Schedule IV — Mortgage Loans on Real Estate

($ in thousands)

December 31, 2018



Description	Number of Loans	Property Type	Contractual Interest Rate ⁽¹⁾	Maturity Date⁽²⁾	Periodic Payment	Principal Balance	Carrying Value	Principal Amount of Mortgages Subject to Delinquent Principal or Interest
Commercial mortgage loans individually >3%
Loan A		Urban Predevelopment	8.80%	Jul 2019	Interest Only	$220,000	$222,017	—
Loan B		Residential-for-sale: inventory	7.20%	Mar 2021	Interest Only	216,818	216,168	—
Loan C		Hotel	7.00%	Jan 2022	Interest Only	215,000	215,323	—
Loan D		Urban Predevelopment	5.90%	Mar 2019	Interest Only	178,556	178,117	—
Loan E		Office	5.90%	Oct 2021	Interest Only	177,617	176,260	—
Loan F		Office	7.30%	Jan 2023	Principal and Interest	172,626	171,312	—
Loan G		Retail Center	5.50%	Sep 2020	Interest Only	169,035	156,067	—
Loan H		Hotel	5.80%	Apr 2023	Interest Only	151,550	150,959	—

Commercial mortgage loans individually <3%
First Mortgage	37	Hotel, Office, Multifamily, Residential-for-sale: inventory, Urban Predevelopment, Residential-for-sale: construction, Other, Mixed Use	0.0% - 9.8%	2019 - 2024	Principal and Interest / Interest Only	2,427,032	2,392,758	—
Total Commercial mortgage loans						$3,928,234	$3,878,981	—

Subordinate loans individually >3%(3)
Loan I		Residential-for-sale: construction	16.80%	Jul 2020	Interest Only	181,572	182,895	—

Subordinate loans individually <3%(3)
Subordinate Mortgage	23	Residential-for-sale: construction, Hotel, Multifamily, Other, Mixed Use, Residential-for-sale: inventory, Industrial, Office	0.0% - 20.0%	2019 - 2028	Principal and Interest / Interest Only	872,708	865,717	—
Total Subordinate loans						$1,054,280	$1,048,612	—

Total loans (4)						$4,982,514	$4,927,593	—

———————


(1)	Assumes applicable benchmark rate for all floating rate loans


(2)	Assumes all extension options are exercised.


(3)	Subject to prior liens.


(4)	The aggregate cost for federal income tax purposes is $5.0 billion.

The following table summarizes the changes in the carrying amounts of our loan investment portfolio during 2018 and 2017 ($ in thousands):



	Year Ended			Year Ended
Reconciliation of Carrying Amount of Loans	December 31, 2018			December 31, 2017
Balance at beginning of year	$	3,679,758		$	2,693,092
Loan fundings⁽¹⁾	2,350,865			1,828,758
Loan repayments	(1,066,843		)	(891,848		)
Unrealized gain (loss) on foreign currency translation	(51,013		)	23,612
Discount accretion	—			—
Provision for loan losses⁽²⁾and impairments	(20,000		)	(1,981		)
Deferred Fees	(34,066		)	(27,424		)
PIK interest, amortization of fees and other items	68,892			55,549
Balance at the close of year	$	4,927,593		$	3,679,758

———————

(1) During the year ended December 31, 2018, $34.6 million was purchased from a fund managed by an affiliate of the Manager.

(2) During the year ended December 31, 2018, we recorded a loan loss provision of $20.0 million, made up of $5.0 million on a commercial mortgage loan secured by fully-built, for-sale residential condominium units located in Bethesda, MD, and $15.0 million on a commercial mortgage loan, secured by a retail center in Cincinnati, Ohio. During the year ended December 31, 2017, we recorded a loan loss provision of $2.0 million on a commercial mortgage loan secured by fully-built, for-sale residential condominium units located in Bethesda, MD. In addition to the $2.0 million provision for loan loss, we recorded an impairment of $3.0 million on a related investment previously recorded under other assets on our consolidated balance sheet.