XML 48 R25.htm IDEA: XBRL DOCUMENT
v3.25.0.1

Debt and Preferred Equity Investments | 12 Months Ended
--- | ---
Dec. 31, 2024
Investments, Debt and Equity Securities [Abstract] |
Debt and Preferred Equity Investments | Debt and Preferred Equity Investments Below is a summary of the activity in our debt and preferred equity investments for the years ended December 31, 2024 and 2023 (in thousands):
| December 31, 2024 |  | December 31, 2023
Balance at beginning of year (1) | $ | 346,745 |  |  | $ | 623,280 |
Debt investment originations/fundings/accretion (2) | 12,890 |  |  | 72,160 |
Preferred equity investment originations/accretion (2) (3) | 8,720 |  |  | 8,142 |
Redemptions/sales/syndications/equity ownership/amortization | (64,629) |  |  | (349,947) |
Net change in loan loss reserves | — |  |  | (6,890) |
Balance at end of period (1) (4) | $ | 303,726 |  |  | $ | 346,745 |
(1)Net of unamortized fees, discounts, and premiums. (2)Accretion includes amortization of fees and discounts and paid-in-kind investment income. (3)Excludes a $214.7 million preferred equity investment that is included in Investment in unconsolidated joint ventures in our consolidated balance sheet. See Note 6, "Investments in Unconsolidated Joint Ventures." (4)Includes two investments with a total carrying value of $53.5 million that are included in the Company's alternative strategy portfolio. Below is a summary of our debt and preferred equity investments as of December 31, 2024 (dollars in thousands):
| Floating Rate |  | Fixed Rate |  | Total Carrying Value |  | Senior Financing | Maturity(2)
Type | Carrying Value | Face Value | Interest Rate (1) |  | Carrying Value | Face Value | Interest Rate |  |
Mezzanine Debt | $ | 117,006 |  | $ | 117,160 |  | S + 5.06 - 11.75% |  | $ | 50,000 |  | $ | 50,000 |  | 8.00 - 8.40% |  | $ | 167,006 |  | (3) | $ | 812,021 |  | 2025 - 2029
Preferred Equity (4) | — |  | — |  | — |  | 136,720 |  | 136,720 |  | 6.5% |  | 136,720 |  |  | 250,000 |  | 2027 |
Balance at end of period | $ | 117,006 |  | $ | 117,160 |  |  |  | $ | 186,720 |  | $ | 186,720 |  |  |  | $ | 303,726 |  |  | $ | 1,062,021 |  |
(1)Floating interest rates are presented with the stated spread over Term SOFR ("S"). (2)Excludes available extension options to the extent they have not been exercised as of the date of this filing. (3)Includes two investments with a total carrying value of $53.5 million that are included in the Company's alternative strategy portfolio. (4)Excludes a $214.7 million preferred equity investment that is included in Investment in unconsolidated joint ventures in our consolidated balance sheet. See Note 6, "Investments in Unconsolidated Joint Ventures." The following table is a roll forward of our total allowance for loan losses for the years ended December 31, 2024, 2023 and 2022 (in thousands):
| Year Ended December 31,
| 2024 |  | 2023 |  | 2022
Balance at beginning of year | $ | 13,520 |  |  | $ | 6,630 |  |  | $ | 6,630 |
Current period provision for loan loss | — |  |  | 6,890 |  |  | — |
Balance at end of period | $ | 13,520 |  | (1) | $ | 13,520 |  | (1) | $ | 6,630 |
(1)As of December 31, 2024, all financing receivables on non-accrual had an allowance for loan loss except for one debt investment with a carrying value of $53.5 million, which is included in the Company's alternative strategy portfolio. As of December 31, 2024, one investment, which is fully reserved, was not performing in accordance with its respective terms. As of December 31, 2023, two investments with a carrying value, net of reserves, of $49.8 million were not performing in accordance with their respective terms. This is further discussed in the Debt Investments and Preferred Equity Investments tables below. No other financing receivables were 90 days past due as of December 31, 2024 and December 31, 2023. The following table sets forth the carrying value of our debt and preferred equity investment portfolio by risk rating as of December 31, 2024 and 2023 (dollars in thousands):
Risk Rating |  | December 31, 2024 |  | December 31, 2023
1 - Low Risk Assets - Low probability of loss |  | $ | 156,720 |  |  | $ | 210,333 |
2 - Watch List Assets - Higher potential for loss (1) |  | 147,006 |  |  | 136,412 |
3 - High Risk Assets - Loss more likely than not |  | — |  |  | — |
|  | $ | 303,726 |  |  | $ | 346,745 |
(1)Includes two investments with a total carrying value of $53.5 million that are included in the Company's alternative strategy portfolio. The following table sets forth the carrying value of our debt and preferred equity investment portfolio by year of origination and risk rating as of December 31, 2024 (dollars in thousands):
|  | As of December 31,
Risk Rating |  | 2024(1) |  | 2023(1) |  | 2022(1) |  | Prior(1)(2) |  | Total
1 - Low Risk Assets - Low probability of loss |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 156,720 |  |  | $ | 156,720 |
2 - Watch List Assets - Higher potential for loss |  | — |  |  | — |  |  | — |  |  | 147,006 |  | (3) | 147,006 |
3 - High Risk Assets - Loss more likely than not |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
|  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 303,726 |  |  | $ | 303,726 |
