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Commercial Mortgage and Subordinate Loans, Net (Tables) | 9 Months Ended
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Sep. 30, 2018
Receivables [Abstract] |
Schedule of Loan Portfolio | Our loan portfolio was comprised of the following at September 30, 2018 and December 31, 2017 ($ in thousands):
Loan Type |  | September 30, 2018 |  | December 31, 2017
Commercial mortgage loans, net |  | $ | 3,723,550 |  |  | $ | 2,653,826 |
Subordinate loans, net |  | 1,104,496 |  |  | 1,025,932 |
Total loans, net |  | $ | 4,828,046 |  |  | $ | 3,679,758 |
Activity Related to Loan Investment Portfolio | Activity relating to our loan investment portfolio, for the nine months ended September 30, 2018, 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 |  | 1,590,123 |  |  | — |  |  | — |  |  | 1,590,123 |
Add-on loan fundings (3) |  | 175,053 |  |  | — |  |  | — |  |  | 175,053 |
Loan repayments |  | (601,041 | ) |  | — |  |  | — |  |  | (601,041 | )
Unrealized gain (loss) on foreign currency translation |  | (35,412 | ) |  | (21 | ) |  | — |  |  | (35,433 | )
Provision for loan loss (2) |  | — |  |  | — |  |  | (5,000 | ) |  | (5,000 | )
Deferred fees and other items (1) |  | — |  |  | (24,596 | ) |  | — |  |  | (24,596 | )
PIK interest, amortization of fees and other items (1) |  | 29,944 |  |  | 19,238 |  |  | — |  |  | 49,182 |
September 30, 2018 |  | $ | 4,864,836 |  |  | $ | (14,809 | ) |  | $ | (21,981 | ) |  | $ | 4,828,046 |
——————— (1) Other items primarily consist of purchase discounts or premiums, exit fees and deferred origination expenses. (2) In addition to the $22.0 million provision for loan loss, we recorded an impairment of $3.0 million against an investment previously recorded under other assets on our condensed consolidated balance sheet. (3) Represents fundings for loans closed prior to 2018.
Schedule of Overall Statistics for the Loan Portfolio | The following table details overall statistics for our loan portfolio at the dates indicated ($ in thousands):
|  | September 30, 2018 |  | December 31, 2017
Number of loans |  | 68 |  |  | 59 |
Principal balance |  | $ | 4,864,836 |  |  | $ | 3,706,169 |
Carrying value |  | $ | 4,828,046 |  |  | $ | 3,679,758 |
Unfunded loan commitments (1) |  | $ | 884,178 |  |  | $ | 435,627 |
Weighted-average cash coupon (2) |  | 8.2 | % |  | 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 at the dates indicated ($ in thousands):
|  | September 30, 2018 |  | December 31, 2017
Property Type |  | Carrying Value |  | % of Portfolio |  | Carrying Value |  | % of Portfolio
Hotel |  | $ | 1,229,460 |  |  | 25.5 | % |  | $ | 645,056 |  |  | 17.6 | %
Residential-for-sale: inventory (1) |  | 602,826 |  |  | 12.5 | % |  | 92,438 |  |  | 2.5 | %
Residential-for-sale: construction (1) |  | 385,303 |  |  | 8.0 | % |  | 349,739 |  |  | 9.5 | %
Urban Predevelopment |  | 677,440 |  |  | 14.0 | % |  | 654,736 |  |  | 17.8 | %
Office |  | 520,926 |  |  | 10.8 | % |  | 513,830 |  |  | 14.0 | %
Multifamily |  | 450,017 |  |  | 9.3 | % |  | 465,057 |  |  | 12.6 | %
Mixed Use |  | 320,984 |  |  | 6.6 | % |  | 354,640 |  |  | 9.6 | %
Healthcare |  | 255,588 |  |  | 5.3 | % |  | 173,870 |  |  | 4.7 | %
Retail Center |  | 202,031 |  |  | 4.2 | % |  | 198,913 |  |  | 5.4 | %
Other |  | 151,471 |  |  | 3.1 | % |  | 154,141 |  |  | 4.2 | %
Industrial |  | 32,000 |  |  | 0.7 | % |  | 77,338 |  |  | 2.1 | %
Total |  | $ | 4,828,046 |  |  | 100.0 | % |  | $ | 3,679,758 |  |  | 100.0 | %
(1) | To conform to the current period’s presentation, loans with a combined carrying value of $442.2 million classified as residential-for-sale as of December 31, 2017 were broken out into $349.8 million of residential-for-sale: construction and $92.4 million of residential-for-sale: inventory.
