||||||
Related Party Transaction [Line Items] | ||||||||
Closing transaction amount | $ 346,200,000 | |||||||
Resource Capital Corp. 2015-CRE4, Ltd. | ||||||||
Related Party Transaction [Line Items] | ||||||||
Closing transaction amount | $ 312,900,000 | |||||||
RCC 2017-CRE5 | ||||||||
Related Party Transaction [Line Items] | ||||||||
Closing transaction amount | $ 376,700,000 | |||||||
XAN 2020-RSO8 Senior Notes | ||||||||
Related Party Transaction [Line Items] | ||||||||
Closing transaction amount | $ 522,600,000 | |||||||
Resource Real Estate | ||||||||
Related Party Transaction [Line Items] | ||||||||
Special servicing fees | $ 0 | $ 0 | $ 0 | |||||
Resource Real Estate | Commercial Real Estate Debt Investments | ||||||||
Related Party Transaction [Line Items] | ||||||||
Related party transaction, due from related party | $ 0 | $ 101,000 |
RELATED PARTY TRANSACTIONS (R_4
RELATED PARTY TRANSACTIONS (Relationship with C3AM and C-III Commercial Mortgage) (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||||||
May 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Apr. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2017 | Jul. 31, 2017 | |
Related Party Transaction [Line Items] | ||||||||
Outstanding payables | $ 1,507,682,000 | $ 1,789,985,000 | $ 1,568,967,000 | $ 1,346,663,000 | ||||
XAN 2018-RSO6 Senior Notes | ||||||||
Related Party Transaction [Line Items] | ||||||||
Closing transaction amount | $ 514,200,000 | |||||||
RCC 2017-CRE5 | ||||||||
Related Party Transaction [Line Items] | ||||||||
Closing transaction amount | $ 376,700,000 | |||||||
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 | 74,000 | 108,000 | ||||||
Outstanding payables | $ 48,000 | 0 | ||||||
C3AM | XAN 2018-RSO6 Senior Notes | Asset Management Agreement | ||||||||
Related Party Transaction [Line Items] | ||||||||
Closing transaction amount | $ 514,200,000 | |||||||
C3AM | XAN 2019-RSO7 Senior Notes | Asset Management Agreement | ||||||||
Related Party Transaction [Line Items] | ||||||||
Closing transaction amount | $ 687,200,000 | |||||||
C3AM | RCC 2017-CRE5 | Asset Management Agreement | ||||||||
Related Party Transaction [Line Items] | ||||||||
Servicing fees earned | 565,000 | $ 321,000 | ||||||
Incentive compensation payable and Servicing fees payable | $ 37,000 |
RELATED PARTY TRANSACTIONS (R_5
RELATED PARTY TRANSACTIONS (Relationship with Resource Real Estate Opportunity REIT) (Details) - Resource Real Estate Opportunity REIT | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Related Party Transaction [Line Items] | |
Expense in connection with agreement | $ 45,000 |
Payables for rent and professional services | $ 0 |
FAIR VALUE OF FINANCIAL INSTR_3
FAIR VALUE OF FINANCIAL INSTRUMENTS (Assets and Liabilities Measured at Fair Value) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Nov. 30, 2020 | Dec. 31, 2019 |
Assets: | |||
Investment securities available-for-sale | $ 520,714 | ||
Derivative assets at fair value | 30 | ||
Total assets at fair value | $ 39,800 | ||
Liabilities: | |||
Derivative liabilities at fair value | 4,558 | ||
Recurring Basis | |||
Assets: | |||
Investment securities available-for-sale | $ 2,080 | 520,714 | |
Derivative assets at fair value | 30 | ||
Total assets at fair value | 2,080 | 520,744 | |
Liabilities: | |||
Derivative liabilities at fair value | 4,558 | ||
Total liabilities at fair value | 4,558 | ||
Recurring Basis | Level 1 | |||
Assets: | |||
Investment securities available-for-sale | 0 | 0 | |
Derivative assets at fair value | 0 | ||
Total assets at fair value | 0 | 0 | |
Liabilities: | |||
Derivative liabilities at fair value | 0 | ||
Total liabilities at fair value | 0 | ||
Recurring Basis | Level 2 | |||
Assets: | |||
Investment securities available-for-sale | 0 | 0 | |
Derivative assets at fair value | 30 | ||
Total assets at fair value | 0 | 30 | |
Liabilities: | |||
Derivative liabilities at fair value | 4,558 | ||
Total liabilities at fair value | 4,558 | ||
Recurring Basis | Level 3 | |||
Assets: | |||
Investment securities available-for-sale | 2,080 | 520,714 | |
Derivative assets at fair value | 0 | ||
Total assets at fair value | $ 2,080 | 520,714 | |
Liabilities: | |||
Derivative liabilities at fair value | 0 | ||
Total liabilities at fair value | $ 0 |
FAIR VALUE OF FINANCIAL INSTR_4
FAIR VALUE OF FINANCIAL INSTRUMENTS (Assets Measured on Recurring Basis) (Details) - Level 3 - Recurring Basis - CMBS $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation | |
Balance, January 1, 2020 | $ 520,714 |
Included in earnings | (185,929) |
Purchases | 24,600 |
Sales | (111,846) |
Paydowns | (4,733) |
Relinquishments | (234,906) |
Included in other comprehensive loss | (5,820) |
Balance, December 31, 2020 | $ 2,080 |
FAIR VALUE OF FINANCIAL INSTR_5
FAIR VALUE OF FINANCIAL INSTRUMENTS (Assets and Liabilities, Quantitative Information) (Details) - USD ($) $ in Thousands | Nov. 30, 2020 | Dec. 31, 2019 |
Assets: | ||
Total assets at fair value | $ 39,800 | |
Nonrecurring | ||
Assets: | ||
Asset held for sale | $ 16,500 | |
Total assets at fair value | 16,500 | |
Liabilities: | ||
Pearlmark Mezz indemnification | 56 | |
Total liabilities at fair value | 56 | |
Nonrecurring | Level 1 | ||
Assets: | ||
Asset held for sale | 0 | |
Total assets at fair value | 0 | |
Liabilities: | ||
Pearlmark Mezz indemnification | 0 | |
Total liabilities at fair value | 0 | |
Nonrecurring | Level 2 | ||
Assets: | ||
Asset held for sale | 0 | |
Total assets at fair value | 0 | |
Liabilities: | ||
Pearlmark Mezz indemnification | 0 | |
Total liabilities at fair value | 0 | |
Nonrecurring | Level 3 | ||
Assets: | ||
Asset held for sale | 16,500 | |
Total assets at fair value | 16,500 | |
Liabilities: | ||
Pearlmark Mezz indemnification | 56 | |
Total liabilities at fair value | $ 56 |
FAIR VALUE OF FINANCIAL INSTR_6
FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - USD ($) | 12 Months Ended | |||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Nov. 30, 2020 | Sep. 30, 2020 | Mar. 31, 2020 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Total fair value of real estate owned property | $ 39,800,000 | |||||
Fair value adjustments on financial assets held for sale | $ (8,768,000) | $ (4,682,000) | $ (7,176,000) | |||
Provision for loan and lease losses, net | 645,000 | 1,724,000 | ||||
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 | |||||
Preferred equity investment | Expected Future Cash Flows | Measurement Input, Discount Rate | VIE, Not Primary Beneficiary | Rating 3 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair value inputs, discount rate | 0.1208 | |||||
Preferred equity investment | Expected Future Cash Flows | Measurement Input, Discount Rate | VIE, Not Primary Beneficiary | Rating 4 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair value inputs, discount rate | 0.1154 | |||||
Senior Secured Financing Facility | Measurement Input, Discount Rate | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair value inputs, discount rate | 0.0575 | |||||
Level 3 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Property held for sale | $ 16,500,000 | |||||
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 | 4.10% | 4.45% | ||||
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 | 9.75% | 7.96% | ||||
Commercial Real Estate Loans | Legacy CRE Loans Held For Sale | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Property held for sale | $ 16,500,000 | $ 11,000,000 | $ 13,500,000 | |||
Estimated costs to sell | $ 715,000 | |||||
Fair value adjustments on financial assets held for sale | 8,800,000 | 4,700,000 | 7,200,000 | |||
Financing receivable, average value | 10,300,000 | 16,500,000 | ||||
Property sold | 10,300,000 | |||||
Loss on fair value charges | 6,200,000 | |||||
Provision for loan and lease losses, net | $ 2,700,000 | $ 1,200,000 | $ 1,700,000 |
FAIR VALUE OF FINANCIAL INSTR_7
FAIR VALUE OF FINANCIAL INSTRUMENTS (Fair Value, by Balance Sheet Grouping) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
CRE loans, pledged as collateral | $ 1,507,682 | $ 1,789,985 |
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 | |
Senior notes in CRE securitizations | 0 | 0 |
Junior subordinated notes | 0 | 0 |
Convertible notes | 0 | 0 |
Warehouse financing facilities and repurchase agreements | 0 | 0 |
Asset held for sale | 0 | |
Quoted Prices in Active Markets for Identical Assets of Liabilities (Level 1) | Whole loans held for investment | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
CRE loans, pledged as collateral | 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 | 0 |
Quoted Prices in Active Markets for Identical Assets of Liabilities (Level 1) | Preferred equity investments | ||
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) | CRE Whole Loans, Fixed Rate | Other Assets | ||
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) | Senior Unsecured Notes Due 2027 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior Unsecured Notes due 2027 | 0 | |
Quoted Prices in Active Markets for Identical Assets of Liabilities (Level 1) | Senior Secured Financing Facility | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior secured financing facility | 0 | |
Significant Other Observable Inputs (Level 2) | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Loan receivable - related party | 0 | |
Senior notes in CRE securitizations | 0 | 0 |
Junior subordinated notes | 0 | 0 |
Convertible notes | 0 | 0 |
Warehouse financing facilities and repurchase agreements | 0 | 0 |
Asset held for sale | 0 | |
Significant Other Observable Inputs (Level 2) | Whole loans held for investment | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
CRE loans, pledged as collateral | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Mezzanine loan | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Loans and receivables | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Preferred equity investments | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Loans and receivables | 0 | 0 |
Significant Other Observable Inputs (Level 2) | CRE Whole Loans, Fixed Rate | Other Assets | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Loans and receivables | 0 | |
Significant Other Observable Inputs (Level 2) | Senior Unsecured Notes Due 2027 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior Unsecured Notes due 2027 | 0 | |
Significant Other Observable Inputs (Level 2) | Senior Secured Financing Facility | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior secured financing facility | 0 | |
Significant Unobservable Inputs (Level 3) | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Loan receivable - related party | 10,184 | |
Senior notes in CRE securitizations | 1,030,854 | 754,023 |
Junior subordinated notes | 31,955 | 25,831 |
Convertible notes | 132,437 | 164,932 |
Warehouse financing facilities and repurchase agreements | 13,516 | 922,519 |
Asset held for sale | 16,500 | |
Significant Unobservable Inputs (Level 3) | Whole loans held for investment | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
CRE loans, pledged as collateral | 1,513,822 | 1,768,322 |
Significant Unobservable Inputs (Level 3) | Mezzanine loan | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Loans and receivables | 4,700 | 4,700 |
Significant Unobservable Inputs (Level 3) | Preferred equity investments | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Loans and receivables | 27,650 | 26,237 |
Significant Unobservable Inputs (Level 3) | CRE Whole Loans, Fixed Rate | Other Assets | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Loans and receivables | 4,809 | |
Significant Unobservable Inputs (Level 3) | Senior Unsecured Notes Due 2027 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior Unsecured Notes due 2027 | 58,910 | |
Significant Unobservable Inputs (Level 3) | Senior Secured Financing Facility | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior secured financing facility | 33,360 | |
Carrying Value | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Loan receivable - related party | 11,875 | |
Senior notes in CRE securitizations | 1,027,929 | 746,438 |
Junior subordinated notes | 51,548 | 51,548 |
Convertible notes | 137,252 | 154,786 |
Warehouse financing facilities and repurchase agreements | 12,258 | 919,805 |
Asset held for sale | 16,500 | |
Carrying Value | Whole loans held for investment | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
CRE loans, pledged as collateral | 1,477,295 | 1,759,137 |
Carrying Value | Mezzanine loan | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Loans and receivables | 4,399 | 4,700 |
Carrying Value | Preferred equity investments | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Loans and receivables | 25,988 | 26,148 |
Carrying Value | CRE Whole Loans, Fixed Rate | Other Assets | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Loans and receivables | 4,809 | |
Carrying Value | Senior Unsecured Notes Due 2027 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior Unsecured Notes due 2027 | 46,426 | |
Carrying Value | Senior Secured Financing Facility | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior secured financing facility | 29,314 | |
Fair Value | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Loan receivable - related party | 10,184 | |
Senior notes in CRE securitizations | 1,030,854 | 754,023 |
Junior subordinated notes | 31,955 | 25,831 |
Convertible notes | 132,437 | 164,932 |
Warehouse financing facilities and repurchase agreements | 13,516 | 922,519 |
Asset held for sale | 16,500 | |
Fair Value | Whole loans held for investment | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
CRE loans, pledged as collateral | 1,513,822 | 1,768,322 |
Fair Value | Mezzanine loan | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Loans and receivables | 4,700 | 4,700 |
Fair Value | Preferred equity investments | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Loans and receivables | 27,650 | $ 26,237 |
