Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2022 | Apr. 22, 2022 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2022 | |
Current Fiscal Year End Date | --12-31 | |
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, $0.001 par value | |
Trading Symbol | LADR | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Smaller Reporting Company | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0001577670 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Class A Common Stock | ||
Entity Common Stock, Shares Outstanding | 127,221,540 | |
Class B Common Stock | ||
Entity Common Stock, Shares Outstanding | 0 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | |
Assets | |||
Cash and cash equivalents | [1] | $ 431,762 | $ 548,744 |
Restricted cash | [1] | 63,462 | 72,802 |
Mortgage loan receivables held for investment, net, at amortized cost: | |||
Mortgage loans receivable | [1] | 3,857,471 | 3,553,737 |
Allowance for credit losses | [1] | (32,332) | (31,752) |
Mortgage loan receivables held for sale | [1] | 53,901 | 0 |
Real estate securities | [1] | 662,942 | 703,280 |
Real estate and related lease intangibles, net | [1] | 792,857 | 865,694 |
Real estate held for sale | [1] | 55,412 | 25,179 |
Investments in and advances to unconsolidated joint ventures | [1] | 5,243 | 23,154 |
Derivative instruments | [1] | 234 | 402 |
Accrued interest receivable | [1] | 14,450 | 13,645 |
Other assets | [1] | 68,795 | 76,367 |
Total assets | [1] | 5,974,197 | 5,851,252 |
Liabilities | |||
Debt obligations, net | [1] | 4,343,311 | 4,219,703 |
Dividends payable | [1] | 26,763 | 27,591 |
Accrued expenses | [1] | 42,028 | 40,249 |
Other liabilities | [1] | 52,938 | 50,090 |
Total liabilities | [1] | 4,465,040 | 4,337,633 |
Commitments and contingencies (Note 18) | [1] | 0 | 0 |
Equity | |||
Additional paid-in capital | [1] | 1,815,661 | 1,795,249 |
Treasury stock, 804,647 and 1,400,197 shares, at cost | [1] | (88,258) | (76,324) |
Retained earnings (dividends in excess of earnings) | [1] | (214,084) | (207,802) |
Accumulated other comprehensive income (loss) | [1] | (10,753) | (4,112) |
Total shareholders’ equity | [1] | 1,502,693 | 1,507,137 |
Noncontrolling interests in consolidated joint ventures | [1] | 6,464 | 6,482 |
Total equity | [1] | 1,509,157 | 1,513,619 |
Total liabilities and equity | [1] | 5,974,197 | 5,851,252 |
Class A Common Stock | |||
Equity | |||
Common stock | [1] | $ 127 | $ 126 |
[1] | Includes amounts relating to consolidated variable interest entities. Refer to Note 2 and Note 10. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2022 | Dec. 31, 2021 |
Treasury stock (in shares) | 804,647 | 1,400,197 |
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) | 128,027,478 | 126,852,765 |
Common stock, outstanding (in shares) | 127,222,831 | 125,452,568 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Net interest income | ||
Interest income | $ 56,205 | $ 39,287 |
Interest expense | 47,035 | 45,973 |
Net interest income | 9,170 | (6,686) |
Provision for (release of) loan loss reserves | 874 | (4,251) |
Net interest income (expense) after provision for (release of) loan losses | 8,296 | (2,435) |
Other income (loss) | ||
Real estate operating income | 26,354 | 24,159 |
Sale of loans, net | (949) | 0 |
Realized gain (loss) on securities | (96) | 579 |
Unrealized gain (loss) on equity securities | 14 | 0 |
Unrealized gain (loss) on Agency interest-only securities | 3 | (20) |
Realized gain (loss) on sale of real estate, net | 29,154 | 0 |
Fee and other income | 7,194 | 3,284 |
Net result from derivative transactions | 3,135 | 4,771 |
Earnings (loss) from investment in unconsolidated joint ventures | 434 | 436 |
Total other income (loss) | 65,243 | 33,209 |
Costs and expenses | ||
Compensation and employee benefits | 29,864 | 9,533 |
Operating expenses | 5,508 | 4,241 |
Real estate operating expenses | 8,992 | 6,211 |
Fee expense | 1,988 | 1,599 |
Depreciation and amortization | 9,342 | 9,536 |
Total costs and expenses | 55,694 | 31,120 |
Income (loss) before taxes | 17,845 | (346) |
Income tax expense (benefit) | (1,309) | (778) |
Net income (loss) | 19,154 | 432 |
Net (income) loss attributable to noncontrolling interests in consolidated joint ventures | $ (122) | $ (240) |
Earnings per share: | ||
Basic (in dollars per share) | $ 0.15 | $ 0 |
Diluted (in dollars per share) | $ 0.15 | $ 0 |
Weighted average shares outstanding: | ||
Basic (in shares) | 124,305,943 | 123,974,970 |
Diluted (in shares) | 125,478,001 | 124,324,683 |
Class A Common Stock | ||
Costs and expenses | ||
Net income (loss) attributable to Class A common shareholders | $ 19,032 | $ 192 |
Earnings per share: | ||
Basic (in dollars per share) | $ 0.15 | $ 0 |
Diluted (in dollars per share) | $ 0.15 | $ 0 |
Weighted average shares outstanding: | ||
Basic (in shares) | 124,305,943 | 123,974,970 |
Diluted (in shares) | 125,478,001 | 124,324,683 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Net income (loss) | $ 19,154 | $ 432 |
Unrealized gain (loss) on securities, net of tax: | ||
Unrealized gain (loss) on real estate securities, available for sale | (6,737) | 7,428 |
Reclassification adjustment for (gain) loss included in net income (loss) | 96 | (579) |
Total other comprehensive income (loss) | (6,641) | 6,849 |
Comprehensive income (loss) | 12,513 | 7,281 |
Comprehensive (income) loss attributable to noncontrolling interest in consolidated joint ventures | (122) | (240) |
Class A Common Stock | ||
Unrealized gain (loss) on securities, net of tax: | ||
Comprehensive income (loss) attributable to Class A common shareholders | $ 12,391 | $ 7,041 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) $ in Thousands | Total | Common StockClass A Common Stock | Additional Paid- in-Capital | Treasury Stock | Retained Earnings (Dividends in Excess of Earnings) | Accumulated Other Comprehensive Income (Loss) | Consolidated Joint Ventures | |
Beginning Balance (in shares) at Dec. 31, 2020 | 126,378,000 | |||||||
Beginning Balance at Dec. 31, 2020 | $ 1,548,425 | $ 127 | $ 1,780,074 | $ (62,859) | $ (163,717) | $ (10,463) | $ 5,263 | |
Increase Decrease in Stockholders' Equity | ||||||||
Distributions | (269) | (269) | ||||||
Amortization of equity based compensation | 5,276 | 5,276 | ||||||
Purchase of treasury stock (in shares) | (20,000) | |||||||
Purchase of treasury stock | (214) | (214) | ||||||
Re-issuance of treasury stock (in shares) | 748,000 | |||||||
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) | (437,000) | |||||||
Shares acquired to satisfy minimum required federal and state tax withholding on vesting restricted stock and units | (4,421) | (4,421) | ||||||
Forfeitures (in shares) | (327,000) | |||||||
Dividends declared | (25,238) | (25,238) | ||||||
Net income (loss) | 432 | 192 | 240 | |||||
Other comprehensive income (loss) | 6,849 | 6,849 | ||||||
Ending Balance (in shares) at Mar. 31, 2021 | 126,342,000 | |||||||
Ending Balance at Mar. 31, 2021 | 1,530,839 | $ 127 | 1,785,350 | (67,495) | (188,763) | (3,614) | 5,234 | |
Beginning Balance (in shares) at Dec. 31, 2021 | 125,453,000 | |||||||
Beginning Balance at Dec. 31, 2021 | 1,513,619 | [1] | $ 126 | 1,795,249 | (76,324) | (207,802) | (4,112) | 6,482 |
Increase Decrease in Stockholders' Equity | ||||||||
Distributions | (140) | (140) | ||||||
Amortization of equity based compensation | 20,412 | 20,412 | ||||||
Grants of restricted stock (in shares) | 2,248,000 | |||||||
Grants of restricted stock | (1) | $ 2 | (3) | |||||
Purchase of treasury stock (in shares) | (55,000) | |||||||
Purchase of treasury stock | (611) | (611) | ||||||
Re-issuance of treasury stock (in shares) | 596,000 | |||||||
Shares acquired to satisfy minimum required federal and state tax withholding on vesting restricted stock and units (in shares) | (952,000) | |||||||
Shares acquired to satisfy minimum required federal and state tax withholding on vesting restricted stock and units | (11,321) | $ (1) | (11,320) | |||||
Forfeitures (in shares) | (66,000) | |||||||
Dividends declared | (25,314) | (25,314) | ||||||
Net income (loss) | 19,154 | 19,032 | 122 | |||||
Other comprehensive income (loss) | (6,641) | (6,641) | ||||||
Ending Balance (in shares) at Mar. 31, 2022 | 127,224,000 | |||||||
Ending Balance at Mar. 31, 2022 | $ 1,509,157 | [1] | $ 127 | $ 1,815,661 | $ (88,258) | $ (214,084) | $ (10,753) | $ 6,464 |
[1] | Includes amounts relating to consolidated variable interest entities. Refer to Note 2 and Note 10. |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | ||
Cash flows from operating activities: | |||
Net income (loss) | $ 19,154 | $ 432 | |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 9,342 | 9,536 | |
Unrealized (gain) loss on derivative instruments | 162 | (2) | |
Unrealized (gain) loss on equity securities and investment in mutual fund | (14) | 0 | |
Unrealized (gain) loss on Agency interest-only securities | (3) | 20 | |
Provision for (release of) loan loss reserves | 874 | (4,251) | |
Amortization of equity based compensation | 20,412 | 5,276 | |
Amortization of deferred financing costs included in interest expense | 5,857 | 4,892 | |
Amortization of premium/discount on mortgage loan financing included in interest expense | (330) | (273) | |
Amortization of above- and below-market lease intangibles | (444) | (478) | |
(Accretion)/amortization of discount, premium and other fees on loans | (5,162) | (3,408) | |
(Accretion)/amortization of discount, premium and other fees on securities | (37) | 35 | |
Realized (gain) loss on sale of mortgage loan receivables held for sale | 949 | 0 | |
Realized (gain) loss on disposition of loan via foreclosure | 0 | 26 | |
Realized (gain) loss on securities | 96 | (579) | |
Realized (gain) loss on sale of real estate, net | (29,154) | 0 | |
(Earnings) loss from investments in unconsolidated joint ventures in excess of distributions received | 191 | (436) | |
Insurance proceeds used for remediation work due to property damage | (36) | 0 | |
Origination of mortgage loan receivables held for sale | (54,850) | (41,000) | |
Repayment of mortgage loan receivables held for sale | 0 | 36 | |
Change in deferred tax asset (liability) | (402) | 1,219 | |
Changes in operating assets and liabilities: | |||
Accrued interest receivable | (805) | 2,580 | |
Other assets | 2,332 | (1,565) | |
Accrued expenses and other liabilities | 1,833 | (15,650) | |
Net cash provided by (used in) operating activities | (30,035) | (43,590) | |
Cash flows from investing activities: | |||
Origination of mortgage loan receivables held for investment | (648,507) | (116,555) | |
Repayment of mortgage loan receivables held for investment | 358,198 | 394,446 | |
Proceeds from sale of mortgage loan receivables held for investment | 0 | 46,557 | |
Purchases of real estate securities | (26,033) | (40,016) | |
Repayment of real estate securities | 57,756 | 10,540 | |
Basis recovery of interest-only securities | 1,383 | 2,002 | |
Proceeds from sales of real estate securities | 4,261 | 329,063 | |
Capital improvements of real estate | (751) | (1,269) | |
Proceeds from sale of real estate | 79,473 | 43,750 | |
Capital distribution from investment in unconsolidated joint ventures | 2,284 | 2,181 | |
Proceeds from sale of FHLB stock | 0 | 18,040 | |
Net cash provided by (used in) investing activities | (171,936) | 688,739 | |
Cash flows from financing activities: | |||
Deferred financing costs paid | (1,510) | (621) | |
Proceeds from borrowings under debt obligations | 443,866 | 1,631,557 | |
Repayment of borrowings under debt obligations | (328,495) | (2,077,161) | |
Cash dividends paid to Class A common shareholders | (26,142) | (26,245) | |
Reissuance of treasury stock | (1) | (1) | |
Payment of liability assumed in exchange for shares for the minimum withholding taxes on vesting restricted stock | (11,321) | (4,421) | |
Purchase of treasury stock | (611) | (214) | |
Issuance of common stock | 3 | 1 | |
Net cash provided by (used in) financing activities | 75,649 | (477,374) | |
Net increase (decrease) in cash, cash equivalents and restricted cash | (126,322) | 167,775 | |
Cash, cash equivalents and restricted cash at beginning of period | 621,546 | 1,284,284 | |
Cash, cash equivalents and restricted cash at end of period | 495,224 | 1,452,059 | |
Supplemental information: | |||
Cash paid for interest, net of amounts capitalized | 36,146 | 54,362 | |
Cash paid (received) for income taxes | 7 | 863 | |
Non-cash investing and financing activities: | |||
Securities and derivatives purchased, not settled | 3,776 | 0 | |
Securities and derivatives sold, not settled | 54 | 0 | |
Repayment in transit of mortgage loans receivable held for investment (other assets) | 18,373 | 50,832 | |
Settlement of mortgage loan receivable held for investment by real estate, net | 0 | (43,129) | |
Real estate acquired in settlement of mortgage loan receivable held for investment, net | 0 | 43,750 | |
Real estate acquired in former unconsolidated joint venture agreement | 15,436 | 0 | |
Transfer of real estate, net into real estate held for sale | (55,412) | 0 | |
Dividends declared, not paid | 26,763 | 26,530 | |
Cash and cash equivalents | 431,762 | [1] | 1,305,686 |
Restricted cash | 63,462 | 146,373 | |
Total cash, cash equivalents and restricted cash shown in the consolidated statement of cash flows | 495,224 | 1,452,059 | |
Consolidated Joint Venture | |||
Cash flows from financing activities: | |||
Capital distributed to noncontrolling interests in consolidated joint ventures | (140) | (269) | |
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 | $ (14) | $ 0 | |
[1] | Includes amounts relating to consolidated variable interest entities. Refer to Note 2 and Note 10. |
ORGANIZATION AND OPERATIONS
ORGANIZATION AND OPERATIONS | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND OPERATIONS | 1. ORGANIZATION AND OPERATIONS Ladder Capital Corp (the “Company”) is an internally-managed real estate investment trust (“REIT”) that is a leader in commercial real estate finance. The Company originates and invests in a diverse portfolio of commercial real estate and real estate-related assets, focusing on senior secured assets. The Company’s investment activities include: (i) the Company’s 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 March 31, 2022, 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.” |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2022 | |
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, 2021, 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 that 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. Refer to 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 engages 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 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.. Recent Accounting Pronouncements Pending Adoption In March 2022, the FASB issued ASU 2022-02 Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures, (“ASU 2022-02”). ASU 2022-02 eliminates the recognition and measurement guidance for troubled debt restructuring for creditors that have adopted ASC 326 and requires them to make enhanced disclosures about loan modifications for borrowers experiencing financial difficulty. Early adoption is permitted. The Company does not expect the adoption to have a material impact on the Company’s consolidated financial statements. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, (“ASU 2020-04”). ASU 2020-04 provides optional expedients and exceptions for applying GAAP to 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. 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 | 3 Months Ended |
Mar. 31, 2022 | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Abstract] | |
MORTGAGE LOAN RECEIVABLES | 3. MORTGAGE LOAN RECEIVABLES March 31, 2022 ($ in thousands) Outstanding Carrying Weighted Remaining Mortgage loan receivables held for investment, net, at amortized cost: First mortgage loans $ 3,803,480 $ 3,773,593 5.34 % 1.7 Mezzanine loans 83,954 83,878 10.70 % 2.0 Total mortgage loans receivable 3,887,434 3,857,471 5.45 % 1.7 Allowance for credit losses N/A (32,332) Total mortgage loan receivables held for investment, net, at amortized cost 3,887,434 3,825,139 Mortgage loan receivables held for sale: First mortgage loans 54,850 53,901 4.44 % 9.9 Total $ 3,942,284 $ 3,879,040 (3) 5.44 % 1.8 (1) Includes the impact from interest rate floors. March 31, 2022 LIBOR and SOFR rates are used to calculate weighted average yield for floating rate loans. (2) Excludes non-accrual loans of $79.9 million. Refer to “Non-Accrual Status” below for further details. (3) Includes $27.4 million of deferred origination fees and other items as of March 31, 2022. As of March 31, 2022, $3.6 billion, or 92.6%, of the outstanding face amount of our mortgage loan receivables held for investment, net, at amortized cost, were at variable interest rates with $2.9 billion linked to LIBOR and $0.7 billion linked to SOFR. Of this $3.6 billion, 98% of these variable interest rate mortgage loan receivables were subject to interest rate floors. As of March 31, 2022, $54.9 million or 100%, of the outstanding face amount of our mortgage loan receivables held for sale were at fixed interest rates linked to SOFR. December 31, 2021 ($ in thousands) Outstanding Carrying Weighted Remaining Mortgage loan receivables held for investment, net, at amortized cost: First mortgage loans $ 3,482,715 $ 3,454,654 5.50 % 1.8 Mezzanine loans 99,204 99,083 10.92 % 1.9 Total mortgage loans receivable 3,581,919 3,553,737 5.65 % 1.8 Allowance for credit losses N/A (31,752) Total mortgage loan receivables held for investment, net, at amortized cost 3,581,919 3,521,985 Total $ 3,581,919 $ 3,521,985 (3) 5.65 % 1.8 (1) Includes the impact from interest rate floors. December 31, 2021 LIBOR rates are used to calculate weighted average yield for floating rate loans. (2) Excludes non-accrual loans of $80.2 million. Refer to “Non-Accrual Status” below for further details. (3) Includes $26.0 million of deferred origination fees and other items as of December 31, 2021. As of December 31, 2021, $3.3 billion, or 91.5%, 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 $3.3 billion, 100% of these variable rate mortgage loan receivables were subject to interest rate floors. For the three months ended March 31, 2022 and 2021, the activity in our loan portfolio was as follows ($ in thousands): Mortgage loan receivables held for investment, net, at amortized cost: Mortgage loans receivable Allowance for credit losses Mortgage loan Balance, December 31, 2021 $ 3,553,737 $ (31,752) $ — Origination of mortgage loan receivables 648,507 — 54,850 Repayment of mortgage loan receivables (349,935) — — Sale of loans, net (2) — — (949) Accretion/amortization of discount, premium and other fees 5,162 — — Release (addition) of provision for current expected credit loss, net — (580) — Balance, March 31, 2022 $ 3,857,471 $ (32,332) $ 53,901 (1) Refer to Note 5 Real Estate and Related Lease Intangibles, Net for further detail on foreclosure of real estate. (2) Represents unrealized lower of cost or market adjustment on loans held for sale. 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 116,555 — 41,000 Repayment of mortgage loan receivables (374,735) — (36) Proceeds from sales of mortgage loan receivables (46,557) — — Non-cash disposition of loan via foreclosure(1) (45,000) — — Accretion/amortization of discount, premium and other fees 3,408 — — Release of asset-specific loan loss provision via foreclosure(1) — 1,150 — Release (addition) of provision for current expected credit loss, net — 4,116 — Balance, March 31, 2021 $ 2,007,730 $ (36,241) $ 71,482 (1) Refer to Note 5, Real Estate and Related Lease Intangibles, Net for further detail on real estate acquired via foreclosure. Allowance for Credit Losses and Non-Accrual Status ($ in thousands) Three Months Ended March 31, Allowance for Credit Losses 2022 2021 Allowance for credit losses at beginning of period $ 31,752 $ 41,507 Provision for (release of) current expected credit loss, net (1) 580 (4,116) Foreclosure of loans subject to asset-specific reserve — (1,150) Allowance for credit losses at end of period $ 32,332 $ 36,241 (1) There was no asset specific reserves recorded for the three months ended March 31, 2022 or 2021. Non-Accrual Status March 31, 2022(1) December 31, 2021(2) Carrying value of loans on non-accrual status, net of asset-specific reserve $ 79,877 $ 80,229 (1) Includes two of the Company’s loans, which were originated simultaneously as part of a single transaction and had a combined carrying value of $24.1 million as of March 31, 2022. Additionally, as of March 31, 2022 there were two loans with a combined carrying value of $25.2 million and one loan with a carrying value of $30.5 million. (2) Includes 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 $25.6 million and one loan with a carrying value of $30.5 million. Current Expected Credit Loss (“CECL”) As of March 31, 2022, the Company has a $33.1 million allowance for current expected credit losses, of which $32.3 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 $69.6 million as of March 31, 2022. The Company concluded that none of its loans, other than the three loans discussed in “Non-Accrual Status” below, are individually impaired as of March 31, 2022. As of December 31, 2021, the Company had a $32.2 million allowance for current expected credit losses, of which $31.8 million pertained to mortgage loan receivables. This allowance included three loans that have an aggregate of $20.2 million of asset-specific reserves against a carrying value of $69.9 million as of December 31, 2021. The Company concluded that none of its loans, other than the three loans discussed in “Non-Accrual Status” below, are individually impaired as of December 31, 2021. The total change in reserve for provision for the three months ended March 31, 2022 was an increase of $0.9 million. The addition represents an increase in the general reserve of loans held for investment of $0.6 million and an increase on unfunded loan commitments of $0.3 million. The increase during the three months ended March 31, 2022 is primarily due to a net increase in originations quarter over quarter. The total change in reserve for provision for the three months ended March 31, 2021 was a release of $4.3 million. The release represented a decline in the general reserve of loans held for investment of $4.2 million and the release on unfunded loan commitments of $0.1 million. The release during the three months ended is primarily due to an improvement in macro economic assumptions. Loan Portfolio by Geographic Region, Property Type and Vintage (amortized cost $ in thousands) March 31, December 31, Geographic Region 2022 2021 South $ 1,067,323 $ 937,125 Northeast 1,186,408 1,080,652 Midwest 440,893 434,157 West 491,063 530,599 Southwest 602,204 501,272 Subtotal mortgage loans receivable 3,787,891 3,483,805 Individually impaired loans(1) 69,580 69,932 Total mortgage loans receivable $ 3,857,471 $ 3,553,737 (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 the Company’s mortgage loan portfolio by collateral type. The following tables summarize the amortized cost of the mortgage loan portfolio by property type as of March 31, 2022 and December 31, 2021, respectively ($ in thousands): Amortized Cost Basis by Origination Year as of March 31, 2022 Collateral Type 2022 2021 2020 2019 2018 and Earlier Total Office $ 76,325 $ 693,189 $ 29,650 $ 69,991 $ 155,582 $ 1,024,737 Multifamily 329,824 666,979 — 23,464 — 1,020,267 Mixed Use 179,135 459,776 88,280 140,948 — 868,139 Industrial 20,140 95,757 — 110,202 — 226,099 Hospitality — 43,344 — 21,579 147,420 212,343 Retail 11,250 105,649 — 66,269 10,472 193,640 Manufactured Housing — 97,873 — 26,437 3,934 128,244 Other 15,964 26,878 — 7,956 20,055 70,853 Self-Storage — 43,569 — — — 43,569 Subtotal mortgage loans receivable 632,638 2,233,014 117,930 466,846 337,463 3,787,891 Individually Impaired loans (1) — — — — 69,580 69,580 Total mortgage loans receivable (2) $ 632,638 $ 2,233,014 $ 117,930 $ 466,846 $ 407,043 $ 3,857,471 Amortized Cost Basis by Origination Year as of December 31, 2021 Collateral Type 2021 2020 2019 2018 2017 and Earlier Total Office $ 784,556 $ 29,636 $ 121,346 $ 59,073 $ 73,911 $ 1,068,522 Mixed Use 538,949 84,600 140,926 — — 764,475 Multifamily 697,089 3,131 47,322 — — 747,542 Hospitality 41,635 — 43,666 90,132 110,890 286,323 Retail 105,362 — 89,058 — 25,486 219,906 Industrial 41,203 — 108,469 — — 149,672 Manufactured Housing 117,265 — 26,404 — 3,941 147,610 Other 26,801 — 8,768 20,743 — 56,312 Self-Storage 43,443 — — — — 43,443 Subtotal mortgage loans receivable 2,396,303 117,367 585,959 169,948 214,228 3,483,805 Individually Impaired loans (1) — — — — 69,932 69,932 Total mortgage loans receivable (3) $ 2,396,303 $ 117,367 $ 585,959 $ 169,948 $ 284,160 $ 3,553,737 (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 March 31, 2022. (3) Not included above is $12.6 million of accrued interest receivable on all loans at December 31, 2021. Individually Impaired Loans As of March 31, 2022, two loans with an amortized cost basis of $26.8 million and a combined carrying value of $24.1 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. This asset-specific provision 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 March 31, 2022, the Company determined the loan was adequately provisioned based on the application of direct capitalization rates of 4.88% to 5.23%. 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 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. 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 March 31, 2022, the amortized cost basis was $42.7 million, and after allowance for credit loss of the A-Note and the B-Note of $17.5 million, the carrying value of the combined mortgage loans was $25.2 million. As of March 31, 2022, the Company determined the loan was adequately provisioned based on the application of direct capitalization rates of 8.50% to 9.25%. These non-recurring fair values are considered Level 3 measurements in the fair value hierarchy. Other Loans on Non-Accrual Status As of March 31, 2022, one other loan secured by a mixed-use property located in the Northeast was on non-accrual status, with a carrying value of $30.5 million. The Company put this loan on non-accrual status in the fourth quarter of 2020 and performed a review of the collateral for the loan. The review consisted of conversations with market participants familiar with the property locations as well as reviewing market data and comparable properties. There are no other loans on non-accrual status other than those discussed above in Individually Impaired Loans as of March 31, 2022. We continue to actively monitor our mortgage loans receivable portfolio for both the immediate and long term impact of current market conditions, including the inflationary environment, rising interest rates and the ongoing emergence from the COVID-19 pandemic. |
REAL ESTATE SECURITIES
REAL ESTATE SECURITIES | 3 Months Ended |
Mar. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
REAL ESTATE SECURITIES | 4. REAL ESTATE SECURITIES The Company invests in primarily AAA-rated real estate securities, typically front pay securities, with relatively short duration and significant credit subordination. We continue to actively monitor the impacts of current market conditions on our securities portfolio. Commercial mortgage backed securities (“CMBS”), CMBS interest-only securities, U.S. Agency securities, Government National Mortgage Association (“GNMA”) construction securities, GNMA permanent securities and corporate bonds are classified as available-for-sale and reported at fair value with changes in fair value recorded in the current period in other comprehensive income. GNMA and Federal Home Loan Mortgage Corp (“FHLMC”) securities are recorded at fair value with changes in fair value recorded in current period earnings. Equity securities are reported at fair value with changes in fair value recorded in current period earnings. The following is a summary of the Company’s securities at March 31, 2022 and December 31, 2021 ($ in thousands): March 31, 2022 Gross Unrealized Weighted Average Asset Type Outstanding Amortized Cost Basis Gains Losses Carrying # of Rating (1) Coupon % Yield % Remaining CMBS $ 659,685 $ 659,099 $ 8 $ (11,063) $ 648,044 (2) 71 AAA 1.82 % 1.90 % 1.81 CMBS interest-only(3) 1,287,812 13,952 352 (52) 14,252 (4) 13 AAA 0.57 % 4.57 % 1.76 GNMA interest-only(3)(5) 54,895 407 75 (31) 451 14 AAA 0.36 % 5.29 % 3.55 Agency securities 52 53 — — 53 — AAA 4.00 % 2.78 % 1.92 Total debt securities $ 2,002,444 $ 673,511 $ 435 $ (11,146) $ 662,800 98 0.98 % 1.96 % 1.81 Equity securities(7) N/A 148 14 — 162 2 N/A N/A N/A N/A Allowance for current expected credit losses N/A — — (20) (20) Total real estate securities $ 2,002,444 $ 673,659 $ 449 $ (11,166) $ 662,942 100 December 31, 2021 Gross Unrealized Weighted Average Asset Type Outstanding Amortized Gains Losses Carrying # of Rating (1) Coupon % Yield % Remaining CMBS $ 691,402 $ 691,026 $ 775 $ (5,508) $ 686,293 (2) 73 AAA 1.57 % 1.57 % 2.06 CMBS interest-only(3) 1,302,551 15,268 617 — 15,885 (4) 13 AAA 0.45 % 5.67 % 1.88 GNMA interest-only(3)(5) 59,075 518 105 (64) 559 14 AA+ 0.38 % 4.97 % 3.64 Agency securities 557 560 3 — 563 2 AA+ 2.47 % 1.58 % 0.69 Total debt securities $ 2,053,585 $ 707,372 $ 1,500 $ (5,572) $ 703,300 102 0.83 % 1.67 % 2.06 Allowance for current expected credit losses N/A — — (20) (20) Total real estate securities $ 2,053,585 $ 707,372 $ 1,500 $ (5,592) $ 703,280 102 (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) As of March 31, 2022 and December 31, 2021, respectively, includes $9.6 million and $9.9 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. (3) The amounts presented represent the principal amount of the mortgage loans outstanding in the pool in which the interest-only securities participate. (4) As of March 31, 2022 and December 31, 2021, respectively, includes $0.5 million and $0.5 million of restricted securities which are designated as risk retention securities under the Dodd-Frank Act and are therefore subject to transfer restrictions over the term of the securitization trust and are classified as held-to-maturity and reported at amortized cost. (5) Agency interest-only securities are recorded at fair value with changes in fair value recorded in current period earnings. The Company’s Agency interest-only securities are considered to be hybrid financial instruments that contain embedded derivatives. As a result, the Company has elected to account for them as hybrid instruments in their entirety at fair value with changes in fair value recognized in unrealized gain (loss) on Agency interest-only securities in the consolidated statements of income. (6) The Company has elected to account for equity securities at fair value with changes in fair value recorded in current period earnings. The following summarizes the carrying value of the Company’s debt securities by remaining maturity based upon expected cash flows at March 31, 2022 and December 31, 2021 ($ in thousands): March 31, 2022 Asset Type Within 1 year 1-5 years 5-10 years After 10 years Total CMBS $ 275,365 $ 366,518 $ — $ 6,162 $ 648,045 CMBS interest-only 756 13,496 — — 14,252 GNMA interest-only 80 216 154 — 450 Agency securities — 53 — — 53 Allowance for current expected credit losses — — — — (20) Total real estate securities $ 276,201 $ 380,283 $ 154 $ 6,162 $ 662,780 December 31, 2021 Asset Type Within 1 year 1-5 years 5-10 years After 10 years Total CMBS $ 304,357 $ 354,670 $ 10,307 $ 16,958 $ 686,292 CMBS interest-only 1,018 14,868 — — 15,886 GNMA interest-only 102 278 179 — 559 Agency securities 503 60 — — 563 Allowance for current expected credit losses — — — — (20) Total real estate securities $ 305,980 $ 369,876 $ 10,486 $ 16,958 $ 703,280 |