(1)Year in which the investment was originated or acquired by us or in which a material modification occurred. (2)During the year ended December 31, 2023, we recognized a $6.9 million provision for loan loss related to an investment originated prior to 2021. (3)Includes two investments with a total carrying value of $53.5 million that are included in the Company's alternative strategy portfolio. We have determined that we have one portfolio segment of financing receivables as of December 31, 2024 and 2023 comprised of commercial real estate which is primarily recorded in debt and preferred equity investments. Included in Other assets is an additional amount of financing receivables representing loans to joint venture partners totaling $23.7 million and $8.8 million as of December 31, 2024 and 2023, respectively. The Company recorded no provisions for loan losses related to these financing receivables for the years ended December 31, 2024 and 2023, respectively. All of these loans have a risk rating of 2 and were performing in accordance with their respective terms. Debt Investments As of December 31, 2024 and 2023, we held the following debt investments with an aggregate weighted average current yield of 6.02% as of December 31, 2024 (dollars in thousands):
|  | December 31, 2024 |  | December 31, 2023 |  |
Loan Type |  | Future Funding Obligations |  | Senior Financing |  | Carrying Value (1) |  | Carrying Value (1) |  | Maturity Date (2)
Fixed Rate Investments: |  |  |  |  |  |  |  |  |  |
Mezzanine Loan (3) (4) (5) |  | $ | — |  |  | $ | 105,000 |  |  | $ | 13,366 |  |  | $ | 13,366 |  |  | January 2025
Mezzanine Loan (6) |  | — |  |  | 95,000 |  |  | 30,000 |  |  | 30,000 |  |  | January 2025
Mezzanine Loan |  | — |  |  | 85,000 |  |  | 20,000 |  |  | 20,000 |  |  | December 2029
Total fixed rate |  | $ | — |  |  | $ | 285,000 |  |  | $ | 63,366 |  |  | $ | 63,366 |  |  |
Floating Rate Investments: |  |  |  |  |  |  |  |  |  |
Mezzanine Loan |  | $ | — |  |  | $ | 54,000 |  |  | $ | 8,991 |  |  | $ | 8,243 |  |  | July 2025
Mezzanine Loan (5) (7) |  | — |  |  | 283,000 |  |  | 53,687 |  |  | 50,000 |  |  | December 2025
Mezzanine Loan |  | 4,603 |  |  | 190,021 |  |  | 54,482 |  |  | 48,323 |  |  | January 2026
Mezzanine Loan |  | — |  |  | — |  |  | — |  |  | 62,333 |  |  | May 2024
Total floating rate |  | $ | 4,603 |  |  | $ | 527,021 |  |  | $ | 117,160 |  |  | $ | 168,899 |  |  |
Allowance for loan loss |  | $ | — |  |  | $ | — |  |  | $ | (13,520) |  |  | $ | (13,520) |  |  |
Total |  | $ | 4,603 |  |  | $ | 812,021 |  |  | $ | 167,006 |  |  | $ | 218,745 |  |  |
(1)Carrying value is net of discounts, premiums, original issue discounts and deferred origination fees. (2)Represents contractual maturity, excluding any extension options to the extent they have not been exercised as of the date of this filing. (3)Carrying value is net of a $12.0 million participation that was sold and did not meet the conditions for sale accounting, which is included in Other assets and Other liabilities on the consolidated balance sheets. (4)This loan went into default and was put on non-accrual in June 2020 and remains on non-accrual as of December 31, 2024. No investment income has been recognized subsequent to it being put on non-accrual. In the first quarter of 2023, the Company fully reserved the balance of the investment. Additionally, we determined the borrower entity to be a VIE in which we are not the primary beneficiary. (5)Included in the Company's alternative strategy portfolio. (6)The Company is in discussions with the borrower with respect to the loan. (7)This loan was put on non-accrual in January 2023 and remains on non-accrual as of December 31, 2024. No investment income has been recognized since it was put on non-accrual. In December 2024, the maturity date of the loan was extended to December 2025. Additionally, we determined the borrower entity to be a VIE in which we are not the primary beneficiary. Preferred Equity Investments As of December 31, 2024 and 2023, we held the following preferred equity investments with an aggregate weighted average current yield of 6.55% as of December 31, 2024 (dollars in thousands), excluding a $214.7 million preferred equity investment that is included in Investment in unconsolidated joint ventures in our consolidated balance sheet:
|  | December 31, 2024 |  | December 31, 2023 |  |
Type |  | Future Funding Obligations |  | Senior Financing |  | Carrying Value (1) |  | Carrying Value (1) |  | Mandatory Redemption (2)
Preferred Equity |  | $ | — |  |  | $ | 250,000 |  |  | $ | 136,720 |  |  | $ | 128,000 |  |  | February 2027
Total |  | $ | — |  |  | $ | 250,000 |  |  | $ | 136,720 |  |  | $ | 128,000 |  |  |
(1)Carrying value is net of deferred origination fees. (2)Represents contractual redemption, excluding any unexercised extension options.

X
- References No definition available. + Details
Name: | us-gaap_InvestmentsDebtAndEquitySecuritiesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for investments in certain debt and equity securities. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 940 -SubTopic 320 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/940-320/tableOfContent Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Name Regulation S-K (SK) -Number 229 -Section 1403 -Paragraph b -Publisher SEC Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 320 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/320/tableOfContent Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 320 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 10 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481800/320-10-50-10 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6B -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6B Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6B -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6B Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 942 -SubTopic 320 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/942-320/tableOfContent + Details
Name: | us-gaap_InvestmentsInDebtAndMarketableEquitySecuritiesAndCertainTradingAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration