Cover Page
Cover Page - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2023 | Feb. 16, 2024 | Jun. 30, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-34436 | ||
Entity Registrant Name | Starwood Property Trust, Inc. | ||
Entity Incorporation, State or Country Code | MD | ||
Entity Tax Identification Number | 27-0247747 | ||
Entity Address, Address Line One | 591 West Putnam Avenue | ||
Entity Address, City or Town | Greenwich | ||
Entity Address, State or Province | CT | ||
Entity Address, Postal Zip Code | 06830 | ||
City Area Code | 203 | ||
Local Phone Number | 422-7700 | ||
Title of 12(b) Security | Common Stock, $0.01 par value per share | ||
Trading Symbol | STWD | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 5.7 | ||
Entity Common Stock, Shares Outstanding | 313,375,899 | ||
Documents Incorporated by Reference | 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 pursuant to Regulation 14A on or prior to April 29, 2024. | ||
Entity Central Index Key | 0001465128 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2023 | |
Audit Information [Abstract] | |
Auditor Firm ID | 34 |
Auditor Name | DELOITTE & TOUCHE LLP |
Auditor Location | Miami, Florida |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Assets: | ||
Cash and cash equivalents | $ 194,660 | $ 261,061 |
Restricted cash | 117,312 | 121,072 |
Loans held-for-investment, net of credit loss allowances of $309,039 and $99,413 | 17,574,249 | 18,401,439 |
Loans held-for-sale, at fair value | 2,645,637 | 2,784,594 |
Investment securities, net of credit loss allowances of $13,143 and $3,182 ($129,308 and $142,334 held at fair value) | 735,562 | 815,804 |
Properties, net | 1,046,384 | 1,449,986 |
Properties held-for-sale | 290,937 | 0 |
Investments of consolidated affordable housing fund, at fair value | 1,761,002 | |
Investments in unconsolidated entities | 90,376 | 91,892 |
Goodwill | 259,846 | 259,846 |
Intangible assets ($19,384 and $17,790 held at fair value) | 64,967 | 68,773 |
Derivative assets | 63,437 | 108,621 |
Accrued interest receivable | 200,867 | 168,521 |
Other assets | 420,773 | 297,477 |
Variable interest entity (“VIE”) assets, at fair value | 43,786,356 | 52,453,041 |
Total Assets | 69,504,196 | 79,043,129 |
Liabilities: | ||
Dividends payable | 152,888 | 151,511 |
Derivative liabilities | 102,467 | 91,404 |
Secured financing agreements, net | 13,867,996 | 14,501,532 |
Collateralized loan obligations and single asset securitization, net | 3,491,292 | 3,676,224 |
Unsecured senior notes, net | 2,158,888 | 2,329,211 |
Debt related to properties held-for-sale | 193,691 | 0 |
VIE liabilities, at fair value | 42,175,734 | 50,754,355 |
Total Liabilities | 62,481,214 | 71,844,422 |
Commitments and contingencies (Note 23) | ||
Temporary Equity: Redeemable non-controlling interests | 414,348 | 362,790 |
Starwood Property Trust, Inc. Stockholders’ Equity: | ||
Preferred stock, $0.01 per share, 100,000,000 shares authorized, no shares issued and outstanding | 0 | 0 |
Common stock, $0.01 per share, 500,000,000 shares authorized, 320,814,765 issued and 313,366,074 outstanding as of December 31, 2023 and 318,123,861 issued and 310,675,170 outstanding as of December 31, 2022 | 3,208 | 3,181 |
Additional paid-in capital | 5,864,670 | 5,807,087 |
Treasury stock (7,448,691 shares) | (138,022) | (138,022) |
Retained earnings | 505,881 | 769,237 |
Accumulated other comprehensive income | 15,352 | 20,955 |
Total Starwood Property Trust, Inc. Stockholders’ Equity | 6,251,089 | 6,462,438 |
Non-controlling interests in consolidated subsidiaries | 357,545 | 373,479 |
Total Permanent Equity | 6,608,634 | 6,835,917 |
Total Liabilities and Equity | 69,504,196 | 79,043,129 |
Nonrelated Party | ||
Liabilities: | ||
Accounts payable, accrued expenses and other liabilities | 293,442 | 298,999 |
Related Party | ||
Liabilities: | ||
Accounts payable, accrued expenses and other liabilities | 44,816 | 41,186 |
Primary beneficiary | ||
Assets: | ||
Investments of consolidated affordable housing fund, at fair value | 2,012,833 | $ 1,761,002 |
Total Assets | 47,800 | |
Liabilities: | ||
Total Liabilities | $ 10,300 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Allowance for credit losses | $ 309,039 | $ 99,413 |
Credit loss allowance | 13,143 | 3,182 |
Investment securities | 129,308 | 142,334 |
Intangible assets held at fair value | $ 19,384 | $ 17,790 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, shares issued (in shares) | 320,814,765 | 318,123,861 |
Common stock, shares outstanding (in shares) | 313,366,074 | 310,675,170 |
Treasury stock, shares (in shares) | 7,448,691 | 7,448,691 |
VIE assets | $ 69,504,196 | $ 79,043,129 |
VIE liabilities | 62,481,214 | 71,844,422 |
CLOs and SASB | ||
VIE assets | 4,300,000 | 4,500,000 |
VIE liabilities | $ 3,500,000 | $ 3,700,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 2 Months Ended | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenues: | ||||
Interest income from loans | $ 1,804,104 | $ 1,218,521 | $ 800,291 | |
Interest income from investment securities | 76,524 | 65,058 | 45,168 | |
Servicing fees | 33,121 | 40,359 | 38,739 | |
Rental income | 127,666 | 128,263 | 278,831 | |
Other revenues | 8,493 | 12,515 | 7,059 | |
Total revenues | 2,049,908 | 1,464,716 | 1,170,088 | |
Costs and expenses: | ||||
Management fees | 141,543 | 155,551 | 167,773 | |
Interest expense | 1,436,107 | 797,121 | 445,087 | |
General and administrative | 180,212 | 175,500 | 171,302 | |
Acquisition and investment pursuit costs | 925 | 3,400 | 1,184 | |
Costs of rental operations | 44,842 | 44,115 | 111,667 | |
Depreciation and amortization | 49,141 | 49,293 | 83,001 | |
Credit loss provision, net | 243,728 | 46,657 | 8,335 | |
Other expense | 1,820 | 1,314 | 708 | |
Total costs and expenses | 2,098,318 | 1,272,951 | 989,057 | |
Other income (loss): | ||||
Change in net assets related to consolidated VIEs | 181,688 | 124,001 | 162,333 | |
Change in fair value of servicing rights | 1,594 | 1,010 | 3,578 | |
Change in fair value of investment securities, net | 767 | (2,204) | (387) | |
Change in fair value of mortgage loans, net | 62,702 | (346,222) | 69,050 | |
Income from affordable housing fund investments | 755,736 | |||
Earnings (loss) from unconsolidated entities | 16,722 | (6,323) | 8,752 | |
Gain on sale of investments and other assets, net | 25,729 | 137,611 | 38,984 | |
(Loss) gain on derivative financial instruments, net | (38,605) | 334,015 | 82,363 | |
Foreign currency gain (loss), net | 60,834 | (96,956) | (36,292) | |
Loss on extinguishment of debt | (1,238) | (1,185) | (7,428) | |
Other loss, net | (135,552) | (93,710) | (7,314) | |
Total other income | 465,885 | 805,773 | 320,064 | |
Income before income taxes | 417,475 | 997,538 | 501,095 | |
Income tax benefit (provision) | 682 | 61,523 | (8,669) | |
Net income | 418,157 | 1,059,061 | 492,426 | |
Net income attributable to non-controlling interests | (78,944) | (187,586) | (44,687) | |
Net income attributable to Starwood Property Trust, Inc. | $ 339,213 | $ 871,475 | $ 447,739 | |
Earnings per share data attributable to Starwood Property Trust, Inc.: | ||||
Basic (in dollars per share) | $ 1.07 | $ 2.80 | $ 1.54 | |
Diluted (in dollars per share) | $ 1.07 | $ 2.74 | $ 1.52 | |
Primary beneficiary | ||||
Other income (loss): | ||||
Income from affordable housing fund investments | $ 6,425 | $ 291,244 | $ 755,736 | $ 6,425 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 418,157 | $ 1,059,061 | $ 492,426 |
Other comprehensive (loss) income (net change by component): | |||
Available-for-sale securities | (5,603) | (19,998) | (3,104) |
Foreign currency translation | 0 | 0 | 64 |
Other comprehensive loss | (5,603) | (19,998) | (3,040) |
Comprehensive income | 412,554 | 1,039,063 | 489,386 |
Less: Comprehensive income attributable to non-controlling interests | (78,944) | (187,586) | (44,687) |
Comprehensive income attributable to Starwood Property Trust, Inc. | $ 333,610 | $ 851,477 | $ 444,699 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Total Starwood Property Trust, Inc. Stockholders’ Equity | Total Starwood Property Trust, Inc. Stockholders’ Equity Cumulative Effect, Period of Adoption, Adjustment | Common stock | Additional Paid-in Capital | Additional Paid-in Capital Cumulative Effect, Period of Adoption, Adjustment | Treasury Stock | Retained Earnings (Accumulated Deficit) | Retained Earnings (Accumulated Deficit) Cumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Income | Non- Controlling Interests |
Beginning Balance at Dec. 31, 2020 | $ 0 | |||||||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||||||||||
Net income | 748 | |||||||||||
Contributions from non-controlling interests | 214,167 | |||||||||||
Ending Balance at Dec. 31, 2021 | 214,915 | |||||||||||
Beginning balance (in shares) at Dec. 31, 2020 | 292,091,601 | |||||||||||
Beginning balance at Dec. 31, 2020 | 4,862,576 | $ (1,536) | $ 4,488,898 | $ (1,536) | $ 2,921 | $ 5,209,739 | $ (3,755) | $ (138,022) | $ (629,733) | $ 2,219 | $ 43,993 | $ 373,678 |
Beginning balance (in shares) at Dec. 31, 2020 | 7,448,691 | |||||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||
Cumulative effect of investment company fair value adjustment | 1,236,476 | 1,236,476 | 1,236,476 | |||||||||
Proceeds from public offering of common stock and ATM Agreement (in shares) | 16,000,000 | |||||||||||
Proceeds from public offering of common stock and ATM Agreement | 393,120 | 393,120 | $ 160 | 392,960 | ||||||||
Proceeds from DRIP Plan (in shares) | 39,957 | |||||||||||
Proceeds from DRIP Plan | 966 | 966 | 966 | |||||||||
Redemption of Class A Units (in shares) | 853,681 | |||||||||||
Redemption of Class A Units | 0 | 17,738 | $ 9 | 17,729 | (17,738) | |||||||
Equity offering costs | (720) | (720) | (720) | |||||||||
Share-based compensation (in shares) | 2,568,525 | |||||||||||
Share-based compensation | 39,287 | 39,287 | $ 26 | 39,261 | ||||||||
Manager fee paid in stock (in shares) | 715,180 | |||||||||||
Manager fees paid in stock | 17,040 | 17,040 | $ 7 | 17,033 | ||||||||
Net income | 491,678 | 447,739 | 447,739 | 43,939 | ||||||||
Dividends declared | (563,595) | (563,595) | (563,595) | |||||||||
Other comprehensive loss, net | (3,040) | (3,040) | (3,040) | |||||||||
Contributions from non-controlling interests | 5,590 | 5,590 | ||||||||||
Distributions to non-controlling interests | (43,950) | 163 | 163 | (44,113) | ||||||||
Ending balance (in shares) at Dec. 31, 2021 | 312,268,944 | |||||||||||
Ending balance at Dec. 31, 2021 | 6,433,892 | 6,072,536 | $ 3,123 | 5,673,376 | $ (138,022) | 493,106 | 40,953 | 361,356 | ||||
Ending balance (in shares) at Dec. 31, 2021 | 7,448,691 | |||||||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||||||||||
Net income | 153,820 | |||||||||||
Distributions to non-controlling interests | (5,945) | |||||||||||
Ending Balance at Dec. 31, 2022 | 362,790 | |||||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||
Proceeds from public offering of common stock and ATM Agreement (in shares) | 2,168,710 | |||||||||||
Proceeds from public offering of common stock and ATM Agreement | 49,263 | 49,263 | $ 22 | 49,241 | ||||||||
Proceeds from DRIP Plan (in shares) | 48,357 | |||||||||||
Proceeds from DRIP Plan | 1,073 | 1,073 | 1,073 | |||||||||
Proceeds from employee stock purchase plan (in shares) | 67,965 | |||||||||||
Proceeds from employee stock purchase plan | 1,181 | 1,181 | $ 1 | 1,180 | ||||||||
Equity offering costs | (1,074) | (1,074) | (1,074) | |||||||||
Share-based compensation (in shares) | 1,724,165 | |||||||||||
Share-based compensation | 40,185 | 40,185 | $ 17 | 40,168 | ||||||||
Manager fee paid in stock (in shares) | 1,845,720 | |||||||||||
Manager fees paid in stock | 43,141 | 43,141 | $ 18 | 43,123 | ||||||||
Net income | 905,241 | 871,475 | 871,475 | 33,766 | ||||||||
Dividends declared | (595,344) | (595,344) | (595,344) | |||||||||
Other comprehensive loss, net | (19,998) | (19,998) | (19,998) | |||||||||
Contributions from non-controlling interests | 21,925 | 21,925 | ||||||||||
Distributions to non-controlling interests | $ (43,568) | (43,568) | ||||||||||
Ending balance (in shares) at Dec. 31, 2022 | 310,675,170 | 318,123,861 | ||||||||||
Ending balance at Dec. 31, 2022 | $ 6,835,917 | 6,462,438 | $ 3,181 | 5,807,087 | $ (138,022) | 769,237 | 20,955 | 373,479 | ||||
Ending balance (in shares) at Dec. 31, 2022 | 7,448,691 | 7,448,691 | ||||||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||||||||||
Net income | $ 58,410 | |||||||||||
Distributions to non-controlling interests | (6,852) | |||||||||||
Ending Balance at Dec. 31, 2023 | 414,348 | |||||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||
Proceeds from DRIP Plan (in shares) | 57,492 | |||||||||||
Proceeds from DRIP Plan | 1,091 | 1,091 | $ 1 | 1,090 | ||||||||
Redemption of Class A Units | 0 | 43 | 43 | (43) | ||||||||
Proceeds from employee stock purchase plan (in shares) | 123,327 | |||||||||||
Proceeds from employee stock purchase plan | 1,906 | 1,906 | $ 1 | 1,905 | ||||||||
Share-based compensation (in shares) | 1,667,034 | |||||||||||
Share-based compensation | 39,247 | 39,247 | $ 17 | 39,230 | ||||||||
Manager fee paid in stock (in shares) | 843,051 | |||||||||||
Manager fees paid in stock | 15,323 | 15,323 | $ 8 | 15,315 | ||||||||
Net income | 359,747 | 339,213 | 339,213 | 20,534 | ||||||||
Dividends declared | (602,569) | (602,569) | (602,569) | |||||||||
Other comprehensive loss, net | (5,603) | (5,603) | (5,603) | |||||||||
Contributions from non-controlling interests | 2,724 | 2,724 | ||||||||||
Distributions to non-controlling interests | $ (39,149) | (39,149) | ||||||||||
Ending balance (in shares) at Dec. 31, 2023 | 313,366,074 | 320,814,765 | ||||||||||
Ending balance at Dec. 31, 2023 | $ 6,608,634 | $ 6,251,089 | $ 3,208 | $ 5,864,670 | $ (138,022) | $ 505,881 | $ 15,352 | $ 357,545 | ||||
Ending balance (in shares) at Dec. 31, 2023 | 7,448,691 | 7,448,691 |
Consolidated Statements of Eq_2
Consolidated Statements of Equity (Parenthetical) - $ / shares | 12 Months Ended | ||||||||||||||
Dec. 15, 2023 | Sep. 15, 2023 | Jun. 15, 2023 | Mar. 16, 2023 | Dec. 09, 2022 | Sep. 16, 2022 | Jun. 15, 2022 | Mar. 14, 2022 | Dec. 15, 2021 | Sep. 15, 2021 | Jun. 14, 2021 | Mar. 11, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Stockholders' Equity [Abstract] | |||||||||||||||
Dividends declared per common share (in dollars per share) | $ 0.48 | $ 0.48 | $ 0.48 | $ 0.48 | $ 0.48 | $ 0.48 | $ 0.48 | $ 0.48 | $ 0.48 | $ 0.48 | $ 0.48 | $ 0.48 | $ 1.92 | $ 1.92 | $ 1.92 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash Flows from Operating Activities: | |||
Net income | $ 418,157 | $ 1,059,061 | $ 492,426 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Amortization of deferred financing costs, premiums and discounts on secured borrowings | 50,467 | 47,662 | 43,199 |
Amortization of discounts and deferred financing costs on unsecured senior notes | 9,365 | 8,782 | 7,076 |
Accretion of net discount on investment securities | (8,498) | (12,227) | (13,513) |
Accretion of net deferred loan fees and discounts | (67,112) | (62,557) | (57,948) |
Share-based compensation | 39,247 | 40,185 | 39,287 |
Manager fees paid in stock | 15,323 | 43,141 | 17,040 |
Change in fair value of investment securities | (767) | 2,204 | 387 |
Change in fair value of consolidated VIEs | (33,158) | 25,159 | (20,070) |
Change in fair value of servicing rights | (1,594) | (1,010) | (3,578) |
Change in fair value of loans | (62,702) | 346,222 | (69,050) |
Change in fair value of affordable housing fund investments | (251,831) | (720,693) | (402) |
Change in fair value of derivatives | 128,218 | (329,204) | (90,126) |
Foreign currency (gain) loss, net | (60,834) | 96,956 | 36,292 |
Gain on sale of investments and other assets | (25,729) | (137,611) | (38,984) |
Impairment charges on properties and related intangibles | 124,902 | 55 | 0 |
Credit loss provision, net | 243,728 | 46,657 | 8,335 |
Depreciation and amortization | 54,296 | 53,941 | 84,591 |
(Earnings) loss from unconsolidated entities | (16,722) | 6,323 | (8,752) |
Distributions of earnings from unconsolidated entities | 8,847 | 5,354 | 4,708 |
Loss on extinguishment of debt | 1,238 | 986 | 7,428 |
Origination and purchase of loans held-for-sale, net of principal collections | (571,005) | (4,437,448) | (5,172,721) |
Proceeds from sale of loans held-for-sale | 770,733 | 4,153,003 | 3,831,712 |
Changes in operating assets and liabilities: | |||
Related-party payable, net | 3,630 | (35,185) | 37,201 |
Accrued and capitalized interest receivable, less purchased interest | (155,831) | (201,500) | (136,772) |
Other assets | (65,780) | 44,118 | (28,437) |
Accounts payable, accrued expenses and other liabilities | (17,991) | 171,367 | 40,696 |
Net cash provided by (used in) operating activities | 528,597 | 213,741 | (989,975) |
Cash Flows from Investing Activities: | |||
Origination, purchase and funding of loans held-for-investment | (2,717,720) | (5,544,012) | (8,637,213) |
Proceeds from principal collections on loans | 3,337,402 | 2,096,777 | 4,024,958 |
Proceeds from loans sold | 95,271 | 101,683 | 344,221 |
Purchase and funding of investment securities | (11,578) | (86,512) | (198,358) |
Proceeds from sales and redemptions of investment securities | 3,042 | 0 | 0 |
Proceeds from principal collections on investment securities | 90,348 | 115,947 | 87,450 |
Proceeds from sales of real estate | 73,569 | 203,702 | 98,210 |
Purchases and additions to properties and other assets | (25,085) | (25,225) | (26,272) |
Investments in unconsolidated entities | (2,603) | (461) | (1,312) |
Distribution of capital from unconsolidated entities | 10,977 | 3,375 | 30,448 |
Cash resulting from initial consolidation of entities | 824 | 617 | 0 |
Cash reclassified to investments of affordable housing fund | 0 | 0 | (28,094) |
Payments for purchase or early termination of derivatives | (42,411) | (19,077) | (33,902) |
Proceeds from early termination of derivatives | 43,038 | 202,880 | 58,210 |
Net cash provided by (used in) investing activities | 855,074 | (2,950,306) | (4,281,654) |
Cash Flows from Financing Activities: | |||
Proceeds from borrowings | 6,559,959 | 13,521,148 | 17,436,866 |
Principal repayments on and repurchases of borrowings | (7,473,900) | (9,888,088) | (11,929,179) |
Payment of deferred financing costs | (20,990) | (69,820) | (71,858) |
Proceeds from common stock issuances | 2,997 | 51,517 | 394,086 |
Payment of equity offering costs | 0 | (1,074) | (720) |
Payment of dividends | (601,192) | (591,457) | (553,930) |
Contributions from non-controlling interests | 2,724 | 21,925 | 219,757 |
Distributions to non-controlling interests | (45,368) | (49,452) | (43,950) |
Issuance of debt of consolidated VIEs | 0 | 0 | 69,398 |
Repayment of debt of consolidated VIEs | (48,435) | (290,232) | (767,427) |
Distributions of cash from consolidated VIEs | 169,642 | 93,412 | 120,060 |
Net cash (used in) provided by financing activities | (1,454,563) | 2,797,879 | 4,873,103 |
Net (decrease) increase in cash, cash equivalents and restricted cash | (70,892) | 61,314 | (398,526) |
Cash, cash equivalents and restricted cash, beginning of period | 382,133 | 321,914 | 722,162 |
Effect of exchange rate changes on cash | 731 | (1,095) | (1,722) |
Cash, cash equivalents and restricted cash, end of period | 311,972 | 382,133 | 321,914 |
Supplemental disclosure of cash flow information: | |||
Cash paid for interest | 1,351,533 | 671,186 | 386,918 |
Income taxes paid (refunded), net | 1,670 | (7,862) | 7,793 |
Supplemental disclosure of non-cash investing and financing activities: | |||
Dividends declared, but not yet paid | 153,705 | 152,443 | 148,527 |
Consolidation of VIEs (VIE asset/liability additions) | 722,039 | 4,361,325 | 5,332,754 |
Deconsolidation of VIEs (VIE asset/liability reductions) | 0 | 730,013 | 935,855 |
Net assets acquired through foreclosure, equity control or conversion to equity interest: | |||
Assets acquired, less cash | 101,963 | 406,705 | 36,308 |
Liabilities assumed | 983 | 95,691 | 0 |
Loan principal collections temporarily held at master servicer | 124,314 | 429 | 31,681 |
Reclassification of loans held-for-investment to loans held-for-sale | 41,392 | 113,710 | 267,557 |
Reclassification of loans held-for-sale to loans held-for-investment | 0 | 0 | 155,548 |
Lease liabilities arising from obtaining right-of-use assets | 0 | 29,821 | 1,430 |
Unsettled derivative transactions | 0 | 2,323 | 0 |
Transfer of loans from VIE assets to residential loans upon redemption of consolidated RMBS trusts | 0 | 0 | 526,679 |
Redemption of Class A Units for common stock | $ 0 | $ 0 | $ 17,738 |
Business and Organization
Business and Organization | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business and Organization | Business and Organization Starwood Property Trust, Inc. (“STWD” and, together with its subsidiaries, “we” or the “Company”) is a Maryland corporation that commenced operations in August 2009, upon the completion of our initial public offering. We are focused primarily on originating, acquiring, financing and managing mortgage loans and other real estate investments in the United States (“U.S.”), Europe and Australia. As market conditions change over time, we may adjust our strategy to take advantage of changes in interest rates and credit spreads as well as economic and credit conditions. We have four reportable business segments as of December 31, 2023 and we refer to the investments within these segments as our target assets: • Real estate commercial and residential lending (the “Commercial and Residential Lending Segment”)—engages primarily in originating, acquiring, financing and managing commercial first mortgages, non-agency residential mortgages (“residential loans”), subordinated mortgages, mezzanine loans, preferred equity, commercial mortgage-backed securities (“CMBS”), residential mortgage-backed securities (“RMBS”) and other real estate and real estate-related debt investments in the U.S., Europe and Australia (including distressed or non-performing loans). Our residential loans are secured by a first mortgage lien on residential property and primarily consist of non-agency residential loans that are not guaranteed by any U.S. Government agency or federally chartered corporation. • Infrastructure lending (the “Infrastructure Lending Segment”)—engages primarily in originating, acquiring, financing and managing infrastructure debt investments. • Real estate property (the “Property Segment”)—engages primarily in acquiring and managing equity interests in stabilized commercial real estate properties, including multifamily properties and commercial properties subject to net leases, that are held for investment. • Real estate investing and servicing (the “Investing and Servicing Segment”)—includes (i) a servicing business in the U.S. that manages and works out problem assets, (ii) an investment business that selectively acquires and manages unrated, investment grade and non-investment grade rated CMBS, including subordinated interests of securitization and resecuritization transactions, (iii) a mortgage loan business which originates conduit loans for the primary purpose of selling these loans into securitization transactions and (iv) an investment business that selectively acquires commercial real estate assets, including properties acquired from CMBS trusts. Our segments exclude the consolidation of securitization variable interest entities (“VIEs”). We are organized and conduct our operations to qualify as a real estate investment trust (“REIT”) under the Internal Revenue Code of 1986, as amended (the “Code”). As such, we will generally not be subject to U.S. federal corporate income tax on that portion of our net income that is distributed to stockholders if we distribute at least 90% of our taxable income to our stockholders by prescribed dates and comply with various other requirements. We are organized as a holding company and conduct our business primarily through our various wholly-owned subsidiaries. We are externally managed and advised by SPT Management, LLC (our “Manager”) pursuant to the terms of a management agreement. Our Manager is controlled by Barry Sternlicht, our Chairman and Chief Executive Officer. Our Manager is an affiliate of Starwood Capital Group Global, L.P., a privately-held private equity firm founded by Mr. Sternlicht. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Balance Sheet Presentation of Securitization Variable Interest Entities We operate investment businesses that acquire unrated, investment grade and non-investment grade rated CMBS and RMBS. These securities represent interests in securitization structures (commonly referred to as special purpose entities, or “SPEs”). These SPEs are structured as pass through entities that receive principal and interest on the underlying collateral and distribute those payments to the certificate holders. Under accounting principles generally accepted in the United States of America (“GAAP”), SPEs typically qualify as VIEs. These are entities that, by design, either (1) lack sufficient equity to permit the entity to finance its activities without additional subordinated financial support from other parties, or (2) have equity investors that do not have the ability to make significant decisions relating to the entity’s operations through voting rights, or do not have the obligation to absorb the expected losses, or do not have the right to receive the residual returns of the entity. Because we often serve as the special servicer or servicing administrator of the trusts in which we invest, or we have the ability to remove and replace the special servicer without cause, consolidation of these structures is required pursuant to GAAP as outlined in detail below. This results in a consolidated balance sheet which presents the gross assets and liabilities of the VIEs. The assets and other instruments held by these VIEs are restricted and can only be used to fulfill the obligations of the entity. Additionally, the obligations of the VIEs do not have any recourse to the general credit of any other consolidated entities, nor to us as the consolidator of these VIEs. The VIE liabilities initially represent investment securities on our balance sheet (pre-consolidation). Upon consolidation of these VIEs, our associated investment securities are eliminated, as is the interest income related to those securities. Similarly, the fees we earn in our roles as special servicer of the bonds issued by the consolidated VIEs or as collateral administrator of the consolidated VIEs are also eliminated. Finally, a portion of the identified servicing intangible associated with the eliminated fee streams is eliminated in consolidation. Refer to the segment data in Note 24 for a presentation of our business segments without consolidation of these VIEs. Basis of Accounting and Principles of Consolidation The accompanying consolidated financial statements include our accounts and those of our consolidated subsidiaries and VIEs. Intercompany amounts have been eliminated in consolidation. Entities not deemed to be VIEs are consolidated if we own a majority of the voting securities or interests or hold the general partnership interest, except in those instances in which the minority voting interest owner or limited partner can remove us as general partner without cause, dissolve the partnership without cause or effectively participate through substantive participative rights. Substantive participative rights include the ability to select, terminate and set compensation of the investee’s management, if applicable, and the ability to participate in capital and operating decisions of the investee, including budgets, in the ordinary course of business. We invest in entities with varying structures, many of which do not have voting securities or interests, such as general partnerships, limited partnerships, and limited liability companies. In many of these structures, control of the entity rests with the general partners or managing members, while other members hold passive interests. The general partner or managing member may hold anywhere from a relatively small percentage of the total financial interests to a majority of the financial interests. For entities not deemed to be VIEs, where we serve as the sole general partner or managing member, we are considered to have the controlling financial interest and therefore the entity is consolidated, regardless of our financial interest percentage, unless there are other limited partners or investing members that can remove us as general partner without cause, dissolve the partnership without cause or effectively participate through substantive participative rights. In those circumstances where we, as majority controlling interest owner, can be removed without cause or cannot cause the entity to take actions that are significant in the ordinary course of business, because such actions could be vetoed by the minority controlling interest owner, we do not consolidate the entity. When we consolidate entities other than securitization VIEs, the third party ownership interests are reflected as non-controlling interests in consolidated subsidiaries, a separate component of equity, in our consolidated balance sheet. When we consolidate securitization VIEs, the third party ownership interests are reflected as VIE liabilities in our consolidated balance sheet because the beneficial interests payable to these third parties are legally issued in the form of debt. Our presentation of net income attributes earnings to controlling and non-controlling interests. Variable Interest Entities In addition to the securitization VIEs, we have financed pools of our loans through collateralized loan obligations (“CLOs”) and a single asset securitization (“SASB”), which are considered VIEs. We also hold interests in certain other entities which are considered VIEs as the limited partners of those entities with equity at risk do not collectively possess (i) the right to remove the general partner or dissolve the partnership without cause or (ii) the right to participate in significant decisions made by the partnership. We evaluate all of our interests in VIEs for consolidation. When our interests are determined to be variable interests, we assess whether we are deemed to be the primary beneficiary of the VIE. The primary beneficiary of a VIE is required to consolidate the VIE. Accounting Standards Codification (“ASC”) 810, Consolidation , defines the primary beneficiary as the party that has both (i) the power to direct the activities of the VIE that most significantly impact its economic performance, and (ii) the obligation to absorb losses and the right to receive benefits from the VIE which could be potentially significant. We consider our variable interests as well as any variable interests of our related parties in making this determination. Where both of these factors are present, we are deemed to be the primary beneficiary and we consolidate the VIE. Where either one of these factors is not present, we are not the primary beneficiary and do not consolidate the VIE. To assess whether we have the power to direct the activities of a VIE that most significantly impact the VIE’s economic performance, we consider all facts and circumstances, including our role in establishing the VIE and our ongoing rights and responsibilities. This assessment includes: (i) identifying the activities that most significantly impact the VIE’s economic performance; and (ii) identifying which party, if any, has power over those activities. In general, the parties that make the most significant decisions affecting the VIE or have the right to unilaterally remove those decision makers are deemed to have the power to direct the activities of a VIE. The right to remove the decision maker in a VIE must be exercisable without cause for the decision maker to not be deemed the party that has the power to direct the activities of a VIE. To assess whether we have the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE, we consider all of our economic interests, including debt and equity investments, servicing fees and other arrangements deemed to be variable interests in the VIE. This assessment requires that we apply judgment in determining whether these interests, in the aggregate, are considered potentially significant to the VIE. Factors considered in assessing significance include: the design of the VIE, including its capitalization structure; subordination of interests; payment priority; relative share of interests held across various classes within the VIE’s capital structure; and the reasons why the interests are held by us. Our purchased investment securities include unrated and non-investment grade rated securities issued by securitization trusts. In certain cases, we may contract to provide special servicing activities for these trusts, or, as holder of the controlling class, we may have the right to name and remove the special servicer for these trusts. In our role as special servicer, we provide services on defaulted loans within the trusts, such as foreclosure or work-out procedures, as permitted by the underlying contractual agreements. In exchange for these services, we receive a fee. These rights give us the ability to direct activities that could significantly impact the trust’s economic performance. However, in those instances where an unrelated third party has the right to unilaterally remove us as special servicer without cause, we do not have the power to direct activities that most significantly impact the trust’s economic performance. We evaluated all of our positions in such investments for consolidation. For securitization VIEs in which we are determined to be the primary beneficiary, all of the underlying assets, liabilities and equity of the structures are recorded on our books, and the initial investment, along with any associated unrealized holding gains and losses, are eliminated in consolidation. Similarly, the interest income earned from these structures, as well as the fees paid by these trusts to us in our capacity as special servicer, are eliminated in consolidation. Further, a portion of the identified servicing intangible asset associated with the servicing fee streams, and the corresponding amortization or change in fair value of the servicing intangible asset, are also eliminated in consolidation. We perform ongoing reassessments of: (i) whether any entities previously evaluated under the majority voting interest framework have become VIEs, based on certain events, and therefore subject to the VIE consolidation framework, and (ii) whether changes in the facts and circumstances regarding our involvement with a VIE causes our consolidation conclusion regarding the VIE to change. We elect the fair value option for initial and subsequent recognition of the assets and liabilities of our consolidated securitization VIEs. Interest income and interest expense associated with these VIEs are no longer relevant on a standalone basis because these amounts are already reflected in the fair value changes. We have elected to present these items in a single line on our consolidated statements of operations. The residual difference shown on our consolidated statements of operations in the line item “Change in net assets related to consolidated VIEs” represents our beneficial interest in the VIEs. We separately present the assets and liabilities of our consolidated securitization VIEs as individual line items on our consolidated balance sheets. The liabilities of our consolidated securitization VIEs consist solely of obligations to the bondholders of the related trusts, and are thus presented as a single line item entitled “VIE liabilities.” The assets of our consolidated securitization VIEs consist principally of loans, but at times, also include foreclosed loans which have been temporarily converted into real estate owned (“REO”). These assets in the aggregate are likewise presented as a single line item entitled “VIE assets.” Loans comprise the vast majority of our securitization VIE assets and are carried at fair value due to the election of the fair value option. When an asset becomes REO, it is due to non-performance of the loan. Because the loan is already at fair value, the carrying value of an REO asset is also initially at fair value. Furthermore, when we consolidate a trust, any existing REO would be consolidated at fair value. Once an asset becomes REO, its disposition time is relatively short. As a result, the carrying value of an REO generally approximates fair value under GAAP. In addition to sharing a similar measurement method as the loans in a trust, the securitization VIE assets as a whole can only be used to settle the obligations of the consolidated VIE. The assets of our securitization VIEs are not individually accessible by the bondholders, which creates inherent limitations from a valuation perspective. Also creating limitations from a valuation perspective is our role as special servicer, which provides us very limited visibility, if any, into the performing loans of a trust. REO assets generally represent a very small percentage of the overall asset pool of a trust. In new issue trusts there are no REO assets. We estimate that REO assets constitute approximately 2% of our consolidated securitization VIE assets, with the remaining 98% representing loans. However, it is important to note that the fair value of our securitization VIE assets is determined by reference to our securitization VIE liabilities as permitted under Accounting Standard Update (“ASU”) 2014-13, Consolidation (Topic 810): Measuring the Financial Assets and the Financial Liabilities of a Consolidated Collateralized Financing Entity . In other words, our VIE liabilities are more reliably measurable than the VIE assets, resulting in our current measurement methodology which utilizes this value to determine the fair value of our securitization VIE assets as a whole. As a result, these percentages are not necessarily indicative of the relative fair values of each of these asset categories if the assets were to be valued individually. Due to our accounting policy election under ASU 2014-13, separately presenting two different asset categories would result in an arbitrary assignment of value to each, with one asset category representing a residual amount, as opposed to its fair value. However, as a pool, the fair value of the assets in total is equal to the fair value of the liabilities. For these reasons, the assets of our securitization VIEs are presented in the aggregate. Fair Value Option The guidance in ASC 825, Financial Instruments , provides a fair value option election that allows entities to make an irrevocable election of fair value as the initial and subsequent measurement attribute for certain eligible financial assets and liabilities. Unrealized gains and losses on items for which the fair value option has been elected are reported in earnings. The decision to elect the fair value option is determined on an instrument by instrument basis and must be applied to an entire instrument and is irrevocable once elected. Assets and liabilities measured at fair value pursuant to this guidance are required to be reported separately in our consolidated balance sheets from those instruments using another accounting method. We have elected the fair value option for certain eligible financial assets and liabilities of our consolidated securitization VIEs, residential loans held-for-investment, loans held-for-sale originated or acquired for future securitization and purchased CMBS issued by VIEs we could consolidate in the future. The fair value elections for VIE and securitization related items were made in order to mitigate accounting mismatches between the carrying value of the instruments and the related assets and liabilities that we consolidate at fair value. The fair value elections for residential loans held-for-investment were made in order to maintain consistency across all our residential loans. The fair value elections for mortgage loans held-for-sale were made due to the expected short-term holding period of these instruments. Fair Value Measurements We measure our mortgage-backed securities, investments of consolidated affordable housing fund, derivative assets and liabilities, domestic servicing rights intangible asset and any assets or liabilities where we have elected the fair value option at fair value. When actively quoted observable prices are not available, we either use implied pricing from similar assets and liabilities or valuation models based on net present values of estimated future cash flows, adjusted as appropriate for liquidity, credit, market and/or other risk factors. As discussed above, we measure the assets and liabilities of consolidated securitization VIEs at fair value pursuant to our election of the fair value option. The securitization VIEs in which we invest are “static”; that is, no reinvestment is permitted, and there is no active management of the underlying assets. In determining the fair value of the assets and liabilities of the securitization VIEs, we maximize the use of observable inputs over unobservable inputs. Refer to Note 21 for further discussion regarding our fair value measurements. Business Combinations Under ASC 805, Business Combinations , the acquirer in a business combination must recognize, with certain exceptions, the fair values of assets acquired, liabilities assumed, and non-controlling interests when the acquisition constitutes a change in control of the acquired entity. As goodwill is calculated as a residual, all goodwill of the acquired business, not just the acquirer’s share, is recognized under this “full goodwill” approach. During the measurement period, a period which shall not exceed one year, we prospectively adjust the provisional amounts recognized to reflect new information obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the measurement of the amounts recognized. We apply the asset acquisition provisions of ASC 805 in accounting for acquisitions of real estate with in-place leases where substantially all of the fair value of the assets acquired is concentrated in either a single identifiable asset or group of similar identifiable assets. This results in the acquired properties being recognized initially at their purchase price inclusive of acquisition costs, which are capitalized. All other acquisitions of real estate with in-place leases are accounted for in accordance with the business combination provisions of ASC 805. We also apply the asset acquisition provisions of ASC 805 for acquired real estate assets where a lease is entered into concurrently with the acquisition of the asset, such as in sale leaseback transactions. Cash and Cash Equivalents Cash and cash equivalents include cash in banks and short‑term investments. Short‑term investments are comprised of highly liquid instruments with original maturities of three months or less. The Company maintains its cash and cash equivalents in multiple financial institutions and at times these balances exceed federally insurable limits. Restricted Cash Restricted cash includes cash and cash equivalents that are legally or contractually restricted as to withdrawal or usage and primarily includes (i) cash collateral associated with derivative financial instruments, (ii) loan payments received by our Infrastructure Lending Segment which are restricted by our lender and periodically applied, in part, to the outstanding balance of the Infrastructure Lending debt facility and (iii) funds held on behalf of borrowers and tenants. Loans Held-for-Investment Loans that are held for investment (“HFI”) are carried at cost, net of unamortized acquisition premiums or discounts, loan fees and origination costs, as applicable, and net of credit loss allowances as discussed below, unless we have elected to apply the fair value option at purchase. Loans Held-For-Sale Our loans that we intend to sell or liquidate in the short-term are classified as held-for-sale and are carried at the lower of amortized cost or fair value, unless we have elected to apply the fair value option at origination or purchase. We periodically enter into derivative financial instruments to hedge unpredictable changes in fair value of loans held-for-sale, including changes resulting from both interest rates and credit quality. Because these derivatives are not designated, changes in their fair value are recorded in earnings. In order to best reflect the results of the hedged loan portfolio in earnings, we have elected the fair value option for these loans. As a result, changes in the fair value of the loans are also recorded in earnings. Investment Securities We designate our debt investment securities as held-to-maturity (“HTM”), available-for-sale (“AFS”), or trading depending on our investment strategy and ability to hold such securities to maturity. HTM debt securities where we have not elected to apply the fair value option are stated at cost plus any premiums or discounts, which are amortized or accreted through the consolidated statements of operations using the effective interest method. Debt securities we (i) do not hold for the purpose of selling in the near-term, or (ii) may dispose of prior to maturity, are classified as AFS and are carried at fair value in the accompanying financial statements. Unrealized gains or losses on AFS debt securities where we have not elected the fair value option are reported as a component of accumulated other comprehensive income (“AOCI”) in stockholders’ equity. Our HTM and AFS debt securities are also subject to credit loss allowances as discussed below. Our only equity investment security is carried at fair value, with unrealized holding gains and losses recorded in earnings. Credit Losses Loans and Debt Securities Measured at Amortized Cost ASC 326, Financial Instruments – Credit Losses , became effective for the Company on January 1, 2020. ASC 326 mandates the use of a current expected credit loss model (“CECL”) for estimating future credit losses of certain financial instruments measured at amortized cost, instead of the “incurred loss” credit model previously required under GAAP. The CECL model requires the consideration of possible credit losses over the life of an instrument as opposed to only estimating credit losses upon the occurrence of a discrete loss event under the previous “incurred loss” methodology. The CECL model applies to our HFI loans and our HTM debt securities which are carried at amortized cost, including future funding commitments and accrued interest receivable related to those loans and securities. However, as permitted by ASC 326, we have elected not to measure an allowance for credit losses on accrued interest receivable (which is classified separately on our consolidated balance sheet), but rather write off in a timely manner by reversing interest income and/or cease accruing interest that would likely be uncollectible. As we do not have a history of realized credit losses on our HFI loans and HTM securities, we have subscribed to third party database services to provide us with historical industry losses for both commercial real estate and infrastructure loans. Using these losses as a benchmark, we determine expected credit losses for our loans and securities on a collective basis within our commercial real estate and infrastructure portfolios. See Note 5 for further discussion of our methodologies. We also evaluate each loan and security measured at amortized cost for credit deterioration at least quarterly. Credit deterioration occurs when it is deemed probable that we will not be able to collect all amounts due according to the contractual terms of the loan or security. If a loan or security is considered to be credit deteriorated, we depart from the industry loss rate approach described above and determine the credit loss allowance as any excess of the amortized cost basis of the loan or security over (i) the present value of expected future cash flows discounted at the contractual effective interest rate or (ii) the fair value of the collateral, if repayment is expected solely from the collateral. Available-for-Sale Debt Securities Separate provisions of ASC 326 apply to our AFS debt securities, which are carried at fair value with unrealized gains and losses reported as a component of AOCI. We are required to establish an initial credit loss allowance for those securities that are purchased with credit deterioration (“PCD”) by grossing up the amortized cost basis of each security and providing an offsetting credit loss allowance for the difference between expected cash flows and contractual cash flows, both on a present value basis. Subsequently, cumulative adverse changes in expected cash flows on our AFS debt securities are recognized currently as an increase to the allowance for credit losses. However, the allowance is limited to the amount by which the AFS debt security’s amortized cost exceeds its fair value. Favorable changes in expected cash flows are first recognized as a decrease to the allowance for credit losses (recognized currently in earnings). Such changes would be recognized as a prospective yield adjustment only when the allowance for credit losses is reduced to zero. A change in expected cash flows that is attributable solely to a change in a variable interest reference rate does not result in a credit loss and is accounted for as a prospective yield adjustment. Properties Held-For-Investment Properties, net, as reported on our consolidated balance sheets, consist of commercial real estate properties held-for-investment and are recorded at cost, less accumulated depreciation and impairments, if any. Properties consist primarily of land, buildings and improvements. Land is not depreciated, and buildings and improvements are depreciated on a straight-line basis over their estimated useful lives. Ordinary repairs and maintenance are expensed as incurred; major replacements and betterments are capitalized and depreciated on a straight-line basis over their estimated useful lives. We review properties for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. Recoverability is determined by comparing the carrying amount of the property to the undiscounted future net cash flows it is expected to generate. If such carrying amount exceeds the expected undiscounted future net cash flows, we adjust the carrying amount of the property to its estimated fair value. Properties Held-For-Sale Properties and any associated intangible assets are presented within properties held-for-sale on our consolidated balance sheet when the sale of the property is considered probable to occur within one year, at which time we cease depreciation and amortization of the property and the associated intangibles. Held-for-sale properties are reported at the lower of their carrying value or fair value less costs to sell. If any associated debt is expected to be assumed by the buyer, such debt is separately presented within debt related to properties held-for-sale on our consolidated balance sheet. Investments of Consolidated Affordable Housing Fund On November 5, 2021, we established Woodstar Portfolio Holdings, LLC (the “Woodstar Fund”), an investment fund which holds our Woodstar multifamily affordable housing portfolios consisting of 59 properties with 15,057 units located in Central and South Florida. As managing member of the Woodstar Fund, we manage interests purchased by third party investors seeking capital appreciation and an ongoing return, for which we earn (i) a management fee based on each investor’s share of total Woodstar Fund equity; and (ii) an incentive distribution if the Woodstar Fund’s returns exceed an established threshold. In connection with the establishment of the Woodstar Fund, we entered into subscription and other related agreements with certain third party institutional investors to sell, through a feeder fund structure, an aggregate 20.6% interest in the Woodstar Fund for an initial aggregate subscription price of $216.0 million, which was adjusted to $214.2 million post-closing. The Woodstar Fund has an initial term of eight years. Effective with the third party interest sale, the Woodstar Fund has the characteristics of an investment company under ASC 946, Financial Services – Investment Companies. Accordingly, the Woodstar Fund is required to carry the investments in its properties at fair value, with a cumulative effect adjustment between the fair value and previous carrying value of its investments recognized in stockholders’ equity as of November 5, 2021, the date of the Woodstar Fund’s change in status to an investment company. Such cumulative effect adjustment amounted to $1.2 billion, as reflected in our consolidated statement of equity for the year ended December 31, 2021. Because we are the primary beneficiary of the Woodstar Fund, which is a VIE (as discussed in Note 16), we consolidate the accounts of the Woodstar Fund into our consolidated financial statements, retaining the fair value basis of accounting for its investments. Realized and unrealized changes in the fair value of the Woodstar Fund’s property investments, and distributions thereon, are recognized in the “Income from affordable housing fund investments” caption within the other income (loss) section of our consolidated statements of operations. See Note 8 for further details regarding the Woodstar Fund’s investments and related income and Note 18 with respect to its contingently redeemable non-controlling interests which are classified as “Temporary Equity” in our consolidated balance sheet. Investments in Unconsolidated Entities We own non‑controlling equity interests in various privately‑held partnerships and limited liability companies. Unless we elect the fair value option under ASC 825, we use the fair value practicability election described below to account for investments in which our interest is so minor that we have virtually no influence over the underlying investees. We use the equity method to account for all other non‑controlling interests in partnerships and limited liability companies. Equity method investments are initially recorded at cost and subsequently adjusted for our share of income or loss, as well as contributions made or distributions received. Our other equity investments set forth in Note 9 do not have readily determinable fair values. Therefore, we have elected the fair value practicability exception under ASC 321, Equity Securities , whereby we measure those investments within its scope at cost, less any impairment, plus or minus observable price changes from orderly transactions of identical or similar investments of the same issuer. We review our equity method and other investments not subject to the fair value practicability election for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. For our investments under the fair value practicability election, we perform a qualitative assessment to identify impairment at the end of each reporting period. An impairment loss is measured based on the excess of the carrying amount of an investment over its estimated fair value. Impairment analyses are based on current plans, intended holding periods, estimated fair values of underlying assets and available information at the time the analyses are prepared. Goodwill Goodwill is not amortized, but rather tested for impairment annually or more frequently if events or changes in circumstances indicate potential impairment. Goodwill at December 31, 2023 and 2022 represents the excess of the consideration paid over the fair value of net assets acquired in connection with the acquisitions of LNR Property LLC (“LNR”) in April 2013 and the Infrastructure Lending Segment in September and October 2018. In testing goodwill for impairment, we follow ASC 350, Intangibles—Goodwill and Other , which permits a qualitative assessment of whether it is more likely than not that the fair value of a reporting unit is less than its carrying value including goodwill. If the qualitative assessment determines that it is not more likely than not that the fair value of a reporting unit is less than its carrying value including goodwill, then no impairment is determined to exist for the reporting unit. However, if the qualitative assessment determines that it is more likely than not that the fair value of the reporting unit is less than its carrying value including goodwill, or we choose not to perform the qualitative assessment, then we compare the fair value of that reporting unit with its carrying value, including goodwill |
Acquisitions and Divestitures
Acquisitions and Divestitures | 12 Months Ended |
Dec. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions and Divestitures | Acquisitions and Divestitures Investing and Servicing Segment Property Portfolio (“REIS Equity Portfolio”) During the year ended December 31, 2023, we sold four operating properties, including a controlling financial interest in a subsidiary within the REIS Equity Portfolio, for $63.7 million. We recognized a total gain of $25.6 million within gain on sale of investments and other assets in our consolidated statement of operations, of which $10.2 million related to the deconsolidation of the subsidiary. During the year ended December 31, 2022, we sold three operating properties within the REIS Equity Portfolio for $92.1 million and recognized a total gain of $50.9 million within gain on sale of investments and other assets in our consolidated statement of operations, of which $0.6 million was attributable to non-controlling interests. During the year ended December 31, 2021, we sold two operating properties within the REIS Equity Portfolio for $68.7 million and recognized a total gain of $22.2 million within gain on sale of investments and other assets in our consolidated statement of operations. Commercial and Residential Lending Segment During the year ended December 31, 2023, we sold four units in a residential conversion project in New York for $12.1 million within the Commercial and Residential Lending Segment. In connection with these sales, there was no gain or loss recognized in our consolidated statement of operations. During the year ended December 31, 2022, we sold a distribution facility located in Orlando, Florida that was previously acquired in April 2019 through foreclosure of a loan with a carrying value of $18.5 million. The property was sold for $114.8 million and we recognized a gain of $86.6 million within gain on sale of investments and other assets in our consolidated statement of operations. During the year ended December 31, 2021, we sold a grocery distribution facility located in Montgomery, Alabama that was previously acquired in March 2019 through foreclosure of a loan with a carrying value of $9.0 million ($20.9 million unpaid principal balance net of an $8.3 million allowance and $3.6 million of unamortized discount) at the foreclosure date. The property was sold for $31.2 million and we recognized a gain of $17.7 million within gain on sale of investments and other assets in our consolidated statement of operations. Woodstar Fund On November 5, 2021, we established the Woodstar Fund and sold a 20.6% interest to third parties. See further discussion in Notes 2 and 8. Acquisitions |
Restricted Cash
Restricted Cash | 12 Months Ended |
Dec. 31, 2023 | |
Cash and Cash Equivalents [Abstract] | |
Restricted Cash | Restricted Cash A summary of our restricted cash as of December 31, 2023 and 2022 is as follows (amounts in thousands): As of December 31, 2023 2022 Cash collateral for derivative financial instruments $ 80,219 $ 69,607 Cash restricted by lender 34,450 49,727 Funds held on behalf of borrowers and tenants 1,300 1,255 Other restricted cash 1,343 483 $ 117,312 $ 121,072 |
Loans
Loans | 12 Months Ended |
Dec. 31, 2023 | |
Receivables [Abstract] | |
Loans | Loans Our loans held-for-investment are accounted for at amortized cost and our loans held-for-sale are accounted for at the lower of cost or fair value, unless we have elected the fair value option for either. The following tables summarize our investments in mortgages and loans as of December 31, 2023 and 2022 (dollars in thousands): December 31, 2023 Carrying Face Weighted Weighted Loans held-for-investment: Commercial loans: First mortgages (3) $ 14,956,646 $ 15,005,827 9.0 % 2.8 Subordinated mortgages (4) 76,560 76,882 14.8 % 2.2 Mezzanine loans (3) 273,146 274,899 13.7 % 2.7 Other 71,012 71,843 9.6 % 1.8 Total commercial loans 15,377,364 15,429,451 Infrastructure first priority loans 2,505,924 2,550,244 9.5 % 3.9 Total loans held-for-investment 17,883,288 17,979,695 Loans held-for-sale: Residential, fair value option 2,604,594 2,909,126 4.5 % N/A (5) Commercial, fair value option 41,043 45,400 5.5 % 5.2 Total loans held-for-sale 2,645,637 2,954,526 Total gross loans 20,528,925 $ 20,934,221 Credit loss allowances: Commercial loans held-for-investment (298,775) Infrastructure loans held-for-investment (10,264) Total allowances (309,039) Total net loans $ 20,219,886 December 31, 2022 Loans held-for-investment: Commercial loans: First mortgages (3) $ 15,562,452 $ 15,648,358 7.9 % 3.3 Subordinated mortgages (4) 71,100 72,118 13.6 % 3.2 Mezzanine loans (3) 445,363 442,339 12.9 % 1.9 Other 58,393 59,393 8.2 % 1.7 Total commercial loans 16,137,308 16,222,208 Infrastructure first priority loans 2,363,544 2,395,762 8.6 % 3.9 Total loans held-for-investment 18,500,852 18,617,970 Loans held-for-sale: Residential, fair value option 2,763,458 3,092,915 4.5 % N/A (5) Commercial, fair value option 21,136 23,900 5.7 % 8.6 Total loans held-for-sale 2,784,594 3,116,815 Total gross loans 21,285,446 $ 21,734,785 Credit loss allowances: Commercial loans held-for-investment (88,801) Infrastructure loans held-for-investment (10,612) Total allowances (99,413) Total net loans $ 21,186,033 ______________________________________________________________________________________________________________________ (1) Calculated using applicable index rates as of December 31, 2023 and 2022 for variable rate loans and excludes loans for which interest income is not recognized. (2) Represents the WAL of each respective group of loans, excluding loans for which interest income is not recognized, as of the respective balance sheet date. For commercial loans held-for-investment, the WAL is calculated assuming all extension options are exercised by the borrower, although our loans may be repaid prior to such date. For infrastructure loans, the WAL is calculated using the amounts and timing of future principal payments, as projected at origination or acquisition of each loan. (3) First mortgages include first mortgage loans and any contiguous mezzanine loan components because as a whole, the expected credit quality of these loans is more similar to that of a first mortgage loan. The application of this methodology resulted in mezzanine loans with carrying values of $1.0 billion and $1.3 billion being classified as first mortgages as of December 31, 2023 and 2022, respectively. (4) Subordinated mortgages include B-Notes and junior participation in first mortgages where we do not own the senior A-Note or senior participation. If we own both the A-Note and B-Note, we categorize the loan as a first mortgage loan. (5) Residential loans have a weighted average remaining contractual life of 27.8 years and 28.8 years as of December 31, 2023 and 2022, respectively. As of December 31, 2023, our variable rate loans held-for-investment, excluding loans for which interest income is not recognized, were as follows (dollars in thousands): December 31, 2023 Carrying Weighted-average Commercial loans $ 14,583,440 4.0 % Infrastructure loans 2,505,924 4.1 % Total variable rate loans held-for-investment $ 17,089,364 4.0 % Credit Loss Allowances As discussed in Note 2, we do not have a history of realized credit losses on our HFI loans and HTM securities, so we have subscribed to third party database services to provide us with industry losses for both commercial real estate and infrastructure loans. Using these losses as a benchmark, we determine expected credit losses for our loans and securities on a collective basis within our commercial real estate and infrastructure portfolios. For our commercial loans, we utilize a loan loss model that is widely used among banks and commercial mortgage REITs and is marketed by a leading CMBS data analytics provider. It employs logistic regression to forecast expected losses at the loan level based on a commercial real estate loan securitization database that contains activity dating back to 1998. We provide specific loan-level inputs which include loan-to-stabilized-value (“LTV”) and debt service coverage ratio (DSCR) metrics, as well as principal balances, property type, location, coupon, origination year, term, subordination, expected repayment dates and future fundings. We also select from a group of independent five-year macroeconomic forecasts included in the model that are updated regularly based on current economic trends. We categorize the results by LTV range, which we consider the most significant indicator of credit quality for our commercial loans, as set forth in the credit quality indicator table below. A lower LTV ratio typically indicates a lower credit loss risk. The macroeconomic forecasts do not differentiate among property types or asset classes. Instead, these forecasts reference general macroeconomic conditions (i.e. Gross Domestic Product, employment and interest rates) which apply broadly across all assets. For instance, although the office sector has been adversely affected by the increase in remote working arrangements and the retail sector has been adversely affected by electronic commerce, the broad macroeconomic forecasts do not account for such differentiation. Accordingly, we have selected more adverse macroeconomic recovery forecasts related to office properties than for other property types in determining our credit loss allowance. We have also selected a more adverse macroeconomic recovery forecast for those properties which are experiencing more challenges than their general property type or asset class. For our infrastructure loans, we utilize a database of historical infrastructure loan performance that is shared among a consortium of banks and other lenders and compiled by a major bond credit rating agency. The database is representative of industry-wide project finance activity dating back to 1983. We derive historical loss rates from the database filtered by industry, sub-industry, term and construction status for each of our infrastructure loans. Those historical loss rates reflect global economic cycles over a long period of time as well as average recovery rates. We categorize the results principally between the power and oil and gas industries, which we consider the most significant indicator of credit quality for our infrastructure loans, as set forth in the credit quality indicator table below. As discussed in Note 2, we use a discounted cash flow or collateral value approach, rather than the industry loan loss approach described above, to determine credit loss allowances for any credit deteriorated loans. We regularly evaluate the extent and impact of any credit deterioration associated with the performance and/or value of the underlying collateral, as well as the financial and operating capability of the borrower. Specifically, the collateral’s operating results and any cash reserves are analyzed and used to assess (i) whether cash flow from operations is sufficient to cover the debt service requirements currently and into the future, (ii) the ability of the borrower to refinance the loan and/or (iii) the collateral’s liquidation value. We also evaluate the financial wherewithal of any loan guarantors as well as the borrower’s competency in managing and operating the collateral. In addition, we consider the overall economic environment, real estate or industry sector, and geographic sub-market in which the borrower operates. Such analyses are completed and reviewed by asset management and finance personnel who utilize various data sources, including (i) periodic financial data such as property operating statements, occupancy, tenant profile, rental rates, operating expenses, the borrower’s exit plan, and capitalization and discount rates, (ii) site inspections and (iii) current credit spreads and discussions with market participants. The significant credit quality indicators for our loans measured at amortized cost, which excludes loans held-for-sale, were as follows as of December 31, 2023 (dollars in thousands): Term Loans Revolving Loans Total Credit As of December 31, 2023 2023 2022 2021 2020 2019 Prior Commercial loans: Credit quality indicator: LTV < 60% $ 321,465 $ 2,040,870 $ 2,979,413 $ 188,140 $ 937,355 $ 232,009 $ — $ 6,699,252 $ 24,939 LTV 60% - 70% 518,912 1,937,799 3,522,841 97,805 85,287 318,432 — 6,481,076 78,495 LTV > 70% 60,905 102,732 483,506 451,471 433,448 589,037 — 2,121,099 190,416 Credit deteriorated — — — — — 4,925 — 4,925 4,925 Defeased and other 14,374 41,705 — — — 14,933 — 71,012 — Total commercial $ 915,656 $ 4,123,106 $ 6,985,760 $ 737,416 $ 1,456,090 $ 1,159,336 $ — $ 15,377,364 $ 298,775 Infrastructure loans: Credit quality indicator: Power $ 441,646 $ — $ 106,343 $ 72,687 $ 276,795 $ 442,784 $ 3,213 $ 1,343,468 $ 4,099 Oil and gas 410,674 136,704 211,136 — 218,129 135,075 2,068 1,113,786 6,009 Other 48,670 — — — — — — 48,670 156 Total infrastructure $ 900,990 $ 136,704 $ 317,479 $ 72,687 $ 494,924 $ 577,859 $ 5,281 $ 2,505,924 $ 10,264 Loans held-for-sale 2,645,637 — Total gross loans $ 20,528,925 $ 309,039 Non-Credit Deteriorated Loans As of December 31, 2023, we had the following loans with a combined amortized cost basis of $488.9 million that were 90 days or greater past due at December 31, 2023: (i) a $252.0 million senior mortgage loan on an office building in Houston, Texas; (ii) a $122.3 million senior mortgage loan on an office building in Washington, DC; (iii) a $37.8 million leasehold mortgage loan on a luxury resort in California destroyed by wildfire; (iv) $67.6 million of residential loans; and (v) a $9.2 million loan on a hospitality asset in New York City that our Investing and Servicing Segment acquired as nonperforming in October 2021. All of these loans were on nonaccrual as of December 31, 2023 with the exception of (i). We also had the following loans on nonaccrual that were not 90 days or greater past due as of December 31, 2023: (i) a $185.4 million senior loan on a retail and entertainment project in New Jersey, of which $7.3 million was previously converted into equity interests (in 2023, $54.9 million was received from the borrower which reduced the carrying values of both the senior loan and one of the equity interests (see Note 8)); and (ii) a $124.3 million senior mortgage loan on an office building in Arlington, Virginia. These loans were not considered credit deteriorated as we presently expect to recover all amounts due. Credit Deteriorated Loans As of December 31, 2023, we had a $4.9 million commercial subordinated loan secured by a department store in Chicago which was deemed credit deteriorated and was fully reserved in prior years. The loan was on nonaccrual under the cost recovery method as of December 31, 2023. Foreclosure and Equity Control During the year ended December 31, 2023, we foreclosed on or otherwise obtained control over the following loan collateral: In December 2023, we obtained control over the pledged equity interests of a mezzanine borrower entity related to a multifamily property in the Pacific Northwest, which resulted in our consolidating the mezzanine borrower entity including the underlying property collateral. The net carrying value of our loans related to this property totaled $60.8 million and consisted of first mortgage and mezzanine loans which are now eliminated in consolidation. In connection with the consolidation of the mezzanine borrower entity, we recorded properties of $60.8 million in accordance with the asset acquisition provisions of ASC 805. In May 2023, we obtained a deed in lieu of foreclosure on a mortgage loan on the retail portion of a hotel located in Chicago, which resulted in our obtaining physical possession of the underlying collateral. The carrying value of the loan was $41.1 million. In connection therewith, we reclassified the carrying value of the loan (representing our acquisition cost of the underlying land, building and in-place leases) to properties ($36.8 million) and lease intangible assets ($4.3 million) in accordance with the asset acquisition provisions of ASC 805. Loan Modifications We may amend or modify a loan based on its specific facts and circumstances. During the year ended December 31, 2023, we made modifications to three loans which are disclosable under ASU 2022-02, Troubled Debt Restructurings and Vintage Disclosures , as they involved an other-than-insignificant payment delay or an interest rate reduction for a borrower experiencing financial difficulty. For a $197.2 million first mortgage loan on an office park in California, we granted a 19-month term extension and provided a $25.1 million preferred equity commitment (of which $15.5 million was unfunded as of December 31, 2023), principally to fund property improvements and lease-up costs prior to the loan’s extended maturity. The other two modifications were as follows: (i) for a $95.5 million first mortgage loan on an office campus in Pennsylvania, the interest rate was reduced to a fixed rate of 6.00% (the reduction was partially recaptured in a new exit fee), with the borrower contributing $2.5 million; and (ii) for a $44.9 million first mortgage loan on a multifamily property in Arizona, the interest rate was reduced by 50 bps to SOFR plus 2.85%, with the borrower contributing $1.6 million. Each of the three loans has paid all contractual interest due as of December 31, 2023, and their modified terms were included in the determination of our general CECL reserve. The following tables present the activity in our credit loss allowance for funded loans and unfunded commitments (amounts in thousands): Funded Commitments Credit Loss Allowance Loans Held-for-Investment Total Funded Loans Commercial Infrastructure Credit loss allowance at December 31, 2020 $ 69,611 $ 7,833 $ 77,444 Credit loss (reversal) provision, net (7,947) 12,580 4,633 Charge-offs (14,807) (1) — (14,807) Transfers (257) 257 — Credit loss allowance at December 31, 2021 46,600 20,670 67,270 Credit loss provision, net 42,201 6,848 49,049 Charge-offs — (16,906) (2) (16,906) Credit loss allowance at December 31, 2022 88,801 10,612 99,413 Credit loss provision, net 222,266 10,446 232,712 Charge-offs (3) (12,292) (10,794) (23,086) Credit loss allowance at December 31, 2023 $ 298,775 $ 10,264 $ 309,039 ______________________________________________________________________________________________________________________ (1) Relates to a $7.8 million unsecured promissory note deemed uncollectible in connection with a residential conversion project located in New York City and a $7.0 million subordinated mortgage note deemed uncollectible in connection with a vacant department store in the Chicago area. Both notes were previously considered credit deteriorated and were fully reserved at or prior to write-off. (2) Relates to a senior loan participation converted to an equity interest. (3) Represents the net charge-off of (i) a $12.3 million credit loss allowance related to the portion of a credit deteriorated commercial mortgage loan on an office and retail complex in Arizona deemed uncollectible and (ii) a $10.8 million credit loss allowance related to the portion of a credit deteriorated infrastructure loan participation collateralized by a first priority lien on two natural gas fired power plants near Chicago, which was deemed uncollectible due to a third party’s then nearly completed acquisition of the power plants. Such loans were originated in 2015 and 2017, respectively, with the infrastructure loan acquired as part of the Infrastructure Lending Segment acquisition in 2018. Unfunded Commitments Credit Loss Allowance (1) Loans Held-for-Investment HTM Preferred Commercial Infrastructure Interests (2) CMBS (2) Total Credit loss allowance at December 31, 2020 $ 5,258 $ 812 $ — $ — $ 6,070 Credit loss provision (reversal), net 1,434 (667) — — 767 Credit loss allowance at December 31, 2021 6,692 145 — — 6,837 Credit loss provision (reversal), net 3,057 (73) — 52 3,036 Credit loss allowance at December 31, 2022 9,749 72 — 52 9,873 Credit loss (reversal) provision, net (1,007) 492 1,548 22 1,055 Credit loss allowance at December 31, 2023 $ 8,742 $ 564 $ 1,548 $ 74 $ 10,928 Memo: Unfunded commitments as of December 31, 2023 (3) $ 1,237,874 $ 65,546 $ 8,282 $ 34,743 $ 1,346,445 ______________________________________________________________________________________________________________________ (1) Included in accounts payable, accrued expenses and other liabilities in our consolidated balance sheets. (2) See Note 6 for further details. (3) Represents amounts expected to be funded (see Note 23). Loan Portfolio Activity The activity in our loan portfolio was as follows (amounts in thousands): Held-for-Investment Loans Year Ended December 31, 2023 Commercial Infrastructure Residential Held-for-Sale Loans Total Loans Balance at December 31, 2022 $ 16,048,507 $ 2,352,932 $ — $ 2,784,594 $ 21,186,033 Acquisitions/originations/additional funding 1,713,979 1,002,908 — 757,355 3,474,242 Capitalized interest (1) 125,057 518 — 172 125,747 Basis of loans sold (2) (53,000) — — (813,104) (866,104) Loan maturities/principal repayments (2,596,738) (864,549) — (185,884) (3,647,171) Discount accretion/premium amortization 53,418 13,694 — — 67,112 Changes in fair value — — — 62,702 62,702 Foreign currency translation gain, net 152,869 603 — — 153,472 Credit loss provision, net (222,266) (10,446) — — (232,712) Loan foreclosure and equity control (101,845) — — (929) (102,774) (3) Transfer to/from other asset/liability classifications or between segments (41,392) — — 40,731 (661) Balance at December 31, 2023 $ 15,078,589 $ 2,495,660 $ — $ 2,645,637 $ 20,219,886 Held-for-Investment Loans Year Ended December 31, 2022 Commercial Infrastructure Residential Held-for-Sale Loans Total Loans Balance at December 31, 2021 $ 13,450,198 $ 2,027,426 $ 59,225 $ 2,876,800 $ 18,413,649 Acquisitions/originations/additional funding 4,882,414 661,598 — 4,634,722 10,178,734 Capitalized interest (1) 121,500 503 1,639 508 124,150 Basis of loans sold (2) (10,109) (26,824) — (4,216,618) (4,253,551) Loan maturities/principal repayments (1,764,638) (293,264) (7,623) (193,105) (2,258,630) Discount accretion/premium amortization 52,939 9,618 — — 62,557 Changes in fair value — — (3,169) (343,053) (346,222) Foreign currency translation loss, net (304,051) (2,895) — — (306,946) Credit loss provision, net (42,201) (6,848) — — (49,049) Loan foreclosure, equity control and conversion to equity interest (273,929) (16,382) — — (290,311) (4) Transfer to/from other asset classifications or between segments (63,616) — (50,072) 25,340 (88,348) (5) Balance at December 31, 2022 $ 16,048,507 $ 2,352,932 $ — $ 2,784,594 $ 21,186,033 Held-for-Investment Loans Year Ended December 31, 2021 Commercial Infrastructure Residential Held-for-Sale Loans Total Loans Balance at December 31, 2020 $ 9,583,949 $ 1,412,440 $ 90,684 $ 1,052,835 $ 12,139,908 Acquisitions/originations/additional funding 7,822,441 817,104 — 5,351,034 13,990,579 Capitalized interest (1) 112,178 — 4,308 2,650 119,136 Basis of loans sold (2) (307,454) (12,678) — (3,856,736) (4,176,868) Loan maturities/principal repayments (3,508,969) (304,878) (31,251) (352,711) (4,197,809) Discount accretion/premium amortization 52,416 5,028 — 504 57,948 Changes in fair value — — 1,186 67,864 69,050 Foreign currency translation loss, net (71,419) (711) — — (72,130) Credit loss (provision) reversal, net 7,947 (12,580) — — (4,633) Loan foreclosure and conversion to equity interest (36,308) — — — (36,308) (6) Transfer to/from other asset classifications (204,583) 123,701 (5,702) 611,360 524,776 (7) Balance at December 31, 2021 $ 13,450,198 $ 2,027,426 $ 59,225 $ 2,876,800 $ 18,413,649 ______________________________________________________________________________________________________________________ (1) Represents accrued interest income on loans whose terms do not require current payment of interest. (2) See Note 13 for additional disclosure on these transactions. (3) Represents (i) the $41.1 million carrying value of a mortgage loan on the retail portion of a hotel located in Chicago foreclosed in May 2023, (ii) the $60.8 million carrying value of a first mortgage and mezzanine loan on a multifamily property in the Pacific Northwest consolidated upon obtaining equity control in December 2023 and (iii) $0.9 million in residential mortgage loans foreclosed. (4) Represents (i) the $50.2 million net carrying value of first mortgage and contiguous mezzanine loans related to an office building in Texas that is eliminated as a result of consolidating the net assets of the mezzanine borrower entity upon obtaining control over its pledged equity interests in May 2022, (ii) the $223.8 million principal amount of a senior loan secured by an office building in California foreclosed in December 2022 and (iii) the $16.4 million net carrying value of a senior loan participation in a natural gas-fired power plant in Massachusetts that was converted to an equity interest in December 2022. (5) During the year ended December 2022, we repurchased at par $745.0 million of agency-eligible residential loans that were previously sold. The repurchase was subject to a contingency for which we recorded a contingency loss of $88.4 million within other loss, net in the consolidated statement of operations. At the time the loans were repurchased, this loss was utilized to reduce the carrying value of the loans to their estimated fair value. (6) Includes (i) a $29.0 million credit deteriorated loan related to a residential conversion project which was foreclosed in April 2021 and (ii) $7.3 million of a commercial loan that was converted to equity interests in March 2021 (see Note 9) pursuant to a consensual transfer under pre-existing equity pledges of additional collateral. (7) |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | Investment Securities Investment securities were comprised of the following as of December 31, 2023 and 2022 (amounts in thousands): Carrying Value as of December 31, 2023 December 31, 2022 RMBS, available-for-sale $ 102,368 $ 113,386 RMBS, fair value option (1) 449,909 423,183 CMBS, fair value option (1), (2) 1,147,550 1,262,846 HTM debt securities, amortized cost net of credit loss allowance of $13,143 and $3,182 606,254 673,470 Equity security, fair value 8,340 9,840 Subtotal — Investment securities 2,314,421 2,482,725 VIE eliminations (1) (1,578,859) (1,666,921) Total investment securities $ 735,562 $ 815,804 ______________________________________________________________________________________________________________________ (1) Certain fair value option CMBS and RMBS are eliminated in consolidation against VIE liabilities pursuant to ASC 810. (2) Includes $177.3 million and $198.9 million of non-controlling interests in the consolidated entities which hold certain of these CMBS as of December 31, 2023 and 2022, respectively. Purchases, sales, principal collections and redemptions for all investment securities were as follows (amounts in thousands): RMBS, RMBS, fair CMBS, fair HTM Equity Security Securitization Total Year Ended December 31, 2023 Purchases/fundings $ — $ — $ 48,011 $ 11,578 $ — $ (48,011) $ 11,578 Sales and redemptions 549 — — — 2,493 — 3,042 Principal collections 9,475 53,332 117,100 80,083 — (169,642) 90,348 Year Ended December 31, 2022 Purchases/fundings $ — $ 226,152 $ 63,681 $ 86,512 $ — $ (289,833) $ 86,512 Sales and redemptions — — — — — — — Principal collections 19,087 74,542 20,862 94,868 — (93,412) 115,947 Year Ended December 31, 2021 Purchases/fundings $ — $ 168,825 $ 71,476 $ 198,358 $ — $ (240,301) $ 198,358 Sales and redemptions — 81,871 38,714 — — (120,585) — Principal collections 30,722 63,144 7,732 54,725 — (68,873) 87,450 ______________________________________________________________________________________________________________________ (1) Represents RMBS and CMBS, fair value option amounts eliminated due to our consolidation of securitization VIEs. These amounts are reflected as issuance or repayment of debt of, or distributions from, consolidated VIEs in our consolidated statements of cash flows. RMBS, Available-for-Sale The Company classified all of its RMBS not eliminated in consolidation as available-for-sale as of December 31, 2023 and 2022. These RMBS are reported at fair value in the balance sheet with changes in fair value recorded in accumulated other comprehensive income (“AOCI”). The tables below summarize various attributes of our investments in available-for-sale RMBS as of December 31, 2023 and 2022 (amounts in thousands): Unrealized Gains or (Losses) Amortized Credit Net Gross Gross Net Fair Value December 31, 2023 RMBS $ 87,016 $ — $ 87,016 $ 18,092 $ (2,740) $ 15,352 $ 102,368 December 31, 2022 RMBS $ 92,431 $ — $ 92,431 $ 21,765 $ (810) $ 20,955 $ 113,386 Weighted Average Coupon (1) WAL December 31, 2023 RMBS 5.8 % 7.1 ______________________________________________________________________________________________________________________ (1) Calculated using the December 31, 2023 SOFR rate of 5.355% for floating rate securities. (2) Represents the remaining WAL of each respective group of securities as of the balance sheet date. The WAL of each individual security is calculated using projected amounts and projected timing of future principal payments. As of December 31, 2023, approximately $91.3 million, or 89%, of RMBS were variable rate. We purchased all of the RMBS at a discount, a portion of which is accreted into income over the expected remaining life of the security. The majority of the income from this strategy is earned from the accretion of this accretable discount. We have engaged a third party manager who specializes in RMBS to execute the trading of RMBS, the cost of which was $0.5 million, $0.6 million and $0.9 million for the years ended December 31, 2023, 2022 and 2021, respectively, recorded as management fees in the accompanying consolidated statements of operations. The following table presents the gross unrealized losses and estimated fair value of any available-for-sale securities that were in an unrealized loss position as of December 31, 2023 and 2022, and for which an allowance for credit losses has not been recorded (amounts in thousands): Estimated Fair Value Unrealized Losses Securities with a Securities with a Securities with a Securities with a As of December 31, 2023 RMBS $ 10,687 $ 6,361 $ (1,322) $ (1,418) As of December 31, 2022 RMBS $ 6,961 $ 1,889 $ (502) $ (308) As of December 31, 2023 and 2022, there were 14 and 10 securities, respectively, with unrealized losses reflected in the table above. After evaluating the securities, we concluded that the unrealized losses reflected above were noncredit-related and would be recovered from the securities’ estimated future cash flows. We considered a number of factors in reaching this conclusion, including that we did not intend to sell the securities, it was not considered more likely than not that we would be forced to sell the securities prior to recovering our amortized cost, and there were no material credit events that would have caused us to otherwise conclude that we would not recover our cost. Credit losses, if any, are calculated by comparing (i) the estimated future cash flows of each security discounted at the yield determined as of the initial acquisition date or, if since revised, as of the last date previously revised, to (ii) our net amortized cost basis. Significant judgment is used in projecting cash flows for our non-agency RMBS. As a result, actual income and/or credit losses could be materially different from what is currently projected and/or reported. CMBS and RMBS, Fair Value Option As discussed in the “Fair Value Option” section of Note 2 herein, we elect the fair value option for certain CMBS and RMBS in an effort to eliminate accounting mismatches resulting from the current or potential consolidation of securitization VIEs. As of December 31, 2023, the fair value and unpaid principal balance of CMBS where we have elected the fair value option, excluding the notional value of interest-only securities and before consolidation of securitization VIEs, were $1.1 billion and $2.7 billion, respectively. As of December 31, 2023, the fair value and unpaid principal balance of RMBS where we have elected the fair value option, excluding the notional value of interest-only securities and before consolidation of securitization VIEs, were $449.9 million and $326.3 million, respectively. The $1.6 billion total fair value balance of CMBS and RMBS represents our economic interests in these assets. However, as a result of our consolidation of securitization VIEs, the vast majority of this fair value (all except $18.6 million at December 31, 2023) is eliminated against VIE liabilities before arriving at our GAAP balance for fair value option investment securities. As of December 31, 2023, none of our CMBS or RMBS were variable rate. HTM Debt Securities, Amortized Cost The table below summarizes our investments in HTM debt securities as of December 31, 2023 and 2022 (amounts in thousands): Amortized Credit Loss Net Carrying Gross Unrealized Gross Unrealized Fair Value December 31, 2023 CMBS $ 580,704 $ (164) $ 580,540 $ 43 $ (24,835) $ 555,748 Preferred interests 9,570 (2,898) 6,672 — (318) 6,354 Infrastructure bonds 29,123 (10,081) 19,042 32 (16) 19,058 Total $ 619,397 $ (13,143) $ 606,254 $ 75 $ (25,169) $ 581,160 December 31, 2022 CMBS $ 577,681 $ (172) $ 577,509 $ 30 $ (30,424) $ 547,115 Preferred interests 29,757 — 29,757 125 (4,863) 25,019 Infrastructure bonds 69,214 (3,010) 66,204 47 (1,110) 65,141 Total $ 676,652 $ (3,182) $ 673,470 $ 202 $ (36,397) $ 637,275 The following table presents the activity in our credit loss allowance for HTM debt securities (amounts in thousands): CMBS Preferred Infrastructure Total HTM Credit loss allowance at December 31, 2020 $ — $ 2,749 $ 2,926 $ 5,675 Credit loss provision (reversal), net 3,140 (187) (18) 2,935 Credit loss allowance at December 31, 2021 3,140 2,562 2,908 8,610 Credit loss (reversal) provision, net (2,968) (2,562) 102 (5,428) Credit loss allowance at December 31, 2022 172 — 3,010 3,182 Credit loss (reversal) provision, net (8) 2,898 7,071 9,961 Credit loss allowance at December 31, 2023 $ 164 $ 2,898 $ 10,081 $ 13,143 During the year ended December 31, 2023, we provided an additional $7.2 million specific credit loss allowance, bringing the total to $10.0 million, on a $19.2 million infrastructure bond that is collateralized by a first priority lien on a coal-fired power plant in Mississippi. It was deemed credit deteriorated when we acquired the Infrastructure Lending Segment in 2018. It has been placed on nonaccrual under the cost recovery method due to a forbearance and restructuring plan agreed between the lenders and borrower that was necessitated by operating shortfalls at the plant. The table below summarizes the maturities of our HTM debt securities by type as of December 31, 2023 (amounts in thousands): CMBS Preferred Infrastructure Total Less than one year $ 96,548 $ — $ — $ 96,548 One to three years 437,173 6,672 330 444,175 Three to five years 46,819 — 9,598 56,417 Thereafter — — 9,114 9,114 Total $ 580,540 $ 6,672 $ 19,042 $ 606,254 Equity Security, Fair Value During 2012, we acquired 9,140,000 ordinary shares from a related-party in Starwood European Real Estate Finance Limited (“SEREF”), a debt fund that is externally managed by an affiliate of our Manager and is listed on the London Stock Exchange. During the year ended December 31, 2023, 1,892,313 shares were redeemed by SEREF, for proceeds of $2.5 million, leaving 7,247,687 held as of December 31, 2023. Prior to that, there were no share redemptions by SEREF. The fair value of the investment remeasured in USD was $8.3 million and $9.8 million as of December 31, 2023 and 2022, respectively. As of December 31, 2023, our shares represent an approximate 2.3% interest in SEREF. |
Properties
Properties | 12 Months Ended |
Dec. 31, 2023 | |
Real Estate [Abstract] | |
Properties | Properties Our properties are held within the following portfolios: Medical Office Portfolio The Medical Office Portfolio is comprised of 34 medical office buildings acquired during the year ended December 31, 2016. These properties, which collectively comprise 1.9 million square feet, are geographically dispersed throughout the U.S. and primarily affiliated with major hospitals or located on or adjacent to major hospital campuses. The Medical Office Portfolio includes total gross properties and lease intangibles of $778.2 million and debt of $598.4 million as of December 31, 2023. Master Lease Portfolio The Master Lease Portfolio is comprised of 16 retail properties geographically dispersed throughout the U.S., with more than 50% of the portfolio, by carrying value, located in Florida, Texas and Minnesota. These properties, which we acquired in September 2017, collectively comprise 1.9 million square feet and were leased back to the seller under corporate guaranteed master net lease agreements with initial terms of 24.6 years and periodic rent escalations. The Master Lease Portfolio includes total gross properties of $343.8 million ($290.9 million, net of depreciation) and debt of $193.7 million as of December 31, 2023. As of December 31, 2023, we reclassified the $290.9 million net carrying value of the Master Lease Portfolio properties previously held-for-investment to properties held-for-sale as we had entered into a purchase and sale contract with an unaffiliated third party during the fourth quarter of 2023. The contractual sale price exceeds our undepreciated cost basis and includes the purchaser’s assumption of the related mortgage debt. Accordingly, we also reclassified the $193.7 million net carrying value of the Master Lease Portfolio debt to debt related to properties held-for-sale within the liabilities section of our consolidated balance sheet. Pretax income attributable to the Master Lease Portfolio was $11.7 million, $9.7 million and $9.0 million during the years ended December 31, 2023, 2022 and 2021, respectively. Investing and Servicing Segment Property Portfolio The REIS Equity Portfolio is comprised of 6 commercial real estate properties which were acquired from CMBS trusts over time. The REIS Equity Portfolio includes total gross properties and lease intangibles of $109.5 million and debt of $68.8 million as of December 31, 2023. Commercial and Residential Lending Segment Property Portfolio The Commercial and Residential Lending Segment Portfolio represents properties acquired through loan foreclosure or exercise of control over a mezzanine loan borrower’s pledged equity interests. This portfolio includes total gross properties and lease intangibles of $456.5 million and debt of $234.9 million as of December 31, 2023. Woodstar Portfolios Refer to Note 8 for a discussion of our Woodstar I and Woodstar II Portfolios which are not included in the table below. The table below summarizes our properties held-for-investment as of December 31, 2023 and December 31, 2022 (dollars in thousands): Depreciable Life December 31, 2023 December 31, 2022 Property Segment Land and land improvements 0 - 15 years $ 68,923 $ 176,029 Buildings and building improvements 0 - 45 years 629,511 856,411 Furniture & fixtures 3 - 5 years 608 446 Investing and Servicing Segment Land and land improvements 0 - 15 years 20,229 34,613 Buildings and building improvements 3 - 40 years 65,433 122,384 Furniture & fixtures 2 - 5 years 2,899 3,207 Commercial and Residential Lending Segment Land and land improvements N/A 79,361 99,043 Buildings and building improvements 0 - 50 years 139,538 79,661 Construction in progress N/A 218,205 287,701 Furniture & fixtures 5 years 2,003 — Properties, cost 1,226,710 1,659,495 Less: accumulated depreciation (180,326) (209,509) Properties, net $ 1,046,384 $ 1,449,986 During the year ended December 31, 2023, we recognized $124.9 million of property impairment losses within other loss, net in our consolidated statement of operations. Of those impairment losses, $94.8 million related to a vacant building in California which had been acquired by our Commercial and Residential Lending Segment through a loan foreclosure in December 2022. Management continues to evaluate a variety of potential sale opportunities related to the property, including negotiations with several buyers throughout the year, with one as recently as the fourth quarter, which would have resulted in recovery of our then GAAP basis. Because those negotiations ultimately proved unsuccessful, we commissioned a third party appraisal. The fair value of the property was estimated based on this appraisal. The other $30.1 million impairment loss related to an office building in Texas which had been acquired by our Commercial and Residential Lending Segment through a loan foreclosure in May 2022. During the third quarter, a letter of intent which would have resulted in recovery of our then GAAP basis was terminated by the buyer. As a result, we commissioned a third party appraisal. Shortly thereafter, we entered into a letter of intent with another unrelated third party to sell the property at a price below our basis. Although a transaction failed to materialize, we utilized the value implied by the letter of intent to determine the amount of impairment, despite the appraisal indicating full recovery of our GAAP basis. During the year ended December 31, 2023, we sold four operating properties, including a controlling financial interest in a subsidiary within the REIS Equity Portfolio, for $63.7 million. We recognized a total gain of $25.6 million within gain on sale of investments and other assets in our consolidated statement of operations, of which $10.2 million related to the deconsolidation of the subsidiary. During the year ended December 31, 2022, we sold three operating properties within the REIS Equity Portfolio for $92.1 million and recognized a total gain of $50.9 million within gain on sale of investments and other assets in our consolidated statement of operations, of which $0.6 million was attributable to non-controlling interests. During the year ended December 31, 2021, we sold two operating properties within the REIS Equity Portfolio for $68.7 million and recognized a total gain of $22.2 million within gain on sale of investments and other assets in our consolidated statement of operations. During the year ended December 31, 2023, we sold four units in a residential conversion project in New York for $12.1 million within the Commercial and Residential Lending Segment. In connection with these sales, there was no gain or loss recognized in our consolidated statement of operations. During the year ended December 31, 2022, we sold an operating property within the Commercial and Residential Lending Segment for $114.8 million and recognized a gain of $86.6 million within gain on sale of investments and other assets in our consolidated statement of operations. During the year ended December 31, 2021, we sold an operating property within the Commercial and Residential Lending Segment for $31.2 million and recognized a gain of $17.7 million within gain on sale of investments and other assets in our consolidated statement of operations. Future rental payments due to us from tenants under existing non-cancellable operating leases for each of the next five years and thereafter, excluding rental payments due on properties held-for-sale, are as follows (in thousands): 2024 $ 62,333 2025 56,655 2026 47,778 2027 42,123 2028 38,104 Thereafter 127,957 Total $ 374,950 |
Investments of Consolidated Aff
Investments of Consolidated Affordable Housing Fund | 12 Months Ended |
Dec. 31, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments of Consolidated Affordable Housing Fund | Investments of Consolidated Affordable Housing Fund As discussed in Note 2, we established the Woodstar Fund effective November 5, 2021, an investment fund which holds our Woodstar multifamily affordable housing portfolios. The Woodstar Portfolios consist of the following: Woodstar I Portfolio The Woodstar I Portfolio is comprised of 32 affordable housing communities with 8,948 units concentrated primarily in the Tampa, Orlando and West Palm Beach metropolitan areas. During the year ended December 31, 2015, we acquired 18 of the 32 affordable housing communities of the Woodstar I Portfolio, with the final 14 communities acquired during the year ended December 31, 2016. The Woodstar I Portfolio includes properties at fair value of $1.8 billion and debt at fair value of $731.2 million as of December 31, 2023. Woodstar II Portfolio The Woodstar II Portfolio is comprised of 27 affordable housing communities with 6,109 units concentrated primarily in Central and South Florida. We acquired eight of the 27 affordable housing communities in December 2017, with the final 19 communities acquired during the year ended December 31, 2018. The Woodstar II Portfolio includes properties at fair value of $1.4 billion and debt at fair value of $479.9 million as of December 31, 2023. Income from the Woodstar Fund’s investments reflects the following components for the years ended December 31, 2023 and 2022, and for the period from November 5, 2021 through December 31, 2021 (in thousands): Year Ended December 31, 2023 Year Ended December 31, 2022 November 5, 2021 - December 31, 2021 Distributions from affordable housing fund investments $ 39,413 $ 35,043 $ 6,023 Unrealized change in fair value of investments (1) 251,831 720,693 402 Income from affordable housing fund investments $ 291,244 $ 755,736 $ 6,425 ______________________________________________________________________________________________________________________ (1) The fair value of the Woodstar Fund’s investments are dependent upon the real estate and capital markets, which are cyclical in nature. Property and investment values are affected by, among other things, capitalization rates, the availability of capital, occupancy, rental rates and interest and inflation rates. |
Investment in Unconsolidated En
Investment in Unconsolidated Entities | 12 Months Ended |
Dec. 31, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investment in Unconsolidated Entities | Investments in Unconsolidated Entities The table below summarizes our investments in unconsolidated entities as of December 31, 2023 and 2022 (dollars in thousands): Participation / Carrying value as of December 31, 2023 December 31, 2022 Equity method investments: Equity interests in two natural gas power plants 10% - 12% $ 52,230 $ 46,618 Investor entity which owns equity in an online real estate company 50% 5,575 5,457 Equity interest in a residential mortgage originator (2) N/A — 1,449 Various 20% - 50% 16,854 15,377 74,659 68,901 Other equity investments: Equity interest in a servicing and advisory business 2% 12,955 12,955 Investment funds which own equity in a loan servicer and other real estate assets 4% - 6% 842 940 Investor entities which own equity interests in two entertainment and retail centers (3) 15% 146 7,322 Various 1% - 3% 1,774 1,774 15,717 22,991 $ 90,376 $ 91,892 ______________________________________________________________________________________________________________________ (1) None of these investments are publicly traded and therefore quoted market prices are not available. (2) In January 2023, we sold our ownership interest to an unaffiliated third party. During the year ended December 31, 2022, we reduced the carrying value of our investment to the estimated net proceeds to be received. (3) In March 2021, we obtained equity interests in two investor entities that own interests in two entertainment and retail centers in satisfaction of $7.3 million principal amount of a commercial loan. The interests were obtained in order to facilitate repayment of a portion of that loan for which these interests represented underlying collateral. The interests are entitled to preferred treatment in the distribution waterfall and are intended to repay us the $7.3 million principal amount of the loan plus interest. During the year ended December 31, 2023, we received distributions totaling $54.9 million, which reduced the carrying values of both the loan (including previously accrued interest) and one of the equity interests by $47.7 million and $7.2 million, respectively. This distribution reduced our basis in one of the investor entities to a balance of zero, while the second investor entity basis was unchanged. See further discussion in Note 5. There were no differences between the carrying value of our equity method investments and the underlying equity in the net assets of the investees as of December 31, 2023. During the year ended December 31, 2023, we did not become aware of (i) any observable price changes in our other equity investments accounted for under the fair value practicability election or (ii) any indicators of impairment. |
Goodwill and Intangibles
Goodwill and Intangibles | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangibles | Goodwill and Intangibles Goodwill Infrastructure Lending Segment The Infrastructure Lending Segment’s goodwill of $119.4 million at both December 31, 2023 and 2022 represents the excess of consideration transferred over the fair value of net assets acquired on September 19, 2018 and October 15, 2018. The goodwill recognized is attributable to value embedded in the acquired Infrastructure Lending Segment’s lending platform and is fully tax deductible over 15 years. As discussed in Note 2, goodwill is tested for impairment at least annually. Based on our quantitative assessment during the fourth quarter of 2023, we determined that the fair value of the Infrastructure Lending Segment reporting unit to which goodwill is attributed exceeded its carrying value including goodwill. Therefore, we concluded that the goodwill attributed to the Infrastructure Lending Segment was not impaired. LNR Property LLC (“LNR”) The Investing and Servicing Segment’s goodwill of $140.4 million at both December 31, 2023 and 2022 represents the excess of consideration transferred over the fair value of net assets of LNR acquired on April 19, 2013. The goodwill recognized is attributable to value embedded in LNR’s existing platform, which includes a network of commercial real estate asset managers, work-out specialists, underwriters and administrative support professionals as well as proprietary historical performance data on commercial real estate assets. The tax deductible component of this goodwill as of April 19, 2013 was $149.9 million and is deductible over 15 years. Based on our qualitative assessment during the fourth quarter of 2023, we determined that it is not more likely than not that the fair value of the Investing and Servicing Segment reporting unit to which goodwill is attributed is less than its carrying value including goodwill. Therefore, we concluded that the goodwill attributed to the Investing and Servicing Segment was not impaired. Intangible Assets Servicing Rights Intangibles In connection with the LNR acquisition, we identified domestic servicing rights that existed at the purchase date, based upon the expected future cash flows of the associated servicing contracts. As of December 31, 2023 and 2022, the balance of the domestic servicing intangible was net of $37.9 million and $39.1 million, respectively, which was eliminated in consolidation pursuant to ASC 810 against VIE assets in connection with our consolidation of securitization VIEs. Before VIE consolidation, as of December 31, 2023 and 2022, the domestic servicing intangible had a balance of $57.2 million and $56.8 million, respectively, which represents our economic interest in this asset. Lease Intangibles In connection with our acquisitions of commercial real estate, we recognized in-place lease intangible assets and favorable lease intangible assets associated with certain non-cancelable operating leases of the acquired properties. The following table summarizes our intangible assets, which are comprised of servicing rights intangibles and lease intangibles, as of December 31, 2023 and 2022 (amounts in thousands): As of December 31, 2023 As of December 31, 2022 Gross Carrying Accumulated Net Carrying Gross Carrying Accumulated Net Carrying Domestic servicing rights, at fair value $ 19,384 $ — $ 19,384 $ 17,790 $ — $ 17,790 In-place lease intangible assets 96,158 (67,420) 28,738 98,622 (64,246) 34,376 Favorable lease intangible assets 27,928 (11,083) 16,845 26,649 (10,042) 16,607 Total net intangible assets $ 143,470 $ (78,503) $ 64,967 $ 143,061 $ (74,288) $ 68,773 The following table summarizes the activity within intangible assets for the years ended December 31, 2023 and 2022 (amounts in thousands): Domestic In-place Lease Favorable Lease Total Balance as of January 1, 2022 $ 16,780 $ 31,991 $ 14,793 $ 63,564 Acquisition (1) — 10,083 3,520 13,603 Amortization — (7,132) (1,664) (8,796) Impairment (2) — (43) (4) (47) Sales — (523) (38) (561) Changes in fair value due to changes in inputs and assumptions 1,010 — — 1,010 Balance as of December 31, 2022 $ 17,790 $ 34,376 $ 16,607 $ 68,773 Acquisition (3) — 2,061 2,280 4,341 Amortization — (6,789) (1,945) (8,734) Sales — (910) (97) (1,007) Changes in fair value due to changes in inputs and assumptions 1,594 — — 1,594 Balance as of December 31, 2023 $ 19,384 $ 28,738 $ 16,845 $ 64,967 _________________________________________________ (1) Represents lease intangibles related to an office building in Texas that were consolidated upon exercising control over a mezzanine loan borrower ’ s pledged equity interests in May 2022. (2) Impairment of intangible lease assets is recognized within other expense in our consolidated statement of operations. (3) Represents lease intangibles related to a deed in lieu of foreclosure on a mortgage loan on the retail portion of a hotel located in Chicago in May 2023 (see Note 5). The following table sets forth the estimated aggregate amortization of our in-place lease intangible assets and favorable lease intangible assets for the next five years and thereafter (amounts in thousands): 2024 $ 7,195 2025 6,099 2026 4,573 2027 4,089 2028 3,943 Thereafter 19,684 Total $ 45,583 |
Secured Borrowings
Secured Borrowings | 12 Months Ended |
Dec. 31, 2023 | |
Secured Debt [Abstract] | |
Secured Borrowings | Secured Borrowings Secured Financing Agreements The following table is a summary of our secured financing agreements in place as of December 31, 2023 and 2022 (dollars in thousands): Outstanding Balance at Current Extended Maturity (a) Weighted Average Pledged Asset Maximum December 31, 2023 December 31, 2022 Repurchase Agreements: Commercial Loans Jun 2024 to Dec 2028 (b) Oct 2025 to Dec 2030 (b) Index + 2.07% (c) $ 10,267,245 $ 12,109,808 (d) $ 7,170,389 $ 7,746,867 Residential Loans Aug 2024 to Oct 2025 Aug 2024 to Apr 2026 SOFR + 1.90% 2,602,728 3,450,000 2,287,655 1,912,774 Infrastructure Loans Sep 2024 Sep 2026 SOFR + 2.07% 541,979 650,000 453,217 290,431 Conduit Loans Dec 2024 to Jun 2026 Dec 2025 to Jun 2027 SOFR + 2.30% 31,690 375,000 26,930 8,423 CMBS/RMBS Sep 2024 to Apr 2032 (e) Dec 2024 to Oct 2032 (e) (f) 1,424,610 995,907 714,168 (g) 840,625 Total Repurchase Agreements 14,868,252 17,580,715 10,652,359 10,799,120 Other Secured Financing: Borrowing Base Facility Nov 2024 Oct 2026 SOFR + 2.11% 479,925 750,000 (h) 27,639 — Commercial Financing Facilities Jul 2024 to Aug 2028 Jul 2025 to Dec 2030 Index + 2.20% 557,888 572,552 (i) 387,822 311,825 Residential Financing Facility N/A N/A N/A — — — 244,418 Infrastructure Financing Facilities Jun 2025 to Oct 2025 Jun 2027 to Jul 2032 Index + 2.14% 877,591 1,550,000 631,187 765,265 Property Mortgages - Fixed rate Oct 2025 to Jun 2026 N/A 4.52% 32,772 29,898 29,898 261,100 Property Mortgages - Variable rate Jun 2024 to Mar 2026 N/A (j) 895,159 855,080 853,145 847,633 Term Loans and Revolver (k) N/A (k) N/A (k) 1,516,778 1,366,778 1,380,766 Total Other Secured Financing 2,843,335 5,274,308 3,296,469 3,811,007 $ 17,711,587 $ 22,855,023 13,948,828 14,610,127 Unamortized net discount (24,975) (30,320) Unamortized deferred financing costs (55,857) (78,275) $ 13,867,996 $ 14,501,532 ______________________________________________________________________________________________________________________ (a) Subject to certain conditions as defined in the respective facility agreement. (b) For certain facilities, borrowings collateralized by loans existing at maturity may remain outstanding until such loan collateral matures, subject to certain specified conditions. (c) Certain facilities with an outstanding balance of $2.8 billion as of December 31, 2023 are indexed to EURIBOR, BBSY, SARON and SONIA. The remainder are indexed to SOFR. (d) Certain facilities with an aggregate initial maximum facility size of $11.7 billion may be increased to $12.1 billion, subject to certain conditions. The $12.1 billion amount includes such upsizes. (e) Certain facilities with an outstanding balance of $332.6 million as of December 31, 2023 carry a rolling 11-month or 12-month term which may reset monthly or quarterly with the lender's consent. These facilities carry no maximum facility size. (f) A facility with an outstanding balance of $281.3 million as of December 31, 2023 has a weighted average fixed annual interest rate of 3.54%. All other facilities are variable rate with a weighted average rate of SOFR + 2.22%. (g) Includes: (i) $281.3 million outstanding on a repurchase facility that is not subject to margin calls; and (ii) $33.0 million outstanding on one of our repurchase facilities that represents the 49% pro rata share owed by a non-controlling partner in a consolidated joint venture (see Note 16). (h) The maximum facility size as of December 31, 2023 of $450.0 million may be increased to $750.0 million, subject to certain conditions. (i) Certain facilities with an aggregate initial maximum facility size of $472.6 million may be increased to $572.6 million, subject to certain conditions. The $572.6 million amount includes such upsizes. (j) Includes a $600.0 million first mortgage and mezzanine loan secured by our Medical Office Portfolio. This debt has a weighted average interest rate of SOFR + 2.18% that we swapped to a fixed rate of 3.46%. The remainder have a weighted average rate of SOFR + 3.38%. (k) Consists of: (i) a $772.8 million term loan facility that matures in July 2026, of which $383.0 million has an annual interest rate of SOFR + 2.60% and $389.8 million has an annual interest rate of SOFR + 3.35%, subject to a 0.75% SOFR floor, (ii) a $150.0 million revolving credit facility that matures in April 2026 with an annual interest rate of SOFR + 2.60% and (iii) a $594.0 million term loan facility that matures in November 2027, with an annual interest rate of SOFR + 3.25%, subject to a 0.50% SOFR floor. These facilities are secured by the equity interests in certain of our subsidiaries which totaled $5.9 billion as of December 31, 2023. The above table no longer reflects property mortgages of the Woodstar Portfolios, which as discussed in Notes 2 and 8, are now reflected within “Investments of consolidated affordable housing fund” on our consolidated balance sheets. In the normal course of business, the Company is in discussions with its lenders to extend, amend or replace any financing facilities which contain near term expirations. During the year ended December 31, 2023, we entered into Residential Loans facilities of $1.8 billion and amended or terminated several Residential Loans facilities, resulting in an aggregate net downsize of $87.9 million. The weighted average spread on the new facilities was 39 bps lower than the facilities that were repaid. During the year ended December 31, 2023, we entered into a commercial credit facility of $63.4 million. In addition, we amended several commercial credit facilities resulting in an aggregate net upsize of $206.0 million. Our secured financing agreements contain certain financial tests and covenants. As of December 31, 2023, we were in compliance with all such covenants. We seek to mitigate risks associated with our repurchase agreements by managing risk related to the credit quality of our assets, interest rates, liquidity, prepayment speeds and market value. The margin call provisions under the majority of our repurchase facilities, consisting of 67% of these agreements, do not permit valuation adjustments based on capital market events and are limited to collateral-specific credit marks generally determined on a commercially reasonable basis. To monitor credit risk associated with the performance and value of our loans and investments, our asset management team regularly reviews our investment portfolios and is in regular contact with our borrowers, monitoring performance of the collateral and enforcing our rights as necessary. For the 33% of repurchase agreements which do permit valuation adjustments based on capital market events, approximately 6% of these pertain to our loans held-for-sale, for which we manage credit risk through the purchase of credit index instruments. We further seek to manage risks associated with our repurchase agreements by matching the maturities and interest rate characteristics of our loans with the related repurchase agreement. For the years ended December 31, 2023, 2022 and 2021, approximately $40.7 million, $38.2 million and $35.6 million, respectively, of amortization of deferred financing costs from secured financing agreements was included in interest expense on our consolidated statements of operations. As of December 31, 2023, Morgan Stanley Bank, N.A. held collateral sold under certain of our repurchase agreements with carrying values that exceeded the respective repurchase obligations by $858.4 million. The weighted average extended maturity of those repurchase agreements is 3.7 years. Collateralized Loan Obligations and Single Asset Securitization Commercial and Residential Lending Segment In February 2022, we refinanced a pool of our commercial loans held-for-investment through a CLO, STWD 2022-FL3. On the closing date, the CLO issued $1.0 billion of notes and preferred shares, of which $842.5 million of notes were purchased by third party investors. We retained $82.5 million of notes along with preferred shares with a liquidation preference of $75.0 million. The CLO contains a reinvestment feature that, subject to certain eligibility criteria, allows us to contribute new loans or participation interests in loans to the CLO for a period of two years. During the years ended December 31, 2023 and 2022, we utilized the reinvestment feature, contributing $52.2 million and $80.0 million, respectively, of additional interests into the CLO. In July 2021, we contributed into a single asset securitization, STWD 2021-HTS, a previously originated $230.0 million first mortgage and mezzanine loan on a portfolio of 41 extended stay hotels with $210.1 million of third party financing. In May 2021, we refinanced a pool of our commercial loans held-for-investment through a CLO, STWD 2021-FL2. On the closing date, the CLO issued $1.3 billion of notes and preferred shares, of which $1.1 billion of notes were purchased by third party investors. We retained $70.1 million of notes, along with preferred shares with a liquidation preference of $127.5 million. The CLO contains a reinvestment feature that, subject to certain eligibility criteria, allows us to contribute new loans or participation interests in loans to the CLO in exchange for cash. During the years ended December 31, 2023, 2022 and 2021, we utilized the reinvestment feature, contributing $99.1 million, $257.2 million and $58.6 million, respectively, of additional interests into the CLO. During the year ended December 31, 2023, the reinvestment period expired, and we repaid CLO debt in the amount of $1.2 million. In August 2019, we refinanced a pool of our commercial loans held-for-investment through a CLO, STWD 2019-FL1. On the closing date, the CLO issued $1.1 billion of notes and preferred shares, of which $936.4 million of notes were purchased by third party investors. We retained $86.6 million of notes, along with preferred shares with a liquidation preference of $77.0 million. The CLO contains a reinvestment feature that, subject to certain eligibility criteria, allows us to contribute new loans or participation interests in loans to the CLO in exchange for cash. During the year ended December 31, 2021, we utilized the reinvestment feature, contributing $261.9 million of additional interests into the CLO. The reinvestment period expired during 2022, and we repaid CLO debt in the amount of $168.6 million and $197.2 million during the years ended December 31, 2023 and 2022, respectively. Infrastructure Lending Segment In January 2022, we refinanced a pool of our infrastructure loans held-for-investment through a CLO, STWD 2021-SIF2. On the closing date, the CLO issued $500.0 million of notes and preferred shares, of which $410.0 million of notes were purchased by third party investors. We retained preferred shares with a liquidation preference of $90.0 million. The CLO contains a reinvestment feature that, subject to certain eligibility criteria, allows us to contribute new loans or participation interests in loans to the CLO for a period of three years. During the years ended December 31, 2023 and 2022, we utilized the reinvestment feature, contributing $205.7 million and $112.9 million, respectively, of additional interests into the CLO. In April 2021, we refinanced a pool of our infrastructure loans held-for-investment through a CLO, STWD 2021-SIF1. On the closing date, the CLO issued $500.0 million of notes and preferred shares, of which $410.0 million of notes were purchased by third party investors. We retained preferred shares with a liquidation preference of $90.0 million. The CLO contains a reinvestment feature that, subject to certain eligibility criteria, allows us to contribute new loans or participation interests in loans to the CLO for a period of three years. During the years ended December 31, 2023, 2022 and 2021, we utilized the reinvestment feature, contributing $213.8 million, $93.8 million and $45.9 million, respectively, of additional interests into the CLO. The following table is a summary of our CLOs and our SASB as of December 31, 2023 and 2022 (amounts in thousands): December 31, 2023 Count Face Carrying Weighted Maturity STWD 2022-FL3 Collateral assets 48 $ 997,569 $ 1,007,532 SOFR + 3.53% (a) May 2026 (b) Financing 1 $ 840,620 $ 837,881 SOFR + 1.89% (c) November 2038 (d) STWD 2021-HTS Collateral assets 1 $ 223,193 $ 224,509 SOFR + 3.87% (a) April 2026 (b) Financing 1 $ 203,284 $ 203,058 SOFR + 2.82% (c) April 2034 (d) STWD 2021-FL2 Collateral assets 34 $ 1,272,585 $ 1,288,165 SOFR + 3.95% (a) January 2026 (b) Financing 1 $ 1,065,713 $ 1,063,454 SOFR + 1.85% (c) April 2038 (d) STWD 2019-FL1 Collateral assets 14 $ 734,099 $ 739,684 SOFR + 3.51% (a) May 2025 (b) Financing 1 $ 570,546 $ 570,546 SOFR + 1.62% (c) July 2038 (d) STWD 2021-SIF2 Collateral assets 30 $ 499,401 $ 514,286 SOFR + 3.87% (a) December 2027 (b) Financing 1 $ 410,000 $ 408,166 SOFR + 2.11% (c) January 2033 (d) STWD 2021-SIF1 Collateral assets 32 $ 499,767 $ 514,594 SOFR + 3.97% (a) August 2027 (b) Financing 1 $ 410,000 $ 408,187 SOFR + 2.42% (c) April 2032 (d) Total Collateral assets $ 4,226,614 $ 4,288,770 Financing $ 3,500,163 $ 3,491,292 December 31, 2022 STWD 2022-FL3 Collateral assets 51 $ 1,000,000 $ 1,010,051 Index + 3.52% (a) February 2026 (b) Financing 1 $ 842,500 $ 842,374 SOFR + 1.93% (c) November 2038 (d) STWD 2021-HTS Collateral assets 1 $ 230,000 $ 231,186 LIBOR + 3.85% (a) April 2026 (b) Financing 1 $ 210,091 $ 208,961 LIBOR + 2.71% (c) April 2034 (d) STWD 2021-FL2 Collateral assets 36 $ 1,277,474 $ 1,284,240 Index + 4.04% (a) June 2025 (b) Financing 1 $ 1,077,375 $ 1,072,403 LIBOR + 1.80% (c) April 2038 (d) STWD 2019-FL1 Collateral assets 16 $ 902,799 $ 906,409 Index + 3.67% (a) December 2024 (b) Financing 1 $ 739,174 $ 738,473 SOFR + 1.64% (c) July 2038 (d) STWD 2021-SIF2 Collateral assets 31 $ 495,587 $ 510,730 Index + 3.73% (a) February 2027 (b) Financing 1 $ 410,000 $ 407,260 SOFR + 2.11% (c) January 2033 (d) STWD 2021-SIF1 Collateral assets 31 $ 495,781 $ 511,471 Index + 3.76% (a) November 2026 (b) Financing 1 $ 410,000 $ 406,753 LIBOR + 2.15% (c) April 2032 (d) Total Collateral assets $ 4,401,641 $ 4,454,087 Financing $ 3,689,140 $ 3,676,224 ___________________________________________________________________________________________________________________________________ (a) Represents the weighted-average coupon earned on variable rate loans during the respective year-to-date period and excludes loans for which interest income is not recognized. Of the loans financed by the STWD 2021-FL2 CLO as of December 31, 2023, 7% earned fixed-rate weighted average interest of 7.39%. Of the investments financed by the STWD 2021-SIF1 CLO as of December 31, 2023, 2% earned fixed-rate weighted average interest of 5.70%. (b) Represents the weighted-average maturity, assuming the extended contractual maturity of the collateral assets. (c) Represents the weighted-average cost of financing, inclusive of deferred issuance costs. (d) Repayments of the CLOs and SASB are tied to timing of the related collateral asset repayments. The term of the CLOs and SASB financing obligations represents the legal final maturity date. We incurred $37.9 million of issuance costs in connection with the CLOs and SASB, which are amortized on an effective yield basis over the estimated life of the CLOs and SASB. For the years ended December 31, 2023, 2022 and 2021, approximately $8.7 million, $10.5 million and $5.7 million, respectively, of amortization of deferred financing costs was included in interest expense on our consolidated statements of operations. As of December 31, 2023 and 2022, our unamortized issuance costs were $9.5 million and $18.2 million, respectively. The CLOs and SASB are considered VIEs, for which we are deemed the primary beneficiary. We therefore consolidate the CLOs and SASB. Refer to Note 16 for further discussion. Maturities Our credit facilities generally require principal to be paid down prior to the facilities’ respective maturities if and when we receive principal payments on, or sell, the investment collateral that we have pledged. The following table sets forth our principal repayments schedule for secured financings based on the earlier of (i) the extended contractual maturity of each credit facility or (ii) the extended contractual maturity of each of the investments that have been pledged as collateral under the respective credit facility (amounts in thousands): Repurchase Other Secured Financing (a) CLOs and SASB (b) Total 2024 $ 1,326,226 $ 658,382 $ 505,165 $ 2,489,773 2025 2,186,047 279,752 831,133 3,296,932 2026 2,951,048 1,041,635 1,818,554 5,811,237 2027 3,225,566 1,119,753 129,044 4,474,363 2028 753,565 189,387 206,597 1,149,549 Thereafter 209,907 7,560 9,670 227,137 Total $ 10,652,359 $ 3,296,469 $ 3,500,163 $ 17,448,991 ______________________________________________________________________________________________________________________ (a) Excludes debt related to properties held-for-sale (see Note 7). (b) For the CLOs, the above does not assume utilization of their reinvestment features. The SASB does not have a reinvestment feature. The following table is a summary of our unsecured senior notes outstanding as of December 31, 2023 and 2022 (dollars in thousands): Coupon Effective Maturity Remaining Carrying Value at December 31, 2023 December 31, 2022 2023 Convertible Notes 4.38 % 4.57 % 4/1/2023 N/A — 250,000 2027 Convertible Notes 6.75 % 7.48 % 7/15/2027 3.5 years 380,750 — 2023 Senior Notes 5.50 % 5.71 % 11/1/2023 N/A — 300,000 2024 Senior Notes 3.75 % 3.94 % 12/31/2024 1.0 year 400,000 400,000 2025 Senior Notes 4.75 % (2) 5.04 % 3/15/2025 1.2 years 500,000 500,000 2026 Senior Notes 3.63 % 3.77 % 7/15/2026 2.5 years 400,000 400,000 2027 Senior Notes 4.38 % (3) 4.49 % 1/15/2027 3.0 years 500,000 500,000 Total principal amount 2,180,750 2,350,000 Unamortized discount—Convertible Notes (8,570) (118) Unamortized discount—Senior Notes (5,445) (9,051) Unamortized deferred financing costs (7,847) (11,620) Total carrying amount $ 2,158,888 $ 2,329,211 ______________________________________________________________________________________________________________________ (1) Effective rate includes the effects of underwriter purchase discount. (2) The coupon on the 2025 Senior Notes is 4.75%. At closing, we swapped $470.0 million of the notes to a floating rate of LIBOR + 2.53%, which was converted to SOFR + 2.53% effective July 2023. (3) The coupon on the 2027 Senior Notes is 4.375%. At closing, we swapped the notes to a floating rate of SOFR + 2.95%. Senior Notes Due 2023 On November 2, 2020, we issued $300.0 million of 5.50% Senior Notes due 2023 (the “2023 Senior Notes”). The entire $300.0 million principal balance of the 2023 Senior Notes was repaid at maturity on November 1, 2023. Senior Notes Due 2024 On December 15, 2021, we issued $400.0 million of 3.75% Senior Notes due 2024 (the “2024 Senior Notes”). The 2024 Senior Notes mature on December 31, 2024. Prior to September 30, 2024, we may redeem some or all of the 2024 Senior Notes at a price equal to 100% of the principal amount thereof, plus the applicable “make-whole” premium as of the applicable date of redemption. On and after September 30, 2024, we may redeem some or all of the 2024 Senior Notes at a price equal to 100% of the principal amount thereof. In addition, prior to September 30, 2024, we may redeem up to 40% of the 2024 Senior Notes at the applicable redemption price using the proceeds of certain equity offerings. Senior Notes Due 2025 On December 4, 2017, we issued $500.0 million of 4.75% Senior Notes due 2025 (the “2025 Senior Notes”). The 2025 Senior Notes mature on March 15, 2025. Prior to September 15, 2024, we may redeem some or all of the 2025 Senior Notes at a price equal to 100% of the principal amount thereof, plus the applicable “make-whole” premium as of the applicable date of redemption. On and after September 15, 2024, we may redeem some or all of the 2025 Senior Notes at a price equal to 100% of the principal amount thereof. Senior Notes Due 2026 On July 14, 2021, we issued $400.0 million of 3.625% Senior Notes due 2026 (the “2026 Senior Notes”). The 2026 Senior Notes mature on July 15, 2026. Prior to January 15, 2026, we may redeem some or all of the 2026 Senior Notes at a price equal to 100% of the principal amount thereof, plus the applicable “make-whole” premium as of the applicable date of redemption. On and after January 15, 2026, we may redeem some or all of the 2026 Senior Notes at a price equal to 100% of the principal amount thereof. Senior Notes Due 2027 On January 25, 2022, we issued $500.0 million of 4.375% Senior Notes due 2027 (the “2027 Senior Notes”). The 2027 Senior Notes mature on January 15, 2027. Prior to July 15, 2026, we may redeem some or all of the 2027 Senior Notes at a price equal to 100% of the principal amount thereof, plus the applicable “make-whole” premium as of the applicable date of redemption. On and after July 15, 2026, we may redeem some or all of the 2027 Senior Notes at a price equal to 100% of the principal amount thereof. In addition, prior to July 15, 2025, we may redeem up to 40% of the 2027 Senior Notes at the applicable redemption price using the proceeds of certain equity offerings. Our unsecured senior notes contain certain financial tests and covenants. As of December 31, 2023, we were in compliance with all such covenants. Convertible Senior Notes In July 2023, we issued $380.8 million of 6.750% Convertible Senior Notes due 2027 (the “2027 Convertible Notes”) for net proceeds of $371.2 million. The notes mature on July 15, 2027. In March 2017, we issued $250.0 million of 4.375% Convertible Senior Notes due 2023 (the “2023 Convertible Notes”). The entire $250.0 million principal balance of the 2023 Convertible Notes was repaid in cash at maturity on April 1, 2023. We recognized interest expense from our Convertible Notes of $16.6 million during the year ended December 31, 2023, and $11.6 million during each of the years ended December 31, 2022 and 2021. The following table details the conversion attributes of our Convertible Notes outstanding as of December 31, 2023 (amounts in thousands, except rates): December 31, 2023 Conversion Conversion Rate (1) Price (2) 2027 Convertible Notes 48.1783 $ 20.76 ______________________________________________________________________________________________________________________ (1) The conversion rate represents the number of shares of common stock issuable per $1,000 principal amount of 2027 Convertible Notes converted, as adjusted in accordance with the indenture governing the 2027 Convertible Notes (including the applicable supplemental indenture). (2) As of December 31, 2023, the market price of the Company’s common stock was $21.02. The if-converted value of the 2027 Convertible Notes exceeded their principal amount by $4.8 million at December 31, 2023 as the closing market price of the Company’s common stock of $21.02 was greater than the implicit conversion price of $20.76 per share. The if-converted value of the principal amount of the 2027 Convertible Notes was $385.6 million as of December 31, 2023. As of December 31, 2023, the net carrying amount and fair value of the 2027 Convertible Notes was $371.5 million and $390.6 million, respectively. Upon conversion of the 2027 Convertible Notes, settlement may be made in common stock, cash or a combination of both, at the option of the Company. Conditions for Conversion Prior to January 15, 2027, the 2027 Convertible Notes will be convertible only upon satisfaction of one or more of the following conditions: (1) the closing market price of the Company’s common stock is at least 110% of the conversion price of the 2027 Convertible Notes for at least 20 out of 30 trading days prior to the end of the preceding fiscal quarter, (2) the trading price of the 2027 Convertible Notes is less than 98% of the product of (i) the conversion rate and (ii) the closing price of the Company’s common stock during any five On or after January 15, 2027, holders of the 2027 Convertible Notes may convert each of their notes at the applicable conversion rate at any time prior to the close of business on the second scheduled trading day immediately preceding the maturity date. |
Unsecured Senior Notes
Unsecured Senior Notes | 12 Months Ended |
Dec. 31, 2023 | |
Debt Instruments [Abstract] | |
Unsecured Senior Notes | Secured Borrowings Secured Financing Agreements The following table is a summary of our secured financing agreements in place as of December 31, 2023 and 2022 (dollars in thousands): Outstanding Balance at Current Extended Maturity (a) Weighted Average Pledged Asset Maximum December 31, 2023 December 31, 2022 Repurchase Agreements: Commercial Loans Jun 2024 to Dec 2028 (b) Oct 2025 to Dec 2030 (b) Index + 2.07% (c) $ 10,267,245 $ 12,109,808 (d) $ 7,170,389 $ 7,746,867 Residential Loans Aug 2024 to Oct 2025 Aug 2024 to Apr 2026 SOFR + 1.90% 2,602,728 3,450,000 2,287,655 1,912,774 Infrastructure Loans Sep 2024 Sep 2026 SOFR + 2.07% 541,979 650,000 453,217 290,431 Conduit Loans Dec 2024 to Jun 2026 Dec 2025 to Jun 2027 SOFR + 2.30% 31,690 375,000 26,930 8,423 CMBS/RMBS Sep 2024 to Apr 2032 (e) Dec 2024 to Oct 2032 (e) (f) 1,424,610 995,907 714,168 (g) 840,625 Total Repurchase Agreements 14,868,252 17,580,715 10,652,359 10,799,120 Other Secured Financing: Borrowing Base Facility Nov 2024 Oct 2026 SOFR + 2.11% 479,925 750,000 (h) 27,639 — Commercial Financing Facilities Jul 2024 to Aug 2028 Jul 2025 to Dec 2030 Index + 2.20% 557,888 572,552 (i) 387,822 311,825 Residential Financing Facility N/A N/A N/A — — — 244,418 Infrastructure Financing Facilities Jun 2025 to Oct 2025 Jun 2027 to Jul 2032 Index + 2.14% 877,591 1,550,000 631,187 765,265 Property Mortgages - Fixed rate Oct 2025 to Jun 2026 N/A 4.52% 32,772 29,898 29,898 261,100 Property Mortgages - Variable rate Jun 2024 to Mar 2026 N/A (j) 895,159 855,080 853,145 847,633 Term Loans and Revolver (k) N/A (k) N/A (k) 1,516,778 1,366,778 1,380,766 Total Other Secured Financing 2,843,335 5,274,308 3,296,469 3,811,007 $ 17,711,587 $ 22,855,023 13,948,828 14,610,127 Unamortized net discount (24,975) (30,320) Unamortized deferred financing costs (55,857) (78,275) $ 13,867,996 $ 14,501,532 ______________________________________________________________________________________________________________________ (a) Subject to certain conditions as defined in the respective facility agreement. (b) For certain facilities, borrowings collateralized by loans existing at maturity may remain outstanding until such loan collateral matures, subject to certain specified conditions. (c) Certain facilities with an outstanding balance of $2.8 billion as of December 31, 2023 are indexed to EURIBOR, BBSY, SARON and SONIA. The remainder are indexed to SOFR. (d) Certain facilities with an aggregate initial maximum facility size of $11.7 billion may be increased to $12.1 billion, subject to certain conditions. The $12.1 billion amount includes such upsizes. (e) Certain facilities with an outstanding balance of $332.6 million as of December 31, 2023 carry a rolling 11-month or 12-month term which may reset monthly or quarterly with the lender's consent. These facilities carry no maximum facility size. (f) A facility with an outstanding balance of $281.3 million as of December 31, 2023 has a weighted average fixed annual interest rate of 3.54%. All other facilities are variable rate with a weighted average rate of SOFR + 2.22%. (g) Includes: (i) $281.3 million outstanding on a repurchase facility that is not subject to margin calls; and (ii) $33.0 million outstanding on one of our repurchase facilities that represents the 49% pro rata share owed by a non-controlling partner in a consolidated joint venture (see Note 16). (h) The maximum facility size as of December 31, 2023 of $450.0 million may be increased to $750.0 million, subject to certain conditions. (i) Certain facilities with an aggregate initial maximum facility size of $472.6 million may be increased to $572.6 million, subject to certain conditions. The $572.6 million amount includes such upsizes. (j) Includes a $600.0 million first mortgage and mezzanine loan secured by our Medical Office Portfolio. This debt has a weighted average interest rate of SOFR + 2.18% that we swapped to a fixed rate of 3.46%. The remainder have a weighted average rate of SOFR + 3.38%. (k) Consists of: (i) a $772.8 million term loan facility that matures in July 2026, of which $383.0 million has an annual interest rate of SOFR + 2.60% and $389.8 million has an annual interest rate of SOFR + 3.35%, subject to a 0.75% SOFR floor, (ii) a $150.0 million revolving credit facility that matures in April 2026 with an annual interest rate of SOFR + 2.60% and (iii) a $594.0 million term loan facility that matures in November 2027, with an annual interest rate of SOFR + 3.25%, subject to a 0.50% SOFR floor. These facilities are secured by the equity interests in certain of our subsidiaries which totaled $5.9 billion as of December 31, 2023. The above table no longer reflects property mortgages of the Woodstar Portfolios, which as discussed in Notes 2 and 8, are now reflected within “Investments of consolidated affordable housing fund” on our consolidated balance sheets. In the normal course of business, the Company is in discussions with its lenders to extend, amend or replace any financing facilities which contain near term expirations. During the year ended December 31, 2023, we entered into Residential Loans facilities of $1.8 billion and amended or terminated several Residential Loans facilities, resulting in an aggregate net downsize of $87.9 million. The weighted average spread on the new facilities was 39 bps lower than the facilities that were repaid. During the year ended December 31, 2023, we entered into a commercial credit facility of $63.4 million. In addition, we amended several commercial credit facilities resulting in an aggregate net upsize of $206.0 million. Our secured financing agreements contain certain financial tests and covenants. As of December 31, 2023, we were in compliance with all such covenants. We seek to mitigate risks associated with our repurchase agreements by managing risk related to the credit quality of our assets, interest rates, liquidity, prepayment speeds and market value. The margin call provisions under the majority of our repurchase facilities, consisting of 67% of these agreements, do not permit valuation adjustments based on capital market events and are limited to collateral-specific credit marks generally determined on a commercially reasonable basis. To monitor credit risk associated with the performance and value of our loans and investments, our asset management team regularly reviews our investment portfolios and is in regular contact with our borrowers, monitoring performance of the collateral and enforcing our rights as necessary. For the 33% of repurchase agreements which do permit valuation adjustments based on capital market events, approximately 6% of these pertain to our loans held-for-sale, for which we manage credit risk through the purchase of credit index instruments. We further seek to manage risks associated with our repurchase agreements by matching the maturities and interest rate characteristics of our loans with the related repurchase agreement. For the years ended December 31, 2023, 2022 and 2021, approximately $40.7 million, $38.2 million and $35.6 million, respectively, of amortization of deferred financing costs from secured financing agreements was included in interest expense on our consolidated statements of operations. As of December 31, 2023, Morgan Stanley Bank, N.A. held collateral sold under certain of our repurchase agreements with carrying values that exceeded the respective repurchase obligations by $858.4 million. The weighted average extended maturity of those repurchase agreements is 3.7 years. Collateralized Loan Obligations and Single Asset Securitization Commercial and Residential Lending Segment In February 2022, we refinanced a pool of our commercial loans held-for-investment through a CLO, STWD 2022-FL3. On the closing date, the CLO issued $1.0 billion of notes and preferred shares, of which $842.5 million of notes were purchased by third party investors. We retained $82.5 million of notes along with preferred shares with a liquidation preference of $75.0 million. The CLO contains a reinvestment feature that, subject to certain eligibility criteria, allows us to contribute new loans or participation interests in loans to the CLO for a period of two years. During the years ended December 31, 2023 and 2022, we utilized the reinvestment feature, contributing $52.2 million and $80.0 million, respectively, of additional interests into the CLO. In July 2021, we contributed into a single asset securitization, STWD 2021-HTS, a previously originated $230.0 million first mortgage and mezzanine loan on a portfolio of 41 extended stay hotels with $210.1 million of third party financing. In May 2021, we refinanced a pool of our commercial loans held-for-investment through a CLO, STWD 2021-FL2. On the closing date, the CLO issued $1.3 billion of notes and preferred shares, of which $1.1 billion of notes were purchased by third party investors. We retained $70.1 million of notes, along with preferred shares with a liquidation preference of $127.5 million. The CLO contains a reinvestment feature that, subject to certain eligibility criteria, allows us to contribute new loans or participation interests in loans to the CLO in exchange for cash. During the years ended December 31, 2023, 2022 and 2021, we utilized the reinvestment feature, contributing $99.1 million, $257.2 million and $58.6 million, respectively, of additional interests into the CLO. During the year ended December 31, 2023, the reinvestment period expired, and we repaid CLO debt in the amount of $1.2 million. In August 2019, we refinanced a pool of our commercial loans held-for-investment through a CLO, STWD 2019-FL1. On the closing date, the CLO issued $1.1 billion of notes and preferred shares, of which $936.4 million of notes were purchased by third party investors. We retained $86.6 million of notes, along with preferred shares with a liquidation preference of $77.0 million. The CLO contains a reinvestment feature that, subject to certain eligibility criteria, allows us to contribute new loans or participation interests in loans to the CLO in exchange for cash. During the year ended December 31, 2021, we utilized the reinvestment feature, contributing $261.9 million of additional interests into the CLO. The reinvestment period expired during 2022, and we repaid CLO debt in the amount of $168.6 million and $197.2 million during the years ended December 31, 2023 and 2022, respectively. Infrastructure Lending Segment In January 2022, we refinanced a pool of our infrastructure loans held-for-investment through a CLO, STWD 2021-SIF2. On the closing date, the CLO issued $500.0 million of notes and preferred shares, of which $410.0 million of notes were purchased by third party investors. We retained preferred shares with a liquidation preference of $90.0 million. The CLO contains a reinvestment feature that, subject to certain eligibility criteria, allows us to contribute new loans or participation interests in loans to the CLO for a period of three years. During the years ended December 31, 2023 and 2022, we utilized the reinvestment feature, contributing $205.7 million and $112.9 million, respectively, of additional interests into the CLO. In April 2021, we refinanced a pool of our infrastructure loans held-for-investment through a CLO, STWD 2021-SIF1. On the closing date, the CLO issued $500.0 million of notes and preferred shares, of which $410.0 million of notes were purchased by third party investors. We retained preferred shares with a liquidation preference of $90.0 million. The CLO contains a reinvestment feature that, subject to certain eligibility criteria, allows us to contribute new loans or participation interests in loans to the CLO for a period of three years. During the years ended December 31, 2023, 2022 and 2021, we utilized the reinvestment feature, contributing $213.8 million, $93.8 million and $45.9 million, respectively, of additional interests into the CLO. The following table is a summary of our CLOs and our SASB as of December 31, 2023 and 2022 (amounts in thousands): December 31, 2023 Count Face Carrying Weighted Maturity STWD 2022-FL3 Collateral assets 48 $ 997,569 $ 1,007,532 SOFR + 3.53% (a) May 2026 (b) Financing 1 $ 840,620 $ 837,881 SOFR + 1.89% (c) November 2038 (d) STWD 2021-HTS Collateral assets 1 $ 223,193 $ 224,509 SOFR + 3.87% (a) April 2026 (b) Financing 1 $ 203,284 $ 203,058 SOFR + 2.82% (c) April 2034 (d) STWD 2021-FL2 Collateral assets 34 $ 1,272,585 $ 1,288,165 SOFR + 3.95% (a) January 2026 (b) Financing 1 $ 1,065,713 $ 1,063,454 SOFR + 1.85% (c) April 2038 (d) STWD 2019-FL1 Collateral assets 14 $ 734,099 $ 739,684 SOFR + 3.51% (a) May 2025 (b) Financing 1 $ 570,546 $ 570,546 SOFR + 1.62% (c) July 2038 (d) STWD 2021-SIF2 Collateral assets 30 $ 499,401 $ 514,286 SOFR + 3.87% (a) December 2027 (b) Financing 1 $ 410,000 $ 408,166 SOFR + 2.11% (c) January 2033 (d) STWD 2021-SIF1 Collateral assets 32 $ 499,767 $ 514,594 SOFR + 3.97% (a) August 2027 (b) Financing 1 $ 410,000 $ 408,187 SOFR + 2.42% (c) April 2032 (d) Total Collateral assets $ 4,226,614 $ 4,288,770 Financing $ 3,500,163 $ 3,491,292 December 31, 2022 STWD 2022-FL3 Collateral assets 51 $ 1,000,000 $ 1,010,051 Index + 3.52% (a) February 2026 (b) Financing 1 $ 842,500 $ 842,374 SOFR + 1.93% (c) November 2038 (d) STWD 2021-HTS Collateral assets 1 $ 230,000 $ 231,186 LIBOR + 3.85% (a) April 2026 (b) Financing 1 $ 210,091 $ 208,961 LIBOR + 2.71% (c) April 2034 (d) STWD 2021-FL2 Collateral assets 36 $ 1,277,474 $ 1,284,240 Index + 4.04% (a) June 2025 (b) Financing 1 $ 1,077,375 $ 1,072,403 LIBOR + 1.80% (c) April 2038 (d) STWD 2019-FL1 Collateral assets 16 $ 902,799 $ 906,409 Index + 3.67% (a) December 2024 (b) Financing 1 $ 739,174 $ 738,473 SOFR + 1.64% (c) July 2038 (d) STWD 2021-SIF2 Collateral assets 31 $ 495,587 $ 510,730 Index + 3.73% (a) February 2027 (b) Financing 1 $ 410,000 $ 407,260 SOFR + 2.11% (c) January 2033 (d) STWD 2021-SIF1 Collateral assets 31 $ 495,781 $ 511,471 Index + 3.76% (a) November 2026 (b) Financing 1 $ 410,000 $ 406,753 LIBOR + 2.15% (c) April 2032 (d) Total Collateral assets $ 4,401,641 $ 4,454,087 Financing $ 3,689,140 $ 3,676,224 ___________________________________________________________________________________________________________________________________ (a) Represents the weighted-average coupon earned on variable rate loans during the respective year-to-date period and excludes loans for which interest income is not recognized. Of the loans financed by the STWD 2021-FL2 CLO as of December 31, 2023, 7% earned fixed-rate weighted average interest of 7.39%. Of the investments financed by the STWD 2021-SIF1 CLO as of December 31, 2023, 2% earned fixed-rate weighted average interest of 5.70%. (b) Represents the weighted-average maturity, assuming the extended contractual maturity of the collateral assets. (c) Represents the weighted-average cost of financing, inclusive of deferred issuance costs. (d) Repayments of the CLOs and SASB are tied to timing of the related collateral asset repayments. The term of the CLOs and SASB financing obligations represents the legal final maturity date. We incurred $37.9 million of issuance costs in connection with the CLOs and SASB, which are amortized on an effective yield basis over the estimated life of the CLOs and SASB. For the years ended December 31, 2023, 2022 and 2021, approximately $8.7 million, $10.5 million and $5.7 million, respectively, of amortization of deferred financing costs was included in interest expense on our consolidated statements of operations. As of December 31, 2023 and 2022, our unamortized issuance costs were $9.5 million and $18.2 million, respectively. The CLOs and SASB are considered VIEs, for which we are deemed the primary beneficiary. We therefore consolidate the CLOs and SASB. Refer to Note 16 for further discussion. Maturities Our credit facilities generally require principal to be paid down prior to the facilities’ respective maturities if and when we receive principal payments on, or sell, the investment collateral that we have pledged. The following table sets forth our principal repayments schedule for secured financings based on the earlier of (i) the extended contractual maturity of each credit facility or (ii) the extended contractual maturity of each of the investments that have been pledged as collateral under the respective credit facility (amounts in thousands): Repurchase Other Secured Financing (a) CLOs and SASB (b) Total 2024 $ 1,326,226 $ 658,382 $ 505,165 $ 2,489,773 2025 2,186,047 279,752 831,133 3,296,932 2026 2,951,048 1,041,635 1,818,554 5,811,237 2027 3,225,566 1,119,753 129,044 4,474,363 2028 753,565 189,387 206,597 1,149,549 Thereafter 209,907 7,560 9,670 227,137 Total $ 10,652,359 $ 3,296,469 $ 3,500,163 $ 17,448,991 ______________________________________________________________________________________________________________________ (a) Excludes debt related to properties held-for-sale (see Note 7). (b) For the CLOs, the above does not assume utilization of their reinvestment features. The SASB does not have a reinvestment feature. The following table is a summary of our unsecured senior notes outstanding as of December 31, 2023 and 2022 (dollars in thousands): Coupon Effective Maturity Remaining Carrying Value at December 31, 2023 December 31, 2022 2023 Convertible Notes 4.38 % 4.57 % 4/1/2023 N/A — 250,000 2027 Convertible Notes 6.75 % 7.48 % 7/15/2027 3.5 years 380,750 — 2023 Senior Notes 5.50 % 5.71 % 11/1/2023 N/A — 300,000 2024 Senior Notes 3.75 % 3.94 % 12/31/2024 1.0 year 400,000 400,000 2025 Senior Notes 4.75 % (2) 5.04 % 3/15/2025 1.2 years 500,000 500,000 2026 Senior Notes 3.63 % 3.77 % 7/15/2026 2.5 years 400,000 400,000 2027 Senior Notes 4.38 % (3) 4.49 % 1/15/2027 3.0 years 500,000 500,000 Total principal amount 2,180,750 2,350,000 Unamortized discount—Convertible Notes (8,570) (118) Unamortized discount—Senior Notes (5,445) (9,051) Unamortized deferred financing costs (7,847) (11,620) Total carrying amount $ 2,158,888 $ 2,329,211 ______________________________________________________________________________________________________________________ (1) Effective rate includes the effects of underwriter purchase discount. (2) The coupon on the 2025 Senior Notes is 4.75%. At closing, we swapped $470.0 million of the notes to a floating rate of LIBOR + 2.53%, which was converted to SOFR + 2.53% effective July 2023. (3) The coupon on the 2027 Senior Notes is 4.375%. At closing, we swapped the notes to a floating rate of SOFR + 2.95%. Senior Notes Due 2023 On November 2, 2020, we issued $300.0 million of 5.50% Senior Notes due 2023 (the “2023 Senior Notes”). The entire $300.0 million principal balance of the 2023 Senior Notes was repaid at maturity on November 1, 2023. Senior Notes Due 2024 On December 15, 2021, we issued $400.0 million of 3.75% Senior Notes due 2024 (the “2024 Senior Notes”). The 2024 Senior Notes mature on December 31, 2024. Prior to September 30, 2024, we may redeem some or all of the 2024 Senior Notes at a price equal to 100% of the principal amount thereof, plus the applicable “make-whole” premium as of the applicable date of redemption. On and after September 30, 2024, we may redeem some or all of the 2024 Senior Notes at a price equal to 100% of the principal amount thereof. In addition, prior to September 30, 2024, we may redeem up to 40% of the 2024 Senior Notes at the applicable redemption price using the proceeds of certain equity offerings. Senior Notes Due 2025 On December 4, 2017, we issued $500.0 million of 4.75% Senior Notes due 2025 (the “2025 Senior Notes”). The 2025 Senior Notes mature on March 15, 2025. Prior to September 15, 2024, we may redeem some or all of the 2025 Senior Notes at a price equal to 100% of the principal amount thereof, plus the applicable “make-whole” premium as of the applicable date of redemption. On and after September 15, 2024, we may redeem some or all of the 2025 Senior Notes at a price equal to 100% of the principal amount thereof. Senior Notes Due 2026 On July 14, 2021, we issued $400.0 million of 3.625% Senior Notes due 2026 (the “2026 Senior Notes”). The 2026 Senior Notes mature on July 15, 2026. Prior to January 15, 2026, we may redeem some or all of the 2026 Senior Notes at a price equal to 100% of the principal amount thereof, plus the applicable “make-whole” premium as of the applicable date of redemption. On and after January 15, 2026, we may redeem some or all of the 2026 Senior Notes at a price equal to 100% of the principal amount thereof. Senior Notes Due 2027 On January 25, 2022, we issued $500.0 million of 4.375% Senior Notes due 2027 (the “2027 Senior Notes”). The 2027 Senior Notes mature on January 15, 2027. Prior to July 15, 2026, we may redeem some or all of the 2027 Senior Notes at a price equal to 100% of the principal amount thereof, plus the applicable “make-whole” premium as of the applicable date of redemption. On and after July 15, 2026, we may redeem some or all of the 2027 Senior Notes at a price equal to 100% of the principal amount thereof. In addition, prior to July 15, 2025, we may redeem up to 40% of the 2027 Senior Notes at the applicable redemption price using the proceeds of certain equity offerings. Our unsecured senior notes contain certain financial tests and covenants. As of December 31, 2023, we were in compliance with all such covenants. Convertible Senior Notes In July 2023, we issued $380.8 million of 6.750% Convertible Senior Notes due 2027 (the “2027 Convertible Notes”) for net proceeds of $371.2 million. The notes mature on July 15, 2027. In March 2017, we issued $250.0 million of 4.375% Convertible Senior Notes due 2023 (the “2023 Convertible Notes”). The entire $250.0 million principal balance of the 2023 Convertible Notes was repaid in cash at maturity on April 1, 2023. We recognized interest expense from our Convertible Notes of $16.6 million during the year ended December 31, 2023, and $11.6 million during each of the years ended December 31, 2022 and 2021. The following table details the conversion attributes of our Convertible Notes outstanding as of December 31, 2023 (amounts in thousands, except rates): December 31, 2023 Conversion Conversion Rate (1) Price (2) 2027 Convertible Notes 48.1783 $ 20.76 ______________________________________________________________________________________________________________________ (1) The conversion rate represents the number of shares of common stock issuable per $1,000 principal amount of 2027 Convertible Notes converted, as adjusted in accordance with the indenture governing the 2027 Convertible Notes (including the applicable supplemental indenture). (2) As of December 31, 2023, the market price of the Company’s common stock was $21.02. The if-converted value of the 2027 Convertible Notes exceeded their principal amount by $4.8 million at December 31, 2023 as the closing market price of the Company’s common stock of $21.02 was greater than the implicit conversion price of $20.76 per share. The if-converted value of the principal amount of the 2027 Convertible Notes was $385.6 million as of December 31, 2023. As of December 31, 2023, the net carrying amount and fair value of the 2027 Convertible Notes was $371.5 million and $390.6 million, respectively. Upon conversion of the 2027 Convertible Notes, settlement may be made in common stock, cash or a combination of both, at the option of the Company. Conditions for Conversion Prior to January 15, 2027, the 2027 Convertible Notes will be convertible only upon satisfaction of one or more of the following conditions: (1) the closing market price of the Company’s common stock is at least 110% of the conversion price of the 2027 Convertible Notes for at least 20 out of 30 trading days prior to the end of the preceding fiscal quarter, (2) the trading price of the 2027 Convertible Notes is less than 98% of the product of (i) the conversion rate and (ii) the closing price of the Company’s common stock during any five On or after January 15, 2027, holders of the 2027 Convertible Notes may convert each of their notes at the applicable conversion rate at any time prior to the close of business on the second scheduled trading day immediately preceding the maturity date. |
Loan Securitization_Sale Activi
Loan Securitization/Sale Activities | 12 Months Ended |
Dec. 31, 2023 | |
Loan Securitization/Sale Activities | |
Loan Securitization/Sale Activities | Loan Securitization/Sale Activities As described below, we regularly sell loans and notes under various strategies. We evaluate such sales as to whether they meet the criteria for treatment as a sale—legal isolation, ability of transferee to pledge or exchange the transferred assets without constraint and transfer of control. Loan Securitizations Within the Investing and Servicing Segment, we originate commercial mortgage loans with the intent to sell these mortgage loans to VIEs for the purposes of securitization. These VIEs then issue CMBS that are collateralized in part by these assets, as well as other assets transferred to the VIE by third parties. Within the Commercial and Residential Lending Segment, we acquire residential loans with the intent to sell these mortgage loans to VIEs for the purpose of securitization. These VIEs then issue RMBS that are collateralized by these assets. In certain instances, we retain an interest in the CMBS or RMBS VIE and serve as special servicer or servicing administrator for the VIE. In these circumstances, we generally consolidate the VIE into which the loans were sold. The securitizations are subject to optional redemption after a certain period of time or when the pool balance falls below a specified threshold. During the year ended December 31, 2021, we exercised the optional redemption on certain of our residential securitizations and acquired $524.5 million of loans and redeemed $51.2 million of our existing RMBS holdings. The net amount paid to a consolidated VIE to redeem the outstanding principal amount of its RMBS certificates and acquire the underlying loans pursuant to this provision are reflected as repayment of debt of consolidated VIEs in our consolidated statements of cash flows. There were no such redemptions during the years ended December 31, 2023 and 2022. The following summarizes the face amount and proceeds of commercial and residential loans securitized for the years ended December 31, 2023, 2022 and 2021 (amounts in thousands): Commercial Loans Residential Loans Face Amount Proceeds Face Amount Proceeds For the Year Ended December 31, 2023 $ 759,740 $ 770,733 $ — $ — 2022 1,202,274 1,182,861 1,905,829 1,913,459 2021 1,185,251 1,242,974 2,287,733 2,362,798 The securitization of these commercial and residential loans does not result in a discrete gain or loss since they are carried under the fair value option. Our securitizations have each been structured as bankruptcy-remote entities whose assets are not intended to be available to the creditors of any other party. Commercial and Residential Loan Sales Within the Commercial and Residential Lending Segment, we originate or acquire commercial mortgage loans, subsequently selling all or a portion thereof. Typically, our motivation for entering into these transactions is to effectively create leverage on the subordinated position that we will retain and hold for investment. We also may sell certain of our previously-acquired residential loans to third parties outside a securitization. The following table summarizes our loans sold by the Commercial and Residential Lending Segment, net of expenses (amounts in thousands): Loan Transfers Accounted for as Sales Commercial Loans Residential Loans Face amount (1) Proceeds (1) Face Amount (2) Proceeds (2) For the Year Ended December 31, 2023 $ 95,496 $ 95,271 $ — $ — 2022 75,235 74,859 1,057,013 1,056,683 2021 335,552 328,878 216,827 225,940 ______________________________________________________________________________________________________________________ (1) During the year ended December 31, 2023, we sold $95.5 million of mezzanine loans at par less costs to sell. During the year ended December 31, 2022, we sold $11.5 million of senior interests in first mortgage loans and $63.7 million of whole loan interests for proceeds of $10.2 million and $64.6 million, respectively. During the year ended December 31, 2021, we sold $313.0 million of senior interests in first mortgage loans and $22.6 million of whole loan interests for proceeds of $307.3 million and $21.5 million, respectively. (2) Amounts in 2022 include the sale of $745.0 million of agency-eligible residential loans in February 2022, which were later repurchased in October 2022. See related discussion in Note 5. During the years ended December 31, 2023 and 2022, losses recognized by the Commercial and Residential Lending Segment on sales of commercial loans were immaterial. During the year ended December 31, 2021 losses recognized by the Commercial and Residential Lending Segment on sales of commercial loans were $1.1 million. Infrastructure Loan Sales |
Derivatives and Hedging Activit
Derivatives and Hedging Activity | 12 Months Ended |
Dec. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging Activity | Derivatives and Hedging Activity Risk Management Objective of Using Derivatives We are exposed to certain risks arising from both our business operations and economic conditions. We principally manage our exposures to a wide variety of business and operational risks through management of our core business activities. We manage economic risks, including interest rate, foreign exchange, liquidity and credit risk primarily by managing the amount, sources and duration of our debt funding and the use of derivative financial instruments. Specifically, we enter into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates, credit spreads, and foreign exchange rates. Our derivative financial instruments are used to manage differences in the amount, timing and duration of the known or expected cash receipts and known or expected cash payments principally related to our investments, anticipated level of loan sales, and borrowings. Designated Hedges The Company does not generally elect to apply the hedge accounting designation to its hedging instruments. As of December 31, 2023 and 2022, the Company did not have any designated hedges. Non-designated Hedges and Derivatives Derivatives not designated as hedges are derivatives that do not meet the criteria for hedge accounting under GAAP or which we have not elected to designate as hedges. We do not use these derivatives for speculative purposes but instead they are used to manage our exposure to various risks such as foreign exchange rates, interest rate changes and certain credit spreads. Changes in the fair value of derivatives not designated in hedging relationships are recorded directly in gain (loss) on derivative financial instruments in our consolidated statements of operations. We have entered into the following types of non-designated hedges and derivatives: • Foreign exchange (“Fx”) forwards whereby we agree to buy or sell a specified amount of foreign currency for a specified amount of USD at a future date, economically fixing the USD amounts of foreign denominated cash flows we expect to receive or pay related to certain foreign denominated loan investments; • Interest rate contracts which hedge a portion of our exposure to changes in interest rates; • Credit instruments which hedge a portion of our exposure to the credit risk of our commercial loans held-for-sale; and • Interest rate swap guarantees whereby we guarantee the interest rate swap obligations of certain Infrastructure Lending borrowers. Our interest rate swap guarantees were assumed in connection with the acquisition of the Infrastructure Lending Segment. The following table summarizes our non-designated derivatives as of December 31, 2023 (notional amounts in thousands): Type of Derivative Number of Contracts Aggregate Notional Amount Notional Currency Maturity Fx contracts – Buy Euros (“EUR”) 14 28,805 EUR January 2024 - April 2026 Fx contracts – Buy Pounds Sterling (“GBP”) 17 129,948 GBP January 2024 - January 2027 Fx contracts – Buy Australian dollar (“AUD”) 12 822,069 AUD January 2024 - October 2026 Fx contracts – Sell EUR 186 843,888 EUR January 2024 - February 2027 Fx contracts – Sell GBP 221 668,887 GBP January 2024 - April 2027 Fx contracts – Sell AUD 133 1,704,744 AUD January 2024 - July 2027 Fx contracts – Sell Swiss Franc (“CHF”) 65 20,423 CHF February 2024 - November 2025 Interest rate swaps – Paying fixed rates 51 4,456,559 USD April 2024 - October 2033 Interest rate swaps – Receiving fixed rates 2 970,000 USD March 2025 - January 2027 Interest rate caps 4 624,499 USD November 2024 - April 2025 Interest rate caps 1 61,000 GBP April 2024 Credit instruments 3 49,000 USD September 2058 - August 2061 Interest rate swap guarantees 1 100,456 USD June 2025 Total 710 The table below presents the fair value of our derivative financial instruments as well as their classification on the consolidated balance sheets as of December 31, 2023 and 2022 (amounts in thousands): Fair Value of Derivatives in an Asset Position (1) as of December 31, Fair Value of Derivatives in a Liability Position (2) as of December 31, 2023 2022 2023 2022 Interest rate contracts $ 8,899 $ 10,756 $ 48,401 $ 69,776 Interest rate swap guarantees — — — — Foreign exchange contracts 53,979 97,289 54,066 21,628 Credit instruments 559 576 — — Total derivatives $ 63,437 $ 108,621 $ 102,467 $ 91,404 ___________________________________________________ (1) Classified as derivative assets in our consolidated balance sheets. (2) Classified as derivative liabilities in our consolidated balance sheets. The table below presents the effect of our derivative financial instruments on the consolidated statements of operations for the years ended December 31, 2023, 2022 and 2021 (amounts in thousands): Derivatives Not Designated Location of (Loss) Gain Recognized in Income Amount of (Loss) Gain Recognized in Income for the Year Ended December 31, 2023 2022 2021 Interest rate contracts (Loss) gain on derivative financial instruments, net $ 27,293 $ 216,778 $ 41,033 Interest rate swap guarantees (Loss) gain on derivative financial instruments, net — 260 589 Foreign exchange contracts (Loss) gain on derivative financial instruments, net (65,085) 116,443 41,228 Credit instruments (Loss) gain on derivative financial instruments, net (813) 534 (487) $ (38,605) $ 334,015 $ 82,363 |
Offsetting Assets and Liabiliti
Offsetting Assets and Liabilities | 12 Months Ended |
Dec. 31, 2023 | |
Offsetting [Abstract] | |
Offsetting Assets and Liabilities | Offsetting Assets and Liabilities The following tables present the potential effects of netting arrangements on our financial position for financial assets and liabilities within the scope of ASC 210-20, Balance Sheet—Offsetting , which for us are derivative assets and liabilities as well as repurchase agreement liabilities (amounts in thousands): (ii) (iii) = (i) - (ii) (iv) (i) Financial Cash Collateral (v) = (iii) - (iv) As of December 31, 2023 Derivative assets $ 63,437 $ — $ 63,437 $ 41,341 $ — $ 22,096 Derivative liabilities $ 102,467 $ — $ 102,467 $ 41,340 $ 61,127 $ — Repurchase agreements 10,652,359 — 10,652,359 10,652,359 — — $ 10,754,826 $ — $ 10,754,826 $ 10,693,699 $ 61,127 $ — As of December 31, 2022 Derivative assets $ 108,621 $ — $ 108,621 $ 69,221 $ — $ 39,400 Derivative liabilities $ 91,404 $ — $ 91,404 $ 69,221 $ 22,183 $ — Repurchase agreements 10,799,120 — 10,799,120 10,799,120 — — $ 10,890,524 $ — $ 10,890,524 $ 10,868,341 $ 22,183 $ — |
Variable Interest Entities
Variable Interest Entities | 12 Months Ended |
Dec. 31, 2023 | |
Variable Interest Entities | |
Variable Interest Entities | Variable Interest Entities Investment Securities As discussed in Note 2, we evaluate all of our investments and other interests in entities for consolidation, including our investments in CMBS, RMBS and our retained interests in securitization transactions we initiated, all of which are generally considered to be variable interests in VIEs. Securitization VIEs consolidated in accordance with ASC 810 are structured as pass through entities that receive principal and interest on the underlying collateral and distribute those payments to the certificate holders. The assets and other instruments held by these securitization entities are restricted and can only be used to fulfill the obligations of the entity. Additionally, the obligations of the securitization entities do not have any recourse to the general credit of any other consolidated entities, nor to us as the primary beneficiary. The VIE liabilities initially represent investment securities on our balance sheet (pre-consolidation). Upon consolidation of these VIEs, our associated investment securities are eliminated, as is the interest income related to those securities. Similarly, the fees we earn in our roles as special servicer of the bonds issued by the consolidated VIEs or as collateral administrator of the consolidated VIEs are also eliminated. Finally, a portion of the identified servicing intangible associated with the eliminated fee streams is eliminated in consolidation. VIEs in which we are the Primary Beneficiary The inclusion of the assets and liabilities of securitization VIEs in which we are deemed the primary beneficiary has no economic effect on us. Our exposure to the obligations of securitization VIEs is generally limited to our investment in these entities. We are not obligated to provide, nor have we provided, any financial support for any of these consolidated structures. As discussed in Note 11, we have refinanced various pools of our commercial and infrastructure loans held-for-investment through five CLOs and one SASB, which are considered to be VIEs. We are the primary beneficiary of, and therefore consolidate, the CLOs and SASB in our financial statements as we have both (i) the power to direct the activities in our role as collateral manager, collateral advisor, or controlling class representative that most significantly impact the CLOs’ and SASB's economic performance, and (ii) the obligation to absorb losses and the right to receive benefits from the CLOs and SASB that could be potentially significant through the subordinate interests we own. The following table details the assets and liabilities of our consolidated CLOs and SASB as of December 31, 2023 and 2022 (amounts in thousands): December 31, 2023 December 31, 2022 Assets: Cash and cash equivalents $ 33,175 $ 31,611 Loans held-for-investment 4,210,097 4,365,791 Investment securities 9,946 36,466 Accrued interest receivable 26,355 20,088 Other assets 9,197 131 Total Assets $ 4,288,770 $ 4,454,087 Liabilities Accounts payable, accrued expenses and other liabilities $ 21,174 $ 17,737 Collateralized loan obligations and single asset securitization, net 3,491,292 3,676,224 Total Liabilities $ 3,512,466 $ 3,693,961 Assets held by the CLOs and SASB are restricted and can be used only to settle obligations of the CLOs and SASB, including the subordinate interests owned by us. The liabilities of the CLOs and SASB are non-recourse to us and can only be satisfied from the assets of the CLOs and SASB. We also hold controlling interests in other non-securitization entities that are considered VIEs. The Woodstar Fund, Woodstar Feeder Fund, L.P. and one of the Woodstar Fund’s indirect investees, SPT Dolphin Intermediate LLC (“SPT Dolphin”), the entity which holds the Woodstar II Portfolio, are each VIEs because the third party interest holders do not carry kick-out rights or substantive participating rights. We were deemed to be the primary beneficiary of those VIEs because we possess both the power to direct the activities of the VIEs that most significantly impact their economic performance and a significant economic interest in each entity. The Woodstar Fund had total assets of $2.0 billion, including its indirect investment in SPT Dolphin, and no significant liabilities as of December 31, 2023. As of December 31, 2023, Woodstar Feeder Fund, L.P. and its consolidated subsidiary which is also considered a VIE, Woodstar Feeder REIT, LLC, had a $0.6 billion investment in the Woodstar Fund, had no significant liabilities and had temporary equity of $0.4 billion consisting of the contingently redeemable non-controlling interests of the third party investors (see Note 18). We also hold a 51% controlling interest in a joint venture (the “CMBS JV”) within our Investing and Servicing Segment, which is considered a VIE because the third party interest holder does not carry kick-out rights or substantive participating rights. We are deemed the primary beneficiary of the CMBS JV. This VIE had total assets of $313.3 million and liabilities of $68.6 million as of December 31, 2023. Refer to Note 18 for further discussion. In addition to the above non-securitization entities, we have smaller VIEs with total assets of $47.8 million and liabilities of $10.3 million as of December 31, 2023. VIEs in which we are not the Primary Beneficiary In certain instances, we hold a variable interest in a VIE in the form of CMBS, but either (i) we are not appointed, or do not serve as, special servicer or servicing administrator or (ii) an unrelated third party has the rights to unilaterally remove us as special servicer without cause. In these instances, we do not have the power to direct activities that most significantly impact the VIE’s economic performance. In other cases, the variable interest we hold does not obligate us to absorb losses or provide us with the right to receive benefits from the VIE which could potentially be significant. For these structures, we are not deemed to be the primary beneficiary of the VIE, and we do not consolidate these VIEs. As noted above, we are not obligated to provide, nor have we provided, any financial support for any of our securitization VIEs, whether or not we are deemed to be the primary beneficiary. As such, the risk associated with our involvement in these VIEs is limited to the carrying value of our investment in the entity. As of December 31, 2023, our maximum risk of loss related to securitization VIEs in which we were not the primary beneficiary was $18.6 million on a fair value basis. As of December 31, 2023, the securitization VIEs which we do not consolidate had debt obligations to beneficial interest holders with unpaid principal balances, excluding the notional value of interest-only securities, of $4.3 billion. The corresponding assets are comprised primarily of commercial mortgage loans with unpaid principal balances corresponding to the amounts of the outstanding debt obligations. We also hold passive non-controlling interests in certain unconsolidated entities that are considered VIEs. We are not the primary beneficiaries of these VIEs as we do not possess the power to direct the activities of the VIEs that most significantly impact their economic performance and therefore report our interests, which totaled $0.8 million as of December 31, 2023, within investments in unconsolidated entities on our consolidated balance sheet. Our maximum risk of loss is limited to our carrying value of the investments. |
Related-Party Transactions
Related-Party Transactions | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
Related-Party Transactions | Related-Party Transactions Management Agreement We are party to a management agreement (the “Management Agreement”) with our Manager. Under the Management Agreement, our Manager, subject to the oversight of our board of directors, is required to manage our day to day activities, for which our Manager receives a base management fee and is eligible for an incentive fee and stock awards. Our Manager’s personnel perform certain due diligence, legal, management and other services that outside professionals or consultants would otherwise perform. As such, in accordance with the terms of our Management Agreement, our Manager is paid or reimbursed for the documented costs of performing such tasks, provided that such costs and reimbursements are in amounts no greater than those which would be payable to outside professionals or consultants engaged to perform such services pursuant to agreements negotiated on an arm’s-length basis. Base Management Fee. The base management fee is 1.5% of our stockholders’ equity per annum and calculated and payable quarterly in arrears in cash. For purposes of calculating the management fee, our stockholders’ equity means: (a) the sum of (1) the net proceeds from all issuances of our equity securities since inception and equity securities of subsidiaries issued in exchange for properties (allocated on a pro rata daily basis for such issuances during the fiscal quarter of any such issuance), plus (2) our retained earnings and income to non-controlling interests with respect to equity securities of subsidiaries issued in exchange for properties at the end of the most recently completed calendar quarter (without taking into account any non-cash equity compensation expense incurred in current or prior periods), less (b) any amount that we pay to repurchase our common stock since inception. It also excludes (1) any unrealized gains and losses and other non-cash items that have impacted stockholders’ equity as reported in our financial statements prepared in accordance with GAAP, and (2) one-time events pursuant to changes in GAAP, and certain non-cash items not otherwise described above, in each case after discussions between our Manager and our independent directors and approval by a majority of our independent directors. As a result, our stockholders’ equity, for purposes of calculating the management fee, could be greater or less than the amount of stockholders’ equity shown in our consolidated financial statements. For the years ended December 31, 2023, 2022 and 2021, approximately $87.3 million, $86.7 million and $77.9 million, respectively, was incurred for base management fees. As of December 31, 2023 and 2022, there were $21.9 million and $21.8 million, respectively, of unpaid base management fees included in related-party payable in our consolidated balance sheets. Incentive Fee. Our Manager is entitled to be paid the incentive fee described below with respect to each calendar quarter if (1) our Core Earnings (as defined below) for the previous 12-month period exceeds an 8% threshold, and (2) our Core Earnings for the 12 most recently completed calendar quarters is greater than zero. The incentive fee is an amount, not less than zero, equal to the difference between (1) the product of (x) 20% and (y) the difference between (i) our Core Earnings for the previous 12-month period, and (ii) the product of (A) the weighted average of the issue price per share of our common stock of all of our public offerings and including issue price per equity security of subsidiaries issued in exchange for properties multiplied by the weighted average number of all shares of common stock outstanding (including any RSUs, any RSAs and other shares of common stock underlying awards granted under our equity incentive plans) and equity securities of subsidiaries issued in exchange for properties in such previous 12-month period, and (B) 8%, and (2) the sum of any incentive fee paid to our Manager with respect to the first three calendar quarters of such previous 12-month period. One half of each quarterly installment of the incentive fee is payable in shares of our common stock so long as the ownership of such additional number of shares by our Manager would not violate the 9.8% stock ownership limit set forth in our charter, after giving effect to any waiver from such limit that our board of directors may grant in the future. The remainder of the incentive fee is payable in cash. The number of shares to be issued to our Manager is equal to the dollar amount of the portion of the quarterly installment of the incentive fee payable in shares divided by the average of the closing prices of our common stock on the New York Stock Exchange (“NYSE”) for the five trading days prior to the date on which such quarterly installment is paid. Core Earnings is defined as GAAP net income (loss) excluding non-cash equity compensation expense, the incentive fee, depreciation and amortization of real estate and associated intangibles, acquisition costs associated with successful acquisitions, any unrealized gains, losses or other non-cash items recorded in net income (loss) for the period and, to the extent deducted from net income (loss), distributions payable with respect to equity securities of subsidiaries issued in exchange for properties or interests therein. The amount is adjusted to exclude one-time events pursuant to changes in GAAP and certain other non-cash adjustments as determined by our Manager and approved by a majority of our independent directors. For the years ended December 31, 2023, 2022 and 2021, approximately $35.7 million, $49.6 million and $70.3 million, respectively, was incurred for incentive fees. As of December 31, 2023 and 2022, there were $19.5 million and $14.5 million of unpaid incentive fees included in related-party payable in our consolidated balance sheets. Expense Reimbursement. We are required to reimburse our Manager for operating expenses incurred by our Manager on our behalf. In addition, pursuant to the terms of the Management Agreement, we are required to reimburse our Manager for the cost of legal, tax, consulting, accounting and other similar services rendered for us by our Manager’s personnel provided that such costs are no greater than those that would be payable if the services were provided by an independent third party. The expense reimbursement is not subject to any dollar limitations but is subject to review by our independent directors. For the years ended December 31, 2023, 2022 and 2021, approximately $8.0 million, $8.6 million and $7.1 million, respectively, was incurred for executive compensation and other reimbursable expenses and recognized within general and administrative expenses in our consolidated statements of operations. As of December 31, 2023 and 2022, there was $3.4 million and $4.9 million, respectively, of unpaid reimbursable executive compensation and other expenses included in related-party payable in our consolidated balance sheets. Equity Awards. In certain instances, we issue RSAs to certain employees of affiliates of our Manager who perform services for us. During the years ended December 31, 2023, 2022 and 2021, we granted 226,955, 200,972 and 1,013,232 RSAs, respectively, at grant date fair values of $4.3 million, $4.8 million and $20.3 million, respectively. Expenses related to the vesting of awards to employees of affiliates of our Manager were $8.7 million, $8.9 million and $9.7 million during the years ended December 31, 2023, 2022 and 2021, respectively, and are reflected in general and administrative expenses in our consolidated statements of operations. These shares generally vest over a three-year period. Compensation expense related to the ESPP (refer to Note 18) for employees of affiliates of our Manager was not material during the year ended December 31, 2023, and is reflected in general and administrative expenses in our consolidated statement of operations. Termination Fee. We can terminate the Management Agreement without cause, as defined in the Management Agreement, with an affirmative two-thirds vote by our independent directors and 180 days written notice to our Manager. Upon termination without cause, our Manager is due a termination fee equal to three times the sum of the average annual base management fee and incentive fee earned by our Manager over the preceding eight calendar quarters. No termination fee is payable if our Manager is terminated for cause, as defined in the Management Agreement, which can be done at any time with 30 days written notice from our board of directors. Manager Equity Plan In April 2022, the Company’s shareholders approved the Starwood Property Trust, Inc. 2022 Manager Equity Plan (the “2022 Manager Equity Plan”) which replaces the Starwood Property Trust, Inc. 2017 Manager Equity Plan (the “2017 Manager Equity Plan”). In November 2022, we granted 1,500,000 RSUs to our Manager under the 2022 Manager Equity Plan. In November 2020, we granted 1,800,000 RSUs to our Manager under the 2017 Manager Equity Plan. In September 2019, we granted 1,200,000 RSUs to our Manager under the 2017 Manager Equity Plan. In April 2018, we granted 775,000 RSUs to our Manager under the 2017 Manager Equity Plan. In connection with these grants and prior similar grants, we recognized share-based compensation expense of $18.0 million, $18.7 million and $19.4 million within management fees in our consolidated statements of operations for the years ended December 31, 2023, 2022 and 2021, respectively. Refer to Note 18 for further discussion. Investments in Loans and Securities During the years ended December 31, 2022 and 2021, we acquired $1.1 billion and $1.2 billion, respectively, of loans from a residential mortgage originator in which we held an equity interest. During the year ended December 31, 2023, we entered into a stock transfer, termination and release agreement in which we sold the entirety of our equity interest to a third party. No loans were acquired from this entity during the year ended December 31, 2023. Refer to Note 9 for further discussion. During the years ended December 31, 2022 and 2021 the Company received proceeds of $4.4 million and $3.5 million, respectively, from the sale of loans to the residential mortgage originator. There were no sales of loans to this entity during the year ended December 31, 2023. In August 2023 , we received a $29.4 million final repayment on a $339.2 million first mortgage and mezzanine loan that was originated in August 2017 related to an office campus located in Irvine, California. An affiliate of our Manager has a non-controlling equity interest in the borrower. In March 2022, we originated a new loan on the development and recapitalization of luxury rental cabins with a total commitment of $200.0 million, of which $148.5 million was outstanding as of December 31, 2023. The loan bears interest at SOFR + 6.50% plus fees and has a term of 24 months with three one-year extension options. Certain members of our executive team and board of directors own equity interests in the borrower. In July 2023, we agreed to a 10-month 300 bps interest payment deferral, which during the year ended December 31, 2023 amounted to $2.3 million. In July 2021, a €55.0 million loan participation acquired in March 2018 from SEREF, which was secured by a luxury resort in Estepona, Spain, was paid in full. In February 2019, we acquired a $60.0 million participation in a $925.0 million first priority infrastructure term loan. In April 2019 and July 2019, we acquired participations of $5.0 million and $16.0 million, respectively, in a $350.0 million upsize to the term loan. The loan is secured by four domestic natural gas power plants. An affiliate of our Manager, Starwood Energy Group (which became Lotus Infrastructure Partners effective January 1, 2023), is the borrower under the term loan. As of December 31, 2023, the outstanding participation balance in this term loan was $60.7 million. In January 2018, we acquired a $130.0 million first mortgage participation from an unaffiliated third party. The loan is secured by three U.S. power plants that each have long-term power purchase agreements with investment grade counterparties. The borrower is an affiliate of our Manager. In March 2022, the loan was paid off in full. In December 2012, we acquired 9,140,000 ordinary shares in SEREF, a debt fund that is externally managed by an affiliate of our Manager and is listed on the London Stock Exchange, for approximately $14.7 million, which equated to approximately 4% ownership of SEREF. During the year ended December 31, 2023, 1,892,313 shares were redeemed by SEREF, for proceeds of $2.5 million, leaving 7,247,687 held as of December 31, 2023. Prior to that, there were no share redemptions by SEREF. As of December 31, 2023, our shares represent an approximate 2% interest in SEREF. Refer to Note 6 for additional details. We co-originate, along with certain investment funds affiliated with our Manager, various foreign currency denominated loans to third party borrowers in which each lender holds a separate portion of the loan. The loans are independently underwritten and legally separate, and the transaction is directly between us and the third party borrower. As a result, we do not consider these to be related party transactions. Investments in Unconsolidated Entities In April 2013, in connection with our acquisition of LNR, we acquired 50% of a joint venture which owns equity in an online real estate company. An affiliate of our Manager, Starwood Distressed Opportunity Fund IX owns the remaining 50% of the venture. Lease Arrangements In March 2020, we entered into an office lease agreement with an entity which is controlled by our Chairman and CEO through majority equity ownership of the entity. The leased premises serve as our new Miami Beach office following the expiration of our former lease in Miami Beach. The lease, as amended in September 2022, is for 64,424 square feet of office space, commenced July 1, 2022 and has an initial term of 15 years from the monthly lease payment commencement date of November 1, 2022. The lease payments are based on an annual base rate of $52.00 per square foot that increases by 3% each November, plus our pro rata share of building operating expenses. Prior to the execution of this lease, we engaged an independent third party leasing firm and external counsel to advise the independent directors of our board of directors on market terms for the lease. The terms of the lease and subsequent amendment were approved by our independent directors. In April 2020 we provided a $1.9 million cash security deposit to the landlord. During the years ended December 31, 2023 and 2022, we made payments to the landlord under the terms of the lease of $1.3 million and $4.4 million, respectively, for reimbursements relating to tenant improvements and $6.6 million and $1.1 million, respectively, for rent, parking and our pro rata share of building operating expenses. During the years ended December 31, 2023 and 2022, we recognized $7.2 million and $2.7 million, respectively, of expenses with respect to this lease within general and administrative expenses in our consolidated statement of operations. Upon the July 1, 2022 commencement of the lease, we recorded a $29.8 million right-of-use asset and corresponding lease liability within “Other assets” and “Accounts payable, accrued expenses and other liabilities,” respectively, on our consolidated balance sheet representing the present value of the minimum required lease payments over the term of the lease. In December 2021, we entered into a sublease with SH Group Hotels & Residences U.S., L.L.C. (“SH Group”), an affiliate of our Manager, for office space in Los Angeles, California. The sublease commenced December 20, 2021. The sublease was for approximately 5,500 square feet of office space, had an initial term of 4.5 years, and required monthly lease payments based on an annual base rate of $59.16 per square foot that increased by 3% annually in April, which is equal to that specified in the original lease between the affiliate and the third party landlord. In November 2022, the sublease was terminated and the original lease was assigned to us by SH Group with the landlord's consent. Acquisitions from Consolidated CMBS Trusts Our Investing and Servicing Segment acquires interests in properties for its REIS Equity Portfolio and also loans from CMBS trusts, some of which are consolidated as VIEs on our balance sheet. Acquisitions from consolidated VIEs are reflected as repayment of debt of consolidated VIEs in our consolidated statements of cash flows. During the year ended December 31, 2021, we acquired a $9.2 million nonperforming loan on a hospitality asset in New York from a consolidated CMBS trust for a total gross purchase price of $10.1 million, including accrued interest. There were no assets acquired from consolidated CMBS trusts during the years ended December 31, 2023 and 2022. Acquisitions from Consolidated RMBS Trusts When our Commercial and Residential Lending Segment exercises an optional redemption right in a securitization VIE, it unwinds the securitization structure and acquires the underlying loans from the VIE. Acquisitions of loans from consolidated VIEs are reflected as repayment of debt of consolidated VIEs in our consolidated statements of cash flows. During the year ended December 31, 2021, we acquired $524.5 million of residential loans from consolidated RMBS trusts at their par amounts. No loans were acquired from consolidated RMBS trusts during the years ended December 31, 2023 and 2022. Refer to Note 13 for further discussion of these acquisitions. Other Related-Party Arrangements During the year ended December 31, 2016, we established a co-investment fund which provides key personnel with the opportunity to invest in certain properties included in our REIS Equity Portfolio. These personnel include certain of our employees as well as employees of affiliates of our Manager (collectively, “Fund Participants”). The fund carries an aggregate commitment of $15.0 million and owns a 10% equity interest in certain REIS Equity Portfolio properties acquired subsequent to January 1, 2015. As of December 31, 2023, Fund Participants have funded $4.9 million of the capital commitment, and it is our current expectation that there will be no additional funding of the commitment. The capital contributed by Fund Participants is reflected on our consolidated balance sheets as non-controlling interests in consolidated subsidiaries. In an effort to retain key personnel, the fund provides for disproportionate distributions which allows Fund Participants to earn an incremental 60% on all operating cash flows attributable to their capital account, net of a 5% preferred return to us as general partner of the fund. Amounts earned by Fund Participants pursuant to this waterfall are reflected within net income attributable to non-controlling interests in our consolidated statements of operations. During both the years ended December 31, 2023 and 2022, the non-controlling interests related to this fund received cash distributions of $1.9 million. During the year ended December 31, 2021, the non-controlling interests related to this fund received cash distributions of $0.2 million. Highmark Residential (“Highmark”), an affiliate of our Manager, provides property management services for properties within our Woodstar I and Woodstar II Portfolios. Fees paid to Highmark are calculated as a percentage of gross receipts and are at market terms. During the years ended December 31, 2023, 2022 and 2021, property management fees to Highmark of $6.0 million, $5.6 million and $4.2 million, respectively, were recognized within our Woodstar Portfolios. |
Stockholders' Equity and Non-Co
Stockholders' Equity and Non-Controlling Interests | 12 Months Ended |
Dec. 31, 2023 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity and Non-Controlling Interests | Stockholders’ Equity and Non-Controlling Interests The Company’s authorized capital stock consists of 100,000,000 shares of preferred stock, $0.01 par value per share, and 500,000,000 shares of common stock, $0.01 par value per share. ATM Agreement In May 2022, we entered into a Starwood Property Trust, Inc. Common Stock Sales Agreement (the “ATM Agreement”) with a syndicate of financial institutions to sell shares of the Company’s common stock of up to $500.0 million from time to time, through an “at the market” equity offering program. Sales of shares under the ATM Agreement are made by means of ordinary brokers’ transactions on the New York Stock Exchange or otherwise at market prices prevailing at the time of sale or at negotiated prices. The ATM Agreement replaces a similar agreement previously entered into in May 2014 with a financial institution. There were no shares issued under the ATM Agreement during the year ended December 31, 2023. During the year ended December 31, 2022, we issued 2,168,710 shares of common stock under our ATM Agreement for gross proceeds of $49.3 million at an average share price of $22.72 and paid related commission costs of $1.0 million. During the year ended December 31, 2021, there were no shares issued under our previous ATM agreement. Dividend Reinvestment and Direct Stock Purchase Plan In May 2014, we established the Starwood Property Trust, Inc. Dividend Reinvestment and Direct Stock Purchase Plan (the “DRIP Plan”), which provides stockholders with a means of purchasing additional shares of our common stock by reinvesting the cash dividends paid on our common stock and by making additional optional cash purchases. Shares of our common stock purchased under the DRIP Plan will either be issued directly by the Company or purchased in the open market by the plan administrator. The Company may issue up to 11.0 million shares of common stock under the DRIP Plan. During the years ended December 31, 2023, 2022 and 2021, shares issued under the DRIP Plan were not material. Employee Stock Purchase Plan In April 2022, the Company’s shareholders approved the ESPP which allows eligible employees to purchase common stock of the Company at a discounted purchase price. The discounted purchase price of a share of the Company's common stock is 85% of the fair market value (closing market price) at the lower of the beginning or the end of the quarterly offering period. Participants may purchase shares not exceeding an aggregate fair market value of $25,000 in any calendar year. The maximum aggregate number of shares subject to issuance in accordance with the ESPP is 2,000,000 shares. During the years ended December 31, 2023 and 2022, 123,327 and 67,965 shares, respectively, of common stock were purchased by participants at a weighted average discounted purchase price of $15.46 and $17.36 per share, respectively. As of December 31, 2023, there were 1.8 million shares of common stock available for future issuance through the ESPP. Other Share Issuances In December 2021, we issued 16.0 million shares of common stock in a public offering at a price of $24.57 per share, receiving proceeds of $393.1 million. Dividends Our board of directors declared the following dividends during the years ended December 31, 2023, 2022 and 2021: Declaration Date Record Date Ex-Dividend Date Payment Date Amount Frequency 12/15/23 12/29/23 12/28/23 1/15/24 $ 0.48 Quarterly 9/15/23 9/30/23 9/29/23 10/16/23 0.48 Quarterly 6/15/23 6/30/23 6/29/23 7/17/23 0.48 Quarterly 3/16/23 3/31/23 3/30/23 4/14/23 0.48 Quarterly 12/9/22 12/30/22 12/29/22 1/13/23 0.48 Quarterly 9/16/22 9/30/22 9/29/22 10/14/22 0.48 Quarterly 6/15/22 6/30/22 6/29/22 7/15/22 0.48 Quarterly 3/14/22 3/31/22 3/30/22 4/15/22 0.48 Quarterly 12/15/21 12/31/21 12/30/21 1/14/22 0.48 Quarterly 9/15/21 9/30/21 9/29/21 10/15/21 0.48 Quarterly 6/14/21 6/30/21 6/29/21 7/15/21 0.48 Quarterly 3/11/21 3/31/21 3/30/21 4/15/21 0.48 Quarterly Equity Incentive Plans In April 2022, the Company’s shareholders approved the 2022 Manager Equity Plan and the Starwood Property Trust, Inc. 2022 Equity Plan (the “2022 Equity Plan”), which allow for the issuance of up to 18,700,000 stock options, stock appreciation rights, RSAs, RSUs or other equity-based awards or any combination thereof to the Manager, directors, employees, consultants or any other party providing services to the Company. The 2022 Manager Equity Plan succeeds and replaces the 2017 Manager Equity Plan and the 2022 Equity Plan succeeds and replaces the Starwood Property Trust, Inc. 2017 Equity Plan (the “2017 Equity Plan”). As of December 31, 2023, 16,510,282 share awards were available to be issued under either the 2022 Manager Equity Plan or the 2022 Equity Plan, determined on a combined basis. To date, we have only granted RSAs and RSUs under the equity incentive plans. The holders of awards of RSAs or RSUs are entitled to receive dividends or “distribution equivalents” beginning on either the award’s effective date or vest date, depending on the terms of the award. The table below summarizes our share awards granted or vested under the 2017 and 2022 Manager Equity Plans during the years ended December 31, 2023, 2022 and 2021 (dollar amounts in thousands): Grant Date Type Amount Granted Grant Date Fair Value Vesting Period November 2022 RSU 1,500,000 $ 31,605 3 years November 2020 RSU 1,800,000 30,078 3 years September 2019 RSU 1,200,000 29,484 (1) April 2018 RSU 775,000 16,329 3 years ______________________________________________________________________________________________________________________ (1) Of the amount granted, 218,898 vested immediately on the grant date and the remaining amount vests over a three-year period. During the years ended December 31, 2023, 2022 and 2021, we granted 914,694, 829,805, and 1,708,935 RSAs, respectively, under the 2017 and 2022 Equity Plans to a select group of eligible participants which includes our employees, directors and employees of our Manager who perform services for us. The awards were granted based on the market price of the Company’s common stock on the respective grant date and generally vest over a three-year period. Expenses related to the vesting of these awards are reflected in general and administrative expenses in our consolidated statements of operations. The following shares of common stock were issued, without restriction, to our Manager as part of the incentive compensation due under the Management Agreement during the years ended December 31, 2023, 2022 and 2021: Timing of Issuance Shares of Common Stock Issued Price per share August 2023 92,640 20.59 May 2023 377,207 16.39 March 2023 373,204 19.38 November 2022 21,390 20.92 August 2022 108,374 23.94 May 2022 647,128 22.69 February 2022 1,068,828 23.78 November 2021 18,649 26.08 August 2021 97,151 25.79 May 2021 267,378 24.54 February 2021 332,002 22.55 The following table summarizes our share-based compensation expenses during the years ended December 31, 2023, 2022 and 2021 (in thousands): For the Year Ended December 31, 2023 2022 2021 Management fees: Manager incentive fee $ 13,703 $ 24,903 $ 35,135 Manager Equity Plans (1) 18,027 18,693 19,448 31,730 43,596 54,583 General and administrative: Equity Plans (1) 20,761 21,219 19,838 ESPP 459 273 — 21,219 21,492 19,838 Total share-based compensation expense (2) $ 52,949 $ 65,089 $ 74,421 __________________________________________ (1) Share-based compensation expense relating to the 2017 and 2022 Manager Equity Plans is reflected within the Manager Equity Plans line. Share-based compensation expense relating to the 2017 and 2022 Equity Plans is reflected within the Equity Plans line. (2) The income tax benefit associated with the share-based compensation expense for the years ended December 31, 2023, 2022 and 2021 was not material. Schedule of Non-Vested Shares and Share Equivalents (1) Equity Plan Manager Total Weighted Average Balance as of January 1, 2023 2,513,847 1,825,000 4,338,847 $ 20.65 Granted 914,694 — 914,694 18.93 Vested (687,743) (950,000) (1,637,743) 18.56 Forfeited (169,070) — (169,070) 22.76 Balance as of December 31, 2023 2,571,728 875,000 3,446,728 21.08 __________________________________________ (1) Equity-based award activity for awards granted under the 2017 and 2022 Equity Plans is reflected within the Equity Plan column, and for awards granted under the 2017 and 2022 Manager Equity Plans, within the Manager Equity Plan column. The weighted average grant date fair value per share of grants during the years ended December 31, 2023, 2022 and 2021 was $18.93, $21.95 and $22.14, respectively. Vesting Schedule Equity Manager Plan Equity Plan Total 2024 1,674,540 500,000 2,174,540 2025 583,200 375,000 958,200 2026 313,988 — 313,988 Total 2,571,728 875,000 3,446,728 As of December 31, 2023, there was approximately $37.4 million of total unrecognized compensation costs related to unvested share-based compensation arrangements which are expected to be recognized over a weighted average period of 1.7 years. The total fair value of shares vested during the years ended December 31, 2023, 2022 and 2021 were $30.3 million, $30.0 million and $32.4 million, respectively, as of the respective vesting dates. Non-Controlling Interests in Consolidated Subsidiaries As discussed in Note 2, on November 5, 2021 we sold a 20.6% non-controlling interest in the Woodstar Fund to third party investors for net cash proceeds of $214.2 million. Under the Woodstar Fund operating agreement, such interests are contingently redeemable by us, at the option of the interest holder, for cash at liquidation fair value if any assets remain upon termination of the Woodstar Fund. The Woodstar Fund operating agreement specifies an eight-year term with two one-year extension options, the first at our option and the second subject to consent of an advisory committee representing the non-controlling interest holders. Accordingly, these contingently redeemable non-controlling interests have been classified as “Temporary Equity” in our consolidated balance sheets and represent the fair value of the Woodstar Fund’s net assets allocable to those interests. During the years ended December 31, 2023 and 2022, net income attributable to these non-controlling interests was $58.4 million and $153.8 million, respectively. During the period from November 5, 2021 through December 31, 2021, net income attributable to these non-controlling interests was $0.7 million. In connection with our Woodstar II Portfolio acquisitions, we issued 10.2 million Class A Units in our subsidiary, SPT Dolphin, and rights to receive an additional 1.9 million Class A Units if certain contingent events occur. As of December 31, 2023, all of the 1.9 million contingent Class A Units were issued. The Class A Units are redeemable for consideration equal to the current share price of the Company’s common stock on a one-for-one basis, with the consideration paid in either cash or the Company’s common stock, at the determination of the Company. During the year ended December 31, 2021, redemptions of 0.9 million of the Class A Units were received and settled in common stock. During the year ended December 31, 2022, no redemptions of Class A Units were received. During the year ended December 31, 2023, redemptions of 0.1 million of the Class A Units were received and settled for $1.3 million in cash, leaving 9.7 million Class A Units outstanding as of December 31, 2023. The outstanding Class A Units are reflected as non-controlling interests in consolidated subsidiaries on our consolidated balance sheets, the balance of which was $207.1 million and $208.5 million as of December 31, 2023 and 2022. To the extent SPT Dolphin has sufficient cash available, the Class A Units earn a preferred return indexed to the dividend rate of the Company’s common stock. Any distributions made pursuant to this waterfall are recognized within net income attributable to non-controlling interests in our consolidated statements of operations. During the years ended December 31, 2023, 2022 and 2021, we recognized net income attributable to non-controlling interests of $18.7 million, $18.8 million and $19.4 million, respectively, associated with these Class A Units. |
Earnings per Share
Earnings per Share | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Earnings per Share The following table provides a reconciliation of net income and the number of shares of common stock used in the computation of basic EPS and diluted EPS (amounts in thousands, except per share amounts): For the Year Ended December 31, 2023 2022 2021 Basic Earnings Income attributable to STWD common stockholders $ 339,213 $ 871,475 $ 447,739 Less: Income attributable to participating shares not already deducted as non-controlling interests (6,412) (17,113) (6,808) Basic earnings $ 332,801 $ 854,362 $ 440,931 Diluted Earnings Income attributable to STWD common stockholders $ 339,213 $ 871,475 $ 447,739 Less: Income attributable to participating shares not already deducted as non-controlling interests (6,412) (17,113) (6,808) Add: Interest expense on Convertible Notes * 11,632 11,619 Add: Undistributed earnings to participating shares — 11,229 — Less: Undistributed earnings reallocated to participating shares — (10,880) — Diluted earnings $ 332,801 $ 866,343 $ 452,550 Number of Shares: Basic — Average shares outstanding 309,771 305,524 285,942 Effect of dilutive securities — Convertible Notes * 9,649 9,649 Effect of dilutive securities — Contingently issuable shares 450 386 1,037 Effect of dilutive securities — Unvested non-participating shares 286 169 198 Diluted — Average shares outstanding 310,507 315,728 296,826 Earnings Per Share Attributable to STWD Common Stockholders: Basic $ 1.07 $ 2.80 $ 1.54 Diluted $ 1.07 $ 2.74 $ 1.52 ______________________________________________________________________________________________________________________ * Our Convertible Notes were not dilutive for the year ended December 31, 2023. As of December 31, 2023, 2022 and 2021, participating shares of 12.7 million, 13.7 million and 13.0 million, respectively, were excluded from the computation of diluted shares as their effect was already considered under the more dilutive two-class method used above. Such participating shares at December 31, 2023, 2022 and 2021 included 9.7 million, 9.8 million and 9.8 million potential shares, respectively, of our common stock issuable upon redemption of the Class A Units in SPT Dolphin, as discussed in Note 18. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 12 Months Ended |
Dec. 31, 2023 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income The changes in AOCI by component are as follows (amounts in thousands): Cumulative Foreign Total Balance at January 1, 2021 $ 44,057 $ (64) $ 43,993 OCI before reclassifications (3,101) — (3,101) Amounts reclassified from AOCI (3) 64 61 Net period OCI (3,104) 64 (3,040) Balance at December 31, 2021 40,953 — 40,953 OCI before reclassifications (19,998) — (19,998) Amounts reclassified from AOCI — — — Net period OCI (19,998) — (19,998) Balance at December 31, 2022 20,955 — 20,955 OCI before reclassifications (5,648) — (5,648) Amounts reclassified from AOCI 45 — 45 Net period OCI (5,603) — (5,603) Balance at December 31, 2023 $ 15,352 $ — $ 15,352 The reclassifications out of AOCI impacted the consolidated statements of operations for the years ended December 31, 2023, 2022 and 2021 as follows (amounts in thousands): Amounts Reclassified from AOCI during the Year Affected Line Item Ended December 31, in the Statements Details about AOCI Components 2023 2022 2021 of Operations Unrealized (loss) gain on available-for-sale securities: Net realized loss on sale of investment $ (45) $ — $ — Gain on sale of investments and other assets, net Interest realized upon collection — — 3 Interest income from investment securities Total (45) — 3 Foreign currency translation: Foreign currency adjustment — — (64) Gain on sale of investments and other assets, net Total reclassifications for the period $ (45) $ — $ (61) |
Fair Value
Fair Value | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Fair Value GAAP establishes a hierarchy of valuation techniques based on the observability of inputs utilized in measuring financial assets and liabilities at fair value. GAAP establishes market-based or observable inputs as the preferred source of values, followed by valuation models using management assumptions in the absence of market inputs. The three levels of the hierarchy are described below: Level I —Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date. Level II —Inputs (other than quoted prices included in Level I) are either directly or indirectly observable for the asset or liability through correlation with market data at the measurement date and for the duration of the instrument’s anticipated life. Level III —Inputs reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. Consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs to the model. Valuation Process We have valuation control processes in place to validate the fair value of the Company’s financial assets and liabilities measured at fair value including those derived from pricing models. These control processes are designed to assure that the values used for financial reporting are based on observable inputs wherever possible. In the event that observable inputs are not available, the control processes are designed to assure that the valuation approach utilized is appropriate and consistently applied and the assumptions are reasonable. Pricing Verification —We use recently executed transactions, other observable market data such as exchange data, broker/dealer quotes, third party pricing vendors and aggregation services for validating the fair values generated using valuation models. Pricing data provided by approved external sources is evaluated using a number of approaches; for example, by corroborating the external sources’ prices to executed trades, analyzing the methodology and assumptions used by the external source to generate a price and/or by evaluating how active the third party pricing source (or originating sources used by the third party pricing source) is in the market. Unobservable Inputs —Where inputs are not observable, we review the appropriateness of the proposed valuation methodology to ensure it is consistent with how a market participant would arrive at the unobservable input. The valuation methodologies utilized in the absence of observable inputs may include extrapolation techniques and the use of comparable observable inputs. Any changes to the valuation methodology will be reviewed by our management to ensure the changes are appropriate. The methods used may produce a fair value calculation that is not indicative of net realizable value or reflective of future fair values. Furthermore, while we anticipate that our valuation methods are appropriate and consistent with other market participants, the use of different methodologies, or assumptions, to determine the fair value could result in a different estimate of fair value at the reporting date. Fair Value on a Recurring Basis We determine the fair value of our financial assets and liabilities measured at fair value on a recurring basis as follows: Loans held-for-sale, commercial We measure the fair value of our commercial mortgage loans held-for-sale using a discounted cash flow analysis unless observable market data (i.e., securitized pricing) is available. A discounted cash flow analysis requires management to make estimates regarding future interest rates and credit spreads. The most significant of these inputs relates to credit spreads and is unobservable. Thus, we have determined that the fair values of mortgage loans valued using a discounted cash flow analysis should be classified in Level III of the fair value hierarchy, while mortgage loans valued using securitized pricing should be classified in Level II of the fair value hierarchy. Mortgage loans classified in Level III are transferred to Level II if securitized pricing becomes available. Loans held-for-sale, residential We measure the fair value of our residential loans held-for-sale based on the net present value of expected future cash flows using a combination of observable and unobservable inputs. Observable market participant assumptions include pricing related to trades of residential loans with similar characteristics. Unobservable inputs include the expectation of future cash flows, which involves judgments about the underlying collateral, the creditworthiness of the borrower, estimated prepayment speeds, estimated future credit losses, forward interest rates, investor yield requirements and certain other factors. At each measurement date, we consider both the observable and unobservable valuation inputs in the determination of fair value. However, given the significance of the unobservable inputs, these loans have been classified within Level III. RMBS RMBS are valued utilizing observable and unobservable market inputs. The observable market inputs include recent transactions, broker quotes and vendor prices (“market data”). However, given the implied price dispersion amongst the market data, the fair value determination for RMBS has also utilized significant unobservable inputs in discounted cash flow models including prepayments, default and severity estimates based on the recent performance of the collateral, the underlying collateral characteristics, industry trends, as well as expectations of macroeconomic events (e.g., housing price curves, interest rate curves, etc.). At each measurement date, we consider both the observable and unobservable valuation inputs in the determination of fair value. However, given the significance of the unobservable inputs these securities have been classified within Level III. CMBS CMBS are valued utilizing both observable and unobservable market inputs. These factors include projected future cash flows, ratings, subordination levels, vintage, remaining lives, credit issues, recent trades of similar securities and the spreads used in the prior valuation. We obtain current market spread information where available and use this information in evaluating and validating the market price of all CMBS. Depending upon the significance of the fair value inputs used in determining these fair values, these securities are classified in either Level II or Level III of the fair value hierarchy. CMBS may shift between Level II and Level III of the fair value hierarchy if the significant fair value inputs used to price the CMBS become or cease to be observable. Equity security The equity security is publicly registered and traded in the U.S. and its market price is listed on the London Stock Exchange. The security has been classified within Level I. Woodstar Fund Investments The fair value of investments held by the Woodstar Fund is determined based on observable and unobservable market inputs. The initial fair value of the Woodstar Fund’s investments at its November 5, 2021 establishment date was determined by reference to the purchase price paid by third party investors, which was consistent with both a recent external appraisal as well as our extensive marketing efforts to sell interests in the Woodstar Fund, plus working capital. The fair value of the Woodstar Fund’s investments as of December 31, 2022 and 2023 was determined by reference to an external appraisal as of those dates. For the properties, the third party appraisals applied the income capitalization approach with corroborative support from the sales comparison approach. The cost approach was not employed, as it is typically not emphasized by potential investors in the multifamily affordable housing sector. The income capitalization approach estimates an income stream for a property over a 10-year period and discounts this income plus a reversion (presumed sale) into a present value at a risk adjusted discount rate. Terminal capitalization rates and discount rates utilized in this approach are derived from market transactions as well as other financial and industry data. For secured financing, the third party appraisal discounted the contractual cash flows at the interest rate at which such arrangements would bear if executed in the current market. The fair value of investment level working capital is assumed to approximate carrying value due to its primarily short-term monetary nature. The fair value of interest rate derivatives is determined using the methodology described in the Derivatives discussion below. Given the significance of the unobservable inputs used in the respective valuations, the Woodstar Fund’s investments have been classified within Level III of the fair value hierarchy. Domestic servicing rights The fair value of this intangible is determined using discounted cash flow modeling techniques which require management to make estimates regarding future net servicing cash flows, including forecasted loan defeasance, control migration, delinquency and anticipated maturity defaults which are calculated assuming a debt yield at which default occurs. Since the most significant of these inputs are unobservable, we have determined that the fair values of this intangible in its entirety should be classified in Level III of the fair value hierarchy. Derivatives The valuation of derivative contracts are determined using widely accepted valuation techniques including discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market based inputs, including interest rate curves, spot and market forward points and implied volatilities. The fair values of interest rate swaps are determined using the market standard methodology of netting the discounted future fixed cash payments and the discounted expected variable cash receipts. The variable cash receipts are based on an expectation of future interest rates (forward curves) derived from observable market interest rate curves. We incorporate credit valuation adjustments to appropriately reflect both our own non-performance risk and the respective counterparty’s non-performance risk in the fair value measurements. In adjusting the fair value of our derivative contracts for the effect of non-performance risk, we have considered the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts, and guarantees. The valuation of over the counter derivatives are determined using discounted cash flows based on Overnight Index Swap (“OIS”) rates. Fully collateralized trades are discounted using OIS with no additional economic adjustments to arrive at fair value. Uncollateralized or partially collateralized trades are also discounted at OIS, but include appropriate economic adjustments for funding costs (i.e., a LIBOR or SOFR OIS basis adjustment to approximate uncollateralized cost of funds) and credit risk. For credit instruments, fair value is determined based on changes in the relevant indices from the date of initiation of the instrument to the reporting date, as these changes determine the amount of any future cash settlement between us and the counterparty. These indices are considered Level II inputs as they are directly observable. Although we have determined that the majority of the inputs used to value our derivatives fall within Level II of the fair value hierarchy, the credit valuation adjustments associated with our derivatives utilize Level III inputs, such as estimates of current credit spreads to evaluate the likelihood of default by us and our counterparties. However, as of December 31, 2023 and 2022, we have assessed the significance of the impact of the credit valuation adjustments on the overall valuation of our derivative positions and have determined that the credit valuation adjustments are not significant to the overall valuation of our derivatives. As a result, we have determined that our derivative valuations in their entirety are classified in Level II of the fair value hierarchy. Liabilities of consolidated VIEs Our consolidated VIE liabilities generally represent bonds that are not owned by us. The majority of these are either traded in the marketplace or can be analogized to similar securities that are traded in the marketplace. For these liabilities, pricing is considered to be Level II, where the valuation is based upon quoted prices for similar instruments traded in active markets. We generally utilize third party pricing service providers for valuing these liabilities. In order to determine whether to utilize the valuations provided by third parties, we conduct an ongoing evaluation of their valuation methodologies and processes, as well as a review of the individual valuations themselves. In evaluating third party pricing for reasonableness, we consider a variety of factors, including market transaction information for the particular bond, market transaction information for bonds within the same trust, market transaction information for similar bonds, the bond’s ratings and the bond’s subordination levels. For the minority portion of our consolidated VIE liabilities which consist of unrated or non-investment grade bonds that are not owned by us, pricing may be either Level II or Level III. If independent third party pricing similar to that noted above is available, we consider the valuation to be Level II. If such third party pricing is not available, the valuation is generated from model-based techniques that use significant unobservable assumptions, and we consider the valuation to be Level III. For VIE liabilities classified as Level III, valuation is determined based on discounted expected future cash flows which take into consideration expected duration and yields based on market transaction information, ratings, subordination levels, vintage and current market spread. VIE liabilities may shift between Level II and Level III of the fair value hierarchy if the significant fair value inputs used to price the VIE liabilities become or cease to be observable. Assets of consolidated VIEs The securitization VIEs in which we invest are “static”; that is, no reinvestment is permitted, and there is no active management of the underlying assets. In determining the fair value of the assets of the VIE, we maximize the use of observable inputs over unobservable inputs. The individual assets of a VIE are inherently incapable of precise measurement given their illiquid nature and the limitations on available information related to these assets. Because our methodology for valuing these assets does not value the individual assets of a VIE, but rather uses the value of the VIE liabilities as an indicator of the fair value of VIE assets as a whole, we have determined that our valuations of VIE assets in their entirety should be classified in Level III of the fair value hierarchy. Fair Value Only Disclosed We determine the fair value of our financial instruments and assets where fair value is disclosed as follows: Loans held-for-investment We estimate the fair values of our loans not carried at fair value on a recurring basis by discounting their expected cash flows at a rate we estimate would be demanded by the market participants that are most likely to buy our loans. The expected cash flows used are generally the same as those used to calculate our level yield income in the financial statements. Since these inputs are unobservable, we have determined that the fair value of these loans in their entirety would be classified in Level III of the fair value hierarchy. HTM debt securities We estimate the fair value of our mandatorily redeemable preferred equity interests in commercial real estate companies and infrastructure bonds using the same methodology described for our loans held-for-investment. We estimate the fair value of our HTM CMBS using the same methodology described for our CMBS carried at fair value on a recurring basis. Secured financing agreements, CLOs and SASB The fair value of the secured financing agreements, CLOs and SASB are determined by discounting the contractual cash flows at the interest rate we estimate such arrangements would bear if executed in the current market. We have determined that our valuation of these instruments should be classified in Level III of the fair value hierarchy. Unsecured senior notes The fair value of our unsecured senior notes is determined based on the last available bid price for the respective notes in the current market. As these prices represent observable market data, we have determined that the fair value of these instruments would be classified in Level II of the fair value hierarchy. Fair Value Disclosures The following tables present our financial assets and liabilities carried at fair value on a recurring basis in the consolidated balance sheets by their level in the fair value hierarchy as of December 31, 2023 and 2022 (amounts in thousands): December 31, 2023 Total Level I Level II Level III Financial Assets: Loans under fair value option $ 2,645,637 $ — $ — $ 2,645,637 RMBS 102,368 — — 102,368 CMBS 18,600 — — 18,600 Equity security 8,340 8,340 — — Woodstar Fund investments 2,012,833 — — 2,012,833 Domestic servicing rights 19,384 — — 19,384 Derivative assets 63,437 — 63,437 — VIE assets 43,786,356 — — 43,786,356 Total $ 48,656,955 $ 8,340 $ 63,437 $ 48,585,178 Financial Liabilities: Derivative liabilities $ 102,467 $ — $ 102,467 $ — VIE liabilities 42,175,734 — 36,570,938 5,604,796 Total $ 42,278,201 $ — $ 36,673,405 $ 5,604,796 December 31, 2022 Total Level I Level II Level III Financial Assets: Loans under fair value option $ 2,784,594 $ — $ — $ 2,784,594 RMBS 113,386 — — 113,386 CMBS 19,108 — — 19,108 Equity security 9,840 9,840 — — Woodstar Fund investments 1,761,002 — — 1,761,002 Domestic servicing rights 17,790 — — 17,790 Derivative assets 108,621 — 108,621 — VIE assets 52,453,041 — — 52,453,041 Total $ 57,267,382 $ 9,840 $ 108,621 $ 57,148,921 Financial Liabilities: Derivative liabilities $ 91,404 $ — $ 91,404 $ — VIE liabilities 50,754,355 — 45,248,412 5,505,943 Total $ 50,845,759 $ — $ 45,339,816 $ 5,505,943 The changes in financial assets and liabilities classified as Level III are as follows for the years ended December 31, 2023 and 2022 (amounts in thousands): Loans at RMBS CMBS Woodstar Fund Investments Domestic VIE Assets VIE Total January 1, 2022 balance $ 2,936,025 $ 143,980 $ 22,244 $ 1,040,309 $ 16,780 $ 61,280,543 $ (4,780,221) $ 60,659,660 Total realized and unrealized gains (losses): Included in earnings: Change in fair value / gain on sale (346,222) — (1,674) 720,693 1,010 (12,458,814) 1,940,362 (10,144,645) Net accretion — 8,491 — — — — — 8,491 Included in OCI — (19,998) — — — — — (19,998) Purchases / Originations 4,634,722 — — — — — — 4,634,722 Sales (3,678,671) — — — — — — (3,678,671) Cash repayments / receipts (200,728) (19,087) (1,992) — — — (18,870) (240,677) Transfers into Level III (86,201) — — — — — (1,506,438) (1,592,639) Transfers out of Level III (474,331) — — — — — 668,365 194,034 Consolidation of VIEs — — — — — 4,361,325 (1,810,101) 2,551,224 Deconsolidation of VIEs — — 530 — — (730,013) 960 (728,523) December 31, 2022 balance 2,784,594 113,386 19,108 1,761,002 17,790 52,453,041 (5,505,943) 51,642,978 Total realized and unrealized gains (losses): Included in earnings: Change in fair value / gain on sale 62,702 — 282 251,831 1,594 (8,790,373) 485,136 (7,988,828) Net accretion — 4,661 — — — — — 4,661 Included in OCI — (5,603) — — — — — (5,603) Purchases / Originations 756,522 — — — — — — 756,522 Sales (710,957) (601) — — — — — (711,558) Cash repayments / receipts (185,885) (9,475) (790) — — (598,351) (13,410) (807,911) Transfers into Level III 27 — — — — — (2,241,350) (2,241,323) Transfers out of Level III (61,366) — — — — — 1,670,771 1,609,405 Consolidation of VIEs — — — — — 722,039 — 722,039 December 31, 2023 balance $ 2,645,637 $ 102,368 $ 18,600 $ 2,012,833 $ 19,384 $ 43,786,356 $ (5,604,796) $ 42,980,382 Amount of unrealized gains (losses) attributable to assets still held at December 31, 2023: Included in earnings $ 15,853 $ 4,630 $ 282 $ 251,831 $ 1,594 $ (8,818,672) $ 485,136 $ (8,059,346) Included in OCI — (5,638) — — — — — (5,638) Amount of unrealized gains (losses) attributable to assets still held at December 31, 2022: Included in earnings $ (368,368) $ 8,157 $ (1,148) $ 720,693 $ 1,010 $ (12,458,814) $ 1,940,362 $ (10,158,108) Included in OCI — (19,592) — — — — — (19,592) Amounts were transferred from Level II to Level III due to a decrease in the observable relevant market activity and amounts were transferred from Level III to Level II due to an increase in the observable relevant market activity. The following table presents the fair values of our financial instruments not carried at fair value on the consolidated balance sheets (amounts in thousands): December 31, 2023 December 31, 2022 Carrying Fair Carrying Fair Financial assets not carried at fair value: Loans $ 17,574,249 $ 17,483,058 $ 18,401,439 $ 18,215,072 HTM debt securities 606,254 581,160 673,470 637,275 Financial liabilities not carried at fair value: Secured financing agreements, CLOs and SASB (a) $ 17,552,979 $ 17,466,172 $ 18,177,756 $ 18,017,651 Unsecured senior notes 2,158,888 2,128,835 2,329,211 2,199,135 __________________________________________________ (a) Includes debt related to properties held-for-sale (see Note 7). The following is quantitative information about significant unobservable inputs in our Level III measurements for those assets and liabilities measured at fair value on a recurring basis (dollars in thousands): Carrying Value at December 31, 2023 Valuation Unobservable Range (Weighted Average) as of (1) December 31, 2023 December 31, 2022 Loans under fair value option $ 2,645,637 Discounted cash flow, market pricing Coupon (d) 2.8% - 9.9% (4.5%) 2.8% - 9.3% (4.5%) Remaining contractual term (d) 4.3 - 38.5 years (27.4 years) 5.3 - 39.5 years (28.6 years) FICO score (a) 585 - 900 (749) 585 - 900 (749) LTV (b) 5% - 140% (68%) 4% - 92% (67%) Purchase price (d) 80.0% - 108.6% (101.4%) 80.0% - 108.6% (101.4%) RMBS 102,368 Discounted cash flow Constant prepayment rate (a) 2.9% - 9.6% (5.2%) 2.8% - 12.0% (5.5%) Constant default rate (b) 1.0% - 4.2% (1.7%) 1.1% - 4.4% (2.0%) Loss severity (b) 0% - 99% (17%) (f) 0% - 109% (24%) (f) Delinquency rate (c) 8% - 25% (14%) 6% - 29% (16%) Servicer advances (a) 30% - 78% (51%) 31% - 77.7% (53%) Annual coupon deterioration (b) 0% - 1.3% (0.1%) 0% - 2.6% (0.1%) Putback amount per projected total collateral loss (e) 0% - 8% (0.5%) 0% - 8% (0.5%) CMBS 18,600 Discounted cash flow Yield (b) 0% - 540.1% (10.6%) 0% - 117.5% (10.1%) Duration (c) 0 - 6.7 years (2.4 years) 0 - 7.7 years (3.0 years) Woodstar Fund investments 2,012,833 Discounted cash flow Discount rate - properties (b) 6.3% - 7.0% (6.7%) 6.3% - 6.8% (6.5%) Discount rate - debt (a) 3.0% - 6.9% (5.4%) 5.6% - 6.7% (6.1%) Terminal capitalization rate (b) 4.8% - 5.5% (5.2%) 5.0% - 5.5% (5.1%) Implied capitalization rate (b) 4.25% (4.25%) 4.20% (4.20%) Domestic servicing rights 19,384 Discounted cash flow Debt yield (a) 8.50% (8.50%) 8.25% (8.25%) Discount rate (b) 15% (15%) 15% (15%) VIE assets 43,786,356 Discounted cash flow Yield (b) 0% - 691.0% (15.9%) 0% - 453.6% (15.3%) Duration (c) 0 - 10.0 years (1.8 years) 0 - 11.0 years (2.4 years) VIE liabilities 5,604,796 Discounted cash flow Yield (b) 0% - 691.0% (11.4%) 0% - 453.6% (10.4%) Duration (c) 0 - 10.0 years (1.7 years) 0 - 11.0 years (1.8 years) ______________________________________________________________________________________________________________________ (1) Unobservable inputs were weighted by the relative carrying value of the instruments as of December 31, 2023 and 2022. Information about Uncertainty of Fair Value Measurements (a) Significant increase (decrease) in the unobservable input in isolation would result in a significantly higher (lower) fair value measurement. (b) Significant increase (decrease) in the unobservable input in isolation would result in a significantly lower (higher) fair value measurement. (c) Significant increase (decrease) in the unobservable input in isolation would result in either a significantly lower or higher (higher or lower) fair value measurement depending on the structural features of the security in question. (d) This unobservable input is not subject to variability as of the respective reporting dates. (e) Any delay in the putback recovery date leads to a decrease in fair value for the majority of securities in our RMBS portfolio. (f) 5% and 10% of the portfolio falls within a range of 45% - 80% as of December 31, 2023 and 2022, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Certain of our domestic subsidiaries have elected to be treated as taxable REIT subsidiaries (“TRSs”). TRSs permit us to participate in certain activities from which REITs are generally precluded, as long as these activities meet specific criteria, are conducted within the parameters of certain limitations established by the Code and are conducted in entities which elect to be treated as taxable subsidiaries under the Code. To the extent these criteria are met, we will continue to maintain our qualification as a REIT. Our TRSs engage in various real estate related operations, including special servicing of commercial real estate, originating and securitizing mortgage loans, and investing in entities which engage in real estate-related operations. As of December 31, 2023 and 2022, approximately $3.1 billion and $3.2 billion of assets were owned by TRS entities. Our TRSs are not consolidated for U.S. federal income tax purposes, but are instead taxed as corporations. For financial reporting purposes, a provision for current and deferred taxes is established for the portion of earnings recognized by us with respect to our interest in TRSs. Our income tax (benefit) provision consisted of the following for the years ended December 31, 2023, 2022 and 2021 (in thousands): For the Year Ended December 31, 2023 2022 2021 Current Federal $ 554 $ 1,446 $ 142 State (31) 705 (80) Foreign — — (392) Total current 523 2,151 (330) Deferred Federal 98 (47,128) 6,893 State (1,303) (16,546) 2,106 Total deferred (1,205) (63,674) 8,999 Total income tax (benefit) provision $ (682) $ (61,523) $ 8,669 Deferred income taxes in our U.S. tax jurisdiction reflect the net tax effects of temporary differences between the carrying amounts of the assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The following table presents the tax effects of temporary differences on net deferred tax assets which are classified in our consolidated balance sheets within other assets at December 31, 2023 and December 31, 2022 (in thousands): December 31, 2023 2022 Deferred tax assets/(liabilities), net Reserves and accruals $ 3,636 $ 3,314 Domestic intangible assets (22,890) (15,946) Investments in unconsolidated entities (984) 782 Net operating loss and interest expense carryforwards 78,979 69,294 Other U.S. temporary differences 47 140 Net deferred tax assets $ 58,788 $ 57,584 Unrecognized tax benefits were not material as of and during the years ended December 31, 2023 and 2022. The Company’s tax returns are no longer subject to audit for years ended prior to January 1, 2020. There was no pre-tax income from foreign operations during the years ended December 31, 2023, 2022 and 2021. The following table is a reconciliation of our U.S. federal income tax provision determined using our statutory federal tax rate to our reported income tax (benefit) provision for the years ended December 31, 2023, 2022 and 2021 (dollars in thousands): For the Year Ended December 31, 2023 2022 2021 Federal statutory tax rate $ 87,670 21.0 % $ 209,483 21.0 % $ 105,230 21.0 % REIT and other non-taxable income (88,281) (21.2) % (256,105) (25.7) % (92,121) (18.4) % State income taxes (201) — % (15,319) (1.5) % 4,307 0.9 % Federal benefit of state tax deduction 42 — % 3,217 0.3 % (905) (0.2) % Intra-entity transfers — — % (4,327) (0.4) % (6,635) (1.3) % Other 88 — % 1,528 0.1 % (1,207) (0.3) % Effective tax rate $ (682) (0.2) % $ (61,523) (6.2) % $ 8,669 1.7 % There were no valuation allowances for deferred tax assets during the years ended December 31, 2023, 2022 and 2021. As of December 31, 2023, our federal net operating loss (“NOL”) carryforwards for income tax purposes totaled $252.8 million. All of these NOLs can also be carried forward for state tax purposes, in addition to another net $6.2 million. The federal net operating loss carryforwards do not expire. If not utilized, the state net operating loss carryforwards will not begin to expire significantly until 2042. Such NOL primarily relates to unrealized fair value losses during the year ended December 31, 2022 on residential loans held in a TRS. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies As of December 31, 2023, our Commercial and Residential Lending Segment had future commercial loan funding commitments totaling $1.7 billion, of which we expect to fund $1.3 billion. These future funding commitments primarily relate to construction projects, capital improvements, tenant improvements and leasing commissions. As of December 31, 2023, our Infrastructure Lending Segment had future infrastructure loan funding commitments totaling $189.9 million, including $124.4 million under revolvers and letters of credit (“LCs”), and $65.5 million under delayed draw term loans. As of December 31, 2023, $5.2 million of revolvers and LCs were outstanding. Additionally, as of December 31, 2023, our Infrastructure Lending Segment had outstanding loan purchase commitments of $37.6 million. Generally, funding commitments are subject to certain conditions that must be met, such as customary construction draw certifications, minimum debt service coverage ratios or executions of new leases before advances are made to the borrower. Management is not aware of any other contractual obligations, legal proceedings, or any other contingent obligations incurred in the normal course of business that would have a material adverse effect on our consolidated financial statements. Lease Commitment Disclosures Our lease commitments consist of corporate office leases and ground leases for investment properties, all of which are classified as operating leases. We previously subleased some of the space within our corporate offices to third parties. Our lease costs and sublease income were as follows (in thousands): For the Year Ended December 31, 2023 2022 2021 Operating lease costs $ 6,864 $ 4,646 $ 4,100 Short-term lease costs 75 44 $ 2,227 Sublease income — — $ (766) Total lease cost $ 6,940 $ 4,690 $ 5,560 Information concerning our operating lease liabilities, which are classified within accounts payable, accrued expenses and other liabilities in our consolidated balance sheets as of December 31, 2023 and 2022, is as follows (dollars in thousands): For the Year Ended December 31, 2023 2022 Cash paid for amounts included in the measurement of lease liabilities —operating $ 5,025 $ 2,129 December 31, 2023 December 31, 2022 Weighted-average remaining lease term 12.0 years 13.0 years Weighted-average discount rate 8.8% 8.7% Future maturity of operating lease liabilities: 2024 $ 5,145 2025 5,320 2026 5,275 2027 4,829 2028 4,868 Thereafter 41,543 Total 66,980 Less interest component (29,325) Operating lease liability $ 37,655 |
Segment and Geographic Data
Segment and Geographic Data | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Segment and Geographic Data | Segment and Geographic Data In its operation of the business, management, including our chief operating decision maker, who is our Chief Executive Officer, reviews certain financial information, including segmented internal profit and loss statements prepared on a basis prior to the impact of consolidating securitization VIEs under ASC 810. The segment information within this Note is reported on that basis. The table below presents our results of operations for the year ended December 31, 2023 by business segment (amounts in thousands): Commercial and Infrastructure Property Investing Corporate Subtotal Securitization Total Revenues: Interest income from loans $ 1,557,631 $ 236,884 $ — $ 9,589 $ — $ 1,804,104 $ — $ 1,804,104 Interest income from investment securities 135,130 1,805 — 92,147 — 229,082 (152,558) 76,524 Servicing fees 553 — — 44,895 — 45,448 (12,327) 33,121 Rental income 8,369 — 93,459 25,838 — 127,666 — 127,666 Other revenues 2,527 1,296 713 2,335 1,622 8,493 — 8,493 Total revenues 1,704,210 239,985 94,172 174,804 1,622 2,214,793 (164,885) 2,049,908 Costs and expenses: Management fees 496 — — — 141,047 141,543 — 141,543 Interest expense 971,028 141,016 54,522 34,611 235,776 1,436,953 (846) 1,436,107 General and administrative 55,782 15,569 4,155 87,619 17,087 180,212 — 180,212 Acquisition and investment pursuit costs 1,128 17 (5) (215) — 925 — 925 Costs of rental operations 8,777 — 22,806 13,259 — 44,842 — 44,842 Depreciation and amortization 7,206 103 31,960 9,788 84 49,141 — 49,141 Credit loss provision, net 225,720 18,008 — — — 243,728 — 243,728 Other expense 1,730 — 23 67 — 1,820 — 1,820 Total costs and expenses 1,271,867 174,713 113,461 145,129 393,994 2,099,164 (846) 2,098,318 Other income (loss): Change in net assets related to consolidated VIEs — — — — — — 181,688 181,688 Change in fair value of servicing rights — — — 401 — 401 1,193 1,594 Change in fair value of investment securities, net 69,259 — — (51,889) — 17,370 (16,603) 767 Change in fair value of mortgage loans, net 25,874 — — 36,828 — 62,702 — 62,702 Income from affordable housing fund investments — — 291,244 — — 291,244 — 291,244 Earnings (loss) from unconsolidated entities 4,410 5,702 — 8,849 — 18,961 (2,239) 16,722 (Loss) gain on sale of investments and other assets, net (112) — — 25,841 — 25,729 — 25,729 (Loss) gain on derivative financial instruments, net (25,206) 123 2,111 (4,348) (11,285) (38,605) — (38,605) Foreign currency gain (loss), net 60,644 201 (11) — — 60,834 — 60,834 Loss on extinguishment of debt (804) — — (434) — (1,238) — (1,238) Other (loss) income, net (135,576) — (5) 29 — (135,552) — (135,552) Total other income (loss) (1,511) 6,026 293,339 15,277 (11,285) 301,846 164,039 465,885 Income (loss) before income taxes 430,832 71,298 274,050 44,952 (403,657) 417,475 — 417,475 Income tax benefit (provision) 990 590 — (898) — 682 — 682 Net income (loss) 431,822 71,888 274,050 44,054 (403,657) 418,157 — 418,157 Net income attributable to non-controlling interests (14) — (77,156) (1,774) — (78,944) — (78,944) Net income (loss) attributable to Starwood Property Trust, Inc . $ 431,808 $ 71,888 $ 196,894 $ 42,280 $ (403,657) $ 339,213 $ — $ 339,213 The table below presents our results of operations for the year ended December 31, 2022 by business segment (amounts in thousands): Commercial and Infrastructure Property Investing Corporate Subtotal Securitization Total Revenues: Interest income from loans $ 1,058,326 $ 150,230 $ — $ 9,965 $ — $ 1,218,521 $ — $ 1,218,521 Interest income from investment securities 102,125 3,681 — 99,043 — 204,849 (139,791) 65,058 Servicing fees 558 — — 54,836 — 55,394 (15,035) 40,359 Rental income 6,467 — 91,587 30,209 — 128,263 — 128,263 Other revenues 504 451 245 11,258 69 12,527 (12) 12,515 Total revenues 1,167,980 154,362 91,832 205,311 69 1,619,554 (154,838) 1,464,716 Costs and expenses: Management fees 592 — — — 154,959 155,551 — 155,551 Interest expense 501,126 79,137 33,938 26,686 157,097 797,984 (863) 797,121 General and administrative 52,701 14,187 4,069 85,478 18,777 175,212 288 175,500 Acquisition and investment pursuit costs 3,634 3 7 (244) — 3,400 — 3,400 Costs of rental operations 7,833 — 21,868 14,414 — 44,115 — 44,115 Depreciation and amortization 4,720 387 32,714 11,472 — 49,293 — 49,293 Credit loss provision, net 39,780 6,877 — — — 46,657 — 46,657 Other expense 1,251 — 55 8 — 1,314 — 1,314 Total costs and expenses 611,637 100,591 92,651 137,814 330,833 1,273,526 (575) 1,272,951 Other income (loss): Change in net assets related to consolidated VIEs — — — — — — 124,001 124,001 Change in fair value of servicing rights — — — (2,051) — (2,051) 3,061 1,010 Change in fair value of investment securities, net 11,818 — — (43,179) — (31,361) 29,157 (2,204) Change in fair value of mortgage loans, net (352,412) — — 6,190 — (346,222) — (346,222) Income from affordable housing fund investments — — 755,736 — — 755,736 — 755,736 (Loss) earnings from unconsolidated entities (11,242) 3,982 — 2,871 — (4,389) (1,934) (6,323) Gain on sale of investments and other assets, net 86,532 — — 51,079 — 137,611 — 137,611 Gain (loss) on derivative financial instruments, net 338,994 1,235 35,081 41,692 (82,987) 334,015 — 334,015 Foreign currency (loss) gain, net (96,651) (317) 12 — — (96,956) — (96,956) Loss on extinguishment of debt (209) (469) — (507) — (1,185) — (1,185) Other (loss) income, net (92,632) — (1,103) — — (93,735) 25 (93,710) Total other income (loss) (115,802) 4,431 789,726 56,095 (82,987) 651,463 154,310 805,773 Income (loss) before income taxes 440,541 58,202 788,907 123,592 (413,751) 997,491 47 997,538 Income tax benefit (provision) 69,199 12 — (7,688) — 61,523 — 61,523 Net income (loss) 509,740 58,214 788,907 115,904 (413,751) 1,059,014 47 1,059,061 Net income attributable to non-controlling interests (14) — (172,598) (14,927) — (187,539) (47) (187,586) Net income (loss) attributable to Starwood Property Trust, Inc . $ 509,726 $ 58,214 $ 616,309 $ 100,977 $ (413,751) $ 871,475 $ — $ 871,475 The table below presents our results of operations for the year ended December 31, 2021 by business segment (amounts in thousands): Commercial and Infrastructure Property Investing Corporate Subtotal Securitization Total Revenues: Interest income from loans $ 705,499 $ 85,057 $ — $ 9,735 $ — $ 800,291 $ — $ 800,291 Interest income from investment securities 67,589 2,190 — 96,771 — 166,550 (121,382) 45,168 Servicing fees 453 — — 58,896 — 59,349 (20,610) 38,739 Rental income 5,486 — 234,840 38,505 — 278,831 — 278,831 Other revenues 294 293 198 6,278 — 7,063 (4) 7,059 Total revenues 779,321 87,540 235,038 210,185 — 1,312,084 (141,996) 1,170,088 Costs and expenses: Management fees 948 — — (793) 167,594 167,749 24 167,773 Interest expense 206,353 37,671 59,970 22,543 119,402 445,939 (852) 445,087 General and administrative 42,000 14,557 8,067 88,879 17,472 170,975 327 171,302 Acquisition and investment pursuit costs 893 250 (60) 101 — 1,184 — 1,184 Costs of rental operations 1,769 — 92,190 17,708 — 111,667 — 111,667 Depreciation and amortization 1,243 402 65,833 15,523 — 83,001 — 83,001 Credit loss (reversal) provision, net (3,560) 11,895 — — — 8,335 — 8,335 Other expense 31 — 583 94 — 708 — 708 Total costs and expenses 249,677 64,775 226,583 144,055 304,468 989,558 (501) 989,057 Other income (loss): Change in net assets related to consolidated VIEs — — — — — — 162,333 162,333 Change in fair value of servicing rights — — — 4,319 — 4,319 (741) 3,578 Change in fair value of investment securities, net (8,277) — — 28,221 — 19,944 (20,331) (387) Change in fair value of mortgage loans, net 13,836 — — 55,214 — 69,050 — 69,050 Income from affordable housing fund investments — — 6,425 — — 6,425 — 6,425 Earnings (loss) from unconsolidated entities 6,984 1,160 — 815 — 8,959 (207) 8,752 Gain on sale of investments and other assets, net 16,584 189 — 22,211 — 38,984 — 38,984 Gain (loss) on derivative financial instruments, net 73,209 1,253 10,155 8,288 (10,542) 82,363 — 82,363 Foreign currency loss, net (36,045) (183) — (64) — (36,292) — (36,292) Loss on extinguishment of debt (289) (1,264) (5,281) (113) (481) (7,428) — (7,428) Other (loss) income, net (7,407) 23 — 70 — (7,314) — (7,314) Total other income (loss) 58,595 1,178 11,299 118,961 (11,023) 179,010 141,054 320,064 Income (loss) before income taxes 588,239 23,943 19,754 185,091 (315,491) 501,536 (441) 501,095 Income tax (provision) benefit (1,201) 306 — (7,775) 1 (8,669) — (8,669) Net income (loss) 587,038 24,249 19,754 177,316 (315,490) 492,867 (441) 492,426 Net (income) loss attributable to non-controlling interests (14) — (20,121) (24,993) — (45,128) 441 (44,687) Net income (loss) attributable to Starwood Property Trust, Inc . $ 587,024 $ 24,249 $ (367) $ 152,323 $ (315,490) $ 447,739 $ — $ 447,739 The table below presents our consolidated balance sheet as of December 31, 2023 by business segment (amounts in thousands): Commercial and Infrastructure Property Investing Corporate Subtotal Securitization Total Assets: Cash and cash equivalents $ 8,823 $ 56,300 $ 19,957 $ 22,011 $ 87,569 $ 194,660 $ — $ 194,660 Restricted cash 23,902 28,693 1,016 5,175 58,526 117,312 — 117,312 Loans held-for-investment, net 15,069,389 2,495,660 — 9,200 — 17,574,249 — 17,574,249 Loans held-for-sale 2,604,594 — — 41,043 — 2,645,637 — 2,645,637 Investment securities 1,147,829 19,042 — 1,147,550 — 2,314,421 (1,578,859) 735,562 Properties, net 431,155 — 555,455 59,774 — 1,046,384 — 1,046,384 Properties held-for-sale — — 290,937 — — 290,937 — 290,937 Investments of consolidated affordable housing fund — — 2,012,833 — — 2,012,833 — 2,012,833 Investments in unconsolidated entities 19,151 52,691 — 33,134 — 104,976 (14,600) 90,376 Goodwill — 119,409 — 140,437 — 259,846 — 259,846 Intangible assets 13,415 — 25,432 63,985 — 102,832 (37,865) 64,967 Derivative assets 55,559 84 5,638 2,156 — 63,437 — 63,437 Accrued interest receivable 180,441 12,485 1,502 1,369 5,070 200,867 — 200,867 Other assets 301,436 3,486 50,459 15,828 49,564 420,773 — 420,773 VIE assets, at fair value — — — — — — 43,786,356 43,786,356 Total Assets $ 19,855,694 $ 2,787,850 $ 2,963,229 $ 1,541,662 $ 200,729 $ 27,349,164 $ 42,155,032 $ 69,504,196 Liabilities and Equity Liabilities: Accounts payable, accrued expenses and other liabilities $ 106,236 $ 45,232 $ 12,225 $ 44,452 $ 85,297 $ 293,442 $ — $ 293,442 Related-party payable — — — — 44,816 44,816 — 44,816 Dividends payable — — — — 152,888 152,888 — 152,888 Derivative liabilities 54,066 — — — 48,401 102,467 — 102,467 Secured financing agreements, net 10,368,668 1,088,965 598,350 495,857 1,336,913 13,888,753 (20,757) 13,867,996 Collateralized loan obligations and single asset securitization, net 2,674,938 816,354 — — — 3,491,292 — 3,491,292 Unsecured senior notes, net — — — — 2,158,888 2,158,888 — 2,158,888 Debt related to properties held-for-sale — — 193,691 — — 193,691 — 193,691 VIE liabilities, at fair value — — — — — — 42,175,734 42,175,734 Total Liabilities 13,203,908 1,950,551 804,266 540,309 3,827,203 20,326,237 42,154,977 62,481,214 Temporary Equity: Redeemable non-controlling interests — — 414,348 — — 414,348 — 414,348 Permanent Equity: Starwood Property Trust, Inc. Stockholders’ Equity: Common stock — — — — 3,208 3,208 — 3,208 Additional paid-in capital 1,121,413 664,621 (437,169) (705,176) 5,220,981 5,864,670 — 5,864,670 Treasury stock — — — — (138,022) (138,022) — (138,022) Retained earnings (accumulated deficit) 5,514,906 172,678 1,974,539 1,556,399 (8,712,641) 505,881 — 505,881 Accumulated other comprehensive income 15,352 — — — — 15,352 — 15,352 Total Starwood Property Trust, Inc. Stockholders’ Equity 6,651,671 837,299 1,537,370 851,223 (3,626,474) 6,251,089 — 6,251,089 Non-controlling interests in consolidated subsidiaries 115 — 207,245 150,130 — 357,490 55 357,545 Total Permanent Equity 6,651,786 837,299 1,744,615 1,001,353 (3,626,474) 6,608,579 55 6,608,634 Total Liabilities and Equity $ 19,855,694 $ 2,787,850 $ 2,963,229 $ 1,541,662 $ 200,729 $ 27,349,164 $ 42,155,032 $ 69,504,196 The table below presents our consolidated balance sheet as of December 31, 2022 by business segment (amounts in thousands): Commercial and Infrastructure Property Investing Corporate Subtotal Securitization Total Assets: Cash and cash equivalents $ 68,593 $ 31,153 $ 31,194 $ 39,023 $ 91,098 $ 261,061 $ — $ 261,061 Restricted cash 18,556 31,133 981 5,259 65,143 121,072 — 121,072 Loans held-for-investment, net 16,038,930 2,352,932 — 9,577 — 18,401,439 — 18,401,439 Loans held-for-sale 2,763,458 — — 21,136 — 2,784,594 — 2,784,594 Investment securities 1,250,893 66,204 — 1,165,628 — 2,482,725 (1,666,921) 815,804 Properties, net 463,492 — 864,778 121,716 — 1,449,986 — 1,449,986 Investments of consolidated affordable housing fund — — 1,761,002 — — 1,761,002 — 1,761,002 Investments in unconsolidated entities 25,326 47,078 — 33,030 — 105,434 (13,542) 91,892 Goodwill — 119,409 — 140,437 — 259,846 — 259,846 Intangible assets 11,908 — 29,613 66,310 — 107,831 (39,058) 68,773 Derivative assets 101,082 122 1,803 5,614 — 108,621 — 108,621 Accrued interest receivable 151,852 9,856 863 1,105 5,120 168,796 (275) 168,521 Other assets 170,177 3,614 54,313 12,929 56,444 297,477 — 297,477 VIE assets, at fair value — — — — — — 52,453,041 52,453,041 Total Assets $ 21,064,267 $ 2,661,501 $ 2,744,547 $ 1,621,764 $ 217,805 $ 28,309,884 $ 50,733,245 $ 79,043,129 Liabilities and Equity Liabilities: Accounts payable, accrued expenses and other liabilities $ 146,897 $ 20,656 $ 11,716 $ 46,377 $ 73,353 $ 298,999 $ — $ 298,999 Related-party payable — — — — 41,186 41,186 — 41,186 Dividends payable — — — — 151,511 151,511 — 151,511 Derivative liabilities 21,523 105 — — 69,776 91,404 — 91,404 Secured financing agreements, net 10,804,970 1,042,679 789,719 543,256 1,342,074 14,522,698 (21,166) 14,501,532 Collateralized loan obligations and single asset securitization, net 2,862,211 814,013 — — — 3,676,224 — 3,676,224 Unsecured senior notes, net — — — — 2,329,211 2,329,211 — 2,329,211 VIE liabilities, at fair value — — — — — — 50,754,355 50,754,355 Total Liabilities 13,835,601 1,877,453 801,435 589,633 4,007,111 21,111,233 50,733,189 71,844,422 Temporary Equity: Redeemable non-controlling interests — — 362,790 — — 362,790 — 362,790 Permanent Equity: Starwood Property Trust, Inc. Stockholders’ Equity: Common stock — — — — 3,181 3,181 — 3,181 Additional paid-in capital 2,124,496 683,258 (405,955) (646,662) 4,051,950 5,807,087 — 5,807,087 Treasury stock — — — — (138,022) (138,022) — (138,022) Retained earnings (accumulated deficit) 5,083,100 100,790 1,777,643 1,514,119 (7,706,415) 769,237 — 769,237 Accumulated other comprehensive income 20,955 — — — — 20,955 — 20,955 Total Starwood Property Trust, Inc. Stockholders’ Equity 7,228,551 784,048 1,371,688 867,457 (3,789,306) 6,462,438 — 6,462,438 Non-controlling interests in consolidated subsidiaries 115 — 208,634 164,674 — 373,423 56 373,479 Total Permanent Equity 7,228,666 784,048 1,580,322 1,032,131 (3,789,306) 6,835,861 56 6,835,917 Total Liabilities and Equity $ 21,064,267 $ 2,661,501 $ 2,744,547 $ 1,621,764 $ 217,805 $ 28,309,884 $ 50,733,245 $ 79,043,129 Revenues generated from foreign sources were $455.6 million, $275.3 million and $177.8 million for the years ended December 31, 2023, 2022 and 2021, respectively. The majority of our revenues generated from foreign sources are derived from the United Kingdom and Australia. Refer to Schedules III and IV for a detailed listing of the properties and loans held by the Company, including their respective geographic locations. |
Schedule III - Real Estate and
Schedule III - Real Estate and Accumulated Depreciation | 12 Months Ended |
Dec. 31, 2023 | |
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation Disclosure [Abstract] | |
Schedule III - Real Estate and Accumulated Depreciation | Starwood Property Trust, Inc. and Subsidiaries Schedule III—Real Estate and Accumulated Depreciation December 31, 2023 (Dollars in thousands) Costs Initial Cost Capitalized Gross Amounts Carried at Property Type / to Company Subsequent to December 31, 2023 Accumulated Acquisition Geographic Location Encumbrances Land Property Acquisition(1) Land Property Total Depreciation(3) Date Aggregated Properties Hotel - U.S., Midwest (1 property) $ — $ — $ 5,565 $ 1,812 $ — $ 7,377 $ 7,377 $ (4,732) Feb-18 Industrial - U.S., South East (1 property) — 813 — — 813 — 813 — Mar-19 Medical office - U.S., Midwest (7 properties) 78,048 2,764 97,797 10,209 2,764 108,006 110,770 (21,885) Dec-16 Medical office - U.S., North East (7 properties) 191,661 11,283 176,996 249 11,283 177,245 188,528 (37,744) Dec-16 Medical office - U.S., South East (6 properties) 107,252 7,930 117,678 2,102 7,930 119,780 127,710 (26,506) Dec-16 Medical office - U.S., South West (8 properties) 125,345 15,921 126,842 4,179 15,921 131,021 146,942 (30,121) Dec-16 Medical office - U.S., West (6 properties) 97,694 13,415 107,845 3,832 13,415 111,677 125,092 (27,332) Dec-16 Mixed Use - U.S., West (1 property) 8,667 1,003 14,323 1,472 1,003 15,795 16,798 (3,618) Feb-16 Multifamily - U.S., West (1 property) 30,503 12,402 48,454 — 12,402 48,454 60,856 (77) Dec-23 Office - U.S., North East (1 property) 18,255 7,250 10,614 8,807 7,250 19,421 26,671 (7,601) May-18 Office - U.S., South West (1 property) 87,750 32,867 79,661 — 23,177 59,281 82,458 (7,369) May-22 Office - U.S., West (2 properties) 116,637 65,363 183,731 8,643 40,045 122,858 162,903 (7,049) Oct-17 to Dec-22 Residential - U.S., North East (1 property) — — 93,547 14,703 — 108,251 108,251 — Oct-20 to Apr-21 Retail - U.S., Midwest (8 properties) 78,745 27,307 143,251 1,450 27,307 144,701 172,008 (25,928) Nov-15 to May-23 Retail - U.S., South East (4 properties) 42,200 19,995 59,949 — 19,995 59,949 79,944 (11,076) Sep-17 Retail - U.S., South West (5 properties) 62,186 33,272 64,461 220 33,272 64,681 97,953 (14,190) Sep-15 to Sep-17 Retail - U.S., West (2 properties) 33,000 18,633 36,794 — 18,633 36,794 55,427 (7,952) Sep-17 $ 1,077,943 $ 270,218 $ 1,367,508 $ 57,678 $ 235,210 $ 1,335,291 $ 1,570,501 (2) $ (233,180) __________________________________________ Notes to Schedule III: (1) No material costs subsequent to acquisition were capitalized to land. (2) The aggregate cost for federal income tax purposes is $1.8 billion. (3) Depreciation is computed based upon estimated useful lives as described in Note 7 to the Consolidated Financial Statements. The following schedule presents our real estate activity during the years ended December 31, 2023, 2022 and 2021 (in thousands): 2023 2022 2021 Beginning balance, January 1 $ 1,659,495 $ 1,347,844 $ 2,573,296 Additions during the year: Acquisitions through foreclosure and other transfers 97,585 357,360 28,843 Improvements 22,669 20,931 24,390 Total additions 120,254 378,291 53,233 Deductions during the year: Costs of real estate sold (84,309) (66,578) (55,945) Reclassification of multifamily properties (1) — — (1,222,740) Impairments (124,902) — — Other (37) (62) — Total deductions (209,248) (66,640) (1,278,685) Ending balance, December 31 $ 1,570,501 $ 1,659,495 $ 1,347,844 The following schedule presents activity within accumulated depreciation during the years ended December 31, 2023, 2022 and 2021 (in thousands): 2023 2022 2021 Beginning balance, January 1 $ 209,509 $ 181,457 $ 302,143 Depreciation expense 40,858 40,006 72,299 Reclassification of multifamily properties (1) — — (186,716) Disposition/write-offs (17,187) (11,954) (6,269) Ending balance, December 31 $ 233,180 $ 209,509 $ 181,457 __________________________________________ (1) Refer to Notes 2 and 8 to the Consolidated Financial Statements for a discussion of the reclassification of our multifamily properties upon establishment of the Woodstar Fund which, as an investment company under GAAP, is required to present its investments at fair value on an unconsolidated basis. The net investment in the multifamily properties is now reflected within “Investments of consolidated affordable housing fund, at fair value” in our consolidated balance sheets. |
Schedule IV - Mortgage Loans on
Schedule IV - Mortgage Loans on Real Estate | 12 Months Ended |
Dec. 31, 2023 | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Abstract] | |
Schedule IV - Mortgage Loans on Real Estate | Starwood Property Trust, Inc. and Subsidiaries Schedule IV—Mortgage Loans on Real Estate December 31, 2023 (Dollars in thousands) Principal Amount of Prior Face Carrying Payment Maturity Delinquent Description/Location Liens (1) Amount (1) Amount Interest Rate (2) Terms (1) Date (3) Loans Individually Significant Mortgage Loans Other, Various, Australia (1 mortgage) None 937,737 928,362 3BBSY+4.75% I/O 6/24/2029 — Aggregated First Mortgages: (4) Hotel, International, Floating (2 mortgages) N/A N/A 99,143 3EUR+4.50% N/A 2026 — Hotel, International, Floating (4 mortgages) N/A N/A 74,513 SARON+4.75% N/A 2027 — Hotel, International, Floating (5 mortgages) N/A N/A 61,350 SOFR+3.10% to 9.10% N/A 2024 — Hotel, Mid Atlantic, Floating (5 mortgages) N/A N/A 106,245 SOFR+2.10% to 6.90% N/A 2024 — Hotel, Midwest, Floating (4 mortgages) N/A N/A 53,415 SOFR+2.35% to 8.73% N/A 2025 — Hotel, North East, Floating (9 mortgages) N/A N/A 310,952 SOFR+2.50% to 10.10% N/A 2025-2026 — Hotel, South East, Floating (20 mortgages) N/A N/A 148,248 SOFR+2.50% to 13.37% N/A 2025-2026 — Hotel, South West, Floating (8 mortgages) N/A N/A 97,486 SOFR+2.10% to 5.85% N/A 2026 — Hotel, Various, Floating (18 mortgages) N/A N/A 579,533 SOFR+3.86% to 10.25% N/A 2026-2027 — Hotel, West, Floating (12 mortgages) N/A N/A 86,464 SOFR+2.60% to 8.35% N/A 2024 — Hotel, West, Floating (2 mortgages) N/A N/A 37,763 P+(0.56)% to 6.44% N/A 2022 37,763 Industrial, International, Floating (4 mortgages) N/A N/A 149,150 3BBSY+3.10% to 3.55% N/A 2028 — Industrial, International, Floating (9 mortgages) N/A N/A 414,525 3EUR+2.25% to 11.00% N/A 2025-2026 — Industrial, International, Floating (2 mortgages) N/A N/A 83,935 SONIA ON+2.27% to 4.50% N/A 2024 — Industrial, North East, Floating (13 mortgages) N/A N/A 428,397 SOFR+3.22% to 8.06% N/A 2026-2027 — Industrial, South East, Fixed (4 mortgages) N/A N/A 31,128 8.18% N/A 2024 — Industrial, West, Floating (6 mortgages) N/A N/A 129,521 SOFR+1.85% to 7.60% N/A 2026-2027 — Mixed Use, International, Floating (2 mortgages) N/A N/A 89,017 3EUR+4.65% N/A 2027 — Mixed Use, International, Floating (1 mortgage) N/A N/A 446,578 SONIA ON+5.40% N/A 2028 — Mixed Use, Mid Atlantic, Floating (1 mortgage) N/A N/A 215,383 SOFR+3.26% N/A 2025 — Mixed Use, South East, Floating (14 mortgages) N/A N/A 151,452 SOFR+2.18% to 8.70% N/A 2028 — Mixed Use, South West, Floating (6 mortgages) N/A N/A 238,840 SOFR+4.60% N/A 2026 — Multi-family, International, Floating (1 mortgage) N/A N/A 52,060 1BBSY+3.75% N/A 2025 — Multi-family, International, Floating (1 mortgage) N/A N/A 158,305 3BBSY+3.95% N/A 2025 — Multi-family, International, Floating (8 mortgages) N/A N/A 767,344 SONIA ON+2.76% to 4.07% N/A 2025-2028 — Multi-family, Mid Atlantic, Floating (16 mortgages) N/A N/A 382,131 SOFR+1.85% to 9.00% N/A 2026-2027 — Multi-family, Midwest, Floating (4 mortgages) N/A N/A 76,626 SOFR+2.85% to 9.85% N/A 2026 — Multi-family, North East, Floating (27 mortgages) N/A N/A 789,236 SOFR+2.25% to 10.85% N/A 2025-2028 — Multi-family, South East, Floating (51 mortgages) N/A N/A 1,352,286 SOFR+1.75% to 16.50% N/A 2026-2027 — Multi-family, South West, Floating (102 mortgages) N/A N/A 1,669,342 SOFR+1.75% to 16.50% N/A 2024-2027 — Multi-family, West, Floating (19 mortgages) N/A N/A 565,695 SOFR+2.60% to 8.85% N/A 2025-2027 — Office, International, Floating (3 mortgages) N/A N/A 240,082 3EUR+2.74% to 7.50% N/A 2025-2028 — Office, International, Floating (1 mortgage) N/A N/A 80,089 EUR+6.00% N/A 2024 — Office, International, Floating (6 mortgages) N/A N/A 467,828 SONIA ON+3.55% to 4.37% N/A 2024-2027 — Office, Mid Atlantic, Floating (33 mortgages) N/A N/A 550,892 SOFR+2.35% to 7.35% N/A 2024-2027 — Office, Mid Atlantic, Floating (14 mortgages) N/A N/A 246,657 P+0.19% to 0.93% N/A 2023-2024 122,310 Office, Midwest, Floating (17 mortgages) N/A N/A 144,834 SOFR+1.85% to 9.85% N/A 2024-2025 — Office, North East, Fixed (8 mortgages) N/A N/A 95,527 6.00% N/A 2026 — Office, North East, Floating (26 mortgages) N/A N/A 459,933 SOFR+2.70% to 8.70% N/A 2024-2027 — Office, South East, Fixed (2 mortgages) N/A N/A 47,835 5.00% to 12.00% N/A 2024 — Office, South East, Floating (16 mortgages) N/A N/A 326,372 SOFR+1.75% to 10.50% N/A 2026 — Office, South West, Floating (26 mortgages) N/A N/A 454,815 SOFR+2.10% to 8.35% N/A 2023-2026 252,000 (5) Office, West, Floating (32 mortgages) N/A N/A 314,862 SOFR+2.10% to 6.10% N/A 2024-2025 — Other, International, Floating (2 mortgages) N/A N/A 275,698 SONIA ON+4.40% to 8.05% N/A 2028 — Other, Midwest, Floating (2 mortgages) N/A N/A 29,702 SOFR+5.00% to 12.50% N/A 2029 — Other, North East, Fixed (1 mortgage) N/A N/A 9,200 4.09% N/A 2026 9,200 Other, South West, Fixed (1 mortgage) N/A N/A 20,000 7.00% N/A 2028 — Residential, North East, Floating (3 mortgages) N/A N/A 194,269 SOFR+4.10% N/A 2027 — Residential, South East, Floating (4 mortgages) N/A N/A 16,213 SOFR+5.80% N/A 2026 — Residential, West, Floating (2 mortgages) N/A N/A 18,582 SOFR+3.87% N/A 2026 — Principal Amount of Prior Face Carrying Payment Maturity Delinquent Description/Location Liens (1) Amount (1) Amount Interest Rate (2) Terms (1) Date (3) Loans Retail, North East, Floating (2 mortgages ) N/A N/A 185,386 SOFR+9.00% N/A 2026 — Loans Held-for-Sale, Various, Fixed N/A N/A 2,645,637 2.80% to 9.90% N/A 2028-2062 68,688 Aggregated Subordinated and Mezzanine Loans: (4) Hotel, South East, Floating (1 mortgage) N/A N/A 38,563 SOFR+9.47% N/A 2026 — Hotel, West, Floating (2 mortgages) N/A N/A 19,179 SOFR+11.08% N/A 2026 — Industrial, South East, Fixed (1 mortgage) N/A N/A 3,967 8.18% N/A 2024 — Industrial, South East, Floating (2 mortgages) N/A N/A 9,214 SOFR+9.43% N/A 2025 — Industrial, South West, Floating (2 mortgages) N/A N/A 17,660 SOFR+10.15% N/A 2027 — Industrial, West, Floating (2 mortgages) N/A N/A 12,185 SOFR+11.40% N/A 2024 — Multi-family, North East, Floating (3 mortgages) N/A N/A 75,168 SOFR+3.35% to 13.75% N/A 2025-2026 — Office, International, Floating (5 mortgages) N/A N/A 36,784 3EUR+7.00% to 8.95% N/A 2024-2025 — Office, West, Floating (2 mortgages) N/A N/A 81,549 SOFR+6.34% N/A 2026 — Retail, Midwest, Fixed (1 mortgage) N/A N/A 4,925 7.16% N/A 2024 4,925 Residential, North East, Floating (2 mortgages) N/A N/A 9,988 SOFR+7.75% N/A 2028 — Residential, West, Fixed (1 mortgage) N/A N/A 40,525 9.00% N/A 2028 — Loan Loss Allowance — — (298,775) — Prepaid Loan Costs, Net — — 3,445 — $ 17,653,215 (6) $ 494,886 __________________________________________ Notes to Schedule IV: (1) Disclosure of prior liens, face amount and payment terms are only required for individually significant mortgage loans. I/O = interest only until maturity. (2) EUR = one month EURO LIBOR rate, 3EUR = three month EURO LIBOR rate, SOFR = one month SOFR rate, 1BBSY = one month BBSY rate, 3BBSY = three month BBSY rate, SARON = SARON overnight rate, SONIA ON = SONIA overnight rate, P = Prime rate. (3) Based on fully extended maturity date. (4) First mortgages include first mortgage loans and any contiguous mezzanine loan components because as a whole, the expected credit quality of these loans is more similar to that of a first mortgage loan. (5) Subsequent to December 31, 2023, this loan was brought current and is no longer delinquent. (6) The aggregate cost for federal income tax purposes is $18.0 billion. The following schedule presents activity within our Commercial and Residential Lending Segment and Investing and Servicing Segment loan portfolios during the years ended December 31, 2023, 2022 and 2021 (amounts in thousands): For the year ended December 31, 2023 2022 2021 Balance at January 1 $ 18,774,708 $ 16,368,799 $ 10,584,400 Acquisitions/originations/additional funding 2,441,608 9,474,999 13,173,459 Capitalized interest 124,214 122,711 118,273 Basis of loans sold (866,104) (4,226,727) (4,139,166) Loan maturities/principal repayments (2,763,682) (1,962,657) (3,709,444) Discount accretion/premium amortization 52,601 52,334 51,816 Changes in fair value 62,702 (346,222) 69,050 Foreign currency translation, net 152,869 (304,051) (71,419) Credit loss (provision) reversal, net (222,266) (42,201) 7,947 Loan foreclosure, equity control and conversion to equity interest (102,774) (273,929) (36,308) Transfer to/from other asset classifications or between segments (661) (88,348) 320,191 Balance at December 31 $ 17,653,215 $ 18,774,708 $ 16,368,799 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pay vs Performance Disclosure | |||
Net Income (Loss) Attributable to Parent | $ 339,213 | $ 871,475 | $ 447,739 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 31, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Balance Sheet Presentation of Securitization Variable Interest Entities | Balance Sheet Presentation of Securitization Variable Interest Entities We operate investment businesses that acquire unrated, investment grade and non-investment grade rated CMBS and RMBS. These securities represent interests in securitization structures (commonly referred to as special purpose entities, or “SPEs”). These SPEs are structured as pass through entities that receive principal and interest on the underlying collateral and distribute those payments to the certificate holders. Under accounting principles generally accepted in the United States of America (“GAAP”), SPEs typically qualify as VIEs. These are entities that, by design, either (1) lack sufficient equity to permit the entity to finance its activities without additional subordinated financial support from other parties, or (2) have equity investors that do not have the ability to make significant decisions relating to the entity’s operations through voting rights, or do not have the obligation to absorb the expected losses, or do not have the right to receive the residual returns of the entity. Because we often serve as the special servicer or servicing administrator of the trusts in which we invest, or we have the ability to remove and replace the special servicer without cause, consolidation of these structures is required pursuant to GAAP as outlined in detail below. This results in a consolidated balance sheet which presents the gross assets and liabilities of the VIEs. The assets and other instruments held by these VIEs are restricted and can only be used to fulfill the obligations of the entity. Additionally, the obligations of the VIEs do not have any recourse to the general credit of any other consolidated entities, nor to us as the consolidator of these VIEs. The VIE liabilities initially represent investment securities on our balance sheet (pre-consolidation). Upon consolidation of these VIEs, our associated investment securities are eliminated, as is the interest income related to those securities. Similarly, the fees we earn in our roles as special servicer of the bonds issued by the consolidated VIEs or as collateral administrator of the consolidated VIEs are also eliminated. Finally, a portion of the identified servicing intangible associated with the eliminated fee streams is eliminated in consolidation. |
Basis of Accounting and Principles of Consolidation | Basis of Accounting and Principles of Consolidation The accompanying consolidated financial statements include our accounts and those of our consolidated subsidiaries and VIEs. Intercompany amounts have been eliminated in consolidation. Entities not deemed to be VIEs are consolidated if we own a majority of the voting securities or interests or hold the general partnership interest, except in those instances in which the minority voting interest owner or limited partner can remove us as general partner without cause, dissolve the partnership without cause or effectively participate through substantive participative rights. Substantive participative rights include the ability to select, terminate and set compensation of the investee’s management, if applicable, and the ability to participate in capital and operating decisions of the investee, including budgets, in the ordinary course of business. We invest in entities with varying structures, many of which do not have voting securities or interests, such as general partnerships, limited partnerships, and limited liability companies. In many of these structures, control of the entity rests with the general partners or managing members, while other members hold passive interests. The general partner or managing member may hold anywhere from a relatively small percentage of the total financial interests to a majority of the financial interests. For entities not deemed to be VIEs, where we serve as the sole general partner or managing member, we are considered to have the controlling financial interest and therefore the entity is consolidated, regardless of our financial interest percentage, unless there are other limited partners or investing members that can remove us as general partner without cause, dissolve the partnership without cause or effectively participate through substantive participative rights. In those circumstances where we, as majority controlling interest owner, can be removed without cause or cannot cause the entity to take actions that are significant in the ordinary course of business, because such actions could be vetoed by the minority controlling interest owner, we do not consolidate the entity. When we consolidate entities other than securitization VIEs, the third party ownership interests are reflected as non-controlling interests in consolidated subsidiaries, a separate component of equity, in our consolidated balance sheet. When we consolidate securitization VIEs, the third party ownership interests are reflected as VIE liabilities in our consolidated balance sheet because the beneficial interests payable to these third parties are legally issued in the form of debt. Our presentation of net income attributes earnings to controlling and non-controlling interests. |
Variable Interest Entities | Variable Interest Entities In addition to the securitization VIEs, we have financed pools of our loans through collateralized loan obligations (“CLOs”) and a single asset securitization (“SASB”), which are considered VIEs. We also hold interests in certain other entities which are considered VIEs as the limited partners of those entities with equity at risk do not collectively possess (i) the right to remove the general partner or dissolve the partnership without cause or (ii) the right to participate in significant decisions made by the partnership. We evaluate all of our interests in VIEs for consolidation. When our interests are determined to be variable interests, we assess whether we are deemed to be the primary beneficiary of the VIE. The primary beneficiary of a VIE is required to consolidate the VIE. Accounting Standards Codification (“ASC”) 810, Consolidation , defines the primary beneficiary as the party that has both (i) the power to direct the activities of the VIE that most significantly impact its economic performance, and (ii) the obligation to absorb losses and the right to receive benefits from the VIE which could be potentially significant. We consider our variable interests as well as any variable interests of our related parties in making this determination. Where both of these factors are present, we are deemed to be the primary beneficiary and we consolidate the VIE. Where either one of these factors is not present, we are not the primary beneficiary and do not consolidate the VIE. To assess whether we have the power to direct the activities of a VIE that most significantly impact the VIE’s economic performance, we consider all facts and circumstances, including our role in establishing the VIE and our ongoing rights and responsibilities. This assessment includes: (i) identifying the activities that most significantly impact the VIE’s economic performance; and (ii) identifying which party, if any, has power over those activities. In general, the parties that make the most significant decisions affecting the VIE or have the right to unilaterally remove those decision makers are deemed to have the power to direct the activities of a VIE. The right to remove the decision maker in a VIE must be exercisable without cause for the decision maker to not be deemed the party that has the power to direct the activities of a VIE. To assess whether we have the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE, we consider all of our economic interests, including debt and equity investments, servicing fees and other arrangements deemed to be variable interests in the VIE. This assessment requires that we apply judgment in determining whether these interests, in the aggregate, are considered potentially significant to the VIE. Factors considered in assessing significance include: the design of the VIE, including its capitalization structure; subordination of interests; payment priority; relative share of interests held across various classes within the VIE’s capital structure; and the reasons why the interests are held by us. Our purchased investment securities include unrated and non-investment grade rated securities issued by securitization trusts. In certain cases, we may contract to provide special servicing activities for these trusts, or, as holder of the controlling class, we may have the right to name and remove the special servicer for these trusts. In our role as special servicer, we provide services on defaulted loans within the trusts, such as foreclosure or work-out procedures, as permitted by the underlying contractual agreements. In exchange for these services, we receive a fee. These rights give us the ability to direct activities that could significantly impact the trust’s economic performance. However, in those instances where an unrelated third party has the right to unilaterally remove us as special servicer without cause, we do not have the power to direct activities that most significantly impact the trust’s economic performance. We evaluated all of our positions in such investments for consolidation. For securitization VIEs in which we are determined to be the primary beneficiary, all of the underlying assets, liabilities and equity of the structures are recorded on our books, and the initial investment, along with any associated unrealized holding gains and losses, are eliminated in consolidation. Similarly, the interest income earned from these structures, as well as the fees paid by these trusts to us in our capacity as special servicer, are eliminated in consolidation. Further, a portion of the identified servicing intangible asset associated with the servicing fee streams, and the corresponding amortization or change in fair value of the servicing intangible asset, are also eliminated in consolidation. We perform ongoing reassessments of: (i) whether any entities previously evaluated under the majority voting interest framework have become VIEs, based on certain events, and therefore subject to the VIE consolidation framework, and (ii) whether changes in the facts and circumstances regarding our involvement with a VIE causes our consolidation conclusion regarding the VIE to change. We elect the fair value option for initial and subsequent recognition of the assets and liabilities of our consolidated securitization VIEs. Interest income and interest expense associated with these VIEs are no longer relevant on a standalone basis because these amounts are already reflected in the fair value changes. We have elected to present these items in a single line on our consolidated statements of operations. The residual difference shown on our consolidated statements of operations in the line item “Change in net assets related to consolidated VIEs” represents our beneficial interest in the VIEs. We separately present the assets and liabilities of our consolidated securitization VIEs as individual line items on our consolidated balance sheets. The liabilities of our consolidated securitization VIEs consist solely of obligations to the bondholders of the related trusts, and are thus presented as a single line item entitled “VIE liabilities.” The assets of our consolidated securitization VIEs consist principally of loans, but at times, also include foreclosed loans which have been temporarily converted into real estate owned (“REO”). These assets in the aggregate are likewise presented as a single line item entitled “VIE assets.” Loans comprise the vast majority of our securitization VIE assets and are carried at fair value due to the election of the fair value option. When an asset becomes REO, it is due to non-performance of the loan. Because the loan is already at fair value, the carrying value of an REO asset is also initially at fair value. Furthermore, when we consolidate a trust, any existing REO would be consolidated at fair value. Once an asset becomes REO, its disposition time is relatively short. As a result, the carrying value of an REO generally approximates fair value under GAAP. In addition to sharing a similar measurement method as the loans in a trust, the securitization VIE assets as a whole can only be used to settle the obligations of the consolidated VIE. The assets of our securitization VIEs are not individually accessible by the bondholders, which creates inherent limitations from a valuation perspective. Also creating limitations from a valuation perspective is our role as special servicer, which provides us very limited visibility, if any, into the performing loans of a trust. REO assets generally represent a very small percentage of the overall asset pool of a trust. In new issue trusts there are no REO assets. We estimate that REO assets constitute approximately 2% of our consolidated securitization VIE assets, with the remaining 98% representing loans. However, it is important to note that the fair value of our securitization VIE assets is determined by reference to our securitization VIE liabilities as permitted under Accounting Standard Update (“ASU”) 2014-13, Consolidation (Topic 810): Measuring the Financial Assets and the Financial Liabilities of a Consolidated Collateralized Financing Entity . In other words, our VIE liabilities are more reliably measurable than the VIE assets, resulting in our current measurement methodology which utilizes this value to determine the fair value of our securitization VIE assets as a whole. As a result, these percentages are not necessarily indicative of the relative fair values of each of these asset categories if the assets were to be valued individually. Due to our accounting policy election under ASU 2014-13, separately presenting two different asset categories would result in an arbitrary assignment of value to each, with one asset category representing a residual amount, as opposed to its fair value. However, as a pool, the fair value of the assets in total is equal to the fair value of the liabilities. For these reasons, the assets of our securitization VIEs are presented in the aggregate. |
Fair Value Option | Fair Value Option The guidance in ASC 825, Financial Instruments , provides a fair value option election that allows entities to make an irrevocable election of fair value as the initial and subsequent measurement attribute for certain eligible financial assets and liabilities. Unrealized gains and losses on items for which the fair value option has been elected are reported in earnings. The decision to elect the fair value option is determined on an instrument by instrument basis and must be applied to an entire instrument and is irrevocable once elected. Assets and liabilities measured at fair value pursuant to this guidance are required to be reported separately in our consolidated balance sheets from those instruments using another accounting method. We have elected the fair value option for certain eligible financial assets and liabilities of our consolidated securitization VIEs, residential loans held-for-investment, loans held-for-sale originated or acquired for future securitization and purchased CMBS issued by VIEs we could consolidate in the future. The fair value elections for VIE and securitization related items were made in order to mitigate accounting mismatches between the carrying value of the instruments and the related assets and liabilities that we consolidate at fair value. The fair value elections for residential loans held-for-investment were made in order to maintain consistency across all our residential loans. The fair value elections for mortgage loans held-for-sale were made due to the expected short-term holding period of these instruments. |
Fair Value Measurements | Fair Value Measurements We measure our mortgage-backed securities, investments of consolidated affordable housing fund, derivative assets and liabilities, domestic servicing rights intangible asset and any assets or liabilities where we have elected the fair value option at fair value. When actively quoted observable prices are not available, we either use implied pricing from similar assets and liabilities or valuation models based on net present values of estimated future cash flows, adjusted as appropriate for liquidity, credit, market and/or other risk factors. As discussed above, we measure the assets and liabilities of consolidated securitization VIEs at fair value pursuant to our election of the fair value option. The securitization VIEs in which we invest are “static”; that is, no reinvestment is permitted, and there is no active management of the underlying assets. In determining the fair value of the assets and liabilities of the securitization VIEs, we maximize the use of observable inputs over unobservable inputs. Refer to Note 21 for further discussion regarding our fair value measurements. Valuation Process We have valuation control processes in place to validate the fair value of the Company’s financial assets and liabilities measured at fair value including those derived from pricing models. These control processes are designed to assure that the values used for financial reporting are based on observable inputs wherever possible. In the event that observable inputs are not available, the control processes are designed to assure that the valuation approach utilized is appropriate and consistently applied and the assumptions are reasonable. Pricing Verification —We use recently executed transactions, other observable market data such as exchange data, broker/dealer quotes, third party pricing vendors and aggregation services for validating the fair values generated using valuation models. Pricing data provided by approved external sources is evaluated using a number of approaches; for example, by corroborating the external sources’ prices to executed trades, analyzing the methodology and assumptions used by the external source to generate a price and/or by evaluating how active the third party pricing source (or originating sources used by the third party pricing source) is in the market. Unobservable Inputs —Where inputs are not observable, we review the appropriateness of the proposed valuation methodology to ensure it is consistent with how a market participant would arrive at the unobservable input. The valuation methodologies utilized in the absence of observable inputs may include extrapolation techniques and the use of comparable observable inputs. Any changes to the valuation methodology will be reviewed by our management to ensure the changes are appropriate. The methods used may produce a fair value calculation that is not indicative of net realizable value or reflective of future fair values. Furthermore, while we anticipate that our valuation methods are appropriate and consistent with other market participants, the use of different methodologies, or assumptions, to determine the fair value could result in a different estimate of fair value at the reporting date. Fair Value on a Recurring Basis We determine the fair value of our financial assets and liabilities measured at fair value on a recurring basis as follows: Loans held-for-sale, commercial We measure the fair value of our commercial mortgage loans held-for-sale using a discounted cash flow analysis unless observable market data (i.e., securitized pricing) is available. A discounted cash flow analysis requires management to make estimates regarding future interest rates and credit spreads. The most significant of these inputs relates to credit spreads and is unobservable. Thus, we have determined that the fair values of mortgage loans valued using a discounted cash flow analysis should be classified in Level III of the fair value hierarchy, while mortgage loans valued using securitized pricing should be classified in Level II of the fair value hierarchy. Mortgage loans classified in Level III are transferred to Level II if securitized pricing becomes available. Loans held-for-sale, residential We measure the fair value of our residential loans held-for-sale based on the net present value of expected future cash flows using a combination of observable and unobservable inputs. Observable market participant assumptions include pricing related to trades of residential loans with similar characteristics. Unobservable inputs include the expectation of future cash flows, which involves judgments about the underlying collateral, the creditworthiness of the borrower, estimated prepayment speeds, estimated future credit losses, forward interest rates, investor yield requirements and certain other factors. At each measurement date, we consider both the observable and unobservable valuation inputs in the determination of fair value. However, given the significance of the unobservable inputs, these loans have been classified within Level III. RMBS RMBS are valued utilizing observable and unobservable market inputs. The observable market inputs include recent transactions, broker quotes and vendor prices (“market data”). However, given the implied price dispersion amongst the market data, the fair value determination for RMBS has also utilized significant unobservable inputs in discounted cash flow models including prepayments, default and severity estimates based on the recent performance of the collateral, the underlying collateral characteristics, industry trends, as well as expectations of macroeconomic events (e.g., housing price curves, interest rate curves, etc.). At each measurement date, we consider both the observable and unobservable valuation inputs in the determination of fair value. However, given the significance of the unobservable inputs these securities have been classified within Level III. CMBS CMBS are valued utilizing both observable and unobservable market inputs. These factors include projected future cash flows, ratings, subordination levels, vintage, remaining lives, credit issues, recent trades of similar securities and the spreads used in the prior valuation. We obtain current market spread information where available and use this information in evaluating and validating the market price of all CMBS. Depending upon the significance of the fair value inputs used in determining these fair values, these securities are classified in either Level II or Level III of the fair value hierarchy. CMBS may shift between Level II and Level III of the fair value hierarchy if the significant fair value inputs used to price the CMBS become or cease to be observable. Equity security The equity security is publicly registered and traded in the U.S. and its market price is listed on the London Stock Exchange. The security has been classified within Level I. Woodstar Fund Investments The fair value of investments held by the Woodstar Fund is determined based on observable and unobservable market inputs. The initial fair value of the Woodstar Fund’s investments at its November 5, 2021 establishment date was determined by reference to the purchase price paid by third party investors, which was consistent with both a recent external appraisal as well as our extensive marketing efforts to sell interests in the Woodstar Fund, plus working capital. The fair value of the Woodstar Fund’s investments as of December 31, 2022 and 2023 was determined by reference to an external appraisal as of those dates. For the properties, the third party appraisals applied the income capitalization approach with corroborative support from the sales comparison approach. The cost approach was not employed, as it is typically not emphasized by potential investors in the multifamily affordable housing sector. The income capitalization approach estimates an income stream for a property over a 10-year period and discounts this income plus a reversion (presumed sale) into a present value at a risk adjusted discount rate. Terminal capitalization rates and discount rates utilized in this approach are derived from market transactions as well as other financial and industry data. For secured financing, the third party appraisal discounted the contractual cash flows at the interest rate at which such arrangements would bear if executed in the current market. The fair value of investment level working capital is assumed to approximate carrying value due to its primarily short-term monetary nature. The fair value of interest rate derivatives is determined using the methodology described in the Derivatives discussion below. Given the significance of the unobservable inputs used in the respective valuations, the Woodstar Fund’s investments have been classified within Level III of the fair value hierarchy. Domestic servicing rights The fair value of this intangible is determined using discounted cash flow modeling techniques which require management to make estimates regarding future net servicing cash flows, including forecasted loan defeasance, control migration, delinquency and anticipated maturity defaults which are calculated assuming a debt yield at which default occurs. Since the most significant of these inputs are unobservable, we have determined that the fair values of this intangible in its entirety should be classified in Level III of the fair value hierarchy. Derivatives The valuation of derivative contracts are determined using widely accepted valuation techniques including discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market based inputs, including interest rate curves, spot and market forward points and implied volatilities. The fair values of interest rate swaps are determined using the market standard methodology of netting the discounted future fixed cash payments and the discounted expected variable cash receipts. The variable cash receipts are based on an expectation of future interest rates (forward curves) derived from observable market interest rate curves. We incorporate credit valuation adjustments to appropriately reflect both our own non-performance risk and the respective counterparty’s non-performance risk in the fair value measurements. In adjusting the fair value of our derivative contracts for the effect of non-performance risk, we have considered the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts, and guarantees. The valuation of over the counter derivatives are determined using discounted cash flows based on Overnight Index Swap (“OIS”) rates. Fully collateralized trades are discounted using OIS with no additional economic adjustments to arrive at fair value. Uncollateralized or partially collateralized trades are also discounted at OIS, but include appropriate economic adjustments for funding costs (i.e., a LIBOR or SOFR OIS basis adjustment to approximate uncollateralized cost of funds) and credit risk. For credit instruments, fair value is determined based on changes in the relevant indices from the date of initiation of the instrument to the reporting date, as these changes determine the amount of any future cash settlement between us and the counterparty. These indices are considered Level II inputs as they are directly observable. Although we have determined that the majority of the inputs used to value our derivatives fall within Level II of the fair value hierarchy, the credit valuation adjustments associated with our derivatives utilize Level III inputs, such as estimates of current credit spreads to evaluate the likelihood of default by us and our counterparties. However, as of December 31, 2023 and 2022, we have assessed the significance of the impact of the credit valuation adjustments on the overall valuation of our derivative positions and have determined that the credit valuation adjustments are not significant to the overall valuation of our derivatives. As a result, we have determined that our derivative valuations in their entirety are classified in Level II of the fair value hierarchy. Liabilities of consolidated VIEs Our consolidated VIE liabilities generally represent bonds that are not owned by us. The majority of these are either traded in the marketplace or can be analogized to similar securities that are traded in the marketplace. For these liabilities, pricing is considered to be Level II, where the valuation is based upon quoted prices for similar instruments traded in active markets. We generally utilize third party pricing service providers for valuing these liabilities. In order to determine whether to utilize the valuations provided by third parties, we conduct an ongoing evaluation of their valuation methodologies and processes, as well as a review of the individual valuations themselves. In evaluating third party pricing for reasonableness, we consider a variety of factors, including market transaction information for the particular bond, market transaction information for bonds within the same trust, market transaction information for similar bonds, the bond’s ratings and the bond’s subordination levels. For the minority portion of our consolidated VIE liabilities which consist of unrated or non-investment grade bonds that are not owned by us, pricing may be either Level II or Level III. If independent third party pricing similar to that noted above is available, we consider the valuation to be Level II. If such third party pricing is not available, the valuation is generated from model-based techniques that use significant unobservable assumptions, and we consider the valuation to be Level III. For VIE liabilities classified as Level III, valuation is determined based on discounted expected future cash flows which take into consideration expected duration and yields based on market transaction information, ratings, subordination levels, vintage and current market spread. VIE liabilities may shift between Level II and Level III of the fair value hierarchy if the significant fair value inputs used to price the VIE liabilities become or cease to be observable. Assets of consolidated VIEs The securitization VIEs in which we invest are “static”; that is, no reinvestment is permitted, and there is no active management of the underlying assets. In determining the fair value of the assets of the VIE, we maximize the use of observable inputs over unobservable inputs. The individual assets of a VIE are inherently incapable of precise measurement given their illiquid nature and the limitations on available information related to these assets. Because our methodology for valuing these assets does not value the individual assets of a VIE, but rather uses the value of the VIE liabilities as an indicator of the fair value of VIE assets as a whole, we have determined that our valuations of VIE assets in their entirety should be classified in Level III of the fair value hierarchy. Fair Value Only Disclosed We determine the fair value of our financial instruments and assets where fair value is disclosed as follows: Loans held-for-investment We estimate the fair values of our loans not carried at fair value on a recurring basis by discounting their expected cash flows at a rate we estimate would be demanded by the market participants that are most likely to buy our loans. The expected cash flows used are generally the same as those used to calculate our level yield income in the financial statements. Since these inputs are unobservable, we have determined that the fair value of these loans in their entirety would be classified in Level III of the fair value hierarchy. HTM debt securities We estimate the fair value of our mandatorily redeemable preferred equity interests in commercial real estate companies and infrastructure bonds using the same methodology described for our loans held-for-investment. We estimate the fair value of our HTM CMBS using the same methodology described for our CMBS carried at fair value on a recurring basis. Secured financing agreements, CLOs and SASB The fair value of the secured financing agreements, CLOs and SASB are determined by discounting the contractual cash flows at the interest rate we estimate such arrangements would bear if executed in the current market. We have determined that our valuation of these instruments should be classified in Level III of the fair value hierarchy. Unsecured senior notes The fair value of our unsecured senior notes is determined based on the last available bid price for the respective notes in the current market. As these prices represent observable market data, we have determined that the fair value of these instruments would be classified in Level II of the fair value hierarchy. |
Business Combinations | Business Combinations Under ASC 805, Business Combinations , the acquirer in a business combination must recognize, with certain exceptions, the fair values of assets acquired, liabilities assumed, and non-controlling interests when the acquisition constitutes a change in control of the acquired entity. As goodwill is calculated as a residual, all goodwill of the acquired business, not just the acquirer’s share, is recognized under this “full goodwill” approach. During the measurement period, a period which shall not exceed one year, we prospectively adjust the provisional amounts recognized to reflect new information obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the measurement of the amounts recognized. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include cash in banks and short‑term investments. Short‑term investments are comprised of highly liquid instruments with original maturities of three months or less. The Company maintains its cash and cash equivalents in multiple financial institutions and at times these balances exceed federally insurable limits. |
Restricted Cash | Restricted Cash |
Loans Held-for-Investment | Loans Held-for-Investment Loans that are held for investment (“HFI”) are carried at cost, net of unamortized acquisition premiums or discounts, loan fees and origination costs, as applicable, and net of credit loss allowances as discussed below, unless we have elected to apply the fair value option at purchase. |
Loans Held-For-Sale | Loans Held-For-Sale Our loans that we intend to sell or liquidate in the short-term are classified as held-for-sale and are carried at the lower of amortized cost or fair value, unless we have elected to apply the fair value option at origination or purchase. We periodically enter into derivative financial instruments to hedge unpredictable changes in fair value of loans held-for-sale, including changes resulting from both interest rates and credit quality. Because these derivatives are not designated, changes in their fair value are recorded in earnings. In order to best reflect the results of the hedged loan portfolio in earnings, we have elected the fair value option for these loans. As a result, changes in the fair value of the loans are also recorded in earnings. |
Investment Securities | Investment Securities We designate our debt investment securities as held-to-maturity (“HTM”), available-for-sale (“AFS”), or trading depending on our investment strategy and ability to hold such securities to maturity. HTM debt securities where we have not elected to apply the fair value option are stated at cost plus any premiums or discounts, which are amortized or accreted through the consolidated statements of operations using the effective interest method. Debt securities we (i) do not hold for the purpose of selling in the near-term, or (ii) may dispose of prior to maturity, are classified as AFS and are carried at fair value in the accompanying financial statements. Unrealized gains or losses on AFS debt securities where we have not elected the fair value option are reported as a component of accumulated other comprehensive income (“AOCI”) in stockholders’ equity. Our HTM and AFS debt securities are also subject to credit loss allowances as discussed below. Our only equity investment security is carried at fair value, with unrealized holding gains and losses recorded in earnings. |
Credit Losses | Credit Losses Loans and Debt Securities Measured at Amortized Cost ASC 326, Financial Instruments – Credit Losses , became effective for the Company on January 1, 2020. ASC 326 mandates the use of a current expected credit loss model (“CECL”) for estimating future credit losses of certain financial instruments measured at amortized cost, instead of the “incurred loss” credit model previously required under GAAP. The CECL model requires the consideration of possible credit losses over the life of an instrument as opposed to only estimating credit losses upon the occurrence of a discrete loss event under the previous “incurred loss” methodology. The CECL model applies to our HFI loans and our HTM debt securities which are carried at amortized cost, including future funding commitments and accrued interest receivable related to those loans and securities. However, as permitted by ASC 326, we have elected not to measure an allowance for credit losses on accrued interest receivable (which is classified separately on our consolidated balance sheet), but rather write off in a timely manner by reversing interest income and/or cease accruing interest that would likely be uncollectible. As we do not have a history of realized credit losses on our HFI loans and HTM securities, we have subscribed to third party database services to provide us with historical industry losses for both commercial real estate and infrastructure loans. Using these losses as a benchmark, we determine expected credit losses for our loans and securities on a collective basis within our commercial real estate and infrastructure portfolios. See Note 5 for further discussion of our methodologies. We also evaluate each loan and security measured at amortized cost for credit deterioration at least quarterly. Credit deterioration occurs when it is deemed probable that we will not be able to collect all amounts due according to the contractual terms of the loan or security. If a loan or security is considered to be credit deteriorated, we depart from the industry loss rate approach described above and determine the credit loss allowance as any excess of the amortized cost basis of the loan or security over (i) the present value of expected future cash flows discounted at the contractual effective interest rate or (ii) the fair value of the collateral, if repayment is expected solely from the collateral. Available-for-Sale Debt Securities Separate provisions of ASC 326 apply to our AFS debt securities, which are carried at fair value with unrealized gains and losses reported as a component of AOCI. We are required to establish an initial credit loss allowance for those securities that are purchased with credit deterioration (“PCD”) by grossing up the amortized cost basis of each security and providing an offsetting credit loss allowance for the difference between expected cash flows and contractual cash flows, both on a present value basis. Subsequently, cumulative adverse changes in expected cash flows on our AFS debt securities are recognized currently as an increase to the allowance for credit losses. However, the allowance is limited to the amount by which the AFS debt security’s amortized cost exceeds its fair value. Favorable changes in expected cash flows are first recognized as a decrease to the allowance for credit losses (recognized currently in earnings). Such changes would be recognized as a prospective yield adjustment only when the allowance for credit losses is reduced to zero. A change in expected cash flows that is attributable solely to a change in a variable interest reference rate does not result in a credit loss and is accounted for as a prospective yield adjustment. |
Properties Held-For-Investment | Properties Held-For-Investment Properties, net, as reported on our consolidated balance sheets, consist of commercial real estate properties held-for-investment and are recorded at cost, less accumulated depreciation and impairments, if any. Properties consist primarily of land, buildings and improvements. Land is not depreciated, and buildings and improvements are depreciated on a straight-line basis over their estimated useful lives. Ordinary repairs and maintenance are expensed as incurred; major replacements and betterments are capitalized and depreciated on a straight-line basis over their estimated useful lives. We review properties for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. Recoverability is determined by comparing the carrying amount of the property to the undiscounted future net cash flows it is expected to generate. If such carrying amount exceeds the expected undiscounted future net cash flows, we adjust the carrying amount of the property to its estimated fair value. |
Properties Held-For-Sale | Properties Held-For-Sale |
Investments in Unconsolidated Entities | Investments in Unconsolidated Entities We own non‑controlling equity interests in various privately‑held partnerships and limited liability companies. Unless we elect the fair value option under ASC 825, we use the fair value practicability election described below to account for investments in which our interest is so minor that we have virtually no influence over the underlying investees. We use the equity method to account for all other non‑controlling interests in partnerships and limited liability companies. Equity method investments are initially recorded at cost and subsequently adjusted for our share of income or loss, as well as contributions made or distributions received. Our other equity investments set forth in Note 9 do not have readily determinable fair values. Therefore, we have elected the fair value practicability exception under ASC 321, Equity Securities , whereby we measure those investments within its scope at cost, less any impairment, plus or minus observable price changes from orderly transactions of identical or similar investments of the same issuer. We review our equity method and other investments not subject to the fair value practicability election for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. For our investments under the fair value practicability election, we perform a qualitative assessment to identify impairment at the end of each reporting period. An impairment loss is measured based on the excess of the carrying amount of an investment over its estimated fair value. Impairment analyses are based on current plans, intended holding periods, estimated fair values of underlying assets and available information at the time the analyses are prepared. |
Goodwill | Goodwill Goodwill is not amortized, but rather tested for impairment annually or more frequently if events or changes in circumstances indicate potential impairment. Goodwill at December 31, 2023 and 2022 represents the excess of the consideration paid over the fair value of net assets acquired in connection with the acquisitions of LNR Property LLC (“LNR”) in April 2013 and the Infrastructure Lending Segment in September and October 2018. In testing goodwill for impairment, we follow ASC 350, Intangibles—Goodwill and Other , which permits a qualitative assessment of whether it is more likely than not that the fair value of a reporting unit is less than its carrying value including goodwill. If the qualitative assessment determines that it is not more likely than not that the fair value of a reporting unit is less than its carrying value including goodwill, then no impairment is determined to exist for the reporting unit. However, if the qualitative assessment determines that it is more likely than not that the fair value of the reporting unit is less than its carrying value including goodwill, or we choose not to perform the qualitative assessment, then we compare the fair value of that reporting unit with its carrying value, including goodwill. If the carrying value of a reporting unit exceeds its fair value, goodwill is considered impaired with the impairment loss measured as the excess of the reporting unit’s carrying value (inclusive of goodwill) over its fair value. |
Servicing Rights Intangibles | Servicing Rights Intangibles |
Lease Intangibles | Lease Intangibles |
Leases | Leases ASC 842 , Leases , which we adopted January 1, 2019, establishes a right-of-use model for lessee accounting which results in the recognition of most leased assets and lease liabilities on the balance sheet of the lessee. Lessor accounting was not significantly affected by this ASC. We elected not to apply the recognition provisions of ASC 842 to short-term leases, which have original lease terms of 12 months or less. As a lessor, we elected not to separate nonlease components, such as reimbursements from tenants for common area maintenance (“CAM”), from lease components for all classes of underlying assets, and continue to recognize such nonlease components ratably in rental income. We also elected to continue to exclude from rental income all sales, use and other similar taxes collected from lessees. As required by ASC 842, we do not record as revenues and expenses lessor costs (such as property taxes) paid directly by the lessees. All of our leases, as both lessor and lessee, are currently classified as operating leases, which are subject to straight-line revenue and expense recognition. |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities We record all derivatives on our consolidated balance sheets at fair value. The accounting for changes in the fair value of derivatives depends on whether we have elected to designate a derivative in a hedging relationship and have satisfied the criteria necessary to apply hedge accounting under GAAP. Derivatives designated and qualifying as a hedge of the exposure to changes in the fair value of an asset, liability, or firm commitment attributable to a particular risk, such as interest rate risk, are considered fair value hedges. Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Hedge accounting generally provides for the matching of the timing of gain or loss recognition on the hedging instrument with the recognition of the changes in the fair value of the hedged asset or liability that are attributable to the hedged risk in a fair value hedge or the earnings effect of the hedged forecasted transactions in a cash flow hedge. We regularly enter into derivative contracts that are intended to economically hedge certain of our risks, even though the transactions may not qualify for, or we may not elect to pursue, hedge accounting. In such cases, changes in the fair value of the derivatives are recorded in earnings. We classify cash flows related to purchases and early terminations of derivatives that serve as economic hedges as investing activities in our consolidated statements of cash flows. Generally, our derivatives are subject to master netting arrangements, though we elect to present all derivative assets and liabilities on a gross basis within our consolidated balance sheets. |
Convertible Senior Notes | Convertible Senior Notes Effective January 1, 2021, the Company early adopted ASU 2020-06 Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging— Contracts in Entity’s Own Equity (Subtopic 815-40), which 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, our convertible senior notes (the “Convertible Notes”), which were previously accounted for as having separate liability and equity components, are now accounted for as a single liability measured at amortized cost. The standard was adopted using the modified retrospective method of transition, which resulted in a cumulative decrease to additional paid-in capital of $3.7 million, partially offset by a cumulative decrease to accumulated deficit of $2.2 million as of January 1, 2021. |
Revenue Recognition | Revenue Recognition Interest Income Interest income on performing loans and financial instruments is accrued based on the outstanding principal amount and contractual terms of the instrument. For loans where we do not elect the fair value option, origination fees and direct loan origination costs are also recognized in interest income over the loan term as a yield adjustment using the effective interest method. When we elect the fair value option, origination fees and direct loan costs are recorded directly in income and are not deferred. Discounts or premiums associated with the purchase of non-performing loans and investment securities are amortized or accreted into interest income as a yield adjustment on the effective interest method, based on expected cash flows through the expected maturity date of the investment. On at least a quarterly basis, we review and, if appropriate, make adjustments to our cash flow projections. We cease accruing interest on non-performing loans at the earlier of (i) the loan becoming significantly past due or (ii) management concluding that a full recovery of all interest and principal is doubtful. Interest income on non-accrual loans in which management expects a full recovery of the loan’s outstanding principal balance is only recognized when received in cash. If full recovery of principal is doubtful or if collection of interest is less than probable, the cost recovery method is applied whereby any cash received is applied to the outstanding principal balance of the loan. A non-accrual loan is returned to accrual status at such time as the loan becomes contractually current and management believes all future principal and interest will be received according to the contractual loan terms. For loans acquired with deteriorated credit quality, interest income is only recognized to the extent that our estimate of undiscounted expected principal and interest exceeds our investment in the loan. Such excess, if any, is recognized as interest income on a level-yield basis over the life of the loan. Upon the sale of loans or securities which are not accounted for pursuant to the fair value option, the excess (or deficiency) of net proceeds over the net carrying value of such loans or securities is recognized as a realized gain (loss). Servicing Fees We typically seek to be the special servicer on CMBS transactions in which we invest. When we are appointed to serve in this capacity, we earn special servicing fees from the related activities performed, which consist primarily of overseeing the workout of under-performing and non-performing loans underlying the CMBS transactions. These fees are recognized in income in the period in which the services are performed and the revenue recognition criteria have been met. Rental Income Rental income is recognized when earned from tenants. For leases that provide rent concessions or fixed escalations over the lease term, rental income is recognized on a straight-line basis over the noncancelable term of the lease. In net lease arrangements, costs reimbursable from tenants are recognized in rental income in the period in which the related expenses are incurred as we are generally the primary obligor with respect to purchasing goods and services for property operations. In instances where the tenant is responsible for property maintenance and repairs and contracts and settles such costs directly with third party service providers, we do not reflect those expenses in our consolidated statement of operations as the tenant is the primary obligor. |
Securitizations, Sales and Financing Arrangements | Securitizations, Sales and Financing Arrangements We periodically sell our financial assets, such as commercial mortgage loans, residential loans, CMBS, RMBS and other assets. In connection with these transactions, we may retain or acquire senior or subordinated interests in the related assets. Gains and losses on such transactions are recognized in accordance with ASC 860, Transfers and Servicing , which is based on a financial components approach that focuses on control. Under this approach, after a transfer of financial assets that meets the criteria for treatment as a sale—legal isolation, ability of transferee to pledge or exchange the transferred assets without constraint, and transferred control—an entity recognizes the financial assets it retains and any liabilities it has incurred, derecognizes the financial assets it has sold, and derecognizes liabilities when extinguished. We determine the gain or loss on sale of the assets by allocating the carrying value of the sold asset between the sold asset and the interests retained based on their relative fair values, as applicable. The gain or loss on sale is the difference between the cash proceeds from the sale and the amount allocated to the sold asset. If the sold asset is being accounted for pursuant to the fair value option, there is no gain or loss. |
Deferred Financing Costs | Deferred Financing Costs Costs incurred in connection with debt issuance are capitalized and amortized to interest expense over the terms of the respective debt agreements. Such costs are presented as a direct deduction from the carrying value of the related debt liability. |
Acquisition and Investment Pursuit Costs | Acquisition and Investment Pursuit Costs Costs incurred in connection with acquisitions of investments, loans and businesses, as well as in pursuing unsuccessful acquisitions and investments, are recorded within acquisition and investment pursuit costs in our consolidated statements of operations when incurred. Costs incurred in connection with acquisitions of real estate not accounted for as business combinations are capitalized within the purchase price. These costs reflect services performed by third parties and principally include due diligence and legal services. |
