Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | May 01, 2018 | |
Document And Entity Information [Abstract] | ||
Document type | 10-Q | |
Amendment flag | false | |
Document period end date | Mar. 31, 2018 | |
Document fiscal year focus | 2,018 | |
Document fiscal period focus | Q1 | |
Trading symbol | ARI | |
Entity registrant name | Apollo Commercial Real Estate Finance, Inc. | |
Entity central index key | 1,467,760 | |
Current fiscal year end date | --12-31 | |
Entity filer category | Large Accelerated Filer | |
Entity common stock, shares outstanding (in shares) | 123,020,301 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Assets: | ||
Cash | $ 98,310 | $ 77,671 |
Carrying value | 4,067,494 | 3,679,758 |
Loan proceeds held by servicer | 30,281 | 302,756 |
Other assets | 46,087 | 28,420 |
Total Assets | 4,242,172 | 4,088,605 |
Liabilities: | ||
Secured debt arrangements, net (net of deferred financing costs of $14,037 and $14,348 in 2018 and 2017, respectively) | 1,212,749 | 1,330,847 |
Convertible senior notes, net | 585,972 | 584,897 |
Derivative liabilities, net | 14,499 | 5,644 |
Accounts payable, accrued expenses and other liabilities | 73,330 | 70,906 |
Payable to related party | 8,092 | 8,168 |
Total Liabilities | 1,894,642 | 2,000,462 |
Commitments and Contingencies (see Note 15) | ||
Stockholders’ Equity: | ||
Common stock, $0.01 par value, 450,000,000 shares authorized, 122,992,231 and 107,121,235 shares issued and outstanding in 2018 and 2017, respectively | 1,230 | 1,071 |
Additional paid-in-capital | 2,444,036 | 2,170,078 |
Accumulated deficit | (97,873) | (83,143) |
Total Stockholders’ Equity | 2,347,530 | 2,088,143 |
Total Liabilities and Stockholders’ Equity | 4,242,172 | 4,088,605 |
Commercial Mortgage Portfolio Segment [Member] | ||
Assets: | ||
Carrying value | 3,029,240 | 2,653,826 |
Subordinate Mortgage Portfolio Segment [Member] | ||
Assets: | ||
Carrying value | 1,038,254 | 1,025,932 |
Series B Preferred Stock [Member] | ||
Stockholders’ Equity: | ||
Preferred stock | 68 | 68 |
Series C Preferred Stock [Member] | ||
Stockholders’ Equity: | ||
Preferred stock | $ 69 | $ 69 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Deferred financing costs | $ 14,037 | $ 14,348 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 450,000,000 | 450,000,000 |
Common stock, shares issued (in shares) | 122,992,231 | 107,121,235 |
Common shares outstanding (in shares) | 122,992,231 | 107,121,235 |
Series B Preferred Stock [Member] | ||
Preferred stock, shares issued (in shares) | 6,770,393 | 6,770,393 |
Preferred stock, shares outstanding (in shares) | 6,770,393 | 6,770,393 |
Preferred stock, aggregate liquidation preference | $ 169,260 | $ 169,260 |
Series C Preferred Stock [Member] | ||
Preferred stock, shares issued (in shares) | 6,900,000 | 6,900,000 |
Preferred stock, shares outstanding (in shares) | 6,900,000 | 6,900,000 |
Preferred stock, aggregate liquidation preference | $ 172,500 | $ 172,500 |
Commercial Mortgage Portfolio Segment [Member] | ||
Loans pledged as collateral | $ 2,176,126 | $ 2,148,368 |
Condensed Consolidated Statemen
Condensed Consolidated Statement of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Net interest income: | ||
Interest income from commercial mortgage loans | $ 52,114 | $ 34,398 |
Interest income from subordinate loans | 33,853 | 34,390 |
Interest income from securities | 0 | |
Interest expense | (22,740) | (17,030) |
Net interest income | 63,227 | 57,812 |
Operating expenses: | ||
General and administrative expenses (includes equity-based compensation of $3,342 and $3,791 in 2018 and 2017, respectively) | (4,998) | (5,758) |
Management fees to related party | (8,092) | (7,432) |
Total operating expenses | (13,090) | (13,190) |
Income from unconsolidated joint venture | 0 | 458 |
Other income | 203 | 108 |
Realized loss on sale of assets | 0 | (1,042) |
Unrealized gain on securities | 0 | 2,852 |
Foreign currency gain | 10,125 | 3,172 |
Loss on derivative instruments (includes unrealized losses of $(8,855) and $(2,889) in 2018 and 2017, respectively) | (11,032) | (3,045) |
Net income | 49,433 | 47,125 |
Preferred dividends | (6,835) | (9,310) |
Net income available to common stockholders | $ 42,598 | $ 37,815 |
Net income per share of common stock (in dollars per share) | $ 0.38 | $ 0.41 |
Basic weighted average shares of common stock outstanding (in shares) | 110,211,853 | 91,612,447 |
Diluted weighted average shares of common stock outstanding (in shares) | 111,871,429 | 92,998,250 |
Dividend declared per share of common stock (in dollars per share) | $ 0.46 | $ 0.46 |
Condensed Consolidated Stateme5
Condensed Consolidated Statement of Operations (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Income Statement [Abstract] | ||
General and administrative expenses, equity-based compensation | $ 3,342 | $ 3,791 |
Unrealized gain (loss) on derivatives, including other adjustment | $ (8,855) | $ (2,889) |
Condensed Consolidated Stateme6
Condensed Consolidated Statement of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | ||
Net income available to common stockholders | $ 42,598 | $ 37,815 |
Foreign currency translation adjustment | 0 | 251 |
Comprehensive income | $ 42,598 | $ 38,066 |
Condensed Consolidated Stateme7
Condensed Consolidated Statement of Changes in Stockholders' Equity - 3 months ended Mar. 31, 2018 - USD ($) $ in Thousands | Total | Preferred Stock [Member] | Common Stock [Member] | Additional Paid In Capital [Member] | Accumulated Deficit [Member] |
Beginning balance (in shares) at Dec. 31, 2017 | 13,670,393 | 107,121,235 | |||
Beginning balance at Dec. 31, 2017 | $ 2,088,143 | $ 137 | $ 1,071 | $ 2,170,078 | $ (83,143) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Capital increase (decrease) related to Equity Incentive Plan (in shares) | 345,996 | ||||
Capital increase (decrease) related to Equity Incentive Plan | (1,385) | $ 4 | (1,389) | ||
Issuance of stock (in shares) | 15,525,000 | ||||
Issuance of stock | 275,879 | $ 155 | 275,724 | ||
Offering costs | (377) | (377) | |||
Net income | 49,433 | 49,433 | |||
Dividends declared on preferred stock | (6,835) | (6,835) | |||
Dividends declared on common stock - $0.46 per share | (57,328) | (57,328) | |||
Ending balance (in shares) at Mar. 31, 2018 | 13,670,393 | 122,992,231 | |||
Ending balance at Mar. 31, 2018 | $ 2,347,530 | $ 137 | $ 1,230 | $ 2,444,036 | $ (97,873) |
Condensed Consolidated Stateme8
Condensed Consolidated Statement of Changes in Stockholders' Equity (Parenthetical) | 3 Months Ended |
Mar. 31, 2018$ / shares | |
Statement of Stockholders' Equity [Abstract] | |
Dividends declared on common stock (in dollars per share) | $ 0.46 |
Condensed Consolidated Stateme9
Condensed Consolidated Statement of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Cash flows provided by operating activities: | ||
Net income | $ 49,433 | $ 47,125 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Amortization of discount/premium and PIK | (15,695) | (3,517) |
Amortization of deferred financing costs | 2,545 | 1,203 |
Equity-based compensation | (1,385) | 1,461 |
Unrealized gain on securities | 0 | (2,852) |
Income from unconsolidated joint venture | 0 | (458) |
Foreign currency gain | (9,853) | (2,808) |
Unrealized loss on derivative instruments | 8,855 | 2,897 |
Realized loss on sale of assets | 0 | 1,042 |
Changes in operating assets and liabilities: | ||
Proceeds received from PIK | 55,000 | 0 |
Other assets | (2,620) | (10,926) |
Accounts payable, accrued expenses and other liabilities | 2,075 | (8,011) |
Payable to related party | (76) | 418 |
Net cash (used in) provided by operating activities | 88,279 | 25,574 |
Cash flows used in investing activities: | ||
New funding of commercial mortgage loans | (476,951) | (258,950) |
Add-on funding of commercial mortgage loans | (13,185) | (60,649) |
New funding of subordinate loans | (11,687) | (117,500) |
Add-on funding of subordinate loans | (5,208) | (55,182) |
Payments received on commercial mortgage loans | 90,547 | 6,336 |
Payments received on subordinate loans | 257,548 | 37,738 |
Origination and exit fees received on commercial mortgage and subordinate loans | 19,085 | 6,294 |
Funding of unconsolidated joint venture | 0 | (726) |
Funding of other assets | 0 | (1,379) |
Increase in collateral held related to derivative contracts | (15,220) | (960) |
Payments and proceeds received on securities | 0 | 70,033 |
Net cash (used in) provided by investing activities | (155,071) | (374,945) |
Cash flows from financing activities: | ||
Proceeds from issuance of common stock | 275,879 | 0 |
Payment of offering costs | (38) | (58) |
Proceeds from secured debt arrangements | 416,549 | 407,955 |
Repayments of secured debt arrangements | (538,562) | (67,286) |
Repayments of participations sold | 0 | (434) |
Payment of deferred financing costs | (2,234) | (4,394) |
Dividends on common stock | (57,328) | (42,947) |
Dividends on preferred stock | (6,835) | (9,310) |
Net cash (used in) provided by financing activities | 87,431 | 283,526 |
Net increase (decrease) in cash and cash equivalents | 20,639 | (65,845) |
Cash and restricted cash, beginning of period | 77,671 | 263,452 |
Cash and restricted cash, end of period | 98,310 | 197,607 |
Supplemental disclosure of cash flow information: | ||
Interest paid | 26,517 | 18,965 |
Supplemental disclosure of non-cash financing activities: | ||
Dividend declared, not yet paid | 63,598 | 51,109 |
Offering costs payable | 339 | 222 |
Loan proceeds held by servicer | $ 30,281 | $ 0 |
Organization
Organization | 3 Months Ended |
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | Organization Apollo Commercial Real Estate Finance, Inc. (together with its consolidated subsidiaries, is referred to throughout this report as the “Company,” “ARI,” “we,” “us” and “our”) is a corporation that has elected to be taxed as a real estate investment trust (“REIT”) for U.S. federal income tax purposes and primarily originates, acquires, invests in and manages performing commercial first mortgage loans, subordinate financings, and other commercial real estate-related debt investments in the United States. These asset classes are referred to as the Company’s target assets. The Company, organized in Maryland on June 29, 2009 , commenced operations on September 29, 2009 and is externally managed and advised by ACREFI Management, LLC (the “Manager”), an indirect subsidiary of Apollo Global Management, LLC (together with its subsidiaries, "Apollo"). The Company elected to be taxed as a REIT under the Internal Revenue Code of 1986, as amended, commencing with the taxable year ended December 31, 2009. To maintain its tax qualification as a REIT, the Company is required to distribute at least 90% of its taxable income, excluding net capital gains, to stockholders and meet certain other asset, income, and ownership tests. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation The accompanying condensed consolidated financial statements include the Company’s accounts and those of its consolidated subsidiaries. All intercompany amounts have been eliminated. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“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 and the reported amounts of revenues and expenses during the reporting periods. The Company’s most significant estimates include loan loss reserves and impairment. Actual results could differ from those estimates. These unaudited condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017, as filed with the Securities and Exchange Commission (the “SEC”). In the opinion of management, all adjustments (consisting only of normal recurring adjustments) necessary to present fairly the Company’s financial position, results of operations and cash flows have been included. The Company's results of operations for the three months ended March 31, 2018 are not necessarily indicative of the results to be expected for the full year or any other future period. The Company currently operates in one reporting segment. Recent Accounting Pronouncements In August 2017, the FASB issued ASU 2017-12 "Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities” ("ASU 2017-12"). The intention of ASU 2017-12 is to align an entity’s financial reporting for hedging activities with the economic objectives of those activities. Upon adoption of ASU 2017-12, the cumulative ineffectiveness previously recognized on existing cash flow and net investment hedges will be adjusted and removed from beginning retained earnings and placed in accumulated other comprehensive income (loss). The Company notes that this guidance will not have a material impact on the Company's condensed consolidated financial statements. ASU 2017-12 is effective for fiscal years beginning after December 15, 2018 and is applied retrospectively. In November 2016, the FASB issued ASU 2016-18 “Statement of Cash Flows (Topic 230): Restricted Cash” ("ASU 2016-18"). ASU 2016-18 is intended to clarify how entities present restricted cash in the statement of cash flows. The guidance requires entities to show the changes in the total of cash and cash equivalents and restricted cash in the statement of cash flows. As a result, entities will no longer present transfers between cash and cash equivalents and restricted cash in the statement of cash flows. When cash and cash equivalents and restricted cash are presented in more than one line item on the balance sheet, the new guidance requires a reconciliation of the totals in the statement of cash flows to the related captions in the balance sheet. This reconciliation can be presented either on the face of the statement of cash flows or in the notes to the financial statements. ASU 2016-18 is effective for fiscal years beginning after December 15, 2017 and is to be applied retrospectively. The Company early adopted ASU 2016-18 on June 30, 2017, which changed the Company's condensed consolidated statement of cash flows and related disclosures for all periods presented. The following is a reconciliation of the Company's cash, cash equivalents, and restricted cash to the total presented in the Company's condensed consolidated statement of cash flows for the three months ended March 31, 2018 and March 31, 2017 , respectively ($ in thousands): Balance at March 31, 2018 Balance at March 31, 2017 Cash $ 98,310 $ 142,905 Restricted cash $ — $ 54,702 Total cash and restricted cash shown in the condensed consolidated statement of cash flows $ 98,310 $ 197,607 In June 2016, the FASB issued ASU 2016-13 “Financial Instruments - Credit Losses - Measurement of Credit Losses on Financial Instruments (Topic 326)" ("ASU 2016-13"). ASU 2016-13 significantly changes how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. The guidance will replace the “incurred loss” approach under existing guidance with an “expected loss” model for instruments measured at amortized cost, and require entities to record allowances for available-for-sale debt securities rather than reduce the carrying amount, as they do today under the other-than-temporary impairment model. It also simplifies the accounting model for purchased credit-impaired debt securities and loans. The guidance is effective for fiscal years beginning after December 15, 2019 and is to be adopted through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. While the Company is currently evaluating the impact ASU 2016-13 will have on its condensed consolidated financial statements, we expect that the adoption will result in higher provisions for potential loan losses. |
Fair Value Disclosure
