Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2019 | Oct. 22, 2019 | |
Cover page. | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2019 | |
Document Transition Report | false | |
Entity File Number | 001-34452 | |
Entity Registrant Name | Apollo Commercial Real Estate Finance, Inc. | |
Entity Incorporation, State or Country Code | MD | |
Entity Tax Identification Number | 27-0467113 | |
Entity Address, Address Line One | 9 West 57th Street | |
Entity Address, Address Line Two | 43rd Floor | |
Entity Address, City or Town | New York | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10019 | |
City Area Code | 212 | |
Local Phone Number | 515–3200 | |
Title of 12(b) Security | Common Stock, $0.01 par value | |
Trading Symbol | ARI | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Small Business Entity | false | |
Emerging Growth Company | false | |
Entity Shell Company | false | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0001467760 | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 153,537,296 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Assets: | ||
Cash and cash equivalents | $ 160,934 | $ 109,806 |
Commercial mortgage loans and subordinate loans and other lending assets, net | 6,114,574 | 4,927,593 |
Other assets | 37,858 | 33,720 |
Derivative assets, net | 35,729 | 23,700 |
Loan proceeds held by servicer | 3,323 | 1,000 |
Total Assets | 6,352,418 | 5,095,819 |
Liabilities: | ||
Secured debt arrangements, net (net of deferred financing costs of $18,031 and $17,555 in 2019 and 2018, respectively) | 2,541,287 | 1,879,522 |
Convertible senior notes, net | 560,589 | 592,000 |
Senior secured term loan, net (net of deferred financing costs of $7,452 and $0 in 2019 and 2018, respectively) | 488,947 | 0 |
Accounts payable, accrued expenses and other liabilities | 98,231 | 104,746 |
Derivative liabilities | 23,420 | 0 |
Payable to related party | 10,434 | 9,804 |
Total Liabilities | 3,722,908 | 2,586,072 |
Commitments and Contingencies (see Note 15) | ||
Stockholders’ Equity: | ||
Common stock, $0.01 par value, 450,000,000 shares authorized, 153,531,756 and 133,853,565 shares issued and outstanding in 2019 and 2018, respectively | 1,535 | 1,339 |
Additional paid-in-capital | 2,821,419 | 2,638,441 |
Accumulated deficit | (193,512) | (130,170) |
Total Stockholders’ Equity | 2,629,510 | 2,509,747 |
Total Liabilities and Stockholders’ Equity | 6,352,418 | 5,095,819 |
Commercial Mortgage Portfolio Segment | ||
Assets: | ||
Commercial mortgage loans and subordinate loans and other lending assets, net | 4,779,501 | 3,878,981 |
Subordinate Mortgage Portfolio Segment | ||
Assets: | ||
Commercial mortgage loans and subordinate loans and other lending assets, net | 1,335,073 | 1,048,612 |
Series B Preferred Stock | ||
Stockholders’ Equity: | ||
Preferred stock | 68 | 68 |
Series C Preferred Stock | ||
Stockholders’ Equity: | ||
Preferred stock | $ 0 | $ 69 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Deferred financing costs | $ 18,031 | $ 17,555 |
Deferred financing costs | $ 7,452 | $ 0 |
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) | 153,531,756 | 133,853,565 |
Common stock, shares outstanding (in shares) | 153,531,756 | 133,853,565 |
Series B Preferred Stock | ||
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, liquidation preference | $ 169,260 | $ 169,260 |
Series C Preferred Stock | ||
Preferred stock, shares issued (in shares) | 0 | 6,900,000 |
Preferred stock, shares outstanding (in shares) | 0 | 6,900,000 |
Preferred stock, liquidation preference | $ 0 | $ 172,500 |
Commercial Mortgage Portfolio Segment | ||
Loans pledged as collateral | $ 4,118,926 | $ 3,197,900 |
Condensed Consolidated Statemen
Condensed Consolidated Statement of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Net interest income: | ||||
Interest income from commercial mortgage loans | $ 81,136 | $ 71,179 | $ 236,880 | $ 188,434 |
Interest income from subordinate loans and other lending assets | 43,421 | 37,308 | 125,303 | 105,236 |
Interest expense | (39,341) | (31,007) | (109,147) | (82,184) |
Net interest income | 85,216 | 77,480 | 253,036 | 211,486 |
Operating expenses: | ||||
General and administrative expenses (includes equity-based compensation of $3,889 and $12,084 in 2019 and $4,048 and $11,404 in 2018, respectively) | (5,839) | (5,843) | (18,564) | (16,493) |
Management fees to related party | (10,434) | (9,515) | (30,306) | (26,620) |
Total operating expenses | (16,273) | (15,358) | (48,870) | (43,113) |
Other income | 429 | 427 | 1,431 | 973 |
Provision for loan losses and impairments, net of reversals | (35,000) | 0 | (20,000) | (5,000) |
Realized loss on investments | 0 | 0 | (12,513) | 0 |
Foreign currency loss | (19,129) | (4,050) | (20,012) | (23,574) |
Loss on early extinguishment of debt | 0 | (2,573) | 0 | (2,573) |
Net income | 29,089 | 62,217 | 158,271 | 166,996 |
Preferred dividends | (3,385) | (6,836) | (15,139) | (20,505) |
Net income available to common stockholders | $ 25,704 | $ 55,381 | $ 143,132 | $ 146,491 |
Net income per share of common stock: | ||||
Basic (in dollars per share) | $ 0.16 | $ 0.42 | $ 0.97 | $ 1.19 |
Diluted (in dollars per share) | $ 0.16 | $ 0.40 | $ 0.97 | $ 1.14 |
Basic weighted-average shares of common stock outstanding (in shares) | 153,531,678 | 129,188,343 | 144,638,237 | 120,876,240 |
Diluted weighted-average shares of common stock outstanding | 153,531,678 | 153,918,435 | 144,638,237 | 150,424,889 |
Dividend declared per share of common stock (in dollars per share) | $ 0.46 | $ 0.46 | $ 1.38 | $ 1.38 |
Forward Currency Contract | ||||
Operating expenses: | ||||
Gain (Loss) on derivatives | $ 24,153 | $ 6,291 | $ 28,619 | $ 28,797 |
Interest Rate Swap | ||||
Operating expenses: | ||||
Gain (Loss) on derivatives | $ (10,307) | $ 0 | $ (23,420) | $ 0 |
Condensed Consolidated Statem_2
Condensed Consolidated Statement of Operations (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Statement [Abstract] | ||||
General and administrative expenses, equity-based compensation | $ 3,889 | $ 4,048 | $ 12,084 | $ 11,404 |
Unrealized gain on foreign currency forward | $ 16,227 | $ 5,045 | $ 12,029 | $ 20,986 |
Condensed Consolidated Statem_3
Condensed Consolidated Statement of Changes in Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Preferred Stock | Common Stock | Additional Paid In Capital | Accumulated Deficit |
Stockholders' equity, beginning balance (in shares) at Dec. 31, 2017 | 13,670,393 | 107,121,235 | |||
Stockholders' equity, 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) | 374,580 | ||||
Capital increase (decrease) related to Equity Incentive Plan | 6,677 | $ 5 | 6,672 | ||
Issuance of common stock (in shares) | 15,525,000 | ||||
Issuance of common stock | 275,879 | $ 155 | 275,724 | ||
Conversions of convertible senior notes for common stock (in shares) | 10,744,577 | ||||
Conversions of convertible senior notes for common stock | 178,566 | $ 107 | 178,459 | ||
Offering costs | (465) | (465) | |||
Net income | 166,996 | 166,996 | |||
Dividends declared on preferred stock | (20,505) | (20,505) | |||
Dividends declared on common stock - $0.46 per share | (176,920) | (176,920) | |||
Stockholders' equity, ending balance (in shares) at Sep. 30, 2018 | 13,670,393 | 133,765,392 | |||
Stockholders' equity, ending balance at Sep. 30, 2018 | 2,518,371 | $ 137 | $ 1,338 | 2,630,468 | (113,572) |
Stockholders' equity, beginning balance (in shares) at Jun. 30, 2018 | 13,670,393 | 123,020,301 | |||
Stockholders' equity, beginning balance at Jun. 30, 2018 | 2,342,653 | $ 137 | $ 1,230 | 2,447,973 | (106,687) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Capital increase (decrease) related to Equity Incentive Plan (in shares) | 514 | ||||
Capital increase (decrease) related to Equity Incentive Plan | 4,049 | $ 1 | 4,048 | ||
Conversions of convertible senior notes for common stock (in shares) | 10,744,577 | ||||
Conversions of convertible senior notes for common stock | 178,566 | $ 107 | 178,459 | ||
Offering costs | (12) | (12) | |||
Net income | 62,217 | 62,217 | |||
Dividends declared on preferred stock | (6,836) | (6,836) | |||
Dividends declared on common stock - $0.46 per share | (62,266) | (62,266) | |||
Stockholders' equity, ending balance (in shares) at Sep. 30, 2018 | 13,670,393 | 133,765,392 | |||
Stockholders' equity, ending balance at Sep. 30, 2018 | 2,518,371 | $ 137 | $ 1,338 | 2,630,468 | (113,572) |
Stockholders' equity, beginning balance (in shares) at Dec. 31, 2018 | 13,670,393 | 133,853,565 | |||
Stockholders' equity, beginning balance at Dec. 31, 2018 | 2,509,747 | $ 137 | $ 1,339 | 2,638,441 | (130,170) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Capital increase (decrease) related to Equity Incentive Plan (in shares) | 460,830 | ||||
Capital increase (decrease) related to Equity Incentive Plan | 7,088 | $ 4 | 7,084 | ||
Issuance of common stock (in shares) | 17,250,000 | ||||
Issuance of common stock | 315,157 | $ 172 | 314,985 | ||
Redemption of preferred stock (in shares) | (6,900,000) | ||||
Redemption of preferred stock | (172,500) | $ (69) | (172,431) | ||
Conversions of convertible senior notes for common stock (in shares) | 1,967,361 | ||||
Conversions of convertible senior notes for common stock | 33,778 | $ 20 | 33,758 | ||
Offering costs | (418) | (418) | |||
Net income | 158,271 | 158,271 | |||
Dividends declared on preferred stock | (15,139) | (15,139) | |||
Dividends declared on common stock - $0.46 per share | (206,474) | (206,474) | |||
Stockholders' equity, ending balance (in shares) at Sep. 30, 2019 | 6,770,393 | 153,531,756 | |||
Stockholders' equity, ending balance at Sep. 30, 2019 | 2,629,510 | $ 68 | $ 1,535 | 2,821,419 | (193,512) |
Stockholders' equity, beginning balance (in shares) at Jun. 30, 2019 | 6,770,393 | 153,531,597 | |||
Stockholders' equity, beginning balance at Jun. 30, 2019 | 2,671,399 | $ 68 | $ 1,535 | 2,817,542 | (147,746) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Capital increase (decrease) related to Equity Incentive Plan (in shares) | 159 | ||||
Capital increase (decrease) related to Equity Incentive Plan | 3,889 | 3,889 | |||
Offering costs | (12) | (12) | |||
Net income | 29,089 | 29,089 | |||
Dividends declared on preferred stock | (3,385) | (3,385) | |||
Dividends declared on common stock - $0.46 per share | (71,470) | (71,470) | |||
Stockholders' equity, ending balance (in shares) at Sep. 30, 2019 | 6,770,393 | 153,531,756 | |||
Stockholders' equity, ending balance at Sep. 30, 2019 | $ 2,629,510 | $ 68 | $ 1,535 | $ 2,821,419 | $ (193,512) |
Condensed Consolidated Statem_4
Condensed Consolidated Statement of Changes in Stockholders' Equity (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Stockholders' Equity [Abstract] | ||||
Dividends declared on common stock (in dollars per share) | $ 0.46 | $ 0.46 | $ 0.46 | $ 0.46 |
Condensed Consolidated Statem_5
Condensed Consolidated Statement of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | |
Cash flows (used in) provided by operating activities: | ||||||
Net income | $ 29,089 | $ 62,217 | $ 158,271 | $ 166,996 | ||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||
Amortization of discount/premium and PIK | (61,949) | (46,103) | ||||
Amortization of deferred financing costs | 8,535 | 8,204 | ||||
Equity-based compensation | 7,084 | 6,672 | ||||
Provision for loan losses and impairments, net of reversal | 35,000 | 0 | 20,000 | 5,000 | ||
Realized loss on investments | 12,513 | 0 | ||||
Foreign currency loss | 22,111 | 22,162 | ||||
Unrealized (gain) loss on derivative instruments | 11,391 | (20,986) | ||||
Loss on early extinguishment of debt | 0 | 2,573 | ||||
Changes in operating assets and liabilities: | ||||||
Proceeds received from PIK | 11,469 | 75,652 | ||||
Other assets | (4,216) | (8,476) | ||||
Accounts payable, accrued expenses and other liabilities | 2,462 | 8,087 | ||||
Payable to related party | 630 | 1,347 | ||||
Net cash (used in) provided by operating activities | 188,301 | 221,128 | ||||
Cash flows used in investing activities: | ||||||
New funding of commercial mortgage loans | (1,277,606) | (1,382,440) | ||||
Add-on funding of commercial mortgage loans | (271,720) | (90,201) | ||||
New funding of subordinate loans and other lending assets | (493,017) | (207,683) | ||||
Add-on funding of subordinate loans and other lending assets | (18,323) | (84,852) | ||||
Proceeds and payments received on commercial mortgage loans | 570,305 | 356,865 | ||||
Proceeds and payments received on subordinate loans and other lending assets, net | 254,019 | 463,524 | ||||
Origination and exit fees received on commercial mortgage loans, and subordinate loans and other lending assets, net | 24,524 | 32,473 | ||||
(Decrease) Increase in collateral held related to derivative contracts | (19,830) | 4,930 | ||||
Net cash (used in) provided by investing activities | (1,231,648) | (907,384) | ||||
Cash flows from financing activities: | ||||||
Proceeds from issuance of common stock | 315,157 | 275,879 | ||||
Redemption of preferred stock | (172,500) | 0 | ||||
Payment of offering costs | (153) | (199) | ||||
Proceeds from secured debt arrangements | 1,948,037 | 1,623,186 | ||||
Repayments of secured debt arrangements | (1,264,223) | (941,662) | ||||
Repayments of senior secured term loan principal | (1,300) | (1,250) | 0 | |||
Proceeds from issuance of senior secured term loan | 497,500 | 0 | ||||
Exchanges of convertible senior notes | (704) | (40,461) | ||||
Payment of deferred financing costs | (11,043) | (11,545) | ||||
Dividends on common stock | (197,757) | (176,920) | ||||
Dividends on preferred stock | (18,589) | (20,505) | ||||
Net cash (used in) provided by financing activities | 1,094,475 | 707,773 | ||||
Net increase in cash and cash equivalents | 51,128 | 21,517 | ||||
Cash and cash equivalents, beginning of period | $ 99,188 | 109,806 | 77,671 | $ 99,188 | ||
Cash and cash equivalents, end of period | 160,934 | $ 109,806 | 99,188 | 160,934 | 99,188 | 160,934 |
Supplemental disclosure of cash flow information: | ||||||
Interest paid | 96,201 | 77,219 | ||||
Supplemental disclosure of non-cash financing activities: | ||||||
Exchange of convertible senior notes for common stock | 33,778 | 178,567 | ||||
Dividend declared, not yet paid | 74,855 | 68,536 | 74,855 | 68,536 | 74,855 | |
Offering costs payable | $ 200 | $ 265 | 200 | 265 | $ 200 | |
Loan proceeds held by servicer | 3,323 | 0 | ||||
Deferred financing costs, not yet paid | $ 5,420 | $ 0 |
Organization
Organization | 9 Months Ended |
Sep. 30, 2019 | |
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. These asset classes are referred to as our target assets. We were formed in Maryland on June 29, 2009 , commenced operations on September 29, 2009 and are externally managed and advised by ACREFI Management, LLC (the "Manager"), an indirect subsidiary of Apollo Global Management, Inc. (together with its subsidiaries, "Apollo"). We 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 our tax qualification as a REIT, we are required to distribute at least 90% of our 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 | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation The accompanying condensed consolidated financial statements include our accounts and those of our 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. Our 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 our Annual Report on Form 10-K for the year ended December 31, 2018 , 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 our financial position, results of operations and cash flows have been included. Our results of operations for the three and nine months ended September 30, 2019 are not necessarily indicative of the results to be expected for the full year or any other future period. We currently operate in one reporting segment. Interest Income Recognition Interest income on our lending assets is accrued based on the actual coupon rate adjusted for accretion of any purchase discounts, the amortization of any purchase premiums and the accretion of any deferred fees, in accordance with GAAP. Loans that have been assigned a risk rating of 4 or 5, discussed in " Note 4 - Commercial Mortgage, Subordinate Loans and Other Lending Assets, Net," may be placed on non-accrual. When a loan is placed on non-accrual, interest is only recorded as interest income when it's received. Under certain circumstances, we may apply cost recovery under which interest collected on a loan is a reduction to its amortized cost. The cost recovery method will no longer apply if collection of all principal and interest is reasonably assured. Recent Accounting Pronouncements In June 2018, the Financial Accounting Standards Board ("FASB") issued ASU 2018-07 "Compensation - Stock Compensation (Topic 718): Improvements to Nonemployees Share-Based Payment Accounting" ("ASU 2018-07"). The intention of ASU 2018-07 is to expand the scope of Topic 718 to include share-based payment transactions in exchange for goods and services from nonemployees. These share-based payments will now be measured at grant-date fair value of the equity instrument issued. Upon adoption, only liability-classified awards that have not been settled and equity-classified awards for which a measurement date has not been established should be remeasured through a cumulative-effect adjustment to retained earnings as of the beginning of the fiscal year of adoption. ASU 2018-07 is effective for fiscal years beginning after December 15, 2018 and is applied retrospectively. We adopted ASU 2018-07 in the first quarter of 2019 and it did not have any impact on our condensed consolidated financial statements. |
Fair Value Disclosure
Fair Value Disclosure | 9 Months Ended |
Sep. 30, 2019 | |
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 we anticipate that our 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. We 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 our derivative instruments are determined using a discounted cash flow analysis on the expected cash flows of each derivative. 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 fair value of the interest rate swap is determined by comparing the present value of remaining fixed payments to the present value of expected floating rate payments based on the forward one-month LIBOR curve. Our 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 our financial instruments were categorized as of September 30, 2019 and December 31, 2018 ($ in thousands): Fair Value as of September 30, 2019 Fair Value as of December 31, 2018 Level I Level II Level III Total Level I Level II Level III Total Foreign currency forward assets, net $ — $ 35,729 $ — $ 35,729 $ — $ 23,700 $ — $ 23,700 Interest rate swap liability — (23,420 ) — (23,420 ) — — — — |
Commercial Mortgage, Subordinat
Commercial Mortgage, Subordinate Loans and Other Lending Assets, Net | 9 Months Ended |
Sep. 30, 2019 | |
Receivables [Abstract] | |
