Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2022 | Oct. 31, 2022 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-40923 | |
Entity Registrant Name | FRANKLIN BSP REALTY TRUST, INC. | |
Entity Incorporation, State or Country Code | MD | |
Entity Tax Identification Number | 46-1406086 | |
Entity Address, Address Line One | 1345 Avenue of the Americas | |
Entity Address, Address Line Two | Suite 32A | |
Entity Address, City or Town | New York | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10105 | |
City Area Code | 212 | |
Local Phone Number | 588-6770 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 82,479,743 | |
Entity Central Index Key | 0001562528 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Common Stock | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | FBRT | |
Security Exchange Name | NYSE | |
Series E Preferred Stock | ||
Document Information [Line Items] | ||
Title of 12(b) Security | 7.50% Series E Cumulative Redeemable Preferred Stock, par value $0.01 per share | |
Trading Symbol | FBRT PRE | |
Security Exchange Name | NYSE |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 | |
ASSETS | |||
Cash and cash equivalents | $ 216,985 | $ 154,929 | |
Restricted cash | 45,013 | 13,270 | |
Commercial mortgage loans, held for investment, net of allowance of $46,815 and $15,827 as of September 30, 2022 and December 31, 2021, respectively | 5,281,458 | 4,211,061 | |
Commercial mortgage loans, held for sale, measured at fair value | 41,342 | 34,718 | |
Real estate securities, trading, measured at fair value | 252,491 | 4,566,871 | |
Real estate securities, available for sale, measured at fair value, amortized cost of $74,998 as of September 30, 2022 | 74,625 | 0 | |
Derivative instruments, measured at fair value | 3,546 | 436 | |
Other real estate investments, measured at fair value | 0 | 2,074 | |
Receivable for loan repayment | [1] | 87,356 | 252,351 |
Accrued interest receivable | 26,287 | 30,109 | |
Prepaid expenses and other assets | 14,383 | 13,595 | |
Intangible lease asset, net of amortization | 46,313 | 48,472 | |
Real estate owned, net of depreciation | 88,322 | 90,048 | |
Cash collateral receivable from derivative counterparties | 0 | 56,767 | |
Total assets | 6,178,121 | 9,474,701 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Collateralized loan obligations | 3,174,530 | 2,162,190 | |
Mortgage note payable | 23,998 | 23,998 | |
Unsecured debt | 98,670 | 148,594 | |
Derivative instruments, measured at fair value | 12 | 32,295 | |
Interest payable | 8,472 | 2,692 | |
Distributions payable | 36,546 | 30,346 | |
Accounts payable and accrued expenses | 52,731 | 12,705 | |
Due to affiliates | 16,444 | 17,538 | |
Total liabilities | 4,501,591 | 7,666,645 | |
Commitment and contingencies (See Note 10) | |||
Redeemable Convertible Preferred Stock | 96,724 | 96,655 | |
Equity: | |||
Common stock, $0.01 par value, 900,000,000 shares authorized, 83,362,351 and 43,965,928 shares issued and outstanding as of September 30, 2022 and December 31, 2021, respectively | 830 | 441 | |
Additional paid-in capital | 1,605,120 | 903,264 | |
Accumulated other comprehensive income (loss) | (373) | (62) | |
Accumulated deficit | (290,277) | (167,179) | |
Total stockholders' equity | 1,574,042 | 1,705,637 | |
Non-controlling interest | 5,764 | 5,764 | |
Total equity | 1,579,806 | 1,711,401 | |
Total liabilities, redeemable convertible preferred stock and equity | 6,178,121 | 9,474,701 | |
Series C Preferred Stock | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Redeemable Convertible Preferred Stock | 6,976 | 6,971 | |
Series D Preferred Stock | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Redeemable Convertible Preferred Stock | 0 | 89,684 | |
Series H Preferred Stock | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Redeemable Convertible Preferred Stock | 89,748 | 0 | |
Series E Preferred Stock | |||
Equity: | |||
Preferred stock, value, issued | 258,742 | 258,742 | |
Series F Preferred Stock | |||
Equity: | |||
Preferred stock, value, issued | 0 | 710,431 | |
CMBS | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Repurchase agreements | 699,408 | 1,019,600 | |
Other financing and loan participation - commercial mortgage loans | 53,167 | 37,903 | |
Real Estate Securities | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Repurchase agreements | $ 337,613 | $ 4,178,784 | |
[1]Includes $86.9 million and $187.0 million of cash held by servicer related to the CLOs as of September 30, 2022 and December 31, 2021, respectively, as well as $0.4 million and $65.3 million of RMBS principal paydowns receivable as of September 30, 2022 and December 31, 2021, respectively. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Allowance for loan losses | $ 46,815 | $ 15,827 |
Amortized cost | $ 74,998 | |
Common stock, par value per share (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 900,000,000 | 900,000,000 |
Common stock - at par value, shares outstanding (in shares) | 83,362,351 | 43,965,928 |
Common stock, shares issued (in shares) | 83,362,351 | 43,965,928 |
Residential mortgage backed securities, principal paydowns, receivable | $ 400 | $ 65,300 |
Collaterized loan obligation | ||
Restricted cash | $ 86,900 | $ 187,000 |
Series C Preferred Stock | ||
Preferred stock, par value per share (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 20,000 | 20,000 |
Preferred stock, shares outstanding (in shares) | 1,400 | 1,400 |
Preferred stock, shares issued (in shares) | 1,400 | 1,400 |
Series D Preferred Stock | ||
Preferred stock, par value per share (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 0 | 20,000 |
Preferred stock, shares outstanding (in shares) | 0 | 17,950 |
Preferred stock, shares issued (in shares) | 17,950 | |
Series H Preferred Stock | ||
Preferred stock, par value per share (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 20,000 | 0 |
Preferred stock, shares outstanding (in shares) | 17,950 | 0 |
Preferred stock, shares issued (in shares) | 17,950 | |
Series E Preferred Stock | ||
Preferred stock, par value per share (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Preferred stock, shares outstanding (in shares) | 10,329,039 | 10,329,039 |
Preferred stock, shares issued (in shares) | 10,329,039 | 10,329,039 |
Preferred stock rate, as a percentage | 7.50% | 7.50% |
Series F Preferred Stock | ||
Preferred stock, par value per share (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 0 | 40,000,000 |
Preferred stock, shares outstanding (in shares) | 0 | 39,733,299 |
Preferred stock, shares issued (in shares) | 39,733,299 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income: | ||||
Interest income | $ 94,131 | $ 47,747 | $ 239,602 | $ 138,969 |
Less: Interest expense | 46,157 | 11,988 | 101,444 | 35,994 |
Net interest income | 47,974 | 35,759 | 138,158 | 102,975 |
Revenue from real estate owned | 2,312 | 1,015 | 6,936 | 2,447 |
Total income | 50,286 | 36,774 | 145,094 | 105,422 |
Expenses: | ||||
Asset management and subordinated performance fee | 6,430 | 8,265 | 19,776 | 19,682 |
Acquisition expenses | 362 | 690 | 996 | 1,012 |
Administrative services expenses | 3,001 | 2,980 | 9,402 | 9,532 |
Professional fees | 4,743 | 2,488 | 20,138 | 7,262 |
Depreciation and amortization | 1,295 | 0 | 3,886 | 812 |
Other expenses | 1,424 | 709 | 4,849 | 2,115 |
Total expenses | 17,255 | 15,132 | 59,047 | 40,415 |
Other (income)/loss: | ||||
Provision/(benefit) for credit losses | (599) | (1,613) | 30,976 | (5,452) |
Realized (gain)/loss on extinguishment of debt | 0 | 0 | (15) | 0 |
Realized (gain)/loss on sale of commercial mortgage loans, held for sale | (9) | (206) | (48) | (206) |
Realized (gain)/loss on sale of real estate owned assets, held for sale | 0 | (8,698) | 0 | (9,810) |
Realized (gain)/loss on sale of commercial mortgage loans, held for sale, measured at fair value | (4,782) | (9,061) | (4,838) | (22,211) |
Realized (gain)/loss on other real estate investments, measured at fair value | 0 | 0 | 33 | 0 |
Unrealized (gain)/loss on commercial mortgage loans, held for sale, measured at fair value | (58) | 1,104 | 3,678 | 0 |
Unrealized (gain)/loss on other real estate investments, measured at fair value | 0 | (1) | (4) | (27) |
Trading (gain)/loss | 2,744 | 0 | 113,717 | 1,375 |
Unrealized (gain)/loss on derivatives | (1,566) | (1,428) | 12,824 | (374) |
Realized (gain)/loss on derivatives | 1,624 | 1,902 | (57,599) | (357) |
Total other (income)/loss | (2,646) | (18,001) | 98,724 | (37,062) |
Income/(loss) before taxes | 35,677 | 39,643 | (12,677) | 102,069 |
Provision/(benefit) for income tax | 419 | 1,148 | 281 | 3,418 |
Net income/(loss) | 35,258 | 38,495 | (12,958) | 98,651 |
Net income/(loss) applicable to common stock, basic | 28,359 | 29,490 | (47,823) | 75,905 |
Net income/(loss) applicable to common stock, diluted | $ 28,359 | $ 29,490 | $ (47,823) | $ 75,905 |
Basic earnings per share (in dollars per share) | $ 0.34 | $ 0.67 | $ (0.70) | $ 1.72 |
Diluted earnings per share (in dollars per share) | $ 0.34 | $ 0.67 | $ (0.70) | $ 1.71 |
Basic weighted average shares outstanding (in shares) | 83,665,250 | 44,185,241 | 67,965,397 | 44,245,733 |
Diluted weighted average shares outstanding (in shares) | 83,665,250 | 44,200,564 | 67,965,397 | 44,261,470 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income/(loss) | $ 35,258 | $ 38,495 | $ (12,958) | $ 98,651 |
Unrealized gain/(loss) on available for sale securities | (373) | 0 | (373) | 8,256 |
Amounts related to cash flow hedges: | ||||
Change in net unrealized gain/(loss) | 0 | 0 | (220) | 0 |
Reclassification adjustment for amounts included in net income/(loss) | 0 | 0 | 282 | 0 |
Total unrealized gain (loss) | 0 | 0 | 62 | 0 |
Comprehensive income/(loss) attributable to Franklin BSP Realty Trust, Inc. | $ 34,885 | $ 38,495 | $ (13,269) | $ 106,907 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Series F Preferred Stock | Total Stockholders' Equity | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income/(Loss) | Accumulated Deficit | Preferred Stock Series E Preferred Stock | Preferred Stock Series F Preferred Stock | Non-Controlling Interest |
Beginning balance (in shares) at Dec. 31, 2020 | 44,510,051 | |||||||||
Beginning balance, total equity at Dec. 31, 2020 | $ 798,444 | $ 798,444 | $ 446 | $ 912,725 | $ (8,256) | $ (106,471) | $ 0 | $ 0 | $ 0 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Common stock shares repurchased (in shares) | (521,796) | |||||||||
Common stock repurchases | (9,147) | (9,147) | $ (5) | (9,142) | ||||||
Common stock issued through distribution reinvestment plan (in shares) | 147,404 | |||||||||
Common stock issued through distribution reinvestment plan | 2,585 | 2,585 | $ 2 | 2,583 | ||||||
Share-based compensation | 55 | 55 | 55 | |||||||
Offering costs | (21) | (21) | (21) | |||||||
Net income/(loss) | 30,146 | 30,146 | 30,146 | |||||||
Distributions declared | (15,644) | (15,644) | (15,644) | |||||||
Other comprehensive income/(loss) | 8,042 | 8,042 | 8,042 | |||||||
Ending balance (in shares) at Mar. 31, 2021 | 44,135,659 | |||||||||
Ending balance, total equity at Mar. 31, 2021 | 814,460 | 814,460 | $ 443 | 906,200 | (214) | (91,969) | 0 | 0 | 0 | |
Beginning balance (in shares) at Dec. 31, 2020 | 44,510,051 | |||||||||
Beginning balance, total equity at Dec. 31, 2020 | 798,444 | 798,444 | $ 446 | 912,725 | (8,256) | (106,471) | 0 | 0 | 0 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Preferred F exchanged for common stock (in shares) | 0 | |||||||||
Preferred F exchanged for common stock | $ 0 | |||||||||
Net income/(loss) | 98,651 | |||||||||
Ending balance (in shares) at Sep. 30, 2021 | 44,162,657 | |||||||||
Ending balance, total equity at Sep. 30, 2021 | 852,880 | 847,116 | $ 443 | 906,517 | 0 | (59,844) | 0 | 0 | 5,764 | |
Beginning balance (in shares) at Mar. 31, 2021 | 44,135,659 | |||||||||
Beginning balance, total equity at Mar. 31, 2021 | 814,460 | 814,460 | $ 443 | 906,200 | (214) | (91,969) | 0 | 0 | 0 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Issuance of common stock (in shares) | 504 | |||||||||
Common stock shares repurchased (in shares) | (3,784) | |||||||||
Common stock repurchases | (66) | (66) | (66) | |||||||
Common stock issued through distribution reinvestment plan (in shares) | 141,270 | |||||||||
Common stock issued through distribution reinvestment plan | 2,524 | 2,524 | $ 1 | 2,523 | ||||||
Share-based compensation (in shares) | 11,184 | |||||||||
Share-based compensation | 53 | 53 | 53 | |||||||
Offering costs | (21) | (21) | (21) | |||||||
Net income/(loss) | 30,010 | 30,010 | 30,010 | |||||||
Distributions declared | (15,898) | (15,898) | (15,898) | |||||||
Other comprehensive income/(loss) | 214 | 214 | 214 | |||||||
Ending balance (in shares) at Jun. 30, 2021 | 44,284,833 | |||||||||
Ending balance, total equity at Jun. 30, 2021 | 831,276 | 831,276 | $ 444 | 908,689 | 0 | (77,857) | 0 | 0 | 0 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Common stock shares repurchased (in shares) | (123,257) | |||||||||
Common stock repurchases | (2,204) | (2,204) | $ (1) | (2,203) | ||||||
Common stock issued through distribution reinvestment plan (in shares) | 1,081 | |||||||||
Common stock issued through distribution reinvestment plan | 1 | 1 | 1 | |||||||
Share-based compensation | 52 | 52 | 52 | |||||||
Offering costs | (22) | (22) | (22) | |||||||
Net income/(loss) | 38,495 | 38,495 | 38,495 | |||||||
Distributions declared | (20,482) | (20,482) | (20,482) | |||||||
Non-controlling interest | 5,764 | 5,764 | ||||||||
Ending balance (in shares) at Sep. 30, 2021 | 44,162,657 | |||||||||
Ending balance, total equity at Sep. 30, 2021 | $ 852,880 | 847,116 | $ 443 | 906,517 | 0 | (59,844) | 0 | 0 | 5,764 | |
Beginning balance (in shares) at Dec. 31, 2021 | 43,965,928 | 43,965,928 | ||||||||
Beginning balance, total equity at Dec. 31, 2021 | $ 1,711,401 | 1,705,637 | $ 441 | 903,264 | (62) | (167,179) | 258,742 | 710,431 | 5,764 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Common stock issued through distribution reinvestment plan (in shares) | 5,982 | |||||||||
Common stock issued through distribution reinvestment plan | 91 | 91 | 91 | |||||||
Share-based compensation (in shares) | 499,217 | |||||||||
Share-based compensation | 500 | 500 | 500 | |||||||
Net income/(loss) | (22,507) | (22,507) | (22,507) | |||||||
Distributions declared | (36,743) | (36,743) | (36,743) | |||||||
Other comprehensive income/(loss) | 62 | 62 | 62 | |||||||
Ending balance (in shares) at Mar. 31, 2022 | 44,471,127 | |||||||||
Ending balance, total equity at Mar. 31, 2022 | $ 1,652,804 | 1,647,040 | $ 441 | 903,855 | 0 | (226,429) | 258,742 | 710,431 | 5,764 | |
Beginning balance (in shares) at Dec. 31, 2021 | 43,965,928 | 43,965,928 | ||||||||
Beginning balance, total equity at Dec. 31, 2021 | $ 1,711,401 | 1,705,637 | $ 441 | 903,264 | (62) | (167,179) | 258,742 | 710,431 | 5,764 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Common stock shares repurchased (in shares) | (931,053) | |||||||||
Common stock repurchases | $ (11,000) | |||||||||
Preferred F exchanged for common stock (in shares) | 39,733,299 | |||||||||
Preferred F exchanged for common stock | $ 710,431 | |||||||||
Net income/(loss) | $ (12,958) | |||||||||
Ending balance (in shares) at Sep. 30, 2022 | 83,362,351 | 83,362,351 | ||||||||
Ending balance, total equity at Sep. 30, 2022 | $ 1,579,806 | 1,574,042 | $ 830 | 1,605,120 | (373) | (290,277) | 258,742 | 0 | 5,764 | |
Beginning balance (in shares) at Mar. 31, 2022 | 44,471,127 | |||||||||
Beginning balance, total equity at Mar. 31, 2022 | 1,652,804 | 1,647,040 | $ 441 | 903,855 | 0 | (226,429) | 258,742 | 710,431 | 5,764 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Common stock shares repurchased (in shares) | 743 | |||||||||
Share-based compensation (in shares) | 21,459 | |||||||||
Share-based compensation | 721 | 721 | 721 | |||||||
Preferred F exchanged for common stock (in shares) | 39,733,299 | |||||||||
Preferred F exchanged for common stock | 0 | 0 | $ 397 | 710,034 | (710,431) | |||||
Net income/(loss) | (25,709) | (25,709) | (25,709) | |||||||
Distributions declared | (36,848) | (36,848) | (36,848) | |||||||
Ending balance (in shares) at Jun. 30, 2022 | 84,226,628 | |||||||||
Ending balance, total equity at Jun. 30, 2022 | 1,590,968 | 1,585,204 | $ 838 | 1,614,610 | 0 | (288,986) | 258,742 | 0 | 5,764 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Common stock shares repurchased (in shares) | (931,053) | |||||||||
Common stock repurchases | (11,035) | (11,035) | $ (9) | (11,026) | ||||||
Common stock issued through distribution reinvestment plan (in shares) | 66,776 | |||||||||
Common stock issued through distribution reinvestment plan | 907 | 907 | $ 1 | 906 | ||||||
Share-based compensation | 630 | 630 | 630 | |||||||
Net income/(loss) | 35,258 | 35,258 | 35,258 | |||||||
Distributions declared | (36,549) | (36,549) | (36,549) | |||||||
Other comprehensive income/(loss) | $ (373) | (373) | (373) | |||||||
Ending balance (in shares) at Sep. 30, 2022 | 83,362,351 | 83,362,351 | ||||||||
Ending balance, total equity at Sep. 30, 2022 | $ 1,579,806 | $ 1,574,042 | $ 830 | $ 1,605,120 | $ (373) | $ (290,277) | $ 258,742 | $ 0 | $ 5,764 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Cash flows from operating activities: | |||||||
Net income/(loss) | $ 35,258 | $ (22,507) | $ 38,495 | $ 30,146 | $ (12,958) | $ 98,651 | |
Adjustments to reconcile net income to net cash (used in)/provided by operating activities: | |||||||
Premium amortization and (discount accretion), net | (8,780) | (4,421) | |||||
Accretion of deferred commitment fees | (6,795) | (6,429) | |||||
Amortization of deferred financing costs | 9,737 | 3,820 | |||||
Share-based compensation | 1,850 | 160 | |||||
Realized (gain)/loss from sale of real estate owned, held for sale | 0 | (9,810) | |||||
Realized (gain)/loss from sale of other real estate investments | 33 | 0 | |||||
Realized (gain)/loss on extinguishment of debt | 0 | 0 | (15) | 0 | |||
Realized (gain)/loss on swap terminations | (55,301) | 0 | |||||
Trading (gain)/loss | 113,717 | 1,375 | |||||
Unrealized (gain)/loss from commercial mortgage loans, held for sale | 3,678 | 0 | |||||
Unrealized (gain)/loss from derivative instruments | 12,824 | (374) | |||||
Unrealized (gain)/loss from other real estate investments | (4) | (27) | |||||
Depreciation and amortization | 3,886 | 812 | |||||
Provision/(benefit) for credit losses | (599) | (1,613) | 30,976 | (5,452) | |||
Origination of commercial mortgage loans, held for sale, measured at fair value | (343,096) | (321,278) | |||||
Proceeds from sale of commercial mortgage loans, held for sale, measured at fair value | 332,794 | 388,828 | |||||
Changes in assets and liabilities: | |||||||
Accrued interest receivable | 7,336 | 4,593 | |||||
Prepaid expenses and other assets | (4,047) | 1,434 | |||||
Accounts payable and accrued expenses | 40,114 | 4,547 | |||||
Due to affiliates | (1,094) | 7,615 | |||||
Interest payable | 5,780 | (1,005) | |||||
Net cash (used in)/provided by operating activities | 130,635 | 163,039 | |||||
Cash flows from investing activities: | |||||||
Origination and purchase of commercial mortgage loans, held for investment | (1,964,212) | (1,388,777) | |||||
Principal repayments received on commercial mortgage loans, held for investment | 965,681 | 771,878 | |||||
Proceeds from (purchase)/sale of other real estate investments | 2,045 | 0 | |||||
Purchase of real estate owned and capital expenditures | 0 | (134,052) | |||||
Proceeds from sale of real estate owned, held for sale | 0 | 29,914 | |||||
Purchase of real estate securities, available for sale | (74,998) | 0 | |||||
Proceeds from sale of commercial mortgage loans, held for sale | 9,296 | 38,161 | |||||
Proceeds from sale/(repayment) of real estate securities | 3,731,716 | 178,017 | |||||
Principal collateral on mortgage investments | 533,852 | 0 | |||||
Payments of derivative instruments | (1,333) | (4) | |||||
Net cash (used in)/provided by investing activities | 3,202,047 | (504,863) | |||||
Cash flows from financing activities: | |||||||
Proceeds from issuances of redeemable convertible preferred stock | 0 | 15,000 | |||||
Payments for common stock repurchases | (11,035) | (11,417) | |||||
Borrowings on collateralized loan obligations | 1,630,639 | 612,723 | |||||
Repayments of collateralized loan obligations | (609,530) | (442,672) | |||||
Borrowings on repurchase agreements - commercial mortgage loans | 1,791,951 | 812,528 | |||||
Repayments of repurchase agreements - commercial mortgage loans | (2,112,143) | (538,712) | |||||
Borrowings on repurchase agreements - real estate securities | 17,711,125 | 175,822 | |||||
Repayments of repurchase agreements - real estate securities | (21,552,296) | (316,118) | |||||
Proceeds from other financing and loan participation - commercial mortgage loans | 15,264 | 6,055 | |||||
Borrowings on unsecured debt | 0 | 160,000 | |||||
Repayments of unsecured debt | (50,000) | (100,000) | |||||
Borrowing on mortgage note payable | 0 | 23,940 | |||||
Payments of deferred financing costs | (15,163) | (4,497) | |||||
Cash collateral received on interest rate swaps | 56,767 | 0 | |||||
Proceeds from interest rate swap settlements | 8,479 | 0 | |||||
Distributions paid | (102,941) | (42,064) | |||||
Net cash (used in)/provided by financing activities: | (3,238,883) | 350,588 | |||||
Net change in cash, cash equivalents and restricted cash | 93,799 | 8,764 | |||||
Cash, cash equivalents and restricted cash, beginning of period | $ 168,199 | $ 92,141 | 168,199 | 92,141 | $ 92,141 | ||
Cash, cash equivalents and restricted cash, end of period | 261,998 | 100,905 | 261,998 | 100,905 | 168,199 | ||
Supplemental disclosures of cash flow information: | |||||||
Cash payments for income taxes | 1,199 | 80 | |||||
Cash payments for interest | 85,927 | 33,312 | |||||
Supplemental disclosures of non - cash flow information: | |||||||
Distribution payable | 36,546 | 20,447 | 36,546 | 20,447 | 30,346 | ||
Common stock issued through distribution reinvestment plan | 998 | 5,110 | |||||
Loans transferred to commercial real estate loans, held for sale | 9,296 | 0 | |||||
Reconciliation of cash, cash equivalents and restricted cash at end of period: | |||||||
Cash and cash equivalents | 216,985 | 91,374 | 216,985 | 91,374 | 154,929 | ||
Restricted cash | 45,013 | 9,531 | 45,013 | 9,531 | 13,270 | ||
Cash, cash equivalents and restricted cash, end of period | $ 261,998 | $ 100,905 | 261,998 | 100,905 | $ 168,199 | ||
Conversion of Series F Preferred Stock to Common Stock | |||||||
Conversion of stock | 710,431 | 0 | |||||
Conversion of Series D Preferred Stock to Series H Preferred Stock | |||||||
Conversion of stock | $ 89,748 | $ 0 |
Organization and Business Opera
Organization and Business Operations | 9 Months Ended |
Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Business Operations | Organization and Business Operations Franklin BSP Realty Trust, Inc. (the "Company") is a real estate finance company that primarily originates, acquires and manages a diversified portfolio of commercial real estate debt investments secured by properties located within and outside the United States. The Company is a Maryland corporation and has made tax elections to be treated as a real estate investment trust (a "REIT") for U.S. federal income tax purposes since 2013. The Company believes that it has qualified as a REIT and intends to continue to meet the requirements for qualification and taxation as a REIT. Substantially all of the Company's business is conducted through Benefit Street Partners Realty Operating Partnership, L.P. (the “OP”), a Delaware limited partnership. The Company is the sole general partner and directly or indirectly holds all of the units of limited partner interests in the OP. In addition, the Company, through one or more subsidiaries which are treated as a taxable REIT subsidiary (a “TRS”), is indirectly subject to U.S. federal, state and local income taxes. The Company has no employees. Benefit Street Partners L.L.C. serves as the Company's advisor (the "Advisor") pursuant to an advisory agreement, as amended on August 18, 2021 (the "Advisory Agreement"). The Advisor, an investment adviser registered with the SEC, is a credit-focused alternative asset management firm. Established in 2008, the Advisor's credit platform manages funds for institutions and high-net-worth investors across various credit funds and complementary strategies including high yield, levered loans, private/opportunistic debt, liquid credit, structured credit and commercial real estate debt. These strategies complement each other as they all leverage the sourcing, analytical, compliance, and operational capabilities that encompass the platform. The Advisor manages the Company's affairs on a day-to-day basis. The Advisor receives compensation fees and reimbursements for services related to the investment and management of the Company's assets and the operations of the Company. The advisor is a wholly-owned subsidiary of Franklin Resources, Inc., which together with its various subsidiaries operates as "Franklin Templeton”. The Company invests in commercial real estate debt investments, which may include first mortgage loans, subordinated mortgage loans, mezzanine loans and participations in such loans. The Company also originates conduit loans which the Company intends to sell through its TRS into commercial mortgage-backed securities ("CMBS") securitization transactions. Historically this business has focused primarily on CMBS, commercial real estate collateralized loan obligation bonds ("CRE CLO bonds"), unsecured REIT debt, collateralized debt obligations ("CDOs") and other securities. As a result of the October 2021 acquisition of Capstead Mortgage Corporation ("Capstead"), the Company acquired a portfolio of residential mortgage backed securities (“RMBS”) in the form of residential adjustable-rate mortgage pass-through securities ("ARM Agency Securities") issued and guaranteed by government-sponsored enterprises or by an agency of the federal government. Although the Company continues to hold a small portion of this portfolio it does not intend to do so long-term and intends to reinvest proceeds from this portfolio in its other businesses . The Company also owns real estate that was either acquired by the Company through foreclosure or deed in lieu of foreclosure, or that was purchased for investment, typically subject to triple net leases. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Accounting The Company's unaudited consolidated financial statements and related footnotes have been prepared on the accrual basis of accounting in conformity with accounting principles generally accepted in the United States of America ("GAAP") for interim financial statements and pursuant to the requirements for reporting on Form 10-Q and Regulation S-X, as appropriate. Accordingly, the consolidated financial statements may not include all of the information and notes required by GAAP for annual consolidated financial statements. These financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto as of, and for the year ended December 31, 2021, which are included in the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission ("SEC") on February 25, 2022. Use of Estimates GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the reported periods. Changes in the economic environment, financial markets and any other parameters used in determining these estimates could cause actual results to differ materially. In the opinion of management, the interim data includes all adjustments, of a normal and recurring nature, necessary for a fair statement of the results for the periods presented. The current period’s results of operations will not necessarily be indicative of results that ultimately may be achieved for the entire year or any subsequent interim periods. Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company, the OP and its subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. In determining whether the Company has a controlling financial interest in a joint venture and the requirement to consolidate the accounts of that entity, management considers factors such as ownership interest, authority to make decisions and contractual and substantive participating rights of the other partners or members, as well as whether the entity is a variable interest entity ("VIE") for which the Company is the primary beneficiary. The Company has determined the OP is a VIE of which the Company is the primary beneficiary. Substantially all of the Company's assets and liabilities are held by the OP. The Company consolidates all entities that it controls through either majority ownership or voting rights. In addition, the Company consolidates all VIEs of which the Company is considered the primary beneficiary. VIEs are entities in which equity investors (i) do not have the characteristics of a controlling financial interest and/or (ii) do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties. The entity that consolidates a VIE is its primary beneficiary and is generally the entity with (i) the power to direct the activities that most significantly affect the VIE’s economic performance and (ii) the right to receive benefits from the VIE or the obligation to absorb losses of the VIE that could be significant to the VIE. Non-controlling interest represents the equity of a consolidated joint venture that is not owned by the Company. The accompanying consolidated financial statements include the accounts of collateralized loan obligations ("CLOs") issued and securitized by wholly owned subsidiaries of the Company. The Company has determined the CLOs are VIEs of which the Company's subsidiary is the primary beneficiary. The assets and liabilities of the CLOs are consolidated in the accompanying consolidated balance sheets in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 810, Consolidation. Acquisition Expenses The Company capitalizes certain direct costs relating to loan origination activities. The cost is amortized over the life of the loan and recognized in interest income in the Company's consolidated statements of operations. Acquisition expenses paid on future funding amounts are expensed within the acquisition expenses line in the Company's consolidated statements of operations. Cash and Cash Equivalents Cash consists of amounts deposited with high quality financial institutions. These deposits are guaranteed by the Federal Deposit Insurance Company up to an insurance limit. Cash equivalents include short-term, liquid investments in money market funds with original maturities of 90 days or less when purchased. Restricted Cash Restricted cash primarily consists of cash pledged as margin on repurchase agreements and derivative transactions. The duration of this restricted cash generally matches the duration of the related repurchase agreements or derivative transaction. Commercial Mortgage Loans Held for Investment - Commercial mortgage loans that are held for investment purposes and are anticipated to be held until maturity, are carried at cost, net of unamortized acquisition expenses, discounts or premiums and unfunded commitments. Commercial mortgage loans, held for investment purposes, are carried at amortized cost less allowance for credit losses. Interest income is recorded on the accrual basis and related discounts, premiums and acquisition expenses on investments are amortized over the life of the investment using the effective interest method. Amortization is reflected as an adjustment to interest income in the Company’s consolidated statements of operations. Guaranteed loan commitment fees payable by the borrower upon maturity are accreted over the life of the investment using the effective interest method. The accretion of guaranteed loan commitment fees is recognized in interest income in the Company's consolidated statements of operations. Held for Sale - Commercial mortgage loans that are intended to be sold in the foreseeable future are reported as held for sale and are transferred at fair value and recorded at the lower of cost or fair value with changes recorded through the statements of operations. Unamortized loan origination costs for commercial mortgage loans held for sale that are carried at the lower of cost or fair value are capitalized as part of the carrying value of the loans and recognized upon the sale of such loans. Amortization of origination costs ceases upon transfer of commercial mortgage loans to held for sale. Held for Sale, Accounted for Under the Fair Value Option - The fair value option provides an option to elect fair value as an alternative measurement for selected financial assets, financial liabilities, and written loan commitments. The Company has elected to measure commercial mortgage loans held for sale in the Company's TRS under the fair value option. These commercial mortgage loans are included in the Commercial mortgage loans, held for sale, measured at fair value in the consolidated balance sheets. Interest income received on commercial mortgage loans, held for sale, measured at fair value is recorded on the accrual basis of accounting and is included in interest income in the consolidated statements of operations. Costs to originate these investments are expensed when incurred. Real estate owned The Company classifies its real estate owned as long-lived assets held for investment or as long-lived assets held for sale. Held for investment assets are stated at cost, as adjusted for any impairment loss, less accumulated depreciation. Real estate owned is classified as held for sale in the period in which the six criteria under ASC Topic 360, "Property, Plant, and Equipment" are met: (1) we commit to a plan and have the authority to sell the asset; (2) the asset is available for sale in its current condition; (3) we have initiated an active marketing plan to locate a buyer for the asset; (4) the sale of the asset is both probable and expected to qualify for full sales recognition within a period of 12 months; (5) the asset is being actively marketed for sale at a price that is reflective of its current fair value; and (6) we do not anticipate changes to our plan to sell the asset. Held for sale assets are carried at the lower of depreciated cost or estimated fair value, less estimated costs to sell. Amounts capitalized to real estate owned consist of the cost of acquisition or construction, any tenant improvements or major improvements, betterments that extend the useful life of the related asset, and transaction costs associated with the acquisition of an individual asset that does not qualify as a business combination. All repairs and maintenance are expensed as incurred. Additionally, the Company capitalizes interest while the development, or redevelopment, of a real estate owned asset is in progress. No development or redevelopments of real estate owned assets are in progress as of September 30, 2022. The Company’s real estate owned assets are depreciated or amortized using the straight-line method over the following useful lives: Buildings 40 years Furniture, fixtures, and equipment 15 years Site Improvements 5 - 25 years Intangible lease assets Lease term The Company continually monitors events and changes in circumstances that could indicate that the carrying amounts of the real estate and related intangible assets of either operating properties or properties under construction in which the Company has an ownership interest, either directly or through investments in joint ventures, may not be recoverable. When indicators of potential impairment are present, management assesses whether the respective carrying values will be recovered from the undiscounted future operating cash flows expected from the use of the asset and its eventual disposition for assets held for use, or from the estimated fair values, less costs to sell, for assets held for sale. In the event that the expected undiscounted future cash flows for assets held for use or the estimated fair value, less costs to sell, for assets held for sale do not exceed the respective asset carrying value, management adjusts such assets to the respective estimated fair values and recognizes an impairment loss. Estimated fair values are calculated based on the following information, depending upon availability, in order of preference: (i) recently quoted market prices, (ii) market prices for comparable properties, or (iii) the present value of undiscounted cash flows, including estimated sales value (which is based on key assumptions such as estimated market rents, lease-up periods, estimated lease terms, and capitalization and discount rates) less estimated selling costs. Real estate owned assets that are probable to be sold within one year are reported as held for sale. Real estate owned assets classified as held for sale are measured at the lower of its carrying amount or fair value less cost to sell. Real estate owned assets are not depreciated or amortized while they are classified as held for sale. Interest and other expenses attributable to the liabilities of a disposal group classified as held for sale continue to be accrued. Upon the disposition of a real estate owned asset, the Company calculates realized gains and losses as net proceeds received less the carrying value of the real estate owned asset. Net proceeds received are net of direct selling costs associated with the disposition of the real estate owned asset. Fair Value of Assets and Liabilities of Acquired Properties Upon the acquisition of real properties, the Company records the fair value of properties (plus any related acquisition costs) allocated based on relative fair value as tangible assets, consisting of land and building, and identified intangible assets and liabilities, consisting of the value of above-market and below-market leases and the value of in-place leases, based on their estimated fair values. Substantially all of the Company’s property acquisitions qualify as asset acquisitions under Accounting Standards Codification ("ASC") 805, Business Combinations. The estimated fair values of the tangible assets of an acquired property are determined by valuing the property as if it were vacant, and the “as-if-vacant” value is then allocated to land and building based on management’s determination of the estimated fair value of these assets. Management relies on a sales comparison approach using closed land sales and listings in determining the land value, and determines the as-if-vacant estimated fair value of a property using methods similar to those used by independent appraisers. Factors considered by management in performing these analyses include an estimate of carrying costs during the expected lease-up periods considering current market conditions and costs to execute similar leases. In estimating carrying costs, management includes real estate taxes, insurance, and other operating expenses and estimates of lost rental revenue during the expected lease-up periods based on current market demand. Management also estimates the cost to execute similar leases including leasing commissions, legal, and other related costs. The estimated fair values of above-market and below-market in-place leases are recorded based on the present value (using an interest rate which reflects the risks associated with the leases acquired) of the difference between (i) the contractual amounts to be paid pursuant to the in-place leases and (ii) management’s estimate of market rates for the corresponding in-place leases, measured over a period equal to the remaining terms of the leases, taking into consideration the probability of renewals for any below-market leases. The capitalized above-market and below-market lease values are recorded as intangible lease assets or liabilities and amortized as an adjustment to rental revenues over the remaining terms of the respective leases. The estimated fair values of in-place leases include an estimate of the direct costs associated with obtaining the acquired or "in place" tenant and estimates of opportunity costs associated with lost rentals that are avoided by acquiring an in-place lease. The amount capitalized as direct costs associated with obtaining a tenant include commissions, tenant improvements, and other direct costs and are estimated based on management’s consideration of current market costs to execute a similar lease. These direct lease origination costs are included in deferred lease costs in the accompanying consolidated balance sheets and are amortized to expense over the remaining terms of the respective leases. The value of opportunity costs is calculated using the contractual amounts to be paid pursuant to the in-place leases over a market absorption period for a similar lease. These lease intangibles are included in intangible lease assets in the accompanying consolidated balance sheets and are amortized to expense over the remaining terms of the respective leases. Credit Losses The allowances for credit losses required under Accounting Standards Update ("ASU") No. 2016-13, Financial Instruments Credit Losses, are deducted from the respective loans’ amortized cost basis on the Company’s consolidated balance sheets. The allowance for credit losses attributed to unfunded loan commitments is included in Accounts payable and accrued expenses on the consolidated balance sheets. General allowance for credit losses The general allowance for credit losses for the Company’s financial instruments carried at amortized cost and off-balance sheet credit exposures, such as loans held for investment and unfunded loan commitments represents a lifetime estimate of expected credit losses. Factors considered by the Company when determining the general allowance for credit losses reserve include loan-specific characteristics such as loan-to-value (“LTV”) ratio, vintage year, loan term, property type, occupancy and geographic location, financial performance of the borrower, expected payments of principal and interest, as well as internal or external information relating to past events, current conditions and reasonable and supportable forecasts. The general allowance for credit losses is measured on a collective (pool) basis when similar risk characteristics exist for multiple financial instruments. If similar risk characteristics do not exist, the Company measures the general allowance for credit losses on an individual instrument basis. The determination of whether a particular financial instrument should be included in a pool can change over time. If a financial asset’s risk characteristics change, the Company evaluates whether it is appropriate to continue to keep the financial instrument in its existing pool or evaluate it individually. In measuring the general allowance for credit losses for financial instruments including our unfunded loan commitments that share similar risk characteristics, the Company primarily applies a probability of default (“PD”)/loss given default (“LGD”) model for instruments that are collectively assessed, whereby the allowance for credit losses is calculated as the product of PD, LGD and exposure at default (“EAD”). The Company’s model principally utilizes historical loss rates derived from a commercial mortgage backed securities database with historical losses from 1998 to 2022 provided by a reputable third party, forecasting the loss parameters using a scenario-based statistical approach over a reasonable and supportable forecast period of twelve months, followed by an immediate reversion to average historical losses. For financial instruments assessed on an individual basis, including when it is probable that the Company will be unable to collect the full payment of principal and interest on the instrument, the Company applies a discounted cash flow (“DCF”) methodology. Specific allowance for credit losses For financial instruments where, based on the Company’s assessment at the reporting date, the repayment is expected to be provided substantially through the operation or sale of the collateral, the Company may elect to use as a practical expedient the fair value of the collateral as of the reporting date when determining a specific allowance for credit losses. For financial instruments which the Company identifies reasonable doubt as to whether the collection of contractual components can be satisfied, a loan specific allowance analysis is performed. Determining whether a specific allowance for a loan is required entails significant judgment from management and is based on several factors including (i) the underlying collateral performance, (ii) discussions with the borrower, (iii) borrower events of default, and (iv) other facts that impact the borrower’s ability to pay the contractual amounts due under the terms of the loan. If a loan is determined to have a specific allowance, the specific allowance is recorded as a component of our Current Expected Credit Loss ("CECL") reserve by applying the practical expedient for collateral dependent loans. The CECL reserve is assessed on an individual basis for such loans by comparing the estimated fair value of the underlying collateral, less costs to sell, to the book value of the respective loan. These valuations require significant judgments, which include assumptions regarding capitalization rates, discount rates, leasing, creditworthiness of major tenants, occupancy rates, availability and cost of financing, exit plans, loan sponsorship, actions of other lenders, and other factors deemed relevant by the Company. Actual losses, if any, could ultimately differ materially from these estimates. The Company only expects to write-off specific allowances if and when such amounts are deemed non-recoverable. Non-recoverability is generally determined at the time a loan is settled, or in the case of foreclosure, when the underlying asset is sold. Non-recoverability may also be concluded if, in the Company's determination, it is deemed certain that all amounts due will not be collected. If a loan is determined to be impaired based on the above considerations, management records a write-off through a charge to the "Specific allowance for credit losses" and the respective loan balance. Risk Rating In developing the allowances for credit losses for its loans held for investment, the Company performs a comprehensive analysis of its loan portfolio and assigns risk ratings to loans that incorporate management's current judgments about their credit quality based on all known and relevant internal and external factors that may affect collectability, using similar factors as those in developing the allowance for credit losses. This methodology results in loans being segmented by risk classification into risk rating categories that are associated with estimated probabilities of default and principal loss. Risk rating categories range from "1" to "5" with "1" representing the lowest risk of loss and "5" representing the highest risk of loss with the ratings updated quarterly. At the time of origination or purchase, loans held for investment are ranked as a “2” and will move accordingly going forward based on the ratings which are defined as follows: 1. Very Low Risk- Investment exceeding fundamental performance expectations and/or capital gain expected. Trends and risk factors since time of investment are favorable. 2. Low Risk- Performing consistent with expectations and a full return of principal and interest expected. Trends and risk factors are neutral to favorable. 3. Average Risk- Performing investments requiring closer monitoring. Trends and risk factors show some deterioration. 4. High Risk/Delinquent/Defaulted/Potential for Loss- Underperforming investment with the potential of some interest loss but still expecting a positive return on investment. Trends and risk factors are negative. 