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Loans and Investments (Tables)

12 Months Ended

Dec. 31, 2022

Summary 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, 2022		Total		Count	Pay Rate (1)		Maturity	LTV Ratio (2)		LTV Ratio (3)
Bridge loans (4)	$	14,096,054	98	%	692	8.17	%	19.8	0	%	76	%
Mezzanine loans		213,499	1	%	44	8.13	%	63.1	42	%	77	%
Preferred equity investments		110,725	1	%	8	7.63	%	39.2	46	%	79	%
Other loans (5)		35,845	<1	%	3	8.76	%	32.8	0	%	58	%
		14,456,123	100	%	747	8.17	%	20.6	1	%	76	%
Allowance for credit losses		(132,559)
Unearned revenue		(68,890)
Loans and investments, net	$	14,254,674


	December 31, 2021
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

(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)	At December 31, 2022 and 2021, bridge loans included 241 and 120, respectively, of SFR loans with a total gross loan commitment of $1.57 billion and $804.6 million, respectively, of which $927.4 million and $408.2 million, respectively, was funded.

(5)	At December 31, 2022 and 2021, other loans included 3 and 2 variable rate SFR permanent loans, respectively.

Schedule 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 at December 31, 2022 is as follows ($ in thousands):


																Wtd. Avg.		Wtd. Avg.
	UPB by Origination Year															First Dollar		Last Dollar
Asset Class / Risk Rating	2022		2021		2020		2019		2018		Prior		Total			LTV Ratio		LTV Ratio
Multifamily:
Pass	$	468,655	$	744,231	$	10,135	$	—	$	—	$	20,300	$	1,243,321
Pass/Watch		3,163,624		3,385,114		523,057		335,573		41,650		—		7,449,018
Special Mention		1,193,665		2,843,508		34,575		7,285		—		7,594		4,086,627
Substandard		—		255,779		26,700		22,975		32,500		—		337,954
Total Multifamily	$	4,825,944	$	7,228,632	$	594,467	$	365,833	$	74,150	$	27,894	$	13,116,920		1	%	77	%
Single-Family Rental:												Percentage of portfolio		91	%
Pass	$	18,113	$	34,871	$	3,118	$	—	$	—	$	—	$	56,102
Pass/Watch		428,000		272,356		99,615		20,965		—		—		820,936
Special Mention		18,344		37,978		29,858		—		—		—		86,180
Total Single-Family Rental	$	464,457	$	345,205	$	132,591	$	20,965	$	—	$	—	$	963,218		0	%	64	%
Land:												Percentage of portfolio		7	%
Special Mention	$	—	$	—	$	8,100	$	—	$	—	$	—	$	8,100
Substandard		—		—		—		—		—		127,928		127,928
Total Land	$	—	$	—	$	8,100	$	—	$	—	$	127,928	$	136,028		0	%	97	%
Office:												Percentage of portfolio		1	%
Pass/Watch	$	—	$	—	$	35,410	$	—	$	—	$	—	$	35,410
Special Mention		—		—		—		—		44,625		—		44,625
Total Office	$	—	$	—	$	35,410	$	—	$	44,625	$	—	$	80,035		0	%	88	%
Healthcare:												Percentage of portfolio		1	%
Pass/Watch	$	—	$	—	$	—	$	51,069	$	—	$	—	$	51,069
Special Mention		—		—		—		14,558		—		—		14,558
Total Healthcare	$	—	$	—	$	—	$	65,627	$	—	$	—	$	65,627		0	%	70	%
Hotel:												Percentage of portfolio		<1	%
Pass	$	—	$	—	$	—	$	40,850	$	—	$	—	$	40,850
Total Hotel	$	—	$	—	$	—	$	40,850	$	—	$	—	$	40,850		0	%	70	%
Retail:												Percentage of portfolio		<1	%
Pass	$	—	$	—	$	—	$	4,000	$	—	$	—	$	4,000
Substandard		—		—		—		—		18,600		3,445		22,045
Total Retail	$	—	$	—	$	—	$	4,000	$	18,600	$	3,445	$	26,045		12	%	71	%
Student Housing:												Percentage of portfolio		< 1	%
Pass/Watch	$	—	$	25,700	$	—	$	—	$	—	$	—	$	25,700
Total Student Housing	$	—	$	25,700	$	—	$	—	$	—	$	—	$	25,700		0	%	69	%
Other:												Percentage of portfolio		< 1	%
Doubtful	$	—	$	—	$	—	$	—	$	—	$	1,700	$	1,700
Total Other	$	—	$	—	$	—	$	—	$	—	$	1,700	$	1,700		63	%	63	%
												Percentage of portfolio		< 1	%
Grand Total	$	5,290,401	$	7,599,537	$	770,568	$	497,275	$	137,375	$	160,967	$	14,456,123		1	%	76	%

Schedule of the changes in the allowance for credit losses

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


	Year Ended December 31, 2022
	Land		Multifamily		Office		Retail		Student Housing		Healthcare		Hotel		Other		Total
Allowance for credit losses:
Beginning balance	$	77,970	$	18,707	$	8,073	$	5,819	$	636	$	8	$	8	$	2,020	$	113,241
Provision for credit losses (net of recoveries)		98		19,254		89		—		(598)		8		6		461		19,318
Ending balance	$	78,068	$	37,961	$	8,162	$	5,819	$	38	$	16	$	14	$	2,481	$	132,559


	Year Ended December 31, 2021
Allowance for credit losses:
Beginning balance	$	78,150	$	36,468	$	1,846	$	13,861	$	4,078	$	3,880	$	7,759	$	2,287	$	148,329
Provision for credit losses (net of recoveries)		(180)		(17,761)		6,227		(42)		(3,442)		(1,099)		(7,751)		(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		64		29		112		17,294
Provision for credit losses (net of recoveries)		10,204		20,146		59		13,526		4,010		3,816		7,730		475		59,966
Ending balance	$	78,150	$	36,468	$	1,846	$	13,861	$	4,078	$	3,880	$	7,759	$	2,287	$	148,329

Schedule of our specific loans considered impaired by asset class


	December 31, 2022
							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		17,563		5,817		14	%		79	%
Commercial		1,700		1,700		1,700		63	%		63	%
Total	$	157,960	$	147,131	$	85,386		3	%		96	%


	December 31, 2021
Land	$	134,215	$	127,868	$	77,869	0	%	99	%
Retail		22,045		17,291		5,817	14	%	77	%
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	%	95	%

(1)	Represents the UPB of seven and eight impaired loans (less unearned revenue and other holdbacks and adjustments) by asset class at December 31, 2022 and 2021, respectively.

Schedule 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, 2022						December 31, 2021
			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
Multifamily	$	2,605	$	—	$	2,605	$	—	$	—	$	—
Retail		3,445		—		3,445		920		—		920
Commercial		1,700		—		1,700		1,700		—		1,700
Student Housing		—		—		—		21,500		—		21,500
Total	$	7,750	$	—	$	7,750	$	24,120	$	—	$	24,120