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Debt and Preferred Equity Investments | 6 Months Ended
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Jun. 30, 2018
Investments, Debt and Equity Securities [Abstract] |
Debt and Preferred Equity Investments | Debt and Preferred Equity Investments Below is a summary of the activity relating to our debt and preferred equity investments for the six months ended June 30, 2018 and the twelve months ended December 31, 2017 (in thousands):
| June 30, 2018 |  | December 31, 2017
Balance at beginning of period (1) | $ | 2,114,041 |  |  | $ | 1,640,412 |
Debt investment originations/accretion (2) | 611,686 |  |  | 1,142,591 |
Preferred equity investment originations/accretion (2) | 4,177 |  |  | 144,456 |
Redemptions/sales/syndications/amortization (3) | (561,389 | ) |  | (813,418 | )
Balance at end of period (1) | $ | 2,168,515 |  |  | $ | 2,114,041 |
(1) | Net of unamortized fees, discounts, and premiums.
(2) | Accretion includes amortization of fees and discounts and paid-in-kind investment income.
(3) | Certain participations in debt investments that were sold or syndicated did not meet the conditions for sale accounting are included in other assets and other liabilities on the consolidated balance sheets.
Debt Investments As of June 30, 2018 and December 31, 2017, we held the following debt investments with an aggregate weighted average current yield of 9.06% at June 30, 2018 (in thousands):
Loan Type |  | June 30, 2018 Future Funding Obligations |  | June 30, 2018 Senior Financing |  | June 30, 2018 Carrying Value (1) |  | December 31, 2017 Carrying Value (1) |  | Maturity Date (2)
Fixed Rate Investments: |  |  |  |  |  |  |  |  |  |
Mortgage Loan(3)(4) |  | $ | — |  |  | $ | — |  |  | $ | 26,394 |  |  | $ | 26,366 |  |  | February 2019
Mortgage Loan |  | — |  |  | — |  |  | 164 |  |  | 239 |  |  | August 2019
Mezzanine Loan(5a) |  | — |  |  | 1,160,000 |  |  | 208,506 |  |  | 204,005 |  |  | March 2020
Mezzanine Loan |  | — |  |  | 15,000 |  |  | 3,500 |  |  | 3,500 |  |  | September 2021
Mezzanine Loan |  | — |  |  | 147,000 |  |  | 24,922 |  |  | 24,913 |  |  | April 2022
Mezzanine Loan |  | — |  |  | 280,000 |  |  | 35,564 |  |  | 34,600 |  |  | August 2022
Mezzanine Loan(6) |  | — |  |  | 86,201 |  |  | 12,702 |  |  | 12,699 |  |  | November 2023
Mezzanine Loan(5b) |  | — |  |  | 115,000 |  |  | 12,936 |  |  | 12,932 |  |  | June 2024
Mezzanine Loan |  | — |  |  | 95,000 |  |  | 30,000 |  |  | 30,000 |  |  | January 2025
Mezzanine Loan |  | — |  |  | 340,000 |  |  | 15,000 |  |  | 15,000 |  |  | November 2026
Mezzanine Loan |  | — |  |  | 1,657,500 |  |  | 55,250 |  |  | 55,250 |  |  | June 2027
Mortgage/Jr. Mortgage Loan(7) |  | — |  |  | — |  |  | — |  |  | 250,464 |  |  |
Total fixed rate |  | $ | — |  |  | $ | 3,895,701 |  |  | $ | 424,938 |  |  | $ | 669,968 |  |  |
Floating Rate Investments: |  |  |  |  |  |  |  |  |  |
Mezzanine Loan |  | — |  |  | 20,523 |  |  | 10,970 |  |  | 10,934 |  |  | August 2018
Mortgage/Mezzanine Loan(8) |  | — |  |  | — |  |  | 19,990 |  |  | 19,940 |  |  | August 2018
Mezzanine Loan(9) |  | — |  |  | 65,000 |  |  | 14,992 |  |  | 14,955 |  |  | August 2018
Mortgage/Mezzanine Loan |  | — |  |  | — |  |  | 16,992 |  |  | 16,969 |  |  | September 2018
Mezzanine Loan(10) |  | — |  |  | 37,500 |  |  | 14,961 |  |  | 14,855 |  |  | September 2018
