Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2021 | Apr. 21, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Annual Report | true | |
Document Period End Date | Mar. 31, 2021 | |
Current Fiscal Year End Date | --12-31 | |
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, $0.01 par value | |
Trading Symbol | ARI | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Small Business Entity | false | |
Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 139,884,060 | |
Amendment flag | false | |
Document fiscal year focus | 2021 | |
Document fiscal period focus | Q1 | |
Entity central index key | 0001467760 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | |
Assets: | |||
Cash and cash equivalents | $ 294,060 | $ 325,498 | |
Total carrying value, net | 6,820,074 | 6,496,977 | |
Other assets | 68,882 | 74,640 | |
Real estate owned, held for sale | 42,355 | 42,905 | |
Total Assets | 7,225,371 | 6,940,020 | |
Liabilities: | |||
Convertible senior notes, net | 566,711 | 565,654 | |
Senior secured term loans, net (net of deferred financing costs of $10,496 and $7,130 in 2021 and 2020, respectively) | 775,974 | 483,465 | |
Accounts payable, accrued expenses and other liabilities | [1] | 74,899 | 74,887 |
Participations sold | 50,709 | 34,974 | |
Derivative liabilities, net | 20,382 | 31,241 | |
Payable to related party | 9,364 | 9,598 | |
Total Liabilities | 4,949,618 | 4,669,491 | |
Commitments and Contingencies (see Note 16) | |||
Stockholders’ Equity: | |||
Preferred stock, $0.01 par value, 50,000,000 shares authorized, Series B, 6,770,393 shares issued and outstanding ($169,260 liquidation preference) | 68 | 68 | |
Common stock, $0.01 par value, 450,000,000 shares authorized, 139,848,875 and 139,295,867 shares issued and outstanding in 2021 and 2020, respectively | 1,398 | 1,393 | |
Additional paid-in-capital | 2,707,855 | 2,707,792 | |
Accumulated deficit | (433,568) | (438,724) | |
Total Stockholders’ Equity | 2,275,753 | 2,270,529 | |
Total Liabilities and Stockholders’ Equity | 7,225,371 | 6,940,020 | |
Secured Debt | |||
Liabilities: | |||
Secured debt arrangements, net (net of deferred financing costs of $11,800 and $12,993 in 2021 and 2020, respectively) | 3,418,579 | 3,436,672 | |
Mortgages | |||
Liabilities: | |||
Secured debt arrangements, net (net of deferred financing costs of $11,800 and $12,993 in 2021 and 2020, respectively) | 33,000 | 33,000 | |
Commercial Mortgage Portfolio Segment | |||
Assets: | |||
Total carrying value, net | [2],[3] | 5,754,258 | 5,451,084 |
Liabilities: | |||
Participations sold | 23,974 | 9,217 | |
Subordinate Mortgage Portfolio Segment | |||
Assets: | |||
Total carrying value, net | [3] | 1,065,816 | 1,045,893 |
Liabilities: | |||
Participations sold | $ 26,735 | $ 25,757 | |
[1] | Includes $3,794 and $3,365 of General CECL Allowance related to unfunded commitments on commercial mortgage loans, subordinate loans and other lending assets, net in 2021 and 2020, respectively. | ||
[2] | Includes $5,319,621 and $5,418,999 pledged as collateral under secured debt arrangements in 2021 and 2020, respectively | ||
[3] | Net of $211,435 and $213,102 CECL Allowances in 2021 and 2020, respectively, comprised of $175,000 Specific CECL Allowance and $36,435 and $38,102 General CECL Allowance, respectively. |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Deferred financing costs | $ 10,496 | $ 7,130 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 50,000,000 | 50,000,000 |
Preferred stock, shares issued | 6,770,393 | 6,770,393 |
Preferred stock, shares outstanding | 6,770,393 | 6,770,393 |
Preferred stock, liquidation preference | $ 169,260 | $ 169,260 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 450,000,000 | 450,000,000 |
Common stock, shares issued | 139,848,875 | 139,295,867 |
Common stock, shares outstanding | 139,848,875 | 139,295,867 |
CECL allowance | $ 211,435 | $ 213,102 |
Financing receivable, allowance for credit loss | 175,000 | 175,000 |
Loan specific reserves | 36,435 | 38,102 |
General CECL allowance related to unfunded commitments | 3,794 | 3,365 |
Secured Debt | ||
Deferred financing costs | 11,800 | 12,993 |
Commercial Mortgage Portfolio Segment | ||
Loans pledged as collateral | $ 5,319,621 | $ 5,418,999 |
Condensed Consolidated Statemen
Condensed Consolidated Statement of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | ||
Net interest income: | |||
Interest income from commercial mortgage loans | $ 75,356 | $ 81,855 | |
Interest income from subordinate loans and other lending assets | 31,459 | 34,018 | |
Interest expense | (35,664) | (41,205) | |
Net interest income | 71,151 | 74,668 | |
Operating expenses: | |||
General and administrative expenses (includes equity-based compensation of $4,387 and $4,263 in 2021 and 2020, respectively) | (6,940) | (6,531) | |
Management fees to related party | (9,364) | (10,268) | |
Total operating expenses | (16,304) | (16,799) | |
Other income | 92 | 760 | |
Provision for loan losses and impairments, net | [1] | 1,238 | (183,465) |
Realized losses and impairments on real estate owned | (550) | 0 | |
Foreign currency translation loss | (7,449) | (37,949) | |
Gain (loss) on sale of derivatives | 357 | (35,548) | |
Net income (loss) | 58,335 | (127,842) | |
Preferred dividends | (3,385) | (3,385) | |
Net income (loss) available to common stockholders | $ 54,950 | $ (131,227) | |
Net income (loss) per share of common stock: | |||
Basic (in dollars per share) | $ 0.39 | $ (0.86) | |
Diluted (in dollars per share) | $ 0.37 | $ (0.86) | |
Basic weighted-average shares of common stock outstanding (in shares) | 139,805,863 | 153,948,191 | |
Diluted weighted-average shares of common stock outstanding (in shares) | 170,792,684 | 153,948,191 | |
Dividends declared (in dollars per share) | $ 0.35 | $ 0.40 | |
Forward currency contracts | |||
Operating expenses: | |||
Gain (loss) on sale of derivatives | $ 9,800 | $ 70,491 | |
Interest rate cap and swaps | |||
Operating expenses: | |||
Gain (loss) on sale of derivatives | $ 357 | $ (35,548) | |
[1] | Comprised of $0 and $150,000 Specific CECL Allowance and $(1,238) and $33,465 of General CECL (Reversals) and Allowance for 2021 and 2020, respectively. |
Condensed Consolidated Statem_2
Condensed Consolidated Statement of Operations (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
General and administrative expenses, equity-based compensation | $ 4,387 | $ 4,263 |
Unrealized gain (loss) on derivatives | 10,859 | 26,888 |
Specific CECL allowance (reversal) | 0 | 150,000 |
General CECL allowance (reversal) | (1,238) | 33,465 |
Foreign currency forward, net | ||
Unrealized gain (loss) on derivatives | $ 10,502 | $ 62,436 |
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 | Adjustment due to Adoption of ASU | Adjustment due to Adoption of ASUAccumulated Deficit |
Stockholders' equity, beginning balance (in shares) at Dec. 31, 2019 | 6,770,393 | 153,537,296 | |||||
Stockholders' equity, beginning balance at Dec. 31, 2019 | $ 2,629,975 | $ 68 | $ 1,535 | $ 2,825,317 | $ (196,945) | $ (30,867) | $ (30,867) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Accounting standards update | us-gaap:AccountingStandardsUpdate201613Member | ||||||
Capital increase (decrease) related to Equity Incentive Plan (in shares) | 503,251 | ||||||
Capital increase related to Equity Incentive Plan | $ (2,231) | $ 5 | (2,236) | ||||
Repurchase of common stock (in shares) | (300,000) | ||||||
Repurchase of Common Stock | (2,441) | $ (3) | (2,438) | ||||
Net income (loss) | (127,842) | (127,842) | |||||
Dividends declared on preferred stock - | (3,385) | (3,385) | |||||
Dividends declared on common stock - | (62,298) | (62,298) | |||||
Stockholders' equity, ending balance (in shares) at Mar. 31, 2020 | 6,770,393 | 153,740,547 | |||||
Stockholders' equity, ending balance at Mar. 31, 2020 | 2,400,911 | $ 68 | $ 1,537 | 2,820,643 | (421,337) | ||
Stockholders' equity, beginning balance (in shares) at Dec. 31, 2020 | 6,770,393 | 139,295,867 | |||||
Stockholders' equity, beginning balance at Dec. 31, 2020 | 2,270,529 | $ 68 | $ 1,393 | 2,707,792 | (438,724) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Capital increase (decrease) related to Equity Incentive Plan (in shares) | 553,008 | ||||||
Capital increase related to Equity Incentive Plan | 108 | $ 5 | 103 | ||||
Offering costs | (40) | (40) | |||||
Net income (loss) | 58,335 | 58,335 | |||||
Dividends declared on preferred stock - | (3,385) | (3,385) | |||||
Dividends declared on common stock - | (49,794) | (49,794) | |||||
Stockholders' equity, ending balance (in shares) at Mar. 31, 2021 | 6,770,393 | 139,848,875 | |||||
Stockholders' equity, ending balance at Mar. 31, 2021 | $ 2,275,753 | $ 68 | $ 1,398 | $ 2,707,855 | $ (433,568) |
Condensed Consolidated Statem_4
Condensed Consolidated Statement of Changes in Stockholders’ Equity (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends declared on preferred stock (in dollars per share) | $ 0.50 | $ 0.50 |
Dividends declared (in dollars per share) | $ 0.35 | $ 0.40 |
Condensed Consolidated Statem_5
Condensed Consolidated Statement of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | ||
Cash flows provided by operating activities: | |||
Net income (loss) | $ 58,335 | $ (127,842) | |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Amortization of discount/premium and PIK | (24,671) | (18,270) | |
Amortization of deferred financing costs | 3,196 | 3,312 | |
Equity-based compensation | 4,387 | 4,263 | |
(Provision for) reversal of loan losses, net | [1] | (1,238) | 183,465 |
Foreign currency loss | 7,479 | 42,108 | |
Unrealized gain on derivative instruments | (10,859) | (26,888) | |
Loss on early extinguishment of debt | 550 | 0 | |
Changes in operating assets and liabilities: | |||
Proceeds received from PIK | 6,000 | 0 | |
Other assets | 1,238 | (6,696) | |
Accounts payable, accrued expenses and other liabilities | (274) | 807 | |
Payable to related party | (233) | (162) | |
Net cash provided by operating activities | 43,910 | 54,097 | |
Cash flows used in investing activities: | |||
New funding of commercial mortgage loans | (417,161) | (439,936) | |
Add-on funding of commercial mortgage loans | (77,499) | (99,768) | |
Add-on funding of subordinate loans and other lending assets | (41,317) | (18,753) | |
Proceeds received from the repayment and sale of commercial mortgage loans | 200,077 | 221,972 | |
Proceeds received from the repayment of subordinate loans and other lending assets | 30,470 | 842 | |
Origination and exit fees received on commercial mortgage loans, and subordinate loans and other lending assets, net | 6,301 | 5,445 | |
Increase in collateral held related to derivative contracts, net | 430 | 7,070 | |
Net cash used in investing activities | (298,699) | (323,128) | |
Cash flows from financing activities: | |||
Payment of offering costs | (40) | 0 | |
Repurchase of common stock | 0 | (2,441) | |
Proceeds from secured debt arrangements | 322,234 | 1,357,442 | |
Repayments of secured debt arrangements | (331,613) | (844,051) | |
Repayments of senior secured term loan principal | (1,250) | (1,250) | |
Proceeds from issuance of senior secured term loan | 297,000 | 0 | |
Payment of deferred financing costs | (5,369) | (2,722) | |
Collateral deposited under secured debt arrangements | 0 | (26,262) | |
Other financing activities | (4,279) | (6,494) | |
Dividends on common stock | (49,947) | (71,950) | |
Dividends on preferred stock | (3,385) | (3,385) | |
Net cash provided by financing activities | 223,351 | 398,887 | |
Net increase (decrease) in cash and cash equivalents | (31,438) | 129,856 | |
Cash and cash equivalents, beginning of period | 325,498 | 452,282 | |
Cash and cash equivalents, end of period | 294,060 | 582,138 | |
Supplemental disclosure of cash flow information: | |||
Interest paid | 36,494 | 36,979 | |
Supplemental disclosure of non-cash financing activities: | |||
Dividend declared, not yet paid | 52,615 | 65,684 | |
Additions to participations sold | 15,735 | 0 | |
Loan proceeds held by servicer | 1,550 | 0 | |
Deferred financing costs, not yet paid | $ 2,596 | $ 5,193 | |
[1] | Comprised of $0 and $150,000 Specific CECL Allowance and $(1,238) and $33,465 of General CECL (Reversals) and Allowance for 2021 and 2020, respectively. |
Organization
Organization | 3 Months Ended |
Mar. 31, 2021 | |
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 | 3 Months Ended |
Mar. 31, 2021 | |
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 allowances. 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, 2020 ("Annual Report"), 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 months ended March 31, 2021 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. Risks and Uncertainties During the first quarter of 2020, there was a global outbreak of a novel coronavirus ("COVID-19"), which was declared by the World Health Organization as a pandemic. In response to COVID-19, the United States and numerous other countries have declared national emergencies, which has led to large scale quarantines as well as restrictions to business deemed non-essential. These responses to COVID-19 have disrupted economic activities and could have a continued significant adverse effect on economic and market conditions. As we are still in the midst of the COVID-19 pandemic we are not in a position to estimate the ultimate impact this will have on our business and the economy as a whole. We believe the estimates used in preparing our financial statements and related footnotes are reasonable and supportable based on the best information available to us as of March 31, 2021. The uncertainty surrounding COVID-19 may materially impact the accuracy of the estimates and assumptions used in the financial statements and related footnotes and, as a result, actual results may vary significantly from estimates. Recent Accounting Pronouncements In August 2020, the FASB issued ASU 2020-06 "Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity" ("ASU 2020-06"). The intention of ASU 2020-06 is to address the complexities in accounting for certain financial instruments with a debt and equity component. Under ASU 2020-06, the number of accounting models for convertible notes will be reduced and entities that issue convertible debt will be required to use the if-converted method for the computation of diluted "Earnings per share" under ASC 260. ASC 2020-06 is effective for fiscal years beginning after December 15, 2021 and may be adopted through either a modified retrospective method of transition or a fully retrospective method of transition. We are currently assessing the impact this guidance will have on our condensed consolidated financial statements. In March 2020, the FASB issued ASU 2020-04 “Reference Rate Reform (Topic 848) – Facilitation of the Effects of Reference Rate Reform on Financial Reporting” (“ASU 2020-04”). ASU 2020-04 provides optional expedients and exceptions for applying GAAP to debt instruments, derivatives, and other contracts that reference LIBOR or other reference rates expected to be discontinued as a result of reference rate reform. This guidance is optional and may be elected through December 31, 2022 using a prospective application on all eligible contract modifications. We have loan agreements, debt agreements, and an interest rate cap that incorporate LIBOR as a referenced interest rate. It is difficult to predict what effect, if any, the phase-out of LIBOR and the use of alternative benchmarks may have on our business or on the overall financial markets. We have not adopted any of the optional expedients or exceptions through March 31, 2021 , but will continue to evaluate the possible adoption of any such expedients or exceptions. |
Fair Value Disclosure
Fair Value Disclosure | 3 Months Ended |
Mar. 31, 2021 | |
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 value. Market-based or observable inputs are the preferred source of values, followed by valuation models using management's assumptions in the absence of market-based or observable 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 valuation methods used by 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 instrument. Our derivative instruments are classified as Level II in the fair value hierarchy. 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 our interest rate cap is determined by using the market standard methodology of discounting the future expected cash receipts that would occur if variable interest rates rise above the strike rate of the interest rate cap. The variable interest rates used in the calculation of projected receipts on the interest rate cap are based on a third party expert's expectation of future interest rates derived from observable market interest rate curves and volatilities. The fair value of our real estate owned, held for sale and the related debt is determined by using the market approach, less costs to sell. The market approach utilizes the fair value of similar assets and liabilities in the marketplace as well as an internal analysis as to selling price of specific assets and liabilities, which we deem to be significant unobservable inputs. As such the fair value of real estate owned, held for sale and the related debt falls within Level III of the fair value hierarchy. As of March 31, 2021 there was an increase in our expected costs to sell our real estate owned, held for sale and we performed a non-recurring fair value measurement. Refer to "Note 5 - Real Estate Owned and Related Debt, Held for Sale" for further discussion regarding real estate owned and related debt, held for sale. The following table summarizes the levels in the fair value hierarchy into which our assets and liabilities recorded at fair value were categorized as of March 31, 2021 and December 31, 2020 ($ in thousands): Fair Value as of March 31, 2021 Fair Value as of December 31, 2020 Level I Level II Level III Total Level I Level II Level III Total Recurring fair value measurements: Foreign currency forward, net $ — $ (20,873) $ — $ (20,873) $ — $ (31,375) $ — $ (31,375) Interest rate cap asset — 491 — 491 — 134 — 134 Total financial instruments $ — $ (20,382) $ — $ (20,382) $ — $ (31,241) $ — $ (31,241) Non-Recurring fair value measurements: Real estate owned asset, held for sale $ — $ — $ 42,355 $ 42,355 $ — $ — $ 42,905 $ 42,905 Debt related to real estate owned, held for sale — — (33,000) (33,000) — — (33,000) (33,000) Net real estate owned, and related debt, held for sale $ — $ — $ 9,355 $ 9,355 $ — $ — $ 9,905 $ 9,905 |
Commercial Mortgage, Subordinat
Commercial Mortgage, Subordinate Loans and Other Lending Assets, Net | 3 Months Ended |
Mar. 31, 2021 | |
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 March 31, 2021 and December 31, 2020 ($ in thousands): Loan Type March 31, 2021 December 31, 2020 Commercial mortgage loans, net (1) $ 5,754,258 $ 5,451,084 Subordinate loans and other lending assets, net 1,065,816 1,045,893 Carrying value, net $ 6,820,074 $ 6,496,977 ——————— (1) Includes $140.8 million and $136.1 million in 2021 and 2020, respectively, of contiguous financing structured as subordinate loans. Our loan portfolio consisted of 95% floating rate loans, based on amortized cost, as of March 31, 2021 and December 31, 2020. Activity relating to our loan portfolio, for the three months ended March 31, 2021, was as follows ($ in thousands): Principal Deferred Fees/Other Items (1) Specific CECL Allowance Carrying Value, Net (2) December 31, 2020 $ 6,728,424 $ (18,345) $ (175,000) $ 6,535,079 New loan fundings 417,161 — — 417,161 Add-on loan fundings (3) 133,437 — — 133,437 Loan repayments and sales (232,038) — — (232,038) Gain (loss) on foreign currency translation (17,175) 125 — (17,050) Deferred fees — (6,564) — (6,564) PIK interest and amortization of fees 21,339 5,145 — 26,484 March 31, 2021 $ 7,051,148 $ (19,639) $ (175,000) $ 6,856,509 General CECL Allowance (4) (36,435) Carrying value, net $ 6,820,074 ——————— (1) Other items primarily consist of purchase discounts or premiums, cost recovery interest, exit fees and deferred origination expenses. (2) December 31, 2020 carrying value excludes General CECL Allowance (3) Represents fundings for loans closed prior to 2021. (4) $3.8 million of the General CECL Allowance is excluded from this table because it relates to unfunded commitments and has been recorded as a liability under accounts payable, accrued expenses and other liabilities in our condensed consolidated balance sheet. The following table details overall statistics for our loan portfolio at the dates indicated ($ in thousands): March 31, 2021 December 31, 2020 Number of loans 67 67 Principal balance $ 7,051,148 $ 6,728,424 Carrying value, net $ 6,820,074 $ 6,496,977 Unfunded loan commitments (1) $ 1,402,474 $ 1,399,989 Weighted-average cash coupon (2) 5.6 % 5.7 % Weighted-average remaining fully-extended term (3) 2.8 years 2.8 years Weighted-average expected term (4) 2.1 years 2.1 years ——————— (1) Unfunded loan commitments are funded to finance construction costs, tenant improvements, leasing commissions, or carrying costs. 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. For loans placed on non-accrual or cost recovery the interest rate used in calculating weighted-average cash coupon is 0%. (3) Assumes all extension options are exercised. (4) Expected term represents our estimated timing of repayments as of March 31, 2021 and December 31, 2020, respectively. Property Type The table below details the property type of the properties securing the loans in our portfolio at the dates indicated ($ in thousands): March 31, 2021 December 31, 2020 Property Type Carrying % of (1) Carrying % of Portfolio (1) Office $ 1,803,214 26.3 % $ 1,911,145 29.2 % Hotel 1,544,248 22.5 1,576,369 24.1 Residential-for-sale: construction 674,416 9.8 738,035 11.3 Residential-for-sale: inventory 312,063 4.6 244,803 3.7 Urban Retail 787,311 11.5 655,456 10.0 Industrial 414,480 6.0 228,918 3.5 Healthcare 370,717 5.4 369,676 5.7 Urban Predevelopment 52,480 0.8 298,909 4.6 Other 897,580 13.1 511,768 7.9 Total $ 6,856,509 100.0 % $ 6,535,079 100.0 % General CECL Allowance (2) (36,435) (38,102) Carrying value, net $ 6,820,074 $ 6,496,977 ——————— (1) Percentage of portfolio calculations are made prior to consideration of General CECL Allowance. (2) $3.8 million and $3.4 million of the General CECL Allowance for 2021 and 2020, respectively, is excluded from this table because it relates to unfunded commitments and has been recorded as a liability under accounts payable, accrued expenses and other liabilities in our condensed consolidated balance sheet. Geography The table below details the geographic distribution of the properties securing the loans in our portfolio at the dates indicated ($ in thousands): March 31, 2021 December 31, 2020 Geographic Location Carrying % of (1) Carrying % of Portfolio (1) New York City $ 2,398,903 35.0 % $ 2,370,337 36.3 % United Kingdom 1,531,675 22.3 1,263,264 19.3 West 624,435 9.1 749,985 11.5 Southeast 569,104 8.3 581,301 8.9 Midwest 549,469 8.0 552,537 8.5 Northeast 100,813 1.5 103,567 1.6 Other 1,082,110 15.8 914,088 13.9 Total $ 6,856,509 100.0 % $ 6,535,079 100.0 % General CECL Allowance (2) (36,435) (38,102) Carrying value, net $ 6,820,074 $ 6,496,977 ——————— (1) Percentage of portfolio calculations are made prior to consideration of General CECL Allowance. (2) $3.8 million and $3.4 million of the General CECL Allowance for 2021 and 2020, respectively, is excluded from this table because it relates to unfunded commitments and has been recorded as a liability under accounts payable, accrued expenses and other liabilities in our condensed consolidated balance sheet. Risk Rating We assess the risk factors of each loan and assign a risk rating based on a variety of factors, including, without limitation, loan to value ("LTV") ratio, debt yield, property type, geographic and local market dynamics, physical condition, cash flow volatility, leasing and tenant profile, loan structure and exit plan, and project sponsorship. This review is performed quarterly. Based on a 5-point scale, our loans are rated "1" through "5," from less risk to greater risk, which ratings are defined as follows: 1. Very low risk 2. Low risk 3. Moderate/average risk 4. High risk/potential for loss: a loan that has a risk of realizing a principal loss 5. Impaired/loss likely: a loan that has a high risk of realizing principal loss, has incurred principal loss or an impairment has been recorded The following tables allocate the carrying value of our loan portfolio based on our internal risk ratings and date of origination at the dates indicated ($ in thousands): March 31, 2021 Year Originated Risk Rating Number of Loans Total % of Portfolio 2021 2020 2019 2018 2017 Prior 1 — $ — — % $ — $ — $ — $ — $ — $ — 2 1 32,000 0.5 % — — — — — 32,000 3 62 6,420,436 93.6 % 410,664 479,012 2,661,177 1,258,870 917,193 693,520 4 — — — % — — — — — — 5 4 404,073 5.9 % — — — — 151,796 252,277 Total 67 $ 6,856,509 100.0 % $ 410,664 $ 479,012 $ 2,661,177 $ 1,258,870 $ 1,068,989 $ 977,797 General CECL Allowance (36,435) Total carrying value, net $ 6,820,074 Weighted Average Risk Rating 3.1 March 31, 2020 Year Originated Risk Rating Number of Loans Total % of Portfolio 2020 2019 2018 2017 2016 Prior 1 — $ — — % $ — $ — $ — $ — $ — $ — 2 5 130,609 2.0 % — — 23,990 — 36,287 70,332 3 63 5,822,078 89.7 % 423,419 2,609,209 1,490,045 779,882 62,580 456,943 4 — — — % — — — — — — 5 7 536,204 8.3 % — — 31,372 126,013 117,910 260,909 Total 75 $ 6,488,891 100.0 % $ 423,419 $ 2,609,209 $ 1,545,407 $ 905,895 $ 216,777 $ 788,184 General CECL Allowance (58,273) Total carrying value, net $ 6,430,618 Weighted Average Risk Rating 3.1 Current Expected Credit Losses ("CECL") In accordance with ASU 2016-13 "Financial Instruments - Credit Losses (Topic 326) - Measurement of Credit Losses on Financial Instruments" ("ASU 2016-13"), which we refer to as the "CECL Standard," we record allowances for held-to-maturity debt securities that are deducted from the carrying amount of the assets to preset the net carrying value of the amounts expected to be collected on the assets. We record loan specific allowances as a practical expedient under the CECL Standard ("Specific CECL Allowance"), which we apply to assets that are collateral dependent and where the borrower or sponsor is experiencing financial difficulty. For the remainder of the portfolio, we record a general allowance ("General CECL Allowance", and together with the Specific CECL Allowance, "CECL Allowances") in accordance with the CECL Standard on a collective basis by assets with similar risk characteristics. We have elected to use the weighted average remaining maturity ("WARM") method in determining a General CECL Allowance for a majority of our portfolio. In the future, we may use other acceptable methods, such as a probability-of-default/loss-given-default method. Specific CECL Allowance For loans where we have deemed the borrower/sponsor to be experiencing financial difficulty, we have elected to apply a practical expedient in accordance with the CECL Standard in which the fair value of the underlying collateral is compared to the amortized cost of the loan in determining a Specific CECL Allowance. The Specific CECL Allowance is determined as the difference between the fair value of the underlying collateral and the carrying value of the loan (prior to the Specific CECL Allowance). When the repayment or satisfaction of a loan is dependent on a sale, rather than operations, of the collateral, the fair value is adjusted for the estimated cost to sell the collateral. The fair value of the underlying collateral is determined by using method(s) such as discounted cash flow, the market approach, or direct capitalization approach. The key unobservable inputs used to determine the fair value of the underlying collateral may vary depending on the information available to us and market conditions as of the valuation date. We regularly evaluate the extent and impact of any credit migration 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 liquidation value of the underlying collateral. 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 impairment 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. The following table summarizes the loans with Specific CECL Allowances that have been recorded on our portfolio as of March 31, 2021 ($ in thousands): Type Property type Location Amortized cost (1) Interest recognition status/ as of date Mortgage Urban Predevelopment (2) Brooklyn, NY $ 151,796 Cost Recovery/ 3/1/2020 Urban Predevelopment (2)(3) Miami, FL 118,136 Cost Recovery/ 3/1/2020 Retail Center (4)(5) Cincinnati, OH 105,881 Cost Recovery/ 10/1/2019 Mortgage total: $ 375,813 Mezzanine Hotel (6) Washington, DC $ 28,261 Cost Recovery/ 3/31/2020 Mezzanine total: $ 28,261 Grand total: $ 404,074 ——————— (1) Amortized cost is shown net of $175.0 million of Specific CECL Allowance, of which $125.0 million was recorded during the three months ending March 31, 2020. Additionally during the three months ended March 31, 2020 there was $25.0 million of Specific CECL Allowances taken, all of which were subsequently realized during 2020 due to either payoff or restructuring on the provisioned loans. There was no Specific CECL Allowance recorded during the three months ending March 31, 2021. (2) The fair value of urban predevelopment collateral was deter mined by assuming rent per square foot ranging from $45 to $215 and a capitalization rate ranging from 5.0% to 5.5%. (3) In October 2020, we entered into a joint venture which owns the underlying properties that secure our $180.5 million first mortgage loan. The entity in which we own an interest, and which owns the underlying properties was deemed to be a VIE and we determined that we are not the primary beneficiary of that VIE. The related profit and loss from the joint venture was immaterial for the three months ended March 31, 2021. (4) The fair value of retail collateral was determined by applying a capitalization rate of 8.3%. (5) The entity in which we own an interest and which owns the underlying property was deemed to be a VIE and we determined that we are not the primary beneficiary of that VIE. As of March 31, 2020 we had recorded $67.0 million of Specific CECL Allowance. During the three months ended March 31, 2021 and 2020, $0.3 million and $0.6 million, respectively, of interest paid was applied towards reducing the carrying value of the loan. (6) The fair value of hotel collateral was determined by applying a discount rate of 8.5% and a capitalization rate of 7.0%. During the three months ended March 31, 2021 and 2020, there was no interest applied towards reducing the carrying value of the loan. General CECL Allowance In determining the General CECL Allowance using the WARM method, an annual historical loss rate, adjusted for macroeconomic estimates, is applied to the amortized cost of an asset, or pool of assets, over each subsequent period for the assets' remaining expected life. We considered various factors including (i) historical loss experience in the commercial real estate lending market, (ii) timing of expected repayments and satisfactions, (iii) expected future funding, (iv) capital subordinate to us when we are the senior lender, (v) capital senior to us when we are the subordinate lender, and (vi) our current and future view of the macroeconomic environment for a reasonable and supportable forecast period. The CECL Standard requires the use of significant judgment to arrive at an estimated credit loss. There is significant uncertainty related to future macroeconomic conditions as the result of COVID-19. We derived an annual historical loss rate based on a commercial mortgage backed securities ("CMBS") database with historical losses from 1998 through the first quarter of 2021 provided by a third party, Trepp LLC. We applied various filters to arrive at a CMBS dataset most analogous to our current portfolio from which to determine an appropriate historical loss rate. The annual historical loss rate was further adjusted to reflect our expectations of the macroeconomic environment for a reasonable and supportable forecast period which we have determined to be one year. In assessing the macroeconomic environment, we consider macroeconomic factors, including unemployment rate, commercial real estate prices, and market liquidity. We compared the historical data for each metric to historical commercial real estate losses in order to determine the correlation of the data. We used projections, obtained from third-party service providers, of each factor to approximate the impact the macroeconomic outlook may have on our loss rate. The General CECL Allowance on subordinate loans is calculated by incorporating both the loan balance of the position(s) of the structurally senior third-party lender(s) and the balance of our subordinate loan(s). The subordinate loans, by virtue of being the first loss position, are required to absorb losses prior to the senior position(s) being impacted, resulting in a higher percentage allowance attributable to the subordinate loan. The General CECL Allowance on unfunded loan commitments is time-weighted based on our expected commitment to fund such obligations. The General CECL Allowance on unfunded commitments is recorded as a liability on our condensed consolidated balance sheet within accounts payable, accrued expenses and other liabilities. Although our secured debt obligations and senior secured term loan financing have a minimum tangible net worth maintenance covenant, the General CECL Allowance has no impact on these covenants as we are permitted to add back the General CECL Allowance for the computation of tangible net worth as defined in the respective agreements. The following schedule sets out our General CECL Allowance as of March 31, 2021 and December 31, 2020 ($ in thousands): March 31, 2021 December 31, 2020 Commercial mortgage loans, net $ 18,210 $ 17,012 Subordinate loans and other lending assets, net 18,225 21,090 Unfunded commitments (1) 3,794 3,365 Total General CECL Allowance $ 40,229 $ 41,467 ——————— (1) The General CECL Allowance on unfunded commitments is recorded as a liability on our condensed consolidated balance sheet within accounts payable, accrued expenses and other liabilities We have made an accounting policy election to exclude $37.6 million accrued interest receivable, included in Other Assets on our condensed consolidated balance sheet, from the amortized cost basis of the related commercial mortgage loans and subordinate loans and other lending assets in determining the General CECL Allowance as any uncollectible accrued interest receivable is written off in a timely manner. We discontinue accruing interest on loans if we deem the interest to be uncollectible with any previously accrued uncollected interest on the loan charged to interest income in the same period. Under certain circumstances, we may apply the cost recovery method under which interest collected on a loan reduces the loan's amortized cost. The amortized cost basis for loans on cost recovery was $404.1 million and $373.5 million as of March 31, 2021 and December 31, 2020 , respectively. For the three months ended March 31, 2021 and 2020 , we received $0.3 million and $1.8 million, respectively, in interest that reduced amortized cost under the cost recovery method. In November 2020, the borrower under a £309.2 million commercial mortgage loan ( $422.7 million assuming conversion into U.S. Dollars ("USD")), of which we own £247.5 million ($338.4 million assuming conversion into USD), secured by an urban retail property located in London, United Kingdom, entered into administration triggering an event of default. In accordance with the loan agreement, we are entitled to collect default interest in addition to the contractual interest we had been earning. We evaluated the loan for collectability and determined that, as of March 31, 2021, no Specific CECL Allowance was warranted and have continued to accrue all interest owed to us, including default interest. As of March 31, 2021, the loan had an amortized cost basis of £255.2 million ($351.7 million assuming conversion into USD). Accrued interest is past due 90 or more days for loans with an amortized cost basis of $774.8 million as of March 31, 2021. As of December 31, 2020, the amortized cost basis for loans with interest between 30 and 59 days past due was $19.0 million and the amortized cost basis for loans with 90 or more days past due was $711.9 million. The following schedule illustrates the quarterly changes in CECL Allowances f or the three months ended March 31, 2021 and 2020, respectively ($ in thousands): Specific CECL Allowance General CECL Allowance Total CECL Allowance CECL Allowance as % of Amortized Cost Funded Unfunded Total General Total December 31, 2020 $ 175,000 $ 38,102 $ 3,365 $ 41,467 $ 216,467 0.67 % 3.23 % Changes: Q1 Allowance (Reversals) — (1,667) 429 (1,238) (1,238) March 31, 2021 $ 175,000 $ 36,435 $ 3,794 $ 40,229 $ 215,229 0.62 % 3.06 % Specific CECL Allowance (1) General CECL Allowance Total CECL Allowance CECL Allowance as % of Amortized Cost Funded Unfunded Total General Total December 31, 2019 $ 56,981 $ — $ — $ — $ 56,981 — % — % Changes: January 1, 2020 - Adoption of CECL Standard — 27,779 3,088 30,867 30,867 Q1 Allowances 150,000 30,494 2,971 33,465 183,465 March 31, 2020 $ 206,981 $ 58,273 $ 6,059 $ 64,332 $ 271,313 1.08 % 4.05 % ——————— (1) As of December 31, 2019, amount represents specific loan loss provisions recorded on assets before the adoption of the CECL Standard. After the adoption of the CECL Standard on January 1, 2020, amounts represent Specific CECL Allowances. The General CECL Allowance decreased by $1.2 million during the three months ended March 31, 2021. The decrease is primarily related to the seasoning of our loan portfolio and acceleration of expected repayments, which were partially offset by General CECL Allowances associated with new loan originations. Other Loan and Lending Assets Activity We recognized payment-in-kind ("PIK") interest of $16.8 million and $12.4 million for the three months ended March 31, 2021 and 2020, respectively. We did not recognize pre-payment penalties and accelerated fees for the three months ended March 31, 2021. We recognized $0.2 million in pre-payment penalties and accelerated fees for the three months ended March 31, 2020. 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 $68.1 million as of March 31, 2021. These interests have a weighted average maturity of 5.6 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 carrying value on our condensed consolidated balance sheet. Loan Sales In the first quarter of 2020, we sold £62.2 million ($81.3 million assuming conversion into USD) in a mezzanine loan and £50.0 million ($65.3 million assuming conversion into USD) unfunded commitment of a senior mortgage secured by a mixed-use property in London, United Kingdom to a fund managed by an affiliate of the Manager, that was originated by us in December 2019. This transaction was evaluated under ASC 860 - "Transfers and Servicing, " and we determined that it qualified as a sale and accounted for it as such. We recorded no gain or loss related to this sale. |
Real Estate Owned and Related D
Real Estate Owned and Related Debt, Held for Sale | 3 Months Ended |
Mar. 31, 2021 | |
Real Estate [Abstract] | |
Real Estate Owned and Related Debt, Held for Sale | Real Estate Owned and Related Debt, Held for Sale In 2017, we originated a subordinate loan junior to a $33.0 million third-party mortgage, secured by a hotel in Anaheim, CA. In December 2020, due to non-performance, we assumed legal title through the execution of a deed-in-lieu. We intend to sell the hotel and, as such, as of the date of the foreclosure, we recorded the hotel property on our condensed consolidated balance sheet at its fair market value. We assumed the obligation of the $33.0 million first mortgage which is classified as debt related to real estate owned, held for sale in our condensed consolidated balance sheet. As of March 31, 2021 there was an increase in our expected costs to sell the property and we performed a non-recurring fair value measurement. Based upon this measurement, we recorded a $0.6 million impairment during the three months ended March 31, 2021, as realized losses and impairments on real estate owned in our condensed consolidated statement of operations. The table below details real estate owned and related debt, held for sale, on our condensed consolidated balance sheet ($ in thousands): March 31, 2021 December 31, 2020 Real estate owned, held for sale, gross $ 42,905 $ 42,905 Impairment on real estate owned, held for sale (550) — Real Estate owned, held for sale, net of impairment 42,355 42,905 Debt related to real estate owned, held for sale (33,000) (33,000) Real estate owned, net $ 9,355 $ 9,905 |
Other Assets
Other Assets | 3 Months Ended |
Mar. 31, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets | Other AssetsThe following table details the components of our other assets at the dates indicated ($ in thousands): March 31, 2021 December 31, 2020 Interest receivable $ 37,646 $ 40,559 Collateral deposited under derivative agreements 27,890 28,320 Loan proceeds held by servicer 1,750 5,649 Other 1,596 112 Total $ 68,882 $ 74,640 |
Secured Debt Arrangements, Net
Secured Debt Arrangements, Net | 3 Months Ended |
Mar. 31, 2021 | |
Debt Instrument [Line Items] | |
Secured Debt Arrangement, Net and Senior Secured Term Loans, Net | Participations Sold Participations sold represents the subordinate interests in loans we originated and subsequently partially sold. We account for participations sold as secured borrowings on our condensed consolidated balance sheet with both assets and non-recourse liabilities because the participations do not qualify as a sale under ASC 860 - "Transfers and Servicing." The income earned on the participations sold is recorded as interest income and an identical amount is recorded as interest expense on our condensed consolidated statements of operations. In October 2020, we sold a $25.0 million interest, at par, in a mezzanine loan collateralized by a ground-up condominium development in New York City that we originated in December 2017. The participation interest sold is subordinate to our remaining $88.5 million mezzanine loan and is accounted for as a secured borrowing on our condensed consolidated balance sheet. The participation sold accrues payment-in-kind interest. In December 2020, we sold a £6.7 million ($8.9 million assuming conversion into USD) interest, at par, in a first mortgage loan collateralized by an office building located in London, United Kingdom that was originated by us in December 2017. In connection with this sale, we transferred our remaining unfunded commitment of £19.1 million ($25.3 million assuming conversion into USD). The participation interest sold is subordinate to our remaining £70.5 million ($97.1 million assuming conversion into USD) first mortgage loan and is accounted for as a secured borrowing on our condensed consolidated balance sheet. The table below details participations sold included in our condensed consolidated balance sheet ($ in thousands): March 31, 2021 December 31, 2020 Participation sold on Commercial mortgage loans $ 23,974 $ 9,217 Participation sold on Subordinate loans and other lending assets (1) 26,735 25,757 Total Participations sold $ 50,709 $ 34,974 ——————— (1) Includes $1.0 million and $0.8 million of PIK interest in 2021 and 2020, respectively. |
Senior Notes | |
Debt Instrument [Line Items] | |
