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Schedule IV - Mortgage Loans on Real Estate
 12 Months Ended
Dec. 31, 2019
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Abstract]  
Schedule IV - Mortgage Loans on Real Estate
Schedule IV — Mortgage Loans on Real Estate
As of December 31, 2019
($ in thousands)
Description
Number of Loans
Property Type/location
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 Retail/United Kingdom
4.96%
Dec 2023
Principal and Interest
$
331,425

 
$
328,145

 
—
Loan B
 
Urban Retail/Manhattan, NY
4.75%
Sep 2024
Interest Only
318,106

 
315,561

 
—
Loan C
 
Hotel/Spain
3.00%
Aug 2024
Interest Only
244,321

 
241,674

 
—
Loan D
 
Healthcare/United Kingdom
4.56%
Oct 2024
Principal and Interest
229,183

 
226,761

 
—
Loan E
 
Industrial/Brooklyn, NY
5.95%
Feb 2024
Interest Only
197,000

 
195,940

 
—
 
 
 
 
 
 
 
 
 
 
 
Commercial mortgage loans individually <3%
 
 
 
 
 
 
 
First Mortgage
46
Hotel, Office, Multifamily, Residential-for-sale: inventory, Urban Predevelopment, Residential-for-sale: construction, Retail Center, Mixed Use/Various
0.0% - 9.2%
2020-2026
Principal and Interest / Interest Only
4,102,073

 
4,018,886

 
—
Total Commercial mortgage loans
 
 
 
$
5,422,108

 
$
5,326,967

 
—
 
 
 
 
 
 
 
 
 
 
 
Subordinate loans and other lending assets individually >3%
 
 
 
 
 
 
 
 
Loan F
 
Residential-for-sale: construction/Manhattan, NY
17.22%
Feb 2021
Interest Only
206,624

 
209,582

 
—
 
 
 
 
 
 
 
 
 
 
 
Subordinate loans and other lending assets individually <3%
 
 
 
 
 
 
 
 
Subordinate Mortgage and other lending assets
20
Residential-for-sale: construction, Hotel, Multifamily, Healthcare, Mixed Use, Residential-for-sale: inventory, Industrial, Office/Various
7.0% - 19.2%
2020-2028
Principal and Interest / Interest Only
839,110

 
838,544

 
—
Total Subordinate loans and other lending assets(3)
 
 
 
$
1,045,734

 
$
1,048,126

 
—
 
 
 
 
 
 
 
 
 
 
 
Total loans (4)
 
 
 
 
 
$
6,467,842

 
$
6,375,093

 
—

 ———————
(1)
Assumes applicable benchmark rate as of December 31, 2019 for all floating rate loans
(2)
Assumes all extension options are exercised.
(3)
Subject to prior liens of approximately $4.3 billion.
(4)
The aggregate cost for U.S. federal income tax purposes is $6.4 billion.






The following table summarizes the changes in the carrying amounts of our loan investment portfolio during 2019 and 2018 ($ in thousands):

 
 
 
 
Year Ended
 
Year Ended
Reconciliation of Carrying Amount of Loans
 
 
 
December 31, 2019
 
December 31, 2018
Balance at beginning of year

$
4,927,593

 
$
3,679,758

Loan fundings (1)
 
3,435,457

 
2,350,865

Loan repayments (2)
 
(2,037,322
)
 
(1,066,843
)
Gain (loss) on foreign currency translation
 
43,649

 
(51,013
)
Realized loss on investment, net of provision for loan loss reversal (3)
 
2,487

 
—

Provision for loan losses (4)
 
(35,000
)
 
(20,000
)
Deferred Fees
 
(46,275
)
 
(34,066
)
PIK interest, amortization of fees and other items (5)

84,504

 
68,892

Balance at the close of year
 
$
6,375,093

 
$
4,927,593

 ———————
(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, 2019, we sold $152.6 million in mezzanine loans secured by an urban retail property to two funds managed by an affiliate of the Manager.
(3)
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.
(4)
During the year ended December 31, 2019, we recorded $35.0 million for provision for loan losses and impairments, comprised of a (i) $32.0 million loan loss provision recorded against a commercial mortgage loan secured by a retail center located in Cincinnati, OH, and (ii) $3.0 million loan loss provision recorded against a commercial mortgage loan secured by a fully-built, for-sale residential condominium units located in Bethesda, MD. During the year ended December 31, 2018, we recorded $20.0 million for provision for loan losses and impairments, comprised of a (i) $15.0 million and (ii) $5.0 million loan loss provision against the same loans as in 2019, respectively.
(5)
Other items primarily consist of purchase discounts or premiums, exit fees and deferred origination expenses, as well as $1.4 million in cost recovery proceeds from a commercial mortgage loan secured by a retail center in Cincinnati, OH.