Commercial Mortgage, Subordinate Loans and Other Lending Assets, Net | Commercial Mortgage, Subordinate Loans and Other Lending Assets, Net Our loan portfolio was comprised of the following at September 30, 2019 and December 31, 2018 ($ in thousands): Loan Type September 30, 2019 December 31, 2018 Commercial mortgage loans, net $ 4,779,501 $ 3,878,981 Subordinate loans and other lending assets, net 1,335,073 1,048,612 Total investments, net $ 6,114,574 $ 4,927,593 Our loan portfolio consisted of 94% and 91% floating rate loans, based on amortized cost, as of September 30, 2019 and December 31, 2018 , respectively. Activity relating to our loan investment portfolio, for the nine months ended September 30, 2019 , was as follows ($ in thousands): Principal Balance Deferred Fees/Other Items (1) Provision for Loan Loss (2) Carrying Value December 31, 2018 $ 4,982,514 $ (17,940 ) $ (36,981 ) $ 4,927,593 New loan fundings 1,770,623 — — 1,770,623 Add-on loan fundings (3) 290,043 — — 290,043 Loan repayments (843,417 ) — — (843,417 ) Gain (loss) on foreign currency translation (38,505 ) 105 — (38,400 ) Realized loss on investment, net of provision for loan loss reversal (2) (12,513 ) — 15,000 2,487 Provision for loan losses — — (35,000 ) (35,000 ) Deferred fees — (24,524 ) — (24,524 ) PIK interest and amortization of fees 43,728 21,441 — 65,169 September 30, 2019 $ 6,192,473 $ (20,918 ) $ (56,981 ) $ 6,114,574 ——————— (1) Other items primarily consist of purchase discounts or premiums, exit fees and deferred origination expenses. (2) In addition to the $57.0 million provision for loan loss, we recorded an impairment of $3.0 million against an investment previously recorded under other assets on our condensed consolidated balance sheet. During the second quarter of 2019, the underlying collateral on a commercial mortgage loan and a contiguous subordinate loan secured by a multifamily property located in Williston, ND was sold resulting in a realized loss of $12.5 million . Consequently, the previously recorded $15.0 million loan loss provision was reversed. (3) Represents fundings for loans closed prior to 2019 . The following table details overall statistics for our loan portfolio at the dates indicated ($ in thousands): September 30, 2019 December 31, 2018 Number of loans 74 69 Principal balance $ 6,192,473 $ 4,982,514 Carrying value $ 6,114,574 $ 4,927,593 Unfunded loan commitments (1) $ 1,073,423 $ 1,095,598 Weighted-average cash coupon (2) 7.5 % 8.4 % Weighted-average remaining term (3) 3.1 years 2.8 years ——————— (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. (3) Assumes all extension options are exercised. Property Type The table below details the property type of the properties securing the loans in our portfolio at the dates indicated ($ in thousands): September 30, 2019 December 31, 2018 Property Type Carrying % of Carrying % of Hotel $ 1,579,667 25.8 % $ 1,286,590 26.1 % Residential-for-sale: construction 629,069 10.3 % 528,510 10.7 % Residential-for-sale: inventory 349,259 5.7 % 577,053 11.7 % Office 1,406,678 23.0 % 832,620 16.9 % Urban Predevelopment 602,946 9.9 % 683,886 13.9 % Urban Retail 466,343 7.6 % — — % Multifamily 306,142 5.0 % 448,899 9.1 % Industrial 227,696 3.7 % 32,000 0.6 % Retail Center 126,068 2.1 % 156,067 3.2 % Healthcare 190,832 3.1 % 156,814 3.2 % Other 127,229 2.1 % 151,197 3.1 % Mixed Use 102,645 1.7 % 73,957 1.5 % Total $ 6,114,574 100.0 % $ 4,927,593 100.0 % Geography The table below details the geographic distribution of the properties securing the loans in our portfolio at the dates indicated ($ in thousands): September 30, 2019 December 31, 2018 Geographic Location Carrying % of Carrying % of Manhattan, NY $ 2,286,709 37.4 % $ 1,669,145 33.9 % Brooklyn, NY 443,966 7.3 % 346,056 7.0 % Northeast 19,195 0.3 % 23,479 0.5 % West 728,788 11.9 % 614,160 12.5 % Midwest 626,867 10.3 % 631,710 12.8 % Southeast 568,103 9.3 % 559,043 11.3 % Southwest 126,506 2.1 % 96,345 2.0 % Mid Atlantic 110,895 1.8 % 211,775 4.3 % United Kingdom 815,168 13.3 % 700,460 14.2 % Germany 185,208 3.0 % — — % Italy 129,524 2.1 % — — % Other International 73,645 1.2 % 75,420 1.5 % Total $ 6,114,574 100.0 % $ 4,927,593 100.0 % Risk Rating We assess the risk factors of each loan and assign 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 our internal risk ratings at the dates indicated ($ in thousands): September 30, 2019 December 31, 2018 Risk Rating Number of Loans Carrying Value % of Loan Portfolio Number of Loans Carrying Value % of Loan Portfolio 1 — $ — — % — $ — — % 2 9 470,409 8 % 3 138,040 3 % 3 63 5,502,402 90 % 63 4,573,930 93 % 4 — — — % — — — % 5 2 141,763 2 % 3 215,623 4 % 74 $ 6,114,574 100 % 69 $ 4,927,593 100 % Weighted-average risk rating 3.0 3.1 Provision for Loan Losses and Impairments We evaluate our loans for possible impairment on a quarterly basis. We regularly evaluate 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. We also evaluate the financial wherewithal of any loan guarantors as well as the borrower’s competency in managing and operating the properties. In addition, we consider 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 we will not be able to collect all amounts due according to the contractual terms of the loan. We evaluate modifications to our loan portfolio to determine if the modifications constitute a troubled debt restructuring ("TDR") and/or substantial modification, under ASC 310, "Receivables." During the second quarter of 2018, we determined that a modification of one commercial mortgage loan, secured by a retail center in Cincinnati, OH, with a principal balance of $171.2 million constituted a TDR as the interest rate spread was reduced from 5.5% over LIBOR to 3.0% over LIBOR. The entity in which we own an interest and which owns the underlying property was deemed to be a variable interest entity ("VIE") and it was determined that we are not the primary beneficiary of that VIE. During the fourth quarter of 2018, we recorded a loan loss provision of $15.0 million and due to factors including continued weakness in the retail sector, we recorded an additional $32.0 million loan loss provision during the third quarter of 2019, bringing the total provision for loan loss to $47.0 million . The carrying value, as a result of the provision, of the loan was $126.1 million and $156.1 million as of September 30, 2019 and December 31, 2018 , respectively. 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 the direct capitalization method. The significant unobservable input used in determining the collateral value was the capitalization rate which was 7.75% and 6.75% as of September 30, 2019 and December 31, 2018 , respectively. Effective September 30, 2019, we ceased accruing all interest associated with the loan and account for the loan on a cost-recovery basis (all proceeds are applied towards the carrying value of the loan for accounting purposes). As of September 30, 2019 and December 31, 2018 , this loan was assigned a risk rating of 5 . We recorded a $13.0 million loan loss provision and impairment against a commercial mortgage loan secured by fully-built, for-sale residential condominium units located in Bethesda, MD. Each of the loan loss provisions were due to factors including slower than expected sales pace of the underlying condominium units and were comprised of (i) $3.0 million loan loss recorded during the third quarter of 2019, (ii) $5.0 million loan loss recorded during the second quarter of 2018, and (iii) $2.0 million loan loss provision and $3.0 million of impairment recorded during the second quarter of 2017. The impairment was recorded on an investment previously recorded under other assets on our condensed consolidated balance sheet. After the loan loss provisions and related impairment, the amortized cost balance of the loan was $15.7 million and $27.2 million as of September 30, 2019 and December 31, 2018 , respectively. 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 $597 and $662 per square foot across properties and 10% and 15% as of September 30, 2019 and December 31, 2018 , respectively. Effective April 1, 2017, we ceased accruing all interest associated with the loan and account for the loan on a cost-recovery basis. As of September 30, 2019 and December 31, 2018 , this loan was assigned a risk rating of 5 . During 2016, we 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. We ceased accruing interest associated with the loan and only recognized interest income upon receipt of cash. As of December 31, 2018 , the amortized cost of the loan, net of the loan loss provision, was $32.4 million and was assigned a risk rating of 5. During the second quarter of 2019, the underlying collateral was sold resulting in a realized loss of $12.5 million . Consequently, the previously recorded $15.0 million loan loss provision was reversed. As of September 30, 2019 and December 31, 2018 , the aggregate loan loss provision was $57.0 million and $37.0 million for commercial mortgage loans and subordinate loans, respectively. Other Loan and Lending Assets Activity During the year ended December 31, 2018 , we sold a $75.0 million ( $17.7 million funded) subordinate position of our $265.0 million loans for the construction of an office campus in Renton, Washington. As of September 30, 2019 , our exposure to the property is limited to a $190.0 million ( $121.8 million funded) mortgage loan. This transaction was evaluated under ASC 860 "Transfers and Servicing" and we determined that it qualifies as a sale and accounted for as such. We recognized payment-in-kind ("PIK") interest of $13.7 million and $42.8 million for the three and nine months ended September 30, 2019 , respectively, and $10.2 million and $29.9 million for the three and nine months ended September 30, 2018 , respectively. We recognized $0.3 million and $4.0 million pre-payment penalties and accelerated fees for the three and nine months ended September 30, 2019 , respectively and $0.2 million and $1.8 million for the three and nine months ended September 30, 2018 , respectively. Our portfolio includes two other lending assets, which are subordinate risk retention interests in securitization vehicles. The underlying mortgages related to our subordinate risk retention interests are secured by a portfolio of properties located throughout the United States. Our maximum exposure to loss from the subordinate risk retention interests is limited to the book value of such interests of $68.3 million as of September 30, 2019 . These interests have a weighted average maturity of 7.07 years. We are not obligated to provide, and do not intend to provide financial support to these subordinate risk retention interests. Both interests are accounted for as held-to-maturity and recorded at amortized cost on the condensed consolidated balance sheet. We did not hold any collateral securing our subordinate risk retention interests as of December 31, 2018. Loan proceeds held by servicer represents principal payments held by our 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 were $3.3 million and $1.0 million as of September 30, 2019 and December 31, 2018 |
Loan Proceeds Held by Servicer
Loan Proceeds Held by Servicer | 9 Months Ended |
Sep. 30, 2019 | |
Receivables [Abstract] | |
Loan Proceeds Held by Servicer | Commercial Mortgage, Subordinate Loans and Other Lending Assets, Net Our loan portfolio was comprised of the following at September 30, 2019 and December 31, 2018 ($ in thousands): Loan Type September 30, 2019 December 31, 2018 Commercial mortgage loans, net $ 4,779,501 $ 3,878,981 Subordinate loans and other lending assets, net 1,335,073 1,048,612 Total investments, net $ 6,114,574 $ 4,927,593 Our loan portfolio consisted of 94% and 91% floating rate loans, based on amortized cost, as of September 30, 2019 and December 31, 2018 , respectively. Activity relating to our loan investment portfolio, for the nine months ended September 30, 2019 , was as follows ($ in thousands): Principal Balance Deferred Fees/Other Items (1) Provision for Loan Loss (2) Carrying Value December 31, 2018 $ 4,982,514 $ (17,940 ) $ (36,981 ) $ 4,927,593 New loan fundings 1,770,623 — — 1,770,623 Add-on loan fundings (3) 290,043 — — 290,043 Loan repayments (843,417 ) — — (843,417 ) Gain (loss) on foreign currency translation (38,505 ) 105 — (38,400 ) Realized loss on investment, net of provision for loan loss reversal (2) (12,513 ) — 15,000 2,487 Provision for loan losses — — (35,000 ) (35,000 ) Deferred fees — (24,524 ) — (24,524 ) PIK interest and amortization of fees 43,728 21,441 — 65,169 September 30, 2019 $ 6,192,473 $ (20,918 ) $ (56,981 ) $ 6,114,574 ——————— (1) Other items primarily consist of purchase discounts or premiums, exit fees and deferred origination expenses. (2) In addition to the $57.0 million provision for loan loss, we recorded an impairment of $3.0 million against an investment previously recorded under other assets on our condensed consolidated balance sheet. During the second quarter of 2019, the underlying collateral on a commercial mortgage loan and a contiguous subordinate loan secured by a multifamily property located in Williston, ND was sold resulting in a realized loss of $12.5 million . Consequently, the previously recorded $15.0 million loan loss provision was reversed. (3) Represents fundings for loans closed prior to 2019 . The following table details overall statistics for our loan portfolio at the dates indicated ($ in thousands): September 30, 2019 December 31, 2018 Number of loans 74 69 Principal balance $ 6,192,473 $ 4,982,514 Carrying value $ 6,114,574 $ 4,927,593 Unfunded loan commitments (1) $ 1,073,423 $ 1,095,598 Weighted-average cash coupon (2) 7.5 % 8.4 % Weighted-average remaining term (3) 3.1 years 2.8 years ——————— (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. (3) Assumes all extension options are exercised. Property Type The table below details the property type of the properties securing the loans in our portfolio at the dates indicated ($ in thousands): September 30, 2019 December 31, 2018 Property Type Carrying % of Carrying % of Hotel $ 1,579,667 25.8 % $ 1,286,590 26.1 % Residential-for-sale: construction 629,069 10.3 % 528,510 10.7 % Residential-for-sale: inventory 349,259 5.7 % 577,053 11.7 % Office 1,406,678 23.0 % 832,620 16.9 % Urban Predevelopment 602,946 9.9 % 683,886 13.9 % Urban Retail 466,343 7.6 % — — % Multifamily 306,142 5.0 % 448,899 9.1 % Industrial 227,696 3.7 % 32,000 0.6 % Retail Center 126,068 2.1 % 156,067 3.2 % Healthcare 190,832 3.1 % 156,814 3.2 % Other 127,229 2.1 % 151,197 3.1 % Mixed Use 102,645 1.7 % 73,957 1.5 % Total $ 6,114,574 100.0 % $ 4,927,593 100.0 % Geography The table below details the geographic distribution of the properties securing the loans in our portfolio at the dates indicated ($ in thousands): September 30, 2019 December 31, 2018 Geographic Location Carrying % of Carrying % of Manhattan, NY $ 2,286,709 37.4 % $ 1,669,145 33.9 % Brooklyn, NY 443,966 7.3 % 346,056 7.0 % Northeast 19,195 0.3 % 23,479 0.5 % West 728,788 11.9 % 614,160 12.5 % Midwest 626,867 10.3 % 631,710 12.8 % Southeast 568,103 9.3 % 559,043 11.3 % Southwest 126,506 2.1 % 96,345 2.0 % Mid Atlantic 110,895 1.8 % 211,775 4.3 % United Kingdom 815,168 13.3 % 700,460 14.2 % Germany 185,208 3.0 % — — % Italy 129,524 2.1 % — — % Other International 73,645 1.2 % 75,420 1.5 % Total $ 6,114,574 100.0 % $ 4,927,593 100.0 % Risk Rating We assess the risk factors of each loan and assign 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 our internal risk ratings at the dates indicated ($ in thousands): September 30, 2019 December 31, 2018 Risk Rating Number of Loans Carrying Value % of Loan Portfolio Number of Loans Carrying Value % of Loan Portfolio 1 — $ — — % — $ — — % 2 9 470,409 8 % 3 138,040 3 % 3 63 5,502,402 90 % 63 4,573,930 93 % 4 — — — % — — — % 5 2 141,763 2 % 3 215,623 4 % 74 $ 6,114,574 100 % 69 $ 4,927,593 100 % Weighted-average risk rating 3.0 3.1 Provision for Loan Losses and Impairments We evaluate our loans for possible impairment on a quarterly basis. We regularly evaluate 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. We also evaluate the financial wherewithal of any loan guarantors as well as the borrower’s competency in managing and operating the properties. In addition, we consider 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 we will not be able to collect all amounts due according to the contractual terms of the loan. We evaluate modifications to our loan portfolio to determine if the modifications constitute a troubled debt restructuring ("TDR") and/or substantial modification, under ASC 310, "Receivables." During the second quarter of 2018, we determined that a modification of one commercial mortgage loan, secured by a retail center in Cincinnati, OH, with a principal balance of $171.2 million constituted a TDR as the interest rate spread was reduced from 5.5% over LIBOR to 3.0% over LIBOR. The entity in which we own an interest and which owns the underlying property was deemed to be a variable interest entity ("VIE") and it was determined that we are not the primary beneficiary of that VIE. During the fourth quarter of 2018, we recorded a loan loss provision of $15.0 million and due to factors including continued weakness in the retail sector, we recorded an additional $32.0 million loan loss provision during the third quarter of 2019, bringing the total provision for loan loss to $47.0 million . The carrying value, as a result of the provision, of the loan was $126.1 million and $156.1 million as of September 30, 2019 and December 31, 2018 , respectively. 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 the direct capitalization method. The significant unobservable input used in determining the collateral value was the capitalization rate which was 7.75% and 6.75% as of September 30, 2019 and December 31, 2018 , respectively. Effective September 30, 2019, we ceased accruing all interest associated with the loan and account for the loan on a cost-recovery basis (all proceeds are applied towards the carrying value of the loan for accounting purposes). As of September 30, 2019 and December 31, 2018 , this loan was assigned a risk rating of 5 . We recorded a $13.0 million loan loss provision and impairment against a commercial mortgage loan secured by fully-built, for-sale residential condominium units located in Bethesda, MD. Each of the loan loss provisions were due to factors including slower than expected sales pace of the underlying condominium units and were comprised of (i) $3.0 million loan loss recorded during the third quarter of 2019, (ii) $5.0 million loan loss recorded during the second quarter of 2018, and (iii) $2.0 million loan loss provision and $3.0 million of impairment recorded during the second quarter of 2017. The impairment was recorded on an investment previously recorded under other assets on our condensed consolidated balance sheet. After the loan loss provisions and related impairment, the amortized cost balance of the loan was $15.7 million and $27.2 million as of September 30, 2019 and December 31, 2018 , respectively. 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 $597 and $662 per square foot across properties and 10% and 15% as of September 30, 2019 and December 31, 2018 , respectively. Effective April 1, 2017, we ceased accruing all interest associated with the loan and account for the loan on a cost-recovery basis. As of September 30, 2019 and December 31, 2018 , this loan was assigned a risk rating of 5 . During 2016, we 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. We ceased accruing interest associated with the loan and only recognized interest income upon receipt of cash. As of December 31, 2018 , the amortized cost of the loan, net of the loan loss provision, was $32.4 million and was assigned a risk rating of 5. During the second quarter of 2019, the underlying collateral was sold resulting in a realized loss of $12.5 million . Consequently, the previously recorded $15.0 million loan loss provision was reversed. As of September 30, 2019 and December 31, 2018 , the aggregate loan loss provision was $57.0 million and $37.0 million for commercial mortgage loans and subordinate loans, respectively. Other Loan and Lending Assets Activity During the year ended December 31, 2018 , we sold a $75.0 million ( $17.7 million funded) subordinate position of our $265.0 million loans for the construction of an office campus in Renton, Washington. As of September 30, 2019 , our exposure to the property is limited to a $190.0 million ( $121.8 million funded) mortgage loan. This transaction was evaluated under ASC 860 "Transfers and Servicing" and we determined that it qualifies as a sale and accounted for as such. We recognized payment-in-kind ("PIK") interest of $13.7 million and $42.8 million for the three and nine months ended September 30, 2019 , respectively, and $10.2 million and $29.9 million for the three and nine months ended September 30, 2018 , respectively. We recognized $0.3 million and $4.0 million pre-payment penalties and accelerated fees for the three and nine months ended September 30, 2019 , respectively and $0.2 million and $1.8 million for the three and nine months ended September 30, 2018 , respectively. Our portfolio includes two other lending assets, which are subordinate risk retention interests in securitization vehicles. The underlying mortgages related to our subordinate risk retention interests are secured by a portfolio of properties located throughout the United States. Our maximum exposure to loss from the subordinate risk retention interests is limited to the book value of such interests of $68.3 million as of September 30, 2019 . These interests have a weighted average maturity of 7.07 years. We are not obligated to provide, and do not intend to provide financial support to these subordinate risk retention interests. Both interests are accounted for as held-to-maturity and recorded at amortized cost on the condensed consolidated balance sheet. We did not hold any collateral securing our subordinate risk retention interests as of December 31, 2018. Loan proceeds held by servicer represents principal payments held by our 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 were $3.3 million and $1.0 million as of September 30, 2019 and December 31, 2018 |