REAL ESTATE AND RELATED LEASE I
REAL ESTATE AND RELATED LEASE INTANGIBLES, NET | 3 Months Ended |
Mar. 31, 2022 | |
Real Estate [Abstract] | |
REAL ESTATE AND RELATED LEASE INTANGIBLES, NET | 5. REAL ESTATE AND RELATED LEASE INTANGIBLES, NET The following tables present additional detail related to our real estate portfolio, net ($ in thousands): March 31, 2022 December 31, 2021 Land $ 174,851 $ 186,940 Building 711,102 765,690 In-place leases and other intangibles 130,385 142,335 Undepreciated real estate and related lease intangibles 1,016,338 1,094,965 Less: Accumulated depreciation and amortization (223,481) (229,271) Real estate and related lease intangibles, net $ 792,857 $ 865,694 Below market lease intangibles, net (other liabilities)(1) $ (32,298) $ (33,203) (1) Below market lease intangibles, net is inclusive of $13.1 million and $12.8 million of accumulated amortization as of March 31, 2022 and December 31, 2021, respectively. Not included in the table above are two real estate investments totaling $55.4 million classified as real estate held for sale on the consolidated balance sheet as of March 31, 2022. This real estate is comprised of $14.1 million of land, $45.6 million of building, and $3.6 million of in-place leases and other intangibles to aggregate to $63.3 million of undepreciated real estate and lease intangibles. The property also includes $7.9 million of accumulated depreciation and amortization. The Company held $32.5 million of undepreciated real estate and lease intangibles held for sale as of December 31, 2021. At March 31, 2022 and December 31, 2021, the Company held foreclosed properties included in real estate and related lease intangibles, net with a carrying value of $96.1 million and $97.3 million, respectively. The following table presents depreciation and amortization expense on real estate recorded by the Company ($ in thousands): Three Months Ended March 31, 2022 2021 Depreciation expense(1) $ 7,088 $ 7,990 Amortization expense 2,254 1,546 Total real estate depreciation and amortization expense $ 9,342 $ 9,536 (1) Depreciation expense on the consolidated statements of income also includes $8 thousand and $25 thousand of depreciation on corporate fixed assets for the three months ended March 31, 2022 and 2021, respectively. The Company’s intangible assets are comprised of in-place leases, above market leases and other intangibles. The following tables present additional detail related to our intangible assets ($ in thousands): March 31, 2022 December 31, 2021 Gross intangible assets(1) $ 134,012 $ 146,593 Accumulated amortization 64,385 67,500 Net intangible assets $ 69,627 $ 79,093 (1) Includes $3.3 million and $3.8 million of unamortized above market lease intangibles which are included in real estate and related lease intangibles, net on the consolidated balance sheets as of March 31, 2022 and December 31, 2021, respectively. The following table presents increases/reductions in operating lease income related to the amortization of above or below market leases recorded by the Company ($ in thousands): Three Months Ended March 31, 2022 2021 Reduction in operating lease income for amortization of above market lease intangibles acquired $ (76) $ (92) Increase in operating lease income for amortization of below market lease intangibles acquired 520 570 Total $ 444 $ 478 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 March 31, 2022 ($ in thousands): Period Ending December 31, Adjustment to Operating Lease Income Amortization Expense 2022 $ 679 $ 3,771 2023 906 3,889 2024 906 3,889 2025 906 3,889 2026 906 3,888 Thereafter 24,715 47,021 Total $ 29,018 $ 66,347 Rent Receivables, Unencumbered Real Estate, Operating Lease Income and Impairment of Real Estate There were $1.2 million and $0.4 million of rent receivables included in other assets on the consolidated balance sheets as of March 31, 2022 and December 31, 2021, respectively. There was unencumbered real estate of $99.3 million and $85.9 million as of March 31, 2022 and December 31, 2021, respectively. During the three months ended March 31, 2022 and 2021, the Company recorded $4.0 million and $1.0 million respectively, of real estate operating income, which excludes rental income. The following is a schedule of non-cancellable, contractual, future minimum rent under leases (excluding property operating expenses paid directly by tenant under net leases) at March 31, 2022 ($ in thousands): Period Ending December 31, Amount 2022 $ 47,218 2023 57,334 2024 55,718 2025 53,712 2026 50,402 Thereafter 249,708 Total $ 514,092 Acquisitions During the three months ended March 31, 2022, the Company acquired, via change in control, a previously held interest in a non-controlling equity investment in a mixed use property with one remaining residential condo unit and one remaining retail condo unit in New York, New York. The carrying value of the property at the time of change in control was $15.4 million, which was determined to be fair value. The fair value of the remaining condo unit was determined based on comparable sales in the building and the value of the remaining retail unit was valued utilizing a cap rate of 5.5%. The key inputs used to determine fair value were determined to be Level 3 inputs. During the three months ended March 31, 2021, the Company acquired the following properties ($ in thousands): Acquisition Date Type Primary Location(s) Purchase Price/Fair Value on the Date of Foreclosure Gain/(Loss) on Loan Foreclosure Ownership Interest (1) Real estate acquired via foreclosure February 2021 (2) Hotel Miami, FL 43,750 — (2) 100.0% Total real estate acquired via foreclosure 43,750 $ — Total real estate acquisitions $ 43,750 (1) Properties were consolidated as of acquisition date. (2) 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 $1.2 million recorded in the three months ended December 31, 2020. In February 2021, the foreclosed property was sold without any gain or loss. The Company recorded no revenues from its 2021 acquisitions for the three months ended March 31, 2021. The Company allocates purchase consideration based on relative fair values, and real estate acquisition costs are capitalized as a component of the cost of the assets acquired for asset acquisitions. During the three months ended March 31, 2022 and March 31, 2021, all acquisitions were determined to be asset acquisitions. Sales The Company sold the following properties during the three months ended March 31, 2022 ($ in thousands): Sales Date Type Primary Location(s) Net Sales Proceeds Net Book Value Realized Gain/(Loss) Properties March 2022 Office Ewing, NJ $ 38,652 $ 24,134 $ 14,518 1 March 2022 Warehouse Conyers, GA 40,752 26,116 14,636 1 Totals (1) $ 79,404 $ 50,250 $ 29,154 (1) Includes $3.7 million of defeasance costs upon repayment of the mortgage financing in connection with the sales that is recorded within interest expense on the consolidated statement of income, such amount was correspondingly paid by the buyer and received by the Company as part of the sale and recorded in fee and other income on the consolidated statement of income. The Company sold the following properties during the three months ended March 31, 2021 ($ 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 — — Totals $ 43,750 $ 43,750 $ — We continue to actively monitor our real estate properties for both the immediate and long term impact of current market conditions, including the inflationary environment, rising interest rates and the ongoing emergence from the COVID-19 pandemic. |
INVESTMENT IN AND ADVANCES TO U
INVESTMENT IN AND ADVANCES TO UNCONSOLIDATED JOINT VENTURES | 3 Months Ended |
Mar. 31, 2022 | |
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 March 31, 2022 and December 31, 2021 ($ in thousands): Entity March 31, 2022 December 31, 2021 Grace Lake JV, LLC $ 5,243 $ 5,434 24 Second Avenue Holdings LLC — 17,720 Investment in unconsolidated joint ventures $ 5,243 $ 23,154 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 months ended March 31, 2022 and 2021 ($ in thousands): Three Months Ended March 31, Entity 2022 2021 Grace Lake JV, LLC $ 434 $ 297 24 Second Avenue Holdings LLC — 139 Earnings (loss) from investment in unconsolidated joint ventures $ 434 $ 436 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 holds its investment in Grace Lake LLC in a TRS. 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 three months ended March 31, 2022, the Company received a $0.6 million distribution from its investment in Grace Lake LLC. There were no distributions received during the three months ended March 31, 2021. 24 Second Avenue Holdings LLC In February 2022, the Company assumed all management and control over 24 Second Avenue Holdings LLC upon maturity of its preferred equity interest in the entity and therefore, reclassified its interest to real estate held for investment on the balance sheet at cost. At the time of the change in control, 24 Second Avenue Holdings LLC owned the two remaining units of the property, one remaining residential condo unit and the retail condo ground floor space. Refer to Note 5 - Real estate and related intangibles, net for further disclosure. Combined Summary Financial Information for Unconsolidated Joint Ventures The following is a summary of the combined financial position of the unconsolidated joint ventures in which the Company had investment interests as of March 31, 2022 and December 31, 2021 ($ in thousands): March 31, 2022(1) December 31, 2021 Total assets $ 68,368 $ 109,873 Total liabilities 58,109 66,387 Partners’/members’ capital $ 10,259 $ 43,486 (1) As of March 31, 2022, the balance represents only the Grace Lake JV, LLC interest. 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 months ended March 31, 2022 and 2021 ($ in thousands): Three Months Ended March 31, 2022 2021 Total revenues $ 5,073 $ 4,514 Total expenses 3,337 3,323 Net income (loss) $ 1,736 $ 1,191 |
DEBT OBLIGATIONS, NET
DEBT OBLIGATIONS, NET | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
DEBT OBLIGATIONS, NET | 7. DEBT OBLIGATIONS, NET The details of the Company’s debt obligations at March 31, 2022 and December 31, 2021 are as follows ($ in thousands): March 31, 2022 Debt Obligations Committed / Carrying Value of Debt Obligations Committed but Unfunded Interest Rate at March 31, 2022(1) Current Term Maturity Remaining Extension Options Eligible Collateral Carrying Amount of Collateral Fair Value of Collateral Committed Loan Repurchase Facility(2) $ 500,000 $ 208,225 $ 291,775 1.9% — 2.1% 12/19/2022 (3) (4) $ 309,099 $ 309,099 Committed Loan Repurchase Facility 100,000 45,290 54,710 2.35% — 3.1% 2/26/2023 (5) (6) 63,519 63,519 Committed Loan Repurchase Facility 300,000 119,118 180,882 2.15% — 3.15% 12/19/2022 (7) (8) 184,616 184,616 Committed Loan Repurchase Facility 100,000 — 100,000 —% — —% 4/30/2024 (9) (4) — — Committed Loan Repurchase Facility 100,000 39,675 60,325 1.71% — 1.71% 1/3/2023 (3) (4) 52,766 52,766 Committed Loan Repurchase Facility 100,000 — 100,000 —% — —% 1/22/2024 (10) (8) — — Committed Loan Repurchase Facility 100,000 — 100,000 —% — —% 10/21/2022 (11) (12) — — Total Committed Loan Repurchase Facilities 1,300,000 412,308 887,692 610,000 610,000 Committed Securities Repurchase Facility(2) 635,114 28,839 606,275 1.09% — 1.42% 5/27/2023 N/A (13) 50,007 50,007 Uncommitted Securities Repurchase Facility N/A (14) 193,561 N/A (14) 0.66% — 2.06% 4/2022 - 6/2022 N/A (13) 206,501 206,501 (15) Total Repurchase Facilities 1,700,000 634,708 1,258,853 866,508 866,508 Revolving Credit Facility 266,430 — 266,430 —% — —% 2/11/2023 (16) N/A (17) N/A (17) N/A (17) Mortgage Loan Financing 646,126 648,666 — 3.75% — 6.16% 2022 - 2031(18) N/A (19) 748,995 970,126 (20) Secured Financing Facility 110,185 109,630 (21) — 10.75% — 10.75% 5/6/2023 N/A (22) 199,338 199,459 CLO Debt 1,064,365 1,055,402 (23) — 1.60% — 4.05% 2024 - 2026(24) N/A (4) 1,310,873 1,310,873 Borrowings from the FHLB 263,000 263,000 — 0.61% — 2.74% 2022 - 2024 N/A (25) 298,937 298,937 (26) Senior Unsecured Notes 1,649,794 1,631,905 (27) — 4.25% — 5.25% 2025 - 2029 N/A N/A (28) N/A (28) N/A (28) Total Debt Obligations, Net $ 5,699,900 $ 4,343,311 $ 1,525,283 $ 3,424,651 $ 3,645,903 (1) LIBOR and Term SOFR rates in effect as of March 31, 2022 are used to calculate interest rates for floating rate debt, as applicable. (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) One additional 12-month period at Company’s option. (6) First mortgage commercial real estate loans. It does not include the real estate collateralizing such loans. (7) Three 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 permitted during the final 12-month period. (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 $2.0 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 $0.3 million and an unamortized discount of $0.3 million related to the Purchase Right (described in detail under Secured Financing Facility below) at March 31, 2022. (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 $9.0 million at March 31, 2022. (24) Represents the estimated maturity date based on the remaining reinvestment period and underlying loan maturities. (25) Investment grade commercial real estate securities and cash. It does not include the first mortgage commercial real estate loans collateralizing such securities. (26) Includes $7.3 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. (27) Presented net of unamortized debt issuance costs of $17.9 million at March 31, 2022. (28) The obligations under the senior unsecured notes are guaranteed by the Company and certain of its subsidiaries. December 31, 2021 Debt Obligations Committed / Carrying Value of Debt Obligations Committed but Unfunded Interest Rate at December 31, 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 $ 37,207 $ 462,793 1.61% — 1.61% 12/19/2022 (3) (4) $ 82,966 $ 82,966 Committed Loan Repurchase Facility 100,000 45,290 54,710 2.06% — 2.81% 2/26/2022 (5) (6) 62,972 62,972 Committed Loan Repurchase Facility 300,000 75,837 224,163 1.86% — 2.86% 12/19/2022 (7) (8) 127,926 127,926 Committed Loan Repurchase Facility 100,000 — 100,000 —% — —% 4/30/2024 (9) (4) — — Committed Loan Repurchase Facility 100,000 26,183 73,817 2.23% — 2.23% 1/3/2023 (3) (4) 48,720 48,720 Committed Loan Repurchase Facility 100,000 — 100,000 —% — —% 10/21/2022 (10) (11) — — Total Committed Loan Repurchase Facilities 1,200,000 184,517 1,015,483 322,584 322,584 Committed Securities Repurchase Facility(2) 862,794 44,139 818,655 0.65% — 1.05% 5/27/2023 N/A (12) 50,522 50,522 Uncommitted Securities Repurchase Facility N/A (13) 215,921 N/A (13) 0.54% — 2.06% 1/2022 - 6/2022 N/A (12) 242,629 242,629 (14) Total Repurchase Facilities 1,600,000 444,577 1,371,344 615,735 615,735 Revolving Credit Facility 266,430 — 266,430 —% — —% 2/11/2022 (15) N/A (16) N/A (16) N/A (16) Mortgage Loan Financing 690,927 693,797 — 3.75% — 6.16% 2022 - 2031(17) N/A (18) 805,007 1,033,372 (19) Secured Financing Facility 136,444 132,447 (20) — 10.75% — 10.75% 5/6/2023 N/A (21) 244,399 244,553 CLO Debt 1,064,365 1,054,774 (22) — 1.66% — 1.75% 2024 - 2026(23) N/A (4) 1,299,116 1,299,116 Borrowings from the FHLB 263,000 263,000 — 0.36% — 2.74% 2022 - 2024 N/A (24) 301,792 301,792 (25) Senior Unsecured Notes 1,649,794 1,631,108 (26) — 4.25% — 5.25% 2025 - 2029 N/A N/A (27) N/A (27) N/A (27) Total Debt Obligations, Net $ 5,670,960 $ 4,219,703 $ 1,637,774 $ 3,266,049 $ 3,494,568 (1) LIBOR rates in effect as of December 31, 2021 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) Three 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 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 $1.9 million and an unamortized discount of $2.1 million related to the Purchase Right (described in detail under Secured Financing Facility below) at December 31, 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. (22) Presented net of unamortized debt issuance costs of $9.6 million at December 31, 2021. (23) Represents the estimated maturity date based on the remaining reinvestment period and underlying loan maturities. (24) Investment grade commercial real estate securities and cash. It does not include the first mortgage commercial real estate loans collateralizing such securities. (25) Includes $7.5 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 $18.7 million at December 31, 2021. (27) The obligations under the senior unsecured notes are guaranteed by the Company and certain of its subsidiaries. Committed Loan and Securities Repurchase Facilities The Company has entered into seven committed master repurchase agreements, as outlined in the March 31, 2022 table above, totaling $1.3 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 $900 million less approved commitments under that bank’s loan repurchase agreement. 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 was in compliance with all covenants as of March 31, 2022 and December 31, 2021. The Company has the option to extend some of the current facilities subject to a number of conditions, including satisfaction of certain notice requirements, the absence of an event of default, and the absence of a margin deficit, all as defined in the repurchase facility agreements. The lenders have sole discretion with respect to the inclusion of collateral in these facilities and the determination of 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. Revolving Credit Facility The Company’s Revolving Credit Facility provides for an aggregate maximum borrowing amount of $266.4 million, including a $25.0 million sublimit for the issuance of letters of credit. The Revolving Credit Facility is available on a revolving basis to finance the Company’s working capital needs and for general corporate purposes. On November 25, 2019, the Company amended the Revolving Credit Facility to add two additional one-year extension options, extending the final maturity date to February 2025. The amendment also provided for a reduction of the interest rate to one-month LIBOR plus 3.00% upon the upgrade of the Company’s credit ratings, which occurred in January 2020. As of March 31, 2022, interest on the Revolving Credit Facility is one-month LIBOR plus 3.00% per annum payable monthly in arrears. As of March 31, 2022, the Company had no outstanding borrowings on the Revolving Credit Facility, but still maintains the ability to draw $266.4 million. The obligations under the Revolving Credit Facility are guaranteed by the Company and certain of its subsidiaries. The Revolving Credit Facility is secured by a pledge of the shares of (or other ownership or equity interests in) certain subsidiaries to the extent the pledge is not restricted under existing regulations, law or contractual obligations. The Company is subject to customary affirmative covenants and negative covenants, including limitations on the incurrence of additional debt, liens, restricted payments, sales of assets and affiliate transactions. In addition, the Company is required to comply with financial covenants relating to minimum net worth, maximum leverage, minimum liquidity, and minimum fixed charge coverage, consistent with our other credit facilities. The Company’s ability to borrow is dependent on, among other things, compliance with the financial covenants. The Revolving Credit Facility contains customary events of default, including non-payment of principal or interest, fees or other amounts, failure to perform or observe covenants, cross-default to other indebtedness, the rendering of judgments against the Company or certain of our subsidiaries to pay certain amounts of money and certain events of bankruptcy or insolvency. Debt Issuance Costs As of March 31, 2022 and December 31, 2021, the amount of unamortized costs relating to our master repurchase facilities and Revolving Credit Facility were $3.5 million and $2.9 million, respectively, and are included in other assets in the consolidated balance sheets. Uncommitted Securities Repurchase Facilities The Company has also entered into multiple uncommitted master repurchase agreements collateralized by real estate securities with several counterparties. The borrowings under these agreements have typical advance rates between 75% and 95% of the fair value of collateral, which is primarily AAA-rated securities. Mortgage Loan Financing These non-recourse debt agreements provide for secured financing at rates ranging from 3.75% to 6.16%, and, as of March 31, 2022, have anticipated maturity dates between 2022-2031, with the earliest expected in May 2022. These loans have carrying amounts of $648.7 million and $693.8 million, net of unamortized premiums of $2.8 million and $3.2 million as of March 31, 2022 and December 31, 2021, 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 $0.3 million and $0.3 million of premium amortization, which decreased interest expense for the three months ended March 31, 2022 and 2021, respectively. The mortgage loans are collateralized by real estate and related lease intangibles, net, of $749.0 million and $805.0 million as of March 31, 2022 and December 31, 2021, respectively. During the three months ended March 31, 2022 and March 31, 2021, the Company did not execute any term debt agreements to finance properties in its real estate portfolio. Secured Financing Facility On April 30, 2020, the Company entered into a strategic financing arrangement with a U.S. multinational corporation (the “Lender”), under which the Lender provided the Company with $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, matures 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 $2.0 million remains as of March 31, 2022. 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. 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 was treated as a discount to the debt and amortized over the expected maturity of the Purchase Right to interest expense. included in debt obligations on its consolidated balance sheets, net of unamortized debt issuance costs of $0.3 million and a $0.3 million unamortized discount related to the Purchase Right. Collateralized Loan Obligations (“CLO”) Debt On July 13, 2021, a consolidated subsidiary of the Company completed a privately-marketed CLO transaction, which generated $498.2 million of gross proceeds to Ladder, financing $607.5 million of loans (“Contributed July 2021 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 consent rights over major decisions with respect to the servicing of the Contributed July 2021 Loans, including the right to appoint and replace the special servicer under the CLO. The CLO is a VIE and the Company is the primary beneficiary and, therefore, consolidated the VIE - Refer to Note 10, Consolidated Variable Interest Entities. On December 2, 2021, a consolidated subsidiary of the Company completed a privately marketed CLO transaction, which generated $566.2 million of gross proceeds to Ladder, financing $729.4 million of loans (“Contributed December 2021 Loans”) at a maximum 77.6% advance rate on a matched term, non-mark-to-market and non-recourse basis. A consolidated subsidiary of the Company retained an 15.6% subordinate and controlling interest in the CLO. The Company also held two additional tranches as investments totaling 6.8% interest in the CLO. The Company retained consent rights over major decisions with respect to the servicing of the Contributed December 2021 Loans, including the right to appoint and replace the special servicer under the CLO. The CLO is a VIE and the Company is the primary beneficiary and, therefore, consolidated the VIE - Refer to Note 10, Consolidated Variable Interest Entities. As of March 31, 2022, the Company had $1.1 billion of matched term, non-mark-to-market and non-recourse CLO debt included in debt obligations on its consolidated balance sheets, which includes unamortized debt issuance costs of $9.0 million. 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 March 31, 2022, Tuebor had $263.0 million of borrowings outstanding, with terms of 0.44 years to 2.5 years (with a weighted average of 1.7 year), and interest rates of 0.61% to 2.74% (with a weighted average of 1.12%). As of March 31, 2022, collateral for the borrowings was comprised of $262.2 million of CMBS and U.S. Agency securities (with advance rates of 71.7% to 95.7%) and $36.7 million of restricted 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 $1.2 billion of Tuebor’s member’s capital was restricted from transfer via dividend to Tuebor’s parent without prior approval of state insurance regulators at March 31, 2022. 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 March 31, 2022, the Company had $1.6 billion of unsecured corporate bonds outstanding. These unsecured financings were comprised of $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 2025 Notes and the 2027 Notes, the “Notes”). 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 was in compliance with all covenants of the Notes as of March 31, 2022 and 2021. Unamortized debt issuance costs of $17.9 million and $18.7 million are included in senior unsecured notes as of March 31, 2022 and December 31, 2021, respectively, in accordance with GAAP. 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 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 March 31, 2022, 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. On February 26, 2020, the board of the directors authorized the Company to repurchase any or all of the 2027 Notes from time to time without further approval. As of March 31, 2022, 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 days’ notice, at a redemption price defined in the indenture governing the 2029 Notes, plus accrued and unpaid interest, if any, to the redemption date. Net proceeds of the offering were used for general corporate purposes, including funding the Company’s pipeline of new loans, investments in its core business lines and repayment of indebtedness. On June 24, 2021, the board of the directors authorized the Company to repurchase any or all of the 2029 Notes from time to time without further approval. As of March 31, 2022, the remaining $650.0 million in aggregate principal amount of the 2029 Notes is due June 15, 2029. Combined Maturity of Debt Obligations The following schedule reflects the Company’s contractual payments under all borrowings by maturity ($ in thousands): Period ending December 31, Borrowings by 2022 $ 419,166 2023 250,586 2024 594,019 2025 526,006 2026 26,424 Thereafter 1,487,611 Subtotal 3,303,812 Debt issuance costs included in senior unsecured notes (17,889) Debt issuance costs included in secured financing facility (257) Discount on secured financing facility related to Purchase Right (298) Debt issuance costs included in mortgage loan financing (255) Premiums included in mortgage loan financing(3) 2,796 Total (2) $ 3,287,909 (1) The allocation of repayments under our committed loan repurchase facilities and Secured Financing Facility is based on the earlier of (i) the maturity date of each agreement, or (ii) the maximum maturity date of the collateral loans, assuming all extension options are exercised by the borrower. (2) Total does not include $1.1 billion of consolidated CLO debt obligations and the related debt issuance costs of $9.0 million, as the satisfaction of these liabilities will be paid through cash flow from loan collateral including amortization and will not require cash outlays from us. (3) Represents 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 $871.4 million of the total equity is restricted from payment as a dividend by the Company at March 31, 2022. The Company was in compliance with all covenants described in the financial statements as of March 31, 2022. LIBOR Transition Specifically, we have implemented or are in the process of implementing fallback language for our LIBOR-based bi-lateral committed repurchase facilities and revolving credit facility, including adjustments as applicable to maintain the anticipated economic terms of the existing contracts. As of March 31, 2022, 84.9% and 15.1% of our floating rate debt obligations bear interest indexed to LIBOR and Term SOFR, respectively. We continue to monitor the transition guidance provided by the ARRC, the International Swaps and Derivatives Association, Inc., the Financial Accounting Standards Board and other relevant regulators, agencies and industry working groups, and we continue to engage with clients, lenders, market participants and other industry leaders as the transition from LIBOR progresses. |
DERIVATIVE INSTRUMENTS
DERIVATIVE INSTRUMENTS | 3 Months Ended |