Fair Value Disclosure | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosure | Fair Value Disclosure GAAP establishes a hierarchy of valuation techniques based on the observability of the inputs utilized in measuring financial instruments at fair values. Market based or observable inputs are the preferred source of values, followed by valuation models using management assumptions in the absence of market inputs. The three levels of the hierarchy as noted in ASC 820, Fair Value Measurements and Disclosures , are described below: Level I — Quoted prices in active markets for identical assets or liabilities. Level II — Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants would use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk and others. Level III — Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. While the Company anticipates that its valuation methods will be appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date. The Company will use inputs that are current as of the measurement date, which may include periods of market dislocation, during which price transparency may be reduced. The estimated fair values of the Company’s derivative instruments are determined using a discounted cash flow analysis on the expected cash flows of each derivative. The fair values of interest rate swaps are determined using the market standard methodology of netting the discounted future fixed cash receipts (or payments) and the discounted expected variable cash payments (or receipts). The fair values of interest rate caps are determined using the market standard methodology of discounting the future expected cash receipts (or payments) that would occur if variable interest rates rise above the strike rate of the caps. The variable interest rates used in the calculation of projected cash flows are based on an expectation of future interest rates derived from observable market interest rate curves and volatilities. The fair values of foreign exchange forwards are determined by comparing the contracted forward exchange rate to the current market exchange rate. The current market exchange rates are determined by using market spot rates, forward rates and interest rate curves for the underlying countries. The Company’s derivative instruments are classified as Level II in the fair value hierarchy. The following table summarizes the levels in the fair value hierarchy into which the Company’s financial instruments were categorized as of March 31, 2018 and December 31, 2017 ($ in thousands): Fair Value as of March 31, 2018 Fair Value as of December 31, 2017 Level I Level II Level III Total Level I Level II Level III Total Derivative instruments, net $ — $ (14,499 ) $ — $ (14,499 ) $ — $ (5,644 ) $ — $ (5,644 ) |
Securities
Securities | 3 Months Ended |
Mar. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities | Securities The Company previously held CMBS, all of which were sold in 2017. During the three months ended March 31, 2017 , the Company sold CMBS resulting in a net realized loss of $1.0 million. During the three months ended March 31, 2017, the Company recorded interest income from securities of $6.1 million , of which $2.8 million was interest income from CMBS (Held-to-Maturity) and $3.3 million of CMBS (Fair Value Option). To conform to the 2018 presentation of the condensed consolidated statement of cash flows, the Company reclassified $69.2 million of proceeds from sale of securities, $0.8 million of principal payments received on securities, CMBS (Held-to-Maturity) and $0.03 million of principal payments received on CMBS (Fair Value Option) and combined into payments and proceeds received on securities. |
Commercial Mortgage and Subordi
Commercial Mortgage and Subordinate Loans, Net | 3 Months Ended |
Mar. 31, 2018 | |
Mortgage Loans on Real Estate [Abstract] | |
Loans | Commercial Mortgage and Subordinate Loans, Net The Company’s loan portfolio was comprised of the following at March 31, 2018 and December 31, 2017 ($ in thousands): Loan Type March 31, 2018 December 31, 2017 Commercial mortgage loans, net $ 3,029,240 $ 2,653,826 Subordinate loans, net 1,038,254 1,025,932 Total loans, net $ 4,067,494 $ 3,679,758 The Company's loan portfolio consisted of 89% and 88% floating rate loans, based on amortized cost, as of March 31, 2018 and December 31, 2017, respectively. Activity relating to our loan investment portfolio was as follows ($ in thousands): Principal Balance Deferred Fees/Other Items (1) Provision for Loan Loss (2) Carrying Value December 31, 2017 $ 3,706,169 $ (9,430 ) $ (16,981 ) $ 3,679,758 New loan fundings 488,638 — — 488,638 Add-on loan fundings 18,393 — — 18,393 Loan repayments (137,947 ) — — (137,947 ) Unrealized gain (loss) on foreign currency translation 13,555 (113 ) — 13,442 Deferred fees and other items (1) — (11,561 ) — (11,561 ) PIK interest, amortization of fees and other items (1) 10,564 6,207 — 16,771 March 31, 2018 $ 4,099,372 $ (14,897 ) $ (16,981 ) $ 4,067,494 ——————— (1) Other items primarily consist of purchase discounts or premiums, exit fees and deferred origination expenses. (2) In addition to the $17.0 million provision for loan loss, the Company recorded an impairment of $3.0 million against an investment previously recorded under other assets on the Company's consolidated balance sheet. The following table details overall statistics for our loan portfolio ($ in thousands): March 31, 2018 December 31, 2017 Number of loans 63 59 Principal balance $ 4,099,372 $ 3,706,169 Carrying value $ 4,067,494 $ 3,679,758 Unfunded loan commitments (1) $ 852,508 $ 435,627 Weighted-average cash coupon (2) 8.6 % 8.4 % ——————— (1) Unfunded loan commitments are primarily funded to finance property improvements or lease-related expenditures by the borrowers. These future commitments are funded over the term of each loan, subject in certain cases to an expiration date. (2) For floating rate loans, based on applicable benchmark rates as of the specified dates. The table below details the property type of the properties securing the loans in our portfolio ($ in thousands): March 31, 2018 December 31, 2017 Property Type Carrying % of Carrying % of Predevelopment $710,992 17.5% $654,736 17.8% Residential - for sale 704,020 17.3% 442,177 12.0% Hotel 654,631 16.1% 645,056 17.6% Office 584,990 14.4% 513,830 14.0% Residential Rental 467,605 11.5% 465,057 12.6% Mixed Use 356,079 8.7% 354,640 9.6% Retail Center 199,463 4.9% 198,913 5.4% Healthcare 158,292 3.9% 173,870 4.7% Other 154,084 3.8% 154,141 4.2% Industrial 77,338 1.9% 77,338 2.1% $4,067,494 100.0% $3,679,758 100.0% The table below details the geographic distribution of the properties securing the loans in our portfolio ($ in thousands): March 31, 2018 December 31, 2017 Geographic Location Carrying % of Carrying % of Manhattan, NY $1,209,678 29.7% $1,173,833 31.9% Brooklyn, NY 358,425 8.8% 357,611 9.7% Northeast 107,671 2.7% 100,536 2.7% Midwest 737,780 18.1% 683,380 18.6% Southeast 447,450 11.0% 531,582 14.4% West 270,170 6.6% 227,024 6.2% Mid Atlantic 182,320 4.5% 191,976 5.2% Southwest 33,384 0.8% 33,615 0.9% United Kingdom 645,338 15.9% 303,488 8.3% Other International 75,278 1.9% 76,713 2.1% Total $4,067,494 100.0% $3,679,758 100.0% The Company assesses the risk factors of each loan, and assigns a risk rating based on a variety of factors, including, without limitation, loan-to-value ratio ("LTV"), debt yield, property type, geographic and local market dynamics, physical condition, cash flow volatility, leasing and tenant profile, loan structure and exit plan, and project sponsorship. This review is performed quarterly. Based on a 5-point scale, our loans are rated “1” through “5,” from less risk to greater risk, which ratings are defined as follows: 1. Very low risk 2. Low risk 3. Moderate/average risk 4. High risk/potential for loss: a loan that has a risk of realizing a principal loss 5. Impaired/loss likely: a loan that has a high risk of realizing principal loss, has incurred principal loss or has been impaired The following table allocates the carrying value of our loan portfolio based on the Company's internal risk ratings ($ in thousands): March 31, 2018 December 31, 2017 Risk Rating Number of Loans Carrying Value % of Loan Portfolio Number of Loans Carrying Value % of Loan Portfolio 1 — $ — — % — $ — — % 2 6 395,212 10 % 5 399,326 10 % 3 54 3,431,086 84 % 51 3,034,358 83 % 4 1 168,677 4 % 1 168,208 5 % 5 2 72,519 2 % 2 77,866 2 % 63 $ 4,067,494 100 % 59 $ 3,679,758 100 % The Company evaluates its loans for possible impairment on a quarterly basis. The Company regularly evaluates the extent and impact of any credit deterioration associated with the performance and/or value of the underlying collateral property as well as the financial and operating capability of the borrower/sponsor on a loan by loan basis. Specifically, a property’s operating results and any cash reserves are analyzed and used to assess (i) whether cash 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 property’s liquidation value. The Company also evaluates the financial wherewithal of any loan guarantors as well as the borrower’s competency in managing and operating the properties. In addition, the Company considers the overall economic environment, real estate sector and geographic sub-market in which the borrower operates. Such loan loss analysis is completed and reviewed by asset management and finance personnel who utilize various data sources, including (i) periodic financial data such as debt service coverage ratio, property 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. An allowance for loan loss is established when it is deemed probable that the Company will not be able to collect all amounts due according to the contractual terms of the loan. During 2017, the Company recorded a loan loss provision of $2.0 million on a commercial mortgage loan secured by fully-built, for-sale residential condominium units located in Bethesda, MD. In addition to the $2.0 million provision for loan loss, the Company recorded an impairment of $3.0 million on a related investment previously recorded under other assets on the Company's condensed consolidated balance sheet. The loan loss provision and impairment were based on the difference between fair value of the underlying collateral, and the carrying value of the loan (prior to the loan loss provision and related impairment). Fair value of the collateral was determined using a discounted cash flow analysis. The significant unobservable inputs used in determining the collateral value were sales price per square foot and discount rate which were an average of $678 dollars per square foot across properties and 15% , respectively. Effective April 1, 2017, the Company ceased accruing all interest associated with the loan and accounts for the loan on a cost-recovery basis (all proceeds are applied towards the loan balance). As of March 31, 2018 and December 31, 2017 , this was assigned a risk rating of 5. During 2016, the Company recorded a loan loss provision of $10.0 million on a commercial mortgage loan and $5.0 million on a contiguous subordinate loan secured by a multifamily property located in Williston, ND. The loan loss provision was based on the difference between fair value of the underlying collateral, and the carrying value of the loan (prior to the loan loss provision). Fair value of the collateral was determined using a discounted cash flow analysis. The significant unobservable inputs used in determining the collateral value were terminal capitalization rate and discount rate which were 11% and 10% , respectively. The Company ceased accruing payment in kind ("PIK") interest associated with the loan and recognizing interest income upon receipt of cash. As of March 31, 2018 and December 31, 2017 , this was assigned a risk rating of 5. As of March 31, 2018 and December 31, 2017 , the aggregate loan loss provision was $12.0 million and $5.0 million for commercial mortgage loans and subordinate loans, respectively. For the three months ended March 31, 2018 and March 31, 2017 , the Company recognized PIK interest of $10.6 million and $7.9 million, respectively. For the three months ended March 31, 2018 and March 31, 2017 , the Company did not receive any pre-payment penalties or accelerated fees. Loan Proceeds Held by Servicer Loan proceeds held by servicer represents principal payments held by the Company's third-party loan servicer as of the balance sheet date which were remitted to us subsequent to the balance sheet date. Loan proceeds held by servicer was $30.3 million and $302.8 million as of March 31, 2018 and December 31, 2017 , respectively. |
Loan Proceeds Held by Servicer
Loan Proceeds Held by Servicer | 3 Months Ended |
Mar. 31, 2018 | |
Receivables [Abstract] | |
Loans | Commercial Mortgage and Subordinate Loans, Net The Company’s loan portfolio was comprised of the following at March 31, 2018 and December 31, 2017 ($ in thousands): Loan Type March 31, 2018 December 31, 2017 Commercial mortgage loans, net $ 3,029,240 $ 2,653,826 Subordinate loans, net 1,038,254 1,025,932 Total loans, net $ 4,067,494 $ 3,679,758 The Company's loan portfolio consisted of 89% and 88% floating rate loans, based on amortized cost, as of March 31, 2018 and December 31, 2017, respectively. Activity relating to our loan investment portfolio was as follows ($ in thousands): Principal Balance Deferred Fees/Other Items (1) Provision for Loan Loss (2) Carrying Value December 31, 2017 $ 3,706,169 $ (9,430 ) $ (16,981 ) $ 3,679,758 New loan fundings 488,638 — — 488,638 Add-on loan fundings 18,393 — — 18,393 Loan repayments (137,947 ) — — (137,947 ) Unrealized gain (loss) on foreign currency translation 13,555 (113 ) — 13,442 Deferred fees and other items (1) — (11,561 ) — (11,561 ) PIK interest, amortization of fees and other items (1) 10,564 6,207 — 16,771 March 31, 2018 $ 4,099,372 $ (14,897 ) $ (16,981 ) $ 4,067,494 ——————— (1) Other items primarily consist of purchase discounts or premiums, exit fees and deferred origination expenses. (2) In addition to the $17.0 million provision for loan loss, the Company recorded an impairment of $3.0 million against an investment previously recorded under other assets on the Company's consolidated balance sheet. The following table details overall statistics for our loan portfolio ($ in thousands): March 31, 2018 December 31, 2017 Number of loans 63 59 Principal balance $ 4,099,372 $ 3,706,169 Carrying value $ 4,067,494 $ 3,679,758 Unfunded loan commitments (1) $ 852,508 $ 435,627 Weighted-average cash coupon (2) 8.6 % 8.4 % ——————— (1) Unfunded loan commitments are primarily funded to finance property improvements or lease-related expenditures by the borrowers. These future commitments are funded over the term of each loan, subject in certain cases to an expiration date. (2) For floating rate loans, based on applicable benchmark rates as of the specified dates. The table below details the property type of the properties securing the loans in our portfolio ($ in thousands): March 31, 2018 December 31, 2017 Property Type Carrying % of Carrying % of Predevelopment $710,992 17.5% $654,736 17.8% Residential - for sale 704,020 17.3% 442,177 12.0% Hotel 654,631 16.1% 645,056 17.6% Office 584,990 14.4% 513,830 14.0% Residential Rental 467,605 11.5% 465,057 12.6% Mixed Use 356,079 8.7% 354,640 9.6% Retail Center 199,463 4.9% 198,913 5.4% Healthcare 158,292 3.9% 173,870 4.7% Other 154,084 3.8% 154,141 4.2% Industrial 77,338 1.9% 77,338 2.1% $4,067,494 100.0% $3,679,758 100.0% The table below details the geographic distribution of the properties securing the loans in our portfolio ($ in thousands): March 31, 2018 December 31, 2017 Geographic Location Carrying % of Carrying % of Manhattan, NY $1,209,678 29.7% $1,173,833 31.9% Brooklyn, NY 358,425 8.8% 357,611 9.7% Northeast 107,671 2.7% 100,536 2.7% Midwest 737,780 18.1% 683,380 18.6% Southeast 447,450 11.0% 531,582 14.4% West 270,170 6.6% 227,024 6.2% Mid Atlantic 182,320 4.5% 191,976 5.2% Southwest 33,384 0.8% 33,615 0.9% United Kingdom 645,338 15.9% 303,488 8.3% Other International 75,278 1.9% 76,713 2.1% Total $4,067,494 100.0% $3,679,758 100.0% The Company assesses the risk factors of each loan, and assigns a risk rating based on a variety of factors, including, without limitation, loan-to-value ratio ("LTV"), debt yield, property type, geographic and local market dynamics, physical condition, cash flow volatility, leasing and tenant profile, loan structure and exit plan, and project sponsorship. This review is performed quarterly. Based on a 5-point scale, our loans are rated “1” through “5,” from less risk to greater risk, which ratings are defined as follows: 1. Very low risk 2. Low risk 3. Moderate/average risk 4. High risk/potential for loss: a loan that has a risk of realizing a principal loss 5. Impaired/loss likely: a loan that has a high risk of realizing principal loss, has incurred principal loss or has been impaired The following table allocates the carrying value of our loan portfolio based on the Company's internal risk ratings ($ in thousands): March 31, 2018 December 31, 2017 Risk Rating Number of Loans Carrying Value % of Loan Portfolio Number of Loans Carrying Value % of Loan Portfolio 1 — $ — — % — $ — — % 2 6 395,212 10 % 5 399,326 10 % 3 54 3,431,086 84 % 51 3,034,358 83 % 4 1 168,677 4 % 1 168,208 5 % 5 2 72,519 2 % 2 77,866 2 % 63 $ 4,067,494 100 % 59 $ 3,679,758 100 % The Company evaluates its loans for possible impairment on a quarterly basis. The Company regularly evaluates the extent and impact of any credit deterioration associated with the