Other Assets
Other Assets | 9 Months Ended |
Sep. 30, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets | Other Assets The following table details the components of our other assets at the dates indicated ($ in thousands): September 30, 2019 December 31, 2018 Interest receivable $ 36,908 $ 33,399 Other 950 321 Total $ 37,858 $ 33,720 |
Secured Debt Arrangements, Net
Secured Debt Arrangements, Net | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Secured Debt Arrangements, Net | Secured Debt Arrangements, Net At September 30, 2019 and December 31, 2018 , our borrowings had the following secured debt arrangements, maturities and weighted-average interest rates ($ in thousands): September 30, 2019 (2) December 31, 2018 (2) Maximum Amount of Borrowings Borrowings Outstanding Maturity (1) Maximum Amount of Borrowings Borrowings Outstanding Maturity (1) JPMorgan Facility (USD) $ 1,253,271 $ 1,067,635 June 2024 $ 1,333,503 $ 680,141 June 2021 JPMorgan Facility (GBP) 46,729 46,729 June 2024 48,497 48,497 June 2021 DB Repurchase Facility (USD) 1,116,993 558,905 March 2021 904,181 419,823 March 2021 DB Repurchase Facility (GBP) 133,007 133,007 March 2021 150,819 150,819 March 2021 Goldman Facility 500,000 267,711 November 2021 300,000 210,072 November 2020 CS Facility - USD 174,279 174,279 March 2020 187,117 187,117 June 2019 CS Facility - GBP 124,707 124,707 March 2020 151,773 151,773 June 2019 HSBC Facility - GBP 36,621 36,621 December 2019 48,835 48,835 December 2019 HSBC Facility - EUR 149,724 149,724 January 2021 — — N/A Sub-total 3,535,331 2,559,318 3,124,725 1,897,077 less: deferred financing costs N/A (18,031 ) N/A (17,555 ) Total / Weighted-Average $ 3,535,331 $ 2,541,287 $ 3,124,725 $ 1,879,522 ——————— (1) Maturity date assumes extensions at our option are exercised. (2) Weighted-average rates as of September 30, 2019 and December 31, 2018 were USD L + 2.09% / GBP L + 2.31% / EUR L + 1.35% and USD L + 2.17% / GBP L + 2.28% , respectively. JPMorgan Facility In May 2017, through two indirect wholly-owned subsidiaries, we entered into a Fifth Amended and Restated Master Repurchase Agreement with JPMorgan Chase Bank, National Association (as amended, the "JPMorgan Facility"). During the third quarter of 2019, we amended the JPMorgan Facility to allow for $1.3 billion of maximum borrowings and maturity in June 2022, plus two one-year extensions available at our option, subject to certain conditions. The JPMorgan Facility enables us to elect to receive advances in U.S. dollars ("USD"), British pounds ("GBP"), or Euros ("EUR"). Margin calls may occur any time at specified aggregate margin deficit thresholds. We have agreed to provide a limited guarantee of the obligations of our indirect wholly-owned subsidiaries under the JPMorgan Facility. As of September 30, 2019 , we had $1.1 billion (including £38.0 million assuming conversion into USD) of borrowings outstanding under the JPMorgan Facility secured by certain of our commercial mortgage loans. DB Repurchase Facility In April 2018, through an indirect wholly-owned subsidiary, we entered into a Second Amended and Restated Master Repurchase Agreement with Deutsche Bank AG, Cayman Islands Branch and Deutsche Bank AG, London Branch (as amended, the "DB Repurchase Facility"), which was upsized in September 2019, and provides for advances of up to $1.25 billion 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 us to elect to receive advances in USD, GBP, or EUR. The repurchase facility matures in March 2020 , plus a one-year extension available at our option, subject to certain conditions. Margin calls may occur any time at specified aggregate margin deficit thresholds. We have agreed to provide a limited guarantee of the obligations of our indirect wholly-owned subsidiaries under this facility. As of September 30, 2019 , we had $691.9 million (including £108.2 million assuming conversion into USD) of borrowings outstanding under the DB Repurchase Facility secured by certain of our commercial mortgage loans. Goldman Facility In November 2017, through an indirect wholly-owned subsidiary, we entered into a master repurchase and securities contract agreement with Goldman Sachs Bank USA (the "Goldman Facility"), which was upsized in March 2019 from $300.0 million to $500.0 million and matures in November 2019 , plus two one-year extensions available at our option, subject to certain conditions. Margin calls may occur any time at specified margin deficit thresholds. We have agreed to provide a limited guarantee of the obligations of our indirect wholly-owned subsidiaries under this facility. As of September 30, 2019 , we had $267.7 million of borrowings outstanding under the Goldman Facility. CS Facility - USD In July 2018, through an indirect wholly-owned subsidiary, we entered into a Master Repurchase Agreement with Credit Suisse AG, acting through its Cayman Islands Branch and Alpine Securitization Ltd (the "CS Facility - USD"), which provides for advances for the sale and repurchase of eligible commercial mortgage loans secured by real estate. The CS Facility - USD matures six months after either party notifies the other party of intention to terminate. Margin calls may occur any time at specified aggregate margin deficit thresholds. We have agreed to provide a guarantee of the obligations of our indirect wholly-owned subsidiary under this facility. As of September 30, 2019 , we had $174.3 million of borrowings outstanding under the CS Facility - USD secured by certain of our commercial mortgage loans. CS Facility - GBP In June 2018, through an indirect wholly-owned subsidiary, we entered into a Master Repurchase Agreement with Credit Suisse AG, acting through its Cayman Islands Branch and Alpine Securitization Ltd (the "CS Facility - GBP"), which provides for advances for the sale and repurchase of eligible commercial mortgage loans secured by real estate. The CS Facility - GBP matures six months after either party notifies the other party of intention to terminate. Margin calls may occur any time at specified aggregate margin deficit thresholds. We have agreed to provide a guarantee of the obligations of our indirect wholly-owned subsidiary under this facility. As of September 30, 2019 , we had $124.7 million ( £101.5 million assuming conversion into USD) of borrowings outstanding under the CS Facility - GBP secured by one of our commercial mortgage loans. HSBC Facility - GBP In September 2018, through an indirect wholly-owned subsidiary, we entered into a secured debt arrangement with HSBC Bank plc (the "HSBC Facility - GBP"), which provides for a single asset financing. The facility matures in December 2019 . Margin calls may occur any time at specified aggregate margin deficit thresholds. We have agreed to provide a guarantee of the obligations of our indirect wholly-owned subsidiary under this facility. As of September 30, 2019 , we had $36.6 million ( £29.8 million assuming conversion into USD) of borrowings outstanding under the HSBC Facility - GBP secured by one of our commercial mortgage loans. HSBC Facility - EUR In July 2019, through an indirect wholly-owned subsidiary, we entered into a secured debt arrangement with HSBC Bank plc (the "HSBC Facility - EUR"), which provides for a single asset financing. The facility matures in January 2021 . Margin calls may occur any time at specified aggregate margin deficit thresholds. We have agreed to provide a guarantee of the obligations of our indirect wholly-owned subsidiary under this facility. As of September 30, 2019 , we had $149.7 million ( €137.4 million assuming conversion into USD) of borrowings outstanding under the HSBC Facility - EUR secured by one of our commercial mortgage loans. At September 30, 2019 , our borrowings had the following remaining maturities ($ in thousands): Less than (1) 1 to 3 (1) 3 to 5 (1) More than Total JPMorgan Facility $ 60,500 $ 311,219 $ 742,645 $ — $ 1,114,364 DB Repurchase Facility 102,896 589,016 — — 691,912 Goldman Facility — 267,711 — — 267,711 CS Facility - USD 174,279 — — — 174,279 CS Facility - GBP 124,707 — — — 124,707 HSBC Facility - GBP 36,621 — — — 36,621 HSBC Facility - EUR — 149,724 — — 149,724 Total $ 499,003 $ 1,317,670 $ 742,645 $ — $ 2,559,318 ——————— (1) Assumes underlying assets are financed through the fully extended maturity date of the facility. The table below summarizes the outstanding balances at September 30, 2019 , as well as the maximum and average month-end balances for the nine months ended September 30, 2019 for our borrowings under secured debt arrangements ($ in thousands). As of September 30, 2019 For the nine months ended September 30, 2019 Balance Amortized Cost of Collateral Maximum Month-End Average Month-End JPMorgan Facility $ 1,114,364 $ 1,809,170 $ 1,150,317 $ 875,895 DB Repurchase Facility 691,912 1,205,456 691,912 598,285 Goldman Facility 267,711 445,898 312,507 220,631 CS Facility - USD 174,279 241,989 188,037 180,792 CS Facility - GBP 124,707 178,612 150,811 139,991 HSBC Facility - GBP 36,621 52,593 50,784 44,007 HSBC Facility - EUR 149,724 185,208 152,155 150,914 Total $ 2,559,318 $ 4,118,926 We were in compliance with the covenants under each of our secured debt arrangements at September 30, 2019 and December 31, 2018 . In May 2019, we entered into a $500.0 million senior secured term loan. The senior secured term loan bears interest at LIBOR plus 2.75% and was issued at a price of 99.5% . The senior secured term loan matures in May 2026 and contains restrictions relating to liens, asset sales, indebtedness, and investments in non-wholly owned entities. During the three months ended September 30, 2019 , we repaid $1.3 million of principal related to the senior secured term loan. Covenants The senior secured term loan includes the following financial covenants: (i) our ratio of total non-recourse debt to tangible net worth cannot be greater than 3 :1; and (ii) our ratio of total unencumbered assets to total pari-passu indebtedness must be at least 1.25 :1. We were in compliance with the covenants under the senior secured term loan at September 30, 2019 . Interest Rate Swap In connection with the senior secured term loan, we entered into an interest rate swap to fix LIBOR at 2.12% effectively fixing our all-in coupon on the senior secured term loan at 4.87% |
Senior Secured Term Loan, Net
Senior Secured Term Loan, Net | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Senior Secured Term Loan, Net | Secured Debt Arrangements, Net At September 30, 2019 and December 31, 2018 , our borrowings had the following secured debt arrangements, maturities and weighted-average interest rates ($ in thousands): September 30, 2019 (2) December 31, 2018 (2) Maximum Amount of Borrowings Borrowings Outstanding Maturity (1) Maximum Amount of Borrowings Borrowings Outstanding Maturity (1) JPMorgan Facility (USD) $ 1,253,271 $ 1,067,635 June 2024 $ 1,333,503 $ 680,141 June 2021 JPMorgan Facility (GBP) 46,729 46,729 June 2024 48,497 48,497 June 2021 DB Repurchase Facility (USD) 1,116,993 558,905 March 2021 904,181 419,823 March 2021 DB Repurchase Facility (GBP) 133,007 133,007 March 2021 150,819 150,819 March 2021 Goldman Facility 500,000 267,711 November 2021 300,000 210,072 November 2020 CS Facility - USD 174,279 174,279 March 2020 187,117 187,117 June 2019 CS Facility - GBP 124,707 124,707 March 2020 151,773 151,773 June 2019 HSBC Facility - GBP 36,621 36,621 December 2019 48,835 48,835 December 2019 HSBC Facility - EUR 149,724 149,724 January 2021 — — N/A Sub-total 3,535,331 2,559,318 3,124,725 1,897,077 less: deferred financing costs N/A (18,031 ) N/A (17,555 ) Total / Weighted-Average $ 3,535,331 $ 2,541,287 $ 3,124,725 $ 1,879,522 ——————— (1) Maturity date assumes extensions at our option are exercised. (2) Weighted-average rates as of September 30, 2019 and December 31, 2018 were USD L + 2.09% / GBP L + 2.31% / EUR L + 1.35% and USD L + 2.17% / GBP L + 2.28% , respectively. JPMorgan Facility In May 2017, through two indirect wholly-owned subsidiaries, we entered into a Fifth Amended and Restated Master Repurchase Agreement with JPMorgan Chase Bank, National Association (as amended, the "JPMorgan Facility"). During the third quarter of 2019, we amended the JPMorgan Facility to allow for $1.3 billion of maximum borrowings and maturity in June 2022, plus two one-year extensions available at our option, subject to certain conditions. The JPMorgan Facility enables us to elect to receive advances in U.S. dollars ("USD"), British pounds ("GBP"), or Euros ("EUR"). Margin calls may occur any time at specified aggregate margin deficit thresholds. We have agreed to provide a limited guarantee of the obligations of our indirect wholly-owned subsidiaries under the JPMorgan Facility. As of September 30, 2019 , we had $1.1 billion (including £38.0 million assuming conversion into USD) of borrowings outstanding under the JPMorgan Facility secured by certain of our commercial mortgage loans. DB Repurchase Facility In April 2018, through an indirect wholly-owned subsidiary, we entered into a Second Amended and Restated Master Repurchase Agreement with Deutsche Bank AG, Cayman Islands Branch and Deutsche Bank AG, London Branch (as amended, the "DB Repurchase Facility"), which was upsized in September 2019, and provides for advances of up to $1.25 billion 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 us to elect to receive advances in USD, GBP, or EUR. The repurchase facility matures in March 2020 , plus a one-year extension available at our option, subject to certain conditions. Margin calls may occur any time at specified aggregate margin deficit thresholds. We have agreed to provide a limited guarantee of the obligations of our indirect wholly-owned subsidiaries under this facility. As of September 30, 2019 , we had $691.9 million (including £108.2 million assuming conversion into USD) of borrowings outstanding under the DB Repurchase Facility secured by certain of our commercial mortgage loans. Goldman Facility In November 2017, through an indirect wholly-owned subsidiary, we entered into a master repurchase and securities contract agreement with Goldman Sachs Bank USA (the "Goldman Facility"), which was upsized in March 2019 from $300.0 million to $500.0 million and matures in November 2019 , plus two one-year extensions available at our option, subject to certain conditions. Margin calls may occur any time at specified margin deficit thresholds. We have agreed to provide a limited guarantee of the obligations of our indirect wholly-owned subsidiaries under this facility. As of September 30, 2019 , we had $267.7 million of borrowings outstanding under the Goldman Facility. CS Facility - USD In July 2018, through an indirect wholly-owned subsidiary, we entered into a Master Repurchase Agreement with Credit Suisse AG, acting through its Cayman Islands Branch and Alpine Securitization Ltd (the "CS Facility - USD"), which provides for advances for the sale and repurchase of eligible commercial mortgage loans secured by real estate. The CS Facility - USD matures six months after either party notifies the other party of intention to terminate. Margin calls may occur any time at specified aggregate margin deficit thresholds. We have agreed to provide a guarantee of the obligations of our indirect wholly-owned subsidiary under this facility. As of September 30, 2019 , we had $174.3 million of borrowings outstanding under the CS Facility - USD secured by certain of our commercial mortgage loans. CS Facility - GBP In June 2018, through an indirect wholly-owned subsidiary, we entered into a Master Repurchase Agreement with Credit Suisse AG, acting through its Cayman Islands Branch and Alpine Securitization Ltd (the "CS Facility - GBP"), which provides for advances for the sale and repurchase of eligible commercial mortgage loans secured by real estate. The CS Facility - GBP matures six months after either party notifies the other party of intention to terminate. Margin calls may occur any time at specified aggregate margin deficit thresholds. We have agreed to provide a guarantee of the obligations of our indirect wholly-owned subsidiary under this facility. As of September 30, 2019 , we had $124.7 million ( £101.5 million assuming conversion into USD) of borrowings outstanding under the CS Facility - GBP secured by one of our commercial mortgage loans. HSBC Facility - GBP In September 2018, through an indirect wholly-owned subsidiary, we entered into a secured debt arrangement with HSBC Bank plc (the "HSBC Facility - GBP"), which provides for a single asset financing. The facility matures in December 2019 . Margin calls may occur any time at specified aggregate margin deficit thresholds. We have agreed to provide a guarantee of the obligations of our indirect wholly-owned subsidiary under this facility. As of September 30, 2019 , we had $36.6 million ( £29.8 million assuming conversion into USD) of borrowings outstanding under the HSBC Facility - GBP secured by one of our commercial mortgage loans. HSBC Facility - EUR In July 2019, through an indirect wholly-owned subsidiary, we entered into a secured debt arrangement with HSBC Bank plc (the "HSBC Facility - EUR"), which provides for a single asset financing. The facility matures in January 2021 . Margin calls may occur any time at specified aggregate margin deficit thresholds. We have agreed to provide a guarantee of the obligations of our indirect wholly-owned subsidiary under this facility. As of September 30, 2019 , we had $149.7 million ( €137.4 million assuming conversion into USD) of borrowings outstanding under the HSBC Facility - EUR secured by one of our commercial mortgage loans. At September 30, 2019 , our borrowings had the following remaining maturities ($ in thousands): Less than (1) 1 to 3 (1) 3 to 5 (1) More than Total JPMorgan Facility $ 60,500 $ 311,219 $ 742,645 $ — $ 1,114,364 DB Repurchase Facility 102,896 589,016 — — 691,912 Goldman Facility — 267,711 — — 267,711 CS Facility - USD 174,279 — — — 174,279 CS Facility - GBP 124,707 — — — 124,707 HSBC Facility - GBP 36,621 — — — 36,621 HSBC Facility - EUR — 149,724 — — 149,724 Total $ 499,003 $ 1,317,670 $ 742,645 $ — $ 2,559,318 ——————— (1) Assumes underlying assets are financed through the fully extended maturity date of the facility. The table below summarizes the outstanding balances at September 30, 2019 , as well as the maximum and average month-end balances for the nine months ended September 30, 2019 for our borrowings under secured debt arrangements ($ in thousands). As of September 30, 2019 For the nine months ended September 30, 2019 Balance Amortized Cost of Collateral Maximum Month-End Average Month-End JPMorgan Facility $ 1,114,364 $ 1,809,170 $ 1,150,317 $ 875,895 DB Repurchase Facility 691,912 1,205,456 691,912 598,285 Goldman Facility 267,711 445,898 312,507 220,631 CS Facility - USD 174,279 241,989 188,037 180,792 CS Facility - GBP 124,707 178,612 150,811 139,991 HSBC Facility - GBP 36,621 52,593 50,784 44,007 HSBC Facility - EUR 149,724 185,208 152,155 150,914 Total $ 2,559,318 $ 4,118,926 We were in compliance with the covenants under each of our secured debt arrangements at September 30, 2019 and December 31, 2018 . In May 2019, we entered into a $500.0 million senior secured term loan. The senior secured term loan bears interest at LIBOR plus 2.75% and was issued at a price of 99.5% . The senior secured term loan matures in May 2026 and contains restrictions relating to liens, asset sales, indebtedness, and investments in non-wholly owned entities. During the three months ended September 30, 2019 , we repaid $1.3 million of principal related to the senior secured term loan. Covenants The senior secured term loan includes the following financial covenants: (i) our ratio of total non-recourse debt to tangible net worth cannot be greater than 3 :1; and (ii) our ratio of total unencumbered assets to total pari-passu indebtedness must be at least 1.25 :1. We were in compliance with the covenants under the senior secured term loan at September 30, 2019 . Interest Rate Swap In connection with the senior secured term loan, we entered into an interest rate swap to fix LIBOR at 2.12% effectively fixing our all-in coupon on the senior secured term loan at 4.87% |
Convertible Senior Notes, Net
Convertible Senior Notes, Net | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Convertible Senior Notes, Net | Convertible Senior Notes, Net In two separate offerings during 2014, we issued an aggregate principal amount of $254.8 million of 5.50% Convertible Senior Notes due 2019 (the "2019 Notes"), for which we received $248.6 million , after deducting the underwriting discount and offering expenses. The 2019 Notes were exchanged or converted for shares of our common stock and cash as follows: (i) On August 2, 2018, we entered into privately negotiated exchange agreements with a limited number of holders of the 2019 Notes pursuant to which we exchanged $206.2 million of the 2019 Notes for an aggregate of (a) 10,020,328 newly issued shares of our common stock, and (b) $39.3 million in cash. We recorded $166.0 million of additional paid-in-capital in the condensed consolidated statement of changes in stockholders' equity in connection with these transactions, (ii) Certain holders elected to convert $47.9 million of the 2019 Notes, which were settled for an aggregate of (a) 2,775,509 newly issued shares of our common stock, and (b) $0.2 million in cash. We recorded $13.9 million of additional paid-in-capital in the condensed consolidated statement of changes in stockholders' equity in connection with these transactions. These conversions occurred from August 2018 through maturity. The remaining $0.7 million in principal amount of the 2019 Notes were repaid at maturity on March 15, 2019. During the year ended December 31, 2018, we recorded a loss on early extinguishment of debt of $2.6 million , in connection with the exchanges and conversions of the 2019 Notes. This includes fees and accelerated amortization of capitalized costs. There was no such loss related to the 2019 Notes during the three and nine months ended September 30, 2019 . In two separate offerings during 2017, we issued an aggregate principal amount of $345.0 million of 4.75% Convertible Senior Notes due 2022 (the "2022 Notes"), for which we received $337.5 million , after deducting the underwriting discount and offering expenses. At September 30, 2019 , the 2022 Notes had a carrying value of $337.1 million and an unamortized discount of $7.9 million . During the fourth quarter of 2018, we issued $230.0 million of 5.375% Convertible Senior Notes due 2023 ("2023 Notes," and together with the 2019 Notes and 2022 Notes, the "Notes"), for which we received $223.7 million after deducting the underwriting discount and offering expenses. At September 30, 2019 , the 2023 Notes had a carrying value of $223.5 million and an unamortized discount of $6.5 million . The following table summarizes the terms of the Notes ($ in thousands): Principal Amount Coupon Rate Effective Rate (1) Conversion Rate (2) Maturity Date Remaining Period of Amortization 2022 Notes $ 345,000 4.75 % 5.60 % 50.2260 8/23/2022 2.90 2023 Notes 230,000 5.38 % 6.16 % 48.7187 10/15/2023 4.04 Total $ 575,000 ——————— (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) We have 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 one thousand principal amount of the Notes converted, and includes adjustments relating to cash dividend payments made by us 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. In accordance with ASC 470 "Debt," 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 us at such time. We measured the fair value of the debt components of the Notes as of their issuance date based on effective interest rates. As a result, we attributed approximately $15.4 million of the proceeds to the equity component of the Notes ( $11.0 million to the 2022 Notes and $4.4 million to the 2023 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 September 30, 2019 . 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 $7.2 million and $21.9 million for the three and nine months ended September 30, 2019 , respectively, as compared to approximately $5.5 million and $20.7 million for the three and nine months ended September 30, 2018 , 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, we reported additional non-cash interest expense of approximately $1.5 million and $4.6 million for the three and nine months ended September 30, 2019 , respectively, as compared to $1.2 million and $4.9 million for the three and nine months ended September 30, 2018 |
Derivatives
Derivatives | 9 Months Ended |
Sep. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | Derivatives We use forward currency contracts to economically hedge interest and principal payments due under our loans denominated in currencies other than USD. We have entered into a series of forward contracts to sell an amount of foreign currency (British pound and Euro) for an agreed upon amount of USD at various dates through February 2023 . These forward contracts were executed to economically fix the USD amounts of foreign denominated cash flows expected to be received by us related to foreign denominated loan investments. In connection with the senior secured term loan, we entered into an interest rate swap to fix LIBOR at 2.12% or an all-in interest rate of 4.87% . We use interest rate swaps and caps to manage exposure to variable cash flows on portions of our borrowings under term loan debt. Interest rate swap and cap agreements allow us to receive a variable rate cash flow based on LIBOR and pay a fixed rate cash flow, mitigating the impact of this exposure. Gains or losses related to the interest rate swap are recorded net under interest expense in our condensed consolidated statement of operations. The following table summarizes our non-designated foreign exchange ("Fx") forwards and our interest rate swap as of September 30, 2019 : September 30, 2019 Number of Contracts Aggregate Notional Amount (in thousands) Notional Currency Maturity Weighted-Average Years to Maturity Fx Contracts - GBP 97 431,334 GBP October 2019 - April 2022 0.75 Fx Contracts - EUR 27 178,922 EUR October 2019 - February 2023 1.47 Interest Rate Swap 1 500,000 USD May 2026 6.62 The following table summarizes our non-designated Fx forwards as of December 31, 2018 : December 31, 2018 Number of Contracts Aggregate Notional Amount (in thousands) Notional Currency Maturity Weighted-Average Years to Maturity Fx Contracts - GBP 43 270,161 GBP January 2019 - November 2020 0.69 We have not designated any of our derivative instruments as hedges as defined in ASC 815 " Derivatives and Hedging" and, therefore, changes in the fair value of our derivative instruments are recorded directly in earnings. The following table summarizes the amounts recognized on the condensed consolidated statements of operations related to our derivatives for the three and nine months ended September 30, 2019 and 2018 ($ in thousands): Amount of gain (loss) recognized in income Amount of gain (loss) Three months ended September 30, Nine months ended September 30, Location of Gain (Loss) Recognized in Income 2019 2018 2019 2018 Forward currency contracts Gain on derivative instruments - unrealized $ 16,227 $ 5,046 $ 12,029 $ 20,987 Forward currency contracts Gain on derivative instruments - realized 7,926 1,246 16,590 7,811 Interest rate caps (1) Loss on derivative instruments - unrealized — (1 ) — (1 ) Gain on derivative instruments 24,153 6,291 28,619 28,797 ——————— (1) With a notional amount of $0.0 million and $36.2 million at September 30, 2019 , and 2018 , respectively. Amount of loss Amount of loss Three months ended September 30, Nine months ended September 30, Location of Loss Recognized in Income 2019 2018 2019 2018 Interest rate swap (1) Unrealized loss on interest rate swap (10,307 ) — (23,420 ) — ——————— (1) With a notional amount of $500.0 million and $0.0 million at September 30, 2019 , and 2018 , respectively. The following table summarizes the gross asset and liability amounts related to our derivatives at September 30, 2019 and December 31, 2018 ($ in thousands). September 30, 2019 December 31, 2018 Gross Gross Net Amounts Gross Amount of Recognized Assets Gross Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheet Forward currency contracts $ 35,811 $ (82 ) $ 35,729 $ 23,753 $ (53 ) $ 23,700 Interest rate swap (23,420 ) — (23,420 ) — — — |
Accounts Payable, Accrued Expen
Accounts Payable, Accrued Expenses and Other Liabilities | 9 Months Ended |
Sep. 30, 2019 | |
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 our accounts payable, accrued expense and other liabilities ($ in thousands): September 30, 2019 December 31, 2018 Accrued dividends payable $ 74,290 $ 69,033 Collateral deposited under derivative agreements 170 20,000 Accrued interest payable 13,908 14,208 Accounts payable and other liabilities 9,863 1,505 Total $ 98,231 $ 104,746 |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Management Agreement In connection with our initial public offering in September 2009, we 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 our day-to-day operations, subject to the direction and oversight of our 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 our stockholders’ equity (as defined in the Management Agreement), calculated and payable (in cash) quarterly in arrears. The current term of the Management Agreement was renewed during the period and expires on September 29, 2020 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 our independent directors, based upon (1) unsatisfactory performance by the Manager that is materially detrimental to ARI 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 our 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 our independent directors in February 2019, which included a discussion of the Manager’s performance and the level of the management fees thereunder, we determined not to seek termination of the Management Agreement. We incurred approximately $10.4 million and $30.3 million in base management fees under the Management Agreement for the three and nine months ended September 30, 2019 , respectively, as compared to approximately $9.5 million and $26.6 million for the three and nine months ended September 30, 2018 , respectively. In addition to the base management fee, we are also responsible for reimbursing the Manager for certain expenses paid by the Manager on our behalf or for certain services provided by the Manager to us. For the three and nine months ended September 30, 2019 , we paid expenses totaling $0.5 million and $2.0 million , respectively, related to reimbursements for certain expenses paid by the Manager on our behalf under the Management Agreement as compared to $0.6 million and $1.8 million for the same periods in the prior year. These expenses are included in the general and administrative expenses line item of the condensed consolidated statement of operations. Included in payable to related party on the condensed consolidated balance sheet at September 30, 2019 and December 31, 2018 are approximately $10.4 million and $9.8 million , respectively, for base management fees incurred but not yet paid under the Management Agreement. Loans receivable In June 2017, we increased our 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 our total outstanding loan commitment to $100.0 million . Furthermore, in September 2017 we 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 our total outstanding loan commitment to $125.0 million . In May 2018, we increased our outstanding principal balance through the acquisition of an additional $28.2 million interest in the same subordinate loan from a fund managed by an affiliate of the Manager. 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. In June 2018, we increased our outstanding loan commitment through the acquisition of £4.8 million ( $6.4 million assuming conversion into USD) pari-passu interest in an existing subordinate loan from a fund managed by an affiliate of the Manager. The subordinate loan is secured by a healthcare portfolio located in the United Kingdom. Senior Secured Term Loan In May 2019, Apollo Global Funding, LLC, an affiliate of the Manager, served as one of the five arrangers for the issuance of our senior secured term loan and received $0.6 million |
Share-Based Payments
Share-Based Payments | 9 Months Ended |
Sep. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Payments | Share-Based Payments On September 23, 2009, our board of directors approved the Apollo Commercial Real Estate Finance, Inc. 2009 Equity Incentive Plan ("2009 LTIP") and on April 16, 2019, our board of directors approved the Amended and Restated Apollo Commercial Real Estate Finance, Inc. 2019 Equity Incentive Plan ("2019 LTIP," and together with the 2009 LTIP, the "LTIPs"), which amended and restated the 2009 LTIP. Following the approval of the 2019 LTIP by our stockholders at our 2019 annual meeting of stockholders on June 12, 2019, no additional awards will be granted under the 2009 LTIP and all outstanding awards granted under the 2009 LTIP remain in effect in accordance with the terms in the 2009 LTIP. The 2019 LTIP provides for grants of restricted common stock, restricted stock units ("RSUs") and other equity-based awards up to an aggregate of 7,000,000 shares of our common stock. The LTIPs are administered by the compensation committee of our board of directors (the "Compensation Committee") and all grants under the LTIPs must be approved by the Compensation Committee. We recognized stock-based compensation expense of $3.9 million and $12.1 million for the three and nine months ended September 30, 2019 , respectively, related to restricted stock and RSU vesting, as compared to $4.0 million and $11.4 million for the three and nine months ended September 30, 2018 . We adopted ASU 2018-07 on January 1, 2019 and the stock-based compensation expense for grants before the adoption of ASU 2018-07 is based on the closing price of our common stock of $16.66 on December 31, 2018, which was the last business day before we adopted ASU 2018-07. Refer to "Note 2 - Summary of Significant Accounting Policies" for further discussion on our adoption of ASU 2018-07. The following table summarizes the grants, vesting and forfeitures of restricted common stock and RSUs during the nine months ended September 30, 2019 : Type Restricted Stock RSUs Grant Date Fair Value ($ in thousands) Outstanding at December 31, 2018 65,697 1,852,957 Granted 27,245 — 500 Vested (47,586 ) (263 ) N/A Forfeiture — (16,451 ) N/A Outstanding at September 30, 2019 45,356 1,836,243 Below is a summary of restricted stock and RSU vesting dates as of September 30, 2019 : Vesting Year Restricted Stock RSU Total Awards 2019 20,000 881,403 901,403 2020 25,356 621,515 646,871 2021 — 333,325 333,325 Total 45,356 1,836,243 1,881,599 At September 30, 2019 , we had unrecognized compensation expense of approximately $0.3 million and $19.5 million , respectively, related to the vesting of restricted stock awards and RSUs noted in the table above. RSU Deliveries During the three and nine months ended September 30, 2019 , we delivered 159 and 433,585 shares of common stock for 263 and 730,980 vested RSUs, respectively. We delivered 514 and 346,510 shares of common stock for 807 and 604,484 vested RSUs for the same periods in the prior year. We allow 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 $5.0 million and $4.7 million for the nine months ended September 30, 2019 |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Our 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 September 30, 2019 , 153,531,756 shares of common stock were issued and outstanding, and 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. On June 10, 2019, we redeemed all 6,900,000 shares of 8.00% Series C Cumulative Redeemable Perpetual Preferred Stock ("Series C Preferred Stock") outstanding. Holders of the Series C Preferred Stock received the redemption price of $25.00 plus