Secured Debt Arrangement, Net and Senior Secured Term Loans, Net | Secured Debt Arrangements, Net At March 31, 2021 and December 31, 2020, our borrowings included the following secured debt arrangements, maturities and weighted-average interest rates ($ in thousands): March 31, 2021 December 31, 2020 Maximum Amount of Borrowings (1) Borrowings Outstanding (1) Maturity (2) Maximum Amount of Borrowings (1) Borrowings Outstanding (1) Maturity (2) JPMorgan (USD) $ 1,115,133 $ 911,539 June 2024 $ 1,113,156 $ 984,125 June 2024 JPMorgan (GBP) 114,487 114,487 June 2024 113,548 113,548 June 2024 JPMorgan (EUR) 70,380 70,380 June 2024 73,296 73,296 June 2024 DB (USD) 700,000 425,803 March 2023 1,000,000 520,457 March 2023 Goldman (USD) 500,000 322,217 November 2023 (3) 500,000 332,352 November 2023 (3) CS Facility - USD 230,205 220,193 December 2023 (4)(5) 374,251 369,182 December 2023 (4)(5) HSBC Facility - EUR 157,270 157,270 July 2022 163,785 163,785 July 2021 Barclays (USD) 200,000 35,192 March 2024 200,000 35,192 March 2024 Total Secured Credit Facilities 3,087,475 2,257,081 3,538,036 2,591,937 Barclays Private Securitization 1,173,298 1,173,298 December 2023 (5) 857,728 857,728 September 2023 (5) Total Secured Debt Arrangements 4,260,773 3,430,379 4,395,764 3,449,665 Less: deferred financing costs N/A (11,800) N/A (12,993) Total Secured Debt Arrangements, net (6)(7)(8) $ 4,260,773 $ 3,418,579 $ 4,395,764 $ 3,436,672 ——————— (1) As of March 31, 2021, British Pound Sterling ("GBP"), Euros ("EUR"), and Swedish Krona ("SEK") borrowings were converted to USD at a rate o f 1.38, 1.17, and 0.11, respectively. As of December 31, 2020, GBP and EUR borrowings were converted to USD at a rate of 1.37 and 1.22, respectively. (2) Maturity date assumes extensions at our option are exercised with consent of financing providers, where applicable. (3) Assumes facility enters the amortization period described below. (4) Assumes financings are extended in line with the underlying loans. (5) Represents weighted average maturity across various financings with the counterparty. See below for additional details. (6) Weighted-average borrowing costs as of March 31, 2021 and 2020 were USD L+2.14% / GBP L+2.03% / EUR L+1.46% / SEK L+1.50% and USD L+2.16% / GBP L+1.83% / EUR L+1.46%, respectively. (7) Weighted average advance rates based on cost as of March 31, 2021 and 2020 were 64.5% (62.2% (USD) / 69.0% (GBP) / 60.6% (EUR) / 80.8% (SEK)) and 63.7% (62.5% (USD) / 68.7% (GBP) / 60.8% (EUR)). (8) As of March 31, 2021 and December 31, 2020, approximately 53% and 55% of the outstanding balance under these secured borrowings were recourse to us. Each of our existing secured debt arrangements include "credit based and other mark-to-market" features. "Credit mark-to-market" provisions in repurchase facilities are designed to keep the lenders' credit exposure generally constant as a percentage of the underlying collateral value of the assets pledged as security to them. If the credit of the underlying collateral value decreases, the amount of leverage available to us will be reduced as our assets are marked-to-market, which would reduce our liquidity. Generally, the lender under the applicable secured debt arrangement calls for and/or sets the valuation and any revaluation of the collateral assets in its sole, good faith discretion. If it is determined (subject to certain conditions) that the market value of the underlying collateral has decreased by more than a defined minimum amount, the lender may require us to provide additional collateral or may make margin calls, which may require us to repay all or a portion of the funds advanced. We closely monitor our liquidity and intend to maintain sufficient liquidity on our condensed consolidated balance sheet in order to meet any margin calls in the event of any significant decreases in asset values. As of March 31, 2021 and December 31, 2020, t he weighted average haircut under our secured debt arrangements was approximately 35.5% and 36.3%, respectively. In addition, our existing secured debt arrangements are not entirely term-matched financings and may mature before our commercial real estate debt investments that represent underlying collateral to those financings. We are in frequent dialogue with the lenders under our secured debt arrangements regarding our management of their collateral assets and as we negotiate renewals and extensions of these liabilities, we may experience lower advance rates and higher pricing under the renewed or extended agreements . JPMorgan Facility In November 2019, through three indirect wholly-owned subsidiaries, we entered into a Sixth Amended and Restated Master Repurchase Agreement with JPMorgan Chase Bank, National Association (the "JPMorgan Facility"). The JPMorgan Facility allows for $1.3 billion of maximum borrowings (with amounts borrowed in GBP and EUR converted to USD for purposes of calculating availability based on the greater of the spot rate as of the initial financing under the corresponding mortgage loan and the then-current spot rate) and matures in June 2022 and has two one-year extensions available at our option, which are subject to certain conditions. The JPMorgan Facility enables us to elect to receive advances in USD, GBP, or EUR. Margin calls may occur any time at specified aggregate margin deficit thresholds. As of March 31, 2021, we had $1.1 billion (including £83.1 million and €60.0 million assuming conversion into USD) of borrowings outstanding under the JPMorgan Facility secured by certain of our commercial mortgage loans. DB Facility In March 2020, through an indirect wholly-owned subsidiary, we entered into a Third Amended and Restated Master Repurchase Agreement with Deutsche Bank AG, Cayman Islands Branch, London Branch (the "DB Facility"). During the first quarter 2021, we amended the DB Facility to reduce the commitment from $1.0 billion to $700.0 million ($425.8 million drawn at March 31, 2021 ) fo r 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 DB Facility matures in March 2022, and has a one-year extension available at our option, subject to certain conditions. Margin calls may occur any time at specified aggregate margin deficit thresholds. As of March 31, 2021, we had $425.8 million of borrowings outstanding under the DB 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 provides advances up to $500.0 million and matures in November 2021. In addition, the Goldman Facility contains a two-year amortization period subsequent to the November 2021 maturity, which allows for the refinancing or pay down of assets under the facility. Margin calls may occur any time at specified margin deficit thresholds. As of March 31, 2021, we had $322.2 million of borrowings outstanding under the Goldman Facility secured by certain of our commercial mortgage loans. 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" has an "evergreen" feature such that the facility continues unless terminated at any time by Credit Suisse with six months' notice. Margin calls may occur any time at specified aggregate margin deficit thresholds. As of March 31, 2021, we had $220.2 million of borrowings outstanding under the CS Facility — USD secured by certain 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, which provides for a single asset financing (the "HSBC Facility — EUR"). The HSBC Facility — EUR was extended during the three months ended March 31, 2021 and matures in July 2022. M argin calls may occur any time at specified aggregate margin deficit thresholds. As of March 31, 2021, we had $157.3 million (€134.1 million assuming conversion into USD) of borrowings outstanding under the HSBC Facility - EUR secured by one commercial mortgage loan. Barclays Facility - USD In March 2020, through an indirect wholly-owned subsidiary, we entered into a secured debt arrangement pursuant to a Master Repurchase Agreement with Barclays Bank plc (the "Barclays Facility – USD"). The Barclays Facility — USD allows for $200.0 million of maximum borrowings and initially matures in March 2023 with extensions available at our option, subject to certain conditions. Margin calls may occur any time at specified aggregate margin deficit thresholds. As of March 31, 2021, we had $35.2 million of borrowings outstanding under the Barclays Facility - USD secured by one commercial mortgage loan. Barclays Private Securitization In June 2020, through a newly formed entity, we entered into a private securitization with Barclays Bank plc, of which Barclays Bank plc retained $782.0 million of senior notes (the "Barclays Private Securitization"). The Barclays Private Securitization finances the loans that were previously financed under a Global Master Repurchase Agreement with Barclays Bank plc (the "Barclays Facility - GBP/EUR"). In June 2020, we pledged an additional commercial mortgage loan with an outstanding principal balance of £26.0 million and pledged additional collateral of a financed loan of €5.3 million as of June 30, 2020. During the quarter ended March 31, 2021 , we pledged two additional commercial mortgage loans with outstanding principal balances of $227.4 million (£165.0 million assuming conversion into USD) and $187.4 million (kr1.6 billion assuming conversion into USD) as of March 31, 2021. The Barclays Private Securitization eliminates daily margining provisions and grants us significant discretion to modify certain terms of the underlying collateral including waiving certain loan-level covenant breaches and deferring or waiving of debt service payments for up to 18 months. The securitization includes LTV based covenants with significant headroom to previous levels included in the Barclays Facility - GBP/EUR. These deleveraging requirements are based on significant declines in the value of the collateral as determined by an annual third-party (engaged by us) appraisal process tied to the provisions of the underlying loan agreements. We believe this provides us with both cushion and predictability to avoid sudden unexpected outcomes and material repayment requirements. In addition to the pledge of the additional collateral noted above, we paid down the previous financing by €16.5 million (totaling $18.5 million in USD) and agreed to increase the financing spreads by 0.25%. The table below provides the borrowings outstanding (on an as converted basis) and weighted-average fully-extended maturities by currency for the assets financed under the Barclays Private Securitization as of March 31, 2021 ($ in thousands): Borrowings outstanding Fully-Extended Maturity (1) Total/Weighted-Average GBP $879,815 July 2024 Total/Weighted-Average SEK 149,883 March 2022 Total/Weighted-Average EUR 143,600 February 2022 (2) Total/Weighted-Average Securitization $1,173,298 December 2023 ——————— (1) Assumes underlying loans extend to fully extended maturity and extensions at our option are exercised. (2) The EUR portion of the Barclays Private Securitization has an "evergreen" feature such that the facility continues for one year and can be terminated by either party on certain dates with, depending on the date of notice, a minimum of nine to twelve months' notice. The table below provides the assets and liabilities of the Barclays Private Securitization VIE included in our condensed consolidated balance sheet ($ in thousands): March 31, 2021 December 31, 2020 Assets: Cash $ 2,572 $ 2,020 Commercial mortgage loans, net (1) 1,712,897 1,290,393 Other Assets 6,837 15,831 Total Assets $ 1,722,306 $ 1,308,244 Liabilities: Secured debt arrangements, net (net of deferred financing costs of $2.3 million and $0.7 million in 2021 and 2020, respectively) $ 1,171,036 $ 857,043 Accounts payable, accrued expenses and other liabilities (2) 2,310 1,307 Total Liabilities $ 1,173,346 $ 858,350 ——————— (1) Net of the General CECL Allowance of $7.4 million and $4.4 million as of March 31, 2021 and December 31, 2020, respectively. (2) Represents General CECL Allowance related to unfunded commitments on commercial mortgage loans, net of $1.2 million and $0.3 million as of March 31, 2021 and December 31, 2020, respectively. The table below provides the net income of the Barclays Private Securitization VIE included in our condensed consolidated statement of operations ($ in thousands): Three months ended March 31, 2021 Net Interest Income: Interest income from commercial mortgage loans $ 16,093 Interest expense (4,590) Net interest income $ 11,503 General and administrative expense (1) Provision for loan losses and impairments (3,628) Foreign currency gain (912) Net Income $ 6,962 As of March 31, 2021, we had $1.2 billion (£638.3 million, €122.4 million, and kr1.3 billion assuming conversion into USD) of borrowings outstanding under the Barclays Private Securitization secured by certain of our commercial mortgage loans. At March 31, 2021, our borrowings had the following remaining maturities ($ in thousands): Less than 1 to 3 3 to 5 More than Total JPMorgan Facility $ 96,740 $ 381,359 $ 618,307 $ — $ 1,096,406 DB Facility — 425,803 — — 425,803 Goldman Facility 322,217 — — — 322,217 CS Facility - USD 42,205 40,500 137,488 — 220,193 HSBC Facility - EUR — 157,270 — — 157,270 Barclays Facility - USD — 35,192 — — 35,192 Barclays Private Securitization 293,483 549,109 330,706 — 1,173,298 Total $ 754,645 $ 1,589,233 $ 1,086,501 $ — $ 3,430,379 The table above reflects the fully extended maturity date of the facility and assumes facilities with an "evergreen" feature continue to extend through the fully-extended maturity of the underlying asset and assumes underlying loans are extended with consent of financing providers. The table below summarizes the outstanding balances at March 31, 2021, as well as the maximum and average month-end balances for the three months ended March 31, 2021 for our borrowings under secured debt arrangements ($ in thousands). As of March 31, 2021 For the three months ended March 31, 2021 Balance Amortized Cost of Collateral Maximum Month-End Average Month-End JPMorgan Facility $ 1,096,406 $ 1,855,536 $ 1,172,308 $ 1,146,506 DB Facility 425,803 658,672 520,217 488,746 Goldman Facility 322,217 501,146 331,154 327,536 CS Facility - USD 220,193 331,053 369,182 318,853 HSBC Facility - EUR 157,270 207,182 162,715 160,628 Barclays Facility - USD 35,192 50,057 35,193 35,193 Barclays Private Securitization 1,173,298 1,715,975 1,173,298 1,023,076 Total $ 3,430,379 $ 5,319,621 The table below summarizes the outstanding balances at December 31, 2020, as well as the maximum and average month-end balances for the year ended December 31, 2020 for our borrowings under secured debt arrangements ($ in thousands). As of December 31, 2020 For the year ended December 31, 2020 Balance Amortized Cost of Collateral Maximum Month-End Average Month-End JPMorgan Facility $ 1,170,969 $ 2,009,249 $ 1,192,288 $ 1,119,997 DB Facility 520,457 814,715 526,743 506,831 Goldman Facility 332,352 510,371 362,139 343,621 CS Facility - USD 369,182 524,139 378,781 348,464 CS Facility - GBP — — 90,111 43,094 HSBC Facility - USD — — 50,625 44,000 HSBC Facility - GBP — — 34,500 20,563 HSBC Facility - EUR 163,785 215,509 163,788 154,725 Barclays Facility - USD 35,192 49,993 35,193 29,327 Barclays Facility - GBP — — 666,810 260,692 Barclays Facility - EUR — — 180,595 70,521 Barclays Private Securitization 857,728 1,295,023 857,728 823,915 Total $ 3,449,665 $ 5,418,999 We were in compliance with the covenants under each of our secured debt arrangements at March 31, 2021 and December 31, 2020. |
Senior Secured Term Loan, Net
Senior Secured Term Loan, Net | 3 Months Ended |
Mar. 31, 2021 | |
Debt Instrument [Line Items] | |
Secured Debt Arrangement, Net and Senior Secured Term Loans, Net | Participations Sold Participations sold represents the subordinate interests in loans we originated and subsequently partially sold. We account for participations sold as secured borrowings on our condensed consolidated balance sheet with both assets and non-recourse liabilities because the participations do not qualify as a sale under ASC 860 - "Transfers and Servicing." The income earned on the participations sold is recorded as interest income and an identical amount is recorded as interest expense on our condensed consolidated statements of operations. In October 2020, we sold a $25.0 million interest, at par, in a mezzanine loan collateralized by a ground-up condominium development in New York City that we originated in December 2017. The participation interest sold is subordinate to our remaining $88.5 million mezzanine loan and is accounted for as a secured borrowing on our condensed consolidated balance sheet. The participation sold accrues payment-in-kind interest. In December 2020, we sold a £6.7 million ($8.9 million assuming conversion into USD) interest, at par, in a first mortgage loan collateralized by an office building located in London, United Kingdom that was originated by us in December 2017. In connection with this sale, we transferred our remaining unfunded commitment of £19.1 million ($25.3 million assuming conversion into USD). The participation interest sold is subordinate to our remaining £70.5 million ($97.1 million assuming conversion into USD) first mortgage loan and is accounted for as a secured borrowing on our condensed consolidated balance sheet. The table below details participations sold included in our condensed consolidated balance sheet ($ in thousands): March 31, 2021 December 31, 2020 Participation sold on Commercial mortgage loans $ 23,974 $ 9,217 Participation sold on Subordinate loans and other lending assets (1) 26,735 25,757 Total Participations sold $ 50,709 $ 34,974 ——————— (1) Includes $1.0 million and $0.8 million of PIK interest in 2021 and 2020, respectively. |
Senior Debt | |
Debt Instrument [Line Items] | |
Secured Debt Arrangement, Net and Senior Secured Term Loans, Net | Senior Secured Term Loans, Net In May 2019, we entered into a $500.0 million senior secured term loan (the "2026 Term Loan"), which matures in May 2026 and contains restrictions relating to liens, asset sales, indebtedness, and investments in non-wholly owned entities. The 2026 Term Loan bears interest at LIBOR plus 2.75% and was issued at a price of 99.5%. In March 2021, we entered into an additional $300.0 million in senior secured term loan with substantially the same terms as the 2026 Term Loan (the "2028 Term Loan" and, together with the 2026 Term Loan, the "Term Loans"), which matures in March 2028 and contains restrictions relating to liens, asset sales, indebtedness, and investments in non-wholly owned entities. The 2028 Term Loan bears interest at LIBOR (with a floor of 0.50%) plus 3.50% and was issued at a price of 99.0%. During each of the three months ended March 31, 2021 and 2020, we repaid $1.3 million of principal related to the 2026 Term Loan. The following table summarizes the terms of our Term Loans as of March 31, 2021 ($ in thousands): Principal Amount Unamortized Issuance Discount Deferred Financing Costs Carrying Value Spread Maturity Date 2026 Term Loan $ 491,250 $ (1,816) $ (6,703) $ 482,731 2.75 % 5/15/2026 2028 Term Loan 300,000 (2,964) (3,793) 293,243 3.50 % 3/11/2028 Total $ 791,250 $ (4,780) $ (10,496) $ 775,974 The following table summarizes the terms of our Term Loans as of December 31, 2020 ($ in thousands): Principal Amount Unamortized Issuance Discount Deferred Financing Costs Carrying Value Spread Maturity Date 2026 Term Loan $ 492,500 $ (1,905) $ (7,130) $ 483,465 2.75 % 5/15/2026 Covenants The Term Loans include the following financial covenants: (i) our ratio of total 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 Term Loans at March 31, 2021 and December 31, 2020. Interest Rate Swap In connection with the 2026 Term Loan, we previously 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%. During the year ended December 31, 2020 we terminated the interest rate swap and recognized a realized loss of $53.9 million. Interest Rate Cap |
Convertible Senior Notes, Net
Convertible Senior Notes, Net | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Convertible Senior Notes, Net | Convertible Senior Notes, Net 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 March 31, 2021, the 2022 Notes had a carrying value of $341.0 million and an unamortized discount of $4.0 million. During the fourth quarter of 2018, we issued $230.0 million of 5.375% Convertible Senior Notes due 2023 (the "2023 Notes" and, together with the 2022 Notes, the "Notes"), for which we received $223.7 million after deducting the underwriting discount and offering expenses. At March 31, 2021, the 2023 Notes had a carrying value of $225.7 million and an unamortized discount of $4.3 million. The following table summarizes the terms of the Notes as of March 31, 2021 ($ 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 1.40 2023 Notes 230,000 5.38 % 6.16 % 48.7187 10/15/2023 2.54 Total $ 575,000 ——————— (1) Effective rate includes the effect of the adjustment for the conversion option (See footnote (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. We may not redeem the Notes prior to maturity except in limited circumstances. The closing price of our common stock on March 31, 2021 of $13.97 was less than the per share conversion price of the Notes. 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) are 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 our condensed consolidated balance sheet as of March 31, 2021. 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. |
Derivatives
Derivatives | 3 Months Ended |
Mar. 31, 2021 | |
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 (GBP, EUR and SEK) for an agreed upon amount of USD at various dates through May 2026. 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. The following table summarizes our non-designated foreign exchange ("Fx") forwards and our interest rate cap as of March 31, 2021: March 31, 2021 Type of Derivatives Number of Contracts Aggregate Notional Amount (in thousands) Notional Currency Maturity Weighted-Average Years to Maturity Fx contracts - GBP 107 500,901 GBP April 2021 - February 2026 2.12 Fx contracts - EUR 66 237,519 EUR May 2021 - August 2024 2.37 Fx contracts - SEK 20 604,372 SEK August 2021 - May 2026 4.07 Interest rate cap 1 500,000 USD June 2023 2.21 The following table summarizes our non-designated Fx forwards and our interest rate cap as of December 31, 2020: December 31, 2020 Type of Derivatives Number of Contracts Aggregate Notional Amount (in thousands) Notional Currency Maturity Weighted-Average Years to Maturity Fx contracts - GBP 93 428,493 GBP January 2021 - December 2024 2.04 Fx contracts - EUR 69 239,466 EUR February 2021 - August 2024 2.61 Fx contracts - SEK N/A N/A N/A N/A N/A Interest rate cap 1 500,000 USD June 2023 2.49 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 our condensed consolidated statements of operations related to our derivatives for the three months ended March 31, 2021, and 2020 ($ in thousands): Amount of gain (loss) Three months ended March 31, Location of Gain (Loss) Recognized in Income 2021 2020 Forward currency contracts Unrealized gain on derivative instruments $ 10,502 $ 62,436 Forward currency contracts Realized gain (loss) on derivative instruments (702) 8,055 Total $ 9,800 $ 70,491 In connection with our senior secured term loan, in May 2019, we entered into an interest rate swap to fix LIBOR at 2.12% or an all-in interest rate of 4.87%. We used our interest rate swap to manage exposure to variable cash flows on our borrowings under our senior secured term loan. Our interest rate swap allowed us to receive a variable rate cash flow based on LIBOR and pay a fixed rate cash flow, mitigating the impact of this exposure. However during the second quarter of 2020, we terminated our interest rate swap due to a significant decrease in LIBOR and recognized a realized loss on the accompanying condensed consolidated statement of operations. In June 2020, we entered into an interest rate cap for approximately $1.1 million. We use our interest rate cap to manage exposure to variable cash flows on our borrowings under our senior secured term loan by effectively limiting LIBOR from exceeding 0.75%. This effectively limits the maximum all-in coupon on our senior secured term loan to 3.50%. Unrealized gains or losses related to the interest rate swap and cap were recorded net under gain (loss) on interest rate hedging instruments in our condensed consolidated statement of operations. Amount of gain (loss) Three months ended March 31, Location of Gain (Loss) Recognized in Income 2021 2020 Interest rate cap (1) Unrealized gain on interest rate cap $ 357 $ — Interest rate swap (2) Unrealized loss on interest rate swap — (35,548) Total $ 357 $ (35,548) ——————— (1) With a notional amount of $500.0 million and $0, and at March 31, 2021 and 2020, respectively. (2) With a notional amount of $0 and $500.0 million at March 31, 2021 and 2020, respectively. The following tables summarize the gross asset and liability amounts related to our derivatives at March 31, 2021 and December 31, 2020 ($ in thousands): March 31, 2021 December 31, 2020 Gross Gross Net Amounts Gross Amount of Recognized Liabilities Gross Net Amounts of Liabilities Presented in our Condensed Consolidated Balance Sheet Forward currency contracts $ 25,994 $ (5,121) $ 20,873 $ 32,172 $ (797) $ 31,375 Interest rate cap — (491) (491) — (134) (134) Total derivative liabilities $ 25,994 $ (5,612) $ 20,382 $ 32,172 $ (931) $ 31,241 |
Participations Sold