performance and/or value of the underlying collateral property as well as the financial and operating capability of the borrower/sponsor on a loan by loan basis. Specifically, a property’s operating results and any cash reserves are analyzed and used to assess (i) whether cash 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 property’s liquidation value. The Company also evaluates the financial wherewithal of any loan guarantors as well as the borrower’s competency in managing and operating the properties. In addition, the Company considers the overall economic environment, real estate sector and geographic sub-market in which the borrower operates. Such loan loss analysis is completed and reviewed by asset management and finance personnel who utilize various data sources, including (i) periodic financial data such as debt service coverage ratio, property 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. An allowance for loan loss is established when it is deemed probable that the Company will not be able to collect all amounts due according to the contractual terms of the loan. During 2017, the Company recorded a loan loss provision of $2.0 million on a commercial mortgage loan secured by fully-built, for-sale residential condominium units located in Bethesda, MD. In addition to the $2.0 million provision for loan loss, the Company recorded an impairment of $3.0 million on a related investment previously recorded under other assets on the Company's condensed consolidated balance sheet. The loan loss provision and impairment were based on the difference between fair value of the underlying collateral, and the carrying value of the loan (prior to the loan loss provision and related impairment). Fair value of the collateral was determined using a discounted cash flow analysis. The significant unobservable inputs used in determining the collateral value were sales price per square foot and discount rate which were an average of $678 dollars per square foot across properties and 15% , respectively. Effective April 1, 2017, the Company ceased accruing all interest associated with the loan and accounts for the loan on a cost-recovery basis (all proceeds are applied towards the loan balance). As of March 31, 2018 and December 31, 2017 , this was assigned a risk rating of 5. During 2016, the Company recorded a loan loss provision of $10.0 million on a commercial mortgage loan and $5.0 million on a contiguous subordinate loan secured by a multifamily property located in Williston, ND. The loan loss provision was based on the difference between fair value of the underlying collateral, and the carrying value of the loan (prior to the loan loss provision). Fair value of the collateral was determined using a discounted cash flow analysis. The significant unobservable inputs used in determining the collateral value were terminal capitalization rate and discount rate which were 11% and 10% , respectively. The Company ceased accruing payment in kind ("PIK") interest associated with the loan and recognizing interest income upon receipt of cash. As of March 31, 2018 and December 31, 2017 , this was assigned a risk rating of 5. As of March 31, 2018 and December 31, 2017 , the aggregate loan loss provision was $12.0 million and $5.0 million for commercial mortgage loans and subordinate loans, respectively. For the three months ended March 31, 2018 and March 31, 2017 , the Company recognized PIK interest of $10.6 million and $7.9 million, respectively. For the three months ended March 31, 2018 and March 31, 2017 , the Company did not receive any pre-payment penalties or accelerated fees. Loan Proceeds Held by Servicer Loan proceeds held by servicer represents principal payments held by the Company's third-party loan servicer as of the balance sheet date which were remitted to us subsequent to the balance sheet date. Loan proceeds held by servicer was $30.3 million and $302.8 million as of March 31, 2018 and December 31, 2017 , respectively. |
Other Assets
Other Assets | 3 Months Ended |
Mar. 31, 2018 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets | Other Assets The following table details the components of the Company's other assets ($ in thousands): March 31, 2018 December 31, 2017 Interest receivable $ 25,548 $ 23,101 Collateral deposited under derivative agreements 20,150 4,930 Other 389 389 Total $ 46,087 $ 28,420 |
Secured Debt Arrangements, Net
Secured Debt Arrangements, Net | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Secured Debt Arrangements, Net | Secured Debt Arrangements, Net At March 31, 2018 and December 31, 2017 , the Company’s borrowings had the following secured debt arrangements, maturities and weighted average interest rates ($ in thousands): March 31, 2018 December 31, 2017 Maximum Amount of Borrowings Borrowings Outstanding Maturity (1) Weighted (2) Maximum Amount of Borrowings Borrowings Outstanding Maturity (1) Weighted (2) JPMorgan Facility (3) $ 1,382,000 $ 800,535 March 2020 USD L + 2.30% $ 1,393,000 $ 944,529 March 2020 USD L + 2.30% DB Repurchase Facility (USD) (4) 402,390 157,460 March 2020 USD L + 2.48% 472,090 225,367 March 2020 USD L + 2.56% DB Repurchase Facility (GBP) (4) 165,766 165,766 March 2020 GBP L + 2.60% 93,919 93,919 March 2020 GBP L + 2.60% Goldman Facility (5) 327,750 103,025 November 2020 USD L + 2.57% 331,130 81,380 November 2020 USD L + 2.73% Sub-total 2,277,906 1,226,786 2,290,139 1,345,195 less: deferred financing costs N/A (14,037 ) N/A N/A (14,348 ) N/A Total / Weighted Average $ 2,277,906 $ 1,212,749 USD L + 2.35% / $ 2,290,139 $ 1,330,847 USD L + 2.37% / GBP L + 2.60% GBP L + 2.60% ——————— (1) Maturity date assumes extensions at the Company's option are exercised. (2) Based on applicable benchmark rates as of the specified dates on floating rate debt. (3) As of March 31, 2018 , the Company's secured debt arrangement with JPMorgan Chase Bank, National Association (the "JPMorgan Facility") provided for maximum total borrowings comprised of a $1.3 billion repurchase facility and $132.0 million of an asset specific financing. (4) As of March 31, 2018 , the Company's secured debt arrangement with Deutsche Bank AG, Cayman Islands Branch and Deutsche Bank AG, London Branch (the "DB Repurchase Facility") provided for maximum total borrowings comprised of a $450.0 million repurchase facility and $55.1 million and £45.0 million of asset specific financings. (5) As of March 31, 2018 , the Company's secured debt arrangement with Goldman Sachs Bank USA (the "Goldman Facility") provided for maximum total borrowings comprised of a $300.0 million repurchase facility and $27.8 million of an asset specific financing. At March 31, 2018 , the Company’s borrowings had the following remaining maturities ($ in thousands): Less than (1) 1 to 3 (1) 3 to 5 More than Total JPMorgan Facility $ 132,715 $ 667,820 $ — $ — $ 800,535 DB Repurchase Facility 131,419 191,807 — — 323,226 Goldman Facility — 103,025 — — 103,025 Total $ 264,134 $ 962,652 $ — $ — $ 1,226,786 ——————— (1) Assumes underlying assets are financed through the fully extended maturity date of the facility. The table below summarizes the outstanding balances at March 31, 2018 , as well as the maximum and average month-end balances for the three months ended March 31, 2018 for the Company's borrowings under secured debt arrangements ($ in thousands). For the three months ended March 31, 2018 Balance at Amortized Cost of Collateral at March 31, 2018 Maximum Month-End Average Month-End JPMorgan Facility $ 800,535 $ 1,372,877 $ 914,040 $ 786,087 DB Repurchase Facility 323,226 623,006 329,689 326,536 Goldman Facility 103,025 180,243 103,025 87,312 Total $ 1,226,786 $ 2,176,126 JPMorgan Facility The Company, through two indirect wholly owned subsidiaries, entered into the amended and restated JPMorgan Facility, which was upsized in October 2017, and provides for maximum total borrowing capacity of $ 1.4 billion, comprised of a $ 1.25 billion repurchase facility and a $ 132.0 million asset specific financing. The facility has a term expiring in March 2019 plus a one -year extension option available at the Company's option, subject to certain conditions. Amounts borrowed under the JPMorgan Facility bear interest at spreads ranging from 2.25% to 2.75 % over one-month LIBOR. Margin calls may occur any time at specified aggregate margin deficit thresholds. The Company has agreed to provide a limited guarantee of the obligations of its indirect wholly-owned subsidiaries under the JPMorgan Facility. As of March 31, 2018 , the Company had $800.5 million of borrowings outstanding under the JPMorgan Facility secured by certain of the Company's commercial mortgage loans. DB Repurchase Facility The Company, through indirect wholly-owned subsidiaries, entered into the amended and restated DB Repurchase Facility which provides for maximum total borrowings of $568.2 million comprised of: (i) a repurchase facility of $450.0 million, of which we have borrowed $102.4 million and £73.3 million and (ii) $55.1 million and £45.0 million of asset specific financings in connection with financing first mortgage loans secured by real estate. The repurchase facility matures in March 201 9 with one one -year extension option available at the Company's option, subject to certain conditions, while the asset specific financings mature in October 2018. Amounts borrowed under the DB Repurchase Facility bear interest at spreads ranging from 2.10% to 3.00% over one-month USD LIBOR and 2.60% over three-month GBP LIBOR. Margin calls may occur any time at specified aggregate margin deficit thresholds. The Company has agreed to provide a guarantee of the obligations of its indirect wholly-owned subsidiaries under this facility. As of March 31, 2018 , the Company had $ 323.2 million (including £ 118.3 million) of borrowings outstanding under the DB Repurchase Facility secured by certain of the Company's commercial mortgage loans. Goldman Facility The Company, through an indirect wholly-owned subsidiary, entered into the Goldman Facility, which provides for advances of up to $327.8 million (as of March 31, 2018 ) comprised of a $300.0 million repurchase facility (entered into in November 2017) and $27.8 million of an asset specific financing (entered into in January 2015). The repurchase facility matures in November 2020, while the asset specific financing matures in April 2019. Amounts borrowed under the Goldman Facility bear interest at spreads ranging from 2.20% to 3.50% over one-month LIBOR. Margin calls may occur any time at specified margin deficit thresholds. The Company has agreed to provide a limited guarantee of the obligations of the seller under the Goldman Facility. As of March 31, 2018 , the Company had total borrowings of $103.0 million, including $75.2 million of borrowings outstanding under the repurchase facility and $27.8 million of borrowings secured by one commercial mortgage loan held by the Company. The Company was in compliance with the financial covenants under each of its secured debt arrangements at March 31, 2018 and December 31, 2017 . |
Convertible Senior Notes, Net
Convertible Senior Notes, Net | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Convertible Senior Notes, Net | Convertible Senior Notes, Net On March 17, 2014, the Company issued $143.8 million aggregate principal amount of 5.50% Convertible Senior Notes due 2019 (the "March 2019 Notes"), for which the Company received net proceeds, after deducting the underwriting discount and estimated offering expense payable by the Company, of approximately $139.0 million . At March 31, 2018 , the March 2019 Notes had a carrying value of $142.7 million and an unamortized discount of $1.1 million. On August 18, 2014, the Company issued an additional $111.0 million aggregate principal amount of 5.50% Convertible Senior Notes due 2019 (the "August 2019 Notes," and together with the March 2019 Notes, the "2019 Notes"), for which the Company received net proceeds, after deducting the underwriting discount and estimated offering expense payable by the Company, of approximately $109.6 million. At March 31, 2018 , the August 2019 Notes had a carrying value of $109.7 million and an unamortized discount of $1.3 million. On August 21, 2017, the Company issued an aggregate principal amount of $230.0 million of 4.75% Convertible Senior Notes due 2022 (the "August 2022 Notes"), for which the Company received net proceeds, after deducting the underwriting discount and estimated offering expense payable by the Company, of approximately $224.8 million. At March 31, 2018 , the August 2022 Notes had a carrying value of $221.3 million and an unamortized discount of $8.7 million. On November 9, 2017, the Company issued an aggregate principal amount of $115.0 million of 4.75% Convertible Senior Notes due 2022 (the "November 2022 Notes," and together with the August 2022 Notes, the "2022 Notes" and the 2022 Notes together with the 2019 Notes, "the Notes"), for which the Company received net proceeds, after deducting the underwriting discount and estimated offering expense payable by the Company of approximately $112.7 million. At March 31, 2018 , the November 2022 Notes had a carrying value of $112.2 million and an unamortized discount of $2.8 million. The following table summarizes the terms of the Notes ($ in thousands): Principal Amount Coupon Rate Effective Rate (1) Conversion Rate (2) Maturity Date Remaining Period of Amortization 2019 Notes $ 254,750 5.50 % 6.36 % 57.6745 3/15/2019 0.95 years 2022 Notes 345,000 4.75 % 5.61 % 50.2260 8/23/2022 4.40 years Total $ 599,750 ——————— (1) Effective rate includes the effect of the adjustment for the conversion option (See endnote (2) below), the value of which reduced the initial liability and was recorded in additional paid-in-capital. (2) The Company has the option to settle any conversions in cash, shares of common stock or a combination thereof. The conversion rate represents the number of shares of common stock issuable per $1.0 million principal amount of the Notes converted, and includes adjustments relating to cash dividend payments made by the Company to stockholders that have been deferred and carried-forward in accordance with, and are not yet required to be made pursuant to, the terms of the applicable supplemental indenture. The Company may not redeem the Notes prior to maturity. The closing price of the Company's common stock on March 29, 2018 of $17.98 was greater than the per share conversion price of the 2019 Notes and less than the per share conversion price of the 2022 Notes. The Company has the intent and ability to settle the Notes in cash and, as a result, the Notes did not have any impact on the Company's diluted earnings per share. In accordance with ASC 470 the liability and equity components of convertible debt instruments that may be settled in cash upon conversion (including partial cash settlement) is to be separately accounted for in a manner that reflects the issuer’s nonconvertible debt borrowing rate. GAAP requires that the initial proceeds from the sale of the Notes be allocated between a liability component and an equity component in a manner that reflects interest expense at the interest rate of similar nonconvertible debt that could have been issued by the Company at such time. The Company measured the fair value of the debt components of the Notes as of their issuance date based on effective interest rates. As a result, the Company attributed approximately $22.4 million of the proceeds to the equity component of the Notes ( $11.4 million to the 2019 Notes and $11.0 million to the 2022 Notes), which represents the excess proceeds received over the fair value of the liability component of the Notes at the date of issuance. The equity component of the Notes has been reflected within additional paid-in capital in the condensed consolidated balance sheet as of March 31, 2018 . The resulting debt discount is being amortized over the period during which the Notes are expected to be outstanding (the maturity date) as additional non-cash interest expense. The additional non-cash interest expense attributable to each of the Notes will increase in subsequent reporting periods through the maturity date as the Notes accrete to their par value over the same period. The aggregate contractual interest expense was approximately $7.6 million and $3.5 million for the three months ended March 31, 2018 and 2017, respectively. With respect to the amortization of the discount on the liability component of the Notes as well as the amortization of deferred financing costs, the Company reported additional non-cash interest expense of approximately $1.8 million and $0.9 million for the three months ended March 31, 2018 and 2017, respectively. |
Derivatives, Net
Derivatives, Net | 3 Months Ended |
Mar. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives, Net | Derivatives, Net The Company uses forward currency contracts to economically hedge interest and principal payments due under its loans denominated in currencies other than U.S. dollars. The Company has entered into a series of forward contracts to sell an amount of foreign currency (British pound ("GBP")) for an agreed upon amount of U.S. dollars at various dates through November 2020. These forward contracts were executed to economically fix the U.S. dollar amounts of foreign denominated cash flows expected to be received by the Company related to foreign denominated loan investments. The following table summarizes the Company's non-designated foreign exchange (“Fx”) forwards as of March 31, 2018 : Type of Derivative March 31, 2018 Number of Contracts Aggregate Notional Amount (in thousands) Notional Currency Maturity Fx Contracts - GBP 31 467,737 GBP April 2018 - November 2020 The following table summarizes the Company's non-designated Fx forwards as of December 31, 2017 : Type of Derivative December 31, 2017 Number of Contracts Aggregate Notional Amount (in thousands) Notional Currency Maturity Fx Contracts - GBP 24 177,077 GBP January 2018- November 2020 The Company has not designated any of its derivative instruments as hedges as defined in ASC 815, Derivatives and Hedging and, therefore, changes in the fair value of the Company's derivative instruments are recorded directly in earnings. The following table summarizes the amounts recognized on the condensed consolidated statements of operations related to the Company’s derivatives for the three months ended March 31, 2018 and 2017 ($ in thousands): Amount of gain (loss) recognized in income Three months ended March 31, Location of (Gain) Loss Recognized in Income 2018 2017 Forward currency contracts Loss on derivative instruments - unrealized $ (8,859 ) $ (2,883 ) Forward currency contracts Loss on derivative instruments - realized (2,177 ) (156 ) Interest rate caps (1) Gain (loss) on derivative instruments - unrealized 4 (6 ) Total $ (11,032 ) $ (3,045 ) ——————— (1) With a notional amount of $38.9 million and $44.2 million at March 31, 2018 , and 2017 , respectively. The following table summarizes the gross asset and liability amounts related to the Company’s derivatives at March 31, 2018 and December 31, 2017 ($ in thousands). March 31, 2018 December 31, 2017 Gross Gross Net Amounts Gross Gross Net Amounts Interest rate caps $ — $ 5 $ 5 $ — $ 1 $ 1 Forward currency contracts (18,777 ) 4,273 (14,504 ) (5,645 ) — (5,645 ) Total derivative instruments $ (18,777 ) $ 4,278 $ (14,499 ) $ (5,645 ) $ 1 $ (5,644 ) |
Accounts Payable, Accrued Expen
Accounts Payable, Accrued Expenses and Other Liabilities | 3 Months Ended |
Mar. 31, 2018 | |
Payables and Accruals [Abstract] | |
Accounts Payable, Accrued Expenses and Other Liabilities | Accounts Payable, Accrued Expenses and Other Liabilities The following table details the components of the Company's accounts payable, accrued expense and other liabilities ($ in thousands): March 31, 2018 December 31, 2017 Accrued dividends payable $ 63,598 $ 56,576 Accrued interest payable 5,336 12,796 Accounts payable and other liabilities 4,396 1,534 Total $ 73,330 $ 70,906 |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Management Agreement In connection with the Company’s initial public offering in September 2009, the Company entered into a management agreement (the “Management Agreement”) with the Manager, which describes the services to be provided by the Manager and its compensation for those services. The Manager is responsible for managing the Company’s day-to-day operations, subject to the direction and oversight of the Company’s board of directors. Pursuant to the terms of the Management Agreement, the Manager is paid a base management fee equal to 1.5% per annum of the Company’s stockholders’ equity (as defined in the Management Agreement), calculated and payable (in cash) quarterly in arrears. The current term of the Management Agreement expires on September 29, 2018 and is automatically renewed for successive one -year terms on each anniversary thereafter. The Management Agreement may be terminated upon expiration of the one -year extension term only upon the affirmative vote of at least two-thirds of the Company’s independent directors, based upon (1) unsatisfactory performance by the Manager that is materially detrimental to the Company or (2) a determination that the management fee payable to the Manager is not fair, subject to the Manager’s right to prevent such a termination based on unfair fees by accepting a mutually acceptable reduction of management fees agreed to by at least two-thirds of the Company’s independent directors. The Manager must be provided with written notice of any such termination at least 180 days prior to the expiration of the then existing term and will be paid a termination fee equal to three times the sum of the average annual base management fee during the 24 -month period immediately preceding the date of termination, calculated as of the end of the most recently completed fiscal quarter prior to the date of termination. Following a meeting by the Company’s independent directors in February 2018, which included a discussion of the Manager’s performance and the level of the management fees thereunder, the Company determined not to seek termination of the Management Agreement. For the three months ended March 31, 2018 and 2017 , the Company incurred approximately $8.1 million and $7.4 million, respectively, in base management fees under the Management Agreement. In addition to the base management fee, the Company is also responsible for reimbursing the Manager for certain expenses paid by the Manager on behalf of the Company or for certain services provided by the Manager to the Company. For the three months ended March 31, 2018 and 2017 , the Company paid expenses totaling $0.6 million and $0.1 million , respectively, related to reimbursements for certain expenses paid by the Manager on behalf of the Company under the Management Agreement. Expenses incurred by the Manager and reimbursed by the Company are reflected in the respective condensed consolidated statement of operations expense category or the condensed consolidated balance sheet based on the nature of the item. Included in payable to related party on the condensed consolidated balance sheet at March 31, 2018 and December 31, 2017 are approximately $8.1 million and $7.4 million, respectively, for base management fees incurred but not yet paid under the Management Agreement. Unconsolidated Joint Venture In September 2014, the Company, through a wholly owned subsidiary, acquired a 59% ownership interest in Champ Limited Partnership ("Champ LP") following which a wholly-owned subsidiary of Champ LP then acquired a 35% ownership interest in Bremer Kreditbank AG ("BKB"). In May 2017, the Company sold its remaining ownership interest in Champ LP, to unaffiliated third parties. As such, in 2018 the Company no longer held any interest in Champ LP. Loans receivable In June, 2017, the Company increased its outstanding loan commitment through the acquisition of an additional $25.0 million of interests in an existing subordinate loan from a fund managed by an affiliate of the Manager, increasing the Company's total outstanding loan commitment to $100.0 million . Furthermore, in September 2017 the Company funded an additional $25.0 million to acquire a portion of the same pre-development subordinate loan from a fund managed by an affiliate of the Manager, increasing the Company's total outstanding loan commitment to $125.0 million . The pre-development subordinate loan is for the construction of a residential condominium building in New York, New York and is part of a $300.0 million subordinate loan. |
Share-Based Payments
Share-Based Payments | 3 Months Ended |
Mar. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Payments | Share-Based Payments On September 23, 2009, the Company’s board of directors approved the Apollo Commercial Real Estate Finance, Inc., 2009 Equity Incentive Plan (as amended from time to time, the “LTIP”). The LTIP provides for grants of restricted common stock, restricted stock units (“RSUs”) and other equity-based awards up to an aggregate of 7.5% of the issued and outstanding shares of the Company’s common stock (on a fully diluted basis). The LTIP is administered by the compensation committee of the Company’s board of directors (the “Compensation Committee”) and all grants under the LTIP must be approved by the Compensation Committee. The Company recognized stock-based compensation expense of $3.3 million and $3.8 million for the three months ended March 31, 2018 and 2017, respectively, related to restricted stock and RSU vesting. The following table summarizes the grants, vesting and forfeitures of restricted common stock and RSUs during the three months ended March 31, 2018 : Type Restricted Stock RSUs Grant Date Fair Value ($) Outstanding at December 31, 2017 105,561 1,632,746 Vested (2,749 ) — n/a Outstanding at March 31, 2018 102,812 1,632,746 Below is a summary of restricted stock and RSU vesting dates as of March 31, 2018 : Vesting Year Restricted Stock RSU Total Awards 2018 65,185 758,505 823,690 2019 32,733 569,909 602,642 2020 4,894 304,332 309,226 Total 102,812 1,632,746 1,735,558 At March 31, 2018 , the Company had unrecognized compensation expense of approximately $1.3 million and $26.0 million, respectively, related to the vesting of restricted stock awards and RSUs noted in the table above. RSU Deliveries During the three months ended March 31, 2018 , the Company delivered 345,996 shares of common stock for 603,677 vested RSUs. The Company allows RSU participants to settle their tax liabilities with a reduction of their share delivery from the originally granted and vested RSUs. The amount, when agreed to by the participant, results in a cash payment to the Manager related to this tax liability and a corresponding adjustment to additional paid in capital on the condensed consolidated statement of changes in stockholders' equity. The adjustment was $4.7 million for the three months ended March 31, 2018 , and is included as a reduction of capital related to the Company's equity incentive plan in the condensed consolidated statement of changes in stockholders' equity. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity The Company’s authorized capital stock consists of 450,000,000 shares of common stock, $0.01 par value per share and 50,000,000 shares of preferred stock, $0.01 par value per share. As of March 31, 2018 , 122,992,231 shares of common stock were issued and outstanding, 6,770,393 shares of 8.00% Fixed-to-Floating Series B Cumulative Redeemable Perpetual Preferred Stock ("Series B Preferred Stock") were issued and outstanding and 6,900,000 shares of 8.00% Series C Cumulative Redeemable Perpetual Preferred Stock ("Series C Preferred Stock") were issued and outstanding. Dividends. During the three months ended March 31, 2018 , the Company declared the following dividends: Dividend declared per share of: Common Stock $0.46 Series B Preferred Stock 0.50 Series C Preferred Stock 0.50 Common Stock Offerings. During the first quarter of 2018, the Company completed a follow-on public offering of 15,525,000 shares of its common stock, at a price of $17.77 per share. The aggregate net proceeds from the offering, including proceeds from the sale of the additional shares, were approximately $275.9 million after deducting estimated offering expenses. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Legal Proceedings. From time to time, the Company may be involved in various claims and legal actions arising in the ordinary course of business. On January 4, 2017, the United States Department of Justice served a Request for Information and Documents (the “Request”) on the Company, in connection with a preliminary investigation into certain aspects of the Company's former residential real estate portfolio, which the Company acquired in connection with the merger of Apollo Residential Mortgage, Inc. with and into the Company and subsequently sold in 2016. The Request seeks a range of information in connection with the residential real estate portfolio, including, among other things, information concerning policies, procedures, and practices related to advertising, marketing, identifying, or acquiring residential properties for sale or rent, and various data for all rental and sales contracts executed since January 1, 2012. The Company is cooperating with the Department of Justice and fully complying with the Request. Loan Commitments. As described in "Note 5 - Commercial Mortgage and Subordinate Loans, Net," at March 31, 2018 , the Company had $852.5 million of unfunded commitments related to its commercial mortgage and subordinate loan portfolios. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2018 | |
Financial Instruments Disclosure [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The following table presents the carrying value and estimated fair value of the Company’s financial instruments not carried at fair value on the condensed consolidated balance sheet at March 31, 2018 and December 31, 2017 ($ in thousands): March 31, 2018 December 31, 2017 Carrying Estimated Carrying Estimated Cash $ 98,310 $ 98,310 $ 77,671 $ 77,671 Commercial first mortgage loans, net 3,029,240 3,033,356 2,653,826 2,657,262 Subordinate loans, net 1,038,254 1,035,838 1,025,932 1,029,390 Secured debt arrangements (1,226,786 ) (1,226,786 ) (1,345,195 ) (1,345,195 ) 2019 Notes (252,270 ) (273,571 ) (251,935 ) (267,506 ) 2022 Notes (333,342 ) (346,604 ) (332,962 ) (350,175 ) To determine estimated fair values of the financial instruments listed above, market rates of interest, which include credit assumptions, are used to discount contractual cash flows. The estimated fair values are not necessarily indicative of the amount the Company could realize on disposition of the financial instruments. The use of different market assumptions or estimation methodologies could have a material effect on the estimated fair value amounts. Estimates of fair value for cash and convertible senior notes, net are measured using observable Level I inputs as defined in "Note 3 - Fair Value Disclosure." Estimates of fair value for all other financial instruments in the table above are measured using significant estimates, or unobservable Level III inputs as defined in "Note 3 - Fair Value Disclosure." |
Net Income (Loss) per Share