Fair Value | CRE Whole Loans, Fixed Rate | Other Assets | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Loans and receivables | 4,809 | |
Fair Value | Senior Unsecured Notes Due 2027 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior Unsecured Notes due 2027 | 58,910 | |
Fair Value | Senior Secured Financing Facility | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior secured financing facility | $ 33,360 |
MARKET RISK AND DERIVATIVE IN_3
MARKET RISK AND DERIVATIVE INSTRUMENTS (Details) | 1 Months Ended | 12 Months Ended | |
Apr. 30, 2020USD ($) | Dec. 31, 2020USD ($)derivative | Dec. 31, 2019USD ($)derivative | |
Derivatives, Fair Value [Line Items] | |||
Fair Value | $ 30,000 | ||
Gross Amounts of Recognized Liabilities | $ 4,558,000 | ||
Interest rate swaps | |||
Derivatives, Fair Value [Line Items] | |||
Number of instruments held | derivative | 0 | 19 | |
Average fixed interest rate | 2.47% | ||
Notional amount | $ 90,200,000 | ||
Fair Value | 30,000 | ||
Gain (loss) on derivatives | (4,000,000) | ||
Interest rate swaps | Derivatives, at fair value | Cash Flow Hedges | |||
Derivatives, Fair Value [Line Items] | |||
Fair Value | 30,000 | ||
Gross Amounts of Recognized Liabilities | 4,558,000 | ||
Terminated interest rate swap | |||
Derivatives, Fair Value [Line Items] | |||
Realized loss on derivatives, net | $ (11,800,000) | ||
Amortization expense reported in interest expense | $ 1,300,000 | ||
Gain (loss) on derivatives | (10,400,000) | ||
Unrealized gains (loss) on derivatives, net | $ 438,000 | 530,000 | |
Number of hedges terminated | derivative | 2 | ||
Interest expense to fully amortize | $ 92,000 | $ 91,000 |
MARKET RISK AND DERIVATIVE IN_4
MARKET RISK AND DERIVATIVE INSTRUMENTS (Fair Value and Classification of Derivatives) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Liability Derivatives | |||
Fair Value | $ 4,558,000 | ||
Asset Derivatives | |||
Fair Value | 30,000 | ||
Other (Expense) Income | |||
Asset Derivatives | |||
Realized and Unrealized Gain (Loss) | $ (10,000) | ||
Interest rate swaps | |||
Asset Derivatives | |||
Fair Value | 30,000 | ||
Interest rate swaps | Interest expense | |||
Asset Derivatives | |||
Realized and Unrealized Gain (Loss) | (1,562,000) | (138,000) | $ (169,000) |
Interest rate swaps | Accumulated Other Comprehensive (Loss) Income | |||
Liability Derivatives | |||
Notional Amount | 90,181,000 | ||
Fair Value | $ (9,978,000) | (3,999,000) | |
Interest rate swaps | Derivatives, at fair value | Cash Flow Hedges | |||
Liability Derivatives | |||
Notional Amount | 87,551,000 | ||
Fair Value | 4,558,000 | ||
Asset Derivatives | |||
Notional Amount | 2,630,000 | ||
Fair Value | $ 30,000 |
OFFSETTING OF FINANCIAL ASSET_3
OFFSETTING OF FINANCIAL ASSETS AND LIABILITIES (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Offsetting Derivative Assets | ||
Gross Amounts of Recognized Assets | $ 30,000 | |
Gross Amounts Offset on the Consolidated Balance Sheets | 0 | |
Net Amounts of Assets Presented on the Consolidated Balance Sheets | 30,000 | |
Gross Amounts Not Offset on the Consolidated Balance Sheets- Financial Instruments | 0 | |
Gross Amounts Not Offset on the Consolidated Balance Sheets- Cash Collateral Pledged | 0 | |
Net Amount | 30,000 | |
Offsetting Derivative Liabilities | ||
Gross Amounts of Recognized Liabilities | 4,558,000 | |
Gross Amounts Offset on the Consolidated Balance Sheets | 0 | |
Net Amounts of Liabilities Presented on the Consolidated Balance Sheets | 4,558,000 | |
Gross Amounts Not Offset on the Consolidated Balance Sheets- Financial Instruments | 0 | |
Gross Amounts Not Offset on the Consolidated Balance Sheets- Cash Collateral Pledged | 4,558,000 | |
Net Amount | 0 | |
Warehouse financing facilities and repurchase agreements | ||
Gross Amounts of Recognized Liabilities | $ 12,258,000 | 919,805,000 |
Gross Amounts Offset on the Consolidated Balance Sheets | 0 | 0 |
Net Amounts of Liabilities Presented on the Consolidated Balance Sheets | 12,258,000 | 919,805,000 |
Gross Amounts Not Offset on the Consolidated Balance Sheets- Financial Instruments | 12,258,000 | 915,041,000 |
Gross Amounts Not Offset on the Consolidated Balance Sheets- Cash Collateral Pledged | 0 | 4,764,000 |
Net Amount | 0 | 0 |
Total-Liabilities | ||
Gross Amounts of Recognized Liabilities | 12,258,000 | 924,363,000 |
Gross Amounts Offset on the Consolidated Balance Sheets | 0 | 0 |
Net Amounts of Liabilities Presented on the Consolidated Balance Sheets | 12,258,000 | 924,363,000 |
Gross Amounts Not Offset on the Consolidated Balance Sheets- Financial Instruments | 12,258,000 | 915,041,000 |
Gross Amounts Not Offset on the Consolidated Balance Sheets- Cash Collateral Pledged | 0 | 9,322,000 |