Participations Sold | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Participations Sold | Participations Sold Participations sold represents the subordinate interests in loans we originated and subsequently partially sold. We account for participations sold as secured borrowings on our condensed consolidated balance sheet with both assets and non-recourse liabilities because the participations do not qualify as a sale under ASC 860 - "Transfers and Servicing." The income earned on the participations sold is recorded as interest income and an identical amount is recorded as interest expense on our condensed consolidated statements of operations. In October 2020, we sold a $25.0 million interest, at par, in a mezzanine loan collateralized by a ground-up condominium development in New York City that we originated in December 2017. The participation interest sold is subordinate to our remaining $88.5 million mezzanine loan and is accounted for as a secured borrowing on our condensed consolidated balance sheet. The participation sold accrues payment-in-kind interest. In December 2020, we sold a £6.7 million ($8.9 million assuming conversion into USD) interest, at par, in a first mortgage loan collateralized by an office building located in London, United Kingdom that was originated by us in December 2017. In connection with this sale, we transferred our remaining unfunded commitment of £19.1 million ($25.3 million assuming conversion into USD). The participation interest sold is subordinate to our remaining £70.5 million ($97.1 million assuming conversion into USD) first mortgage loan and is accounted for as a secured borrowing on our condensed consolidated balance sheet. The table below details participations sold included in our condensed consolidated balance sheet ($ in thousands): March 31, 2021 December 31, 2020 Participation sold on Commercial mortgage loans $ 23,974 $ 9,217 Participation sold on Subordinate loans and other lending assets (1) 26,735 25,757 Total Participations sold $ 50,709 $ 34,974 ——————— (1) Includes $1.0 million and $0.8 million of PIK interest in 2021 and 2020, respectively. |
Accounts Payable, Accrued Expen
Accounts Payable, Accrued Expenses and Other Liabilities | 3 Months Ended |
Mar. 31, 2021 | |
Payables and Accruals [Abstract] | |
Accounts Payable, Accrued Expenses and Other Liabilities | Accounts Payable, Accrued Expenses and Other Liabilities The following table details the components of our accounts payable, accrued expense and other liabilities ($ in thousands): March 31, 2021 December 31, 2020 Accrued dividends payable $ 52,615 $ 52,768 Accrued interest payable 13,503 13,979 Accounts payable and other liabilities 4,987 4,775 General CECL Allowance on unfunded commitments (1) 3,794 3,365 Total $ 74,899 $ 74,887 ——————— (1) Refer to Note 4 - Commercial Mortgage, Subordinate Loans and Other Lending Assets, Net for additional disclosure related to the General CECL Allowance on unfunded commitments for the three months ended March 31, 2021 and 2020, respectively. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2021 | |
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 will expire on September 29, 2021, 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 2021, 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 $9.4 million and $10.3 million in base management fees under the Management Agreement for the three months ended March 31, 2021 and 2020, 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 months ended March 31, 2021 and 2020, we paid expenses totaling $0.6 million and $0.7 million, respectively, related to reimbursements for certain expenses paid by the Manager on our behalf under the Management Agreement. Expenses incurred by the Manager and reimbursed by us are reflected in the respective condensed consolidated statement of operations expense category or our condensed consolidated balance sheet based on the nature of the item. Included in payable to related party on our condensed consolidated balance sheet at March 31, 2021 and December 31, 2020 are approximately $9.4 million and $9.6 million, respectively, for base management fees incurred but not yet paid under the Management Agreement. Loans receivable In January 2020, we sold £62.2 million ($81.3 million assuming conversion into USD) in a mezzanine loan and £50.0 million ($65.3 million assuming conversion into USD) unfunded commitment of a senior mortgage secured by a mixed-use property in London, United Kingdom to a fund managed by an affiliate of the Manager, that was originated by us in December 2019. This transaction was evaluated under ASC 860 - "Transfers and Servicing," and we determined that it qualifies as a sale and accounted for as such (see "Note 4 -Commercial Mortgage, Subordinate Loans and Other Lending Assets, Net"). Term Loan |
Share-Based Payments
Share-Based Payments | 3 Months Ended |
Mar. 31, 2021 | |
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 have been or 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 $4.4 million and $4.3 million during the three months ended March 31, 2021 and 2020, respectively, related to restricted stock and RSU vesting. The following table summarizes the grants, vesting and forfeitures of restricted common stock and RSUs during the three months ended March 31, 2021: Type Restricted Stock RSUs Grant Date Fair Value ($ in millions) Outstanding at December 31, 2020 82,235 2,455,853 Granted — — Vested — — N/A Forfeiture — (35,016) N/A Outstanding at March 31, 2021 82,235 2,420,837 Below is a summary of restricted stock and RSU vesting dates as of March 31, 2021 : Vesting Year Restricted Stock RSU Total Awards 2021 82,235 1,140,572 1,222,807 2022 — 824,066 824,066 2023 — 456,199 456,199 Total 82,235 2,420,837 2,503,072 At March 31, 2021, we had unrecognized compensation expense of approxima tely $29.8 million related to the vesting of RSUs noted in the table above. There is no unrecognized compensation expense related to the vesting of restricted stock awards noted in the table above. RSU Deliveries During the three months ended March 31, 2021 and 2020, we delivered 553,008 and 503,251 shares of common stock for 953,397 and 868,157 vested RSUs, respectively. We allow RSU participants to settle their tax liabilities with a reduction of their share delivery from the ori ginally 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 our condensed consolidated statement of changes in stockholders' equity. The adj ustment was $4.4 million and $6.5 million for the three months ended March 31, 2021 and 2020, respectively. The adjustment is a reduction of capita |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ EquityOur authorized capital stock consists of 450,000,000 shares of common stock, $0.01 par value per share and 50,000,000 shares of preferred stock, $0.01 par value per share. As of March 31, 2021, 139,848,875 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. Dividends. The following table details our dividend activity: Three months ended Dividends declared per share of: March 31, 2021 March 31, 2020 Common Stock $0.35 $0.40 Series B Preferred Stock 0.50 0.50 Common Stock Repurchases. As of March 31, 2021 there was $172.2 million remaining authorized under our stock repurchase program. The following table details our common stock repurchase activity during the three months ended March 31, 2021 and 2020: Three months ended March 31, 2021 March 31, 2020 Shares Repurchased — 300,000 Weighted Average Price — $8.11 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2021 | |
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 "Apollo Action"). The complaint names as defendants (i) a wholly owned subsidiary of the Company ("Subsidiary"), (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 alleged 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 alleged the loss of a $70.0 million investment as part of total damages of $700.0 million, which included punitive damages. The defendants' motion to dismiss was granted on October 23, 2019 and the Court entered judgment dismissing the complaint in its entirety on November 8, 2019. Plaintiffs filed a timely notice of appeal on December 6, 2019 and the parties fully briefed the appeal. In April 2021, Plaintiffs filed a motion for leave to amend the complaint in a separate action, 111 West 57th Investment LLC v. 111W57 Mezz Investor LLC (No. 655031/2017) in New York Supreme Court (the "April 2021 Action"). The April 2021 Action concerns the same condominium development project as the Apollo Action, and Plaintiffs now seek to name Apollo Global Management, Inc., the Company, and certain funds managed by Apollo as defendants. Plaintiffs then requested to withdraw the pending appeal in the Apollo Action and Apollo has consented, although the Court has not yet marked the appeal off the calendar. We believe the claims in this action are without merit. Because this action is in the early stages, no reasonable estimate of possible loss, if any, can be made at this time. Loan Commitments. As described in "Note 4 - Commercial Mortgage, Subordinate Loans and Other Lending Assets, Net" at March 31, 2021, we had $1.4 billion of unfunded commitments related to our commercial mortgage and subordinate loans. The timings and amounts of fundings are uncertain as these commitments relate to loans for construction costs, capital expenditures, leasing costs, interest and carry costs, among others. As such, the timings and amounts of future fundings depend on the progress and performance of the underlying assets of our loans. Certain of our lenders are contractually obligated to fund their ratable portion of these loan commitments over time, while other lenders have some degree of discretion over future loan funding obligations. The total unfunded commitment is expected to be funded over the remaining 4.0 years weighted average tenor of these loans. COVID-19. The COVID-19 global pandemic has brought forth uncertainty and disruption to the global economy. The magnitude and duration of the COVID-19 pandemic and its impact on our borrowers and their tenants, cash flows and future results of operations could be significant and will largely depend on future developments, which are highly uncertain and cannot be predicted, including new information which may emerge concerning the severity of the COVID-19 pandemic, the success of actions taken to contain or treat the pandemic, and reactions by consumers, companies, governmental entities and capital markets. The prolonged duration and impact of the COVID-19 pandemic could materially disrupt our business operations and impact our financial performance. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The following table presents the carrying value and estimated fair value of our financial instruments not carried at fair value on our condensed consolidated balance sheet at March 31, 2021 and December 31, 2020 ($ in thousands): March 31, 2021 December 31, 2020 Carrying Estimated Carrying Estimated Cash and cash equivalents $ 294,060 $ 294,060 $ 325,498 $ 325,498 Commercial mortgage loans, net 5,754,258 5,679,416 5,451,084 5,361,948 Subordinate loans and other lending assets, net (1) 1,065,816 1,058,560 1,045,893 1,027,582 Secured debt arrangements, net (3,418,579) (3,418,579) (3,436,672) (3,436,672) Senior secured term loan, net (775,974) (781,767) (483,465) (475,263) 2022 Notes (341,035) (342,764) (340,361) (327,381) 2023 Notes (225,676) (226,870) (225,293) (214,875) Participations sold (50,709) (50,646) (34,974) (34,919) Debt related to real estate owned, held for sale (33,000) (33,000) (33,000) (33,000) ——————— (1) 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 cash equivalents, convertible senior notes, net, secured debt arrangements net and senior secured term loan, net are measured using observable Level I inputs as defined in "Note 3 - Fair Value Disclosure." Estimates of fair value for all other financial instruments in the table above are measured using significant estimates, or unobservable Level III inputs as defined in "Note 3 - Fair Value Disclosure." |
Net Income (Loss) per Share
Net Income (Loss) per Share | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) per Share | Net Income (Loss) per Share ASC 260 "Earnings per share" requires the use of the two-class method of computing earnings per share for all periods presented for each class of common stock and participating security as if all earnings for the period had been distributed. Under the two-class method, during periods of net income, the net income is first reduced for dividends declared on all classes of securities to arrive at undistributed earnings. During periods of net losses, the net loss is reduced for dividends declared on participating securities only if the security has the right to participate in the earnings of the entity and an objectively determinable contractual obligation to share in net losses of the entity. The remaining earnings are allocated to common stockholders and participating securities to the extent that each security shares in earnings as if all of the earnings for the period had been distributed. Each total is then divided by the applicable number of shares to arrive at basic earnings per share. For the diluted earnings, the denominator includes all outstanding shares of common stock and all potential shares of common stock assumed issued if they are dilutive. The numerator is adjusted for any changes in income or loss that would result from the assumed conversion of these potential shares of common stock. The table below presents the computation of basic and diluted net income per share of common stock for the three months ended March 31, 2021 and 2020 ($ in thousands except per share data): For the three months ended March 31, 2021 2020 Basic Earnings Net income (loss) $ 58,335 $ (127,842) Less: Preferred dividends (3,385) (3,385) Net income available to common stockholders $ 54,950 $ (131,227) Less: Dividends on participating securities (847) (802) Basic Earnings $ 54,103 $ (132,029) Diluted Earnings Basic Earnings $ 54,103 $ (132,029) Add: Dividends on participating securities 847 — Add: Interest expense on Notes 8,245 — Diluted Earnings $ 63,195 $ (132,029) Number of Shares: Basic weighted-average shares of common stock outstanding 139,805,863 153,948,191 Diluted weighted-average shares of common stock outstanding 170,792,684 153,948,191 Earnings Per Share Attributable to Common Stockholders Basic $ 0.39 $ (0.86) Diluted $ 0.37 $ (0.86) The dilutive effect to earnings per share 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 months ended March 31, 2021, 28,533,271 weighted-average potentially issuable shares with respect to the Notes were included in the dilutive earnings per share denominator. For the three months ended March 31, 2020, all of the potentially issuable shares with respect to the Notes were excluded from the calculation of diluted net loss per share because the effect was anti-dilutive. Refer to "Note 9 - Convertible Senior Notes, Net" for further discussion. For the three months ended March 31, 2021, 2,005,291 weighted-average unvested RSUs were included in the dilutive earnings per share denominator. For the three months ended March 31, 2020, all of the unvested RSUs were excluded from the calculation of diluted net income per share because the effect was anti-dilutive. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Subsequent to the quarter ended March 31, 2021, the following events took place: Investment activity: We funded approximately $29.6 million for previously closed loans. Loan Repayments: We received approximately $8.9 million from loan repayments. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
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 allowances. 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, 2020 ("Annual Report"), 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 months ended March 31, 2021 are not necessarily indicative of the results to be expected for the full year or any other future period. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In August 2020, the FASB issued ASU 2020-06 "Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity" ("ASU 2020-06"). The intention of ASU 2020-06 is to address the complexities in accounting for certain financial instruments with a debt and equity component. Under ASU 2020-06, the number of accounting models for convertible notes will be reduced and entities that issue convertible debt will be required to use the if-converted method for the computation of diluted "Earnings per share" under ASC 260. ASC 2020-06 is effective for fiscal years beginning after December 15, 2021 and may be adopted through either a modified retrospective method of transition or a fully retrospective method of transition. We are currently assessing the impact this guidance will have on our condensed consolidated financial statements. In March 2020, the FASB issued ASU 2020-04 “Reference Rate Reform (Topic 848) – Facilitation of the Effects of Reference Rate Reform on Financial Reporting” (“ASU 2020-04”). ASU 2020-04 provides optional expedients and exceptions for applying GAAP to debt instruments, derivatives, and other contracts that reference LIBOR or other reference rates expected to be discontinued as a result of reference rate reform. This guidance is optional and may be elected through December 31, 2022 using a prospective application on all eligible contract modifications. We have loan agreements, debt agreements, and an interest rate cap that incorporate LIBOR as a referenced interest rate. It is difficult to predict what effect, if any, the phase-out of LIBOR and the use of alternative benchmarks may have on our business or on the overall financial markets. We have not adopted any of the optional expedients or exceptions through March 31, 2021 , but will continue to evaluate the possible adoption of any such expedients or exceptions. |
Fair Value Disclosure (Tables)
Fair Value Disclosure (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Levels in Fair Value Hierarchy of Financial Instruments | The following table summarizes the levels in the fair value hierarchy into which our assets and liabilities recorded at fair value were categorized as of March 31, 2021 and December 31, 2020 ($ in thousands): Fair Value as of March 31, 2021 Fair Value as of December 31, 2020 Level I Level II Level III Total Level I Level II Level III Total Recurring fair value measurements: Foreign currency forward, net $ — $ (20,873) $ — $ (20,873) $ — $ (31,375) $ — $ (31,375) Interest rate cap asset — 491 — 491 — 134 — 134 Total financial instruments $ — $ (20,382) $ — $ (20,382) $ — $ (31,241) $ — $ (31,241) Non-Recurring fair value measurements: Real estate owned asset, held for sale $ — $ — $ 42,355 $ 42,355 $ — $ — $ 42,905 $ 42,905 Debt related to real estate owned, held for sale — — (33,000) (33,000) — — (33,000) (33,000) Net real estate owned, and related debt, held for sale $ — $ — $ 9,355 $ 9,355 $ — $ — $ 9,905 $ 9,905 |
Commercial Mortgage, Subordin_2
Commercial Mortgage, Subordinate Loans and Other Lending Assets, Net (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Receivables [Abstract] | |
Schedule of Loan Portfolio | Our loan portfolio was comprised of the following at March 31, 2021 and December 31, 2020 ($ in thousands): Loan Type March 31, 2021 December 31, 2020 Commercial mortgage loans, net (1) $ 5,754,258 $ 5,451,084 Subordinate loans and other lending assets, net 1,065,816 1,045,893 Carrying value, net $ 6,820,074 $ 6,496,977 ——————— (1) Includes $140.8 million and $136.1 million in 2021 and 2020, respectively, of contiguous financing structured as subordinate loans. |
Schedule of Activity Related to Loan Investment Portfolio | Activity relating to our loan portfolio, for the three months ended March 31, 2021, was as follows ($ in thousands): Principal Deferred Fees/Other Items (1) Specific CECL Allowance Carrying Value, Net (2) December 31, 2020 $ 6,728,424 $ (18,345) $ (175,000) $ 6,535,079 New loan fundings 417,161 — — 417,161 Add-on loan fundings (3) 133,437 — — 133,437 Loan repayments and sales (232,038) — — (232,038) Gain (loss) on foreign currency translation (17,175) 125 — (17,050) Deferred fees — (6,564) — (6,564) PIK interest and amortization of fees 21,339 5,145 — 26,484 March 31, 2021 $ 7,051,148 $ (19,639) $ (175,000) $ 6,856,509 General CECL Allowance (4) (36,435) Carrying value, net $ 6,820,074 ——————— (1) Other items primarily consist of purchase discounts or premiums, cost recovery interest, exit fees and deferred origination expenses. (2) December 31, 2020 carrying value excludes General CECL Allowance (3) Represents fundings for loans closed prior to 2021. (4) $3.8 million of the General CECL Allowance is excluded from this table because it relates to unfunded commitments and has been recorded as a liability under accounts payable, accrued expenses and other liabilities in our condensed consolidated balance sheet. |
Schedule of Overall Statistics for the Loan Portfolio | The following table details overall statistics for our loan portfolio at the dates indicated ($ in thousands): March 31, 2021 December 31, 2020 Number of loans 67 67 Principal balance $ 7,051,148 $ 6,728,424 Carrying value, net $ 6,820,074 $ 6,496,977 Unfunded loan commitments (1) $ 1,402,474 $ 1,399,989 Weighted-average cash coupon (2) 5.6 % 5.7 % Weighted-average remaining fully-extended term (3) 2.8 years 2.8 years Weighted-average expected term (4) 2.1 years 2.1 years ——————— (1) Unfunded loan commitments are funded to finance construction costs, tenant improvements, leasing commissions, or carrying costs. 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. For loans placed on non-accrual or cost recovery the interest rate used in calculating weighted-average cash coupon is 0%. (3) Assumes all extension options are exercised. (4) Expected term represents our estimated timing of repayments as of March 31, 2021 and December 31, 2020, respectively. |
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): March 31, 2021 December 31, 2020 Property Type Carrying % of (1) Carrying % of Portfolio (1) Office $ 1,803,214 26.3 % $ 1,911,145 29.2 % Hotel 1,544,248 22.5 1,576,369 24.1 Residential-for-sale: construction 674,416 9.8 738,035 11.3 Residential-for-sale: inventory 312,063 4.6 244,803 3.7 Urban Retail 787,311 11.5 655,456 10.0 Industrial 414,480 6.0 228,918 3.5 Healthcare 370,717 5.4 369,676 5.7 Urban Predevelopment 52,480 0.8 298,909 4.6 Other 897,580 13.1 511,768 7.9 Total $ 6,856,509 100.0 % $ 6,535,079 100.0 % General CECL Allowance (2) (36,435) (38,102) Carrying value, net $ 6,820,074 $ 6,496,977 ——————— (1) Percentage of portfolio calculations are made prior to consideration of General CECL Allowance. (2) $3.8 million and $3.4 million of the General CECL Allowance for 2021 and 2020, respectively, is excluded from this table because it relates to unfunded commitments and has been recorded as a liability under accounts payable, accrued expenses and other liabilities in our condensed consolidated balance sheet. Geography The table below details the geographic distribution of the properties securing the loans in our portfolio at the dates indicated ($ in thousands): March 31, 2021 December 31, 2020 Geographic Location Carrying % of (1) Carrying % of Portfolio (1) New York City $ 2,398,903 35.0 % $ 2,370,337 36.3 % United Kingdom 1,531,675 22.3 1,263,264 19.3 West 624,435 9.1 749,985 11.5 Southeast 569,104 8.3 581,301 8.9 Midwest 549,469 8.0 552,537 8.5 Northeast 100,813 1.5 103,567 1.6 Other 1,082,110 15.8 914,088 13.9 Total $ 6,856,509 100.0 % $ 6,535,079 100.0 % General CECL Allowance (2) (36,435) (38,102) Carrying value, net $ 6,820,074 $ 6,496,977 ——————— (1) Percentage of portfolio calculations are made prior to consideration of General CECL Allowance. (2) $3.8 million and $3.4 million of the General CECL Allowance for 2021 and 2020, respectively, is excluded from this table because it relates to unfunded commitments and has been recorded as a liability under accounts payable, accrued expenses and other liabilities in our condensed consolidated balance sheet. |
Schedule of Carrying Value of Loan Portfolio Based on Internal Risk Ratings | The following tables allocate the carrying value of our loan portfolio based on our internal risk ratings and date of origination at the dates indicated ($ in thousands): March 31, 2021 Year Originated Risk Rating Number of Loans Total % of Portfolio 2021 2020 2019 2018 2017 Prior 1 — $ — — % $ — $ — $ — $ — $ — $ — 2 1 32,000 0.5 % — — — — — 32,000 3 62 6,420,436 93.6 % 410,664 479,012 2,661,177 1,258,870 917,193 693,520 4 — — — % — — — — — — 5 4 404,073 5.9 % — — — — 151,796 252,277 Total 67 $ 6,856,509 100.0 % $ 410,664 $ 479,012 $ 2,661,177 $ 1,258,870 $ 1,068,989 $ 977,797 General CECL Allowance (36,435) Total carrying value, net $ 6,820,074 Weighted Average Risk Rating 3.1 March 31, 2020 Year Originated Risk Rating Number of Loans Total % of Portfolio 2020 2019 2018 2017 2016 Prior 1 — $ — — % $ — $ — $ — $ — $ — $ — 2 5 130,609 2.0 % — — 23,990 — 36,287 70,332 3 63 5,822,078 89.7 % 423,419 2,609,209 1,490,045 779,882 62,580 456,943 4 — — — % — — — — — — 5 7 536,204 8.3 % — — 31,372 126,013 117,910 260,909 Total 75 $ 6,488,891 100.0 % $ 423,419 $ 2,609,209 $ 1,545,407 $ 905,895 $ 216,777 $ 788,184 General CECL Allowance (58,273) Total carrying value, net $ 6,430,618 Weighted Average Risk Rating 3.1 |
Schedule of CECL Reserves | he following schedule sets out our General CECL Allowance as of March 31, 2021 and December 31, 2020 ($ in thousands): March 31, 2021 December 31, 2020 Commercial mortgage loans, net $ 18,210 $ 17,012 Subordinate loans and other lending assets, net 18,225 21,090 Unfunded commitments (1) 3,794 3,365 Total General CECL Allowance $ 40,229 $ 41,467 ——————— (1) The General CECL Allowance on unfunded commitments is recorded as a liability on our condensed consolidated balance sheet within accounts payable, accrued expenses and other liabilities The following schedule illustrates the quarterly changes in CECL Allowances f or the three months ended March 31, 2021 and 2020, respectively ($ in thousands): Specific CECL Allowance General CECL Allowance Total CECL Allowance CECL Allowance as % of Amortized Cost Funded Unfunded Total General Total December 31, 2020 $ 175,000 $ 38,102 $ 3,365 $ 41,467 $ 216,467 0.67 % 3.23 % Changes: Q1 Allowance (Reversals) — (1,667) 429 (1,238) (1,238) March 31, 2021 $ 175,000 $ 36,435 $ 3,794 $ 40,229 $ 215,229 0.62 % 3.06 % Specific CECL Allowance (1) General CECL Allowance Total CECL Allowance CECL Allowance as % of Amortized Cost Funded Unfunded Total General Total December 31, 2019 $ 56,981 $ — $ — $ — $ 56,981 — % — % Changes: January 1, 2020 - Adoption of CECL Standard — 27,779 3,088 30,867 30,867 Q1 Allowances 150,000 30,494 2,971 33,465 183,465 March 31, 2020 $ 206,981 $ 58,273 $ 6,059 $ 64,332 $ 271,313 1.08 % 4.05 % ——————— (1) As of December 31, 2019, amount represents specific loan loss provisions recorded on assets before the adoption of the CECL Standard. After the |
Real Estate Owned and Related_2
Real Estate Owned and Related Debt, Held for Sale (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Real Estate [Abstract] | |
Real Estate Owned And Related Debt, Held For Sale | The table below details real estate owned and related debt, held for sale, on our condensed consolidated balance sheet ($ in thousands): March 31, 2021 December 31, 2020 Real estate owned, held for sale, gross $ 42,905 $ 42,905 Impairment on real estate owned, held for sale (550) — Real Estate owned, held for sale, net of impairment 42,355 42,905 Debt related to real estate owned, held for sale (33,000) (33,000) Real estate owned, net $ 9,355 $ 9,905 |
Other Assets (Tables)
Other Assets (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
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): March 31, 2021 December 31, 2020 Interest receivable $ 37,646 $ 40,559 Collateral deposited under derivative agreements 27,890 28,320 Loan proceeds held by servicer 1,750 5,649 Other 1,596 112 Total $ 68,882 $ 74,640 |
Secured Debt Arrangements, Net
Secured Debt Arrangements, Net (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Weighted Average Maturities and Interest Rates of Borrowings | At March 31, 2021 and December 31, 2020, our borrowings included the following secured debt arrangements, maturities and weighted-average interest rates ($ in thousands): March 31, 2021 December 31, 2020 Maximum Amount of Borrowings (1) Borrowings Outstanding (1) Maturity (2) Maximum Amount of Borrowings (1) Borrowings Outstanding (1) Maturity (2) JPMorgan (USD) $ 1,115,133 $ 911,539 June 2024 $ 1,113,156 $ 984,125 June 2024 JPMorgan (GBP) 114,487 114,487 June 2024 113,548 113,548 June 2024 JPMorgan (EUR) 70,380 70,380 June 2024 73,296 73,296 June 2024 DB (USD) 700,000 425,803 March 2023 1,000,000 520,457 March 2023 Goldman (USD) 500,000 322,217 November 2023 (3) 500,000 332,352 November 2023 (3) CS Facility - USD 230,205 220,193 December 2023 (4)(5) 374,251 369,182 December 2023 (4)(5) HSBC Facility - EUR 157,270 157,270 July 2022 163,785 163,785 July 2021 Barclays (USD) 200,000 35,192 March 2024 200,000 35,192 March 2024 Total Secured Credit Facilities 3,087,475 2,257,081 3,538,036 2,591,937 Barclays Private Securitization 1,173,298 1,173,298 December 2023 (5) 857,728 857,728 September 2023 (5) Total Secured Debt Arrangements 4,260,773 3,430,379 4,395,764 3,449,665 Less: deferred financing costs N/A (11,800) N/A (12,993) Total Secured Debt Arrangements, net (6)(7)(8) $ 4,260,773 $ 3,418,579 $ 4,395,764 $ 3,436,672 ——————— (1) As of March 31, 2021, British Pound Sterling ("GBP"), Euros ("EUR"), and Swedish Krona ("SEK") borrowings were converted to USD at a rate o f 1.38, 1.17, and 0.11, respectively. As of December 31, 2020, GBP and EUR borrowings were converted to USD at a rate of 1.37 and 1.22, respectively. (2) Maturity date assumes extensions at our option are exercised with consent of financing providers, where applicable. (3) Assumes facility enters the amortization period described below. (4) Assumes financings are extended in line with the underlying loans. (5) Represents weighted average maturity across various financings with the counterparty. See below for additional details. (6) Weighted-average borrowing costs as of March 31, 2021 and 2020 were USD L+2.14% / GBP L+2.03% / EUR L+1.46% / SEK L+1.50% and USD L+2.16% / GBP L+1.83% / EUR L+1.46%, respectively. (7) Weighted average advance rates based on cost as of March 31, 2021 and 2020 were 64.5% (62.2% (USD) / 69.0% (GBP) / 60.6% (EUR) / 80.8% (SEK)) and 63.7% (62.5% (USD) / 68.7% (GBP) / 60.8% (EUR)). |
Schedule of Assets Under The Private Barclays Securitization | The table below provides the borrowings outstanding (on an as converted basis) and weighted-average fully-extended maturities by currency for the assets financed under the Barclays Private Securitization as of March 31, 2021 ($ in thousands): Borrowings outstanding Fully-Extended Maturity (1) Total/Weighted-Average GBP $879,815 July 2024 Total/Weighted-Average SEK 149,883 March 2022 Total/Weighted-Average EUR 143,600 February 2022 (2) Total/Weighted-Average Securitization $1,173,298 December 2023 ——————— (1) Assumes underlying loans extend to fully extended maturity and extensions at our option are exercised. (2) The EUR portion of the Barclays Private Securitization has an "evergreen" feature such that the facility continues for one year and can be terminated by either party on certain dates with, depending on the date of notice, a minimum of nine to twelve months' notice. Principal Amount Unamortized Issuance Discount Deferred Financing Costs Carrying Value Spread Maturity Date 2026 Term Loan $ 491,250 $ (1,816) $ (6,703) $ 482,731 2.75 % 5/15/2026 2028 Term Loan 300,000 (2,964) (3,793) 293,243 3.50 % 3/11/2028 Total $ 791,250 $ (4,780) $ (10,496) $ 775,974 The following table summarizes the terms of our Term Loans as of December 31, 2020 ($ in thousands): Principal Amount Unamortized Issuance Discount Deferred Financing Costs Carrying Value Spread Maturity Date 2026 Term Loan $ 492,500 $ (1,905) $ (7,130) $ 483,465 2.75 % 5/15/2026 |
Schedule of Assets and Liabilities | The table below provides the assets and liabilities of the Barclays Private Securitization VIE included in our condensed consolidated balance sheet ($ in thousands): March 31, 2021 December 31, 2020 Assets: Cash $ 2,572 $ 2,020 Commercial mortgage loans, net (1) 1,712,897 1,290,393 Other Assets 6,837 15,831 Total Assets $ 1,722,306 $ 1,308,244 Liabilities: Secured debt arrangements, net (net of deferred financing costs of $2.3 million and $0.7 million in 2021 and 2020, respectively) $ 1,171,036 $ 857,043 Accounts payable, accrued expenses and other liabilities (2) 2,310 1,307 Total Liabilities $ 1,173,346 $ 858,350 ——————— (1) Net of the General CECL Allowance of $7.4 million and $4.4 million as of March 31, 2021 and December 31, 2020, respectively. (2) Represents General CECL Allowance related to unfunded commitments on commercial mortgage loans, net of $1.2 million and $0.3 million as of March 31, 2021 and December 31, 2020, respectively. |
Interest Income and Interest Expense Disclosure | The table below provides the net income of the Barclays Private Securitization VIE included in our condensed consolidated statement of operations ($ in thousands): Three months ended March 31, 2021 Net Interest Income: Interest income from commercial mortgage loans $ 16,093 Interest expense (4,590) Net interest income $ 11,503 General and administrative expense (1) Provision for loan losses and impairments (3,628) Foreign currency gain (912) Net Income $ 6,962 |
Schedule of Remaining Maturities of Borrowings | At March 31, 2021, our borrowings had the following remaining maturities ($ in thousands): Less than 1 to 3 3 to 5 More than Total JPMorgan Facility $ 96,740 $ 381,359 $ 618,307 $ — $ 1,096,406 DB Facility — 425,803 — — 425,803 Goldman Facility 322,217 — — — 322,217 CS Facility - USD 42,205 40,500 137,488 — 220,193 HSBC Facility - EUR — 157,270 — — 157,270 Barclays Facility - USD — 35,192 — — 35,192 Barclays Private Securitization 293,483 549,109 330,706 — 1,173,298 Total $ 754,645 $ 1,589,233 $ 1,086,501 $ — $ 3,430,379 |
Schedule of Outstanding, Maximum and Average Balances of Debt | The table below summarizes the outstanding balances at March 31, 2021, as well as the maximum and average month-end balances for the three months ended March 31, 2021 for our borrowings under secured debt arrangements ($ in thousands). As of March 31, 2021 For the three months ended March 31, 2021 Balance Amortized Cost of Collateral Maximum Month-End Average Month-End JPMorgan Facility $ 1,096,406 $ 1,855,536 $ 1,172,308 $ 1,146,506 DB Facility 425,803 658,672 520,217 488,746 Goldman Facility 322,217 501,146 331,154 327,536 CS Facility - USD 220,193 331,053 369,182 318,853 HSBC Facility - EUR 157,270 207,182 162,715 160,628 Barclays Facility - USD 35,192 50,057 35,193 35,193 Barclays Private Securitization 1,173,298 1,715,975 1,173,298 1,023,076 Total $ 3,430,379 $ 5,319,621 The table below summarizes the outstanding balances at December 31, 2020, as well as the maximum and average month-end balances for the year ended December 31, 2020 for our borrowings under secured debt arrangements ($ in thousands). As of December 31, 2020 For the year ended December 31, 2020 Balance Amortized Cost of Collateral Maximum Month-End Average Month-End JPMorgan Facility $ 1,170,969 $ 2,009,249 $ 1,192,288 $ 1,119,997 DB Facility 520,457 814,715 526,743 506,831 Goldman Facility 332,352 510,371 362,139 343,621 CS Facility - USD 369,182 524,139 378,781 348,464 CS Facility - GBP — — 90,111 43,094 HSBC Facility - USD — — 50,625 44,000 HSBC Facility - GBP — — 34,500 20,563 HSBC Facility - EUR 163,785 215,509 163,788 154,725 Barclays Facility - USD 35,192 49,993 35,193 29,327 Barclays Facility - GBP — — 666,810 260,692 Barclays Facility - EUR — — 180,595 70,521 Barclays Private Securitization 857,728 1,295,023 857,728 823,915 Total $ 3,449,665 $ 5,418,999 |
Senior Secured Term Loan, Net (
Senior Secured Term Loan, Net (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | The table below provides the borrowings outstanding (on an as converted basis) and weighted-average fully-extended maturities by currency for the assets financed under the Barclays Private Securitization as of March 31, 2021 ($ in thousands): Borrowings outstanding Fully-Extended Maturity (1) Total/Weighted-Average GBP $879,815 July 2024 Total/Weighted-Average SEK 149,883 March 2022 Total/Weighted-Average EUR 143,600 February 2022 (2) Total/Weighted-Average Securitization $1,173,298 December 2023 ——————— (1) Assumes underlying loans extend to fully extended maturity and extensions at our option are exercised. (2) The EUR portion of the Barclays Private Securitization has an "evergreen" feature such that the facility continues for one year and can be terminated by either party on certain dates with, depending on the date of notice, a minimum of nine to twelve months' notice. Principal Amount Unamortized Issuance Discount Deferred Financing Costs Carrying Value Spread Maturity Date 2026 Term Loan $ 491,250 $ (1,816) $ (6,703) $ 482,731 2.75 % 5/15/2026 2028 Term Loan 300,000 (2,964) (3,793) 293,243 3.50 % 3/11/2028 Total $ 791,250 $ (4,780) $ (10,496) $ 775,974 The following table summarizes the terms of our Term Loans as of December 31, 2020 ($ in thousands): Principal Amount Unamortized Issuance Discount Deferred Financing Costs Carrying Value Spread Maturity Date 2026 Term Loan $ 492,500 $ (1,905) $ (7,130) $ 483,465 2.75 % 5/15/2026 |
Convertible Senior Notes, Net (
Convertible Senior Notes, Net (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Convertible Senior Notes | The following table summarizes the terms of the Notes as of March 31, 2021 ($ 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 1.40 2023 Notes 230,000 5.38 % 6.16 % 48.7187 10/15/2023 2.54 Total $ 575,000 ——————— (1) Effective rate includes the effect of the adjustment for the conversion option (See footnote (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) | 3 Months Ended |
Mar. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Non-Designated Foreign Exchange Forwards | The following table summarizes our non-designated foreign exchange ("Fx") forwards and our interest rate cap as of March 31, 2021: March 31, 2021 Type of Derivatives Number of Contracts Aggregate Notional Amount (in thousands) Notional Currency Maturity Weighted-Average Years to Maturity Fx contracts - GBP 107 500,901 GBP April 2021 - February 2026 2.12 Fx contracts - EUR 66 237,519 EUR May 2021 - August 2024 2.37 Fx contracts - SEK 20 604,372 SEK August 2021 - May 2026 4.07 Interest rate cap 1 500,000 USD June 2023 2.21 The following table summarizes our non-designated Fx forwards and our interest rate cap as of December 31, 2020: December 31, 2020 Type of Derivatives Number of Contracts Aggregate Notional Amount (in thousands) Notional Currency Maturity Weighted-Average Years to Maturity Fx contracts - GBP 93 428,493 GBP January 2021 - December 2024 2.04 Fx contracts - EUR 69 239,466 EUR February 2021 - August 2024 2.61 Fx contracts - SEK N/A N/A N/A N/A N/A Interest rate cap 1 500,000 USD June 2023 2.49 |
Schedule of Amounts Recognized on Consolidated Statements of Operations Related to Company's Derivatives | The following table summarizes the amounts recognized on our condensed consolidated statements of operations related to our derivatives for the three months ended March 31, 2021, and 2020 ($ in thousands): Amount of gain (loss) Three months ended March 31, Location of Gain (Loss) Recognized in Income 2021 2020 Forward currency contracts Unrealized gain on derivative instruments $ 10,502 $ 62,436 Forward currency contracts Realized gain (loss) on derivative instruments (702) 8,055 Total $ 9,800 $ 70,491 Amount of gain (loss) Three months ended March 31, Location of Gain (Loss) Recognized in Income 2021 2020 Interest rate cap (1) Unrealized gain on interest rate cap $ 357 $ — Interest rate swap (2) Unrealized loss on interest rate swap — (35,548) Total $ 357 $ (35,548) ——————— (1) With a notional amount of $500.0 million and $0, and at March 31, 2021 and 2020, respectively. (2) With a notional amount of $0 and $500.0 million at March 31, 2021 and 2020, respectively. |
Schedule of Gross Asset and Liability Amounts Related to Derivatives | The following tables summarize the gross asset and liability amounts related to our derivatives at March 31, 2021 and December 31, 2020 ($ in thousands): March 31, 2021 December 31, 2020 Gross Gross Net Amounts Gross Amount of Recognized Liabilities Gross Net Amounts of Liabilities Presented in our Condensed Consolidated Balance Sheet Forward currency contracts $ 25,994 $ (5,121) $ 20,873 $ 32,172 $ (797) $ 31,375 Interest rate cap — (491) (491) — (134) (134) Total derivative liabilities $ 25,994 $ (5,612) $ 20,382 $ 32,172 $ (931) $ 31,241 |
Participations Sold (Tables)
Participations Sold (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Participating Mortgage Loans | The table below details participations sold included in our condensed consolidated balance sheet ($ in thousands): March 31, 2021 December 31, 2020 Participation sold on Commercial mortgage loans $ 23,974 $ 9,217 Participation sold on Subordinate loans and other lending assets (1) 26,735 25,757 Total Participations sold $ 50,709 $ 34,974 ——————— (1) Includes $1.0 million and $0.8 million of PIK interest in 2021 and 2020, respectively. |
Accounts Payable, Accrued Exp_2
Accounts Payable, Accrued Expenses and Other Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable, Accrued Expense and Other Liabilities | The following table details the components of our accounts payable, accrued expense and other liabilities ($ in thousands): March 31, 2021 December 31, 2020 Accrued dividends payable $ 52,615 $ 52,768 Accrued interest payable 13,503 13,979 Accounts payable and other liabilities 4,987 4,775 General CECL Allowance on unfunded commitments (1) 3,794 3,365 Total $ 74,899 $ 74,887 ——————— (1) Refer to Note 4 - Commercial Mortgage, Subordinate Loans and Other Lending Assets, Net for additional disclosure related to the General CECL Allowance on unfunded commitments for the three months ended March 31, 2021 and 2020, respectively. |
Share-Based Payments (Tables)
Share-Based Payments (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
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 three months ended March 31, 2021: Type Restricted Stock RSUs Grant Date Fair Value ($ in millions) Outstanding at December 31, 2020 82,235 2,455,853 Granted — — Vested — — N/A Forfeiture — (35,016) N/A Outstanding at March 31, 2021 82,235 2,420,837 Below is a summary of restricted stock and RSU vesting dates as of March 31, 2021 : Vesting Year Restricted Stock RSU Total Awards 2021 82,235 1,140,572 1,222,807 2022 — 824,066 824,066 2023 — 456,199 456,199 Total 82,235 2,420,837 2,503,072 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Schedule of Dividends Activity | The following table details our dividend activity: Three months ended Dividends declared per share of: March 31, 2021 March 31, 2020 Common Stock $0.35 $0.40 Series B Preferred Stock 0.50 0.50 |
Common Stock Repurchases | As of March 31, 2021 there was $172.2 million remaining authorized under our stock repurchase program. The following table details our common stock repurchase activity during the three months ended March 31, 2021 and 2020: Three months ended March 31, 2021 March 31, 2020 Shares Repurchased — 300,000 Weighted Average Price — $8.11 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Carrying Value and Estimated Fair Value of Company's Financial Instruments | The following table presents the carrying value and estimated fair value of our financial instruments not carried at fair value on our condensed consolidated balance sheet at March 31, 2021 and December 31, 2020 ($ in thousands): March 31, 2021 December 31, 2020 Carrying Estimated Carrying Estimated Cash and cash equivalents $ 294,060 $ 294,060 $ 325,498 $ 325,498 Commercial mortgage loans, net 5,754,258 5,679,416 5,451,084 5,361,948 Subordinate loans and other lending assets, net (1) 1,065,816 1,058,560 1,045,893 1,027,582 Secured debt arrangements, net (3,418,579) (3,418,579) (3,436,672) (3,436,672) Senior secured term loan, net (775,974) (781,767) (483,465) (475,263) 2022 Notes (341,035) (342,764) (340,361) (327,381) 2023 Notes (225,676) (226,870) (225,293) (214,875) Participations sold (50,709) (50,646) (34,974) (34,919) Debt related to real estate owned, held for sale (33,000) (33,000) (33,000) (33,000) ——————— (1) Includes subordinate risk retention interests in securitization vehicles with an estimated fair value that approximates their carrying value. |
Net Income (Loss) per Share (Ta
Net Income (Loss) per Share (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
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 months ended March 31, 2021 and 2020 ($ in thousands except per share data): For the three months ended March 31, 2021 2020 Basic Earnings Net income (loss) $ 58,335 $ (127,842) Less: Preferred dividends (3,385) (3,385) Net income available to common stockholders $ 54,950 $ (131,227) Less: Dividends on participating securities (847) (802) Basic Earnings $ 54,103 $ (132,029) Diluted Earnings Basic Earnings $ 54,103 $ (132,029) Add: Dividends on participating securities 847 — Add: Interest expense on Notes 8,245 — Diluted Earnings $ 63,195 $ (132,029) Number of Shares: Basic weighted-average shares of common stock outstanding 139,805,863 153,948,191 Diluted weighted-average shares of common stock outstanding 170,792,684 153,948,191 Earnings Per Share Attributable to Common Stockholders Basic $ 0.39 $ (0.86) Diluted $ 0.37 $ (0.86) |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2021segment | |
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 | Mar. 31, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities, net | $ (20,382) | $ (31,241) |
Real estate owned, held for sale | 42,355 | 42,905 |
Estimate of Fair Value | Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities, net | (20,382) | (31,241) |
Estimate of Fair Value | Fair Value, Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Real estate owned, held for sale | 42,355 | 42,905 |
Debt related to real estate owned, held for sale | (33,000) | (33,000) |
Net real estate owned, and related debt, held for sale | 9,355 | 9,905 |
Level I | Estimate of Fair Value | Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities, net | 0 | 0 |
Level I | Estimate of Fair Value | Fair Value, Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Real estate owned, held for sale | 0 | 0 |
Debt related to real estate owned, held for sale | 0 | 0 |