Mar. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE INSTRUMENTS | 8. DERIVATIVE INSTRUMENTS The Company uses derivative instruments primarily to economically manage the fair value variability of fixed rate assets caused by interest rate fluctuations and overall portfolio market risk. The following is a breakdown of the derivatives outstanding as of March 31, 2022 and December 31, 2021 ($ in thousands): March 31, 2022 Fair Value Remaining Contract Type Notional Asset(1) Liability(1) Caps 1 Month LIBOR $ 15,050 $ 55 $ — 2.44 Futures 5-year Swap 25,400 42 — 0.25 10-year Swap 83,800 137 — 0.25 Total futures 109,200 179 — Total derivatives $ 124,250 $ 234 $ — (1) Shown as derivative instruments, at fair value, in the accompanying consolidated balance sheets. December 31, 2021 Fair Value Remaining Contract Type Notional Asset(1) Liability(1) Caps 1 Month LIBOR $ 84,621 $ 60 $ — 0.57 Futures 5-year Swap 6,500 76 — 0.25 10-year Swap 23,000 266 — 0.25 Total futures 29,500 342 — Total derivatives $ 114,121 $ 402 $ — (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 income for the three months ended March 31, 2022 and 2021($ in thousands): Three Months Ended March 31, 2022 Contract Type Unrealized Realized Net Result Caps $ (6) $ — $ (6) Futures (162) 3,303 3,141 Total $ (168) $ 3,303 $ 3,135 Three Months Ended March 31, 2021 Contract Type Unrealized Realized Net Result Futures $ 2 $ 4,769 $ 4,771 Total $ 2 $ 4,769 $ 4,771 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. Variation margin pledged on the Company’s centrally cleared interest rate futures is settled against the realized results of these futures. The Company’s counterparties held $0.8 million and $0.5 million of cash margin as collateral for derivatives as of March 31, 2022, and December 31, 2021, respectively, which is included in restricted cash in the consolidated balance sheets. |
OFFSETTING ASSETS AND LIABILITI
OFFSETTING ASSETS AND LIABILITIES | 3 Months Ended |
Mar. 31, 2022 | |
Offsetting [Abstract] | |
OFFSETTING ASSETS AND LIABILITIES | 9. OFFSETTING ASSETS AND LIABILITIES The following tables present both gross information and net information about derivatives and other instruments eligible for offset in the statement of financial position as of March 31, 2022 and December 31, 2021. The Company’s accounting policy is to record derivative asset and liability positions on a gross basis; therefore, the following tables present the gross derivative asset and liability positions recorded on the balance sheets, while also disclosing the eligible amounts of financial instruments and cash collateral to the extent those amounts could offset the gross amount of derivative asset and liability positions. The actual amounts of collateral posted by or received from counterparties may be in excess of the amounts disclosed in the following tables as the following only disclose amounts eligible to be offset to the extent of the recorded gross derivative positions. The following table represents offsetting financial assets and derivative assets as of March 31, 2022 ($ in thousands): Description Gross amounts of Gross amounts Net amounts of Gross amounts not offset in the Net amount Financial Cash collateral Derivatives $ 234 $ — $ 234 $ — $ (805) $ 234 Total $ 234 $ — $ 234 $ — $ (805) $ 234 The following table represents offsetting of financial liabilities and derivative liabilities as of March 31, 2022 ($ in thousands): Description Gross amounts of Gross amounts Net amounts of Gross amounts not offset in the Net amount Financial Cash collateral Repurchase agreements $ 634,708 $ — $ 634,708 $ 634,708 $ 3,178 $ 631,531 Total $ 634,708 $ — $ 634,708 $ 634,708 $ 3,983 $ 630,726 (1) Included in restricted cash on consolidated balance sheets. The following table represents offsetting of financial assets and derivative assets as of December 31, 2021 ($ in thousands): Description Gross amounts of Gross amounts Net amounts of Gross amounts not offset in the Net amount Financial Cash collateral Derivatives $ 402 $ — $ 402 $ — $ (526) $ 402 Total $ 402 $ — $ 402 $ — $ (526) $ 402 (1) Included in restricted cash on consolidated balance sheets. The following table represents offsetting of financial liabilities and derivative liabilities as of December 31, 2021 ($ in thousands): Description Gross amounts of Gross amounts Net amounts of Gross amounts not offset in the Net amount Financial Cash collateral Repurchase agreements $ 444,577 $ — $ 444,577 $ 444,577 $ 1,975 $ 442,603 Total $ 444,577 $ — $ 444,577 $ 444,577 $ 1,975 $ 442,603 (1) Included in restricted cash on consolidated balance sheets. |
CONSOLIDATED VARIABLE INTEREST
CONSOLIDATED VARIABLE INTEREST ENTITIES | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
CONSOLIDATED VARIABLE INTEREST ENTITIES | 10. CONSOLIDATED VARIABLE INTEREST ENTITIES The Company consolidates on its balance sheet two CLOs that are considered VIEs as of March 31, 2022 and December 31, 2021 ($ in thousands): March 31, 2022 December 31, 2021 Notes 3 & 7 Restricted cash $ — $ 369 Mortgage loan receivables held for investment, net, at amortized cost 1,310,873 1,299,116 Accrued interest receivable 4,699 4,587 Other assets 16,264 26,636 Total assets $ 1,331,836 $ 1,330,708 Debt obligations, net $ 1,055,402 $ 1,054,774 Accrued expenses 1,007 1,218 Other liabilities 64 65 Total liabilities 1,056,473 1,056,057 Net equity in VIEs (eliminated in consolidation) 275,363 274,651 Total equity 275,363 274,651 Total liabilities and equity $ 1,331,836 $ 1,330,708 |
EQUITY STRUCTURE AND ACCOUNTS
EQUITY STRUCTURE AND ACCOUNTS | 3 Months Ended |
Mar. 31, 2022 | |
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 March 31, 2022. As of March 31, 2022, the Company held a 100% interest in LCFH. Stock Repurchases On August 4, 2021, the board of directors authorized the repurchase of $50.0 million of the Company’s Class A common stock from time to time without further approval. This authorization increased the remaining authorization per the October 30, 2014 authorization from $35.0 million to $50.0 million. 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 March 31, 2022, the Company has a remaining amount available for repurchase of $43.5 million, which represents 2.9% in the aggregate of its outstanding Class A common stock, based on the closing price of $11.87 per share on such date. The following table is a summary of the Company’s repurchase activity of its Class A common stock during the three months ended March 31, 2022 and 2021 ($ in thousands): Shares Amount(1) Authorizations remaining as of December 31, 2021 $ 44,122 Repurchases paid 55,000 (611) Repurchases unsettled — Authorizations remaining as of March 31, 2022 $ 43,511 (1) Amount excludes commissions paid associated with share repurchases. Shares Amount(1) Authorizations remaining as of December 31, 2020 $ 38,102 Additional authorizations — Repurchases paid 20,000 (214) Repurchases unsettled — Authorizations remaining as of March 31, 2021 $ 37,888 (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 three months ended March 31, 2022 and 2021: Declaration Date Dividend per Share March 15, 2022 $ 0.20 Total $ 0.20 March 15, 2021 $ 0.20 Total $ 0.20 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 three months ended March 31, 2022 and 2021 ($ in thousands): Accumulated Other Comprehensive Income (Loss) Accumulated Other Comprehensive Income (Loss) of Noncontrolling Interests Total Accumulated Other Comprehensive Income (Loss) December 31, 2021 $ (4,112) $ (2) $ (4,114) Other comprehensive income (loss) (6,641) — (6,641) March 31, 2022 $ (10,753) $ (2) $ (10,755) 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) 6,849 — 6,849 March 31, 2021 $ (3,614) $ (2) $ (3,616) |
NONCONTROLLING INTERESTS
NONCONTROLLING INTERESTS | 3 Months Ended |
Mar. 31, 2022 | |
Noncontrolling Interest [Abstract] | |
NONCONTROLLING INTERESTS | 12. NONCONTROLLING INTERESTS Noncontrolling Interests in Consolidated Joint Ventures As of March 31, 2022, the Company consolidates five ventures and in each, there are different 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 $80.4 million, 11 office buildings in Richmond, VA with a book value of $69.2 million, a single-tenant office building in Oakland County, MI with a book value of $8.4 million, an apartment complex in Miami, FL with a book value of $37.4 million, and an apartment complex in Stillwater, OK with a book value of $18.0 million. The Company makes distributions and allocates income from these ventures to the noncontrolling interests in accordance with the terms of the respective governing agreements. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | 13. EARNINGS PER SHARE The Company’s net income (loss) and weighted average shares outstanding for the three months ended March 31, 2022 and 2021 consist of the following: Three Months Ended March 31, ($ in thousands except share amounts) 2022 2021 Basic and Diluted Net income (loss) available for Class A common shareholders $ 19,032 $ 192 Weighted average shares outstanding Basic 124,305,943 123,974,970 Diluted 125,478,001 124,324,683 The calculation of basic and diluted net income (loss) per share amounts for the three months ended March 31, 2022 and 2021 consist of the following: Three Months Ended March 31, (In thousands except share and per share amounts) 2022 2021 Basic Net Income (Loss) Per Share of Class A Common Stock Numerator : Net income (loss) attributable to Class A common shareholders $ 19,032 $ 192 Denominator : Weighted average number of shares of Class A common stock outstanding 124,305,943 123,974,970 Basic net income (loss) per share of Class A common stock $ 0.15 $ — Diluted Net Income (Loss) Per Share of Class A Common Stock Numerator: Net income (loss) attributable to Class A common shareholders $ 19,032 $ 192 Diluted net income (loss) attributable to Class A common shareholders 19,032 192 Denominator: Basic weighted average number of shares of Class A common stock outstanding 124,305,943 123,974,970 Add - dilutive effect of: Incremental shares of unvested Class A restricted stock(1) 1,172,058 349,713 Diluted weighted average number of shares of Class A common stock outstanding 125,478,001 124,324,683 Diluted net income (loss) per share of Class A common stock $ 0.15 $ — (1) The Company is using the treasury stock method. |
STOCK BASED AND OTHER COMPENSAT
STOCK BASED AND OTHER COMPENSATION PLANS | 3 Months Ended |
Mar. 31, 2022 | |
Share-based Payment Arrangement [Abstract] | |
STOCK BASED AND OTHER COMPENSATION PLANS | 14. STOCK BASED AND OTHER COMPENSATION PLANS Summary of Stock and Shares Unvested/Outstanding The following table summarizes the impact on the consolidated statements of income of the various stock based compensation plans and other compensation plans ($ in thousands): Three Months Ended March 31, 2022 2021 Stock Based Compensation Expense $ 20,412 $ 5,276 Phantom Equity Investment Plan — 22 Total Stock Based Compensation Expense(1) $ 20,412 $ 5,298 (1) Variance between three months ended March 31, 2022 and March 31, 2021 is primarily due to timing of 2021 and 2022 employee stock and bonus compensation. The majority of the stock and bonus compensation for the 2020 compensation year was granted in December of 2020, and stock and bonus compensation for the 2021 compensation year was granted during the three months ended March 31, 2022. A summary of the grants is presented below: Three Months Ended March 31, 2022 2021 Number Weighted Number Weighted Grants - Class A Common Stock 2,843,340 $ 11.89 747,713 $ 9.81 The table below presents the number of unvested shares of Class A common stock and outstanding stock options at March 31, 2022 and changes during 2022 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, 2021 2,145,380 623,788 Granted 2,843,340 — Vested (2,394,618) — Forfeited (66,026) — Expired — — Nonvested/Outstanding at March 31, 2022 2,528,076 623,788 Exercisable at March 31, 2022 (1) 623,788 (1) The weighted-average exercise price of outstanding options, warrants and rights is $14.84 at March 31, 2022. At March 31, 2022 there was $23.6 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 28.7 months, with a weighted-average remaining vesting period of 36 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 2022 with respect to 2021 Performance For 2021 performance, certain employees received stock-based incentive equity in January 2022. Fair value for all restricted and unrestricted stock grants was calculated using the average closing stock price for the five business days prior to the grant date. Restricted stock subject to time-based vesting criteria will vest in three installments on February 18 of each of 2023, 2024 and 2025, subject to continued employment on the applicable vesting dates. 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, 2022, 2023 and 2024, 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. The probability of meeting the performance outcome is assessed quarterly. On January 31, 2022, in connection with 2021 compensation, annual stock awards were granted to management employees (each, a “Management Grantee”), with an aggregate fair value of $18 million, which represents 1,517,627 shares of Class A common stock. The grant to Mr. Harris and approximately 2/3 of the grants to Ms. McCormack and Mr. Perelman were unrestricted. The other 1/3 of incentive equity granted to Ms. McCormack and Mr. Perelman is restricted stock subject to attainment of the Performance Target for the applicable years and is also subject to the Catch-Up Provision described above. The grants to Mr. Miceli and Ms. Porcella (a total of 210,662 shares with an aggregate fair value of $2.5 million) are subject to the same time-based and performance-based vesting described below for Non-Management Grantees. On January 31, 2022, in connection with 2021 compensation, annual stock awards were granted to certain non-management employees (“Non-Management Grantees”) with an aggregate fair value of $15.4 million, which represents 1,293,853 shares of Class A common stock. For the awards granted to Mr. Miceli, Ms. Porcella and certain Non-Management Grantees (a total of 1,254,085 shares), approximately 1/3 of the awards were unrestricted, with another 1/3 of the awards subject to time-based vesting criteria, and the remaining 1/3 subject to attainment of the Performance Target for the applicable years. The 1/3 of awards subject to attainment of the Performance Target is also subject to the Catch-Up Provision. For the awards granted to other Non-Management Grantees (a total of 250,430 shares), 1/2 of the awards is subject to time-based vesting criteria, and the remaining 1/2 is subject to attainment of the Performance Target for the applicable years. The 1/2 of awards subject to attainment of the Performance Target is also subject to the Catch-Up Provision. 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 Catch-Up Provision and the Performance Waiver, defined 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. 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. The probability of meeting the performance outcome is assessed quarterly. 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. In the first quarter, the 2021 Performance Waiver applied to 39 Ladder employees. Other 2022 Restricted Stock Awards On February 18, 2022, certain members of the board of directors each received annual restricted stock awards with a grant date fair value of $0.4 million, representing 31,860 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 Upon a change in control (as defined in the respective award agreements), restricted stock awards to Mr. Miceli, Ms. McCormack and Mr. Perelman will become fully vested if (1) such Management Grantee continues to be employed through the closing of the change in control or (2) after the signing of definitive documentation related to the change in control, but prior to its closing, such Management Grantee’s employment is terminated without cause or due to death or disability or the Management Grantee resigns for Good Reason, as defined in each Management Grantee’s employment agreement. 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. In the event Ms. Porcella or a Non-Management Grantee is terminated by the Company without cause within six months of certain changes in control, 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. Bonus Payments For the three months ended March 31, 2022, total bonus compensation was $5.2 million. During the year ended December 31, 2021, the Company recorded $11.0 million of compensation expense related to cash bonuses that were paid in January 2022. For the three months ended March 31, 2021, the Company paid $1.1 million compensation expense related to bonuses accrued for during the year ended December 31, 2020. |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | 15. FAIR VALUE OF FINANCIAL INSTRUMENTS Fair value is based upon internal models, using market quotations, broker quotations, counterparty quotations or pricing services quotations, which provide valuation estimates based upon reasonable market order indications and are subject to significant variability based on market conditions, such as interest rates, credit spreads and market liquidity. The fair value of the mortgage loan receivables held for sale is based upon a securitization model utilizing market data from recent securitization spreads and pricing. Fair Value Summary Table The carrying values and estimated fair values of the Company’s financial instruments, which are both reported at fair value on a recurring basis (as indicated) or amortized cost/par, at March 31, 2022 and December 31, 2021 are as follows ($ in thousands): March 31, 2022 Weighted Average Principal Amount Amortized Cost Basis/Purchase Price Fair Value Fair Value Method Yield Remaining Assets: CMBS(1) $ 659,685 $ 659,097 $ 648,042 Internal model, third-party inputs 1.90 % 1.81 CMBS interest-only(1) 1,287,812 (2) 13,952 14,253 Internal model, third-party inputs 4.57 % 1.76 GNMA interest-only(3) 54,895 (2) 407 451 Internal model, third-party inputs 5.29 % 3.55 Agency securities(1) 52 53 53 Internal model, third-party inputs 2.78 % 1.92 Equity securities(3) N/A 148 162 Observable market prices N/A N/A 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(4) 3,887,434 3,857,464 3,797,372 Discounted Cash Flow(5) 5.45 % 1.68 Mortgage loan receivables held for sale 54,850 53,901 53,901 Internal model, third-party inputs(6) 4.44 % 9.91 FHLB stock(6) 11,835 11,835 11,835 (6) 3.00 % N/A Nonhedge derivatives(1)(7) 124,250 234 234 Counterparty quotations N/A 0.76 Liabilities: Repurchase agreements - short-term 621,745 621,745 621,745 Discounted Cash Flow(8) 1.34 % 0.54 Repurchase agreements - long-term 12,962 12,962 12,962 Discounted Cash Flow(9) 0.93 % 1.15 Mortgage loan financing 646,126 648,666 662,672 Discounted Cash Flow 4.85 % 3.0 Secured financing facility 110,185 109,630 107,883 Discounted Cash Flow(8) 9.91 % 1.10 CLO debt 1,064,365 1,055,402 1,055,402 Discounted Cash Flow(9) 2.14 % 16.68 Borrowings from the FHLB 263,000 263,000 263,303 Discounted Cash Flow 0.96 % 1.71 Senior unsecured notes 1,649,794 1,631,905 1,589,787 Internal model, third-party inputs 4.66 % 5.50 (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) Balance does not include impact of allowance for current expected credit losses of $32.3 million at March 31, 2022. (5) 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. (6) 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. (7) The outstanding face amount of the nonhedge derivatives represents the notional amount of the underlying contracts. (8) 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. (9) For repurchase agreements - long term 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, 2021 Weighted Average Principal Amount Amortized Cost Basis/Purchase Price Fair Value Fair Value Method Yield Remaining Assets: CMBS(1) $ 691,402 $ 691,026 $ 686,293 Internal model, third-party inputs 1.57 % 2.06 CMBS interest-only(1) 1,302,551 (2) 15,268 15,885 Internal model, third-party inputs 5.67 % 1.88 GNMA interest-only(3) 59,075 (2) 518 559 Internal model, third-party inputs 4.97 % 3.64 Agency securities(1) 557 560 563 Internal model, third-party inputs 1.58 % 0.69 Mortgage loan receivables held for investment, net, at amortized cost(4) 3,581,919 3,553,737 3,494,254 Discounted Cash Flow(5) 5.65 % 1.76 FHLB stock(6) 11,835 11,835 11,835 (6) 3.25 % N/A Nonhedge derivatives(1)(7) 114,121 402 402 Counterparty quotations N/A 0.30 Liabilities: Repurchase agreements - short-term 418,394 418,394 418,394 Discounted Cash Flow(8) 0.89 % 0.46 Repurchase agreements - long-term 26,183 26,183 26,183 Discounted Cash Flow(9) 2.21 % 1.01 Mortgage loan financing 690,927 693,797 709,695 Discounted Cash Flow 4.83 % 3.3 Secured financing facility 136,444 132,447 133,389 Discounted Cash Flow(8) 10.75 % 1.35 CLO debt 1,064,365 1,054,774 1,054,774 Discounted Cash Flow(9) 2.04 % 16.92 Borrowings from the FHLB 263,000 263,000 263,414 Discounted Cash Flow 0.91 % 1.95 Senior unsecured notes 1,649,794 1,631,108 1,677,039 Internal model, third-party inputs 4.66 % 5.74 (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) Balance does not include impact of allowance for current expected credit losses of $31.8 million at December 31, 2021. (5) Fair value for floating rate mortgage loan receivables, held for investment is estimated to approximate the outstanding face amount given the short interest rate reset risk (30 days) and no significant change in credit risk. Fair value for fixed rate mortgage loan receivables, held for investment is measured using a discounted cash flow model. (6) Fair value of the FHLB stock approximates outstanding face amount as the Company’s captive insurance subsidiary is restricted from trading the stock and can only put the stock back to the FHLB, at the FHLB’s discretion, at par. (7) The outstanding face amount of the nonhedge derivatives represents the notional amount of the underlying contracts. (8) Fair value for repurchase agreement liabilities - short term borrowings under the Secured Financing Facility and borrowings under the Revolving Credit Facility is estimated to approximate carrying amount primarily due to the short interest rate reset risk (30 days) of the financings and the high credit quality of the assets collateralizing these positions. If the collateral is determined to be impaired, the related financing would be revalued accordingly. There are no impairments on any positions. (9) For repurchase agreements - long term and CLO debt, the carrying value approximates the fair value discounting the expected cash flows at current market rates. If the collateral is determined to be impaired, the related financing would be revalued accordingly. There are no impairments on any positions. The following table summarizes the Company’s financial assets and liabilities, which are both reported at fair value on a recurring basis (as indicated) or amortized cost/par, at March 31, 2022 and December 31, 2021 ($ in thousands): March 31, 2022 Financial Instruments Reported at Fair Value on Consolidated Statements of Financial Condition Principal Fair Value Level 1 Level 2 Level 3 Total Assets: CMBS(1) $ 649,626 $ — $ — $ 638,403 $ 638,403 CMBS interest-only(1) 1,278,708 (2) — — 13,743 13,743 GNMA interest-only(3) 54,895 (2) — — 451 451 Agency securities(1) 52 — — 53 53 Equity securities N/A 162 — — 162 Nonhedge derivatives(4) 124,250 — 234 — 234 $ 162 $ 234 $ 652,650 $ 653,046 Financial Instruments Not Reported at Fair Value on Consolidated Statements of Financial Condition Principal 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(5) $ 3,887,434 $ — $ — $ 3,797,372 $ 3,797,372 Mortgage loan receivable held for sale(7) 54,850 — — 53,901 53,901 CMBS(6) 10,059 — — 9,639 9,639 CMBS interest-only(6) 9,104 — — 509 509 FHLB stock 11,835 — — 11,835 11,835 $ — $ — $ 3,873,256 $ 3,873,256 Liabilities: Repurchase agreements - short-term 621,745 $ — $ — $ 621,745 $ 621,745 Repurchase agreements - long-term 12,962 — — 12,962 12,962 Mortgage loan financing 646,126 — — 662,672 662,672 Secured financing facility 110,185 — — 107,883 107,883 CLO debt 1,064,365 — — 1,055,402 1,055,402 Borrowings from the FHLB 263,000 — — 263,303 263,303 Senior unsecured notes 1,649,794 — — 1,589,787 1,589,787 $ — $ — $ 4,313,754 $ 4,313,754 (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) Balance does not include impact of allowance for current expected credit losses of $32.3 million at March 31, 2022. (6) 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. (7) A lower of cost or market adjustment was recorded as of March 31, 2022. December 31, 2021 Financial Instruments Reported at Fair Value on Consolidated Statements of Financial Condition Principal Fair Value Level 1 Level 2 Level 3 Total Assets: CMBS(1) $ 681,076 $ — $ — $ 676,398 $ 676,398 CMBS interest-only(1) 1,293,181 (2) — — 15,344 15,344 GNMA interest-only(3) 59,075 (2) — — 559 559 Agency securities(1) 557 — — 563 563 Nonhedge derivatives(4) 114,121 — 402 — 402 $ — $ 402 $ 692,864 $ 693,266 Financial Instruments Not Reported at Fair Value on Consolidated Statements of Financial Condition Principal 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(5) $ 3,581,920 $ — $ — $ 3,494,254 $ 3,494,254 CMBS(6) 10,326 — — 9,894 9,894 CMBS interest-only(6) 9,370 — — 541 541 FHLB stock 11,835 — — 11,835 11,835 $ — $ — $ 3,516,524 $ 3,516,524 Liabilities: Repurchase agreements - short-term 418,394 $ — $ — $ 418,394 $ 418,394 Repurchase agreements - long-term 26,183 — — 26,183 26,183 Mortgage loan financing 690,927 — — 709,695 709,695 Secured financing facility 136,444 — — 133,389 133,389 CLO debt 1,064,365 — — 1,054,774 1,054,774 Borrowings from the FHLB 263,000 — — 263,414 263,414 Senior unsecured notes 1,649,794 — — 1,677,039 1,677,039 $ — $ — $ 4,282,888 $ 4,282,888 (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) Balance does not include impact of allowance for current expected credit losses of $31.8 million at December 31, 2021. (6) Restricted securities which are designated as risk retention securities under the Dodd-Frank Act and are therefore subject to transfer restrictions over the term of the securitization trust, which are classified as held-to-maturity and reported at amortized cost. The following table summarizes changes in Level 3 financial instruments reported at fair value on the consolidated statements of financial condition for the three months ended March 31, 2022 and 2021 ($ in thousands): Three Months Ended March 31, Level 3 2022 2021 Balance at January 1, $ 692,864 $ 1,046,569 Transfer from level 2 — — Purchases 29,603 40,016 Sales (4,261) (329,062) Paydowns/maturities (57,489) (10,512) Amortization of premium/discount (1,326) (2,013) Unrealized gain/(loss) (6,638) 6,829 Realized gain/(loss) on sale (103) 579 Balance at March 31, $ 652,650 $ 752,406 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): March 31, 2022 Financial Instrument Carrying Value Valuation Technique Unobservable Input Minimum Weighted Average Maximum CMBS(1) $ 638,403 Discounted cash flow Yield (4) — % 1.83 % 17.93 % Duration (years)(5) 0 1.80 4.78 CMBS interest-only(1) 13,743 (2) Discounted cash flow Yield (4) (16.65) % 4.49 % 11.17 % Duration (years)(5) 0 1.67 2.41 Prepayment speed (CPY)(5) 100.00 100.00 100.00 GNMA interest-only(3) 451 (2) Discounted cash flow Yield (4) — % 5.29 % 10.00 % Duration (years)(5) 0 2.68 5.22 Prepayment speed (CPJ)(5) 5 17.42 35 Agency securities(1) 53 Discounted cash flow Yield (4) 2.78 % 2.78 % 2.78 % Duration (years)(5) 0 0 0 Total $ 652,650 December 31, 2021 Financial Instrument Carrying Value Valuation Technique Unobservable Input Minimum Weighted Average Maximum CMBS(1) $ 676,398 Discounted cash flow Yield (4) 0.77 % 1.51 % 5.28 % Duration (years)(5) 0 1.93 8.39 CMBS interest-only(1) 15,344 (2) Discounted cash flow Yield (4) — % 5.7 % 9.34 % Duration (years)(5) 0.03 1.81 2.58 Prepayment speed (CPY)(5) 100.00 100.00 100.00 GNMA interest-only(3) 559 (2) Discounted cash flow Yield (4) — % 4.97 % 10.00 % Duration (years)(5) 0 2.72 5.56 Prepayment speed (CPJ)(5) 5 17.41 35.00 Agency securities(1) 563 Discounted cash flow Yield (4) 1.44 % 1.58 % 2.78 % Duration (years)(5) 0 0.42 0.47 Total $ 692,864 (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 | 3 Months Ended |
Mar. 31, 2022 | |
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 for the three months ended March 31, 2022 and $(2.0) million for the three months ended March 31, 2021. As of March 31, 2022 and December 31, 2021, the Company’s net deferred tax assets (liabilities) were $(1.9) million and $(2.3) 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 $(0.4) million and $1.2 million for the three months ended March 31, 2022 and March 31, 2021, respectively. 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 March 31, 2022, the Company had a deferred tax asset of $5.8 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 March 31, 2022, the Company had $1.3 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’s tax returns are subject to audit by taxing authorities. Generally, as of March 31, 2022, the tax years 2018-2021 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 | 3 Months Ended |
Mar. 31, 2022 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | 17. RELATED PARTY TRANSACTIONS The Company has no material related party relationships to disclose. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 18. COMMITMENTS AND CONTINGENCIES Leases As of March 31, 2022, the Company had a $0.7 million lease liability and a $0.8 million right-of-use asset on its consolidated balance sheets recorded within other liabilities other assets Investments in Unconsolidated Joint Ventures The Company has made investments in various unconsolidated joint ventures. Refer to Note 6, Investment in and Advances to Unconsolidated Joint Ventures, for further details of our unconsolidated investments. The Company’s maximum exposure to loss from these investments is limited to the carrying value of our investments. Unfunded Loan Commitments As of March 31, 2022, the Company’s off-balance sheet arrangements consisted of $409.7 million of unfunded commitments on mortgage loan receivables held for investment to provide additional first mortgage loan financing over the next three years at rates to be determined at the time of funding, 52% of which additional funds relate to the occurrence of certain “good news” events, such as the owner concluding a lease agreement with a major tenant in the building or reaching some pre-determined net operating income. As of December 31, 2021, the Company’s off-balance sheet arrangements consisted of $390.1 million of unfunded commitments on mortgage loan receivables held for investment to provide additional first mortgage loan financing. |
SEGMENT REPORTING