Net Amount | 0 | 0 |
Fair value of securities pledged against repurchase agreements | $ 20,000,000 | 1,200,000,000 |
Interest rate swaps | ||
Offsetting Derivative Assets | ||
Gross Amounts of Recognized Assets | 30,000 | |
Offsetting Derivative Liabilities | ||
Excess cash collateral deposits related to interest rate swap contracts | $ 4,600,000 |
INCOME TAXES (Components of Inc
INCOME TAXES (Components of Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Current: | |||
Federal | $ 0 | $ 0 | $ 0 |
State | 0 | 0 | (316) |
Total current | 0 | 0 | (316) |
Deferred: | |||
Federal | 0 | 0 | (27) |
State | 0 | 0 | 0 |
Total deferred | 0 | 0 | (27) |
Total | $ 0 | $ 0 | $ (343) |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Statutory tax | $ (37) | $ 6 | $ (220) |
State and local taxes, net of federal benefit | (3,353) | 2,716 | (1,007) |
Permanent adjustments | 0 | 0 | (3) |
True-up of prior period tax expense | 0 | 816 | (4) |
Valuation allowance | 6,407 | (5,402) | 5,348 |
Discontinued operations adjustment | 0 | 863 | (4,344) |
Other items | (3,017) | 1,001 | (113) |
Total | $ 0 | $ 0 | $ (343) |
INCOME TAXES (Components of Def
INCOME TAXES (Components of Deferred Tax Assets and Liabilities) (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred tax assets related to: | ||
Federal, state and local loss carryforwards | $ 13,764,000 | $ 7,026,000 |
Accrued expenses | 0 | 27,000 |
Charitable contribution carryforward | 58,000 | 16,000 |
Amortization of intangibles | 0 | 466,000 |
Unrealized gains | 0 | 662,000 |
Capital loss carryforward | 327,000 | 2,736,000 |
Equity investments | 7,369,000 | 0 |
Total deferred tax assets | 21,518,000 | 10,933,000 |
Valuation allowance | (21,235,000) | (9,883,000) |
Total deferred tax assets, net of valuation allowance | 283,000 | 1,050,000 |
Deferred tax liabilities related to: | ||
Investment in securities | 0 | (1,050,000) |
Amortization of intangibles | (252,000) | 0 |
Unrealized gains | (31,000) | 0 |
Total deferred tax liabilities | (283,000) | (1,050,000) |
Deferred tax assets, net | $ 0 | $ 0 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Income Taxes [Line Items] | ||
Deferred tax assets, operating loss carryforwards, domestic | $ 59,400,000 | $ 28,000,000 |
Deferred tax assets, operating loss carryforwards, state and local | 1,600,000 | 1,500,000 |
Capital loss carryforward | 327,000 | 2,736,000 |
Operating loss carryforwards, valuation allowance | 62,900,000 | 32,900,000 |
Operating loss carryforwards, valuation allowance, tax expense impact | 21,200,000 | 9,900,000 |
Other Assets | ||
Income Taxes [Line Items] | ||
Net operating loss carryforwards | 13,800,000 | 7,000,000 |
Capital Loss Carryforward | ||
Income Taxes [Line Items] | ||
Gross capital loss carryforward | 969,000 | |
Domestic Tax Authority | ||
Income Taxes [Line Items] | ||
Net operating tax loss carryforwards | 59,400,000 | 58,500,000 |
State and Local Jurisdiction | ||
Income Taxes [Line Items] | ||
Net operating tax loss carryforwards | $ 1,600,000 | $ 1,500,000 |
QUARTERLY RESULTS (Details)
QUARTERLY RESULTS (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Interest income | $ 23,072 | $ 24,638 | $ 27,243 | $ 33,290 | $ 34,524 | $ 39,292 | $ 37,138 | $ 33,932 | $ 108,243 | $ 144,886 | $ 122,779 |
Interest expense | 14,034 | 13,033 | 12,547 | 18,394 | 20,149 | 22,712 | 21,581 | 19,395 | 58,008 | 83,837 | 67,616 |
Net interest income | 9,038 | 11,605 | 14,696 | 14,896 | 14,375 | 16,580 | 15,557 | 14,537 | 50,235 | 61,049 | 55,163 |
Net (loss) income from continuing operations | 24,049 | 8,159 | (33,400) | (196,521) | 6,424 | 12,620 | 9,003 | 8,170 | (197,713) | 36,217 | 27,306 |
Net income (loss) from discontinued operations | (39) | (63) | (112) | (37) | (251) | 121 | |||||
NET (LOSS) INCOME | 24,049 | 8,159 | (33,400) | (196,521) | 6,385 | 12,557 | 8,891 | 8,133 | (197,713) | 35,966 | 27,427 |
Net income allocated to preferred shares | (2,587) | (2,588) | (2,587) | (2,588) | (2,587) | (2,588) | (2,587) | (2,588) | (10,350) | (10,350) | (12,972) |
NET (LOSS) INCOME ALLOCABLE TO COMMON SHARES | $ 21,462 | $ 5,571 | $ (35,987) | $ (199,109) | $ 3,798 | $ 9,969 | $ 6,304 | $ 5,545 | $ (208,063) | $ 25,616 | $ 6,973 |
Net (loss) income per common share from continuing operations - basic | $ 1.96 | $ 0.51 | $ (3.41) | $ (18.89) | $ 0.37 | $ 0.96 | $ 0.61 | $ 0.53 | $ (19.33) | $ 2.47 | $ 0.66 |
Net loss per common share from discontinued operations - basic | (0.01) | (0.01) | (0.02) | 0.01 | |||||||
TOTAL NET (LOSS) INCOME PER COMMON SHARE - BASIC | 1.96 | 0.51 | (3.41) | (18.89) | 0.37 | 0.95 | 0.60 | 0.53 | (19.33) | 2.45 | 0.67 |
Net (loss) income per common share from continuing operations - diluted | 1.95 | 0.51 | (3.41) | (18.89) | 0.36 | 0.95 | 0.61 | 0.53 | (19.33) | 2.45 | 0.66 |
Net loss per common share from discontinued operations - diluted | (0.01) | (0.01) | (0.02) | 0.01 | |||||||
TOTAL NET (LOSS) INCOME PER COMMON SHARE - DILUTED | $ 1.95 | $ 0.51 | $ (3.41) | $ (18.89) | $ 0.36 | $ 0.94 | $ 0.60 | $ 0.53 | $ (19.33) | $ 2.43 | $ 0.67 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) | Feb. 05, 2018USD ($)holdershares | Oct. 31, 2019claim | Apr. 30, 2018USD ($) | May 31, 2017USD ($)Loan | Dec. 31, 2020USD ($)claim | Dec. 31, 2019USD ($) | Aug. 31, 2017claim |
Loss Contingencies [Line Items] | |||||||
Estimated litigation liability | $ 0 | $ 0 | |||||
Payments of legal costs in excess of insurance coverage | $ 2,000,000 | ||||||
Commercial Real Estate Loans | Whole Loans | |||||||
Loss Contingencies [Line Items] | |||||||
Loans held for investment, unfunded loan commitments | 67,200,000 | 98,000,000 | |||||
Commercial Real Estate Loans | Preferred equity investment | |||||||
Loss Contingencies [Line Items] | |||||||
Loans held for investment, unfunded loan commitments | 2,500,000 | 3,000,000 | |||||
Indemnification Agreement | |||||||
Loss Contingencies [Line Items] | |||||||
Estimated litigation liability | 1,500,000 | 1,700,000 | |||||
Indemnification Agreement | Pearlmark Mezzanine Realty Partners IV, L.P. | |||||||
Loss Contingencies [Line Items] | |||||||
Outstanding litigation demands | 56,000 | ||||||
Number of instruments held | Loan | 1 | ||||||
Reversal from reserve for probable losses | 56,000 | 647,000 | |||||
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 | |||||
Levin v. Resource Capital Corp. | Settled Litigation Matters, Including Pending Settlements | |||||||
Loss Contingencies [Line Items] | |||||||
Litigation settlement, amount awarded to other party | $ 9,500,000 | ||||||
Levin v. Resource Capital Corp. | Open Litigation Matters | |||||||
Loss Contingencies [Line Items] | |||||||
Number of shareholders who opted out of settlement | holder | 1 | ||||||
Number of shares held by individual shareholder who opted out of settlement (in shares) | shares | 500 | ||||||
Federal Actions | Settled Litigation Matters, Including Pending Settlements | |||||||
Loss Contingencies [Line Items] | |||||||
Loss contingency, new claims filed, number | claim | 2 | ||||||
Estimate of possible loss to be funded by insurance company | $ 550,000 | ||||||
Reaves, Caito, Simpson, and Heckel Complaints | Settled Litigation Matters, Including Pending Settlements | |||||||
Loss Contingencies [Line Items] | |||||||
Loss contingency, new claims filed, number | claim | 6 | ||||||
Loss contingency, claims dismissed, number | claim | 4 |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | $ 1,460 | $ 1,401 | $ 5,328 |
Charge to Expense | 30,815 | 59 | (1,595) |
Loans Charged off/Recovered | (997) | 0 | (2,332) |
Balance at End of Period | 34,310 | 1,460 | $ 1,401 |
Cumulative Effect, Period of Adoption, Adjustment | ASU 2016-13 | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | $ 3,032 | ||
Balance at End of Period | $ 3,032 |
Schedule III Real Estate and _2
Schedule III Real Estate and Accumulated Depreciation (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Real Estate And Accumulated Depreciation [Line Items] | |
Total | $ 30,944 |
Accumulated Depreciation | (112) |
Hotel Property, Northeast Region | |
Real Estate And Accumulated Depreciation [Line Items] | |
Initial Cost to Company - Buildings and Improvements | 30,944 |
Buildings and Improvements | 30,944 |
Total | 30,944 |
Accumulated Depreciation | $ (112) |
Year of Construction | 2000 |
Date Acquired | Nov. 16, 2020 |
Life on Which Depreciation in Latest Statements of Comprehensive Income is Computed | 35 years |
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) $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Additions during period: | |
Acquisitions through deed in lieu of foreclosure | $ 30,944 |
Balance at close of period | 30,944 |
Additions during period: | |
Depreciation expense | (112) |
Balance at close of period | $ (112) |
Schedule IV Mortgage Loans on_2
Schedule IV Mortgage Loans on Real Estate (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020USD ($)Loan | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Mortgage Loans on Real Estate [Line Items] | ||||
CRE whole loans | $ 1,586,144 | |||
Net Carrying Amount of Loans | 1,507,682 | $ 1,789,985 | $ 1,568,967 | $ 1,346,663 |
General allowance for loan loss | (32,410) | |||
Principal Amount of Loans Subject to Delinquent Principal or Interest | 87,188 | |||
