Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2021 | Jul. 23, 2021 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-36299 | |
Entity Registrant Name | Ladder Capital Corp | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 80-0925494 | |
Entity Address, Address Line One | 345 Park Avenue, | |
Entity Address, City or Town | New York, | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10154 | |
City Area Code | 212 | |
Local Phone Number | 715-3170 | |
Title of 12(b) Security | Class A common stock, $0.001 par value | |
Trading Symbol | LADR | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Smaller Reporting Company | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0001577670 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Class A Common Stock | ||
Entity Common Stock, Shares Outstanding | 126,238,843 | |
Class B Common Stock | ||
Entity Common Stock, Shares Outstanding | 0 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 | |
Assets | |||
Cash and cash equivalents | [1] | $ 1,169,843 | $ 1,254,432 |
Restricted cash | [1] | 115,844 | 29,852 |
Mortgage loan receivables held for investment, net, at amortized cost: | |||
Mortgage loans receivable | [1] | 2,531,048 | 2,354,059 |
Allowance for credit losses | [1] | (35,891) | (41,507) |
Mortgage loan receivables held for sale | [1] | 59,182 | 30,518 |
Real estate securities | [1] | 719,183 | 1,058,298 |
Real estate and related lease intangibles, net | [1] | 948,448 | 985,304 |
Investments in and advances to unconsolidated joint ventures | [1] | 37,819 | 46,253 |
Derivative instruments | [1] | 0 | 299 |
Accrued interest receivable | [1] | 12,767 | 16,088 |
Other assets | [1] | 58,566 | 147,633 |
Total assets | [1] | 5,616,809 | 5,881,229 |
Liabilities | |||
Debt obligations, net | [1] | 3,975,715 | 4,209,864 |
Derivative instruments | 368 | 0 | |
Dividends payable | [1] | 26,955 | 27,537 |
Accrued expenses | [1] | 38,220 | 43,876 |
Other liabilities | [1] | 55,686 | 51,527 |
Total liabilities | [1] | 4,096,944 | 4,332,804 |
Commitments and contingencies (Note 18) | [1] | 0 | 0 |
Equity | |||
Additional paid-in capital | [1] | 1,788,875 | 1,780,074 |
Treasury stock, 610,848 and 474,050 shares, at cost | [1] | (68,593) | (62,859) |
Retained earnings (dividends in excess of earnings) | [1] | (203,714) | (163,717) |
Accumulated other comprehensive income (loss) | [1] | (2,211) | (10,463) |
Total shareholders’ equity | [1] | 1,514,484 | 1,543,162 |
Noncontrolling interests in consolidated joint ventures | [1] | 5,381 | 5,263 |
Total equity | [1] | 1,519,865 | 1,548,425 |
Total liabilities and equity | [1] | 5,616,809 | 5,881,229 |
Class A Common Stock | |||
Equity | |||
Common stock | [1] | $ 127 | $ 127 |
[1] | Includes amounts relating to consolidated variable interest entities. Refer to Note 1 and Note 10. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2021 | Dec. 31, 2020 |
Treasury stock (in shares) | 610,848 | 474,050 |
Class A Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, authorized (in shares) | 600,000,000 | 600,000,000 |
Common stock, issued (in shares) | 126,852,765 | 126,852,765 |
Common stock, outstanding (in shares) | 126,241,917 | 126,378,715 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Net interest income | ||||
Interest income | $ 37,577 | $ 62,096 | $ 76,865 | $ 134,686 |
Interest expense | 45,226 | 68,425 | 91,199 | 119,827 |
Net interest income (expense) | (7,649) | (6,329) | (14,334) | 14,859 |
Provision for (release of) loan loss reserves | (335) | (729) | (4,586) | 25,852 |
Net interest income (expense) after provision for (release of) loan losses | (7,314) | (5,600) | (9,748) | (10,993) |
Other income (loss) | ||||
Real estate operating income | 26,558 | 23,773 | 50,718 | 50,101 |
Sale of loans, net | 3,392 | (744) | 3,392 | 261 |
Realized gain (loss) on securities | 15 | (14,798) | 594 | (11,787) |
Unrealized gain (loss) on equity securities | 0 | 401 | 0 | (132) |
Unrealized gain (loss) on Agency interest-only securities | (48) | 98 | (68) | 174 |
Realized gain (loss) on sale of real estate, net | 19,389 | (1) | 19,389 | 10,528 |
Fee and other income | 2,451 | 3,505 | 5,735 | 5,024 |
Net result from derivative transactions | (3,844) | (813) | 927 | (16,248) |
Earnings (loss) from investment in unconsolidated joint ventures | 237 | 471 | 673 | 912 |
Gain (loss) on extinguishment of debt | 0 | 19,017 | 0 | 21,077 |
Total other income (loss) | 48,150 | 30,909 | 81,360 | 59,910 |
Costs and expenses | ||||
Salaries and employee benefits | 8,477 | 7,001 | 18,011 | 24,023 |
Operating expenses | 4,216 | 6,224 | 8,457 | 12,018 |
Real estate operating expenses | 6,345 | 6,034 | 12,555 | 13,981 |
Fee expense | 2,195 | 1,977 | 3,793 | 3,415 |
Depreciation and amortization | 9,464 | 9,816 | 19,000 | 19,825 |
Total costs and expenses | 30,697 | 31,052 | 61,816 | 73,262 |
Income (loss) before taxes | 10,139 | (5,743) | 9,796 | (24,345) |
Income tax expense (benefit) | (318) | (550) | (1,096) | (5,091) |
Net income (loss) | 10,457 | (5,193) | 10,892 | (19,254) |
Net (income) loss attributable to noncontrolling interests in consolidated joint ventures | (163) | 250 | (403) | (1,269) |
Net (income) loss attributable to noncontrolling interests in Operating Partnership | $ 0 | $ 754 | $ 0 | $ 605 |
Earnings per share: | ||||
Basic (in dollars per share) | $ 0.08 | $ (0.04) | $ 0.08 | $ (0.19) |
Diluted (in dollars per share) | $ 0.08 | $ (0.04) | $ 0.08 | $ (0.19) |
Weighted average shares outstanding: | ||||
Basic (in shares) | 124,048,999 | 106,809,987 | 124,012,683 | 106,569,892 |
Diluted (in shares) | 124,480,487 | 106,809,987 | 124,353,202 | 106,569,892 |
Class A Common Stock | ||||
Costs and expenses | ||||
Net income (loss) attributable to Class A common shareholders | $ 10,294 | $ (4,189) | $ 10,489 | $ (19,918) |
Earnings per share: | ||||
Basic (in dollars per share) | $ 0.08 | $ (0.04) | $ 0.08 | $ (0.19) |
Diluted (in dollars per share) | $ 0.08 | $ (0.04) | $ 0.08 | $ (0.19) |
Weighted average shares outstanding: | ||||
Basic (in shares) | 124,048,999 | 106,809,987 | 124,012,683 | 106,569,892 |
Diluted (in shares) | 124,480,487 | 106,809,987 | 124,353,202 | 106,569,892 |
Dividends per share of Class A common stock (in dollars per share) | $ 0.20 | $ 0.20 | $ 0.40 | $ 0.54 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Net income (loss) | $ 10,457 | $ (5,193) | $ 10,892 | $ (19,254) |
Unrealized gain (loss) on securities, net of tax: | ||||
Unrealized gain (loss) on real estate securities, available for sale | 1,418 | 11,532 | 8,846 | (64,721) |
Reclassification adjustment for (gain) loss included in net income (loss) | (15) | 14,591 | (594) | 12,837 |
Total other comprehensive income (loss) | 1,403 | 26,123 | 8,252 | (51,884) |
Comprehensive income (loss) | 11,860 | 20,930 | 19,144 | (71,138) |
Comprehensive (income) loss attributable to noncontrolling interest in consolidated joint ventures | (163) | 250 | (403) | (1,269) |
Comprehensive income (loss) of combined Class A common shareholders and Operating Partnership unitholders | 11,697 | 21,180 | 18,741 | (72,407) |
Comprehensive (income) loss attributable to noncontrolling interests in operating partnership | 0 | (1,757) | 0 | 5,959 |
Class A Common Stock | ||||
Unrealized gain (loss) on securities, net of tax: | ||||
Comprehensive income (loss) attributable to Class A common shareholders | $ 11,697 | $ 19,423 | $ 18,741 | $ (66,448) |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) shares in Thousands, $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Common StockClass A Common Stock | Common StockClass B Common Stock | Additional Paid- in-Capital | Treasury Stock | Retained Earnings (Dividends in Excess of Earnings) | Retained Earnings (Dividends in Excess of Earnings)Cumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Income (Loss) | Operating Partnership | Consolidated Joint Ventures | |
Beginning Balance (in shares) at Dec. 31, 2019 | 107,509 | 12,160 | ||||||||||
Beginning Balance at Dec. 31, 2019 | $ 1,638,977 | $ (5,797) | $ 108 | $ 12 | $ 1,532,384 | $ (42,699) | $ (35,746) | $ (5,797) | $ 4,218 | $ 172,054 | $ 8,646 | |
Increase Decrease in Stockholders' Equity | ||||||||||||
Contributions | 651 | 651 | ||||||||||
Distributions | (9,996) | (6,332) | (3,664) | |||||||||
Amortization of equity based compensation | 16,738 | 16,738 | ||||||||||
Issuance of Purchase Right | 8,425 | 8,425 | ||||||||||
Purchase of treasury stock (in shares) | (210) | |||||||||||
Purchase of treasury stock | (1,688) | (1,688) | ||||||||||
Re-issuance of treasury stock (in shares) | 1,466 | |||||||||||
Re-issuance of treasury stock | $ 1 | (1) | ||||||||||
Shares acquired to satisfy minimum required federal and state tax withholding on vesting restricted stock and units (in shares) | (505) | |||||||||||
Shares acquired to satisfy minimum required federal and state tax withholding on vesting restricted stock and units | (9,232) | (9,232) | ||||||||||
Forfeitures (in shares) | (24) | |||||||||||
Dividends declared | (58,621) | (58,621) | ||||||||||
Exchange of noncontrolling interest for common stock (in shares) | 6,779 | (6,779) | ||||||||||
Exchange of noncontrolling interest for common stock | 61 | $ 7 | $ (7) | 92,540 | (4,915) | (87,564) | ||||||
Net income (loss) | (19,254) | (19,918) | (605) | 1,269 | ||||||||
Other comprehensive income (loss) | (51,884) | (46,530) | (5,354) | |||||||||
Rebalancing of ownership percentage between Company and Operating Partnership | (916) | 2,147 | (1,231) | |||||||||
Ending Balance (in shares) at Jun. 30, 2020 | 115,015 | 5,381 | ||||||||||
Ending Balance at Jun. 30, 2020 | 1,508,380 | $ 116 | $ 5 | 1,649,170 | (53,619) | (120,082) | (45,080) | 70,968 | 6,902 | |||
Beginning Balance (in shares) at Mar. 31, 2020 | 108,337 | 12,160 | ||||||||||
Beginning Balance at Mar. 31, 2020 | 1,500,827 | $ 109 | $ 12 | 1,546,143 | (52,983) | (94,171) | (65,920) | 160,466 | 7,171 | |||
Increase Decrease in Stockholders' Equity | ||||||||||||
Contributions | 349 | 349 | ||||||||||
Distributions | (2,566) | (2,198) | (368) | |||||||||
Amortization of equity based compensation | 2,712 | 2,712 | ||||||||||
Issuance of Purchase Right | 8,425 | 8,425 | ||||||||||
Purchase of treasury stock (in shares) | (64) | |||||||||||
Purchase of treasury stock | (482) | (482) | ||||||||||
Shares acquired to satisfy minimum required federal and state tax withholding on vesting restricted stock and units (in shares) | (19) | |||||||||||
Shares acquired to satisfy minimum required federal and state tax withholding on vesting restricted stock and units | (154) | (154) | ||||||||||
Forfeitures (in shares) | (18) | |||||||||||
Dividends declared | (21,722) | (21,722) | ||||||||||
Exchange of noncontrolling interest for common stock (in shares) | 6,779 | (6,779) | ||||||||||
Exchange of noncontrolling interest for common stock | 61 | $ 7 | $ (7) | 92,540 | (4,915) | (87,564) | ||||||
Net income (loss) | (5,193) | (4,189) | (754) | (250) | ||||||||
Other comprehensive income (loss) | 26,123 | 23,612 | 2,511 | |||||||||
Rebalancing of ownership percentage between Company and Operating Partnership | (650) | 2,143 | (1,493) | |||||||||
Ending Balance (in shares) at Jun. 30, 2020 | 115,015 | 5,381 | ||||||||||
Ending Balance at Jun. 30, 2020 | 1,508,380 | $ 116 | $ 5 | 1,649,170 | (53,619) | (120,082) | (45,080) | $ 70,968 | 6,902 | |||
Beginning Balance (in shares) at Dec. 31, 2020 | 126,378 | |||||||||||
Beginning Balance at Dec. 31, 2020 | 1,548,425 | [1] | $ 127 | 1,780,074 | (62,859) | (163,717) | (10,463) | 5,263 | ||||
Increase Decrease in Stockholders' Equity | ||||||||||||
Distributions | (285) | (285) | ||||||||||
Amortization of equity based compensation | 8,801 | 8,801 | ||||||||||
Purchase of treasury stock (in shares) | (120) | |||||||||||
Purchase of treasury stock | (1,312) | (1,312) | ||||||||||
Re-issuance of treasury stock (in shares) | 748 | |||||||||||
Re-issuance of treasury stock | (1) | (1) | ||||||||||
Shares acquired to satisfy minimum required federal and state tax withholding on vesting restricted stock and units (in shares) | (437) | |||||||||||
Shares acquired to satisfy minimum required federal and state tax withholding on vesting restricted stock and units | (4,421) | (4,421) | ||||||||||
Forfeitures (in shares) | (327) | |||||||||||
Dividends declared | (50,486) | (50,486) | ||||||||||
Net income (loss) | 10,892 | 10,489 | 403 | |||||||||
Other comprehensive income (loss) | 8,252 | 8,252 | ||||||||||
Ending Balance (in shares) at Jun. 30, 2021 | 126,242 | |||||||||||
Ending Balance at Jun. 30, 2021 | 1,519,865 | [1] | $ 127 | 1,788,875 | (68,593) | (203,714) | (2,211) | 5,381 | ||||
Beginning Balance (in shares) at Mar. 31, 2021 | 126,342 | |||||||||||
Beginning Balance at Mar. 31, 2021 | 1,530,839 | $ 127 | 1,785,350 | (67,495) | (188,763) | (3,614) | 5,234 | |||||
Increase Decrease in Stockholders' Equity | ||||||||||||
Distributions | (16) | (16) | ||||||||||
Amortization of equity based compensation | 3,525 | 3,525 | ||||||||||
Purchase of treasury stock (in shares) | (100) | |||||||||||
Purchase of treasury stock | (1,098) | (1,098) | ||||||||||
Dividends declared | (25,245) | (25,245) | ||||||||||
Net income (loss) | 10,457 | 10,294 | 163 | |||||||||
Other comprehensive income (loss) | 1,403 | 1,403 | ||||||||||
Ending Balance (in shares) at Jun. 30, 2021 | 126,242 | |||||||||||
Ending Balance at Jun. 30, 2021 | $ 1,519,865 | [1] | $ 127 | $ 1,788,875 | $ (68,593) | $ (203,714) | $ (2,211) | $ 5,381 | ||||
[1] | Includes amounts relating to consolidated variable interest entities. Refer to Note 1 and Note 10. |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | ||
Cash flows from operating activities: | |||
Net income (loss) | $ 10,892 | $ (19,254) | |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||
(Gain) loss on extinguishment of debt | 0 | (21,077) | |
Depreciation and amortization | 19,000 | 19,825 | |
Unrealized (gain) loss on derivative instruments | 667 | 187 | |
Unrealized (gain) loss on equity securities and investment in mutual fund | 0 | 132 | |
Unrealized (gain) loss on Agency interest-only securities | 68 | (174) | |
Provision for (release of) loan loss reserves | (4,586) | 25,852 | |
Amortization of equity based compensation | 8,801 | 16,738 | |
Amortization of deferred financing costs included in interest expense | 10,044 | 7,705 | |
Amortization of premium on mortgage loan financing | (662) | (587) | |
Amortization of above- and below-market lease intangibles | (963) | (1,187) | |
Amortization of premium/(accretion) of discount and other fees on loans | (5,707) | (8,917) | |
Amortization of premium/(accretion) of discount and other fees on securities | 83 | 443 | |
Realized (gain) loss on sale of mortgage loan receivables held for sale | (3,392) | (6,926) | |
Realized (gain) loss on sale of mortgage loan receivables held for investment | 0 | 6,665 | |
Realized (gain) loss on disposition of loan via foreclosure | 26 | 51 | |
Realized (gain) loss on securities | (594) | 12,512 | |
Realized (gain) loss on sale of real estate, net | (19,389) | (10,528) | |
Realized gain on sale of derivative instruments | 0 | (211) | |
(Income) loss from investments in unconsolidated joint ventures in excess of distributions received | (673) | (912) | |
Insurance proceeds for remediation work due to property damage | 1,345 | 0 | |
Insurance proceeds used for remediation work due to property damage | (628) | 0 | |
Origination of mortgage loan receivables held for sale | (76,404) | (212,845) | |
Repayment of mortgage loan receivables held for sale | 80 | 292 | |
Proceeds from sales of mortgage loan receivables held for sale | 51,052 | 255,827 | |
Deferred tax asset (liability) | (8) | 9,914 | |
Changes in operating assets and liabilities: | |||
Accrued interest receivable | 3,148 | 2,284 | |
Other assets | (314) | (15,361) | |
Accrued expenses and other liabilities | (1,634) | (16,900) | |
Net cash provided by (used in) operating activities | (9,748) | 43,453 | |
Cash flows from investing activities: | |||
Origination of mortgage loan receivables held for investment | (795,716) | (334,347) | |
Purchases of mortgage loan receivables held for investment | 0 | 0 | |
Repayment of mortgage loan receivables held for investment | 603,006 | 437,525 | |
Proceeds from sale of mortgage loan receivables held for investment, at amortized cost | 46,557 | 165,364 | |
Purchases of real estate securities | (101,358) | (438,546) | |
Repayment of real estate securities | 106,253 | 63,032 | |
Basis recovery of Agency interest-only securities | 3,678 | 3,853 | |
Proceeds from sales of real estate securities | 339,238 | 532,460 | |
Purchases of real estate | 0 | (6,239) | |
Capital improvements of real estate | (1,619) | (1,980) | |
Proceeds from sale of real estate | 82,482 | 11,426 | |
Capital distribution from investment in unconsolidated joint ventures | 9,107 | 426 | |
Proceeds from sale of FHLB stock | 18,040 | 0 | |
Purchase of derivative instruments | 0 | (111) | |
Sale of derivative instruments | 0 | 446 | |
Property insurance proceeds | 634 | 0 | |
Net cash provided by (used in) investing activities | 310,302 | 433,309 | |
Cash flows from financing activities: | |||
Deferred financing costs paid | (10,107) | (17,370) | |
Proceeds from borrowings under debt obligations | 3,153,332 | 8,046,797 | |
Repayment of borrowings under debt obligations | (3,385,290) | (7,902,356) | |
Cash dividends paid to Class A common shareholders | (51,068) | (73,735) | |
Payment of liability assumed in exchange for shares for the minimum withholding taxes on vesting restricted stock | (4,421) | (9,232) | |
Purchase of treasury stock | (1,312) | (1,688) | |
Issuance of purchase right | 0 | 8,425 | |
Net cash provided by (used in) financing activities | (299,151) | 41,496 | |
Net increase (decrease) in cash, cash equivalents and restricted cash | 1,403 | 518,258 | |
Cash, cash equivalents and restricted cash at beginning of period | 1,284,284 | 355,746 | |
Cash, cash equivalents and restricted cash at end of period | 1,285,687 | 874,004 | |
Supplemental information: | |||
Cash paid for interest, net of amounts capitalized | 86,254 | 98,220 | |
Cash paid (received) for income taxes | 235 | (38) | |
Non-cash investing and financing activities: | |||
Securities and derivatives sold, not settled | 10 | 5 | |
Repayment in transit of mortgage loans receivable held for investment (other assets) | 414 | 9,078 | |
Settlement of mortgage loan receivable held for investment by real estate, net | (43,129) | (25,177) | |
Real estate acquired in settlement of mortgage loan receivable held for investment, net | 43,750 | 25,435 | |
Net settlement of sale of real estate, subject to debt - real estate | 0 | (19,098) | |
Net settlement of sale of real estate, subject to debt - debt obligations | 0 | 19,098 | |
Exchange of noncontrolling interest for common stock | 0 | 87,571 | |
Change in deferred tax asset related to exchanges of noncontrolling interest for common stock | 0 | 61 | |
Rebalancing of ownership percentage between Company and Operating Partnership | 0 | (1,231) | |
Dividends declared, not paid | 26,955 | 23,583 | |
Cash and cash equivalents | 1,169,843 | [1] | 826,059 |
Restricted cash | 115,844 | 47,945 | |
Total cash, cash equivalents and restricted cash shown in the consolidated statement of cash flows | 1,285,687 | 874,004 | |
Consolidated Joint Venture | |||
Cash flows from financing activities: | |||
Capital distributed to noncontrolling interests | (285) | (3,664) | |
Capital contributed by noncontrolling interests in consolidated joint ventures | 0 | 651 | |
Operating Partnership | |||
Cash flows from financing activities: | |||
Capital distributed to noncontrolling interests | 0 | (6,332) | |
Equity Securities | |||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||
Unrealized (gain) loss on equity securities and investment in mutual fund | 0 | 132 | |
Mutual Fund | |||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||
Unrealized (gain) loss on equity securities and investment in mutual fund | $ 0 | $ (95) | |
[1] | Includes amounts relating to consolidated variable interest entities. Refer to Note 1 and Note 10. |
ORGANIZATION AND OPERATIONS
ORGANIZATION AND OPERATIONS | 6 Months Ended |
Jun. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND OPERATIONS | 1. ORGANIZATION AND OPERATIONS Ladder Capital Corp is an internally-managed real estate investment trust (“REIT”) that is a leader in commercial real estate finance. We originate and invest in a diverse portfolio of commercial real estate and real estate-related assets, focusing on senior secured assets. Our investment activities include: (i) our primary business of originating senior first mortgage fixed and floating rate loans collateralized by commercial real estate with flexible loan structures; (ii) investing in investment grade securities secured by first mortgage loans on commercial real estate; and (iii) owning and operating commercial real estate, including net leased commercial properties. Ladder Capital Corp, as the general partner of Ladder Capital Finance Holdings LLLP (“LCFH” or the “Operating Partnership”), operates the Ladder Capital business through LCFH and its subsidiaries. As of June 30, 2021, Ladder Capital Corp has a 100.0% economic interest in LCFH and controls the management of LCFH as a result of its ability to appoint its board members. Accordingly, Ladder Capital Corp consolidates the financial results of LCFH and its subsidiaries. In addition, Ladder Capital Corp, through certain subsidiaries which are treated as taxable REIT subsidiaries (each a “TRS”), is indirectly subject to U.S. federal, state and local income taxes. Other than such indirect U.S. federal, state and local income taxes, there are no material differences between Ladder Capital Corp’s consolidated financial statements and LCFH’s consolidated financial statements. Ladder Capital Corp was formed as a Delaware corporation on May 21, 2013. The Company conducted its initial public offering (“IPO”) which closed on February 11, 2014. The Company used the net proceeds from the IPO to purchase newly issued limited partnership units (“LP Units”) from LCFH. In connection with the IPO, Ladder Capital Corp also became a holding corporation and the general partner of, and obtained a controlling interest in, LCFH. Ladder Capital Corp’s only business is to act as the general partner of LCFH, and, as such, Ladder Capital Corp indirectly operates and controls all of the business and affairs of LCFH and its subsidiaries. The IPO transactions described herein are referred to as the “IPO Transactions.” COVID-19 Impact on the Organization On March 11, 2020, the World Health Organization declared the novel strain of coronavirus (“COVID-19”) a global pandemic and recommended containment and mitigation measures worldwide. We continue to actively manage the liquidity and operations of the Company in light of the market conditions and the overall financial impact of COVID-19 across most industries in the United States. In view of the ongoing uncertainty related to the duration of the pandemic, its ultimate impact on our revenues, profitability and financial position remains difficult to assess at this time. Refer to the Notes to the Consolidated Financial Statements for further disclosure on the current and potential impact of COVID-19 on our business. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | 2. SIGNIFICANT ACCOUNTING POLICIES Basis of Accounting and Principles of Consolidation The accompanying consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). In the opinion of management, the unaudited financial information for the interim periods presented in this report reflects all normal and recurring adjustments necessary for a fair statement of results of operations, financial position and cash flows. The interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2020, which are included in the Annual Report, as certain disclosures that would substantially duplicate those contained in the audited consolidated financial statements have not been included in this interim report. Operating results for interim periods are not necessarily indicative of operating results for an entire fiscal year. The consolidated financial statements include the Company’s accounts and those of its subsidiaries which are majority-owned and/or controlled by the Company and variable interest entities for which the Company has determined itself to be the primary beneficiary, if any. All significant intercompany transactions and balances have been eliminated. Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 810 — Consolidation (“ASC 810”), provides guidance on the identification of entities for which control is achieved through means other than voting rights (“variable interest entities” or “VIEs”) and the determination of which business enterprise, if any, should consolidate the VIEs. Generally, the consideration of whether an entity is a VIE applies when either: (1) the equity investors (if any) lack one or more of the essential characteristics of a controlling financial interest; (2) the equity investment at risk is insufficient to finance that entity’s activities without additional subordinated financial support; or (3) the equity investors have voting rights that are not proportionate to their economic interests and the activities of the entity involve or are conducted on behalf of an investor with a disproportionately small voting interest. The Company consolidates VIEs in which it is considered to be the primary beneficiary. The primary beneficiary is the entity that has both of the following characteristics: (1) the power to direct the activities that, when taken together, most significantly impact the VIE’s performance; and (2) the obligation to absorb losses and right to receive the returns from the VIE that would be significant to the VIE. See Note 10, Consolidated Variable Interest Entities, for further information on the Company’s consolidated variable interest entities. Provision for Loan Losses The Company uses a current expected credit loss model (“CECL”) for estimating the provision for loan losses on its loan portfolio. The CECL model requires the consideration of possible credit losses over the life of an instrument and includes a portfolio-based component and an asset-specific component. In compliance with the CECL reporting requirements, the Company supplemented its existing credit monitoring and management processes with additional processes to support the calculation of the CECL reserves. As part of that effort, the Company has engaged a third-party service provider to provide market data and a credit loss model. The credit loss model is a forward-looking, econometric, commercial real estate (“CRE”) loss forecasting tool. It is comprised of a probability of default (“PD”) model and a loss given default (“LGD”) model that, layered together with user’s loan-level data, selected forward-looking macroeconomic variables, and pool-level mean loss rates, produces life of loan expected losses (“EL”) at the loan and portfolio level. Where management has determined that the credit loss model does not fully capture certain external factors, including portfolio trends or loan-specific factors, a qualitative adjustment to the reserve, is recorded. The CECL model was implemented in 2020. The asset-specific reserve component relates to reserves for losses on individually impaired loans. The Company evaluates each loan for impairment at least quarterly. Impairment occurs when it is deemed probable that the Company will not be able to collect all amounts due according to the contractual terms of the loan. If the loan is considered to be impaired, an allowance is recorded to reduce the carrying value of the loan to the present value of the expected future cash flows discounted at the loan’s effective rate or the fair value of the collateral, less the estimated costs to sell, if recovery of the Company’s investment is expected solely from the collateral. The Company may use the direct capitalization rate valuation methodology or the sales comparison approach to estimate the fair value of the collateral for such loans and in certain cases will obtain external appraisals and take into account potential sale bids. Determining fair value of the collateral may take into account a number of assumptions including, but not limited to, cash flow projections, market capitalization rates, discount rates and data regarding recent comparable sales of similar properties. Such assumptions are generally based on current market conditions and are subject to economic and market uncertainties. The Company’s loans are typically collateralized by real estate directly or indirectly. As a result, the Company regularly evaluates the extent and impact of any credit deterioration associated with the performance and/or value of the underlying collateral property as well as the financial and operating capability of the borrower/sponsor on a loan-by-loan basis. Specifically, a property’s operating results and any cash reserves are analyzed and used to assess (i) whether cash flow from operations is sufficient to cover the debt service requirements currently and into the future, (ii) the ability of the borrower to refinance the loan at maturity, and/or (iii) the property’s liquidation value. The Company also evaluates the financial wherewithal of any loan guarantors as well as the borrower’s competency in managing and operating the properties. In addition, the Company considers the overall economic environment, real estate sector, and geographic submarket in which the collateral property is located. Such impairment analyses are completed and reviewed by asset management and underwriting personnel, who utilize various data sources, including (i) periodic financial data such as property occupancy, tenant profile, rental rates, operating expenses, the borrowers’ business plan, and capitalization and discount rates, (ii) site inspections, and (iii) current credit spreads and other market data and ultimately presented to management for approval. A loan is also considered impaired if its terms are modified in a troubled debt restructuring (“TDR”). A TDR occurs when a concession is granted and the debtor is experiencing financial difficulties. Impairments on TDR loans are generally measured based on the present value of expected future cash flows discounted at the effective interest rate of the original loans. Generally, when granting concessions, the Company will seek to protect its position by requiring incremental pay downs, additional collateral or guarantees and, in some cases, lookback features or equity interests to offset concessions granted should conditions impacting the loan improve. The Company’s determination of credit losses is impacted by TDRs whereby loans that have gone through TDRs are considered impaired and are assessed for specific reserves. Loans previously restructured under TDRs that subsequently default are reassessed to incorporate the Company’s current assumptions on expected cash flows and additional provision expense is recorded to the extent necessary. The Company designates non-accrual loans generally when (i) the principal or coupon interest components of loan payments become 90-days past due or (ii) in the opinion of the Company, it is doubtful the Company will be able to collect all amounts due according to the contractual terms of the loan. Interest income on non-accrual loans in which the Company reasonably expects a full recovery of the loan’s outstanding principal balance is recognized when received in cash. Otherwise, income recognition will be suspended and any cash received will be applied as a reduction to the amortized cost. A non-accrual loan is returned to accrual status at such time as the loan becomes contractually current and future principal and coupon interest are reasonably assured to be received in accordance with the contractual loan terms. A loan will be written off when management has determined it is no longer realizable and deemed non-recoverable. Reclassifications The Company reclassified its FHLB (as defined below) stock into other assets as of January 1, 2021, as such, the amount of $31.0 million from December 31, 2020 was reclassified into other assets on the Consolidated Balance Sheet. As of June 30, 2021, the book value of our investment in FHLB Stock was $13.0 million. Recently Adopted Accounting Pronouncements In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, (“ASU 2020-04”). ASU 2020-04 provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions that reference the London Interbank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued because of reference rate reform. ASU 2020-04 is effective upon issuance of ASU 2020-04 for contract modifications and hedging relationships on a prospective basis. While the Company is currently assessing the impact of ASU 2020-04, the Company does not expect the adoption to have a material impact on the Company’s consolidated financial statements. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 815), (“ASU 2019-12”). ASU 2019-12 simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. ASU 2019-12 also improves the consistent application of, and simplifies, GAAP for other areas of Topic 740 by clarifying and amending existing guidance. The standard is effective for all entities for financial statements issued for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. The adoption of ASU 2019-12 did not have a material impact on the Company’s consolidated financial statements. In October 2020, the FASB issued ASU 2020-08, Codification Improvements to Subtopic 310-20, Receivables–Nonrefundable Fees and Other Costs, (“ASU 2020-08”) . This ASU clarifies that an entity should reevaluate whether a callable debt security is within the scope of ASC paragraph 310-20-35-33 for each reporting period. The guidance is effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. All entities should apply ASU 2020-08 on a prospective basis as of the beginning of the period of adoption for existing or newly purchased callable debt securities. The adoption of ASU 2020-08 did not have a material impact on the consolidated financial statements. Recent Accounting Pronouncements Pending Adoption Any new accounting standards not disclosed above that have been issued or proposed by FASB and that do not require adoption until a future date are not expected to have a material impact on the consolidated financial statements upon adoption. |
MORTGAGE LOAN RECEIVABLES
MORTGAGE LOAN RECEIVABLES | 6 Months Ended |
Jun. 30, 2021 | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Abstract] | |
MORTGAGE LOAN RECEIVABLES | 3. MORTGAGE LOAN RECEIVABLES June 30, 2021 ($ in thousands) Outstanding Carrying Weighted Remaining Mortgage loan receivables held for investment, net, at amortized cost: First mortgage loans $ 2,430,910 $ 2,414,167 5.94 % 1.83 Mezzanine loans 117,103 116,881 10.91 % 2.56 Total mortgage loans 2,548,013 2,531,048 6.17 % 1.86 Allowance for credit losses N/A (35,891) Total mortgage loan receivables held for investment, net, at amortized cost 2,548,013 2,495,157 Mortgage loan receivables held for sale: First mortgage loans 59,198 59,182 4.25 % 9.81 Total $ 2,607,211 $ 2,554,339 6.12 % 2.04 (1) Includes the impact from interest rate floors. June 30, 2021 LIBOR rates are used to calculate weighted average yield for floating rate loans. (2) Excludes non-accrual loans of $129.5 million. Refer to “Non-Accrual Status” below for further details. As of June 30, 2021, $2.1 billion, or 84.3%, of the outstanding face amount of our mortgage loan receivables held for investment, net, at amortized cost, were at variable interest rates, linked to LIBOR. Of this $2.1 billion, 100% of these variable interest rate mortgage loan receivables were subject to interest rate floors. As of June 30, 2021, $59.2 million, or 100%, of the outstanding face amount of our mortgage loan receivables held for sale were at fixed interest rates. December 31, 2020 ($ in thousands) Outstanding Carrying Weighted Remaining Mortgage loan receivables held for investment, net, at amortized cost: First mortgage loans $ 2,243,639 $ 2,232,749 6.50 % 1.00 Mezzanine loans 121,565 121,310 10.83 % 2.42 Total mortgage loans 2,365,204 2,354,059 6.65 % 1.07 Allowance for credit losses N/A (41,507) Total mortgage loan receivables held for investment, net, at amortized cost 2,365,204 2,312,552 Mortgage loan receivables held for sale: First mortgage loans 30,478 30,518 4.05 % 9.18 Total $ 2,395,682 $ 2,343,070 6.74 % 1.23 (1) Includes the impact from interest rate floors. December 31, 2020 LIBOR rates are used to calculate weighted average yield for floating rate loans. (2) Excludes non-accrual loans of $175.0 million. Refer to “Non-Accrual Status” below for further details. As of December 31, 2020, $1.9 billion, or 82.0%, of the outstanding face amount of our mortgage loan receivables held for investment, net, at amortized cost, were at variable interest rates, linked to LIBOR. Of this $1.9 billion, 100% of these variable rate mortgage loan receivables were subject to interest rate floors. As of December 31, 2020, $30.5 million, or 100%, of the outstanding face amount of our mortgage loan receivables held for sale were at fixed interest rates. For the six months ended June 30, 2021 and 2020, the activity in our loan portfolio was as follows ($ in thousands): Mortgage loan receivables held for investment, net, at amortized cost: Mortgage loans receivable Allowance for credit losses Mortgage loan Balance, December 31, 2020 $ 2,354,059 $ (41,507) $ 30,518 Origination of mortgage loan receivables 795,717 — 76,404 Repayment of mortgage loan receivables (532,878) — (80) Proceeds from sales of mortgage loan receivables (46,557) — (51,052) Non-cash disposition of loans via foreclosure(1) (45,000) — — Sale of loans, net — — 3,392 Accretion/amortization of discount, premium and other fees 5,707 — — Release of asset-specific loan loss provision via foreclosure(1) — 1,150 — Provision for current expected credit loss, net (impact to earnings) — 4,466 — Balance, June 30, 2021 $ 2,531,048 $ (35,891) $ 59,182 (1) Refer to Note 5 Real Estate and Related Lease Intangibles, Net for further detail on foreclosure of real estate. Mortgage loan receivables held for investment, net, at amortized cost: Mortgage loans receivable Allowance for credit losses Mortgage loan Balance, December 31, 2019 $ 3,257,036 $ (20,500) $ 122,325 Origination of mortgage loan receivables 334,347 — 212,845 Repayment of mortgage loan receivables (446,080) — (292) Proceeds from sales of mortgage loan receivables (165,364) — (255,827) Non-cash disposition of loan via foreclosure(1) (27,107) — — Sale of loans, net (6,665) — 6,926 Accretion/amortization of discount, premium and other fees 8,917 — — Release of asset-specific loan loss provision via foreclosure(1) — 2,000 — Provision expense for current expected credit loss(implementation impact)(2) — (4,964) — Provision expense for current expected credit loss (impact to earnings)(2) — (17,638) — Additional asset-specific reserve — (8,000) — Balance, June 30, 2020 $ 2,955,084 $ (49,102) $ 85,977 (1) Refer to Note 5, Real Estate and Related Lease Intangibles, Net for further detail on real estate acquired via foreclosure. (2) During the three months ended March 31, 2020, the initial impact of the implementation of the CECL accounting standard as of January 1, 2020 is recorded against retained earnings. Subsequent remeasurement thereafter, including the period to date change for the six months ended June 30, 2020, is accounted for as provision expense for current expected credit loss in the consolidated statements of income. As of June 30, 2021 and December 31, 2020, there were $0.5 million of unamortized discounts included in our mortgage loan receivables held for investment, net, at amortized cost, on our consolidated balance sheets. Allowance for Credit Losses and Non-Accrual Status ($ in thousands) Three Months Ended June 30, Six Months Ended June 30, Allowance for Credit Losses 2021 2020 2021 2020 Allowance for credit losses at beginning of period $ 36,241 $ 49,457 $ 41,507 $ 20,500 Provision for current expected credit loss (implementation impact) — — — 4,964 (1) Provision for current expected credit loss, net (impact to earnings)(2) (350) (355) (4,466) 25,638 Foreclosure of loans subject to asset-specific reserve — — (1,150) (2,000) Allowance for credit losses at end of period $ 35,891 $ 49,102 $ 35,891 $ 49,102 (1) Additional provisions for current expected credit losses related to implementation of $0.8 million and $22.0 thousand related to unfunded commitments and held-to-maturity securities, respectively, were recorded on January 1, 2020 at implementation of CECL. (2) For the three months ended June 30, 2021 and 2020 the total provision release consisted of $0.4 million in general reserves and no asset-specific reserves. Non-Accrual Status June 30, 2021 December 31, 2020 Carrying value of loans on non-accrual status, net of asset-specific reserve $ 129,468 (1)(2) $ 175,022 (3) (1) Represents two of the Company’s loans, which were originated simultaneously as part of a single transaction and had a combined carrying value of $24.2 million, two loans with a combined carrying value of $26.3 million, one loan with a carrying value of $36.4 million, one loan with a carrying value of $12.1 million, and one loan with a carrying value of $30.5 million. (2) Subsequent to June 30, 2021, the Company resolved one of its non-accrual loans with a carrying value of $12.1 million. The Company received a full pay-off which included all accrued interest and fees. (3) Represents two of the Company’s loans, which were originated simultaneously as part of a single transaction and had a combined carrying value of $24.2 million, two loans with a combined carrying value of $27.1 million, one loan with a carrying value of $36.4 million, one loan with a carrying value of $13.0 million, one loan with a carrying value of $30.6 million and one loan with a carrying value of $43.8 million which was foreclosed on and sold in 2021. Current Expected Credit Loss (“CECL”) On January 1, 2020, the Company recorded a CECL Reserve of $11.6 million, which equated to 0.36% of $3.2 billion carrying value of its held for investment loan portfolio. This reserve excluded three loans that previously had an aggregate of $14.7 million of asset-specific reserves and a carrying value of $39.8 million as of January 1, 2020. Upon adoption, the aggregated CECL Reserve reduced total shareholder’s equity by $5.8 million. As of June 30, 2021, the Company has a $36.3 million allowance for current expected credit losses, of which $35.9 million pertains to mortgage loan receivables. This allowance includes three loans that have an aggregate of $20.2 million of asset-specific reserves against a carrying value of $70.7 million as of June 30, 2021. The total change in reserve for provision for the six months ended June 30, 2021 was a release of $4.6 million. The release represents a decline in the general reserve of loans held for investment of $4.5 million and the release on unfunded loan commitments of $0.1 million. The release during the year is primarily due to an improvement in macro economic assumptions. For additional information, refer to “Allowance for Credit Losses and Non-Accrual Status” in Note 3, Mortgage Loan Receivables, to the consolidated financial statements. The Company has concluded that none of its loans, other than the three loans discussed below, are individually impaired as of June 30, 2021. Loan Portfolio by Geographic Region, Property Type and Vintage (amortized cost $ in thousands) June 30, December 31, Geographic Region 2021 2020 Northeast $ 688,885 $ 707,485 Southwest 435,247 437,153 South 584,708 313,759 Midwest 336,273 462,602 West 415,284 316,620 Subtotal loans 2,460,397 2,237,619 Individually impaired loans(1) 70,651 116,440 Total loans $ 2,531,048 $ 2,354,059 (1) Refer to “ Individually Impaired Loans ” below for further detail. Management’s method for monitoring credit is the performance of a loan. A loan is impaired or not impaired based on the expectation that all amounts contractually due under a loan will be collected when due. The primary credit quality indicator management utilizes to assess its current expected credit loss reserve is by viewing Ladder’s loan portfolio by collateral type. The following tables as of June 30, 2021 and December 31, 2020, summarize the amortized cost of the loan portfolio by property type ($ in thousands): Amortized Cost Basis by Origination Year as of June 30, 2021 Property Type 2021 2020 2019 2018 2017 and Earlier Total Office $ 261,182 $ 29,548 $ 187,005 $ 206,888 $ 118,911 $ 803,534 Multifamily 175,376 15,083 196,426 13,451 21,085 421,421 Mixed Use 193,744 79,254 147,437 — — 420,435 Hospitality — — 43,621 139,777 111,089 294,487 Retail 29,395 — 85,268 — 36,514 151,177 Manufactured Housing 59,641 — 43,383 11,741 3,951 118,716 Industrial — — 105,283 — 6,453 111,736 Other 20,802 — 44,842 30,033 — 95,677 Self-Storage 43,214 — — — — 43,214 Subtotal loans 783,354 123,885 853,265 401,890 298,003 2,460,397 Individually Impaired loans (1) — — — — 70,651 70,651 Total loans (2) $ 783,354 $ 123,885 $ 853,265 $ 401,890 $ 368,654 $ 2,531,048 Amortized Cost Basis by Origination Year as of December 31, 2020 Property Type 2020 2019 2018 2017 2016 and Earlier Total Office $ — $ 196,610 $ 249,330 $ 83,673 $ 50,935 $ 580,548 Multifamily 65,537 260,254 44,665 24,406 — 394,862 Hospitality — 43,000 139,394 67,307 78,694 328,395 Other 31,217 131,434 77,484 — — 240,135 Mixed Use 106,537 101,704 — 13,268 — 221,509 Retail — 110,492 — — 65,734 176,226 Industrial 46,130 114,630 — — 6,461 167,221 Manufactured Housing 4,553 57,305 11,718 — 3,961 77,537 Self-Storage — 35,986 15,200 — — 51,186 Subtotal loans 253,974 1,051,415 537,791 188,654 205,785 2,237,619 Individually Impaired loans (1) — — 44,952 — 71,488 116,440 Total loans (3) $ 253,974 $ 1,051,415 $ 582,743 $ 188,654 $ 277,273 $ 2,354,059 (1) Refer to “ Individually Impaired Loans” below for further detail. (2) Not included above is $11.9 million of accrued interest receivable on all loans at June 30, 2021. (3) Not included above is $14.5 million of accrued interest receivable on all loans at December 31, 2020. Individually Impaired Loans As of June 30, 2021, two loans with an amortized cost basis of $26.9 million and a combined carrying value of $24.2 million were impaired and on non-accrual status. The loans are collateralized by a mixed use property in the Northeast region, which were originated simultaneously as part of a single transaction and are directly and indirectly secured by the same property. In assessing these collateral-dependent loans for impairment, the most significant consideration is the fair value of the underlying real estate collateral, which includes an in-place long-dated retail lease. The value of such property is most significantly affected by the contractual lease terms and the appropriate market capitalization rates, which are driven by the property’s market strength, the general interest rate environment and the retail tenant’s creditworthiness. In view of these considerations, the Company uses a direct capitalization rate valuation methodology to calculate the fair value of the underlying real estate collateral. The Company previously recorded an asset-specific provision for loss in 2018 on one of these loans, with a carrying value of $5.9 million, of $2.7 million to reduce the carrying value of the two loans collectively to the fair value of the property less the cost to foreclose and sell the property utilizing direct capitalization rates of 4.70% to 5.00%. As of June 30, 2021, the Company determined the loan was adequately provisioned based on the application of direct capitalization rates of 4.75% to 5.20%. In 2018, a loan secured by a mixed-use property in the Northeast region, with a carrying value of $45.0 million, was determined to be impaired and a reserve of $10.0 million was recorded to reduce the carrying value of the loan to the estimated fair value of the collateral, less the estimated costs to sell. In 2018, the loan experienced a maturity default and its terms were modified in a troubled debt restructuring (“TDR”), which provided for, among other things, the restructuring of the Company’s existing $45.0 million first mortgage loan into a $35.0 million A-Note and a $10.0 million B-Note. The reserve of $10.0 million was applied to the B-Note and the B-Note was placed on non-accrual status. For the three months ended March 31, 2020, management determined that the A-Note was impaired, reflecting a decline in collateral value due to: (i) new information available during the three months ended March 31, 2020 regarding two recent comparable sales and (ii) a change in market conditions driven by COVID-19 as capital flow to the tertiary markets shifted. As a result, on March 31, 2020, the Company recorded an asset-specific provision for loss on the A-Note of $7.5 million to reduce the carrying value of this loan to the fair value of the property less the cost to foreclose and sell the property utilizing direct capitalization rates of 7.50% to 8.60%. The Company placed the A-Note on non-accrual status as of March 31, 2020. As of June 30, 2021, the amortized cost basis was $43.8 million, and after impairment of the A-Note and the B-Note of $17.5 million, the carrying value was $26.3 million. As of June 30, 2021, the Company determined the loan was adequately provisioned based on the application of direct capitalization rates of 8.25% to 8.75%. As of June 30, 2021, there were no unfunded commitments associated with modified loans considered TDRs. These non-recurring fair values are considered Level 3 measurements in the fair value hierarchy. Other Loans on Non-Accrual Status As of June 30, 2021, three other loans were on non-accrual status, with a combined carrying value of $79.0 million. The Company put such loans on non-accrual status in the fourth quarter of 2020 and performed a review of the collateral for the loans. The review consisted of conversations with market participants familiar with the property locations as well as reviewing market data and comparable properties. There are no other loans on non-accrual status other than those discussed in Individually Impaired Loans and Other Loans on Non-Accrual Status above as of June 30, 2021. Subsequent to June 30, 2021, the Company resolved one of its non-accrual loans with a carrying value of $12.1 million. The Company received a full pay-off which included all accrued interest and fees. |