SEGMENT REPORTING | 3 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | 19. SEGMENT REPORTING The Company has determined that it has three reportable segments based on how the chief operating decision makers review and manage the business. These reportable segments include loans, securities, and real estate. The loans segment includes mortgage loan receivables held for investment (balance sheet loans) and mortgage loan receivables held for sale (conduit loans). The securities segment is composed of all of the Company’s activities related to commercial real estate securities, which include investments in CMBS, U.S. Agency securities, corporate bonds and equity securities. The real estate segment includes net leased properties, office buildings, student housing portfolios, hotels, industrial buildings, a shopping center and condominium units. Corporate/other includes certain of the Company’s investments in joint ventures, other asset management activities and operating expenses. The Company evaluates performance based on the following financial measures for each segment ($ in thousands): Three months ended March 31, 2022 Loans Securities Real Estate (1) Corporate/Other(2) Company Interest income $ 53,120 $ 3,065 $ — $ 20 $ 56,205 Interest expense (14,283) (452) (11,479) (20,821) (47,035) Net interest income (expense) 38,837 2,613 (11,479) (20,801) 9,170 (Provision for) release of loan loss reserves (874) — — (874) Net interest income (expense) after provision for (release of) loan reserves 37,963 2,613 (11,479) (20,801) 8,296 Real estate operating income — — 26,354 — 26,354 Sale of loans, net (949) — — — (949) Realized gain (loss) on securities — (96) — — (96) Unrealized gain (loss) on equity securities — 14 — — 14 Unrealized gain (loss) on Agency interest-only securities — 3 — — 3 Realized gain on sale of real estate, net — — 29,154 — 29,154 Fee and other income 3,377 15 3,707 95 7,194 Net result from derivative transactions 2,337 804 (6) — 3,135 Earnings (loss) from investment in unconsolidated joint ventures — — 434 — 434 Total other income (loss) 4,765 740 59,643 95 65,243 Compensation and employee benefits — — — (29,864) (29,864) Operating expenses(3) 17 — — (5,525) (5,508) Real estate operating expenses — — (8,992) — (8,992) Fee expense (799) (48) (166) (975) (1,988) Depreciation and amortization — — (9,334) (8) (9,342) Total costs and expenses (782) (48) (18,492) (36,372) (55,694) Income tax (expense) benefit — — — 1,309 1,309 Segment profit (loss) $ 41,946 $ 3,305 $ 29,672 $ (55,769) $ 19,154 Total assets as of March 31, 2022 $ 3,879,040 $ 662,942 $ 853,511 $ 578,704 $ 5,974,197 Three months ended March 31, 2021 Loans Securities Real Estate (1) Corporate/Other(2) Company Interest income $ 35,892 $ 3,234 $ — $ 161 39,287 Interest expense (14,075) (832) (8,785) (22,281) (45,973) Net interest income (expense) 21,817 2,402 (8,785) (22,120) (6,686) Provision for (release of) loan loss reserves 4,251 — — — 4,251 Net interest income (expense) after provision for (release of) loan reserves 26,068 2,402 (8,785) (22,120) (2,435) Operating lease income — — 24,159 — 24,159 Realized gain (loss) on securities — 579 — — 579 Unrealized gain (loss) on Agency interest-only securities — (20) — — (20) Fee and other income 2,969 — 32 283 3,284 Net result from derivative transactions 3,043 1,728 — — 4,771 Earnings (loss) from investment in unconsolidated joint ventures — — 436 — 436 Gain (loss) on extinguishment of debt — — — — — Total other income (loss) 6,012 2,287 24,627 283 33,209 Salaries and employee benefits — — — (9,533) (9,533) Operating expenses(3) 9 — — (4,250) (4,241) Real estate operating expenses — — (6,211) — (6,211) Fee expense (1,426) (50) (123) — (1,599) Depreciation and amortization — — (9,511) (25) (9,536) Total costs and expenses (1,417) (50) (15,845) (13,808) (31,120) Income tax (expense) benefit — — — 778 778 Segment profit (loss) $ 30,663 $ 4,639 $ (3) $ (34,867) $ 432 Total assets as of December 31, 2021 $ 3,521,986 $ 703,280 $ 914,027 $ 711,959 $ 5,851,252 (1) Includes the Company’s investment in unconsolidated joint ventures that held real estate of $5.2 million and $23.2 million as of March 31, 2022 and December 2021, 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 $11.8 million as of March 31, 2022 and December 31, 2021, and the Company’s senior unsecured notes of $1.6 billion and $1.6 billion at March 31, 2022 and December 31, 2021, respectively. (3) Includes $3.0 million and $2.0 million of professional fees and $0.9 million and $0.9 million of information technology expenses for the three months ended March 31, 2022 and 2021, respectively. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Mar. 31, 2022 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | 20. SUBSEQUENT EVENTS The Company has evaluated subsequent events through the issuance date of the financial statements and determined that no additional disclosure is necessary. |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
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, 2021, 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 that 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. Refer to 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 engages 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 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. |
Recently Adopted Accounting Pronouncements | . Recent Accounting Pronouncements Pending Adoption In March 2022, the FASB issued ASU 2022-02 Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures, (“ASU 2022-02”). ASU 2022-02 eliminates the recognition and measurement guidance for troubled debt restructuring for creditors that have adopted ASC 326 and requires them to make enhanced disclosures about loan modifications for borrowers experiencing financial difficulty. Early adoption is permitted. The Company does not expect the adoption to have a material impact on the Company’s consolidated financial statements. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, (“ASU 2020-04”). ASU 2020-04 provides optional expedients and exceptions for applying GAAP to 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. 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) | 3 Months Ended |
Mar. 31, 2022 | |
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 $ 3,803,480 $ 3,773,593 5.34 % 1.7 Mezzanine loans 83,954 83,878 10.70 % 2.0 Total mortgage loans receivable 3,887,434 3,857,471 5.45 % 1.7 Allowance for credit losses N/A (32,332) Total mortgage loan receivables held for investment, net, at amortized cost 3,887,434 3,825,139 Mortgage loan receivables held for sale: First mortgage loans 54,850 53,901 4.44 % 9.9 Total $ 3,942,284 $ 3,879,040 (3) 5.44 % 1.8 (1) Includes the impact from interest rate floors. March 31, 2022 LIBOR and SOFR rates are used to calculate weighted average yield for floating rate loans. (2) Excludes non-accrual loans of $79.9 million. Refer to “Non-Accrual Status” below for further details. (3) Includes $27.4 million of deferred origination fees and other items as of March 31, 2022. Outstanding Carrying Weighted Remaining Mortgage loan receivables held for investment, net, at amortized cost: First mortgage loans $ 3,482,715 $ 3,454,654 5.50 % 1.8 Mezzanine loans 99,204 99,083 10.92 % 1.9 Total mortgage loans receivable 3,581,919 3,553,737 5.65 % 1.8 Allowance for credit losses N/A (31,752) Total mortgage loan receivables held for investment, net, at amortized cost 3,581,919 3,521,985 Total $ 3,581,919 $ 3,521,985 (3) 5.65 % 1.8 (1) Includes the impact from interest rate floors. December 31, 2021 LIBOR rates are used to calculate weighted average yield for floating rate loans. (2) Excludes non-accrual loans of $80.2 million. Refer to “Non-Accrual Status” below for further details. (3) Includes $26.0 million of deferred origination fees and other items as of December 31, 2021. |
Summary of mortgage loan receivables by loan type | For the three months ended March 31, 2022 and 2021, the activity in our loan portfolio was as follows ($ in thousands): Mortgage loan receivables held for investment, net, at amortized cost: Mortgage loans receivable Allowance for credit losses Mortgage loan Balance, December 31, 2021 $ 3,553,737 $ (31,752) $ — Origination of mortgage loan receivables 648,507 — 54,850 Repayment of mortgage loan receivables (349,935) — — Sale of loans, net (2) — — (949) Accretion/amortization of discount, premium and other fees 5,162 — — Release (addition) of provision for current expected credit loss, net — (580) — Balance, March 31, 2022 $ 3,857,471 $ (32,332) $ 53,901 (1) Refer to Note 5 Real Estate and Related Lease Intangibles, Net for further detail on foreclosure of real estate. (2) Represents unrealized lower of cost or market adjustment on loans held for sale. 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 116,555 — 41,000 Repayment of mortgage loan receivables (374,735) — (36) Proceeds from sales of mortgage loan receivables (46,557) — — Non-cash disposition of loan via foreclosure(1) (45,000) — — Accretion/amortization of discount, premium and other fees 3,408 — — Release of asset-specific loan loss provision via foreclosure(1) — 1,150 — Release (addition) of provision for current expected credit loss, net — 4,116 — Balance, March 31, 2021 $ 2,007,730 $ (36,241) $ 71,482 (1) Refer to Note 5, Real Estate and Related Lease Intangibles, Net for further detail on real estate acquired via foreclosure. |
Schedule of provision for loan losses | Allowance for Credit Losses and Non-Accrual Status ($ in thousands) Three Months Ended March 31, Allowance for Credit Losses 2022 2021 Allowance for credit losses at beginning of period $ 31,752 $ 41,507 Provision for (release of) current expected credit loss, net (1) 580 (4,116) Foreclosure of loans subject to asset-specific reserve — (1,150) Allowance for credit losses at end of period $ 32,332 $ 36,241 (1) There was no asset specific reserves recorded for the three months ended March 31, 2022 or 2021. Non-Accrual Status March 31, 2022(1) December 31, 2021(2) Carrying value of loans on non-accrual status, net of asset-specific reserve $ 79,877 $ 80,229 (1) Includes two of the Company’s loans, which were originated simultaneously as part of a single transaction and had a combined carrying value of $24.1 million as of March 31, 2022. Additionally, as of March 31, 2022 there were two loans with a combined carrying value of $25.2 million and one loan with a carrying value of $30.5 million. (2) Includes 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 $25.6 million and one loan with a carrying value of $30.5 million. |
Schedule of individually impaired loans | Loan Portfolio by Geographic Region, Property Type and Vintage (amortized cost $ in thousands) March 31, December 31, Geographic Region 2022 2021 South $ 1,067,323 $ 937,125 Northeast 1,186,408 1,080,652 Midwest 440,893 434,157 West 491,063 530,599 Southwest 602,204 501,272 Subtotal mortgage loans receivable 3,787,891 3,483,805 Individually impaired loans(1) 69,580 69,932 Total mortgage loans receivable $ 3,857,471 $ 3,553,737 (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 the Company’s mortgage loan portfolio by collateral type. The following tables summarize the amortized cost of the mortgage loan portfolio by property type as of March 31, 2022 and December 31, 2021, respectively ($ in thousands): Amortized Cost Basis by Origination Year as of March 31, 2022 Collateral Type 2022 2021 2020 2019 2018 and Earlier Total Office $ 76,325 $ 693,189 $ 29,650 $ 69,991 $ 155,582 $ 1,024,737 Multifamily 329,824 666,979 — 23,464 — 1,020,267 Mixed Use 179,135 459,776 88,280 140,948 — 868,139 Industrial 20,140 95,757 — 110,202 — 226,099 Hospitality — 43,344 — 21,579 147,420 212,343 Retail 11,250 105,649 — 66,269 10,472 193,640 Manufactured Housing — 97,873 — 26,437 3,934 128,244 Other 15,964 26,878 — 7,956 20,055 70,853 Self-Storage — 43,569 — — — 43,569 Subtotal mortgage loans receivable 632,638 2,233,014 117,930 466,846 337,463 3,787,891 Individually Impaired loans (1) — — — — 69,580 69,580 Total mortgage loans receivable (2) $ 632,638 $ 2,233,014 $ 117,930 $ 466,846 $ 407,043 $ 3,857,471 Amortized Cost Basis by Origination Year as of December 31, 2021 Collateral Type 2021 2020 2019 2018 2017 and Earlier Total Office $ 784,556 $ 29,636 $ 121,346 $ 59,073 $ 73,911 $ 1,068,522 Mixed Use 538,949 84,600 140,926 — — 764,475 Multifamily 697,089 3,131 47,322 — — 747,542 Hospitality 41,635 — 43,666 90,132 110,890 286,323 Retail 105,362 — 89,058 — 25,486 219,906 Industrial 41,203 — 108,469 — — 149,672 Manufactured Housing 117,265 — 26,404 — 3,941 147,610 Other 26,801 — 8,768 20,743 — 56,312 Self-Storage 43,443 — — — — 43,443 Subtotal mortgage loans receivable 2,396,303 117,367 585,959 169,948 214,228 3,483,805 Individually Impaired loans (1) — — — — 69,932 69,932 Total mortgage loans receivable (3) $ 2,396,303 $ 117,367 $ 585,959 $ 169,948 $ 284,160 $ 3,553,737 (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 March 31, 2022. (3) Not included above is $12.6 million of accrued interest receivable on all loans at December 31, 2021. |
REAL ESTATE SECURITIES (Tables)
REAL ESTATE SECURITIES (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of securities which are classified as available-for-sale | The following is a summary of the Company’s securities at March 31, 2022 and December 31, 2021 ($ in thousands): March 31, 2022 Gross Unrealized Weighted Average Asset Type Outstanding Amortized Cost Basis Gains Losses Carrying # of Rating (1) Coupon % Yield % Remaining CMBS $ 659,685 $ 659,099 $ 8 $ (11,063) $ 648,044 (2) 71 AAA 1.82 % 1.90 % 1.81 CMBS interest-only(3) 1,287,812 13,952 352 (52) 14,252 (4) 13 AAA 0.57 % 4.57 % 1.76 GNMA interest-only(3)(5) 54,895 407 75 (31) 451 14 AAA 0.36 % 5.29 % 3.55 Agency securities 52 53 — — 53 — AAA 4.00 % 2.78 % 1.92 Total debt securities $ 2,002,444 $ 673,511 $ 435 $ (11,146) $ 662,800 98 0.98 % 1.96 % 1.81 Equity securities(7) N/A 148 14 — 162 2 N/A N/A N/A N/A Allowance for current expected credit losses N/A — — (20) (20) Total real estate securities $ 2,002,444 $ 673,659 $ 449 $ (11,166) $ 662,942 100 December 31, 2021 Gross Unrealized Weighted Average Asset Type Outstanding Amortized Gains Losses Carrying # of Rating (1) Coupon % Yield % Remaining CMBS $ 691,402 $ 691,026 $ 775 $ (5,508) $ 686,293 (2) 73 AAA 1.57 % 1.57 % 2.06 CMBS interest-only(3) 1,302,551 15,268 617 — 15,885 (4) 13 AAA 0.45 % 5.67 % 1.88 GNMA interest-only(3)(5) 59,075 518 105 (64) 559 14 AA+ 0.38 % 4.97 % 3.64 Agency securities 557 560 3 — 563 2 AA+ 2.47 % 1.58 % 0.69 Total debt securities $ 2,053,585 $ 707,372 $ 1,500 $ (5,572) $ 703,300 102 0.83 % 1.67 % 2.06 Allowance for current expected credit losses N/A — — (20) (20) Total real estate securities $ 2,053,585 $ 707,372 $ 1,500 $ (5,592) $ 703,280 102 (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) As of March 31, 2022 and December 31, 2021, respectively, includes $9.6 million and $9.9 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. (3) The amounts presented represent the principal amount of the mortgage loans outstanding in the pool in which the interest-only securities participate. (4) As of March 31, 2022 and December 31, 2021, respectively, includes $0.5 million and $0.5 million of restricted securities which are designated as risk retention securities under the Dodd-Frank Act and are therefore subject to transfer restrictions over the term of the securitization trust and are classified as held-to-maturity and reported at amortized cost. (5) Agency interest-only securities are recorded at fair value with changes in fair value recorded in current period earnings. The Company’s Agency interest-only securities are considered to be hybrid financial instruments that contain embedded derivatives. As a result, the Company has elected to account for them as hybrid instruments in their entirety at fair value with changes in fair value recognized in unrealized gain (loss) on Agency interest-only securities in the consolidated statements of income. (6) The Company has elected to account for equity securities at fair value with changes in fair value recorded in current period earnings. |
Schedule of fair value of the Company's securities by remaining maturity based upon expected cash flows | The following summarizes the carrying value of the Company’s debt securities by remaining maturity based upon expected cash flows at March 31, 2022 and December 31, 2021 ($ in thousands): March 31, 2022 Asset Type Within 1 year 1-5 years 5-10 years After 10 years Total CMBS $ 275,365 $ 366,518 $ — $ 6,162 $ 648,045 CMBS interest-only 756 13,496 — — 14,252 GNMA interest-only 80 216 154 — 450 Agency securities — 53 — — 53 Allowance for current expected credit losses — — — — (20) Total real estate securities $ 276,201 $ 380,283 $ 154 $ 6,162 $ 662,780 December 31, 2021 Asset Type Within 1 year 1-5 years 5-10 years After 10 years Total CMBS $ 304,357 $ 354,670 $ 10,307 $ 16,958 $ 686,292 CMBS interest-only 1,018 14,868 — — 15,886 GNMA interest-only 102 278 179 — 559 Agency securities 503 60 — — 563 Allowance for current expected credit losses — — — — (20) Total real estate securities $ 305,980 $ 369,876 $ 10,486 $ 16,958 $ 703,280 |
REAL ESTATE AND RELATED LEASE_2
REAL ESTATE AND RELATED LEASE INTANGIBLES, NET (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Real Estate [Abstract] | |
Schedule of real estate properties by category | The following tables present additional detail related to our real estate portfolio, net ($ in thousands): March 31, 2022 December 31, 2021 Land $ 174,851 $ 186,940 Building 711,102 765,690 In-place leases and other intangibles 130,385 142,335 Undepreciated real estate and related lease intangibles 1,016,338 1,094,965 Less: Accumulated depreciation and amortization (223,481) (229,271) Real estate and related lease intangibles, net $ 792,857 $ 865,694 Below market lease intangibles, net (other liabilities)(1) $ (32,298) $ (33,203) (1) Below market lease intangibles, net is inclusive of $13.1 million and $12.8 million of accumulated amortization as of March 31, 2022 and December 31, 2021, respectively. |
Schedule of depreciation and amortization expense recorded | The following table presents depreciation and amortization expense on real estate recorded by the Company ($ in thousands): Three Months Ended March 31, 2022 2021 Depreciation expense(1) $ 7,088 $ 7,990 Amortization expense 2,254 1,546 Total real estate depreciation and amortization expense $ 9,342 $ 9,536 |
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): March 31, 2022 December 31, 2021 Gross intangible assets(1) $ 134,012 $ 146,593 Accumulated amortization 64,385 67,500 Net intangible assets $ 69,627 $ 79,093 (1) Includes $3.3 million and $3.8 million of unamortized above market lease intangibles which are included in real estate and related lease intangibles, net on the consolidated balance sheets as of March 31, 2022 and December 31, 2021, respectively. The following table presents increases/reductions in operating lease income related to the amortization of above or below market leases recorded by the Company ($ in thousands): Three Months Ended March 31, 2022 2021 Reduction in operating lease income for amortization of above market lease intangibles acquired $ (76) $ (92) Increase in operating lease income for amortization of below market lease intangibles acquired 520 570 Total $ 444 $ 478 |
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 March 31, 2022 ($ in thousands): Period Ending December 31, Adjustment to Operating Lease Income Amortization Expense 2022 $ 679 $ 3,771 2023 906 3,889 2024 906 3,889 2025 906 3,889 2026 906 3,888 Thereafter 24,715 47,021 Total $ 29,018 $ 66,347 |
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 March 31, 2022 ($ in thousands): Period Ending December 31, Amount 2022 $ 47,218 2023 57,334 2024 55,718 2025 53,712 2026 50,402 Thereafter 249,708 Total $ 514,092 |
Schedule of real estate properties acquired | During the three months ended March 31, 2021, the Company acquired the following properties ($ in thousands): Acquisition Date Type Primary Location(s) Purchase Price/Fair Value on the Date of Foreclosure Gain/(Loss) on Loan Foreclosure Ownership Interest (1) Real estate acquired via foreclosure February 2021 (2) Hotel Miami, FL 43,750 — (2) 100.0% Total real estate acquired via foreclosure 43,750 $ — Total real estate acquisitions $ 43,750 (1) Properties were consolidated as of acquisition date. (2) 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 $1.2 million recorded in the three months ended December 31, 2020. In February 2021, the foreclosed property was sold without any gain or loss. The Company recorded no revenues from its 2021 acquisitions for the three months ended March 31, 2021. |
Schedule of properties sold | The Company sold the following properties during the three months ended March 31, 2022 ($ in thousands): Sales Date Type Primary Location(s) Net Sales Proceeds Net Book Value Realized Gain/(Loss) Properties March 2022 Office Ewing, NJ $ 38,652 $ 24,134 $ 14,518 1 March 2022 Warehouse Conyers, GA 40,752 26,116 14,636 1 Totals (1) $ 79,404 $ 50,250 $ 29,154 (1) Includes $3.7 million of defeasance costs upon repayment of the mortgage financing in connection with the sales that is recorded within interest expense on the consolidated statement of income, such amount was correspondingly paid by the buyer and received by the Company as part of the sale and recorded in fee and other income on the consolidated statement of income. The Company sold the following properties during the three months ended March 31, 2021 ($ 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 — — Totals $ 43,750 $ 43,750 $ — |
INVESTMENT IN AND ADVANCES TO_2
INVESTMENT IN AND ADVANCES TO UNCONSOLIDATED JOINT VENTURES (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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 March 31, 2022 and December 31, 2021 ($ in thousands): Entity March 31, 2022 December 31, 2021 Grace Lake JV, LLC $ 5,243 $ 5,434 24 Second Avenue Holdings LLC — 17,720 Investment in unconsolidated joint ventures $ 5,243 $ 23,154 |
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 months ended March 31, 2022 and 2021 ($ in thousands): Three Months Ended March 31, Entity 2022 2021 Grace Lake JV, LLC $ 434 $ 297 24 Second Avenue Holdings LLC — 139 Earnings (loss) from investment in unconsolidated joint ventures $ 434 $ 436 |
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 March 31, 2022 and December 31, 2021 ($ in thousands): March 31, 2022(1) December 31, 2021 Total assets $ 68,368 $ 109,873 Total liabilities 58,109 66,387 Partners’/members’ capital $ 10,259 $ 43,486 (1) As of March 31, 2022, the balance represents only the Grace Lake JV, LLC interest. 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 months ended March 31, 2022 and 2021 ($ in thousands): Three Months Ended March 31, 2022 2021 Total revenues $ 5,073 $ 4,514 Total expenses 3,337 3,323 Net income (loss) $ 1,736 $ 1,191 |
DEBT OBLIGATIONS, NET (Tables)
DEBT OBLIGATIONS, NET (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of debt obligations | The details of the Company’s debt obligations at March 31, 2022 and December 31, 2021 are as follows ($ in thousands): March 31, 2022 Debt Obligations Committed / Carrying Value of Debt Obligations Committed but Unfunded Interest Rate at March 31, 2022(1) Current Term Maturity Remaining Extension Options Eligible Collateral Carrying Amount of Collateral Fair Value of Collateral Committed Loan Repurchase Facility(2) $ 500,000 $ 208,225 $ 291,775 1.9% — 2.1% 12/19/2022 (3) (4) $ 309,099 $ 309,099 Committed Loan Repurchase Facility 100,000 45,290 54,710 2.35% — 3.1% 2/26/2023 (5) (6) 63,519 63,519 Committed Loan Repurchase Facility 300,000 119,118 180,882 2.15% — 3.15% 12/19/2022 (7) (8) 184,616 184,616 Committed Loan Repurchase Facility 100,000 — 100,000 —% — —% 4/30/2024 (9) (4) — — Committed Loan Repurchase Facility 100,000 39,675 60,325 1.71% — 1.71% 1/3/2023 (3) (4) 52,766 52,766 Committed Loan Repurchase Facility 100,000 — 100,000 —% — —% 1/22/2024 (10) (8) — — Committed Loan Repurchase Facility 100,000 — 100,000 —% — —% 10/21/2022 (11) (12) — — Total Committed Loan Repurchase Facilities 1,300,000 412,308 887,692 610,000 610,000 Committed Securities Repurchase Facility(2) 635,114 28,839 606,275 1.09% — 1.42% 5/27/2023 N/A (13) 50,007 50,007 Uncommitted Securities Repurchase Facility N/A (14) 193,561 N/A (14) 0.66% — 2.06% 4/2022 - 6/2022 N/A (13) 206,501 206,501 (15) Total Repurchase Facilities 1,700,000 634,708 1,258,853 866,508 866,508 Revolving Credit Facility 266,430 — 266,430 —% — —% 2/11/2023 (16) N/A (17) N/A (17) N/A (17) Mortgage Loan Financing 646,126 648,666 — 3.75% — 6.16% 2022 - 2031(18) N/A (19) 748,995 970,126 (20) Secured Financing Facility 110,185 109,630 (21) — 10.75% — 10.75% 5/6/2023 N/A (22) 199,338 199,459 CLO Debt 1,064,365 1,055,402 (23) — 1.60% — 4.05% 2024 - 2026(24) N/A (4) 1,310,873 1,310,873 Borrowings from the FHLB 263,000 263,000 — 0.61% — 2.74% 2022 - 2024 N/A (25) 298,937 298,937 (26) Senior Unsecured Notes 1,649,794 1,631,905 (27) — 4.25% — 5.25% 2025 - 2029 N/A N/A (28) N/A (28) N/A (28) Total Debt Obligations, Net $ 5,699,900 $ 4,343,311 $ 1,525,283 $ 3,424,651 $ 3,645,903 (1) LIBOR and Term SOFR rates in effect as of March 31, 2022 are used to calculate interest rates for floating rate debt, as applicable. (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) One additional 12-month period at Company’s option. (6) First mortgage commercial real estate loans. It does not include the real estate collateralizing such loans. (7) Three 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 permitted during the final 12-month period. (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 $2.0 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 $0.3 million and an unamortized discount of $0.3 million related to the Purchase Right (described in detail under Secured Financing Facility below) at March 31, 2022. (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 $9.0 million at March 31, 2022. (24) Represents the estimated maturity date based on the remaining reinvestment period and underlying loan maturities. (25) Investment grade commercial real estate securities and cash. It does not include the first mortgage commercial real estate loans collateralizing such securities. (26) Includes $7.3 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. (27) Presented net of unamortized debt issuance costs of $17.9 million at March 31, 2022. (28) The obligations under the senior unsecured notes are guaranteed by the Company and certain of its subsidiaries. December 31, 2021 Debt Obligations Committed / Carrying Value of Debt Obligations Committed but Unfunded Interest Rate at December 31, 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 $ 37,207 $ 462,793 1.61% — 1.61% 12/19/2022 (3) (4) $ 82,966 $ 82,966 Committed Loan Repurchase Facility 100,000 45,290 54,710 2.06% — 2.81% 2/26/2022 (5) (6) 62,972 62,972 Committed Loan Repurchase Facility 300,000 75,837 224,163 1.86% — 2.86% 12/19/2022 (7) (8) 127,926 127,926 Committed Loan Repurchase Facility 100,000 — 100,000 —% — —% 4/30/2024 (9) (4) — — Committed Loan Repurchase Facility 100,000 26,183 73,817 2.23% — 2.23% 1/3/2023 (3) (4) 48,720 48,720 Committed Loan Repurchase Facility 100,000 — 100,000 —% — —% 10/21/2022 (10) (11) — — Total Committed Loan Repurchase Facilities 1,200,000 184,517 1,015,483 322,584 322,584 Committed Securities Repurchase Facility(2) 862,794 44,139 818,655 0.65% — 1.05% 5/27/2023 N/A (12) 50,522 50,522 Uncommitted Securities Repurchase Facility N/A (13) 215,921 N/A (13) 0.54% — 2.06% 1/2022 - 6/2022 N/A (12) 242,629 242,629 (14) Total Repurchase Facilities 1,600,000 444,577 1,371,344 615,735 615,735 Revolving Credit Facility 266,430 — 266,430 —% — —% 2/11/2022 (15) N/A (16) N/A (16) N/A (16) Mortgage Loan Financing 690,927 693,797 — 3.75% — 6.16% 2022 - 2031(17) N/A (18) 805,007 1,033,372 (19) Secured Financing Facility 136,444 132,447 (20) — 10.75% — 10.75% 5/6/2023 N/A (21) 244,399 244,553 CLO Debt 1,064,365 1,054,774 (22) — 1.66% — 1.75% 2024 - 2026(23) N/A (4) 1,299,116 1,299,116 Borrowings from the FHLB 263,000 263,000 — 0.36% — 2.74% 2022 - 2024 N/A (24) 301,792 301,792 (25) Senior Unsecured Notes 1,649,794 1,631,108 (26) — 4.25% — 5.25% 2025 - 2029 N/A N/A (27) N/A (27) N/A (27) Total Debt Obligations, Net $ 5,670,960 $ 4,219,703 $ 1,637,774 $ 3,266,049 $ 3,494,568 (1) LIBOR rates in effect as of December 31, 2021 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) Three 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 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 $1.9 million and an unamortized discount of $2.1 million related to the Purchase Right (described in detail under Secured Financing Facility below) at December 31, 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. (22) Presented net of unamortized debt issuance costs of $9.6 million at December 31, 2021. (23) Represents the estimated maturity date based on the remaining reinvestment period and underlying loan maturities. (24) Investment grade commercial real estate securities and cash. It does not include the first mortgage commercial real estate loans collateralizing such securities. (25) Includes $7.5 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 $18.7 million at December 31, 2021. (27) The obligations under the senior unsecured notes are guaranteed by the Company and certain of its subsidiaries. |
Schedule of contractual payments under all borrowings by maturity | The following schedule reflects the Company’s contractual payments under all borrowings by maturity ($ in thousands): Period ending December 31, Borrowings by 2022 $ 419,166 2023 250,586 2024 594,019 2025 526,006 2026 26,424 Thereafter 1,487,611 Subtotal 3,303,812 Debt issuance costs included in senior unsecured notes (17,889) Debt issuance costs included in secured financing facility (257) Discount on secured financing facility related to Purchase Right (298) Debt issuance costs included in mortgage loan financing (255) Premiums included in mortgage loan financing(3) 2,796 Total (2) $ 3,287,909 (1) The allocation of repayments under our committed loan repurchase facilities and Secured Financing Facility is based on the earlier of (i) the maturity date of each agreement, or (ii) the maximum maturity date of the collateral loans, assuming all extension options are exercised by the borrower. (2) Total does not include $1.1 billion of consolidated CLO debt obligations and the related debt issuance costs of $9.0 million, as the satisfaction of these liabilities will be paid through cash flow from loan collateral including amortization and will not require cash outlays from us. |
DERIVATIVE INSTRUMENTS (Tables)