5. Impaired/Loss Likely- Underperforming investment with expected loss of interest and some principal. The Company also considers qualitative and environmental factors, including, but not limited to, economic and business conditions, nature and volume of the loan portfolio, lending terms, volume and severity of past due loans, concentration of credit and changes in the level of such concentrations in its determination of the allowance for credit losses. Changes in the allowances for credit losses for the Company’s financial instruments are recorded in Provision/(benefit) for credit losses on the consolidated statements of operations with a corresponding offset to the financial instrument’s amortized cost recorded on the consolidated balance sheets, or as a component of Accounts payable and accrued expenses for unfunded loan commitments. The Company has elected to not measure an allowance for credit losses for accrued interest receivable as balances are written off in a timely manner when loans, real estate securities or preferred equity investments are designated as non-performing and placed on non-accrual or cost recovery status within 90 days of becoming past due. Non-performing status The Company designates loans as non-performing when (i) full payment of principal and coupon interest components become 90-days past due ("non-accrual status"); or (ii) the Company has reasonable doubt as to whether the collection of contractual components can be satisfied ("cost recovery status"). When a loan is designated as non-performing and placed on non-accrual status, interest is only recognized as income when payment has been received. Loans designated as non-performing and placed on non-accrual status are removed from their non-performing designation when collection of principal and coupon interest components have been satisfied. When a loan is designated as non-performing and placed on cost recovery status, the cost-recovery method is applied to which receipt of principal or coupon interest is recorded as a reduction to the amortized cost until collection of all contractual components are reasonably assured. Troubled Debt Restructuring (“TDR”) The Company classifies an individual financial instrument as a TDR when it has a reasonable expectation that the financial instrument’s contractual terms will be modified in a manner that grants concession to the borrower who is experiencing financial difficulty. Concessions could include term extensions, payment deferrals, interest rate reductions, principal forgiveness, forbearance, or other actions designed to maximize the Company’s collection on the financial instrument. The Company determines the allowance for credit losses for financial instruments that are TDRs individually. Real Estate Securities Available For Sale On the acquisition date, all of the Company’s commercial real estate securities were classified as available for sale ("AFS") and carried at fair value, and subsequently any unrealized gains or losses are recognized as a component of accumulated other comprehensive income or loss. The Company focuses on investing in and asset managing real estate securities. Historically this business has focused primarily on CMBS, CRE CLO bonds, unsecured REIT debt, CDO notes and other securities. Related discounts, premiums and acquisition expenses on investments are amortized over the life of the investment using the effective interest method. Amortization is reflected as an adjustment to interest income in the Company’s consolidated statements of operations. The Company uses the specific identification method in determining the cost relief for real estate securities sold. Realized gains and losses from the sale of real estate securities are included in the Company’s consolidated statements of operations. AFS real estate securities which have experienced a decline in the fair value below their amortized cost basis (i.e., impairment) are evaluated each reporting period to determine whether the decline in fair value is due to credit-related factors. Any impairment that is not credit-related is recognized in accumulated other comprehensive income, while credit-related impairment is recognized as an allowance on the consolidated balance sheets with a corresponding adjustment on the consolidated statements of operations. If the Company intends to sell an impaired real estate security or more likely than not will be required to sell such a security before recovering its amortized cost basis, the entire impairment amount is recognized in the consolidated statements of operations with a corresponding adjustment to the security’s amortized cost basis. The Company analyzes the AFS security portfolio on a periodic basis for credit losses at the individual security level using the same criteria described above for those amortized cost financial assets subject to an allowance for credit losses including but not limited to; performance of the underlying assets in the security, borrower financial resources and investment in collateral, collateral type, credit ratings, project economics and geographic location as well as national and regional economic factors. The non-credit loss component of the unrealized loss within the Company’s AFS portfolio is recognized as an adjustment to the individual security’s asset balance with an offsetting entry to accumulated other comprehensive income in the consolidated balance sheets. Trading In the merger with Capstead, the Company acquired a portfolio of residential mortgage pass-through securities consisting primarily of ARM Agency Securities issued and guaranteed by government-sponsored enterprises, either Fannie Mae, Freddie Mac, or by an agency of the federal government, Ginnie Mae. ARM Agency Securities and are classified as "trading". ARM Agency Securities are recorded at fair value on the balance sheet with trading gains and losses on the paydowns and sales of these securities recorded in the Company's consolidated statements of operations. Fair values fluctuate with current and projected changes in interest rates, prepayment expectations and other factors such as market liquidity conditions and the perceived credit quality of agency securities. Judgment is required to interpret market data and develop estimated fair values, particularly in circumstances of deteriorating credit quality and market liquidity. Repurchase Agreements Commercial mortgage loans and real estate securities sold under repurchase agreements have been treated as collateralized financing transactions because the Company maintains effective control over the transferred securities. Commercial mortgage loans and real estate securities financed through a repurchase agreement remain on the Company’s consolidated balance sheets as an asset and cash received from the purchaser is recorded as a liability. Interest paid in accordance with repurchase agreements is recorded in interest expense on the Company's consolidated statements of operations. Deferred Financing Costs The deferred financing costs related to the Company's various Master Repurchase Agreements as well as certain prepaid subscription costs are included in Prepaid expenses and other assets on the consolidated balance sheets. Deferred financing cost on the Company's collateralized loan obligations ("CLO") are netted against the Company's CLO payable in the Collateralized loan obligations on the consolidated balance sheets. Deferred financing costs are amortized over the terms of the respective financing agreement using the effective interest method and included in interest expense on the Company's consolidated statements of operations. Unamortized deferred financing costs are generally expensed when the associated debt is refinanced or repaid before maturity. Offering and Related Costs Since 2018, the Company has from time to time offered, and may in the future offer, shares of the Company’s common stock or one or more series of its preferred stock, including its Series C convertible preferred stock (the “Series C Preferred Stock,”), former Series D convertible preferred stock (the “Series D Preferred Stock”), and Series H convertible preferred stock (the “Series H Preferred Stock”) in private placements exempt from the registration requirements of the Securities Act of 1933, as amended. In connection with these offerings, the Company incurs various offering costs. These offering costs include but are not limited to legal, accounting, printing, mailing and filing fees, and diligence expenses of broker-dealers. Offering costs for the common stock are recorded in the Company’s stockholders’ equity, while the offering costs for the Series C Preferred Stock and Series D Preferred Stock are included within Series C Preferred Stock and Series D Preferred Stock, respectively, on the Company’s consolidated balance sheets. Offering costs for the Series H Preferred Stock were expensed to the Company's consolidated statement of operations. Equity Incentive Plan The Company maintains the Franklin BSP Realty Trust, Inc. 2021 Equity Incentive Plan (the “2021 Incentive Plan”), pursuant to which the Company may, from time to time, grant equity awards to the Company’s directors, officers and employees (if it ever has employees), employees of the Advisor and its affiliates, or certain of the Company’s consultants, advisors or other service providers to the Company or an affiliate of the Company. The 2021 Incentive Plan, which is administered by the Compensation Committee of the board of directors, provides for the grant of awards of share options, share appreciation rights, restricted shares, restricted share units, deferred share units, unrestricted shares, dividend equivalent rights, performance shares and other performance-based awards, other equity-based awards, LTIP units and cash bonus awards. In January 2022, the Company issued for the first time under the 2021 Incentive Plan awards of restricted stock units ("RSUs") to its officers and certain other personnel of the Advisor who provide services to the Company. These awards are service-based and vest in equal annual installments beginning on the anniversary of the date of grant over a period of three years, subject to continuing service. One share of the Company’s common stock will be issued for each unit that vests. These awards also grant non-forfeitable dividend equivalent rights equal to the cash dividend paid in the ordinary course on a common share to the Company's common shareholders. Upon termination for any reason, all unvested RSUs will be forfeited by the grantee, who will be given no further rights to such RSUs. Restricted Share Plan The Company also has an Amended and Restated Employee and Director Incentive R |
Commercial Mortgage Loans
Commercial Mortgage Loans | 9 Months Ended |
Sep. 30, 2022 | |
Receivables [Abstract] | |
Commercial Mortgage Loans | Commercial Mortgage Loans The following table is a summary of the Company's commercial mortgage loans, held for investment, carrying values by class (dollars in thousands): September 30, 2022 December 31, 2021 Senior loans $ 5,311,315 $ 4,204,464 Mezzanine loans 16,958 22,424 Total amortized cost of loans 5,328,273 4,226,888 General allowance for credit losses 19,195 15,827 Specific allowance for credit losses (1) 27,620 — Less: Total Allowance for Credit Losses 46,815 15,827 Total commercial mortgage loans, held for investment, net $ 5,281,458 $ 4,211,061 _________________________________________________________ (1) As of September 30, 2022, the Company recorded a specific reserve with respect to a retail loan designated as non-performing. As of September 30, 2022 and December 31, 2021, the Company's total commercial mortgage loan portfolio, held for investment, was comprised of 166 and 165 loans, respectively. Allowance for Credit Losses The following table presents the activity in the Company's allowance for credit losses, excluding the unfunded loan commitments, as of September 30, 2022 (dollars in thousands): MultiFamily Retail Office Industrial Mixed Use Hospitality Self-Storage Manufactured Housing Total December 31, 2021 $ 9,681 $ 288 $ 776 $ 86 $ 169 $ 4,597 $ 152 $ 78 $ 15,827 Changes: General provision/(benefit) for credit losses 32 234 (103) 15 (108) (807) (110) (47) (894) March 31, 2022 $ 9,713 $ 522 $ 673 $ 101 $ 61 $ 3,790 $ 42 $ 31 $ 14,933 Changes: General provision/(benefit) for credit losses 4,595 (128) (48) (18) (22) (687) (23) (8) 3,661 Specific provision/(benefit) for credit losses — 28,431 — — — — — — 28,431 June 30, 2022 $ 14,308 $ 28,825 $ 625 $ 83 $ 39 $ 3,103 $ 19 $ 23 $ 47,025 Changes: General provision/(benefit) for credit losses (41) (25) (181) 49 6 793 (13) 13 601 Specific provision/(benefit) for credit losses — (811) — — — — — — (811) September 30, 2022 $ 14,267 $ 27,989 $ 444 $ 132 $ 45 $ 3,896 $ 6 $ 36 $ 46,815 The Company recorded an increase in its general provision for credit losses during the three and nine months ended September 30, 2022 of $0.6 million and $3.4 million, respectively. The primary driver for the higher reserve balance is the change in economic outlook since the end of the prior year. During the nine months ended September 30, 2022, the Company identified a commercial mortgage loan, held for investment secured by a portfolio of 24 retail properties, that was assigned a risk rating of “5” due to certain conditions that negatively impacted the underlying collateral property’s cash flows. Since the loan was considered a collateral-dependent asset under GAAP, as of September 30, 2022 a specific allowance for credit losses of $27.6 million was recorded based on the difference between the Company’s estimation of the fair value of the underlying collateral property, less costs to sell, and the loan’s amortized cost basis. As of September 30, 2022, the loan has a fully funded outstanding principal balance of $109.2 million, and carrying value of $77.9 million. The significant unobservable inputs to the discounted cash flow model used to estimate the fair value of the loan included a capitalization rate, which ranged from 4.75%-6.50%. The following table presents the activity in the Company's allowance for credit losses, for the unfunded loan commitments, as of September 30, 2022 (dollars in thousands): MultiFamily Retail Office Industrial Mixed Use Hospitality Self-Storage Manufactured Housing Total December 31, 2021 $ 137 $ 1 $ 13 $ 3 $ 10 $ 79 $ — $ — $ 243 Changes: General provision/(benefit) for credit losses (32) 15 (4) (2) (10) (28) — — (61) March 31, 2022 $ 105 $ 16 $ 9 $ 1 $ — $ 51 $ — $ — $ 182 Changes: General provision/(benefit) for credit losses 443 (1) 1 (1) — (4) — — 438 June 30, 2022 $ 548 $ 15 $ 10 $ — $ — $ 47 $ — $ — $ 620 Changes: General provision/(benefit) for credit losses (403) — (1) 2 — 11 — 2 (389) September 30, 2022 $ 145 $ 15 $ 9 $ 2 $ — $ 58 $ — $ 2 $ 231 The following tables represent the composition by loan collateral type and region of the Company's commercial mortgage loans, held for investment portfolio (dollars in thousands): September 30, 2022 December 31, 2021 Loan Collateral Type Par Value Percentage Par Value Percentage Multifamily $ 3,992,990 74.7 % $ 2,953,938 69.6 % Hospitality 503,251 9.4 % 460,884 10.9 % Office 456,866 8.6 % 485,575 11.4 % Retail 172,503 3.2 % 104,990 2.5 % Industrial 93,035 1.7 % 88,956 2.1 % Mixed Use 52,500 1.0 % 62,965 1.5 % Self Storage 44,895 0.8 % 56,495 1.3 % Manufactured Housing 34,688 0.6 % 29,159 0.7 % Total $ 5,350,728 100.0 % $ 4,242,962 100.0 % September 30, 2022 December 31, 2021 Loan Region Par Value Percentage Par Value Percentage Southeast $ 2,158,660 40.4 % $ 1,106,439 26.2 % Southwest 1,757,121 32.9 % 1,764,905 41.6 % Mideast 781,379 14.6 % 646,125 15.2 % Far West 232,734 4.3 % 301,040 7.1 % Great Lakes 169,191 3.2 % 183,930 4.3 % Various 109,230 2.0 % 68,896 1.6 % New England 66,065 1.2 % 67,651 1.6 % Rocky Mountain 43,751 0.8 % 43,751 1.0 % Plains 32,597 0.6 % 60,225 1.4 % Total $ 5,350,728 100.0 % $ 4,242,962 100.0 % As of September 30, 2022 and December 31, 2021, the Company's total commercial mortgage loans, held for sale, measured at fair value were comprised of three loans and one loan, respectively. As of September 30, 2022 and December 31, 2021, the contractual principal outstanding of commercial mortgage loans, held for sale, measured at fair value was $44.5 million and $34.3 million, respectively. As of September 30, 2022 and December 31, 2021, none of the Company's commercial mortgage loans, held for sale, measured at fair value were in default or greater than ninety days past due. The following tables represent the composition by loan collateral type and region of the Company's commercial mortgage loans, held for sale, measured at fair value (dollars in thousands): September 30, 2022 December 31, 2021 Loan Collateral Type Par Value Percentage Par Value Percentage Retail $ 25,000 56.1 % $ — — % Hospitality 19,546 43.9 % — — % Office — — % 34,250 100.0 % Total $ 44,546 100.0 % $ 34,250 100.0 % September 30, 2022 December 31, 2021 Loan Region Par Value Percentage Par Value Percentage Southeast $ 37,996 85.3 % $ 34,250 100.0 % Mideast 6,550 14.7 % — — % Total $ 44,546 100.0 % $ 34,250 100.0 % Loan Credit Quality and Vintage The following tables present the amortized cost of our commercial mortgage loans, held for investment as of September 30, 2022 and December 31, 2021, by loan collateral type, the Company’s internal risk rating and year of origination. The risk ratings are updated as of September 30, 2022. As of September 30, 2022 2022 2021 2020 2019 2018 2017 Total Multifamily: Risk Rating: 1-2 internal grade $ 1,402,934 $ 2,276,836 $ 92,829 $ — $ 37,851 $ — $ 3,810,450 3-4 internal grade — 95,036 10,852 24,058 37,025 — 166,971 Total Multifamily Loans $ 1,402,934 $ 2,371,872 $ 103,681 $ 24,058 $ 74,876 $ — $ 3,977,421 Retail: Risk Rating: 1-2 internal grade $ 20,941 $ 33,870 $ — $ 8,203 $ — $ — $ 63,014 3-4 internal grade — — — — — — — 5 internal grade 105,498 — — — — — 105,498 Total Retail Loans $ 126,439 $ 33,870 $ — $ 8,203 $ — $ — $ 168,512 Office: Risk Rating: 1-2 internal grade $ — $ 50,343 $ 203,840 $ 108,152 $ 18,746 $ — $ 381,081 3-4 internal grade — — 36,343 25,736 12,977 — 75,056 Total Office Loans $ — $ 50,343 $ 240,183 $ 133,888 $ 31,723 $ — $ 456,137 Industrial: Risk Rating: 1-2 internal grade $ 77,712 $ — $ 14,946 $ — $ — $ — $ 92,658 3-4 internal grade — — — — — — — Total Industrial Loans $ 77,712 $ — $ 14,946 $ — $ — $ — $ 92,658 Mixed Use: Risk Rating: 1-2 internal grade $ 19,926 $ 32,446 $ — $ — $ — $ — $ 52,372 3-4 internal grade — — — — — — — Total Mixed Use Loans $ 19,926 $ 32,446 $ — $ — $ — $ — $ 52,372 Hospitality: Risk Rating: 1-2 internal grade $ 129,645 $ 155,287 $ 26,956 $ 58,814 $ 22,195 $ — $ 392,897 3-4 internal grade — — — 29,966 — 78,928 108,894 Total Hospitality Loans $ 129,645 $ 155,287 $ 26,956 $ 88,780 $ 22,195 $ 78,928 $ 501,791 Self-Storage: Risk Rating: 1-2 internal grade $ — $ 14,976 $ 29,846 $ — $ — $ — $ 44,822 3-4 internal grade — — — — — — — Total Self-Storage Loans $ — $ 14,976 $ 29,846 $ — $ — $ — $ 44,822 Manufactured Housing: Risk Rating: 1-2 internal grade $ 10,469 $ 6,674 $ 17,417 $ — $ — $ — $ 34,560 3-4 internal grade — — — — — — — Total Manufactured Housing Loans $ 10,469 $ 6,674 $ 17,417 $ — $ — $ — $ 34,560 Total $ 1,767,125 $ 2,665,468 $ 433,029 $ 254,929 $ 128,794 $ 78,928 $ 5,328,273 As of December 31, 2021 2021 2020 2019 2018 2017 Total Multifamily: Risk Rating: 1-2 internal grade $ 2,438,376 $ 270,953 $ 103,989 $ 90,877 $ — $ 2,904,195 3-4 internal grade — — — 37,025 — 37,025 Total Multifamily Loans $ 2,438,376 $ 270,953 $ 103,989 $ 127,902 $ — $ 2,941,220 Retail: Risk Rating: 1-2 internal grade $ 33,830 $ 11,928 $ 29,515 $ 29,452 $ — $ 104,725 3-4 internal grade — — — — — — Total Retail Loans $ 33,830 $ 11,928 $ 29,515 $ 29,452 $ — $ 104,725 Office: Risk Rating: 1-2 internal grade $ 50,291 $ 253,759 $ 136,800 $ 43,308 $ — $ 484,158 3-4 internal grade — — — — — — Total Office Loans $ 50,291 $ 253,759 $ 136,800 $ 43,308 $ — $ 484,158 Industrial: Risk Rating: 1-2 internal grade $ — $ 31,906 $ — $ — $ — $ 31,906 3-4 internal grade — — 56,933 — — 56,933 Total Industrial Loans $ — $ 31,906 $ 56,933 $ — $ — $ 88,839 Mixed Use: Risk Rating: 1-2 internal grade $ 32,395 $ 30,325 $ — $ — $ — $ 62,720 3-4 internal grade — — — — — — Total Mixed Use Loans $ 32,395 $ 30,325 $ — $ — $ — $ 62,720 Hospitality: Risk Rating: 1-2 internal grade $ 153,032 $ 26,920 $ 34,054 $ — $ — $ 214,006 3-4 internal grade — — 113,961 52,790 79,102 245,853 Total Hospitality Loans $ 153,032 $ 26,920 $ 148,015 $ 52,790 $ 79,102 $ 459,859 Self-Storage: Risk Rating: 1-2 internal grade $ 14,948 $ 41,382 $ — $ — $ — $ 56,330 3-4 internal grade — — — — — — Total Self-Storage Loans $ 14,948 $ 41,382 $ — $ — $ — $ 56,330 Manufactured Housing: Risk Rating: 1-2 internal grade $ 6,665 $ 22,372 $ — $ — $ — $ 29,037 3-4 internal grade — — — — — — Total Manufactured Housing Loans $ 6,665 $ 22,372 $ — $ — $ — $ 29,037 Total $ 2,729,537 $ 689,545 $ 475,252 $ 253,452 $ 79,102 $ 4,226,888 Past Due Status The following table presents an aging summary of the loans amortized cost basis as of September 30, 2022 (dollars in thousands): Multifamily Retail Office Industrial Mixed Use Hospitality Self-Storage Manufactured Housing Total Status: Current $ 3,977,421 $ 63,014 $ 456,137 $ 92,658 $ 52,372 $ 444,716 $ 44,822 $ 34,560 $ 5,165,700 1-29 days past due — — — — — — — — 30-59 days past due — — — — — — — — — 60-89 days past due — — — — — — — — — 90-119 days past due — — — — — — — — — 120+ days past due (1) — 105,498 — — — 57,075 — — 162,573 Total $ 3,977,421 $ 168,512 $ 456,137 $ 92,658 $ 52,372 $ 501,791 $ 44,822 $ 34,560 $ 5,328,273 _________________________________________________________ (1) For the three and nine months ended September 30, 2022, there was no interest income recognized on these loans. Non-performing Status The following table presents the amortized cost basis of the loans on nonaccrual status as of September 30, 2022 and December 31, 2021 (dollars in thousands): September 30, 2022 December 31, 2021 Non-performing loan amortized cost at beginning of year, January 1 $ 57,075 $ 94,887 Addition of non-performing loan amortized cost 105,498 — Less: Removal of non-performing loan amortized cost — 37,812 Non-performing loan amortized cost at end of period $ 162,573 $ 57,075 As of September 30, 2022, the Company had two loans with a total amortized cost basis of $162.6 million designated as non-performing status. One loan is for a hotel property located in New York, NY, which was placed on non-accrual status in 2019 and had an amortized cost basis of $57.1 million as of September 30, 2022. No specific allowance for credit losses has been recorded on the loan. The Company did not recognize any interest income on the non-accrual loan during the three and nine months ended September 30, 2022. The second loan relates to a commercial mortgage loan with a fully funded outstanding principal balance of $109.2 million collateralized by a portfolio of retail properties in various locations throughout the United States. The loan has been assigned a risk rating of “5” and concurrently, the Company elected to apply a practical expedient for collateral dependent assets in which the allowance for credit losses is calculated as the difference between the estimated fair value of the underlying collateral, less estimated cost to sell, and the amortized cost basis of the individual loan. As of September 30, 2022, the Company has recorded a specific allowance for credit losses of $27.6 million on this loan. Further, the Company has designated the loan as non-performing and placed the loan on cost recovery status by ceasing the recognition of interest income. Any contractual amounts received are accounted for under the cost-recovery method, until the loan qualifies for return to accrual status. As of September 30, 2022, the Company has received $6.4 million in cost recovery proceeds, which reduced the amortized cost of the loan. As of December 31, 2021, the Company had one loan, the hotel property in New York City, with a carrying value of $57.1 million, designated as non-performing, which had no specific allowance for credit losses. Credit Characteristics As part of the Company's process for monitoring the credit quality of its commercial mortgage loans, excluding those held for sale, measured at fair value, it performs a quarterly loan portfolio assessment and assigns risk ratings to each of its loans. The loans are scored on a scale of 1 to 5 as follows: Investment Rating Summary Description 1 Very Low Risk - Investment exceeding fundamental performance expectations and/or capital gain expected. Trends and risk factors since time of investment are favorable. 2 Low Risk - Performing consistent with expectations and a full return of principal and interest expected. Trends and risk factors are neutral to favorable. 3 Average Risk - Performing investments requiring closer monitoring. Trends and risk factors show some deterioration. 4 High Risk/Defaulted/Potential For Loss - Underperforming investment with the potential of some interest loss but still expecting a positive return on investment. Trends and risk factors are negative. 5 Impaired/Loss Likely - Underperforming investment with expected loss of interest and some principal. All commercial mortgage loans, excluding loans classified as commercial mortgage loans, held for sale, measured at fair value within the consolidated balance sheets, are assigned an initial risk rating of 2. As of September 30, 2022 and December 31, 2021, the weighted average risk rating of the loans was 2.1. The following table represents the allocation by risk rating for the Company's commercial mortgage loans, held for investment (dollars in thousands): September 30, 2022 December 31, 2021 Risk Rating Number of Loans Par Value Risk Rating Number of Loans Par Value 1 — $ — 1 — $ — 2 148 4,890,312 2 148 3,903,047 3 14 244,109 3 16 282,840 4 3 107,077 4 1 57,075 5 1 109,230 5 — — 166 $ 5,350,728 165 $ 4,242,962 For the nine months ended September 30, 2022 and year ended December 31, 2021, the activity in the Company's commercial mortgage loans, held for investment portfolio was as follows (dollars in thousands): Nine Months Ended September 30, 2022 Year Ended December 31, 2021 Balance at Beginning of Year $ 4,211,061 $ 2,693,848 Acquisitions and originations 1,980,296 2,897,002 Principal repayments (863,186) (1,286,598) Discount accretion/premium amortization 8,780 7,038 Loans transferred from/(to) commercial real estate loans, held for sale (9,296) (52,615) Net fees capitalized into carrying value of loans (12,803) (15,150) General (provision)/benefit for credit losses (3,368) 4,770 Specific (provision)/benefit for credit losses (27,620) — Cost recovery (2,406) — Charge-off from allowance — 289 Transfer to real estate owned — (37,523) Balance at End of Period $ 5,281,458 $ 4,211,061 |
Real Estate Securities
Real Estate Securities | 9 Months Ended |
Sep. 30, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Real Estate Securities | Real Estate Securities Real Estate Securities Classified As Trading The following is a summary of the Company's RMBS classified by collateral type and interest rate characteristics (dollars in thousands): Carrying Amount Average Yield (1) September 30, 2022 Agency Securities: Fannie Mae/Freddie Mac ARMs $ 252,491 2.48 % December 31, 2021 Agency Securities: Fannie Mae/Freddie Mac ARMs $ 4,246,803 2.23 % Ginnie Mae ARMs 320,068 2.72 % $ 4,566,871 2.26 % ________________________________________________________ (1) Average yield is presented for the period then ended, and is based on the cash component of interest income expressed as a percentage on average cost basis (the “cash yield”). The maturity of the Company's ARM Agency Securities is directly affected by prepayments of principal on the underlying mortgage loans. Consequently actual maturities may be significantly shorter than the portfolio’s September 30, 2022 weighted average contractual maturity of 184 months. The Company's ARM Agency Securities are backed by residential mortgage loans that have coupon interest rates that adjust at least annually to more current interest rates or begin doing so after an initial fixed-rate period. After the initial fixed-rate period, if applicable, mortgage loans underlying ARM securities typically either (i) adjust annually based on specified margins over the one-year London interbank offered rate (“LIBOR”) or the one-year Constant Maturity U.S. Treasury Note Rate (“CMT”), (ii) adjust semiannually based on specified margins over six-month LIBOR or the six-month Secured Overnight Financing Rate (“SOFR”), or (iii) adjust monthly based on specified margins over indices such as one-month LIBOR, the Eleventh District Federal Reserve Bank Cost of Funds Index, or over a rolling twelve month average of the one-year CMT index, usually subject to periodic and lifetime limits, or caps, on the amount of such adjustments during any single interest rate adjustment period and over the contractual term of the underlying loans. No trading securities were sold during the three months ended September 30, 2022. During the nine months ended September 30, 2022, the Company sold trading securities using the specific identification method for proceeds totaling $3.8 billion, respectively. Real Estate Securities Classified As Available For Sale The following is a summary of the Company's real estate securities, CRE CLO bonds, as of September 30, 2022 (in thousands): September 30, 2022 Type Interest Rate Maturity Par Value Fair Value CRE CLO bond 1 5.8% 8/19/2035 $ 40,000 $ 39,800 CRE CLO bond 2 6.3% 8/19/2035 25,000 24,875 CRE CLO bond 3 7.1% 8/19/2035 10,000 9,950 $ 75,000 $ 74,625 The Company classified its CRE CLO bonds as available for sale and reported them at fair value in the consolidated balance sheets with changes in fair value recorded in accumulated other comprehensive income/(loss) as of September 30, 2022. The weighted average contractual maturity for CLO investments included within the CRE CLO bonds portfolio as of September 30, 2022 was 13 years. As of December 31, 2021, the Company did not hold any Real Estate Securities classified as Available for Sale. The following table shows the amortized cost, allowance for expected credit losses, unrealized gain/(loss) and fair value of the Company's CRE CLO bonds by investment type as of September 30, 2022 (dollars in thousands): Amortized Cost Credit Loss Allowance Unrealized Gain Unrealized Loss Fair Value September 30, 2022 CLOs $ 74,998 $ — $ — $ (373) $ 74,625 |
Real Estate Owned
Real Estate Owned | 9 Months Ended |
Sep. 30, 2022 | |
Real Estate [Abstract] | |
Real Estate Owned | Real Estate Owned The following table summarizes the Company's real estate owned asset, held for investment, as of September 30, 2022 (dollars in thousands): Acquisition Date Property Type Primary Location(s) Land Building and Improvements Furniture, Fixtures and Equipment Accumulated Depreciation Real Estate Owned, net September 2021 Industrial Jeffersonville, GA $ 3,436 $ 84,259 $ 2,928 $ (2,301) $ 88,322 The following table summarizes the Company's real estate owned asset, held for investment, as of December 31, 2021 (dollars in thousands): Acquisition Date Property Type Primary Location(s) Land Building and Improvements Furniture, Fixtures and Equipment Accumulated Depreciation Real Estate Owned, net September 2021 Industrial Jeffersonville, GA $ 3,436 $ 84,259 $ 2,928 $ (575) $ 90,048 Depreciation expense for the three and nine months ended September 30, 2022 totaled $0.6 million and $1.7 million, respectively. Depreciation expense for the nine months ended September 30, 2021, totaled $0.4 million. There was no depreciation expense for the three months ended September 30, 2021. In August 2021 the Company and an affiliate of the Company entered into a joint venture agreement and formed a joint venture entity, Jeffersonville Member, LLC (the "Jeffersonville JV") to acquire a $139.5 million triple net lease property in Jeffersonville, GA. The Company has a 79% interest in the Jeffersonville JV, while the affiliate has a 21% interest. The Company invested a total of $109.8 million, made up of $88.7 million in debt and $21.1 million in equity, representing 79% of the ownership interest in the Jeffersonville JV. The affiliate made up the remaining $29.8 million composed of a $24.0 million mortgage note payable and $5.7 million in equity. The Company has control of Jeffersonville JV with 79% ownership and, therefore, consolidates Jeffersonville JV on its consolidated balance sheet. The Company's $88.7 million mortgage note payable to Jeffersonville JV is eliminated in consolidation (see Note 7 - Debt). |
Leases
Leases | 9 Months Ended |
Sep. 30, 2022 | |
Leases [Abstract] | |
Leases | Leases Intangible Lease Asset The following table summarizes the Company's intangible lease asset recognized in the consolidated balance sheets as of September 30, 2022 (dollars in thousands): Acquisition Date Property Type Primary Location(s) Intangible Lease Asset, Gross Accumulated Amortization Intangible Lease Asset, Net of Amortization September 2021 Industrial Jeffersonville, GA $ 49,192 $ (2,879) $ 46,313 The following table summarizes the Company's intangible lease asset recognized in the consolidated balance sheets as of December 31, 2021 (dollars in thousands): Acquisition Date Property Type Primary Location(s) Intangible Lease Asset, Gross Accumulated Amortization Intangible Lease Asset, Net of Amortization September 2021 Industrial Jeffersonville, GA $ 49,192 $ (720) $ 48,472 Rental Income On September 17, 2021, the Company, through the joint venture described in Note 5 - Real Estate Owned, purchased an industrial facility that is subject to an existing triple net lease. The minimum rental amount due under the lease is subject to annual increases of 2.0%. The initial term of the lease expires in 2038 and contains renewal options for four consecutive five-year terms. The remaining lease term is 16.1 years. Rental income for this lease totaled $2.3 million and $0.3 million for the three months ended September 30, 2022 and 2021, respectively, and $6.9 million and $0.3 million for the nine months ended September 30, 2022 and 2021, respectively. Rental income is included in Revenue from real estate owned in the consolidated statements of operations. On October 15, 2019, the Company purchased an office building that was subject to an existing triple net lease. The minimum rental amount due under the lease was subject to annual increases of 1.5%. The initial term of the lease expires in 2037 and contained renewal options for four consecutive five-year terms. The Company sold the real estate owned asset during the three months ended September 30, 2021. Rental income for this lease for each of the three and nine months ended September 30, 2021 totaled $0.7 million and $2.1 million, respectively. Rental income is included in Revenue from real estate owned in the consolidated statements of operations. The following table summarizes the Company's schedule of future minimum rents to be received under the lease as described above (dollars in thousands): Future Minimum Rents September 30, 2022 2022 (October - December) $ 1,992 2023 8,046 2024 8,207 2025 8,372 2026 8,539 2027 and beyond 114,981 Total future minimum rent $ 150,137 Amortization Expense Intangible lease assets are amortized using the straight-line method over the shorter of the contractual life of the lease and 20 years. The weighted average life of the intangible asset as of September 30, 2022 is approximately 16.1 years. Amortization expense totaled $0.7 million for the three months ended September 30, 2022. There was no amortization expense incurred during the three months ended September 30, 2021. Amortization expense totaled $2.2 million and $0.4 million for the nine months ended September 30, 2022 and 2021, respectively. Amortization expense is included within Depreciation and amortization expense in the consolidated statements of operations. The following table summarizes the Company's expected amortization for intangible assets over the next five years, assuming no further acquisitions or dispositions (dollars in thousands): Amortization Expense September 30, 2022 2022 (October - December) $ (720) 2023 (2,880) 2024 (2,880) 2025 (2,880) 2026 (2,880) |
Leases | Leases Intangible Lease Asset The following table summarizes the Company's intangible lease asset recognized in the consolidated balance sheets as of September 30, 2022 (dollars in thousands): Acquisition Date Property Type Primary Location(s) Intangible Lease Asset, Gross Accumulated Amortization Intangible Lease Asset, Net of Amortization September 2021 Industrial Jeffersonville, GA $ 49,192 $ (2,879) $ 46,313 The following table summarizes the Company's intangible lease asset recognized in the consolidated balance sheets as of December 31, 2021 (dollars in thousands): Acquisition Date Property Type Primary Location(s) Intangible Lease Asset, Gross Accumulated Amortization Intangible Lease Asset, Net of Amortization September 2021 Industrial Jeffersonville, GA $ 49,192 $ (720) $ 48,472 Rental Income On September 17, 2021, the Company, through the joint venture described in Note 5 - Real Estate Owned, purchased an industrial facility that is subject to an existing triple net lease. The minimum rental amount due under the lease is subject to annual increases of 2.0%. The initial term of the lease expires in 2038 and contains renewal options for four consecutive five-year terms. The remaining lease term is 16.1 years. Rental income for this lease totaled $2.3 million and $0.3 million for the three months ended September 30, 2022 and 2021, respectively, and $6.9 million and $0.3 million for the nine months ended September 30, 2022 and 2021, respectively. Rental income is included in Revenue from real estate owned in the consolidated statements of operations. On October 15, 2019, the Company purchased an office building that was subject to an existing triple net lease. The minimum rental amount due under the lease was subject to annual increases of 1.5%. The initial term of the lease expires in 2037 and contained renewal options for four consecutive five-year terms. The Company sold the real estate owned asset during the three months ended September 30, 2021. Rental income for this lease for each of the three and nine months ended September 30, 2021 totaled $0.7 million and $2.1 million, respectively. Rental income is included in Revenue from real estate owned in the consolidated statements of operations. The following table summarizes the Company's schedule of future minimum rents to be received under the lease as described above (dollars in thousands): Future Minimum Rents September 30, 2022 2022 (October - December) $ 1,992 2023 8,046 2024 8,207 2025 8,372 2026 8,539 2027 and beyond 114,981 Total future minimum rent $ 150,137 Amortization Expense Intangible lease assets are amortized using the straight-line method over the shorter of the contractual life of the lease and 20 years. The weighted average life of the intangible asset as of September 30, 2022 is approximately 16.1 years. Amortization expense totaled $0.7 million for the three months ended September 30, 2022. There was no amortization expense incurred during the three months ended September 30, 2021. Amortization expense totaled $2.2 million and $0.4 million for the nine months ended September 30, 2022 and 2021, respectively. Amortization expense is included within Depreciation and amortization expense in the consolidated statements of operations. The following table summarizes the Company's expected amortization for intangible assets over the next five years, assuming no further acquisitions or dispositions (dollars in thousands): Amortization Expense September 30, 2022 2022 (October - December) $ (720) 2023 (2,880) 2024 (2,880) 2025 (2,880) 2026 (2,880) |
Debt
Debt | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Debt | Debt Repurchase Agreements - Commercial Mortgage Loans The Company has entered into repurchase facilities with JPMorgan Chase Bank, National Association (the "JPM Repo Facility"), Barclays Bank PLC (the "Barclays Revolver Facility" and the "Barclays Repo Facility"), Wells Fargo Bank, National Association (the "WF Repo Facility"), and Credit Suisse AG (the "CS Repo Facility" and together with JPM Repo Facility, WF Repo Facility, Barclays Revolver Facility, and Barclays Repo Facility, the "Repo Facilities"). The Repo Facilities are financing sources through which the Company may pledge one or more mortgage loans to the financing entity in exchange for funds typically at an advance rate of between 65% to 75% of the principal amount of the mortgage loan being pledged. The details of the Company's Repo Facilities as of September 30, 2022 and December 31, 2021 are as follows (dollars in thousands): As of September 30, 2022 Repurchase Facility Committed Financing Amount Outstanding Interest Expense (1) Ending Weighted Average Interest Rate Term Maturity JPM Repo Facility (2) $ 500,000 $ 235,548 $ 6,857 5.78 % 10/6/2023 CS Repo Facility (3) 600,000 265,801 5,048 5.61 % 7/11/2023 WF Repo Facility (4) 500,000 40,476 6,027 5.17 % 11/21/2023 Barclays Revolver Facility (5) 250,000 — 1,109 N/A 9/20/2023 Barclays Repo Facility (6) 500,000 157,583 6,102 5.19 % 3/14/2025 Total $ 2,350,000 $ 699,408 $ 25,143 ________________________________________________________ (1) For the nine months ended September 30, 2022. Includes amortization of deferred financing costs. (2) With one-year extension option available at the Company's discretion. On July 7, 2022, the committed financing was increased from $400 million to $500 million . Additionally, on September 29, 2022, the Company extended the maturity date to October 6, 2023 (3) O n July 12, 2022, the maturity date was extended to July 11, 2023 and the committed financing was increased from $300 million to $600 million . (4) On May 12, 2022, the committed financing amount was increased from $450 million to $500 million. There are three more one-year extension options available at the Company's discretion. (5) The Company may increase the total commitment amount by an amount between $100 million and $150 million for three month intervals, on an unlimited basis prior to maturity. (6) There are two one-year extension options available at the Company's discretion. As of December 31, 2021 Repurchase Facility Committed Financing Amount Outstanding Interest Expense (1) Ending Weighted Average Interest Rate Term Maturity JPM Repo Facility $ 400,000 $ 136,470 $ 5,178 2.13 % 10/6/2022 CS Repo Facility 300,000 137,364 3,446 2.43 % 9/30/2022 WF Repo Facility 450,000 186,734 2,090 1.64 % 11/21/2023 Barclays Revolver Facility 250,000 166,700 1,976 6.12 % 9/20/2023 Barclays Repo Facility 500,000 392,332 4,057 1.76 % 3/14/2025 Total $ 1,900,000 $ 1,019,600 $ 16,747 ________________________________________________________ (1) For the year ended December 31, 2021. Includes amortization of deferred financing costs. The Company expects to use the advances from the Repo Facilities to finance the acquisition or origination of eligible loans, including first mortgage loans, subordinated mortgage loans, mezzanine loans and participation interests therein. The Repo Facilities generally provide that in the event of a decrease in the value of the Company's collateral, the lenders can demand additional collateral. As of September 30, 2022 and December 31, 2021, the Company is in compliance with all debt covenants. Other financing and loan participation - Commercial Mortgage Loans On March 23, 2020, the Company transferred $15.2 million of its interest in a term loan to Webster Bank (formerly Sterling National Bank) via a participation agreement. Since inception, the Company's outstanding loan increased as a result of future fundings, leading to an increase in amount outstanding via the participation agreement. The Company incurred $0.5 million and $1.0 million of interest expense on the Webster Bank term loan for the three and nine months ended September 30, 2022, respectively. As of September 30, 2022 the outstanding participation balance was $40.7 million. The loan accrued interest at an annual rate of one-month LIBOR +2.20% and matures on February 9, 2023. On February 10, 2022, the Company transferred $38.0 million of its interest in a term loan to a regional bank via a participation agreement. Since inception, the Company's outstanding loan increased as a result of future fundings, leading to an increase in amount outstanding via the participation agreement. The Company incurred $0.1 million and $0.2 million of interest expense on the regional bank term loan for the three and nine months ended September 30, 2022, respectively. As of September 30, 2022 the outstanding participation balance was $12.5 million. The loan accrued interest at an annual rate of one-month SOFR + 4.01% and matures on May 1, 2025. Mortgage Note Payable On September 17, 2021, the Company, in connection with the consolidated joint venture (as discussed in Note 5 - Real Estate Owned), originated a $112.7 million mortgage note payable, of which $88.7 million is eliminated in consolidation (see Note 5 - Real Estate Owned). The remaining mortgage note payable of $24.0 million is recorded on the consolidated balance sheet. As of September 30, 2022, the loan accrued interest at an annual rate of 3.1% and matures on October 9, 2024. Unsecured Debt As of September 30, 2022, the Company had outstanding 30-year junior subordinated notes issued in 2005 and 2006 and maturing in 2035 and 2036, respectively, with a total face amount of $100.0 million. Note balances net of deferred issuance costs, and related weighted average interest rates as of the indicated dates (calculated including issuance cost amortization and adjusted for the effects of related derivatives held as cash flow hedges prior to termination) were as follows (dollars in thousands): As of September 30, 2022 As of December 31, 2021 Borrowings Weighted Average Borrowings Weighted Average Junior subordinated notes maturing in: October 2035 ($35,000 face amount) $ 34,499 3.72 % $ 34,470 7.86 % December 2035 ($40,000 face amount) 39,503 3.49 % 39,474 7.63 % September 2036 ($25,000 face amount) 24,668 3.49 % 24,650 7.67 % $ 98,670 3.57 % $ 98,594 7.72 % The notes are currently redeemable, in whole or in part, without penalty, at the Company’s option. Pursuant to a lending and security agreement with Security Benefit Life Insurance Company ("SBL"), which was entered into in February 2020 and amended in March and August 2020, the Company may borrow up to $100.0 million at a rate of one-month LIBOR + 4.5%. The facility has a maturity of February 10, 2023 and is secured by a pledge of equity interests in certain of the Company’s subsidiaries. The Company incurred $0.2 million and $0.7 million of interest expense on the lending agreement with SBL for the three and nine months ended September 30, 2022, respectively. As of September 30, 2022, there was no outstanding balance. As of December 31, 2021, the outstanding balance was $50.0 million. Repurchase Agreements - Real Estate Securities The Company has entered into various Master Repurchase Agreements (the "MRAs") that allow the Company to sell real estate securities while providing a fixed repurchase price for the same real estate securities in the future. The repurchase contracts on each security under an MRA generally mature in 30-90 days and terms are adjusted for current market rates as necessary. Below is a summary of the Company's MRAs as of September 30, 2022 and December 31, 2021 (dollars in thousands): Weighted Average Counterparty Amount Outstanding Interest Expense Collateral Pledged (1) Interest Rate Days to Maturity As of September 30, 2022 JP Morgan Securities LLC $ 48,817 $ 301 $ 57,468 3.95 % 27 Goldman Sachs International — — — N/A N/A Barclays Capital Inc. 63,796 513 80,331 3.78 % 19 Citigroup Global Markets, Inc. — — — N/A N/A Total/Weighted Average $ 112,613 $ 814 $ 137,799 3.85 % 23 As of December 31, 2021 JP Morgan Securities LLC $ 19,025 $ 261 $ 24,087 1.14 % 10 Goldman Sachs International — 37 — N/A N/A Barclays Capital Inc. 15,286 526 19,131 1.21 % 14 Citigroup Global Markets, Inc. — 81 — N/A N/A Total/Weighted Average $ 34,311 $ 905 $ 43,218 1.71 % 12 ________________________________________________________ (1) Includes $62.9 million and $43.2 million of CLO notes, held by the Company, which are eliminated within the real estate securities, at fair value line in the consolidated balance sheets as of September 30, 2022 and December 31, 2021, respectively. Repurchase Agreements - Real Estate Securities Classified As Trading The Company pledges its real estate securities classified as trading as collateral for repurchase agreements with commercial banks and other financial institutions. Repurchase arrangements entered into by the Company involve the sale and a simultaneous agreement to repurchase the transferred assets at a future date and are accounted for as financings. The Company maintains the beneficial interest in the specific securities pledged during the term of each repurchase arrangement and receives the related principal and interest payments. The terms and conditions of repurchase agreements are negotiated on a transaction-by-transaction basis when each such agreement is initiated or renewed. The amount borrowed is generally equal to the fair value of the securities pledged, as determined by the lending counterparty, less an agreed-upon discount, referred to as a “haircut.” Interest rates are generally fixed based on prevailing rates corresponding to the terms of the borrowings. Interest may be paid monthly or at the termination of an agreement at which time the Company may enter into a new agreement at prevailing haircuts and rates with the same lending counterparty or repay that counterparty and negotiate financing with a different lending counterparty. None of the Company’s lending counterparties are obligated to renew or otherwise enter into new agreements at the conclusion of existing agreements. In response to declines in fair value of pledged securities due to changes in market conditions or the publishing of monthly security pay-down factors, lending counterparties typically require the Company to post additional securities as collateral, pay down borrowings or fund cash margin accounts with the counterparties in order to re-establish the agreed-upon collateral requirements. These actions are referred to as margin calls. Conversely, in response to increases in fair value of pledged securities, the Company routinely margin calls its lending counterparties in order to have previously pledged collateral returned. Repurchase agreements (and related pledged collateral, including accrued interest receivable), classified by remaining maturities, and related weighted average borrowing rates as of the indicated dates were as follows (dollars in thousands): Collateral Accrued Borrowings Weighted Average As of September 30, 2022 Repurchase arrangements secured by Agency securities with maturities of 30 days or less $ 235,563 $ 528 $ 225,000 3.16 % As of December 31, 2021 Repurchase arrangements secured by Agency securities with maturities of 30 days or less $ 4,327,020 $ 8,908 $ 4,144,473 0.13 % Average repurchase agreements outstanding were $230.0 million and $4.0 billion during the three months ended September 30, 2022 and December 31, 2021, respectively. Average repurchase agreements outstanding differed from respective quarter-end balances during the indicated periods primarily due to changes in portfolio levels and differences in the timing of portfolio acquisitions relative to portfolio runoff and asset sales. Collateralized Loan Obligations On May 13, 2022, the Company called all of the outstanding notes issued by BSPRT 2018-FL4 Issuer, Ltd., a wholly owned indirect subsidiary of the Company. The outstanding principal of the notes on the date of the call was $69.5 million. The Company recognized all the remaining unamortized deferred financing costs of $5.2 million recorded within the Interest expense line of the consolidated statements of operations, which was a non-cash charge. As of September 30, 2022 and December 31, 2021, the notes issued by BSPRT 2019-FL5 Issuer, Ltd. and BSPRT 2019-FL5 Co-Issuer, LLC, each wholly owned indirect subsidiaries of the Company, are collateralized by interests in a pool of 30 and 48 mortgage assets having a principal balance of $452.2 million and $589.0 million respectively (the "2019-FL5 Mortgage Assets"). The sale of the 2019-FL5 Mortgage Assets to BSPRT 2019-FL5 Issuer is governed by a Mortgage Asset Purchase Agreement dated as of May 30, 2019, between the Company and BSPRT 2019-FL5 Issuer. As of September 30, 2022 and December 31, 2021 , the notes issued by BSPRT 2021-FL6 Issuer, Ltd. and BSPRT 2021-FL6 Co-Issuer, LLC, each wholly owned indirect subsidiaries of the Company , are collateralized by interests in a pool of 58 and 44 mortgage assets having a principal balance of $695.8 million and $682.3 million respectively (the "2021-FL6 Mortgage Assets"). The sale of the 2021-FL6 Mortgage Assets to BSPRT 2021-FL6 Issuer, Ltd. is governed by a Collateral