accumulated but unpaid dividends to the redemption date of $0.2223 per share. Dividends. During 2019 , we declared the following dividends: Three months ended Dividend declared per share of: September 30, 2019 June 30, 2019 March 31, 2019 Common Stock $0.46 $0.46 $0.46 Series B Preferred Stock 0.50 0.50 0.50 Series C Preferred Stock N/A 0.22 0.50 Common Stock Offerings. During the first quarter of 2018, we completed a follow-on public offering of 15,525,000 shares of our common stock, including shares issued pursuant to the underwriters' option to purchase additional shares, at a price of $17.77 per share. The aggregate net proceeds from the offering were $275.9 million after deducting offering expenses. During the third quarter of 2018, we issued 10,744,577 shares of our common stock related to exchanges and conversions of the 2019 Notes. Refer to "Note 9 - Convertible Senior Notes, Net" for a further discussion on the exchanges and conversions of the 2019 Notes. During the first quarter of 2019, we issued 1,967,361 shares of our common stock, at a per share conversion price of $17.17 , related to conversions of the 2019 Notes, the remainder of which matured on March 15, 2019. We recorded a $33.8 million increase in additional paid in capital in the condensed consolidated statement of changes in stockholders' equity. Refer to " Note 9 - Convertible Senior Notes, Net" for a further discussion on the conversions of the 2019 Notes. During the second quarter of 2019, we completed a follow-on public offering of 17,250,000 shares of our common stock, including shares issued pursuant to the underwriters' option to purchase additional shares, at a price of $18.27 per share. The aggregate net proceeds from the offering were $314.8 million |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Legal Proceedings. From time to time, we may be involved in various claims and legal actions arising in the ordinary course of business. On June 28, 2018, AmBase Corporation, 111 West 57th Street Manager Funding LLC and 111 West 57th Investment LLC commenced an action captioned AmBase Corporation et al v. ACREFI Mortgage Lending, LLC et al (No. 653251/2018) in New York Supreme Court. The complaint names as defendants (i) ACREFI Mortgage Lending, LLC, a subsidiary of the Company, (ii) the Company, and (iii) certain funds managed by Apollo, who are co-lenders on a mezzanine loan against the development of a residential condominium building in Manhattan, New York. The plaintiffs allege that the defendants tortiously interfered with the contractual equity put right in the plaintiffs’ joint venture agreement with the developers of the project, and that the defendants aided and abetted breaches of fiduciary duty by the developers of the project. The plaintiffs allege the loss of a $70.0 million investment as part of total damages of $700.0 million , which includes punitive damages. The defendants' motion to dismiss was granted on October 23, 2019 and the complaint is now dismissed, subject to appeal. We believe the claims are without merit and plan to vigorously defend the case on appeal as necessary. We do not believe this will have a material adverse effect on our condensed consolidated financial statements. Loan Commitments. As described in " Note 4 - Commercial Mortgage, Subordinate Loans and Other Lending Assets, Net" at September 30, 2019 , we had $1.1 billion of unfunded commitments related to our commercial mortgage and subordinate loan portfolios. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The following table presents the carrying value and estimated fair value of our financial instruments not carried at fair value on the condensed consolidated balance sheet at September 30, 2019 and December 31, 2018 ($ in thousands): September 30, 2019 December 31, 2018 Carrying Estimated Carrying Estimated Cash and cash equivalents $ 160,934 $ 160,934 $ 109,806 $ 109,806 Commercial mortgage loans, net 4,779,501 4,828,398 3,878,981 3,894,947 Subordinate loans and other lending assets, net (1) 1,335,073 1,344,035 1,048,612 1,047,854 Secured debt arrangements, net (2,541,287 ) (2,541,287 ) (1,897,077 ) (1,897,077 ) Senior secured term loan, net (488,947 ) (499,375 ) — — 2019 Notes — — (34,278 ) (35,276 ) 2022 Notes (337,126 ) (352,331 ) (335,291 ) (326,025 ) 2023 Notes (223,463 ) (234,313 ) (222,431 ) (221,964 ) ——————— (1) As of September 30, 2019 includes subordinate risk retention interests in securitization vehicles with an estimated fair value that approximates their carrying value 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 we 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 per Share
Net Income per Share | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Net Income per Share | Net Income 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 the computation of basic and diluted net income per share of common stock for the three and nine months ended September 30, 2019 and 2018 ($ in thousands except per share data): For the three months ended September 30, For the nine months ended September 30, 2019 2018 2019 2018 Basic Earnings Net Income $ 29,089 $ 62,217 $ 158,271 $ 166,996 Less: Preferred dividends (3,385 ) (6,836 ) (15,139 ) (20,505 ) Net income available to common stockholders $ 25,704 $ 55,381 $ 143,132 $ 146,491 Less: Dividends on participating securities (847 ) (733 ) (2,547 ) (2,215 ) Basic Earnings $ 24,857 $ 54,648 $ 140,585 $ 144,276 Diluted Earnings Net Income $ 29,089 $ 62,217 $ 158,271 $ 166,996 Less: Preferred dividends (3,385 ) (6,836 ) (15,139 ) (20,505 ) Net income available to common stockholders $ 25,704 $ 55,381 $ 143,132 $ 146,491 Add: Interest expense on Notes — 6,746 — 25,607 Diluted Earnings $ 25,704 $ 62,127 $ 143,132 $ 172,098 Number of Shares: Basic weighted-average shares of common stock outstanding 153,531,678 129,188,343 144,638,237 120,876,240 Diluted weighted-average shares of common stock outstanding 153,531,678 153,918,435 144,638,237 150,424,889 Earnings Per Share Attributable to Common Stockholders Basic $ 0.16 $ 0.42 $ 0.97 $ 1.19 Diluted $ 0.16 $ 0.40 $ 0.97 $ 1.14 Prior to the three months ended September 30, 2018, we asserted our intent and ability to settle the principal amount of the Notes in cash and, as a result, the Notes did not have any impact on our diluted earnings per share. As of September 30, 2018, we no longer asserted our intent to fully settle the principal amount of the Notes in cash upon conversion. Accordingly, the dilutive effect to earnings per share for the current year periods is determined using the "if-converted" method whereby interest expense on the outstanding Notes is added back to the diluted earnings per share numerator and all of the potentially dilutive shares are included in the diluted earnings per share denominator. For the three and nine months ended September 30, 2019, 28,533,271 and 29,041,856 weighted-average potentially issuable shares with respect to the Notes, respectively, were excluded from the calculation of diluted net income per share because the effect was anti-dilutive. For the nine months ended September 30, 2019 and 2018, 29,041,856 and 29,548,649 weighted-average potentially issuable shares with respect to the Notes were included in the dilutive earnings per share denominator, respectively. Refer to " Note 9 - Convertible Senior Notes, Net" for further discussion. For the three and nine months ended September 30, 2019 , 1,839,631 and 1,845,086 weighted-average unvested RSUs, respectively, were excluded from the calculation of diluted net income per share because the effect was anti-dilutive as compared to 1,593,070 and 1,617,398 |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Investment activity. Subsequent to the quarter ended September 30, 2019 , we committed capital of $548.3 million ( $464.3 of which was funded at closing) to first mortgage loans. In addition, we funded approximately $26.7 million for previously closed loans. Loan Repayments. S ubsequent to the end of the quarter, we received approximately $60.2 million from loan repayments. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying condensed consolidated financial statements include our accounts and those of our 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. Our 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 our Annual Report on Form 10-K for the year ended December 31, 2018 , 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 our financial position, results of operations and cash flows have been included. Our results of operations for the three and nine months ended September 30, 2019 are not necessarily indicative of the results to be expected for the full year or any other future period. |
Interest Income Recognition | Interest Income Recognition Interest income on our lending assets is accrued based on the actual coupon rate adjusted for accretion of any purchase discounts, the amortization of any purchase premiums and the accretion of any deferred fees, in accordance with GAAP. Loans that have been assigned a risk rating of 4 or 5, discussed in " Note 4 - Commercial Mortgage, Subordinate Loans and Other Lending Assets, Net," may be placed on non-accrual. When a loan is placed on non-accrual, interest is only recorded as interest income when it's received. Under certain circumstances, we may apply cost recovery under which interest collected on a loan is a reduction to its amortized cost. The cost recovery method will no longer apply if collection of all principal and interest is reasonably assured. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In June 2018, the Financial Accounting Standards Board ("FASB") issued ASU 2018-07 "Compensation - Stock Compensation (Topic 718): Improvements to Nonemployees Share-Based Payment Accounting" ("ASU 2018-07"). The intention of ASU 2018-07 is to expand the scope of Topic 718 to include share-based payment transactions in exchange for goods and services from nonemployees. These share-based payments will now be measured at grant-date fair value of the equity instrument issued. Upon adoption, only liability-classified awards that have not been settled and equity-classified awards for which a measurement date has not been established should be remeasured through a cumulative-effect adjustment to retained earnings as of the beginning of the fiscal year of adoption. ASU 2018-07 is effective for fiscal years beginning after December 15, 2018 and is applied retrospectively. We adopted ASU 2018-07 in the first quarter of 2019 and it did not have any impact on our condensed consolidated financial statements. |
Fair Value Disclosure (Tables)
Fair Value Disclosure (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Summary of Levels in Fair Value Hierarchy of Financial Instruments | The following table summarizes the levels in the fair value hierarchy into which our financial instruments were categorized as of September 30, 2019 and December 31, 2018 ($ in thousands): Fair Value as of September 30, 2019 Fair Value as of December 31, 2018 Level I Level II Level III Total Level I Level II Level III Total Foreign currency forward assets, net $ — $ 35,729 $ — $ 35,729 $ — $ 23,700 $ — $ 23,700 Interest rate swap liability — (23,420 ) — (23,420 ) — — — — |
Commercial Mortgage, Subordin_2
Commercial Mortgage, Subordinate Loans and Other Lending Assets, Net (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Receivables [Abstract] | |
Schedule of Loan Portfolio | Our loan portfolio was comprised of the following at September 30, 2019 and December 31, 2018 ($ in thousands): Loan Type September 30, 2019 December 31, 2018 Commercial mortgage loans, net $ 4,779,501 $ 3,878,981 Subordinate loans and other lending assets, net 1,335,073 1,048,612 Total investments, net $ 6,114,574 $ 4,927,593 |
Activity Related to Loan Investment Portfolio | Activity relating to our loan investment portfolio, for the nine months ended September 30, 2019 , was as follows ($ in thousands): Principal Balance Deferred Fees/Other Items (1) Provision for Loan Loss (2) Carrying Value December 31, 2018 $ 4,982,514 $ (17,940 ) $ (36,981 ) $ 4,927,593 New loan fundings 1,770,623 — — 1,770,623 Add-on loan fundings (3) 290,043 — — 290,043 Loan repayments (843,417 ) — — (843,417 ) Gain (loss) on foreign currency translation (38,505 ) 105 — (38,400 ) Realized loss on investment, net of provision for loan loss reversal (2) (12,513 ) — 15,000 2,487 Provision for loan losses — — (35,000 ) (35,000 ) Deferred fees — (24,524 ) — (24,524 ) PIK interest and amortization of fees 43,728 21,441 — 65,169 September 30, 2019 $ 6,192,473 $ (20,918 ) $ (56,981 ) $ 6,114,574 ——————— (1) Other items primarily consist of purchase discounts or premiums, exit fees and deferred origination expenses. (2) In addition to the $57.0 million provision for loan loss, we recorded an impairment of $3.0 million against an investment previously recorded under other assets on our condensed consolidated balance sheet. During the second quarter of 2019, the underlying collateral on a commercial mortgage loan and a contiguous subordinate loan secured by a multifamily property located in Williston, ND was sold resulting in a realized loss of $12.5 million . Consequently, the previously recorded $15.0 million loan loss provision was reversed. (3) Represents fundings for loans closed prior to 2019 . |
Schedule of Overall Statistics for the Loan Portfolio | The following table details overall statistics for our loan portfolio at the dates indicated ($ in thousands): September 30, 2019 December 31, 2018 Number of loans 74 69 Principal balance $ 6,192,473 $ 4,982,514 Carrying value $ 6,114,574 $ 4,927,593 Unfunded loan commitments (1) $ 1,073,423 $ 1,095,598 Weighted-average cash coupon (2) 7.5 % 8.4 % Weighted-average remaining term (3) 3.1 years 2.8 years ——————— (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. (3) Assumes all extension options are exercised. |
Schedule of Mortgage Loans on Real Estate | The table below details the property type of the properties securing the loans in our portfolio at the dates indicated ($ in thousands): September 30, 2019 December 31, 2018 Property Type Carrying % of Carrying % of Hotel $ 1,579,667 25.8 % $ 1,286,590 26.1 % Residential-for-sale: construction 629,069 10.3 % 528,510 10.7 % Residential-for-sale: inventory 349,259 5.7 % 577,053 11.7 % Office 1,406,678 23.0 % 832,620 16.9 % Urban Predevelopment 602,946 9.9 % 683,886 13.9 % Urban Retail 466,343 7.6 % — — % Multifamily 306,142 5.0 % 448,899 9.1 % Industrial 227,696 3.7 % 32,000 0.6 % Retail Center 126,068 2.1 % 156,067 3.2 % Healthcare 190,832 3.1 % 156,814 3.2 % Other 127,229 2.1 % 151,197 3.1 % Mixed Use 102,645 1.7 % 73,957 1.5 % Total $ 6,114,574 100.0 % $ 4,927,593 100.0 % Geography The table below details the geographic distribution of the properties securing the loans in our portfolio at the dates indicated ($ in thousands): September 30, 2019 December 31, 2018 Geographic Location Carrying % of Carrying % of Manhattan, NY $ 2,286,709 37.4 % $ 1,669,145 33.9 % Brooklyn, NY 443,966 7.3 % 346,056 7.0 % Northeast 19,195 0.3 % 23,479 0.5 % West 728,788 11.9 % 614,160 12.5 % Midwest 626,867 10.3 % 631,710 12.8 % Southeast 568,103 9.3 % 559,043 11.3 % Southwest 126,506 2.1 % 96,345 2.0 % Mid Atlantic 110,895 1.8 % 211,775 4.3 % United Kingdom 815,168 13.3 % 700,460 14.2 % Germany 185,208 3.0 % — — % Italy 129,524 2.1 % — — % Other International 73,645 1.2 % 75,420 1.5 % Total $ 6,114,574 100.0 % $ 4,927,593 100.0 % |
Carrying Value of Loan Portfolio Based on Internal Risk Ratings | The following table allocates the carrying value of our loan portfolio based on our internal risk ratings at the dates indicated ($ in thousands): September 30, 2019 December 31, 2018 Risk Rating Number of Loans Carrying Value % of Loan Portfolio Number of Loans Carrying Value % of Loan Portfolio 1 — $ — — % — $ — — % 2 9 470,409 8 % 3 138,040 3 % 3 63 5,502,402 90 % 63 4,573,930 93 % 4 — — — % — — — % 5 2 141,763 2 % 3 215,623 4 % 74 $ 6,114,574 100 % 69 $ 4,927,593 100 % Weighted-average risk rating 3.0 3.1 |
Other Assets (Tables)
Other Assets (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Components of Other Assets | The following table details the components of our other assets at the dates indicated ($ in thousands): September 30, 2019 December 31, 2018 Interest receivable $ 36,908 $ 33,399 Other 950 321 Total $ 37,858 $ 33,720 |
Secured Debt Arrangements, Net
Secured Debt Arrangements, Net (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Weighted Average Maturities and Interest Rates of Borrowings | At September 30, 2019 and December 31, 2018 , our borrowings had the following secured debt arrangements, maturities and weighted-average interest rates ($ in thousands): September 30, 2019 (2) December 31, 2018 (2) Maximum Amount of Borrowings Borrowings Outstanding Maturity (1) Maximum Amount of Borrowings Borrowings Outstanding Maturity (1) JPMorgan Facility (USD) $ 1,253,271 $ 1,067,635 June 2024 $ 1,333,503 $ 680,141 June 2021 JPMorgan Facility (GBP) 46,729 46,729 June 2024 48,497 48,497 June 2021 DB Repurchase Facility (USD) 1,116,993 558,905 March 2021 904,181 419,823 March 2021 DB Repurchase Facility (GBP) 133,007 133,007 March 2021 150,819 150,819 March 2021 Goldman Facility 500,000 267,711 November 2021 300,000 210,072 November 2020 CS Facility - USD 174,279 174,279 March 2020 187,117 187,117 June 2019 CS Facility - GBP 124,707 124,707 March 2020 151,773 151,773 June 2019 HSBC Facility - GBP 36,621 36,621 December 2019 48,835 48,835 December 2019 HSBC Facility - EUR 149,724 149,724 January 2021 — — N/A Sub-total 3,535,331 2,559,318 3,124,725 1,897,077 less: deferred financing costs N/A (18,031 ) N/A (17,555 ) Total / Weighted-Average $ 3,535,331 $ 2,541,287 $ 3,124,725 $ 1,879,522 ——————— (1) Maturity date assumes extensions at our option are exercised. (2) Weighted-average rates as of September 30, 2019 and December 31, 2018 were USD L + 2.09% / GBP L + 2.31% / EUR L + 1.35% and USD L + 2.17% / GBP L + 2.28% , respectively. |
Remaining Maturities of Borrowings | At September 30, 2019 , our borrowings had the following remaining maturities ($ in thousands): Less than (1) 1 to 3 (1) 3 to 5 (1) More than Total JPMorgan Facility $ 60,500 $ 311,219 $ 742,645 $ — $ 1,114,364 DB Repurchase Facility 102,896 589,016 — — 691,912 Goldman Facility — 267,711 — — 267,711 CS Facility - USD 174,279 — — — 174,279 CS Facility - GBP 124,707 — — — 124,707 HSBC Facility - GBP 36,621 — — — 36,621 HSBC Facility - EUR — 149,724 — — 149,724 Total $ 499,003 $ 1,317,670 $ 742,645 $ — $ 2,559,318 ——————— (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 September 30, 2019 , as well as the maximum and average month-end balances for the nine months ended September 30, 2019 for our borrowings under secured debt arrangements ($ in thousands). As of September 30, 2019 For the nine months ended September 30, 2019 Balance Amortized Cost of Collateral Maximum Month-End Average Month-End JPMorgan Facility $ 1,114,364 $ 1,809,170 $ 1,150,317 $ 875,895 DB Repurchase Facility 691,912 1,205,456 691,912 598,285 Goldman Facility 267,711 445,898 312,507 220,631 CS Facility - USD 174,279 241,989 188,037 180,792 CS Facility - GBP 124,707 178,612 150,811 139,991 HSBC Facility - GBP 36,621 52,593 50,784 44,007 HSBC Facility - EUR 149,724 185,208 152,155 150,914 Total $ 2,559,318 $ 4,118,926 |
Convertible Senior Notes, Net (
Convertible Senior Notes, Net (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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 2022 Notes $ 345,000 4.75 % 5.60 % 50.2260 8/23/2022 2.90 2023 Notes 230,000 5.38 % 6.16 % 48.7187 10/15/2023 4.04 Total $ 575,000 ——————— (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) We have 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 one thousand principal amount of the Notes converted, and includes adjustments relating to cash dividend payments made by us 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 (Tables)
Derivatives (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of Non-Designated Foreign Exchange Forwards | The following table summarizes our non-designated foreign exchange ("Fx") forwards and our interest rate swap as of September 30, 2019 : September 30, 2019 Number of Contracts Aggregate Notional Amount (in thousands) Notional Currency Maturity Weighted-Average Years to Maturity Fx Contracts - GBP 97 431,334 GBP October 2019 - April 2022 0.75 Fx Contracts - EUR 27 178,922 EUR October 2019 - February 2023 1.47 Interest Rate Swap 1 500,000 USD May 2026 6.62 The following table summarizes our non-designated Fx forwards as of December 31, 2018 : December 31, 2018 Number of Contracts Aggregate Notional Amount (in thousands) Notional Currency Maturity Weighted-Average Years to Maturity Fx Contracts - GBP 43 270,161 GBP January 2019 - November 2020 0.69 |
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 our derivatives for the three and nine months ended September 30, 2019 and 2018 ($ in thousands): Amount of gain (loss) recognized in income Amount of gain (loss) Three months ended September 30, Nine months ended September 30, Location of Gain (Loss) Recognized in Income 2019 2018 2019 2018 Forward currency contracts Gain on derivative instruments - unrealized $ 16,227 $ 5,046 $ 12,029 $ 20,987 Forward currency contracts Gain on derivative instruments - realized 7,926 1,246 16,590 7,811 Interest rate caps (1) Loss on derivative instruments - unrealized — (1 ) — (1 ) Gain on derivative instruments 24,153 6,291 28,619 28,797 ——————— (1) With a notional amount of $0.0 million and $36.2 million at September 30, 2019 , and 2018 , respectively. Amount of loss Amount of loss Three months ended September 30, Nine months ended September 30, Location of Loss Recognized in Income 2019 2018 2019 2018 Interest rate swap (1) Unrealized loss on interest rate swap (10,307 ) — (23,420 ) — ——————— (1) With a notional amount of $500.0 million and $0.0 million at September 30, 2019 , and 2018 , respectively. |
Summarizes Gross Asset and Liability Amounts Related to Derivatives | The following table summarizes the gross asset and liability amounts related to our derivatives at September 30, 2019 and December 31, 2018 ($ in thousands). September 30, 2019 December 31, 2018 Gross Gross Net Amounts Gross Amount of Recognized Assets Gross Net Amounts of Assets Presented in the Condensed Consolidated Balance Sheet Forward currency contracts $ 35,811 $ (82 ) $ 35,729 $ 23,753 $ (53 ) $ 23,700 Interest rate swap (23,420 ) — (23,420 ) — — — |
Accounts Payable, Accrued Exp_2
Accounts Payable, Accrued Expenses and Other Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable, Accrued Expense and Other Liabilities | The following table details the components of our accounts payable, accrued expense and other liabilities ($ in thousands): September 30, 2019 December 31, 2018 Accrued dividends payable $ 74,290 $ 69,033 Collateral deposited under derivative agreements 170 20,000 Accrued interest payable 13,908 14,208 Accounts payable and other liabilities 9,863 1,505 Total $ 98,231 $ 104,746 |
Share-Based Payments (Tables)
Share-Based Payments (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Share-based Payment Arrangement [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 nine months ended September 30, 2019 : Type Restricted Stock RSUs Grant Date Fair Value ($ in thousands) Outstanding at December 31, 2018 65,697 1,852,957 Granted 27,245 — 500 Vested (47,586 ) (263 ) N/A Forfeiture — (16,451 ) N/A Outstanding at September 30, 2019 45,356 1,836,243 Below is a summary of restricted stock and RSU vesting dates as of September 30, 2019 : Vesting Year Restricted Stock RSU Total Awards 2019 20,000 881,403 901,403 2020 25,356 621,515 646,871 2021 — 333,325 333,325 Total 45,356 1,836,243 1,881,599 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
Schedule of Dividends Declared | During 2019 , we declared the following dividends: Three months ended Dividend declared per share of: September 30, 2019 June 30, 2019 March 31, 2019 Common Stock $0.46 $0.46 $0.46 Series B Preferred Stock 0.50 0.50 0.50 Series C Preferred Stock N/A 0.22 0.50 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Carrying Value and Estimated Fair Value of Company's Financial Instruments | The following table presents the carrying value and estimated fair value of our financial instruments not carried at fair value on the condensed consolidated balance sheet at September 30, 2019 and December 31, 2018 ($ in thousands): September 30, 2019 December 31, 2018 Carrying Estimated Carrying Estimated Cash and cash equivalents $ 160,934 $ 160,934 $ 109,806 $ 109,806 Commercial mortgage loans, net 4,779,501 4,828,398 3,878,981 3,894,947 Subordinate loans and other lending assets, net (1) 1,335,073 1,344,035 1,048,612 1,047,854 Secured debt arrangements, net (2,541,287 ) (2,541,287 ) (1,897,077 ) (1,897,077 ) Senior secured term loan, net (488,947 ) (499,375 ) — — 2019 Notes — — (34,278 ) (35,276 ) 2022 Notes (337,126 ) (352,331 ) (335,291 ) (326,025 ) 2023 Notes (223,463 ) (234,313 ) (222,431 ) (221,964 ) ——————— (1) As of September 30, 2019 includes subordinate risk retention interests in securitization vehicles with an estimated fair value that approximates their carrying value |
Net Income per Share (Tables)
Net Income per Share (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Net Income per Share of Common Stock Using Two-Class Method | The table below presents the computation of basic and diluted net income per share of common stock for the three and nine months ended September 30, 2019 and 2018 ($ in thousands except per share data): For the three months ended September 30, For the nine months ended September 30, 2019 2018 2019 2018 Basic Earnings Net Income $ 29,089 $ 62,217 $ 158,271 $ 166,996 Less: Preferred dividends (3,385 ) (6,836 ) (15,139 ) (20,505 ) Net income available to common stockholders $ 25,704 $ 55,381 $ 143,132 $ 146,491 Less: Dividends on participating securities (847 ) (733 ) (2,547 ) (2,215 ) Basic Earnings $ 24,857 $ 54,648 $ 140,585 $ 144,276 Diluted Earnings Net Income $ 29,089 $ 62,217 $ 158,271 $ 166,996 Less: Preferred dividends (3,385 ) (6,836 ) (15,139 ) (20,505 ) Net income available to common stockholders $ 25,704 $ 55,381 $ 143,132 $ 146,491 Add: Interest expense on Notes — 6,746 — 25,607 Diluted Earnings $ 25,704 $ 62,127 $ 143,132 $ 172,098 Number of Shares: Basic weighted-average shares of common stock outstanding 153,531,678 129,188,343 144,638,237 120,876,240 Diluted weighted-average shares of common stock outstanding 153,531,678 153,918,435 144,638,237 150,424,889 Earnings Per Share Attributable to Common Stockholders Basic $ 0.16 $ 0.42 $ 0.97 $ 1.19 Diluted $ 0.16 $ 0.40 $ 0.97 $ 1.14 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2019segment | |
Accounting Policies [Abstract] | |
Number of business segments | 1 |
Fair Value Disclosure - Summari
Fair Value Disclosure - Summarizes Levels in Fair Value Hierarchy of Financial Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency forward assets, net | $ 35,729 | $ 23,700 |
Interest rate swap liability | (23,420) | 0 |
Estimate of Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency forward assets, net | 35,729 | 23,700 |
Interest rate swap liability | (23,420) | 0 |
Level 1 | Estimate of Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency forward assets, net | 0 | 0 |
Interest rate swap liability | 0 | 0 |
Level 2 | Estimate of Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency forward assets, net | 35,729 | 23,700 |
Interest rate swap liability | (23,420) | 0 |
Level 3 | Estimate of Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency forward assets, net | 0 | 0 |
Interest rate swap liability | $ 0 | $ 0 |
Commercial Mortgage, Subordin_3
Commercial Mortgage, Subordinate Loans and Other Lending Assets, Net - Loan Portfolio (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying value | $ 6,114,574 | $ 4,927,593 |
Commercial Mortgage Portfolio Segment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying value | 4,779,501 | 3,878,981 |
Subordinate Mortgage Portfolio Segment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying value | $ 1,335,073 | $ 1,048,612 |
Commercial Mortgage, Subordin_4
Commercial Mortgage, Subordinate Loans and Other Lending Assets, Net - Activity Relating to Loan Investment Portfolio (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Jun. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Principal Balance | |||||
Loan repayments | $ (570,305) | $ (356,865) | |||
Provision for Loan Loss | |||||
Provision for loan losses | $ (35,000) | $ 0 | (20,000) | (5,000) | |
Carrying Value | |||||
Provision for loan losses | (35,000) | $ 0 | (20,000) | $ (5,000) | |
Commercial Mortgage and Subordinated Portfolio Segment | |||||
Principal Balance | |||||
Principal balance, beginning | 4,982,514 | ||||
New loan fundings | 1,770,623 | ||||
Add-on loan fundings | 290,043 | ||||
Loan repayments | (843,417) | ||||
Gain (loss) on foreign currency translation | (38,505) | ||||
Realized loss on investment, net of provision for loan loss reversal | $ (12,500) | (12,513) | |||
Realized loss on investment, net of provision for loan loss reversal | (12,500) | (12,513) | |||
PIK interest and amortization of fees | 43,728 | ||||
Principal balance, ending | 6,192,473 | 6,192,473 | |||
Deferred Fees/Other Items | |||||
Deferred fees/other items, beginning | (17,940) | ||||
Gain (loss) on foreign currency translation | 105 | ||||
Deferred fees | (24,524) | ||||
PIK interest and amortization of fees | 21,441 | ||||
Deferred fees/other items, ending | (20,918) | (20,918) | |||
Provision for Loan Loss | |||||
Provision for Loan Loss, beginning | (36,981) | ||||
Realized loss on investment, net of provision for loan loss reversal | $ 15,000 | 15,000 | |||
Provision for loan losses | (35,000) | ||||
Provision for Loan Loss, ending | (56,981) | (56,981) | |||
Carrying Value | |||||
Carrying value, beginning balance | 4,927,593 | ||||
Gain (loss) on foreign currency translation | (38,400) | ||||
Realized loss on investment / Provision for loan loss, net of reversals | 2,487 | ||||
Provision for loan losses | (35,000) | ||||
Deferred fees | (24,524) | ||||
PIK interest and amortization of fees | 65,169 | ||||
Carrying value, ending balance | 6,114,574 | 6,114,574 | |||
Provision for loan loss | $ 56,981 | 36,981 | |||
Other Assets | Commercial Mortgage and Subordinated Portfolio Segment | |||||
Carrying Value | |||||
Impairment | $ 3,000 |
Commercial Mortgage, Subordin_5
Commercial Mortgage, Subordinate Loans and Other Lending Assets, Net - Additional Information (Details) $ in Thousands | Sep. 30, 2019USD ($)$ / ft² | Sep. 30, 2019USD ($)$ / ft² | Jun. 30, 2019USD ($) | Dec. 31, 2018USD ($)$ / ft² | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Sep. 30, 2019USD ($)$ / ft² | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($)$ / ft² | Dec. 31, 2018USD ($)$ / ft² | Dec. 31, 2016USD ($) | Mar. 31, 2018 |
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||||||||
Percentage of loan portfolio | 100.00% | 100.00% | |||||||||||
Provision for loan losses and impairments, net of reversal | $ 35,000 | $ 0 | $ 20,000 | $ 5,000 | |||||||||
Carrying value | $ 6,114,574 | 6,114,574 | $ 4,927,593 | 6,114,574 | $ 6,114,574 | $ 4,927,593 | |||||||
Payment in kind interest | 13,700 | 10,200 | 42,800 | 29,900 | |||||||||
Proceeds from pre-payment penalties or accelerated fees | 300 | $ 200 | 4,000 | $ 1,800 | |||||||||
Commercial Mortgage and Subordinated Portfolio Segment | |||||||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||||||||
Provision for loan losses and impairments, net of reversal | 35,000 | ||||||||||||
Amortized cost of the loan | 6,114,574 | 6,114,574 | 4,927,593 | 6,114,574 | 6,114,574 | 4,927,593 | |||||||
Loan loss provision and impairment | 57,000 | 37,000 | |||||||||||
Realized loss on investment, net of provision for loan loss reversal | $ 12,500 | 12,513 | |||||||||||
Commercial Mortgage Portfolio Segment | |||||||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||||||||
Carrying value | 4,779,501 | 4,779,501 | 3,878,981 | 4,779,501 | 4,779,501 | 3,878,981 | |||||||
Subordinate Mortgage Portfolio Segment | |||||||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||||||||
Carrying value | 1,335,073 | 1,335,073 | 1,048,612 | 1,335,073 | 1,335,073 | 1,048,612 | |||||||
Maximum exposure to loss | $ 68,300 | 68,300 | 68,300 | 68,300 | |||||||||
Maximum exposure to loss, term | 7 years 25 days | ||||||||||||
Retail Center - Cincinnati, OH | Commercial Mortgage Portfolio Segment | |||||||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||||||||
Provision for loan losses and impairments, net of reversal | 32,000 | 15,000 | 47,000 | ||||||||||
Amortized cost of the loan | $ 126,100 | 126,100 | 156,100 | 126,100 | 126,100 | 156,100 | |||||||
Residential Condominium - Bethesda, MD | Commercial Mortgage and Subordinated Portfolio Segment | |||||||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||||||||
Provision for loan losses and impairments, net of reversal | 3,000 | $ 5,000 | $ 2,000 | ||||||||||
Amortized cost of the loan | 15,700 | 15,700 | 27,200 | 15,700 | 15,700 | 27,200 | |||||||
Loan loss provision and impairment | 13,000 | ||||||||||||
Impairment | $ 3,000 | ||||||||||||
Multifamily - Williston, ND | Commercial Mortgage and Subordinated Portfolio Segment | |||||||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||||||||
Amortized cost of the loan | 32,400 | 32,400 | |||||||||||
Multifamily - Williston, ND | Commercial Mortgage Portfolio Segment | |||||||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||||||||
Provision for loan losses and impairments, net of reversal | $ 10,000 | ||||||||||||
Multifamily - Williston, ND | Subordinate Mortgage Portfolio Segment | |||||||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||||||||
Provision for loan losses and impairments, net of reversal | $ 5,000 | ||||||||||||
Office Campus - Renton, WA | Subordinate Mortgage Portfolio Segment | |||||||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||||||||
Proceeds from sale of loan | 75,000 | ||||||||||||
Proceeds from sale of loan, amount funded | 17,700 | ||||||||||||
Carrying value | 265,000 | $ 265,000 | |||||||||||
Exposure to mortgage loan | 190,000 | 190,000 | 190,000 | 190,000 | |||||||||
Exposure to mortgage loan, amount funded | $ 121,800 | $ 121,800 | $ 121,800 | $ 121,800 | |||||||||
Floating Rate Loan | |||||||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||||||||
Percentage of loan portfolio | 94.00% | 91.00% | |||||||||||
Net operating income | Retail Center - Cincinnati, OH | Commercial Mortgage Portfolio Segment | |||||||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||||||||
Loan collateral | $ 10,500 | $ 10,500 | |||||||||||
Capitalization rate | Retail Center - Cincinnati, OH | Commercial Mortgage Portfolio Segment | |||||||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||||||||
Loan collateral, measurement input | 0.0775 | 0.0775 | 0.0675 | 0.0775 | 0.0775 | 0.0675 | |||||||
Dollars per square foot | Residential Condominium - Bethesda, MD | Commercial Mortgage Portfolio Segment | |||||||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||||||||
Loan collateral, measurement input | $ / ft² | 597,000 | 597,000 | 662 | 597,000 | 597,000 | 662 | |||||||
Discount rate | Commercial Mortgage Portfolio Segment | |||||||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||||||||
Loan collateral, measurement input | 0.10 | ||||||||||||
Discount rate | Residential Condominium - Bethesda, MD | Commercial Mortgage Portfolio Segment | |||||||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||||||||
Loan collateral, measurement input | 0.10 | 0.10 | 0.15 | 0.10 | 0.10 | 0.15 | |||||||
Terminal capitalization rate | Commercial Mortgage Portfolio Segment | |||||||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||||||||
Loan collateral, measurement input | 0.11 | ||||||||||||
Contractual Interest Rate Reduction | Retail Center - Cincinnati, OH | Commercial Mortgage Portfolio Segment | |||||||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||||||||
Unpaid principal balance of loan restructured | $ 171,200 | ||||||||||||
Contractual Interest Rate Reduction | London Interbank Offered Rate (LIBOR) | Retail Center - Cincinnati, OH | Commercial Mortgage Portfolio Segment | |||||||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||||||||
Basis spread on variable rate | 3.00% | 5.50% |
Commercial Mortgage, Subordin_6
Commercial Mortgage, Subordinate Loans and Other Lending Assets, Net - Statistics for Loan Portfolio (Details) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019USD ($)loan | Dec. 31, 2018USD ($)loan | |
Loans and Leases Receivable Disclosure [Line Items] | ||
Number of loans | loan | 74 | 69 |
Carrying value | $ 6,114,574 | $ 4,927,593 |
Unfunded loan commitments | $ 1,073,423 | $ 1,095,598 |
Weighted-average cash coupon | 7.50% | 8.40% |
Weighted-average remaining term | 3 years 1 month 6 days | 2 years 9 months 18 days |
Mortgage loans | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Principal balance | $ 6,192,473 | $ 4,982,514 |
Commercial Mortgage, Subordin_7
Commercial Mortgage, Subordinate Loans and Other Lending Assets, Net - Schedule of Mortgage Loans by Property Type and Geographic Distribution (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 2018 | |
Loans and Leases Receivable Disclosure [Line Items] | ||
Carrying value | $ 6,114,574 | $ 4,927,593 |
% of Portfolio | 100.00% | 100.00% |
Hotel | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Carrying value | $ 1,579,667 | $ 1,286,590 |
% of Portfolio | 25.80% | 26.10% |
Residential-for-sale: construction | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Carrying value | $ 629,069 | $ 528,510 |
% of Portfolio | 10.30% | 10.70% |
Residential-for-sale: inventory | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Carrying value | $ 349,259 | $ 577,053 |
% of Portfolio | 5.70% | 11.70% |
Office | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Carrying value | $ 1,406,678 | $ 832,620 |
% of Portfolio | 23.00% | 16.90% |
Urban Predevelopment | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Carrying value | $ 602,946 | $ 683,886 |
% of Portfolio | 9.90% | 13.90% |
Urban Retail | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Carrying value | $ 466,343 | $ 0 |
% of Portfolio | 7.60% | 0.00% |
Multifamily | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Carrying value | $ 306,142 | $ 448,899 |
% of Portfolio | 5.00% | 9.10% |
Industrial | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Carrying value | $ 227,696 | $ 32,000 |