DERIVATIVE INSTRUMENTS (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of breakdown of the derivatives outstanding | The following is a breakdown of the derivatives outstanding as of March 31, 2022 and December 31, 2021 ($ in thousands): March 31, 2022 Fair Value Remaining Contract Type Notional Asset(1) Liability(1) Caps 1 Month LIBOR $ 15,050 $ 55 $ — 2.44 Futures 5-year Swap 25,400 42 — 0.25 10-year Swap 83,800 137 — 0.25 Total futures 109,200 179 — Total derivatives $ 124,250 $ 234 $ — (1) Shown as derivative instruments, at fair value, in the accompanying consolidated balance sheets. December 31, 2021 Fair Value Remaining Contract Type Notional Asset(1) Liability(1) Caps 1 Month LIBOR $ 84,621 $ 60 $ — 0.57 Futures 5-year Swap 6,500 76 — 0.25 10-year Swap 23,000 266 — 0.25 Total futures 29,500 342 — Total derivatives $ 114,121 $ 402 $ — (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 income for the three months ended March 31, 2022 and 2021($ in thousands): Three Months Ended March 31, 2022 Contract Type Unrealized Realized Net Result Caps $ (6) $ — $ (6) Futures (162) 3,303 3,141 Total $ (168) $ 3,303 $ 3,135 Three Months Ended March 31, 2021 Contract Type Unrealized Realized Net Result Futures $ 2 $ 4,769 $ 4,771 Total $ 2 $ 4,769 $ 4,771 |
OFFSETTING ASSETS AND LIABILI_2
OFFSETTING ASSETS AND LIABILITIES (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Offsetting [Abstract] | |
Schedule of offsetting of financial assets | The following table represents offsetting financial assets and derivative assets as of March 31, 2022 ($ in thousands): Description Gross amounts of Gross amounts Net amounts of Gross amounts not offset in the Net amount Financial Cash collateral Derivatives $ 234 $ — $ 234 $ — $ (805) $ 234 Total $ 234 $ — $ 234 $ — $ (805) $ 234 The following table represents offsetting of financial assets and derivative assets as of December 31, 2021 ($ in thousands): Description Gross amounts of Gross amounts Net amounts of Gross amounts not offset in the Net amount Financial Cash collateral Derivatives $ 402 $ — $ 402 $ — $ (526) $ 402 Total $ 402 $ — $ 402 $ — $ (526) $ 402 (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 March 31, 2022 ($ in thousands): Description Gross amounts of Gross amounts Net amounts of Gross amounts not offset in the Net amount Financial Cash collateral Repurchase agreements $ 634,708 $ — $ 634,708 $ 634,708 $ 3,178 $ 631,531 Total $ 634,708 $ — $ 634,708 $ 634,708 $ 3,983 $ 630,726 (1) Included in restricted cash on consolidated balance sheets. The following table represents offsetting of financial liabilities and derivative liabilities as of December 31, 2021 ($ in thousands): Description Gross amounts of Gross amounts Net amounts of Gross amounts not offset in the Net amount Financial Cash collateral Repurchase agreements $ 444,577 $ — $ 444,577 $ 444,577 $ 1,975 $ 442,603 Total $ 444,577 $ — $ 444,577 $ 444,577 $ 1,975 $ 442,603 (1) Included in restricted cash on consolidated balance sheets. |
CONSOLIDATED VARIABLE INTERES_2
CONSOLIDATED VARIABLE INTEREST ENTITIES (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Variable Interest Entities | The Company consolidates on its balance sheet two CLOs that are considered VIEs as of March 31, 2022 and December 31, 2021 ($ in thousands): March 31, 2022 December 31, 2021 Notes 3 & 7 Restricted cash $ — $ 369 Mortgage loan receivables held for investment, net, at amortized cost 1,310,873 1,299,116 Accrued interest receivable 4,699 4,587 Other assets 16,264 26,636 Total assets $ 1,331,836 $ 1,330,708 Debt obligations, net $ 1,055,402 $ 1,054,774 Accrued expenses 1,007 1,218 Other liabilities 64 65 Total liabilities 1,056,473 1,056,057 Net equity in VIEs (eliminated in consolidation) 275,363 274,651 Total equity 275,363 274,651 Total liabilities and equity $ 1,331,836 $ 1,330,708 |
EQUITY STRUCTURE AND ACCOUNTS (
EQUITY STRUCTURE AND ACCOUNTS (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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 three months ended March 31, 2022 and 2021 ($ in thousands): Shares Amount(1) Authorizations remaining as of December 31, 2021 $ 44,122 Repurchases paid 55,000 (611) Repurchases unsettled — Authorizations remaining as of March 31, 2022 $ 43,511 (1) Amount excludes commissions paid associated with share repurchases. Shares Amount(1) Authorizations remaining as of December 31, 2020 $ 38,102 Additional authorizations — Repurchases paid 20,000 (214) Repurchases unsettled — Authorizations remaining as of March 31, 2021 $ 37,888 (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 three months ended March 31, 2022 and 2021: Declaration Date Dividend per Share March 15, 2022 $ 0.20 Total $ 0.20 March 15, 2021 $ 0.20 Total $ 0.20 |
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 three months ended March 31, 2022 and 2021 ($ in thousands): Accumulated Other Comprehensive Income (Loss) Accumulated Other Comprehensive Income (Loss) of Noncontrolling Interests Total Accumulated Other Comprehensive Income (Loss) December 31, 2021 $ (4,112) $ (2) $ (4,114) Other comprehensive income (loss) (6,641) — (6,641) March 31, 2022 $ (10,753) $ (2) $ (10,755) 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) 6,849 — 6,849 March 31, 2021 $ (3,614) $ (2) $ (3,616) |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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 months ended March 31, 2022 and 2021 consist of the following: Three Months Ended March 31, ($ in thousands except share amounts) 2022 2021 Basic and Diluted Net income (loss) available for Class A common shareholders $ 19,032 $ 192 Weighted average shares outstanding Basic 124,305,943 123,974,970 Diluted 125,478,001 124,324,683 |
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 months ended March 31, 2022 and 2021 consist of the following: Three Months Ended March 31, (In thousands except share and per share amounts) 2022 2021 Basic Net Income (Loss) Per Share of Class A Common Stock Numerator : Net income (loss) attributable to Class A common shareholders $ 19,032 $ 192 Denominator : Weighted average number of shares of Class A common stock outstanding 124,305,943 123,974,970 Basic net income (loss) per share of Class A common stock $ 0.15 $ — Diluted Net Income (Loss) Per Share of Class A Common Stock Numerator: Net income (loss) attributable to Class A common shareholders $ 19,032 $ 192 Diluted net income (loss) attributable to Class A common shareholders 19,032 192 Denominator: Basic weighted average number of shares of Class A common stock outstanding 124,305,943 123,974,970 Add - dilutive effect of: Incremental shares of unvested Class A restricted stock(1) 1,172,058 349,713 Diluted weighted average number of shares of Class A common stock outstanding 125,478,001 124,324,683 Diluted net income (loss) per share of Class A common stock $ 0.15 $ — (1) The Company is using the treasury stock method. |
STOCK BASED AND OTHER COMPENS_2
STOCK BASED AND OTHER COMPENSATION PLANS (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Stock based compensation plans summary | The following table summarizes the impact on the consolidated statements of income of the various stock based compensation plans and other compensation plans ($ in thousands): Three Months Ended March 31, 2022 2021 Stock Based Compensation Expense $ 20,412 $ 5,276 Phantom Equity Investment Plan — 22 Total Stock Based Compensation Expense(1) $ 20,412 $ 5,298 |
Summary of the grants | A summary of the grants is presented below: Three Months Ended March 31, 2022 2021 Number Weighted Number Weighted Grants - Class A Common Stock 2,843,340 $ 11.89 747,713 $ 9.81 |
Schedule of nonvested shares activity | The table below presents the number of unvested shares of Class A common stock and outstanding stock options at March 31, 2022 and changes during 2022 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, 2021 2,145,380 623,788 Granted 2,843,340 — Vested (2,394,618) — Forfeited (66,026) — Expired — — Nonvested/Outstanding at March 31, 2022 2,528,076 623,788 Exercisable at March 31, 2022 (1) 623,788 (1) The weighted-average exercise price of outstanding options, warrants and rights is $14.84 at March 31, 2022. |
FAIR VALUE OF FINANCIAL INSTR_2
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Summary of fair value | The carrying values and estimated fair values of the Company’s financial instruments, which are both reported at fair value on a recurring basis (as indicated) or amortized cost/par, at March 31, 2022 and December 31, 2021 are as follows ($ in thousands): March 31, 2022 Weighted Average Principal Amount Amortized Cost Basis/Purchase Price Fair Value Fair Value Method Yield Remaining Assets: CMBS(1) $ 659,685 $ 659,097 $ 648,042 Internal model, third-party inputs 1.90 % 1.81 CMBS interest-only(1) 1,287,812 (2) 13,952 14,253 Internal model, third-party inputs 4.57 % 1.76 GNMA interest-only(3) 54,895 (2) 407 451 Internal model, third-party inputs 5.29 % 3.55 Agency securities(1) 52 53 53 Internal model, third-party inputs 2.78 % 1.92 Equity securities(3) N/A 148 162 Observable market prices N/A N/A 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(4) 3,887,434 3,857,464 3,797,372 Discounted Cash Flow(5) 5.45 % 1.68 Mortgage loan receivables held for sale 54,850 53,901 53,901 Internal model, third-party inputs(6) 4.44 % 9.91 FHLB stock(6) 11,835 11,835 11,835 (6) 3.00 % N/A Nonhedge derivatives(1)(7) 124,250 234 234 Counterparty quotations N/A 0.76 Liabilities: Repurchase agreements - short-term 621,745 621,745 621,745 Discounted Cash Flow(8) 1.34 % 0.54 Repurchase agreements - long-term 12,962 12,962 12,962 Discounted Cash Flow(9) 0.93 % 1.15 Mortgage loan financing 646,126 648,666 662,672 Discounted Cash Flow 4.85 % 3.0 Secured financing facility 110,185 109,630 107,883 Discounted Cash Flow(8) 9.91 % 1.10 CLO debt 1,064,365 1,055,402 1,055,402 Discounted Cash Flow(9) 2.14 % 16.68 Borrowings from the FHLB 263,000 263,000 263,303 Discounted Cash Flow 0.96 % 1.71 Senior unsecured notes 1,649,794 1,631,905 1,589,787 Internal model, third-party inputs 4.66 % 5.50 (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) Balance does not include impact of allowance for current expected credit losses of $32.3 million at March 31, 2022. (5) 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. (6) 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. (7) The outstanding face amount of the nonhedge derivatives represents the notional amount of the underlying contracts. (8) 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. (9) For repurchase agreements - long term 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, 2021 Weighted Average Principal Amount Amortized Cost Basis/Purchase Price Fair Value Fair Value Method Yield Remaining Assets: CMBS(1) $ 691,402 $ 691,026 $ 686,293 Internal model, third-party inputs 1.57 % 2.06 CMBS interest-only(1) 1,302,551 (2) 15,268 15,885 Internal model, third-party inputs 5.67 % 1.88 GNMA interest-only(3) 59,075 (2) 518 559 Internal model, third-party inputs 4.97 % 3.64 Agency securities(1) 557 560 563 Internal model, third-party inputs 1.58 % 0.69 Mortgage loan receivables held for investment, net, at amortized cost(4) 3,581,919 3,553,737 3,494,254 Discounted Cash Flow(5) 5.65 % 1.76 FHLB stock(6) 11,835 11,835 11,835 (6) 3.25 % N/A Nonhedge derivatives(1)(7) 114,121 402 402 Counterparty quotations N/A 0.30 Liabilities: Repurchase agreements - short-term 418,394 418,394 418,394 Discounted Cash Flow(8) 0.89 % 0.46 Repurchase agreements - long-term 26,183 26,183 26,183 Discounted Cash Flow(9) 2.21 % 1.01 Mortgage loan financing 690,927 693,797 709,695 Discounted Cash Flow 4.83 % 3.3 Secured financing facility 136,444 132,447 133,389 Discounted Cash Flow(8) 10.75 % 1.35 CLO debt 1,064,365 1,054,774 1,054,774 Discounted Cash Flow(9) 2.04 % 16.92 Borrowings from the FHLB 263,000 263,000 263,414 Discounted Cash Flow 0.91 % 1.95 Senior unsecured notes 1,649,794 1,631,108 1,677,039 Internal model, third-party inputs 4.66 % 5.74 (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) Balance does not include impact of allowance for current expected credit losses of $31.8 million at December 31, 2021. (5) Fair value for floating rate mortgage loan receivables, held for investment is estimated to approximate the outstanding face amount given the short interest rate reset risk (30 days) and no significant change in credit risk. Fair value for fixed rate mortgage loan receivables, held for investment is measured using a discounted cash flow model. (6) Fair value of the FHLB stock approximates outstanding face amount as the Company’s captive insurance subsidiary is restricted from trading the stock and can only put the stock back to the FHLB, at the FHLB’s discretion, at par. (7) The outstanding face amount of the nonhedge derivatives represents the notional amount of the underlying contracts. (8) Fair value for repurchase agreement liabilities - short term borrowings under the Secured Financing Facility and borrowings under the Revolving Credit Facility is estimated to approximate carrying amount primarily due to the short interest rate reset risk (30 days) of the financings and the high credit quality of the assets collateralizing these positions. If the collateral is determined to be impaired, the related financing would be revalued accordingly. There are no impairments on any positions. (9) For repurchase agreements - long term and CLO debt, the carrying value approximates the fair value discounting the expected cash flows at current market rates. If the collateral is determined to be impaired, the related financing would be revalued accordingly. There are no impairments on any positions. |
Summary of financial assets and liabilities, both reported at fair value on a recurring basis or amortized cost/par | The following table summarizes the Company’s financial assets and liabilities, which are both reported at fair value on a recurring basis (as indicated) or amortized cost/par, at March 31, 2022 and December 31, 2021 ($ in thousands): March 31, 2022 Financial Instruments Reported at Fair Value on Consolidated Statements of Financial Condition Principal Fair Value Level 1 Level 2 Level 3 Total Assets: CMBS(1) $ 649,626 $ — $ — $ 638,403 $ 638,403 CMBS interest-only(1) 1,278,708 (2) — — 13,743 13,743 GNMA interest-only(3) 54,895 (2) — — 451 451 Agency securities(1) 52 — — 53 53 Equity securities N/A 162 — — 162 Nonhedge derivatives(4) 124,250 — 234 — 234 $ 162 $ 234 $ 652,650 $ 653,046 Financial Instruments Not Reported at Fair Value on Consolidated Statements of Financial Condition Principal 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(5) $ 3,887,434 $ — $ — $ 3,797,372 $ 3,797,372 Mortgage loan receivable held for sale(7) 54,850 — — 53,901 53,901 CMBS(6) 10,059 — — 9,639 9,639 CMBS interest-only(6) 9,104 — — 509 509 FHLB stock 11,835 — — 11,835 11,835 $ — $ — $ 3,873,256 $ 3,873,256 Liabilities: Repurchase agreements - short-term 621,745 $ — $ — $ 621,745 $ 621,745 Repurchase agreements - long-term 12,962 — — 12,962 12,962 Mortgage loan financing 646,126 — — 662,672 662,672 Secured financing facility 110,185 — — 107,883 107,883 CLO debt 1,064,365 — — 1,055,402 1,055,402 Borrowings from the FHLB 263,000 — — 263,303 263,303 Senior unsecured notes 1,649,794 — — 1,589,787 1,589,787 $ — $ — $ 4,313,754 $ 4,313,754 (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) Balance does not include impact of allowance for current expected credit losses of $32.3 million at March 31, 2022. (6) 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. (7) A lower of cost or market adjustment was recorded as of March 31, 2022. December 31, 2021 Financial Instruments Reported at Fair Value on Consolidated Statements of Financial Condition Principal Fair Value Level 1 Level 2 Level 3 Total Assets: CMBS(1) $ 681,076 $ — $ — $ 676,398 $ 676,398 CMBS interest-only(1) 1,293,181 (2) — — 15,344 15,344 GNMA interest-only(3) 59,075 (2) — — 559 559 Agency securities(1) 557 — — 563 563 Nonhedge derivatives(4) 114,121 — 402 — 402 $ — $ 402 $ 692,864 $ 693,266 Financial Instruments Not Reported at Fair Value on Consolidated Statements of Financial Condition Principal 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(5) $ 3,581,920 $ — $ — $ 3,494,254 $ 3,494,254 CMBS(6) 10,326 — — 9,894 9,894 CMBS interest-only(6) 9,370 — — 541 541 FHLB stock 11,835 — — 11,835 11,835 $ — $ — $ 3,516,524 $ 3,516,524 Liabilities: Repurchase agreements - short-term 418,394 $ — $ — $ 418,394 $ 418,394 Repurchase agreements - long-term 26,183 — — 26,183 26,183 Mortgage loan financing 690,927 — — 709,695 709,695 Secured financing facility 136,444 — — 133,389 133,389 CLO debt 1,064,365 — — 1,054,774 1,054,774 Borrowings from the FHLB 263,000 — — 263,414 263,414 Senior unsecured notes 1,649,794 — — 1,677,039 1,677,039 $ — $ — $ 4,282,888 $ 4,282,888 (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) Balance does not include impact of allowance for current expected credit losses of $31.8 million at December 31, 2021. |
Schedule of changes in Level 3 of financial instruments | The following table summarizes changes in Level 3 financial instruments reported at fair value on the consolidated statements of financial condition for the three months ended March 31, 2022 and 2021 ($ in thousands): Three Months Ended March 31, Level 3 2022 2021 Balance at January 1, $ 692,864 $ 1,046,569 Transfer from level 2 — — Purchases 29,603 40,016 Sales (4,261) (329,062) Paydowns/maturities (57,489) (10,512) Amortization of premium/discount (1,326) (2,013) Unrealized gain/(loss) (6,638) 6,829 Realized gain/(loss) on sale (103) 579 Balance at March 31, $ 652,650 $ 752,406 |
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): March 31, 2022 Financial Instrument Carrying Value Valuation Technique Unobservable Input Minimum Weighted Average Maximum CMBS(1) $ 638,403 Discounted cash flow Yield (4) — % 1.83 % 17.93 % Duration (years)(5) 0 1.80 4.78 CMBS interest-only(1) 13,743 (2) Discounted cash flow Yield (4) (16.65) % 4.49 % 11.17 % Duration (years)(5) 0 1.67 2.41 Prepayment speed (CPY)(5) 100.00 100.00 100.00 GNMA interest-only(3) 451 (2) Discounted cash flow Yield (4) — % 5.29 % 10.00 % Duration (years)(5) 0 2.68 5.22 Prepayment speed (CPJ)(5) 5 17.42 35 Agency securities(1) 53 Discounted cash flow Yield (4) 2.78 % 2.78 % 2.78 % Duration (years)(5) 0 0 0 Total $ 652,650 December 31, 2021 Financial Instrument Carrying Value Valuation Technique Unobservable Input Minimum Weighted Average Maximum CMBS(1) $ 676,398 Discounted cash flow Yield (4) 0.77 % 1.51 % 5.28 % Duration (years)(5) 0 1.93 8.39 CMBS interest-only(1) 15,344 (2) Discounted cash flow Yield (4) — % 5.7 % 9.34 % Duration (years)(5) 0.03 1.81 2.58 Prepayment speed (CPY)(5) 100.00 100.00 100.00 GNMA interest-only(3) 559 (2) Discounted cash flow Yield (4) — % 4.97 % 10.00 % Duration (years)(5) 0 2.72 5.56 Prepayment speed (CPJ)(5) 5 17.41 35.00 Agency securities(1) 563 Discounted cash flow Yield (4) 1.44 % 1.58 % 2.78 % Duration (years)(5) 0 0.42 0.47 Total $ 692,864 (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) | 3 Months Ended |
Mar. 31, 2022 | |
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 March 31, 2022 Loans Securities Real Estate (1) Corporate/Other(2) Company Interest income $ 53,120 $ 3,065 $ — $ 20 $ 56,205 Interest expense (14,283) (452) (11,479) (20,821) (47,035) Net interest income (expense) 38,837 2,613 (11,479) (20,801) 9,170 (Provision for) release of loan loss reserves (874) — — (874) Net interest income (expense) after provision for (release of) loan reserves 37,963 2,613 (11,479) (20,801) 8,296 Real estate operating income — — 26,354 — 26,354 Sale of loans, net (949) — — — (949) Realized gain (loss) on securities — (96) — — (96) Unrealized gain (loss) on equity securities — 14 — — 14 Unrealized gain (loss) on Agency interest-only securities — 3 — — 3 Realized gain on sale of real estate, net — — 29,154 — 29,154 Fee and other income 3,377 15 3,707 95 7,194 Net result from derivative transactions 2,337 804 (6) — 3,135 Earnings (loss) from investment in unconsolidated joint ventures — — 434 — 434 Total other income (loss) 4,765 740 59,643 95 65,243 Compensation and employee benefits — — — (29,864) (29,864) Operating expenses(3) 17 — — (5,525) (5,508) Real estate operating expenses — — (8,992) — (8,992) Fee expense (799) (48) (166) (975) (1,988) Depreciation and amortization — — (9,334) (8) (9,342) Total costs and expenses (782) (48) (18,492) (36,372) (55,694) Income tax (expense) benefit — — — 1,309 1,309 Segment profit (loss) $ 41,946 $ 3,305 $ 29,672 $ (55,769) $ 19,154 Total assets as of March 31, 2022 $ 3,879,040 $ 662,942 $ 853,511 $ 578,704 $ 5,974,197 Three months ended March 31, 2021 Loans Securities Real Estate (1) Corporate/Other(2) Company Interest income $ 35,892 $ 3,234 $ — $ 161 39,287 Interest expense (14,075) (832) (8,785) (22,281) (45,973) Net interest income (expense) 21,817 2,402 (8,785) (22,120) (6,686) Provision for (release of) loan loss reserves 4,251 — — — 4,251 Net interest income (expense) after provision for (release of) loan reserves 26,068 2,402 (8,785) (22,120) (2,435) Operating lease income — — 24,159 — 24,159 Realized gain (loss) on securities — 579 — — 579 Unrealized gain (loss) on Agency interest-only securities — (20) — — (20) Fee and other income 2,969 — 32 283 3,284 Net result from derivative transactions 3,043 1,728 — — 4,771 Earnings (loss) from investment in unconsolidated joint ventures — — 436 — 436 Gain (loss) on extinguishment of debt — — — — — Total other income (loss) 6,012 2,287 24,627 283 33,209 Salaries and employee benefits — — — (9,533) (9,533) Operating expenses(3) 9 — — (4,250) (4,241) Real estate operating expenses — — (6,211) — (6,211) Fee expense (1,426) (50) (123) — (1,599) Depreciation and amortization — — (9,511) (25) (9,536) Total costs and expenses (1,417) (50) (15,845) (13,808) (31,120) Income tax (expense) benefit — — — 778 778 Segment profit (loss) $ 30,663 $ 4,639 $ (3) $ (34,867) $ 432 Total assets as of December 31, 2021 $ 3,521,986 $ 703,280 $ 914,027 $ 711,959 $ 5,851,252 (1) Includes the Company’s investment in unconsolidated joint ventures that held real estate of $5.2 million and $23.2 million as of March 31, 2022 and December 2021, 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 $11.8 million as of March 31, 2022 and December 31, 2021, and the Company’s senior unsecured notes of $1.6 billion and $1.6 billion at March 31, 2022 and December 31, 2021, respectively. (3) Includes $3.0 million and $2.0 million of professional fees and $0.9 million and $0.9 million of information technology expenses for the three months ended March 31, 2022 and 2021, respectively. |
ORGANIZATION AND OPERATIONS (De
ORGANIZATION AND OPERATIONS (Details) | Mar. 31, 2022 |
LCFH | |
ORGANIZATION AND OPERATIONS | |
Ownership interest in LCFH | 100.00% |
MORTGAGE LOAN RECEIVABLES - Sch
MORTGAGE LOAN RECEIVABLES - Schedule of Mortgage Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Outstanding Face Amount | $ 3,942,284 | $ 3,581,919 | ||
Allowance for credit losses | (32,332) | (31,752) | $ (36,241) | $ (41,507) |
Carrying Value | $ 3,879,040 | $ 3,521,985 | ||
Weighted average yield | 5.44% | 5.65% | ||
Remaining Maturity | 1 year 9 months 18 days | 1 year 9 months 18 days | ||
Principal balance of loans on non-accrual status | $ 79,877 | $ 80,229 | ||
Deferred origination fees and other items | 27,400 | 26,000 | ||
First mortgage loans | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Outstanding Face Amount | 3,803,480 | 3,482,715 | ||
Carrying Value gross, consumer and commercial real estate | $ 3,773,593 | $ 3,454,654 | ||
Weighted average yield | 5.34% | 5.50% | ||
Remaining Maturity | 1 year 8 months 12 days | 1 year 9 months 18 days | ||
Mezzanine loans | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Outstanding Face Amount | $ 83,954 | $ 99,204 | ||
Carrying Value gross, consumer and commercial real estate | $ 83,878 | $ 99,083 | ||
Weighted average yield | 10.70% | 10.92% | ||
Remaining Maturity | 2 years | 1 year 10 months 24 days | ||
Total mortgage loans receivable | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Outstanding Face Amount | $ 3,887,434 | $ 3,581,919 | ||
Carrying Value gross, consumer and commercial real estate | $ 3,857,471 | $ 3,553,737 | ||
Weighted average yield | 5.45% | 5.65% | ||
Remaining Maturity | 1 year 8 months 12 days | 1 year 9 months 18 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 | $ 3,887,434 | $ 3,581,919 | ||
Allowance for credit losses | (32,332) | (31,752) | $ (36,241) | $ (41,507) |
Carrying Value | 3,825,139 | $ 3,521,985 | ||
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 | 54,850 | |||
Carrying Value | $ 53,901 | |||
Weighted average yield | 4.44% | |||
Remaining Maturity | 9 years 10 months 24 days |
MORTGAGE LOAN RECEIVABLES - Add
MORTGAGE LOAN RECEIVABLES - Additional Information (Details) | 3 Months Ended | 12 Months Ended | |||||
Mar. 31, 2022USD ($)loan | Mar. 31, 2021USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2021USD ($)loan | Dec. 31, 2018USD ($)loan | Dec. 31, 2020USD ($) | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||||
Allowance for current expected credit losses | $ 33,100,000 | $ 32,200,000 | |||||
General CECL Reserve | 32,332,000 | $ 36,241,000 | 31,752,000 | $ 41,507,000 | |||
Individually impaired loans | 69,580,000 | 69,932,000 | |||||
Provision for (release of) loan loss reserves | (874,000) | 4,251,000 | |||||
Decrease of reserve on unfunded commitments | 300,000 | (100,000) | |||||
Provision for current expected credit loss (implementation impact)(1) | 580,000 | (4,116,000) | |||||
Mortgage loans receivable | [1] | 3,857,471,000 | 3,553,737,000 | ||||
Loans nonaccrual status, amount | $ 79,877,000 | $ 80,229,000 | |||||
Minimum | |||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||||
Direct capitalization rate | 4.88% | 4.70% | |||||
Maximum | |||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||||
Direct capitalization rate | 5.23% | 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 | $ 20,200,000 | ||||||
Number or loans in default | 3 | ||||||
Provision for (release of) loan loss reserves | $ (600,000) | 4,200,000 | |||||
Accounting Standards Update 2016-13 | |||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||||
Loans that previously had asset-specific reserves | loan | 3 | 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 | ||||||
Number or loans in default | 3 | ||||||
Accounting Standards Update 2016-13 | Two Of Company Loans 1 | |||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||||
General CECL Reserve | $ 7,500,000 | ||||||
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 | $ 3,600,000,000 | $ 3,300,000,000 | |||||
Loans receivable with variable rates of interest | 92.60% | 91.50% | |||||
Loans receivable with variable rates of interest, subject to interest rate floors | 98.00% | 100.00% | |||||
General CECL Reserve | $ 32,332,000 | $ 36,241,000 | $ 31,752,000 | $ 41,507,000 | |||
Number or loans in default | loan | 1 | ||||||
Total mortgage loan receivables held for investment, net, at amortized cost | London Interbank Offered Rate (LIBOR) | |||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||||
Loans receivable with variable rates of interest | $ 2,900,000,000 | ||||||
Total mortgage loan receivables held for investment, net, at amortized cost | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | |||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||||
Loans receivable with variable rates of interest | $ 700,000,000 | ||||||
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 | loan | 2 | 2 | |||||
Mortgage loans receivable | $ 26,800,000 | ||||||
Loans nonaccrual status, amount | 24,100,000 | $ 24,200,000 | |||||
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 | loan | 1 | ||||||
Loans nonaccrual status, amount | $ 5,900,000 | ||||||
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] | |||||||
Loan reserve amount | $ 2,700,000 | ||||||
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 | ||||||
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 | 30,500,000 | ||||||
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] | |||||||
General CECL Reserve | $ 17,500,000 | $ 10,000,000 | |||||
Number or loans in default | loan | 2 | 2 | |||||
Mortgage loans receivable | $ 42,700,000 | ||||||
Loans nonaccrual status, amount | $ 25,200,000 | $ 25,600,000 | 45,000,000 | ||||
Total mortgage loan receivables held for investment, net, at amortized cost | Two Of Company Loans 1 | Minimum | |||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||||
Direct capitalization rate | 8.50% | 7.50% | |||||
Total mortgage loan receivables held for investment, net, at amortized cost | Two Of Company Loans 1 | Maximum | |||||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||||
Direct capitalization rate | 9.25% | 8.60% | |||||
Total mortgage loan receivables held for investment, net, at amortized cost | Two Of Company Loans 1 | 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 | Two Of Company Loans 1 | 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 | ||||||
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 | $ 54,900,000 | ||||||
Percentage of loans receivable with fixed rates of interest | 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 | ||||||
[1] | Includes amounts relating to consolidated variable interest entities. Refer to Note 2 and Note 10. |
MORTGAGE LOAN RECEIVABLES - Act
MORTGAGE LOAN RECEIVABLES - Activity in Loan Portfolio (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Movement in Mortgage Loans on Real Estate [Roll Forward] | ||||
Sale of loans, net | $ (949) | $ 0 | ||
Allowance for credit losses | (32,332) | (36,241) | $ (31,752) | $ (41,507) |
Total mortgage loans receivable | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Movement in Mortgage Loans on Real Estate [Roll Forward] | ||||
Mortgage loans receivable, ending balance | 3,857,471 | 2,007,730 | ||
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] | ||||
Mortgage loans receivable, beginning balance | 3,553,737 | 2,354,059 | ||
Origination of mortgage loan receivables | 648,507 | 116,555 | ||
Repayment of mortgage loan receivables | (349,935) | (374,735) | ||
Sale of loans, net | 0 | |||
Proceeds from sales of mortgage loan receivables | (46,557) | |||
Non-cash disposition of loans via foreclosure | (45,000) | |||
Accretion/amortization of discount, premium and other fees | 5,162 | 3,408 | ||
Allowance for credit losses | (32,332) | (36,241) | $ (31,752) | $ (41,507) |