Interest Purchase Agreement dated as of March 25, 2021, between the Company and BSPRT 2021-FL6 Issuer, Ltd. As of September 30, 2022 and December 31, 2021 , the notes issued by BSPRT 2021-FL7 Issuer, Ltd. and BSPRT 2021-FL7 Co-Issuer, LLC, each wholly owned indirect subsidiaries of the Company , are collateralized by interests in a pool of 38 and 47 mortgage assets having a principal balance of $859.6 million and $871.4 million respectively (the "2021-FL7 Mortgage Assets"). The sale of the 2021-FL7 Mortgage Assets to BSPRT 2021-FL7 Issuer, Ltd. is governed by a Collateral Interest Purchase Agreement dated as of March 25, 2021, between the Company and BSPRT 2021-FL7 Issuer, Ltd. On February 15, 2022, BSPRT 2022-FL8 Issuer, Ltd. and BSPRT 2022-FL8 Co-Issuer, LLC, both wholly owned indirect subsidiaries of the Company entered into an indenture with the OP, as advancing agent and U.S. Bank National Association, as note administrator and trustee, which governs the issuance of approximately $1.1 billion principal balance secured floating rate notes, of which $960.0 million were purchased by third party investors and $132.0 million were purchased by a wholly owned subsidiary of the OP. In addition, concurrently with the issuance of the notes, BSPRT 2022-FL8 Issuer, Ltd. also issued 108,000 preferred shares, par value of $0.001 per share and with an aggregate liquidation preference and notional amount equal to $1,000 per share, which were not offered as part of closing the indenture. For U.S. federal income tax purposes, BSPRT 2022-FL8 Issuer, Ltd. and BSPRT 2022-FL8 Co-Issuer, LLC are disregarded entities. As of September 30, 2022 , the notes issued by BSPRT 2022-FL8 Issuer, Ltd. and BSPRT 2022-FL8 Co-Issuer, LLC, are collateralized by interests in a pool of 31 mortgage assets having a principal balance of $1.2 billion (the "2022-FL8 Mortgage Assets"). The sale of the 2022-FL8 Mortgage Assets to BSPRT 2022-FL8 Issuer, Ltd. is governed by a Collateral Interest Purchase Agreement dated as of December 21, 2021, between the Company and BSPRT 2022-FL8 Issuer, Ltd. On June 29, 2022, BSPRT 2022-FL9 Issuer, LLC, a wholly-owned indirect subsidiary of the Company, entered into an indenture with the OP, as advancing agent, U.S. Bank Trust Company, National Association, as trustee and note administrator, and U.S. Bank National Association, as custodian and in other capacities, which governs the issuance of approximately $740.9 million principal balance secured floating rate notes, of which $670.6 million were purchased by third party investors and $70.3 million were purchased by a wholly-owned subsidiary of the OP. In addition, concurrently with the issuance of the notes, BSPRT 2022-FL9 Issuer, LLC also issued 62,246 preferred shares, par value of $0.001 per share and with an aggregate liquidation preference and notional amount equal to $1,000 per share, which were not offered as part of closing the indenture. For U.S. federal income tax purposes, BSPRT 2022-FL9 Issuer, LLC is a disregarded entity. As of September 30, 2022, the notes issued by BSPRT 2022-FL9 Issuer, LLC are collateralized by interests in a pool of 34 mortgage assets having a principal balance of $767.8 million (the "2022-FL9 Mortgage Assets"). The sale of the 2022-FL9 Mortgage Assets to BSPRT 2022-FL9 Issuer, LLC is governed by a Collateral Interest Purchase Agreement, dated as of June 29, 2022, by and among FBRT Sub REIT, BSPRT 2022-FL9 Issuer, LLC, the OP, and BSPRT 2022-FL9 Seller, LLC. The Company, through its wholly-owned subsidiaries, holds the preferred equity tranches of the above CLOs of approximately $401.8 million and $329.2 million as of September 30, 2022 and December 31, 2021, respectively. The following table represents the terms of the notes issued by 2019-FL5 Issuer 2021-FL6 Issuer, 2021-FL7 Issuer, 2022-FL8 Issuer and 2022-FL9 Issuer (the "CLOs"), respectively, as of September 30, 2022 (dollars in thousands): CLO Facility Tranche Par Value Issued Par Value Outstanding (1) Interest Rate Maturity Date 2019-FL5 Issuer Tranche A $ 407,025 $ 49,645 1M LIBOR + 115 5/15/2029 2019-FL5 Issuer Tranche A-S 76,950 76,950 1M LIBOR + 148 5/15/2029 2019-FL5 Issuer Tranche B 50,000 50,000 1M LIBOR + 140 5/15/2029 2019-FL5 Issuer Tranche C 61,374 61,374 1M LIBOR + 200 5/15/2029 2019-FL5 Issuer Tranche D 48,600 5,000 1M LIBOR + 240 5/15/2029 2019-FL5 Issuer Tranche E 20,250 20,250 1M LIBOR + 285 5/15/2029 2021-FL6 Issuer Tranche A 367,500 367,500 1M LIBOR + 110 3/15/2036 2021-FL6 Issuer Tranche A-S 86,625 86,625 1M LIBOR + 130 3/15/2036 2021-FL6 Issuer Tranche B 33,250 33,250 1M LIBOR + 160 3/15/2036 2021-FL6 Issuer Tranche C 41,125 41,125 1M LIBOR + 205 3/15/2036 2021-FL6 Issuer Tranche D 44,625 44,625 1M LIBOR + 300 3/15/2036 2021-FL6 Issuer Tranche E 11,375 11,375 1M LIBOR + 350 3/15/2036 2021-FL7 Issuer Tranche A 508,500 508,500 1M LIBOR + 132 12/21/2038 2021-FL7 Issuer Tranche A-S 13,500 13,500 1M LIBOR + 165 12/21/2038 2021-FL7 Issuer Tranche B 52,875 52,875 1M LIBOR + 205 12/21/2038 2021-FL7 Issuer Tranche C 66,375 66,375 1M LIBOR + 230 12/21/2038 2021-FL7 Issuer Tranche D 67,500 67,500 1M LIBOR + 275 12/21/2038 2021-FL7 Issuer Tranche E 13,500 13,500 1M LIBOR + 340 12/21/2038 2022-FL8 Issuer Tranche A 690,000 690,000 1M LIBOR + 150 2/15/2037 2022-FL8 Issuer Tranche A-S 66,000 66,000 1M LIBOR + 185 2/15/2037 2022-FL8 Issuer Tranche B 55,500 55,500 1M LIBOR + 205 2/15/2037 2022-FL8 Issuer Tranche C 67,500 67,500 1M LIBOR + 230 2/15/2037 2022-FL8 Issuer Tranche D 81,000 81,000 1M LIBOR + 350 2/15/2037 2022-FL9 Issuer Tranche A 423,667 423,667 1M LIBOR + 255 5/15/2039 2022-FL9 Issuer Tranche A-S 96,380 96,380 1M LIBOR + 310 5/15/2039 2022-FL9 Issuer Tranche B 42,166 42,166 1M LIBOR + 360 5/15/2039 2022-FL9 Issuer Tranche C 48,189 48,189 1M LIBOR + 415 5/15/2039 2022-FL9 Issuer Tranche D 49,194 49,194 1M LIBOR + 505 5/15/2039 2022-FL9 Issuer Tranche E 11,041 11,041 1M LIBOR + 565 5/15/2039 $ 3,601,586 $ 3,200,606 ________________________________________________________ (1) Excludes $453.4 million of CLO notes, held by the Company, which are eliminated within the collateralized loan obligations line in the consolidated balance sheet as of September 30, 2022. The following table represents the terms of the notes issued by 2018-FL4 Issuer, 2019-FL5 Issuer, 2021-FL6 Issuer and 2021-FL7 Issuer, as of December 31, 2021 (dollars in thousands): CLO Facility Tranche Par Value Issued Par Value Outstanding (1) Interest Rate Maturity Date 2018-FL4 Issuer Tranche A $ 416,827 $ 75,263 1M LIBOR + 105 9/15/2035 2018-FL4 Issuer Tranche A-S 73,813 73,813 1M LIBOR + 130 9/15/2035 2018-FL4 Issuer Tranche B 56,446 56,446 1M LIBOR + 160 9/15/2035 2018-FL4 Issuer Tranche C 68,385 68,385 1M LIBOR + 210 9/15/2035 2018-FL4 Issuer Tranche D 57,531 57,531 1M LIBOR + 275 9/15/2035 2018-FL4 Issuer Tranche E 28,223 28,223 1M LIBOR + 305 9/15/2035 2019-FL5 Issuer Tranche A 407,025 299,529 1M LIBOR + 115 5/15/2029 2019-FL5 Issuer Tranche A-S 76,950 76,950 1M LIBOR + 148 5/15/2029 2019-FL5 Issuer Tranche B 50,000 50,000 1M LIBOR + 140 5/15/2029 2019-FL5 Issuer Tranche C 61,374 61,374 1M LIBOR + 200 5/15/2029 2019-FL5 Issuer Tranche D 48,600 5,000 1M LIBOR + 240 5/15/2029 2019-FL5 Issuer Tranche E 20,250 20,250 1M LIBOR + 285 5/15/2029 2021-FL6 Issuer Tranche A 367,500 367,500 1M LIBOR + 110 3/15/2036 2021-FL6 Issuer Tranche A-S 86,625 86,625 1M LIBOR + 130 3/15/2036 2021-FL6 Issuer Tranche B 33,250 33,250 1M LIBOR + 160 3/15/2036 2021-FL6 Issuer Tranche C 41,125 41,125 1M LIBOR + 205 3/15/2036 2021-FL6 Issuer Tranche D 44,625 44,625 1M LIBOR + 300 3/15/2036 2021-FL6 Issuer Tranche E 11,375 11,375 1M LIBOR + 350 3/15/2036 2021-FL7 Issuer Tranche A 508,500 508,500 1M LIBOR + 132 12/21/2038 2021-FL7 Issuer Tranche A-S 13,500 13,500 1M LIBOR + 165 12/21/2038 2021-FL7 Issuer Tranche B 52,875 52,875 1M LIBOR + 205 12/21/2038 2021-FL7 Issuer Tranche C 66,375 66,375 1M LIBOR + 230 12/21/2038 2021-FL7 Issuer Tranche D 67,500 67,500 1M LIBOR + 275 12/21/2038 2021-FL7 Issuer Tranche E 13,500 13,500 1M LIBOR + 340 12/21/2038 $ 2,672,174 $ 2,179,514 ________________________________________________________ (1) Excludes $320.6 million of CLO notes, held by the Company, which are eliminated within the collateralized loan obligations line in the consolidated balance sheet as of December 31, 2021. The below table reflects the total assets and liabilities of the Company's outstanding CLOs. The CLOs are considered VIEs and are consolidated into the Company's consolidated financial statements as of September 30, 2022 and December 31, 2021 as the Company is the primary beneficiary of the VIE. The Company is the primary beneficiary of the CLOs because (i) the Company has the power to direct the activities that most significantly affect the VIE’s economic performance and (ii) the right to receive benefits from the VIEs or the obligation to absorb losses of the VIEs that could be significant to the VIE. The VIE's are non-recourse to the Company. Assets (dollars in thousands) September 30, 2022 December 31, 2021 Cash (1) $ 87,747 $ 187,668 Commercial mortgage loans, held for investment, net (2) 3,954,397 2,629,431 Accrued interest receivable 11,253 5,918 Total Assets $ 4,053,397 $ 2,823,017 Liabilities (dollars in thousands) Notes payable (3)(4) $ 3,634,459 $ 2,482,762 Accrued interest payable 8,357 1,598 Total Liabilities $ 3,642,816 $ 2,484,360 ________________________________________________________ (1) Includes $86.9 million and $187.0 million of cash held by the servicer related to CLO loans as of September 30, 2022 and December 31, 2021, respectively. (2) The balance is presented net of allowance for credit losses of $7.4 million and $8.7 million as of September 30, 2022 and December 31, 2021, respectively. (3) Includes $453.4 million and $320.6 million of CLO notes, held by the Company, which are eliminated within the collateralized loan obligations line of the consolidated balance sheets as of September 30, 2022 and December 31, 2021, respectively. (4) The balance is presented net of deferred financing cost and discount of $19.5 million and $17.3 million as of September 30, 2022 and December 31, 2021, respectively. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The Company uses the two-class method in calculating basic and diluted earnings per share. Net income/(loss) is allocated between our common stock and other participating securities based on their participation rights. Diluted net income per share has been computed using the weighted average number of shares of common stock outstanding and other dilutive securities. The following table presents a reconciliation of the numerators and denominators of the basic and diluted earnings per share computations and the calculation of basic and diluted earnings per share for the three and nine months ended September 30, 2022 and September 30, 2021 (in thousands, except share and per share data): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Numerator Net income/(loss) $ 35,258 $ 38,495 $ (12,958) $ 98,651 Less: Preferred stock dividends 6,899 4,804 34,865 12,040 Less: Undistributed earnings allocated to preferred stock — 4,201 — 10,706 Net income/(loss) attributable to common stockholders (basic and diluted earnings per share) $ 28,359 $ 29,490 $ (47,823) $ 75,905 Denominator Weighted-average common shares outstanding for basic earnings per share 83,665,250 44,185,241 67,965,397 44,245,733 Effect of dilutive shares (1) : Unvested restricted shares — 15,323 — 15,737 Weighted-average common shares outstanding for diluted earnings per share 83,665,250 44,200,564 67,965,397 44,261,470 Basic earnings per share $ 0.34 $ 0.67 $ (0.70) $ 1.72 Diluted earnings per share $ 0.34 $ 0.67 $ (0.70) $ 1.71 _______________________ (1) The effect of dilutive shares excluded an aggregate of 516,830 and 465,237 weighted average restricted stock units for the three and nine months ended September 30, 2022, respectively, as their effect was anti-dilutive. Additionally, the effect of dilutive shares excluded an aggregate of 5,789,378 and 21,508,045 weighted average common equivalent of convertible preferred shares for the three and nine months ended September 30, 2022, respectively, as the effect was anti-dilutive. |
Equity Transactions
Equity Transactions | 9 Months Ended |
Sep. 30, 2022 | |
Equity [Abstract] | |
Equity Transactions | Note 9 - Equity Transactions The following table presents the summary of the Company's outstanding shares of Common Stock and Preferred Stock as of September 30, 2022 and December 31, 2021 (dollars in thousands, except share amounts): Balance as of Shares Outstanding as of Third Quarter Dividend/Distribution Per Share (6) September 30, 2022 December 31, 2021 September 30, 2022 December 31, 2021 Common Stock - at par value (1)(2) $ 830 $ 441 83,362,351 43,965,928 $ 0.355 Redeemable Convertible Preferred Stock Series C Preferred Stock (3) $ 6,976 $ 6,971 1,400 1,400 $ 106.22 Series D Preferred Stock (4) $ — $ 89,684 — 17,950 n/a Series H Preferred Stock (4) $ 89,748 $ — 17,950 — $ 106.22 Perpetual Preferred Stock Series E Preferred Stock $ 258,742 $ 258,742 10,329,039 10,329,039 $ 0.46875 Automatically Convertible Preferred Stock Series F Preferred Stock (5) $ — $ 710,431 — 39,733,299 n/a _________________________________________________________ (1) Common Stock shares include shares issued pursuant to the Company's distribution reinvestment plan (the "DRIP") and unvested restricted shares. (2) During the nine months ended September 30, 2022, the Company repurchased 931,053 shares of Common Stock at an average price of $11.85 per share, for a total of $11.0 million. All of these shares were retired upon settlement, reducing the total outstanding shares as of September 30, 2022. See discussion in the "Stock Repurchases" section below. (3) On October 19, 2022, 400 shares of the Company's Series C Preferred Stock each automatically converted into 299.2 shares of Common Stock, pursuant to the terms of the Series C Preferred Stock, resulting in the issuance of 119,538 shares of Common Stock. The remaining 1,000 outstanding shares of Series C Preferred Stock were exchanged by the holder for an equal number of the Company's newly created Series I Preferred Stock. (4) 17,950 shares of Series D Preferred Stock were issued in March 2021, all of which were exchanged for an equal number of shares of Series H Preferred Stock in June 2022. (5) On April 19, 2022, all of the 39,733,299 outstanding shares of the Company’s Series F Preferred Stock automatically converted on a one-for-one basis into an equal amount of shares of Common Stock, pursuant to the terms of the Articles Supplementary of the Series F Preferred Stock. (6) As declared by the Company's board of directors. Distributions In order to maintain its election to qualify as a REIT, the Company must currently distribute, at a minimum, an amount equal to 90% of its taxable income, without regard to the deduction for distributions paid and excluding net capital gains. The Company must distribute 100% of its taxable income (including net capital gains) to avoid paying corporate U.S. federal income taxes. Distribution payments are dependent on the availability of funds. The Company's board of directors may reduce the amount of distributions paid or suspend distribution payments at any time, and therefore, distributions payments are not assured. Distribution payments are dependent on the availability of funds. The board of directors may reduce the amount of distributions paid or suspend distribution payments at any time, and therefore, distribution payments are not assured. Dividends on the Company’s outstanding shares of preferred stock, to the extent not declared by the board of directors quarterly, will accrue, and dividends may not be paid on the Company's common stock to the extent there are accrued and unpaid dividends on the preferred stock. The amount of dividends paid on the Company’s Series C Preferred Stock and Series H Preferred Stock are generally in an amount equal to the dividends a holder of such preferred stock would have received if the preferred stock had been converted into common stock in accordance with its terms, except when the amount of common stock dividends are below the threshold stated in the terms of such preferred stock. The Company distributed $58.1 million of common stock dividends during the nine months ended September 30, 2022, comprised of $57.0 million in cash and $1.1 million in shares of common stock issued under the DRIP. The Company distributed $36.5 million of common stock dividends during the nine months ended September 30, 2021, comprised of $31.4 million in cash and $5.1 million in shares of common stock issued under the DRIP. As of September 30, 2022 and December 31, 2021, the Company had declared but unpaid common stock distributions of $29.6 million and $12.5 million, respectively, declared but unpaid Series C Preferred Stock distributions of $0.2 million and $0.1 million, respectively, and $4.8 million of declared but unpaid Series E Preferred Stock distributions. Additionally, as of September 30, 2022 the Company had declared but unpaid Series H Preferred stock distributions of $1.9 million. As of December 31, 2021, the Company had $1.5 million of declared but unpaid Series D Preferred Stock distributions and $11.3 million of declared but unpaid Series F Preferred Stock distributions. These amounts are included in Distributions payable on the Company’s consolidated balance sheets. Preferred Stock The following tables present the activity in the Company's Series C Preferred Stock for the nine-month periods ended September 30, 2022 and 2021 (dollars in thousands, except share amounts): For the Nine Months Ended September 30, 2022 September 30, 2021 Shares Amount Shares Amount Balance at Beginning of Period 1,400 $ 6,971 1,400 $ 6,962 Amortization of offering costs — 5 — 7 Balance at End of Period 1,400 $ 6,976 1,400 $ 6,969 The following table presents the activity in the Company's Series D Preferred Stock for the nine-month periods ended September 30, 2022 and 2021 (dollars in thousands, except share amounts): For the Nine Months Ended September 30, 2022 September 30, 2021 Shares Amount Shares Amount Balance at Beginning of Period 17,950 $ 89,684 — $ — Issuance of Preferred Stock — — 17,950 89,748 Exchanged for Series H Preferred Stock (17,950) (89,748) — — Offering costs — — — (83) Amortization of offering costs — 64 — 12 Balance at End of Period — $ — 17,950 $ 89,677 The following table presents the activity in the Company's Series E Preferred Stock for the nine-month period ended September 30, 2022 (dollars in thousands, except share amounts): For the Nine Months Ended September 30, 2022 September 30, 2021 Shares Amount Shares Amount Balance at Beginning of Period 10,329,039 $ 258,742 — $ — Balance at End of Period 10,329,039 $ 258,742 — $ — The following table presents the activity in the Company's Series F Preferred Stock for the nine-month period ended September 30, 2022 (dollars in thousands, except share amounts): For the Nine Months Ended September 30, 2022 September 30, 2021 Shares Amount Shares Amount Balance at Beginning of Period 39,733,299 $ 710,431 — $ — Automatically converted into Common Stock (39,733,299) (710,431) — — Balance at End of Period — $ — — $ — The following table presents the activity in the Company's Series H Preferred Stock for the nine-month period ended September 30, 2022 (dollars in thousands, except share amounts): For the Nine Months Ended September 30, 2022 September 30, 2021 Shares Amount Shares Amount Balance at Beginning of Period — $ — — $ — Issuance of Series H Preferred Stock in exchange for Series D Preferred Stock 17,950 89,748 — — Balance at End of Period 17,950 $ 89,748 — $ — Stock Repurchases The Company’s board of directors has authorized a $65 million share repurchase program of the Company’s common stock. The Company’s share repurchase program authorizes share repurchases at prices below the most recently reported book value per share as determined in accordance with GAAP. Purchases made under the program may be made through open market, block, and privately negotiated transactions, including Rule 10b5-1 plans, as permitted by securities laws and other legal requirements. The timing, manner, price and amount of any purchases by the Company will be determined by the Company in its reasonable business judgment and consistent with the exercise of its legal duties and will be subject to economic and market conditions, stock price, applicable legal requirements and other factors. The share repurchase program does not obligate the Company to acquire any particular amount of common stock. The Company share repurchase program will remain open until at least December 31, 2023 or until the capital committed to the applicable repurchase program has been exhausted, whichever is sooner. Repurchases under the Company’s share repurchase program may be suspended from time to time at the Company’s discretion without prior notice. The following table is a summary of the Company’s repurchase activity of its common stock during the three and nine months ended September 30, 2022: For the Three and Nine Months Ended September 30, 2022 Shares Amount (2) Authorized repurchase amount (1) — $ 65,000 Repurchases paid 774,653 (9,359) Repurchases unsettled (3) 156,400 (1,677) Remaining as of September 30, 2022 $ 53,964 _________________________________________________________ (1) Amount includes commissions paid associated with share repurchases . (2) For the period ended September 30, 2022, the average purchase price was $11.85 per share. (3) Represents repurchases for which an order had been placed before the end of the quarter but had not yet settled by September 30, 2022. As of September 30, 2022, the Company had $54.0 million remaining under the share repurchase program. Accumulated Other Comprehensive Income/(Loss) The following tables set forth the changes in accumulated other comprehensive income/(loss) by component. (dollars in thousands) Total Available for Sale Securities Cash Flow Hedges For the Three Months Ended September 30, 2022: Balance as of June 30, 2022 $ — $ — $ — Other comprehensive (loss) income (373) (373) — Balance as of September 30, 2022 $ (373) $ (373) $ — For the Three Months Ended September 30, 2021: Balance as of June 30, 2021 $ — $ — $ — Other comprehensive (loss) income — — — Balance as of September 30, 2021 $ — $ — $ — For the Nine Months Ended September 30, 2022: Balance as of December 31, 2021 $ (62) $ — $ (62) Other comprehensive (loss) income (593) (373) (220) Reclassification adjustment for amounts included in net income/(loss) 282 — 282 Balance as of September 30, 2022 $ (373) $ (373) $ — For the Nine Months Ended September 30, 2021: Balance as of December 31, 2020 $ (8,256) $ (8,256) $ — Other comprehensive (loss) income 8,256 8,256 — Balance as of September 30, 2021 $ — $ — $ — |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Unfunded Commitments Under Commercial Mortgage Loans As of September 30, 2022 and December 31, 2021, the Company had the below unfunded commitments to the Company's borrowers (dollars in thousands): Funding Expiration September 30, 2022 December 31, 2021 2022 $ 8,000 $ 25,864 2023 90,093 123,860 2024 359,735 271,056 2025 and beyond 74,755 37,325 $ 532,583 $ 458,105 The borrowers are generally required to meet or maintain certain metrics in order to qualify for the unfunded commitment amounts. Litigation and Regulatory Matters The Company is not presently involved in any material litigation arising outside the ordinary course of business. However, the Company is involved in routine litigation arising in the ordinary course of business, none of which the Company believes, individually or in the aggregate, will have a material impact on the Company’s financial condition, operating results or cash flows. |
Related Party Transactions and
Related Party Transactions and Arrangements | 9 Months Ended |
Sep. 30, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions and Arrangements | Related Party Transactions and Arrangements Advisory Agreement Fees and Reimbursements Pursuant to the Advisory Agreement, the Company is required to make the following payments and reimbursements to the Advisor: • The Company reimburses the Advisor’s costs of providing services pursuant to the Advisory Agreement, except the salaries and benefits paid by the Advisor to the Company’s executive officers. • The Company pays the Advisor, or its affiliates, a monthly asset management fee equal to one-twelfth of 1.5% of stockholders' equity as calculated pursuant to the Advisory Agreement. • The Company will pay the Advisor an annual subordinated performance fee calculated on the basis of total return to stockholders, payable monthly in arrears, such that for any year in which total return on stockholders’ capital (as defined in the Advisory Agreement) exceeds 6.0% per annum, our Advisor will be entitled to 15.0% of the excess total return; provided that in no event will the annual subordinated performance fee payable to our Advisor exceed 10.0% of the aggregate total return for such year. • The Company reimburses the Advisor for insourced expenses incurred by the Advisor on the Company‘s behalf related to selecting, evaluating, originating and acquiring investments in an amount up to 0.5% of the principal amount funded by the Company to originate or acquire commercial mortgage loans and up to 0.5% of the anticipated net equity funded by the Company to acquire real estate securities investments. The table below shows the costs incurred due to arrangements with our Advisor and its affiliates during the three and nine months ended September 30, 2022 and 2021 and the associated payable as of September 30, 2022 and December 31, 2021 (dollars in thousands): Three Months Ended September 30, Nine Months Ended September 30, Payable as of 2022 2021 2022 2021 September 30, 2022 December 31, 2021 Acquisition expenses (1) $ 362 $ 690 $ 996 $ 1,012 $ 373 $ — Administrative services expenses 3,001 2,980 9,402 9,532 3,001 — Asset management and subordinated performance fee 6,430 8,265 19,776 19,682 11,353 15,595 Other related party expenses (2)(3) 226 146 706 182 1,717 1,943 Total related party fees and reimbursements $ 10,019 $ 12,081 $ 30,880 $ 30,408 $ 16,444 $ 17,538 _________________________________________________________ (1) Total acquisition expenses paid during the three months ended September 30, 2022 and 2021 were $2.5 million and $2.9 million, respectively, of which $2.1 million and $2.2 million were capitalized within the commercial mortgage loans, held for investment and real estate securities, available for sale, measured at fair value lines of the consolidated balance sheets. Total acquisition expenses paid during the nine months ended September 30, 2022 and 2021 were $9.7 million and $7.5 million, respectively, of which $8.7 million and $6.5 million were capitalized within the commercial mortgage loans, held for investment and real estate securities, available for sale, measured at fair value lines of the consolidated balance sheets. (2) These are related to reimbursable costs incurred related to the increase in loan origination activities and are included in Other expenses in the Company's consolidated statements of operations. (3) As of September 30, 2022 and December 31, 2021, the related party payables include $1.7 million and $1.9 million of payments made by the Advisor to third party vendors on behalf of the Company. The payables as of September 30, 2022 and December 31, 2021, in the table above are included in Due to affiliates on the Company's consolidated balance sheets. Other Transactions Pursuant to a lending and security agreement with SBL, which was entered into in February 2020 and amended in March and August 2020, the Company may borrow up to $100.0 million at a rate of one-month LIBOR + 4.5%. The facility has a maturity of February 10, 2023 and is secured by a pledge of equity interests in certain of the Company’s subsidiaries. The Company incurred $0.2 million and $0.7 million in interest expense on the lending agreement with SBL for the three and nine months ended September 30, 2022, respectively. As of September 30, 2022 there were no amounts outstanding under the lending agreement. As of December 31, 2021 the outstanding balance was $50.0 million. As of the beginning of 2022, SBL held 17,950 shares of the Company's outstanding shares of Series D Preferred Stock. On June 24, 2022, all 17,950 outstanding shares of Series D Preferred Stock were exchanged for an equal amount of shares of Series H Preferred Stock for no consideration (see Note 2 - Summary of Significant Accounting Policies). In August 2021 the Company and an affiliate of the Company entered into a joint venture agreement and formed a joint venture entity, Jeffersonville Member, LLC (the "Jeffersonville JV") to acquire a $139.5 million triple net lease property in Jeffersonville, GA. The Company has a 79% interest in the Jeffersonville JV, while the affiliate has a 21% interest. The Company invested a total of $109.8 million, made up of $88.7 million in debt and $21.1 million in equity, representing 79% of the ownership interest in the Jeffersonville JV. The affiliate made up the remaining $29.8 million composed of a $24.0 million mortgage note payable and $5.7 million in equity. The Company has control of Jeffersonville JV with 79% ownership and, therefore, consolidates Jeffersonville JV on its consolidated balance sheets. The Company's $88.7 million mortgage note payable to Jeffersonville JV is eliminated in consolidation (see Note 7 - Debt). As discussed below, in the first quarter of 2022, pursuant to the 2021 Incentive Plan, the Company issued awards of restricted stock units to its officers and certain other personnel of the Advisor who provide services to the Company under the Advisory Agreement (see Note 12 - Share-based Compensation). As of September 30, 2022, our commercial mortgage loans, held for investment, includes an aggregate of $122.5 million carrying value of loans to affiliates of our Advisor. The Company recognized $1.6 million and $3.4 million of interest income from these loans for the three and nine months ended September 30, 2022, respectively, in the Company’s consolidated statements of operations. |
Share-based Compensation
Share-based Compensation | 9 Months Ended |
Sep. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Share-based Compensation | Share-based Compensation Share Plans The Company's equity incentive plans provide the Company with the ability to grant equity-based awards to its directors, officers and employees (if the Company ever has employees), employees of the Advisor and its affiliates, or certain of the Company's consultants, employees of entities that provide services to the Company, directors of the Advisor or of entities that provide services to the Company, the Advisor and its affiliates. Under the Company's RSP, the total number of common shares granted shall not exceed 5% of the Company’s authorized common shares, and in any event, will not exceed 4.0 million shares (as such number may be adjusted for stock splits, stock distributions, combinations and similar events). The RSP will expire on February 7, 2023. Under the Company's 2021 Incentive Plan, as of September 30, 2022, there were 5,007,893 shares of common stock remaining available for issuance. The Board may amend, suspend or terminate the 2021 Incentive Plan at any time; provided that no amendment, suspension or termination may impair rights or obligations under any outstanding award without the participant’s consent or violate the 2021 Incentive Plan’s prohibition on repricing. Service-based Restricted Stock and Restricted Stock Units During the nine months ended September 30, 2022 , in accordance with the Company's RSP, the Company issued awards of restricted stock to its non-employee directors, and in accordance with the 2021 Incentive Plan, the Company issued awards of RSUs to its officers and certain other personnel of the Advisor who provide services to the Company under the Advisory Agreement. Restricted Stock and RSU activity issued under the RSP and 2021 Incentive Plan for the nine months ended September 30, 2022 is summarized below: Shares Outstanding RSP 2021 Incentive Plan Weighted Average Grant Date Fair Value Unvested equity awards outstanding as of December 31, 2021 11,184 — $ 17.88 Grants 28,245 492,107 14.05 Forfeitures — — — Vested (18,393) — 16.14 Unvested equity awards outstanding as of September 30, 2022 21,036 492,107 $ 14.06 During the three and nine months ended September 30, 2022, the Company recognized compensation expense associated with the equity awards of $0.7 and $1.9 million, respectively, which is included in Other expenses on the consolidated statements of operations. Unrecognized estimated compensation expense for these awards totaled $6.4 million as of September 30, 2022, to be expensed over a weighted average period of 1.6 years. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments GAAP establishes a hierarchy of valuation techniques based on the observability of inputs used in measuring financial instruments at fair values. GAAP establishes market-based or observable inputs as the preferred source of values, followed by valuation models using management assumptions in the absence of market inputs. The three levels of the hierarchy are described below: • Level I - Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date. • Level II - Inputs (other than quoted prices included in Level I) are either directly or indirectly observable for the asset or liability through correlation with market data at the measurement date and for the duration of the instrument’s anticipated life. • Level III - Unobservable inputs that reflect the entity's own assumptions about the assumptions that market participants would use in the pricing of the asset or liability and are consequently not based on market activity, but rather through particular valuation techniques. The determination of where an asset or liability falls in the above hierarchy requires significant judgment and factors specific to the asset or liability. In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. The Company evaluates its hierarchy disclosures each quarter and depending on various factors, it is possible that an asset or liability may be classified differently from quarter to quarter. The Company has implemented valuation control processes to validate the fair value of the Company's financial instruments measured at fair value including those derived from pricing models. These control processes are designed to assure that the values used for financial reporting are based on observable inputs wherever possible. In the event that observable inputs are not available, the control processes are designed to assure that the valuation approach utilized is appropriate and consistently applied and the assumptions are reasonable. Financial Instruments Measured at Fair Value on a Recurring Basis CRE CLO bonds, recorded in real estate securities, available for sale, measured at fair value on the consolidated balance sheets are valued utilizing both observable and unobservable market inputs. These factors include projected future cash flows, ratings, subordination levels, vintage, remaining lives, credit issues, and recent trades of similar real estate securities. Depending upon the significance of the fair value inputs used in determining these fair values, these real estate securities are classified in either Level II or Level III of the fair value hierarchy. The Company utilizes a third party pricing service to obtain a current estimated liquid price of the securities, resulting in a Level II classification. Real estate securities classified as trading, RMBS, are measured at fair value by utilizing a third party pricing service to obtain a current estimated liquid price of the securities. The RMBS are classified in Level II of the fair value hierarchy. Commercial mortgage loans, held for sale, measured at fair value in the Company's TRS are initially recorded at transaction proceeds, which are considered to be the best initial estimate of fair value. The Company engaged the services of a third party independent valuation firm to determine fair value of certain investments held by the Company. Fair value is determined using a discounted cash flow model that primarily considers changes in interest rates and credit spreads, weighted average life and current performance of the underlying collateral. Commercial mortgage loans, held for sale, measured at fair value that are originated in the last month of the reporting period are held and marked to the transaction proceeds. The Company classified the commercial mortgage loans, held for sale, measured at fair value as Level III. Other real estate investments, measured at fair value on the consolidated balance sheets are valued using unobservable inputs. The Company engaged the services of a third party independent valuation firm to determine fair value of certain investments, including preferred equity investments, held by the Company. Fair value is determined using a discounted cash flow model that primarily considers changes in interest rates and credit spreads, weighted average life and current performance of the underlying collateral. The Company classified the other real estate investments, measured at fair value as Level III. The fair value for Treasury note futures is derived using market prices. Treasury note futures trade on the Chicago Mercantile Exchange (“CME”). The instruments are a variety of recently issued 10-year U.S. Treasury notes. The future contracts are liquid and are centrally cleared through the CME. Treasury note futures are generally categorized in Level II of the fair value hierarchy. The fair value for credit default swaps and interest rate swaps contracts are derived using pricing models that are widely accepted by marketplace participants. Credit default swaps and interest rate swaps are traded in the OTC market. The pricing models take into account multiple inputs including specific contract terms, interest rate yield curves, interest rates, credit curves, recovery rates, and/or current credit spreads obtained from swap counterparties and other market participants. Most inputs into the models are not subjective as they are observable in the marketplace or set per the contract. Valuation is primarily determined by the difference between the contract spread and the current market spread. The contract spread (or rate) is generally fixed and the market spread is determined by the credit risk of the underlying debt or reference entity. If the underlying indices are liquid and the OTC market for the current spread is active, credit default swaps and interest rate swaps are categorized in Level II of the fair value hierarchy. If the underlying indices are illiquid and the OTC market for the current spread is not active, credit default swaps are categorized in Level III of the fair value hierarchy. The credit default swaps and interest rate swaps are generally categorized in Level II of the fair value hierarchy. The fair value of exchange-traded swap agreements hedging RMBS repurchase agreements are calculated using the net discounted future fixed cash payments and the discounted future variable cash receipts which are based on expected future interest rates derived from observable market interest rate curves. The Company also incorporates both its own nonperformance risk and its counterparties’ nonperformance risk in determining fair value. In considering the effect of nonperformance risk, the Company considered the impact of netting and credit enhancements, such as collateral postings and guarantees, and has concluded that counterparty risk is not significant to the overall valuation. Interest rate swap agreements hedging the Company's RMBS repurchase agreements are measured at fair value on a recurring basis primarily using Level II inputs. The fair value of these derivatives are calculated including accrued interest and net of variation margin amounts received or paid through the exchange, resulting in separately presenting on the balance sheet a significantly reduced fair value amount representing the unsettled fair value of these derivatives. A review of the fair value hierarchy classification is conducted on a quarterly basis. Changes in the type of inputs may result in a reclassification for certain assets or liabilities. The Company's policy with respect to transfers between levels of the fair value hierarchy is to recognize transfers into and out of each level as of the beginning of the reporting period. There were no material transfers between levels within the fair value hierarchy for the periods ended September 30, 2022 and December 31, 2021. The following table presents the Company's financial instruments carried at fair value on a recurring basis in the consolidated balance sheets by its level in the fair value hierarchy as of September 30, 2022 and December 31, 2021 (dollars in thousands): Total Level I Level II Level III September 30, 2022 Assets, at fair value Real estate securities, available for sale, measured at fair value $ 74,625 $ — $ 74,625 $ — Real estate securities, trading, measured at fair value 252,491 — $ 252,491 $ — Commercial mortgage loans, held for sale, measured at fair value 41,342 — — 41,342 Derivatives instruments, measured at fair value: Credit default swaps — — — — Interest rate swaps 3,546 — 3,546 — Total assets, at fair value $ 372,004 $ — $ 330,662 $ 41,342 Liabilities, at fair value Derivatives instruments, measured at fair value: Interest rate swaps $ 8 $ — $ 8 $ — Credit default swaps $ 4 $ — $ 4 $ — Total liabilities, at fair value $ 12 $ — $ 12 $ — December 31, 2021 Assets, at fair value Real estate securities, trading, measured at fair value $ 4,566,871 $ — $ 4,566,871 $ — Commercial mortgage loans, held for sale, measured at fair value 34,718 — — 34,718 Other real estate investments, measured at fair value 2,074 — — 2,074 Derivatives instruments, measured at fair value: Interest rate swaps 312 — 312 — Treasury note futures 124 — 124 — Total assets, at fair value $ 4,604,099 $ — $ 4,567,307 $ 36,792 Liabilities, at fair value Derivatives instruments, measured at fair value: Credit default swaps $ 1,142 $ — $ 1,142 $ — Unsecured debt-related interest rate swap agreements 31,153 — 31,153 — Total liabilities, at fair value $ 32,295 $ — $ 32,295 $ — The following table contains the Level 3 inputs used to value assets and liabilities on a recurring and nonrecurring basis or where the Company discloses fair value as of September 30, 2022: Asset Category Fair Value Valuation Methodologies Unobservable Inputs (1) Weighted Average (2) Range September 30, 2022 Commercial mortgage loans, held for sale, measured at fair value $ 41,342 Discounted Cash Flow Yield 3.4% 3.1% - 7.3% December 31, 2021 Commercial mortgage loans, held for sale, measured at fair value $ 34,718 Discounted Cash Flow Yield 3.4% 3.2% - 4.2% Other real estate investments, measured at fair value 2,074 Discounted Cash Flow Yield 10.9% 9.9% - 11.9% ________________________________________________________ (1) In determining certain inputs, the Company evaluates a variety of factors including economic conditions, industry and market developments, market valuations of comparable companies and company specific developments including exit strategies and realization opportunities. The Company has determined that market participants would take these inputs into account when valuing the investments. (2) Inputs were weighted based on the fair value of the investments included in the range. Increases or decreases in any of the above unobservable inputs in isolation would result in a lower or higher fair value measurement for such assets. The following table presents additional information about the Company’s financial instruments which are measured at fair value on a recurring basis as of September 30, 2022 and December 31, 2021 for which the Company has used Level III inputs to determine fair value (dollars in thousands): September 30, 2022 Commercial Mortgage Loans, held for sale, measured at fair value Other Real Estate Investments, measured at fair value Beginning balance, January 1, 2022 $ 34,718 $ 2,074 Transfers into Level III (1) — — Total realized and unrealized gain/(loss) included in earnings: Realized gain/(loss) on sale of commercial mortgage loans, held for sale, and other real estate investments 4,838 (33) Unrealized gain/(loss) on commercial mortgage loans, held for sale and other real estate investments (3,678) 4 Net accretion — — Purchases 343,096 — Sales / paydowns (337,632) (2,045) Transfers out of Level III (1) — — Ending Balance, September 30, 2022 $ 41,342 $ — December 31, 2021 Commercial Mortgage Loans, held for sale, measured at fair value Other Real Estate Investments, measured at fair value Beginning balance, January 1, 2021 $ 67,649 $ 2,522 Transfers into Level III (1) — — Total realized and unrealized gain/(loss) included in earnings: Realized gain/(loss) on sale of commercial mortgage loans, held for sale 24,208 — Unrealized gain/(loss) on commercial mortgage loans, held for sale and other real estate investments 469 (19) Net accretion — (3) Purchases 420,673 — Sales / paydowns (478,281) (426) Transfers out of Level III (1) — — Ending Balance, December 31, 2021 $ 34,718 $ 2,074 ________________________________________________________ (1) Transfers in and transfers out include transfers between Commercial mortgage loans, held for sale and Commercial mortgage loans, held for investment. The fair value of cash and cash equivalents and restricted cash are measured using observable quoted market prices, or Level I inputs and their carrying value approximates their fair value. The fair value of borrowings under repurchase agreements approximate their carrying value on the consolidated balance sheets due to their short-term nature, and are measured using Level II inputs. Financial Instruments Not Measured at Fair Value The fair values of the Company's commercial mortgage loans, held for investment and collateralized loan obligations, which are not reported at fair value on the consolidated balance sheets are reported below as of September 30, 2022 and December 31, 2021 (dollars in thousands): September 30, 2022 December 31, 2021 Level Carrying Amount (1) Fair Value Carrying Amount (1) Fair Value Commercial mortgage loans, held for investment Asset III $ 5,328,273 $ 5,331,258 $ 4,226,888 $ 4,249,118 Collateralized loan obligations Liability III 3,174,530 3,097,531 2,162,190 2,181,571 Mortgage note payable Liability III 23,998 23,998 23,998 23,998 Other financing and loan participation - commercial mortgage loans Liability III 53,167 53,167 37,903 37,903 Unsecured debt Liability III 98,670 73,700 148,594 125,400 ________________________________________________________ (1) The carrying value is gross of $46.8 million and $15.8 million of allowance for credit losses as of September 30, 2022 and December 31, 2021, respectively. The fair value of the commercial mortgage loans, held for investment is estimated using a discounted cash flow analysis, based on the Advisor's experience with similar types of investments. The Company estimates the fair value of the collateralized loan obligations using external broker quotes. The fair value of the other financing and loan participation-commercial mortgage loans is generally estimated using a discounted cash flow analysis. As of September 30, 2022, the Mortgage note payable was recorded at transaction proceeds, which are considered to be the best initial estimate of fair value. The fair value of the unsecured debt is based on discounted cash flows using Company estimates for market yields on similarly structured debt instruments. |
Derivative Instruments
Derivative Instruments | 9 Months Ended |
Sep. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative Instruments The Company uses derivative instruments primarily to manage the fair value variability of fixed rate assets caused by interest rate fluctuations and overall portfolio market risk. As of September 30, 2022, the net premiums received on derivative instrument assets were $0.5 million. The following derivative instruments were outstanding as of September 30, 2022 and December 31, 2021 (dollars in thousands): September 30, 2022 December 31, 2021 Fair Value Fair Value Contract type Notional Assets Liabilities Notional Assets Liabilities Credit default swaps $ 44,750 $ 710 $ 4 $ 47,000 $ — $ 1,142 Interest rate swaps (1) 37,000 2,836 8 3,649,500 312 — Interest rate swaps on unsecured debt — — — 100,000 — 31,153 Treasury note futures — — — 360 124 — Total $ 81,750 $ 3,546 $ 12 $ 3,796,860 $ 436 $ 32,295 ________________________________________________________ (1) As of September 30, 2022, asset vs. liability notional breakout for interest rate swaps assets was $35.2 million and $1.8 million, respectively. The following table indicates the net realized and unrealized gains and losses on derivatives, by primary underlying risk exposure, as included in loss on derivative instruments in the consolidated statements of operations for the three and nine months ended September 30, 2022 and September 30, 2021: Three Months Ended September 30, 2022 Three Months Ended September 30, 2021 Contract type Unrealized (Gain)/Loss Realized (Gain)/Loss Unrealized (Gain)/Loss Realized (Gain)/Loss Credit default swaps $ 40 $ 254 $ (111) $ 32 Interest rate swaps (1,606) 1,370 (1,282) 1,692 Treasury note futures — — (35) 145 Options — — — 33 Total $ (1,566) $ 1,624 $ (1,428) $ 1,902 Nine Months Ended September 30, 2022 Nine Months Ended September 30, 2021 Contract type Unrealized (Gain)/Loss Realized (Gain)/Loss Unrealized (Gain)/Loss Realized (Gain)/Loss Credit default swaps $ (515) $ 301 $ (289) $ 675 Interest rate swaps 13,215 (56,961) 22 414 Treasury note futures 124 (939) (107) (1,479) Options — — — 33 Total $ 12,824 $ (57,599) $ (374) $ (357) The Company did not hold any unsecured-debt related swaps at quarter-end September 30, 2022. The Company's portfolio of derivatives additionally hedges the variability of the underlying benchmark interest rate of current and forecasted 30- to 90-day repurchase agreements. The Company attempts to mitigate exposure to higher interest rates primarily by entering into pay-fixed, receive-variable, interest rate swap agreements for terms between eighteen months and three years. From an economic perspective, this hedge relationship establishes a relatively stable fixed rate on related debt because the variable-rate payments received on the swap agreements offset a significant portion of the interest accruing on the debt, leaving the fixed-rate swap payments as the Company’s effective borrowing rate. Additionally, changes in fair value of these derivatives tend to offset opposing changes in fair value of the Company’s residential mortgage investments that can occur in response to changes in market interest rates. The Company did not trade any new ARM portfolio-related swaps during the three months ended September 30, 2022. During the nine months ended September 30, 2022, the Company traded swap agreements with notional amounts totaling $1.3 billion, respectively, requiring fixed-rate interest payments averaging 1.36%. During the three and nine months ended September 30, 2022, the Company terminated $100 million and $5.5 billion notional amount of derivatives related to the ARM portfolio, respectively, requiring fixed-rate interest payments averaging 3.08% and 0.62%. As of September 30, 2022, the Company did not hold any trading securities portfolio financing-related swap positions. Interest rate swap agreements are measured at fair value on a recurring basis primarily using Level Two Inputs in accordance with ASU 2010-06, Fair Value Measurements and Disclosures (Topic 820). In determining fair value estimates for swaps, The Company utilizes the standard methodology of netting the discounted future fixed cash payments and the discounted future variable cash receipts which are based on expected future interest rates derived from observable market interest rate curves. The Company also incorporates both its own nonperformance risk and its counterparties’ nonperformance risk in determining fair value. In considering the effect of nonperformance risk, the Company considered the impact of netting and credit enhancements, such as collateral postings and guarantees, and has concluded that counterparty risk is not significant to the overall valuation. The fair value of exchange-traded swap agreements hedging repurchase agreements is calculated including accrued interest and net of variation margin amounts received or paid through the exchange, resulting in separately presenting on the balance sheet a fair value amount representing the unsettled fair value of these derivatives. Non-exchange traded swap agreements held as cash flow hedges of unsecured debt are reported at fair value calculated excluding accrued interest. As of September 30, 2022, cash collateral receivable from derivative counterparties includes initial margin for all derivatives and variation margin for non-exchange traded derivatives. Accrued interest for non-exchange traded swap agreements is included in accounts payable and accrued expenses in the Company's consolidated balance sheets. |
Offsetting Assets and Liabiliti
Offsetting Assets and Liabilities | 9 Months Ended |
Sep. 30, 2022 | |
Offsetting [Abstract] | |
Offsetting Assets and Liabilities | Offsetting Assets and Liabilities The Company's consolidated balance sheets used a gross presentation of repurchase agreements and collateral pledged. The table below provides a gross presentation, the effects of offsetting and a net presentation of the Company's derivative instruments and repurchase agreements within the scope of ASC 210-20, Balance Sheet—Offsetting , as of September 30, 2022 and December 31, 2021 (dollars in thousands): Gross Amounts of Gross Amounts Offset on the Net Amount of Assets Presented on the Gross Amounts Not Offset on the Balance Sheet Assets Recognized Assets Balance Sheet Balance Sheet Financial Instruments Cash Collateral (1) Net Amount September 30, 2022 Derivative instruments, at fair value $ 3,546 $ — $ 3,546 $ — $ — $ 3,546 December 31, 2021 Derivative instruments, at fair value $ 436 $ — $ 436 $ — $ — $ 436 Gross Amounts of Gross Amounts Offset on the Net Amount of Liabilities Presented on the Gross Amounts Not Offset on the Balance Sheet Liabilities Recognized Liabilities Balance Sheet Balance Sheet Financial Instruments Cash Collateral (1) Net Amount September 30, 2022 Repurchase agreements - commercial mortgage loans $ 699,408 $ — $ 699,408 $ 707,900 $ 5,010 $ — Repurchase agreements - real estate securities 337,613 — 337,613 373,363 — — Derivative instruments, at fair value 12 — 12 — 68 — December 31, 2021 Repurchase agreements - commercial mortgage loans $ 1,019,600 $ — $ 1,019,600 $ 1,460,317 $ 5,015 $ — Repurchase agreements - real estate securities 4,178,784 — 4,178,784 4,370,239 — — Derivative instruments, at fair value 32,295 — 32,295 — 64,393 — _________________________________________________________ (1) Included in Restricted cash in the Company's consolidated balance sheets. |
Segment Reporting
Segment Reporting | 9 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting The Company conducts its business through the following reporting segments: • The real estate debt business focuses on originating, acquiring and asset managing commercial real estate debt investments, including first mortgage loans, subordinate mortgages, mezzanine loans and participations in such loans. • The real estate securities business focuses on investing in and asset managing real estate securities. Historically this business has focused primarily on CMBS, CRE CLO bonds, unsecured REIT debt, CDO notes and other securities. As a result of the October 2021 acquisition of Capstead, the Company acquired a portfolio of ARM Agency Securities. • The commercial real estate conduit business operated through the Company's TRS, which is focused on generating risk-adjusted returns by originating and subsequently selling fixed-rate commercial real estate loans into the CMBS securitization market at a profit. • The real estate owned business represents real estate acquired by the Company through foreclosure, deed in lieu of foreclosure, or purchase. The following table represents the Company's operations by segment for the three and nine months ended September 30, 2022 and September 30, 2021 (dollars in thousands): Three Months Ended September 30, 2022 Total Real Estate Debt and Other Real Estate Investments Real Estate Securities TRS Real Estate Owned Interest income $ 94,131 $ 91,097 $ 1,648 $ 1,386 $ — Revenue from real estate owned 2,312 — — — 2,312 Interest expense 46,157 43,260 1,779 786 332 Net income/(loss) 35,258 35,778 (3,309) 2,107 682 Total assets as of September 30, 2022 6,178,121 5,551,679 398,684 87,825 139,933 Three Months Ended September 30, 2021 Interest income $ 47,747 $ 47,166 $ — $ 581 $ — Revenue from real estate owned 1,015 — — — 1,015 Interest expense 11,988 11,263 148 232 345 Net income/(loss) 38,495 25,056 (148) 3,984 9,603 Total assets as of December 31, 2021 9,474,701 4,205,883 5,054,394 72,840 141,584 Nine Months Ended September 30, 2022 Total Real Estate Debt and Other Real Estate Investments Real Estate Securities TRS Real Estate Owned Interest income $ 239,602 $ 209,585 $ 25,424 $ 4,593 $ — Revenue from real estate owned 6,936 — — — 6,936 Interest expense 101,444 92,704 6,853 1,123 764 Net income/(loss) (12,958) 46,306 (63,533) 1,995 2,274 Total assets as of September 30, 2022 6,178,121 5,551,679 398,684 87,825 139,933 Nine Months Ended September 30, 2021 Interest income $ 138,969 $ 135,945 $ 461 $ 2,563 $ — Revenue from real estate owned 2,447 — — — 2,447 Interest expense 35,994 34,887 (720) 812 1,014 Net income/(loss) 98,651 74,745 (196) 13,434 10,667 Total assets as of December 31, 2021 9,474,701 4,205,883 5,054,394 72,840 141,584 For the purposes of the table above, management fees have been allocated to the business segments using an agreed upon percentage of each respective segment's prior period equity. Administrative fees have been allocated to the business segments using a percentage derived from taking the respective business segment's prior period equity as a percent of consolidated equity and multiplying it by the Company's total administrative fee. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Subsequent to the quarter ended September 30, 2022, the following events took place: Realization on Collateral - On September 6, 2018, the Company originated a $17.9 million committed first mortgage collateralized by an office property in St. Louis, MO. As of September 30, 2022, $13.0 million was outstanding and the loan was in maturity default. On October 7, 2022, the Company took ownership of the property through a voluntary conveyance from the borrower, subject to the loan from the Company. The Company intends to sell the office property and is currently evaluating the impact of this transaction on our consolidated financial statements in the fourth quarter of 2022. Foreclosure - We are engaged in ongoing litigation relating to a loan secured by 24 Walgreens properties located throughout the United States, as more fully described in Part II, Item 1 "Legal Proceedings". Subsequent to the end of the quarter, we foreclosed on and took ownership of a total of seven properties. The Company is currently evaluating the impact of this transaction on our consolidated financial statements in the fourth quarter of 2022. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of Accounting | Basis of Accounting The Company's unaudited consolidated financial statements and related footnotes have been prepared on the accrual basis of accounting in conformity with accounting principles generally accepted in the United States of America ("GAAP") for interim financial statements and pursuant to the requirements for reporting on Form 10-Q and Regulation S-X, as appropriate. Accordingly, the consolidated financial statements may not include all of the information and notes required by GAAP for annual consolidated financial statements. |
Use of Estimates | Use of Estimates GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the reported periods. Changes in the economic environment, financial markets and any other parameters used in determining these estimates could cause actual results to differ materially. In the opinion of management, the interim data includes all adjustments, of a normal and recurring nature, necessary for a fair statement of the results for the periods presented. The current period’s results of operations will not necessarily be indicative of results that ultimately may be achieved for the entire year or any subsequent interim periods. |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company, the OP and its subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. In determining whether the Company has a controlling financial interest in a joint venture and the requirement to consolidate the accounts of that entity, management considers factors such as ownership interest, authority to make decisions and contractual and substantive participating rights of the other partners or members, as well as whether the entity is a variable interest entity ("VIE") for which the Company is the primary beneficiary. The Company has determined the OP is a VIE of which the Company is the primary beneficiary. Substantially all of the Company's assets and liabilities are held by the OP. The Company consolidates all entities that it controls through either majority ownership or voting rights. In addition, the Company consolidates all VIEs of which the Company is considered the primary beneficiary. VIEs are entities in which equity investors (i) do not have the characteristics of a controlling financial interest and/or (ii) do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties. The entity that consolidates a VIE is its primary beneficiary and is generally the entity with (i) the power to direct the activities that most significantly affect the VIE’s economic performance and (ii) the right to receive benefits from the VIE or the obligation to absorb losses of the VIE that could be significant to the VIE. Non-controlling interest represents the equity of a consolidated joint venture that is not owned by the Company. The accompanying consolidated financial statements include the accounts of collateralized loan obligations ("CLOs") issued and securitized by wholly owned subsidiaries of the Company. The Company has determined the CLOs are VIEs of which the Company's subsidiary is the primary beneficiary. The assets and liabilities of the CLOs are consolidated in the accompanying consolidated balance sheets in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 810, Consolidation. |
Acquisition Expenses | Acquisition Expenses The Company capitalizes certain direct costs relating to loan origination activities. The cost is amortized over the life of the loan and recognized in interest income in the Company's consolidated statements of operations. Acquisition expenses paid on future funding amounts are expensed within the acquisition expenses line in the Company's consolidated statements of operations. |
Cash and Cash Equivalents | Cash and Cash EquivalentsCash consists of amounts deposited with high quality financial institutions. These deposits are guaranteed by the Federal Deposit Insurance Company up to an insurance limit. Cash equivalents include short-term, liquid investments in money market funds with original maturities of 90 days or less when purchased. |
Restricted Cash | Restricted Cash Restricted cash primarily consists of cash pledged as margin on repurchase agreements and derivative transactions. The duration of this restricted cash generally matches the duration of the related repurchase agreements or derivative transaction. |
Commercial Mortgage Loans | Commercial Mortgage Loans Held for Investment - Commercial mortgage loans that are held for investment purposes and are anticipated to be held until maturity, are carried at cost, net of unamortized acquisition expenses, discounts or premiums and unfunded commitments. Commercial mortgage loans, held for investment purposes, are carried at amortized cost less allowance for credit losses. Interest income is recorded on the accrual basis and related discounts, premiums and acquisition expenses on investments are amortized over the life of the investment using the effective interest method. Amortization is reflected as an adjustment to interest income in the Company’s consolidated statements of operations. Guaranteed loan commitment fees payable by the borrower upon maturity are accreted over the life of the investment using the effective interest method. The accretion of guaranteed loan commitment fees is recognized in interest income in the Company's consolidated statements of operations. Held for Sale - Commercial mortgage loans that are intended to be sold in the foreseeable future are reported as held for sale and are transferred at fair value and recorded at the lower of cost or fair value with changes recorded through the statements of operations. Unamortized loan origination costs for commercial mortgage loans held for sale that are carried at the lower of cost or fair value are capitalized as part of the carrying value of the loans and recognized upon the sale of such loans. Amortization of origination costs ceases upon transfer of commercial mortgage loans to held for sale. Held for Sale, Accounted for Under the Fair Value Option - The fair value option provides an option to elect fair value as an alternative measurement for selected financial assets, financial liabilities, and written loan commitments. The Company has elected to measure commercial mortgage loans held for sale in the Company's TRS under the fair value option. These commercial mortgage loans are included in the Commercial mortgage loans, held for sale, measured at fair value in the consolidated balance sheets. Interest income received on commercial mortgage loans, held for sale, measured at fair value is recorded on the accrual basis of accounting and is included in interest income in the consolidated statements of operations. Costs to originate these investments are expensed when incurred. Real estate owned The Company classifies its real estate owned as long-lived assets held for investment or as long-lived assets held for sale. Held for investment assets are stated at cost, as adjusted for any impairment loss, less accumulated depreciation. Real estate owned is classified as held for sale in the period in which the six criteria under ASC Topic 360, "Property, Plant, and Equipment" are met: (1) we commit to a plan and have the authority to sell the asset; (2) the asset is available for sale in its current condition; (3) we have initiated an active marketing plan to locate a buyer for the asset; (4) the sale of the asset is both probable and expected to qualify for full sales recognition within a period of 12 months; (5) the asset is being actively marketed for sale at a price that is reflective of its current fair value; and (6) we do not anticipate changes to our plan to sell the asset. Held for sale assets are carried at the lower of depreciated cost or estimated fair value, less estimated costs to sell. Amounts capitalized to real estate owned consist of the cost of acquisition or construction, any tenant improvements or major improvements, betterments that extend the useful life of the related asset, and transaction costs associated with the acquisition of an individual asset that does not qualify as a business combination. All repairs and maintenance are expensed as incurred. Additionally, the Company capitalizes interest while the development, or redevelopment, of a real estate owned asset is in progress. No development or redevelopments of real estate owned assets are in progress as of September 30, 2022. The Company’s real estate owned assets are depreciated or amortized using the straight-line method over the following useful lives: Buildings 40 years Furniture, fixtures, and equipment 15 years Site Improvements 5 - 25 years Intangible lease assets Lease term The Company continually monitors events and changes in circumstances that could indicate that the carrying amounts of the real estate and related intangible assets of either operating properties or properties under construction in which the Company has an ownership interest, either directly or through investments in joint ventures, may not be recoverable. When indicators of potential impairment are present, management assesses whether the respective carrying values will be recovered from the undiscounted future operating cash flows expected from the use of the asset and its eventual disposition for assets held for use, or from the estimated fair values, less costs to sell, for assets held for sale. In the event that the expected undiscounted future cash flows for assets held for use or the estimated fair value, less costs to sell, for assets held for sale do not exceed the respective asset carrying value, management adjusts such assets to the respective estimated fair values and recognizes an impairment loss. Estimated fair values are calculated based on the following information, depending upon availability, in order of preference: (i) recently quoted market prices, (ii) market prices for comparable properties, or (iii) the present value of undiscounted cash flows, including estimated sales value (which is based on key assumptions such as estimated market rents, lease-up periods, estimated lease terms, and capitalization and discount rates) less estimated selling costs. Real estate owned assets that are probable to be sold within one year are reported as held for sale. Real estate owned assets classified as held for sale are measured at the lower of its carrying amount or fair value less cost to sell. Real estate owned assets are not depreciated or amortized while they are classified as held for sale. Interest and other expenses attributable to the liabilities of a disposal group classified as held for sale continue to be accrued. Upon the disposition of a real estate owned asset, the Company calculates realized gains and losses as net proceeds received less the carrying value of the real estate owned asset. Net proceeds received are net of direct selling costs associated with the disposition of the real estate owned asset. Fair Value of Assets and Liabilities of Acquired Properties Upon the acquisition of real properties, the Company records the fair value of properties (plus any related acquisition costs) allocated based on relative fair value as tangible assets, consisting of land and building, and identified intangible assets and liabilities, consisting of the value of above-market and below-market leases and the value of in-place leases, based on their estimated fair values. Substantially all of the Company’s property acquisitions qualify as asset acquisitions under Accounting Standards Codification ("ASC") 805, Business Combinations. The estimated fair values of the tangible assets of an acquired property are determined by valuing the property as if it were vacant, and the “as-if-vacant” value is then allocated to land and building based on management’s determination of the estimated fair value of these assets. Management relies on a sales comparison approach using closed land sales and listings in determining the land value, and determines the as-if-vacant estimated fair value of a property using methods similar to those used by independent appraisers. Factors considered by management in performing these analyses include an estimate of carrying costs during the expected lease-up periods considering current market conditions and costs to execute similar leases. In estimating carrying costs, management includes real estate taxes, insurance, and other operating expenses and estimates of lost rental revenue during the expected lease-up periods based on current market demand. Management also estimates the cost to execute similar leases including leasing commissions, legal, and other related costs. The estimated fair values of above-market and below-market in-place leases are recorded based on the present value (using an interest rate which reflects the risks associated with the leases acquired) of the difference between (i) the contractual amounts to be paid pursuant to the in-place leases and (ii) management’s estimate of market rates for the corresponding in-place leases, measured over a period equal to the remaining terms of the leases, taking into consideration the probability of renewals for any below-market leases. The capitalized above-market and below-market lease values are recorded as intangible lease assets or liabilities and amortized as an adjustment to rental revenues over the remaining terms of the respective leases. The estimated fair values of in-place leases include an estimate of the direct costs associated with obtaining the acquired or "in place" tenant and estimates of opportunity costs associated with lost rentals that are avoided by acquiring an in-place lease. The amount capitalized as direct costs associated with obtaining a tenant include commissions, tenant improvements, and other direct costs and are estimated based on management’s consideration of current market costs to execute a similar lease. These direct lease origination costs are included in deferred lease costs in the accompanying consolidated balance sheets and are amortized to expense over the remaining terms of the respective leases. The value of opportunity costs is calculated using the contractual amounts to be paid pursuant to the in-place leases over a market absorption period for a similar lease. These lease intangibles are included in intangible lease assets in the accompanying consolidated balance sheets and are amortized to expense over the remaining terms of the respective leases. |
Credit Losses | Credit Losses The allowances for credit losses required under Accounting Standards Update ("ASU") No. 2016-13, Financial Instruments Credit Losses, are deducted from the respective loans’ amortized cost basis on the Company’s consolidated balance sheets. The allowance for credit losses attributed to unfunded loan commitments is included in Accounts payable and accrued expenses on the consolidated balance sheets. General allowance for credit losses The general allowance for credit losses for the Company’s financial instruments carried at amortized cost and off-balance sheet credit exposures, such as loans held for investment and unfunded loan commitments represents a lifetime estimate of expected credit losses. Factors considered by the Company when determining the general allowance for credit losses reserve include loan-specific characteristics such as loan-to-value (“LTV”) ratio, vintage year, loan term, property type, occupancy and geographic location, financial performance of the borrower, expected payments of principal and interest, as well as internal or external information relating to past events, current conditions and reasonable and supportable forecasts. The general allowance for credit losses is measured on a collective (pool) basis when similar risk characteristics exist for multiple financial instruments. If similar risk characteristics do not exist, the Company measures the general allowance for credit losses on an individual instrument basis. The determination of whether a particular financial instrument should be included in a pool can change over time. If a financial asset’s risk characteristics change, the Company evaluates whether it is appropriate to continue to keep the financial instrument in its existing pool or evaluate it individually. In measuring the general allowance for credit losses for financial instruments including our unfunded loan commitments that share similar risk characteristics, the Company primarily applies a probability of default (“PD”)/loss given default (“LGD”) model for instruments that are collectively assessed, whereby the allowance for credit losses is calculated as the product of PD, LGD and exposure at default (“EAD”). The Company’s model principally utilizes historical loss rates derived from a commercial mortgage backed securities database with historical losses from 1998 to 2022 provided by a reputable third party, forecasting the loss parameters using a scenario-based statistical approach over a reasonable and supportable forecast period of twelve months, followed by an immediate reversion to average historical losses. For financial instruments assessed on an individual basis, including when it is probable that the Company will be unable to collect the full payment of principal and interest on the instrument, the Company applies a discounted cash flow (“DCF”) methodology. Specific allowance for credit losses For financial instruments where, based on the Company’s assessment at the reporting date, the repayment is expected to be provided substantially through the operation or sale of the collateral, the Company may elect to use as a practical expedient the fair value of the collateral as of the reporting date when determining a specific allowance for credit losses. For financial instruments which the Company identifies reasonable doubt as to whether the collection of contractual components can be satisfied, a loan specific allowance analysis is performed. Determining whether a specific allowance for a loan is required entails significant judgment from management and is based on several factors including (i) the underlying collateral performance, (ii) discussions with the borrower, (iii) borrower events of default, and (iv) other facts that impact the borrower’s ability to pay the contractual amounts due under the terms of the loan. If a loan is determined to have a specific allowance, the specific allowance is recorded as a component of our Current Expected Credit Loss ("CECL") reserve by applying the practical expedient for collateral dependent loans. The CECL reserve is assessed on an individual basis for such loans by comparing the estimated fair value of the underlying collateral, less costs to sell, to the book value of the respective loan. These valuations require significant judgments, which include assumptions regarding capitalization rates, discount rates, leasing, creditworthiness of major tenants, occupancy rates, availability and cost of financing, exit plans, loan sponsorship, actions of other lenders, and other factors deemed relevant by the Company. Actual losses, if any, could ultimately differ materially from these estimates. The Company only expects to write-off specific allowances if and when such amounts are deemed non-recoverable. Non-recoverability is generally determined at the time a loan is settled, or in the case of foreclosure, when the underlying asset is sold. Non-recoverability may also be concluded if, in the Company's determination, it is deemed certain that all amounts due will not be collected. If a loan is determined to be impaired based on the above considerations, management records a write-off through a charge to the "Specific allowance for credit losses" and the respective loan balance. Risk Rating In developing the allowances for credit losses for its loans held for investment, the Company performs a comprehensive analysis of its loan portfolio and assigns risk ratings to loans that incorporate management's current judgments about their credit quality based on all known and relevant internal and external factors that may affect collectability, using similar factors as those in developing the allowance for credit losses. This methodology results in loans being segmented by risk classification into risk rating categories that are associated with estimated probabilities of default and principal loss. Risk rating categories range from "1" to "5" with "1" representing the lowest risk of loss and "5" representing the highest risk of loss with the ratings updated quarterly. At the time of origination or purchase, loans held for investment are ranked as a “2” and will move accordingly going forward based on the ratings which are defined as follows: 1. Very Low Risk- Investment exceeding fundamental performance expectations and/or capital gain expected. Trends and risk factors since time of investment are favorable. 2. Low Risk- Performing consistent with expectations and a full return of principal and interest expected. Trends and risk factors are neutral to favorable. 3. Average Risk- Performing investments requiring closer monitoring. Trends and risk factors show some deterioration. 4. High Risk/Delinquent/Defaulted/Potential for Loss- Underperforming investment with the potential of some interest loss but still expecting a positive return on investment. Trends and risk factors are negative. 5. Impaired/Loss Likely- Underperforming investment with expected loss of interest and some principal. The Company also considers qualitative and environmental factors, including, but not limited to, economic and business conditions, nature and volume of the loan portfolio, lending terms, volume and severity of past due loans, concentration of credit and changes in the level of such concentrations in its determination of the allowance for credit losses. Changes in the allowances for credit losses for the Company’s financial instruments are recorded in Provision/(benefit) for credit losses on the consolidated statements of operations with a corresponding offset to the financial instrument’s amortized cost recorded on the consolidated balance sheets, or as a component of Accounts payable and accrued expenses for unfunded loan commitments. The Company has elected to not measure an allowance for credit losses for accrued interest receivable as balances are written off in a timely manner when loans, real estate securities or preferred equity investments are designated as non-performing and placed on non-accrual or cost recovery status within 90 days of becoming past due. Non-performing status The Company designates loans as non-performing when (i) full payment of principal and coupon interest components become 90-days past due ("non-accrual status"); or (ii) the Company has reasonable doubt as to whether the collection of contractual components can be satisfied ("cost recovery status"). When a loan is designated as non-performing and placed on non-accrual status, interest is only recognized as income when payment has been received. Loans designated as non-performing and placed on non-accrual status are removed from their non-performing designation when collection of principal and coupon interest components have been satisfied. When a loan is designated as non-performing and placed on cost recovery status, the cost-recovery method is applied to which receipt of principal or coupon interest is recorded as a reduction to the amortized cost until collection of all contractual components are reasonably assured. Troubled Debt Restructuring (“TDR”) The Company classifies an individual financial instrument as a TDR when it has a reasonable expectation that the financial instrument’s contractual terms will be modified in a manner that grants concession to the borrower who is experiencing financial difficulty. Concessions could include term extensions, payment deferrals, interest rate reductions, principal forgiveness, forbearance, or other actions designed to maximize the Company’s collection on the financial instrument. The Company determines the allowance for credit losses for financial instruments that are TDRs individually. |
Real Estate Securities | Real Estate Securities Available For Sale On the acquisition date, all of the Company’s commercial real estate securities were classified as available for sale ("AFS") and carried at fair value, and subsequently any unrealized gains or losses are recognized as a component of accumulated other comprehensive income or loss. The Company focuses on investing in and asset managing real estate securities. Historically this business has focused primarily on CMBS, CRE CLO bonds, unsecured REIT debt, CDO notes and other securities. Related discounts, premiums and acquisition expenses on investments are amortized over the life of the investment using the effective interest method. Amortization is reflected as an adjustment to interest income in the Company’s consolidated statements of operations. The Company uses the specific identification method in determining the cost relief for real estate securities sold. Realized gains and losses from the sale of real estate securities are included in the Company’s consolidated statements of operations. AFS real estate securities which have experienced a decline in the fair value below their amortized cost basis (i.e., impairment) are evaluated each reporting period to determine whether the decline in fair value is due to credit-related factors. Any impairment that is not credit-related is recognized in accumulated other comprehensive income, while credit-related impairment is recognized as an allowance on the consolidated balance sheets with a corresponding adjustment on the consolidated statements of operations. If the Company intends to sell an impaired real estate security or more likely than not will be required to sell such a security before recovering its amortized cost basis, the entire impairment amount is recognized in the consolidated statements of operations with a corresponding adjustment to the security’s amortized cost basis. The Company analyzes the AFS security portfolio on a periodic basis for credit losses at the individual security level using the same criteria described above for those amortized cost financial assets subject to an allowance for credit losses including but not limited to; performance of the underlying assets in the security, borrower financial resources and investment in collateral, collateral type, credit ratings, project economics and geographic location as well as national and regional economic factors. The non-credit loss component of the unrealized loss within the Company’s AFS portfolio is recognized as an adjustment to the individual security’s asset balance with an offsetting entry to accumulated other comprehensive income in the consolidated balance sheets. Trading In the merger with Capstead, the Company acquired a portfolio of residential mortgage pass-through securities consisting primarily of ARM Agency Securities issued and guaranteed by government-sponsored enterprises, either Fannie Mae, Freddie Mac, or by an agency of the federal government, Ginnie Mae. ARM Agency Securities and are classified as "trading". ARM Agency Securities are recorded at fair value on the balance sheet with trading gains and losses on the paydowns and sales of these securities recorded in the Company's consolidated statements of operations. Fair values fluctuate with current and projected changes in interest rates, prepayment expectations and other factors such as market liquidity conditions and the perceived credit quality of agency securities. Judgment is required to interpret market data and develop estimated fair values, particularly in circumstances of deteriorating credit quality and market liquidity. |
Repurchase Agreements | Repurchase Agreements Commercial mortgage loans and real estate securities sold under repurchase agreements have been treated as collateralized financing transactions because the Company maintains effective control over the transferred securities. Commercial mortgage loans and real estate securities financed through a repurchase agreement remain on the Company’s consolidated balance sheets as an asset and cash received from the purchaser is recorded as a liability. Interest paid in accordance with repurchase agreements is recorded in interest expense on the Company's consolidated statements of operations. |
Deferred Financing Cost | Deferred Financing Costs The deferred financing costs related to the Company's various Master Repurchase Agreements as well as certain prepaid subscription costs are included in Prepaid expenses and other assets on the consolidated balance sheets. Deferred financing cost on the Company's collateralized loan obligations ("CLO") are netted against the Company's CLO payable in the Collateralized loan obligations on the consolidated balance sheets. Deferred financing costs are amortized over the terms of the respective financing agreement using the effective interest method and included in interest expense on the Company's consolidated statements of operations. Unamortized deferred financing costs are generally expensed when the associated debt is refinanced or repaid before maturity. |
Offering and Related Costs | Offering and Related Costs Since 2018, the Company has from time to time offered, and may in the future offer, shares of the Company’s common stock or one or more series of its preferred stock, including its Series C convertible preferred stock (the “Series C Preferred Stock,”), former Series D convertible preferred stock (the “Series D Preferred Stock”), and Series H convertible preferred stock (the “Series H Preferred Stock”) in private placements exempt from the registration requirements of the Securities Act of 1933, as amended. In connection with these offerings, the Company incurs various offering costs. These offering costs include but are not limited to legal, accounting, printing, mailing and filing fees, and diligence expenses of broker-dealers. Offering costs for the common stock are recorded in the Company’s stockholders’ equity, while the offering costs for the Series C Preferred Stock and Series D Preferred Stock are included within Series C Preferred Stock and Series D Preferred Stock, respectively, on the Company’s consolidated balance sheets. Offering costs for the Series H Preferred Stock were expensed to the Company's consolidated statement of operations. |
Equity Incentive Plan and Restricted Share Plan | Equity Incentive Plan The Company maintains the Franklin BSP Realty Trust, Inc. 2021 Equity Incentive Plan (the “2021 Incentive Plan”), pursuant to which the Company may, from time to time, grant equity awards to the Company’s directors, officers and employees (if it ever has employees), employees of the Advisor and its affiliates, or certain of the Company’s consultants, advisors or other service providers to the Company or an affiliate of the Company. The 2021 Incentive Plan, which is administered by the Compensation Committee of the board of directors, provides for the grant of awards of share options, share appreciation rights, restricted shares, restricted share units, deferred share units, unrestricted shares, dividend equivalent rights, performance shares and other performance-based awards, other equity-based awards, LTIP units and cash bonus awards. In January 2022, the Company issued for the first time under the 2021 Incentive Plan awards of restricted stock units ("RSUs") to its officers and certain other personnel of the Advisor who provide services to the Company. These awards are service-based and vest in equal annual installments beginning on the anniversary of the date of grant over a period of three years, subject to continuing service. One share of the Company’s common stock will be issued for each unit that vests. These awards also grant non-forfeitable dividend equivalent rights equal to the cash dividend paid in the ordinary course on a common share to the Company's common shareholders. Upon termination for any reason, all unvested RSUs will be forfeited by the grantee, who will be given no further rights to such RSUs. Restricted Share Plan The Company also has an Amended and Restated Employee and Director Incentive Restricted Share Plan (the "RSP"), which provides the Company with the ability to grant awards of restricted shares to the Company’s directors, officers and employees (if the Company ever has employees), employees of the Advisor and its affiliates, employees of entities that provide services to the Company, directors of the Advisor or of entities that provide services to the Company, the Advisor and its affiliates. The total number of common shares granted under the RSP shall not exceed 5% of the Company’s authorized common shares, and in any event, will not exceed 4.0 million shares (as such number may be adjusted for stock splits, stock distributions, combinations and similar events). The RSP will expire on February 7, 2023. |
Distribution Reinvestment Plan | Distribution Reinvestment Plan Pursuant to the terms of the Company's distribution reinvestment plan ("DRIP") in effect until December 17, 2021, stockholders had the option to elect to reinvest distributions by purchasing shares of common stock in lieu of receiving cash. No dealer manager fees or selling commissions were paid with respect to shares purchased pursuant to the DRIP. The purchase price for shares purchased through the DRIP was the lesser of (i) the Company’s most recent estimated per share NAV, and (ii) the Company’s GAAP book value per share. The Company had the right to amend any aspect of the DRIP or terminate the DRIP with ten days’ notice to participants. Shares issued under the DRIP were recorded to equity in the consolidated balance sheets in the period distributions are declared. On December 17, 2021, the Company amended and restated the DRIP (the “Amended DRIP”) in recognition of the listing of the Company’s common stock on the New York Stock Exchange (“NYSE”). Shares of common stock purchased through the Amended DRIP for dividend reinvestments are supplied either directly by the Company as newly issued shares or via purchases by the DRIP administrator of shares of common stock on the open market, at the Company’s option. If the shares are purchased in the open market, the purchase price is the average price per share of shares purchased; if the shares are purchased directly from the Company, the purchase price is generally the average of the daily high and low sales prices for a share of common stock reported by the NYSE on the dividend payment date authorized by the Company’s board of directors. The Company may suspend, modify or terminate the Amended DRIP at any time in its sole discretion. |
Income Taxes | Income Taxes The Company has conducted its operations to qualify as a REIT for U.S. federal income tax purposes beginning with its taxable year ended December 31, 2013. As a REIT, if the Company meets certain organizational and operational requirements and distributes at least 90% of its "REIT taxable income" (determined before the deduction of dividends paid and excluding net capital gains) to its stockholders in a year, it will not be subject to U.S. federal income tax to the extent of the income that it distributes. However, even if the Company qualifies for taxation as a REIT, it may be subject to certain state and local taxes on income in addition to U.S. federal income and excise taxes on its undistributed income. The Company, through its TRSs, is indirectly subject to U.S. federal, state and local income taxes. The Company’s TRSs are not consolidated for U.S. federal income tax purposes, but are instead taxed as C corporations. For financial reporting purposes, the TRSs are consolidated and a provision for current and deferred taxes is established for the portion of earnings recognized by the Company with respect to its interest in its TRSs. Total income tax (benefit)/provision for the three months ended September 30, 2022 and September 30, 2021 was $0.4 million and $1.1 million, respectively. The Company uses a more-likely-than-not threshold for recognition and derecognition of tax positions taken or to be taken in a tax return. The Company has assessed its tax positions for all open tax years beginning with December 31, 2017 and concluded that there were no uncertainties to be recognized. The Company’s accounting policy with respect to interest and penalties related to tax uncertainties is to classify these amounts as provision for income taxes. The Company utilizes the TRSs to reduce the impact of the prohibited transaction tax and to avoid penalty for the holding of assets not qualifying as real estate assets for purposes of the REIT asset tests. Any income associated with a TRS is fully taxable because the TRS is subject to federal and state income taxes as a domestic C corporation based upon its net income. |
Derivatives and Hedging Activities | Derivatives and Hedging Activities In the normal course of business, the Company is exposed to the effect of interest rate changes and may undertake a strategy to limit these risks through the use of derivatives. The Company uses derivatives primarily to economically hedge against interest rates, CMBS spreads and macro market risk in order to minimize volatility. The Company may use a variety of derivative instruments that are considered conventional, including but not limited to: Treasury note futures and credit derivatives on various indices including CMBX and CDX. The Company recognizes all derivatives on the consolidated balance sheets at fair value. The Company does not designate derivatives as hedges to qualify for hedge accounting for financial reporting purposes and therefore any net payments under, or fluctuations in the fair value of these derivatives have been recognized currently in unrealized (gain)/loss on derivative instruments in the accompanying consolidated statements of operations. The Company records derivative asset and liability positions on a gross basis with any collateral posted with or received from counterparties recorded separately within Restricted cash on the Company’s consolidated balance sheets. Certain derivatives that the Company has entered into are subject to master netting agreements with its counterparties, allowing for netting of the same transaction, in the same currency, on the same date. |
Per Share Data | Per Share Data The Series C Preferred Stock, Series D Preferred Stock (when it was outstanding), and Series H Preferred Stock are each considered a participating security and the Company calculates basic earnings per share using the two-class method. The Company’s dilutive earnings per share calculation is computed using the more dilutive result of the treasury stock method, assuming the participating security is a potential common share, or the two-class method, assuming the participating security is not converted. The Company calculates basic earnings per share by dividing net income applicable to common stock for the period by the weighted-average number of shares of common stock outstanding for that period. Diluted earnings per share reflects the potential dilution that could occur from shares outstanding if potential shares of common stock with a dilutive effect have been issued in connection with the restricted stock plan or upon conversion of the outstanding shares of Series C Preferred Stock, Series D Preferred Stock (when it was outstanding) and Series H Preferred Stock, except when doing so would be anti-dilutive. |
Reportable Segments | Reportable Segments The Company has determined that it has four reportable segments based on how the chief operating decision maker reviews and manages the business. The four reporting segments are as follows: • The real estate debt business which is focused on originating, acquiring and asset managing commercial real estate debt investments, including first mortgage loans, subordinate mortgages, mezzanine loans and participations in such loans. • The real estate securities business focuses on investing in and asset managing real estate securities. Historically this business has focused primarily on CMBS, CRE CLO bonds, unsecured REIT debt, CDO notes and other securities. As a result of the October 2021 acquisition of Capstead, the Company acquired and continues to hold a portfolio of RMBS in the form of the ARM Agency Securities. The Company has, and intends to reinvest the cash and proceeds from dividends, interest, repayments and sales of these assets into its other segments and does not intend to continue to invest in ARM Agency Securities or RMBS in general. • The commercial conduit business in the Company's TRS, which is focused on originating and subsequently selling fixed-rate commercial real estate loans into the CMBS securitization market. • The real estate owned business represents real estate acquired by the Company through foreclosure, deed in lieu of foreclosure, or purchase. |
