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Loans and Investments (Tables)

12 Months Ended

Dec. 31, 2021

Schedule of Structured Business loan and investment portfolio

Our Structured Business loan and investment portfolio consists of ($ in thousands):


								Wtd. Avg.
								Remaining	Wtd. Avg.		Wtd. Avg.
			Percent of		Loan	Wtd. Avg.		Months to	First Dollar		Last Dollar
	December 31, 2021		Total		Count	Pay Rate (1)		Maturity	LTV Ratio (2)		LTV Ratio (3)
Bridge loans (4)	$	11,750,710	97	%	528	4.19	%	23.8	0	%	76	%
Mezzanine loans		223,378	2	%	39	7.32	%	56.3	34	%	84	%
Preferred equity investments		155,513	1	%	11	5.57	%	38.0	58	%	87	%
Other loans (5)		29,394	<1	%	2	4.63	%	48.1	0	%	67	%
		12,158,995	100	%	580	4.26	%	24.6	1	%	76	%
Allowance for credit losses		(113,241)
Unearned revenue		(64,706)
Loans and investments, net	$	11,981,048


	December 31, 2020
Bridge loans (4)	$	5,022,509	92	%	263	5.09	%	16.2	0	%	76	%
Mezzanine loans		159,242	3	%	29	7.40	%	45.0	32	%	82	%
Preferred equity investments		224,928	4	%	14	7.07	%	49.8	64	%	89	%
Other loans (5)		68,403	1	%	22	4.95	%	74.8	0	%	69	%
		5,475,082	100	%	328	5.23	%	19.2	4	%	77	%
Allowance for credit losses		(148,329)
Unearned revenue		(40,885)
Loans and investments, net	$	5,285,868

(1)

“Weighted Average Pay Rate” is a weighted average, based on the UPB of each loan in our portfolio, of the interest rate required to be paid monthly as stated in the individual loan agreements. Certain loans and investments that require an 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)	As of December 31, 2021 and 2020, bridge loans included 120 and 38, respectively, of SFR loans with a total gross loan commitment amount of $804.6 million and $309.2 million, respectively, of which $408.2 million and $88.1 million, respectively, was funded.

(5)	As of December 31, 2021 and 2020, other loans included 2 variable rate SFR permanent loans and 22 SFR permanent loans, respectively.

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

A summary of the loan portfolio’s internal risk ratings and LTV ratios by asset class as of December 31, 2021 is as follows ($ in thousands):


																Wtd. Avg.		Wtd. Avg.
	UPB by Origination Year															First Dollar		Last Dollar
Asset Class / Risk Rating	2021		2020		2019		2018		2017		Prior		Total			LTV Ratio		LTV Ration
Multifamily:
Pass	$	6,025,731	$	562,885	$	176,281	$	6,305	$	20,300	$	214	$	6,791,716
Pass/Watch		2,120,458		587,820		194,698		120,950		32,500		28,800		3,085,226
Special Mention		270,813		321,031		452,980		42,500		—		350		1,087,674
Substandard		—		18,827		43,575		15,533		31,110		8,250		117,295
Total Multifamily	$	8,417,002	$	1,490,563	$	867,534	$	185,288	$	83,910	$	37,614	$	11,081,911		1	%	76	%
Single-Family Rental:												Percentage of portfolio		91	%
Pass	$	69,992	$	18,339	$	—	$	—	$	—	$	—	$	88,331
Pass/Watch		257,602		24,927		—		—		—		—		282,529
Special Mention		2,743		48,481		15,556		—		—		—		66,780
Total Single-Family Rental	$	330,337	$	91,747	$	15,556	$	—	$	—	$	—	$	437,640		0	%	65	%
Land:												Percentage of portfolio		4	%
Special Mention	$	—	$	8,100	$	—	$	—	$	—	$	—	$	8,100
Substandard		—		71,018		19,524		—		19,975		127,928		238,445
Total Land	$	—	$	79,118	$	19,524	$	—	$	19,975	$	127,928	$	246,545		0	%	96	%
Healthcare:												Percentage of portfolio		2	%
Pass/Watch	$	—	$	—	$	14,750	$	—	$	—	$	—	$	14,750
Special Mention		—		—		51,069		41,500		—		—		92,569
Substandard		—		—		—		—		39,650		—		39,650
Total Healthcare	$	—	$	—	$	65,819	$	41,500	$	39,650	$	—	$	146,969		0	%	74	%
Office:												Percentage of portfolio		1	%
Special Mention	$	—	$	35,410	$	—	$	43,199	$	—	$	1,980	$	80,589
Total Office	$	—	$	35,410	$	—	$	43,199	$	—	$	1,980	$	80,589		0	%	85	%
Student Housing:												Percentage of portfolio		1	%
Pass	$	25,700	$	—	$	—	$	—	$	—	$	—	$	25,700
Special Mention		—		—		31,100		—		—		—		31,100
Substandard		—		21,500		—		—		—		—		21,500
Total Student Housing	$	25,700	$	21,500	$	31,100	$	—	$	—	$	—	$	78,300		21	%	73	%
Hotel:												Percentage of portfolio		1	%
Pass/Watch	$	—	$	4,716	$	—	$	—	$	—	$	—	$	4,716
Special Mention		—		—		41,000		—		—		—		41,000
Total Hotel	$	—	$	4,716	$	41,000	$	—	$	—	$	—	$	45,716		0	%	66	%
Retail:												Percentage of portfolio		<1	%
Pass	$	—	$	—	$	4,000	$	—	$	—	$	—	$	4,000
Special Mention		—		—		—		18,600		—		—		18,600
Substandard		—		—		—		—		—		3,445		3,445
Total Retail	$	—	$	—	$	4,000	$	18,600	$	—	$	3,445	$	26,045		12	%	33	%
Other:												Percentage of portfolio		< 1	%
Pass/Watch	$	—	$	—	$	—	$	—	$	13,580	$	—	$	13,580
Doubtful		—		—		—		—		—		1,700		1,700
Total Other	$	—	$	—	$	—	$	—	$	13,580	$	1,700	$	15,280		7	%	51	%
												Percentage of portfolio		< 1	%