Release of asset-specific loan loss provision via foreclosure | 1,150 | |||
Provision expense for current expected credit loss (impact to earnings) | (580) | 4,116 | ||
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 | 0 | 30,518 | ||
Origination of mortgage loan receivables | 54,850 | 41,000 | ||
Repayment of mortgage loan receivables | 0 | (36) | ||
Sale of loans, net | (949) | |||
Proceeds from sales of mortgage loan receivables | 0 | |||
Non-cash disposition of loans via foreclosure | 0 | |||
Accretion/amortization of discount, premium and other fees | 0 | 0 | ||
Mortgage loans receivable, ending balance | $ 53,901 | $ 71,482 |
MORTGAGE LOAN RECEIVABLES - Pro
MORTGAGE LOAN RECEIVABLES - Provision for Loan Losses (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2022USD ($)loansecurity | Mar. 31, 2021USD ($) | Dec. 31, 2021USD ($)loansecurity | Dec. 31, 2018USD ($) | |
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Allowance for credit losses at beginning of period | $ 31,752 | $ 41,507 | $ 41,507 | |
Provision for current expected credit loss (implementation impact)(1) | 580 | (4,116) | ||
Foreclosure of loans subject to asset-specific reserve | 0 | (1,150) | ||
Allowance for credit losses at end of period | 32,332 | 36,241 | 31,752 | |
Principal balance of loans on non-accrual status | 79,877 | 80,229 | ||
Additional asset-specific reserve | 0 | 0 | ||
Total mortgage loan receivables held for investment, net, at amortized cost | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Allowance for credit losses at beginning of period | 31,752 | 41,507 | 41,507 | |
Allowance for credit losses at end of period | $ 32,332 | $ 36,241 | 31,752 | |
Number or loans in default | loan | 1 | |||
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 | $ 24,100 | $ 24,200 | ||
Number or loans in default | loan | 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] | ||||
Allowance for credit losses at end of period | $ 17,500 | $ 10,000 | ||
Principal balance of loans on non-accrual status | $ 25,200 | $ 25,600 | $ 45,000 | |
Number or loans in default | loan | 2 | 2 | ||
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 | ||
Number or loans in default | security | 1 | 1 |
MORTGAGE LOAN RECEIVABLES - Ind
MORTGAGE LOAN RECEIVABLES - Individually Impaired Loans (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | |
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total loans | [1] | $ 3,857,471 | $ 3,553,737 |
Subtotal loans, Year One | 632,638 | 2,396,303 | |
Subtotal loans, Year Two | 2,233,014 | 117,367 | |
Subtotal loans, Year Three | 117,930 | 585,959 | |
Subtotal loans, Year Four | 466,846 | 169,948 | |
Subtotal loans, Year 5 and Earlier | 337,463 | 214,228 | |
Subtotal mortgage loans receivable | 3,787,891 | 3,483,805 | |
Individually impaired loans, Year One | 0 | 0 | |
Individually impaired loans, Year Two | 0 | 0 | |
Individually impaired loans, Year Three | 0 | 0 | |
Individually impaired loans, Year Four | 0 | 0 | |
Individually impaired loans, Year Five and Earlier | 69,580 | 69,932 | |
Individually impaired loans | 69,580 | 69,932 | |
Total loans, Year One | 632,638 | 2,396,303 | |
Total loans, Year Two | 2,233,014 | 117,367 | |
Total loans, Year Three | 117,930 | 585,959 | |
Total loans, Year Four | 466,846 | 169,948 | |
Total loans, Year Five and Earlier | 407,043 | 284,160 | |
Accrued interest receivable | 11,900 | 12,600 | |
Office | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Year One | 76,325 | 784,556 | |
Year Two | 693,189 | 29,636 | |
Year Three | 29,650 | 121,346 | |
Year Four | 69,991 | 59,073 | |
Year Five and Earlier | 155,582 | 73,911 | |
Total loans | 1,024,737 | 1,068,522 | |
Multifamily | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Year One | 329,824 | 697,089 | |
Year Two | 666,979 | 3,131 | |
Year Three | 0 | 47,322 | |
Year Four | 23,464 | 0 | |
Year Five and Earlier | 0 | 0 | |
Total loans | 1,020,267 | 747,542 | |
Mixed Use | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Year One | 179,135 | 538,949 | |
Year Two | 459,776 | 84,600 | |
Year Three | 88,280 | 140,926 | |
Year Four | 140,948 | 0 | |
Year Five and Earlier | 0 | 0 | |
Total loans | 868,139 | 764,475 | |
Industrial | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Year One | 20,140 | 41,203 | |
Year Two | 95,757 | 0 | |
Year Three | 0 | 108,469 | |
Year Four | 110,202 | 0 | |
Year Five and Earlier | 0 | 0 | |
Total loans | 226,099 | 149,672 | |
Hospitality | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Year One | 0 | 41,635 | |
Year Two | 43,344 | 0 | |
Year Three | 0 | 43,666 | |
Year Four | 21,579 | 90,132 | |
Year Five and Earlier | 147,420 | 110,890 | |
Total loans | 212,343 | 286,323 | |
Retail | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Year One | 11,250 | 105,362 | |
Year Two | 105,649 | 0 | |
Year Three | 0 | 89,058 | |
Year Four | 66,269 | 0 | |
Year Five and Earlier | 10,472 | 25,486 | |
Total loans | 193,640 | 219,906 | |
Manufactured Housing | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Year One | 0 | 117,265 | |
Year Two | 97,873 | 0 | |
Year Three | 0 | 26,404 | |
Year Four | 26,437 | 0 | |
Year Five and Earlier | 3,934 | 3,941 | |
Total loans | 128,244 | 147,610 | |
Other | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Year One | 15,964 | 26,801 | |
Year Two | 26,878 | 0 | |
Year Three | 0 | 8,768 | |
Year Four | 7,956 | 20,743 | |
Year Five and Earlier | 20,055 | 0 | |
Total loans | 70,853 | 56,312 | |
Self-Storage | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Year One | 0 | 43,443 | |
Year Two | 43,569 | 0 | |
Year Three | 0 | 0 | |
Year Four | 0 | 0 | |
Year Five and Earlier | 0 | 0 | |
Total loans | 43,569 | 43,443 | |
South | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total loans | 1,067,323 | 937,125 | |
Northeast | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total loans | 1,186,408 | 1,080,652 | |
Midwest | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total loans | 440,893 | 434,157 | |
West | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total loans | 491,063 | 530,599 | |
Southwest | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total loans | $ 602,204 | $ 501,272 | |
[1] | Includes amounts relating to consolidated variable interest entities. Refer to Note 2 and Note 10. |
REAL ESTATE SECURITIES - Summar
REAL ESTATE SECURITIES - Summary of Securities (Details) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022USD ($)security | Dec. 31, 2021USD ($)security | |
Debt Securities, Available-for-sale [Line Items] | ||
Outstanding Face Amount | $ 2,002,444 | $ 2,053,585 |
Amortized Cost Basis | 673,511 | 707,372 |
Gross Unrealized Gains | 435 | 1,500 |
Gross Unrealized Losses | (11,146) | (5,572) |
Carrying value, before allowance for credit loss | $ 662,800 | $ 703,300 |
Number of Securities | security | 98 | 102 |
Weighted Average Coupon | 0.98% | 0.83% |
Weighted Average Yield | 1.96% | 1.67% |
Remaining Duration | 1 year 9 months 21 days | 2 years 21 days |
Amortized Cost Basis | $ 148 | |
Gross Unrealized Gains | 14 | |
Gross Unrealized Losses | 0 | |
Carrying Value | $ 162 | |
Number of equity securities | security | 2 | |
Allowance for current expected credit losses | $ (20) | $ (20) |
Total Amortized Cost Basis | 673,659 | 707,372 |
Total Gross Unrealized Gains | 449 | 1,500 |
Total real estate securities, Gross Unrealized Losses | (11,166) | $ (5,592) |
Carrying Value | $ 662,942 | |
Total number of Securities | security | 100 | 102 |
CMBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Outstanding Face Amount | $ 659,685 | $ 691,402 |
Amortized Cost Basis | 659,099 | 691,026 |
Gross Unrealized Gains | 8 | 775 |
Gross Unrealized Losses | (11,063) | (5,508) |
Carrying value, before allowance for credit loss | $ 648,044 | $ 686,293 |
Number of Securities | security | 71 | 73 |
Weighted Average Coupon | 1.82% | 1.57% |
Weighted Average Yield | 1.90% | 1.57% |
Remaining Duration | 1 year 9 months 21 days | 2 years 21 days |
Risk retention requirement, amount | $ 9,600 | $ 9,900 |
CMBS interest-only | ||
Debt Securities, Available-for-sale [Line Items] | ||
Outstanding Face Amount | 1,287,812 | 1,302,551 |
Amortized Cost Basis | 13,952 | 15,268 |
Gross Unrealized Gains | 352 | 617 |
Gross Unrealized Losses | (52) | 0 |
Carrying value, before allowance for credit loss | $ 14,252 | $ 15,885 |
Number of Securities | security | 13 | 13 |
Weighted Average Coupon | 0.57% | 0.45% |
Weighted Average Yield | 4.57% | 5.67% |
Remaining Duration | 1 year 9 months 3 days | 1 year 10 months 17 days |
Risk retention requirement, amount | $ 500 | $ 500 |
GNMA interest-only | ||
Debt Securities, Available-for-sale [Line Items] | ||
Outstanding Face Amount | 54,895 | 59,075 |
Amortized Cost Basis | 407 | 518 |
Gross Unrealized Gains | 75 | 105 |
Gross Unrealized Losses | (31) | (64) |
Carrying value, before allowance for credit loss | $ 451 | $ 559 |
Number of Securities | security | 14 | 14 |
Weighted Average Coupon | 0.36% | 0.38% |
Weighted Average Yield | 5.29% | 4.97% |
Remaining Duration | 3 years 6 months 18 days | 3 years 7 months 20 days |
Agency securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Outstanding Face Amount | $ 52 | $ 557 |
Amortized Cost Basis | 53 | 560 |
Gross Unrealized Gains | 0 | 3 |
Gross Unrealized Losses | 0 | 0 |
Carrying value, before allowance for credit loss | $ 53 | $ 563 |
Number of Securities | security | 0 | 2 |
Weighted Average Coupon | 4.00% | 2.47% |
Weighted Average Yield | 2.78% | 1.58% |
Remaining Duration | 1 year 11 months 1 day | 8 months 8 days |
REAL ESTATE SECURITIES - Securi
REAL ESTATE SECURITIES - Securities by Remaining Maturity (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Debt Securities, Available-for-sale [Line Items] | ||
Within 1 year | $ 276,201 | $ 305,980 |
1-5 years | 380,283 | 369,876 |
5-10 years | 154 | 10,486 |
After 10 years | 6,162 | 16,958 |
Total | 662,780 | 703,280 |
Allowance for current expected credit losses | (20) | (20) |
CMBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Within 1 year | 275,365 | 304,357 |
1-5 years | 366,518 | 354,670 |
5-10 years | 0 | 10,307 |
After 10 years | 6,162 | 16,958 |
Total | 648,045 | 686,292 |
CMBS interest-only | ||
Debt Securities, Available-for-sale [Line Items] | ||
Within 1 year | 756 | 1,018 |
1-5 years | 13,496 | 14,868 |
5-10 years | 0 | 0 |
After 10 years | 0 | 0 |
Total | 14,252 | 15,886 |
GNMA interest-only | ||
Debt Securities, Available-for-sale [Line Items] | ||
Within 1 year | 80 | 102 |
1-5 years | 216 | 278 |
5-10 years | 154 | 179 |
After 10 years | 0 | 0 |
Total | 450 | 559 |
Agency securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Within 1 year | 0 | 503 |
1-5 years | 53 | 60 |
5-10 years | 0 | 0 |
After 10 years | 0 | 0 |
Total | $ 53 | $ 563 |
REAL ESTATE SECURITIES - Additi
REAL ESTATE SECURITIES - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | ||
Sale of equity securities | $ 43 | $ 0 |
REAL ESTATE AND RELATED LEASE_3
REAL ESTATE AND RELATED LEASE INTANGIBLES, NET - Schedule of Real Estate Portfolio (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | |
Real estate and related lease intangibles, net | |||
Less: Accumulated depreciation and amortization | $ (223,481) | $ (229,271) | |
Real estate and related lease intangibles, net | [1] | 792,857 | 865,694 |
Below market lease intangibles, net (other liabilities)(1) | (32,298) | (33,203) | |
Accumulated amortization of below market lease | 13,100 | 12,800 | |
In-place leases and other intangibles | |||
Real estate and related lease intangibles, net | |||
Real estate | 130,385 | 142,335 | |
Undepreciated real estate and related lease intangibles | |||
Real estate and related lease intangibles, net | |||
Real estate | 1,016,338 | 1,094,965 | |
Land | |||
Real estate and related lease intangibles, net | |||
Real estate | 174,851 | 186,940 | |
Building | |||
Real estate and related lease intangibles, net | |||
Real estate | $ 711,102 | $ 765,690 | |
[1] | Includes amounts relating to consolidated variable interest entities. Refer to Note 2 and Note 10. |
REAL ESTATE AND RELATED LEASE_4
REAL ESTATE AND RELATED LEASE INTANGIBLES, NET - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | ||
Business Acquisition [Line Items] | ||||
Real estate held for sale | [1] | $ 55,412 | $ 25,179 | |
Accumulated depreciation and amortization | 223,481 | 229,271 | ||
Foreclosed properties held in real estate | 96,100 | 97,300 | ||
Unbilled rent receivables | 1,200 | 400 | ||
Unencumbered real estates | 99,300 | 85,900 | ||
Real estate operating income | 4,000 | $ 1,000 | ||
Disposal Group, Held-for-sale, Not Discontinued Operations | ||||
Business Acquisition [Line Items] | ||||
Undepreciated real estate and lease intangibles | 63,300 | 32,500 | ||
Accumulated depreciation and amortization | 7,900 | |||
Land | ||||
Business Acquisition [Line Items] | ||||
Undepreciated real estate and lease intangibles | 174,851 | 186,940 | ||
Land | Disposal Group, Held-for-sale, Not Discontinued Operations | ||||
Business Acquisition [Line Items] | ||||
Undepreciated real estate and lease intangibles | 14,100 | |||
Building | ||||
Business Acquisition [Line Items] | ||||
Undepreciated real estate and lease intangibles | 711,102 | $ 765,690 | ||
Building | Disposal Group, Held-for-sale, Not Discontinued Operations | ||||
Business Acquisition [Line Items] | ||||
Undepreciated real estate and lease intangibles | 45,600 | |||
In-place leases and other intangibles | Disposal Group, Held-for-sale, Not Discontinued Operations | ||||
Business Acquisition [Line Items] | ||||
Undepreciated real estate and lease intangibles | $ 3,600 | |||
[1] | Includes amounts relating to consolidated variable interest entities. Refer to Note 2 and Note 10. |
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 | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Real Estate [Abstract] | ||
Depreciation expense | $ 7,088 | $ 7,990 |
Amortization expense | 2,254 | 1,546 |
Total real estate depreciation and amortization expense | 9,342 | 9,536 |
Depreciation on corporate fixed assets | $ 8 | $ 25 |
REAL ESTATE AND RELATED LEASE_6
REAL ESTATE AND RELATED LEASE INTANGIBLES, NET - Unamortized Favorable Lease Intangibles (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Business Acquisition [Line Items] | |||
Gross intangible assets | $ 134,012 | $ 146,593 | |
Accumulated amortization | 64,385 | 67,500 | |
Net intangible assets | 69,627 | 79,093 | |
Unamortized favorable lease intangibles | 3,300 | $ 3,800 | |
Increase in operating lease income for amortization of below market lease intangibles acquired | 520 | $ 570 | |
Total | 444 | 478 | |
Above Market Leases | |||
Business Acquisition [Line Items] | |||
Reduction in operating lease income for amortization of above market lease intangibles acquired | $ (76) | $ (92) |
REAL ESTATE AND RELATED LEASE_7
REAL ESTATE AND RELATED LEASE INTANGIBLES, NET - Expected Future Amortization Expense (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Finite-Lived Intangible Assets [Line Items] | ||
Net intangible assets | $ 69,627 | $ 79,093 |
Adjustment to Operating Lease Income | ||
Finite-Lived Intangible Assets [Line Items] | ||
2022 | 679 | |
2023 | 906 | |
2024 | 906 | |
2025 | 906 | |
2026 | 906 | |
Thereafter | 24,715 | |
Net intangible assets | 29,018 | |
Amortization Expense | ||
Finite-Lived Intangible Assets [Line Items] | ||
2022 | 3,771 | |
2023 | 3,889 | |
2024 | 3,889 | |
2025 | 3,889 | |
2026 | 3,888 | |
Thereafter | 47,021 | |
Net intangible assets | $ 66,347 |
REAL ESTATE AND RELATED LEASE_8
REAL ESTATE AND RELATED LEASE INTANGIBLES, NET - Future Minimum Rental Payments Receivable (Details) $ in Thousands | Mar. 31, 2022USD ($) |
Real Estate [Abstract] | |
2022 | $ 47,218 |
2023 | 57,334 |
2024 | 55,718 |
2025 | 53,712 |
2026 | 50,402 |
Thereafter | 249,708 |
Total | $ 514,092 |
REAL ESTATE AND RELATED LEASE_9
REAL ESTATE AND RELATED LEASE INTANGIBLES, NET - Schedule of Real Estate Properties Acquired (Details) | 1 Months Ended | 3 Months Ended | ||
Feb. 28, 2021USD ($) | Mar. 31, 2022USD ($) | Mar. 31, 2021USD ($) | Dec. 31, 2020USD ($) | |
Business Acquisition [Line Items] | ||||
Real estate acquired through foreclosure | $ 43,750,000 | |||
Gain/(Loss) on Loan Foreclosure | 0 | |||
Purchase Price | 43,750,000 | |||
Realized (gain) loss on disposition of loan | $ 0 | (26,000) | ||
Provision for (release of) loan loss reserves | 874,000 | $ (4,251,000) | ||
New York, NY | Condos | ||||
Business Acquisition [Line Items] | ||||
Real estate acquired through foreclosure | $ 15,400,000 | |||
New York, NY | Condos | Measurement Input, Cap Rate | ||||
Business Acquisition [Line Items] | ||||
Measurement input | 0.055 | |||
Miami, FL | Hotel | ||||
Business Acquisition [Line Items] | ||||
Real estate acquired through foreclosure | $ 43,750,000 | |||
Gain/(Loss) on Loan Foreclosure | $ 0 | |||
Ownership Interest | 100.00% | |||
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 LEAS_10
REAL ESTATE AND RELATED LEASE INTANGIBLES, NET - Real Estate Properties Sold (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | ||||
Feb. 28, 2021USD ($)property | Mar. 31, 2022USD ($)property | Mar. 31, 2021USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | ||
Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Net Sales Proceeds | $ 79,473 | $ 43,750 | ||||
Net Book Value | [1] | 792,857 | $ 865,694 | |||
Realized gain (loss) on sale of real estate, net | 29,154 | 0 | ||||
2022 Disposal Properties | ||||||
Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Net Sales Proceeds | 79,404 | |||||
Net Book Value | 50,250 | |||||
Realized gain (loss) on sale of real estate, net | 29,154 | |||||
Defeasance cost | 3,700 | |||||
2022 Disposal Properties | Office | Ewing, NJ | ||||||
Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Net Sales Proceeds | 38,652 | |||||
Net Book Value | 24,134 | |||||
Realized gain (loss) on sale of real estate, net | $ 14,518 | |||||
Properties | property | 1 | |||||
2022 Disposal Properties | Warehouse | Conyers, GA | ||||||
Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Net Sales Proceeds | $ 40,752 | |||||
Net Book Value | 26,116 | |||||
Realized gain (loss) on sale of real estate, net | $ 14,636 | |||||
Properties | property | 1 | |||||
2021 Disposal Properties | ||||||
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 | |||||
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 | |||||
[1] | Includes amounts relating to consolidated variable interest entities. Refer to Note 2 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 | Mar. 31, 2022 | Dec. 31, 2021 | |
Schedule of Equity Method Investments [Line Items] | |||
Investment in unconsolidated joint ventures | [1] | $ 5,243 | $ 23,154 |
Grace Lake JV, LLC | |||
Schedule of Equity Method Investments [Line Items] | |||
Investment in unconsolidated joint ventures | 5,243 | 5,434 | |
24 Second Avenue Holdings LLC | |||
Schedule of Equity Method Investments [Line Items] | |||
Investment in unconsolidated joint ventures | $ 0 | $ 17,720 | |
[1] | Includes amounts relating to consolidated variable interest entities. Refer to Note 2 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 | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Schedule of Equity Method Investments [Line Items] | ||
Earnings (loss) from investment in unconsolidated joint ventures | $ 434 | $ 436 |
Grace Lake JV, LLC | ||
Schedule of Equity Method Investments [Line Items] | ||
Earnings (loss) from investment in unconsolidated joint ventures | 434 | 297 |
24 Second Avenue Holdings LLC | ||
Schedule of Equity Method Investments [Line Items] | ||
Earnings (loss) from investment in unconsolidated joint ventures | $ 0 | $ 139 |
INVESTMENT IN AND ADVANCES TO_5
INVESTMENT IN AND ADVANCES TO UNCONSOLIDATED JOINT VENTURES - Additional Information (Details) - Grace Lake JV, LLC - USD ($) | 1 Months Ended | 3 Months Ended | ||
Apr. 30, 2012 | Mar. 31, 2022 | Mar. 31, 2021 | Mar. 22, 2013 | |
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 | $ 600,000 | $ 0 | ||
Ladder Capital Financial Corporation | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Percentage of investment of operating partner | 81.00% | |||
LP Units | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership interest | 19.00% | |||
Limited liability company | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership interest | 19.00% |
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 | ||||||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | ||||
Schedule of Equity Method Investments [Line Items] | |||||||
Total assets | [1] | $ 5,974,197 | $ 5,851,252 | ||||
Total liabilities | [1] | 4,465,040 | 4,337,633 | ||||
Partners’/members’ capital | 1,509,157 | [1] | $ 1,530,839 | 1,513,619 | [1] | $ 1,548,425 | |
Total expenses | 55,694 | 31,120 | |||||
Net income (loss) | 19,154 | 432 | |||||
24 Second Avenue Holdings LLC | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Total assets | 68,368 | 109,873 | |||||
Total liabilities | 58,109 | 66,387 | |||||
Partners’/members’ capital | 10,259 | $ 43,486 | |||||
Total revenues | 5,073 | 4,514 | |||||
Total expenses | 3,337 | 3,323 | |||||
Net income (loss) | $ 1,736 | $ 1,191 | |||||
[1] | Includes amounts relating to consolidated variable interest entities. Refer to Note 2 and Note 10. |
DEBT OBLIGATIONS, NET - Schedul
DEBT OBLIGATIONS, NET - Schedule of Company's Debt Obligations (Details) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2022USD ($)Extension | Dec. 31, 2021USD ($)Extension | Mar. 23, 2020USD ($) | Feb. 26, 2020USD ($) | |
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Carrying Value of Debt Obligations | $ 634,708,000 | $ 444,577,000 | ||
Debt obligations | 3,287,909,000 | |||
Carrying Amount of Collateral | 0 | 0 | ||
Committed Loan Repurchase Facility | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Committed / Principal Amount | 1,300,000,000 | 1,200,000,000 | ||
Carrying Value of Debt Obligations | 412,308,000 | 184,517,000 | ||
Committed but Unfunded | 887,692,000 | 1,015,483,000 | ||
Carrying Amount of Collateral | 610,000,000 | 322,584,000 | ||
Fair Value of Collateral | 610,000,000 | 322,584,000 | ||
Committed Loan Repurchase Facility | Maturing on 19 December 2022 | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Committed / Principal Amount | 500,000,000 | 500,000,000 | ||
Carrying Value of Debt Obligations | 208,225,000 | 37,207,000 | ||
Committed but Unfunded | 291,775,000 | 462,793,000 | ||
Carrying Amount of Collateral | 309,099,000 | 82,966,000 | ||
Fair Value of Collateral | $ 309,099,000 | $ 82,966,000 | ||
Number of extension maturity periods | Extension | 2 | 2 | ||
Length of extension options | 12 months | 12 months | ||
Committed amount on credit agreement | $ 900,000,000 | $ 900,000,000 | ||
Committed Loan Repurchase Facility | Maturing On February 26 2023 | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Committed / Principal Amount | 100,000,000 | |||
Carrying Value of Debt Obligations | 45,290,000 | |||
Committed but Unfunded | 54,710,000 | |||
Carrying Amount of Collateral | 63,519,000 | |||
Fair Value of Collateral | $ 63,519,000 | |||
Number of extension maturity periods | Extension | 1 | 2 | ||
Length of extension options | 12 months | 12 months | ||
Committed Loan Repurchase Facility | Maturing On February 26 2022 | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Committed / Principal Amount | $ 100,000,000 | |||
Carrying Value of Debt Obligations | 45,290,000 | |||
Committed but Unfunded | 54,710,000 | |||
Carrying Amount of Collateral | 62,972,000 | |||
Fair Value of Collateral | 62,972,000 | |||
Committed Loan Repurchase Facility | Maturing on 19 December 2022 - 1 | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Committed / Principal Amount | $ 300,000,000 | 300,000,000 | ||
Carrying Value of Debt Obligations | 119,118,000 | 75,837,000 | ||
Committed but Unfunded | 180,882,000 | 224,163,000 | ||
Carrying Amount of Collateral | 184,616,000 | 127,926,000 | ||
Fair Value of Collateral | $ 184,616,000 | $ 127,926,000 | ||
Number of extension maturity periods | Extension | 3 | 3 | ||
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 / Principal Amount | $ 100,000,000 | $ 100,000,000 | ||
Carrying Value of Debt Obligations | 0 | 0 | ||
Committed but Unfunded | 100,000,000 | 100,000,000 | ||
Carrying Amount of Collateral | 0 | 0 | ||
Fair Value of Collateral | $ 0 | $ 0 | ||
Number of extension maturity periods | Extension | 1 | 1 | ||
Length of extension options | 12 months | 12 months | ||
Number of additional extension maturity periods | Extension | 2 | 2 | ||
Length of additional extension maturity periods | 6 months | 6 months | ||
Committed Loan Repurchase Facility | Maturing On 3 January 2023 | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Committed / Principal Amount | $ 100,000,000 | $ 100,000,000 | ||
Carrying Value of Debt Obligations | 39,675,000 | 26,183,000 | ||
Committed but Unfunded | 60,325,000 | 73,817,000 | ||
Carrying Amount of Collateral | 52,766,000 | 48,720,000 | ||
Fair Value of Collateral | 52,766,000 | 48,720,000 | ||
Committed Loan Repurchase Facility | Maturing On 22 January 2024 | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Committed / Principal Amount | 100,000,000 | |||
Carrying Value of Debt Obligations | 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 21 October 2022 | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Committed / Principal Amount | $ 100,000,000 | 100,000,000 | ||
Carrying Value of Debt Obligations | 0 | 0 | ||
Committed but Unfunded | 100,000,000 | 100,000,000 | ||
Carrying Amount of Collateral | 0 | 0 | ||
Fair Value of Collateral | $ 0 | $ 0 | ||
Length of extension options | 364 days | 364 days | ||
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 / Principal Amount | $ 635,114,000 | $ 862,794,000 | ||
Carrying Value of Debt Obligations | 28,839,000 | 44,139,000 | ||
Committed but Unfunded | 606,275,000 | 818,655,000 | ||
Carrying Amount of Collateral | 50,007,000 | 50,522,000 | ||
Fair Value of Collateral | 50,007,000 | 50,522,000 | ||
Committed Securities Repurchase Facility | Maturing on 23 December 2021 | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Committed / Principal Amount | 900,000,000 | |||
Uncommitted Securities Repurchase Facility | Various Date | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Carrying Value of Debt Obligations | 193,561,000 | 215,921,000 | ||
Carrying Amount of Collateral | 206,501,000 | 242,629,000 | ||
Fair Value of Collateral | 206,501,000 | 242,629,000 | ||
Restricted securities held-to-maturity | 2,000,000 | 2,100,000 | ||
Total Repurchase Facilities | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Committed / Principal Amount | 1,700,000,000 | 1,600,000,000 | ||
Carrying Value of Debt Obligations | 634,708,000 | 444,577,000 | ||
Committed but Unfunded | 1,258,853,000 | 1,371,344,000 | ||
Carrying Amount of Collateral | 866,508,000 | 615,735,000 | ||
Fair Value of Collateral | 866,508,000 | $ 615,735,000 | ||
Revolving Credit Facility | Maturing on 11 February 2023 | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Committed / Principal Amount | 266,430,000 | |||
Carrying Value of Debt Obligations | 0 | |||
Committed but Unfunded | $ 266,430,000 | |||
Number of extension maturity periods | Extension | 3 | 3 | ||
Length of extension options | 12 months | 12 months | ||
Revolving Credit Facility | Maturing on 11 February 2022 | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Committed / Principal Amount | $ 266,430,000 | |||
Carrying Value of Debt Obligations | 0 | |||
Committed but Unfunded | 266,430,000 | |||
Mortgage Loan Financing | Various Date | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Committed / Principal Amount | $ 646,126,000 | 690,927,000 | ||
Carrying Value of Debt Obligations | 648,666,000 | 693,797,000 | ||
Committed but Unfunded | 0 | 0 | ||
Carrying Amount of Collateral | 748,995,000 | 805,007,000 | ||
Fair Value of Collateral | 970,126,000 | 1,033,372,000 | ||
Secured financing facility | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Unamortized debt issuance costs | 257,000 | |||
Secured financing facility | Maturing On 6 May 2023 | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Committed / Principal Amount | 110,185,000 | 136,444,000 | ||
Carrying Value of Debt Obligations | 109,630,000 | 132,447,000 | ||
Committed but Unfunded | 0 | 0 | ||
Carrying Amount of Collateral | 199,338,000 | 244,399,000 | ||
Fair Value of Collateral | 199,459,000 | 244,553,000 | ||
Unamortized debt issuance costs | 300,000 | 1,900,000 | ||
Unamortized debt discount | 300,000 | 2,100,000 | ||
CLO Debt | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Committed / Principal Amount | 1,100,000,000 | |||
Unamortized debt issuance costs | 9,000,000 | |||
CLO Debt | Various Date | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Committed / Principal Amount | 1,064,365,000 | 1,064,365,000 | ||
Carrying Value of Debt Obligations | 1,055,402,000 | 1,054,774,000 | ||
Committed but Unfunded | 0 | 0 | ||
Carrying Amount of Collateral | 1,310,873,000 | 1,299,116,000 | ||
Fair Value of Collateral | 1,310,873,000 | 1,299,116,000 | ||
Unamortized debt issuance costs | 9,000,000 | 9,600,000 | ||
Borrowings from the FHLB | Various Date | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Committed / Principal Amount | 263,000,000 | 263,000,000 | ||
Carrying Value of Debt Obligations | 263,000,000 | 263,000,000 | ||
Committed but Unfunded | 0 | 0 | ||
Carrying Amount of Collateral | 298,937,000 | 301,792,000 | ||
Fair Value of Collateral | 298,937,000 | 301,792,000 | ||
Restricted securities held-to-maturity | 7,300,000 | 7,500,000 | ||
Senior Unsecured Notes | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Unamortized debt issuance costs | 17,889,000 | |||
Senior Unsecured Notes | Various Date | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Debt issued | 1,649,794,000 | 1,649,794,000 | ||
Senior Unsecured Notes | 1,631,905,000 | 1,631,108,000 | ||
Committed but Unfunded | 0 | 0 | ||
Unamortized debt issuance costs | 17,900,000 | 18,700,000 | ||
Total Debt Obligations | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Debt issued | 5,699,900,000 | 5,670,960,000 | ||
Debt obligations | 4,343,311,000 | 4,219,703,000 | ||
Committed but Unfunded | 1,525,283,000 | 1,637,774,000 | ||
Carrying Amount of Collateral | 3,424,651,000 | 3,266,049,000 | ||
Fair Value of Collateral | $ 3,645,903,000 | $ 3,494,568,000 | ||