Redeemable Convertible Preferred Stock | Redeemable Convertible Preferred Stock The Company’s outstanding Series C and Series H classes of preferred stock are classified outside of permanent equity in the consolidated balance sheets. Series C Preferred Stock The Series C Preferred Stock ranks senior to the Common Stock and on parity with the Series H Preferred Stock and the Company’s 7.50% Series E Cumulative Redeemable Preferred Stock (“Series E Preferred Stock”) with respect to priority in dividends and in the distribution of assets in the event of the liquidation, dissolution or winding-up of the Company. The liquidation preference of each share of Series C Preferred Stock is the greater of (i) $5,000 plus accrued and unpaid dividends, and (ii) the amount that would be received upon a conversion of the Series C Preferred Stock into the Common Stock. Dividends on the Series C Preferred Stock, which are typically declared and paid quarterly, accrue at a rate equal to the greater of (i) an annual amount equal to 4.0% of the liquidation preference per share and (ii) the dividends that would have been paid had such share of Series C Preferred Stock been converted into a share of common stock on the first day of such quarter, subject to proration in the event the share of Series C preferred stock is not outstanding for the full quarter. Dividends are paid in arrears. Dividends will accumulate and be cumulative from the most recent date to which dividends had been paid. Pursuant to the terms of the Series C Preferred Stock, 400 outstanding shares of Series C Preferred Stock each converted into 299.2 shares of common stock on October 19, 2022, while 1,000 shares of Series C Preferred Stock were exchanged for an equal number of shares of the Company’s newly created Series I Convertible Preferred Stock, $0.01 par value per share (the “Series I Preferred Stock”), on October 20, 2022. Holders of the Series C Preferred Stock (voting as a single class with holders of common stock) are entitled to vote on each matter submitted to a vote of the stockholders of the Company upon which the holders of common stock are entitled to vote. The number of votes applicable to a share of outstanding Series C Preferred Stock will be equal to the number of shares of common stock a share of Series C Preferred Stock could have been converted into as of the record date set for purposes of such stockholder vote (rounded down to the nearest whole number of shares of common stock). In addition, the affirmative vote of the holders of two-thirds of the outstanding shares of Series C Preferred Stock, voting as a single class with other shares of parity preferred stock, is required to approve the issuance of any equity securities senior to the Series C Preferred Stock and to take certain actions materially adverse to the holders of the Series C Preferred Stock. Series D Preferred Stock All of the shares of the Series D Preferred Stock were exchanged for an equivalent number of shares of Series H Preferred Stock on June 24, 2022. Series H Preferred Stock On June 24, 2022, the Company issued 17,950 shares of Series H Preferred Stock to the holder of the Series D Preferred Stock in exchange for an equal amount of shares of Series D Preferred Stock. The exchange was undertaken to accommodate the holder’s request to extend the mandatory conversion date set forth in the terms of the Series D Preferred Stock, which was set to occur on October 19, 2022, to January 19, 2023. There are no other material differences between the terms of the Series D Preferred Stock and Series H Preferred Stock. The Company received no consideration for the exchange. The Series H Preferred Stock is on parity with the Series C Preferred Stock and Series E Preferred Stock with respect to preference on liquidation and dividend rights. The terms of the Series H Preferred Stock are substantially the same as the Series C Preferred Stock, except that the holders of the Series H Preferred Stock have the option to accelerate the mandatory conversion date, which is January 23, 2022, upon at least 10 days' written notice. Automatically Convertible Preferred Stock - Series F Preferred Stock On April 19, 2022, all of the 39,733,299 outstanding shares of the Company’s Series F Preferred Stock automatically converted on a one-for-one basis into an equal amount of shares of Common Stock, pursuant to the terms of the Articles Supplementary of the Series F Preferred Stock. There are no shares of Series F Preferred Stock outstanding. Perpetual Preferred Stock—Series E Preferred Stock The Series E Preferred Stock has no stated maturity and is not subject to any sinking fund or mandatory redemption. The Series E Preferred Stock ranks, with respect to rights to the payment of dividends and the distribution of assets upon its liquidation, dissolution or winding up, senior to the common stock and on a parity with the Series C Preferred Stock and Series H Preferred Stock. The liquidation preference is $25.00 per share, plus an amount equal to any accumulated and unpaid dividends. Holders of shares of the Series E Preferred Stock are entitled to receive, when, as and if authorized by our board of directors and declared by the Company, out of funds legally available for the payment of dividends, cumulative cash dividends at the rate of 7.50% of the $25.00 per share liquidation preference per annum (equivalent to $1.875 per annum per share). Dividends on the Series E Preferred Stock are cumulative and payable quarterly in arrears. Dividends on the Series E Preferred Stock will accumulate whether or not the Company has earnings, whether or not there are funds legally available for the payment of those dividends and whether or not those dividends are declared. The Company may, at its option, upon not less than 30 nor more than 60 days’ written notice, redeem the Series E Preferred Stock, in whole or in part, at any time or from time to time, for cash at a redemption price of $25.00 per share, plus any accumulated and unpaid dividends thereon to, but not including, the date fixed for redemption. Upon a change of control of the Company, in the event the Company does not redeem the Series E Preferred Stock, a holder of Series E Preferred Stock will have the right to convert to Common Stock upon the terms set forth in the applicable Articles Supplementary. The Series E Preferred Stock is listed on the New York Stock Exchange under the symbol “FBRT PRE”. |
Accounting Pronouncements Not Yet Adopted | Accounting Pronouncements Not Yet Adopted In March 2022, the FASB issued ASU 2022-02 "Financial Instruments-Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures," or ASU 2022-02. ASU 2022-02 eliminates the accounting guidance for troubled debt restructurings and requires disclosure of current-period gross write-offs by year of loan origination. Additionally, ASU 2022-02 updates the accounting for credit losses under ASC 326 and adds enhanced disclosures with respect to loan refinancing and restructuring in the form of principal forgiveness, interest rate concessions, other-than-insignificant payment delays, or term extensions when the borrower is experiencing financial difficulties. ASU 2022-02 is effective for fiscal years beginning after December 15, 2022, and early adoption is permitted. The amendments should be applied prospectively, however for the recognition and measurement of troubled debt restructurings, the entity has the option to apply a modified retrospective transition method, resulting in a cumulative-effect adjustment to retained earnings in the period of adoption. We are currently evaluating what impact, if any ASU 2022-02 will have on our consolidated financial statements. In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides temporary optional expedients and exceptions to the US GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burdens of the expected market transition from LIBOR and other interbank offered rates to alternative reference rates. The guidance is effective upon issuance and generally can be applied through December 31, 2022. The Company has not adopted any of the optional expedients or exceptions through September 30, 2022, but will continue to evaluate the possible adoption of any such expedients or exceptions during the effective period as circumstances evolve. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments GAAP establishes a hierarchy of valuation techniques based on the observability of inputs used in measuring financial instruments at fair values. GAAP establishes market-based or observable inputs as the preferred source of values, followed by valuation models using management assumptions in the absence of market inputs. The three levels of the hierarchy are described below: • Level I - Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date. • Level II - Inputs (other than quoted prices included in Level I) are either directly or indirectly observable for the asset or liability through correlation with market data at the measurement date and for the duration of the instrument’s anticipated life. • Level III - Unobservable inputs that reflect the entity's own assumptions about the assumptions that market participants would use in the pricing of the asset or liability and are consequently not based on market activity, but rather through particular valuation techniques. The determination of where an asset or liability falls in the above hierarchy requires significant judgment and factors specific to the asset or liability. In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. The Company evaluates its hierarchy disclosures each quarter and depending on various factors, it is possible that an asset or liability may be classified differently from quarter to quarter. The Company has implemented valuation control processes to validate the fair value of the Company's financial instruments measured at fair value including those derived from pricing models. These control processes are designed to assure that the values used for financial reporting are based on observable inputs wherever possible. In the event that observable inputs are not available, the control processes are designed to assure that the valuation approach utilized is appropriate and consistently applied and the assumptions are reasonable. Financial Instruments Measured at Fair Value on a Recurring Basis CRE CLO bonds, recorded in real estate securities, available for sale, measured at fair value on the consolidated balance sheets are valued utilizing both observable and unobservable market inputs. These factors include projected future cash flows, ratings, subordination levels, vintage, remaining lives, credit issues, and recent trades of similar real estate securities. Depending upon the significance of the fair value inputs used in determining these fair values, these real estate securities are classified in either Level II or Level III of the fair value hierarchy. The Company utilizes a third party pricing service to obtain a current estimated liquid price of the securities, resulting in a Level II classification. Real estate securities classified as trading, RMBS, are measured at fair value by utilizing a third party pricing service to obtain a current estimated liquid price of the securities. The RMBS are classified in Level II of the fair value hierarchy. Commercial mortgage loans, held for sale, measured at fair value in the Company's TRS are initially recorded at transaction proceeds, which are considered to be the best initial estimate of fair value. The Company engaged the services of a third party independent valuation firm to determine fair value of certain investments held by the Company. Fair value is determined using a discounted cash flow model that primarily considers changes in interest rates and credit spreads, weighted average life and current performance of the underlying collateral. Commercial mortgage loans, held for sale, measured at fair value that are originated in the last month of the reporting period are held and marked to the transaction proceeds. The Company classified the commercial mortgage loans, held for sale, measured at fair value as Level III. Other real estate investments, measured at fair value on the consolidated balance sheets are valued using unobservable inputs. The Company engaged the services of a third party independent valuation firm to determine fair value of certain investments, including preferred equity investments, held by the Company. Fair value is determined using a discounted cash flow model that primarily considers changes in interest rates and credit spreads, weighted average life and current performance of the underlying collateral. The Company classified the other real estate investments, measured at fair value as Level III. The fair value for Treasury note futures is derived using market prices. Treasury note futures trade on the Chicago Mercantile Exchange (“CME”). The instruments are a variety of recently issued 10-year U.S. Treasury notes. The future contracts are liquid and are centrally cleared through the CME. Treasury note futures are generally categorized in Level II of the fair value hierarchy. The fair value for credit default swaps and interest rate swaps contracts are derived using pricing models that are widely accepted by marketplace participants. Credit default swaps and interest rate swaps are traded in the OTC market. The pricing models take into account multiple inputs including specific contract terms, interest rate yield curves, interest rates, credit curves, recovery rates, and/or current credit spreads obtained from swap counterparties and other market participants. Most inputs into the models are not subjective as they are observable in the marketplace or set per the contract. Valuation is primarily determined by the difference between the contract spread and the current market spread. The contract spread (or rate) is generally fixed and the market spread is determined by the credit risk of the underlying debt or reference entity. If the underlying indices are liquid and the OTC market for the current spread is active, credit default swaps and interest rate swaps are categorized in Level II of the fair value hierarchy. If the underlying indices are illiquid and the OTC market for the current spread is not active, credit default swaps are categorized in Level III of the fair value hierarchy. The credit default swaps and interest rate swaps are generally categorized in Level II of the fair value hierarchy. The fair value of exchange-traded swap agreements hedging RMBS repurchase agreements are calculated using the net discounted future fixed cash payments and the discounted future variable cash receipts which are based on expected future interest rates derived from observable market interest rate curves. The Company also incorporates both its own nonperformance risk and its counterparties’ nonperformance risk in determining fair value. In considering the effect of nonperformance risk, the Company considered the impact of netting and credit enhancements, such as collateral postings and guarantees, and has concluded that counterparty risk is not significant to the overall valuation. Interest rate swap agreements hedging the Company's RMBS repurchase agreements are measured at fair value on a recurring basis primarily using Level II inputs. The fair value of these derivatives are calculated including accrued interest and net of variation margin amounts received or paid through the exchange, resulting in separately presenting on the balance sheet a significantly reduced fair value amount representing the unsettled fair value of these derivatives. A review of the fair value hierarchy classification is conducted on a quarterly basis. Changes in the type of inputs may result in a reclassification for certain assets or liabilities. The Company's policy with respect to transfers between levels of the fair value hierarchy is to recognize transfers into and out of each level as of the beginning of the reporting period. There were no material transfers between levels within the fair value hierarchy for the periods ended September 30, 2022 and December 31, 2021. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Property, Plant and Equipment | The Company’s real estate owned assets are depreciated or amortized using the straight-line method over the following useful lives: Buildings 40 years Furniture, fixtures, and equipment 15 years Site Improvements 5 - 25 years Intangible lease assets Lease term |
Commercial Mortgage Loans (Tabl
Commercial Mortgage Loans (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Receivables [Abstract] | |
Schedule of loans receivable by class | The following table is a summary of the Company's commercial mortgage loans, held for investment, carrying values by class (dollars in thousands): September 30, 2022 December 31, 2021 Senior loans $ 5,311,315 $ 4,204,464 Mezzanine loans 16,958 22,424 Total amortized cost of loans 5,328,273 4,226,888 General allowance for credit losses 19,195 15,827 Specific allowance for credit losses (1) 27,620 — Less: Total Allowance for Credit Losses 46,815 15,827 Total commercial mortgage loans, held for investment, net $ 5,281,458 $ 4,211,061 _________________________________________________________ (1) As of September 30, 2022, the Company recorded a specific reserve with respect to a retail loan designated as non-performing. The following tables represent the composition by loan collateral type and region of the Company's commercial mortgage loans, held for investment portfolio (dollars in thousands): September 30, 2022 December 31, 2021 Loan Collateral Type Par Value Percentage Par Value Percentage Multifamily $ 3,992,990 74.7 % $ 2,953,938 69.6 % Hospitality 503,251 9.4 % 460,884 10.9 % Office 456,866 8.6 % 485,575 11.4 % Retail 172,503 3.2 % 104,990 2.5 % Industrial 93,035 1.7 % 88,956 2.1 % Mixed Use 52,500 1.0 % 62,965 1.5 % Self Storage 44,895 0.8 % 56,495 1.3 % Manufactured Housing 34,688 0.6 % 29,159 0.7 % Total $ 5,350,728 100.0 % $ 4,242,962 100.0 % September 30, 2022 December 31, 2021 Loan Region Par Value Percentage Par Value Percentage Southeast $ 2,158,660 40.4 % $ 1,106,439 26.2 % Southwest 1,757,121 32.9 % 1,764,905 41.6 % Mideast 781,379 14.6 % 646,125 15.2 % Far West 232,734 4.3 % 301,040 7.1 % Great Lakes 169,191 3.2 % 183,930 4.3 % Various 109,230 2.0 % 68,896 1.6 % New England 66,065 1.2 % 67,651 1.6 % Rocky Mountain 43,751 0.8 % 43,751 1.0 % Plains 32,597 0.6 % 60,225 1.4 % Total $ 5,350,728 100.0 % $ 4,242,962 100.0 % The following tables represent the composition by loan collateral type and region of the Company's commercial mortgage loans, held for sale, measured at fair value (dollars in thousands): September 30, 2022 December 31, 2021 Loan Collateral Type Par Value Percentage Par Value Percentage Retail $ 25,000 56.1 % $ — — % Hospitality 19,546 43.9 % — — % Office — — % 34,250 100.0 % Total $ 44,546 100.0 % $ 34,250 100.0 % September 30, 2022 December 31, 2021 Loan Region Par Value Percentage Par Value Percentage Southeast $ 37,996 85.3 % $ 34,250 100.0 % Mideast 6,550 14.7 % — — % Total $ 44,546 100.0 % $ 34,250 100.0 % |
Schedule of allowance for credit losses | The following table presents the activity in the Company's allowance for credit losses, excluding the unfunded loan commitments, as of September 30, 2022 (dollars in thousands): MultiFamily Retail Office Industrial Mixed Use Hospitality Self-Storage Manufactured Housing Total December 31, 2021 $ 9,681 $ 288 $ 776 $ 86 $ 169 $ 4,597 $ 152 $ 78 $ 15,827 Changes: General provision/(benefit) for credit losses 32 234 (103) 15 (108) (807) (110) (47) (894) March 31, 2022 $ 9,713 $ 522 $ 673 $ 101 $ 61 $ 3,790 $ 42 $ 31 $ 14,933 Changes: General provision/(benefit) for credit losses 4,595 (128) (48) (18) (22) (687) (23) (8) 3,661 Specific provision/(benefit) for credit losses — 28,431 — — — — — — 28,431 June 30, 2022 $ 14,308 $ 28,825 $ 625 $ 83 $ 39 $ 3,103 $ 19 $ 23 $ 47,025 Changes: General provision/(benefit) for credit losses (41) (25) (181) 49 6 793 (13) 13 601 Specific provision/(benefit) for credit losses — (811) — — — — — — (811) September 30, 2022 $ 14,267 $ 27,989 $ 444 $ 132 $ 45 $ 3,896 $ 6 $ 36 $ 46,815 The following table presents the activity in the Company's allowance for credit losses, for the unfunded loan commitments, as of September 30, 2022 (dollars in thousands): MultiFamily Retail Office Industrial Mixed Use Hospitality Self-Storage Manufactured Housing Total December 31, 2021 $ 137 $ 1 $ 13 $ 3 $ 10 $ 79 $ — $ — $ 243 Changes: General provision/(benefit) for credit losses (32) 15 (4) (2) (10) (28) — — (61) March 31, 2022 $ 105 $ 16 $ 9 $ 1 $ — $ 51 $ — $ — $ 182 Changes: General provision/(benefit) for credit losses 443 (1) 1 (1) — (4) — — 438 June 30, 2022 $ 548 $ 15 $ 10 $ — $ — $ 47 $ — $ — $ 620 Changes: General provision/(benefit) for credit losses (403) — (1) 2 — 11 — 2 (389) September 30, 2022 $ 145 $ 15 $ 9 $ 2 $ — $ 58 $ — $ 2 $ 231 As part of the Company's process for monitoring the credit quality of its commercial mortgage loans, excluding those held for sale, measured at fair value, it performs a quarterly loan portfolio assessment and assigns risk ratings to each of its loans. The loans are scored on a scale of 1 to 5 as follows: Investment Rating Summary Description 1 Very Low Risk - Investment exceeding fundamental performance expectations and/or capital gain expected. Trends and risk factors since time of investment are favorable. 2 Low Risk - Performing consistent with expectations and a full return of principal and interest expected. Trends and risk factors are neutral to favorable. 3 Average Risk - Performing investments requiring closer monitoring. Trends and risk factors show some deterioration. 4 High Risk/Defaulted/Potential For Loss - Underperforming investment with the potential of some interest loss but still expecting a positive return on investment. Trends and risk factors are negative. 5 Impaired/Loss Likely - Underperforming investment with expected loss of interest and some principal. |
Schedule of allocation by risk rating | The following tables present the amortized cost of our commercial mortgage loans, held for investment as of September 30, 2022 and December 31, 2021, by loan collateral type, the Company’s internal risk rating and year of origination. The risk ratings are updated as of September 30, 2022. As of September 30, 2022 2022 2021 2020 2019 2018 2017 Total Multifamily: Risk Rating: 1-2 internal grade $ 1,402,934 $ 2,276,836 $ 92,829 $ — $ 37,851 $ — $ 3,810,450 3-4 internal grade — 95,036 10,852 24,058 37,025 — 166,971 Total Multifamily Loans $ 1,402,934 $ 2,371,872 $ 103,681 $ 24,058 $ 74,876 $ — $ 3,977,421 Retail: Risk Rating: 1-2 internal grade $ 20,941 $ 33,870 $ — $ 8,203 $ — $ — $ 63,014 3-4 internal grade — — — — — — — 5 internal grade 105,498 — — — — — 105,498 Total Retail Loans $ 126,439 $ 33,870 $ — $ 8,203 $ — $ — $ 168,512 Office: Risk Rating: 1-2 internal grade $ — $ 50,343 $ 203,840 $ 108,152 $ 18,746 $ — $ 381,081 3-4 internal grade — — 36,343 25,736 12,977 — 75,056 Total Office Loans $ — $ 50,343 $ 240,183 $ 133,888 $ 31,723 $ — $ 456,137 Industrial: Risk Rating: 1-2 internal grade $ 77,712 $ — $ 14,946 $ — $ — $ — $ 92,658 3-4 internal grade — — — — — — — Total Industrial Loans $ 77,712 $ — $ 14,946 $ — $ — $ — $ 92,658 Mixed Use: Risk Rating: 1-2 internal grade $ 19,926 $ 32,446 $ — $ — $ — $ — $ 52,372 3-4 internal grade — — — — — — — Total Mixed Use Loans $ 19,926 $ 32,446 $ — $ — $ — $ — $ 52,372 Hospitality: Risk Rating: 1-2 internal grade $ 129,645 $ 155,287 $ 26,956 $ 58,814 $ 22,195 $ — $ 392,897 3-4 internal grade — — — 29,966 — 78,928 108,894 Total Hospitality Loans $ 129,645 $ 155,287 $ 26,956 $ 88,780 $ 22,195 $ 78,928 $ 501,791 Self-Storage: Risk Rating: 1-2 internal grade $ — $ 14,976 $ 29,846 $ — $ — $ — $ 44,822 3-4 internal grade — — — — — — — Total Self-Storage Loans $ — $ 14,976 $ 29,846 $ — $ — $ — $ 44,822 Manufactured Housing: Risk Rating: 1-2 internal grade $ 10,469 $ 6,674 $ 17,417 $ — $ — $ — $ 34,560 3-4 internal grade — — — — — — — Total Manufactured Housing Loans $ 10,469 $ 6,674 $ 17,417 $ — $ — $ — $ 34,560 Total $ 1,767,125 $ 2,665,468 $ 433,029 $ 254,929 $ 128,794 $ 78,928 $ 5,328,273 As of December 31, 2021 2021 2020 2019 2018 2017 Total Multifamily: Risk Rating: 1-2 internal grade $ 2,438,376 $ 270,953 $ 103,989 $ 90,877 $ — $ 2,904,195 3-4 internal grade — — — 37,025 — 37,025 Total Multifamily Loans $ 2,438,376 $ 270,953 $ 103,989 $ 127,902 $ — $ 2,941,220 Retail: Risk Rating: 1-2 internal grade $ 33,830 $ 11,928 $ 29,515 $ 29,452 $ — $ 104,725 3-4 internal grade — — — — — — Total Retail Loans $ 33,830 $ 11,928 $ 29,515 $ 29,452 $ — $ 104,725 Office: Risk Rating: 1-2 internal grade $ 50,291 $ 253,759 $ 136,800 $ 43,308 $ — $ 484,158 3-4 internal grade — — — — — — Total Office Loans $ 50,291 $ 253,759 $ 136,800 $ 43,308 $ — $ 484,158 Industrial: Risk Rating: 1-2 internal grade $ — $ 31,906 $ — $ — $ — $ 31,906 3-4 internal grade — — 56,933 — — 56,933 Total Industrial Loans $ — $ 31,906 $ 56,933 $ — $ — $ 88,839 Mixed Use: Risk Rating: 1-2 internal grade $ 32,395 $ 30,325 $ — $ — $ — $ 62,720 3-4 internal grade — — — — — — Total Mixed Use Loans $ 32,395 $ 30,325 $ — $ — $ — $ 62,720 Hospitality: Risk Rating: 1-2 internal grade $ 153,032 $ 26,920 $ 34,054 $ — $ — $ 214,006 3-4 internal grade — — 113,961 52,790 79,102 245,853 Total Hospitality Loans $ 153,032 $ 26,920 $ 148,015 $ 52,790 $ 79,102 $ 459,859 Self-Storage: Risk Rating: 1-2 internal grade $ 14,948 $ 41,382 $ — $ — $ — $ 56,330 3-4 internal grade — — — — — — Total Self-Storage Loans $ 14,948 $ 41,382 $ — $ — $ — $ 56,330 Manufactured Housing: Risk Rating: 1-2 internal grade $ 6,665 $ 22,372 $ — $ — $ — $ 29,037 3-4 internal grade — — — — — — Total Manufactured Housing Loans $ 6,665 $ 22,372 $ — $ — $ — $ 29,037 Total $ 2,729,537 $ 689,545 $ 475,252 $ 253,452 $ 79,102 $ 4,226,888 The following table represents the allocation by risk rating for the Company's commercial mortgage loans, held for investment (dollars in thousands): September 30, 2022 December 31, 2021 Risk Rating Number of Loans Par Value Risk Rating Number of Loans Par Value 1 — $ — 1 — $ — 2 148 4,890,312 2 148 3,903,047 3 14 244,109 3 16 282,840 4 3 107,077 4 1 57,075 5 1 109,230 5 — — 166 $ 5,350,728 165 $ 4,242,962 |
Schedule of financing receivable past due | The following table presents an aging summary of the loans amortized cost basis as of September 30, 2022 (dollars in thousands): Multifamily Retail Office Industrial Mixed Use Hospitality Self-Storage Manufactured Housing Total Status: Current $ 3,977,421 $ 63,014 $ 456,137 $ 92,658 $ 52,372 $ 444,716 $ 44,822 $ 34,560 $ 5,165,700 1-29 days past due — — — — — — — — 30-59 days past due — — — — — — — — — 60-89 days past due — — — — — — — — — 90-119 days past due — — — — — — — — — 120+ days past due (1) — 105,498 — — — 57,075 — — 162,573 Total $ 3,977,421 $ 168,512 $ 456,137 $ 92,658 $ 52,372 $ 501,791 $ 44,822 $ 34,560 $ 5,328,273 _________________________________________________________ (1) For the three and nine months ended September 30, 2022, there was no interest income recognized on these loans. |
Financing Receivable, Nonaccrual | The following table presents the amortized cost basis of the loans on nonaccrual status as of September 30, 2022 and December 31, 2021 (dollars in thousands): September 30, 2022 December 31, 2021 Non-performing loan amortized cost at beginning of year, January 1 $ 57,075 $ 94,887 Addition of non-performing loan amortized cost 105,498 — Less: Removal of non-performing loan amortized cost — 37,812 Non-performing loan amortized cost at end of period $ 162,573 $ 57,075 |
Schedule of real estate notes receivable rollforward | For the nine months ended September 30, 2022 and year ended December 31, 2021, the activity in the Company's commercial mortgage loans, held for investment portfolio was as follows (dollars in thousands): Nine Months Ended September 30, 2022 Year Ended December 31, 2021 Balance at Beginning of Year $ 4,211,061 $ 2,693,848 Acquisitions and originations 1,980,296 2,897,002 Principal repayments (863,186) (1,286,598) Discount accretion/premium amortization 8,780 7,038 Loans transferred from/(to) commercial real estate loans, held for sale (9,296) (52,615) Net fees capitalized into carrying value of loans (12,803) (15,150) General (provision)/benefit for credit losses (3,368) 4,770 Specific (provision)/benefit for credit losses (27,620) — Cost recovery (2,406) — Charge-off from allowance — 289 Transfer to real estate owned — (37,523) Balance at End of Period $ 5,281,458 $ 4,211,061 |
Real Estate Securities (Tables)
Real Estate Securities (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Real Estate Securities Classified As Trading | The following is a summary of the Company's RMBS classified by collateral type and interest rate characteristics (dollars in thousands): Carrying Amount Average Yield (1) September 30, 2022 Agency Securities: Fannie Mae/Freddie Mac ARMs $ 252,491 2.48 % December 31, 2021 Agency Securities: Fannie Mae/Freddie Mac ARMs $ 4,246,803 2.23 % Ginnie Mae ARMs 320,068 2.72 % $ 4,566,871 2.26 % ________________________________________________________ (1) Average yield is presented for the period then ended, and is based on the cash component of interest income expressed as a percentage on average cost basis (the “cash yield”). |
Real Estate Securities Classified As Available For Sale | The following is a summary of the Company's real estate securities, CRE CLO bonds, as of September 30, 2022 (in thousands): September 30, 2022 Type Interest Rate Maturity Par Value Fair Value CRE CLO bond 1 5.8% 8/19/2035 $ 40,000 $ 39,800 CRE CLO bond 2 6.3% 8/19/2035 25,000 24,875 CRE CLO bond 3 7.1% 8/19/2035 10,000 9,950 $ 75,000 $ 74,625 The following table shows the amortized cost, allowance for expected credit losses, unrealized gain/(loss) and fair value of the Company's CRE CLO bonds by investment type as of September 30, 2022 (dollars in thousands): Amortized Cost Credit Loss Allowance Unrealized Gain Unrealized Loss Fair Value September 30, 2022 CLOs $ 74,998 $ — $ — $ (373) $ 74,625 |
Real Estate Owned (Tables)
Real Estate Owned (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Real Estate [Abstract] | |
Summary of real estate owned | The following table summarizes the Company's real estate owned asset, held for investment, as of September 30, 2022 (dollars in thousands): Acquisition Date Property Type Primary Location(s) Land Building and Improvements Furniture, Fixtures and Equipment Accumulated Depreciation Real Estate Owned, net September 2021 Industrial Jeffersonville, GA $ 3,436 $ 84,259 $ 2,928 $ (2,301) $ 88,322 The following table summarizes the Company's real estate owned asset, held for investment, as of December 31, 2021 (dollars in thousands): Acquisition Date Property Type Primary Location(s) Land Building and Improvements Furniture, Fixtures and Equipment Accumulated Depreciation Real Estate Owned, net September 2021 Industrial Jeffersonville, GA $ 3,436 $ 84,259 $ 2,928 $ (575) $ 90,048 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Leases [Abstract] | |
Schedule of intangible leased assets | The following table summarizes the Company's intangible lease asset recognized in the consolidated balance sheets as of September 30, 2022 (dollars in thousands): Acquisition Date Property Type Primary Location(s) Intangible Lease Asset, Gross Accumulated Amortization Intangible Lease Asset, Net of Amortization September 2021 Industrial Jeffersonville, GA $ 49,192 $ (2,879) $ 46,313 The following table summarizes the Company's intangible lease asset recognized in the consolidated balance sheets as of December 31, 2021 (dollars in thousands): Acquisition Date Property Type Primary Location(s) Intangible Lease Asset, Gross Accumulated Amortization Intangible Lease Asset, Net of Amortization September 2021 Industrial Jeffersonville, GA $ 49,192 $ (720) $ 48,472 |
Schedule of future minimum payments to be received | The following table summarizes the Company's schedule of future minimum rents to be received under the lease as described above (dollars in thousands): Future Minimum Rents September 30, 2022 2022 (October - December) $ 1,992 2023 8,046 2024 8,207 2025 8,372 2026 8,539 2027 and beyond 114,981 Total future minimum rent $ 150,137 |
Schedule of expected future amortization expense | The following table summarizes the Company's expected amortization for intangible assets over the next five years, assuming no further acquisitions or dispositions (dollars in thousands): Amortization Expense September 30, 2022 2022 (October - December) $ (720) 2023 (2,880) 2024 (2,880) 2025 (2,880) 2026 (2,880) |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of repurchase facilities and agreements | The details of the Company's Repo Facilities as of September 30, 2022 and December 31, 2021 are as follows (dollars in thousands): As of September 30, 2022 Repurchase Facility Committed Financing Amount Outstanding Interest Expense (1) Ending Weighted Average Interest Rate Term Maturity JPM Repo Facility (2) $ 500,000 $ 235,548 $ 6,857 5.78 % 10/6/2023 CS Repo Facility (3) 600,000 265,801 5,048 5.61 % 7/11/2023 WF Repo Facility (4) 500,000 40,476 6,027 5.17 % 11/21/2023 Barclays Revolver Facility (5) 250,000 — 1,109 N/A 9/20/2023 Barclays Repo Facility (6) 500,000 157,583 6,102 5.19 % 3/14/2025 Total $ 2,350,000 $ 699,408 $ 25,143 ________________________________________________________ (1) For the nine months ended September 30, 2022. Includes amortization of deferred financing costs. (2) With one-year extension option available at the Company's discretion. On July 7, 2022, the committed financing was increased from $400 million to $500 million . Additionally, on September 29, 2022, the Company extended the maturity date to October 6, 2023 (3) O n July 12, 2022, the maturity date was extended to July 11, 2023 and the committed financing was increased from $300 million to $600 million . (4) On May 12, 2022, the committed financing amount was increased from $450 million to $500 million. There are three more one-year extension options available at the Company's discretion. (5) The Company may increase the total commitment amount by an amount between $100 million and $150 million for three month intervals, on an unlimited basis prior to maturity. (6) There are two one-year extension options available at the Company's discretion. As of December 31, 2021 Repurchase Facility Committed Financing Amount Outstanding Interest Expense (1) Ending Weighted Average Interest Rate Term Maturity JPM Repo Facility $ 400,000 $ 136,470 $ 5,178 2.13 % 10/6/2022 CS Repo Facility 300,000 137,364 3,446 2.43 % 9/30/2022 WF Repo Facility 450,000 186,734 2,090 1.64 % 11/21/2023 Barclays Revolver Facility 250,000 166,700 1,976 6.12 % 9/20/2023 Barclays Repo Facility 500,000 392,332 4,057 1.76 % 3/14/2025 Total $ 1,900,000 $ 1,019,600 $ 16,747 ________________________________________________________ (1) For the year ended December 31, 2021. Includes amortization of deferred financing costs. Below is a summary of the Company's MRAs as of September 30, 2022 and December 31, 2021 (dollars in thousands): Weighted Average Counterparty Amount Outstanding Interest Expense Collateral Pledged (1) Interest Rate Days to Maturity As of September 30, 2022 JP Morgan Securities LLC $ 48,817 $ 301 $ 57,468 3.95 % 27 Goldman Sachs International — — — N/A N/A Barclays Capital Inc. 63,796 513 80,331 3.78 % 19 Citigroup Global Markets, Inc. — — — N/A N/A Total/Weighted Average $ 112,613 $ 814 $ 137,799 3.85 % 23 As of December 31, 2021 JP Morgan Securities LLC $ 19,025 $ 261 $ 24,087 1.14 % 10 Goldman Sachs International — 37 — N/A N/A Barclays Capital Inc. 15,286 526 19,131 1.21 % 14 Citigroup Global Markets, Inc. — 81 — N/A N/A Total/Weighted Average $ 34,311 $ 905 $ 43,218 1.71 % 12 ________________________________________________________ (1) Includes $62.9 million Repurchase agreements (and related pledged collateral, including accrued interest receivable), classified by remaining maturities, and related weighted average borrowing rates as of the indicated dates were as follows (dollars in thousands): Collateral Accrued Borrowings Weighted Average As of September 30, 2022 Repurchase arrangements secured by Agency securities with maturities of 30 days or less $ 235,563 $ 528 $ 225,000 3.16 % As of December 31, 2021 Repurchase arrangements secured by Agency securities with maturities of 30 days or less $ 4,327,020 $ 8,908 $ 4,144,473 0.13 % |
Schedule of collateralized loan obligations by tranche | Note balances net of deferred issuance costs, and related weighted average interest rates as of the indicated dates (calculated including issuance cost amortization and adjusted for the effects of related derivatives held as cash flow hedges prior to termination) were as follows (dollars in thousands): As of September 30, 2022 As of December 31, 2021 Borrowings Weighted Average Borrowings Weighted Average Junior subordinated notes maturing in: October 2035 ($35,000 face amount) $ 34,499 3.72 % $ 34,470 7.86 % December 2035 ($40,000 face amount) 39,503 3.49 % 39,474 7.63 % September 2036 ($25,000 face amount) 24,668 3.49 % 24,650 7.67 % $ 98,670 3.57 % $ 98,594 7.72 % 2019-FL5 Issuer 2021-FL6 Issuer, 2021-FL7 Issuer, 2022-FL8 Issuer and 2022-FL9 Issuer (the "CLOs"), respectively, as of September 30, 2022 (dollars in thousands): CLO Facility Tranche Par Value Issued Par Value Outstanding (1) Interest Rate Maturity Date 2019-FL5 Issuer Tranche A $ 407,025 $ 49,645 1M LIBOR + 115 5/15/2029 2019-FL5 Issuer Tranche A-S 76,950 76,950 1M LIBOR + 148 5/15/2029 2019-FL5 Issuer Tranche B 50,000 50,000 1M LIBOR + 140 5/15/2029 2019-FL5 Issuer Tranche C 61,374 61,374 1M LIBOR + 200 5/15/2029 2019-FL5 Issuer Tranche D 48,600 5,000 1M LIBOR + 240 5/15/2029 2019-FL5 Issuer Tranche E 20,250 20,250 1M LIBOR + 285 5/15/2029 2021-FL6 Issuer Tranche A 367,500 367,500 1M LIBOR + 110 3/15/2036 2021-FL6 Issuer Tranche A-S 86,625 86,625 1M LIBOR + 130 3/15/2036 2021-FL6 Issuer Tranche B 33,250 33,250 1M LIBOR + 160 3/15/2036 2021-FL6 Issuer Tranche C 41,125 41,125 1M LIBOR + 205 3/15/2036 2021-FL6 Issuer Tranche D 44,625 44,625 1M LIBOR + 300 3/15/2036 2021-FL6 Issuer Tranche E 11,375 11,375 1M LIBOR + 350 3/15/2036 2021-FL7 Issuer Tranche A 508,500 508,500 1M LIBOR + 132 12/21/2038 2021-FL7 Issuer Tranche A-S 13,500 13,500 1M LIBOR + 165 12/21/2038 2021-FL7 Issuer Tranche B 52,875 52,875 1M LIBOR + 205 12/21/2038 2021-FL7 Issuer Tranche C 66,375 66,375 1M LIBOR + 230 12/21/2038 2021-FL7 Issuer Tranche D 67,500 67,500 1M LIBOR + 275 12/21/2038 2021-FL7 Issuer Tranche E 13,500 13,500 1M LIBOR + 340 12/21/2038 2022-FL8 Issuer Tranche A 690,000 690,000 1M LIBOR + 150 2/15/2037 2022-FL8 Issuer Tranche A-S 66,000 66,000 1M LIBOR + 185 2/15/2037 2022-FL8 Issuer Tranche B 55,500 55,500 1M LIBOR + 205 2/15/2037 2022-FL8 Issuer Tranche C 67,500 67,500 1M LIBOR + 230 2/15/2037 2022-FL8 Issuer Tranche D 81,000 81,000 1M LIBOR + 350 2/15/2037 2022-FL9 Issuer Tranche A 423,667 423,667 1M LIBOR + 255 5/15/2039 2022-FL9 Issuer Tranche A-S 96,380 96,380 1M LIBOR + 310 5/15/2039 2022-FL9 Issuer Tranche B 42,166 42,166 1M LIBOR + 360 5/15/2039 2022-FL9 Issuer Tranche C 48,189 48,189 1M LIBOR + 415 5/15/2039 2022-FL9 Issuer Tranche D 49,194 49,194 1M LIBOR + 505 5/15/2039 2022-FL9 Issuer Tranche E 11,041 11,041 1M LIBOR + 565 5/15/2039 $ 3,601,586 $ 3,200,606 ________________________________________________________ (1) Excludes $453.4 million of CLO notes, held by the Company, which are eliminated within the collateralized loan obligations line in the consolidated balance sheet as of September 30, 2022. The following table represents the terms of the notes issued by 2018-FL4 Issuer, 2019-FL5 Issuer, 2021-FL6 Issuer and 2021-FL7 Issuer, as of December 31, 2021 (dollars in thousands): CLO Facility Tranche Par Value Issued Par Value Outstanding (1) Interest Rate Maturity Date 2018-FL4 Issuer Tranche A $ 416,827 $ 75,263 1M LIBOR + 105 9/15/2035 2018-FL4 Issuer Tranche A-S 73,813 73,813 1M LIBOR + 130 9/15/2035 2018-FL4 Issuer Tranche B 56,446 56,446 1M LIBOR + 160 9/15/2035 2018-FL4 Issuer Tranche C 68,385 68,385 1M LIBOR + 210 9/15/2035 2018-FL4 Issuer Tranche D 57,531 57,531 1M LIBOR + 275 9/15/2035 2018-FL4 Issuer Tranche E 28,223 28,223 1M LIBOR + 305 9/15/2035 2019-FL5 Issuer Tranche A 407,025 299,529 1M LIBOR + 115 5/15/2029 2019-FL5 Issuer Tranche A-S 76,950 76,950 1M LIBOR + 148 5/15/2029 2019-FL5 Issuer Tranche B 50,000 50,000 1M LIBOR + 140 5/15/2029 2019-FL5 Issuer Tranche C 61,374 61,374 1M LIBOR + 200 5/15/2029 2019-FL5 Issuer Tranche D 48,600 5,000 1M LIBOR + 240 5/15/2029 2019-FL5 Issuer Tranche E 20,250 20,250 1M LIBOR + 285 5/15/2029 2021-FL6 Issuer Tranche A 367,500 367,500 1M LIBOR + 110 3/15/2036 2021-FL6 Issuer Tranche A-S 86,625 86,625 1M LIBOR + 130 3/15/2036 2021-FL6 Issuer Tranche B 33,250 33,250 1M LIBOR + 160 3/15/2036 2021-FL6 Issuer Tranche C 41,125 41,125 1M LIBOR + 205 3/15/2036 2021-FL6 Issuer Tranche D 44,625 44,625 1M LIBOR + 300 3/15/2036 2021-FL6 Issuer Tranche E 11,375 11,375 1M LIBOR + 350 3/15/2036 2021-FL7 Issuer Tranche A 508,500 508,500 1M LIBOR + 132 12/21/2038 2021-FL7 Issuer Tranche A-S 13,500 13,500 1M LIBOR + 165 12/21/2038 2021-FL7 Issuer Tranche B 52,875 52,875 1M LIBOR + 205 12/21/2038 2021-FL7 Issuer Tranche C 66,375 66,375 1M LIBOR + 230 12/21/2038 2021-FL7 Issuer Tranche D 67,500 67,500 1M LIBOR + 275 12/21/2038 2021-FL7 Issuer Tranche E 13,500 13,500 1M LIBOR + 340 12/21/2038 $ 2,672,174 $ 2,179,514 ________________________________________________________ (1) Excludes $320.6 million of CLO notes, held by the Company, which are eliminated within the collateralized loan obligations line in the consolidated balance sheet as of December 31, 2021. |
Schedule of collateralized loan obligations | The below table reflects the total assets and liabilities of the Company's outstanding CLOs. The CLOs are considered VIEs and are consolidated into the Company's consolidated financial statements as of September 30, 2022 and December 31, 2021 as the Company is the primary beneficiary of the VIE. The Company is the primary beneficiary of the CLOs because (i) the Company has the power to direct the activities that most significantly affect the VIE’s economic performance and (ii) the right to receive benefits from the VIEs or the obligation to absorb losses of the VIEs that could be significant to the VIE. The VIE's are non-recourse to the Company. Assets (dollars in thousands) September 30, 2022 December 31, 2021 Cash (1) $ 87,747 $ 187,668 Commercial mortgage loans, held for investment, net (2) 3,954,397 2,629,431 Accrued interest receivable 11,253 5,918 Total Assets $ 4,053,397 $ 2,823,017 Liabilities (dollars in thousands) Notes payable (3)(4) $ 3,634,459 $ 2,482,762 Accrued interest payable 8,357 1,598 Total Liabilities $ 3,642,816 $ 2,484,360 ________________________________________________________ (1) Includes $86.9 million and $187.0 million of cash held by the servicer related to CLO loans as of September 30, 2022 and December 31, 2021, respectively. (2) The balance is presented net of allowance for credit losses of $7.4 million and $8.7 million as of September 30, 2022 and December 31, 2021, respectively. (3) Includes $453.4 million and $320.6 million of CLO notes, held by the Company, which are eliminated within the collateralized loan obligations line of the consolidated balance sheets as of September 30, 2022 and December 31, 2021, respectively. (4) The balance is presented net of deferred financing cost and discount of $19.5 million and $17.3 million as of September 30, 2022 and December 31, 2021, respectively. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Summary of the basic and diluted earnings per share | The following table presents a reconciliation of the numerators and denominators of the basic and diluted earnings per share computations and the calculation of basic and diluted earnings per share for the three and nine months ended September 30, 2022 and September 30, 2021 (in thousands, except share and per share data): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Numerator Net income/(loss) $ 35,258 $ 38,495 $ (12,958) $ 98,651 Less: Preferred stock dividends 6,899 4,804 34,865 12,040 Less: Undistributed earnings allocated to preferred stock — 4,201 — 10,706 Net income/(loss) attributable to common stockholders (basic and diluted earnings per share) $ 28,359 $ 29,490 $ (47,823) $ 75,905 Denominator Weighted-average common shares outstanding for basic earnings per share 83,665,250 44,185,241 67,965,397 44,245,733 Effect of dilutive shares (1) : Unvested restricted shares — 15,323 — 15,737 Weighted-average common shares outstanding for diluted earnings per share 83,665,250 44,200,564 67,965,397 44,261,470 Basic earnings per share $ 0.34 $ 0.67 $ (0.70) $ 1.72 Diluted earnings per share $ 0.34 $ 0.67 $ (0.70) $ 1.71 _______________________ (1) The effect of dilutive shares excluded an aggregate of 516,830 and 465,237 weighted average restricted stock units for the three and nine months ended September 30, 2022, respectively, as their effect was anti-dilutive. Additionally, the effect of dilutive shares excluded an aggregate of 5,789,378 and 21,508,045 weighted average common equivalent of convertible preferred shares for the three and nine months ended September 30, 2022, respectively, as the effect was anti-dilutive. |
Equity Transactions (Tables)
Equity Transactions (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Equity [Abstract] | |
Summary of Shares Outstanding | The following table presents the summary of the Company's outstanding shares of Common Stock and Preferred Stock as of September 30, 2022 and December 31, 2021 (dollars in thousands, except share amounts): Balance as of Shares Outstanding as of Third Quarter Dividend/Distribution Per Share (6) September 30, 2022 December 31, 2021 September 30, 2022 December 31, 2021 Common Stock - at par value (1)(2) $ 830 $ 441 83,362,351 43,965,928 $ 0.355 Redeemable Convertible Preferred Stock Series C Preferred Stock (3) $ 6,976 $ 6,971 1,400 1,400 $ 106.22 Series D Preferred Stock (4) $ — $ 89,684 — 17,950 n/a Series H Preferred Stock (4) $ 89,748 $ — 17,950 — $ 106.22 Perpetual Preferred Stock Series E Preferred Stock $ 258,742 $ 258,742 10,329,039 10,329,039 $ 0.46875 Automatically Convertible Preferred Stock Series F Preferred Stock (5) $ — $ 710,431 — 39,733,299 n/a _________________________________________________________ (1) Common Stock shares include shares issued pursuant to the Company's distribution reinvestment plan (the "DRIP") and unvested restricted shares. (2) During the nine months ended September 30, 2022, the Company repurchased 931,053 shares of Common Stock at an average price of $11.85 per share, for a total of $11.0 million. All of these shares were retired upon settlement, reducing the total outstanding shares as of September 30, 2022. See discussion in the "Stock Repurchases" section below. (3) On October 19, 2022, 400 shares of the Company's Series C Preferred Stock each automatically converted into 299.2 shares of Common Stock, pursuant to the terms of the Series C Preferred Stock, resulting in the issuance of 119,538 shares of Common Stock. The remaining 1,000 outstanding shares of Series C Preferred Stock were exchanged by the holder for an equal number of the Company's newly created Series I Preferred Stock. (4) 17,950 shares of Series D Preferred Stock were issued in March 2021, all of which were exchanged for an equal number of shares of Series H Preferred Stock in June 2022. (5) On April 19, 2022, all of the 39,733,299 outstanding shares of the Company’s Series F Preferred Stock automatically converted on a one-for-one basis into an equal amount of shares of Common Stock, pursuant to the terms of the Articles Supplementary of the Series F Preferred Stock. (6) As declared by the Company's board of directors. The following tables present the activity in the Company's Series C Preferred Stock for the nine-month periods ended September 30, 2022 and 2021 (dollars in thousands, except share amounts): For the Nine Months Ended September 30, 2022 September 30, 2021 Shares Amount Shares Amount Balance at Beginning of Period 1,400 $ 6,971 1,400 $ 6,962 Amortization of offering costs — 5 — 7 Balance at End of Period 1,400 $ 6,976 1,400 $ 6,969 The following table presents the activity in the Company's Series D Preferred Stock for the nine-month periods ended September 30, 2022 and 2021 (dollars in thousands, except share amounts): For the Nine Months Ended September 30, 2022 September 30, 2021 Shares Amount Shares Amount Balance at Beginning of Period 17,950 $ 89,684 — $ — Issuance of Preferred Stock — — 17,950 89,748 Exchanged for Series H Preferred Stock (17,950) (89,748) — — Offering costs — — — (83) Amortization of offering costs — 64 — 12 Balance at End of Period — $ — 17,950 $ 89,677 The following table presents the activity in the Company's Series E Preferred Stock for the nine-month period ended September 30, 2022 (dollars in thousands, except share amounts): For the Nine Months Ended September 30, 2022 September 30, 2021 Shares Amount Shares Amount Balance at Beginning of Period 10,329,039 $ 258,742 — $ — Balance at End of Period 10,329,039 $ 258,742 — $ — The following table presents the activity in the Company's Series F Preferred Stock for the nine-month period ended September 30, 2022 (dollars in thousands, except share amounts): For the Nine Months Ended September 30, 2022 September 30, 2021 Shares Amount Shares Amount Balance at Beginning of Period 39,733,299 $ 710,431 — $ — Automatically converted into Common Stock (39,733,299) (710,431) — — Balance at End of Period — $ — — $ — The following table presents the activity in the Company's Series H Preferred Stock for the nine-month period ended September 30, 2022 (dollars in thousands, except share amounts): For the Nine Months Ended September 30, 2022 September 30, 2021 Shares Amount Shares Amount Balance at Beginning of Period — $ — — $ — Issuance of Series H Preferred Stock in exchange for Series D Preferred Stock 17,950 89,748 — — Balance at End of Period 17,950 $ 89,748 — $ — |
Summary of Repurchases | The following table is a summary of the Company’s repurchase activity of its common stock during the three and nine months ended September 30, 2022: For the Three and Nine Months Ended September 30, 2022 Shares Amount (2) Authorized repurchase amount (1) — $ 65,000 Repurchases paid 774,653 (9,359) Repurchases unsettled (3) 156,400 (1,677) Remaining as of September 30, 2022 $ 53,964 _________________________________________________________ (1) Amount includes commissions paid associated with share repurchases . (2) For the period ended September 30, 2022, the average purchase price was $11.85 per share. |
