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Commercial Mortgage and Subordinate Loans, Net (Tables)
 6 Months Ended
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