Commercial Mortgage and Subordinate Loans, Net (Tables)

3 Months Ended

Mar. 31, 2019

Our loan portfolio was comprised of the following at March 31, 2019 and December 31, 2018 ($ in thousands):



Loan Type	March 31, 2019		December 31, 2018
Commercial mortgage loans, net	$	4,003,089	$	3,878,981
Subordinate loans, net	1,183,910		1,048,612
Total loans, net	$	5,186,999	$	4,927,593

Activity relating to our loan investment portfolio, for the three months ended March 31, 2019, was as follows ($ in thousands):



	Principal Balance			Deferred Fees/Other Items ⁽¹⁾			Provision for Loan Loss ⁽²⁾			Carrying Value
December 31, 2018	$	4,982,514		$	(17,940	)	$	(36,981	)	$	4,927,593
New loan fundings	441,844			—			—			441,844
Add-on loan fundings ⁽³⁾	110,331			—			—			110,331
Loan repayments	(322,354		)	—			—			(322,354		)
Gain (loss) on foreign currency translation	15,033			(136		)	—			14,897
Deferred fees	—			(6,069		)	—			(6,069		)
PIK interest and amortization of fees	14,321			6,436			—			20,757
March 31, 2019	$	5,241,689		$	(17,709	)	$	(36,981	)	$	5,186,999

———————

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

(2) In addition to the $37.0 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 2019.

Schedule of Overall Statistics for the Loan Portfolio

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



	March 31, 2019			December 31, 2018
Number of loans	69			69
Principal balance	$	5,241,689		$	4,982,514
Carrying value	$	5,186,999		$	4,927,593
Unfunded loan commitments ⁽¹⁾	$	1,039,089		$	1,095,598
Weighted-average cash coupon ⁽²⁾	8.4		%	8.4		%
Weighted-average remaining term ⁽³⁾	2.9 years			2.8 years

———————


(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.


(3)	Assumes all extension options are exercised.

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):



	March 31, 2019				December 31, 2018
Property Type	Carrying Value		% of Portfolio		Carrying Value		% of Portfolio
Hotel	$	1,330,842	25.7	%	$	1,286,590	26.1	%
Residential-for-sale: construction	631,501		12.1	%	528,510		10.7	%
Residential-for-sale: inventory	421,815		8.1	%	577,053		11.7	%
Office	956,989		18.5	%	832,620		16.9	%
Urban Predevelopment	610,888		11.8	%	683,886		13.9	%
Multifamily	521,087		10.0	%	448,899		9.1	%
Industrial	227,206		4.4	%	32,000		0.6	%
Retail Center	156,008		3.0	%	156,067		3.2	%
Healthcare	144,310		2.8	%	156,814		3.2	%
Mixed Use	114,284		2.2	%	73,957		1.5	%
Other	72,069		1.4	%	151,197		3.1	%
Total	$	5,186,999	100.0	%	$	4,927,593	100.0	%

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



	March 31, 2019				December 31, 2018
Geographic Location	Carrying Value		% of Portfolio		Carrying Value		% of Portfolio
Manhattan, NY	$	1,825,136	35.2	%	$	1,669,145	33.9	%
Brooklyn, NY	547,139		10.5	%	346,056		7.0	%
Northeast	18,751		0.4	%	23,479		0.5	%
West	635,733		12.3	%	614,160		12.5	%
Midwest	617,599		11.9	%	631,710		12.8	%
Southeast	567,794		10.9	%	559,043		11.3	%
Southwest	120,127		2.3	%	96,345		2.0	%
Mid Atlantic	110,754		2.1	%	211,775		4.3	%
United Kingdom	668,507		12.9	%	700,460		14.2	%
Other International	75,459		1.5	%	75,420		1.5	%
Total	$	5,186,999	100.0	%	$	4,927,593	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):



	March 31, 2019					December 31, 2018
Risk Rating	Number of Loans	Carrying Value		% of Loan Portfolio		Number of Loans	Carrying Value		% of Loan Portfolio
1	—	$	—	—	%	—	$	—	—	%
2	2	58,847		1	%	3	138,040		3	%
3	64	4,915,843		95	%	63	4,573,930		93	%
4	—	—		—	%	—	—		—	%
5	3	212,309		4	%	3	215,623		4	%
	69	$	5,186,999	100	%	69	$	4,927,593	100	%

Weighted-average risk rating				3.1					3.1