Changes in Accumulated Other Comprehensive Income (Loss) | The following tables set forth the changes in accumulated other comprehensive income/(loss) by component. (dollars in thousands) Total Available for Sale Securities Cash Flow Hedges For the Three Months Ended September 30, 2022: Balance as of June 30, 2022 $ — $ — $ — Other comprehensive (loss) income (373) (373) — Balance as of September 30, 2022 $ (373) $ (373) $ — For the Three Months Ended September 30, 2021: Balance as of June 30, 2021 $ — $ — $ — Other comprehensive (loss) income — — — Balance as of September 30, 2021 $ — $ — $ — For the Nine Months Ended September 30, 2022: Balance as of December 31, 2021 $ (62) $ — $ (62) Other comprehensive (loss) income (593) (373) (220) Reclassification adjustment for amounts included in net income/(loss) 282 — 282 Balance as of September 30, 2022 $ (373) $ (373) $ — For the Nine Months Ended September 30, 2021: Balance as of December 31, 2020 $ (8,256) $ (8,256) $ — Other comprehensive (loss) income 8,256 8,256 — Balance as of September 30, 2021 $ — $ — $ — |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Unfunded commitments under commercial mortgage loans | As of September 30, 2022 and December 31, 2021, the Company had the below unfunded commitments to the Company's borrowers (dollars in thousands): Funding Expiration September 30, 2022 December 31, 2021 2022 $ 8,000 $ 25,864 2023 90,093 123,860 2024 359,735 271,056 2025 and beyond 74,755 37,325 $ 532,583 $ 458,105 |
Related Party Transactions an_2
Related Party Transactions and Arrangements (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Related Party Transactions [Abstract] | |
Schedule of amount contractually due and forgiven in connection with operation related services | The table below shows the costs incurred due to arrangements with our Advisor and its affiliates during the three and nine months ended September 30, 2022 and 2021 and the associated payable as of September 30, 2022 and December 31, 2021 (dollars in thousands): Three Months Ended September 30, Nine Months Ended September 30, Payable as of 2022 2021 2022 2021 September 30, 2022 December 31, 2021 Acquisition expenses (1) $ 362 $ 690 $ 996 $ 1,012 $ 373 $ — Administrative services expenses 3,001 2,980 9,402 9,532 3,001 — Asset management and subordinated performance fee 6,430 8,265 19,776 19,682 11,353 15,595 Other related party expenses (2)(3) 226 146 706 182 1,717 1,943 Total related party fees and reimbursements $ 10,019 $ 12,081 $ 30,880 $ 30,408 $ 16,444 $ 17,538 _________________________________________________________ (1) Total acquisition expenses paid during the three months ended September 30, 2022 and 2021 were $2.5 million and $2.9 million, respectively, of which $2.1 million and $2.2 million were capitalized within the commercial mortgage loans, held for investment and real estate securities, available for sale, measured at fair value lines of the consolidated balance sheets. Total acquisition expenses paid during the nine months ended September 30, 2022 and 2021 were $9.7 million and $7.5 million, respectively, of which $8.7 million and $6.5 million were capitalized within the commercial mortgage loans, held for investment and real estate securities, available for sale, measured at fair value lines of the consolidated balance sheets. (2) These are related to reimbursable costs incurred related to the increase in loan origination activities and are included in Other expenses in the Company's consolidated statements of operations. (3) As of September 30, 2022 and December 31, 2021, the related party payables include $1.7 million and $1.9 million of payments made by the Advisor to third party vendors on behalf of the Company. |
Share-based Compensation (Table
Share-based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Unvested Restricted Stock Units Roll Forward | Restricted Stock and RSU activity issued under the RSP and 2021 Incentive Plan for the nine months ended September 30, 2022 is summarized below: Shares Outstanding RSP 2021 Incentive Plan Weighted Average Grant Date Fair Value Unvested equity awards outstanding as of December 31, 2021 11,184 — $ 17.88 Grants 28,245 492,107 14.05 Forfeitures — — — Vested (18,393) — 16.14 Unvested equity awards outstanding as of September 30, 2022 21,036 492,107 $ 14.06 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Financial instruments carried at fair value on a recurring basis | The following table presents the Company's financial instruments carried at fair value on a recurring basis in the consolidated balance sheets by its level in the fair value hierarchy as of September 30, 2022 and December 31, 2021 (dollars in thousands): Total Level I Level II Level III September 30, 2022 Assets, at fair value Real estate securities, available for sale, measured at fair value $ 74,625 $ — $ 74,625 $ — Real estate securities, trading, measured at fair value 252,491 — $ 252,491 $ — Commercial mortgage loans, held for sale, measured at fair value 41,342 — — 41,342 Derivatives instruments, measured at fair value: Credit default swaps — — — — Interest rate swaps 3,546 — 3,546 — Total assets, at fair value $ 372,004 $ — $ 330,662 $ 41,342 Liabilities, at fair value Derivatives instruments, measured at fair value: Interest rate swaps $ 8 $ — $ 8 $ — Credit default swaps $ 4 $ — $ 4 $ — Total liabilities, at fair value $ 12 $ — $ 12 $ — December 31, 2021 Assets, at fair value Real estate securities, trading, measured at fair value $ 4,566,871 $ — $ 4,566,871 $ — Commercial mortgage loans, held for sale, measured at fair value 34,718 — — 34,718 Other real estate investments, measured at fair value 2,074 — — 2,074 Derivatives instruments, measured at fair value: Interest rate swaps 312 — 312 — Treasury note futures 124 — 124 — Total assets, at fair value $ 4,604,099 $ — $ 4,567,307 $ 36,792 Liabilities, at fair value Derivatives instruments, measured at fair value: Credit default swaps $ 1,142 $ — $ 1,142 $ — Unsecured debt-related interest rate swap agreements 31,153 — 31,153 — Total liabilities, at fair value $ 32,295 $ — $ 32,295 $ — September 30, 2022 Commercial Mortgage Loans, held for sale, measured at fair value Other Real Estate Investments, measured at fair value Beginning balance, January 1, 2022 $ 34,718 $ 2,074 Transfers into Level III (1) — — Total realized and unrealized gain/(loss) included in earnings: Realized gain/(loss) on sale of commercial mortgage loans, held for sale, and other real estate investments 4,838 (33) Unrealized gain/(loss) on commercial mortgage loans, held for sale and other real estate investments (3,678) 4 Net accretion — — Purchases 343,096 — Sales / paydowns (337,632) (2,045) Transfers out of Level III (1) — — Ending Balance, September 30, 2022 $ 41,342 $ — December 31, 2021 Commercial Mortgage Loans, held for sale, measured at fair value Other Real Estate Investments, measured at fair value Beginning balance, January 1, 2021 $ 67,649 $ 2,522 Transfers into Level III (1) — — Total realized and unrealized gain/(loss) included in earnings: Realized gain/(loss) on sale of commercial mortgage loans, held for sale 24,208 — Unrealized gain/(loss) on commercial mortgage loans, held for sale and other real estate investments 469 (19) Net accretion — (3) Purchases 420,673 — Sales / paydowns (478,281) (426) Transfers out of Level III (1) — — Ending Balance, December 31, 2021 $ 34,718 $ 2,074 ________________________________________________________ (1) Transfers in and transfers out include transfers between Commercial mortgage loans, held for sale and Commercial mortgage loans, held for investment. |
Fair value measurements, recurring and nonrecurring, valuation techniques | The following table contains the Level 3 inputs used to value assets and liabilities on a recurring and nonrecurring basis or where the Company discloses fair value as of September 30, 2022: Asset Category Fair Value Valuation Methodologies Unobservable Inputs (1) Weighted Average (2) Range September 30, 2022 Commercial mortgage loans, held for sale, measured at fair value $ 41,342 Discounted Cash Flow Yield 3.4% 3.1% - 7.3% December 31, 2021 Commercial mortgage loans, held for sale, measured at fair value $ 34,718 Discounted Cash Flow Yield 3.4% 3.2% - 4.2% Other real estate investments, measured at fair value 2,074 Discounted Cash Flow Yield 10.9% 9.9% - 11.9% ________________________________________________________ (1) In determining certain inputs, the Company evaluates a variety of factors including economic conditions, industry and market developments, market valuations of comparable companies and company specific developments including exit strategies and realization opportunities. The Company has determined that market participants would take these inputs into account when valuing the investments. (2) Inputs were weighted based on the fair value of the investments included in the range. |
Financial instruments not carried at fair value | The fair values of the Company's commercial mortgage loans, held for investment and collateralized loan obligations, which are not reported at fair value on the consolidated balance sheets are reported below as of September 30, 2022 and December 31, 2021 (dollars in thousands): September 30, 2022 December 31, 2021 Level Carrying Amount (1) Fair Value Carrying Amount (1) Fair Value Commercial mortgage loans, held for investment Asset III $ 5,328,273 $ 5,331,258 $ 4,226,888 $ 4,249,118 Collateralized loan obligations Liability III 3,174,530 3,097,531 2,162,190 2,181,571 Mortgage note payable Liability III 23,998 23,998 23,998 23,998 Other financing and loan participation - commercial mortgage loans Liability III 53,167 53,167 37,903 37,903 Unsecured debt Liability III 98,670 73,700 148,594 125,400 ________________________________________________________ (1) The carrying value is gross of $46.8 million and $15.8 million of allowance for credit losses as of September 30, 2022 and December 31, 2021, respectively. |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Assets at Fair Value | The following derivative instruments were outstanding as of September 30, 2022 and December 31, 2021 (dollars in thousands): September 30, 2022 December 31, 2021 Fair Value Fair Value Contract type Notional Assets Liabilities Notional Assets Liabilities Credit default swaps $ 44,750 $ 710 $ 4 $ 47,000 $ — $ 1,142 Interest rate swaps (1) 37,000 2,836 8 3,649,500 312 — Interest rate swaps on unsecured debt — — — 100,000 — 31,153 Treasury note futures — — — 360 124 — Total $ 81,750 $ 3,546 $ 12 $ 3,796,860 $ 436 $ 32,295 ________________________________________________________ |
Schedule of Derivative Liabilities at Fair Value | The following derivative instruments were outstanding as of September 30, 2022 and December 31, 2021 (dollars in thousands): September 30, 2022 December 31, 2021 Fair Value Fair Value Contract type Notional Assets Liabilities Notional Assets Liabilities Credit default swaps $ 44,750 $ 710 $ 4 $ 47,000 $ — $ 1,142 Interest rate swaps (1) 37,000 2,836 8 3,649,500 312 — Interest rate swaps on unsecured debt — — — 100,000 — 31,153 Treasury note futures — — — 360 124 — Total $ 81,750 $ 3,546 $ 12 $ 3,796,860 $ 436 $ 32,295 ________________________________________________________ |
Schedule of Derivative Instruments, Gain (Loss) | The following table indicates the net realized and unrealized gains and losses on derivatives, by primary underlying risk exposure, as included in loss on derivative instruments in the consolidated statements of operations for the three and nine months ended September 30, 2022 and September 30, 2021: Three Months Ended September 30, 2022 Three Months Ended September 30, 2021 Contract type Unrealized (Gain)/Loss Realized (Gain)/Loss Unrealized (Gain)/Loss Realized (Gain)/Loss Credit default swaps $ 40 $ 254 $ (111) $ 32 Interest rate swaps (1,606) 1,370 (1,282) 1,692 Treasury note futures — — (35) 145 Options — — — 33 Total $ (1,566) $ 1,624 $ (1,428) $ 1,902 Nine Months Ended September 30, 2022 Nine Months Ended September 30, 2021 Contract type Unrealized (Gain)/Loss Realized (Gain)/Loss Unrealized (Gain)/Loss Realized (Gain)/Loss Credit default swaps $ (515) $ 301 $ (289) $ 675 Interest rate swaps 13,215 (56,961) 22 414 Treasury note futures 124 (939) (107) (1,479) Options — — — 33 Total $ 12,824 $ (57,599) $ (374) $ (357) |
Offsetting Assets and Liabili_2
Offsetting Assets and Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Offsetting [Abstract] | |
Offsetting assets | The table below provides a gross presentation, the effects of offsetting and a net presentation of the Company's derivative instruments and repurchase agreements within the scope of ASC 210-20, Balance Sheet—Offsetting , as of September 30, 2022 and December 31, 2021 (dollars in thousands): Gross Amounts of Gross Amounts Offset on the Net Amount of Assets Presented on the Gross Amounts Not Offset on the Balance Sheet Assets Recognized Assets Balance Sheet Balance Sheet Financial Instruments Cash Collateral (1) Net Amount September 30, 2022 Derivative instruments, at fair value $ 3,546 $ — $ 3,546 $ — $ — $ 3,546 December 31, 2021 Derivative instruments, at fair value $ 436 $ — $ 436 $ — $ — $ 436 |
Offsetting liabilities | Gross Amounts of Gross Amounts Offset on the Net Amount of Liabilities Presented on the Gross Amounts Not Offset on the Balance Sheet Liabilities Recognized Liabilities Balance Sheet Balance Sheet Financial Instruments Cash Collateral (1) Net Amount September 30, 2022 Repurchase agreements - commercial mortgage loans $ 699,408 $ — $ 699,408 $ 707,900 $ 5,010 $ — Repurchase agreements - real estate securities 337,613 — 337,613 373,363 — — Derivative instruments, at fair value 12 — 12 — 68 — December 31, 2021 Repurchase agreements - commercial mortgage loans $ 1,019,600 $ — $ 1,019,600 $ 1,460,317 $ 5,015 $ — Repurchase agreements - real estate securities 4,178,784 — 4,178,784 4,370,239 — — Derivative instruments, at fair value 32,295 — 32,295 — 64,393 — _________________________________________________________ (1) Included in Restricted cash in the Company's consolidated balance sheets. |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
Schedule of segment reporting information, by segment | The following table represents the Company's operations by segment for the three and nine months ended September 30, 2022 and September 30, 2021 (dollars in thousands): Three Months Ended September 30, 2022 Total Real Estate Debt and Other Real Estate Investments Real Estate Securities TRS Real Estate Owned Interest income $ 94,131 $ 91,097 $ 1,648 $ 1,386 $ — Revenue from real estate owned 2,312 — — — 2,312 Interest expense 46,157 43,260 1,779 786 332 Net income/(loss) 35,258 35,778 (3,309) 2,107 682 Total assets as of September 30, 2022 6,178,121 5,551,679 398,684 87,825 139,933 Three Months Ended September 30, 2021 Interest income $ 47,747 $ 47,166 $ — $ 581 $ — Revenue from real estate owned 1,015 — — — 1,015 Interest expense 11,988 11,263 148 232 345 Net income/(loss) 38,495 25,056 (148) 3,984 9,603 Total assets as of December 31, 2021 9,474,701 4,205,883 5,054,394 72,840 141,584 Nine Months Ended September 30, 2022 Total Real Estate Debt and Other Real Estate Investments Real Estate Securities TRS Real Estate Owned Interest income $ 239,602 $ 209,585 $ 25,424 $ 4,593 $ — Revenue from real estate owned 6,936 — — — 6,936 Interest expense 101,444 92,704 6,853 1,123 764 Net income/(loss) (12,958) 46,306 (63,533) 1,995 2,274 Total assets as of September 30, 2022 6,178,121 5,551,679 398,684 87,825 139,933 Nine Months Ended September 30, 2021 Interest income $ 138,969 $ 135,945 $ 461 $ 2,563 $ — Revenue from real estate owned 2,447 — — — 2,447 Interest expense 35,994 34,887 (720) 812 1,014 Net income/(loss) 98,651 74,745 (196) 13,434 10,667 Total assets as of December 31, 2021 9,474,701 4,205,883 5,054,394 72,840 141,584 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||
Oct. 20, 2022 $ / shares shares | Oct. 19, 2022 shares | Jun. 24, 2022 shares | Apr. 19, 2022 shares | Sep. 30, 2022 USD ($) $ / shares shares | Sep. 30, 2021 USD ($) shares | Sep. 30, 2022 USD ($) segment $ / shares shares | Sep. 30, 2021 USD ($) shares | Dec. 31, 2021 $ / shares shares | Dec. 31, 2020 shares | |
Equity, Class of Treasury Stock [Line Items] | ||||||||||
Minimum distribution percentage to qualify for REIT taxation status | 90% | |||||||||
Income tax expense (benefit) | $ | $ 419 | $ 1,148 | $ 281 | $ 3,418 | ||||||
Number of reportable segments | segment | 4 | |||||||||
RSP | ||||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||||
Shares granted under restricted share plan, maximum percentage of total shares allowed (in shares) | 5% | |||||||||
Maximum shares allowed to be granted under restricted share plan (in shares) | 4,000,000 | |||||||||
Restricted Stock Units (RSUs) | 2021 Incentive Plan | ||||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||||
Award vesting period | 3 years | |||||||||
Series C Preferred Stock | ||||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||||
Liquidation preference (in dollars per share) | $ / shares | $ 5,000 | $ 5,000 | ||||||||
Rate of dividend accrual (in percent) | 4% | |||||||||
Preferred stock, par value per share (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | |||||||
Percentage of holders of preferred stock | 66.67% | 66.67% | ||||||||
Preferred stock, shares outstanding (in shares) | 1,400 | 1,400 | 1,400 | 1,400 | 1,400 | 1,400 | ||||
Series C Preferred Stock | Subsequent Event | ||||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||||
Automatically converted into common stock (in shares) | (400) | |||||||||
Preferred stock converted to common stock, per share stock consideration (in shares) | 299.2 | |||||||||
Preferred stock exchanged (in shares) | (1,000) | |||||||||
Series E Preferred Stock | ||||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||||
Preferred stock rate, as a percentage | 7.50% | 7.50% | ||||||||
Liquidation preference (in dollars per share) | $ / shares | $ 25 | $ 25 | ||||||||
Preferred stock, par value per share (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | |||||||
Preferred stock, shares outstanding (in shares) | 10,329,039 | 0 | 10,329,039 | 0 | 10,329,039 | 0 | ||||
Preferred stock, liquidation preference per share, per annum (in dollars per share) | $ / shares | $ 1.875 | $ 1.875 | ||||||||
Series F Preferred Stock | ||||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||||
Automatically converted into common stock (in shares) | 39,733,299 | 39,733,299 | 0 | |||||||
Preferred stock, par value per share (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | |||||||
Percentage of holders of preferred stock | 66.67% | 66.67% | ||||||||
Conversion ratio of convertible preferred stock (in shares) | 1 | |||||||||
Preferred stock, shares outstanding (in shares) | 0 | 0 | 0 | 0 | 0 | 39,733,299 | 0 | |||
Series H Preferred Stock | ||||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||||
Preferred stock exchanged (in shares) | 17,950 | 17,950 | 0 | |||||||
Preferred stock, par value per share (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | |||||||
Option to accelerate mandatory conversion date, period of required written notice | 10 days | |||||||||
Preferred stock, shares outstanding (in shares) | 17,950 | 0 | 17,950 | 0 | 0 | 0 | ||||
Series I Preferred Stock | Subsequent Event | ||||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||||
Preferred stock, par value per share (in dollars per share) | $ / shares | $ 0.01 | |||||||||
Minimum | Series E Preferred Stock | ||||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||||
Preferred stock, redemption of stock, notice period | 30 days | |||||||||
Maximum | Series E Preferred Stock | ||||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||||
Preferred stock, redemption of stock, notice period | 60 days | |||||||||
Buildings | ||||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||||
Useful lives of property, plant, and equipment (up to) | 40 years | |||||||||
Furniture, fixtures, and equipment | ||||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||||
Useful lives of property, plant, and equipment (up to) | 15 years | |||||||||
Site Improvements | Minimum | ||||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||||
Useful lives of property, plant, and equipment (up to) | 5 years | |||||||||
Site Improvements | Maximum | ||||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||||
Useful lives of property, plant, and equipment (up to) | 25 years |
Commercial Mortgage Loans - Loa
Commercial Mortgage Loans - Loans Receivable by Class (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total amortized cost of loans | $ 5,328,273 | $ 4,226,888 |
Less: Allowance for credit losses | 46,815 | 15,827 |
Total commercial mortgage loans, held for investment, net | 5,281,458 | 4,211,061 |
General allowance for credit losses | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Less: Allowance for credit losses | 19,195 | 15,827 |
Specific allowance for credit losses | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Less: Allowance for credit losses | 27,620 | 0 |
Senior loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total amortized cost of loans | 5,311,315 | 4,204,464 |
Mezzanine loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total amortized cost of loans | $ 16,958 | $ 22,424 |
Commercial Mortgage Loans - Nar
Commercial Mortgage Loans - Narrative (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Sep. 30, 2022 USD ($) | Jun. 30, 2022 USD ($) | Mar. 31, 2022 USD ($) | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) rating loan property | Sep. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) rating loan | Dec. 31, 2020 USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Provision/(benefit) for credit losses | $ (599) | $ (1,613) | $ 30,976 | $ (5,452) | ||||
Par Value | 5,328,273 | $ 5,328,273 | $ 4,226,888 | |||||
Initial risk rating | rating | 2 | |||||||
Weighted average risk rating of loans | rating | 2.1 | 2.1 | ||||||
Commercial Portfolio Segment | General allowance for credit losses | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Provision/(benefit) for credit losses | 601 | $ 3,661 | $ (894) | $ 3,400 | ||||
Commercial Portfolio Segment | General allowance for credit losses | Retail | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Provision/(benefit) for credit losses | (25) | (128) | 234 | |||||
Commercial Portfolio Segment | General allowance for credit losses | Hospitality | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Provision/(benefit) for credit losses | 793 | (687) | $ (807) | |||||
Commercial Portfolio Segment | Specific allowance for credit losses | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Provision/(benefit) for credit losses | (811) | 28,431 | ||||||
Commercial Portfolio Segment | Specific allowance for credit losses | Retail | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Provision/(benefit) for credit losses | (811) | 28,431 | ||||||
Number of properties securing loan | property | 24 | |||||||
Commercial Portfolio Segment | Specific allowance for credit losses | Hospitality | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Provision/(benefit) for credit losses | 0 | $ 0 | ||||||
Commercial Portfolio Segment | Nonperforming Financial Instruments | Specific allowance for credit losses | Retail | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Provision/(benefit) for credit losses | $ 27,600 | |||||||
Commercial Mortgage Receivable, Held-For-Investment | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Number of loans | loan | 166 | 165 | ||||||
Par Value | 5,350,728 | $ 5,350,728 | $ 4,242,962 | |||||
Cost recovery | 2,406 | 0 | ||||||
Commercial Mortgage Receivable, Held-For-Investment | Retail | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Par Value | 172,503 | 172,503 | 104,990 | |||||
Commercial Mortgage Receivable, Held-For-Investment | Hospitality | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Par Value | 503,251 | 503,251 | 460,884 | |||||
Commercial Mortgage Receivable, Held-For-Investment | General allowance for credit losses | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Provision/(benefit) for credit losses | 3,368 | (4,770) | ||||||
Commercial Mortgage Receivable, Held-For-Investment | Specific allowance for credit losses | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Provision/(benefit) for credit losses | 27,620 | 0 | ||||||
Commercial Mortgage Receivable, Held-For-Investment | Commercial Portfolio Segment | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Par Value | 5,328,273 | 5,328,273 | 4,226,888 | |||||
Commercial Mortgage Receivable, Held-For-Investment | Commercial Portfolio Segment | Retail | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Par Value | 168,512 | 168,512 | 104,725 | |||||
Commercial Mortgage Receivable, Held-For-Investment | Commercial Portfolio Segment | Retail | 5 internal grade | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Par Value | 105,498 | 105,498 | ||||||
Commercial Mortgage Receivable, Held-For-Investment | Commercial Portfolio Segment | Retail | 5 internal grade | Discounted Cash Flow | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Amortized cost | $ 77,900 | $ 77,900 | ||||||
Commercial Mortgage Receivable, Held-For-Investment | Commercial Portfolio Segment | Retail | 5 internal grade | Discounted Cash Flow | Minimum | Measurement Input, Cap Rate | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Measurement input | 0.0475 | 0.0475 | ||||||
Commercial Mortgage Receivable, Held-For-Investment | Commercial Portfolio Segment | Retail | 5 internal grade | Discounted Cash Flow | Maximum | Measurement Input, Cap Rate | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Measurement input | 0.0650 | 0.0650 | ||||||
Commercial Mortgage Receivable, Held-For-Investment | Commercial Portfolio Segment | Hospitality | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Par Value | $ 501,791 | $ 501,791 | $ 459,859 | |||||
Commercial Mortgage Receivable, Held-For-Investment | Commercial Portfolio Segment | Nonperforming Financial Instruments | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Number of loans | loan | 2 | 1 | ||||||
Nonaccrual loan | 162,573 | $ 162,573 | $ 57,075 | $ 94,887 | ||||
Commercial Mortgage Receivable, Held-For-Investment | Commercial Portfolio Segment | Nonperforming Financial Instruments | Retail | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Cost recovery | 6,400 | |||||||
Commercial Mortgage Receivable, Held-For-Investment | Commercial Portfolio Segment | Nonperforming Financial Instruments | Retail | 5 internal grade | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Fully funded outstanding principal balance | 109,200 | 109,200 | ||||||
Commercial Mortgage Receivable, Held-For-Investment | Commercial Portfolio Segment | Nonperforming Financial Instruments | Hospitality | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Nonaccrual loan | 57,100 | 57,100 | ||||||
Interest income | 0 | 0 | ||||||
Commercial Mortgage Receivable, Held-For-Investment | Commercial Portfolio Segment | Nonperforming Financial Instruments | Specific allowance for credit losses | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Provision/(benefit) for credit losses | $ 0 | |||||||
Commercial Mortgage Receivable, Held-For-Investment | Commercial Portfolio Segment | Nonperforming Financial Instruments | Specific allowance for credit losses | Hospitality | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Provision/(benefit) for credit losses | $ 0 | |||||||
Commercial Mortgage Receivable, Held-For-Sale | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Number of loans | loan | 3 | 1 | ||||||
Par Value | 44,546 | $ 44,546 | $ 34,250 | |||||
Commercial Mortgage Receivable, Held-For-Sale | Retail | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Par Value | 25,000 | 25,000 | 0 | |||||
Commercial Mortgage Receivable, Held-For-Sale | Hospitality | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Par Value | $ 19,546 | $ 19,546 | $ 0 |
Commercial Mortgage Loans - All
Commercial Mortgage Loans - Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||||
Beginning balance | $ 15,827 | $ 15,827 | ||||
Provision/(benefit) for credit losses | $ (599) | $ (1,613) | 30,976 | $ (5,452) | ||
Ending balance | 46,815 | 46,815 | ||||
General provision/(benefit) for credit losses | ||||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||||
Beginning balance | 15,827 | 15,827 | ||||
Ending balance | 19,195 | 19,195 | ||||
Specific provision/(benefit) for credit losses | ||||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||||
Beginning balance | 0 | 0 | ||||
Ending balance | 27,620 | 27,620 | ||||
Commercial Portfolio Segment | ||||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||||
Beginning balance | 47,025 | $ 14,933 | 15,827 | 15,827 | ||
Ending balance | 46,815 | 47,025 | 14,933 | 46,815 | ||
Commercial Portfolio Segment | General provision/(benefit) for credit losses | ||||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||||
Provision/(benefit) for credit losses | 601 | 3,661 | (894) | 3,400 | ||
Commercial Portfolio Segment | Specific provision/(benefit) for credit losses | ||||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||||
Provision/(benefit) for credit losses | (811) | 28,431 | ||||
Commercial Portfolio Segment | Unfunded Loan Commitment | ||||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||||
Beginning balance | 620 | 182 | 243 | 243 | ||
Ending balance | 231 | 620 | 182 | 231 | ||
Commercial Portfolio Segment | Unfunded Loan Commitment | General provision/(benefit) for credit losses | ||||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||||
Provision/(benefit) for credit losses | (389) | 438 | (61) | |||
Commercial Portfolio Segment | Multifamily | ||||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||||
Beginning balance | 14,308 | 9,713 | 9,681 | 9,681 | ||
Ending balance | 14,267 | 14,308 | 9,713 | 14,267 | ||
Commercial Portfolio Segment | Multifamily | General provision/(benefit) for credit losses | ||||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||||
Provision/(benefit) for credit losses | (41) | 4,595 | 32 | |||
Commercial Portfolio Segment | Multifamily | Specific provision/(benefit) for credit losses | ||||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||||
Provision/(benefit) for credit losses | 0 | 0 | ||||
Commercial Portfolio Segment | Multifamily | Unfunded Loan Commitment | ||||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||||
Beginning balance | 548 | 105 | 137 | 137 | ||
Ending balance | 145 | 548 | 105 | 145 | ||
Commercial Portfolio Segment | Multifamily | Unfunded Loan Commitment | General provision/(benefit) for credit losses | ||||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||||
Provision/(benefit) for credit losses | (403) | 443 | (32) | |||
Commercial Portfolio Segment | Retail | ||||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||||
Beginning balance | 28,825 | 522 | 288 | 288 | ||
Ending balance | 27,989 | 28,825 | 522 | 27,989 | ||
Commercial Portfolio Segment | Retail | General provision/(benefit) for credit losses | ||||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||||
Provision/(benefit) for credit losses | (25) | (128) | 234 | |||
Commercial Portfolio Segment | Retail | Specific provision/(benefit) for credit losses | ||||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||||
Provision/(benefit) for credit losses | (811) | 28,431 | ||||
Commercial Portfolio Segment | Retail | Unfunded Loan Commitment | ||||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||||
Beginning balance | 15 | 16 | 1 | 1 | ||
Ending balance | 15 | 15 | 16 | 15 | ||
Commercial Portfolio Segment | Retail | Unfunded Loan Commitment | General provision/(benefit) for credit losses | ||||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||||
Provision/(benefit) for credit losses | 0 | (1) | 15 | |||
Commercial Portfolio Segment | Office | ||||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||||
Beginning balance | 625 | 673 | 776 | 776 | ||
Ending balance | 444 | 625 | 673 | 444 | ||
Commercial Portfolio Segment | Office | General provision/(benefit) for credit losses | ||||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||||
Provision/(benefit) for credit losses | (181) | (48) | (103) | |||
Commercial Portfolio Segment | Office | Specific provision/(benefit) for credit losses | ||||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||||
Provision/(benefit) for credit losses | 0 | 0 | ||||
Commercial Portfolio Segment | Office | Unfunded Loan Commitment | ||||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||||
Beginning balance | 10 | 9 | 13 | 13 | ||
Ending balance | 9 | 10 | 9 | 9 | ||
Commercial Portfolio Segment | Office | Unfunded Loan Commitment | General provision/(benefit) for credit losses | ||||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||||
Provision/(benefit) for credit losses | (1) | 1 | (4) | |||
Commercial Portfolio Segment | Industrial | ||||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||||
Beginning balance | 83 | 101 | 86 | 86 | ||
Ending balance | 132 | 83 | 101 | 132 | ||
Commercial Portfolio Segment | Industrial | General provision/(benefit) for credit losses | ||||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||||
Provision/(benefit) for credit losses | 49 | (18) | 15 | |||
Commercial Portfolio Segment | Industrial | Specific provision/(benefit) for credit losses | ||||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||||
Provision/(benefit) for credit losses | 0 | 0 | ||||
Commercial Portfolio Segment | Industrial | Unfunded Loan Commitment | ||||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||||
Beginning balance | 0 | 1 | 3 | 3 | ||
Ending balance | 2 | 0 | 1 | 2 | ||
Commercial Portfolio Segment | Industrial | Unfunded Loan Commitment | General provision/(benefit) for credit losses | ||||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||||
Provision/(benefit) for credit losses | 2 | (1) | (2) | |||
Commercial Portfolio Segment | Mixed Use | ||||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||||
Beginning balance | 39 | 61 | 169 | 169 | ||
Ending balance | 45 | 39 | 61 | 45 | ||
Commercial Portfolio Segment | Mixed Use | General provision/(benefit) for credit losses | ||||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||||
Provision/(benefit) for credit losses | 6 | (22) | (108) | |||
Commercial Portfolio Segment | Mixed Use | Specific provision/(benefit) for credit losses | ||||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||||
Provision/(benefit) for credit losses | 0 | 0 | ||||
Commercial Portfolio Segment | Mixed Use | Unfunded Loan Commitment | ||||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||||
Beginning balance | 0 | 0 | 10 | 10 | ||
Ending balance | 0 | 0 | 0 | 0 | ||
Commercial Portfolio Segment | Mixed Use | Unfunded Loan Commitment | General provision/(benefit) for credit losses | ||||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||||
Provision/(benefit) for credit losses | 0 | 0 | (10) | |||
Commercial Portfolio Segment | Hospitality | ||||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||||
Beginning balance | 3,103 | 3,790 | 4,597 | 4,597 | ||
Ending balance | 3,896 | 3,103 | 3,790 | 3,896 | ||
Commercial Portfolio Segment | Hospitality | General provision/(benefit) for credit losses | ||||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||||
Provision/(benefit) for credit losses | 793 | (687) | (807) | |||
Commercial Portfolio Segment | Hospitality | Specific provision/(benefit) for credit losses | ||||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||||
Provision/(benefit) for credit losses | 0 | 0 | ||||
Commercial Portfolio Segment | Hospitality | Unfunded Loan Commitment | ||||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||||
Beginning balance | 47 | 51 | 79 | 79 | ||
Ending balance | 58 | 47 | 51 | 58 | ||
Commercial Portfolio Segment | Hospitality | Unfunded Loan Commitment | General provision/(benefit) for credit losses | ||||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||||
Provision/(benefit) for credit losses | 11 | (4) | (28) | |||
Commercial Portfolio Segment | Self Storage | ||||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||||
Beginning balance | 19 | 42 | 152 | 152 | ||
Ending balance | 6 | 19 | 42 | 6 | ||
Commercial Portfolio Segment | Self Storage | General provision/(benefit) for credit losses | ||||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||||
Provision/(benefit) for credit losses | (13) | (23) | (110) | |||
Commercial Portfolio Segment | Self Storage | Specific provision/(benefit) for credit losses | ||||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||||
Provision/(benefit) for credit losses | 0 | 0 | ||||
Commercial Portfolio Segment | Self Storage | Unfunded Loan Commitment | ||||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||||
Beginning balance | 0 | 0 | 0 | 0 | ||
Ending balance | 0 | 0 | 0 | 0 | ||
Commercial Portfolio Segment | Self Storage | Unfunded Loan Commitment | General provision/(benefit) for credit losses | ||||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||||
Provision/(benefit) for credit losses | 0 | 0 | 0 | |||
Commercial Portfolio Segment | Manufactured Housing | ||||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||||
Beginning balance | 23 | 31 | 78 | 78 | ||
Ending balance | 36 | 23 | 31 | 36 | ||
Commercial Portfolio Segment | Manufactured Housing | General provision/(benefit) for credit losses | ||||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||||
Provision/(benefit) for credit losses | 13 | (8) | (47) | |||
Commercial Portfolio Segment | Manufactured Housing | Specific provision/(benefit) for credit losses | ||||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||||
Provision/(benefit) for credit losses | 0 | 0 | ||||
Commercial Portfolio Segment | Manufactured Housing | Unfunded Loan Commitment | ||||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||||
Beginning balance | 0 | 0 | 0 | 0 | ||
Ending balance | 2 | 0 | 0 | $ 2 | ||
Commercial Portfolio Segment | Manufactured Housing | Unfunded Loan Commitment | General provision/(benefit) for credit losses | ||||||
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward] | ||||||
Provision/(benefit) for credit losses | $ 2 | $ 0 | $ 0 |
Commercial Mortgage Loans - Com
Commercial Mortgage Loans - Commercial Mortgage Loan Portfolio, Excluding Fair Value (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Par Value | $ 5,328,273 | $ 4,226,888 |
Commercial Mortgage Receivable, Held-For-Investment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Par Value | $ 5,350,728 | $ 4,242,962 |
Commercial Mortgage Receivable, Held-For-Investment | Customer Concentration Risk | Commercial Mortgage Loans, held for sale, measured at fair value | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percentage | 100% | 100% |
Commercial Mortgage Receivable, Held-For-Investment | Geographic Concentration Risk | Commercial Mortgage Loans, held for sale, measured at fair value | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percentage | 100% | 100% |
Commercial Mortgage Receivable, Held-For-Investment | Southeast | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Par Value | $ 2,158,660 | $ 1,106,439 |
Commercial Mortgage Receivable, Held-For-Investment | Southeast | Geographic Concentration Risk | Commercial Mortgage Loans, held for sale, measured at fair value | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percentage | 40.40% | 26.20% |
Commercial Mortgage Receivable, Held-For-Investment | Southwest | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Par Value | $ 1,757,121 | $ 1,764,905 |
Commercial Mortgage Receivable, Held-For-Investment | Southwest | Geographic Concentration Risk | Commercial Mortgage Loans, held for sale, measured at fair value | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percentage | 32.90% | 41.60% |
Commercial Mortgage Receivable, Held-For-Investment | Mideast | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Par Value | $ 781,379 | $ 646,125 |
Commercial Mortgage Receivable, Held-For-Investment | Mideast | Geographic Concentration Risk | Commercial Mortgage Loans, held for sale, measured at fair value | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percentage | 14.60% | 15.20% |
Commercial Mortgage Receivable, Held-For-Investment | Far West | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Par Value | $ 232,734 | $ 301,040 |
Commercial Mortgage Receivable, Held-For-Investment | Far West | Geographic Concentration Risk | Commercial Mortgage Loans, held for sale, measured at fair value | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percentage | 4.30% | 7.10% |
Commercial Mortgage Receivable, Held-For-Investment | Great Lakes | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Par Value | $ 169,191 | $ 183,930 |
Commercial Mortgage Receivable, Held-For-Investment | Great Lakes | Geographic Concentration Risk | Commercial Mortgage Loans, held for sale, measured at fair value | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percentage | 3.20% | 4.30% |
Commercial Mortgage Receivable, Held-For-Investment | Various | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Par Value | $ 109,230 | $ 68,896 |
Commercial Mortgage Receivable, Held-For-Investment | Various | Geographic Concentration Risk | Commercial Mortgage Loans, held for sale, measured at fair value | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percentage | 2% | 1.60% |
Commercial Mortgage Receivable, Held-For-Investment | New England | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Par Value | $ 66,065 | $ 67,651 |
Commercial Mortgage Receivable, Held-For-Investment | New England | Geographic Concentration Risk | Commercial Mortgage Loans, held for sale, measured at fair value | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percentage | 1.20% | 1.60% |
Commercial Mortgage Receivable, Held-For-Investment | Rocky Mountain | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Par Value | $ 43,751 | $ 43,751 |
Commercial Mortgage Receivable, Held-For-Investment | Rocky Mountain | Geographic Concentration Risk | Commercial Mortgage Loans, held for sale, measured at fair value | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percentage | 0.80% | 1% |
Commercial Mortgage Receivable, Held-For-Investment | Plains | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Par Value | $ 32,597 | $ 60,225 |
Commercial Mortgage Receivable, Held-For-Investment | Plains | Geographic Concentration Risk | Commercial Mortgage Loans, held for sale, measured at fair value | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percentage | 0.60% | 1.40% |
Commercial Mortgage Receivable, Held-For-Investment | Multifamily | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Par Value | $ 3,992,990 | $ 2,953,938 |
Commercial Mortgage Receivable, Held-For-Investment | Multifamily | Customer Concentration Risk | Commercial Mortgage Loans, held for sale, measured at fair value | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percentage | 74.70% | 69.60% |
Commercial Mortgage Receivable, Held-For-Investment | Hospitality | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Par Value | $ 503,251 | $ 460,884 |
Commercial Mortgage Receivable, Held-For-Investment | Hospitality | Customer Concentration Risk | Commercial Mortgage Loans, held for sale, measured at fair value | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percentage | 9.40% | 10.90% |
Commercial Mortgage Receivable, Held-For-Investment | Office | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Par Value | $ 456,866 | $ 485,575 |
Commercial Mortgage Receivable, Held-For-Investment | Office | Customer Concentration Risk | Commercial Mortgage Loans, held for sale, measured at fair value | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percentage | 8.60% | 11.40% |
Commercial Mortgage Receivable, Held-For-Investment | Retail | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Par Value | $ 172,503 | $ 104,990 |
Commercial Mortgage Receivable, Held-For-Investment | Retail | Customer Concentration Risk | Commercial Mortgage Loans, held for sale, measured at fair value | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percentage | 3.20% | 2.50% |
Commercial Mortgage Receivable, Held-For-Investment | Industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Par Value | $ 93,035 | $ 88,956 |
Commercial Mortgage Receivable, Held-For-Investment | Industrial | Customer Concentration Risk | Commercial Mortgage Loans, held for sale, measured at fair value | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percentage | 1.70% | 2.10% |
Commercial Mortgage Receivable, Held-For-Investment | Mixed Use | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Par Value | $ 52,500 | $ 62,965 |
Commercial Mortgage Receivable, Held-For-Investment | Mixed Use | Customer Concentration Risk | Commercial Mortgage Loans, held for sale, measured at fair value | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percentage | 1% | 1.50% |
Commercial Mortgage Receivable, Held-For-Investment | Self Storage | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Par Value | $ 44,895 | $ 56,495 |
Commercial Mortgage Receivable, Held-For-Investment | Self Storage | Customer Concentration Risk | Commercial Mortgage Loans, held for sale, measured at fair value | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percentage | 0.80% | 1.30% |
Commercial Mortgage Receivable, Held-For-Investment | Manufactured Housing | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Par Value | $ 34,688 | $ 29,159 |
Commercial Mortgage Receivable, Held-For-Investment | Manufactured Housing | Customer Concentration Risk | Commercial Mortgage Loans, held for sale, measured at fair value | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percentage | 0.60% | 0.70% |
Commercial Mortgage Receivable, Held-For-Sale | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Par Value | $ 44,546 | $ 34,250 |
Commercial Mortgage Receivable, Held-For-Sale | Customer Concentration Risk | Commercial Mortgage Loans, held for sale, measured at fair value | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percentage | 100% | 100% |
Commercial Mortgage Receivable, Held-For-Sale | Geographic Concentration Risk | Commercial Mortgage Loans, held for sale, measured at fair value | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percentage | 100% | 100% |
Commercial Mortgage Receivable, Held-For-Sale | Southeast | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Par Value | $ 37,996 | $ 34,250 |
Commercial Mortgage Receivable, Held-For-Sale | Southeast | Geographic Concentration Risk | Commercial Mortgage Loans, held for sale, measured at fair value | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percentage | 85.30% | 100% |
Commercial Mortgage Receivable, Held-For-Sale | Mideast | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Par Value | $ 6,550 | $ 0 |
Commercial Mortgage Receivable, Held-For-Sale | Mideast | Geographic Concentration Risk | Commercial Mortgage Loans, held for sale, measured at fair value | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percentage | 14.70% | 0% |
Commercial Mortgage Receivable, Held-For-Sale | Hospitality | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Par Value | $ 19,546 | $ 0 |
Commercial Mortgage Receivable, Held-For-Sale | Hospitality | Customer Concentration Risk | Commercial Mortgage Loans, held for sale, measured at fair value | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percentage | 43.90% | 0% |
Commercial Mortgage Receivable, Held-For-Sale | Office | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Par Value | $ 0 | $ 34,250 |
Commercial Mortgage Receivable, Held-For-Sale | Office | Customer Concentration Risk | Commercial Mortgage Loans, held for sale, measured at fair value | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percentage | 0% | 100% |
Commercial Mortgage Receivable, Held-For-Sale | Retail | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Par Value | $ 25,000 | $ 0 |
Commercial Mortgage Receivable, Held-For-Sale | Retail | Customer Concentration Risk | Commercial Mortgage Loans, held for sale, measured at fair value | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percentage | 56.10% | 0% |
Commercial Mortgage Loans - Int
Commercial Mortgage Loans - Internal Credit Qualities (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | $ 5,328,273 | $ 4,226,888 |
Commercial Mortgage Receivable, Held-For-Investment | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 5,350,728 | 4,242,962 |
Commercial Mortgage Receivable, Held-For-Investment | Multifamily | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 3,992,990 | 2,953,938 |
Commercial Mortgage Receivable, Held-For-Investment | Retail | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 172,503 | 104,990 |
Commercial Mortgage Receivable, Held-For-Investment | Office | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 456,866 | 485,575 |
Commercial Mortgage Receivable, Held-For-Investment | Industrial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 93,035 | 88,956 |
Commercial Mortgage Receivable, Held-For-Investment | Mixed Use | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 52,500 | 62,965 |
Commercial Mortgage Receivable, Held-For-Investment | Hospitality | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 503,251 | 460,884 |
Commercial Mortgage Receivable, Held-For-Investment | Self Storage | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 44,895 | 56,495 |
Commercial Mortgage Receivable, Held-For-Investment | Manufactured Housing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 34,688 | 29,159 |
Commercial Portfolio Segment | Commercial Mortgage Receivable, Held-For-Investment | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year one, originated in current fiscal year | 1,767,125 | 2,729,537 |
Year two, originated in prior fiscal year one | 2,665,468 | 689,545 |
Year three, originated in prior fiscal year two | 433,029 | 475,252 |
Year four, originated in prior fiscal year three | 254,929 | 253,452 |
Year five, original in prior fiscal year four | 128,794 | 79,102 |
Year six, originated in prior fiscal year five | 78,928 | |
Total | 5,328,273 | 4,226,888 |
Commercial Portfolio Segment | Commercial Mortgage Receivable, Held-For-Investment | Multifamily | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year one, originated in current fiscal year | 1,402,934 | 2,438,376 |
Year two, originated in prior fiscal year one | 2,371,872 | 270,953 |