Mezzanine Loan |  | 2,325 |  |  | 45,025 |  |  | 35,072 |  |  | 34,879 |  |  | October 2018
Mezzanine Loan(5c) |  | — |  |  | 150,000 |  |  | 15,347 |  |  | 15,381 |  |  | December 2018
Mezzanine Loan(5d) |  | — |  |  | — |  |  | 14,836 |  |  | 14,869 |  |  | December 2018
Mezzanine Loan |  | — |  |  | 33,000 |  |  | 26,967 |  |  | 26,927 |  |  | December 2018
Mezzanine Loan |  | — |  |  | 175,000 |  |  | 59,873 |  |  | 59,723 |  |  | December 2018
Mezzanine Loan(11) |  | — |  |  | 45,000 |  |  | 12,211 |  |  | 12,174 |  |  | January 2019
Mezzanine Loan |  | 4,000 |  |  | 29,291 |  |  | 9,980 |  |  | 8,550 |  |  | January 2019
Mezzanine Loan(5e)(12) |  | 795 |  |  | — |  |  | 15,150 |  |  | 15,148 |  |  | March 2019
Mezzanine Loan |  | — |  |  | 38,000 |  |  | 21,964 |  |  | 21,939 |  |  | March 2019
Mezzanine Loan(13) |  | — |  |  | 40,000 |  |  | 19,958 |  |  | 19,982 |  |  | April 2019
Mezzanine Loan(13) |  | — |  |  | 61,130 |  |  | 21,718 |  |  | 34,947 |  |  | April 2019
Mezzanine Loan |  | — |  |  | 175,000 |  |  | 37,355 |  |  | 37,250 |  |  | April 2019
Mezzanine Loan |  | — |  |  | 265,000 |  |  | 24,895 |  |  | 24,830 |  |  | April 2019
Mortgage/Jr. Mortgage Participation Loan |  | 20,065 |  |  | 220,572 |  |  | 79,551 |  |  | 71,832 |  |  | August 2019
Mezzanine Loan(10) |  | 2,034 |  |  | 189,829 |  |  | 37,884 |  |  | 37,851 |  |  | September 2019
Mortgage/Mezzanine Loan |  | 20,560 |  |  | — |  |  | 168,369 |  |  | 143,919 |  |  | September 2019
Mezzanine Loan |  | — |  |  | 350,000 |  |  | 34,810 |  |  | 34,737 |  |  | October 2019
Mortgage/Mezzanine Loan |  | 1,306 |  |  | — |  |  | 46,168 |  |  | — |  |  | December 2019
Mortgage/Mezzanine Loan |  | 17,627 |  |  | — |  |  | 51,981 |  |  | 43,845 |  |  | January 2020
Mezzanine Loan |  | 1,123 |  |  | 571,863 |  |  | 78,462 |  |  | 75,834 |  |  | January 2020
Mortgage Loan |  | 14,786 |  |  | — |  |  | 84,783 |  |  | — |  |  | February 2020
Mezzanine Loan |  | 3,878 |  |  | 306,711 |  |  | 50,669 |  |  | — |  |  | March 2020
Mortgage/Mezzanine Loan |  | 45,019 |  |  | — |  |  | 333,290 |  |  | — |  |  | April 2020
Mezzanine Loan |  | 6,386 |  |  | 35,912 |  |  | 11,829 |  |  | 11,259 |  |  | July 2020
Loan Type |  | June 30, 2018 Future Funding Obligations |  | June 30, 2018 Senior Financing |  | June 30, 2018 Carrying Value (1) |  | December 31, 2017 Carrying Value (1) |  | Maturity Date (2)
Mezzanine Loan |  | 44,088 |  |  | 340,558 |  |  | 83,065 |  |  | 75,428 |  |  | November 2020
Mortgage and Mezzanine Loan |  | 38,200 |  |  | — |  |  | 93,498 |  |  | 88,989 |  |  | December 2020
Mortgage and Mezzanine Loan |  | — |  |  | — |  |  | 35,207 |  |  | 35,152 |  |  | December 2020
Jr. Mortgage Participation/Mezzanine Loan |  | — |  |  | 60,000 |  |  | 15,648 |  |  | 15,635 |  |  | July 2021
Mortgage/Mezzanine Loan (14) |  | — |  |  | — |  |  | — |  |  | 162,553 |  |  |
Mortgage/Mezzanine Loan (14) |  | — |  |  | — |  |  | — |  |  | 74,755 |  |  |
Mortgage/Mezzanine Loan (15) |  | — |  |  | — |  |  | — |  |  | 23,609 |  |  |
Total floating rate |  | $ | 222,192 |  |  | $ | 3,254,914 |  |  | $ | 1,598,445 |  |  | $ | 1,299,650 |  |  |
Total |  | $ | 222,192 |  |  | $ | 7,150,615 |  |  | $ | 2,023,383 |  |  | $ | 1,969,618 |  |  |
(1) | Carrying value is net of discounts, premiums, original issue discounts and deferred origination fees.
(2) | Represents contractual maturity, excluding any unexercised extension options.
(3) | In September 2014, we acquired a $26.4 million mortgage loan at a $0.2 million discount and a $5.7 million junior mortgage participation at a $5.7 million discount. The junior mortgage participation has been a nonperforming loan since acquisition, is currently on non-accrual status and has no carrying value.
(4) | This loan was repaid in August 2018.
(5) | Carrying value is net of the following amounts that were sold or syndicated, which are included in other assets and other liabilities on the consolidated balance sheets as a result of the transfers not meeting the conditions for sale accounting: (a) $1.3 million, (b) $12.0 million, (c) $14.6 million, (d) $14.1 million, and (e) $5.1 million.
(6) | The loan's June interest payment was outstanding at June 30, 2018 and was subsequently received in July 2018. The loan was evaluated in accordance with our loan review procedures and the Company concluded that the fair value of the collateral exceeded the carrying amount of the loan.
(7) | These loans were purchased at par in April and May 2017 and were in maturity default at the time of acquisition. At the time the loans were purchased, the Company expected to collect all contractually required payments, including interest. In August 2017, the Company determined that it was probable that the loans would not be repaid in full and therefore, the loans were put on non-accrual status. No impairment was recorded as the Company believed that the fair value of the property exceeded the carrying amount of the loans. In May 2018, the Company was the successful bidder at the foreclosure of the asset, at which time the loans were credited to our equity investment in the property.
(8) | This loan was extended in August 2018.
(9) | This loan was extended in July 2018.
(10) | This loan was repaid in July 2018.
(11) | In July 2018, the Company accepted an assignment of the property in-lieu of repayment of the loan, and marked the assets received and liabilities assumed to fair value, which exceeded the carrying value of the loan.
(12) | This loan was extended in March 2018.
(13) | This loan was extended in April 2018.
(14) | This loan was repaid in February 2018.
(15) | This loan was sold in May 2018.
Preferred Equity Investments As of June 30, 2018 and December 31, 2017, we held the following preferred equity investments with an aggregate weighted average current yield of 5.73% at June 30, 2018 (in thousands):
Type |  | June 30, 2018 Future Funding Obligations |  | June 30, 2018 Senior Financing |  | June 30, 2018 Carrying Value (1) |  | December 31, 2017 Carrying Value (1) |  | Maturity Date (2)
Preferred Equity |  | $ | — |  |  | $ | 272,000 |  |  | $ | 145,132 |  |  | $ | 144,423 |  |  | April 2021
Total |  | $ | — |  |  | $ | 272,000 |  |  | $ | 145,132 |  |  | $ | 144,423 |  |  |
(1) | Carrying value is net of deferred origination fees.
(2) | Represents contractual maturity, excluding any unexercised extension options.
At June 30, 2018, all debt and preferred equity investments were performing in accordance with the terms of the relevant investments, with the exception of a junior mortgage participation acquired in September 2014, which was acquired for zero and has a carrying value of zero, as discussed in subnote 3 of the Debt Investments table above, and a mezzanine loan for which the June 2018 interest payment was outstanding as of June 30, 2018 and was subsequently received in July 2018, as discussed in subnote 5 of the Debt Investments table above. At December 31, 2017, all debt and preferred equity investments were performing in accordance with the terms of the relevant investments, with the exception of our investment in 2 Herald Square which was purchased in maturity default in May 2017 and April 2017, respectively, for which we subsequently were the successful bidder for the leasehold interest at the foreclosure of the asset as discussed in Note 3, "Property Acquisitions," and a junior mortgage participation acquired in September 2014, which was acquired for zero and has a carrying value of zero, as discussed in subnote 3 of the Debt Investments table above. We have determined that we have one portfolio segment of financing receivables at June 30, 2018 and December 31, 2017, comprising commercial real estate which is primarily recorded in debt and preferred equity investments. Included in other assets is an additional amount of financing receivables totaling $89.6 million and $65.5 million at June 30, 2018 and December 31, 2017, respectively. No financing receivables were 90 days past due at June 30, 2018.

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