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Loans and Investments (Tables)

3 Months Ended

Mar. 31, 2023

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
	March 31, 2023		Total		Count	Pay Rate (1)		Maturity	LTV Ratio (2)		LTV Ratio (3)
Bridge loans (4)	$	13,298,939	97	%	659	8.62	%	18.3	0	%	76	%
Mezzanine loans		222,094	2	%	46	8.15	%	60.7	44	%	80	%
Preferred equity investments		89,725	1	%	7	6.56	%	45.3	47	%	84	%
Other loans (5)		32,966	<1	%	3	9.23	%	29.5	0	%	57	%
		13,643,724	100	%	715	8.60	%	19.2	1	%	76	%
Allowance for credit losses		(153,077)
Unearned revenue		(59,662)
Loans and investments, net	$	13,430,985


	December 31, 2022
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

(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 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 March 31, 2023 and December 31, 2022, bridge loans included 254 and 241, respectively, of SFR loans with a total gross loan commitment of $1.63 billion and $1.57 billion, respectively, of which $982.0 million and $927.4 million, respectively, was funded.

(5)	At both March 31, 2023 and December 31, 2022, other loans included 3 variable rate SFR permanent loans.

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 March 31, 2023 is as follows ($ in thousands):


																Wtd. Avg.		Wtd. Avg.
	UPB by Origination Year															First Dollar		Last Dollar
Asset Class / Risk Rating	2023		2022		2021		2020		2019		Prior		Total			LTV Ratio		LTV Ratio
Multifamily:
Pass	$	22,360	$	549,835	$	268,328	$	3,155	$	—	$	20,300	$	863,978
Pass/Watch		160,465		2,781,244		3,236,800		303,109		203,354		22,050		6,707,022
Special Mention		—		1,322,873		2,884,543		51,175		51,785		27,194		4,337,570
Substandard		—		97,218		259,302		—		10,565		32,500		399,585
Total Multifamily	$	182,825	$	4,751,170	$	6,648,973	$	357,439	$	265,704	$	102,044	$	12,308,155		1	%	77	%

Single-Family Rental:									Percentage of portfolio					91	%
Pass	$	—	$	—	$	22,928	$	3,113	$	—	$	—	$	26,041
Pass/Watch		33,188		449,188		293,140		107,147		20,965		—		903,628
Special Mention		—		20,710		27,474		37,139		—		—		85,323
Total Single-Family Rental	$	33,188	$	469,898	$	343,542	$	147,399	$	20,965	$	—	$	1,014,992		0	%	63	%

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	%	98	%

Office:									Percentage of portfolio					1	%
Pass/Watch	$	—	$	—	$	—	$	35,410	$	—	$	—	$	35,410
Substandard		—		—		—		—		—		44,625		44,625
Total Office	$	—	$	—	$	—	$	35,410	$	—	$	44,625	$	80,035		0	%	99	%

Healthcare:									Percentage of portfolio					1	%
Pass/Watch	$	—	$	—	$	—	$	—	$	51,069	$	—	$	51,069
Total Healthcare	$	—	$	—	$	—	$	—	$	51,069	$	—	$	51,069		0	%	69	%

Retail:									Percentage of portfolio					< 1	%
Pass	$	—	$	—	$	—	$	—	$	4,000	$	—	$	4,000
Special Mention		—		—		—		—		—		3,445		3,445
Substandard		—		—		—		—		—		18,600		18,600
Total Retail	$	—	$	—	$	—	$	—	$	4,000	$	22,045	$	26,045		11	%	71	%

Student Housing:									Percentage of portfolio					< 1	%
Pass/Watch	$	—	$	—	$	25,700	$	—	$	—	$	—	$	25,700
Total Student Housing	$	—	$	—	$	25,700	$	—	$	—	$	—	$	25,700		0	%	67	%

Other:									Percentage of portfolio					< 1	%
Doubtful	$	—	$	—	$	—	$	—	$	—	$	1,700	$	1,700
Total Other	$	—	$	—	$	—	$	—	$	—	$	1,700	$	1,700		63	%	63	%

									Percentage of portfolio					< 1	%
Grand Total	$	216,013	$	5,221,068	$	7,018,215	$	548,348	$	341,738	$	298,342	$	13,643,724		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):


	Three Months Ended March 31, 2023
	Land		Multifamily		Office		Retail		Commercial		Single-Family Rental		Other		Total
Allowance for credit losses:
Beginning balance	$	78,068	$	37,961	$	8,162	$	5,819	$	1,700	$	781	$	68	$	132,559
Provision for credit losses (net of recoveries)		18		20,387		(56)		—		—		192		(23)		20,518
Ending balance	$	78,086	$	58,348	$	8,106	$	5,819	$	1,700	$	973	$	45	$	153,077


	Three Months Ended March 31, 2022
Allowance for credit losses:
Beginning balance	$	77,970	$	18,707	$	8,073	$	5,819	$	1,700	$	320	$	652	$	113,241
Provision for credit losses (net of recoveries)		(30)		3,377		12		—		—		101		(319)		3,141
Ending balance	$	77,940	$	22,084	$	8,085	$	5,819	$	1,700	$	421	$	333	$	116,382

Schedule of our specific loans considered impaired by asset class


	March 31, 2023
							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	%
Office		44,625		44,625		7,951	0	%	100	%
Retail		22,045		17,563		5,817	13	%	78	%
Commercial		1,700		1,700		1,700	63	%	63	%
Total	$	202,585	$	191,756	$	93,337	2	%	96	%


	December 31, 2022
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	%

(1)	Represents the UPB of eight and seven impaired loans (less unearned revenue and other holdbacks and adjustments) by asset class at March 31, 2023 and December 31, 2022, 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):


	March 31, 2023						December 31, 2022
			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	$	2,605	$	—	$	2,605
Retail		3,445		—		3,445		3,445		—		3,445
Commercial		1,700		—		1,700		1,700		—		1,700
Total	$	7,750	$	—	$	7,750	$	7,750	$	—	$	7,750