REAL ESTATE SECURITIES
REAL ESTATE SECURITIES | 6 Months Ended |
Jun. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
REAL ESTATE SECURITIES | 4. REAL ESTATE SECURITIES The Company invests in primarily AAA-rated real estate securities, typically front pay securities, with relatively short duration and significant subordination. Market conditions due to the COVID-19 pandemic and the resulting economic disruption have broadly impacted the commercial real estate sector, including real estate securities. We continue to actively monitor the impacts of COVID-19 on our securities portfolio. Commercial mortgage-backed securities (“CMBS”), CMBS interest-only securities, Agency securities, Government National Mortgage Association (“GNMA”) construction securities, GNMA permanent securities and corporate bonds are classified as available-for-sale and reported at fair value with changes in fair value recorded in the current period in other comprehensive income. GNMA and Federal Home Loan Mortgage Corp (“FHLMC”) securities (collectively, “Agency interest-only securities”) are recorded at fair value with changes in fair value recorded in current period earnings. Equity securities are reported at fair value with changes in fair value recorded in current period earnings. The following is a summary of the Company’s securities at June 30, 2021 and December 31, 2020 ($ in thousands): June 30, 2021 Gross Unrealized Weighted Average Asset Type Outstanding Amortized Cost Basis Gains Losses Carrying # of Rating (1) Coupon % Yield % Remaining CMBS(2) $ 677,025 $ 677,901 $ 1,726 $ (5,069) $ 674,558 72 AAA 1.68 % 1.65 % 2.07 CMBS interest-only(2)(4) 1,399,645 18,072 748 — 18,820 14 AAA 0.43 % 2.00 % 2.01 GNMA interest-only(4)(6) 63,305 635 145 (81) 699 14 AA+ 0.40 % 4.79 % 3.39 Agency securities(2) 568 572 7 — 579 2 AA+ 2.50 % 1.60 % 0.97 GNMA permanent securities(2) 24,040 24,171 376 — 24,547 3 AA+ 4.12 % 3.54 % 1.18 Total debt securities $ 2,164,583 $ 721,351 $ 3,002 $ (5,150) $ 719,203 105 0.86 % 1.72 % 2.04 Provision for current expected credit losses N/A — — (20) (20) Total real estate securities $ 2,164,583 $ 721,351 $ 3,002 $ (5,170) $ 719,183 105 December 31, 2020 Gross Unrealized Weighted Average Asset Type Outstanding Amortized Gains Losses Carrying # of Rating (1) Coupon % Yield % Remaining CMBS(2) $ 1,015,520 $ 1,015,282 $ 1,382 $ (13,363) $ 1,003,301 (3) 90 AAA 1.56 % 1.56 % 2.01 CMBS interest-only(2)(4) 1,498,181 21,567 672 (26) 22,213 (5) 15 AAA 0.44 % 3.53 % 2.19 GNMA interest-only(4)(6) 75,350 868 232 (100) 1,000 11 AA+ 0.43 % 5.06 % 3.59 Agency securities(2) 586 593 12 — 605 2 AA+ 2.55 % 1.64 % 1.26 GNMA permanent securities(2) 30,254 30,340 859 — 31,199 5 AA+ 3.87 % 3.49 % 1.98 Total debt securities $ 2,619,891 $ 1,068,650 $ 3,157 $ (13,489) $ 1,058,318 123 0.91 % 1.66 % 2.01 Provision for current expected credit losses N/A — — (20) (20) Total real estate securities $ 2,619,891 $ 1,068,650 $ 3,157 $ (13,509) $ 1,058,298 123 (1) Represents the weighted average of the ratings of all securities in each asset type, expressed as an S&P equivalent rating. For each security rated by multiple rating agencies, the highest rating is used. Ratings provided were determined by third-party rating agencies as of a particular date, may not be current and are subject to change (including the assignment of a “negative outlook” or “credit watch”) at any time. (2) CMBS, CMBS interest-only securities, Agency securities, GNMA permanent securities and corporate bonds are classified as available-for-sale and reported at fair value with changes in fair value recorded in the current period in other comprehensive income. (3) As of June 30, 2021 and December 31, 2020, respectively, includes $11.0 million and $11.1 million of restricted securities which are designated as risk retention securities under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (the “Dodd-Frank Act”) and are therefore subject to transfer restrictions over the term of the securitization trust and are classified as held-to-maturity and reported at amortized cost. (4) The amounts presented represent the principal amount of the mortgage loans outstanding in the pool in which the interest-only securities participate. (5) As of June 30, 2021 and December 31, 2020, respectively, includes $0.6 million and $0.7 million of restricted securities which are designated as risk retention securities under the Dodd-Frank Act and are therefore subject to transfer restrictions over the term of the securitization trust and are classified as held-to-maturity and reported at amortized cost. (6) Agency interest-only securities are recorded at fair value with changes in fair value recorded in current period earnings. The Company’s Agency interest-only securities are considered to be hybrid financial instruments that contain embedded derivatives. As a result, the Company has elected to account for them as hybrid instruments in their entirety at fair value with changes in fair value recognized in unrealized gain (loss) on Agency interest-only securities in the consolidated statements of income in accordance with ASC 815. The following is a breakdown of the carrying value of the Company’s debt securities by remaining maturity based upon expected cash flows at June 30, 2021 and December 31, 2020 ($ in thousands): June 30, 2021 Asset Type Within 1 year 1-5 years 5-10 years After 10 years Total CMBS $ 296,214 $ 315,343 $ 54,231 $ 8,770 $ 674,558 CMBS interest-only 947 17,873 — — 18,820 GNMA interest-only 67 433 199 — 699 Agency securities 508 71 — — 579 GNMA permanent securities — 24,547 — — 24,547 Provision for current expected credit losses — — — — (20) Total debt securities $ 297,736 $ 358,267 $ 54,430 $ 8,770 $ 719,183 December 31, 2020 Asset Type Within 1 year 1-5 years 5-10 years After 10 years Total CMBS $ 230,977 $ 748,953 $ 23,371 $ — $ 1,003,301 CMBS interest-only 1,572 20,641 — — 22,213 GNMA interest-only 65 647 288 — 1,000 Agency securities — 605 — — 605 GNMA permanent securities 67 31,132 — — 31,199 Provision for current expected credit losses — — — — (20) Total debt securities $ 232,681 $ 801,978 $ 23,659 $ — $ 1,058,298 During the three and six months ended June 30, 2021, the Company realized losses on securities recorded as other than temporary impairments of zero and $0.1 million respectively, which are included in realized gain (loss) on securities on the Company’s consolidated statements of income. During the three and six months ended June 30, 2020, the Company realized losses on securities recorded as other than temporary impairments of $0.1 million and $0.3 million, respectively. |
REAL ESTATE AND RELATED LEASE I
REAL ESTATE AND RELATED LEASE INTANGIBLES, NET | 6 Months Ended |
Jun. 30, 2021 | |
Real Estate [Abstract] | |
REAL ESTATE AND RELATED LEASE INTANGIBLES, NET | 5. REAL ESTATE AND RELATED LEASE INTANGIBLES, NET The market conditions due to the COVID-19 pandemic and the resulting economic disruption have broadly impacted the commercial real estate sector. As expected, the net leased commercial real estate properties, which comprise the majority of our portfolio, have remained minimally impacted as the majority of the net leased properties in our real estate portfolio are necessity-based businesses and have remained open and stable during the COVID-19 pandemic. We continue to actively monitor the diversified commercial real estate properties for both the immediate and long term impact of the pandemic on the buildings, the tenants, the business plans and the ability to execute those business plans. The following tables present additional detail related to our real estate portfolio, net, including foreclosed properties ($ in thousands): June 30, 2021 December 31, 2020 Land $ 213,477 $ 220,511 Building 820,417 838,542 In-place leases and other intangibles 153,989 157,176 Undepreciated real estate and related lease intangibles 1,187,883 1,216,229 Less: Accumulated depreciation and amortization (239,435) (230,925) Real estate and related lease intangibles, net $ 948,448 $ 985,304 Below market lease intangibles, net (other liabilities) $ (35,807) $ (36,952) At June 30, 2021 and December 31, 2020, the Company held foreclosed properties included in real estate and related lease intangibles, net with a carrying value of $104.8 million and $106.8 million, respectively. The following table presents depreciation and amortization expense on real estate recorded by the Company ($ in thousands): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Depreciation expense(1) $ 7,825 $ 8,110 $ 15,815 $ 16,383 Amortization expense 1,639 1,681 3,185 3,392 Total real estate depreciation and amortization expense $ 9,464 $ 9,791 $ 19,000 $ 19,775 (1) Depreciation expense on the consolidated statements of income also includes $25 thousand and $50 thousand of depreciation on corporate fixed assets for the three and six months ended June 30, 2021 and 2020. The Company’s intangible assets are comprised of in-place leases, above market leases and other intangibles. The following tables present additional detail related to our intangible assets ($ in thousands): June 30, 2021 December 31, 2020 Gross intangible assets(1) $ 153,989 $ 157,176 Accumulated amortization 67,996 66,014 Net intangible assets $ 85,993 $ 91,162 (1) Includes $4.0 million and $4.2 million of unamortized above market lease intangibles which are included in real estate and related lease intangibles, net on the consolidated balance sheets as of June 30, 2021 and December 31, 2020, respectively. The following table presents increases/reductions in operating lease income related to the amortization of above or below market leases recorded by the Company ($ in thousands): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Reduction in operating lease income for amortization of above market lease intangibles acquired $ (92) $ (92) $ (183) $ (183) Increase in operating lease income for amortization of below market lease intangibles acquired 576 619 1,146 1,371 The following table presents expected adjustment to operating lease income and expected amortization expense during the next five years and thereafter related to the above and below market leases and acquired in-place lease and other intangibles for property owned as of June 30, 2021 ($ in thousands): Period Ending December 31, Adjustment to Operating Lease Income Amortization Expense 2021 (last 6 months) $ 536 $ 2,620 2022 1,071 5,241 2023 1,071 5,241 2024 1,071 5,241 2025 1,071 5,241 Thereafter 27,000 58,423 Total $ 31,820 $ 82,007 Rent Receivables, Unencumbered Real Estate, and Operating Lease Income There were $0.1 million and $0.5 million of rent receivables included in other assets on the consolidated balance sheets as of June 30, 2021 and December 31, 2020, respectively. There was unencumbered real estate of $74.8 million and $75.9 million as of June 30, 2021 and December 31, 2020, respectively. During the three months ended June 30, 2021 and 2020, the Company recorded $2.8 million and $0.6 million, respectively, of real estate operating income, which is included in operating lease income in the consolidated statements of income. During the six months ended June 30, 2021 and 2020, the Company recorded $3.8 million and $2.5 million, respectively. The following is a schedule of non-cancellable, contractual, future minimum rent under leases (excluding property operating expenses paid directly by tenant under net leases) at June 30, 2021 ($ in thousands): Period Ending December 31, Amount 2021 (last 6 months) $ 46,824 2022 70,156 2023 62,414 2024 61,450 2025 60,173 Thereafter 448,700 Total $ 749,717 Acquisitions During the six months ended June 30, 2021, the Company acquired the following properties ($ in thousands): Acquisition Date Type Primary Location(s) Purchase Price/Fair Value on the Date of Foreclosure Ownership Interest (1) Real estate acquired via foreclosure February 2021 Hotel Miami, FL $ 43,750 100.0% Total real estate acquired via foreclosure 43,750 Total real estate acquisitions $ 43,750 (1) Properties were consolidated as of acquisition date. In February 2021, the Company acquired a hotel in Miami, FL via foreclosure recognizing a $25.8 thousand loss which is included in its consolidated statements of income. The property previously served as collateral for a mortgage loan receivable held for investment with a basis of $45.1 million, net of an asset-specific loan loss provision of $1.2 million recorded in the three months ended December 31, 2020. In February 2021, the foreclosed property was sold without any gain or loss. The Company recorded no revenues from its 2021 acquisitions for the six months ended June 30, 2021. During the six months ended June 30, 2020, the Company acquired the following properties ($ in thousands): Acquisition Date Type Primary Location(s) Purchase Price/Fair Value on the Date of Foreclosure Ownership Interest (1) Aggregate purchases of net leased real estate $ 6,239 100.0% Real estate acquired via foreclosure March 2020 Diversified Los Angeles, CA 21,535 100.0% June 2020 Diversified Winston Salem, NC 3,900 100.0% Total real estate acquired via foreclosure 25,435 Total real estate acquisitions $ 31,674 (1) Properties were consolidated as of acquisition date. The Company allocates purchase consideration based on relative fair values, and real estate acquisition costs are capitalized as a component of the cost of the assets acquired for asset acquisitions. During the six months ended June 30, 2020, all acquisitions were determined to be asset acquisitions. Sales The Company sold the following properties during the six months ended June 30, 2021 ($ in thousands): Sales Date Type Primary Location(s) Net Sales Proceeds Net Book Value Realized Gain/(Loss) Properties Units Sold Units Remaining February 2021 Hotel Miami, FL $ 43,750 $ 43,750 $ — 1 — — June 2021 Retail North Dartmouth, MA 38,732 19,343 19,389 1 — — Totals $ 82,482 $ 63,093 $ 19,389 The Company sold the following properties during the six months ended June 30, 2020 ($ in thousands): Sales Date Type Primary Location(s) Net Sales Proceeds Net Book Value Realized Gain/(Loss) Properties Units Sold Units Remaining Various Condominium Miami, FL $ 931 $ 924 $ 7 — 3 3 March 2020 Diversified Richmond, VA 22,526 14,829 7,697 7 — — March 2020 Diversified Richmond, VA 6,933 4,109 2,824 1 — — Totals $ 30,390 $ 19,862 $ 10,528 (1) Realized gain (loss) on the sale of real estate, net on the consolidated statements of income also includes $0.1 million of realized loss on the disposal of fixed assets for the six months ended June 30, 2020. |
INVESTMENT IN AND ADVANCES TO U
INVESTMENT IN AND ADVANCES TO UNCONSOLIDATED JOINT VENTURES | 6 Months Ended |
Jun. 30, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
INVESTMENT IN AND ADVANCES TO UNCONSOLIDATED JOINT VENTURES | 6. INVESTMENT IN AND ADVANCES TO UNCONSOLIDATED JOINT VENTURES The following is a summary of the Company’s investments in and advances to unconsolidated joint ventures, which we account for using the equity method, as of June 30, 2021 and December 31, 2020 ($ in thousands): Entity June 30, 2021 December 31, 2020 Grace Lake JV, LLC $ 4,645 $ 4,023 24 Second Avenue Holdings LLC 33,174 42,230 Investment in unconsolidated joint ventures $ 37,819 $ 46,253 The following is a summary of the Company’s allocated earnings (losses) based on its ownership interests from investment in unconsolidated joint ventures for the three and six months ended June 30, 2021 and 2020 ($ in thousands): Three Months Ended June 30, Six Months Ended June 30, Entity 2021 2020 2021 2020 Grace Lake JV, LLC $ 325 $ 263 $ 622 $ 449 24 Second Avenue Holdings LLC (88) 208 51 463 Earnings (loss) from investment in unconsolidated joint ventures $ 237 $ 471 $ 673 $ 912 Grace Lake JV, LLC In connection with the origination of a loan in April 2012, the Company received a 25% equity interest with the right to convert upon a capital event. On March 22, 2013, the loan was refinanced, and the Company converted its interest into a 19% limited liability company membership interest in Grace Lake JV, LLC (“Grace Lake LLC”), which holds an investment in an office building complex. After taking into account the preferred return of 8.25% and the return of all equity remaining in the property to the Company’s operating partner, the Company is entitled to 25% of the distribution of all excess cash flows and all disposition proceeds upon any sale. The Company is not legally required to provide any future funding to Grace Lake LLC. The Company accounts for its interest in Grace Lake LLC using the equity method of accounting, as it has a 19% investment, compared to the 81% investment of its operating partner and does not control the entity. The Company’s investment in Grace Lake LLC is an unconsolidated joint venture, which is a variable interest entity (“VIE”) for which the Company is not the primary beneficiary. This joint venture was deemed to be a VIE primarily based on the fact there are disproportionate voting and economic rights within the joint venture. The Company determined that it was not the primary beneficiary of this VIE based on the fact that the Company has a passive investment and no control of this entity and therefore does not have controlling financial interests in this VIE. The Company’s maximum exposure to loss is limited to its investment in the VIE. The Company has not provided financial support to this VIE that it was not previously contractually required to provide. During the six months ended June 30, 2021, and June 30, 2020, the Company received no distributions from its investment in Grace Lake LLC. The Company holds its investment in Grace Lake LLC in a TRS. 24 Second Avenue Holdings LLC On August 7, 2015, the Company entered into a joint venture, 24 Second Avenue Holdings LLC (“24 Second Avenue”), with an operating partner (the “Operating Partner”) to invest in a ground-up residential/retail condominium development and construction project located at 24 Second Avenue, New York, NY. The Company accounted for its interest in 24 Second Avenue using the equity method of accounting as its joint venture partner was the managing member of 24 Second Avenue and had substantive management rights. During the three months ended March 31, 2019, the Company converted its existing $35.0 million common equity interest into a $35.0 million priority preferred equity position. The Company also provided $50.4 million in first mortgage financing in order to refinance the existing $48.1 million first mortgage construction loan which was made by another lending institution. In addition to the new $50.4 million first mortgage loan, the Company also funded a $6.5 million mezzanine loan for use in completing the project. The Operating Partner must fully fund any and all additional capital for necessary expenses. Due to the Company’s non-controlling equity interest in 24 Second Avenue, the Company accounts for the new loans as additional investments in the joint venture. During the three and six months ended June 30, 2021 the Company recorded $(0.1) million and $0.1 million, respectively, in income (expenses), each of which is recorded in earnings (loss) from investment in unconsolidated joint ventures in the consolidated statements of income. During the three and six months ended June 30, 2020 the Company recorded $0.2 million and $0.5 million, respectively, in income (expenses). The Company received $6.9 million and $9.1 million of distributions during the three and six months ended June 30, 2021, respectively. The 24 Second Avenue investment consists of residential condominium units and one commercial condominium unit. 24 Second Avenue started closing on the existing sales contracts during the quarter ended March 31, 2019, upon receipt of New York City Building Department approvals and a temporary certificate of occupancy for a portion of the project. As of June 30, 2021, 24 Second Avenue sold 24 residential condominium units for $62.7 million in total gross sale proceeds, and two residential condominium units were under contract for sale for $10.2 million in gross sales proceeds with a 10% deposit down on the sales contracts. As of June 30, 2021, the Company had no additional remaining capital commitment to 24 Second Avenue. The Company’s non-controlling investment in 24 Second Avenue is an unconsolidated joint venture, which is a VIE for which the Company is not the primary beneficiary. This joint venture was deemed to be a VIE primarily based on (i) the fact that the total equity investment at risk (inclusive of the additional financing the Company provided through the first mortgage and mezzanine loans) is sufficient to permit the entities to finance activities without additional subordinated financial support provided by any parties, including equity holders; and (ii) the voting and economic rights are not disproportionate within the joint venture. The Company determined that it was not the primary beneficiary of this VIE because it does not have a controlling financial interest. The Company holds its investment in 24 Second Avenue in a TRS. Combined Summary Financial Information for Unconsolidated Joint Ventures The following is a summary of the combined financial position of the unconsolidated joint ventures in which the Company had investment interests as of June 30, 2021 and December 31, 2020 ($ in thousands): June 30, 2021 December 31, 2020 Total assets $ 117,970 $ 114,916 Total liabilities 69,848 75,775 Partners’/members’ capital $ 48,122 $ 39,141 The following is a summary of the combined results from operations of the unconsolidated joint ventures for the period in which the Company had investment interests during the three and six months ended June 30, 2021 and 2020 ($ in thousands): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Total revenues $ 4,543 $ 4,294 $ 9,057 $ 8,770 Total expenses 3,242 3,450 6,565 7,424 Net income (loss) $ 1,301 $ 844 $ 2,492 $ 1,346 |
DEBT OBLIGATIONS, NET
DEBT OBLIGATIONS, NET | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
DEBT OBLIGATIONS, NET | 7. DEBT OBLIGATIONS, NET The details of the Company’s debt obligations at June 30, 2021 and December 31, 2020 are as follows ($ in thousands): June 30, 2021 Debt Obligations Committed Financing Debt Obligations Outstanding Committed but Unfunded Interest Rate at June 30, 2021(1) Current Term Maturity Remaining Extension Options Eligible Collateral Carrying Amount of Collateral Fair Value of Collateral Committed Loan Repurchase Facility(2) $ 500,000 $ 109,300 $ 390,700 1.82% — 2.07% 12/19/2022 (3) (4) $ 178,903 $ 178,903 Committed Loan Repurchase Facility 100,000 — 100,000 —% — —% 2/26/2022 (5) (6) — — Committed Loan Repurchase Facility 300,000 82,873 217,127 1.82% — 2.82% 12/16/2021 (7) (8) 142,515 142,515 Committed Loan Repurchase Facility 100,000 — 100,000 —% — —% 4/30/2024 (9) (4) — — Committed Loan Repurchase Facility 100,000 26,183 73,817 2.2% — 2.2% 12/31/2022 (3) (4) 45,053 45,053 Committed Loan Repurchase Facility 100,000 — 100,000 —% — —% 10/24/2021 (10) (11) — — Total Committed Loan Repurchase Facilities 1,200,000 218,356 981,644 366,471 366,471 Committed Securities Repurchase Facility(2) 790,700 62,914 727,786 0.63% — 1.03% 5/27/2023 N/A (12) 75,064 75,064 Uncommitted Securities Repurchase Facility N/A (13) 244,430 N/A (13) 0.55% — 2.14% 7/2021-11/2021 N/A (12) 279,661 279,661 (14) Total Repurchase Facilities 1,600,000 525,700 1,318,730 721,196 721,196 Revolving Credit Facility 266,430 — 266,430 —% — —% 2/11/2022 (15) N/A (16) N/A (16) N/A (16) Mortgage Loan Financing 745,971 745,971 — 3.75% — 6.16% 2021 - 2030(17) N/A (18) 874,924 1,106,518 (19) Secured Financing Facility 161,369 152,142 (20) — 10.75% — 10.75% 5/6/2023 N/A (21) 246,288 246,512 CLO Debt 169,783 168,843 (22) — 5.5% — 5.5% 5/16/2024 N/A (4) 296,992 296,992 Borrowings from the FHLB 288,000 288,000 — 0.36% — 2.74% 2021 - 2024 N/A (23) 319,565 319,565 (24) Senior Unsecured Notes 2,115,644 2,095,059 (25) — 4.25% — 5.25% 2022 - 2029 N/A N/A (26) N/A (26) N/A (26) Total Debt Obligations, Net $ 5,347,197 $ 3,975,715 $ 1,585,160 $ 2,458,965 $ 2,690,783 (1) June 2021 LIBOR rates are used to calculate interest rates for floating rate debt. (2) The combined committed amounts for the loan repurchase facility and the securities repurchase facility total $900.0 million, with maximum capacity on the loan repurchase facility of $500.0 million, and maximum capacity on the securities repurchase facility of $900.0 million less outstanding commitments on the loan repurchase facility. (3) Two 12-month extension periods at Company’s option. No new advances are permitted after the initial maturity date. (4) First mortgage commercial real estate loans and senior and pari passu interests therein. It does not include the real estate collateralizing such loans. (5) Two additional 12-month periods at Company’s option. (6) First mortgage commercial real estate loans. It does not include the real estate collateralizing such loans. (7) Two additional 364-day periods at Company’s option. (8) First mortgage and mezzanine commercial real estate loans and senior and pari passu interests therein. It does not include the real estate collateralizing such loans. (9) One additional 12-month extension period and two additional 6-month extension periods at Company’s option. (10) The Company may extend periodically with lender’s consent. At no time can the maturity of the facility exceed 364 days from the date of determination. (11) First mortgage, junior and mezzanine commercial real estate loans, and certain senior and/or pari passu interests therein. (12) Commercial real estate securities. It does not include the first mortgage commercial real estate loans collateralizing such securities. (13) Represents uncommitted securities repurchase facilities for which there is no committed amount subject to future advances. (14) Includes $2.1 million of restricted securities under the risk retention rules of the Dodd-Frank Act. These securities are accounted for as held-to-maturity and recorded at amortized cost basis. (15) Three additional 12-month periods at Company’s option. (16) The obligations under the revolving credit facility (“Revolving Credit Facility”) are guaranteed by the Company and certain of its subsidiaries and secured by equity pledges in certain Company subsidiaries. (17) Anticipated repayment dates. (18) Certain of our real estate investments serve as collateral for our mortgage loan financing. (19) Using undepreciated carrying value of commercial real estate to approximate fair value. (20) Presented net of unamortized debt issuance costs of $4.5 million and an unamortized discount of $4.7 million related to the Purchase Right (described in detail under Secured Financing Facility below) at June 30, 2021. (21) First mortgage commercial real estate loans. Substitution of collateral and conversion of loan collateral to mortgage collateral are permitted with Lender’s approval. Pending substitution of acceptable collateral, $19.8 million of the obligations are unsecured and guaranteed by the Company. (22) Presented net of unamortized debt issuance costs of $0.9 million at June 30, 2021. (23) Investment grade commercial real estate securities and cash. It does not include the first mortgage commercial real estate loans collateralizing such securities. (24) Includes $8.7 million of restricted securities under the risk retention rules of the Dodd-Frank Act. These securities are accounted for as held-to-maturity and recorded at amortized cost basis. (25) Presented net of unamortized debt issuance costs of $20.6 million at June 30, 2021. (26) The obligations under the senior unsecured notes are guaranteed by the Company and certain of its subsidiaries. December 31, 2020 Debt Obligations Committed Financing Debt Obligations Outstanding Committed but Unfunded Interest Rate at December 31, 2020(1) Current Term Maturity Remaining Extension Options Eligible Collateral Carrying Amount of Collateral Fair Value of Collateral Committed Loan Repurchase Facility(2) $ 500,000 $ 112,004 $ 387,996 1.91% — 2.16% 12/19/2022 (3) (4) $ 180,416 $ 180,416 Committed Loan Repurchase Facility 250,000 — 250,000 —% — —% 2/26/2021 (5) (6) — — Committed Loan Repurchase Facility 300,000 90,197 209,803 1.91% — 2.91% 12/16/2021 (7) (8) 154,850 154,850 Committed Loan Repurchase Facility 300,000 11,312 288,688 2.19% — 2.19% 11/6/2022 (9) (4) 28,285 28,285 Committed Loan Repurchase Facility 100,000 26,183 73,817 2.28% — 2.28% 12/31/2022 (10) (4) 45,235 45,235 Committed Loan Repurchase Facility 100,000 15,672 84,328 2.66% — 3.50% 10/24/2021 (11) (12) 30,600 30,600 Total Committed Loan Repurchase Facilities 1,550,000 255,368 1,294,632 439,386 439,386 Committed Securities Repurchase Facility(2) 787,996 149,633 638,363 0.86% — 1.11% 12/23/2021 N/A (13) 226,008 226,008 Uncommitted Securities Repurchase Facility N/A (14) 415,836 N/A (14) 0.73% — 2.84% 1/2021-3/2021 N/A (13) 502,476 502,476 (15) Total Repurchase Facilities 1,950,000 820,837 1,544,999 1,167,870 1,167,870 Revolving Credit Facility 266,430 266,430 — 3.15% 2/11/2022 (16) N/A (17) N/A (17) N/A (17) Mortgage Loan Financing 766,064 766,064 — 3.75% — 6.16% 2021 - 2030(18) N/A (19) 909,406 1,133,703 (20) Secured Financing Facility 206,350 192,646 (21) — 10.75% — 10.75% 5/6/2023 N/A (22) 327,769 328,097 CLO Debt 279,156 276,516 (23) — 5.50% — 5.50% 5/16/2024 N/A (4) 362,600 362,600 Borrowings from the FHLB 1,500,000 288,000 1,212,000 0.41% — 2.74% 2021 - 2024 N/A (24) 388,400 392,212 (25) Senior Unsecured Notes 1,612,299 1,599,371 (26) — 4.25% — 5.88% 2021 - 2027 N/A N/A (27) N/A (27) N/A (27) Total Debt Obligations $ 6,580,299 $ 4,209,864 $ 2,756,999 $ 3,156,045 $ 3,384,482 (1) December 31, 2020 LIBOR rates are used to calculate interest rates for floating rate debt. (2) The combined committed amounts for the loan repurchase facility and the securities repurchase facility total $900.0 million, with maximum capacity on the loan repurchase facility of $500.0 million, and maximum capacity on the securities repurchase facility of $900.0 million less outstanding commitments on the loan repurchase facility. (3) Two additional 12-month periods at Company’s option. No new advances are permitted after the initial maturity date. (4) First mortgage commercial real estate loans and senior and pari passu interests therein. It does not include the real estate collateralizing such loans. (5) Three additional 12-month periods at Company’s option. (6) First mortgage commercial real estate loans. It does not include the real estate collateralizing such loans. (7) Two additional 364-day periods at Company’s option. (8) First mortgage and mezzanine commercial real estate loans and senior and pari passu interests therein. It does not include the real estate collateralizing such loans. (9) One additional 12-month extension period and two additional 6-month extension periods at Company’s option. (10) Two additional 12-month extension periods at Company’s option. No new advances are permitted after the initial maturity date. (11) The Company may extend periodically with lender’s consent. At no time can the maturity of the facility exceed 364 days from the date of determination. (12) First mortgage, junior and mezzanine commercial real estate loans, and certain senior and/or pari passu interests therein. (13) Commercial real estate securities. It does not include the first mortgage commercial real estate loans collateralizing such securities. (14) Represents uncommitted securities repurchase facilities for which there is no committed amount subject to future advances. (15) Includes $2.1 million of restricted securities under the risk retention rules of the Dodd-Frank Act. These securities are accounted for as held-to-maturity and recorded at amortized cost basis. (16) Three additional 12-month periods at Company’s option. (17) The obligations under the Revolving Credit Facility are guaranteed by the Company and certain of its subsidiaries and secured by equity pledges in certain Company subsidiaries. (18) Anticipated repayment dates. (19) Certain of our real estate investments serve as collateral for our mortgage loan financing. (20) Using undepreciated carrying value of commercial real estate to approximate fair value. (21) Presented net of unamortized debt issuance costs of $7.2 million and an unamortized discount of $6.6 million related to the Purchase Right (described in detail under Secured Financing Facility below) at December 31, 2020. (22) First mortgage commercial real estate loans. Substitution of collateral and conversion of loan collateral to mortgage collateral are permitted with Lender’s approval. (23) Presented net of unamortized debt issuance costs of $2.6 million at December 31, 2020. (24) First mortgage commercial real estate loans and investment grade commercial real estate securities. It does not include the real estate collateralizing such loans and securities. (25) Includes $9.4 million of restricted securities under the risk retention rules of the Dodd-Frank Act. These securities are accounted for as held-to-maturity and recorded at amortized cost basis. (26) Presented net of unamortized debt issuance costs of $12.9 million at December 31, 2020. (27) The obligations under the senior unsecured notes are guaranteed by the Company and certain of its subsidiaries. Combined Maturity of Debt Obligations The following schedule reflects the Company’s contractual payments under all borrowings by maturity ($ in thousands): Period ending December 31, Borrowings by 2021 (last 6 months) $ 631,068 2022 925,858 2023 146,112 2024 296,315 2025 468,876 Thereafter 1,534,678 Subtotal 4,002,907 Debt issuance costs included in senior unsecured notes (20,585) Debt issuance costs included in secured financing facility (4,535) Discount on secured financing facility related to Purchase Right (4,692) Debt issuance costs included in CLO debt (941) Debt issuance costs included in mortgage loan financing (329) Premiums included in mortgage loan financing(2) 3,890 Total $ 3,975,715 (1) Contractual payments under current maturities, some of which are subject to extensions. The maturities listed above for 2021 relate to debt obligations that are subject to existing Company controlled extension options for one or more additional one-year periods or could be refinanced by other existing facilities as of June 30, 2021. (2) Deferred gains on intercompany loans, secured by our own real estate, sold into securitizations. These premiums are amortized as a reduction to interest expense. Financial Covenants The Company’s debt facilities are subject to covenants which require the Company to maintain a minimum level of total equity. Largely as a result of this restriction, approximately $871.4 million of the total equity is restricted from payment as a dividend by the Company at June 30, 2021. We were in compliance with all covenants described in the Company’s Annual Report, as of June 30, 2021. Committed Loan and Securities Repurchase Facilities The Company has entered into six committed master repurchase agreements, as outlined in the June 30, 2021 table above, totaling $1.2 billion of credit capacity in order to finance its lending activities. Assets pledged as collateral under these facilities are limited to whole mortgage loans or participation interests in mortgage loans collateralized by first liens on commercial properties and mezzanine debt. The Company also has a term master repurchase agreement with a major U.S. bank to finance CMBS totaling $790.7 million. The Company’s repurchase facilities include covenants covering net worth requirements, minimum liquidity levels, maximum leverage ratios, and minimum fixed charge coverage ratios. The Company believes it was in compliance with all covenants as of June 30, 2021 and December 31, 2020. The Company has the option to extend some of the current facilities subject to a number of conditions, including satisfaction of certain notice requirements, no event of default exists, and no margin deficit exists, all as defined in the repurchase facility agreements. The lenders have sole discretion with respect to the inclusion of collateral in these facilities, to determine the market value of the collateral on a daily basis, to be exercised on a good faith basis, and have the right in certain cases to require additional collateral, a full and/or partial repayment of the facilities (margin call), or a reduction in unused availability under the facilities, sufficient to rebalance the facilities if the estimated market value of the included collateral declines. On May 19, 2021, the Company amended a credit facility with a major U.S. banking institution to, among other things, reduce the maximum facility amount from $300 million to $100 million and extend the initial term thereof from November 6, 2022 to April 30, 2024. On May 25, 2021, the Company amended a credit facility with a major banking institution to, among other things, reduce the maximum facility amount from $250 million to $100 million. Revolving Credit Facility During the three months ended June 30, 2021, the Company paid down the full amount of the Revolving Credit Facility. As of June 30, 2021, the Company had no outstanding borrowings on the Revolving Credit Facility but still maintains the ability to draw $266.4 million. Debt Issuance Costs As discussed in Note 2, Significant Accounting Policies in the Annual Report, the Company considers its committed loan master repurchase facilities and Revolving Credit Facility to be revolving debt arrangements. As such, the Company continues to defer and present costs associated with these facilities as an asset, subsequently amortizing those costs ratably over the term of each revolving debt arrangement. As of June 30, 2021 and December 31, 2020, the amount of unamortized costs relating to such facilities were $4.4 million and $8.0 million, respectively, and are included in other assets in the consolidated balance sheets. Mortgage Loan Financing These non-recourse debt agreements provide for fixed rate financing at rates ranging from 3.75% to 6.16%, with anticipated maturity dates between 2021-2030 as of June 30, 2021. These loans have carrying amounts of $746.0 million and $766.1 million, net of unamortized premiums of $3.9 million and $4.6 million as of June 30, 2021 and December 31, 2020, respectively, representing proceeds received upon financing greater than the contractual amounts due under these agreements. The premiums are being amortized over the remaining life of the respective debt instruments using the effective interest method. The Company recorded $0.4 million and $0.3 million for the three months ended June 30, 2021 and June 30, 2020, respectively and $0.7 million and $0.6 million of premium amortization, which decreased interest expense, for the six months ended June 30, 2021 and 2020, respectively. The mortgage loans are collateralized by real estate and related lease intangibles, net, of $874.9 million and $909.4 million as of June 30, 2021 and December 31, 2020, respectively. Secured Financing Facility On April 30, 2020, the Company entered into a strategic financing arrangement with an American multinational corporation (the “Lender”), under which the Lender provided the Company with approximately $206.4 million in senior secured financing (the “Secured Financing Facility”) to fund transitional and land loans. The Secured Financing Facility is secured on a first lien basis on a portfolio of certain of the Company’s loans and will mature on May 6, 2023, and borrowings thereunder bear interest at LIBOR (or a minimum of 0.75% if greater) plus 10.0%, with a minimum interest premium clause, of which approximately $13.9 million remains. The Senior Financing Facility is non-recourse, subject to limited exceptions, and does not contain mark-to-market provisions. Additionally, the Senior Financing Facility provides the Company optionality to modify or restructure loans or forbear in exercising remedies, which maximizes the Company’s financial flexibility. During the three months ended June 30, 2021, the facility was partially paid down by $45.0 million, which resulted in an ending balance as of June 30, 2021 of $152.1 million. As part of the strategic financing, the Lender also had the ability to make an equity investment in the Company of up to 4.0 million Class A common shares at $8.00 per share, subject to certain adjustments (the “Purchase Right”). The Purchase Right was exercised in full at $8.00 per share on December 29, 2020. In addition, the Lender has agreed not to sell, transfer, assign, pledge, hypothecate, mortgage, dispose of or in any way encumber the shares acquired as a result of exercising the Purchase Right for a period of time following the exercise date. In connection with the issuance of the Purchase Right, the Company and the Lender entered into a registration rights agreement, pursuant to which the Company has agreed to provide customary demand and piggyback registration rights to the Lender. The Purchase Right was classified as equity and the $200.9 million of net proceeds from the original issuance were allocated $192.5 million to the originally issued debt obligation and $8.4 million to the Purchase Right using the relative fair value method. The commitment to issue shares will not be subsequently remeasured. The $8.4 million allocated to the Purchase Right is being treated as a discount to the debt and amortized over the life of the Purchase Right to interest expense. Collateralized Loan Obligation (“CLO”) Debt On April 27, 2020, a consolidated subsidiary of the Company completed a private CLO transaction with a major U.S. bank which generated $310.2 million of gross proceeds to Ladder, financing $481.3 million of loans (“Contributed Loans”) at a 64.5% advance rate on a matched term, non-mark-to-market and non-recourse basis. A consolidated subsidiary of the Company retained a 35.5% subordinate and controlling interest in the CLO. The Company retained control over major decisions made with respect to the administration of the Contributed Loans, including broad discretion in managing these loans, and has the ability to appoint the special servicer under the CLO. The CLO is a VIE and the Company was the primary beneficiary and, therefore, consolidated the VIE - See Note 10, Consolidated Variable Interest Entities. As of June 30, 2021, the Company had $168.8 million of matched term, non-mark-to-market and non-recourse CLO debt included in debt obligations on its consolidated balance sheets. Borrowings from the Federal Home Loan Bank (“FHLB”) On July 11, 2012, Tuebor, a consolidated subsidiary of the Company, became a member of the FHLB and subsequently drew its first secured funding advances from the FHLB. As of February 19, 2021, pursuant to a final rule adopted by the Federal Housing Finance Agency (the “FHFA”) regarding the eligibility of captive insurance companies, Tuebor’s membership in the FHLB has been terminated, although outstanding advances may remain outstanding until their scheduled maturity dates. Funding for future advance paydowns is expected to be obtained from the natural amortization and/or sales of securities collateral, or from other financing sources. There is no assurance that the FHFA or the FHLB will not take actions that could adversely impact Tuebor’s existing advances. As of June 30, 2021, Tuebor had $288.0 million of borrowings outstanding, with terms of overnight to 3.25 years (with a weighted average of 2.26 years), interest rates of 0.36% to 2.74% (with a weighted average of 1.07%), and advance rates of 71.7% to 95.7% on eligible collateral. As of June 30, 2021, collateral for the borrowings was comprised of $236.1 millionof CMBS and U.S. Agency securities and $83.5 million of cash. Tuebor is subject to state regulations which require that dividends (including dividends to the Company as its parent) may only be made with regulatory approval. However, there can be no assurance that we would obtain such approval if sought. Largely as a result of this restriction, approximately $2.1 billion of the member’s capital was restricted from transfer via dividend to Tuebor’s parent without prior approval of state insurance regulators at June 30, 2021. To facilitate intercompany cash funding of operations and investments, Tuebor and its parent maintain regulator-approved intercompany borrowing/lending agreements. Senior Unsecured Notes As of June 30, 2021, the Company had $2.1 billion of unsecured corporate bonds outstanding. These unsecured financings were comprised of $465.9 million in aggregate principal amount of 5.25% senior notes due 2022 (the “2022 Notes”), $348.0 million in aggregate principal amount of 5.25% senior notes due 2025 (the “2025 Notes”), $651.8 million in aggregate principal amount of 4.25% senior notes due 2027 (the “2027 Notes”) and $650.0 million in aggregate principal of 4.75% senior notes due 2029 (the “2029 Notes,” collectively with the 2022 Notes, the 2025 Notes, and the 2027 Notes, the “Notes”). On January 27, 2021, the Company redeemed in full its 5.875% Senior Notes due 2021 (the “2021 Notes”) for $150.9 million. The 2021 Notes were redeemed at par, plus accrued and unpaid interest to the redemption date, pursuant to the optional redemption provisions of the indenture governing the 2021 Notes. The redemption of a portion of the 2021 Notes that were redeemed was subject to the condition that the Company’s subsidiary issuers of the 2021 Notes complete a notes offering of not less than $400 million. The issuers waived the condition prior to redeeming the 2021 Notes in full. LCFH issued the Notes with Ladder Capital Finance Corporation (“LCFC”), as co-issuers on a joint and several basis. LCFC is a 100% owned finance subsidiary of LCFH with no assets, operations, revenues or cash flows other than those related to the issuance, administration and repayment of the Notes. The Company and certain subsidiaries of LCFH currently guarantee the obligations under the Notes and the indenture. The Company is the general partner of LCFH and, through LCFH and its subsidiaries, operates the Ladder Capital business. As of June 30, 2021, the Company has a 100% economic and voting interest in LCFH and controls the management of LCFH as a result of its ability to appoint board members. Accordingly, the Company consolidates the financial results of LCFH. In addition, the Company, through certain subsidiaries which are treated as TRSs, is indirectly subject to U.S. federal, state and local income taxes. Other than federal, state and local income taxes, there are no material differences between the Company’s consolidated financial statements and LCFH’s consolidated financial statements. The Company believes it was in compliance with all covenants of the Notes as of June 30, 2021 and 2020. Unamortized debt issuance costs of $20.6 million and $12.9 million are included in senior unsecured notes as of June 30, 2021 and December 31, 2020, respectively, in accordance with GAAP. 2022 Notes On March 16, 2017, LCFH issued $500.0 million in aggregate principal amount of 5.250% senior notes due March 15, 2022 (the “2022 Notes”). The 2022 Notes require interest payments semi-annually in cash in arrears on March 15 and September 15 of each year, beginning on September 15, 2017. The 2022 Notes are unsecured and are subject to an unencumbered assets to unsecured debt covenant. At any time on or after September 15, 2021, the 2022 Notes are redeemable at the option of the Company, in whole or in part, upon not less than 15 nor more than 60 days’ notice, without penalty. On May 2, 2018, the board of the directors authorized the Company to repurchase any or all of the 2022 Notes from time to time without further approval. As of June 30, 2021, the remaining $465.9 million in aggregate principal amount of the 2022 Notes is due March 15, 2022. 