Year three, originated in prior fiscal year two | 103,681 | 103,989 |
Year four, originated in prior fiscal year three | 24,058 | 127,902 |
Year five, original in prior fiscal year four | 74,876 | 0 |
Year six, originated in prior fiscal year five | 0 | |
Total | 3,977,421 | 2,941,220 |
Commercial Portfolio Segment | Commercial Mortgage Receivable, Held-For-Investment | Retail | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year one, originated in current fiscal year | 126,439 | 33,830 |
Year two, originated in prior fiscal year one | 33,870 | 11,928 |
Year three, originated in prior fiscal year two | 0 | 29,515 |
Year four, originated in prior fiscal year three | 8,203 | 29,452 |
Year five, original in prior fiscal year four | 0 | 0 |
Year six, originated in prior fiscal year five | 0 | |
Total | 168,512 | 104,725 |
Commercial Portfolio Segment | Commercial Mortgage Receivable, Held-For-Investment | Office | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year one, originated in current fiscal year | 0 | 50,291 |
Year two, originated in prior fiscal year one | 50,343 | 253,759 |
Year three, originated in prior fiscal year two | 240,183 | 136,800 |
Year four, originated in prior fiscal year three | 133,888 | 43,308 |
Year five, original in prior fiscal year four | 31,723 | 0 |
Year six, originated in prior fiscal year five | 0 | |
Total | 456,137 | 484,158 |
Commercial Portfolio Segment | Commercial Mortgage Receivable, Held-For-Investment | Industrial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year one, originated in current fiscal year | 77,712 | 0 |
Year two, originated in prior fiscal year one | 0 | 31,906 |
Year three, originated in prior fiscal year two | 14,946 | 56,933 |
Year four, originated in prior fiscal year three | 0 | 0 |
Year five, original in prior fiscal year four | 0 | 0 |
Year six, originated in prior fiscal year five | 0 | |
Total | 92,658 | 88,839 |
Commercial Portfolio Segment | Commercial Mortgage Receivable, Held-For-Investment | Mixed Use | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year one, originated in current fiscal year | 19,926 | 32,395 |
Year two, originated in prior fiscal year one | 32,446 | 30,325 |
Year three, originated in prior fiscal year two | 0 | 0 |
Year four, originated in prior fiscal year three | 0 | 0 |
Year five, original in prior fiscal year four | 0 | 0 |
Year six, originated in prior fiscal year five | 0 | |
Total | 52,372 | 62,720 |
Commercial Portfolio Segment | Commercial Mortgage Receivable, Held-For-Investment | Hospitality | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year one, originated in current fiscal year | 129,645 | 153,032 |
Year two, originated in prior fiscal year one | 155,287 | 26,920 |
Year three, originated in prior fiscal year two | 26,956 | 148,015 |
Year four, originated in prior fiscal year three | 88,780 | 52,790 |
Year five, original in prior fiscal year four | 22,195 | 79,102 |
Year six, originated in prior fiscal year five | 78,928 | |
Total | 501,791 | 459,859 |
Commercial Portfolio Segment | Commercial Mortgage Receivable, Held-For-Investment | Self Storage | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year one, originated in current fiscal year | 0 | 14,948 |
Year two, originated in prior fiscal year one | 14,976 | 41,382 |
Year three, originated in prior fiscal year two | 29,846 | 0 |
Year four, originated in prior fiscal year three | 0 | 0 |
Year five, original in prior fiscal year four | 0 | 0 |
Year six, originated in prior fiscal year five | 0 | |
Total | 44,822 | 56,330 |
Commercial Portfolio Segment | Commercial Mortgage Receivable, Held-For-Investment | Manufactured Housing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year one, originated in current fiscal year | 10,469 | 6,665 |
Year two, originated in prior fiscal year one | 6,674 | 22,372 |
Year three, originated in prior fiscal year two | 17,417 | 0 |
Year four, originated in prior fiscal year three | 0 | 0 |
Year five, original in prior fiscal year four | 0 | 0 |
Year six, originated in prior fiscal year five | 0 | |
Total | 34,560 | 29,037 |
Commercial Portfolio Segment | Commercial Mortgage Receivable, Held-For-Investment | 1-2 internal grade | Multifamily | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year one, originated in current fiscal year | 1,402,934 | 2,438,376 |
Year two, originated in prior fiscal year one | 2,276,836 | 270,953 |
Year three, originated in prior fiscal year two | 92,829 | 103,989 |
Year four, originated in prior fiscal year three | 0 | 90,877 |
Year five, original in prior fiscal year four | 37,851 | 0 |
Year six, originated in prior fiscal year five | 0 | |
Total | 3,810,450 | 2,904,195 |
Commercial Portfolio Segment | Commercial Mortgage Receivable, Held-For-Investment | 1-2 internal grade | Retail | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year one, originated in current fiscal year | 20,941 | 33,830 |
Year two, originated in prior fiscal year one | 33,870 | 11,928 |
Year three, originated in prior fiscal year two | 0 | 29,515 |
Year four, originated in prior fiscal year three | 8,203 | 29,452 |
Year five, original in prior fiscal year four | 0 | 0 |
Year six, originated in prior fiscal year five | 0 | |
Total | 63,014 | 104,725 |
Commercial Portfolio Segment | Commercial Mortgage Receivable, Held-For-Investment | 1-2 internal grade | Office | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year one, originated in current fiscal year | 0 | 50,291 |
Year two, originated in prior fiscal year one | 50,343 | 253,759 |
Year three, originated in prior fiscal year two | 203,840 | 136,800 |
Year four, originated in prior fiscal year three | 108,152 | 43,308 |
Year five, original in prior fiscal year four | 18,746 | 0 |
Year six, originated in prior fiscal year five | 0 | |
Total | 381,081 | 484,158 |
Commercial Portfolio Segment | Commercial Mortgage Receivable, Held-For-Investment | 1-2 internal grade | Industrial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year one, originated in current fiscal year | 77,712 | 0 |
Year two, originated in prior fiscal year one | 0 | 31,906 |
Year three, originated in prior fiscal year two | 14,946 | 0 |
Year four, originated in prior fiscal year three | 0 | 0 |
Year five, original in prior fiscal year four | 0 | 0 |
Year six, originated in prior fiscal year five | 0 | |
Total | 92,658 | 31,906 |
Commercial Portfolio Segment | Commercial Mortgage Receivable, Held-For-Investment | 1-2 internal grade | Mixed Use | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year one, originated in current fiscal year | 19,926 | 32,395 |
Year two, originated in prior fiscal year one | 32,446 | 30,325 |
Year three, originated in prior fiscal year two | 0 | 0 |
Year four, originated in prior fiscal year three | 0 | 0 |
Year five, original in prior fiscal year four | 0 | 0 |
Year six, originated in prior fiscal year five | 0 | |
Total | 52,372 | 62,720 |
Commercial Portfolio Segment | Commercial Mortgage Receivable, Held-For-Investment | 1-2 internal grade | Hospitality | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year one, originated in current fiscal year | 129,645 | 153,032 |
Year two, originated in prior fiscal year one | 155,287 | 26,920 |
Year three, originated in prior fiscal year two | 26,956 | 34,054 |
Year four, originated in prior fiscal year three | 58,814 | 0 |
Year five, original in prior fiscal year four | 22,195 | 0 |
Year six, originated in prior fiscal year five | 0 | |
Total | 392,897 | 214,006 |
Commercial Portfolio Segment | Commercial Mortgage Receivable, Held-For-Investment | 1-2 internal grade | Self Storage | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year one, originated in current fiscal year | 0 | 14,948 |
Year two, originated in prior fiscal year one | 14,976 | 41,382 |
Year three, originated in prior fiscal year two | 29,846 | 0 |
Year four, originated in prior fiscal year three | 0 | 0 |
Year five, original in prior fiscal year four | 0 | 0 |
Year six, originated in prior fiscal year five | 0 | |
Total | 44,822 | 56,330 |
Commercial Portfolio Segment | Commercial Mortgage Receivable, Held-For-Investment | 1-2 internal grade | Manufactured Housing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year one, originated in current fiscal year | 10,469 | 6,665 |
Year two, originated in prior fiscal year one | 6,674 | 22,372 |
Year three, originated in prior fiscal year two | 17,417 | 0 |
Year four, originated in prior fiscal year three | 0 | 0 |
Year five, original in prior fiscal year four | 0 | 0 |
Year six, originated in prior fiscal year five | 0 | |
Total | 34,560 | 29,037 |
Commercial Portfolio Segment | Commercial Mortgage Receivable, Held-For-Investment | 3-4 internal grade | Multifamily | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year one, originated in current fiscal year | 0 | 0 |
Year two, originated in prior fiscal year one | 95,036 | 0 |
Year three, originated in prior fiscal year two | 10,852 | 0 |
Year four, originated in prior fiscal year three | 24,058 | 37,025 |
Year five, original in prior fiscal year four | 37,025 | 0 |
Year six, originated in prior fiscal year five | 0 | |
Total | 166,971 | 37,025 |
Commercial Portfolio Segment | Commercial Mortgage Receivable, Held-For-Investment | 3-4 internal grade | Retail | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year one, originated in current fiscal year | 0 | 0 |
Year two, originated in prior fiscal year one | 0 | 0 |
Year three, originated in prior fiscal year two | 0 | 0 |
Year four, originated in prior fiscal year three | 0 | 0 |
Year five, original in prior fiscal year four | 0 | 0 |
Year six, originated in prior fiscal year five | 0 | |
Total | 0 | 0 |
Commercial Portfolio Segment | Commercial Mortgage Receivable, Held-For-Investment | 3-4 internal grade | Office | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year one, originated in current fiscal year | 0 | 0 |
Year two, originated in prior fiscal year one | 0 | 0 |
Year three, originated in prior fiscal year two | 36,343 | 0 |
Year four, originated in prior fiscal year three | 25,736 | 0 |
Year five, original in prior fiscal year four | 12,977 | 0 |
Year six, originated in prior fiscal year five | 0 | |
Total | 75,056 | 0 |
Commercial Portfolio Segment | Commercial Mortgage Receivable, Held-For-Investment | 3-4 internal grade | Industrial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year one, originated in current fiscal year | 0 | 0 |
Year two, originated in prior fiscal year one | 0 | 0 |
Year three, originated in prior fiscal year two | 0 | 56,933 |
Year four, originated in prior fiscal year three | 0 | 0 |
Year five, original in prior fiscal year four | 0 | 0 |
Year six, originated in prior fiscal year five | 0 | |
Total | 0 | 56,933 |
Commercial Portfolio Segment | Commercial Mortgage Receivable, Held-For-Investment | 3-4 internal grade | Mixed Use | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year one, originated in current fiscal year | 0 | 0 |
Year two, originated in prior fiscal year one | 0 | 0 |
Year three, originated in prior fiscal year two | 0 | 0 |
Year four, originated in prior fiscal year three | 0 | 0 |
Year five, original in prior fiscal year four | 0 | 0 |
Year six, originated in prior fiscal year five | 0 | |
Total | 0 | 0 |
Commercial Portfolio Segment | Commercial Mortgage Receivable, Held-For-Investment | 3-4 internal grade | Hospitality | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year one, originated in current fiscal year | 0 | 0 |
Year two, originated in prior fiscal year one | 0 | 0 |
Year three, originated in prior fiscal year two | 0 | 113,961 |
Year four, originated in prior fiscal year three | 29,966 | 52,790 |
Year five, original in prior fiscal year four | 0 | 79,102 |
Year six, originated in prior fiscal year five | 78,928 | |
Total | 108,894 | 245,853 |
Commercial Portfolio Segment | Commercial Mortgage Receivable, Held-For-Investment | 3-4 internal grade | Self Storage | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year one, originated in current fiscal year | 0 | 0 |
Year two, originated in prior fiscal year one | 0 | 0 |
Year three, originated in prior fiscal year two | 0 | 0 |
Year four, originated in prior fiscal year three | 0 | 0 |
Year five, original in prior fiscal year four | 0 | 0 |
Year six, originated in prior fiscal year five | 0 | |
Total | 0 | 0 |
Commercial Portfolio Segment | Commercial Mortgage Receivable, Held-For-Investment | 3-4 internal grade | Manufactured Housing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year one, originated in current fiscal year | 0 | 0 |
Year two, originated in prior fiscal year one | 0 | 0 |
Year three, originated in prior fiscal year two | 0 | 0 |
Year four, originated in prior fiscal year three | 0 | 0 |
Year five, original in prior fiscal year four | 0 | 0 |
Year six, originated in prior fiscal year five | 0 | |
Total | 0 | $ 0 |
Commercial Portfolio Segment | Commercial Mortgage Receivable, Held-For-Investment | 5 internal grade | Retail | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year one, originated in current fiscal year | 105,498 | |
Year two, originated in prior fiscal year one | 0 | |
Year three, originated in prior fiscal year two | 0 | |
Year four, originated in prior fiscal year three | 0 | |
Year five, original in prior fiscal year four | 0 | |
Year six, originated in prior fiscal year five | 0 | |
Total | $ 105,498 |
Commercial Mortgage Loans - A_2
Commercial Mortgage Loans - Allowance Past Due (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Financing Receivable, Past Due [Line Items] | ||
Loans, gross | $ 5,328,273 | $ 4,226,888 |
Financing Receivable, Held-to-Maturity | Commercial Portfolio Segment | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, gross | 5,328,273 | |
Financing Receivable, Held-to-Maturity | Commercial Portfolio Segment | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, gross | 5,165,700 | |
Financing Receivable, Held-to-Maturity | Commercial Portfolio Segment | 1-29 days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, gross | 0 | |
Financing Receivable, Held-to-Maturity | Commercial Portfolio Segment | 30-59 days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, gross | 0 | |
Financing Receivable, Held-to-Maturity | Commercial Portfolio Segment | 60-89 days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, gross | 0 | |
Financing Receivable, Held-to-Maturity | Commercial Portfolio Segment | 90-119 days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, gross | 0 | |
Financing Receivable, Held-to-Maturity | Commercial Portfolio Segment | 120+ days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, gross | 162,573 | |
Financing Receivable, Held-to-Maturity | Commercial Portfolio Segment | Multifamily | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, gross | 3,977,421 | |
Financing Receivable, Held-to-Maturity | Commercial Portfolio Segment | Multifamily | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, gross | 3,977,421 | |
Financing Receivable, Held-to-Maturity | Commercial Portfolio Segment | Multifamily | 1-29 days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, gross | 0 | |
Financing Receivable, Held-to-Maturity | Commercial Portfolio Segment | Multifamily | 30-59 days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, gross | 0 | |
Financing Receivable, Held-to-Maturity | Commercial Portfolio Segment | Multifamily | 60-89 days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, gross | 0 | |
Financing Receivable, Held-to-Maturity | Commercial Portfolio Segment | Multifamily | 90-119 days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, gross | 0 | |
Financing Receivable, Held-to-Maturity | Commercial Portfolio Segment | Multifamily | 120+ days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, gross | 0 | |
Financing Receivable, Held-to-Maturity | Commercial Portfolio Segment | Retail | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, gross | 168,512 | |
Financing Receivable, Held-to-Maturity | Commercial Portfolio Segment | Retail | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, gross | 63,014 | |
Financing Receivable, Held-to-Maturity | Commercial Portfolio Segment | Retail | 1-29 days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, gross | 0 | |
Financing Receivable, Held-to-Maturity | Commercial Portfolio Segment | Retail | 30-59 days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, gross | 0 | |
Financing Receivable, Held-to-Maturity | Commercial Portfolio Segment | Retail | 60-89 days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, gross | 0 | |
Financing Receivable, Held-to-Maturity | Commercial Portfolio Segment | Retail | 90-119 days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, gross | 0 | |
Financing Receivable, Held-to-Maturity | Commercial Portfolio Segment | Retail | 120+ days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, gross | 105,498 | |
Financing Receivable, Held-to-Maturity | Commercial Portfolio Segment | Office | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, gross | 456,137 | |
Financing Receivable, Held-to-Maturity | Commercial Portfolio Segment | Office | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, gross | 456,137 | |
Financing Receivable, Held-to-Maturity | Commercial Portfolio Segment | Office | 1-29 days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, gross | 0 | |
Financing Receivable, Held-to-Maturity | Commercial Portfolio Segment | Office | 30-59 days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, gross | 0 | |
Financing Receivable, Held-to-Maturity | Commercial Portfolio Segment | Office | 60-89 days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, gross | 0 | |
Financing Receivable, Held-to-Maturity | Commercial Portfolio Segment | Office | 90-119 days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, gross | 0 | |
Financing Receivable, Held-to-Maturity | Commercial Portfolio Segment | Office | 120+ days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, gross | 0 | |
Financing Receivable, Held-to-Maturity | Commercial Portfolio Segment | Industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, gross | 92,658 | |
Financing Receivable, Held-to-Maturity | Commercial Portfolio Segment | Industrial | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, gross | 92,658 | |
Financing Receivable, Held-to-Maturity | Commercial Portfolio Segment | Industrial | 1-29 days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, gross | 0 | |
Financing Receivable, Held-to-Maturity | Commercial Portfolio Segment | Industrial | 30-59 days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, gross | 0 | |
Financing Receivable, Held-to-Maturity | Commercial Portfolio Segment | Industrial | 60-89 days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, gross | 0 | |
Financing Receivable, Held-to-Maturity | Commercial Portfolio Segment | Industrial | 90-119 days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, gross | 0 | |
Financing Receivable, Held-to-Maturity | Commercial Portfolio Segment | Industrial | 120+ days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, gross | 0 | |
Financing Receivable, Held-to-Maturity | Commercial Portfolio Segment | Mixed Use | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, gross | 52,372 | |
Financing Receivable, Held-to-Maturity | Commercial Portfolio Segment | Mixed Use | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, gross | 52,372 | |
Financing Receivable, Held-to-Maturity | Commercial Portfolio Segment | Mixed Use | 1-29 days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, gross | 0 | |
Financing Receivable, Held-to-Maturity | Commercial Portfolio Segment | Mixed Use | 30-59 days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, gross | 0 | |
Financing Receivable, Held-to-Maturity | Commercial Portfolio Segment | Mixed Use | 60-89 days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, gross | 0 | |
Financing Receivable, Held-to-Maturity | Commercial Portfolio Segment | Mixed Use | 90-119 days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, gross | 0 | |
Financing Receivable, Held-to-Maturity | Commercial Portfolio Segment | Mixed Use | 120+ days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, gross | 0 | |
Financing Receivable, Held-to-Maturity | Commercial Portfolio Segment | Hospitality | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, gross | 501,791 | |
Financing Receivable, Held-to-Maturity | Commercial Portfolio Segment | Hospitality | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, gross | 444,716 | |
Financing Receivable, Held-to-Maturity | Commercial Portfolio Segment | Hospitality | 1-29 days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, gross | 0 | |
Financing Receivable, Held-to-Maturity | Commercial Portfolio Segment | Hospitality | 30-59 days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, gross | 0 | |
Financing Receivable, Held-to-Maturity | Commercial Portfolio Segment | Hospitality | 60-89 days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, gross | 0 | |
Financing Receivable, Held-to-Maturity | Commercial Portfolio Segment | Hospitality | 90-119 days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, gross | 0 | |
Financing Receivable, Held-to-Maturity | Commercial Portfolio Segment | Hospitality | 120+ days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, gross | 57,075 | |
Financing Receivable, Held-to-Maturity | Commercial Portfolio Segment | Self Storage | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, gross | 44,822 | |
Financing Receivable, Held-to-Maturity | Commercial Portfolio Segment | Self Storage | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, gross | 44,822 | |
Financing Receivable, Held-to-Maturity | Commercial Portfolio Segment | Self Storage | 1-29 days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, gross | ||
Financing Receivable, Held-to-Maturity | Commercial Portfolio Segment | Self Storage | 30-59 days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, gross | 0 | |
Financing Receivable, Held-to-Maturity | Commercial Portfolio Segment | Self Storage | 60-89 days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, gross | 0 | |
Financing Receivable, Held-to-Maturity | Commercial Portfolio Segment | Self Storage | 90-119 days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, gross | 0 | |
Financing Receivable, Held-to-Maturity | Commercial Portfolio Segment | Self Storage | 120+ days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, gross | 0 | |
Financing Receivable, Held-to-Maturity | Commercial Portfolio Segment | Manufactured Housing | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, gross | 34,560 | |
Financing Receivable, Held-to-Maturity | Commercial Portfolio Segment | Manufactured Housing | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, gross | 34,560 | |
Financing Receivable, Held-to-Maturity | Commercial Portfolio Segment | Manufactured Housing | 1-29 days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, gross | 0 | |
Financing Receivable, Held-to-Maturity | Commercial Portfolio Segment | Manufactured Housing | 30-59 days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, gross | 0 | |
Financing Receivable, Held-to-Maturity | Commercial Portfolio Segment | Manufactured Housing | 60-89 days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, gross | 0 | |
Financing Receivable, Held-to-Maturity | Commercial Portfolio Segment | Manufactured Housing | 90-119 days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, gross | 0 | |
Financing Receivable, Held-to-Maturity | Commercial Portfolio Segment | Manufactured Housing | 120+ days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, gross | $ 0 |
Commercial Mortgage Loans - Non
Commercial Mortgage Loans - Non-Performing Status (Details) - Commercial Mortgage Receivable, Held-For-Investment - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Non-Performing Financial Instruments [Roll Forward] | ||
Addition of non-performing loan amortized cost | $ 105,498 | $ 0 |
Less: Removal of non-performing loan amortized cost | 0 | 37,812 |
Nonperforming Financial Instruments | Commercial Portfolio Segment | ||
Non-Performing Financial Instruments [Roll Forward] | ||
Non-performing loan amortized cost at beginning of year, January 1 | 57,075 | 94,887 |
Non-performing loan amortized cost at end of period | $ 162,573 | $ 57,075 |
Commercial Mortgage Loans - A_3
Commercial Mortgage Loans - Allocation by Risk Rating (Details) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 USD ($) loan | Dec. 31, 2021 USD ($) loan | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Par Value | $ 5,328,273 | $ 4,226,888 |
Commercial Mortgage Receivable, Held-For-Investment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of Loans | loan | 166 | 165 |
Par Value | $ 5,350,728 | $ 4,242,962 |
Commercial Mortgage Receivable, Held-For-Investment | 1 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of Loans | loan | 0 | 0 |
Par Value | $ 0 | $ 0 |
Commercial Mortgage Receivable, Held-For-Investment | 2 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of Loans | loan | 148 | 148 |
Par Value | $ 4,890,312 | $ 3,903,047 |
Commercial Mortgage Receivable, Held-For-Investment | 3 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of Loans | loan | 14 | 16 |
Par Value | $ 244,109 | $ 282,840 |
Commercial Mortgage Receivable, Held-For-Investment | 4 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of Loans | loan | 3 | 1 |
Par Value | $ 107,077 | $ 57,075 |
Commercial Mortgage Receivable, Held-For-Investment | 5 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of Loans | loan | 1 | 0 |
Par Value | $ 109,230 | $ 0 |
Commercial Mortgage Loans - C_2
Commercial Mortgage Loans - Commercial Mortgage Loan Portfolio, Held-For-Investment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Movement in Mortgage Loans on Real Estate [Roll Forward] | |||||
Provision/(benefit) for credit losses | $ 599 | $ 1,613 | $ (30,976) | $ 5,452 | |
Commercial Mortgage Receivable, Held-For-Investment | |||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Movement in Mortgage Loans on Real Estate [Roll Forward] | |||||
Balance at Beginning of Year | 4,211,061 | $ 2,693,848 | $ 2,693,848 | ||
Acquisitions and originations | 1,980,296 | 2,897,002 | |||
Principal repayments | (863,186) | (1,286,598) | |||
Discount accretion/premium amortization | 8,780 | 7,038 | |||
Loans transferred from/(to) commercial real estate loans, held for sale | (9,296) | (52,615) | |||
Net fees capitalized into carrying value of loans | (12,803) | (15,150) | |||
Cost recovery | (2,406) | 0 | |||
Charge-off from allowance | 0 | 289 | |||
Transfer to real estate owned | 0 | (37,523) | |||
Balance at End of Period | $ 5,281,458 | $ 5,281,458 | $ 4,211,061 |
Real Estate Securities - Summar
Real Estate Securities - Summary of RMBS (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Marketable Securities [Line Items] | ||
Carrying Amount | $ 252,491 | $ 4,566,871 |
Average Yield | 2.26% | |
Fannie Mae/Freddie Mac ARMs | ||
Marketable Securities [Line Items] | ||
Carrying Amount | $ 252,491 | $ 4,246,803 |
Average Yield | 2.48% | 2.23% |
Ginnie Mae ARMs | ||
Marketable Securities [Line Items] | ||
Carrying Amount | $ 320,068 | |
Average Yield | 2.72% |
Real Estate Securities - Narrat
Real Estate Securities - Narrative (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2022 USD ($) numberOfPositions | Sep. 30, 2022 USD ($) numberOfPositions | Dec. 31, 2021 USD ($) | |
Debt Securities, Available-for-sale [Line Items] | |||
Maturity term | 184 months | ||
Proceeds from sale of debt securities, trading | $ 0 | $ 3,800,000 | |
Fair Value | $ 74,625 | $ 74,625 | $ 0 |
CRE CLO Bonds | |||
Debt Securities, Available-for-sale [Line Items] | |||
Debt Securities, Available-for-Sale, Weighted Average Contractual Maturity | 13 years | ||
Number of positions | numberOfPositions | 3 | 3 | |
Amortized Cost | $ 74,998 | $ 74,998 | |
Unrealized Loss | $ 373 | $ 373 | |
Number of positions in unrealized loss position 12 months or longer | numberOfPositions | 0 | 0 | |
Fair Value | $ 74,625 | $ 74,625 |
Real Estate Securities - Summ_2
Real Estate Securities - Summary of CLO Bonds (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | $ 74,625 | $ 0 |
CRE CLO Bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Par Value | 75,000 | |
Fair Value | $ 74,625 | |
CRE CLO bond 1 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Interest Rate | 5.80% | |
Par Value | $ 40,000 | |
Fair Value | $ 39,800 | |
CRE CLO bond 2 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Interest Rate | 6.30% | |
Par Value | $ 25,000 | |
Fair Value | $ 24,875 | |
CRE CLO bond 3 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Interest Rate | 7.10% | |
Par Value | $ 10,000 | |
Fair Value | $ 9,950 |
Real Estate Securities - Amorti
Real Estate Securities - Amortized Cost and Fair Value of CLO Bonds (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | $ 74,625 | $ 0 |
CRE CLO Bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 74,998 | |
Credit Loss Allowance | 0 | |
Unrealized Gain | 0 | |
Unrealized Loss | (373) | |
Fair Value | $ 74,625 |
Real Estate Owned (Details)
Real Estate Owned (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Real Estate [Line Items] | ||
Real estate owned, net of depreciation | $ 88,322 | $ 90,048 |
Industrial | Jeffersonville, GA | ||
Real Estate [Line Items] | ||
Real estate owned, acquired through foreclosure, accumulated depreciation | (2,301) | (575) |
Real estate owned, net of depreciation | 88,322 | 90,048 |
Industrial | Jeffersonville, GA | Land | ||
Real Estate [Line Items] | ||
Real estate owned, acquired through foreclosure, gross | 3,436 | 3,436 |
Industrial | Jeffersonville, GA | Building and Improvements | ||
Real Estate [Line Items] | ||
Real estate owned, acquired through foreclosure, gross | 84,259 | 84,259 |
Industrial | Jeffersonville, GA | Furniture, Fixtures and Equipment | ||
Real Estate [Line Items] | ||
Real estate owned, acquired through foreclosure, gross | $ 2,928 | $ 2,928 |
Real Estate Owned - Narrative (
Real Estate Owned - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 17, 2021 | Aug. 31, 2021 | |
Real Estate [Line Items] | ||||||
Depreciation expense | $ 0.6 | $ 0 | $ 1.7 | $ 0.4 | ||
Industrial | Jeffersonville, GA | ||||||
Real Estate [Line Items] | ||||||
Real estate investment property, net | $ 139.5 | |||||
Industrial | Jeffersonville, GA | Mortgages | ||||||
Real Estate [Line Items] | ||||||
Par Value | 112.7 | |||||
Industrial | Jeffersonville, GA | Franklin BSP Realty Trust, Inc | ||||||
Real Estate [Line Items] | ||||||
Noncontrolling interest, ownership percentage by parent | 79% | |||||
Real estate investments, joint ventures | $ 109.8 | |||||
Equity method investments | 21.1 | |||||
Industrial | Jeffersonville, GA | Franklin BSP Realty Trust, Inc | September 2021 Mortgage Note Payable, Eliminated in Consolidation | Mortgages | ||||||
Real Estate [Line Items] | ||||||
Par Value | 88.7 | $ 88.7 | ||||
Industrial | Jeffersonville, GA | JV Affiliate | ||||||
Real Estate [Line Items] | ||||||
Noncontrolling interest, ownership percentage by noncontrolling owners | 21% | |||||
Equity method investments | $ 5.7 | |||||
Noncontrolling interest in joint ventures | 29.8 | |||||
Industrial | Jeffersonville, GA | JV Affiliate | September 2021 Mortgage Note Payable, Affiliate | Mortgages | ||||||
Real Estate [Line Items] | ||||||
Par Value | $ 24 | $ 24 |
Leases - Intangible Leased Asse
Leases - Intangible Leased Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible Lease Asset, Net of Amortization | $ 46,313 | $ 48,472 |
Industrial | Jeffersonville, GA | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible Lease Asset, Gross | 49,192 | 49,192 |
Accumulated Amortization | (2,879) | (720) |
Intangible Lease Asset, Net of Amortization | $ 46,313 | $ 48,472 |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Sep. 17, 2021 extension | Oct. 15, 2019 extension | |
Finite-Lived Intangible Assets [Line Items] | ||||||
Intangible lease contractual life of lease | 20 years | |||||
Weighted average life of intangible asset | 16 years 1 month 6 days | |||||
Amortization | $ 0.7 | $ 0 | $ 2.2 | $ 0.4 | ||
Industrial | Jeffersonville, GA | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Operating lease minimal annual rate increase | 2% | |||||
Number of lease renewal terms | extension | 4 | |||||
Lease renewal term | 5 years | |||||
Remaining term of operating lease | 16 years 1 month 6 days | |||||
Rental income | $ 2.3 | 0.3 | $ 6.9 | 0.3 | ||
Office | Jeffersonville, Indiana | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Operating lease minimal annual rate increase | 1.50% | |||||
Number of lease renewal terms | extension | 4 | |||||
Lease renewal term | 5 years | |||||
Rental income | $ 0.7 | $ 2.1 |
Leases - Future Minimum Payment
Leases - Future Minimum Payments to be Received (Details) $ in Thousands | Sep. 30, 2022 USD ($) |
Leases [Abstract] | |
2022 (October - December) | $ 1,992 |
2023 | 8,046 |
2024 | 8,207 |
2025 | 8,372 |
2026 | 8,539 |
2027 and beyond | 114,981 |
Total future minimum rent | $ 150,137 |
Leases - Schedule of Expected A
Leases - Schedule of Expected Amortization Expense (Details) $ in Thousands | Sep. 30, 2022 USD ($) |
Leases [Abstract] | |
2022 (October - December) | $ (720) |
2023 | (2,880) |
2024 | (2,880) |
2025 | (2,880) |
2026 | $ (2,880) |
Debt - Narrative (Details)
Debt - Narrative (Details) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||
Jun. 29, 2022 USD ($) $ / shares shares | May 13, 2022 USD ($) | Feb. 15, 2022 USD ($) $ / shares shares | Feb. 10, 2022 USD ($) | Mar. 23, 2020 USD ($) | Aug. 31, 2020 USD ($) | Sep. 30, 2022 USD ($) mortgage_asset repurchaseRequest | Dec. 31, 2021 USD ($) mortgage_asset | Sep. 30, 2022 USD ($) mortgage_asset repurchaseRequest | Sep. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) mortgage_asset | Sep. 17, 2021 USD ($) | Aug. 31, 2021 USD ($) | |
Line of Credit Facility [Line Items] | |||||||||||||
Interest expense | $ 25,143,000 | $ 16,747,000 | |||||||||||
Unsecured debt | $ 98,670,000 | $ 148,594,000 | 98,670,000 | 148,594,000 | |||||||||
Secured debt, repurchase agreements, average outstanding amount | $ 230,000,000 | 4,000,000,000 | |||||||||||
Amortization of deferred financing costs | $ 9,737,000 | $ 3,820,000 | |||||||||||
Collateralized Loan Obligations Issued In 2022-FL8 | Preferred Stock | |||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||
Issuance of common stock (in shares) | shares | 108,000 | ||||||||||||
Preferred stock, par value per share (in dollars per share) | $ / shares | $ 0.001 | ||||||||||||
Liquidation preference (in dollars per share) | $ / shares | $ 1,000 | ||||||||||||
Collateralized Loan Obligations Issued 2022-FL9 | Preferred Stock | |||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||
Issuance of common stock (in shares) | shares | 62,246 | ||||||||||||
Preferred stock, par value per share (in dollars per share) | $ / shares | $ 0.001 | ||||||||||||
Liquidation preference (in dollars per share) | $ / shares | $ 1,000 | ||||||||||||
Mortgages | September 2021 Mortgage Note Payable, Affiliate | |||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||
Interest Rate | 3.10% | 3.10% | |||||||||||
Junior Subordinated Debt | |||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||
Borrowings Outstanding | $ 98,670,000 | 98,594,000 | $ 98,670,000 | 98,594,000 | |||||||||
Junior Subordinated Debt | Capstead Mortgage Corporation | |||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||
Par Value | $ 100,000,000 | $ 100,000,000 | |||||||||||
Long-term debt, term | 30 years | 30 years | |||||||||||
Secured debt | U.S. Bank National Association | |||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||
Borrowings Outstanding | $ 3,200,606,000 | $ 2,179,514,000 | $ 3,200,606,000 | $ 2,179,514,000 | |||||||||
Secured debt | Collateralized Loan Obligations Issued in 2018-FL4 | |||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||
Borrowings Outstanding | $ 69,500,000 | ||||||||||||
Amortization of deferred financing costs | $ 5,200,000 | ||||||||||||
Secured debt | Collateralized Loan Obligations Issued in 2019-FL5 | U.S. Bank National Association | |||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||
Collateral (mortgage asset) | mortgage_asset | 30 | 48 | 30 | 48 | |||||||||
Collateral Carrying Amount | $ 452,200,000 | $ 589,000,000 | $ 452,200,000 | $ 589,000,000 | |||||||||
Secured debt | Collateralized Loan Obligations Issued in 2021-FL6 | U.S. Bank National Association | |||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||
Collateral (mortgage asset) | mortgage_asset | 58 | 44 | 58 | 44 | |||||||||
Collateral Carrying Amount | $ 695,800,000 | $ 682,300,000 | $ 695,800,000 | $ 682,300,000 | |||||||||
Secured debt | Collateralized Loan Obligations Issued in 2021-FL7 | U.S. Bank National Association | |||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||
Collateral (mortgage asset) | mortgage_asset | 38 | 47 | 38 | 47 | |||||||||
Collateral Carrying Amount | $ 859,600,000 | $ 871,400,000 | $ 859,600,000 | $ 871,400,000 | |||||||||
Secured debt | Collateralized Loan Obligations Issued In 2022-FL8 | |||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||
Par Value | $ 1,100,000,000 | ||||||||||||
Secured debt | Collateralized Loan Obligations Issued In 2022-FL8 | Subsidiaries | |||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||
Par Value | 132,000,000 | ||||||||||||
Secured debt | Collateralized Loan Obligations Issued In 2022-FL8 | U.S. Bank National Association | |||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||
Collateral (mortgage asset) | repurchaseRequest | 31 | 31 | |||||||||||
Collateral Carrying Amount | $ 1,200,000,000 | $ 1,200,000,000 | |||||||||||
Secured debt | Collateralized Loan Obligations Issued In 2022-FL8 | Third Party Investors | |||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||
Par Value | $ 960,000,000 | ||||||||||||
Secured debt | Collateralized Loan Obligations Issued 2022-FL9 | |||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||
Par Value | $ 740,900,000 | ||||||||||||
Secured debt | Collateralized Loan Obligations Issued 2022-FL9 | Subsidiaries | |||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||
Par Value | 70,300,000 | ||||||||||||
Secured debt | Collateralized Loan Obligations Issued 2022-FL9 | U.S. Bank National Association | |||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||
Collateral (mortgage asset) | repurchaseRequest | 34 | 34 | |||||||||||
Collateral Carrying Amount | $ 767,800,000 | $ 767,800,000 | |||||||||||
Secured debt | Collateralized Loan Obligations Issued 2022-FL9 | Third Party Investors | |||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||
Par Value | $ 670,600,000 | ||||||||||||
Secured debt | BSPRT 2019-FL5, BSPRT 2021-FL6, BSPRT 2021-FL7, BSPRT 2022-FL8, and BSPRT 2022-FL9 | U.S. Bank National Association | |||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||
Collateral Carrying Amount | 401,800,000 | 329,200,000 | 401,800,000 | 329,200,000 | |||||||||
Industrial | Jeffersonville, GA | Mortgages | |||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||
Par Value | $ 112,700,000 | ||||||||||||
Industrial | Jeffersonville, GA | Mortgages | Franklin BSP Realty Trust, Inc | September 2021 Mortgage Note Payable, Eliminated in Consolidation | |||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||
Par Value | 88,700,000 | $ 88,700,000 | |||||||||||
Industrial | Jeffersonville, GA | Mortgages | JV Affiliate | September 2021 Mortgage Note Payable, Affiliate | |||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||
Par Value | $ 24,000,000 | $ 24,000,000 | |||||||||||
Webster Bank | |||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||
Amount of interest in loan transferred | $ 15,200,000 | ||||||||||||
Interest expense | 500,000 | 1,000,000 | |||||||||||
Outstanding balance | 40,700,000 | 40,700,000 | $ 40,700,000 | 40,700,000 | |||||||||
Webster Bank | LIBOR | |||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||
Interest Rate | 2.20% | ||||||||||||
Regional Bank | |||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||
Amount of interest in loan transferred | $ 38,000,000 | ||||||||||||
Interest expense | 100,000 | $ 200,000 | |||||||||||
Outstanding balance | 12,500,000 | $ 12,500,000 | |||||||||||
Regional Bank | SOFR | |||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||
Interest Rate | 4.01% | ||||||||||||
Security benefit life insurance company | Unsecured debt | |||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||
Interest expense | 200,000 | $ 700,000 | |||||||||||
Par Value | $ 100,000,000 | ||||||||||||
Unsecured debt | $ 0 | $ 50,000,000 | $ 0 | $ 50,000,000 | |||||||||
Security benefit life insurance company | Unsecured debt | LIBOR | |||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||
Interest Rate | 4.50% | ||||||||||||
Minimum | |||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||
Advance rate of mortgage loan (percent) | 65% | ||||||||||||
Master repurchase agreements maturity (days) | 30 days | ||||||||||||
Maximum | |||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||
Advance rate of mortgage loan (percent) | 75% | ||||||||||||
Master repurchase agreements maturity (days) | 90 days |
Debt - Schedule of Repurchase F
Debt - Schedule of Repurchase Facilities (Details) | 9 Months Ended | 12 Months Ended | ||||||
Sep. 30, 2022 USD ($) extension | Dec. 31, 2021 USD ($) | Jul. 11, 2022 USD ($) | Jul. 10, 2022 USD ($) | Jul. 07, 2022 USD ($) | Jul. 06, 2022 USD ($) | May 12, 2022 USD ($) | May 11, 2022 USD ($) | |
Assets Sold under Agreements to Repurchase [Line Items] | ||||||||
Committed Financing | $ 2,350,000,000 | $ 1,900,000,000 | ||||||
Amount Outstanding | 699,408,000 | 1,019,600,000 | ||||||
Interest Expense | 25,143,000 | 16,747,000 | ||||||
Secured debt | Barclays Repo Facility | ||||||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||||||
Committed Financing | 500,000,000 | 500,000,000 | ||||||
Amount Outstanding | 157,583,000 | 392,332,000 | ||||||
Interest Expense | $ 6,102,000 | $ 4,057,000 | ||||||
Ending Weighted Average Interest Rate | 5.19% | 1.76% | ||||||
Extension on initial maturity date | 1 year | |||||||
Number of extension options | extension | 2 | |||||||
Revolving Credit Facility | ||||||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||||||
Amount Outstanding | $ 112,613,000 | $ 34,311,000 | ||||||
Ending Weighted Average Interest Rate | 3.85% | 1.71% | ||||||
Revolving Credit Facility | JPM Repo Facility | ||||||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||||||
Committed Financing | $ 500,000,000 | $ 400,000,000 | $ 500,000,000 | $ 400,000,000 | ||||
Amount Outstanding | 235,548,000 | 136,470,000 | ||||||
Interest Expense | $ 6,857,000 | $ 5,178,000 | ||||||
Ending Weighted Average Interest Rate | 5.78% | 2.13% | ||||||
Extension on initial maturity date | 1 year | |||||||
Revolving Credit Facility | CS Repo Facility | ||||||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||||||
Committed Financing | $ 600,000,000 | $ 300,000,000 | $ 600,000,000 | $ 300,000,000 | ||||
Amount Outstanding | 265,801,000 | 137,364,000 | ||||||
Interest Expense | $ 5,048,000 | $ 3,446,000 | ||||||
Ending Weighted Average Interest Rate | 5.61% | 2.43% | ||||||
Revolving Credit Facility | WF Repo Facility | ||||||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||||||
Committed Financing | $ 500,000,000 | $ 450,000,000 | $ 500,000,000 | $ 450,000,000 | ||||
Amount Outstanding | 40,476,000 | 186,734,000 | ||||||
Interest Expense | $ 6,027,000 | $ 2,090,000 | ||||||
Ending Weighted Average Interest Rate | 5.17% | 1.64% | ||||||
Extension on initial maturity date | 1 year | |||||||
Number of extension options | extension | 3 | |||||||
Revolving Credit Facility | Secured debt | Barclays Revolver Facility | ||||||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||||||
Committed Financing | $ 250,000,000 | $ 250,000,000 | ||||||
Amount Outstanding | 0 | 166,700,000 | ||||||
Interest Expense | $ 1,109,000 | $ 1,976,000 | ||||||
Ending Weighted Average Interest Rate | 6.12% | |||||||
Line of credit facility interval period | 3 months | |||||||
Revolving Credit Facility | Secured debt | Barclays Revolver Facility | Minimum | ||||||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||||||
Authorized increase in total commitment amount | $ 100,000,000 | |||||||
Revolving Credit Facility | Secured debt | Barclays Revolver Facility | Maximum | ||||||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||||||
Authorized increase in total commitment amount | $ 150,000,000 |
Debt - Junior Subordinated Note
Debt - Junior Subordinated Notes (Details) - Junior Subordinated Debt - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Borrowings Outstanding | $ 98,670,000 | $ 98,594,000 |
Weighted Average Borrowing Rates | 3.57% | 7.72% |
Junior Subordinated Notes, Maturing October 2035 | ||
Debt Instrument [Line Items] | ||
Borrowings Outstanding | $ 34,499,000 | $ 34,470,000 |
Weighted Average Borrowing Rates | 3.72% | 7.86% |
Junior Subordinated Notes, Maturing December 2035 | ||
Debt Instrument [Line Items] | ||
Borrowings Outstanding | $ 39,503,000 | $ 39,474,000 |
Weighted Average Borrowing Rates | 3.49% | 7.63% |
Junior Subordinated Notes, Maturing September 2036 | ||
Debt Instrument [Line Items] | ||
Borrowings Outstanding | $ 24,668,000 | $ 24,650,000 |
Weighted Average Borrowing Rates | 3.49% | 7.67% |
Capstead Mortgage Corporation | ||
Debt Instrument [Line Items] | ||
Par Value | $ 100,000,000 | |
Capstead Mortgage Corporation | Junior Subordinated Notes, Maturing October 2035 | ||
Debt Instrument [Line Items] | ||
Par Value | 35,000,000 | |
Capstead Mortgage Corporation | Junior Subordinated Notes, Maturing December 2035 | ||
Debt Instrument [Line Items] | ||
Par Value | 40,000,000 | |
Capstead Mortgage Corporation | Junior Subordinated Notes, Maturing September 2036 | ||
Debt Instrument [Line Items] | ||
Par Value | $ 25,000,000 |
Debt - Repurchase Agreements, R
Debt - Repurchase Agreements, Real Estate Securities (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Assets Sold under Agreements to Repurchase [Line Items] | ||
Amount Outstanding | $ 699,408 | $ 1,019,600 |
Interest Expense | 8,472 | 2,692 |
Real estate securities, available for sale, measured at fair value | 74,625 | 0 |
Secured debt | U.S. Bank National Association | Tranche C | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Real estate securities, available for sale, measured at fair value | 62,900 | 43,200 |
Revolving Credit Facility | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Amount Outstanding | 112,613 | 34,311 |
Interest Expense | $ 814 | $ 905 |
Interest Rate | 3.85% | 1.71% |
Days to Maturity | 23 days | 12 days |
Revolving Credit Facility | Securities Sold under Agreements to Repurchase | Asset Pledged as Collateral | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Collateral pledged | $ 137,799 | $ 43,218 |
Revolving Credit Facility | JP Morgan Securities LLC | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Amount Outstanding | 48,817 | 19,025 |
Interest Expense | $ 301 | $ 261 |
Interest Rate | 3.95% | 1.14% |
Days to Maturity | 27 days | 10 days |
Revolving Credit Facility | JP Morgan Securities LLC | Securities Sold under Agreements to Repurchase | Asset Pledged as Collateral | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Collateral pledged | $ 57,468 | $ 24,087 |
Revolving Credit Facility | Goldman Sachs International | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Amount Outstanding | 0 | 0 |
Interest Expense | 0 | 37 |
Revolving Credit Facility | Goldman Sachs International | Securities Sold under Agreements to Repurchase | Asset Pledged as Collateral | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Collateral pledged | 0 | 0 |
Revolving Credit Facility | Barclays Capital Inc. | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Amount Outstanding | 63,796 | 15,286 |
Interest Expense | $ 513 | $ 526 |
Interest Rate | 3.78% | 1.21% |
Days to Maturity | 19 days | 14 days |
Revolving Credit Facility | Barclays Capital Inc. | Securities Sold under Agreements to Repurchase | Asset Pledged as Collateral | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Collateral pledged | $ 80,331 | $ 19,131 |
Revolving Credit Facility | Citigroup Global Markets, Inc. | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Amount Outstanding | 0 | 0 |
Interest Expense | 0 | 81 |
Revolving Credit Facility | Citigroup Global Markets, Inc. | Securities Sold under Agreements to Repurchase | Asset Pledged as Collateral | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Collateral pledged | $ 0 | $ 0 |
Debt - Repurchase Agreements, C
Debt - Repurchase Agreements, Collateral Type (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Net Investment Income [Line Items] | ||
Accrued Interest Receivable | $ 26,287 | $ 30,109 |
Repurchase Arrangements Secured by Agency Securities, Maturities of 30 Days or Less | ||
Net Investment Income [Line Items] | ||
Collateral Carrying Amount | 235,563 | 4,327,020 |
Accrued Interest Receivable | 528 | 8,908 |
Borrowings Outstanding | $ 225,000 | $ 4,144,473 |
Weighted Average Borrowing Rates | 3.16% | 0.13% |
Debt - Collateralized Loan Obli
Debt - Collateralized Loan Obligation by Tranche (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | ||
Par Value Issued | $ 23,998 | $ 23,998 |
U.S. Bank National Association | Secured debt | ||
Debt Instrument [Line Items] | ||
Par Value Issued | 3,601,586 | 2,672,174 |
Par Value Outstanding | 3,200,606 | 2,179,514 |
Collateralized loan obligation excluded | 320,600 | |
U.S. Bank National Association | Secured debt | Tranche A Notes - 2018-FL4 Issuer | ||
Debt Instrument [Line Items] | ||
Par Value Issued | 416,827 | |
Par Value Outstanding | 75,263 | |
U.S. Bank National Association | Secured debt | Tranche A-S Notes - 2018-FL4 Issuer | ||
Debt Instrument [Line Items] | ||
Par Value Issued | 73,813 | |
Par Value Outstanding | 73,813 | |
U.S. Bank National Association | Secured debt | Tranche B Notes - 2018-FL4 Issuer | ||
Debt Instrument [Line Items] | ||
Par Value Issued | 56,446 | |
Par Value Outstanding | 56,446 | |
U.S. Bank National Association | Secured debt | Tranche C Notes - 2018-FL4 Issuer | ||
Debt Instrument [Line Items] | ||
Par Value Issued | 68,385 | |
Par Value Outstanding | 68,385 | |
U.S. Bank National Association | Secured debt | Tranche D Notes - 2018-FL4 Issuer | ||
Debt Instrument [Line Items] | ||
Par Value Issued | 57,531 | |
Par Value Outstanding | 57,531 | |
U.S. Bank National Association | Secured debt | Tranche E Notes - 2018-FL4 Issuer | ||
Debt Instrument [Line Items] | ||
Par Value Issued | 28,223 | |
Par Value Outstanding | 28,223 | |
U.S. Bank National Association | Secured debt | Tranche A Notes - 2019-FL5 Issuer | ||
Debt Instrument [Line Items] | ||
Par Value Issued | 407,025 | 407,025 |
Par Value Outstanding | 49,645 | 299,529 |
U.S. Bank National Association | Secured debt | Tranche A-S Notes - 2019-FL5 Issuer | ||
Debt Instrument [Line Items] | ||
Par Value Issued | 76,950 | 76,950 |
Par Value Outstanding | 76,950 | 76,950 |
U.S. Bank National Association | Secured debt | Tranche B Notes - 2019-FL5 Issuer | ||
Debt Instrument [Line Items] | ||
Par Value Issued | 50,000 | 50,000 |
Par Value Outstanding | 50,000 | 50,000 |
U.S. Bank National Association | Secured debt | Tranche C Notes - 2019-FL5 Issuer | ||
Debt Instrument [Line Items] | ||
Par Value Issued | 61,374 | 61,374 |
Par Value Outstanding | 61,374 | 61,374 |
U.S. Bank National Association | Secured debt | Tranche D Notes - 2019-FL5 Issuer | ||
Debt Instrument [Line Items] | ||
Par Value Issued | 48,600 | 48,600 |
Par Value Outstanding | 5,000 | 5,000 |
U.S. Bank National Association | Secured debt | Tranche E Notes - 2019-FL5 Issuer | ||
Debt Instrument [Line Items] | ||
Par Value Issued | 20,250 | 20,250 |
Par Value Outstanding | 20,250 | 20,250 |
U.S. Bank National Association | Secured debt | Class A Notes - 2021-FL6 Issuer | ||
Debt Instrument [Line Items] | ||
Par Value Issued | 367,500 | 367,500 |
Par Value Outstanding | 367,500 | 367,500 |
U.S. Bank National Association | Secured debt | Class A-S Notes - 2021-FL6 Issuer | ||
Debt Instrument [Line Items] | ||
Par Value Issued | 86,625 | 86,625 |
Par Value Outstanding | 86,625 | 86,625 |
U.S. Bank National Association | Secured debt | Class B Notes - 2021-FL6 Issuer | ||
Debt Instrument [Line Items] | ||
Par Value Issued | 33,250 | 33,250 |
Par Value Outstanding | 33,250 | 33,250 |
U.S. Bank National Association | Secured debt | Class C Notes - 2021-FL6 Issuer | ||
Debt Instrument [Line Items] | ||
Par Value Issued | 41,125 | 41,125 |
Par Value Outstanding | 41,125 | 41,125 |
U.S. Bank National Association | Secured debt | Class D Notes - 2021-FL6 Issuer | ||
Debt Instrument [Line Items] | ||
Par Value Issued | 44,625 | 44,625 |
Par Value Outstanding | 44,625 | 44,625 |
U.S. Bank National Association | Secured debt | Class E Notes - 2021-FL6 Issuer | ||
Debt Instrument [Line Items] | ||
Par Value Issued | 11,375 | 11,375 |
Par Value Outstanding | 11,375 | 11,375 |
U.S. Bank National Association | Secured debt | Class A Notes - 2021-FL7 Issuer | ||
Debt Instrument [Line Items] | ||
Par Value Issued | 508,500 | 508,500 |
Par Value Outstanding | 508,500 | 508,500 |
U.S. Bank National Association | Secured debt | Class A-S Notes - 2021-FL7 Issuer | ||
Debt Instrument [Line Items] | ||
Par Value Issued | 13,500 | 13,500 |
Par Value Outstanding | 13,500 | 13,500 |
U.S. Bank National Association | Secured debt | Class B Notes - 2021-FL7 Issuer | ||
Debt Instrument [Line Items] | ||
Par Value Issued | 52,875 | 52,875 |
Par Value Outstanding | 52,875 | 52,875 |
U.S. Bank National Association | Secured debt | Class C Notes - 2021-FL7 Issuer | ||
Debt Instrument [Line Items] | ||
Par Value Issued | 66,375 | 66,375 |
Par Value Outstanding | 66,375 | 66,375 |
U.S. Bank National Association | Secured debt | Class D Notes - 2021-FL7 Issuer | ||
Debt Instrument [Line Items] | ||
Par Value Issued | 67,500 | 67,500 |
Par Value Outstanding | 67,500 | 67,500 |
U.S. Bank National Association | Secured debt | Class E Notes - 2021-FL7 Issuer | ||
Debt Instrument [Line Items] | ||
Par Value Issued | 13,500 | 13,500 |
Par Value Outstanding | 13,500 | $ 13,500 |
U.S. Bank National Association | Secured debt | Class A Notes - 2022-FL8 Issuer | ||
Debt Instrument [Line Items] | ||
Par Value Issued | 690,000 | |
Par Value Outstanding | 690,000 | |
U.S. Bank National Association | Secured debt | Class A-S Notes - 2022-FL8 Issuer | ||
Debt Instrument [Line Items] | ||
Par Value Issued | 66,000 | |
Par Value Outstanding | 66,000 | |
U.S. Bank National Association | Secured debt | Class B Notes - 2022-FL8 Issuer | ||
Debt Instrument [Line Items] | ||
Par Value Issued | 55,500 | |
Par Value Outstanding | 55,500 | |
U.S. Bank National Association | Secured debt | Class C Notes - 2022-FL8 Issuer | ||
Debt Instrument [Line Items] | ||
Par Value Issued | 67,500 | |
Par Value Outstanding | 67,500 | |
U.S. Bank National Association | Secured debt | Class D Notes - 2022-FL8 Issuer | ||
Debt Instrument [Line Items] | ||
Par Value Issued | 81,000 | |
Par Value Outstanding | 81,000 | |
U.S. Bank National Association | Secured debt | Class A Notes - 2022-FL9 Issuer | ||
Debt Instrument [Line Items] | ||
Par Value Issued | 423,667 | |
Par Value Outstanding | 423,667 | |
U.S. Bank National Association | Secured debt | Class A-S Notes - 2022-FL9 Issuer | ||
Debt Instrument [Line Items] | ||
Par Value Issued | 96,380 | |
Par Value Outstanding | 96,380 | |
U.S. Bank National Association | Secured debt | Class B Notes - 2022-FL9 Issuer | ||
Debt Instrument [Line Items] | ||
Par Value Issued | 42,166 | |
Par Value Outstanding | 42,166 | |
U.S. Bank National Association | Secured debt | Class C Notes - 2022-FL9 Issuer | ||
Debt Instrument [Line Items] | ||
Par Value Issued | 48,189 | |
Par Value Outstanding | 48,189 | |
U.S. Bank National Association | Secured debt | Class D Notes - 2022-FL9 Issuer | ||
Debt Instrument [Line Items] | ||
Par Value Issued | 49,194 | |
Par Value Outstanding | 49,194 | |
U.S. Bank National Association | Secured debt | Class E Notes - 2022-FL9 Issuer | ||
Debt Instrument [Line Items] | ||
Par Value Issued | 11,041 | |
Par Value Outstanding | $ 11,041 | |
1M LIBOR | U.S. Bank National Association | Secured debt | Tranche A Notes - 2018-FL4 Issuer | ||
Debt Instrument [Line Items] | ||
Interest Rate | 1.05% | |
1M LIBOR | U.S. Bank National Association | Secured debt | Tranche A-S Notes - 2018-FL4 Issuer | ||
Debt Instrument [Line Items] | ||
Interest Rate | 1.30% | |
1M LIBOR | U.S. Bank National Association | Secured debt | Tranche B Notes - 2018-FL4 Issuer | ||
Debt Instrument [Line Items] | ||
Interest Rate | 1.60% | |
1M LIBOR | U.S. Bank National Association | Secured debt | Tranche C Notes - 2018-FL4 Issuer | ||
Debt Instrument [Line Items] | ||
Interest Rate | 2.10% | |
1M LIBOR | U.S. Bank National Association | Secured debt | Tranche D Notes - 2018-FL4 Issuer | ||
Debt Instrument [Line Items] | ||
Interest Rate | 2.75% | |
1M LIBOR | U.S. Bank National Association | Secured debt | Tranche E Notes - 2018-FL4 Issuer | ||
Debt Instrument [Line Items] | ||
Interest Rate | 3.05% | |
1M LIBOR | U.S. Bank National Association | Secured debt | Tranche A Notes - 2019-FL5 Issuer | ||
Debt Instrument [Line Items] | ||
Interest Rate | 1.15% | 1.15% |
1M LIBOR | U.S. Bank National Association | Secured debt | Tranche A-S Notes - 2019-FL5 Issuer | ||
Debt Instrument [Line Items] | ||
Interest Rate | 1.48% | 1.48% |
1M LIBOR | U.S. Bank National Association | Secured debt | Tranche B Notes - 2019-FL5 Issuer | ||
Debt Instrument [Line Items] | ||
Interest Rate | 1.40% | 1.40% |
1M LIBOR | U.S. Bank National Association | Secured debt | Tranche C Notes - 2019-FL5 Issuer | ||
Debt Instrument [Line Items] | ||
Interest Rate | 2% | 2% |
1M LIBOR | U.S. Bank National Association | Secured debt | Tranche D Notes - 2019-FL5 Issuer | ||
Debt Instrument [Line Items] | ||
Interest Rate | 2.40% | 2.40% |
1M LIBOR | U.S. Bank National Association | Secured debt | Tranche E Notes - 2019-FL5 Issuer | ||
Debt Instrument [Line Items] | ||
Interest Rate | 2.85% | 2.85% |
1M LIBOR | U.S. Bank National Association | Secured debt | Class A Notes - 2021-FL6 Issuer | ||
Debt Instrument [Line Items] | ||
Interest Rate | 1.10% | 1.10% |
1M LIBOR | U.S. Bank National Association | Secured debt | Class A-S Notes - 2021-FL6 Issuer | ||
Debt Instrument [Line Items] | ||
Interest Rate | 1.30% | 1.30% |
1M LIBOR | U.S. Bank National Association | Secured debt | Class B Notes - 2021-FL6 Issuer | ||
Debt Instrument [Line Items] | ||
Interest Rate | 1.60% | 1.60% |
1M LIBOR | U.S. Bank National Association | Secured debt | Class C Notes - 2021-FL6 Issuer | ||
Debt Instrument [Line Items] | ||
Interest Rate | 2.05% | 2.05% |
1M LIBOR | U.S. Bank National Association | Secured debt | Class D Notes - 2021-FL6 Issuer | ||
Debt Instrument [Line Items] | ||
Interest Rate | 3% | 3% |
1M LIBOR | U.S. Bank National Association | Secured debt | Class E Notes - 2021-FL6 Issuer | ||
Debt Instrument [Line Items] | ||
Interest Rate | 3.50% | 3.50% |
1M LIBOR | U.S. Bank National Association | Secured debt | Class A Notes - 2021-FL7 Issuer | ||
Debt Instrument [Line Items] | ||
Interest Rate | 1.32% | 1.32% |
1M LIBOR | U.S. Bank National Association | Secured debt | Class A-S Notes - 2021-FL7 Issuer | ||
Debt Instrument [Line Items] | ||
Interest Rate | 1.65% | 1.65% |
1M LIBOR | U.S. Bank National Association | Secured debt | Class B Notes - 2021-FL7 Issuer | ||
Debt Instrument [Line Items] | ||
Interest Rate | 2.05% | 2.05% |
1M LIBOR | U.S. Bank National Association | Secured debt | Class C Notes - 2021-FL7 Issuer | ||
Debt Instrument [Line Items] | ||
Interest Rate | 2.30% | 2.30% |
1M LIBOR | U.S. Bank National Association | Secured debt | Class D Notes - 2021-FL7 Issuer | ||
Debt Instrument [Line Items] | ||
Interest Rate | 2.75% | 2.75% |
1M LIBOR | U.S. Bank National Association | Secured debt | Class E Notes - 2021-FL7 Issuer | ||
Debt Instrument [Line Items] | ||
Interest Rate | 3.40% | 3.40% |
1M LIBOR | U.S. Bank National Association | Secured debt | Class A Notes - 2022-FL8 Issuer | ||
Debt Instrument [Line Items] | ||
Interest Rate | 1.50% | |
1M LIBOR | U.S. Bank National Association | Secured debt | Class A-S Notes - 2022-FL8 Issuer | ||
Debt Instrument [Line Items] | ||
Interest Rate | 1.85% | |
1M LIBOR | U.S. Bank National Association | Secured debt | Class B Notes - 2022-FL8 Issuer | ||
Debt Instrument [Line Items] | ||
Interest Rate | 2.05% | |
1M LIBOR | U.S. Bank National Association | Secured debt | Class C Notes - 2022-FL8 Issuer | ||
Debt Instrument [Line Items] | ||
Interest Rate | 2.30% | |
1M LIBOR | U.S. Bank National Association | Secured debt | Class D Notes - 2022-FL8 Issuer | ||
Debt Instrument [Line Items] | ||
Interest Rate | 3.50% | |
1M LIBOR | U.S. Bank National Association | Secured debt | Class A Notes - 2022-FL9 Issuer | ||
Debt Instrument [Line Items] | ||
Interest Rate | 2.55% | |
1M LIBOR | U.S. Bank National Association | Secured debt | Class A-S Notes - 2022-FL9 Issuer | ||
Debt Instrument [Line Items] | ||
Interest Rate | 3.10% | |
1M LIBOR | U.S. Bank National Association | Secured debt | Class B Notes - 2022-FL9 Issuer | ||
Debt Instrument [Line Items] | ||
Interest Rate | 3.60% | |
1M LIBOR | U.S. Bank National Association | Secured debt | Class C Notes - 2022-FL9 Issuer | ||
Debt Instrument [Line Items] | ||
Interest Rate | 4.15% | |
1M LIBOR | U.S. Bank National Association | Secured debt | Class D Notes - 2022-FL9 Issuer | ||
Debt Instrument [Line Items] | ||
Interest Rate | 5.05% | |
1M LIBOR | U.S. Bank National Association | Secured debt | Class E Notes - 2022-FL9 Issuer | ||
Debt Instrument [Line Items] | ||
Interest Rate | 5.65% |
Debt - Collateralized Loan Ob_2
Debt - Collateralized Loan Obligation (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | |
Assets | |||
Cash | $ 216,985 | $ 154,929 | $ 91,374 |
Commercial mortgage loans, held for investment, net | 5,281,458 | 4,211,061 | |
Accrued interest receivable | 26,287 | 30,109 | |
Total assets | 6,178,121 | 9,474,701 | |
Liabilities | |||
Notes payable | 23,998 | 23,998 | |
Accrued interest payable | 8,472 | 2,692 | |
Total liabilities | 4,501,591 | 7,666,645 | |
Allowance for credit loss | 46,815 | 15,827 | |
Collaterized loan obligation | |||
Assets | |||
Cash | 87,747 | 187,668 | |
Commercial mortgage loans, held for investment, net | 3,954,397 | 2,629,431 | |
Accrued interest receivable | 11,253 | 5,918 | |
Total assets | 4,053,397 | 2,823,017 | |
Liabilities | |||
Notes payable | 3,634,459 | 2,482,762 | |
Accrued interest payable | 8,357 | 1,598 | |
Total liabilities | 3,642,816 | 2,484,360 | |
Restricted cash | 86,900 | 187,000 | |
Allowance for credit loss | 7,400 | 8,700 | |
Collateralized loan obligation excluded | 453,400 | 320,600 | |
Deferred financing cost and discount | $ 19,500 | $ 17,300 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Numerator | ||||||||
Net income/(loss) | $ 35,258 | $ (25,709) | $ (22,507) | $ 38,495 | $ 30,010 | $ 30,146 | $ (12,958) | $ 98,651 |
Less: Preferred stock dividends | 6,899 | 4,804 | 34,865 | 12,040 | ||||
Less: Undistributed earnings allocated to preferred stock | 0 | 4,201 | 0 | 10,706 | ||||
Net income/(loss) attributable to common stockholders, basic | 28,359 | 29,490 | (47,823) | 75,905 | ||||
Net income/(loss) attributable to common stockholders, diluted | $ 28,359 | $ 29,490 | $ (47,823) | $ 75,905 | ||||
Denominator | ||||||||
Weighted-average common shares outstanding for basic earnings per share (in shares) | 83,665,250 | 44,185,241 | 67,965,397 | 44,245,733 | ||||
Unvested restricted shares (in shares) | 0 | 15,323 | 0 | 15,737 | ||||
Weighted-average common shares outstanding for diluted earnings per share (in shares) | 83,665,250 | 44,200,564 | 67,965,397 | 44,261,470 | ||||
Basic earnings per share (in dollars per share) | $ 0.34 | $ 0.67 | $ (0.70) | $ 1.72 | ||||
Diluted earnings per share (in dollars per share) | $ 0.34 | $ 0.67 | $ (0.70) | $ 1.71 | ||||
Restricted Stock | ||||||||
Denominator | ||||||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 516,830 | 465,237 | ||||||
Convertible Preferred Stock | ||||||||
Denominator | ||||||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 5,789,378 | 21,508,045 |
Equity Transactions - Summary o
Equity Transactions - Summary of Shares Outstanding (Details) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||||||
Oct. 20, 2022 shares | Oct. 19, 2022 shares | Jun. 24, 2022 shares | Apr. 19, 2022 shares | Jun. 30, 2022 shares | Sep. 30, 2022 USD ($) $ / shares shares | Jun. 30, 2022 shares | Sep. 30, 2021 USD ($) shares | Jun. 30, 2021 USD ($) shares | Mar. 31, 2021 USD ($) shares | Sep. 30, 2022 USD ($) $ / shares shares | Sep. 30, 2021 USD ($) shares | Mar. 31, 2022 shares | Dec. 31, 2021 USD ($) shares | Dec. 31, 2020 USD ($) shares | |
Class of Stock [Line Items] | |||||||||||||||
Common stock - at par value, shares outstanding (in shares) | 83,362,351 | 83,362,351 | 43,965,928 | ||||||||||||
Redeemable Convertible Preferred Stock | $ | $ 96,724 | $ 96,724 | $ 96,655 | ||||||||||||
Common stock shares repurchased (in shares) | 931,053 | ||||||||||||||
Common stock shares repurchased, average price per share (in dollars per share) | $ / shares | $ 11.85 | ||||||||||||||
Common stock shares repurchased | $ | $ 11,035 | $ 2,204 | $ 66 | $ 9,147 | $ 11,000 | ||||||||||
Common stock, shares issued (in shares) | 83,362,351 | 83,362,351 | 43,965,928 | ||||||||||||
Subsequent Event | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Common stock, shares issued (in shares) | 119,538 | ||||||||||||||
Series C Preferred Stock | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Redeemable Convertible Preferred Stock | $ | $ 6,976 | $ 6,969 | $ 6,976 | $ 6,969 | $ 6,971 | $ 6,962 | |||||||||
Preferred stock, shares outstanding (in shares) | 1,400 | 1,400 | 1,400 | 1,400 | 1,400 | 1,400 | |||||||||
Preferred stock dividends declared (in dollars per share) | $ / shares | $ 106.22 | ||||||||||||||
Series C Preferred Stock | Subsequent Event | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Shares converted (in shares) | 400 | ||||||||||||||
Preferred stock converted to common stock, per share stock consideration (in shares) | 299.2 | ||||||||||||||
Preferred stock exchanged (in shares) | 1,000 | ||||||||||||||
Series D Preferred Stock | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Redeemable Convertible Preferred Stock | $ | $ 0 | $ 89,677 | $ 0 | $ 89,677 | $ 89,684 | $ 0 | |||||||||
Preferred stock, shares outstanding (in shares) | 0 | 17,950 | 0 | 17,950 | 17,950 | 0 | |||||||||
Preferred stock exchanged (in shares) | 17,950 | (17,950) | 0 | ||||||||||||
Series H Preferred Stock | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Redeemable Convertible Preferred Stock | $ | $ 89,748 | $ 0 | $ 89,748 | $ 0 | $ 0 | $ 0 | |||||||||
Preferred stock, shares outstanding (in shares) | 17,950 | 0 | 17,950 | 0 | 0 | 0 | |||||||||
Preferred stock dividends declared (in dollars per share) | $ / shares | $ 106.22 | ||||||||||||||
Preferred stock exchanged (in shares) | (17,950) | (17,950) | 0 | ||||||||||||
Series E Preferred Stock | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Preferred stock, shares outstanding (in shares) | 10,329,039 | 0 | 10,329,039 | 0 | 10,329,039 | 0 | |||||||||
Preferred stock dividends declared (in dollars per share) | $ / shares | $ 0.46875 | ||||||||||||||
Perpetual preferred stock and automatically convertible preferred stock | $ | $ 258,742 | $ 0 | $ 258,742 | $ 0 | $ 258,742 | $ 0 | |||||||||
Series F Preferred Stock | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Preferred stock, shares outstanding (in shares) | 0 | 0 | 0 | 0 | 0 | 39,733,299 | 0 | ||||||||
Perpetual preferred stock and automatically convertible preferred stock | $ | $ 0 | $ 0 | $ 0 | $ 0 | $ 710,431 | $ 0 | |||||||||
Shares converted (in shares) | (39,733,299) | (39,733,299) | 0 | ||||||||||||
Conversion ratio of convertible preferred stock (in shares) | 1 | ||||||||||||||
Common Stock | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Common stock - at par value | $ | $ 830 | $ 830 | $ 441 | ||||||||||||
Common stock - at par value, shares outstanding (in shares) | 84,226,628 | 83,362,351 | 84,226,628 | 44,162,657 | 44,284,833 | 44,135,659 | 83,362,351 | 44,162,657 | 44,471,127 | 43,965,928 | 44,510,051 | ||||
Common stock dividends declared (in dollars per share) | $ / shares | $ 0.355 | ||||||||||||||
Common stock shares repurchased (in shares) | 931,053 | (743) | 123,257 | 3,784 | 521,796 | ||||||||||
Common stock shares repurchased | $ | $ 9 | $ 1 | $ 5 | ||||||||||||
Shares converted (in shares) | (39,733,299) |
Equity Transactions - Narrative
Equity Transactions - Narrative (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Class of Stock [Line Items] | |||
Minimum distribution percentage to qualify for REIT taxation status | 90% | ||
Distribution percentage required to avoid paying federal income taxes | 100% | ||
Total distributions | $ 58,100 | $ 36,500 | |
Cash distributions | 57,000 | 31,400 | |
Common stock issued under DRIP | 1,100 | 5,100 | |
Distributions payable | 36,546 | $ 20,447 | $ 30,346 |
Stock repurchase program, authorized amount | 65,000 | ||
Stock repurchase program, remaining authorized repurchase amount | 53,964 | ||
Common Stock | |||
Class of Stock [Line Items] | |||
Distributions payable | 29,600 | 12,500 | |
Preferred Stock | Series C Preferred Stock | |||
Class of Stock [Line Items] | |||
Distributions payable | 200 | 100 | |
Preferred Stock | Series E Preferred Stock | |||
Class of Stock [Line Items] | |||
Distributions payable | 4,800 | 4,800 | |
Preferred Stock | Series H Preferred Stock | |||
Class of Stock [Line Items] | |||
Distributions payable | $ 1,900 | ||
Preferred Stock | Series D Preferred Stock | |||
Class of Stock [Line Items] | |||
Distributions payable | 1,500 | ||
Preferred Stock | Series F Preferred Stock | |||
Class of Stock [Line Items] | |||
Distributions payable | $ 11,300 |
Equity Transactions - Preferred
Equity Transactions - Preferred Stock Activity (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Jun. 24, 2022 | Apr. 19, 2022 | Jun. 30, 2022 | Jun. 30, 2022 | Sep. 30, 2022 | Sep. 30, 2021 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning balance | $ 96,655 | |||||
Automatically converted into Common Stock | $ 0 | |||||
Ending balance | $ 96,724 | |||||
Series C Preferred Stock | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning balance (in shares) | 1,400 | 1,400 | ||||
Beginning balance | $ 6,971 | $ 6,962 | ||||
Amortization of offering costs | $ 5 | $ 7 | ||||
Ending balance (in shares) | 1,400 | 1,400 | ||||
Ending balance | $ 6,976 | $ 6,969 | ||||
Series D Preferred Stock | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning balance (in shares) | 17,950 | 0 | ||||
Beginning balance | $ 89,684 | $ 0 | ||||
Amortization of offering costs | $ 64 | $ 12 | ||||
Issuance of Preferred Stock (in shares) | 0 | 17,950 | ||||
Issuance of Preferred Stock | $ 0 | $ 89,748 | ||||
Exchanged for Series H Preferred Stock / Issuance of Series H Preferred Stock in exchange for Series D Preferred Stock (in shares) | 17,950 | (17,950) | 0 | |||
Exchanged for Series H Preferred Stock / Issuance of Series H Preferred Stock in exchange for Series D Preferred Stock | $ (89,748) | $ 0 | ||||
Offering costs | $ 0 | $ (83) | ||||
Ending balance (in shares) | 0 | 17,950 | ||||
Ending balance | $ 0 | $ 89,677 | ||||
Series E Preferred Stock | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning balance (in shares) | 10,329,039 | 0 | ||||
Beginning balance | $ 258,742 | $ 0 | ||||
Ending balance (in shares) | 10,329,039 | 0 | ||||
Ending balance | $ 258,742 | $ 0 | ||||
Series F Preferred Stock | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning balance (in shares) | 39,733,299 | 0 | ||||
Beginning balance | $ 710,431 | $ 0 | ||||
Automatically converted into Common Stock (in shares) | (39,733,299) | (39,733,299) | 0 | |||
Automatically converted into Common Stock | $ (710,431) | $ 0 | ||||
Ending balance (in shares) | 0 | 0 | 0 | |||
Ending balance | $ 0 | $ 0 | ||||
Series H Preferred Stock | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning balance (in shares) | 0 | 0 | ||||
Beginning balance | $ 0 | $ 0 | ||||
Exchanged for Series H Preferred Stock / Issuance of Series H Preferred Stock in exchange for Series D Preferred Stock (in shares) | (17,950) | (17,950) | 0 | |||
Exchanged for Series H Preferred Stock / Issuance of Series H Preferred Stock in exchange for Series D Preferred Stock | $ (89,748) | $ 0 | ||||
Ending balance (in shares) | 17,950 | 0 | ||||
Ending balance | $ 89,748 | $ 0 |
Equity Transactions - Repurchas
Equity Transactions - Repurchases (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2022 USD ($) shares | Sep. 30, 2022 USD ($) $ / shares shares | |
Equity [Abstract] | ||
Authorized repurchase amount | $ 65,000 | $ 65,000 |
Repurchases paid (in shares) | shares | 774,653 | 774,653 |
Repurchases paid | $ (9,359) | $ (9,359) |
Repurchases unsettled (in shares) | shares | 156,400 | 156,400 |
Repurchases unsettled | $ (1,677) | $ (1,677) |
Remaining as of September 30, 2022 | $ 53,964 | $ 53,964 |
Common stock shares repurchased, average price per share (in dollars per share) | $ / shares | $ 11.85 |
Equity Transactions - Changes i
Equity Transactions - Changes in AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | $ 0 | $ 0 | $ (62) | $ (8,256) |
Other comprehensive (loss) income | (373) | 0 | (593) | 8,256 |
Reclassification adjustment for amounts included in net income/(loss) | 282 | |||
Ending balance | (373) | 0 | (373) | 0 |
Available for Sale Securities | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | 0 | 0 | 0 | (8,256) |
Other comprehensive (loss) income | (373) | 0 | (373) | 8,256 |
Reclassification adjustment for amounts included in net income/(loss) | 0 | |||
Ending balance | (373) | 0 | (373) | 0 |
Cash Flow Hedges | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | 0 | 0 | (62) | 0 |
Other comprehensive (loss) income | 0 | 0 | (220) | 0 |
Reclassification adjustment for amounts included in net income/(loss) | 282 | |||
Ending balance | $ 0 | $ 0 | $ 0 | $ 0 |
Commitments and Contingencies -
Commitments and Contingencies - Unfunded Commitments (Details) - Unfunded commitments under commercial mortgage loans - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Loss Contingencies [Line Items] | ||
2022 | $ 8,000 | $ 25,864 |
2023 | 90,093 | 123,860 |
2024 | 359,735 | 271,056 |
2025 and beyond | 74,755 | 37,325 |
Total | $ 532,583 | $ 458,105 |
Related Party Transactions an_3
Related Party Transactions and Arrangements - Narrative (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Aug. 31, 2020 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | Sep. 17, 2021 | Aug. 31, 2021 | Dec. 31, 2020 | |
Related Party Transaction [Line Items] | |||||||||
Interest Expense | $ 25,143,000 | $ 16,747,000 | |||||||
Unsecured debt | $ 98,670,000 | 98,670,000 | 148,594,000 | ||||||
Commercial mortgage loans, held for investment, net | 5,281,458,000 | 5,281,458,000 | $ 4,211,061,000 | ||||||
Interest income | $ 94,131,000 | $ 47,747,000 | $ 239,602,000 | $ 138,969,000 | |||||
Series D Preferred Stock | |||||||||
Related Party Transaction [Line Items] | |||||||||
Preferred stock, shares outstanding (in shares) | 0 | 17,950 | 0 | 17,950 | 17,950 | 0 | |||
Unsecured debt | Security benefit life insurance company | |||||||||
Related Party Transaction [Line Items] | |||||||||
Par Value | $ 100,000,000 | ||||||||
Interest Expense | $ 200,000 | $ 700,000 | |||||||
Unsecured debt | 0 | 0 | $ 50,000,000 | ||||||
Unsecured debt | Security benefit life insurance company | LIBOR | |||||||||
Related Party Transaction [Line Items] | |||||||||
Interest Rate | 4.50% | ||||||||
Industrial | Jeffersonville, GA | |||||||||
Related Party Transaction [Line Items] | |||||||||
Real estate investment property, net | $ 139,500,000 | ||||||||
Industrial | Jeffersonville, GA | Mortgages | |||||||||
Related Party Transaction [Line Items] | |||||||||
Par Value | 112,700,000 | ||||||||
Industrial | Franklin BSP Realty Trust, Inc | Jeffersonville, GA | |||||||||
Related Party Transaction [Line Items] | |||||||||
Noncontrolling interest, ownership percentage by parent | 79% | ||||||||
Real estate investments, joint ventures | $ 109,800,000 | ||||||||
Equity method investments | 21,100,000 | ||||||||
Industrial | Franklin BSP Realty Trust, Inc | Jeffersonville, GA | September 2021 Mortgage Note Payable, Eliminated in Consolidation | Mortgages | |||||||||
Related Party Transaction [Line Items] | |||||||||
Par Value | 88,700,000 | $ 88,700,000 | |||||||
Industrial | JV Affiliate | Jeffersonville, GA | |||||||||
Related Party Transaction [Line Items] | |||||||||
Noncontrolling interest, ownership percentage by noncontrolling owners | 21% | ||||||||
Equity method investments | $ 5,700,000 | ||||||||
Noncontrolling interest in joint ventures | 29,800,000 | ||||||||
Industrial | JV Affiliate | Jeffersonville, GA | September 2021 Mortgage Note Payable, Affiliate | Mortgages | |||||||||
Related Party Transaction [Line Items] | |||||||||
Par Value | $ 24,000,000 | $ 24,000,000 | |||||||
Affiliated entity | |||||||||
Related Party Transaction [Line Items] | |||||||||
Commercial mortgage loans, held for investment, net | 122,500,000 | 122,500,000 | |||||||
Interest income | $ 1,600,000 | $ 3,400,000 | |||||||
Benefit Street Partners LLC | Affiliated entity | |||||||||
Related Party Transaction [Line Items] | |||||||||
Monthly asset management fee | 0.125% | 0.125% | |||||||
Subordinated performance fee, percent that total return exceeds per year | 6% | 6% | |||||||
Percent of excess total return | 15% | 15% | |||||||
Maximum annual subordinated performance fee payable percent of total return | 10% | 10% | |||||||
Benefit Street Partners LLC | Affiliated entity | Fee to acquire and originate real estate debt | |||||||||
Related Party Transaction [Line Items] | |||||||||
Transaction rate | 0.50% |
Related Party Transactions an_4
Related Party Transactions and Arrangements - Amount Contractually Due and Forgiven (Details) - Affiliated entity - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Related Party Transaction [Line Items] | |||||
Total expenses from transactions with related party | $ 10,019 | $ 12,081 | $ 30,880 | $ 30,408 | |
Payable to related party | 16,444 | 16,444 | $ 17,538 | ||
Acquisition expenses | Nonrecurring fees | |||||
Related Party Transaction [Line Items] | |||||
Total expenses from transactions with related party | 362 | 690 | 996 | 1,012 | |
Payable to related party | 373 | 373 | 0 | ||
Administrative services expenses | Nonrecurring fees | |||||
Related Party Transaction [Line Items] | |||||
Total expenses from transactions with related party | 3,001 | 2,980 | 9,402 | 9,532 | |
Payable to related party | 3,001 | 3,001 | 0 | ||
Asset management and subordinated performance fee | Nonrecurring fees | |||||
Related Party Transaction [Line Items] | |||||
Total expenses from transactions with related party | 6,430 | 8,265 | 19,776 | 19,682 | |
Payable to related party | 11,353 | 11,353 | 15,595 | ||
Other related party expenses | Nonrecurring fees | |||||
Related Party Transaction [Line Items] | |||||
Total expenses from transactions with related party | 226 | 146 | 706 | 182 | |
Payable to related party | 1,717 | 1,717 | 1,943 | ||
Related party payables | 1,700 | 1,700 | $ 1,900 | ||
Acquisition fees and expenses, including amount capitalized | Nonrecurring fees | |||||
Related Party Transaction [Line Items] | |||||
Total expenses from transactions with related party | 2,500 | 2,900 | 9,700 | 7,500 | |
Acquisition fees and expenses, amount capitalized | Nonrecurring fees | |||||
Related Party Transaction [Line Items] | |||||
Total expenses from transactions with related party | $ 2,100 | $ 2,200 | $ 8,700 | $ 6,500 |
Share-based Compensation - Narr
Share-based Compensation - Narrative (Details) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2022 USD ($) shares | Sep. 30, 2022 USD ($) shares | |
RSP | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares granted under restricted share plan, maximum percentage of total shares allowed (in shares) | 5% | |
Maximum shares allowed to be granted under restricted share plan (in shares) | shares | 4,000,000 | |
2021 Incentive Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares remaining available for issuance (in shares) | shares | 5,007,893 | 5,007,893 |
Restricted Stock Units (RSUs) | 2021 Incentive Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Compensation expense associated with RSUs | $ | $ 0.7 | $ 1.9 |
Unrecognized estimated compensation expense | $ | $ 6.4 | $ 6.4 |
Weighted average period for recognition | 1 year 7 months 6 days |
Share-based Compensation - Unve
Share-based Compensation - Unvested Restricted Stock Units (Details) - Restricted Stock Units (RSUs) | 9 Months Ended |
Sep. 30, 2022 $ / shares shares | |
Weighted Average Grant Date Fair Value | |
Beginning balance (in dollars per share) | $ / shares | $ 17.88 |
Grants (in dollars per share) | $ / shares | 14.05 |
Forfeitures (in dollars per share) | $ / shares | 0 |
Vested (in dollars per share) | $ / shares | 16.14 |
Ending balance (in dollars per share) | $ / shares | $ 14.06 |
RSP | |
Share Plan | |
Beginning balance (in shares) | 11,184 |
Grants (in shares) | 28,245 |
Forfeitures (in shares) | 0 |
Vested (in shares) | (18,393) |
Ending balance (in shares) | 21,036 |
2021 Incentive Plan | |
Share Plan | |
Beginning balance (in shares) | 0 |
Grants (in shares) | 492,107 |
Forfeitures (in shares) | 0 |
Vested (in shares) | 0 |
Ending balance (in shares) | 492,107 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Financial Instruments Carried at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Assets, at fair value | ||
Real estate securities, available for sale, measured at fair value | $ 74,625 | $ 0 |
Real estate securities, trading, measured at fair value | 252,491 | 4,566,871 |
Commercial mortgage loans, held for sale, measured at fair value | 41,342 | 34,718 |
Derivative instruments, measured at fair value | 3,546 | 436 |
Liabilities, at fair value | ||
Liabilities | 12 | 32,295 |
Fair Value, Measurements, Recurring | ||
Assets, at fair value | ||
Real estate securities, available for sale, measured at fair value | 74,625 | |
Real estate securities, trading, measured at fair value | 252,491 | 4,566,871 |
Commercial mortgage loans, held for sale, measured at fair value | 41,342 | 34,718 |
Other real estate investments, measured at fair value | 2,074 | |
Total assets, at fair value | 372,004 | 4,604,099 |
Liabilities, at fair value | ||
Total liabilities, at fair value | 12 | 32,295 |
Level I | Fair Value, Measurements, Recurring | ||
Assets, at fair value | ||
Real estate securities, available for sale, measured at fair value | 0 | |
Real estate securities, trading, measured at fair value | 0 | 0 |
Commercial mortgage loans, held for sale, measured at fair value | 0 | 0 |
Other real estate investments, measured at fair value | 0 | |
Total assets, at fair value | 0 | 0 |
Liabilities, at fair value | ||
Total liabilities, at fair value | 0 | 0 |
Level II | Fair Value, Measurements, Recurring | ||
Assets, at fair value | ||
Real estate securities, available for sale, measured at fair value | 74,625 | |
Real estate securities, trading, measured at fair value | 252,491 | 4,566,871 |
Commercial mortgage loans, held for sale, measured at fair value | 0 | 0 |
Other real estate investments, measured at fair value | 0 | |
Total assets, at fair value | 330,662 | 4,567,307 |
Liabilities, at fair value | ||
Total liabilities, at fair value | 12 | 32,295 |
Level III | Fair Value, Measurements, Recurring | ||
Assets, at fair value | ||
Real estate securities, available for sale, measured at fair value | 0 | |
Real estate securities, trading, measured at fair value | 0 | 0 |
Commercial mortgage loans, held for sale, measured at fair value | 41,342 | 34,718 |
Other real estate investments, measured at fair value | 2,074 | |
Total assets, at fair value | 41,342 | 36,792 |
Liabilities, at fair value | ||
Total liabilities, at fair value | 0 | 0 |
Credit default swaps | ||
Assets, at fair value | ||
Derivative instruments, measured at fair value | 710 | 0 |
Liabilities, at fair value | ||
Liabilities | 4 | 1,142 |
Credit default swaps | Fair Value, Measurements, Recurring | ||
Assets, at fair value | ||
Derivative instruments, measured at fair value | 0 | |
Liabilities, at fair value | ||
Liabilities | 4 | 1,142 |
Credit default swaps | Level I | Fair Value, Measurements, Recurring | ||
Assets, at fair value | ||
Derivative instruments, measured at fair value | 0 | |
Liabilities, at fair value | ||
Liabilities | 0 | 0 |
Credit default swaps | Level II | Fair Value, Measurements, Recurring | ||
Assets, at fair value | ||
Derivative instruments, measured at fair value | 0 | |
Liabilities, at fair value | ||
Liabilities | 4 | 1,142 |
Credit default swaps | Level III | Fair Value, Measurements, Recurring | ||
Assets, at fair value | ||
Derivative instruments, measured at fair value | 0 | |
Liabilities, at fair value | ||
Liabilities | 0 | 0 |
Interest rate swaps | ||
Assets, at fair value | ||
Derivative instruments, measured at fair value | 2,836 | 312 |
Liabilities, at fair value | ||
Liabilities | 8 | 0 |
Interest rate swaps | Fair Value, Measurements, Recurring | ||
Assets, at fair value | ||
Derivative instruments, measured at fair value | 3,546 | 312 |
Liabilities, at fair value | ||
Liabilities | 8 | |
Interest rate swaps | Level I | Fair Value, Measurements, Recurring | ||
Assets, at fair value | ||
Derivative instruments, measured at fair value | 0 | 0 |
Liabilities, at fair value | ||
Liabilities | 0 | |
Interest rate swaps | Level II | Fair Value, Measurements, Recurring | ||
Assets, at fair value | ||
Derivative instruments, measured at fair value | 3,546 | 312 |
Liabilities, at fair value | ||
Liabilities | 8 | |
Interest rate swaps | Level III | Fair Value, Measurements, Recurring | ||
Assets, at fair value | ||
Derivative instruments, measured at fair value | 0 | 0 |
Liabilities, at fair value | ||
Liabilities | 0 | |
Treasury note futures | ||
Assets, at fair value | ||
Derivative instruments, measured at fair value | 0 | 124 |
Liabilities, at fair value | ||
Liabilities | $ 0 | 0 |
Treasury note futures | Fair Value, Measurements, Recurring | ||
Assets, at fair value | ||
Derivative instruments, measured at fair value | 124 | |
Treasury note futures | Level I | Fair Value, Measurements, Recurring | ||
Assets, at fair value | ||
Derivative instruments, measured at fair value | 0 | |
Treasury note futures | Level II | Fair Value, Measurements, Recurring | ||
Assets, at fair value | ||
Derivative instruments, measured at fair value | 124 | |
Treasury note futures | Level III | Fair Value, Measurements, Recurring | ||
Assets, at fair value | ||
Derivative instruments, measured at fair value | 0 | |
Unsecured debt-related interest rate swap agreements | Fair Value, Measurements, Recurring | ||
Liabilities, at fair value | ||
Liabilities | 31,153 | |
Unsecured debt-related interest rate swap agreements | Level I | Fair Value, Measurements, Recurring | ||
Liabilities, at fair value | ||
Liabilities | 0 | |
Unsecured debt-related interest rate swap agreements | Level II | Fair Value, Measurements, Recurring | ||
Liabilities, at fair value | ||
Liabilities | 31,153 | |
Unsecured debt-related interest rate swap agreements | Level III | Fair Value, Measurements, Recurring | ||
Liabilities, at fair value | ||
Liabilities | $ 0 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Valuation Method Of Level 3 Financial Instruments Measured on a Recurring Basis (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Commercial mortgage loans, held for sale, measured at fair value | $ 41,342 | $ 34,718 |
Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Commercial mortgage loans, held for sale, measured at fair value | 41,342 | 34,718 |
Fair Value, Measurements, Recurring | Level III | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Commercial mortgage loans, held for sale, measured at fair value | 41,342 | 34,718 |
Discounted Cash Flow | Commercial mortgage loans, held for sale, measured at fair value | Fair Value, Measurements, Recurring | Level III | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Commercial mortgage loans, held for sale, measured at fair value | $ 41,342 | 34,718 |
Discounted Cash Flow | Other real estate investments, measured at fair value | Fair Value, Measurements, Recurring | Level III | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate investments, measured at fair value | $ 2,074 | |
Discounted Cash Flow | Weighted Average | Commercial mortgage loans, held for sale, measured at fair value | Fair Value, Measurements, Recurring | Level III | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Yield | 3.40% | 3.40% |
Discounted Cash Flow | Weighted Average | Other real estate investments, measured at fair value | Fair Value, Measurements, Recurring | Level III | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Yield | 10.90% | |
Discounted Cash Flow | Minimum | Commercial mortgage loans, held for sale, measured at fair value | Fair Value, Measurements, Recurring | Level III | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Yield | 3.10% | 3.20% |
Discounted Cash Flow | Minimum | Other real estate investments, measured at fair value | Fair Value, Measurements, Recurring | Level III | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Yield | 9.90% | |
Discounted Cash Flow | Maximum | Commercial mortgage loans, held for sale, measured at fair value | Fair Value, Measurements, Recurring | Level III | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Yield | 7.30% | 4.20% |
Discounted Cash Flow | Maximum | Other real estate investments, measured at fair value | Fair Value, Measurements, Recurring | Level III | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Yield | 11.90% |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments - Changes in the Company's Financial Instruments Classified as Level III (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Total realized and unrealized gain/(loss) included in earnings: | |||
Net accretion | $ 8,780 | $ 4,421 | |
Commercial Mortgage Loans, held for sale, measured at fair value | Level III | Fair Value, Measurements, Recurring | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Beginning balance | 34,718 | 67,649 | $ 67,649 |
Transfers Into Level III | 0 | 0 | |
Total realized and unrealized gain/(loss) included in earnings: | |||
Realized gain/(loss) on sale of commercial mortgage loans, held for sale, and other real estate investments | 4,838 | 24,208 | |
Unrealized gain/(loss) on commercial mortgage loans, held for sale and other real estate investments | (3,678) | 469 | |
Net accretion | 0 | 0 | |
Purchases | 343,096 | 420,673 | |
Sales / paydowns | (337,632) | (478,281) | |
Transfers out of Level III | 0 | 0 | |
Ending balance | 41,342 | 34,718 | |
Other Real Estate Investments, measured at fair value | Level III | Fair Value, Measurements, Recurring | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Beginning balance | 2,074 | $ 2,522 | 2,522 |
Transfers Into Level III | 0 | 0 | |
Total realized and unrealized gain/(loss) included in earnings: | |||
Realized gain/(loss) on sale of commercial mortgage loans, held for sale, and other real estate investments | (33) | 0 | |
Unrealized gain/(loss) on commercial mortgage loans, held for sale and other real estate investments | 4 | (19) | |
Net accretion | 0 | (3) | |
Purchases | 0 | 0 | |
Sales / paydowns | (2,045) | (426) | |
Transfers out of Level III | 0 | 0 | |
Ending balance | $ 0 | $ 2,074 |
Fair Value of Financial Instr_6
Fair Value of Financial Instruments - Financial Instruments Not Measured at Fair Value (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Allowance for credit loss | $ 46,815 | $ 15,827 |
Carrying Amount | Level III | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Commercial mortgage loans, held for investment | 5,328,273 | 4,226,888 |
Collateralized loan obligations | 3,174,530 | 2,162,190 |
Mortgage note payable | 23,998 | 23,998 |
Other financing and loan participation - commercial mortgage loans | 53,167 | 37,903 |
Unsecured debt | 98,670 | 148,594 |
Allowance for credit loss | 46,800 | 15,800 |
Fair Value | Level III | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Commercial mortgage loans, held for investment | 5,331,258 | 4,249,118 |
Collateralized loan obligations | 3,097,531 | 2,181,571 |
Mortgage note payable | 23,998 | 23,998 |
Other financing and loan participation - commercial mortgage loans | 53,167 | 37,903 |
Unsecured debt | $ 73,700 | $ 125,400 |
Derivative Instruments - Narrat
Derivative Instruments - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2022 | Sep. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Net premiums received on derivative instrument assets | $ 0.5 | |
Interest rate swaps | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative, notional amount, additions | $ 1,300 | |
Derivative, average fixed interest rate during period | 1.36% | |
Interest Rate Swap, ARM Portfolio | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative, average fixed interest rate during period | 3.08% | 0.62% |
Derivative, notional amount, terminated | $ 100 | $ 5,500 |
Minimum | Interest rate swaps | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative, term of contract | 18 months | |
Maximum | Interest rate swaps | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative, term of contract | 3 years |
Derivative Instruments - Schedu
Derivative Instruments - Schedule of Outstanding Derivatives (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Derivative [Line Items] | ||
Notional | $ 81,750 | $ 3,796,860 |
Assets | 3,546 | 436 |
Liabilities | 12 | 32,295 |
Credit default swaps | ||
Derivative [Line Items] | ||
Notional | 44,750 | 47,000 |
Assets | 710 | 0 |
Liabilities | 4 | 1,142 |
Interest rate swaps | ||
Derivative [Line Items] | ||
Notional | 37,000 | 3,649,500 |
Assets | 2,836 | 312 |
Liabilities | 8 | 0 |
Notional, asset | 35,200 | |
Notional, liability | 1,800 | |
Interest rate swaps on unsecured debt | ||
Derivative [Line Items] | ||
Notional | 0 | 100,000 |
Assets | 0 | 0 |
Liabilities | 0 | 31,153 |
Treasury note futures | ||
Derivative [Line Items] | ||
Notional | 0 | 360 |
Assets | 0 | 124 |
Liabilities | $ 0 | $ 0 |
Derivative Instruments - Net Re
Derivative Instruments - Net Realized and Unrealized Losses on Derivatives (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Unrealized (Gain)/Loss | $ (1,566) | $ (1,428) | $ 12,824 | $ (374) |
Realized (Gain)/Loss | 1,624 | 1,902 | (57,599) | (357) |
Credit default swaps | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Unrealized (Gain)/Loss | 40 | (111) | (515) | (289) |
Realized (Gain)/Loss | 254 | 32 | 301 | 675 |
Interest rate swaps | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Unrealized (Gain)/Loss | (1,606) | (1,282) | 13,215 | 22 |
Realized (Gain)/Loss | 1,370 | 1,692 | (56,961) | 414 |
Treasury note futures | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Unrealized (Gain)/Loss | 0 | (35) | 124 | (107) |
Realized (Gain)/Loss | 0 | 145 | (939) | (1,479) |
Options | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Unrealized (Gain)/Loss | 0 | 0 | 0 | 0 |
Realized (Gain)/Loss | $ 0 | $ 33 | $ 0 | $ 33 |
Offsetting Assets and Liabili_3
Offsetting Assets and Liabilities - Offsetting Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Offsetting Derivative Assets [Abstract] | ||
Gross Amounts of Recognized Assets | $ 3,546 | $ 436 |
Gross Amounts Offset on the Balance Sheet | 0 | 0 |
Net Amount of Assets Presented on the Balance Sheet | 3,546 | 436 |
Financial Instruments | 0 | 0 |
Cash Collateral | 0 | 0 |
Net Amount | $ 3,546 | $ 436 |
Offsetting Assets and Liabili_4
Offsetting Assets and Liabilities - Offsetting Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Offsetting Derivative Liabilities [Abstract] | ||
Derivative instruments, at fair value, gross amounts of recognized liabilities | $ 12 | $ 32,295 |
Derivative instruments, at fair value, gross amounts offset on the balance sheet | 0 | 0 |
Derivative instruments, at fair value, net amount of liabilities presented on the balance sheet | 12 | 32,295 |
Derivative instruments, at fair value, gross amounts not offset on the balance sheet, financial instruments | 0 | 0 |
Derivative instruments, at fair value, gross amounts not offset on the balance sheet, cash collateral | 68 | 64,393 |
Derivative instruments, at fair value, net amount | 0 | 0 |
Repurchase agreements - commercial mortgage loans | ||
Offsetting Securities Sold under Agreements to Repurchase [Abstract] | ||
Repurchase agreements, gross amounts of recognized liabilities | 699,408 | 1,019,600 |
Repurchase agreements, gross amounts offset on the balance sheet | 0 | 0 |
Repurchase agreements, net amount of liabilities presented on the balance sheet | 699,408 | 1,019,600 |
Repurchase agreements, gross amounts not offset on the balance sheet, financial instruments | 707,900 | 1,460,317 |
Repurchase agreements, gross amounts not offset on the balance sheet, cash collateral | 5,010 | 5,015 |
Repurchase agreements, net amount | 0 | 0 |
Repurchase agreements - real estate securities | ||
Offsetting Securities Sold under Agreements to Repurchase [Abstract] | ||
Repurchase agreements, gross amounts of recognized liabilities | 337,613 | 4,178,784 |
Repurchase agreements, gross amounts offset on the balance sheet | 0 | 0 |
Repurchase agreements, net amount of liabilities presented on the balance sheet | 337,613 | 4,178,784 |
Repurchase agreements, gross amounts not offset on the balance sheet, financial instruments | 373,363 | 4,370,239 |
Repurchase agreements, gross amounts not offset on the balance sheet, cash collateral | 0 | 0 |
Repurchase agreements, net amount | $ 0 | $ 0 |
Segment Reporting (Details)
Segment Reporting (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | |||||||||
Interest income | $ 94,131 | $ 47,747 | $ 239,602 | $ 138,969 | |||||
Revenue from real estate owned | 2,312 | 1,015 | 6,936 | 2,447 | |||||
Interest expense | 46,157 | 11,988 | 101,444 | 35,994 | |||||
Net income/(loss) | 35,258 | $ (25,709) | $ (22,507) | 38,495 | $ 30,010 | $ 30,146 | (12,958) | 98,651 | |
Total assets | 6,178,121 | 6,178,121 | $ 9,474,701 | ||||||
Real Estate Debt and Other Real Estate Investments | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Interest income | 91,097 | 47,166 | 209,585 | 135,945 | |||||
Revenue from real estate owned | 0 | 0 | 0 | 0 | |||||
Interest expense | 43,260 | 11,263 | 92,704 | 34,887 | |||||
Net income/(loss) | 35,778 | 25,056 | 46,306 | 74,745 | |||||
Total assets | 5,551,679 | 5,551,679 | 4,205,883 | ||||||
Real Estate Securities | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Interest income | 1,648 | 0 | 25,424 | 461 | |||||
Revenue from real estate owned | 0 | 0 | 0 | 0 | |||||
Interest expense | 1,779 | 148 | 6,853 | (720) | |||||
Net income/(loss) | (3,309) | (148) | (63,533) | (196) | |||||
Total assets | 398,684 | 398,684 | 5,054,394 | ||||||
TRS | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Interest income | 1,386 | 581 | 4,593 | 2,563 | |||||
Revenue from real estate owned | 0 | 0 | 0 | 0 | |||||
Interest expense | 786 | 232 | 1,123 | 812 | |||||
Net income/(loss) | 2,107 | 3,984 | 1,995 | 13,434 | |||||
Total assets | 87,825 | 87,825 | 72,840 | ||||||
Real Estate Owned | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Interest income | 0 | 0 | 0 | 0 | |||||
Revenue from real estate owned | 2,312 | 1,015 | 6,936 | 2,447 | |||||
Interest expense | 332 | 345 | 764 | 1,014 | |||||
Net income/(loss) | 682 | $ 9,603 | 2,274 | $ 10,667 | |||||
Total assets | $ 139,933 | $ 139,933 | $ 141,584 |
Subsequent Events (Details)
Subsequent Events (Details) $ in Thousands | 1 Months Ended | ||||
Oct. 07, 2022 property | Nov. 09, 2022 property | Sep. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) | Sep. 06, 2018 USD ($) | |
Subsequent Event [Line Items] | |||||
Commercial mortgage loans, held for investment, net | $ 5,281,458 | $ 4,211,061 | |||
Office | Collateralized Mortgage-Backed Securities | |||||
Subsequent Event [Line Items] | |||||
Commercial mortgage loans, held for investment, net | $ 17,900 | ||||
Office | Collateralized Mortgage-Backed Securities | Borrower | |||||
Subsequent Event [Line Items] | |||||
Outstanding loan in maturity default | $ 13,000 | ||||
Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Number of properties securing loan | property | 24 | ||||
Number of properties foreclosed and acquired through litigation | property | 7 |