Net Income (Loss) per Share | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) per Share | Net Income (Loss) per Share ASC 260, Earnings per share , requires the use of the two-class method of computing earnings per share for all periods presented for each class of common stock and participating security as if all earnings for the period had been distributed. Under the two-class method, during periods of net income, the net income is first reduced for dividends declared on all classes of securities to arrive at undistributed earnings. During periods of net losses, the net loss is reduced for dividends declared on participating securities only if the security has the right to participate in the earnings of the entity and an objectively determinable contractual obligation to share in net losses of the entity. The remaining earnings are allocated to common stockholders and participating securities to the extent that each security shares in earnings as if all of the earnings for the period had been distributed. Each total is then divided by the applicable number of shares to arrive at basic earnings per share. For the diluted earnings, the denominator includes all outstanding shares of common stock and all potential shares of common stock assumed issued if they are dilutive. The numerator is adjusted for any changes in income or loss that would result from the assumed conversion of these potential shares of common stock. The table below presents basic and diluted net income (loss) per share of common stock using the two-class method for the three months ended March 31, 2018 and 2017 ($ in thousands except per share data): For the three months ended March 31, 2018 2017 Numerator: Net income $ 49,433 $ 47,125 Preferred dividends (6,835 ) (9,310 ) Net income available to common stockholders 42,598 37,815 Dividends declared on common stock (56,577 ) (42,146 ) Dividends on participating securities (751 ) (630 ) Net loss attributable to common stockholders $ (14,730 ) $ (4,961 ) Denominator: Basic weighted average shares of common stock outstanding 110,211,853 91,612,447 Diluted weighted average shares of common stock outstanding 111,871,429 92,998,250 Net income per weighted average share of common stock Distributable earnings per share of common stock $ 0.51 $ 0.46 Undistributed loss per share of common stock $ (0.13 ) $ (0.05 ) Net income per share of common stock $ 0.38 $ 0.41 For the three months ended March 31, 2018 and 2017 , 1,659,576 and 1,385,803 unvested RSUs, respectively, were excluded from the calculation of diluted net income per share because the effect was anti-dilutive. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Investment activity . Subsequent to the end of the quarter, the Company committed capital of $238.8 million ( $236.3 million of which was funded) of first mortgage loans. In addition the Company funded approximately $20.4 million for previously closed loans. Loan Repayments. S ubsequent to the end of the quarter, the Company received approximately $71.9 million from loan repayments. DB Repurchase Facility. Subsequent to quarter end, on April 27, 2018, the Company, through an indirect wholly-owned subsidiary, entered into a Second Amended and Restated Master Repurchase Agreement (the "Second Amendment and Restatement") with Deutsche Bank AG, Cayman Islands Branch and Deutsche Bank AG, London Branch, amending and restating the repurchase facility with DB. The Second Amendment and Restatement provides for advances of up to $800.0 million for the sale and repurchase of eligible first mortgage loans secured by commercial or multifamily properties located in the United States, United Kingdom and the European Union, and enables the Company to elect to receive advances in either U.S. dollars, British pounds or Euros. The Second Amendment and Restatement has a maturity date of March 31, 2020 plus one one -year extension available at the Company's option, subject to certain conditions. Advances under the Second Amendment and Restatement accrue interest at a per annum pricing rate equal to the sum of (i) the applicable U.S. LIBOR, U.K. LIBOR or EURIBOR plus (ii) the applicable spread. Maximum advance rates under the Second Amendment and Restatement are determined on a transaction basis. Margin calls may occur any time at specified aggregate margin deficit thresholds. The Second Amendment and Restatement contains provisions regarding events of default that are customary for similar repurchase agreements. The Company has agreed to provide a guarantee of the obligations of the seller under the Second Amendment and Restatement. In connection with the Second Amendment and Restatement, the Company is subject to customary covenants, including continuing to operate in a manner that allows the Company to qualify as a REIT for federal income tax purposes and financial covenants with respect to minimum consolidated tangible net worth, maximum total indebtedness to consolidated tangible net worth, and minimum liquidity. After the Second Amendment and Restatement, the Company has $800.0 million of maximum borrowings and an asset specific financing of $55.1 million under the DB Repurchase Facility. |
Summary of Significant Accoun28
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying condensed consolidated financial statements include the Company’s accounts and those of its consolidated subsidiaries. All intercompany amounts have been eliminated. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“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 and the reported amounts of revenues and expenses during the reporting periods. The Company’s most significant estimates include loan loss reserves and impairment. Actual results could differ from those estimates. These unaudited condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017, as filed with the Securities and Exchange Commission (the “SEC”). In the opinion of management, all adjustments (consisting only of normal recurring adjustments) necessary to present fairly the Company’s financial position, results of operations and cash flows have been included. The Company's results of operations for the three months ended March 31, 2018 are not necessarily indicative of the results to be expected for the full year or any other future period. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In August 2017, the FASB issued ASU 2017-12 "Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities” ("ASU 2017-12"). The intention of ASU 2017-12 is to align an entity’s financial reporting for hedging activities with the economic objectives of those activities. Upon adoption of ASU 2017-12, the cumulative ineffectiveness previously recognized on existing cash flow and net investment hedges will be adjusted and removed from beginning retained earnings and placed in accumulated other comprehensive income (loss). The Company notes that this guidance will not have a material impact on the Company's condensed consolidated financial statements. ASU 2017-12 is effective for fiscal years beginning after December 15, 2018 and is applied retrospectively. In November 2016, the FASB issued ASU 2016-18 “Statement of Cash Flows (Topic 230): Restricted Cash” ("ASU 2016-18"). ASU 2016-18 is intended to clarify how entities present restricted cash in the statement of cash flows. The guidance requires entities to show the changes in the total of cash and cash equivalents and restricted cash in the statement of cash flows. As a result, entities will no longer present transfers between cash and cash equivalents and restricted cash in the statement of cash flows. When cash and cash equivalents and restricted cash are presented in more than one line item on the balance sheet, the new guidance requires a reconciliation of the totals in the statement of cash flows to the related captions in the balance sheet. This reconciliation can be presented either on the face of the statement of cash flows or in the notes to the financial statements. ASU 2016-18 is effective for fiscal years beginning after December 15, 2017 and is to be applied retrospectively. The Company early adopted ASU 2016-18 on June 30, 2017, which changed the Company's condensed consolidated statement of cash flows and related disclosures for all periods presented. The following is a reconciliation of the Company's cash, cash equivalents, and restricted cash to the total presented in the Company's condensed consolidated statement of cash flows for the three months ended March 31, 2018 and March 31, 2017 , respectively ($ in thousands): Balance at March 31, 2018 Balance at March 31, 2017 Cash $ 98,310 $ 142,905 Restricted cash $ — $ 54,702 Total cash and restricted cash shown in the condensed consolidated statement of cash flows $ 98,310 $ 197,607 In June 2016, the FASB issued ASU 2016-13 “Financial Instruments - Credit Losses - Measurement of Credit Losses on Financial Instruments (Topic 326)" ("ASU 2016-13"). ASU 2016-13 significantly changes how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. The guidance will replace the “incurred loss” approach under existing guidance with an “expected loss” model for instruments measured at amortized cost, and require entities to record allowances for available-for-sale debt securities rather than reduce the carrying amount, as they do today under the other-than-temporary impairment model. It also simplifies the accounting model for purchased credit-impaired debt securities and loans. The guidance is effective for fiscal years beginning after December 15, 2019 and is to be adopted through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. While the Company is currently evaluating the impact ASU 2016-13 will have on its condensed consolidated financial statements, we expect that the adoption will result in higher provisions for potential loan losses. |
Summary of Significant Accoun29
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Schedule of Cash, Cash Equivalents and Restricted Cash | The following is a reconciliation of the Company's cash, cash equivalents, and restricted cash to the total presented in the Company's condensed consolidated statement of cash flows for the three months ended March 31, 2018 and March 31, 2017 , respectively ($ in thousands): Balance at March 31, 2018 Balance at March 31, 2017 Cash $ 98,310 $ 142,905 Restricted cash $ — $ 54,702 Total cash and restricted cash shown in the condensed consolidated statement of cash flows $ 98,310 $ 197,607 |
Schedule of Cash, Cash Equivalents and Restricted Cash | The following is a reconciliation of the Company's cash, cash equivalents, and restricted cash to the total presented in the Company's condensed consolidated statement of cash flows for the three months ended March 31, 2018 and March 31, 2017 , respectively ($ in thousands): Balance at March 31, 2018 Balance at March 31, 2017 Cash $ 98,310 $ 142,905 Restricted cash $ — $ 54,702 Total cash and restricted cash shown in the condensed consolidated statement of cash flows $ 98,310 $ 197,607 |
Fair Value Disclosure (Tables)
Fair Value Disclosure (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Summarizes Levels in Fair Value Hierarchy of Financial Instruments | The following table summarizes the levels in the fair value hierarchy into which the Company’s financial instruments were categorized as of March 31, 2018 and December 31, 2017 ($ in thousands): Fair Value as of March 31, 2018 Fair Value as of December 31, 2017 Level I Level II Level III Total Level I Level II Level III Total Derivative instruments, net $ — $ (14,499 ) $ — $ (14,499 ) $ — $ (5,644 ) $ — $ (5,644 ) |
Commercial Mortgage and Subor31
Commercial Mortgage and Subordinate Loans, Net (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Mortgage Loans on Real Estate [Abstract] | |
Schedule of Loan Portfolio | The Company’s loan portfolio was comprised of the following at March 31, 2018 and December 31, 2017 ($ in thousands): Loan Type March 31, 2018 December 31, 2017 Commercial mortgage loans, net $ 3,029,240 $ 2,653,826 Subordinate loans, net 1,038,254 1,025,932 Total loans, net $ 4,067,494 $ 3,679,758 |
Activity Related to Loan Investment Portfolio | Activity relating to our loan investment portfolio was as follows ($ in thousands): Principal Balance Deferred Fees/Other Items (1) Provision for Loan Loss (2) Carrying Value December 31, 2017 $ 3,706,169 $ (9,430 ) $ (16,981 ) $ 3,679,758 New loan fundings 488,638 — — 488,638 Add-on loan fundings 18,393 — — 18,393 Loan repayments (137,947 ) — — (137,947 ) Unrealized gain (loss) on foreign currency translation 13,555 (113 ) — 13,442 Deferred fees and other items (1) — (11,561 ) — (11,561 ) PIK interest, amortization of fees and other items (1) 10,564 6,207 — 16,771 March 31, 2018 $ 4,099,372 $ (14,897 ) $ (16,981 ) $ 4,067,494 ——————— (1) Other items primarily consist of purchase discounts or premiums, exit fees and deferred origination expenses. (2) In addition to the $17.0 million provision for loan loss, the Company recorded an impairment of $3.0 million against an investment previously recorded under other assets on the Company's consolidated balance sheet. |
Schedule of Overall Statistics for the Loan Portfolio | The following table details overall statistics for our loan portfolio ($ in thousands): March 31, 2018 December 31, 2017 Number of loans 63 59 Principal balance $ 4,099,372 $ 3,706,169 Carrying value $ 4,067,494 $ 3,679,758 Unfunded loan commitments (1) $ 852,508 $ 435,627 Weighted-average cash coupon (2) 8.6 % 8.4 % ——————— (1) Unfunded loan commitments are primarily funded to finance property improvements or lease-related expenditures by the borrowers. These future commitments are funded over the term of each loan, subject in certain cases to an expiration date. (2) For floating rate loans, based on applicable benchmark rates as of the specified dates. |
Schedule of Mortgage Loans on Real Estate | The table below details the property type of the properties securing the loans in our portfolio ($ in thousands): March 31, 2018 December 31, 2017 Property Type Carrying % of Carrying % of Predevelopment $710,992 17.5% $654,736 17.8% Residential - for sale 704,020 17.3% 442,177 12.0% Hotel 654,631 16.1% 645,056 17.6% Office 584,990 14.4% 513,830 14.0% Residential Rental 467,605 11.5% 465,057 12.6% Mixed Use 356,079 8.7% 354,640 9.6% Retail Center 199,463 4.9% 198,913 5.4% Healthcare 158,292 3.9% 173,870 4.7% Other 154,084 3.8% 154,141 4.2% Industrial 77,338 1.9% 77,338 2.1% $4,067,494 100.0% $3,679,758 100.0% The table below details the geographic distribution of the properties securing the loans in our portfolio ($ in thousands): March 31, 2018 December 31, 2017 Geographic Location Carrying % of Carrying % of Manhattan, NY $1,209,678 29.7% $1,173,833 31.9% Brooklyn, NY 358,425 8.8% 357,611 9.7% Northeast 107,671 2.7% 100,536 2.7% Midwest 737,780 18.1% 683,380 18.6% Southeast 447,450 11.0% 531,582 14.4% West 270,170 6.6% 227,024 6.2% Mid Atlantic 182,320 4.5% 191,976 5.2% Southwest 33,384 0.8% 33,615 0.9% United Kingdom 645,338 15.9% 303,488 8.3% Other International 75,278 1.9% 76,713 2.1% Total $4,067,494 100.0% $3,679,758 100.0% |
Carrying Value of Loan Portfolio Based on Internal Risk Ratings | March 31, 2018 December 31, 2017 Risk Rating Number of Loans Carrying Value % of Loan Portfolio Number of Loans Carrying Value % of Loan Portfolio 1 — $ — — % — $ — — % 2 6 395,212 10 % 5 399,326 10 % 3 54 3,431,086 84 % 51 3,034,358 83 % 4 1 168,677 4 % 1 168,208 5 % 5 2 72,519 2 % 2 77,866 2 % 63 $ 4,067,494 100 % 59 $ 3,679,758 100 % |
Other Assets (Tables)
Other Assets (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Components of Other Assets | The following table details the components of the Company's other assets ($ in thousands): March 31, 2018 December 31, 2017 Interest receivable $ 25,548 $ 23,101 Collateral deposited under derivative agreements 20,150 4,930 Other 389 389 Total $ 46,087 $ 28,420 |
Secured Debt Arrangements, Net
Secured Debt Arrangements, Net (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Weighted Average Maturities and Interest Rates of Borrowings | At March 31, 2018 and December 31, 2017 , the Company’s borrowings had the following secured debt arrangements, maturities and weighted average interest rates ($ in thousands): March 31, 2018 December 31, 2017 Maximum Amount of Borrowings Borrowings Outstanding Maturity (1) Weighted (2) Maximum Amount of Borrowings Borrowings Outstanding Maturity (1) Weighted (2) JPMorgan Facility (3) $ 1,382,000 $ 800,535 March 2020 USD L + 2.30% $ 1,393,000 $ 944,529 March 2020 USD L + 2.30% DB Repurchase Facility (USD) (4) 402,390 157,460 March 2020 USD L + 2.48% 472,090 225,367 March 2020 USD L + 2.56% DB Repurchase Facility (GBP) (4) 165,766 165,766 March 2020 GBP L + 2.60% 93,919 93,919 March 2020 GBP L + 2.60% Goldman Facility (5) 327,750 103,025 November 2020 USD L + 2.57% 331,130 81,380 November 2020 USD L + 2.73% Sub-total 2,277,906 1,226,786 2,290,139 1,345,195 less: deferred financing costs N/A (14,037 ) N/A N/A (14,348 ) N/A Total / Weighted Average $ 2,277,906 $ 1,212,749 USD L + 2.35% / $ 2,290,139 $ 1,330,847 USD L + 2.37% / GBP L + 2.60% GBP L + 2.60% ——————— (1) Maturity date assumes extensions at the Company's option are exercised. (2) Based on applicable benchmark rates as of the specified dates on floating rate debt. (3) As of March 31, 2018 , the Company's secured debt arrangement with JPMorgan Chase Bank, National Association (the "JPMorgan Facility") provided for maximum total borrowings comprised of a $1.3 billion repurchase facility and $132.0 million of an asset specific financing. (4) As of March 31, 2018 , the Company's secured debt arrangement with Deutsche Bank AG, Cayman Islands Branch and Deutsche Bank AG, London Branch (the "DB Repurchase Facility") provided for maximum total borrowings comprised of a $450.0 million repurchase facility and $55.1 million and £45.0 million of asset specific financings. (5) As of March 31, 2018 , the Company's secured debt arrangement with Goldman Sachs Bank USA (the "Goldman Facility") provided for maximum total borrowings comprised of a $300.0 million repurchase facility and $27.8 million of an asset specific financing. |