CRE whole loans | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
CRE whole loans | 1,515,722 | |||
Net Carrying Amount of Loans | 1,507,678 | |||
Principal Amount of Loans Subject to Delinquent Principal or Interest | 49,116 | |||
Allowance for credit losses individually determined | 1,900 | |||
Allowance for credit losses general | 32,400 | |||
CRE whole loans | Office Building | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
CRE whole loans | 19,900 | |||
Allowance for credit losses individually determined | 1,900 | |||
CRE whole loans | Atlanta GA | Multifamily | Borrower A | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Prior Liens | 0 | |||
CRE whole loans | 51,778 | |||
Net Carrying Amount of Loans | 51,612 | |||
Principal Amount of Loans Subject to Delinquent Principal or Interest | $ 0 | |||
Variable rate basis, floor | 2.50% | |||
Maturity Date | 2022 | |||
CRE whole loans | Atlanta GA | Multifamily | Borrower A | London Interbank Offered Rate (LIBOR) | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Basis spread on variable rate | 2.90% | |||
CRE whole loans | Phoenix AZ | Hotel | Borrower B | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
CRE whole loans | $ 56,470 | |||
Net Carrying Amount of Loans | $ 56,332 | |||
Variable rate basis, floor | 1.92% | |||
Maturity Date | 2021 | |||
CRE whole loans | Phoenix AZ | Hotel | Borrower B | London Interbank Offered Rate (LIBOR) | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Basis spread on variable rate | 3.75% | |||
CRE whole loans | Various | Multifamily | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Prior Liens | $ 0 | |||
CRE whole loans | 790,722 | |||
Net Carrying Amount of Loans | 787,166 | |||
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 | 0.50% | |||
Maturity Date | 2021 | |||
CRE whole loans | Various | Multifamily | Maximum | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Variable rate basis, floor | 2.50% | |||
Maturity Date | 2024 | |||
CRE whole loans | Various | Multifamily | London Interbank Offered Rate (LIBOR) | Minimum | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Basis spread on variable rate | 2.70% | |||
CRE whole loans | Various | Multifamily | London Interbank Offered Rate (LIBOR) | Maximum | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Basis spread on variable rate | 4.70% | |||
CRE whole loans | Various | Hotel | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Prior Liens | $ 0 | |||
CRE whole loans | 139,026 | |||
Net Carrying Amount of Loans | 138,371 | |||
Principal Amount of Loans Subject to Delinquent Principal or Interest | $ 17,700 | |||
CRE whole loans | Various | Hotel | Minimum | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Variable rate basis, floor | 0.75% | |||
Maturity Date | 2021 | |||
CRE whole loans | Various | Hotel | Maximum | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Variable rate basis, floor | 2.45% | |||
Maturity Date | 2024 | |||
CRE whole loans | Various | Hotel | London Interbank Offered Rate (LIBOR) | Minimum | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Basis spread on variable rate | 3.90% | |||
CRE whole loans | Various | Hotel | London Interbank Offered Rate (LIBOR) | Maximum | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Basis spread on variable rate | 9.00% | |||
CRE whole loans | Various | Office Building | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Prior Liens | $ 0 | |||
CRE whole loans | 221,542 | |||
Net Carrying Amount of Loans | 219,013 | |||
Principal Amount of Loans Subject to Delinquent Principal or Interest | $ 19,900 | |||
CRE whole loans | Various | Office Building | Minimum | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Variable rate basis, floor | 0.25% | |||
Maturity Date | 2021 | |||
CRE whole loans | Various | Office Building | Maximum | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Variable rate basis, floor | 2.50% | |||
Maturity Date | 2023 | |||
CRE whole loans | Various | Office Building | London Interbank Offered Rate (LIBOR) | Minimum | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Basis spread on variable rate | 2.82% | |||
CRE whole loans | Various | Office Building | London Interbank Offered Rate (LIBOR) | Maximum | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Basis spread on variable rate | 4.35% | |||
CRE whole loans | Various | Retail Site | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Prior Liens | $ 0 | |||
CRE whole loans | 76,623 | |||
Net Carrying Amount of Loans | 76,386 | |||
Principal Amount of Loans Subject to Delinquent Principal or Interest | $ 11,516 | |||
Maturity Date | 2021 | |||
Number of forbearance loans | Loan | 1 | |||
CRE whole loans | Various | Retail Site | Minimum | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Variable rate basis, floor | 1.00% | |||
CRE whole loans | Various | Retail Site | Maximum | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Variable rate basis, floor | 2.15% | |||
CRE whole loans | Various | Retail Site | London Interbank Offered Rate (LIBOR) | Minimum | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Basis spread on variable rate | 3.25% | |||
CRE whole loans | Various | Retail Site | London Interbank Offered Rate (LIBOR) | Maximum | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Basis spread on variable rate | 5.00% | |||
CRE whole loans | Various | Self Storage | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Prior Liens | $ 0 | |||
CRE whole loans | 122,465 | |||
Net Carrying Amount of Loans | 121,921 | |||
Principal Amount of Loans Subject to Delinquent Principal or Interest | $ 0 | |||
CRE whole loans | Various | Self Storage | Minimum | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Variable rate basis, floor | 1.55% | |||
Maturity Date | 2021 | |||
CRE whole loans | Various | Self Storage | Maximum | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Variable rate basis, floor | 2.50% | |||
Maturity Date | 2023 | |||
CRE whole loans | Various | Self Storage | London Interbank Offered Rate (LIBOR) | Minimum | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Basis spread on variable rate | 3.50% | |||
CRE whole loans | Various | Self Storage | London Interbank Offered Rate (LIBOR) | Maximum | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Basis spread on variable rate | 4.00% | |||
CRE whole loans | Various | Other | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
CRE whole loans | $ 57,096 | |||
Net Carrying Amount of Loans | $ 56,877 | |||
CRE whole loans | Various | Other | Minimum | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Variable rate basis, floor | 1.25% | |||
Maturity Date | 2021 | |||
CRE whole loans | Various | Other | Maximum | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Variable rate basis, floor | 2.50% | |||
Maturity Date | 2023 | |||
CRE whole loans | Various | Other | London Interbank Offered Rate (LIBOR) | Minimum | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Basis spread on variable rate | 3.50% | |||
CRE whole loans | Various | Other | London Interbank Offered Rate (LIBOR) | Maximum | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Basis spread on variable rate | 6.50% | |||
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 | |||
Preferred Equity less than 3% of the carrying amount of total loans | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
CRE whole loans | 27,650 | |||
Net Carrying Amount of Loans | 27,714 | |||
Principal Amount of Loans Subject to Delinquent Principal or Interest | 0 | |||
Preferred Equity | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
CRE whole loans | 27,650 | |||
Net Carrying Amount of Loans | 27,714 | |||
Principal Amount of Loans Subject to Delinquent Principal or Interest | 0 | |||
One Mezzanine Loan | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
CRE whole loans | 38,100 | |||
Net Carrying Amount of Loans | $ 0 | |||
Quantity | Loan | 1 | |||
Interest Only Loans | ||||
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Movement in Mortgage Loans on Real Estate [Roll Forward] | |||
Balance at beginning of year | $ 1,789,985 | $ 1,568,967 | $ 1,346,663 |
Additions during the period: | |||
New loans originated or acquired | 263,081 | 874,936 | 780,556 |
Funding of existing loan commitments | 34,981 | 43,203 | 51,365 |
Amortization of loan origination fees and costs, net | 5,555 | 6,053 | 5,537 |
Protective advances on legacy CRE loans held for sale | 645 | 1,724 | |
(Provision for) recovery of credit losses, net | (30,815) | (58) | 1,595 |
Charge off of realized loss on loan sale | 997 | ||
Settled loans held for sale fair value adjustments | 1,000 | ||
Capitalized interest and loan acquisition costs | 1,126 | 3,418 | 518 |
Deductions during the period: | |||
Payoff and paydown of loans | (493,968) | (682,846) | (592,438) |
Deed in lieu of foreclosure | (37,956) | (18,515) | |
Cost of loans sold | (18,451) | ||
Loans held for sale payoffs | (12,000) | ||
Capitalized origination fees | (3,821) | (6,687) | (8,329) |
Balance at end of year | $ 1,507,682 | 1,789,985 | 1,568,967 |
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201613Member | ||
Loans held for sale fair value adjustments | $ 869 | $ (7,224) | |
Cumulative Effect, Period of Adoption, Adjustment | |||
Deductions during the period: | |||
Balance at end of year | $ (3,032) |