% of Portfolio | 3.70% | 0.60% |
Retail Center | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Carrying value | $ 126,068 | $ 156,067 |
% of Portfolio | 2.10% | 3.20% |
Healthcare | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Carrying value | $ 190,832 | $ 156,814 |
% of Portfolio | 3.10% | 3.20% |
Other | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Carrying value | $ 127,229 | $ 151,197 |
% of Portfolio | 2.10% | 3.10% |
Mixed Use | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Carrying value | $ 102,645 | $ 73,957 |
% of Portfolio | 1.70% | 1.50% |
Manhattan, NY | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Carrying value | $ 2,286,709 | $ 1,669,145 |
% of Portfolio | 37.40% | 33.90% |
Brooklyn, NY | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Carrying value | $ 443,966 | $ 346,056 |
% of Portfolio | 7.30% | 7.00% |
Northeast | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Carrying value | $ 19,195 | $ 23,479 |
% of Portfolio | 0.30% | 0.50% |
West | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Carrying value | $ 728,788 | $ 614,160 |
% of Portfolio | 11.90% | 12.50% |
Midwest | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Carrying value | $ 626,867 | $ 631,710 |
% of Portfolio | 10.30% | 12.80% |
Southeast | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Carrying value | $ 568,103 | $ 559,043 |
% of Portfolio | 9.30% | 11.30% |
Southwest | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Carrying value | $ 126,506 | $ 96,345 |
% of Portfolio | 2.10% | 2.00% |
Mid Atlantic | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Carrying value | $ 110,895 | $ 211,775 |
% of Portfolio | 1.80% | 4.30% |
United Kingdom | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Carrying value | $ 815,168 | $ 700,460 |
% of Portfolio | 13.30% | 14.20% |
Germany | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Carrying value | $ 185,208 | $ 0 |
% of Portfolio | 3.00% | 0.00% |
Italy | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Carrying value | $ 129,524 | $ 0 |
% of Portfolio | 2.10% | 0.00% |
Other International | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Carrying value | $ 73,645 | $ 75,420 |
% of Portfolio | 1.20% | 1.50% |
Commercial Mortgage, Subordin_8
Commercial Mortgage, Subordinate Loans and Other Lending Assets, Net - Allocation of Carrying Value of Loan Portfolio Based on Internal Risk Ratings (Details) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019USD ($)loan | Dec. 31, 2018USD ($)loan | |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Number of Loans | loan | 74 | 69 |
Carrying value | $ | $ 6,114,574 | $ 4,927,593 |
% of Portfolio | 100.00% | 100.00% |
Weighted-average risk rating | 3 | 3.1 |
1 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Number of Loans | loan | 0 | 0 |
Carrying value | $ | $ 0 | $ 0 |
% of Portfolio | 0.00% | 0.00% |
2 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Number of Loans | loan | 9 | 3 |
Carrying value | $ | $ 470,409 | $ 138,040 |
% of Portfolio | 8.00% | 3.00% |
3 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Number of Loans | loan | 63 | 63 |
Carrying value | $ | $ 5,502,402 | $ 4,573,930 |
% of Portfolio | 90.00% | 93.00% |
4 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Number of Loans | loan | 0 | 0 |
Carrying value | $ | $ 0 | $ 0 |
% of Portfolio | 0.00% | 0.00% |
5 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Number of Loans | loan | 2 | 3 |
Carrying value | $ | $ 141,763 | $ 215,623 |
% of Portfolio | 2.00% | 4.00% |
Loan Proceeds Held by Servicer
Loan Proceeds Held by Servicer (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Receivables [Abstract] | ||
Loan proceeds held by servicer | $ 3,323 | $ 1,000 |
Other Assets (Details)
Other Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Interest receivable | $ 36,908 | $ 33,399 |
Other | 950 | 321 |
Total | $ 37,858 | $ 33,720 |
Secured Debt Arrangements, Ne_2
Secured Debt Arrangements, Net - Weighted Average Maturities and Interest Rates of Borrowings (Details) £ in Millions | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2019GBP (£) | Mar. 31, 2019USD ($) | Nov. 30, 2017USD ($) | |
Debt Instrument [Line Items] | |||||
Borrowings Outstanding | $ 2,541,287,000 | $ 1,879,522,000 | |||
less: deferred financing costs | (7,452,000) | 0 | |||
Line of Credit | |||||
Debt Instrument [Line Items] | |||||
Maximum Amount of Borrowings | 3,535,331,000 | 3,124,725,000 | |||
Borrowings Outstanding | 2,541,287,000 | 1,879,522,000 | |||
less: deferred financing costs | $ (18,031,000) | $ (17,555,000) | |||
Line of Credit | London Interbank Offered Rate (LIBOR) | Weighted Average | |||||
Debt Instrument [Line Items] | |||||
Weighted Average Rate | 2.09% | 2.17% | |||
Line of Credit | GBP London Interbank Offered Rate (LIBOR) | Weighted Average | |||||
Debt Instrument [Line Items] | |||||
Weighted Average Rate | 2.31% | 2.28% | |||
Line of Credit | EUR London Interbank Offered Rate (LIBOR) | Weighted Average | |||||
Debt Instrument [Line Items] | |||||
Weighted Average Rate | 1.35% | ||||
Line of Credit | JP Morgan Chase, DB Repurchase Facility, Goldman Sachs, Credit Suisse and HSBC Facilities [Member] | |||||
Debt Instrument [Line Items] | |||||
Maximum Amount of Borrowings | $ 3,535,331,000 | $ 3,124,725,000 | |||
Borrowings Outstanding | 2,559,318,000 | 1,897,077,000 | |||
Line of Credit | Deutsche Bank Repurchase Facility | |||||
Debt Instrument [Line Items] | |||||
Maximum Amount of Borrowings | 1,250,000,000 | ||||
Borrowings Outstanding | 691,900,000 | £ 108.2 | |||
Line of Credit | Goldman Facility | |||||
Debt Instrument [Line Items] | |||||
Maximum Amount of Borrowings | 500,000,000 | 300,000,000 | $ 500,000,000 | $ 300,000,000 | |
Borrowings Outstanding | 267,711,000 | 210,072,000 | |||
USD | Line of Credit | JP Morgan Facility | |||||
Debt Instrument [Line Items] | |||||
Maximum Amount of Borrowings | 1,253,271,000 | 1,333,503,000 | |||
Borrowings Outstanding | 1,067,635,000 | 680,141,000 | |||
USD | Line of Credit | Deutsche Bank Repurchase Facility | |||||
Debt Instrument [Line Items] | |||||
Maximum Amount of Borrowings | 1,116,993,000 | 904,181,000 | |||
Borrowings Outstanding | 558,905,000 | 419,823,000 | |||
USD | Line of Credit | Credit Suisse Facility | |||||
Debt Instrument [Line Items] | |||||
Maximum Amount of Borrowings | 174,279,000 | 187,117,000 | |||
Borrowings Outstanding | 174,279,000 | 187,117,000 | |||
GBP | Line of Credit | JP Morgan Facility | |||||
Debt Instrument [Line Items] | |||||
Maximum Amount of Borrowings | 46,729,000 | 48,497,000 | |||
Borrowings Outstanding | 46,729,000 | 48,497,000 | |||
GBP | Line of Credit | Deutsche Bank Repurchase Facility | |||||
Debt Instrument [Line Items] | |||||
Maximum Amount of Borrowings | 133,007,000 | 150,819,000 | |||
Borrowings Outstanding | 133,007,000 | 150,819,000 | |||
GBP | Line of Credit | Credit Suisse Facility | |||||
Debt Instrument [Line Items] | |||||
Maximum Amount of Borrowings | 124,707,000 | 151,773,000 | |||
Borrowings Outstanding | 124,707,000 | 151,773,000 | £ 101.5 | ||
GBP | Line of Credit | HSBC Facility | |||||
Debt Instrument [Line Items] | |||||
Maximum Amount of Borrowings | 36,621,000 | 48,835,000 | |||
Borrowings Outstanding | 36,621,000 | 48,835,000 | |||
EUR | Line of Credit | HSBC Facility | |||||
Debt Instrument [Line Items] | |||||
Maximum Amount of Borrowings | 149,724,000 | 0 | |||
Borrowings Outstanding | $ 149,724,000 | $ 0 |
Secured Debt Arrangements, Ne_3
Secured Debt Arrangements, Net - Additional Information (Details) £ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||||
Mar. 31, 2019USD ($)extension | Jul. 31, 2018 | Jun. 30, 2018 | May 31, 2017subsidiary | Sep. 30, 2019USD ($)extension | Sep. 30, 2019USD ($) | Sep. 30, 2019GBP (£) | Dec. 31, 2018USD ($) | Nov. 30, 2017USD ($) | |
Debt Instrument [Line Items] | |||||||||
Borrowings Outstanding | $ 2,541,287,000 | $ 2,541,287,000 | $ 1,879,522,000 | ||||||
Line of Credit | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum borrowing under facility | 3,535,331,000 | 3,535,331,000 | 3,124,725,000 | ||||||
Balance | 2,559,318,000 | 2,559,318,000 | |||||||
Borrowings Outstanding | 2,541,287,000 | 2,541,287,000 | 1,879,522,000 | ||||||
Line of Credit | JP Morgan Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Balance | 1,114,364,000 | 1,114,364,000 | |||||||
Line of Credit | DB Repurchase Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum borrowing under facility | 1,250,000,000 | $ 1,250,000,000 | |||||||
Extension option | 1 year | ||||||||
Balance | 691,912,000 | $ 691,912,000 | |||||||
Borrowings Outstanding | 691,900,000 | 691,900,000 | £ 108,200 | ||||||
Line of Credit | Goldman Sachs Repurchase Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum borrowing under facility | $ 500,000,000 | 500,000,000 | 500,000,000 | 300,000,000 | $ 300,000,000 | ||||
Number of extensions available | extension | 2 | ||||||||
Extension option | 1 year | ||||||||
Balance | 267,711,000 | 267,711,000 | |||||||
Borrowings Outstanding | 267,711,000 | 267,711,000 | 210,072,000 | ||||||
JP Morgan Facility | Line of Credit | JP Morgan Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Number of subsidiaries | subsidiary | 2 | ||||||||
Amended and Restated JPMorgan Facility | Line of Credit | JP Morgan Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum borrowing under facility | $ 1,300,000,000 | 1,300,000,000 | |||||||
Number of extensions available | extension | 2 | ||||||||
Extension option | 1 year | ||||||||
Balance | $ 1,100,000,000 | 1,100,000,000 | 38,000 | ||||||
USD | Line of Credit | JP Morgan Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum borrowing under facility | 1,253,271,000 | 1,253,271,000 | 1,333,503,000 | ||||||
Borrowings Outstanding | 1,067,635,000 | 1,067,635,000 | 680,141,000 | ||||||
USD | Line of Credit | DB Repurchase Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum borrowing under facility | 1,116,993,000 | 1,116,993,000 | 904,181,000 | ||||||
Borrowings Outstanding | 558,905,000 | 558,905,000 | 419,823,000 | ||||||
USD | Line of Credit | Credit Suisse Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum borrowing under facility | 174,279,000 | 174,279,000 | 187,117,000 | ||||||
Balance | 174,279,000 | 174,279,000 | |||||||
Borrowings Outstanding | 174,279,000 | 174,279,000 | 187,117,000 | ||||||
Term after either party notifies the other party of intention to terminate | 6 months | ||||||||
GBP | Line of Credit | JP Morgan Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum borrowing under facility | 46,729,000 | 46,729,000 | 48,497,000 | ||||||
Borrowings Outstanding | 46,729,000 | 46,729,000 | 48,497,000 | ||||||
GBP | Line of Credit | DB Repurchase Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum borrowing under facility | 133,007,000 | 133,007,000 | 150,819,000 | ||||||
Borrowings Outstanding | 133,007,000 | 133,007,000 | 150,819,000 | ||||||
GBP | Line of Credit | Credit Suisse Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum borrowing under facility | 124,707,000 | 124,707,000 | 151,773,000 | ||||||
Balance | £ | 124,707 | ||||||||
Borrowings Outstanding | 124,707,000 | 124,707,000 | 101,500 | 151,773,000 | |||||
Term after either party notifies the other party of intention to terminate | 6 months | ||||||||
GBP | Line of Credit | HSBC Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum borrowing under facility | 36,621,000 | 36,621,000 | 48,835,000 | ||||||
Balance | 36,621,000 | 36,621,000 | |||||||
Borrowings Outstanding | 36,621,000 | 36,621,000 | 48,835,000 | ||||||
Line of credit, amount outstanding | 36,600,000 | 36,600,000 | 29,800 | ||||||
EUR | Line of Credit | HSBC Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum borrowing under facility | 149,724,000 | 149,724,000 | 0 | ||||||
Balance | 149,724,000 | 149,724,000 | |||||||
Borrowings Outstanding | 149,724,000 | 149,724,000 | $ 0 | ||||||
Line of credit, amount outstanding | $ 149,700,000 | $ 149,700,000 | £ 137,400 |
Secured Debt Arrangements, Ne_4
Secured Debt Arrangements, Net - Remaining Maturities of Borrowings (Details) - Sep. 30, 2019 - Line of Credit £ in Thousands, $ in Thousands | USD ($) | GBP (£) |
Line of Credit Facility [Line Items] | ||
Less than 1 year | $ 499,003 | |
1 to 3 years | 1,317,670 | |
3 to 5 years | 742,645 | |
More than 5 years | 0 | |
Total | 2,559,318 | |
JP Morgan Facility | ||
Line of Credit Facility [Line Items] | ||
Less than 1 year | 60,500 | |
1 to 3 years | 311,219 | |
3 to 5 years | 742,645 | |
More than 5 years | 0 | |
Total | 1,114,364 | |
DB Repurchase Facility | ||
Line of Credit Facility [Line Items] | ||
Less than 1 year | 102,896 | |
1 to 3 years | 589,016 | |
3 to 5 years | 0 | |
More than 5 years | 0 | |
Total | 691,912 | |
Goldman Facility | ||
Line of Credit Facility [Line Items] | ||
Less than 1 year | 0 | |
1 to 3 years | 267,711 | |
3 to 5 years | 0 | |
More than 5 years | 0 | |
Total | 267,711 | |
USD | CS Facility | ||
Line of Credit Facility [Line Items] | ||
Less than 1 year | 174,279 | |
1 to 3 years | 0 | |
3 to 5 years | 0 | |
More than 5 years | 0 | |
Total | 174,279 | |
GBP | CS Facility | ||
Line of Credit Facility [Line Items] | ||
Less than 1 year | £ | £ 124,707 | |
1 to 3 years | £ | 0 | |
3 to 5 years | £ | 0 | |
More than 5 years | £ | 0 | |
Total | £ | £ 124,707 | |
GBP | HSBC Facility | ||
Line of Credit Facility [Line Items] | ||
Less than 1 year | 36,621 | |
1 to 3 years | 0 | |
3 to 5 years | 0 | |
More than 5 years | 0 | |
Total | 36,621 | |
EUR | HSBC Facility | ||
Line of Credit Facility [Line Items] | ||
Less than 1 year | 0 | |
1 to 3 years | 149,724 | |
3 to 5 years | 0 | |
More than 5 years | 0 | |
Total | $ 149,724 |
Secured Debt Arrangements, Ne_5
Secured Debt Arrangements, Net - Summary of Outstanding Balances, Maximum and Average Balances of Borrowings (Details) - 9 months ended Sep. 30, 2019 - Line of Credit £ in Thousands, $ in Thousands | USD ($) | GBP (£) | GBP (£) |
Line of Credit Facility [Line Items] | |||
Balance | $ 2,559,318 | ||
Amortized Cost of Collateral | 4,118,926 | ||
JP Morgan Facility | |||
Line of Credit Facility [Line Items] | |||
Balance | 1,114,364 | ||
Amortized Cost of Collateral | 1,809,170 | ||
Maximum Month-End Balance | 1,150,317 | ||
Average Month-End Balance | 875,895 | ||
DB Repurchase Facility | |||
Line of Credit Facility [Line Items] | |||
Balance | 691,912 | ||
Amortized Cost of Collateral | 1,205,456 | ||
Maximum Month-End Balance | 691,912 | ||
Average Month-End Balance | 598,285 | ||
Goldman Facility | |||
Line of Credit Facility [Line Items] | |||
Balance | 267,711 | ||
Amortized Cost of Collateral | 445,898 | ||
Maximum Month-End Balance | 312,507 | ||
Average Month-End Balance | 220,631 | ||
USD | CS Facility | |||
Line of Credit Facility [Line Items] | |||
Balance | 174,279 | ||
Amortized Cost of Collateral | 241,989 | ||
Maximum Month-End Balance | 188,037 | ||
Average Month-End Balance | 180,792 | ||
GBP | CS Facility | |||
Line of Credit Facility [Line Items] | |||
Balance | £ | £ 124,707 | ||
Amortized Cost of Collateral | £ | £ 178,612 | ||
Maximum Month-End Balance | £ | £ 150,811 | ||
Average Month-End Balance | £ | £ 139,991 | ||
GBP | HSBC Facility | |||
Line of Credit Facility [Line Items] | |||
Balance | 36,621 | ||
Amortized Cost of Collateral | 52,593 | ||
Maximum Month-End Balance | 50,784 | ||
Average Month-End Balance | 44,007 | ||
EUR | HSBC Facility | |||
Line of Credit Facility [Line Items] | |||
Balance | 149,724 | ||
Amortized Cost of Collateral | 185,208 | ||
Maximum Month-End Balance | 152,155 | ||
Average Month-End Balance | $ 150,914 |
Senior Secured Term Loan, Net (
Senior Secured Term Loan, Net (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |
May 31, 2019 | Sep. 30, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | |
Debt Instrument [Line Items] | ||||
Repayments of senior secured term loan principal | $ 1,300,000 | $ 1,250,000 | $ 0 | |
London Interbank Offered Rate (LIBOR) | Interest Rate Swap | ||||
Debt Instrument [Line Items] | ||||
Fixed interest rate | 2.12% | |||
Secured Debt | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, face amount | $ 500,000,000 | |||
Debt instrument, issuance price as a percentage | 99.50% | |||
Debt instrument, covenant, non-recourse debt to tangible net worth ratio, maximum | 3 | |||
Debt instrument, covenant, unencumbered assets to pari-passu indebtedness ratio, maximum | 1.25 | |||
Effective interest rate | 4.87% | |||
Secured Debt | London Interbank Offered Rate (LIBOR) | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 2.75% |
Convertible Senior Notes, Net_2
Convertible Senior Notes, Net (Details) | Mar. 15, 2019USD ($) | Aug. 02, 2018USD ($)shares | Sep. 30, 2018USD ($)shares | Sep. 30, 2019USD ($) | Mar. 31, 2019USD ($)shares | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($)shares | Sep. 30, 2019USD ($)shares | Sep. 30, 2018USD ($)shares | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($)offering | Dec. 31, 2014USD ($)offering |
Debt Instrument [Line Items] | ||||||||||||
Cash payment for debt redemption | $ 704,000 | $ 40,461,000 | ||||||||||
Conversions of convertible senior notes for common stock | $ 178,566,000 | 33,778,000 | 178,566,000 | |||||||||
Loss on early extinguishment of debt | $ 0 | $ 2,573,000 | 0 | $ 2,573,000 | ||||||||
Convertible senior notes, net | 560,589,000 | $ 592,000,000 | $ 560,589,000 | $ 592,000,000 | ||||||||
Common Stock | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Conversions of convertible senior notes for common stock (in shares) | shares | 10,744,577 | 1,967,361 | 10,744,577 | |||||||||
Conversions of convertible senior notes for common stock | $ 107,000 | $ 20,000 | $ 107,000 | |||||||||
Additional Paid In Capital | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Conversions of convertible senior notes for common stock | 178,459,000 | 33,758,000 | 178,459,000 | |||||||||
Convertible Debt | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Principal Amount | 575,000,000 | 575,000,000 | ||||||||||
Interest expense | 7,200,000 | 5,500,000 | 21,900,000 | 20,700,000 | ||||||||
Non-cash interest expense | 1,500,000 | $ 1,200,000 | 4,600,000 | $ 4,900,000 | ||||||||
Convertible Debt | 2019 and 2022 Notes | Additional Paid In Capital | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Conversions of convertible senior notes for common stock | 15,400,000 | |||||||||||
Convertible Debt | 2019 Notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Number of debt offerings issued | offering | 2 | |||||||||||
Principal Amount | $ 254,800,000 | |||||||||||
Coupon Rate | 5.50% | |||||||||||
Proceeds from issuance of convertible senior notes | $ 248,600,000 | |||||||||||
Principal amount redeemed | $ 206,200,000 | $ 47,900,000 | ||||||||||
Cash payment for debt redemption | $ 700,000 | $ 39,300,000 | $ 200,000 | |||||||||
Loss on early extinguishment of debt | 0 | 0 | 2,600,000 | |||||||||
Convertible Debt | 2019 Notes | Common Stock | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Conversions of convertible senior notes for common stock (in shares) | shares | 10,020,328 | 2,775,509 | 1,967,361 | 10,744,577 | ||||||||
Conversions of convertible senior notes for common stock | $ 33,800,000 | |||||||||||
