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Commercial Mortgage, Subordinate Loans and Other Lending Assets, Net (Tables)
 9 Months Ended
Sep. 30, 2019
Receivables [Abstract]  
Schedule of Loan Portfolio
Our loan portfolio was comprised of the following at September 30, 2019 and December 31, 2018 ($ in thousands):
Loan Type
 
September 30, 2019
 
December 31, 2018
Commercial mortgage loans, net
 
$
4,779,501

 
$
3,878,981

Subordinate loans and other lending assets, net
 
1,335,073

 
1,048,612

Total investments, net
 
$
6,114,574

 
$
4,927,593
Activity Related to Loan Investment Portfolio
Activity relating to our loan investment portfolio, for the nine months ended September 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
 
1,770,623

 
—

 
—

 
1,770,623

Add-on loan fundings (3)
 
290,043

 
—

 
—

 
290,043

Loan repayments
 
(843,417
)
 
—

 
—

 
(843,417
)
Gain (loss) on foreign currency translation
 
(38,505
)
 
105

 
—

 
(38,400
)
Realized loss on investment, net of provision for loan loss reversal (2)
 
(12,513
)
 
—

 
15,000

 
2,487

Provision for loan losses
 
—

 
—

 
(35,000
)
 
(35,000
)
Deferred fees
 
—

 
(24,524
)
 
—

 
(24,524
)
PIK interest and amortization of fees
 
43,728

 
21,441

 
—

 
65,169

September 30, 2019
 
$
6,192,473

 
$
(20,918
)
 
$
(56,981
)
 
$
6,114,574

———————
(1) Other items primarily consist of purchase discounts or premiums, exit fees and deferred origination expenses.
(2) In addition to the $57.0 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):
 
 
September 30, 2019
 
December 31, 2018
Number of loans
 
74

 
69

Principal balance
 
$
6,192,473

 
$
4,982,514

Carrying value
 
$
6,114,574

 
$
4,927,593

Unfunded loan commitments (1)
 
$
1,073,423

 
$
1,095,598

Weighted-average cash coupon (2)
 
7.5
%
 
8.4
%
Weighted-average remaining term (3)
 
3.1 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):
 
 
September 30, 2019
 
December 31, 2018
Property Type
 
Carrying
Value
 
% of
Portfolio
 
Carrying
Value
 
% of
Portfolio
Hotel
 
$
1,579,667

 
25.8
%
 
$
1,286,590

 
26.1
%
Residential-for-sale: construction
 
629,069

 
10.3
%
 
528,510

 
10.7
%
Residential-for-sale: inventory
 
349,259

 
5.7
%
 
577,053

 
11.7
%
Office
 
1,406,678

 
23.0
%
 
832,620

 
16.9
%
Urban Predevelopment
 
602,946

 
9.9
%
 
683,886

 
13.9
%
Urban Retail
 
466,343

 
7.6
%
 
—

 
—
%
Multifamily
 
306,142

 
5.0
%
 
448,899

 
9.1
%
Industrial
 
227,696

 
3.7
%
 
32,000

 
0.6
%
Retail Center
 
126,068

 
2.1
%
 
156,067

 
3.2
%
Healthcare
 
190,832

 
3.1
%
 
156,814

 
3.2
%
Other
 
127,229

 
2.1
%
 
151,197

 
3.1
%
Mixed Use
 
102,645

 
1.7
%
 
73,957

 
1.5
%
Total
 
$
6,114,574

 
100.0
%
 
$
4,927,593

 
100.0
%



Geography

The table below details the geographic distribution of the properties securing the loans in our portfolio at the dates indicated ($ in thousands):
 
 
September 30, 2019
 
December 31, 2018
Geographic Location
 
Carrying
Value
 
% of
Portfolio
 
Carrying
Value
 
% of
Portfolio
Manhattan, NY
 
$
2,286,709

 
37.4
%
 
$
1,669,145

 
33.9
%
Brooklyn, NY
 
443,966

 
7.3
%
 
346,056

 
7.0
%
Northeast
 
19,195

 
0.3
%
 
23,479

 
0.5
%
West
 
728,788

 
11.9
%
 
614,160

 
12.5
%
Midwest
 
626,867

 
10.3
%
 
631,710

 
12.8
%
Southeast
 
568,103

 
9.3
%
 
559,043

 
11.3
%
Southwest
 
126,506

 
2.1
%
 
96,345

 
2.0
%
Mid Atlantic
 
110,895

 
1.8
%
 
211,775

 
4.3
%
United Kingdom
 
815,168

 
13.3
%
 
700,460

 
14.2
%
Germany
 
185,208

 
3.0
%
 
—

 
—
%
Italy
 
129,524

 
2.1
%
 
—

 
—
%
Other International
 
73,645

 
1.2
%
 
75,420

 
1.5
%
Total
 
$
6,114,574

 
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):
 
 
September 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
 
9
 
470,409

 
8
%
 
3
 
138,040

 
3
%
3
 
63
 
5,502,402

 
90
%
 
63
 
4,573,930

 
93
%
4
 
—
 
—

 
—
%
 
—
 
—

 
—
%
5
 
2
 
141,763

 
2
%
 
3
 
215,623

 
4
%
 
 
74
 
$
6,114,574

 
100
%
 
69
 
$
4,927,593

 
100
%
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted-average risk rating
 
 
 
3.0

 
 
 
 
 
3.1