Share-Based Payments | Share‑Based Payments The fair value of the restricted stock awards (“RSAs”) or restricted stock units (“RSUs”) granted is recorded as expense on a straight‑line basis over the vesting period for the award, with an offsetting increase in stockholders’ equity. The fair value is determined based upon the stock price on the grant date. The Company recognizes compensation expense related to its Employee Stock Purchase Program (“ESPP”) based on the estimated fair value of the discounted purchase options granted to the participants as of the beginning of each quarterly offering period determined using the Black-Scholes option pricing model. |
Foreign Currency Translation | Foreign Currency Translation Our assets and liabilities denominated in foreign currencies are translated into U.S. dollars using foreign currency exchange rates at the end of the reporting period. Income and expenses are translated at the average exchange rates for each reporting period. The effects of translating the assets, liabilities and income of our foreign investments held by entities with a U.S. dollar functional currency are included in foreign currency gain (loss) in the consolidated statements of operations. The effects of translating the assets, liabilities and income of our foreign investments held by entities with functional currencies other than the U.S. dollar, if any, are included in OCI. Realized foreign currency gains and losses and changes in the value of foreign currency denominated monetary assets and liabilities are included in the determination of net income and are reported as foreign currency gain (loss) in our consolidated statements of operations. |
Income Taxes | Income Taxes The Company has elected to be taxed as a REIT under the Code. The Company is subject to federal income taxation at corporate rates on its REIT taxable income, however, the Company is allowed a deduction for the amount of dividends paid to its stockholders in arriving at its REIT taxable income. As a result, distributed net income of the Company is subjected to taxation at the stockholder level only. The Company intends to continue operating in a manner that will permit it to maintain its qualification as a REIT for tax purposes. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The Company evaluates the realizability of its deferred tax assets and recognizes a valuation allowance if, based on the available evidence, both positive and negative, it is more likely than not that some portion or all of its deferred tax assets will not be realized. When evaluating the realizability of its deferred tax assets, the Company considers, among other matters, estimates of expected future taxable income, nature of current and cumulative losses, existing and projected book/tax differences, tax planning strategies available, and the general and industry specific economic outlook. This realizability analysis is inherently subjective, as it requires the Company to forecast its business and general economic environment in future periods. We recognize tax positions in the financial statements only when it is more likely than not that, based on the technical merits of the tax position, the position will be sustained upon examination by the relevant taxing authority. A tax position is measured at the largest amount of benefit that will more likely than not be realized upon settlement. If, as a result of new events or information, a recognized tax position no longer is considered more likely than not to be sustained upon examination, a liability is established for the unrecognized benefit with a corresponding charge to income tax expense in our consolidated statement of operations. We report interest and penalties, if any, related to income tax matters as a component of income tax expense. |
Earnings Per Share | Earnings Per Share We present both basic and diluted earnings per share (“EPS”) amounts in our financial statements. Basic EPS excludes dilution and is computed by dividing income available to common stockholders by the weighted-average number of shares of common stock outstanding for the period. Diluted EPS reflects the maximum potential dilution that could occur from (i) our share-based compensation, consisting of unvested RSAs and RSUs and any outstanding discounted share purchase options under the ESPP, (ii) shares contingently issuable to our Manager, (iii) the conversion options associated with our Convertible Notes (see Notes 12 and 19) and (iv) non-controlling interests that are redeemable with our common stock (see Note 18). Potential dilutive shares are excluded from the calculation if they have an anti-dilutive effect in the period. Nearly all of the Company’s unvested RSUs and RSAs contain rights to receive non-forfeitable dividends and thus are participating securities. In addition, the non-controlling interests that are redeemable with our common stock are considered participating securities because they earn a preferred return indexed to the dividend rate on our common stock (see Note 18). Due to the existence of these participating securities, the two-class method of computing EPS is required, unless another method is determined to be more dilutive. Under the two-class method, undistributed earnings are reallocated between shares of common stock and participating securities. For the years ended December 31, 2023, 2022 and 2021, the two-class method resulted in the most dilutive EPS calculation. |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments that potentially subject us to concentrations of credit risk consist primarily of cash investments, CMBS, RMBS, loan investments and interest receivable. We may place cash investments in excess of insured amounts with high quality financial institutions. We perform an ongoing analysis of credit risk concentrations in our investment portfolio by evaluating exposure to various counterparties, markets, underlying property types, contract terms, tenant mix and other credit metrics. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of revenues and expenses during the reporting periods. The most significant and subjective estimate that we make is the projection of cash flows we expect to receive on our investments, which has a significant impact on the amount of income that we record and/or disclose. In addition, the fair value of assets and liabilities that are estimated using a discounted cash flows method is significantly impacted by the rates at which we estimate market participants would discount the expected cash flows. Amounts ultimately realized from our investments may vary significantly from the fair values presented. We believe the estimates and assumptions underlying our consolidated financial statements are reasonable and supportable based on the information available as of December 31, 2023. Actual results may ultimately differ from those estimates. |
Recent Accounting Developments | Recent Accounting Developments On November 27, 2023, the Financial Accounting Standards Board (“FASB”) issued ASU 2023-07, Segment Reporting (Topic 280) - Improvements to Reportable Segment Disclosures , which improves reportable segment disclosure requirements primarily through enhanced disclosures about significant segment expenses. This ASU is effective for our fiscal year ending December 31, 2024 and interim quarters beginning in 2025, with early adoption permitted. It must be retrospectively applied to all prior periods presented. We do not expect this ASU will have a material impact on the Company’s reportable segment disclosures, as it already reports significant items within revenues, costs and expenses and other income (loss) categories by segment. On December 14, 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740) - Improvements to Income Tax Disclosures , which improves income tax disclosures by primarily requiring (1) consistent categories and greater disaggregation of information in the rate reconciliation and (2) income taxes paid disaggregated by jurisdiction. This ASU is effective for our fiscal year ending December 31, 2025, with early adoption permitted. It is to be applied on a prospective basis, with retrospective application permitted. We do not expect this ASU will have a material impact on the Company’s income tax disclosures. |
Restricted Cash (Tables)
Restricted Cash (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of Restricted Cash | A summary of our restricted cash as of December 31, 2023 and 2022 is as follows (amounts in thousands): As of December 31, 2023 2022 Cash collateral for derivative financial instruments $ 80,219 $ 69,607 Cash restricted by lender 34,450 49,727 Funds held on behalf of borrowers and tenants 1,300 1,255 Other restricted cash 1,343 483 $ 117,312 $ 121,072 |
Loans (Tables)
Loans (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Receivables [Abstract] | |
Schedule of Investments in Mortgages and Loans by Subordination Class | The following tables summarize our investments in mortgages and loans as of December 31, 2023 and 2022 (dollars in thousands): December 31, 2023 Carrying Face Weighted Weighted Loans held-for-investment: Commercial loans: First mortgages (3) $ 14,956,646 $ 15,005,827 9.0 % 2.8 Subordinated mortgages (4) 76,560 76,882 14.8 % 2.2 Mezzanine loans (3) 273,146 274,899 13.7 % 2.7 Other 71,012 71,843 9.6 % 1.8 Total commercial loans 15,377,364 15,429,451 Infrastructure first priority loans 2,505,924 2,550,244 9.5 % 3.9 Total loans held-for-investment 17,883,288 17,979,695 Loans held-for-sale: Residential, fair value option 2,604,594 2,909,126 4.5 % N/A (5) Commercial, fair value option 41,043 45,400 5.5 % 5.2 Total loans held-for-sale 2,645,637 2,954,526 Total gross loans 20,528,925 $ 20,934,221 Credit loss allowances: Commercial loans held-for-investment (298,775) Infrastructure loans held-for-investment (10,264) Total allowances (309,039) Total net loans $ 20,219,886 December 31, 2022 Loans held-for-investment: Commercial loans: First mortgages (3) $ 15,562,452 $ 15,648,358 7.9 % 3.3 Subordinated mortgages (4) 71,100 72,118 13.6 % 3.2 Mezzanine loans (3) 445,363 442,339 12.9 % 1.9 Other 58,393 59,393 8.2 % 1.7 Total commercial loans 16,137,308 16,222,208 Infrastructure first priority loans 2,363,544 2,395,762 8.6 % 3.9 Total loans held-for-investment 18,500,852 18,617,970 Loans held-for-sale: Residential, fair value option 2,763,458 3,092,915 4.5 % N/A (5) Commercial, fair value option 21,136 23,900 5.7 % 8.6 Total loans held-for-sale 2,784,594 3,116,815 Total gross loans 21,285,446 $ 21,734,785 Credit loss allowances: Commercial loans held-for-investment (88,801) Infrastructure loans held-for-investment (10,612) Total allowances (99,413) Total net loans $ 21,186,033 ______________________________________________________________________________________________________________________ (1) Calculated using applicable index rates as of December 31, 2023 and 2022 for variable rate loans and excludes loans for which interest income is not recognized. (2) Represents the WAL of each respective group of loans, excluding loans for which interest income is not recognized, as of the respective balance sheet date. For commercial loans held-for-investment, the WAL is calculated assuming all extension options are exercised by the borrower, although our loans may be repaid prior to such date. For infrastructure loans, the WAL is calculated using the amounts and timing of future principal payments, as projected at origination or acquisition of each loan. (3) First mortgages include first mortgage loans and any contiguous mezzanine loan components because as a whole, the expected credit quality of these loans is more similar to that of a first mortgage loan. The application of this methodology resulted in mezzanine loans with carrying values of $1.0 billion and $1.3 billion being classified as first mortgages as of December 31, 2023 and 2022, respectively. (4) Subordinated mortgages include B-Notes and junior participation in first mortgages where we do not own the senior A-Note or senior participation. If we own both the A-Note and B-Note, we categorize the loan as a first mortgage loan. (5) Residential loans have a weighted average remaining contractual life of 27.8 years and 28.8 years as of December 31, 2023 and 2022, respectively. |
Schedule of Variable Rate Loans Held-for-Investment | As of December 31, 2023, our variable rate loans held-for-investment, excluding loans for which interest income is not recognized, were as follows (dollars in thousands): December 31, 2023 Carrying Weighted-average Commercial loans $ 14,583,440 4.0 % Infrastructure loans 2,505,924 4.1 % Total variable rate loans held-for-investment $ 17,089,364 4.0 % |
Schedule of Risk Ratings by Class of Loan | The significant credit quality indicators for our loans measured at amortized cost, which excludes loans held-for-sale, were as follows as of December 31, 2023 (dollars in thousands): Term Loans Revolving Loans Total Credit As of December 31, 2023 2023 2022 2021 2020 2019 Prior Commercial loans: Credit quality indicator: LTV < 60% $ 321,465 $ 2,040,870 $ 2,979,413 $ 188,140 $ 937,355 $ 232,009 $ — $ 6,699,252 $ 24,939 LTV 60% - 70% 518,912 1,937,799 3,522,841 97,805 85,287 318,432 — 6,481,076 78,495 LTV > 70% 60,905 102,732 483,506 451,471 433,448 589,037 — 2,121,099 190,416 Credit deteriorated — — — — — 4,925 — 4,925 4,925 Defeased and other 14,374 41,705 — — — 14,933 — 71,012 — Total commercial $ 915,656 $ 4,123,106 $ 6,985,760 $ 737,416 $ 1,456,090 $ 1,159,336 $ — $ 15,377,364 $ 298,775 Infrastructure loans: Credit quality indicator: Power $ 441,646 $ — $ 106,343 $ 72,687 $ 276,795 $ 442,784 $ 3,213 $ 1,343,468 $ 4,099 Oil and gas 410,674 136,704 211,136 — 218,129 135,075 2,068 1,113,786 6,009 Other 48,670 — — — — — — 48,670 156 Total infrastructure $ 900,990 $ 136,704 $ 317,479 $ 72,687 $ 494,924 $ 577,859 $ 5,281 $ 2,505,924 $ 10,264 Loans held-for-sale 2,645,637 — Total gross loans $ 20,528,925 $ 309,039 |
Schedule of Activity in Allowance for Loan Losses | The following tables present the activity in our credit loss allowance for funded loans and unfunded commitments (amounts in thousands): Funded Commitments Credit Loss Allowance Loans Held-for-Investment Total Funded Loans Commercial Infrastructure Credit loss allowance at December 31, 2020 $ 69,611 $ 7,833 $ 77,444 Credit loss (reversal) provision, net (7,947) 12,580 4,633 Charge-offs (14,807) (1) — (14,807) Transfers (257) 257 — Credit loss allowance at December 31, 2021 46,600 20,670 67,270 Credit loss provision, net 42,201 6,848 49,049 Charge-offs — (16,906) (2) (16,906) Credit loss allowance at December 31, 2022 88,801 10,612 99,413 Credit loss provision, net 222,266 10,446 232,712 Charge-offs (3) (12,292) (10,794) (23,086) Credit loss allowance at December 31, 2023 $ 298,775 $ 10,264 $ 309,039 ______________________________________________________________________________________________________________________ (1) Relates to a $7.8 million unsecured promissory note deemed uncollectible in connection with a residential conversion project located in New York City and a $7.0 million subordinated mortgage note deemed uncollectible in connection with a vacant department store in the Chicago area. Both notes were previously considered credit deteriorated and were fully reserved at or prior to write-off. (2) Relates to a senior loan participation converted to an equity interest. (3) Represents the net charge-off of (i) a $12.3 million credit loss allowance related to the portion of a credit deteriorated commercial mortgage loan on an office and retail complex in Arizona deemed uncollectible and (ii) a $10.8 million credit loss allowance related to the portion of a credit deteriorated infrastructure loan participation collateralized by a first priority lien on two natural gas fired power plants near Chicago, which was deemed uncollectible due to a third party’s then nearly completed acquisition of the power plants. Such loans were originated in 2015 and 2017, respectively, with the infrastructure loan acquired as part of the Infrastructure Lending Segment acquisition in 2018. Unfunded Commitments Credit Loss Allowance (1) Loans Held-for-Investment HTM Preferred Commercial Infrastructure Interests (2) CMBS (2) Total Credit loss allowance at December 31, 2020 $ 5,258 $ 812 $ — $ — $ 6,070 Credit loss provision (reversal), net 1,434 (667) — — 767 Credit loss allowance at December 31, 2021 6,692 145 — — 6,837 Credit loss provision (reversal), net 3,057 (73) — 52 3,036 Credit loss allowance at December 31, 2022 9,749 72 — 52 9,873 Credit loss (reversal) provision, net (1,007) 492 1,548 22 1,055 Credit loss allowance at December 31, 2023 $ 8,742 $ 564 $ 1,548 $ 74 $ 10,928 Memo: Unfunded commitments as of December 31, 2023 (3) $ 1,237,874 $ 65,546 $ 8,282 $ 34,743 $ 1,346,445 ______________________________________________________________________________________________________________________ (1) Included in accounts payable, accrued expenses and other liabilities in our consolidated balance sheets. (2) See Note 6 for further details. (3) Represents amounts expected to be funded (see Note 23). |
Schedule of Activity in Loan Portfolio | The activity in our loan portfolio was as follows (amounts in thousands): Held-for-Investment Loans Year Ended December 31, 2023 Commercial Infrastructure Residential Held-for-Sale Loans Total Loans Balance at December 31, 2022 $ 16,048,507 $ 2,352,932 $ — $ 2,784,594 $ 21,186,033 Acquisitions/originations/additional funding 1,713,979 1,002,908 — 757,355 3,474,242 Capitalized interest (1) 125,057 518 — 172 125,747 Basis of loans sold (2) (53,000) — — (813,104) (866,104) Loan maturities/principal repayments (2,596,738) (864,549) — (185,884) (3,647,171) Discount accretion/premium amortization 53,418 13,694 — — 67,112 Changes in fair value — — — 62,702 62,702 Foreign currency translation gain, net 152,869 603 — — 153,472 Credit loss provision, net (222,266) (10,446) — — (232,712) Loan foreclosure and equity control (101,845) — — (929) (102,774) (3) Transfer to/from other asset/liability classifications or between segments (41,392) — — 40,731 (661) Balance at December 31, 2023 $ 15,078,589 $ 2,495,660 $ — $ 2,645,637 $ 20,219,886 Held-for-Investment Loans Year Ended December 31, 2022 Commercial Infrastructure Residential Held-for-Sale Loans Total Loans Balance at December 31, 2021 $ 13,450,198 $ 2,027,426 $ 59,225 $ 2,876,800 $ 18,413,649 Acquisitions/originations/additional funding 4,882,414 661,598 — 4,634,722 10,178,734 Capitalized interest (1) 121,500 503 1,639 508 124,150 Basis of loans sold (2) (10,109) (26,824) — (4,216,618) (4,253,551) Loan maturities/principal repayments (1,764,638) (293,264) (7,623) (193,105) (2,258,630) Discount accretion/premium amortization 52,939 9,618 — — 62,557 Changes in fair value — — (3,169) (343,053) (346,222) Foreign currency translation loss, net (304,051) (2,895) — — (306,946) Credit loss provision, net (42,201) (6,848) — — (49,049) Loan foreclosure, equity control and conversion to equity interest (273,929) (16,382) — — (290,311) (4) Transfer to/from other asset classifications or between segments (63,616) — (50,072) 25,340 (88,348) (5) Balance at December 31, 2022 $ 16,048,507 $ 2,352,932 $ — $ 2,784,594 $ 21,186,033 Held-for-Investment Loans Year Ended December 31, 2021 Commercial Infrastructure Residential Held-for-Sale Loans Total Loans Balance at December 31, 2020 $ 9,583,949 $ 1,412,440 $ 90,684 $ 1,052,835 $ 12,139,908 Acquisitions/originations/additional funding 7,822,441 817,104 — 5,351,034 13,990,579 Capitalized interest (1) 112,178 — 4,308 2,650 119,136 Basis of loans sold (2) (307,454) (12,678) — (3,856,736) (4,176,868) Loan maturities/principal repayments (3,508,969) (304,878) (31,251) (352,711) (4,197,809) Discount accretion/premium amortization 52,416 5,028 — 504 57,948 Changes in fair value — — 1,186 67,864 69,050 Foreign currency translation loss, net (71,419) (711) — — (72,130) Credit loss (provision) reversal, net 7,947 (12,580) — — (4,633) Loan foreclosure and conversion to equity interest (36,308) — — — (36,308) (6) Transfer to/from other asset classifications (204,583) 123,701 (5,702) 611,360 524,776 (7) Balance at December 31, 2021 $ 13,450,198 $ 2,027,426 $ 59,225 $ 2,876,800 $ 18,413,649 ______________________________________________________________________________________________________________________ (1) Represents accrued interest income on loans whose terms do not require current payment of interest. (2) See Note 13 for additional disclosure on these transactions. (3) Represents (i) the $41.1 million carrying value of a mortgage loan on the retail portion of a hotel located in Chicago foreclosed in May 2023, (ii) the $60.8 million carrying value of a first mortgage and mezzanine loan on a multifamily property in the Pacific Northwest consolidated upon obtaining equity control in December 2023 and (iii) $0.9 million in residential mortgage loans foreclosed. (4) Represents (i) the $50.2 million net carrying value of first mortgage and contiguous mezzanine loans related to an office building in Texas that is eliminated as a result of consolidating the net assets of the mezzanine borrower entity upon obtaining control over its pledged equity interests in May 2022, (ii) the $223.8 million principal amount of a senior loan secured by an office building in California foreclosed in December 2022 and (iii) the $16.4 million net carrying value of a senior loan participation in a natural gas-fired power plant in Massachusetts that was converted to an equity interest in December 2022. (5) During the year ended December 2022, we repurchased at par $745.0 million of agency-eligible residential loans that were previously sold. The repurchase was subject to a contingency for which we recorded a contingency loss of $88.4 million within other loss, net in the consolidated statement of operations. At the time the loans were repurchased, this loss was utilized to reduce the carrying value of the loans to their estimated fair value. (6) Includes (i) a $29.0 million credit deteriorated loan related to a residential conversion project which was foreclosed in April 2021 and (ii) $7.3 million of a commercial loan that was converted to equity interests in March 2021 (see Note 9) pursuant to a consensual transfer under pre-existing equity pledges of additional collateral. (7) |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Investment Securities | Investment securities were comprised of the following as of December 31, 2023 and 2022 (amounts in thousands): Carrying Value as of December 31, 2023 December 31, 2022 RMBS, available-for-sale $ 102,368 $ 113,386 RMBS, fair value option (1) 449,909 423,183 CMBS, fair value option (1), (2) 1,147,550 1,262,846 HTM debt securities, amortized cost net of credit loss allowance of $13,143 and $3,182 606,254 673,470 Equity security, fair value 8,340 9,840 Subtotal — Investment securities 2,314,421 2,482,725 VIE eliminations (1) (1,578,859) (1,666,921) Total investment securities $ 735,562 $ 815,804 ______________________________________________________________________________________________________________________ (1) Certain fair value option CMBS and RMBS are eliminated in consolidation against VIE liabilities pursuant to ASC 810. (2) Includes $177.3 million and $198.9 million of non-controlling interests in the consolidated entities which hold certain of these CMBS as of December 31, 2023 and 2022, respectively. |
Schedule of Purchases, Sales and Principal Collections for all Investment Securities | Purchases, sales, principal collections and redemptions for all investment securities were as follows (amounts in thousands): RMBS, RMBS, fair CMBS, fair HTM Equity Security Securitization Total Year Ended December 31, 2023 Purchases/fundings $ — $ — $ 48,011 $ 11,578 $ — $ (48,011) $ 11,578 Sales and redemptions 549 — — — 2,493 — 3,042 Principal collections 9,475 53,332 117,100 80,083 — (169,642) 90,348 Year Ended December 31, 2022 Purchases/fundings $ — $ 226,152 $ 63,681 $ 86,512 $ — $ (289,833) $ 86,512 Sales and redemptions — — — — — — — Principal collections 19,087 74,542 20,862 94,868 — (93,412) 115,947 Year Ended December 31, 2021 Purchases/fundings $ — $ 168,825 $ 71,476 $ 198,358 $ — $ (240,301) $ 198,358 Sales and redemptions — 81,871 38,714 — — (120,585) — Principal collections 30,722 63,144 7,732 54,725 — (68,873) 87,450 ______________________________________________________________________________________________________________________ (1) Represents RMBS and CMBS, fair value option amounts eliminated due to our consolidation of securitization VIEs. These amounts are reflected as issuance or repayment of debt of, or distributions from, consolidated VIEs in our consolidated statements of cash flows. |
Schedule of Investments in Available-for-Sale RMBS | The tables below summarize various attributes of our investments in available-for-sale RMBS as of December 31, 2023 and 2022 (amounts in thousands): Unrealized Gains or (Losses) Amortized Credit Net Gross Gross Net Fair Value December 31, 2023 RMBS $ 87,016 $ — $ 87,016 $ 18,092 $ (2,740) $ 15,352 $ 102,368 December 31, 2022 RMBS $ 92,431 $ — $ 92,431 $ 21,765 $ (810) $ 20,955 $ 113,386 Weighted Average Coupon (1) WAL December 31, 2023 RMBS 5.8 % 7.1 ______________________________________________________________________________________________________________________ (1) Calculated using the December 31, 2023 SOFR rate of 5.355% for floating rate securities. (2) Represents the remaining WAL of each respective group of securities as of the balance sheet date. The WAL of each individual security is calculated using projected amounts and projected timing of future principal payments. |
Schedule of Gross Unrealized Losses and Estimated Fair Value of Securities With No Recorded Allowance for Credit Loss | The following table presents the gross unrealized losses and estimated fair value of any available-for-sale securities that were in an unrealized loss position as of December 31, 2023 and 2022, and for which an allowance for credit losses has not been recorded (amounts in thousands): Estimated Fair Value Unrealized Losses Securities with a Securities with a Securities with a Securities with a As of December 31, 2023 RMBS $ 10,687 $ 6,361 $ (1,322) $ (1,418) As of December 31, 2022 RMBS $ 6,961 $ 1,889 $ (502) $ (308) |
Schedule of Investments in HTM Securities | The table below summarizes our investments in HTM debt securities as of December 31, 2023 and 2022 (amounts in thousands): Amortized Credit Loss Net Carrying Gross Unrealized Gross Unrealized Fair Value December 31, 2023 CMBS $ 580,704 $ (164) $ 580,540 $ 43 $ (24,835) $ 555,748 Preferred interests 9,570 (2,898) 6,672 — (318) 6,354 Infrastructure bonds 29,123 (10,081) 19,042 32 (16) 19,058 Total $ 619,397 $ (13,143) $ 606,254 $ 75 $ (25,169) $ 581,160 December 31, 2022 CMBS $ 577,681 $ (172) $ 577,509 $ 30 $ (30,424) $ 547,115 Preferred interests 29,757 — 29,757 125 (4,863) 25,019 Infrastructure bonds 69,214 (3,010) 66,204 47 (1,110) 65,141 Total $ 676,652 $ (3,182) $ 673,470 $ 202 $ (36,397) $ 637,275 |
Schedule of Activity in Credit Loss Allowance for HTM Debt Securities | The following table presents the activity in our credit loss allowance for HTM debt securities (amounts in thousands): CMBS Preferred Infrastructure Total HTM Credit loss allowance at December 31, 2020 $ — $ 2,749 $ 2,926 $ 5,675 Credit loss provision (reversal), net 3,140 (187) (18) 2,935 Credit loss allowance at December 31, 2021 3,140 2,562 2,908 8,610 Credit loss (reversal) provision, net (2,968) (2,562) 102 (5,428) Credit loss allowance at December 31, 2022 172 — 3,010 3,182 Credit loss (reversal) provision, net (8) 2,898 7,071 9,961 Credit loss allowance at December 31, 2023 $ 164 $ 2,898 $ 10,081 $ 13,143 |
Schedule of Maturities of our HTM Debt Securities | The table below summarizes the maturities of our HTM debt securities by type as of December 31, 2023 (amounts in thousands): CMBS Preferred Infrastructure Total Less than one year $ 96,548 $ — $ — $ 96,548 One to three years 437,173 6,672 330 444,175 Three to five years 46,819 — 9,598 56,417 Thereafter — — 9,114 9,114 Total $ 580,540 $ 6,672 $ 19,042 $ 606,254 |
Properties (Tables)
Properties (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Real Estate [Abstract] | |
Schedule of Properties Held-for-Investment | The table below summarizes our properties held-for-investment as of December 31, 2023 and December 31, 2022 (dollars in thousands): Depreciable Life December 31, 2023 December 31, 2022 Property Segment Land and land improvements 0 - 15 years $ 68,923 $ 176,029 Buildings and building improvements 0 - 45 years 629,511 856,411 Furniture & fixtures 3 - 5 years 608 446 Investing and Servicing Segment Land and land improvements 0 - 15 years 20,229 34,613 Buildings and building improvements 3 - 40 years 65,433 122,384 Furniture & fixtures 2 - 5 years 2,899 3,207 Commercial and Residential Lending Segment Land and land improvements N/A 79,361 99,043 Buildings and building improvements 0 - 50 years 139,538 79,661 Construction in progress N/A 218,205 287,701 Furniture & fixtures 5 years 2,003 — Properties, cost 1,226,710 1,659,495 Less: accumulated depreciation (180,326) (209,509) Properties, net $ 1,046,384 $ 1,449,986 |
Schedule of Operating Leases | Future rental payments due to us from tenants under existing non-cancellable operating leases for each of the next five years and thereafter, excluding rental payments due on properties held-for-sale, are as follows (in thousands): 2024 $ 62,333 2025 56,655 2026 47,778 2027 42,123 2028 38,104 Thereafter 127,957 Total $ 374,950 |
Investments of Consolidated A_2
Investments of Consolidated Affordable Housing Fund (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Investment Income | Income from the Woodstar Fund’s investments reflects the following components for the years ended December 31, 2023 and 2022, and for the period from November 5, 2021 through December 31, 2021 (in thousands): Year Ended December 31, 2023 Year Ended December 31, 2022 November 5, 2021 - December 31, 2021 Distributions from affordable housing fund investments $ 39,413 $ 35,043 $ 6,023 Unrealized change in fair value of investments (1) 251,831 720,693 402 Income from affordable housing fund investments $ 291,244 $ 755,736 $ 6,425 ______________________________________________________________________________________________________________________ (1) The fair value of the Woodstar Fund’s investments are dependent upon the real estate and capital markets, which are cyclical in nature. Property and investment values are affected by, among other things, capitalization rates, the availability of capital, occupancy, rental rates and interest and inflation rates. |
Investment in Unconsolidated _2
Investment in Unconsolidated Entities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Investments in Unconsolidated Entities | The table below summarizes our investments in unconsolidated entities as of December 31, 2023 and 2022 (dollars in thousands): Participation / Carrying value as of December 31, 2023 December 31, 2022 Equity method investments: Equity interests in two natural gas power plants 10% - 12% $ 52,230 $ 46,618 Investor entity which owns equity in an online real estate company 50% 5,575 5,457 Equity interest in a residential mortgage originator (2) N/A — 1,449 Various 20% - 50% 16,854 15,377 74,659 68,901 Other equity investments: Equity interest in a servicing and advisory business 2% 12,955 12,955 Investment funds which own equity in a loan servicer and other real estate assets 4% - 6% 842 940 Investor entities which own equity interests in two entertainment and retail centers (3) 15% 146 7,322 Various 1% - 3% 1,774 1,774 15,717 22,991 $ 90,376 $ 91,892 ______________________________________________________________________________________________________________________ (1) None of these investments are publicly traded and therefore quoted market prices are not available. (2) In January 2023, we sold our ownership interest to an unaffiliated third party. During the year ended December 31, 2022, we reduced the carrying value of our investment to the estimated net proceeds to be received. (3) |
Goodwill and Intangibles (Table
Goodwill and Intangibles (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangibles Assets | The following table summarizes our intangible assets, which are comprised of servicing rights intangibles and lease intangibles, as of December 31, 2023 and 2022 (amounts in thousands): As of December 31, 2023 As of December 31, 2022 Gross Carrying Accumulated Net Carrying Gross Carrying Accumulated Net Carrying Domestic servicing rights, at fair value $ 19,384 $ — $ 19,384 $ 17,790 $ — $ 17,790 In-place lease intangible assets 96,158 (67,420) 28,738 98,622 (64,246) 34,376 Favorable lease intangible assets 27,928 (11,083) 16,845 26,649 (10,042) 16,607 Total net intangible assets $ 143,470 $ (78,503) $ 64,967 $ 143,061 $ (74,288) $ 68,773 |
Schedule of Activity within Intangible Assets | The following table summarizes the activity within intangible assets for the years ended December 31, 2023 and 2022 (amounts in thousands): Domestic In-place Lease Favorable Lease Total Balance as of January 1, 2022 $ 16,780 $ 31,991 $ 14,793 $ 63,564 Acquisition (1) — 10,083 3,520 13,603 Amortization — (7,132) (1,664) (8,796) Impairment (2) — (43) (4) (47) Sales — (523) (38) (561) Changes in fair value due to changes in inputs and assumptions 1,010 — — 1,010 Balance as of December 31, 2022 $ 17,790 $ 34,376 $ 16,607 $ 68,773 Acquisition (3) — 2,061 2,280 4,341 Amortization — (6,789) (1,945) (8,734) Sales — (910) (97) (1,007) Changes in fair value due to changes in inputs and assumptions 1,594 — — 1,594 Balance as of December 31, 2023 $ 19,384 $ 28,738 $ 16,845 $ 64,967 _________________________________________________ (1) Represents lease intangibles related to an office building in Texas that were consolidated upon exercising control over a mezzanine loan borrower ’ s pledged equity interests in May 2022. (2) Impairment of intangible lease assets is recognized within other expense in our consolidated statement of operations. (3) Represents lease intangibles related to a deed in lieu of foreclosure on a mortgage loan on the retail portion of a hotel located in Chicago in May 2023 (see Note 5). |
Schedule of Future Amortization Expense | The following table sets forth the estimated aggregate amortization of our in-place lease intangible assets and favorable lease intangible assets for the next five years and thereafter (amounts in thousands): 2024 $ 7,195 2025 6,099 2026 4,573 2027 4,089 2028 3,943 Thereafter 19,684 Total $ 45,583 |
Secured Borrowings (Tables)
Secured Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Secured Debt [Abstract] | |
Schedule of Secured Financing Agreements | The following table is a summary of our secured financing agreements in place as of December 31, 2023 and 2022 (dollars in thousands): Outstanding Balance at Current Extended Maturity (a) Weighted Average Pledged Asset Maximum December 31, 2023 December 31, 2022 Repurchase Agreements: Commercial Loans Jun 2024 to Dec 2028 (b) Oct 2025 to Dec 2030 (b) Index + 2.07% (c) $ 10,267,245 $ 12,109,808 (d) $ 7,170,389 $ 7,746,867 Residential Loans Aug 2024 to Oct 2025 Aug 2024 to Apr 2026 SOFR + 1.90% 2,602,728 3,450,000 2,287,655 1,912,774 Infrastructure Loans Sep 2024 Sep 2026 SOFR + 2.07% 541,979 650,000 453,217 290,431 Conduit Loans Dec 2024 to Jun 2026 Dec 2025 to Jun 2027 SOFR + 2.30% 31,690 375,000 26,930 8,423 CMBS/RMBS Sep 2024 to Apr 2032 (e) Dec 2024 to Oct 2032 (e) (f) 1,424,610 995,907 714,168 (g) 840,625 Total Repurchase Agreements 14,868,252 17,580,715 10,652,359 10,799,120 Other Secured Financing: Borrowing Base Facility Nov 2024 Oct 2026 SOFR + 2.11% 479,925 750,000 (h) 27,639 — Commercial Financing Facilities Jul 2024 to Aug 2028 Jul 2025 to Dec 2030 Index + 2.20% 557,888 572,552 (i) 387,822 311,825 Residential Financing Facility N/A N/A N/A — — — 244,418 Infrastructure Financing Facilities Jun 2025 to Oct 2025 Jun 2027 to Jul 2032 Index + 2.14% 877,591 1,550,000 631,187 765,265 Property Mortgages - Fixed rate Oct 2025 to Jun 2026 N/A 4.52% 32,772 29,898 29,898 261,100 Property Mortgages - Variable rate Jun 2024 to Mar 2026 N/A (j) 895,159 855,080 853,145 847,633 Term Loans and Revolver (k) N/A (k) N/A (k) 1,516,778 1,366,778 1,380,766 Total Other Secured Financing 2,843,335 5,274,308 3,296,469 3,811,007 $ 17,711,587 $ 22,855,023 13,948,828 14,610,127 Unamortized net discount (24,975) (30,320) Unamortized deferred financing costs (55,857) (78,275) $ 13,867,996 $ 14,501,532 ______________________________________________________________________________________________________________________ (a) Subject to certain conditions as defined in the respective facility agreement. (b) For certain facilities, borrowings collateralized by loans existing at maturity may remain outstanding until such loan collateral matures, subject to certain specified conditions. (c) Certain facilities with an outstanding balance of $2.8 billion as of December 31, 2023 are indexed to EURIBOR, BBSY, SARON and SONIA. The remainder are indexed to SOFR. (d) Certain facilities with an aggregate initial maximum facility size of $11.7 billion may be increased to $12.1 billion, subject to certain conditions. The $12.1 billion amount includes such upsizes. (e) Certain facilities with an outstanding balance of $332.6 million as of December 31, 2023 carry a rolling 11-month or 12-month term which may reset monthly or quarterly with the lender's consent. These facilities carry no maximum facility size. (f) A facility with an outstanding balance of $281.3 million as of December 31, 2023 has a weighted average fixed annual interest rate of 3.54%. All other facilities are variable rate with a weighted average rate of SOFR + 2.22%. (g) Includes: (i) $281.3 million outstanding on a repurchase facility that is not subject to margin calls; and (ii) $33.0 million outstanding on one of our repurchase facilities that represents the 49% pro rata share owed by a non-controlling partner in a consolidated joint venture (see Note 16). (h) The maximum facility size as of December 31, 2023 of $450.0 million may be increased to $750.0 million, subject to certain conditions. (i) Certain facilities with an aggregate initial maximum facility size of $472.6 million may be increased to $572.6 million, subject to certain conditions. The $572.6 million amount includes such upsizes. (j) Includes a $600.0 million first mortgage and mezzanine loan secured by our Medical Office Portfolio. This debt has a weighted average interest rate of SOFR + 2.18% that we swapped to a fixed rate of 3.46%. The remainder have a weighted average rate of SOFR + 3.38%. (k) Consists of: (i) a $772.8 million term loan facility that matures in July 2026, of which $383.0 million has an annual interest rate of SOFR + 2.60% and $389.8 million has an annual interest rate of SOFR + 3.35%, subject to a 0.75% SOFR floor, (ii) a $150.0 million revolving credit facility that matures in April 2026 with an annual interest rate of SOFR + 2.60% and (iii) a $594.0 million term loan facility that matures in November 2027, with an annual interest rate of SOFR + 3.25%, subject to a 0.50% SOFR floor. These facilities are secured by the equity interests in certain of our subsidiaries which totaled $5.9 billion as of December 31, 2023. |
Schedule of Collateralized Loan Obligations | The following table is a summary of our CLOs and our SASB as of December 31, 2023 and 2022 (amounts in thousands): December 31, 2023 Count Face Carrying Weighted Maturity STWD 2022-FL3 Collateral assets 48 $ 997,569 $ 1,007,532 SOFR + 3.53% (a) May 2026 (b) Financing 1 $ 840,620 $ 837,881 SOFR + 1.89% (c) November 2038 (d) STWD 2021-HTS Collateral assets 1 $ 223,193 $ 224,509 SOFR + 3.87% (a) April 2026 (b) Financing 1 $ 203,284 $ 203,058 SOFR + 2.82% (c) April 2034 (d) STWD 2021-FL2 Collateral assets 34 $ 1,272,585 $ 1,288,165 SOFR + 3.95% (a) January 2026 (b) Financing 1 $ 1,065,713 $ 1,063,454 SOFR + 1.85% (c) April 2038 (d) STWD 2019-FL1 Collateral assets 14 $ 734,099 $ 739,684 SOFR + 3.51% (a) May 2025 (b) Financing 1 $ 570,546 $ 570,546 SOFR + 1.62% (c) July 2038 (d) STWD 2021-SIF2 Collateral assets 30 $ 499,401 $ 514,286 SOFR + 3.87% (a) December 2027 (b) Financing 1 $ 410,000 $ 408,166 SOFR + 2.11% (c) January 2033 (d) STWD 2021-SIF1 Collateral assets 32 $ 499,767 $ 514,594 SOFR + 3.97% (a) August 2027 (b) Financing 1 $ 410,000 $ 408,187 SOFR + 2.42% (c) April 2032 (d) Total Collateral assets $ 4,226,614 $ 4,288,770 Financing $ 3,500,163 $ 3,491,292 December 31, 2022 STWD 2022-FL3 Collateral assets 51 $ 1,000,000 $ 1,010,051 Index + 3.52% (a) February 2026 (b) Financing 1 $ 842,500 $ 842,374 SOFR + 1.93% (c) November 2038 (d) STWD 2021-HTS Collateral assets 1 $ 230,000 $ 231,186 LIBOR + 3.85% (a) April 2026 (b) Financing 1 $ 210,091 $ 208,961 LIBOR + 2.71% (c) April 2034 (d) STWD 2021-FL2 Collateral assets 36 $ 1,277,474 $ 1,284,240 Index + 4.04% (a) June 2025 (b) Financing 1 $ 1,077,375 $ 1,072,403 LIBOR + 1.80% (c) April 2038 (d) STWD 2019-FL1 Collateral assets 16 $ 902,799 $ 906,409 Index + 3.67% (a) December 2024 (b) Financing 1 $ 739,174 $ 738,473 SOFR + 1.64% (c) July 2038 (d) STWD 2021-SIF2 Collateral assets 31 $ 495,587 $ 510,730 Index + 3.73% (a) February 2027 (b) Financing 1 $ 410,000 $ 407,260 SOFR + 2.11% (c) January 2033 (d) STWD 2021-SIF1 Collateral assets 31 $ 495,781 $ 511,471 Index + 3.76% (a) November 2026 (b) Financing 1 $ 410,000 $ 406,753 LIBOR + 2.15% (c) April 2032 (d) Total Collateral assets $ 4,401,641 $ 4,454,087 Financing $ 3,689,140 $ 3,676,224 ___________________________________________________________________________________________________________________________________ (a) Represents the weighted-average coupon earned on variable rate loans during the respective year-to-date period and excludes loans for which interest income is not recognized. Of the loans financed by the STWD 2021-FL2 CLO as of December 31, 2023, 7% earned fixed-rate weighted average interest of 7.39%. Of the investments financed by the STWD 2021-SIF1 CLO as of December 31, 2023, 2% earned fixed-rate weighted average interest of 5.70%. (b) Represents the weighted-average maturity, assuming the extended contractual maturity of the collateral assets. (c) Represents the weighted-average cost of financing, inclusive of deferred issuance costs. (d) Repayments of the CLOs and SASB are tied to timing of the related collateral asset repayments. The term of the CLOs and SASB financing obligations represents the legal final maturity date. |
Schedule of Five-Year Principal Repayments for Secured Financings | The following table sets forth our principal repayments schedule for secured financings based on the earlier of (i) the extended contractual maturity of each credit facility or (ii) the extended contractual maturity of each of the investments that have been pledged as collateral under the respective credit facility (amounts in thousands): Repurchase Other Secured Financing (a) CLOs and SASB (b) Total 2024 $ 1,326,226 $ 658,382 $ 505,165 $ 2,489,773 2025 2,186,047 279,752 831,133 3,296,932 2026 2,951,048 1,041,635 1,818,554 5,811,237 2027 3,225,566 1,119,753 129,044 4,474,363 2028 753,565 189,387 206,597 1,149,549 Thereafter 209,907 7,560 9,670 227,137 Total $ 10,652,359 $ 3,296,469 $ 3,500,163 $ 17,448,991 ______________________________________________________________________________________________________________________ (a) Excludes debt related to properties held-for-sale (see Note 7). (b) For the CLOs, the above does not assume utilization of their reinvestment features. The SASB does not have a reinvestment feature. |
Unsecured Senior Notes (Tables)
Unsecured Senior Notes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Instruments [Abstract] | |
Schedule of Unsecured Convertible Senior Notes Outstanding | The following table is a summary of our unsecured senior notes outstanding as of December 31, 2023 and 2022 (dollars in thousands): Coupon Effective Maturity Remaining Carrying Value at December 31, 2023 December 31, 2022 2023 Convertible Notes 4.38 % 4.57 % 4/1/2023 N/A — 250,000 2027 Convertible Notes 6.75 % 7.48 % 7/15/2027 3.5 years 380,750 — 2023 Senior Notes 5.50 % 5.71 % 11/1/2023 N/A — 300,000 2024 Senior Notes 3.75 % 3.94 % 12/31/2024 1.0 year 400,000 400,000 2025 Senior Notes 4.75 % (2) 5.04 % 3/15/2025 1.2 years 500,000 500,000 2026 Senior Notes 3.63 % 3.77 % 7/15/2026 2.5 years 400,000 400,000 2027 Senior Notes 4.38 % (3) 4.49 % 1/15/2027 3.0 years 500,000 500,000 Total principal amount 2,180,750 2,350,000 Unamortized discount—Convertible Notes (8,570) (118) Unamortized discount—Senior Notes (5,445) (9,051) Unamortized deferred financing costs (7,847) (11,620) Total carrying amount $ 2,158,888 $ 2,329,211 ______________________________________________________________________________________________________________________ (1) Effective rate includes the effects of underwriter purchase discount. (2) The coupon on the 2025 Senior Notes is 4.75%. At closing, we swapped $470.0 million of the notes to a floating rate of LIBOR + 2.53%, which was converted to SOFR + 2.53% effective July 2023. (3) The coupon on the 2027 Senior Notes is 4.375%. At closing, we swapped the notes to a floating rate of SOFR + 2.95%. |
Schedule of Conversion Attributes on Convertible Notes Outstanding | The following table details the conversion attributes of our Convertible Notes outstanding as of December 31, 2023 (amounts in thousands, except rates): December 31, 2023 Conversion Conversion Rate (1) Price (2) 2027 Convertible Notes 48.1783 $ 20.76 ______________________________________________________________________________________________________________________ (1) The conversion rate represents the number of shares of common stock issuable per $1,000 principal amount of 2027 Convertible Notes converted, as adjusted in accordance with the indenture governing the 2027 Convertible Notes (including the applicable supplemental indenture). (2) As of December 31, 2023, the market price of the Company’s common stock was $21.02. |
Loan Securitization_Sale Acti_2
Loan Securitization/Sale Activities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Loan Securitization/Sale Activities | |
Schedule of Face Amount and Proceeds of Loans | The following summarizes the face amount and proceeds of commercial and residential loans securitized for the years ended December 31, 2023, 2022 and 2021 (amounts in thousands): Commercial Loans Residential Loans Face Amount Proceeds Face Amount Proceeds For the Year Ended December 31, 2023 $ 759,740 $ 770,733 $ — $ — 2022 1,202,274 1,182,861 1,905,829 1,913,459 2021 1,185,251 1,242,974 2,287,733 2,362,798 |
Schedule of Loans Sold | The following table summarizes our loans sold by the Commercial and Residential Lending Segment, net of expenses (amounts in thousands): Loan Transfers Accounted for as Sales Commercial Loans Residential Loans Face amount (1) Proceeds (1) Face Amount (2) Proceeds (2) For the Year Ended December 31, 2023 $ 95,496 $ 95,271 $ — $ — 2022 75,235 74,859 1,057,013 1,056,683 2021 335,552 328,878 216,827 225,940 ______________________________________________________________________________________________________________________ (1) During the year ended December 31, 2023, we sold $95.5 million of mezzanine loans at par less costs to sell. During the year ended December 31, 2022, we sold $11.5 million of senior interests in first mortgage loans and $63.7 million of whole loan interests for proceeds of $10.2 million and $64.6 million, respectively. During the year ended December 31, 2021, we sold $313.0 million of senior interests in first mortgage loans and $22.6 million of whole loan interests for proceeds of $307.3 million and $21.5 million, respectively. (2) |
Derivatives and Hedging Activ_2
Derivatives and Hedging Activity (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Non-Designated Derivatives | The following table summarizes our non-designated derivatives as of December 31, 2023 (notional amounts in thousands): Type of Derivative Number of Contracts Aggregate Notional Amount Notional Currency Maturity Fx contracts – Buy Euros (“EUR”) 14 28,805 EUR January 2024 - April 2026 Fx contracts – Buy Pounds Sterling (“GBP”) 17 129,948 GBP January 2024 - January 2027 Fx contracts – Buy Australian dollar (“AUD”) 12 822,069 AUD January 2024 - October 2026 Fx contracts – Sell EUR 186 843,888 EUR January 2024 - February 2027 Fx contracts – Sell GBP 221 668,887 GBP January 2024 - April 2027 Fx contracts – Sell AUD 133 1,704,744 AUD January 2024 - July 2027 Fx contracts – Sell Swiss Franc (“CHF”) 65 20,423 CHF February 2024 - November 2025 Interest rate swaps – Paying fixed rates 51 4,456,559 USD April 2024 - October 2033 Interest rate swaps – Receiving fixed rates 2 970,000 USD March 2025 - January 2027 Interest rate caps 4 624,499 USD November 2024 - April 2025 Interest rate caps 1 61,000 GBP April 2024 Credit instruments 3 49,000 USD September 2058 - August 2061 Interest rate swap guarantees 1 100,456 USD June 2025 Total 710 |
Schedule of Fair Value of Derivatives | The table below presents the fair value of our derivative financial instruments as well as their classification on the consolidated balance sheets as of December 31, 2023 and 2022 (amounts in thousands): Fair Value of Derivatives in an Asset Position (1) as of December 31, Fair Value of Derivatives in a Liability Position (2) as of December 31, 2023 2022 2023 2022 Interest rate contracts $ 8,899 $ 10,756 $ 48,401 $ 69,776 Interest rate swap guarantees — — — — Foreign exchange contracts 53,979 97,289 54,066 21,628 Credit instruments 559 576 — — Total derivatives $ 63,437 $ 108,621 $ 102,467 $ 91,404 ___________________________________________________ (1) Classified as derivative assets in our consolidated balance sheets. (2) Classified as derivative liabilities in our consolidated balance sheets. |
Schedule of Effect of Derivative Financial Instruments | The table below presents the effect of our derivative financial instruments on the consolidated statements of operations for the years ended December 31, 2023, 2022 and 2021 (amounts in thousands): Derivatives Not Designated Location of (Loss) Gain Recognized in Income Amount of (Loss) Gain Recognized in Income for the Year Ended December 31, 2023 2022 2021 Interest rate contracts (Loss) gain on derivative financial instruments, net $ 27,293 $ 216,778 $ 41,033 Interest rate swap guarantees (Loss) gain on derivative financial instruments, net — 260 589 Foreign exchange contracts (Loss) gain on derivative financial instruments, net (65,085) 116,443 41,228 Credit instruments (Loss) gain on derivative financial instruments, net (813) 534 (487) $ (38,605) $ 334,015 $ 82,363 |
Offsetting Assets and Liabili_2
Offsetting Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Offsetting [Abstract] | |
Schedule of Offsetting Assets and Liabilities | The following tables present the potential effects of netting arrangements on our financial position for financial assets and liabilities within the scope of ASC 210-20, Balance Sheet—Offsetting , which for us are derivative assets and liabilities as well as repurchase agreement liabilities (amounts in thousands): (ii) (iii) = (i) - (ii) (iv) (i) Financial Cash Collateral (v) = (iii) - (iv) As of December 31, 2023 Derivative assets $ 63,437 $ — $ 63,437 $ 41,341 $ — $ 22,096 Derivative liabilities $ 102,467 $ — $ 102,467 $ 41,340 $ 61,127 $ — Repurchase agreements 10,652,359 — 10,652,359 10,652,359 — — $ 10,754,826 $ — $ 10,754,826 $ 10,693,699 $ 61,127 $ — As of December 31, 2022 Derivative assets $ 108,621 $ — $ 108,621 $ 69,221 $ — $ 39,400 Derivative liabilities $ 91,404 $ — $ 91,404 $ 69,221 $ 22,183 $ — Repurchase agreements 10,799,120 — 10,799,120 10,799,120 — — $ 10,890,524 $ — $ 10,890,524 $ 10,868,341 $ 22,183 $ — |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Variable Interest Entities | |
Schedule of Assets and Liabilities of Our Consolidated CLO | The following table details the assets and liabilities of our consolidated CLOs and SASB as of December 31, 2023 and 2022 (amounts in thousands): December 31, 2023 December 31, 2022 Assets: Cash and cash equivalents $ 33,175 $ 31,611 Loans held-for-investment 4,210,097 4,365,791 Investment securities 9,946 36,466 Accrued interest receivable 26,355 20,088 Other assets 9,197 131 Total Assets $ 4,288,770 $ 4,454,087 Liabilities Accounts payable, accrued expenses and other liabilities $ 21,174 $ 17,737 Collateralized loan obligations and single asset securitization, net 3,491,292 3,676,224 Total Liabilities $ 3,512,466 $ 3,693,961 |
Stockholders' Equity and Non-_2
Stockholders' Equity and Non-Controlling Interests (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Dividends Declared by Board of Directors | Our board of directors declared the following dividends during the years ended December 31, 2023, 2022 and 2021: Declaration Date Record Date Ex-Dividend Date Payment Date Amount Frequency 12/15/23 12/29/23 12/28/23 1/15/24 $ 0.48 Quarterly 9/15/23 9/30/23 9/29/23 10/16/23 0.48 Quarterly 6/15/23 6/30/23 6/29/23 7/17/23 0.48 Quarterly 3/16/23 3/31/23 3/30/23 4/14/23 0.48 Quarterly 12/9/22 12/30/22 12/29/22 1/13/23 0.48 Quarterly 9/16/22 9/30/22 9/29/22 10/14/22 0.48 Quarterly 6/15/22 6/30/22 6/29/22 7/15/22 0.48 Quarterly 3/14/22 3/31/22 3/30/22 4/15/22 0.48 Quarterly 12/15/21 12/31/21 12/30/21 1/14/22 0.48 Quarterly 9/15/21 9/30/21 9/29/21 10/15/21 0.48 Quarterly 6/14/21 6/30/21 6/29/21 7/15/21 0.48 Quarterly 3/11/21 3/31/21 3/30/21 4/15/21 0.48 Quarterly |
Summary of Share Awards Granted Under the Manager Equity Plan | The table below summarizes our share awards granted or vested under the 2017 and 2022 Manager Equity Plans during the years ended December 31, 2023, 2022 and 2021 (dollar amounts in thousands): Grant Date Type Amount Granted Grant Date Fair Value Vesting Period November 2022 RSU 1,500,000 $ 31,605 3 years November 2020 RSU 1,800,000 30,078 3 years September 2019 RSU 1,200,000 29,484 (1) April 2018 RSU 775,000 16,329 3 years ______________________________________________________________________________________________________________________ (1) Of the amount granted, 218,898 vested immediately on the grant date and the remaining amount vests over a three-year period. |
Schedule of Common Stock Issued to Manager as Incentive Compensation | The following shares of common stock were issued, without restriction, to our Manager as part of the incentive compensation due under the Management Agreement during the years ended December 31, 2023, 2022 and 2021: Timing of Issuance Shares of Common Stock Issued Price per share August 2023 92,640 20.59 May 2023 377,207 16.39 March 2023 373,204 19.38 November 2022 21,390 20.92 August 2022 108,374 23.94 May 2022 647,128 22.69 February 2022 1,068,828 23.78 November 2021 18,649 26.08 August 2021 97,151 25.79 May 2021 267,378 24.54 February 2021 332,002 22.55 |
Schedule of Share-Based Compensation Expenses | The following table summarizes our share-based compensation expenses during the years ended December 31, 2023, 2022 and 2021 (in thousands): For the Year Ended December 31, 2023 2022 2021 Management fees: Manager incentive fee $ 13,703 $ 24,903 $ 35,135 Manager Equity Plans (1) 18,027 18,693 19,448 31,730 43,596 54,583 General and administrative: Equity Plans (1) 20,761 21,219 19,838 ESPP 459 273 — 21,219 21,492 19,838 Total share-based compensation expense (2) $ 52,949 $ 65,089 $ 74,421 __________________________________________ (1) Share-based compensation expense relating to the 2017 and 2022 Manager Equity Plans is reflected within the Manager Equity Plans line. Share-based compensation expense relating to the 2017 and 2022 Equity Plans is reflected within the Equity Plans line. (2) The income tax benefit associated with the share-based compensation expense for the years ended December 31, 2023, 2022 and 2021 was not material. |
Schedule of Non-Vested Shares and Share Equivalents | Schedule of Non-Vested Shares and Share Equivalents (1) Equity Plan Manager Total Weighted Average Balance as of January 1, 2023 2,513,847 1,825,000 4,338,847 $ 20.65 Granted 914,694 — 914,694 18.93 Vested (687,743) (950,000) (1,637,743) 18.56 Forfeited (169,070) — (169,070) 22.76 Balance as of December 31, 2023 2,571,728 875,000 3,446,728 21.08 __________________________________________ (1) Equity-based award activity for awards granted under the 2017 and 2022 Equity Plans is reflected within the Equity Plan column, and for awards granted under the 2017 and 2022 Manager Equity Plans, within the Manager Equity Plan column. |
Schedule of Vesting Schedule | Equity Manager Plan Equity Plan Total 2024 1,674,540 500,000 2,174,540 2025 583,200 375,000 958,200 2026 313,988 — 313,988 Total 2,571,728 875,000 3,446,728 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Reconciliation of Net Income and Number of Shares Used in Computation of Earnings Per Share | The following table provides a reconciliation of net income and the number of shares of common stock used in the computation of basic EPS and diluted EPS (amounts in thousands, except per share amounts): For the Year Ended December 31, 2023 2022 2021 Basic Earnings Income attributable to STWD common stockholders $ 339,213 $ 871,475 $ 447,739 Less: Income attributable to participating shares not already deducted as non-controlling interests (6,412) (17,113) (6,808) Basic earnings $ 332,801 $ 854,362 $ 440,931 Diluted Earnings Income attributable to STWD common stockholders $ 339,213 $ 871,475 $ 447,739 Less: Income attributable to participating shares not already deducted as non-controlling interests (6,412) (17,113) (6,808) Add: Interest expense on Convertible Notes * 11,632 11,619 Add: Undistributed earnings to participating shares — 11,229 — Less: Undistributed earnings reallocated to participating shares — (10,880) — Diluted earnings $ 332,801 $ 866,343 $ 452,550 Number of Shares: Basic — Average shares outstanding 309,771 305,524 285,942 Effect of dilutive securities — Convertible Notes * 9,649 9,649 Effect of dilutive securities — Contingently issuable shares 450 386 1,037 Effect of dilutive securities — Unvested non-participating shares 286 169 198 Diluted — Average shares outstanding 310,507 315,728 296,826 Earnings Per Share Attributable to STWD Common Stockholders: Basic $ 1.07 $ 2.80 $ 1.54 Diluted $ 1.07 $ 2.74 $ 1.52 ______________________________________________________________________________________________________________________ * |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Schedule of Changes in AOCI by Component | The changes in AOCI by component are as follows (amounts in thousands): Cumulative Foreign Total Balance at January 1, 2021 $ 44,057 $ (64) $ 43,993 OCI before reclassifications (3,101) — (3,101) Amounts reclassified from AOCI (3) 64 61 Net period OCI (3,104) 64 (3,040) Balance at December 31, 2021 40,953 — 40,953 OCI before reclassifications (19,998) — (19,998) Amounts reclassified from AOCI — — — Net period OCI (19,998) — (19,998) Balance at December 31, 2022 20,955 — 20,955 OCI before reclassifications (5,648) — (5,648) Amounts reclassified from AOCI 45 — 45 Net period OCI (5,603) — (5,603) Balance at December 31, 2023 $ 15,352 $ — $ 15,352 |
Schedule of Reclassifications out of AOCI | The reclassifications out of AOCI impacted the consolidated statements of operations for the years ended December 31, 2023, 2022 and 2021 as follows (amounts in thousands): Amounts Reclassified from AOCI during the Year Affected Line Item Ended December 31, in the Statements Details about AOCI Components 2023 2022 2021 of Operations Unrealized (loss) gain on available-for-sale securities: Net realized loss on sale of investment $ (45) $ — $ — Gain on sale of investments and other assets, net Interest realized upon collection — — 3 Interest income from investment securities Total (45) — 3 Foreign currency translation: Foreign currency adjustment — — (64) Gain on sale of investments and other assets, net Total reclassifications for the period $ (45) $ — $ (61) |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Assets and Liabilities Carried at Fair Value on a Recurring Basis | The following tables present our financial assets and liabilities carried at fair value on a recurring basis in the consolidated balance sheets by their level in the fair value hierarchy as of December 31, 2023 and 2022 (amounts in thousands): December 31, 2023 Total Level I Level II Level III Financial Assets: Loans under fair value option $ 2,645,637 $ — $ — $ 2,645,637 RMBS 102,368 — — 102,368 CMBS 18,600 — — 18,600 Equity security 8,340 8,340 — — Woodstar Fund investments 2,012,833 — — 2,012,833 Domestic servicing rights 19,384 — — 19,384 Derivative assets 63,437 — 63,437 — VIE assets 43,786,356 — — 43,786,356 Total $ 48,656,955 $ 8,340 $ 63,437 $ 48,585,178 Financial Liabilities: Derivative liabilities $ 102,467 $ — $ 102,467 $ — VIE liabilities 42,175,734 — 36,570,938 5,604,796 Total $ 42,278,201 $ — $ 36,673,405 $ 5,604,796 December 31, 2022 Total Level I Level II Level III Financial Assets: Loans under fair value option $ 2,784,594 $ — $ — $ 2,784,594 RMBS 113,386 — — 113,386 CMBS 19,108 — — 19,108 Equity security 9,840 9,840 — — Woodstar Fund investments 1,761,002 — — 1,761,002 Domestic servicing rights 17,790 — — 17,790 Derivative assets 108,621 — 108,621 — VIE assets 52,453,041 — — 52,453,041 Total $ 57,267,382 $ 9,840 $ 108,621 $ 57,148,921 Financial Liabilities: Derivative liabilities $ 91,404 $ — $ 91,404 $ — VIE liabilities 50,754,355 — 45,248,412 5,505,943 Total $ 50,845,759 $ — $ 45,339,816 $ 5,505,943 |
Schedule of Changes in Financial Assets and Liabilities Classified as Level III | The changes in financial assets and liabilities classified as Level III are as follows for the years ended December 31, 2023 and 2022 (amounts in thousands): Loans at RMBS CMBS Woodstar Fund Investments Domestic VIE Assets VIE Total January 1, 2022 balance $ 2,936,025 $ 143,980 $ 22,244 $ 1,040,309 $ 16,780 $ 61,280,543 $ (4,780,221) $ 60,659,660 Total realized and unrealized gains (losses): Included in earnings: Change in fair value / gain on sale (346,222) — (1,674) 720,693 1,010 (12,458,814) 1,940,362 (10,144,645) Net accretion — 8,491 — — — — — 8,491 Included in OCI — (19,998) — — — — — (19,998) Purchases / Originations 4,634,722 — — — — — — 4,634,722 Sales (3,678,671) — — — — — — (3,678,671) Cash repayments / receipts (200,728) (19,087) (1,992) — — — (18,870) (240,677) Transfers into Level III (86,201) — — — — — (1,506,438) (1,592,639) Transfers out of Level III (474,331) — — — — — 668,365 194,034 Consolidation of VIEs — — — — — 4,361,325 (1,810,101) 2,551,224 Deconsolidation of VIEs — — 530 — — (730,013) 960 (728,523) December 31, 2022 balance 2,784,594 113,386 19,108 1,761,002 17,790 52,453,041 (5,505,943) 51,642,978 Total realized and unrealized gains (losses): Included in earnings: Change in fair value / gain on sale 62,702 — 282 251,831 1,594 (8,790,373) 485,136 (7,988,828) Net accretion — 4,661 — — — — — 4,661 Included in OCI — (5,603) — — — — — (5,603) Purchases / Originations 756,522 — — — — — — 756,522 Sales (710,957) (601) — — — — — (711,558) Cash repayments / receipts (185,885) (9,475) (790) — — (598,351) (13,410) (807,911) Transfers into Level III 27 — — — — — (2,241,350) (2,241,323) Transfers out of Level III (61,366) — — — — — 1,670,771 1,609,405 Consolidation of VIEs — — — — — 722,039 — 722,039 December 31, 2023 balance $ 2,645,637 $ 102,368 $ 18,600 $ 2,012,833 $ 19,384 $ 43,786,356 $ (5,604,796) $ 42,980,382 Amount of unrealized gains (losses) attributable to assets still held at December 31, 2023: Included in earnings $ 15,853 $ 4,630 $ 282 $ 251,831 $ 1,594 $ (8,818,672) $ 485,136 $ (8,059,346) Included in OCI — (5,638) — — — — — (5,638) Amount of unrealized gains (losses) attributable to assets still held at December 31, 2022: Included in earnings $ (368,368) $ 8,157 $ (1,148) $ 720,693 $ 1,010 $ (12,458,814) $ 1,940,362 $ (10,158,108) Included in OCI — (19,592) — — — — — (19,592) |
Schedule of Fair Value of Financial Instruments not Carried at Fair Value | The following table presents the fair values of our financial instruments not carried at fair value on the consolidated balance sheets (amounts in thousands): December 31, 2023 December 31, 2022 Carrying Fair Carrying Fair Financial assets not carried at fair value: Loans $ 17,574,249 $ 17,483,058 $ 18,401,439 $ 18,215,072 HTM debt securities 606,254 581,160 673,470 637,275 Financial liabilities not carried at fair value: Secured financing agreements, CLOs and SASB (a) $ 17,552,979 $ 17,466,172 $ 18,177,756 $ 18,017,651 Unsecured senior notes 2,158,888 2,128,835 2,329,211 2,199,135 __________________________________________________ (a) Includes debt related to properties held-for-sale (see Note 7). |
Schedule of Quantitative Information for Level 3 Measurements for Assets and Liabilities Measured at Fair Value on Recurring Basis | The following is quantitative information about significant unobservable inputs in our Level III measurements for those assets and liabilities measured at fair value on a recurring basis (dollars in thousands): Carrying Value at December 31, 2023 Valuation Unobservable Range (Weighted Average) as of (1) December 31, 2023 December 31, 2022 Loans under fair value option $ 2,645,637 Discounted cash flow, market pricing Coupon (d) 2.8% - 9.9% (4.5%) 2.8% - 9.3% (4.5%) Remaining contractual term (d) 4.3 - 38.5 years (27.4 years) 5.3 - 39.5 years (28.6 years) FICO score (a) 585 - 900 (749) 585 - 900 (749) LTV (b) 5% - 140% (68%) 4% - 92% (67%) Purchase price (d) 80.0% - 108.6% (101.4%) 80.0% - 108.6% (101.4%) RMBS 102,368 Discounted cash flow Constant prepayment rate (a) 2.9% - 9.6% (5.2%) 2.8% - 12.0% (5.5%) Constant default rate (b) 1.0% - 4.2% (1.7%) 1.1% - 4.4% (2.0%) Loss severity (b) 0% - 99% (17%) (f) 0% - 109% (24%) (f) Delinquency rate (c) 8% - 25% (14%) 6% - 29% (16%) Servicer advances (a) 30% - 78% (51%) 31% - 77.7% (53%) Annual coupon deterioration (b) 0% - 1.3% (0.1%) 0% - 2.6% (0.1%) Putback amount per projected total collateral loss (e) 0% - 8% (0.5%) 0% - 8% (0.5%) CMBS 18,600 Discounted cash flow Yield (b) 0% - 540.1% (10.6%) 0% - 117.5% (10.1%) Duration (c) 0 - 6.7 years (2.4 years) 0 - 7.7 years (3.0 years) Woodstar Fund investments 2,012,833 Discounted cash flow Discount rate - properties (b) 6.3% - 7.0% (6.7%) 6.3% - 6.8% (6.5%) Discount rate - debt (a) 3.0% - 6.9% (5.4%) 5.6% - 6.7% (6.1%) Terminal capitalization rate (b) 4.8% - 5.5% (5.2%) 5.0% - 5.5% (5.1%) Implied capitalization rate (b) 4.25% (4.25%) 4.20% (4.20%) Domestic servicing rights 19,384 Discounted cash flow Debt yield (a) 8.50% (8.50%) 8.25% (8.25%) Discount rate (b) 15% (15%) 15% (15%) VIE assets 43,786,356 Discounted cash flow Yield (b) 0% - 691.0% (15.9%) 0% - 453.6% (15.3%) Duration (c) 0 - 10.0 years (1.8 years) 0 - 11.0 years (2.4 years) VIE liabilities 5,604,796 Discounted cash flow Yield (b) 0% - 691.0% (11.4%) 0% - 453.6% (10.4%) Duration (c) 0 - 10.0 years (1.7 years) 0 - 11.0 years (1.8 years) ______________________________________________________________________________________________________________________ (1) Unobservable inputs were weighted by the relative carrying value of the instruments as of December 31, 2023 and 2022. Information about Uncertainty of Fair Value Measurements (a) Significant increase (decrease) in the unobservable input in isolation would result in a significantly higher (lower) fair value measurement. (b) Significant increase (decrease) in the unobservable input in isolation would result in a significantly lower (higher) fair value measurement. (c) Significant increase (decrease) in the unobservable input in isolation would result in either a significantly lower or higher (higher or lower) fair value measurement depending on the structural features of the security in question. (d) This unobservable input is not subject to variability as of the respective reporting dates. (e) Any delay in the putback recovery date leads to a decrease in fair value for the majority of securities in our RMBS portfolio. (f) 5% and 10% of the portfolio falls within a range of 45% - 80% as of December 31, 2023 and 2022, respectively. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax (Benefit) Provision | Our income tax (benefit) provision consisted of the following for the years ended December 31, 2023, 2022 and 2021 (in thousands): For the Year Ended December 31, 2023 2022 2021 Current Federal $ 554 $ 1,446 $ 142 State (31) 705 (80) Foreign — — (392) Total current 523 2,151 (330) Deferred Federal 98 (47,128) 6,893 State (1,303) (16,546) 2,106 Total deferred (1,205) (63,674) 8,999 Total income tax (benefit) provision $ (682) $ (61,523) $ 8,669 |
Schedule of Temporary Differences on Deferred Tax Assets | The following table presents the tax effects of temporary differences on net deferred tax assets which are classified in our consolidated balance sheets within other assets at December 31, 2023 and December 31, 2022 (in thousands): December 31, 2023 2022 Deferred tax assets/(liabilities), net Reserves and accruals $ 3,636 $ 3,314 Domestic intangible assets (22,890) (15,946) Investments in unconsolidated entities (984) 782 Net operating loss and interest expense carryforwards 78,979 69,294 Other U.S. temporary differences 47 140 Net deferred tax assets $ 58,788 $ 57,584 |
Schedule of Income Tax Rate Reconciliation | The following table is a reconciliation of our U.S. federal income tax provision determined using our statutory federal tax rate to our reported income tax (benefit) provision for the years ended December 31, 2023, 2022 and 2021 (dollars in thousands): For the Year Ended December 31, 2023 2022 2021 Federal statutory tax rate $ 87,670 21.0 % $ 209,483 21.0 % $ 105,230 21.0 % REIT and other non-taxable income (88,281) (21.2) % (256,105) (25.7) % (92,121) (18.4) % State income taxes (201) — % (15,319) (1.5) % 4,307 0.9 % Federal benefit of state tax deduction 42 — % 3,217 0.3 % (905) (0.2) % Intra-entity transfers — — % (4,327) (0.4) % (6,635) (1.3) % Other 88 — % 1,528 0.1 % (1,207) (0.3) % Effective tax rate $ (682) (0.2) % $ (61,523) (6.2) % $ 8,669 1.7 % |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Lease Cost | Our lease costs and sublease income were as follows (in thousands): For the Year Ended December 31, 2023 2022 2021 Operating lease costs $ 6,864 $ 4,646 $ 4,100 Short-term lease costs 75 44 $ 2,227 Sublease income — — $ (766) Total lease cost $ 6,940 $ 4,690 $ 5,560 Information concerning our operating lease liabilities, which are classified within accounts payable, accrued expenses and other liabilities in our consolidated balance sheets as of December 31, 2023 and 2022, is as follows (dollars in thousands): For the Year Ended December 31, 2023 2022 Cash paid for amounts included in the measurement of lease liabilities —operating $ 5,025 $ 2,129 December 31, 2023 December 31, 2022 Weighted-average remaining lease term 12.0 years 13.0 years Weighted-average discount rate 8.8% 8.7% |
Schedule of Future Maturity of Operating Leases | Future maturity of operating lease liabilities: 2024 $ 5,145 2025 5,320 2026 5,275 2027 4,829 2028 4,868 Thereafter 41,543 Total 66,980 Less interest component (29,325) Operating lease liability $ 37,655 |
Segment and Geographic Data (Ta
Segment and Geographic Data (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Results of Operations by Business Segment | The table below presents our results of operations for the year ended December 31, 2023 by business segment (amounts in thousands): Commercial and Infrastructure Property Investing Corporate Subtotal Securitization Total Revenues: Interest income from loans $ 1,557,631 $ 236,884 $ — $ 9,589 $ — $ 1,804,104 $ — $ 1,804,104 Interest income from investment securities 135,130 1,805 — 92,147 — 229,082 (152,558) 76,524 Servicing fees 553 — — 44,895 — 45,448 (12,327) 33,121 Rental income 8,369 — 93,459 25,838 — 127,666 — 127,666 Other revenues 2,527 1,296 713 2,335 1,622 8,493 — 8,493 Total revenues 1,704,210 239,985 94,172 174,804 1,622 2,214,793 (164,885) 2,049,908 Costs and expenses: Management fees 496 — — — 141,047 141,543 — 141,543 Interest expense 971,028 141,016 54,522 34,611 235,776 1,436,953 (846) 1,436,107 General and administrative 55,782 15,569 4,155 87,619 17,087 180,212 — 180,212 Acquisition and investment pursuit costs 1,128 17 (5) (215) — 925 — 925 Costs of rental operations 8,777 — 22,806 13,259 — 44,842 — 44,842 Depreciation and amortization 7,206 103 31,960 9,788 84 49,141 — 49,141 Credit loss provision, net 225,720 18,008 — — — 243,728 — 243,728 Other expense 1,730 — 23 67 — 1,820 — 1,820 Total costs and expenses 1,271,867 174,713 113,461 145,129 393,994 2,099,164 (846) 2,098,318 Other income (loss): Change in net assets related to consolidated VIEs — — — — — — 181,688 181,688 Change in fair value of servicing rights — — — 401 — 401 1,193 1,594 Change in fair value of investment securities, net 69,259 — — (51,889) — 17,370 (16,603) 767 Change in fair value of mortgage loans, net 25,874 — — 36,828 — 62,702 — 62,702 Income from affordable housing fund investments — — 291,244 — — 291,244 — 291,244 Earnings (loss) from unconsolidated entities 4,410 5,702 — 8,849 — 18,961 (2,239) 16,722 (Loss) gain on sale of investments and other assets, net (112) — — 25,841 — 25,729 — 25,729 (Loss) gain on derivative financial instruments, net (25,206) 123 2,111 (4,348) (11,285) (38,605) — (38,605) Foreign currency gain (loss), net 60,644 201 (11) — — 60,834 — 60,834 Loss on extinguishment of debt (804) — — (434) — (1,238) — (1,238) Other (loss) income, net (135,576) — (5) 29 — (135,552) — (135,552) Total other income (loss) (1,511) 6,026 293,339 15,277 (11,285) 301,846 164,039 465,885 Income (loss) before income taxes 430,832 71,298 274,050 44,952 (403,657) 417,475 — 417,475 Income tax benefit (provision) 990 590 — (898) — 682 — 682 Net income (loss) 431,822 71,888 274,050 44,054 (403,657) 418,157 — 418,157 Net income attributable to non-controlling interests (14) — (77,156) (1,774) — (78,944) — (78,944) Net income (loss) attributable to Starwood Property Trust, Inc . $ 431,808 $ 71,888 $ 196,894 $ 42,280 $ (403,657) $ 339,213 $ — $ 339,213 The table below presents our results of operations for the year ended December 31, 2022 by business segment (amounts in thousands): Commercial and Infrastructure Property Investing Corporate Subtotal Securitization Total Revenues: Interest income from loans $ 1,058,326 $ 150,230 $ — $ 9,965 $ — $ 1,218,521 $ — $ 1,218,521 Interest income from investment securities 102,125 3,681 — 99,043 — 204,849 (139,791) 65,058 Servicing fees 558 — — 54,836 — 55,394 (15,035) 40,359 Rental income 6,467 — 91,587 30,209 — 128,263 — 128,263 Other revenues 504 451 245 11,258 69 12,527 (12) 12,515 Total revenues 1,167,980 154,362 91,832 205,311 69 1,619,554 (154,838) 1,464,716 Costs and expenses: Management fees 592 — — — 154,959 155,551 — 155,551 Interest expense 501,126 79,137 33,938 26,686 157,097 797,984 (863) 797,121 General and administrative 52,701 14,187 4,069 85,478 18,777 175,212 288 175,500 Acquisition and investment pursuit costs 3,634 3 7 (244) — 3,400 — 3,400 Costs of rental operations 7,833 — 21,868 14,414 — 44,115 — 44,115 Depreciation and amortization 4,720 387 32,714 11,472 — 49,293 — 49,293 Credit loss provision, net 39,780 6,877 — — — 46,657 — 46,657 Other expense 1,251 — 55 8 — 1,314 — 1,314 Total costs and expenses 611,637 100,591 92,651 137,814 330,833 1,273,526 (575) 1,272,951 Other income (loss): Change in net assets related to consolidated VIEs — — — — — — 124,001 124,001 Change in fair value of servicing rights — — — (2,051) — (2,051) 3,061 1,010 Change in fair value of investment securities, net 11,818 — — (43,179) — (31,361) 29,157 (2,204) Change in fair value of mortgage loans, net (352,412) — — 6,190 — (346,222) — (346,222) Income from affordable housing fund investments — — 755,736 — — 755,736 — 755,736 (Loss) earnings from unconsolidated entities (11,242) 3,982 — 2,871 — (4,389) (1,934) (6,323) Gain on sale of investments and other assets, net 86,532 — — 51,079 — 137,611 — 137,611 Gain (loss) on derivative financial instruments, net 338,994 1,235 35,081 41,692 (82,987) 334,015 — 334,015 Foreign currency (loss) gain, net (96,651) (317) 12 — — (96,956) — (96,956) Loss on extinguishment of debt (209) (469) — (507) — (1,185) — (1,185) Other (loss) income, net (92,632) — (1,103) — — (93,735) 25 (93,710) Total other income (loss) (115,802) 4,431 789,726 56,095 (82,987) 651,463 154,310 805,773 Income (loss) before income taxes 440,541 58,202 788,907 123,592 (413,751) 997,491 47 997,538 Income tax benefit (provision) 69,199 12 — (7,688) — 61,523 — 61,523 Net income (loss) 509,740 58,214 788,907 115,904 (413,751) 1,059,014 47 1,059,061 Net income attributable to non-controlling interests (14) — (172,598) (14,927) — (187,539) (47) (187,586) Net income (loss) attributable to Starwood Property Trust, Inc . $ 509,726 $ 58,214 $ 616,309 $ 100,977 $ (413,751) $ 871,475 $ — $ 871,475 The table below presents our results of operations for the year ended December 31, 2021 by business segment (amounts in thousands): Commercial and Infrastructure Property Investing Corporate Subtotal Securitization Total Revenues: Interest income from loans $ 705,499 $ 85,057 $ — $ 9,735 $ — $ 800,291 $ — $ 800,291 Interest income from investment securities 67,589 2,190 — 96,771 — 166,550 (121,382) 45,168 Servicing fees 453 — — 58,896 — 59,349 (20,610) 38,739 Rental income 5,486 — 234,840 38,505 — 278,831 — 278,831 Other revenues 294 293 198 6,278 — 7,063 (4) 7,059 Total revenues 779,321 87,540 235,038 210,185 — 1,312,084 (141,996) 1,170,088 Costs and expenses: Management fees 948 — — (793) 167,594 167,749 24 167,773 Interest expense 206,353 37,671 59,970 22,543 119,402 445,939 (852) 445,087 General and administrative 42,000 14,557 8,067 88,879 17,472 170,975 327 171,302 Acquisition and investment pursuit costs 893 250 (60) 101 — 1,184 — 1,184 Costs of rental operations 1,769 — 92,190 17,708 — 111,667 — 111,667 Depreciation and amortization 1,243 402 65,833 15,523 — 83,001 — 83,001 Credit loss (reversal) provision, net (3,560) 11,895 — — — 8,335 — 8,335 Other expense 31 — 583 94 — 708 — 708 Total costs and expenses 249,677 64,775 226,583 144,055 304,468 989,558 (501) 989,057 Other income (loss): Change in net assets related to consolidated VIEs — — — — — — 162,333 162,333 Change in fair value of servicing rights — — — 4,319 — 4,319 (741) 3,578 Change in fair value of investment securities, net (8,277) — — 28,221 — 19,944 (20,331) (387) Change in fair value of mortgage loans, net 13,836 — — 55,214 — 69,050 — 69,050 Income from affordable housing fund investments — — 6,425 — — 6,425 — 6,425 Earnings (loss) from unconsolidated entities 6,984 1,160 — 815 — 8,959 (207) 8,752 Gain on sale of investments and other assets, net 16,584 189 — 22,211 — 38,984 — 38,984 Gain (loss) on derivative financial instruments, net 73,209 1,253 10,155 8,288 (10,542) 82,363 — 82,363 Foreign currency loss, net (36,045) (183) — (64) — (36,292) — (36,292) Loss on extinguishment of debt (289) (1,264) (5,281) (113) (481) (7,428) — (7,428) Other (loss) income, net (7,407) 23 — 70 — (7,314) — (7,314) Total other income (loss) 58,595 1,178 11,299 118,961 (11,023) 179,010 141,054 320,064 Income (loss) before income taxes 588,239 23,943 19,754 185,091 (315,491) 501,536 (441) 501,095 Income tax (provision) benefit (1,201) 306 — (7,775) 1 (8,669) — (8,669) Net income (loss) 587,038 24,249 19,754 177,316 (315,490) 492,867 (441) 492,426 Net (income) loss attributable to non-controlling interests (14) — (20,121) (24,993) — (45,128) 441 (44,687) Net income (loss) attributable to Starwood Property Trust, Inc . $ 587,024 $ 24,249 $ (367) $ 152,323 $ (315,490) $ 447,739 $ — $ 447,739 |