Grand Total	$	8,773,039	$	1,723,054	$	1,044,533	$	288,587	$	157,115	$	172,667	$	12,158,995		1	%	76	%

Summary of the changes in the allowance for credit losses for our loan portfolio

A summary of the changes in the allowance for credit losses is as follows (in thousands):


	Year Ended December 31, 2021
	Land		Multifamily		Office		Retail		Student Housing		Hotel		Healthcare		Other		Total
Allowance for credit losses:
Beginning balance	$	78,150	$	36,468	$	1,846	$	13,861	$	4,078	$	7,759	$	3,880	$	2,287	$	148,329
Provision for credit losses (net of recoveries)		(180)		(17,761)		6,227		(42)		(3,442)		(7,751)		(1,099)		(267)		(24,315)
Charge-offs		—		—		—		(8,000)		—		—		(2,773)		—		(10,773)
Ending balance	$	77,970	$	18,707	$	8,073	$	5,819	$	636	$	8	$	8	$	2,020	$	113,241


	Year Ended December 31, 2020
Allowance for credit losses:
Beginning balance, prior to adoption of CECL	$	67,869	$	—	$	1,500	$	—	$	—	$	—	$	—	$	1,700	$	71,069
Impact of adopting CECL - January 1, 2020		77		16,322		287		335		68		29		64		112		17,294
Provision for credit losses (net of recoveries)		10,204		20,146		59		13,526		4,010		7,730		3,816		475		59,966
Ending balance	$	78,150	$	36,468	$	1,846	$	13,861	$	4,078	$	7,759	$	3,880	$	2,287	$	148,329

	Year Ended December 31, 2019
Allowance for credit losses	$	67,869	$	—	$	1,500	$	—	$	—	$	—	$	—	$	1,700	$	71,069

Summary of our loans considered impaired by asset class

All of our structured loans and investments are secured by real estate assets or by interests in real estate assets, and, as such, the measurement of credit losses may be based on the difference between the fair value of the underlying collateral and the carrying value of the assets as of the period end. A summary of our specific loans considered impaired by asset class is as follows (in thousands):


	December 31, 2021
							Wtd. Avg. First			Wtd. Avg. Last
			Carrying		Allowance for		Dollar LTV			Dollar LTV
Asset Class	UPB (1)		Value		Credit Losses		Ratio			Ratio
Land	$	134,215	$	127,868	$	77,869		0	%		99	%
Retail		22,045		17,291		5,817		14	%		33	%
Office		1,980		1,980		1,500		0	%		51	%
Commercial		1,700		1,700		1,700		63	%		63	%
Total	$	159,940	$	148,839	$	86,886		3	%		89	%


	December 31, 2020
Land	$	134,215	$	127,829	$	77,869	0	%	99	%
Hotel		110,000		89,613		7,500	0	%	94	%
Retail		30,079		28,957		13,851	10	%	75	%
Healthcare		4,625		4,673		3,845	0	%	83	%
Office		2,166		2,166		1,500	0	%	71	%
Commercial		1,700		1,700		1,700	63	%	63	%
Total	$	282,785	$	254,938	$	106,265	1	%	94	%

(1)	Represents the UPB of eight and ten impaired loans (less unearned revenue and other holdbacks and adjustments) by asset class at December 31, 2021 and 2020, respectively.

Summary of our non-performing loans by asset class

A summary of our non-performing loans by asset class is as follows (in thousands):


	December 31, 2021						December 31, 2020
			Less Than		Greater Than				Less Than		Greater Than
			90 Days		90 Days				90 Days		90 Days
	UPB		Past Due		Past Due		UPB		Past Due		Past Due
Student Housing	$	21,500	$	—	$	21,500	$	36,500	$	—	$	36,500
Commercial		1,700		—		1,700		1,700		—		1,700
Retail		920		—		920		920		—		920
Multifamily		—		—		—		17,700		—		17,700
Office		—		—		—		880		—		880
Healthcare		—		—		—		4,625		—		4,625
Total	$	24,120	$	—	$	24,120	$	62,325	$	—	$	62,325