Net real estate owned, and related debt, held for sale | 0 | 0 |
Level II | Estimate of Fair Value | Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities, net | (20,382) | (31,241) |
Level II | Estimate of Fair Value | Fair Value, Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Real estate owned, held for sale | 0 | 0 |
Debt related to real estate owned, held for sale | 0 | 0 |
Net real estate owned, and related debt, held for sale | 0 | 0 |
Level III | Estimate of Fair Value | Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities, net | 0 | 0 |
Level III | Estimate of Fair Value | Fair Value, Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Real estate owned, held for sale | 42,355 | 42,905 |
Debt related to real estate owned, held for sale | (33,000) | (33,000) |
Net real estate owned, and related debt, held for sale | 9,355 | 9,905 |
Foreign currency forward, net | Estimate of Fair Value | Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | (20,873) | (31,375) |
Foreign currency forward, net | Level I | Estimate of Fair Value | Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Foreign currency forward, net | Level II | Estimate of Fair Value | Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | (20,873) | (31,375) |
Foreign currency forward, net | Level III | Estimate of Fair Value | Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Interest rate cap asset | Estimate of Fair Value | Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 491 | 134 |
Interest rate cap asset | Level I | Estimate of Fair Value | Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Interest rate cap asset | Level II | Estimate of Fair Value | Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 491 | 134 |
Interest rate cap asset | Level III | Estimate of Fair Value | Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | $ 0 | $ 0 |
Commercial Mortgage, Subordin_3
Commercial Mortgage, Subordinate Loans and Other Lending Assets, Net - Loan Portfolio (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Commercial mortgage loans, net | $ 6,820,074 | $ 6,496,977 | $ 6,430,618 | |
Commercial Mortgage and Subordinated Portfolio Segment | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Commercial mortgage loans, net | 140,800 | 136,100 | ||
Commercial Mortgage Portfolio Segment | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Commercial mortgage loans, net | [1],[2] | 5,754,258 | 5,451,084 | |
Subordinate Mortgage Portfolio Segment | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Commercial mortgage loans, net | [2] | $ 1,065,816 | $ 1,045,893 | |
[1] | Includes $5,319,621 and $5,418,999 pledged as collateral under secured debt arrangements in 2021 and 2020, respectively | |||
[2] | Net of $211,435 and $213,102 CECL Allowances in 2021 and 2020, respectively, comprised of $175,000 Specific CECL Allowance and $36,435 and $38,102 General CECL Allowance, respectively. |
Commercial Mortgage, Subordin_4
Commercial Mortgage, Subordinate Loans and Other Lending Assets, Net - Additional Information (Details) £ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||
Jan. 31, 2020USD ($) | Jan. 31, 2020GBP (£) | Mar. 31, 2021USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2020USD ($) | Mar. 31, 2021GBP (£) | Nov. 30, 2020USD ($) | Nov. 30, 2020GBP (£) | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||||
Mortgage loans on real estate, commercial and consumer, percentage of portfolio | 100.00% | 100.00% | 100.00% | ||||||
Decrease in general CECL allowance | $ 1,200,000 | ||||||||
Interest receivable | 37,646,000 | $ 40,559,000 | |||||||
Amortized cost of loans in cost recovery | 404,074,000 | $ 373,500,000 | |||||||
Interest received for loans in cost recovery | 300,000 | 1,800,000 | |||||||
Total carrying value, net | 6,820,074,000 | 6,430,618,000 | 6,496,977,000 | ||||||
Principal balance | 6,856,509,000 | 6,488,891,000 | 6,535,079,000 | ||||||
Specific CECL allowance | 0 | (150,000,000) | |||||||
Payment in kind interest | 16,800,000 | 12,400,000 | |||||||
Proceeds from pre-payment penalties or accelerated fees | 200,000 | ||||||||
Past Due 90 | |||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||||
Amortized cost of loans in cost recovery | $ 774,800,000 | 711,900,000 | |||||||
Past Due 30-59 | |||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||||
Principal balance | $ 19,000,000 | ||||||||
Urban Retail | |||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||||
Mortgage loans on real estate, commercial and consumer, percentage of portfolio | 11.50% | 10.00% | |||||||
Total carrying value, net | $ 422,700,000 | £ 309.2 | |||||||
Principal balance | $ 787,311,000 | $ 655,456,000 | |||||||
Sale of Mezzanine Loan | |||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||||
Proceeds from sale of loan | $ 81,300,000 | £ 62.2 | |||||||
Realized loss on investment | 0 | ||||||||
Sale Of Mezzanine Loan Two | |||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||||
Realized loss on investment | 0 | ||||||||
Sale of Unfunded Commitment of Senior Mortgage | |||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||||
Proceeds from sale of loan | $ 65,300,000 | £ 50 | |||||||
Commercial Mortgage and Subordinated Portfolio Segment | |||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||||
Total carrying value, net | 140,800,000 | 136,100,000 | |||||||
Principal balance | 6,856,509,000 | 6,535,079,000 | |||||||
Commercial Mortgage and Subordinated Portfolio Segment | Urban Retail | |||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||||
Total carrying value, net | 351,700,000 | £ 255.2 | $ 338,400,000 | £ 247.5 | |||||
Subordinate Mortgage Portfolio Segment | |||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||||
Total carrying value, net | [1] | 1,065,816,000 | 1,045,893,000 | ||||||
Payment in kind interest | $ 1,000,000 | $ 800,000 | |||||||
Maximum exposure to loss | $ 68,100,000 | ||||||||
Maximum exposure to loss, term | 5 years 7 months 6 days | ||||||||
Floating Rate Loan | |||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||||
Mortgage loans on real estate, commercial and consumer, percentage of portfolio | 95.00% | 95.00% | |||||||
Mortgage, Amortized cost | |||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||||
Amortized cost of loans in cost recovery | $ 375,813,000 | ||||||||
Principal balance | 7,051,148,000 | $ 6,728,424,000 | |||||||
Urban Predevelopment - Miami, FL | Mortgage, Amortized cost | |||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||||
Amortized cost of loans in cost recovery | 118,136,000 | ||||||||
Total carrying value, net | $ 180,500,000 | ||||||||
[1] | Net of $211,435 and $213,102 CECL Allowances in 2021 and 2020, respectively, comprised of $175,000 Specific CECL Allowance and $36,435 and $38,102 General CECL Allowance, respectively. |
Commercial Mortgage, Subordin_5
Commercial Mortgage, Subordinate Loans and Other Lending Assets, Net - Activity Relating to Loan Investment Portfolio (Details) - USD ($) $ in Thousands | 3 Months Ended | ||||
Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Jan. 01, 2020 | Dec. 31, 2019 | |
Specific CECL Allowance | |||||
Specific provision for loan loss, beginning | $ (175,000) | ||||
Specific provision for loan loss, ending | (175,000) | ||||
Carrying Value, Net(2) | |||||
Carrying value, beginning balance | 6,535,079 | ||||
Carrying value, ending balance | 6,856,509 | ||||
General CECL allowance | (36,435) | $ (38,102) | $ (58,273) | ||
Carrying value, net | 6,820,074 | 6,496,977 | 6,430,618 | ||
General CECL allowance related to unfunded commitments | 3,794 | 3,365 | $ 6,059 | $ 3,365 | $ 0 |
Commercial Mortgage and Subordinated Portfolio Segment | |||||
Principal Balance | |||||
Principal balance, beginning | 6,728,424 | ||||
New loan fundings | 417,161 | ||||
Add-on loan fundings | 133,437 | ||||
Loan repayments and sales | (232,038) | ||||
Gain (loss) on foreign currency translation | (17,175) | ||||
PIK interest and amortization of fees | 21,339 | ||||
Principal balance, ending | 7,051,148 | ||||
Deferred Fees/Other Items | |||||
Deferred fees/other items, beginning | (18,345) | ||||
Gain (loss) on foreign currency translation | 125 | ||||
Deferred fees | (6,564) | ||||
PIK interest and amortization of fees | 5,145 | ||||
Deferred fees/other items, ending | (19,639) | ||||
Specific CECL Allowance | |||||
Specific provision for loan loss, beginning | (175,000) | ||||
Specific provision for loan loss, ending | (175,000) | ||||
Carrying Value, Net(2) | |||||
Carrying value, beginning balance | 6,535,079 | ||||
New loan fundings | 417,161 | ||||
Add-on loan fundings | 133,437 | ||||
Loan repayments and sales | (232,038) | ||||
Gain (loss) on foreign currency translation | (17,050) | ||||
Deferred fees | (6,564) | ||||
PIK interest and amortization of fees | 26,484 | ||||
Carrying value, ending balance | 6,856,509 | ||||
Carrying value, net | $ 140,800 | $ 136,100 |
Commercial Mortgage, Subordin_6
Commercial Mortgage, Subordinate Loans and Other Lending Assets, Net - Statistics for Loan Portfolio (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2021USD ($)loan | Mar. 31, 2020USD ($)loan | Dec. 31, 2020USD ($)loan | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Number of loans | loan | 67 | 75 | 67 |
Principal balance | $ 6,856,509 | $ 6,488,891 | $ 6,535,079 |
Commercial mortgage loans, net | 6,820,074 | $ 6,430,618 | 6,496,977 |
Unfunded loan commitments | $ 1,402,474 | $ 1,399,989 | |
Weighted-average cash coupon | 5.60% | 5.70% | |
Weighted-average remaining fully-extended term | 2 years 9 months 18 days | 2 years 9 months 18 days | |
Weighted-average expected term | 2 years 1 month 6 days | 2 years 1 month 6 days | |
Interest rate used in calculating weighted-average cash coupon for non-accrual or cost recovery loans | 0.00% | 0.00% | |
Principal balance | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Principal balance | $ 7,051,148 | $ 6,728,424 |
Commercial Mortgage, Subordin_7
Commercial Mortgage, Subordinate Loans and Other Lending Assets, Net - Schedule of Mortgage Loans by Property Type and Geographic Distribution (Details) $ in Thousands, £ in Millions | 3 Months Ended | 12 Months Ended | |||||
Mar. 31, 2021USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2020USD ($) | Nov. 30, 2020USD ($) | Nov. 30, 2020GBP (£) | Jan. 01, 2020USD ($) | Dec. 31, 2019USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Carrying Value | $ 6,856,509 | $ 6,488,891 | $ 6,535,079 | ||||
Mortgage loans on real estate, commercial and consumer, percentage of portfolio | 100.00% | 100.00% | 100.00% | ||||
General CECL allowance | $ (36,435) | $ (58,273) | $ (38,102) | ||||
Carrying value, net | 6,820,074 | 6,430,618 | 6,496,977 | ||||
General CECL allowance related to unfunded commitments | 3,794 | $ 6,059 | 3,365 | $ 3,365 | $ 0 | ||
New York City | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Carrying Value | $ 2,398,903 | 2,370,337 | |||||
Mortgage loans on real estate, commercial and consumer, percentage of portfolio | 35.00% | 36.30% | |||||
Northeast | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Carrying Value | $ 100,813 | 103,567 | |||||
Mortgage loans on real estate, commercial and consumer, percentage of portfolio | 1.50% | 1.60% | |||||
United Kingdom | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Carrying Value | $ 1,531,675 | 1,263,264 | |||||
Mortgage loans on real estate, commercial and consumer, percentage of portfolio | 22.30% | 19.30% | |||||
West | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Carrying Value | $ 624,435 | 749,985 | |||||
Mortgage loans on real estate, commercial and consumer, percentage of portfolio | 9.10% | 11.50% | |||||
Southeast | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Carrying Value | $ 569,104 | 581,301 | |||||
Mortgage loans on real estate, commercial and consumer, percentage of portfolio | 8.30% | 8.90% | |||||
Midwest | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Carrying Value | $ 549,469 | 552,537 | |||||
Mortgage loans on real estate, commercial and consumer, percentage of portfolio | 8.00% | 8.50% | |||||
Other | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Carrying Value | $ 1,082,110 | 914,088 | |||||
Mortgage loans on real estate, commercial and consumer, percentage of portfolio | 15.80% | 13.90% | |||||
Office | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Carrying Value | $ 1,803,214 | $ 1,911,145 | |||||
Mortgage loans on real estate, commercial and consumer, percentage of portfolio | 26.30% | 29.20% | |||||
Hotel | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Carrying Value | $ 1,544,248 | $ 1,576,369 | |||||
Mortgage loans on real estate, commercial and consumer, percentage of portfolio | 22.50% | 24.10% | |||||
Residential-For-Sale, Construction | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Carrying Value | $ 674,416 | $ 738,035 | |||||
Mortgage loans on real estate, commercial and consumer, percentage of portfolio | 9.80% | 11.30% | |||||
Residential-for-sale: inventory | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Carrying Value | $ 312,063 | $ 244,803 | |||||
Mortgage loans on real estate, commercial and consumer, percentage of portfolio | 4.60% | 3.70% | |||||
Urban Retail | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Carrying Value | $ 787,311 | $ 655,456 | |||||
Mortgage loans on real estate, commercial and consumer, percentage of portfolio | 11.50% | 10.00% | |||||
Carrying value, net | $ 422,700 | £ 309.2 | |||||
Industrial | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Carrying Value | $ 414,480 | $ 228,918 | |||||
Mortgage loans on real estate, commercial and consumer, percentage of portfolio | 6.00% | 3.50% | |||||
Healthcare | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Carrying Value | $ 370,717 | $ 369,676 | |||||
Mortgage loans on real estate, commercial and consumer, percentage of portfolio | 5.40% | 5.70% | |||||
Urban Predevelopment | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Carrying Value | $ 52,480 | $ 298,909 | |||||
Mortgage loans on real estate, commercial and consumer, percentage of portfolio | 0.80% | 4.60% | |||||
Other | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Carrying Value | $ 897,580 | $ 511,768 | |||||
Mortgage loans on real estate, commercial and consumer, percentage of portfolio | 13.10% | 7.90% |
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 | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2021USD ($)loan | Mar. 31, 2020USD ($)loan | Dec. 31, 2020USD ($)loan | |
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Number of Loans | loan | 67 | 75 | 67 |
Total | $ 6,856,509 | $ 6,488,891 | $ 6,535,079 |
Mortgage loans on real estate, commercial and consumer, percentage of portfolio | 100.00% | 100.00% | 100.00% |
Year 1 | $ 410,664 | $ 423,419 | |
Year 2 | 479,012 | 2,609,209 | |
Year 3 | 2,661,177 | 1,545,407 | |
Year 4 | 1,258,870 | 905,895 | |
Year 5 | 1,068,989 | 216,777 | |
Prior | 977,797 | 788,184 | |
General CECL Allowance | (36,435) | (58,273) | $ (38,102) |
Total carrying value, net | $ 6,820,074 | $ 6,430,618 | $ 6,496,977 |
Weighted Average Risk Rating | 3.1 | 3.1 | |
1 | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Number of Loans | loan | 0 | 0 | |
Total | $ 0 | $ 0 | |
Mortgage loans on real estate, commercial and consumer, percentage of portfolio | 0.00% | 0.00% | |
Year 1 | $ 0 | $ 0 | |
Year 2 | 0 | 0 | |
Year 3 | 0 | 0 | |
Year 4 | 0 | 0 | |
Year 5 | 0 | 0 | |
Prior | $ 0 | $ 0 | |
2 | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Number of Loans | loan | 1 | 5 | |
Total | $ 32,000 | $ 130,609 | |
Mortgage loans on real estate, commercial and consumer, percentage of portfolio | 0.50% | 2.00% | |
Year 1 | $ 0 | $ 0 | |
Year 2 | 0 | 0 | |
Year 3 | 0 | 23,990 | |
Year 4 | 0 | 0 | |
Year 5 | 0 | 36,287 | |
Prior | $ 32,000 | $ 70,332 | |
3 | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Number of Loans | loan | 62 | 63 | |
Total | $ 6,420,436 | $ 5,822,078 | |
Mortgage loans on real estate, commercial and consumer, percentage of portfolio | 93.60% | 89.70% | |
Year 1 | $ 410,664 | $ 423,419 | |
Year 2 | 479,012 | 2,609,209 | |
Year 3 | 2,661,177 | 1,490,045 | |
Year 4 | 1,258,870 | 779,882 | |
Year 5 | 917,193 | 62,580 | |
Prior | $ 693,520 | $ 456,943 | |
4 | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Number of Loans | loan | 0 | 0 | |
Total | $ 0 | $ 0 | |
Mortgage loans on real estate, commercial and consumer, percentage of portfolio | 0.00% | 0.00% | |
Year 1 | $ 0 | $ 0 | |
Year 2 | 0 | 0 | |
Year 3 | 0 | 0 | |
Year 4 | 0 | 0 | |
Year 5 | 0 | 0 | |
Prior | $ 0 | $ 0 | |
5 | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Number of Loans | loan | 4 | 7 | |
Total | $ 404,073 | $ 536,204 | |
Mortgage loans on real estate, commercial and consumer, percentage of portfolio | 5.90% | 8.30% | |
Year 1 | $ 0 | $ 0 | |
Year 2 | 0 | 0 | |
Year 3 | 0 | 31,372 | |
Year 4 | 0 | 126,013 | |
Year 5 | 151,796 | 117,910 | |
Prior | $ 252,277 | $ 260,909 |
Commercial Mortgage, Subordin_9
Commercial Mortgage, Subordinate Loans and Other Lending Assets, Net - Cost Recovery Loans (Details) | 3 Months Ended | ||
Mar. 31, 2021USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2020USD ($) | |
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Amortized cost | $ 404,074,000 | $ 373,500,000 | |
Financing receivable, allowance for credit loss | 175,000,000 | $ 175,000,000 | |
Specific CECL allowance (reversal), net of previously recorded amount | 125,000,000 | ||
Provision previously recorded due to payoff or restructuring | 25,000,000 | ||
Total carrying value, net | 6,820,074,000 | 6,430,618,000 | $ 6,496,977,000 |
Specific CECL Allowance | 0 | (150,000,000) | |
Payment in kind interest | 16,800,000 | 12,400,000 | |
Minimum | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Financing Receivable, Rent, Price Per Square Foot | $ 45 | ||
Minimum | Hotel | Discount Rate | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loan collateral, measurement input | 0.085 | ||
Minimum | Hotel | Capitalization Rate | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loan collateral, measurement input | 0.070 | ||
Minimum | Urban Predevelopment | Capitalization Rate | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loan collateral, measurement input | 0.050 | ||
Maximum | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Financing Receivable, Rent, Price Per Square Foot | $ 215 | ||
Maximum | Urban Predevelopment | Capitalization Rate | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loan collateral, measurement input | 0.055 | ||
Retail Center - Cincinnati, OH | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Specific CECL Allowance | $ (67,000,000) | ||
Payment in kind interest | $ 300,000 | $ 600,000 | |
Retail Center - Cincinnati, OH | Capitalization Rate | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loan collateral, measurement input | 0.083 | ||
Mortgage, Amortized cost | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Amortized cost | $ 375,813,000 | ||
Mortgage, Amortized cost | Urban Predevelopment - Brooklyn, NY | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Amortized cost | 151,796,000 | ||
Mortgage, Amortized cost | Urban Predevelopment - Miami, FL | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Amortized cost | 118,136,000 | ||
Total carrying value, net | 180,500,000 | ||
Mortgage, Amortized cost | Retail Center - Cincinnati, OH | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Amortized cost | 105,881,000 | ||
Mezzanine, Amortized cost | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Amortized cost | 28,261,000 | ||
Mezzanine, Amortized cost | Hotel - Washington D.C. | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Amortized cost | $ 28,261,000 |
Commercial Mortgage, Subordi_10
Commercial Mortgage, Subordinate Loans and Other Lending Assets, Net - Current Expected Credit Losses (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Jan. 01, 2020 | Dec. 31, 2019 |
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Allowance reserve | $ 36,435 | $ 38,102 | $ 58,273 | ||
Unfunded commitments | 3,794 | 3,365 | 6,059 | $ 3,365 | $ 0 |
Total General CECL Allowance | 40,229 | $ 41,467 | $ 64,332 | 41,467 | $ 0 |
Commercial Mortgage Portfolio Segment | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Allowance reserve | 18,210 | 17,012 | |||
Subordinate Mortgage Portfolio Segment | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Allowance reserve | $ 18,225 | $ 21,090 |
Commercial Mortgage, Subordi_11
Commercial Mortgage, Subordinate Loans and Other Lending Assets, Net - CECL Allowance as Percentage of Amortized Cost and Total Commitment (Details) - USD ($) $ in Thousands | 3 Months Ended | ||||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Allowance and Provision for Loan Credit Loss [Abstract] | |||||
Beginning balance, specific CECL allowance, funded | $ 175,000 | ||||
Quarter allowances (reversals), specific CECL allowance, funded | [1] | (1,238) | $ 183,465 | ||
Ending balance, specific CECL allowance, funded | 175,000 | ||||
Financing Receivable, Funded, Allowance for Credit Loss [Roll Forward] | |||||
Beginning balance, General CECL allowance, funded | 38,102 | 0 | |||
Quarter allowances (reversals), General CECL allowance, funded | (1,667) | 30,494 | |||
Ending balance, General CECL allowance, funded | 36,435 | 58,273 | |||
Financing Receivable, Unfunded, Allowance for Credit Loss [Roll Forward] | |||||
Beginning balance, General CECL allowance, unfunded | 3,365 | 0 | |||
Quarter allowances (reversals), General CECL allowance, unfunded | 429 | 2,971 | |||
Ending balance, General CECL allowance, unfunded | 3,794 | 6,059 | |||
Financing Receivable, General Allowance, Allowance for Credit Loss [Roll Forward] | |||||
General CECL Allowance | 41,467 | 0 | |||
Total quarter allowances (reversals), General CECL allowance | (1,238) | 33,465 | |||
General CECL Allowance | 40,229 | 64,332 | |||
Financing Receivable, Total Allowance for Credit Loss [Roll Forward] | |||||
Total CECL Allowance | 216,467 | 56,981 | |||
Total CECL Allowance, Quarter allowances (reversals) | (1,238) | 183,465 | |||
Total CECL Allowance | $ 215,229 | $ 271,313 | |||
General CECL allowance, % of amortized cost | 0.62% | 1.08% | 0.67% | 0.00% | |
Total CECL allowance, % of amortized cost | 3.06% | 4.05% | 3.23% | 0.00% | |
Adjustment due to Adoption of ASU | |||||
Financing Receivable, Funded, Allowance for Credit Loss [Roll Forward] | |||||
Ending balance, General CECL allowance, funded | $ 27,779 | ||||
Financing Receivable, Unfunded, Allowance for Credit Loss [Roll Forward] | |||||
Ending balance, General CECL allowance, unfunded | 3,088 | ||||
Financing Receivable, General Allowance, Allowance for Credit Loss [Roll Forward] | |||||
General CECL Allowance | 30,867 | ||||
Financing Receivable, Total Allowance for Credit Loss [Roll Forward] | |||||
Total CECL Allowance | 30,867 | ||||
Commercial Mortgage and Subordinated Portfolio Segment | |||||
Allowance and Provision for Loan Credit Loss [Abstract] | |||||
Beginning balance, specific CECL allowance, funded | $ 175,000 | 56,981 | |||
Quarter allowances (reversals), specific CECL allowance, funded | 150,000 | ||||
Ending balance, specific CECL allowance, funded | $ 175,000 | 206,981 | |||
Commercial Mortgage and Subordinated Portfolio Segment | Adjustment due to Adoption of ASU | |||||
Allowance and Provision for Loan Credit Loss [Abstract] | |||||
Ending balance, specific CECL allowance, funded | $ 0 | ||||
[1] | Comprised of $0 and $150,000 Specific CECL Allowance and $(1,238) and $33,465 of General CECL (Reversals) and Allowance for 2021 and 2020, respectively. |
Real Estate Owned and Related_3
Real Estate Owned and Related Debt, Held for Sale (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Debt Securities, Available-for-sale [Line Items] | ||
Debt related to real estate owned, held for sale | $ 33,000 | $ 33,000 |
Real estate held-for-sale, impairment | 550 | $ 0 |
Hotel - Anaheim, CA | Subordinate Mortgage Portfolio Segment | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt related to real estate owned, held for sale | $ 33,000 |
Real Estate Owned and Related_4
Real Estate Owned and Related Debt, Held for Sale - Schedule of Real Estate Owned and Related Debt, Held for Sale (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Real Estate [Abstract] | ||
Real estate owned, held for sale | $ 42,905 | $ 42,905 |
Impairment on real estate owned, held for sale | (550) | 0 |
Real Estate owned, held for sale, net of impairment | 42,355 | 42,905 |
Debt related to real estate owned, held for sale | (33,000) | (33,000) |
Real estate owned, net | $ 9,355 | $ 9,905 |
Other Assets (Details)
Other Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Interest receivable | $ 37,646 | $ 40,559 |
Collateral deposited under derivative agreements | 27,890 | 28,320 |
Loan proceeds held by servicer | 1,750 | 5,649 |
Other | 1,596 | 112 |
Total | $ 68,882 | $ 74,640 |
Secured Debt Arrangements, Ne_2
Secured Debt Arrangements, Net - Weighted Average Maturities and Interest Rates of Borrowings (Details) kr in Thousands, € in Millions, £ in Millions | 3 Months Ended | ||||||||
Mar. 31, 2021USD ($) | Mar. 31, 2020USD ($) | Mar. 31, 2021SEK (kr) | Mar. 31, 2021GBP (£) | Mar. 31, 2021EUR (€) | Dec. 31, 2020USD ($) | Jun. 30, 2020USD ($) | Dec. 31, 2019USD ($) | Nov. 30, 2017USD ($) | |
Debt Instrument [Line Items] | |||||||||
Less: deferred financing costs | $ (10,496,000) | $ (7,130,000) | |||||||
Percentage of secured debt that is recourse debt | 53.00% | 53.00% | 53.00% | 53.00% | 55.00% | ||||
Line of Credit | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum Amount of Borrowings | $ 4,260,773,000 | $ 4,395,764,000 | |||||||
Borrowings outstanding | 3,418,579,000 | 3,436,672,000 | |||||||
Less: deferred financing costs | $ (11,800,000) | (12,993,000) | |||||||
Line of Credit | Weighted Average | |||||||||
Debt Instrument [Line Items] | |||||||||
Weighted average advance rate | 64.50% | 63.70% | |||||||
Line of Credit | London Interbank Offered Rate (LIBOR) | Weighted Average | |||||||||
Debt Instrument [Line Items] | |||||||||
Weighted average rate | 2.14% | 2.16% | |||||||
Line of Credit | GBP London Interbank Offered Rate (LIBOR) | Weighted Average | |||||||||
Debt Instrument [Line Items] | |||||||||
Weighted average rate | 2.03% | 1.83% | |||||||
Line of Credit | EUR London Interbank Offered Rate (LIBOR) | Weighted Average | |||||||||
Debt Instrument [Line Items] | |||||||||
Weighted average rate | 1.46% | 1.46% | |||||||
Line of Credit | SEK London Interbank Offered Rate (LIBOR) | Weighted Average | |||||||||
Debt Instrument [Line Items] | |||||||||
Weighted average rate | 1.50% | ||||||||
Line of Credit | JP Morgan Chase, DB Repurchase Facility, Goldman Sachs, Credit Suisse and HSBC Facilities | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum Amount of Borrowings | $ 3,087,475,000 | 3,538,036,000 | |||||||
Borrowings outstanding | 2,257,081,000 | 2,591,937,000 | |||||||
Line of Credit | Deutsche Bank Repurchase Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum Amount of Borrowings | $ 700,000,000 | $ 1,000,000,000 | |||||||
Borrowings outstanding | 425,800,000 | ||||||||
Line of Credit | Goldman Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum Amount of Borrowings | $ 500,000,000 | ||||||||
Borrowings outstanding | 322,200,000 | ||||||||
Line of Credit | Barclays Securitization | |||||||||
Debt Instrument [Line Items] | |||||||||
Borrowings outstanding | kr 1,300,000 | £ 638.3 | € 122.4 | ||||||
Line of Credit | JP Morgan Chase, DB Repurchase Facility, Goldman Sachs, Credit Suisse, Barclays Facility, HSBC Facilities And Barclays Securitization | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum Amount of Borrowings | 4,260,773,000 | 4,395,764,000 | |||||||
Borrowings outstanding | $ 3,430,379,000 | 3,449,665,000 | |||||||
USD | Line of Credit | Weighted Average | |||||||||
Debt Instrument [Line Items] | |||||||||
Weighted average advance rate | 62.20% | 62.50% | |||||||
USD | Line of Credit | JP Morgan Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum Amount of Borrowings | $ 1,115,133,000 | 1,113,156,000 | |||||||
Borrowings outstanding | 911,539,000 | 984,125,000 | |||||||
USD | Line of Credit | Deutsche Bank Repurchase Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum Amount of Borrowings | 700,000,000 | 1,000,000,000 | |||||||
Borrowings outstanding | 425,803,000 | 520,457,000 | |||||||
USD | Line of Credit | Goldman Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum Amount of Borrowings | 500,000,000 | 500,000,000 | |||||||
Borrowings outstanding | 322,217,000 | 332,352,000 | |||||||
USD | Line of Credit | Credit Suisse Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum Amount of Borrowings | 230,205,000 | 374,251,000 | |||||||
Borrowings outstanding | 220,193,000 | 369,182,000 | |||||||
USD | Line of Credit | Barclays Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum Amount of Borrowings | 200,000,000 | 200,000,000 | |||||||
Borrowings outstanding | $ 35,192,000 | $ 35,192,000 | |||||||
Fx contracts - GBP | Line of Credit | |||||||||
Debt Instrument [Line Items] | |||||||||
Currency conversion rate | 1.38 | 1.38 | 1.38 | 1.38 | 1.37 | ||||
Fx contracts - GBP | Line of Credit | Weighted Average | |||||||||
Debt Instrument [Line Items] | |||||||||
Weighted average advance rate | 60.60% | 68.70% | |||||||
Fx contracts - GBP | Line of Credit | JP Morgan Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum Amount of Borrowings | $ 114,487,000 | $ 113,548,000 | |||||||
Borrowings outstanding | $ 114,487,000 | $ 113,548,000 | |||||||
Fx contracts - EUR | Line of Credit | |||||||||
Debt Instrument [Line Items] | |||||||||
Currency conversion rate | 1.17 | 1.17 | 1.17 | 1.17 | 1.22 | ||||
Fx contracts - EUR | Line of Credit | Weighted Average | |||||||||
Debt Instrument [Line Items] | |||||||||
Weighted average advance rate | 69.00% | 60.80% | |||||||
Fx contracts - EUR | Line of Credit | JP Morgan Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum Amount of Borrowings | $ 70,380,000 | $ 73,296,000 | |||||||
Borrowings outstanding | 70,380,000 | 73,296,000 | |||||||
Fx contracts - EUR | Line of Credit | HSBC Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum Amount of Borrowings | 157,270,000 | 163,785,000 | |||||||
Borrowings outstanding | $ 157,270,000 | 163,785,000 | |||||||
Kronor | Line of Credit | |||||||||
Debt Instrument [Line Items] | |||||||||
Currency conversion rate | 0.11 | 0.11 | 0.11 | 0.11 | |||||
Kronor | Line of Credit | Weighted Average | |||||||||
Debt Instrument [Line Items] | |||||||||
Weighted average advance rate | 80.80% | ||||||||
VIE | Line of Credit | Barclays Securitization | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum Amount of Borrowings | $ 1,173,298,000 | 857,728,000 | |||||||
Borrowings outstanding | 1,173,298,000 | $ 857,728,000 | $ 782,000,000 | ||||||
VIE | Line of Credit | Barclays Securitization | Weighted Average | |||||||||
Debt Instrument [Line Items] | |||||||||
Borrowings outstanding | 1,173,298,000 | ||||||||
VIE | Fx contracts - GBP | Line of Credit | Barclays Securitization | Weighted Average | |||||||||
Debt Instrument [Line Items] | |||||||||
Borrowings outstanding | 879,815,000 | ||||||||
VIE | Fx contracts - EUR | Line of Credit | Barclays Securitization | Weighted Average | |||||||||
Debt Instrument [Line Items] | |||||||||
Borrowings outstanding | $ 143,600,000 | ||||||||
VIE | Kronor | Line of Credit | Barclays Securitization | Weighted Average | |||||||||
Debt Instrument [Line Items] | |||||||||
Borrowings outstanding | kr | kr 149,883 |
Secured Debt Arrangements, Ne_3
Secured Debt Arrangements, Net - Additional Information (Details) € in Millions, £ in Millions, kr in Millions | 1 Months Ended | 3 Months Ended | ||||||||||||
Nov. 30, 2019USD ($)subsidiaryextension | Jul. 31, 2018 | Mar. 31, 2021USD ($) | Mar. 31, 2021EUR (€) | Mar. 31, 2020USD ($) | Mar. 31, 2021GBP (£) | Mar. 31, 2021EUR (€) | Mar. 31, 2021SEK (kr) | Dec. 31, 2020USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2020GBP (£) | Jun. 30, 2020EUR (€) | Dec. 31, 2019USD ($) | Nov. 30, 2017USD ($) | |
Debt Instrument [Line Items] | ||||||||||||||
Weighted average haircut under repurchase agreements | 35.50% | 35.50% | 35.50% | 35.50% | 36.30% | |||||||||
Repayments of secured debt arrangements | $ 331,613,000 | $ 844,051,000 | ||||||||||||
Line of Credit | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Maximum borrowing under facility | 4,260,773,000 | $ 4,395,764,000 | ||||||||||||
Balance | 3,430,379,000 | 3,449,665,000 | ||||||||||||
Borrowings outstanding | 3,418,579,000 | 3,436,672,000 | ||||||||||||
Line of Credit | JP Morgan Facility | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Balance | 1,096,406,000 | 1,170,969,000 | ||||||||||||
Line of Credit | JP Morgan Facility | USD | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Maximum borrowing under facility | 1,115,133,000 | 1,113,156,000 | ||||||||||||
Borrowings outstanding | 911,539,000 | 984,125,000 | ||||||||||||
Line of Credit | JP Morgan Facility | Fx contracts - GBP | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Maximum borrowing under facility | 114,487,000 | 113,548,000 | ||||||||||||
Borrowings outstanding | 114,487,000 | 113,548,000 | ||||||||||||
Line of Credit | JP Morgan Facility | Fx contracts - EUR | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Maximum borrowing under facility | 70,380,000 | 73,296,000 | ||||||||||||
Borrowings outstanding | 70,380,000 | 73,296,000 | ||||||||||||
Line of Credit | DB Repurchase Facility | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Maximum borrowing under facility | $ 700,000,000 | $ 1,000,000,000 | ||||||||||||
Extension option | 1 year | |||||||||||||
Balance | 425,803,000 | 520,457,000 | ||||||||||||
Borrowings outstanding | 425,800,000 | |||||||||||||
Line of Credit | DB Repurchase Facility | USD | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Maximum borrowing under facility | 700,000,000 | 1,000,000,000 | ||||||||||||
Borrowings outstanding | 425,803,000 | 520,457,000 | ||||||||||||
Line of Credit | Goldman Sachs Repurchase Facility | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Maximum borrowing under facility | $ 500,000,000 | |||||||||||||
Balance | 322,217,000 | 332,352,000 | ||||||||||||
Borrowings outstanding | 322,200,000 | |||||||||||||
Line of Credit | Goldman Sachs Repurchase Facility | USD | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Maximum borrowing under facility | 500,000,000 | 500,000,000 | ||||||||||||
Borrowings outstanding | 322,217,000 | 332,352,000 | ||||||||||||
Line of Credit | Credit Suisse Facility | USD | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Maximum borrowing under facility | 230,205,000 | 374,251,000 | ||||||||||||
Balance | 220,193,000 | 369,182,000 | ||||||||||||
Borrowings outstanding | 220,193,000 | 369,182,000 | ||||||||||||
Term after either party notifies the other party of intention to terminate | 6 months | |||||||||||||
Line of Credit | Credit Suisse Facility | Fx contracts - GBP | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Balance | 0 | |||||||||||||
Line of Credit | HSBC Facility | USD | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Balance | 0 | |||||||||||||
Line of Credit | HSBC Facility | Fx contracts - GBP | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Balance | 0 | |||||||||||||
Line of Credit | HSBC Facility | Fx contracts - EUR | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Maximum borrowing under facility | 157,270,000 | 163,785,000 | ||||||||||||
Balance | 157,270,000 | 163,785,000 | ||||||||||||
Borrowings outstanding | 157,270,000 | 163,785,000 | ||||||||||||
Line of credit, amount outstanding | 157,300,000 | € 134.1 | ||||||||||||
Line of Credit | Barclays Facility | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Repayments of secured debt arrangements | € | € 16.5 | |||||||||||||
Line of Credit | Barclays Facility | USD | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Maximum borrowing under facility | 200,000,000 | 200,000,000 | ||||||||||||
Balance | 35,192,000 | 35,192,000 | ||||||||||||
Borrowings outstanding | 35,192,000 | 35,192,000 | ||||||||||||
Line of Credit | Barclays Facility | Fx contracts - GBP | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Balance | 0 | |||||||||||||
Line of Credit | Barclays Facility | Fx contracts - EUR | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Balance | 0 | |||||||||||||
Line of Credit | Barclays Securitization | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Balance | 1,173,298,000 | 857,728,000 | ||||||||||||
Borrowings outstanding | £ 638.3 | 122.4 | kr 1,300 | |||||||||||
Line of Credit | Barclays Securitization | VIE | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Maximum borrowing under facility | 1,173,298,000 | 857,728,000 | ||||||||||||
Balance | £ 26 | € 5.3 | ||||||||||||
Borrowings outstanding | $ 1,173,298,000 | $ 857,728,000 | $ 782,000,000 | |||||||||||
Deferring or waiving debt service payments, term | 18 months | 18 months | ||||||||||||
Repayments of secured debt arrangements | $ 18,500,000 | |||||||||||||
Increase in financing spread | 0.25% | 0.25% | ||||||||||||
Amended and Restated JPMorgan Facility | Line of Credit | JP Morgan Facility | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Number of subsidiaries | subsidiary | 3 | |||||||||||||
Maximum borrowing under facility | $ 1,300,000,000 | |||||||||||||
Number of extensions available | extension | 2 | |||||||||||||
Extension option | 1 year | 1 year | ||||||||||||
Balance | $ 1,100,000,000 | 83.1 | € 60 | |||||||||||
Commercial Loan One | Line of Credit | Barclays Securitization | VIE | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Balance | 227,400,000 | £ 165 | ||||||||||||
Commercial Loan Two | Line of Credit | Barclays Securitization | VIE | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Balance | $ 187,400,000 | kr 1,600 |
Secured Debt Arrangements, Ne_4
Secured Debt Arrangements, Net - Assets Under Barclays Private Securitization (Details) - Line of Credit kr in Thousands, $ in Thousands, € in Millions, £ in Millions | Mar. 31, 2021USD ($) | Mar. 31, 2021GBP (£) | Mar. 31, 2021EUR (€) | Mar. 31, 2021SEK (kr) | Dec. 31, 2020USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2020GBP (£) | Jun. 30, 2020EUR (€) |
Debt Instrument [Line Items] | ||||||||
Borrowings outstanding | $ 3,418,579 | $ 3,436,672 | ||||||
Balance | 3,430,379 | 3,449,665 | ||||||
Barclays Securitization | ||||||||
Debt Instrument [Line Items] | ||||||||
Borrowings outstanding | £ 638.3 | € 122.4 | kr 1,300,000 | |||||
Balance | 1,173,298 | 857,728 | ||||||
VIE | Barclays Securitization | ||||||||
Debt Instrument [Line Items] | ||||||||
Borrowings outstanding | 1,173,298 | $ 857,728 | $ 782,000 | |||||
Balance | £ 26 | € 5.3 | ||||||
Weighted Average | VIE | Barclays Securitization | ||||||||
Debt Instrument [Line Items] | ||||||||
Borrowings outstanding | 1,173,298 | |||||||
Weighted Average | VIE | Fx contracts - GBP | Barclays Securitization | ||||||||
Debt Instrument [Line Items] | ||||||||
Borrowings outstanding | 879,815 | |||||||
Weighted Average | VIE | Fx contracts - EUR | Barclays Securitization | ||||||||
Debt Instrument [Line Items] | ||||||||
Borrowings outstanding | $ 143,600 | |||||||
Weighted Average | VIE | Kronor | Barclays Securitization | ||||||||
Debt Instrument [Line Items] | ||||||||
Borrowings outstanding | kr | kr 149,883 |
Secured Debt Arrangements, Ne_5
Secured Debt Arrangements, Net - Schedule of Assets and Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Jan. 01, 2020 | Dec. 31, 2019 | |
Assets: | ||||||
Commercial mortgage loans, net | $ 6,820,074 | $ 6,496,977 | $ 6,430,618 | |||
Other assets | 68,882 | 74,640 | ||||
Total Assets | 7,225,371 | 6,940,020 | ||||
Liabilities: | ||||||
Secured debt arrangements, net (net of deferred financing costs of $2.3 million and $0.7 million in 2021 and 2020, respectively) | 775,974 | |||||
Accounts payable, accrued expenses and other liabilities | [1] | 74,899 | 74,887 | |||
Total Liabilities | 4,949,618 | 4,669,491 | ||||
Allowance reserve | 36,435 | 38,102 | 58,273 | |||
Off-balance sheet, credit loss, liability | 3,794 | 3,365 | $ 6,059 | $ 3,365 | $ 0 | |
Commercial Mortgage Portfolio Segment | ||||||
Assets: | ||||||
Commercial mortgage loans, net | [2],[3] | 5,754,258 | 5,451,084 | |||
Liabilities: | ||||||
Allowance reserve | 18,210 | $ 17,012 | ||||
VIE | ||||||
Assets: | ||||||
Cash | 2,572 | 2,020 | ||||
Commercial mortgage loans, net | 1,712,897 | 1,290,393 | ||||
Other assets | 6,837 | 15,831 | ||||
Total Assets | 1,722,306 | 1,308,244 | ||||
Liabilities: | ||||||
Secured debt arrangements, net (net of deferred financing costs of $2.3 million and $0.7 million in 2021 and 2020, respectively) | 1,171,036 | 857,043 | ||||
Accounts payable, accrued expenses and other liabilities | 2,310 | 1,307 | ||||
Total Liabilities | 1,173,346 | 858,350 | ||||
Deferred financing costs | 2,300 | 700 | ||||
VIE | Commercial Mortgage Portfolio Segment | ||||||
Liabilities: | ||||||
Allowance reserve | 7,400 | 4,400 | ||||
Off-balance sheet, credit loss, liability | $ 1,200 | $ 300 | ||||
[1] | Includes $3,794 and $3,365 of General CECL Allowance related to unfunded commitments on commercial mortgage loans, subordinate loans and other lending assets, net in 2021 and 2020, respectively. | |||||
[2] | Includes $5,319,621 and $5,418,999 pledged as collateral under secured debt arrangements in 2021 and 2020, respectively | |||||
[3] | Net of $211,435 and $213,102 CECL Allowances in 2021 and 2020, respectively, comprised of $175,000 Specific CECL Allowance and $36,435 and $38,102 General CECL Allowance, respectively. |
Secured Debt Arrangements, Ne_6
Secured Debt Arrangements, Net - Schedule of Net Income (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | ||
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items] | |||
Interest income from commercial mortgage loans | $ 75,356 | $ 81,855 | |
Interest expense | (35,664) | (41,205) | |
Net interest income | 71,151 | 74,668 | |
General and administrative expenses | (6,940) | (6,531) | |
Provision for loan losses and impairments | [1] | 1,238 | (183,465) |
Foreign currency translation loss | (7,449) | (37,949) | |
Net income (loss) | 58,335 | $ (127,842) | |
VIE | |||
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items] | |||
Interest income from commercial mortgage loans | 16,093 | ||
Interest expense | (4,590) | ||
Net interest income | 11,503 | ||
General and administrative expenses | (1) | ||
Provision for loan losses and impairments | (3,628) | ||
Foreign currency translation loss | (912) | ||
Net income (loss) | $ 6,962 | ||
[1] | Comprised of $0 and $150,000 Specific CECL Allowance and $(1,238) and $33,465 of General CECL (Reversals) and Allowance for 2021 and 2020, respectively. |
Secured Debt Arrangements, Ne_7
Secured Debt Arrangements, Net - Remaining Maturities of Borrowings (Details) $ in Thousands | Mar. 31, 2021USD ($) |
Line of Credit Facility [Line Items] | |
Total | $ 775,974 |
Line of Credit | |
Line of Credit Facility [Line Items] | |
Less than 1 year | 754,645 |
1 to 3 years | 1,589,233 |
3 to 5 years | 1,086,501 |
More than 5 years | 0 |
Total | 3,430,379 |
Line of Credit | JPMorgan | |
Line of Credit Facility [Line Items] | |
Less than 1 year | 96,740 |
1 to 3 years | 381,359 |
3 to 5 years | 618,307 |
More than 5 years | 0 |
Total | 1,096,406 |
Line of Credit | DB | |
Line of Credit Facility [Line Items] | |
Less than 1 year | 0 |
1 to 3 years | 425,803 |
3 to 5 years | 0 |
More than 5 years | 0 |
Total | 425,803 |
Line of Credit | Goldman | |
Line of Credit Facility [Line Items] | |
Less than 1 year | 322,217 |
1 to 3 years | 0 |
3 to 5 years | 0 |
More than 5 years | 0 |
Total | 322,217 |
Line of Credit | CS Facility | USD | |
Line of Credit Facility [Line Items] | |
Less than 1 year | 42,205 |
1 to 3 years | 40,500 |
3 to 5 years | 137,488 |
More than 5 years | 0 |
Total | 220,193 |
Line of Credit | HSBC Facility | Fx contracts - EUR | |
Line of Credit Facility [Line Items] | |
Less than 1 year | 0 |
1 to 3 years | 157,270 |
3 to 5 years | 0 |
More than 5 years | 0 |
Total | 157,270 |
Line of Credit | Barclays Facility | USD | |
Line of Credit Facility [Line Items] | |
Less than 1 year | 0 |
1 to 3 years | 35,192 |
3 to 5 years | 0 |
More than 5 years | 0 |
Total | 35,192 |
Line of Credit | Barclays Securitization | |
Line of Credit Facility [Line Items] | |
Less than 1 year | 293,483 |
1 to 3 years | 549,109 |
3 to 5 years | 330,706 |
More than 5 years | 0 |
Total | $ 1,173,298 |
Secured Debt Arrangements, Ne_8
Secured Debt Arrangements, Net - Summary of Outstanding Balances, Maximum and Average Balances of Borrowings (Details) - Line of Credit - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Line of Credit Facility [Line Items] | ||
Balance | $ 3,430,379 | $ 3,449,665 |
Amortized Cost of Collateral | 5,319,621 | 5,418,999 |
JPMorgan | ||
Line of Credit Facility [Line Items] | ||
Balance | 1,096,406 | 1,170,969 |
Amortized Cost of Collateral | 1,855,536 | 2,009,249 |
Maximum Month-End Balance | 1,172,308 | 1,192,288 |
Average Month-End Balance | 1,146,506 | 1,119,997 |
DB | ||
Line of Credit Facility [Line Items] | ||
Balance | 425,803 | 520,457 |
Amortized Cost of Collateral | 658,672 | 814,715 |
Maximum Month-End Balance | 520,217 | 526,743 |
Average Month-End Balance | 488,746 | 506,831 |
Goldman | ||
Line of Credit Facility [Line Items] | ||
Balance | 322,217 | 332,352 |
Amortized Cost of Collateral | 501,146 | 510,371 |
Maximum Month-End Balance | 331,154 | 362,139 |
Average Month-End Balance | 327,536 | 343,621 |
CS Facility | USD | ||
Line of Credit Facility [Line Items] | ||
Balance | 220,193 | 369,182 |
Amortized Cost of Collateral | 331,053 | 524,139 |
Maximum Month-End Balance | 369,182 | 378,781 |
Average Month-End Balance | 318,853 | 348,464 |
CS Facility | Fx contracts - GBP | ||
Line of Credit Facility [Line Items] | ||
Balance | 0 | |
Amortized Cost of Collateral | 0 | |
Maximum Month-End Balance | 90,111 | |
Average Month-End Balance | 43,094 | |
HSBC Facility | USD | ||
Line of Credit Facility [Line Items] | ||
Balance | 0 | |
Amortized Cost of Collateral | 0 | |
Maximum Month-End Balance | 50,625 | |