Minimum | Committed Loan Repurchase Facility | Maturing on 19 December 2022 | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Interest rate | 1.90% | 1.61% | ||
Minimum | Committed Loan Repurchase Facility | Maturing On February 26 2023 | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Interest rate | 2.35% | |||
Minimum | Committed Loan Repurchase Facility | Maturing On February 26 2022 | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Interest rate | 2.06% | |||
Minimum | Committed Loan Repurchase Facility | Maturing on 19 December 2022 - 1 | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Interest rate | 2.15% | 1.86% | ||
Minimum | Committed Loan Repurchase Facility | Maturing on April 30 2024 | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Interest rate | 0.00% | 0.00% | ||
Minimum | Committed Loan Repurchase Facility | Maturing On 3 January 2023 | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Interest rate | 1.71% | 2.23% | ||
Minimum | Committed Loan Repurchase Facility | Maturing On 22 January 2024 | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Interest rate | 0.00% | |||
Minimum | Committed Loan Repurchase Facility | Maturing On 21 October 2022 | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Interest rate | 0.00% | 0.00% | ||
Minimum | Committed Securities Repurchase Facility | Maturing On 27 May 2023 | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Interest rate | 1.09% | 0.65% | ||
Minimum | Uncommitted Securities Repurchase Facility | Various Date | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Interest rate | 0.66% | 0.54% | ||
Minimum | Revolving Credit Facility | Maturing on 11 February 2023 | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Interest rate | 0.00% | |||
Minimum | Revolving Credit Facility | Maturing on 11 February 2022 | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Interest rate | 0.00% | |||
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 | Various Date | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Interest rate | 1.60% | 1.66% | ||
Minimum | Borrowings from the FHLB | Various Date | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Interest rate | 61.00% | 36.00% | ||
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 / Principal Amount | $ 500,000,000 | |||
Interest rate | 2.10% | 1.61% | ||
Maximum | Committed Loan Repurchase Facility | Maturing On February 26 2023 | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Interest rate | 3.10% | |||
Maximum | Committed Loan Repurchase Facility | Maturing On February 26 2022 | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Interest rate | 2.81% | |||
Maximum | Committed Loan Repurchase Facility | Maturing on 19 December 2022 - 1 | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Interest rate | 3.15% | 2.86% | ||
Maximum | Committed Loan Repurchase Facility | Maturing on April 30 2024 | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Interest rate | 0.00% | 0.00% | ||
Maximum | Committed Loan Repurchase Facility | Maturing On 3 January 2023 | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Interest rate | 1.71% | 2.23% | ||
Maximum | Committed Loan Repurchase Facility | Maturing On 22 January 2024 | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Interest rate | 0.00% | |||
Maximum | Committed Loan Repurchase Facility | Maturing On 21 October 2022 | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Interest rate | 0.00% | 0.00% | ||
Maximum | Committed Securities Repurchase Facility | Maturing On 27 May 2023 | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Interest rate | 1.42% | 1.05% | ||
Maximum | Uncommitted Securities Repurchase Facility | Various Date | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Interest rate | 2.06% | 2.06% | ||
Maximum | Revolving Credit Facility | Maturing on 11 February 2023 | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Interest rate | 0.00% | |||
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 | Various Date | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Interest rate | 4.05% | 1.75% | ||
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% | 5.25% |
DEBT OBLIGATIONS, NET - Committ
DEBT OBLIGATIONS, NET - Committed Loan and Securities Repurchase Facilities (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2022USD ($)agreement | Dec. 31, 2021USD ($) | |
Committed Securities Repurchase Facility | Maturing on 23 December 2021 | ||
Debt Instrument [Line Items] | ||
Consolidated CLO debt obligations | $ 900 | |
Committed Loan Repurchase Facility | ||
Debt Instrument [Line Items] | ||
Number of agreements | agreement | 7 | |
Consolidated CLO debt obligations | $ 1,300 | $ 1,200 |
DEBT OBLIGATIONS, NET - Revolvi
DEBT OBLIGATIONS, NET - Revolving Credit Facility (Details) | Nov. 25, 2019option | Mar. 31, 2022USD ($) | Dec. 31, 2021USD ($) |
Debt Instrument [Line Items] | |||
Number of additional options | option | 2 | ||
Length of extension options | 1 year | ||
Carrying Value of Debt Obligations | $ 634,708,000 | $ 444,577,000 | |
Revolving credit facility | London Interbank Offered Rate (LIBOR) | |||
Debt Instrument [Line Items] | |||
Committed amount on credit agreement | 266,400,000 | ||
Stated interest rate on debt instrument | 3.00% | ||
Letter of Credit | |||
Debt Instrument [Line Items] | |||
Committed amount on credit agreement | 25,000,000 | ||
Revolving credit facility | Maturing on 11 February 2023 | |||
Debt Instrument [Line Items] | |||
Carrying Value of Debt Obligations | 0 | ||
Consolidated CLO debt obligations | $ 266,430,000 |
DEBT OBLIGATIONS, NET - Debt Is
DEBT OBLIGATIONS, NET - Debt Issuance Costs (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Credit Agreement and Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Unamortized debt issuance expense | $ 3.5 | $ 2.9 |
DEBT OBLIGATIONS, NET - Uncommi
DEBT OBLIGATIONS, NET - Uncommitted Securities Repurchase Facilities (Details) - Uncommitted Securities Repurchase Facilities | 3 Months Ended |
Mar. 31, 2022 | |
Minimum | |
Debt Instrument [Line Items] | |
Advance rates | 75.00% |
Maximum | |
Debt Instrument [Line Items] | |
Advance rates | 95.00% |
DEBT OBLIGATIONS, NET - Mortgag
DEBT OBLIGATIONS, NET - Mortgage Loan Financing (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | |||
Amortization of premiums | $ 330 | $ 273 | |
Mortgage loan financing | |||
Debt Instrument [Line Items] | |||
Secured Debt | 648,700 | $ 693,800 | |
Net unamortized premiums | 2,800 | 3,200 | |
Amortization of premiums | (300) | $ 300 | |
Pledged assets, real estate and lease intangibles, net | $ 749,000 | $ 805,000 | |
Minimum | Mortgage loan financing | |||
Debt Instrument [Line Items] | |||
Stated interest rate on debt instrument | 3.75% | ||
Maximum | Mortgage loan financing | |||
Debt Instrument [Line Items] | |||
Stated interest rate on debt instrument | 6.16% |
DEBT OBLIGATIONS, NET - Secured
DEBT OBLIGATIONS, NET - Secured Financing Facility (Details) - USD ($) | Apr. 30, 2020 | Mar. 31, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | ||||
Debt obligations, net | [1] | $ 4,343,311,000 | $ 4,219,703,000 | |
Purchase Right | Maturing On 6 May 2023 | ||||
Debt Instrument [Line Items] | ||||
Unamortized debt issuance costs | 298,000 | |||
Secured financing facility | ||||
Debt Instrument [Line Items] | ||||
Debt obligations, net | 109,600,000 | |||
Unamortized debt issuance costs | 257,000 | |||
Secured financing facility | Maturing On 6 May 2023 | ||||
Debt Instrument [Line Items] | ||||
Issuance of purchase rights | 300,000 | |||
Unamortized debt issuance costs | $ 300,000 | $ 1,900,000 | ||
Class A Common Stock | ||||
Debt Instrument [Line Items] | ||||
Common stock, authorized (in shares) | 600,000,000 | 600,000,000 | ||
Common stock, par value (in dollars per share) | $ 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 | $ 2,000,000 | |||
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 2 and Note 10. |
DEBT OBLIGATIONS, NET - Collate
DEBT OBLIGATIONS, NET - Collateralized Loan Obligation Debt (Details) $ in Thousands | Dec. 02, 2021USD ($)security | Jul. 13, 2021USD ($) | Mar. 31, 2022USD ($) | Dec. 31, 2021USD ($) | |
Debt Instrument [Line Items] | |||||
Debt obligations, net | [1] | $ 4,343,311 | $ 4,219,703 | ||
Variable Interest Entity, Primary Beneficiary | |||||
Debt Instrument [Line Items] | |||||
Debt obligations, net | 1,055,402 | 1,054,774 | |||
Variable Interest Entity, Primary Beneficiary | Collateralized Loan Obligation | |||||
Debt Instrument [Line Items] | |||||
Subordinate and controlling interest | 15.60% | 18.00% | |||
Number of additional tranches | security | 2 | ||||
Subordinate and controlling interest as investment | 6.80% | ||||
CLO Debt | |||||
Debt Instrument [Line Items] | |||||
Unamortized debt issuance costs | 9,000 | ||||
Various Date | CLO Debt | |||||
Debt Instrument [Line Items] | |||||
Debt obligations, net | 1,100,000 | ||||
Unamortized debt issuance costs | $ 9,000 | $ 9,600 | |||
Non-Recourse Notes | CLO Debt | |||||
Debt Instrument [Line Items] | |||||
Debt obligations, net | $ 566,200 | $ 498,200 | |||
Loans financed | $ 729,400 | $ 607,500 | |||
Advance rate | 77.60% | 82.00% | |||
[1] | Includes amounts relating to consolidated variable interest entities. Refer to Note 2 and Note 10. |
DEBT OBLIGATIONS, NET - Borrowi
DEBT OBLIGATIONS, NET - Borrowings from the Federal Home Loan Bank (“FHLB”) (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | ||||
Cash, cash equivalents and restricted cash | $ 495,224 | $ 621,546 | $ 1,452,059 | $ 1,284,284 |
Tuebor Captive Insurance Company LLC | ||||
Debt Instrument [Line Items] | ||||
Amount restricted from transfer | 1,200,000 | |||
Borrowings from the FHLB | Tuebor Captive Insurance Company LLC | ||||
Debt Instrument [Line Items] | ||||
FHLB borrowings outstanding | $ 263,000 | |||
Weighted average term | 1 year 8 months 12 days | |||
Weighted average interest rate | 1.12% | |||
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 | $ 262,200 | |||
Cash, cash equivalents and restricted cash | $ 36,700 | |||
Borrowings from the FHLB | Tuebor Captive Insurance Company LLC | Minimum | ||||
Debt Instrument [Line Items] | ||||
Average term | 5 months 8 days | |||
Stated interest rate on debt instrument | 0.61% | |||
Advance rates | 71.70% | |||
Borrowings from the FHLB | Tuebor Captive Insurance Company LLC | Maximum | ||||
Debt Instrument [Line Items] | ||||
Average term | 2 years 6 months | |||
Stated interest rate on debt instrument | 2.74% | |||
Advance rates | 95.70% |
DEBT OBLIGATIONS, NET - Senior
DEBT OBLIGATIONS, NET - Senior Unsecured Notes (Details) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 | Jun. 23, 2021 | Jan. 30, 2020 | Sep. 25, 2017 |
Senior Unsecured Notes | |||||
Debt Instrument [Line Items] | |||||
Unamortized debt issuance costs | $ 17,889,000 | ||||
Various Date | Senior Unsecured Notes | |||||
Debt Instrument [Line Items] | |||||
Senior Unsecured Notes | 1,631,905,000 | $ 1,631,108,000 | |||
Loan refinance | 1,649,794,000 | 1,649,794,000 | |||
Unamortized debt issuance costs | 17,900,000 | $ 18,700,000 | |||
Senior Unsecured Notes | |||||
Debt Instrument [Line Items] | |||||
Senior Unsecured Notes | 1,600,000,000 | ||||
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% |
DEBT OBLIGATIONS, NET - Sched_2
DEBT OBLIGATIONS, NET - Schedule of Maturities (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Long-term Debt, Fiscal Year Maturity [Abstract] | ||
2022 | $ 419,166 | |
2023 | 250,586 | |
2024 | 594,019 | |
2025 | 526,006 | |
2026 | 26,424 | |
Thereafter | 1,487,611 | |
Subtotal | 3,303,812 | |
Premiums included in mortgage loan financing | 2,796 | |
Debt obligations | 3,287,909 | |
Senior Unsecured Notes | ||
Long-term Debt, Fiscal Year Maturity [Abstract] | ||
Unamortized debt issuance costs | (17,889) | |
Secured financing facility | ||
Long-term Debt, Fiscal Year Maturity [Abstract] | ||
Unamortized debt issuance costs | (257) | |
Secured financing facility | Maturing On 6 May 2023 | ||
Long-term Debt, Fiscal Year Maturity [Abstract] | ||
Unamortized debt issuance costs | (300) | $ (1,900) |
Consolidated CLO debt obligations | 110,185 | $ 136,444 |
Mortgage Loan Financing | ||
Long-term Debt, Fiscal Year Maturity [Abstract] | ||
Unamortized debt issuance costs | (255) | |
CLO Debt | ||
Long-term Debt, Fiscal Year Maturity [Abstract] | ||
Unamortized debt issuance costs | (9,000) | |
Consolidated CLO debt obligations | 1,100,000 | |
Purchase Right | Maturing On 6 May 2023 | ||
Long-term Debt, Fiscal Year Maturity [Abstract] | ||
Unamortized debt issuance costs | $ (298) |
DEBT OBLIGATIONS, NET - Financi
DEBT OBLIGATIONS, NET - Financial Covenants (Details) $ in Millions | Mar. 31, 2022USD ($) |
Debt Disclosure [Abstract] | |
Equity restricted as payment as a dividend | $ 871.4 |
DEBT OBLIGATIONS, NET - LIBOR T
DEBT OBLIGATIONS, NET - LIBOR Transition (Details) | Mar. 31, 2022 |
London Interbank Offered Rate (LIBOR) | |
Debt Instrument [Line Items] | |
Percentage of debt with variable rate | 84.90% |
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | |
Debt Instrument [Line Items] | |
Percentage of debt with variable rate | 15.10% |
DERIVATIVE INSTRUMENTS - Schedu
DERIVATIVE INSTRUMENTS - Schedule of Derivatives Outstanding (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2022 | Dec. 31, 2021 | ||
Derivative [Line Items] | |||
Notional | $ 124,250 | $ 114,121 | |
Fair value, asset | [1] | 234 | 402 |
Fair value, liability | 0 | 0 | |
1 Month LIBOR | |||
Derivative [Line Items] | |||
Notional | 15,050 | 84,621 | |
Fair value, asset | 55 | 60 | |
Fair value, liability | $ 0 | $ 0 | |
Remaining maturity | 2 years 5 months 8 days | 6 months 25 days | |
5-year Swap | |||
Derivative [Line Items] | |||
Notional | $ 25,400 | $ 6,500 | |
Fair value, asset | 42 | 76 | |
Fair value, liability | $ 0 | $ 0 | |
Remaining maturity | 3 months | 3 months | |
10-year Swap | |||
Derivative [Line Items] | |||
Notional | $ 83,800 | $ 23,000 | |
Fair value, asset | 137 | 266 | |
Fair value, liability | $ 0 | $ 0 | |
Remaining maturity | 3 months | 3 months | |
Futures | |||
Derivative [Line Items] | |||
Notional | $ 109,200 | $ 29,500 | |
Fair value, asset | 179 | 342 | |
Fair value, liability | $ 0 | $ 0 | |
[1] | Includes amounts relating to consolidated variable interest entities. Refer to Note 2 and Note 10. |
DERIVATIVE INSTRUMENTS - Sche_2
DERIVATIVE INSTRUMENTS - Schedule of Realized Gains (Losses) on Derivatives (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Derivative [Line Items] | ||
Unrealized Gain/(Loss) | $ (168) | $ 2 |
Realized Gain/(Loss) | 3,303 | 4,769 |
Net Result from Derivative Transactions | 3,135 | 4,771 |
Caps | ||
Derivative [Line Items] | ||
Unrealized Gain/(Loss) | (6) | |
Realized Gain/(Loss) | 0 | |
Net Result from Derivative Transactions | (6) | |
Futures | ||
Derivative [Line Items] | ||
Unrealized Gain/(Loss) | (162) | 2 |
Realized Gain/(Loss) | 3,303 | 4,769 |
Net Result from Derivative Transactions | $ 3,141 | $ 4,771 |
DERIVATIVE INSTRUMENTS - Additi
DERIVATIVE INSTRUMENTS - Additional Information (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Cash margins held as collateral for derivatives by counterparties | $ 0.8 | $ 0.5 |
OFFSETTING ASSETS AND LIABILI_3
OFFSETTING ASSETS AND LIABILITIES - Offsetting Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | |
Offsetting of derivative assets | |||
Gross amounts of recognized assets | $ 234 | $ 402 | |
Gross amounts offset in the balance sheet | 0 | 0 | |
Derivative instruments | [1] | 234 | 402 |
Gross amounts not offset in the balance sheet | |||
Financial instruments | 0 | 0 | |
Cash collateral received/(posted) | (805) | (526) | |
Net amount | $ 234 | $ 402 | |
[1] | Includes amounts relating to consolidated variable interest entities. Refer to Note 2 and Note 10. |
OFFSETTING ASSETS AND LIABILI_4
OFFSETTING ASSETS AND LIABILITIES - Offsetting Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Repurchase agreements | ||
Gross amounts of recognized liabilities | $ 634,708 | $ 444,577 |
Gross amounts offset in the balance sheet | 0 | 0 |
Net amounts of liabilities presented in the balance sheet | 634,708 | 444,577 |
Gross amounts not offset in the balance sheet | ||
Financial instruments collateral | 634,708 | 444,577 |
Cash collateral posted/(received) | 3,178 | 1,975 |
Net amount | 631,531 | 442,603 |
Total | ||
Gross amounts of recognized liabilities | 634,708 | 444,577 |
Gross amounts offset in the balance sheet | 0 | 0 |
Net amounts of liabilities presented in the balance sheet | 634,708 | 444,577 |
Gross amounts not offset in the balance sheet | ||
Financial instruments collateral | 634,708 | 444,577 |
Cash collateral posted/(received) | 3,983 | 1,975 |
Net amount | $ 630,726 | $ 442,603 |
CONSOLIDATED VARIABLE INTERES_3
CONSOLIDATED VARIABLE INTEREST ENTITIES (Details) $ in Thousands | Mar. 31, 2022USD ($)security | Dec. 31, 2021USD ($) | Mar. 31, 2021USD ($) | Dec. 31, 2020USD ($) | |||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||
Number of consolidated collateralized loan obligation variable interest entities | security | 2 | ||||||
Restricted cash | [1] | $ 63,462 | $ 72,802 | ||||
Accrued interest receivable | [1] | 14,450 | 13,645 | ||||
Other assets | [1] | 68,795 | 76,367 | ||||
Total assets | [1] | 5,974,197 | 5,851,252 | ||||
Debt obligations, net | [1] | 4,343,311 | 4,219,703 | ||||
Accrued expenses | [1] | 42,028 | 40,249 | ||||
Other liabilities | [1] | 52,938 | 50,090 | ||||
Total liabilities | [1] | 4,465,040 | 4,337,633 | ||||
Total equity | 1,509,157 | [1] | 1,513,619 | [1] | $ 1,530,839 | $ 1,548,425 | |
Total liabilities and equity | [1] | 5,974,197 | 5,851,252 | ||||
Variable Interest Entity, Primary Beneficiary | |||||||
Restricted cash | 0 | 369 | |||||
Mortgage loan receivables held for investment, net, at amortized cost | 1,310,873 | 1,299,116 | |||||
Accrued interest receivable | 4,699 | 4,587 | |||||
Other assets | 16,264 | 26,636 | |||||
Total assets | 1,331,836 | 1,330,708 | |||||
Debt obligations, net | 1,055,402 | 1,054,774 | |||||
Accrued expenses | 1,007 | 1,218 | |||||
Other liabilities | 64 | 65 | |||||
Total liabilities | 1,056,473 | 1,056,057 | |||||
Net equity in VIEs (eliminated in consolidation) | 275,363 | 274,651 | |||||
Total equity | 275,363 | 274,651 | |||||
Total liabilities and equity | $ 1,331,836 | $ 1,330,708 | |||||
[1] | Includes amounts relating to consolidated variable interest entities. Refer to Note 2 and Note 10. |
EQUITY STRUCTURE AND ACCOUNTS -
EQUITY STRUCTURE AND ACCOUNTS - Additional Information (Details) $ / shares in Units, $ in Thousands | Mar. 31, 2022USD ($)$ / sharesshares | Dec. 31, 2021USD ($)shares | Aug. 04, 2021USD ($) | Aug. 03, 2021USD ($) | Mar. 31, 2021USD ($) | Dec. 31, 2020USD ($) |
2014 Share Repurchase Authorization Program | ||||||
Class of Stock [Line Items] | ||||||
Remaining amount available for repurchase | $ 43,500 | |||||
Percentage of aggregate common stock outstanding under Repurchase Program | 2.90% | |||||
Closing price (in dollars per share) | $ / shares | $ 11.87 | |||||
Class A Common Stock | ||||||
Class of Stock [Line Items] | ||||||
Shares received per exchange (in shares) | 1 | |||||
Common stock, outstanding (in shares) | shares | 127,222,831 | 125,452,568 | ||||
Class A Common Stock | 2014 Share Repurchase Authorization Program | ||||||
Class of Stock [Line Items] | ||||||
Additional authorizations | $ 50,000 | $ 35,000 | ||||
Remaining amount available for repurchase | $ 43,511 | $ 44,122 | $ 37,888 | $ 38,102 | ||
Class B Common Stock | ||||||
Class of Stock [Line Items] | ||||||
Shares received per exchange (in shares) | 1 | |||||
Common stock, outstanding (in shares) | shares | 0 | |||||
Series REIT LP Units | ||||||
Class of Stock [Line Items] | ||||||
Shares received per exchange (in shares) | 1 | |||||
Series TRS LP Units | ||||||
Class of Stock [Line Items] | ||||||
Shares received per exchange (in shares) | 1 | |||||
Series TRS I LLC Units | ||||||
Class of Stock [Line Items] | ||||||
Shares received per exchange (in shares) | 1 | |||||
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 | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Treasury Stock [Roll Forward] | ||
Repurchases paid | $ (611) | $ (214) |
2014 Share Repurchase Authorization Program | ||
Treasury Stock [Roll Forward] | ||
Remaining amount available for repurchase | $ 43,500 | |
2014 Share Repurchase Authorization Program | Class A Common Stock | ||
Class of Stock [Line Items] | ||
Purchase of treasury stock (in shares) | 55,000 | 20,000 |
Treasury Stock [Roll Forward] | ||
Remaining amount available for repurchase | $ 44,122 | $ 38,102 |
Additional authorizations | 0 | |
Repurchases paid | (611) | (214) |
Repurchases unsettled | 0 | 0 |
Remaining amount available for repurchase | $ 43,511 | $ 37,888 |
EQUITY STRUCTURE AND ACCOUNTS_3
EQUITY STRUCTURE AND ACCOUNTS - Dividends Declared (Details) - $ / shares | Mar. 15, 2022 | Mar. 15, 2021 | Mar. 31, 2022 | Mar. 31, 2021 |
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 | $ 0.20 |
EQUITY STRUCTURE AND ACCOUNTS_4
EQUITY STRUCTURE AND ACCOUNTS - Changes in Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | ||
AOCI Attributable to Parent [Roll Forward] | |||
Beginning Balance | $ 1,513,619 | [1] | $ 1,548,425 |
Other comprehensive income (loss) | (6,641) | 6,849 | |
Ending Balance | 1,509,157 | [1] | 1,530,839 |
Accumulated Other Comprehensive Income (Loss) | |||
AOCI Attributable to Parent [Roll Forward] | |||
Beginning Balance | (4,112) | (10,463) | |
Other comprehensive income (loss) | (6,641) | 6,849 | |
Ending Balance | (10,753) | (3,614) | |
Accumulated Other Comprehensive Income (Loss) of Noncontrolling Interests | |||
AOCI Attributable to Parent [Roll Forward] | |||
Beginning Balance | (2) | (2) | |
Other comprehensive income (loss) | 0 | 0 | |
Ending Balance | (2) | (2) | |
Total Accumulated Other Comprehensive Income (Loss) | |||
AOCI Attributable to Parent [Roll Forward] | |||
Beginning Balance | (4,114) | (10,465) | |
Ending Balance | $ (10,755) | $ (3,616) | |
[1] | Includes amounts relating to consolidated variable interest entities. Refer to Note 2 and Note 10. |
NONCONTROLLING INTERESTS (Detai
NONCONTROLLING INTERESTS (Details) - Consolidated Joint Venture $ in Millions | Mar. 31, 2022USD ($)Joint_Ventureproperty |
Noncontrolling Interest [Line Items] | |
Number of consolidated joint ventures | Joint_Venture | 5 |
Isla Vista, CA | Student Housing | |
Noncontrolling Interest [Line Items] | |
Number of real estate properties | property | 40 |
Property book value | $ 80.4 |
Richmond, VA | Office Building | |
Noncontrolling Interest [Line Items] | |
Number of real estate properties | property | 11 |
Property book value | $ 69.2 |
Oakland County, MI | Office Building | |
Noncontrolling Interest [Line Items] | |
Property book value | 8.4 |
Miami, FL | Apartment Building | |
Noncontrolling Interest [Line Items] | |
Property book value | 37.4 |
Stillwater, OK | Apartment Building | |
Noncontrolling Interest [Line Items] | |
Property book value | $ 18 |
Minimum | Consolidated Joint Ventures | |
Noncontrolling Interest [Line Items] | |
Noncontrolling interest ownership | 10.00% |
Maximum | 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 | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Weighted average shares outstanding: | ||
Basic (in shares) | 124,305,943 | 123,974,970 |
Diluted (in shares) | 125,478,001 | 124,324,683 |
Class A Common Stock | ||
Earnings Per Share | ||
Basic and Diluted Net income (loss) available for Class A common shareholders | $ 19,032 | $ 192 |
Diluted Net income (loss) available for Class A common shareholders | $ 19,032 | $ 192 |
Weighted average shares outstanding: | ||
Basic (in shares) | 124,305,943 | 123,974,970 |
Diluted (in shares) | 125,478,001 | 124,324,683 |
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 | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Denominator: | ||
Weighted average number of shares of Class A common stock outstanding (in shares) | 124,305,943 | 123,974,970 |
Basic net income (loss) per share of Class A common stock (in dollars per share) | $ 0.15 | $ 0 |
Denominator: | ||
Weighted average number of shares of Class A common stock outstanding (in shares) | 124,305,943 | 123,974,970 |
Diluted weighted average number of shares of Class A common stock outstanding (in shares) | 125,478,001 | 124,324,683 |
Diluted net income (loss) per share of Class A common stock (in dollars per share) | $ 0.15 | $ 0 |
Class A Common Stock | ||
Numerator: | ||
Net income (loss) attributable to Class A common shareholders | $ 19,032 | $ 192 |
Denominator: | ||
Weighted average number of shares of Class A common stock outstanding (in shares) | 124,305,943 | 123,974,970 |
Basic net income (loss) per share of Class A common stock (in dollars per share) | $ 0.15 | $ 0 |
Numerator: | ||
Net income (loss) attributable to Class A common shareholders | $ 19,032 | $ 192 |
Net income (loss) attributable to Class A common shareholders | $ 19,032 | $ 192 |
Denominator: | ||
Weighted average number of shares of Class A common stock outstanding (in shares) | 124,305,943 | 123,974,970 |
Diluted weighted average number of shares of Class A common stock outstanding (in shares) | 125,478,001 | 124,324,683 |
Diluted net income (loss) per share of Class A common stock (in dollars per share) | $ 0.15 | $ 0 |
Class A Common Stock | Restricted Stock | ||
Denominator: | ||
Incremental shares of stock based compensation (in shares) | 1,172,058 | 349,713 |
STOCK BASED AND OTHER COMPENS_3
STOCK BASED AND OTHER COMPENSATION PLANS - Stock Based Compensation Plans Summary (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock Based Compensation Expense | $ 20,412 | $ 5,276 |
Recognized equity based compensation expense | 20,412 | 5,298 |
Phantom Equity Investment Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Recognized equity based compensation expense | $ 0 | $ 22 |
STOCK BASED AND OTHER COMPENS_4
STOCK BASED AND OTHER COMPENSATION PLANS - Summary of Grants (Details) - Restricted Stock - $ / shares | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of Shares (in shares) | 2,843,340 | |
Class A Common Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of Shares (in shares) | 2,843,340 | 747,713 |
Weighted Average Fair Value Per Share (in dollars per share) | $ 11.89 | $ 9.81 |
STOCK BASED AND OTHER COMPENS_5
STOCK BASED AND OTHER COMPENSATION PLANS - Nonvested Shares Outstanding (Details) $ / shares in Units, $ in Millions | 3 Months Ended |
Mar. 31, 2022USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares [Roll Forward] | |
Unrecognized compensation cost | $ | $ 23.6 |
Period of recognition for unrecognized compensation costs | 28 months 21 days |
Remaining vesting period | 36 months |
Restricted Stock | |
Number of Shares Nonvested Other than Options [Roll Forward] | |
Nonvested/Outstanding (in shares) | 2,145,380 |
Granted (in shares) | 2,843,340 |
Vested (in shares) | (2,394,618) |
Forfeited (in shares) | (66,026) |
Nonvested/Outstanding (in shares) | 2,528,076 |
Stock Options | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares [Roll Forward] | |
Nonvested/Outstanding (in shares) | 623,788 |
Granted (in shares) | 0 |
Forfeited (in shares) | 0 |
Expired (in shares) | 0 |
Nonvested/Outstanding (in shares) | 623,788 |
Exercisable (in shares) | 623,788 |
Stock Options, Warrants And Rights | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares [Roll Forward] | |
Weighted-average exercise price of outstanding options, warrants and rights | $ / shares | $ 14.84 |
STOCK BASED AND OTHER COMPENS_6
STOCK BASED AND OTHER COMPENSATION PLANS - Omnibus Incentive Plan (Details) $ in Millions | Feb. 18, 2022USD ($)shares | Jan. 31, 2022USD ($)shares | Jan. 01, 2021USD ($)securityshares | Jan. 31, 2022 | Mar. 31, 2022USD ($)employeeshares | Mar. 31, 2021shares | Jan. 01, 2022security |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Aggregate value of awards granted | $ | $ 18 | $ 7 | |||||
Period of recognition for unrecognized compensation costs | 28 months 21 days | ||||||
Unrecognized compensation cost | $ | $ 23.6 | ||||||
Restricted Stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Granted (in shares) | 2,843,340 | ||||||
Forfeited (in shares) | 66,026 | ||||||
Restricted Stock | Class A Common Stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Granted (in shares) | 2,843,340 | 747,713 | |||||
Non-Management Grantee | Mr. Miceli, Ms. Porcella and certain Non-Management Grantees | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Granted (in shares) | 1,254,085 | ||||||
Number of shares of unrestricted stock | 33.33% | ||||||
Non-Management Grantee | Other Non-ManagementGrantees | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Granted (in shares) | 250,430 | ||||||
Non-Management Grantee | Time-Based Vesting | Mr. Miceli, Ms. Porcella and certain Non-Management Grantees | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting percentage | 33.33% | ||||||
Non-Management Grantee | Time-Based Vesting | Other Non-ManagementGrantees | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting percentage | 50.00% | ||||||
Non-Management Grantee | Performance Based Vesting | Mr. Miceli, Ms. Porcella and certain Non-Management Grantees | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting percentage | 33.33% | ||||||
Non-Management Grantee | Performance Based Vesting | Other Non-ManagementGrantees | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting percentage | 50.00% | ||||||
Non-Management Grantee | Performance Based Vesting and Catch-up Provision | Mr. Miceli, Ms. Porcella and certain Non-Management Grantees | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting percentage | 33.33% | ||||||
Non-Management Grantee | Performance Based Vesting and Catch-up Provision | Other Non-ManagementGrantees | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting percentage | 50.00% | ||||||
Non-Management Grantee | Restricted Stock | Class A Common Stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Aggregate value of awards granted | $ | $ 15.4 | ||||||
Granted (in shares) | 1,293,853 | ||||||
Non-Management Grantee | Restricted Stock | 2014 Omnibus Incentive Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of installments | security | 3 | 3 | |||||
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 | ||||||
Board of Directors | Restricted Stock | Class A Common Stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Granted (in shares) | 31,860 | ||||||
