Commercial Mortgage and Subordinate Loans, Net (Tables)

3 Months Ended

Mar. 31, 2018

Mortgage Loans on Real Estate [Abstract]

The Company’s loan portfolio was comprised of the following at March 31, 2018 and December 31, 2017 ($ in thousands):



Loan Type	March 31, 2018		December 31, 2017
Commercial mortgage loans, net	$	3,029,240	$	2,653,826
Subordinate loans, net	1,038,254		1,025,932
Total loans, net	$	4,067,494	$	3,679,758

Activity relating to our loan investment portfolio was as follows ($ in thousands):



	Principal Balance			Deferred Fees/Other Items ⁽¹⁾			Provision for Loan Loss ⁽²⁾			Carrying Value
December 31, 2017	$	3,706,169		$	(9,430	)	$	(16,981	)	$	3,679,758
New loan fundings	488,638			—			—			488,638
Add-on loan fundings	18,393			—			—			18,393
Loan repayments	(137,947		)	—			—			(137,947		)
Unrealized gain (loss) on foreign currency translation	13,555			(113		)	—			13,442
Deferred fees and other items ⁽¹⁾	—			(11,561		)	—			(11,561		)
PIK interest, amortization of fees and other items ⁽¹⁾	10,564			6,207			—			16,771
March 31, 2018	$	4,099,372		$	(14,897	)	$	(16,981	)	$	4,067,494

———————

(1) Other items primarily consist of purchase discounts or premiums, exit fees and deferred origination expenses.

(2) In addition to the $17.0 million provision for loan loss, the Company recorded an impairment of $3.0 million against an investment previously recorded under other assets on the Company's consolidated balance sheet.

Schedule of Overall Statistics for the Loan Portfolio

The following table details overall statistics for our loan portfolio ($ in thousands):



	March 31, 2018			December 31, 2017
Number of loans	63			59
Principal balance	$	4,099,372		$	3,706,169
Carrying value	$	4,067,494		$	3,679,758
Unfunded loan commitments⁽¹⁾	$	852,508		$	435,627
Weighted-average cash coupon ⁽²⁾	8.6		%	8.4		%

———————


(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, based on applicable benchmark rates as of the specified dates.

Schedule of Mortgage Loans on Real Estate

The table below details the property type of the properties securing the loans in our portfolio ($ in thousands):



	March 31, 2018		December 31, 2017
Property Type	Carrying Value	% of Portfolio	Carrying Value	% of Portfolio
Predevelopment	$710,992	17.5%	$654,736	17.8%
Residential - for sale	704,020	17.3%	442,177	12.0%
Hotel	654,631	16.1%	645,056	17.6%
Office	584,990	14.4%	513,830	14.0%
Residential Rental	467,605	11.5%	465,057	12.6%
Mixed Use	356,079	8.7%	354,640	9.6%
Retail Center	199,463	4.9%	198,913	5.4%
Healthcare	158,292	3.9%	173,870	4.7%
Other	154,084	3.8%	154,141	4.2%
Industrial	77,338	1.9%	77,338	2.1%
	$4,067,494	100.0%	$3,679,758	100.0%

The table below details the geographic distribution of the properties securing the loans in our portfolio ($ in thousands):



	March 31, 2018		December 31, 2017
Geographic Location	Carrying Value	% of Portfolio	Carrying Value	% of Portfolio
Manhattan, NY	$1,209,678	29.7%	$1,173,833	31.9%
Brooklyn, NY	358,425	8.8%	357,611	9.7%
Northeast	107,671	2.7%	100,536	2.7%
Midwest	737,780	18.1%	683,380	18.6%
Southeast	447,450	11.0%	531,582	14.4%
West	270,170	6.6%	227,024	6.2%
Mid Atlantic	182,320	4.5%	191,976	5.2%
Southwest	33,384	0.8%	33,615	0.9%
United Kingdom	645,338	15.9%	303,488	8.3%
Other International	75,278	1.9%	76,713	2.1%
Total	$4,067,494	100.0%	$3,679,758	100.0%

Carrying Value of Loan Portfolio Based on Internal Risk Ratings



	March 31, 2018					December 31, 2017
Risk Rating	Number of Loans	Carrying Value		% of Loan Portfolio		Number of Loans	Carrying Value		% of Loan Portfolio
1	—	$	—	—	%	—	$	—	—	%
2	6	395,212		10	%	5	399,326		10	%
3	54	3,431,086		84	%	51	3,034,358		83	%
4	1	168,677		4	%	1	168,208		5	%
5	2	72,519		2	%	2	77,866		2	%
	63	$	4,067,494	100	%	59	$	3,679,758	100	%