Remaining Maturities of Borrowings | At March 31, 2018 , the Company’s borrowings had the following remaining maturities ($ in thousands): Less than (1) 1 to 3 (1) 3 to 5 More than Total JPMorgan Facility $ 132,715 $ 667,820 $ — $ — $ 800,535 DB Repurchase Facility 131,419 191,807 — — 323,226 Goldman Facility — 103,025 — — 103,025 Total $ 264,134 $ 962,652 $ — $ — $ 1,226,786 ——————— (1) Assumes underlying assets are financed through the fully extended maturity date of the facility. |
Schedule of Outstanding, Maximum and Average Balances of Debt | The table below summarizes the outstanding balances at March 31, 2018 , as well as the maximum and average month-end balances for the three months ended March 31, 2018 for the Company's borrowings under secured debt arrangements ($ in thousands). For the three months ended March 31, 2018 Balance at Amortized Cost of Collateral at March 31, 2018 Maximum Month-End Average Month-End JPMorgan Facility $ 800,535 $ 1,372,877 $ 914,040 $ 786,087 DB Repurchase Facility 323,226 623,006 329,689 326,536 Goldman Facility 103,025 180,243 103,025 87,312 Total $ 1,226,786 $ 2,176,126 |
Convertible Senior Notes, Net (
Convertible Senior Notes, Net (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Convertible Senior Notes | The following table summarizes the terms of the Notes ($ in thousands): Principal Amount Coupon Rate Effective Rate (1) Conversion Rate (2) Maturity Date Remaining Period of Amortization 2019 Notes $ 254,750 5.50 % 6.36 % 57.6745 3/15/2019 0.95 years 2022 Notes 345,000 4.75 % 5.61 % 50.2260 8/23/2022 4.40 years Total $ 599,750 ——————— (1) Effective rate includes the effect of the adjustment for the conversion option (See endnote (2) below), the value of which reduced the initial liability and was recorded in additional paid-in-capital. (2) The Company has the option to settle any conversions in cash, shares of common stock or a combination thereof. The conversion rate represents the number of shares of common stock issuable per $1.0 million principal amount of the Notes converted, and includes adjustments relating to cash dividend payments made by the Company to stockholders that have been deferred and carried-forward in accordance with, and are not yet required to be made pursuant to, the terms of the applicable supplemental indenture. |
Derivatives, Net (Tables)
Derivatives, Net (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of Non-Designated Foreign Exchange Forwards | The following table summarizes the Company's non-designated foreign exchange (“Fx”) forwards as of March 31, 2018 : Type of Derivative March 31, 2018 Number of Contracts Aggregate Notional Amount (in thousands) Notional Currency Maturity Fx Contracts - GBP 31 467,737 GBP April 2018 - November 2020 The following table summarizes the Company's non-designated Fx forwards as of December 31, 2017 : Type of Derivative December 31, 2017 Number of Contracts Aggregate Notional Amount (in thousands) Notional Currency Maturity Fx Contracts - GBP 24 177,077 GBP January 2018- November 2020 |
Summary of Amounts Recognized on Consolidated Statements of Operations Related to Company's Derivatives | The following table summarizes the amounts recognized on the condensed consolidated statements of operations related to the Company’s derivatives for the three months ended March 31, 2018 and 2017 ($ in thousands): Amount of gain (loss) recognized in income Three months ended March 31, Location of (Gain) Loss Recognized in Income 2018 2017 Forward currency contracts Loss on derivative instruments - unrealized $ (8,859 ) $ (2,883 ) Forward currency contracts Loss on derivative instruments - realized (2,177 ) (156 ) Interest rate caps (1) Gain (loss) on derivative instruments - unrealized 4 (6 ) Total $ (11,032 ) $ (3,045 ) ——————— (1) With a notional amount of $38.9 million and $44.2 million at March 31, 2018 , and 2017 , respectively. |
Summarizes Gross Asset and Liability Amounts Related to Derivatives | The following table summarizes the gross asset and liability amounts related to the Company’s derivatives at March 31, 2018 and December 31, 2017 ($ in thousands). March 31, 2018 December 31, 2017 Gross Gross Net Amounts Gross Gross Net Amounts Interest rate caps $ — $ 5 $ 5 $ — $ 1 $ 1 Forward currency contracts (18,777 ) 4,273 (14,504 ) (5,645 ) — (5,645 ) Total derivative instruments $ (18,777 ) $ 4,278 $ (14,499 ) $ (5,645 ) $ 1 $ (5,644 ) |
Accounts Payable, Accrued Exp36
Accounts Payable, Accrued Expenses and Other Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable, Accrued Expense and Other Liabilities | The following table details the components of the Company's accounts payable, accrued expense and other liabilities ($ in thousands): March 31, 2018 December 31, 2017 Accrued dividends payable $ 63,598 $ 56,576 Accrued interest payable 5,336 12,796 Accounts payable and other liabilities 4,396 1,534 Total $ 73,330 $ 70,906 |
Share-Based Payments (Tables)
Share-Based Payments (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Grants, Exchanges and Forfeitures of Restricted Stock and RSUs | The following table summarizes the grants, vesting and forfeitures of restricted common stock and RSUs during the three months ended March 31, 2018 : Type Restricted Stock RSUs Grant Date Fair Value ($) Outstanding at December 31, 2017 105,561 1,632,746 Vested (2,749 ) — n/a Outstanding at March 31, 2018 102,812 1,632,746 Below is a summary of restricted stock and RSU vesting dates as of March 31, 2018 : Vesting Year Restricted Stock RSU Total Awards 2018 65,185 758,505 823,690 2019 32,733 569,909 602,642 2020 4,894 304,332 309,226 Total 102,812 1,632,746 1,735,558 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
Stockholders' Equity | During the three months ended March 31, 2018 , the Company declared the following dividends: Dividend declared per share of: Common Stock $0.46 Series B Preferred Stock 0.50 Series C Preferred Stock 0.50 |
Fair Value of Financial Instr39
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Financial Instruments Disclosure [Abstract] | |
Carrying Value and Estimated Fair Value of Company's Financial Instruments | The following table presents the carrying value and estimated fair value of the Company’s financial instruments not carried at fair value on the condensed consolidated balance sheet at March 31, 2018 and December 31, 2017 ($ in thousands): March 31, 2018 December 31, 2017 Carrying Estimated Carrying Estimated Cash $ 98,310 $ 98,310 $ 77,671 $ 77,671 Commercial first mortgage loans, net 3,029,240 3,033,356 2,653,826 2,657,262 Subordinate loans, net 1,038,254 1,035,838 1,025,932 1,029,390 Secured debt arrangements (1,226,786 ) (1,226,786 ) (1,345,195 ) (1,345,195 ) 2019 Notes (252,270 ) (273,571 ) (251,935 ) (267,506 ) 2022 Notes (333,342 ) (346,604 ) (332,962 ) (350,175 ) |
Net Income (Loss) per Share (Ta
Net Income (Loss) per Share (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Net Income per Share of Common Stock Using Two-Class Method | The table below presents basic and diluted net income (loss) per share of common stock using the two-class method for the three months ended March 31, 2018 and 2017 ($ in thousands except per share data): For the three months ended March 31, 2018 2017 Numerator: Net income $ 49,433 $ 47,125 Preferred dividends (6,835 ) (9,310 ) Net income available to common stockholders 42,598 37,815 Dividends declared on common stock (56,577 ) (42,146 ) Dividends on participating securities (751 ) (630 ) Net loss attributable to common stockholders $ (14,730 ) $ (4,961 ) Denominator: Basic weighted average shares of common stock outstanding 110,211,853 91,612,447 Diluted weighted average shares of common stock outstanding 111,871,429 92,998,250 Net income per weighted average share of common stock Distributable earnings per share of common stock $ 0.51 $ 0.46 Undistributed loss per share of common stock $ (0.13 ) $ (0.05 ) Net income per share of common stock $ 0.38 $ 0.41 |
Summary of Significant Accoun41
Summary of Significant Accounting Policies - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2018Segment | |
Accounting Policies [Abstract] | |
Number of business segments | 1 |
Summary of Significant Accoun42
Summary of Significant Accounting Policies - Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
Accounting Policies [Abstract] | ||||
Cash | $ 98,310 | $ 77,671 | $ 142,905 | |
Restricted cash | 0 | 54,702 | ||
Total cash and restricted cash shown in the condensed consolidated statement of cash flows | $ 98,310 | $ 77,671 | $ 197,607 | $ 263,452 |
Fair Value Disclosure - Summari
Fair Value Disclosure - Summarizes Levels in Fair Value Hierarchy of Financial Instruments (Details) - Estimate of Fair Value [Member] - USD ($) $ in Thousands | Mar. 31, 2018 | Mar. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative instruments | $ (14,499) | $ (5,644) |
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative instruments | $ (14,499) | $ (5,644) |
Securities (Details)
Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Schedule of Available-for-sale Securities [Line Items] | ||
Realized loss on sale of securities | $ 0 | $ 1,042 |
Interest income from securities | 0 | |
Payments and proceeds received on securities | 0 | (70,033) |
Commercial Mortgage Backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Realized loss on sale of securities | 1,000 | |
Interest income from securities | 6,054 | |
Held-to-maturity Securities [Member] | Commercial Mortgage Backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Interest income from securities | 2,800 | |
Fair Value Option [Member] | Commercial Mortgage Backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Interest income from securities | $ 3,300 | |
Restatement Adjustment [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Payments and proceeds received on securities | 69,200 | |
Principal payments received on securities, CMBS (Held-to-Maturity) | 800 | |
Principal payments received on CMBS (Fair Value Option) | $ 30 |
Commercial Mortgage and Subor45
Commercial Mortgage and Subordinate Loans, Net - Loan Portfolio (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying value | $ 4,067,494 | $ 3,679,758 |
Commercial Mortgage Portfolio Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying value | 3,029,240 | 2,653,826 |
Subordinate Mortgage Portfolio Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying value | $ 1,038,254 | $ 1,025,932 |
Commercial Mortgage and Subor46
Commercial Mortgage and Subordinate Loans, Net - Activity Relating to Loan Investment Portfolio (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Principal Balance | |||
Loan repayments | $ (90,547) | $ (6,336) | |
Commercial Mortgage and Subordinated Portfolio Segment [Member] | |||
Principal Balance | |||
Principal balance, beginning | 3,706,169 | ||
New loan fundings | 488,638 | ||
Add-on loan fundings | 18,393 | ||
Loan repayments | (137,947) | ||
Unrealized gain (loss) on foreign currency translation | 13,555 | ||
Deferred fees and other items | 0 | ||
PIK interest, amortization of fees and other items | 10,564 | ||
Principal balance, ending | 4,099,372 | $ 3,706,169 | |
Deferred Fees/Other Items | |||
Deferred fees/other items, beginning | (9,430) | ||
Unrealized gain (loss) on foreign currency translation | (113) | ||
Deferred fees and other items | (11,561) | ||
PIK interest, amortization of fees and other items | 6,207 | ||
Deferred fees/other items, ending | (14,897) | (9,430) | |
Provision for Loan Loss | |||
Provision for loans, beginning | (16,981) | ||
Provision for loans, ending | (16,981) | (16,981) | |
Carrying Value | |||
Carrying value, beginning balance | 3,679,758 | ||
Unrealized gain (loss) on foreign currency translation | 13,442 | ||
Deferred fees and other items | (11,561) | ||
PIK interest, amortization of fees and other items | 16,771 | ||
Carrying value, ending balance | 4,067,494 | 3,679,758 | |
Provision for loan losses | 17,000 | ||
Other Assets [Member] | Commercial Mortgage and Subordinated Portfolio Segment [Member] | |||
Carrying Value | |||
Impairment | $ 3,000 | $ 3,000 |
Commercial Mortgage and Subor47
Commercial Mortgage and Subordinate Loans, Net - Narrative (Details) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2018USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2017USD ($)$ / ft² | Dec. 31, 2016USD ($) | |
Mortgage Loans on Real Estate [Line Items] | ||||
Percentage of loan portfolio | 100.00% | 100.00% | ||
Payment in kind interest | $ 10,600,000 | $ 7,900,000 | ||
Proceeds from pre-payment penalties or accelerated fees | 0 | $ 0 | ||
Commercial Mortgage and Subordinated Portfolio Segment [Member] | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Provision for loan losses and impairment | 17,000,000 | |||
Commercial Mortgage Portfolio Segment [Member] | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Provision for loan losses and impairment | 12,000,000 | |||
Terminal capitalization rate | 11.00% | |||
Discount rate | 10.00% | |||
Subordinate Mortgage Portfolio Segment [Member] | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Provision for loan losses and impairment | 5,000,000 | |||
Residential Condominium - Bethesda, MD [Member] | Commercial Mortgage and Subordinated Portfolio Segment [Member] | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Provision for loan losses and impairment | $ 2,000,000 | |||
Residential Condominium - Bethesda, MD [Member] | Commercial Mortgage Portfolio Segment [Member] | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Fair value inputs, sales price per square foot | $ / ft² | 678 | |||
Discount rate | 15.00% | |||
Multifamily - Williston, ND [Member] | Commercial Mortgage Portfolio Segment [Member] | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Provision for loan losses and impairment | $ 10,000,000 | |||
Multifamily - Williston, ND [Member] | Subordinate Mortgage Portfolio Segment [Member] | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Provision for loan losses and impairment | $ 5,000,000 | |||
Other Assets [Member] | Commercial Mortgage and Subordinated Portfolio Segment [Member] | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Impairment | $ 3,000,000 | $ 3,000,000 | ||
Floating Rate Loan [Member] | ||||
Mortgage Loans on Real Estate [Line Items] | ||||
Percentage of loan portfolio | 89.00% | 88.00% |
Commercial Mortgage and Subor48
Commercial Mortgage and Subordinate Loans, Net - Statistics for Loan Portfolio (Details) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018USD ($)loan | Dec. 31, 2017USD ($)loan | |
Mortgage Loans on Real Estate [Abstract] | ||
Number of loans | loan | 63 | 59 |
Principal balance | $ 4,099,372 | $ 3,706,169 |
Carrying value | 4,067,494 | 3,679,758 |
Unfunded loan commitments | $ 852,508 | $ 435,627 |
Weighted-average cash coupon | 8.60% | 8.40% |
Commercial Mortgage and Subor49
Commercial Mortgage and Subordinate Loans, Net - Schedule of Mortgage Loans by Property Type and Geographic Distribution (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Mortgage Loans on Real Estate [Line Items] | ||
Carrying value | $ 4,067,494 | $ 3,679,758 |
% of Portfolio | 100.00% | 100.00% |
Urban Retail Predevelopment [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Carrying value | $ 710,992 | $ 654,736 |
% of Portfolio | 17.50% | 17.80% |
Residential-for Sale [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Carrying value | $ 704,020 | $ 442,177 |
% of Portfolio | 17.30% | 12.00% |
Hotel [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Carrying value | $ 654,631 | $ 645,056 |
% of Portfolio | 16.10% | 17.60% |
Office [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Carrying value | $ 584,990 | $ 513,830 |
% of Portfolio | 14.40% | 14.00% |
Residential Rental [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Carrying value | $ 467,605 | $ 465,057 |
% of Portfolio | 11.50% | 12.60% |
Mixed Use [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Carrying value | $ 356,079 | $ 354,640 |
% of Portfolio | 8.70% | 9.60% |
Retail Center [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Carrying value | $ 199,463 | $ 198,913 |
% of Portfolio | 4.90% | 5.40% |
Healthcare [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Carrying value | $ 158,292 | $ 173,870 |
% of Portfolio | 3.90% | 4.70% |
Other Property [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Carrying value | $ 154,084 | $ 154,141 |
% of Portfolio | 3.80% | 4.20% |
Industrial [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Carrying value | $ 77,338 | $ 77,338 |
% of Portfolio | 1.90% | 2.10% |
Manhattan, NY [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Carrying value | $ 1,209,678 | $ 1,173,833 |
% of Portfolio | 29.70% | 31.90% |