2025 Notes On September 25, 2017, LCFH issued $400.0 million in aggregate principal amount of 5.250% senior notes due October 1, 2025 (the “2025 Notes”). The 2025 Notes require interest payments semi-annually in cash in arrears on April 1 and October 1 of each year, beginning on April 1, 2018. The 2025 Notes are unsecured and are subject to an unencumbered assets to unsecured debt covenant. The Company may redeem the 2025 Notes, in whole or in part, at any time, or from time to time, prior to their stated maturity upon not less than 15 nor more than 60 days’ notice, at a redemption price as specified in the indenture governing the 2025 Notes, plus accrued and unpaid interest, if any, to the redemption date. On May 2, 2018, the board of the directors authorized the Company to repurchase any or all of the 2025 Notes from time to time without further approval. As of June 30, 2021, the remaining $348.0 million in aggregate principal amount of the 2025 Notes is due October 1, 2025. 2027 Notes On January 30, 2020, LCFH issued $750.0 million in aggregate principal amount of 4.25% senior notes due February 1, 2027. The 2027 Notes require interest payments semi-annually in cash in arrears on August 1 and February 1 of each year, beginning on August 1, 2020. The 2027 Notes are unsecured and are subject to an unencumbered assets to unsecured debt covenant. The Company may redeem the 2027 Notes, in whole, at any time, or from time to time, prior to their stated maturity. At any time on or after February 1, 2023, the Company may redeem the 2027 Notes in whole or in part, upon not less than 15 nor more than 60 days’ notice, at a redemption price defined in the indenture governing the 2027 Notes, plus accrued and unpaid interest, if any, to the redemption date. Net proceeds of the offering were used to repay secured indebtedness. As of June 30, 2021, the remaining $651.8 million in aggregate principal amount of the 2027 Notes is due February 1, 2027. 2029 Notes On June 23, 2021, LCFH issued $650.0 million in aggregate principal amount of 4.75% senior notes due June 15, 2029. The 2029 Notes require interest payments semi-annually in cash in arrears on June 15 and December 15 of each year, beginning December 15, 2021. The 2029 Notes are unsecured and are subject to an unencumbered asset to unsecured debt covenant. The Company may redeem the 2029 Notes, in whole, at any time, or from time to time, prior to their stated maturity. At any time on or after June 15, 2024, the Company may redeem the 2029 Notes in whole or in part, upon not less than 10 nor more than 60 |
DERIVATIVE INSTRUMENTS
DERIVATIVE INSTRUMENTS | 6 Months Ended |
Jun. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE INSTRUMENTS | 8. DERIVATIVE INSTRUMENTS The Company uses derivative instruments primarily to economically manage the fair value variability of fixed rate assets caused by interest rate fluctuations and overall portfolio market risk. The following is a breakdown of the derivatives outstanding as of June 30, 2021 and December 31, 2020 ($ in thousands): June 30, 2021 Fair Value Remaining Contract Type Notional Asset(1) Liability(1) Caps 1 Month LIBOR $ 69,571 $ — $ — 0.36 Futures 5-year Swap 25,300 — 70 0.25 10-year Swap 107,700 — 298 0.25 Total futures 133,000 — 368 Total derivatives $ 202,571 $ — $ 368 (1) Shown as derivative instruments, at fair value, in the accompanying consolidated balance sheets. December 31, 2020 Fair Value Remaining Contract Type Notional Asset(1) Liability(1) Caps 1Month LIBOR $ 69,571 $ — $ — 0.35 Futures 5-year Swap 23,800 108 — 0.25 10-year Swap 41,800 191 — 0.25 Total futures 65,600 299 — Total derivatives $ 135,171 $ 299 $ — (1) Shown as derivative instruments, at fair value, in the accompanying consolidated balance sheets. The following table indicates the net realized gains (losses) and unrealized appreciation (depreciation) on derivatives, by primary underlying risk exposure, as included in net result from derivatives transactions in the consolidated statements of operations for the three and six months ended June 30, 2021 and 2020 ($ in thousands): Three Months Ended June 30, 2021 Six Months Ended June 30, 2021 Contract Type Unrealized Realized Net Result Unrealized Realized Net Result Futures $ (669) $ (3,175) $ (3,844) $ (667) $ 1,594 $ 927 Total $ (669) $ (3,175) $ (3,844) $ (667) $ 1,594 $ 927 Three Months Ended June 30, 2020 Six Months Ended June 30, 2020 Contract Type Unrealized Realized Net Result Unrealized Realized Net Result Futures $ (570) $ (326) $ (896) $ (298) $ (16,272) $ (16,570) Credit Derivatives — 83 83 111 211 322 Total $ (570) $ (243) $ (813) $ (187) $ (16,061) $ (16,248) The Company’s counterparties held $1.9 million and $0.8 million of cash margin as collateral for derivatives as of June 30, 2021 and December 31, 2020, respectively, which is included in restricted cash in the consolidated balance sheets. Futures Collateral posted with our futures counterparties is segregated in the Company’s books and records. Interest rate futures are centrally cleared by the Chicago Mercantile Exchange (“CME”) through a futures commission merchant. Interest rate futures that are governed by an International Swaps and Derivatives Association (“ISDA”) agreement provide for bilateral collateral pledging based on the counterparties’ market value. The counterparties have the right to re-pledge the collateral posted but have the obligation to return the pledged collateral, or substantially the same collateral, if agreed to by us, as the market value of the interest rate futures change. The Company is required to post initial margin and daily variation margin for our interest rate futures that are centrally cleared by CME. CME determines the fair value of our centrally cleared futures, including daily variation margin. Effective January 3, 2017, CME amended their rulebooks to legally characterize daily variation margin payments for centrally cleared interest rate futures as settlement rather than collateral. As a result of this rule change, variation margin pledged on the Company’s centrally cleared interest rate futures is settled against the realized results of these futures. |
OFFSETTING ASSETS AND LIABILITI
OFFSETTING ASSETS AND LIABILITIES | 6 Months Ended |
Jun. 30, 2021 | |
Offsetting [Abstract] | |
OFFSETTING ASSETS AND LIABILITIES | 9. OFFSETTING ASSETS AND LIABILITIES The following tables present both gross information and net information about derivatives and other instruments eligible for offset in the statement of financial position as of June 30, 2021 and December 31, 2020. The Company’s accounting policy is to record derivative asset and liability positions on a gross basis; therefore, the following tables present the gross derivative asset and liability positions recorded on the balance sheets, while also disclosing the eligible amounts of financial instruments and cash collateral to the extent those amounts could offset the gross amount of derivative asset and liability positions. The actual amounts of collateral posted by or received from counterparties may be in excess of the amounts disclosed in the following tables as the following only disclose amounts eligible to be offset to the extent of the recorded gross derivative positions. There were no offsetting of financial assets and derivative assets at as of June 30, 2021. The following table represents offsetting of financial liabilities and derivative liabilities as of June 30, 2021 ($ in thousands): Description Gross amounts of Gross amounts Net amounts of Gross amounts not offset in the Net amount Financial Cash collateral Derivatives $ 368 $ — $ 368 $ — $ 368 $ — Repurchase agreements $ 525,700 $ — $ 525,700 $ 525,700 $ — $ — Total $ 526,068 $ — $ 526,068 $ 525,700 $ 368 $ — (1) Included in restricted cash on consolidated balance sheets. The following table represents offsetting of financial assets and derivative assets as of December 31, 2020 ($ in thousands): Description Gross amounts of Gross amounts Net amounts of Gross amounts not offset in the Net amount Financial Cash collateral Derivatives $ 299 $ — $ 299 $ — $ — $ 299 Total $ 299 $ — $ 299 $ — $ — $ 299 (1) Included in restricted cash on consolidated balance sheets. The following table represents offsetting of financial liabilities and derivative liabilities as of December 31, 2020 ($ in thousands): Description Gross amounts of Gross amounts Net amounts of Gross amounts not offset in the Net amount Financial Cash collateral Repurchase agreements $ 820,837 $ — $ 820,837 $ 820,837 $ — $ — Total $ 820,837 $ — $ 820,837 $ 820,837 $ — $ — (1) Included in restricted cash on consolidated balance sheets. Master netting agreements that the Company has entered into with its derivative and repurchase agreement counterparties allow for netting of the same transaction, in the same currency, on the same date. Assets, liabilities, and collateral subject to master netting agreements as of June 30, 2021 and December 31, 2020 are disclosed in the tables above. The Company does not present its derivative and repurchase agreements net on the consolidated financial statements as it has elected gross presentation. |
CONSOLIDATED VARIABLE INTEREST
CONSOLIDATED VARIABLE INTEREST ENTITIES | 6 Months Ended |
Jun. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
CONSOLIDATED VARIABLE INTEREST ENTITIES | 10. CONSOLIDATED VARIABLE INTEREST ENTITIES The Company consolidates one collateralized loan obligation (“CLO”) VIE with the following balance sheets ($ in thousands): June 30, 2021 December 31, 2020 Notes 3 & 7 Restricted cash $ — $ 3,925 Mortgage loan receivables held for investment, net, at amortized cost 296,992 362,600 Accrued interest receivable 1,050 1,382 Other assets 22 69,649 Total assets $ 298,064 $ 437,556 Debt obligations, net $ 168,843 $ 276,516 Accrued expenses 389 682 Total liabilities 169,232 277,198 Net equity in VIEs (eliminated in consolidation) 128,832 160,358 Total equity 128,832 160,358 Total liabilities and equity $ 298,064 $ 437,556 |
EQUITY STRUCTURE AND ACCOUNTS
EQUITY STRUCTURE AND ACCOUNTS | 6 Months Ended |
Jun. 30, 2021 | |
Equity [Abstract] | |
EQUITY STRUCTURE AND ACCOUNTS | 11. EQUITY STRUCTURE AND ACCOUNTS Exchange for Class A Common Stock We are a holding company and have no material assets other than our direct and indirect ownership of Series REIT limited partnership units (“Series REIT LP Units”) and Series TRS limited partnership units (“Series TRS LP Units,” and, collectively with Series REIT LP Units, “Series Units”) of LCFH. Series TRS LP Units are exchangeable for the same number of limited liability company interests of LC TRS I LLC (“LC TRS I Shares”), which is a limited liability company that is a TRS as well as a general partner of Series TRS. Pursuant to the Third Amended and Restated LLLP Agreement of LCFH, the Continuing LCFH Limited Partners may from time to time, subject to certain conditions, receive one share of the Company’s Class A common stock in exchange for (i) one share of the Company’s Class B common stock, (ii) one Series REIT LP Unit and (iii) either one Series TRS LP Unit or one TRS I LLC Share, subject to equitable adjustments for stock splits, stock dividends and reclassifications. As of September 30, 2020, all shares of Class B common stock, Series REIT LP Units and Series TRS LP Units have been exchanged for shares of Class A common stock and no Class B common stock is outstanding as of June 30, 2021. As of June 30, 2021, the Company held a 100% interest in LCFH. Stock Repurchases On October 30, 2014, the board of directors authorized the Company to repurchase up to $50.0 million of the Company’s Class A common stock from time to time without further approval. Stock repurchases by the Company are generally made for cash in open market transactions at prevailing market prices but may also be made in privately negotiated transactions or otherwise. The timing and amount of purchases are determined based upon prevailing market conditions, our liquidity requirements, contractual restrictions and other factors. As of June 30, 2021, the Company has a remaining amount available for repurchase of $36.8 million, which represents 2.5% in the aggregate of its outstanding Class A common stock, based on the closing price of $11.54 per share on such date. The following table is a summary of the Company’s repurchase activity of its Class A common stock during the six months ended June 30, 2021 and 2020 ($ in thousands): Shares Amount(1) Authorizations remaining as of December 31, 2020 $ 38,102 Additional authorizations — Repurchases paid 120,000 (1,312) Repurchases unsettled — Authorizations remaining as of June 30, 2021 $ 36,790 (1) Amount excludes commissions paid associated with share repurchases. Shares Amount(1) Authorizations remaining as of December 31, 2019 $ 41,132 Additional authorizations — Repurchases paid 210,151 (1,682) Repurchases unsettled — Authorizations remaining as of June 30, 2020 $ 39,450 (1) Amount excludes commissions paid associated with share repurchases. The following table presents dividends declared (on a per share basis) of Class A common stock for the six months ended June 30, 2021 and 2020: Declaration Date Dividend per Share March 15, 2021 $ 0.20 June 15, 2021 $ 0.20 Total $ 0.40 February 27, 2020 $ 0.34 May 28, 2020 $ 0.20 Total $ 0.54 Changes in Accumulated Other Comprehensive Income The following table presents changes in accumulated other comprehensive income related to the cumulative difference between the fair market value and the amortized cost basis of securities classified as available for sale for the six months ended June 30, 2021 and 2020 ($ in thousands): Accumulated Other Comprehensive Income (Loss) Accumulated Other Comprehensive Income (Loss) of Noncontrolling Interests Total Accumulated Other Comprehensive Income (Loss) December 31, 2020 $ (10,463) $ (2) $ (10,465) Other comprehensive income (loss) 8,252 — 8,252 June 30, 2021 $ (2,211) $ (2) $ (2,213) Accumulated Other Comprehensive Income (Loss) Accumulated Other Comprehensive Income (Loss) of Noncontrolling Interests Total Accumulated Other Comprehensive Income (Loss) December 31, 2019 $ 4,218 $ 477 $ 4,695 Other comprehensive income (loss) (46,530) (5,354) (51,884) Exchange of noncontrolling interest for common stock (4,915) 4,915 — Rebalancing of ownership percentage between Company and Operating Partnership 2,147 (2,147) — June 30, 2020 $ (45,080) $ (2,109) $ (47,189) |
NONCONTROLLING INTERESTS
NONCONTROLLING INTERESTS | 6 Months Ended |
Jun. 30, 2021 | |
Noncontrolling Interest [Abstract] | |
NONCONTROLLING INTERESTS | 12. NONCONTROLLING INTERESTS There are two main types of noncontrolling interest reflected in the Company’s consolidated financial statements (i) noncontrolling interest in the operating partnership and (ii) noncontrolling interests in consolidated joint ventures. Noncontrolling Interest in the Operating Partnership As more fully described in Note 1, certain of the predecessor equity owners held interests in the Operating Partnership as modified by the IPO Transactions. These interests were subsequently further modified by the REIT Structuring Transactions (also described in Note 1). These interests, along with the Class B common stock held by these investors, were exchangeable for Class A common stock of the Company. The roll-forward of the Operating Partnership’s LP Units followed the Class B common stock of the Company as disclosed in the consolidated statements of changes in equity. As of September 30, 2020, all shares of Class B common stock have been exchanged for shares of Class A common stock, and the Company held a 100% interest in LCFH. Pursuant to ASC 810, Consolidation , on the accounting and reporting for noncontrolling interests and changes in ownership interests of a subsidiary, changes in a parent’s ownership interest (and transactions with noncontrolling interest unitholders in the subsidiary), while the parent retains its controlling interest in its subsidiary, should be accounted for as equity transactions. The carrying amount of the noncontrolling interest shall be adjusted to reflect the change in its ownership interest in the subsidiary, with the offset to equity attributable to the parent. There were no changes in ownership interest for the three months ended June 30, 2021. Noncontrolling Interests in Consolidated Joint Ventures As of June 30, 2021, the Company consolidates four ventures in which there are other noncontrolling investors, which own between 10.0% - 25.0% of such ventures. These ventures hold investments in a 40-building student housing portfolio in Isla Vista, CA with a book value of $81.2 million, 11 office buildings in Richmond, VA with a book value of $71.4 million, a single-tenant office building in Oakland County, MI with a book value of $8.7 million and an apartment complex in Miami, FL with a book value of $36.8 million. The Company makes distributions and allocates income from these ventures to the noncontrolling interests in accordance with the terms of the respective governing agreements. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | 13. EARNINGS PER SHARE The Company’s net income (loss) and weighted average shares outstanding for the three and six months ended June 30, 2021 and 2020 consist of the following: Three Months Ended June 30, Six Months Ended June 30, ($ in thousands except share amounts) 2021 2020 2021 2020 Basic Net income (loss) available for Class A common shareholders $ 10,294 $ (4,189) $ 10,489 $ (19,918) Diluted Net income (loss) available for Class A common shareholders $ 10,294 $ (4,189) $ 10,489 $ (19,918) Weighted average shares outstanding Basic 124,048,999 106,809,987 124,012,683 106,569,892 Diluted 124,480,487 106,809,987 124,353,202 106,569,892 The calculation of basic and diluted net income (loss) per share amounts for the three and six months ended June 30, 2021 and 2020 consist of the following: Three Months Ended June 30, Six Months Ended June 30, (In thousands except share and per share amounts) 2021 2020 2021(1) 2020(1) Basic Net Income (Loss) Per Share of Class A Common Stock Numerator : Net income (loss) attributable to Class A common shareholders $ 10,294 $ (4,189) $ 10,489 $ (19,918) Denominator : Weighted average number of shares of Class A common stock outstanding 124,048,999 106,809,987 124,012,683 106,569,892 Basic net income (loss) per share of Class A common stock $ 0.08 $ (0.04) $ 0.08 $ (0.19) Diluted Net Income (Loss) Per Share of Class A Common Stock Numerator: Net income (loss) attributable to Class A common shareholders $ 10,294 $ (4,189) $ 10,489 $ (19,918) Diluted net income (loss) attributable to Class A common shareholders 10,294 (4,189) 10,489 (19,918) Denominator: Basic weighted average number of shares of Class A common stock outstanding 124,048,999 106,809,987 124,012,683 106,569,892 Add - dilutive effect of: Incremental shares of unvested Class A restricted stock(2) 431,488 — 340,519 — Incremental shares of unvested stock options — — — — Diluted weighted average number of shares of Class A common stock outstanding 124,480,487 106,809,987 124,353,202 106,569,892 Diluted net income (loss) per share of Class A common stock $ 0.08 $ (0.04) $ 0.08 $ (0.19) (1) For the three and six months ended June 30, 2020, shares issuable relating to converted Class B common shareholders are excluded from the calculation of diluted EPS as the inclusion of such potential common shares in the calculation would be anti-dilutive. (2) The Company is using the treasury stock method. |
STOCK BASED AND OTHER COMPENSAT
STOCK BASED AND OTHER COMPENSATION PLANS | 6 Months Ended |
Jun. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
STOCK BASED AND OTHER COMPENSATION PLANS | 14. STOCK BASED AND OTHER COMPENSATION PLANS The following table summarizes the impact on the consolidated statement of operations of the various stock based and other compensation plans ($ in thousands): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Stock Based Compensation Expense $ 3,524 $ 2,712 $ 8,801 $ 16,738 Phantom Equity Investment Plan — 561 22 (1,577) Stock Options Exercised — — — 270 Bonus Expense 1,850 — 2,300 (30) Total $ 5,374 $ 3,273 $ 11,123 $ 15,401 Summary of Stock and Shares Nonvested/Outstanding A summary of the grants is presented below: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Number Weighted Number Weighted Number Weighted Number Weighted Grants - Class A Common Stock — — — — 747,713 $ 9.81 1,466,337 $ 18.72 The table below presents the number of unvested shares and outstanding stock options at June 30, 2021 and changes during 2021 of the Class A common stock and stock options of Ladder Capital Corp granted under the 2014 Omnibus Incentive Plan: Restricted Stock Stock Options Nonvested/Outstanding at December 31, 2020 2,800,824 681,102 Granted 747,713 — Exercised — — Vested (982,998) — Forfeited (327,143) — Expired — — Nonvested/Outstanding at June 30, 2021 2,238,396 681,102 Exercisable at June 30, 2021 681,102 At June 30, 2021 there was $18.6 million of total unrecognized compensation cost related to certain share-based compensation awards that is expected to be recognized over a period of up to 24.6 months, with a weighted-average remaining vesting period of 31 months. 2014 Omnibus Incentive Plan In connection with the IPO Transactions, the 2014 Ladder Capital Corp Omnibus Incentive Equity Plan (the “2014 Omnibus Incentive Plan”) was adopted by the board of directors on February 11, 2014, and provides certain members of management, employees and directors of the Company or its affiliates with additional incentives including grants of stock options, stock appreciation rights, restricted stock, other stock-based awards and other cash-based awards. Annual Incentive Awards Granted in 2021 with respect to 2020 Performance On January 1, 2021, in connection with 2020 compensation, annual stock awards were granted to non-management employees (“Non-Management Grantees”) with an aggregate fair value of $7.0 million, which represents 711,653 shares of Class A common stock. Approximately one-third of the awards to Non-Management Grantees were unrestricted, with another one-third of the awards subject to time-based vesting criteria, and the remaining one-third subject to attainment of the Performance Target for the applicable years. The one-third of awards subject to attainment of the Performance Target is also subject to the Performance Waiver and Catch-Up Provision, each described below. The time-vesting restricted stock will vest in three installments on February 18 of each of 2022, 2023 and 2024, subject to continued employment on the applicable vesting dates. Fair value for all restricted and unrestricted stock grants was calculated using the most recent closing stock price prior to the grant date (due to markets being closed on the grant date). Compensation expense for unrestricted stock grants was expensed immediately. The Company has elected to recognize the compensation expense related to the time-based vesting of the annual restricted stock awards for the entire award on a straight-line basis over the requisite service period for the entire award. Restricted stock subject to performance criteria is eligible to vest in three equal installments upon the compensation committee’s confirmation that the Company achieves a return on equity, based on distributable earnings divided by the Company’s average book value of equity, equal to or greater than 8% for such year (the “Performance Target”) for the years ended December 31, 2021, 2022 and 2023, respectively. If the Company misses the Performance Target during either the first or second calendar year but meets the Performance Target for a subsequent year during the three year performance period and the Company’s return on equity for such subsequent year and any years for which it missed its Performance Target equals or exceeds the compounded return on equity of 8% based on distributable earnings divided by the Company’s average book value of equity, the performance-vesting restricted stock which failed to vest because the Company previously missed its Performance Target will vest subject to continued employment on the applicable vesting date (the “Catch-Up Provision”). Accruals of compensation cost for an award with a performance condition shall be based on the probable outcome of that performance condition. Therefore, compensation cost shall be accrued if it is probable that the performance condition will be achieved and shall not be accrued if it is not probable that the performance condition will be achieved. On May 27, 2020, the compensation committee of the board of directors used its discretion to waive the Performance Target for shares eligible to vest based on the Company’s performance in 2020 and 2021, subject to continued employment on the applicable vesting dates (the “Performance Waiver”). The Performance Waiver was made in recognition of the actions taken by Ladder’s employees in response to COVID-19 that, while in the best interests of the Company and its shareholders, would not produce earnings consistent with the Performance Target in their deferred compensation arrangements. Such actions included maintaining high levels of unrestricted cash liquidity and refinancing debt with more expensive non-mark-to-market funding sources. As of June 30, 2021, there were 42 Ladder employees and one consultant eligible for the 2021 Performance Waiver. Other 2021 Restricted Stock Awards On February 18, 2021, certain members of the board of directors each received annual restricted stock awards with a grant date fair value of $0.4 million, representing 36,060 shares of restricted Class A common stock, which will vest in full on the first anniversary of the date of grant, subject to continued service on the board of directors. Compensation expense related to the time-based vesting criteria of the award shall be recognized on a straight-line basis over the one-year vesting period. Change in Control In the event a Non-Management Grantee is terminated by the Company without cause within six months of certain changes in control (as defined in the respective award agreements), all unvested time shares shall vest on the termination date and all unvested performance shares shall remain outstanding and be eligible to vest (or be forfeited) in accordance with the performance conditions. The compensation committee retains the right, in its sole discretion, to provide for the accelerated vesting (in whole or in part) of the restricted stock awards granted. Ladder Capital Corp Deferred Compensation Plan As of December 31, 2020, there were 165,735 phantom units outstanding in the 2014 Deferred Compensation Plan, of which zero were unvested, resulting in a liability of $1.6 million, which is included in accrued expenses on the consolidated balance sheets. As of June 30, 2021, the deferred compensation plan ended as the liability had been fully paid. Bonus Payments On December 16, 2020, the board of directors of Ladder Capital Corp approved the 2020 bonus payments to employees, including officers, totaling $36.8 million of which $35.7 million consisted of equity based compensation. Of the total approved amount, there was $29.4 million of equity based compensation granted in 2020. During the six months ended June 30, 2021, the Company recorded $2.3 million of compensation expense related to bonuses. For the three and six months ended June 30, 2020, the Company did not record any bonus expense. For the six months ended June 30, 2021, the Company paid $2.3 million compensation expense related to bonuses accrued during the year ended December 31, 2020. |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | 15. FAIR VALUE OF FINANCIAL INSTRUMENTS Fair value is based upon internal models, using market quotations, broker quotations, counterparty quotations or pricing services quotations, which provide valuation estimates based upon reasonable market order indications and are subject to significant variability based on market conditions, such as interest rates, credit spreads and market liquidity. The fair value of the mortgage loan receivables held for sale is based upon a securitization model utilizing market data from recent securitization spreads and pricing. Fair Value Summary Table The carrying values and estimated fair values of the Company’s financial instruments, which are both reported at fair value on a recurring basis (as indicated) or amortized cost/par, at June 30, 2021 and December 31, 2020 are as follows ($ in thousands): June 30, 2021 Weighted Average Outstanding Amortized Cost Basis/Purchase Price Fair Value Fair Value Method Yield Remaining Assets: CMBS(1) $ 677,025 $ 677,901 $ 674,558 Internal model, third-party inputs 1.65 % 2.07 CMBS interest-only(1) 1,399,645 (2) 18,072 18,820 Internal model, third-party inputs 2.00 % 2.01 GNMA interest-only(3) 63,305 (2) 635 699 Internal model, third-party inputs 4.79 % 3.39 Agency securities(1) 568 572 580 Internal model, third-party inputs 1.60 % 0.97 GNMA permanent securities(1) 24,040 24,171 24,547 Internal model, third-party inputs 3.54 % 1.18 Provision for current expected credit reserves N/A (20) (20) (5) N/A N/A Mortgage loan receivables held for investment, net, at amortized cost: Mortgage loan receivables held for investment, net, at amortized cost 2,548,013 2,531,048 2,424,602 Discounted Cash Flow(4) 5.80 % 1.81 Allowance for current expected credit reserves N/A (35,891) (35,891) (5) N/A N/A Mortgage loan receivables held for sale 59,198 59,182 62,295 Internal model, third-party inputs(6) 4.25 % 9.81 FHLB stock(7) 12,960 12,960 12,960 (7) 3.00 % N/A Liabilities: Repurchase agreements - short-term 390,217 390,217 390,217 Discounted Cash Flow(9) 0.98 % 0.23 Repurchase agreements - long-term 135,483 135,483 135,483 Discounted Cash Flow(10) 1.89 % 1.48 Mortgage loan financing 742,410 745,971 764,159 Discounted Cash Flow(10) 4.84 % 3.7 Secured financing facility 152,143 152,143 152,143 Discounted Cash Flow(9) 10.75 % 1.85 CLO debt 168,843 168,843 168,843 Discounted Cash Flow(10) 5.50 % 2.88 Borrowings from the FHLB 288,000 288,000 288,712 Discounted Cash Flow 1.07 % 2.26 Senior unsecured notes 2,115,644 2,095,059 2,123,832 Internal model, third-party inputs 4.81 % 4.22 Nonhedge derivatives(1)(8) 202,571 N/A 368 Counterparty quotations N/A 0.25 (1) Measured at fair value on a recurring basis with the net unrealized gains or losses recorded as a component of other comprehensive income (loss) in equity. (2) Represents notional outstanding balance of underlying collateral. (3) Measured at fair value on a recurring basis with the net unrealized gains or losses recorded in current period earnings. (4) Fair value for floating rate mortgage loan receivables, held for investment is estimated to approximate the outstanding face amount given the short interest rate reset risk (30 days) and no significant change in credit risk. Fair value for fixed rate mortgage loan receivables, held for investment is measured using a discounted cash flow model. (5) Fair value is estimated to equal par value. (6) Fair value for mortgage loan receivables, held for sale is measured using a hypothetical securitization model utilizing market data from recent securitization spreads and pricing. (7) Fair value of the FHLB stock approximates outstanding face amount as the Company’s captive insurance subsidiary is restricted from trading the stock and can only put the stock back to the FHLB, at the FHLB’s discretion, at par. (8) The outstanding face amount of the nonhedge derivatives represents the notional amount of the underlying contracts. (9) Fair value for repurchase agreement liabilities - short term borrowings under the Secured Financing Facility and borrowings under the Revolving Credit Facility is estimated to approximate carrying amount primarily due to the short interest rate reset risk (30 days) of the financings and the high credit quality of the assets collateralizing these positions. If the collateral is determined to be impaired, the related financing would be revalued accordingly. There are no impairments on any positions. (10) For repurchase agreements - long term, mortgage loan financing, and CLO debt, the carrying value approximates the fair value discounting the expected cash flows at current market rates. If the collateral is determined to be impaired, the related financing would be revalued accordingly. There are no impairments on any positions. December 31, 2020 Weighted Average Outstanding Amortized Fair Value Fair Value Method Yield Remaining Assets: CMBS(1) $ 1,015,520 $ 1,015,282 $ 1,003,301 Internal model, third-party inputs 1.56 % 2.01 CMBS interest-only(1) 1,498,181 (2) 21,567 22,213 Internal model, third-party inputs 3.53 % 2.19 GNMA interest-only(3) 75,350 (2) 868 1,001 Internal model, third-party inputs 5.06 % 3.59 Agency securities(1) 586 593 605 Internal model, third-party inputs 1.64 % 1.26 GNMA permanent securities(1) 30,254 30,340 31,199 Internal model, third-party inputs 3.49 % 1.98 Provision for current expected credit losses N/A (20) (20) (5) N/A N/A Mortgage loan receivables held for investment, net, at amortized cost: Mortgage loan receivables held for investment, net, at amortized cost 2,365,204 2,354,059 2,328,441 Discounted Cash Flow(4) 6.67 % 1.07 Allowance for current expected credit losses N/A (41,507) (41,507) (5) N/A N/A Mortgage loan receivables held for sale 30,478 30,518 32,082 Internal model, third-party inputs(6) 4.05 % 9.18 FHLB stock(7) 31,000 31,000 31,000 (7) 3.00 % N/A Nonhedge derivatives(1)(8) 65,600 N/A 299 Counterparty quotations N/A 0.25 Liabilities: Repurchase agreements - short-term 708,833 708,833 708,833 Discounted Cash Flow(9) 1.16 % 0.34 Repurchase agreements - long-term 112,004 112,004 112,004 Discounted Cash Flow(10) 9.47 % 2.21 Revolving credit facility 266,430 266,430 266,430 Discounted Cash Flow(9) 3.15 % 0.07 Mortgage loan financing 761,793 766,064 786,405 Discounted Cash Flow(10) 4.84 % 4.04 Secured financing facility 192,646 192,646 192,646 Discounted Cash Flow(9) 10.75 % 2.35 CLO debt 276,516 276,516 276,516 Discounted Cash Flow(10) 5.50 % 3.38 Borrowings from the FHLB 288,000 288,000 289,091 Discounted Cash Flow 1.12 % 2.76 Senior unsecured notes 1,612,299 1,599,371 1,607,930 Internal model, third-party inputs 4.90 % 3.89 (1) Measured at fair value on a recurring basis with the net unrealized gains or losses recorded as a component of other comprehensive income (loss) in equity. (2) Represents notional outstanding balance of underlying collateral. (3) Measured at fair value on a recurring basis with the net unrealized gains or losses recorded in current period earnings. (4) Fair value for floating rate mortgage loan receivables, held for investment is estimated to approximate the outstanding face amount given the short interest rate reset risk (30 days) and no significant change in credit risk. Fair value for fixed rate mortgage loan receivables, held for investment is measured using a discounted cash flow model. (5) Fair value is estimated to equal par value. (6) Fair value for mortgage loan receivables, held for sale is measured using a hypothetical securitization model utilizing market data from recent securitization spreads and pricing. (7) Fair value of the FHLB stock approximates outstanding face amount as the Company’s captive insurance subsidiary is restricted from trading the stock and can only put the stock back to the FHLB, at the FHLB’s discretion, at par. (8) The outstanding face amount of the nonhedge derivatives represents the notional amount of the underlying contracts. (9) Fair value for repurchase agreement liabilities - short term borrowings under the secured financing facility and borrowings under the revolving credit facility is estimated to approximate carrying amount primarily due to the short interest rate reset risk (30 days) of the financings and the high credit quality of the assets collateralizing these positions. If the collateral is determined to be impaired, the related financing would be revalued accordingly. There are no impairments on any positions. (10) For repurchase agreements - long term, mortgage loan financing, and CLO debt the carrying value approximates the fair value discounting the expected cash flows at current market rates. If the collateral is determined to be impaired, the related financing would be revalued accordingly. There are no impairments on any positions. The following table summarizes the Company’s financial assets and liabilities, which are both reported at fair value on a recurring basis (as indicated) or amortized cost/par, at June 30, 2021 and December 31, 2020 ($ in thousands): June 30, 2021 Financial Instruments Reported at Fair Value on Consolidated Statements of Financial Condition Outstanding Face Fair Value Level 1 Level 2 Level 3 Total Assets: CMBS(1) $ 665,558 $ — $ — $ 663,528 $ 663,528 CMBS interest-only(1) 1,389,135 (2) — — 18,215 18,215 GNMA interest-only(3) 63,305 (2) — — 699 699 Agency securities(1) 568 — — 580 580 GNMA permanent securities(1) 24,040 — — 24,547 24,547 $ — $ — $ 707,569 $ 707,569 Liabilities: Nonhedge derivatives(4) 202,571 $ — $ 368 $ — $ 368 Financial Instruments Not Reported at Fair Value on Consolidated Statements of Financial Condition Outstanding Face Fair Value Level 1 Level 2 Level 3 Total Assets: Mortgage loan receivable held for investment, net, at amortized cost: Mortgage loan receivables held for investment, net, at amortized cost $ 2,548,013 $ — $ — $ 2,424,602 $ 2,424,602 Allowance for current expected credit losses N/A — — (35,891) (35,891) Mortgage loan receivable held for sale 59,198 — — 62,295 62,295 CMBS(5) 11,467 — — 11,030 11,030 CMBS interest-only(5) 10,510 — — 605 605 Allowance for current expected credit losses N/A — — (20) (20) FHLB stock 12,960 — — 12,960 12,960 $ — $ — $ 2,475,581 $ 2,475,581 Liabilities: Repurchase agreements - short-term 390,217 $ — $ — $ 390,217 $ 390,217 Repurchase agreements - long-term 135,483 — — 135,483 135,483 Revolving credit facility — — — — — Mortgage loan financing 742,410 — — 764,159 764,159 Secured financing facility 152,143 — — 152,143 152,143 CLO debt 168,843 — — 168,843 168,843 Borrowings from the FHLB 288,000 — — 288,712 288,712 Senior unsecured notes 2,115,644 — — 2,123,832 2,123,832 $ — $ — $ 4,023,389 $ 4,023,389 (1) Measured at fair value on a recurring basis with the net unrealized gains or losses recorded as a component of other comprehensive income (loss) in equity. (2) Represents notional outstanding balance of underlying collateral. (3) Measured at fair value on a recurring basis with the net unrealized gains or losses recorded in current period earnings. (4) Measured at fair value on a recurring basis with the net unrealized gains or losses recorded in current period earnings. The outstanding face amount of the nonhedge derivatives represents the notional amount of the underlying contracts. (5) Restricted securities which are designated as risk retention securities under the Dodd-Frank Act and are therefore subject to transfer restrictions over the term of the securitization trust, which are classified as held-to-maturity and reported at amortized cost. December 31, 2020 Financial Instruments Reported at Fair Value on Consolidated Statements of Financial Condition Outstanding Face Fair Value Level 1 Level 2 Level 3 Total Assets: CMBS(1) $ 1,003,998 $ — $ — $ 992,227 $ 992,227 CMBS interest-only(1) 1,487,616 (2) — — 21,538 21,538 GNMA interest-only(3) 75,350 (2) — — 1,001 1,001 Agency securities(1) 586 — — 605 605 GNMA permanent securities(1) 30,254 — — 31,199 31,199 Equity securities N/A — — — — Nonhedge derivatives(4) 65,600 — 299 — 299 $ — $ 299 $ 1,046,570 $ 1,046,869 Financial Instruments Not Reported at Fair Value on Consolidated Statements of Financial Condition Outstanding Face Fair Value Level 1 Level 2 Level 3 Total Assets: Mortgage loan receivable held for investment, net, at amortized cost: Mortgage loan receivables held for investment, net, at amortized cost $ 2,365,204 $ — $ — $ 2,328,441 $ 2,328,441 Allowance for loan losses N/A — — (41,507) (41,507) Mortgage loan receivables held for sale 30,478 — — 32,082 32,082 CMBS(5) 11,523 — — 11,074 11,074 CMBS interest-only(5) 10,566 (2) — — 675 675 Allowance for current expected credit losses N/A — — (20) (20) FHLB stock 31,000 — — 31,000 31,000 $ — $ — $ 2,361,745 $ 2,361,745 Liabilities: Repurchase agreements - short-term 708,833 $ — $ — $ 708,833 $ 708,833 Repurchase agreements - long-term 112,004 — — 112,004 112,004 Revolving credit facility 266,430 — — 266,430 266,430 Mortgage loan financing 761,793 — — 786,405 786,405 Secured financing facility 192,646 — — 192,646 192,646 CLO debt 276,516 — — 276,516 276,516 Borrowings from the FHLB 288,000 — — 289,091 289,091 Senior unsecured notes 1,612,299 — — 1,607,930 1,607,930 $ — $ — $ 4,239,855 $ 4,239,855 (1) Measured at fair value on a recurring basis with the net unrealized gains or losses recorded as a component of other comprehensive income (loss) in equity. (2) Represents notional outstanding balance of underlying collateral. (3) Measured at fair value on a recurring basis with the net unrealized gains or losses recorded in current period earnings. (4) Measured at fair value on a recurring basis with the net unrealized gains or losses recorded in current period earnings. The outstanding face amount of the nonhedge derivatives represents the notional amount of the underlying contracts. (5) Restricted securities which are designated as risk retention securities under the Dodd-Frank Act and are therefore subject to transfer restrictions over the term of the securitization trust, which are classified as held-to-maturity and reported at amortized cost. The following table summarizes changes in Level 3 financial instruments reported at fair value on the consolidated statements of financial condition for the six months ended June 30, 2021 and 2020 ($ in thousands): Six Months Ended June 30, Level 3 2021 2020 Balance at January 1, $ 1,046,569 $ 1,695,913 Transfer from level 2 — — Purchases 101,358 437,536 Sales (339,238) (517,535) Paydowns/maturities (106,197) (52,271) Amortization of premium/discount (3,702) (4,278) Unrealized gain/(loss) 8,184 (51,709) Realized gain/(loss) on sale(1) 595 (12,773) Balance at June 30, $ 707,569 $ 1,494,883 (1) Includes realized losses on securities recorded as other than temporary impairments. The following is quantitative information about significant unobservable inputs in our Level 3 measurements for those assets and liabilities measured at fair value on a recurring basis ($ in thousands): June 30, 2021 Financial Instrument Carrying Value Valuation Technique Unobservable Input Minimum Weighted Average Maximum CMBS(1) $ 663,528 Discounted cash flow Yield (4) (0.13) % 1.88 % 11.47 % Duration (years)(5) 0 1.93 8.79 CMBS interest-only(1) 18,215 (2) Discounted cash flow Yield (4) 0.50 % 2.94 % 5.09 % Duration (years)(5) 0.15 1.93 2.82 Prepayment speed (CPY)(5) 100.00 100.00 100.00 GNMA interest-only(3) 699 (2) Discounted cash flow Yield (4) — % 9.36 % 40.60 % Duration (years)(5) 0 2.56 5.81 Prepayment speed (CPJ)(5) 5.00 18.60 35.00 Agency securities(1) 580 Discounted cash flow Yield (4) 0.58 % 0.65 % 1.16 % Duration (years)(5) 0 0.84 0.96 GNMA permanent securities(1) 24,547 Discounted cash flow Yield (4) 2.67 % 3.48 % 3.79 % Duration (years)(5) 1.8 3.37 3.42 Total $ 707,569 (1) CMBS, CMBS interest-only securities, Agency securities, GNMA construction securities, GNMA permanent securities and corporate bonds are classified as available-for-sale and reported at fair value with changes in fair value recorded in the current period in other comprehensive income. (2) The amounts presented represent the principal amount of the mortgage loans outstanding in the pool in which the interest-only securities participate. (3) Agency interest-only securities are recorded at fair value with changes in fair value recorded in current period earnings. Sensitivity of the Fair Value to Changes in the Unobservable Inputs (4) Significant increase (decrease) in the unobservable input in isolation would result in significantly lower (higher) fair value measurement. (5) Significant increase (decrease) in the unobservable input in isolation would result in either a significantly lower or higher (lower or higher) fair value measurement depending on the structural features of the security in question. December 31, 2020 Financial Instrument Carrying Value Valuation Technique Unobservable Input Minimum Weighted Average Maximum CMBS(1) $ 992,226 Discounted cash flow Yield (3) — % 2.09 % 23.85 % Duration (years)(4) 0.00 2.68 5.82 CMBS interest-only(1) 21,537 (2) Discounted cash flow Yield (3) 0.56 % 2.51 % 9.94 % Duration (years)(4) 0.12 2.23 3.15 Prepayment speed (CPY)(4) 100.00 100.00 100.00 GNMA interest-only(3) 1,001 (2) Discounted cash flow Yield (4) — % 7.93 % 35.82 % Duration (years)(5) 0.00 2.80 6.79 Prepayment speed (CPJ)(5) 5.00 17.78 35.00 Agency securities(1) 605 Discounted cash flow Yield (4) 0.44 % 11.31 % 72.00 % Duration (years)(5) 0.00 1.23 1.44 GNMA permanent securities(1) 31,199 Discounted cash flow Yield (4) — % 2.99 % 3.47 % Duration (years)(5) 1.57 9.74 14.57 Total $ 1,046,568 (1) CMBS, CMBS interest-only securities, Agency securities, GNMA construction securities, GNMA permanent securities and corporate bonds are classified as available-for-sale and reported at fair value with changes in fair value recorded in the current period in other comprehensive income. (2) The amounts presented represent the principal amount of the mortgage loans outstanding in the pool in which the interest-only securities participate. (3) Agency interest-only securities are recorded at fair value with changes in fair value recorded in current period earnings. Sensitivity of the Fair Value to Changes in the Unobservable Inputs (4) Significant increase (decrease) in the unobservable input in isolation would result in significantly lower (higher) fair value measurement. (5) Significant increase (decrease) in the unobservable input in isolation would result in either a significantly lower or higher (lower or higher) fair value measurement depending on the structural features of the security in question. Nonrecurring Fair Values The Company measures fair value of certain assets on a nonrecurring basis when events or changes in circumstances indicate that the carrying value of the assets may be impaired. Adjustments to fair value generally result from the application of lower of amortized cost or fair value accounting for assets held for sale or write-down of assets value due to impairment. Refer to Note 3, Mortgage Loan Receivables and Note 5, Real Estate and Related Lease Intangibles, Net for disclosure of level 3 inputs. |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 16. INCOME TAXES The Company elected to be taxed as a REIT under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended (the “Code”), commencing with the taxable year ended December 31, 2015 (the REIT Election”). As such, the Company’s income is generally not subject to U.S. federal, state and local corporate income taxes other than as described below. Certain of the Company’s subsidiaries have elected to be treated as TRSs. TRSs permit the Company to participate in certain activities from which REITs are generally precluded, as long as these activities meet specific criteria, are conducted within the parameters of certain limitations established by the Code, and are conducted in entities which elect to be treated as taxable subsidiaries under the Code. To the extent these criteria are met, the Company will continue to maintain its qualification as a REIT. The Company’s TRSs are not consolidated for U.S. federal income tax purposes, but are instead taxed as corporations. For financial reporting purposes, a provision for current and deferred taxes is established for the portion of earnings recognized by the Company with respect to its interest in TRSs. Current income tax expense (benefit) was $0.9 million and $(1.1) million for the three and six months ended June 30, 2021, respectively. Current income tax expense (benefit) was $1.6 million and $(15.0) million for the three and six months ended June 30, 2020, respectively. As of June 30, 2021 and December 31, 2020, the Company’s net deferred tax assets (liabilities) were $(2.0) million and $(2.0) million, respectively, and are included in other assets (other liabilities) in the Company’s consolidated balance sheets. Deferred income tax expense (benefit) included within the provision for income taxes was $(1.2) million and $(2.1) million for the three months ended June 30, 2021, and June 30, 2020 respectively. There was no deferred income tax expense (benefit) for the six months ended June 30, 2021, and $9.9 million for the six months ended June 30, 2020. The Company’s net deferred tax liability is comprised of deferred tax assets and deferred tax liabilities. The Company believes it is more likely than not that the deferred tax assets (aside from the exception noted below) will be realized in the future. Realization of the deferred tax assets is dependent upon our generation of sufficient taxable income in future years in appropriate tax jurisdictions to obtain benefit from the reversal of temporary differences. The amount of deferred tax assets considered realizable is subject to adjustment in future periods if estimates of future taxable income change. As of June 30, 2021, the Company had a deferred tax asset of $4.9 million relating to capital losses which it may only use to offset capital gains. These tax attributes will begin to expire if unused in 2022. As the realization of these assets are not more likely than not before their expiration, the Company provided a full valuation allowance against this deferred tax asset. Additionally, as of June 30, 2021, the Company had $1.5 million of deferred tax asset related to Code Section 163(j) interest expense limitation. As the Company is uncertain if this asset will be realized in the future, the Company provided a full valuation allowance against this deferred tax asset. The Company has historically calculated its tax provision during quarterly reporting periods by applying an annual effective tax rate (“AETR”) for the full year to the income for the reporting period; however, for the three and six months ended June 30, 2020, the Company used a discrete effective tax rate method to calculate taxes, given that, based on the projections of income at the time, the Company was unable to determine a reliable AETR. The Company has returned to using an AETR for the full year to income for the current reporting period. The Company’s tax returns are subject to audit by taxing authorities. Generally, as of June 30, 2021, the tax years 2017-2020 remain open to examination by the major taxing jurisdictions in which the Company is subject to taxes. The Company is currently under New York City audit for tax years 2012-2013. Several of the Company’s subsidiary entities are under New York State audit for tax years 2015-2018. The Company does not expect these audits to result in any material changes to the Company’s financial position. The Company does not expect tax expense to have an impact on either short, or long-term liquidity or capital needs. Under U.S. GAAP, a tax benefit related to an income tax position may be recognized when it is more likely than not that the position will be sustained upon examination by the tax authorities based on the technical merits of the position. In addition, the Company does not believe that it has any tax positions for which it is reasonably possible that it will be required to record a significant liability for unrecognized tax benefits within the next twelve months. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 6 Months Ended |
Jun. 30, 2021 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | 17. RELATED PARTY TRANSACTIONS |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 18. COMMITMENTS AND CONTINGENCIES Leases The primary impact of applying ASC Topic 842 was the initial recognition of a $3.5 million lease liability and a $3.3 million right of use asset (including previously accrued straight line rent) on the Company’s consolidated financial statements, for leases classified as operating leases under ASC Topic 840, primarily for the Company’s corporate headquarters and other identified leases. As of June 30, 2021, the Company had a $0.8 million lease liability and a $0.8 million right-of-use asset on its consolidated balance sheets found within other liabilities other assets Investments in Unconsolidated Joint Ventures We have made investments in various unconsolidated joint ventures. See Note 6, Investment in and Advances to Unconsolidated Joint Ventures, for further details of our unconsolidated investments. Our maximum exposure to loss from these investments is limited to the carrying value of our investments. Unfunded Loan Commitments |
SEGMENT REPORTING
SEGMENT REPORTING | 6 Months Ended |
Jun. 30, 2021 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | 19. SEGMENT REPORTING The Company has determined that it has three reportable segments based on how the chief operating decision maker reviews and manages the business. These reportable segments include loans, securities, and real estate. The loans segment includes mortgage loan receivables held for investment (balance sheet loans) and mortgage loan receivables held for sale (conduit loans). The securities segment is composed of all of the Company’s activities related to commercial real estate securities, which include investments in CMBS, U.S. Agency securities, corporate bonds and equity securities. The real estate segment includes net leased properties, office buildings, student housing portfolios, hotels, industrial buildings, a shopping center and condominium units. Corporate/other includes the Company’s investments in joint ventures, other asset management activities and operating expenses. The Company evaluates performance based on the following financial measures for each segment ($ in thousands): Three months ended June 30, 2021 Loans Securities Real Estate (1) Corporate/Other(2) Company Interest income $ 34,253 $ 3,216 $ — $ 108 $ 37,577 Interest expense (13,681) (556) (9,944) (21,045) (45,226) Net interest income (expense) 20,572 2,660 (9,944) (20,937) (7,649) Provision for (release of) loan loss reserves 335 — — 335 Net interest income (expense) after provision for (release of) loan reserves 20,907 2,660 (9,944) (20,937) (7,314) Real estate operating income — — 26,558 — 26,558 Sale of loans, net 3,392 — — — 3,392 Realized gain (loss) on securities — 15 — — 15 Unrealized gain (loss) on Agency interest-only securities — (48) — — (48) Realized gain on sale of real estate, net — 19,389 — 19,389 Impairment of real estate — — — — — Fee and other income 2,295 — 14 142 2,451 Net result from derivative transactions (2,792) (1,052) — — (3,844) Earnings (loss) from investment in unconsolidated joint ventures 78 — 159 — 237 Total other income (loss) 2,973 (1,085) 46,120 142 48,150 Salaries and employee benefits — — — (8,477) (8,477) Operating expenses(3) 29 — — (4,245) (4,216) Real estate operating expenses — — (6,345) — (6,345) Fee expense (944) (61) (1,018) (172) (2,195) Depreciation and amortization — — (9,440) (24) (9,464) Total costs and expenses (915) (61) (16,803) (12,918) (30,697) Income tax (expense) benefit — — — 318 318 Segment profit (loss) $ 22,965 $ 1,514 $ 19,373 $ (33,395) $ 10,457 Total assets as of June 30, 2021 $ 2,554,339 $ 719,183 $ 986,267 $ 1,357,020 $ 5,616,809 Three months ended June 30, 2020 Loans Securities Real Estate (1) Corporate/Other(2) Company Interest income $ 53,641 $ 8,177 $ 2 $ 276 $ 62,096 Interest expense (11,732) (7,795) (9,758) (39,140) (68,425) Net interest income (expense) 41,909 382 (9,756) (38,864) (6,329) Provision for (release of) loan loss reserves 726 3 — — 729 Net interest income (expense) after provision for (release of) loan reserves 42,635 385 (9,756) (38,864) (5,600) Real estate operating income — — 23,773 — 23,773 Sale of loans, net (744) — — — (744) Realized gain (loss) on securities — (14,798) — — (14,798) Unrealized gain (loss) on equity securities — 401 — — 401 Unrealized gain (loss) on Agency interest-only securities — 98 — — 98 Realized gain on sale of real estate, net — — (1) — (1) Fee and other income 2,429 2 — 1,074 3,505 Net result from derivative transactions (588) (225) — — (813) Earnings (loss) from investment in unconsolidated joint ventures — — 471 — 471 Gain (loss) on extinguishment of debt — — — 19,017 19,017 Total other income (loss) 1,097 (14,522) 24,243 20,091 30,909 Salaries and employee benefits — — — (7,001) (7,001) Operating expenses(3) — — — (6,224) (6,224) Real estate operating expenses — — (6,034) — (6,034) Fee expense (1,474) (61) (442) — (1,977) Depreciation and amortization — — (9,791) (25) (9,816) Total costs and expenses (1,474) (61) (16,267) (13,250) (31,052) Income tax (expense) benefit — — — 550 550 Segment profit (loss) $ 42,258 $ (14,198) $ (1,780) $ (31,473) $ (5,193) Total assets as of December 31, 2020 $ 2,343,070 $ 1,058,298 $ 1,031,557 $ 1,448,303 $ 5,881,229 Six months ended June 30, 2021 Loans Securities Real Estate (1) Corporate/Other(2) Company Interest income $ 70,145 $ 6,450 $ — $ 270 76,865 Interest expense (27,757) (1,388) (18,729) (43,325) (91,199) Net interest income (expense) 42,388 5,061 (18,729) (43,056) (14,334) Provision for (release of) loan loss reserves 4,586 — — — 4,586 Net interest income (expense) after provision for (release of) loan reserves 46,974 5,061 (18,729) (43,056) (9,748) Real estate operating income — — 50,718 — 50,718 Sale of loans, net 3,392 — — — 3,392 Realized gain (loss) on securities — 594 — — 594 Unrealized gain (loss) on Agency interest-only securities — (68) — — (68) Realized gain on sale of real estate, net — — 19,389 — 19,389 Fee and other income 5,264 — 47 424 5,735 Net result from derivative transactions 251 676 — — 927 Earnings (loss) from investment in unconsolidated joint ventures 218 — 455 — 673 Total other income (loss) 9,125 1,202 70,609 424 81,360 Salaries and employee benefits — — — (18,011) (18,011) Operating expenses(3) 38 — — (8,495) (8,457) Real estate operating expenses — — (12,555) — (12,555) Fee expense (2,252) (111) (1,140) (290) (3,793) Depreciation and amortization — — (18,950) (50) (19,000) Total costs and expenses (2,214) (111) (32,645) (26,846) (61,816) Income tax (expense) benefit — — — 1,096 1,096 Segment profit (loss) $ 53,885 $ 6,152 $ 19,235 $ (68,382) $ 10,892 Total assets as of June 30, 2021 $ 2,554,339 $ 719,183 $ 986,267 $ 1,357,020 $ 5,616,809 Six months ended June 30, 2020 Loans Securities Real Estate (1) Corporate/Other(2) Company Interest income $ 112,546 $ 21,040 $ 10 $ 1,090 $ 134,686 Interest expense (16,602) (14,554) (19,993) (68,678) (119,827) Net interest income (expense) 95,944 6,486 (19,983) (67,588) 14,859 Provision for (release of) loan loss reserves (25,855) 3 — — (25,852) Net interest income (expense) after provision for (release of) loan reserves 70,089 6,489 (19,983) (67,588) (10,993) Operating lease income — — 50,101 — 50,101 Sale of loans, net 261 — — — 261 Realized gain (loss) on securities — (11,787) — — (11,787) Unrealized gain (loss) on equity securities — (132) — — (132) Unrealized gain (loss) on Agency interest-only securities — 174 — — 174 Realized gain on sale of real estate, net — — 10,528 — 10,528 Impairment of real estate — — — — — Fee and other income 3,854 403 25 742 5,024 Net result from derivative transactions (11,939) (4,309) — — (16,248) Earnings (loss) from investment in unconsolidated joint ventures — — 912 — 912 Gain (loss) on extinguishment of debt — — — 21,077 21,077 Total other income (loss) (7,824) (15,651) 61,566 21,819 59,910 Salaries and employee benefits — — — (24,023) (24,023) Operating expenses(3) — — — (12,018) (12,018) Real estate operating expenses — — (13,981) — (13,981) Fee expense (2,664) (133) (618) — (3,415) Depreciation and amortization — — (19,775) (50) (19,825) Total costs and expenses (2,664) (133) (34,374) (36,091) (73,262) Income tax (expense) benefit — — — 5,091 5,091 Segment profit (loss) $ 59,601 $ (9,295) $ 7,209 $ (76,769) $ (19,254) Total assets as of December 31, 2020 $ 2,343,070 $ 1,058,298 $ 1,031,557 $ 1,448,303 $ 5,881,229 (1) Includes the Company’s investment in unconsolidated joint ventures that held real estate of $37.8 million and $46.3 million as of June 30, 2021 and December 31, 2020, respectively. (2) Corporate/Other represents all corporate level and unallocated items including any intercompany eliminations necessary to reconcile to consolidated Company totals. This segment also includes the Company’s investment in unconsolidated joint ventures and strategic investments that are not related to the other reportable segments above, including the Company’s investment in FHLB stock of $13.0 million and $31.0 million as of June 30, 2021 and December 31, 2020, respectively, and the Company’s senior unsecured notes of $2.1 billion and $1.6 billion as of June 30, 2021 and December 31, 2020, respectively. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Jun. 30, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | 20. SUBSEQUENT EVENTS On July 13, 2021, a consolidated subsidiary of the Company completed a public CLO transaction with a major U.S. bank, which generated $498.2 million of gross proceeds to Ladder, financing $607.5 million of loans (“Contributed Loans”) at an 82% advance rate on a matched term, non-mark-to-market and non-recourse basis. A consolidated subsidiary of the Company retained an 18% subordinate and controlling interest in the CLO. The Company retained control over major decisions made with respect to the administration of the Contributed Loans, including broad discretion in managing these loans, and has the ability to appoint the special servicer under the CLO. |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Accounting and Principles of Consolidation | Basis of Accounting and Principles of Consolidation The accompanying consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). In the opinion of management, the unaudited financial information for the interim periods presented in this report reflects all normal and recurring adjustments necessary for a fair statement of results of operations, financial position and cash flows. The interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2020, which are included in the Annual Report, as certain disclosures that would substantially duplicate those contained in the audited consolidated financial statements have not been included in this interim report. Operating results for interim periods are not necessarily indicative of operating results for an entire fiscal year. The consolidated financial statements include the Company’s accounts and those of its subsidiaries which are majority-owned and/or controlled by the Company and variable interest entities for which the Company has determined itself to be the primary beneficiary, if any. All significant intercompany transactions and balances have been eliminated. Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 810 — Consolidation (“ASC 810”), provides guidance on the identification of entities for which control is achieved through means other than voting rights (“variable interest entities” or “VIEs”) and the determination of which business enterprise, if any, should consolidate the VIEs. Generally, the consideration of whether an entity is a VIE applies when either: (1) the equity investors (if any) lack one or more of the essential characteristics of a controlling financial interest; (2) the equity investment at risk is insufficient to finance that entity’s activities without additional subordinated financial support; or (3) the equity investors have voting rights that are not proportionate to their economic interests and the activities of the entity involve or are conducted on behalf of an investor with a disproportionately small voting interest. The Company consolidates VIEs in which it is considered to be the primary beneficiary. The primary beneficiary is the entity that has both of the following characteristics: (1) the power to direct the activities that, when taken together, most significantly impact the VIE’s performance; and (2) the obligation to absorb losses and right to receive the returns from the VIE that would be significant to the VIE. See Note 10, Consolidated Variable Interest Entities, for further information on the Company’s consolidated variable interest entities. |
Provision for Loan Losses | Provision for Loan Losses The Company uses a current expected credit loss model (“CECL”) for estimating the provision for loan losses on its loan portfolio. The CECL model requires the consideration of possible credit losses over the life of an instrument and includes a portfolio-based component and an asset-specific component. In compliance with the CECL reporting requirements, the Company supplemented its existing credit monitoring and management processes with additional processes to support the calculation of the CECL reserves. As part of that effort, the Company has engaged a third-party service provider to provide market data and a credit loss model. The credit loss model is a forward-looking, econometric, commercial real estate (“CRE”) loss forecasting tool. It is comprised of a probability of default (“PD”) model and a loss given default (“LGD”) model that, layered together with user’s loan-level data, selected forward-looking macroeconomic variables, and pool-level mean loss rates, produces life of loan expected losses (“EL”) at the loan and portfolio level. Where management has determined that the credit loss model does not fully capture certain external factors, including portfolio trends or loan-specific factors, a qualitative adjustment to the reserve, is recorded. The CECL model was implemented in 2020. The asset-specific reserve component relates to reserves for losses on individually impaired loans. The Company evaluates each loan for impairment at least quarterly. Impairment occurs when it is deemed probable that the Company will not be able to collect all amounts due according to the contractual terms of the loan. If the loan is considered to be impaired, an allowance is recorded to reduce the carrying value of the loan to the present value of the expected future cash flows discounted at the loan’s effective rate or the fair value of the collateral, less the estimated costs to sell, if recovery of the Company’s investment is expected solely from the collateral. The Company may use the direct capitalization rate valuation methodology or the sales comparison approach to estimate the fair value of the collateral for such loans and in certain cases will obtain external appraisals and take into account potential sale bids. Determining fair value of the collateral may take into account a number of assumptions including, but not limited to, cash flow projections, market capitalization rates, discount rates and data regarding recent comparable sales of similar properties. Such assumptions are generally based on current market conditions and are subject to economic and market uncertainties. The Company’s loans are typically collateralized by real estate directly or indirectly. As a result, the Company regularly evaluates the extent and impact of any credit deterioration associated with the performance and/or value of the underlying collateral property as well as the financial and operating capability of the borrower/sponsor on a loan-by-loan basis. Specifically, a property’s operating results and any cash reserves are analyzed and used to assess (i) whether cash flow from operations is sufficient to cover the debt service requirements currently and into the future, (ii) the ability of the borrower to refinance the loan at maturity, and/or (iii) the property’s liquidation value. The Company also evaluates the financial wherewithal of any loan guarantors as well as the borrower’s competency in managing and operating the properties. In addition, the Company considers the overall economic environment, real estate sector, and geographic submarket in which the collateral property is located. Such impairment analyses are completed and reviewed by asset management and underwriting personnel, who utilize various data sources, including (i) periodic financial data such as property occupancy, tenant profile, rental rates, operating expenses, the borrowers’ business plan, and capitalization and discount rates, (ii) site inspections, and (iii) current credit spreads and other market data and ultimately presented to management for approval. A loan is also considered impaired if its terms are modified in a troubled debt restructuring (“TDR”). A TDR occurs when a concession is granted and the debtor is experiencing financial difficulties. Impairments on TDR loans are generally measured based on the present value of expected future cash flows discounted at the effective interest rate of the original loans. Generally, when granting concessions, the Company will seek to protect its position by requiring incremental pay downs, additional collateral or guarantees and, in some cases, lookback features or equity interests to offset concessions granted should conditions impacting the loan improve. The Company’s determination of credit losses is impacted by TDRs whereby loans that have gone through TDRs are considered impaired and are assessed for specific reserves. Loans previously restructured under TDRs that subsequently default are reassessed to incorporate the Company’s current assumptions on expected cash flows and additional provision expense is recorded to the extent necessary. The Company designates non-accrual loans generally when (i) the principal or coupon interest components of loan payments become 90-days past due or (ii) in the opinion of the Company, it is doubtful the Company will be able to collect all amounts due according to the contractual terms of the loan. Interest income on non-accrual loans in which the Company reasonably expects a full recovery of the loan’s outstanding principal balance is recognized when received in cash. Otherwise, income recognition will be suspended and any cash received will be applied as a reduction to the amortized cost. A non-accrual loan is returned to accrual status at such time as the loan becomes contractually current and future principal and coupon interest are reasonably assured to be received in accordance with the contractual loan terms. A loan will be written off when management has determined it is no longer realizable and deemed non-recoverable. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, (“ASU 2020-04”). ASU 2020-04 provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions that reference the London Interbank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued because of reference rate reform. ASU 2020-04 is effective upon issuance of ASU 2020-04 for contract modifications and hedging relationships on a prospective basis. While the Company is currently assessing the impact of ASU 2020-04, the Company does not expect the adoption to have a material impact on the Company’s consolidated financial statements. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 815), (“ASU 2019-12”). ASU 2019-12 simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. ASU 2019-12 also improves the consistent application of, and simplifies, GAAP for other areas of Topic 740 by clarifying and amending existing guidance. The standard is effective for all entities for financial statements issued for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. The adoption of ASU 2019-12 did not have a material impact on the Company’s consolidated financial statements. In October 2020, the FASB issued ASU 2020-08, Codification Improvements to Subtopic 310-20, Receivables–Nonrefundable Fees and Other Costs, (“ASU 2020-08”) . This ASU clarifies that an entity should reevaluate whether a callable debt security is within the scope of ASC paragraph 310-20-35-33 for each reporting period. The guidance is effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. All entities should apply ASU 2020-08 on a prospective basis as of the beginning of the period of adoption for existing or newly purchased callable debt securities. The adoption of ASU 2020-08 did not have a material impact on the consolidated financial statements. Recent Accounting Pronouncements Pending Adoption Any new accounting standards not disclosed above that have been issued or proposed by FASB and that do not require adoption until a future date are not expected to have a material impact on the consolidated financial statements upon adoption. |
MORTGAGE LOAN RECEIVABLES (Tabl
MORTGAGE LOAN RECEIVABLES (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Abstract] | |
Schedule of mortgage loan receivables | Outstanding Carrying Weighted Remaining Mortgage loan receivables held for investment, net, at amortized cost: First mortgage loans $ 2,430,910 $ 2,414,167 5.94 % 1.83 Mezzanine loans 117,103 116,881 10.91 % 2.56 Total mortgage loans 2,548,013 2,531,048 6.17 % 1.86 Allowance for credit losses N/A (35,891) Total mortgage loan receivables held for investment, net, at amortized cost 2,548,013 2,495,157 Mortgage loan receivables held for sale: First mortgage loans 59,198 59,182 4.25 % 9.81 Total $ 2,607,211 $ 2,554,339 6.12 % 2.04 (1) Includes the impact from interest rate floors. June 30, 2021 LIBOR rates are used to calculate weighted average yield for floating rate loans. (2) Excludes non-accrual loans of $129.5 million. Refer to “Non-Accrual Status” below for further details. Outstanding Carrying Weighted Remaining Mortgage loan receivables held for investment, net, at amortized cost: First mortgage loans $ 2,243,639 $ 2,232,749 6.50 % 1.00 Mezzanine loans 121,565 121,310 10.83 % 2.42 Total mortgage loans 2,365,204 2,354,059 6.65 % 1.07 Allowance for credit losses N/A (41,507) Total mortgage loan receivables held for investment, net, at amortized cost 2,365,204 2,312,552 Mortgage loan receivables held for sale: First mortgage loans 30,478 30,518 4.05 % 9.18 Total $ 2,395,682 $ 2,343,070 6.74 % 1.23 (1) Includes the impact from interest rate floors. December 31, 2020 LIBOR rates are used to calculate weighted average yield for floating rate loans. (2) Excludes non-accrual loans of $175.0 million. Refer to “Non-Accrual Status” below for further details. |
Summary of mortgage loan receivables by loan type | For the six months ended June 30, 2021 and 2020, the activity in our loan portfolio was as follows ($ in thousands): Mortgage loan receivables held for investment, net, at amortized cost: Mortgage loans receivable Allowance for credit losses Mortgage loan Balance, December 31, 2020 $ 2,354,059 $ (41,507) $ 30,518 Origination of mortgage loan receivables 795,717 — 76,404 Repayment of mortgage loan receivables (532,878) — (80) Proceeds from sales of mortgage loan receivables (46,557) — (51,052) Non-cash disposition of loans via foreclosure(1) (45,000) — — Sale of loans, net — — 3,392 Accretion/amortization of discount, premium and other fees 5,707 — — Release of asset-specific loan loss provision via foreclosure(1) — 1,150 — Provision for current expected credit loss, net (impact to earnings) — 4,466 — Balance, June 30, 2021 $ 2,531,048 $ (35,891) $ 59,182 (1) Refer to Note 5 Real Estate and Related Lease Intangibles, Net for further detail on foreclosure of real estate. Mortgage loan receivables held for investment, net, at amortized cost: Mortgage loans receivable Allowance for credit losses Mortgage loan Balance, December 31, 2019 $ 3,257,036 $ (20,500) $ 122,325 Origination of mortgage loan receivables 334,347 — 212,845 Repayment of mortgage loan receivables (446,080) — (292) Proceeds from sales of mortgage loan receivables (165,364) — (255,827) Non-cash disposition of loan via foreclosure(1) (27,107) — — Sale of loans, net (6,665) — 6,926 Accretion/amortization of discount, premium and other fees 8,917 — — Release of asset-specific loan loss provision via foreclosure(1) — 2,000 — Provision expense for current expected credit loss(implementation impact)(2) — (4,964) — Provision expense for current expected credit loss (impact to earnings)(2) — (17,638) — Additional asset-specific reserve — (8,000) — Balance, June 30, 2020 $ 2,955,084 $ (49,102) $ 85,977 (1) Refer to Note 5, Real Estate and Related Lease Intangibles, Net for further detail on real estate acquired via foreclosure. (2) During the three months ended March 31, 2020, the initial impact of the implementation of the CECL accounting standard as of January 1, 2020 is recorded against retained earnings. Subsequent remeasurement thereafter, including the period to date change for the six months ended June 30, 2020, is accounted for as provision expense for current expected credit loss in the consolidated statements of income. |
Schedule of provision for loan losses | Allowance for Credit Losses and Non-Accrual Status ($ in thousands) Three Months Ended June 30, Six Months Ended June 30, Allowance for Credit Losses 2021 2020 2021 2020 Allowance for credit losses at beginning of period $ 36,241 $ 49,457 $ 41,507 $ 20,500 Provision for current expected credit loss (implementation impact) — — — 4,964 (1) Provision for current expected credit loss, net (impact to earnings)(2) (350) (355) (4,466) 25,638 Foreclosure of loans subject to asset-specific reserve — — (1,150) (2,000) Allowance for credit losses at end of period $ 35,891 $ 49,102 $ 35,891 $ 49,102 (1) Additional provisions for current expected credit losses related to implementation of $0.8 million and $22.0 thousand related to unfunded commitments and held-to-maturity securities, respectively, were recorded on January 1, 2020 at implementation of CECL. (2) For the three months ended June 30, 2021 and 2020 the total provision release consisted of $0.4 million in general reserves and no asset-specific reserves. Non-Accrual Status June 30, 2021 December 31, 2020 Carrying value of loans on non-accrual status, net of asset-specific reserve $ 129,468 (1)(2) $ 175,022 (3) (1) Represents two of the Company’s loans, which were originated simultaneously as part of a single transaction and had a combined carrying value of $24.2 million, two loans with a combined carrying value of $26.3 million, one loan with a carrying value of $36.4 million, one loan with a carrying value of $12.1 million, and one loan with a carrying value of $30.5 million. (2) Subsequent to June 30, 2021, the Company resolved one of its non-accrual loans with a carrying value of $12.1 million. The Company received a full pay-off which included all accrued interest and fees. (3) Represents two of the Company’s loans, which were originated simultaneously as part of a single transaction and had a combined carrying value of $24.2 million, two loans with a combined carrying value of $27.1 million, one loan with a carrying value of $36.4 million, one loan with a carrying value of $13.0 million, one loan with a carrying value of $30.6 million and one loan with a carrying value of $43.8 million which was foreclosed on and sold in 2021. |
Schedule of individually impaired loans | The Company has concluded that none of its loans, other than the three loans discussed below, are individually impaired as of June 30, 2021. Loan Portfolio by Geographic Region, Property Type and Vintage (amortized cost $ in thousands) June 30, December 31, Geographic Region 2021 2020 Northeast $ 688,885 $ 707,485 Southwest 435,247 437,153 South 584,708 313,759 Midwest 336,273 462,602 West 415,284 316,620 Subtotal loans 2,460,397 2,237,619 Individually impaired loans(1) 70,651 116,440 Total loans $ 2,531,048 $ 2,354,059 (1) Refer to “ Individually Impaired Loans ” below for further detail. Management’s method for monitoring credit is the performance of a loan. A loan is impaired or not impaired based on the expectation that all amounts contractually due under a loan will be collected when due. The primary credit quality indicator management utilizes to assess its current expected credit loss reserve is by viewing Ladder’s loan portfolio by collateral type. The following tables as of June 30, 2021 and December 31, 2020, summarize the amortized cost of the loan portfolio by property type ($ in thousands): Amortized Cost Basis by Origination Year as of June 30, 2021 Property Type 2021 2020 2019 2018 2017 and Earlier Total Office $ 261,182 $ 29,548 $ 187,005 $ 206,888 $ 118,911 $ 803,534 Multifamily 175,376 15,083 196,426 13,451 21,085 421,421 Mixed Use 193,744 79,254 147,437 — — 420,435 Hospitality — — 43,621 139,777 111,089 294,487 Retail 29,395 — 85,268 — 36,514 151,177 Manufactured Housing 59,641 — 43,383 11,741 3,951 118,716 Industrial — — 105,283 — 6,453 111,736 Other 20,802 — 44,842 30,033 — 95,677 Self-Storage 43,214 — — — — 43,214 Subtotal loans 783,354 123,885 853,265 401,890 298,003 2,460,397 Individually Impaired loans (1) — — — — 70,651 70,651 Total loans (2) $ 783,354 $ 123,885 $ 853,265 $ 401,890 $ 368,654 $ 2,531,048 Amortized Cost Basis by Origination Year as of December 31, 2020 Property Type 2020 2019 2018 2017 2016 and Earlier Total Office $ — $ 196,610 $ 249,330 $ 83,673 $ 50,935 $ 580,548 Multifamily 65,537 260,254 44,665 24,406 — 394,862 Hospitality — 43,000 139,394 67,307 78,694 328,395 Other 31,217 131,434 77,484 — — 240,135 Mixed Use 106,537 101,704 — 13,268 — 221,509 Retail — 110,492 — — 65,734 176,226 Industrial 46,130 114,630 — — 6,461 167,221 Manufactured Housing 4,553 57,305 11,718 — 3,961 77,537 Self-Storage — 35,986 15,200 — — 51,186 Subtotal loans 253,974 1,051,415 537,791 188,654 205,785 2,237,619 Individually Impaired loans (1) — — 44,952 — 71,488 116,440 Total loans (3) $ 253,974 $ 1,051,415 $ 582,743 $ 188,654 $ 277,273 $ 2,354,059 (1) Refer to “ Individually Impaired Loans” below for further detail. (2) Not included above is $11.9 million of accrued interest receivable on all loans at June 30, 2021. (3) Not included above is $14.5 million of accrued interest receivable on all loans at December 31, 2020. |
REAL ESTATE SECURITIES (Tables)
REAL ESTATE SECURITIES (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of securities which are classified as available-for-sale | The following is a summary of the Company’s securities at June 30, 2021 and December 31, 2020 ($ in thousands): June 30, 2021 Gross Unrealized Weighted Average Asset Type Outstanding Amortized Cost Basis Gains Losses Carrying # of Rating (1) Coupon % Yield % Remaining CMBS(2) $ 677,025 $ 677,901 $ 1,726 $ (5,069) $ 674,558 72 AAA 1.68 % 1.65 % 2.07 CMBS interest-only(2)(4) 1,399,645 18,072 748 — 18,820 14 AAA 0.43 % 2.00 % 2.01 GNMA interest-only(4)(6) 63,305 635 145 (81) 699 14 AA+ 0.40 % 4.79 % 3.39 Agency securities(2) 568 572 7 — 579 2 AA+ 2.50 % 1.60 % 0.97 GNMA permanent securities(2) 24,040 24,171 376 — 24,547 3 AA+ 4.12 % 3.54 % 1.18 Total debt securities $ 2,164,583 $ 721,351 $ 3,002 $ (5,150) $ 719,203 105 0.86 % 1.72 % 2.04 Provision for current expected credit losses N/A — — (20) (20) Total real estate securities $ 2,164,583 $ 721,351 $ 3,002 $ (5,170) $ 719,183 105 December 31, 2020 Gross Unrealized Weighted Average Asset Type Outstanding Amortized Gains Losses Carrying # of Rating (1) Coupon % Yield % Remaining CMBS(2) $ 1,015,520 $ 1,015,282 $ 1,382 $ (13,363) $ 1,003,301 (3) 90 AAA 1.56 % 1.56 % 2.01 CMBS interest-only(2)(4) 1,498,181 21,567 672 (26) 22,213 (5) 15 AAA 0.44 % 3.53 % 2.19 GNMA interest-only(4)(6) 75,350 868 232 (100) 1,000 11 AA+ 0.43 % 5.06 % 3.59 Agency securities(2) 586 593 12 — 605 2 AA+ 2.55 % 1.64 % 1.26 GNMA permanent securities(2) 30,254 30,340 859 — 31,199 5 AA+ 3.87 % 3.49 % 1.98 Total debt securities $ 2,619,891 $ 1,068,650 $ 3,157 $ (13,489) $ 1,058,318 123 0.91 % 1.66 % 2.01 Provision for current expected credit losses N/A — — (20) (20) Total real estate securities $ 2,619,891 $ 1,068,650 $ 3,157 $ (13,509) $ 1,058,298 123 (1) Represents the weighted average of the ratings of all securities in each asset type, expressed as an S&P equivalent rating. For each security rated by multiple rating agencies, the highest rating is used. Ratings provided were determined by third-party rating agencies as of a particular date, may not be current and are subject to change (including the assignment of a “negative outlook” or “credit watch”) at any time. (2) CMBS, CMBS interest-only securities, Agency securities, GNMA permanent securities and corporate bonds are classified as available-for-sale and reported at fair value with changes in fair value recorded in the current period in other comprehensive income. (3) As of June 30, 2021 and December 31, 2020, respectively, includes $11.0 million and $11.1 million of restricted securities which are designated as risk retention securities under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (the “Dodd-Frank Act”) and are therefore subject to transfer restrictions over the term of the securitization trust and are classified as held-to-maturity and reported at amortized cost. (4) The amounts presented represent the principal amount of the mortgage loans outstanding in the pool in which the interest-only securities participate. (5) As of June 30, 2021 and December 31, 2020, respectively, includes $0.6 million and $0.7 million of restricted securities which are designated as risk retention securities under the Dodd-Frank Act and are therefore subject to transfer restrictions over the term of the securitization trust and are classified as held-to-maturity and reported at amortized cost. (6) Agency interest-only securities are recorded at fair value with changes in fair value recorded in current period earnings. The Company’s Agency interest-only securities are considered to be hybrid financial instruments that contain embedded derivatives. As a result, the Company has elected to account for them as hybrid instruments in their entirety at fair value with changes in fair value recognized in unrealized gain (loss) on Agency interest-only securities in the consolidated statements of income in accordance with ASC 815. |
