XML 23 R13.htm IDEA: XBRL DOCUMENT
v3.7.0.1

Loans, Held for Investment | 3 Months Ended
--- | ---
Mar. 31, 2017
Mortgage Loans on Real Estate [Abstract] |
Loans, Held for Investment | Loans, Held for Investment The Company’s loans receivable are comprised of the following:
Loan Type |  | March 31, 2017 |  | December 31, 2016
Commercial mortgage loans, held for investment, net |  | $ | 1,955,816 |  |  | $ | 1,641,856 |
Subordinate loans, held for investment, net |  | 1,195,570 |  |  | 1,051,236 |
Total loans, held for investment, net |  | $ | 3,151,386 |  |  | $ | 2,693,092 |
Activity relating to our loans, held for investment portfolio was as follows:
|  | Principal Balance |  | Deferred Fees/Other Items (1) |  | Provision for Loan Loss |  | Carrying Value
December 31, 2016 |  | 2,720,344 |  |  | (12,252 | ) |  | (15,000 | ) |  | 2,693,092 |
Loan fundings |  | 492,282 |  |  | — |  |  | — |  |  | 492,282 |
Loan repayments |  | (44,075 | ) |  | — |  |  | — |  |  | (44,075 | )
Unrealized gain (loss) on foreign currency translation |  | 2,808 |  |  | — |  |  | — |  |  | 2,808 |
Deferred fees and other items (1) |  | — |  |  | (6,294 | ) |  | — |  |  | (6,294 | )
Amortization of fees and other items (1) |  | 7,854 |  |  | 5,718 |  |  | — |  |  | 13,573 |
March 31, 2017 |  | 3,179,213 |  |  | (12,828 | ) |  | (15,000 | ) |  | 3,151,386 |
(1) | Other items primarily consist of purchase discounts or premiums, exit fees, and deferred origination expenses.
The following table details overall statistics for our loans receivable portfolio:
|  | March 31, 2017 |  | December 31, 2016
Number of loans |  | 51 |  |  | 45 |
Principal balance |  | $ | 3,179,213 |  |  | $ | 2,720,344 |
Carrying value |  | $ | 3,151,386 |  |  | $ | 2,693,092 |
Unfunded loan commitments (1) |  | $ | 121,470 |  |  | $ | 170,365 |
Weighted-average cash coupon (2) |  | 8.82 | % |  | 8.88 | %
(1) | Unfunded loan commitments are primarily funded to finance property improvements or lease-related expenditures by the borrowers. These future commitments are funded over the term of each loan, subject in certain cases to an expiration date.
(2) | For floating rate loans, assumes one-month LIBOR of 0.98% and 0.77%, as of March 31, 2017 and December 31, 2016, respectively.
The tables below detail the property type and geographic distribution of the properties securing the loans in our portfolio:
| March 31, 2017 |  | December 31, 2016
Property Type |  | Carrying Value |  | % of Portfolio |  | Carrying Value |  | % of Portfolio
Hotel |  | $694,045 |  | 22.0% |  | $408,428 |  | 15.2%
Residential - for sale |  | 522,707 |  | 16.6% |  | 469,997 |  | 17.5%
Urban Retail Predevelopment |  | 498,830 |  | 15.8% |  | 491,187 |  | 18.2%
Office |  | 256,177 |  | 8.1% |  | 255,031 |  | 9.5%
Residential Rental |  | 270,912 |  | 8.6% |  | 309,243 |  | 11.5%
Mixed Use |  | 252,132 |  | 8.0% |  | 134,797 |  | 4.9%
Retail Center |  | 240,296 |  | 7.6% |  | 209,401 |  | 7.8%
Healthcare |  | 171,306 |  | 5.5% |  | 170,549 |  | 6.3%
Industrial |  | 156,941 |  | 5.0% |  | 156,809 |  | 5.8%
Other |  | 88,040 |  | 2.8% |  | 87,650 |  | 3.3%
|  | $3,151,386 |  | 100% |  | $2,693,092 |  | 100%
|  | March 31, 2017 |  | December 31, 2016
Geographic Location |  | Carrying Value |  | % of Portfolio |  | Carrying Value |  | % of Portfolio
New York City |  | $1,232,256 |  | 39.1% |  | $1,034,303 |  | 38.4%
Midwest |  | 505,769 |  | 16.0% |  | 405,992 |  | 15.1%
Southeast |  | 490,354 |  | 15.6% |  | 332,276 |  | 12.3%
International (U.K.) |  | 246,820 |  | 7.8% |  | 244,756 |  | 9.1%
West |  | 197,068 |  | 6.3% |  | 219,664 |  | 8.2%
Mid Atlantic |  | 261,076 |  | 8.3% |  | 263,717 |  | 9.8%
Southwest |  | 79,636 |  | 2.5% |  | 54,614 |  | 2%
Northeast |  | 138,407 |  | 4.4% |  | 137,770 |  | 5.1%
Total |  | $3,151,386 |  | 100% |  | $2,693,092 |  | 100%
The Company evaluates its loans for possible impairment on a quarterly basis. The Company regularly evaluates the extent and impact of any credit deterioration associated with the performance and/or value of the underlying collateral property as well as the financial and operating capability of the borrower/sponsor on a loan by loan basis. Specifically, a property’s operating results and any cash reserves are analyzed and used to assess (i) whether cash from operations are sufficient to cover the debt service requirements currently and into the future, (ii) the ability of the borrower to refinance the loan and/or (iii) the property’s liquidation value. The Company also evaluates the financial wherewithal of any loan guarantors as well as the borrower’s competency in managing and operating the properties. In addition, the Company considers the overall economic environment, real estate sector and geographic sub-market in which the borrower operates. Such loan loss analyses are completed and reviewed by asset management and finance personnel who utilize various data sources, including (i) periodic financial data such as debt service coverage ratio, property occupancy, tenant profile, rental rates, operating expenses, the borrower’s exit plan, and capitalization and discount rates, (ii) site inspections and (iii) current credit spreads and discussions with market participants. An allowance for loan loss is established when it is deemed probable that the Company will not be able to collect all amounts due according to the contractual terms of the loan. During 2016, the Company recorded a loan loss provision of $10,000 on a multifamily commercial mortgage loan and $5,000 on a multifamily subordinate loan secured by a multifamily property located in Williston, ND. The loan loss provision was based on the difference between fair value of the underlying collateral, and the carrying value of the loan (prior to the loan loss provision). Fair value of the collateral was determined using a discounted cash flow analysis. The significant unobservable inputs used in determining the collateral value are the terminal capitalization rate and discount rate which were 11% and 10%, respectively. As of March 31, 2017 and December 31, 2016, the aggregate loan loss provision was $10,000 and $5,000 for commercial mortgage loan and subordinate loan, respectively. The Company has ceased accruing payment in kind ("PIK") interest associated with the loan.

X
- References No definition available. + Details
Name: | us-gaap_MortgageLoansOnRealEstateAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for mortgage loans on real estate, this includes the supplemental information pertaining to each mortgage loan receivable that equals or exceeds three percent of the carrying amount of mortgages. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 948 -SubTopic 310 -Section S99 -Paragraph 1 -Subparagraph (SX 210.12-29) -URI http://asc.fasb.org/extlink&oid=6589523&loc=d3e617274-123014 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 10 -Section S99 -Paragraph 6 -Subparagraph (SX 210.5-04.(c) Schedule IV) -URI http://asc.fasb.org/extlink&oid=27047687&loc=d3e5864-122674 + Details
Name: | us-gaap_MortgageLoansOnRealEstateByLoanDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration