Loans and Investments (Tables)

9 Months Ended

Sep. 30, 2017

Schedule of composition of structured loan and investment portfolio

	September 30, 2017			Percent of Total		Loan Count	Wtd. Avg. Pay Rate (1)		Wtd. Avg. Remaining Months to Maturity	Wtd. Avg. First Dollar LTV Ratio (2)		Wtd. Avg. Last Dollar LTV Ratio (3)

Bridge loans	$	1,841,484,888		88	%	129	5.89	%	19.0	0	%	72	%
Preferred equity investments	155,306,620			7	%	11	6.92	%	68.3	62	%	88	%
Mezzanine loans	72,328,033			4	%	8	10.24	%	26.9	29	%	69	%
Junior participation loan (4)	25,256,582			1	%	1	—		—	100	%	100	%

	2,094,376,123			100	%	149	6.04	%	22.7	7	%	74	%

Allowance for loan losses	(83,255,922		)
Unearned revenue	(13,564,216		)

Loans and investments, net	$	1,997,555,985

	December 31, 2016

Bridge loans	$	1,602,658,179		90	%	120	5.59	%	16.4	0	%	73	%
Preferred equity investments	68,120,639			4	%	10	6.83	%	23.8	42	%	91	%
Mezzanine loans	57,124,566			3	%	12	9.09	%	17.9	36	%	75	%
Junior participation loans	62,256,582			3	%	2	4.50	%	4.0	83	%	84	%

	1,790,159,966			100	%	144	5.71	%	16.3	6	%	75	%

Allowance for loan losses	(83,711,575		)
Unearned revenue	(10,716,040		)

Loans and investments, net	$	1,695,732,351

(1)

“Weighted Average Pay Rate” is a weighted average, based on the unpaid principal balance (“UPB”) of each loan in our portfolio, of the interest rate that is required to be paid monthly as stated in the individual loan agreements. Certain loans and investments that require an additional rate of interest “Accrual Rate” to be paid at maturity are not included in the weighted average pay rate as shown in the table.

(2)

The “First Dollar Loan-to-Value (“LTV”) Ratio” is calculated by comparing the total of our senior most dollar and all senior lien positions within the capital stack to the fair value of the underlying collateral to determine the point at which we will absorb a total loss of our position.

(3)

The “Last Dollar LTV Ratio” is calculated by comparing the total of the carrying value of our loan and all senior lien positions within the capital stack to the fair value of the underlying collateral to determine the point at which we will initially absorb a loss.

(4)

This loan is currently past its maturity and is fully reserved.

Summary of the loan portfolio's weighted average internal risk ratings and LTV ratios by asset class

	September 30, 2017
Asset Class	Unpaid Principal Balance		Percentage of Portfolio		Wtd. Avg. Internal Risk Rating	Wtd. Avg. First Dollar LTV Ratio		Wtd. Avg. Last Dollar LTV Ratio

Multifamily	$	1,556,114,399	75	%	pass/watch	5	%	73	%
Land	140,054,798		7	%	substandard	0	%	88	%
Commercial	133,230,000		6	%	pass	1	%	71	%
Office	133,143,446		6	%	pass/watch	19	%	71	%
Hotel	90,725,147		4	%	special mention	39	%	83	%
Retail	36,483,333		2	%	pass/watch	8	%	66	%
Healthcare	4,625,000		<1	%	special mention	0	%	73	%

Total	$	2,094,376,123	100	%	pass/watch	7	%	74	%

	December 31, 2016

Multifamily	$	1,421,731,108	79	%	special mention	1	%	73	%
Land	137,255,369		8	%	substandard	2	%	92	%
Commercial	9,205,000		<1	%	special mention	12	%	69	%
Office	141,710,156		8	%	pass/watch	43	%	73	%
Hotel	70,750,000		4	%	special mention	30	%	74	%
Retail	3,958,333		<1	%	special mention	81	%	91	%
Healthcare	5,550,000		<1	%	special mention	0	%	63	%

Total	$	1,790,159,966	100	%	special mention	6	%	75	%

Summary of the changes in the allowance for loan losses

	Three Months Ended September 30,					Nine Months Ended September 30,
	2017		2016			2017			2016

Allowance at beginning of period	$	81,255,922	$	83,831,575		$	83,711,575		$	86,761,575
Provision for loan losses	2,000,000		—			2,000,000			59,005
Charge-offs	—		—			—			(2,959,005		)
Recoveries of reserves	—		(15,000		)	(2,455,653		)	(45,000		)

Allowance at end of period	$	83,255,922	$	83,816,575		$	83,255,922		$	83,816,575

Summary of the company's impaired loans by asset class

	September 30, 2017						Three Months Ended September 30, 2017				Nine Months Ended September 30, 2017
Asset Class	Unpaid Principal Balance		Carrying Value (1)		Allowance for Loan Losses		Average Recorded Investment (2)		Interest Income Recognized		Average Recorded Investment (2)		Interest Income Recognized

Land	$	131,085,948	$	125,325,106	$	53,883,478	$	131,085,948	$	—	$	131,085,948	$	—
Hotel	34,750,000		34,750,000		5,700,000		34,750,000		—		34,750,000		370,877
Office	27,549,082		22,764,944		21,972,444		27,551,332		27,728		27,555,832		79,065
Commercial	1,700,000		1,700,000		1,700,000		1,700,000		—		1,700,000		—
Multifamily	—		—		—		—		—		1,271,058		22,063

Total	$	195,085,030	$	184,540,050	$	83,255,922	$	195,087,280	$	27,728	$	196,362,838	$	472,005

	December 31, 2016						Three Months Ended September 30, 2016				Nine Months Ended September 30, 2016

Land	$	131,085,948	$	125,925,677	$	53,883,478	$	130,012,569	$	—	$	128,740,618	$	—
Hotel	34,750,000		34,496,296		3,700,000		34,750,000		291,542		34,750,000		857,459
Office	27,562,582		22,778,444		21,972,444		27,569,332		23,601		27,573,832		69,763
Commercial	1,700,000		1,700,000		1,700,000		1,700,000		—		1,700,000		—
Multifamily	2,542,115		2,450,618		2,455,653		2,654,615		22,937		5,004,615		134,142

Total	$	197,640,645	$	187,351,035	$	83,711,575	$	196,686,516	$	338,080	$	197,769,065	$	1,061,364

(1)

Represents the UPB of six and eight impaired loans (less unearned revenue and other holdbacks and adjustments) by asset class at September 30, 2017 and December 31, 2016, respectively.

(2)

Represents an average of the beginning and ending UPB of each asset class.

Summary of the company's non-performing loans by asset class

	September 30, 2017						December 31, 2016
Asset Class	Carrying Value		Less Than 90 Days Past Due		Greater Than 90 Days Past Due		Carrying Value		Less Than 90 Days Past Due		Greater Than 90 Days Past Due

Hotel	$	34,750,000	$	—	$	34,750,000	$	—	$	—	$	—
Office	20,472,444		—		20,472,444		20,472,444		—		20,472,444
Multifamily	2,601,528		—		2,601,528		680,653		—		680,653
Commercial	1,700,000		—		1,700,000		1,700,000		—		1,700,000
Retail	990,667		—		990,667		—		—		—

Total	$	60,514,639	$	—	$	60,514,639	$	22,853,097	$	—	$	22,853,097

Summary of loan modifications, refinancings and/or extensions by asset class that the entity considered to be troubled debt restructurings by asset class

Three Months Ended September 30, 2017								Nine Months Ended September 30, 2017
Asset Class	Number of Loans	Original Unpaid Principal Balance		Original Wtd. Avg. Rate of Interest	Modified Unpaid Principal Balance		Modified Wtd. Avg. Rate of Interest	Number of Loans	Original Unpaid Principal Balance		Original Wtd. Avg. Rate of Interest		Modified Unpaid Principal Balance		Modified Wtd. Avg. Rate of Interest

Hotel	—	$	—	—	$	—	—	1	$	34,750,000	4.01	%	$	34,750,000	4.01	%

Three Months Ended September 30, 2016										Nine Months Ended September 30, 2016

Multifamily	1	$	14,646,456	5.33	%	$	14,646,456	5.33	%	1	$	14,646,456	5.33	%	$	14,646,456	5.33	%
Office	1	2,315,000		4.03	%	2,315,000		4.03	%	1	2,315,000		4.03	%	2,315,000		4.03	%

	2	$	16,961,456	5.15	%	$	16,961,456	5.15	%	2	$	16,961,456	5.15	%	$	16,961,456	5.15	%