Schedule of Consolidated Balance Sheet by Business Segment | The table below presents our consolidated balance sheet as of December 31, 2023 by business segment (amounts in thousands): Commercial and Infrastructure Property Investing Corporate Subtotal Securitization Total Assets: Cash and cash equivalents $ 8,823 $ 56,300 $ 19,957 $ 22,011 $ 87,569 $ 194,660 $ — $ 194,660 Restricted cash 23,902 28,693 1,016 5,175 58,526 117,312 — 117,312 Loans held-for-investment, net 15,069,389 2,495,660 — 9,200 — 17,574,249 — 17,574,249 Loans held-for-sale 2,604,594 — — 41,043 — 2,645,637 — 2,645,637 Investment securities 1,147,829 19,042 — 1,147,550 — 2,314,421 (1,578,859) 735,562 Properties, net 431,155 — 555,455 59,774 — 1,046,384 — 1,046,384 Properties held-for-sale — — 290,937 — — 290,937 — 290,937 Investments of consolidated affordable housing fund — — 2,012,833 — — 2,012,833 — 2,012,833 Investments in unconsolidated entities 19,151 52,691 — 33,134 — 104,976 (14,600) 90,376 Goodwill — 119,409 — 140,437 — 259,846 — 259,846 Intangible assets 13,415 — 25,432 63,985 — 102,832 (37,865) 64,967 Derivative assets 55,559 84 5,638 2,156 — 63,437 — 63,437 Accrued interest receivable 180,441 12,485 1,502 1,369 5,070 200,867 — 200,867 Other assets 301,436 3,486 50,459 15,828 49,564 420,773 — 420,773 VIE assets, at fair value — — — — — — 43,786,356 43,786,356 Total Assets $ 19,855,694 $ 2,787,850 $ 2,963,229 $ 1,541,662 $ 200,729 $ 27,349,164 $ 42,155,032 $ 69,504,196 Liabilities and Equity Liabilities: Accounts payable, accrued expenses and other liabilities $ 106,236 $ 45,232 $ 12,225 $ 44,452 $ 85,297 $ 293,442 $ — $ 293,442 Related-party payable — — — — 44,816 44,816 — 44,816 Dividends payable — — — — 152,888 152,888 — 152,888 Derivative liabilities 54,066 — — — 48,401 102,467 — 102,467 Secured financing agreements, net 10,368,668 1,088,965 598,350 495,857 1,336,913 13,888,753 (20,757) 13,867,996 Collateralized loan obligations and single asset securitization, net 2,674,938 816,354 — — — 3,491,292 — 3,491,292 Unsecured senior notes, net — — — — 2,158,888 2,158,888 — 2,158,888 Debt related to properties held-for-sale — — 193,691 — — 193,691 — 193,691 VIE liabilities, at fair value — — — — — — 42,175,734 42,175,734 Total Liabilities 13,203,908 1,950,551 804,266 540,309 3,827,203 20,326,237 42,154,977 62,481,214 Temporary Equity: Redeemable non-controlling interests — — 414,348 — — 414,348 — 414,348 Permanent Equity: Starwood Property Trust, Inc. Stockholders’ Equity: Common stock — — — — 3,208 3,208 — 3,208 Additional paid-in capital 1,121,413 664,621 (437,169) (705,176) 5,220,981 5,864,670 — 5,864,670 Treasury stock — — — — (138,022) (138,022) — (138,022) Retained earnings (accumulated deficit) 5,514,906 172,678 1,974,539 1,556,399 (8,712,641) 505,881 — 505,881 Accumulated other comprehensive income 15,352 — — — — 15,352 — 15,352 Total Starwood Property Trust, Inc. Stockholders’ Equity 6,651,671 837,299 1,537,370 851,223 (3,626,474) 6,251,089 — 6,251,089 Non-controlling interests in consolidated subsidiaries 115 — 207,245 150,130 — 357,490 55 357,545 Total Permanent Equity 6,651,786 837,299 1,744,615 1,001,353 (3,626,474) 6,608,579 55 6,608,634 Total Liabilities and Equity $ 19,855,694 $ 2,787,850 $ 2,963,229 $ 1,541,662 $ 200,729 $ 27,349,164 $ 42,155,032 $ 69,504,196 The table below presents our consolidated balance sheet as of December 31, 2022 by business segment (amounts in thousands): Commercial and Infrastructure Property Investing Corporate Subtotal Securitization Total Assets: Cash and cash equivalents $ 68,593 $ 31,153 $ 31,194 $ 39,023 $ 91,098 $ 261,061 $ — $ 261,061 Restricted cash 18,556 31,133 981 5,259 65,143 121,072 — 121,072 Loans held-for-investment, net 16,038,930 2,352,932 — 9,577 — 18,401,439 — 18,401,439 Loans held-for-sale 2,763,458 — — 21,136 — 2,784,594 — 2,784,594 Investment securities 1,250,893 66,204 — 1,165,628 — 2,482,725 (1,666,921) 815,804 Properties, net 463,492 — 864,778 121,716 — 1,449,986 — 1,449,986 Investments of consolidated affordable housing fund — — 1,761,002 — — 1,761,002 — 1,761,002 Investments in unconsolidated entities 25,326 47,078 — 33,030 — 105,434 (13,542) 91,892 Goodwill — 119,409 — 140,437 — 259,846 — 259,846 Intangible assets 11,908 — 29,613 66,310 — 107,831 (39,058) 68,773 Derivative assets 101,082 122 1,803 5,614 — 108,621 — 108,621 Accrued interest receivable 151,852 9,856 863 1,105 5,120 168,796 (275) 168,521 Other assets 170,177 3,614 54,313 12,929 56,444 297,477 — 297,477 VIE assets, at fair value — — — — — — 52,453,041 52,453,041 Total Assets $ 21,064,267 $ 2,661,501 $ 2,744,547 $ 1,621,764 $ 217,805 $ 28,309,884 $ 50,733,245 $ 79,043,129 Liabilities and Equity Liabilities: Accounts payable, accrued expenses and other liabilities $ 146,897 $ 20,656 $ 11,716 $ 46,377 $ 73,353 $ 298,999 $ — $ 298,999 Related-party payable — — — — 41,186 41,186 — 41,186 Dividends payable — — — — 151,511 151,511 — 151,511 Derivative liabilities 21,523 105 — — 69,776 91,404 — 91,404 Secured financing agreements, net 10,804,970 1,042,679 789,719 543,256 1,342,074 14,522,698 (21,166) 14,501,532 Collateralized loan obligations and single asset securitization, net 2,862,211 814,013 — — — 3,676,224 — 3,676,224 Unsecured senior notes, net — — — — 2,329,211 2,329,211 — 2,329,211 VIE liabilities, at fair value — — — — — — 50,754,355 50,754,355 Total Liabilities 13,835,601 1,877,453 801,435 589,633 4,007,111 21,111,233 50,733,189 71,844,422 Temporary Equity: Redeemable non-controlling interests — — 362,790 — — 362,790 — 362,790 Permanent Equity: Starwood Property Trust, Inc. Stockholders’ Equity: Common stock — — — — 3,181 3,181 — 3,181 Additional paid-in capital 2,124,496 683,258 (405,955) (646,662) 4,051,950 5,807,087 — 5,807,087 Treasury stock — — — — (138,022) (138,022) — (138,022) Retained earnings (accumulated deficit) 5,083,100 100,790 1,777,643 1,514,119 (7,706,415) 769,237 — 769,237 Accumulated other comprehensive income 20,955 — — — — 20,955 — 20,955 Total Starwood Property Trust, Inc. Stockholders’ Equity 7,228,551 784,048 1,371,688 867,457 (3,789,306) 6,462,438 — 6,462,438 Non-controlling interests in consolidated subsidiaries 115 — 208,634 164,674 — 373,423 56 373,479 Total Permanent Equity 7,228,666 784,048 1,580,322 1,032,131 (3,789,306) 6,835,861 56 6,835,917 Total Liabilities and Equity $ 21,064,267 $ 2,661,501 $ 2,744,547 $ 1,621,764 $ 217,805 $ 28,309,884 $ 50,733,245 $ 79,043,129 |
Business and Organization (Deta
Business and Organization (Details) | 12 Months Ended |
Dec. 31, 2023 segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of reportable business segments | 4 |
Minimum annual REIT taxable income distributable to stockholders (as a percent) | 90% |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) | 12 Months Ended | |||||
Nov. 06, 2021 USD ($) | Nov. 05, 2021 USD ($) unit property | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
REO assets as a percent of consolidated VIE assets | 2% | |||||
Loans as a percent of consolidated VIE assets | 98% | |||||
Permitted reinvestment under static investment in VIEs | $ 0 | |||||
Number of properties in portfolio investment | property | 59 | |||||
Number of units in portfolio investment | unit | 15,057 | |||||
Contributions from non-controlling interests | 2,724,000 | $ 21,925,000 | $ 219,757,000 | |||
Cumulative effect of investment company fair value adjustment | $ 1,236,476,000 | |||||
Accounting Standards Update [Extensible List] | Accounting Standards Update 2020-06 [Member] | |||||
Retained earnings (accumulated deficit) | $ 505,881,000 | $ 769,237,000 | ||||
Cumulative Effect, Period of Adoption, Adjustment | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Additional paid-in capital | $ (3,700,000) | |||||
Retained earnings (accumulated deficit) | $ (2,200,000) | |||||
Woodstar Fund | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Percentage of interest sold | 20.60% | |||||
Contributions from non-controlling interests | $ 214,200,000 | $ 216,000,000 | ||||
Fund term | 8 years |
Acquisitions and Divestitures (
Acquisitions and Divestitures (Details) | 12 Months Ended | |||||
Dec. 31, 2023 USD ($) residential_unit property | Dec. 31, 2022 USD ($) property | Dec. 31, 2021 USD ($) property | Nov. 05, 2021 | Apr. 30, 2019 USD ($) | Mar. 31, 2019 USD ($) | |
Business Acquisition [Line Items] | ||||||
Carrying Value | $ 20,528,925,000 | $ 21,285,446,000 | ||||
Woodstar Fund | ||||||
Business Acquisition [Line Items] | ||||||
Percentage of interest sold | 20.60% | |||||
Commercial and Residential Lending Segment | ||||||
Business Acquisition [Line Items] | ||||||
Loan with related allowance, unpaid principal | $ 20,900,000 | |||||
Commercial and Residential Lending Segment | Orlando, Florida | Credit deteriorated | ||||||
Business Acquisition [Line Items] | ||||||
Carrying Value | $ 18,500,000 | |||||
Commercial and Residential Lending Segment | Montgomery Alabama | ||||||
Business Acquisition [Line Items] | ||||||
Allowance | 8,300,000 | |||||
Unamortized discount | 3,600,000 | |||||
Commercial and Residential Lending Segment | Montgomery Alabama | Credit deteriorated | ||||||
Business Acquisition [Line Items] | ||||||
Carrying Value | $ 9,000,000 | |||||
Operating Properties | Investing and Servicing Segment | ||||||
Business Acquisition [Line Items] | ||||||
Number of properties sold | property | 4 | 3 | 2 | |||
Proceeds from sale of operating properties | $ 63,700,000 | $ 92,100,000 | $ 68,700,000 | |||
Gain on sale of property | 25,600,000 | 50,900,000 | 22,200,000 | |||
Deconsolidation of subsidiary | 10,200,000 | |||||
Gain on sale of property attributable to noncontrolling interest | 600,000 | |||||
Operating Properties | Commercial and Residential Lending Segment | Orlando, Florida | ||||||
Business Acquisition [Line Items] | ||||||
Proceeds from sale of operating properties | 114,800,000 | |||||
Gain on sale of property | 86,600,000 | |||||
Operating Properties | Commercial and Residential Lending Segment | Montgomery Alabama | ||||||
Business Acquisition [Line Items] | ||||||
Proceeds from sale of operating properties | 114,800,000 | 31,200,000 | ||||
Gain on sale of property | $ 86,600,000 | $ 17,700,000 | ||||
Residential Units | Commercial and Residential Lending Segment | ||||||
Business Acquisition [Line Items] | ||||||
Proceeds from sale of operating properties | 12,100,000 | |||||
Gain on sale of property | $ 0 | |||||
Number of residential units sold | residential_unit | 4 |
Restricted Cash (Details)
Restricted Cash (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Cash and Cash Equivalents [Abstract] | ||
Cash collateral for derivative financial instruments | $ 80,219 | $ 69,607 |
Cash restricted by lender | 34,450 | 49,727 |
Funds held on behalf of borrowers and tenants | 1,300 | 1,255 |
Other restricted cash | 1,343 | 483 |
Restricted cash | $ 117,312 | $ 121,072 |
Loans - Held for Investment (De
Loans - Held for Investment (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Investments in loans | ||||
Carrying Value | $ 20,528,925 | $ 21,285,446 | ||
Face Amount | 20,934,221 | 21,734,785 | ||
Credit loss allowances | (309,039) | (99,413) | ||
Total net loans | 20,219,886 | $ 21,186,033 | $ 18,413,649 | $ 12,139,908 |
Commercial Portfolio Segment | ||||
Investments in loans | ||||
Carrying Value | 15,377,364 | |||
Credit loss allowances | (298,775) | |||
Infrastructure Portfolio Segment | ||||
Investments in loans | ||||
Carrying Value | 2,505,924 | |||
Credit loss allowances | $ (10,264) | |||
Residential Portfolio Segment | ||||
Investments in loans | ||||
Weighted Average Life | 27 years 9 months 18 days | 28 years 9 months 18 days | ||
Loans held for investment | ||||
Investments in loans | ||||
Carrying Value | $ 17,883,288 | $ 18,500,852 | ||
Face Amount | 17,979,695 | 18,617,970 | ||
Credit loss allowances | (309,039) | (99,413) | ||
Loans held for investment | Commercial Portfolio Segment | ||||
Investments in loans | ||||
Carrying Value | 15,377,364 | 16,137,308 | ||
Face Amount | 15,429,451 | 16,222,208 | ||
Credit loss allowances | (298,775) | (88,801) | ||
Total net loans | 15,078,589 | 16,048,507 | 13,450,198 | 9,583,949 |
Loans held for investment | Infrastructure Portfolio Segment | ||||
Investments in loans | ||||
Carrying Value | 2,505,924 | 2,363,544 | ||
Face Amount | $ 2,550,244 | $ 2,395,762 | ||
Weighted Average Life | 3 years 10 months 24 days | 3 years 10 months 24 days | ||
Credit loss allowances | $ (10,264) | $ (10,612) | ||
Total net loans | 2,495,660 | 2,352,932 | 2,027,426 | 1,412,440 |
Loans held for investment | Residential Portfolio Segment | ||||
Investments in loans | ||||
Total net loans | $ 0 | $ 0 | 59,225 | 90,684 |
Loans held for investment | Weighted-average | Infrastructure Portfolio Segment | ||||
Investments in loans | ||||
Weighted Average Coupon | 9.50% | 8.60% | ||
Loans under fair value option | ||||
Investments in loans | ||||
Carrying Value | $ 2,645,637 | $ 2,784,594 | ||
Face Amount | 2,954,526 | 3,116,815 | ||
Credit loss allowances | 0 | |||
Total net loans | 2,645,637 | 2,784,594 | $ 2,876,800 | $ 1,052,835 |
Loans under fair value option | Residential, fair value option | ||||
Investments in loans | ||||
Carrying Value | 2,604,594 | 2,763,458 | ||
Face Amount | 2,909,126 | 3,092,915 | ||
Loans under fair value option | Commercial, fair value option | ||||
Investments in loans | ||||
Carrying Value | 41,043 | 21,136 | ||
Face Amount | $ 45,400 | $ 23,900 | ||
Weighted Average Life | 5 years 2 months 12 days | 8 years 7 months 6 days | ||
Loans under fair value option | Weighted-average | Residential, fair value option | ||||
Investments in loans | ||||
Weighted Average Coupon | 4.50% | 4.50% | ||
Loans under fair value option | Weighted-average | Commercial, fair value option | ||||
Investments in loans | ||||
Weighted Average Coupon | 5.50% | 5.70% | ||
First Mortgages | Loans held for investment | ||||
Investments in loans | ||||
Carrying Value | $ 14,956,646 | $ 15,562,452 | ||
Face Amount | $ 15,005,827 | $ 15,648,358 | ||
Weighted Average Life | 2 years 9 months 18 days | 3 years 3 months 18 days | ||
First Mortgages | Loans held for investment | Weighted-average | ||||
Investments in loans | ||||
Weighted Average Coupon | 9% | 7.90% | ||
Subordinated Mortgages | Loans held for investment | ||||
Investments in loans | ||||
Carrying Value | $ 76,560 | $ 71,100 | ||
Face Amount | $ 76,882 | $ 72,118 | ||
Weighted Average Life | 2 years 2 months 12 days | 3 years 2 months 12 days | ||
Subordinated Mortgages | Loans held for investment | Weighted-average | ||||
Investments in loans | ||||
Weighted Average Coupon | 14.80% | 13.60% | ||
Mezzanine Loans | ||||
Investments in loans | ||||
Total net loans | $ 1,000,000 | $ 1,300,000 | ||
Mezzanine Loans | Loans held for investment | ||||
Investments in loans | ||||
Carrying Value | 273,146 | 445,363 | ||
Face Amount | $ 274,899 | $ 442,339 | ||
Weighted Average Life | 2 years 8 months 12 days | 1 year 10 months 24 days | ||
Mezzanine Loans | Loans held for investment | Weighted-average | ||||
Investments in loans | ||||
Weighted Average Coupon | 13.70% | 12.90% | ||
Other | Loans held for investment | ||||
Investments in loans | ||||
Carrying Value | $ 71,012 | $ 58,393 | ||
Face Amount | $ 71,843 | $ 59,393 | ||
Weighted Average Life | 1 year 9 months 18 days | 1 year 8 months 12 days | ||
Other | Loans held for investment | Weighted-average | ||||
Investments in loans | ||||
Weighted Average Coupon | 9.60% | 8.20% |
Loans - Variable Rate Loans Hel
Loans - Variable Rate Loans Held for Investment (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Variable rate loans held-for-investment | |
Carrying Value | $ 17,089,364 |
Weighted-average Spread Above Index | 4% |
Commercial loans | |
Variable rate loans held-for-investment | |
Carrying Value | $ 14,583,440 |
Weighted-average Spread Above Index | 4% |
Infrastructure loans | |
Variable rate loans held-for-investment | |
Carrying Value | $ 2,505,924 |
Weighted-average Spread Above Index | 4.10% |
Loans - Risk Ratings by Class o
Loans - Risk Ratings by Class of Loan (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Investments in loans | ||
Total Amortized Cost Basis | $ 20,528,925 | $ 21,285,446 |
Credit Loss Allowance | 309,039 | 99,413 |
Loans under fair value option | ||
Investments in loans | ||
Total Amortized Cost Basis | 2,645,637 | $ 2,784,594 |
Credit Loss Allowance | 0 | |
Commercial Portfolio Segment | ||
Investments in loans | ||
2023 | 915,656 | |
2022 | 4,123,106 | |
2021 | 6,985,760 | |
2020 | 737,416 | |
2019 | 1,456,090 | |
Prior | 1,159,336 | |
Revolving Loans Amortized Cost Total | 0 | |
Total Amortized Cost Basis | 15,377,364 | |
Credit Loss Allowance | 298,775 | |
Commercial Portfolio Segment | LTV less than 60% | ||
Investments in loans | ||
2023 | 321,465 | |
2022 | 2,040,870 | |
2021 | 2,979,413 | |
2020 | 188,140 | |
2019 | 937,355 | |
Prior | 232,009 | |
Revolving Loans Amortized Cost Total | 0 | |
Total Amortized Cost Basis | 6,699,252 | |
Credit Loss Allowance | 24,939 | |
Commercial Portfolio Segment | LTV 60% - 70% | ||
Investments in loans | ||
2023 | 518,912 | |
2022 | 1,937,799 | |
2021 | 3,522,841 | |
2020 | 97,805 | |
2019 | 85,287 | |
Prior | 318,432 | |
Revolving Loans Amortized Cost Total | 0 | |
Total Amortized Cost Basis | 6,481,076 | |
Credit Loss Allowance | 78,495 | |
Commercial Portfolio Segment | LTV > 70% | ||
Investments in loans | ||
2023 | 60,905 | |
2022 | 102,732 | |
2021 | 483,506 | |
2020 | 451,471 | |
2019 | 433,448 | |
Prior | 589,037 | |
Revolving Loans Amortized Cost Total | 0 | |
Total Amortized Cost Basis | 2,121,099 | |
Credit Loss Allowance | 190,416 | |
Commercial Portfolio Segment | Credit deteriorated | ||
Investments in loans | ||
2023 | 0 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 4,925 | |
Revolving Loans Amortized Cost Total | 0 | |
Total Amortized Cost Basis | 4,925 | |
Credit Loss Allowance | 4,925 | |
Commercial Portfolio Segment | Defeased and other | ||
Investments in loans | ||
2023 | 14,374 | |
2022 | 41,705 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 14,933 | |
Revolving Loans Amortized Cost Total | 0 | |
Total Amortized Cost Basis | 71,012 | |
Credit Loss Allowance | 0 | |
Infrastructure Portfolio Segment | ||
Investments in loans | ||
2023 | 900,990 | |
2022 | 136,704 | |
2021 | 317,479 | |
2020 | 72,687 | |
2019 | 494,924 | |
Prior | 577,859 | |
Revolving Loans Amortized Cost Total | 5,281 | |
Total Amortized Cost Basis | 2,505,924 | |
Credit Loss Allowance | 10,264 | |
Infrastructure Portfolio Segment | Power | ||
Investments in loans | ||
2023 | 441,646 | |
2022 | 0 | |
2021 | 106,343 | |
2020 | 72,687 | |
2019 | 276,795 | |
Prior | 442,784 | |
Revolving Loans Amortized Cost Total | 3,213 | |
Total Amortized Cost Basis | 1,343,468 | |
Credit Loss Allowance | 4,099 | |
Infrastructure Portfolio Segment | Oil and gas | ||
Investments in loans | ||
2023 | 410,674 | |
2022 | 136,704 | |
2021 | 211,136 | |
2020 | 0 | |
2019 | 218,129 | |
Prior | 135,075 | |
Revolving Loans Amortized Cost Total | 2,068 | |
Total Amortized Cost Basis | 1,113,786 | |
Credit Loss Allowance | 6,009 | |
Infrastructure Portfolio Segment | Other | ||
Investments in loans | ||
2023 | 48,670 | |
2022 | 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Prior | 0 | |
Revolving Loans Amortized Cost Total | 0 | |
Total Amortized Cost Basis | 48,670 | |
Credit Loss Allowance | $ 156 |
Loans - Narrative (Details)
Loans - Narrative (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
Dec. 31, 2023 USD ($) | May 31, 2023 USD ($) | Dec. 31, 2023 USD ($) loan | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Mar. 31, 2021 USD ($) | |
Investments in loans | ||||||
Carrying Value | $ 20,528,925 | $ 20,528,925 | $ 21,285,446 | |||
Carrying value of loan | 102,774 | 290,311 | $ 36,308 | |||
Properties, net | 1,046,384 | 1,046,384 | 1,449,986 | |||
Intangible assets | 64,967 | $ 64,967 | $ 68,773 | $ 63,564 | ||
Number of loans modified | loan | 3 | |||||
Commercial Portfolio Segment | ||||||
Investments in loans | ||||||
Carrying Value | 15,377,364 | $ 15,377,364 | ||||
Infrastructure Portfolio Segment | ||||||
Investments in loans | ||||||
Carrying Value | 2,505,924 | 2,505,924 | ||||
Mortgage Loan | California | Commercial Portfolio Segment | ||||||
Investments in loans | ||||||
Carrying Value | 197,200 | $ 197,200 | ||||
Granted team extension period | 19 months | |||||
Preferred equity commitment | 25,100 | $ 25,100 | ||||
Unfunded commitments | 15,500 | 15,500 | ||||
Mortgage Loan | PENNSYLVANIA | Commercial Portfolio Segment | ||||||
Investments in loans | ||||||
Carrying Value | $ 95,500 | $ 95,500 | ||||
Stated interest rate | 6% | 6% | ||||
Payments received from loan modifications | $ 2,500 | |||||
Mortgage Loan | ARIZONA | Commercial Portfolio Segment | ||||||
Investments in loans | ||||||
Carrying Value | $ 44,900 | 44,900 | ||||
Payments received from loan modifications | $ 1,600 | |||||
Decrease in interest rate | 0.50% | |||||
Mortgage Loan | ARIZONA | Commercial Portfolio Segment | SOFR | ||||||
Investments in loans | ||||||
Basis spread | 2.85% | 2.85% | ||||
Senior Loans | Chicago | Commercial Portfolio Segment | ||||||
Investments in loans | ||||||
Carrying value of loan | $ 41,100 | |||||
Properties, net | 36,800 | |||||
Intangible assets | $ 4,300 | |||||
First Mortgage and Mezzanine | Pacific Northwest | Commercial Portfolio Segment | ||||||
Investments in loans | ||||||
Carrying value of loan | $ 60,800 | |||||
Properties, net | 60,800 | $ 60,800 | ||||
Credit deteriorated | Commercial Portfolio Segment | ||||||
Investments in loans | ||||||
Carrying Value | 4,925 | 4,925 | ||||
Credit deteriorated | Senior Loans | Chicago | Infrastructure Portfolio Segment | ||||||
Investments in loans | ||||||
Carrying Value | 4,900 | 4,900 | ||||
90 days or greater past due | Non-Credit Deterioration | ||||||
Investments in loans | ||||||
Carrying Value | 488,900 | 488,900 | ||||
Past due loan converted to equity interests | $ 7,300 | |||||
90 days or greater past due | Non-Credit Deterioration | Residential Portfolio Segment | ||||||
Investments in loans | ||||||
Carrying Value | 67,600 | 67,600 | ||||
90 days or greater past due | Non-Credit Deterioration | Mortgage Loan | Texas | Commercial Portfolio Segment | ||||||
Investments in loans | ||||||
Carrying Value | 252,000 | 252,000 | ||||
90 days or greater past due | Non-Credit Deterioration | Mortgage Loan | DISTRICT OF COLUMBIA | Commercial Portfolio Segment | ||||||
Investments in loans | ||||||
Carrying Value | 122,300 | 122,300 | ||||
90 days or greater past due | Non-Credit Deterioration | Mortgage Loan | VIRGINIA | Commercial Portfolio Segment | ||||||
Investments in loans | ||||||
Carrying Value | 124,300 | 124,300 | ||||
90 days or greater past due | Non-Credit Deterioration | Leasehold Mortgage Loan | California | Commercial Portfolio Segment | ||||||
Investments in loans | ||||||
Carrying Value | 37,800 | 37,800 | ||||
90 days or greater past due | Non-Credit Deterioration | Senior Loans | New York | Commercial Portfolio Segment | ||||||
Investments in loans | ||||||
Carrying Value | 9,200 | 9,200 | ||||
Financial Asset, Less Than 90 Days Past Due | Non-Credit Deterioration | ||||||
Investments in loans | ||||||
Past due loan converted to equity interests | 7,300 | 7,300 | ||||
Financial Asset, Less Than 90 Days Past Due | Non-Credit Deterioration | Senior Loans | New Jersey | Commercial Portfolio Segment | ||||||
Investments in loans | ||||||
Carrying Value | $ 185,400 | 185,400 | ||||
Proceeds from collection of loans receivable | $ 54,900 |
Loans - Activity in Portfolio (
Loans - Activity in Portfolio (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2023 USD ($) power_plant | May 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | May 31, 2022 USD ($) | Feb. 28, 2022 USD ($) | Dec. 31, 2023 USD ($) power_plant | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Apr. 30, 2021 USD ($) | Mar. 31, 2021 USD ($) | |
Activity in allowance for loan losses | ||||||||||
Credit loss allowance at beginning of the period | $ 99,413 | |||||||||
Credit loss (reversal) provision, net | 232,712 | $ 49,049 | $ 4,633 | |||||||
Credit loss allowance at the end of the period | $ 309,039 | $ 99,413 | 309,039 | 99,413 | ||||||
Activity in loan portfolio | ||||||||||
Balance at the beginning of the period | 21,186,033 | 18,413,649 | 12,139,908 | |||||||
Acquisitions/originations/additional funding | 3,474,242 | 10,178,734 | 13,990,579 | |||||||
Capitalized interest | 125,747 | 124,150 | 119,136 | |||||||
Basis of loans sold | (866,104) | (4,253,551) | (4,176,868) | |||||||
Loan maturities/principal repayments | (3,647,171) | (2,258,630) | (4,197,809) | |||||||
Discount accretion/premium amortization | 67,112 | 62,557 | 57,948 | |||||||
Changes in fair value | 62,702 | (346,222) | 69,050 | |||||||
Foreign currency translation gain (loss), net | 153,472 | (306,946) | (72,130) | |||||||
Credit loss provision, net | (232,712) | (49,049) | (4,633) | |||||||
Loan foreclosure, equity control and conversion to equity interest | (102,774) | (290,311) | (36,308) | |||||||
Transfer to/from other asset/liability classifications or between segments | (661) | (88,348) | 524,776 | |||||||
Balance at the end of the period | 20,219,886 | 21,186,033 | 20,219,886 | 21,186,033 | 18,413,649 | |||||
Carrying Value | 20,528,925 | 21,285,446 | 20,528,925 | 21,285,446 | ||||||
Texas Mezzanine Borrower | ||||||||||
Activity in loan portfolio | ||||||||||
Net consideration transferred | $ 50,200 | |||||||||
90 days or greater past due | Non-Credit Deterioration | ||||||||||
Activity in loan portfolio | ||||||||||
Carrying Value | $ 488,900 | $ 488,900 | ||||||||
Past due loan converted to equity interests | $ 7,300 | |||||||||
Chicago | ||||||||||
Activity in allowance for loan losses | ||||||||||
Number of natural gas power plants | power_plant | 2 | 2 | ||||||||
Unfunded commitments | ||||||||||
Activity in allowance for loan losses | ||||||||||
Credit loss allowance at beginning of the period | $ 9,873 | 6,837 | 6,070 | |||||||
Credit loss (reversal) provision, net | 1,055 | 3,036 | 767 | |||||||
Credit loss allowance at the end of the period | $ 10,928 | 9,873 | 10,928 | 9,873 | 6,837 | |||||
Unfunded commitments | 1,346,445 | 1,346,445 | ||||||||
Activity in loan portfolio | ||||||||||
Credit loss provision, net | (1,055) | (3,036) | (767) | |||||||
HTM Preferred Intrests | ||||||||||
Activity in allowance for loan losses | ||||||||||
Credit loss allowance at beginning of the period | 0 | 0 | 0 | |||||||
Credit loss (reversal) provision, net | 1,548 | 0 | 0 | |||||||
Credit loss allowance at the end of the period | 1,548 | 0 | 1,548 | 0 | 0 | |||||
Unfunded commitments | 8,282 | 8,282 | ||||||||
Activity in loan portfolio | ||||||||||
Credit loss provision, net | (1,548) | 0 | 0 | |||||||
CMBS | ||||||||||
Activity in allowance for loan losses | ||||||||||
Credit loss allowance at beginning of the period | 52 | 0 | 0 | |||||||
Credit loss (reversal) provision, net | 22 | 52 | 0 | |||||||
Credit loss allowance at the end of the period | 74 | 52 | 74 | 52 | 0 | |||||
Unfunded commitments | 34,743 | 34,743 | ||||||||
Activity in loan portfolio | ||||||||||
Credit loss provision, net | (22) | (52) | 0 | |||||||
Residential Loans | Commercial and Residential Lending Segment | ||||||||||
Activity in loan portfolio | ||||||||||
Face amount | 0 | 1,057,013 | 216,827 | |||||||
Residential Loans | Agency-Eligible Residential Loan | Commercial and Residential Lending Segment | ||||||||||
Activity in loan portfolio | ||||||||||
Face amount | $ 745,000 | 745,000 | ||||||||
Contingency expense | 88,400 | |||||||||
Total loans held-for-investment | ||||||||||
Activity in allowance for loan losses | ||||||||||
Credit loss allowance at beginning of the period | 99,413 | |||||||||
Credit loss allowance at the end of the period | 309,039 | 99,413 | 309,039 | 99,413 | ||||||
Activity in loan portfolio | ||||||||||
Carrying Value | 17,883,288 | 18,500,852 | 17,883,288 | 18,500,852 | ||||||
Total loans held-for-investment | First mortgage loan participation | ||||||||||
Activity in loan portfolio | ||||||||||
Carrying Value | 14,956,646 | 15,562,452 | 14,956,646 | 15,562,452 | ||||||
Loans under fair value option | ||||||||||
Activity in allowance for loan losses | ||||||||||
Credit loss (reversal) provision, net | 0 | 0 | 0 | |||||||
Credit loss allowance at the end of the period | 0 | 0 | ||||||||
Activity in loan portfolio | ||||||||||
Balance at the beginning of the period | 2,784,594 | 2,876,800 | 1,052,835 | |||||||
Acquisitions/originations/additional funding | 757,355 | 4,634,722 | 5,351,034 | |||||||
Capitalized interest | 172 | 508 | 2,650 | |||||||
Basis of loans sold | (813,104) | (4,216,618) | (3,856,736) | |||||||
Loan maturities/principal repayments | (185,884) | (193,105) | (352,711) | |||||||
Discount accretion/premium amortization | 0 | 0 | 504 | |||||||
Changes in fair value | 62,702 | (343,053) | 67,864 | |||||||
Foreign currency translation gain (loss), net | 0 | 0 | 0 | |||||||
Credit loss provision, net | 0 | 0 | 0 | |||||||
Loan foreclosure, equity control and conversion to equity interest | (929) | 0 | 0 | |||||||
Transfer to/from other asset/liability classifications or between segments | 40,731 | 25,340 | 611,360 | |||||||
Balance at the end of the period | 2,645,637 | 2,784,594 | 2,645,637 | 2,784,594 | 2,876,800 | |||||
Carrying Value | 2,645,637 | 2,784,594 | 2,645,637 | 2,784,594 | ||||||
Funded commitments | ||||||||||
Activity in allowance for loan losses | ||||||||||
Credit loss allowance at beginning of the period | 99,413 | 67,270 | 77,444 | |||||||
Credit loss (reversal) provision, net | 232,712 | 49,049 | 4,633 | |||||||
Charge-offs | (23,086) | (16,906) | (14,807) | |||||||
Transfers | 0 | |||||||||
Credit loss allowance at the end of the period | 309,039 | 99,413 | 309,039 | 99,413 | 67,270 | |||||
Charge-offs | 23,086 | 16,906 | 14,807 | |||||||
Activity in loan portfolio | ||||||||||
Credit loss provision, net | (232,712) | (49,049) | (4,633) | |||||||
Commercial Portfolio Segment | ||||||||||
Activity in allowance for loan losses | ||||||||||
Credit loss allowance at the end of the period | 298,775 | 298,775 | ||||||||
Activity in loan portfolio | ||||||||||
Carrying Value | 15,377,364 | 15,377,364 | ||||||||
Commercial Portfolio Segment | Credit deteriorated | ||||||||||
Activity in allowance for loan losses | ||||||||||
Credit loss allowance at the end of the period | 4,925 | 4,925 | ||||||||
Activity in loan portfolio | ||||||||||
Carrying Value | 4,925 | 4,925 | ||||||||
Commercial Portfolio Segment | Senior Loans | Chicago | ||||||||||
Activity in loan portfolio | ||||||||||
Loan foreclosure, equity control and conversion to equity interest | $ (41,100) | |||||||||
Commercial Portfolio Segment | Senior Loans | California | ||||||||||
Activity in loan portfolio | ||||||||||
Loan converted to equity interest | 223,800 | |||||||||
Commercial Portfolio Segment | Senior Loans | New York | 90 days or greater past due | Non-Credit Deterioration | ||||||||||
Activity in loan portfolio | ||||||||||
Carrying Value | 9,200 | 9,200 | ||||||||
Commercial Portfolio Segment | Mortgage Loan And Mezzanine Loan | Pacific Northwest | ||||||||||
Activity in loan portfolio | ||||||||||
Loan foreclosure, equity control and conversion to equity interest | (60,800) | |||||||||
Commercial Portfolio Segment | Total loans held-for-investment | ||||||||||
Activity in allowance for loan losses | ||||||||||
Credit loss allowance at beginning of the period | 88,801 | |||||||||
Credit loss (reversal) provision, net | 222,266 | 42,201 | (7,947) | |||||||
Credit loss allowance at the end of the period | 298,775 | 88,801 | 298,775 | 88,801 | ||||||
Activity in loan portfolio | ||||||||||
Balance at the beginning of the period | 16,048,507 | 13,450,198 | 9,583,949 | |||||||
Acquisitions/originations/additional funding | 1,713,979 | 4,882,414 | 7,822,441 | |||||||
Capitalized interest | 125,057 | 121,500 | 112,178 | |||||||
Basis of loans sold | (53,000) | (10,109) | (307,454) | |||||||
Loan maturities/principal repayments | (2,596,738) | (1,764,638) | (3,508,969) | |||||||
Discount accretion/premium amortization | 53,418 | 52,939 | 52,416 | |||||||
Changes in fair value | 0 | 0 | 0 | |||||||
Foreign currency translation gain (loss), net | 152,869 | (304,051) | (71,419) | |||||||
Credit loss provision, net | (222,266) | (42,201) | 7,947 | |||||||
Loan foreclosure, equity control and conversion to equity interest | (101,845) | (273,929) | (36,308) | |||||||
Transfer to/from other asset/liability classifications or between segments | (41,392) | (63,616) | (204,583) | |||||||
Balance at the end of the period | 15,078,589 | 16,048,507 | 15,078,589 | 16,048,507 | 13,450,198 | |||||
Carrying Value | 15,377,364 | 16,137,308 | 15,377,364 | 16,137,308 | ||||||
Commercial Portfolio Segment | Funded commitments | ||||||||||
Activity in allowance for loan losses | ||||||||||
Credit loss allowance at beginning of the period | 88,801 | 46,600 | 69,611 | |||||||
Credit loss (reversal) provision, net | 222,266 | 42,201 | (7,947) | |||||||
Charge-offs | (12,292) | 0 | (14,807) | |||||||
Transfers | (257) | |||||||||
Credit loss allowance at the end of the period | 298,775 | 88,801 | 298,775 | 88,801 | 46,600 | |||||
Charge-offs | 12,292 | 0 | 14,807 | |||||||
Activity in loan portfolio | ||||||||||
Credit loss provision, net | (222,266) | (42,201) | 7,947 | |||||||
Commercial Portfolio Segment | Funded commitments | Chicago | ||||||||||
Activity in allowance for loan losses | ||||||||||
Charge-offs | (7,000) | |||||||||
Charge-offs | 7,000 | |||||||||
Commercial Portfolio Segment | Funded commitments | New York | ||||||||||
Activity in allowance for loan losses | ||||||||||
Charge-offs | (7,800) | |||||||||
Charge-offs | 7,800 | |||||||||
Commercial Portfolio Segment | Unfunded Loan Commitment, Loans Held-For-Investment | ||||||||||
Activity in allowance for loan losses | ||||||||||
Credit loss allowance at beginning of the period | 9,749 | 6,692 | 5,258 | |||||||
Credit loss (reversal) provision, net | (1,007) | 3,057 | 1,434 | |||||||
Credit loss allowance at the end of the period | 8,742 | 9,749 | 8,742 | 9,749 | 6,692 | |||||
Unfunded commitments | 1,237,874 | 1,237,874 | ||||||||
Activity in loan portfolio | ||||||||||
Credit loss provision, net | 1,007 | (3,057) | (1,434) | |||||||
Infrastructure Portfolio Segment | ||||||||||
Activity in allowance for loan losses | ||||||||||
Credit loss allowance at the end of the period | 10,264 | 10,264 | ||||||||
Activity in loan portfolio | ||||||||||
Carrying Value | 2,505,924 | 2,505,924 | ||||||||
Infrastructure Portfolio Segment | Infrastructure Loans | Chicago | Credit deteriorated | ||||||||||
Activity in allowance for loan losses | ||||||||||
Charge-offs | (10,800) | |||||||||
Charge-offs | 10,800 | |||||||||
Infrastructure Portfolio Segment | Senior Loans | Chicago | Credit deteriorated | ||||||||||
Activity in loan portfolio | ||||||||||
Carrying Value | 4,900 | 4,900 | ||||||||
Infrastructure Portfolio Segment | Senior Loans | Massachusetts | ||||||||||
Activity in loan portfolio | ||||||||||
Loan converted to equity interest | 16,400 | |||||||||
Infrastructure Portfolio Segment | Total loans held-for-investment | ||||||||||
Activity in allowance for loan losses | ||||||||||
Credit loss allowance at beginning of the period | 10,612 | |||||||||
Credit loss (reversal) provision, net | 10,446 | 6,848 | 12,580 | |||||||
Credit loss allowance at the end of the period | 10,264 | 10,612 | 10,264 | 10,612 | ||||||
Activity in loan portfolio | ||||||||||
Balance at the beginning of the period | 2,352,932 | 2,027,426 | 1,412,440 | |||||||
Acquisitions/originations/additional funding | 1,002,908 | 661,598 | 817,104 | |||||||
Capitalized interest | 518 | 503 | 0 | |||||||
Basis of loans sold | 0 | (26,824) | (12,678) | |||||||
Loan maturities/principal repayments | (864,549) | (293,264) | (304,878) | |||||||
Discount accretion/premium amortization | 13,694 | 9,618 | 5,028 | |||||||
Changes in fair value | 0 | 0 | 0 | |||||||
Foreign currency translation gain (loss), net | 603 | (2,895) | (711) | |||||||
Credit loss provision, net | (10,446) | (6,848) | (12,580) | |||||||
Loan foreclosure, equity control and conversion to equity interest | 0 | (16,382) | 0 | |||||||
Transfer to/from other asset/liability classifications or between segments | 0 | 0 | 123,701 | |||||||
Balance at the end of the period | 2,495,660 | 2,352,932 | 2,495,660 | 2,352,932 | 2,027,426 | |||||
Carrying Value | 2,505,924 | 2,363,544 | 2,505,924 | 2,363,544 | ||||||
Infrastructure Portfolio Segment | Funded commitments | ||||||||||
Activity in allowance for loan losses | ||||||||||
Credit loss allowance at beginning of the period | 10,612 | 20,670 | 7,833 | |||||||
Credit loss (reversal) provision, net | 10,446 | 6,848 | 12,580 | |||||||
Charge-offs | (10,794) | (16,906) | 0 | |||||||
Transfers | 257 | |||||||||
Credit loss allowance at the end of the period | 10,264 | 10,612 | 10,264 | 10,612 | 20,670 | |||||
Charge-offs | 10,794 | 16,906 | 0 | |||||||
Activity in loan portfolio | ||||||||||
Credit loss provision, net | (10,446) | (6,848) | (12,580) | |||||||
Infrastructure Portfolio Segment | Unfunded Loan Commitment, Loans Held-For-Investment | ||||||||||
Activity in allowance for loan losses | ||||||||||
Credit loss allowance at beginning of the period | 72 | 145 | 812 | |||||||
Credit loss (reversal) provision, net | 492 | (73) | (667) | |||||||
Credit loss allowance at the end of the period | 564 | 72 | 564 | 72 | 145 | |||||
Unfunded commitments | 65,546 | 65,546 | ||||||||
Activity in loan portfolio | ||||||||||
Credit loss provision, net | (492) | 73 | 667 | |||||||
Residential Portfolio Segment | 90 days or greater past due | Non-Credit Deterioration | ||||||||||
Activity in loan portfolio | ||||||||||
Carrying Value | 67,600 | 67,600 | ||||||||
Residential Portfolio Segment | Residential Loans | ||||||||||
Activity in loan portfolio | ||||||||||
Loan foreclosure, equity control and conversion to equity interest | (900) | |||||||||
Residential Portfolio Segment | First mortgage loan participation | New York | ||||||||||
Activity in loan portfolio | ||||||||||
Carrying Value | $ 29,000 | |||||||||
Residential Portfolio Segment | Total loans held-for-investment | ||||||||||
Activity in allowance for loan losses | ||||||||||
Credit loss (reversal) provision, net | 0 | 0 | 0 | |||||||
Activity in loan portfolio | ||||||||||
Balance at the beginning of the period | 0 | 59,225 | 90,684 | |||||||
Acquisitions/originations/additional funding | 0 | 0 | 0 | |||||||
Capitalized interest | 0 | 1,639 | 4,308 | |||||||
Basis of loans sold | 0 | 0 | 0 | |||||||
Loan maturities/principal repayments | 0 | (7,623) | (31,251) | |||||||
Discount accretion/premium amortization | 0 | 0 | 0 | |||||||
Changes in fair value | 0 | (3,169) | 1,186 | |||||||
Foreign currency translation gain (loss), net | 0 | 0 | 0 | |||||||
Credit loss provision, net | 0 | 0 | 0 | |||||||
Loan foreclosure, equity control and conversion to equity interest | 0 | 0 | 0 | |||||||
Transfer to/from other asset/liability classifications or between segments | 0 | (50,072) | (5,702) | |||||||
Balance at the end of the period | $ 0 | $ 0 | $ 0 | $ 0 | $ 59,225 |
Investment Securities - Investm
Investment Securities - Investment Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Securities, Available-for-sale [Line Items] | ||||
Available-for-sale securities | $ 102,368 | $ 113,386 | ||
Credit loss allowance | 13,143 | 3,182 | $ 8,610 | $ 5,675 |
HTM debt securities | 619,397 | 676,652 | ||
Total investment securities | 735,562 | 815,804 | ||
VIE eliminations | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Equity security | (1,578,859) | (1,666,921) | ||
CMBS | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Credit loss allowance | 164 | 172 | $ 3,140 | $ 0 |
HTM debt securities | 580,704 | 577,681 | ||
CMBS | Non- Controlling Interests | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Equity security | 177,300 | 198,900 | ||
Before consolidation of securitization VIEs | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
HTM debt securities | 606,254 | 673,470 | ||
Equity security, fair value | 8,340 | 9,840 | ||
Total investment securities | 2,314,421 | 2,482,725 | ||
Before consolidation of securitization VIEs | RMBS | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Available-for-sale securities | 102,368 | 113,386 | ||
Equity security | 449,909 | 423,183 | ||
Before consolidation of securitization VIEs | CMBS | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Equity security | $ 1,147,550 | $ 1,262,846 |
Investment Securities - Purchas
Investment Securities - Purchases, Sales and Redemptions, and Principal Collections for All Investment Securities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Debt Securities, Available-for-sale [Line Items] | |||
Purchases/fundings | $ 11,578 | $ 86,512 | $ 198,358 |
Sales and redemptions | 3,042 | 0 | 0 |
Principal collections | 90,348 | 115,947 | 87,450 |
HTM Securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Purchases/fundings | 11,578 | 86,512 | 198,358 |
Sales and redemptions | 0 | 0 | 0 |
Principal collections | 80,083 | 94,868 | 54,725 |
Equity Security | |||
Debt Securities, Available-for-sale [Line Items] | |||
Purchases/fundings | 0 | 0 | 0 |
Sales and redemptions | 2,493 | 0 | 0 |
Principal collections | 0 | 0 | 0 |
Securitization VIEs | |||
Debt Securities, Available-for-sale [Line Items] | |||
Purchases/fundings | (48,011) | (289,833) | (240,301) |
Sales and redemptions | 0 | 0 | (120,585) |
Principal collections | (169,642) | (93,412) | (68,873) |
RMBS | Available-for-sale | |||
Debt Securities, Available-for-sale [Line Items] | |||
Purchases/fundings | 0 | 0 | 0 |
Sales and redemptions | 549 | 0 | 0 |
Principal collections | 9,475 | 19,087 | 30,722 |
RMBS | Fair value option | |||
Debt Securities, Available-for-sale [Line Items] | |||
Purchases/fundings | 0 | 226,152 | 168,825 |
Sales and redemptions | 0 | 0 | 81,871 |
Principal collections | 53,332 | 74,542 | 63,144 |
CMBS | Fair value option | |||
Debt Securities, Available-for-sale [Line Items] | |||
Purchases/fundings | 48,011 | 63,681 | 71,476 |
Sales and redemptions | 0 | 0 | 38,714 |
Principal collections | $ 117,100 | $ 20,862 | $ 7,732 |
Investment Securities - Availab
Investment Securities - Available-for-Sale RMBS (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 87,016 | $ 92,431 |
Credit Loss Allowance | 0 | 0 |
Net Basis | 87,016 | 92,431 |
Gross Unrealized Gains | 18,092 | 21,765 |
Gross Unrealized Losses | (2,740) | (810) |
Net Fair Value Adjustment | 15,352 | 20,955 |
Fair Value | $ 102,368 | $ 113,386 |
SOFR | ||
Debt Securities, Available-for-sale [Line Items] | ||
Effective variable rate basis | 5.355% | |
RMBS | B- Rating | ||
Debt Securities, Available-for-sale [Line Items] | ||
Weighted Average Coupon | 5.80% | |
WAL (Years) | 7 years 1 month 6 days |
Investment Securities - Narrati
Investment Securities - Narrative (Details) | 12 Months Ended | 132 Months Ended | ||||
Dec. 31, 2023 USD ($) security shares | Dec. 31, 2022 USD ($) security | Dec. 31, 2021 USD ($) | Dec. 31, 2012 shares | Dec. 31, 2022 USD ($) security shares | Dec. 31, 2020 USD ($) | |
Debt Securities, Available-for-sale [Line Items] | ||||||
Cost of third party management | $ 500,000 | $ 600,000 | $ 900,000 | |||
Number of securities with unrealized losses | security | 14 | 10 | 10 | |||
Credit loss allowance | $ 13,143,000 | $ 3,182,000 | 8,610,000 | $ 3,182,000 | $ 5,675,000 | |
Amortized Cost Basis | $ 619,397,000 | 676,652,000 | $ 676,652,000 | |||
SEREF | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Number of shares acquired (in shares) | shares | 9,140,000 | |||||
Number of shares redeemed (in shares) | shares | 1,892,313 | 0 | ||||
Proceeds from shares redeemed | $ 2,500,000 | |||||
Remaining held (in shares) | shares | 7,247,687 | |||||
Equity security, fair value | $ 8,300,000 | 9,800,000 | $ 9,800,000 | |||
Ownership percentage | 2.30% | |||||
Fair value option | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Fair value of mortgage backed securities | $ 1,600,000,000 | |||||
VIE eliminations | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Fair value of investment securities before consolidation of VIEs eliminated against VIE liabilities | 18,600,000 | |||||
RMBS | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Portion of securities with variable rate | $ 91,300,000 | |||||
RMBS | Available-for-sale | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Portion of securities with variable rate (as a percent) | 89% | |||||
RMBS | Fair value option | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Portion of securities with variable rate | $ 0 | |||||
Fair value of investment securities before consolidation of VIEs | 449,900,000 | |||||
Unpaid principal balance of investment securities before consolidation of VIEs | 326,300,000 | |||||
CMBS | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Credit loss allowance | 164,000 | 172,000 | 3,140,000 | 172,000 | 0 | |
Amortized Cost Basis | 580,704,000 | 577,681,000 | 577,681,000 | |||
CMBS | Fair value option | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Portion of securities with variable rate | 0 | |||||
Fair value of investment securities before consolidation of VIEs | 1,100,000,000 | |||||
Unpaid principal balance of investment securities before consolidation of VIEs | 2,700,000,000 | |||||
Infrastructure bonds | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Credit loss allowance | 10,081,000 | 3,010,000 | $ 2,908,000 | 3,010,000 | $ 2,926,000 | |
Amortized Cost Basis | 29,123,000 | $ 69,214,000 | $ 69,214,000 | |||
Infrastructure bonds | Credit deteriorated | Infrastructure Portfolio Segment | Choctaw, Mississippi | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Credit loss allowance | 7,200,000 | |||||
Allowance for credit loss to date | 10,000,000 | |||||
Amortized Cost Basis | $ 19,200,000 |
Investment Securities - AFS and
Investment Securities - AFS and Fair Value Option (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Estimated Fair Value | ||
Securities with a loss less than 12 months | $ 10,687 | $ 6,961 |
Securities with a loss greater than 12 months | 6,361 | 1,889 |
Unrealized Losses | ||
Securities with a loss less than 12 months | (1,322) | (502) |
Securities with a loss greater than 12 months | $ (1,418) | $ (308) |
Investment Securities - HTM Deb
Investment Securities - HTM Debt Securities, Amortized Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
HTM Securities | |||
Amortized Cost Basis | $ 619,397 | $ 676,652 | |
Credit Loss Allowance | (13,143) | (3,182) | $ (8,610) |
Net Carrying Amount | 606,254 | 673,470 | |
Gross Unrealized Holding Gains | 75 | 202 | |
Gross Unrealized Holding Losses | (25,169) | (36,397) | |
Fair Value | 581,160 | 637,275 | |
Activity in credit loss allowance for HTM debt securities | |||
Credit loss allowance at beginning | 3,182 | 8,610 | 5,675 |
Credit loss provision (reversal), net | 9,961 | (5,428) | 2,935 |
Credit loss allowance at ending | 13,143 | 3,182 | 8,610 |
HTM preferred equity interests | |||
Less than one year | 96,548 | ||
One to three years | 444,175 | ||
Three to five years | 56,417 | ||
Thereafter | 9,114 | ||
Total | 606,254 | ||
CMBS | |||
HTM Securities | |||
Amortized Cost Basis | 580,704 | 577,681 | |
Credit Loss Allowance | (164) | (172) | (3,140) |
Net Carrying Amount | 580,540 | 577,509 | |
Gross Unrealized Holding Gains | 43 | 30 | |
Gross Unrealized Holding Losses | (24,835) | (30,424) | |
Fair Value | 555,748 | 547,115 | |
Activity in credit loss allowance for HTM debt securities | |||
Credit loss allowance at beginning | 172 | 3,140 | 0 |
Credit loss provision (reversal), net | (8) | (2,968) | 3,140 |
Credit loss allowance at ending | 164 | 172 | 3,140 |
HTM preferred equity interests | |||
Less than one year | 96,548 | ||
One to three years | 437,173 | ||
Three to five years | 46,819 | ||
Thereafter | 0 | ||
Total | 580,540 | ||
Preferred interests | |||
HTM Securities | |||
Amortized Cost Basis | 9,570 | 29,757 | |
Credit Loss Allowance | (2,898) | 0 | (2,562) |
Net Carrying Amount | 6,672 | 29,757 | |
Gross Unrealized Holding Gains | 0 | 125 | |
Gross Unrealized Holding Losses | (318) | (4,863) | |
Fair Value | 6,354 | 25,019 | |
Activity in credit loss allowance for HTM debt securities | |||
Credit loss allowance at beginning | 0 | 2,562 | 2,749 |
Credit loss provision (reversal), net | 2,898 | (2,562) | (187) |
Credit loss allowance at ending | 2,898 | 0 | 2,562 |
HTM preferred equity interests | |||
Less than one year | 0 | ||
One to three years | 6,672 | ||
Three to five years | 0 | ||
Thereafter | 0 | ||
Total | 6,672 | ||
Infrastructure bonds | |||
HTM Securities | |||
Amortized Cost Basis | 29,123 | 69,214 | |
Credit Loss Allowance | (10,081) | (3,010) | (2,908) |
Net Carrying Amount | 19,042 | 66,204 | |
Gross Unrealized Holding Gains | 32 | 47 | |
Gross Unrealized Holding Losses | (16) | (1,110) | |
Fair Value | 19,058 | 65,141 | |
Activity in credit loss allowance for HTM debt securities | |||
Credit loss allowance at beginning | 3,010 | 2,908 | 2,926 |
Credit loss provision (reversal), net | 7,071 | 102 | (18) |
Credit loss allowance at ending | 10,081 | $ 3,010 | $ 2,908 |
HTM preferred equity interests | |||
Less than one year | 0 | ||
One to three years | 330 | ||
Three to five years | 9,598 | ||
Thereafter | 9,114 | ||
Total | $ 19,042 |
Properties - Narrative (Details
Properties - Narrative (Details) ft² in Millions | 1 Months Ended | 12 Months Ended | |||
Sep. 30, 2017 ft² property | Dec. 31, 2023 USD ($) property residential_unit | Dec. 31, 2022 USD ($) property | Dec. 31, 2021 USD ($) property | Dec. 31, 2016 ft² building | |
Real Estate Properties [Line Items] | |||||
Property impairment loss | $ 124,900,000 | ||||
Operating Properties | Investing and Servicing Segment | |||||
Real Estate Properties [Line Items] | |||||
Number of properties sold | property | 4 | 3 | 2 | ||
Proceeds from sale of operating properties | $ 63,700,000 | $ 92,100,000 | $ 68,700,000 | ||
Gain on sale of property | 25,600,000 | 50,900,000 | 22,200,000 | ||
Deconsolidation of subsidiary | 10,200,000 | ||||
Gain on sale of property attributable to noncontrolling interest | 600,000 | ||||
Residential Units | Commercial and Residential Lending Segment | |||||
Real Estate Properties [Line Items] | |||||
Proceeds from sale of operating properties | 12,100,000 | ||||
Gain on sale of property | $ 0 | ||||
Number of residential units sold | residential_unit | 4 | ||||
California | |||||
Real Estate Properties [Line Items] | |||||
Property impairment loss | $ 94,800,000 | ||||
Texas | |||||
Real Estate Properties [Line Items] | |||||
Property impairment loss | 30,100,000 | ||||
Montgomery Alabama | Operating Properties | Commercial and Residential Lending Segment | |||||
Real Estate Properties [Line Items] | |||||
Proceeds from sale of operating properties | 114,800,000 | 31,200,000 | |||
Gain on sale of property | 86,600,000 | 17,700,000 | |||
Medical Office Portfolio | |||||
Real Estate Properties [Line Items] | |||||
Number of acquired properties closed | building | 34 | ||||
Area of property | ft² | 1.9 | ||||
Total gross properties and lease intangibles | 778,200,000 | ||||
Debt | 598,400,000 | ||||
Master Lease Portfolio | |||||
Real Estate Properties [Line Items] | |||||
Total gross properties and lease intangibles | 343,800,000 | ||||
Debt | 193,700,000 | ||||
Number of retail properties acquired | property | 16 | ||||
Number of square feet of properties | ft² | 1.9 | ||||
Term of master lease agreements | 24 years 7 months 6 days | ||||
Depreciation | 290,900,000 | ||||
Non-controlling interest income | 11,700,000 | $ 9,700,000 | $ 9,000,000 | ||
Master Lease Portfolio | Minimum | Retail Properties | Geographic Concentration Risk | Utah, Florida, Texas and Minnesota | |||||
Real Estate Properties [Line Items] | |||||
Concentration risk (as a percent) | 50% | ||||
REIS Equity Portfolio | |||||
Real Estate Properties [Line Items] | |||||
Total gross properties and lease intangibles | 109,500,000 | ||||
Debt | $ 68,800,000 | ||||
Number of retail properties acquired | property | 6 | ||||
REIS Equity Portfolio | Operating Properties | |||||
Real Estate Properties [Line Items] | |||||
Number of properties sold | property | 4 | 3 | 2 | ||
Proceeds from sale of operating properties | $ 63,700,000 | $ 92,100,000 | $ 68,700,000 | ||
Gain on sale of property | 25,600,000 | $ 50,900,000 | $ 22,200,000 | ||
Commercial And Residential Lending Segment Property Portfolio | |||||
Real Estate Properties [Line Items] | |||||
Total gross properties and lease intangibles | 456,500,000 | ||||
Debt | $ 234,900,000 |
Properties - Properties Held-fo
Properties - Properties Held-for-Investment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Real Estate Properties [Line Items] | ||
Properties, cost | $ 1,226,710 | $ 1,659,495 |
Less: accumulated depreciation | (180,326) | (209,509) |
Properties, net | 1,046,384 | 1,449,986 |
Property Segment | ||
Real Estate Properties [Line Items] | ||
Land and land improvements | 68,923 | 176,029 |
Buildings and building improvements | 629,511 | 856,411 |
Furniture & fixtures | $ 608 | 446 |
Property Segment | Minimum | ||
Real Estate Properties [Line Items] | ||
Land and land improvements, Depreciable Life | 0 years | |
Building and building improvements, Depreciable Life | 0 years | |
Furniture & fixtures, Depreciable Life | 3 years | |
Property Segment | Maximum | ||
Real Estate Properties [Line Items] | ||
Land and land improvements, Depreciable Life | 15 years | |
Building and building improvements, Depreciable Life | 45 years | |
Furniture & fixtures, Depreciable Life | 5 years | |
Investing and Servicing Segment | ||
Real Estate Properties [Line Items] | ||
Land and land improvements | $ 20,229 | 34,613 |
Buildings and building improvements | 65,433 | 122,384 |
Furniture & fixtures | $ 2,899 | 3,207 |
Investing and Servicing Segment | Minimum | ||
Real Estate Properties [Line Items] | ||
Land and land improvements, Depreciable Life | 0 years | |
Building and building improvements, Depreciable Life | 3 years | |
Furniture & fixtures, Depreciable Life | 2 years | |
Investing and Servicing Segment | Maximum | ||
Real Estate Properties [Line Items] | ||
Land and land improvements, Depreciable Life | 15 years | |
Building and building improvements, Depreciable Life | 40 years | |
Furniture & fixtures, Depreciable Life | 5 years | |
Commercial and Residential Lending Segment | ||
Real Estate Properties [Line Items] | ||
Land and land improvements | $ 79,361 | 99,043 |
Buildings and building improvements | $ 139,538 | 79,661 |
Furniture & fixtures, Depreciable Life | 5 years | |
Furniture & fixtures | $ 2,003 | 0 |
Construction in progress | $ 218,205 | $ 287,701 |
Commercial and Residential Lending Segment | Minimum | ||
Real Estate Properties [Line Items] | ||
Building and building improvements, Depreciable Life | 0 years | |
Commercial and Residential Lending Segment | Maximum | ||
Real Estate Properties [Line Items] | ||
Building and building improvements, Depreciable Life | 50 years |
Properties - Operating Leases (
Properties - Operating Leases (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Lessor, Operating Lease, Payments, Fiscal Year Maturity [Abstract] | |
2024 | $ 62,333 |
2025 | 56,655 |
2026 | 47,778 |
2027 | 42,123 |
2028 | 38,104 |
Thereafter | 127,957 |
Total | $ 374,950 |
Investments of Consolidated A_3
Investments of Consolidated Affordable Housing Fund - Narrative (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
Dec. 31, 2017 affordable_housing_community | Dec. 31, 2023 USD ($) affordable_housing_community affordable_housing_unit | Dec. 31, 2018 affordable_housing_community | Dec. 31, 2016 affordable_housing_community | Dec. 31, 2015 affordable_housing_community | Dec. 31, 2022 USD ($) | |
Investments in and Advances to Affiliates [Line Items] | ||||||
Investments of consolidated affordable housing fund, at fair value | $ 1,761,002 | |||||
Primary beneficiary | ||||||
Investments in and Advances to Affiliates [Line Items] | ||||||
Investments of consolidated affordable housing fund, at fair value | $ 2,012,833 | $ 1,761,002 | ||||
Primary beneficiary | Woodstar I Portfolio | ||||||
Investments in and Advances to Affiliates [Line Items] | ||||||
Number of affordable housing communities in portfolio | affordable_housing_community | 32 | |||||
Number of affordable housing units in portfolio | affordable_housing_unit | 8,948 | |||||
Number of affordable housing communities acquired in portfolio | affordable_housing_community | 14 | 18 | ||||
Investments of consolidated affordable housing fund, at fair value | $ 1,800,000 | |||||
Debt fair value | $ 731,200 | |||||
Primary beneficiary | Woodstar II Portfolio | ||||||
Investments in and Advances to Affiliates [Line Items] | ||||||
Number of affordable housing communities in portfolio | affordable_housing_community | 27 | |||||
Number of affordable housing units in portfolio | affordable_housing_unit | 6,109 | |||||
Number of affordable housing communities acquired in portfolio | affordable_housing_community | 8 | 19 | ||||
Investments of consolidated affordable housing fund, at fair value | $ 1,400,000 | |||||
Debt fair value | $ 479,900 |
Investments of Consolidated A_4
Investments of Consolidated Affordable Housing Fund - Investment Income (Details) - USD ($) $ in Thousands | 2 Months Ended | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Investments in and Advances to Affiliates [Line Items] | ||||
Unrealized change in fair value of investments | $ 402 | $ 251,831 | $ 720,693 | |
Income from affordable housing fund investments | 755,736 | |||
Primary beneficiary | ||||
Investments in and Advances to Affiliates [Line Items] | ||||
Distributions from affordable housing fund investments | 6,023 | 39,413 | 35,043 | |
Income from affordable housing fund investments | $ 6,425 | $ 291,244 | $ 755,736 | $ 6,425 |
Investment in Unconsolidated _3
Investment in Unconsolidated Entities (Details) | 1 Months Ended | 12 Months Ended | |
Mar. 31, 2021 USD ($) retail_center entity | Dec. 31, 2023 USD ($) investment power_plant | Dec. 31, 2022 USD ($) power_plant | |
Equity method investments: | |||
Equity method, Carrying value | $ 74,659,000 | $ 68,901,000 | |
Other equity investments: | |||
Other equity investments, carrying value | 15,717,000 | 22,991,000 | |
Investment in unconsolidated entities | $ 90,376,000 | $ 91,892,000 | |
Number of publicly traded investments | investment | 0 | ||
Carrying value over (under) equity in net assets | $ 0 | ||
Equity interests in two natural gas power plants | |||
Equity method investments: | |||
Number of natural gas power plants | power_plant | 2 | 2 | |
Equity method, Carrying value | $ 52,230,000 | $ 46,618,000 | |
Investor entity which owns equity in an online real estate company | |||
Equity method investments: | |||
Equity method, Participation / Ownership % | 50% | ||
Equity method, Carrying value | $ 5,575,000 | 5,457,000 | |
Equity interest in a residential mortgage originator | |||
Equity method investments: | |||
Equity method, Carrying value | 0 | 1,449,000 | |
Various | |||
Equity method investments: | |||
Equity method, Carrying value | $ 16,854,000 | 15,377,000 | |
Other equity investments: | |||
Investment in unconsolidated entities | $ 7,300,000 | ||
Number of investor entities | entity | 2 | ||
Number of shopping malls | retail_center | 2 | ||
Equity interest in a servicing and advisory business | |||
Other equity investments: | |||
Cost method, Participation / Ownership % | 2% | ||
Other equity investments, carrying value | $ 12,955,000 | 12,955,000 | |
Investment funds which own equity in a loan servicer and other real estate assets | |||
Other equity investments: | |||
Other equity investments, carrying value | $ 842,000 | 940,000 | |
Investor entities which own equity interests in two entertainment and retail centers | |||
Other equity investments: | |||
Cost method, Participation / Ownership % | 15% | ||
Other equity investments, carrying value | $ 146,000 | 7,322,000 | |
Received a capital distribution | 54,900,000 | ||
Decrease in carrying value | 47,700,000 | ||
Reduction in equity interests | 7,200,000 | ||
Various | |||
Other equity investments: | |||
Other equity investments, carrying value | $ 1,774,000 | $ 1,774,000 | |
Minimum | |||
Other equity investments: | |||
Cost method, Participation / Ownership % | 4% | ||
Minimum | Equity interests in two natural gas power plants | |||
Equity method investments: | |||
Equity method, Participation / Ownership % | 10% | ||
Minimum | Various | |||
Equity method investments: | |||
Equity method, Participation / Ownership % | 20% | ||
Minimum | Various | |||
Other equity investments: | |||
Cost method, Participation / Ownership % | 1% | ||
Maximum | |||
Other equity investments: | |||
Cost method, Participation / Ownership % | 6% | ||
Maximum | Equity interests in two natural gas power plants | |||
Equity method investments: | |||
Equity method, Participation / Ownership % | 12% | ||
Maximum | Various | |||
Equity method investments: | |||
Equity method, Participation / Ownership % | 50% | ||
Maximum | Various | |||
Other equity investments: | |||
Cost method, Participation / Ownership % | 3% |
Goodwill and Intangibles - Narr
Goodwill and Intangibles - Narrative (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Apr. 19, 2013 |
Goodwill [Line Items] | |||
Goodwill | $ 259,846 | $ 259,846 | |
Domestic servicing rights, at fair value | Before consolidation of securitization VIEs | |||
Goodwill [Line Items] | |||
Servicing rights intangibles | 57,200 | 56,800 | |
VIE eliminations | Domestic servicing rights, at fair value | |||
Goodwill [Line Items] | |||
Servicing rights intangibles | 37,900 | 39,100 | |
Infrastructure Lending Segment | |||
Goodwill [Line Items] | |||
Goodwill | $ 119,400 | 119,400 | |
Useful life | 15 years | ||
Investing and Servicing Segment | |||
Goodwill [Line Items] | |||
Goodwill | $ 140,400 | $ 140,400 | |
Useful life | 15 years | ||
Tax deductible component | $ 149,900 |
Goodwill and Intangibles - Inta
Goodwill and Intangibles - Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Goodwill [Line Items] | |||
Gross Carrying Value | $ 143,470 | $ 143,061 | |
Accumulated Amortization | (78,503) | (74,288) | |
Net Carrying Value | 64,967 | 68,773 | $ 63,564 |
In-place Lease Intangible Assets | |||
Goodwill [Line Items] | |||
Gross Carrying Value | 96,158 | 98,622 | |
Accumulated Amortization | (67,420) | (64,246) | |
Net Carrying Value | 28,738 | 34,376 | 31,991 |
Favorable Lease Intangible Assets | |||
Goodwill [Line Items] | |||
Gross Carrying Value | 27,928 | 26,649 | |
Accumulated Amortization | (11,083) | (10,042) | |
Net Carrying Value | 16,845 | 16,607 | 14,793 |
Domestic servicing rights, at fair value | |||
Goodwill [Line Items] | |||
Gross Carrying Value | 19,384 | 17,790 | |
Net Carrying Value | $ 19,384 | $ 17,790 | $ 16,780 |
Goodwill and Intangibles - Acti
Goodwill and Intangibles - Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Intangible Assets, Net (Excluding Goodwill) [Roll Forward] | ||
Beginning balance | $ 68,773 | $ 63,564 |
Acquisition | 4,341 | 13,603 |
Amortization | (8,734) | (8,796) |
Impairment | (47) | |
Sales | (1,007) | (561) |
Changes in fair value due to changes in inputs and assumptions | 1,594 | 1,010 |
Ending balance | 64,967 | 68,773 |
In-place Lease Intangible Assets | ||
Intangible Assets, Net (Excluding Goodwill) [Roll Forward] | ||
Beginning balance | 34,376 | 31,991 |
Acquisition | 2,061 | 10,083 |
Amortization | (6,789) | (7,132) |
Impairment | (43) | |
Sales | (910) | (523) |
Changes in fair value due to changes in inputs and assumptions | 0 | 0 |
Ending balance | 28,738 | 34,376 |
Favorable Lease Intangible Assets | ||
Intangible Assets, Net (Excluding Goodwill) [Roll Forward] | ||
Beginning balance | 16,607 | 14,793 |
Acquisition | 2,280 | 3,520 |
Amortization | (1,945) | (1,664) |
Impairment | (4) | |
Sales | (97) | (38) |
Changes in fair value due to changes in inputs and assumptions | 0 | 0 |
Ending balance | 16,845 | 16,607 |
Domestic servicing rights, at fair value | ||
Intangible Assets, Net (Excluding Goodwill) [Roll Forward] | ||
Beginning balance | 17,790 | 16,780 |
Acquisition | 0 | 0 |
Amortization | 0 | 0 |
Impairment | 0 | |
Sales | 0 | 0 |
Changes in fair value due to changes in inputs and assumptions | 1,594 | 1,010 |
Ending balance | $ 19,384 | $ 17,790 |
Goodwill and Intangibles - Futu
Goodwill and Intangibles - Future Expected Amortization (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2024 | $ 7,195 |
2025 | 6,099 |
2026 | 4,573 |
2027 | 4,089 |
2028 | 3,943 |
Thereafter | 19,684 |
Total | $ 45,583 |
Secured Borrowings - Secured Fi
Secured Borrowings - Secured Financing Agreements (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Secured Borrowings | ||
Pledged Asset Carrying Value | $ 102,368 | $ 113,386 |
Secured financing agreements, net | 13,867,996 | 14,501,532 |
Revolving credit facility | ||
Secured Borrowings | ||
Maximum borrowing capacity | 150,000 | |
Equity interests in certain subsidiaries used to secure facilities | 5,900,000 | |
Borrowing Base Facility | ||
Secured Borrowings | ||
Maximum Facility Size | 450,000 | |
Maximum facility size subject to certain conditions | 750,000 | |
Commercial Financing Facilities | ||
Secured Borrowings | ||
Maximum Facility Size | 472,600 | |
Term Loan Facility Maturing July 2026 | ||
Secured Borrowings | ||
Maximum borrowing capacity | 772,800 | |
Term Loan Facility Maturing November 2027 | ||
Secured Borrowings | ||
Maximum borrowing capacity | $ 594,000 | |
Basis spread floor | 0.50% | |
SOFR | Revolving credit facility | ||
Secured Borrowings | ||
Coupon Rate | 2.60% | |
SOFR | Term Loan Facility Maturing July 2026 | ||
Secured Borrowings | ||
Basis spread floor | 0.75% | |
SOFR | Term Loan Facility Maturing November 2027 | ||
Secured Borrowings | ||
Pricing margin (as a percent) | 3.25% | |
SOFR + 2.50% | Term Loan Facility Maturing July 2026 | ||
Secured Borrowings | ||
Pricing margin (as a percent) | 2.60% | |
Maximum borrowing capacity | $ 383,000 | |
SOFR + 3.25% | Term Loan Facility Maturing July 2026 | ||
Secured Borrowings | ||
Pricing margin (as a percent) | 3.35% | |
Maximum borrowing capacity | $ 389,800 | |
Secured Borrowings | ||
Secured Borrowings | ||
Maximum Facility Size | 22,855,023 | |
Long term debt, gross | 13,948,828 | 14,610,127 |
Unamortized net discount | (24,975) | (30,320) |
Unamortized deferred financing costs | (55,857) | (78,275) |
Secured financing agreements, net | 13,867,996 | 14,501,532 |
Secured Borrowings | Borrowing Base Facility | ||
Secured Borrowings | ||
Maximum Facility Size | 750,000 | |
Long term debt, gross | 27,639 | 0 |
Secured Borrowings | Commercial Financing Facilities | ||
Secured Borrowings | ||
Maximum Facility Size | 572,552 | |
Long term debt, gross | 387,822 | 311,825 |
Secured Borrowings | Residential Financing Facility | ||
Secured Borrowings | ||
Maximum Facility Size | 0 | |
Long term debt, gross | 0 | 244,418 |
Secured Borrowings | Infrastructure Financing Facilities | ||
Secured Borrowings | ||
Maximum Facility Size | 1,550,000 | |
Long term debt, gross | $ 631,187 | 765,265 |
Secured Borrowings | Property Mortgages - Fixed rate | ||
Secured Borrowings | ||
Coupon Rate | 4.52% | |
Maximum Facility Size | $ 29,898 | |
Long term debt, gross | 29,898 | 261,100 |
Secured Borrowings | Property Mortgages - Variable rate | ||
Secured Borrowings | ||
Maximum Facility Size | 855,080 | |
Long term debt, gross | 853,145 | 847,633 |
Secured Borrowings | Term Loans and Revolver | ||
Secured Borrowings | ||
Maximum Facility Size | 1,516,778 | |
Long term debt, gross | 1,366,778 | 1,380,766 |
Secured Borrowings | Total Other Secured Financing | ||
Secured Borrowings | ||
Maximum Facility Size | 5,274,308 | |
Long term debt, gross | $ 3,296,469 | 3,811,007 |
Secured Borrowings | First Mortgage and Mezzanine | ||
Secured Borrowings | ||
Coupon Rate | 3.46% | |
Long term debt, gross | $ 600,000 | |
Secured Borrowings | Asset Pledged as Collateral | ||
Secured Borrowings | ||
Pledged Asset Carrying Value | 17,711,587 | |
Secured Borrowings | Asset Pledged as Collateral | Borrowing Base Facility | ||
Secured Borrowings | ||
Pledged Asset Carrying Value | 479,925 | |
Secured Borrowings | Asset Pledged as Collateral | Commercial Financing Facilities | ||
Secured Borrowings | ||
Pledged Asset Carrying Value | 557,888 | |
Secured Borrowings | Asset Pledged as Collateral | Residential Financing Facility | ||
Secured Borrowings | ||
Pledged Asset Carrying Value | 0 | |
Secured Borrowings | Asset Pledged as Collateral | Infrastructure Financing Facilities | ||
Secured Borrowings | ||
Pledged Asset Carrying Value | 877,591 | |
Secured Borrowings | Asset Pledged as Collateral | Property Mortgages - Fixed rate | ||
Secured Borrowings | ||
Pledged Asset Carrying Value | 32,772 | |
Secured Borrowings | Asset Pledged as Collateral | Property Mortgages - Variable rate | ||
Secured Borrowings | ||
Pledged Asset Carrying Value | 895,159 | |
Secured Borrowings | Asset Pledged as Collateral | Total Other Secured Financing | ||
Secured Borrowings | ||
Pledged Asset Carrying Value | $ 2,843,335 | |
Secured Borrowings | Index | Commercial Financing Facilities | ||
Secured Borrowings | ||
Pricing margin (as a percent) | 2.20% | |
Secured Borrowings | Index | Infrastructure Financing Facilities | ||
Secured Borrowings | ||
Pricing margin (as a percent) | 2.14% | |
Secured Borrowings | SOFR | Borrowing Base Facility | ||
Secured Borrowings | ||
Pricing margin (as a percent) | 2.11% | |
Secured Borrowings | SOFR | First Mortgage and Mezzanine | Weighted-average | ||
Secured Borrowings | ||
Pricing margin (as a percent) | 2.18% | |
Line of Credit | Commercial Financing Facilities | ||
Secured Borrowings | ||
Line of credit capacity if conditions are met | $ 572,600 | |
Commercial Loans | ||
Secured Borrowings | ||
Maximum Facility Size | 11,700,000 | |
Secured financing agreements, net | 2,800,000 | |
Line of credit capacity if conditions are met | $ 12,100,000 | |
Commercial Loans | SOFR | Weighted-average | ||
Secured Borrowings | ||
Pricing margin (as a percent) | 3.38% | |
Commercial Loans | Secured Borrowings | ||
Secured Borrowings | ||
Maximum Facility Size | $ 12,109,808 | |
Long term debt, gross | 7,170,389 | 7,746,867 |
Commercial Loans | Secured Borrowings | Asset Pledged as Collateral | ||
Secured Borrowings | ||
Pledged Asset Carrying Value | $ 10,267,245 | |
Commercial Loans | Secured Borrowings | Index | ||
Secured Borrowings | ||
Pricing margin (as a percent) | 2.07% | |
Residential Loans | Secured Borrowings | ||
Secured Borrowings | ||
Maximum Facility Size | $ 3,450,000 | |
Long term debt, gross | 2,287,655 | 1,912,774 |
Residential Loans | Secured Borrowings | Asset Pledged as Collateral | ||
Secured Borrowings | ||
Pledged Asset Carrying Value | $ 2,602,728 | |
Residential Loans | Secured Borrowings | SOFR | ||
Secured Borrowings | ||
Pricing margin (as a percent) | 1.90% | |
Infrastructure Loans | Secured Borrowings | ||
Secured Borrowings | ||
Maximum Facility Size | $ 650,000 | |
Long term debt, gross | 453,217 | 290,431 |
Infrastructure Loans | Secured Borrowings | Asset Pledged as Collateral | ||
Secured Borrowings | ||
Pledged Asset Carrying Value | $ 541,979 | |
Infrastructure Loans | Secured Borrowings | SOFR | ||
Secured Borrowings | ||
Pricing margin (as a percent) | 2.07% | |
Conduit Loans | Secured Borrowings | ||
Secured Borrowings | ||
Maximum Facility Size | $ 375,000 | |
Long term debt, gross | 26,930 | 8,423 |
Conduit Loans | Secured Borrowings | Asset Pledged as Collateral | ||
Secured Borrowings | ||
Pledged Asset Carrying Value | $ 31,690 | |
Conduit Loans | Secured Borrowings | SOFR | ||
Secured Borrowings | ||
Pricing margin (as a percent) | 2.30% | |
CMBS/RMBS | ||
Secured Borrowings | ||
Coupon Rate | 3.54% | |
Secured financing agreements, net | $ 281,300 | |
Amount outstanding on a repurchase facility not subject to margin calls | 281,300 | |
Amount outstanding on repurchase facility | $ 33,000 | |
Pro rata share owned by a non-controlling partner in a consolidated joint venture | 49% | |
CMBS/RMBS | Certain Facilities | ||
Secured Borrowings | ||
Secured financing agreements, net | $ 332,600 | |
Rolling maturity period | 11 months | |
Maturity period | 12 months | |
CMBS/RMBS | SOFR | Weighted-average | ||
Secured Borrowings | ||
Coupon Rate | 2.22% | |
CMBS/RMBS | Secured Borrowings | ||
Secured Borrowings | ||
Maximum Facility Size | $ 995,907 | |
Long term debt, gross | 714,168 | 840,625 |
CMBS/RMBS | Secured Borrowings | Asset Pledged as Collateral | ||
Secured Borrowings | ||
Pledged Asset Carrying Value | 1,424,610 | |
Total Repurchase Agreements | Secured Borrowings | ||
Secured Borrowings | ||
Maximum Facility Size | 17,580,715 | |
Long term debt, gross | 10,652,359 | $ 10,799,120 |
Total Repurchase Agreements | Secured Borrowings | Asset Pledged as Collateral | ||
Secured Borrowings | ||
Pledged Asset Carrying Value | $ 14,868,252 |
Secured Borrowings - Narrative
Secured Borrowings - Narrative (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | |||||||
Feb. 28, 2022 USD ($) | Jan. 31, 2022 USD ($) | Jul. 31, 2021 USD ($) hotel | Apr. 30, 2021 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | May 31, 2021 USD ($) | Aug. 31, 2019 USD ($) | |
Secured Borrowings | |||||||||
Principal amount of notes purchased by third-party investors | $ 210,100 | ||||||||
RMBS | |||||||||
Secured Borrowings | |||||||||
Securitizations of loans | $ 230,000 | ||||||||
Number of hotels | hotel | 41 | ||||||||
Morgan Stanley Bank, N.A. | |||||||||
Secured Borrowings | |||||||||
Amount at risk | $ 858,400 | ||||||||
Weighted average extended maturities | 3 years 8 months 12 days | ||||||||
Repurchase Agreements | |||||||||
Secured Borrowings | |||||||||
Percentage of repurchase agreements for which margin calls are limited to collateral specific credit marks | 67% | ||||||||
Percentage of repurchase agreements containing margin call provisions for general capital market activity | 33% | ||||||||
Percentage of repurchase agreements containing margin call provisions that pertain to loans held-for-sale | 6% | ||||||||
Secured Borrowings | |||||||||
Secured Borrowings | |||||||||
Amortization of deferred financing costs | $ 40,700 | $ 38,200 | $ 35,600 | ||||||
Long term debt, gross | 13,948,828 | 14,610,127 | |||||||
Residential Loans Credit Facility | |||||||||
Secured Borrowings | |||||||||
Maximum borrowing capacity | 1,800,000 | ||||||||
Residential Loans Credit Facility | Line of Credit | |||||||||
Secured Borrowings | |||||||||
Decrease (increase) in borrowing capacity, existing facilities | $ (87,900) | ||||||||
Decrease in weighted average spread | 0.39% | ||||||||
Commercial Loans Repurchase Facility | |||||||||
Secured Borrowings | |||||||||
Maximum borrowing capacity | $ 63,400 | ||||||||
Commercial Loans Repurchase Facility | Line of Credit | |||||||||
Secured Borrowings | |||||||||
Decrease (increase) in borrowing capacity, existing facilities | 206,000 | ||||||||
STWD 2022-FL3 | |||||||||
Secured Borrowings | |||||||||
Face Amount | $ 1,000,000 | ||||||||
Principal amount of notes purchased by third-party investors | 842,500 | ||||||||
Long term debt, gross | 82,500 | ||||||||
Liquidation preference | $ 75,000 | ||||||||
CLO contribution period | 2 years | ||||||||
Additional contribution to CLO | 52,200 | 80,000 | |||||||
STWD 2021-FL2 | |||||||||
Secured Borrowings | |||||||||
Face Amount | $ 1,300,000 | ||||||||
Principal amount of notes purchased by third-party investors | 1,100,000 | ||||||||
Long term debt, gross | 70,100 | ||||||||
Liquidation preference | $ 127,500 | ||||||||
Additional contribution to CLO | 99,100 | 257,200 | 58,600 | ||||||
Repayments of debt | 1,200 | ||||||||
STWD 2019-FL1 | |||||||||
Secured Borrowings | |||||||||
Face Amount | $ 1,100,000 | ||||||||
Principal amount of notes purchased by third-party investors | 936,400 | ||||||||
Long term debt, gross | 86,600 | ||||||||
Liquidation preference | $ 77,000 | ||||||||
Additional contribution to CLO | 261,900 | ||||||||
Repayments of debt | 168,600 | 197,200 | |||||||
STWD 2021-SIF2 | |||||||||
Secured Borrowings | |||||||||
Face Amount | $ 500,000 | ||||||||
Principal amount of notes purchased by third-party investors | 410,000 | ||||||||
Liquidation preference | $ 90,000 | ||||||||
CLO contribution period | 3 years | ||||||||
Additional contribution to CLO | 205,700 | 112,900 | |||||||
STWD 2021-SIF1 | |||||||||
Secured Borrowings | |||||||||
Face Amount | $ 500,000 | ||||||||
Principal amount of notes purchased by third-party investors | 410,000 | ||||||||
Liquidation preference | $ 90,000 | ||||||||
CLO contribution period | 3 years | ||||||||
Additional contribution to CLO | 213,800 | 93,800 | 45,900 | ||||||
CLOs and SASB | |||||||||
Secured Borrowings | |||||||||
Amortization of deferred financing costs | 8,700 | 10,500 | $ 5,700 | ||||||
Incurred debt issuance costs | 37,900 | ||||||||
Deferred financing costs, net of amortization | $ 9,500 | $ 18,200 |
Secured Borrowings - Collateral
Secured Borrowings - Collateralized Loan Obligations (Details) $ in Thousands | 12 Months Ended | ||||||
Dec. 31, 2023 USD ($) Item | Dec. 31, 2022 USD ($) Item | Feb. 28, 2022 USD ($) | Jan. 31, 2022 USD ($) | May 31, 2021 USD ($) | Apr. 30, 2021 USD ($) | Aug. 31, 2019 USD ($) | |
Summary of CLO | |||||||
Carrying Value | $ 3,491,292 | $ 3,676,224 | |||||
Collateral assets | |||||||
Summary of CLO | |||||||
Face Amount | 4,226,614 | 4,401,641 | |||||
Carrying Value | 4,288,770 | 4,454,087 | |||||
Financing | |||||||
Summary of CLO | |||||||
Face Amount | 3,500,163 | 3,689,140 | |||||
Carrying Value | $ 3,491,292 | $ 3,676,224 | |||||
STWD 2022-FL3 | |||||||
Summary of CLO | |||||||
Face Amount | $ 1,000,000 | ||||||
STWD 2022-FL3 | Collateral assets | |||||||
Summary of CLO | |||||||
Count | Item | 48 | 51 | |||||
Face Amount | $ 997,569 | $ 1,000,000 | |||||
Carrying Value | $ 1,007,532 | $ 1,010,051 | |||||
STWD 2022-FL3 | Financing | |||||||
Summary of CLO | |||||||
Count | Item | 1 | 1 | |||||
Face Amount | $ 840,620 | $ 842,500 | |||||
Carrying Value | $ 837,881 | $ 842,374 | |||||
STWD 2022-FL3 | SOFR | Collateral assets | |||||||
Summary of CLO | |||||||
Weighted Average Spread | 3.53% | ||||||
STWD 2022-FL3 | SOFR | Financing | |||||||
Summary of CLO | |||||||
Weighted Average Spread | 1.89% | 1.93% | |||||
STWD 2022-FL3 | Index | Collateral assets | |||||||
Summary of CLO | |||||||
Weighted Average Spread | 3.52% | ||||||
STWD 2021-HTS | Collateral assets | |||||||
Summary of CLO | |||||||
Count | Item | 1 | 1 | |||||
Face Amount | $ 223,193 | $ 230,000 | |||||
Carrying Value | $ 224,509 | $ 231,186 | |||||
STWD 2021-HTS | Financing | |||||||
Summary of CLO | |||||||
Count | Item | 1 | 1 | |||||
Face Amount | $ 203,284 | $ 210,091 | |||||
Carrying Value | $ 203,058 | $ 208,961 | |||||
STWD 2021-HTS | SOFR | Collateral assets | |||||||
Summary of CLO | |||||||
Weighted Average Spread | 3.87% | ||||||
STWD 2021-HTS | SOFR | Financing | |||||||
Summary of CLO | |||||||
Weighted Average Spread | 2.82% | ||||||
STWD 2021-HTS | LIBOR | Collateral assets | |||||||
Summary of CLO | |||||||
Weighted Average Spread | 3.85% | ||||||
STWD 2021-HTS | LIBOR | Financing | |||||||
Summary of CLO | |||||||
Weighted Average Spread | 2.71% | ||||||
STWD 2021-FL2 | |||||||
Summary of CLO | |||||||
Face Amount | $ 1,300,000 | ||||||
Percent of outstanding loan | 7% | ||||||
Debt, weighted average interest rate | 7.39% | ||||||
STWD 2021-FL2 | Collateral assets | |||||||
Summary of CLO | |||||||
Count | Item | 34 | 36 | |||||
Face Amount | $ 1,272,585 | $ 1,277,474 | |||||
Carrying Value | $ 1,288,165 | $ 1,284,240 | |||||
STWD 2021-FL2 | Financing | |||||||
Summary of CLO | |||||||
Count | Item | 1 | 1 | |||||
Face Amount | $ 1,065,713 | $ 1,077,375 | |||||
Carrying Value | $ 1,063,454 | $ 1,072,403 | |||||
STWD 2021-FL2 | SOFR | Collateral assets | |||||||
Summary of CLO | |||||||
Weighted Average Spread | 3.95% | ||||||
STWD 2021-FL2 | SOFR | Financing | |||||||
Summary of CLO | |||||||
Weighted Average Spread | 1.85% | ||||||
STWD 2021-FL2 | Index | Collateral assets | |||||||
Summary of CLO | |||||||
Weighted Average Spread | 4.04% | ||||||
STWD 2021-FL2 | LIBOR | Financing | |||||||
Summary of CLO | |||||||
Weighted Average Spread | 1.80% | ||||||
STWD 2019-FL1 | |||||||
Summary of CLO | |||||||
Face Amount | $ 1,100,000 | ||||||
STWD 2019-FL1 | Collateral assets | |||||||
Summary of CLO | |||||||
Count | Item | 14 | 16 | |||||
Face Amount | $ 734,099 | $ 902,799 | |||||
Carrying Value | $ 739,684 | $ 906,409 | |||||
STWD 2019-FL1 | Financing | |||||||
Summary of CLO | |||||||
Count | Item | 1 | 1 | |||||
Face Amount | $ 570,546 | $ 739,174 | |||||
Carrying Value | $ 570,546 | $ 738,473 | |||||
STWD 2019-FL1 | SOFR | Collateral assets | |||||||
Summary of CLO | |||||||
Weighted Average Spread | 3.51% | ||||||
STWD 2019-FL1 | SOFR | Financing | |||||||
Summary of CLO | |||||||
Weighted Average Spread | 1.62% | 1.64% | |||||
STWD 2019-FL1 | Index | Collateral assets | |||||||
Summary of CLO | |||||||
Weighted Average Spread | 3.67% | ||||||
STWD 2021-SIF2 | |||||||
Summary of CLO | |||||||
Face Amount | $ 500,000 | ||||||
STWD 2021-SIF2 | Collateral assets | |||||||
Summary of CLO | |||||||
Count | Item | 30 | 31 | |||||
Face Amount | $ 499,401 | $ 495,587 | |||||
Carrying Value | $ 514,286 | $ 510,730 | |||||
STWD 2021-SIF2 | Financing | |||||||
Summary of CLO | |||||||
Count | Item | 1 | 1 | |||||
Face Amount | $ 410,000 | $ 410,000 | |||||
Carrying Value | $ 408,166 | $ 407,260 | |||||
STWD 2021-SIF2 | SOFR | Collateral assets | |||||||
Summary of CLO | |||||||
Weighted Average Spread | 3.87% | ||||||
STWD 2021-SIF2 | SOFR | Financing | |||||||
Summary of CLO | |||||||
Weighted Average Spread | 2.11% | 2.11% | |||||
STWD 2021-SIF2 | Index | Collateral assets | |||||||
Summary of CLO | |||||||
Weighted Average Spread | 3.73% | ||||||
STWD 2021-SIF1 | |||||||
Summary of CLO | |||||||
Face Amount | $ 500,000 | ||||||
Percent of outstanding loan | 2% | ||||||
Debt, weighted average interest rate | 5.70% | ||||||
STWD 2021-SIF1 | Collateral assets | |||||||
Summary of CLO | |||||||
Count | Item | 32 | 31 | |||||
Face Amount | $ 499,767 | $ 495,781 | |||||
Carrying Value | $ 514,594 | $ 511,471 | |||||
STWD 2021-SIF1 | Financing | |||||||
Summary of CLO | |||||||
Count | Item | 1 | 1 | |||||
Face Amount | $ 410,000 | $ 410,000 | |||||
Carrying Value | $ 408,187 | $ 406,753 | |||||
STWD 2021-SIF1 | SOFR | Collateral assets | |||||||
Summary of CLO | |||||||
Weighted Average Spread | 3.97% | ||||||
STWD 2021-SIF1 | SOFR | Financing | |||||||
Summary of CLO | |||||||
Weighted Average Spread | 2.42% | ||||||
STWD 2021-SIF1 | Index | Collateral assets | |||||||
Summary of CLO | |||||||
Weighted Average Spread | 3.76% | ||||||
STWD 2021-SIF1 | LIBOR | Financing | |||||||
Summary of CLO | |||||||
Weighted Average Spread | 2.15% |
Secured Borrowings - Principal
Secured Borrowings - Principal Repayments (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
CLOs and SASB | |
Repayment of secured financings | |
2024 | $ 505,165 |
2025 | 831,133 |
2026 | 1,818,554 |
2027 | 129,044 |
2028 | 206,597 |
Thereafter | 9,670 |
Total | 3,500,163 |
Secured Borrowings | |
Repayment of secured financings | |
2024 | 2,489,773 |
2025 | 3,296,932 |
2026 | 5,811,237 |
2027 | 4,474,363 |
2028 | 1,149,549 |
Thereafter | 227,137 |
Total | 17,448,991 |
Repurchase Agreements | |
Repayment of secured financings | |
2024 | 1,326,226 |
2025 | 2,186,047 |
2026 | 2,951,048 |
2027 | 3,225,566 |
2028 | 753,565 |
Thereafter | 209,907 |
Total | 10,652,359 |
Other Secured Financing | |
Repayment of secured financings | |
2024 | 658,382 |
2025 | 279,752 |
2026 | 1,041,635 |
2027 | 1,119,753 |
2028 | 189,387 |
Thereafter | 7,560 |
Total | $ 3,296,469 |
Unsecured Senior Notes - Unsecu
Unsecured Senior Notes - Unsecured Convertible Senior Notes Outstanding (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2023 | Jun. 30, 2023 | Dec. 31, 2023 | Jul. 31, 2023 | Dec. 31, 2022 | Jan. 25, 2022 | Dec. 15, 2021 | Jul. 14, 2021 | Nov. 02, 2020 | Dec. 04, 2017 | Mar. 31, 2017 | |
Unsecured Senior Notes | |||||||||||
Unsecured Senior Notes | |||||||||||
Long term debt, gross | $ 2,180,750 | $ 2,180,750 | $ 2,350,000 | ||||||||
Unamortized deferred financing costs | (7,847) | (7,847) | (11,620) | ||||||||