Schedule of fair value of the Company's securities by remaining maturity based upon expected cash flows | The following is a breakdown of the carrying value of the Company’s debt securities by remaining maturity based upon expected cash flows at June 30, 2021 and December 31, 2020 ($ in thousands): June 30, 2021 Asset Type Within 1 year 1-5 years 5-10 years After 10 years Total CMBS $ 296,214 $ 315,343 $ 54,231 $ 8,770 $ 674,558 CMBS interest-only 947 17,873 — — 18,820 GNMA interest-only 67 433 199 — 699 Agency securities 508 71 — — 579 GNMA permanent securities — 24,547 — — 24,547 Provision for current expected credit losses — — — — (20) Total debt securities $ 297,736 $ 358,267 $ 54,430 $ 8,770 $ 719,183 December 31, 2020 Asset Type Within 1 year 1-5 years 5-10 years After 10 years Total CMBS $ 230,977 $ 748,953 $ 23,371 $ — $ 1,003,301 CMBS interest-only 1,572 20,641 — — 22,213 GNMA interest-only 65 647 288 — 1,000 Agency securities — 605 — — 605 GNMA permanent securities 67 31,132 — — 31,199 Provision for current expected credit losses — — — — (20) Total debt securities $ 232,681 $ 801,978 $ 23,659 $ — $ 1,058,298 |
REAL ESTATE AND RELATED LEASE_2
REAL ESTATE AND RELATED LEASE INTANGIBLES, NET (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Real Estate [Abstract] | |
Schedule of real estate properties by category | The following tables present additional detail related to our real estate portfolio, net, including foreclosed properties ($ in thousands): June 30, 2021 December 31, 2020 Land $ 213,477 $ 220,511 Building 820,417 838,542 In-place leases and other intangibles 153,989 157,176 Undepreciated real estate and related lease intangibles 1,187,883 1,216,229 Less: Accumulated depreciation and amortization (239,435) (230,925) Real estate and related lease intangibles, net $ 948,448 $ 985,304 Below market lease intangibles, net (other liabilities) $ (35,807) $ (36,952) |
Schedule of depreciation and amortization expense recorded | The following table presents depreciation and amortization expense on real estate recorded by the Company ($ in thousands): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Depreciation expense(1) $ 7,825 $ 8,110 $ 15,815 $ 16,383 Amortization expense 1,639 1,681 3,185 3,392 Total real estate depreciation and amortization expense $ 9,464 $ 9,791 $ 19,000 $ 19,775 |
Schedule of lease intangible assets | The Company’s intangible assets are comprised of in-place leases, above market leases and other intangibles. The following tables present additional detail related to our intangible assets ($ in thousands): June 30, 2021 December 31, 2020 Gross intangible assets(1) $ 153,989 $ 157,176 Accumulated amortization 67,996 66,014 Net intangible assets $ 85,993 $ 91,162 (1) Includes $4.0 million and $4.2 million of unamortized above market lease intangibles which are included in real estate and related lease intangibles, net on the consolidated balance sheets as of June 30, 2021 and December 31, 2020, respectively. The following table presents increases/reductions in operating lease income related to the amortization of above or below market leases recorded by the Company ($ in thousands): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Reduction in operating lease income for amortization of above market lease intangibles acquired $ (92) $ (92) $ (183) $ (183) Increase in operating lease income for amortization of below market lease intangibles acquired 576 619 1,146 1,371 |
Schedule of expected amortization expense related to the acquired in-place lease intangibles, for property owned | The following table presents expected adjustment to operating lease income and expected amortization expense during the next five years and thereafter related to the above and below market leases and acquired in-place lease and other intangibles for property owned as of June 30, 2021 ($ in thousands): Period Ending December 31, Adjustment to Operating Lease Income Amortization Expense 2021 (last 6 months) $ 536 $ 2,620 2022 1,071 5,241 2023 1,071 5,241 2024 1,071 5,241 2025 1,071 5,241 Thereafter 27,000 58,423 Total $ 31,820 $ 82,007 |
Schedule of contractual future minimum rent under leases | The following is a schedule of non-cancellable, contractual, future minimum rent under leases (excluding property operating expenses paid directly by tenant under net leases) at June 30, 2021 ($ in thousands): Period Ending December 31, Amount 2021 (last 6 months) $ 46,824 2022 70,156 2023 62,414 2024 61,450 2025 60,173 Thereafter 448,700 Total $ 749,717 |
Schedule of real estate properties acquired | During the six months ended June 30, 2021, the Company acquired the following properties ($ in thousands): Acquisition Date Type Primary Location(s) Purchase Price/Fair Value on the Date of Foreclosure Ownership Interest (1) Real estate acquired via foreclosure February 2021 Hotel Miami, FL $ 43,750 100.0% Total real estate acquired via foreclosure 43,750 Total real estate acquisitions $ 43,750 (1) Properties were consolidated as of acquisition date. During the six months ended June 30, 2020, the Company acquired the following properties ($ in thousands): Acquisition Date Type Primary Location(s) Purchase Price/Fair Value on the Date of Foreclosure Ownership Interest (1) Aggregate purchases of net leased real estate $ 6,239 100.0% Real estate acquired via foreclosure March 2020 Diversified Los Angeles, CA 21,535 100.0% June 2020 Diversified Winston Salem, NC 3,900 100.0% Total real estate acquired via foreclosure 25,435 Total real estate acquisitions $ 31,674 (1) Properties were consolidated as of acquisition date. |
Schedule of properties sold | The Company sold the following properties during the six months ended June 30, 2021 ($ in thousands): Sales Date Type Primary Location(s) Net Sales Proceeds Net Book Value Realized Gain/(Loss) Properties Units Sold Units Remaining February 2021 Hotel Miami, FL $ 43,750 $ 43,750 $ — 1 — — June 2021 Retail North Dartmouth, MA 38,732 19,343 19,389 1 — — Totals $ 82,482 $ 63,093 $ 19,389 The Company sold the following properties during the six months ended June 30, 2020 ($ in thousands): Sales Date Type Primary Location(s) Net Sales Proceeds Net Book Value Realized Gain/(Loss) Properties Units Sold Units Remaining Various Condominium Miami, FL $ 931 $ 924 $ 7 — 3 3 March 2020 Diversified Richmond, VA 22,526 14,829 7,697 7 — — March 2020 Diversified Richmond, VA 6,933 4,109 2,824 1 — — Totals $ 30,390 $ 19,862 $ 10,528 (1) Realized gain (loss) on the sale of real estate, net on the consolidated statements of income also includes $0.1 million of realized loss on the disposal of fixed assets for the six months ended June 30, 2020. |
INVESTMENT IN AND ADVANCES TO_2
INVESTMENT IN AND ADVANCES TO UNCONSOLIDATED JOINT VENTURES (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Summary of the Company's investments in unconsolidated joint ventures, which the entity accounts for using the equity method | The following is a summary of the Company’s investments in and advances to unconsolidated joint ventures, which we account for using the equity method, as of June 30, 2021 and December 31, 2020 ($ in thousands): Entity June 30, 2021 December 31, 2020 Grace Lake JV, LLC $ 4,645 $ 4,023 24 Second Avenue Holdings LLC 33,174 42,230 Investment in unconsolidated joint ventures $ 37,819 $ 46,253 |
Summary of the Company's allocated earnings based on its ownership interests from investment in unconsolidated joint ventures | The following is a summary of the Company’s allocated earnings (losses) based on its ownership interests from investment in unconsolidated joint ventures for the three and six months ended June 30, 2021 and 2020 ($ in thousands): Three Months Ended June 30, Six Months Ended June 30, Entity 2021 2020 2021 2020 Grace Lake JV, LLC $ 325 $ 263 $ 622 $ 449 24 Second Avenue Holdings LLC (88) 208 51 463 Earnings (loss) from investment in unconsolidated joint ventures $ 237 $ 471 $ 673 $ 912 |
Summary of the combined results from operations of the unconsolidated joint ventures for the period in which the Company had investment interests | The following is a summary of the combined financial position of the unconsolidated joint ventures in which the Company had investment interests as of June 30, 2021 and December 31, 2020 ($ in thousands): June 30, 2021 December 31, 2020 Total assets $ 117,970 $ 114,916 Total liabilities 69,848 75,775 Partners’/members’ capital $ 48,122 $ 39,141 The following is a summary of the combined results from operations of the unconsolidated joint ventures for the period in which the Company had investment interests during the three and six months ended June 30, 2021 and 2020 ($ in thousands): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Total revenues $ 4,543 $ 4,294 $ 9,057 $ 8,770 Total expenses 3,242 3,450 6,565 7,424 Net income (loss) $ 1,301 $ 844 $ 2,492 $ 1,346 |
DEBT OBLIGATIONS, NET (Tables)
DEBT OBLIGATIONS, NET (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of debt obligations | The details of the Company’s debt obligations at June 30, 2021 and December 31, 2020 are as follows ($ in thousands): June 30, 2021 Debt Obligations Committed Financing Debt Obligations Outstanding Committed but Unfunded Interest Rate at June 30, 2021(1) Current Term Maturity Remaining Extension Options Eligible Collateral Carrying Amount of Collateral Fair Value of Collateral Committed Loan Repurchase Facility(2) $ 500,000 $ 109,300 $ 390,700 1.82% — 2.07% 12/19/2022 (3) (4) $ 178,903 $ 178,903 Committed Loan Repurchase Facility 100,000 — 100,000 —% — —% 2/26/2022 (5) (6) — — Committed Loan Repurchase Facility 300,000 82,873 217,127 1.82% — 2.82% 12/16/2021 (7) (8) 142,515 142,515 Committed Loan Repurchase Facility 100,000 — 100,000 —% — —% 4/30/2024 (9) (4) — — Committed Loan Repurchase Facility 100,000 26,183 73,817 2.2% — 2.2% 12/31/2022 (3) (4) 45,053 45,053 Committed Loan Repurchase Facility 100,000 — 100,000 —% — —% 10/24/2021 (10) (11) — — Total Committed Loan Repurchase Facilities 1,200,000 218,356 981,644 366,471 366,471 Committed Securities Repurchase Facility(2) 790,700 62,914 727,786 0.63% — 1.03% 5/27/2023 N/A (12) 75,064 75,064 Uncommitted Securities Repurchase Facility N/A (13) 244,430 N/A (13) 0.55% — 2.14% 7/2021-11/2021 N/A (12) 279,661 279,661 (14) Total Repurchase Facilities 1,600,000 525,700 1,318,730 721,196 721,196 Revolving Credit Facility 266,430 — 266,430 —% — —% 2/11/2022 (15) N/A (16) N/A (16) N/A (16) Mortgage Loan Financing 745,971 745,971 — 3.75% — 6.16% 2021 - 2030(17) N/A (18) 874,924 1,106,518 (19) Secured Financing Facility 161,369 152,142 (20) — 10.75% — 10.75% 5/6/2023 N/A (21) 246,288 246,512 CLO Debt 169,783 168,843 (22) — 5.5% — 5.5% 5/16/2024 N/A (4) 296,992 296,992 Borrowings from the FHLB 288,000 288,000 — 0.36% — 2.74% 2021 - 2024 N/A (23) 319,565 319,565 (24) Senior Unsecured Notes 2,115,644 2,095,059 (25) — 4.25% — 5.25% 2022 - 2029 N/A N/A (26) N/A (26) N/A (26) Total Debt Obligations, Net $ 5,347,197 $ 3,975,715 $ 1,585,160 $ 2,458,965 $ 2,690,783 (1) June 2021 LIBOR rates are used to calculate interest rates for floating rate debt. (2) The combined committed amounts for the loan repurchase facility and the securities repurchase facility total $900.0 million, with maximum capacity on the loan repurchase facility of $500.0 million, and maximum capacity on the securities repurchase facility of $900.0 million less outstanding commitments on the loan repurchase facility. (3) Two 12-month extension periods at Company’s option. No new advances are permitted after the initial maturity date. (4) First mortgage commercial real estate loans and senior and pari passu interests therein. It does not include the real estate collateralizing such loans. (5) Two additional 12-month periods at Company’s option. (6) First mortgage commercial real estate loans. It does not include the real estate collateralizing such loans. (7) Two additional 364-day periods at Company’s option. (8) First mortgage and mezzanine commercial real estate loans and senior and pari passu interests therein. It does not include the real estate collateralizing such loans. (9) One additional 12-month extension period and two additional 6-month extension periods at Company’s option. (10) The Company may extend periodically with lender’s consent. At no time can the maturity of the facility exceed 364 days from the date of determination. (11) First mortgage, junior and mezzanine commercial real estate loans, and certain senior and/or pari passu interests therein. (12) Commercial real estate securities. It does not include the first mortgage commercial real estate loans collateralizing such securities. (13) Represents uncommitted securities repurchase facilities for which there is no committed amount subject to future advances. (14) Includes $2.1 million of restricted securities under the risk retention rules of the Dodd-Frank Act. These securities are accounted for as held-to-maturity and recorded at amortized cost basis. (15) Three additional 12-month periods at Company’s option. (16) The obligations under the revolving credit facility (“Revolving Credit Facility”) are guaranteed by the Company and certain of its subsidiaries and secured by equity pledges in certain Company subsidiaries. (17) Anticipated repayment dates. (18) Certain of our real estate investments serve as collateral for our mortgage loan financing. (19) Using undepreciated carrying value of commercial real estate to approximate fair value. (20) Presented net of unamortized debt issuance costs of $4.5 million and an unamortized discount of $4.7 million related to the Purchase Right (described in detail under Secured Financing Facility below) at June 30, 2021. (21) First mortgage commercial real estate loans. Substitution of collateral and conversion of loan collateral to mortgage collateral are permitted with Lender’s approval. Pending substitution of acceptable collateral, $19.8 million of the obligations are unsecured and guaranteed by the Company. (22) Presented net of unamortized debt issuance costs of $0.9 million at June 30, 2021. (23) Investment grade commercial real estate securities and cash. It does not include the first mortgage commercial real estate loans collateralizing such securities. (24) Includes $8.7 million of restricted securities under the risk retention rules of the Dodd-Frank Act. These securities are accounted for as held-to-maturity and recorded at amortized cost basis. (25) Presented net of unamortized debt issuance costs of $20.6 million at June 30, 2021. (26) The obligations under the senior unsecured notes are guaranteed by the Company and certain of its subsidiaries. December 31, 2020 Debt Obligations Committed Financing Debt Obligations Outstanding Committed but Unfunded Interest Rate at December 31, 2020(1) Current Term Maturity Remaining Extension Options Eligible Collateral Carrying Amount of Collateral Fair Value of Collateral Committed Loan Repurchase Facility(2) $ 500,000 $ 112,004 $ 387,996 1.91% — 2.16% 12/19/2022 (3) (4) $ 180,416 $ 180,416 Committed Loan Repurchase Facility 250,000 — 250,000 —% — —% 2/26/2021 (5) (6) — — Committed Loan Repurchase Facility 300,000 90,197 209,803 1.91% — 2.91% 12/16/2021 (7) (8) 154,850 154,850 Committed Loan Repurchase Facility 300,000 11,312 288,688 2.19% — 2.19% 11/6/2022 (9) (4) 28,285 28,285 Committed Loan Repurchase Facility 100,000 26,183 73,817 2.28% — 2.28% 12/31/2022 (10) (4) 45,235 45,235 Committed Loan Repurchase Facility 100,000 15,672 84,328 2.66% — 3.50% 10/24/2021 (11) (12) 30,600 30,600 Total Committed Loan Repurchase Facilities 1,550,000 255,368 1,294,632 439,386 439,386 Committed Securities Repurchase Facility(2) 787,996 149,633 638,363 0.86% — 1.11% 12/23/2021 N/A (13) 226,008 226,008 Uncommitted Securities Repurchase Facility N/A (14) 415,836 N/A (14) 0.73% — 2.84% 1/2021-3/2021 N/A (13) 502,476 502,476 (15) Total Repurchase Facilities 1,950,000 820,837 1,544,999 1,167,870 1,167,870 Revolving Credit Facility 266,430 266,430 — 3.15% 2/11/2022 (16) N/A (17) N/A (17) N/A (17) Mortgage Loan Financing 766,064 766,064 — 3.75% — 6.16% 2021 - 2030(18) N/A (19) 909,406 1,133,703 (20) Secured Financing Facility 206,350 192,646 (21) — 10.75% — 10.75% 5/6/2023 N/A (22) 327,769 328,097 CLO Debt 279,156 276,516 (23) — 5.50% — 5.50% 5/16/2024 N/A (4) 362,600 362,600 Borrowings from the FHLB 1,500,000 288,000 1,212,000 0.41% — 2.74% 2021 - 2024 N/A (24) 388,400 392,212 (25) Senior Unsecured Notes 1,612,299 1,599,371 (26) — 4.25% — 5.88% 2021 - 2027 N/A N/A (27) N/A (27) N/A (27) Total Debt Obligations $ 6,580,299 $ 4,209,864 $ 2,756,999 $ 3,156,045 $ 3,384,482 (1) December 31, 2020 LIBOR rates are used to calculate interest rates for floating rate debt. (2) The combined committed amounts for the loan repurchase facility and the securities repurchase facility total $900.0 million, with maximum capacity on the loan repurchase facility of $500.0 million, and maximum capacity on the securities repurchase facility of $900.0 million less outstanding commitments on the loan repurchase facility. (3) Two additional 12-month periods at Company’s option. No new advances are permitted after the initial maturity date. (4) First mortgage commercial real estate loans and senior and pari passu interests therein. It does not include the real estate collateralizing such loans. (5) Three additional 12-month periods at Company’s option. (6) First mortgage commercial real estate loans. It does not include the real estate collateralizing such loans. (7) Two additional 364-day periods at Company’s option. (8) First mortgage and mezzanine commercial real estate loans and senior and pari passu interests therein. It does not include the real estate collateralizing such loans. (9) One additional 12-month extension period and two additional 6-month extension periods at Company’s option. (10) Two additional 12-month extension periods at Company’s option. No new advances are permitted after the initial maturity date. (11) The Company may extend periodically with lender’s consent. At no time can the maturity of the facility exceed 364 days from the date of determination. (12) First mortgage, junior and mezzanine commercial real estate loans, and certain senior and/or pari passu interests therein. (13) Commercial real estate securities. It does not include the first mortgage commercial real estate loans collateralizing such securities. (14) Represents uncommitted securities repurchase facilities for which there is no committed amount subject to future advances. (15) Includes $2.1 million of restricted securities under the risk retention rules of the Dodd-Frank Act. These securities are accounted for as held-to-maturity and recorded at amortized cost basis. (16) Three additional 12-month periods at Company’s option. (17) The obligations under the Revolving Credit Facility are guaranteed by the Company and certain of its subsidiaries and secured by equity pledges in certain Company subsidiaries. (18) Anticipated repayment dates. (19) Certain of our real estate investments serve as collateral for our mortgage loan financing. (20) Using undepreciated carrying value of commercial real estate to approximate fair value. (21) Presented net of unamortized debt issuance costs of $7.2 million and an unamortized discount of $6.6 million related to the Purchase Right (described in detail under Secured Financing Facility below) at December 31, 2020. (22) First mortgage commercial real estate loans. Substitution of collateral and conversion of loan collateral to mortgage collateral are permitted with Lender’s approval. (23) Presented net of unamortized debt issuance costs of $2.6 million at December 31, 2020. (24) First mortgage commercial real estate loans and investment grade commercial real estate securities. It does not include the real estate collateralizing such loans and securities. (25) Includes $9.4 million of restricted securities under the risk retention rules of the Dodd-Frank Act. These securities are accounted for as held-to-maturity and recorded at amortized cost basis. (26) Presented net of unamortized debt issuance costs of $12.9 million at December 31, 2020. (27) The obligations under the senior unsecured notes are guaranteed by the Company and certain of its subsidiaries. Combined Maturity of Debt Obligations The following schedule reflects the Company’s contractual payments under all borrowings by maturity ($ in thousands): Period ending December 31, Borrowings by 2021 (last 6 months) $ 631,068 2022 925,858 2023 146,112 2024 296,315 2025 468,876 Thereafter 1,534,678 Subtotal 4,002,907 Debt issuance costs included in senior unsecured notes (20,585) Debt issuance costs included in secured financing facility (4,535) Discount on secured financing facility related to Purchase Right (4,692) Debt issuance costs included in CLO debt (941) Debt issuance costs included in mortgage loan financing (329) Premiums included in mortgage loan financing(2) 3,890 Total $ 3,975,715 (1) Contractual payments under current maturities, some of which are subject to extensions. The maturities listed above for 2021 relate to debt obligations that are subject to existing Company controlled extension options for one or more additional one-year periods or could be refinanced by other existing facilities as of June 30, 2021. |
DERIVATIVE INSTRUMENTS (Tables)
DERIVATIVE INSTRUMENTS (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of breakdown of the derivatives outstanding | The following is a breakdown of the derivatives outstanding as of June 30, 2021 and December 31, 2020 ($ in thousands): June 30, 2021 Fair Value Remaining Contract Type Notional Asset(1) Liability(1) Caps 1 Month LIBOR $ 69,571 $ — $ — 0.36 Futures 5-year Swap 25,300 — 70 0.25 10-year Swap 107,700 — 298 0.25 Total futures 133,000 — 368 Total derivatives $ 202,571 $ — $ 368 (1) Shown as derivative instruments, at fair value, in the accompanying consolidated balance sheets. December 31, 2020 Fair Value Remaining Contract Type Notional Asset(1) Liability(1) Caps 1Month LIBOR $ 69,571 $ — $ — 0.35 Futures 5-year Swap 23,800 108 — 0.25 10-year Swap 41,800 191 — 0.25 Total futures 65,600 299 — Total derivatives $ 135,171 $ 299 $ — (1) Shown as derivative instruments, at fair value, in the accompanying consolidated balance sheets. |
Schedule of net realized gains/(losses) and unrealized appreciation/(depreciation) on derivatives | The following table indicates the net realized gains (losses) and unrealized appreciation (depreciation) on derivatives, by primary underlying risk exposure, as included in net result from derivatives transactions in the consolidated statements of operations for the three and six months ended June 30, 2021 and 2020 ($ in thousands): Three Months Ended June 30, 2021 Six Months Ended June 30, 2021 Contract Type Unrealized Realized Net Result Unrealized Realized Net Result Futures $ (669) $ (3,175) $ (3,844) $ (667) $ 1,594 $ 927 Total $ (669) $ (3,175) $ (3,844) $ (667) $ 1,594 $ 927 Three Months Ended June 30, 2020 Six Months Ended June 30, 2020 Contract Type Unrealized Realized Net Result Unrealized Realized Net Result Futures $ (570) $ (326) $ (896) $ (298) $ (16,272) $ (16,570) Credit Derivatives — 83 83 111 211 322 Total $ (570) $ (243) $ (813) $ (187) $ (16,061) $ (16,248) |
OFFSETTING ASSETS AND LIABILI_2
OFFSETTING ASSETS AND LIABILITIES (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Offsetting [Abstract] | |
Schedule of offsetting of financial assets | The following table represents offsetting of financial assets and derivative assets as of December 31, 2020 ($ in thousands): Description Gross amounts of Gross amounts Net amounts of Gross amounts not offset in the Net amount Financial Cash collateral Derivatives $ 299 $ — $ 299 $ — $ — $ 299 Total $ 299 $ — $ 299 $ — $ — $ 299 (1) Included in restricted cash on consolidated balance sheets. |
Schedule of offsetting of financial liabilities | The following table represents offsetting of financial liabilities and derivative liabilities as of June 30, 2021 ($ in thousands): Description Gross amounts of Gross amounts Net amounts of Gross amounts not offset in the Net amount Financial Cash collateral Derivatives $ 368 $ — $ 368 $ — $ 368 $ — Repurchase agreements $ 525,700 $ — $ 525,700 $ 525,700 $ — $ — Total $ 526,068 $ — $ 526,068 $ 525,700 $ 368 $ — (1) Included in restricted cash on consolidated balance sheets. The following table represents offsetting of financial liabilities and derivative liabilities as of December 31, 2020 ($ in thousands): Description Gross amounts of Gross amounts Net amounts of Gross amounts not offset in the Net amount Financial Cash collateral Repurchase agreements $ 820,837 $ — $ 820,837 $ 820,837 $ — $ — Total $ 820,837 $ — $ 820,837 $ 820,837 $ — $ — (1) Included in restricted cash on consolidated balance sheets. |
CONSOLIDATED VARIABLE INTERES_2
CONSOLIDATED VARIABLE INTEREST ENTITIES (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Variable Interest Entities | The Company consolidates one collateralized loan obligation (“CLO”) VIE with the following balance sheets ($ in thousands): June 30, 2021 December 31, 2020 Notes 3 & 7 Restricted cash $ — $ 3,925 Mortgage loan receivables held for investment, net, at amortized cost 296,992 362,600 Accrued interest receivable 1,050 1,382 Other assets 22 69,649 Total assets $ 298,064 $ 437,556 Debt obligations, net $ 168,843 $ 276,516 Accrued expenses 389 682 Total liabilities 169,232 277,198 Net equity in VIEs (eliminated in consolidation) 128,832 160,358 Total equity 128,832 160,358 Total liabilities and equity $ 298,064 $ 437,556 |
EQUITY STRUCTURE AND ACCOUNTS (
EQUITY STRUCTURE AND ACCOUNTS (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Equity [Abstract] | |
Common stock repurchase activity | The following table is a summary of the Company’s repurchase activity of its Class A common stock during the six months ended June 30, 2021 and 2020 ($ in thousands): Shares Amount(1) Authorizations remaining as of December 31, 2020 $ 38,102 Additional authorizations — Repurchases paid 120,000 (1,312) Repurchases unsettled — Authorizations remaining as of June 30, 2021 $ 36,790 (1) Amount excludes commissions paid associated with share repurchases. Shares Amount(1) Authorizations remaining as of December 31, 2019 $ 41,132 Additional authorizations — Repurchases paid 210,151 (1,682) Repurchases unsettled — Authorizations remaining as of June 30, 2020 $ 39,450 (1) Amount excludes commissions paid associated with share repurchases. |
Schedule of dividends declared and paid | The following table presents dividends declared (on a per share basis) of Class A common stock for the six months ended June 30, 2021 and 2020: Declaration Date Dividend per Share March 15, 2021 $ 0.20 June 15, 2021 $ 0.20 Total $ 0.40 February 27, 2020 $ 0.34 May 28, 2020 $ 0.20 Total $ 0.54 |
Schedule of accumulated other comprehensive Income | The following table presents changes in accumulated other comprehensive income related to the cumulative difference between the fair market value and the amortized cost basis of securities classified as available for sale for the six months ended June 30, 2021 and 2020 ($ in thousands): Accumulated Other Comprehensive Income (Loss) Accumulated Other Comprehensive Income (Loss) of Noncontrolling Interests Total Accumulated Other Comprehensive Income (Loss) December 31, 2020 $ (10,463) $ (2) $ (10,465) Other comprehensive income (loss) 8,252 — 8,252 June 30, 2021 $ (2,211) $ (2) $ (2,213) Accumulated Other Comprehensive Income (Loss) Accumulated Other Comprehensive Income (Loss) of Noncontrolling Interests Total Accumulated Other Comprehensive Income (Loss) December 31, 2019 $ 4,218 $ 477 $ 4,695 Other comprehensive income (loss) (46,530) (5,354) (51,884) Exchange of noncontrolling interest for common stock (4,915) 4,915 — Rebalancing of ownership percentage between Company and Operating Partnership 2,147 (2,147) — June 30, 2020 $ (45,080) $ (2,109) $ (47,189) |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of the Company's net income and weighted average shares outstanding | The Company’s net income (loss) and weighted average shares outstanding for the three and six months ended June 30, 2021 and 2020 consist of the following: Three Months Ended June 30, Six Months Ended June 30, ($ in thousands except share amounts) 2021 2020 2021 2020 Basic Net income (loss) available for Class A common shareholders $ 10,294 $ (4,189) $ 10,489 $ (19,918) Diluted Net income (loss) available for Class A common shareholders $ 10,294 $ (4,189) $ 10,489 $ (19,918) Weighted average shares outstanding Basic 124,048,999 106,809,987 124,012,683 106,569,892 Diluted 124,480,487 106,809,987 124,353,202 106,569,892 |
Schedule of calculation of basic and diluted net income per share amounts | The calculation of basic and diluted net income (loss) per share amounts for the three and six months ended June 30, 2021 and 2020 consist of the following: Three Months Ended June 30, Six Months Ended June 30, (In thousands except share and per share amounts) 2021 2020 2021(1) 2020(1) Basic Net Income (Loss) Per Share of Class A Common Stock Numerator : Net income (loss) attributable to Class A common shareholders $ 10,294 $ (4,189) $ 10,489 $ (19,918) Denominator : Weighted average number of shares of Class A common stock outstanding 124,048,999 106,809,987 124,012,683 106,569,892 Basic net income (loss) per share of Class A common stock $ 0.08 $ (0.04) $ 0.08 $ (0.19) Diluted Net Income (Loss) Per Share of Class A Common Stock Numerator: Net income (loss) attributable to Class A common shareholders $ 10,294 $ (4,189) $ 10,489 $ (19,918) Diluted net income (loss) attributable to Class A common shareholders 10,294 (4,189) 10,489 (19,918) Denominator: Basic weighted average number of shares of Class A common stock outstanding 124,048,999 106,809,987 124,012,683 106,569,892 Add - dilutive effect of: Incremental shares of unvested Class A restricted stock(2) 431,488 — 340,519 — Incremental shares of unvested stock options — — — — Diluted weighted average number of shares of Class A common stock outstanding 124,480,487 106,809,987 124,353,202 106,569,892 Diluted net income (loss) per share of Class A common stock $ 0.08 $ (0.04) $ 0.08 $ (0.19) (1) For the three and six months ended June 30, 2020, shares issuable relating to converted Class B common shareholders are excluded from the calculation of diluted EPS as the inclusion of such potential common shares in the calculation would be anti-dilutive. (2) The Company is using the treasury stock method. |
STOCK BASED AND OTHER COMPENS_2
STOCK BASED AND OTHER COMPENSATION PLANS (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock based compensation plans summary | The following table summarizes the impact on the consolidated statement of operations of the various stock based and other compensation plans ($ in thousands): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Stock Based Compensation Expense $ 3,524 $ 2,712 $ 8,801 $ 16,738 Phantom Equity Investment Plan — 561 22 (1,577) Stock Options Exercised — — — 270 Bonus Expense 1,850 — 2,300 (30) Total $ 5,374 $ 3,273 $ 11,123 $ 15,401 |
Summary of the grants | A summary of the grants is presented below: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Number Weighted Number Weighted Number Weighted Number Weighted Grants - Class A Common Stock — — — — 747,713 $ 9.81 1,466,337 $ 18.72 |
Schedule of nonvested shares activity | The table below presents the number of unvested shares and outstanding stock options at June 30, 2021 and changes during 2021 of the Class A common stock and stock options of Ladder Capital Corp granted under the 2014 Omnibus Incentive Plan: Restricted Stock Stock Options Nonvested/Outstanding at December 31, 2020 2,800,824 681,102 Granted 747,713 — Exercised — — Vested (982,998) — Forfeited (327,143) — Expired — — Nonvested/Outstanding at June 30, 2021 2,238,396 681,102 Exercisable at June 30, 2021 681,102 |
FAIR VALUE OF FINANCIAL INSTR_2
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Summary of fair value | The carrying values and estimated fair values of the Company’s financial instruments, which are both reported at fair value on a recurring basis (as indicated) or amortized cost/par, at June 30, 2021 and December 31, 2020 are as follows ($ in thousands): June 30, 2021 Weighted Average Outstanding Amortized Cost Basis/Purchase Price Fair Value Fair Value Method Yield Remaining Assets: CMBS(1) $ 677,025 $ 677,901 $ 674,558 Internal model, third-party inputs 1.65 % 2.07 CMBS interest-only(1) 1,399,645 (2) 18,072 18,820 Internal model, third-party inputs 2.00 % 2.01 GNMA interest-only(3) 63,305 (2) 635 699 Internal model, third-party inputs 4.79 % 3.39 Agency securities(1) 568 572 580 Internal model, third-party inputs 1.60 % 0.97 GNMA permanent securities(1) 24,040 24,171 24,547 Internal model, third-party inputs 3.54 % 1.18 Provision for current expected credit reserves N/A (20) (20) (5) N/A N/A Mortgage loan receivables held for investment, net, at amortized cost: Mortgage loan receivables held for investment, net, at amortized cost 2,548,013 2,531,048 2,424,602 Discounted Cash Flow(4) 5.80 % 1.81 Allowance for current expected credit reserves N/A (35,891) (35,891) (5) N/A N/A Mortgage loan receivables held for sale 59,198 59,182 62,295 Internal model, third-party inputs(6) 4.25 % 9.81 FHLB stock(7) 12,960 12,960 12,960 (7) 3.00 % N/A Liabilities: Repurchase agreements - short-term 390,217 390,217 390,217 Discounted Cash Flow(9) 0.98 % 0.23 Repurchase agreements - long-term 135,483 135,483 135,483 Discounted Cash Flow(10) 1.89 % 1.48 Mortgage loan financing 742,410 745,971 764,159 Discounted Cash Flow(10) 4.84 % 3.7 Secured financing facility 152,143 152,143 152,143 Discounted Cash Flow(9) 10.75 % 1.85 CLO debt 168,843 168,843 168,843 Discounted Cash Flow(10) 5.50 % 2.88 Borrowings from the FHLB 288,000 288,000 288,712 Discounted Cash Flow 1.07 % 2.26 Senior unsecured notes 2,115,644 2,095,059 2,123,832 Internal model, third-party inputs 4.81 % 4.22 Nonhedge derivatives(1)(8) 202,571 N/A 368 Counterparty quotations N/A 0.25 (1) Measured at fair value on a recurring basis with the net unrealized gains or losses recorded as a component of other comprehensive income (loss) in equity. (2) Represents notional outstanding balance of underlying collateral. (3) Measured at fair value on a recurring basis with the net unrealized gains or losses recorded in current period earnings. (4) Fair value for floating rate mortgage loan receivables, held for investment is estimated to approximate the outstanding face amount given the short interest rate reset risk (30 days) and no significant change in credit risk. Fair value for fixed rate mortgage loan receivables, held for investment is measured using a discounted cash flow model. (5) Fair value is estimated to equal par value. (6) Fair value for mortgage loan receivables, held for sale is measured using a hypothetical securitization model utilizing market data from recent securitization spreads and pricing. (7) Fair value of the FHLB stock approximates outstanding face amount as the Company’s captive insurance subsidiary is restricted from trading the stock and can only put the stock back to the FHLB, at the FHLB’s discretion, at par. (8) The outstanding face amount of the nonhedge derivatives represents the notional amount of the underlying contracts. (9) Fair value for repurchase agreement liabilities - short term borrowings under the Secured Financing Facility and borrowings under the Revolving Credit Facility is estimated to approximate carrying amount primarily due to the short interest rate reset risk (30 days) of the financings and the high credit quality of the assets collateralizing these positions. If the collateral is determined to be impaired, the related financing would be revalued accordingly. There are no impairments on any positions. (10) For repurchase agreements - long term, mortgage loan financing, and CLO debt, the carrying value approximates the fair value discounting the expected cash flows at current market rates. If the collateral is determined to be impaired, the related financing would be revalued accordingly. There are no impairments on any positions. December 31, 2020 Weighted Average Outstanding Amortized Fair Value Fair Value Method Yield Remaining Assets: CMBS(1) $ 1,015,520 $ 1,015,282 $ 1,003,301 Internal model, third-party inputs 1.56 % 2.01 CMBS interest-only(1) 1,498,181 (2) 21,567 22,213 Internal model, third-party inputs 3.53 % 2.19 GNMA interest-only(3) 75,350 (2) 868 1,001 Internal model, third-party inputs 5.06 % 3.59 Agency securities(1) 586 593 605 Internal model, third-party inputs 1.64 % 1.26 GNMA permanent securities(1) 30,254 30,340 31,199 Internal model, third-party inputs 3.49 % 1.98 Provision for current expected credit losses N/A (20) (20) (5) N/A N/A Mortgage loan receivables held for investment, net, at amortized cost: Mortgage loan receivables held for investment, net, at amortized cost 2,365,204 2,354,059 2,328,441 Discounted Cash Flow(4) 6.67 % 1.07 Allowance for current expected credit losses N/A (41,507) (41,507) (5) N/A N/A Mortgage loan receivables held for sale 30,478 30,518 32,082 Internal model, third-party inputs(6) 4.05 % 9.18 FHLB stock(7) 31,000 31,000 31,000 (7) 3.00 % N/A Nonhedge derivatives(1)(8) 65,600 N/A 299 Counterparty quotations N/A 0.25 Liabilities: Repurchase agreements - short-term 708,833 708,833 708,833 Discounted Cash Flow(9) 1.16 % 0.34 Repurchase agreements - long-term 112,004 112,004 112,004 Discounted Cash Flow(10) 9.47 % 2.21 Revolving credit facility 266,430 266,430 266,430 Discounted Cash Flow(9) 3.15 % 0.07 Mortgage loan financing 761,793 766,064 786,405 Discounted Cash Flow(10) 4.84 % 4.04 Secured financing facility 192,646 192,646 192,646 Discounted Cash Flow(9) 10.75 % 2.35 CLO debt 276,516 276,516 276,516 Discounted Cash Flow(10) 5.50 % 3.38 Borrowings from the FHLB 288,000 288,000 289,091 Discounted Cash Flow 1.12 % 2.76 Senior unsecured notes 1,612,299 1,599,371 1,607,930 Internal model, third-party inputs 4.90 % 3.89 (1) Measured at fair value on a recurring basis with the net unrealized gains or losses recorded as a component of other comprehensive income (loss) in equity. (2) Represents notional outstanding balance of underlying collateral. (3) Measured at fair value on a recurring basis with the net unrealized gains or losses recorded in current period earnings. (4) Fair value for floating rate mortgage loan receivables, held for investment is estimated to approximate the outstanding face amount given the short interest rate reset risk (30 days) and no significant change in credit risk. Fair value for fixed rate mortgage loan receivables, held for investment is measured using a discounted cash flow model. (5) Fair value is estimated to equal par value. (6) Fair value for mortgage loan receivables, held for sale is measured using a hypothetical securitization model utilizing market data from recent securitization spreads and pricing. (7) Fair value of the FHLB stock approximates outstanding face amount as the Company’s captive insurance subsidiary is restricted from trading the stock and can only put the stock back to the FHLB, at the FHLB’s discretion, at par. (8) The outstanding face amount of the nonhedge derivatives represents the notional amount of the underlying contracts. (9) Fair value for repurchase agreement liabilities - short term borrowings under the secured financing facility and borrowings under the revolving credit facility is estimated to approximate carrying amount primarily due to the short interest rate reset risk (30 days) of the financings and the high credit quality of the assets collateralizing these positions. If the collateral is determined to be impaired, the related financing would be revalued accordingly. There are no impairments on any positions. (10) For repurchase agreements - long term, mortgage loan financing, and CLO debt the carrying value approximates the fair value discounting the expected cash flows at current market rates. If the collateral is determined to be impaired, the related financing would be revalued accordingly. There are no impairments on any positions. |
Summary of financial assets and liabilities, both reported at fair value on a recurring basis or amortized cost/par | The following table summarizes the Company’s financial assets and liabilities, which are both reported at fair value on a recurring basis (as indicated) or amortized cost/par, at June 30, 2021 and December 31, 2020 ($ in thousands): June 30, 2021 Financial Instruments Reported at Fair Value on Consolidated Statements of Financial Condition Outstanding Face Fair Value Level 1 Level 2 Level 3 Total Assets: CMBS(1) $ 665,558 $ — $ — $ 663,528 $ 663,528 CMBS interest-only(1) 1,389,135 (2) — — 18,215 18,215 GNMA interest-only(3) 63,305 (2) — — 699 699 Agency securities(1) 568 — — 580 580 GNMA permanent securities(1) 24,040 — — 24,547 24,547 $ — $ — $ 707,569 $ 707,569 Liabilities: Nonhedge derivatives(4) 202,571 $ — $ 368 $ — $ 368 Financial Instruments Not Reported at Fair Value on Consolidated Statements of Financial Condition Outstanding Face Fair Value Level 1 Level 2 Level 3 Total Assets: Mortgage loan receivable held for investment, net, at amortized cost: Mortgage loan receivables held for investment, net, at amortized cost $ 2,548,013 $ — $ — $ 2,424,602 $ 2,424,602 Allowance for current expected credit losses N/A — — (35,891) (35,891) Mortgage loan receivable held for sale 59,198 — — 62,295 62,295 CMBS(5) 11,467 — — 11,030 11,030 CMBS interest-only(5) 10,510 — — 605 605 Allowance for current expected credit losses N/A — — (20) (20) FHLB stock 12,960 — — 12,960 12,960 $ — $ — $ 2,475,581 $ 2,475,581 Liabilities: Repurchase agreements - short-term 390,217 $ — $ — $ 390,217 $ 390,217 Repurchase agreements - long-term 135,483 — — 135,483 135,483 Revolving credit facility — — — — — Mortgage loan financing 742,410 — — 764,159 764,159 Secured financing facility 152,143 — — 152,143 152,143 CLO debt 168,843 — — 168,843 168,843 Borrowings from the FHLB 288,000 — — 288,712 288,712 Senior unsecured notes 2,115,644 — — 2,123,832 2,123,832 $ — $ — $ 4,023,389 $ 4,023,389 (1) Measured at fair value on a recurring basis with the net unrealized gains or losses recorded as a component of other comprehensive income (loss) in equity. (2) Represents notional outstanding balance of underlying collateral. (3) Measured at fair value on a recurring basis with the net unrealized gains or losses recorded in current period earnings. (4) Measured at fair value on a recurring basis with the net unrealized gains or losses recorded in current period earnings. The outstanding face amount of the nonhedge derivatives represents the notional amount of the underlying contracts. (5) Restricted securities which are designated as risk retention securities under the Dodd-Frank Act and are therefore subject to transfer restrictions over the term of the securitization trust, which are classified as held-to-maturity and reported at amortized cost. December 31, 2020 Financial Instruments Reported at Fair Value on Consolidated Statements of Financial Condition Outstanding Face Fair Value Level 1 Level 2 Level 3 Total Assets: CMBS(1) $ 1,003,998 $ — $ — $ 992,227 $ 992,227 CMBS interest-only(1) 1,487,616 (2) — — 21,538 21,538 GNMA interest-only(3) 75,350 (2) — — 1,001 1,001 Agency securities(1) 586 — — 605 605 GNMA permanent securities(1) 30,254 — — 31,199 31,199 Equity securities N/A — — — — Nonhedge derivatives(4) 65,600 — 299 — 299 $ — $ 299 $ 1,046,570 $ 1,046,869 Financial Instruments Not Reported at Fair Value on Consolidated Statements of Financial Condition Outstanding Face Fair Value Level 1 Level 2 Level 3 Total Assets: Mortgage loan receivable held for investment, net, at amortized cost: Mortgage loan receivables held for investment, net, at amortized cost $ 2,365,204 $ — $ — $ 2,328,441 $ 2,328,441 Allowance for loan losses N/A — — (41,507) (41,507) Mortgage loan receivables held for sale 30,478 — — 32,082 32,082 CMBS(5) 11,523 — — 11,074 11,074 CMBS interest-only(5) 10,566 (2) — — 675 675 Allowance for current expected credit losses N/A — — (20) (20) FHLB stock 31,000 — — 31,000 31,000 $ — $ — $ 2,361,745 $ 2,361,745 Liabilities: Repurchase agreements - short-term 708,833 $ — $ — $ 708,833 $ 708,833 Repurchase agreements - long-term 112,004 — — 112,004 112,004 Revolving credit facility 266,430 — — 266,430 266,430 Mortgage loan financing 761,793 — — 786,405 786,405 Secured financing facility 192,646 — — 192,646 192,646 CLO debt 276,516 — — 276,516 276,516 Borrowings from the FHLB 288,000 — — 289,091 289,091 Senior unsecured notes 1,612,299 — — 1,607,930 1,607,930 $ — $ — $ 4,239,855 $ 4,239,855 (1) Measured at fair value on a recurring basis with the net unrealized gains or losses recorded as a component of other comprehensive income (loss) in equity. (2) Represents notional outstanding balance of underlying collateral. (3) Measured at fair value on a recurring basis with the net unrealized gains or losses recorded in current period earnings. (4) Measured at fair value on a recurring basis with the net unrealized gains or losses recorded in current period earnings. The outstanding face amount of the nonhedge derivatives represents the notional amount of the underlying contracts. |
Schedule of changes in Level 3 of financial instruments | The following table summarizes changes in Level 3 financial instruments reported at fair value on the consolidated statements of financial condition for the six months ended June 30, 2021 and 2020 ($ in thousands): Six Months Ended June 30, Level 3 2021 2020 Balance at January 1, $ 1,046,569 $ 1,695,913 Transfer from level 2 — — Purchases 101,358 437,536 Sales (339,238) (517,535) Paydowns/maturities (106,197) (52,271) Amortization of premium/discount (3,702) (4,278) Unrealized gain/(loss) 8,184 (51,709) Realized gain/(loss) on sale(1) 595 (12,773) Balance at June 30, $ 707,569 $ 1,494,883 (1) Includes realized losses on securities recorded as other than temporary impairments. |
Schedule of quantitative information | The following is quantitative information about significant unobservable inputs in our Level 3 measurements for those assets and liabilities measured at fair value on a recurring basis ($ in thousands): June 30, 2021 Financial Instrument Carrying Value Valuation Technique Unobservable Input Minimum Weighted Average Maximum CMBS(1) $ 663,528 Discounted cash flow Yield (4) (0.13) % 1.88 % 11.47 % Duration (years)(5) 0 1.93 8.79 CMBS interest-only(1) 18,215 (2) Discounted cash flow Yield (4) 0.50 % 2.94 % 5.09 % Duration (years)(5) 0.15 1.93 2.82 Prepayment speed (CPY)(5) 100.00 100.00 100.00 GNMA interest-only(3) 699 (2) Discounted cash flow Yield (4) — % 9.36 % 40.60 % Duration (years)(5) 0 2.56 5.81 Prepayment speed (CPJ)(5) 5.00 18.60 35.00 Agency securities(1) 580 Discounted cash flow Yield (4) 0.58 % 0.65 % 1.16 % Duration (years)(5) 0 0.84 0.96 GNMA permanent securities(1) 24,547 Discounted cash flow Yield (4) 2.67 % 3.48 % 3.79 % Duration (years)(5) 1.8 3.37 3.42 Total $ 707,569 (1) CMBS, CMBS interest-only securities, Agency securities, GNMA construction securities, GNMA permanent securities and corporate bonds are classified as available-for-sale and reported at fair value with changes in fair value recorded in the current period in other comprehensive income. (2) The amounts presented represent the principal amount of the mortgage loans outstanding in the pool in which the interest-only securities participate. (3) Agency interest-only securities are recorded at fair value with changes in fair value recorded in current period earnings. Sensitivity of the Fair Value to Changes in the Unobservable Inputs (4) Significant increase (decrease) in the unobservable input in isolation would result in significantly lower (higher) fair value measurement. (5) Significant increase (decrease) in the unobservable input in isolation would result in either a significantly lower or higher (lower or higher) fair value measurement depending on the structural features of the security in question. December 31, 2020 Financial Instrument Carrying Value Valuation Technique Unobservable Input Minimum Weighted Average Maximum CMBS(1) $ 992,226 Discounted cash flow Yield (3) — % 2.09 % 23.85 % Duration (years)(4) 0.00 2.68 5.82 CMBS interest-only(1) 21,537 (2) Discounted cash flow Yield (3) 0.56 % 2.51 % 9.94 % Duration (years)(4) 0.12 2.23 3.15 Prepayment speed (CPY)(4) 100.00 100.00 100.00 GNMA interest-only(3) 1,001 (2) Discounted cash flow Yield (4) — % 7.93 % 35.82 % Duration (years)(5) 0.00 2.80 6.79 Prepayment speed (CPJ)(5) 5.00 17.78 35.00 Agency securities(1) 605 Discounted cash flow Yield (4) 0.44 % 11.31 % 72.00 % Duration (years)(5) 0.00 1.23 1.44 GNMA permanent securities(1) 31,199 Discounted cash flow Yield (4) — % 2.99 % 3.47 % Duration (years)(5) 1.57 9.74 14.57 Total $ 1,046,568 (1) CMBS, CMBS interest-only securities, Agency securities, GNMA construction securities, GNMA permanent securities and corporate bonds are classified as available-for-sale and reported at fair value with changes in fair value recorded in the current period in other comprehensive income. (2) The amounts presented represent the principal amount of the mortgage loans outstanding in the pool in which the interest-only securities participate. (3) Agency interest-only securities are recorded at fair value with changes in fair value recorded in current period earnings. Sensitivity of the Fair Value to Changes in the Unobservable Inputs (4) Significant increase (decrease) in the unobservable input in isolation would result in significantly lower (higher) fair value measurement. (5) Significant increase (decrease) in the unobservable input in isolation would result in either a significantly lower or higher (lower or higher) fair value measurement depending on the structural features of the security in question. |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Company's performance evaluation by segment | The Company evaluates performance based on the following financial measures for each segment ($ in thousands): Three months ended June 30, 2021 Loans Securities Real Estate (1) Corporate/Other(2) Company Interest income $ 34,253 $ 3,216 $ — $ 108 $ 37,577 Interest expense (13,681) (556) (9,944) (21,045) (45,226) Net interest income (expense) 20,572 2,660 (9,944) (20,937) (7,649) Provision for (release of) loan loss reserves 335 — — 335 Net interest income (expense) after provision for (release of) loan reserves 20,907 2,660 (9,944) (20,937) (7,314) Real estate operating income — — 26,558 — 26,558 Sale of loans, net 3,392 — — — 3,392 Realized gain (loss) on securities — 15 — — 15 Unrealized gain (loss) on Agency interest-only securities — (48) — — (48) Realized gain on sale of real estate, net — 19,389 — 19,389 Impairment of real estate — — — — — Fee and other income 2,295 — 14 142 2,451 Net result from derivative transactions (2,792) (1,052) — — (3,844) Earnings (loss) from investment in unconsolidated joint ventures 78 — 159 — 237 Total other income (loss) 2,973 (1,085) 46,120 142 48,150 Salaries and employee benefits — — — (8,477) (8,477) Operating expenses(3) 29 — — (4,245) (4,216) Real estate operating expenses — — (6,345) — (6,345) Fee expense (944) (61) (1,018) (172) (2,195) Depreciation and amortization — — (9,440) (24) (9,464) Total costs and expenses (915) (61) (16,803) (12,918) (30,697) Income tax (expense) benefit — — — 318 318 Segment profit (loss) $ 22,965 $ 1,514 $ 19,373 $ (33,395) $ 10,457 Total assets as of June 30, 2021 $ 2,554,339 $ 719,183 $ 986,267 $ 1,357,020 $ 5,616,809 Three months ended June 30, 2020 Loans Securities Real Estate (1) Corporate/Other(2) Company Interest income $ 53,641 $ 8,177 $ 2 $ 276 $ 62,096 Interest expense (11,732) (7,795) (9,758) (39,140) (68,425) Net interest income (expense) 41,909 382 (9,756) (38,864) (6,329) Provision for (release of) loan loss reserves 726 3 — — 729 Net interest income (expense) after provision for (release of) loan reserves 42,635 385 (9,756) (38,864) (5,600) Real estate operating income — — 23,773 — 23,773 Sale of loans, net (744) — — — (744) Realized gain (loss) on securities — (14,798) — — (14,798) Unrealized gain (loss) on equity securities — 401 — — 401 Unrealized gain (loss) on Agency interest-only securities — 98 — — 98 Realized gain on sale of real estate, net — — (1) — (1) Fee and other income 2,429 2 — 1,074 3,505 Net result from derivative transactions (588) (225) — — (813) Earnings (loss) from investment in unconsolidated joint ventures — — 471 — 471 Gain (loss) on extinguishment of debt — — — 19,017 19,017 Total other income (loss) 1,097 (14,522) 24,243 20,091 30,909 Salaries and employee benefits — — — (7,001) (7,001) Operating expenses(3) — — — (6,224) (6,224) Real estate operating expenses — — (6,034) — (6,034) Fee expense (1,474) (61) (442) — (1,977) Depreciation and amortization — — (9,791) (25) (9,816) Total costs and expenses (1,474) (61) (16,267) (13,250) (31,052) Income tax (expense) benefit — — — 550 550 Segment profit (loss) $ 42,258 $ (14,198) $ (1,780) $ (31,473) $ (5,193) Total assets as of December 31, 2020 $ 2,343,070 $ 1,058,298 $ 1,031,557 $ 1,448,303 $ 5,881,229 Six months ended June 30, 2021 Loans Securities Real Estate (1) Corporate/Other(2) Company Interest income $ 70,145 $ 6,450 $ — $ 270 76,865 Interest expense (27,757) (1,388) (18,729) (43,325) (91,199) Net interest income (expense) 42,388 5,061 (18,729) (43,056) (14,334) Provision for (release of) loan loss reserves 4,586 — — — 4,586 Net interest income (expense) after provision for (release of) loan reserves 46,974 5,061 (18,729) (43,056) (9,748) Real estate operating income — — 50,718 — 50,718 Sale of loans, net 3,392 — — — 3,392 Realized gain (loss) on securities — 594 — — 594 Unrealized gain (loss) on Agency interest-only securities — (68) — — (68) Realized gain on sale of real estate, net — — 19,389 — 19,389 Fee and other income 5,264 — 47 424 5,735 Net result from derivative transactions 251 676 — — 927 Earnings (loss) from investment in unconsolidated joint ventures 218 — 455 — 673 Total other income (loss) 9,125 1,202 70,609 424 81,360 Salaries and employee benefits — — — (18,011) (18,011) Operating expenses(3) 38 — — (8,495) (8,457) Real estate operating expenses — — (12,555) — (12,555) Fee expense (2,252) (111) (1,140) (290) (3,793) Depreciation and amortization — — (18,950) (50) (19,000) Total costs and expenses (2,214) (111) (32,645) (26,846) (61,816) Income tax (expense) benefit — — — 1,096 1,096 Segment profit (loss) $ 53,885 $ 6,152 $ 19,235 $ (68,382) $ 10,892 Total assets as of June 30, 2021 $ 2,554,339 $ 719,183 $ 986,267 $ 1,357,020 $ 5,616,809 Six months ended June 30, 2020 Loans Securities Real Estate (1) Corporate/Other(2) Company Interest income $ 112,546 $ 21,040 $ 10 $ 1,090 $ 134,686 Interest expense (16,602) (14,554) (19,993) (68,678) (119,827) Net interest income (expense) 95,944 6,486 (19,983) (67,588) 14,859 Provision for (release of) loan loss reserves (25,855) 3 — — (25,852) Net interest income (expense) after provision for (release of) loan reserves 70,089 6,489 (19,983) (67,588) (10,993) Operating lease income — — 50,101 — 50,101 Sale of loans, net 261 — — — 261 Realized gain (loss) on securities — (11,787) — — (11,787) Unrealized gain (loss) on equity securities — (132) — — (132) Unrealized gain (loss) on Agency interest-only securities — 174 — — 174 Realized gain on sale of real estate, net — — 10,528 — 10,528 Impairment of real estate — — — — — Fee and other income 3,854 403 25 742 5,024 Net result from derivative transactions (11,939) (4,309) — — (16,248) Earnings (loss) from investment in unconsolidated joint ventures — — 912 — 912 Gain (loss) on extinguishment of debt — — — 21,077 21,077 Total other income (loss) (7,824) (15,651) 61,566 21,819 59,910 Salaries and employee benefits — — — (24,023) (24,023) Operating expenses(3) — — — (12,018) (12,018) Real estate operating expenses — — (13,981) — (13,981) Fee expense (2,664) (133) (618) — (3,415) Depreciation and amortization — — (19,775) (50) (19,825) Total costs and expenses (2,664) (133) (34,374) (36,091) (73,262) Income tax (expense) benefit — — — 5,091 5,091 Segment profit (loss) $ 59,601 $ (9,295) $ 7,209 $ (76,769) $ (19,254) Total assets as of December 31, 2020 $ 2,343,070 $ 1,058,298 $ 1,031,557 $ 1,448,303 $ 5,881,229 (1) Includes the Company’s investment in unconsolidated joint ventures that held real estate of $37.8 million and $46.3 million as of June 30, 2021 and December 31, 2020, respectively. (2) Corporate/Other represents all corporate level and unallocated items including any intercompany eliminations necessary to reconcile to consolidated Company totals. This segment also includes the Company’s investment in unconsolidated joint ventures and strategic investments that are not related to the other reportable segments above, including the Company’s investment in FHLB stock of $13.0 million and $31.0 million as of June 30, 2021 and December 31, 2020, respectively, and the Company’s senior unsecured notes of $2.1 billion and $1.6 billion as of June 30, 2021 and December 31, 2020, respectively. |
ORGANIZATION AND OPERATIONS (De
ORGANIZATION AND OPERATIONS (Details) | Jun. 30, 2021 |
LCFH | |
ORGANIZATION AND OPERATIONS | |
Ownership interest in LCFH | 100.00% |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES - Reclassifications (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Jan. 01, 2021 | Dec. 31, 2020 | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Other assets | [1] | $ 58,566 | $ 147,633 | ||
FHLB stock | $ 13,000 | $ 31,000 | [1] | ||
Revision of Prior Period, Reclassification, Adjustment | |||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Other assets | $ 31,000 | ||||
FHLB stock | $ (31,000) | ||||
[1] | Includes amounts relating to consolidated variable interest entities. Refer to Note 1 and Note 10. |
MORTGAGE LOAN RECEIVABLES - Sch
MORTGAGE LOAN RECEIVABLES - Schedule of Mortgage Loans (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Jan. 01, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||||
Outstanding Face Amount | $ 2,607,211 | $ 2,395,682 | ||||
Allowance for credit losses | (35,891) | (41,507) | $ (11,600) | |||
Carrying Value | $ 2,554,339 | $ 2,343,070 | ||||
Weighted average yield | 6.12% | 6.74% | ||||
Remaining Maturity | 2 years 14 days | 1 year 2 months 23 days | ||||
Principal balance of loans on non-accrual status | $ 129,468 | $ 175,022 | ||||
First mortgage loans | ||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||||
Outstanding Face Amount | 2,430,910 | 2,243,639 | ||||
Carrying Value gross, consumer and commercial real estate | $ 2,414,167 | $ 2,232,749 | ||||
Weighted average yield | 5.94% | 6.50% | ||||
Remaining Maturity | 1 year 9 months 29 days | 1 year | ||||
Mezzanine loans | ||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||||
Outstanding Face Amount | $ 117,103 | $ 121,565 | ||||
Carrying Value gross, consumer and commercial real estate | $ 116,881 | $ 121,310 | ||||
Weighted average yield | 10.91% | 10.83% | ||||
Remaining Maturity | 2 years 6 months 21 days | 2 years 5 months 1 day | ||||
Total mortgage loans | ||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||||
Outstanding Face Amount | $ 2,548,013 | $ 2,365,204 | ||||
Carrying Value gross, consumer and commercial real estate | $ 2,531,048 | $ 2,354,059 | ||||
Weighted average yield | 6.17% | 6.65% | ||||
Remaining Maturity | 1 year 10 months 9 days | 1 year 25 days | ||||
Total mortgage loan receivables held for investment, net, at amortized cost | ||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||||
Outstanding Face Amount | $ 2,548,013 | $ 2,365,204 | ||||
Allowance for credit losses | (35,891) | (41,507) | $ (49,102) | $ (20,500) | ||
Carrying Value | 2,495,157 | 2,312,552 | ||||
Principal balance of loans on non-accrual status | 43,800 | $ 45,000 | ||||
Mortgage loan receivables held for sale, First Mortgage Loans | ||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||||
Outstanding Face Amount | 59,198 | 30,478 | ||||
Carrying Value | $ 59,182 | $ 30,518 | ||||
Weighted average yield | 4.25% | 4.05% | ||||
Remaining Maturity | 9 years 9 months 21 days | 9 years 2 months 4 days |
MORTGAGE LOAN RECEIVABLES - Add
MORTGAGE LOAN RECEIVABLES - Additional Information (Details) | Jan. 01, 2020USD ($)loans | Jul. 30, 2021loan | Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Jun. 30, 2021USD ($)loansecurity | Jun. 30, 2020USD ($) | Dec. 31, 2020USD ($)security | Dec. 31, 2018USD ($)loan | Dec. 31, 2019USD ($) | Dec. 31, 2016USD ($) |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||||||||
Unamortized discounts included in mortgage loan receivables held for investment, at amortized cost | $ 500,000 | $ 500,000 | $ 500,000 | ||||||||
General CECL Reserve | $ 11,600,000 | 35,891,000 | 35,891,000 | 41,507,000 | |||||||
Percentage of total loan portfolio | 0.36% | ||||||||||
Loans that previously had asset-specific reserves | loans | 3 | ||||||||||
Provision for current expected credit loss (implementation impact) | $ 5,800,000 | (350,000) | $ (355,000) | (4,466,000) | $ 25,638,000 | ||||||
Allowance for current expected credit losses | 36,300,000 | 36,300,000 | |||||||||
Individually impaired loans | 70,651,000 | 70,651,000 | 116,440,000 | ||||||||
Provision for (release of) loan loss reserves | (335,000) | (729,000) | (4,586,000) | 25,852,000 | |||||||
Decrease of reserve on unfunded commitments | (100,000) | ||||||||||
Loans nonaccrual status, amount | 129,468,000 | $ 129,468,000 | 175,022,000 | ||||||||
Minimum | |||||||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||||||||
Direct capitalization rate | 4.75% | 4.70% | |||||||||
Maximum | |||||||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||||||||
Direct capitalization rate | 5.20% | 5.00% | |||||||||
Asset Specific Reserve, Company Loan | |||||||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||||||||
General CECL Reserve | 14,700,000 | ||||||||||
Carrying value of financing receivable | 39,800,000 | ||||||||||
Provision for (release of) loan loss reserves | $ (4,500,000) | ||||||||||
Accounting Standards Update 2016-13 | |||||||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||||||||
Carrying value of held for investment loan portfolio | $ 3,200,000,000 | ||||||||||
Loans that previously had asset-specific reserves | loan | 3 | ||||||||||
Accounting Standards Update 2016-13 | Asset Specific Reserve, Company Loan | |||||||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||||||||
General CECL Reserve | 20,200,000 | $ 7,500,000 | $ 20,200,000 | ||||||||
Number or loans in default | 3 | ||||||||||
Total mortgage loan receivables held for investment, net, at amortized cost | |||||||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||||||||
Loans receivable with variable rates of interest | $ 2,100,000,000 | $ 2,100,000,000 | $ 1,900,000,000 | ||||||||
Loans receivable with variable rates of interest | 84.30% | 84.30% | 82.00% | ||||||||
Loans receivable with variable rates of interest, subject to interest rate floors | 100.00% | 100.00% | 100.00% | ||||||||
General CECL Reserve | $ 35,891,000 | $ 49,102,000 | $ 35,891,000 | $ 49,102,000 | $ 41,507,000 | $ 20,500,000 | |||||
Number or loans in default | loan | 3 | ||||||||||
Loans nonaccrual status, amount | 43,800,000 | $ 43,800,000 | $ 45,000,000 | ||||||||
Total mortgage loan receivables held for investment, net, at amortized cost | Subsequent Event | |||||||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||||||||
Number or loans in default | loan | 1 | ||||||||||
Total mortgage loan receivables held for investment, net, at amortized cost | Two Company Loans | |||||||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||||||||
Number or loans in default | 2 | 2 | |||||||||
Loans nonaccrual status, amount | 24,200,000 | $ 24,200,000 | $ 24,200,000 | $ 26,900,000 | |||||||
Loans nonaccrual status, amount impaired | 17,500,000 | $ 17,500,000 | |||||||||
Total mortgage loan receivables held for investment, net, at amortized cost | One Company Loan | |||||||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||||||||
Number or loans in default | 1 | 1 | 1 | ||||||||
Loans nonaccrual status, amount | 36,400,000 | $ 36,400,000 | $ 36,400,000 | $ 5,900,000 | |||||||
Total mortgage loan receivables held for investment, net, at amortized cost | One Company Loan | Series A | |||||||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||||||||
Loans nonaccrual status, amount | 35,000,000 | ||||||||||
Total mortgage loan receivables held for investment, net, at amortized cost | One Company Loan | Series B | |||||||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||||||||
Loans nonaccrual status, amount | 10,000,000 | ||||||||||
Total mortgage loan receivables held for investment, net, at amortized cost | Asset Specific Reserve, Company Loan | |||||||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||||||||
General CECL Reserve | 10,000,000 | ||||||||||
Loan reserve amount | $ 2,700,000 | ||||||||||
Total mortgage loan receivables held for investment, net, at amortized cost | Asset Specific Reserve, Company Loan | Minimum | |||||||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||||||||
Direct capitalization rate | 7.50% | 8.25% | |||||||||
Total mortgage loan receivables held for investment, net, at amortized cost | Asset Specific Reserve, Company Loan | Maximum | |||||||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||||||||
Direct capitalization rate | 8.60% | 8.75% | |||||||||
Total mortgage loan receivables held for investment, net, at amortized cost | Two Of Company Loans 2 | |||||||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||||||||
Number or loans in default | loan | 2 | 2 | |||||||||
Total mortgage loan receivables held for investment, net, at amortized cost | Three Of Company Loans | |||||||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||||||||
Loans in default, carrying value | 79,000,000 | $ 79,000,000 | |||||||||
Total mortgage loan receivables held for investment, net, at amortized cost | Two Of Company Loans 1 | |||||||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||||||||
Number or loans in default | 2 | 2 | |||||||||
Loans nonaccrual status, amount | 26,300,000 | $ 26,300,000 | $ 27,100,000 | ||||||||
Mortgage loan receivables held for sale | |||||||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||||||||
Loans receivable with fixed rates of interest | $ 59,200,000 | $ 59,200,000 | $ 30,500,000 | ||||||||
Percentage of loans receivable with fixed rates of interest | 100.00% | 100.00% | 100.00% | ||||||||
Loan on non-accrual status | |||||||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||||||||
Loans nonaccrual status, amount | $ 0 | $ 0 |
MORTGAGE LOAN RECEIVABLES - Act
MORTGAGE LOAN RECEIVABLES - Activity in Loan Portfolio (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Jan. 01, 2020 | Dec. 31, 2019 | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Movement in Mortgage Loans on Real Estate [Roll Forward] | |||||||
Sale of loans, net | $ 3,392 | $ (744) | $ 3,392 | $ 261 | |||
Allowance for credit losses | (35,891) | (35,891) | $ (41,507) | $ (11,600) | |||
Total mortgage loans | |||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Movement in Mortgage Loans on Real Estate [Roll Forward] | |||||||
Mortgage loans receivable, beginning balance | 2,354,059 | 3,257,036 | |||||
Origination of mortgage loan receivables | 795,717 | 334,347 | |||||
Repayment of mortgage loan receivables | (532,878) | (446,080) | |||||
Proceeds from sales of mortgage loan receivables | (46,557) | (165,364) | |||||
Non-cash disposition of loans via foreclosure | (45,000) | (27,107) | |||||
Sale of loans, net | 0 | (6,665) | |||||
Accretion/amortization of discount, premium and other fees | 5,707 | 8,917 | |||||
Mortgage loans receivable, ending balance | 2,531,048 | 2,955,084 | 2,531,048 | 2,955,084 | |||
Total mortgage loan receivables held for investment, net, at amortized cost | |||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Movement in Mortgage Loans on Real Estate [Roll Forward] | |||||||
Allowance for credit losses | (35,891) | (49,102) | (35,891) | (49,102) | $ (41,507) | $ (20,500) | |
Release of asset-specific loan loss provision via foreclosure | 1,150 | 2,000 | |||||
Provision expense for current expected credit loss | (4,964) | ||||||
Provision expense for current expected credit loss (impact to earnings) | 4,466 | (17,638) | |||||
Asset-specific provision for loan loss reserve | (8,000) | ||||||
Mortgage loan receivables held for sale | |||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Movement in Mortgage Loans on Real Estate [Roll Forward] | |||||||
Mortgage loans receivable, beginning balance | 30,518 | 122,325 | |||||
Origination of mortgage loan receivables | 76,404 | 212,845 | |||||
Repayment of mortgage loan receivables | (80) | (292) | |||||
Proceeds from sales of mortgage loan receivables | (51,052) | (255,827) | |||||
Non-cash disposition of loans via foreclosure | 0 | 0 | |||||
Sale of loans, net | 3,392 | 6,926 | |||||
Accretion/amortization of discount, premium and other fees | 0 | 0 | |||||
Mortgage loans receivable, ending balance | $ 59,182 | $ 85,977 | $ 59,182 | $ 85,977 |
MORTGAGE LOAN RECEIVABLES - Pro
MORTGAGE LOAN RECEIVABLES - Provision for Loan Losses (Details) $ in Thousands | Jan. 01, 2020USD ($) | Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($)loansecurity | Jun. 30, 2020USD ($) | Dec. 31, 2020USD ($)security | Dec. 31, 2018USD ($)loan | Dec. 31, 2016USD ($) |
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||
Provision for loan losses at beginning of period | $ 20,500 | $ 36,241 | $ 49,457 | $ 41,507 | $ 20,500 | $ 20,500 | ||
Provision for current expected credit loss (implementation impact) | 5,800 | (350) | (355) | (4,466) | 25,638 | |||
Foreclosure of loans subject to asset-specific reserve | 0 | 0 | (1,150) | (2,000) | ||||
Provision for loan losses at end of period | 35,891 | 49,102 | 35,891 | 49,102 | 41,507 | |||
Principal balance of loans on non-accrual status | 129,468 | 129,468 | 175,022 | |||||
Provision for (release of) loan loss reserves | (335) | (729) | (4,586) | 25,852 | ||||
Held-to-maturity Securities | ||||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||
Unfunded commitments of mortgage loan receivables held for investment | (800) | |||||||
Provision for (release of) loan loss reserves | $ 22 | |||||||
Cumulative Effect, Period Of Adoption, Adjusted Balance | ||||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||
Provision for current expected credit loss (implementation impact) | 0 | $ 0 | 0 | $ 4,964 | ||||
Asset Specific Reserve, Company Loan | ||||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||
Provision for (release of) loan loss reserves | (4,500) | |||||||
Total mortgage loan receivables held for investment, net, at amortized cost | ||||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||
Principal balance of loans on non-accrual status | 43,800 | $ 43,800 | $ 45,000 | |||||
Number or loans in default | loan | 3 | |||||||
Total mortgage loan receivables held for investment, net, at amortized cost | Two Company Loans | ||||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||
Principal balance of loans on non-accrual status | 24,200 | $ 24,200 | $ 24,200 | $ 26,900 | ||||
Number or loans in default | 2 | 2 | ||||||
Total mortgage loan receivables held for investment, net, at amortized cost | Two Of Company Loans 1 | ||||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||
Principal balance of loans on non-accrual status | 26,300 | $ 26,300 | $ 27,100 | |||||
Number or loans in default | 2 | 2 | ||||||
Total mortgage loan receivables held for investment, net, at amortized cost | One Company Loan | ||||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||
Principal balance of loans on non-accrual status | 36,400 | $ 36,400 | $ 36,400 | $ 5,900 | ||||
Number or loans in default | 1 | 1 | 1 | |||||
Total mortgage loan receivables held for investment, net, at amortized cost | One Company Loan | Series B | ||||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||
Principal balance of loans on non-accrual status | $ 10,000 | |||||||
Total mortgage loan receivables held for investment, net, at amortized cost | One Of Company Loans 1 | ||||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||
Principal balance of loans on non-accrual status | 12,100 | $ 12,100 | $ 43,800 | |||||
Number or loans in default | security | 1 | 1 | ||||||
Total mortgage loan receivables held for investment, net, at amortized cost | One Of Company Loans 2 | ||||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||
Principal balance of loans on non-accrual status | $ 30,500 | $ 30,500 | $ 30,600 | |||||
Number or loans in default | security | 1 | 1 | ||||||
Total mortgage loan receivables held for investment, net, at amortized cost | One Of Company Loans 3 | ||||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||
Principal balance of loans on non-accrual status | $ 13,000 | |||||||
Number or loans in default | security | 1 | |||||||
Total mortgage loan receivables held for investment, net, at amortized cost | Two Of Company Loans 2 | ||||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||
Number or loans in default | loan | 2 | 2 |
MORTGAGE LOAN RECEIVABLES - Ind
MORTGAGE LOAN RECEIVABLES - Individually Impaired Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | $ 2,531,048 | $ 2,354,059 |
Subtotal loans | 2,460,397 | 2,237,619 |
Individually impaired loans | 70,651 | 116,440 |
Subtotal loans, 2021 | 783,354 | |
Subtotal loans, 2020 | 123,885 | 253,974 |
Subtotal loans, 2019 | 853,265 | 1,051,415 |
Subtotal loans, 2018 | 401,890 | 537,791 |
Subtotal loans, 2017 and Earlier | 298,003 | 188,654 |
Subtotal loans, 2016 and Earlier | 205,785 | |
Individually impaired loans, 2021 | 0 | |
Individually impaired loans, 2020 | 0 | 0 |
Individually impaired loans, 2019 | 0 | 0 |
Individually impaired loans, 2018 | 0 | 44,952 |
Individually impaired loans, 2017 and Earlier | 70,651 | 0 |
Individually impaired loans, 2016 and Earlier | 71,488 | |
Total loans, 2021 | 783,354 | |
Total loans, 2020 | 123,885 | 253,974 |
Total loans, 2019 | 853,265 | 1,051,415 |
Total loans, 2018 | 401,890 | 582,743 |
Total loans, 2017 and Earlier | 368,654 | 188,654 |
Total loans, 2016 and Earlier | 277,273 | |
All Of Company Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Accrued interest receivable | 11,900 | 14,500 |
Office | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 803,534 | 580,548 |
2021 | 261,182 | |
2020 | 29,548 | 0 |
2019 | 187,005 | 196,610 |
2018 | 206,888 | 249,330 |
2017 | 83,673 | |
2017 and Earlier | 118,911 | |
2016 and Earlier | 50,935 | |
Multifamily | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 421,421 | 394,862 |
2021 | 175,376 | |
2020 | 15,083 | 65,537 |
2019 | 196,426 | 260,254 |
2018 | 13,451 | 44,665 |
2017 | 24,406 | |
2017 and Earlier | 21,085 | |
2016 and Earlier | 0 | |
Hospitality | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 294,487 | 328,395 |
2021 | 0 | |
2020 | 0 | 0 |
2019 | 43,621 | 43,000 |
2018 | 139,777 | 139,394 |
2017 | 67,307 | |
2017 and Earlier | 111,089 | |
2016 and Earlier | 78,694 | |
Mixed Use | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 420,435 | 221,509 |
2021 | 193,744 | |
2020 | 79,254 | 106,537 |
2019 | 147,437 | 101,704 |
2018 | 0 | 0 |
2017 | 13,268 | |
2017 and Earlier | 0 | |
2016 and Earlier | 0 | |
Retail | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 151,177 | 176,226 |
2021 | 29,395 | |
2020 | 0 | 0 |
2019 | 85,268 | 110,492 |
2018 | 0 | 0 |
2017 | 0 | |
2017 and Earlier | 36,514 | |
2016 and Earlier | 65,734 | |
Other | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 95,677 | 240,135 |
2021 | 20,802 | |
2020 | 0 | 31,217 |
2019 | 44,842 | 131,434 |
2018 | 30,033 | 77,484 |
2017 | 0 | |
2017 and Earlier | 0 | |
2016 and Earlier | 0 | |
Industrial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 111,736 | 167,221 |
2021 | 0 | |
2020 | 0 | 46,130 |
2019 | 105,283 | 114,630 |
2018 | 0 | 0 |
2017 | 0 | |
2017 and Earlier | 6,453 | |
2016 and Earlier | 6,461 | |
Manufactured Housing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 118,716 | 77,537 |
2021 | 59,641 | |
2020 | 0 | 4,553 |
2019 | 43,383 | 57,305 |
2018 | 11,741 | 11,718 |
2017 | 0 | |
2017 and Earlier | 3,951 | |
2016 and Earlier | 3,961 | |
Self-Storage | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 43,214 | 51,186 |
2021 | 43,214 | |
2020 | 0 | 0 |
2019 | 0 | 35,986 |
2018 | 0 | 15,200 |
2017 | 0 | |
2017 and Earlier | 0 | |
2016 and Earlier | 0 | |
Northeast | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 688,885 | 707,485 |
Southwest | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 435,247 | 437,153 |
South | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 584,708 | 313,759 |
Midwest | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | 336,273 | 462,602 |
West | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total loans | $ 415,284 | $ 316,620 |
REAL ESTATE SECURITIES - Summar
REAL ESTATE SECURITIES - Summary of Securities (Details) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021USD ($)security | Dec. 31, 2020USD ($)security | |
Debt Securities, Available-for-sale [Line Items] | ||
Outstanding Face Amount | $ 2,164,583 | $ 2,619,891 |
Amortized Cost Basis | 721,351 | 1,068,650 |
Gross Unrealized Gains | 3,002 | 3,157 |
Gross Unrealized Losses | (5,150) | (13,489) |
Carrying Value | $ 719,203 | 1,058,298 |
Carrying value, before allowance for credit loss | $ 1,058,318 | |
Number of Securities | security | 105 | 123 |
Weighted Average Coupon | 0.86% | 0.91% |
Weighted Average Yield | 1.72% | 1.66% |
Remaining Duration | 2 years 14 days | 2 years 3 days |
Provision for current expected credit losses | $ (20) | $ (20) |
Total Amortized Cost Basis | 721,351 | 1,068,650 |
Total Gross Unrealized Gains | 3,002 | 3,157 |
Total real estate securities, Gross Unrealized Losses | $ (5,170) | $ (13,509) |
Total number of Securities | security | 105 | 123 |
CMBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Outstanding Face Amount | $ 677,025 | $ 1,015,520 |
Amortized Cost Basis | 677,901 | 1,015,282 |
Gross Unrealized Gains | 1,726 | 1,382 |
Gross Unrealized Losses | (5,069) | (13,363) |
Carrying Value | $ 674,558 | $ 1,003,301 |
Number of Securities | security | 72 | 90 |
Weighted Average Coupon | 1.68% | 1.56% |
Weighted Average Yield | 1.65% | 1.56% |
Remaining Duration | 2 years 25 days | 2 years 3 days |
Risk retention requirement, amount | $ 11,000 | $ 11,100 |
CMBS interest-only | ||
Debt Securities, Available-for-sale [Line Items] | ||
Outstanding Face Amount | 1,399,645 | 1,498,181 |
Amortized Cost Basis | 18,072 | 21,567 |
Gross Unrealized Gains | 748 | 672 |
Gross Unrealized Losses | 0 | (26) |
Carrying Value | $ 18,820 | $ 22,213 |
Number of Securities | security | 14 | 15 |
Weighted Average Coupon | 0.43% | 0.44% |
Weighted Average Yield | 2.00% | 3.53% |
Remaining Duration | 2 years 3 days | 2 years 2 months 8 days |
Risk retention requirement, amount | $ 600 | $ 700 |
GNMA interest-only | ||
Debt Securities, Available-for-sale [Line Items] | ||
Outstanding Face Amount | 63,305 | 75,350 |
Amortized Cost Basis | 635 | 868 |
Gross Unrealized Gains | 145 | 232 |
Gross Unrealized Losses | (81) | (100) |
Carrying Value | $ 699 | $ 1,000 |
Number of Securities | security | 14 | 11 |
Weighted Average Coupon | 0.40% | 0.43% |
Weighted Average Yield | 4.79% | 5.06% |
Remaining Duration | 3 years 4 months 20 days | 3 years 7 months 2 days |
Agency securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Outstanding Face Amount | $ 568 | $ 586 |
Amortized Cost Basis | 572 | 593 |
Gross Unrealized Gains | 7 | 12 |
Gross Unrealized Losses | 0 | 0 |
Carrying Value | $ 579 | $ 605 |
Number of Securities | security | 2 | 2 |
Weighted Average Coupon | 2.50% | 2.55% |
Weighted Average Yield | 1.60% | 1.64% |
Remaining Duration | 11 months 19 days | 1 year 3 months 3 days |
GNMA permanent securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Outstanding Face Amount | $ 24,040 | $ 30,254 |
Amortized Cost Basis | 24,171 | 30,340 |
Gross Unrealized Gains | 376 | 859 |
Gross Unrealized Losses | 0 | 0 |
Carrying Value | $ 24,547 | $ 31,199 |
Number of Securities | security | 3 | 5 |
Weighted Average Coupon | 4.12% | 3.87% |
Weighted Average Yield | 3.54% | 3.49% |
Remaining Duration | 1 year 2 months 4 days | 1 year 11 months 23 days |
REAL ESTATE SECURITIES - Securi
REAL ESTATE SECURITIES - Securities by Remaining Maturity (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 | |
Debt Securities, Available-for-sale [Line Items] | |||
Within 1 year | $ 297,736 | $ 232,681 | |
1-5 years | 358,267 | 801,978 | |
5-10 years | 54,430 | 23,659 | |
After 10 years | 8,770 | 0 | |
Total | 719,203 | 1,058,298 | |
Carrying Value | [1] | 719,183 | 1,058,298 |
CMBS | |||
Debt Securities, Available-for-sale [Line Items] | |||
Within 1 year | 296,214 | 230,977 | |
1-5 years | 315,343 | 748,953 | |
5-10 years | 54,231 | 23,371 | |
After 10 years | 8,770 | 0 | |
Total | 674,558 | 1,003,301 | |
CMBS interest-only | |||
Debt Securities, Available-for-sale [Line Items] | |||
Within 1 year | 947 | 1,572 | |
1-5 years | 17,873 | 20,641 | |
5-10 years | 0 | 0 | |
After 10 years | 0 | 0 | |
Total | 18,820 | 22,213 | |
GNMA interest-only | |||
Debt Securities, Available-for-sale [Line Items] | |||
Within 1 year | 67 | 65 | |
1-5 years | 433 | 647 | |
5-10 years | 199 | 288 | |
After 10 years | 0 | 0 | |
Total | 699 | 1,000 | |
Agency securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Within 1 year | 508 | 0 | |
1-5 years | 71 | 605 | |
5-10 years | 0 | 0 | |
After 10 years | 0 | 0 | |
Total | 579 | 605 | |
GNMA permanent securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Within 1 year | 0 | 67 | |
1-5 years | 24,547 | 31,132 | |
5-10 years | 0 | 0 | |
After 10 years | 0 | 0 | |
Total | 24,547 | 31,199 | |
Provision for current expected credit losses | |||
Debt Securities, Available-for-sale [Line Items] | |||
Within 1 year | 0 | 0 | |
1-5 years | 0 | 0 | |
5-10 years | 0 | 0 | |
After 10 years | 0 | 0 | |
Total | $ 20 | $ 20 | |
[1] | Includes amounts relating to consolidated variable interest entities. Refer to Note 1 and Note 10. |
REAL ESTATE SECURITIES - Additi
REAL ESTATE SECURITIES - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Other than temporary impairment losses included in consolidated statements of income | $ 0 | $ 0.1 | $ 0.1 | $ 0.3 |
REAL ESTATE AND RELATED LEASE_3
REAL ESTATE AND RELATED LEASE INTANGIBLES, NET - Schedule of Real Estate Portfolio (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 | |
Real estate and related lease intangibles, net | |||
Less: Accumulated depreciation and amortization | $ (239,435) | $ (230,925) | |
Real estate and related lease intangibles, net | [1] | 948,448 | 985,304 |
Below market lease intangibles, net (other liabilities) | (35,807) | (36,952) | |
In-place leases and other intangibles | |||
Real estate and related lease intangibles, net | |||
Real estate | 153,989 | 157,176 | |
Undepreciated real estate and related lease intangibles | |||
Real estate and related lease intangibles, net | |||
Real estate | 1,187,883 | 1,216,229 | |
Land | |||
Real estate and related lease intangibles, net | |||
Real estate | 213,477 | 220,511 | |
Building | |||
Real estate and related lease intangibles, net | |||
Real estate | $ 820,417 | $ 838,542 | |
[1] | Includes amounts relating to consolidated variable interest entities. Refer to Note 1 and Note 10. |
REAL ESTATE AND RELATED LEASE_4
REAL ESTATE AND RELATED LEASE INTANGIBLES, NET - Additional Information (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Feb. 28, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Business Acquisition [Line Items] | ||||||
Foreclosed properties held in real estate | $ 104,800,000 | $ 106,800,000 | $ 104,800,000 | |||
Unbilled rent receivables | 100,000 | 500,000 | 100,000 | |||
Unencumbered real estates | 74,800,000 | 75,900,000 | 74,800,000 | |||
Real estate operating income | 2,800,000 | $ 600,000 | 3,800,000 | $ 2,500,000 | ||
Realized (gain) loss on disposition of loan | (26,000) | (51,000) | ||||
Provision for (release of) loan loss reserves | $ (335,000) | $ (729,000) | $ (4,586,000) | $ 25,852,000 | ||
Hotel | Miami, FL | ||||||
Business Acquisition [Line Items] | ||||||
Realized (gain) loss on disposition of loan | $ (25,800) | |||||
Real estate acquired through foreclosure, net basis | $ 45,100,000 | |||||
Provision for (release of) loan loss reserves | $ 1,200,000 |
REAL ESTATE AND RELATED LEASE_5
REAL ESTATE AND RELATED LEASE INTANGIBLES, NET - Schedule of Depreciation and Amortization Expense on Real Estate (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Real Estate [Abstract] | ||||
Depreciation expense | $ 7,825 | $ 8,110 | $ 15,815 | $ 16,383 |
Amortization expense | 1,639 | 1,681 | 3,185 | 3,392 |
Total real estate depreciation and amortization expense | 9,464 | 9,791 | 19,000 | 19,775 |
Depreciation on corporate fixed assets | $ 25 | $ 50 | $ 25 | $ 50 |
REAL ESTATE AND RELATED LEASE_6
REAL ESTATE AND RELATED LEASE INTANGIBLES, NET - Unamortized Favorable Lease Intangibles (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Business Acquisition [Line Items] | |||||
Gross intangible assets | $ 153,989 | $ 153,989 | $ 157,176 | ||
Accumulated amortization | 67,996 | 67,996 | 66,014 | ||
Net intangible assets | 85,993 | 85,993 | 91,162 | ||
Unamortized favorable lease intangibles | 4,000 | 4,000 | $ 4,200 | ||
Increase in operating lease income for amortization of below market lease intangibles acquired | 576 | $ 619 | 1,146 | $ 1,371 | |
Above Market Leases | |||||
Business Acquisition [Line Items] | |||||
Reduction in operating lease income for amortization of above market lease intangibles acquired | $ (92) | $ (92) | $ (183) | $ (183) |
REAL ESTATE AND RELATED LEASE_7
REAL ESTATE AND RELATED LEASE INTANGIBLES, NET - Expected Future Amortization Expense (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Finite-Lived Intangible Assets [Line Items] | ||
Net intangible assets | $ 85,993 | $ 91,162 |
Adjustment to Operating Lease Income | ||
Finite-Lived Intangible Assets [Line Items] | ||
2021 (last 6 months) | 536 | |
2022 | 1,071 | |
2023 | 1,071 | |
2024 | 1,071 | |
2025 | 1,071 | |
Thereafter | 27,000 | |
Net intangible assets | 31,820 | |
Amortization Expense | ||
Finite-Lived Intangible Assets [Line Items] | ||
2021 (last 6 months) | 2,620 | |
2022 | 5,241 | |
2023 | 5,241 | |
2024 | 5,241 | |
2025 | 5,241 | |
Thereafter | 58,423 | |
Net intangible assets | $ 82,007 |
REAL ESTATE AND RELATED LEASE_8
REAL ESTATE AND RELATED LEASE INTANGIBLES, NET - Future Minimum Rental Payments Receivable (Details) $ in Thousands | Jun. 30, 2021USD ($) |
Real Estate [Abstract] | |
2021 (last 6 months) | $ 46,824 |
2022 | 70,156 |
2023 | 62,414 |
2024 | 61,450 |
2025 | 60,173 |
Thereafter | 448,700 |
Total | $ 749,717 |
REAL ESTATE AND RELATED LEASE_9
REAL ESTATE AND RELATED LEASE INTANGIBLES, NET - Schedule of Real Estate Properties Acquired (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | Feb. 28, 2021 | Mar. 31, 2020 | |
Business Acquisition [Line Items] | |||||
Purchase Price | $ 43,750 | $ 31,674 | |||
Real estate acquired through foreclosure | $ 43,750 | $ 43,750 | 25,435 | ||
Net Leased Real Estate | |||||
Business Acquisition [Line Items] | |||||
Purchase Price | $ 6,239 | ||||
Ownership Interest | 100.00% | 100.00% | |||
Miami, FL | Hotel | |||||
Business Acquisition [Line Items] | |||||
Real estate acquired through foreclosure | $ 43,750 | ||||
Ownership Interest | 100.00% | ||||
Los Angeles, California | Diversified | |||||
Business Acquisition [Line Items] | |||||
Real estate acquired through foreclosure | $ 21,535 | ||||
Ownership Interest | 100.00% | ||||
Winston Salem, North Carolina | Diversified | |||||
Business Acquisition [Line Items] | |||||
Real estate acquired through foreclosure | $ 3,900 | ||||
Ownership Interest | 100.00% |
REAL ESTATE AND RELATED LEAS_10
REAL ESTATE AND RELATED LEASE INTANGIBLES, NET - Real Estate Properties Sold (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2021USD ($)property | Feb. 28, 2021USD ($)property | Jun. 30, 2021USD ($)property | Jun. 30, 2020USD ($)property | Mar. 31, 2020USD ($)property | Jun. 30, 2021USD ($)property | Jun. 30, 2020USD ($)property | Dec. 31, 2020USD ($) | ||
Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||
Net Sales Proceeds | $ 82,482 | $ 11,426 | |||||||
Net Book Value | [1] | $ 948,448 | $ 948,448 | 948,448 | $ 985,304 | ||||
Realized gain (loss) on sale of real estate, net | 19,389 | $ (1) | 19,389 | 10,528 | |||||
Realized loss included in disposal of fixed assets | 100 | ||||||||
2021 Disposal Properties | |||||||||
Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||
Net Sales Proceeds | 82,482 | ||||||||
Net Book Value | 63,093 | 63,093 | 63,093 | ||||||
Realized gain (loss) on sale of real estate, net | 19,389 | ||||||||
2021 Disposal Properties | Hotel | Miami, FL | |||||||||
Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||
Net Sales Proceeds | $ 43,750 | ||||||||
Net Book Value | 43,750 | ||||||||
Realized gain (loss) on sale of real estate, net | $ 0 | ||||||||
Properties | property | 1 | ||||||||
Units Sold | property | 0 | ||||||||
Units Remaining | property | 0 | ||||||||
2021 Disposal Properties | Retail | North Dartmouth, MA | |||||||||
Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||
Net Sales Proceeds | 38,732 | ||||||||
Net Book Value | 19,343 | $ 19,343 | $ 19,343 | ||||||
Realized gain (loss) on sale of real estate, net | $ 19,389 | ||||||||
Properties | property | 1 | 1 | 1 | ||||||
Units Sold | property | 0 | ||||||||
Units Remaining | property | 0 | ||||||||
2020 Disposal Properties | |||||||||
Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||
Net Sales Proceeds | 30,390 | ||||||||
Net Book Value | 19,862 | 19,862 | |||||||
Realized gain (loss) on sale of real estate, net | 10,528 | ||||||||
2020 Disposal Properties | Condominium | Miami, FL | |||||||||
Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||
Net Sales Proceeds | 931 | ||||||||
Net Book Value | $ 924 | 924 | |||||||
Realized gain (loss) on sale of real estate, net | $ 7 | ||||||||
Properties | property | 0 | 0 | |||||||
Units Sold | property | 3 | ||||||||
Units Remaining | property | 3 | ||||||||
2020 Disposal Properties | Diversified | Richmond, VA | |||||||||
Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||
Net Sales Proceeds | $ 22,526 | ||||||||
Net Book Value | 14,829 | ||||||||
Realized gain (loss) on sale of real estate, net | $ 7,697 | ||||||||
Properties | property | 7 | ||||||||
Units Sold | property | 0 | ||||||||
Units Remaining | property | 0 | ||||||||
2020 Disposal Properties | Diversified | Richmond, VA | |||||||||
Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||
Net Sales Proceeds | $ 6,933 | ||||||||
Net Book Value | 4,109 | ||||||||
Realized gain (loss) on sale of real estate, net | $ 2,824 | ||||||||
Properties | property | 1 | ||||||||
Units Sold | property | 0 | ||||||||
Units Remaining | property | 0 | ||||||||
[1] | Includes amounts relating to consolidated variable interest entities. Refer to Note 1 and Note 10. |
INVESTMENT IN AND ADVANCES TO_3
INVESTMENT IN AND ADVANCES TO UNCONSOLIDATED JOINT VENTURES - Investments in Unconsolidated Joint Ventures (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 | |
Schedule of Equity Method Investments [Line Items] | |||
Investment in unconsolidated joint ventures | [1] | $ 37,819 | $ 46,253 |
Grace Lake JV, LLC | |||
Schedule of Equity Method Investments [Line Items] | |||
Investment in unconsolidated joint ventures | 4,645 | 4,023 | |
24 Second Avenue Holdings LLC | |||
Schedule of Equity Method Investments [Line Items] | |||
Investment in unconsolidated joint ventures | $ 33,174 | $ 42,230 | |
[1] | Includes amounts relating to consolidated variable interest entities. Refer to Note 1 and Note 10. |
INVESTMENT IN AND ADVANCES TO_4
INVESTMENT IN AND ADVANCES TO UNCONSOLIDATED JOINT VENTURES - Summary of Allocated Earnings (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Schedule of Equity Method Investments [Line Items] | ||||
Earnings (loss) from investment in unconsolidated joint ventures | $ 237 | $ 471 | $ 673 | $ 912 |
Grace Lake JV, LLC | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Earnings (loss) from investment in unconsolidated joint ventures | 325 | 263 | 622 | 449 |
24 Second Avenue Holdings LLC | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Earnings (loss) from investment in unconsolidated joint ventures | $ (88) | $ 208 | $ 51 | $ 463 |
INVESTMENT IN AND ADVANCES TO_5
INVESTMENT IN AND ADVANCES TO UNCONSOLIDATED JOINT VENTURES - Additional Information (Details) | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Apr. 30, 2012 | Jun. 30, 2021USD ($)property | Jun. 30, 2021USD ($)property | Jun. 30, 2020USD ($) | Mar. 31, 2019USD ($)property | Mar. 22, 2013 | |