Brooklyn, NY [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Carrying value | $ 358,425 | $ 357,611 |
% of Portfolio | 8.80% | 9.70% |
Northeast [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Carrying value | $ 107,671 | $ 100,536 |
% of Portfolio | 2.70% | 2.70% |
Midwest [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Carrying value | $ 737,780 | $ 683,380 |
% of Portfolio | 18.10% | 18.60% |
Southeast [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Carrying value | $ 447,450 | $ 531,582 |
% of Portfolio | 11.00% | 14.40% |
West [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Carrying value | $ 270,170 | $ 227,024 |
% of Portfolio | 6.60% | 6.20% |
Mid Atlantic [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Carrying value | $ 182,320 | $ 191,976 |
% of Portfolio | 4.50% | 5.20% |
Southwest [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Carrying value | $ 33,384 | $ 33,615 |
% of Portfolio | 0.80% | 0.90% |
UNITED KINGDOM | ||
Mortgage Loans on Real Estate [Line Items] | ||
Carrying value | $ 645,338 | $ 303,488 |
% of Portfolio | 15.90% | 8.30% |
Other International [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Carrying value | $ 75,278 | $ 76,713 |
% of Portfolio | 1.90% | 2.10% |
Commercial Mortgage and Subor50
Commercial Mortgage and Subordinate Loans, Net - Allocation of Carrying Value of Loan Portfolio Based on Internal Risk Ratings (Details) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018USD ($)loan | Dec. 31, 2017USD ($)loan | |
Mortgage Loans on Real Estate [Line Items] | ||
Number of loans | loan | 63 | 59 |
Carrying value | $ | $ 4,067,494 | $ 3,679,758 |
% of Portfolio | 100.00% | 100.00% |
1 [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Number of loans | loan | 0 | 0 |
Carrying value | $ | $ 0 | $ 0 |
% of Portfolio | 0.00% | 0.00% |
2 [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Number of loans | loan | 6 | 5 |
Carrying value | $ | $ 395,212 | $ 399,326 |
% of Portfolio | 10.00% | 10.00% |
3 [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Number of loans | loan | 54 | 51 |
Carrying value | $ | $ 3,431,086 | $ 3,034,358 |
% of Portfolio | 84.00% | 83.00% |
4 [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Number of loans | loan | 1 | 1 |
Carrying value | $ | $ 168,677 | $ 168,208 |
% of Portfolio | 4.00% | 5.00% |
5 [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Number of loans | loan | 2 | 2 |
Carrying value | $ | $ 72,519 | $ 77,866 |
% of Portfolio | 2.00% | 2.00% |
Loans Proceeds Held by Servicer
Loans Proceeds Held by Servicer (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Receivables [Abstract] | ||
Loan proceeds held by servicer | $ 30,281 | $ 302,756 |
Other Assets (Details)
Other Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Interest receivable | $ 25,548 | $ 23,101 |
Collateral deposited under derivative agreements | 20,150 | 4,930 |
Other | 389 | 389 |
Other Assets | $ 46,087 | $ 28,420 |
Secured Debt Arrangements, Ne53
Secured Debt Arrangements, Net - Weighted Average Maturities and Interest Rates of Borrowings (Details) | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Mar. 31, 2018GBP (£) | Dec. 31, 2017GBP (£) | Mar. 31, 2017USD ($) | Mar. 31, 2017GBP (£) | |
Debt Instrument [Line Items] | ||||||
Borrowings outstanding | $ 1,212,749,000 | $ 1,330,847,000 | ||||
less: deferred financing costs | (14,037,000) | (14,348,000) | ||||
Line of Credit [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Maximum Amount of Borrowings | 2,277,906,000 | 2,290,139,000 | ||||
Borrowings outstanding | 1,212,749,000 | 1,330,847,000 | ||||
less: deferred financing costs | (14,037,000) | (14,348,000) | ||||
Line of Credit [Member] | JP Morgan Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Maximum Amount of Borrowings | 1,382,000,000 | 1,393,000,000 | ||||
Borrowings outstanding | 800,535,000 | $ 944,529,000 | ||||
Line of Credit [Member] | JP Morgan Facility [Member] | General Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit, amount outstanding | 1,300,000,000 | |||||
Line of Credit [Member] | JP Morgan Facility [Member] | Asset Specific Financing [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Maximum Amount of Borrowings | $ 132,000 | |||||
Line of credit, amount outstanding | $ 132,000,000 | |||||
Line of Credit [Member] | JP Morgan Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Weighted Average Rate | 2.30% | 2.30% | ||||
Line of Credit [Member] | JP Morgan Chase, DB Repurchase Facility, and Goldman Sachs [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Maximum Amount of Borrowings | $ 2,277,906,000 | $ 2,290,139,000 | ||||
Borrowings outstanding | $ 1,226,786,000 | $ 1,345,195,000 | ||||
Line of Credit [Member] | JP Morgan Chase, DB Repurchase Facility, and Goldman Sachs [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Weighted Average Rate | 2.35% | 2.37% | ||||
Line of Credit [Member] | JP Morgan Chase, DB Repurchase Facility, and Goldman Sachs [Member] | London Interbank Offered Rate (LIBOR) [Member] | Weighted Average [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Weighted Average Rate | 2.60% | 2.60% | ||||
Line of Credit [Member] | Deutsche Bank Repurchase Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Maximum Amount of Borrowings | 568,200,000 | |||||
Borrowings outstanding | $ 323,200,000 | £ 118,300,000 | ||||
Line of Credit [Member] | Deutsche Bank Repurchase Facility [Member] | General Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Maximum Amount of Borrowings | 450,000,000 | £ 73,300,000 | ||||
Line of credit, amount outstanding | 450,000,000 | 102,400,000 | £ 45,000,000 | |||
Line of Credit [Member] | Deutsche Bank Repurchase Facility [Member] | Asset Specific Financing [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit, amount outstanding | $ 55,100,000 | 45,000,000 | $ 55,100,000 | |||
Line of Credit [Member] | Deutsche Bank Repurchase Facility [Member] | GBP London Interbank Offered Rate (LIBOR) [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Weighted Average Rate | 2.60% | |||||
Line of Credit [Member] | Goldman Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Maximum Amount of Borrowings | $ 327,750,000 | $ 331,130,000 | ||||
Borrowings outstanding | 103,025,000 | $ 81,380,000 | ||||
Line of Credit [Member] | Goldman Facility [Member] | General Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Borrowings outstanding | 75,200,000 | |||||
Line of credit, amount outstanding | 300,000,000 | |||||
Line of Credit [Member] | Goldman Facility [Member] | Asset Specific Financing [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit, amount outstanding | $ 27,800,000 | |||||
Line of Credit [Member] | Goldman Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Weighted Average Rate | 2.57% | 2.73% | ||||
USD | Line of Credit [Member] | Deutsche Bank Repurchase Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Maximum Amount of Borrowings | $ 402,390,000 | $ 472,090,000 | ||||
Borrowings outstanding | $ 157,460,000 | $ 225,367,000 | ||||
USD | Line of Credit [Member] | Deutsche Bank Repurchase Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Weighted Average Rate | 2.48% | 2.56% | ||||
GBP | Line of Credit [Member] | Deutsche Bank Repurchase Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Maximum Amount of Borrowings | £ | 165,766,000 | £ 93,919,000 | ||||
Borrowings outstanding | £ | £ 165,766,000 | £ 93,919,000 | ||||
GBP | Line of Credit [Member] | Deutsche Bank Repurchase Facility [Member] | GBP London Interbank Offered Rate (LIBOR) [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Weighted Average Rate | 2.60% | 2.60% |
Secured Debt Arrangements, Ne54
Secured Debt Arrangements, Net - Remaining Maturities of Borrowings (Details) - Line of Credit [Member] $ in Thousands | Mar. 31, 2018USD ($) |
Line of Credit Facility [Line Items] | |
Less than 1 year | $ 264,134 |
1 to 3 years | 962,652 |
3 to 5 years | 0 |
More than 5 years | 0 |
Total | 1,226,786 |
JP Morgan Facility [Member] | |
Line of Credit Facility [Line Items] | |
Less than 1 year | 132,715 |
1 to 3 years | 667,820 |
3 to 5 years | 0 |
More than 5 years | 0 |
Total | 800,535 |
DB Repurchase Facility [Member] | |
Line of Credit Facility [Line Items] | |
Less than 1 year | 131,419 |
1 to 3 years | 191,807 |
3 to 5 years | 0 |
More than 5 years | 0 |
Total | 323,226 |
Goldman Facility [Member] | |
Line of Credit Facility [Line Items] | |
Less than 1 year | 0 |
1 to 3 years | 103,025 |
3 to 5 years | 0 |
More than 5 years | 0 |
Total | $ 103,025 |
Secured Debt Arrangements, Ne55
Secured Debt Arrangements, Net - Summary of Outstanding Balances, Maximum and Average Balances of Borrowings (Details) - Line of Credit [Member] $ in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Line of Credit Facility [Line Items] | |
Securities sold under agreements to repurchase, gross | $ 1,226,786 |
Securities sold under agreements to repurchase, amortized cost of collateral | 2,176,126 |
JP Morgan Facility [Member] | |
Line of Credit Facility [Line Items] | |
Securities sold under agreements to repurchase, gross | 800,535 |
Securities sold under agreements to repurchase, amortized cost of collateral | 1,372,877 |
Maximum Month-End Balance | 914,040 |
Average Month-End Balance | 786,087 |
DB Repurchase Facility [Member] | |
Line of Credit Facility [Line Items] | |
Securities sold under agreements to repurchase, gross | 323,226 |
Securities sold under agreements to repurchase, amortized cost of collateral | 623,006 |
Maximum Month-End Balance | 329,689 |
Average Month-End Balance | 326,536 |
Goldman Facility [Member] | |
Line of Credit Facility [Line Items] | |
Securities sold under agreements to repurchase, gross | 103,025 |
Securities sold under agreements to repurchase, amortized cost of collateral | 180,243 |
Maximum Month-End Balance | 103,025 |
Average Month-End Balance | $ 87,312 |
Secured Debt Arrangements, Ne56
Secured Debt Arrangements, Net - Additional Information (Details) £ in Millions | Mar. 31, 2017USD ($)extensionsubsidiary | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Mar. 31, 2018GBP (£) | Mar. 31, 2017GBP (£) |
Debt Instrument [Line Items] | |||||
Borrowings outstanding | $ 1,212,749,000 | $ 1,330,847,000 | |||
Line of Credit [Member] | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing under facility | 2,277,906,000 | 2,290,139,000 | |||
Borrowings outstanding | 1,212,749,000 | 1,330,847,000 | |||
Line of Credit [Member] | JP Morgan Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing under facility | 1,382,000,000 | 1,393,000,000 | |||
Borrowings outstanding | $ 800,535,000 | $ 944,529,000 | |||
Line of Credit [Member] | JP Morgan Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||
Debt Instrument [Line Items] | |||||
Basis spread on interest rate | 2.30% | 2.30% | |||
Line of Credit [Member] | DB Repurchase Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing under facility | $ 568,200,000 | ||||
Borrowings outstanding | $ 323,200,000 | £ 118.3 | |||
Debt instrument, number of extension available | extension | 1 | ||||
Length of potential extension | 1 year | ||||
Line of Credit [Member] | DB Repurchase Facility [Member] | GBP London Interbank Offered Rate (LIBOR) [Member] | |||||
Debt Instrument [Line Items] | |||||
Basis spread on interest rate | 2.60% | ||||
Line of Credit [Member] | Goldman Sachs Repurchase Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing under facility | $ 327,750,000 | $ 331,130,000 | |||
Borrowings outstanding | $ 103,025,000 | $ 81,380,000 | |||
Line of Credit [Member] | Goldman Sachs Repurchase Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||
Debt Instrument [Line Items] | |||||
Basis spread on interest rate | 2.57% | 2.73% | |||
Line of Credit [Member] | Minimum [Member] | DB Repurchase Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||
Debt Instrument [Line Items] | |||||
Basis spread on interest rate | 2.10% | ||||
Line of Credit [Member] | Minimum [Member] | Goldman Sachs Repurchase Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||
Debt Instrument [Line Items] | |||||
Basis spread on interest rate | 2.20% | ||||
Line of Credit [Member] | Maximum [Member] | DB Repurchase Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||
Debt Instrument [Line Items] | |||||
Basis spread on interest rate | 3.00% | ||||
Line of Credit [Member] | Maximum [Member] | Goldman Sachs Repurchase Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||
Debt Instrument [Line Items] | |||||
Basis spread on interest rate | 3.50% | ||||
JP Morgan Facility [Member] | Line of Credit [Member] | JP Morgan Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Number of subsidiaries | subsidiary | 2 | ||||
Amended and Restated JPMorgan Facility [Member] | Line of Credit [Member] | JP Morgan Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing under facility | $ 1,382,000 | ||||
Extension option | 1 year | ||||
Amended and Restated JPMorgan Facility [Member] | Line of Credit [Member] | Minimum [Member] | JP Morgan Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||
Debt Instrument [Line Items] | |||||
Basis spread on interest rate | 2.25% | ||||
Amended and Restated JPMorgan Facility [Member] | Line of Credit [Member] | Maximum [Member] | JP Morgan Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||
Debt Instrument [Line Items] | |||||
Basis spread on interest rate | 2.75% | ||||
Repurchase Facility [Member] | Line of Credit [Member] | JP Morgan Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing under facility | $ 1,250,000 | ||||
Asset Specific Financing [Member] | Line of Credit [Member] | JP Morgan Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing under facility | 132,000 | ||||
Line of credit, amount outstanding | $ 132,000,000 | ||||
Asset Specific Financing [Member] | Line of Credit [Member] | DB Repurchase Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Line of credit, amount outstanding | 55,100,000 | 55,100,000 | £ 45 | ||
Asset Specific Financing [Member] | Line of Credit [Member] | Goldman Sachs Repurchase Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Line of credit, amount outstanding | 27,800,000 | ||||
General Facility [Member] | Line of Credit [Member] | JP Morgan Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Line of credit, amount outstanding | 1,300,000,000 | ||||
General Facility [Member] | Line of Credit [Member] | DB Repurchase Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing under facility | 450,000,000 | £ 73.3 | |||
Line of credit, amount outstanding | $ 102,400,000 | 450,000,000 | £ 45 | ||
General Facility [Member] | Line of Credit [Member] | Goldman Sachs Repurchase Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Borrowings outstanding | 75,200,000 | ||||
Line of credit, amount outstanding | $ 300,000,000 |
Convertible Senior Notes, Net57
Convertible Senior Notes, Net (Details) | Nov. 09, 2017USD ($) | Aug. 21, 2017USD ($) | Aug. 18, 2014USD ($) | Mar. 17, 2014USD ($) | Mar. 31, 2018USD ($) | Mar. 31, 2017USD ($) | Mar. 29, 2018$ / shares | Dec. 31, 2017USD ($) |
Debt Instrument [Line Items] | ||||||||
Convertible senior notes, net | $ 585,972,000 | $ 584,897,000 | ||||||
Share price (in dollars per share) | $ / shares | $ 17.98 | |||||||
Convertible Debt [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal amount | $ 599,750,000 | |||||||
Conversion rate basis, principal amount | 1,000,000 | |||||||
Convertible Debt [Member] | March 2019 Notes [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal amount | $ 143,800,000 | |||||||
Coupon rate | 5.50% | |||||||
Proceeds from issuance of convertible senior notes | $ 139,000,000 | |||||||
Convertible senior notes, net | 142,700,000 | |||||||
Unamortized discount | 1,100,000 | |||||||
Convertible Debt [Member] | August 2019 Notes [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal amount | $ 111,000,000 | |||||||
Coupon rate | 5.50% | |||||||
Proceeds from issuance of convertible senior notes | $ 109,600,000 | |||||||
Convertible senior notes, net | 109,700,000 | |||||||
Unamortized discount | 1,300,000 | |||||||
Convertible Debt [Member] | August 2022 Notes [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal amount | $ 230,000,000 | |||||||
Coupon rate | 4.75% | |||||||
Proceeds from issuance of convertible senior notes | $ 224,800,000 | |||||||
Convertible senior notes, net | 221,300,000 | |||||||
Unamortized discount | 8,700,000 | |||||||
Convertible Debt [Member] | November 2022 Notes [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal amount | $ 115,000,000 | |||||||
Coupon rate | 4.75% | |||||||
Proceeds from issuance of convertible senior notes | $ 112,700,000 | |||||||
Convertible senior notes, net | 112,200,000 | |||||||
Unamortized discount | 2,800,000 | |||||||
Convertible Debt [Member] | 2019 and 2022 Notes [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Equity component of senior notes | 22,400,000 | |||||||
Convertible Debt [Member] | 2019 Notes [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal amount | $ 254,750,000 | |||||||
Coupon rate | 5.50% | |||||||
Effective rate | 6.36% | |||||||
Conversion rate | 57.6745 | |||||||
Remaining period of amortization (years) | 11 months 13 days | |||||||
Equity component of senior notes | 11,400,000 | |||||||
Interest expense on debt | 7,600,000 | $ 3,500,000 | ||||||
Additional non-cash interest expense | 1,800,000 | $ 900,000 | ||||||
Convertible Debt [Member] | 2022 Notes [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal amount | $ 345,000,000 | |||||||
Coupon rate | 4.75% | |||||||
Effective rate | 5.61% | |||||||
Conversion rate | 50.2260 | |||||||
Remaining period of amortization (years) | 4 years 4 months 24 days | |||||||
Equity component of senior notes | $ 11,000,000 |
Derivatives, Net - Summary of N
Derivatives, Net - Summary of Non-Designated Foreign Exchange Forwards (Details) - Not Designated as Hedging Instrument [Member] - Forward Currency Contract [Member] | Mar. 31, 2018GBP (£)contract | Dec. 31, 2017GBP (£)contract |
Derivative [Line Items] | ||
Number of Contracts | contract | 31 | 24 |
Aggregate Notional Amount (in thousands) | £ | £ 467,737 | £ 177,077 |
Derivatives, Net - Summary of A
Derivatives, Net - Summary of Amounts Recognized on Consolidated Statements of Operations Related to Company's Derivatives (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) on derivative instruments - unrealized | $ (8,855,000) | $ (2,897,000) |
Gain (loss) on derivative instruments | (11,032,000) | (3,045,000) |
Forward Currency Contract [Member] | Gain (Loss) on Derivative Instruments [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) on derivative instruments - unrealized | (8,859,000) | (2,883,000) |
Loss on derivative instruments - realized | (2,177,000) | (156,000) |
Interest Rate Cap [Member] | Gain (Loss) on Derivative Instruments [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) on derivative instruments - unrealized | 4,000 | (6,000) |
Aggregate Notional Amount (in thousands) | $ 38,862,000 | $ 44,200,000 |
Derivatives, Net - Summarizes G
Derivatives, Net - Summarizes Gross Asset and Liability Amounts Related to Derivatives (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Derivative Liability [Abstract] | ||
Gross Amount of Recognized Liabilities | $ (18,777) | $ (5,645) |
Gross Amounts Offset in the Condensed Consolidated Balance Sheet | 4,278 | 1 |
Net Amounts of Assets (Liabilities) Presented in the Condensed Consolidated Balance Sheet | (14,499) | (5,644) |
Interest Rate Cap [Member] | ||
Derivative Liability [Abstract] | ||
Gross Amount of Recognized Liabilities | 0 | 0 |
Gross Amounts Offset in the Condensed Consolidated Balance Sheet | 5 | 1 |
Net Amounts of Assets (Liabilities) Presented in the Condensed Consolidated Balance Sheet | 5 | 1 |
Forward Currency Contract [Member] | ||
Derivative Liability [Abstract] | ||
Gross Amount of Recognized Liabilities | (18,777) | (5,645) |
Gross Amounts Offset in the Condensed Consolidated Balance Sheet | 4,273 | 0 |
Net Amounts of Assets (Liabilities) Presented in the Condensed Consolidated Balance Sheet | $ (14,504) | $ (5,645) |
Accounts Payable, Accrued Exp61
Accounts Payable, Accrued Expenses and Other Liabilities Accounts Payable, Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 |
Payables and Accruals [Abstract] | |||
Accrued dividends payable | $ 63,598 | $ 56,576 | $ 51,109 |
Accrued interest payable | 5,336 | 12,796 | |
Accounts payable and other liabilities | 4,396 | 1,534 | |
Total | $ 73,330 | $ 70,906 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | 3 Months Ended | |||||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Sep. 30, 2014 | |
Related Party Transaction [Line Items] | ||||||
Related party expenses | $ 8,092,000 | $ 7,432,000 | ||||
Base management fees incurred but not yet paid | $ 8,092,000 | $ 8,168,000 | ||||
Limited Liability Company [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Rate of management fees | 1.50% | |||||
Extension period | 1 year | |||||
Voting requirement to termination management agreement, percentage | 66.66% | |||||
Period of termination | 180 days | |||||
Termination vote threshold rate, percentage | 300.00% | |||||
Termination fee calculation period | 24 months | |||||
Limited Liability Company [Member] | Management Fees [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Related party expenses | $ 8,100,000 | 7,400,000 | ||||
Base management fees incurred but not yet paid | 8,100,000 | 7,400,000 | ||||
Limited Liability Company [Member] | Reimbursements [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Related party expenses | $ 600,000 | $ 100,000 | ||||
Champ Limited Partnership [Member] | Subsidiaries [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Indirect ownership interest from limited partnership | 59.00% | |||||
KBC Bank Deutschland AG [Member] | Champ LP [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Indirect ownership interest from limited partnership | 35.00% | |||||
Residential Condominium [Member] | Pre-development Mezzanine Loan [Member] | Affiliated Entity [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Original face amount | $ 300,000,000 | |||||
Commercial Mortgage Portfolio Segment [Member] | Affiliated Entity [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Original face amount | 125,000,000 | $ 100,000,000 | ||||
Commercial Mortgage Portfolio Segment [Member] | Residential Condominium [Member] | Pre-development Mezzanine Loan [Member] | Affiliated Entity [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Original face amount | $ 25,000,000 | $ 25,000,000 |
Share-Based Payments - Addition
Share-Based Payments - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2015 | Sep. 23, 2009 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Recognized stock-based compensation expense | $ 3,342 | $ 3,791 | ||
Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized stock-based compensation expense | 1,300 | |||
RSU [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized stock-based compensation expense | $ 26,000 | |||
LTIP [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Percentage of issued and outstanding shares of common stock provides for grants of restricted common stock, restricted stock units and other equity-based awards | 7.50% | |||
Common stock, shares delivered | 345,996 | |||
LTIP [Member] | Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock units vested | 2,749 | |||
LTIP [Member] | RSU [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock units vested | 603,677 | 0 | ||
Adjustments to additional paid in capital, income tax deficiency from share-based compensation | $ 4,700 |
Share-Based Payments - Summary
Share-Based Payments - Summary of Grants, Exchanges and Forfeitures of Restricted Stock and RSUs (Details) - LTIP [Member] - shares | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2015 | |
Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Outstanding, beginning balance (in shares) | 105,561 | |
Vested (in shares) | (2,749) | |
Outstanding, ending balance (in shares) | 102,812 | |
RSU [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Outstanding, beginning balance (in shares) | 1,632,746 | |
Vested (in shares) | (603,677) | 0 |
Outstanding, ending balance (in shares) | 1,632,746 |
Share-Based Payments - Summar65
Share-Based Payments - Summary of Restricted Stock and RSU Vesting Dates (Details) - LTIP [Member] | Mar. 31, 2018shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares vesting (in shares) | 1,735,558 |
2018 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares vesting (in shares) | 823,690 |
2019 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares vesting (in shares) | 602,642 |
2020 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares vesting (in shares) | 309,226 |
Restricted Stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares vesting (in shares) | 102,812 |
Restricted Stock [Member] | 2018 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares vesting (in shares) | 65,185 |
Restricted Stock [Member] | 2019 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares vesting (in shares) | 32,733 |
Restricted Stock [Member] | 2020 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares vesting (in shares) | 4,894 |
RSU [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares vesting (in shares) | 1,632,746 |
RSU [Member] | 2018 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares vesting (in shares) | 758,505 |
RSU [Member] | 2019 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares vesting (in shares) | 569,909 |
RSU [Member] | 2020 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares vesting (in shares) | 304,332 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | |
Class of Stock [Line Items] | ||
Common stock, shares authorized (in shares) | 450,000,000 | 450,000,000 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares issued (in shares) | 122,992,231 | 107,121,235 |
Common shares outstanding (in shares) | 122,992,231 | 107,121,235 |
Proceeds from issuance of common stock, net of offering costs | $ 275.9 | |
Series B Preferred Stock [Member] | ||
Class of Stock [Line Items] | ||
Preferred stock, shares issued (in shares) | 6,770,393 | 6,770,393 |
Preferred stock, shares outstanding (in shares) | 6,770,393 | 6,770,393 |
Preferred stock dividend percentage | 8.00% | |
Series C Preferred Stock [Member] | ||
Class of Stock [Line Items] | ||
Preferred stock, shares issued (in shares) | 6,900,000 | 6,900,000 |
Preferred stock, shares outstanding (in shares) | 6,900,000 | 6,900,000 |
Preferred stock dividend percentage | 8.00% | |
Common Stock [Member] | ||
Class of Stock [Line Items] | ||
Issuance of stock (in shares) | 15,525,000 | |
Common Stock [Member] | Follow-on public offering [Member] | ||
Class of Stock [Line Items] | ||
Issuance of stock (in shares) | 15,525,000 | |
Price per share of issued stock (in dollars per share) | $ 17.77 |
Stockholders' Equity - Dividend
Stockholders' Equity - Dividends Declared (Details) - $ / shares | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Class of Stock [Line Items] | ||
Dividends declared (in dollars per share) | $ 0.46 | $ 0.46 |
Common stock [Member] | ||
Class of Stock [Line Items] | ||
Dividends declared (in dollars per share) | 0.46 | |
Series B Preferred Stock [Member] | ||
Class of Stock [Line Items] | ||
Dividends declared (in dollars per share) | 0.5 | |
Series C Preferred Stock [Member] | ||
Class of Stock [Line Items] | ||
Dividends declared (in dollars per share) | $ 0.5 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Schedule of Equity Method Investments [Line Items] | ||
Unfunded loan commitments | $ 852,508 | $ 435,627 |
Commercial Mortgage and Subordinated Portfolio Segment [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Unfunded loan commitments | $ 852,500 |
Fair Value of Financial Instr69
Fair Value of Financial Instruments - Carrying Value and Estimated Fair Value of Company's Financial Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Carrying Value [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Cash | $ 98,310 | $ 77,671 |
Carrying Value [Member] | Level 3 [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Secured debt arrangements | (1,226,786) | (1,345,195) |
Estimate of Fair Value Measurement [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Cash | 98,310 | 77,671 |
Estimate of Fair Value Measurement [Member] | Level 3 [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Secured debt arrangements | (1,226,786) | (1,345,195) |
Commercial Mortgage Portfolio Segment [Member] | Carrying Value [Member] | Level 3 [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 3,029,240 | 2,653,826 |
Commercial Mortgage Portfolio Segment [Member] | Estimate of Fair Value Measurement [Member] | Level 3 [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 3,033,356 | 2,657,262 |
Subordinate Mortgage Portfolio Segment [Member] | Carrying Value [Member] | Level 3 [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 1,038,254 | 1,025,932 |
Subordinate Mortgage Portfolio Segment [Member] | Estimate of Fair Value Measurement [Member] | Level 3 [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 1,035,838 | 1,029,390 |
2019 Notes [Member] | Carrying Value [Member] | Level 3 [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes | (252,270) | (251,935) |
2019 Notes [Member] | Estimate of Fair Value Measurement [Member] | Level 3 [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes | (273,571) | (267,506) |
2022 Notes [Member] | Carrying Value [Member] | Level 3 [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes | (333,342) | (332,962) |
2022 Notes [Member] | Estimate of Fair Value Measurement [Member] | Level 3 [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes | $ (346,604) | $ (350,175) |
Net Income (Loss) per Share - B
Net Income (Loss) per Share - Basic and Diluted Net Income per Share of Common Stock Using Two-Class Method (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Numerator: | ||
Net income | $ 49,433 | $ 47,125 |
Preferred dividends | (6,835) | (9,310) |
Net income available to common stockholders | 42,598 | 37,815 |
Dividends declared on common stock | (56,577) | (42,146) |
Dividends on participating securities | (751) | (630) |
Net loss attributable to common stockholders | $ (14,730) | $ (4,961) |
Denominator: | ||
Basic weighted average shares of common stock outstanding (in shares) | 110,211,853 | 91,612,447 |
Diluted weighted average shares of common stock outstanding (in shares) | 111,871,429 | 92,998,250 |
Net income per weighted average share of common stock | ||
Distributable Earnings per share of common stock (in dollars per share) | $ 0.51 | $ 0.46 |
Undistributed loss per share of common stock (in dollars per share) | (0.13) | (0.05) |
Net income per share of common stock (in dollars per share) | $ 0.38 | $ 0.41 |
Net Income (Loss) Per Share - A
Net Income (Loss) Per Share - Additional Information (Details) - shares | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
RSU Vesting [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Unvested RSUs | 1,659,576 | 1,385,803 |
Subsequent Events (Details)
Subsequent Events (Details) £ in Millions | Apr. 27, 2018USD ($)extension | Mar. 31, 2017USD ($)extension | May 02, 2018USD ($) | Mar. 31, 2018USD ($) | Mar. 31, 2018GBP (£) | Dec. 31, 2017USD ($) | Mar. 31, 2017GBP (£) |
Subsequent Event [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Funded amount of mortgages | $ 20,400,000 | ||||||
Proceeds from loan repayments | 71,900,000 | ||||||
Commercial Mortgage Portfolio Segment [Member] | Subsequent Event [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Original face amount | 238,800,000 | ||||||
Funded amount of mortgages | $ 236,300,000 | ||||||
Line of Credit [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Maximum borrowing under facility | $ 2,277,906,000 | $ 2,290,139,000 | |||||
DB Repurchase Facility [Member] | Line of Credit [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Maximum borrowing under facility | $ 568,200,000 | ||||||
Debt instrument, number of extension available | extension | 1 | ||||||
General Facility [Member] | DB Repurchase Facility [Member] | Line of Credit [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Maximum borrowing under facility | $ 450,000,000 | £ 73.3 | |||||
Line of credit, amount outstanding | 102,400,000 | 450,000,000 | £ 45 | ||||
General Facility [Member] | DB Repurchase Facility [Member] | Line of Credit [Member] | Subsequent Event [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Maximum borrowing under facility | $ 800,000,000 | ||||||
Debt instrument, number of extension available | extension | 1 | ||||||
Extension option | 1 year | ||||||
Asset Specific Financing [Member] | DB Repurchase Facility [Member] | Line of Credit [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Line of credit, amount outstanding | $ 55,100,000 | $ 55,100,000 | £ 45 | ||||
Asset Specific Financing [Member] | DB Repurchase Facility [Member] | Line of Credit [Member] | Subsequent Event [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Line of credit, amount outstanding | $ 55,100,000 |