The table below details the geographic distribution of the properties securing the loans in our portfolio at the dates indicated ($ in thousands):
|  | September 30, 2018 |  | December 31, 2017
Geographic Location |  | Carrying Value |  | % of Portfolio |  | Carrying Value |  | % of Portfolio
Manhattan, NY |  | $ | 1,365,211 |  |  | 28.3 | % |  | $ | 1,173,833 |  |  | 31.9 | %
Brooklyn, NY |  | 332,372 |  |  | 6.9 | % |  | 357,611 |  |  | 9.7 | %
Northeast |  | 37,410 |  |  | 0.8 | % |  | 100,536 |  |  | 2.7 | %
Midwest |  | 800,196 |  |  | 16.6 | % |  | 683,380 |  |  | 18.6 | %
Southeast |  | 608,925 |  |  | 12.6 | % |  | 531,582 |  |  | 14.4 | %
West |  | 522,818 |  |  | 10.8 | % |  | 227,024 |  |  | 6.2 | %
Mid Atlantic |  | 213,881 |  |  | 4.4 | % |  | 191,976 |  |  | 5.2 | %
Southwest |  | 115,683 |  |  | 2.4 | % |  | 33,615 |  |  | 0.9 | %
United Kingdom |  | 706,342 |  |  | 14.6 | % |  | 303,488 |  |  | 8.3 | %
Other International |  | 125,208 |  |  | 2.6 | % |  | 76,713 |  |  | 2.1 | %
Total |  | $ | 4,828,046 |  |  | 100.0 | % |  | $ | 3,679,758 |  |  | 100.0 | %
Carrying Value of Loan Portfolio Based on Internal Risk Ratings | The following table allocates the carrying value of our loan portfolio based on our internal risk ratings at the dates indicated ($ in thousands):
|  | September 30, 2018 |  | December 31, 2017
Risk Rating |  | Number of Loans |  | Carrying Value |  | % of Loan Portfolio |  | Number of Loans |  | Carrying Value |  | % of Loan Portfolio
1 |  | — |  | $ | — |  |  | — | % |  | — |  | $ | — |  |  | — | %
2 |  | 5 |  | 340,237 |  |  | 7 | % |  | 5 |  | 399,326 |  |  | 10 | %
3 |  | 60 |  | 4,254,383 |  |  | 88 | % |  | 51 |  | 3,034,358 |  |  | 83 | %
4 |  | 1 |  | 171,127 |  |  | 4 | % |  | 1 |  | 168,208 |  |  | 5 | %
5 |  | 2 |  | 62,299 |  |  | 1 | % |  | 2 |  | 77,866 |  |  | 2 | %
|  | 68 |  | $ | 4,828,046 |  |  | 100 | % |  | 59 |  | $ | 3,679,758 |  |  | 100 | %

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- Definition Tabular disclosure of financing receivables by credit quality indicator. The credit quality indicator is a statistic about the credit quality of financing receivables. Examples include, but not limited to, consumer credit risk scores, credit-rating-agency ratings, an entity's internal credit risk grades, loan-to-value ratios, collateral, collection experience and other internal metrics. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=84173941&loc=SL6953659-111524 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -Section 55 -Paragraph 19 -URI http://asc.fasb.org/extlink&oid=82894031&loc=SL6953803-111525 + Details
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- Definition Tabular disclosure of the various types of trade accounts and notes receivable and for each the gross carrying value, allowance, and net carrying value as of the balance sheet date. Presentation is categorized by current, noncurrent and unclassified receivables. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.3,4) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 + Details
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