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Loans and Investments (Tables)

6 Months Ended

Jun. 30, 2023

Loans and Investments

Summary of Structured Business Loan and Investment Portfolio

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

			June 30, 2023						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 (4)			$	13,168,302					98		%				652						8.78		%				16.4						0		%				76		%
Mezzanine loans			223,087						1		%				45						8.35		%				57.9						44		%				80		%
Preferred equity investments			89,725						1		%				7						6.56		%				44.7						48		%				87		%
Other loans (5)			10,493						<1%						2						9.60		%				18.3						0		%				62		%
			13,491,607						100		%				706						8.76		%				17.2						1		%				76		%
Allowance for credit losses			(169,054)
Unearned revenue			(51,194)
Loans and investments, net			$	13,271,359
			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 June 30, 2023 and December 31, 2022, bridge loans included 275 and 241, respectively, of SFR loans with a total gross loan commitment of $1.73 billion and $1.57 billion, respectively, of which $1.02 billion and $927.4 million, respectively, was funded.

(5)At June 30, 2023 and December 31, 2022, other loans included 2 and 3 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 June 30, 2023 is as follows ($ in thousands):

			UPB by Origination Year																																				Total						Wtd. Avg. First Dollar LTV Ratio						Wtd. Avg. Last Dollar LTV Ratio
Asset Class / Risk Rating			2023						2022						2021						2020						2019						Prior
Multifamily:
Pass			$	208,351					$	191,850					$	249,714					$	11,000					$	—					$	20,300					$	681,215
Pass/Watch			493,020						2,685,299						2,741,640						121,870						93,235						7,194						6,142,258
Special Mention			—						1,624,051						2,835,865						196,825						161,885						21,700						4,840,326
Substandard			—						171,821						237,737						24,100						—						52,450						486,108
Doubtful			—						—						2,605						—						9,765						—						12,370
Total Multifamily			$	701,371					$	4,673,021					$	6,067,561					$	353,795					$	264,885					$	101,644					$	12,162,277					1		%				77		%
Single-Family Rental:			Percentage of portfolio																																				90		%
Pass			$	—					$	—					$	1,330					$	—					$	—					$	—					$	1,330
Pass/Watch			95,623						451,728						305,484						68,625						20,965						—						942,425
Special Mention			—						22,398						38,035						30,265						—						—						90,698
Total Single-Family Rental			$	95,623					$	474,126					$	344,849					$	98,890					$	20,965					$	—					$	1,034,453					0		%				63		%
Land:			Percentage of portfolio																																				8		%
Pass/Watch			$	—					$	—					$	—					$	4,600					$	—					$	—					$	4,600
Special Mention			—						—						—						3,500						—						—						3,500
Substandard			—						—						—						—						—						127,928						127,928
Total Land			$	—					$	—					$	—					$	8,100					$	—					$	127,928					$	136,028					0		%				98		%
Office:			Percentage of portfolio																																				1		%
Special Mention			$	—					$	—					$	—					$	35,410					$	—					$	—					$	35,410
Substandard			—						—						—						—						—						44,625						44,625
Total Office			$	—					$	—					$	—					$	35,410					$	—					$	44,625					$	80,035					0		%				91		%
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/Watch			$	—					$	—					$	—					$	—					$	4,000					$	—					$	4,000
Special Mention			—						—						—						—						—						3,445						3,445
Substandard			—						—						—						—						—						18,600						18,600
Total Retail			$	—					$	—					$	—					$	—					$	4,000					$	22,045					$	26,045					11		%				72		%
Other:			Percentage of portfolio																																				< 1%
Doubtful			$	—					$	—					$	—					$	—					$	—					$	1,700					$	1,700
Total Other			$	—					$	—					$	—					$	—					$	—					$	1,700					$	1,700					63		%				63		%
			Percentage of portfolio																																				< 1%
Grand Total			$	796,994					$	5,147,147					$	6,412,410					$	496,195					$	340,919					$	297,942					$	13,491,607					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 June 30, 2023
			Land						Multifamily						Office						Retail						Commercial						Single-Family Rental						Other						Total
Allowance for credit losses:
Beginning balance			$	78,086					$	58,348					$	8,106					$	5,819					$	1,700					$	973					$	45					$	153,077
Provision for credit losses (net of recoveries)			(184)						15,947						140						—						—						104						(30)						15,977
Ending balance			$	77,902					$	74,295					$	8,246					$	5,819					$	1,700					$	1,077					$	15					$	169,054
			Three Months Ended June 30, 2022
Allowance for credit losses:
Beginning balance			$	77,940					$	22,084					$	8,085					$	5,819					$	1,700					$	421					$	333					$	116,382
Provision for credit losses (net of recoveries)			(22)						5,874						(1,054)						—						—						304						(153)						4,949
Ending balance			$	77,918					$	27,958					$	7,031					$	5,819					$	1,700					$	725					$	180					$	121,331
			Six Months Ended June 30, 2023
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)			(166)						36,334						84						—						—						296						(53)						36,495
Ending balance			$	77,902					$	74,295					$	8,246					$	5,819					$	1,700					$	1,077					$	15					$	169,054
			Six Months Ended June 30, 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)			(52)						9,251						(1,042)						—						—						405						(472)						8,090
Ending balance			$	77,918					$	27,958					$	7,031					$	5,819					$	1,700					$	725					$	180					$	121,331

Summary of Specific Loans Considered Impaired by Asset Class

A summary of our specific loans considered impaired by asset class is as follows ($ in thousands):

						June 30, 2023
Asset Class						UPB (1)						Carrying Value						Allowance for Credit Losses						Wtd. Avg. First Dollar LTV Ratio						Wtd. Avg. Last Dollar LTV Ratio
Land						$	134,215					$	127,868					$	77,869					0		%				99		%
Office						44,625						44,625						7,951						0		%				100		%
Multifamily						36,377						36,202						5,000						0		%				100		%
Retail						22,045						17,777						5,817						13		%				79		%
Commercial						1,700						1,700						1,700						63		%				63		%
Total						$	238,962					$	228,172					$	98,337					2		%				97		%
						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 nine and seven impaired loans (less unearned revenue and other holdbacks and adjustments) by asset class at June 30, 2023 and December 31, 2022, respectively.

Schedule of Non-Performing Loans by Asset Class

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

			June 30, 2023																		December 31, 2022
			UPB						Less Than 90 Days Past Due						Greater Than 90 Days Past Due						UPB						Less Than 90 Days Past Due						Greater Than 90 Days Past Due
Multifamily			$	119,291					$	116,686					$	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			$	124,436					$	116,686					$	7,750					$	7,750					$	—					$	7,750

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