Convertible Debt | 2019 Notes | Additional Paid In Capital | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Conversions of convertible senior notes for common stock | $ 166,000,000 | $ 13,900,000 | ||||||||||
Convertible Debt | 2022 Notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Number of debt offerings issued | offering | 2 | |||||||||||
Principal Amount | $ 345,000,000 | |||||||||||
Coupon Rate | 4.75% | |||||||||||
Proceeds from issuance of convertible senior notes | $ 337,500,000 | |||||||||||
Convertible senior notes, net | 337,100,000 | 337,100,000 | ||||||||||
Unamortized discount | 7,900,000 | 7,900,000 | ||||||||||
Convertible Debt | 2022 Notes | Additional Paid In Capital | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Conversions of convertible senior notes for common stock | 11,000,000 | |||||||||||
Convertible Debt | 2023 Notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Principal Amount | $ 230,000,000 | $ 230,000,000 | ||||||||||
Coupon Rate | 5.375% | 5.375% | ||||||||||
Proceeds from issuance of convertible senior notes | $ 223,700,000 | |||||||||||
Convertible senior notes, net | 223,500,000 | 223,500,000 | ||||||||||
Unamortized discount | $ 6,500,000 | 6,500,000 | ||||||||||
Convertible Debt | 2023 Notes | Additional Paid In Capital | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Conversions of convertible senior notes for common stock | $ 4,400,000 |
Convertible Senior Notes, Net -
Convertible Senior Notes, Net - Summary of Note Terms (Details) - Convertible Debt | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Dec. 31, 2018USD ($) | Sep. 30, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Debt Instrument [Line Items] | ||||
Principal Amount | $ 575,000,000 | |||
Conversion rate basis, principal amount | $ 1,000,000 | |||
2022 Notes | ||||
Debt Instrument [Line Items] | ||||
Principal Amount | $ 345,000,000 | |||
Coupon Rate | 4.75% | |||
Effective Rate | 5.60% | |||
Conversion Rate | 0.0502260 | |||
Remaining Period of Amortization | 2 years 10 months 24 days | |||
2023 Notes | ||||
Debt Instrument [Line Items] | ||||
Principal Amount | $ 230,000,000 | $ 230,000,000 | ||
Coupon Rate | 5.375% | 5.375% | ||
Effective Rate | 6.16% | 6.16% | ||
Conversion Rate | 0.0487187 | |||
Remaining Period of Amortization | 4 years 14 days |
Derivatives - Additional Inform
Derivatives - Additional Information (Details) | May 31, 2019 |
London Interbank Offered Rate (LIBOR) | Interest Rate Swap | |
Derivative [Line Items] | |
Fixed interest rate | 2.12% |
Secured Debt | |
Derivative [Line Items] | |
Effective interest rate | 4.87% |
Derivatives - Summary of Non-De
Derivatives - Summary of Non-Designated Foreign Exchange Forwards (Details) - Not Designated as Hedging Instrument $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019USD ($)contract | Dec. 31, 2018USD ($)contract | |
Interest Rate Swap | ||
Derivative [Line Items] | ||
Number of Contracts | contract | 1 | |
Aggregate Notional Amount (in thousands) | $ | $ 500,000 | |
Weighted-Average Years to Maturity | 6 years 7 months 13 days | |
GBP | Forward Currency Contract | ||
Derivative [Line Items] | ||
Number of Contracts | contract | 97 | 43 |
Aggregate Notional Amount (in thousands) | $ | $ 431,334 | $ 270,161 |
Weighted-Average Years to Maturity | 9 months | 8 months 8 days |
EUR | Forward Currency Contract | ||
Derivative [Line Items] | ||
Number of Contracts | contract | 27 | |
Aggregate Notional Amount (in thousands) | $ | $ 178,922 | |
Weighted-Average Years to Maturity | 1 year 5 months 19 days |
Derivatives - Summary of Amount
Derivatives - Summary of Amounts Recognized on Consolidated Statements of Operations Related to Company's Derivatives (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) on derivative instruments - unrealized | $ (11,391,000) | $ 20,986,000 | ||
Forward Currency Contract | Gain (Loss) on Derivative Instruments | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) on derivative instruments - unrealized | $ 16,227,000 | $ 5,046,000 | 12,029,000 | 20,987,000 |
Gain on derivative instruments - realized | 7,926,000 | 1,246,000 | 16,590,000 | 7,811,000 |
Interest Rate Cap | Gain (Loss) on Derivative Instruments | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) on derivative instruments - unrealized | 0 | (1,000) | 0 | (1,000) |
Gain on derivative instruments - realized | 24,153,000 | 6,291,000 | 28,619,000 | 28,797,000 |
Derivative notional amount | 0 | 36,200,000 | 0 | 36,200,000 |
Interest Rate Swap | Gain (Loss) on Derivative Instruments | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) on derivative instruments - unrealized | (10,307,000) | 0 | (23,420,000) | 0 |
Derivative notional amount | $ 500,000,000 | $ 0 | $ 500,000,000 | $ 0 |
Derivatives - Summarizes Gross
Derivatives - Summarizes Gross Asset and Liability Amounts Related to Derivatives (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Forward currency contracts | ||
Derivative [Line Items] | ||
Gross Amount of Recognized Assets (Liabilities) | $ 35,811 | $ 23,753 |
Gross Amounts Offset in the Condensed Consolidated Balance Sheet | (82) | (53) |
Net Amounts of Assets (Liabilities) Presented in the Condensed Consolidated Balance Sheet | 35,729 | 23,700 |
Interest rate swaps | ||
Derivative [Line Items] | ||
Gross Amount of Recognized Assets (Liabilities) | (23,420) | 0 |
Gross Amounts Offset in the Condensed Consolidated Balance Sheet | 0 | 0 |
Net Amounts of Assets (Liabilities) Presented in the Condensed Consolidated Balance Sheet | $ (23,420) | $ 0 |
Accounts Payable, Accrued Exp_3
Accounts Payable, Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Payables and Accruals [Abstract] | ||
Accrued dividends payable | $ 74,290 | $ 69,033 |
Collateral deposited under derivative agreements | 170 | 20,000 |
Accrued interest payable | 13,908 | 14,208 |
Accounts payable and other liabilities | 9,863 | 1,505 |
Total | $ 98,231 | $ 104,746 |
Related Party Transactions (Det
Related Party Transactions (Details) $ in Thousands, £ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||
May 31, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2018GBP (£) | May 31, 2018USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Dec. 31, 2018USD ($) | |
Related Party Transaction [Line Items] | |||||||||||
Base management fees incurred but not yet paid | $ 10,434 | $ 10,434 | $ 9,804 | ||||||||
Commercial mortgage loans and subordinate loans and other lending assets, net | 6,114,574 | 6,114,574 | 4,927,593 | ||||||||
Related party expenses | 10,434 | $ 9,515 | $ 30,306 | $ 26,620 | |||||||
Arrangement Fees | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Related party expenses | $ 600 | ||||||||||
Limited Liability Company | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Rate of management fees | 1.50% | ||||||||||
Extension period | 1 year | ||||||||||
Period of termination | 180 days | ||||||||||
Termination fee calculation period | 24 months | ||||||||||
Limited Liability Company | Management Fees | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Base management fees incurred but not yet paid | 10,400 | $ 10,400 | 9,800 | ||||||||
Affiliated Entity | Management Fees | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Related party expenses | 10,400 | 9,500 | 30,300 | 26,600 | |||||||
Affiliated Entity | Reimbursements | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Related party expenses | 500 | $ 600 | 2,000 | $ 1,800 | |||||||
Commercial Mortgage Portfolio Segment | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Commercial mortgage loans and subordinate loans and other lending assets, net | $ 4,779,501 | $ 4,779,501 | $ 3,878,981 | ||||||||
Commercial Mortgage Portfolio Segment | Affiliated Entity | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Payments to acquire loans receivable | $ 6,400 | £ 4.8 | $ 28,200 | $ 25,000 | $ 25,000 | ||||||
Commercial mortgage loans and subordinate loans and other lending assets, net | $ 300,000 | $ 125,000 | $ 100,000 |
Share-Based Payments - Addition
Share-Based Payments - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Apr. 16, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Recognized stock-based compensation expense | $ 3,889 | $ 4,048 | $ 12,084 | $ 11,404 | ||
Restricted Stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Unrecognized stock-based compensation expense | 300 | 300 | ||||
RSU | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Unrecognized stock-based compensation expense | $ 19,500 | $ 19,500 | ||||
LTIP | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares authorized (in shares) | 7,000,000 | |||||
Common stock, shares delivered | 159 | 514 | 433,585 | 346,510 | ||
LTIP | RSU | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock units vested | 263 | 807 | 730,980 | 604,484 | ||
Adjustments to additional paid in capital, income tax deficiency from share-based compensation | $ 5,000 | $ 4,700 | ||||
Common Stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share price (in dollars per share) | $ 16.66 | |||||
Common stock, shares delivered | 159 | 514 | 460,830 | 374,580 |
Share-Based Payments - Summary
Share-Based Payments - Summary of Grants, Exchanges and Forfeitures of Restricted Stock and RSUs (Details) - LTIP $ in Thousands | 9 Months Ended |
Sep. 30, 2019USD ($)shares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Grant Date Fair Value | $ | $ 500 |
Restricted Stock | |
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) | 65,697 |
Granted (in shares) | 27,245 |
Vested (in shares) | (47,586) |
Forfeitures (in shares) | 0 |
Outstanding, ending balance (in shares) | 45,356 |
RSU | |
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) | 1,852,957 |
Granted (in shares) | 0 |
Vested (in shares) | (263) |
Forfeitures (in shares) | (16,451) |
Outstanding, ending balance (in shares) | 1,836,243 |
Share-Based Payments - Summar_2
Share-Based Payments - Summary of Restricted Stock and RSU Vesting Dates (Details) - LTIP | Sep. 30, 2019shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares vesting (in shares) | 1,881,599 |
2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares vesting (in shares) | 901,403 |
2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares vesting (in shares) | 646,871 |
2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares vesting (in shares) | 333,325 |
Restricted Stock | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares vesting (in shares) | 45,356 |
Restricted Stock | 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares vesting (in shares) | 20,000 |
Restricted Stock | 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares vesting (in shares) | 25,356 |
Restricted Stock | 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares vesting (in shares) | 0 |
RSU | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares vesting (in shares) | 1,836,243 |
RSU | 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares vesting (in shares) | 881,403 |
RSU | 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares vesting (in shares) | 621,515 |
RSU | 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares vesting (in shares) | 333,325 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | Jun. 10, 2019 | Aug. 02, 2018 | Sep. 30, 2018 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 |
Class of Stock [Line Items] | |||||||||||
Common stock, shares authorized (in shares) | 450,000,000 | 450,000,000 | 450,000,000 | ||||||||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 | ||||||||
Preferred stock, shares authorized (in shares) | 50,000,000 | 50,000,000 | 50,000,000 | ||||||||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 | ||||||||
Common stock, shares issued (in shares) | 153,531,756 | 153,531,756 | 133,853,565 | ||||||||
Common stock, shares, outstanding (in shares) | 153,531,756 | 153,531,756 | 133,853,565 | ||||||||
Proceeds from issuance of common stock net of offering costs | $ 314,800 | $ 275,900 | |||||||||
Increase to additional paid in capital as a result of conversion of 2019 Notes | $ 178,566 | $ 33,778 | $ 178,566 | ||||||||
Series B Preferred Stock | |||||||||||
Class of Stock [Line Items] | |||||||||||
Preferred stock, shares issued (in shares) | 6,770,393 | 6,770,393 | 6,770,393 | ||||||||
Preferred stock, shares outstanding (in shares) | 6,770,393 | 6,770,393 | 6,770,393 | ||||||||
Preferred stock dividend percentage | 8.00% | ||||||||||
Unpaid dividends (in dollars per share) | $ 0.50 | $ 0.50 | $ 0.50 | ||||||||
Series C Preferred Stock | |||||||||||
Class of Stock [Line Items] | |||||||||||
Preferred stock, shares issued (in shares) | 0 | 0 | 6,900,000 | ||||||||
Preferred stock, shares outstanding (in shares) | 0 | 0 | 6,900,000 | ||||||||
Redemption of preferred stock (in shares) | 6,900,000 | ||||||||||
Preferred stock dividend percentage | 8.00% | ||||||||||
Redemption price (in dollars per share) | $ 25 | ||||||||||
Unpaid dividends (in dollars per share) | $ 0.2223 | $ 0.22 | 0.50 | ||||||||
Common Stock | |||||||||||
Class of Stock [Line Items] | |||||||||||
Issuance of common stock (in shares) | 17,250,000 | 15,525,000 | |||||||||
Conversions of convertible senior notes for common stock (in shares) | 10,744,577 | 1,967,361 | 10,744,577 | ||||||||
Increase to additional paid in capital as a result of conversion of 2019 Notes | $ 107 | $ 20 | $ 107 | ||||||||
2019 Notes | Convertible Debt | Common Stock | |||||||||||
Class of Stock [Line Items] | |||||||||||
Shares issued, price per share (in dollars per share) | $ 17.17 | ||||||||||
Conversions of convertible senior notes for common stock (in shares) | 10,020,328 | 2,775,509 | 1,967,361 | 10,744,577 | |||||||
Increase to additional paid in capital as a result of conversion of 2019 Notes | $ 33,800 | ||||||||||
Follow On Public Offering | Common Stock | |||||||||||
Class of Stock [Line Items] | |||||||||||
Issuance of common stock (in shares) | 17,250,000 | 15,525,000 | |||||||||
Shares issued, price per share (in dollars per share) | $ 18.27 | $ 17.77 |
Stockholders' Equity - Dividend
Stockholders' Equity - Dividends Declared (Details) - $ / shares | Jun. 10, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 |
Class of Stock [Line Items] | |||||||
Dividends declared (in dollars per share) | $ 0.46 | $ 0.46 | $ 1.38 | $ 1.38 | |||
Common stock | |||||||
Class of Stock [Line Items] | |||||||
Dividends declared (in dollars per share) | 0.46 | $ 0.46 | $ 0.46 | ||||
Series B Preferred Stock | |||||||
Class of Stock [Line Items] | |||||||
Dividends declared (in dollars per share) | $ 0.50 | 0.50 | 0.50 | ||||
Series C Preferred Stock | |||||||
Class of Stock [Line Items] | |||||||
Dividends declared (in dollars per share) | $ 0.2223 | $ 0.22 | $ 0.50 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | |
Schedule of Equity Method Investments [Line Items] | ||
Total damages including punitive | $ 70,000 | |
Damages sought by plaintiff | 700,000 | |
Unfunded loan commitments | 1,073,423 | $ 1,095,598 |
Commercial Mortgage and Subordinated Portfolio Segment | ||
Schedule of Equity Method Investments [Line Items] | ||
Unfunded loan commitments | $ 1,100,000 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Carrying Value and Estimated Fair Value of Company's Financial Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Carrying Value | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Cash and cash equivalents | $ 160,934 | $ 109,806 |
Estimate of Fair Value Measurement | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Cash and cash equivalents | 160,934 | 109,806 |
Level 3 | Carrying Value | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Secured debt arrangements, net | (2,541,287) | (1,897,077) |
Senior secured term loan, net | (488,947) | 0 |
Level 3 | Estimate of Fair Value Measurement | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Secured debt arrangements, net | (2,541,287) | (1,897,077) |
Senior secured term loan, net | (499,375) | 0 |
Level 3 | 2019 Notes | Carrying Value | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes | 0 | (34,278) |
Level 3 | 2019 Notes | Estimate of Fair Value Measurement | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes | 0 | (35,276) |
Level 3 | 2022 Notes | Carrying Value | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes | (337,126) | (335,291) |
Level 3 | 2022 Notes | Estimate of Fair Value Measurement | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes | (352,331) | (326,025) |
Level 3 | 2023 Notes | Carrying Value | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes | (223,463) | (222,431) |
Level 3 | 2023 Notes | Estimate of Fair Value Measurement | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes | (234,313) | (221,964) |
Level 3 | Commercial Mortgage Portfolio Segment | Carrying Value | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 4,779,501 | 3,878,981 |
Level 3 | Commercial Mortgage Portfolio Segment | Estimate of Fair Value Measurement | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 4,828,398 | 3,894,947 |
Level 3 | Subordinate Mortgage Portfolio Segment | Carrying Value | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 1,335,073 | 1,048,612 |
Level 3 | Subordinate Mortgage Portfolio Segment | Estimate of Fair Value Measurement | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | $ 1,344,035 | $ 1,047,854 |
Net Income per Share - Basic an
Net Income 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 | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Basic Earnings | ||||
Net income | $ 29,089 | $ 62,217 | $ 158,271 | $ 166,996 |
Preferred dividends | (3,385) | (6,836) | (15,139) | (20,505) |
Net income available to common stockholders | 25,704 | 55,381 | 143,132 | 146,491 |
Less: Dividends on participating securities | (847) | (733) | (2,547) | (2,215) |
Basic Earnings | 24,857 | 54,648 | 140,585 | 144,276 |
Diluted Earnings | ||||
Basic weighted-average shares of common stock outstanding | 25,704 | 55,381 | 143,132 | 146,491 |
Add: Interest expense on Notes | 0 | 6,746 | 0 | 25,607 |
Diluted Earnings | $ 25,704 | $ 62,127 | $ 143,132 | $ 172,098 |
Number of Shares: | ||||
Basic weighted-average shares of common stock outstanding | 153,531,678 | 129,188,343 | 144,638,237 | 120,876,240 |
Diluted weighted-average shares of common stock outstanding | 153,531,678 | 153,918,435 | 144,638,237 | 150,424,889 |
Earnings Per Share Attributable to Common Stockholders | ||||
Basic (in dollars per share) | $ 0.16 | $ 0.42 | $ 0.97 | $ 1.19 |
Diluted (in dollars per share) | $ 0.16 | $ 0.40 | $ 0.97 | $ 1.14 |
Net Income per Share - Addition
Net Income per Share - Additional Information (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Effect of dilutive securities - Convertible Notes (in shares) | 29,041,856 | 29,548,649 | ||
Convertible Debt Securities [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Unvested RSUs (in shares) | 28,533,271 | 29,041,856 | ||
RSU | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Unvested RSUs (in shares) | 1,839,631 | 1,593,070 | 1,845,086 | 1,617,398 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event $ in Millions | 1 Months Ended |
Oct. 23, 2019USD ($) | |
Subsequent Event [Line Items] | |
Funded amount of mortgages | $ 26.7 |
Proceeds from loan repayments | 60.2 |
Commercial Mortgage Portfolio Segment | |
Subsequent Event [Line Items] | |
Committed capital | 548.3 |
Funded amount of mortgages | $ 464.3 |