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Commercial Mortgage and Subordinate Loans, Net (Tables) | 6 Months Ended
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Jun. 30, 2019
Receivables [Abstract] |
Schedule of Loan Portfolio | Our loan portfolio was comprised of the following at June 30, 2019 and December 31, 2018 ($ in thousands):
Loan Type |  | June 30, 2019 |  | December 31, 2018
Commercial mortgage loans, net |  | $ | 4,206,754 |  |  | $ | 3,878,981 |
Subordinate loans, net |  | 1,236,990 |  |  | 1,048,612 |
Total loans, net |  | $ | 5,443,744 |  |  | $ | 4,927,593 |
Activity Related to Loan Investment Portfolio | Activity relating to our loan investment portfolio, for the six months ended June 30, 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 |  | 787,917 |  |  | — |  |  | — |  |  | 787,917 |
Add-on loan fundings (3) |  | 188,322 |  |  | — |  |  | — |  |  | 188,322 |
Loan repayments |  | (490,087 | ) |  | — |  |  | — |  |  | (490,087 | )
Gain (loss) on foreign currency translation |  | (2,806 | ) |  | (58 | ) |  | — |  |  | (2,864 | )
Provision for loan loss / (Realized loss on Investment) (2) |  | (12,513 | ) |  | — |  |  | 15,000 |  |  | 2,487 |
Deferred fees |  | — |  |  | (12,275 | ) |  | — |  |  | (12,275 | )
PIK interest and amortization of fees |  | 29,201 |  |  | 13,450 |  |  | — |  |  | 42,651 |
June 30, 2019 |  | $ | 5,482,548 |  |  | $ | (16,823 | ) |  | $ | (21,981 | ) |  | $ | 5,443,744 |
——————— (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. During the second quarter of 2019, the underlying collateral on a commercial mortgage loan and a contiguous subordinate loan secured by a multifamily property located in Williston, ND was sold resulting in a realized loss of $12.5 million. Consequently, the previously recorded $15.0 million loan loss provision was reversed. (3) Represents fundings for loans closed prior to 2019.
Schedule of Overall Statistics for the Loan Portfolio | The following table details overall statistics for our loan portfolio at the dates indicated ($ in thousands):
|  | June 30, 2019 |  | December 31, 2018
Number of loans |  | 71 |  |  | 69 |
Principal balance |  | $ | 5,482,548 |  |  | $ | 4,982,514 |
Carrying value |  | $ | 5,443,744 |  |  | $ | 4,927,593 |
Unfunded loan commitments (1) |  | $ | 1,192,118 |  |  | $ | 1,095,598 |
Weighted-average cash coupon (2) |  | 8.2 | % |  | 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):
|  | June 30, 2019 |  | December 31, 2018
Property Type |  | Carrying Value |  | % of Portfolio |  | Carrying Value |  | % of Portfolio
Hotel |  | $ | 1,322,167 |  |  | 24.3 | % |  | $ | 1,286,590 |  |  | 26.1 | %
Residential-for-sale: construction |  | 706,260 |  |  | 12.9 | % |  | 528,510 |  |  | 10.7 | %
Residential-for-sale: inventory |  | 395,375 |  |  | 7.3 | % |  | 577,053 |  |  | 11.7 | %
Office |  | 1,202,311 |  |  | 22.2 | % |  | 832,620 |  |  | 16.9 | %
Urban Predevelopment |  | 595,263 |  |  | 10.8 | % |  | 683,886 |  |  | 13.9 | %
Multifamily |  | 472,785 |  |  | 8.7 | % |  | 448,899 |  |  | 9.1 | %
Industrial |  | 227,451 |  |  | 4.2 | % |  | 32,000 |  |  | 0.6 | %
Retail Center |  | 158,128 |  |  | 2.9 | % |  | 156,067 |  |  | 3.2 | %
Healthcare |  | 142,933 |  |  | 2.6 | % |  | 156,814 |  |  | 3.2 | %
Other |  | 120,041 |  |  | 2.2 | % |  | 151,197 |  |  | 3.1 | %
Mixed Use |  | 101,030 |  |  | 1.9 | % |  | 73,957 |  |  | 1.5 | %
Total |  | $ | 5,443,744 |  |  | 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):
|  | June 30, 2019 |  | December 31, 2018
Geographic Location |  | Carrying Value |  | % of Portfolio |  | Carrying Value |  | % of Portfolio
Manhattan, NY |  | $ | 1,883,438 |  |  | 34.6 | % |  | $ | 1,669,145 |  |  | 33.9 | %
Brooklyn, NY |  | 553,859 |  |  | 10.2 | % |  | 346,056 |  |  | 7.0 | %
Northeast |  | 18,738 |  |  | 0.3 | % |  | 23,479 |  |  | 0.5 | %
West |  | 696,804 |  |  | 12.8 | % |  | 614,160 |  |  | 12.5 | %
Midwest |  | 638,981 |  |  | 11.8 | % |  | 631,710 |  |  | 12.8 | %
Southeast |  | 501,878 |  |  | 9.2 | % |  | 559,043 |  |  | 11.3 | %
Southwest |  | 119,910 |  |  | 2.2 | % |  | 96,345 |  |  | 2.0 | %
Mid Atlantic |  | 108,056 |  |  | 2.0 | % |  | 211,775 |  |  | 4.3 | %
United Kingdom |  | 654,952 |  |  | 12.0 | % |  | 700,460 |  |  | 14.2 | %
Other International |  | 267,128 |  |  | 4.9 | % |  | 75,420 |  |  | 1.5 | %
Total |  | $ | 5,443,744 |  |  | 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):
|  | June 30, 2019 |  | December 31, 2018
Risk Rating |  | Number of Loans |  | Carrying Value |  | % of Loan Portfolio |  | Number of Loans |  | Carrying Value |  | % of Loan Portfolio
1 |  | — |  | $ | — |  |  | — | % |  | — |  | $ | — |  |  | — | %
2 |  | 3 |  | 253,817 |  |  | 5 | % |  | 3 |  | 138,040 |  |  | 3 | %
3 |  | 66 |  | 5,010,351 |  |  | 92 | % |  | 63 |  | 4,573,930 |  |  | 93 | %
4 |  | — |  | — |  |  | — | % |  | — |  | — |  |  | — | %
5 |  | 2 |  | 179,576 |  |  | 3 | % |  | 3 |  | 215,623 |  |  | 4 | %
|  | 71 |  | $ | 5,443,744 |  |  | 100 | % |  | 69 |  | $ | 4,927,593 |  |  | 100 | %
Weighted-average risk rating |  |  |  | 3.0 |  |  |  |  |  |  | 3.1 |

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