Grace Lake JV, LLC | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Percentage of equity kicker received with right to convert upon capital event | 25.00% | |||||
Preferred return used to determine distribution of excess cash flow | 8.25% | |||||
Percentage of distribution of all excess cash flows and all disposition proceeds upon any sale entitled after consideration of preferred return and return of equity remaining in the property to operating partner | 25.00% | |||||
Distributions from operations of investment in unconsolidated joint ventures | $ 0 | $ 0 | ||||
Grace Lake JV, LLC | Ladder Capital Financial Corporation | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Percentage of investment of operating partner | 81.00% | |||||
Grace Lake JV, LLC | LP Units | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Ownership interest | 19.00% | |||||
Grace Lake JV, LLC | Limited liability company | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Ownership interest | 19.00% | 19.00% | ||||
24 Second Avenue Holdings LLC | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Distributions from operations of investment in unconsolidated joint ventures | $ 6,900,000 | $ 9,100,000 | ||||
24 Second Avenue Holdings LLC | Apartment Building | Real Estate Property Sold | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Number of real estate properties, under contract | property | 24 | 24 | ||||
Real estate properties, under contract | $ 62,700,000 | $ 62,700,000 | ||||
24 Second Avenue Holdings LLC | Apartment Building | Real Estate Property Sold 1 | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Number of real estate properties, under contract | property | 2 | 2 | ||||
Real estate properties, under contract | $ 10,200,000 | $ 10,200,000 | ||||
Real estate properties, deposit amount | 10.00% | 10.00% | ||||
24 Second Avenue Holdings LLC | Other | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Number of real estate properties | property | 1 | |||||
24 Second Avenue Holdings LLC | Mezzanine Loan | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Committed amount on credit agreement | $ 6,500,000 | |||||
24 Second Avenue Holdings LLC | Co-venturer | Construction Loan | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Common equity interest | 35,000,000 | |||||
Preferred equity position | 35,000,000 | |||||
Loan refinance | 50,400,000 | |||||
Committed amount on credit agreement | $ 48,100,000 | |||||
Remaining capital commitment to operating partner | $ 0 | $ 0 |
INVESTMENT IN AND ADVANCES TO_6
INVESTMENT IN AND ADVANCES TO UNCONSOLIDATED JOINT VENTURES - Results from Operations of the Unconsolidated Joint Ventures (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||||||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | |||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Total assets | [1] | $ 5,616,809 | $ 5,616,809 | $ 5,881,229 | ||||||||
Total liabilities | [1] | 4,096,944 | 4,096,944 | 4,332,804 | ||||||||
Partners’/members’ capital | 1,519,865 | [1] | $ 1,508,380 | 1,519,865 | [1] | $ 1,508,380 | $ 1,530,839 | 1,548,425 | [1] | $ 1,500,827 | $ 1,638,977 | |
Total expenses | 30,697 | 31,052 | 61,816 | 73,262 | ||||||||
Net income (loss) | 10,457 | (5,193) | 10,892 | (19,254) | ||||||||
24 Second Avenue Holdings LLC | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Total assets | 117,970 | 117,970 | 114,916 | |||||||||
Total liabilities | 69,848 | 69,848 | 75,775 | |||||||||
Partners’/members’ capital | 48,122 | 48,122 | $ 39,141 | |||||||||
Total revenues | 4,543 | 4,294 | 9,057 | 8,770 | ||||||||
Total expenses | 3,242 | 3,450 | 6,565 | 7,424 | ||||||||
Net income (loss) | $ 1,301 | $ 844 | $ 2,492 | $ 1,346 | ||||||||
[1] | Includes amounts relating to consolidated variable interest entities. Refer to Note 1 and Note 10. |
DEBT OBLIGATIONS, NET - Schedul
DEBT OBLIGATIONS, NET - Schedule of Company's Debt Obligations (Details) | 3 Months Ended | 6 Months Ended | |||||||
Mar. 31, 2021 | Jun. 30, 2021USD ($)Extension | May 25, 2021USD ($) | May 24, 2021USD ($) | May 19, 2021USD ($) | May 18, 2021USD ($) | Dec. 31, 2020USD ($)Extension | Mar. 23, 2020USD ($) | Feb. 26, 2020USD ($) | |
Assets Sold under Agreements to Repurchase [Line Items] | |||||||||
Debt Obligations Outstanding | $ 525,700,000 | $ 820,837,000 | |||||||
Debt obligations | 3,975,715,000 | ||||||||
Carrying Amount of Collateral | 0 | 0 | |||||||
Committed Loan Repurchase Facility | |||||||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||||||
Committed Financing | 1,200,000,000 | 1,550,000,000 | |||||||
Debt Obligations Outstanding | 218,356,000 | 255,368,000 | |||||||
Committed but Unfunded | 981,644,000 | 1,294,632,000 | |||||||
Carrying Amount of Collateral | 366,471,000 | 439,386,000 | |||||||
Fair Value of Collateral | 366,471,000 | 439,386,000 | |||||||
Committed Loan Repurchase Facility | Maturing on 19 December 2022 | |||||||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||||||
Committed Financing | 500,000,000 | 500,000,000 | |||||||
Debt Obligations Outstanding | 109,300,000 | 112,004,000 | |||||||
Committed but Unfunded | 390,700,000 | 387,996,000 | |||||||
Carrying Amount of Collateral | 178,903,000 | 180,416,000 | |||||||
Fair Value of Collateral | $ 178,903,000 | $ 180,416,000 | |||||||
Number of extension maturity periods | Extension | 2 | 2 | |||||||
Length of extension options | 12 months | ||||||||
Committed amount on credit agreement | $ 900,000,000 | ||||||||
Committed Loan Repurchase Facility | Maturing On February 26 2022 | |||||||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||||||
Committed Financing | 100,000,000 | $ 100,000,000 | $ 250,000,000 | ||||||
Debt Obligations Outstanding | 0 | ||||||||
Committed but Unfunded | 100,000,000 | ||||||||
Carrying Amount of Collateral | 0 | ||||||||
Fair Value of Collateral | $ 0 | ||||||||
Number of extension maturity periods | Extension | 2 | ||||||||
Length of extension options | 12 months | ||||||||
Committed Loan Repurchase Facility | Maturing on 16 December 2021 | |||||||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||||||
Committed Financing | $ 300,000,000 | $ 300,000,000 | |||||||
Debt Obligations Outstanding | 82,873,000 | 90,197,000 | |||||||
Committed but Unfunded | 217,127,000 | 209,803,000 | |||||||
Carrying Amount of Collateral | 142,515,000 | 154,850,000 | |||||||
Fair Value of Collateral | $ 142,515,000 | $ 154,850,000 | |||||||
Number of extension maturity periods | Extension | 2 | 2 | |||||||
Length of extension options | 364 days | 364 days | |||||||
Committed Loan Repurchase Facility | Maturing on April 30 2024 | |||||||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||||||
Committed Financing | $ 100,000,000 | $ 100,000,000 | $ 300,000,000 | ||||||
Debt Obligations Outstanding | 0 | ||||||||
Committed but Unfunded | 100,000,000 | ||||||||
Carrying Amount of Collateral | 0 | ||||||||
Fair Value of Collateral | $ 0 | ||||||||
Number of extension maturity periods | Extension | 1 | ||||||||
Length of extension options | 12 months | ||||||||
Number of additional extension maturity periods | Extension | 2 | ||||||||
Length of additional extension maturity periods | 6 months | ||||||||
Committed Loan Repurchase Facility | Maturing On 31 December 2022 | |||||||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||||||
Committed Financing | $ 100,000,000 | $ 100,000,000 | |||||||
Debt Obligations Outstanding | 26,183,000 | 26,183,000 | |||||||
Committed but Unfunded | 73,817,000 | 73,817,000 | |||||||
Carrying Amount of Collateral | 45,053,000 | 45,235,000 | |||||||
Fair Value of Collateral | $ 45,053,000 | 45,235,000 | |||||||
Number of extension maturity periods | Extension | 2 | ||||||||
Length of extension options | 12 months | ||||||||
Committed Loan Repurchase Facility | Maturing On 24 October 2021 | |||||||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||||||
Committed Financing | $ 100,000,000 | 100,000,000 | |||||||
Debt Obligations Outstanding | 0 | 15,672,000 | |||||||
Committed but Unfunded | 100,000,000 | 84,328,000 | |||||||
Carrying Amount of Collateral | 0 | 30,600,000 | |||||||
Fair Value of Collateral | $ 0 | 30,600,000 | |||||||
Length of extension options | 364 days | ||||||||
Committed Loan Repurchase Facility | Maturing on 6 November 2022 | |||||||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||||||
Committed Financing | 300,000,000 | ||||||||
Debt Obligations Outstanding | 11,312,000 | ||||||||
Committed but Unfunded | 288,688,000 | ||||||||
Carrying Amount of Collateral | 28,285,000 | ||||||||
Fair Value of Collateral | 28,285,000 | ||||||||
Number of extension maturity periods | Extension | 1 | ||||||||
Length of extension options | 12 months | ||||||||
Number of additional extension maturity periods | Extension | 2 | ||||||||
Length of additional extension maturity periods | 6 months | ||||||||
Committed Loan Repurchase Facility | Maturing on 23 December 2021 | |||||||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||||||
Committed amount on credit agreement | 900,000,000 | ||||||||
Committed Loan Repurchase Facility | Maturing On February 26 2021 | |||||||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||||||
Committed Financing | 250,000,000 | ||||||||
Debt Obligations Outstanding | 0 | ||||||||
Committed but Unfunded | 250,000,000 | ||||||||
Carrying Amount of Collateral | 0 | ||||||||
Fair Value of Collateral | 0 | ||||||||
Number of extension maturity periods | Extension | 3 | ||||||||
Length of extension options | 12 months | ||||||||
Committed Securities Repurchase Facility | Maturing on 19 December 2022 | |||||||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||||||
Committed amount on credit agreement | $ 900,000,000 | ||||||||
Committed Securities Repurchase Facility | Maturing On 27 May 2023 | |||||||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||||||
Committed Financing | $ 790,700,000 | ||||||||
Debt Obligations Outstanding | 62,914,000 | ||||||||
Committed but Unfunded | 727,786,000 | ||||||||
Carrying Amount of Collateral | 75,064,000 | ||||||||
Fair Value of Collateral | 75,064,000 | ||||||||
Committed Securities Repurchase Facility | Maturing on 23 December 2021 | |||||||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||||||
Committed Financing | 790,700,000 | 787,996,000 | |||||||
Debt Obligations Outstanding | 149,633,000 | ||||||||
Committed but Unfunded | 638,363,000 | ||||||||
Carrying Amount of Collateral | 226,008,000 | ||||||||
Fair Value of Collateral | 226,008,000 | ||||||||
Committed amount on credit agreement | 900,000,000 | ||||||||
Uncommitted Securities Repurchase Facility | Various Date | |||||||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||||||
Debt Obligations Outstanding | 244,430,000 | 415,836,000 | |||||||
Carrying Amount of Collateral | 279,661,000 | 502,476,000 | |||||||
Fair Value of Collateral | 279,661,000 | 502,476,000 | |||||||
Restricted securities held-to-maturity | 2,100,000 | 2,100,000 | |||||||
Total Repurchase Facilities | |||||||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||||||
Committed Financing | 1,600,000,000 | 1,950,000,000 | |||||||
Debt Obligations Outstanding | 525,700,000 | 820,837,000 | |||||||
Committed but Unfunded | 1,318,730,000 | 1,544,999,000 | |||||||
Carrying Amount of Collateral | 721,196,000 | 1,167,870,000 | |||||||
Fair Value of Collateral | 721,196,000 | 1,167,870,000 | |||||||
Revolving Credit Facility | Maturing on 11 February 2022 | |||||||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||||||
Committed Financing | 266,430,000 | 266,430,000 | |||||||
Debt Obligations Outstanding | 0 | 266,430,000 | |||||||
Committed but Unfunded | $ 266,430,000 | $ 0 | |||||||
Number of extension maturity periods | Extension | 3 | 3 | |||||||
Length of extension options | 12 months | 12 months | |||||||
Mortgage Loan Financing | Various Date | |||||||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||||||
Committed Financing | $ 745,971,000 | $ 766,064,000 | |||||||
Debt Obligations Outstanding | 745,971,000 | 766,064,000 | |||||||
Committed but Unfunded | 0 | 0 | |||||||
Carrying Amount of Collateral | 874,924,000 | 909,406,000 | |||||||
Fair Value of Collateral | 1,106,518,000 | 1,133,703,000 | |||||||
Secured Financing Facility | |||||||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||||||
Unamortized debt issuance costs | 4,535,000 | ||||||||
Secured Financing Facility | Maturing On 6 May 2023 | |||||||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||||||
Committed Financing | 161,369,000 | 206,350,000 | |||||||
Debt Obligations Outstanding | 152,142,000 | 192,646,000 | |||||||
Committed but Unfunded | 0 | 0 | |||||||
Carrying Amount of Collateral | 246,288,000 | 327,769,000 | |||||||
Fair Value of Collateral | 246,512,000 | 328,097,000 | |||||||
Unamortized debt issuance costs | 4,500,000 | 7,200,000 | |||||||
Unamortized debt discount | 4,700,000 | 6,600,000 | |||||||
Obligations unsecured and guaranteed by the company | 19,800,000 | ||||||||
CLO Debt | |||||||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||||||
Unamortized debt issuance costs | 941,000 | ||||||||
CLO Debt | Maturing On 16 May 2024 | |||||||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||||||
Committed Financing | 169,783,000 | 279,156,000 | |||||||
Debt Obligations Outstanding | 168,843,000 | 276,516,000 | |||||||
Committed but Unfunded | 0 | ||||||||
Carrying Amount of Collateral | 296,992,000 | 362,600,000 | |||||||
Fair Value of Collateral | 296,992,000 | 362,600,000 | |||||||
Unamortized debt issuance costs | 900,000 | 2,600,000 | |||||||
Borrowings from the FHLB | Various Date | |||||||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||||||
Committed Financing | 288,000,000 | 1,500,000,000 | |||||||
Debt Obligations Outstanding | 288,000,000 | 288,000,000 | |||||||
Committed but Unfunded | 0 | 1,212,000,000 | |||||||
Carrying Amount of Collateral | 319,565,000 | 388,400,000 | |||||||
Fair Value of Collateral | 319,565,000 | 392,212,000 | |||||||
Restricted securities held-to-maturity | 8,700,000 | 9,400,000 | |||||||
Senior Unsecured Notes | |||||||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||||||
Unamortized debt issuance costs | 20,585,000 | ||||||||
Senior Unsecured Notes | Various Date | |||||||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||||||
Debt issued | 2,115,644,000 | 1,612,299,000 | |||||||
Senior Unsecured Notes | 2,095,059,000 | 1,599,371,000 | |||||||
Committed but Unfunded | 0 | 0 | |||||||
Unamortized debt issuance costs | 20,600,000 | 12,900,000 | |||||||
Total Debt Obligations | |||||||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||||||
Debt issued | 5,347,197,000 | 6,580,299,000 | |||||||
Debt obligations | 3,975,715,000 | 4,209,864,000 | |||||||
Committed but Unfunded | 1,585,160,000 | 2,756,999,000 | |||||||
Carrying Amount of Collateral | 2,458,965,000 | 3,156,045,000 | |||||||
Fair Value of Collateral | 2,690,783,000 | $ 3,384,482,000 | |||||||
Purchase Right | |||||||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||||||
Unamortized debt issuance costs | $ 4,692,000 | ||||||||
Minimum | Committed Loan Repurchase Facility | Maturing on 19 December 2022 | |||||||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||||||
Interest rate | 1.82% | 1.91% | |||||||
Minimum | Committed Loan Repurchase Facility | Maturing On February 26 2022 | |||||||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||||||
Interest rate | 0.00% | ||||||||
Minimum | Committed Loan Repurchase Facility | Maturing on 16 December 2021 | |||||||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||||||
Interest rate | 1.82% | 1.91% | |||||||
Minimum | Committed Loan Repurchase Facility | Maturing on April 30 2024 | |||||||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||||||
Interest rate | 0.00% | ||||||||
Minimum | Committed Loan Repurchase Facility | Maturing On 31 December 2022 | |||||||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||||||
Interest rate | 2.20% | 2.28% | |||||||
Minimum | Committed Loan Repurchase Facility | Maturing On 24 October 2021 | |||||||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||||||
Interest rate | 0.00% | 2.66% | |||||||
Minimum | Committed Loan Repurchase Facility | Maturing on 6 November 2022 | |||||||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||||||
Interest rate | 2.19% | ||||||||
Minimum | Committed Loan Repurchase Facility | Maturing On February 26 2021 | |||||||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||||||
Interest rate | 0.00% | ||||||||
Minimum | Committed Securities Repurchase Facility | Maturing On 27 May 2023 | |||||||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||||||
Interest rate | 0.63% | ||||||||
Minimum | Committed Securities Repurchase Facility | Maturing on 23 December 2021 | |||||||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||||||
Interest rate | 0.86% | ||||||||
Minimum | Uncommitted Securities Repurchase Facility | Various Date | |||||||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||||||
Interest rate | 0.55% | 0.73% | |||||||
Minimum | Revolving Credit Facility | Maturing on 11 February 2022 | |||||||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||||||
Interest rate | 0.00% | 3.15% | |||||||
Minimum | Mortgage Loan Financing | Various Date | |||||||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||||||
Interest rate | 3.75% | 3.75% | |||||||
Minimum | Secured Financing Facility | Maturing On 6 May 2023 | |||||||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||||||
Interest rate | 10.75% | 10.75% | |||||||
Minimum | CLO Debt | Maturing On 16 May 2024 | |||||||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||||||
Interest rate | 5.50% | 5.50% | |||||||
Minimum | Borrowings from the FHLB | Various Date | |||||||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||||||
Interest rate | 36.00% | 0.41% | |||||||
Minimum | Senior Unsecured Notes | Various Date | |||||||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||||||
Interest rate | 4.25% | 4.25% | |||||||
Maximum | Committed Loan Repurchase Facility | Maturing on 19 December 2022 | |||||||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||||||
Committed Financing | $ 500,000,000 | ||||||||
Interest rate | 2.07% | 2.16% | |||||||
Maximum | Committed Loan Repurchase Facility | Maturing On February 26 2022 | |||||||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||||||
Interest rate | 0.00% | ||||||||
Maximum | Committed Loan Repurchase Facility | Maturing on 16 December 2021 | |||||||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||||||
Interest rate | 2.82% | 2.91% | |||||||
Maximum | Committed Loan Repurchase Facility | Maturing on April 30 2024 | |||||||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||||||
Interest rate | 0.00% | ||||||||
Maximum | Committed Loan Repurchase Facility | Maturing On 31 December 2022 | |||||||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||||||
Interest rate | 2.20% | 2.28% | |||||||
Maximum | Committed Loan Repurchase Facility | Maturing On 24 October 2021 | |||||||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||||||
Interest rate | 0.00% | 3.50% | |||||||
Maximum | Committed Loan Repurchase Facility | Maturing on 6 November 2022 | |||||||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||||||
Interest rate | 2.19% | ||||||||
Maximum | Committed Loan Repurchase Facility | Maturing on 23 December 2021 | |||||||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||||||
Committed Financing | $ 500,000,000 | ||||||||
Maximum | Committed Loan Repurchase Facility | Maturing On February 26 2021 | |||||||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||||||
Interest rate | 0.00% | ||||||||
Maximum | Committed Securities Repurchase Facility | Maturing On 27 May 2023 | |||||||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||||||
Interest rate | 1.03% | ||||||||
Maximum | Committed Securities Repurchase Facility | Maturing on 23 December 2021 | |||||||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||||||
Interest rate | 1.11% | ||||||||
Maximum | Uncommitted Securities Repurchase Facility | Various Date | |||||||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||||||
Interest rate | 2.14% | 2.84% | |||||||
Maximum | Revolving Credit Facility | Maturing on 11 February 2022 | |||||||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||||||
Interest rate | 0.00% | ||||||||
Maximum | Mortgage Loan Financing | Various Date | |||||||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||||||
Interest rate | 6.16% | 6.16% | |||||||
Maximum | Secured Financing Facility | Maturing On 6 May 2023 | |||||||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||||||
Interest rate | 10.75% | 10.75% | |||||||
Maximum | CLO Debt | Maturing On 16 May 2024 | |||||||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||||||
Interest rate | 5.50% | 5.50% | |||||||
Maximum | Borrowings from the FHLB | Various Date | |||||||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||||||
Interest rate | 2.74% | 2.74% | |||||||
Maximum | Senior Unsecured Notes | Various Date | |||||||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||||||
Interest rate | 5.25% | 5.88% |
DEBT OBLIGATIONS, NET - Sched_2
DEBT OBLIGATIONS, NET - Schedule of Maturities (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2021USD ($) | |
Long-term Debt, Fiscal Year Maturity [Abstract] | |
2021 | $ 631,068 |
2022 | 925,858 |
2023 | 146,112 |
2024 | 296,315 |
2025 | 468,876 |
Thereafter | 1,534,678 |
Subtotal | 4,002,907 |
Premiums included in mortgage loan financing | 3,890 |
Debt obligations | 3,975,715 |
Senior Unsecured Notes | |
Long-term Debt, Fiscal Year Maturity [Abstract] | |
Unamortized debt issuance costs | (20,585) |
Secured Financing Facility | |
Long-term Debt, Fiscal Year Maturity [Abstract] | |
Unamortized debt issuance costs | (4,535) |
Purchase Right | |
Long-term Debt, Fiscal Year Maturity [Abstract] | |
Unamortized debt issuance costs | (4,692) |
CLO Debt | |
Long-term Debt, Fiscal Year Maturity [Abstract] | |
Unamortized debt issuance costs | (941) |
Mortgage Loan Financing | |
Long-term Debt, Fiscal Year Maturity [Abstract] | |
Unamortized debt issuance costs | $ (329) |
Length of extension options | 1 year |
DEBT OBLIGATIONS, NET - Financi
DEBT OBLIGATIONS, NET - Financial Covenants (Details) $ in Millions | Jun. 30, 2021USD ($) |
Debt Disclosure [Abstract] | |
Equity restricted as payment as a dividend | $ 871.4 |
DEBT OBLIGATIONS, NET - Committ
DEBT OBLIGATIONS, NET - Committed Loan and Securities Repurchase Facilities (Details) | 6 Months Ended | |||||
Jun. 30, 2021USD ($)agreement | May 25, 2021USD ($) | May 24, 2021USD ($) | May 19, 2021USD ($) | May 18, 2021USD ($) | Dec. 31, 2020USD ($) | |
Committed Loan Repurchase Facility | ||||||
Debt Instrument [Line Items] | ||||||
Number of agreements | agreement | 6 | |||||
Committed Financing | $ 1,200,000,000 | $ 1,550,000,000 | ||||
Committed Loan Repurchase Facility | Maturing on 23 December 2021 | ||||||
Debt Instrument [Line Items] | ||||||
Committed amount on credit agreement | 900,000,000 | |||||
Committed Loan Repurchase Facility | Maturing on April 30 2024 | ||||||
Debt Instrument [Line Items] | ||||||
Committed Financing | 100,000,000 | $ 100,000,000 | $ 300,000,000 | |||
Committed Loan Repurchase Facility | Maturing On February 26 2022 | ||||||
Debt Instrument [Line Items] | ||||||
Committed Financing | 100,000,000 | $ 100,000,000 | $ 250,000,000 | |||
Committed Securities Repurchase Facility | Maturing on 23 December 2021 | ||||||
Debt Instrument [Line Items] | ||||||
Committed amount on credit agreement | 900,000,000 | |||||
Committed Financing | $ 790,700,000 | $ 787,996,000 |
DEBT OBLIGATIONS, NET - Revolvi
DEBT OBLIGATIONS, NET - Revolving Credit Facility (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Debt Obligations Outstanding | $ 525,700,000 | $ 820,837,000 |
Maturing on 11 February 2022 | Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Debt Obligations Outstanding | 0 | 266,430,000 |
Committed Financing | $ 266,430,000 | $ 266,430,000 |
DEBT OBLIGATIONS, NET - Debt Is
DEBT OBLIGATIONS, NET - Debt Issuance Costs (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Credit Agreement and Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Unamortized debt issuance expense | $ 4.4 | $ 8 |
DEBT OBLIGATIONS, NET - Mortgag
DEBT OBLIGATIONS, NET - Mortgage Loan Financing (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | |||||
Amortization of premiums | $ 662 | $ 587 | |||
Mortgage loan financing | |||||
Debt Instrument [Line Items] | |||||
Secured Debt | $ 746,000 | 746,000 | $ 766,100 | ||
Net unamortized premiums | (3,900) | (3,900) | 4,600 | ||
Amortization of premiums | 400 | $ 300 | 700 | $ 600 | |
Pledged assets, real estate and lease intangibles, net | $ 874,900 | $ 874,900 | $ 909,400 | ||
Minimum | Mortgage loan financing | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate on debt instrument | 3.75% | 3.75% | |||
Maximum | Mortgage loan financing | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate on debt instrument | 6.16% | 6.16% |
DEBT OBLIGATIONS, NET - Secured
DEBT OBLIGATIONS, NET - Secured Financing Facility (Details) - USD ($) | Apr. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | ||||||
Repayment of borrowings under debt obligations | $ (3,385,290,000) | $ (7,902,356,000) | ||||
Debt Obligations Outstanding | $ 525,700,000 | 525,700,000 | $ 820,837,000 | |||
Issuance of purchase right | 0 | $ 8,425,000 | ||||
Debt obligations, net | [1] | 3,975,715,000 | 3,975,715,000 | 4,209,864,000 | ||
Purchase Right | ||||||
Debt Instrument [Line Items] | ||||||
Unamortized debt issuance costs | 4,692,000 | 4,692,000 | ||||
Secured Financing Facility | ||||||
Debt Instrument [Line Items] | ||||||
Debt obligations, net | 152,100,000 | 152,100,000 | ||||
Unamortized debt issuance costs | 4,535,000 | 4,535,000 | ||||
Secured Financing Facility | Maturing On 6 May 2023 | ||||||
Debt Instrument [Line Items] | ||||||
Debt Obligations Outstanding | 152,142,000 | 152,142,000 | 192,646,000 | |||
Issuance of purchase rights | 4,700,000 | 4,700,000 | ||||
Unamortized debt issuance costs | $ 4,500,000 | $ 4,500,000 | $ 7,200,000 | |||
Class A Common Stock | ||||||
Debt Instrument [Line Items] | ||||||
Common stock, authorized (in shares) | 600,000,000 | 600,000,000 | 600,000,000 | |||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | $ 0.001 | |||
Non-Recourse Notes | Koch Real Estate Investments, LLC | Minimum | London Interbank Offered Rate (LIBOR) | ||||||
Debt Instrument [Line Items] | ||||||
Stated interest rate on debt instrument | 0.75% | |||||
Non-Recourse Notes | Koch Real Estate Investments, LLC | Maximum | London Interbank Offered Rate (LIBOR) | ||||||
Debt Instrument [Line Items] | ||||||
Stated interest rate on debt instrument | 10.00% | |||||
Non-Recourse Notes | Secured Debt | Koch Real Estate Investments, LLC | ||||||
Debt Instrument [Line Items] | ||||||
Committed amount on credit agreement | $ 206,400,000 | |||||
Minimum interest premium | 13,900,000 | |||||
Redemption of long-term debt | $ 45,000,000 | |||||
Debt Obligations Outstanding | $ 152,100,000 | $ 152,100,000 | ||||
Non-Recourse Notes | Secured Debt | Koch Real Estate Investments, LLC | Purchase Right | ||||||
Debt Instrument [Line Items] | ||||||
Issuance of purchase right | 200,900,000 | |||||
Debt proceeds allocated to the originally issued debt obligation | 192,500,000 | |||||
Issuance of purchase rights | $ 8,400,000 | |||||
Non-Recourse Notes | Secured Debt | Koch Real Estate Investments, LLC | Class A Common Stock | ||||||
Debt Instrument [Line Items] | ||||||
Common stock, authorized (in shares) | 4,000,000 | |||||
Common stock, par value (in dollars per share) | $ 8 | |||||
[1] | Includes amounts relating to consolidated variable interest entities. Refer to Note 1 and Note 10. |
DEBT OBLIGATIONS, NET - Collate
DEBT OBLIGATIONS, NET - Collateralized Loan Obligation Debt (Details) - USD ($) $ in Thousands | Apr. 27, 2020 | Jun. 30, 2021 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | ||||
Debt obligations, net | [1] | $ 3,975,715 | $ 4,209,864 | |
Loans financed | $ 481,300 | |||
Advance rate | 64.50% | |||
Variable Interest Entity, Primary Beneficiary | ||||
Debt Instrument [Line Items] | ||||
Debt obligations, net | 168,843 | $ 276,516 | ||
Variable Interest Entity, Primary Beneficiary | Collateralized Loan Obligation | ||||
Debt Instrument [Line Items] | ||||
Subordinate and controlling interest | 35.50% | |||
CLO Debt | ||||
Debt Instrument [Line Items] | ||||
Unamortized debt issuance costs | 941 | |||
Various Date | CLO Debt | ||||
Debt Instrument [Line Items] | ||||
Debt obligations, net | $ 168,800 | |||
Non-Recourse Notes | CLO Debt | ||||
Debt Instrument [Line Items] | ||||
Debt obligations, net | $ 310,200 | |||
[1] | Includes amounts relating to consolidated variable interest entities. Refer to Note 1 and Note 10. |
DEBT OBLIGATIONS, NET - Borrowi
DEBT OBLIGATIONS, NET - Borrowings from the Federal Home Loan Bank (“FHLB”) (Details) - USD ($) $ in Thousands | 6 Months Ended | |||
Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | ||||
Cash, cash equivalents and restricted cash | $ 1,285,687 | $ 1,284,284 | $ 874,004 | $ 355,746 |
Tuebor Captive Insurance Company LLC | ||||
Debt Instrument [Line Items] | ||||
Amount restricted from transfer | 2,100,000 | |||
Borrowings from the FHLB | Tuebor Captive Insurance Company LLC | ||||
Debt Instrument [Line Items] | ||||
FHLB borrowings outstanding | $ 288,000 | |||
Average term | 3 years 3 months | |||
Weighted average term | 2 years 3 months 3 days | |||
Weighted average interest rate | 1.07% | |||
Borrowings from the FHLB | Tuebor Captive Insurance Company LLC | Commercial Mortgage Backed Securities and US Agency Securities | ||||
Debt Instrument [Line Items] | ||||
Collateral for debt instrument | $ 236,100 | |||
Cash, cash equivalents and restricted cash | $ 83,500 | |||
Borrowings from the FHLB | Tuebor Captive Insurance Company LLC | Minimum | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate on debt instrument | 0.36% | |||
Advance rates | 71.70% | |||
Borrowings from the FHLB | Tuebor Captive Insurance Company LLC | Maximum | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate on debt instrument | 2.74% | |||
Advance rates | 95.70% |
DEBT OBLIGATIONS, NET - Senior
DEBT OBLIGATIONS, NET - Senior Unsecured Notes (Details) - USD ($) | Jan. 27, 2021 | Jun. 30, 2021 | Jun. 23, 2021 | Dec. 31, 2020 | Jan. 30, 2020 | Sep. 25, 2017 | Mar. 16, 2017 |
Debt Instrument [Line Items] | |||||||
Notes offering | $ 400,000,000 | ||||||
Senior Unsecured Notes | |||||||
Debt Instrument [Line Items] | |||||||
Unamortized debt issuance costs | $ (20,585,000) | ||||||
Various Date | Senior Unsecured Notes | |||||||
Debt Instrument [Line Items] | |||||||
Senior Unsecured Notes | 2,095,059,000 | $ 1,599,371,000 | |||||
Loan refinance | 2,115,644,000 | 1,612,299,000 | |||||
Unamortized debt issuance costs | (20,600,000) | $ (12,900,000) | |||||
Senior Notes Due 2022 | Senior Unsecured Notes | |||||||
Debt Instrument [Line Items] | |||||||
Senior Unsecured Notes | 2,100,000,000 | ||||||
Loan refinance | 465,900,000 | $ 500,000,000 | |||||
Stated interest rate on debt instrument | 5.25% | ||||||
Senior Notes Due 2025 | Senior Unsecured Notes | |||||||
Debt Instrument [Line Items] | |||||||
Loan refinance | 348,000,000 | $ 400,000,000 | |||||
Stated interest rate on debt instrument | 5.25% | ||||||
Senior Notes Due 2027 | Senior Unsecured Notes | |||||||
Debt Instrument [Line Items] | |||||||
Loan refinance | 651,800,000 | $ 750,000,000 | |||||
Stated interest rate on debt instrument | 4.25% | ||||||
Senior Notes Due 2029 | Senior Unsecured Notes | |||||||
Debt Instrument [Line Items] | |||||||
Loan refinance | $ 650,000,000 | $ 650,000,000 | |||||
Stated interest rate on debt instrument | 4.75% | ||||||
Senior Notes Due 2021 | Senior unsecured notes | |||||||
Debt Instrument [Line Items] | |||||||
Stated interest rate on debt instrument | 5.875% | ||||||
Redemption of long-term debt | $ 150,900,000 |
DEBT OBLIGATIONS, NET - Finan_2
DEBT OBLIGATIONS, NET - Financing Strategy in Current Market Conditions (Details) - USD ($) | Apr. 27, 2020 | Jun. 30, 2021 | Dec. 31, 2020 | Apr. 30, 2020 | |
Debt Instrument [Line Items] | |||||
Debt Obligations Outstanding | $ 525,700,000 | $ 820,837,000 | |||
Debt obligations, net | [1] | 3,975,715,000 | 4,209,864,000 | ||
Loans financed | $ 481,300,000 | ||||
Advance rate | 64.50% | ||||
Secured Financing Facility | |||||
Debt Instrument [Line Items] | |||||
Debt obligations, net | 152,100,000 | ||||
Various Date | Borrowings from the FHLB | |||||
Debt Instrument [Line Items] | |||||
Debt Obligations Outstanding | 288,000,000 | 288,000,000 | |||
Maturing On 6 May 2023 | Secured Financing Facility | |||||
Debt Instrument [Line Items] | |||||
Debt Obligations Outstanding | 152,142,000 | 192,646,000 | |||
Maturing on 11 February 2022 | Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Debt Obligations Outstanding | 0 | $ 266,430,000 | |||
Non-Recourse Notes | CLO Debt | |||||
Debt Instrument [Line Items] | |||||
Debt obligations, net | $ 310,200,000 | ||||
Non-Recourse Notes | Secured Debt | Koch Real Estate Investments, LLC | |||||
Debt Instrument [Line Items] | |||||
Debt Obligations Outstanding | $ 152,100,000 | ||||
Non-mark to market financing facility | $ 206,400,000 | ||||
[1] | Includes amounts relating to consolidated variable interest entities. Refer to Note 1 and Note 10. |
DERIVATIVE INSTRUMENTS - Schedu
DERIVATIVE INSTRUMENTS - Schedule of Derivatives Outstanding (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | ||
Derivative [Line Items] | |||
Notional | $ 202,571 | $ 135,171 | |
Fair value, asset | [1] | 0 | 299 |
Fair value, liability | 368 | 0 | |
1 Month LIBOR | |||
Derivative [Line Items] | |||
Notional | 69,571 | 69,571 | |
Fair value, asset | 0 | 0 | |
Fair value, liability | $ 0 | $ 0 | |
Remaining maturity | 4 months 9 days | 4 months 6 days | |
5-year Swap | |||
Derivative [Line Items] | |||
Notional | $ 25,300 | $ 23,800 | |
Fair value, asset | 0 | 108 | |
Fair value, liability | $ 70 | $ 0 | |
Remaining maturity | 3 months | 3 months | |
10-year Swap | |||
Derivative [Line Items] | |||
Notional | $ 107,700 | $ 41,800 | |
Fair value, asset | 0 | 191 | |
Fair value, liability | $ 298 | $ 0 | |
Remaining maturity | 3 months | 3 months | |
Futures | |||
Derivative [Line Items] | |||
Notional | $ 133,000 | $ 65,600 | |
Fair value, asset | 0 | 299 | |
Fair value, liability | $ 368 | $ 0 | |
[1] | Includes amounts relating to consolidated variable interest entities. Refer to Note 1 and Note 10. |
DERIVATIVE INSTRUMENTS - Sche_2
DERIVATIVE INSTRUMENTS - Schedule of Realized Gains (Losses) on Derivatives (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Derivative [Line Items] | ||||
Unrealized Gain/(Loss) | $ (669) | $ (570) | $ (667) | $ (187) |
Realized Gain/(Loss) | (3,175) | (243) | 1,594 | (16,061) |
Net Result from Derivative Transactions | (3,844) | (813) | 927 | (16,248) |
Futures | ||||
Derivative [Line Items] | ||||
Unrealized Gain/(Loss) | (669) | (570) | (667) | (298) |
Realized Gain/(Loss) | (3,175) | (326) | 1,594 | (16,272) |
Net Result from Derivative Transactions | $ (3,844) | (896) | $ 927 | (16,570) |
Credit Derivatives | ||||
Derivative [Line Items] | ||||
Unrealized Gain/(Loss) | 0 | 111 | ||
Realized Gain/(Loss) | 83 | 211 | ||
Net Result from Derivative Transactions | $ 83 | $ 322 |
DERIVATIVE INSTRUMENTS - Additi
DERIVATIVE INSTRUMENTS - Additional Information (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Cash margins held as collateral for derivatives by counterparties | $ 1.9 | $ 0.8 |
OFFSETTING ASSETS AND LIABILI_3
OFFSETTING ASSETS AND LIABILITIES - Offsetting Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 | |
Offsetting of derivative assets | |||
Gross amounts of recognized assets | $ 299 | ||
Gross amounts offset in the balance sheet | 0 | ||
Net amounts of assets presented in the balance sheet | [1] | $ 0 | 299 |
Gross amounts not offset in the balance sheet | |||
Financial instruments | 0 | ||
Cash collateral received/(posted) | 0 | ||
Net amount | $ 299 | ||
[1] | Includes amounts relating to consolidated variable interest entities. Refer to Note 1 and Note 10. |
OFFSETTING ASSETS AND LIABILI_4
OFFSETTING ASSETS AND LIABILITIES - Offsetting Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Derivatives | ||
Gross amounts of recognized liabilities | $ 368 | |
Gross amounts offset in the balance sheet | 0 | |
Net amounts of liabilities presented in the balance sheet | 368 | $ 0 |
Gross amounts not offset in the balance sheet | ||
Financial instruments collateral | 0 | |
Cash collateral posted/(received) | 368 | |
Net amount | 0 | |
Repurchase agreements | ||
Gross amounts of recognized liabilities | 525,700 | 820,837 |
Gross amounts offset in the balance sheet | 0 | 0 |
Net amounts of liabilities presented in the balance sheet | 525,700 | 820,837 |
Gross amounts not offset in the balance sheet | ||
Financial instruments collateral | 525,700 | 820,837 |
Cash collateral posted/(received) | 0 | 0 |
Net amount | 0 | 0 |
Total | ||
Gross amounts of recognized liabilities | 526,068 | 820,837 |
Gross amounts offset in the balance sheet | 0 | 0 |
Net amounts of liabilities presented in the balance sheet | 526,068 | 820,837 |
Gross amounts not offset in the balance sheet | ||
Financial instruments collateral | 525,700 | 820,837 |
Cash collateral posted/(received) | 368 | 0 |
Net amount | $ 0 | $ 0 |
CONSOLIDATED VARIABLE INTERES_3
CONSOLIDATED VARIABLE INTEREST ENTITIES (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | |||
Restricted cash | [1] | $ 115,844 | $ 29,852 | ||||||
Accrued interest receivable | [1] | 12,767 | 16,088 | ||||||
Other assets | [1] | 58,566 | 147,633 | ||||||
Total assets | [1] | 5,616,809 | 5,881,229 | ||||||
Debt obligations, net | [1] | 3,975,715 | 4,209,864 | ||||||
Accrued expenses | [1] | 38,220 | 43,876 | ||||||
Total liabilities | [1] | 4,096,944 | 4,332,804 | ||||||
Total equity | 1,519,865 | [1] | $ 1,530,839 | 1,548,425 | [1] | $ 1,508,380 | $ 1,500,827 | $ 1,638,977 | |
Total liabilities and equity | [1] | 5,616,809 | 5,881,229 | ||||||
Variable Interest Entity, Primary Beneficiary | |||||||||
Restricted cash | 0 | 3,925 | |||||||
Mortgage loan receivables held for investment, net, at amortized cost | 296,992 | 362,600 | |||||||
Accrued interest receivable | 1,050 | 1,382 | |||||||
Other assets | 22 | 69,649 | |||||||
Total assets | 298,064 | 437,556 | |||||||
Debt obligations, net | 168,843 | 276,516 | |||||||
Accrued expenses | 389 | 682 | |||||||
Total liabilities | 169,232 | 277,198 | |||||||
Net equity in VIEs (eliminated in consolidation) | 128,832 | 160,358 | |||||||
Total equity | 128,832 | 160,358 | |||||||
Total liabilities and equity | $ 298,064 | $ 437,556 | |||||||
[1] | Includes amounts relating to consolidated variable interest entities. Refer to Note 1 and Note 10. |
EQUITY STRUCTURE AND ACCOUNTS -
EQUITY STRUCTURE AND ACCOUNTS - Additional Information (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | Oct. 30, 2014 |
2014 Share Repurchase Authorization Program | |||||
Class of Stock [Line Items] | |||||
Remaining amount available for repurchase | $ 36,800,000 | ||||
Percentage of aggregate common stock outstanding under Repurchase Program | 2.50% | ||||
Closing price (in dollars per share) | $ 11.54 | ||||
Class A Common Stock | 2014 Share Repurchase Authorization Program | |||||
Class of Stock [Line Items] | |||||
Additional authorizations | $ 50,000,000 | ||||
Remaining amount available for repurchase | $ 36,790,000 | $ 38,102,000 | $ 39,450,000 | $ 41,132,000 | |
LCFH | |||||
Class of Stock [Line Items] | |||||
Ownership interest in LCFH | 100.00% |
EQUITY STRUCTURE AND ACCOUNTS_2
EQUITY STRUCTURE AND ACCOUNTS - Schedule of Repurchase of Treasury Stock Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Treasury Stock [Roll Forward] | ||||
Repurchases paid | $ (1,098) | $ (482) | $ (1,312) | $ (1,688) |
2014 Share Repurchase Authorization Program | ||||
Treasury Stock [Roll Forward] | ||||
Remaining amount available for repurchase | 36,800 | $ 36,800 | ||
2014 Share Repurchase Authorization Program | Class A Common Stock | ||||
Class of Stock [Line Items] | ||||
Purchase of treasury stock (in shares) | 120,000 | 210,151 | ||
Treasury Stock [Roll Forward] | ||||
Remaining amount available for repurchase | $ 38,102 | $ 41,132 | ||
Additional authorizations | 0 | 0 | ||
Repurchases paid | (1,312) | (1,682) | ||
Repurchases unsettled | 0 | 0 | ||
Remaining amount available for repurchase | $ 36,790 | $ 39,450 | $ 36,790 | $ 39,450 |
EQUITY STRUCTURE AND ACCOUNTS_3
EQUITY STRUCTURE AND ACCOUNTS - Dividends Declared (Details) - $ / shares | Jun. 15, 2021 | Mar. 15, 2021 | May 28, 2020 | Feb. 27, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 |
Class A Common Stock | ||||||||
Class of Stock [Line Items] | ||||||||
Dividends per share of Class A common stock (in dollars per share) | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.34 | $ 0.20 | $ 0.20 | $ 0.40 | $ 0.54 |
EQUITY STRUCTURE AND ACCOUNTS_4
EQUITY STRUCTURE AND ACCOUNTS - Changes in Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |||
AOCI Attributable to Parent [Roll Forward] | ||||||
Beginning Balance | $ 1,530,839 | $ 1,500,827 | $ 1,548,425 | [1] | $ 1,638,977 | |
Other comprehensive income (loss) | 1,403 | 26,123 | 8,252 | (51,884) | ||
Exchange of noncontrolling interest for common stock | 0 | |||||
Rebalancing of ownership percentage between Company and Operating Partnership | 0 | |||||
Ending Balance | 1,519,865 | [1] | 1,508,380 | 1,519,865 | [1] | 1,508,380 |
Accumulated Other Comprehensive Income (Loss) | ||||||
AOCI Attributable to Parent [Roll Forward] | ||||||
Beginning Balance | (3,614) | (65,920) | (10,463) | 4,218 | ||
Other comprehensive income (loss) | 1,403 | 23,612 | 8,252 | (46,530) | ||
Exchange of noncontrolling interest for common stock | (4,915) | |||||
Rebalancing of ownership percentage between Company and Operating Partnership | 2,147 | |||||
Ending Balance | (2,211) | (45,080) | (2,211) | (45,080) | ||
Accumulated Other Comprehensive Income (Loss) of Noncontrolling Interests | ||||||
AOCI Attributable to Parent [Roll Forward] | ||||||
Beginning Balance | (2) | 477 | ||||
Other comprehensive income (loss) | 0 | (5,354) | ||||
Exchange of noncontrolling interest for common stock | 4,915 | |||||
Rebalancing of ownership percentage between Company and Operating Partnership | (2,147) | |||||
Ending Balance | (2) | (2,109) | (2) | (2,109) | ||
Total Accumulated Other Comprehensive Income (Loss) | ||||||
AOCI Attributable to Parent [Roll Forward] | ||||||
Beginning Balance | (10,465) | 4,695 | ||||
Ending Balance | $ (2,213) | $ (47,189) | $ (2,213) | $ (47,189) | ||
[1] | Includes amounts relating to consolidated variable interest entities. Refer to Note 1 and Note 10. |
NONCONTROLLING INTERESTS (Detai
NONCONTROLLING INTERESTS (Details) $ in Millions | Jun. 30, 2021USD ($)propertyJoint_Venture |
LCFH | |
Noncontrolling Interest [Line Items] | |
Ownership interest in LCFH | 100.00% |
Consolidated Joint Venture | |
Noncontrolling Interest [Line Items] | |
Number of consolidated joint ventures | Joint_Venture | 4 |
Consolidated Joint Venture | Isla Vista, CA | Student Housing | |
Noncontrolling Interest [Line Items] | |
Number of real estate properties | property | 40 |
Property book value | $ 81.2 |
Consolidated Joint Venture | Richmond, VA | Office Building | |
Noncontrolling Interest [Line Items] | |
Number of real estate properties | property | 11 |
Property book value | $ 71.4 |
Consolidated Joint Venture | Oakland County, MI | Office Building | |
Noncontrolling Interest [Line Items] | |
Property book value | 8.7 |
Consolidated Joint Venture | Miami, FL | Apartment Building | |
Noncontrolling Interest [Line Items] | |
Property book value | $ 36.8 |
Minimum | Consolidated Joint Venture | Consolidated Joint Ventures | |
Noncontrolling Interest [Line Items] | |
Noncontrolling interest ownership | 10.00% |
Maximum | Consolidated Joint Venture | Consolidated Joint Ventures | |
Noncontrolling Interest [Line Items] | |
Noncontrolling interest ownership | 25.00% |
EARNINGS PER SHARE - Net Income
EARNINGS PER SHARE - Net Income and Weighted Average Shares Outstanding (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Weighted average shares outstanding: | ||||
Basic (in shares) | 124,048,999 | 106,809,987 | 124,012,683 | 106,569,892 |
Diluted (in shares) | 124,480,487 | 106,809,987 | 124,353,202 | 106,569,892 |
Class A Common Stock | ||||
Earnings Per Share | ||||
Basic Net income (loss) available for Class A common shareholders | $ 10,294 | $ (4,189) | $ 10,489 | $ (19,918) |
Diluted Net income (loss) available for Class A common shareholders | $ 10,294 | $ (4,189) | $ 10,489 | $ (19,918) |
Weighted average shares outstanding: | ||||
Basic (in shares) | 124,048,999 | 106,809,987 | 124,012,683 | 106,569,892 |
Diluted (in shares) | 124,480,487 | 106,809,987 | 124,353,202 | 106,569,892 |
EARNINGS PER SHARE - Schedule o
EARNINGS PER SHARE - Schedule of Calculation of Basic and Diluted EPS (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Denominator: | |||||
Weighted average number of shares of Class A common stock outstanding (in shares) | 124,048,999 | 106,809,987 | 124,012,683 | 106,569,892 | |
Basic net income (loss) per share of Class A common stock (in dollars per share) | $ 0.08 | $ (0.04) | $ 0.08 | $ (0.19) | |
Denominator: | |||||
Weighted average number of shares of Class A common stock outstanding (in shares) | 124,048,999 | 106,809,987 | 124,012,683 | 106,569,892 | |
Diluted weighted average number of shares of Class A common stock outstanding (in shares) | 124,480,487 | 106,809,987 | 124,353,202 | 106,569,892 | |
Diluted net income (loss) per share of Class A common stock (in dollars per share) | $ 0.08 | $ (0.04) | $ 0.08 | $ (0.19) | |
Class A Common Stock | |||||
Numerator: | |||||
Net income (loss) attributable to Class A common shareholders | $ 10,294 | $ (4,189) | $ 10,489 | $ (19,918) | |
Denominator: | |||||
Weighted average number of shares of Class A common stock outstanding (in shares) | 124,048,999 | 106,809,987 | 124,012,683 | 106,569,892 | |
Basic net income (loss) per share of Class A common stock (in dollars per share) | $ 0.08 | $ (0.04) | $ 0.08 | $ (0.19) | |
Numerator: | |||||
Net income (loss) attributable to Class A common shareholders | $ 10,294 | $ (4,189) | $ 10,489 | $ (19,918) | |
Diluted net income (loss) attributable to Class A common shareholders | $ 10,294 | $ (4,189) | $ 10,489 | $ (19,918) | |
Denominator: | |||||
Weighted average number of shares of Class A common stock outstanding (in shares) | 124,048,999 | 106,809,987 | 124,012,683 | 106,569,892 | |
Diluted weighted average number of shares of Class A common stock outstanding (in shares) | 124,480,487 | 106,809,987 | 124,353,202 | 106,569,892 | |
Diluted net income (loss) per share of Class A common stock (in dollars per share) | $ 0.08 | $ (0.04) | $ 0.08 | $ (0.19) | |
Common stock, outstanding (in shares) | 126,241,917 | 126,241,917 | 126,378,715 | ||
Class A Common Stock | Restricted Stock | |||||
Denominator: | |||||
Incremental shares of stock based compensation (in shares) | 431,488 | 0 | 340,519 | 0 | |
Class A Common Stock | Stock Options | |||||
Denominator: | |||||
Incremental shares of stock based compensation (in shares) | 0 | 0 | 0 | 0 |
STOCK BASED AND OTHER COMPENS_3
STOCK BASED AND OTHER COMPENSATION PLANS - Stock Based Compensation Plans Summary (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock Based Compensation Expense | $ 3,524 | $ 2,712 | $ 8,801 | $ 16,738 |
Recognized equity based compensation expense | 5,374 | 3,273 | 11,123 | 15,401 |
Stock Options Exercised | 0 | 0 | 0 | 270 |
Bonus Expense | 1,850 | 0 | 2,300 | (30) |
Phantom Equity Investment Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Recognized equity based compensation expense | $ 0 | $ 561 | $ 22 | $ (1,577) |
STOCK BASED AND OTHER COMPENS_4
STOCK BASED AND OTHER COMPENSATION PLANS - Summary of Grants (Details) - Restricted Stock - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of Shares (in shares) | 747,713 | |||
Class A Common Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of Shares (in shares) | 0 | 0 | 747,713 | 1,466,337 |
Weighted Average Fair Value Per Share (in dollars per share) | $ 0 | $ 0 | $ 9.81 | $ 18.72 |
STOCK BASED AND OTHER COMPENS_5
STOCK BASED AND OTHER COMPENSATION PLANS - Nonvested Shares Outstanding (Details) - USD ($) $ in Millions | 6 Months Ended |
Jun. 30, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares [Roll Forward] | |
Unrecognized compensation cost | $ 18.6 |
Period of recognition for unrecognized compensation costs | 24 months 18 days |
Remaining vesting period | 31 months |
Restricted Stock | |
Number of Shares Nonvested Other than Options [Roll Forward] | |
Nonvested/Outstanding (in shares) | 2,800,824 |
Granted (in shares) | 747,713 |
Vested (in shares) | (982,998) |
Forfeited (in shares) | (327,143) |
Nonvested/Outstanding (in shares) | 2,238,396 |
Stock Options | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares [Roll Forward] | |
Nonvested/Outstanding (in shares) | 681,102 |
Granted (in shares) | 0 |
Exercised (in shares) | 0 |
Forfeited (in shares) | 0 |
Expired (in shares) | 0 |
Nonvested/Outstanding (in shares) | 681,102 |
Exercisable (in shares) | 681,102 |
STOCK BASED AND OTHER COMPENS_6
STOCK BASED AND OTHER COMPENSATION PLANS - Omnibus Incentive Plan (Details) $ in Millions | Feb. 18, 2021USD ($)shares | Jan. 01, 2021USD ($)shares | Jun. 30, 2021securityemployeeshares | Jun. 30, 2020shares | Jun. 30, 2021securityemployeeshares | Jun. 30, 2020shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Aggregate value of awards granted | $ | $ 7 | |||||
Restricted Stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Granted (in shares) | 747,713 | |||||
Forfeited (in shares) | 327,143 | |||||
Restricted Stock | Class A Common Stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Granted (in shares) | 0 | 0 | 747,713 | 1,466,337 | ||
Restricted Stock | 2014 Omnibus Incentive Plan | Class A Common Stock | Period 2 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Expected to vest (in shares) | 1,775 | |||||
Restricted Stock | 2014 Omnibus Incentive Plan | Class A Common Stock | Period 3 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Expected to vest (in shares) | 1,775 | |||||
Restricted Stock | 2014 Omnibus Incentive Plan | Class A Common Stock | Period 4 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Expected to vest (in shares) | 1,775 | |||||
Non-Management Grantee | Restricted Stock | 2014 Omnibus Incentive Plan | Class A Common Stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Granted (in shares) | 711,653 | |||||
Management Grantees | Restricted Stock | 2014 Omnibus Incentive Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of employees eligible for performance share waiver | employee | 42 | 42 | ||||
Number of consultants eligible for performance share waiver | security | 1 | 1 | ||||
Management Grantees | Restricted Stock | 2014 Omnibus Incentive Plan | Performance Based Vesting | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Minimum performance target percentage | 8.00% | |||||
Performance period | 3 years | |||||
Board of Directors | Restricted Stock | Class A Common Stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Granted (in shares) | 36,060 | |||||
Grant date fair value | $ | $ 0.4 | |||||
Vesting period | 1 year |
STOCK BASED AND OTHER COMPENS_7
STOCK BASED AND OTHER COMPENSATION PLANS - Ladder Capital Corp Deferred Compensation Plan (Details) - Deferred Compensation Plan 2014 $ in Millions | Dec. 31, 2020USD ($)shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Units outstanding (in shares) | 165,735 |
Units unvested (in shares) | 0 |
Total employee's contribution, net of forfeitures and payouts related to terminations | $ | $ 1.6 |
STOCK BASED AND OTHER COMPENS_8
STOCK BASED AND OTHER COMPENSATION PLANS Bonus Payments (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 16, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Accrued bonuses | $ 36,800,000 | |||||
Equity based compensation | $ 29,400,000 | |||||
Bonus expense | $ 5,374,000 | $ 3,273,000 | $ 11,123,000 | $ 15,401,000 | ||
Bonus Expense | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Bonus expense | $ 0 | 2,300,000 | $ 0 | |||
Compensation expense related to bonuses | $ 2,300,000 | |||||
Equity-based Compensation | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Accrued bonuses | $ 35,700,000 |
FAIR VALUE OF FINANCIAL INSTR_3
FAIR VALUE OF FINANCIAL INSTRUMENTS - Estimated Fair Values of Financial Instruments (Details) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2021USD ($) | Dec. 31, 2020USD ($) | Jan. 01, 2020USD ($) | |
Assets: | |||
Fair Value | $ 2,475,581 | $ 2,361,745 | |
Allowance for credit losses | (35,891) | (41,507) | $ (11,600) |
Liabilities: | |||
Fair Value | 4,023,389 | 4,239,855 | |
CMBS interest-only | |||
Assets: | |||
Allowance for credit losses | $ (20) | ||
Total mortgage loan receivables held for investment, net, at amortized cost | |||
Liabilities: | |||
Period of short interest rate reset risk | 30 days | ||
CLO debt | |||
Liabilities: | |||
Period of short interest rate reset risk | 30 days | ||
Recurring | |||
Assets: | |||
Fair Value | $ 707,569 | 1,046,869 | |
Recurring | CMBS | Internal Model Third Party Inputs Valuation Technique | |||
Assets: | |||
Outstanding Face Amount | 677,025 | 1,015,520 | |
Amortized Cost Basis/Purchase Price | 677,901 | 1,015,282 | |
Fair Value | $ 674,558 | $ 1,003,301 | |
Liabilities: | |||
Financial instruments, measurement input | 0.0165 | 0.0156 | |
Weighted average remaining maturity/duration | 2 years 25 days | 2 years 3 days | |
Recurring | CMBS interest-only | Internal Model Third Party Inputs Valuation Technique | |||
Assets: | |||
Outstanding Face Amount | $ 1,399,645 | $ 1,498,181 | |
Amortized Cost Basis/Purchase Price | 18,072 | 21,567 | |
Fair Value | $ 18,820 | $ 22,213 | |
Liabilities: | |||
Financial instruments, measurement input | 0.0200 | 0.0353 | |
Weighted average remaining maturity/duration | 2 years 3 days | 2 years 2 months 8 days | |
Recurring | GNMA interest-only | Internal Model Third Party Inputs Valuation Technique | |||
Assets: | |||
Outstanding Face Amount | $ 63,305 | $ 75,350 | |
Amortized Cost Basis/Purchase Price | 635 | 868 | |
Fair Value | $ 699 | $ 1,001 | |
Liabilities: | |||
Financial instruments, measurement input | 0.0479 | 0.0506 | |
Weighted average remaining maturity/duration | 3 years 4 months 20 days | 3 years 7 months 2 days | |
Recurring | Agency securities | Internal Model Third Party Inputs Valuation Technique | |||
Assets: | |||
Outstanding Face Amount | $ 568 | $ 586 | |
Amortized Cost Basis/Purchase Price | 572 | 593 | |
Fair Value | $ 580 | $ 605 | |
Liabilities: | |||
Financial instruments, measurement input | 0.0160 | 0.0164 | |
Weighted average remaining maturity/duration | 11 months 19 days | 1 year 3 months 3 days | |
Recurring | GNMA permanent securities | Internal Model Third Party Inputs Valuation Technique | |||
Assets: | |||
Outstanding Face Amount | $ 24,040 | $ 30,254 | |
Amortized Cost Basis/Purchase Price | 24,171 | 30,340 | |
Fair Value | $ 24,547 | $ 31,199 | |
Liabilities: | |||
Financial instruments, measurement input | 0.0354 | 0.0349 | |
Weighted average remaining maturity/duration | 1 year 2 months 4 days | 1 year 11 months 23 days | |
Recurring | Provision for current expected credit reserves/losses | |||
Assets: | |||
Allowance for credit losses | $ (20) | $ (41,507) | |
Recurring | Provision for current expected credit reserves/losses | Internal Model Third Party Inputs Valuation Technique | |||
Assets: | |||
Allowance for credit losses | (20) | ||
Recurring | Total mortgage loan receivables held for investment, net, at amortized cost | |||
Assets: | |||
Allowance for credit losses | (35,891) | ||
Recurring | Total mortgage loan receivables held for investment, net, at amortized cost | Discounted Cash Flow | |||
Assets: | |||
Outstanding Face Amount | 2,548,013 | 2,365,204 | |
Amortized Cost Basis/Purchase Price | 2,531,048 | 2,354,059 | |
Fair Value | 2,424,602 | $ 2,328,441 | |
Allowance for credit losses | $ (35,891) | ||
Liabilities: | |||
Financial instruments, measurement input | 0.0580 | 0.0667 | |
Weighted average remaining maturity/duration | 1 year 9 months 21 days | 1 year 25 days | |
Recurring | Mortgage loan receivables held for sale | Internal Model Third Party Inputs Valuation Technique | |||
Assets: | |||
Outstanding Face Amount | $ 59,198 | $ 30,478 | |
Amortized Cost Basis/Purchase Price | 59,182 | 30,518 | |
Fair Value | $ 62,295 | $ 32,082 | |
Liabilities: | |||
Financial instruments, measurement input | 0.0425 | 0.0405 | |
Weighted average remaining maturity/duration | 9 years 9 months 21 days | 9 years 2 months 4 days | |
Recurring | FHLB stock | FHLB stock | |||
Assets: | |||
Outstanding Face Amount | $ 12,960 | $ 31,000 | |
Amortized Cost Basis/Purchase Price | 12,960 | 31,000 | |
Fair Value | $ 12,960 | $ 31,000 | |
Liabilities: | |||
Financial instruments, measurement input | 0.0300 | 0.0300 | |
Recurring | Nonhedge derivatives | Counterparty Quotations Valuation Technique | |||
Assets: | |||
Nonhedge derivative assets | $ 65,600 | ||
Fair Value | $ 299 | ||
Liabilities: | |||
Weighted average remaining maturity/duration | 3 months | ||
Recurring | Repurchase agreements - short-term | Discounted Cash Flow | |||
Liabilities: | |||
Outstanding Face Amount | $ 390,217 | $ 708,833 | |
Amortized Cost Basis/Purchase Price | 390,217 | 708,833 | |
Fair Value | $ 390,217 | $ 708,833 | |
Financial instruments, measurement input | 0.0098 | 0.0116 | |
Weighted average remaining maturity/duration | 2 months 23 days | 4 months 2 days | |
Recurring | Repurchase agreements - long-term | Discounted Cash Flow | |||
Liabilities: | |||
Outstanding Face Amount | $ 135,483 | $ 112,004 | |
Amortized Cost Basis/Purchase Price | 135,483 | 112,004 | |
Fair Value | $ 135,483 | $ 112,004 | |
Financial instruments, measurement input | 0.0189 | 0.0947 | |
Weighted average remaining maturity/duration | 1 year 5 months 23 days | 2 years 2 months 15 days | |
Recurring | Revolving Credit Facility | Discounted Cash Flow | |||
Liabilities: | |||
Outstanding Face Amount | $ 266,430 | ||
Amortized Cost Basis/Purchase Price | 266,430 | ||
Fair Value | $ 266,430 | ||
Financial instruments, measurement input | 0.0315 | ||
Weighted average remaining maturity/duration | 25 days | ||
Recurring | Mortgage loan financing | Discounted Cash Flow | |||
Liabilities: | |||
Outstanding Face Amount | $ 742,410 | $ 761,793 | |
Amortized Cost Basis/Purchase Price | 745,971 | 766,064 | |
Fair Value | $ 764,159 | $ 786,405 | |
Financial instruments, measurement input | 0.0484 | 0.0484 | |
Weighted average remaining maturity/duration | 3 years 8 months 12 days | 4 years 14 days | |
Recurring | Secured Financing Facility | Discounted Cash Flow | |||
Liabilities: | |||
Outstanding Face Amount | $ 152,143 | $ 192,646 | |
Amortized Cost Basis/Purchase Price | 152,143 | 192,646 | |
Fair Value | $ 152,143 | $ 192,646 | |
Financial instruments, measurement input | 0.1075 | 0.1075 | |
Weighted average remaining maturity/duration | 1 year 10 months 6 days | 2 years 4 months 6 days | |
Recurring | CLO debt | Discounted Cash Flow | |||
Liabilities: | |||
Outstanding Face Amount | $ 168,843 | $ 276,516 | |
Amortized Cost Basis/Purchase Price | 168,843 | 276,516 | |
Fair Value | $ 168,843 | $ 276,516 | |
Financial instruments, measurement input | 0.0550 | 0.0550 | |
Weighted average remaining maturity/duration | 2 years 10 months 17 days | 3 years 4 months 17 days | |
Recurring | Borrowings from the FHLB | Discounted Cash Flow | |||
Liabilities: | |||
Outstanding Face Amount | $ 288,000 | $ 288,000 | |
Amortized Cost Basis/Purchase Price | 288,000 | 288,000 | |
Fair Value | $ 288,712 | $ 289,091 | |
Financial instruments, measurement input | 0.0107 | 0.0112 | |
Weighted average remaining maturity/duration | 2 years 3 months 3 days | 2 years 9 months 3 days | |
Recurring | Senior unsecured notes | Broker Quotations Pricing Services Valuation Technique | |||
Liabilities: | |||
Outstanding Face Amount | $ 2,115,644 | $ 1,612,299 | |
Amortized Cost Basis/Purchase Price | 2,095,059 | 1,599,371 | |
Fair Value | $ 2,123,832 | $ 1,607,930 | |
Financial instruments, measurement input | 0.0481 | 0.0490 | |
Weighted average remaining maturity/duration | 4 years 2 months 19 days | 3 years 10 months 20 days | |
Recurring | Nonhedge derivatives | Counterparty Quotations Valuation Technique | |||
Liabilities: | |||
Fair Value | $ 368 | ||
Nonhedge derivatives | $ 202,571 | ||
Weighted average remaining maturity/duration | 3 months |
FAIR VALUE OF FINANCIAL INSTR_4
FAIR VALUE OF FINANCIAL INSTRUMENTS - Summary of Financial Assets and Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 | Jan. 01, 2020 |
Assets: | |||
Fair value of assets | $ 2,475,581 | $ 2,361,745 | |
Allowance for current expected credit losses | (35,891) | (41,507) | $ (11,600) |
Liabilities: | |||
Fair value of liabilities | 4,023,389 | 4,239,855 | |
CMBS interest-only | |||
Assets: | |||
Allowance for current expected credit losses | (20) | ||
Repurchase agreements - short-term | |||
Liabilities: | |||
Outstanding Face Amount | 390,217 | 708,833 | |
Fair value of liabilities | 390,217 | 708,833 | |
Repurchase agreements - long-term | |||
Liabilities: | |||
Outstanding Face Amount | 135,483 | 112,004 | |
Fair value of liabilities | 135,483 | 112,004 | |
Revolving Credit Facility | |||
Liabilities: | |||
Outstanding Face Amount | 0 | 266,430 | |
Fair value of liabilities | 0 | 266,430 | |
Mortgage loan financing | |||
Liabilities: | |||
Outstanding Face Amount | 742,410 | 761,793 | |
Fair value of liabilities | 764,159 | 786,405 | |
Secured Financing Facility | |||
Liabilities: | |||
Outstanding Face Amount | 152,143 | 192,646 | |
Fair value of liabilities | 152,143 | 192,646 | |
CLO debt | |||
Liabilities: | |||
Outstanding Face Amount | 168,843 | 276,516 | |
Fair value of liabilities | 168,843 | 276,516 | |
Borrowings from the FHLB | |||
Liabilities: | |||
Outstanding Face Amount | 288,000 | 288,000 | |
Fair value of liabilities | 288,712 | 289,091 | |
Senior unsecured notes | |||
Liabilities: | |||
Outstanding Face Amount | 2,115,644 | 1,612,299 | |
Fair value of liabilities | 2,123,832 | 1,607,930 | |
CMBS | |||
Assets: | |||
Outstanding Face Amount | 11,467 | 11,523 | |
Fair value of assets | 11,030 | 11,074 | |
CMBS interest-only | |||
Assets: | |||
Outstanding Face Amount | 10,510 | 10,566 | |
Fair value of assets | 605 | 675 | |
Allowance for current expected credit losses | (20) | ||
Total mortgage loan receivables held for investment, net, at amortized cost | |||
Assets: | |||
Outstanding Face Amount | 2,548,013 | 2,365,204 | |
Fair value of assets | 2,424,602 | 2,328,441 | |
Mortgage loan receivables held for sale | |||
Assets: | |||
Outstanding Face Amount | 59,198 | 30,478 | |
Fair value of assets | 62,295 | 32,082 | |
FHLB stock | |||
Assets: | |||
Outstanding Face Amount | 12,960 | 31,000 | |
Fair value of assets | 12,960 | 31,000 | |
Level 1 | |||
Assets: | |||
Fair value of assets | 0 | 0 | |
Allowance for current expected credit losses | 0 | 0 | |
Liabilities: | |||
Fair value of liabilities | 0 | 0 | |
Level 1 | CMBS interest-only | |||
Assets: | |||
Allowance for current expected credit losses | 0 | ||
Level 1 | Repurchase agreements - short-term | |||
Liabilities: | |||
Fair value of liabilities | 0 | 0 | |
Level 1 | Repurchase agreements - long-term | |||
Liabilities: | |||
Fair value of liabilities | 0 | 0 | |
Level 1 | Revolving Credit Facility | |||
Liabilities: | |||
Fair value of liabilities | 0 | 0 | |
Level 1 | Mortgage loan financing | |||
Liabilities: | |||
Fair value of liabilities | 0 | 0 | |
Level 1 | Secured Financing Facility | |||
Liabilities: | |||
Fair value of liabilities | 0 | 0 | |
Level 1 | CLO debt | |||
Liabilities: | |||
Fair value of liabilities | 0 | 0 | |
Level 1 | Borrowings from the FHLB | |||
Liabilities: | |||
Fair value of liabilities | 0 | 0 | |
Level 1 | Senior unsecured notes | |||
Liabilities: | |||
Fair value of liabilities | 0 | 0 | |
Level 1 | CMBS | |||
Assets: | |||
Fair value of assets | 0 | 0 | |
Level 1 | CMBS interest-only | |||
Assets: | |||
Fair value of assets | 0 | 0 | |
Allowance for current expected credit losses | 0 | ||
Level 1 | Total mortgage loan receivables held for investment, net, at amortized cost | |||
Assets: | |||
Fair value of assets | 0 | 0 | |
Level 1 | Mortgage loan receivables held for sale | |||
Assets: | |||
Fair value of assets | 0 | 0 | |
Level 1 | FHLB stock | |||
Assets: | |||
Fair value of assets | 0 | 0 | |
Level 2 | |||
Assets: | |||
Fair value of assets | 0 | 0 | |
Allowance for current expected credit losses | 0 | 0 | |
Liabilities: | |||
Fair value of liabilities | 0 | 0 | |
Level 2 | CMBS interest-only | |||
Assets: | |||
Allowance for current expected credit losses | 0 | ||
Level 2 | Repurchase agreements - short-term | |||
Liabilities: | |||
Fair value of liabilities | 0 | 0 | |
Level 2 | Repurchase agreements - long-term | |||
Liabilities: | |||
Fair value of liabilities | 0 | 0 | |
Level 2 | Revolving Credit Facility | |||
Liabilities: | |||
Fair value of liabilities | 0 | 0 | |
Level 2 | Mortgage loan financing | |||
Liabilities: | |||
Fair value of liabilities | 0 | 0 | |
Level 2 | Secured Financing Facility | |||
Liabilities: | |||
Fair value of liabilities | 0 | 0 | |
Level 2 | CLO debt | |||
Liabilities: | |||
Fair value of liabilities | 0 | 0 | |
Level 2 | Borrowings from the FHLB | |||
Liabilities: | |||
Fair value of liabilities | 0 | 0 | |
Level 2 | Senior unsecured notes | |||
Liabilities: | |||
Fair value of liabilities | 0 | 0 | |
Level 2 | CMBS | |||
Assets: | |||
Fair value of assets | 0 | 0 | |
Level 2 | CMBS interest-only | |||
Assets: | |||
Fair value of assets | 0 | 0 | |
Allowance for current expected credit losses | 0 | ||
Level 2 | Total mortgage loan receivables held for investment, net, at amortized cost | |||
Assets: | |||
Fair value of assets | 0 | 0 | |
Level 2 | Mortgage loan receivables held for sale | |||
Assets: | |||
Fair value of assets | 0 | 0 | |
Level 2 | FHLB stock | |||
Assets: | |||
Fair value of assets | 0 | 0 | |
Level 3 | |||
Assets: | |||
Fair value of assets | 2,475,581 | 2,361,745 | |
Allowance for current expected credit losses | (35,891) | (41,507) | |
Liabilities: | |||
Fair value of liabilities | 4,023,389 | 4,239,855 | |
Level 3 | CMBS interest-only | |||
Assets: | |||
Allowance for current expected credit losses | (20) | ||
Level 3 | Repurchase agreements - short-term | |||
Liabilities: | |||
Fair value of liabilities | 390,217 | 708,833 | |
Level 3 | Repurchase agreements - long-term | |||
Liabilities: | |||
Fair value of liabilities | 135,483 | 112,004 | |
Level 3 | Revolving Credit Facility | |||
Liabilities: | |||
Fair value of liabilities | 0 | 266,430 | |
Level 3 | Mortgage loan financing | |||
Liabilities: | |||
Fair value of liabilities | 764,159 | 786,405 | |
Level 3 | Secured Financing Facility | |||
Liabilities: | |||
Fair value of liabilities | 152,143 | 192,646 | |
Level 3 | CLO debt | |||
Liabilities: | |||
Fair value of liabilities | 168,843 | 276,516 | |
Level 3 | Borrowings from the FHLB | |||
Liabilities: | |||
Fair value of liabilities | 288,712 | 289,091 | |
Level 3 | Senior unsecured notes | |||
Liabilities: | |||
Fair value of liabilities | 2,123,832 | 1,607,930 | |
Level 3 | CMBS | |||
Assets: | |||
Fair value of assets | 11,030 | 11,074 | |
Level 3 | CMBS interest-only | |||
Assets: | |||
Fair value of assets | 605 | 675 | |
Allowance for current expected credit losses | (20) | ||
Level 3 | Total mortgage loan receivables held for investment, net, at amortized cost | |||
Assets: | |||
Fair value of assets | 2,424,602 | 2,328,441 | |
Level 3 | Mortgage loan receivables held for sale | |||
Assets: | |||
Fair value of assets | 62,295 | 32,082 | |
Level 3 | FHLB stock | |||
Assets: | |||
Fair value of assets | 12,960 | 31,000 | |
Recurring | |||
Assets: | |||
Fair value of assets | 707,569 | 1,046,869 | |
Recurring | Nonhedge derivatives | |||
Assets: | |||
Nonhedge derivatives | 202,571 | ||
Liabilities: | |||
Fair value of liabilities | 368 | ||
Recurring | CMBS | |||
Assets: | |||
Outstanding Face Amount | 665,558 | 1,003,998 | |
Fair value of assets | 663,528 | 992,227 | |
Recurring | CMBS interest-only | |||
Assets: | |||
Outstanding Face Amount | 1,389,135 | 1,487,616 | |
Fair value of assets | 18,215 | 21,538 | |
Recurring | GNMA interest-only | |||
Assets: | |||
Outstanding Face Amount | 63,305 | 75,350 | |
Fair value of assets | 699 | 1,001 | |
Recurring | Agency securities | |||
Assets: | |||
Outstanding Face Amount | 568 | 586 | |
Fair value of assets | 580 | 605 | |
Recurring | GNMA permanent securities | |||
Assets: | |||
Outstanding Face Amount | 24,040 | 30,254 | |
Fair value of assets | 24,547 | 31,199 | |
Recurring | Equity securities | |||
Assets: | |||
Fair value of assets | 0 | ||
Recurring | Nonhedge derivatives | |||
Assets: | |||
Fair value of assets | 299 | ||
Nonhedge derivative assets | 65,600 | ||
Recurring | Level 1 | |||
Assets: | |||
Fair value of assets | 0 | 0 | |
Recurring | Level 1 | Nonhedge derivatives | |||
Liabilities: | |||
Fair value of liabilities | 0 | ||
Recurring | Level 1 | CMBS | |||
Assets: | |||
Fair value of assets | 0 | 0 | |
Recurring | Level 1 | CMBS interest-only | |||
Assets: | |||
Fair value of assets | 0 | 0 | |
Recurring | Level 1 | GNMA interest-only | |||
Assets: | |||
Fair value of assets | 0 | 0 | |
Recurring | Level 1 | Agency securities | |||
Assets: | |||
Fair value of assets | 0 | 0 | |
Recurring | Level 1 | GNMA permanent securities | |||
Assets: | |||
Fair value of assets | 0 | 0 | |
Recurring | Level 1 | Equity securities | |||
Assets: | |||
Fair value of assets | 0 | ||
Recurring | Level 1 | Nonhedge derivatives | |||
Assets: | |||
Fair value of assets | 0 | ||
Recurring | Level 2 | |||
Assets: | |||
Fair value of assets | 0 | 299 | |
Recurring | Level 2 | Nonhedge derivatives | |||
Liabilities: | |||
Fair value of liabilities | 368 | ||
Recurring | Level 2 | CMBS | |||
Assets: | |||
Fair value of assets | 0 | 0 | |
Recurring | Level 2 | CMBS interest-only | |||
Assets: | |||
Fair value of assets | 0 | 0 | |
Recurring | Level 2 | GNMA interest-only | |||
Assets: | |||
Fair value of assets | 0 | 0 | |
Recurring | Level 2 | Agency securities | |||
Assets: | |||
Fair value of assets | 0 | 0 | |
Recurring | Level 2 | GNMA permanent securities | |||
Assets: | |||
Fair value of assets | 0 | 0 | |
Recurring | Level 2 | Equity securities | |||
Assets: | |||
Fair value of assets | 0 | ||
Recurring | Level 2 | Nonhedge derivatives | |||
Assets: | |||
Fair value of assets | 299 | ||
Recurring | Level 3 | |||
Assets: | |||
Fair value of assets | 707,569 | 1,046,570 | |
Recurring | Level 3 | Nonhedge derivatives | |||
Liabilities: | |||
Fair value of liabilities | 0 | ||
Recurring | Level 3 | CMBS | |||
Assets: | |||
Fair value of assets | 663,528 | 992,227 | |
Recurring | Level 3 | CMBS interest-only | |||
Assets: | |||
Fair value of assets | 18,215 | 21,538 | |
Recurring | Level 3 | GNMA interest-only | |||
Assets: | |||
Fair value of assets | 699 | 1,001 | |
Recurring | Level 3 | Agency securities | |||
Assets: | |||
Fair value of assets | 580 | 605 | |
Recurring | Level 3 | GNMA permanent securities | |||
Assets: | |||
Fair value of assets | $ 24,547 | 31,199 | |
Recurring | Level 3 | Equity securities | |||
Assets: | |||
Fair value of assets | 0 | ||
Recurring | Level 3 | Nonhedge derivatives | |||
Assets: | |||
Fair value of assets | $ 0 |
FAIR VALUE OF FINANCIAL INSTR_5
FAIR VALUE OF FINANCIAL INSTRUMENTS - Schedule of Changes in Level 3 (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | $ 1,046,569 | $ 1,695,913 |
Transfer from level 2 | 0 | 0 |
Purchases | 101,358 | 437,536 |
Sales | (339,238) | (517,535) |
Paydowns/maturities | (106,197) | (52,271) |
Amortization of premium/discount | (3,702) | (4,278) |
Unrealized gain/(loss) | 8,184 | (51,709) |
Realized gain/(loss) on sale | 595 | (12,773) |
Ending balance | $ 707,569 | $ 1,494,883 |
FAIR VALUE OF FINANCIAL INSTR_6
FAIR VALUE OF FINANCIAL INSTRUMENTS - Schedule of Quantitative Information (Details) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021USD ($) | Dec. 31, 2020USD ($) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Carrying Value | $ 719,203 | $ 1,058,298 |
CMBS | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Carrying Value | 674,558 | 1,003,301 |
CMBS interest-only | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Carrying Value | 18,820 | 22,213 |
GNMA interest-only | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Carrying Value | 699 | 1,000 |
Agency securities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Carrying Value | 579 | 605 |
GNMA permanent securities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Carrying Value | $ 24,547 | $ 31,199 |
Level 3 | CMBS | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Duration | 0 years | 0 years |
Level 3 | CMBS | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Duration | 1 year 11 months 4 days | 2 years 8 months 4 days |
Level 3 | CMBS | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Duration | 8 years 9 months 14 days | 5 years 9 months 25 days |
Level 3 | CMBS interest-only | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Duration | 1 month 24 days | 1 month 13 days |
Level 3 | CMBS interest-only | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Duration | 1 year 11 months 4 days | 2 years 2 months 23 days |
Level 3 | CMBS interest-only | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Duration | 2 years 9 months 25 days | 3 years 1 month 24 days |
Level 3 | GNMA interest-only | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Duration | 0 years | 0 years |
Level 3 | GNMA interest-only | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Duration | 2 years 6 months 21 days | 2 years 9 months 18 days |
Level 3 | GNMA interest-only | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Duration | 5 years 9 months 21 days | 6 years 9 months 14 days |
Level 3 | Agency securities | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Duration | 0 years | 0 years |
Level 3 | Agency securities | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Duration | 10 months 2 days | 1 year 2 months 23 days |
Level 3 | Agency securities | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Duration | 11 months 15 days | 1 year 5 months 8 days |
Level 3 | GNMA permanent securities | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Duration | 1 year 9 months 18 days | 1 year 6 months 25 days |
Level 3 | GNMA permanent securities | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Duration | 3 years 4 months 13 days | 9 years 8 months 26 days |
Level 3 | GNMA permanent securities | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Duration | 3 years 5 months 1 day | 14 years 6 months 25 days |
Level 3 | Yield | CMBS | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | (0.0013) | 0 |
Level 3 | Yield | CMBS | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 0.0188 | 0.0209 |
Level 3 | Yield | CMBS | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 0.1147 | 0.2385 |
Level 3 | Yield | CMBS interest-only | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 0.0050 | 0.0056 |
Level 3 | Yield | CMBS interest-only | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 0.0294 | 0.0251 |
Level 3 | Yield | CMBS interest-only | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 0.0509 | 0.0994 |
Level 3 | Yield | GNMA interest-only | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 0 | 0 |
Level 3 | Yield | GNMA interest-only | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 0.0936 | 0.0793 |
Level 3 | Yield | GNMA interest-only | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 0.4060 | 0.3582 |
Level 3 | Yield | Agency securities | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 0.0058 | 0.0044 |
Level 3 | Yield | Agency securities | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 0.0065 | 0.1131 |
Level 3 | Yield | Agency securities | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 0.0116 | 0.7200 |
Level 3 | Yield | GNMA permanent securities | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 0.0267 | 0 |
Level 3 | Yield | GNMA permanent securities | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 0.0348 | 0.0299 |
Level 3 | Yield | GNMA permanent securities | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 0.0379 | 0.0347 |
Level 3 | Prepayment speed | CMBS interest-only | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 100 | 100 |
Level 3 | Prepayment speed | CMBS interest-only | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 100 | 100 |
Level 3 | Prepayment speed | CMBS interest-only | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 100 | 100 |
Level 3 | Prepayment speed | GNMA interest-only | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 5 | 5 |
Level 3 | Prepayment speed | GNMA interest-only | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 18.60 | 17.78 |
Level 3 | Prepayment speed | GNMA interest-only | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 35 | 35 |
Level 3 | Internal Model Third Party Inputs Valuation Technique | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Carrying Value | $ 707,569 | $ 1,046,568 |
Recurring | Internal Model Third Party Inputs Valuation Technique | CMBS | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 0.0165 | 0.0156 |
Duration | 2 years 25 days | 2 years 3 days |
Recurring | Internal Model Third Party Inputs Valuation Technique | CMBS interest-only | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 0.0200 | 0.0353 |
Duration | 2 years 3 days | 2 years 2 months 8 days |
Recurring | Internal Model Third Party Inputs Valuation Technique | GNMA interest-only | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 0.0479 | 0.0506 |
Duration | 3 years 4 months 20 days | 3 years 7 months 2 days |
Recurring | Internal Model Third Party Inputs Valuation Technique | Agency securities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 0.0160 | 0.0164 |
Duration | 11 months 19 days | 1 year 3 months 3 days |
Recurring | Internal Model Third Party Inputs Valuation Technique | GNMA permanent securities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 0.0354 | 0.0349 |
Duration | 1 year 2 months 4 days | 1 year 11 months 23 days |
Recurring | Level 3 | Internal Model Third Party Inputs Valuation Technique | CMBS | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Carrying Value | $ 663,528 | $ 992,226 |
Recurring | Level 3 | Internal Model Third Party Inputs Valuation Technique | CMBS interest-only | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Carrying Value | 18,215 | 21,537 |
Recurring | Level 3 | Internal Model Third Party Inputs Valuation Technique | GNMA interest-only | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Carrying Value | 699 | 1,001 |
Recurring | Level 3 | Internal Model Third Party Inputs Valuation Technique | Agency securities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Carrying Value | 580 | 605 |
Recurring | Level 3 | Internal Model Third Party Inputs Valuation Technique | GNMA permanent securities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Carrying Value | $ 24,547 | $ 31,199 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Income Tax Contingency [Line Items] | |||||
Income tax expense (benefit) | $ 0.9 | $ (1.6) | $ (1.1) | $ (15) | |
Deferred income tax expense (benefit) | (1.2) | $ (2.1) | 0 | $ 9.9 | |
Deferred tax asset related to capital losses | 4.9 | 4.9 | |||
Deferred tax assets related to interest expense limitation | 1.5 | 1.5 | |||
Other assets | |||||
Income Tax Contingency [Line Items] | |||||
Deferred tax liabilities | $ (2) | $ (2) | $ (2) |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Jan. 01, 2019 | |
Unfunded Loan Commitments | ||||||
Operating lease liability | $ 0.8 | $ 0.8 | ||||
Operating lease, right-of-use asset | $ 0.8 | $ 0.8 | ||||
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Other liabilities | Other liabilities | ||||
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other assets | Other assets | ||||
Tenant reimbursements | $ 1.1 | $ 1.1 | $ 2.2 | $ 2.3 | ||
Provision for loan losses | ||||||
Unfunded Loan Commitments | ||||||
Unfunded commitments of mortgage loan receivables held for investment | $ 245.1 | $ 245.1 | $ 148.8 | |||
Length of additional mortgage loan financing | 3 years | |||||
Unfunded commitments of mortgage loan receivables held for investment, additional funds | 59.00% | |||||
Accounting Standards Update 2016-02 | ||||||
Unfunded Loan Commitments | ||||||
Operating lease liability | $ 3.5 | |||||
Operating lease, right-of-use asset | $ 3.3 |
SEGMENT REPORTING - Additional
SEGMENT REPORTING - Additional Information (Details) | 6 Months Ended |
Jun. 30, 2021segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
SEGMENT REPORTING - Schedule of
SEGMENT REPORTING - Schedule of Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |||
Income Statement [Abstract] | |||||||
Interest income | $ 37,577 | $ 62,096 | $ 76,865 | $ 134,686 | |||
Interest expense | (45,226) | (68,425) | (91,199) | (119,827) | |||
Net interest income (expense) | (7,649) | (6,329) | (14,334) | 14,859 | |||
(Provision) benefit for loan losses | 335 | 729 | 4,586 | (25,852) | |||
Net interest income (expense) after provision for (release of) loan losses | (7,314) | (5,600) | (9,748) | (10,993) | |||
Operating lease income | 26,558 | 23,773 | 50,718 | 50,101 | |||
Sale of loans, net | 3,392 | (744) | 3,392 | 261 | |||
Realized gain (loss) on securities | 15 | (14,798) | 594 | (11,787) | |||
Unrealized gain (loss) on equity securities | 0 | 401 | 0 | (132) | |||
Unrealized gain (loss) on Agency interest-only securities | (48) | 98 | (68) | 174 | |||
Realized gain (loss) on sale of real estate, net | 19,389 | (1) | 19,389 | 10,528 | |||
Impairment of real estate | 0 | 0 | |||||
Fee and other income | 2,451 | 3,505 | 5,735 | 5,024 | |||
Net result from derivative transactions | (3,844) | (813) | 927 | (16,248) | |||
Earnings (loss) from investment in unconsolidated joint ventures | 237 | 471 | 673 | 912 | |||
Gain (loss) on extinguishment/defeasance of debt | 0 | 19,017 | 0 | 21,077 | |||
Total other income (loss) | 48,150 | 30,909 | 81,360 | 59,910 | |||
Salaries and employee benefits | (8,477) | (7,001) | (18,011) | (24,023) | |||
Operating expenses | (4,216) | (6,224) | (8,457) | (12,018) | |||
Real estate operating expenses | (6,345) | (6,034) | (12,555) | (13,981) | |||
Fee expense | (2,195) | (1,977) | (3,793) | (3,415) | |||
Depreciation and amortization | (9,464) | (9,816) | (19,000) | (19,825) | |||
Total costs and expenses | (30,697) | (31,052) | (61,816) | (73,262) | |||
Income tax (expense) benefit | 318 | 550 | 1,096 | 5,091 | |||
Net income (loss) | 10,457 | (5,193) | 10,892 | (19,254) | |||
Total assets | [1] | 5,616,809 | 5,616,809 | $ 5,881,229 | |||
Investment in unconsolidated joint ventures | [1] | 37,819 | 37,819 | 46,253 | |||
Investment in FHLB stock | 13,000 | 13,000 | 31,000 | [1] | |||
Operating Segment | |||||||
Income Statement [Abstract] | |||||||
Investment in unconsolidated joint ventures | 37,800 | 37,800 | 46,300 | ||||
Operating Segment | Loans | |||||||
Income Statement [Abstract] | |||||||
Interest income | 34,253 | 53,641 | 70,145 | 112,546 | |||
Interest expense | (13,681) | (11,732) | (27,757) | (16,602) | |||
Net interest income (expense) | 20,572 | 41,909 | 42,388 | 95,944 | |||
(Provision) benefit for loan losses | 335 | 726 | 4,586 | (25,855) | |||
Net interest income (expense) after provision for (release of) loan losses | 20,907 | 42,635 | 46,974 | 70,089 | |||
Operating lease income | 0 | 0 | 0 | 0 | |||
Sale of loans, net | 3,392 | (744) | 3,392 | 261 | |||
Realized gain (loss) on securities | 0 | 0 | 0 | 0 | |||
Unrealized gain (loss) on equity securities | 0 | 0 | |||||
Unrealized gain (loss) on Agency interest-only securities | 0 | 0 | 0 | 0 | |||
Realized gain (loss) on sale of real estate, net | 0 | 0 | 0 | 0 | |||
Impairment of real estate | 0 | 0 | |||||
Fee and other income | 2,295 | 2,429 | 5,264 | 3,854 | |||
Net result from derivative transactions | (2,792) | (588) | 251 | (11,939) | |||
Earnings (loss) from investment in unconsolidated joint ventures | 78 | 0 | 218 | 0 | |||
Gain (loss) on extinguishment/defeasance of debt | 0 | 0 | |||||
Total other income (loss) | 2,973 | 1,097 | 9,125 | (7,824) | |||
Salaries and employee benefits | 0 | 0 | 0 | 0 | |||
Operating expenses | 29 | 0 | 38 | 0 | |||
Real estate operating expenses | 0 | 0 | 0 | 0 | |||
Fee expense | (944) | (1,474) | (2,252) | (2,664) | |||
Depreciation and amortization | 0 | 0 | 0 | 0 | |||
Total costs and expenses | (915) | (1,474) | (2,214) | (2,664) | |||
Income tax (expense) benefit | 0 | 0 | 0 | 0 | |||
Net income (loss) | 22,965 | 42,258 | 53,885 | 59,601 | |||
Total assets | 2,554,339 | 2,554,339 | 2,343,070 | ||||
Operating Segment | Securities | |||||||
Income Statement [Abstract] | |||||||
Interest income | 3,216 | 8,177 | 6,450 | 21,040 | |||
Interest expense | (556) | (7,795) | (1,388) | (14,554) | |||
Net interest income (expense) | 2,660 | 382 | 5,061 | 6,486 | |||
(Provision) benefit for loan losses | 3 | 0 | 3 | ||||
Net interest income (expense) after provision for (release of) loan losses | 2,660 | 385 | 5,061 | 6,489 | |||
Operating lease income | 0 | 0 | 0 | 0 | |||
Sale of loans, net | 0 | 0 | 0 | 0 | |||
Realized gain (loss) on securities | 15 | (14,798) | 594 | (11,787) | |||
Unrealized gain (loss) on equity securities | 401 | (132) | |||||
Unrealized gain (loss) on Agency interest-only securities | (48) | 98 | (68) | 174 | |||
Realized gain (loss) on sale of real estate, net | 0 | 0 | 0 | ||||
Impairment of real estate | 0 | 0 | |||||
Fee and other income | 0 | 2 | 0 | 403 | |||
Net result from derivative transactions | (1,052) | (225) | 676 | (4,309) | |||
Earnings (loss) from investment in unconsolidated joint ventures | 0 | 0 | 0 | 0 | |||
Gain (loss) on extinguishment/defeasance of debt | 0 | 0 | |||||
Total other income (loss) | (1,085) | (14,522) | 1,202 | (15,651) | |||
Salaries and employee benefits | 0 | 0 | 0 | 0 | |||
Operating expenses | 0 | 0 | 0 | 0 | |||
Real estate operating expenses | 0 | 0 | 0 | 0 | |||
Fee expense | (61) | (61) | (111) | (133) | |||
Depreciation and amortization | 0 | 0 | 0 | 0 | |||
Total costs and expenses | (61) | (61) | (111) | (133) | |||
Income tax (expense) benefit | 0 | 0 | 0 | 0 | |||
Net income (loss) | 1,514 | (14,198) | 6,152 | (9,295) | |||
Total assets | 719,183 | 719,183 | 1,058,298 | ||||
Operating Segment | Real Estate | |||||||
Income Statement [Abstract] | |||||||
Interest income | 0 | 2 | 0 | 10 | |||
Interest expense | (9,944) | (9,758) | (18,729) | (19,993) | |||
Net interest income (expense) | (9,944) | (9,756) | (18,729) | (19,983) | |||
(Provision) benefit for loan losses | 0 | 0 | 0 | 0 | |||
Net interest income (expense) after provision for (release of) loan losses | (9,944) | (9,756) | (18,729) | (19,983) | |||
Operating lease income | 26,558 | 23,773 | 50,718 | 50,101 | |||
Sale of loans, net | 0 | 0 | 0 | 0 | |||
Realized gain (loss) on securities | 0 | 0 | 0 | 0 | |||
Unrealized gain (loss) on equity securities | 0 | 0 | |||||
Unrealized gain (loss) on Agency interest-only securities | 0 | 0 | 0 | 0 | |||
Realized gain (loss) on sale of real estate, net | 19,389 | (1) | 19,389 | 10,528 | |||
Impairment of real estate | 0 | 0 | |||||
Fee and other income | 14 | 0 | 47 | 25 | |||
Net result from derivative transactions | 0 | 0 | 0 | 0 | |||
Earnings (loss) from investment in unconsolidated joint ventures | 159 | 471 | 455 | 912 | |||
Gain (loss) on extinguishment/defeasance of debt | 0 | 0 | |||||
Total other income (loss) | 46,120 | 24,243 | 70,609 | 61,566 | |||
Salaries and employee benefits | 0 | 0 | 0 | 0 | |||
Operating expenses | 0 | 0 | 0 | 0 | |||
Real estate operating expenses | (6,345) | (6,034) | (12,555) | (13,981) | |||
Fee expense | (1,018) | (442) | (1,140) | (618) | |||
Depreciation and amortization | (9,440) | (9,791) | (18,950) | (19,775) | |||
Total costs and expenses | (16,803) | (16,267) | (32,645) | (34,374) | |||
Income tax (expense) benefit | 0 | 0 | 0 | 0 | |||
Net income (loss) | 19,373 | (1,780) | 19,235 | 7,209 | |||
Total assets | 986,267 | 986,267 | 1,031,557 | ||||
Corporate/Other | |||||||
Income Statement [Abstract] | |||||||
Interest income | 108 | 276 | 270 | 1,090 | |||
Interest expense | (21,045) | (39,140) | (43,325) | (68,678) | |||
Net interest income (expense) | (20,937) | (38,864) | (43,056) | (67,588) | |||
(Provision) benefit for loan losses | 0 | 0 | 0 | 0 | |||
Net interest income (expense) after provision for (release of) loan losses | (20,937) | (38,864) | (43,056) | (67,588) | |||
Operating lease income | 0 | 0 | 0 | 0 | |||
Sale of loans, net | 0 | 0 | 0 | 0 | |||
Realized gain (loss) on securities | 0 | 0 | 0 | 0 | |||
Unrealized gain (loss) on equity securities | 0 | 0 | |||||
Unrealized gain (loss) on Agency interest-only securities | 0 | 0 | 0 | 0 | |||
Realized gain (loss) on sale of real estate, net | 0 | 0 | 0 | 0 | |||
Impairment of real estate | 0 | 0 | |||||
Fee and other income | 142 | 1,074 | 424 | 742 | |||
Net result from derivative transactions | 0 | 0 | 0 | 0 | |||
Earnings (loss) from investment in unconsolidated joint ventures | 0 | 0 | 0 | 0 | |||
Gain (loss) on extinguishment/defeasance of debt | 19,017 | 21,077 | |||||
Total other income (loss) | 142 | 20,091 | 424 | 21,819 | |||
Salaries and employee benefits | (8,477) | (7,001) | (18,011) | (24,023) | |||
Operating expenses | (4,245) | (6,224) | (8,495) | (12,018) | |||
Real estate operating expenses | 0 | 0 | 0 | 0 | |||
Fee expense | (172) | 0 | (290) | 0 | |||
Depreciation and amortization | (24) | (25) | (50) | (50) | |||
Total costs and expenses | (12,918) | (13,250) | (26,846) | (36,091) | |||
Income tax (expense) benefit | 318 | 550 | 1,096 | 5,091 | |||
Net income (loss) | (33,395) | $ (31,473) | (68,382) | $ (76,769) | |||
Total assets | 1,357,020 | 1,357,020 | 1,448,303 | ||||
Investment in FHLB stock | 13,000 | 13,000 | |||||
Corporate/Other | Senior Unsecured Notes | |||||||
Income Statement [Abstract] | |||||||
Senior notes | $ 2,100,000 | $ 2,100,000 | $ 1,600,000 | ||||
[1] | Includes amounts relating to consolidated variable interest entities. Refer to Note 1 and Note 10. |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - USD ($) $ in Thousands | Jul. 13, 2021 | Apr. 27, 2020 | Jun. 30, 2021 | Dec. 31, 2020 | |
Subsequent Event [Line Items] | |||||
Debt obligations, net | [1] | $ 3,975,715 | $ 4,209,864 | ||
Loans financed | $ 481,300 | ||||
Advance rate | 64.50% | ||||
Variable Interest Entity, Primary Beneficiary | |||||
Subsequent Event [Line Items] | |||||
Debt obligations, net | $ 168,843 | $ 276,516 | |||
Collateralized Loan Obligation | Variable Interest Entity, Primary Beneficiary | |||||
Subsequent Event [Line Items] | |||||
Subordinate and controlling interest | 35.50% | ||||
Non-Recourse Notes | CLO Debt | |||||
Subsequent Event [Line Items] | |||||
Debt obligations, net | $ 310,200 | ||||
Subsequent Event | Collateralized Loan Obligation | Variable Interest Entity, Primary Beneficiary | |||||
Subsequent Event [Line Items] | |||||
Subordinate and controlling interest | 18.00% | ||||
Subsequent Event | Non-Recourse Notes | CLO Debt | |||||
Subsequent Event [Line Items] | |||||
Debt obligations, net | $ 498,200 | ||||
Loans financed | $ 607,500 | ||||
Advance rate | 82.00% | ||||
[1] | Includes amounts relating to consolidated variable interest entities. Refer to Note 1 and Note 10. |
Uncategorized Items - ladr-2021
Label | Element | Value |
Restricted Cash and Investments | us-gaap_RestrictedCashAndInvestments | $ 29,852,000 |
Accounting Standards Update [Extensible Enumeration] | us-gaap_AccountingStandardsUpdateExtensibleList | Accounting Standards Update 2016-13 [Member] |