Average Month-End Balance | 44,000 | |
HSBC Facility | Fx contracts - GBP | ||
Line of Credit Facility [Line Items] | ||
Balance | 0 | |
Amortized Cost of Collateral | 0 | |
Maximum Month-End Balance | 34,500 | |
Average Month-End Balance | 20,563 | |
HSBC Facility | Fx contracts - EUR | ||
Line of Credit Facility [Line Items] | ||
Balance | 157,270 | 163,785 |
Amortized Cost of Collateral | 207,182 | 215,509 |
Maximum Month-End Balance | 162,715 | 163,788 |
Average Month-End Balance | 160,628 | 154,725 |
Barclays Facility | USD | ||
Line of Credit Facility [Line Items] | ||
Balance | 35,192 | 35,192 |
Amortized Cost of Collateral | 50,057 | 49,993 |
Maximum Month-End Balance | 35,193 | 35,193 |
Average Month-End Balance | 35,193 | 29,327 |
Barclays Facility | Fx contracts - GBP | ||
Line of Credit Facility [Line Items] | ||
Balance | 0 | |
Amortized Cost of Collateral | 0 | |
Maximum Month-End Balance | 666,810 | |
Average Month-End Balance | 260,692 | |
Barclays Facility | Fx contracts - EUR | ||
Line of Credit Facility [Line Items] | ||
Balance | 0 | |
Amortized Cost of Collateral | 0 | |
Maximum Month-End Balance | 180,595 | |
Average Month-End Balance | 70,521 | |
Barclays Securitization | ||
Line of Credit Facility [Line Items] | ||
Balance | 1,173,298 | 857,728 |
Amortized Cost of Collateral | 1,715,975 | 1,295,023 |
Maximum Month-End Balance | 1,173,298 | 857,728 |
Average Month-End Balance | $ 1,023,076 | $ 823,915 |
Senior Secured Term Loan, Net_2
Senior Secured Term Loan, Net (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
May 31, 2019 | Mar. 31, 2021 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | |||||
Repayments of senior secured term loan principal | $ 1,250,000 | $ 1,250,000 | |||
Deferred financing costs | 10,496,000 | $ 7,130,000 | |||
Realized loss on interest rate swap | $ (357,000) | $ 35,548,000 | |||
2026 Term Loan | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 2.75% | 2.75% | |||
Repayments of senior secured term loan principal | $ 1,300,000 | ||||
Deferred financing costs | 6,703,000 | $ 7,130,000 | |||
Interest Rate Swap | |||||
Debt Instrument [Line Items] | |||||
Realized loss on interest rate swap | 53,900,000 | ||||
Interest rate cap | |||||
Debt Instrument [Line Items] | |||||
Debt interest rate cap | 3 years | ||||
London Interbank Offered Rate (LIBOR) | Interest Rate Swap | |||||
Debt Instrument [Line Items] | |||||
Fixed interest rate | 2.12% | ||||
London Interbank Offered Rate (LIBOR) | Interest rate cap | |||||
Debt Instrument [Line Items] | |||||
Fixed interest rate | 0.75% | ||||
Secured Debt | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | $ 500,000,000 | $ 300,000,000 | |||
Debt instrument, issuance price as a percentage | 99.50% | 99.00% | |||
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% | 3.50% | |||
Secured Debt | Interest rate cap | |||||
Debt Instrument [Line Items] | |||||
Deferred financing costs | $ 1,100,000 | ||||
Secured Debt | London Interbank Offered Rate (LIBOR) | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 2.75% | ||||
Secured Debt | London Interbank Offered Rate (LIBOR) | Minimum | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 0.50% | ||||
Secured Debt | London Interbank Offered Rate (LIBOR) | Maximum | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 3.50% |
Senior Secured Term Loan, Net -
Senior Secured Term Loan, Net - Term Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | ||
Principal Amount | $ 791,250 | |
Unamortized discount | (4,780) | |
Less: deferred financing costs | (10,496) | $ (7,130) |
Carrying Value | 775,974 | |
2026 Term Loan | ||
Debt Instrument [Line Items] | ||
Principal Amount | 491,250 | 492,500 |
Unamortized discount | (1,816) | (1,905) |
Less: deferred financing costs | (6,703) | (7,130) |
Carrying Value | $ 482,731 | $ 483,465 |
Weighted average rate | 2.75% | 2.75% |
2028 Term Loan | ||
Debt Instrument [Line Items] | ||
Principal Amount | $ 300,000 | |
Unamortized discount | (2,964) | |
Less: deferred financing costs | (3,793) | |
Carrying Value | $ 293,243 | |
Weighted average rate | 3.50% |
Convertible Senior Notes, Net_2
Convertible Senior Notes, Net (Details) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2021USD ($)$ / shares | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($)offering | |
Debt Instrument [Line Items] | |||
Unamortized discount | $ 4,780,000 | ||
Common Stock | |||
Debt Instrument [Line Items] | |||
Share price (in dollars per share) | $ / shares | $ 13.97 | ||
Convertible Debt | |||
Debt Instrument [Line Items] | |||
Debt instrument, face amount | $ 575,000,000 | ||
Interest expense | 7,200,000 | ||
Non-cash interest expense | 1,500,000 | ||
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 | 2022 Notes | |||
Debt Instrument [Line Items] | |||
Number of debt offerings issued | offering | 2 | ||
Debt instrument, face amount | $ 345,000,000 | $ 345,000,000 | |
Stated interest rate | 4.75% | 4.75% | |
Proceeds from issuance of Notes | $ 337,500,000 | ||
Convertible senior notes, net | $ 341,000,000 | ||
Unamortized discount | 4,000,000 | ||
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] | |||
Debt instrument, face amount | $ 230,000,000 | $ 230,000,000 | |
Stated interest rate | 5.38% | 5.375% | |
Proceeds from issuance of Notes | $ 223,700,000 | ||
Convertible senior notes, net | $ 225,700,000 | ||
Unamortized discount | 4,300,000 | ||
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 | ||
Mar. 31, 2021USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Debt Instrument [Line Items] | |||
Principal Amount | $ 575,000,000 | ||
Conversion rate basis, principal amount | 1,000 | ||
2022 Notes | |||
Debt Instrument [Line Items] | |||
Principal Amount | $ 345,000,000 | $ 345,000,000 | |
Coupon Rate | 4.75% | 4.75% | |
Effective Rate | 5.60% | ||
Conversion Rate | 0.0502260 | ||
Remaining Period of Amortization | 1 year 4 months 24 days | ||
2023 Notes | |||
Debt Instrument [Line Items] | |||
Principal Amount | $ 230,000,000 | $ 230,000,000 | |
Coupon Rate | 5.38% | 5.375% | |
Effective Rate | 6.16% | ||
Conversion Rate | 0.0487187 | ||
Remaining Period of Amortization | 2 years 6 months 14 days |
Derivatives - Summary of Non-De
Derivatives - Summary of Non-Designated Foreign Exchange Forwards (Details) - Not Designated as Hedging Instrument $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021USD ($)contract | Dec. 31, 2020USD ($)contract | |
Interest Rate Swap | ||
Derivative [Line Items] | ||
Number of Contracts | contract | 1 | 1 |
Aggregate Notional Amount (in thousands) | $ | $ 500,000 | $ 500,000 |
Weighted-Average Years to Maturity | 2 years 2 months 15 days | 2 years 5 months 26 days |
Fx contracts - GBP | Foreign currency forward, net | ||
Derivative [Line Items] | ||
Number of Contracts | contract | 107 | 93 |
Aggregate Notional Amount (in thousands) | $ | $ 500,901 | $ 428,493 |
Weighted-Average Years to Maturity | 2 years 1 month 13 days | 2 years 14 days |
Fx contracts - EUR | Foreign currency forward, net | ||
Derivative [Line Items] | ||
Number of Contracts | contract | 66 | 69 |
Aggregate Notional Amount (in thousands) | $ | $ 237,519 | $ 239,466 |
Weighted-Average Years to Maturity | 2 years 4 months 13 days | 2 years 7 months 9 days |
Kronor | Foreign currency forward, net | ||
Derivative [Line Items] | ||
Number of Contracts | contract | 20 | |
Aggregate Notional Amount (in thousands) | $ | $ 604,372 | |
Weighted-Average Years to Maturity | 4 years 25 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 | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | Jun. 30, 2020 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Unrealized gain (loss) on derivative instruments - unrealized interest rate swap | $ 10,859,000 | $ 26,888,000 | ||
Gain (loss) on sale of derivatives | 357,000 | (35,548,000) | ||
Foreign currency forward, net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Unrealized gain (loss) on derivative instruments - unrealized interest rate swap | 10,502,000 | 62,436,000 | ||
Gain (loss) on sale of derivatives | 9,800,000 | 70,491,000 | ||
Foreign currency forward, net | Gain (Loss) on Derivative Instruments | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) on derivative instruments - interest rate swap realized | (702,000) | 8,055,000 | ||
Interest rate cap and swaps | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) on sale of derivatives | 357,000 | (35,548,000) | ||
Interest rate cap | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative notional amount | $ 1,100,000 | |||
Interest rate cap | Gain (Loss) on Derivative Instruments | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) on derivative instruments - interest rate swap realized | 357,000 | 0 | ||
Derivative notional amount | 500,000,000 | 0 | ||
Interest Rate Swap, Instrument One | Gain (Loss) on Derivative Instruments | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Unrealized gain (loss) on derivative instruments - unrealized interest rate swap | 0 | (35,548,000) | ||
Interest Rate Swap | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) on sale of derivatives | $ (53,900,000) | |||
Interest Rate Swap | Gain (Loss) on Derivative Instruments | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative notional amount | $ 0 | $ 500,000,000 |
Derivatives - Additional Inform
Derivatives - Additional Information (Details) - USD ($) $ in Millions | Jun. 30, 2020 | May 31, 2019 |
Secured Debt | ||
Derivative [Line Items] | ||
Effective interest rate | 3.50% | 4.87% |
Interest rate cap asset | ||
Derivative [Line Items] | ||
Derivative notional amount | $ 1.1 | |
London Interbank Offered Rate (LIBOR) | Interest Rate Swap | ||
Derivative [Line Items] | ||
Fixed interest rate | 2.12% | |
London Interbank Offered Rate (LIBOR) | Interest rate cap asset | ||
Derivative [Line Items] | ||
Fixed interest rate | 0.75% | |
Cap interest rate | 0.75% |
Derivatives - Summarizes Gross
Derivatives - Summarizes Gross Asset and Liability Amounts Related to Derivatives (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Derivative [Line Items] | ||
Gross Amount of Recognized Liability | $ 25,994 | $ 32,172 |
Gross Amounts Offset in our Condensed Consolidated Balance Sheet | (5,612) | (931) |
Net Amounts of Liability Presented in our Condensed Consolidated Balance Sheet | 20,382 | 31,241 |
Forward currency contracts | ||
Derivative [Line Items] | ||
Gross Amount of Recognized Liability | 25,994 | 32,172 |
Gross Amounts Offset in our Condensed Consolidated Balance Sheet | (5,121) | (797) |
Net Amounts of Liability Presented in our Condensed Consolidated Balance Sheet | 20,873 | 31,375 |
Interest rate cap asset | ||
Derivative [Line Items] | ||
Gross Amount of Recognized Liability | 0 | 0 |
Gross Amounts Offset in our Condensed Consolidated Balance Sheet | (491) | (134) |
Net Amounts of Liability Presented in our Condensed Consolidated Balance Sheet | $ (491) | $ (134) |
Participations Sold (Details)
Participations Sold (Details) $ in Thousands, £ in Millions | Mar. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2020GBP (£) | Oct. 31, 2020USD ($) | Mar. 31, 2020USD ($) |
Participating Mortgage Loans [Line Items] | |||||
Total carrying value, net | $ 6,820,074 | $ 6,496,977 | $ 6,430,618 | ||
Mezzanine, Amortized cost | Secured Debt | |||||
Participating Mortgage Loans [Line Items] | |||||
Total carrying value, net | 97,100 | £ 70.5 | $ 88,500 | ||
Mezzanine, Amortized cost | Ground-up Condominium Development - New York | |||||
Participating Mortgage Loans [Line Items] | |||||
Debt instrument, face amount | $ 25,000 | ||||
Mezzanine, Amortized cost | Office Building - London | |||||
Participating Mortgage Loans [Line Items] | |||||
Debt instrument, face amount | 8,900 | 6.7 | |||
Remaining unfunded commitment | $ 25,300 | £ 19.1 |
Participations Sold - Schedule
Participations Sold - Schedule of participations sold (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Participating Mortgage Loans [Line Items] | |||
Participations sold | $ 50,709 | $ 34,974 | |
Payment in kind interest | 16,800 | $ 12,400 | |
Commercial Mortgage Portfolio Segment | |||
Participating Mortgage Loans [Line Items] | |||
Participations sold | 23,974 | 9,217 | |
Subordinate Mortgage Portfolio Segment | |||
Participating Mortgage Loans [Line Items] | |||
Participations sold | $ 26,735 | 25,757 | |
Payment in kind interest | $ 1,000 | $ 800 |
Accounts Payable, Accrued Exp_3
Accounts Payable, Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Jan. 01, 2020 | Dec. 31, 2019 | |
Payables and Accruals [Abstract] | ||||||
Accrued dividends payable | $ 52,615 | $ 52,768 | ||||
Accrued interest payable | 13,503 | 13,979 | ||||
Accounts payable and other liabilities | 4,987 | 4,775 | ||||
General CECL allowance related to unfunded commitments | 3,794 | 3,365 | $ 6,059 | $ 3,365 | $ 0 | |
Total | [1] | $ 74,899 | $ 74,887 | |||
[1] | Includes $3,794 and $3,365 of General CECL Allowance related to unfunded commitments on commercial mortgage loans, subordinate loans and other lending assets, net in 2021 and 2020, respectively. |
Related Party Transactions (Det
Related Party Transactions (Details) $ in Thousands, £ in Millions | 1 Months Ended | 3 Months Ended | ||||
Mar. 31, 2021USD ($) | Jan. 31, 2020USD ($) | Jan. 31, 2020GBP (£) | Mar. 31, 2021USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2020USD ($) | |
Related Party Transaction [Line Items] | ||||||
Related party expenses | $ 9,364 | $ 10,268 | ||||
Base management fees incurred but not yet paid | $ 9,364 | $ 9,364 | $ 9,598 | |||
Sale of Mezzanine Loan | ||||||
Related Party Transaction [Line Items] | ||||||
Proceeds from sale of loan | $ 81,300 | £ 62.2 | ||||
Sale of Unfunded Commitment of Senior Mortgage | ||||||
Related Party Transaction [Line Items] | ||||||
Proceeds from sale of loan | $ 65,300 | £ 50 | ||||
Arrangement fees | ||||||
Related Party Transaction [Line Items] | ||||||
Related party expenses | 200 | |||||
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 | 9,400 | $ 9,400 | $ 9,600 | |||
Affiliated Entity | ||||||
Related Party Transaction [Line Items] | ||||||
Debt instrument, face amount | $ 30,000 | 30,000 | ||||
Affiliated Entity | Management fees | ||||||
Related Party Transaction [Line Items] | ||||||
Related party expenses | 9,400 | 10,300 | ||||
Affiliated Entity | Reimbursements | ||||||
Related Party Transaction [Line Items] | ||||||
Related party expenses | $ 600 | $ 700 |
Share-Based Payments - Addition
Share-Based Payments - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Apr. 16, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Recognized stock-based compensation expense | $ 4,387 | $ 4,263 | |
RSU | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized stock-based compensation expense | $ 29,800 | ||
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 (in shares) | 553,008 | 503,251 | |
LTIP | RSU | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock units vested (in shares) | 953,397 | 868,157 | |
Adjustments to additional paid in capital, income tax deficiency from share-based compensation | $ 4,400 | $ 6,500 |
Share-Based Payments - Summary
Share-Based Payments - Summary of Grants, Exchanges and Forfeitures of Restricted Stock and RSUs (Details) - LTIP | 3 Months Ended |
Mar. 31, 2021USD ($)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 | $ | |
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) | 82,235 |
Granted (in shares) | 0 |
Vested (in shares) | 0 |
Forfeitures (in shares) | 0 |
Outstanding, ending balance (in shares) | 82,235 |
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) | 2,455,853 |
Granted (in shares) | 0 |
Vested (in shares) | 0 |
Forfeitures (in shares) | (35,016) |
Outstanding, ending balance (in shares) | 2,420,837 |
Share-Based Payments - Summar_2
Share-Based Payments - Summary of Restricted Stock and RSU Vesting Dates (Details) - LTIP | Mar. 31, 2021shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares vesting (in shares) | 2,503,072 |
2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares vesting (in shares) | 1,222,807 |
2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares vesting (in shares) | 824,066 |
2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares vesting (in shares) | 456,199 |
Restricted Stock | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares vesting (in shares) | 82,235 |
Restricted Stock | 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares vesting (in shares) | 82,235 |
Restricted Stock | 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares vesting (in shares) | 0 |
Restricted Stock | 2023 | |
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) | 2,420,837 |
RSU | 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares vesting (in shares) | 1,140,572 |
RSU | 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares vesting (in shares) | 824,066 |
RSU | 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares vesting (in shares) | 456,199 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | |
Class of Stock [Line Items] | ||
Common stock, shares authorized | 450,000,000 | 450,000,000 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 50,000,000 | 50,000,000 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares issued | 139,848,875 | 139,295,867 |
Common stock, shares, outstanding (in shares) | 139,848,875 | 139,295,867 |
Preferred stock, shares issued | 6,770,393 | 6,770,393 |
Preferred stock, shares outstanding | 6,770,393 | 6,770,393 |
Remaining authorized repurchase amount | $ 172.2 | |
Series B Preferred Stock | ||
Class of Stock [Line Items] | ||
Preferred stock, fixed-to-floating percentage | 8.00% |
Stockholders' Equity - Dividend
Stockholders' Equity - Dividends Declared (Details) - $ / shares | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Class of Stock [Line Items] | ||
Dividends declared (in dollars per share) | $ 0.35 | $ 0.40 |
Dividends declared (in dollars per share) | 0.50 | 0.50 |
Common Stock | ||
Class of Stock [Line Items] | ||
Dividends declared (in dollars per share) | 0.35 | 0.40 |
Series B Preferred Stock | ||
Class of Stock [Line Items] | ||
Dividends declared (in dollars per share) | $ 0.50 | $ 0.50 |
Stockholders' Equity - Common S
Stockholders' Equity - Common Stock Repurchases (Details) - $ / shares | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Equity [Abstract] | ||
Shares repurchased (in shares) | 0 | 300,000 |
Share repurchase, average price per share (in dollars per share) | $ 0 | $ 8.11 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | |
Schedule of Equity Method Investments [Line Items] | ||
Total damages including punitive | $ 70,000 | |
Damages sought by plaintiff | 700,000 | |
Unfunded loan commitments | 1,402,474 | $ 1,399,989 |
Commercial Mortgage and Subordinated Portfolio Segment | ||
Schedule of Equity Method Investments [Line Items] | ||
Unfunded loan commitments | $ 1,400,000 | |
Term of unfunded loan commitment | 4 years |
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 | Mar. 31, 2021 | Dec. 31, 2020 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Participations sold | $ (50,709) | $ (34,974) |
Debt related to real estate owned, held for sale | (33,000) | (33,000) |
Commercial Mortgage Portfolio Segment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Participations sold | (23,974) | (9,217) |
Subordinate Mortgage Portfolio Segment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Participations sold | (26,735) | (25,757) |
Carrying Value | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Cash and cash equivalents | 294,060 | 325,498 |
Carrying Value | Level III | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Secured debt arrangements, net | (3,418,579) | (3,436,672) |
Senior secured term loan, net | (775,974) | (483,465) |
Participations sold | (50,709) | (34,974) |
Debt related to real estate owned, held for sale | (33,000) | (33,000) |
Carrying Value | Level III | 2022 Notes | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes | (341,035) | (340,361) |
Carrying Value | Level III | 2023 Notes | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes | (225,676) | (225,293) |
Carrying Value | Level III | Commercial Mortgage Portfolio Segment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 5,754,258 | 5,451,084 |
Carrying Value | Level III | Subordinate Mortgage Portfolio Segment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 1,065,816 | 1,045,893 |
Estimate of Fair Value Measurement | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Cash and cash equivalents | 294,060 | 325,498 |
Estimate of Fair Value Measurement | Level III | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Secured debt arrangements, net | (3,418,579) | (3,436,672) |
Senior secured term loan, net | (781,767) | (475,263) |
Participations sold | (50,646) | (34,919) |
Debt related to real estate owned, held for sale | (33,000) | (33,000) |
Estimate of Fair Value Measurement | Level III | 2022 Notes | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes | (342,764) | (327,381) |
Estimate of Fair Value Measurement | Level III | 2023 Notes | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes | (226,870) | (214,875) |
Estimate of Fair Value Measurement | Level III | Commercial Mortgage Portfolio Segment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 5,679,416 | 5,361,948 |
Estimate of Fair Value Measurement | Level III | Subordinate Mortgage Portfolio Segment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | $ 1,058,560 | $ 1,027,582 |
Net Income (Loss) per Share - B
Net Income (Loss) per Share - Basic and Diluted Net Income per Share of Common Stock Using Two-Class Method (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Basic Earnings | ||
Net income (loss) | $ 58,335 | $ (127,842) |
Less: Preferred dividends | (3,385) | (3,385) |
Net income (loss) available to common stockholders | 54,950 | (131,227) |
Less: Dividends on participating securities | (847) | (802) |
Basic Earnings | 54,103 | (132,029) |
Diluted Earnings | ||
Net income available to common stockholders | 54,103 | (132,029) |
Add: Dividends on participating securities | 847 | 0 |
Add: Interest expense on Notes | 8,245 | 0 |
Diluted Earnings | $ 63,195 | $ (132,029) |
Number of Shares: | ||
Basic weighted-average shares of common stock outstanding (in shares) | 139,805,863 | 153,948,191 |
Diluted weighted-average shares of common stock outstanding (in shares) | 170,792,684 | 153,948,191 |
Earnings Per Share Attributable to Common Stockholders | ||
Basic (in dollars per share) | $ 0.39 | $ (0.86) |
Diluted (in dollars per share) | $ 0.37 | $ (0.86) |
Net Income (Loss) per Share - A
Net Income (Loss) per Share - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2021shares | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |
Effect of dilutive securities - Convertible Notes (in shares) | 28,533,271 |
RSU | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |
Effect of dilutive securities - Convertible Notes (in shares) | 2,005,291 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event $ in Millions | 1 Months Ended |
Apr. 22, 2021USD ($) | |
Subsequent Event [Line Items] | |
Funded amount of mortgages | $ 29.6 |
Proceeds from loan repayments | $ 8.9 |