Grant date fair value | $ | $ 0.4 | ||||||
Vesting period | 1 year | ||||||
Management Grantees | 2014 Omnibus Incentive Plan | Class A Common Stock | Ms. McCormack and Mr. Perelman | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares of unrestricted stock | 66.67% | ||||||
Management Grantees | Restricted Stock | Class A Common Stock | Time and Performance Based Vesting | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Aggregate value of awards granted | $ | $ 2.5 | ||||||
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 | 39 | ||||||
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% | ||||||
Management Grantees | Restricted Stock | 2014 Omnibus Incentive Plan | Class A Common Stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Granted (in shares) | 1,517,627 | ||||||
Management Grantees | Restricted Stock | 2014 Omnibus Incentive Plan | Class A Common Stock | Performance Based Vesting | Ms. McCormack and Mr. Perelman | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting percentage | 33.33% | ||||||
Management Grantees | Restricted Stock | 2014 Omnibus Incentive Plan | Class A Common Stock | Time and Performance Based Vesting | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Granted (in shares) | 210,662 |
STOCK BASED AND OTHER COMPENS_7
STOCK BASED AND OTHER COMPENSATION PLANS - Bonus Payments (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Bonus expense | $ 20,412 | $ 5,298 | |
Bonus Expense | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Bonus expense | $ 5,200 | $ 1,100 | $ 11,000 |
FAIR VALUE OF FINANCIAL INSTR_3
FAIR VALUE OF FINANCIAL INSTRUMENTS - Estimated Fair Values of Financial Instruments (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2022USD ($) | Dec. 31, 2021USD ($) | Mar. 31, 2021USD ($) | Dec. 31, 2020USD ($) | |
Assets: | ||||
Fair Value | $ 3,873,256 | $ 3,516,524 | ||
Allowance for credit losses | (32,332) | (31,752) | $ (36,241) | $ (41,507) |
Liabilities: | ||||
Fair Value | $ 4,313,754 | $ 4,282,888 | ||
Total mortgage loan receivables held for investment, net, at amortized cost | ||||
Liabilities: | ||||
Period of short interest rate reset risk | 30 days | 30 days | ||
CLO debt | ||||
Liabilities: | ||||
Period of short interest rate reset risk | 30 days | 30 days | ||
Recurring | ||||
Assets: | ||||
Fair Value | $ 653,046 | $ 693,266 | ||
Recurring | CMBS | Internal Model Third Party Inputs Valuation Technique | ||||
Assets: | ||||
Principal Amount | 659,685 | 691,402 | ||
Amortized Cost Basis/Purchase Price | 659,097 | 691,026 | ||
Fair Value | $ 648,042 | $ 686,293 | ||
Liabilities: | ||||
Financial instruments, measurement input | 0.0190 | 0.0157 | ||
Weighted average remaining maturity/duration | 1 year 9 months 21 days | 2 years 21 days | ||
Recurring | CMBS interest-only | Internal Model Third Party Inputs Valuation Technique | ||||
Assets: | ||||
Principal Amount | $ 1,287,812 | $ 1,302,551 | ||
Amortized Cost Basis/Purchase Price | 13,952 | 15,268 | ||
Fair Value | $ 14,253 | $ 15,885 | ||
Liabilities: | ||||
Financial instruments, measurement input | 0.0457 | 0.0567 | ||
Weighted average remaining maturity/duration | 1 year 9 months 3 days | 1 year 10 months 17 days | ||
Recurring | GNMA interest-only | Internal Model Third Party Inputs Valuation Technique | ||||
Assets: | ||||
Principal Amount | $ 54,895 | $ 59,075 | ||
Amortized Cost Basis/Purchase Price | 407 | 518 | ||
Fair Value | $ 451 | $ 559 | ||
Liabilities: | ||||
Financial instruments, measurement input | 0.0529 | 0.0497 | ||
Weighted average remaining maturity/duration | 3 years 6 months 18 days | 3 years 7 months 20 days | ||
Recurring | Agency securities | Internal Model Third Party Inputs Valuation Technique | ||||
Assets: | ||||
Principal Amount | $ 52 | $ 557 | ||
Amortized Cost Basis/Purchase Price | 53 | 560 | ||
Fair Value | $ 53 | $ 563 | ||
Liabilities: | ||||
Financial instruments, measurement input | 0.0278 | 0.0158 | ||
Weighted average remaining maturity/duration | 1 year 11 months 1 day | 8 months 8 days | ||
Recurring | Equity Securities | ||||
Assets: | ||||
Amortized Cost Basis/Purchase Price | $ 148 | |||
Fair Value | 162 | |||
Recurring | Total mortgage loan receivables held for investment, net, at amortized cost | Discounted Cash Flow | ||||
Assets: | ||||
Principal Amount | 3,887,434 | $ 3,581,919 | ||
Amortized Cost Basis/Purchase Price | 3,857,464 | 3,553,737 | ||
Fair Value | 3,797,372 | 3,494,254 | ||
Allowance for credit losses | $ (32,300) | $ (31,800) | ||
Liabilities: | ||||
Financial instruments, measurement input | 0.0545 | 0.0565 | ||
Weighted average remaining maturity/duration | 1 year 8 months 4 days | 1 year 9 months 3 days | ||
Recurring | Mortgage loan receivables held for sale | Internal Model Third Party Inputs Valuation Technique | ||||
Assets: | ||||
Principal Amount | $ 54,850 | |||
Amortized Cost Basis/Purchase Price | 53,901 | |||
Fair Value | $ 53,901 | |||
Liabilities: | ||||
Financial instruments, measurement input | 0.0444 | |||
Weighted average remaining maturity/duration | 9 years 10 months 28 days | |||
Recurring | FHLB stock | FHLB stock | ||||
Assets: | ||||
Principal Amount | $ 11,835 | $ 11,835 | ||
Amortized Cost Basis/Purchase Price | 11,835 | 11,835 | ||
Fair Value | $ 11,835 | $ 11,835 | ||
Liabilities: | ||||
Financial instruments, measurement input | 0.0300 | 0.0325 | ||
Recurring | Nonhedge derivatives | Counterparty Quotations Valuation Technique | ||||
Assets: | ||||
Nonhedge derivative assets | $ 124,250 | $ 114,121 | ||
Amortized Cost Basis/Purchase Price | 234 | 402 | ||
Fair Value | $ 234 | $ 402 | ||
Liabilities: | ||||
Weighted average remaining maturity/duration | 9 months 3 days | 3 months 18 days | ||
Recurring | Repurchase agreements - short-term | Discounted Cash Flow | ||||
Liabilities: | ||||
Principal Amount | $ 621,745 | $ 418,394 | ||
Amortized Cost Basis/Purchase Price | 621,745 | 418,394 | ||
Fair Value | $ 621,745 | $ 418,394 | ||
Financial instruments, measurement input | 0.0134 | 0.0089 | ||
Weighted average remaining maturity/duration | 6 months 14 days | 5 months 15 days | ||
Recurring | Repurchase agreements - long-term | Discounted Cash Flow | ||||
Liabilities: | ||||
Principal Amount | $ 12,962 | $ 26,183 | ||
Amortized Cost Basis/Purchase Price | 12,962 | 26,183 | ||
Fair Value | $ 12,962 | $ 26,183 | ||
Financial instruments, measurement input | 0.0093 | 0.0221 | ||
Weighted average remaining maturity/duration | 1 year 1 month 24 days | 1 year 3 days | ||
Recurring | Mortgage loan financing | Discounted Cash Flow | ||||
Liabilities: | ||||
Principal Amount | $ 646,126 | $ 690,927 | ||
Amortized Cost Basis/Purchase Price | 648,666 | 693,797 | ||
Fair Value | $ 662,672 | $ 709,695 | ||
Financial instruments, measurement input | 0.0485 | 0.0483 | ||
Weighted average remaining maturity/duration | 3 years | 3 years 3 months 18 days | ||
Recurring | Secured financing facility | Discounted Cash Flow | ||||
Liabilities: | ||||
Principal Amount | $ 110,185 | $ 136,444 | ||
Amortized Cost Basis/Purchase Price | 109,630 | 132,447 | ||
Fair Value | $ 107,883 | $ 133,389 | ||
Financial instruments, measurement input | 0.0991 | 0.1075 | ||
Weighted average remaining maturity/duration | 1 year 1 month 6 days | 1 year 4 months 6 days | ||
Recurring | CLO debt | Discounted Cash Flow | ||||
Liabilities: | ||||
Principal Amount | $ 1,064,365 | $ 1,064,365 | ||
Amortized Cost Basis/Purchase Price | 1,055,402 | 1,054,774 | ||
Fair Value | $ 1,055,402 | $ 1,054,774 | ||
Financial instruments, measurement input | 0.0214 | 0.0204 | ||
Weighted average remaining maturity/duration | 16 years 8 months 4 days | 16 years 11 months 1 day | ||
Recurring | Borrowings from the FHLB | Discounted Cash Flow | ||||
Liabilities: | ||||
Principal Amount | $ 263,000 | $ 263,000 | ||
Amortized Cost Basis/Purchase Price | 263,000 | 263,000 | ||
Fair Value | $ 263,303 | $ 263,414 | ||
Financial instruments, measurement input | 0.0096 | 0.0091 | ||
Weighted average remaining maturity/duration | 1 year 8 months 15 days | 1 year 11 months 12 days | ||
Recurring | Senior unsecured notes | Internal Model Third Party Inputs Valuation Technique | ||||
Liabilities: | ||||
Principal Amount | $ 1,649,794 | $ 1,649,794 | ||
Amortized Cost Basis/Purchase Price | 1,631,905 | 1,631,108 | ||
Fair Value | $ 1,589,787 | $ 1,677,039 | ||
Financial instruments, measurement input | 0.0466 | 0.0466 | ||
Weighted average remaining maturity/duration | 5 years 6 months | 5 years 8 months 26 days | ||
Recurring | Provision for current expected credit reserves/losses | ||||
Assets: | ||||
Allowance for credit losses | $ (20) |
FAIR VALUE OF FINANCIAL INSTR_4
FAIR VALUE OF FINANCIAL INSTRUMENTS - Summary of Financial Assets and Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Assets: | ||||
Fair value of assets | $ 3,873,256 | $ 3,516,524 | ||
Allowance for current expected credit losses | (32,332) | (31,752) | $ (36,241) | $ (41,507) |
Liabilities: | ||||
Fair value of liabilities | 4,313,754 | 4,282,888 | ||
Repurchase agreements - short-term | ||||
Liabilities: | ||||
Principal Amount | 621,745 | 418,394 | ||
Fair value of liabilities | 621,745 | 418,394 | ||
Repurchase agreements - long-term | ||||
Liabilities: | ||||
Principal Amount | 12,962 | 26,183 | ||
Fair value of liabilities | 12,962 | 26,183 | ||
Mortgage loan financing | ||||
Liabilities: | ||||
Principal Amount | 646,126 | 690,927 | ||
Fair value of liabilities | 662,672 | 709,695 | ||
Secured financing facility | ||||
Liabilities: | ||||
Principal Amount | 110,185 | 136,444 | ||
Fair value of liabilities | 107,883 | 133,389 | ||
CLO debt | ||||
Liabilities: | ||||
Principal Amount | 1,064,365 | 1,064,365 | ||
Fair value of liabilities | 1,055,402 | 1,054,774 | ||
Borrowings from the FHLB | ||||
Liabilities: | ||||
Principal Amount | 263,000 | 263,000 | ||
Fair value of liabilities | 263,303 | 263,414 | ||
Senior unsecured notes | ||||
Liabilities: | ||||
Principal Amount | 1,649,794 | 1,649,794 | ||
Fair value of liabilities | 1,589,787 | 1,677,039 | ||
CMBS | ||||
Assets: | ||||
Principal Amount | 10,059 | 10,326 | ||
Fair value of assets | 9,639 | 9,894 | ||
CMBS interest-only | ||||
Assets: | ||||
Principal Amount | 9,104 | 9,370 | ||
Fair value of assets | 509 | 541 | ||
Total mortgage loan receivables held for investment, net, at amortized cost | ||||
Assets: | ||||
Principal Amount | 3,887,434 | 3,581,920 | ||
Fair value of assets | 3,797,372 | 3,494,254 | ||
FHLB stock | ||||
Assets: | ||||
Principal Amount | 11,835 | 11,835 | ||
Fair value of assets | 11,835 | 11,835 | ||
Mortgage loan receivables held for sale | ||||
Assets: | ||||
Principal Amount | 54,850 | |||
Fair value of assets | 53,901 | |||
Level 1 | ||||
Assets: | ||||
Fair value of assets | 0 | 0 | ||
Liabilities: | ||||
Fair value of liabilities | 0 | 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 | 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 | ||
Level 1 | Total mortgage loan receivables held for investment, net, at amortized cost | ||||
Assets: | ||||
Fair value of assets | 0 | 0 | ||
Level 1 | FHLB stock | ||||
Assets: | ||||
Fair value of assets | 0 | 0 | ||
Level 1 | Mortgage loan receivables held for sale | ||||
Assets: | ||||
Fair value of assets | 0 | |||
Level 2 | ||||
Assets: | ||||
Fair value of assets | 0 | 0 | ||
Liabilities: | ||||
Fair value of liabilities | 0 | 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 | 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 | ||
Level 2 | Total mortgage loan receivables held for investment, net, at amortized cost | ||||
Assets: | ||||
Fair value of assets | 0 | 0 | ||
Level 2 | FHLB stock | ||||
Assets: | ||||
Fair value of assets | 0 | 0 | ||
Level 2 | Mortgage loan receivables held for sale | ||||
Assets: | ||||
Fair value of assets | 0 | |||
Level 3 | ||||
Assets: | ||||
Fair value of assets | 3,873,256 | 3,516,524 | ||
Liabilities: | ||||
Fair value of liabilities | 4,313,754 | 4,282,888 | ||
Level 3 | Repurchase agreements - short-term | ||||
Liabilities: | ||||
Fair value of liabilities | 621,745 | 418,394 | ||
Level 3 | Repurchase agreements - long-term | ||||
Liabilities: | ||||
Fair value of liabilities | 12,962 | 26,183 | ||
Level 3 | Mortgage loan financing | ||||
Liabilities: | ||||
Fair value of liabilities | 662,672 | 709,695 | ||
Level 3 | Secured financing facility | ||||
Liabilities: | ||||
Fair value of liabilities | 107,883 | 133,389 | ||
Level 3 | CLO debt | ||||
Liabilities: | ||||
Fair value of liabilities | 1,055,402 | 1,054,774 | ||
Level 3 | Borrowings from the FHLB | ||||
Liabilities: | ||||
Fair value of liabilities | 263,303 | 263,414 | ||
Level 3 | Senior unsecured notes | ||||
Liabilities: | ||||
Fair value of liabilities | 1,589,787 | 1,677,039 | ||
Level 3 | CMBS | ||||
Assets: | ||||
Fair value of assets | 9,639 | 9,894 | ||
Level 3 | CMBS interest-only | ||||
Assets: | ||||
Fair value of assets | 509 | 541 | ||
Level 3 | Total mortgage loan receivables held for investment, net, at amortized cost | ||||
Assets: | ||||
Fair value of assets | 3,797,372 | 3,494,254 | ||
Level 3 | FHLB stock | ||||
Assets: | ||||
Fair value of assets | 11,835 | 11,835 | ||
Level 3 | Mortgage loan receivables held for sale | ||||
Assets: | ||||
Fair value of assets | 53,901 | |||
Recurring | ||||
Assets: | ||||
Fair value of assets | 653,046 | 693,266 | ||
Recurring | CMBS | ||||
Assets: | ||||
Principal Amount | 649,626 | 681,076 | ||
Fair value of assets | 638,403 | 676,398 | ||
Recurring | CMBS interest-only | ||||
Assets: | ||||
Principal Amount | 1,278,708 | 1,293,181 | ||
Fair value of assets | 13,743 | 15,344 | ||
Recurring | GNMA interest-only | ||||
Assets: | ||||
Principal Amount | 54,895 | 59,075 | ||
Fair value of assets | 451 | 559 | ||
Recurring | Agency securities | ||||
Assets: | ||||
Principal Amount | 52 | 557 | ||
Fair value of assets | 53 | 563 | ||
Recurring | Equity Securities | ||||
Assets: | ||||
Fair value of assets | 162 | |||
Recurring | Nonhedge derivatives | ||||
Assets: | ||||
Fair value of assets | 234 | 402 | ||
Nonhedge derivative assets | 124,250 | 114,121 | ||
Recurring | Level 1 | ||||
Assets: | ||||
Fair value of assets | 162 | 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 | Equity Securities | ||||
Assets: | ||||
Fair value of assets | 162 | |||
Recurring | Level 1 | Nonhedge derivatives | ||||
Assets: | ||||
Fair value of assets | 0 | 0 | ||
Recurring | Level 2 | ||||
Assets: | ||||
Fair value of assets | 234 | 402 | ||
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 | Equity Securities | ||||
Assets: | ||||
Fair value of assets | 0 | |||
Recurring | Level 2 | Nonhedge derivatives | ||||
Assets: | ||||
Fair value of assets | 234 | 402 | ||
Recurring | Level 3 | ||||
Assets: | ||||
Fair value of assets | 652,650 | 692,864 | ||
Recurring | Level 3 | CMBS | ||||
Assets: | ||||
Fair value of assets | 638,403 | 676,398 | ||
Recurring | Level 3 | CMBS interest-only | ||||
Assets: | ||||
Fair value of assets | 13,743 | 15,344 | ||
Recurring | Level 3 | GNMA interest-only | ||||
Assets: | ||||
Fair value of assets | 451 | 559 | ||
Recurring | Level 3 | Agency securities | ||||
Assets: | ||||
Fair value of assets | 53 | 563 | ||
Recurring | Level 3 | Equity Securities | ||||
Assets: | ||||
Fair value of assets | 0 | |||
Recurring | Level 3 | Nonhedge derivatives | ||||
Assets: | ||||
Fair value of assets | $ 0 | $ 0 |
FAIR VALUE OF FINANCIAL INSTR_5
FAIR VALUE OF FINANCIAL INSTRUMENTS - Schedule of Changes in Level 3 (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | $ 692,864 | $ 1,046,569 |
Transfer from level 2 | 0 | 0 |
Purchases | 29,603 | 40,016 |
Sales | (4,261) | (329,062) |
Paydowns/maturities | (57,489) | (10,512) |
Amortization of premium/discount | (1,326) | (2,013) |
Unrealized gain/(loss) | (6,638) | 6,829 |
Realized gain/(loss) on sale | (103) | 579 |
Ending balance | $ 652,650 | $ 752,406 |
FAIR VALUE OF FINANCIAL INSTR_6
FAIR VALUE OF FINANCIAL INSTRUMENTS - Schedule of Quantitative Information (Details) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022USD ($) | Dec. 31, 2021USD ($) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Carrying Value | $ 662,780 | $ 703,280 |
CMBS | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Carrying Value | 648,045 | 686,292 |
CMBS interest-only | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Carrying Value | 14,252 | 15,886 |
GNMA interest-only | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Carrying Value | 450 | 559 |
Agency securities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Carrying Value | 53 | 563 |
Level 3 | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Carrying Value | $ 652,650 | $ 692,864 |
Level 3 | Valuation Technique, Discounted Cash Flow | CMBS | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Duration | 0 years | 0 years |
Level 3 | Valuation Technique, Discounted Cash Flow | CMBS | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Duration | 1 year 9 months 18 days | 1 year 11 months 4 days |
Level 3 | Valuation Technique, Discounted Cash Flow | CMBS | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Duration | 4 years 9 months 10 days | 8 years 4 months 20 days |
Level 3 | Valuation Technique, Discounted Cash Flow | CMBS interest-only | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Duration | 0 years | 10 days |
Level 3 | Valuation Technique, Discounted Cash Flow | CMBS interest-only | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Duration | 1 year 8 months 1 day | 1 year 9 months 21 days |
Level 3 | Valuation Technique, Discounted Cash Flow | CMBS interest-only | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Duration | 2 years 4 months 28 days | 2 years 6 months 29 days |
Level 3 | Valuation Technique, Discounted Cash Flow | GNMA interest-only | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Duration | 0 years | 0 years |
Level 3 | Valuation Technique, Discounted Cash Flow | GNMA interest-only | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Duration | 2 years 8 months 4 days | 2 years 8 months 19 days |
Level 3 | Valuation Technique, Discounted Cash Flow | GNMA interest-only | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Duration | 5 years 2 months 19 days | 5 years 6 months 21 days |
Level 3 | Valuation Technique, Discounted Cash Flow | Agency securities | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Duration | 0 years | 0 years |
Level 3 | Valuation Technique, Discounted Cash Flow | Agency securities | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Duration | 0 years | 5 months 1 day |
Level 3 | Valuation Technique, Discounted Cash Flow | Agency securities | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Duration | 0 years | 5 months 19 days |
Level 3 | Valuation Technique, Discounted Cash Flow | Yield | CMBS | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 0 | 0.0077 |
Level 3 | Valuation Technique, Discounted Cash Flow | Yield | CMBS | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 0.0183 | 0.0151 |
Level 3 | Valuation Technique, Discounted Cash Flow | Yield | CMBS | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 0.1793 | 0.0528 |
Level 3 | Valuation Technique, Discounted Cash Flow | Yield | CMBS interest-only | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | (0.1665) | 0 |
Level 3 | Valuation Technique, Discounted Cash Flow | Yield | CMBS interest-only | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 0.0449 | 0.057 |
Level 3 | Valuation Technique, Discounted Cash Flow | Yield | CMBS interest-only | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 0.1117 | 0.0934 |
Level 3 | Valuation Technique, Discounted Cash Flow | Yield | GNMA interest-only | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 0 | 0 |
Level 3 | Valuation Technique, Discounted Cash Flow | Yield | GNMA interest-only | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 0.0529 | 0.0497 |
Level 3 | Valuation Technique, Discounted Cash Flow | Yield | GNMA interest-only | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 0.1000 | 0.1000 |
Level 3 | Valuation Technique, Discounted Cash Flow | Yield | Agency securities | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 0.0278 | 0.0144 |
Level 3 | Valuation Technique, Discounted Cash Flow | Yield | Agency securities | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 0.0278 | 0.0158 |
Level 3 | Valuation Technique, Discounted Cash Flow | Yield | Agency securities | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 0.0278 | 0.0278 |
Level 3 | Valuation Technique, Discounted Cash Flow | Prepayment speed | CMBS interest-only | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 100 | 100 |
Level 3 | Valuation Technique, Discounted Cash Flow | Prepayment speed | CMBS interest-only | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 100 | 100 |
Level 3 | Valuation Technique, Discounted Cash Flow | Prepayment speed | CMBS interest-only | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 100 | 100 |
Level 3 | Valuation Technique, Discounted Cash Flow | Prepayment speed | GNMA interest-only | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 5 | 5 |
Level 3 | Valuation Technique, Discounted Cash Flow | Prepayment speed | GNMA interest-only | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 17.42 | 17.41 |
Level 3 | Valuation Technique, Discounted Cash Flow | Prepayment speed | GNMA interest-only | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 35 | 35 |
Recurring | Level 3 | CMBS | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Carrying Value | $ 638,403 | $ 676,398 |
Recurring | Level 3 | CMBS interest-only | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Carrying Value | 13,743 | 15,344 |
Recurring | Level 3 | GNMA interest-only | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Carrying Value | 451 | 559 |
Recurring | Level 3 | Agency securities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Carrying Value | $ 53 | $ 563 |
INCOME TAXES - Additional Infor
INCOME TAXES - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Income Tax Contingency [Line Items] | |||
Income tax expense (benefit) | $ (0.9) | $ (2) | |
Deferred income tax expense (benefit) | (0.4) | $ 1.2 | |
Deferred tax asset related to capital losses | 5.8 | ||
Deferred tax assets related to interest expense limitation | 1.3 | ||
Other assets | |||
Income Tax Contingency [Line Items] | |||
Deferred tax liabilities | $ (1.9) | $ (2.3) |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Unfunded Loan Commitments | |||
Operating lease liability | $ 0.7 | ||
Operating lease, right-of-use asset | $ 0.8 | ||
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Other liabilities | ||
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other assets | ||
Tenant reimbursements | $ (1.6) | $ (1.1) | |
Provision for loan losses | |||
Unfunded Loan Commitments | |||
Unfunded commitments of mortgage loan receivables held for investment | $ 409.7 | $ 390.1 | |
Length of additional mortgage loan financing | 3 years | ||
Unfunded commitments of mortgage loan receivables held for investment, additional funds | 52.00% |
SEGMENT REPORTING - Additional
SEGMENT REPORTING - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2022segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
SEGMENT REPORTING - Schedule of
SEGMENT REPORTING - Schedule of Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | ||
Income Statement [Abstract] | ||||
Interest income | $ 56,205 | $ 39,287 | ||
Interest expense | (47,035) | (45,973) | ||
Net interest income | 9,170 | (6,686) | ||
(Provision for) release of loan loss reserves | (874) | 4,251 | ||
Net interest income (expense) after provision for (release of) loan losses | 8,296 | (2,435) | ||
Real estate operating income | 26,354 | 24,159 | ||
Sale of loans, net | (949) | 0 | ||
Realized gain (loss) on securities | (96) | 579 | ||
Unrealized gain (loss) on equity securities | 14 | 0 | ||
Unrealized gain (loss) on Agency interest-only securities | 3 | (20) | ||
Realized gain (loss) on sale of real estate, net | 29,154 | 0 | ||
Fee and other income | 7,194 | 3,284 | ||
Net result from derivative transactions | 3,135 | 4,771 | ||
Earnings (loss) from investment in unconsolidated joint ventures | 434 | 436 | ||
Gain (loss) on extinguishment of debt | 0 | |||
Total other income (loss) | 65,243 | 33,209 | ||
Compensation and employee benefits | (29,864) | (9,533) | ||
Operating expenses | (5,508) | (4,241) | ||
Real estate operating expenses | (8,992) | (6,211) | ||
Fee expense | (1,988) | (1,599) | ||
Depreciation and amortization | (9,342) | (9,536) | ||
Total costs and expenses | (55,694) | (31,120) | ||
Income tax (expense) benefit | 1,309 | 778 | ||
Net income (loss) | 19,154 | 432 | ||
Total assets | [1] | 5,974,197 | $ 5,851,252 | |
Investment in unconsolidated joint ventures | [1] | 5,243 | 23,154 | |
Investment in FHLB stock | 11,800 | 11,800 | ||
Professional fees | 3,000 | 2,000 | ||
Information technology expenses | 900 | 900 | ||
Operating Segment | ||||
Income Statement [Abstract] | ||||
Investment in unconsolidated joint ventures | 5,200 | 23,200 | ||
Operating Segment | Loans | ||||
Income Statement [Abstract] | ||||
Interest income | 53,120 | 35,892 | ||
Interest expense | (14,283) | (14,075) | ||
Net interest income | 38,837 | 21,817 | ||
(Provision for) release of loan loss reserves | (874) | 4,251 | ||
Net interest income (expense) after provision for (release of) loan losses | 37,963 | 26,068 | ||
Real estate operating income | 0 | 0 | ||
Sale of loans, net | (949) | |||
Realized gain (loss) on securities | 0 | 0 | ||
Unrealized gain (loss) on equity securities | 0 | |||
Unrealized gain (loss) on Agency interest-only securities | 0 | 0 | ||
Realized gain (loss) on sale of real estate, net | 0 | |||
Fee and other income | 3,377 | 2,969 | ||
Net result from derivative transactions | 2,337 | 3,043 | ||
Earnings (loss) from investment in unconsolidated joint ventures | 0 | 0 | ||
Gain (loss) on extinguishment of debt | 0 | |||
Total other income (loss) | 4,765 | 6,012 | ||
Compensation and employee benefits | 0 | 0 | ||
Operating expenses | 17 | 9 | ||
Real estate operating expenses | 0 | 0 | ||
Fee expense | (799) | (1,426) | ||
Depreciation and amortization | 0 | 0 | ||
Total costs and expenses | (782) | (1,417) | ||
Income tax (expense) benefit | 0 | 0 | ||
Net income (loss) | 41,946 | 30,663 | ||
Total assets | 3,879,040 | 3,521,986 | ||
Operating Segment | Securities | ||||
Income Statement [Abstract] | ||||
Interest income | 3,065 | 3,234 | ||
Interest expense | (452) | (832) | ||
Net interest income | 2,613 | 2,402 | ||
(Provision for) release of loan loss reserves | 0 | |||
Net interest income (expense) after provision for (release of) loan losses | 2,613 | 2,402 | ||
Real estate operating income | 0 | 0 | ||
Sale of loans, net | 0 | |||
Realized gain (loss) on securities | (96) | 579 | ||
Unrealized gain (loss) on equity securities | 14 | |||
Unrealized gain (loss) on Agency interest-only securities | 3 | (20) | ||
Realized gain (loss) on sale of real estate, net | 0 | |||
Fee and other income | 15 | 0 | ||
Net result from derivative transactions | 804 | 1,728 | ||
Earnings (loss) from investment in unconsolidated joint ventures | 0 | 0 | ||
Gain (loss) on extinguishment of debt | 0 | |||
Total other income (loss) | 740 | 2,287 | ||
Compensation and employee benefits | 0 | 0 | ||
Operating expenses | 0 | 0 | ||
Real estate operating expenses | 0 | 0 | ||
Fee expense | (48) | (50) | ||
Depreciation and amortization | 0 | 0 | ||
Total costs and expenses | (48) | (50) | ||
Income tax (expense) benefit | 0 | 0 | ||
Net income (loss) | 3,305 | 4,639 | ||
Total assets | 662,942 | 703,280 | ||
Operating Segment | Real Estate | ||||
Income Statement [Abstract] | ||||
Interest income | 0 | 0 | ||
Interest expense | (11,479) | (8,785) | ||
Net interest income | (11,479) | (8,785) | ||
(Provision for) release of loan loss reserves | 0 | 0 | ||
Net interest income (expense) after provision for (release of) loan losses | (11,479) | (8,785) | ||
Real estate operating income | 26,354 | 24,159 | ||
Sale of loans, net | 0 | |||
Realized gain (loss) on securities | 0 | 0 | ||
Unrealized gain (loss) on equity securities | 0 | |||
Unrealized gain (loss) on Agency interest-only securities | 0 | 0 | ||
Realized gain (loss) on sale of real estate, net | 29,154 | |||
Fee and other income | 3,707 | 32 | ||
Net result from derivative transactions | (6) | 0 | ||
Earnings (loss) from investment in unconsolidated joint ventures | 434 | 436 | ||
Gain (loss) on extinguishment of debt | 0 | |||
Total other income (loss) | 59,643 | 24,627 | ||
Compensation and employee benefits | 0 | 0 | ||
Operating expenses | 0 | 0 | ||
Real estate operating expenses | (8,992) | (6,211) | ||
Fee expense | (166) | (123) | ||
Depreciation and amortization | (9,334) | (9,511) | ||
Total costs and expenses | (18,492) | (15,845) | ||
Income tax (expense) benefit | 0 | 0 | ||
Net income (loss) | 29,672 | (3) | ||
Total assets | 853,511 | 914,027 | ||
Corporate/Other | ||||
Income Statement [Abstract] | ||||
Interest income | 20 | 161 | ||
Interest expense | (20,821) | (22,281) | ||
Net interest income | (20,801) | (22,120) | ||
(Provision for) release of loan loss reserves | 0 | 0 | ||
Net interest income (expense) after provision for (release of) loan losses | (20,801) | (22,120) | ||
Real estate operating income | 0 | 0 | ||
Sale of loans, net | 0 | |||
Realized gain (loss) on securities | 0 | 0 | ||
Unrealized gain (loss) on equity securities | 0 | |||
Unrealized gain (loss) on Agency interest-only securities | 0 | 0 | ||
Realized gain (loss) on sale of real estate, net | 0 | |||
Fee and other income | 95 | 283 | ||
Net result from derivative transactions | 0 | 0 | ||
Earnings (loss) from investment in unconsolidated joint ventures | 0 | 0 | ||
Gain (loss) on extinguishment of debt | 0 | |||
Total other income (loss) | 95 | 283 | ||
Compensation and employee benefits | (29,864) | (9,533) | ||
Operating expenses | (5,525) | (4,250) | ||
Real estate operating expenses | 0 | 0 | ||
Fee expense | (975) | 0 | ||
Depreciation and amortization | (8) | (25) | ||
Total costs and expenses | (36,372) | (13,808) | ||
Income tax (expense) benefit | 1,309 | 778 | ||
Net income (loss) | (55,769) | $ (34,867) | ||
Total assets | 578,704 | 711,959 | ||
Corporate/Other | Senior Unsecured Notes | ||||
Income Statement [Abstract] | ||||
Senior notes | $ 1,600,000 | $ 1,600,000 | ||
[1] | Includes amounts relating to consolidated variable interest entities. Refer to Note 2 and Note 10. |