Total carrying amount | 2,158,888 | 2,158,888 | 2,329,211 | ||||||||
Unamortized discount—Convertible Notes | |||||||||||
Unsecured Senior Notes | |||||||||||
Unamortized discount | (8,570) | (8,570) | (118) | ||||||||
Unamortized discount—Senior Notes | |||||||||||
Unsecured Senior Notes | |||||||||||
Unamortized discount | $ (5,445) | $ (5,445) | (9,051) | ||||||||
2023 Convertible Notes | |||||||||||
Unsecured Senior Notes | |||||||||||
Coupon Rate | 4.38% | 4.38% | 4.375% | ||||||||
Effective Rate | 4.57% | 4.57% | |||||||||
Long term debt, gross | $ 0 | $ 0 | 250,000 | ||||||||
2027 Convertible Notes | |||||||||||
Unsecured Senior Notes | |||||||||||
Coupon Rate | 6.75% | 6.75% | 6.75% | ||||||||
Effective Rate | 7.48% | 7.48% | |||||||||
Remaining Period of Amortization | 3 years 6 months | ||||||||||
Long term debt, gross | $ 380,750 | $ 380,750 | 0 | ||||||||
2023 Senior Notes | |||||||||||
Unsecured Senior Notes | |||||||||||
Coupon Rate | 5.50% | 5.50% | 5.50% | ||||||||
Effective Rate | 5.71% | 5.71% | |||||||||
Long term debt, gross | $ 0 | $ 0 | 300,000 | ||||||||
2024 Senior Notes | |||||||||||
Unsecured Senior Notes | |||||||||||
Coupon Rate | 3.75% | 3.75% | 3.75% | ||||||||
Effective Rate | 3.94% | 3.94% | |||||||||
Remaining Period of Amortization | 1 year | ||||||||||
Long term debt, gross | $ 400,000 | $ 400,000 | 400,000 | ||||||||
2025 Senior Notes | |||||||||||
Unsecured Senior Notes | |||||||||||
Coupon Rate | 4.75% | 4.75% | 4.75% | ||||||||
Effective Rate | 5.04% | 5.04% | |||||||||
Remaining Period of Amortization | 1 year 2 months 12 days | ||||||||||
Long term debt, gross | $ 500,000 | $ 500,000 | 500,000 | ||||||||
2026 Senior Notes | |||||||||||
Unsecured Senior Notes | |||||||||||
Coupon Rate | 3.63% | 3.63% | 3.625% | ||||||||
Effective Rate | 3.77% | 3.77% | |||||||||
Remaining Period of Amortization | 2 years 6 months | ||||||||||
Long term debt, gross | $ 400,000 | $ 400,000 | 400,000 | ||||||||
2027 Senior Notes | |||||||||||
Unsecured Senior Notes | |||||||||||
Coupon Rate | 4.375% | 4.375% | 4.375% | ||||||||
Effective Rate | 4.49% | 4.49% | |||||||||
Remaining Period of Amortization | 3 years | ||||||||||
Long term debt, gross | $ 500,000 | $ 500,000 | $ 500,000 | ||||||||
LIBOR | 2025 Senior Notes | |||||||||||
Unsecured Senior Notes | |||||||||||
Long term debt, gross | $ 470,000 | $ 470,000 | |||||||||
Pricing margin (as a percent) | 2.53% | ||||||||||
SOFR | 2025 Senior Notes | |||||||||||
Unsecured Senior Notes | |||||||||||
Pricing margin (as a percent) | 2.53% | ||||||||||
SOFR | 2027 Senior Notes | |||||||||||
Unsecured Senior Notes | |||||||||||
Pricing margin (as a percent) | 2.95% |
Unsecured Senior Notes - Narrat
Unsecured Senior Notes - Narrative (Details) | 1 Months Ended | 12 Months Ended | ||||||||||
Jan. 25, 2022 USD ($) | Dec. 15, 2021 USD ($) | Jul. 14, 2021 USD ($) | Dec. 04, 2017 USD ($) | Jul. 31, 2023 USD ($) | Dec. 31, 2023 USD ($) condition $ / shares | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Nov. 01, 2023 USD ($) | Apr. 01, 2023 USD ($) | Nov. 02, 2020 USD ($) | Mar. 31, 2017 USD ($) | |
Secured Borrowings | ||||||||||||
Interest expense | $ 1,436,107,000 | $ 797,121,000 | $ 445,087,000 | |||||||||
Closing share price (in dollars per share) | $ / shares | $ 21.02 | |||||||||||
Unamortized discount—Convertible Notes | ||||||||||||
Secured Borrowings | ||||||||||||
Interest expense | $ 16,600,000 | $ 11,600,000 | $ 11,600,000 | |||||||||
2023 Senior Notes | ||||||||||||
Secured Borrowings | ||||||||||||
Face Amount | $ 300,000,000 | |||||||||||
Coupon Rate | 5.50% | 5.50% | ||||||||||
Proceeds from convertible debt | $ 300,000,000 | |||||||||||
2024 Senior Notes | ||||||||||||
Secured Borrowings | ||||||||||||
Face Amount | $ 400,000,000 | |||||||||||
Coupon Rate | 3.75% | 3.75% | ||||||||||
2024 Senior Notes | Redemption period one | ||||||||||||
Secured Borrowings | ||||||||||||
Redemption percentage | 100% | |||||||||||
2024 Senior Notes | Redemption period two | ||||||||||||
Secured Borrowings | ||||||||||||
Redemption percentage | 100% | |||||||||||
2024 Senior Notes | Redemption period three | ||||||||||||
Secured Borrowings | ||||||||||||
Redemption percentage | 40% | |||||||||||
2025 Senior Notes | ||||||||||||
Secured Borrowings | ||||||||||||
Face Amount | $ 500,000,000 | |||||||||||
Coupon Rate | 4.75% | 4.75% | ||||||||||
2025 Senior Notes | Redemption period one | ||||||||||||
Secured Borrowings | ||||||||||||
Redemption percentage | 100% | |||||||||||
2025 Senior Notes | Redemption period two | ||||||||||||
Secured Borrowings | ||||||||||||
Redemption percentage | 100% | |||||||||||
2026 Senior Notes | ||||||||||||
Secured Borrowings | ||||||||||||
Face Amount | $ 400,000,000 | |||||||||||
Coupon Rate | 3.625% | 3.63% | ||||||||||
2026 Senior Notes | Redemption period one | ||||||||||||
Secured Borrowings | ||||||||||||
Redemption percentage | 100% | |||||||||||
2026 Senior Notes | Redemption period two | ||||||||||||
Secured Borrowings | ||||||||||||
Redemption percentage | 100% | |||||||||||
2027 Senior Notes | ||||||||||||
Secured Borrowings | ||||||||||||
Face Amount | $ 500,000,000 | |||||||||||
Coupon Rate | 4.375% | 4.375% | ||||||||||
2027 Senior Notes | Redemption period one | ||||||||||||
Secured Borrowings | ||||||||||||
Redemption percentage | 100% | |||||||||||
2027 Senior Notes | Redemption period two | ||||||||||||
Secured Borrowings | ||||||||||||
Redemption percentage | 100% | |||||||||||
2027 Senior Notes | Redemption period three | ||||||||||||
Secured Borrowings | ||||||||||||
Redemption percentage | 40% | |||||||||||
2027 Convertible Notes | ||||||||||||
Secured Borrowings | ||||||||||||
Face Amount | $ 380,800,000 | |||||||||||
Coupon Rate | 6.75% | 6.75% | ||||||||||
Proceeds from convertible debt | $ 371,200,000 | |||||||||||
Amount by which if-converted value of the notes are greater than principal amount | $ 4,800,000 | |||||||||||
Conversion price (in dollars per share) | $ / shares | $ 20.76 | |||||||||||
If-converted value | $ 385,600,000 | |||||||||||
Convertible notes carrying value | 371,500,000 | |||||||||||
Convertible notes fair value | $ 390,600,000 | |||||||||||
Minimum number of conditions to be satisfied for conversion of debt | condition | 1 | |||||||||||
2027 Convertible Notes | Conversion upon satisfaction of closing market price condition | ||||||||||||
Secured Borrowings | ||||||||||||
Minimum trading period as a basis for debt conversion | 20 days | |||||||||||
Consecutive trading period as a basis for debt conversion | 30 days | |||||||||||
2027 Convertible Notes | Conversion upon satisfaction of trading price condition | ||||||||||||
Secured Borrowings | ||||||||||||
Consecutive trading period as a basis for debt conversion | 5 days | |||||||||||
2027 Convertible Notes | Minimum | Conversion upon satisfaction of closing market price condition | ||||||||||||
Secured Borrowings | ||||||||||||
Percentage of conversion price as a basis for debt conversion | 110% | |||||||||||
Period of average closing market price of common stock as a basis for debt conversion | 10 days | |||||||||||
Percentage of per share value of distributions that exceeds the market price of the entity's common stock as a basis for debt conversion | 10% | |||||||||||
2027 Convertible Notes | Maximum | Conversion upon satisfaction of trading price condition | ||||||||||||
Secured Borrowings | ||||||||||||
Percentage of conversion price and last reported sales price as a basis for debt conversion | 98% | |||||||||||
2023 Convertible Notes | ||||||||||||
Secured Borrowings | ||||||||||||
Face Amount | $ 250,000,000 | |||||||||||
Coupon Rate | 4.38% | 4.375% | ||||||||||
Proceeds from convertible debt | $ 250,000,000 |
Unsecured Senior Notes - Conver
Unsecured Senior Notes - Convertible Notes (Details) | 12 Months Ended |
Dec. 31, 2023 $ / shares | |
Unsecured Senior Notes | |
Closing share price (in dollars per share) | $ 21.02 |
2027 Convertible Notes | |
Unsecured Senior Notes | |
Conversion Rate | 48.1783 |
Conversion price (in dollars per share) | $ 20.76 |
Loan Securitization_Sale Acti_3
Loan Securitization/Sale Activities - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
RMBS | |||
Loan Transfer Activities | |||
Payments to acquire marketable securities | $ 0 | $ 0 | $ 524,500,000 |
Redemptions | 51,200,000 | ||
Commercial and Residential Lending Segment | |||
Loan Transfer Activities | |||
Net gains (losses) on the sale of loan qualifying for sales treatment | 0 | 0 | (1,100,000) |
Infrastructure Lending Segment | |||
Loan Transfer Activities | |||
Net gains (losses) on the sale of loan qualifying for sales treatment | 200,000 | ||
Loans held-for-sale face amount | $ 0 | $ 26,800,000 | 16,300,000 |
Proceeds | $ 15,300,000 |
Loan Securitization_Sale Acti_4
Loan Securitization/Sale Activities - Loans (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Feb. 28, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Investing and Servicing Segment | Commercial Loans | ||||
Loan Transfer Activities | ||||
Face Amount | $ 759,740 | $ 1,202,274 | $ 1,185,251 | |
Proceeds | 770,733 | 1,182,861 | 1,242,974 | |
Investing and Servicing Segment | Residential Loans | ||||
Loan Transfer Activities | ||||
Face Amount | 0 | 1,905,829 | 2,287,733 | |
Proceeds | 0 | 1,913,459 | 2,362,798 | |
Commercial and Residential Lending Segment | Mezzanine Loans | ||||
Loan Transfers Accounted for as Sales | ||||
Face amount | 95,500 | |||
Commercial and Residential Lending Segment | Commercial Loans | ||||
Loan Transfers Accounted for as Sales | ||||
Face amount | 95,496 | 75,235 | 335,552 | |
Proceeds | 95,271 | 74,859 | 328,878 | |
Commercial and Residential Lending Segment | Residential Loans | ||||
Loan Transfers Accounted for as Sales | ||||
Face amount | 0 | 1,057,013 | 216,827 | |
Proceeds | $ 0 | 1,056,683 | 225,940 | |
Commercial and Residential Lending Segment | Residential Loans | Agency-Eligible Residential Loan | ||||
Loan Transfers Accounted for as Sales | ||||
Face amount | $ 745,000 | 745,000 | ||
First Mortgage Loans | ||||
Loan Transfers Accounted for as Sales | ||||
Face amount | 11,500 | 313,000 | ||
Proceeds from sale of mortgage loans | 10,200 | 307,300 | ||
Whole Loan Interest | ||||
Loan Transfers Accounted for as Sales | ||||
Face amount | 63,700 | 22,600 | ||
Proceeds from sale of mortgage loans | $ 64,600 | $ 21,500 |
Derivatives and Hedging Activ_3
Derivatives and Hedging Activity - Designated and Non-Designated Hedges (Details) € in Thousands, £ in Thousands, SFr in Thousands, $ in Thousands, $ in Thousands | Dec. 31, 2023 EUR (€) contract | Dec. 31, 2023 GBP (£) contract | Dec. 31, 2023 AUD ($) contract | Dec. 31, 2023 CHF (SFr) contract | Dec. 31, 2023 USD ($) contract |
Derivatives | |||||
Number of Contracts | 710 | 710 | 710 | 710 | 710 |
Foreign exchange contracts | EUR | Long | |||||
Derivatives | |||||
Number of Contracts | 14 | 14 | 14 | 14 | 14 |
Aggregate Notional Amount | € | € 28,805 | ||||
Foreign exchange contracts | EUR | Short | |||||
Derivatives | |||||
Number of Contracts | 186 | 186 | 186 | 186 | 186 |
Aggregate Notional Amount | € | € 843,888 | ||||
Foreign exchange contracts | GBP | Long | |||||
Derivatives | |||||
Number of Contracts | 17 | 17 | 17 | 17 | 17 |
Aggregate Notional Amount | £ | £ 129,948 | ||||
Foreign exchange contracts | GBP | Short | |||||
Derivatives | |||||
Number of Contracts | 221 | 221 | 221 | 221 | 221 |
Aggregate Notional Amount | £ | £ 668,887 | ||||
Foreign exchange contracts | AUD | Long | |||||
Derivatives | |||||
Number of Contracts | 12 | 12 | 12 | 12 | 12 |
Aggregate Notional Amount | $ | $ 822,069 | ||||
Foreign exchange contracts | AUD | Short | |||||
Derivatives | |||||
Number of Contracts | 133 | 133 | 133 | 133 | 133 |
Aggregate Notional Amount | $ | $ 1,704,744 | ||||
Foreign exchange contracts | CHF | Short | |||||
Derivatives | |||||
Number of Contracts | 65 | 65 | 65 | 65 | 65 |
Aggregate Notional Amount | SFr | SFr 20,423 | ||||
Interest rate swaps – Paying fixed rates | USD | |||||
Derivatives | |||||
Number of Contracts | 51 | 51 | 51 | 51 | 51 |
Aggregate Notional Amount | $ | $ 4,456,559 | ||||
Interest rate swaps – Receiving fixed rates | USD | |||||
Derivatives | |||||
Number of Contracts | 2 | 2 | 2 | 2 | 2 |
Aggregate Notional Amount | $ | $ 970,000 | ||||
Interest rate caps | GBP | |||||
Derivatives | |||||
Number of Contracts | 1 | 1 | 1 | 1 | 1 |
Aggregate Notional Amount | £ | £ 61,000 | ||||
Interest rate caps | USD | |||||
Derivatives | |||||
Number of Contracts | 4 | 4 | 4 | 4 | 4 |
Aggregate Notional Amount | $ | $ 624,499 | ||||
Credit instruments | USD | |||||
Derivatives | |||||
Number of Contracts | 3 | 3 | 3 | 3 | 3 |
Aggregate Notional Amount | $ | $ 49,000 | ||||
Interest rate swap guarantees | USD | |||||
Derivatives | |||||
Number of Contracts | 1 | 1 | 1 | 1 | 1 |
Aggregate Notional Amount | $ | $ 100,456 |
Derivatives and Hedging Activ_4
Derivatives and Hedging Activity - Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Fair value of derivative instruments | ||
Fair Value of Derivatives in an Asset Position | $ 63,437 | $ 108,621 |
Fair Value of Derivatives in a Liability Position | 102,467 | 91,404 |
Interest rate contracts | ||
Fair value of derivative instruments | ||
Fair Value of Derivatives in an Asset Position | 8,899 | 10,756 |
Fair Value of Derivatives in a Liability Position | 48,401 | 69,776 |
Interest rate swap guarantees | ||
Fair value of derivative instruments | ||
Fair Value of Derivatives in an Asset Position | 0 | 0 |
Fair Value of Derivatives in a Liability Position | 0 | 0 |
Foreign exchange contracts | ||
Fair value of derivative instruments | ||
Fair Value of Derivatives in an Asset Position | 53,979 | 97,289 |
Fair Value of Derivatives in a Liability Position | 54,066 | 21,628 |
Credit instruments | ||
Fair value of derivative instruments | ||
Fair Value of Derivatives in an Asset Position | 559 | 576 |
Fair Value of Derivatives in a Liability Position | $ 0 | $ 0 |
Derivatives and Hedging Activ_5
Derivatives and Hedging Activity - Effect on Financial Statements (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Derivatives | |||
Gain (Loss) Recognized in Income | $ (38,605) | $ 334,015 | $ 82,363 |
Interest rate contracts | |||
Derivatives | |||
Gain (Loss) Recognized in Income | 27,293 | 216,778 | 41,033 |
Interest rate swap guarantees | |||
Derivatives | |||
Gain (Loss) Recognized in Income | 0 | 260 | 589 |
Foreign exchange contracts | |||
Derivatives | |||
Gain (Loss) Recognized in Income | (65,085) | 116,443 | 41,228 |
Credit instruments | |||
Derivatives | |||
Gain (Loss) Recognized in Income | $ (813) | $ 534 | $ (487) |
Offsetting Assets and Liabili_3
Offsetting Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Derivative assets | ||
Gross Amounts Recognized | $ 63,437 | $ 108,621 |
Gross Amounts Offset in the Statement of Financial Position | 0 | 0 |
Net Amounts Presented in the Statement of Financial Position | 63,437 | 108,621 |
Derivative assets, Gross Amounts Not Offset in the Statements of Financial Position, Financial Instruments | 41,341 | 69,221 |
Derivative assets, Gross Amounts Not Offset in the Statements of Financial Position, Cash Collateral Received/Pledged | 0 | 0 |
Total net derivative assets | 22,096 | 39,400 |
Derivative liabilities | ||
Gross Amounts Recognized | 102,467 | 91,404 |
Gross Amounts Offset in the Statement of Financial Position | 0 | 0 |
Net Amounts Presented in the Statement of Financial Position | 102,467 | 91,404 |
Derivative liabilities, Gross Amounts Not Offset in the Statements of Financial Position, Financial Instruments | 41,340 | 69,221 |
Derivative liabilities, Gross Amounts Not Offset in the Statements of Financial Position, Cash Collateral Received/Pledged | 61,127 | 22,183 |
Total net derivative liabilities | 0 | 0 |
Repurchase agreements | ||
Gross Amounts Recognized | 10,652,359 | 10,799,120 |
Gross Amounts Offset in the Statement of Financial Position | 0 | 0 |
Net Amounts Presented in the Statement of Financial Position | 10,652,359 | 10,799,120 |
Repurchase agreements, Gross Amounts Not Offset in the Statements of Financial Position, Financial Instruments | 10,652,359 | 10,799,120 |
Repurchase agreements, Gross Amounts Not Offset in the Statements of Financial Position, Cash Collateral Received/Pledged | 0 | 0 |
Total net repurchase agreements | 0 | 0 |
Offsetting Derivative Liability, Securities Sold under Agreements to Repurchase, Securities Loaned [Abstract] | ||
Gross Amounts Recognized | 10,754,826 | 10,890,524 |
Gross Amounts Offset in the Statement of Financial Position | 0 | 0 |
Net Amounts Presented in the Statement of Financial Position | 10,754,826 | 10,890,524 |
Liabilities, Gross Amounts Not Offset in the Statements of Financial Position, Financial Instruments | 10,693,699 | 10,868,341 |
Liabilities, Gross Amounts Not Offset in the Statements of Financial Position, Cash Collateral Received/Pledged | 61,127 | 22,183 |
Total net liabilities | $ 0 | $ 0 |
Variable Interest Entities - Na
Variable Interest Entities - Narrative (Details) | 12 Months Ended | |||
Dec. 31, 2023 USD ($) loan collateralized_loan_obligation | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Variable interest entities | ||||
Number of CLOs | collateralized_loan_obligation | 5 | |||
Number of SASBs | loan | 1 | |||
VIE assets | $ 69,504,196,000 | $ 79,043,129,000 | ||
VIE liabilities | 62,481,214,000 | 71,844,422,000 | ||
Temporary Equity: Redeemable non-controlling interests | 414,348,000 | 362,790,000 | $ 214,915,000 | $ 0 |
Investments in unconsolidated entities | $ 90,376,000 | $ 91,892,000 | ||
CMBS JV | ||||
Variable interest entities | ||||
Participation / Ownership % | 51% | |||
Primary beneficiary | ||||
Variable interest entities | ||||
VIE assets | $ 47,800,000 | |||
VIE liabilities | 10,300,000 | |||
Primary beneficiary | CMBS Venture Holdings | ||||
Variable interest entities | ||||
VIE assets | 313,300,000 | |||
VIE liabilities | 68,600,000 | |||
Primary beneficiary | SPT Dolphin | ||||
Variable interest entities | ||||
VIE assets | 2,000,000,000 | |||
VIE liabilities | 0 | |||
Primary beneficiary | Woodstar Feeder Fund, L.P. | ||||
Variable interest entities | ||||
VIE assets | 600,000,000 | |||
VIE liabilities | 0 | |||
Temporary Equity: Redeemable non-controlling interests | 400,000,000 | |||
Not primary beneficiary | ||||
Variable interest entities | ||||
Maximum risk of loss related to VIEs, on fair value basis | 18,600,000 | |||
Not primary beneficiary | Measurement Period Adjustments | ||||
Variable interest entities | ||||
Investments in unconsolidated entities | 800,000 | |||
Not primary beneficiary | Securitization SPEs | ||||
Variable interest entities | ||||
Long term debt, gross | $ 4,300,000,000 |
Variable Interest Entities - As
Variable Interest Entities - Assets and Liabilities of Consolidated CLO (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Assets: | ||
Cash and cash equivalents | $ 194,660 | $ 261,061 |
Loans held-for-investment | 17,574,249 | 18,401,439 |
Investment securities | 735,562 | 815,804 |
Accrued interest receivable | 200,867 | 168,521 |
Other assets | 420,773 | 297,477 |
Total Assets | 69,504,196 | 79,043,129 |
Liabilities | ||
Collateralized loan obligations and single asset securitization, net | 3,491,292 | 3,676,224 |
Total Liabilities | 62,481,214 | 71,844,422 |
Primary beneficiary | ||
Assets: | ||
Total Assets | 47,800 | |
Liabilities | ||
Total Liabilities | 10,300 | |
CLOs and SASB | Primary beneficiary | ||
Assets: | ||
Cash and cash equivalents | 33,175 | 31,611 |
Investment securities | 9,946 | 36,466 |
Accrued interest receivable | 26,355 | 20,088 |
Other assets | 9,197 | 131 |
Total Assets | 4,288,770 | 4,454,087 |
Liabilities | ||
Accounts payable, accrued expenses and other liabilities | 21,174 | 17,737 |
Collateralized loan obligations and single asset securitization, net | 3,491,292 | 3,676,224 |
Total Liabilities | 3,512,466 | 3,693,961 |
CLOs and SASB | Primary beneficiary | Loans held for investment | ||
Assets: | ||
Loans held-for-investment | $ 4,210,097 | $ 4,365,791 |
Related-Party Transactions - Ma
Related-Party Transactions - Management Agreement (Details) | 12 Months Ended | ||
Dec. 31, 2023 USD ($) qtr d shares | Dec. 31, 2022 USD ($) shares | Dec. 31, 2021 USD ($) shares | |
Related-Party Transactions | |||
Trading days period | d | 5 | ||
Granted (in shares) | shares | 914,694 | ||
Share-based expense | $ 52,949,000 | $ 65,089,000 | $ 74,421,000 |
Manager Equity Plan | |||
Related-Party Transactions | |||
Granted (in shares) | shares | 0 | ||
S P T Management L L C | |||
Related-Party Transactions | |||
Base management fee | 1.50% | ||
Management fee expense | $ 87,300,000 | 86,700,000 | 77,900,000 |
Base management fee payable | $ 21,900,000 | 21,800,000 | |
Core earnings period threshold | 12 months | ||
Core earnings threshold percentage | 8% | ||
Core earnings threshold, number of quarters | qtr | 12 | ||
Core earnings threshold amount | $ 0 | ||
Incentive fee calculation amount | $ 0 | ||
Incentive fee calculation multiplication factor | 20% | ||
Rolling period | 12 months | ||
Stock value factor | 8% | ||
Incentive fee quarters period | qtr | 3 | ||
Percentage of installment payable in shares | 50% | ||
Stock ownership limit | 9.80% | ||
Accrued incentive fee | $ 35,700,000 | 49,600,000 | 70,300,000 |
Unpaid incentive fee | 19,500,000 | 14,500,000 | |
Executive compensation expense | 8,000,000 | 8,600,000 | $ 7,100,000 |
Unpaid reimbursable compensation | $ 3,400,000 | $ 4,900,000 | |
Percentage of votes needed to terminate agreement | 66.67% | ||
Termination period notice | 180 days | ||
Termination fee multiplier | 3 | ||
Termination fee period quarters | qtr | 8 | ||
Termination fee payable | $ 0 | ||
Termination period without notice | 30 days | ||
S P T Management L L C | Restricted Stock Awards | |||
Related-Party Transactions | |||
Granted (in shares) | shares | 226,955 | 200,972 | 1,013,232 |
Grant date values | $ 4,300,000 | $ 4,800,000 | $ 20,300,000 |
Share-based expense | $ 8,700,000 | $ 8,900,000 | $ 9,700,000 |
S P T Management L L C | Restricted Stock Awards | Manager Equity Plan | |||
Related-Party Transactions | |||
Vesting Period | 3 years | ||
S P T Management L L C | Employee Stock | |||
Related-Party Transactions | |||
Share-based expense | $ 0 |
Related-Party Transactions - _2
Related-Party Transactions - Manager Equity Plan (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||||
Nov. 30, 2022 | Nov. 30, 2020 | Sep. 30, 2019 | Apr. 30, 2018 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Related-Party Transactions | |||||||
Granted (in shares) | 914,694 | ||||||
Share-based expense | $ 52,949 | $ 65,089 | $ 74,421 | ||||
Manager Equity Plan | |||||||
Related-Party Transactions | |||||||
Granted (in shares) | 0 | ||||||
Restricted stock units | Manager Equity Plan | |||||||
Related-Party Transactions | |||||||
Granted (in shares) | 1,500,000 | 1,800,000 | 1,200,000 | 775,000 | |||
Share-based expense | $ 18,000 | $ 18,700 | $ 19,400 |
Related-Party Transactions - In
Related-Party Transactions - Investments in Loans and Securities (Details) € in Millions | 1 Months Ended | 12 Months Ended | 132 Months Ended | |||||||||||
Aug. 31, 2023 USD ($) | Mar. 31, 2022 USD ($) Item | Jul. 31, 2019 USD ($) | Apr. 30, 2019 USD ($) | Feb. 28, 2019 USD ($) powerPlant | Mar. 31, 2018 EUR (€) | Jan. 31, 2018 USD ($) powerPlant | Dec. 31, 2012 USD ($) shares | Dec. 31, 2023 USD ($) shares | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2012 USD ($) shares | Dec. 31, 2022 USD ($) shares | Dec. 31, 2020 USD ($) | |
Related-Party Transactions | ||||||||||||||
Acquisitions/originations/additional funding | $ 3,474,242,000 | $ 10,178,734,000 | $ 13,990,579,000 | |||||||||||
Loan balance | $ 20,219,886,000 | 21,186,033,000 | 18,413,649,000 | $ 21,186,033,000 | $ 12,139,908,000 | |||||||||
SEREF | ||||||||||||||
Related-Party Transactions | ||||||||||||||
Number of shares acquired (in shares) | shares | 9,140,000 | |||||||||||||
Number of shares redeemed (in shares) | shares | 1,892,313 | 0 | ||||||||||||
Proceeds from shares redeemed | $ 2,500,000 | |||||||||||||
Remaining held (in shares) | shares | 7,247,687 | |||||||||||||
Ownership percentage | 2.30% | |||||||||||||
Purchase of First Mortgage Loan Participation | ||||||||||||||
Related-Party Transactions | ||||||||||||||
Number of properties securing investment | powerPlant | 3 | |||||||||||||
Purchase of First Mortgage Loan Participation | First mortgage loan participation | ||||||||||||||
Related-Party Transactions | ||||||||||||||
Acquisitions/originations/additional funding | $ 130,000,000 | |||||||||||||
Affiliated Entity | SEREF | ||||||||||||||
Related-Party Transactions | ||||||||||||||
Number of shares redeemed (in shares) | shares | 1,892,313 | |||||||||||||
Proceeds from shares redeemed | $ 2,500,000 | |||||||||||||
Remaining held (in shares) | shares | 7,247,687 | |||||||||||||
Ownership percentage | 2% | |||||||||||||
Affiliated Entity | Residential Mortgage Originator | ||||||||||||||
Related-Party Transactions | ||||||||||||||
Proceeds from sale of receivables | $ 0 | 4,400,000 | 3,500,000 | |||||||||||
Affiliated Entity | Residential Mortgage Originator | Residential Loans | ||||||||||||||
Related-Party Transactions | ||||||||||||||
Acquisitions/originations/additional funding | 0 | $ 1,100,000,000 | $ 1,200,000,000 | |||||||||||
Affiliated Entity | SEREF | ||||||||||||||
Related-Party Transactions | ||||||||||||||
Number of shares acquired (in shares) | shares | 9,140,000 | |||||||||||||
Investment securities value | $ 14,700,000 | $ 14,700,000 | ||||||||||||
Ownership acquired in investment | 4% | |||||||||||||
Affiliated Entity | Origination of First Mortgage Loan | ||||||||||||||
Related-Party Transactions | ||||||||||||||
Proceeds from repayments on loans | $ 29,400,000 | |||||||||||||
First priority term loan | $ 339,200,000 | |||||||||||||
Affiliated Entity | Development And Recapitalization Of Luxury Rental Cabins | ||||||||||||||
Related-Party Transactions | ||||||||||||||
Loans payable | 148,500,000 | |||||||||||||
Loan number of extension options | Item | 3 | |||||||||||||
Loan extension term | 1 year | |||||||||||||
Loan payable, payment deferral term | 10 months | |||||||||||||
Loan payable, payment deferral interest rate | 3% | |||||||||||||
Loans payable, payment deferral, interest | 2,300,000 | |||||||||||||
Affiliated Entity | Development And Recapitalization Of Luxury Rental Cabins | SOFR | ||||||||||||||
Related-Party Transactions | ||||||||||||||
Loans payable, basis spread | 6.50% | |||||||||||||
Affiliated Entity | Office portfolio located in Spain | SEREF | ||||||||||||||
Related-Party Transactions | ||||||||||||||
Acquisitions/originations/additional funding | € | € 55 | |||||||||||||
Affiliated Entity | Purchase of First Priority Infrastructure Term Loan Participation | Starwood Energy Group | ||||||||||||||
Related-Party Transactions | ||||||||||||||
Acquisitions/originations/additional funding | $ 16,000,000 | $ 5,000,000 | $ 60,000,000 | |||||||||||
First priority term loan | $ 925,000,000 | |||||||||||||
Upsize to term loan | $ 350,000,000 | |||||||||||||
Number of domestic natural gas power plants | powerPlant | 4 | |||||||||||||
Loan balance | $ 60,700,000 | |||||||||||||
Affiliated Entity | Loans Payable | Development And Recapitalization Of Luxury Rental Cabins | ||||||||||||||
Related-Party Transactions | ||||||||||||||
Face amount | $ 200,000,000 | |||||||||||||
Maturity period | 24 months |
Related-Party Transactions - _3
Related-Party Transactions - Investments in Unconsolidated Entities (Details) - Joint Venture One | 1 Months Ended |
Apr. 30, 2013 | |
Related-Party Transactions | |
Ownership percentage acquired | 50% |
Starwood Distressed Opportunity Fund I X | |
Related-Party Transactions | |
Ownership percentage acquired | 50% |
Related-Party Transactions - Le
Related-Party Transactions - Leasing Arrangements (Details) $ in Millions | 1 Months Ended | 12 Months Ended | ||||
Sep. 30, 2022 ft² $ / sqft | Dec. 31, 2021 ft² $ / sqft | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Jul. 01, 2022 USD ($) | Apr. 30, 2020 USD ($) | |
Office Lease Agreement with Affiliate of Chairman and CEO | Affiliates of Chairman and CEO | ||||||
Related-Party Transactions | ||||||
Area of office space | ft² | 64,424 | |||||
Term of master lease agreements | 15 years | |||||
Annual base rent (in usd per sq ft) | $ / sqft | 52 | |||||
Percent increase in base rent | 3% | |||||
Security deposit | $ 1.9 | |||||
Payments for tenant improvements | $ 1.3 | $ 4.4 | ||||
Rent payments | 6.6 | 1.1 | ||||
Rent expense | $ 7.2 | $ 2.7 | ||||
Operating lease, right-of-use asset | $ 29.8 | |||||
Office Lease Agreement with Affiliate of Manager | Affiliated Entity | ||||||
Related-Party Transactions | ||||||
Area of office space | ft² | 5,500 | |||||
Term of master lease agreements | 4 years 6 months | |||||
Annual base rent (in usd per sq ft) | $ / sqft | 59.16 | |||||
Percent increase in base rent | 3% |
Related-Party Transactions - Ac
Related-Party Transactions - Acquisitions from Consolidated CMBS Trusts (Details) - Reo Portfolio - CMBS - Investing and Servicing Segment - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | |
Related-Party Transactions | |||
Assets acquired | $ 9,200,000 | $ 0 | $ 0 |
Consideration transferred | $ 10,100,000 |
Related-Party Transactions - _4
Related-Party Transactions - Acquisitions from Consolidated RMBS Trusts (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
RMBS | |||
Related-Party Transactions | |||
Payments to acquire marketable securities | $ 0 | $ 0 | $ 524,500,000 |
Related-Party Transactions - Ot
Related-Party Transactions - Other Related-Party Arrangements (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Highmark Residential | |||
Related-Party Transactions | |||
Amounts of transaction | $ 6 | $ 5.6 | $ 4.2 |
Fund Participants | Reo Portfolio | |||
Related-Party Transactions | |||
Aggregate commitment | 15 | ||
Capital commitments funded | $ 4.9 | ||
Additional earning increments of operating cash flows | 60% | ||
Preferred return rate | 5% | ||
Non-controlling interest income | $ 1.9 | $ 1.9 | $ 0.2 |
Fund Participants | Reo Portfolio | Fund Participants | |||
Related-Party Transactions | |||
Ownership percentage | 10% |
Stockholders' Equity and Non-_3
Stockholders' Equity and Non-Controlling Interests - Narrative (Details) $ / shares in Units, $ in Thousands | 1 Months Ended | 2 Months Ended | 12 Months Ended | ||||||||
Nov. 06, 2021 USD ($) | Nov. 05, 2021 USD ($) | Apr. 30, 2022 USD ($) shares | Dec. 31, 2021 USD ($) $ / shares shares | Dec. 31, 2021 USD ($) $ / shares | Dec. 31, 2023 USD ($) extension $ / shares shares | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2021 USD ($) $ / shares shares | Dec. 31, 2018 shares | May 31, 2022 USD ($) | May 31, 2014 shares | |
Equity Incentive Plans | |||||||||||
Preferred stock, shares authorized (in shares) | shares | 100,000,000 | 100,000,000 | |||||||||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | |||||||||
Common stock, shares authorized (in shares) | shares | 500,000,000 | 500,000,000 | |||||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | |||||||||
Commission costs under ATM agreement | $ 0 | $ 1,074 | $ 720 | ||||||||
Shares authorized under DRIP plan (in shares) | shares | 11,000,000 | ||||||||||
Granted (in shares) | shares | 914,694 | ||||||||||
Granted (in dollars per share) | $ / shares | $ 18.93 | $ 21.95 | $ 22.14 | ||||||||
Unrecognized compensation expense | $ 37,400 | ||||||||||
Compensation recognition period | 1 year 8 months 12 days | ||||||||||
Fair value of shares vested in period | $ 30,300 | $ 30,000 | $ 32,400 | ||||||||
Contributions from non-controlling interests | 2,724 | 21,925 | 219,757 | ||||||||
Net income | $ 700 | 58,410 | 153,820 | 748 | |||||||
Net income attributable to non-controlling interests | $ 78,944 | $ 187,586 | 44,687 | ||||||||
CMBS JV | |||||||||||
Equity Incentive Plans | |||||||||||
Participation / Ownership % | 51% | ||||||||||
Class A Units | |||||||||||
Equity Incentive Plans | |||||||||||
Value of shares issued to settle redemption | $ 100 | 900 | |||||||||
Number of shares redeemed (in shares) | shares | 0 | ||||||||||
Cash amount settled | $ 1,300 | ||||||||||
Number of units outstanding (in shares) | shares | 9,700,000 | ||||||||||
Woodstar II Portfolio | Class A Units | |||||||||||
Equity Incentive Plans | |||||||||||
Net income attributable to non-controlling interests | $ 18,700 | $ 18,800 | 19,400 | ||||||||
Subsidiaries | Woodstar II Portfolio | Class A Units | |||||||||||
Equity Incentive Plans | |||||||||||
Shares issued (in shares) | shares | 10,200,000 | ||||||||||
Right to receive additional shares (in shares) | shares | 1,900,000 | 1,900,000 | |||||||||
Subsidiaries | Woodstar II Portfolio | Class A Units | Non- Controlling Interests | |||||||||||
Equity Incentive Plans | |||||||||||
Redemption of units | $ 207,100 | 208,500 | |||||||||
Woodstar Fund | |||||||||||
Equity Incentive Plans | |||||||||||
Percentage of interest sold | 20.60% | ||||||||||
Contributions from non-controlling interests | $ 214,200 | $ 216,000 | |||||||||
Initial term | 8 years | ||||||||||
Number of extension options | extension | 2 | ||||||||||
Extension term | 1 year | ||||||||||
CMBS JV | |||||||||||
Equity Incentive Plans | |||||||||||
Non-controlling interest | $ 129,200 | 144,300 | |||||||||
CMBS JV | Joint Venture Partner | |||||||||||
Equity Incentive Plans | |||||||||||
Ownership percentage | 49% | ||||||||||
CMBS JV | Woodstar II Portfolio | Class A Units | |||||||||||
Equity Incentive Plans | |||||||||||
Net income attributable to non-controlling interests | $ (1,500) | $ 6,200 | $ 22,700 | ||||||||
Starwood Property Trust, Inc. Equity Plan and Manager Equity Plan | |||||||||||
Equity Incentive Plans | |||||||||||
Number of shares of authorized for issuance (in shares) | shares | 18,700,000 | ||||||||||
Number of shares available for future grants (in shares) | shares | 16,510,282 | ||||||||||
Vesting Period | 3 years | ||||||||||
Employee Stock | |||||||||||
Equity Incentive Plans | |||||||||||
Purchase price of fair market value | 85% | ||||||||||
Maximum purchase value during calendar year, per employee | $ 25 | ||||||||||
Number of shares of authorized for issuance (in shares) | shares | 2,000,000 | ||||||||||
Number of shares issued for future grants (in shares) | shares | 123,327 | 67,965 | |||||||||
Purchase price (in dollars per share) | $ / shares | $ 15.46 | $ 17.36 | |||||||||
Common stock available for future issuance (in shares) | shares | 1,800,000 | ||||||||||
Restricted stock | Starwood Property Trust, Inc. Equity Plan and Manager Equity Plan | |||||||||||
Equity Incentive Plans | |||||||||||
Granted (in shares) | shares | 914,694 | 829,805 | 1,708,935 | ||||||||
ATM Agreement | |||||||||||
Equity Incentive Plans | |||||||||||
Authorized value of stock under ATM agreement | $ 500,000 | ||||||||||
Number of shares issued (in shares) | shares | 0 | 2,168,710 | 0 | ||||||||
Proceeds from ATM Agreement | $ 49,300 | ||||||||||
Sale of stock average price (in dollars per share) | $ / shares | $ 22.72 | ||||||||||
Commission costs under ATM agreement | $ 1,000 | ||||||||||
Public Offering | |||||||||||
Equity Incentive Plans | |||||||||||
Number of shares issued (in shares) | shares | 16,000,000 | ||||||||||
Proceeds from ATM Agreement | $ 393,100 | ||||||||||
Sale of stock average price (in dollars per share) | $ / shares | $ 24.57 | $ 24.57 | $ 24.57 |
Stockholders' Equity and Non-_4
Stockholders' Equity and Non-Controlling Interests - Declared Dividends (Details) - $ / shares | 12 Months Ended | ||||||||||||||
Dec. 15, 2023 | Sep. 15, 2023 | Jun. 15, 2023 | Mar. 16, 2023 | Dec. 09, 2022 | Sep. 16, 2022 | Jun. 15, 2022 | Mar. 14, 2022 | Dec. 15, 2021 | Sep. 15, 2021 | Jun. 14, 2021 | Mar. 11, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Stockholders' Equity Note [Abstract] | |||||||||||||||
Dividends declared per common share (in dollars per share) | $ 0.48 | $ 0.48 | $ 0.48 | $ 0.48 | $ 0.48 | $ 0.48 | $ 0.48 | $ 0.48 | $ 0.48 | $ 0.48 | $ 0.48 | $ 0.48 | $ 1.92 | $ 1.92 | $ 1.92 |
Stockholders' Equity and Non-_5
Stockholders' Equity and Non-Controlling Interests - Equity Incentive Plans (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Nov. 30, 2022 | Nov. 30, 2020 | Sep. 30, 2019 | Apr. 30, 2018 | Dec. 31, 2023 | |
Equity Incentive Plans | |||||
Granted (in shares) | 914,694 | ||||
Manager Equity Plan | |||||
Equity Incentive Plans | |||||
Granted (in shares) | 0 | ||||
Restricted stock units | Manager Equity Plan | |||||
Equity Incentive Plans | |||||
Granted (in shares) | 1,500,000 | 1,800,000 | 1,200,000 | 775,000 | |
Grant Date Fair Value | $ 31,605 | $ 30,078 | $ 29,484 | $ 16,329 | |
Vesting Period | 3 years | 3 years | 3 years | ||
Restricted stock units | Manager Equity Plan | Vested immediately on the grant date | |||||
Equity Incentive Plans | |||||
Granted (in shares) | 218,898 | ||||
Restricted stock units | Manager Equity Plan | Remaining vesting | |||||
Equity Incentive Plans | |||||
Vesting Period | 3 years |
Stockholders' Equity and Non-_6
Stockholders' Equity and Non-Controlling Interests - Common Stock Issued to Manager (Details) - Manager Equity Plan - $ / shares | 1 Months Ended | ||||||||||
Aug. 31, 2023 | May 31, 2023 | Mar. 31, 2023 | Nov. 30, 2022 | Aug. 31, 2022 | May 31, 2022 | Feb. 28, 2022 | Nov. 30, 2021 | Aug. 31, 2021 | May 31, 2021 | Feb. 28, 2021 | |
Equity Incentive Plans | |||||||||||
Shares of common stock issued (in shares) | 92,640 | 377,207 | 373,204 | 21,390 | 108,374 | 647,128 | 1,068,828 | 18,649 | 97,151 | 267,378 | 332,002 |
Price per share (in dollars per share) | $ 20.59 | $ 16.39 | $ 19.38 | $ 20.92 | $ 23.94 | $ 22.69 | $ 23.78 | $ 26.08 | $ 25.79 | $ 24.54 | $ 22.55 |
Stockholders' Equity and Non-_7
Stockholders' Equity and Non-Controlling Interests - Share Based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Equity Incentive Plans | |||
Share-based expense | $ 52,949 | $ 65,089 | $ 74,421 |
Management Fees | |||
Equity Incentive Plans | |||
Share-based expense | 31,730 | 43,596 | 54,583 |
Management Fees | Manager Equity Plan | |||
Equity Incentive Plans | |||
Share-based expense | 18,027 | 18,693 | 19,448 |
Management Fees | Management Agreement | |||
Equity Incentive Plans | |||
Share-based expense | 13,703 | 24,903 | 35,135 |
General and Administrative Expense | |||
Equity Incentive Plans | |||
Share-based expense | 21,219 | 21,492 | 19,838 |
General and Administrative Expense | Employee Stock | |||
Equity Incentive Plans | |||
Share-based expense | 459 | 273 | 0 |
General and Administrative Expense | Equity Plan | |||
Equity Incentive Plans | |||
Share-based expense | $ 20,761 | $ 21,219 | $ 19,838 |
Stockholders' Equity and Non-_8
Stockholders' Equity and Non-Controlling Interests - Non-Vested Shares (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Non-Vested Shares and Share Equivalents activity | |||
Balance at the beginning of the period (in shares) | 4,338,847 | ||
Granted (in shares) | 914,694 | ||
Vested (in shares) | (1,637,743) | ||
Forfeited (in shares) | (169,070) | ||
Balance at the end of the period (in shares) | 3,446,728 | 4,338,847 | |
Weighted Average Grant Date Fair Value (per share) | |||
Balance at the beginning of period (in dollars per share) | $ 20.65 | ||
Granted (in dollars per share) | 18.93 | $ 21.95 | $ 22.14 |
Vested (in dollars per share) | 18.56 | ||
Forfeited (in dollars per share) | 22.76 | ||
Balance at the end of period (in dollars per share) | $ 21.08 | $ 20.65 | |
Equity Plan | |||
Non-Vested Shares and Share Equivalents activity | |||
Balance at the beginning of the period (in shares) | 2,513,847 | ||
Granted (in shares) | 914,694 | ||
Vested (in shares) | (687,743) | ||
Forfeited (in shares) | (169,070) | ||
Balance at the end of the period (in shares) | 2,571,728 | 2,513,847 | |
Manager Equity Plan | |||
Non-Vested Shares and Share Equivalents activity | |||
Balance at the beginning of the period (in shares) | 1,825,000 | ||
Granted (in shares) | 0 | ||
Vested (in shares) | (950,000) | ||
Forfeited (in shares) | 0 | ||
Balance at the end of the period (in shares) | 875,000 | 1,825,000 |
Stockholders' Equity and Non-_9
Stockholders' Equity and Non-Controlling Interests - Vesting Schedule (Details) - shares | Dec. 31, 2023 | Dec. 31, 2022 |
Equity Incentive Plans | ||
2024 (in shares) | 2,174,540 | |
2025 (in shares) | 958,200 | |
2026 (in shares) | 313,988 | |
Total (in shares) | 3,446,728 | 4,338,847 |
Equity Plan | ||
Equity Incentive Plans | ||
2024 (in shares) | 1,674,540 | |
2025 (in shares) | 583,200 | |
2026 (in shares) | 313,988 | |
Total (in shares) | 2,571,728 | 2,513,847 |
Manager Equity Plan | ||
Equity Incentive Plans | ||
2024 (in shares) | 500,000 | |
2025 (in shares) | 375,000 | |
2026 (in shares) | 0 | |
Total (in shares) | 875,000 | 1,825,000 |
Earnings per Share - Reconcilia
Earnings per Share - Reconciliation of Net Income and Number of Shares used in Computation of Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Basic Earnings | |||
Income attributable to STWD common stockholders | $ 339,213 | $ 871,475 | $ 447,739 |
Less: Income attributable to participating shares not already deducted as non-controlling interests | (6,412) | (17,113) | (6,808) |
Basic earnings | 332,801 | 854,362 | 440,931 |
Diluted Earnings | |||
Income attributable to STWD common stockholders | 339,213 | 871,475 | 447,739 |
Less: Income attributable to participating shares not already deducted as non-controlling interests | (6,412) | (17,113) | (6,808) |
Add: Undistributed earnings to participating shares | 0 | 11,229 | 0 |
Less: Undistributed earnings reallocated to participating shares | 0 | (10,880) | 0 |
Diluted earnings | $ 332,801 | $ 866,343 | $ 452,550 |
Number of Shares: | |||
Basic - Average shares outstanding (in shares) | 309,771 | 305,524 | 285,942 |
Effect of dilutive securities - Contingently issuable shares (in shares) | 450 | 386 | 1,037 |
Effect of dilutive securities - Unvested non-participating shares (in shares) | 286 | 169 | 198 |
Diluted - Average shares outstanding (in shares) | 310,507 | 315,728 | 296,826 |
Earnings Per Share Attributable to STWD Common Stockholders: | |||
Basic (in dollars per share) | $ 1.07 | $ 2.80 | $ 1.54 |
Diluted (in dollars per share) | $ 1.07 | $ 2.74 | $ 1.52 |
Unamortized discount—Convertible Notes | |||
Diluted Earnings | |||
Add: Interest expense on Convertible Notes | $ 11,632 | $ 11,619 | |
Number of Shares: | |||
Effect of dilutive securities - Convertible Notes (in shares) | 9,649 | 9,649 |
Earnings per Share - Narrative
Earnings per Share - Narrative (Details) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Class A Units | |||
Antidilutive securities and effect of dilutive securities | |||
Number of anti-dilutive common shares excluded from the calculation of diluted income per share (in shares) | 9.7 | 9.8 | 9.8 |
Restricted stock | |||
Antidilutive securities and effect of dilutive securities | |||
Number of anti-dilutive common shares excluded from the calculation of diluted income per share (in shares) | 12.7 | 13.7 | 13 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income - Changes in AOCI (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Changes in AOCI by component | |||
Beginning balance | $ 6,835,917 | $ 6,433,892 | $ 4,862,576 |
OCI before reclassifications | (5,648) | (19,998) | (3,101) |
Amounts reclassified from AOCI | 45 | 0 | 61 |
Net period OCI | (5,603) | (19,998) | (3,040) |
Ending balance | 6,608,634 | 6,835,917 | 6,433,892 |
Cumulative Unrealized Gain (Loss) on Available-for- Sale Securities | |||
Changes in AOCI by component | |||
Beginning balance | 20,955 | 40,953 | 44,057 |
OCI before reclassifications | (5,648) | (19,998) | (3,101) |
Amounts reclassified from AOCI | 45 | 0 | (3) |
Net period OCI | (5,603) | (19,998) | (3,104) |
Ending balance | 15,352 | 20,955 | 40,953 |
Foreign Currency Translation | |||
Changes in AOCI by component | |||
Beginning balance | 0 | 0 | (64) |
OCI before reclassifications | 0 | 0 | 0 |
Amounts reclassified from AOCI | 0 | 0 | 64 |
Net period OCI | 0 | 0 | 64 |
Ending balance | 0 | 0 | 0 |
Accumulated Other Comprehensive Income | |||
Changes in AOCI by component | |||
Beginning balance | 20,955 | 40,953 | 43,993 |
Ending balance | $ 15,352 | $ 20,955 | $ 40,953 |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income - Reclassifications (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Accumulated Other Comprehensive Income | |||
Gain on sale of investments and other assets, net | $ 25,729 | $ 137,611 | $ 38,984 |
Interest realized upon collection | 76,524 | 65,058 | 45,168 |
Foreign currency adjustment | 60,834 | (96,956) | (36,292) |
Total reclassifications for the period | 418,157 | 1,059,061 | 492,426 |
Reclassification out of Accumulated Other Comprehensive Income | |||
Accumulated Other Comprehensive Income | |||
Total reclassifications for the period | (45) | 0 | (61) |
Unrealized (loss) gain on available-for-sale securities: | Reclassification out of Accumulated Other Comprehensive Income | |||
Accumulated Other Comprehensive Income | |||
Gain on sale of investments and other assets, net | (45) | 0 | 0 |
Interest realized upon collection | 0 | 0 | 3 |
Total reclassifications for the period | (45) | 0 | 3 |
Foreign Currency Translation | Reclassification out of Accumulated Other Comprehensive Income | |||
Accumulated Other Comprehensive Income | |||
Foreign currency adjustment | $ 0 | $ 0 | $ (64) |
Fair Value - Narrative (Details
Fair Value - Narrative (Details) | Nov. 05, 2021 |
Woodstar Fund | |
Assets and liabilities measured at fair value | |
Term including extensions | 10 years |
Fair Value - Financial Assets a
Fair Value - Financial Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Financial Assets: | ||
Available-for-sale securities | $ 102,368 | $ 113,386 |
Woodstar Fund investments | 1,761,002 | |
Domestic servicing rights | 19,384 | 17,790 |
Derivative assets | 63,437 | 108,621 |
VIE assets | 69,504,196 | 79,043,129 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Derivative liabilities | 102,467 | 91,404 |
VIE liabilities | 62,481,214 | 71,844,422 |
Primary beneficiary | ||
Financial Assets: | ||
Woodstar Fund investments | 2,012,833 | 1,761,002 |
VIE assets | 47,800 | |
Liabilities, Fair Value Disclosure [Abstract] | ||
VIE liabilities | 10,300 | |
Fair value measurements on recurring basis | ||
Financial Assets: | ||
Equity security | 8,340 | 9,840 |
Derivative assets | 63,437 | 108,621 |
Total | 48,656,955 | 57,267,382 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Derivative liabilities | 102,467 | 91,404 |
Total | 42,278,201 | 50,845,759 |
Fair value measurements on recurring basis | Loans under fair value option | ||
Financial Assets: | ||
Loans under fair value option | 2,645,637 | 2,784,594 |
Fair value measurements on recurring basis | RMBS | ||
Financial Assets: | ||
Available-for-sale securities | 102,368 | 113,386 |
Fair value measurements on recurring basis | CMBS | ||
Financial Assets: | ||
Available-for-sale securities | 18,600 | 19,108 |
Fair value measurements on recurring basis | Woodstar Fund investments | ||
Financial Assets: | ||
Woodstar Fund investments | 2,012,833 | 1,761,002 |
Fair value measurements on recurring basis | Domestic servicing rights, at fair value | ||
Financial Assets: | ||
Domestic servicing rights | 19,384 | 17,790 |
Fair value measurements on recurring basis | VIE assets | Primary beneficiary | ||
Financial Assets: | ||
VIE assets | 43,786,356 | 52,453,041 |
Fair value measurements on recurring basis | VIE liabilities | Primary beneficiary | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
VIE liabilities | 42,175,734 | 50,754,355 |
Fair value measurements on recurring basis | Level I | ||
Financial Assets: | ||
Equity security | 8,340 | 9,840 |
Derivative assets | 0 | 0 |
Total | 8,340 | 9,840 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Derivative liabilities | 0 | 0 |
Total | 0 | 0 |
Fair value measurements on recurring basis | Level I | Loans under fair value option | ||
Financial Assets: | ||
Loans under fair value option | 0 | 0 |
Fair value measurements on recurring basis | Level I | RMBS | ||
Financial Assets: | ||
Available-for-sale securities | 0 | 0 |
Fair value measurements on recurring basis | Level I | CMBS | ||
Financial Assets: | ||
Available-for-sale securities | 0 | 0 |
Fair value measurements on recurring basis | Level I | Woodstar Fund investments | ||
Financial Assets: | ||
Woodstar Fund investments | 0 | 0 |
Fair value measurements on recurring basis | Level I | Domestic servicing rights, at fair value | ||
Financial Assets: | ||
Domestic servicing rights | 0 | 0 |
Fair value measurements on recurring basis | Level I | VIE assets | Primary beneficiary | ||
Financial Assets: | ||
VIE assets | 0 | 0 |
Fair value measurements on recurring basis | Level I | VIE liabilities | Primary beneficiary | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
VIE liabilities | 0 | 0 |
Fair value measurements on recurring basis | Level II | ||
Financial Assets: | ||
Equity security | 0 | 0 |
Derivative assets | 63,437 | 108,621 |
Total | 63,437 | 108,621 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Derivative liabilities | 102,467 | 91,404 |
Total | 36,673,405 | 45,339,816 |
Fair value measurements on recurring basis | Level II | Loans under fair value option | ||
Financial Assets: | ||
Loans under fair value option | 0 | 0 |
Fair value measurements on recurring basis | Level II | RMBS | ||
Financial Assets: | ||
Available-for-sale securities | 0 | 0 |
Fair value measurements on recurring basis | Level II | CMBS | ||
Financial Assets: | ||
Available-for-sale securities | 0 | 0 |
Fair value measurements on recurring basis | Level II | Woodstar Fund investments | ||
Financial Assets: | ||
Woodstar Fund investments | 0 | 0 |
Fair value measurements on recurring basis | Level II | Domestic servicing rights, at fair value | ||
Financial Assets: | ||
Domestic servicing rights | 0 | 0 |
Fair value measurements on recurring basis | Level II | VIE assets | Primary beneficiary | ||
Financial Assets: | ||
VIE assets | 0 | 0 |
Fair value measurements on recurring basis | Level II | VIE liabilities | Primary beneficiary | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
VIE liabilities | 36,570,938 | 45,248,412 |
Fair value measurements on recurring basis | Level III | ||
Financial Assets: | ||
Equity security | 0 | 0 |
Derivative assets | 0 | 0 |
Total | 48,585,178 | 57,148,921 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Derivative liabilities | 0 | 0 |
Total | 5,604,796 | 5,505,943 |
Fair value measurements on recurring basis | Level III | Loans under fair value option | ||
Financial Assets: | ||
Loans under fair value option | 2,645,637 | 2,784,594 |
Fair value measurements on recurring basis | Level III | RMBS | ||
Financial Assets: | ||
Available-for-sale securities | 102,368 | 113,386 |
Fair value measurements on recurring basis | Level III | CMBS | ||
Financial Assets: | ||
Available-for-sale securities | 18,600 | 19,108 |
Fair value measurements on recurring basis | Level III | Woodstar Fund investments | ||
Financial Assets: | ||
Woodstar Fund investments | 2,012,833 | 1,761,002 |
Fair value measurements on recurring basis | Level III | Domestic servicing rights, at fair value | ||
Financial Assets: | ||
Domestic servicing rights | 19,384 | 17,790 |
Fair value measurements on recurring basis | Level III | VIE assets | Primary beneficiary | ||
Financial Assets: | ||
VIE assets | 43,786,356 | 52,453,041 |
Fair value measurements on recurring basis | Level III | VIE liabilities | Primary beneficiary | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
VIE liabilities | $ 5,604,796 | $ 5,505,943 |
Fair Value - Level III (Details
Fair Value - Level III (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Changes in financial assets classified as Level III | ||
Balance at the beginning of the period | $ 51,642,978 | $ 60,659,660 |
Total realized and unrealized gains (losses): | ||
Change in fair value / gain on sale | (7,988,828) | (10,144,645) |
Net accretion | $ 4,661 | $ 8,491 |
Fair Value, Asset, Recurring Basis, Unobservable Input Reconciliation, Asset, Gain (Loss), Statement of Other Comprehensive Income or Comprehensive Income [Extensible Enumeration] | Available-for-sale securities | Available-for-sale securities |
Included in OCI | $ (5,603) | $ (19,998) |
Purchases / Originations | 756,522 | 4,634,722 |
Sales | (711,558) | (3,678,671) |
Cash repayments / receipts | (807,911) | (240,677) |
Transfers into Level III | (2,241,323) | (1,592,639) |
Transfers out of Level III | 1,609,405 | 194,034 |
Consolidation of VIEs | 722,039 | 2,551,224 |
Deconsolidation of VIEs | (728,523) | |
Balance at the end of the period | 42,980,382 | 51,642,978 |
Amount of Unrealized Gains (Losses) Attributable to Assets Still Held [Abstract] | ||
Included in earnings | (8,059,346) | (10,158,108) |
Included in OCI | (5,638) | (19,592) |
Loans at Fair Value | ||
Changes in financial assets classified as Level III | ||
Balance at the beginning of the period | 2,784,594 | 2,936,025 |
Total realized and unrealized gains (losses): | ||
Change in fair value / gain on sale | 62,702 | (346,222) |
Net accretion | 0 | 0 |
Included in OCI | 0 | 0 |
Purchases / Originations | 756,522 | 4,634,722 |
Sales | (710,957) | (3,678,671) |
Cash repayments / receipts | (185,885) | (200,728) |
Transfers into Level III | 27 | (86,201) |
Transfers out of Level III | (61,366) | (474,331) |
Consolidation of VIEs | 0 | 0 |
Deconsolidation of VIEs | 0 | |
Balance at the end of the period | 2,645,637 | 2,784,594 |
Amount of Unrealized Gains (Losses) Attributable to Assets Still Held [Abstract] | ||
Included in earnings | 15,853 | (368,368) |
Included in OCI | 0 | 0 |
RMBS | ||
Changes in financial assets classified as Level III | ||
Balance at the beginning of the period | 113,386 | 143,980 |
Total realized and unrealized gains (losses): | ||
Change in fair value / gain on sale | 0 | 0 |
Net accretion | 4,661 | 8,491 |
Included in OCI | (5,603) | (19,998) |
Purchases / Originations | 0 | 0 |
Sales | (601) | 0 |
Cash repayments / receipts | (9,475) | (19,087) |
Transfers into Level III | 0 | 0 |
Transfers out of Level III | 0 | 0 |
Consolidation of VIEs | 0 | 0 |
Deconsolidation of VIEs | 0 | |
Balance at the end of the period | 102,368 | 113,386 |
Amount of Unrealized Gains (Losses) Attributable to Assets Still Held [Abstract] | ||
Included in earnings | 4,630 | 8,157 |
Included in OCI | (5,638) | (19,592) |
CMBS | ||
Changes in financial assets classified as Level III | ||
Balance at the beginning of the period | 19,108 | 22,244 |
Total realized and unrealized gains (losses): | ||
Change in fair value / gain on sale | 282 | (1,674) |
Net accretion | 0 | 0 |
Included in OCI | 0 | 0 |
Purchases / Originations | 0 | 0 |
Sales | 0 | 0 |
Cash repayments / receipts | (790) | (1,992) |
Transfers into Level III | 0 | 0 |
Transfers out of Level III | 0 | 0 |
Consolidation of VIEs | 0 | 0 |
Deconsolidation of VIEs | 530 | |
Balance at the end of the period | 18,600 | 19,108 |
Amount of Unrealized Gains (Losses) Attributable to Assets Still Held [Abstract] | ||
Included in earnings | 282 | (1,148) |
Included in OCI | 0 | 0 |
Woodstar Fund investments | ||
Changes in financial assets classified as Level III | ||
Balance at the beginning of the period | 1,761,002 | 1,040,309 |
Total realized and unrealized gains (losses): | ||
Change in fair value / gain on sale | 251,831 | 720,693 |
Net accretion | 0 | 0 |
Included in OCI | 0 | 0 |
Purchases / Originations | 0 | 0 |
Sales | 0 | 0 |
Cash repayments / receipts | 0 | 0 |
Transfers into Level III | 0 | 0 |
Transfers out of Level III | 0 | 0 |
Consolidation of VIEs | 0 | 0 |
Deconsolidation of VIEs | 0 | |
Balance at the end of the period | 2,012,833 | 1,761,002 |
Amount of Unrealized Gains (Losses) Attributable to Assets Still Held [Abstract] | ||
Included in earnings | 251,831 | 720,693 |
Included in OCI | 0 | 0 |
Domestic servicing rights, at fair value | ||
Changes in financial assets classified as Level III | ||
Balance at the beginning of the period | 17,790 | 16,780 |
Total realized and unrealized gains (losses): | ||
Change in fair value / gain on sale | 1,594 | 1,010 |
Net accretion | 0 | 0 |
Included in OCI | 0 | 0 |
Purchases / Originations | 0 | 0 |
Sales | 0 | 0 |
Cash repayments / receipts | 0 | 0 |
Transfers into Level III | 0 | 0 |
Transfers out of Level III | 0 | 0 |
Consolidation of VIEs | 0 | 0 |
Deconsolidation of VIEs | 0 | |
Balance at the end of the period | 19,384 | 17,790 |
Amount of Unrealized Gains (Losses) Attributable to Assets Still Held [Abstract] | ||
Included in earnings | 1,594 | 1,010 |
Included in OCI | 0 | 0 |
VIE assets | ||
Changes in financial assets classified as Level III | ||
Balance at the beginning of the period | 52,453,041 | 61,280,543 |
Total realized and unrealized gains (losses): | ||
Change in fair value / gain on sale | (8,790,373) | (12,458,814) |
Net accretion | 0 | 0 |
Included in OCI | 0 | 0 |
Purchases / Originations | 0 | 0 |
Sales | 0 | 0 |
Cash repayments / receipts | (598,351) | 0 |
Transfers into Level III | 0 | 0 |
Transfers out of Level III | 0 | 0 |
Consolidation of VIEs | 722,039 | 4,361,325 |
Deconsolidation of VIEs | (730,013) | |
Balance at the end of the period | 43,786,356 | 52,453,041 |
Amount of Unrealized Gains (Losses) Attributable to Assets Still Held [Abstract] | ||
Included in earnings | (8,818,672) | (12,458,814) |
Included in OCI | 0 | 0 |
VIE liabilities | ||
Changes in financial assets classified as Level III | ||
Balance at the beginning of the period | (5,505,943) | (4,780,221) |
Total realized and unrealized gains (losses): | ||
Change in fair value / gain on sale | 485,136 | 1,940,362 |
Net accretion | 0 | 0 |
Included in OCI | 0 | 0 |
Purchases / Originations | 0 | 0 |
Sales | 0 | 0 |
Cash repayments / receipts | (13,410) | (18,870) |
Transfers into Level III | (2,241,350) | (1,506,438) |
Transfers out of Level III | 1,670,771 | 668,365 |
Consolidation of VIEs | 0 | (1,810,101) |
Deconsolidation of VIEs | 960 | |
Balance at the end of the period | (5,604,796) | (5,505,943) |
Amount of Unrealized Gains (Losses) Attributable to Assets Still Held [Abstract] | ||
Included in earnings | 485,136 | 1,940,362 |
Included in OCI | $ 0 | $ 0 |
Fair Value - Financial Instrume
Fair Value - Financial Instruments Not Carried at Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Financial assets not carried at fair value: | ||
Loans held-for-investment | $ 17,574,249 | $ 18,401,439 |
HTM debt securities | 619,397 | 676,652 |
Carrying Value | ||
Financial assets not carried at fair value: | ||
Loans held-for-investment | 17,574,249 | 18,401,439 |
HTM debt securities | 606,254 | 673,470 |
Financial liabilities not carried at fair value: | ||
Secured financing agreements, CLOs and SASB | 17,552,979 | 18,177,756 |
Unsecured senior notes | 2,158,888 | 2,329,211 |
Fair Value | ||
Financial assets not carried at fair value: | ||
Loans held-for-investment | 17,483,058 | 18,215,072 |
HTM debt securities | 581,160 | 637,275 |
Financial liabilities not carried at fair value: | ||
Secured financing agreements, CLOs and SASB | 17,466,172 | 18,017,651 |
Unsecured senior notes | $ 2,128,835 | $ 2,199,135 |
Fair Value - Significant Unobse
Fair Value - Significant Unobservable Inputs (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | |
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
Available-for-sale securities | $ 102,368 | $ 113,386 |
Woodstar Fund investments | 1,761,002 | |
Domestic servicing rights | 19,384 | 17,790 |
VIE assets | 69,504,196 | 79,043,129 |
VIE liabilities | 62,481,214 | 71,844,422 |
Primary beneficiary | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
Woodstar Fund investments | 2,012,833 | 1,761,002 |
VIE assets | 47,800 | |
VIE liabilities | 10,300 | |
Fair value measurements on recurring basis | Loans under fair value option | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
Loans under fair value option | 2,645,637 | 2,784,594 |
Fair value measurements on recurring basis | RMBS | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
Available-for-sale securities | 102,368 | 113,386 |
Fair value measurements on recurring basis | CMBS | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
Available-for-sale securities | 18,600 | 19,108 |
Fair value measurements on recurring basis | Woodstar Fund investments | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
Woodstar Fund investments | 2,012,833 | 1,761,002 |
Fair value measurements on recurring basis | Domestic servicing rights, at fair value | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
Domestic servicing rights | 19,384 | 17,790 |
Fair value measurements on recurring basis | VIE assets | Primary beneficiary | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
VIE assets | 43,786,356 | 52,453,041 |
Fair value measurements on recurring basis | VIE liabilities | Primary beneficiary | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
VIE liabilities | 42,175,734 | 50,754,355 |
Fair value measurements on recurring basis | Level III | Loans under fair value option | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
Loans under fair value option | $ 2,645,637 | $ 2,784,594 |
Fair value measurements on recurring basis | Level III | Loans under fair value option | Minimum | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
Loans under fair value option, duration | 4 years 3 months 18 days | 5 years 3 months 18 days |
Fair value measurements on recurring basis | Level III | Loans under fair value option | Minimum | Debt yield | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
Loans under fair value option | 0.028 | 0.028 |
Fair value measurements on recurring basis | Level III | Loans under fair value option | Minimum | FICO score | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
Loans under fair value option | 585 | 585 |
Fair value measurements on recurring basis | Level III | Loans under fair value option | Minimum | LTV | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
Loans under fair value option | 0.05 | 0.04 |
Fair value measurements on recurring basis | Level III | Loans under fair value option | Minimum | Purchase price | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
Loans under fair value option | 0.800 | 0.800 |
Fair value measurements on recurring basis | Level III | Loans under fair value option | Maximum | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
Loans under fair value option, duration | 38 years 6 months | 39 years 6 months |
Fair value measurements on recurring basis | Level III | Loans under fair value option | Maximum | Debt yield | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
Loans under fair value option | 0.099 | 0.093 |
Fair value measurements on recurring basis | Level III | Loans under fair value option | Maximum | FICO score | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
Loans under fair value option | 900 | 900 |
Fair value measurements on recurring basis | Level III | Loans under fair value option | Maximum | LTV | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
Loans under fair value option | 1.40 | 0.92 |
Fair value measurements on recurring basis | Level III | Loans under fair value option | Maximum | Purchase price | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
Loans under fair value option | 1.086 | 1.086 |
Fair value measurements on recurring basis | Level III | Loans under fair value option | Weighted-average | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
Loans under fair value option, duration | 27 years 4 months 24 days | 28 years 7 months 6 days |
Fair value measurements on recurring basis | Level III | Loans under fair value option | Weighted-average | Debt yield | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
Loans under fair value option | 0.045 | 0.045 |
Fair value measurements on recurring basis | Level III | Loans under fair value option | Weighted-average | FICO score | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
Loans under fair value option | 749 | 749 |
Fair value measurements on recurring basis | Level III | Loans under fair value option | Weighted-average | LTV | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
Loans under fair value option | 0.68 | 0.67 |
Fair value measurements on recurring basis | Level III | Loans under fair value option | Weighted-average | Purchase price | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
Loans under fair value option | 1.014 | 1.014 |
Fair value measurements on recurring basis | Level III | RMBS | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
Available-for-sale securities | $ 102,368 | $ 113,386 |
Loss severity for specified percentage of portfolio (as a percent) | 5% | 10% |
Fair value measurements on recurring basis | Level III | RMBS | Minimum | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
Loss severity for specified percentage of portfolio (as a percent) | 45% | 45% |
Fair value measurements on recurring basis | Level III | RMBS | Minimum | Constant prepayment rate | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
Available-for-sale securities, measurement input | 0.029 | 0.028 |
Fair value measurements on recurring basis | Level III | RMBS | Minimum | Constant default rate | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
Available-for-sale securities, measurement input | 0.010 | 0.011 |
Fair value measurements on recurring basis | Level III | RMBS | Minimum | Loss severity | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
Available-for-sale securities, measurement input | 0 | 0 |
Fair value measurements on recurring basis | Level III | RMBS | Minimum | Delinquency rate | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
Available-for-sale securities, measurement input | 0.08 | 0.06 |
Fair value measurements on recurring basis | Level III | RMBS | Minimum | Servicer advances | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
Available-for-sale securities, measurement input | 0.30 | 0.31 |
Fair value measurements on recurring basis | Level III | RMBS | Minimum | Annual coupon deterioration | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
Available-for-sale securities, measurement input | 0 | 0 |
Fair value measurements on recurring basis | Level III | RMBS | Minimum | Putback amount per projected total collateral loss | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
Available-for-sale securities, measurement input | 0 | 0 |
Fair value measurements on recurring basis | Level III | RMBS | Maximum | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
Loss severity for specified percentage of portfolio (as a percent) | 80% | 80% |
Fair value measurements on recurring basis | Level III | RMBS | Maximum | Constant prepayment rate | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
Available-for-sale securities, measurement input | 0.096 | 0.120 |
Fair value measurements on recurring basis | Level III | RMBS | Maximum | Constant default rate | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
Available-for-sale securities, measurement input | 0.042 | 0.044 |
Fair value measurements on recurring basis | Level III | RMBS | Maximum | Loss severity | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
Available-for-sale securities, measurement input | 0.99 | 1.09 |
Fair value measurements on recurring basis | Level III | RMBS | Maximum | Delinquency rate | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
Available-for-sale securities, measurement input | 0.25 | 0.29 |
Fair value measurements on recurring basis | Level III | RMBS | Maximum | Servicer advances | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
Available-for-sale securities, measurement input | 0.78 | 0.777 |
Fair value measurements on recurring basis | Level III | RMBS | Maximum | Annual coupon deterioration | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
Available-for-sale securities, measurement input | 0.013 | 0.026 |
Fair value measurements on recurring basis | Level III | RMBS | Maximum | Putback amount per projected total collateral loss | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
Available-for-sale securities, measurement input | 0.08 | 0.08 |
Fair value measurements on recurring basis | Level III | RMBS | Weighted-average | Constant prepayment rate | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
Available-for-sale securities, measurement input | 0.052 | 0.055 |
Fair value measurements on recurring basis | Level III | RMBS | Weighted-average | Constant default rate | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
Available-for-sale securities, measurement input | 0.017 | 0.020 |
Fair value measurements on recurring basis | Level III | RMBS | Weighted-average | Loss severity | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
Available-for-sale securities, measurement input | 0.17 | 0.24 |
Fair value measurements on recurring basis | Level III | RMBS | Weighted-average | Delinquency rate | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
Available-for-sale securities, measurement input | 0.14 | 0.16 |
Fair value measurements on recurring basis | Level III | RMBS | Weighted-average | Servicer advances | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
Available-for-sale securities, measurement input | 0.51 | 0.53 |
Fair value measurements on recurring basis | Level III | RMBS | Weighted-average | Annual coupon deterioration | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
Available-for-sale securities, measurement input | 0.001 | 0.001 |
Fair value measurements on recurring basis | Level III | RMBS | Weighted-average | Putback amount per projected total collateral loss | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
Available-for-sale securities, measurement input | 0.005 | 0.005 |
Fair value measurements on recurring basis | Level III | CMBS | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
Available-for-sale securities | $ 18,600 | $ 19,108 |
Fair value measurements on recurring basis | Level III | CMBS | Minimum | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
CMBS, term | 0 years | 0 years |
Fair value measurements on recurring basis | Level III | CMBS | Minimum | Debt yield | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
Available-for-sale securities, measurement input | 0 | 0 |
Fair value measurements on recurring basis | Level III | CMBS | Maximum | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
CMBS, term | 6 years 8 months 12 days | 7 years 8 months 12 days |
Fair value measurements on recurring basis | Level III | CMBS | Maximum | Debt yield | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
Available-for-sale securities, measurement input | 5.401 | 1.175 |
Fair value measurements on recurring basis | Level III | CMBS | Weighted-average | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
CMBS, term | 2 years 4 months 24 days | 3 years |
Fair value measurements on recurring basis | Level III | CMBS | Weighted-average | Debt yield | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
Available-for-sale securities, measurement input | 0.106 | 0.101 |
Fair value measurements on recurring basis | Level III | Woodstar Fund investments | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
Woodstar Fund investments | $ 2,012,833 | $ 1,761,002 |
Fair value measurements on recurring basis | Level III | Woodstar Fund investments | Implied direct capitalization rate | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
Available-for-sale securities, measurement input | 0.0425 | 0.0420 |
Fair value measurements on recurring basis | Level III | Woodstar Fund investments | Minimum | Discount rate - properties | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
Available-for-sale securities, measurement input | 0.063 | 0.063 |
Fair value measurements on recurring basis | Level III | Woodstar Fund investments | Minimum | Discount rate - debt | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
Available-for-sale securities, measurement input | 0.030 | 0.056 |
Fair value measurements on recurring basis | Level III | Woodstar Fund investments | Minimum | Terminal capitalization rate | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
Available-for-sale securities, measurement input | 0.048 | 0.050 |
Fair value measurements on recurring basis | Level III | Woodstar Fund investments | Maximum | Discount rate - properties | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
Available-for-sale securities, measurement input | 0.070 | 0.068 |
Fair value measurements on recurring basis | Level III | Woodstar Fund investments | Maximum | Discount rate - debt | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
Available-for-sale securities, measurement input | 0.069 | 0.067 |
Fair value measurements on recurring basis | Level III | Woodstar Fund investments | Maximum | Terminal capitalization rate | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
Available-for-sale securities, measurement input | 0.055 | 0.055 |
Fair value measurements on recurring basis | Level III | Woodstar Fund investments | Weighted-average | Discount rate - properties | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
Available-for-sale securities, measurement input | 0.067 | 0.065 |
Fair value measurements on recurring basis | Level III | Woodstar Fund investments | Weighted-average | Discount rate - debt | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
Available-for-sale securities, measurement input | 0.054 | 0.061 |
Fair value measurements on recurring basis | Level III | Woodstar Fund investments | Weighted-average | Terminal capitalization rate | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
Available-for-sale securities, measurement input | 0.052 | 0.051 |
Fair value measurements on recurring basis | Level III | Woodstar Fund investments | Weighted-average | Implied direct capitalization rate | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
Available-for-sale securities, measurement input | 0.0425 | 0.0420 |
Fair value measurements on recurring basis | Level III | Domestic servicing rights, at fair value | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
Domestic servicing rights | $ 19,384 | $ 17,790 |
Fair value measurements on recurring basis | Level III | Domestic servicing rights, at fair value | Debt yield | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
Domestic servicing rights | 0.0850 | 0.0825 |
Fair value measurements on recurring basis | Level III | Domestic servicing rights, at fair value | Discount rate | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
Domestic servicing rights | 0.15 | 0.15 |
Fair value measurements on recurring basis | Level III | Domestic servicing rights, at fair value | Weighted-average | Debt yield | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
Domestic servicing rights | 0.0850 | 0.0825 |
Fair value measurements on recurring basis | Level III | Domestic servicing rights, at fair value | Weighted-average | Discount rate | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
Domestic servicing rights | 0.15 | 0.15 |
Fair value measurements on recurring basis | Level III | VIE assets | Minimum | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
VIE duration (in years) | 0 years | 0 years |
Fair value measurements on recurring basis | Level III | VIE assets | Minimum | Debt yield | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
VIE assets | 0 | 0 |
Fair value measurements on recurring basis | Level III | VIE assets | Maximum | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
VIE duration (in years) | 10 years | 11 years |
Fair value measurements on recurring basis | Level III | VIE assets | Maximum | Debt yield | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
VIE assets | 6.910 | 4.536 |
Fair value measurements on recurring basis | Level III | VIE assets | Weighted-average | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
VIE duration (in years) | 1 year 9 months 18 days | 2 years 4 months 24 days |
Fair value measurements on recurring basis | Level III | VIE assets | Weighted-average | Debt yield | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
VIE assets | 0.159 | 0.153 |
Fair value measurements on recurring basis | Level III | VIE assets | Primary beneficiary | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
VIE assets | $ 43,786,356 | $ 52,453,041 |
Fair value measurements on recurring basis | Level III | VIE liabilities | Minimum | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
VIE duration (in years) | 0 years | 0 years |
Fair value measurements on recurring basis | Level III | VIE liabilities | Minimum | Debt yield | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
VIE liabilities | 0 | 0 |
Fair value measurements on recurring basis | Level III | VIE liabilities | Maximum | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
VIE duration (in years) | 10 years | 11 years |
Fair value measurements on recurring basis | Level III | VIE liabilities | Maximum | Debt yield | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
VIE liabilities | 6.910 | 4.536 |
Fair value measurements on recurring basis | Level III | VIE liabilities | Weighted-average | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
VIE duration (in years) | 1 year 8 months 12 days | 1 year 9 months 18 days |
Fair value measurements on recurring basis | Level III | VIE liabilities | Weighted-average | Debt yield | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
VIE liabilities | 0.114 | 0.104 |
Fair value measurements on recurring basis | Level III | VIE liabilities | Primary beneficiary | ||
Quantitative information for Level 3 Fair Value Measurements for assets and liabilities measured at fair value on recurring basis | ||
VIE liabilities | $ 5,604,796 | $ 5,505,943 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Taxes | |||
VIE assets | $ 69,504,196,000 | $ 79,043,129,000 | |
Pre-tax income from foreign operations | 0 | 0 | $ 0 |
Valuation allowance changes | 0 | 0 | $ 0 |
Domestic Tax Authority | |||
Income Taxes | |||
Net operating loss carryforward | 252,800,000 | ||
State and Local Jurisdiction | |||
Income Taxes | |||
Additional operating loss carryforwards | 6,200,000 | ||
Investing and Servicing Segment | TRS entities | |||
Income Taxes | |||
VIE assets | $ 3,100,000,000 | $ 3,200,000,000 |
Income Taxes - Income Tax (Bene
Income Taxes - Income Tax (Benefit) Provision (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Current | |||
Federal | $ 554 | $ 1,446 | $ 142 |
State | (31) | 705 | (80) |
Foreign | 0 | 0 | (392) |
Total current | 523 | 2,151 | (330) |
Deferred | |||
Federal | 98 | (47,128) | 6,893 |
State | (1,303) | (16,546) | 2,106 |
Total deferred | (1,205) | (63,674) | 8,999 |
Total income tax (benefit) provision | $ (682) | $ (61,523) | $ 8,669 |
Income Taxes - Temporary Differ
Income Taxes - Temporary Differences on Deferred Tax Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Income Tax Disclosure [Abstract] | ||
Reserves and accruals | $ 3,636 | $ 3,314 |
Domestic intangible assets | (22,890) | (15,946) |
Investments in unconsolidated entities | (984) | |
Investments in unconsolidated entities | 782 | |
Net operating loss and interest expense carryforwards | 78,979 | 69,294 |
Other U.S. temporary differences | 47 | 140 |
Net deferred tax assets | $ 58,788 | $ 57,584 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Tax Rate (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Reconciliation of statutory tax to effective tax | |||
Federal statutory tax rate | $ 87,670 | $ 209,483 | $ 105,230 |
REIT and other non-taxable income | (88,281) | (256,105) | (92,121) |
State income taxes | (201) | (15,319) | 4,307 |
Federal benefit of state tax deduction | 42 | 3,217 | (905) |
Intra-entity transfers | 0 | (4,327) | (6,635) |
Other | 88 | 1,528 | (1,207) |
Total income tax (benefit) provision | $ (682) | $ (61,523) | $ 8,669 |
Reconciliation of statutory tax rate to effective tax rate | |||
Federal statutory tax rate | 21% | 21% | 21% |
REIT and other non-taxable income | (21.20%) | (25.70%) | (18.40%) |
State income taxes | 0% | (1.50%) | 0.90% |
Federal benefit of state tax deduction | 0% | 0.30% | (0.20%) |
Intra-entity transfers | 0% | (0.40%) | (1.30%) |
Other | 0% | 0.10% | (0.30%) |
Effective tax rate | (0.20%) | (6.20%) | 1.70% |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Loan Funding Commitments | Commercial and Residential Lending Segment | |
Commitments and Contingencies | |
Value of loans with future funding commitments | $ 1,700 |
Value of loans with future funding commitments expected to fund | 1,300 |
Loan Funding Commitments | Infrastructure Lending Segment | |
Commitments and Contingencies | |
Value of loans with future funding commitments | 189.9 |
Revolvers and Letters of Credit | Infrastructure Lending Segment | |
Commitments and Contingencies | |
Value of loans with future funding commitments | 124.4 |
Debt related to properties held-for-sale | 5.2 |
Delayed Draw Term Loans | Infrastructure Lending Segment | |
Commitments and Contingencies | |
Value of loans with future funding commitments | 65.5 |
Loan Purchase Commitments | Infrastructure Lending Segment | |
Commitments and Contingencies | |
Debt related to properties held-for-sale | $ 37.6 |
Commitments and Contingencies_2
Commitments and Contingencies - Lease Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Operating lease costs | $ 6,864 | $ 4,646 | $ 4,100 |
Short-term lease costs | 75 | 44 | 2,227 |
Sublease income | 0 | 0 | (766) |
Total lease cost | 6,940 | 4,690 | $ 5,560 |
Cash paid for amounts included in the measurement of lease liabilities —operating | $ 5,025 | $ 2,129 | |
Weighted-average remaining lease term | 12 years | 13 years | |
Weighted-average discount rate | 8.80% | 8.70% |
Commitments and Contingencies_3
Commitments and Contingencies - Future Maturity of Operating Leases (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2024 | $ 5,145 |
2025 | 5,320 |
2026 | 5,275 |
2027 | 4,829 |
2028 | 4,868 |
Thereafter | 41,543 |
Total | 66,980 |
Less interest component | (29,325) |
Operating lease liability | $ 37,655 |
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Accounts payable, accrued expenses and other liabilities |
Segment and Geographic Data - R
Segment and Geographic Data - Results of Operations (Details) - USD ($) $ in Thousands | 2 Months Ended | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenues: | ||||
Interest income from loans | $ 1,804,104 | $ 1,218,521 | $ 800,291 | |
Interest income from investment securities | 76,524 | 65,058 | 45,168 | |
Servicing fees | 33,121 | 40,359 | 38,739 | |
Rental income | 127,666 | 128,263 | 278,831 | |
Other revenues | 8,493 | 12,515 | 7,059 | |
Total revenues | 2,049,908 | 1,464,716 | 1,170,088 | |
Costs and expenses: | ||||
Management fees | 141,543 | 155,551 | 167,773 | |
Interest expense | 1,436,107 | 797,121 | 445,087 | |
General and administrative | 180,212 | 175,500 | 171,302 | |
Acquisition and investment pursuit costs | 925 | 3,400 | 1,184 | |
Costs of rental operations | 44,842 | 44,115 | 111,667 | |
Depreciation and amortization | 49,141 | 49,293 | 83,001 | |
Credit loss provision, net | 243,728 | 46,657 | 8,335 | |
Other expense | 1,820 | 1,314 | 708 | |
Total costs and expenses | 2,098,318 | 1,272,951 | 989,057 | |
Other income (loss): | ||||
Change in net assets related to consolidated VIEs | 181,688 | 124,001 | 162,333 | |
Change in fair value of servicing rights | 1,594 | 1,010 | 3,578 | |
Change in fair value of investment securities, net | 767 | (2,204) | (387) | |
Change in fair value of mortgage loans, net | 62,702 | (346,222) | 69,050 | |
Income from affordable housing fund investments | 755,736 | |||
Earnings (loss) from unconsolidated entities | 16,722 | (6,323) | 8,752 | |
Gain on sale of investments and other assets, net | 25,729 | 137,611 | 38,984 | |
(Loss) gain on derivative financial instruments, net | (38,605) | 334,015 | 82,363 | |
Foreign currency gain (loss), net | 60,834 | (96,956) | (36,292) | |
Loss on extinguishment of debt | (1,238) | (1,185) | (7,428) | |
Other loss, net | (135,552) | (93,710) | (7,314) | |
Total other income | 465,885 | 805,773 | 320,064 | |
Income before income taxes | 417,475 | 997,538 | 501,095 | |
Income tax benefit (provision) | 682 | 61,523 | (8,669) | |
Net income | 418,157 | 1,059,061 | 492,426 | |
Net income attributable to non-controlling interests | (78,944) | (187,586) | (44,687) | |
Net income attributable to Starwood Property Trust, Inc. | 339,213 | 871,475 | 447,739 | |
Primary beneficiary | ||||
Other income (loss): | ||||
Income from affordable housing fund investments | $ 6,425 | 291,244 | 755,736 | 6,425 |
Subtotal | ||||
Revenues: | ||||
Interest income from loans | 1,804,104 | 1,218,521 | 800,291 | |
Interest income from investment securities | 229,082 | 204,849 | 166,550 | |
Servicing fees | 45,448 | 55,394 | 59,349 | |
Rental income | 127,666 | 128,263 | 278,831 | |
Other revenues | 8,493 | 12,527 | 7,063 | |
Total revenues | 2,214,793 | 1,619,554 | 1,312,084 | |
Costs and expenses: | ||||
Management fees | 141,543 | 155,551 | 167,749 | |
Interest expense | 1,436,953 | 797,984 | 445,939 | |
General and administrative | 180,212 | 175,212 | 170,975 | |
Acquisition and investment pursuit costs | 925 | 3,400 | 1,184 | |
Costs of rental operations | 44,842 | 44,115 | 111,667 | |
Depreciation and amortization | 49,141 | 49,293 | 83,001 | |
Credit loss provision, net | 243,728 | 46,657 | 8,335 | |
Other expense | 1,820 | 1,314 | 708 | |
Total costs and expenses | 2,099,164 | 1,273,526 | 989,558 | |
Other income (loss): | ||||
Change in net assets related to consolidated VIEs | 0 | 0 | 0 | |
Change in fair value of servicing rights | 401 | (2,051) | 4,319 | |
Change in fair value of investment securities, net | 17,370 | (31,361) | 19,944 | |
Change in fair value of mortgage loans, net | 62,702 | (346,222) | 69,050 | |
Income from affordable housing fund investments | 755,736 | |||
Earnings (loss) from unconsolidated entities | 18,961 | (4,389) | 8,959 | |
Gain on sale of investments and other assets, net | 25,729 | 137,611 | 38,984 | |
(Loss) gain on derivative financial instruments, net | (38,605) | 334,015 | 82,363 | |
Foreign currency gain (loss), net | 60,834 | (96,956) | (36,292) | |
Loss on extinguishment of debt | (1,238) | (1,185) | (7,428) | |
Other loss, net | (135,552) | (93,735) | (7,314) | |
Total other income | 301,846 | 651,463 | 179,010 | |
Income before income taxes | 417,475 | 997,491 | 501,536 | |
Income tax benefit (provision) | 682 | 61,523 | (8,669) | |
Net income | 418,157 | 1,059,014 | 492,867 | |
Net income attributable to non-controlling interests | (78,944) | (187,539) | (45,128) | |
Net income attributable to Starwood Property Trust, Inc. | 339,213 | 871,475 | 447,739 | |
Subtotal | Primary beneficiary | ||||
Other income (loss): | ||||
Income from affordable housing fund investments | 291,244 | 6,425 | ||
Operating segment | Commercial and Residential Lending Segment | ||||
Revenues: | ||||
Interest income from loans | 1,557,631 | 1,058,326 | 705,499 | |
Interest income from investment securities | 135,130 | 102,125 | 67,589 | |
Servicing fees | 553 | 558 | 453 | |
Rental income | 8,369 | 6,467 | 5,486 | |
Other revenues | 2,527 | 504 | 294 | |
Total revenues | 1,704,210 | 1,167,980 | 779,321 | |
Costs and expenses: | ||||
Management fees | 496 | 592 | 948 | |
Interest expense | 971,028 | 501,126 | 206,353 | |
General and administrative | 55,782 | 52,701 | 42,000 | |
Acquisition and investment pursuit costs | 1,128 | 3,634 | 893 | |
Costs of rental operations | 8,777 | 7,833 | 1,769 | |
Depreciation and amortization | 7,206 | 4,720 | 1,243 | |
Credit loss provision, net | 225,720 | 39,780 | (3,560) | |
Other expense | 1,730 | 1,251 | 31 | |
Total costs and expenses | 1,271,867 | 611,637 | 249,677 | |
Other income (loss): | ||||
Change in net assets related to consolidated VIEs | 0 | 0 | 0 | |
Change in fair value of servicing rights | 0 | 0 | 0 | |
Change in fair value of investment securities, net | 69,259 | 11,818 | (8,277) | |
Change in fair value of mortgage loans, net | 25,874 | (352,412) | 13,836 | |
Income from affordable housing fund investments | 0 | |||
Earnings (loss) from unconsolidated entities | 4,410 | (11,242) | 6,984 | |
Gain on sale of investments and other assets, net | (112) | 86,532 | 16,584 | |
(Loss) gain on derivative financial instruments, net | (25,206) | 338,994 | 73,209 | |
Foreign currency gain (loss), net | 60,644 | (96,651) | (36,045) | |
Loss on extinguishment of debt | (804) | (209) | (289) | |
Other loss, net | (135,576) | (92,632) | (7,407) | |
Total other income | (1,511) | (115,802) | 58,595 | |
Income before income taxes | 430,832 | 440,541 | 588,239 | |
Income tax benefit (provision) | 990 | 69,199 | (1,201) | |
Net income | 431,822 | 509,740 | 587,038 | |
Net income attributable to non-controlling interests | (14) | (14) | (14) | |
Net income attributable to Starwood Property Trust, Inc. | 431,808 | 509,726 | 587,024 | |
Operating segment | Commercial and Residential Lending Segment | Primary beneficiary | ||||
Other income (loss): | ||||
Income from affordable housing fund investments | 0 | 0 | ||
Operating segment | Infrastructure Lending Segment | ||||
Revenues: | ||||
Interest income from loans | 236,884 | 150,230 | 85,057 | |
Interest income from investment securities | 1,805 | 3,681 | 2,190 | |
Servicing fees | 0 | 0 | 0 | |
Rental income | 0 | 0 | 0 | |
Other revenues | 1,296 | 451 | 293 | |
Total revenues | 239,985 | 154,362 | 87,540 | |
Costs and expenses: | ||||
Management fees | 0 | 0 | 0 | |
Interest expense | 141,016 | 79,137 | 37,671 | |
General and administrative | 15,569 | 14,187 | 14,557 | |
Acquisition and investment pursuit costs | 17 | 3 | 250 | |
Costs of rental operations | 0 | 0 | 0 | |
Depreciation and amortization | 103 | 387 | 402 | |
Credit loss provision, net | 18,008 | 6,877 | 11,895 | |
Other expense | 0 | 0 | 0 | |
Total costs and expenses | 174,713 | 100,591 | 64,775 | |
Other income (loss): | ||||
Change in net assets related to consolidated VIEs | 0 | 0 | 0 | |
Change in fair value of servicing rights | 0 | 0 | 0 | |
Change in fair value of investment securities, net | 0 | 0 | 0 | |
Change in fair value of mortgage loans, net | 0 | 0 | 0 | |
Income from affordable housing fund investments | 0 | |||
Earnings (loss) from unconsolidated entities | 5,702 | 3,982 | 1,160 | |
Gain on sale of investments and other assets, net | 0 | 0 | 189 | |
(Loss) gain on derivative financial instruments, net | 123 | 1,235 | 1,253 | |
Foreign currency gain (loss), net | 201 | (317) | (183) | |
Loss on extinguishment of debt | 0 | (469) | (1,264) | |
Other loss, net | 0 | 0 | 23 | |
Total other income | 6,026 | 4,431 | 1,178 | |
Income before income taxes | 71,298 | 58,202 | 23,943 | |
Income tax benefit (provision) | 590 | 12 | 306 | |
Net income | 71,888 | 58,214 | 24,249 | |
Net income attributable to non-controlling interests | 0 | 0 | 0 | |
Net income attributable to Starwood Property Trust, Inc. | 71,888 | 58,214 | 24,249 | |
Operating segment | Infrastructure Lending Segment | Primary beneficiary | ||||
Other income (loss): | ||||
Income from affordable housing fund investments | 0 | 0 | ||
Operating segment | Property Segment | ||||
Revenues: | ||||
Interest income from loans | 0 | 0 | 0 | |
Interest income from investment securities | 0 | 0 | 0 | |
Servicing fees | 0 | 0 | 0 | |
Rental income | 93,459 | 91,587 | 234,840 | |
Other revenues | 713 | 245 | 198 | |
Total revenues | 94,172 | 91,832 | 235,038 | |
Costs and expenses: | ||||
Management fees | 0 | 0 | 0 | |
Interest expense | 54,522 | 33,938 | 59,970 | |
General and administrative | 4,155 | 4,069 | 8,067 | |
Acquisition and investment pursuit costs | (5) | 7 | (60) | |
Costs of rental operations | 22,806 | 21,868 | 92,190 | |
Depreciation and amortization | 31,960 | 32,714 | 65,833 | |
Credit loss provision, net | 0 | 0 | 0 | |
Other expense | 23 | 55 | 583 | |
Total costs and expenses | 113,461 | 92,651 | 226,583 | |
Other income (loss): | ||||
Change in net assets related to consolidated VIEs | 0 | 0 | 0 | |
Change in fair value of servicing rights | 0 | 0 | 0 | |
Change in fair value of investment securities, net | 0 | 0 | 0 | |
Change in fair value of mortgage loans, net | 0 | 0 | 0 | |
Income from affordable housing fund investments | 755,736 | |||
Earnings (loss) from unconsolidated entities | 0 | 0 | 0 | |
Gain on sale of investments and other assets, net | 0 | 0 | 0 | |
(Loss) gain on derivative financial instruments, net | 2,111 | 35,081 | 10,155 | |
Foreign currency gain (loss), net | (11) | 12 | 0 | |
Loss on extinguishment of debt | 0 | 0 | (5,281) | |
Other loss, net | (5) | (1,103) | 0 | |
Total other income | 293,339 | 789,726 | 11,299 | |
Income before income taxes | 274,050 | 788,907 | 19,754 | |
Income tax benefit (provision) | 0 | 0 | 0 | |
Net income | 274,050 | 788,907 | 19,754 | |
Net income attributable to non-controlling interests | (77,156) | (172,598) | (20,121) | |
Net income attributable to Starwood Property Trust, Inc. | 196,894 | 616,309 | (367) | |
Operating segment | Property Segment | Primary beneficiary | ||||
Other income (loss): | ||||
Income from affordable housing fund investments | 291,244 | 6,425 | ||
Operating segment | Investing and Servicing Segment | ||||
Revenues: | ||||
Interest income from loans | 9,589 | 9,965 | 9,735 | |
Interest income from investment securities | 92,147 | 99,043 | 96,771 | |
Servicing fees | 44,895 | 54,836 | 58,896 | |
Rental income | 25,838 | 30,209 | 38,505 | |
Other revenues | 2,335 | 11,258 | 6,278 | |
Total revenues | 174,804 | 205,311 | 210,185 | |
Costs and expenses: | ||||
Management fees | 0 | 0 | (793) | |
Interest expense | 34,611 | 26,686 | 22,543 | |
General and administrative | 87,619 | 85,478 | 88,879 | |
Acquisition and investment pursuit costs | (215) | (244) | 101 | |
Costs of rental operations | 13,259 | 14,414 | 17,708 | |
Depreciation and amortization | 9,788 | 11,472 | 15,523 | |
Credit loss provision, net | 0 | 0 | 0 | |
Other expense | 67 | 8 | 94 | |
Total costs and expenses | 145,129 | 137,814 | 144,055 | |
Other income (loss): | ||||
Change in net assets related to consolidated VIEs | 0 | 0 | 0 | |
Change in fair value of servicing rights | 401 | (2,051) | 4,319 | |
Change in fair value of investment securities, net | (51,889) | (43,179) | 28,221 | |
Change in fair value of mortgage loans, net | 36,828 | 6,190 | 55,214 | |
Income from affordable housing fund investments | 0 | |||
Earnings (loss) from unconsolidated entities | 8,849 | 2,871 | 815 | |
Gain on sale of investments and other assets, net | 25,841 | 51,079 | 22,211 | |
(Loss) gain on derivative financial instruments, net | (4,348) | 41,692 | 8,288 | |
Foreign currency gain (loss), net | 0 | 0 | (64) | |
Loss on extinguishment of debt | (434) | (507) | (113) | |
Other loss, net | 29 | 0 | 70 | |
Total other income | 15,277 | 56,095 | 118,961 | |
Income before income taxes | 44,952 | 123,592 | 185,091 | |
Income tax benefit (provision) | (898) | (7,688) | (7,775) | |
Net income | 44,054 | 115,904 | 177,316 | |
Net income attributable to non-controlling interests | (1,774) | (14,927) | (24,993) | |
Net income attributable to Starwood Property Trust, Inc. | 42,280 | 100,977 | 152,323 | |
Operating segment | Investing and Servicing Segment | Primary beneficiary | ||||
Other income (loss): | ||||
Income from affordable housing fund investments | 0 | 0 | ||
Corporate | ||||
Revenues: | ||||
Interest income from loans | 0 | 0 | 0 | |
Interest income from investment securities | 0 | 0 | 0 | |
Servicing fees | 0 | 0 | 0 | |
Rental income | 0 | 0 | 0 | |
Other revenues | 1,622 | 69 | 0 | |
Total revenues | 1,622 | 69 | 0 | |
Costs and expenses: | ||||
Management fees | 141,047 | 154,959 | 167,594 | |
Interest expense | 235,776 | 157,097 | 119,402 | |
General and administrative | 17,087 | 18,777 | 17,472 | |
Acquisition and investment pursuit costs | 0 | 0 | 0 | |
Costs of rental operations | 0 | 0 | 0 | |
Depreciation and amortization | 84 | 0 | 0 | |
Credit loss provision, net | 0 | 0 | 0 | |
Other expense | 0 | 0 | 0 | |
Total costs and expenses | 393,994 | 330,833 | 304,468 | |
Other income (loss): | ||||
Change in net assets related to consolidated VIEs | 0 | 0 | 0 | |
Change in fair value of servicing rights | 0 | 0 | 0 | |
Change in fair value of investment securities, net | 0 | 0 | 0 | |
Change in fair value of mortgage loans, net | 0 | 0 | 0 | |
Income from affordable housing fund investments | 0 | |||
Earnings (loss) from unconsolidated entities | 0 | 0 | 0 | |
Gain on sale of investments and other assets, net | 0 | 0 | 0 | |
(Loss) gain on derivative financial instruments, net | (11,285) | (82,987) | (10,542) | |
Foreign currency gain (loss), net | 0 | 0 | 0 | |
Loss on extinguishment of debt | 0 | 0 | (481) | |
Other loss, net | 0 | 0 | 0 | |
Total other income | (11,285) | (82,987) | (11,023) | |
Income before income taxes | (403,657) | (413,751) | (315,491) | |
Income tax benefit (provision) | 0 | 0 | 1 | |
Net income | (403,657) | (413,751) | (315,490) | |
Net income attributable to non-controlling interests | 0 | 0 | 0 | |
Net income attributable to Starwood Property Trust, Inc. | (403,657) | (413,751) | (315,490) | |
Corporate | Primary beneficiary | ||||
Other income (loss): | ||||
Income from affordable housing fund investments | 0 | 0 | ||
Securitization VIEs | ||||
Revenues: | ||||
Interest income from loans | 0 | 0 | 0 | |
Interest income from investment securities | (152,558) | (139,791) | (121,382) | |
Servicing fees | (12,327) | (15,035) | (20,610) | |
Rental income | 0 | 0 | 0 | |
Other revenues | 0 | (12) | (4) | |
Total revenues | (164,885) | (154,838) | (141,996) | |
Costs and expenses: | ||||
Management fees | 0 | 0 | 24 | |
Interest expense | (846) | (863) | (852) | |
General and administrative | 0 | 288 | 327 | |
Acquisition and investment pursuit costs | 0 | 0 | 0 | |
Costs of rental operations | 0 | 0 | 0 | |
Depreciation and amortization | 0 | 0 | 0 | |
Credit loss provision, net | 0 | 0 | 0 | |
Other expense | 0 | 0 | 0 | |
Total costs and expenses | (846) | (575) | (501) | |
Other income (loss): | ||||
Change in net assets related to consolidated VIEs | 181,688 | 124,001 | 162,333 | |
Change in fair value of servicing rights | 1,193 | 3,061 | (741) | |
Change in fair value of investment securities, net | (16,603) | 29,157 | (20,331) | |
Change in fair value of mortgage loans, net | 0 | 0 | 0 | |
Income from affordable housing fund investments | 0 | |||
Earnings (loss) from unconsolidated entities | (2,239) | (1,934) | (207) | |
Gain on sale of investments and other assets, net | 0 | 0 | 0 | |
(Loss) gain on derivative financial instruments, net | 0 | 0 | 0 | |
Foreign currency gain (loss), net | 0 | 0 | 0 | |
Loss on extinguishment of debt | 0 | 0 | 0 | |
Other loss, net | 0 | 25 | 0 | |
Total other income | 164,039 | 154,310 | 141,054 | |
Income before income taxes | 0 | 47 | (441) | |
Income tax benefit (provision) | 0 | 0 | 0 | |
Net income | 0 | 47 | (441) | |
Net income attributable to non-controlling interests | 0 | (47) | 441 | |
Net income attributable to Starwood Property Trust, Inc. | 0 | $ 0 | 0 | |
Securitization VIEs | Primary beneficiary | ||||
Other income (loss): | ||||
Income from affordable housing fund investments | $ 0 | $ 0 |
Segment and Geographic Data - B
Segment and Geographic Data - Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Assets: | ||||
Cash and cash equivalents | $ 194,660 | $ 261,061 | ||
Restricted cash | 117,312 | 121,072 | ||
Loans held-for-investment, net | 17,574,249 | 18,401,439 | ||
Loans held-for-sale | 2,645,637 | 2,784,594 | ||
Investment securities | 735,562 | 815,804 | ||
Properties, net | 1,046,384 | 1,449,986 | ||
Properties held-for-sale | 290,937 | 0 | ||
Investments of consolidated affordable housing fund | 1,761,002 | |||
Investments in unconsolidated entities | 90,376 | 91,892 | ||
Goodwill | 259,846 | 259,846 | ||
Intangible assets | 64,967 | 68,773 | $ 63,564 | |
Derivative assets | 63,437 | 108,621 | ||
Accrued interest receivable | 200,867 | 168,521 | ||
Other assets | 420,773 | 297,477 | ||
VIE assets, at fair value | 43,786,356 | 52,453,041 | ||
Total Assets | 69,504,196 | 79,043,129 | ||
Liabilities: | ||||
Dividends payable | 152,888 | 151,511 | ||
Derivative liabilities | 102,467 | 91,404 | ||
Secured financing agreements, net | 13,867,996 | 14,501,532 | ||
Collateralized loan obligations and single asset securitization, net | 3,491,292 | 3,676,224 | ||
Unsecured senior notes, net | 2,158,888 | 2,329,211 | ||
Debt related to properties held-for-sale | 193,691 | 0 | ||
VIE liabilities, at fair value | 42,175,734 | 50,754,355 | ||
Total Liabilities | 62,481,214 | 71,844,422 | ||
Temporary Equity: Redeemable non-controlling interests | 414,348 | 362,790 | ||
Starwood Property Trust, Inc. Stockholders’ Equity: | ||||
Common stock | 3,208 | 3,181 | ||
Additional paid-in capital | 5,864,670 | 5,807,087 | ||
Treasury stock | (138,022) | (138,022) | ||
Retained earnings (accumulated deficit) | 505,881 | 769,237 | ||
Accumulated other comprehensive income | 15,352 | 20,955 | ||
Total Starwood Property Trust, Inc. Stockholders’ Equity | 6,251,089 | 6,462,438 | ||
Non-controlling interests in consolidated subsidiaries | 357,545 | 373,479 | ||
Total Permanent Equity | 6,608,634 | 6,835,917 | $ 6,433,892 | $ 4,862,576 |
Total Liabilities and Equity | 69,504,196 | 79,043,129 | ||
Nonrelated Party | ||||
Liabilities: | ||||
Accounts payable, accrued expenses and other liabilities | 293,442 | 298,999 | ||
Related Party | ||||
Liabilities: | ||||
Accounts payable, accrued expenses and other liabilities | 44,816 | 41,186 | ||
Primary beneficiary | ||||
Assets: | ||||
Investments of consolidated affordable housing fund | 2,012,833 | 1,761,002 | ||
Total Assets | 47,800 | |||
Liabilities: | ||||
Total Liabilities | 10,300 | |||
Infrastructure Lending Segment | ||||
Assets: | ||||
Goodwill | 119,400 | 119,400 | ||
Investing and Servicing Segment | ||||
Assets: | ||||
Goodwill | 140,400 | 140,400 | ||
Subtotal | ||||
Assets: | ||||
Cash and cash equivalents | 194,660 | 261,061 | ||
Restricted cash | 117,312 | 121,072 | ||
Loans held-for-investment, net | 17,574,249 | 18,401,439 | ||
Loans held-for-sale | 2,645,637 | 2,784,594 | ||
Investment securities | 2,314,421 | 2,482,725 | ||
Properties, net | 1,046,384 | 1,449,986 | ||
Properties held-for-sale | 290,937 | |||
Investments of consolidated affordable housing fund | 1,761,002 | |||
Investments in unconsolidated entities | 104,976 | 105,434 | ||
Goodwill | 259,846 | 259,846 | ||
Intangible assets | 102,832 | 107,831 | ||
Derivative assets | 63,437 | 108,621 | ||
Accrued interest receivable | 200,867 | 168,796 | ||
Other assets | 420,773 | 297,477 | ||
VIE assets, at fair value | 0 | 0 | ||
Total Assets | 27,349,164 | 28,309,884 | ||
Liabilities: | ||||
Dividends payable | 152,888 | 151,511 | ||
Derivative liabilities | 102,467 | 91,404 | ||
Secured financing agreements, net | 13,888,753 | 14,522,698 | ||
Collateralized loan obligations and single asset securitization, net | 3,491,292 | 3,676,224 | ||
Unsecured senior notes, net | 2,158,888 | 2,329,211 | ||
Debt related to properties held-for-sale | 193,691 | |||
VIE liabilities, at fair value | 0 | 0 | ||
Total Liabilities | 20,326,237 | 21,111,233 | ||
Temporary Equity: Redeemable non-controlling interests | 414,348 | 362,790 | ||
Starwood Property Trust, Inc. Stockholders’ Equity: | ||||
Common stock | 3,208 | 3,181 | ||
Additional paid-in capital | 5,864,670 | 5,807,087 | ||
Treasury stock | (138,022) | (138,022) | ||
Retained earnings (accumulated deficit) | 505,881 | 769,237 | ||
Accumulated other comprehensive income | 15,352 | 20,955 | ||
Total Starwood Property Trust, Inc. Stockholders’ Equity | 6,251,089 | 6,462,438 | ||
Non-controlling interests in consolidated subsidiaries | 357,490 | 373,423 | ||
Total Permanent Equity | 6,608,579 | 6,835,861 | ||
Total Liabilities and Equity | 27,349,164 | 28,309,884 | ||
Subtotal | Nonrelated Party | ||||
Liabilities: | ||||
Accounts payable, accrued expenses and other liabilities | 293,442 | 298,999 | ||
Subtotal | Related Party | ||||
Liabilities: | ||||
Accounts payable, accrued expenses and other liabilities | 44,816 | 41,186 | ||
Subtotal | Primary beneficiary | ||||
Assets: | ||||
Investments of consolidated affordable housing fund | 2,012,833 | |||
Operating segment | Commercial and Residential Lending Segment | ||||
Assets: | ||||
Cash and cash equivalents | 8,823 | 68,593 | ||
Restricted cash | 23,902 | 18,556 | ||
Loans held-for-investment, net | 15,069,389 | 16,038,930 | ||
Loans held-for-sale | 2,604,594 | 2,763,458 | ||
Investment securities | 1,147,829 | 1,250,893 | ||
Properties, net | 431,155 | 463,492 | ||
Properties held-for-sale | 0 | |||
Investments of consolidated affordable housing fund | 0 | |||
Investments in unconsolidated entities | 19,151 | 25,326 | ||
Goodwill | 0 | 0 | ||
Intangible assets | 13,415 | 11,908 | ||
Derivative assets | 55,559 | 101,082 | ||
Accrued interest receivable | 180,441 | 151,852 | ||
Other assets | 301,436 | 170,177 | ||
VIE assets, at fair value | 0 | 0 | ||
Total Assets | 19,855,694 | 21,064,267 | ||
Liabilities: | ||||
Dividends payable | 0 | 0 | ||
Derivative liabilities | 54,066 | 21,523 | ||
Secured financing agreements, net | 10,368,668 | 10,804,970 | ||
Collateralized loan obligations and single asset securitization, net | 2,674,938 | 2,862,211 | ||
Unsecured senior notes, net | 0 | 0 | ||
Debt related to properties held-for-sale | 0 | |||
VIE liabilities, at fair value | 0 | 0 | ||
Total Liabilities | 13,203,908 | 13,835,601 | ||
Temporary Equity: Redeemable non-controlling interests | 0 | 0 | ||
Starwood Property Trust, Inc. Stockholders’ Equity: | ||||
Common stock | 0 | 0 | ||
Additional paid-in capital | 1,121,413 | 2,124,496 | ||
Treasury stock | 0 | 0 | ||
Retained earnings (accumulated deficit) | 5,514,906 | 5,083,100 | ||
Accumulated other comprehensive income | 15,352 | 20,955 | ||
Total Starwood Property Trust, Inc. Stockholders’ Equity | 6,651,671 | 7,228,551 | ||
Non-controlling interests in consolidated subsidiaries | 115 | 115 | ||
Total Permanent Equity | 6,651,786 | 7,228,666 | ||
Total Liabilities and Equity | 19,855,694 | 21,064,267 | ||
Operating segment | Commercial and Residential Lending Segment | Nonrelated Party | ||||
Liabilities: | ||||
Accounts payable, accrued expenses and other liabilities | 106,236 | 146,897 | ||
Operating segment | Commercial and Residential Lending Segment | Related Party | ||||
Liabilities: | ||||
Accounts payable, accrued expenses and other liabilities | 0 | 0 | ||
Operating segment | Commercial and Residential Lending Segment | Primary beneficiary | ||||
Assets: | ||||
Investments of consolidated affordable housing fund | 0 | |||
Operating segment | Infrastructure Lending Segment | ||||
Assets: | ||||
Cash and cash equivalents | 56,300 | 31,153 | ||
Restricted cash | 28,693 | 31,133 | ||
Loans held-for-investment, net | 2,495,660 | 2,352,932 | ||
Loans held-for-sale | 0 | 0 | ||
Investment securities | 19,042 | 66,204 | ||
Properties, net | 0 | 0 | ||
Properties held-for-sale | 0 | |||
Investments of consolidated affordable housing fund | 0 | |||
Investments in unconsolidated entities | 52,691 | 47,078 | ||
Goodwill | 119,409 | 119,409 | ||
Intangible assets | 0 | 0 | ||
Derivative assets | 84 | 122 | ||
Accrued interest receivable | 12,485 | 9,856 | ||
Other assets | 3,486 | 3,614 | ||
VIE assets, at fair value | 0 | 0 | ||
Total Assets | 2,787,850 | 2,661,501 | ||
Liabilities: | ||||
Dividends payable | 0 | 0 | ||
Derivative liabilities | 0 | 105 | ||
Secured financing agreements, net | 1,088,965 | 1,042,679 | ||
Collateralized loan obligations and single asset securitization, net | 816,354 | 814,013 | ||
Unsecured senior notes, net | 0 | 0 | ||
Debt related to properties held-for-sale | 0 | |||
VIE liabilities, at fair value | 0 | 0 | ||
Total Liabilities | 1,950,551 | 1,877,453 | ||
Temporary Equity: Redeemable non-controlling interests | 0 | 0 | ||
Starwood Property Trust, Inc. Stockholders’ Equity: | ||||
Common stock | 0 | 0 | ||
Additional paid-in capital | 664,621 | 683,258 | ||
Treasury stock | 0 | 0 | ||
Retained earnings (accumulated deficit) | 172,678 | 100,790 | ||
Accumulated other comprehensive income | 0 | 0 | ||
Total Starwood Property Trust, Inc. Stockholders’ Equity | 837,299 | 784,048 | ||
Non-controlling interests in consolidated subsidiaries | 0 | 0 | ||
Total Permanent Equity | 837,299 | 784,048 | ||
Total Liabilities and Equity | 2,787,850 | 2,661,501 | ||
Operating segment | Infrastructure Lending Segment | Nonrelated Party | ||||
Liabilities: | ||||
Accounts payable, accrued expenses and other liabilities | 45,232 | 20,656 | ||
Operating segment | Infrastructure Lending Segment | Related Party | ||||
Liabilities: | ||||
Accounts payable, accrued expenses and other liabilities | 0 | 0 | ||
Operating segment | Infrastructure Lending Segment | Primary beneficiary | ||||
Assets: | ||||
Investments of consolidated affordable housing fund | 0 | |||
Operating segment | Property Segment | ||||
Assets: | ||||
Cash and cash equivalents | 19,957 | 31,194 | ||
Restricted cash | 1,016 | 981 | ||
Loans held-for-investment, net | 0 | 0 | ||
Loans held-for-sale | 0 | 0 | ||
Investment securities | 0 | 0 | ||
Properties, net | 555,455 | 864,778 | ||
Properties held-for-sale | 290,937 | |||
Investments of consolidated affordable housing fund | 1,761,002 | |||
Investments in unconsolidated entities | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Intangible assets | 25,432 | 29,613 | ||
Derivative assets | 5,638 | 1,803 | ||
Accrued interest receivable | 1,502 | 863 | ||
Other assets | 50,459 | 54,313 | ||
VIE assets, at fair value | 0 | 0 | ||
Total Assets | 2,963,229 | 2,744,547 | ||
Liabilities: | ||||
Dividends payable | 0 | 0 | ||
Derivative liabilities | 0 | 0 | ||
Secured financing agreements, net | 598,350 | 789,719 | ||
Collateralized loan obligations and single asset securitization, net | 0 | 0 | ||
Unsecured senior notes, net | 0 | 0 | ||
Debt related to properties held-for-sale | 193,691 | |||
VIE liabilities, at fair value | 0 | 0 | ||
Total Liabilities | 804,266 | 801,435 | ||
Temporary Equity: Redeemable non-controlling interests | 414,348 | 362,790 | ||
Starwood Property Trust, Inc. Stockholders’ Equity: | ||||
Common stock | 0 | 0 | ||
Additional paid-in capital | (437,169) | (405,955) | ||
Treasury stock | 0 | 0 | ||
Retained earnings (accumulated deficit) | 1,974,539 | 1,777,643 | ||
Accumulated other comprehensive income | 0 | 0 | ||
Total Starwood Property Trust, Inc. Stockholders’ Equity | 1,537,370 | 1,371,688 | ||
Non-controlling interests in consolidated subsidiaries | 207,245 | 208,634 | ||
Total Permanent Equity | 1,744,615 | 1,580,322 | ||
Total Liabilities and Equity | 2,963,229 | 2,744,547 | ||
Operating segment | Property Segment | Nonrelated Party | ||||
Liabilities: | ||||
Accounts payable, accrued expenses and other liabilities | 12,225 | 11,716 | ||
Operating segment | Property Segment | Related Party | ||||
Liabilities: | ||||
Accounts payable, accrued expenses and other liabilities | 0 | 0 | ||
Operating segment | Property Segment | Primary beneficiary | ||||
Assets: | ||||
Investments of consolidated affordable housing fund | 2,012,833 | |||
Operating segment | Investing and Servicing Segment | ||||
Assets: | ||||
Cash and cash equivalents | 22,011 | 39,023 | ||
Restricted cash | 5,175 | 5,259 | ||
Loans held-for-investment, net | 9,200 | 9,577 | ||
Loans held-for-sale | 41,043 | 21,136 | ||
Investment securities | 1,147,550 | 1,165,628 | ||
Properties, net | 59,774 | 121,716 | ||
Properties held-for-sale | 0 | |||
Investments of consolidated affordable housing fund | 0 | |||
Investments in unconsolidated entities | 33,134 | 33,030 | ||
Goodwill | 140,437 | 140,437 | ||
Intangible assets | 63,985 | 66,310 | ||
Derivative assets | 2,156 | 5,614 | ||
Accrued interest receivable | 1,369 | 1,105 | ||
Other assets | 15,828 | 12,929 | ||
VIE assets, at fair value | 0 | 0 | ||
Total Assets | 1,541,662 | 1,621,764 | ||
Liabilities: | ||||
Dividends payable | 0 | 0 | ||
Derivative liabilities | 0 | 0 | ||
Secured financing agreements, net | 495,857 | 543,256 | ||
Collateralized loan obligations and single asset securitization, net | 0 | 0 | ||
Unsecured senior notes, net | 0 | 0 | ||
Debt related to properties held-for-sale | 0 | |||
VIE liabilities, at fair value | 0 | 0 | ||
Total Liabilities | 540,309 | 589,633 | ||
Temporary Equity: Redeemable non-controlling interests | 0 | 0 | ||
Starwood Property Trust, Inc. Stockholders’ Equity: | ||||
Common stock | 0 | 0 | ||
Additional paid-in capital | (705,176) | (646,662) | ||
Treasury stock | 0 | 0 | ||
Retained earnings (accumulated deficit) | 1,556,399 | 1,514,119 | ||
Accumulated other comprehensive income | 0 | 0 | ||
Total Starwood Property Trust, Inc. Stockholders’ Equity | 851,223 | 867,457 | ||
Non-controlling interests in consolidated subsidiaries | 150,130 | 164,674 | ||
Total Permanent Equity | 1,001,353 | 1,032,131 | ||
Total Liabilities and Equity | 1,541,662 | 1,621,764 | ||
Operating segment | Investing and Servicing Segment | Nonrelated Party | ||||
Liabilities: | ||||
Accounts payable, accrued expenses and other liabilities | 44,452 | 46,377 | ||
Operating segment | Investing and Servicing Segment | Related Party | ||||
Liabilities: | ||||
Accounts payable, accrued expenses and other liabilities | 0 | 0 | ||
Operating segment | Investing and Servicing Segment | Primary beneficiary | ||||
Assets: | ||||
Investments of consolidated affordable housing fund | 0 | |||
Corporate | ||||
Assets: | ||||
Cash and cash equivalents | 87,569 | 91,098 | ||
Restricted cash | 58,526 | 65,143 | ||
Loans held-for-investment, net | 0 | 0 | ||
Loans held-for-sale | 0 | 0 | ||
Investment securities | 0 | 0 | ||
Properties, net | 0 | 0 | ||
Properties held-for-sale | 0 | |||
Investments of consolidated affordable housing fund | 0 | |||
Investments in unconsolidated entities | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Intangible assets | 0 | 0 | ||
Derivative assets | 0 | 0 | ||
Accrued interest receivable | 5,070 | 5,120 | ||
Other assets | 49,564 | 56,444 | ||
VIE assets, at fair value | 0 | 0 | ||
Total Assets | 200,729 | 217,805 | ||
Liabilities: | ||||
Dividends payable | 152,888 | 151,511 | ||
Derivative liabilities | 48,401 | 69,776 | ||
Secured financing agreements, net | 1,336,913 | 1,342,074 | ||
Collateralized loan obligations and single asset securitization, net | 0 | 0 | ||
Unsecured senior notes, net | 2,158,888 | 2,329,211 | ||
Debt related to properties held-for-sale | 0 | |||
VIE liabilities, at fair value | 0 | 0 | ||
Total Liabilities | 3,827,203 | 4,007,111 | ||
Temporary Equity: Redeemable non-controlling interests | 0 | 0 | ||
Starwood Property Trust, Inc. Stockholders’ Equity: | ||||
Common stock | 3,208 | 3,181 | ||
Additional paid-in capital | 5,220,981 | 4,051,950 | ||
Treasury stock | (138,022) | (138,022) | ||
Retained earnings (accumulated deficit) | (8,712,641) | (7,706,415) | ||
Accumulated other comprehensive income | 0 | 0 | ||
Total Starwood Property Trust, Inc. Stockholders’ Equity | (3,626,474) | (3,789,306) | ||
Non-controlling interests in consolidated subsidiaries | 0 | 0 | ||
Total Permanent Equity | (3,626,474) | (3,789,306) | ||
Total Liabilities and Equity | 200,729 | 217,805 | ||
Corporate | Nonrelated Party | ||||
Liabilities: | ||||
Accounts payable, accrued expenses and other liabilities | 85,297 | 73,353 | ||
Corporate | Related Party | ||||
Liabilities: | ||||
Accounts payable, accrued expenses and other liabilities | 44,816 | 41,186 | ||
Corporate | Primary beneficiary | ||||
Assets: | ||||
Investments of consolidated affordable housing fund | 0 | |||
Securitization VIEs | ||||
Assets: | ||||
Cash and cash equivalents | 0 | 0 | ||
Restricted cash | 0 | 0 | ||
Loans held-for-investment, net | 0 | 0 | ||
Loans held-for-sale | 0 | 0 | ||
Investment securities | (1,578,859) | (1,666,921) | ||
Properties, net | 0 | 0 | ||
Properties held-for-sale | 0 | |||
Investments of consolidated affordable housing fund | 0 | |||
Investments in unconsolidated entities | (14,600) | (13,542) | ||
Goodwill | 0 | 0 | ||
Intangible assets | (37,865) | (39,058) | ||
Derivative assets | 0 | 0 | ||
Accrued interest receivable | 0 | (275) | ||
Other assets | 0 | 0 | ||
VIE assets, at fair value | 43,786,356 | 52,453,041 | ||
Total Assets | 42,155,032 | 50,733,245 | ||
Liabilities: | ||||
Dividends payable | 0 | 0 | ||
Derivative liabilities | 0 | 0 | ||
Secured financing agreements, net | (20,757) | (21,166) | ||
Collateralized loan obligations and single asset securitization, net | 0 | 0 | ||
Unsecured senior notes, net | 0 | 0 | ||
Debt related to properties held-for-sale | 0 | |||
VIE liabilities, at fair value | 42,175,734 | 50,754,355 | ||
Total Liabilities | 42,154,977 | 50,733,189 | ||
Temporary Equity: Redeemable non-controlling interests | 0 | 0 | ||
Starwood Property Trust, Inc. Stockholders’ Equity: | ||||
Common stock | 0 | 0 | ||
Additional paid-in capital | 0 | 0 | ||
Treasury stock | 0 | 0 | ||
Retained earnings (accumulated deficit) | 0 | 0 | ||
Accumulated other comprehensive income | 0 | 0 | ||
Total Starwood Property Trust, Inc. Stockholders’ Equity | 0 | 0 | ||
Non-controlling interests in consolidated subsidiaries | 55 | 56 | ||
Total Permanent Equity | 55 | 56 | ||
Total Liabilities and Equity | 42,155,032 | 50,733,245 | ||
Securitization VIEs | Nonrelated Party | ||||
Liabilities: | ||||
Accounts payable, accrued expenses and other liabilities | 0 | 0 | ||
Securitization VIEs | Related Party | ||||
Liabilities: | ||||
Accounts payable, accrued expenses and other liabilities | 0 | $ 0 | ||
Securitization VIEs | Primary beneficiary | ||||
Assets: | ||||
Investments of consolidated affordable housing fund | $ 0 |
Segment and Geographic Data - N
Segment and Geographic Data - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment data | |||
Revenues | $ 2,049,908 | $ 1,464,716 | $ 1,170,088 |
Non-US | |||
Segment data | |||
Revenues | $ 455,600 | $ 275,300 | $ 177,800 |
Schedule III - Real Estate an_2
Schedule III - Real Estate and Accumulated Depreciation - Summary of Properties (Details) | 12 Months Ended | |||
Dec. 31, 2023 USD ($) property | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Encumbrances | $ 1,077,943,000 | |||
Initial Cost to Company, Land | 270,218,000 | |||
Initial Cost to Company, Property | 1,367,508,000 | |||
Costs Capitalized Subsequent to Acquisition | 57,678,000 | |||
Gross Amounts Carried at December 31, 2022, Land | 235,210,000 | |||
Gross Amounts Carried at December 31, 2022, Property | 1,335,291,000 | |||
Gross Amounts Carried at December 31, 2022, Total | 1,570,501,000 | $ 1,659,495,000 | $ 1,347,844,000 | $ 2,573,296,000 |
Accumulated Depreciation | (233,180,000) | $ (209,509,000) | $ (181,457,000) | $ (302,143,000) |
Material costs subsequent to acquisition | 0 | |||
Income tax basis | $ 1,800,000,000 | |||
Hotel - U.S., Midwest | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Number of properties | property | 1 | |||
Encumbrances | $ 0 | |||
Initial Cost to Company, Land | 0 | |||
Initial Cost to Company, Property | 5,565,000 | |||
Costs Capitalized Subsequent to Acquisition | 1,812,000 | |||
Gross Amounts Carried at December 31, 2022, Land | 0 | |||
Gross Amounts Carried at December 31, 2022, Property | 7,377,000 | |||
Gross Amounts Carried at December 31, 2022, Total | 7,377,000 | |||
Accumulated Depreciation | $ (4,732,000) | |||
Industrial - U.S., South East | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Number of properties | property | 1 | |||
Encumbrances | $ 0 | |||
Initial Cost to Company, Land | 813,000 | |||
Initial Cost to Company, Property | 0 | |||
Costs Capitalized Subsequent to Acquisition | 0 | |||
Gross Amounts Carried at December 31, 2022, Land | 813,000 | |||
Gross Amounts Carried at December 31, 2022, Property | 0 | |||
Gross Amounts Carried at December 31, 2022, Total | 813,000 | |||
Accumulated Depreciation | $ 0 | |||
Medical office - U.S., Midwest | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Number of properties | property | 7 | |||
Encumbrances | $ 78,048,000 | |||
Initial Cost to Company, Land | 2,764,000 | |||
Initial Cost to Company, Property | 97,797,000 | |||
Costs Capitalized Subsequent to Acquisition | 10,209,000 | |||
Gross Amounts Carried at December 31, 2022, Land | 2,764,000 | |||
Gross Amounts Carried at December 31, 2022, Property | 108,006,000 | |||
Gross Amounts Carried at December 31, 2022, Total | 110,770,000 | |||
Accumulated Depreciation | $ (21,885,000) | |||
Medical Office - U.S., North East | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Number of properties | property | 7 | |||
Encumbrances | $ 191,661,000 | |||
Initial Cost to Company, Land | 11,283,000 | |||
Initial Cost to Company, Property | 176,996,000 | |||
Costs Capitalized Subsequent to Acquisition | 249,000 | |||
Gross Amounts Carried at December 31, 2022, Land | 11,283,000 | |||
Gross Amounts Carried at December 31, 2022, Property | 177,245,000 | |||
Gross Amounts Carried at December 31, 2022, Total | 188,528,000 | |||
Accumulated Depreciation | $ (37,744,000) | |||
Medical Office - U.S., South East | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Number of properties | property | 6 | |||
Encumbrances | $ 107,252,000 | |||
Initial Cost to Company, Land | 7,930,000 | |||
Initial Cost to Company, Property | 117,678,000 | |||
Costs Capitalized Subsequent to Acquisition | 2,102,000 | |||
Gross Amounts Carried at December 31, 2022, Land | 7,930,000 | |||
Gross Amounts Carried at December 31, 2022, Property | 119,780,000 | |||
Gross Amounts Carried at December 31, 2022, Total | 127,710,000 | |||
Accumulated Depreciation | $ (26,506,000) | |||
Medical Office - U.S., South West | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Number of properties | property | 8 | |||
Encumbrances | $ 125,345,000 | |||
Initial Cost to Company, Land | 15,921,000 | |||
Initial Cost to Company, Property | 126,842,000 | |||
Costs Capitalized Subsequent to Acquisition | 4,179,000 | |||
Gross Amounts Carried at December 31, 2022, Land | 15,921,000 | |||
Gross Amounts Carried at December 31, 2022, Property | 131,021,000 | |||
Gross Amounts Carried at December 31, 2022, Total | 146,942,000 | |||
Accumulated Depreciation | $ (30,121,000) | |||
Medical Office - U.S., West | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Number of properties | property | 6 | |||
Encumbrances | $ 97,694,000 | |||
Initial Cost to Company, Land | 13,415,000 | |||
Initial Cost to Company, Property | 107,845,000 | |||
Costs Capitalized Subsequent to Acquisition | 3,832,000 | |||
Gross Amounts Carried at December 31, 2022, Land | 13,415,000 | |||
Gross Amounts Carried at December 31, 2022, Property | 111,677,000 | |||
Gross Amounts Carried at December 31, 2022, Total | 125,092,000 | |||
Accumulated Depreciation | $ (27,332,000) | |||
Mixed Use - U.S., West | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Number of properties | property | 1 | |||
Encumbrances | $ 8,667,000 | |||
Initial Cost to Company, Land | 1,003,000 | |||
Initial Cost to Company, Property | 14,323,000 | |||
Costs Capitalized Subsequent to Acquisition | 1,472,000 | |||
Gross Amounts Carried at December 31, 2022, Land | 1,003,000 | |||
Gross Amounts Carried at December 31, 2022, Property | 15,795,000 | |||
Gross Amounts Carried at December 31, 2022, Total | 16,798,000 | |||
Accumulated Depreciation | $ (3,618,000) | |||
Multifamily - U.S., West | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Number of properties | property | 1 | |||
Encumbrances | $ 30,503,000 | |||
Initial Cost to Company, Land | 12,402,000 | |||
Initial Cost to Company, Property | 48,454,000 | |||
Costs Capitalized Subsequent to Acquisition | 0 | |||
Gross Amounts Carried at December 31, 2022, Land | 12,402,000 | |||
Gross Amounts Carried at December 31, 2022, Property | 48,454,000 | |||
Gross Amounts Carried at December 31, 2022, Total | 60,856,000 | |||
Accumulated Depreciation | $ (77,000) | |||
Office - U.S., North East | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Number of properties | property | 1 | |||
Encumbrances | $ 18,255,000 | |||
Initial Cost to Company, Land | 7,250,000 | |||
Initial Cost to Company, Property | 10,614,000 | |||
Costs Capitalized Subsequent to Acquisition | 8,807,000 | |||
Gross Amounts Carried at December 31, 2022, Land | 7,250,000 | |||
Gross Amounts Carried at December 31, 2022, Property | 19,421,000 | |||
Gross Amounts Carried at December 31, 2022, Total | 26,671,000 | |||
Accumulated Depreciation | $ (7,601,000) | |||
Office - U.S., South West | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Number of properties | property | 1 | |||
Encumbrances | $ 87,750,000 | |||
Initial Cost to Company, Land | 32,867,000 | |||
Initial Cost to Company, Property | 79,661,000 | |||
Costs Capitalized Subsequent to Acquisition | 0 | |||
Gross Amounts Carried at December 31, 2022, Land | 23,177,000 | |||
Gross Amounts Carried at December 31, 2022, Property | 59,281,000 | |||
Gross Amounts Carried at December 31, 2022, Total | 82,458,000 | |||
Accumulated Depreciation | $ (7,369,000) | |||
Office - U.S., West | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Number of properties | property | 2 | |||
Encumbrances | $ 116,637,000 | |||
Initial Cost to Company, Land | 65,363,000 | |||
Initial Cost to Company, Property | 183,731,000 | |||
Costs Capitalized Subsequent to Acquisition | 8,643,000 | |||
Gross Amounts Carried at December 31, 2022, Land | 40,045,000 | |||
Gross Amounts Carried at December 31, 2022, Property | 122,858,000 | |||
Gross Amounts Carried at December 31, 2022, Total | 162,903,000 | |||
Accumulated Depreciation | $ (7,049,000) | |||
Residential - U.S., North East | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Number of properties | property | 1 | |||
Encumbrances | $ 0 | |||
Initial Cost to Company, Land | 0 | |||
Initial Cost to Company, Property | 93,547,000 | |||
Costs Capitalized Subsequent to Acquisition | 14,703,000 | |||
Gross Amounts Carried at December 31, 2022, Land | 0 | |||
Gross Amounts Carried at December 31, 2022, Property | 108,251,000 | |||
Gross Amounts Carried at December 31, 2022, Total | 108,251,000 | |||
Accumulated Depreciation | $ 0 | |||
Retail - U.S., Midwest | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Number of properties | property | 8 | |||
Encumbrances | $ 78,745,000 | |||
Initial Cost to Company, Land | 27,307,000 | |||
Initial Cost to Company, Property | 143,251,000 | |||
Costs Capitalized Subsequent to Acquisition | 1,450,000 | |||
Gross Amounts Carried at December 31, 2022, Land | 27,307,000 | |||
Gross Amounts Carried at December 31, 2022, Property | 144,701,000 | |||
Gross Amounts Carried at December 31, 2022, Total | 172,008,000 | |||
Accumulated Depreciation | $ (25,928,000) | |||
Retail - U.S., South East | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Number of properties | property | 4 | |||
Encumbrances | $ 42,200,000 | |||
Initial Cost to Company, Land | 19,995,000 | |||
Initial Cost to Company, Property | 59,949,000 | |||
Costs Capitalized Subsequent to Acquisition | 0 | |||
Gross Amounts Carried at December 31, 2022, Land | 19,995,000 | |||
Gross Amounts Carried at December 31, 2022, Property | 59,949,000 | |||
Gross Amounts Carried at December 31, 2022, Total | 79,944,000 | |||
Accumulated Depreciation | $ (11,076,000) | |||
Retail - U.S., South West | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Number of properties | property | 5 | |||
Encumbrances | $ 62,186,000 | |||
Initial Cost to Company, Land | 33,272,000 | |||
Initial Cost to Company, Property | 64,461,000 | |||
Costs Capitalized Subsequent to Acquisition | 220,000 | |||
Gross Amounts Carried at December 31, 2022, Land | 33,272,000 | |||
Gross Amounts Carried at December 31, 2022, Property | 64,681,000 | |||
Gross Amounts Carried at December 31, 2022, Total | 97,953,000 | |||
Accumulated Depreciation | $ (14,190,000) | |||
Retail - U.S., West | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | ||||
Number of properties | property | 2 | |||
Encumbrances | $ 33,000,000 | |||
Initial Cost to Company, Land | 18,633,000 | |||
Initial Cost to Company, Property | 36,794,000 | |||
Costs Capitalized Subsequent to Acquisition | 0 | |||
Gross Amounts Carried at December 31, 2022, Land | 18,633,000 | |||
Gross Amounts Carried at December 31, 2022, Property | 36,794,000 | |||
Gross Amounts Carried at December 31, 2022, Total | 55,427,000 | |||
Accumulated Depreciation | $ (7,952,000) |
Schedule III - Real Estate an_3
Schedule III - Real Estate and Accumulated Depreciation - Real Estate Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate [Roll Forward] | |||
Beginning balance, January 1 | $ 1,659,495 | $ 1,347,844 | $ 2,573,296 |
Additions during the year: | |||
Acquisitions through foreclosure and other transfers | 97,585 | 357,360 | 28,843 |
Improvements | 22,669 | 20,931 | 24,390 |
Total additions | 120,254 | 378,291 | 53,233 |
Deductions during the year: | |||
Costs of real estate sold | (84,309) | (66,578) | (55,945) |
Reclassification of multifamily properties | 0 | 0 | (1,222,740) |
Impairments | (124,902) | 0 | 0 |
Other | (37) | (62) | 0 |
Total deductions | (209,248) | (66,640) | (1,278,685) |
Ending balance, December 31 | $ 1,570,501 | $ 1,659,495 | $ 1,347,844 |
Schedule III - Real Estate an_4
Schedule III - Real Estate and Accumulated Depreciation - Accumulated Depreciation Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate, Accumulated Depreciation [Roll Forward] | |||
Beginning balance, January 1 | $ 209,509 | $ 181,457 | $ 302,143 |
Depreciation expense | 40,858 | 40,006 | 72,299 |
Deconsolidation of multifamily properties | 0 | 0 | (186,716) |
Disposition/write-offs | (17,187) | (11,954) | (6,269) |
Ending balance, December 31 | $ 233,180 | $ 209,509 | $ 181,457 |
Schedule IV - Mortgage Loans _2
Schedule IV - Mortgage Loans on Real Estate - Summary of Loans (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 USD ($) mortgage | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Investments in loans | ||||
Carrying amount | $ 20,219,886 | $ 21,186,033 | $ 18,413,649 | $ 12,139,908 |
Basis spread on variable rate | 4% | |||
Principal Amount of Delinquent Loans | $ 494,886 | |||
Federal income tax basis | 18,000,000 | |||
Commercial and Residential Lending Segment and Investing and Servicing Segment | ||||
Investments in loans | ||||
Carrying amount | $ 17,653,215 | $ 18,774,708 | $ 16,368,799 | $ 10,584,400 |
Individually Significant Mortgage Loans | Other, Various, Australia (1 mortgage) | ||||
Investments in loans | ||||
Number of loans | mortgage | 1 | |||
Face Amount | $ 937,737 | |||
Carrying amount | 928,362 | |||
Principal Amount of Delinquent Loans | $ 0 | |||
Individually Significant Mortgage Loans | Other, Various, Australia (1 mortgage) | Three Month BBSY | ||||
Investments in loans | ||||
Basis spread on variable rate | 4.75% | |||
Aggregated First Mortgages | Hotel, International, Floating (2 mortgages) | ||||
Investments in loans | ||||
Number of loans | mortgage | 2 | |||
Carrying amount | $ 99,143 | |||
Principal Amount of Delinquent Loans | $ 0 | |||
Aggregated First Mortgages | Hotel, International, Floating (2 mortgages) | Three Month EURIBOR | ||||
Investments in loans | ||||
Basis spread on variable rate | 4.50% | |||
Aggregated First Mortgages | Hotel, International, Floating, (4 Mortgages) | ||||
Investments in loans | ||||
Number of loans | mortgage | 4 | |||
Carrying amount | $ 74,513 | |||
Principal Amount of Delinquent Loans | $ 0 | |||
Aggregated First Mortgages | Hotel, International, Floating, (4 Mortgages) | SARON | ||||
Investments in loans | ||||
Basis spread on variable rate | 4.75% | |||
Aggregated First Mortgages | Hotel, International, Floating (5 mortgages) | ||||
Investments in loans | ||||
Number of loans | mortgage | 5 | |||
Carrying amount | $ 61,350 | |||
Principal Amount of Delinquent Loans | $ 0 | |||
Aggregated First Mortgages | Hotel, International, Floating (5 mortgages) | SOFR | Minimum | ||||
Investments in loans | ||||
Basis spread on variable rate | 3.10% | |||
Aggregated First Mortgages | Hotel, International, Floating (5 mortgages) | SOFR | Maximum | ||||
Investments in loans | ||||
Basis spread on variable rate | 9.10% | |||
Aggregated First Mortgages | Hotel, Mid Atlantic, Floating (5 mortgages) | ||||
Investments in loans | ||||
Number of loans | mortgage | 5 | |||
Carrying amount | $ 106,245 | |||
Principal Amount of Delinquent Loans | $ 0 | |||
Aggregated First Mortgages | Hotel, Mid Atlantic, Floating (5 mortgages) | SOFR | Minimum | ||||
Investments in loans | ||||
Basis spread on variable rate | 2.10% | |||
Aggregated First Mortgages | Hotel, Mid Atlantic, Floating (5 mortgages) | SOFR | Maximum | ||||
Investments in loans | ||||
Basis spread on variable rate | 6.90% | |||
Aggregated First Mortgages | Hotel, Midwest, Floating (4 mortgages) | ||||
Investments in loans | ||||
Number of loans | mortgage | 4 | |||
Carrying amount | $ 53,415 | |||
Principal Amount of Delinquent Loans | $ 0 | |||
Aggregated First Mortgages | Hotel, Midwest, Floating (4 mortgages) | SOFR | Minimum | ||||
Investments in loans | ||||
Basis spread on variable rate | 2.35% | |||
Aggregated First Mortgages | Hotel, Midwest, Floating (4 mortgages) | SOFR | Maximum | ||||
Investments in loans | ||||
Basis spread on variable rate | 8.73% | |||
Aggregated First Mortgages | Hotel, North East, Floating (9 mortgages) | ||||
Investments in loans | ||||
Number of loans | mortgage | 9 | |||
Carrying amount | $ 310,952 | |||
Principal Amount of Delinquent Loans | $ 0 | |||
Aggregated First Mortgages | Hotel, North East, Floating (9 mortgages) | SOFR | Minimum | ||||
Investments in loans | ||||
Basis spread on variable rate | 2.50% | |||
Aggregated First Mortgages | Hotel, North East, Floating (9 mortgages) | SOFR | Maximum | ||||
Investments in loans | ||||
Basis spread on variable rate | 10.10% | |||
Aggregated First Mortgages | Hotel, South East, Floating (20 mortgages) | ||||
Investments in loans | ||||
Number of loans | mortgage | 20 | |||
Carrying amount | $ 148,248 | |||
Principal Amount of Delinquent Loans | $ 0 | |||
Aggregated First Mortgages | Hotel, South East, Floating (20 mortgages) | SOFR | Minimum | ||||
Investments in loans | ||||
Basis spread on variable rate | 2.50% | |||
Aggregated First Mortgages | Hotel, South East, Floating (20 mortgages) | SOFR | Maximum | ||||
Investments in loans | ||||
Basis spread on variable rate | 13.37% | |||
Aggregated First Mortgages | Hotel, South West, Floating (8 mortgages) | ||||
Investments in loans | ||||
Number of loans | mortgage | 8 | |||
Carrying amount | $ 97,486 | |||
Principal Amount of Delinquent Loans | $ 0 | |||
Aggregated First Mortgages | Hotel, South West, Floating (8 mortgages) | SOFR | Minimum | ||||
Investments in loans | ||||
Basis spread on variable rate | 2.10% | |||
Aggregated First Mortgages | Hotel, South West, Floating (8 mortgages) | SOFR | Maximum | ||||
Investments in loans | ||||
Basis spread on variable rate | 5.85% | |||
Aggregated First Mortgages | Hotel, Various, Floating (18 mortgages) | ||||
Investments in loans | ||||
Number of loans | mortgage | 18 | |||
Carrying amount | $ 579,533 | |||
Principal Amount of Delinquent Loans | $ 0 | |||
Aggregated First Mortgages | Hotel, Various, Floating (18 mortgages) | SOFR | Minimum | ||||
Investments in loans | ||||
Basis spread on variable rate | 3.86% | |||
Aggregated First Mortgages | Hotel, Various, Floating (18 mortgages) | SOFR | Maximum | ||||
Investments in loans | ||||
Basis spread on variable rate | 10.25% | |||
Aggregated First Mortgages | Hotel, West, Floating (12 mortgages) | ||||
Investments in loans | ||||
Number of loans | mortgage | 12 | |||
Carrying amount | $ 86,464 | |||
Principal Amount of Delinquent Loans | $ 0 | |||
Aggregated First Mortgages | Hotel, West, Floating (12 mortgages) | SOFR | Minimum | ||||
Investments in loans | ||||
Basis spread on variable rate | 2.60% | |||
Aggregated First Mortgages | Hotel, West, Floating (12 mortgages) | SOFR | Maximum | ||||
Investments in loans | ||||
Basis spread on variable rate | 8.35% | |||
Aggregated First Mortgages | Hotel, West, Floating (2 mortgages) | ||||
Investments in loans | ||||
Number of loans | mortgage | 2 | |||
Carrying amount | $ 37,763 | |||
Principal Amount of Delinquent Loans | $ 37,763 | |||
Aggregated First Mortgages | Hotel, West, Floating (2 mortgages) | Basis Swap, Prime Rate | Minimum | ||||
Investments in loans | ||||
Basis spread on variable rate | (0.56%) | |||
Aggregated First Mortgages | Hotel, West, Floating (2 mortgages) | Basis Swap, Prime Rate | Maximum | ||||
Investments in loans | ||||
Basis spread on variable rate | 6.44% | |||
Aggregated First Mortgages | Industrial International, Floating (4 mortgages) | ||||
Investments in loans | ||||
Number of loans | mortgage | 4 | |||
Carrying amount | $ 149,150 | |||
Principal Amount of Delinquent Loans | $ 0 | |||
Aggregated First Mortgages | Industrial International, Floating (4 mortgages) | Three Month BBSY | Minimum | ||||
Investments in loans | ||||
Basis spread on variable rate | 3.10% | |||
Aggregated First Mortgages | Industrial International, Floating (4 mortgages) | Three Month BBSY | Maximum | ||||
Investments in loans | ||||
Basis spread on variable rate | 3.55% | |||
Aggregated First Mortgages | Industrial International, Floating (9 mortgages) | ||||
Investments in loans | ||||
Number of loans | mortgage | 9 | |||
Carrying amount | $ 414,525 | |||
Principal Amount of Delinquent Loans | $ 0 | |||
Aggregated First Mortgages | Industrial International, Floating (9 mortgages) | Three Month EURIBOR | Minimum | ||||
Investments in loans | ||||
Basis spread on variable rate | 2.25% | |||
Aggregated First Mortgages | Industrial International, Floating (9 mortgages) | Three Month EURIBOR | Maximum | ||||
Investments in loans | ||||
Basis spread on variable rate | 11% | |||
Aggregated First Mortgages | Industrial, International, Floating, (2 Mortgages) | ||||
Investments in loans | ||||
Number of loans | mortgage | 2 | |||
Carrying amount | $ 83,935 | |||
Principal Amount of Delinquent Loans | $ 0 | |||
Aggregated First Mortgages | Industrial, International, Floating, (2 Mortgages) | SONIA | Minimum | ||||
Investments in loans | ||||
Basis spread on variable rate | 2.27% | |||
Aggregated First Mortgages | Industrial, International, Floating, (2 Mortgages) | SONIA | Maximum | ||||
Investments in loans | ||||
Basis spread on variable rate | 4.50% | |||
Aggregated First Mortgages | Industrial, North East, Floating (13 mortgages) | ||||
Investments in loans | ||||
Number of loans | mortgage | 13 | |||
Carrying amount | $ 428,397 | |||
Principal Amount of Delinquent Loans | $ 0 | |||
Aggregated First Mortgages | Industrial, North East, Floating (13 mortgages) | SOFR | Minimum | ||||
Investments in loans | ||||
Basis spread on variable rate | 3.22% | |||
Aggregated First Mortgages | Industrial, North East, Floating (13 mortgages) | SOFR | Maximum | ||||
Investments in loans | ||||
Basis spread on variable rate | 8.06% | |||
Aggregated First Mortgages | Industrial, South East, Fixed (4 mortgages) | ||||
Investments in loans | ||||
Number of loans | mortgage | 4 | |||
Carrying amount | $ 31,128 | |||
Interest rate | 8.18% | |||
Principal Amount of Delinquent Loans | $ 0 | |||
Aggregated First Mortgages | Industrial, West, Floating, (6 Mortgages) | ||||
Investments in loans | ||||
Number of loans | mortgage | 6 | |||
Carrying amount | $ 129,521 | |||
Principal Amount of Delinquent Loans | $ 0 | |||
Aggregated First Mortgages | Industrial, West, Floating, (6 Mortgages) | SOFR | Minimum | ||||
Investments in loans | ||||
Basis spread on variable rate | 1.85% | |||
Aggregated First Mortgages | Industrial, West, Floating, (6 Mortgages) | SOFR | Maximum | ||||
Investments in loans | ||||
Basis spread on variable rate | 7.60% | |||
Aggregated First Mortgages | Mixed Use, International, Floating, 2 Mortgages | ||||
Investments in loans | ||||
Number of loans | mortgage | 2 | |||
Carrying amount | $ 89,017 | |||
Principal Amount of Delinquent Loans | $ 0 | |||
Aggregated First Mortgages | Mixed Use, International, Floating, 2 Mortgages | Three Month EURIBOR | ||||
Investments in loans | ||||
Basis spread on variable rate | 4.65% | |||
Aggregated First Mortgages | Mixed Use, International, Floating (1 mortgage) | ||||
Investments in loans | ||||
Number of loans | mortgage | 1 | |||
Carrying amount | $ 446,578 | |||
Principal Amount of Delinquent Loans | $ 0 | |||
Aggregated First Mortgages | Mixed Use, International, Floating (1 mortgage) | SONIA | ||||
Investments in loans | ||||
Basis spread on variable rate | 5.40% | |||
Aggregated First Mortgages | Mixed Use, Mid Atlantic, Floating (1 mortgage) | ||||
Investments in loans | ||||
Number of loans | mortgage | 1 | |||
Carrying amount | $ 215,383 | |||
Principal Amount of Delinquent Loans | $ 0 | |||
Aggregated First Mortgages | Mixed Use, Mid Atlantic, Floating (1 mortgage) | SOFR | ||||
Investments in loans | ||||
Basis spread on variable rate | 3.26% | |||
Aggregated First Mortgages | Mixed Use, South East, Floating (14 mortgages) | ||||
Investments in loans | ||||
Number of loans | mortgage | 14 | |||
Carrying amount | $ 151,452 | |||
Principal Amount of Delinquent Loans | $ 0 | |||
Aggregated First Mortgages | Mixed Use, South East, Floating (14 mortgages) | SOFR | Minimum | ||||
Investments in loans | ||||
Basis spread on variable rate | 2.18% | |||
Aggregated First Mortgages | Mixed Use, South East, Floating (14 mortgages) | SOFR | Maximum | ||||
Investments in loans | ||||
Basis spread on variable rate | 8.70% | |||
Aggregated First Mortgages | Mixed Use, South West, Floating (6 mortgages) | ||||
Investments in loans | ||||
Number of loans | mortgage | 6 | |||
Carrying amount | $ 238,840 | |||
Principal Amount of Delinquent Loans | $ 0 | |||
Aggregated First Mortgages | Mixed Use, South West, Floating (6 mortgages) | SOFR | ||||
Investments in loans | ||||
Basis spread on variable rate | 4.60% | |||
Aggregated First Mortgages | Multi-family, International, Floating (1 mortgage) 1BBSY | ||||
Investments in loans | ||||
Number of loans | mortgage | 1 | |||
Carrying amount | $ 52,060 | |||
Principal Amount of Delinquent Loans | $ 0 | |||
Aggregated First Mortgages | Multi-family, International, Floating (1 mortgage) 1BBSY | One Month BBSY | ||||
Investments in loans | ||||
Basis spread on variable rate | 3.75% | |||
Aggregated First Mortgages | Multi-family, International, Floating (1 mortgage) 3BBSY | ||||
Investments in loans | ||||
Number of loans | mortgage | 1 | |||
Carrying amount | $ 158,305 | |||
Principal Amount of Delinquent Loans | $ 0 | |||
Aggregated First Mortgages | Multi-family, International, Floating (1 mortgage) 3BBSY | Three Month BBSY | ||||
Investments in loans | ||||
Basis spread on variable rate | 3.95% | |||
Aggregated First Mortgages | Multi-family, International, Floating (8 mortgages) | ||||
Investments in loans | ||||
Number of loans | mortgage | 8 | |||
Carrying amount | $ 767,344 | |||
Principal Amount of Delinquent Loans | $ 0 | |||
Aggregated First Mortgages | Multi-family, International, Floating (8 mortgages) | SONIA | Minimum | ||||
Investments in loans | ||||
Basis spread on variable rate | 2.76% | |||
Aggregated First Mortgages | Multi-family, International, Floating (8 mortgages) | SONIA | Maximum | ||||
Investments in loans | ||||
Basis spread on variable rate | 4.07% | |||
Aggregated First Mortgages | Multi-family, Mid Atlantic, Floating (16 mortgages) | ||||
Investments in loans | ||||
Number of loans | mortgage | 16 | |||
Carrying amount | $ 382,131 | |||
Principal Amount of Delinquent Loans | $ 0 | |||
Aggregated First Mortgages | Multi-family, Mid Atlantic, Floating (16 mortgages) | SOFR | Minimum | ||||
Investments in loans | ||||
Basis spread on variable rate | 1.85% | |||
Aggregated First Mortgages | Multi-family, Mid Atlantic, Floating (16 mortgages) | SOFR | Maximum | ||||
Investments in loans | ||||
Basis spread on variable rate | 9% | |||
Aggregated First Mortgages | Multi-family, Midwest, Floating (4 mortgages) | ||||
Investments in loans | ||||
Number of loans | mortgage | 4 | |||
Carrying amount | $ 76,626 | |||
Principal Amount of Delinquent Loans | $ 0 | |||
Aggregated First Mortgages | Multi-family, Midwest, Floating (4 mortgages) | SOFR | Minimum | ||||
Investments in loans | ||||
Basis spread on variable rate | 2.85% | |||
Aggregated First Mortgages | Multi-family, Midwest, Floating (4 mortgages) | SOFR | Maximum | ||||
Investments in loans | ||||
Basis spread on variable rate | 9.85% | |||
Aggregated First Mortgages | Multi-family, North East, Floating (27 mortgages) | ||||
Investments in loans | ||||
Number of loans | mortgage | 27 | |||
Carrying amount | $ 789,236 | |||
Principal Amount of Delinquent Loans | $ 0 | |||
Aggregated First Mortgages | Multi-family, North East, Floating (27 mortgages) | SOFR | Minimum | ||||
Investments in loans | ||||
Basis spread on variable rate | 2.25% | |||
Aggregated First Mortgages | Multi-family, North East, Floating (27 mortgages) | SOFR | Maximum | ||||
Investments in loans | ||||
Basis spread on variable rate | 10.85% | |||
Aggregated First Mortgages | Multi-family, South East, Floating (51 mortgages) | ||||
Investments in loans | ||||
Number of loans | mortgage | 51 | |||
Carrying amount | $ 1,352,286 | |||
Principal Amount of Delinquent Loans | $ 0 | |||
Aggregated First Mortgages | Multi-family, South East, Floating (51 mortgages) | SOFR | Minimum | ||||
Investments in loans | ||||
Basis spread on variable rate | 1.75% | |||
Aggregated First Mortgages | Multi-family, South East, Floating (51 mortgages) | SOFR | Maximum | ||||
Investments in loans | ||||
Basis spread on variable rate | 16.50% | |||
Aggregated First Mortgages | Multi-family, South West, Floating (102 mortgages) | ||||
Investments in loans | ||||
Number of loans | mortgage | 102 | |||
Carrying amount | $ 1,669,342 | |||
Principal Amount of Delinquent Loans | $ 0 | |||
Aggregated First Mortgages | Multi-family, South West, Floating (102 mortgages) | SOFR | Minimum | ||||
Investments in loans | ||||
Basis spread on variable rate | 1.75% | |||
Aggregated First Mortgages | Multi-family, South West, Floating (102 mortgages) | SOFR | Maximum | ||||
Investments in loans | ||||
Basis spread on variable rate | 16.50% | |||
Aggregated First Mortgages | Multi-family, West, Floating (19 mortgages) | ||||
Investments in loans | ||||
Number of loans | mortgage | 19 | |||
Carrying amount | $ 565,695 | |||
Principal Amount of Delinquent Loans | $ 0 | |||
Aggregated First Mortgages | Multi-family, West, Floating (19 mortgages) | SOFR | Minimum | ||||
Investments in loans | ||||
Basis spread on variable rate | 2.60% | |||
Aggregated First Mortgages | Multi-family, West, Floating (19 mortgages) | SOFR | Maximum | ||||
Investments in loans | ||||
Basis spread on variable rate | 8.85% | |||
Aggregated First Mortgages | Office, International, Floating (3 mortgages) | ||||
Investments in loans | ||||
Number of loans | mortgage | 3 | |||
Carrying amount | $ 240,082 | |||
Principal Amount of Delinquent Loans | $ 0 | |||
Aggregated First Mortgages | Office, International, Floating (3 mortgages) | Three Month EURIBOR | Minimum | ||||
Investments in loans | ||||
Basis spread on variable rate | 2.74% | |||
Aggregated First Mortgages | Office, International, Floating (3 mortgages) | Three Month EURIBOR | Maximum | ||||
Investments in loans | ||||
Basis spread on variable rate | 7.50% | |||
Aggregated First Mortgages | Office, International, Floating (1 mortgage) | ||||
Investments in loans | ||||
Number of loans | mortgage | 1 | |||
Carrying amount | $ 80,089 | |||
Principal Amount of Delinquent Loans | $ 0 | |||
Aggregated First Mortgages | Office, International, Floating (1 mortgage) | One Month EURIBOR | ||||
Investments in loans | ||||
Basis spread on variable rate | 6% | |||
Aggregated First Mortgages | Office, International, Floating (6 mortgages) | ||||
Investments in loans | ||||
Number of loans | mortgage | 6 | |||
Carrying amount | $ 467,828 | |||
Principal Amount of Delinquent Loans | $ 0 | |||
Aggregated First Mortgages | Office, International, Floating (6 mortgages) | SONIA | Minimum | ||||
Investments in loans | ||||
Basis spread on variable rate | 3.55% | |||
Aggregated First Mortgages | Office, International, Floating (6 mortgages) | SONIA | Maximum | ||||
Investments in loans | ||||
Basis spread on variable rate | 4.37% | |||
Aggregated First Mortgages | Office, Mid Atlantic, Floating (33 mortgages) | ||||
Investments in loans | ||||
Number of loans | mortgage | 33 | |||
Carrying amount | $ 550,892 | |||
Principal Amount of Delinquent Loans | $ 0 | |||
Aggregated First Mortgages | Office, Mid Atlantic, Floating (33 mortgages) | SOFR | Minimum | ||||
Investments in loans | ||||
Basis spread on variable rate | 2.35% | |||
Aggregated First Mortgages | Office, Mid Atlantic, Floating (33 mortgages) | SOFR | Maximum | ||||
Investments in loans | ||||
Basis spread on variable rate | 7.35% | |||
Aggregated First Mortgages | Office, Mid Atlantic, Floating (14 mortgages) | ||||
Investments in loans | ||||
Number of loans | mortgage | 14 | |||
Carrying amount | $ 246,657 | |||
Principal Amount of Delinquent Loans | $ 122,310 | |||
Aggregated First Mortgages | Office, Mid Atlantic, Floating (14 mortgages) | Prime Rate | Minimum | ||||
Investments in loans | ||||
Basis spread on variable rate | 0.19% | |||
Aggregated First Mortgages | Office, Mid Atlantic, Floating (14 mortgages) | Prime Rate | Maximum | ||||
Investments in loans | ||||
Basis spread on variable rate | 0.93% | |||
Aggregated First Mortgages | Office, Midwest, Floating (17 mortgages) | ||||
Investments in loans | ||||
Number of loans | mortgage | 17 | |||
Carrying amount | $ 144,834 | |||
Principal Amount of Delinquent Loans | $ 0 | |||
Aggregated First Mortgages | Office, Midwest, Floating (17 mortgages) | SOFR | Minimum | ||||
Investments in loans | ||||
Basis spread on variable rate | 1.85% | |||
Aggregated First Mortgages | Office, Midwest, Floating (17 mortgages) | SOFR | Maximum | ||||
Investments in loans | ||||
Basis spread on variable rate | 9.85% | |||
Aggregated First Mortgages | Office, North East, Fixed (8 mortgages) | ||||
Investments in loans | ||||
Number of loans | mortgage | 8 | |||
Carrying amount | $ 95,527 | |||
Interest rate | 6% | |||
Principal Amount of Delinquent Loans | $ 0 | |||
Aggregated First Mortgages | Office, North East, Floating (26 mortgages) | ||||
Investments in loans | ||||
Number of loans | mortgage | 26 | |||
Carrying amount | $ 459,933 | |||
Principal Amount of Delinquent Loans | $ 0 | |||
Aggregated First Mortgages | Office, North East, Floating (26 mortgages) | SOFR | Minimum | ||||
Investments in loans | ||||
Basis spread on variable rate | 2.70% | |||
Aggregated First Mortgages | Office, North East, Floating (26 mortgages) | SOFR | Maximum | ||||
Investments in loans | ||||
Basis spread on variable rate | 8.70% | |||
Aggregated First Mortgages | Office, South East, Fixed (2 mortgages) | ||||
Investments in loans | ||||
Number of loans | mortgage | 2 | |||
Carrying amount | $ 47,835 | |||
Principal Amount of Delinquent Loans | $ 0 | |||
Aggregated First Mortgages | Office, South East, Fixed (2 mortgages) | Minimum | ||||
Investments in loans | ||||
Interest rate | 5% | |||
Aggregated First Mortgages | Office, South East, Fixed (2 mortgages) | Maximum | ||||
Investments in loans | ||||
Interest rate | 12% | |||
Aggregated First Mortgages | Office, South East, Floating (16 mortgages) | ||||
Investments in loans | ||||
Number of loans | mortgage | 16 | |||
Carrying amount | $ 326,372 | |||
Principal Amount of Delinquent Loans | $ 0 | |||
Aggregated First Mortgages | Office, South East, Floating (16 mortgages) | SOFR | Minimum | ||||
Investments in loans | ||||
Basis spread on variable rate | 1.75% | |||
Aggregated First Mortgages | Office, South East, Floating (16 mortgages) | SOFR | Maximum | ||||
Investments in loans | ||||
Basis spread on variable rate | 10.50% | |||
Aggregated First Mortgages | Office, South West, Floating (26 mortgages) | ||||
Investments in loans | ||||
Number of loans | mortgage | 26 | |||
Carrying amount | $ 454,815 | |||
Principal Amount of Delinquent Loans | $ 252,000 | |||
Aggregated First Mortgages | Office, South West, Floating (26 mortgages) | SOFR | Minimum | ||||
Investments in loans | ||||
Basis spread on variable rate | 2.10% | |||
Aggregated First Mortgages | Office, South West, Floating (26 mortgages) | SOFR | Maximum | ||||
Investments in loans | ||||
Basis spread on variable rate | 8.35% | |||
Aggregated First Mortgages | Office, West, Floating (32 mortgages) | ||||
Investments in loans | ||||
Number of loans | mortgage | 32 | |||
Carrying amount | $ 314,862 | |||
Principal Amount of Delinquent Loans | $ 0 | |||
Aggregated First Mortgages | Office, West, Floating (32 mortgages) | SOFR | Minimum | ||||
Investments in loans | ||||
Basis spread on variable rate | 2.10% | |||
Aggregated First Mortgages | Office, West, Floating (32 mortgages) | SOFR | Maximum | ||||
Investments in loans | ||||
Basis spread on variable rate | 6.10% | |||
Aggregated First Mortgages | Other, International, Floating (2 mortgages) | ||||
Investments in loans | ||||
Number of loans | mortgage | 2 | |||
Carrying amount | $ 275,698 | |||
Principal Amount of Delinquent Loans | $ 0 | |||
Aggregated First Mortgages | Other, International, Floating (2 mortgages) | SONIA | Minimum | ||||
Investments in loans | ||||
Basis spread on variable rate | 4.40% | |||
Aggregated First Mortgages | Other, International, Floating (2 mortgages) | SONIA | Maximum | ||||
Investments in loans | ||||
Basis spread on variable rate | 8.05% | |||
Aggregated First Mortgages | Other, Midwest, Floating (2 mortgages) | ||||
Investments in loans | ||||
Number of loans | mortgage | 2 | |||
Carrying amount | $ 29,702 | |||
Principal Amount of Delinquent Loans | $ 0 | |||
Aggregated First Mortgages | Other, Midwest, Floating (2 mortgages) | SOFR | Minimum | ||||
Investments in loans | ||||
Basis spread on variable rate | 5% | |||
Aggregated First Mortgages | Other, Midwest, Floating (2 mortgages) | SOFR | Maximum | ||||
Investments in loans | ||||
Basis spread on variable rate | 12.50% | |||
Aggregated First Mortgages | Other, North East, Fixed (1 mortgage) | ||||
Investments in loans | ||||
Number of loans | mortgage | 1 | |||
Carrying amount | $ 9,200 | |||
Interest rate | 4.09% | |||
Principal Amount of Delinquent Loans | $ 9,200 | |||
Aggregated First Mortgages | Other, South West, Fixed (1 mortgage) | ||||
Investments in loans | ||||
Number of loans | mortgage | 1 | |||
Carrying amount | $ 20,000 | |||
Interest rate | 7% | |||
Principal Amount of Delinquent Loans | $ 0 | |||
Aggregated First Mortgages | Residential, North East, Floating (3 mortgages) | ||||
Investments in loans | ||||
Number of loans | mortgage | 3 | |||
Carrying amount | $ 194,269 | |||
Principal Amount of Delinquent Loans | $ 0 | |||
Aggregated First Mortgages | Residential, North East, Floating (3 mortgages) | SOFR | ||||
Investments in loans | ||||
Basis spread on variable rate | 4.10% | |||
Aggregated First Mortgages | Residential, South East, Floating (4 mortgages) | ||||
Investments in loans | ||||
Number of loans | mortgage | 4 | |||
Carrying amount | $ 16,213 | |||
Principal Amount of Delinquent Loans | $ 0 | |||
Aggregated First Mortgages | Residential, South East, Floating (4 mortgages) | SOFR | ||||
Investments in loans | ||||
Basis spread on variable rate | 5.80% | |||
Aggregated First Mortgages | Residential, West, Floating (2 mortgages) | ||||
Investments in loans | ||||
Number of loans | mortgage | 2 | |||
Carrying amount | $ 18,582 | |||
Principal Amount of Delinquent Loans | $ 0 | |||
Aggregated First Mortgages | Residential, West, Floating (2 mortgages) | SOFR | ||||
Investments in loans | ||||
Basis spread on variable rate | 3.87% | |||
Aggregated First Mortgages | Retail, North East, Floating (2 mortgages ) | ||||
Investments in loans | ||||
Number of loans | mortgage | 2 | |||
Carrying amount | $ 185,386 | |||
Principal Amount of Delinquent Loans | $ 0 | |||
Aggregated First Mortgages | Retail, North East, Floating (2 mortgages ) | SOFR | ||||
Investments in loans | ||||
Basis spread on variable rate | 9% | |||
Aggregated First Mortgages | Loans Held-for-Sale, Various, Fixed | ||||
Investments in loans | ||||
Carrying amount | $ 2,645,637 | |||
Principal Amount of Delinquent Loans | $ 68,688 | |||
Aggregated First Mortgages | Loans Held-for-Sale, Various, Fixed | Minimum | ||||
Investments in loans | ||||
Interest rate | 2.80% | |||
Aggregated First Mortgages | Loans Held-for-Sale, Various, Fixed | Maximum | ||||
Investments in loans | ||||
Interest rate | 9.90% | |||
Aggregated Subordinated and Mezzanine Loans | ||||
Investments in loans | ||||
Loan Loss Allowance | $ (298,775) | |||
Prepaid Loan Costs, Net | $ 3,445 | |||
Aggregated Subordinated and Mezzanine Loans | Hotel, West, Floating (2 mortgages) | ||||
Investments in loans | ||||
Number of loans | mortgage | 2 | |||
Carrying amount | $ 19,179 | |||
Principal Amount of Delinquent Loans | $ 0 | |||
Aggregated Subordinated and Mezzanine Loans | Hotel, West, Floating (2 mortgages) | SOFR | ||||
Investments in loans | ||||
Basis spread on variable rate | 11.08% | |||
Aggregated Subordinated and Mezzanine Loans | Hotel, South East, Floating (1 mortgage) | ||||
Investments in loans | ||||
Number of loans | mortgage | 1 | |||
Carrying amount | $ 38,563 | |||
Principal Amount of Delinquent Loans | $ 0 | |||
Aggregated Subordinated and Mezzanine Loans | Hotel, South East, Floating (1 mortgage) | SOFR | ||||
Investments in loans | ||||
Basis spread on variable rate | 9.47% | |||
Aggregated Subordinated and Mezzanine Loans | Industrial, South East, Fixed (1 mortgage) | ||||
Investments in loans | ||||
Number of loans | mortgage | 1 | |||
Carrying amount | $ 3,967 | |||
Interest rate | 8.18% | |||
Principal Amount of Delinquent Loans | $ 0 | |||
Aggregated Subordinated and Mezzanine Loans | Industrial, South East, Floating (2 mortgages) | ||||
Investments in loans | ||||
Number of loans | mortgage | 2 | |||
Carrying amount | $ 9,214 | |||
Principal Amount of Delinquent Loans | $ 0 | |||
Aggregated Subordinated and Mezzanine Loans | Industrial, South East, Floating (2 mortgages) | SOFR | ||||
Investments in loans | ||||
Basis spread on variable rate | 9.43% | |||
Aggregated Subordinated and Mezzanine Loans | Industrial, South West, Floating (2 mortgages) | ||||
Investments in loans | ||||
Number of loans | mortgage | 2 | |||
Carrying amount | $ 17,660 | |||
Principal Amount of Delinquent Loans | $ 0 | |||
Aggregated Subordinated and Mezzanine Loans | Industrial, South West, Floating (2 mortgages) | SOFR | ||||
Investments in loans | ||||
Basis spread on variable rate | 10.15% | |||
Aggregated Subordinated and Mezzanine Loans | Industrial, West, Floating (2 mortgages) | ||||
Investments in loans | ||||
Number of loans | mortgage | 2 | |||
Carrying amount | $ 12,185 | |||
Principal Amount of Delinquent Loans | $ 0 | |||
Aggregated Subordinated and Mezzanine Loans | Industrial, West, Floating (2 mortgages) | SOFR | ||||
Investments in loans | ||||
Basis spread on variable rate | 11.40% | |||
Aggregated Subordinated and Mezzanine Loans | Multi-family, North East, Floating (3 mortgages) | ||||
Investments in loans | ||||
Number of loans | mortgage | 3 | |||
Carrying amount | $ 75,168 | |||
Principal Amount of Delinquent Loans | $ 0 | |||
Aggregated Subordinated and Mezzanine Loans | Multi-family, North East, Floating (3 mortgages) | SOFR | Minimum | ||||
Investments in loans | ||||
Basis spread on variable rate | 3.35% | |||
Aggregated Subordinated and Mezzanine Loans | Multi-family, North East, Floating (3 mortgages) | SOFR | Maximum | ||||
Investments in loans | ||||
Basis spread on variable rate | 13.75% | |||
Aggregated Subordinated and Mezzanine Loans | Office, International, Floating (5 mortgages) | ||||
Investments in loans | ||||
Number of loans | mortgage | 5 | |||
Carrying amount | $ 36,784 | |||
Principal Amount of Delinquent Loans | $ 0 | |||
Aggregated Subordinated and Mezzanine Loans | Office, International, Floating (5 mortgages) | Three Month EURIBOR | Minimum | ||||
Investments in loans | ||||
Basis spread on variable rate | 7% | |||
Aggregated Subordinated and Mezzanine Loans | Office, International, Floating (5 mortgages) | Three Month EURIBOR | Maximum | ||||
Investments in loans | ||||
Basis spread on variable rate | 8.95% | |||
Aggregated Subordinated and Mezzanine Loans | Office, West, Floating (2 mortgages) | ||||
Investments in loans | ||||
Number of loans | mortgage | 2 | |||
Carrying amount | $ 81,549 | |||
Principal Amount of Delinquent Loans | $ 0 | |||
Aggregated Subordinated and Mezzanine Loans | Office, West, Floating (2 mortgages) | SOFR | ||||
Investments in loans | ||||
Basis spread on variable rate | 6.34% | |||
Aggregated Subordinated and Mezzanine Loans | Retail, Midwest, Fixed (1 mortgage) | ||||
Investments in loans | ||||
Number of loans | mortgage | 1 | |||
Carrying amount | $ 4,925 | |||
Interest rate | 7.16% | |||
Principal Amount of Delinquent Loans | $ 4,925 | |||
Aggregated Subordinated and Mezzanine Loans | Residential, North East, Floating (2 mortgages) | ||||
Investments in loans | ||||
Number of loans | mortgage | 2 | |||
Carrying amount | $ 9,988 | |||
Principal Amount of Delinquent Loans | $ 0 | |||
Aggregated Subordinated and Mezzanine Loans | Residential, North East, Floating (2 mortgages) | SOFR | ||||
Investments in loans | ||||
Basis spread on variable rate | 7.75% | |||
Aggregated Subordinated and Mezzanine Loans | Residential, West, Fixed (1 mortgage) | ||||
Investments in loans | ||||
Number of loans | mortgage | 1 | |||
Carrying amount | $ 40,525 | |||
Interest rate | 9% | |||
Principal Amount of Delinquent Loans | $ 0 |
Schedule IV - Mortgage Loans _3
Schedule IV - Mortgage Loans on Real Estate - Loan Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Activity in loan portfolio | |||
Balance at the beginning of the period | $ 21,186,033 | $ 18,413,649 | $ 12,139,908 |
Acquisitions/originations/additional funding | 3,474,242 | 10,178,734 | 13,990,579 |
Capitalized interest | 125,747 | 124,150 | 119,136 |
Basis of loans sold | (866,104) | (4,253,551) | (4,176,868) |
Loan maturities/principal repayments | (3,647,171) | (2,258,630) | (4,197,809) |
Discount accretion/premium amortization | 67,112 | 62,557 | 57,948 |
Changes in fair value | 62,702 | (346,222) | 69,050 |
Foreign currency translation, net | 153,472 | (306,946) | (72,130) |
Credit loss (provision) reversal, net | (232,712) | (49,049) | (4,633) |
Transfer to/from other asset/liability classifications or between segments | (661) | (88,348) | 524,776 |
Balance at the end of the period | 20,219,886 | 21,186,033 | 18,413,649 |
Commercial and Residential Lending Segment and Investing and Servicing Segment | |||
Activity in loan portfolio | |||
Balance at the beginning of the period | 18,774,708 | 16,368,799 | 10,584,400 |
Acquisitions/originations/additional funding | 2,441,608 | 9,474,999 | 13,173,459 |
Capitalized interest | 124,214 | 122,711 | 118,273 |
Basis of loans sold | (866,104) | (4,226,727) | (4,139,166) |
Loan maturities/principal repayments | (2,763,682) | (1,962,657) | (3,709,444) |
Discount accretion/premium amortization | 52,601 | 52,334 | 51,816 |
Changes in fair value | 62,702 | (346,222) | 69,050 |
Foreign currency translation, net | 152,869 | (304,051) | (71,419) |
Credit loss (provision) reversal, net | (222,266) | (42,201) | 7,947 |
Loan foreclosure, equity control and conversion to equity interest | (102,774) | (273,929) | (36,308) |
Transfer to/from other asset/liability classifications or between segments | (661) | (88,348) | 320,191 |
Balance at the end of the period | $ 17,653,215 | $ 18,774,708 | $ 16,368,799 |